LRB-1956/2
RAC:wlj:rs
2011 - 2012 LEGISLATURE
March 6, 2012 - Introduced by Representatives Weininger, Jacque, Marklein,
Thiesfeldt
and Tranel. Referred to Committee on Ways and Means.
AB663,1,3 1An Act to create 13.94 (1) (br) 3. and 13.94 (1) (br) 4. of the statutes; relating
2to:
fraud, waste, and mismanagement in state government and authorizing the
3expenditure of funds.
Analysis by the Legislative Reference Bureau
Current law requires the Legislative Audit Bureau (LAB) to maintain a
toll-free telephone number with voice mail to receive reports of fraud, waste, and
mismanagement in state government. LAB must relay these reports either to the
appropriate LAB employee for investigation or to a state agency for investigation.
If the state agency conducts the investigation, it must deliver the results of the
investigation to LAB in a timely manner.
This bill provides that if an LAB or state agency investigation finds that fraud,
waste, or mismanagement has occurred, the individual submitting the report must
be paid a reward equal to $100,000, 2 percent of the moneys that are recovered in any
legal action resulting from the fraud, waste, or mismanagement, or 2 percent of the
moneys that are saved in the succeeding fiscal year as a result of eliminating the
fraud, waste, or mismanagement, whichever is least. Under the bill, LAB must
determine whether moneys can be saved or recovered as a result of eliminating the
fraud, waste, or mismanagement and must certify to the secretary of administration
the amounts to be paid as rewards to individuals. The secretary of administration
must pay the rewards from the appropriation account that is used to fund the
program that is the focus of the report of fraud, waste, or mismanagement.
The bill also provides that a senator or representative to the assembly may
make a report to LAB on behalf of any individual who contacts the office of the

senator or representative. If an LAB or state agency investigation finds that fraud,
waste, or mismanagement has occurred, the senator or representative must identify
the individual who must be paid the award. A senator or representative may also
introduce a bill on behalf of the individual to eliminate the fraud, waste, or
mismanagement. If the bill is enacted and if LAB determines that the legislation will
eliminate the fraud, waste, or mismanagement, the individual shall be paid the
award.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB663, s. 1 1Section 1. 13.94 (1) (br) 3. of the statutes is created to read:
AB663,2,132 13.94 (1) (br) 3. If an investigation conducted under subd. 1. or 2. finds that
3fraud, waste, or mismanagement has occurred in state government, the individual
4submitting the report of fraud, waste, or mismanagement shall be paid a reward
5equal to $100,000, 2 percent of the moneys that are recovered in any legal action
6resulting from the fraud, waste, or mismanagement, or 2 percent of the moneys that
7are saved in the succeeding fiscal year as a result of eliminating the fraud, waste, or
8mismanagement, whichever is least. The legislative audit bureau shall determine
9whether moneys can be saved or recovered as a result of eliminating the fraud, waste,
10or mismanagement and shall certify to the secretary of administration the amounts
11to be paid as rewards to individuals. The secretary of administration shall pay the
12rewards from the appropriation account that is used to fund the program that is the
13focus of the report of fraud, waste, or mismanagement.
AB663, s. 2 14Section 2. 13.94 (1) (br) 4. of the statutes is created to read:
AB663,3,615 13.94 (1) (br) 4. A senator or representative to the assembly may make a report
16to the bureau under subd. 1. on behalf of any individual who contacts the office of the
17senator or representative. If an investigation conducted under subd. 1. or 2. finds

1that fraud, waste, or mismanagement has occurred, the senator or representative
2shall identify the individual who shall be paid an award under subd. 3. A senator
3or representative may also introduce a bill on behalf of the individual to eliminate
4the fraud, waste, or mismanagement. If the bill is enacted and if the bureau
5determines that the legislation will eliminate the fraud, waste, or mismanagement,
6the individual shall be paid an award under subd. 3.
AB663,3,77 (End)
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