SB562,8,324 13.62 (2) "Agency" means any board, commission, department, office, society,
25institution of higher education, council, or committee in the state government, or any

1authority created in subch. II of ch. 114 or subch. III of ch. 149 or in ch. 231, 232, 233,
2234, 237, 260, or 279, except that the term does not include a council or committee
3of the legislature.
SB562, s. 4 4Section 4. 13.94 (1) (dj) of the statutes is created to read:
SB562,8,75 13.94 (1) (dj) Annually, conduct a financial audit of the Healthy Wisconsin Plan
6under ch. 260 and file copies of each audit report under this paragraph with the
7distributees specified in par. (b).
SB562, s. 5 8Section 5. 13.94 (1s) (c) 5. of the statutes is created to read:
SB562,8,109 13.94 (1s) (c) 5. The Healthy Wisconsin Authority for the cost of the audit under
10sub. (1) (dj).
SB562, s. 6 11Section 6. 13.95 (intro.) of the statutes, as affected by 2007 Wisconsin Act 20,
12is amended to read:
SB562,8,25 1313.95 Legislative fiscal bureau. (intro.) There is created a bureau to be
14known as the "Legislative Fiscal Bureau" headed by a director. The fiscal bureau
15shall be strictly nonpartisan and shall at all times observe the confidential nature
16of the research requests received by it; however, with the prior approval of the
17requester in each instance, the bureau may duplicate the results of its research for
18distribution. Subject to s. 230.35 (4) (a) and (f), the director or the director's
19designated employees shall at all times, with or without notice, have access to all
20state agencies, the University of Wisconsin Hospitals and Clinics Authority, the
21Wisconsin Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority,
22the Healthy Wisconsin Authority, the Lower Fox River Remediation Authority, and
23the Fox River Navigational System Authority, and to any books, records, or other
24documents maintained by such agencies or authorities and relating to their
25expenditures, revenues, operations, and structure.
SB562, s. 7
1Section 7. 16.002 (2) of the statutes, as affected by 2007 Wisconsin Act 20, is
2amended to read:
SB562,9,73 16.002 (2) "Departments" means constitutional offices, departments, and
4independent agencies and includes all societies, associations, and other agencies of
5state government for which appropriations are made by law, but not including
6authorities created in subch. II of ch. 114 or subch. III of ch. 149 and in chs. 231, 232,
7233, 234, 235, 237, 260, and 279.
SB562, s. 8 8Section 8. 16.004 (4) of the statutes, as affected by 2007 Wisconsin Act 20, is
9amended to read:
SB562,9,1510 16.004 (4) Freedom of access. The secretary and such employees of the
11department as the secretary designates may enter into the offices of state agencies
12and authorities created under subch. II of ch. 114 or subch. III of ch. 149 and under
13chs. 231, 233, 234, 237, 260, and 279, and may examine their books and accounts and
14any other matter that in the secretary's judgment should be examined and may
15interrogate the agency's employees publicly or privately relative thereto.
SB562, s. 9 16Section 9. 16.004 (5) of the statutes, as affected by 2007 Wisconsin Act 20, is
17amended to read:
SB562,9,2218 16.004 (5) Agencies and employees to cooperate. All state agencies and
19authorities created under subch. II of ch. 114 or subch. III of ch. 149 and under chs.
20231, 233, 234, 237, 260, and 279, and their officers and employees, shall cooperate
21with the secretary and shall comply with every request of the secretary relating to
22his or her functions.
SB562, s. 10 23Section 10. 16.004 (7d) of the statutes is created to read:
SB562,9,2524 16.004 (7d) Containment of health care costs. In consultation with the board
25of the Healthy Wisconsin Authority, the secretary shall establish, by rule, a program

1to contain health care costs in this state during any year in which the board
2determines that health care costs increase at a rate exceeding the national average
3of medical inflation, as defined in s. 260.01 (4).
SB562, s. 11 4Section 11. 16.004 (7h) of the statutes is created to read:
SB562,10,105 16.004 (7h) Employer assessments to the Healthy Wisconsin trust fund.
6The secretary shall establish a methodology for allocating employer assessments
7among state agencies to pay the Healthy Wisconsin trust fund for the operation and
8funding of the Healthy Wisconsin Plan under ch. 260. State agencies shall pay, from
9appropriations used to fund fringe benefit costs of state employees, to the Healthy
10Wisconsin trust fund amounts determined by the secretary.
SB562, s. 12 11Section 12. 16.004 (12) (a) of the statutes, as affected by 2007 Wisconsin Act
1220
, is amended to read:
SB562,10,2013 16.004 (12) (a) In this subsection, "state agency" means an association,
14authority, board, department, commission, independent agency, institution, office,
15society, or other body in state government created or authorized to be created by the
16constitution or any law, including the legislature, the office of the governor, and the
17courts, but excluding the University of Wisconsin Hospitals and Clinics Authority,
18the Wisconsin Aerospace Authority, the Health Insurance Risk-Sharing Plan
19Authority, the Healthy Wisconsin Authority, the Lower Fox River Remediation
20Authority, and the Fox River Navigational System Authority.
SB562, s. 13 21Section 13. 16.045 (1) (a) of the statutes, as affected by 2007 Wisconsin Act 20,
22is amended to read:
SB562,11,323 16.045 (1) (a) "Agency" means an office, department, independent agency,
24institution of higher education, association, society, or other body in state
25government created or authorized to be created by the constitution or any law, that

1is entitled to expend moneys appropriated by law, including the legislature and the
2courts, but not including an authority created in subch. II of ch. 114 or subch. III of
3ch. 149 or in ch. 231, 232, 233, 234, 235, 237, 260, or 279.
SB562, s. 14 4Section 14. 16.41 (4) of the statutes, as affected by 2007 Wisconsin Act 20, is
5amended to read:
SB562,11,76 16.41 (4) In this section, "authority" means a body created under subch. II of
7ch. 114 or subch. III of ch. 149 or under ch. 231, 233, 234, 237, 260, or 279.
SB562, s. 15 8Section 15. 16.417 (1) (a) of the statutes is amended to read:
SB562,11,149 16.417 (1) (a) "Agency" means an office, department, independent agency,
10institution of higher education, association, society, or other body in state
11government created or authorized to be created by the constitution or any law, that
12is entitled to expend moneys appropriated by law, including the legislature and the
13courts, but not including an authority or the body created under subch. III of ch. 149
14or under ch. 260
.
SB562, s. 16 15Section 16. 16.52 (7) of the statutes, as affected by 2007 Wisconsin Act 20, is
16amended to read:
SB562,12,217 16.52 (7) Petty cash account. With the approval of the secretary, each agency
18that is authorized to maintain a contingent fund under s. 20.920 may establish a
19petty cash account from its contingent fund. The procedure for operation and
20maintenance of petty cash accounts and the character of expenditures therefrom
21shall be prescribed by the secretary. In this subsection, "agency" means an office,
22department, independent agency, institution of higher education, association,
23society, or other body in state government created or authorized to be created by the
24constitution or any law, that is entitled to expend moneys appropriated by law,

1including the legislature and the courts, but not including an authority created in
2subch. II of ch. 114 or subch. III of ch. 149 or in ch. 231, 233, 234, 237, 260, or 279.
SB562, s. 17 3Section 17. 16.528 (1) (a) of the statutes, as affected by 2007 Wisconsin Act 20,
4is amended to read:
SB562,12,105 16.528 (1) (a) "Agency" means an office, department, independent agency,
6institution of higher education, association, society, or other body in state
7government created or authorized to be created by the constitution or any law, that
8is entitled to expend moneys appropriated by law, including the legislature and the
9courts, but not including an authority created in subch. II of ch. 114 or subch. III of
10ch. 149 or in ch. 231, 233, 234, 237, 260, or 279.
SB562, s. 18 11Section 18. 16.53 (2) of the statutes, as affected by 2007 Wisconsin Act 20, is
12amended to read:
SB562,12,2113 16.53 (2) Improper invoices. If an agency receives an improperly completed
14invoice, the agency shall notify the sender of the invoice within 10 working days after
15it receives the invoice of the reason it is improperly completed. In this subsection,
16"agency" means an office, department, independent agency, institution of higher
17education, association, society, or other body in state government created or
18authorized to be created by the constitution or any law, that is entitled to expend
19moneys appropriated by law, including the legislature and the courts, but not
20including an authority created in subch. II of ch. 114 or subch. III of ch. 149 or in ch.
21231, 233, 234, 237, 260, or 279.
SB562, s. 19 22Section 19. 16.54 (9) (a) 1. of the statutes, as affected by 2007 Wisconsin Act
2320
, is amended to read:
SB562,13,424 16.54 (9) (a) 1. "Agency" means an office, department, independent agency,
25institution of higher education, association, society or other body in state

1government created or authorized to be created by the constitution or any law, which
2is entitled to expend moneys appropriated by law, including the legislature and the
3courts, but not including an authority created in subch. II of ch. 114 or subch. III of
4ch. 149 or in ch. 231, 233, 234, 237, 260, or 279.
SB562, s. 20 5Section 20. 16.70 (2) of the statutes, as affected by 2007 Wisconsin Act 20, is
6amended to read:
SB562,13,87 16.70 (2) "Authority" means a body created under subch. II of ch. 114 or subch.
8III of ch. 149 or under ch. 231, 232, 233, 234, 235, 237, 260, or 279.
SB562, s. 21 9Section 21. 16.765 (1) of the statutes, as affected by 2007 Wisconsin Act 20,
10is amended to read:
SB562,13,2111 16.765 (1) Contracting agencies, the University of Wisconsin Hospitals and
12Clinics Authority, the Fox River Navigational System Authority, the Wisconsin
13Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority, the
14Healthy Wisconsin Authority,
the Lower Fox River Remediation Authority, and the
15Bradley Center Sports and Entertainment Corporation shall include in all contracts
16executed by them a provision obligating the contractor not to discriminate against
17any employee or applicant for employment because of age, race, religion, color,
18handicap, sex, physical condition, developmental disability as defined in s. 51.01 (5),
19sexual orientation as defined in s. 111.32 (13m), or national origin and, except with
20respect to sexual orientation, obligating the contractor to take affirmative action to
21ensure equal employment opportunities.
SB562, s. 22 22Section 22. 16.765 (2) of the statutes, as affected by 2007 Wisconsin Act 20,
23is amended to read:
SB562,14,1524 16.765 (2) Contracting agencies, the University of Wisconsin Hospitals and
25Clinics Authority, the Fox River Navigational System Authority, the Wisconsin

1Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority, the
2Healthy Wisconsin Authority,
the Lower Fox River Remediation Authority, and the
3Bradley Center Sports and Entertainment Corporation shall include the following
4provision in every contract executed by them: "In connection with the performance
5of work under this contract, the contractor agrees not to discriminate against any
6employee or applicant for employment because of age, race, religion, color, handicap,
7sex, physical condition, developmental disability as defined in s. 51.01 (5), sexual
8orientation or national origin. This provision shall include, but not be limited to, the
9following: employment, upgrading, demotion or transfer; recruitment or recruitment
10advertising; layoff or termination; rates of pay or other forms of compensation; and
11selection for training, including apprenticeship. Except with respect to sexual
12orientation, the contractor further agrees to take affirmative action to ensure equal
13employment opportunities. The contractor agrees to post in conspicuous places,
14available for employees and applicants for employment, notices to be provided by the
15contracting officer setting forth the provisions of the nondiscrimination clause".
SB562, s. 23 16Section 23. 16.765 (4) of the statutes, as affected by 2007 Wisconsin Act 20,
17is amended to read:
SB562,14,2318 16.765 (4) Contracting agencies, the University of Wisconsin Hospitals and
19Clinics Authority, the Fox River Navigational System Authority, the Wisconsin
20Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority, the
21Healthy Wisconsin Authority,
the Lower Fox River Remediation Authority, and the
22Bradley Center Sports and Entertainment Corporation shall take appropriate action
23to revise the standard government contract forms under this section.
SB562, s. 24 24Section 24. 16.765 (5) of the statutes, as affected by 2007 Wisconsin Act 20,
25is amended to read:
SB562,15,17
116.765 (5) The head of each contracting agency and the boards of directors of
2the University of Wisconsin Hospitals and Clinics Authority, the Fox River
3Navigational System Authority, the Wisconsin Aerospace Authority, the Health
4Insurance Risk-Sharing Plan Authority, the Healthy Wisconsin Authority, the
5Lower Fox River Remediation Authority, and the Bradley Center Sports and
6Entertainment Corporation shall be primarily responsible for obtaining compliance
7by any contractor with the nondiscrimination and affirmative action provisions
8prescribed by this section, according to procedures recommended by the department.
9The department shall make recommendations to the contracting agencies and the
10boards of directors of the University of Wisconsin Hospitals and Clinics Authority,
11the Fox River Navigational System Authority, the Wisconsin Aerospace Authority,
12the Health Insurance Risk-Sharing Plan Authority, the Healthy Wisconsin
13Authority,
the Lower Fox River Remediation Authority, and the Bradley Center
14Sports and Entertainment Corporation for improving and making more effective the
15nondiscrimination and affirmative action provisions of contracts. The department
16shall promulgate such rules as may be necessary for the performance of its functions
17under this section.
SB562, s. 25 18Section 25. 16.765 (6) of the statutes, as affected by 2007 Wisconsin Act 20,
19is amended to read:
SB562,16,320 16.765 (6) The department may receive complaints of alleged violations of the
21nondiscrimination provisions of such contracts. The department shall investigate
22and determine whether a violation of this section has occurred. The department may
23delegate this authority to the contracting agency, the University of Wisconsin
24Hospitals and Clinics Authority, the Fox River Navigational System Authority, the
25Wisconsin Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority,

1the Healthy Wisconsin Authority, the Lower Fox River Remediation Authority, or the
2Bradley Center Sports and Entertainment Corporation for processing in accordance
3with the department's procedures.
SB562, s. 26 4Section 26. 16.765 (7) (intro.) of the statutes, as affected by 2007 Wisconsin
5Act 20
, is amended to read:
SB562,16,166 16.765 (7) (intro.) When a violation of this section has been determined by the
7department, the contracting agency, the University of Wisconsin Hospitals and
8Clinics Authority, the Fox River Navigational System Authority, the Wisconsin
9Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority, the
10Healthy Wisconsin Authority,
the Lower Fox River Remediation Authority, or the
11Bradley Center Sports and Entertainment Corporation, the contracting agency, the
12University of Wisconsin Hospitals and Clinics Authority, the Fox River Navigational
13System Authority, the Wisconsin Aerospace Authority, the Health Insurance
14Risk-Sharing Plan Authority, the Healthy Wisconsin Authority, the Lower Fox River
15Remediation Authority, or the Bradley Center Sports and Entertainment
16Corporation shall:
SB562, s. 27 17Section 27. 16.765 (7) (d) of the statutes, as affected by 2007 Wisconsin Act 20,
18is amended to read:
SB562,16,2519 16.765 (7) (d) Direct the violating party to take immediate steps to prevent
20further violations of this section and to report its corrective action to the contracting
21agency, the University of Wisconsin Hospitals and Clinics Authority, the Fox River
22Navigational System Authority, the Wisconsin Aerospace Authority, the Health
23Insurance Risk-Sharing Plan Authority, the Healthy Wisconsin Authority, the
24Lower Fox River Remediation Authority, or the Bradley Center Sports and
25Entertainment Corporation.
SB562, s. 28
1Section 28. 16.765 (8) of the statutes, as affected by 2007 Wisconsin Act 20,
2is amended to read:
SB562,17,193 16.765 (8) If further violations of this section are committed during the term
4of the contract, the contracting agency, the Fox River Navigational System Authority,
5the Wisconsin Aerospace Authority, the Health Insurance Risk-Sharing Plan
6Authority, the Healthy Wisconsin Authority, the Lower Fox River Remediation
7Authority, or the Bradley Center Sports and Entertainment Corporation may permit
8the violating party to complete the contract, after complying with this section, but
9thereafter the contracting agency, the Fox River Navigational System Authority, the
10Wisconsin Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority,
11the Healthy Wisconsin Authority, the Lower Fox River Remediation Authority, or the
12Bradley Center Sports and Entertainment Corporation shall request the
13department to place the name of the party on the ineligible list for state contracts,
14or the contracting agency, the Fox River Navigational System Authority, the
15Wisconsin Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority,
16the Healthy Wisconsin Authority, the Lower Fox River Remediation Authority, or the
17Bradley Center Sports and Entertainment Corporation may terminate the contract
18without liability for the uncompleted portion or any materials or services purchased
19or paid for by the contracting party for use in completing the contract.
SB562, s. 29 20Section 29. 16.85 (2) of the statutes, as affected by 2007 Wisconsin Act 20, is
21amended to read:
SB562,18,622 16.85 (2) To furnish engineering, architectural, project management, and other
23building construction services whenever requisitions therefor are presented to the
24department by any agency. The department may deposit moneys received from the
25provision of these services in the account under s. 20.505 (1) (kc) or in the general

1fund as general purpose revenue — earned. In this subsection, "agency" means an
2office, department, independent agency, institution of higher education, association,
3society, or other body in state government created or authorized to be created by the
4constitution or any law, which is entitled to expend moneys appropriated by law,
5including the legislature and the courts, but not including an authority created in
6subch. II of ch. 114 or subch. III of ch. 149 or in ch. 231, 233, 234, 237, 260, or 279.
SB562, s. 30 7Section 30. 16.865 (8) of the statutes, as affected by 2007 Wisconsin Act 20,
8is amended to read:
SB562,18,239 16.865 (8) Annually in each fiscal year, allocate as a charge to each agency a
10proportionate share of the estimated costs attributable to programs administered by
11the agency to be paid from the appropriation under s. 20.505 (2) (k). The department
12may charge premiums to agencies to finance costs under this subsection and pay the
13costs from the appropriation on an actual basis. The department shall deposit all
14collections under this subsection in the appropriation account under s. 20.505 (2) (k).
15Costs assessed under this subsection may include judgments, investigative and
16adjustment fees, data processing and staff support costs, program administration
17costs, litigation costs, and the cost of insurance contracts under sub. (5). In this
18subsection, "agency" means an office, department, independent agency, institution
19of higher education, association, society, or other body in state government created
20or authorized to be created by the constitution or any law, that is entitled to expend
21moneys appropriated by law, including the legislature and the courts, but not
22including an authority created in subch. II of ch. 114 or subch. III of ch. 149 or in ch.
23231, 232, 233, 234, 235, 237, 260, or 279.
SB562, s. 31 24Section 31. 20.855 (4m) of the statutes is created to read:
SB562,19,5
120.855 (4m) Healthy Wisconsin Plan. (s) Healthy Wisconsin Authority. From
2the Healthy Wisconsin trust fund, a sum sufficient to pay the Healthy Wisconsin
3Authority for the operation and funding of the Healthy Wisconsin Plan under ch. 260.
4Estimated disbursements under this paragraph shall not be included in the schedule
5under s. 20.005.
SB562, s. 32 6Section 32. 25.17 (1) (gd) of the statutes is created to read:
SB562,19,77 25.17 (1) (gd) Healthy Wisconsin trust fund (s. 25.775).
SB562, s. 33 8Section 33. 25.775 of the statutes is created to read:
SB562,19,11 925.775 Healthy Wisconsin trust fund. (1) There is established a separate,
10nonlapsible trust fund designated as the Healthy Wisconsin trust fund, consisting
11of all moneys appropriated or transferred to or deposited in the fund.
SB562, s. 34 12Section 34. 40.05 (4) (a) 4. of the statutes is created to read:
SB562,19,1513 40.05 (4) (a) 4. This paragraph does not apply to any insured employee or
14retired insured employee who receives health care coverage under the Healthy
15Wisconsin Plan under ch. 260.
SB562, s. 35 16Section 35. 40.05 (4) (ag) (intro.) of the statutes is amended to read:
SB562,19,2117 40.05 (4) (ag) (intro.) Beginning on January 1, 2004, except as otherwise
18provided in accordance with a collective bargaining agreement under subch. I or V
19of ch. 111 or s. 230.12 or 233.10, the employer shall pay for its currently employed
20insured employees who are not covered under the Healthy Wisconsin Plan under ch.
21260
:
SB562, s. 36 22Section 36. 40.05 (4) (ar) of the statutes is repealed.
SB562, s. 37 23Section 37. 40.05 (4) (b) of the statutes is amended to read:
SB562,21,624 40.05 (4) (b) Except as provided under pars. (bc) and (bp), accumulated unused
25sick leave under ss. 13.121 (4), 36.30, 230.35 (2), 233.10, and 757.02 (5) and subch.

1I or V of ch. 111 of any eligible employee shall, at the time of death, upon qualifying
2for an immediate annuity or for a lump sum payment under s. 40.25 (1) or upon
3termination of creditable service and qualifying as an eligible employee under s.
440.02 (25) (b) 6. or 10., be converted, at the employee's highest basic pay rate he or
5she received while employed by the state, to credits for payment of health insurance
6premiums on behalf of the employee or the employee's surviving insured dependents.
7Any supplemental compensation that is paid to a state employee who is classified
8under the state classified civil service as a teacher, teacher supervisor, or education
9director for the employee's completion of educational courses that have been
10approved by the employee's employer is considered as part of the employee's basic
11pay for purposes of this paragraph. The full premium for any eligible employee who
12is insured at the time of retirement, or for the surviving insured dependents of an
13eligible employee who is deceased, shall be deducted from the credits until the credits
14are exhausted and paid from the account under s. 40.04 (10), and then deducted from
15annuity payments, if the annuity is sufficient. The department shall provide for the
16direct payment of premiums by the insured to the insurer if the premium to be
17withheld exceeds the annuity payment. Upon conversion of an employee's unused
18sick leave to credits under this paragraph or par. (bf), the employee or, if the employee
19is deceased, the employee's surviving insured dependents may initiate deductions
20from those credits or may elect to delay initiation of deductions from those credits,
21but only if the employee or surviving insured dependents are covered by a
22comparable health insurance plan or policy during the period beginning on the date
23of the conversion and ending on the date on which the employee or surviving insured
24dependents later elect to initiate deductions from those credits. If an employee or an
25employee's surviving insured dependents elect to delay initiation of deductions from

1those credits, an employee or the employee's surviving insured dependents may only
2later elect to initiate deductions from those credits during the annual enrollment
3period under par. (be). A health insurance plan or policy is considered comparable
4if it provides hospital and medical benefits that are substantially equivalent to the
5standard health insurance plan established under s. 40.52 (1)
benefits provided
6under the Healthy Wisconsin Plan under ch. 260
.
SB562, s. 38 7Section 38. 40.05 (4) (be) of the statutes is amended to read:
SB562,21,228 40.05 (4) (be) The department shall establish an annual enrollment period
9during which an employee or, if the employee is deceased, an employee's surviving
10insured dependents may elect to initiate or delay continuation of deductions from the
11employee's sick leave credits under par. (b). An employee or surviving insured
12dependent may elect to continue or delay continuation of such deductions any
13number of times. If an employee or surviving insured dependent has initiated the
14deductions but later elects to delay continuation of the deductions, the employee or
15surviving insured dependent must be covered by a comparable health insurance plan
16or policy during the period beginning on the date on which the employee or surviving
17insured dependent delays continuation of the deductions and ending on the date on
18which the employee or surviving insured dependent later elects to continue the
19deductions. A health insurance plan or policy is considered comparable if it provides
20hospital and medical benefits that are substantially equivalent to the standard
21health insurance plan established under s. 40.52 (1)
benefits provided under the
22Healthy Wisconsin Plan under ch. 260
.
SB562, s. 39 23Section 39. 40.05 (4g) (d) of the statutes is created to read:
SB562,22,3
140.05 (4g) (d) This subsection shall not apply to an eligible employee who is
2receiving health care coverage under the Healthy Wisconsin Plan under ch. 260
3while on active duty in the U.S. armed forces.
SB562, s. 40 4Section 40. 40.51 (1) of the statutes is amended to read:
SB562,22,105 40.51 (1) The procedures and provisions pertaining to enrollment, premium
6transmitted and coverage of eligible employees for health care benefits shall be
7established by contract or rule except as otherwise specifically provided by this
8chapter. Notwithstanding subs. (6) and (7), an eligible employee who is covered
9under the Healthy Wisconsin Plan under ch. 260 may not receive coverage under this
10subchapter for any coverage provided the employee under ch. 260.
SB562, s. 41 11Section 41. 40.51 (2) of the statutes is amended to read:
SB562,23,212 40.51 (2) Except as provided in subs. (10), (10m), (11) and (16), any eligible
13employee may become covered by group health insurance benefits under this
14subchapter
by electing coverage within 30 days of being hired, to be effective as of
15the first day of the month which begins on or after the date the application is received
16by the employer, or by electing coverage prior to becoming eligible for any employer
17contribution towards the premium cost as provided in s. 40.05 (4) (a) to be effective
18upon becoming eligible for employer contributions. An eligible employee who is not
19insured, but who is eligible for an employer contribution under s. 40.05 (4) (ag) 1.,
20may elect coverage prior to becoming eligible for an employer contribution under s.
2140.05 (4) (ag) 2., with the coverage to be effective upon becoming eligible for the
22increase in the employer contribution.
Any employee who does not so elect at one of
23these times, or who subsequently cancels the insurance, shall not thereafter become
24insured unless the employee furnishes evidence of insurability satisfactory to the
25insurer, at the employee's own expense or obtains coverage subject to contractual

1waiting periods. The method to be used shall be specified in the health insurance
2contract.
SB562, s. 42 3Section 42. 40.51 (6) of the statutes is renumbered 40.51 (6) (a) and amended
4to read:
SB562,23,135 40.51 (6) (a) This state shall offer to all of its eligible employees described in
6subs. (10), (10m), and (16)
at least 2 insured or uninsured health care coverage plans
7providing substantially equivalent hospital and medical benefits, including a health
8maintenance organization or a preferred provider plan, if those health care plans are
9determined by the group insurance board to be available in the area of the place of
10employment and are
approved by the group insurance board. The group insurance
11board shall place each of the plans into one of 3 tiers established in accordance with
12standards adopted by the group insurance board. The tiers shall be separated
13according to the employee's share of premium costs.
SB562, s. 43 14Section 43. 40.51 (6) (b) of the statutes is created to read:
SB562,23,1715 40.51 (6) (b) The state may offer to its employees coverage for health care
16benefits not provided to the employees under the Healthy Wisconsin Plan under ch.
17260.
SB562, s. 44 18Section 44. 40.51 (7) of the statutes is amended to read:
SB562,24,219 40.51 (7) Any employer, other than the state, may offer to all of its employees
20 a health care coverage plan coverage for health care benefits not provided to the
21employees under the Healthy Wisconsin Plan under ch. 260
through a program
22offered by the group insurance board. Notwithstanding sub. (2) and ss. 40.05 (4) and
2340.52 (1), the department may by rule establish different eligibility standards or
24contribution requirements for such employees and employers and may by rule limit

1the categories of employers, other than the state, which may be included as
2participating employers under this subchapter.
SB562, s. 45 3Section 45. 40.51 (8) of the statutes, as affected by 2007 Wisconsin Act 36, is
4amended to read:
SB562,24,85 40.51 (8) Every health care coverage plan offered by the state under sub. (6)
6(a) shall comply with ss. 631.89, 631.90, 631.93 (2), 631.95, 632.72 (2), 632.746 (1) to
7(8) and (10), 632.747, 632.748, 632.83, 632.835, 632.85, 632.853, 632.855, 632.87 (3)
8to (5) (6), 632.895 (5m) and (8) to (15), and 632.896.
SB562, s. 46 9Section 46. 40.51 (8m) of the statutes, as affected by 2007 Wisconsin Act 36,
10is amended to read:
SB562,24,1411 40.51 (8m) Every health care coverage plan offered by the group insurance
12board under sub. subs. (6) (b) and (7) shall comply with ss. 631.89, 631.90, 631.93 (2),
13631.95, 632.72 (2), 632.746 (1) to (8) and (10), 632.747, 632.748, 632.83, 632.835,
14632.85, 632.853, 632.855, and 632.895 (11) to (15) 632.87 (3) to (6).
SB562, s. 47 15Section 47. 40.52 (1) (intro.) of the statutes is amended to read:
SB562,24,1916 40.52 (1) (intro.) The group insurance board shall establish by contract a
17standard health insurance plan in which all insured employees shall participate
18except as otherwise provided in this chapter. The Except as provided in sub. (1m),
19the
standard plan shall provide:
SB562, s. 48 20Section 48. 40.52 (1m) of the statutes is created to read:
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