AB738,9,2522 16.765 (5) The head of each contracting agency and the boards of directors of
23the University of Wisconsin Hospitals and Clinics Authority, the Fox River
24Navigational System Authority, the Wisconsin Aerospace Authority, the Health
25Insurance Risk-Sharing Plan Authority, the Lower Fox River Remediation

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1Authority, the Catastrophic Care Authority, and the Bradley Center Sports and
2Entertainment Corporation shall be primarily responsible for obtaining compliance
3by any contractor with the nondiscrimination and affirmative action provisions
4prescribed by this section, according to procedures recommended by the department.
5The department shall make recommendations to the contracting agencies and the
6boards of directors of the University of Wisconsin Hospitals and Clinics Authority,
7the Fox River Navigational System Authority, the Wisconsin Aerospace Authority,
8the Health Insurance Risk-Sharing Plan Authority, the Lower Fox River
9Remediation Authority, the Catastrophic Care Authority, and the Bradley Center
10Sports and Entertainment Corporation for improving and making more effective the
11nondiscrimination and affirmative action provisions of contracts. The department
12shall promulgate such rules as may be necessary for the performance of its functions
13under this section.

AB738,10,2416 16.765 (6) The department may receive complaints of alleged violations of the
17nondiscrimination provisions of such contracts. The department shall investigate
18and determine whether a violation of this section has occurred. The department may
19delegate this authority to the contracting agency, the University of Wisconsin
20Hospitals and Clinics Authority, the Fox River Navigational System Authority, the
21Wisconsin Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority,
22the Lower Fox River Remediation Authority, the Catastrophic Care Authority, or the
23Bradley Center Sports and Entertainment Corporation for processing in accordance
24with the department's procedures.

AB738,11,133 16.765 (7) (intro.) When a violation of this section has been determined by the
4department, the contracting agency, the University of Wisconsin Hospitals and
5Clinics Authority, the Fox River Navigational System Authority, the Wisconsin
6Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority, the Lower
7Fox River Remediation Authority, the Catastrophic Care Authority, or the Bradley
8Center Sports and Entertainment Corporation, the contracting agency, the
9University of Wisconsin Hospitals and Clinics Authority, the Fox River Navigational
10System Authority, the Wisconsin Aerospace Authority, the Health Insurance
11Risk-Sharing Plan Authority, the Lower Fox River Remediation Authority, the
12Catastrophic Care Authority, or the Bradley Center Sports and Entertainment
13Corporation shall:

AB738,11,2216 16.765 (7) (d) Direct the violating party to take immediate steps to prevent
17further violations of this section and to report its corrective action to the contracting
18agency, the University of Wisconsin Hospitals and Clinics Authority, the Fox River
19Navigational System Authority, the Wisconsin Aerospace Authority, the Health
20Insurance Risk-Sharing Plan Authority, the Lower Fox River Remediation
21Authority, the Catastrophic Care Authority, or the Bradley Center Sports and
22Entertainment Corporation.

AB738,12,17

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116.765 (8) If further violations of this section are committed during the term
2of the contract, the contracting agency, the Fox River Navigational System Authority,
3the Wisconsin Aerospace Authority, the Health Insurance Risk-Sharing Plan
4Authority, the Lower Fox River Remediation Authority, the Catastrophic Care
5Authority, or the Bradley Center Sports and Entertainment Corporation may permit
6the violating party to complete the contract, after complying with this section, but
7thereafter the contracting agency, the Fox River Navigational System Authority, the
8Wisconsin Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority,
9the Lower Fox River Remediation Authority, the Catastrophic Care Authority, or the
10Bradley Center Sports and Entertainment Corporation shall request the
11department to place the name of the party on the ineligible list for state contracts,
12or the contracting agency, the Fox River Navigational System Authority, the
13Wisconsin Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority,
14the Lower Fox River Remediation Authority, the Catastrophic Care Authority, or the
15Bradley Center Sports and Entertainment Corporation may terminate the contract
16without liability for the uncompleted portion or any materials or services purchased
17or paid for by the contracting party for use in completing the contract.

AB738,13,420 16.85 (2) To furnish engineering, architectural, project management, and other
21building construction services whenever requisitions therefor are presented to the
22department by any agency. The department may deposit moneys received from the
23provision of these services in the account under s. 20.505 (1) (kc) or in the general
24fund as general purpose revenue — earned. In this subsection, "agency" means an
25office, department, independent agency, institution of higher education, association,

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1society, or other body in state government created or authorized to be created by the
2constitution or any law, which is entitled to expend moneys appropriated by law,
3including the legislature and the courts, but not including an authority created in
4subch. II of ch. 114 or subch. III of ch. 149 or in ch. 231, 233, 234, 237, 238, or 279.

AB738,13,217 16.865 (8) Annually in each fiscal year, allocate as a charge to each agency a
8proportionate share of the estimated costs attributable to programs administered by
9the agency to be paid from the appropriation under s. 20.505 (2) (k). The department
10may charge premiums to agencies to finance costs under this subsection and pay the
11costs from the appropriation on an actual basis. The department shall deposit all
12collections under this subsection in the appropriation account under s. 20.505 (2) (k).
13Costs assessed under this subsection may include judgments, investigative and
14adjustment fees, data processing and staff support costs, program administration
15costs, litigation costs, and the cost of insurance contracts under sub. (5). In this
16subsection, "agency" means an office, department, independent agency, institution
17of higher education, association, society, or other body in state government created
18or authorized to be created by the constitution or any law, that is entitled to expend
19moneys appropriated by law, including the legislature and the courts, but not
20including an authority created in subch. II of ch. 114 or subch. III of ch. 149 or in ch.
21231, 232, 233, 234, 235, 237, 238, or 279.

AB738,14,3 220.147 Catastrophic Care Authority. There is appropriated to the
3Catastrophic Care Authority for the following program:

AB738,14,6 4(1) Initial and operating costs. (a) Establishment and operation. As a
5continuing appropriation, the amounts in the schedule for the establishment of the
6Catastrophic Care Authority and for its operating costs.

AB738,14,88 40.02 (54) (k) The Catastrophic Care Authority.

AB738,14,1210 70.11 (41p) Catastrophic Care Authority. All property owned by the
11Catastrophic Care Authority, provided that use of the property is primarily related
12to the purposes of the authority.

AB738,14,1714 71.26 (1) (be) Certain authorities. Income of the University of Wisconsin
15Hospitals and Clinics Authority, of the Health Insurance Risk-Sharing Plan
16Authority, of the Catastrophic Care Authority, and of the Fox River Navigational
17System Authority, and of the Wisconsin Aerospace Authority.

AB738,15,219 77.54 (9a) (a) This state or any agency thereof, the University of Wisconsin
20Hospitals and Clinics Authority, the Wisconsin Aerospace Authority, the Health

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1Insurance Risk-Sharing Plan Authority, the Catastrophic Care Authority, and the
2Fox River Navigational System Authority.

AB738,15,124 100.45 (1) (dm) "State agency" means any office, department, 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 which
7is entitled to expend moneys appropriated by law, including the legislature and the
8courts, the Wisconsin Housing and Economic Development Authority, the Bradley
9Center Sports and Entertainment Corporation, the University of Wisconsin
10Hospitals and Clinics Authority, the Wisconsin Health and Educational Facilities
11Authority, the Wisconsin Aerospace Authority, and the Fox River Navigational
12System Authority, and the Catastrophic Care Authority.

AB738,15,2415 101.177 (1) (d) "State agency" means any office, department, agency,
16institution of higher education, association, society, or other body in state
17government created or authorized to be created by the constitution or any law, that
18is entitled to expend moneys appropriated by law, including the legislature and the
19courts, the Wisconsin Housing and Economic Development Authority, the Bradley
20Center Sports and Entertainment Corporation, the University of Wisconsin
21Hospitals and Clinics Authority, the Wisconsin Aerospace Authority, and the
22Wisconsin Health and Educational Facilities Authority, and the Catastrophic Care
23Authority, but excluding the Health Insurance Risk-Sharing Plan Authority and the
24Lower Fox River Remediation Authority.

AB738,16,123 230.03 (3) "Agency" means any board, commission, committee, council, or
4department in state government or a unit thereof created by the constitution or
5statutes if such board, commission, committee, council, department, unit, or the
6head thereof, is authorized to appoint subordinate staff by the constitution or
7statute, except a legislative or judicial board, commission, committee, council,
8department, or unit thereof or an authority created under subch. II of ch. 114 or
9subch. III of ch. 149 or under ch. 231, 232, 233, 234, 235, 237, 238, or 279. "Agency"
10does not mean any local unit of government or body within one or more local units
11of government that is created by law or by action of one or more local units of
12government.

AB738,16,16 16238.01 Definitions. In this chapter:

AB738,16,17 17(1) "Authority" means the Catastrophic Care Authority.

AB738,16,18 18(2) "Board" means the board of directors of the authority.

AB738,16,20 19(3) "Health benefit purchasing cooperative" means a cooperative under s.
20185.99.

AB738,16,21 21(4) "Small group market" has the meaning given in s. 632.745 (26).

AB738,17,2 22238.05 Creation and organization of authority. (1) There is created a
23public body corporate and politic to be known as the "Catastrophic Care Authority."
24The board of directors of the authority shall consist of the commissioner of insurance,

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1or his or her designee, as a nonvoting member, and the following 13 members, who
2shall serve 4-year terms:

AB738,17,33 (a) One majority party senator appointed by the senate majority leader.

AB738,17,44 (b) One minority party senator appointed by the senate minority leader.

AB738,17,65 (c) One majority party representative to the assembly appointed by the speaker
6of the assembly.

AB738,17,87 (d) One minority party representative to the assembly appointed by the
8assembly minority leader.

AB738,17,109 (e) Nine nominees of the governor, appointed with the advice and consent of the
10senate, consisting of all of the following:

AB738,17,1111 1. One health care provider.

AB738,17,1312 2. One representative of a Wisconsin health insurance company that offers
13coverage in the small group market.

AB738,17,1414 3. One representative of a Wisconsin small employer.

AB738,17,1515 4. One representative of Wisconsin labor unions.

AB738,17,1616 5. One representative of health benefit purchasing cooperatives.

AB738,17,1717 6. Four other members who represent the public interest.

AB738,17,24 18(2) Each member of the board shall hold office until a successor is appointed
19and qualified unless the member vacates or is removed from his or her office. A
20member who serves as a result of holding another office or position vacates his or her
21office as a member when he or she vacates the other office or position. A member who
22ceases to qualify for office vacates his or her office. A vacancy on the board shall be
23filled in the same manner as the original appointment to the board for the remainder
24of the unexpired term, if any.

AB738,18,2

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1(3) Annually, the governor shall appoint one member as chairperson, and the
2members of the board may elect other officers as they consider appropriate.

AB738,18,15 3(4) The board shall appoint an executive director. The executive director shall
4not be a member of the board and shall serve at the pleasure of the board. The
5authority may delegate by resolution to one or more of its members or its executive
6director any powers and duties that it considers proper. The executive director shall
7receive such compensation as may be determined by the board. The executive
8director or other person designated by resolution of the board shall keep a record of
9the proceedings of the authority and shall be custodian of all books, documents, and
10papers filed with the authority, the minute book or journal of the authority, and its
11official seal. The executive director or other person may cause copies to be made of
12all minutes and other records and documents of the authority and may give
13certificates under the official seal of the authority to the effect that such copies are
14true copies, and all persons dealing with the authority may rely upon such
15certificates.

AB738,18,20 16(5) A majority of the members of the board constitutes a quorum for the purpose
17of conducting its business and exercising its powers and for all other purposes,
18notwithstanding the existence of any vacancies. Action may be taken by the board
19upon a vote of a majority of the members present. Meetings of the members of the
20board may be held anywhere within or without the state.

AB738,18,24 21(6) A member of the board may not be compensated for his or her services but
22shall be reimbursed for actual and necessary expenses incurred in the performance
23of his or her duties, including travel expenses, subject to uniform travel schedule
24amounts approved under s. 20.916 (8).

AB738,19,4

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1(7) No cause of action may arise against and no civil liability may be imposed
2upon a member or executive director of the authority for any act or omission in the
3performance of his or her powers and duties under this chapter, unless the person
4asserting liability proves that the act or omission constitutes willful misconduct.

AB738,19,8 5238.10 Powers of authority. (1) Except as restricted under sub. (2), the
6authority shall have all the powers necessary or convenient to carry out the purposes
7and provisions of this chapter. In addition to all other powers granted by this chapter,
8the authority may:

AB738,19,109 (a) Adopt, amend, and repeal bylaws and policies and procedures for the
10regulation of its affairs and the conduct of its business.

AB738,19,1111 (b) Have a seal and alter the seal at pleasure.

AB738,19,1212 (c) Maintain an office.

AB738,19,1313 (d) Sue and be sued.

AB738,19,1514 (e) Accept gifts, grants, loans, or other contributions from private or public
15sources.

AB738,19,1716 (f) Establish the authority's annual budget and monitor the fiscal management
17of the authority.

AB738,19,1918 (g) Execute contracts and other instruments, including contracts for any
19professional services required for the authority.

AB738,19,2120 (h) Employ any officers, agents, and employees that it may require and
21determine their qualifications and compensation.

AB738,19,2222 (i) Procure liability insurance.

AB738,19,23 23(2) The authority may not issue bonds.

AB738,19,25 24238.15 Catastrophic health care reinsurance program. (1) In addition
25to all other duties under this chapter, the authority shall do all of the following:

AB738,20,4

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1(a) Study options and develop recommendations for implementing a
2reinsurance program to provide reinsurance to groups or individuals, or both, in this
3state for catastrophic claims under group or individual, or both, health insurance
4policies.

AB738,20,75 (b) No later than September 15, 2009, submit to the secretary of administration
6a report with its recommendations for implementing a reinsurance program
7described in par. (a).

AB738,20,98 (c) Develop and administer a reinsurance program in accordance with any
9legislation enacted that requires or authorizes the authority to do so.

AB738,20,11 10(2) (a) In developing its recommendations for a reinsurance program under
11sub. (1), the authority shall do all of the following:

AB738,20,1212 1. Develop guidelines for defining high-cost claims and attachment points.

AB738,20,1413 2. Set premiums to be paid for the reinsurance coverage, based on the number
14of covered lives included in the reinsurance pool.

AB738,20,1515 3. Set coinsurance rates for claims paid.

AB738,20,1616 4. Design all other program features.

AB738,20,1717 (b) The authority may do all of the following:

AB738,20,2018 1. Consider the impact of, and make recommendations to the governor on,
19allowing health benefit purchasing cooperatives to participate in a reinsurance
20program implemental under this section.

AB738,20,2421 2. Evaluate the challenges faced by American Indian tribes and bands in this
22state and other sectors of the group health insurance market and make
23recommendations to the governor on proposals to reduce health insurance premiums
24for the tribes and bands and other sectors.

AB738,21,3

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13. Explore other ways to lower health care costs and to increase access to and
2improve the quality of health care, including considering options for comprehensive
3health care reform.

AB738,21,7 4(3) The authority may contract with a vendor to administer any reinsurance
5program implemented under this section, including the performance of such
6responsibilities as estimating reinsurance premiums, paying claims, customer
7service, and day-to-day administration.

AB738,21,19 8238.20 Annual evaluations. Annually, after implementation of any
9reinsurance program under this section, the authority shall contract with an
10independent entity to conduct an evaluation of the program and a financial audit of
11the most recent fiscal year ending before the audit. The program evaluation shall
12include a review of best practices that may impact appropriate use of health care and
13disease management. The authority shall make any necessary adjustments or
14improvements if, as a result of the evaluation or audit, problems or deficiencies are
15determined to exist. After each evaluation and audit, the authority shall explore the
16feasibility of expanding the program to cover more state residents. The authority
17shall submit to the governor a report of the results of each evaluation and audit no
18later than January 1 of the year beginning after the year in which the evaluation and
19audit are conducted.

AB738,22,421 285.59 (1) (b) "State agency" means any office, department, agency, institution
22of higher education, association, society, or other body in state government created
23or authorized to be created by the constitution or any law which that is entitled to
24expend moneys appropriated by law, including the legislature and the courts, the
25Wisconsin Housing and Economic Development Authority, the Bradley Center

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1Sports and Entertainment Corporation, the University of Wisconsin Hospitals and
2Clinics Authority, the Fox River Navigational System Authority, the Wisconsin
3Aerospace Authority, and the Wisconsin Health and Educational Facilities
4Authority, and the Catastrophic Care Authority.