AB40-ASA1,561,2321 49.155 (6) (e) 1. In this paragraph, "quality rating plan" means the plan for
22implementing the child care quality rating system under s. 48.659 submitted by the
23department under 2009 Wisconsin Act 28, section 9108 (7f).
AB40-ASA1, s. 1381 24Section 1381. 49.155 (6) (e) 3. of the statutes is created to read:
AB40-ASA1,562,3
149.155 (6) (e) 3. Beginning on July 1, 2012, the department may modify a child
2care provider's reimbursement rate under subd. 2. on the basis of the provider's
3quality rating, as described in the quality rating plan, in the following manner:
AB40-ASA1,562,54 a. For a child care provider who receives a 1-star rating, the department shall
5deny reimbursement.
AB40-ASA1,562,76 b. For a child care provider who receives a 2-star rating, the department may
7reduce the maximum reimbursement rate by up to 5 percent.
AB40-ASA1,562,98 c. For a child care provider who receives a 3-star rating, the department may
9pay up to the maximum reimbursement rate.
AB40-ASA1,562,1110 d. For a child care provider who receives a 4-star rating, the department may
11increase the maximum reimbursement rate by up to 5 percent.
AB40-ASA1,562,1512 e. For a child care provider who receives a 5-star rating, the department may
13increase the maximum reimbursement rate by up to 10 percent, except that
14beginning on January 1, 2013, the department may increase the maximum
15reimbursement rate for such a child care provider by up to 25 percent.
AB40-ASA1, s. 1382 16Section 1382. 49.155 (6) (e) 4. of the statutes is created to read:
AB40-ASA1,562,2017 49.155 (6) (e) 4. The department may use a severity-index tool, as described
18in the quality rating plan, to disqualify child care providers who receive a low quality
19rating, as described in the quality rating plan, from receiving payment under this
20section.
AB40-ASA1, s. 1382g 21Section 1382g. 49.155 (6) (e) 5. of the statutes is created to read:
AB40-ASA1,562,2522 49.155 (6) (e) 5. For purposes of modifying reimbursement rates under subd.
233., the department shall assign a child care provider that is accredited from the
24Council on Accreditation a 4-star rating or 5-star rating, whichever the department
25determines is appropriate.
AB40-ASA1, s. 1383
1Section 1383. 49.155 (6d) of the statutes is created to read:
AB40-ASA1,563,32 49.155 (6d) Cost-saving measures. (a) To reduce costs under the program
3under this section, the department may do any of the following:
AB40-ASA1,563,64 1. Notwithstanding sub. (1m), implement a waiting list for receipt of a child
5care subsidy under this section, except that a Wisconsin Works program participant
6may not be placed on any waiting list implemented under this subdivision.
AB40-ASA1,563,87 2. Notwithstanding sub. (5), increase the copayment amount that an individual
8must pay toward the cost of child care received under this section.
AB40-ASA1,563,109 3. Notwithstanding sub. (6), adjust the amount of reimbursement paid to child
10care providers providing child care services under this section.
AB40-ASA1,563,1211 4. Notwithstanding sub. (1m), adjust the gross income levels for eligibility for
12receipt of a child care subsidy under this section.
AB40-ASA1,563,1513 (b) If the department intends to take any of the actions under par. (a), the
14department shall submit to the joint committee on finance a report that sets out its
15plan for implementing the cost-saving measures.
AB40-ASA1, s. 1384c 16Section 1384c. 49.159 (3) of the statutes is amended to read:
AB40-ASA1,563,2117 49.159 (3) Other custodial parents. A custodial parent in a Wisconsin works
18Works group in which the other custodial parent is a participant in a Wisconsin
19works Works employment position or is receiving case management services under
20s. 49.147 (2) (am)
is eligible for employment training and job search assistance
21services provided by the Wisconsin works Works agency.
AB40-ASA1, s. 1385 22Section 1385. 49.162 of the statutes, as affected by 2009 Wisconsin Act 333
23and 2011 Wisconsin Act .... (this act), is repealed.
AB40-ASA1, s. 1385c 24Section 1385c. 49.162 (3) (am) 5. of the statutes is created to read:
AB40-ASA1,564,5
149.162 (3) (am) 5. Host sites for employing individuals or placing work crews
2under this section must be businesses that are operated for profit, except that in the
3case of a natural disaster for which the governor has declared a state of emergency
4under s. 323.10, the department shall give a preference to any work crew placement
5or host site involved in natural disaster recovery.
AB40-ASA1, s. 1386 6Section 1386. 49.165 (2) (c) (intro.) of the statutes is amended to read:
AB40-ASA1,564,147 49.165 (2) (c) (intro.) No grant may be made to an organization which provides
8or will provide shelter facilities unless the department of commerce safety and
9professional services
determines that the physical plant of the facility will not be
10dangerous to the health or safety of the residents when the facility is in operation.
11No grant may be given to an organization which provides or will provide shelter
12facilities or private home shelter care unless the organization ensures that the
13following services will be provided either by that organization or by another
14organization, person or agency:
AB40-ASA1, s. 1388 15Section 1388. 49.175 (1) (intro.) of the statutes, as affected by 2009 Wisconsin
16Act 28
, section 1227, is amended to read:
AB40-ASA1,564,2017 49.175 (1) Allocation of funds. (intro.) Except as provided in sub. (2), within
18the limits of the appropriations under s. 20.437 (2) (a), (cm), (dz), (k), (kx), (L), (mc),
19(md), (me), (mf), and (s), the department shall allocate the following amounts for the
20following purposes:
AB40-ASA1, s. 1389 21Section 1389. 49.175 (1) (a) of the statutes is amended to read:
AB40-ASA1,564,2422 49.175 (1) (a) Wisconsin Works benefits. For Wisconsin Works benefits,
23$49,139,400 $74,650,100 in fiscal year 2009-10 2011-12 and $51,229,600
24$72,131,500 in fiscal year 2010-11 2012-13.
AB40-ASA1, s. 1390 25Section 1390. 49.175 (1) (b) of the statutes is amended to read:
AB40-ASA1,565,4
149.175 (1) (b) Wisconsin Works administration. For administration of
2Wisconsin Works performed under contracts under s. 49.143, $8,247,000
3$10,107,200 in fiscal year 2009-10 2011-12 and $8,247,000 $10,107,200 in fiscal
4year 2010-11 2012-13.
AB40-ASA1, s. 1391 5Section 1391. 49.175 (1) (f) of the statutes is amended to read:
AB40-ASA1,565,96 49.175 (1) (f) Wisconsin Works ancillary services. For program services under
7Wisconsin Works provided under contracts under s. 49.143, $38,471,500 $47,229,300
8in fiscal year 2009-10 2011-12 and $35,471,500 $47,229,300 in fiscal year 2010-11
92012-13.
AB40-ASA1, s. 1392 10Section 1392. 49.175 (1) (g) of the statutes is amended to read:
AB40-ASA1,565,1411 49.175 (1) (g) State administration of public assistance programs and costs of
12overpayment collections.
For state administration of public assistance programs and
13costs associated with the collection of public assistance overpayments, $16,985,900
14in fiscal year 2009-10 and $17,091,700
$12,918,900 in each fiscal year 2010-11.
AB40-ASA1, s. 1393 15Section 1393. 49.175 (1) (i) of the statutes is amended to read:
AB40-ASA1,565,1916 49.175 (1) (i) Emergency assistance. For emergency assistance under s. 49.138,
17$6,500,000
and for transfer to the department of administration for low-income
18energy or weatherization assistance programs, $6,200,000
in fiscal year 2009-10
192011-12 and $6,000,000 in fiscal year 2010-11 2012-13.
AB40-ASA1, s. 1393L 20Section 1393L. 49.175 (1) (L) of the statutes is created to read:
AB40-ASA1,565,2221 49.175 (1) (L) Transitional jobs demonstration project. For the transitional jobs
22demonstration project under s. 49.162, $12,000,000 in fiscal year 2011-12.
AB40-ASA1, s. 1394 23Section 1394. 49.175 (1) (p) of the statutes is amended to read:
AB40-ASA1,566,3
149.175 (1) (p) Direct child care services. For direct child care services under s.
249.155, $384,987,600 $301,631,000 in fiscal year 2009-10 2011-12 and $402,496,800
3$298,523,500 in fiscal year 2010-11 2012-13.
AB40-ASA1, s. 1395 4Section 1395. 49.175 (1) (q) of the statutes is amended to read:
AB40-ASA1,566,95 49.175 (1) (q) Child care state administration and child care licensing
6activities.
For administration of child care programs under s. 49.155 and the
7allocation under s. 49.155 (1g) (c) for child care licensing activities, $8,534,700
8$19,702,100 in fiscal year 2009-10 2011-12 and $8,889,700 $19,783,800 in fiscal
9year 2010-11 2012-13.
AB40-ASA1, s. 1396 10Section 1396. 49.175 (1) (qm) of the statutes is amended to read:
AB40-ASA1,566,1311 49.175 (1) (qm) Quality care for quality kids. For the child care quality
12improvement activities specified in s. 49.155 (1g), $5,384,600 $13,486,700 in fiscal
13year 2009-10 2011-12 and $5,384,600 $13,169,400 in fiscal year 2010-11 2012-13.
AB40-ASA1, s. 1397 14Section 1397. 49.175 (1) (r) of the statutes is amended to read:
AB40-ASA1,566,1815 49.175 (1) (r) Children of recipients of supplemental security income. For
16payments made under s. 49.775 for the support of the dependent children of
17recipients of supplemental security income, $29,899,800 in fiscal year 2009-10 and
18$29,933,200
$31,232,200 in each fiscal year thereafter.
AB40-ASA1, s. 1398 19Section 1398. 49.175 (1) (s) of the statutes is amended to read:
AB40-ASA1,566,2320 49.175 (1) (s) Kinship care, long-term kinship care, and foster care assistance.
21For the kinship care and long-term kinship care programs under s. 48.57 (3m), (3n),
22and (3p) and for foster care for relatives under s. 48.62, $24,435,000 in fiscal year
232009-10 and $24,435,000
$21,375,800 in each fiscal year 2010-11.
AB40-ASA1, s. 1399 24Section 1399. 49.175 (1) (v) of the statutes is created to read:
AB40-ASA1,567,3
149.175 (1) (v) Program improvement plan. For services provided under the
2child welfare program improvement plan developed under 45 CFR 1355.35, $680,400
3in fiscal year 2011-12 and $1,360,800 in each fiscal year thereafter.
AB40-ASA1, s. 1400 4Section 1400. 49.175 (1) (zh) of the statutes is amended to read:
AB40-ASA1,567,85 49.175 (1) (zh) Earned income tax credit supplement. For the transfer of
6moneys from the appropriation account under s. 20.437 (2) (md) to the appropriation
7account under s. 20.835 (2) (kf) for the earned income tax credit, $6,664,200 in fiscal
8year 2009-10 and $6,664,200
$43,664,200 in each fiscal year 2010-2011.
AB40-ASA1, s. 1402m 9Section 1402m. 49.197 (1m) of the statutes is amended to read:
AB40-ASA1,568,210 49.197 (1m) Fraud investigation. From the appropriations under s. 20.437 (2)
11(dz), (kx), (L), (mc), (md), (me), and (nL), the department shall establish a program
12to investigate suspected fraudulent activity on the part of recipients of aid to families
13with dependent children under s. 49.19, on the part of participants in the Wisconsin
14Works program under ss. 49.141 to 49.161, and, if the department of health services
15contracts with the department under sub. (5), on the part of recipients of medical
16assistance under subch. IV, food stamp benefits under the food stamp program under
177 USC 2011 to 2036, supplemental security income payments under s. 49.77,
18payments for the support of children of supplemental security income recipients
19under s. 49.775, and health care benefits under the Badger Care health care program
20under s. 49.665. The department's activities under this subsection may include, but
21are not limited to, comparisons of information provided to the department by an
22applicant and information provided by the applicant to other federal, state, and local
23agencies, development of an advisory welfare investigation prosecution standard,
24and provision of funds to county departments under ss. 46.215, 46.22, and 46.23 or
25multicounty consortia, as defined in s. 49.78 (1) (br),
and to Wisconsin Works

1agencies to encourage activities to detect fraud. The department shall cooperate
2with district attorneys regarding fraud prosecutions.
AB40-ASA1, s. 1405g 3Section 1405g. 49.197 (2) of the statutes is repealed and recreated to read:
AB40-ASA1,568,54 49.197 (2) Incentive program for local fraud detection. (a) In this
5subsection:
AB40-ASA1,568,66 1. "County department" means a county department under s. 46.22 or 46.23.
AB40-ASA1,568,77 2. "Subsidy program" means the child care subsidy program under s. 49.155.
AB40-ASA1,568,98 3. "Tribal governing body" means an elected governing body of a federally
9recognized American Indian tribe.
AB40-ASA1,568,2210 (b) 1. Subject to subd. 2., the department shall by rule establish an incentive
11program that, using moneys from the allocation under s. 49.175 (1) (p), rewards
12county departments, Wisconsin Works agencies, and tribal governing bodies that
13administer the subsidy program for identifying fraud in the subsidy program. The
14rules shall specify that a county department, Wisconsin Works agency, or tribal
15governing body shall receive, for identifying fraudulent activity under the subsidy
16program on the part of a child care provider, an amount equal to the average monthly
17subsidy payment per child during the prior fiscal year, multiplied by the number of
18children participating in the subsidy program for whom the provider provides care,
19multiplied by 1.5 months. A county department, Wisconsin Works agency, or tribal
20governing body may use payments received under this subsection for any purpose for
21which moneys under the Temporary Assistance for Needy Families block grant
22program may be used under federal law.
AB40-ASA1,569,1023 2. No later than January 1, 2012, the department shall submit its plan for the
24incentive program to the cochairpersons of the joint committee on finance for review
25by the committee. If the cochairpersons of the committee do not notify the

1department that the committee has scheduled a meeting for the purpose of reviewing
2the proposed plan within 14 working days after the date of the department's
3submittal, the department shall promulgate the rules for the incentive program in
4accordance with its proposed plan. If, within 14 working days after the date of the
5department's submittal, the cochairpersons of the committee notify the department
6that the committee has scheduled a meeting for the purpose of reviewing the
7proposed plan, the department may not promulgate the rules for the incentive
8program unless the committee approves the proposed plan. If the committee
9modifies and approves the proposed plan, the department may promulgate the rules
10for the incentive program only as modified by the committee.
AB40-ASA1, s. 1408m 11Section 1408m. 49.197 (4) of the statutes is amended to read:
AB40-ASA1,569,2112 49.197 (4) County and tribal error reduction. If the department of health
13services contracts with the department under sub. (5), the department shall provide
14funds from the appropriation under s. 20.437 (2) (kx) to counties, multicounty
15consortia, as defined in s. 49.78 (1) (br),
and governing bodies of federally recognized
16American Indian tribes administering Medical Assistance under subch. IV, the food
17stamp program under 7 USC 2011 to 2036, the supplemental security income
18payments program under s. 49.77, the program providing payments for the support
19of children of supplemental security income recipients under s. 49.775, and the
20Badger Care health care program under s. 49.665 to offset administrative costs of
21reducing payment errors in those programs.
AB40-ASA1, s. 1415 22Section 1415. 49.265 (4) (a) of the statutes is amended to read:
AB40-ASA1,569,2523 49.265 (4) (a) The department shall distribute the federal community services
24block grant funds received under 42 USC 9903 and deposited in credited to the
25appropriations appropriation account under s. 20.437 (1) (mc) and (md) (2) (mg).
AB40-ASA1, s. 1420m
1Section 1420m. 49.43 (2r) of the statutes is created to read:
AB40-ASA1,570,42 49.43 (2r) "County," "county department," and "county department under s.
346.215, 46.22, or 46.23" includes a multicounty consortium in accordance with a
4contract under s. 49.78 (2).
AB40-ASA1, s. 1422m 5Section 1422m. 49.43 (8m) of the statutes is created to read:
AB40-ASA1,570,66 49.43 (8m) "Multicounty consortium" has the meaning given in s. 49.78 (1) (br).
AB40-ASA1, s. 1423k 7Section 1423k. 49.45 (2m) of the statutes, as created by 2011 Wisconsin Act
810
, is repealed and recreated to read:
AB40-ASA1,570,139 49.45 (2m) Authorization for modifications to programs; study. (a) In this
10subsection, "Medical Assistance program" includes any program operated under this
11subchapter, demonstration program operated under 42 USC 1315, and program
12operated under a waiver of federal law relating to medical assistance that is granted
13by the federal department of health and human services.
AB40-ASA1,570,1714 (b) The department shall study potential changes to the Medical Assistance
15state plan and to waivers of federal law relating to medical assistance obtained from
16the federal department of health and human services for all of the following
17purposes:
AB40-ASA1,570,1918 1. Increasing the cost effectiveness and efficiency of care and the care delivery
19system for Medical Assistance programs.
AB40-ASA1,570,2120 2. Limiting switching from private health insurance to Medical Assistance
21programs.
AB40-ASA1,570,2322 3. Ensuring the long-term viability and sustainability of Medical Assistance
23programs.
AB40-ASA1,570,2524 4. Advancing the accuracy and reliability of eligibility for Medical Assistance
25programs and claims determinations and payments.
AB40-ASA1,571,2
15. Improving the health status of individuals who receive benefits under a
2Medical Assistance program.
AB40-ASA1,571,43 6. Aligning Medical Assistance program benefit recipient and service provider
4incentives with health care outcomes.
AB40-ASA1,571,55 7. Supporting responsibility and choice of medical assistance recipients.
AB40-ASA1,571,96 (c) Subject to par. (d), if the department determines, as a result of the study
7under par. (b), that revision of existing statutes or rules would be necessary to
8advance a purpose described in par. (b) 1. to 7., the department may propose a policy
9that makes any of the following changes related to Medical Assistance programs:
AB40-ASA1,571,1110 1. Requires cost sharing from program benefit recipients up to the maximum
11allowed by federal law or a waiver of federal law.
AB40-ASA1,571,1312 2. Authorizes providers to deny care or services if a program benefit recipient
13is unable to share costs, to the extent allowed by federal law or waiver.
AB40-ASA1,571,1514 3. Modifies existing benefits or establishes various benefit packages and offers
15different packages to different groups of recipients.
AB40-ASA1,571,1616 4. Revises provider reimbursement models for particular services.
AB40-ASA1,571,1717 5. Mandates that program benefit recipients enroll in managed care.
AB40-ASA1,571,1818 6. Restricts or eliminates presumptive eligibility.
AB40-ASA1,571,2019 7. To the extent permitted by federal law, imposes restrictions on providing
20benefits to individuals who are not citizens of the United States.
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