Under the bill, DHS must require childless adults demonstration project
recipients who are at least 19 years of age but have not attained the age of 50 to
participate in, document, and report 80 hours per calendar month of community
engagement activities, unless they are exempt or have a temporary exemption for
good cause. Qualifying community engagement activities are specified in the bill and
include working for money, goods, or services, or as a volunteer, and participating in
a program such as the FoodShare employment and training program or Wisconsin
Works. DHS must require a recipient, as a condition of eligibility, to complete a
health risk assessment and, if the recipient's household income exceeds 50 percent
of the federal poverty line, pay a monthly premium of $8 per household with some
limited exceptions. The household premium is reduced if a recipient reports on the
health risk assessment that he or she is not engaging in certain behaviors that
increase health risks or is actively managing certain unhealthy behaviors. DHS
must disenroll a recipient for six months if the recipient does not pay the required
premium or, if the recipient is not exempt, does not participate for 48 aggregate
months in the community engagement activity.
DHS must charge recipients an $8 copayment for nonemergency use of the
emergency department and must comply with other requirements imposed by the
federal DHHS in its waiver approval effective October 31, 2018. The requirements
in the bill must end no sooner than December 31, 2023, and the bill prohibits
withdrawal of the requirements and DHS from requesting withdrawal, suspension,
or termination of the childless adults demonstration project requirements before
that date unless the legislation has been enacted specifically allowing for
withdrawal, suspension, or termination.
The bill requires DHS to implement the childless adults BadgerCare Reform
waiver by no later than November 1, 2019. If DHS is unable to fully implement the
project reforms by November 1, 2019, DHS may request from JCF an extension not
to exceed 90 days in a written submission that includes a report on the progress
toward implementation of the project and the reason an extension is needed, which
JCF will review under its 14-day passive review process. Similar to other waiver
implementation requirements, if JCF determines that DHS has not complied with

the implementation deadline, has not made sufficient progress in implementing the
BadgerCare Reform waiver, or has not complied other requirements under this bill
relating to approved waiver implementation, JCF may reduce from moneys allocated
for state operations or administrative functions DHS's appropriation or expenditure
authority, whichever is applicable, or change the authorized level of full-time
equivalent positions for DHS related to the Medical Assistance program.
3.
This bill incorporates the provisions of chapter DHS 38 of the Wisconsin
Administrative Code into the statutes. 2015 Wisconsin Act 55, the biennial budget
act for the 2015-16 legislative session, required DHS to promulgate rules to develop
and implement a screening, testing, and treatment policy and then to screen and test
for illegal use of a controlled substance and treat for substance abuse able-bodied
adults who seek to participate in the FoodShare program's employment and training
program known as FSET. DHS promulgated chapter DHS 38, Wis. Adm. Code,
regarding substance abuse screening, testing, and treatment for certain department
employment and training programs. The bill incorporates the specifications and
requirements of that DHS rule into the statutes, requires implementation of the
screening, testing, and treatment by October 1, 2019, and requires DHS to follow
requirements in this bill as if the screening, testing, and treatment is an approved
waiver. In summary, the provisions of the rule and the bill require an agency that
is administering FSET to require able-bodied adults who are subject to a work
requirement to participate in FoodShare and who seek to participate in FSET to
fulfill that work requirement to undergo screening for use of a controlled substance
without a prescription, testing for use of a controlled substance in certain
circumstances, and treatment, if applicable, for use of the controlled substance in
order to be eligible to participate in FSET.
4.
2017 Wisconsin Act 138 required the commissioner of insurance to administer
a state-based reinsurance program, the Wisconsin Healthcare Stability Plan
(known as WIHSP), and allowed the commissioner to request a waiver under federal
law to implement the plan. Under current law, WIHSP makes a reinsurance
payment to a health insurance carrier if the claims for an individual who is enrolled
in a health benefit plan with that carrier exceed a threshold amount in a benefit year.
The federal DHHS approved the commissioner's waiver request under specific terms
and conditions dated July 29, 2018. The bill requires the commissioner to administer
WIHSP in accordance with those specific terms and conditions. The bill prohibits the
commissioner from requesting modification, suspension, withdrawal, or termination
of the waiver unless legislation has been enacted directing the modification,
suspension, withdrawal, or termination. The bill requires the commissioner to
complete and submit any reports, provide any information, and participate in any
oversight activities required by the federal DHHS to implement and maintain
WIHSP. The bill sets the payment parameters for WIHSP as specified by the federal
approval for the 2019 benefit year and prohibits the commissioner from changing
those payment parameters for the 2019 benefit year.

5.
This bill prohibits DHS from submitting an amendment to the state's Medical
Assistance plan or implementing a change to the reimbursement rate for or making
a supplemental payment to a provider under the Medical Assistance program
without first submitting the proposed state plan amendment, rate change, or
payment to JCF. If the state plan amendment, rate change, or payment has an
expected fiscal effect of less than $1,000,000 from all revenue sources over a
12-month period following the implementation date of the amendment, rate change,
or payment, then the proposed state plan amendment, rate change, or payment is
reviewed under JCF's 14-day, passive review process. If the expected fiscal effect is
$1,000,000 or more from all revenue sources over the 12-month period, DHS may
submit the proposed state plan amendment, implement the rate change, or make the
payment only upon approval by JCF. DHS is not required, however, to submit a
proposed rate change or supplemental payment to JCF under the bill if explicit
expenditure authority or funding for the specific change or supplemental payment
is included in enacted legislation.
6.
Under current law, the Department of Children and Families is directed to
allocate in each fiscal year specific amounts of money, including federal moneys
received under the Temporary Assistance for Needy Families (TANF) block grant
program, for various public assistance programs (commonly known as the TANF
schedule). Under current law, DCF may reallocate funds that are allocated for one
purpose in the TANF schedule for any other purpose in the TANF schedule if the
secretary of administration approves the reallocation. Also under current law, if the
TANF moneys received from the federal government are less than the amounts
appropriated for the purposes under the TANF schedule, DCF is required to create
a plan for reducing the amounts of moneys allocated under the TANF schedule and
to carry it out if the secretary of administration approves the plan. This bill replaces
the authority of the secretary to approve a reallocation or a plan to reduce the moneys
allocated under the TANF schedule with passive review by the Joint Committee on
Finance.
7.
Under current law, a claimant for unemployment insurance benefits is
generally required to conduct searches for work each week to be eligible for
unemployment benefits and to register for work. Current law provides that a
claimant who is laid off is exempt from these requirements if the claimant reasonably
expects to be reemployed by the former employer and the Department of Workforce
Development verifies that expectation. Administrative rules promulgated by DWD
require DWD to grant a claimant a waiver of the work search and registration
requirements for eight weeks if the claimant reasonably expects to be reemployed
with the claimant's employer within that period and allow an additional four-week
extension of that waiver. The rules also provide additional reasons a claimant may
qualify for a waiver and require claimants for whom the requirements are not waived
to provide verification of having complied with work search and registration
requirements.

This bill eliminates DWD's authority to establish waivers from work search and
registration requirements and codifies the current waivers contained in DWD's
rules. However, the bill allows DWD to modify or eliminate a waiver, or to create
additional waivers, if doing so is necessary to comply with federal law or is
specifically allowed under federal law. The bill also codifies the requirement that a
claimant provide verification of having complied with work search and registration
requirements.
8.
This bill separates a single appropriation to the Department of Workforce
Development for various workforce training programs, commonly referred to as the
Fast Forward program, into a separate appropriation for each program. The bill
appropriates the following amounts for each of the following programs for fiscal year
2018-19:
1. Career and technical education incentive grants — $3,500,000
2. Technical education equipment grants — $500,000
3. Teacher development program grants — $0
4. Apprenticeship programs — $225,000
5. Local youth apprenticeship grants — $2,233,700
6. Employment transit assistance grants — $464,800
7. Youth summer jobs programs in 1st class cities (currently only the city of
Milwaukee) — $422,400
Under the bill, DWD may request that the Joint Committee on Finance transfer
moneys from the Fast Forward appropriation account to the appropriation accounts
for the teacher development program grants and local youth apprenticeship grants
to fund those grant programs.
The bill also converts the Fast Forward appropriation from a continuing
appropriation to an annual appropriation.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB886,1 1Section 1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
2the following amounts for the purposes indicated: - See PDF for table PDF - See PDF for table PDF - See PDF for table PDF
SB886,2 1Section 2. 20.445 (1) (b) of the statutes is amended to read:
SB886,8,22 20.445 (1) (b) Workforce training; programs, grants, and services. As a
3continuing appropriation, the
The amounts in the schedule for the local youth
4apprenticeship grants under s. 106.13 (3m), youth summer jobs programs under s.
5106.18, employment transit assistance grants under s. 106.26,
workforce training
6programs, grants, and services under s. 106.27 (1), (1g), (1j), and (1r), teacher
7development program grants under s. 106.272, career and technical education

1incentive grants under s. 106.273 (3), technical education equipment grants under
2s. 106.275, and apprentice programs under subch. I of ch. 106
.
SB886,3 3Section 3. 20.445 (1) (bz) of the statutes is created to read:
SB886,8,64 20.445 (1) (bz) Career and technical education incentive grants. The amounts
5in the schedule for the career and technical education incentive grants under s.
6106.273 (3).
SB886,4 7Section 4. 20.445 (1) (cg) of the statutes is created to read:
SB886,8,98 20.445 (1) (cg) Technical education equipment grants. The amounts in the
9schedule for the technical education equipment grants under s. 106.275.
SB886,5 10Section 5. 20.445 (1) (dg) of the statutes is created to read:
SB886,8,1211 20.445 (1) (dg) Teacher development program grants. The amounts in the
12schedule for the teacher development program grants under s. 106.272.
SB886,6 13Section 6. 20.445 (1) (dr) of the statutes is created to read:
SB886,8,1514 20.445 (1) (dr) Apprenticeship programs. The amounts in the schedule for the
15apprentice programs under subch. I of ch. 106.
SB886,7 16Section 7. 20.445 (1) (e) of the statutes is created to read:
SB886,8,1817 20.445 (1) (e) Local youth apprenticeship grants. The amounts in the schedule
18for local youth apprenticeship grants under s. 106.13 (3m).
SB886,8 19Section 8. 20.445 (1) (fg) of the statutes is created to read:
SB886,8,2120 20.445 (1) (fg) Employment transit assistance grants. The amounts in the
21schedule for the employment transit assistance grants under s. 106.26.
SB886,9 22Section 9. 20.445 (1) (fm) of the statutes is created to read:
SB886,8,2423 20.445 (1) (fm) Youth summer jobs programs. The amounts in the schedule for
24youth summer jobs programs in 1st class cities under s. 106.18.
SB886,10 25Section 10 . 20.940 of the statutes is created to read:
SB886,9,4
120.940 Legislative authorization and oversight of requests to federal
2government.
(1) Definition. In this section, “state agency” means any office,
3department, or independent agency in the executive branch of state government,
4other than the Board of Regents of the University of Wisconsin System.
SB886,9,10 5(2) Legislative authorization required. A state agency may not submit a
6request to a federal agency for a waiver or a renewal, modification, withdrawal,
7suspension, or termination of a waiver of federal law or rules or for authorization to
8implement a pilot program or demonstration project unless legislation has been
9enacted specifically directing the submission of the request for a waiver, renewal,
10modification, withdrawal, suspension, termination, or authorization.
SB886,9,16 11(3) Legislative oversight of requests to federal agencies. If submission to
12a federal agency of a request for a waiver or renewal, modification, withdrawal,
13suspension, or termination of a waiver of federal law or rules or for authorization to
14implement a pilot program or demonstration project is required in legislation
15enacted on or after January 1, 2011, the state agency that is required to submit the
16request shall do all of the following that apply:
SB886,9,1817 (a) When the request has not been submitted to the applicable federal agency,
18do all of the following:
SB886,9,2519 1. Beginning 60 days after the enactment of the legislation requiring the
20request or March 1, 2019, whichever is later, submit to the joint committee on finance
21an implementation plan describing the state agency's plan for submitting the
22request including an expected timeline for submitting the request in which the
23submission date is no later than 90 days after submission of the implementation plan
24under this subdivision. If the state agency is unable to submit the request by the date
25specified in the implementation plan, the state agency may request from the joint

1committee on finance an extension not to exceed 90 days in a written submission that
2includes a report on the progress toward submission of the request and the reason
3an extension is needed. If the cochairpersons of the joint committee on finance do not
4notify the state agency within 14 working days after the date of the request for an
5extension under this subdivision that the committee has scheduled a meeting for the
6purpose of reviewing the extension request, the extension is considered granted. If,
7within 14 working days after the date of the request for an extension under this
8subdivision, the cochairpersons of the committee notify the state agency that the
9committee has scheduled a meeting for the purpose of reviewing the extension
10request, the state agency may consider the extension granted only upon approval by
11the committee. No more than 3 90-day extensions may be granted under this
12subdivision.
SB886,10,1713 2. When the state agency has finalized its proposed request before submitting
14the request to the federal agency, submit the proposed request to the joint committee
15on finance for approval by the committee. The state agency may submit the proposed
16request to the appropriate federal agency only upon approval by the committee. The
17procedures under s. 13.10 do not apply to this subdivision.
SB886,10,1918 (b) When the request has been submitted to the applicable federal agency but
19has not been denied or approved by that federal agency, do all of the following:
SB886,10,2120 1. Contact no less frequently than biweekly the federal agency considering the
21request to continue negotiations in furtherance of approval of the request.
SB886,11,522 2. Beginning 30 days after the date of submission of the request to the federal
23agency or March 1, 2019, whichever is later, and monthly thereafter, submit to the
24joint committee on finance a progress report on negotiations with the federal agency
25toward approval of the request. The state agency shall request from the federal

1agency a description in writing of any portions of the request that the federal agency
2has stated will not be approved and reasons for not approving. The state agency shall
3include in its monthly report under this subdivision any written description from the
4federal agency regarding any portion of the request that the federal agency has
5stated will not be approved.
SB886,11,136 3. Beginning 90 days after the date of submission of the request to the federal
7agency, or March 1, 2019, whichever is later, and quarterly thereafter, make
8available to the joint committee on finance a representative of the state agency to
9brief the committee or provide testimony at a committee hearing at the committee's
10request. The state agency shall ensure that at least one representative of the state
11agency appearing in person before the committee has sufficient personal knowledge
12of the negotiations and progress toward approval of the request to respond to
13inquiries and requests for information by the committee.
SB886,11,2314 4. Before final approval of the request by the federal agency, submit the
15proposed approval as negotiated with the federal agency to the joint committee on
16finance for approval or disapproval. The joint committee on finance may approve or
17disapprove but may not modify the proposed approval as negotiated with the federal
18agency. The state agency may agree to final approval of the request only upon
19approval by the joint committee on finance. If the joint committee on finance
20disapproves, the state agency shall withdraw the request or renegotiate the request
21with the federal agency and resubmit the proposed approval as renegotiated to the
22joint committee on finance for approval or disapproval. The procedures under s.
2313.10 do not apply to this subdivision.
SB886,12,3
1(c) When the request has been approved in whole or in part by the applicable
2federal agency but has not been fully implemented by the applicable state agency, do
3all of the following:
SB886,12,124 1. Beginning 60 days after the date of approval of any portion of the request by
5the applicable federal agency, or March 1, 2019, whichever is later, submit to the joint
6committee on finance an implementation plan for the approved portions of the
7request including the expected timeline for final implementation of the request in
8accordance with the federal agency's approval. When the state agency submits an
9implementation plan that it considers its final implementation plan, the state
10agency may not implement the approved portions of the request until the joint
11committee on finance approves the final implementation plan. The procedures
12under s. 13.10 do not apply to this subdivision.
SB886,12,1513 2. Beginning 30 days after the date of submission of the implementation plan
14and monthly thereafter, submit to the joint committee on finance a progress report
15on implementation of the approved portions of the request.
SB886,12,2316 3. Beginning 90 days after the date of approval of any portion of the request by
17the federal agency, or March 1, 2019, whichever is later, and quarterly thereafter,
18make available to the joint committee on finance a representative of the state agency
19to brief the committee or provide testimony at a committee hearing at the
20committee's request. The state agency shall ensure that at least one representative
21of the state agency appearing in person before the committee has sufficient personal
22knowledge of the negotiations and progress toward implementation of the approval
23of the request to respond to inquiries and requests for information by the committee.
SB886,13,22 24(4) Requests for renewal. No later than 9 months before the expiration of an
25approved waiver of federal law, pilot program, or demonstration project for which no

1legislation has been enacted specifying that the waiver, program, or project must be
2suspended or terminated, the state agency shall submit a written notice to the joint
3committee on finance of the expiration date and the state agency's intent regarding
4renewal. If the state agency intends to request substantive changes to the waiver,
5program, or project in its request to the federal agency, the state agency shall comply
6with the procedures under sub. (3). If the state agency intends to renew the waiver,
7program, or project without substantive changes, notwithstanding sub. (3) and
8before submitting the renewal request to the federal agency, the state agency shall
9submit a proposed renewal request to the joint committee on finance. If the
10cochairpersons of the joint committee on finance do not notify the state agency within
1114 working days after the date of the submittal of the proposed renewal request
12under this subsection that the committee has scheduled a meeting for the purpose
13of reviewing the proposed renewal request, the state agency may submit the
14proposed renewal request. If, within 14 working days after the date of the submittal
15of the proposed renewal request under this subsection, the cochairpersons of the
16committee notify the state agency that the committee has scheduled a meeting for
17the purpose of reviewing the proposed renewal request, the state agency may submit
18the proposed renewal request only upon approval by the committee. After reviewing
19the proposed renewal request and determining any changes requested are
20substantive, the cochairpersons of the joint committee on finance may require the
21state agency to comply with any of the procedures under sub. (3). The procedures
22under s. 13.10 do not apply to this subsection.
SB886,14,3 23(5) Delegation to standing committee. The cochairpersons of the joint
24committee on finance may delegate to a standing committee of the legislature of
25appropriate subject matter jurisdiction any of the responsibilities of the joint

1committee on finance under sub. (3). The cochairpersons shall specify the terms of
2a delegation under this subsection and shall determine what constitutes an approval
3under a delegation under this subsection.
SB886,14,13 4(6) Funding or position reduction for noncompliance. If the joint committee
5on finance determines that the applicable state agency has not made sufficient
6progress in submitting the request, negotiating with the federal agency, or
7implementing an approved portion of a request or is not acting in accordance with
8the enacted legislation requiring the submission of the request, the joint committee
9on finance may reduce from moneys allocated for state operations or administrative
10functions the state agency's appropriation or expenditure authority, whichever is
11applicable, or change the authorized level of full-time equivalent positions for the
12state agency related to the program for which the request is required to be submitted.
13The procedures under s. 13.10 do not apply to this subsection.
SB886,11 14Section 11. 49.175 (2) (a) of the statutes is amended to read:
SB886,15,215 49.175 (2) (a) The department may not reallocate funds that are allocated
16under a paragraph under sub. (1) for any purpose specified in a paragraph under sub.
17(1) if the secretary of administration approves the reallocation unless the
18department first notifies the joint committee on finance in writing of the proposed
19reallocation. If the cochairpersons of the committee do not notify the department
20within 14 working days after the date of the department's notification that the
21committee has scheduled a meeting to review the proposed reallocation, the
22department may make the proposed reallocation. If, within 14 working days after
23the date of the department's notification, the cochairpersons of the committee notify
24the department that the committee has scheduled a meeting to review the proposed

1reallocation, the department may make the proposed reallocation only upon
2approval of the committee
.
SB886,12 3Section 12 . 49.175 (2) (c) of the statutes is amended to read:
SB886,15,184 49.175 (2) (c) If the amounts of federal block grant moneys that are required
5to be credited to the appropriation accounts under s. 20.437 (2) (mc) and (md) are less
6than the amounts appropriated under s. 20.437 (2) (mc) and (md), the department
7shall submit a plan to the secretary of administration joint committee on finance for
8reducing the amounts of moneys allocated under sub. (1). If the secretary of
9administration approves the plan, the amounts of moneys required to be allocated
10under sub. (1) may be reduced as proposed by the department and
If the
11cochairpersons of the committee do not notify the department within 14 working
12days after the date the department submits the plan that the committee has
13scheduled a meeting to review the proposed reduction plan,
the department shall
14allocate the moneys as specified in the plan. If, within 14 working days after the date
15the department submits the plan, the cochairpersons of the committee notify the
16department that the committee has scheduled a meeting to review the proposed
17reduction plan, the department may allocated the moneys as specified in the plan
18only upon approval of the committee.
SB886,13 19Section 13 . 49.45 (2t) of the statutes is created to read:
SB886,16,1420 49.45 (2t) Submission of state plan amendments and provider payments. (a)
21The department may not submit a Medical Assistance state plan amendment to the
22federal department of health and human services or implement a change to the
23reimbursement rate for or make a supplemental payment to a provider under the
24Medical Assistance program under this subchapter when the amendment, rate
25change, or payment has an expected fiscal effect of less than $1,000,000 from all

1revenue sources over a 12-month period following the implementation date of the
2amendment, rate change, or payment without submitting the proposed state plan
3amendment, rate change, or payment to the joint committee on finance for review.
4If the cochairpersons of the joint committee on finance do not notify the department
5within 14 working days after the date of the submittal under this paragraph that the
6committee has scheduled a meeting for the purpose of reviewing the proposed state
7plan amendment, rate change, or payment, the department may submit the state
8plan amendment, implement the rate change, or make the payment. If, within 14
9working days after the date of the submittal under this paragraph by the
10department, the cochairpersons of the committee notify the department that the
11committee has scheduled a meeting for the purpose of reviewing the proposed state
12plan amendment, rate change, or payment, the department may submit the state
13plan amendment, implement the rate change, or make the payment only upon
14approval by the committee.
SB886,17,215 (b) The department may not submit a Medical Assistance state plan
16amendment to the federal department of health and human services or implement
17a change to the reimbursement rate for or make a supplemental payment to a
18provider under the Medical Assistance program under this subchapter when the
19amendment, rate change, or payment has an expected fiscal effect of $1,000,000 or
20more from all revenue sources over a 12-month period following the implementation
21date of the amendment, rate change, or payment without submitting the proposed
22state plan amendment, rate change, or payment to the joint committee on finance for
23review. The department may submit the proposed state plan amendment,
24implement the rate change, or make the payment only upon approval by the

1committee of the proposed state plan amendment, rate change, or payment
2submitted under this paragraph.
SB886,17,73 (c) Notwithstanding pars. (a) and (b), the department is not required to submit
4a proposed change to a reimbursement rate for or supplemental payment to a
5provider under the Medical Assistance program under this subchapter to the joint
6committee on finance under par. (a) or (b) if explicit expenditure authority or funding
7for the specific change or supplemental payment is included in enacted legislation.
SB886,14 8Section 14 . 49.45 (23b) of the statutes is created to read:
SB886,17,109 49.45 (23b) Childless adults demonstration project reform waiver
10implementation required.
(a) In this subsection:
SB886,17,1111 1. “Community engagement activity” includes any of the following:
SB886,17,1212 a. Work in exchange for money, goods, or services.
SB886,17,1313 b. Unpaid work, such as volunteer work or community service.
SB886,17,1414 c. Self-employment.
SB886,17,1815 d. Participation in a work, job training, or job search program, as approved by
16the department, including the employment and training program under s. 49.79 (9),
17the Wisconsin Works program under ss. 49.141 to 49.161, programs under the federal
18workforce innovation and opportunity act, and tribal work programs.
SB886,17,1919 2. “Exempt individual” means an individual who is any of the following:
SB886,17,2120 a. Receiving temporary or permanent disability benefits from the federal or
21state government or a private source.
SB886,17,2222 b. Determined by the department to be physically or mentally unable to work.
SB886,17,2423 c. Verified as unable to work in a statement from a social worker or other health
24care professional.
SB886,17,2525 d. Experiencing chronic homelessness.
SB886,18,2
1e. Serving as primary caregiver for a person who cannot care for himself or
2herself.
SB886,18,43 f. Receiving or applying for unemployment compensation and complying with
4the work requirements for unemployment compensation.
SB886,18,75 g. Participating regularly in an alcohol or other drug abuse treatment or
6rehabilitation program, except for alcoholics anonymous or narcotics anonymous but
7including cultural interventions specific to American Indian tribes or bands.
SB886,18,108 h. Attending high school at least half time or enrolled in an institution of higher
9education, including vocational programs or high school equivalency programs, at
10least half time.
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