LRB-5544/1
TJD/EAW/SWB:emw
January 2018 Special Session
2017 - 2018 LEGISLATURE
February 16, 2018 - Printed by direction of Senate Chief Clerk.
AB6-engrossed,1,7 1An Act to renumber 49.143 (3g) (a) 1., 2., 4., 5. and 6.; to renumber and amend
249.143 (3) and 49.143 (3g) (a) 3.; to consolidate, renumber and amend
349.143 (3g) (a) (intro.) and (b); to amend section 1m . 49.143 (3) (title); and to
4create
20.435 (4) (bt), 49.143 (3) (b), 49.79 (7r) and 49.79 (9) (f) of the statutes;
5relating to: payments based on performance for Wisconsin Works and
6FoodShare employment and training program contractors and making an
7appropriation.
Analysis by the Legislative Reference Bureau
Engrossment information:
The text of Engrossed January 2018 Special Session Assembly Bill 6 consists
of the following documents adopted in the assembly on February 15, 2018: the bill
as affected by Assembly Amendment 1. The text also includes the February 16, 2018,
chief clerk's correction to January 2018 Special Session Assembly Bill 6.
Content of Engrossed January 2018 Special Session Assembly Bill 6:
This bill requires the Department of Health Services to create and implement
a payment system based on performance for entities that perform administrative
functions for the FoodShare employment and training program, known as FSET.
The bill specifies criteria for the performance outcomes on which the payment system
must be based.

Under current law, the Department of Children and Families is required to
consider certain criteria for performance bonuses for Wisconsin Works agencies.
This bill requires DCF to instead use those criteria for performance-based payments
to Wisconsin Works agencies. The bill does not change the current prohibition for
basing any performance bonus payments on caseload decreases, or reduced spending
by the Wisconsin Works agency, that are not directly attributable to placement of
participants in unsubsidized employment.
This bill requires DHS to establish and implement a pilot program to provide
discounts to certain households that are eligible for FoodShare benefits with
discounts on fresh produce and other healthy foods. Under the bill, DHS must seek
proposals from entities to administer the healthy eating incentive pilot program
through DHS's request-for-proposal procedures and according to criteria developed
by DHS. DHS must then choose an applicant with which to contract and the chosen
applicant must administer the program, including managing all financial
transactions between and among participants, retailers, food manufacturers, and
DHS and also establishing an adequate network of participating retailers to
effectively conduct the program. In addition, under the bill, DHS is required to
contract with an independent research entity to conduct a study of the program.
DHS must identify a certain number of participants in the program to provide food
purchase, nutritional, and health data to the research entity. The research entity
must then analyze the efficacy of the pilot program in affecting food purchases and
the health of participating families.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB6-engrossed,1g 1Section 1g. 20.005 (3) (schedule) of the statutes: at the appropriate place,
2insert the following amounts for the purposes indicated: - See PDF for table PDF
AB6-engrossed,1k 3Section 1k. 20.435 (4) (bt) of the statutes is created to read:
AB6-engrossed,3,34 20.435 (4) (bt) Healthy eating incentive pilot program. As a continuing
5appropriation, the amounts in the schedule to contract with an entity to administer

1the healthy eating incentive program under s. 49.79 (7r). No moneys may be
2expended under this paragraph after December 31, 2019, except for moneys
3encumbered on or before that date.
AB6-engrossed,3,4 4Section 1m . 49.143 (3) (title) of the statutes is amended to read:
AB6-engrossed,3,65 49.143 (3) (title) Performance standards, performance-based payments, and
6bonuses
.
AB6-engrossed,2 7Section 2. 49.143 (3) of the statutes is renumbered 49.143 (3) (a) (intro.) and
8amended to read:
AB6-engrossed,3,149 49.143 (3) (a) (intro.) The department shall establish performance standards
10for the administration of Wisconsin works Works. If a Wisconsin works Works
11agency does not meet the standards established under this subsection, the
12department may withhold or recover any or all payment from the Wisconsin works
13Works agency. Performance standards under this paragraph shall be based on all of
14the following criteria:
AB6-engrossed,3 15Section 3. 49.143 (3) (b) of the statutes is created to read:
AB6-engrossed,3,1816 49.143 (3) (b) The department shall create and implement a
17performance-based payment system for all contracts under this section based on the
18performance standards established under par. (a).
AB6-engrossed,4 19Section 4. 49.143 (3g) (a) (intro.) and (b) of the statutes are consolidated,
20renumbered 49.143 (3) (c) and amended to read:
AB6-engrossed,4,221 49.143 (3) (c) The department shall base any performance bonus calculation
22that it makes for Wisconsin works Works agencies on all of the following performance
23criteria: (b) established under par. (a). The department may not base any
24performance bonus payments on caseload decreases, or reduced spending by the

1Wisconsin works Works agency, that are not directly attributable to placement of
2participants in unsubsidized employment.
AB6-engrossed,5 3Section 5. 49.143 (3g) (a) 1., 2., 4., 5. and 6. of the statutes are renumbered
449.143 (3) (a) 1., 2., 4., 5. and 6.
AB6-engrossed,6 5Section 6. 49.143 (3g) (a) 3. of the statutes is renumbered 49.143 (3) (a) 3. and
6amended to read:
AB6-engrossed,4,97 49.143 (3) (a) 3. The job retention rate, as defined by the department, at
8periodic intervals after placement
of former participants in Wisconsin works Works
9employment positions.
AB6-engrossed,6p 10Section 6p. 49.79 (7r) of the statutes is created to read:
AB6-engrossed,4,1511 49.79 (7r) Healthy eating incentive pilot program. (a) The department shall
12establish and implement a 10-month pilot program to provide 2,000 households that
13are eligible for food stamp program benefits in both urban and rural areas with
14discounts on fresh produce and other healthy foods at the point-of-sale at
15participating retailers.
AB6-engrossed,4,2216 (b) The department shall obtain and review proposals to administer the
17program under par. (a) in accordance with the department's request-for-proposal
18procedures and according to criteria developed by the department. After reviewing
19the applications submitted, the department shall select an applicant and enter into
20a contract with that applicant to administer the program under this subsection. In
21administering the program, the selected applicant shall do at least all of the
22following:
AB6-engrossed,4,2423 1. Manage all financial transactions between and among participants,
24retailers, food manufacturers, and the department.
AB6-engrossed,5,2
12. Establish an adequate network of participating retailers to effectively
2conduct the pilot.
AB6-engrossed,5,83 (c) The department shall contract with an independent research entity to
4conduct a study of the program established under this subsection. The department
5shall identify a statistically significant number of participants in the pilot program
6to provide food purchase, nutritional, and health data to the independent research
7entity. The research entity shall analyze the efficacy of the pilot program in affecting
8food purchases and the health of participating families.
AB6-engrossed,7 9Section 7. 49.79 (9) (f) of the statutes is created to read:
AB6-engrossed,5,1410 49.79 (9) (f) 1. Subject to subd. 3., the department shall create and implement
11a payment system based on performance for entities described in par. (a) that
12perform administrative functions for the employment and training program under
13this subsection. The department shall establish performance outcomes for the
14payment system under this paragraph based on all of the following criteria:
AB6-engrossed,5,1615 a. The placement of participants of the employment and training program
16under this subsection into unsubsidized employment.
AB6-engrossed,5,1717 b. Whether the placement under subd. 1. a. is full time or part time.
AB6-engrossed,5,2018 c. The job retention rate, as defined by the department, at periodic intervals
19after placement of former participants in the employment and training program
20under this subsection.
AB6-engrossed,5,2221 d. Wages and benefits earned by former participants in the employment and
22training program under this subsection.
AB6-engrossed,5,2423 e. Appropriate implementation of the employment and training program under
24this subsection.
AB6-engrossed,5,2525 f. Customer satisfaction.
AB6-engrossed,6,3
12. The department shall ensure that the payment system under this paragraph
2does not effect the moneys available for supportive services for participants in the
3program under this subsection.
AB6-engrossed,6,64 3. If approval by the U.S. department of agriculture is required to implement
5the payment system and the U.S. department of agriculture does not approve, the
6department may not implement the payment system under this paragraph.
AB6-engrossed,8 7Section 8 . Initial applicability.
AB6-engrossed,6,138 (1) Pay for performance; Wisconsin Works and FoodShare employment and
9training programs.
The treatment of sections 49.143 (3) (title) and (3g) (a) (intro.),
101., 2., 3., 4., 5., and 6. and (b) and 49.79 (9) (f) of the statutes, the renumbering and
11amendment of section 49.143 (3), and the creation of section 49.143 (3) (b) of the
12statutes first apply to contracts that are entered into or renewed on the effective date
13of this subsection.
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