LRBs0099/4
MES/RAC/JK:wlj:rs
2011 - 2012 LEGISLATURE
SENATE SUBSTITUTE AMENDMENT 1,
TO 2011 SENATE BILL 18
May 12, 2011 - Offered by Committee on Insurance and Housing.
SB18-SSA1,1,8
1An Act to repeal 66.0137 (4m) (a);
to renumber and amend 66.0137 (1) (ae);
2to amend 20.835 (1) (db), 66.0137 (3), 66.0137 (5) (c) 1., 66.0137 (5) (c) 2.,
366.0137 (5) (c) 3. (intro.), 79.01 (2d) and 79.043 (6); and
to create 16.14, 20.505
4(1) (cr), 66.0137 (1) (af), 66.0137 (1) (am), 66.0137 (1) (ap), 66.0137 (1) (c),
566.0137 (5) (c) 1m. and 66.0137 (5) (c) 4. of the statutes;
relating to: requiring
6the payment of health insurance premiums, and establishing a loan program,
7for survivors of a law enforcement officer or fire fighter who dies, or has died,
8in the line of duty and making appropriations.
Analysis by the Legislative Reference Bureau
Subject to a number of limitations, current law requires a city, village, or town
(municipality) that pays health insurance premiums for its employees who are fire
fighters to pay such premiums for the surviving spouse and dependent children of
a fire fighter who dies, or has died, in the line of duty. This general current law
requirement does not apply to a surviving spouse who remarries or reaches the age
of 65, or to a dependent child who reaches the age of 18 and is not a full-time high
school student. Current law does require premium payments to be made for a
dependent child who is a full-time or part-time student in an accredited college or
university until the close of the calendar year in which the individual reaches the age
of 27.
This substitute amendment requires a municipality or county (political
subdivision) that pays health insurance premiums for its employees who are law
enforcement officers to pay such premiums for the surviving spouse and dependent
children of a law enforcement officer who dies, or has died, in the line of duty. In
addition, the substitute amendment requires the state to reimburse political
subdivisions for premiums paid to cover the surviving spouses and dependents of
fallen fire fighters and law enforcement officers that were paid by the political
subdivisions and that were not otherwise required to be paid under an
employment-related benefit provided to the fire fighter or law enforcement officer.
The substitute amendment establishes a process whereby political subdivisions may
seek reimbursement of the payment of premiums from the Department of
Administration (DOA).
The substitute amendment also requires the state to pay health insurance
premiums for the surviving spouse and dependent children of a law enforcement
officer who was employed by the state and who dies, or has died, in the line of duty.
The state is to pay these health insurance premiums only after any sick leave credits
that may be used for the purchase of health insurance have been exhausted.
The substitute amendment further requires DOA to establish a loan program
for surviving spouses of law enforcement officers and fire fighters who have died in
the line of duty. The loan program must provide for the payment of a loan to a
surviving spouse in an amount equal to the salary that would have been paid his or
her deceased spouse had he or she not died in the line of duty. The loan must be
disbursed to coincide with the pay period that applied to the deceased spouse, must
be secured by the proceeds of any life insurance policy that covered the deceased
spouse, and come due when a surviving spouse receives the proceeds from the life
insurance policy that covered his or her deceased spouse. No loan may be made for
any period after the proceeds of a life insurance policy have been disbursed to the
surviving spouse. To qualify for a loan, a surviving spouse must apply for the loan
on a form prepared by DOA; provide all documentation required by DOA to verify
that his or her spouse died in the line of duty; provide all documentation required by
DOA to verify the salary of the deceased spouse; and enter into an agreement with
DOA that any loan must be secured by the proceeds of a life insurance policy that
covered his or her deceased spouse.
Under the substitute amendment, the amounts that DOA disburses for
premiums, reimbursements, and loans for surviving spouses of law enforcement
officers and fire fighters employed by a political subdivision are paid from the county
and municipal aid account (shared revenue), and the total amount of shared revenue
payments is decreased by the amounts disbursed by DOA.
The substitute amendment first applies, retroactively, to a law enforcement
officer or fire fighter who has died in the line of duty before the effective date of the
substitute amendment, but only with respect to the payment of health insurance
premiums that come due on or after the effective date of this substitute amendment.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB18-SSA1,3,4
216.14 Paying health insurance premiums, and establishing a loan
3program, for dependents of law enforcement officers who die in line of duty. 4(1) In this section:
SB18-SSA1,3,85
(a) "Dies in the line of duty" means a death that occurs, or occurred, as a direct
6and proximate result of one or more of the following, sustained by a law enforcement
7officer while he or she was engaged in a line of duty activity, or that arose out of and
8as a result of such an individual's performance of a line of duty activity:
SB18-SSA1,3,99
1. A personal injury.
SB18-SSA1,3,1010
2. The contraction of an infectious disease.
SB18-SSA1,3,1111
3. Exposure to hazardous materials or conditions.
SB18-SSA1,3,1412
(b) "Law enforcement officer" means any person employed by the state for the
13purpose of detecting and preventing crime and enforcing laws and who is authorized
14to make arrests for violations of the laws that the person is employed to enforce.
SB18-SSA1,3,1915
(c) "Line of duty activity" means any employment-related action taken by a law
16enforcement officer that is required or authorized by law, rule, regulation, or
17condition of employment and for which compensation is provided by his or her
18employer or would have been eligible to have been provided by the employer if the
19law enforcement officer had been on duty when he or she took the action in question.
SB18-SSA1,3,2020
(d) "Political subdivision" has the meaning given in s. 66.0137 (1)
(c).
SB18-SSA1,4,8
1(2) (a) Except as provided in pars. (b) to (d), if a law enforcement officer dies
2in the line of duty the department shall pay the premiums for hospital, surgical, and
3other health insurance for the surviving spouse and dependent children of the law
4enforcement officer. The department shall either reimburse the surviving spouse
5and dependent children for the payment of the premiums or shall pay the premiums
6directly to the department of employee trust funds for health care coverage under
7subch. IV of ch. 40, whichever the department considers appropriate. Premiums
8shall be paid from the appropriation under s. 20.505 (1) (cr).
SB18-SSA1,4,109
(b) The department shall pay the premiums for the surviving spouse only until
10the spouse remarries or reaches the age of 65, whichever occurs first.
SB18-SSA1,4,1211
(c) The department shall pay the premiums for a surviving dependent child
12only until he or she reaches the age of 18 unless any of the following applies:
SB18-SSA1,4,1313
1. The individual is a full-time student in a secondary school.
SB18-SSA1,4,1614
2. The individual is a full-time or part-time student in an accredited college
15or university, except that this subdivision does not apply to such an individual after
16the close of the calendar year in which the individual reaches the age of 27.
SB18-SSA1,4,1917
(d) The department shall pay the premiums for the surviving spouse and
18dependent children of the law enforcement officer only after the exhaustion of any
19credits under ss. 40.05 (4) (b) and 40.95 (1).
SB18-SSA1,4,24
20(3) The department shall reimburse any political subdivision for health
21insurance premiums paid by the political subdivision under s. 66.0137 (5) (c) 1. and
221m., provided the political subdivision submits the form and certification under s.
2366.0137 (5) (c) 4. The reimbursement shall be paid from the appropriation under s.
2420.835 (1) (db).
SB18-SSA1,5,16
1(4) The department shall establish a loan program for surviving spouses of law
2enforcement officers who have died in the line of duty and for surviving spouses
3identified in s. 66.0137 (5) (c) 1. or 1m. The loan program shall provide for the
4payment of a loan to a surviving spouse in an amount equal to the salary that would
5have been paid his or her deceased spouse had he or she not died in the line of duty.
6The loan shall be disbursed to coincide with the pay period that applied to the
7deceased spouse and shall be secured by the proceeds of any life insurance policy that
8covered the deceased spouse. Loans made for surviving spouses of law enforcement
9officers shall be paid from the appropriation under s. 20.505 (1) (cr), and loans made
10for surviving spouses identified in s. 66.0137 (5) (c) 1. or 1m. shall be paid from the
11appropriation under s. 20.835 (1) (db). The repayment of loans shall be credited to
12the general fund as general purpose revenue-earned. A loan shall come due when
13a surviving spouse receives the proceeds from the life insurance policy that covered
14his or her deceased spouse. No loan shall be made for any period after the proceeds
15of a life insurance policy have been disbursed to the surviving spouse. To qualify for
16a loan under this subsection, a surviving spouse shall do all of the following:
SB18-SSA1,5,1717
(a) Apply for the loan on a form prepared by the department.
SB18-SSA1,5,2018
(b) Provide all documentation required by the department to verify that his or
19her spouse was a law enforcement officer who died in the line of duty or was an
20individual identified in s. 66.0137 (5) (c) 1. or 1m.
SB18-SSA1,5,2221
(c) Provide all documentation required by the department to verify the salary
22of the deceased spouse.
SB18-SSA1,5,2523
(d) Enter into an agreement with the department that any loan made under
24this subsection shall be secured by the proceeds of a life insurance policy that covered
25his or her deceased spouse.
SB18-SSA1, s. 2
1Section
2. 20.505 (1) (cr) of the statutes is created to read:
SB18-SSA1,6,52
20.505
(1) (cr)
Payment of health insurance premiums and loans for law
3enforcement officers who die in line of duty. A sum sufficient to pay the premiums
4and reimbursements and make loans for surviving spouses of law enforcement
5officers under s. 16.14.
SB18-SSA1, s. 3
6Section
3. 20.835 (1) (db) of the statutes is amended to read:
SB18-SSA1,6,117
20.835
(1) (db)
County and municipal aid account. A sum sufficient to make
8payments to counties, towns, villages, and cities under s. 79.035, less the amount
9paid from the appropriations under pars. (m), (q), and (r)
, and to pay the premiums
10and reimbursements and make loans under s. 16.14 for surviving spouses identified
11in s. 66.0137 (5) (c) 1. or 1m.
SB18-SSA1, s. 4
12Section
4. 66.0137 (1) (ae) of the statutes is renumbered 66.0137 (1) (as) and
13amended to read:
SB18-SSA1,6,1714
66.0137
(1) (as) "Local governmental unit" means a
municipality, county
15political subdivision, school district (as enumerated in s. 67.01 (5)), sewerage district,
16drainage district, and, without limitation because of enumeration, any other political
17subdivision of the state.
SB18-SSA1, s. 5
18Section
5. 66.0137 (1) (af) of the statutes is created to read:
SB18-SSA1,6,2319
66.0137
(1) (af) "Dies in the line of duty" means a death that occurs, or occurred,
20as a direct and proximate result of one or more of the following, sustained by a law
21enforcement officer or fire fighter while he or she was engaged in a line of duty
22activity or that arose out of and as a result of such an individual's performance of a
23line of duty activity:
SB18-SSA1,6,2424
1. A personal injury.
SB18-SSA1,6,2525
2. The contraction of an infectious disease.
SB18-SSA1,7,1
13. Exposure to hazardous materials or conditions.
SB18-SSA1, s. 6
2Section
6. 66.0137 (1) (am) of the statutes is created to read:
SB18-SSA1,7,63
66.0137
(1) (am) "Law enforcement officer" means any person employed by a
4political subdivision for the purpose of detecting and preventing crime and enforcing
5laws or ordinances and who is authorized to make arrests for violations of the laws
6or ordinances that the person is employed to enforce.
SB18-SSA1, s. 7
7Section
7. 66.0137 (1) (ap) of the statutes is created to read:
