LRB-3425/1
JK:eev:jf
2013 - 2014 LEGISLATURE
October 22, 2013 - Introduced by Senators Vukmir,
L. Taylor, Risser, Lazich and
Harris, cosponsored by Representatives
Steineke, Krug, Spiros, Bies,
Severson, Jagler, Nygren, Murtha, Kleefisch, Thiesfeldt and Genrich.
Referred to Committee on Workforce Development, Forestry, Mining, and
Revenue.
SB361,1,3
1An Act to repeal 71.93 (3) (a) 1.;
to amend 71.93 (3) (a) (intro.), 71.93 (3) (am)
2and 71.93 (8) (b) 6.; and
to create 71.93 (3) (a) 1m. of the statutes;
relating to:
3the refund setoff for state debt collections.
Analysis by the Legislative Reference Bureau
Under current law, a state agency may certify to DOR debts owed to the state
agency. DOR then collects the debt by subtracting the amount from any state tax
refund owed to the debtor. DOR first collects any debts owed to it, and then the debts
certified to DOR are collected in the following order:
1. Wisconsin child support, family support, and maintenance obligations
certified by the Department of Children and Families.
2. State agency debt collected pursuant to an agreement with an individual
taxpayer and debt certified by the courts, the legislature, or authorities.
3. Debt owed to local units of government collected pursuant to an agreement
with an individual taxpayer.
4. State agency debt, other than child support obligations.
5. Child support or spousal support obligations submitted by an agency of
another state.
6. Debt certified by counties and municipalities.
7. Federal tax obligations.
8. Tribal obligations.
9. Tax obligations of other states.
Under this bill, DOR first collects Wisconsin child support, family support, and
maintenance obligations certified by the Department of Children and Families
before collecting any other debt.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB361,2,83
71.93
(3) (a) (intro.) The department of revenue shall setoff any debt
or other
4amount owed to the department, regardless of the origin of the debt or of the amount,
5its nature or its date under s. 49.855 (1), certified by the department of children and
6families under sub. (2). If after the setoff there remains a refund in excess of $10, the
7department shall set off the remaining refund against certified debts of other entities
8in the following order:
SB361,3
11Section
3. 71.93 (3) (a) 1m. of the statutes is created to read:
SB361,2,1312
71.93
(3) (a) 1m. Debt or other amount owed to the department, regardless of
13the origin of the debt or of the amount, its nature, or its date.
SB361,4
14Section
4. 71.93 (3) (am) of the statutes is amended to read:
SB361,3,315
71.93
(3) (am) If more than one certified debt exists for any debtor for the same
16type of debt specified under par. (a)
1. 1m. to 9., the refund shall be first set off against
17the earliest debt certified, except that no child support or spousal support obligation
18submitted by an agency of another state may be set off until all debts owed to and
19certified by state agencies of this state have been set off. When all debts have been
1satisfied, any remaining refund shall be refunded to the debtor by the department.
2Any legal action contesting a setoff under this paragraph shall be brought against
3the entity that certified the debt.
SB361,3,96
71.93
(8) (b) 6. If the debtor owes debt to the department and to other entities,
7payments shall first apply to debts owed to the department
of children and families
8under s. 49.855 (1), then to the other entities in the order determined under sub. (3)
9(a).
SB361,6
10Section
6.
Effective date.
SB361,3,1111
(1)
This act takes effect on January 1, 2014.
