LRBs0373/1
TAY/GMM/PJK:kg/sg:jb
1995 - 1996 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 2,
To 1995 ASSEMBLY BILL 591
November 28, 1995 - Offered by Committee on Welfare Reform.
AB591-ASA2,4,2 1An Act to repeal 20.435 (4) (cn), 20.435 (4) (d), 20.435 (4) (dc), 20.435 (4) (de),
220.435 (4) (df), 20.435 (4) (dg), 46.40 (4m), 46.45 (1), 46.979 (2) (a), 49.193 (4)
3(j) 4., 49.193 (7), 49.26 (1) (j), 49.27 (5) (e) 2., 49.50 (6e) (a), 560.14 (1) (a) 2.,
4635.02 (5m), 635.07, 635.17 and 635.26 (1) (b); to renumber 49.193 (9m) (a),
549.46 (1) (e) and 635.26 (1) (a); to renumber and amend 16.841 (1), 20.435 (4)
6(dz), 48.651, 49.124 (1m), 49.19 (20), 49.32 (10), 49.46 (1) (cr) and 49.50 (6e) (b);
7to consolidate, renumber and amend 560.14 (1) (a) (intro.) and 1.; to amend
813.101 (6) (a), 16.75 (6) (bm), 16.841 (2), 20.435 (1) (b), 20.435 (1) (bm), 20.435
9(1) (o), 20.435 (4) (a), 20.445 (3) (L), 20.445 (3) (Lm), 40.51 (8), 46.03 (21), 46.032,
1046.215 (1) (k), 46.22 (1) (b) 2. a., 46.22 (1) (b) 2. d., 46.25 (6), 46.25 (7m), 46.253
11(2), 46.258 (1), 46.258 (2) (a) 1., 46.40 (1) (a), 46.45 (intro.), 46.45 (6), 46.62 (2),
1246.979 (1), 46.979 (2) (a), 46.979 (2) (c) (intro.), 46.98 (1) (b), 46.98 (2) (a), 46.98
13(2m) (a), 46.98 (3) (c), 46.98 (4) (a) 2., 46.98 (4) (b), 46.98 (4) (d), 46.98 (4g) (b),
1446.986 (1) (b), 46.986 (1) (m), 46.987 (1) (a), 46.987 (2) (a), 46.995 (2) (c), 48.427
15(3) (a) 5., 48.428 (2), 48.428 (4), 48.651 (1) (intro.), 48.981 (2), 49.015 (2), 49.125
16(1), 49.181 (1) (intro.), (a), (c), (d), (f) and (g) and (2), 49.19 (4e) (a), 49.19 (11) (a)

11. a. (intro.), 49.191 (2), 49.193 (2) (a), 49.193 (4) (g), 49.193 (6) (c), 49.193 (8)
2(a), 49.193 (8) (bm), 49.193 (10m), 49.195 (title), 49.195 (1), 49.195 (3), 49.197
3(1m), 49.197 (3), 49.197 (4), 49.20 (3), 49.26 (title), 49.26 (1) (e), 49.26 (1) (g)
4(intro.), 49.26 (1) (g) 1., 49.26 (1) (gm) (intro.), 49.26 (1) (h) 1. a., 49.26 (1) (hm),
549.26 (1) (hr), 49.27 (6) (c), 49.30 (1) (intro.), 49.32 (7) (a), 49.32 (9) (a), 49.32 (9)
6(b), 49.32 (10) (title), 49.33 (1) (b), 49.33 (1) (c), 49.33 (9), 49.36 (title), 49.36 (3)
7(a), 49.36 (3) (g), 49.36 (4), 49.36 (5), 49.36 (6), 49.36 (7), 49.45 (6m) (br) 1., 49.46
8(1) (a) 1., 49.46 (1) (a) 1m., 49.46 (1) (a) 5., 49.46 (1) (a) 6., 49.46 (1) (a) 9., 49.46
9(1) (a) 10., 49.46 (1) (a) 11., 49.46 (1) (a) 12., 49.46 (1) (a) 13., 49.46 (1) (cg), 49.46
10(1) (cs), 49.46 (1) (d) 1., 49.47 (4) (a) (intro.), 49.50 (6g), 49.50 (6k) (a), 49.50 (6k)
11(b), 49.50 (7) (e), 49.52 (1) (ad) 1., 49.52 (1) (am), 49.52 (1) (d), 49.52 (5), 49.83,
1249.84 (5), 49.85 (1), 49.85 (2) (b) and (3) (b) 1., 49.95 (4m) (a), 49.95 (11), 49.96,
1359.07 (97), 60.23 (25), 66.184, 71.54 (2) (a) (intro.), 106.21 (1) (g), 106.215 (1)
14(fm), 111.70 (1) (a), 115.347, 115.40 (4) (b), 115.40 (4) (c) 1., 115.45 (3m) (a) 2.,
15119.82 (1) (a) 2., 120.13 (2) (g), 120.13 (27m), 185.981 (4t), 185.983 (1) (intro.),
16230.04 (13) (a) and (e) 1. and 2., 230.147 (1), 230.147 (2), 230.147 (3), 600.01 (2)
17(b), 628.34 (3) (a), 628.34 (3) (b), 632.76 (2) (a), 632.896 (4), 767.045 (1) (c) 1.,
18767.075 (1) (c), 767.077 (intro.), 767.078 (1) (a) 2., 767.15 (1), 767.24 (6) (c),
19767.29 (1m) (c), 767.29 (2), 767.29 (4), 767.32 (1) (a), 767.32 (1) (b) 1., 767.47 (6)
20(a) and (b), 814.61 (13) and 948.22 (4) (b); to repeal and recreate 13.101 (6)
21(a), 46.032, 46.495 (1) (am), 49.124 (3), 49.19 (11) (a) 1. a. (intro.), 49.191 (1),
2249.191 (3) (a) and (b), 49.193 (8) (bm), 49.193 (10m), 49.197 (1m), 49.197 (4),
2349.20 (3), 49.26 (2) (b), 49.33 (2), 49.33 (8) (a), 49.36 (2) and 49.45 (6m) (br) 1.;
24and to create 16.39 (4) (bm), 16.75 (6) (bm), 16.841 (1) (b), 20.435 (4) (dz), 20.445
25(3) (jm), 40.51 (8m), 46.98 (1) (ar), 46.98 (1) (bd) and (bf), 46.98 (4) (dg) and (dm),

146.98 (6), 48.40 (1m), 48.57 (3m), 48.57 (3p), 48.651 (1) (a) and (b), 48.651 (2),
249.001 (9), 49.124 (1m) (b), 49.124 (1m) (c), 49.141, 49.143, 49.145, 49.146,
349.147, 49.148, 49.149, 49.151, 49.152, 49.153, 49.155, 49.157, 49.159, 49.161,
449.181, 49.19 (4e) (c), 49.19 (20) (b), 49.193 (2) (am), 49.193 (4) (k) 1m., 49.193
5(4m), 49.193 (6) (e), 49.193 (9m) (ag), 49.193 (12), 49.21 (1) (c), 49.25 (10), 49.27
6(13), 49.32 (10) (b), 49.46 (1) (a) 4m., 49.46 (1) (a) 6m., 49.46 (1) (a) 16., 49.46 (1)
7(am) 3., 49.46 (1) (cb), 49.46 (1) (co) 4., 49.46 (1) (cr) 2., 49.46 (1) (e) 2., 49.465
8(7), 49.47 (4) (ag), 49.47 (4) (an), 49.77 (3v), 102.07 (17), 102.07 (18), 102.29 (8),
9111.70 (4) (n), 111.91 (2) (k), 227.01 (13) (zr), 227.01 (13) (zs), 227.01 (13) (zt),
10632.745, 632.747, 632.749 and 767.075 (1) (cm) of the statutes; relating to:
11creating a new public assistance program for families with dependent children,
12modifying the sunset of the aid to families with dependent children program,
13modifying administration of the food stamp program, modifying the eligibility
14requirements of certain recipients of medical assistance, creating a program to
15provide payment to a relative, other than a parent, who is providing care and
16maintenance for a child, eliminating postsecondary education and vocational
17skills training from the job opportunities and basic skills program, applying the
18learnfare provisions statewide to certain individuals who are 6 to 19 years of
19age, eliminating child care funded under community aids, modifying eligibility
20requirements for low-income and at-risk child care, group health insurance
21reform, creating a tax exemption, making modifications to the job opportunities
22and basic skills program, making modifications to the food stamp employment
23and training program, consolidating state general purpose revenue
24appropriations for public assistance and local aid, providing an exemption from
25emergency rule procedures, providing an exemption from rule-making

1procedures, granting rule-making authority, making appropriations and
2providing penalties.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB591-ASA2, s. 1 3Section 1. 13.101 (6) (a) of the statutes is amended to read:
AB591-ASA2,4,224 13.101 (6) (a) As an emergency measure necessitated by decreased state
5revenues and to prevent the necessity for a state tax on general property, the
6committee may reduce any appropriation made to any board, commission,
7department, the university of Wisconsin system or to any other state agency or
8activity by such amount as it deems feasible, not exceeding 25% of the
9appropriations, except appropriations made by ss. 20.255 (2) (ac), (bc), (bh), (bm), (cg)
10and (cr), 20.395 (1), (2) (cq), (eq) to (ex) and (gq) to (gx), (3), (4) (aq) to (ax) and (6) (aq)
11and (ar), 20.435 (4) (a), (d) (dz) and (e), (6) (a) and (7) (da) or for forestry purposes
12under s. 20.370 (1), or any other moneys distributed to any county, city, village, town
13or school district. Appropriations of receipts and of a sum sufficient shall for the
14purposes of this section be regarded as equivalent to the amounts expended under
15such appropriations in the prior fiscal year which ended June 30. All functions of
16said state agencies shall be continued in an efficient manner, but because of the
17uncertainties of the existing situation no public funds should be expended or
18obligations incurred unless there shall be adequate revenues to meet the
19expenditures therefor. For such reason the committee may make reductions of such
20appropriations as in its judgment will secure sound financial operations of the
21administration for said state agencies and at the same time interfere least with their
22services and activities.
AB591-ASA2, s. 2
1Section 2. 13.101 (6) (a) of the statutes, as affected by 1995 Wisconsin Acts 27
2and .... (this act), is repealed and recreated to read:
AB591-ASA2,5,213 13.101 (6) (a) As an emergency measure necessitated by decreased state
4revenues and to prevent the necessity for a state tax on general property, the
5committee may reduce any appropriation made to any board, commission,
6department, the university of Wisconsin system or to any other state agency or
7activity by such amount as it deems feasible, not exceeding 25% of the
8appropriations, except appropriations made by ss. 20.255 (2) (ac), (bc), (bh), (bm), (cg)
9and (cr), 20.395 (1), (2) (cq), (eq) to (ex) and (gq) to (gx), (3), (4) (aq) to (ax) and (6) (aq)
10and (ar), 20.435 (1) (c), (6) (a) and (7) (da) and 20.445 (3) (a) and (dz) or for forestry
11purposes under s. 20.370 (1), or any other moneys distributed to any county, city,
12village, town or school district. Appropriations of receipts and of a sum sufficient
13shall for the purposes of this section be regarded as equivalent to the amounts
14expended under such appropriations in the prior fiscal year which ended June 30.
15All functions of said state agencies shall be continued in an efficient manner, but
16because of the uncertainties of the existing situation no public funds should be
17expended or obligations incurred unless there shall be adequate revenues to meet the
18expenditures therefor. For such reason the committee may make reductions of such
19appropriations as in its judgment will secure sound financial operations of the
20administration for said state agencies and at the same time interfere least with their
21services and activities.
AB591-ASA2, s. 3 22Section 3. 16.39 (4) (bm) of the statutes is created to read:
AB591-ASA2,5,2423 16.39 (4) (bm) A Wisconsin works group, as defined in s. 49.141 (1) (s), in which
24one member is a participant under s. 49.147 (3) to (5).
AB591-ASA2, s. 4 25Section 4. 16.75 (6) (bm) of the statutes is created to read:
AB591-ASA2,6,6
116.75 (6) (bm) If the secretary determines that it is in the best interest of this
2state to do so, he or she may waive any requirement under subs. (1) to (5) and ss.
316.705 and 16.72 (2) (e) and (f) and (5) with respect to any contract entered into by
4the department of health and social services under s. 49.143, if the department of
5health and social services presents the secretary with a process for the procurement
6of contracts under s. 49.143 and the secretary approves the process.
AB591-ASA2, s. 5 7Section 5. 16.75 (6) (bm) of the statutes, as created by 1995 Wisconsin Act ....
8(this act), is amended to read:
AB591-ASA2,6,159 16.75 (6) (bm) If the secretary determines that it is in the best interest of this
10state to do so, he or she may waive any requirement under subs. (1) to (5) and ss.
1116.705 and 16.72 (2) (e) and (f) and (5) with respect to any contract entered into by
12the department of health and social services industry, labor and job development
13under s. 49.143, if the department of health and social services industry, labor and
14job development
presents the secretary with a process for the procurement of
15contracts under s. 49.143 and the secretary approves the process.
AB591-ASA2, s. 6 16Section 6. 16.841 (1) of the statutes is renumbered 16.841 (1) (intro.) and
17amended to read:
AB591-ASA2,6,1818 16.841 (1) (intro.) In this section, "agency":
AB591-ASA2,6,19 19(a) "Agency" has the meaning given in s. 16.70 (1).
AB591-ASA2, s. 7 20Section 7. 16.841 (1) (b) of the statutes is created to read:
AB591-ASA2,6,2221 16.841 (1) (b) "Child care provider" means a provider licensed under s. 48.65,
22certified under s. 48.651 or established or contracted for under s. 120.13 (14).
AB591-ASA2, s. 8 23Section 8. 16.841 (2) of the statutes is amended to read:
AB591-ASA2,7,324 16.841 (2) The department shall contract with one or more child care providers,
25as defined in s. 46.98 (1) (am),
to supplement the cost of providing suitable space for

1child care services to be offered to the children of employes of agencies whose work
2stations are located in an area designated by the department comprising the central
3portion of the city of Madison.
AB591-ASA2, s. 9 4Section 9. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
5the following amounts for the purposes indicated: - See PDF for table PDF
AB591-ASA2, s. 10 6Section 10. 20.435 (1) (b) of the statutes, as affected by 1995 Wisconsin Act 27,
7section 808, is amended to read:
AB591-ASA2,7,188 20.435 (1) (b) Medical assistance program benefits. Biennially, the amounts in
9the schedule to provide the state share of medical assistance program benefits
10administered under s. 49.45, to provide medical assistance program benefits
11administered under s. 49.45 that are not also provided under par. (o), to provide
12health care coverage under s. 49.153
and to fund the pilot project under s. 46.27 (9)
13and (10). Notwithstanding s. 20.002 (1), the department may transfer from this
14appropriation to the appropriation under sub. (3) (kb) funds in the amount of and for
15the purposes specified in s. 46.485. Notwithstanding ss. 20.001 (3) (b) and 20.002 (1),
16the department may credit or deposit into this appropriation and may transfer
17between fiscal years funds that it transfers from the appropriation under sub. (3) (kb)
18for the purposes specified in s. 46.485 (3r).
AB591-ASA2, s. 11
1Section 11. 20.435 (1) (bm) of the statutes is amended to read:
AB591-ASA2,8,102 20.435 (1) (bm) Medical assistance administration. Biennially, the amounts
3in the schedule to provide the state share of administrative contract costs for the
4medical assistance program under s. 49.45 and health care coverage under s. 49.153
5and to reimburse insurers for their costs under s. 49.475. No state positions may be
6funded in the department of health and social services from this appropriation,
7except positions for the performance of duties under a contract in effect before
8January 1, 1987, related to the administration of the medical assistance program
9between the subunit of the department primarily responsible for administering the
10medical assistance program and another subunit of the department.
AB591-ASA2, s. 12 11Section 12. 20.435 (1) (o) of the statutes is amended to read:
AB591-ASA2,8,1412 20.435 (1) (o) Federal aid; medical assistance. All federal moneys received for
13meeting costs of medical assistance administered under s. 49.45 and for meeting the
14costs of health care coverage under s. 49.153
.
AB591-ASA2, s. 13 15Section 13. 20.435 (4) (a) of the statutes is amended to read:
AB591-ASA2,8,1816 20.435 (4) (a) General program operations. The Biennially, the amounts in the
17schedule for general program operations relating to economic support, including
18field services and administrative services.
AB591-ASA2, s. 14 19Section 14. 20.435 (4) (cn) of the statutes is repealed.
AB591-ASA2, s. 15 20Section 15. 20.435 (4) (d) of the statutes, as affected by 1995 Wisconsin Act 27,
21section 848, is repealed.
AB591-ASA2, s. 16 22Section 16. 20.435 (4) (dc) of the statutes is repealed.
AB591-ASA2, s. 17 23Section 17. 20.435 (4) (de) of the statutes is repealed.
AB591-ASA2, s. 18 24Section 18. 20.435 (4) (df) of the statutes, as affected by 1995 Wisconsin Act
2527
, section 853, is repealed.
AB591-ASA2, s. 19
1Section 19. 20.435 (4) (dg) of the statutes is repealed.
AB591-ASA2, s. 20 2Section 20. 20.435 (4) (dz) of the statutes is created to read:
AB591-ASA2,9,243 20.435 (4) (dz) Public assistance and local assistance aids. Biennially, the
4amounts in the schedule to be allocated under s. 49.181 for paying child care costs
5of individuals who secure unsubsidized employment and lose eligibility for aid to
6families with dependent children as provided under s. 49.50 (6g); for child care and
7related transportation costs under s. 49.50 (7) (e); for child care costs under ss. 46.98
8(2m) and (3), 49.193 (8) and 49.50 (6e) and, with the approval of the department, child
9care costs under s. 49.50 (6k) (b); for county administered public assistance benefits
10under s. 49.52; for payment distribution under s. 49.52 (1) for county administration
11of public assistance benefits and medical assistance eligibility determination and
12payments to American Indian tribes for administration of public assistance
13programs; for the cost of foster care and treatment foster care provided by nonlegally
14responsible relatives under state or county administered programs, if the relatives
15are licensed to operate foster homes or treatment foster homes under s. 48.62; for
16emergency assistance for families with needy children under s. 49.19 (11) (b); for
17funeral expenses under 49.30; for the learnfare program under s. 49.50 (7) and for
18case management services for learnfare pupils under s. 46.62; for the job
19opportunities and basic skills program under s. 49.193; for the work experience and
20job training program under s. 46.253; for the food stamp employment and training
21project under s. 49.124; for aid to 18-year-old students under s. 49.20; for the
22parental responsibility pilot program under s. 49.25; and for the work-not-welfare
23pilot program under s. 49.27. Moneys appropriated under this paragraph may be
24used to match federal funds received under par. (ps). Payments may be made from

1this appropriation to counties for fraud investigation and error reduction under s.
249.197 (1m) and (4).
AB591-ASA2, s. 21 3Section 21. 20.435 (4) (dz) of the statutes, as created by 1995 Wisconsin Act
4.... (this act), is renumbered 20.445 (3) (dz) and amended to read:
AB591-ASA2,11,95 20.445 (3) (dz) Public assistance and local assistance aids. Biennially, the
6amounts in the schedule to be allocated under s. 49.181 for paying child care costs
7of individuals who secure unsubsidized employment and lose eligibility for aid to
8families with dependent children as provided under s. 49.50 (6g) 49.191 (2); for child
9care and related transportation costs under s. 49.50 (7) (e) ss. 49.155, 49.157 and
1049.26 (1) (e)
; for child care costs under ss. 46.98 (2m) and (3), 49.191 (1) and 49.193
11(8) and 49.50 (6e) and, with the approval of the department, child care costs under
12s. 49.50 (6k) (b) 49.191 (3) (b); for county administered public assistance benefits
13under s. 49.52 49.33; for payment distribution under s. 49.52 (1) 49.33 for county
14administration of public assistance benefits and medical assistance eligibility
15determination and payments to American Indian tribes for administration of public
16assistance programs; for payments to Wisconsin works agencies for the Wisconsin
17works program under ss. 49.147 to 49.151 and 49.155 to 49.161 and for Wisconsin
18works health coverage eligibility determination under s. 49.153 (3);
for the cost of
19foster care and treatment foster care provided by nonlegally responsible relatives
20under state or county administered programs, if the relatives are licensed to operate
21foster homes or treatment foster homes under s. 48.62, or for the cost of kinship care
22under s. 48.57 (3m), including assessments under s. 48.57 (3m) (a) 3. and background
23investigations under s. 48.57 (3m) (a) 4.
; for emergency assistance for families with
24needy children under s. 49.19 (11) (b); for funeral expenses under 49.30; for the
25learnfare program under s. 49.50 (7) 49.26 (1) and for case management services for

1learnfare pupils under s. 46.62 49.26 (2); for the job opportunities and basic skills
2program under s. 49.193; for the work experience and job training program under s.
346.253 49.36; for the food stamp employment and training project under s. 49.124;
4for aid to 18-year-old students under s. 49.20; for the parental responsibility pilot
5program under s. 49.25; and for the work-not-welfare pilot program under s. 49.27.
6Moneys appropriated under this paragraph may be used to match federal funds
7received under par. (ps). Payments may be made from this appropriation to counties
8and Wisconsin works agencies for fraud investigation and error reduction under s.
949.197 (1m) and (4).
AB591-ASA2, s. 22 10Section 22. 20.445 (3) (jm) of the statutes is created to read:
AB591-ASA2,11,1311 20.445 (3) (jm) Wisconsin works fees. All moneys received from fees and other
12payments under ss. 49.141 to 49.161 for the purposes of the Wisconsin works
13program.
AB591-ASA2, s. 23 14Section 23. 20.445 (3) (L) of the statutes, as affected by 1995 Wisconsin Act
1527
, section 878, is amended to read:
AB591-ASA2,11,2116 20.445 (3) (L) Welfare fraud and error reduction; state operations. From the
17moneys received as the state's share of the recovery of overpayments and incorrect
18payments under ss. 49.125 (2), 49.191 (3) (c), 49.195 and 49.497 (1), the amounts in
19the schedule for the department's activities to reduce error and fraud in the food
20stamp, aid to families with dependent children, Wisconsin works program and
21medical assistance programs.
AB591-ASA2, s. 24 22Section 24. 20.445 (3) (Lm) of the statutes, as affected by 1995 Wisconsin Act
2327
, section 880, is amended to read:
AB591-ASA2,12,424 20.445 (3) (Lm) Welfare fraud and error reduction; local assistance. From the
25moneys received as the state's share of the recovery of overpayments and incorrect

1payments under ss. 49.125 (2), 49.191 (3) (c), 49.195 and 49.497 (1), all moneys not
2appropriated under par. (L) for county and tribal activities to reduce error and fraud
3in the food stamp, aid to families with dependent children, Wisconsin works program
4and medical assistance program.
AB591-ASA2, s. 25 5Section 25. 40.51 (8) of the statutes is amended to read:
AB591-ASA2,12,86 40.51 (8) Every health care coverage plan offered by the state under sub. (6)
7shall comply with ss. 631.89, 631.90, 631.93 (2), 632.72 (2), 632.745 (1) to (3) and (5),
8632.747,
632.87 (3) to (5), 632.895 (5m) and (8) to (10) and 632.896.
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