AB40: Bill Text

AB40,733 Section 733. 40.07 (1r) of the statutes is created to read:

AB40,456,19 40.07 (1r) Upon request of the department of revenue, the department may disclose information, including social security numbers, to the department of revenue concerning an annuity only for the following purposes:

AB40,456,20 (a) To administer the payment of state taxes.

AB40,456,21 (am) To aid in collecting debts owed to the department of revenue.

AB40,456,23 (b) To locate participants, or the assets of participants, who have failed to file tax returns, underreported their taxable income, or who are delinquent debtors.

AB40,456,24 (c) To identify fraudulent tax returns and credit claims.

AB40,456,25 (d) To provide information for tax-related prosecutions.

AB40,734 Section 734. 40.08 (2) (b) of the statutes is amended to read:

AB40,457,6 40.08 (2) (b) If permitted under a deferred compensation plan established under subch. VII, insurance premiums for health or long-term care insurance coverage for a an eligible retired public safety officer may be deducted from an amount distributed under a deferred compensation plan and paid directly to an insurer.

AB40,735 Section 735. 40.08 (14) of the statutes is amended to read:

AB40,457,21 40.08 (14) Rollovers to other retirement plans. If a participant who is entitled to receive a lump sum payment or a monthly annuity certain under s. 40.24 (1) (f) for which the participant has specified a term of less than 120 months or an annuity certain of less than 10 years in duration from the Wisconsin retirement system and who has an account established under any other retirement plan located in the United States so directs in writing, on a form prescribed by the department, the department shall pay the lump sum payment or the monthly annuity directly to the participant's account under that other retirement plan for credit under that other retirement plan. The department shall cease payment of the monthly annuity payments to the annuitant's account under the other retirement plan within 30 days of the written request of the annuitant or written notice of the annuitant's death. This subsection shall be applied in compliance with section 401 (a) (31) of the Internal Revenue Code pursuant to any applicable federal regulations or guidance adopted under the Internal Revenue Code.

AB40,736 Section 736. 40.19 (5) of the statutes is created to read:

AB40,458,9 40.19 (5) For the purpose of complying with section 401 (a) (7) of the Internal Revenue Code, a participant shall be 100 percent vested in, and have a nonforfeitable right to, his or her retirement benefits upon attaining eligibility for the retirement benefits. A participant shall also be 100 percent vested in, and have a nonforfeitable right to, his or her accumulated employee contributions at all times. In the event of a termination of, or a complete discontinuance of employer contributions to the Wisconsin retirement system, a participant shall be 100 percent vested in, and have a nonforfeitable right to, his or her accrued retirement benefits. All such benefits are nonforfeitable to the extent funded. For the purpose of complying with section 401 (a) (8) of the Internal Revenue Code, any forfeitures of benefits by participants or former participants of the Wisconsin retirement system may not be used to pay benefit increases.

AB40,737 Section 737. 40.22 (2) (a) of the statutes is amended to read:

AB40,458,14 40.22 (2) (a) Except as provided in sub. (2m), the employee was initially employed by a participating employer a participating employee before July 1, 2011, and is not expected to work at least one-third of what is considered full-time employment by the department, as determined by rule.

AB40,738 Section 738. 40.22 (2m) (intro.) of the statutes is amended to read:

AB40,458,22 40.22 (2m) (intro.) An employee who was initially employed by a participating employer a participating employee before July 1, 2011, who is not expected to work at least one-third of what is considered full-time employment by the department, as determined by rule, and who is not otherwise excluded under sub. (2) from becoming a participating employee shall become a participating employee if he or she is subsequently employed by the state agency or other participating employer for either of the following periods:

AB40,739 Section 739. 40.23 (4) (a) of the statutes is amended to read:

AB40,459,7 40.23 (4) (a) Subject to all requirements under the internal revenue code section 401 (a) (9) of the Internal Revenue Code and federal regulations applicable to that section, which relate to a governmental plan, as defined in section 414 (d) of the Internal Revenue Code, the department shall distribute to the participant the entire amount that is credited to the account of a participant under the Wisconsin retirement system no later than the required beginning date, unless the department distributes this amount as an annuity or in more than one payment. If the department distributes this amount as an annuity or in more than one payment, the department shall begin the distribution no later than the required beginning date.

AB40,740 Section 740. 40.23 (4) (b) (intro.) of the statutes is amended to read:

AB40,459,14 40.23 (4) (b) (intro.) In the calendar year immediately preceding the calendar year of a participant's required beginning date, if the department distributes the amount that is credited to the account of a participant under the Wisconsin retirement system in a form other than as a lump sum payment, the department, subject to all requirements under the internal revenue code Internal Revenue Code, shall calculate the distribution to the participant according to one of the following:

AB40,741 Section 741. 40.23 (4) (e) of the statutes is amended to read:

AB40,459,19 40.23 (4) (e) 1. Subject to subds. 2. to 4. and section 401 (a) (9) of the Internal Revenue Code, if a participant dies before the distribution of benefits has commenced and the participant's beneficiary is the spouse or domestic partner, the department shall begin the distribution within 5 years after the date of the participant's death.

AB40,459,23 2. If Subject to section 401 (a) (9) of the Internal Revenue Code, if the spouse or domestic partner files a subsequent beneficiary designation with the department, the payment of the distribution may be deferred until the January 1 of the year in which the participant would have attained the age of 70.5 years.

AB40,460,2 3. If Subject to section 401 (a) (9) of the Internal Revenue Code, if the spouse or domestic partner does not apply for a distribution, the distribution shall begin as an automatic distribution as provided under subd. 1. or under par. (c), whichever distribution date is earlier.

AB40,460,6 4. If Subject to section 401 (a) (9) of the Internal Revenue Code, if the spouse or domestic partner dies, but has designated a new beneficiary, the birth date of the spouse or domestic partner shall be used for the purposes of determining the required beginning date.

AB40,460,9 5. The department shall specify by rule all procedures relating to an automatic distribution to the spouse or domestic partner. These rules shall comply with the internal revenue code Internal Revenue Code.

AB40,742 Section 742. 40.23 (4) (f) (intro.) of the statutes is amended to read:

AB40,460,14 40.23 (4) (f) (intro.) If a participant dies before the distribution of benefits has commenced and the participant's beneficiary is not the spouse or domestic partner beneficiary cannot delay the automatic payment of benefits under section 401 (a) (9) of the Internal Revenue Code, the beneficiary shall do one of the following:

AB40,743 Section 743. 40.23 (4) (h) of the statutes is created to read:

AB40,460,19 40.23 (4) (h) Death and disability benefits provided under this chapter are limited by the incidental benefit rule under section 401 (a) (9) (G) of the Internal Revenue Code and applicable federal regulations and guidance adopted under the Internal Revenue Code.

AB40,744 Section 744. 40.23 (4) (i) of the statutes is created to read:

AB40,460,22 40.23 (4) (i) Distributions of benefits shall conform to a reasonable and good faith interpretation of section 401 (a) (9) of the Internal Revenue Code.

AB40,745 Section 745. 40.23 (4) (j) of the statutes is created to read:

AB40,460,25 40.23 (4) (j) Pursuant to a qualified domestic relations order, the department may establish separate benefits for a participant and an alternate payee.

AB40,746 Section 746. 40.26 (1) of the statutes is amended to read:

AB40,461,9 40.26 (1) Except as provided in sub. (1m) and ss. 40.05 (2) (g) 2. and 40.23 (1) (am), if a participant receiving a retirement annuity, or a disability annuitant who has attained his or her normal retirement date, receives earnings that are subject to s. 40.05 (1) or that would be subject to s. 40.05 (1) except for the exclusion specified in s. 40.22 (2) (L), the annuity shall be terminated and no annuity payment shall be payable after the month in which the participant files with the department a written election to be included within the provisions of the Wisconsin retirement system as a participating employee.

AB40,747 Section 747. 40.26 (1m) of the statutes is created to read:

AB40,461,17 40.26 (1m) If a participant receiving a retirement annuity, or a disability annuitant who has attained his or her normal retirement date, is employed in a position in covered employment in which he or she is expected to work at least two-thirds of what is considered full-time employment by the department, as determined under s. 40.22 (2r), the participant's annuity shall be terminated and no annuity payment shall be payable until after the participant terminates covered employment.

AB40,748 Section 748. 40.26 (2) (intro.) of the statutes is amended to read:

AB40,461,21 40.26 (2) (intro.) Upon termination of an annuity under sub. (1) or (1m), the retirement account of the participant whose annuity is so terminated shall be reestablished on the following basis:

AB40,749 Section 749. 40.26 (5) (intro.) of the statutes is amended to read:

AB40,462,2 40.26 (5) (intro.) If a participant applies for an annuity or lump sum payment during the period in which less than 30 75 days have elapsed between the termination of employment with a participating employer and becoming a participating employee with any participating employer, all of the following shall apply:

AB40,750 Section 750. 40.30 (4) (b) of the statutes is amended to read:

AB40,462,16 40.30 (4) (b) Subject to the federal annual compensation limits under 26 USC 401 (a) (17) for a participating employee who first becomes a participating employee on or after January 1, 1996, the final average salary or final average earnings used in the benefit formula computation for each retirement system under par. (a) shall be the individual's final average salary or final average earnings under the respective retirement system, determined in accordance with the provisions of that retirement system based on the earnings covered by that retirement system and on all service permitted under that retirement system to be used in determining the final average salary or final average earnings, increased by the percentage increase in the average of the total wages, as determined under 42 USC 415 (b) (3) (A), between the date on which the individual terminated all employment covered by that retirement system and the date on which the individual terminated all employment covered by any of those retirement systems.

AB40,751 Section 751. 40.31 (1) of the statutes is amended to read:

AB40,463,2 40.31 (1) General limitation. The maximum retirement benefits payable to a participant in a calendar year, excluding benefits attributable to contributions subject to any limitations under s. 40.23 (2) (a), (2m) (c) and (3) the limit under s. 40.32, may not exceed the maximum benefit limitation established under section 415 (b) of the Internal Revenue Code, as adjusted under section 415 (d) of the Internal Revenue Code and any applicable regulations or guidance adopted under the Internal Revenue Code, except that the limit for an individual who first became a participant before January 1, 1990, may not be less than the accrued benefits of the participant, as determined without regard to any changes to the retirement system after October 14, 1987.

AB40,752 Section 752. 40.32 (1) of the statutes is amended to read:

AB40,463,12 40.32 (1) The sum of all employee post-tax contributions allocated to a participant's account under each defined contribution plan sponsored by the employer, including all employer contributions and picked-up contributions credited with interest at the effective rate under ss. 40.04 (4) (a) and (5) (b) and 40.05 (2) (g) and all employee contributions made under ss. 40.02 (17) and 40.05 (1), may not in any calendar year exceed the maximum contribution limitation established under section 415 (c) of the Internal Revenue Code, as adjusted under section 415 (d) of the Internal Revenue Code and any applicable regulations adopted by the federal department of the treasury.

AB40,753 Section 753. 40.515 of the statutes is created to read:

AB40,463,23 40.515 Health savings accounts; high-deductible health plan. (1) In addition to the health care coverage plans offered under s. 40.51 (6), beginning on January 1, 2015, the group insurance board shall offer to all state employees the option of receiving health care coverage through a high-deductible health plan and the establishment of a health savings account. Under this option, each employee shall receive health care coverage through a high-deductible health plan. The state shall make contributions into each employee's health savings account in an amount specified by the director of the office of state employment relations under s. 40.05 (4) (ah) 4. In designing a high-deductible health plan, the group insurance board shall ensure that the plan may be used in conjunction with a health savings account.

AB40,464,3 (2) The group insurance board may contract with any person to provide administrative and other services relating to health savings accounts established under this section.

AB40,464,9 (3) The group insurance board may collect fees from state agencies to pay all administrative costs relating to the establishment and operation of health savings accounts established under this section. The group insurance board shall develop a methodology for determining each state agency's share of the administrative costs. Moneys collected under this subsection shall be credited to the appropriation account under s. 20.515 (1) (tm).

AB40,464,13 (4) Beginning on January 1, 2015, to the extent practicable, any agreement with any insurer or provider to provide health care coverage to state employees under s. 40.51 (6) shall require the insurer or provider to also offer a high-deductible health plan that may be used in conjunction with a health savings account.

AB40,754 Section 754. 40.72 (4r) of the statutes is amended to read:

AB40,464,21 40.72 (4r) At any time after an insured employee's amount of life insurance is reduced under subs. (2) and (3) and life insurance premiums are no longer required under s. 40.05 (6) (b), the employee may convert the present value of the life insurance to pay the premiums for health or long-term care insurance provided under subch. IV, but only if the department determines that the value of the conversion is exempt from taxation under the internal revenue code Internal Revenue Code.

AB40,755 Section 755. 40.80 (2) (g) of the statutes is amended to read:

AB40,465,3 40.80 (2) (g) Serve as trustee of any deferred compensation plan established under this section, hold the assets and income of the plan in trust for the exclusive benefit of the employees who participate in the plan and their beneficiaries, and maintain the plan as an eligible deferred compensation plan, as defined in 26 USC section 457 (b) of the Internal Revenue Code, and as a governmental plan for eligible employers, as defined in 26 USC section 457 (e) (1) (A) of the Internal Revenue Code.

AB40,756 Section 756. 40.80 (2t) of the statutes is amended to read:

AB40,465,9 40.80 (2t) The deferred compensation board may require a deferred compensation plan under this subchapter, upon election by a participant who is a an eligible retired public safety officer, to allow for the deduction of insurance premiums for health or long-term care insurance coverage from an amount distributed from a participant's account and for the payment of the premiums directly to an insurer.

AB40,757 Section 757. 40.81 (2) of the statutes is amended to read:

AB40,465,17 40.81 (2) Any local government employer, or 2 or more employers acting jointly, may also elect under procedures established by the employer or employers to contract directly with a deferred compensation plan provider to administer a deferred compensation plan or to manage any compensation deferred under the plan and may also provide a plan under section 403 (b) of the internal revenue code Internal Revenue Code under procedures established by the local government employer or employers.

AB40,758 Section 758. 40.86 (intro.) of the statutes is amended to read:

AB40,465,23 40.86 Covered expenses. (intro.) An employee-funded reimbursement account plan may provide reimbursement to an employee for only the following expenses that are actually incurred and paid by an employee and that the board determines are consistent with the applicable requirements of the internal revenue code Internal Revenue Code:

AB40,759 Section 759. 41.23 of the statutes is amended to read:

AB40,466,8 41.23 Sale of excess or surplus property. The department may acquire excess or surplus property from the department of administration under ss. 16.72 (4) (b) and 16.98 (1) or from the department of transportation under s. 84.09 (5s) and, subject to any prior action under s. 13.48 (14) (am) or 16.848 (1), the department may sell the property acquired under this section to any person at a price determined by the department of tourism. All proceeds received by the department of tourism from the sale of property under this section shall be credited to the appropriation account under s. 20.380 (1) (h).

AB40,760 Section 760. 41.41 (7) (b) of the statutes is amended to read:

AB40,466,13 41.41 (7) (b) Lease Subject to any prior action under s. 13.48 (14) (am) or 16.848 (1), lease land that is part of the Kickapoo valley reserve to any person for purposes consistent with the management of the reserve under sub. (3), or for agricultural purposes, and lease other land that is acquired by the board for any lawful purpose.

AB40,761 Section 761. 42.106 (3) of the statutes is created to read:

AB40,466,17 42.106 (3) The state fair park board shall enter into a memorandum of understanding with the department of administration regarding the provision of police and security services to state fair park.

AB40,762 Section 762. 44.015 (1) of the statutes is amended to read:

AB40,466,25 44.015 (1) Acquire any interest in real or personal property by gift, bequest or otherwise in any amount and, subject to prior action under s. 13.48 (14) (am) or 16.848 (1), may operate, manage, sell, or rent or convey real estate acquired by gift, bequest, foreclosure or other means, upon such terms and conditions as the board of curators deems for its interests but may not sell, mortgage, transfer or dispose of in any manner or remove from its buildings, except for temporary purposes, any article therein without authority of law.

AB40,763 Section 763. 44.16 (1) of the statutes is amended to read:

AB40,467,9 44.16 (1) The Subject to any prior action under s. 13.48 (14) (am) or 16.848 (1), the historical society may enter into a lease agreement with the Circus World Museum Foundation, Inc., for the purpose of operating Circus World Museum, located in Baraboo, Wisconsin. The lease agreement shall not include any provision for the payment of a percentage of gross admissions income at Circus World Museum to the historical society. If a lease agreement under this subsection is not in effect, the historical society shall operate and maintain Circus World Museum as provided in s. 44.20 (1).

AB40,764 Section 764. 44.20 (1) of the statutes is amended to read:

AB40,467,17 44.20 (1) The historical society shall operate and maintain the historic sites known as Stonefield Village, Pendarvis, Villa Louis, Old Wade House, Madeline Island Museum, Old World Wisconsin, H.H. Bennett Studios Studio, and, if the First Capitol state park has been transferred to the historical society under 1993 Wisconsin Act 16, section 9142 (1e), First Capitol. If a lease agreement under s. 44.16 (1) is not in effect, the historical society shall also operate and maintain Circus World Museum.

AB40,765 Section 765. 45.02 (2) (intro.) of the statutes is amended to read:

AB40,467,23 45.02 (2) (intro.) Except as provided in sub. (3) and s. 45.51 (6m), to be eligible for benefits under this chapter an applicant shall be a resident of and living in this state at the time of making application or the veteran from whom the applicant derives eligibility is deceased, and the veteran from whom eligibility is derived meets one of the following conditions:

AB40,766 Section 766. 45.03 (5) (c) 1. a. of the statutes is amended to read:

AB40,468,6 45.03 (5) (c) 1. a. Without limitation by reason of any other provisions of the statutes except s. ss. 13.48 (14) (am) and 16.848 (1), unless otherwise required by law, the power to sell and to convey title in fee simple to a nonprofit corporation any land and any existing buildings owned by the state that are under the jurisdiction of the department for the consideration and upon the terms and conditions as in the judgment of the board are in the public interest.

AB40,767 Section 767. 45.04 (1) (a) of the statutes is amended to read:

AB40,468,14 45.04 (1) (a) "Duly authorized representative" means any person authorized in writing by the veteran to act for the veteran, the veteran's guardian if the veteran is adjudicated incompetent, or a legal representative if the veteran is deceased. Where for proper reason no representative If no person is so authorized and no guardian or legal representative has been or will be appointed, the veteran's spouse, an adult child of the veteran, or, if the veteran is unmarried, either a parent or adult sibling of the veteran shall be recognized as the duly authorized representative.

AB40,768 Section 768. 45.20 (1) (d) of the statutes is amended to read:

AB40,468,21 45.20 (1) (d) "Tuition," when referring to the University of Wisconsin System, means academic fees and segregated fees; when referring to the technical colleges, means "program fees" and "additional fees" as described in s. 38.24 (1m) and (1s); and when referring to a high school, a school that is approved under s. 45.03 (11), or a proprietary school that is approved under s. 38.50 440.55, means the charge for the courses for which a person is enrolled.

AB40,769 Section 769. 45.20 (2) (a) 1. of the statutes is amended to read:

AB40,469,4 45.20 (2) (a) 1. The department shall administer a tuition reimbursement program for eligible veterans enrolling as undergraduates in any institution of higher education in this state, enrolling in a school that is approved under s. 45.03 (11), enrolling in a proprietary school that is approved under s. 38.50 440.55, enrolling in a public or private high school, enrolling in a tribal school, as defined in s. 115.001 (15m), in any grade from 9 to 12, or receiving a waiver of nonresident tuition under s. 39.47.

AB40,770 Section 770. 45.20 (2) (a) 2. (intro.) of the statutes is amended to read:

AB40,469,11 45.20 (2) (a) 2. (intro.) A veteran who is a resident of this state and otherwise qualified to receive benefits under this subsection may receive the benefits under this subsection upon the completion of any correspondence courses or part-time classroom study from an institution of higher education located outside this state, from a school that is approved under s. 45.03 (11), or from a proprietary school that is approved under s. 38.50 440.55, if any of the following applies: