Category: Legislation

Governor Signs 2021-23 State Budget With 50 Partial Vetoes

On Thursday, July 8, Governor Tony Evers (D) signed into law 2021 Act 58, the state budget for the 2021-2023 fiscal biennium, which began July 1. The Wisconsin Assembly approved the budget bill (Assembly Bill 68) on June 29, with the Senate concurring in the bill the following day. The two-year budget, assembled by the Republican-led Joint Finance Committee (JFC), spends $87.5 billion and cuts income and property taxes by $3.4 billion.

State Budget Update: Wisconsin Civil Justice Council Notches a Major Win

On May 6, the Legislature took steps to overhaul the budget put forward by Gov. Evers, which included a two-year operating budget of more than $90 billion and a long list of changes to various state laws and programs. Voting 12-4 along party lines, the Republican-led Joint Committee on Finance (JCF) approved an omnibus motion to strip more than 380 items from the budget, including the civil justice policies of concern to WCJC and our members.

Wisconsin Civil Justice Council, Business Coalition Call for Additional Liability Protections to Help Reopen and Restart the Wisconsin Economy

Wisconsin Civil Justice Council (WCJC) and a coalition of 40 Wisconsin businesses and chambers of commerce are calling for the Legislature to enact civil liability protections to help Wisconsin businesses as the state begins to reopen the economy. The Wall Street Journal recently editorialized calling for quick action, noting plaintiff attorneys are already targeting reopening businesses.

In the Legislature’s first COVID-19 bill (2019 Act 185), WCJC worked with legislators to enact protections for health care workers and to take good first steps in protecting manufacturers, sellers and distributors of medical equipment to fight COVID-19. Now, WCJC is calling for additional protections for those manufacturing, selling and distributing medical equipment, as well as protections for employers seeking to keep their employees and customers safe and for persons rendering aid.

WCJC sent this memo to the Legislature last week outlining details of these civil liability protection measures. Wisconsin Manufacturers & Commerce, on behalf of 40 trade associations and chambers of commerce including WCJC and National Federation of Independent Business – Wisconsin, also sent a similar letter to the Legislature. The goal is to enact measures to protect Wisconsin businesses and their employees from being sued, for example, by a plaintiff alleging contracting COVID-19 at the place of business though the plaintiff never actually got sick. WCJC stands ready to work with legislators and the rest of the Wisconsin business community on these important reforms.

The wave of COVID-19 related lawsuits is already starting, as plaintiff attorneys file frivolous lawsuits against hand sanitizer manufacturers, health care providers and hospitals, and other essential businesses. These lawsuits will seriously undermine efforts to restart and rebuild the Wisconsin economy, so it is vitally important that Wisconsin has appropriate liability protections for employers and their workers from the very real threat of frivolous lawsuits related to COVID-19.

Gov. Evers Signs Legislation with COVID-19 Liability Protections

On April 15, Gov. Tony Evers signed into law legislation on COVID-19 that included liability protections for health care workers and a limited liability provision for manufacturers. The bill was sent to the governor after passing on a bipartisan basis in both the Senate and Assembly.

The bill (AB 1038, now 2019 Wisconsin Act 185) includes provisions to: 

  1. Exempt manufacturers, distributors and sellers of emergency medical supplies and equipment that donate or sell their product from civil liability. Entities would be exempt from civil liability only if the product were sold or donated at a price that does not exceed the cost of production.
  2. Create liability protections for health care professionals acting to address the COVID-19 pandemic during the public health emergency. To be immune from liability, actions must be in good faith or be consistent with state or federal guidance related to the public health emergency.

WCJC worked with the Legislature on including protections for healthcare providers and their employees. However, WCJC opposed the unnecessary limitations on the civil liability protections for manufacturers of PPE and COVID-19 treatment equipment. WCJC also encouraged the Legislature to enact civil liability protections for employers keeping their workers and workplaces safe and for persons rendering aid. Those provisions were not included in the final legislation. (WCJC memo on liability protections in Wisconsin COVID-19 legislation.)

WCJC is continuing to work with the Legislature, the Governor, and the Wisconsin business community on enacting these further liability protections for employers and manufacturers as the state begins to look at reopening the economy.

Assembly Passes COVID-19 Liability Protections

On April 14, the Wisconsin Assembly met in its first ever virtual session to pass legislation on COVID-19. The bill included liability protections for health care workers and a limited liability provision for manufacturers. The Senate is expected to pass the bill, also in virtual session, on Wednesday. With the Assembly passing the bill on a bipartisan basis, it is expected that Gov. Tony Evers will sign the bill into law.

The Assembly’s virtual session featured many members participating remotely via Skype, while the remaining legislators, including leadership, were present in the chamber and practicing social distancing.

As passed by the Assembly, the bill, SB 932/AB 1038, includes provisions to: 

  1. Exempt manufacturers, distributors and sellers of emergency medical supplies and equipment that donate or sell their product to be exempt from civil liability. Entities would be exempt from civil liability only if the product were sold or donated at a price that does not exceed the cost of production.
  2. Create liability protections for health care professionals acting to address the COVID-19 during the public health emergency. To be immune from liability, actions must be in good faith or be consistent with state or federal guidance related to the public health emergency.

WCJC worked with the Legislature on including protections for healthcare providers and their employees. However, WCJC opposed the unnecessary limitations on the civil liability limitations for manufacturers of PPE and COVID-19 treatment equipment. WCJC also encouraged the Legislature to enact civil liability protections for employers keeping their workers and workplaces safe and for persons rendering aid. Those provisions were not included in the final legislation. (WCJC memo on liability protections in Wisconsin COVID-19 legislation.)

Democrats offered several amendments to the bill, including one that would remove the provision providing immunity for health care providers acting in good faith in response to the public health emergency. That amendment was tabled on a party line vote with no discussion.

After voting on amendments, the bill passed 97-2, with Reps. Jonathan Brostoff (D-Milwaukee) and Marisabel Cabrera (D-Milwaukee) the only no votes.

PFAS Update: Current Status of Legislation, Rulemaking Continues

When the state Assembly’s legislative session wrapped up in February, WCJC closely monitored legislation to address PFAS in Wisconsin. With the Legislature’s attention on COVID-19 for now, PFAS bills have moved out of focus but could be revived when the state Senate reconvenes to take up the remaining bills from the regular legislative session. Meanwhile, the Wisconsin Department of Natural Resources (DNR) is continuing to work on rulemaking to set standards for PFAS in surface water, groundwater, and drinking water. 

PFAS (per- and polyfluoroalkyl substances) are man-made chemicals found in many everyday products, including nonstick pans, cleaning products, paints, and firefighting foam. The most extensively studied PFAS compounds are PFOA and PFOS, which have been phased out of domestic manufacturing over the past decade. Competing studies debate whether or not these chemicals have negative health effects and, if they do, at what level they are harmful.

  

Wisconsin Legislation

In the last Assembly regular floor period of the 2019-20 legislative session in February, the Assembly passed PFAS provisions as an amendment tacked on to SB 559 (an unrelated bill). The Assembly passed on a party-line vote language that:

  • Directs the University of Wisconsin System to perform a study and report to the Legislature on PFAS effects in the human body, drinking water and groundwater.
  • Directs DNR to test private wells and municipal water systems for PFOA and PFOS in places around the state that have detected PFAS, investigate PFAS in those areas, and provide clean drinking water to residents affected.
  • Directs DNR to recoup payments for testing, investigation, and clean water from responsible parties who have used firefighting foam containing PFAS.
  • Directs DNR to set lab certification standards.

The legislation now must be approved by the Senate, which was scheduled to meet in March but has postponed its final regular session date due to COVID-19.

The Assembly did not take up alternative legislation (AB 843 & AB 842) that would have given DNR extremely broad authority to establish and enforce various PFAS standards. A coalition of industry groups opposed those bills.

Other legislation on PFAS introduced this session included:

AB 323/SB 310 would prohibit the use of firefighting foams that contain intentionally added PFAS in training, unless the testing facility has appropriate containment and treatment measures. – Signed into law on Feb. 5 as Act 101

SB 774 & SB 775/AB 922 & AB 921, authored by Sen. Rob Cowles (R-Green Bay) and Rep. Joel Kitchens (R-Sturgeon Bay), would allow DNR to regulate PFAS and provide funding for residents and municipalities in targeted “PFAS management zones” that have water testing above 70 ppt. This bill would not set statewide standards for PFAS chemicals. – Senate Committee on Natural Resources & Energy held a public hearing on the bill on Feb. 7 but did not vote on the bill. With the Assembly adjourned for the regular session, the bill is likely dead.

SB 717/AB 792 provides $250,000 for the Department of Trade, Agriculture & Consumer Protection (DATCP) to administer, with DNR, a voluntary program to collect and store or dispose of firefighting foam containing PFAS. This bill was introduced by the Speaker’s Task Force on Water Quality– Passed the Assembly unanimously on Feb. 18. Senate Committee on Natural Resources & Energy voted unanimously to recommend passage on Feb. 5, but it is unclear if the Senate will take up the bill in its final floor session.

SB 302/AB 321, also known as the “CLEAR Act,” would circumvent current rulemaking processes and give DNR broad, unprecedented authority to regulate PFAS chemicals. – No action.

AB 952 would require DNR to determine whether a safer alternative exists for PFAS in food packaging. If DNR determines there is a safer alternative, no person can manufacture, sell or distribute food packaging containing PFAS. – No action.

 

DNR Rulemaking

The DNR Board voted on Jan. 22 to approve three scope statements under which DNR can regulate PFAS chemicals. (Read about the scope statements here.) Industry groups including WCJC had asked DNR to narrow the scope statements to regulate just PFOA and PFOS chemicals, but the Board-approved scope statements will still give DNR the ability to promulgate regulations on any chemicals in the broad “PFAS” class. Approval of the scope statements allows DNR to move forward with the rulemaking process.

DNR held its first Stakeholder Group meeting on all three proposed rules on Feb. 6. At the meeting, DNR gave an overview of the three scope statements and took public comments. At the next stakeholder meeting, held remotely via Zoom on March 23, DNR gave an update on the federal Environmental Protection Agency (EPA) process for setting standards for PFAS and DNR’s own timeline for setting state standards. DNR estimates that the formal comment period on the rules will take place in 2021 and rules will be finalized in 2022. DNR, along with the state Department of Health Services, also discussed their rationale for recommending a 20 ppt enforcement standard and 2 ppt preventive action limit for PFOA and PFOS combined. The recommended limits would be some of the lowest in the world.

DNR will continue to hold stakeholder meetings for each rule (surface water, groundwater, and drinking water) while drafting economic impact analyses. Under Wisconsin’s rulemaking statutes, DNR cannot continue rulemaking on a proposed rule with an economic impact analysis over $10 million without legislative approval. When economic impacts and rule text are finalized, DNR must hold a public hearing before sending the rules to the governor and legislature for approval.

WCJC is monitoring the rulemaking process to ensure the standards set are not overly burdensome as to cause unnecessary compliance costs and liability for Wisconsin businesses.

 

WisPAC State Agency Task Force

In accordance with Executive Order 40, issued by Gov. Tony Evers in August 2019, Wisconsin state agencies have convened the Wisconsin PFAS Action Council (WisPAC). The executive order directs the council to develop an action plan to address PFAS, due to the governor and legislature by July 1.

WisPAC has also convened two sub-advisory groups:

  1. Local Government group headed by
    -Lawrie Kobza, who represents Municipal Environmental Group (MEG) – Water Division.
    -Paul Kent, who represents MEG – Wastewater Division.
    -John Dickerson, Department of Revenue Division Administrator for State & Local Finance
  2. Citizens group, which includes industry and stakeholder groups, headed by
    -Lynn Morgan, who represents Waste Management
    -Ned Witte, an attorney from Milwaukee who has worked with DNR in their Brownfield Study Group and represents municipalities in environmental cleanup cases
    -A representative from the Department of Health Services

The sub-advisory groups have met twice so far to take recommendations from the public on what actions they will recommend for the WisPAC action plan. Ideas for the action plan will ultimately be categorized into four areas:

  1. Preventing future discharges
  2. Minimizing current exposure
  3. Addressing legacy exposure
  4. Education

Ideas discussed in the sub-groups so far have included PFAS bans, labeling requirements for products containing PFAS, risk communication and education to the public, developing best practices for water utilities, identifying responsible parties, and providing funding for cleanup by initiating investigations and settlements with industry using PFAS products.

The full WisPAC committee of state agency representatives met in January and February, where the leaders of the sub-advisory groups briefed WisPAC on ideas they heard in their listening sessions. Agency members of WisPAC then listed their own ideas for recommendations to potentially be included in the Action Plan due in July, such as finding funding mechanisms, increasing available testing and data, educating municipal water utilities and the public, prioritizing contamination areas of concern, incentivizing private businesses to clean up PFAS sites, setting strict PFAS standards, and evaluating a potential ban on PFAS products.

The remaining March and April meetings of the local government and citizens sub-advisory groups and the full WisPAC have been postponed due to COVID-19. It is not clear yet how the public health emergency will affect WisPAC’s July 1 deadline to get the action plan to the governor.

 

EPA Action

EPA announced at the end of February it will regulate PFAS. The decision to regulate is the beginning of a multiple-year period for EPA to determine and finalize a maximum contaminant level for PFAS in drinking water. EPA proposed regulatory determinations for both PFOA and PFOS.

EPA also recently issued a proposed rule that would exclude manufacturers of PFAS from providing proof of financial responsibility under the federal Superfund cleanup law.

Earlier this year, EPA added 160 PFAS chemicals to the Toxic Release Inventory (TRI). The TRI is a list of chemicals that EPA requires industry to gather data and report on. The new PFAS chemicals, including PFOA and PFOS, have been added to the list effective Jan. 1. The list was added to the TRI following the enactment of the 2020 National Defense Authorization Act (NDAA) in December.

While rulemaking is ongoing, EPA has issued a nonenforceable health advisory standard of 70 parts per trillion.

 

Read more about PFAS regulation in Wisconsin.

 

Gov. Evers Signs Bill to Create Certificates of Qualification for Employment for Ex-Offenders

Gov. Tony Evers has signed into law legislation (Act 123) that creates a Council on Offender Employment to issue certificates of qualification for employment (CQEs) to ex-offenders. The bill seeks to reduce recidivism by helping ex-offenders re-enter the workforce.

Under the legislation (AB 30), the certificates issued by the Council would qualify ex-offenders for certain types of employment or licensing for which they would otherwise be ineligible based upon specific penalties associated with their criminal record. For example, a CQE would allow an ex-offender to get an occupational license for which he or she would, but for the CQE, be ineligible.

The bill additionally provides some immunity from liability for employers who hire employees with CQEs. Wisconsin Civil Justice Council and Wisconsin Manufacturers & Commerce worked closely with the bill’s authors, Sen. Alberta Darling (R-River Hills) and Rep. Rob Hutton (R-Brookfield), on the immunity provision to ensure that employers are protected from frivolous lawsuits when they hire ex-offenders possessing a CQE.

Gov. Evers signed the bill on March 3, after it passed unanimously in the Assembly and Senate in February.

PFAS Update: AG Holds Listening Session in Marinette, Foam Bill Passes Committee

The Wisconsin Legislature and state agencies are continuing to address PFAS chemicals. Recently, Wisconsin Attorney General Josh Kaul held a listening session on PFAS in Marinette. Meanwhile, an Assembly Committee has passed a bill to address PFAS in firefighting foams.

PFAS (per- and polyfluoroalkyl substances) are man-made chemicals found in many everyday products, including nonstick pans, cleaning products, paints, and firefighting foam. The most extensively studied PFAS compounds are PFOA and PFOS, which have been phased out of domestic manufacturing over the past decade. Competing studies debate whether or not these chemicals have negative health effects and, if they do, at what level they are harmful.

 

AG Listening Session

AG Kaul travelled to Marinette for two public listening sessions on Dec. 18.

In the Marinette area, Tyco and parent company Johnson Controls International began investigating PFAS in groundwater from its PFAS-containing firefighting foams in 2017. The Wisconsin Department of Natural Resources (DNR) referred Tyco to the Department of Justice (DOJ) for civil prosecution in June 2019, alleging Johnson Controls failed to report the contamination when it first detected PFAS in 2013.

Johnson Controls/Tyco are currently working with DNR on developing a full remediation plan, but the company has already set aside $140 million to address the contamination, installed treatment systems, began removing PFAS in groundwater, and provided bottled water and treatment systems to affected residents.

At the listening session on Dec. 18, Kaul said he couldn’t comment on the ongoing Tyco investigation but noted that DOJ takes environmental cases like these very seriously. The AG focused the listening session on hearing from the public how PFAS contamination in the area has impacted them.

 

Wisconsin Legislation

The Assembly Committee on Environment voted on Dec. 11 to recommend passage of AB 323, which would prohibit the use of firefighting foams that contain intentionally added PFAS in training, unless the testing facility has appropriate containment and treatment measures. DNR would determine containment and treatment measures by rule. The Assembly Committee on Environment held a public hearing on the bill on Sept. 3.

The Senate Committee on Natural Resources & Energy has also scheduled an executive session to vote on the bill on Jan. 8. 

Authored by Rep. John Nygren (R-Marinette) & Sen. Rob Cowles (R-Green Bay), the bill passed the committee on a bipartisan 8-1 vote. Rep. Gary Hebl (D-Sun Prairie) voted no, arguing the legislation does not go far enough to address PFAS.

Supporters of the bill include American Chemistry Council, American Petroleum Institute, Wisconsin Manufacturers & Commerce, Wisconsin Paper Council, and Wisconsin Rural Water Association.

Meanwhile, Wisconsin Democrats have introduced a separate bill that would circumvent rulemaking processes and require DNR to establish and enforce PFAS standards by rule for drinking water, groundwater, surface water, air, solid waste, beds of navigable waters, and soil and sediment if DNR deems it harmful to human health or the environment. SB 302/AB 321, also known as the “CLEAR Act,” has not yet received a hearing.

Looking ahead, Assembly Speaker Robin Vos (R-Rochester) told the Wheeler Report in December that bills from the Speaker’s Task Force on Water Quality will be announced in January. This bill package could include measures to address PFAS chemicals.

Continue reading about PFAS regulation in Wisconsin.

 

Employment Cause of Action Bills Introduced in Wisconsin Legislature

This session, Wisconsin lawmakers have introduced several bills that would create new legal causes of action against employers and could be costly to Wisconsin businesses if enacted. Read below for descriptions and the status of each of the bills.

 

SB 40/AB 40 – Wage Claims

Sen. Bob Wirch (D-Somers) and Rep. Tod Ohnstad (D-Kenosha) have introduced legislation changing employee unpaid wage claim procedures. The bill allows employees to file wage claims with the Department of Workforce Development (DWD) or in circuit court not only on their own behalf, but also on behalf of any similarly situated workers. Additionally, the bill increases the statute of limitations for wage claims from two to four years.

The bill would significantly increase the punitive costs for employers who are found to owe employees wages. The bill would double the amount employers could be liable to pay in excess of the unpaid wages, up to 200 percent, plus attorney fees. DWD or a circuit court may also require the employer to pay 2 percent interest per month on the amount of wages due. DWD or a circuit court can also order the employer to pay a surcharge up to $1,000 that would go not to the employee but to DWD.

Also under the bill, employers with outstanding wage claims would not be eligible to renew their licenses.

Finally, the bill would require employers to provide a disclosure statement of terms of employment to all employees. If an employer fails to provide or comply with the written terms of employment, the employer would owe all damages, plus $50 per day, and attorney fees.

The bill has been referred to the Senate Committee on Labor & Regulatory Reform and the Assembly Committee on Labor & Integrated Employment. No public hearings have been held.

 

AB 116 – Abusive Work Environments

Rep. Sondy Pope (D-Mt. Horeb) has introduced legislation that would create a new cause of action outside of worker’s compensation for abusive work environments.

The bill provides an exception to the exclusive remedy of worker’s compensation when employees allege they have been subjected to an abusive work environment. Employees alleging injury from an abusive work environment may file an action in circuit court. Circuit courts may award prevailing employees relief from the employer including medical expenses, back pay, front pay, compensation for pain and suffering, compensation for emotional distress, punitive damages, and attorney fees.

Under the bill, “abusive conduct” means “conduct, including acts or omissions, by an employer or employee, that a reasonable person would find to be abusive based on the severity, nature, and frequency of the conduct.” “Abusive work environment” means “a work environment in which an employer or one or more of its employees, acting with intent to cause pain or distress to an employee, subjects that employee to abusive conduct that causes physical harm or psychological harm to that employee.”

The bill has been referred to the Assembly Committee on Labor & Integrated Employment. No public hearing has been held.

 

AB 265 – Employee Rights

Rep. Gary Hebl (D-Sun Prairie) has introduced legislation giving employees certain rights and causes of action against their employers. The bill includes:

  • Giving employees the right to request and receive work schedule changes. An employer must have a “bona fide reason” to deny requested schedule changes.
  • Requiring employers to notify service industry employees of schedule changes two weeks in advance.
  • If an employer cuts an employee’s shift after they report to work, requiring the employer to still pay some or all of the wages the employee would have earned.
  • Requiring employers to compensate employees one hour’s pay for on-call shifts.
  • Requiring employers to compensate employees one hour’s pay for working a split shift.

Employee complaints about violations of any of these requirements would be handled by DWD as employment discrimination claims. Employees could also bring actions in circuit court, regardless of whether they have filed an action with DWD. Employers would be liable for compensatory damages, attorney fees, liquidated damages up to 100 percent of compensatory damages, and/or forfeitures up to $1,000 per violation.

The bill has been referred to the Assembly Committee on Labor & Integrated Employment. No public hearing has been held.

 

SB 308/AB 319 – Gender-related Discrimination

Sen. Tim Carpenter (D-Milwaukee) and Rep. Mark Spreitzer (D-Beloit) have introduced legislation that would add gender identity or gender expression as a prohibited basis for employment discrimination under Wisconsin’s Fair Employment Law (Wis. Stat. Ch. 111 Subchapter II). Penalties for employment discrimination under current law include, back pay, reinstatement and/or compensation. Under current law, employees may file complaints with DWD, which are subject to judicial review. (LRB 286, discussed below seeks to change this employment discrimination complaint process and allow initial complaints in circuit court.)

The bill has been referred to the Senate Committee on Government Operations, Technology & Consumer Protection and the Assembly Committee on State Affairs. No public hearings have been held.

 

LRB 286 – Employment Discrimination

Last week, Sen. Dave Hansen (D-Green Bay) circulated a bill that would allow employees alleging employment discrimination to bring circuit court actions outside of the DWD administrative complaint process. As damages, a court may, like DWD, order back pay, reinstatement, and/or compensation. Additionally under the bill, defendants are required to pay punitive damages – including future economic losses for pain and suffering, emotional distress, mental anguish, loss of enjoyment of life, and other noneconomic damages – up to $300,000 depending on the size of the employer.

The bill is currently circulating for cosponsorship.

 

LRB 2692 – Employee Compensation

Sen. Hansen has also circulated a bill that prohibits employers from asking prospective employees about their prior compensation. Employers would also generally be prohibited from using information about prior compensation in the hiring decision making process. Employees would be able to file complaints about violations to DWD or in circuit court, with penalties identical to those in LRB 286.

The bill is currently circulating for cosponsorship.

 

Outside of the Legislature, Gov. Tony Evers has also created a Joint Enforcement Task Force on Worker Misclassification. Evers announced members of the task force on July 26.

Qui Tam Proposal Circulating in Wisconsin Legislature

A proposal is currently circulating in the Wisconsin Legislature that would restore a private individual’s ability to bring a qui tam claim on behalf of the government against a person who makes a false claim for Medicaid. WCJC helped repeal Wisconsin’s previous qui tam law in 2015 and will work hard to ensure that it is not enacted back into law.

 

Background on Qui Tam

Qui tam is a Latin term describing a legal action to collect a penalty through supplied information from the public. Under this legal doctrine, a private party called a “relator” may bring a whistleblower lawsuit against a party on the government’s behalf. The relator must first present the information to the government, which can decide to either pursue the case, or deny involvement and allow the plaintiff to bring the case on behalf of the state using a private plaintiff attorney.

In 2007, the Wisconsin Legislature enacted the previous qui tam law. In 2015, the law was repealed by the Legislature during the budget bill process.

 

Legislative Proposal

Rep. Lisa Subeck (D-Madison) is currently circulating a new proposal (LRB 957) to reinstate the previous qui tam law. The bill would allow private individuals to bring claims on their own behalf and on behalf of the state against persons making false claims for Medical Assistance. Under the bill, plaintiffs and their attorneys could seek up to 30 percent of all of the damages, along with attorney’s fees and costs.

There is little evidence qui tam laws accomplish the ostensible goal of detecting and recovering damages for Medicaid fraud. Instead, according to, the U.S. Chamber Institute for Legal Reform, in many instances the states with qui tam statutes may actually recover less from the average Medicaid fraud settlement than those states without, due to the state’s obligation to pay out a share of the settlement to the private party.

Restoring qui tam lawsuits in Wisconsin would simply provide an incentive for plaintiff attorneys to file costly lawsuits against medical providers, pharmaceutical companies, and any other business contracting with the state.

It’s also important to note that Wisconsin already has a law – Wis. Stat. § 49.49 – that grants the attorney general the authority to prosecute Medicaid fraud and recover damages on behalf of the state. All damages recovered under this law go to the State of Wisconsin and need not be paid out to a private party or plaintiff attorneys.

Earlier this session, Gov. Tony Evers proposed in his state budget recommendations reinstating the qui tam law, not just for alleged Medicaid fraud, but for all state agencies. 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.

WCJC plans to similarly oppose the newly circulated bill.