SB45: Bill Text

SB45,702,2 49.185 (5) Applicability. This section applies beginning on the date stated in the notice under s. 49.141 (2) (d), or on November 1, 1997, whichever is later.

SB45, s. 1334 Section 1334. 49.187 of the statutes is created to read:

SB45,702,9 49.187 Individual development accounts. (1) Administration. The department may establish a program to permit individuals who are eligible under sub. (2) to establish individual development accounts. If the department establishes the program under this section, the program shall be administered in accordance with P.L. 105-285. The department may contract with community action agencies under s. 46.30 to administer the program under this section.

SB45,702,11 (2) Eligibility. An individual is eligible to establish an individual development account if the all of the following criteria with respect to the individual are met:

SB45,702,12 (a) The individual is at least 18 years old.

SB45,702,13 (b) The individual is a custodial parent, as defined in s. 49.141 (1) (b).

SB45,702,18 (c) The individual meets the eligibility requirements under P.L. 105-285, section 408 (a). In determining the net worth of an individual's household, as required under P.L. 105-285, section 408 (a) (2), the community action agency or the department shall exclude the equity value of vehicles up to a total equity value of $10,000 and one home that serves as the homestead of the individual's household.

SB45,703,3 (3) Funding for and use of an individual development account. (a) An individual who establishes an individual development account under this section may deposit into the account only earned income, as defined in section 911 (d) (2) of the Internal Revenue Code of 1986. For every $1 that the individual deposits in the account, the community action agency with which the department contracts under sub. (1), or, if the department does not enter into a contract under sub. (1), the department, shall deposit not less than 50 cents nor more than $4 into the account. Moneys deposited in an individual development account may be withdrawn only for emergencies as provided under P.L. 105-285, section 404 (3) or for qualified expenses specified under P.L. 105-285, section 404 (8).

SB45,703,6 (b) An individual who establishes an individual development account under this section shall participate in financial planning and economic education programs offered by the community action agency or by the department.

SB45, s. 1335 Section 1335. 49.19 (11s) (a) of the statutes is amended to read:

SB45,703,15 49.19 (11s) (a) The department shall conduct a demonstration project under this subsection pursuant to a waiver from the secretary of the federal department of health and human services beginning on January 1, 1996. To the extent permitted in the waiver, the department may apply pars. (b) to (d) to all recipients of aid under this section or to a test group of recipients of aid under this section determined by the department. Paragraphs (b) to (d) do not apply to persons who are subject to s. 49.25, 1997 stats., and shall apply only while a waiver under this paragraph is in effect and only with respect to recipients covered by the waiver.

SB45, s. 1336 Section 1336. 49.19 (20) (a) of the statutes is amended to read:

SB45,703,22 49.19 (20) (a) Beginning on January 1, 1999, or beginning on the first day of the 6th month beginning after the date stated in the notice under s. 49.141 (2) (d), 1997 stats., whichever is sooner, no person is eligible to receive benefits under this section and no aid may be granted under this section. No additional notice, other than the enactment of this paragraph, is required to be given under sub. (13) to recipients of aid under this section to terminate their benefits under this paragraph.

SB45, s. 1337 Section 1337. 49.191 of the statutes is repealed.

SB45, s. 1338 Section 1338. 49.193 of the statutes is repealed.

SB45, s. 1339 Section 1339. 49.195 (1) of the statutes is amended to read:

SB45,705,5 49.195 (1) If any parent at the time of receiving aid under s. 49.19 or a benefit under s. 49.148, 49.155 or 49.157 or at any time thereafter acquires property by gift, inheritance, sale of assets, court judgment or settlement of any damage claim, or by winning a lottery or prize, the county granting such aid, or the Wisconsin works agency granting such a benefit, may sue the parent on behalf of the department to recover the value of that portion of the aid or of the benefit which does not exceed the amount of the property so acquired. The value of the aid or benefit liable for recovery under this section may not include the value of work performed by a member of the family in a community work experience program under s. 46.215 (1) (o), 1991 stats., s. 46.22 (1) (b) 11., 1991 stats., or s. 49.50 (7j) (d), 1991 stats., or in a community work experience component under s. 49.193 (6), 1997 stats. During the life of the parent, the 10-year statute of limitations may be pleaded in defense against any suit for recovery under this section; and if such property is his or her homestead it shall be exempt from execution on the judgment of recovery until his or her death or sale of the property, whichever occurs first. Notwithstanding the foregoing restrictions and limitations, where the aid or benefit recipient is deceased a claim may be filed against any property in his or her estate and the statute of limitations specified in s. 859.02 shall be exclusively applicable. The court may refuse to render judgment or allow the claim in any case where a parent, spouse or child is dependent on the property for support, and the court in rendering judgment shall take into account the current family budget requirement as fixed by the U.S. department of labor for the community or as fixed by the authorities of the community in charge of public assistance. The records of aid or benefits paid kept by the county, by the department or by the Wisconsin works agency are prima facie evidence of the value of the aid or benefits furnished. Liability under this section shall extend to any parent or stepparent whose family receives aid under s. 49.19 or benefits under s. 49.148, 49.155 or 49.157 during the period that he or she is a member of the same household, but his or her liability is limited to such period. This section does not apply to medical and health assistance payments for which recovery is prohibited or restricted by federal law or regulation.

SB45, s. 1340 Section 1340. 49.195 (3) of the statutes is amended to read:

SB45,705,16 49.195 (3) A county, tribal governing body, Wisconsin works agency or the department shall determine whether an overpayment has been made under s. 49.19, 49.148, 49.155 or 49.157 and, if so, the amount of the overpayment. The county, tribal governing body, Wisconsin works agency or department shall provide notice of the overpayment to the liable person and shall give that person an opportunity for a review following the procedure specified under s. 49.152, or for a hearing under ch. 227. Notwithstanding s. 49.96, the department shall promptly recover all overpayments made under s. 49.19, 49.148, 49.155 or 49.157 that have not already been received under s. 49.161 or 49.19 (17) and shall promulgate rules establishing policies and procedures to administer this subsection.

SB45, s. 1341 Section 1341. 49.195 (3m) of the statutes is created to read:

SB45,705,21 49.195 (3m) (a) 1. If any person fails to pay to the department any amount determined under sub. (3), no review or appeal of that determination is pending and the time for requesting a review or taking an appeal has expired, the department may issue a warrant directed to the clerk of circuit court of any county.

SB45,705,24 2. The clerk of circuit court shall enter in the judgment and lien docket the name of the person mentioned in the warrant, the amount for which the warrant is issued and the date on which the clerk entered that information.

SB45,706,3 3. A warrant entered under subd. 2. shall be considered in all respects as a final judgment constituting a perfected lien upon the person's right, title and interest in all real and personal property located in the county in which the warrant is entered.

SB45,706,11 4. After issuing a warrant, the department may file an execution with the clerk of circuit court for filing with the sheriff of the county, commanding the sheriff to levy upon and sell sufficient real and personal property of the person to pay the amount stated in the warrant in the same manner as upon an execution against property issued upon the judgment of a court of record, and to return the warrant to the department and pay to it the money collected by virtue of the warrant within 60 days after receipt of the warrant. The execution may not command the sheriff to levy upon or sell any property that is exempt from execution under ss. 815.18 (3) and 815.20.

SB45,706,19 (b) The clerk of circuit court shall accept, file and enter the warrant in the judgment and lien docket without prepayment of any fee, but the clerk of circuit court shall submit a statement of the proper fee semiannually to the department covering the periods from January 1 to June 30 and July 1 to December 31 unless a different billing period is agreed to between the clerk of circuit court and the department. The department shall pay the fees, but shall add the fees provided by s. 814.61 (5) for entering the warrants to the amount of the warrant and shall collect the fees from the person named in the warrant when satisfaction or release is presented for entry.

SB45,706,22 (c) If a warrant that is not satisfied in full is returned, the department may enforce the amount due as if the department had recovered judgment against the person named in the warrant for the same amount.

SB45,707,2 (d) When the amount set forth in a warrant and all costs due the department have been paid to it, the department shall issue a satisfaction of the warrant and file it with the clerk of circuit court. The clerk of circuit court shall immediately enter a satisfaction of the judgment on the judgment and lien docket. The department shall send a copy of the satisfaction to the person named in the warrant.

SB45,707,8 (e) If the department finds that the interests of the state will not be jeopardized, the department may issue a release of any warrant with respect to any real or personal property upon which the warrant is a lien or cloud upon title. Upon presentation to the clerk and payment of the fee for filing the release, the clerk shall enter the release of record. The release is conclusive that the lien or cloud upon the title of the property covered by the release is extinguished.

SB45,707,14 (f) Notwithstanding s. 49.96, at any time after the filing of a warrant, the department may commence and maintain a garnishee action as provided by ch. 812 or may use the remedy of attachment as provided by ch. 811 for actions to enforce a judgment. The place of trial of such an action may be either in Dane County or the county where the debtor resides and may not be changed from the county in which that action is commenced, except upon consent of the parties.

SB45,707,17 (g) If the department issues an erroneous warrant, the department shall issue a notice of withdrawal of the warrant to the clerk of circuit court for the county in which the warrant is filed. The clerk shall void the warrant and any resulting liens.

SB45, s. 1342 Section 1342. 49.195 (3n) of the statutes is created to read:

SB45,707,19 49.195 (3n) (a) In this subsection:

SB45,707,20 1. "Debt" means the amount of liability determined under sub. (3).

SB45,707,21 2. "Debtor" means an individual who is liable under sub. (3).

SB45,708,2 3. "Disposable earnings" means that part of the earnings of any debtor after the deduction from those earnings of any amounts required by law to be withheld, any life, health, dental or similar type of insurance premiums, union dues, any amount necessary to comply with a court order to contribute to the support of minor children, and any levy, wage assignment or garnishment executed prior to the date of a levy under this subsection.

SB45,708,4 4. "Federal minimum hourly wage" means that wage prescribed by 29 USC 206 (a) (1).

SB45,708,5 5. "Levy" means all powers of distraint and seizure.

SB45,708,10 6. "Property" includes all tangible and intangible personal property and rights to such property, including compensation paid or payable for personal services, whether denominated as wages, salary, commission, bonus or otherwise, periodic payments received pursuant to a pension or retirement program, rents, proceeds of insurance and contract payments.

SB45,708,16 (b) If any debtor neglects or refuses to pay a debt after the department has made demand for payment, the department may collect that debt and the expenses of the levy by levy upon any property belonging to the debtor. Whenever the value of any property that has been levied upon under this section is not sufficient to satisfy the claim of the department, the department may levy upon any additional property of the person until the debt and expenses of the levy are fully paid.

SB45,708,22 (c) Any person in possession of or obligated with respect to property or rights to property that is subject to levy 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 which is, at the time of the demand, subject to any prior attachment or execution under any judicial process.

SB45,708,25 (d) 1. Any debtor who fails or refuses to surrender any property or rights to property that is subject to levy, upon demand by the department, is subject to proceedings to enforce the amount of the levy.

SB45,709,7 2. Any 3rd party who fails to surrender any property or rights to property subject to levy, upon demand of the department, is subject to proceedings to enforce the levy. The 3rd party is not liable to the department under this subdivision for more than 25% of the debt. The department shall serve the levy as provided under par. (m) on any 3rd party who fails to surrender property under this subdivision. Proceedings may not be initiated by the department until 5 days after service of the demand.

SB45,709,12 3. When a 3rd party surrenders the property or rights to the property on demand of the department or discharges the obligation to the department for which the levy is made, the 3rd party is discharged from any obligation or liability to the debtor with respect to the property or rights to the property arising from the surrender or payment to the department.

SB45,709,20 (e) 1. If the department has levied upon property, any person, other than the debtor who is liable to pay the debt 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. That action may be brought whether or not that property has been surrendered to the department. The court may grant only the relief under subd. 2. No other action to question the validity of or restrain or enjoin a levy by the department may be maintained.

SB45,709,24 2. In an action under subd. 1., if a levy would irreparably injure rights to property, the court may enjoin the enforcement of that levy. 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.

SB45,710,3 3. For purposes of an adjudication under this paragraph, the determination of the debt upon which the interest or lien of the department is based is conclusively presumed to be valid.

SB45,710,5 (f) The department shall determine its costs and expenses to be paid in all cases of levy.

SB45,710,9 (g) 1. The department shall apply all money obtained under this subsection first against the expenses of the proceedings and then against the liability in respect to which the levy was made and any other liability owed to the department by the debtor.

SB45,710,12 2. The department may refund or credit any amount left after the applications under subd. 1., upon submission of a claim for that amount and satisfactory proof of the claim, to the person entitled to that amount.

SB45,710,15 (h) 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.

SB45,710,18 (j) 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 levied upon.

SB45,710,23 (k) Any person who removes, deposits or conceals or aids in removing, depositing or concealing any property upon which a levy is authorized under this subsection with intent to evade or defeat the assessment or collection of any debt may be fined not more than $5,000 or imprisoned for not more than 3 years or both, and shall be liable to the state for the costs of prosecution.

SB45,711,11 (L) If no appeal or other proceeding for review permitted by law is pending and the time for taking an appeal or petitioning for review has expired, the department shall make a demand to the debtor for payment of the debt which is subject to levy and give notice that the department may pursue legal action for collection of the debt against the debtor. The department shall make the demand for payment and give the notice at least 10 days prior to the levy, personally or by any type of mail service which requires a signature of acceptance, at the address of the debtor as it appears on the records of the department. The demand for payment and notice shall include a statement of the amount of the debt, including interest and penalties, and the name of the debtor who is liable for the debt. The debtor's refusal or failure to accept or receive the notice does not prevent the department from making the levy. Notice prior to levy is not required for a subsequent levy on any debt of the same debtor within one year of the date of service of the original levy.

SB45,711,14 (m) 1. The department shall serve the levy upon the debtor and 3rd party by personal service or by any type of mail service which requires a signature of acceptance.

SB45,711,21 2. Personal service shall be made upon an individual, other than a minor or incapacitated person, by delivering a copy of the levy to the debtor or 3rd party personally; by leaving a copy of the levy at the debtor's dwelling or usual place of abode with some person of suitable age and discretion residing there; by leaving a copy of the levy at the business establishment with an officer or employe of the establishment; or by delivering a copy of the levy to an agent authorized by law to receive service of process.

SB45,711,25 3. The department representative who serves the levy shall certify service of process on the notice of levy form and the person served shall acknowledge receipt of the certification by signing and dating it. If service is made by mail, the return receipt is the certificate of service of the levy.

SB45,712,2 4. The debtor's or 3rd party's failure to accept or receive service of the levy does not invalidate the levy.

SB45,712,7 (n) Within 20 days after the service of the levy upon a 3rd party, the 3rd party shall file an answer with the department stating whether the 3rd party is in possession of or obligated with respect to property or rights to property of the debtor, including a description of the property or the rights to property and the nature and dollar amount of any such obligation.

SB45,712,10 (p) A levy is effective from the date on which the levy is first served on the 3rd party until the liability out of which the levy arose is satisfied, until the levy is released or until one year from the date of service, whichever occurs first.

SB45,712,12 (q) 1. The debtor is entitled to an exemption from levy of the greater of the following:

SB45,712,14 a. A subsistence allowance of 75% of the debtor's disposable earnings then due and owing.

SB45,712,19 b. An amount equal to 30 times the federal minimum hourly wage for each full week of the debtor's pay period; or, in the case of earnings for a period other than a week, a subsistence allowance computed so that it is equivalent to that amount using a multiple of the federal minimum hourly wage prescribed by the department by rule.

SB45,712,21 2. The first $1,000 of an account in a depository institution is exempt from any levy to recover a benefit overpayment.

SB45,713,2 (r) No employer may discharge or otherwise discriminate with respect to the terms and conditions of employment against any employe by reason of the fact that his or her earnings have been subject to levy for any one levy or because of compliance with any provision of this subsection. Any person who violates this paragraph may be fined not more than $1,000 or imprisoned for not more than one year or both.

SB45,713,7 (s) Any debtor who is subject to a levy proceeding made by the department has the right to appeal the levy proceeding under ch. 227.44. The appeal is limited to questions of prior payment of the debt that the department is proceeding against, and mistaken identity of the debtor. The levy is not stayed pending an appeal in any case where property is secured through the levy.

SB45,713,10 (t) 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.

SB45, s. 1343 Section 1343. 49.195 (3n) (k) of the statutes, as created by 1999 Wisconsin Act .... (this act), is amended to read:

SB45,713,18 49.195 (3n) (k) Any person who removes, deposits or conceals or aids in removing, depositing or concealing any property upon which a levy is authorized under this subsection with intent to evade or defeat the assessment or collection of any debt may be fined not more than $5,000 or imprisoned for not more than 3 years 4 years and 6 months or both, and shall be liable to the state for the costs of prosecution.

SB45, s. 1344 Section 1344. 49.195 (3n) (r) of the statutes, as created by 1999 Wisconsin Act .... (this act), is amended to read:

SB45,714,2 49.195 (3n) (r) No employer may discharge or otherwise discriminate with respect to the terms and conditions of employment against any employe by reason of the fact that his or her earnings have been subject to levy for any one levy or because of compliance with any provision of this subsection. Any person who violates this paragraph may be fined not more than $1,000 or imprisoned for not more than one year 2 years or both.

SB45, s. 1345 Section 1345. 49.195 (3p) of the statutes is created to read:

SB45,714,5 49.195 (3p) The availability of the remedies under subs. (3m) and (3n) does not abridge the right of the department to pursue other remedies.

SB45, s. 1346 Section 1346. 49.195 (3r) of the statutes is created to read:

SB45,714,10 49.195 (3r) From the appropriation under s. 20.445 (3) (L) the department may contract with or employ a collection agency or other person to enforce a repayment obligation of a person who is found liable under sub. (3) who is delinquent in making repayments.

SB45, s. 1347 Section 1347. 49.20 of the statutes is repealed.

SB45, s. 1348 Section 1348. 49.21 of the statutes is repealed.

SB45, s. 1349 Section 1349. 49.23 (1) of the statutes is amended to read:

SB45,715,4 49.23 (1) From the appropriation under s. 20.445 (3) (cb) (k), the department shall award grants to counties for programs to revise child support orders. Each county receiving a grant shall review child support orders awarded to persons who receive benefits under s. 48.57 (3m) or (3n) or 49.148 or whose children receive benefits under s. 49.19 and to persons who do not receive benefits under s. 48.57 (3m) or (3n) or 49.148 and whose children do not receive benefits under s. 49.19 and shall initiate actions to revise the orders based on that review. Each county receiving a grant shall review child support orders awarded to persons who receive benefits under s. 48.57 (3m) or (3n) or 49.148 or whose children receive benefits under s. 49.19 and child support orders awarded to persons who do not receive benefits under s. 48.57 (3m) or (3n) or 49.148 and whose children do not receive benefits under s. 49.19 in proportion to the number of those 2 categories of orders in the county's child support case load. Before a county may initiate an action to revise a child support order under this subsection for a person who does not receive benefits under s. 48.57 (3m) or (3n) or 49.148 and whose children do not receive benefits under s. 49.19, the custodial parent of the children must voluntarily consent to the revision.

SB45, s. 1350 Section 1350. 49.23 (2) (a) (intro.) of the statutes is amended to read:

SB45,715,10 49.23 (2) (a) (intro.) From the appropriation under s. 20.445 (3) (cb) (k), the department shall provide state incentive payments, in a total amount of not less than $259,000 in each fiscal year, to counties that meet the child support collection and child support administrative efficiency criteria, according to a distribution formula determined by the department that does all of the following:

SB45, s. 1351 Section 1351. 49.23 (2) (a) 3. of the statutes is repealed.

SB45, s. 1352 Section 1352. 49.24 (1) of the statutes, as affected by 1997 Wisconsin Act 27, section 1882n, is amended to read:

SB45,715,18 49.24 (1) From the appropriation under s. 20.445 (3) (k), the department shall provide child support incentive payments to counties to offset reduced federal child support incentive payments. Total payments under this subsection may not exceed $3,178,000 $3,850,000 in fiscal year 1997-98 1999-2000 or $3,850,000 in fiscal year 1998-99 2000-01.

SB45, s. 1353 Section 1353. 49.25 of the statutes is repealed.

SB45, s. 1354 Section 1354. 49.26 (1) (h) 1. as. of the statutes is amended to read:

SB45,716,2 49.26 (1) (h) 1. as. The individual has failed to request a hearing or has failed to show good cause for not cooperating with case management efforts in a hearing. If the individual is a recipient of aid under s. 49.19, the hearing shall be requested and held under s. 49.21 (1). If the individual is a member of a Wisconsin works group, as defined in s. 49.141 (1) (s), the The hearing shall be requested and held under s. 49.152. The department shall determine by rule the criteria for good cause.

SB45, s. 1355 Section 1355. 49.27 of the statutes is repealed.

SB45, s. 1356 Section 1356. 49.30 (1m) (c) of the statutes is created to read:

SB45,716,8 49.30 (1m) (c) If a request for payment under sub. (1) is made more than 12 months after the death of the recipient, the county or applicable tribal governing body or organization responsible for burial of the recipient is not required to make a payment for cemetery, funeral or burial expenses.