(1)    Definitions. In this section:

      (a)    “County” means Milwaukee County.

      (b)    “Department” means the department of health services.

      (c)    “Income maintenance program” has the meaning given in s. 49.78 (1) (b).

      (d)    “Secretary” means the secretary of health services.

      (e)    “Unit” means the Milwaukee County enrollment services unit.

   (2)   Establishment of unit.

      (a)    The department shall establish a Milwaukee County enrollment services unit under s. 15.02 (3) (c) 3. to determine eligibility under and administer the following public assistance programs in the county:

         1.    Income maintenance programs.

         2.    The programs under ss. 49.77 and 49.775.

         3.    To the extent contracted under par. (b), the child care subsidy program under s. 49.155.

      (b)    The department of children and families may enter into a contract with the department of health services that provides for the performance of eligibility and authorization functions under the program under s. 49.155 in the county by the unit.

      (c)    The department may enter into a contract with the county that provides for the performance by the county of any of the administrative functions under this subsection.

      (d)    The department shall reimburse the county for all approved, allowable costs that are incurred by the county under a contract with the department for the operation of the public assistance programs under par. (a) in the county.

   (3)   Division of employment-related functions.

      (b)   

         1.    The department shall have the authority to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, discipline, and adjust grievances with respect to, and state supervisory employees may supervise, county employees performing services under this section for the unit.

         2.    For the purposes under subd. 1., the department shall use the same process and procedures under ch. 230 that are used for the classified service of the state civil service system, including specifically the use of probationary periods under s. 230.28.

         3.    County employees performing services under this section for the unit shall be subject to the residency requirements that apply to other county employees under the county’s civil service rules.

      (c)    The county shall perform all administrative tasks related to payroll and benefits for the county employees performing services under this section for the unit.

   (4)   Treatment of former county employees appointed to state employee positions in the unit before July 1, 2011. All of the following shall apply to an employee who is appointed to a state employee position in the unit after May 29, 2009, and before July 1, 2011, and who, immediately prior to his or her appointment, was a county employee:

      (a)    The employee shall serve any applicable probationary period under s. 230.28, but shall have his or her seniority with the state computed by treating the employee’s total service with the county as state service.

      (b)    Annual leave for the employee shall accrue at the rate provided in s. 230.35 using the employee’s state service computed under par. (a).

      (c)   

         1.    The employee may remain a participating employee in the retirement system established under chapter 201, laws of 1937. To remain under the retirement system established under chapter 201, laws of 1937, the employee must exercise this option in writing, on a form provided by the department, at the time the employee is appointed to a state employee position. The employee shall exercise this option, in writing, no later than 10 days after the employee is appointed to a state employee position. An employee’s decision to remain a participating employee in the retirement system established under chapter 201, laws of 1937, is irrevocable during the period that the employee is holding a state employee position in the unit.

         2.    The secretary shall pay, on behalf of the employee, all required employer contributions under the retirement system established under chapter 201, laws of 1937.

      (d)    The employee shall have his or her sick leave accrued with the state computed by treating the employee’s unused balance of sick leave accrued with the county as sick leave accrued in state service, but not to exceed the amount of sick leave the employee would have accrued in state service for the same period, if the employee is able to provide adequate documentation in accounting for sick leave used during the accrual period with the county. Sick leave that transfers under this paragraph is not subject to a right of conversion, under s. 40.05 (4) or otherwise, upon death or termination of creditable service for payment of health insurance benefits on behalf of the employee or the employee’s dependents.

      (e)    Notwithstanding par. (c), beginning on July 1, 2011, an employee who has opted under par. (c) to remain a participating employee in the retirement system established under chapter 201, laws of 1937, shall remain a participating employee in the retirement system until the employee has vested in all retirement contributions paid by, or on behalf of, the employee. When the employee becomes vested in all of the contributions paid by, or on behalf of, the employee in the retirement system established under chapter 201, laws of 1937, the employee may no longer be a participating employee in that retirement system and shall immediately become a participating employee in the Wisconsin retirement system.

   (5)   Treatment of former county employees appointed to state employee positions in the unit on or after July 1, 2011. All of the following shall apply to an employee who is appointed to a state employee position in the unit on or after July 1, 2011, and who, immediately prior to his or her appointment, was a county employee performing services for the unit:

      (a)    The employee shall serve any applicable probationary period under s. 230.28, but shall have his or her seniority with the state computed by treating the employee’s total service with the county as state service.

      (b)    Annual leave for the employee shall accrue at the rate provided in s. 230.35 using the employee’s state service computed under par. (a).

      (c)   

         1.    The employee shall remain a participating employee in the retirement system established under chapter 201, laws of 1937, until the employee becomes vested in all of the contributions paid by, or on behalf of, the employee in the retirement system. When the employee becomes vested in all of the contributions paid by, or on behalf of, the employee in the retirement system established under chapter 201, laws of 1937, the employee may no longer be a participating employee in that retirement system and shall immediately become a participating employee in the Wisconsin retirement system.

         2.    The secretary shall pay, on behalf of the employee, all required employer contributions under the retirement system established under chapter 201, laws of 1937.

      (d)    The employee shall have his or her sick leave accrued with the state computed by treating the employee’s unused balance of sick leave accrued with the county as sick leave accrued in state service, but not to exceed the amount of sick leave the employee would have accrued in state service for the same period, if the employee is able to provide adequate documentation in accounting for sick leave used during the accrual period with the county. Sick leave that transfers under this paragraph is not subject to a right of conversion, under s. 40.05 (4) or otherwise, upon death or termination of creditable service for payment of health insurance benefits on behalf of the employee or the employee’s dependents.

      (e)    The employee shall not be subject to s. 40.23 (2m) (er) and (3) (b).