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SB673,158 15Section 158. 102.565 (1) of the statutes is amended to read:
SB673,66,916 102.565 (1) When, as a result of exposure in the course of employment over a
17period of time to toxic or hazardous substances or conditions, an employee
18performing work that is subject to this chapter develops any clinically observable
19abnormality or condition that, on competent medical opinion, predisposes or renders
20the employee in any manner differentially susceptible to disability to such an extent
21that it is inadvisable for the employee to continue employment involving that
22exposure, is discharged from or ceases to continue the employment, and suffers wage
23loss by reason of that discharge from, or cessation of, employment, the department
24or the division may allow such sum as the department or the division considers just
25as compensation for that wage loss, not exceeding $13,000. If a nondisabling

1condition may also be caused by toxic or hazardous exposure not related to
2employment and if the employee has a history of that exposure, compensation as
3provided under this section or any other remedy for loss of earning capacity shall not
4be allowed. If the employee is discharged from employment prior to a finding by the
5department or the division that it is inadvisable for the employee to continue in that
6employment and if it is reasonably probable that continued exposure would result
7in disability, the liability of the employer who discharges the employee is primary,
8and the liability of the employer's insurer is secondary, under the same procedure
9and to the same effect as provided by s. 102.62.
SB673,159 10Section 159. 102.565 (2) of the statutes is amended to read:
SB673,66,2411 102.565 (2) Upon application of any employer or employee, the department or
12the division
may direct any employee of the employer or an employee who, in the
13course of his or her employment, has been exposed to toxic or hazardous substances
14or conditions to submit to examination by one or more physicians appointed by the
15department or the division to determine whether the employee has developed any
16abnormality or condition under sub. (1), and the degree of that abnormality or
17condition. The cost of the medical examination shall be borne by the person making
18application. The physician conducting the examination shall submit the results of
19the examination to the department or the division, which shall submit copies of the
20reports to the employer and employee, who shall have an opportunity to rebut the
21reports if a request to submit a rebuttal is made to the department or the division
22within 10 days after the department or the division mails the report to the parties.
23The department or the division shall make its findings as to whether it is inadvisable
24for the employee to continue in his or her employment.
SB673,160 25Section 160. 102.565 (3) of the statutes is amended to read:
SB673,67,4
1102.565 (3) If, after direction by the commission, or any member of the
2commission, the department, the division, or an examiner, an employee refuses to
3submit to an examination or in any way obstructs the examination, the employee's
4right to compensation under this section shall be barred.
SB673,161 5Section 161 . 102.58 of the statutes is renumbered 102.58 (1) and amended to
6read:
SB673,67,147 102.58 (1) If injury is caused by the failure of the employee to use safety devices
8that are provided in accordance with any statute, rule, or order of the department
9of safety and professional services and that are adequately maintained, and the use
10of which is reasonably enforced by the employer, or if injury results from the
11employee's failure to obey any reasonable rule adopted and reasonably enforced by
12the employer for the safety of the employee and of which the employee has notice, the
13compensation and death benefit provided in this chapter shall be reduced by 15
14percent, but the total reduction may not exceed $15,000.
SB673,67,21 15(2) If an employee violates the employer's policy concerning employee drug or
16alcohol use and is injured, and if that violation is causal to the employee's injury, no
17compensation or death benefits shall be payable to the injured employee or a
18dependent of the injured employee and no payment under s. 102.49 (5) (b) or (c) shall
19be payable
. Nothing in this section subsection shall reduce or eliminate an
20employer's liability for incidental compensation under s. 102.42 (1) to (8) or drug
21treatment under s. 102.425.
SB673,162 22Section 162. 102.61 (1g) (c) of the statutes is amended to read:
SB673,68,1523 102.61 (1g) (c) On receiving notice that he or she is eligible to receive vocational
24rehabilitation services under 29 USC 701 to 797a, an employee shall provide the
25employer with a written report from a physician, chiropractor, psychologist, or

1podiatrist stating the employee's permanent work restrictions. Within 60 days after
2receiving that report, the employer shall provide to the employee in writing an offer
3of suitable employment, a statement that the employer has no suitable employment
4for the employee, or a report from a physician, chiropractor, psychologist, or
5podiatrist showing that the permanent work restrictions provided by the employee's
6practitioner are in dispute and documentation showing that the difference in work
7restrictions would materially affect either the employer's ability to provide suitable
8employment or a vocational rehabilitation counselor's ability to recommend a
9rehabilitative training program. If the employer and employee cannot resolve the
10dispute within 30 days after the employee receives the employer's report and
11documentation, the employer or employee may request a hearing before the division
12department to determine the employee's work restrictions. Within 30 days after the
13division department determines the employee's work restrictions, the employer shall
14provide to the employee in writing an offer of suitable employment or a statement
15that the employer has no suitable employment for the employee.
SB673,163 16Section 163. 102.61 (1m) (c) of the statutes is amended to read:
SB673,69,217 102.61 (1m) (c) The employer or insurance carrier shall pay the reasonable cost
18of any services provided for an employee by a private rehabilitation counselor under
19par. (a) and, subject to the conditions and limitations specified in sub. (1r) (a) to (c)
20and by rule, if the private rehabilitation counselor determines that rehabilitative
21training is necessary, the reasonable cost of the rehabilitative training program
22recommended by that counselor, including the cost of tuition, fees, books,
23maintenance, and travel at the same rate as is provided for state officers and
24employees under s. 20.916 (8). Notwithstanding that the department or the division
25may authorize under s. 102.43 (5) (b) a rehabilitative training program that lasts

1longer than 80 weeks, a rehabilitative training program that lasts 80 weeks or less
2is presumed to be reasonable.
SB673,164 3Section 164. 102.61 (2) of the statutes is amended to read:
SB673,69,104 102.61 (2) The division department, the commission, and the courts shall
5determine the rights and liabilities of the parties under this section in like manner
6and with like effect as the division department, the commission, and the courts
7determine other issues under this chapter. A determination under this subsection
8may include a determination based on the evidence regarding the cost or scope of the
9services provided by a private rehabilitation counselor under sub. (1m) (a) or the cost
10or reasonableness of a rehabilitative training program developed under sub. (1m) (a).
SB673,165 11Section 165. 102.62 of the statutes is amended to read:
SB673,70,2 12102.62 Primary and secondary liability; unchangeable. In case of
13liability under s. 102.57 or 102.60, the liability of the employer shall be primary and
14the liability of the insurance carrier shall be secondary. If proceedings are had before
15the division department for the recovery of that liability, the division department
16shall set forth in its award the amount and order of liability as provided in this
17section. Execution shall not be issued against the insurance carrier to satisfy any
18judgment covering that liability until execution has first been issued against the
19employer and has been returned unsatisfied as to any part of that liability. Any
20provision in any insurance policy undertaking to guarantee primary liability or to
21avoid secondary liability for a liability under s. 102.57 or 102.60 is void. If the
22employer has been adjudged bankrupt or has made an assignment for the benefit of
23creditors, if the employer, other than an individual, has gone out of business or has
24been dissolved, or if the employer is a corporation and its charter has been forfeited
25or revoked, the insurer shall be liable for the payment of that liability without

1judgment or execution against the employer, but without altering the primary
2liability of the employer.
SB673,166 3Section 166. 102.64 (1) of the statutes is amended to read:
SB673,70,154 102.64 (1) Upon request of the department of administration, a representative
5of the department of justice shall represent the state in cases involving payment into
6or out of the state treasury under s. 20.865 (1) (fm), (kr), or (ur) or 102.29. The
7department of justice, after giving notice to the department of administration, may
8compromise the amount of those payments but such compromises shall be subject to
9review by the department or the division. If the spouse or domestic partner under
10ch. 770 of the deceased employee compromises his or her claim for a primary death
11benefit, the claim of the children of the employee under s. 102.49 shall be
12compromised on the same proportional basis, subject to approval by the department
13or the division. If the persons entitled to compensation on the basis of total
14dependency under s. 102.51 (1) compromise their claim, payments under s. 102.49
15(5) (a) shall be compromised on the same proportional basis.
SB673,167 16Section 167. 102.64 (2) of the statutes is amended to read:
SB673,71,217 102.64 (2) Upon request of the department of administration, the attorney
18general shall appear on behalf of the state in proceedings upon claims for
19compensation against the state. Except as provided in s. 102.65 (3), the department
20of justice shall represent the interests of the state in proceedings under s. 102.44 (1),
21102.49, 102.59, 102.60, or 102.66. The department of justice may compromise claims
22in those proceedings, but the compromises are subject to review by the department
23or the division. Costs incurred by the department of justice in prosecuting or
24defending any claim for payment into or out of the work injury supplemental benefit
25fund under s. 102.65, including expert witness and witness fees but not including

1attorney fees or attorney travel expenses for services performed under this
2subsection, shall be paid from the work injury supplemental benefit fund.
SB673,168 3Section 168. 102.65 (3) of the statutes is amended to read:
SB673,71,114 102.65 (3) The department of workforce development may retain the
5department of administration to process, investigate, and pay claims under ss.
6102.44 (1), 102.49, 102.59, and 102.66. If retained by the department of workforce
7development, the department of administration may compromise a claim processed
8by that department, but a compromise made by that department is subject to review
9by the department of workforce development or the division. The department of
10workforce development shall pay for the services retained under this subsection from
11the appropriation account under s. 20.445 (1) (t).
SB673,169 12Section 169. 102.66 (1) of the statutes is amended to read:
SB673,72,213 102.66 (1) Subject to any certificate filed under s. 102.65 (4), if there is an
14otherwise meritorious claim for occupational disease, or for a traumatic injury
15described in s. 102.17 (4) in which the date of injury or death or last payment of
16compensation, other than for treatment or burial expenses, is before April 1, 2006,
17and if the claim is barred solely by the statute of limitations under s. 102.17 (4), the
18department or the division may, in lieu of worker's compensation benefits, direct
19payment from the work injury supplemental benefit fund under s. 102.65 of such
20compensation and such medical expenses as would otherwise be due, based on the
21date of injury, to or on behalf of the injured employee. The benefits shall be
22supplemental, to the extent of compensation liability, to any disability or medical
23benefits payable from any group insurance policy whose premium is paid in whole
24or in part by any employer, or under any federal insurance or benefit program

1providing disability or medical benefits. Death benefits payable under any such
2group policy do not limit the benefits payable under this section.
SB673,170 3Section 170. 102.75 (1) of the statutes is amended to read:
SB673,72,184 102.75 (1) The department shall assess upon and collect from each licensed
5worker's compensation insurance carrier and from each employer exempted under
6s. 102.28 (2) (b) or (bm) from the duty to carry insurance under s. 102.28 (2) (a) the
7proportion of total costs and expenses incurred by the council on worker's
8compensation for travel and research and by the department, the division, and the
9commission in the administration of this chapter for the current fiscal year, plus any
10deficiencies in collections and anticipated costs from the previous fiscal year, that the
11total indemnity paid or payable under this chapter by each such carrier and exempt
12employer in worker's compensation cases initially closed during the preceding
13calendar year, other than for increased, double, or treble compensation, bore to the
14total indemnity paid in cases closed the previous calendar year under this chapter
15by all carriers and exempt employers, other than for increased, double, or treble
16compensation. The council on worker's compensation, the division, and the
17commission shall annually certify any costs and expenses for worker's compensation
18activities to the department at such time as the secretary requires.
SB673,171 19Section 171 . 102.75 (1m) of the statutes is amended to read:
SB673,72,2420 102.75 (1m) The moneys collected under subs. (1) and (1g) and under ss. 102.28
21(2) and 102.31 (7), together with all accrued interest, shall constitute a separate
22nonlapsible fund designated as the worker's compensation operations fund. Moneys
23in the fund may be expended only as provided in ss. 20.427 (1) (ra) and 20.445 (1) (ra),
24(rb), (rc), and (rp) and may not be used for any other purpose of the state.
SB673,172 25Section 172 . 102.80 (1) (d) of the statutes is amended to read:
SB673,73,2
1102.80 (1) (d) Amounts collected from employees or dependents of employees
2under s. 102.81 (4) (b) and (c).
SB673,173 3Section 173 . 102.81 (4) (b) (intro.) of the statutes is amended to read:
SB673,73,64 102.81 (4) (b) (intro.) If the employee or dependent receives compensation from
5the employee's employer or a 3rd party liable under s. 102.29, pay to the department
6the lesser of the following:
SB673,174 7Section 174 . 102.81 (4) (b) 2. of the statutes is amended to read:
SB673,73,98 102.81 (4) (b) 2. The amount after attorney fees and costs that the employee
9or dependent received from the employer or 3rd party.
SB673,175 10Section 175 . 102.81 (4) (c) of the statutes is created to read:
SB673,73,1311 102.81 (4) (c) If the employee or dependent receives compensation from a 3rd
12party that is liable under s. 102.29, pay to the department the proceeds as specified
13under s. 102.29 (1) (b).
SB673,176 14Section 176 . 102.81 (5) of the statutes is amended to read:
SB673,73,1615 102.81 (5) The department of justice may bring an action to collect the a
16payment under sub. (4) (b) or (c).
SB673,177 17Section 177 . 102.82 (1) of the statutes is amended to read:
SB673,74,218 102.82 (1) Except as provided in sub. (2) (ar), an uninsured employer shall
19reimburse the department for any payment made under s. 102.81 (1) to or on behalf
20of an employee of the uninsured employer or to an employee's dependents and for any
21expenses paid by the department in administering the claim of the employee or
22dependents, less amounts repaid by the employee or dependents under s. 102.81 (4)
23(b) or (c). The reimbursement owed under this subsection is due within 30 days after
24the date on which the department notifies the uninsured employer that the

1reimbursement is owed. Interest shall accrue on amounts not paid when due at the
2rate of 1 percent per month.
SB673,178 3Section 178 . 146.82 (2) (a) 3m. of the statutes is created to read:
SB673,74,54 146.82 (2) (a) 3m. To the extent the records are necessary to process, adjudicate,
5or review claims under the worker's compensation system or to comply with ch. 102.
SB673,179 6Section 179. 227.43 (1) (bm) of the statutes is repealed.
SB673,180 7Section 180. 227.43 (2) (am) of the statutes is repealed.
SB673,181 8Section 181. 227.43 (3) (bm) of the statutes is repealed.
SB673,182 9Section 182. 227.43 (4) (bm) of the statutes is repealed.
SB673,183 10Section 183 . Nonstatutory provisions.
SB673,74,1511 (1) Worker's compensation insurance; rate approval; notice. The
12commissioner of insurance shall submit to the legislative reference bureau for
13publication in the Wisconsin Administrative Register a notice of the effective date
14of new rates for worker's compensation insurance first approved by the
15commissioner after the effective date of this subsection.
SB673,74,1616 (2) Transfer of worker's compensation adjudicatory functions.
SB673,74,2117 (a) Assets and liabilities. On the effective date of this paragraph, the assets and
18liabilities of the division of hearings and appeals in the department of administration
19that are primarily related to worker's compensation matters, as determined by the
20secretary of administration, shall become the assets and liabilities of the department
21of workforce development.
SB673,75,222 (b) Positions and employees. On the effective date of this paragraph, all
23positions and all incumbent employees holding those positions in the division of
24hearings and appeals in the department of administration performing duties that
25are primarily related to worker's compensation matters, as determined by the

1secretary of administration, are transferred to the department of workforce
2development.
SB673,75,83 (c) Employee status. Employees transferred under par. (b) have all the rights
4and the same status under ch. 230 in the department of workforce development that
5they enjoyed in the division of hearings and appeals in the department of
6administration immediately before the transfer. Notwithstanding s. 230.28 (4), no
7employee so transferred who has attained permanent status in class is required to
8serve a probationary period.
SB673,75,139 (d) Tangible personal property. On the effective date of this paragraph, all
10tangible personal property, including records, of the the division of hearings and
11appeals in the department of administration that is primarily related to worker's
12compensation matters, as determined by the secretary of administration, is
13transferred to the department of workforce development.
SB673,75,2014 (e) Pending matters. Any worker's compensation matter pending with the
15division of hearings and appeals in the department of administration on the effective
16date of this paragraph, as determined by the secretary of administration, is
17transferred to the department of workforce development. All materials submitted
18to or actions taken by the division of hearings and appeals in the department of
19administration with respect to the pending matter are considered as having been
20submitted to or taken by the department of workforce development.
SB673,76,221 (f) Contracts. All contracts entered into by the division of hearings and appeals
22in the department of administration in effect on the effective date of this paragraph
23that are primarily related to worker's compensation matters, as determined by the
24secretary of administration, remain in effect and are transferred to the department
25of workforce development. The department of workforce development shall carry out

1any obligations under those contracts unless modified or rescinded by the
2department of workforce development to the extent allowed under the contract.
SB673,76,123 (g) Rules and orders. All rules promulgated by the division of hearings and
4appeals in the department of administration in effect on the effective date of this
5paragraph that are primarily related to worker's compensation matters, as
6determined by the secretary of administration, remain in effect until their specified
7expiration dates or until amended or repealed by the department of workforce
8development. All orders issued by the division of hearings and appeals in the
9department of administration in effect on the effective date of this paragraph that
10are primarily related to worker's compensation matters, as determined by the
11secretary of administration, remain in effect until their specified expiration dates or
12until modified or rescinded by the department of workforce development.
SB673,76,1613 (3) Position transfer. The authorized FTE positions for the department of
14workforce development are increased by 35.5 SEG positions to be funded from the
15appropriation under s. 20.445 (1) (ra), for performing duties related to conducting
16hearings under ch. 102.
SB673,184 17Section 184 . Fiscal changes.
SB673,76,2118 (1) On the effective date of this subsection, there is transferred from the
19appropriation account under s. 20.445 (1) (t) to the appropriation account under s.
2020.445 (1) (rc) the unencumbered balance of the amount collected under s. 102.75
21(1g).
SB673,76,2522 (2) In the schedule under s. 20.005 (3) for the appropriation to the department
23of workforce development under s. 20.445 (1) (ra), the dollar amount for fiscal year
242020-21 is increased by $275,000 to provide funding for previously authorized
25positions providing services for the worker's compensation division.
SB673,77,5
1(3) In the schedule under s. 20.005 (3) for the appropriation to the division of
2hearings and appeals in the department of administration under s. 20.505 (4) (kp),
3the dollar amount for fiscal year 2020-21 is decreased by $4,800,000 to decrease the
4authorized positions for the division by 35.5 PR positions performing duties related
5to conducting hearings under ch. 102.
SB673,77,106 (4) In the schedule under s. 20.005 (3) for the appropriation to the department
7of workforce development under s. 20.445 (1) (ra), the dollar amount for fiscal year
82020-21 is increased by $9,000 to increase the authorized FTE positions for the
9department by 0.2 SEG position for the performance of services for the worker's
10compensation division.
SB673,185 11Section 185 . Initial applicability.
SB673,77,1412 (1) The treatment of ss. 102.80 (1) (d), 102.81 (4) (b) (intro.) and 2. and (c) and
13(5), and 102.82 (1) first applies to actions filed under s. 102.29 on the effective date
14of this subsection.
SB673,77,1815 (2) The treatment of ss. 102.17 (9), 102.42 (1) and (1p), and 102.44 (7) first
16applies to injuries reported on the effective date of rate changes for worker's
17compensation insurance approved by the commissioner of insurance under s. 626.13
18after the effective date of this subsection.
SB673,186 19Section 186. Effective dates. This act takes effect on the day after
20publication, except as follows:
SB673,78,1221 (1) The treatment of ss. 40.65 (2) (a) and (b) 3. and 4., 102.01 (2) (ad), (ar), and
22(dm), 102.04 (2r) (b), 102.07 (8) (c), 102.11 (1) (am) 1., 102.12, 102.13 (1) (c), (d) 2., and
233., and (f), (2) (a), (3), (4), and (5), 102.14 (title), (1), and (2), 102.15 (1) and (2), 102.16
24(1), (1m) (a), (b), and (c), (2) (a) and (b), (2m) (a) and (b), and (4), 102.17 (1) (a) 1., 2.,
253., and 4., (b), (c) 1., (d) 1., 2., 3., and 4., (e), (f) 1., (g), and (h), (2), (2m), (2s), (7) (b)

1and (c), and (8), 102.175 (2) and (3) (c), 102.18 (1) (b) 1., 2., and 3., (bg) 1., 2., and 3.,
2(bp), (bw), (c), and (e), (2), (3), (4) (c) 3. and (d), (5), and (6), 102.195, 102.22 (1) and
3(2), 102.23 (2), (3), and (5), 102.24 (2), 102.25 (1), 102.26 (2), (3) (b) 1. and 3., and (4),
4102.27 (2) (b), 102.28 (3) (c) and (4) (c), 102.29 (1) (b) (intro.), (c), and (d), 102.30 (7)
5(a), 102.32 (1m) (intro.), (a), and (c), and (d), (5), (6m), and (7), 102.33 (1) and (2) (a),
6(b) (intro.), 1., 2., and 4., (c), and (d) 2., 102.35 (3), 102.42 (1m), (6), and (8), 102.425
7(4m) (a) and (b), 102.43 (5) (b), 102.44 (2) and (6) (b), 102.475 (6), 102.48 (1), (2), and
8(3), 102.49 (3) and (6), 102.51 (3), (4), and (6), 102.55 (3), 102.555 (12) (a), 102.56 (1)
9and (2), 102.565 (1), (2), and (3), 102.61 (1g) (c), (1m) (c), and (2), 102.62, 102.64 (1)
10and (2), 102.65 (3), 102.66 (1), 102.75 (1), and 227.43 (1) (bm), (2) (am), (3) (bm), and
11(4) (bm) and Sections 183 (2) (a ), (d), (e), (f ), and (g) and 184 (3 ) take effect on July
121, 2020.
SB673,78,1313 (2) Section 183 (2 ) (b) and (c) and (3 ) of this act takes effect on July 5, 2020.
SB673,78,1414 (End)
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