The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB194, s. 1 1Section 1. 20.435 (4) (bn) of the statutes is amended to read:
AB194,4,52 20.435 (4) (bn) Income maintenance. Biennially, the amounts in the schedule
3for funeral expenses under s. 49.785, for administration of the food stamp
4employment and training program under s. 49.79 (9), for the performance of income

1maintenance administrative activities on behalf of a local entity, as defined in s.
230.77 (3) (dm) 1. b.,
and for payments under s. 49.78 (8) relating to the administration
3of the Medical Assistance program under subch. IV of ch. 49, the Badger Care health
4care program under s. 49.665, the food stamp program, and the cemetery, funeral,
5and burial expenses program under s. 49.785.
AB194, s. 2 6Section 2. 20.435 (4) (im) of the statutes is amended to read:
AB194,4,177 20.435 (4) (im) Medical assistance; correct payment recovery; collections; other
8recoveries.
All moneys received from the recovery of correct medical assistance
9payments under ss. 49.496 and 867.035 and rules promulgated under s. 46.286 (7)
10and, all moneys received as collections and other recoveries from providers, drug
11manufacturers, and other 3rd parties under medical assistance performance-based
12contracts, and all moneys credited to this appropriation account under s. 49.89 (7)
13(f),
for payments to counties and tribal governing bodies under s. 49.496 (4) (a), for
14payment of claims under s. 867.035 (3), for payments to the federal government for
15its share of medical assistance benefits recovered, for the state share of medical
16assistance benefits provided under subch. IV of ch. 49, and for costs related to
17collections and other recoveries.
AB194, s. 3 18Section 3. 20.435 (4) (L) of the statutes is amended to read:
AB194,5,319 20.435 (4) (L) Fraud and error reduction. All moneys received as the state's
20share of the recovery of overpayments and incorrect payments under ss. 49.847,
2149.497 (1) and (1m), and 49.793 (2) (a), and 49.847, all moneys received from counties
22and tribal governing bodies as a result of any error reduction activities under ss.
2349.197 and 49.845, and all moneys credited to this appropriation account under ss.
2449.497 (2) (b), 49.793 (2) (b), and 49.847 (3) (b),
for any contracts under s. 49.197 (5),
25for any activities to reduce error and fraud under s. 49.845, to pay federal sanctions

1under the food stamp program, and for food stamp reinvestment activities under
2reinvestment agreements with the federal department of agriculture that are
3designed to improve the food stamp program.
AB194, s. 4 4Section 4. 40.02 (25) (b) 2c. of the statutes is created to read:
AB194,5,55 40.02 (25) (b) 2c. A state employee described in s. 49.825 (4).
AB194, s. 5 6Section 5. 40.05 (4) (a) 2. of the statutes is amended to read:
AB194,5,207 40.05 (4) (a) 2. For an insured employee who is an eligible employee under s.
840.02 (25) (a) 2. or (b) 1m. or 2c., the employer shall pay required employer
9contributions toward the health insurance premium of the insured employee
10beginning on the date on which the employee becomes insured. For an insured state
11employee who is currently employed, but who is not a limited term appointment
12under s. 230.26 or an eligible employee under s. 40.02 (25) (a) 2. or (b) 1m. or 2c., the
13employer shall pay required employer contributions toward the health insurance
14premium of the insured employee beginning on the first day of the 3rd month
15beginning after the date on which the employee begins employment with the state,
16not including any leave of absence. For an insured employee who has a limited term
17appointment under s. 230.26, the employer shall pay required employer
18contributions toward the health insurance premium of the insured employee
19beginning on the first day of the 7th month beginning after the date on which the
20employee first becomes a participating employee.
AB194, s. 6 21Section 6. 40.22 (2) (m) of the statutes is created to read:
AB194,6,222 40.22 (2) (m) Notwithstanding sub. (3m), the employee was formerly employed
23by Milwaukee County, is a state employee described in s. 49.825 (4), and elects to
24remain a covered employee under the retirement system established under chapter
25201, laws of 1937
, pursuant to s. 49.825 (4) (c). This paragraph shall not apply if the

1employee remains a state employee, but is no longer performing services for the
2Milwaukee County enrollment services unit under s. 49.825.
AB194, s. 7 3Section 7. 40.62 (2) of the statutes is amended to read:
AB194,6,64 40.62 (2) Sick leave accumulation shall be determined in accordance with rules
5of the department, any collective bargaining agreement under subch. I or V of ch. 111,
6and ss. 13.121 (4), 36.30, 49.825 (4) (d), 230.35 (2), 233.10, 757.02 (5) and 978.12 (3).
AB194, s. 8 7Section 8. 46.215 (1) (intro.) of the statutes is amended to read:
AB194,6,188 46.215 (1) Creation; powers and duties. (intro.) In a county with a population
9of 500,000 or more the administration of welfare services, other than child welfare
10services under s. 48.48 (17) administered by the department and except as provided
11in s. 49.825
, is vested in a county department of social services under the jurisdiction
12of the county board of supervisors under s. 46.21 (2m) (b) 1. a. Any reference in any
13law to a county department of social services under this section applies to a county
14department under s. 46.21 (2m) in its administration under s. 46.21 (2m) of the
15powers and duties of the county department of social services. The Except as
16provided in s. 49.825, the
county department of social services shall have the
17following functions, duties and powers, and such other welfare functions as may be
18delegated to it:
AB194, s. 9 19Section 9. 49.496 (4) of the statutes is renumbered 49.496 (4) (a) and amended
20to read:
AB194,7,1021 49.496 (4) (a) The department may require a county department under s.
2246.215, 46.22, or 46.23 or the governing body of a federally recognized American
23Indian tribe administering medical assistance to gather and provide the department
24with information needed to recover medical assistance under this section. The
25Except as provided in par. (b), the department shall pay to a county department or

1tribal governing body an amount equal to 5% of the recovery collected by the
2department relating to a beneficiary for whom the county department or tribal
3governing body made the last determination of medical assistance eligibility. A
4county department or tribal governing body may use funds received under this
5subsection paragraph only to pay costs incurred under this subsection paragraph
6and, if any amount remains, to pay for improvements to functions required under s.
749.78 (2). The department may withhold payments under this subsection paragraph
8for failure to comply with the department's requirements under this subsection
9paragraph. The department shall treat payments made under this subsection
10paragraph as costs of administration of the Medical Assistance program.
AB194, s. 10 11Section 10. 49.496 (4) (b) of the statutes is created to read:
AB194,7,1612 49.496 (4) (b) The department shall credit to the appropriation account under
13s. 20.435 (4) (im) any amount that the department would otherwise pay under par.
14(a) to a county department under s. 46.215 for any recovery collected by a department
15employee or officer, or by a county employee or officer under the management of the
16department.
AB194, s. 11 17Section 11. 49.496 (5) of the statutes is amended to read:
AB194,7,2318 49.496 (5) Use of funds. From the appropriation under s. 20.435 (4) (im), the
19department shall pay the amount of the payments under sub. (4) (a) that is not paid
20from federal funds, shall pay to the federal government the amount of the funds
21recovered under this section equal to the amount of federal funds used to pay the
22benefits recovered under this section, and shall spend the remainder of the funds
23recovered under this section for medical assistance benefits under this subchapter.
AB194, s. 12 24Section 12. 49.497 (2) of the statutes is renumbered 49.497 (2) (a) and
25amended to read:
AB194,8,4
149.497 (2) (a) A Except as provided in par. (b), a county or governing body of
2a federally recognized American Indian tribe may retain 15% of benefits provided
3under this subchapter or s. 49.665 that are recovered under this section due to the
4efforts of an employee or officer of the county or tribe.
AB194, s. 13 5Section 13. 49.497 (2) (b) of the statutes is created to read:
AB194,8,96 49.497 (2) (b) Any amount that Milwaukee County would otherwise be entitled
7to retain under par. (a) for benefits recovered due to the efforts of a department
8employee or officer, or a county employee or officer under the management of the
9department, shall be credited to the appropriation account under s. 20.435 (4) (L).
AB194, s. 14 10Section 14. 49.78 (2) of the statutes is amended to read:
AB194,8,1811 49.78 (2) Contracts. Annually, for the income maintenance program
12functions, if any, that the department delegates to a county or tribal governing body,

13the department shall contract with and county departments department under ss.
14s. 46.215, 46.22, and or 46.23 shall enter into a contract, and the department and
15tribal governing body
may enter into a contract with tribal governing bodies, to
16reimburse the county departments and tribal governing bodies
, for reimbursement
17of the county department or tribal governing body
for the reasonable cost of
18administering income maintenance programs.
AB194, s. 15 19Section 15. 49.78 (10) (a) of the statutes is amended to read:
AB194,9,520 49.78 (10) (a) Each county treasurer and director of a county department under
21s. 46.215, 46.22, or 46.23 that contracts with the department under sub. (2) and each
22tribal governing body that contracts with the department under sub. (2) shall certify
23monthly under oath to the department in such manner as the department prescribes
24the claim of the county or tribal governing body for state reimbursement under sub.
25(8) (a). The department shall review each claim of reimbursement and, if the

1department approves the claim, the department shall certify to the department of
2administration for reimbursement to the county or tribal governing body for
3amounts due under sub. (8) (a) and payment claimed to be made to the counties or
4tribal governing bodies
monthly. The department may make advance payments
5prior to the beginning of each month equal to one-twelfth of the contracted amount.
AB194, s. 16 6Section 16. 49.785 (1) (intro.) of the statutes is amended to read:
AB194,9,147 49.785 (1) (intro.) Except as provided in sub. (1m) and subject to s. 49.825, if
8any recipient specified in sub. (1c) dies and the estate of the deceased recipient is
9insufficient to pay the funeral, burial, and cemetery expenses of the deceased
10recipient, the department or county or applicable tribal governing body or
11organization responsible for burial of the recipient shall pay, to the person
12designated by the department or county department under s. 46.215, 46.22, or 46.23
13or applicable tribal governing body or organization responsible for the burial of the
14recipient, all of the following:
AB194, s. 17 15Section 17. 49.785 (1m) (a) of the statutes is amended to read:
AB194,9,1916 49.785 (1m) (a) If the total cemetery expenses for the recipient exceed $3,500,
17the department or county or applicable tribal governing body or organization
18responsible for burial of the recipient is not required to make a payment for the
19cemetery expenses under sub. (1) (a).
AB194, s. 18 20Section 18. 49.785 (1m) (b) of the statutes is amended to read:
AB194,9,2421 49.785 (1m) (b) If the total funeral and burial expenses for the recipient exceed
22$3,500, the department or county or applicable tribal governing body or organization
23responsible for burial of the recipient is not required to make a payment for funeral
24and burial expenses under sub. (1) (b).
AB194, s. 19 25Section 19. 49.785 (1m) (c) of the statutes is amended to read:
AB194,10,4
149.785 (1m) (c) If a request for payment under sub. (1) is made more than 12
2months after the death of the recipient, the department or county or applicable tribal
3governing body or organization responsible for burial of the recipient is not required
4to make a payment for cemetery, funeral, or burial expenses.
AB194, s. 20 5Section 20. 49.793 (2) of the statutes is renumbered 49.793 (2) (a) and
6amended to read:
AB194,10,147 49.793 (2) (a) A Except as provided in par. (b), a county or governing body of
8a federally recognized American Indian tribe may retain a portion of the amount of
9an overpayment the state is authorized to retain under 7 USC 2025 which that is
10recovered under sub. (1) due to the efforts of an employee or officer of the county or
11tribe. The department shall promulgate a rule establishing the portion of the
12amount of the overpayment that the county or governing body may retain. This
13subsection paragraph does not apply to recovery of an overpayment that was made
14as a result of state, county, or tribal governing body error.
AB194, s. 21 15Section 21. 49.793 (2) (b) of the statutes is created to read:
AB194,10,2016 49.793 (2) (b) Any amount that Milwaukee County would otherwise be entitled
17to retain under par. (a) for the recovery of an overpayment due to the efforts of a
18department employee or officer, or a county employee or officer under the
19management of the department, shall be credited to the appropriation account under
20s. 20.435 (4) (L).
AB194, s. 22 21Section 22. 49.825 of the statutes is created to read:
AB194,10,23 2249.825 Department administration in Milwaukee County. (1)
23Definitions. In this section:
AB194,10,2424 (a) "County" means Milwaukee County.
AB194,10,2525 (b) "Department" means the department of health services.
AB194,11,1
1(c) "Income maintenance program" has the meaning given in s. 49.78 (1) (b).
AB194,11,22 (d) "Secretary" means the secretary of health services.
AB194,11,33 (e) "Unit" means the Milwaukee County enrollment services unit.
AB194,11,6 4(2) Establishment of unit. (a) The department shall establish a Milwaukee
5County enrollment services unit under s. 15.02 (3) (c) 3. to determine eligibility under
6and administer the following public assistance programs in the county:
AB194,11,77 1. Income maintenance programs.
AB194,11,88 2. The programs under ss. 49.77 and 49.775.
AB194,11,109 3. To the extent contracted under par. (b), the child care subsidy program under
10s. 49.155.
AB194,11,1311 (b) The department of children and families may enter into a contract with the
12department of health services that provides for the performance of eligibility and
13authorization functions under the program under s. 49.155 in the county by the unit.
AB194,11,1614 (c) The department may enter into a contract with the county that provides for
15the performance by the county of any of the administrative functions under this
16subsection.
AB194,11,2017 (d) 1. The department shall reimburse the county for all approved, allowable
18costs that exceed the amounts specified in subd. 2. and that are incurred by the
19county under a contract with the department for the operation of the public
20assistance programs under par. (a) in the county.
AB194,12,221 2. In 2009 the county shall expend at least $3,559,800, for which the county
22shall not be reimbursed by the department, for the operation of income maintenance
23programs in the county. In each year thereafter, the county's unreimbursed required
24minimum expenditure for the operation of income maintenance programs in the
25county shall increase by the percentage increase in annual wage and benefit costs

1paid with respect to county employees performing services under this section for the
2unit.
AB194,12,9 3(3) Division of employment-related functions. (a) Supervisory personnel in
4the unit shall be state employees. Nonsupervisory staff performing services under
5this section for the unit may be a combination of state employees and employees of
6Milwaukee County. For the performance of services under this section for the unit,
7the county shall maintain no fewer represented authorized full-time employee
8positions than the number of represented full-time employee positions that were
9authorized on February 1, 2009, for performance of the same types of services.
AB194,12,1310 (b) 1. The department shall have the authority to hire, transfer, suspend, lay
11off, recall, promote, discharge, assign, reward, discipline, and adjust grievances with
12respect to, and state supervisory employees may supervise, county employees
13performing services under this section for the unit.
AB194,12,1614 2. For the purposes under subd. 1., the department shall use the same process
15and procedures under ch. 230 that are used for the classified service of the state civil
16service system, including specifically the use of probationary periods under s. 230.28.
AB194,12,1917 3. County employees performing services under this section for the unit shall
18be subject to the residency requirements that apply to other county employees under
19the county's civil service rules.
AB194,12,2520 4. The department may enter into a memorandum of understanding, as
21described under s. 111.70 (3m), with the certified representative of the county
22employees performing services under this section for the unit. If there is a dispute
23as to hours or conditions of employment that remains between the department and
24the certified representative after a good faith effort to resolve it, the department may
25unilaterally resolve the dispute.
AB194,13,2
1(c) The county shall perform all administrative tasks related to payroll and
2benefits for the county employees performing services under this section for the unit.
AB194,13,7 3(4) Treatment of former county employees appointed to state employee
4positions in the unit.
All of the following shall apply to an employee who is appointed
5to a state employee position in the unit after the effective date of this subsection ....
6[LRB inserts date], and who, immediately prior to his or her appointment, was a
7county employee:
AB194,13,108 (a) The employee shall serve any applicable probationary period under s.
9230.28, but shall have his or her seniority with the state computed by treating the
10employee's total service with the county as state service.
AB194,13,1211 (b) Annual leave for the employee shall accrue at the rate provided in s. 230.35
12using the employee's state service computed under par. (a).
AB194,13,2113 (c) 1. The employee may remain a participating employee in the retirement
14system established under chapter 201, laws of 1937. To remain under the retirement
15system established under chapter 201, laws of 1937, the employee must exercise this
16option in writing, on a form provided by the department, at the time the employee
17is appointed to a state employee position. The employee shall exercise this option,
18in writing, no later than 10 days after the employee is appointed to a state employee
19position. An employee's decision to remain a participating employee in the
20retirement system established under chapter 201, laws of 1937, is irrevocable during
21the period that the employee is holding a state employee position in the unit.
AB194,13,2422 2. The secretary shall pay, on behalf of the employee, all required employer
23contributions under the retirement system established under chapter 201, laws of
241937
.
AB194,14,9
1(d) The employee shall have his or her sick leave accrued with the state
2computed by treating the employee's unused balance of sick leave accrued with the
3county as sick leave accrued in state service, but not to exceed the amount of sick
4leave the employee would have accrued in state service for the same period, if the
5employee is able to provide adequate documentation in accounting for sick leave used
6during the accrual period with the county. Sick leave that transfers under this
7paragraph is not subject to a right of conversion, under s. 40.05 (4) or otherwise, upon
8death or termination of creditable service for payment of health insurance benefits
9on behalf of the employee or the employee's dependents.
AB194, s. 23 10Section 23. 49.847 (3) of the statutes is renumbered 49.847 (3) (a) and
11amended to read:
AB194,14,1512 49.847 (3) (a) Subject to ss. 49.497 (2) and 49.793 (2), and except as provided
13in par. (b)
, a county or elected governing body may retain a portion of an amount
14recovered under this section due to the efforts of an employee or officer of the county,
15tribe, or band, as provided by the department by rule.
AB194, s. 24 16Section 24. 49.847 (3) (b) of the statutes is created to read:
AB194,14,2117 49.847 (3) (b) Any amount that Milwaukee County would otherwise be entitled
18to retain under par. (a) for the recovery of an amount under this section due to the
19efforts of a department employee or officer, or a county employee or officer under the
20management of the department, shall be credited to the appropriation account under
21s. 20.435 (4) (L).
AB194, s. 25 22Section 25. 49.89 (7) (a) of the statutes is amended to read:
AB194,14,2523 49.89 (7) (a) Any Except as provided in par. (f), any county or elected tribal
24governing body that has made a recovery under this section shall receive an incentive
25payment from the sum recovered as provided under this subsection.
AB194, s. 26
1Section 26. 49.89 (7) (f) of the statutes is created to read:
AB194,15,62 49.89 (7) (f) The amount of any incentive payment to which Milwaukee County
3would otherwise be entitled under this subsection for a recovery under this section
4due to the efforts of an employee or officer of the department of health services, or
5a county employee or officer under the management of the department of health
6services, shall be credited to the appropriation account under s. 20.435 (4) (im).
AB194, s. 27 7Section 27. 63.03 (2) (r) of the statutes is created to read:
AB194,15,98 63.03 (2) (r) All staff performing services for the Milwaukee County enrollment
9services unit under s. 49.825.
AB194, s. 28 10Section 28. 111.70 (1) (a) of the statutes is amended to read:
AB194,16,811 111.70 (1) (a) "Collective bargaining" means the performance of the mutual
12obligation of a municipal employer, through its officers and agents, and the
13representative of its municipal employees in a collective bargaining unit, to meet and
14confer at reasonable times, in good faith, with the intention of reaching an
15agreement, or to resolve questions arising under such an agreement, with respect to
16wages, hours and conditions of employment, and with respect to a requirement of the
17municipal employer for a municipal employee to perform law enforcement and fire
18fighting services under s. 61.66, except as provided in sub. subs. (3m) and (4) (m) and
19s. 40.81 (3) and except that a municipal employer shall not meet and confer with
20respect to any proposal to diminish or abridge the rights guaranteed to municipal
21employees under ch. 164. The duty to bargain, however, does not compel either party
22to agree to a proposal or require the making of a concession. Collective bargaining
23includes the reduction of any agreement reached to a written and signed document.
24The municipal employer shall not be required to bargain on subjects reserved to
25management and direction of the governmental unit except insofar as the manner

1of exercise of such functions affects the wages, hours and conditions of employment
2of the municipal employees in a collective bargaining unit. In creating this
3subchapter the legislature recognizes that the municipal employer must exercise its
4powers and responsibilities to act for the government and good order of the
5jurisdiction which it serves, its commercial benefit and the health, safety and welfare
6of the public to assure orderly operations and functions within its jurisdiction,
7subject to those rights secured to municipal employees by the constitutions of this
8state and of the United States and by this subchapter.
AB194, s. 29 9Section 29. 111.70 (3m) of the statutes is created to read:
AB194,16,1510 111.70 (3m) Milwaukee county enrollment services unit. A collective
11bargaining agreement that covers municipal employees performing services for the
12Milwaukee County enrollment services unit under s. 49.825 shall contain a provision
13that permits the terms of the agreement to be modified with respect to hours and
14conditions of employment by a memorandum of understanding under s. 49.825 (3)
15(b) 4.
AB194, s. 30 16Section 30. 230.44 (1) (h) of the statutes is created to read:
AB194,16,1917 230.44 (1) (h) Decisions affecting Milwaukee County employees by the
18department of health services.
A decision of the department of health services
19relating to a Milwaukee County employee under s. 49.825 (3) (b).
AB194, s. 31 20Section 31. Nonstatutory provisions.
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