AB651: Bill Text

AB651, s. 65 Section 65. 49.852 of the statutes is created to read:

AB651,43,9 49.852 Delinquent support payments; pension plans. (1) The department of workforce development may direct the department of employe 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 certified under s. 49.855 (1) 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 its certification has either not been appealed or is no longer under appeal.

AB651,43,12 (2) 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 certified under s. 49.855 (1). The notice shall do all of the following:

AB651,43,17 (a) Inform the person that the department of employe 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, shall withhold the amount certified under s. 49.855 (1) from any lump sum payment from a pension plan that may be paid the person.

AB651,43,20 (b) Inform the person that he or she may, within 20 days after the date of the notice, by motion, request a court hearing on the issue of whether the person owes the amount certified under s. 49.855 (1).

AB651,43,23 (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.

AB651,44,14 (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. Within 10 days after receiving a request for a hearing, the court shall set the matter for hearing. The family court commissioner may conduct the hearing. If the court determines that the person owes the amount certified under s. 49.855 (1), the department of workforce development may direct the department of employe 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 certified under s. 49.855 (1), the department of workforce development may not direct the department of employe 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.

AB651,44,20 (4) (a) If the department of workforce development directs the department of employe 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 certified under s. 49.855 (1), this directive shall shall constitute a lien, equal to the amount certified, on any lump sum payment from a pension plan that may be paid the person.

AB651,45,10 (b) If the department of workforce development directs the department of employe 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 certified under s. 49.855 (1), the department of employe 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 that is certified, less any amount specified under par. (d). If the amount certified under s. 49.855 (1), less any amount specified under par. (d), exceeds the lump sum payment, the department of employe 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.

AB651,45,15 (c) A directive to the department of employe 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 certified under s. 49.855 (1) under this section does not prohibit the department of workforce development from attempting to recover the amount through other legal means.

AB651,45,20 (d) The department of workforce development shall promptly notify the department of employe 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 certified under s. 49.855 (1).

AB651, s. 66 Section 66. 49.853 of the statutes is created to read:

AB651,45,23 49.853 Financial record matching program. (1) Definitions. In this section:

AB651,46,3 (a) "Account" means a demand deposit account, checking or negotiable withdrawal order account, savings account, time deposit account or money market mutual fund account.

AB651,46,5 (am) "County child support agency" means the county child support agency under s. 59.53 (5).

AB651,46,6 (b) "Department" means the department of workforce development.

AB651,46,7 (c) "Financial institution" means any of the following:

AB651,46,8 1. A depository institution, as defined in 12 USC 1813 (c).

AB651,46,10 2. An institution-affiliated party, as defined in 12 USC 1813 (u), of a depository institution under subd. 1.

AB651,46,11 3. A federal credit union or state credit union, as defined in 12 USC 1752.

AB651,46,13 4. An institution-affiliated party, as defined in 12 USC 1786 (r), of a credit union under subd. 3.

AB651,46,15 5. A benefit association, insurance company, safe deposit company, money market mutual fund or similar entity authorized to do business in this state.

AB651,46,16 (d) "Obligor" has the meaning given in s. 49.854 (1) (d).

AB651,46,17 (e) "Support" has the meaning given in s. 49.854 (1) (f).

AB651,47,2 (2) Financial record matching program and agreements. The department shall operate a financial record matching program under this section. 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. The agreement shall require the financial institution to participate in the financial record matching program under this section by electing either the financial institution matching option under sub. (3) or the state matching option under sub. (4).

AB651,47,11 (3) Financial institution matching option. (a) If a financial institution with which the department has an agreement under sub. (2) elects to use the financial institution matching option under this subsection, the department shall provide to a financial institution with information regarding delinquent obligors. The information shall be provided at least once each calendar quarter and shall include the obligor's name and social security 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 paragraph shall be provided to the financial institution by an automated data exchange.

AB651,47,24 (b) Each financial institution receiving information under par. (a) shall take actions necessary to determine whether any obligor has an interest in an account maintained at the financial institution. If the financial institution determines that an obligor has an interest in an account at the financial institution, the financial institution shall provide the department with a notice containing the obligor's name, address of record, social security number or other taxpayer identification number, and account information. The information regarding the obligor's account shall include the account number, the account type, the nature of the obligor's interest in the account, and the balance of the account at the time that the record match is made. The notice under this paragraph 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 paragraph shall be provided to the department by an automated data exchange.

AB651,48,6 (c) The financial institution participating in the financial institution matching option under this subsection may use the information provided by the the department under par. (a) only for the purpose of matching records under par. (b). The financial institution may not disclose or retain information provided under par. (a) concerning obligors who do not have an interest in an account maintained at the financial institution.

AB651,48,18 (4) State matching option. (a) If a financial institution with which the department has an agreement under sub. (2) elects to use the state matching option under this subsection, the financial institution shall periodically provide the department with information concerning all accounts maintained at the financial institution. For each account maintained at the financial institution, the financial institution shall notify the department of the account number, the account type, the balance of the account, and the name, address and social security number or other tax identification number of each person having an interest in the account, together with a description of each person's interest. The information required under this paragraph 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 paragraph shall be provided to the department by an automated data exchange.

AB651,48,21 (b) The department shall take actions necessary to determine whether any obligor has an interest in an account maintained at a financial institution providing information under par. (a).

AB651,48,25 (c) The department may use the information provided by a financial institution under par. (a) only for the purpose of matching records under par. (b). The department may not disclose or retain information received under par. (a) concerning account holders who are not delinquent obligors.

AB651,49,5 (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.

AB651, s. 67 Section 67. 49.854 of the statutes is created to read:

AB651,49,8 49.854 Liens against property for delinquent support payments. (1) Definitions. In this section:

AB651,49,9 (a) "Department" means the department of workforce development.

AB651,49,11 (b) "County child support agency" means the county child support agency under s. 59.53 (5).

AB651,49,12 (c) "Levy" means all powers of distraint and seizure.

AB651,49,13 (d) "Obligor" means a person who is obligated to pay court-ordered support.

AB651,49,16 (e) "Property" includes real and personal property, tangible and intangible property and rights to property, but is limited to property and rights of the obligor to property existing at the time of levy.

AB651,49,17 (f) "Support" means any of the following:

AB651,49,18 1. Child or family support.

AB651,49,19 2. Maintenance.

AB651,49,20 3. Medical expenses of a child.

AB651,49,21 4. Birth expenses.

AB651,49,22 5. Any accrued interest on delinquent amounts under subds. 1. to 4.

AB651,50,2 (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 becomes a lien in favor of the department upon all property of the person when the lien is entered in the statewide support lien docket under par. (b).

AB651,50,7 (b) Statewide support lien docket. The department shall maintain a statewide support lien docket. For each county in the state, the department shall provide a copy of the statewide support lien docket to the register of deeds or the county child support agency. Each entry in the statewide support lien docket shall contain the name and the social security number of the obligor.

AB651,50,10 (c) Updating the statewide support lien docket. The department shall update the statewide support lien docket in response to orders issued by a court or family court commissioner.

AB651,50,20 (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 county child support agency or the register of deeds, as specified by the department. Payment of the full amount that is delinquent at the time of payment to that county child support agency extinguishes that lien. Upon request, the county child support agency 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 the delinquent amount. The satisfaction of lien may be recorded in the office of the register of deeds for any county in which real or personal property of the person who owed the support is located.

AB651,51,6 (3) Notification and appeal of automatic lien. (a) Notice and hearing. When a delinquent support obligation is included in the statewide support lien docket, 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 order the department to remove the lien from the statewide support lien docket.

AB651,51,13 (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 statewide support lien dockets. 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.

AB651,51,21 (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.

AB651,51,22 (5) Levying against financial accounts. (a) Definitions. In this subsection:

AB651,51,23 1. "Account" has the meaning given in s. 49.853 (1) (a).

AB651,51,24 2. "Financial institution" has the meaning given in s. 49.853 (1) (c).

AB651,52,10 (b) Notice to the financial institution. To enforce a lien under this section by levying against an account at a financial institution, the department shall send a notice of levy 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. (e) and estimated levy fees and costs under sub. (11), until further notice from the department or a court. If the financial institution has not received instructions from the department or a court to release the funds within 21 days of the date of the notice of levy, the financial institution shall remit the amount specified in the notice to the department.

AB651,52,17 (d) Notice to the obligor. No later than the next day after the department sends notice of levy to the financial institution under par. (b), the department shall send a copy of the notice of levy to the obligor. The department shall also send a copy of the notice of levy 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 shall include language stating all of the following:

AB651,52,18 1. That the obligor has been certified as delinquent in paying support.

AB651,52,19 2. The amount of the support owed.

AB651,52,21 3. The financial institution to which the department sent the notice under par. (b).

AB651,52,24 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.

AB651,53,3 5. That, unless the financial institution has received instructions from the department or a court to release the funds within 21 days of the date of the notice of levy, the financial institution will remit the funds to the department.

AB651,53,5 6. That, the obligor may request a hearing within 20 days after the date of the notice.

AB651,53,7 7. The address to which the request for hearing must be mailed or delivered in order to schedule a hearing.

AB651,53,14 (e) 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 remittance of the amount to the department under par. (a) 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).

AB651,53,23 (f) Hearings. A hearing requested under par. (d) 6. 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) 6., 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 account holder owes the amount of support certified. If the court or family court commissioner determines that the account holder does not owe support or owes less than the amount claimed by the department, the department shall return the seized funds or the excess of the seized funds over the amount of the delinquency to the account holder.

AB651,54,6 (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.

AB651,54,8 (b) Content of notice of seizure. The notice provided under par. (a) shall include all of the following:

AB651,54,9 1. The name of the obligor and the amount of the support owed.

AB651,54,10 2. A description of the personal property seized.

AB651,54,13 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.

AB651,54,15 4. A statement that the hearing may be requested by filing a motion with the court issuing the order to pay the support.

AB651,55,5 (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).

AB651,55,9 (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.

AB651,55,15 (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).

AB651,55,21 (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.

AB651,56,5 (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. A copy of the notice shall be provided to the register of deeds in the county where the real property is located and to any persons known to have a lien against the real property. A register of deeds receiving a notice of intent to levy under this paragraph shall file the notice of intent to levy. After receiving a notice of intent to levy under this paragraph, the register of deeds may not record a deed for the property, except on the instructions of a court or the department.

AB651,56,7 (b) Content of notice of intent. The notice provided under par. (a) shall include all of the following:

AB651,56,8 1. The name of the obligor and the amount of the support owed.

AB651,56,10 2. A description of the real property against which the department intends to levy.

AB651,56,12 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.

AB651,56,14 4. A statement that the hearing may be requested by filing a motion with the court issuing the order to pay the support.

AB651,56,17 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.

AB651,57,3 (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.

AB651,57,17 (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 shall file the final notice.

AB651,58,2 (e) Sale. The department shall publicly advertise the time and place of the sale of real property seized under this subsection in the manner specified under s. 815.31 (1) to (3). 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). 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 shall establish procedures for conducting sales of property under this paragraph and for issuing deeds to property sold under this paragraph.

AB651,58,8 (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.

AB651,58,11 (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.

AB651,58,14 (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.