JFC Removes Qui Tam Provision from Gov. Evers Budget

Posted on by Hamilton

In its first executive session on the 2019-21 state budget on May 9, the Wisconsin Legislature’s Joint Finance Committee voted to remove a provision of Gov. Tony Evers’s budget that would have restored a private individual’s ability to bring a qui tam claim against a person who makes a false claim against the state.

Gov. Evers’ budget bill would have reinstated the qui tam law, not just for alleged Medicaid fraud, but for all state agencies. This policy provides an incentive for plaintiff attorneys to sue medical providers, pharmaceutical companies, and any other business contracting with the state, for alleged fraud. The proposal would allow the whistleblower and his or her plaintiff attorney to seek up to 30 percent of all of the damages, along with attorney’s fees and costs.

WCJC actively lobbied against the qui tam provision and were successful in convincing the Joint Finance Committee to remove the provision. WCJC met with key committee members and submitted a memo explaining why the law is unnecessary and would only benefit plaintiff attorneys.

At the May 9 executive session, the Joint Finance Committee also removed Gov. Evers’s proposal to repeal of provisions of extraordinary session legislation 2017 Act 369 including:

  • The requirement that the legislature approve certain settlements and legal actions by the attorney general.
  • The ability of the legislature to intervene in lawsuits involving the state.
  • The ability of the legislature to obtain outside legal counsel.
  • The definition and public transparency requirements for agency guidance documents.
  • The requirement that agencies cite statutes supporting any interpretation of law they publicly provide.
  • The ability of the Joint Committee for Review on Administrative Rules to suspend rules multiple times.

Altogether, the Joint Finance Committee removed a total of 131 policy items that had been proposed by the governor.

The Joint Finance Committee will continue voting on various agency budgets throughout May before sending their amended budget to the full legislature for approval.