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.
AB40-ASA1,571,2121 8. Sets standards for establishing and verifying eligibility requirements.
AB40-ASA1,571,2322 9. Develops standards and methodologies to assure accurate eligibility
23determinations and redetermines continuing eligibility.
AB40-ASA1,571,2524 10. Reduces income levels for purposes of determining eligibility to the extent
25allowed by federal law or waiver and subject to the limitations under par. (e) 2.
AB40-ASA1,572,14
1(d) Before implementing a policy proposed under par. (c) that conflicts with a
2statute, and before submitting any amendment or waiver request under par. (e) that
3is necessary to implement any such policy, the department shall submit to the joint
4committee on finance the proposed amendment or waiver request and estimates of
5the projected cost savings associated with that amendment or waiver request. If the
6cochairpersons of the committee do not notify the department within 14 working
7days after the date of the department's submittal that the committee has scheduled
8a meeting for the purpose of reviewing the proposed amendment or waiver request,
9the proposed amendment or waiver request may be submitted to the federal
10department of health and human services. If, within 14 working days after the date
11of the department's submittal, the cochairpersons of the committee notify the
12department that the committee has scheduled a meeting for the purpose of reviewing
13the proposed amendment or waiver request, the proposed amendment or waiver
14requested may be submitted only on approval of the committee.
AB40-ASA1,572,2015 (e) 1. Subject to par. (d), the department shall submit an amendment to the
16state Medical Assistance plan or request a waiver of federal laws related to medical
17assistance, if necessary, to the extent necessary to implement any policy created
18under par. (c). If the federal department of health and human services does not allow
19the amendment or does not grant the waiver, the department may not implement the
20policy.
AB40-ASA1,573,521 2. The department shall request a waiver from the secretary of the federal
22department of health and human services to permit the department to have in effect
23eligibility standards, methodologies, and procedures under the state Medical
24Assistance plan or waivers of federal laws related to medical assistance that are more
25restrictive than those in place on March 23, 2010. If the waiver request does not

1receive federal approval before December 31, 2011, the department shall reduce
2income levels on July 1, 2012, for the purposes of determining eligibility to 133
3percent of the federal poverty line for adults who are not pregnant and not disabled,
4to the extent permitted under 42 USC 1396a (gg), if the department follows the
5procedures under 42 USC 1396a (gg) (3).
AB40-ASA1,573,8 6(f) Within 90 days after the effective date of this paragraph .... [LRB inserts
7date], and every 90 days thereafter, the department shall submit to the joint
8committee on finance a report that contains all of the following information:
AB40-ASA1,573,119 1. An updated description of any Medical Assistance program changes
10implemented by the department, including any amendments to the Medical
11Assistance state plan.
AB40-ASA1,573,1312 2. An updated estimate of the projected savings associated with any changes
13described under subd. 1.
AB40-ASA1,573,1614 3. An updated projection of the total Medical Assistance program benefit
15expenditures during the fiscal biennium and an analysis of how these projected
16expenditures compare to the funding provided in the 2011-13 biennial budget act.
AB40-ASA1, s. 1423m 17Section 1423m. 49.45 (2m) of the statutes, as affected by 2011 Wisconsin Act
18.... (this act), is repealed.
AB40-ASA1, s. 1424p 19Section 1424p. 49.45 (3) (n) of the statutes, as created by 2011 Wisconsin Act
2010
, is repealed and recreated to read:
AB40-ASA1,573,2221 49.45 (3) (n) This subsection does not apply if the department creates a policy
22under sub. (2m) (c) 4., to the extent that the policy conflicts with this subsection.
AB40-ASA1, s. 1424q 23Section 1424q. 49.45 (3) (n) of the statutes, as affected by 2011 Wisconsin Act
24.... (this act), is repealed.
AB40-ASA1, s. 1427 25Section 1427. 49.45 (5m) (am) of the statutes is amended to read:
AB40-ASA1,574,7
149.45 (5m) (am) Notwithstanding sub. (3) (e), from the appropriation accounts
2under s. 20.435 (4) (b), (gm), (o), (w) and (xc), the department shall distribute not
3more than $5,000,000 in each fiscal year, to provide supplemental funds to rural
4hospitals that, as determined by the department, have high utilization of inpatient
5services by patients whose care is provided from governmental sources, except that
6the department may not distribute funds to a rural hospital to the extent that the
7distribution would exceed any limitation under 42 USC 1396b (i) (3).
AB40-ASA1, s. 1428 8Section 1428. 49.45 (6m) (a) 6. of the statutes is amended to read:
AB40-ASA1,574,129 49.45 (6m) (a) 6. "Resource Utilization Groupings III" means a comparative
10resource utilization grouping that classifies each facility resident based on
11information obtained from performing, for the resident, a minimum data set
12assessment developed by the federal Centers for Medicare and Medicaid Services.
AB40-ASA1, s. 1429 13Section 1429. 49.45 (6m) (ag) (intro.) of the statutes is amended to read:
AB40-ASA1,574,2014 49.45 (6m) (ag) (intro.) Payment for care provided in a facility under this
15subsection made under s. 20.435 (4) (b), (gm), (o), (pa), or (w) shall, except as provided
16in pars. (bg), (bm), and (br), be determined according to a prospective payment
17system updated annually by the department. The payment system shall implement
18standards that are necessary and proper for providing patient care and that meet
19quality and safety standards established under subch. II of ch. 50 and ch. 150. The
20payment system shall reflect all of the following:
AB40-ASA1, s. 1430 21Section 1430. 49.45 (6m) (ag) 3p. a. of the statutes is amended to read:
AB40-ASA1,574,2422 49.45 (6m) (ag) 3p. a. The system shall may incorporate acuity measurements
23under the most recent Resource Utilization Groupings III methodology to determine
24factors for case-mix adjustment.
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