This is the preview version of the Wisconsin State Legislature site.
Please see http://docs.legis.wisconsin.gov for the production version.
LRB-4725/1
JK:wlj&cjs
2015 - 2016 LEGISLATURE
February 8, 2016 - Introduced by Representatives Knodl and Zepnick,
cosponsored by Senators Darling and L. Taylor. Referred to Joint Committee
on Finance.
AB885,1,4 1An Act to renumber and amend 59.40 (4); to amend 59.52 (28), 71.93 (8) (b)
21. and 74.07; and to create 20.835 (6), 59.17 (2) (b) 8., 59.40 (4) (b), 59.67 and
371.93 (8) (c) of the statutes; relating to: the Department of Revenue collecting
4debt for a county and making an appropriation.
Analysis by the Legislative Reference Bureau
This bill requires that a county having a population of 750,000 or more and
containing a first class city enter into an agreement with the Department of Revenue
(DOR) to have DOR collect the county's debt, including debt owed to the county
circuit court. Other counties are allowed, but not required, to enter into agreements
with DOR to collect debt. All such agreements must provide that DOR charge a
collection fee to the county for collecting the debt. Under current law, counties may
enter into debt collection agreements with DOR, and DOR may charge an
administrative fee for collecting debts.
The bill provides that a debt collection agreement between DOR and a county
having a population of 750,000 or more and containing a first class city may take
effect by the county executive's written proclamation, without any action being taken
by, or approval needed from, the county board. The county must certify for collection
all debts that are more than 90 days past due, except the county may not certify for
collection restitution owed to a person other than the county. If DOR determines that
any certified debts are uncollectible, DOR will notify the county of the uncollectible
debts and the county may contract with another debt collector to collect those debts.

The bill also authorizes the county executive to establish a division of revenue
within the county's department of administration that is responsible for the efficient
collection of accounts receivable and the administration of debts collected by DOR.
The division is required to establish payment plans for debtors who meet certain
income limitations. In general, the division may offer payment plans, including
installment plans, to a debtor whose annual household income is less than 150
percent of the federal poverty line for the size of the debtor's household.
Finally, if DOR determines that the county has not certified its debts to DOR
to the fullest extent possible, DOR will notify the county of the revenue that it would
have collected had the the county completely certified its debts. In addition, DOR
will notify the county of the units of county government responsible for not certifying
debts and the county must reduce its funding to such units in proportion to the
amounts not collected.
For further information see the state and local 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:
AB885,1 1Section 1. 20.835 (6) of the statutes is created to read:
AB885,2,52 20.835 (6) Debt collection. (g) County debt collection. All moneys received
3from debts collected under s. 71.93 (8), pursuant to agreements with counties having
4a population of 750,000 or more and containing a 1st class city under ss. 59.40 (4) (b)
5and 59.67 (2), to make all payments required under s. 71.93 (8) (c) in each fiscal year.
AB885,2 6Section 2. 59.17 (2) (b) 8. of the statutes is created to read:
AB885,3,57 59.17 (2) (b) 8. Establish a division of revenue within the county department
8of administration that is responsible for the efficient collection of accounts receivable
9and the administration of debts collected under s. 71.93 (8). The division shall
10establish payment plans for debtors who meet certain income limitations and shall
11publish information about those plans. The minimum payment under any such plan
12is the greater of $50 a month or the amount required to pay the debt in full by paying
13equal monthly installments for 36 months. If a monthly payment under an
14installment plan, together with any monthly child support payments paid by the

1debtor, would reduce the debtor's annual household income to an amount that is
2below 100 percent of the poverty line established under 42 USC 9902 (2) for the size
3of debtor's household, the division may extend the debtor's installment plan beyond
436 months with a minimum monthly payment of $50. The division may offer
5payment plans established under this subdivision to any of the following debtors:
AB885,3,76 a. A debtor whose annual household income is less than 150 percent of the
7poverty line established under 42 USC 9902 (2) for the size of the debtor's household.
AB885,3,118 b. A debtor whose annual household income will be less than 150 percent of the
9poverty line established under 42 USC 9902 (2) for the size of the debtor's household
10as a result of the debtor or a member of the debtor's household being hospitalized or
11disabled during the 12 months prior to when the debtor incurred the debt.
AB885,3,1612 c. A debtor whose annual household income will be less than 150 percent of the
13poverty line established under 42 USC 9902 (2) for the size of the debtor's household
14as a result of the debtor or an adult member of the debtor's household being
15unemployed for at least 90 consecutive days during the 12 months prior to when the
16debtor incurred the debt.
AB885,3,1817 d. A debtor who is on active duty in the U.S. armed forces or national guard
18during a war, military operation, or national emergency.
AB885,3 19Section 3. 59.40 (4) of the statutes, as affected by 2015 Wisconsin Act 55, is
20renumbered 59.40 (4) (a) and amended to read:
AB885,4,621 59.40 (4) (a) Clerk of circuit court; debt collector contract. If Except as
22required under s. 59.67 (2), and except as provided in par. (b), if
authorized by the
23board under s. 59.52 (28), the clerk of circuit court may contract with a debt collector,
24as defined in s. 427.103 (3), or enter into an agreement with the department of
25revenue under s. 71.93 (8) for the collection of debt. Any contract entered into with

1a debt collector shall provide that the debt collector shall be paid from the proceeds
2recovered by the debt collector. Any contract entered into with the department shall
3provide that the department shall charge a collection fee, as provided under s. 71.93
4(8) (b) 1. The net proceeds received by the clerk of circuit court after the payment to
5the debt collector shall be considered the amount of debt collected for purposes of
6distribution to the state and county under sub. (2) (m).
AB885,4 7Section 4. 59.40 (4) (b) of the statutes is created to read:
AB885,4,108 59.40 (4) (b) A county having a population of 750,000 or more and containing
9a 1st class city shall enter into an agreement to collect debt with the department of
10revenue under s. 59.67 (2) no later than June 30, 2016.
AB885,5 11Section 5. 59.52 (28) of the statutes, as affected by 2015 Wisconsin Act 55, is
12amended to read:
AB885,4,1713 59.52 (28) Collection of court imposed penalties. The Except as required
14under s. 59.67 (2), the
board may adopt a resolution authorizing the clerk of circuit
15court, under s. 59.40 (4), to contract with a debt collector, as defined in s. 427.103 (3),
16or enter into an agreement with the department of revenue under s. 71.93 (8) for the
17collection of debt.
AB885,6 18Section 6. 59.67 of the statutes is created to read:
AB885,4,21 1959.67 Debt collection. (1) Agreements. Except as provided in sub. (2), a
20county may enter into an agreement with the department of revenue under s. 71.93
21(8) (b) 2. to collect the county's debt.
AB885,5,2 22(2) County with a 1st class city. (a) A county having a population of 750,000
23or more and containing a 1st class city shall enter into an agreement with the
24department of revenue under s. 71.93 (8) (b) 2. to collect all of the county's debt. The
25agreement may take effect by written proclamation of the county executive of such

1a county without any action being taken by, or approval needed from, the county
2board. For purposes of this paragraph, the county shall do all of the following:
AB885,5,93 1. Execute an agreement under s. 71.93 (8) (b) 2. no later than June 30, 2016.
4An agreement under this paragraph may allow the county to refer debts for collection
5over time, subject to approval of the department of revenue, rather than refer all
6debts for collection at the time the county and the department of revenue enter into
7the agreement. The agreement shall specify that debts under s. 59.40 (4) or 59.52
8(28) for restitution owed to a person other than the county will not be certified for the
9purposes of this subdivision.
AB885,5,1310 2. Recertify debts under s. 71.935 that are greater than $50 and more than 90
11days past due to the department of revenue under s. 71.93 (8). The county shall
12certify debts under this subdivision electronically, in the manner determined by the
13department of revenue, no later than December 1, 2016.
AB885,5,1614 3. Certify any debt owed to the county that is more than 90 days past due to
15the department of revenue under s. 71.93 (8) (b) unless the debt is subject to active
16negotiation between the county and the debtor.
AB885,5,2017 (b) The department of revenue shall notify the county of all debts certified
18under par. (a) that the department determines are uncollectible. The county may
19enter into a contract with a debt collector, as defined in s. 427.103 (3), to collect debts
20that the department determines are uncollectible.
AB885,5,24 21(3) All amounts collected under s. 59.40 (4) or 59.52 (28) for a county having
22a population of 750,000 or more and containing a 1st class city or for a circuit court
23located in such a county shall be paid to the department of revenue and no other
24person shall have any claim to the amounts.
AB885,7
1Section 7. 71.93 (8) (b) 1. of the statutes, as affected by 2015 Wisconsin Act 55,
2is amended to read:
AB885,6,173 71.93 (8) (b) 1. Except as provided in subd. 2., a state agency and the
4department of revenue shall enter into a written agreement to have the department
5collect any amount owed to the state agency that is more than 90 days past due,
6unless negotiations between the agency and debtor are actively ongoing, the debt is
7the subject of legal action or administrative proceedings, or the agency determines
8that the debtor is adhering to an acceptable payment arrangement. For counties
9participating in the debt collection program under s. 59.67 (2), the county executive
10may approve acceptable payment arrangements.
At least 30 days before the
11department pursues the collection of any debt referred by a state agency, either the
12department or the agency shall provide the debtor with a written notice that the debt
13will be referred to the department for collection. The department may collect
14amounts owed, pursuant to the written agreement, from the debtor in addition to
15offsetting the amounts as provided under sub. (3). The department shall charge each
16debtor whose debt is subject to collection under this paragraph a collection fee and
17that amount shall be credited to the appropriation under s. 20.566 (1) (h).
AB885,8 18Section 8. 71.93 (8) (c) of the statutes is created to read:
AB885,6,2219 71.93 (8) (c) 1. The department shall credit to the appropriation account under
20s. 20.835 (6) (g) the debts collected for a county having a population of 750,000 or
21more and containing a 1st class city under an agreement under s. 59.40 (4) and 59.67
22(2).
AB885,7,223 2. The department shall pay to a county described in subd. 1. in each fiscal year
24an amount equal to the debts collected for the county and credited to the

1appropriation account under s. 20.835 (6) (g) in that fiscal year, less any amount
2specified in the agreement under subd. 3.
AB885,7,83 3. The department and a county described in subd. 1. shall enter into an
4agreement to determine the amount of the debts collected for the county in a fiscal
5year that will not be paid to the county in that fiscal year, but that may be reserved
6in the appropriation account under s. 20.835 (6) (g) and used for future payment to
7the county or lapsed to the general fund for the purpose of making payments from
8the appropriation account under s. 20.855 (4) (cr).
AB885,7,129 4. A county described in subd. 1. shall enter into an agreement with a local
10workforce development board established under 29 USC 2832 and pay the local
11workforce development board, from the revenue received under subd. 2., $1,000,000
12each fiscal year for job training and workforce development programs.
AB885,7,2013 5. If in any year a county described in subd. 1. does not certify its debts under
14s. 59.67 (2) to the fullest extent possible, as determined by the secretary of revenue,
15for collection under this subsection, the secretary shall report to the county the
16estimated amount of revenue foregone and the unit of county government
17responsible for not certifying the debt to the fullest extent possible. In the final
18budget approved by the county, the county shall proportionately reduce funding to
19each responsible unit of county government so that the total reduction equals the
20revenue foregone.
AB885,9 21Section 9. 74.07 of the statutes is amended to read:
AB885,8,4 2274.07 Treasurers responsible for collection. The taxation district
23treasurer and the county treasurer shall collect the general property taxes, special
24assessments, special taxes and special charges shown in the tax roll. Except as
25required under s. 59.67 (2), if authorized by the county board, the county treasurer

1may contract with a debt collector, as defined in s. 427.103 (3), or enter into an
2agreement with the department of revenue under s. 71.93 (8) for the collection of
3debt. Any contract entered into with a debt collector shall provide that the debt
4collector shall be paid from the proceeds recovered by the debt collector.
AB885,8,55 (End)
Loading...
Loading...