49.82 (1) DEPARTMENTS TO ADVISE COUNTIES. The department of health and family services and the department of workforce development children and families shall advise all county officers charged with the administration of requirements relating to public assistance programs under this chapter and shall render all possible assistance in securing compliance therewith, including the preparation of necessary forms and reports. The department of health and family services and the department of workforce development children and families shall also publish any information that those departments consider advisable to acquaint persons entitled to public assistance, and the public generally, with the laws governing public assistance under this chapter.
SECTION 591. 49.83 of the statutes is amended to read:
49.83 Limitation on giving information. Except as provided under s. 49.32 (9), (10), and (10m), no person may use or disclose information concerning applicants and recipients of relief funded by a relief block grant, aid to families with dependent children, Wisconsin Works under ss. 49.141 to 49.161, social services, child and spousal support and establishment of paternity and medical support liability services under s. 49.22, or supplemental payments under s. 49.77 for any purpose not connected with the administration of the programs, except that the department of workforce development children and families may disclose such information to the department of revenue for the sole purpose of administering state taxes. Any person violating this section may be fined not less than $25 nor more than $500 or imprisoned in the county jail not less than 10 days nor more than one year or both.
SECTION 592. 49.845 (1) of the statutes is amended to read:
49.845 (1) FRAUD INVESTIGATION. From the appropriations under s. 20.435 (4) (bn), (kz), (L), and (nn), the department of health and family services shall establish a program to investigate suspected fraudulent activity on the part of recipients of medical assistance under subch. IV, food stamp benefits under the food stamp program under 7 USC 2011 to 2036, supplemental security income payments under s. 49.77, payments for the support of children of supplemental security income recipients under s. 49.775, and health care benefits under the Badger Care health care program under s. 49.665 and, if the department of workforce development children and families contracts with the department of health and family services under sub. (4), on the part of recipients of aid to families with dependent children under s. 49.19 and participants in the Wisconsin Works program under ss. 49.141 to 49.161. The activities of the department of health and family services under this subsection may include comparisons of information provided to the department by an applicant and information provided by the applicant to other federal, state, and local agencies, development of an advisory welfare investigation prosecution standard, and provision of funds to county departments under ss. 46.215, 46.22, and 46.23 and to Wisconsin Works agencies to encourage activities to detect fraud. The department of health and family services shall cooperate with district attorneys regarding fraud prosecutions.
SECTION 593. 49.845 (2) of the statutes is amended to read:
49.845 (2) STATE ERROR REDUCTION ACTIVITIES. The department of health and family services shall conduct activities to reduce payment errors in the Medical Assistance program under subch. IV, the food stamp program under 7 USC 2011 to 2036, the supplemental security income payments program under s. 49.77, the program providing payments for the support of children of supplemental security income recipients under s. 49.775, and the Badger Care health care program under s. 49.665 and, if the department of workforce development children and families contracts with the department of health and family services under sub. (4), in Wisconsin Works under ss. 49.141 to 49.161.
SECTION 594. 49.845 (3) of the statutes is amended to read:
49.845 (3) WISCONSIN WORKS AGENCY ERROR REDUCTION. If the department of workforce development children and families contracts with the department of health and family services under sub. (4), the department of health and family services shall provide funds from the appropriation under s. 20.435 (4) (kz) to Wisconsin Works agencies to offset the administrative costs of reducing payment errors in Wisconsin Works under ss. 49.141 to 49.161.
SECTION 595. 49.845 (4) of the statutes is amended to read:
49.845 (4) CONTRACT FOR WISCONSIN WORKS. Notwithstanding s. 49.197 (1m) and (3), the department of workforce development children and families may contract with the department of health and family services to investigate suspected fraudulent activity on the part of recipients of aid to families with dependent children under s. 49.19 and participants in Wisconsin Works under ss. 49.141 to 49.161 and to conduct activities to reduce payment errors in Wisconsin Works under ss. 49.141 to 49.161, as provided in this section.
SECTION 596. 49.85 (1) of the statutes is amended to read:
49.85 (1) DEPARTMENT NOTIFICATION REQUIREMENT. If a county department under s. 46.215, 46.22, or 46.23 or a governing body of a federally recognized American Indian tribe or band determines that the department of health and family services may recover an amount under s. 49.497, 49.793, or 49.847, or that the department of workforce development children and families may recover an amount under s. 49.161 or 49.195 (3) or collect an amount under s. 49.147 (6) (cm), the county department or governing body shall notify the affected department of the determination. If a Wisconsin Works agency determines that the department of workforce development children and families may recover an amount under s. 49.161 or 49.195 (3), or collect an amount under s. 49.147 (6) (cm), the Wisconsin Works agency shall notify the department of workforce development children and families of the determination.
SECTION 597. 49.85 (2) (b) of the statutes is amended to read:
49.85 (2) (b) At least annually, the department of workforce development children and families shall certify to the department of revenue the amounts that, based on the notifications received under sub. (1) and on other information received by the department of workforce development children and families, the department of workforce development children and families has determined that it may recover under ss. 49.161 and 49.195 (3) and collect under s. 49.147 (6) (cm), except that the department of workforce development children and families may not certify an amount under this subsection unless it has met the notice requirements under sub. (3) and unless its determination has either not been appealed or is no longer under appeal.
SECTION 598. 49.85 (3) (b) (intro.) of the statutes is amended to read:
49.85 (3) (b) (intro.) At least 30 days before certification of an amount, the department of workforce development children and families shall send a notice to the last-known address of the person from whom that department intends to recover or collect the amount. The notice shall do all of the following:
SECTION 599. 49.85 (3) (b) 1. of the statutes is amended to read:
49.85 (3) (b) 1. Inform the person that the department of workforce development children and families intends to certify to the department of revenue an amount that the department of workforce development children and families has determined to be due under s. 49.161 or 49.195 (3) or to be delinquent under a repayment agreement for a loan under s. 49.147 (6), for setoff from any state tax refund that may be due the person.
SECTION 600. 49.85 (3) (b) 2. of the statutes is amended to read:
49.85 (3) (b) 2. Inform the person that he or she may appeal the determination of the department of workforce development children and families to certify the amount by requesting a hearing under sub. (4) within 30 days after the date of the letter and inform the person of the manner in which he or she may request a hearing.
SECTION 601. 49.85 (3) (b) 3. of the statutes is amended to read:
49.85 (3) (b) 3. Inform the person that, if the determination of the department of workforce development children and families is appealed, that department will not certify the amount to the department of revenue while the determination of the department of workforce development children and families is under appeal.
SECTION 602. 49.85 (3) (b) 4. of the statutes is amended to read:
49.85 (3) (b) 4. Inform the person that, unless a contested case hearing is requested to appeal the determination of the department of workforce development children and families, the person may be precluded from challenging any subsequent setoff of the certified amount by the department of revenue, except on the grounds that the certified amount has been partially or fully paid or otherwise discharged, since the date of the notice.
SECTION 603. 49.85 (3) (b) 5. of the statutes is amended to read:
49.85 (3) (b) 5. Request that the person inform the department of workforce development children and families if a bankruptcy stay is in effect with respect to the person or if the claim has been discharged in bankruptcy.
SECTION 604. 49.85 (4) (b) of the statutes is amended to read:
49.85 (4) (b) If a person has requested a hearing under this subsection, the department of workforce development children and families shall hold a contested case hearing under s. 227.44, except that the department of workforce development children and families may limit the scope of the hearing to exclude issues that were presented at a prior hearing or that could have been presented at a prior opportunity for hearing.
SECTION 605. 49.85 (5) of the statutes is amended to read:
49.85 (5) EFFECT OF CERTIFICATION. Receipt of a certification by the department of revenue shall constitute a lien, equal to the amount certified, on any state tax refunds or credits owed to the obligor. The lien shall be foreclosed by the department of revenue as a setoff under s. 71.93. Certification of an amount under this section does not prohibit the department of health and family services or the department of workforce development children and families from attempting to recover or collect the amount through other legal means. The department of health and family services or the department of workforce development children and families shall promptly notify the department of revenue upon recovery or collection of any amount previously certified under this section.
SECTION 606. 49.852 (1) of the statutes is renumbered 49.852 (1m) and amended to read:
49.852 (1m) The department of workforce development may direct the department of employee trust funds, the retirement system of any 1st class city, any retirement system established under chapter 201, laws of 1937, or the administrator of any other pension plan to withhold the amount specified in the statewide support lien docket under s. 49.854 (2) (b) from any lump sum payment from a pension plan that may be paid a delinquent support obligor, except that the department of workforce development may not direct that an amount be withheld under this subsection unless it has met the notice requirements under sub. (2) and unless the amount specified has either not been appealed or is no longer under appeal under s. 49.854.
SECTION 607. 49.852 (1c) of the statutes is created to read:
49.852 (1c) In this section, "department" means the department of children and families.
SECTION 608. 49.852 (2) (intro.) of the statutes is amended to read:
49.852 (2) (intro.) The department of workforce development shall send a notice to the last-known address of the person from whom the department intends to recover the amount specified in the statewide support lien docket under s. 49.854 (2) (b). The notice shall do all of the following:
SECTION 609. 49.852 (2) (c) of the statutes is amended to read:
49.852 (2) (c) Request that the person inform the department of workforce development or the appropriate county child support agency under s. 59.53 (5) if a bankruptcy stay is in effect with respect to the person.
SECTION 610. 49.852 (3) of the statutes is amended to read:
49.852 (3) If a person has requested a hearing pursuant to sub. (2) (b), the hearing shall be conducted before the circuit court that rendered the initial order to pay support. The court shall schedule a hearing within 10 business days after receiving a request for a hearing. A circuit court commissioner may conduct the hearing. If the court determines that the person owes the amount specified in the statewide support lien docket under s. 49.854 (2) (b), the department of workforce development may direct the department of employee trust funds, the retirement system of any 1st class city, any retirement system established under chapter 201, laws of 1937, or the administrator of any other pension plan, whichever is appropriate, to withhold the amount from any lump sum payment from a pension plan that may be paid the person. If the court determines that the person does not owe the amount specified in the statewide support lien docket under s. 49.854 (2) (b), the department of workforce development may not direct the department of employee trust funds, the retirement system of any 1st class city, any retirement system established under chapter 201, laws of 1937, or the administrator of any other pension plan, whichever is appropriate, to withhold the amount from any lump sum payment from a pension plan that may be paid the person.
SECTION 611. 49.852 (4) (a) of the statutes is amended to read:
49.852 (4) (a) If the department of workforce development directs the department of employee trust funds, the retirement system of any 1st class city, any retirement system established under chapter 201, laws of 1937, or the administrator of any other pension plan to withhold the amount specified in the statewide support lien docket under s. 49.854 (2) (b), this directive shall constitute a lien, equal to the amount specified in the statewide support lien docket, on any lump sum payment from a pension plan that may be paid the person.
SECTION 612. 49.852 (4) (b) of the statutes is amended to read:
49.852 (4) (b) If the department of workforce development directs the department of employee trust funds, the retirement system of any 1st class city, any retirement system established under chapter 201, laws of 1937, or the administrator of any other pension plan to withhold the amount specified in the statewide support lien docket under s. 49.854 (2) (b), the department of employee trust funds, the retirement system of any 1st class city, any retirement system established under chapter 201, laws of 1937, or the administrator of any other pension plan shall deduct from any lump sum payment that may be paid the person the amount specified in the statewide support lien docket, less any amount specified under par. (d). If the amount specified in the statewide support lien docket under s. 49.854 (2) (b), less any amount specified under par. (d), exceeds the lump sum payment, the department of employee trust funds, the retirement system of any 1st class city, any retirement system established under chapter 201, laws of 1937, or the administrator of any other pension plan shall deduct the entire lump sum payment, less any withholdings otherwise required by law. The amount deducted under this paragraph shall be remitted to the department of workforce development.
SECTION 613. 49.852 (4) (c) of the statutes is amended to read:
49.852 (4) (c) A directive to the department of employee trust funds, the retirement system of any 1st class city, any retirement system established under chapter 201, laws of 1937, or the administrator of any other pension plan to withhold the amount specified in the statewide support lien docket under s. 49.854 (2) (b) under this section does not prohibit the department of workforce development from attempting to recover the amount through other legal means.
SECTION 614. 49.852 (4) (d) of the statutes is amended to read:
49.852 (4) (d) The department of workforce development shall promptly notify the department of employee trust funds, the retirement system of any 1st class city, any retirement system established under chapter 201, laws of 1937, or the administrator of any other pension plan upon recovery of any amount previously specified in the statewide support lien docket under s. 49.854 (2) (b).
SECTION 615. 49.853 (1) (b) of the statutes is amended to read:
49.853 (1) (b) "Department" means the department of workforce development children and families.
SECTION 616. 49.854 (1) (a) of the statutes is amended to read:
49.854 (1) (a) "Department" means the department of workforce development children and families.
SECTION 617. 49.854 (11) (b) of the statutes is amended to read:
49.854 (11) (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 (3) 20.437 (2) (ja).
SECTION 618. 49.855 (1) of the statutes is amended to read:
49.855 (1) If a person obligated to pay child support, family support, maintenance, or the receiving and disbursing fee under s. 767.57 (1e) (a) is delinquent in making any of those payments, or owes an outstanding amount that has been ordered by the court for past support, medical expenses, or birth expenses, upon application under s. 59.53 (5) the department of workforce development children and families shall certify the delinquent payment or outstanding amount to the department of revenue and, at least annually, shall provide to the department of revenue any certifications of delinquencies or outstanding amounts that it receives from another state because the obligor resides in this state.
SECTION 619. 49.855 (2r) of the statutes is created to read:
49.855 (2r) At least annually, the department of children and families shall certify to the department of revenue any obligation owed to that department under s. 49.345 if the obligation is rendered to a judgment.
SECTION 620. 49.855 (3) of the statutes is amended to read:
49.855 (3) Receipt of a certification by the department of revenue shall constitute a lien, equal to the amount certified, on any state tax refunds or credits owed to the obligor. The lien shall be foreclosed by the department of revenue as a setoff under s. 71.93 (3), (6), and (7). When the department of revenue determines that the obligor is otherwise entitled to a state tax refund or credit, it shall notify the obligor that the state intends to reduce any state tax refund or credit due the obligor by the amount the obligor is delinquent under the support, maintenance, or receiving and disbursing fee order or obligation, by the outstanding amount for past support, medical expenses, or birth expenses under the court order, or by the amount due under s. 46.10 (4), 49.345 (4), or 301.12 (4). The notice shall provide that within 20 days the obligor may request a hearing before the circuit court rendering the order under which the obligation arose. Within 10 days after receiving a request for hearing under this subsection, the court shall set the matter for hearing. Pending further order by the court or a circuit court commissioner, the department of workforce development children and families or its designee, whichever is appropriate, is prohibited from disbursing the obligor's state tax refund or credit. A circuit court commissioner may conduct the hearing. The sole issues at that hearing shall be whether the obligor owes the amount certified and, if not and it is a support or maintenance order, whether the money withheld from a tax refund or credit shall be paid to the obligor or held for future support or maintenance, except that the obligor's ability to pay shall also be an issue at the hearing if the obligation relates to an order under s. 767.51 (3) (e) 1. or 767.62 (4) (d) 1. s. 767.89 (3) (e) 1. or 767.805 (4) (d) 1. or 767.89 (3) (e) 1. and the order specifies that the court found that the obligor's income was at or below the poverty line established under 42 USC 9902 (2).
SECTION 621. 49.855 (4) (a) of the statutes is amended to read:
49.855 (4) (a) The department of revenue shall send the portion of any state tax refunds or credits withheld for delinquent child or family support or maintenance or past support, medical expenses, or birth expenses to the department of workforce development children and families or its designee for deposit in the support collections trust fund under s. 25.68 and shall send the portion of any state tax refunds or credits withheld for delinquent receiving and disbursing fees to the department of workforce development children and families or its designee for deposit in the appropriation account under s. 20.445 (3) 20.437 (2) (ja). The department of workforce development children and families shall make a settlement at least annually with the department of revenue. The settlement shall state the amounts certified, the amounts deducted from tax refunds and credits, and the administrative costs incurred by the department of revenue.
SECTION 622. 49.855 (4) (b) of the statutes is amended to read:
49.855 (4) (b) The department of administration shall send the portion of any federal tax refunds or credits received from the internal revenue service that was withheld for delinquent child or family support or maintenance or past support, medical expenses, or birth expenses to the department of workforce development children and families or its designee for deposit in the support collections trust fund under s. 25.68 and shall send the portion of any federal tax refunds or credits received from the internal revenue service that was withheld for delinquent receiving and disbursing fees to the department of workforce development children and families or its designee for deposit in the appropriation account under s. 20.445 (3) 20.437 (2) (ja).
SECTION 623. 49.855 (4m) (b) of the statutes is amended to read:
49.855 (4m) (b) The department of revenue may provide a certification that it receives under sub. (1), (2m), or (2p), or (2r) to the department of administration. Upon receipt of the certification, the department of administration shall determine whether the obligor is a vendor or is receiving any other payments from this state, except for wages, retirement benefits, or assistance under s. 45.352, 1971 stats., s. 45.40 (1), this chapter, or ch. 46, 108, or 301. If the department of administration determines that the obligor is a vendor or is receiving payments from this state, except for wages, retirement benefits, or assistance under s. 45.352, 1971 stats., s. 45.40 (1), this chapter, or ch. 46, 108, or 301, it shall begin to withhold the amount certified from those payments and shall notify the obligor that the state intends to reduce any payments due the obligor by the amount the obligor is delinquent under the support, maintenance, or receiving and disbursing fee order or obligation, by the outstanding amount for past support, medical expenses, or birth expenses under the court order, or by the amount due under s. 46.10 (4), 49.345 (4), or 301.12 (4). The notice shall provide that within 20 days after receipt of the notice the obligor may request a hearing before the circuit court rendering the order under which the obligation arose. An obligor may, within 20 days after receiving notice, request a hearing under this paragraph. Within 10 days after receiving a request for hearing under this paragraph, the court shall set the matter for hearing. A circuit court commissioner may conduct the hearing. Pending further order by the court or circuit court commissioner, the department of workforce development children and families or its designee, whichever is appropriate, may not disburse the payments withheld from the obligor. The sole issues at the hearing are whether the obligor owes the amount certified and, if not and it is a support or maintenance order, whether the money withheld shall be paid to the obligor or held for future support or maintenance, except that the obligor's ability to pay is also an issue at the hearing if the obligation relates to an order under s. 767.51 (3) (e) 1. or 767.62 (4) (d) 1. s. 767.89 (3) (e) 1. or 767.805 (4) (d) 1. or 767.89 (3) (e) 1. and the order specifies that the court found that the obligor's income was at or below the poverty line established under 42 USC 9902 (2).
SECTION 624. 49.855 (4m) (c) of the statutes is amended to read:
49.855 (4m) (c) Except as provided by order of the court after hearing under par. (b), the department of administration shall continue withholding until the amount certified is recovered in full. The department of administration shall transfer the amounts withheld under this paragraph to the department of workforce development children and families or its designee, the department of health and family services, or the department of corrections, whichever is appropriate. The department of workforce development children and families or its designee shall deposit amounts withheld for delinquent child or family support, maintenance, or receiving and disbursing fees or past support, medical expenses, or birth expenses in the appropriation account under s. 20.445 (3) 20.437 (2) (kp).
SECTION 625. 49.855 (5) of the statutes is amended to read:
49.855 (5) Certification of an obligation to the department of revenue does not deprive any party of the right to collect the obligation or to prosecute the obligor. The department of workforce development children and families or its designee shall immediately notify the department of revenue of any collection of an obligation that has been certified to the department of revenue.
SECTION 626. 49.856 (1) (b) of the statutes is amended to read:
49.856 (1) (b) "Department" means the department of workforce development children and families.
SECTION 627. 49.857 (1) (cf) of the statutes is created to read:
49.857 (1) (cf) "Department" means the department of children and families.
SECTION 628. 49.857 (1) (f) of the statutes is amended to read:
49.857 (1) (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.
SECTION 629. 49.857 (2) (a) of the statutes is amended to read:
49.857 (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.
SECTION 630. 49.857 (2) (b) (intro.) of the statutes is amended to read:
49.857 (2) (b) (intro.) 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:
SECTION 631. 49.857 (2) (b) 2. (intro.) of the statutes is amended to read:
49.857 (2) (b) 2. (intro.) Procedures that the department of workforce development shall use for doing all of the following:
SECTION 632. 49.857 (2) (b) 2. a. of the statutes is amended to read:
49.857 (2) (b) 2. 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 children and families with respect to an individual who holds or applied for a credential granted by the credentialing board.
SECTION 633. 49.857 (2) (b) 3. c. of the statutes is amended to read:
49.857 (2) (b) 3. c. Issuing or reinstating a license if the department of workforce development children and families 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 children and families 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.
SECTION 634. 49.857 (2) (b) 5. of the statutes is amended to read:
49.857 (2) (b) 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.
