AB977,12 21Section 12 . 16.004 (12) (a) of the statutes is amended to read:
AB977,8,422 16.004 (12) (a) In this subsection, “state agency" means an association,
23authority, board, department, commission, independent agency, institution, office,
24society, or other body in state government created or authorized to be created by the
25constitution or any law, including the legislature, the office of the governor, and the

1courts, but excluding the University of Wisconsin Hospitals and Clinics Authority,
2the Wisconsin Aerospace Authority, the Lower Fox River Remediation Authority, the
3Wisconsin Quality Home Care Authority,
the Wisconsin Economic Development
4Corporation, and the Fox River Navigational System Authority.
AB977,13 5Section 13 . 16.045 (1) (a) of the statutes is amended to read:
AB977,8,116 16.045 (1) (a) “Agency" means an office, department, independent agency,
7institution of higher education, association, society, or other body in state
8government created or authorized to be created by the constitution or any law, that
9is entitled to expend moneys appropriated by law, including the legislature and the
10courts, but not including an authority created in subch. II of ch. 114 or in ch. 52, 231,
11232, 233, 234, 237, 238, or 279.
AB977,14 12Section 14 . 16.15 (1) (ab) of the statutes is amended to read:
AB977,8,1613 16.15 (1) (ab) “Authority" has the meaning given under s. 16.70 (2), but
14excludes the University of Wisconsin Hospitals and Clinics Authority, the Lower Fox
15River Remediation Authority, the Wisconsin Quality Home Care Authority, and the
16Wisconsin Economic Development Corporation.
AB977,15 17Section 15 . 16.41 (4) of the statutes is amended to read:
AB977,8,1918 16.41 (4) In this section, “authority" means a body created under subch. II of
19ch. 114 or under ch. 52, 231, 233, 234, 237, 238, or 279.
AB977,16 20Section 16 . 16.417 (1) (b) of the statutes is amended to read:
AB977,8,2221 16.417 (1) (b) “Authority" means a body created under subch. II of ch. 114 or
22ch. 52, 231, 232, 233, 234, 237, 238, or 279.
AB977,17 23Section 17 . 16.50 (3) (e) of the statutes is amended to read:
AB977,9,3
116.50 (3) (e) No pay increase may be approved unless it is at the rate or within
2the pay ranges prescribed in the compensation plan or as provided in a collective
3bargaining agreement under subch. V or VI of ch. 111.
AB977,18 4Section 18 . 16.52 (7) of the statutes is amended to read:
AB977,9,145 16.52 (7) Petty cash account. With the approval of the secretary, each agency
6that is authorized to maintain a contingent fund under s. 20.920 may establish a
7petty cash account from its contingent fund. The procedure for operation and
8maintenance of petty cash accounts and the character of expenditures therefrom
9shall be prescribed by the secretary. In this subsection, “agency" means an office,
10department, independent agency, institution of higher education, association,
11society, or other body in state government created or authorized to be created by the
12constitution or any law, that is entitled to expend moneys appropriated by law,
13including the legislature and the courts, but not including an authority created in
14subch. II of ch. 114 or in ch. 52, 231, 233, 234, 237, 238, or 279.
AB977,19 15Section 19 . 16.528 (1) (a) of the statutes is amended to read:
AB977,9,2116 16.528 (1) (a) “Agency" means an office, department, independent agency,
17institution of higher education, association, society, or other body in state
18government created or authorized to be created by the constitution or any law, that
19is entitled to expend moneys appropriated by law, including the legislature and the
20courts, but not including an authority created in subch. II of ch. 114 or in ch. 52, 231,
21233, 234, 237, 238, or 279.
AB977,20 22Section 20 . 16.53 (2) of the statutes is amended to read:
AB977,9,2523 16.53 (2) Improper invoices. If an agency receives an improperly completed
24invoice, the agency shall notify the sender of the invoice within 10 working days after
25it receives the invoice of the reason it is improperly completed. In this subsection,

1“agency" means an office, department, independent agency, institution of higher
2education, association, society, or other body in state government created or
3authorized to be created by the constitution or any law, that is entitled to expend
4moneys appropriated by law, including the legislature and the courts, but not
5including an authority created in subch. II of ch. 114 or in ch. 52, 231, 233, 234, 237,
6238, or 279.
AB977,21 7Section 21 . 16.54 (9) (a) 1. of the statutes is amended to read:
AB977,10,138 16.54 (9) (a) 1. “Agency" means an office, department, independent agency,
9institution of higher education, association, society, or other body in state
10government created or authorized to be created by the constitution or any law, which
11is entitled to expend moneys appropriated by law, including the legislature and the
12courts, but not including an authority created in subch. II of ch. 114 or in ch. 52, 231,
13233, 234, 237, 238, or 279.
AB977,22 14Section 22 . 16.70 (2) of the statutes is amended to read:
AB977,10,1615 16.70 (2) “Authority" means a body created under subch. II of ch. 114 or under
16ch. 52, 231, 232, 233, 234, 237, or 279.
AB977,23 17Section 23. 16.705 (3) of the statutes is created to read:
AB977,10,2118 16.705 (3) The division of personnel management, prior to award, under
19conditions established by rule of the department, shall review contracts for
20contractual services in order to ensure that all agencies, except the University of
21Wisconsin System, do all of the following:
AB977,10,2222 (a) Properly utilize the services of state employees.
AB977,10,2423 (b) Evaluate the feasibility of using limited term appointments prior to
24entering into a contract for contractual services.
AB977,11,2
1(c) Do not enter into any contract for contractual services in conflict with any
2collective bargaining agreement under subch. V or VI of ch. 111.
AB977,24 3Section 24 . 16.765 (1) of the statutes is amended to read:
AB977,11,144 16.765 (1) Contracting agencies, the University of Wisconsin Hospitals and
5Clinics Authority, the Fox River Navigational System Authority, the Wisconsin
6Aerospace Authority, the Lower Fox River Remediation Authority, the Wisconsin
7Quality Home Care Authority,
the Wisconsin Economic Development Corporation,
8and the Bradley Center Sports and Entertainment Corporation shall include in all
9contracts executed by them a provision obligating the contractor not to discriminate
10against any employee or applicant for employment because of age, race, religion,
11color, handicap, sex, physical condition, developmental disability as defined in s.
1251.01 (5), sexual orientation as defined in s. 111.32 (13m), or national origin and,
13except with respect to sexual orientation, obligating the contractor to take
14affirmative action to ensure equal employment opportunities.
AB977,25 15Section 25 . 16.765 (2) of the statutes is amended to read:
AB977,12,816 16.765 (2) Contracting agencies, the University of Wisconsin Hospitals and
17Clinics Authority, the Fox River Navigational System Authority, the Wisconsin
18Aerospace Authority, the Lower Fox River Remediation Authority, the Wisconsin
19Quality Home Care Authority,
the Wisconsin Economic Development Corporation,
20and the Bradley Center Sports and Entertainment Corporation shall include the
21following provision in every contract executed by them: “In connection with the
22performance of work under this contract, the contractor agrees not to discriminate
23against any employee or applicant for employment because of age, race, religion,
24color, handicap, sex, physical condition, developmental disability as defined in s.
2551.01 (5), sexual orientation or national origin. This provision shall include, but not

1be limited to, the following: employment, upgrading, demotion or transfer;
2recruitment or recruitment advertising; layoff or termination; rates of pay or other
3forms of compensation; and selection for training, including apprenticeship. Except
4with respect to sexual orientation, the contractor further agrees to take affirmative
5action to ensure equal employment opportunities. The contractor agrees to post in
6conspicuous places, available for employees and applicants for employment, notices
7to be provided by the contracting officer setting forth the provisions of the
8nondiscrimination clause".."
AB977,26 9Section 26 . 16.765 (4) of the statutes is amended to read:
AB977,12,1510 16.765 (4) Contracting agencies, the University of Wisconsin Hospitals and
11Clinics Authority, the Fox River Navigational System Authority, the Wisconsin
12Aerospace Authority, the Lower Fox River Remediation Authority, the Wisconsin
13Quality Home Care Authority,
and the Bradley Center Sports and Entertainment
14Corporation shall take appropriate action to revise the standard government
15contract forms under this section.
AB977,27 16Section 27 . 16.765 (5) of the statutes is amended to read:
AB977,13,817 16.765 (5) The head of each contracting agency and the boards of directors of
18the University of Wisconsin Hospitals and Clinics Authority, the Fox River
19Navigational System Authority, the Wisconsin Aerospace Authority, the Lower Fox
20River Remediation Authority, the Wisconsin Quality Home Care Authority, the
21Wisconsin Economic Development Corporation, and the Bradley Center Sports and
22Entertainment Corporation shall be primarily responsible for obtaining compliance
23by any contractor with the nondiscrimination and affirmative action provisions
24prescribed by this section, according to procedures recommended by the department.
25The department shall make recommendations to the contracting agencies and the

1boards of directors of the University of Wisconsin Hospitals and Clinics Authority,
2the Fox River Navigational System Authority, the Wisconsin Aerospace Authority,
3the Lower Fox River Remediation Authority, the Wisconsin Quality Home Care
4Authority,
the Wisconsin Economic Development Corporation, and the Bradley
5Center Sports and Entertainment Corporation for improving and making more
6effective the nondiscrimination and affirmative action provisions of contracts. The
7department shall promulgate such rules as may be necessary for the performance of
8its functions under this section.
AB977,28 9Section 28 . 16.765 (6) of the statutes is amended to read:
AB977,13,1810 16.765 (6) The department may receive complaints of alleged violations of the
11nondiscrimination provisions of such contracts. The department shall investigate
12and determine whether a violation of this section has occurred. The department may
13delegate this authority to the contracting agency, the University of Wisconsin
14Hospitals and Clinics Authority, the Fox River Navigational System Authority, the
15Wisconsin Aerospace Authority, the Lower Fox River Remediation Authority, the
16Wisconsin Quality Home Care Authority,
the Wisconsin Economic Development
17Corporation, or the Bradley Center Sports and Entertainment Corporation for
18processing in accordance with the department's procedures.
AB977,29 19Section 29 . 16.765 (7) (intro.) of the statutes is amended to read:
AB977,14,520 16.765 (7) (intro.) When a violation of this section has been determined by the
21department, the contracting agency, the University of Wisconsin Hospitals and
22Clinics Authority, the Fox River Navigational System Authority, the Wisconsin
23Aerospace Authority, the Lower Fox River Remediation Authority, the Wisconsin
24Quality Home Care Authority,
the Wisconsin Economic Development Corporation,
25or the Bradley Center Sports and Entertainment Corporation, the contracting

1agency, the University of Wisconsin Hospitals and Clinics Authority, the Fox River
2Navigational System Authority, the Wisconsin Aerospace Authority, the Lower Fox
3River Remediation Authority, the Wisconsin Quality Home Care Authority, the
4Wisconsin Economic Development Corporation, or the Bradley Center Sports and
5Entertainment Corporation shall:
AB977,30 6Section 30 . 16.765 (7) (d) of the statutes is amended to read:
AB977,14,137 16.765 (7) (d) Direct the violating party to take immediate steps to prevent
8further violations of this section and to report its corrective action to the contracting
9agency, the University of Wisconsin Hospitals and Clinics Authority, the Fox River
10Navigational System Authority, the Wisconsin Aerospace Authority, the Lower Fox
11River Remediation Authority, the Wisconsin Quality Home Care Authority, the
12Wisconsin Economic Development Corporation, or the Bradley Center Sports and
13Entertainment Corporation.
AB977,31 14Section 31 . 16.765 (8) of the statutes is amended to read:
AB977,15,715 16.765 (8) If further violations of this section are committed during the term
16of the contract, the contracting agency, the Fox River Navigational System Authority,
17the Wisconsin Aerospace Authority, the Lower Fox River Remediation Authority, the
18Wisconsin Quality Home Care Authority,
the Wisconsin Economic Development
19Corporation, or the Bradley Center Sports and Entertainment Corporation may
20permit the violating party to complete the contract, after complying with this section,
21but thereafter the contracting agency, the Fox River Navigational System Authority,
22the Wisconsin Aerospace Authority, the Lower Fox River Remediation Authority, the
23Wisconsin Quality Home Care Authority,
the Wisconsin Economic Development
24Corporation, or the Bradley Center Sports and Entertainment Corporation shall
25request the department to place the name of the party on the ineligible list for state

1contracts, or the contracting agency, the Fox River Navigational System Authority,
2the Wisconsin Aerospace Authority, the Lower Fox River Remediation Authority, the
3Wisconsin Quality Home Care Authority,
the Wisconsin Economic Development
4Corporation, or the Bradley Center Sports and Entertainment Corporation may
5terminate the contract without liability for the uncompleted portion or any materials
6or services purchased or paid for by the contracting party for use in completing the
7contract.
AB977,32 8Section 32 . 16.85 (2) of the statutes is amended to read:
AB977,15,189 16.85 (2) To furnish engineering, architectural, project management, and other
10building construction services whenever requisitions therefor are presented to the
11department by any agency. The department may deposit moneys received from the
12provision of these services in the account under s. 20.505 (1) (kc) or in the general
13fund as general purpose revenue — earned. In this subsection, “agency" means an
14office, department, independent agency, institution of higher education, association,
15society, or other body in state government created or authorized to be created by the
16constitution or any law, which is entitled to expend moneys appropriated by law,
17including the legislature and the courts, but not including an authority created in
18subch. II of ch. 114 or in ch. 52, 231, 233, 234, 237, 238, or 279.
AB977,33 19Section 33 . 16.865 (8) of the statutes is amended to read:
AB977,16,920 16.865 (8) Annually in each fiscal year, allocate as a charge to each agency a
21proportionate share of the estimated costs attributable to programs administered by
22the agency to be paid from the appropriation under s. 20.505 (2) (k). The department
23may charge premiums to agencies to finance costs under this subsection and pay the
24costs from the appropriation on an actual basis. The department shall deposit all
25collections under this subsection in the appropriation account under s. 20.505 (2) (k).

1Costs assessed under this subsection may include judgments, investigative and
2adjustment fees, data processing and staff support costs, program administration
3costs, litigation costs, and the cost of insurance contracts under sub. (5). In this
4subsection, “agency" means an office, department, independent agency, institution
5of higher education, association, society, or other body in state government created
6or authorized to be created by the constitution or any law, that is entitled to expend
7moneys appropriated by law, including the legislature and the courts, but not
8including an authority created in subch. II of ch. 114 or in ch. 52, 231, 232, 233, 234,
9237, 238, or 279.
AB977,34 10Section 34 . 19.42 (10) (s) of the statutes is created to read:
AB977,16,1211 19.42 (10) (s) The executive director and members of the board of directors of
12the Wisconsin Quality Home Care Authority.
AB977,35 13Section 35. 19.42 (13) (o) of the statutes is created to read:
AB977,16,1514 19.42 (13) (o) The executive director and members of the board of directors of
15the Wisconsin Quality Home Care Authority.
AB977,36 16Section 36 . 19.82 (1) of the statutes is amended to read:
AB977,16,2517 19.82 (1) “Governmental body" means a state or local agency, board,
18commission, committee, council, department or public body corporate and politic
19created by constitution, statute, ordinance, rule or order; a governmental or
20quasi-governmental corporation except for the Bradley center sports and
21entertainment corporation; a local exposition district under subch. II of ch. 229; a
22long-term care district under s. 46.2895; or a formally constituted subunit of any of
23the foregoing, but excludes any such body or committee or subunit of such body which
24is formed for or meeting for the purpose of collective bargaining under subch. I, IV,
25or
V, or VI of ch. 111.
AB977,37
1Section 37. 19.85 (3) of the statutes is amended to read:
AB977,17,52 19.85 (3) Nothing in this subchapter shall be construed to authorize a
3governmental body to consider at a meeting in closed session the final ratification or
4approval of a collective bargaining agreement under subch. I, IV, or V, or VI of ch. 111
5which has been negotiated by such body or on its behalf.
AB977,38 6Section 38 . 19.86 of the statutes is amended to read:
AB977,17,12 719.86 Notice of collective bargaining negotiations. Notwithstanding s.
819.82 (1), where notice has been given by either party to a collective bargaining
9agreement under subch. I, IV, or V, or VI of ch. 111 to reopen such agreement at its
10expiration date, the employer shall give notice of such contract reopening as provided
11in s. 19.84 (1) (b). If the employer is not a governmental body, notice shall be given
12by the employer's chief officer or such person's designee.
AB977,39 13Section 39 . 20.425 (1) (a) of the statutes is amended to read:
AB977,17,1514 20.425 (1) (a) General program operations. The amounts in the schedule for
15the purposes provided in subchs. I, IV, and V , and VI of ch. 111 and s. 230.45 (1).
AB977,40 16Section 40 . 20.425 (1) (i) of the statutes is amended to read:
AB977,18,417 20.425 (1) (i) Fees, collective bargaining training, publications, and appeals.
18The amounts in the schedule for the performance of fact-finding, mediation,
19certification, and arbitration functions, for the provision of copies of transcripts, for
20the cost of operating training programs under ss. 111.09 (3), 111.71 (5m) (5), and
21111.94 (3), for the preparation of publications, transcripts, reports, and other copied
22material, and for costs related to conducting appeals under s. 230.45. All moneys
23received under ss. 111.09 (1) and (2), 111.70 (4) (d) 3. b., 111.71 (1) and (2), 111.83 (3)
24(b),
111.94 (1) and (2), 111.9993, and 230.45 (3), all moneys received from arbitrators
25and arbitration panel members, and individuals who are interested in serving in

1such positions, and from individuals and organizations who participate in other
2collective bargaining training programs conducted by the commission, and all
3moneys received from the sale of publications, transcripts, reports, and other copied
4material shall be credited to this appropriation account.
AB977,41 5Section 41 . 20.505 (1) (ks) of the statutes is amended to read:
AB977,18,166 20.505 (1) (ks) Collective bargaining grievance arbitrations. The amounts in
7the schedule for the payment of the state's share of costs related to collective
8bargaining grievance arbitrations under s. 111.86 and related to collective
9bargaining grievance arbitrations under s. 111.993
. All moneys received from state
10agencies for the purpose of reimbursing the state's share of the costs related to
11grievance arbitrations under s. 111.86 and to reimburse the state's share of costs for
12training related to grievance arbitrations, and all moneys received from institutions,
13as defined in s. 36.05 (9), for the purpose of reimbursing the state's share of the costs
14related to grievance arbitrations under s. 111.993 and to reimburse the state's share
15of costs for training related to grievance arbitrations
shall be credited to this
16appropriation account.
AB977,42 17Section 42 . 20.505 (1) (kz) of the statutes is amended to read:
AB977,18,2418 20.505 (1) (kz) General program operations. The amounts in the schedule to
19administer state employment relations functions and the civil service system under
20subch. subchs. V and VI of ch. 111 and ch. 230, to pay awards under s. 230.48, and
21to defray the expenses of the state employees suggestion board. All moneys received
22from state agencies for materials and services provided by the division of personnel
23management in the department of administration shall be credited to this
24appropriation.
AB977,43 25Section 43 . 20.917 (3) (b) of the statutes is amended to read:
AB977,19,4
120.917 (3) (b) This subsection applies to employees in all positions in the civil
2service, including those employees in positions included in collective bargaining
3units under subch. V or VI of ch. 111, whether or not the employees are covered by
4a collective bargaining agreement.
AB977,44 5Section 44 . 20.921 (1) (a) 2. of the statutes is amended to read:
AB977,19,76 20.921 (1) (a) 2. If the state employee is a public safety employee under s. 111.81
7(15r), payment
Payment of dues to employee organizations.
AB977,45 8Section 45 . 20.923 (6) (intro.) of the statutes is amended to read:
AB977,19,139 20.923 (6) Salaries set by appointing authorities. (intro.) Salaries for the
10following positions may be set by the appointing authority, subject to restrictions
11otherwise set forth in the statutes and the compensation plan under s. 230.12, except
12where the salaries are a subject of bargaining with a certified representative of a
13collective bargaining unit under s. 111.91 or 111.998:
AB977,46 14Section 46 . 36.09 (1) (j) of the statutes is amended to read:
AB977,20,1215 36.09 (1) (j) Except where such matters are a subject of bargaining with a
16certified representative of a collective bargaining unit under s. 111.91 or 111.998, the
17board shall establish salaries for persons prior to July 1 of each year for the next fiscal
18year, and shall designate the effective dates for payment of the new salaries. In the
19first year of the biennium, payments of the salaries established for the preceding
20year shall be continued until the biennial budget bill is enacted. If the budget is
21enacted after July 1, payments shall be made following enactment of the budget to
22satisfy the obligations incurred on the effective dates, as designated by the board, for
23the new salaries, subject only to the appropriation of funds by the legislature and s.
2420.928 (3). This paragraph does not limit the authority of the board to establish
25salaries for new appointments. The board may not increase the salaries of employees

1under this paragraph unless the salary increase conforms to the proposal as
2approved under s. 230.12 (3) (e) or the board authorizes the salary increase to
3recognize merit, to correct salary inequities under par. (h), to fund job
4reclassifications or promotions, or to recognize competitive factors. The granting of
5salary increases to recognize competitive factors does not obligate inclusion of the
6annualized amount of the increases in the appropriations under s. 20.285 (1) for
7subsequent fiscal bienniums. No later than October 1 of each year, the board shall
8report to the joint committee on finance and the secretary of administration and
9administrator of the division of personnel management in the department of
10administration concerning the amounts of any salary increases granted to recognize
11competitive factors, and the institutions at which they are granted, for the 12-month
12period ending on the preceding June 30.
AB977,47 13Section 47 . 40.02 (25) (b) 8. of the statutes is amended to read:
AB977,20,1614 40.02 (25) (b) 8. Any other state employee for whom coverage is authorized
15under a collective bargaining agreement pursuant to subch. I, V, or VI of ch. 111 or
16under s. 230.12 or 233.10.
AB977,48 17Section 48 . 40.05 (1) (b) of the statutes is repealed and recreated to read:
AB977,21,2018 40.05 (1) (b) In lieu of employee payment, the employer may pay all or part of
19the contributions required by par. (a), but all the payments shall be available for
20benefit purposes to the same extent as required contributions deducted from
21earnings of the participating employees. Action to assume employee contributions
22as provided under this paragraph shall be taken at the time and in the form
23determined by the governing body of the participating employer. The state shall pay
24under this paragraph for employees who are covered by a collective bargaining
25agreement under subch. V or VI of ch. 111 and for employees whose fringe benefits

1are determined under s. 230.12 an amount equal to 4 percent of the earnings paid
2by the state unless otherwise provided in a collective bargaining agreement under
3subch. V or VI of ch. 111 or unless otherwise determined under s. 230.12. The
4University of Wisconsin Hospitals and Clinics Authority shall pay under this
5paragraph for employees who are covered by a collective bargaining agreement
6under subch. I of ch. 111 and for employees whose fringe benefits are determined
7under s. 233.10 an amount equal to 4 percent of the earnings paid by the authority
8unless otherwise provided in a collective bargaining agreement under subch. I of ch.
9111 or unless otherwise determined under s. 233.10. The state shall pay under this
10paragraph for employees who are not covered by a collective bargaining agreement
11under subch. V or VI of ch. 111 and for employees whose fringe benefits are not
12determined under s. 230.12 an amount equal to 4 percent of the earnings paid by the
13state unless a different amount is recommended by the administrator of the division
14of personnel management in the department of administration and approved by the
15joint committee on employment relations in the manner provided for approval of
16changes in the compensation plan under s. 230.12 (3). The University of Wisconsin
17Hospitals and Clinics Authority shall pay under this paragraph for its employees
18who are not covered by a collective bargaining agreement under subch. I of ch. 111
19an amount equal to 4 percent of the earnings paid by the authority unless a different
20amount is established by the board of directors of the authority under s. 233.10.
AB977,49 21Section 49 . 40.05 (4) (ag) (intro.) of the statutes is amended to read:
AB977,21,2422 40.05 (4) (ag) (intro.) Except as otherwise provided in a collective bargaining
23agreement under s. 230.12 or 233.10 or subch. I, V, or VI of ch. 111, the employer shall
24pay for its currently employed insured employees:
AB977,50 25Section 50 . 40.05 (4) (b) of the statutes is amended to read:
AB977,23,8
140.05 (4) (b) Except as provided under pars. (bc) and (bp), accumulated unused
2sick leave under ss. 13.121 (4), 36.30, 230.35 (2), 233.10, 238.04 (8), and 757.02 (5)
3and subch. I, V, or VI of ch. 111 of any eligible employee shall, at the time of death,
4upon qualifying for an immediate annuity or for a lump sum payment under s. 40.25
5(1) or upon termination of creditable service and qualifying as an eligible employee
6under s. 40.02 (25) (b) 6. or 10., be converted, at the employee's highest basic pay rate
7he or she received while employed by the state, to credits for payment of health
8insurance premiums on behalf of the employee or the employee's surviving insured
9dependents. Any supplemental compensation that is paid to a state employee who
10is classified under the state classified civil service as a teacher, teacher supervisor,
11or education director for the employee's completion of educational courses that have
12been approved by the employee's employer is considered as part of the employee's
13basic pay for purposes of this paragraph. The full premium for any eligible employee
14who is insured at the time of retirement, or for the surviving insured dependents of
15an eligible employee who is deceased, shall be deducted from the credits until the
16credits are exhausted and paid from the account under s. 40.04 (10), and then
17deducted from annuity payments, if the annuity is sufficient. The department shall
18provide for the direct payment of premiums by the insured to the insurer if the
19premium to be withheld exceeds the annuity payment. Upon conversion of an
20employee's unused sick leave to credits under this paragraph or par. (bf), the
21employee or, if the employee is deceased, the employee's surviving insured
22dependents may initiate deductions from those credits or may elect to delay
23initiation of deductions from those credits, but only if the employee or surviving
24insured dependents are covered by a comparable health insurance plan or policy
25during the period beginning on the date of the conversion and ending on the date on

1which the employee or surviving insured dependents later elect to initiate
2deductions from those credits. If an employee or an employee's surviving insured
3dependents elect to delay initiation of deductions from those credits, an employee or
4the employee's surviving insured dependents may only later elect to initiate
5deductions from those credits during the annual enrollment period under par. (be).
6A health insurance plan or policy is considered comparable if it provides hospital and
7medical benefits that are substantially equivalent to the standard health insurance
8plan established under s. 40.52 (1).
AB977,51 9Section 51 . 40.05 (4) (bw) of the statutes is amended to read:
AB977,23,2010 40.05 (4) (bw) On converting accumulated unused sick leave to credits for the
11payment of health insurance premiums under par. (b), the department shall add
12additional credits, calculated in the same manner as are credits under par. (b), that
13are based on a state employee's accumulated sabbatical leave or earned vacation
14leave from the state employee's last year of service prior to retirement, or both. The
15department shall apply the credits awarded under this paragraph for the payment
16of health insurance premiums only after the credits awarded under par. (b) are
17exhausted. This paragraph applies only to state employees who are eligible for
18accumulated unused sick leave conversion under par. (b) and who are entitled to the
19benefits under this paragraph pursuant to a collective bargaining agreement under
20subch. V or VI of ch. 111.
AB977,52 21Section 52 . 40.05 (4g) (a) 4. of the statutes is amended to read:
AB977,24,222 40.05 (4g) (a) 4. Has received a military leave of absence under s. 230.32 (3) (a)
23or 230.35 (3), under a collective bargaining agreement under subch. V or VI of ch. 111
24or under rules promulgated by the administrator of the division of personnel
25management in the department of administration or is eligible for reemployment

1with the state under s. 321.64 after completion of his or her service in the U.S. armed
2forces.
AB977,53 3Section 53 . 40.05 (5) (intro.) of the statutes is amended to read:
AB977,24,84 40.05 (5) Income continuation insurance premiums. (intro.) For the income
5continuation insurance provided under subch. V the employee shall pay the amount
6remaining after the employer has contributed the following or, if different, the
7amount determined under a collective bargaining agreement under subch. I, V, or VI
8of ch. 111 or s. 230.12 or 233.10:
AB977,54 9Section 54 . 40.05 (5) (b) 4. of the statutes is amended to read:
AB977,24,1210 40.05 (5) (b) 4. The accrual and crediting of sick leave shall be determined in
11accordance with ss. 13.121 (4), 36.30, 230.35 (2), 233.10, 238.04 (8), and 757.02 (5)
12and subch. I, V, or VI of ch. 111.
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