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AB56,448,2017 38.27 (1) (a) The creation or expansion of adult high school, adult basic
18education and English as a 2nd language courses. The board shall give priority to
19courses serving students with disabilities or minority, unemployed, or
20disadvantaged or handicapped students.
AB56,384 21Section 384. 38.28 (1m) (a) 1. of the statutes is amended to read:
AB56,449,522 38.28 (1m) (a) 1. “District aidable cost" means the annual cost of operating a
23technical college district, including debt service charges for district bonds and
24promissory notes for building programs or capital equipment, but excluding all
25expenditures relating to auxiliary enterprises and community service programs, all

1expenditures funded by or reimbursed with federal revenues, all receipts under ss.
238.12 (9) and (14), 38.14 (3) and (9), and 118.15 (2) (a), all receipts from grants
3awarded under ss. 38.04 (8), (28), and (31), 38.14 (11), 38.26, 38.27, 38.31, 38.33,
438.38, and 38.42, all fees collected under s. 38.24, and driver education and chauffeur
5training aids.
AB56,385 6Section 385 . 38.38 of the statutes is amended to read:
AB56,449,11 738.38 Services for handicapped students with disabilities. Annually the
8board may award a grant to each district board, from the appropriation under s.
920.292 (1) (f), to assist in funding transitional services for handicapped students with
10disabilities
. Each district board shall contribute matching funds equal to 25 percent
11of the amount awarded.
AB56,386 12Section 386. 39.11 (16) of the statutes is created to read:
AB56,449,1613 39.11 (16) When appropriate and related to the programs of the state
14educational radio and television network, procure or publish instructional material.
15A reasonable handling charge may be established to cover the costs of providing this
16material.
AB56,387 17Section 387. 39.285 (1) (b) of the statutes is amended to read:
AB56,450,518 39.285 (1) (b) If the board determines during a fiscal year that any formula
19approved under par. (a) during the prior fiscal year needs to be modified during the
20fiscal year in order to expend the entire amount appropriated for grants to students
21under s. 39.30 or 39.435, except s. 39.435 (2) or (5), in that fiscal year, the board shall
22submit
may implement the modified formula to the joint committee on finance. If
23the cochairpersons of the committee do not notify the board that the committee has
24scheduled a meeting for the purpose of reviewing the modified formula within 14
25working days after the date of the submittal, the modified formula may be

1implemented as proposed by the board. If, within 14 working days after the date of
2the submittal, the cochairpersons of the committee notify the board that the
3committee has scheduled a meeting for the purpose of reviewing the modified
4formula, the modified formula may be implemented only upon approval of the
5committee
.
AB56,388 6Section 388. 39.36 (title) of the statutes is amended to read:
AB56,450,8 739.36 (title) Repayment of stipends for teachers of the handicapped
8impaired.
AB56,389 9Section 389. 39.40 (5) of the statutes is amended to read:
AB56,450,1510 39.40 (5) The board may not make loans under sub. (2) after the effective date
11of this subsection .... [LRB inserts date].
The board shall administer the repayment
12and forgiveness of loans made under sub. (2) on or before the effective date of this
13subsection .... [LRB inserts date] and under
s. 36.25 (16), 1993 stats. The board shall
14treat such loans made under s. 36.25 (16), 1993 stats., as if they had been made under
15sub. (2).
AB56,390 16Section 390. 39.435 (2) of the statutes is renumbered 39.435 (2) (a) and
17amended to read:
AB56,451,318 39.435 (2) (a) The board shall award talent incentive grants to uniquely needy
19students enrolled at least half-time as first-time freshmen at public and private
20nonprofit institutions of higher education located in this state and to sophomores,
21juniors, and seniors who received such grants as freshmen. No grant under this
22subsection paragraph may exceed $1,800 for any academic year. The board may
23award a grant under this subsection paragraph to the same student for up to 10
24semesters or their equivalent, but may not award such a grant to the same student
25more than 6 years after the initial grant is awarded to that student. A student need

1not maintain continuous enrollment at an institution of higher education to remain
2eligible for a grant under this subsection paragraph. The board shall promulgate
3rules establishing eligibility criteria for grants under this subsection paragraph.
AB56,391 4Section 391. 39.435 (2) (b) of the statutes is created to read:
AB56,451,105 39.435 (2) (b) Before the end of a fiscal biennium, the board may make
6supplemental talent incentive grants to students to whom the board has awarded
7talent incentive grants under par. (a) in that fiscal biennium, but only if the board
8determines that, after the board makes all of the grants under par. (a) in that fiscal
9biennium, moneys are available in the appropriation account under s. 20.235 (1) (fd)
10for grants under this paragraph.
AB56,392 11Section 392. 39.435 (5) of the statutes is amended to read:
AB56,451,1812 39.435 (5) The board shall ensure that grants under this section are made
13available to students attending private or public institutions in this state who are
14deaf or hard of hearing or visually handicapped impaired and who demonstrate need.
15Grants may also be made available to such handicapped students attending private
16or public institutions in other states under criteria established by the board. In
17determining the financial need of these students special consideration shall be given
18to their unique and unusual costs.
AB56,393 19Section 393. 40.01 (2) of the statutes is amended to read:
AB56,452,520 40.01 (2) Purpose. The public employee trust fund is a public trust and shall
21be managed, administered, invested and otherwise dealt with solely for the purpose
22of ensuring the fulfillment at the lowest possible cost of the benefit commitments to
23participants, as set forth in this chapter, and shall not be used for any other purpose.
24Revenues collected for and balances in the accounts of a specific benefit plan shall
25be used only for the purposes of that benefit plan, including amounts allocated under

1s. 20.515 (1) (um) or (ut) or 40.04 (2), and shall not be used for the purposes of any
2other benefit plan. Each member of the employee trust funds board shall be a trustee
3of the fund and the fund shall be administered by the department of employee trust
4funds. All statutes relating to the fund shall be construed liberally in furtherance
5of the purposes set forth in this section.
AB56,394 6Section 394 . 40.03 (1) (cm) of the statutes is created to read:
AB56,452,87 40.03 (1) (cm) Shall appoint an internal auditor. The internal auditor shall
8report directly to the board.
AB56,395 9Section 395. 40.03 (1) (i) of the statutes is amended to read:
AB56,452,1410 40.03 (1) (i) May determine that some or all of the disability annuities and
11death benefits provided from the Wisconsin retirement system shall instead be
12provided through group insurance plans to be established by the group insurance
13board
either as separate plans or as integral parts of the group life and income
14continuation insurance plans established under this chapter.
AB56,396 15Section 396. 40.03 (1) (p) of the statutes is amended to read:
AB56,452,1916 40.03 (1) (p) May, upon the recommendation of the actuary, transfer in whole
17or in part the assets and reserves held in any account described in s. 40.04 (9) to a
18different account described in s. 40.04 (9), for the purpose of providing any group
19insurance benefit offered by the group insurance board.
AB56,397 20Section 397. 40.03 (1) (q) of the statutes is created to read:
AB56,452,2321 40.03 (1) (q) For the purpose of the group income continuation insurance plan
22established under ss. 40.61 and 40.62 and the group long-term disability insurance
23plan established under s. 40.64:
AB56,453,3
11. May, on behalf of the state, enter into a contract or contracts with one or more
2insurers authorized to transact insurance business in this state for the purpose of
3providing the plans.
AB56,453,54 2. May, wholly or partially in lieu of subd. 1., on behalf of the state, provide the
5plans on a self-insured basis.
AB56,453,86 3. May take any action as trustees that is considered advisable and not
7specifically prohibited or delegated to some other governmental agency to carry out
8the purpose and intent of the plans.
AB56,453,159 4. May apportion all excess moneys becoming available to the board through
10operation of the plans to reduce premium payments in following contract years or to
11establish reserves to stabilize costs in subsequent years. If the board determines
12that the excess became available due to favorable experience of specific groups of
13employers or specific employee groups, the board may make the apportionment in
14a manner designated to benefit the specific employers or employee groups only, or to
15a greater extent than other employers and employee groups.
AB56,453,1716 5. Shall take prompt action to liquidate any actuarial or cash deficit that occurs
17in the accounts and reserves maintained in the fund for the plans.
AB56,453,1918 6. Shall accept timely appeals of determinations made by the department
19affecting any right or benefit under the plans.
AB56,398 20Section 398 . 40.03 (2) (i) of the statutes is amended to read:
AB56,454,821 40.03 (2) (i) Shall Except as provided under pars. (ig) and (ir), shall promulgate,
22with the approval of the board, all rules, except rules promulgated under par. (ig) or
23(ir),
that are required for the efficient administration of the fund or of any of the
24benefit plans established by this chapter. In addition to being approved by the board,
25and shall promulgate rules as necessary for a long-term disability insurance plan

1established under s. 40.64. All rules promulgated under this paragraph are subject
2to board approval under sub. (1) (m). Except rules promulgated under s. 40.30 (6),
3the
rules promulgated under this paragraph relating to teachers must be approved
4are subject to approval by the teachers retirement board and under sub. (7) (d).
5Except rules promulgated under s. 40.30 (6), the
rules promulgated under this
6paragraph relating to participants other than teachers must be approved are subject
7to approval
by the Wisconsin retirement board, except rules promulgated under s.
840.30
under sub. (8) (d).
AB56,399 9Section 399. 40.03 (2) (ig) of the statutes is amended to read:
AB56,454,1310 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.
AB56,400 14Section 400. 40.03 (2) (x) of the statutes is repealed.
AB56,401 15Section 401. 40.03 (6) (intro.) of the statutes is amended to read:
AB56,454,2016 40.03 (6) Group insurance board. (intro.) The With respect to the group
17insurance plans provided for by this chapter other than the group income
18continuation insurance plan established under ss. 40.61 and 40.62 and the group
19long-term disability insurance plan established under s. 40.64, the
group insurance
20board:
AB56,402 21Section 402. 40.03 (6) (a) 1. of the statutes is amended to read:
AB56,454,2522 40.03 (6) (a) 1. Except as provided in par. (m), shall, on behalf of the state, enter
23into a contract or contracts with one or more insurers authorized to transact
24insurance business in this state for the purpose of providing the group insurance
25plans provided for by this chapter; or.
AB56,403
1Section 403. 40.03 (6) (d) (intro.) of the statutes is amended to read:
AB56,455,62 40.03 (6) (d) (intro.) May take any action as trustees which that is deemed
3considered advisable and not specifically prohibited or delegated to some other
4governmental agency, to carry out the purpose and intent of the group insurance
5plans provided under this chapter, including, but not limited to, provisions in the
6appropriate contracts relating to:
AB56,404 7Section 404. 40.03 (6) (i) of the statutes is amended to read:
AB56,455,118 40.03 (6) (i) Shall accept timely appeals of determinations made by the
9department affecting any right or benefit under any the group insurance plan
10provided for under this chapter
plans that are overseen by the group insurance
11board
.
AB56,405 12Section 405. 40.03 (6) (n) of the statutes is created to read:
AB56,455,1613 40.03 (6) (n) Notwithstanding par. (L), may contract with any entity to provide
14health and wellness services to any individual who is covered under a group health
15insurance plan under subch. IV at health clinics that are established within state
16facilities.
AB56,406 17Section 406 . 40.04 (2) (a) of the statutes is amended to read:
AB56,455,2318 40.04 (2) (a) An administrative account shall be maintained within the fund
19from which administrative costs of the department shall be paid, except charges for
20services performed by the investment board, costs of medical and vocational
21evaluations used in determinations of eligibility for benefits under ss. 40.61, 40.63
22and 40.65 and costs of contracting for insurance data collection and analysis services
23under s. 40.03 (6) (j)
.
AB56,407 24Section 407. 40.04 (2) (e) of the statutes is repealed.
AB56,408 25Section 408 . 40.22 (1) of the statutes is amended to read:
AB56,456,5
140.22 (1) Except as provided in sub. (2) and s. 40.26 (6), each employee
2currently in the service of, and receiving earnings from, a state agency or other
3participating employer shall be included within the provisions of the Wisconsin
4retirement system as a participating employee of that state agency or participating
5employer.
AB56,409 6Section 409 . 40.22 (2m) (intro.) of the statutes is amended to read:
AB56,456,137 40.22 (2m) (intro.) An Except as otherwise provided in s. 40.26 (6), an employee
8who was a participating employee before July 1, 2011, who is not expected to work
9at least one-third of what is considered full-time employment by the department,
10as determined by rule, and who is not otherwise excluded under sub. (2) from
11becoming a participating employee shall become a participating employee if he or she
12is subsequently employed by the state agency or other participating employer for
13either of the following periods:
AB56,410 14Section 410 . 40.22 (2r) (intro.) of the statutes is amended to read:
AB56,456,2115 40.22 (2r) (intro.) An Except as otherwise provided in s. 40.26 (6), an employee
16who was not a participating employee before July 1, 2011, who is not expected to work
17at least two-thirds of what is considered full-time employment by the department,
18as determined by rule, and who is not otherwise excluded under sub. (2) from
19becoming a participating employee shall become a participating employee if he or she
20is subsequently employed by the state agency or other participating employer for
21either of the following periods:
AB56,411 22Section 411 . 40.22 (3) (intro.) of the statutes is amended to read:
AB56,456,2523 40.22 (3) (intro.) A Except as otherwise provided in s. 40.26 (6), a person who
24qualifies as a participating employee shall be included within, and shall be subject
25to, the Wisconsin retirement system effective on one of the following dates:
AB56,412
1Section 412. 40.23 (1) (bm) of the statutes is amended to read:
AB56,457,82 40.23 (1) (bm) If an application by a participant age 55 or over, or by a protective
3occupation participant age 50 or over, for long-term disability insurance benefits
4under s. 40.64 is disapproved under rules promulgated by the department, the date
5which that would have been the effective date for the insurance benefits shall be is
6the retirement annuity effective date if requested by the applicant within 60 days of
7the disapproval or, if the disapproval is appealed, within 60 days of the final
8disposition of the appeal.
AB56,413 9Section 413 . 40.26 (6) (intro.), (a) and (b) of the statutes are created to read:
AB56,457,1510 40.26 (6) (intro.) Subsections (1) to (5) do not apply to a participant who applies
11for an annuity or lump sum payment during the period in which at least 30 days have
12elapsed between the participant's termination of employment as a teacher with a
13school district that is a participating employer, and becoming a teacher as an
14employee or contractor providing employee services as a teacher with any school
15district that is a participating employer if all of the following conditions are met:
AB56,457,1916 (a) At the time the participant terminates his or her employment as a teacher
17with a school district, the participant does not have an agreement with any school
18district that is a participating employer to return to employment as a teacher or enter
19into a contract to provide employee services as a teacher for the school district.
AB56,457,2120 (b) The participant elects on a form provided by the department to not become
21a participating employee.
AB56,414 22Section 414. 40.51 (8) of the statutes is amended to read:
AB56,458,223 40.51 (8) Every health care coverage plan offered by the state under sub. (6)
24shall comply with ss. 631.89, 631.90, 631.93 (2), 631.95, 632.72 (2), 632.728, 632.746
25(1) to (8) and (10), 632.747, 632.748, 632.798, 632.83, 632.835, 632.85, 632.853,

1632.855, 632.867, 632.87 (3) to (6), 632.885, 632.89, 632.895 (5m) and (8) to (17), and
2632.896.
AB56,415 3Section 415. 40.51 (8m) of the statutes is amended to read:
AB56,458,74 40.51 (8m) Every health care coverage plan offered by the group insurance
5board under sub. (7) shall comply with ss. 631.95, 632.728, 632.746 (1) to (8) and (10),
6632.747, 632.748, 632.798, 632.83, 632.835, 632.85, 632.853, 632.855, 632.867,
7632.885, 632.89, and 632.895 (11) (8) and (10) to (17).
AB56,416 8Section 416. 40.513 (3) (a) of the statutes is amended to read:
AB56,458,119 40.513 (3) (a) The employee was eligible for an employer contribution under
10s. 40.05 (4) (ag) during the 2015 calendar year and elected not to receive health care
11coverage in that calendar year or in any succeeding calendar year.
AB56,417 12Section 417. 40.61 (3) of the statutes is amended to read:
AB56,458,1913 40.61 (3) Any An employer under s. 40.02 (28), other than the state, may offer
14to all of its employees an a group income continuation insurance plan through a
15program offered by the group insurance board. Notwithstanding sub. (2) and ss.
1640.05 (5) and 40.62, the department may by rule establish different eligibility
17standards or contribution requirements for such those employees and employers and
18may by rule limit the categories of employers which that may be included as
19participating employers under this subchapter.
AB56,418 20Section 418. 40.62 (1) of the statutes is amended to read:
AB56,459,321 40.62 (1) The group insurance board shall establish an a group income
22continuation insurance plan providing for full or partial payment of the financial loss
23of earnings incurred as a result of injury or illness with separate provisions for
24short-term insurance with a benefit duration of no more than one year and
25long-term insurance covering injury or illness of indefinite duration. Employees An

1employee
insured under the plan shall be is eligible for benefits upon exhaustion of
2accumulated sick leave and completion of the elimination period established by the
3group insurance board.
AB56,419 4Section 419 . 40.64 of the statutes is created to read:
AB56,459,6 540.64 Long-term disability insurance coverage. The board may establish
6a group long-term disability insurance plan.
AB56,420 7Section 420. 40.65 (2) (a) of the statutes is amended to read:
AB56,459,228 40.65 (2) (a) This paragraph applies to participants who first apply for benefits
9before May 3, 1988. Any person desiring a benefit under this section must apply to
10the department of workforce development, which department shall determine
11whether the applicant is eligible to receive the benefit and the participant's monthly
12salary. Appeals from the eligibility decision shall follow the procedures under ss.
13102.16 to 102.26. If it is determined that an applicant is eligible, the department of
14workforce development shall notify the department of employee trust funds and
15shall certify the applicant's monthly salary. If at the time of application for benefits
16an applicant is still employed in any capacity by the employer in whose employ the
17disabling injury occurred or disease was contracted, that continued employment
18shall not affect that applicant's right to have his or her eligibility to receive those
19benefits determined in proceedings before the division of hearings and appeals in the
20department of administration
department of workforce development or the labor and
21industry review commission or in proceedings in the courts. The department of
22workforce development may promulgate rules needed to administer this paragraph.
AB56,421 23Section 421. 40.65 (2) (b) 3. of the statutes is amended to read:
AB56,460,324 40.65 (2) (b) 3. The department shall determine whether or not the applicant
25is eligible for benefits under this section on the basis of the evidence in subd. 2. An

1applicant may appeal a determination under this subdivision to the division of
2hearings and appeals in the department of administration
department of workforce
3development
.
AB56,422 4Section 422. 40.65 (2) (b) 4. of the statutes is amended to read:
AB56,460,75 40.65 (2) (b) 4. In hearing an appeal under subd. 3., the division of hearings and
6appeals in the department of administration
department of workforce development
7shall follow the procedures under ss. 102.16 to 102.26.
AB56,423 8Section 423. 41.51 of the statutes is renumbered 41.51 (intro.) and amended
9to read:
AB56,460,11 1041.51 Definitions. (intro.) In this subchapter, unless the context requires
11otherwise, “board"
:
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