Amendment ASA1-AB740

LRBs0382/1

PJK:jlg:km

1999 - 2000 LEGISLATURE

ASSEMBLY SUBSTITUTE AMENDMENT 1, TO 1999 ASSEMBLY BILL 740

March 14, 2000 - Offered by Committee on Family Law.

AB740-ASA1,1,5 An Act to amend 565.30 (5m) (a), 767.261 (intro.), 767.265 (1), 767.30 (1), 767.305, 767.32 (1) (a) and 802.12 (3) (c) 2.; and to create 767.10 (2) (c), 767.10 (2) (d), 767.2605 and 767.32 (1) (ar) of the statutes; relating to: awarding or revising maintenance payments on the basis of debt discharge in bankruptcy and approving stipulations waiving maintenance.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB740-ASA1, s. 1 Section 1. 565.30 (5m) (a) of the statutes, as affected by 1999 Wisconsin Act 9, section 3025pa, is amended to read:

AB740-ASA1,2,8 565.30 (5m) (a) The administrator shall report to the department of workforce development the name, address and social security number of each winner of a lottery prize that is payable in instalments and the name, address and social security number or federal income tax number of the person who has been assigned a lottery prize that is payable in instalments. Upon receipt of the report, the department of workforce development shall certify to the administrator whether any payee or assignee named in the report is obligated to provide child support, spousal support, maintenance or family support under s. 767.02 (1) (f) or (g), 767.10, 767.23, 767.25, 767.26, 767.2605, 767.261, 767.458 (3), 767.465 (2m), 767.477, 767.51 (3), 767.62 (4) or 948.22 (7) or ch. 769 and the amount required to be withheld from the lottery prize under s. 767.265. Subject to par. (b), the administrator shall withhold the certified amount from each payment made to the winner or assignee and remit the certified amount to the department of workforce development.

AB740-ASA1, s. 2 Section 2. 767.10 (2) (c) of the statutes is created to read:

AB740-ASA1,2,15 767.10 (2) (c) A court may not approve a stipulation that waives maintenance payments for either party unless the stipulation contains a statement by the party waiving maintenance that he or she understands that, if the court approves the waiver of maintenance payments, the court will not award maintenance payments to the party under s. 767.26 or 767.2605 or revise or alter a judgment or order with respect to maintenance payments to the party under s. 767.32.

AB740-ASA1, s. 3 Section 3. 767.10 (2) (d) of the statutes is created to read:

AB740-ASA1,2,18 767.10 (2) (d) A court shall approve a stipulation that conditionally waives maintenance payments for either party if all of the following apply:

AB740-ASA1,2,21 1. The court assigns to the other party under s. 767.255 responsibility for the repayment of any debt for which the party conditionally waiving maintenance has liability or property that is available under s. 766.55 to satisfy the debt.

AB740-ASA1,2,23 2. The waiver of maintenance is based on the condition that the party assigned a debt specified in subd. 1. does not secure a discharge in bankruptcy of the debt.

AB740-ASA1,3,7 3. The stipulation contains a statement by the party conditionally waiving maintenance that he or she understands that, if the court approves the conditional waiver of maintenance payments, the court will not award maintenance payments to the party under s. 767.26, the court will not award maintenance payments to the party under s. 767.2605 unless the other party secures a discharge in bankruptcy of a debt specified in subd. 1. for which the party conditionally waiving maintenance is held liable, and the court will not revise or alter a judgment or order with respect to maintenance payments to the party under s. 767.32 unless the court awards maintenance payments to the party under s. 767.2605.

AB740-ASA1, s. 4 Section 4. 767.2605 of the statutes is created to read:

AB740-ASA1,3,12 767.2605 Awarding maintenance after final judgment. After judgment has been granted in an action for annulment, divorce or legal separation, the court may award maintenance payments to a party, upon the petition, motion or order to show cause of the party, if all of the following apply:

AB740-ASA1,3,14 (1) The party seeking maintenance under this section conditionally waived maintenance under s. 767.10 (2) (d).

AB740-ASA1,3,15 (2) The party seeking maintenance under this section has not remarried.

AB740-ASA1,3,19 (3) The party from whom maintenance is sought under this section has secured a discharge in bankruptcy of a debt that was assigned to that party in a property division under s. 767.255 and for which the party seeking maintenance has been held liable.

AB740-ASA1, s. 5 Section 5. 767.261 (intro.) of the statutes, as affected by 1999 Wisconsin Act 9, is amended to read:

AB740-ASA1,4,8 767.261 Family support. (intro.) The court may make a financial order designated "family support" as a substitute for child support orders under s. 767.25 and maintenance payment orders under s. 767.26 or 767.2605. A party ordered to pay family support under this section shall pay simple interest at the rate of 1% per month on any amount in arrears that is equal to or greater than the amount of child support due in one month. If the party no longer has a current obligation to pay child support, interest at the rate of 1% per month shall accrue on the total amount of child support in arrears, if any. Interest under this section is in lieu of interest computed under s. 807.01 (4), 814.04 (4) or 815.05 (8) and is paid to the department or its designee under s. 767.29. Except as provided in s. 767.29 (1m), the department or its designee, whichever is appropriate, shall apply all payments received for family support as follows:

AB740-ASA1, s. 6 Section 6. 767.265 (1) of the statutes, as affected by 1999 Wisconsin Act 9, section 3055c, is amended to read:

AB740-ASA1,5,2 767.265 (1) Each order for child support under this chapter, for maintenance payments under s. 767.23 or, 767.26 or 767.2605, for family support under this chapter, for costs ordered under s. 767.51 (3) or 767.62 (4), for support by a spouse under s. 767.02 (1) (f), for maintenance payments under s. 767.02 (1) (g) or for the annual receiving and disbursing fee under s. 767.29 (1) (d), each order for a revision in a judgment or order with respect to child support, maintenance or family support payments under s. 767.32, each stipulation approved by the court or the family court commissioner for child support under this chapter and each order for child or spousal support entered under s. 948.22 (7) constitutes an assignment of all commissions, earnings, salaries, wages, pension benefits, benefits under ch. 102 or 108, lottery prizes that are payable in instalments and other money due or to be due in the future to the department or its designee. The assignment shall be for an amount sufficient to ensure payment under the order or stipulation and to pay any arrearages due at a periodic rate not to exceed 50% of the amount of support due under the order or stipulation so long as the addition of the amount toward arrearages does not leave the party at an income below the poverty line established under 42 USC 9902 (2).

AB740-ASA1, s. 7 Section 7. 767.30 (1) of the statutes is amended to read:

AB740-ASA1,5,12 767.30 (1) If the court orders any payment for support under s. 48.355 (2) (b) 4., 48.357 (5m), 48.363 (2), 938.183 (4), 938.355 (2) (b) 4., 938.357 (5m) or 938.363 (2), support or maintenance under s. 767.08, child support, family support or maintenance under s. 767.23, child support under s. 767.25, maintenance under s. 767.26 or 767.2605, family support under s. 767.261, attorney fees under s. 767.262, child support or a child's health care expenses under s. 767.477, paternity obligations under s. 767.458 (3), 767.51 or 767.62 (4), support arrearages under s. 767.293 or child or spousal support under s. 948.22 (7), the court may provide that any payment be paid in the amounts and at the times that it considers expedient.

AB740-ASA1, s. 8 Section 8. 767.305 of the statutes is amended to read:

AB740-ASA1,5,24 767.305 Enforcement; contempt proceedings. In all cases where a party has incurred a financial obligation under s. 48.355 (2) (b) 4., 48.357 (5m), 48.363 (2), 767.23, 767.25, 767.255, 767.26, 767.2605, 767.261, 767.262, 767.293, 767.458 (3), 767.477, 767.51, 767.62 (4), 938.183 (4), 938.355 (2) (b) 4., 938.357 (5m) or 938.363 (2) and has failed within a reasonable time or as ordered by the court to satisfy such obligation, and where the wage assignment proceeding under s. 767.265 and the account transfer under s. 767.267 are inapplicable, impractical or unfeasible, the court may on its own initiative, and shall on the application of the receiving party, issue an order requiring the payer to show cause at some reasonable time therein specified why he or she should not be punished for such misconduct as provided in ch. 785.

AB740-ASA1, s. 9 Section 9. 767.32 (1) (a) of the statutes is amended to read:

AB740-ASA1,6,21 767.32 (1) (a) After a judgment or order providing for child support under this chapter or s. 48.355 (2) (b) 4., 48.357 (5m), 48.363 (2), 938.183 (4), 938.355 (2) (b) 4., 938.357 (5m), 938.363 (2) or 948.22 (7), maintenance payments under s. 767.26 or 767.2605 or family support payments under this chapter, or for the appointment of trustees under s. 767.31, the court may, from time to time, on the petition, motion or order to show cause of either of the parties, or upon the petition, motion or order to show cause of the department, a county department under s. 46.215, 46.22 or 46.23 or a county child support agency under s. 59.53 (5) if an assignment has been made under s. 46.261, 48.57 (3m) (b) 2. or (3n) (b) 2., 49.19 (4) (h) or 49.45 (19) or if either party or their minor children receive aid under s. 48.57 (3m) or (3n) or ch. 49, and upon notice to the family court commissioner, revise and alter such judgment or order respecting the amount of such maintenance or child support and the payment thereof, and also respecting the appropriation and payment of the principal and income of the property so held in trust, and may make any judgment or order respecting any of the matters that such court might have made in the original action, except that a judgment or order that waives maintenance payments for either party shall not thereafter be revised or altered under this section in that respect nor shall the provisions of a judgment or order with respect to final division of property be subject to revision or modification. A revision, under this section, of a judgment or order with respect to an amount of child or family support may be made only upon a finding of a substantial change in circumstances. In

AB740-ASA1,7,2 (am) Subject to par. (a), in any action under this section to revise a judgment or order with respect to maintenance payments, a substantial change in the cost of living by either party or as measured by the federal bureau of labor statistics may be sufficient to justify a revision of judgment or order with respect to the amount of maintenance, except that a change in an obligor's cost of living is not in itself sufficient if payments are expressed as a percentage of income.

AB740-ASA1, s. 10 Section 10. 767.32 (1) (ar) of the statutes is created to read:

AB740-ASA1,7,9 767.32 (1) (ar) Subject to par. (a), in any action under this section to revise a judgment or order with respect to maintenance payments, a discharge in bankruptcy of a debt that was assigned to a party under s. 767.255, and for which the other party has been held liable, is sufficient to justify a revision of the judgment or order with respect to the amount of maintenance payments that are received or paid by the party to whom the debt was assigned.

AB740-ASA1, s. 11 Section 11. 802.12 (3) (c) 2. of the statutes is amended to read:

AB740-ASA1,7,11 802.12 (3) (c) 2. Maintenance under s. 767.26 or 767.2605.

AB740-ASA1, s. 12 Section 12. Initial applicability.

AB740-ASA1,7,15 (1) The treatment of sections 767.10 (2) (c) and (d) and 767.2605 of the statutes first applies to stipulations that are approved by a court on the effective date of this subsection.

AB740-ASA1,7,17 (2) The treatment of section section 767.32 (1) (ar) of the statutes first applies to debts that are discharged in bankruptcy on the effective date of this subsection.

AB740-ASA1, s. 13 Section 13. Effective date.

AB740-ASA1,7,20 (1) This act takes effect on the first day of the 6th month beginning after publication.

AB740-ASA1,7,21 (End)