Current law permits GIB to contract with the Department of Health Services
(DHS) and other public or private entities for data collection and analysis services
related to health maintenance organizations and insurance companies that provide
health insurance to state employees. This bill permits GIB to contract for any other
consulting services related to plans it offers.
This bill provides that if DETF determines that an audit of its employee benefit
programs is necessary during the 2011-12 fiscal year, for the purpose of verifying the
eligibility of dependents covered under the programs, DETF must submit a written
request to the secretary of administration to expend an amount not exceeding
$700,000 to conduct the audit.
State Government
State finance
This bill increases the amount of state public debt that may be contracted to
refund any unpaid indebtedness used to finance tax-supported or self-amortizing

facilities from $309,000,000 to $474,000,000. Such refunded debt must be contracted
before July 1, 2011.
This bill requires the secretary of administration, before July 1, 2011, to lapse
to the general fund, from executive branch appropriations, an amount equal to
$27,891,400; requires the cochairpersons of the Joint Committee on Legislative
Organization to lapse to the general fund, from appropriations to the legislature, an
amount equal to $717,700; requires the governor to lapse to the general fund, from
appropriations to the office of the governor, an amount equal to $37,500; and requires
the chief justice of the supreme court to lapse to the general fund, from
appropriations to the judicial branch, an amount equal to $1,153,400. The lapses
seek to capture employer savings resulting from increases in state employee
payments for health insurance and retirement contributions.
health and human services
Medical Assistance
Under current law, DHS administers the Medical Assistance (MA) program,
which is a joint federal and state program that provides health services to
individuals who have limited resources. Also under current law, DHS makes
payments from a long-term care general purpose revenue (GPR) appropriation
account, including community aids to counties, payments for certain MA programs,
and social service payments. DHS also currently makes payments for
administration of income maintenance activities among other payments. This bill
decreases the amount that DHS is authorized to spend from the long-term care GPR
appropriation account in fiscal year 2010-11. The bill also increases the amount that
DHS is authorized to spend from the MA program benefits and administration GPR
appropriation accounts, the income maintenance GPR appropriation account, and
the MA trust fund, in fiscal year 2010-11.
In addition, the bill increases the amount that DHS may spend from the GPR
account for fiscal year 2010-11 for the MA program for the purposes of funding the
contribution for indigent health care for Milwaukee County and making capitation
payments to care management organizations and other entities that provide services
to MA recipients under a managed care system for services provided in June 2011
to individuals enrolled in care management organizations and managed care
systems.
Public assistance
Reflecting the receipt of emergency contingency funds under the Temporary
Assistance for Needy Families (TANF) block grant program, this bill increases by
$37,000,000 the amount of TANF moneys allocated for the earned income tax credit.
This bill will be referred to the Joint Survey Committee on Retirement Systems
for a detailed analysis, which will be printed as an appendix to this bill.

For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB58, s. 1 1Section 1. 20.515 (1) (ut) of the statutes is amended to read:
AB58,5,62 20.515 (1) (ut) Health insurance data collection and analysis and other
3consulting services
contracts. From the public employee trust fund, the amounts in
4the schedule for the costs of contracting for insurance data collection and analysis
5services under ss. 40.03 (6) (j) and 153.05 (2r) and other consulting services contracts
6under s. 40.03 (6) (j)
.
AB58, s. 2 7Section 2. 20.866 (2) (xf) of the statutes is amended to read:
AB58,5,188 20.866 (2) (xf) Building commission; refunding tax-supported and
9self-amortizing general obligation debt
incurred before July 1, 2011. From the
10capital improvement fund, a sum sufficient to refund the whole or any part of any
11unpaid indebtedness used to finance tax-supported or self-amortizing facilities.
12The state may contract public debt in an amount not to exceed $309,000,000
13$474,000,000 for this purpose. Such indebtedness shall be construed to include any
14premium and interest payable with respect thereto. Debt incurred by this paragraph
15shall be incurred before July 1, 2011, and shall be repaid under the appropriations
16providing for the retirement of public debt incurred for tax-supported and
17self-amortizing facilities in proportional amounts to the purposes for which the debt
18was refinanced.
AB58, s. 3 19Section 3. 40.02 (25) (b) 2. of the statutes is amended to read:
AB58,6,3
140.02 (25) (b) 2. Any person employed as a teaching assistant or graduate
2assistant and other employees-in-training as are designated by the board of regents
3of the university, who are employed on at least a one-third full-time basis.
AB58, s. 4 4Section 4. 40.03 (6) (c) of the statutes is amended to read:
AB58,6,165 40.03 (6) (c) Shall not enter into any agreements to modify or expand group
6insurance coverage in a manner which conflicts with this chapter or rules of the
7department or materially affects the level of premiums required to be paid by the
8state or its employees, or the level of benefits to be provided, under any group
9insurance coverage. This restriction shall not be construed to prevent modifications
10required by law, prohibit the group insurance board from modifying the standard
11plan to establish a more cost effective benefit plan design or providing optional
12insurance coverages as alternatives to the standard insurance coverage when any
13excess of required premium over the premium for the standard coverage is paid by
14the employee, prohibit the group insurance board from encouraging participation in
15wellness or disease management programs,
or prohibit the group insurance board
16from providing other plans as authorized under par. (b).
AB58, s. 5 17Section 5. 40.03 (6) (j) of the statutes is amended to read:
AB58,6,2218 40.03 (6) (j) May contract with the department of health services and may
19contract with other public or private entities for data collection and analysis services
20related to health maintenance organizations and insurance companies that provide
21health insurance to state employees, as well as for any other consulting services
22related to plans offered by the group insurance board
.
AB58, s. 6 23Section 6. 40.04 (2) (a) of the statutes is amended to read:
AB58,7,424 40.04 (2) (a) An administrative account shall be maintained within the fund
25from which administrative costs of the department shall be paid, except charges for

1services performed by the investment board, costs of medical and vocational
2evaluations used in determinations of eligibility for benefits under ss. 40.61, 40.63
3and 40.65 and costs of contracting for insurance data collection and analysis services
4and other consulting services under s. 40.03 (6) (j).
AB58, s. 7 5Section 7. 40.04 (2) (e) of the statutes is amended to read:
AB58,7,86 40.04 (2) (e) The costs of contracting for insurance data collection and analysis
7services and other consulting services under s. 40.03 (6) (j) shall be paid from the
8appropriation under s. 20.515 (1) (ut).
AB58, s. 8 9Section 8. 40.05 (1) (a) (intro.) of the statutes is amended to read:
AB58,7,1010 40.05 (1) (a) (intro.) Except as provided in Subject to par. (b) and sub. (2n):
AB58, s. 9 11Section 9. 40.05 (1) (a) 1. of the statutes is amended to read:
AB58,7,1412 40.05 (1) (a) 1. For each participating employee not otherwise specified, 5% of
13each payment of earnings
an amount equal to one-half of all actuarially required
14contributions, as approved by the board under s. 40.03 (1) (e)
.
AB58, s. 10 15Section 10. 40.05 (1) (a) 2. of the statutes is amended to read:
AB58,7,1916 40.05 (1) (a) 2. For each participating employee whose formula rate is
17determined under s. 40.23 (2m) (e) 2., 5.5% of each payment of earnings an amount
18equal to one-half of all actuarially required contributions, as approved by the board
19under s. 40.03 (1) (e)
.
AB58, s. 11 20Section 11. 40.05 (1) (a) 3. of the statutes is amended to read:
AB58,7,2321 40.05 (1) (a) 3. For each participating employee whose formula rate is
22determined under s. 40.23 (2m) (e) 3., 6% of each payment of earnings the percentage
23of earnings paid by a participating employee under subd. 1
.
AB58, s. 12 24Section 12. 40.05 (1) (a) 4. of the statutes is amended to read:
AB58,8,3
140.05 (1) (a) 4. For each participating employee whose formula rate is
2determined under s. 40.23 (2m) (e) 4., 8% of each payment of earnings the percentage
3of earnings paid by a participating employee under subd. 1
.
AB58, s. 13 4Section 13. 40.05 (2m) of the statutes is repealed.
AB58, s. 14 5Section 14. 40.05 (2n) of the statutes is repealed.
AB58, s. 15 6Section 15. 40.05 (4) (ag) 1. and 2. of the statutes are repealed and recreated
7to read:
AB58,8,118 40.05 (4) (ag) 1. For insured part-time employees other than employees
9specified in s. 40.02 (25) (b) 2., including those in project positions as defined in s.
10230.27 (1), who are appointed to work less than 1,566 hours per year, an amount
11determined annually by the director of the office of state employment relations.
AB58,8,1612 2. For eligible employees not specified in subd. 1. and s. 40.02 (25) (b) 2., an
13amount not more than 88 percent of the average premium cost of plans offered in the
14tier with the lowest employee premium cost under s. 40.51 (6). Annually, the director
15of the office of state employment relations shall establish the amount that the
16employer is required to pay under this subdivision.
AB58, s. 16 17Section 16. 40.05 (4) (ar) of the statutes is repealed.
AB58, s. 17 18Section 17. 40.05 (4) (c) of the statutes is amended to read:
AB58,8,2219 40.05 (4) (c) The employer shall contribute toward the payment of premiums
20for the plan established under s. 40.52 (3) not more than the percentage of premium
21paid by the employer for health insurance coverage under par. (ag) 2
the amount
22established under s. 40.52 (3)
.
AB58, s. 18 23Section 18. 40.23 (2m) (e) 2. of the statutes is amended to read:
AB58,9,424 40.23 (2m) (e) 2. For each participant for creditable service as an elected official
25or as an executive participating employee that is performed before January 1, 2000,

12.165%; for such creditable service that is performed on or after January 1, 2000, but
2before the effective date of this subdivision .... [LRB inserts date],
2%; and for such
3creditable service that is performed on or after the effective date of this subdivision
4.... [LRB inserts date], 1.6%
.
AB58, s. 19 5Section 19. 40.32 (1) of the statutes is amended to read:
AB58,9,126 40.32 (1) The sum of all contributions allocated to a participant's account under
7each defined contribution plan sponsored by the employer, including all employer
8contributions and picked-up contributions credited with interest at the effective rate
9under ss. 40.04 (4) (a) and (5) (b) and 40.05 (2) (g) and all employee contributions
10made under ss. 40.02 (17) and 40.05 (1) and (2m), may not in any calendar year
11exceed the maximum contribution limitation established under section 415 (c) of the
12Internal Revenue Code.
AB58, s. 20 13Section 20. 40.51 (7) of the statutes is amended to read:
AB58,9,2414 40.51 (7) Any employer, other than the state, may offer to all of its employees
15a health care coverage plan through a program offered by the group insurance board.
16Notwithstanding sub. (2) and ss. 40.05 (4) and 40.52 (1), the department may by rule
17establish different eligibility standards or contribution requirements for such
18employees and employers and may by rule limit the categories of employers, other
19than the state, which may be included as participating employers under this
20subchapter. Beginning on January 1, 2012, except as otherwise provided in a
21collective bargaining agreement under subch. IV of ch. 111, an employer may not
22offer a health care coverage plan to its employees under this subsection if the
23employer pays more than 88 percent of the average premium cost of plans offered in
24any tier with the lowest employee premium cost under this subsection.
AB58, s. 21 25Section 21. 40.52 (3) of the statutes is amended to read:
AB58,10,9
140.52 (3) The group insurance board, after consulting with the board of regents
2of the University of Wisconsin System, shall establish the terms of a health insurance
3plan for graduate assistants, for teaching assistants, and for employees-in-training
4designated by the board of regents, who are employed on at least a one-third
5full-time basis and for teachers who are employed on at least a one-third full-time
6basis by the University of Wisconsin System with an expected duration of
7employment of at least 6 months but less than one year. Annually, the director of the
8office of state employment relations shall establish the amount that the employer is
9required to pay in premium costs under this subsection.
AB58, s. 22 10Section 22. 49.175 (1) (zh) of the statutes is amended to read:
AB58,10,1411 49.175 (1) (zh) Earned income tax credit supplement. For the transfer of
12moneys from the appropriation account under s. 20.437 (2) (md) to the appropriation
13account under s. 20.835 (2) (kf) for the earned income tax credit, $6,664,200 in fiscal
14year 2009-10 and $6,664,200 $43,664,200 in fiscal year 2010-2011.
AB58, s. 23 15Section 23. 59.875 of the statutes is created to read:
AB58,10,18 1659.875 Payment of contributions in an employee retirement system of
17populous counties.
(1) In this section, "county" means any county having a
18population of 500,000 or more.
AB58,10,24 19(2) Beginning on the effective date of this subsection .... [LRB inserts date], in
20any employee retirement system of a county, except as otherwise provided in a
21collective bargaining agreement entered into under subch. IV of ch. 111, employees
22shall pay half of all actuarially required contributions for funding benefits under the
23retirement system. The employer may not pay on behalf of an employee any of the
24employee's share of the actuarially required contributions.
AB58, s. 24 25Section 24. 62.623 of the statutes is created to read:
AB58,11,7
162.623 Payment of contributions in an employee retirement system of
2a 1st class city.
Beginning on the effective date of this section .... [LRB inserts date],
3in any employee retirement system of a 1st class city, except as otherwise provided
4in a collective bargaining agreement entered into under subch. IV of ch. 111,
5employees shall pay all employee required contributions for funding benefits under
6the retirement system. The employer may not pay on behalf of an employee any of
7the employee's share of the required contributions.
AB58, s. 25 8Section 25. 66.0518 of the statutes is created to read:
AB58,11,14 966.0518 Defined benefit pension plans. A local governmental unit, as
10defined in s. 66.0131 (1) (a), may not establish a defined benefit pension plan for its
11employees unless the plan requires the employees to pay half of all actuarially
12required contributions for funding benefits under the plan and prohibits the local
13governmental unit from paying on behalf of an employee any of the employee's share
14of the actuarially required contributions.
AB58, s. 26 15Section 26. 71.05 (6) (b) 47. of the statutes, as created by 2011 Wisconsin Act
165
, is amended to read:
AB58,12,1017 71.05 (6) (b) 47. An amount equal to the increase in the number of full-time
18equivalent employees employed by the taxpayer in this state during the taxable year,
19multiplied by $4,000 for a business with gross receipts of no greater than $5,000,000
20in the taxable year or $2,000 for a business with gross receipts greater than
21$5,000,000 in the taxable year. For purposes of this subdivision, the increase in the
22number of full-time equivalent employees employed by the taxpayer in this state
23during the taxable year is determined by subtracting from the number of full-time
24equivalent employees employed by the taxpayer in this state during the taxable year,
25as determined by computing the average employee count from the taxpayer's

1quarterly unemployment insurance reports or other information as required by the
2department for the taxable year, the number of full-time equivalent employees
3employed by the taxpayer in this state during the immediately preceding taxable
4year, as determined by computing the average employee count from the taxpayer's
5quarterly unemployment insurance reports or other information as required by the
6department for the immediately preceding taxable year. No person may claim a
7deduction under this subdivision if the person may claim a credit deduction under
8this subchapter based on the person relocating the person's business from another
9state to this state and in an amount equal to the person's tax liability. The
10department shall promulgate rules to administer this subdivision.
AB58, s. 27 11Section 27. 111.91 (1) (cm) of the statutes is amended to read:
AB58,12,1712 111.91 (1) (cm) Except as provided in sub. (2) (g) and (h) and ss. 40.02 (22) (e)
13and 40.23 (1) (f) 4., all laws governing the Wisconsin retirement system under ch. 40
14and all actions of the employer that are authorized under any such law which apply
15to nonrepresented individuals employed by the state shall apply to similarly situated
16employees, unless otherwise specifically provided in a collective bargaining
17agreement that applies to those employees.
AB58, s. 28 18Section 28. 111.91 (2) (g) of the statutes is repealed.
AB58, s. 29 19Section 29. 111.998 (1) (d) of the statutes is amended to read:
AB58,12,2520 111.998 (1) (d) Except as provided in sub. (2) (d) and (e) and ss. 40.02 (22) (e)
21and 40.23 (1) (f) 4., all laws governing the Wisconsin Retirement System under ch.
2240 and all actions of the board that are authorized under any such law which apply
23to nonrepresented individuals employed by the state shall apply to similarly situated
24employees, unless otherwise specifically provided in a collective bargaining
25agreement that applies to those employees.
AB58, s. 30
1Section 30. 111.998 (2) (d) of the statutes is repealed.
AB58, s. 31 2Section 31. 2009 Wisconsin Act 28, section 9222 (1d) is repealed.
AB58, s. 9115 3Section 9115. Nonstatutory provisions; Employee Trust Funds.
AB58,13,11 4(1) Allocation of certain excess reserves in the public employee trust fund
5to reduce employer health insurance costs during 2011.
Notwithstanding any
6action of the group insurance board under section 40.03 (6) (d) of the statutes, from
7reserve accounts established under section 20.515 (1) (r) of the statutes for group
8health insurance and pharmacy benefits for state employees, the secretary of
9employee trust funds shall allocate an amount equal to $28,000,000 to reduce
10employer costs for providing group health insurance for state employees for the
11period beginning on July 1, 2011, and ending on December 31, 2011.
AB58,13,15 12(2) Agreements to modify group insurance coverage for state employees.
13Section 40.03 (6) (c) of the statutes shall not apply to any agreements entered into
14by the group insurance board to modify group insurance coverage for the 2012 and
152013 calendar years.
AB58,13,2516 (3) Reductions in health care premium costs for health care coverage
17during 2012 calendar year.
The group insurance board shall design health care
18coverage plans for the 2012 calendar year that, after adjusting for any inflationary
19increase in health benefit costs, as determined by the group insurance board, reduces
20the average premium cost of plans offered in the tier with the lowest employee
21premium cost under section 40.51 (6) of the statutes by at least 5 percent from the
22cost of such plans offered during the 2011 calendar year. The group insurance board
23shall include copayments in the health care coverage plans for the 2012 calendar
24year and may require health risk assessments for state employees and participation
25in wellness or disease management programs.
AB58,14,9
1(4) Audit of dependent eligibility under benefit programs. If the department
2of employee trust funds determines that an audit of benefit programs administered
3by the department is necessary for the purpose of verifying the eligibility of
4dependents covered under the benefit programs, the department shall submit a
5written request to the secretary of administration to expend an amount not
6exceeding $700,000 from the appropriation account under section 20.515 (1) (w) of
7the statutes for the 2011-12 fiscal year to fund the cost of the audit. If the secretary
8of administration approves the request, the department of employee trust funds may
9proceed with the audit.
AB58,14,10 10(5) State employee health care coverage.
AB58,14,1311 (a) Notwithstanding section 40.05 (4) (ag) and (c) of the statutes, as affected by
12this act, beginning with health insurance premiums paid in April 2011, and ending
13with coverage for December 2011, all of the following shall apply:
AB58,14,22 141. Employees covered under section 40.05 (4) (ag) 2. of the statutes, as affected
15by this act, shall pay $84 a month for individual coverage and $208 a month for family
16coverage for health care coverage under any plan offered in the tier with the lowest
17employee premium cost under section 40.51 (6) of the statutes; $122 a month for
18individual coverage and $307 a month for family coverage for health care coverage
19under any plan offered in the tier with the next lowest employee premium cost under
20section 40.51 (6) of the statutes; and $226 a month for individual coverage and $567
21a month for family coverage for health care coverage under any plan offered in the
22tier with the highest employee premium cost under section 40.51 (6) of the statutes.
AB58,14,25 232. Eligible employees covered under section 40.02 (25) (b) 2. of the statutes, as
24affected by this act, shall pay 50 percent of the amounts required for employees under
25subdivision 1.
AB58,15,4
13. Employees covered under section 40.05 (4) (ag) 1. of the statutes, as affected
2by this act, and craft employees, as defined in section 111.81 (4) of the statutes, and
3related nonrepresented employees shall pay the same amounts that they are
4required to pay on the day before the effective date of this subdivision.
AB58,15,85 (b) If an employer is unable to modify payroll procedures in sufficient time to
6collect employees' increased share of the premium costs for health care coverage
7under paragraph (a), the employer shall recover all amounts that employees owe for
8the increased share of premium costs before July 1, 2011.
AB58,15,19 9(6) Employer and employee required contributions for 2011. Notwithstanding
10the employer and employee required contributions rates established for 2011 under
11section 40.05 (1) and (2), 2009 stats., beginning on the first day of the first pay period
12after March 13, 2011, the employee required contributions under section 40.05 (1) (a)
13of the statutes, as affected by this act, shall be in effect for the remainder of 2011, and
14the employer required contributions under section 40.05 (2) of the statutes shall be
15adjusted to reflect the increases in employee required contributions for the
16remainder of 2011. If an employer is unable to modify payroll procedures in sufficient
17time to collect the increased employee required contributions before the first day of
18the first pay period after March 13, 2011, the employer shall recover all amounts that
19employees owe before July 1, 2011.
AB58, s. 9155 20Section 9155. Nonstatutory provisions; Other.
AB58,15,2221 (1) Section 20.003 (4) shall not apply to the actions of the legislature in enacting
22this act.
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