AB100: Bill Text

AB100,856,5 5. A benefit association, insurance company, safe deposit company, money market mutual fund or similar entity authorized to do business in this state.

AB100,856,6 (d) "Obligor" has the meaning given in s. 49.854 (1) (d).

AB100,856,7 (e) "Support" has the meaning given in s. 49.854 (1) (f).

AB100,856,13 (2) Financial record matching program and agreements. The department shall operate a financial record matching program under this section, consisting of the components described in subs. (3) to (5). The department shall promulgate rules specifying procedures under which the department shall enter into agreements with financial institutions doing business in this state to operate the financial record matching program under this section.

AB100,856,24 (3) Provision of information regarding delinquent payments and amounts. The department shall provide to a financial institution with which it has an agreement under sub. (2) information regarding all certifications of delinquent support that the department provides to the department of revenue under s. 49.855. The information shall be provided at least once each calendar quarter and shall include the amount of support owed, as well as the obligor's name, address of record and social security number or other taxpayer identification number. The information shall be provided to the financial institution in the manner specified by rule or by agreement. To the extent feasible, the information required under this subsection shall be provided to the financial institution by an automated data exchange.

AB100,857,10 (4) Required matching. Each financial institution receiving information under sub. (3) shall take actions necessary to determine whether any obligor maintains an account at the financial institution. If the financial institution determines that an obligor has an account at the financial institution, the financial institution shall provide the department with a notice providing the obligor's account information, including the account number and the balance of the account at the time that the record match is made. The notice under this subsection shall be provided in the manner, and shall contain the information, specified by rule or agreement. To the extent feasible, the notice required under this subsection shall be provided to the department by an automated data exchange.

AB100,857,15 (5) Delegation. The department may delegate any powers and duties given to the department under this section to county child support agencies. The department may require financial institutions to provide county child support agencies with any notices that are required under this section to be provided to the department.

AB100, s. 1987 Section 1987. 49.854 of the statutes is created to read:

AB100,857,18 49.854 Liens against property for delinquent support payments. (1) Definitions. In this section:

AB100,857,20 (a) "Department" means the department of industry, labor and job development.

AB100,857,22 (b) "County child support agency" means the county child support agency under s. 59.53 (5).

AB100,857,23 (c) "Levy" means all powers of distraint and seizure.

AB100,857,24 (d) "Obligor" means a person who is obligated to pay court-ordered support.

AB100,858,3 (e) "Property" includes real and personal property, tangible and intangible property and rights to property, but is limited to property and rights to property existing at the time of levy.

AB100,858,4 (f) "Support" means any of the following:

AB100,858,5 1. Child or family support.

AB100,858,6 2. Maintenance.

AB100,858,7 3. Medical expenses of a child.

AB100,858,8 4. Birth expenses.

AB100,858,9 5. Any accrued interest on delinquent amounts under subds. 1. to 4.

AB100,858,15 (2) Creation of lien; satisfaction. (a) Creation. If a person obligated to pay support fails to pay any court-ordered amount of support, that amount is a lien in favor of the department upon all property of the person. The lien is effective at the time that the support is due and shall continue until the liability for the amount owed is satisfied. The lien is perfected by being included in a support lien docket under par. (b).

AB100,858,22 (b) Support lien docket. At least annually, the department shall provide to each clerk of circuit court a statewide listing of all certifications of delinquent support that the department provides to the department of revenue under s. 49.855. The department shall also provide the listing to each state agency that titles personal property. Upon receiving a listing under this paragraph, a clerk of court shall promptly file the listing. The list constitutes a support lien docket in the office of each clerk of circuit court. Each entry shall contain at least the following information:

AB100,858,23 1. The name of the obligor.

AB100,858,24 2. The social security number of the obligor.

AB100,858,25 3. Any county in which support owed by the obligor is of record.

AB100,859,1 4. The case number of each matter in which support is owed.

AB100,859,5 (c) Updating support lien dockets. A clerk of circuit court shall discard a list under par. (b) when a new list is received from the department to replace the previous list. The clerk of circuit court shall add or delete an entry in a support lien docket in response to the directions of the department or a court.

AB100,859,16 (d) Amount of lien; satisfaction. The amount of any support obligation that is a lien under this subsection may be determined by requesting that information from the clerk of circuit court or county child support agency for the county in which the support owed by the obligor is of record. Payment of the full amount that is delinquent at the time of payment to that clerk extinguishes that lien. Upon request, the clerk shall furnish to the payer of the delinquent amount a satisfaction of lien showing that the amount of support owed has been paid in full and that the person no longer owes any support with respect to the case number of the matter for which the amount was paid. The satisfaction of lien may be recorded in the office of the register of deeds for any county in which real and personal property of the person who owed the support is located.

AB100,860,4 (3) Notification and appeal of automatic lien. (a) Notice and hearing. When a delinquent support obligation is included in a listing provided to county clerks of court under sub. (2) (b), the department shall provide notice to the obligor that a lien exists with respect to the delinquent support obligation. The notice shall inform the obligor that the lien is in effect and that the obligor may, within a 20-day period, by motion, request a court hearing on the issue of whether support is owed by the obligor. If the obligor makes a timely request for a hearing under this subsection, the court or family court commissioner shall schedule a hearing within 10 business days after the date of the request. If, at the hearing, the obligor establishes that the lien is not proper because of a mistake of fact, the court or family court commissioner shall direct that that the lien be withdrawn from the support lien dockets of all clerks of circuit court and shall direct the department not to include the lien in future listings provided under sub. (2) (b).

AB100,860,11 (b) Appeal. If a family court commissioner conducts the hearing under par. (a), the department or the obligor may, within 15 business days after the date of the decision by the family court commissioner, request review of the decision by the court having jurisdiction over the action. The court conducting the review may order that the lien be withdrawn from the support lien dockets of all clerks of circuit court. If no appeal is sought or the court does not order the withdrawal of the lien, the department may take appropriate actions to enforce the lien.

AB100,860,19 (4) Powers of levy and distraint; generally. If any obligor neglects or refuses to pay the support owed by the obligor after the department has made demand for payment, the department may collect that support and the levy fees and costs under sub. (11) by levy upon any property belonging to the obligor as provided in subs. (5) to (7). Whenever the value of any property that has been levied upon under this subsection is not sufficient to satisfy the claim of the department, the department may levy upon any additional property of the obligor until the support owed and levy costs are fully paid.

AB100,860,20 (5) Levying against financial accounts. (a) Definitions. In this subsection:

AB100,860,21 1. "Account" has the meaning given in s. 49.853 (1) (a).

AB100,860,22 2. "Financial institution" has the meaning given in s. 49.853 (1) (c).

AB100,861,4 (b) Freezing of accounts. To enforce a lien under this section by levying against an account at a financial institution, the department shall send a notice to the financial institution instructing the financial institution to prohibit the closing of or withdrawals from one or more accounts that the obligor owns in whole or in part, up to a total amount that is sufficient to pay the support owed, financial institution fees under par. (c) and estimated levy fees and costs under sub. (11), until further notice from the department or a court.

AB100,861,11 (c) Financial institution fees. In addition to the levy fee authorized under sub. (11) (a), a financial institution may collect any early withdrawal penalty incurred under the terms of an account as a result of the levy. Financial institution fees authorized under this paragraph may be charged to the account immediately prior to the levy against the account under par. (e) and may be charged even if the amounts in the obligor's accounts are insufficient to pay the total amount of support owed and the department's levy costs under sub. (11) (b).

AB100,861,17 (d) Notice of intent to levy. No later than the next business day after the department sends notice to the financial institution under par. (b), the department shall send a notice of intent to levy to the obligor. The department shall also send a notice to any other person in whose name the account is held. The notices required under this paragraph shall be in the form determined by the department, however the notice sent to the obligor must include language stating all of the following:

AB100,861,18 1. That the obligor has been certified as delinquent in paying support.

AB100,861,19 2. The amount of the support owed.

AB100,861,21 3. The financial institution to which the department sent the notice under par. (b).

AB100,861,25 4. That one or more accounts owned in whole or in part by the obligor at the financial institution have been frozen, up to a total amount that is sufficient pay the support owed, the department's levy costs and financial institution fees, until further notice from the department.

AB100,862,3 5. That, unless the obligor requests a hearing within 20 business days after the date of the notice, the department may direct the financial institution to pay moneys from one or more of the obligor's accounts to the department to pay the support owed.

AB100,862,5 6. The address to which the request for hearing must be mailed or delivered in order to schedule a hearing.

AB100,862,14 (e) Notice of levy. If the obligor fails to make a timely request for a hearing, the department shall provide the financial institution to which the department sent a notice under par. (b) with a notice of levy ordering the financial institution to pay moneys from one or more of the obligor's accounts to the department to pay the support owed. A financial institution receiving a notice of levy under this paragraph shall pay the moneys to the department in the manner, and within the time, specified by rule or by agreement. If the department sends a a notice of levy to a financial institution under this paragraph, the department shall send a copy of the notice of levy to the obligor and to any other person in whose name the account is held.

AB100,862,22 (f) Hearings. A hearing requested under par. (d) 5. shall be conducted before the circuit court rendering the order to pay support. Within 10 business days after receiving a request for hearing under par. (d) 5., the court shall set the matter for hearing. The family court commissioner may conduct the hearing. The sole issue at the hearing shall be whether the obligor owes the amount of support certified. After a decision in the hearing is issued, the department shall either send a notice of levy to the financial institution under par. (e) ordering payment of the amount of support owed or instructing the financial institution to release the accounts.

AB100,863,5 (6) Levying against other personal property. (a) When notice of seizure required. If the department has enforced a lien under this section by levying against personal property, the department shall immediately notify the obligor that the property has been seized. The department shall provide the notice of seizure under this paragraph to any person known to have a lien on the property and, if the property is titled, to the state agency that titles the property. A state agency receiving a notice under this paragraph may not transfer title to the personal property described in the notice, except on the instructions of a court or the department.

AB100,863,7 (b) Content of notice of seizure. The notice provided under par. (a) shall include all of the following:

AB100,863,8 1. The name of the obligor and the amount of the support owed.

AB100,863,9 2. A description of the personal property seized.

AB100,863,12 3. A statement that the obligor may, within 20 business days after the date of the notice, request a hearing on the questions of whether past-due support is owed and whether the property was wrongfully seized.

AB100,863,14 4. A statement that the hearing may be requested by filing a motion with the court issuing the order to pay the support.

AB100,864,4 (c) Hearing. If a hearing is requested under par. (b) 4., the court or family court commissioner shall schedule a hearing within 10 business days after receiving the request under par. (b) 4. If, at the hearing, the obligor establishes that the seizure of the personal property was not proper because of a mistake of fact, the court or family court commissioner shall direct that the department or its designee return the seized personal property within 15 business days. 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 made 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 to return the seized property or may authorize the sale of the property by the department. If the department is ordered to return seized property under this paragraph, the court shall instruct any state agency responsible for titling the property that it may transfer title to the property without receiving instructions from a court or the department under par. (a).

AB100,864,8 (d) Notice of sale. As soon as practicable after seizing the personal property and after any requested hearings are conducted under par. (c), the department shall send a notice to the obligor indicating when and where the property will be sold. The department shall publish or post the time and date of sale.

AB100,864,14 (e) Redemption. At any time after receiving the notice of sale under par. (d), but before the property is sold, the obligor may redeem the property by paying the total past-due support owed together with any levy fees and costs under sub. (11). If the obligor redeems the property, the department shall instruct the titling agency that the agency may transfer title to the property without receiving instructions from a court or the department under par. (a).

AB100,864,20 (f) Sale. The date of sale must be no more than 60 days after the date of the notice of sale under par. (d). The department shall give the purchaser of property under this paragraph a certificate of sale upon payment in full of the purchase price. If the property seized and sold is titled property, the department shall direct the state agency that titled the property to transfer the title of the property to the purchaser of the property.

AB100,864,24 (7) Levying against real property. (a) When notice of intent to levy required. To enforce a lien under this section by levying against real property, the department shall provide the obligor with a notice of intent to levy. The notice shall be provided to any persons known to have a lien against the real property.

AB100,865,2 (b) Content of notice of intent. The notice provided under par. (a) shall include all of the following:

AB100,865,3 1. The name of the obligor and the amount of the support owed.

AB100,865,5 2. A description of the real property against which the department intends to levy.

AB100,865,7 3. 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.

AB100,865,9 4. A statement that the hearing may be requested by filing a motion with the court issuing the order to pay the support.

AB100,865,12 5. In notices being provided to known lienholders, a request that the lienholder notify the department, within 10 days after receiving the notice under par. (a), of the amount of the lienholder's lien on the property.

AB100,865,23 (c) Hearing. If a hearing is requested under par. (b) 4., the court or family court commissioner shall schedule a hearing within 10 business days after receiving the request under par. (b) 4. If, at the hearing, the obligor establishes that enforcing a lien against the real property would not be proper because of a mistake of fact, the court or family court commissioner shall direct the department not to proceed with the levy. 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 made his or her decision, request review of the decision by the court with jurisdiction over the action. The court reviewing the decision may direct the department not to proceed with the levy or may authorize the sale of the property by the department.

AB100,866,13 (d) Final notice. Unless the department has been directed not to proceed with the levy in a hearing under par. (c) or unless the obligor has paid the support owed and any levy fees and costs under sub. (11), 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 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 may not issue or transfer a deed for the property, except on the instructions of a court or the department.

AB100,867,2 (e) Sale. The department shall publish a class 1 notice, under ch. 985, in the county where the property is to be seized within 60 days after issuing the final notice under par. (d). The obligor may redeem the property prior to the date of sale by paying the full amount of support owed together with any levy fees and costs under sub. (11). The department may proceed with the sale 30 days after the notice is posted or published, unless the obligor has redeemed the property. If the obligor has failed to redeem the property and has failed to vacate the property prior to the date specified in the final notice, the department may issue an administrative order directing a local law enforcement agency or official to escort the obligor and any other residents off the property. The department may establish procedures for conducting sales of property under this paragraph. The department shall instruct the county register of deeds in the county where the property is located to issue a deed to any person purchasing property sold under this paragraph.

AB100,867,8 (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 or execution under any judicial process.

AB100,867,11 (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.

AB100,867,15 (10) Failure to surrender; enforcement of levy. (a) Proceedings against obligor. Any obligor 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.

AB100,867,21 (b) Proceedings against 3rd parties. A 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 paragraph for more than 25% of the support owed. The department shall issue a determination to the 3rd party for the amount of the liability.

AB100,868,2 (c) Surrender and discharge. 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 obligor with respect to the property or rights to the property arising from the surrender or payment to the department.

AB100,868,5 (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.

AB100,868,11 (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 (1) (L).

AB100,868,15 (12) Use of proceeds. (a) Priorities. 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).

AB100,868,18 (b) 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.

AB100,868,22 (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.

AB100,869,2 (b) Settlement. If the county child support agency accepts a plan for the payment of support owed by an obligor, the department shall suspend all actions to enforce a lien under this section as long as the obligor remains in compliance with the payment plan.

AB100,869,6 (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.

AB100,869,22 (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.

AB100,870,2 (b) Remedies. In an action under par. (a), 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.

AB100,870,5 (c) Validity of determination. For purposes of an adjudication under this subsection, the support obligation upon which the lien is based is conclusively presumed to be valid.

AB100,870,11 (16) Restriction on employment penalties by reason of levy. 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 property has been subject to levy for any one levy or because of compliance with any provision of this section. Whoever wilfully violates this subsection may be fined not more than $1,000 or imprisoned for not more than one year or both.

AB100,870,15 (17) Delegation. 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) and any final notice provided under sub. (7) (d).

AB100,870,17 (18) Preservation of remedies. The availability of the remedies under this section does not abridge the right of the department to pursue other remedies.

AB100, s. 1988 Section 1988. 49.855 (1) of the statutes is amended to read:

AB100,871,2 49.855 (1) If a person obligated to provide child support, family support or maintenance is delinquent in making court-ordered payments, or owes an outstanding amount that has been ordered by the court for past support, medical expenses or birth expenses, the clerk of circuit court or county support collection designee under s. 59.07 (97m) 59.53 (5m), whichever is appropriate, upon application of the county designee under s. 59.53 (5) or the department of industry, labor and job development, shall certify the delinquent payment or outstanding amount to the department of industry, labor and job development.

AB100, s. 1989 Section 1989 . 49.855 (1) and (2) of the statutes, as affected by 1997 Wisconsin Act .... (this act), are consolidated, renumbered 49.855 (1) and amended to read:

AB100,871,16 49.855 (1) If a person obligated to provide child support, family support or maintenance is delinquent in making court-ordered payments, or owes an outstanding amount that has been ordered by the court for past support, medical expenses or birth expenses, the clerk of circuit court or county support collection designee under s. 59.53 (5m), whichever is appropriate, upon application of the county designee under s. 59.53 (5) or the department of industry, labor and job development, shall certify the delinquent payment or outstanding amount to the department of industry, labor and job development. (2) At least annually, the department of industry, labor and job development revenue and, at least annually, shall provide to the department of revenue the certifications that it receives under sub. (1) and any certifications of delinquencies or outstanding amounts that it receives from another state because the obligor resides in this state.