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AB68,639,1614 2. The person was continuously present in this state for at least 3 years
15following the first day of attending a high school in this state or immediately
16preceding receipt of a declaration of equivalency of high school graduation.
AB68,639,2017 3. The person enrolls in a district school and provides the district board with
18proof that the person has filed or will file an application for lawful permanent
19resident status with the U.S. citizenship and immigration services as soon as the
20person is eligible to do so.
AB68,686 21Section 686 . 38.22 (6) (g) of the statutes is created to read:
AB68,639,2222 38.22 (6) (g) Any person who meets all of the following requirements:
AB68,639,2523 1. The person, or the person's parent or grandparent, is a member of a federally
24recognized American Indian tribe or band in this state or is a member of a federally
25recognized tribe in a state contiguous with Wisconsin.
AB68,640,4
12. The person has resided in Wisconsin, Minnesota, Illinois, Iowa, or Michigan,
2or in any combination of these states, for at least 12 months immediately preceding
3the beginning of any semester or session in which the person enrolls in a district
4school.
AB68,687 5Section 687. 39.42 of the statutes is amended to read:
AB68,640,16 639.42 Interstate agreements. The board, with the approval of the joint
7committee on finance, or the governing boards of any publicly supported institution
8of post-high school education, with the approval of the board and the joint committee
9on finance, may enter into agreements or understandings which include remission
10of nonresident tuition for designated categories of students at state institutions of
11higher education with appropriate state agencies and institutions of higher
12education in other states to facilitate use of public higher education institutions of
13this state and other states. Such agreements and understandings shall have as their
14purpose the mutual improvement of educational advantages for residents of this
15state and such other states or institutions of other states with which agreements are
16made. This section does not apply to the agreement under s. 36.27 (2r).
AB68,688 17Section 688. 39.47 (title) of the statutes is amended to read:
AB68,640,19 1839.47 (title) Minnesota-Wisconsin public vocational school student
19reciprocity agreement.
AB68,689 20Section 689. 39.47 (1) of the statutes is amended to read:
AB68,641,621 39.47 (1) There is established, to be administered by the board, a
22Minnesota-Wisconsin public vocational school student reciprocity agreement, the
23purpose of which shall be to ensure that neither state shall profit at the expense of
24the other and that the determination of any amounts owed by either state under the
25agreement shall be based on an equitable formula which reflects the educational

1costs incurred by the 2 states, reflects any differentials in usage by residents of either
2state of the public institutions of higher education located in the other state, and
3reflects any differentials in the resident tuition charged at comparable public
4institutions of higher education of the 2 states
. The board, representing this state,
5shall enter into an agreement meeting the requirements of this section with the
6designated body representing the state of Minnesota.
AB68,690 7Section 690. 39.47 (2) of the statutes is amended to read:
AB68,641,208 39.47 (2) The agreement under this section shall provide for the waiver of
9nonresident tuition fees for a resident of either state who is enrolled in a public
10vocational school located in the other state. The agreement shall also establish a
11reciprocal fee structure for residents of either state who are enrolled in public
12institutions of higher education, other than vocational schools, located in the other
13state.
The reciprocal fee may not exceed the higher of the resident tuition fees that
14would be charged the student at the public institution of higher education vocational
15school
in which the student is enrolled or the resident tuition fees that would be
16charged the student at a comparable public institutions of higher education
17vocational school located in his or her state of residence, as specified in the annual
18administrative memorandum under sub. (2g). The agreement shall take effect on
19July 1, 2007.
The agreement is subject to the approval of the joint committee on
20finance under s. 39.42.
AB68,691 21Section 691 . 40.01 (3) of the statutes is amended to read:
AB68,642,1122 40.01 (3) Compatibility of trustee responsibilities. Membership on the
23employee trust funds board, group insurance board, and deferred compensation
24board, Wisconsin retirement board and the teachers retirement board shall not be
25incompatible with any other public office. The board members and the employees of

1the department shall not be deemed to have a conflict of interest in carrying out their
2responsibilities and duties in administering this chapter, or taking other appropriate
3actions necessary to achieve the purposes of this chapter, solely by reason of their
4being eligible for benefits under the benefit plans provided under this chapter.
5However, any board member or employee of the department is expressly prohibited
6from participating in decisions directly related to a specific benefit, credit, claim, or
7application of the person and from participating in negotiations or decisions on the
8selection of actuarial, medical, legal, insurance, or other independent contractors if
9the board member or employee of the department has a direct or indirect financial
10interest in or is an officer or employee or is otherwise associated with the
11independent contractor.
AB68,692 12Section 692. 40.02 (8) (b) 3. of the statutes is repealed.
AB68,693 13Section 693. 40.02 (21d) (intro.) of the statutes is amended to read:
AB68,642,1614 40.02 (21d) (intro.) “Domestic partnership" means a relationship between 2
15individuals, who submitted an affidavit of domestic partnership to the department
16before September 23, 2017,
that satisfies all of the following:
AB68,694 17Section 694 . 40.03 (1) (dm) of the statutes is created to read:
AB68,642,2118 40.03 (1) (dm) Shall develop and implement policies, principles, and directives
19for the office of internal audit and determine the qualifications of and appoint, in the
20classified service, staff for the office of internal audit. Staff appointed under this
21paragraph shall report directly to the board.
AB68,695 22Section 695 . 40.03 (1) (i) of the statutes is amended to read:
AB68,643,223 40.03 (1) (i) May determine that some or all of the disability annuities and
24death benefits provided from the Wisconsin retirement system shall instead be
25provided through group insurance plans to be established by the group insurance

1board
either as separate plans or as integral parts of the group life and income
2continuation insurance plans established under this chapter.
AB68,696 3Section 696 . 40.03 (1) (j) of the statutes is amended to read:
AB68,643,124 40.03 (1) (j) Shall accept timely appeals from determinations made by the
5department, other than appeals of determinations made by the department
6regarding disability annuities
. The board shall review the relevant facts and may
7hold a hearing. Upon completion of its review and hearing, if any, the board shall
8make a determination which it shall certify to the participating employer or the
9appropriate state agency and to the appropriate employee, if any. The board's
10determination of an employee's status under s. 40.06 (1) (e) shall remain in effect
11until receipt by the department of notification indicating a different classification.
12A participant may appeal that determination as provided by s. 40.06 (1) (e).
AB68,697 13Section 697 . 40.03 (1) (p) of the statutes is amended to read:
AB68,643,1714 40.03 (1) (p) May, upon the recommendation of the actuary, transfer in whole
15or in part the assets and reserves held in any account described in s. 40.04 (9) to a
16different account described in s. 40.04 (9), for the purpose of providing any group
17insurance benefit offered by the group insurance board.
AB68,698 18Section 698 . 40.03 (1) (q) of the statutes is created to read:
AB68,643,2119 40.03 (1) (q) For the purposes of the group income continuation insurance plan
20established under ss. 40.61 and 40.62 and the group long-term disability insurance
21plan established under s. 40.64:
AB68,643,2422 1. May, on behalf of the state, enter into a contract or contracts with one or more
23insurers authorized to transact insurance business in this state for the purpose of
24providing the plans.
AB68,644,2
12. May, wholly or partially in lieu of subd. 1., on behalf of the state, provide the
2plans on a self-insured basis.
AB68,644,53 3. May take any action as trustees that is considered advisable and not
4specifically prohibited or delegated to some other governmental agency to carry out
5the purpose and intent of the plans.
AB68,644,126 4. May apportion all excess moneys becoming available to the board through
7operation of the plans to reduce premium payments in following contract years or to
8establish reserves to stabilize costs in subsequent years. If the board determines
9that the excess became available due to favorable experience of specific groups of
10employers or specific employee groups, the board may make the apportionment in
11a manner designated to benefit the specific employers or employee groups only or to
12a greater extent than other employers and employee groups.
AB68,644,1413 5. Shall take prompt action to liquidate any actuarial or cash deficit that occurs
14in the accounts and reserves maintained in the fund for the plans.
AB68,644,1615 6. Shall accept timely appeals of determinations made by the department
16affecting any right or benefit under the plans.
AB68,699 17Section 699 . 40.03 (2) (d) of the statutes is amended to read:
AB68,644,2118 40.03 (2) (d) May suspend an annuity pending final action by the board, or a
19disability annuity pending final action by the Wisconsin retirement board or the
20teachers retirement board
, when, in the secretary's judgment, the annuitant is not
21eligible to receive the annuity.
AB68,700 22Section 700 . 40.03 (2) (i) of the statutes is amended to read:
AB68,645,823 40.03 (2) (i) Shall Except as provided under pars. (ig) and (ir), shall promulgate,
24with the approval of the board, all rules, except rules promulgated under par. (ig) or
25(ir),
that are required for the efficient administration of the fund or of any of the

1benefit plans established by this chapter. In addition to being approved by the board,
2rules promulgated under this paragraph relating to teachers must be approved by
3the teachers retirement board and
rules promulgated under this paragraph relating
4to participants other than teachers must be approved by the Wisconsin retirement
5board, except rules promulgated under s. 40.30
and shall promulgate rules as
6necessary for a long-term disability insurance plan established under s. 40.64. All
7rules promulgated under this paragraph are subject to board approval under sub. (1)
8(m)
.
AB68,701 9Section 701 . 40.03 (2) (ig) of the statutes is amended to read:
AB68,645,1310 40.03 (2) (ig) Shall promulgate, with the approval of the group insurance board,
11all rules required for the administration of the group health, long-term care, income
12continuation
or life insurance plans established under subchs. IV to and VI and
13health savings accounts under subch. IV.
AB68,702 14Section 702 . 40.03 (2) (p) of the statutes is amended to read:
AB68,645,1915 40.03 (2) (p) Shall establish procedures for and conduct the elections of board
16members required under ss. s. 15.16 (1) (d) and 15.165 (3) (a) 1., 2., 6. and 7. (1) (cm)
171.
The procedures shall include the establishment of a nominating process and shall
18provide for the distribution of ballots to all participating employees and annuitants
19eligible to vote in the election.
AB68,703 20Section 703 . 40.03 (2) (v) of the statutes is amended to read:
AB68,646,421 40.03 (2) (v) May settle any dispute in an appeal of a determination made by
22the department that is subject to review under sub. (1) (j), or (6) (i), (7) (f), or (8) (f),
23or s. 40.80 (2g), but only with the approval of the board having the authority to accept
24the appeal. In deciding whether to settle such a dispute, the secretary shall consider
25the cost of litigation, the likelihood of success on the merits, the cost of delay in

1resolving the dispute, the actuarial impact on the trust fund, and any other relevant
2factor the secretary considers appropriate. Any moneys paid by the department to
3settle a dispute under this paragraph shall be paid from the appropriation account
4under s. 20.515 (1) (r).
AB68,704 5Section 704. 40.03 (2) (x) of the statutes is repealed.
AB68,705 6Section 705 . 40.03 (4m) of the statutes is created to read:
AB68,646,107 40.03 (4m) Office of internal audit. (a) The office of internal audit shall
8provide independent assurance that the public employee trust fund assets under the
9control of the department are safeguarded for the purpose of ensuring the fulfillment
10of the benefit commitments to individuals under this chapter.
AB68,646,1211 (b) The internal auditor may review any activity, information, or record of the
12department that relates to the administration of the fund.
AB68,646,1613 (c) The internal auditor shall plan and conduct audit activities, including
14external audits, risk assessments, research projects, and management reviews,
15under the direction of the board and in accordance with policies, principles, and
16directives determined by the board.
AB68,646,1917 (d) The internal auditor shall monitor the department's compliance with
18applicable legal requirements and contracts entered into by the department and the
19board.
AB68,706 20Section 706 . 40.03 (6) (intro.) of the statutes is amended to read:
AB68,646,2521 40.03 (6) Group insurance board. (intro.) The With respect to the group
22insurance plans provided for by this chapter other than the group income
23continuation insurance plan established under ss. 40.61 and 40.62 and the group
24long-term disability insurance plan established under s. 40.64, the
group insurance
25board:
AB68,707
1Section 707. 40.03 (6) (a) 1. of the statutes is amended to read:
AB68,647,52 40.03 (6) (a) 1. Except as provided in par. (m), shall, on behalf of the state, enter
3into a contract or contracts with one or more insurers authorized to transact
4insurance business in this state for the purpose of providing the group insurance
5plans provided for by this chapter; or
AB68,708 6Section 708 . 40.03 (6) (d) (intro.) of the statutes is amended to read:
AB68,647,117 40.03 (6) (d) (intro.) May take any action as trustees which that is deemed
8advisable and not specifically prohibited or delegated to some other governmental
9agency, to carry out the purpose and intent of the group insurance plans provided
10under this chapter
, including, but not limited to, provisions in the appropriate
11contracts relating to:
AB68,709 12Section 709 . 40.03 (6) (i) of the statutes is amended to read:
AB68,647,1513 40.03 (6) (i) Shall accept timely appeals of determinations made by the
14department affecting any right or benefit under any group insurance plan provided
15for under this chapter
plans that are overseen by the group insurance board.
AB68,710 16Section 710 . 40.03 (7) of the statutes is repealed.
AB68,711 17Section 711 . 40.03 (8) of the statutes is repealed.
AB68,712 18Section 712 . 40.04 (3) (a) of the statutes is amended to read:
AB68,648,219 40.04 (3) (a) The net gain or loss of the variable retirement investment trust
20shall be distributed annually on December 31 to each participating account in the
21same ratio as each account's average daily balance within the respective trust bears
22to the total average daily balance of all participating accounts in the trust. The
23amount to be distributed shall be the excess of the increase within the period in the
24value of the assets of the trust resulting from income from the investments of the
25trust and from the sale or appreciation in value of any investment of the trust, over

1the decrease within the period in the value of the assets resulting from the sale or
2the depreciation in value of any investments of the trust.
AB68,713 3Section 713 . 40.04 (3) (am) 3. (intro.) of the statutes is amended to read:
AB68,648,84 40.04 (3) (am) 3. (intro.) Annually, on December 31, the sum of all of the
5following shall be distributed from the market recognition account to each
6participating account in the core retirement investment trust in the same ratio as
7each account's average daily balance bears to the total average daily balance of all
8participating accounts in the trust:
AB68,714 9Section 714 . 40.05 (2) (aw) of the statutes is created to read:
AB68,648,1710 40.05 (2) (aw) For purposes of this subsection, the participating employer of an
11employee subject to s. 40.65 who is on a deployment, training, or readiness exercise
12as the member of an urban search and rescue task force under a contract under s.
13323.72 (1) is the local agency, and the local agency shall contribute any additional
14percentage or percentages related to the deployment, training, or readiness exercises
15under a contract under s. 323.72 (1) as calculated by the actuary under s. 40.03 (5)
16(c). A local agency may seek reimbursement from the department of military affairs
17under s. 323.72 (2m).
AB68,715 18Section 715. 40.05 (4) (a) 2. of the statutes is amended to read:
AB68,649,719 40.05 (4) (a) 2. For an insured employee who is an eligible employee under s.
2040.02 (25) (a) 2. or (b) 1m. or 2c., the employer shall pay required employer
21contributions toward the health insurance premium of the insured employee
22beginning on the date on which the employee becomes insured. For an insured state
23employee who is currently employed, but who is not a limited term appointment
24under s. 230.26 or an eligible employee under s. 40.02 (25) (a) 2. or (b) 1m. or 2c., the
25employer shall pay required employer contributions toward the health insurance

1premium of the insured employee beginning on the first day of the 3rd 2nd month
2beginning after the date on which the employee begins employment with the state,
3not including any leave of absence. For an insured employee who has a limited term
4appointment under s. 230.26, the employer shall pay required employer
5contributions toward the health insurance premium of the insured employee
6beginning on the first day of the 7th month beginning after the date on which the
7employee first becomes a participating employee.
AB68,716 8Section 716. 40.06 (8) of the statutes is created to read:
AB68,649,129 40.06 (8) For periods during which a protective occupation participant who is
10a participating employee is on a deployment, training, or readiness exercise with an
11urban search and rescue task force under a contract under s. 323.72 (1), all of the
12following shall apply:
AB68,649,1413 (a) The employer remits required contributions to the department under s.
1440.05 (1) (a) and (2) (a).
AB68,649,1715 (b) The employer reports to the department service and earnings that are at
16least the same rate the employee would have received if the employee had not been
17on the deployment, training, or readiness exercise.
AB68,717 18Section 717 . 40.08 (12) of the statutes is amended to read:
AB68,650,219 40.08 (12) Court review. Notwithstanding s. 227.52, any action, decision, or
20determination of the board, the Wisconsin retirement board, the teachers retirement
21board,
the group insurance board, or the deferred compensation board in an
22administrative proceeding shall be reviewable only by an action for certiorari in the
23circuit court for Dane County that is commenced by any party to the administrative
24proceeding, including the department, within 30 days after the date on which notice

1of the action, decision, or determination is mailed to that party, and any party to the
2certiorari proceedings may appeal the decision of that court.
AB68,718 3Section 718. 40.22 (1) of the statutes is amended to read:
AB68,650,84 40.22 (1) Except as otherwise provided in sub. (2) and s. 40.26 (6) and (7), each
5employee currently in the service of, and receiving earnings from, a state agency or
6other participating employer shall be included within the provisions of the Wisconsin
7retirement system as a participating employee of that state agency or participating
8employer.
AB68,719 9Section 719. 40.22 (2m) (intro.) of the statutes is amended to read:
AB68,650,1610 40.22 (2m) (intro.) Except as otherwise provided in s. 40.26 (6) and (7), an
11employee who was a participating employee before July 1, 2011, who is not expected
12to work at least one-third of what is considered full-time employment by the
13department, as determined by rule, and who is not otherwise excluded under sub. (2)
14from becoming a participating employee shall become a participating employee if he
15or she is subsequently employed by the state agency or other participating employer
16for either of the following periods:
AB68,720 17Section 720. 40.22 (2r) (intro.) of the statutes is amended to read:
AB68,650,2418 40.22 (2r) (intro.) Except as otherwise provided in s. 40.26 (6) and (7), an
19employee who was not a participating employee before July 1, 2011, who is not
20expected to work at least two-thirds of what is considered full-time employment by
21the department, as determined by rule, and who is not otherwise excluded under sub.
22(2) from becoming a participating employee shall become a participating employee
23if he or she is subsequently employed by the state agency or other participating
24employer for either of the following periods:
AB68,721 25Section 721 . 40.22 (3) (intro.) of the statutes is amended to read:
AB68,651,3
140.22 (3) (intro.) Except as otherwise provided in s. 40.26 (6) and (7), a person
2who qualifies as a participating employee shall be included within, and shall be
3subject to, the Wisconsin retirement system effective on one of the following dates:
AB68,722 4Section 722 . 40.23 (1) (bm) of the statutes is amended to read:
AB68,651,115 40.23 (1) (bm) If an application by a participant age 55 or over, or by a protective
6occupation participant age 50 or over, for long-term disability insurance benefits
7under s. 40.64 is disapproved under rules promulgated by the department, the date
8which would have been the effective date for the insurance benefits shall be is the
9retirement annuity effective date if requested by the applicant within 60 days of the
10disapproval or, if the disapproval is appealed, within 60 days of the final disposition
11of the appeal.
AB68,723 12Section 723. 40.26 (7) of the statutes is created to read:
AB68,651,1813 40.26 (7) Subsections (1) to (5) do not apply to a participant who applies for an
14annuity or lump sum payment during the period in which at least 15 days have
15elapsed between the participant's termination of employment as a teacher with a
16school district that is a participating employer and becoming a teacher as an
17employee or contractor providing employee services with any school district that is
18a participating employer if all of the following conditions are met:
AB68,651,2219 (a) At the time the participant terminates his or her employment as a teacher
20with a school district, the participant does not have an agreement with any school
21district that is a participating employer to return to employment as a teacher or enter
22into a contract to provide employee services as a teacher for the school district.
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