AB651: Bill Text

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.

AB651,58,20 (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).

AB651,58,24 (12) Priorities and use of proceeds. (a) Priorities. A lien on property that is entered in the statewide support lien docket has priority over all other liens on the property that are unperfected at the time that the lien is entered in the statewide support lien docket.

AB651,59,4 (b) Use of proceeds. 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).

AB651,59,7 (c) 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.

AB651,59,11 (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.

AB651,59,15 (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.

AB651,59,19 (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.

AB651,60,10 (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.

AB651,60,14 (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.

AB651,60,17 (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.

AB651,60,21 (17) Delegation and power to contract. (a) 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).

AB651,60,23 (b) The department may contract with a county sheriff to sell property seized under subs. (6) and (7).

AB651,60,25 (18) Preservation of remedies. The availability of the remedies under this section does not abridge the right of the department to pursue other remedies.

AB651, s. 68 Section 68. 49.856 of the statutes is created to read:

AB651,61,2 49.856 Notification of delinquent payments. (1) In this section:

AB651,61,3 (a) "Agency" means the county child support agency under s. 59.53 (5).

AB651,61,4 (b) "Department" means the department of workforce development.

AB651,61,9 (c) "Obligor" means a person who owes a delinquent child support, family support or maintenance payment or who owes an outstanding amount that has been ordered by a court for past support, medical expenses or birth expenses and that delinquent payment or outstanding amount has been certified by the department under s. 49.855.

AB651,61,22 (2) If the department certifies a delinquent payment or outstanding amount under s. 49.855 (1) and the obligor receives a judgment against another person or has settled a lawsuit against another person that provides for the payment of money, the department or agency may send a notice to any person who is ordered to pay the judgment, who has agreed to the settlement or who holds the amount of the judgment or settlement in trust. The notice shall inform the person that the amount of the judgment or settlement due the obligor is subject to a lien by the department for the payment of the delinquent payment or outstanding amount certified under s. 49.855. The notification shall include the name and address of the obligor and the total amount certified under s. 49.855. Upon receipt of a notification, the person receiving the notification shall withhold an amount equal to the amount certified under s. 49.855 before making any payment under the judgment or pursuant to the settlement.

AB651,61,25 (3) When the department or agency notifies a person under sub. (2), the department or agency shall send a notice to the last-known address of the obligor. The notice shall do all of the following:

AB651,62,5 (a) Inform the obligor that the department or agency notified the person who owes money to the obligor or who holds money in trust for the obligor under a judgment or pursuant to a settlement to withhold the amount that was certified under s. 49.855 from any lump sum payment that may be paid to the obligor as a result of the judgment or settlement.

AB651,62,8 (b) Inform the obligor that he or she may request a hearing before the circuit court that rendered the order to pay support, maintenance, medical expenses or birth expenses within 20 days after receipt of this notice.

AB651,62,12 (c) Inform the obligor that if a hearing is requested under par. (b) the department or agency will not require the person withholding the amount to send the amount to that department or agency until a final decision is issued in response to the request for a hearing.

AB651,62,14 (d) Request that the obligor inform the department or agency if a bankruptcy stay is in effect with respect to the obligor.

AB651,62,19 (4) If the obligor requests a hearing under sub. (3) (b), the circuit court shall, within 10 days after receiving the request, set the matter for a hearing. The only issue at the hearing shall be whether the person owes the delinquent payment or outstanding amount certified under s. 49.855. A family court commissioner may conduct the hearing.

AB651,63,7 (5) Receipt of a notification by a person under sub. (2) shall constitute a lien, equal to the amount certified, on any lump sum payment resulting from a judgment or settlement that may be due the obligor. The department or agency shall notify the person who received the notification under sub. (2) that the obligor has not requested a hearing or, if he or she has requested a hearing, of the results of that hearing, and of the responsibilities of the person who received the notification under sub. (2), including the requirement to submit the amount certified under s. 49.855. Use of the procedures under this section does not prohibit the department or agency from attempting to recover the amount certified under s. 49.855 through other legal means. The department or agency shall promptly notify any person who receives notification under sub. (2) if the amount certified under s. 49.855 has been recovered by some other means and no longer must be withheld from the judgment or settlement under this section.

AB651, s. 69 Section 69. 49.857 of the statutes is created to read:

AB651,63,10 49.857 Administrative enforcement of support; denial, nonrenewal, restriction and suspension of licenses. (1) In this section:

AB651,63,12 (a) "Child support agency" means a county child support agency under s. 59.53 (5).

AB651,63,14 (b) "Credential" means a license, permit, certificate or registration that is granted under chs. 440 to 480.

AB651,63,17 (c) "Credentialing board" means a board, examining board or affiliated credentialing board in the department of regulation and licensing that grants a credential.

AB651,63,18 (d) "License" means any of the following:

AB651,63,19 1. A license issued under s. 13.63 or a registration issued under s. 13.64.

AB651,63,20 2. An approval specified in s. 29.09 (11m).

AB651,63,21 3. A license issued under s. 48.66 (1).

AB651,63,25 4. A certification, license, training permit, registration, approval or certificate issued under s. 49.45 (2) (a) 11., 146.50 (5) (a) or (b), (6g) (a) or (8) (a), 250.05 (5), 252.23 (2), 252.24 (2), 254.176 (1) or (3) (a), 254.178 (2) (a), 254.20 (2), (3) or (4), 254.47 (1), 254.64 (1) (a) or (b), 254.71 (2) or 255.08 (2).

AB651,64,1 5. A business tax registration certificate issued under s. 73.03 (50).

AB651,64,3 6. A license, registration, registration certificate or certification specified in s. 93.135 (1).