Wisconsin 2023-2024 Regular Session

Wisconsin Assembly Bill AB475 Compare Versions

Only one version of the bill is available at this time.

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1	1	LRB-0244/1
2	2	MIM:amn
3	3	2023 - 2024 LEGISLATURE
4	4	2023 ASSEMBLY BILL 475
5	5	October 11, 2023 - Introduced by Representatives SINICKI, C. ANDERSON, J.
6	6	ANDERSON, ANDRACA, BALDEH, BARE, BILLINGS, CABRERA, CLANCY, CONLEY,
7	7	CONSIDINE, DOYLE, DRAKE, EMERSON, GOYKE, HAYWOOD, HONG, JACOBSON,
8	8	JOERS, MADISON, MCGUIRE, MOORE OMOKUNDE, MYERS, NEUBAUER, OHNSTAD,
9	9	ORTIZ-VELEZ, PALMERI, RATCLIFF, RIEMER, SHANKLAND, SHELTON, SNODGRASS,
10	10	STUBBS, SUBECK and VINING, cosponsored by Senators WIRCH, AGARD,
11	11	CARPENTER, HESSELBEIN, L. JOHNSON, LARSON, ROYS, SMITH, SPREITZER and
12	12	TAYLOR. Referred to Committee on Labor and Integrated Employment.
13	13	*AUTHORS SUBJECT TO CHANGE*
14	14	AN ACT to amend 102.125 (2) and 102.125 (3); and to create 102.125 (1m) and
15	15	943.395 (1) (e) of the statutes; relating to: worker misclassification and
16	16	providing a penalty.
17	17	Analysis by the Legislative Reference Bureau
18	18	Under current law, if an insurer or self-insured employer has evidence that a
19	19	worker's compensation claim is false or fraudulent, the insurer or self-insured
20	20	employer must generally report the claim to the Department of W orkforce
21	21	Development. If, based on the investigation, DWD has a reasonable basis to believe
22	22	that criminal insurance fraud has occurred, DWD must refer the matter to the
23	23	district attorney for prosecution. Also under current law, DWD may request
24	24	assistance from the Department of Justice to investigate false or fraudulent activity
25	25	related to a worker's compensation claim. If, based on that investigation, DWD has
26	26	a reasonable basis to believe that theft, forgery, fraud, or any other criminal violation
27	27	has occurred, DWD must refer the matter to the district attorney or DOJ for
28	28	prosecution. The bill extends these requirements to insurers who have evidence that
29	29	an application for worker's compensation insurance coverage is fraudulent or that
30	30	an employer has committed fraud by misclassifying employees to lower the
31	31	employer's worker's compensation insurance premiums.
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34	34	3 - 2 -2023 - 2024 Legislature LRB-0244/1
35	35	MIM:amn
36	36	ASSEMBLY BILL 475
37	37	Because this bill creates a new crime or revises a penalty for an existing crime,
38	38	the Joint Review Committee on Criminal Penalties may be requested to prepare a
39	39	report.
40	40	The people of the state of Wisconsin, represented in senate and assembly, do
41	41	enact as follows:
42	42	SECTION 1. 102.125 (1m) of the statutes is created to read:
43	43	102.125 (1m) APPLICATION AND PREMIUM FRAUD. If an insurer has evidence that
44	44	an application for worker's compensation insurance coverage is fraudulent or that
45	45	an employer has committed fraud by misclassifying employees to lower the
46	46	employer's worker's compensation insurance premiums in violation of s. 943.395, the
47	47	insurer shall report the claim to the department. The department may require an
48	48	insurer to investigate an allegedly fraudulent application or alleged fraud by
49	49	misclassification of employees and may provide the insurer with any records of the
50	50	department relating to that alleged fraud. An insurer that investigates alleged fraud
51	51	under this subsection shall report the results of that investigation to the department.
52	52	SECTION 2. 102.125 (2) of the statutes is amended to read:
53	53	102.125 (2) ASSISTANCE BY DEPARTMENT OF JUSTICE. The department of workforce
54	54	development may request the department of justice to assist the department of
55	55	workforce development in an investigation under sub. (1) or (1m) or in the
56	56	investigation of any other suspected fraudulent activity on the part of an employer,
57	57	employee, insurer, health care provider, or other person related to worker's
58	58	compensation.
59	59	SECTION 3. 102.125 (3) of the statutes is amended to read:
60	60	102.125 (3) PROSECUTION. If based on an investigation under sub. (1), (1m), or
61	61	(2) the department has a reasonable basis to believe that a violation of s. 943.20,
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81	81	20 - 3 -2023 - 2024 Legislature
82	82	LRB-0244/1
83	83	MIM:amn
84	84	SECTION 3
85	85	ASSEMBLY BILL 475
86	86	943.38, 943.39, 943.392, 943.395, 943.40, or any other criminal law has occurred, the
87	87	department shall refer the results of the investigation to the department of justice
88	88	or to the district attorney of the county in which the alleged violation occurred for
89	89	prosecution.
90	90	SECTION 4. 943.395 (1) (e) of the statutes is created to read:
91	91	943.395 (1) (e) Presents an application for worker's compensation insurance
92	92	coverage that is false or fraudulent or that falsely or fraudulently misclassifies
93	93	employees to lower worker's compensation insurance premiums.
94	94	(END)
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