2011 - 2012 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO 2011 ASSEMBLY BILL 182
December 27, 2011 - Offered by Representative Jacque.
1An Act to renumber and amend
66.0809 (3); to amend
66.0809 (5) (b) 1., 2
66.0809 (5) (d) and 565.30 (5r) (b); and to create
66.0809 (3) (c), 66.0809 (6) and 3
800.09 (1m) of the statutes; relating to: assignment of income, prizes, and
4earnings to pay a municipal court judgment and the collection and reporting by
5municipal electric or water utilities of certain utility arrearages on rental
Analysis by the Legislative Reference Bureau
Under current law, if a person fails to pay a judgment ordered by a municipal
court, the court may do any of the following:
1. Defer any payment of the judgment for a period of time.
2. Allow the person to pay the judgment by making installment payments.
3. Order the person to perform community service work in lieu of paying the
4. Suspend the person's driving privileges until the judgment is paid, including
taking possession of the person's license to drive.
This substitute amendment provides the court with another option by allowing
the court to issue an order assigning not more than 25 percent of the person's
earnings, worker's compensation, pension, and other money due to the person, but
not including lottery prizes, to pay an unpaid judgment.
Under current law, a municipal utility may collect arrearages for utility service
provided to lots or parcels of real estate by providing, on October 15, a written notice
of payment due to the owner or occupant of the real estate. The notice must specify
the amount of the arrearage and any penalty and must state the following: 1) that,
if payment is not received by November 1, an additional penalty will be assessed; and
2) that, if payment is not received by November 15, the arrearage amount and any
penalties will become a lien on the property that will be collected as a tax on the
Also under current law, if a municipal utility provides electric or water service
to a rental dwelling unit, the municipal utility may use the arrearage collection
procedure described above only if the municipal utility follows certain additional
procedures for notifying both the owner and the tenant about any payments that are
past due. In addition, the municipal utility may use the arrearage collection
procedure only if the owner of the rental property provides the municipal utility with
written notification of the name and address of the owner, as well as of the tenant
who is responsible for paying for the service. Finally, if requested by the municipal
utility, the owner must provide the municipal utility with a copy of the rental or lease
agreement in which the tenant assumes responsibility for payment of utility charges.
This substitute amendment provides that, if the municipal utility uses the
arrearage collection procedure on a rental dwelling unit, the utility must report the
arrearage and the name and last-known address of the tenant who incurred the
past-due amounts on the consolidated court automation program case management
system when the past-due amounts become a lien on the rental property. Under the
substitute amendment, the owner of the rental property may commence an action in
municipal court to collect the past-due amount from the tenant.
The substitute amendment also permits a municipal utility that provides
service to a tenant of a rental dwelling unit to collect an advance payment from the
tenant as a condition of receiving utility service. The municipal utility must deposit
the advance in an interest-bearing account and must return the advance payment
and any accrued interest (less any deduction for unpaid utility bills) within 21 days
after service is terminated.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB182-ASA1, s. 1
66.0809 (3) of the statutes is renumbered 66.0809 (3) (a) and 2
amended to read:
(a) Except as provided in subs. (4) and (5), on October 15 in each 4
year notice shall be given to the owner or occupant of all lots or parcels of real estate
to which utility service has been furnished prior to October 1 by a public utility 2
operated by a town, city or village and payment for which is owing and in arrears at 3
the time of giving the notice. The department in charge of the utility shall furnish 4
the treasurer with a list of the lots or parcels of real estate for which utility service 5
charges are in arrears, and the notice shall be given by the treasurer, unless the 6
governing body of the city, village or town authorizes notice to be given directly by 7
the department. The notice shall be in writing and shall state the amount of arrears, 8
including any penalty assessed pursuant to the rules of the utility; that unless the 9
amount is paid by November 1 a penalty of 10 percent of the amount of arrears will 10
be added; and that unless the arrears, with any added penalty, are paid by November 11
15, the arrears and penalty will be levied as a tax against the lot or parcel of real 12
estate to which utility service was furnished and for which payment is delinquent. 13
The notice may be served by delivery to either the owner or occupant personally, or 14
by letter addressed to the owner or occupant at the post-office address of the lot or 15
parcel of real estate. On November 16 the officer or department issuing the notice 16
shall certify and file with the clerk a list of all lots or parcels of real estate, giving the 17
legal description, for which notice of arrears was given and for which arrears remain 18
unpaid, stating the amount of arrears and penalty. Each delinquent amount, 19
including the penalty, becomes a lien upon the lot or parcel of real estate to which the 20
utility service was furnished and payment for which is delinquent, and the clerk 21
shall insert the delinquent amount and penalty as a tax against the lot or parcel of 22
real estate. All proceedings in relation to the collection of general property taxes and 23
to the return and sale of property for delinquent taxes apply to the tax if it is not paid 24
within the time required by law for payment of taxes upon real estate.
this subsection, if an arrearage is for utility service furnished and 2
metered by the utility directly to a manufactured home or mobile home unit in a 3
licensed manufactured and mobile home community, the notice shall be given to the 4
owner of the manufactured home or mobile home unit and the delinquent amount 5
becomes a lien on the manufactured home or mobile home unit rather than a lien on 6
the parcel of real estate on which the manufactured home or mobile home unit is 7
located. A lien on a manufactured home or mobile home unit may be enforced using 8
the procedures under s. 779.48 (2). This In this paragraph, "metered" means the use
9of any method to ascertain the amount of service used or the use of a flat rate billing
subsection does not apply to arrearages collected using the procedure 12
under s. 66.0627. In this subsection, "metered" means the use of any method to
13ascertain the amount of service used or the use of a flat rate billing method.
AB182-ASA1, s. 2
66.0809 (3) (c) of the statutes is created to read:
(c) 1. Under this subsection, if an arrearage is for utility service 16
furnished to a rental dwelling unit and the utility is required to follow the procedures 17
under sub. (5) (b) 1., the municipal public utility shall, when a county within which 18
the dwelling unit is located maintains a case management system, report the 19
arrearage and the name and the last-known address of the tenant who incurred the 20
delinquent amounts on the consolidated court automation program case 21
management system maintained by the director of state courts at the time the 22
delinquent amount becomes a lien upon the lot or parcel of real estate to which the 23
utility service was furnished.
2. The owner of the lot or parcel of real estate to which a lien is attached under 25
subd. 1. may commence an action in municipal court to collect the delinquent
amounts from the tenant who incurred the delinquent amounts using the procedures 2
in ch. 800.
AB182-ASA1, s. 3
66.0809 (5) (b) 1. of the statutes is amended to read:
(b) 1. In order to comply with this subdivision, a municipal public 5
utility shall send bills for water or electric service to a customer who is a tenant in 6
the tenant's own name. Each time that a municipal public utility notifies a customer 7
who is a tenant that charges for water or electric service provided by the utility to 8
the customer are past due for more than one billing cycle, the utility shall also serve 9
a copy of the notice on the owner of the rental dwelling unit in the manner provided 10
in s. 801.14 (2). If a customer who is a tenant vacates his or her rental dwelling unit, 11
and the owner of the rental dwelling unit provides the municipal public utility, no 12
later than 21 days after the date on which the tenant vacates the rental dwelling 13
unit, with a written notice that contains a forwarding address for the tenant and the 14
date that the tenant vacated the rental dwelling unit, the utility shall continue to 15
send past-due notices to the customer at his or her forwarding address until the 16
past-due charges are paid or until notice has been provided under sub. (3) (a)
AB182-ASA1, s. 4
66.0809 (5) (d) of the statutes is amended to read:
(d) If this subsection applies and a municipal public utility is 19
permitted to collect arrearages under sub. (3), the municipal public utility shall 20
provide all notices under sub. (3) (a)
to the owner of the property.
A municipal utility that provides water or electric service to a 23
customer who is a tenant of a rental dwelling unit may require the customer to pay 24
an advance as a condition of receiving the service. A municipal utility shall deposit 25
any advance received under this subsection into an interest-bearing account. When
the customer terminates water or electric service to the rental dwelling unit, the 2
municipal utility shall return the advance and accrued interest, less any deduction 3
for unpaid water or electric utility bills, to the customer within 21 days after the date 4
that service is terminated to the dwelling unit.
AB182-ASA1, s. 6
565.30 (5r) (b) of the statutes is amended to read:
(b) Subject to par. (c), if the administrator receives a notice under 7
s. 778.30 (2) (a), 800.09 (1) (c),
or 973.05 (5) (a) of the assignment of lottery prizes 8
under s. 778.30 (1) (c), 800.09 (1) (c),
or 973.05 (4) (c) and determines that the person 9
subject to the assignment is a winner or assignee of a lottery prize that is payable in 10
installments, the administrator shall withhold the amount of the judgment that is 11
the basis of the assignment from the next installment payment. The administrator 12
shall submit the withheld amount to the court that issued the assignment. At the 13
time of the submittal, the administrator shall charge the administrative expenses 14
related to that withholding and submittal to the winner or assignee of the lottery 15
prize and withhold those expenses from the balance of the installment payment. The 16
administrator shall notify the winner or assignee of the reason that the amount is 17
withheld from the installment payment. If the initial installment payment is 18
insufficient to pay the judgment and administrative expenses, the administrator 19
shall withhold and submit to the court an amount from any additional installment 20
payments until the judgment and administrative expenses are paid in full and the 21
assignment is no longer in effect. The administrative expenses received by the 22
department shall be credited to the appropriation under s. 20.566 (1) (h).
(a) In this subsection, "employer" includes the state and the 25
political subdivisions of the state.
(b) The court may issue an order assigning not more than 25 percent of the 2
defendant's commissions, earnings, salaries, wages, pension benefits, benefits under 3
ch. 102, and other money due or to be due in the future, but not including lottery 4
prizes, to the municipal court for payment of the unpaid restitution, forfeiture, costs, 5
fees, or surcharges.
(c) Upon entry of the assignment under par. (b), unless the court finds that 7
income withholding is likely to cause the defendant irreparable harm, the court shall 8
provide notice of the assignment by regular mail to the last-known address of the 9
person from whom the defendant receives or will receive money. If the municipal 10
court does not receive the money from the person notified, the court shall provide 11
notice of the assignment to any other person from whom the defendant receives or 12
will receive money. Notice of an assignment under par. (b) shall inform the intended 13
recipient that, if a prior assignment under par. (b) or s. 778.30 (1) or 973.05 (4) has 14
been received relating to the same defendant, the recipient is required to notify the 15
municipal court that sent the subsequent notice of assignment that another 16
assignment has already been received. A notice of assignment shall include a form 17
permitting the recipient to designate on the form that another assignment has 18
already been received.
(d) Notice under this subsection may be a notice of the court, a copy of the 20
executed assignment or a copy of that part of the court order that directs payment.
(e) For each payment made under the assignment under par. (b), the person 22
from whom the defendant under the order receives money shall receive an amount 23
equal to the person's necessary disbursements, not to exceed $3, which shall be 24
deducted from the money to be paid to the defendant.
(f) A person who receives notice of the assignment under this subsection shall 2
withhold the amount specified in the notice from any money that person pays to the 3
defendant later than one week after receipt of the notice of assignment. Within 5 4
days after the day on which the person pays money to the defendant, the person shall 5
send the amount withheld to the municipal court of the jurisdiction providing notice. 6
If the person has already received a notice of an assignment under this subsection 7
or s. 778.30 (2) or 973.05 (5), the person shall retain the later assignment and 8
withhold the amount specified in that assignment after the last of any prior 9
assignments is paid in full. Within 10 days of receipt of the later notice, the person 10
shall notify the municipal court that sent the notice that the person has received a 11
prior notice of an assignment under par. (b). Section 241.09 does not apply to 12
assignments under this subsection.
(g) If after receipt of notice of assignment under this subsection the person from 14
whom the defendant receives money fails to withhold the money or send the money 15
to the municipal court as provided in this subsection, the person may be proceeded 16
against under the principal action under s. 800.12 for contempt of court or may be 17
proceeded against under ch. 778 and be required to forfeit not less than $50 nor more 18
than an amount, if the amount exceeds $50, that is equal to 1 percent of the amount 19
not withheld or sent.
(h) If an employer who receives notice of an assignment under this subsection 21
fails to notify the municipal court within 10 days after an employee is terminated or 22
otherwise temporarily or permanently leaves the employer's employment, the 23
employer may be proceeded against under the principal action under s. 800.12 for 24
contempt of court.
(i) Compliance by the person from whom the defendant receives money with 2
the order operates as a discharge of the person's liability to the defendant as to that 3
portion of the defendant's commissions, earnings, salaries, wages, benefits, or other 4
money so affected.
(j) No employer may use an assignment under par. (b) as a basis for the denial 6
of employment to a defendant, the discharge of an employee, or any disciplinary 7
action against an employee. An employer who denies employment or discharges or 8
disciplines an employee in violation of this paragraph may be subject to a forfeiture 9
of not more than $500 and may be required to make full restitution to the aggrieved 10
person, including reinstatement and back pay. Restitution shall be in accordance 11
with s. 973.20. An aggrieved person may apply to the district attorney or to the 12
department of workforce development for enforcement of this paragraph.
(k) 1. In this paragraph, "payroll period" has the meaning given in s. 71.63 (5).
2. If after an assignment is in effect the defendant's employer changes its 15
payroll period, or the defendant changes employers and the new employer's payroll 16
period is different from the former employer's payroll period, the municipal court 17
may amend the withholding assignment or order so that the withholding frequency 18
corresponds to the new payroll period and the amounts to be withheld reflect the 19
adjustment to the withholding frequency.
(L) The municipal court shall provide notice of the amended withholding 21
assignment or order under par. (k) by regular mail to the defendant's employer and 22
to the defendant.
The treatment of section 66.0809 (5) (b) 1., (d), and (e) of the statutes, the 25
renumbering and amendment of section 66.0809 (3) of the statutes, and the creation
of section 66.0809 (3) (c) of the statutes first apply to arrearages incurred on the 2
effective date of this subsection.
(2) The treatment of section 66.0809 (6) of the statutes first applies to a 4
customer who requests water or electric service on the first day of the 2nd month 5
beginning after publication.
The treatment of sections 565.30 (5r) (b) and 800.09 (1m) of the statutes first 7
applies to judgments entered on the effective date of this subsection.
AB182-ASA1, s. 9
This act takes effect on the day after publication, 9
except as follows:
The treatment of sections 565.30 (5r) (b) and 800.09 (1m) of the statutes and 11Section
8 (3) of this act take effect on the first day of the 4th month beginning after 12