AB302, s. 3 5Section 3. 50.03 (4) (a) 1. a. of the statutes is amended to read:
AB302,5,136 50.03 (4) (a) 1. a. Except as provided in sub. (4m) (a), the department shall issue
7a license for a nursing home if it finds the applicant to be fit and qualified and if it
8finds that the nursing home meets the requirements established by this subchapter
9and, as applicable, requirements under 42 CFR 483 related to the operation of a
10nursing home
. The department, or its designee, shall make such inspections and
11investigations as are necessary to determine the conditions existing in each case and
12shall file written reports. The department shall promulgate rules defining "fit and
13qualified" for the purposes of this subd. 1. a.
AB302, s. 4 14Section 4. 50.03 (4m) (a) of the statutes is amended to read:
AB302,6,215 50.03 (4m) (a) If the applicant for licensure as a nursing home has not been
16previously licensed under this subchapter or if the nursing home is not in operation
17at the time application is made, the department shall issue a probationary license.
18A probationary license shall be valid for 12 months from the date of issuance unless
19sooner suspended or revoked under sub. (5). Prior to the expiration of a probationary
20license, the department shall inspect the nursing home and, if the nursing home
21meets the applicable requirements for licensure and, if applicable, substantially
22complies with requirements under 42 CFR 483 related to the operation of a nursing
23home
, shall issue a regular license under sub. (4) (a) 1. a. If the department finds that
24the nursing home does not meet the requirements for licensure or does not
25substantially comply with requirements under 42 CFR 483 related to the operation

1of a nursing home
, the department may not issue a regular license under sub. (4) (a)
21. a.
AB302, s. 5 3Section 5. 50.03 (5) (a) of the statutes is amended to read:
AB302,6,114 50.03 (5) (a) Power of department. The department, after notice to a nursing
5home applicant or licensee, may suspend or revoke a license in any case in which the
6department finds that the nursing home has substantially failed to comply with the
7applicable requirements of this subchapter and the rules promulgated under this
8subchapter, with s. 49.498, or with requirements under 42 CFR 483 related to the
9operation of a nursing home
. No state or federal funds passing through the state
10treasury may be paid to a nursing home that does not have a valid license issued
11under this section.
AB302, s. 6 12Section 6. 50.03 (5) (b) of the statutes is amended to read:
AB302,6,1613 50.03 (5) (b) Form of notice. Notice under this subsection shall include a clear
14and concise statement of the violations on which the revocation is based, the statute
15or, rule, or federal requirement violated and notice of the opportunity for an
16evidentiary hearing under par. (c).
AB302, s. 7 17Section 7. 50.03 (7) (a) of the statutes is amended to read:
AB302,6,2518 50.03 (7) (a) Licensed facility. Notwithstanding the existence or pursuit of any
19other remedy, the department may, upon the advice of the attorney general, maintain
20an action in the name of the state in the circuit court for injunction or other process
21against any licensee, owner, operator, administrator or representative of any owner
22of a facility to restrain and enjoin the repeated violation of any of the provisions of
23this subchapter or, rules promulgated by the department under this subchapter, or
24requirements under 42 CFR 483 related to the operation of a nursing home
where
25the violation affects the health, safety or welfare of the residents.
AB302, s. 8
1Section 8. 50.03 (13) (a) of the statutes is amended to read:
AB302,7,152 50.03 (13) (a) New license. Whenever ownership of a facility is transferred from
3the person or persons named in the license to any other person or persons, the
4transferee must obtain a new license. The license may be a probationary license.
5Penalties under sub. (1) shall apply to violations of this subsection. The transferee
6shall notify the department of the transfer, file an application under sub. (3) (b), and
7apply for a new license at least 30 days prior to final transfer. Retention of any
8interest required to be disclosed under sub. (3) (b) after transfer by any person who
9held such an interest prior to transfer may constitute grounds for denial of a license
10where violations of this subchapter, or of requirements of 42 CFR 483 related to the
11operation of a nursing home,
for which notice had been given to the transferor are
12outstanding and uncorrected, if the department determines that effective control
13over operation of the facility has not been transferred. If the transferor was a
14provider under s. 49.43 (10), the transferee and transferor shall comply with s. 49.45
15(21).
AB302, s. 9 16Section 9. 50.04 (4) (a) 1. of the statutes is amended to read:
AB302,7,2517 50.04 (4) (a) 1. If Except as provided in par. (am) 2., if upon inspection or
18investigation the department determines that a nursing home is in violation of this
19subchapter or the rules promulgated under it and the violation is a class "A" or "B"
20violation, it shall promptly serve a notice of violation upon the licensee. Each notice
21of violation shall be prepared in writing and shall specify the nature of the violation,
22and the statutory provision or rule alleged to have been violated. The notice shall
23inform the licensee of the right to a hearing under par. (e). The written notice of a
24class "A" violation may be written and served by an agent of the department at the
25time of the inspection.
AB302, s. 10
1Section 10. 50.04 (4) (a) 2. b. of the statutes is amended to read:
AB302,8,52 50.04 (4) (a) 2. b. The nursing home has made every reasonable effort to prevent
3and correct the violation, but the violation occurred and remains uncorrected due to
4circumstances beyond the nursing home's control, or the nursing home has corrected
5the violation
.
AB302, s. 11 6Section 11. 50.04 (4) (am) of the statutes is created to read:
AB302,8,97 50.04 (4) (am) Dual federal and state violations. 1. Notwithstanding s. 50.01
8(3), in this paragraph, "nursing home" does not include a facility serving people with
9developmental disabilities.
AB302,8,1610 2. If an act or omission constitutes a violation of this subchapter or the rules
11promulgated under this subchapter, s. 49.498, or requirements under 42 CFR 483
12related to the operation of a nursing home, the department may not issue under s.
1350.04 (4) (a) a notice of violation of this subchapter, the rules promulgated under this
14subchapter, or s. 49.498 if the department has, in a statement of deficiency, cited the
15nursing home for the violation under requirements under 42 CFR 483 related to the
16operation of a nursing home.
AB302, s. 12 17Section 12. 50.04 (4) (c) 1. of the statutes is amended to read:
AB302,8,2518 50.04 (4) (c) 1. The situation, condition or practice constituting a class "A"
19violation or immediate jeopardy shall be abated or eliminated immediately unless
20a fixed period of time, as determined by the department and specified in the notice
21of violation, is required for correction. If the class "A" violation or immediate
22jeopardy
is not abated or eliminated within the specified time period, the department
23shall maintain an action in circuit court for injunction or other process against the
24licensee, owner, operator, administrator or representative of the facility to restrain
25and enjoin violation of applicable rules, regulations and statutes.
AB302, s. 13
1Section 13. 50.04 (4) (d) 1. a. of the statutes is repealed and recreated to read:
AB302,9,62 50.04 (4) (d) 1. a. In the previous 15 months, the nursing home received written
3notice of a violation of a state statute or rule or a federal statute or regulation that
4involved immediate jeopardy to a resident; a class "A" violation; or 3 or more class
5"B" violations or violations that constituted actual harm not involving immediate
6jeopardy to a resident.
AB302, s. 14 7Section 14. 50.04 (4) (d) 1. b. of the statutes is repealed and recreated to read:
AB302,9,138 50.04 (4) (d) 1. b. In any 15-month period during the 36 months immediately
9preceding the period specified in subd. 1. a., the nursing home received written notice
10of a violation of a state statute or rule or a federal statute or regulation that involved
11immediate jeopardy to a resident; a class "A" violation; or 3 or more class "B"
12violations or violations that constituted actual harm not involving immediate
13jeopardy to a resident.
AB302, s. 15 14Section 15. 50.04 (4) (d) 2. of the statutes is amended to read:
AB302,9,2515 50.04 (4) (d) 2. A suspension of admissions under subd. 1. shall begin 90 days
16after a nursing home received its last notice of violation for a class "A" or class "B"
17violation specified in subd. 1. a. if the department determines that the violation
18remains uncorrected 90 days after the nursing home received the last notice of the
19violation. If the nursing home indicates to the department that the violation has
20been corrected, but the department is unable to verify that the violation has been
21corrected, a suspension of admissions under subd. 1. shall begin on the day that the
22department makes a return visit to the nursing home and determines that the
23violation has not been corrected.
A suspension of admissions under subd. 1. shall
24remain in effect until the department determines that all class "A" and class "B"
25violations by
the nursing home have been has corrected the violation. Admission of

1a new resident during the period for which admissions have been suspended
2constitutes a class "B" violation.
AB302, s. 16 3Section 16. 50.04 (4) (e) 1. of the statutes is amended to read:
AB302,10,234 50.04 (4) (e) 1. If a nursing home desires to contest any department action
5under this subsection, it shall send a written request for a hearing under s. 227.44
6to the division of hearings and appeals created under s. 15.103 (1) within 10 60 days
7of receipt of notice of the contested action. Department action that is subject to a
8hearing under this subsection includes service of a notice of a violation of this
9subchapter or rules promulgated under this subchapter, a notation in the report
10under sub. (3) (b), imposition of a plan of correction, and rejection of a nursing home's
11plan of correction, but does not include a correction order. Upon the request of the
12nursing home, the division shall grant a stay of the hearing under this paragraph
13until the department assesses a forfeiture, so that its hearing under this paragraph
14is consolidated with the forfeiture appeal hearing held under sub. (5) (e). All agency
15action under this subsection arising out of a violation, deficiency , or rejection and
16imposition of a plan of correction shall be the subject of a single hearing. Unless a
17stay is granted under this paragraph, the division shall commence the hearing
18within 30 days of the request for hearing, within 30 days of the department's
19acceptance of a nursing home's plan of correction, or within 30 days of the
20department's imposition of a plan of correction, whichever is later. The division shall
21send notice to the nursing home in conformance with s. 227.44. Issues litigated at
22the hearing may not be relitigated at subsequent hearings under this paragraph
23arising out of the same violation or deficiency.
AB302, s. 17 24Section 17. 50.04 (5) (a) 5m. of the statutes is repealed.
AB302, s. 18 25Section 18. 50.04 (5) (c) of the statutes is amended to read:
AB302,11,10
150.04 (5) (c) Assessment of forfeitures; powers and duties of department. The
2department may directly assess forfeitures provided for under par. (a). If the
3department determines that a forfeiture should be assessed for a particular violation
4or for failure to correct it, it the department shall send a notice of assessment of
5forfeiture
to the nursing home. The notice shall specify the amount of the forfeiture
6assessed, the violation, and the statute or rule alleged to have been violated, and
7shall inform the licensee of the right to hearing under par. (e). If the department does
8not issue a notice of forfeiture within 120 days after the date on which a nursing home
9receives the notice of a violation, the department may not assess a forfeiture for the
10violation.
AB302, s. 19 11Section 19. 50.04 (5) (e) of the statutes is amended to read:
AB302,12,312 50.04 (5) (e) Forfeiture appeal hearing. A nursing home may contest an
13assessment of a forfeiture by sending, within 10 60 days after receipt of notice of a
14contested action
the assessment of the forfeiture, a written request for hearing under
15s. 227.44 to the division of hearings and appeals created under s. 15.103 (1). The
16administrator of the division may designate a hearing examiner to preside over the
17case and recommend a decision to the administrator under s. 227.46. The decision
18of the administrator of the division shall be the final administrative decision. The
19division shall commence the hearing within 30 days of receipt of the request for
20hearing and shall issue a final decision within 15 days after the close of the hearing.
21Proceedings before the division are governed by ch. 227. In any petition for judicial
22review of a decision by the division, the party, other than the petitioner, who was in
23the proceeding before the division shall be the named respondent. If, after receipt
24of notice of assessment of a forfeiture, a nursing home that has timely requested a
25hearing under sub. (4) (e) on the notice of violation under sub. (4) for which the

1forfeiture was assessed requests a hearing under this paragraph on the assessment
2of the forfeiture, the hearing on the notice of violation under sub. (4) and the hearing
3on the assessment of the forfeiture shall be consolidated.
AB302, s. 20 4Section 20. 50.04 (5) (f) of the statutes is amended to read:
AB302,12,115 50.04 (5) (f) Forfeitures paid within 10 60 days. All forfeitures shall be paid to
6the department within 10 60 days of receipt of notice of assessment of the forfeiture
7or, if the forfeiture is contested under par. (e), within 10 60 days of receipt of the final
8decision after exhaustion of administrative review, unless the final decision is
9appealed and the order is stayed by court order under s. 50.03 (11). The department
10shall remit all forfeitures paid to the secretary of administration for deposit in the
11school fund.
AB302, s. 21 12Section 21. 50.04 (5) (fm) of the statutes is amended to read:
AB302,12,1813 50.04 (5) (fm) Forfeiture reduction for timely payment. If a nursing home does
14not contest a notice of violation under sub. (4) (e) and does not contest an assessment
15of a forfeiture under par. (e) for a class "A" or class "B" violation and pays the
16forfeiture to the department within 10 60 days after receipt of the notice of
17assessment of the forfeiture, the department shall reduce the amount of the
18assessment forfeiture by 35% 35 percent.
AB302, s. 22 19Section 22. 50.04 (6) (a) of the statutes is repealed and recreated to read:
AB302,12,2220 50.04 (6) (a) Power of department. 1. In addition to the right to impose
21forfeitures under sub. (5), the department may issue a conditional license to any
22nursing home if the department finds that any of the following is true:
AB302,12,2423 a. A class "A" or class "B" violation, as defined in sub. (4), continues to exist in
24the nursing home.
AB302,13,2
1b. A federal violation continues to exist that constitutes immediate jeopardy or
2actual harm not involving immediate jeopardy to a resident.
AB302,13,43 2. The issuance of a conditional license shall revoke any outstanding license
4held by the nursing home.
AB302,13,65 3. The nursing home may seek review of a decision to issue a conditional license
6as provided in s. 50.03 (5).
AB302, s. 23 7Section 23. 50.04 (8) of the statutes is created to read:
AB302,13,138 50.04 (8) Protection and cost effectiveness programs; quality assurance.
9(a) The department may distribute moneys from the appropriation account under
10s. 20.435 (6) (g) for innovative projects designed to protect the property and the
11health, safety, and welfare of residents in nursing homes and to improve the
12efficiency and cost effectiveness of the operation of facilities so as to improve the
13quality of life, care, and treatment of residents.
AB302,13,1814 (b) The department shall establish and maintain a quality assurance and
15improvement committee to review proposals and award moneys for innovative
16projects, as described in par. (a), that are approved by the committee. The
17department shall promulgate rules to guide the actions of the quality assurance and
18improvement committee.
AB302, s. 24 19Section 24. 50.05 (2) (f) (intro.) of the statutes is amended to read:
AB302,13,2520 50.05 (2) (f) (intro.) The facility is a nursing facility that is in violation of s.
2149.498 or, a rule promulgated under s. 49.498, or a requirement under 42 CFR 483
22related to the operation of a nursing facility
, meets the criteria established by rule
23under s. 49.498 (14) (c) for placement of a monitor or appointment of a receiver, and
24there is a need for placement of a monitor or appointment of a receiver during the
25period that any of the following applies:
AB302, s. 25
1Section 25. 50.05 (2) (f) 2. of the statutes is amended to read:
AB302,14,52 50.05 (2) (f) 2. The nursing facility institutes improvements in order to bring
3the nursing facility into compliance with the requirements of s. 49.498 or, a rule
4promulgated under s. 49.498, or a requirement under 42 CFR 483 related to the
5operation of a nursing facility
.
AB302, s. 26 6Section 26. Initial applicability.
AB302,14,107 (1) Hearing requests. The treatment of section 50.04 (4) (e) 1. and (5) (e) of the
8statutes first applies to requests for hearings related to a notice of violation, a report
9notation, a of plan correction, or a rejection of a plan of correction that is issued on
10the effective date of this subsection.
AB302,14,1311 (2) Conditional licensure. The treatment of sections 50.01 (1ng) and 50.04 (6)
12(a) of the statutes first applies to violations that continue to exist on the effective date
13of this subsection.
AB302,14,1614 (3) Suspension of admissions. The treatment of sections 50.01 (1ng) and 50.04
15(4) (d) 1. a. and b. and (d) 2. of the statutes first applies to written notice of violations
16received on the effective date of this subsection.
AB302,14,1917 (4) Suspension or revocation of licensure. The treatment of section 50.03 (5)
18(a) and (b) of the statutes first applies to findings made by the department of health
19services on the effective date of this subsection.
AB302,14,2220 (5) Provisional license. The treatment of section 50.03 (4m) (a) of the statutes
21first applies to inspections made by the department of health services on the effective
22date of this subsection.
AB302,15,3
1(6) Injunctions. The treatment of section 50.03 (7) (a) of the statutes first
2applies to an action for injunction filed by the department of health services on the
3effective date of this subsection.
AB302,15,44 (End)
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