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2021 - 2022 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO ASSEMBLY BILL 235
April 13, 2021 - Offered by Representatives Anderson, Baldeh, Billings, Bowen,
Brostoff, Cabrera, Conley, Considine, Doyle, Drake, Emerson, Goyke,
Haywood, Hebl, Hesselbein, Hintz, Hong, McGuire, B. Meyers, Milroy,
Moore Omokunde, L. Myers, Neubauer, Ohnstad, Ortiz-Velez, Pope,
Riemer, S. Rodriguez, Shankland, Shelton, Sinicki, Snodgrass, Spreitzer,
Stubbs, Subeck, Vining and Vruwink.
AB235-ASA1,1,7 1An Act to repeal 49.45 (2p) and 49.45 (23); to amend 20.435 (4) (jw), 49.45 (23b)
2(title), 49.45 (23b) (b), 49.45 (23b) (c), 49.45 (23b) (e), 49.471 (4) (a) 4. b. and
349.686 (3) (d); and to create 20.192 (1) (bm), 20.835 (2) (ca), 49.471 (1) (cr),
449.471 (4) (a) 8., 49.471 (4g) and 238.18 of the statutes; relating to: rural
5economic development programs administered by the Wisconsin Economic
6Development Corporation, farm support grants, eligibility expansion under the
7Medical Assistance program, and making an appropriation.
Analysis by the Legislative Reference Bureau
Rural economic development
This bill appropriates $200,000,000 in general purpose revenue for the
Wisconsin Economic Development Corporation to do all of the following:
1. Expend moneys for any economic development program WEDC is
administering as of the date on which the bill becomes law if the expenditure assists
economic development in a rural county.
2. Expend moneys for any economic development program WEDC begins
administering after the date on which the bill becomes law if the expenditure assists

economic development in a rural county. The bill requires passive review by the Joint
Committee on Finance before WEDC first expends moneys under the bill on each
such program and requires WEDC to adopt policies and procedures establishing, to
the extent feasible, matching requirements for any such expenditure.
3. Subject to passive review by JCF, award grants to state agencies, including
other authorities, if WEDC determines that a state agency's expenditure of the grant
moneys will assist economic development in a rural county.
4. Award onetime grants to certain county and regional economic development
organizations serving rural counties for the purpose of creating or expanding
revolving loan funds that promote economic development and entrepreneurial
start-ups in rural counties. The bill additionally authorizes WEDC to award limited
onetime grants to such organizations for the organizations' program operations and
marketing in rural counties.
With respect to WEDC's administration of all of the programs described above,
the bill requires WEDC to make every effort to ensure that underserved communities
in rural counties are prioritized. Additionally, under the bill, WEDC must submit
a report to JCF no later than June 30 of each fiscal year in which WEDC expends
moneys under the bill that describes in detail WEDC's use of those moneys in that
fiscal year.
Farm support grants
The bill also requires the Department of Revenue to provide grants to farmers.
The total amount of the grants is $100,000,000. Under the bill, a farmer is eligible
for a grant if the farmer's gross sales of farm products for 2019 exceeds $35,000 but
not does exceed $5,000,000 and the farmer has experienced financial hardship as a
result of the COVID-19 pandemic. The bill directs DOR to consult with the
Department of Agriculture, Trade and Consumer Protection in providing the grants.
Eligibility expansion under the Medical Assistance program
BadgerCare Plus and BadgerCare Plus Core are programs under the state's
Medical Assistance program, which provides health services to individuals who have
limited financial resources. The federal Patient Protection and Affordable Care Act
allows a state to receive an enhanced federal medical assistance percentage payment
for providing benefits to certain individuals through a state's Medical Assistance
program. This bill changes the family income eligibility level to up to 133 percent
of the federal poverty line for parents and caretaker relatives under BadgerCare Plus
and for childless adults currently covered under BadgerCare Plus Core and who are
incorporated into BadgerCare Plus in this bill. The bill requires the Department of
Health Services to comply with all federal requirements and to request any
amendment to the state Medical Assistance plan, waiver of Medicaid law, or other
federal approval necessary to qualify for the highest available enhanced federal
medical assistance percentage for childless adults under the BadgerCare Plus
program.
Under current law, certain parents and caretaker relatives with incomes of not
more than 100 percent of the federal poverty line, before a 5 percent income disregard
is applied, are eligible for BadgerCare Plus benefits. Under current law, childless
adults who 1) are under age 65; 2) have family incomes that do not exceed 100 percent

of the federal poverty line, before the 5 percent income disregard is applied; and 3)
are not otherwise eligible for Medical Assistance, including BadgerCare Plus, are
eligible for benefits under BadgerCare Plus Core. The bill eliminates the childless
adults demonstration project, known as BadgerCare Plus Core, as a separate
program.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB235-ASA1,1 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
AB235-ASA1,2 3Section 2 . 20.192 (1) (bm) of the statutes is created to read:
AB235-ASA1,3,64 20.192 (1) (bm) Rural economic development. The amounts in the schedule for
5rural economic development programs and grants to authorities and state agencies
6under s. 238.18.
AB235-ASA1,3 7Section 3 . 20.435 (4) (jw) of the statutes is amended to read:
AB235-ASA1,4,58 20.435 (4) (jw) BadgerCare Plus and hospital assessment. All moneys received
9from payment of enrollment fees under the program under s. 49.45 (23), all
moneys
10transferred under s. 50.38 (9), all moneys transferred from the appropriation account

1under par. (jz), and 10 percent of all moneys received from penalty assessments
2under s. 49.471 (9) (c), for administration of the program under s. 49.45 (23), to
3provide a portion of the state share of administrative costs for the BadgerCare Plus
4Medical Assistance program under s. 49.471, and for administration of the hospital
5assessment under s. 50.38.
AB235-ASA1,4 6Section 4. 20.835 (2) (ca) of the statutes is created to read:
AB235-ASA1,4,87 20.835 (2) (ca) Farm support grants. The amounts in the schedule to make the
8farm support grants under section 9137 (1 ) of 2021 Wisconsin Act .... (this act).
AB235-ASA1,5 9Section 5 . 49.45 (2p) of the statutes is repealed.
AB235-ASA1,6 10Section 6 . 49.45 (23) of the statutes is repealed.
AB235-ASA1,7 11Section 7 . 49.45 (23b) (title) of the statutes is amended to read:
AB235-ASA1,4,1312 49.45 (23b) (title) Childless adults demonstration project reform waiver
13implementation required.
AB235-ASA1,8 14Section 8 . 49.45 (23b) (b) of the statutes is amended to read:
AB235-ASA1,4,1815 49.45 (23b) (b) Beginning as soon as practicable after October 31, 2018, and
16ending no sooner than December 31, 2023, the department shall do all of the
17following with regard to the childless adults demonstration project under sub. (23)
18s. 49.471 (4) (a) 8.:
AB235-ASA1,4,2419 1. Require in each month persons, except exempt individuals, who are eligible
20to receive Medical Assistance under sub. (23) s. 49.471 (4) (a) 8. and who are at least
2119 years of age but have not attained the age of 50 to participate in, document, and
22report 80 hours per calendar month of community engagement activities. The
23department, after finding good cause, may grant a temporary exemption from the
24requirement under this subdivision upon request of a Medical Assistance recipient.
AB235-ASA1,5,3
12. Require persons with incomes of at least 50 percent of the poverty line to pay
2premiums in accordance with par. (c) as a condition of eligibility for Medical
3Assistance under sub. (23) s. 49.471 (4) (a) 8.
AB235-ASA1,5,54 3. Require as a condition of eligibility for Medical Assistance under sub. (23)
5s. 49.471 (4) (a) 8. completion of a health risk assessment.
AB235-ASA1,5,86 4. Charge recipients of Medical Assistance under sub. (23) s. 49.471 (4) (a) 8.
7an $8 copayment for nonemergency use of the emergency department in accordance
8with 42 USC 1396o-1 (e) (1) and 42 CFR 447.54.
AB235-ASA1,5,139 5. Disenroll from Medical Assistance under sub. (23) s. 49.471 (4) (a) 8. for 6
10months any individual who does not pay a required premium under subd. 2. and any
11individual who is required under subd. 1. to participate in a community engagement
12activity but who does not participate for 48 aggregate months in the community
13engagement activity.
AB235-ASA1,9 14Section 9 . 49.45 (23b) (c) of the statutes is amended to read:
AB235-ASA1,5,2015 49.45 (23b) (c) 1. Persons who are eligible for the demonstration project under
16sub. (23) s. 49.471 (4) (a) 8. and who have monthly household income that exceeds
1750 percent of the poverty line shall pay a monthly premium amount of $8 per
18household. A person who is eligible to receive an item or service furnished by an
19Indian health care provider is exempt from the premium requirement under this
20subdivision.
AB235-ASA1,6,221 2. The department may disenroll under par. (b) 5. a person for nonpayment of
22a required monthly premium only at annual eligibility redetermination after
23providing notice and reasonable opportunity for the person to pay. If a person who
24is disenrolled for nonpayment of premiums pays all owed premiums or becomes

1exempt from payment of premiums, he or she may reenroll in Medical Assistance
2under sub. (23) s. 49.471 (4) (a) 8.
AB235-ASA1,6,63 3. The department shall reduce the amount of the required household premium
4by up to half for a recipient of Medical Assistance under sub. (23) s. 49.471 (4) (a) 8.
5who does not engage in certain behaviors that increase health risks or who attests
6to actively managing certain unhealthy behaviors.
AB235-ASA1,10 7Section 10 . 49.45 (23b) (e) of the statutes is amended to read:
AB235-ASA1,6,128 49.45 (23b) (e) Before December 31, 2023, the demonstration project
9requirements under this subsection may not be withdrawn and the department may
10not request from the federal government withdrawal, suspension, or termination of
11the demonstration project requirements under this subsection unless legislation has
12been enacted specifically allowing for the withdrawal, suspension, or termination.
AB235-ASA1,11 13Section 11 . 49.471 (1) (cr) of the statutes is created to read:
AB235-ASA1,6,1514 49.471 (1) (cr) “Enhanced federal medical assistance percentage" means a
15federal medical assistance percentage described under 42 USC 1396d (y) or (z).
AB235-ASA1,12 16Section 12 . 49.471 (4) (a) 4. b. of the statutes is amended to read:
AB235-ASA1,6,1917 49.471 (4) (a) 4. b. The individual's family income does not exceed 100 133
18percent of the poverty line before application of the 5 percent income disregard under
1942 CFR 435.603 (d)
.
AB235-ASA1,13 20Section 13 . 49.471 (4) (a) 8. of the statutes is created to read:
AB235-ASA1,6,2121 49.471 (4) (a) 8. An individual who meets all of the following criteria:
AB235-ASA1,6,2222 a. The individual is an adult under the age of 65.
AB235-ASA1,6,2423 b. The individual has a family income that does not exceed 133 percent of the
24poverty line, except as provided in sub. (4g).
AB235-ASA1,7,2
1c. The individual is not otherwise eligible for the Medical Assistance program
2under this subchapter or the Medicare program under 42 USC 1395 et seq.
AB235-ASA1,14 3Section 14 . 49.471 (4g) of the statutes is created to read:
AB235-ASA1,7,134 49.471 (4g) Medicaid expansion; federal medical assistance percentage. For
5services provided to individuals described under sub. (4) (a) 8., the department shall
6comply with all federal requirements to qualify for the highest available enhanced
7federal medical assistance percentage. The department shall submit any
8amendment to the state medical assistance plan, request for a waiver of federal
9Medicaid law, or other approval request required by the federal government to
10provide services to the individuals described under sub. (4) (a) 8. and qualify for the
11highest available enhanced federal medical assistance percentage. Sections 20.940
12and 49.45 (2t) do not apply to a submission to the federal government under this
13subsection.
AB235-ASA1,15 14Section 15 . 49.686 (3) (d) of the statutes is amended to read:
AB235-ASA1,7,2015 49.686 (3) (d) Has applied for coverage under and has been denied eligibility
16for medical assistance within 12 months prior to application for reimbursement
17under sub. (2). This paragraph does not apply to an individual who is eligible for
18benefits under the demonstration project for childless adults under s. 49.45 (23) or
19to an individual
who is eligible for benefits under BadgerCare Plus under s. 49.471
20(4) (a) 8. or (11).
AB235-ASA1,16 21Section 16 . 238.18 of the statutes is created to read:
AB235-ASA1,7,22 22238.18 Rural economic development. (1) Definition. In this section:
AB235-ASA1,8,223 (a) “State agency" means an office, department, agency, institution of higher
24education, association, society, or other body in state government created or
25authorized to be created by the constitution or any law that is entitled to expend

1moneys appropriated by law, including any authority created in subch. II of ch. 114
2or in ch. 231, 233, 234, or 279.
AB235-ASA1,8,43 (b) “Rural county” means a county with a population density of less than 155
4residents per square mile.
AB235-ASA1,8,6 5(2) Economic development programs benefiting rural counties. From the
6appropriation under under s. 20.192 (1) (bm), the corporation may do the following:
AB235-ASA1,8,97 (a) Expend moneys for any economic development program the corporation is
8administering on the effective date of this paragraph .... [LRB inserts date], if that
9expenditure assists economic development in a rural county.
AB235-ASA1,8,1310 (b) Expend moneys for any economic development program the corporation
11begins administering after the effective date of this paragraph .... [LRB inserts date],
12if that expenditure assists economic development in a rural county, subject to all of
13the following:
AB235-ASA1,8,1814 1. Before the corporation first expends moneys on each program under this
15paragraph, the corporation shall notify the joint committee on finance in writing of
16the corporation's intention to expend the moneys on the program. The notice shall
17describe the program and purposes for which the corporation proposes to expend the
18moneys under this paragraph.
AB235-ASA1,9,219 2. If, within 14 working days after the date of the corporation's notice under
20subd. 1., the cochairpersons of the joint committee on finance do not notify the
21corporation that the committee has scheduled a meeting to review the corporation's
22proposal, the corporation may make the expenditures as proposed in the
23corporation's notice. If, within 14 working days after the date of the corporation's
24notice under subd. 1., the cochairpersons of the committee notify the corporation that
25the committee has scheduled a meeting to review the corporation's proposal, the

1corporation may make the proposed expenditures only upon approval of the
2committee.
AB235-ASA1,9,53 3. The corporation shall adopt policies and procedures establishing, to the
4extent feasible, matching requirements for the corporation's expenditures under this
5paragraph.
AB235-ASA1,9,86 (c) Award a grant to a state agency if the corporation determines the state
7agency's expenditure of the grant moneys will assist economic development in a rural
8county, subject to all of the following:
AB235-ASA1,9,129 1. Before the corporation makes a grant under this paragraph, the corporation
10shall notify the joint committee on finance in writing of the corporation's intention
11to make the grant. The notice shall describe the program and purposes for which the
12corporation proposes to make the grant.
AB235-ASA1,9,2013 2. If, within 14 working days after the date of the corporation's notice under
14subd. 1., the cochairpersons of the joint committee on finance do not notify the
15corporation that the committee has scheduled a meeting to review the corporation's
16proposal, the corporation may make the grant as proposed in the corporation's notice.
17If, within 14 working days after the date of the corporation's notice under subd. 1.,
18the cochairpersons of the committee notify the corporation that the committee has
19scheduled a meeting to review the corporation's proposal, the corporation may make
20the proposed grant only upon approval of the committee.
AB235-ASA1,9,2421 (d) Before the corporation expends moneys on an economic development
22program under par. (a) or (b) or makes a grant under par. (c), the corporation shall
23consider the economic impact of the program or activity for which the moneys will
24be used.
AB235-ASA1,10,5
1(3g) Grants for revolving loan funds. (a) In this subsection and in sub. (3r),
2“eligible organization” means each county economic development organization
3serving a rural county and each regional economic development organization serving
4a rural county that the corporation determines under par. (d) is eligible for a grant
5under par. (c).
AB235-ASA1,10,76 (b) From the appropriation under under s. 20.192 (1) (bm), the corporation shall
7set aside $5,000,000 for grants under this subsection.
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