AB56,394 Section 394 . 40.03 (1) (cm) of the statutes is created to read:

AB56,452,8 40.03 (1) (cm) Shall appoint an internal auditor. The internal auditor shall report directly to the board.

AB56,395 Section 395. 40.03 (1) (i) of the statutes is amended to read:

AB56,452,14 40.03 (1) (i) May determine that some or all of the disability annuities and death benefits provided from the Wisconsin retirement system shall instead be provided through group insurance plans to be established by the group insurance board either as separate plans or as integral parts of the group life and income continuation insurance plans established under this chapter.

AB56,396 Section 396. 40.03 (1) (p) of the statutes is amended to read:

AB56,452,19 40.03 (1) (p) May, upon the recommendation of the actuary, transfer in whole or in part the assets and reserves held in any account described in s. 40.04 (9) to a different account described in s. 40.04 (9), for the purpose of providing any group insurance benefit offered by the group insurance board.

AB56,397 Section 397. 40.03 (1) (q) of the statutes is created to read:

AB56,452,23 40.03 (1) (q) For the purpose of the group income continuation insurance plan established under ss. 40.61 and 40.62 and the group long-term disability insurance plan established under s. 40.64:

AB56,453,3 1. May, on behalf of the state, enter into a contract or contracts with one or more insurers authorized to transact insurance business in this state for the purpose of providing the plans.

AB56,453,5 2. May, wholly or partially in lieu of subd. 1., on behalf of the state, provide the plans on a self-insured basis.

AB56,453,8 3. May take any action as trustees that is considered advisable and not specifically prohibited or delegated to some other governmental agency to carry out the purpose and intent of the plans.

AB56,453,15 4. May apportion all excess moneys becoming available to the board through operation of the plans to reduce premium payments in following contract years or to establish reserves to stabilize costs in subsequent years. If the board determines that the excess became available due to favorable experience of specific groups of employers or specific employee groups, the board may make the apportionment in a manner designated to benefit the specific employers or employee groups only, or to a greater extent than other employers and employee groups.

AB56,453,17 5. Shall take prompt action to liquidate any actuarial or cash deficit that occurs in the accounts and reserves maintained in the fund for the plans.

AB56,453,19 6. Shall accept timely appeals of determinations made by the department affecting any right or benefit under the plans.

AB56,398 Section 398 . 40.03 (2) (i) of the statutes is amended to read:

AB56,454,8 40.03 (2) (i) Shall Except as provided under pars. (ig) and (ir), shall promulgate, with the approval of the board, all rules, except rules promulgated under par. (ig) or (ir), that are required for the efficient administration of the fund or of any of the benefit plans established by this chapter. In addition to being approved by the board, and shall promulgate rules as necessary for a long-term disability insurance plan established under s. 40.64. All rules promulgated under this paragraph are subject to board approval under sub. (1) (m). Except rules promulgated under s. 40.30 (6), the rules promulgated under this paragraph relating to teachers must be approved are subject to approval by the teachers retirement board and under sub. (7) (d). Except rules promulgated under s. 40.30 (6), the rules promulgated under this paragraph relating to participants other than teachers must be approved are subject to approval by the Wisconsin retirement board, except rules promulgated under s. 40.30 under sub. (8) (d).

AB56,399 Section 399. 40.03 (2) (ig) of the statutes is amended to read:

AB56,454,13 40.03 (2) (ig) Shall promulgate, with the approval of the group insurance board, all rules required for the administration of the group health, long-term care, income continuation or life insurance plans established under subchs. IV to and VI and health savings accounts under subch. IV.

AB56,400 Section 400. 40.03 (2) (x) of the statutes is repealed.

AB56,401 Section 401. 40.03 (6) (intro.) of the statutes is amended to read:

AB56,454,20 40.03 (6) Group insurance board. (intro.) The With respect to the group insurance plans provided for by this chapter other than the group income continuation insurance plan established under ss. 40.61 and 40.62 and the group long-term disability insurance plan established under s. 40.64, the group insurance board:

AB56,402 Section 402. 40.03 (6) (a) 1. of the statutes is amended to read:

AB56,454,25 40.03 (6) (a) 1. Except as provided in par. (m), shall, on behalf of the state, enter into a contract or contracts with one or more insurers authorized to transact insurance business in this state for the purpose of providing the group insurance plans provided for by this chapter; or.

AB56,403 Section 403. 40.03 (6) (d) (intro.) of the statutes is amended to read:

AB56,455,6 40.03 (6) (d) (intro.) May take any action as trustees which that is deemed considered advisable and not specifically prohibited or delegated to some other governmental agency, to carry out the purpose and intent of the group insurance plans provided under this chapter, including, but not limited to, provisions in the appropriate contracts relating to:

AB56,404 Section 404. 40.03 (6) (i) of the statutes is amended to read:

AB56,455,11 40.03 (6) (i) Shall accept timely appeals of determinations made by the department affecting any right or benefit under any the group insurance plan provided for under this chapter plans that are overseen by the group insurance board.

AB56,405 Section 405. 40.03 (6) (n) of the statutes is created to read: