SB174,4,145 20.435 (4) (L) Fraud and error reduction. All moneys received as the state's
6share of the recovery of overpayments and incorrect payments under ss. 49.497 (1)
7and (1m), 49.793 (2) (a), and 49.847, all moneys received from counties and tribal
8governing bodies as a result of any error reduction activities under ss. 49.197 and
949.845, and all moneys credited to this appropriation account under ss. 49.497 (2) (b),
1049.793 (2) (b), and 49.847 (3) (b), for any contracts under s. 49.197 (5), for any
11activities to reduce error and fraud under s. 49.845, to pay federal sanctions under
12the food stamp program, for reward payments under 49.846 (2), and for food stamp
13reinvestment activities under reinvestment agreements with the federal
14department of agriculture that are designed to improve the food stamp program.
SB174,3 15Section 3 . 20.435 (4) (nn) of the statutes is amended to read:
SB174,4,2116 20.435 (4) (nn) Federal aid; income maintenance. All moneys received from the
17federal government for the costs of contracting for the administration of the Medical
18Assistance program under subch. IV of ch. 49 and the Badger Care health care
19program under s. 49.665 and the food stamp program, other than moneys received
20under par. (pa), for costs to administer income maintenance programs, as defined in
21s. 49.78 (1) (b), and for reward payments under 49.846 (2).
SB174,4 22Section 4 . 20.435 (4) (pa) of the statutes is amended to read:
SB174,5,423 20.435 (4) (pa) Federal aid; Medical Assistance and food stamp contracts
24administration.
All federal moneys received for the federal share of the cost of
25contracting for payment and services administration and reporting, other than

1moneys received under par. (nn), to reimburse 3rd parties for their costs under s.
249.475, for administrative contract costs for the food stamp program under s. 49.79,
3for reward payments under s. 49.846 (2), and for services of resource centers under
4s. 46.283.
SB174,5 5Section 5. 20.437 (2) (dz) of the statutes is amended to read:
SB174,6,26 20.437 (2) (dz) Temporary Assistance for Needy Families programs;
7maintenance of effort.
The amounts in the schedule for administration and benefit
8payments under Wisconsin Works under ss. 49.141 to 49.161, the learnfare program
9under s. 49.26, and the work experience program for noncustodial parents under s.
1049.36; for payments to local governments, organizations, tribal governing bodies,
11and Wisconsin Works agencies; for kinship care and long-term kinship care
12assistance as specified under s. 49.175 (1) (s); for aid payments and local
13administration with respect to any services or program specified under s. 49.175 (1);
14for reward payments under s. 49.846 (3); and for emergency assistance for families
15with needy children under s. 49.138. Payments may be made from this appropriation
16account for any contracts under s. 49.845 (4) and for any fraud investigation and
17error reduction activities under s. 49.197 (1m). Moneys appropriated under this
18paragraph may be used to match federal funds received under par. (md).
19Notwithstanding ss. 20.001 (3) (a) and 20.002 (1), the department may transfer funds
20between fiscal years under this paragraph. Notwithstanding ss. 20.001 (3) and
2120.002 (1), the department of health services shall credit to this appropriation
22account funds for the purposes of this appropriation that the department transfers
23from the appropriation account under s. 20.435 (5) (bc). All funds allocated by the
24department but not encumbered by December 31 of each year lapse to the general

1fund on the next January 1 unless transferred to the next calendar year by the joint
2committee on finance.
SB174,6 3Section 6 . 20.437 (2) (L) of the statutes is amended to read:
SB174,6,124 20.437 (2) (L) Public assistance overpayment recovery, fraud investigation, and
5error reduction.
All moneys received as the state's share of the recovery of
6overpayments and incorrect payments under s. 49.191 (3) (c), 1997 stats., and s.
749.195, 1997 stats., for any contracts under s. 49.845 (4), for any activities under s.
849.197 (1m) to investigate fraud relating to the Aid to Families with Dependent
9Children program and the Wisconsin Works program, for any activities under s.
1049.197 (3) to reduce payment errors in the Wisconsin Works program, for reward
11payments under s. 49.846 (3),
and for costs associated with collection of public
12assistance overpayments.
SB174,7 13Section 7 . 49.79 (11) of the statutes is created to read:
SB174,6,2514 49.79 (11) Treatment of inactive accounts; expungement of unused benefits.
15(a) If, for a period of 6 months or longer, an individual or household that is receiving
16benefits under this section through an electronic benefit transfer system uses no
17benefits that have been posted to the individual's or household's benefit account, the
18department shall remove all benefits from the account electronically and store them
19offline. The benefits being stored offline shall be made available to the individual or
20household again within 48 hours after a request by the individual or a member of the
21household to restore the benefits or upon reapplication by the individual or
22household for benefits under this section, whichever is applicable. The department
23shall attempt to notify the individual or household before benefits are removed from
24the account under this paragraph and shall describe the steps that the individual or
25household must take to get the benefits returned to the account.
SB174,7,2
1(b) The department shall expunge any benefits that have not been used after
2a period of one year, regardless of whether either of the following applies:
SB174,7,43 1. The benefits have been removed from an inactive benefit account under par.
4(a) and are being stored offline.
SB174,7,55 2. The benefits are still posted to an active account.
SB174,8 6Section 8 . 49.793 (2) (a) of the statutes is amended to read:
SB174,7,157 49.793 (2) (a) Except as provided in par. (b), a county, multicounty consortium,
8as defined in s. 49.78 (1) (br), or governing body of a federally recognized American
9Indian tribe may retain a portion of the full amount of an overpayment the state is
10authorized to retain under 7 USC 2025 that is recovered under sub. (1) due to the
11efforts of an employee or officer of the county, multicounty consortium, or tribe. The
12department shall promulgate a rule establishing the portion of the amount of the
13overpayment that the county, multicounty consortium, or governing body may
14retain.
This paragraph does not apply to recovery of an overpayment that was made
15as a result of state, county, multicounty consortium, or tribal governing body error.
SB174,9 16Section 9. 49.846 of the statutes is created to read:
SB174,7,19 1749.846 Optional incentive program for counties and tribes that
18identify fraud in certain public assistance programs.
(1) Definitions. In this
19section:
SB174,7,2120 (a) “County or tribe" means a county having a population of less than 750,000
21or a federally recognized American Indian tribe or band in this state.
SB174,7,2222 (b) “Food stamp program" has the meaning given in s. 49.79 (1) (c).
SB174,7,2323 (c) “Medical Assistance program" means the program under subch. IV.
SB174,7,2424 (d) “Wisconsin Works" has the meaning given in s. 49.141 (1) (p).
SB174,8,8
1(2) Department of health services; public assistance programs. (a) Medical
2Assistance program.
The department of health services shall establish an optional
3incentive program, by rule, under which the department will provide a reward
4payment to a county or tribe if an employee or officer of the county or tribe identifies
5fraudulent activity in the Medical Assistance program. The department of health
6services may make reward payments under the optional incentive program from the
7appropriations under s. 20.435 (4) (bm), (L), (nn), and (pa). The department of health
8services shall establish the optional incentive program to include all of the following:
SB174,8,119 1. That a county or tribe shall choose to receive a reward payment in the
10amount determined under subd. 2. or to retain funds under s. 49.49 (5) or 49.497 (2)
11(a).
SB174,8,1912 2. That the amount of a reward payment to a county or tribe under the program
13is equal to 20 percent of the amount that the department determines will be saved
14in the Medical Assistance program as the result of eliminating the identified
15fraudulent activity during the 12-month period after the fraudulent activity is
16eliminated. Notwithstanding ss. 49.49 (5) and 49.497 (2) (a), a county or tribe that
17receives a reward payment under this subdivision may not retain any funds that are
18incorrectly paid as the result of the identified fraudulent activity and recovered due
19to the efforts of an employee or officer of the county or tribe.
SB174,9,220 (b) Food stamp program. The department of health services shall establish an
21optional incentive program, by rule, under which the department will provide a
22reward payment to a county or tribe if an employee or officer of the county or tribe
23identifies fraudulent activity in the food stamp program. The department of health
24services may make reward payments under the optional incentive program from the

1appropriations under s. 20.435 (4) (bm), (L), (nn), and (pa). The department shall
2establish the optional incentive program to include all of the following:
SB174,9,43 1. That a county or tribe shall choose to receive a reward payment in the
4amount determined under subd. 2. or to retain funds under s. 49.793 (2) (a).
SB174,9,125 2. That the amount of a reward payment to a county or tribe under the program
6is equal to 20 percent of the amount that the department determines will be saved
7in the food stamp program as the result of eliminating the identified fraudulent
8activity during the 12-month period after the fraudulent activity is eliminated.
9Notwithstanding s. 49.793 (2) (a), a county or tribe that receives a reward payment
10under this subdivision may not retain any funds that are incorrectly paid as the
11result of the identified fraudulent activity and recovered due to the efforts of an
12employee or officer of the county or tribe.
SB174,9,19 13(3) Wisconsin Works. The department of children and families shall establish
14an optional incentive program, by rule, under which the department will provide a
15reward payment to a county or tribe if an employee or officer of the county or tribe
16identifies fraudulent activity in Wisconsin Works. The department of children and
17families may make reward payments under the optional incentive program from the
18appropriation under s. 20.437 (2) (dz), (L), and (mc). The department of children and
19families shall establish the optional incentive program to include all of the following:
SB174,9,2220 (a) That a county or tribe shall choose to receive a reward payment in the
21amount determined under par. (b), to receive a reward under the incentive program
22under s. 49.197 (2), or to retain funds under s. 49.195 (4).
SB174,9,2523 (b) 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 Wisconsin Works as the result of eliminating the identified fraudulent activity

1during the 12-month period after the fraudulent activity is eliminated.
2Notwithstanding ss. 49.195 (4) and 49.197 (2), a county or tribe that receives a
3reward payment under this paragraph may not retain any funds that are incorrectly
4paid as the result of the identified fraudulent activity and recovered due to the efforts
5of an employee or officer of the county or tribe and may not receive a reward payment
6under s. 49.197 (2).
SB174,10,8 7(4) Use of reward payment. A county or tribe may use a reward payment
8received under this section for any purpose.
SB174,10,16 9(5) Waivers. (a) If the department of health services determines that it needs
10a waiver to allow reward payments under sub. (2) (a) to qualify as administrative
11costs for the Medical Assistance program or to allow a county and tribe to use any
12federal funds received under sub. (2) (a) for any purpose, the department shall
13request the waiver from the federal department of health and human services. If the
14federal department of health and human services disapproves the waiver request
15made under this paragraph, the department of health services may not implement
16the incentive program under sub. (2) (a).
SB174,10,2417 (b) If the department of health services determines that it needs a waiver to
18allow reward payments under sub. (2) (b) to qualify as administrative costs involved
19in the operation of the food stamp program or to allow a county and tribe to use any
20federal funds received under sub. (2) (b) for any purpose, the department shall
21request the waiver from the U.S. department of agriculture. If the U.S. department
22of agriculture disapproves the waiver request made under this paragraph, the
23department of health services may not implement the incentive program under sub.
24(2) (b).
SB174,11,9
1(c) If the department of children and families determines that it needs a waiver
2to allow reward payments under sub. (3) to qualify as state expenditures for purposes
3of determining whether the state is maintaining a certain level of historic support
4under the temporary assistance for needy families program under 42 USC 601 to 619
5or to allow a county and tribe to use any federal funds received under sub. (3) for any
6purpose, the department shall request the waiver from the federal department of
7health and human services. If the federal department of health and human services
8disapproves the waiver request made under this paragraph, the department of
9children and families may not implement the incentive program under sub. (3).
SB174,10 10Section 10 . Nonstatutory provisions.
SB174,11,1111 (1) Waiver to limit number of FoodShare replacement cards.
SB174,11,1212 (a) In this subsection:
SB174,11,13 131. “Department" means the department of health services.
SB174,11,16 142. “FoodShare recipient" means an individual or household that is receiving
15benefits under the federal food stamp program, as defined in section 49.79 (1) (c) of
16the statutes.
SB174,12,217 (b) No later than 6 months after the effective date of this paragraph, the
18department shall request a waiver from the U.S. department of agriculture to allow
19the department to limit the number of replacement benefit cards that it must issue
20in a 12-month period to a FoodShare recipient who reports that his or her electronic
21benefit card has been lost, stolen, damaged, or destroyed to 4 replacement cards. If
22the U.S. department of agriculture does not disapprove the waiver request, the
23department may limit the number of replacement benefit cards that it issues in a

112-month period to a FoodShare recipient to the number that is authorized under
2the waiver.
SB174,12,33 (End)
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