SB562: Bill Text

Under the bill, if a entity that levies a property tax reduces the costs of providing health care benefits to its employees as a result of providing benefits under the plan, the entity must distribute at least 50 percent of the reduction amount as reduction in property taxes levied for 2010. The reduction amount for each taxpayer is based on the equalized value of the taxpayer's property.

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:

SB562, s. 1 Section 1. 13.172 (1) of the statutes, as affected by 2007 Wisconsin Act 20, is amended to read:

SB562,7,8 13.172 (1) In this section, "agency" means an office, department, agency, institution of higher education, association, society, or other body in state government created or authorized to be created by the constitution or any law, that is entitled to expend moneys appropriated by law, including the legislature and the courts, and any authority created in subch. II of ch. 114 or subch. III of ch. 149 or in ch. 231, 233, 234, 260, or 279.

SB562, s. 2 Section 2. 13.48 (13) (a) of the statutes is amended to read:

SB562,7,21 13.48 (13) (a) Except as provided in par. (b) or (c), every building, structure or facility that is constructed for the benefit of or use of the state, any state agency, board, commission or department, the University of Wisconsin Hospitals and Clinics Authority, the Fox River Navigational System Authority, the Healthy Wisconsin Authority, or any local professional baseball park district created under subch. III of ch. 229 if the construction is undertaken by the department of administration on behalf of the district, shall be in compliance with all applicable state laws, rules, codes and regulations but the construction is not subject to the ordinances or regulations of the municipality in which the construction takes place except zoning, including without limitation because of enumeration ordinances or regulations relating to materials used, permits, supervision of construction or installation, payment of permit fees, or other restrictions.

SB562, s. 3 Section 3. 13.62 (2) of the statutes, as affected by 2007 Wisconsin Act 20, is amended to read:

SB562,8,3 13.62 (2) "Agency" means any board, commission, department, office, society, institution of higher education, council, or committee in the state government, or any authority created in subch. II of ch. 114 or subch. III of ch. 149 or in ch. 231, 232, 233, 234, 237, 260, or 279, except that the term does not include a council or committee of the legislature.

SB562, s. 4 Section 4. 13.94 (1) (dj) of the statutes is created to read:

SB562,8,7 13.94 (1) (dj) Annually, conduct a financial audit of the Healthy Wisconsin Plan under ch. 260 and file copies of each audit report under this paragraph with the distributees specified in par. (b).

SB562, s. 5 Section 5. 13.94 (1s) (c) 5. of the statutes is created to read:

SB562,8,10 13.94 (1s) (c) 5. The Healthy Wisconsin Authority for the cost of the audit under sub. (1) (dj).

SB562, s. 6 Section 6. 13.95 (intro.) of the statutes, as affected by 2007 Wisconsin Act 20, is amended to read:

SB562,8,25 13.95 Legislative fiscal bureau. (intro.) There is created a bureau to be known as the "Legislative Fiscal Bureau" headed by a director. The fiscal bureau shall be strictly nonpartisan and shall at all times observe the confidential nature of the research requests received by it; however, with the prior approval of the requester in each instance, the bureau may duplicate the results of its research for distribution. Subject to s. 230.35 (4) (a) and (f), the director or the director's designated employees shall at all times, with or without notice, have access to all state agencies, the University of Wisconsin Hospitals and Clinics Authority, the Wisconsin Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority, the Healthy Wisconsin Authority, the Lower Fox River Remediation Authority, and the Fox River Navigational System Authority, and to any books, records, or other documents maintained by such agencies or authorities and relating to their expenditures, revenues, operations, and structure.

SB562, s. 7 Section 7. 16.002 (2) of the statutes, as affected by 2007 Wisconsin Act 20, is amended to read:

SB562,9,7 16.002 (2) "Departments" means constitutional offices, departments, and independent agencies and includes all societies, associations, and other agencies of state government for which appropriations are made by law, but not including authorities created in subch. II of ch. 114 or subch. III of ch. 149 and in chs. 231, 232, 233, 234, 235, 237, 260, and 279.

SB562, s. 8 Section 8. 16.004 (4) of the statutes, as affected by 2007 Wisconsin Act 20, is amended to read:

SB562,9,15 16.004 (4) Freedom of access. The secretary and such employees of the department as the secretary designates may enter into the offices of state agencies and authorities created under subch. II of ch. 114 or subch. III of ch. 149 and under chs. 231, 233, 234, 237, 260, and 279, and may examine their books and accounts and any other matter that in the secretary's judgment should be examined and may interrogate the agency's employees publicly or privately relative thereto.

SB562, s. 9 Section 9. 16.004 (5) of the statutes, as affected by 2007 Wisconsin Act 20, is amended to read:

SB562,9,22 16.004 (5) Agencies and employees to cooperate. All state agencies and authorities created under subch. II of ch. 114 or subch. III of ch. 149 and under chs. 231, 233, 234, 237, 260, and 279, and their officers and employees, shall cooperate with the secretary and shall comply with every request of the secretary relating to his or her functions.

SB562, s. 10 Section 10. 16.004 (7d) of the statutes is created to read:

SB562,9,25 16.004 (7d) Containment of health care costs. In consultation with the board of the Healthy Wisconsin Authority, the secretary shall establish, by rule, a program to contain health care costs in this state during any year in which the board determines that health care costs increase at a rate exceeding the national average of medical inflation, as defined in s. 260.01 (4).

SB562, s. 11 Section 11. 16.004 (7h) of the statutes is created to read:

SB562,10,10 16.004 (7h) Employer assessments to the Healthy Wisconsin trust fund. The secretary shall establish a methodology for allocating employer assessments among state agencies to pay the Healthy Wisconsin trust fund for the operation and funding of the Healthy Wisconsin Plan under ch. 260. State agencies shall pay, from appropriations used to fund fringe benefit costs of state employees, to the Healthy Wisconsin trust fund amounts determined by the secretary.

SB562, s. 12 Section 12. 16.004 (12) (a) of the statutes, as affected by 2007 Wisconsin Act 20, is amended to read:

SB562,10,20 16.004 (12) (a) In this subsection, "state agency" means an association, authority, board, department, commission, independent agency, institution, office, society, or other body in state government created or authorized to be created by the constitution or any law, including the legislature, the office of the governor, and the courts, but excluding the University of Wisconsin Hospitals and Clinics Authority, the Wisconsin Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority, the Healthy Wisconsin Authority, the Lower Fox River Remediation Authority, and the Fox River Navigational System Authority.

SB562, s. 13 Section 13. 16.045 (1) (a) of the statutes, as affected by 2007 Wisconsin Act 20, is amended to read:

SB562,11,3 16.045 (1) (a) "Agency" means an office, department, independent agency, institution of higher education, association, society, or other body in state government created or authorized to be created by the constitution or any law, that is entitled to expend moneys appropriated by law, including the legislature and the courts, but not including an authority created in subch. II of ch. 114 or subch. III of ch. 149 or in ch. 231, 232, 233, 234, 235, 237, 260, or 279.

SB562, s. 14 Section 14. 16.41 (4) of the statutes, as affected by 2007 Wisconsin Act 20, is amended to read:

SB562,11,7 16.41 (4) In this section, "authority" means a body created under subch. II of ch. 114 or subch. III of ch. 149 or under ch. 231, 233, 234, 237, 260, or 279.

SB562, s. 15 Section 15. 16.417 (1) (a) of the statutes is amended to read:

SB562,11,14 16.417 (1) (a) "Agency" means an office, department, independent agency, institution of higher education, association, society, or other body in state government created or authorized to be created by the constitution or any law, that is entitled to expend moneys appropriated by law, including the legislature and the courts, but not including an authority or the body created under subch. III of ch. 149 or under ch. 260.

SB562, s. 16 Section 16. 16.52 (7) of the statutes, as affected by 2007 Wisconsin Act 20, is amended to read:

SB562,12,2 16.52 (7) Petty cash account. With the approval of the secretary, each agency that is authorized to maintain a contingent fund under s. 20.920 may establish a petty cash account from its contingent fund. The procedure for operation and maintenance of petty cash accounts and the character of expenditures therefrom shall be prescribed by the secretary. In this subsection, "agency" means an office, department, independent agency, institution of higher education, association, society, or other body in state government created or authorized to be created by the constitution or any law, that is entitled to expend moneys appropriated by law, including the legislature and the courts, but not including an authority created in subch. II of ch. 114 or subch. III of ch. 149 or in ch. 231, 233, 234, 237, 260, or 279.

SB562, s. 17 Section 17. 16.528 (1) (a) of the statutes, as affected by 2007 Wisconsin Act 20, is amended to read:

SB562,12,10 16.528 (1) (a) "Agency" means an office, department, independent agency, institution of higher education, association, society, or other body in state government created or authorized to be created by the constitution or any law, that is entitled to expend moneys appropriated by law, including the legislature and the courts, but not including an authority created in subch. II of ch. 114 or subch. III of ch. 149 or in ch. 231, 233, 234, 237, 260, or 279.

SB562, s. 18 Section 18. 16.53 (2) of the statutes, as affected by 2007 Wisconsin Act 20, is amended to read:

SB562,12,21 16.53 (2) Improper invoices. If an agency receives an improperly completed invoice, the agency shall notify the sender of the invoice within 10 working days after it receives the invoice of the reason it is improperly completed. In this subsection, "agency" means an office, department, independent agency, institution of higher education, association, society, or other body in state government created or authorized to be created by the constitution or any law, that is entitled to expend moneys appropriated by law, including the legislature and the courts, but not including an authority created in subch. II of ch. 114 or subch. III of ch. 149 or in ch. 231, 233, 234, 237, 260, or 279.

SB562, s. 19 Section 19. 16.54 (9) (a) 1. of the statutes, as affected by 2007 Wisconsin Act 20, is amended to read:

SB562,13,4 16.54 (9) (a) 1. "Agency" means an office, department, independent agency, institution of higher education, association, society or other body in state government created or authorized to be created by the constitution or any law, which is entitled to expend moneys appropriated by law, including the legislature and the courts, but not including an authority created in subch. II of ch. 114 or subch. III of ch. 149 or in ch. 231, 233, 234, 237, 260, or 279.

SB562, s. 20 Section 20. 16.70 (2) of the statutes, as affected by 2007 Wisconsin Act 20, is amended to read:

SB562,13,8 16.70 (2) "Authority" means a body created under subch. II of ch. 114 or subch. III of ch. 149 or under ch. 231, 232, 233, 234, 235, 237, 260, or 279.

SB562, s. 21 Section 21. 16.765 (1) of the statutes, as affected by 2007 Wisconsin Act 20, is amended to read:

SB562,13,21 16.765 (1) Contracting agencies, the University of Wisconsin Hospitals and Clinics Authority, the Fox River Navigational System Authority, the Wisconsin Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority, the Healthy Wisconsin Authority, the Lower Fox River Remediation Authority, and the Bradley Center Sports and Entertainment Corporation shall include in all contracts executed by them a provision obligating the contractor not to discriminate against any employee or applicant for employment because of age, race, religion, color, handicap, sex, physical condition, developmental disability as defined in s. 51.01 (5), sexual orientation as defined in s. 111.32 (13m), or national origin and, except with respect to sexual orientation, obligating the contractor to take affirmative action to ensure equal employment opportunities.

SB562, s. 22 Section 22. 16.765 (2) of the statutes, as affected by 2007 Wisconsin Act 20, is amended to read:

SB562,14,15 16.765 (2) Contracting agencies, the University of Wisconsin Hospitals and Clinics Authority, the Fox River Navigational System Authority, the Wisconsin Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority, the Healthy Wisconsin Authority, the Lower Fox River Remediation Authority, and the Bradley Center Sports and Entertainment Corporation shall include the following provision in every contract executed by them: "In connection with the performance of work under this contract, the contractor agrees not to discriminate against any employee or applicant for employment because of age, race, religion, color, handicap, sex, physical condition, developmental disability as defined in s. 51.01 (5), sexual orientation or national origin. This provision shall include, but not be limited to, the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. Except with respect to sexual orientation, the contractor further agrees to take affirmative action to ensure equal employment opportunities. The contractor agrees to post in conspicuous places, available for employees and applicants for employment, notices to be provided by the contracting officer setting forth the provisions of the nondiscrimination clause".

SB562, s. 23 Section 23. 16.765 (4) of the statutes, as affected by 2007 Wisconsin Act 20, is amended to read:

SB562,14,23 16.765 (4) Contracting agencies, the University of Wisconsin Hospitals and Clinics Authority, the Fox River Navigational System Authority, the Wisconsin Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority, the Healthy Wisconsin Authority, the Lower Fox River Remediation Authority, and the Bradley Center Sports and Entertainment Corporation shall take appropriate action to revise the standard government contract forms under this section.

SB562, s. 24 Section 24. 16.765 (5) of the statutes, as affected by 2007 Wisconsin Act 20, is amended to read:

SB562,15,17 16.765 (5) The head of each contracting agency and the boards of directors of the University of Wisconsin Hospitals and Clinics Authority, the Fox River Navigational System Authority, the Wisconsin Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority, the Healthy Wisconsin Authority, the Lower Fox River Remediation Authority, and the Bradley Center Sports and Entertainment Corporation shall be primarily responsible for obtaining compliance by any contractor with the nondiscrimination and affirmative action provisions prescribed by this section, according to procedures recommended by the department. The department shall make recommendations to the contracting agencies and the boards of directors of the University of Wisconsin Hospitals and Clinics Authority, the Fox River Navigational System Authority, the Wisconsin Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority, the Healthy Wisconsin Authority, the Lower Fox River Remediation Authority, and the Bradley Center Sports and Entertainment Corporation for improving and making more effective the nondiscrimination and affirmative action provisions of contracts. The department shall promulgate such rules as may be necessary for the performance of its functions under this section.

SB562, s. 25 Section 25. 16.765 (6) of the statutes, as affected by 2007 Wisconsin Act 20, is amended to read:

SB562,16,3 16.765 (6) The department may receive complaints of alleged violations of the nondiscrimination provisions of such contracts. The department shall investigate and determine whether a violation of this section has occurred. The department may delegate this authority to the contracting agency, the University of Wisconsin Hospitals and Clinics Authority, the Fox River Navigational System Authority, the Wisconsin Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority, the Healthy Wisconsin Authority, the Lower Fox River Remediation Authority, or the Bradley Center Sports and Entertainment Corporation for processing in accordance with the department's procedures.

SB562, s. 26 Section 26. 16.765 (7) (intro.) of the statutes, as affected by 2007 Wisconsin Act 20, is amended to read:

SB562,16,16 16.765 (7) (intro.) When a violation of this section has been determined by the department, the contracting agency, the University of Wisconsin Hospitals and Clinics Authority, the Fox River Navigational System Authority, the Wisconsin Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority, the Healthy Wisconsin Authority, the Lower Fox River Remediation Authority, or the Bradley Center Sports and Entertainment Corporation, the contracting agency, the University of Wisconsin Hospitals and Clinics Authority, the Fox River Navigational System Authority, the Wisconsin Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority, the Healthy Wisconsin Authority, the Lower Fox River Remediation Authority, or the Bradley Center Sports and Entertainment Corporation shall:

SB562, s. 27 Section 27. 16.765 (7) (d) of the statutes, as affected by 2007 Wisconsin Act 20, is amended to read:

SB562,16,25 16.765 (7) (d) Direct the violating party to take immediate steps to prevent further violations of this section and to report its corrective action to the contracting agency, the University of Wisconsin Hospitals and Clinics Authority, the Fox River Navigational System Authority, the Wisconsin Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority, the Healthy Wisconsin Authority, the Lower Fox River Remediation Authority, or the Bradley Center Sports and Entertainment Corporation.

SB562, s. 28 Section 28. 16.765 (8) of the statutes, as affected by 2007 Wisconsin Act 20, is amended to read:

SB562,17,19 16.765 (8) If further violations of this section are committed during the term of the contract, the contracting agency, the Fox River Navigational System Authority, the Wisconsin Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority, the Healthy Wisconsin Authority, the Lower Fox River Remediation Authority, or the Bradley Center Sports and Entertainment Corporation may permit the violating party to complete the contract, after complying with this section, but thereafter the contracting agency, the Fox River Navigational System Authority, the Wisconsin Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority, the Healthy Wisconsin Authority, the Lower Fox River Remediation Authority, or the Bradley Center Sports and Entertainment Corporation shall request the department to place the name of the party on the ineligible list for state contracts, or the contracting agency, the Fox River Navigational System Authority, the Wisconsin Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority, the Healthy Wisconsin Authority, the Lower Fox River Remediation Authority, or the Bradley Center Sports and Entertainment Corporation may terminate the contract without liability for the uncompleted portion or any materials or services purchased or paid for by the contracting party for use in completing the contract.

SB562, s. 29 Section 29. 16.85 (2) of the statutes, as affected by 2007 Wisconsin Act 20, is amended to read:

SB562,18,6 16.85 (2) To furnish engineering, architectural, project management, and other building construction services whenever requisitions therefor are presented to the department by any agency. The department may deposit moneys received from the provision of these services in the account under s. 20.505 (1) (kc) or in the general fund as general purpose revenue — earned. In this subsection, "agency" means an office, department, independent agency, institution of higher education, association, society, or other body in state government created or authorized to be created by the constitution or any law, which is entitled to expend moneys appropriated by law, including the legislature and the courts, but not including an authority created in subch. II of ch. 114 or subch. III of ch. 149 or in ch. 231, 233, 234, 237, 260, or 279.

SB562, s. 30 Section 30. 16.865 (8) of the statutes, as affected by 2007 Wisconsin Act 20, is amended to read:

SB562,18,23 16.865 (8) Annually in each fiscal year, allocate as a charge to each agency a proportionate share of the estimated costs attributable to programs administered by the agency to be paid from the appropriation under s. 20.505 (2) (k). The department may charge premiums to agencies to finance costs under this subsection and pay the costs from the appropriation on an actual basis. The department shall deposit all collections under this subsection in the appropriation account under s. 20.505 (2) (k). Costs assessed under this subsection may include judgments, investigative and adjustment fees, data processing and staff support costs, program administration costs, litigation costs, and the cost of insurance contracts under sub. (5). In this subsection, "agency" means an office, department, independent agency, institution of higher education, association, society, or other body in state government created or authorized to be created by the constitution or any law, that is entitled to expend moneys appropriated by law, including the legislature and the courts, but not including an authority created in subch. II of ch. 114 or subch. III of ch. 149 or in ch. 231, 232, 233, 234, 235, 237, 260, or 279.

SB562, s. 31 Section 31. 20.855 (4m) of the statutes is created to read:

SB562,19,5 20.855 (4m) Healthy Wisconsin Plan. (s) Healthy Wisconsin Authority. From the Healthy Wisconsin trust fund, a sum sufficient to pay the Healthy Wisconsin Authority for the operation and funding of the Healthy Wisconsin Plan under ch. 260. Estimated disbursements under this paragraph shall not be included in the schedule under s. 20.005.

SB562, s. 32 Section 32. 25.17 (1) (gd) of the statutes is created to read:

SB562,19,7 25.17 (1) (gd) Healthy Wisconsin trust fund (s. 25.775).

SB562, s. 33 Section 33. 25.775 of the statutes is created to read:

SB562,19,11 25.775 Healthy Wisconsin trust fund. (1) There is established a separate, nonlapsible trust fund designated as the Healthy Wisconsin trust fund, consisting of all moneys appropriated or transferred to or deposited in the fund.

SB562, s. 34 Section 34. 40.05 (4) (a) 4. of the statutes is created to read:

SB562,19,15 40.05 (4) (a) 4. This paragraph does not apply to any insured employee or retired insured employee who receives health care coverage under the Healthy Wisconsin Plan under ch. 260.

SB562, s. 35 Section 35. 40.05 (4) (ag) (intro.) of the statutes is amended to read:

SB562,19,21 40.05 (4) (ag) (intro.) Beginning on January 1, 2004, except as otherwise provided in accordance with a collective bargaining agreement under subch. I or V of ch. 111 or s. 230.12 or 233.10, the employer shall pay for its currently employed insured employees who are not covered under the Healthy Wisconsin Plan under ch. 260:

SB562, s. 36 Section 36. 40.05 (4) (ar) of the statutes is repealed.

SB562, s. 37 Section 37. 40.05 (4) (b) of the statutes is amended to read:

SB562,21,6 40.05 (4) (b) Except as provided under pars. (bc) and (bp), accumulated unused sick leave under ss. 13.121 (4), 36.30, 230.35 (2), 233.10, and 757.02 (5) and subch. I or V of ch. 111 of any eligible employee shall, at the time of death, upon qualifying for an immediate annuity or for a lump sum payment under s. 40.25 (1) or upon termination of creditable service and qualifying as an eligible employee under s. 40.02 (25) (b) 6. or 10., be converted, at the employee's highest basic pay rate he or she received while employed by the state, to credits for payment of health insurance premiums on behalf of the employee or the employee's surviving insured dependents. Any supplemental compensation that is paid to a state employee who is classified under the state classified civil service as a teacher, teacher supervisor, or education director for the employee's completion of educational courses that have been approved by the employee's employer is considered as part of the employee's basic pay for purposes of this paragraph. The full premium for any eligible employee who is insured at the time of retirement, or for the surviving insured dependents of an eligible employee who is deceased, shall be deducted from the credits until the credits are exhausted and paid from the account under s. 40.04 (10), and then deducted from annuity payments, if the annuity is sufficient. The department shall provide for the direct payment of premiums by the insured to the insurer if the premium to be withheld exceeds the annuity payment. Upon conversion of an employee's unused sick leave to credits under this paragraph or par. (bf), the employee or, if the employee is deceased, the employee's surviving insured dependents may initiate deductions from those credits or may elect to delay initiation of deductions from those credits, but only if the employee or surviving insured dependents are covered by a comparable health insurance plan or policy during the period beginning on the date of the conversion and ending on the date on which the employee or surviving insured dependents later elect to initiate deductions from those credits. If an employee or an employee's surviving insured dependents elect to delay initiation of deductions from those credits, an employee or the employee's surviving insured dependents may only later elect to initiate deductions from those credits during the annual enrollment period under par. (be). A health insurance plan or policy is considered comparable if it provides hospital and medical benefits that are substantially equivalent to the standard health insurance plan established under s. 40.52 (1) benefits provided under the Healthy Wisconsin Plan under ch. 260.

SB562, s. 38 Section 38. 40.05 (4) (be) of the statutes is amended to read:

SB562,21,22 40.05 (4) (be) The department shall establish an annual enrollment period during which an employee or, if the employee is deceased, an employee's surviving insured dependents may elect to initiate or delay continuation of deductions from the employee's sick leave credits under par. (b). An employee or surviving insured dependent may elect to continue or delay continuation of such deductions any number of times. If an employee or surviving insured dependent has initiated the deductions but later elects to delay continuation of the deductions, the employee or surviving insured dependent must be covered by a comparable health insurance plan or policy during the period beginning on the date on which the employee or surviving insured dependent delays continuation of the deductions and ending on the date on which the employee or surviving insured dependent later elects to continue the deductions. A health insurance plan or policy is considered comparable if it provides hospital and medical benefits that are substantially equivalent to the standard health insurance plan established under s. 40.52 (1) benefits provided under the Healthy Wisconsin Plan under ch. 260.

SB562, s. 39 Section 39. 40.05 (4g) (d) of the statutes is created to read:

SB562,22,3 40.05 (4g) (d) This subsection shall not apply to an eligible employee who is receiving health care coverage under the Healthy Wisconsin Plan under ch. 260 while on active duty in the U.S. armed forces.

SB562, s. 40 Section 40. 40.51 (1) of the statutes is amended to read:

SB562,22,10 40.51 (1) The procedures and provisions pertaining to enrollment, premium transmitted and coverage of eligible employees for health care benefits shall be established by contract or rule except as otherwise specifically provided by this chapter. Notwithstanding subs. (6) and (7), an eligible employee who is covered under the Healthy Wisconsin Plan under ch. 260 may not receive coverage under this subchapter for any coverage provided the employee under ch. 260.

SB562, s. 41 Section 41. 40.51 (2) of the statutes is amended to read:

SB562,23,2 40.51 (2) Except as provided in subs. (10), (10m), (11) and (16), any eligible employee may become covered by group health insurance benefits under this subchapter by electing coverage within 30 days of being hired, to be effective as of the first day of the month which begins on or after the date the application is received by the employer, or by electing coverage prior to becoming eligible for any employer contribution towards the premium cost as provided in s. 40.05 (4) (a) to be effective upon becoming eligible for employer contributions. An eligible employee who is not insured, but who is eligible for an employer contribution under s. 40.05 (4) (ag) 1., may elect coverage prior to becoming eligible for an employer contribution under s. 40.05 (4) (ag) 2., with the coverage to be effective upon becoming eligible for the increase in the employer contribution. Any employee who does not so elect at one of these times, or who subsequently cancels the insurance, shall not thereafter become insured unless the employee furnishes evidence of insurability satisfactory to the insurer, at the employee's own expense or obtains coverage subject to contractual waiting periods. The method to be used shall be specified in the health insurance contract.

SB562, s. 42 Section 42. 40.51 (6) of the statutes is renumbered 40.51 (6) (a) and amended to read:

SB562,23,13 40.51 (6) (a) This state shall offer to all of its eligible employees described in subs. (10), (10m), and (16) at least 2 insured or uninsured health care coverage plans providing substantially equivalent hospital and medical benefits, including a health maintenance organization or a preferred provider plan, if those health care plans are determined by the group insurance board to be available in the area of the place of employment and are approved by the group insurance board. The group insurance board shall place each of the plans into one of 3 tiers established in accordance with standards adopted by the group insurance board. The tiers shall be separated according to the employee's share of premium costs.

SB562, s. 43 Section 43. 40.51 (6) (b) of the statutes is created to read: