AB 412

Current law specifies that the Department of Children and Families (DCF) may

by rule establish policies and procedures permitting DCF to impose certain penalties

on a child care provider who provides care for children under the Wisconsin Works

child care subsidy program and who submits false, misleading, or irregular

information to DCF or who fails to comply with the terms of the program without

providing a satisfactory explanation for the failure to comply. The penalties that

DCF may impose include recouping or withholding payments from the child care

provider and imposing a forfeiture. This bill provides that if a child care provider is

a corporation or a limited liability company and is unable to satisfy a penalty imposed

by DCF, any officer, director, or employee of the corporation, or any member,

manager, or employee of the limited liability company, who holds at least 20 percent

of the ownership interest of the corporation or limited liability company and who has

control or supervision of or responsibility for operating the child care business may

be held personally liable. The bill provides that the personal liability of any officer,

director, member, manager, or employee is an independent obligation that survives

the dissolution, reorganization, bankruptcy, receivership, or analogous situation of

the corporation or limited liability company.