AB535: Bill Text

AB535,10 Section 10. 49.844 of the statutes is created to read:

AB535,7,9 49.844 Optional incentive program for counties and tribes that identify fraud in certain public assistance programs. (1) Definitions. In this section:

AB535,7,11 (a) "County or tribe" means a county having a population of less than 750,000 or a federally recognized American Indian tribe or band in this state.

AB535,7,12 (b) "Department" means the department of health services.

AB535,7,14 (c) "Food stamp program" means the federal food stamp program under 7 USC 2011 to 2036a.

AB535,7,15 (d) "Medical Assistance program" means the program under subch. IV.

AB535,7,20 (2) Medical Assistance program. (a) The department shall establish by rule an optional incentive program under which the department will provide a reward payment to a county or tribe if an employee or officer of the county or tribe identifies suspected fraudulent activity in the Medical Assistance program and the county or tribe does all of the following:

AB535,7,22 1. Investigates the identified suspected fraudulent activity and determines that fraud occurred.

AB535,7,24 2. Establishes a claim for any overpaid benefits resulting from the identified fraudulent activity.

AB535,8,2 3. Pursues criminal prosecution for the identified fraudulent activity if directed to do so by the department.

AB535,8,4 (b) The department shall establish the optional incentive program to include all of the following:

AB535,8,8 1. That, for identifying fraudulent activity, a county or tribe shall choose to receive a reward payment under this subsection in the amount determined under subd. 2. or, alternatively, to retain funds under s. 49.49 (5), 49.497 (2) (a), or 49.847 (3) (a).

AB535,8,13 2. That the amount of a reward payment to a county or tribe under the program established under this subsection is equal to 20 percent of the amount that the department determines will be saved in the Medical Assistance program, during the 12-month period after the fraudulent activity is eliminated, as a result of eliminating the identified fraudulent activity.

AB535,8,17 (c) 1. A county or tribe that chooses to receive a reward payment under this subsection may not retain any funds that were incorrectly paid as a result of the identified fraudulent activity and that are recovered due to the efforts of an employee or officer of the county or tribe.

AB535,8,20 2. Nothing in subd. 1. or par. (b) prohibits a county or tribe from retaining recovered funds under s. 49.497 (2) (a) or 49.847 (3) (a) that were incorrectly paid as the result of a recipient's error rather than fraud.

AB535,8,23 (d) The department may make reward payments under the optional incentive program established under this subsection from the appropriations under s. 20.435 (4) (b), (bm), (L), (nn), and (pa).

AB535,9,3 (3) Food stamp program. (a) The department shall establish by rule an optional incentive program under which the department will provide a reward payment to a county or tribe if an employee or officer of the county or tribe identifies suspected fraudulent activity in the food stamp program and the county or tribe does all of the following:

AB535,9,5 1. Investigates the identified suspected fraudulent activity and determines that fraud occurred.

AB535,9,7 2. Establishes a claim for any overpaid benefits resulting from the identified fraudulent activity.

AB535,9,9 3. Pursues criminal prosecution for the identified fraudulent activity if directed to do so by the department.

AB535,9,11 (b) The department shall establish the optional incentive program to include all of the following:

AB535,9,14 1. That, for identifying fraudulent activity, a county or tribe shall choose to receive a reward payment under this subsection in the amount determined under subd. 2. or, alternatively, to retain funds under s. 49.793 (2) (a) or 49.847 (3) (a).

AB535,9,19 2. That the amount of a reward payment to a county or tribe under the program established under this subsection is equal to 20 percent of the amount that the department determines will be saved in the food stamp program, during the 12-month period after the fraudulent activity is eliminated, as a result of eliminating the identified fraudulent activity.

AB535,9,23 (c) 1. A county or tribe that chooses to receive a reward payment under this subsection may not retain any funds that were incorrectly paid as a result of the identified fraudulent activity and that are recovered due to the efforts of an employee or officer of the county or tribe.

AB535,10,3 2. Nothing in subd. 1. or par. (b) prohibits a county or tribe from retaining recovered funds under s. 49.793 (2) (a) or 49.847 (3) (a) that were incorrectly paid as the result of a recipient's error rather than fraud.

AB535,10,6 (d) The department may make reward payments under the optional incentive program established under this subsection from the appropriations under s. 20.435 (4) (bm), (L), (nn), and (pa).

AB535,10,8 (4) Use of reward payment. A county or tribe may use a reward payment received under this section for any purpose.

AB535,11 Section 11. 49.847 (3) (a) of the statutes is amended to read:

AB535,10,14 49.847 (3) (a) Subject to ss. 49.497 (2) and 49.793 (2), and except as provided in par. (b) and s. 49.844 (2) (b) and (c) and (3) (b) and (c), a county or elected governing body may retain a portion of an amount recovered under this section due to the efforts of an employee or officer of the county, tribe, or band, as provided by the department by rule.

AB535,12 Section 12. Effective dates. This act takes effect on the day after publication, except as follows:

AB535,10,18 (1) The treatment of section 20.435 (4) (b) (by Section 2 ) of the statutes takes effect on January 1, 2016, or on the day after publication, whichever is later.

AB535,10,19 (End)