(1m) Fraud investigation. From the appropriations under s. 20.437 (2) (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 services contracts with the department under sub. (5) , on the part of recipients of medical assistance under subch. IV , food stamp benefits under the food stamp program under 7 USC 2011 to 2036 , supplemental security income payments under s. 49.77 , payments for the support of children of supplemental security income recipients under s. 49.775 , and health care benefits under the Badger Care health care program under s. 49.665 . 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.
(2) Fraud investigation by counties and tribal governing bodies.
(a) In this subsection, "tribal governing body" means an elected governing body of a federally recognized American Indian tribe.
(b) A county or tribal governing body may establish a program to investigate suspected fraudulent activity on the part of participants in the Wisconsin Works program under this subchapter, including persons receiving a child care subsidy under s. 49.155 , and to recover incorrect payments made or incorrect benefits provided as a result of fraudulent activity.
(c) If a county or tribal governing body establishes a program under par. (b) , the county or tribal governing body shall pay to the department all of the following:
1. Fifty percent of all amounts recovered by the county or tribal governing body as a result of its program during the first month in which it recovers any amounts as a result of its program.
2. Sixty-six percent of all amounts recovered by the county or tribal governing body as a result of its program during the 2nd month in which it recovers any amounts as a result of its program.
3. One hundred percent of all amounts recovered by the county or tribal governing body as a result of its program after the 2nd month in which it recovers any amounts as a result of its program.
(d) The department shall credit all moneys received under this subsection to the appropriation account under s. 20.437 (2) (g) . The department shall use moneys recovered as a result of fraud in the Wisconsin Works program, other than the child care subsidy program under s. 49.155 , for the Wisconsin Works program other than the child care subsidy program and shall use moneys recovered as a result of fraud in the child care subsidy program under s. 49.155 for the child care subsidy program.
(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 services contracts with the department under sub. (5) , the Medical Assistance program under subch. IV , the food stamp program under 7 USC 2011 to 2036 , the supplemental security income payments program under s. 49.77 , the program providing payments for the support of children of supplemental security income recipients under s. 49.775 , and the Badger Care health care program under s. 49.665 .
(4) County and tribal error reduction. If the department of health services contracts with the department under sub. (5) , the department shall provide funds from the appropriation under s. 20.437 (2) (kx) to counties and governing bodies of federally recognized American Indian tribes administering Medical Assistance under subch. IV , the food stamp program under 7 USC 2011 to 2036 , the supplemental security income payments program under s. 49.77 , the program providing payments for the support of children of supplemental security income recipients under s. 49.775 , and the Badger Care health care program under s. 49.665 to offset administrative costs of reducing payment errors in those programs.
(5) Contracts for medical assistance, food stamps, supplemental security income, and caretaker supplement. Notwithstanding s. 49.845 (1) and (2) , the department of health services may contract with the department to investigate suspected fraudulent activity on the part of recipients of medical assistance under subch. IV , food stamp benefits under the food stamp program under 7 USC 2011 to 2036 , supplemental security income payments under s. 49.77 , payments for the support of children of supplemental security income recipients under s. 49.775 , and health care benefits under the Badger Care health care program under s. 49.665 and to conduct activities to reduce payment errors in the Medical Assistance program under subch. IV , the food stamp program under 7 USC 2011 to 2036 , the supplemental security income payments program under s. 49.77 , the program providing payments for the support of children of supplemental security income recipients under s. 49.775 , and the Badger Care health care program under s. 49.665 , as provided in this section.