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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AB68,704 5Section 704. 40.03 (2) (x) of the statutes is repealed.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.
AB68,651,2423 (b) The participant elects on a form provided by the department to not become
24a participating employee.
AB68,724 25Section 724 . 40.27 (2) (d) of the statutes is repealed.
AB68,725
1Section 725. 40.51 (2m) (a) of the statutes is repealed.
AB68,726 2Section 726. 40.51 (2m) (b) of the statutes is renumbered 40.51 (2m) and
3amended to read:
AB68,652,74 40.51 (2m) If an eligible employee is divorced or was a domestic partner in a
5dissolved domestic partnership, the eligible employee may not enroll a new spouse
6or domestic partner in a group health insurance plan under this subchapter until 6
7months have elapsed since the date of the divorce or dissolved domestic partnership.
AB68,727 8Section 727. 40.51 (7) (a) of the statutes is amended to read:
AB68,652,209 40.51 (7) (a) Any employer, other than the state, including an employer that
10is not a participating employer, may offer to all of its employees a health care
11coverage plan through a program offered by the group insurance board.
12Notwithstanding sub. (2) and ss. 40.05 (4) and 40.52 (1), the department may by rule
13establish different eligibility standards or contribution requirements for such
14employees and employers. Beginning on January 1, 2012, except as otherwise
15provided in a collective bargaining agreement under subch. IV of ch. 111 that covers
16public safety employees or transit employees
and except as provided in par. (b), an
17employer may not offer a health care coverage plan to its employees under this
18subsection if the employer pays more than 88 percent of the average premium cost
19of plans offered in any tier with the lowest employee premium cost under this
20subsection.
AB68,728 21Section 728 . 40.51 (8) of the statutes is amended to read:
AB68,653,222 40.51 (8) Every health care coverage plan offered by the state under sub. (6)
23shall comply with ss. 631.89, 631.90, 631.93 (2), 631.95, 632.72 (2), 632.729, 632.746
24(1) to (8) and (10), 632.747, 632.748, 632.798, 632.83, 632.835, 632.85, 632.853,

1632.855, 632.862, 632.867, 632.87 (3) to (6), 632.871, 632.885, 632.89, 632.895 (5m)
2and (8) to (17), and 632.896.
AB68,729 3Section 729 . 40.51 (8) of the statutes, as affected by 2021 Wisconsin Act ....
4(this act), section 728, is amended to read:
AB68,653,95 40.51 (8) Every health care coverage plan offered by the state under sub. (6)
6shall comply with ss. 631.89, 631.90, 631.93 (2), 631.95, 632.72 (2), 632.728, 632.729,
7632.746 (1) to (8) and (10), 632.747, 632.748, 632.798, 632.83, 632.835, 632.85,
8632.853, 632.855, 632.862, 632.867, 632.87 (3) to (6), 632.871, 632.885, 632.89,
9632.895 (5m) and (8) to (17), and 632.896.
AB68,730 10Section 730 . 40.51 (8) of the statutes, as affected by 2021 Wisconsin Act ....
11(this act), section 729, is amended to read:
AB68,653,1612 40.51 (8) Every health care coverage plan offered by the state under sub. (6)
13shall comply with ss. 631.89, 631.90, 631.93 (2), 631.95, 632.72 (2), 632.728, 632.729,
14632.746 (1) to (8) and (10), 632.747, 632.748, 632.798, 632.83, 632.835, 632.85,
15632.853, 632.855, 632.861, 632.862, 632.867, 632.87 (3) to (6), 632.871, 632.885,
16632.89, 632.895 (5m) and (8) to (17), and 632.896.
AB68,731 17Section 731 . 40.51 (8m) of the statutes is amended to read:
AB68,653,2118 40.51 (8m) Every health care coverage plan offered by the group insurance
19board under sub. (7) shall comply with ss. 631.95, 632.729, 632.746 (1) to (8) and (10),
20632.747, 632.748, 632.798, 632.83, 632.835, 632.85, 632.853, 632.855, 632.862,
21632.867, 632.871, 632.885, 632.89, and 632.895 (11) to (17).
AB68,732 22Section 732 . 40.51 (8m) of the statutes, as affected by 2021 Wisconsin Act ....
23(this act), section 731, is amended to read:
AB68,654,224 40.51 (8m) Every health care coverage plan offered by the group insurance
25board under sub. (7) shall comply with ss. 631.95, 632.728, 632.729, 632.746 (1) to

1(8) and (10), 632.747, 632.748, 632.798, 632.83, 632.835, 632.85, 632.853, 632.855,
2632.862, 632.867, 632.871, 632.885, 632.89, and 632.895 (11) (8) and (10) to (17).
AB68,733 3Section 733 . 40.51 (8m) of the statutes, as affected by 2021 Wisconsin Act ....
4(this act), section 732, is amended to read:
AB68,654,85 40.51 (8m) Every health care coverage plan offered by the group insurance
6board under sub. (7) shall comply with ss. 631.95, 632.728, 632.729, 632.746 (1) to
7(8) and (10), 632.747, 632.748, 632.798, 632.83, 632.835, 632.85, 632.853, 632.855,
8632.861, 632.862, 632.867, 632.871, 632.885, 632.89, and 632.895 (8) and (10) to (17).
AB68,734 9Section 734 . 40.51 (15m) of the statutes is repealed.
AB68,735 10Section 735. 40.513 (3) (b) of the statutes is amended to read:
AB68,654,1211 40.513 (3) (b) The employee's spouse or domestic partner is receiving health
12care coverage under s. 40.51 (6).
AB68,736 13Section 736. 40.52 (2) of the statutes is amended to read:
AB68,655,214 40.52 (2) Health insurance benefits under this subchapter shall be integrated,
15with exceptions determined appropriate by the group insurance board, with benefits
16under federal plans for hospital and health care for the aged and disabled.
17Exclusions and limitations with respect to benefits and different rates may be
18established for persons eligible under federal plans for hospital and health care for
19the aged and disabled in recognition of the utilization by persons within the age
20limits eligible under the federal program. The plan may include special provisions
21for spouses, domestic partners, and other dependents covered under a plan
22established under this subchapter where one spouse or domestic partner is eligible
23under federal plans for hospital and health care for the aged but the others are not
24eligible because of age or other reasons. As part of the integration, the department

1may, out of premiums collected under s. 40.05 (4), pay premiums for the federal
2health insurance.
AB68,737 3Section 737. 40.55 (1) of the statutes is amended to read:
AB68,655,104 40.55 (1) Except as provided in sub. (5), the state shall offer, through the group
5insurance board, to eligible employees under s. 40.02 (25) (bm) and to state
6annuitants long-term care insurance policies which have been filed with the office
7of the commissioner of insurance and which have been approved for offering under
8contracts established by the group insurance board. The state shall also allow an
9eligible employee or a state annuitant to purchase those policies for his or her spouse,
10domestic partner,
or parent.
AB68,738 11Section 738 . 40.61 (2) of the statutes is amended to read:
AB68,656,312 40.61 (2) Except as provided in sub. (4), any an eligible employee may become
13covered by income continuation insurance by electing coverage within 30 days of
14initial eligibility, to be effective as of the first day of the month that first occurs during
15the 30-day period, or by electing coverage within 60 days of initially becoming
16eligible for a higher level of employer contribution towards the premium cost to be
17effective as of the first day of the month following the date of eligibility for teachers
18employed by the university and effective as of the following April 1 for all other
19employees. Any An employee who does not so elect at one of these times, or who
20subsequently cancels the insurance, may not thereafter become insured unless the
21employee furnishes evidence of insurability under the terms of the contract, or as
22otherwise provided by rule for employees under sub. (3), at the employee's own
23expense or obtains coverage subject to contractual waiting periods if contractual
24waiting periods are provided for by the contract or by rule for employees under sub.
25(3). An employee who furnishes satisfactory evidence of insurability under the terms

1of the contract shall become insured as of the first day of the month following the date
2of approval of evidence. The method to be used shall be determined by the group
3insurance
board under sub. (1).
AB68,739 4Section 739 . 40.61 (3) of the statutes is amended to read:
AB68,656,115 40.61 (3) Any An employer under s. 40.02 (28), other than the state, may offer
6to all of its employees an a group income continuation insurance plan through a
7program offered by the group insurance board. Notwithstanding sub. (2) and ss.
840.05 (5) and 40.62, the department may by rule establish different eligibility
9standards or contribution requirements for such those employees and employers and
10may by rule limit the categories of employers which that may be included as
11participating employers under this subchapter.
AB68,740 12Section 740. 40.62 (1) of the statutes is amended to read:
AB68,656,2013 40.62 (1) The group insurance board shall establish an a group income
14continuation insurance plan providing for full or partial payment of the financial loss
15of earnings incurred as a result of injury or illness with separate provisions for
16short-term insurance with a benefit duration of no more than one year and
17long-term insurance covering injury or illness of indefinite duration. Employees An
18employee
insured under the plan shall be eligible for benefits upon exhaustion of
19accumulated sick leave and completion of the elimination period established by the
20group insurance board.
AB68,741 21Section 741 . 40.63 (5) of the statutes is amended to read:
AB68,657,1522 40.63 (5) The department shall make a report based on the evidence prescribed
23in subs. (1) to (4) as to whether a disability benefit shall be granted and the
24department shall submit the report to the teachers retirement board for teacher
25participants and to the Wisconsin retirement board for participants other than

1teachers
. A copy of the report and notice of the date that the report was presented,
2or will be presented, to the appropriate board and the board's name, shall be mailed
3to the applicant and to the applicant's former employer. Either the applicant or the
4employer may request a hearing under s. 227.44 to contest the department's
5determination by filing a timely appeal with the appropriate board. If a request for
6a hearing is not timely filed, and the appropriate board does not disapprove the
7department's determination or request additional information within the time
8allowed for filing appeals, the report shall be final. If the board requests additional
9information, the report shall be final 30 days after the board's receipt of the requested
10information unless the board disapproves the report. If the report is disapproved,
11notice of the board's action shall be sent to the applicant and the applicant's former
12employer. Either the applicant or the employer may contest the board's action by
13submitting a written request for a hearing under s. 227.44 to the appropriate board
14within 30 days following the date on which the notice of the board's action was mailed
15to the applicant or the employer.
AB68,742 16Section 742 . 40.63 (9) (d) of the statutes is amended to read:
AB68,658,517 40.63 (9) (d) If the department terminates a disability annuity under this
18subsection, the department shall make a report which shall include the department's
19determination and the reasons for the determination. The department shall submit
20the report to the teachers retirement board for teacher participants and to the
21Wisconsin retirement board for participants other than teachers
. A copy of the report
22and notice of the date that the report was presented, or will be presented, to the
23appropriate board, and the board's name, shall be mailed to the affected annuitant.
24An annuitant may request a hearing under s. 227.44 to contest the department's
25determination by filing a timely appeal with the appropriate board. If a request for

1a hearing is not timely filed, and the appropriate board does not disapprove the
2department's determination or request additional information within the time
3allowed for filing appeals, the report shall be final. If the board requests additional
4information, the report shall be final 30 days after the board's receipt of the requested
5information unless the board disapproves the department's determination.
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