Amendment ASA2-AB651

AB651-ASA2,52,17 (b) Content of notice of intent. 1. The notice provided under par. (a) to the obligor, to owners of the property and to the register of deeds shall include all of the following:

AB651-ASA2,52,18 a. The name of the obligor and the amount of the support owed.

AB651-ASA2,52,20 b. A description of the real property against which the department intends to levy.

AB651-ASA2,52,22 c. A statement that the obligor may, within 20 business days after the date of the notice, request a hearing on the question of whether past-due support is owed.

AB651-ASA2,53,2 d. A statement that a person, other than the obligor, who holds the real property jointly with the obligor may request a hearing within 20 business days after the date of the notice, to protect the portion of the jointly held real property that is attributable to his or her net contributions to the jointly held real property.

AB651-ASA2,53,5 e. A statement that the hearing may be requested by submitting the request in writing and by mailing or delivering a copy of the request to the county child support agency.

AB651-ASA2,53,10 2. In addition to the information included under subd. 1. a. to c., the notice provided under par. (a) to a person having an interest of record in the real property shall include a request that the interest holder notify the department, within 10 business days after receiving the notice, of the amount and nature of the person's interest in the property.

AB651-ASA2,54,6 (c) Hearing. If a hearing is requested under par. (b) 1. c., the court or family court commissioner shall schedule a hearing within 10 business days after receiving the request under par. (b) 1. c. The hearing shall be limited to a review of whether the obligor owes the amount of support owed that is stated in the notice of intent under par. (b) and whether any alternative payment arrangement offered by the department or the county child support agency is reasonable. If the court or family court commissioner makes a written determination that an alternative payment arrangement offered by the department or county child support agency is not reasonable, the court or family court commissioner may order an alternative payment arrangement. If the court or family court commissioner orders an alternative payment arrangement, the court or family court commissioner shall order the department not to proceed with the levy. If the court or family court commissioner determines that the obligor does not owe support or owes less than the amount claimed by the department, the court shall order the department not to proceed with the levy or specify the amount that may be retained by the department after the sale of the seized property. If a family court commissioner conducts the hearing under this paragraph, the department or the obligor may, within 15 business days after the date that the family court commissioner makes his or her decision, request review of the decision by the court with jurisdiction over the action. The court reviewing the decision may order the department not to proceed with the levy of the property or may authorize the sale of the property by the department.

AB651-ASA2,54,20 (d) Final notice. Unless the department has been directed not to proceed with the levy in a hearing under par. (c) or unless the support owed and any levy fees and costs under sub. (11) have been paid, the department may send to the obligor a final notice of intent to seize and sell the property. The final notice may not be sent until 20 business days after the date of the notice of intent to levy under par. (a) or after any requested hearings under par. (c) have been completed. The final notice shall include a date by which the obligor must vacate the premises and a date on which the property will be sold, unless the obligor pays the support owed and any levy fees and costs under sub. (11). The date in the notice by which the obligor must vacate the premises must be at least 60 days after the date that the final notice is sent and the date of sale must be at least 90 days after the date that the final notice is sent. The department shall provide a copy of any final notice under this paragraph to the register of deeds in the county where the real property is located. A register of deeds receiving a final notice under this paragraph shall file the final notice.

AB651-ASA2,54,24 (e) Sale. The department may issue an execution on any real property seized under this subsection to enforce a lien contained in the statewide support lien docket. The execution shall be made in accordance with the provisions of ch. 815, except as follows:

AB651-ASA2,55,3 1. In issuing the execution pursuant to s. 815.05, the department, rather than the court, shall issue the execution and the execution need not be signed by the clerk of circuit court where the judgment is filed.

AB651-ASA2,55,5 2. The execution shall be made returnable to the department, rather than to the court.

AB651-ASA2,56,2 (7m) Jointly held property. A person, other than the obligor, who holds a joint interest in property levied against under this section may request a hearing, as provided in subs. (5) (d) 6m., (6) (b) 3m. or (7) (b) 1. d., to determine the proportion of the value of the property that is attributable to his or her net contribution to the property. If a hearing is requested under this subsection, the court or family court commissioner shall schedule a hearing within 10 days after receiving the request. The hearing shall be limited to determining the proportion of the value of the property that is attributable to the person's net contribution to the property. If more than one person requests a hearing under this subsection, or if the obligor requests a hearing under sub. (5) (f), (6) (c) or (7) (c), with respect to the same property, the court or family court commissioner may schedule the hearings together. The person requesting the hearing shall have the burden of proving his or her net contribution by clear and convincing evidence. If the court determines that a portion of the jointly held property is attributable to the contributions of the person, the court shall direct the department or the county child support agency to pay the person, from the net balance of the jointly held account or the net proceeds of the sale of the jointly held real or personal property, the proportion of the gross value of the account or real or personal property that is attributable to that person. If the family court commissioner conducts the hearing under this subsection, the person may, within 15 business days after the date that the family court commissioner makes his or her decision, request review of the decision by the court with jurisdiction over the action.

AB651-ASA2,56,9 (8) Duties to surrender; generally. Any person in possession of or obligated with respect to property or rights to property that is subject to levy under this section and upon which a levy has been made shall, upon demand of the department, surrender the property or rights or discharge the obligation to the department, except that part of the property or rights that is, at the time of the demand, subject to any prior attachment, execution under any judicial process, claim of ownership, lease or month-to-month tenancy.

AB651-ASA2,56,12 (9) Notice. Any notice required to be provided under this section may be provided by sending the notice by regular mail to the last-known address of the person to whom notice is to be sent.

AB651-ASA2,56,15 (11) Levy fees and costs. (a) Third parties. Any 3rd party is entitled to a levy fee of $5 for each levy in any case where property is secured through the levy. The 3rd party shall deduct the fee from the proceeds of the levy.

AB651-ASA2,56,21 (b) The department. The department may assess a collection fee to recover the department's costs incurred in levying against property under this section. The department shall determine its costs to be paid in all cases of levy. The obligor is liable to the department for the amount of the collection fee authorized under this paragraph. Fees collected under this paragraph shall be credited to the appropriation account under s. 20.445 (1) (L).

AB651-ASA2,56,25 (12) Priorities and use of proceeds. (a) Priorities. A lien under this section has the same priority, from the date that the lien is effective, as a judgment docketed under s. 806.15. The lien is effective for a period of 5 years from the date the lien becomes effective.

AB651-ASA2,57,4 (b) Use of proceeds. After paying any liens on a property that have priority over a lien under this section, the department shall apply all proceeds from a sale of that property under this section first against the support in respect to which the levy was made and then against levy fees and costs under sub. (11).

AB651-ASA2,57,7 (c) Refunds or credits. The department may refund or credit any amount left after the applications under par. (a), upon submission of a claim therefor and satisfactory proof of the claim, to the person entitled to that amount.

AB651-ASA2,57,11 (13) Release of levy; suspension of proceedings to enforce lien. (a) Release. The department may release the levy upon all or part of property levied upon to facilitate the collection of the liability or to grant relief from a wrongful levy, but that release does not prevent any later levy.

AB651-ASA2,57,15 (b) Settlement. If the obligor enters in to an alternative payment arrangement in accordance with guidelines established under s. 49.858 (2) (a), the department shall suspend all actions to enforce a lien under this section as long as the obligor remains in compliance with the alternative payment arrangement.

AB651-ASA2,57,19 (14) Wrongful levy. If the department determines that property has been wrongfully levied upon, the department may return the property at any time, or may return an amount of money equal to the amount of money, or value of the property, levied upon.

AB651-ASA2,58,10 (15) Actions against this state. (a) Commencement of actions. If the department has levied upon property, any person, other than the obligor who is liable to pay the support out of which the levy arose, who claims an interest in or lien on that property and claims that that property was wrongfully levied upon may bring a civil action against the state in the circuit court for Dane County. If the county child support agency has levied upon property pursuant to delegated authority under sub. (17), any person, other than the obligor who is liable to pay the support out of which the levy arose, who claims an interest in or lien on that property and claims that that property was wrongfully levied upon may bring a civil action against the county child support agency in the circuit court for the county where the court order for the payment of support, upon which the seizure is based, was first entered or last modified. That action may be brought whether or not that property has been surrendered to the department or the county child support agency. The court may grant only the relief under par. (b). No other action to question the validity of or restrain or enjoin a levy by the department or a county child support agency may be maintained.

AB651-ASA2,58,18 (b) Remedies. In an action under par. (a), prior to the sale of the property, if the court determines that property has been improperly levied upon, the court may enjoin the enforcement of the levy and order the return of the property, or may grant a judgment for the amount of money obtained by levy. The court may also order relief necessary to protect the interests of owners of the property, other than the obligor, including, when appropriate, partition of the property. After the sale of the property, if the court determines that the property has been wrongfully levied upon, it may grant a judgment for the amount of money obtained by levy.

AB651-ASA2,58,21 (c) Validity of determination. For purposes of an adjudication under this subsection, there is a rebuttable presumption that the support obligation upon which the lien is based is valid.

AB651-ASA2,59,3 (17) Delegation and power to contract. The department may delegate any duties or powers given to the department under this section to county child support agencies, except that the department must approve the initiation of any levy proceedings under sub. (7). The department shall promulgate rules prohibiting a county child support agency from using the powers delegated under this subsection to enforce a child support lien, if the value of the property that is subject to the lien is below the dollar amount specified in the rules.

AB651-ASA2,59,5 (18) Preservation of remedies. The availability of the remedies under this section does not abridge the right of the department to pursue other remedies.

AB651-ASA2, s. 74 Section 74. 49.856 of the statutes is created to read:

AB651-ASA2,59,7 49.856 Notification of delinquent payments. (1) In this section:

AB651-ASA2,59,8 (a) "Agency" means the county child support agency under s. 59.53 (5).

AB651-ASA2,59,9 (b) "Department" means the department of workforce development.

AB651-ASA2,59,14 (c) "Obligor" means a person who owes a delinquent child support, family support or maintenance payment or who owes an outstanding amount that has been ordered by a court for past support, medical expenses or birth expenses and that delinquent payment or outstanding amount is specified in the statewide support lien docket under s. 49.854 (2) (b).

AB651-ASA2,60,2 (2) If an obligor receives a judgment against another person or has settled a lawsuit against another person that provides for the payment of money, the department or agency may send a notice to any person who is ordered to pay the judgment, who has agreed to the settlement or who holds the amount of the judgment or settlement in trust. The notice shall inform the person that the amount of the judgment or settlement due the obligor is subject to a lien by the department for the payment of the delinquent payment or outstanding amount specified in the statewide support lien docket under s. 49.854 (2) (b). The notification shall include the name and address of the obligor and the total amount specified in the statewide support lien docket under s. 49.854 (2) (b). Upon receipt of a notification, the person receiving the notification shall withhold an amount equal to the amount specified in the statewide support lien docket under s. 49.854 (2) (b) before making any payment under the judgment or pursuant to the settlement.

AB651-ASA2,60,5 (3) When the department or agency notifies a person under sub. (2), the department or agency shall send a notice to the last-known address of the obligor. The notice shall do all of the following:

AB651-ASA2,60,10 (a) Inform the obligor that the department or agency notified the person who owes money to the obligor or who holds money in trust for the obligor under a judgment or pursuant to a settlement to withhold the amount that was specified in the statewide support lien docket under s. 49.854 (2) (b) from any lump sum payment that may be paid to the obligor as a result of the judgment or settlement.

AB651-ASA2,60,14 (b) Inform the obligor that he or she may request a hearing before the circuit court that rendered the order to pay support, maintenance, medical expenses or birth expenses within 20 business days after receipt of this notice. The request shall be in writing and the obligor shall mail or deliver a copy of the request to the agency.

AB651-ASA2,60,18 (c) Inform the obligor that if a hearing is requested under par. (b) the department or agency will not require the person withholding the amount to send the amount to that department or agency until a final decision is issued in response to the request for a hearing.

AB651-ASA2,60,20 (d) Request that the obligor inform the department or agency if a bankruptcy stay is in effect with respect to the obligor.

AB651-ASA2,60,25 (4) If the obligor requests a hearing under sub. (3) (b), the circuit court shall schedule a hearing within 10 business days after receiving the request. The only issue at the hearing shall be whether the person owes the delinquent payment or outstanding amount specified in the statewide support lien docket under s. 49.854 (2) (b). A family court commissioner may conduct the hearing.

AB651-ASA2,61,15 (5) Receipt of a notification by a person under sub. (2) shall constitute a lien, equal to the amount specified in the statewide support lien docket under s. 49.854 (2) (b), on any lump sum payment resulting from a judgment or settlement that may be due the obligor. The department or agency shall notify the person who received the notification under sub. (2) that the obligor has not requested a hearing or, if he or she has requested a hearing, of the results of that hearing, and of the responsibilities of the person who received the notification under sub. (2), including the requirement to submit the amount specified in the statewide support lien docket under s. 49.854 (2) (b). Use of the procedures under this section does not prohibit the department or agency from attempting to recover the amount specified in the statewide support lien docket under s. 49.854 (2) (b) through other legal means. The department or agency shall promptly notify any person who receives notification under sub. (2) if the amount specified in the statewide support lien docket under s. 49.854 (2) (b) has been recovered by some other means and no longer must be withheld from the judgment or settlement under this section.

AB651-ASA2,61,22 (6) After receipt of notification by a person under sub. (2) and before receipt of notice from the department under sub. (5) that the amount specified in the statewide support lien docket under s. 49.854 (2) (b) has been otherwise recovered, no release of any judgment, claim or demand by the obligor shall be valid as against a lien created under sub. (5), and the person making any payment to the obligor to satisfy the judgment or settlement shall remain liable to the department for the amount of the lien.

AB651-ASA2, s. 75 Section 75. 49.857 of the statutes is created to read:

AB651-ASA2,61,25 49.857 Administrative enforcement of support; denial, nonrenewal, restriction and suspension of licenses. (1) In this section:

AB651-ASA2,62,2 (a) "Child support agency" means a county child support agency under s. 59.53 (5).

AB651-ASA2,62,4 (b) "Credential" means a license, permit, certificate or registration that is granted under chs. 440 to 480.

AB651-ASA2,62,7 (c) "Credentialing board" means a board, examining board or affiliated credentialing board in the department of regulation and licensing that grants a credential.

AB651-ASA2,62,8 (d) "License" means any of the following:

AB651-ASA2,62,9 1. A license issued under s. 13.63 or a registration issued under s. 13.64.

AB651-ASA2,62,10 2. An approval specified in s. 29.09 (11m).

AB651-ASA2,62,11 2m. A fishing approval issued under s. 29.138.

AB651-ASA2,62,12 3. A license issued under s. 48.66 (1).

AB651-ASA2,62,16 4. A certification, license, training permit, registration, approval or certificate issued under s. 49.45 (2) (a) 11., 146.50 (5) (a) or (b), (6g) (a) or (8) (a), 250.05 (5), 252.23 (2), 252.24 (2), 254.176 (1) or (3) (a), 254.178 (2) (a), 254.20 (2), (3) or (4), 254.47 (1), 254.64 (1) (a) or (b), 254.71 (2) or 255.08 (2).

AB651-ASA2,62,17 5. A business tax registration certificate issued under s. 73.03 (50).

AB651-ASA2,62,19 6. A license, registration, registration certificate or certification specified in s. 93.135 (1).

AB651-ASA2,62,21 7. A license, permit or certificate of certification or registration specified in s. 101.02 (21) (a).

AB651-ASA2,62,22 8. A license issued under s. 102.17 (1) (c), 104.07 or 105.05.

AB651-ASA2,62,23 10. A certificate issued under s. 103.275, 103.91 or 103.92.

AB651-ASA2,62,24 11. A license or permit issued under chs. 115 and 118.

AB651-ASA2,63,2 12. A license or certificate of registration issued under s. 138.09, 138.12, 217.06, 218.01, 218.02, 218.04, 218.05 or 224.72 or subch. III of ch. 551.

AB651-ASA2,63,3 13. A permit issued under s. 170.12.

AB651-ASA2,63,4 14. A certification under s. 165.85.

AB651-ASA2,63,6 15. A license, permit or registration issued under s. 218.01, 218.11, 218.12, 218.22, 218.32, 218.41, 218.51, 341.51, 343.305 (6), 343.61 or 343.62.

AB651-ASA2,63,7 16. A license, registration or certification specified in s. 299.08 (1) (a).

AB651-ASA2,63,9 17. A license issued under ch. 343 or, with respect to restriction, limitation or suspension, an individual's operating privilege, as defined in s. 340.01 (40).

AB651-ASA2,63,10 18. A credential.

AB651-ASA2,63,11 19. A license issued under s. 563.24 or ch. 562.

AB651-ASA2,63,13 20. A license issued under s. 628.04, 632.68 (2) or (4) or 633.14 or a temporary license issued under s. 628.09.

AB651-ASA2,63,14 21. A license to practice law.

AB651-ASA2,63,17 (e) "Licensing agency" means a board, office or commissioner, department or division within a department that grants or issues a license, but does not include a credentialing board.

AB651-ASA2,63,19 (em) "Licensing authority" means the supreme court or the Lac du Flambeau band of the Lake Superior Chippewa.

AB651-ASA2,63,22 (f) "Subpoena or warrant" means a subpoena or warrant issued by the department of workforce development or a child support agency and relating to paternity or support proceedings.

AB651-ASA2,63,24 (g) "Support" means child or family support, maintenance, birth expenses, medical expenses or other expenses related to the support of a child or former spouse.

AB651-ASA2,64,8 (2) (a) The department of workforce development shall establish a system, in accordance with federal law, under which a licensing authority is requested, and a licensing agency or credentialing board is required, to restrict, limit, suspend, withhold, deny, refuse to grant or issue or refuse to renew or revalidate a license in a timely manner upon certification by and in cooperation with the department of workforce development, if the individual holding or applying for the license is delinquent in making court-ordered payments of support or fails to comply, after appropriate notice, with a subpoena or warrant.

AB651-ASA2,64,12 (b) Under the system, the department of workforce development shall enter into a memorandum of understanding with a licensing authority, if the licensing authority agrees, and with a licensing agency. A memorandum of understanding under this paragraph shall address at least all of the following:

AB651-ASA2,64,25 1. The circumstances under which the licensing authority or the licensing agency must restrict, limit, suspend, withhold, deny, refuse to grant or issue or refuse to renew or revalidate a license and guidelines for determining the appropriate action to take. The memorandum of understanding with the department of regulation and licensing shall include the circumstances under which the department of regulation and licensing shall direct a credentialing board to restrict, limit, suspend, withhold, deny or refuse to grant a credential and guidelines for determining the appropriate action to take. The guidelines under this subdivision for determining the appropriate action to take shall require the consideration of whether the action is likely to have an adverse effect on public health, safety or welfare or on the environment, and of whether the action is likely to adversely affect individuals other than the individual holding or applying for the license, such as employes of that individual.

AB651-ASA2,65,2 2. Procedures that the department of workforce development shall use for doing all of the following:

AB651-ASA2,65,10 a. Certifying to the licensing authority or licensing agency a delinquency in support or a failure to comply with a subpoena or warrant. The memorandum of understanding with the department of regulation and licensing shall include procedures for the department of regulation and licensing to notify a credentialing board that a certification of delinquency in support or failure to comply with a subpoena or warrant has been made by the department of workforce development with respect to an individual who holds or applied for a credential granted by the credentialing board.

AB651-ASA2,65,12 b. Notifying an individual who is delinquent in making court-ordered payments of support under sub. (3) (a).

AB651-ASA2,65,14 bg. Notifying an individual who is delinquent in making court-ordered payments of support and who fails to request a hearing under sub. (3) (am).

AB651-ASA2,65,16 br. Notifying an individual who fails to comply with a subpoena or warrant under sub. (3) (b).

AB651-ASA2,65,24 c. Notifying the licensing authority or licensing agency that an individual has paid delinquent support or made satisfactory alternative payment arrangements or satisfied the requirements under a subpoena or warrant. The memorandum of understanding with the department of regulation and licensing shall include procedures for the department of regulation and licensing to notify a credentialing board that an individual who holds or applied for a credential granted by the credentialing board has paid delinquent support or made satisfactory alternative payment arrangements or satisfied the requirements under a subpoena or warrant.

AB651-ASA2,66,2 3. Procedures that the licensing authority or licensing agency shall use for doing all of the following:

AB651-ASA2,66,7 a. Restricting, limiting, suspending, withholding, denying, refusing to grant or issue or refusing to renew or revalidate a license. The memorandum of understanding with the department of regulation and licensing shall include procedures for the department of regulation and licensing to direct a credentialing board to restrict, limit, suspend, withhold, deny or refuse to grant a credential.

AB651-ASA2,66,8 b. Notifying an individual of action taken under sub. (3) (c) 2.

AB651-ASA2,66,22 c. Issuing or reinstating a license if the department of workforce development notifies the licensing authority or licensing agency that an individual who was delinquent in making court-ordered payments of support has paid the delinquent support or made satisfactory alternative payment arrangements or that an individual who failed to comply with a subpoena or warrant has satisfied the requirements under the subpoena or warrant. The memorandum of understanding with the department of regulation and licensing shall include procedures for the department of regulation and licensing to direct a credentialing board to grant or reinstate a credential if the department of workforce development notifies the department of regulation and licensing that an individual who holds or applied for a credential granted by the credentialing board has paid the delinquent support or made satisfactory alternative payment arrangements or that an individual who failed to comply with a subpoena or warrant has satisfied the requirements under the subpoena or warrant.

AB651-ASA2,67,2 d. Issuing or reinstating a license after the maximum time has elapsed if an individual who was delinquent in making court-ordered payments of support does not pay the delinquent support or make satisfactory alternative payment arrangements and if an individual who failed to comply with a subpoena or warrant fails to satisfy the requirements under the subpoena or warrant.

AB651-ASA2,67,4 4. Procedures for the use under the system of social security numbers obtained from license applications.

AB651-ASA2,67,8 5. Procedures for safeguarding the confidentiality of information about an individual, including social security numbers obtained by the department of workforce development, the licensing authority, the licensing agency or a credentialing board.