LRB-1412/1
RAC&PJK:mfd:jf
1997 - 1998 LEGISLATURE
February 12, 1997 - Introduced by Senators Adelman, Risser, Wirch, Clausing,
Jauch
and Decker, cosponsored by Representatives Robson, Baldwin, Bock,
Boyle, Plouff, Meyer, Musser, Linton, R. Potter, Reynolds, Baumgart, La
Fave, Morris-Tatum, R. Young, L. Young, Springer
and Notestein. Referred
to Committee on Health, Human Services, Aging, Corrections, Veterans and
Military Affairs.
SB66,1,6 1An Act to amend 40.02 (26) (intro.), 40.02 (28), 40.03 (6) (a) 1., 628.36 (4) (b) 1.,
2628.36 (4) (b) 2. and 628.36 (4) (b) 3.; and to create 20.515 (1) (g), 40.03 (6) (a)
33. and subchapter X of chapter 40 [precedes 40.98] of the statutes; relating to:
4the purchase of health care coverage by private employers through the group
5insurance board, granting rule-making authority and making an
6appropriation.
Analysis by the Legislative Reference Bureau
Under current law, the group insurance board (board), attached to the
department of employe trust funds, is required to contract on behalf of the state for
the purpose of providing health care coverage to state employes. Many other public
employers may also participate in programs offered by the board to provide health
care coverage for their employes.
This bill authorizes the board to enter into contracts on behalf of private
employers for the purpose of providing health care coverage to their employes
through a program offered by the board. In order to participate in this program, a
private employer must provide health care coverage under the program to all of its
employes who have a normal work week of 20 or more hours.

For further information see the state and local 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:
SB66, s. 1 1Section 1. 20.515 (1) (g) of the statutes is created to read:
SB66,2,62 20.515 (1) (g) Benefit and coverage payments; private employers. All moneys
3received from employers, as defined in s. 40.98 (1) (b), and their employes, as defined
4in s. 40.98 (1) (a), who elect to be included in health care coverage plans through a
5program offered by the group insurance board, for the payment of benefits and the
6costs of administering benefits under subch. X of ch. 40.
SB66, s. 2 7Section 2. 40.02 (26) (intro.) of the statutes is amended to read:
SB66,2,158 40.02 (26) (intro.) "Employe" means any person who receives earnings as
9payment for personal services rendered for the benefit of any employer including
10officers of the employer, except as provided in subch. X. An employe is deemed to
11have separated from the service of an employer at the end of the day on which the
12employe last performed services for the employer, or, if later, the day on which the
13employe-employer relationship is terminated because of the expiration or
14termination of leave without pay, sick leave, vacation or other leave of absence. A
15person shall not be considered an employe if a person:
SB66, s. 3 16Section 3. 40.02 (28) of the statutes is amended to read:
SB66,3,317 40.02 (28) "Employer" means the state, including each state agency, any
18county, city, village, town, school district, other governmental unit or
19instrumentality of 2 or more units of government now existing or hereafter created
20within the state and any federated public library system established under s. 43.19
21whose territory lies within a single county with a population of 500,000 or more,

1except as provided under ss. 40.51 (7) and 40.61 (3) and subch. X, or a local exposition
2district created under subch. II of ch. 229. Each employer shall be a separate legal
3jurisdiction for OASDHI purposes.
SB66, s. 4 4Section 4. 40.03 (6) (a) 1. of the statutes is amended to read:
SB66,3,75 40.03 (6) (a) 1. Shall, on behalf of the state, enter into a contract or contracts
6with one or more insurers authorized to transact insurance business in this state for
7the purpose of providing the group insurance plans provided for by this chapter; or.
SB66, s. 5 8Section 5. 40.03 (6) (a) 3. of the statutes is created to read:
SB66,3,129 40.03 (6) (a) 3. May, on behalf of any employer specified under subch. X, enter
10into a contract or contracts with one or more insurers authorized to transact
11insurance business in this state for the purpose of providing the health care coverage
12plans provided under subch. X.
SB66, s. 6 13Section 6. Subchapter X of chapter 40 [precedes 40.98] of the statutes is
14created to read:
SB66,3,1515 Chapter 40
SB66,3,1816 Subchapter X
17 Private employer health
18 Care coverage
SB66,3,19 1940.98 Health care coverage. (1) In this subchapter:
SB66,4,220 (a) "Employe" means any person who receives earnings as payment for
21personal services rendered for the benefit of any employer including officers of the
22employer. An employe is deemed to have separated from the service of an employer
23at the end of the day on which the employe last performed services for the employer,
24or, if later, the day on which the employe-employer relationship is terminated

1because of the expiration or termination of leave without pay, sick leave, vacation or
2other leave of absence. A person shall not be considered an employe if a person:
SB66,4,43 1. Is employed under a contract involving the furnishing of more than personal
4services.
SB66,4,75 2. Is customarily engaged in an independently established trade, business or
6profession providing the same type of services to more than one employer and whose
7services to an employer are not compensated for on a payroll of that employer.
SB66,4,98 3. Is a patient or inmate of a hospital, home or institution and performs services
9in the hospital, home or institution.
SB66,4,1310 (b) "Employer" means any person doing business or operating an organization
11in this state other than the state, including each state agency, and any county, city,
12village, town, school district, other governmental unit or instrumentality of 2 or more
13units of government.
SB66,4,18 14(2) (a) Subject to par. (b), any employer may offer to all of its employes a health
15care coverage plan through a program offered by the group insurance board. The
16department may, by rule, establish eligibility standards or contribution
17requirements for such employes and employers and may, by rule, limit the category
18of employers allowed to be included in any program available under this subchapter.
SB66,4,2119 (b) An employer who participates in a program offered by the group insurance
20board under par. (a) shall provide health care coverage under that program to all of
21its employes who have a normal work week of 20 or more hours.
SB66, s. 7 22Section 7. 628.36 (4) (b) 1. of the statutes is amended to read:
SB66,4,2423 628.36 (4) (b) 1. Assisting the department of employe trust funds in the
24development of health care plans under s. 40.51 (7) and subch. X of ch. 40.
SB66, s. 8 25Section 8. 628.36 (4) (b) 2. of the statutes is amended to read:
SB66,5,3
1628.36 (4) (b) 2. Providing employers and their employes with information
2regarding the availability and nature of health care coverage that may be obtained
3under s. 40.51 (7) and subch. X of ch. 40.
SB66, s. 9 4Section 9. 628.36 (4) (b) 3. of the statutes is amended to read:
SB66,5,75 628.36 (4) (b) 3. Providing information to employers regarding how to proceed
6under s. 40.51 (7) and subch. X of ch. 40 to obtain health care coverage for their
7employes.
SB66,5,88 (End)
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