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LRB-5114/1
MED&MIM:all
2019 - 2020 LEGISLATURE
January 8, 2020 - Introduced by Committee on Labor and Regulatory Reform, by
request of Department of Workforce Development. Referred to Committee on
Labor and Regulatory Reform.
SB673,3,2 1An Act to repeal 102.01 (2) (ad), 102.01 (2) (ar), 227.43 (1) (bm), 227.43 (2) (am),
2227.43 (3) (bm) and 227.43 (4) (bm); to renumber and amend 102.17 (4) and
3102.58; to amend 20.445 (1) (ra), 20.445 (1) (sm), 40.65 (2) (a), 40.65 (2) (b) 3.,
440.65 (2) (b) 4., 46.275 (4m), 46.277 (3r), 46.281 (1k), 46.2897 (3), 46.995 (3),
5102.01 (2) (dm), 102.04 (1) (b) 1., 102.04 (1) (b) 2., 102.04 (2m), 102.04 (2r) (b),
6102.07 (8) (c), 102.11 (1) (am) 1., 102.12, 102.13 (1) (c), 102.13 (1) (d) 2., 102.13
7(1) (d) 3., 102.13 (1) (f), 102.13 (2) (a), 102.13 (3), 102.13 (4), 102.13 (5), 102.14
8(title), 102.14 (1), 102.14 (2), 102.15 (1), 102.15 (2), 102.16 (1m) (a), 102.16 (1m)
9(b), 102.16 (1m) (c), 102.16 (2) (a), 102.16 (2) (b), 102.16 (2m) (a), 102.16 (2m)
10(b), 102.16 (4), 102.17 (1) (a) 1., 102.17 (1) (a) 2., 102.17 (1) (a) 3., 102.17 (1) (a)
114., 102.17 (1) (b), 102.17 (1) (c) 1., 102.17 (1) (d) 1., 102.17 (1) (d) 2., 102.17 (1)
12(d) 3., 102.17 (1) (d) 4., 102.17 (1) (e), 102.17 (1) (f) 1., 102.17 (1) (g), 102.17 (1)
13(h), 102.17 (2), 102.17 (2m), 102.17 (2s), 102.17 (7) (b), 102.17 (7) (c), 102.17 (8),
14102.175 (2), 102.175 (3) (c), 102.18 (1) (b) 1., 102.18 (1) (b) 2., 102.18 (1) (b) 3.,

1102.18 (1) (bg) 1., 102.18 (1) (bg) 2., 102.18 (1) (bg) 3., 102.18 (1) (bp), 102.18 (1)
2(bw), 102.18 (1) (c), 102.18 (1) (e), 102.18 (3), 102.18 (4) (c) 3., 102.18 (4) (d),
3102.18 (5), 102.18 (6), 102.195, 102.22 (1), 102.22 (2), 102.23 (2), 102.23 (3),
4102.23 (5), 102.24 (2), 102.25 (1), 102.26 (2), 102.26 (3) (b) 1., 102.26 (3) (b) 3.,
5102.26 (4), 102.27 (2) (b), 102.28 (3) (c), 102.28 (4) (c), 102.29 (1) (b) (intro.),
6102.29 (1) (c), 102.29 (1) (d), 102.29 (6m) (a) 3., 102.30 (7) (a), 102.315 (1) (c),
7102.315 (2), 102.32 (1m) (intro.), 102.32 (1m) (a), 102.32 (1m) (c), 102.32 (1m)
8(d), 102.32 (5), 102.32 (6m), 102.32 (7), 102.33 (1), 102.33 (2) (a), 102.33 (2) (b)
9(intro.), 102.33 (2) (b) 1., 102.33 (2) (b) 2., 102.33 (2) (b) 4., 102.33 (2) (c), 102.33
10(2) (d) 2., 102.35 (3), 102.42 (1), 102.42 (1m), 102.42 (6), 102.42 (8), 102.425 (4m)
11(a), 102.425 (4m) (b), 102.43 (5) (b), 102.44 (2), 102.44 (6) (b), 102.475 (6), 102.48
12(1), 102.48 (2), 102.48 (3), 102.49 (3), 102.49 (5) (b), 102.49 (5) (c), 102.49 (5) (e),
13102.49 (6), 102.51 (3), 102.51 (4), 102.51 (6), 102.55 (3), 102.555 (12) (a), 102.56
14(1), 102.56 (2), 102.565 (1), 102.565 (2), 102.565 (3), 102.61 (1g) (c), 102.61 (1m)
15(c), 102.61 (2), 102.62, 102.64 (1), 102.64 (2), 102.65 (3), 102.66 (1), 102.75 (1),
16102.75 (1m), 102.80 (1) (d), 102.81 (4) (b) (intro.), 102.81 (4) (b) 2., 102.81 (5) and
17102.82 (1); to repeal and recreate 102.16 (1) and 102.18 (2); and to create
1820.445 (1) (rc), 102.04 (2g), 102.13 (2) (am), 102.17 (9), 102.29 (6m) (a) 1m.,
19102.315 (2e), 102.315 (2m), 102.315 (2s), 102.33 (2) (b) 7., 102.42 (1p), 102.44
20(7), 102.49 (5) (cm), 102.81 (4) (c) and 146.82 (2) (a) 3m. of the statutes; relating

1to:
various changes to the worker's compensation law and making an
2appropriation.
Analysis by the Legislative Reference Bureau
This bill makes various changes to the worker's compensation law, as
administered by the Department of Workforce Development and the Division of
Hearings and Appeals in the Department of Administration (DHA).
Payment of benefits; other payments
Liability for public safety officers
This bill makes changes to the conditions of liability for worker's compensation
benefits for a law enforcement officer or a fire fighter (public safety officer) who is
diagnosed with post-traumatic stress disorder.
The bill provides that if a public safety officer is diagnosed with post-traumatic
stress disorder by a licensed psychiatrist or psychologist and the mental injury that
resulted in that diagnosis is not accompanied by a physical injury, that public safety
officer can bring a claim for worker's compensation benefits if the conditions of
liability are proven by a preponderance of the evidence and the mental injury is not
the result of a good-faith employment action by the person's employer. Under the
bill, such an injured public safety employee is not required to demonstrate a
diagnosis based on unusual stress of greater dimensions than the day-to-day
emotional strain and tension experienced by all employees as required under School
District No. 1 v. DILHR
, 62 Wis. 2d 370, 215 N.W.2d 373 (1974).
The bill also limits liability for treatment for a mental injury that is
compensable under the bill's provisions to no more than 32 weeks after the injury is
first reported.
Payments in cases of injuries resulting in death
Current law provides that, in each case of an injury resulting in death leaving
no person dependent for support or leaving one or more persons partially dependent
for support, the employer or insurer must pay into the work injury supplemental
benefit fund (WISBF) the amount of the death benefit otherwise payable. This bill
does the following:
1. Allows such amounts due to be paid in advance of when they would otherwise
be due, including as a single, lump-sum payment. If an employer or insurer makes
an advance or lump-sum payment, the bill requires DWD to give the employer or the
insurer an interest credit, computed as otherwise provided under current law.
Current law requires, in the case of a death leaving no dependents, that the
payments be made in five equal annual installments.
2. Provides that, in the case of a violation of an employer policy against drug
or alcohol use that is causal to an employee's injury resulting in death who leaves no
person dependent for support or leaving one or more persons partially dependent for
support, no payment is required to be made to WISBF. Current law provides that,
in the case of such a violation, then neither the employee nor the employee's
dependents may receive any compensation under the worker's compensation law for

that injury, other than costs for treating the injury, but does not exempt the employer
or insurer from the payment to WISBF.
Furnishing of billing statements
This bill requires a health care provider to furnish to the representative or
agent of a worker's compensation insurer a complete billing statement for treatment
of an injury for which an employee claims compensation upon request. The bill
provides that a health care provider may not charge for the copy of the billing
statement and that if the provider does not comply with the request within 30 days,
the insurer is not liable to the provider for payment for the services that were billed
on the requested statement.
Payment of proceeds of claims against third parties
Current law provides that when an employee sustains a work injury or dies as
a result of a work injury and the employee, the employee's personal representative,
or other person entitled to bring action maintains an action in tort against a third
party for the injury or death, the proceeds of the claim are to be divided pursuant to
a formula detailed under current law. Under that formula, after deducting the
reasonable cost of collection, one-third of the remainder is in all cases to be paid to
the injured employee, personal representative, or other person entitled. Current law
also provides that if an injured employee or dependent receives compensation from
the employee's employer or a third party in such an action and the employee received
payments from DWD due to the employer being an uninsured employer, the
employee or dependent must reimburse DWD for the full amount up to the amount
recovered from the third party.
This bill modifies the latter provision such that if an injured employee or
dependent receives compensation from the employee's employer or a third party in
such an action and the employee received payments from DWD due to the employer
being an uninsured employer, the employee or dependent must reimburse DWD in
accordance with the formula described above.
Coverage; liability
Leased employees
Under current law, employee leasing companies are generally liable for injuries
to their leased employees under the worker's compensation law. This bill provides
that a client of an employee leasing company may instead assume the liability for
leased employees under an employee leasing agreement. The bill also provides that
if a client terminates or otherwise does not provide worker's compensation insurance
coverage for the leased employees, the employee leasing company is liable for
injuries to those leased employees under the worker's compensation law.
Employers subject to worker's compensation law
Under current law, every person who usually employs three or more employees
for services performed in this state is subject to the worker's compensation law. This
bill provides that every person who at any time employs three or more employees for
services performed in this state is subject to the worker's compensation law and
specifies that a person becomes subject to that law on the day on which the person
employs three or more employees for services performed in this state.

Statute of limitations
This bill clarifies that for worker's compensation claims the statute of
limitations applies to an individual's employer, the employer's insurance company,
and any other named party.
Long-term care providers; clarification
The bill makes clarifications regarding individuals who perform services for
persons receiving long-term care benefits under certain long-term care programs
and who do not otherwise have worker's compensation coverage for those services to
confirm that they are considered to be employees, for worker's compensation
purposes, of the entities providing financial management services for the persons
receiving the benefits.
Program administration
Authority to conduct hearings
Under current law, DWD performs various administrative and adjudicatory
functions relating to worker's compensation, except that the adjudicatory functions
of DWD relating to disputed worker's compensation claims are performed by DHA.
This bill transfers the adjudicatory functions of DHA relating to disputed worker's
compensation claims to DWD.
Confidential records; disclosure to certain agencies
Under current law, subject to a number of exceptions, certain records of DWD,
DHA, or the Labor and Industry Review Commission that reveal information about
injured employees are confidential and not subject to disclosure under the public
records law or a subpoena. The bill creates another exception for records requested
by the Department of Health Services, a county department of social services, or a
county department of human services, if the request is limited to the name and
address of the employee who is the subject of the record, the name and address of the
employee's employer, and any financial information about that employee contained
in the record.
Disclosure of records
This bill conforms state law to the exemption from federal medical privacy laws
for administration of worker's compensation claims. The federal privacy regulations
allow a health care provider to disclose without authorization from the patient
protected health information as authorized by and to the extent necessary to comply
with worker's compensation laws.
Other changes
The bill makes various other changes regarding the administration of the
worker's compensation law, including 1) adjustments to appropriations and position
authority; and 2) changes regarding the financing of the worker's compensation
program, including creating a separate appropriation to pay for certain
reimbursements for supplemental benefit payments.

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:
SB673,1 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 - See PDF for table PDF
SB673,2 3Section 2 . 20.445 (1) (ra) of the statutes is amended to read:
SB673,7,44 20.445 (1) (ra) Worker's compensation operations fund; administration. From
5the worker's compensation operations fund, the amounts in the schedule for the
6administration of the worker's compensation program by the department, for
7assistance to the department of justice in investigating and prosecuting fraudulent
8activity related to worker's compensation, for transfer to the uninsured employers
9fund under s. 102.81 (1) (c), and for transfer to the appropriation accounts under par.
10(rp) and s. 20.427 (1) (ra). All moneys received under ss. 102.28 (2) (b) and 102.75
11(1) shall be credited to this appropriation account. From this appropriation, an
12amount not to exceed $5,000 may be expended each fiscal year for payment of
13expenses for travel and research by the council on worker's compensation, an amount
14not to exceed $500,000 may be transferred in each fiscal year to the uninsured

1employers fund under s. 102.81 (1) (c), the amount in the schedule under par. (rp)
2shall be transferred to the appropriation account under par. (rp), and the amount in
3the schedule under s. 20.427 (1) (ra) shall be transferred to the appropriation account
4under s. 20.427 (1) (ra).
SB673,3 5Section 3 . 20.445 (1) (rc) of the statutes is created to read:
SB673,7,106 20.445 (1) (rc) Worker's compensation operations fund; supplemental benefits.
7From the worker's compensation operations fund, the amounts in the schedule for
8providing reimbursement to insurance carriers paying supplemental benefits under
9s. 102.44 (1) (c). All moneys received under s. 102.75 (1g) shall be credited to this
10appropriation account.
SB673,4 11Section 4 . 20.445 (1) (sm) of the statutes is amended to read:
SB673,7,1812 20.445 (1) (sm) Uninsured employers fund; payments. From the uninsured
13employers fund, a sum sufficient to make all moneys received from sources identified
14under s. 102.80 (1m) for the purpose of making
the payments under s. 102.81 (1) and
15to obtain reinsurance under s. 102.81 (2). No moneys may be expended or
16encumbered under this paragraph until the first day of the first July beginning after
17the day that the secretary of workforce development files the certificate under s.
18102.80 (3) (a).
SB673,5 19Section 5. 40.65 (2) (a) of the statutes is amended to read:
SB673,8,920 40.65 (2) (a) This paragraph applies to participants who first apply for benefits
21before May 3, 1988. Any person desiring a benefit under this section must apply to
22the department of workforce development, which department shall determine
23whether the applicant is eligible to receive the benefit and the participant's monthly
24salary. Appeals from the eligibility decision shall follow the procedures under ss.
25102.16 to 102.26. If it is determined that an applicant is eligible, the department of

1workforce development shall notify the department of employee trust funds and
2shall certify the applicant's monthly salary. If at the time of application for benefits
3an applicant is still employed in any capacity by the employer in whose employ the
4disabling injury occurred or disease was contracted, that continued employment
5shall not affect that applicant's right to have his or her eligibility to receive those
6benefits determined in proceedings before the division of hearings and appeals in the
7department of administration
department of workforce development or the labor and
8industry review commission or in proceedings in the courts. The department of
9workforce development may promulgate rules needed to administer this paragraph.
SB673,6 10Section 6. 40.65 (2) (b) 3. of the statutes is amended to read:
SB673,8,1511 40.65 (2) (b) 3. The department shall determine whether or not the applicant
12is eligible for benefits under this section on the basis of the evidence in subd. 2. An
13applicant may appeal a determination under this subdivision to the division of
14hearings and appeals in the department of administration
department of workforce
15development
.
SB673,7 16Section 7. 40.65 (2) (b) 4. of the statutes is amended to read:
SB673,8,1917 40.65 (2) (b) 4. In hearing an appeal under subd. 3., the division of hearings and
18appeals in the department of administration
department of workforce development
19shall follow the procedures under ss. 102.16 to 102.26.
SB673,8 20Section 8 . 46.275 (4m) of the statutes is amended to read:
SB673,9,221 46.275 (4m) Worker's compensation coverage. An individual who is
22performing services for a person receiving long-term care benefits under this section
23on a self-directed basis and who does not otherwise have worker's compensation
24coverage for those services is considered, for purposes of worker's compensation

1coverage,
to be an employee of the entity that is providing financial management
2services for that person.
SB673,9 3Section 9 . 46.277 (3r) of the statutes is amended to read:
SB673,9,94 46.277 (3r) Worker's compensation coverage. An individual who is
5performing services for a person receiving long-term care benefits under this section
6on a self-directed basis and who does not otherwise have worker's compensation
7coverage for those services is considered, for purposes of worker's compensation
8coverage,
to be an employee of the entity that is providing financial management
9services for that person.
SB673,10 10Section 10 . 46.281 (1k) of the statutes is amended to read:
SB673,9,1611 46.281 (1k) Worker's compensation coverage. An individual who is
12performing services for a person receiving the Family Care benefit, or benefits under
13Family Care Partnership, on a self-directed basis and who does not otherwise have
14worker's compensation coverage for those services is considered, for purposes of
15worker's compensation coverage,
to be an employee of the entity that is providing
16financial management services for that person.
SB673,11 17Section 11 . 46.2897 (3) of the statutes is amended to read:
SB673,9,2218 46.2897 (3) Worker's compensation coverage. An individual who is
19performing services for a person participating in the self-directed services option
20and who does not otherwise have worker's compensation coverage for those services
21is considered, for purposes of worker's compensation coverage, to be an employee of
22the entity that is providing financial management services for that person.
SB673,12 23Section 12 . 46.995 (3) of the statutes is amended to read:
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