(1m) Fraud investigation. From the appropriations under s. 20.445 (3) (dz) , (kx) , (L) , (md) , (n) , and (nL) , the department shall establish a program to investigate suspected fraudulent activity on the part of recipients of aid to families with dependent children under s. 49.19 , on the part of participants in the Wisconsin works program under ss. 49.141 to 49.161 , and, if the department of health and family services contracts with the department under sub. (5) , on the part of recipients of medical assistance under subch. IV and food stamp benefits under the food stamp program under 7 USC 2011 to 2036 . The department's activities under this subsection may include, but are not limited to, comparisons of information provided to the department by an applicant and information provided by the applicant to other federal, state, and local agencies, development of an advisory welfare investigation prosecution standard, and provision of funds to county departments under ss. 46.215 , 46.22 , and 46.23 and to Wisconsin works agencies to encourage activities to detect fraud. The department shall cooperate with district attorneys regarding fraud prosecutions.
(3) State error reduction activities. The department shall conduct activities to reduce payment errors in Wisconsin works under ss. 49.141 to 49.161 and, if the department of health and family services contracts with the department under sub. (5) , the medical assistance program under subch. IV and the food stamp program under 7 USC 2011 to 2036 .
(4) County and tribal error reduction. If the department of health and family services contracts with the department under sub. (5) , the department shall provide funds from the appropriation under s. 20.445 (3) (kx) to counties and governing bodies of federally recognized American Indian tribes administering medical assistance under subch. IV or the food stamp program under 7 USC 2011 to 2036 to offset administrative costs of reducing payment errors in those programs.
(5) Contracts for medical assistance and food stamps. The department of health and family services may contract with the department to investigate suspected fraudulent activity on the part of recipients of medical assistance under subch. IV or recipients of food stamp benefits under the food stamp program under 7 USC 2011 to 2036 as provided in this section.