SB21: Bill Text

SB21,2998 Section 2998. 102.75 (1g) (a) of the statutes, as created by 2015 Wisconsin Act .... (this act), is amended to read:

SB21,1184,23 102.75 (1g) (a) Subject to par. (b), the department office shall collect from each licensed worker's compensation carrier the proportion of reimbursement approved by the department office under s. 102.44 (1) (c) 1. for supplemental benefits paid in the year before the previous year that the total indemnity paid or payable under this chapter by the carrier in worker's compensation cases initially closed during the preceding calendar year, other than for increased, double, or treble compensation, bore to the total indemnity paid in cases closed the previous calendar year under this chapter by all carriers, other than for increased, double, or treble compensation.

SB21,2999 Section 2999. 102.75 (1g) (b) of the statutes, as created by 2015 Wisconsin Act .... (this act), is amended to read:

SB21,1185,8 102.75 (1g) (b) The maximum amount that the department office may collect under par. (a) in a calendar year is $5,000,000. If the amount determined collectible under par. (a) in a calendar year is $5,000,000 or less, the department office shall collect that amount. If the amount determined collectible under par. (a) in a calendar year exceeds $5,000,000, the department office shall collect $5,000,000 in the year in which the determination is made and, subject to the maximum amount collectible of $5,000,000 per calendar year, shall collect the excess in the next calendar year or in subsequent calendar years until that excess is collected in full.

SB21,3000 Section 3000. 102.75 (1m) of the statutes is amended to read:

SB21,1185,14 102.75 (1m) The moneys collected under sub. subs. (1) and (1g) and under ss. 102.28 (2) and 102.31 (7), together with all accrued interest, shall constitute a separate nonlapsible fund designated as the worker's compensation operations fund. Moneys in the fund may be expended only as provided in s. 20.445 (1) (ra), (rb), and (rp) and (2) (ra) and may not be used for any other purpose of the state.

SB21,3001 Section 3001 . 102.75 (1m) of the statutes, as affected by 2015 Wisconsin Act .... (this act), is amended to read:

SB21,1185,21 102.75 (1m) The moneys collected under subs. (1) and (1g) and under ss. 102.28 (2) and 102.31 (7), together with all accrued interest, shall constitute a separate nonlapsible fund designated as the worker's compensation operations fund. Moneys in the fund may be expended only as provided in s. 20.445 (1) ss. 20.145 (6) (ra), (rb), and (rp) and 20.445 (2) (ra) and may not be used for any other purpose of the state.

SB21,3002 Section 3002. 102.75 (2) of the statutes is amended to read:

SB21,1186,10 102.75 (2) The department shall require that payments for costs and expenses for each fiscal year shall be made on such dates as the department prescribes by each licensed worker's compensation insurance carrier and employer exempted under s. 102.28 (2) (b) from the duty to insure under s. 102.28 (2) (a) to make the payments required under sub. (1) for each fiscal year on such dates as the department prescribes. The department shall also require each licensed worker's compensation insurance carrier to make the payments required under sub. (1g) for each fiscal year on those dates. Each such payment shall be a sum equal to a proportionate share of the annual costs and expenses assessed upon each carrier and employer as estimated by the department. Interest shall accrue on amounts not paid within 30 days after the date prescribed by the department under this subsection at the rate of 1 percent per month. All interest payments received under this subsection shall be deposited in the fund established under s. 102.65.

SB21,3003 Section 3003 . 102.75 (2) of the statutes, as affected by 2015 Wisconsin Act .... (this act), is amended to read:

SB21,1186,24 102.75 (2) The department office shall require each licensed worker's compensation insurance carrier and employer exempted under s. 102.28 (2) (b) from the duty to insure under s. 102.28 (2) (a) to make the payments required under sub. (1) for each fiscal year on such dates as the department office prescribes. The department office shall also require each licensed worker's compensation insurance carrier to make the payments required under sub. (1g) for each fiscal year on those dates. Each such payment shall be a sum equal to a proportionate share of the annual costs and expenses assessed upon each carrier and employer as estimated by the department office. Interest shall accrue on amounts not paid within 30 days after the date prescribed by the department office under this subsection at the rate of 1 percent per month. All interest payments received under this subsection shall be deposited in the fund established under s. 102.65.

SB21,3004 Section 3004. 102.75 (4) of the statutes is amended to read:

SB21,1187,5 102.75 (4) From the appropriation under s. 20.445 (1) 20.145 (6) (ra), the department office shall allocate the amounts that it collects in application fees from employers applying for exemption under s. 102.28 (2) and the annual amount that it collects from employers that have been exempted under s. 102.28 (2) to fund the activities of the department office under s. 102.28 (2) (b) and (c).

SB21,3005 Section 3005. 102.80 (1) (e) of the statutes is amended to read:

SB21,1187,8 102.80 (1) (e) All moneys received by the department office for the uninsured employers fund from any other source.

SB21,3006 Section 3006. 102.80 (1) (f) of the statutes is created to read:

SB21,1187,11 102.80 (1) (f) Amounts transferred to the uninsured employers fund from the appropriation account under s. 20.445 (1) (ra) as provided in s. 102.81 (1) (c).

SB21,3007 Section 3007. 102.80 (1) (f) of the statutes, as created by 2015 Wisconsin Act .... (this act), is amended to read:

SB21,1187,16 102.80 (1) (f) Amounts transferred to the uninsured employers fund from the appropriation account under s. 20.445 (1) 20.145 (6) (ra) as provided in s. 102.81 (1) (c).

SB21,3008 Section 3008. 102.80 (1m) of the statutes is amended to read:

SB21,1187,21 102.80 (1m) The moneys collected or received under sub. (1), together with all accrued interest, shall constitute a separate nonlapsible fund designated as the uninsured employers fund. Moneys in the fund may be expended only as provided in s. 20.445 (1) 20.145 (6) (sm) and may not be used for any other purpose of the state.

SB21,3009 Section 3009. 102.80 (3) (a) of the statutes is amended to read:

SB21,1188,4 102.80 (3) (a) If the cash balance in the uninsured employers fund equals or exceeds $4,000,000, the secretary commissioner shall consult the council on worker's compensation within 45 days after that cash balance equals or exceeds $4,000,000. The secretary may file with the secretary of administration, within Within 15 days after consulting the council on worker's compensation, the commissioner may file with the secretary of administration a certificate attesting that the cash balance in the uninsured employers fund equals or exceeds $4,000,000.

SB21,3010 Section 3010. 102.80 (3) (ag) of the statutes is amended to read:

SB21,1188,18 102.80 (3) (ag) The secretary commissioner shall monitor the cash balance in, and incurred losses to, the uninsured employers fund using generally accepted actuarial principles. If the secretary commissioner determines that the expected ultimate losses to the uninsured employers fund on known claims exceed 85 percent of the cash balance in the uninsured employers fund, the secretary commissioner shall consult with the council on worker's compensation. If the secretary, after consulting with the council on worker's compensation, the commissioner determines that there is a reasonable likelihood that the cash balance in the uninsured employers fund may become inadequate to fund all claims under s. 102.81 (1), the secretary commissioner shall file with the secretary of administration a certificate attesting that the cash balance in the uninsured employer's fund is likely to become inadequate to fund all claims under s. 102.81 (1) and specifying a date after which no new claims under s. 102.81 (1) will be paid.

SB21,3011 Section 3011. 102.80 (3) (am) of the statutes is amended to read:

SB21,1188,25 102.80 (3) (am) If the secretary commissioner files the certificate under par. (a), the department may expend the moneys in the uninsured employers fund office may, beginning on the first day of the first July after the secretary commissioner files that certificate, expend the moneys in the uninsured employers fund to make payments under s. 102.81 (1) to employees of uninsured employers and to obtain reinsurance under s. 102.81 (2).

SB21,3012 Section 3012. 102.80 (3) (b) of the statutes is amended to read:

SB21,1189,4 102.80 (3) (b) If the secretary commissioner does not file the certificate under par. (a), the department office may not expend the moneys in the uninsured employers fund.

SB21,3013 Section 3013. 102.80 (3) (c) of the statutes is amended to read:

SB21,1189,11 102.80 (3) (c) If, after filing the certificate under par. (a), the secretary commissioner files the certificate under par. (ag), the department office may expend the moneys in the uninsured employers fund only to make payments under s. 102.81 (1) to employees of uninsured employers on claims made before the date specified in that the certificate under par. (ag) and to obtain reinsurance under s. 102.81 (2) for the payment of those claims.

SB21,3014 Section 3014. 102.80 (4) (a) (intro.) of the statutes is amended to read:

SB21,1189,17 102.80 (4) (a) (intro.) If an uninsured employer who owes to the department office any amount under s. 102.82 or 102.85 (4) transfers his or her business assets or activities, the transferee is liable for the amounts owed by the uninsured employer under s. 102.82 or 102.85 (4) if the department office determines that all of the following conditions are satisfied:

SB21,3015 Section 3015. 102.80 (4) (b) of the statutes is amended to read:

SB21,1189,22 102.80 (4) (b) The department office may collect from a transferee described in par. (a) an amount owed under s. 102.82 or 102.85 (4) using the procedures specified in ss. 102.83, 102.835, and 102.87 and the preference specified in s. 102.84 in the same manner as the department office may collect from an uninsured employer.

SB21,3016 Section 3016. 102.81 (1) (a) of the statutes is amended to read:

SB21,1190,5 102.81 (1) (a) If an employee of an uninsured employer, other than an employee who is eligible to receive alternative benefits under s. 102.28 (3), suffers an injury for which the uninsured employer is liable under s. 102.03, the department office or the department's office's reinsurer shall pay to or on behalf of the injured employee or to the employee's dependents an amount equal to the compensation owed them by the uninsured employer under this chapter except penalties and interest due under ss. 102.16 (3), 102.18 (1) (b) and (bp), 102.22 (1), 102.35 (3), 102.57, and 102.60.

SB21,3017 Section 3017. 102.81 (1) (b) of the statutes is amended to read:

SB21,1190,11 102.81 (1) (b) The department office shall make the payments required under par. (a) from the uninsured employers fund, except that if the department office has obtained reinsurance under sub. (2) and is unable to make those payments from the uninsured employers fund, the department's office's reinsurer shall make those payments according to the terms of the contract of reinsurance.

SB21,3018 Section 3018. 102.81 (1) (c) of the statutes is created to read:

SB21,1190,19 102.81 (1) (c) 1. The department shall pay a claim under par. (a) in excess of $1,000,000 from the uninsured employers fund in the first instance. If the claim is not covered by excess or stop-loss reinsurance under sub. (2), the secretary of administration shall transfer from the appropriation account under s. 20.445 (1) (ra) to the uninsured employers fund as provided in subds. 2. and 3. an amount equal to the amount by which payments from the uninsured employers fund on the claim are in excess of $1,000,000.

SB21,1191,2 2. Each calendar year the department shall file with the secretary of administration a certificate setting forth the number of claims in excess of $1,000,000 in the preceding year paid from the uninsured employers fund, the payments made from the uninsured employers fund on each such claim in the preceding year, and the total payments made from the uninsured employers fund on all such claims and, based on that information, the secretary of administration shall determine the amount to be transferred under subd. 1. in that calendar year.

SB21,1191,10 3. The maximum amount that the secretary of administration may transfer under subd. 1. in a calendar year is $500,000. If the amount determined under subd. 2. is $500,000 or less, the secretary of administration shall transfer the amount determined under subd. 2. If the amount determined under subd. 2. exceeds $500,000, the secretary of administration shall transfer $500,000 in the calendar year in which the determination is made and, subject to the maximum transfer amount of $500,000 per calendar year, shall transfer that excess in the next calendar year or in subsequent calendar years until that excess is transferred in full.

SB21,3019 Section 3019. 102.81 (1) (c) 1. of the statutes, as created by 2015 Wisconsin Act .... (this act), is amended to read:

SB21,1191,19 102.81 (1) (c) 1. The department office shall pay a claim under par. (a) in excess of $1,000,000 from the uninsured employers fund in the first instance. If the claim is not covered by excess or stop-loss reinsurance under sub. (2), the secretary of administration shall transfer from the appropriation account under s. 20.445 (1) 20.145 (6) (ra) to the uninsured employers fund as provided in subds. 2. and 3. an amount equal to the amount by which payments from the uninsured employers fund on the claim are in excess of $1,000,000.

SB21,3020 Section 3020. 102.81 (1) (c) 2. of the statutes, as created by 2015 Wisconsin Act .... (this act), is amended to read:

SB21,1192,3 102.81 (1) (c) 2. Each calendar year the department office shall file with the secretary of administration a certificate setting forth the number of claims in excess of $1,000,000 in the preceding year paid from the uninsured employers fund, the payments made from the uninsured employers fund on each such claim in the preceding year, and the total payments made from the uninsured employers fund on all such claims and, based on that information, the secretary of administration shall determine the amount to be transferred under subd. 1. in that calendar year.

SB21,3021 Section 3021. 102.81 (2) of the statutes is amended to read:

SB21,1192,17 102.81 (2) The department office may retain an insurance carrier or insurance service organization to process, investigate, and pay claims under this section and may obtain excess or stop-loss reinsurance with an insurance carrier authorized to do business in this state in an amount that the secretary commissioner determines is necessary for the sound operation of the uninsured employers fund. In cases involving disputed claims, the department office may retain an attorney to represent the interests of the uninsured employers fund and to make appearances on behalf of the uninsured employers fund in proceedings under ss. 102.16 to 102.29. Section 20.930 and all provisions of subch. IV of ch. 16, except s. 16.753, do not apply to an attorney hired under this subsection. The charges for the services retained under this subsection shall be paid from the appropriation under s. 20.445 (1) 20.145 (6) (rp). The cost of any reinsurance obtained under this subsection shall be paid from the appropriation under s. 20.445 (1) 20.145 (6) (sm).

SB21,3022 Section 3022. 102.81 (4) (a) of the statutes is amended to read:

SB21,1192,21 102.81 (4) (a) If the employee or dependent begins an action to recover compensation from the employee's employer or a 3rd party liable under s. 102.29, provide to the department office a copy of all papers filed by any party in the action.

SB21,3023 Section 3023. 102.81 (4) (b) (intro.) of the statutes is amended to read:

SB21,1192,25 102.81 (4) (b) (intro.) If the employee or dependent receives compensation from the employee's employer or a 3rd party liable under s. 102.29, pay to the department office the lesser of the following:

SB21,3024 Section 3024. 102.81 (6) (a) of the statutes is amended to read:

SB21,1193,4 102.81 (6) (a) Subject to par. (b), an employee, a dependent of an employee, an uninsured employer, a 3rd party who is liable under s. 102.29, or the department office may enter into an agreement to settle liabilities under this chapter.

SB21,3025 Section 3025. 102.81 (6) (b) of the statutes is amended to read:

SB21,1193,7 102.81 (6) (b) A settlement under par. (a) is void without the department's written approval of the office.

SB21,3026 Section 3026. 102.81 (7) of the statutes is amended to read:

SB21,1193,13 102.81 (7) This section first applies to injuries occurring on the first day of the first July beginning after the day that the secretary commissioner files a certificate under s. 102.80 (3) (a), except that if the secretary commissioner files a certificate under s. 102.80 (3) (ag) this section does not apply to claims filed on or after the date specified in that certificate.

SB21,3027 Section 3027. 102.82 (1) of the statutes is amended to read:

SB21,1193,23 102.82 (1) Except as provided in sub. (2) (ar), an uninsured employer shall reimburse the department office for any payment made under s. 102.81 (1) to or on behalf of an employee of the uninsured employer or to an employee's dependents and for any expenses paid by the department office in administering the claim of the employee or dependents, less amounts repaid by the employee or dependents under s. 102.81 (4) (b). The reimbursement owed under this subsection is due within 30 days after the date on which the department office notifies the uninsured employer that the reimbursement is owed. Interest shall accrue on amounts not paid when due at the rate of 1% 1 percent per month.

SB21,3028 Section 3028. 102.82 (2) (a) (intro.) of the statutes is amended to read:

SB21,1194,2 102.82 (2) (a) (intro.) Except as provided in pars. (ag), (am), and (ar), all uninsured employers shall pay to the department office the greater of the following:

SB21,3029 Section 3029. 102.82 (2) (a) 1. of the statutes is amended to read:

SB21,1194,7 102.82 (2) (a) 1. Twice the amount determined by the department office to equal what the uninsured employer would have paid during periods of illegal nonpayment for worker's compensation insurance in the preceding 3-year period based on the employer's payroll in the preceding 3 years.

SB21,3030 Section 3030. 102.82 (2) (ag) (intro.) of the statutes is amended to read:

SB21,1194,12 102.82 (2) (ag) (intro.) An uninsured employer who is liable to the department office under par. (a) 2 shall pay to the department office, in lieu of the payment required under par. (a) 2., $100 per day for each day that the employer is uninsured if all of the following apply:

SB21,3031 Section 3031. 102.82 (2) (am) of the statutes is amended to read:

SB21,1194,17 102.82 (2) (am) The department office may waive any payment owed under par. (a) by an uninsured employer if the department office determines that the uninsured employer is subject to this chapter only because the uninsured employer has elected to become subject to this chapter under s. 102.05 (2) or 102.28 (2).

SB21,3032 Section 3032. 102.82 (2) (ar) of the statutes is amended to read:

SB21,1194,24 102.82 (2) (ar) The department office may waive any payment owed under par. (a) or (ag) or sub. (1) if the department office determines that the sole reason for the uninsured employer's failure to comply with s. 102.28 (2) is that the uninsured employer was a victim of fraud, misrepresentation, or gross negligence by an insurance agent or insurance broker or by a person whom a reasonable person would believe is an insurance agent or insurance broker.

SB21,3033 Section 3033. 102.82 (2) (c) of the statutes is amended to read:

SB21,1195,4 102.82 (2) (c) The department of justice or, if the department of justice consents, the department of workforce development office may bring an action in circuit court to recover payments and interest owed to the department of workforce development office under this section.

SB21,3034 Section 3034. 102.82 (3) (a) of the statutes is amended to read:

SB21,1195,8 102.82 (3) (a) When an employee dies as a result of an injury for which an uninsured employer is liable under s. 102.03, the uninsured employer shall pay $1,000 to the department office.

SB21,3035 Section 3035. 102.83 (1) (a) 1. of the statutes is amended to read:

SB21,1195,14 102.83 (1) (a) 1. If an uninsured employer or any individual who is found personally liable under sub. (8) fails to pay to the department office any amount owed to the department office under s. 102.82 and no proceeding for review is pending, the department office or any authorized representative may issue a warrant directed to the clerk of circuit court for any county of the state.

SB21,3036 Section 3036. 102.83 (1) (a) 3. of the statutes is amended to read:

SB21,1195,22 102.83 (1) (a) 3. A warrant entered under subd. 2. shall be considered in all respects as a final judgment constituting a perfected lien on the right, title, and interest of the uninsured employer or the individual in all of that person's real and personal property located in the county where the warrant is entered. The lien is effective when the department office issues the warrant under subd. 1. and shall continue until the amount owed, including interest, costs, and other fees to the date of payment, is paid.

SB21,3037 Section 3037. 102.83 (1) (a) 4. of the statutes is amended to read:

SB21,1196,8 102.83 (1) (a) 4. After the warrant is entered in the judgment and lien docket, the department office or any authorized representative may file an execution with the clerk of circuit court for filing by the clerk of circuit court with the sheriff of any county where real or personal property of the uninsured employer or the individual is found, commanding the sheriff to levy upon and sell sufficient real and personal property of the uninsured employer or the individual to pay the amount stated in the warrant in the same manner as upon an execution against property issued upon the judgment of a court of record, and to return the warrant to the department office and pay to it the money collected by virtue of the warrant within 60 days after receipt of the warrant.