AB263-ASA1,3 21Section 3 . 20.435 (4) (nn) of the statutes is amended to read:
AB263-ASA1,4,222 20.435 (4) (nn) Federal aid; income maintenance. All moneys received from the
23federal government for the costs of contracting for the administration of the Medical
24Assistance program under subch. IV of ch. 49 and the Badger Care health care
25program under s. 49.665 and the food stamp program, other than moneys received

1under par. (pa), for costs to administer income maintenance programs, as defined in
2s. 49.78 (1) (b), and for reward payments under 49.8475 (2).
AB263-ASA1,4 3Section 4 . 20.435 (4) (pa) of the statutes is amended to read:
AB263-ASA1,4,104 20.435 (4) (pa) Federal aid; Medical Assistance and food stamp contracts
5administration.
All federal moneys received for the federal share of the cost of
6contracting for payment and services administration and reporting, other than
7moneys received under pars. (nn) and (np), to reimburse 3rd parties for their costs
8under s. 49.475, for administrative contract costs for the food stamp program under
9s. 49.79, for reward payments under s. 49.8475 (2), and for services of resource
10centers under s. 46.283.
AB263-ASA1,5 11Section 5. 20.437 (2) (dz) of the statutes is amended to read:
AB263-ASA1,5,712 20.437 (2) (dz) Temporary Assistance for Needy Families programs;
13maintenance of effort.
The amounts in the schedule for administration and benefit
14payments under Wisconsin Works under ss. 49.141 to 49.161, the learnfare program
15under s. 49.26, and the work experience program for noncustodial parents under s.
1649.36; for payments to local governments, organizations, tribal governing bodies,
17and Wisconsin Works agencies; for kinship care and long-term kinship care
18assistance as specified under s. 49.175 (1) (s); for aid payments and local
19administration with respect to any services or program specified under s. 49.175 (1);
20for reward payments under s. 49.8475 (3); and for emergency assistance for families
21with needy children under s. 49.138. Payments may be made from this appropriation
22account for any contracts under s. 49.845 (4) and for any fraud investigation and
23error reduction activities under s. 49.197 (1m). Moneys appropriated under this
24paragraph may be used to match federal funds received under par. (md).
25Notwithstanding ss. 20.001 (3) (a) and 20.002 (1), the department may transfer funds

1between fiscal years under this paragraph. Notwithstanding ss. 20.001 (3) and
220.002 (1), the department of health services shall credit to this appropriation
3account funds for the purposes of this appropriation that the department transfers
4from the appropriation account under s. 20.435 (5) (bc). All funds allocated by the
5department but not encumbered by December 31 of each year lapse to the general
6fund on the next January 1 unless transferred to the next calendar year by the joint
7committee on finance.
AB263-ASA1,6 8Section 6 . 20.437 (2) (L) of the statutes is amended to read:
AB263-ASA1,5,179 20.437 (2) (L) Public assistance overpayment recovery, fraud investigation, and
10error reduction.
All moneys received as the state's share of the recovery of
11overpayments and incorrect payments under s. 49.191 (3) (c), 1997 stats., and s.
1249.195, 1997 stats., for any contracts under s. 49.845 (4), for any activities under s.
1349.197 (1m) to investigate fraud relating to the Aid to Families with Dependent
14Children program and the Wisconsin Works program, for any activities under s.
1549.197 (3) to reduce payment errors in the Wisconsin Works program, for reward
16payments under s. 49.8475 (3),
and for costs associated with collection of public
17assistance overpayments.
AB263-ASA1,7 18Section 7 . 49.793 (2) (a) of the statutes is amended to read:
AB263-ASA1,6,219 49.793 (2) (a) Except as provided in par. (b), a county, multicounty consortium,
20as defined in s. 49.78 (1) (br), or governing body of a federally recognized American
21Indian tribe may retain a portion of the full amount of an overpayment the state is
22authorized to retain under 7 USC 2025 that is recovered under sub. (1) due to the
23efforts of an employee or officer of the county, multicounty consortium, or tribe. The
24department shall promulgate a rule establishing the portion of the amount of the
25overpayment that the county, multicounty consortium, or governing body may

1retain.
This paragraph does not apply to recovery of an overpayment that was made
2as a result of state, county, multicounty consortium, or tribal governing body error.
AB263-ASA1,8 3Section 8. 49.8475 of the statutes is created to read:
AB263-ASA1,6,6 449.8475 Optional incentive program for counties and tribes that
5identify fraud in certain public assistance programs.
(1) Definitions. In this
6section:
AB263-ASA1,6,87 (a) “County or tribe" means a county having a population of less than 750,000
8or a federally recognized American Indian tribe or band in this state.
AB263-ASA1,6,99 (b) “Food stamp program" has the meaning given in s. 49.79 (1) (c).
AB263-ASA1,6,1010 (c) “Medical Assistance program" means the program under subch. IV.
AB263-ASA1,6,1111 (d) “Wisconsin Works" has the meaning given in s. 49.141 (1) (p).
AB263-ASA1,6,19 12(2) Department of health services; public assistance programs. (a) Medical
13Assistance program.
The department of health services shall establish an optional
14incentive program, by rule, under which the department will provide a reward
15payment to a county or tribe if an employee or officer of the county or tribe identifies
16fraudulent activity in the Medical Assistance program. The department of health
17services may make reward payments under the optional incentive program from the
18appropriations under s. 20.435 (4) (bm), (L), (nn), and (pa). The department of health
19services shall establish the optional incentive program to include all of the following:
AB263-ASA1,6,2220 1. That a county or tribe shall choose to receive a reward payment in the
21amount determined under subd. 2. or to retain funds under s. 49.49 (5) or 49.497 (2)
22(a).
AB263-ASA1,7,523 2. That the amount of a reward payment to a county or tribe under the program
24is equal to 20 percent of the amount that the department determines will be saved
25in the Medical Assistance program as the result of eliminating the identified

1fraudulent activity during the 12-month period after the fraudulent activity is
2eliminated. Notwithstanding ss. 49.49 (5) and 49.497 (2) (a), a county or tribe that
3receives a reward payment under this subdivision may not retain any funds that are
4incorrectly paid as the result of the identified fraudulent activity and recovered due
5to the efforts of an employee or officer of the county or tribe.
AB263-ASA1,7,126 (b) Food stamp program. The department of health services shall establish an
7optional incentive program, by rule, under which the department will provide a
8reward payment to a county or tribe if an employee or officer of the county or tribe
9identifies fraudulent activity in the food stamp program. The department of health
10services may make reward payments under the optional incentive program from the
11appropriations under s. 20.435 (4) (bm), (L), (nn), and (pa). The department shall
12establish the optional incentive program to include all of the following:
AB263-ASA1,7,1413 1. That a county or tribe shall choose to receive a reward payment in the
14amount determined under subd. 2. or to retain funds under s. 49.793 (2) (a).
AB263-ASA1,7,2215 2. That the amount of a reward payment to a county or tribe under the program
16is equal to 20 percent of the amount that the department determines will be saved
17in the food stamp program as the result of eliminating the identified fraudulent
18activity during the 12-month period after the fraudulent activity is eliminated.
19Notwithstanding s. 49.793 (2) (a), a county or tribe that receives a reward payment
20under this subdivision may not retain any funds that are incorrectly paid as the
21result of the identified fraudulent activity and recovered due to the efforts of an
22employee or officer of the county or tribe.
AB263-ASA1,8,4 23(3) Wisconsin Works. The department of children and families shall establish
24an optional incentive program, by rule, under which the department will provide a
25reward payment to a county or tribe if an employee or officer of the county or tribe

1identifies fraudulent activity in Wisconsin Works. The department of children and
2families may make reward payments under the optional incentive program from the
3appropriation under s. 20.437 (2) (dz), (L), and (mc). The department of children and
4families shall establish the optional incentive program to include all of the following:
AB263-ASA1,8,75 (a) That a county or tribe shall choose to receive a reward payment in the
6amount determined under par. (b), to receive a reward under the incentive program
7under s. 49.197 (2), or to retain funds under s. 49.195 (4).
AB263-ASA1,8,168 (b) That the amount of a reward payment to a county or tribe under the program
9is equal to 20 percent of the amount that the department determines will be saved
10in Wisconsin Works as the result of eliminating the identified fraudulent activity
11during the 12-month period after the fraudulent activity is eliminated.
12Notwithstanding ss. 49.195 (4) and 49.197 (2), a county or tribe that receives a
13reward payment under this paragraph may not retain any funds that are incorrectly
14paid as the result of the identified fraudulent activity and recovered due to the efforts
15of an employee or officer of the county or tribe and may not receive a reward payment
16under s. 49.197 (2).
AB263-ASA1,8,18 17(4) Use of reward payment. A county or tribe may use a reward payment
18received under this section for any purpose.
AB263-ASA1,9,2 19(5) Waivers. (a) If the department of health services determines that it needs
20a waiver to allow reward payments under sub. (2) (a) to qualify as administrative
21costs for the Medical Assistance program or to allow a county and tribe to use any
22federal funds received under sub. (2) (a) for any purpose, the department shall
23request the waiver from the federal department of health and human services. If the
24federal department of health and human services disapproves the waiver request

1made under this paragraph, the department of health services may not implement
2the incentive program under sub. (2) (a).
AB263-ASA1,9,103 (b) If the department of health services determines that it needs a waiver to
4allow reward payments under sub. (2) (b) to qualify as administrative costs involved
5in the operation of the food stamp program or to allow a county and tribe to use any
6federal funds received under sub. (2) (b) for any purpose, the department shall
7request the waiver from the U.S. department of agriculture. If the U.S. department
8of agriculture disapproves the waiver request made under this paragraph, the
9department of health services may not implement the incentive program under sub.
10(2) (b).
AB263-ASA1,9,1911 (c) If the department of children and families determines that it needs a waiver
12to allow reward payments under sub. (3) to qualify as state expenditures for purposes
13of determining whether the state is maintaining a certain level of historic support
14under the temporary assistance for needy families program under 42 USC 601 to 619
15or to allow a county and tribe to use any federal funds received under sub. (3) for any
16purpose, the department shall request the waiver from the federal department of
17health and human services. If the federal department of health and human services
18disapproves the waiver request made under this paragraph, the department of
19children and families may not implement the incentive program under sub. (3).
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