SB40, s. 740 14Section 740. 38.24 (7) (c) of the statutes is created to read:
SB40,479,1715 38.24 (7) (c) The higher educational aids board shall reimburse the district
16board for all fees under sub. (1m) (a) to (c) remitted under par. (b) as provided in s.
1739.50 (2).
SB40, s. 741 18Section 741. 38.24 (8) (c) of the statutes is created to read:
SB40,479,2119 38.24 (8) (c) The higher educational aids board shall reimburse the district
20board for all fees under sub. (1m) (a) to (c) remitted under par. (b) as provided in s.
2139.50 (2).
SB40, s. 742 22Section 742. 38.28 (3) of the statutes is amended to read:
SB40,480,423 38.28 (3) If the appropriation for state aid under s. 20.292 (1) (fc) (u) in any one
24year is insufficient to pay the full amount under subs. (2) (c) and (g), funds in the
25appropriation shall be used first for the purposes of sub. (2) (c) and any remaining

1funds shall be prorated among the districts entitled to support under sub. (2) (g). If
2the appropriation for state aid under s. 20.292 (1) (fc) (u) in any one year is
3insufficient to pay the full amount under sub. (2) (c), funds in the appropriation shall
4be prorated among the districts entitled to the funds.
SB40, s. 743 5Section 743. 38.29 (2) (c) of the statutes is amended to read:
SB40,480,76 38.29 (2) (c) Amounts awarded shall be paid from the appropriation under s.
720.292 (1) (fg) (v).
SB40, s. 744 8Section 744. 39.435 (3) of the statutes is amended to read:
SB40,480,169 39.435 (3) Grants under sub. (1) shall not be less than $250 during any one
10academic year, unless the joint committee on finance approves an adjustment in the
11amount of the minimum grant. Grants under sub. (1) shall not exceed $3,000 during
12any one academic year shall not exceed 50 percent of the resident undergraduate
13academic fees charged to attend the University of Wisconsin-Madison for the
14previous academic year
. The board shall, by rule, establish a reporting system to
15periodically provide student economic data and shall promulgate other rules the
16board deems necessary to assure uniform administration of the program.
SB40, s. 745 17Section 745. 39.435 (7) (a) 1. of the statutes is amended to read:
SB40,480,2118 39.435 (7) (a) 1. For purposes of calculating the amount to be appropriated
19under s. 20.235 (1) (fe) for fiscal year 2007-08 2009-10, "base amount" means the
20amount shown in the schedule under s. 20.005 for that appropriation for fiscal year
212006-07 2008-09.
SB40, s. 746 22Section 746. 39.435 (7) (a) 2. of the statutes is amended to read:
SB40,481,223 39.435 (7) (a) 2. For purposes of calculating the amount to be appropriated
24under s. 20.235 (1) (fe) for each fiscal year after fiscal year 2007-08 2009-10, "base

1amount" means the appropriation amount calculated under par. (b) for the previous
2fiscal year.
SB40, s. 747 3Section 747. 39.435 (7) (b) (intro.) of the statutes is amended to read:
SB40,481,64 39.435 (7) (b) (intro.) Biennially, beginning on February 1, 2007 2009, the board
5shall calculate the amounts to be appropriated under s. 20.235 (1) (fe) for the next
6biennium as follows:
SB40, s. 748 7Section 748. 39.437 of the statutes is created to read:
SB40,481,11 839.437 Wisconsin covenant scholars grants. (1) Establishment of grant
9program.
There is established, to be administered by the board, a Wisconsin
10Covenant Scholars Program to provide grants to students who meet the eligibility
11criteria specified in sub. (2).
SB40,481,13 12(2) Eligibility. (a) Except as provided in par. (b), a student is eligible for a grant
13under this section if the student meets all of the following criteria:
SB40,481,1714 1. The student is a resident of this state and is enrolled at least half time and
15registered as a freshman, sophomore, junior, or senior in a public or private,
16nonprofit, accredited institution of higher education or in a tribally controlled college
17in this state.
SB40,481,25182. The student is eligible for a Federal Pell Grant under 20 USC 1070a, the
19federal adjusted gross income of a parent of the student, as shown on the student's
20application for student financial assistance, does not exceed the income guidelines
21prescribed under 42 USC 1758 (b) for determining eligibility for reduced-price
22lunches under the federal National School Lunch Act, 42 USC 1751 to 1769i, or, if
23the student is an independent student, as defined in 20 USC 1087vv, the federal
24adjusted gross income of the student, as shown on the student's application for
25student financial assistance, does not exceed those income guidelines.
SB40,482,5
1(b) 1. The board may not make a grant under this section to a person whose
2name appears on the statewide support lien docket under s. 49.854 (2) (b), unless the
3person provides to the board a payment agreement that has been approved by the
4county child support agency under s. 59.53 (5) and that is consistent with rules
5promulgated under s. 49.858 (2) (a).
SB40,482,76 2. No student shall be eligible for a grant under this section in more than the
7equivalent of 10 semesters of undergraduate education.
SB40,482,108 3. No student who fails to meet acceptable academic standards prescribed by
9the student's institution of higher education or tribally controlled college shall be or
10shall remain eligible for a grant under this section.
SB40,482,13 11(3) Amount of grant. The amount of a grant shall be based on financial need,
12as determined by the board, and shall be paid from the appropriation account under
13s. 20.235 (1) (fm).
SB40,482,22 14(4) Administration of grant program. (a) By February 1 of each year, the
15Board of Regents of the University of Wisconsin System shall provide to the board
16information relating to the resident undergraduate academic fees charged to attend
17each of the institutions within that system for the current academic year, the
18technical college system board shall provide to the board information relating to the
19fees under s. 38.24 (1m) (a) to (c) charged to attend each of the technical colleges
20within that system for the current academic year, and each tribally controlled college
21in this state shall provide to the board information relating to the tuition and fees
22charged to attend the tribal college for the current academic year.
SB40,483,323 (b) By April 1 of each year, the board shall determine the average of the resident
24undergraduate academic fees charged for the current academic year among the
25institutions within the University of Wisconsin System, the average of the fees under

1s. 38.24 (1m) (a) to (c) charged for the current academic year among the technical
2colleges in this state, and the average of the tuition and fees charged for the current
3academic year among the tribally controlled colleges in this state.
SB40,483,7 4(5) Rules. The board shall promulgate rules to implement this section,
5including rules establishing a reporting system to periodically provide student
6economic data and any other rules the board considers necessary to assure the
7uniform administration of this section.
SB40, s. 749 8Section 749. 39.50 of the statutes is created to read:
SB40,483,20 939.50 Remission of fees for veterans and dependents. (1) University of
10Wisconsin System.
At the end of each semester, the Board of Regents of the
11University of Wisconsin System shall certify to the board the number of students
12enrolled in the University of Wisconsin System to whom any fees or nonresident
13tuition has been remitted under s. 36.27 (3n) or (3p), the number of credits for which
14those fees or that nonresident tuition has been remitted, and the amount of fees and
15nonresident tuition remitted. If the board approves the information certified under
16this subsection, the board, from the appropriation account under s. 20.235 (1) (fz),
17shall reimburse the board of regents for the amount of fees and nonresident tuition
18remitted. The board of regents shall credit any amounts received under this
19subsection to the appropriation under s. 20.285 (1) (k) and shall expend those
20amounts received for degree credit instruction.
SB40,484,3 21(2) Technical colleges. At the end of each semester, each technical college
22district board shall certify to the board the number of students enrolled in the
23technical college governed by the district board to whom any fees have been remitted
24under s. 38.24 (7) or (8), the number of credits for which those fees have been
25remitted, and the amount of those fees remitted. If the board approves the

1information certified under this subsection, the board, from the appropriation
2account under s. 20.235 (1) (fz), shall reimburse the district board for the amount of
3fees remitted.
SB40, s. 750 4Section 750. 40.02 (17) (intro.) of the statutes is amended to read:
SB40,484,205 40.02 (17) (intro.) "Creditable service" means the creditable current and prior
6service, expressed in years and fractions of a year to the nearest one-hundredth, for
7which a participating employee receives or is considered to receive earnings under
8sub. (22) (e) or (em) and for which contributions have been made as required by s.
940.05 (1) and (2) and creditable military service, service credited under s. 40.285 (2)
10(b) and service credited under s. 40.29, expressed in years and fractions of years to
11the nearest one-hundredth. How much service in any annual earnings period is the
12full-time equivalent of one year of creditable service shall be determined by rule by
13the department and the rules may provide for differing equivalents for different
14types of employment, except that the full-time equivalent of one year of creditable
15service for an educational support personnel employee is 1,320 hours
. Except as
16provided under s. 40.285 (2) (e) and (f), the amount of creditable service for periods
17prior to January 1, 1982, shall be the amount for which the participant was eligible
18under the applicable laws and rules in effect prior to January 1, 1982. No more than
19one year of creditable service shall be granted for any annual earnings period.
20Creditable service is determined in the following manner for the following persons:
SB40, s. 751 21Section 751. 40.02 (20) of the statutes is renumbered 40.02 (20) (intro.) and
22amended to read:
SB40,484,2323 40.02 (20) (intro.) "Dependent" means the:
SB40,485,5 24(a) Except as provided in par. (b), the spouse, minor child, including
25stepchildren of the current marriage dependent on the employee for support and

1maintenance, or child of any age, including stepchildren of the current marriage, if
2handicapped to an extent requiring continued dependence. For group insurance
3purposes only, the department may promulgate rules with a different definition of
4"dependent" than the one otherwise provided in this subsection paragraph for each
5group insurance plan.
SB40, s. 752 6Section 752. 40.02 (20) (b) of the statutes is created to read:
SB40,485,137 40.02 (20) (b) For a state employee or for an annuitant who was employed by
8a state agency on the day on which he or she terminated covered employment, the
9spouse, domestic partner, minor child, including stepchildren of the current
10marriage or children of a domestic partner dependent on the employee for support
11and maintenance, or child of any age, including stepchildren of the current marriage
12or children of a domestic partner, if handicapped to an extent requiring continued
13dependence.
SB40, s. 753 14Section 753. 40.02 (21c) of the statutes is created to read:
SB40,485,1515 40.02 (21c) "Domestic partner" means an individual in a domestic partnership.
SB40, s. 754 16Section 754. 40.02 (21d) of the statutes is created to read:
SB40,485,1817 40.02 (21d) "Domestic partnership" means a relationship between 2
18individuals that satisfies all of the following:
SB40,485,2019 (a) Each individual is at least 18 years old and otherwise competent to enter
20into a contract.
SB40,485,2221 (b) Neither individual is married to, or in a domestic partnership with, another
22individual.
SB40,485,2423 (c) The 2 individuals are not related by blood in any way that would prohibit
24marriage under s. 765.03.
SB40,486,2
1(d) The 2 individuals consider themselves to be members of each other's
2immediate family.
SB40,486,43 (e) The 2 individuals agree to be responsible for each other's basic living
4expenses.
SB40, s. 755 5Section 755. 40.02 (25) (b) 8. of the statutes is amended to read:
SB40,486,86 40.02 (25) (b) 8. Any other state employee for whom coverage is authorized
7under a collective bargaining agreement pursuant to subch. I or, V, or VI of ch. 111
8or under s. 230.12 or 233.10.
SB40, s. 756 9Section 756. 40.02 (28) of the statutes is amended to read:
SB40,486,1910 40.02 (28) "Employer" means the state, including each state agency, any
11county, city, village, town, school district, other governmental unit or
12instrumentality of 2 or more units of government now existing or hereafter created
13within the state, any federated public library system established under s. 43.19
14whose territory lies within a single county with a population of 500,000 or more, a
15local exposition district created under subch. II of ch. 229 and a family long-term
16care district created under s. 46.2895, except as provided under ss. 40.51 (7) and
1740.61 (3) and subch. X. "Employer" does not include a local cultural arts district
18created under subch. V of ch. 229. Each employer shall be a separate legal
19jurisdiction for OASDHI purposes.
SB40, s. 757 20Section 757 . 40.02 (28) of the statutes, as affected by 1999 Wisconsin Act 65,
21is amended to read:
SB40,487,622 40.02 (28) "Employer" means the state, including each state agency, any
23county, city, village, town, school district, other governmental unit or
24instrumentality of 2 or more units of government now existing or hereafter created
25within the state, any federated public library system established under s. 43.19

1whose territory lies within a single county with a population of 500,000 or more, a
2local exposition district created under subch. II of ch. 229 and a family long-term
3care district created under s. 46.2895, except as provided under ss. 40.51 (7) and
440.61 (3). "Employer" does not include a local cultural arts district created under
5subch. V of ch. 229. Each employer shall be a separate legal jurisdiction for OASDHI
6purposes.
SB40, s. 758 7Section 758. 40.02 (33) (d) of the statutes is created to read:
SB40,487,98 40.02 (33) (d) For an educational support personnel employee, the amount
9calculated under par. (a) multiplied by 1.25.
SB40, s. 759 10Section 759. 40.02 (36) of the statutes is amended to read:
SB40,487,2011 40.02 (36) "Governing body" means the legislature or the head of each state
12agency with respect to employees of that agency for the state, the common council
13in cities, the village board in villages, the town board in towns, the county board in
14counties, the school board in school districts, or the board, commission or other
15governing body having the final authority for any other unit of government, for any
16agency or instrumentality of 2 or more units of government, for any federated public
17library system established under s. 43.19 whose territory lies within a single county
18with a population of 500,000 or more, for a local exposition district created under
19subch. II of ch. 229 or for a family long-term care district created under s. 46.2895,
20but does not include a local cultural arts district created under subch. V of ch. 229.
SB40, s. 760 21Section 760. 40.02 (54) (k) of the statutes is created to read:
SB40,487,2222 40.02 (54) (k) The Healthy Wisconsin Authority.
SB40, s. 761 23Section 761. 40.02 (54) (L) of the statutes is created to read:
SB40,487,2424 40.02 (54) (L) The Health Insurance Risk-Sharing Plan Authority.
SB40, s. 762 25Section 762. 40.05 (1) (b) of the statutes is amended to read:
SB40,489,3
140.05 (1) (b) In lieu of employee payment, the employer may pay all or part of
2the contributions required by par. (a), but all the payments shall be available for
3benefit purposes to the same extent as required contributions deducted from
4earnings of the participating employees. Action to assume employee contributions
5as provided under this paragraph shall be taken at the time and in the form
6determined by the governing body of the participating employer. The state shall pay
7under this paragraph for employees who are covered by a collective bargaining
8agreement under subch. V or VI of ch. 111 and for employees whose fringe benefits
9are determined under s. 230.12 an amount equal to 4% of the earnings paid by the
10state unless otherwise provided in a collective bargaining agreement under subch.
11V or VI of ch. 111 or unless otherwise determined under s. 230.12. The University
12of Wisconsin Hospitals and Clinics Authority shall pay under this paragraph for
13employees who are covered by a collective bargaining agreement under subch. I of
14ch. 111 and for employees whose fringe benefits are determined under s. 233.10 an
15amount equal to 4% of the earnings paid by the authority unless otherwise provided
16in a collective bargaining agreement under subch. I of ch. 111 or unless otherwise
17determined under s. 233.10. The state shall pay under this paragraph for employees
18who are not covered by a collective bargaining agreement under subch. V or VI of ch.
19111 and for employees whose fringe benefits are not determined under s. 230.12 an
20amount equal to 4% of the earnings paid by the state unless a different amount is
21recommended by the director of the office of state employment relations and
22approved by the joint committee on employment relations in the manner provided
23for approval of changes in the compensation plan under s. 230.12 (3). The University
24of Wisconsin Hospitals and Clinics Authority shall pay under this paragraph for its
25employees who are not covered by a collective bargaining agreement under subch.

1I of ch. 111 an amount equal to 4% of the earnings paid by the authority unless a
2different amount is established by the board of directors of the authority under s.
3233.10.
SB40, s. 763 4Section 763. 40.05 (4) (a) 2. of the statutes is amended to read:
SB40,489,185 40.05 (4) (a) 2. For an insured employee who is an eligible employee under s.
640.02 (25) (a) 2. or (b) 1m., the employer shall pay required employer contributions
7toward the health insurance premium of the insured employee beginning on the date
8on which the employee becomes insured. For an insured state employee who is
9currently employed, but who is not a limited term appointment under s. 230.26 or
10an eligible employee under s. 40.02 (25) (a) 2. or (b) 1m., the employer shall pay
11required employer contributions toward the health insurance premium of the
12insured employee beginning on the first day of the 7th 3rd month beginning after the
13date on which the employee begins employment with the state, not including any
14leave of absence. For an insured employee who has a limited term appointment
15under s. 230.26, the employer shall pay required employer contributions toward the
16health insurance premium of the insured employee beginning on the first day of the
177th month beginning after the date on which the employee first becomes a
18participating employee.
SB40, s. 764 19Section 764. 40.05 (4) (ag) (intro.) of the statutes is amended to read:
SB40,489,2320 40.05 (4) (ag) (intro.) Beginning on January 1, 2004, except as otherwise
21provided in accordance with a collective bargaining agreement under subch. I or, V,
22or VI
of ch. 111 or s. 230.12 or 233.10, the employer shall pay for its currently
23employed insured employees:
SB40, s. 765 24Section 765. 40.05 (4) (ar) of the statutes is amended to read:
SB40,490,8
140.05 (4) (ar) The employer shall pay under par. (a) for employees who are not
2covered by a collective bargaining agreement under subch. I or, V, or VI of ch. 111 and
3for employees whose health insurance premium contribution rates are not
4determined under s. 230.12 or 233.10 an amount equal to the amount specified in par.
5(ag) unless a different amount is recommended by the director of the office of state
6employment relations and approved by the joint committee on employment relations
7in the manner provided for approval of changes in the compensation plan under s.
8230.12 (3).
SB40, s. 766 9Section 766. 40.05 (4) (b) of the statutes is amended to read:
SB40,491,1710 40.05 (4) (b) Except as provided under pars. (bc) and (bp), accumulated unused
11sick leave under ss. 13.121 (4), 36.30, 230.35 (2), 233.10, and 757.02 (5) and subch.
12I or, V, or VI of ch. 111 of any eligible employee shall, at the time of death, upon
13qualifying for an immediate annuity or for a lump sum payment under s. 40.25 (1)
14or upon termination of creditable service and qualifying as an eligible employee
15under s. 40.02 (25) (b) 6. or 10., be converted, at the employee's highest basic pay rate
16he or she received while employed by the state, to credits for payment of health
17insurance premiums on behalf of the employee or the employee's surviving insured
18dependents. Any supplemental compensation that is paid to a state employee who
19is classified under the state classified civil service as a teacher, teacher supervisor,
20or education director for the employee's completion of educational courses that have
21been approved by the employee's employer is considered as part of the employee's
22basic pay for purposes of this paragraph. The full premium for any eligible employee
23who is insured at the time of retirement, or for the surviving insured dependents of
24an eligible employee who is deceased, shall be deducted from the credits until the
25credits are exhausted and paid from the account under s. 40.04 (10), and then

1deducted from annuity payments, if the annuity is sufficient. The department shall
2provide for the direct payment of premiums by the insured to the insurer if the
3premium to be withheld exceeds the annuity payment. Upon conversion of an
4employee's unused sick leave to credits under this paragraph or par. (bf), the
5employee or, if the employee is deceased, the employee's surviving insured
6dependents may initiate deductions from those credits or may elect to delay
7initiation of deductions from those credits, but only if the employee or surviving
8insured dependents are covered by a comparable health insurance plan or policy
9during the period beginning on the date of the conversion and ending on the date on
10which the employee or surviving insured dependents later elect to initiate
11deductions from those credits. If an employee or an employee's surviving insured
12dependents elect to delay initiation of deductions from those credits, an employee or
13the employee's surviving insured dependents may only later elect to initiate
14deductions from those credits during the annual enrollment period under par. (be).
15A health insurance plan or policy is considered comparable if it provides hospital and
16medical benefits that are substantially equivalent to the standard health insurance
17plan established under s. 40.52 (1).
SB40, s. 767 18Section 767. 40.05 (4) (bw) of the statutes is amended to read:
SB40,492,419 40.05 (4) (bw) On converting accumulated unused sick leave to credits for the
20payment of health insurance premiums under par. (b), the department shall add
21additional credits, calculated in the same manner as are credits under par. (b), that
22are based on a state employee's accumulated sabbatical leave or earned vacation
23leave from the state employee's last year of service prior to retirement, or both. The
24department shall apply the credits awarded under this paragraph for the payment
25of health insurance premiums only after the credits awarded under par. (b) are

1exhausted. This paragraph applies only to state employees who are eligible for
2accumulated unused sick leave conversion under par. (b) and who are entitled to the
3benefits under this paragraph pursuant to a collective bargaining agreement under
4subch. V or VI of ch. 111.
SB40, s. 768 5Section 768. 40.05 (4g) (a) 4. of the statutes is amended to read:
SB40,492,106 40.05 (4g) (a) 4. Has received a military leave of absence under s. 230.32 (3) (a)
7or 230.35 (3), under a collective bargaining agreement under subch. V or VI of ch. 111
8or under rules promulgated by the director of the office of state employment relations
9or is eligible for reemployment with the state under s. 21.79 after completion of his
10or her service in the U.S. armed forces.
SB40, s. 769 11Section 769. 40.05 (5) (intro.) of the statutes is amended to read:
SB40,492,1612 40.05 (5) Income continuation insurance premiums. (intro.) For the income
13continuation insurance provided under subch. V the employee shall pay the amount
14remaining after the employer has contributed the following or, if different, the
15amount determined under a collective bargaining agreement under subch. I or, V, or
16VI
of ch. 111 or s. 230.12 or 233.10:
SB40, s. 770 17Section 770. 40.05 (5) (b) 4. of the statutes is amended to read:
SB40,492,2018 40.05 (5) (b) 4. The accrual and crediting of sick leave shall be determined in
19accordance with ss. 13.121 (4), 36.30, 230.35 (2), 233.10 and 757.02 (5) and subch. I
20or, V, or VI of ch. 111.
SB40, s. 771 21Section 771. 40.05 (6) (a) of the statutes is amended to read:
SB40,493,422 40.05 (6) (a) Except as otherwise provided in accordance with a collective
23bargaining agreement under subch. I or, V, or VI of ch. 111 or s. 230.12 or 233.10, each
24insured employee under the age of 70 and annuitant under the age of 65 shall pay
25for group life insurance coverage a sum, approved by the group insurance board,

1which shall not exceed 60 cents monthly for each $1,000 of group life insurance,
2based upon the last amount of insurance in force during the month for which
3earnings are paid. The equivalent premium may be fixed by the group insurance
4board if the annual compensation is paid in other than 12 monthly installments.
SB40, s. 772 5Section 772. 40.22 (2) (a) of the statutes is amended to read:
SB40,493,96 40.22 (2) (a) Except as provided in sub. (2m), the employee is not expected to
7work at least one-third of what is considered full-time employment by the
8department, as determined by rule, or, for an educational support personnel
9employee, as specified under s. 40.02 (17) (intro.)
.
SB40, s. 773 10Section 773. 40.22 (2m) (intro.) of the statutes is amended to read:
SB40,493,1711 40.22 (2m) (intro.) An employee who is not expected to work at least one-third
12of what is considered full-time employment by the department, as determined by
13rule, or, for an educational support personnel employee, as specified under s. 40.02
14(17) (intro.),
and who is not otherwise excluded under sub. (2) from becoming a
15participating employee shall become a participating employee if he or she is
16subsequently employed by the state agency or other participating employer for either
17of the following periods:
SB40, s. 774 18Section 774. 40.22 (2m) (a) of the statutes is amended to read:
SB40,493,2119 40.22 (2m) (a) At least one year for at least one-third of what is considered
20full-time employment by the department, as determined by rule, or, for an
21educational support personnel employee, as specified under s. 40.02 (17) (intro.)
.
SB40, s. 775 22Section 775. 40.22 (3) (b) of the statutes is amended to read:
SB40,494,223 40.22 (3) (b) The first day after completion of one year of employment for at
24least one-third of what is considered full-time employment by the department, as
25determined by rule, or, for an educational support personnel employee, as specified

1under s. 40.02 (17) (intro.),
if the person becomes a participating employee under sub.
2(2m) after the employer's effective date of participation.
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