AB40,442,1513 38.33 (1) (intro.) From the appropriation under s. 20.292 (1) (eg) (f), the board
14shall may award grants to district boards to establish faculty development programs.
15The programs shall promote all of the following:
AB40,657 16Section 657. 38.38 of the statutes is amended to read:
AB40,442,21 1738.38 Services for handicapped students. Annually the board shall may
18award a grant to each district board, from the appropriation under s. 20.292 (1) (de)
19(f), to assist in funding transitional services for handicapped students. Each district
20board shall receive an amount equal to one-sixteenth of the amount appropriated
21and
shall contribute matching funds equal to 25% of the amount awarded.
AB40,658 22Section 658. 38.40 (4m) (a) of the statutes is amended to read:
AB40,443,523 38.40 (4m) (a) The board may approve an innovative school-to-work program
24provided by a nonprofit organization for children at risk, as defined in s. 118.153 (1)
25(a), in a county having a population of 500,000 or more to assist those children at risk

1in acquiring employability skills and occupational-specific competencies before
2leaving high school. If the board approves a program under this paragraph, the
3board may award a grant, from the appropriation under s. 20.292 (1) (ef) (f), to the
4nonprofit organization providing the program and the nonprofit organization shall
5use the funds received under the grant to provide the program.
AB40,659 6Section 659. 38.41 (3) (a) of the statutes is amended to read:
AB40,443,87 38.41 (3) (a) The board shall award grants Amounts awarded under this section
8shall be paid from the appropriation under s. 20.292 (1) (eh) (f).
AB40,660 9Section 660. 38.50 (title) of the statutes is renumbered 440.55 (title).
AB40,661 10Section 661. 38.50 (1) (intro.) of the statutes is renumbered 440.55 (1) (intro.).
AB40,662 11Section 662. 38.50 (1) (a) of the statutes is renumbered 440.55 (1) (a) and
12amended to read:
AB40,443,1413 440.55 (1) (a) Notwithstanding s. 38.01 (2), "board" "Board" means the
14educational approval board.
AB40,663 15Section 663. 38.50 (1) (b) of the statutes is renumbered 440.55 (1) (b).
AB40,664 16Section 664. 38.50 (1) (c) of the statutes is renumbered 440.55 (1) (c).
AB40,665 17Section 665. 38.50 (1) (d) of the statutes is renumbered 440.55 (1) (d).
AB40,666 18Section 666. 38.50 (1) (e) of the statutes is renumbered 440.55 (1) (e).
AB40,667 19Section 667. 38.50 (1) (f) of the statutes is renumbered 440.55 (1) (f).
AB40,668 20Section 668. 38.50 (1) (g) of the statutes is renumbered 440.55 (1) (g).
AB40,669 21Section 669. 38.50 (2) of the statutes is renumbered 440.55 (2).
AB40,670 22Section 670. 38.50 (3) of the statutes is renumbered 440.55 (3).
AB40,671 23Section 671. 38.50 (5) of the statutes is renumbered 440.55 (5) and amended
24to read:
AB40,444,6
1440.55 (5) Employees, quarters. The board shall employ a person to perform
2the duties of an executive secretary and any other persons under the classified
3service that may be necessary to carry out the board's responsibilities. The person
4performing the duties of the executive secretary shall be in charge of the
5administrative functions of the board. The board shall, to the maximum extent
6practicable, keep its office with the technical college system board department.
AB40,672 7Section 672. 38.50 (7) of the statutes is renumbered 440.55 (7).
AB40,673 8Section 673. 38.50 (8) of the statutes is renumbered 440.55 (8).
AB40,674 9Section 674. 38.50 (10) (title) of the statutes is renumbered 440.55 (10) (title).
AB40,675 10Section 675. 38.50 (10) (a) of the statutes is renumbered 440.55 (10) (a) and
11amended to read:
AB40,444,2112 440.55 (10) (a) Authority. All proprietary schools shall be examined and
13approved by the board before operating in this state. Approval shall be granted to
14schools meeting the criteria established by the board for a period not to exceed one
15year. No school may advertise in this state unless approved by the board. All
16approved schools shall submit quarterly reports, including information on
17enrollment, number of teachers and their qualifications, course offerings, number of
18graduates, number of graduates successfully employed, and such other information
19as the board considers necessary. If a school closure results in losses to students,
20parents, or sponsors, the board may authorize the full or partial payment of those
21losses from the appropriation under s. 20.292 (2) 20.165 (3) (gm).
AB40,676 22Section 676. 38.50 (10) (b) of the statutes is renumbered 440.55 (10) (b).
AB40,677 23Section 677. 38.50 (10) (c) of the statutes is renumbered 440.55 (10) (c).
AB40,678 24Section 678. 38.50 (10) (cm) of the statutes is renumbered 440.55 (10) (cm).
AB40,679 25Section 679. 38.50 (10) (d) of the statutes is renumbered 440.55 (10) (d).
AB40,680
1Section 680. 38.50 (10) (e) of the statutes is renumbered 440.55 (10) (e).
AB40,681 2Section 681. 38.50 (10) (f) of the statutes is renumbered 440.55 (10) (f).
AB40,682 3Section 682. 38.50 (11) (title) of the statutes is renumbered 440.55 (11) (title).
AB40,683 4Section 683. 38.50 (11) (a) of the statutes is renumbered 440.55 (11) (a).
AB40,684 5Section 684. 38.50 (11) (b) of the statutes is renumbered 440.55 (11) (b).
AB40,685 6Section 685. 38.50 (11) (c) of the statutes is renumbered 440.55 (11) (c).
AB40,686 7Section 686. 38.50 (11) (d) of the statutes is renumbered 440.55 (11) (d) and
8amended to read:
AB40,445,199 440.55 (11) (d) The board or association shall preserve a student record that
10comes into the possession of the board or association under par. (b) 1. or 2. and shall
11keep the student record confidential as provided under 20 USC 1232g and 34 CFR
12part 99
. A student record in the possession of the board is not open to public
13inspection or copying under s. 19.35 (1). Upon request of the person who is the subject
14of a student record or an authorized representative of that person, the board or
15association shall provide a copy of the student record to the requester. The board or
16association may charge a fee for providing a copy of a student record. The fee shall
17be based on the administrative cost of taking possession of, preserving, and providing
18the copy of the student record. All fees collected by the board under this paragraph
19shall be credited to the appropriation account under s. 20.292 (2) 20.165 (3) (i).
AB40,687 20Section 687. 38.50 (12) of the statutes is renumbered 440.55 (12).
AB40,688 21Section 688. 38.50 (13) (title) of the statutes is renumbered 440.55 (13) (title).
AB40,689 22Section 689. 38.50 (13) (a) of the statutes is renumbered 440.55 (13) (a).
AB40,690 23Section 690. 38.50 (13) (b) of the statutes is renumbered 440.55 (13) (b).
AB40,691 24Section 691. 38.50 (13) (c) of the statutes is renumbered 440.55 (13) (c).
AB40,692
1Section 692. 38.50 (13) (d) of the statutes is renumbered 440.55 (13) (d) and
2amended to read:
AB40,446,73 440.55 (13) (d) The board may charge a fee for evaluating an educational
4institution under par. (a) 2. e. in an amount that is sufficient to cover all costs that
5the board incurs in evaluating the institution. All fees collected by the board under
6this paragraph shall be credited to the appropriation account under s. 20.292 (2)
720.165 (3) (g).
AB40,693 8Section 693. 39.435 (7) (a) 1. of the statutes is amended to read:
AB40,446,129 39.435 (7) (a) 1. For purposes of calculating the amount to be appropriated
10under s. 20.235 (1) (fe) for fiscal year 2013-14 2015-16, "base amount" means the
11amount shown in the schedule under s. 20.005 for that appropriation for fiscal year
122012-13 2014-15.
AB40,694 13Section 694. 39.435 (7) (a) 2. of the statutes is amended to read:
AB40,446,1714 39.435 (7) (a) 2. For purposes of calculating the amount to be appropriated
15under s. 20.235 (1) (fe) for each fiscal year after fiscal year 2013-14 2015-16, "base
16amount" means the appropriation amount calculated under par. (b) for the previous
17fiscal year.
AB40,695 18Section 695. 39.435 (7) (b) (intro.) of the statutes is amended to read:
AB40,446,2119 39.435 (7) (b) (intro.) Biennially, beginning on February 1, 2013 2015, the board
20shall calculate the amounts to be appropriated under s. 20.235 (1) (fe) for the next
21biennium as follows:
AB40,696 22Section 696. 40.015 (1) of the statutes is amended to read:
AB40,446,2523 40.015 (1) The Wisconsin retirement system is established as a governmental
24plan and as a qualified plan for federal income tax purposes under the internal
25revenue code
Internal Revenue Code and shall be so maintained and administered.
AB40,697
1Section 697. 40.015 (2) of the statutes is amended to read:
AB40,447,62 40.015 (2) No benefit plan authorized under this chapter may be administered
3in a manner which violates an internal revenue code Internal Revenue Code
4provision that authorizes or regulates that benefit plan or which would cause an
5otherwise tax exempt benefit to become taxable under the internal revenue code
6Internal Revenue Code.
AB40,698 7Section 698. 40.015 (3) of the statutes is created to read:
AB40,447,98 40.015 (3) For the purposes of compliance with the Internal Revenue Code, the
9plan year is January 1 through December 31.
AB40,699 10Section 699. 40.02 (13m) of the statutes is created to read:
AB40,447,1511 40.02 (13m) "Craft employee" means a state employee who is a skilled
12journeyman craftsman, including the skilled journeyman craftsman's apprentices
13and helpers, but does not include employees who are not in direct line of progression
14in the craft. Craft employees may be either nonrepresented or in a collective
15bargaining unit for which a representative is recognized or certified under ch. 111.
AB40,700 16Section 700. 40.02 (18g) of the statutes is amended to read:
AB40,447,2217 40.02 (18g) "Deferred compensation plan" means a plan which is in accordance
18with section 457 of the internal revenue code Internal Revenue Code, under which
19an employer executes an agreement by which an employee voluntarily agrees to
20defer a part of gross compensation for payment at a later date. Deferred
21compensation plan does not include annuity plans specified under section 403 (b) of
22the internal revenue code Internal Revenue Code.
AB40,701 23Section 701. 40.02 (31) of the statutes is created to read:
AB40,448,724 40.02 (31) "Federal annual compensation limits" means any annual
25compensation limit under section 401 (a) (17) of the Internal Revenue Code, as

1adjusted for any cost of living increases under section 401 (a) (17) (B) of the Internal
2Revenue Code, but only with respect to plan years beginning after December 31,
31995, and only with respect to individuals who first became participating employees
4in plan years beginning after December 31, 1995. This subsection shall be applied
5in compliance with section 401 (a) (31) of the Internal Revenue Code pursuant to any
6applicable federal regulations or guidance adopted under the Internal Revenue
7Code.
AB40,702 8Section 702. 40.02 (33) (a) 1. of the statutes is amended to read:
AB40,448,159 40.02 (33) (a) 1. The participant's total earnings received or considered to be
10received under sub. (22) (e), (ef), or (em) and for which contributions are made under
11s. 40.05 (1) and (2) during the 3 annual earnings periods (excluding any period more
12than 3 years prior to the effective date for any participating employer) in which the
13earnings were the highest, subject to the federal annual compensation limits under
1426 USC 401 (a) (17) for a participating employee who first becomes a participating
15employee on or after January 1, 1996
; by
AB40,703 16Section 703. 40.02 (33) (b) 1. of the statutes is amended to read:
AB40,448,2517 40.02 (33) (b) 1. For a state elected official who is prohibited by law from
18receiving an increase in compensation during the official's term of office and who so
19elects, one-twelfth of the annual salary, subject to the federal annual compensation
20limits under 26 USC 401 (a) (17) for a participating employee who first becomes a
21participating employee on or after January 1, 1996
, which would have been payable
22to the participant during the last completed month in which the participant was a
23participating employee in such a position if the participant had not been prohibited
24by law from receiving an increase in salary during his or her term of office, but only
25with respect to service as a state elected official.
AB40,704
1Section 704. 40.02 (33) (c) of the statutes is amended to read:
AB40,449,62 40.02 (33) (c) For a participant who makes an election under s. 40.30 (2), the
3monthly rate of earnings applicable under par. (a) or (b), increased as provided under
4s. 40.30 (4) (b) but subject to the federal annual compensation limits under 26 USC
5401 (a) (17) for a participating employee who first becomes a participating employee
6on or after January 1, 1996
.
AB40,705 7Section 705. 40.02 (37m) of the statutes is created to read:
AB40,449,98 40.02 (37m) "Health savings account" means a health savings account
9described in 26 USC 223.
AB40,706 10Section 706. 40.02 (37r) of the statutes is created to read:
AB40,449,1211 40.02 (37r) "High-deductible health plan" has the meaning given in 26 USC
12223
(c) (2).
AB40,707 13Section 707. 40.02 (39m) of the statutes is amended to read:
AB40,449,1714 40.02 (39m) "Internal revenue code Revenue Code" means the federal internal
15revenue code
Internal Revenue Code of 1986, under Title 26, USC, as amended, and
16applicable federal regulations adopted by the federal department of the treasury,
17including temporary regulations
.
AB40,708 18Section 708. 40.02 (48g) of the statutes is renumbered 40.02 (25g) and
19amended to read:
AB40,449,2120 40.02 (25g) "Public Eligible retired public safety officer" has the meaning given
21in 26 USC section 402 (I) (l) (4) (C) (B) of the Internal Revenue Code.
AB40,709 22Section 709. 40.02 (48m) (e) of the statutes is amended to read:
AB40,450,223 40.02 (48m) (e) The determination of the alternate payee share does not
24require that benefits be paid to the alternate payee if those benefits are also required
25to be paid to another alternate payee or to the internal revenue service under a lien

1placed on the participant's account under 26 USC section 64 of the Internal Revenue
2Code
.
AB40,710 3Section 710. 40.03 (1) (am) of the statutes is amended to read:
AB40,450,84 40.03 (1) (am) Shall ensure that the Wisconsin retirement system complies
5with the internal revenue code Internal Revenue Code as a qualified plan for income
6tax purposes and shall ensure that each benefit plan is administered in a manner
7consistent with all internal revenue code Internal Revenue Code provisions that
8authorize and regulate the benefit plan.
AB40,711 9Section 711. 40.03 (2) (ig) of the statutes is amended to read:
AB40,450,1310 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 VI and health
13savings accounts under subch. IV
.
AB40,712 14Section 712. 40.03 (2) (t) of the statutes is amended to read:
AB40,450,1915 40.03 (2) (t) Shall ensure that the Wisconsin retirement system complies with
16the internal revenue code Internal Revenue Code as a qualified plan for income tax
17purposes and shall ensure that each benefit plan is administered in a manner
18consistent with all internal revenue code Internal Revenue Code provisions that
19authorize and regulate the benefit plan.
AB40,713 20Section 713. 40.03 (2) (vm) of the statutes is created to read:
AB40,450,2421 40.03 (2) (vm) Annually, before July 1, shall submit a report to the secretary
22of administration and the joint committee on finance on the department's progress
23in modernizing its business processes and integrating its information technology
24systems.
AB40,714 25Section 714. 40.03 (6) (c) of the statutes is repealed and recreated to read:
AB40,451,9
140.03 (6) (c) Shall not enter into any agreement to modify or expand benefits
2under any group insurance plan, unless the modification or expansion is required by
3law or would maintain or reduce premium costs for the state or its employees in the
4current or any future year. A reduction in premium costs in future years includes
5a reduction in any increase in premium costs that would have otherwise occurred
6without the modification or expansion. This paragraph shall not be construed to
7prohibit the group insurance board from encouraging participation in wellness or
8disease management programs or providing optional coverages if the premium costs
9for those coverages are paid by the employees.
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