Wisconsin Legislature: Amendment ASA1-AB219

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PG&EVM:wlj:jf

2011 - 2012 LEGISLATURE

ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO 2011 ASSEMBLY BILL 219

January 18, 2012 - Offered by Representative Thiesfeldt.

AB219-ASA1,1,3 1An Act to amend 119.04 (1); and to create 38.12 (12), 66.0138 and 120.12 (28)
2of the statutes; relating to: funding postretirement health care benefits of local
3government employees.

Analysis by the Legislative Reference Bureau

Currently, cities, villages, towns, counties, school districts, and technical
college districts (local governments) provide health care benefits for their employees.
Some also provide postretirement health care benefits for their employees.

This substitute amendment prohibits a local government from providing health
care benefits to any employee hired on or after January 1, 2013, for use upon the
employee's retirement, including compensated absences but excluding the implicit
rate subsidy, unless the cost of the benefit is fully funded in a segregated account on
an actuarial basis or other method that complies with generally accepted accounting
principles.

The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:

AB219-ASA1, s. 1 4Section 1. 38.12 (12) of the statutes is created to read:

AB219-ASA1,2,6

138.12 (12) Health care benefits for retirees. If the district board provides
2any health care benefits for use upon retirement, including compensated absences
3but excluding the implicit rate subsidy, to an employee hired on or after January 1,
42013, the district board shall ensure that the cost of the benefits is fully funded in
5a segregated account on an actuarial basis or other method that complies with
6generally accepted accounting principles.

AB219-ASA1, s. 2 7Section 2. 66.0138 of the statutes is created to read:

AB219-ASA1,2,9 866.0138 Health care benefits for retirees. (1) In this section, "political
9subdivision" means a city, village, town, or county.

AB219-ASA1,2,15 10(2) If a political subdivision provides any health care benefits for use upon
11retirement, including compensated absences but excluding the implicit rate subsidy,
12to an employee hired on or after January 1, 2013, the political subdivision shall
13ensure that the cost of the benefits is fully funded in a segregated account on an
14actuarial basis or other method that complies with generally accepted accounting
15principles.

AB219-ASA1, s. 3 16Section 3. 119.04 (1) of the statutes, as affected by 2011 Wisconsin Act 85, is
17amended to read:

AB219-ASA1,3,218 119.04 (1) Subchapters IV, V and VII of ch. 115, ch. 121 and ss. 66.0235 (3) (c),
1966.0603 (1m) to (3), 115.01 (1) and (2), 115.28, 115.31, 115.33, 115.34, 115.343,
20115.345, 115.365 (3), 115.38 (2), 115.445, 118.001 to 118.04, 118.045, 118.06, 118.07,
21118.075, 118.076, 118.10, 118.12, 118.125 to 118.14, 118.145 (4), 118.15, 118.153,
22118.16, 118.162, 118.163, 118.164, 118.18, 118.19, 118.20, 118.223, 118.225, 118.24
23(1), (2) (c) to (f), (6), (8), and (10), 118.245, 118.255, 118.258, 118.291, 118.292, 118.30
24to 118.43, 118.46, 118.51, 118.52, 118.55, 120.12 (4m), (5), and (15) to (27) (28),
25120.125, 120.13 (1), (2) (b) to (g), (3), (14), (17) to (19), (26), (34), (35), (37), (37m), and

1(38), 120.14, 120.21 (3), and 120.25 are applicable to a 1st class city school district
2and board.

AB219-ASA1, s. 4 3Section 4. 120.12 (28) of the statutes is created to read:

AB219-ASA1,3,94 120.12 (28) Health care benefits for retirees. If the school board provides
5any health care benefits for use upon retirement, including compensated absences
6but excluding the implicit rate subsidy, to an employee hired on or after January 1,
72013, ensure that the cost of the benefits is fully funded in a segregated account on
8an actuarial basis or other method that complies with generally accepted accounting
9principles.

AB219-ASA1,3,1010 (End)