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2015 - 2016 LEGISLATURE
March 9, 2016 - Printed by direction of Senate Chief Clerk.
AB885-engrossed,1,4 1An Act to renumber and amend 59.40 (4); to amend 59.52 (28) and 74.07; and
2to create 20.835 (6), 59.17 (2) (b) 8., 59.17 (2) (b) 9., 59.40 (4) (b), 59.52 (28a),
359.67 and 71.93 (8) (c) of the statutes; relating to: the Department of Revenue
4collecting debt for a county and making an appropriation.
Analysis by the Legislative Reference Bureau
Engrossment information:
The text of Engrossed 2015 Assembly Bill 885, as passed by the assembly on
February 18, 2016, consists of the following documents adopted in the assembly on
February 18, 2016: the bill as affected by Assembly Amendment 1, Assembly
Amendment 3, and Assembly Amendment 4. The text also includes the February 17,
2016, chief clerk's corrections to Assembly Amendment 1 and the March 9, 2016,
chief clerk's corrections to Assembly Amendment 3.
Content of Engrossed 2015 Assembly Bill 885:
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 200
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-engrossed,1 1Section 1. 20.835 (6) of the statutes is created to read:
AB885-engrossed,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).
AB885-engrossed,2 6Section 2. 59.17 (2) (b) 8. of the statutes is created to read:
AB885-engrossed,3,157 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 be
10responsible for monthly reconciliation of amounts collected under s. 71.93 (8) and

1shall ensure that amounts paid are appropriately credited towards the outstanding
2balance owed by each individual debtor. The division shall credit payments in an
3individual debtor's account based on the priority provided by law. The county is
4entitled to the total amount collected and credited to the appropriation account
5under s. 20.835 (6). The division shall establish payment plans for debtors who meet
6certain income limitations and shall publish information about those plans. The
7minimum payment under any such plan is the greater of $50 a month or the amount
8required to pay the debt in full by paying equal monthly installments for 36 months.
9If a monthly payment under an installment plan, together with any monthly child
10support payments paid by the debtor, would reduce the debtor's annual household
11income to an amount that is below 100 percent of the poverty line established under
1242 USC 9902 (2) for the size of the debtor's household, the division may extend the
13debtor's installment plan beyond 36 months with a minimum monthly payment of
14$25. The division may offer payment plans established under this subdivision to any
15of the following debtors:
AB885-engrossed,3,1716 a. A debtor whose annual household income is less than 200 percent of the
17poverty line established under 42 USC 9902 (2) for the size of the debtor's household.
AB885-engrossed,3,2118 b. A debtor whose annual household income will be less than 200 percent of the
19poverty line established under 42 USC 9902 (2) for the size of the debtor's household
20as a result of the debtor or a member of the debtor's household being hospitalized or
21disabled during the 12 months prior to when the debtor incurred the debt.
AB885-engrossed,4,222 c. A debtor whose annual household income will be less than 200 percent of the
23poverty line established under 42 USC 9902 (2) for the size of the debtor's household
24as a result of the debtor or an adult member of the debtor's household being

1unemployed for at least 90 consecutive days during the 12 months prior to when the
2debtor incurred the debt.
AB885-engrossed,4,63 cm. A debtor whose annual household income will be less than 200 percent of
4the poverty line established under 42 USC 9902 (2) for the size of the debtor's
5household as a result of the debtor or a member of the debtor's household being
6incarcerated during the 12 months prior to when the debtor incurred the debt.
AB885-engrossed,4,87 d. A debtor who is on active duty in the U.S. armed forces or national guard
8during a war, military operation, or national emergency.
AB885-engrossed,2d 9Section 2d. 59.17 (2) (b) 9. of the statutes is created to read:
AB885-engrossed,4,1510 59.17 (2) (b) 9. Enter into an agreement with a local workforce development
11board established under 29 USC 2832 and pay the local workforce development
12board each fiscal year for job training and workforce development programs, from the
13revenue received from debt collection under subd. 8., $1,000,000 or 50 percent of the
14amount collected, whichever is less. An agreement under this subdivision may not
15be in effect for more than one year and may be renegotiated at any time.
AB885-engrossed,3 16Section 3. 59.40 (4) of the statutes, as affected by 2015 Wisconsin Act 55, is
17renumbered 59.40 (4) (a) and amended to read:
AB885-engrossed,5,318 59.40 (4) (a) Clerk of circuit court; debt collector contract. If Except as
19required under s. 59.67 (2), and except as provided in par. (b), if
authorized by the
20board under s. 59.52 (28), the clerk of circuit court may contract with a debt collector,
21as defined in s. 427.103 (3), or enter into an agreement with the department of
22revenue under s. 71.93 (8) for the collection of debt. Any contract entered into with
23a debt collector shall provide that the debt collector shall be paid from the proceeds
24recovered by the debt collector. Any contract entered into with the department shall
25provide that the department shall charge a collection fee, as provided under s. 71.93

1(8) (b) 1. The net proceeds received by the clerk of circuit court after the payment to
2the debt collector shall be considered the amount of debt collected for purposes of
3distribution to the state and county under sub. (2) (m).
AB885-engrossed,4 4Section 4. 59.40 (4) (b) of the statutes is created to read:
AB885-engrossed,5,75 59.40 (4) (b) A county having a population of 750,000 or more and containing
6a 1st class city shall enter into an agreement to collect debt with the department of
7revenue under s. 59.67 (2) no later than June 30, 2016.
AB885-engrossed,5 8Section 5. 59.52 (28) of the statutes, as affected by 2015 Wisconsin Act 55, is
9amended to read:
AB885-engrossed,5,1410 59.52 (28) Collection of court imposed penalties. The Except as required
11under s. 59.67 (2), the
board may adopt a resolution authorizing the clerk of circuit
12court, under s. 59.40 (4), to contract with a debt collector, as defined in s. 427.103 (3),
13or enter into an agreement with the department of revenue under s. 71.93 (8) for the
14collection of debt.
AB885-engrossed,5b 15Section 5b. 59.52 (28a) of the statutes is created to read:
AB885-engrossed,5,2016 59.52 (28a) Collection of restitution. The clerk of circuit court may enter
17into an agreement with the department of revenue under s. 71.93 (8) for the collection
18of some or all of the restitution owed to victims of crime. The department shall return
19the collected restitution, under the terms of the agreement, to the clerk of circuit
20court for distribution to the victims entitled to the restitution.
AB885-engrossed,6 21Section 6. 59.67 of the statutes is created to read:
AB885-engrossed,5,24 2259.67 Debt collection. (1) Agreements. Except as provided in sub. (2), a
23county may enter into an agreement with the department of revenue under s. 71.93
24(8) (b) 2. to collect the county's debt.
AB885-engrossed,6,10
1(2) County with a 1st class city. (a) A county having a population of 750,000
2or more and containing a 1st class city shall enter into an agreement with the
3department of revenue under s. 71.93 (8) (b) 2. to collect all of the county's debt. The
4agreement may take effect by written proclamation of the county executive of such
5a county without any action being taken by, or approval needed from, the county
6board. The initial term of the agreement shall be 3 years. The agreement may be
7extended for additional 3-year terms if the comptroller certifies, prior to the
8expiration of each term, that the agreement has resulted in increased collections over
9the initial term of the agreement. For purposes of this paragraph, the county shall
10do all of the following:
AB885-engrossed,6,1711 1. Execute an agreement under s. 71.93 (8) (b) 2. no later than June 30, 2016.
12An agreement under this paragraph may allow the county to refer debts for collection
13over time, subject to approval of the department of revenue, rather than refer all
14debts for collection at the time the county and the department of revenue enter into
15the agreement. The agreement shall specify that debts under s. 59.40 (4) or 59.52
16(28) for restitution owed to a person other than the county will not be certified for the
17purposes of this subdivision.
AB885-engrossed,6,2318 2. Recertify debts under s. 71.935 that are greater than $50 and more than 90
19days past due to the department of revenue under s. 71.93 (8). The county shall
20certify debts under this subdivision electronically, in the manner determined by the
21department of revenue, no later than December 1, 2016. For purposes of this
22subdivision, delinquent property taxes may be certified for collection 90 days after
23the due date of the last installment.
AB885-engrossed,7,3
13. Certify any debt owed to the county that is more than 90 days past due to
2the department of revenue under s. 71.93 (8) (b) unless the debt is subject to active
3negotiation between the county and the debtor.
AB885-engrossed,7,74 (b) The department of revenue shall notify the county of all debts certified
5under par. (a) that the department determines are uncollectible. The county may
6enter into a contract with a debt collector, as defined in s. 427.103 (3), to collect debts
7that the department determines are uncollectible.
AB885-engrossed,7,88 (c) This subsection does not apply after January 1, 2036.
AB885-engrossed,7,12 9(3) All amounts collected under s. 71.93 (8) for a county having a population
10of 750,000 or more and containing a 1st class city or for a circuit court located in such
11a county shall be paid to the department of revenue and no other person shall have
12any claim to the amounts.
AB885-engrossed,8 13Section 8. 71.93 (8) (c) of the statutes is created to read:
AB885-engrossed,7,1614 71.93 (8) (c) 1. The department shall credit to the appropriation account under
15s. 20.835 (6) (g) the debts collected for a county having a population of 750,000 or
16more and containing a 1st class city under an agreement under par. (b) 1.
AB885-engrossed,7,1917 2. The department shall pay to a county described in subd. 1. in each fiscal year
18an amount equal to the debts collected for the county and credited to the
19appropriation account under s. 20.835 (6) (g) in that fiscal year.
AB885-engrossed,8,220 5. If in any year a county described in subd. 1. does not certify its debts under
21s. 59.67 (2) to the fullest extent possible, as determined by the secretary of revenue,
22for collection under this subsection, the secretary of revenue shall report to the
23county the estimated amount of revenue foregone and the unit of county government
24responsible for not certifying the debt to the fullest extent possible. In the final
25budget approved by the county, the county shall proportionately reduce funding to

1each responsible unit of county government so that the total reduction equals the
2revenue foregone.
AB885-engrossed,9 3Section 9. 74.07 of the statutes is amended to read:
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