LRB-0179/2
RPN:skg:ch
1995 - 1996 LEGISLATURE
April 28, 1995 - Introduced by Representatives Krusick, Ainsworth, Baldus,
Carpenter, Grobschmidt, Hahn, F. Lasee, Musser, Notestein, Porter, Urban,
Walker, Ward and
Wilder, cosponsored by Senators Schultz, Burke,
Darling, C. Potter and
Rude. Referred to Committee on Ways and Means.
AB342,1,7
1An Act to renumber 71.93 (2);
to amend 20.566 (1) (h), 71.78 (4) (g), 71.78 (9),
271.88 (1) (a), 71.93 (title), 71.93 (1) (b), 71.93 (3), 71.93 (4), 71.93 (5), 71.93 (6),
371.93 (7), 71.93 (8) and 800.09 (1) (intro.); and
to create 71.93 (1) (a) 4., 71.93
4(1) (cm), 71.93 (2) (b), 345.47 (1) (e), 345.47 (1d), 800.09 (1) (d) and 800.09 (1m)
5of the statutes;
relating to: allowing the department of revenue to offset
6unpaid judgments for traffic and municipal ordinance violations against state
7income tax refunds and making appropriations.
Analysis by the Legislative Reference Bureau
Under this bill, if a defendant fails to pay a judgment in a forfeiture action for
a traffic violation or for a municipal ordinance violation, a court may, in addition to
or in lieu of other remedies available to it, order the unpaid judgment certified for
setoff. If a court orders certification, the county, city, village or town that is entitled
to the forfeiture portion of the judgment shall certify the unpaid judgment to the
department of revenue (DOR) for setoff. The county, city, village or town is required
to submit an administration fee of $10 for each judgment certified. The
administration expenses that DOR may charge against a political subdivision are
reduced by this $10 fee.
Upon receipt of a certification, DOR shall set off (reduce) any state income tax
refund or credit owed to the defendant by the amount certified and forward the
money withheld to the county, city, village or town certifying the judgment.
Under current law, DOR is authorized to set off tax refunds and credits to
recover unpaid state taxes, debts owed to state agencies and delinquent child support
and maintenance payments.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB342, s. 1
1Section
1. 20.566 (1) (h) of the statutes is amended to read:
AB342,2,52
20.566
(1) (h)
Debt collection. From moneys received from the collection of
3debts
owed to state agencies under ss. 71.93 and 565.30 (5), the amounts in the
4schedule to pay the administrative expenses of the department of revenue for the
5collection of those debts.
AB342, s. 2
6Section
2. 71.78 (4) (g) of the statutes is amended to read:
AB342,2,127
71.78
(4) (g) Employes of this state, to the extent that the department of
8revenue deems the examination necessary for the employes to perform their duties
9under contracts or agreements between the department and any other department,
10division, bureau, board or commission of this state relating to the administration of
11tax laws
, collection of debts under s. 71.93 or child and spousal support enforcement
12under s. 46.25.
AB342, s. 3
13Section
3. 71.78 (9) of the statutes is amended to read:
AB342,2,1614
71.78
(9) (title)
Disclosure of debtor address to state agency. The
15department of revenue may supply the address of a debtor to
an a state agency
or a
16political subdivision certifying a debt of that debtor
for setoff under s. 71.93.
AB342, s. 4
17Section
4. 71.88 (1) (a) of the statutes is amended to read:
AB342,3,518
71.88
(1) (a)
Contested assessments and claims for refund. Except for refunds
19set off certified for setoff under s. 71.93 in respect to which appeal is to the
state 20agency to which the debt is owed and except for refunds
set off certified for setoff 21under s. 46.255
, 345.47 (1d) or 800.09 (1m) in respect to which a hearing
is may be
1held before
the circuit a court, any person feeling aggrieved by a notice of additional
2assessment, refund, or notice of denial of refund may, within 60 days after receipt of
3the notice, petition the department of revenue for redetermination. A petition or an
4appeal by one spouse is a petition or an appeal by both spouses. The department shall
5make a redetermination on the petition within 6 months after it is filed.
AB342, s. 5
6Section
5. 71.93 (title) of the statutes is amended to read:
AB342,3,7
771.93 (title)
Setoffs for other state agencies.
AB342, s. 6
8Section
6. 71.93 (1) (a) 4. of the statutes is created to read:
AB342,3,109
71.93
(1) (a) 4. An unpaid judgment certified by a political subdivision under
10s. 345.47 (1d) or 800.09 (1m).
AB342, s. 7
11Section
7. 71.93 (1) (b) of the statutes is amended to read:
AB342,3,1412
71.93
(1) (b) "Debtor" means
any
a person owing a debt
to a state agency and
13any person who owes a delinquent child support or spousal support obligation to an
14agency of another state.
AB342, s. 8
15Section
8. 71.93 (1) (cm) of the statutes is created to read:
AB342,3,1616
71.93
(1) (cm) "Political subdivision" means a county, city, village or town.
AB342, s. 9
17Section
9. 71.93 (2) of the statutes is renumbered 71.93 (2) (a).
AB342, s. 10
18Section
10. 71.93 (2) (b) of the statutes is created to read:
AB342,3,2019
71.93
(2) (b) A political subdivision may certify a debt under s. 345.47 (1d) or
20800.09 (1m).
AB342, s. 11
21Section
11. 71.93 (3) of the statutes is amended to read:
AB342,4,922
71.93
(3) Administration. In administering this section the department shall
23first check with the state agency
or political subdivision certifying the debt to
24determine whether the debt has been collected by other means. If the debt remains
25uncollected the department of revenue shall
setoff
set off any debt or other amount
1owed to the department, regardless of the origin of the debt or of the amount, its
2nature or its date. If after the setoff there remains a refund in excess of $10, the
3department shall set off the remaining refund against certified debts of other state
4agencies
or political subdivisions. If more than one certified debt exists for any
5debtor, the refund shall be first set off against the earliest debt certified, except that
6no child support or spousal support obligation submitted by an agency of another
7state may be set off until all debts owed to and certified by state agencies
or political
8subdivisions of this state have been set off. When all debts have been satisfied, any
9remaining refund shall be refunded to the debtor by the department.
AB342, s. 12
10Section
12. 71.93 (4) of the statutes is amended to read:
AB342,4,1511
71.93
(4) Settlement. Within 30 days after the close of each calendar quarter,
12the department shall settle with each state agency
or political subdivision that has
13certified a debt. Each settlement shall note the opening balance of debts certified,
14any additions or deletions, amounts set off and the ending balance at the close of the
15settlement period.
AB342, s. 13
16Section
13. 71.93 (5) of the statutes is amended to read:
AB342,5,217
71.93
(5) (title)
State Agency Certifier charged for costs. At the time of each
18settlement, each state agency shall be charged for administration expenses, and the
19amounts charged shall be credited to the department's appropriation under s. 20.566
20(1) (h).
At the time of each settlement, each political subdivision shall be charged for
21administration expenses, minus the $10 fee submitted by the political subdivision
22with the certified debt. The $10 fee plus the additional administration expenses
23charged shall be credited to the appropriation under s. 20.566 (1) (h). Annually on
24or before November 1, the department shall review its costs incurred during the
1previous fiscal year in administering
state agency setoffs and shall adjust its
2subsequent charges to
each state agency to reflect that experience.
AB342, s. 14
3Section
14. 71.93 (6) of the statutes is amended to read:
AB342,5,134
71.93
(6) Written agreement and authority of department. Any state agency
5or political subdivision wishing to certify debts to the department shall enter into a
6written agreement with the department prior to any certification
of debt. Any
7certification of debts
by a state agency or changes to certified debts shall be in a
8manner and form prescribed by the department. The secretary of revenue shall be
9the final authority in the resolution of any interagency
disputes in regard to dispute
10regarding certification of
debts a debt or any dispute between the department and
11a political subdivision regarding certification of a debt. If a refund is adjusted after
12a setoff, the department may readjust any erroneous settlement with a
certifying
13state agency certifier.
AB342, s. 15
14Section
15. 71.93 (7) of the statutes is amended to read:
AB342,5,2015
71.93
(7) Exchange of information. Information relative to changes to any
16debt
certified shall be exchanged promptly by
each a state agency
and or a political
17subdivision and the department. The exchange of information related to changes in
18debt, the department setoff of refunds against debts
certified by agencies and any
19reports of the setoff to
certifying state agencies
certifiers is not a violation of ss. 71.78,
2072.06, 77.61 (5), 78.80 (3) and 139.38 (6).
AB342, s. 16
21Section
16. 71.93 (8) of the statutes is amended to read:
AB342,6,222
71.93
(8) (title)
Setoff agreements. Upon request by a state agency
or political
23subdivision, the department of revenue may enter into an agreement with
24individuals who owe debts
to the state agency. With the consent of the debtor, the
1department of revenue may arrange with the debtor's employer for the withholding
2from the debtor's pay of a specified amount to be applied against the debt.
AB342, s. 17
3Section
17. 345.47 (1) (e) of the statutes is created to read:
AB342,6,64
345.47
(1) (e) In addition to or in lieu of imprisonment under par. (a) or
5suspension under par. (b), the court may order the unpaid judgment certified for
6setoff under sub. (1d).
AB342, s. 18
7Section
18. 345.47 (1d) of the statutes is created to read:
AB342,6,98
345.47
(1d) (a) In this subsection, "political subdivision" has the meaning given
9in s. 71.93 (1) (cm).
AB342,6,1410
(b) If a court orders an unpaid judgment certified for setoff under sub. (1) (e),
11the political subdivision entitled to the forfeiture portion of the judgment shall certify
12the unpaid judgment to the department of revenue. At the time of certification, the
13political subdivision shall submit a $10 fee and furnish the defendant's full name,
14address and social security number to the department of revenue.
AB342,7,315
(c) Receipt of a certification and $10 fee by the department of revenue shall
16constitute a lien, equal to the amount certified, on any state tax refunds or credits
17owed to the defendant. The lien shall be foreclosed by the department of revenue as
18a setoff under s. 71.93. When the department of revenue determines that the
19defendant is otherwise entitled to a state tax refund or credit, it shall notify the
20defendant that the state intends to reduce any state tax refund or credit due the
21defendant by the amount certified and that the department intends to forward that
22amount to the political subdivision certifying the judgment. The notice shall provide
23that within 20 days after the date the notice is mailed, the defendant may request
24a hearing before the court rendering the judgment. Within 10 days after receiving
25a request for hearing under this paragraph, the court shall set the matter for hearing
1upon notice to the defendant and to the political subdivision certifying the judgment.
2The sole issue at that hearing shall be whether the defendant owes the amount
3certified.
AB342,7,54
(d) Except as provided by court order after a hearing under par. (c), all of the
5following shall occur: