AB607,2
1Section 2. 13.94 (1s) (c) 9. of the statutes is created to read:
AB607,3,32 13.94 (1s) (c) 9. The department of children and families for the cost of an audit
3performed under sub. (1) (fm).
AB607,3 4Section 3. 20.001 (2) (e) of the statutes is amended to read:
AB607,3,125 20.001 (2) (e) Federal revenues. "Federal revenues" consist of moneys received
6from the federal government, except that under s. 20.437 (2) (md) "federal revenues"
7also include moneys treated as refunds of expenditures, and under s. 20.437 (2) (me)
8and (mf) "federal revenues" consist only of moneys treated as received from the
9federal government. Federal revenues may be deposited as program revenues in the
10general fund or as segregated revenues in a segregated fund. In either case they are
11indicated in s. 20.005 by the addition of "-F" after the abbreviation assigned under
12pars. (b) and (d).
AB607,4 13Section 4. 20.437 (2) (me) of the statutes is amended to read:
AB607,3,2514 20.437 (2) (me) Child care and temporary assistance overpayment recovery. All
15Except as provided in par. (mf), all moneys received from the recovery of
16overpayments, and incorrect or disallowed payments, and voluntary repayments of
17federal Child Care and Development Fund block grant funds, of federal Temporary
18Assistance for Needy Families block grant funds, and of state moneys paid from other
19appropriations to meet maintenance-of-effort requirements under the federal
20Temporary Assistance for Needy Families block grant program under 42 USC 601
21to 619 and the federal Child Care and Development Fund block grant program under
2242 USC 9858 that the department elects to treat as federal revenue, for costs related
23to recovering the overpayments and incorrect or disallowed payments, for activities
24to reduce errors under the Wisconsin Works program under ss. 49.141 to 49.161, and
25for any of the purposes specified under s. 49.175 (1).
AB607,5
1Section 5. 20.437 (2) (mf) of the statutes is created to read:
AB607,4,52 20.437 (2) (mf) Wisconsin Shares overpayment recovery. All moneys received
3from the recovery of overpayments made under s. 49.155 that the department elects
4to treat as federal revenue, for activities to investigate and reduce fraud in the
5program under s. 49.155 and for direct child care services under s. 49.155.
AB607,6 6Section 6. 49.155 (6) (e) 3. (intro.), b., c., d. and e. of the statutes are amended
7to read:
AB607,4,108 49.155 (6) (e) 3. (intro.) The department may shall modify a child care
9provider's payment rate under subd. 2. on the basis of the provider's quality rating,
10as described in the quality rating plan, in the following manner:
AB607,4,1211 b. For a child care provider who receives a 2-star rating, the department may
12reduce
shall pay the maximum payment rate by up to 5 percent.
AB607,4,1413 c. For a child care provider who receives a 3-star rating, the department may
14pay up to shall increase the maximum payment rate by 5 percent.
AB607,4,1615 d. For a child care provider who receives a 4-star rating, the department may
16shall increase the maximum payment rate by up to 10 percent.
AB607,4,1917 e. For a child care provider who receives a 5-star rating, the department may
18shall increase the maximum payment rate for such a child care provider by up to 25
19percent.
AB607,7 20Section 7. 49.155 (6d) (a) 3. of the statutes is repealed.
AB607,8 21Section 8. 49.155 (6f) of the statutes is created to read:
AB607,5,222 49.155 (6f) Basis for payments to licensed family child care centers. The
23department may not calculate the payment under this section for a child receiving
24care from a family child care center, as defined in s. 49.136 (1) (j), that is licensed
25under s. 48.65 based on the actual attendance of the child. The department shall

1calculate payment for a child who receives care from such a licensed family child care
2center based on the enrollment of the child at the licensed family child care center.
AB607,9 3Section 9. 49.155 (7d) of the statutes is created to read:
AB607,5,74 49.155 (7d) Fraud prevention program. The department shall establish
5policies and procedures to prevent fraud in the program under this section.
6Notwithstanding s. 227.10 (1), the department need not promulgate policies and
7procedures under this section as rules under ch. 227.
AB607,10 8Section 10. 49.175 (1) (intro.) of the statutes is amended to read:
AB607,5,129 49.175 (1) Allocation of funds. (intro.) Except as provided in sub. (2), within
10the limits of the appropriations under s. 20.437 (2) (a), (cm), (dz), (k), (kx), (L), (mc),
11(md), (me), (mf), and (s), the department shall allocate the following amounts for the
12following purposes:
AB607,11 13Section 11. 49.197 (1m) of the statutes is amended to read:
AB607,6,614 49.197 (1m) Fraud investigation. From the appropriations under s. 20.437 (2)
15(dz), (kx), (L), (mc), (md), (me), (mf), and (nL), the department shall establish a
16program to investigate suspected fraudulent activity on the part of recipients of aid
17to families with dependent children under s. 49.19, on the part of participants in the
18Wisconsin Works program under ss. 49.141 to 49.161, and, if the department of
19health services contracts with the department under sub. (5), on the part of
20recipients of medical assistance under subch. IV, food stamp benefits under the food
21stamp program under 7 USC 2011 to 2036, supplemental security income payments
22under s. 49.77, payments for the support of children of supplemental security income
23recipients under s. 49.775, and health care benefits under the Badger Care health
24care program under s. 49.665. The department's activities under this subsection may
25include, but are not limited to, comparisons of information provided to the

1department by an applicant and information provided by the applicant to other
2federal, state, and local agencies, development of an advisory welfare investigation
3prosecution standard, and provision of funds to county departments under ss.
446.215, 46.22, and 46.23 or multicounty consortia, as defined in s. 49.78 (1) (br), and
5to Wisconsin Works agencies to encourage activities to detect fraud. The department
6shall cooperate with district attorneys regarding fraud prosecutions.
AB607,12 7Section 12. 49.197 (2) (b) 1. of the statutes is amended to read:
AB607,6,218 49.197 (2) (b) 1. Subject to subd. 2., the department shall by rule establish an
9incentive program that, using moneys from the appropriation under s. 20.437 (2) (mf)
10and
from the allocation under s. 49.175 (1) (p), rewards county departments,
11Wisconsin Works agencies, and tribal governing bodies that administer the subsidy
12program for identifying fraud in the subsidy program. The rules shall specify that
13a county department, Wisconsin Works agency, or tribal governing body shall
14receive, for identifying fraudulent activity under the subsidy program on the part of
15a child care provider, an amount equal to the average monthly subsidy payment per
16child during the prior fiscal year, multiplied by the number of children participating
17in the subsidy program for whom the provider provides care, multiplied by 1.5
18months. A county department, Wisconsin Works agency, or tribal governing body
19may use payments received under this subsection for any purpose for which moneys
20under the Temporary Assistance for Needy Families block grant program may be
21used under federal law.
AB607,13 22Section 13. Initial applicability.
AB607,6,2523 (1) Child care provider payments. The treatment of section 49.155 (6) (e) 3.
24(intro.), b., c., d., and e. and (6f) of the statutes first applies to payment for child care
25provided on the effective date of this subsection.
AB607,14
1Section 14. Effective date.
AB607,7,32 (1) This act takes effect on the first day of the first month beginning after
3publication.
AB607,7,44 (End)
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