AB342: Bill Text

AB342, s. 2 Section 2. 71.78 (4) (g) of the statutes is amended to read:

AB342,2,12 71.78 (4) (g) Employes of this state, to the extent that the department of revenue deems the examination necessary for the employes to perform their duties under contracts or agreements between the department and any other department, division, bureau, board or commission of this state relating to the administration of tax laws, collection of debts under s. 71.93 or child and spousal support enforcement under s. 46.25.

AB342, s. 3 Section 3. 71.78 (9) of the statutes is amended to read:

AB342,2,16 71.78 (9) (title) Disclosure of debtor address to state agency. The department of revenue may supply the address of a debtor to an a state agency or a political subdivision certifying a debt of that debtor for setoff under s. 71.93.

AB342, s. 4 Section 4. 71.88 (1) (a) of the statutes is amended to read:

AB342,3,5 71.88 (1) (a) Contested assessments and claims for refund. Except for refunds set off certified for setoff under s. 71.93 in respect to which appeal is to the state agency to which the debt is owed and except for refunds set off certified for setoff under s. 46.255, 345.47 (1d) or 800.09 (1m) in respect to which a hearing is may be held before the circuit a court, any person feeling aggrieved by a notice of additional assessment, refund, or notice of denial of refund may, within 60 days after receipt of the notice, petition the department of revenue for redetermination. A petition or an appeal by one spouse is a petition or an appeal by both spouses. The department shall make a redetermination on the petition within 6 months after it is filed.

AB342, s. 5 Section 5. 71.93 (title) of the statutes is amended to read:

AB342,3,7 71.93 (title) Setoffs for other state agencies.

AB342, s. 6 Section 6. 71.93 (1) (a) 4. of the statutes is created to read:

AB342,3,10 71.93 (1) (a) 4. An unpaid judgment certified by a political subdivision under s. 345.47 (1d) or 800.09 (1m).

AB342, s. 7 Section 7. 71.93 (1) (b) of the statutes is amended to read:

AB342,3,14 71.93 (1) (b) "Debtor" means any a person owing a debt to a state agency and any person who owes a delinquent child support or spousal support obligation to an agency of another state.

AB342, s. 8 Section 8. 71.93 (1) (cm) of the statutes is created to read:

AB342,3,16 71.93 (1) (cm) "Political subdivision" means a county, city, village or town.

AB342, s. 9 Section 9. 71.93 (2) of the statutes is renumbered 71.93 (2) (a).

AB342, s. 10 Section 10. 71.93 (2) (b) of the statutes is created to read:

AB342,3,20 71.93 (2) (b) A political subdivision may certify a debt under s. 345.47 (1d) or 800.09 (1m).

AB342, s. 11 Section 11. 71.93 (3) of the statutes is amended to read:

AB342,4,9 71.93 (3) Administration. In administering this section the department shall first check with the state agency or political subdivision certifying the debt to determine whether the debt has been collected by other means. If the debt remains uncollected the department of revenue shall setoff set off any debt or other amount owed to the department, regardless of the origin of the debt or of the amount, its nature or its date. If after the setoff there remains a refund in excess of $10, the department shall set off the remaining refund against certified debts of other state agencies or political subdivisions. If more than one certified debt exists for any debtor, the refund shall be first set off against the earliest debt certified, except that no child support or spousal support obligation submitted by an agency of another state may be set off until all debts owed to and certified by state agencies or political subdivisions of this state have been set off. When all debts have been satisfied, any remaining refund shall be refunded to the debtor by the department.

AB342, s. 12 Section 12. 71.93 (4) of the statutes is amended to read:

AB342,4,15 71.93 (4) Settlement. Within 30 days after the close of each calendar quarter, the department shall settle with each state agency or political subdivision that has certified a debt. Each settlement shall note the opening balance of debts certified, any additions or deletions, amounts set off and the ending balance at the close of the settlement period.

AB342, s. 13 Section 13. 71.93 (5) of the statutes is amended to read:

AB342,5,2 71.93 (5) (title) State Agency Certifier charged for costs. At the time of each settlement, each state agency shall be charged for administration expenses, and the amounts charged shall be credited to the department's appropriation under s. 20.566 (1) (h). At the time of each settlement, each political subdivision shall be charged for administration expenses, minus the $10 fee submitted by the political subdivision with the certified debt. The $10 fee plus the additional administration expenses charged shall be credited to the appropriation under s. 20.566 (1) (h). Annually on or before November 1, the department shall review its costs incurred during the previous fiscal year in administering state agency setoffs and shall adjust its subsequent charges to each state agency to reflect that experience.

AB342, s. 14 Section 14. 71.93 (6) of the statutes is amended to read:

AB342,5,13 71.93 (6) Written agreement and authority of department. Any state agency or political subdivision wishing to certify debts to the department shall enter into a written agreement with the department prior to any certification of debt. Any certification of debts by a state agency or changes to certified debts shall be in a manner and form prescribed by the department. The secretary of revenue shall be the final authority in the resolution of any interagency disputes in regard to dispute regarding certification of debts a debt or any dispute between the department and a political subdivision regarding certification of a debt. If a refund is adjusted after a setoff, the department may readjust any erroneous settlement with a certifying state agency certifier.

AB342, s. 15 Section 15. 71.93 (7) of the statutes is amended to read:

AB342,5,20 71.93 (7) Exchange of information. Information relative to changes to any debt certified shall be exchanged promptly by each a state agency and or a political subdivision and the department. The exchange of information related to changes in debt, the department setoff of refunds against debts certified by agencies and any reports of the setoff to certifying state agencies certifiers is not a violation of ss. 71.78, 72.06, 77.61 (5), 78.80 (3) and 139.38 (6).

AB342, s. 16 Section 16. 71.93 (8) of the statutes is amended to read:

AB342,6,2 71.93 (8) (title) Setoff agreements. Upon request by a state agency or political subdivision, the department of revenue may enter into an agreement with individuals who owe debts to the state agency. With the consent of the debtor, the department of revenue may arrange with the debtor's employer for the withholding from the debtor's pay of a specified amount to be applied against the debt.

AB342, s. 17 Section 17. 345.47 (1) (e) of the statutes is created to read:

AB342,6,6 345.47 (1) (e) In addition to or in lieu of imprisonment under par. (a) or suspension under par. (b), the court may order the unpaid judgment certified for setoff under sub. (1d).

AB342, s. 18 Section 18. 345.47 (1d) of the statutes is created to read:

AB342,6,9 345.47 (1d) (a) In this subsection, "political subdivision" has the meaning given in s. 71.93 (1) (cm).

AB342,6,14 (b) If a court orders an unpaid judgment certified for setoff under sub. (1) (e), the political subdivision entitled to the forfeiture portion of the judgment shall certify the unpaid judgment to the department of revenue. At the time of certification, the political subdivision shall submit a $10 fee and furnish the defendant's full name, address and social security number to the department of revenue.

AB342,7,3 (c) Receipt of a certification and $10 fee by the department of revenue shall constitute a lien, equal to the amount certified, on any state tax refunds or credits owed to the defendant. The lien shall be foreclosed by the department of revenue as a setoff under s. 71.93. When the department of revenue determines that the defendant is otherwise entitled to a state tax refund or credit, it shall notify the defendant that the state intends to reduce any state tax refund or credit due the defendant by the amount certified and that the department intends to forward that amount to the political subdivision certifying the judgment. The notice shall provide that within 20 days after the date the notice is mailed, the defendant may request a hearing before the court rendering the judgment. Within 10 days after receiving a request for hearing under this paragraph, the court shall set the matter for hearing upon notice to the defendant and to the political subdivision certifying the judgment. The sole issue at that hearing shall be whether the defendant owes the amount certified.

AB342,7,5 (d) Except as provided by court order after a hearing under par. (c), all of the following shall occur:

AB342,7,9 1. Within 60 days after the date the department of revenue mails the notice under par. (c), and subject to the priorities under s. 71.93 (3), the department of revenue shall send any state tax refund or credit withheld to the political subdivision certifying the judgment.

AB342,7,14 2. Within 20 days after the date a political subdivision receives a withheld tax refund or credit, the officer receiving the withheld tax refund or credit shall distribute the amount withheld to the appropriate municipal or county treasurer. If the amount withheld is less than the full amount certified, the officer shall distribute the amount withheld on a proportional basis.

AB342,7,16 3. The department of revenue shall continue withholding until the amount certified is recovered in full.

AB342,7,19 (e) A political subdivision shall immediately notify the department of revenue of any collection of a judgment that has been certified. The department of revenue shall adjust the certified amount to reflect the amount collected.

AB342, s. 19 Section 19. 800.09 (1) (intro.) of the statutes is amended to read:

AB342,8,4 800.09 (1) Judgment. (intro.) If a municipal court finds a defendant guilty it may render judgment by ordering restitution under s. 800.093 and payment of a forfeiture, the penalty assessment imposed by s. 165.87, the jail assessment imposed by s. 302.46 (1) and any applicable domestic abuse assessment imposed by s. 973.055 (1) plus costs of prosecution, including the fee prescribed in s. 814.65 (1). The court shall apply any payment received on a judgment that includes restitution to first satisfy any payment of restitution ordered, then to pay the forfeiture, assessments and costs. If the judgment is not paid, the court may proceed under par. (a), (b) or, (c) or (d) or any combination of those paragraphs, as follows:

AB342, s. 20 Section 20. 800.09 (1) (d) of the statutes is created to read:

AB342,8,7 800.09 (1) (d) The court may order the unpaid judgment certified for setoff under sub. (1m).

AB342, s. 21 Section 21. 800.09 (1m) of the statutes is created to read:

AB342,8,10 800.09 (1m) Certification of unpaid judgments. (a) In this subsection, "political subdivision" has the meaning given in s. 71.93 (1) (cm).

AB342,8,15 (b) If a court orders an unpaid judgment certified for setoff under sub. (1) (d), the political subdivision entitled to the forfeiture portion of the judgment shall certify the unpaid judgment to the department of revenue. At the time of certification, the political subdivision shall submit a fee of $10 and furnish the defendant's full name, address and social security number to the department of revenue.

AB342,9,4 (c) Receipt of a certification and $10 fee by the department of revenue shall constitute a lien, equal to the amount certified, on any state tax refunds or credits owed to the defendant. The lien shall be foreclosed by the department of revenue as a setoff under s. 71.93. When the department of revenue determines that the defendant is otherwise entitled to a state tax refund or credit, it shall notify the defendant that the state intends to reduce any state tax refund or credit due the defendant by the amount certified and that the department intends to forward that amount to the political subdivision certifying the judgment. The notice shall provide that within 20 days after the date the notice is mailed, the defendant may request a hearing before the court rendering the judgment. Within 10 days after receiving a request for hearing under this paragraph, the court shall set the matter for hearing upon notice to the defendant and to the political subdivision certifying the judgment. The sole issue at that hearing shall be whether the defendant owes the amount certified.

AB342,9,6 (d) Except as provided by court order after a hearing under par. (c), all of the following shall occur:

AB342,9,10 1. Within 60 days after the date the department of revenue mails the notice under par. (c), and subject to the priorities under s. 71.93 (3), the department of revenue shall send any state tax refund or credit withheld to the political subdivision certifying the judgment.

AB342,9,15 2. Within 20 days after the date a political subdivision receives a withheld tax refund or credit, the officer receiving the withheld tax refund or credit shall distribute the amount withheld to the appropriate municipal or county treasurer. If the amount withheld is less than the full amount certified, the officer shall distribute the amount withheld on a proportional basis.

AB342,9,17 3. The department of revenue shall continue withholding until the amount certified is recovered in full.

AB342,9,20 (e) A political subdivision shall immediately notify the department of revenue of any collection of a judgment that has been certified. The department of revenue shall adjust the certified amount to reflect the amount collected.

AB342, s. 22 Section 22. Appropriation changes; revenue.

AB342,9,25 (1)  Offset program administration. In the schedule under section 20.005 (3) of the statutes for the appropriation to the department of revenue under section 20.566 (1) (h) of the statutes, as affected by the acts of 1995, the dollar amount is increased by $64,900 for fiscal year 1995-96 and the dollar amount is increased by $1,119,000 for fiscal year 1996-97 to increase the authorized FTE positions for the department by 4.0 PR positions to administer an offset program for unpaid traffic and municipal ordinance violations.

AB342,10,9 (2)  Offset program development costs. In the schedule under section 20.005 (3) of the statutes for the appropriation to the department of revenue under section 20.566 (1) (h) of the statutes, as affected by the acts of 1995, the dollar amount is increased by $3,700 for fiscal year 1995-96 to fund development costs of administering an offset program for unpaid traffic and municipal ordinance violations.

AB342, s. 23 Section 23. Initial applicability.

AB342,10,12 (1)  This act first applies to actions commenced on the effective date of this subsection.

AB342, s. 24 Section 24. Effective date.

AB342,10,14 (1)  This act takes effect on January 1, 1996.

AB342,10,15 (End)