AB974,9 13Section 9. 25.90 of the statutes is created to read:
AB974,5,19 1425.90 401Kids savings program trust fund. There is established a separate
15nonlapsible trust fund designated as the 401Kids savings program trust fund,
16consisting of all revenue from enrollment fees for and contributions to 401Kids
17savings accounts established under s. 40.96, from distributions and fees paid by the
18vendor under s. 40.96 (8), fees paid by account owners under s. 40.96 (11), and from
19repayments under s. 40.96 (6) (c) and (d).
AB974,10 20Section 10. Chapter 40 (title) of the statutes is amended to read:
AB974,5,2221 CHAPTER 40
AB974,5,23 23and 401Kids savings program
AB974,11 24Section 11. 40.08 (8) (a) (intro.) of the statutes is amended to read:
140.08 (8) (a) (intro.) Benefits Except as provided in s. 40.96, benefits provided
2under this chapter shall be considered abandoned as follows:
AB974,12 3Section 12. Subchapter X of chapter 40 [precedes 40.96] of the statutes is
4created to read:
AB974,6,55 CHAPTER 40
AB974,6,77 401Kids Savings program
AB974,13 8Section 13. 40.96 of the statutes is created to read:
AB974,6,9 940.96 401Kids savings program. (1) Definitions. In this section:
AB974,6,1110 (a) “Account beneficiary” means an individual for whom the department
11establishes a 401Kids savings account under sub. (4) (a), (b), or (c).
AB974,6,1212 (b) “Account owner” means the following:
AB974,6,1513 1. If the account beneficiary is less than 18 years of age, any individual
14designated by the department as an account owner in establishing a 401Kids savings
15account under sub. (4) (a), (b), or (c).
AB974,6,1616 2. If the account beneficiary is at least 18 years of age, the account beneficiary.
AB974,6,1817 (c) “Dependent” means a dependent as defined under section 152 of the Internal
18Revenue Code.
AB974,6,1919 (d) “Qualified expense” means any of the following:
AB974,6,2320 1. Any cost incurred by an account beneficiary in connection with the account
21beneficiary attending an institution of higher education or receiving any
22postsecondary training, including expenses for tuition, fees, books, supplies,
23equipment, food, or housing.
12. Any cost incurred by an account beneficiary in connection with the account
2beneficiary purchasing the account beneficiary's first home, including mortgage
3payments, a down payment, or closing costs.
AB974,7,54 3. Any cost incurred by an account beneficiary related to a medical emergency
5of the account beneficiary.
AB974,7,86 4. Any cost incurred by an account beneficiary during the account beneficiary's
7retirement relating to housing, food, clothing, health care, transportation, or other
8household needs.
AB974,7,9 9(2) Duties of the department. The department shall do all of the following:
AB974,7,1110 (a) Except as provided under sub. (8), establish and administer a 401Kids
11savings program as described in this section.
AB974,7,1312 (b) Establish investment guidelines for contributions to and the earnings on
13401Kids savings accounts established under this section.
AB974,7,1514 (c) Pay distributions from 401Kids savings accounts established under this
AB974,7,1916 (d) Ensure that, if the department changes vendors under sub. (8), the balances
17of 401Kids savings accounts established under this section are promptly transferred
18into investment instruments as similar to the original investment instruments as
AB974,7,2120 (e) Conduct public outreach and fundraising to generate donations for the
21401Kids savings program.
AB974,7,2422 (f) Develop a plan that allows the department, after the program under this
23section is fully operational, to devote revenues generated under the program to fund
24the establishment of future 401Kids savings accounts under sub. (4).
1(3) Prohibition on use of trust fund moneys. The department may not expend
2any moneys from the public employee trust fund for its activities under this
AB974,8,8 4(4) Establishing accounts; account contributions by department. (a) For
5each record of birth submitted to the department under s. 69.14 (1) (a), the
6department shall establish a 401Kids savings account under this section for the
7child, with the child designated as the account beneficiary and each parent identified
8in the record of birth designated as an account owner.
AB974,8,149 (b) For each court order granting an adoption of a minor submitted to the
10department under s. 48.94 (1), the department shall establish a 401Kids savings
11account under this section for the child, with the child designated as the account
12beneficiary and each parent identified in the court order designated as an account
13owner, if the department has not already established an account for the child under
14par. (a).
AB974,8,1615 (c) 1. Any person may establish a 401Kids savings account under this section
16by doing all of the following:
AB974,8,1917 a. Making application for the account, in the form and manner prescribed by
18the department, and providing all information required by the department for
19opening the account.
AB974,8,2020 b. Designating an individual who is a minor as the account beneficiary.
AB974,8,2221 c. Making an initial contribution to the account that is at least the minimum
22amount established by the department.
AB974,9,223 2. If the requirements under subd. 1. are satisfied, and a 401Kids savings
24account has not already been created for the account beneficiary under par. (a) or (b),

1the department shall establish a 401Kids savings account, designating the person
2who established the account as the account owner.
AB974,9,43 (d) Upon the department establishing an account under par. (a) or (b), the
4department shall promptly do all of the following:
AB974,9,65 1. Provide written notice of the account to each parent designated as an account
AB974,9,87 2. From the appropriation under s. 20.515 (1) (a) or (t), deposit $25 into the
AB974,9,149 (e) If the department receives a court order granting an adoption of a minor and
10does not establish an account under par. (b) because the department has already
11established an account for the child under par. (a), the department shall update the
12account owner designation for the child's account to designate each parent identified
13in the court order as an account owner and to remove each parent identified in the
14record of birth as an account owner.
AB974,9,19 15(5) Contributions to accounts; qualified expenses. (a) An account
16beneficiary, an account owner, or any other individual authorized by an account
17beneficiary or account owner may contribute to a 401Kids savings account
18established under this section. The contribution may be made directly or as provided
19in the program established under s. 73.03 (77).
AB974,9,2220 (b) Distributions from an account established under this section may be made
21only to an account owner. An account owner may use moneys distributed from the
22account only to pay for qualified expenses.
AB974,9,25 23(6) Account termination; return of office contribution. (a) The department
24may terminate an account established under this section if any of the following
11. The account balance is $0.
AB974,10,22 2. The account beneficiary dies.
AB974,10,33 3. There has been no activity on the account for a period of 10 years.
AB974,10,54 4. Other circumstances determined by the department to be grounds for
5termination occur.
AB974,10,136 (b) Upon the termination of an account under par. (a), the department shall
7distribute any amount remaining in the account to the account owner or the account
8owner's estate. The department shall mail notice of the account termination to the
9last-known address of the account owner. If the department determines that an
10account is subject to termination under par. (a) 2., 3., or 4. and cannot with
11reasonable efforts locate the account owner within one year after making that
12determination, any amount remaining in the account is presumed abandoned under
13s. 177.13.
AB974,10,1914 (c) If the department contributed to an account as provided in sub. (4) (d) 2.,
15and the account beneficiary is not a resident of this state at the time of any
16distribution from the 401Kids savings account, the account owner shall repay to the
17department all contributions received under sub. (4) (d) 2. These payments shall be
18deposited into the 401Kids savings program trust fund and credited to the
19appropriation under s. 20.515 (1) (t).
AB974,10,23 20(7) Contracts with professionals. The department may enter into contracts
21for the services of accountants, attorneys, consultants, or other professionals to
22assist in the administration and evaluation of the 401Kids savings program
23established under this section.
AB974,11,2 24(8) Vendor. (a) The department may, in lieu of administering the program,
25select a vendor to administer the program. The department shall determine the

1factors to be considered in selecting an entity to be a vendor of the program under
2this section. Those factors shall include all of the following:
AB974,11,33 1. The entity's ability to satisfy record-keeping and reporting requirements.
AB974,11,54 2. The fees, if any, that the entity proposes to charge in connection with
5accounts established under this section.
AB974,11,76 3. The entity's plan for promoting the program and the investment that the
7entity is willing to make to promote the program.
AB974,11,98 4. The ability of the entity to augment the program with additional beneficial
9services related to the program.
AB974,11,1410 (b) If the department elects to have a vendor administer the program, the
11department shall solicit competitive sealed proposals using the process under s.
1216.75 (2m) from nongovernmental entities to serve as vendor of the program under
13this section and shall select the vendor on the basis of factors determined by the
14department under par. (a).
AB974,11,1715 (c) If the department elects to have a vendor administer the program, the
16department shall, in the contract between the department and the vendor selected
17under par. (b), require the vendor to do all of the following:
AB974,11,1918 1. Reimburse the state for all administrative costs that the state incurs for the
AB974,11,2120 2. Select a firm of certified public accountants, cause that firm to annually audit
21the program, and provide a copy of each audit to the department.
AB974,11,2522 3. Provide a quarterly statement to each account owner that identifies the
23contributions to the account during the preceding quarter, the total contributions to
24and the value of the account through the end of the preceding quarter, and any
25distributions made from the account during the preceding quarter.
1(9) Rules. The department may promulgate rules to implement and
2administer this section.
AB974,12,8 3(10) Financial aid calculations. The balance of a 401Kids savings account
4may not be included in the calculation of the account beneficiary's eligibility for state
5financial aid for higher education if the account beneficiary or account owner notifies
6the higher educational aids board and the institution of higher education that the
7account beneficiary is planning to attend that he or she is a beneficiary of a 401Kids
8savings account and provides necessary information relating to the account.
AB974,12,12 9(11) Repayment of general fund. (a) The department may charge reasonable
10fees to account owners to cover the costs of administering the program, and to repay
11the general fund for amounts transferred to the fund under s. 20.515 (2) (a) as
12provided in par. (b).
AB974,12,1813 (b) A fee collected under par. (a) shall be deposited in the 401Kids savings
14program trust fund and credited to the appropriation account under s. 20.515 (2) (r).
15From that appropriation, the department shall transfer to the general fund an
16amount equal to the amount expended from the appropriation under s. 20.515 (2) (a)
17when the department determines that the balance in the fund is sufficient to make
18the transfer. The department may transfer that amount in installments.
AB974,14 19Section 14. 48.94 (1) of the statutes is amended to read:
AB974,13,320 48.94 (1) After entry of the order granting the adoption, the clerk of the court
21shall promptly mail a copy thereof to the state bureau of vital records and the
22department of employee trust funds and shall
furnish to the state bureau of vital
any additional data needed for the new birth record. Whenever the parents
24by adoption, or the adopting parent and a birth parent who is the spouse of the
25adopting parent, request, that the birth record for the person adopted be not

1changed, then the court shall so order. In such event no new birth record shall be filed
2by the state registrar, notwithstanding the provisions of s. 69.15 (2) or any other law
3of this state.
AB974,15 4Section 15. 69.14 (1) (a) of the statutes is amended to read:
AB974,13,85 69.14 (1) (a) Filing deadline. A record of birth for every birth that occurs in this
6state shall be filed within 5 days after the birth with the state registrar, who shall
7register the birth under this subchapter. The state registrar shall submit a copy of
8the record of birth to the department of employee trust funds.
AB974,16 9Section 16. 73.03 (77) of the statutes is created to read:
AB974,13,1310 73.03 (77) To implement a program under which, beginning with taxable years
11beginning on January 1, 2022, a person described in s. 40.96 (5) (a) may direct that
12any amount of the individual's tax refund under ch. 71 be contributed to a 401Kids
13savings account established under s. 40.96 (4).
AB974,17 14Section 17. 175.46 (5) (a) of the statutes is amended to read:
AB974,13,2515 175.46 (5) (a) Except as provided in par. (b), any agreement under this section
16shall provide that any Wisconsin law enforcement officer, acting under the
17agreement in another state, shall continue to be covered by his or her employing
18agency for purposes of worker's compensation, unemployment insurance, benefits
19under ch. 40, except subch. X, and civil liability and any officer of another state acting
20in Wisconsin under the agreement shall continue to be covered for worker's
21compensation, unemployment insurance, disability and other employee benefits and
22civil liability purposes by his or her employing agency in his or her home state. Any
23Wisconsin officer acting within an adjoining state, under the agreement, is
24considered while so acting to be in the ordinary course of his or her employment with
25his or her employing Wisconsin law enforcement agency.
1Section 18. Initial applicability.
AB974,14,32 (1) 401Kids savings program. The treatment of ss. 48.94 (1) and 69.14 (1) (a) first
3applies to children born or adopted on the effective date of this subsection.
AB974,14,44 (End)