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LRB-6073/1
TJD/MED/EHS/KRP:all
2017 - 2018 LEGISLATURE
November 30, 2018 - Introduced by Committee on Assembly Organization.
Referred to Joint Committee on Finance.
AB1072,2,2 1An Act to repeal 49.79 (9) (d) 1., 601.83 (1) (b) and 601.85 (4); to renumber and
2amend
49.79 (9) (d) 2., 108.04 (2) (a) 3. (intro.), 108.04 (2) (a) 3. a. to c. and
3108.04 (2) (b); to amend 20.445 (1) (b), 49.175 (2) (a), 49.175 (2) (c), 106.05 (2)
4(b) (intro.), 106.05 (3) (a), 106.13 (3m) (b) (intro.), 106.18, 106.26 (3) (c) (intro.),
5106.272 (1), 106.273 (3) (a) (intro.), 106.273 (3) (b), 106.275 (1) (a), 108.04 (2) (a)
6(intro.), 108.04 (2) (a) 1., 108.04 (2) (a) 2., 108.04 (2) (bm), 601.83 (1) (a), 601.83
7(1) (g) and 601.83 (1) (h); and to create 20.445 (1) (bz), 20.445 (1) (cg), 20.445
8(1) (dg), 20.445 (1) (dr), 20.445 (1) (e), 20.445 (1) (fg), 20.445 (1) (fm), 20.940,
949.45 (2t), 49.45 (23b), 49.791, 108.04 (2) (b) 1. (intro.), 108.04 (2) (b) 2. to 6.,
10108.04 (2) (bb), 108.04 (2) (bd) and 601.83 (1) (i) of the statutes; relating to:
11federal government waivers and other requests for federal approval; public
12assistance programs; waivers from work search and registration requirements

1for certain unemployment insurance benefit claimants; granting rule-making
2authority; and making an appropriation.
Analysis by the Legislative Reference Bureau
1.
This bill generally provides for legislative oversight of requests for federal
approval. The bill prohibits a state, executive branch agency from submitting a
request to a federal agency for a waiver or renewal, modification, withdrawal,
suspension, or termination of a waiver of federal law or rules or for authorization to
implement a pilot program or demonstration project unless legislation has been
enacted specifically directing the submission of the request. For any legislation
enacted on or after January 1, 2011, that requires submission of a request that has
not yet been submitted, the bill requires the applicable state agency to submit an
implementation plan to JCF containing an expected timeline with an expected
submission date to the federal agency no later than 90 days after the state agency
submits the implementation plan to JCF, for which JCF may grant up to three
90-day extensions under its passive review process, and submit its final proposed
request to JCF for approval.
Once the request has been submitted to the federal agency, the bill requires the
state agency to do all of the following: make biweekly contact with the federal agency
to continue negotiations, submit monthly progress reports to JCF on negotiations
with the federal agency including descriptions of any portions of the request that the
federal agency stated will not be approved, make available on a quarterly basis a
representative of the state agency for JCF briefings or hearings, and submit the
proposed approval as negotiated with the federal agency to JCF for approval or
disapproval before agreeing with the final federal approval. When the federal
agency has approved the request in whole or in part and the request has not been
fully implemented, the state agency must submit an implementation plan to JCF,
submit its final implementation plan to JCF for approval, and make available on a
quarterly basis a representative of the state agency for JCF briefings or hearings.
No later than nine months before the expiration of an approved waiver, pilot
program, or demonstration project, the state agency must notify JCF of the
expiration date and the state agency's intent regarding renewal. If the state agency
intends to renew the waiver, program, or project without substantive changes to it,
the state agency is not required to comply with all of the procedures specified in the
bill for renewal and instead may submit the proposed renewal request for review by
JCF under its passive review process.
The chairpersons of JCF may delegate some of the committee's responsibilities
under the bill to a legislative standing committee of appropriate subject matter
jurisdiction under terms specified by the chairpersons. If JCF determines that the
state agency has not made sufficient progress or is not acting in accordance with the
enacted legislation requiring the submission of the request, JCF may reduce from
moneys allocated for state operations or administrative functions the agency's

appropriation or expenditure authority or change the authorized level of full-time
equivalent positions for the agency related to the program for which the request is
required to be submitted.
2.
This bill requires by statute the Department of Health Services to implement
the BadgerCare Reform waiver as it relates to childless adults as approved by the
federal Department of Health and Human Services effective October 31, 2018. The
2015-17 and 2017-19 biennial budget acts required DHS to submit a waiver request
to the federal DHHS authorizing DHS to take certain actions including imposing
premiums on, requiring a health risk assessment of, and time-limiting eligibility for
recipients of BadgerCare Plus under the childless adults demonstration project
waiver. Effective October 31, 2018, the federal DHHS approved the BadgerCare
Reform waiver amendment and extension with some modifications from the request.
The bill incorporates certain provisions of the federal approval into the statutes.
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:
AB1072,1 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
AB1072,2 1Section 2. 20.445 (1) (b) of the statutes is amended to read:
AB1072,8,22 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
.
AB1072,3 3Section 3. 20.445 (1) (bz) of the statutes is created to read:
AB1072,8,64 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).
AB1072,4 7Section 4. 20.445 (1) (cg) of the statutes is created to read:
AB1072,8,98 20.445 (1) (cg) Technical education equipment grants. The amounts in the
9schedule for the technical education equipment grants under s. 106.275.
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