LRB-3663/2
PJK:lmk:pg
2007 - 2008 LEGISLATURE
January 29, 2008 - Introduced by Representatives Hilgenberg, Jorgensen,
Nelson, Shilling, Gronemus, Zepnick, Musser, Turner, Berceau, Hixson,
Boyle, Sheridan, Garthwaite, Mason, Hraychuck, Fields, Staskunas,
Kreuser, Hebl
and Vruwink, cosponsored by Senators Roessler, Harsdorf,
Taylor, Schultz, Hansen
and Kreitlow. Referred to Committee on Insurance.
AB738,1,8 1An Act to amend 13.172 (1), 13.48 (13) (a), 13.62 (2), 13.95 (intro.), 16.002 (2),
216.004 (4), 16.004 (5), 16.045 (1) (a), 16.41 (4), 16.417 (1) (a), 16.52 (7), 16.528
3(1) (a), 16.53 (2), 16.54 (9) (a) 1., 16.70 (2), 16.765 (1), 16.765 (2), 16.765 (4),
416.765 (5), 16.765 (6), 16.765 (7) (intro.), 16.765 (7) (d), 16.765 (8), 16.85 (2),
516.865 (8), 71.26 (1) (be), 77.54 (9a) (a), 100.45 (1) (dm), 101.177 (1) (d), 230.03
6(3) and 285.59 (1) (b); and to create 20.147, 40.02 (54) (k), 70.11 (41p) and
7chapter 238 of the statutes; relating to: creating a Catastrophic Care
8Authority and making an appropriation.
Analysis by the Legislative Reference Bureau
This bill creates the Catastrophic Care Authority (CCA). An authority is a
public body corporate and politic with a board of directors that is created by state law
but that is not a state agency. The board of directors of CCA consists of the
commissioner of insurance, or the commissioner's designee, as a nonvoting member
and 13 other members who will serve four-year terms, including a majority party
senator and a majority party representative to the assembly, appointed by the senate
majority leader and the speaker of the assembly, respectively, and a minority party
senator and a minority party representative to the assembly, appointed by the senate
minority leader and the assembly minority leader, respectively. Nine other members

are nominated by the governor and appointed with the advice and consent of the
senate and consist of a health care provider and representatives of a health
insurance company, a small employer, Wisconsin labor unions, health benefit
purchasing cooperatives, and the public interest. The board must appoint an
executive director, who may not be a member of the board.
Because CCA is not a state agency, numerous laws that apply to state agencies
do not apply to CCA. However, CCA is treated like a state agency in the following
respects, among others: 1) it is generally subject to the open records and open
meetings laws; 2) it is treated like a state agency for purposes of the law regulating
lobbying; 3) it is subject to state purchasing requirements and must use a competitive
bid or proposal process whenever contracting for services; 4) it is exempt from income
tax, sales and use tax, and property taxes; 5) the Code of Ethics for Public Officials
and Employees covers CCA; 6) it is to be treated as a state agency for all purposes
under the Wisconsin Retirement System; and 7) it is subject to auditing by the
Legislative Audit Bureau.
CCA is unlike a state agency in many other ways, including: 1) it may approve
its own budget without going through the state budgetary process; 2) its employees
are not state employees, are not included in the state system of personnel
management, and are hired outside the state hiring system; and 3) it is not subject
to statutory rule-making procedures, including requirements for legislative review
of proposed rules. Unlike most authorities under current law, CCA may not issue
bonds.
CCA must study options and develop recommendations for implementing a
reinsurance program to provide reinsurance to groups or individuals, or both, in the
state for catastrophic claims under group or individual, or both, health insurance
policies. By September 15, 2009, CCA must submit a report to the secretary of
administration with its recommendations for implementing the reinsurance
program. CCA must develop and administer any reinsurance program for which
legislation is enacted that authorizes or requires CCA to do so. CCA may contract
with a vendor to administer any reinsurance program that is implemented, and must
contract with an independent entity for annual program and financial evaluations
of an implemented reinsurance program. CCA may make recommendations to the
governor on the impact of allowing health benefit purchasing cooperatives to
participate in any implemented reinsurance program and on proposals to reduce
health insurance premiums for American Indian tribes and bands in the state and
other sectors of the group health insurance market. CCA may explore other ways to
lower health care costs, including considering options for comprehensive health care
reform. The bill also appropriates general purpose revenue to CCA for initial and
operating costs.
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:
AB738, s. 1
1Section 1. 13.172 (1) of the statutes, as affected by 2007 Wisconsin Act 20, is
2amended to read:
AB738,3,83 13.172 (1) In this section, "agency" means an office, department, agency,
4institution of higher education, association, society, or other body in state
5government created or authorized to be created by the constitution or any law, that
6is entitled to expend moneys appropriated by law, including the legislature and the
7courts, and any authority created in subch. II of ch. 114 or subch. III of ch. 149 or in
8ch. 231, 233, 234, 238, or 279.
AB738, s. 2 9Section 2. 13.48 (13) (a) of the statutes is amended to read:
AB738,3,2110 13.48 (13) (a) Except as provided in par. (b) or (c), every building, structure or
11facility that is constructed for the benefit of or use of the state, any state agency,
12board, commission or department, the University of Wisconsin Hospitals and Clinics
13Authority, the Fox River Navigational System Authority, the Catastrophic Care
14Authority,
or any local professional baseball park district created under subch. III
15of ch. 229 if the construction is undertaken by the department of administration on
16behalf of the district, shall be in compliance with all applicable state laws, rules,
17codes and regulations but the construction is not subject to the ordinances or
18regulations of the municipality in which the construction takes place except zoning,
19including without limitation because of enumeration ordinances or regulations
20relating to materials used, permits, supervision of construction or installation,
21payment of permit fees, or other restrictions.
AB738, s. 3 22Section 3. 13.62 (2) of the statutes, as affected by 2007 Wisconsin Act 20, is
23amended to read:
AB738,4,324 13.62 (2) "Agency" means any board, commission, department, office, society,
25institution of higher education, council, or committee in the state government, or any

1authority created in subch. II of ch. 114 or subch. III of ch. 149 or in ch. 231, 232, 233,
2234, 237, 238, or 279, except that the term does not include a council or committee
3of the legislature.
AB738, s. 4 4Section 4. 13.95 (intro.) of the statutes, as affected by 2007 Wisconsin Act 20,
5is amended to read:
AB738,4,18 613.95 Legislative fiscal bureau. (intro.) There is created a bureau to be
7known as the "Legislative Fiscal Bureau" headed by a director. The fiscal bureau
8shall be strictly nonpartisan and shall at all times observe the confidential nature
9of the research requests received by it; however, with the prior approval of the
10requester in each instance, the bureau may duplicate the results of its research for
11distribution. Subject to s. 230.35 (4) (a) and (f), the director or the director's
12designated employees shall at all times, with or without notice, have access to all
13state agencies, the University of Wisconsin Hospitals and Clinics Authority, the
14Wisconsin Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority,
15the Lower Fox River Remediation Authority, the Catastrophic Care Authority, and
16the Fox River Navigational System Authority, and to any books, records, or other
17documents maintained by such agencies or authorities and relating to their
18expenditures, revenues, operations, and structure.
AB738, s. 5 19Section 5. 16.002 (2) of the statutes, as affected by 2007 Wisconsin Act 20, is
20amended to read:
AB738,4,2521 16.002 (2) "Departments" means constitutional offices, departments, and
22independent agencies and includes all societies, associations, and other agencies of
23state government for which appropriations are made by law, but not including
24authorities created in subch. II of ch. 114 or subch. III of ch. 149 and in chs. 231, 232,
25233, 234, 235, 237, 238, and 279.
AB738, s. 6
1Section 6. 16.004 (4) of the statutes, as affected by 2007 Wisconsin Act 20, is
2amended to read:
AB738,5,83 16.004 (4) Freedom of access. The secretary and such employees of the
4department as the secretary designates may enter into the offices of state agencies
5and authorities created under subch. II of ch. 114 or subch. III of ch. 149 and under
6chs. 231, 233, 234, 237, 238, and 279, and may examine their books and accounts and
7any other matter that in the secretary's judgment should be examined and may
8interrogate the agency's employees publicly or privately relative thereto.
AB738, s. 7 9Section 7. 16.004 (5) of the statutes, as affected by 2007 Wisconsin Act 20, is
10amended to read:
AB738,5,1511 16.004 (5) Agencies and employees to cooperate. All state agencies and
12authorities created under subch. II of ch. 114 or subch. III of ch. 149 and under chs.
13231, 233, 234, 237, 238, and 279, and their officers and employees, shall cooperate
14with the secretary and shall comply with every request of the secretary relating to
15his or her functions.
AB738, s. 8 16Section 8. 16.045 (1) (a) of the statutes, as affected by 2007 Wisconsin Act 20,
17is amended to read:
AB738,5,2318 16.045 (1) (a) "Agency" means an office, department, independent agency,
19institution of higher education, association, society, or other body in state
20government created or authorized to be created by the constitution or any law, that
21is entitled to expend moneys appropriated by law, including the legislature and the
22courts, but not including an authority created in subch. II of ch. 114 or subch. III of
23ch. 149 or in ch. 231, 232, 233, 234, 235, 237, 238, or 279.
AB738, s. 9 24Section 9. 16.41 (4) of the statutes, as affected by 2007 Wisconsin Act 20, is
25amended to read:
AB738,6,2
116.41 (4) In this section, "authority" means a body created under subch. II of
2ch. 114 or subch. III of ch. 149 or under ch. 231, 233, 234, 237, 238, or 279.
AB738, s. 10 3Section 10. 16.417 (1) (a) of the statutes is amended to read:
AB738,6,94 16.417 (1) (a) "Agency" means an office, department, independent agency,
5institution of higher education, association, society, or other body in state
6government created or authorized to be created by the constitution or any law, that
7is entitled to expend moneys appropriated by law, including the legislature and the
8courts, but not including an authority or the body created under subch. III of ch. 149
9or under ch. 238.
AB738, s. 11 10Section 11. 16.52 (7) of the statutes, as affected by 2007 Wisconsin Act 20, is
11amended to read:
AB738,6,2212 16.52 (7) Petty cash account. Petty cash account. With the approval of the
13secretary, each agency that is authorized to maintain a contingent fund under s.
1420.920 may establish a petty cash account from its contingent fund. The procedure
15for operation and maintenance of petty cash accounts and the character of
16expenditures therefrom shall be prescribed by the secretary. In this subsection,
17"agency" means an office, department, independent agency, institution of higher
18education, association, society, or other body in state government created or
19authorized to be created by the constitution or any law, that is entitled to expend
20moneys appropriated by law, including the legislature and the courts, but not
21including an authority created in subch. II of ch. 114 or subch. III of ch. 149 or in ch.
22231, 233, 234, 237, 238, or 279.
AB738, s. 12 23Section 12. 16.528 (1) (a) of the statutes, as affected by 2007 Wisconsin Act 20,
24is amended to read:
AB738,7,6
116.528 (1) (a) "Agency" means an office, department, independent agency,
2institution of higher education, association, society, or other body in state
3government created or authorized to be created by the constitution or any law, that
4is entitled to expend moneys appropriated by law, including the legislature and the
5courts, but not including an authority created in subch. II of ch. 114 or subch. III of
6ch. 149 or in ch. 231, 233, 234, 237, 238, or 279.
AB738, s. 13 7Section 13. 16.53 (2) of the statutes, as affected by 2007 Wisconsin Act 20, is
8amended to read:
AB738,7,179 16.53 (2) Improper invoices. If an agency receives an improperly completed
10invoice, the agency shall notify the sender of the invoice within 10 working days after
11it receives the invoice of the reason it is improperly completed. In this subsection,
12"agency" means an office, department, independent agency, institution of higher
13education, association, society, or other body in state government created or
14authorized to be created by the constitution or any law, that is entitled to expend
15moneys appropriated by law, including the legislature and the courts, but not
16including an authority created in subch. II of ch. 114 or subch. III of ch. 149 or in ch.
17231, 233, 234, 237, 238, or 279.
AB738, s. 14 18Section 14. 16.54 (9) (a) 1. of the statutes, as affected by 2007 Wisconsin Act
1920
, is amended to read:
AB738,7,2520 16.54 (9) (a) 1. "Agency" means an office, department, independent agency,
21institution of higher education, association, society or other body in state
22government created or authorized to be created by the constitution or any law, which
23is entitled to expend moneys appropriated by law, including the legislature and the
24courts, but not including an authority created in subch. II of ch. 114 or subch. III of
25ch. 149 or in ch. 231, 233, 234, 237, 238, or 279.
AB738, s. 15
1Section 15. 16.70 (2) of the statutes, as affected by 2007 Wisconsin Act 20, is
2amended to read:
AB738,8,43 16.70 (2) "Authority" means a body created under subch. II of ch. 114 or subch.
4III of ch. 149 or under ch. 231, 232, 233, 234, 235, 237, 238, or 279.
AB738, s. 16 5Section 16. 16.765 (1) of the statutes, as affected by 2007 Wisconsin Act 20,
6is amended to read:
AB738,8,177 16.765 (1) Contracting agencies, the University of Wisconsin Hospitals and
8Clinics Authority, the Fox River Navigational System Authority, the Wisconsin
9Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority, the Lower
10Fox River Remediation Authority, the Catastrophic Care Authority, and the Bradley
11Center Sports and Entertainment Corporation shall include in all contracts executed
12by them a provision obligating the contractor not to discriminate against any
13employee or applicant for employment because of age, race, religion, color, handicap,
14sex, physical condition, developmental disability as defined in s. 51.01 (5), sexual
15orientation as defined in s. 111.32 (13m), or national origin and, except with respect
16to sexual orientation, obligating the contractor to take affirmative action to ensure
17equal employment opportunities.
AB738, s. 17 18Section 17. 16.765 (2) of the statutes, as affected by 2007 Wisconsin Act 20,
19is amended to read:
AB738,9,1120 16.765 (2) Contracting agencies, the University of Wisconsin Hospitals and
21Clinics Authority, the Fox River Navigational System Authority, the Wisconsin
22Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority, the Lower
23Fox River Remediation Authority, the Catastrophic Care Authority, and the Bradley
24Center Sports and Entertainment Corporation shall include the following provision
25in every contract executed by them: "In connection with the performance of work

1under this contract, the contractor agrees not to discriminate against any employee
2or applicant for employment because of age, race, religion, color, handicap, sex,
3physical condition, developmental disability as defined in s. 51.01 (5), sexual
4orientation or national origin. This provision shall include, but not be limited to, the
5following: employment, upgrading, demotion or transfer; recruitment or recruitment
6advertising; layoff or termination; rates of pay or other forms of compensation; and
7selection for training, including apprenticeship. Except with respect to sexual
8orientation, the contractor further agrees to take affirmative action to ensure equal
9employment opportunities. The contractor agrees to post in conspicuous places,
10available for employees and applicants for employment, notices to be provided by the
11contracting officer setting forth the provisions of the nondiscrimination clause".
AB738, s. 18 12Section 18. 16.765 (4) of the statutes, as affected by 2007 Wisconsin Act 20,
13is amended to read:
AB738,9,1914 16.765 (4) Contracting agencies, the University of Wisconsin Hospitals and
15Clinics Authority, the Fox River Navigational System Authority, the Wisconsin
16Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority, the Lower
17Fox River Remediation Authority, the Catastrophic Care Authority, and the Bradley
18Center Sports and Entertainment Corporation shall take appropriate action to
19revise the standard government contract forms under this section.
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