SB59: Bill Text

SB59,985 Section 985 . 71.83 (1) (ch) of the statutes is created to read:

SB59,652,9 71.83 (1) (ch) First-time home buyers savings account withdrawals. If an account holder, as defined under s. 71.10 (10) (a) 1., or an account holder's estate is required to add any amount to federal adjusted gross income under s. 71.05 (6) (a) 29., the account holder or the account holder's estate shall also pay an amount equal to 10 percent of the amount that was added to income under s. 71.05 (6) (a) 29. The department of revenue shall assess, levy, and collect the penalty under this paragraph as it assesses, levies, and collects taxes under this chapter.

SB59,986 Section 986. 71.93 (title) of the statutes is amended to read:

SB59,652,12 71.93 (title) Setoffs for other state agencies and debt collection for state agencies, municipalities, and counties.

SB59,987 Section 987. 71.93 (1) (a) 3. of the statutes is repealed.

SB59,988 Section 988. 71.93 (1) (a) 4. of the statutes is repealed.

SB59,989 Section 989. 71.93 (1) (a) 5. of the statutes is repealed.

SB59,990 Section 990. 71.93 (1) (a) 6. of the statutes is repealed.

SB59,991 Section 991 . 71.93 (1) (a) 7m. of the statutes is repealed.

SB59,992 Section 992. 71.93 (1) (a) 8. of the statutes is repealed.

SB59,993 Section 993. 71.93 (1) (a) 9. of the statutes is created to read:

SB59,652,23 71.93 (1) (a) 9. A delinquent child support or spousal support obligation that is certified under s. 49.855 and is owed to, or may be recovered by the department of children and families on behalf of, a custodial parent, former spouse, or other person.

SB59,994 Section 994. 71.93 (1) (a) 10. of the statutes is created to read:

SB59,653,3 71.93 (1) (a) 10. Restitution owed pursuant to an order or judgment under s. 973.09 (3) (b) or 973.20 (1r) that may be owed to, paid to, or recovered by the victim, the department of corrections, a court, or a clerk of court.

SB59,995 Section 995. 71.93 (1) (b) of the statutes is amended to read:

SB59,653,7 71.93 (1) (b) “Debtor" means any person owing a debt to a state agency and any person who owes a delinquent child support or spousal support obligation to an agency of another state.

SB59,996 Section 996. 71.93 (1) (d) 3. of the statutes is created to read:

SB59,653,10 71.93 (1) (d) 3. A lottery prize equal to at least $600 that exceeds a debtor's Wisconsin tax liability or other liability owed to the department.

SB59,997 Section 997. 71.93 (1) (d) 4. of the statutes is created to read:

SB59,653,14 71.93 (1) (d) 4. Compensation or payment owed to a lottery retailer under ch. 565, whether owed by statute, rule, or contract, that exceeds a debtor's Wisconsin tax liability or liability owed to the department.

SB59,998 Section 998. 71.93 (1) (e) of the statutes is renumbered 71.93 (1) (e) (intro.) and amended to read:

SB59,653,18 71.93 (1) (e) (intro.) “State agency" has the meaning set forth under s. 20.001 (1). means any of the following:

SB59,999 Section 999. 71.93 (1) (e) 1. of the statutes is created to read:

SB59,653,21 71.93 (1) (e) 1. An office, department, or independent agency in the executive branch of the Wisconsin state government, the legislature, or the courts.

SB59,1000 Section 1000. 71.93 (1) (e) 2. of the statutes is created to read:

SB59,653,23 71.93 (1) (e) 2. The State of Wisconsin.

SB59,1001 Section 1001. 71.93 (2) (title) of the statutes is amended to read:

SB59,653,25 71.93 (2) (title) Certification of state agency debts.

SB59,1002 Section 1002. 71.93 (2) of the statutes is renumbered 71.93 (2) (a) and amended to read:

SB59,654,11 71.93 (2) (a) A state agency may certify to the department any properly identified debt exceeding $20 so that the department may set off the amount of the debt against a refund to the debtor or so that the department of administration may reduce a disbursement to the debtor by the amount of the debt. At least 30 days prior to certification each debtor shall be sent a notice by the state agency of its intent to certify the debt to the department for setoff or reduction and of the debtor's right of appeal. At the time of certification, the certifying state agency shall furnish the social security number or operator's license number of individual debtors and the federal employer identification number of other debtors.

SB59,1003 Section 1003. 71.93 (2) (b) of the statutes is created to read:

SB59,654,20 71.93 (2) (b) A state agency wishing to certify a debt to the department shall enter into a written agreement with the department prior to any certification under par. (a). A certification of debt by a state agency, or changes to a certification, shall be in a manner and form prescribed by the department. The secretary of revenue shall be the final authority in the resolution of an interagency dispute regarding the certification of a debt. If a refund or disbursement is adjusted after a setoff or reduction, the department may readjust any erroneous settlement with the certifying state agency.

SB59,1004 Section 1004. 71.93 (3) (title) of the statutes is repealed and recreated to read:

SB59,654,22 71.93 (3) (title) Setoff.

SB59,1005 Section 1005. 71.93 (3) (a) (intro.) of the statutes is amended to read:

SB59,655,5 71.93 (3) (a) (intro.) The department of revenue shall setoff set off any debt or other amount owed to the department, regardless of the origin of the debt or of the amount, its nature or its date. The department's setoff shall include the use of unclaimed property owed to the debtor under s. 177.24, against a refund owed to the debtor. If after the setoff there remains a refund in excess of $10, the department shall set off the remaining refund against certified debts of other entities in the following order:

SB59,1006 Section 1006 . 71.93 (3) (a) 1. of the statutes is amended to read:

SB59,655,8 71.93 (3) (a) 1. Debt under s. 49.855 (1), certified by the department of children and families under sub. (2) (a).

SB59,1007 Section 1007. 71.93 (3) (a) 1m. of the statutes is amended to read:

SB59,655,11 71.93 (3) (a) 1m. Debt certified Restitution under s. 973.20 (10) (b) sub. (1) (a) 10. that is certified by the department of corrections, a court, or a clerk of court.

SB59,1008 Section 1008. 71.93 (3) (a) 3. of the statutes is amended to read:

SB59,655,14 71.93 (3) (a) 3. Debt under s. 71.935 owed to local units of government a municipality or county and collected pursuant to an agreement under sub. (8).

SB59,1009 Section 1009 . 71.93 (3) (a) 4. of the statutes is amended to read:

SB59,655,17 71.93 (3) (a) 4. Debt certified under sub. (2) (a), other than child support debt certified by the department of children and families.

SB59,1010 Section 1010. 71.93 (3) (a) 7. of the statutes is amended to read:

SB59,655,20 71.93 (3) (a) 7. Federal tax obligations collected pursuant to an agreement under s. 73.03 (52) (a) or (b).

SB59,1011 Section 1011 . 71.93 (3) (b) of the statutes is amended to read:

SB59,656,9 71.93 (3) (b) The department shall provide the information obtained under sub. (2) (a) to the department of administration. Before reducing any disbursement as provided under this paragraph, the department of administration shall contact the department to verify whether a certified debt that is the basis of the reduction has been collected by other means. If the certified debt remains uncollected, the department of administration shall reduce the disbursement by the amount of the debtor's certified debt under sub. (2) (a), notify the department of such reduction and disbursement, and remit the amount of the reduction to the department in the manner prescribed by the department. If more than one certified debt exists for any debtor, the disbursement shall be reduced first by any debts certified under s. 73.12 then by the earliest debt certified. Any legal action contesting a reduction under this paragraph shall be brought against the state agency that certified the debt under sub. (2) (a).

SB59,1012 Section 1012. 71.93 (3) (d) of the statutes is created to read:

SB59,656,15 71.93 (3) (d) The department may provide, upon request by a state agency, a report that details each active debt subject to this section of the state agency, including the ending balance. The department may provide a weekly report to a state agency of amounts collected and payments through electronic funds transfer or state account system general ledger transfer.

SB59,1013 Section 1013. 71.93 (4) of the statutes is repealed.

SB59,1014 Section 1014. 71.93 (5) of the statutes is renumbered 71.93 (3) (e) and amended to read:

SB59,657,2 71.93 (3) (e) Debtor charged for costs. Each debtor shall be charged for administration expenses a collection fee, and the amounts charged shall be credited to the department's appropriation under s. 20.566 (1) (h). The department may set off amounts charged to the debtor under this subsection against any refund owed to the debtor, in the manner provided in sub. (3). Annually on or before November 1, the department shall review its costs incurred during the previous fiscal year in administering state agency setoffs and reductions and shall adjust its subsequent charges to each debtor to reflect that experience.

SB59,1015 Section 1015. 71.93 (6) of the statutes is repealed.

SB59,1016 Section 1016. 71.93 (7) (title) of the statutes is repealed.

SB59,1017 Section 1017. 71.93 (7) of the statutes is renumbered 71.93 (3) (f).

SB59,1018 Section 1018. 71.93 (8) (title) of the statutes is amended to read:

SB59,657,7 71.93 (8) (title) State agency debt Debt collection agreements.

SB59,1019 Section 1019. 71.93 (8) (a) of the statutes is repealed.

SB59,1020 Section 1020. 71.93 (8) (b) 1. of the statutes is renumbered 71.93 (8) (am) and amended to read:

SB59,658,2 71.93 (8) (am) Except for debts under sub. (1) (a) 2. and 9. and except as provided in subd. 2. par. (bm), a state agency and the department of revenue shall enter into a written agreement to have the department collect any amount owed to the state agency a debt that is more than 90 days past due, unless negotiations between the agency and debtor are actively ongoing, the debt is the subject of legal action or administrative proceedings, or the agency determines that the debtor is adhering to an acceptable payment arrangement. At least 30 days before the department pursues the collection of any debt referred by a state agency, either the department or the agency shall provide the debtor with a written notice that the debt will be referred to the department for collection. Any legal action contesting the validity of a debt shall be brought against the state agency that referred the debt. The department may collect amounts owed, pursuant to the written agreement, from the debtor in addition to offsetting the amounts as provided under sub. (3). The department shall charge each debtor whose debt is subject to collection under this paragraph a collection fee and that amount shall be credited to the appropriation under s. 20.566 (1) (h).

SB59,1021 Section 1021. 71.93 (8) (b) 2. of the statutes is renumbered 71.93 (8) (bm) and amended to read:

SB59,658,9 71.93 (8) (bm) The department may enter into agreements described under subd. 1. par. (am) with the courts, the legislature, authorities, as defined in s. 16.41 (4), and local units of government, to collect debt under s. 71.935, municipalities and counties. Any legal action contesting the validity of a debt shall be brought against the unit of government that referred the debt to the department.

SB59,1022 Section 1022. 71.93 (8) (b) 3. of the statutes is repealed.

SB59,1023 Section 1023. 71.93 (8) (b) 4. of the statutes is renumbered 71.93 (8) (c).

SB59,1024 Section 1024. 71.93 (8) (b) 5. of the statutes is renumbered 71.93 (8) (d).

SB59,1025 Section 1025. 71.93 (8) (b) 6. of the statutes is renumbered 71.93 (8) (e).

SB59,1026 Section 1026 . 71.935 (1) (a) of the statutes is amended to read:

SB59,659,5 71.935 (1) (a) “Debt" means a parking citation of at least $20 that is unpaid and for which there has been no court appearance by the date specified in the citation or, if no date is specified, that is unpaid for at least 28 days; an unpaid fine, fee, restitution or forfeiture of at least $20; delinquent general property taxes, as defined in s. 74.01 (1), or a delinquent special assessment, as defined in s. 74.01 (3), special charge, as defined in s. 74.01 (4), or special tax, as defined in s. 74.01 (5), and any interest or penalty charged due to the delinquency; and any other debt that is at least $20, including debt related to property taxes, if the debt has been reduced to a judgment or the municipality or county to which the debt is owed has provided the debtor reasonable notice and an opportunity to be heard with regard to the debt. For purposes of this subsection, a debt owed to an ambulance service provider operating pursuant to a contract with a municipality or county under s. 59.54 (1), 60.565, 61.64, or 62.133, is considered a debt owed to the municipality or county, if the debt relates to providing ambulance services to individuals in that municipality or county as a result of responding to requests that originate from a government-operated 911 call center.

SB59,1027 Section 1027 . 71.935 (1) (am) of the statutes is repealed.

SB59,1028 Section 1028. 71.935 (1) (ar) of the statutes is repealed.

SB59,1029 Section 1029. 71.935 (1) (b) of the statutes is amended to read:

SB59,659,10 71.935 (1) (b) “Debtor" means a person who owes a debt related to victim restitution or who owes a debt to a municipality or county.

SB59,1030 Section 1030. 71.935 (4) (a) of the statutes is repealed and recreated to read:

SB59,659,17 71.935 (4) (a) The department may provide, upon request by a municipality or county, a report that details each active debt subject to this section of the municipality or county, including the ending balance. The department may provide a weekly report to a municipality or county of amounts collected and payments disbursed through electronic funds transfer or state account system general ledger transfer.

SB59,1031 Section 1031. 71.935 (5) of the statutes is amended to read:

SB59,660,2 71.935 (5) Each debtor shall be charged for administration expenses a collection fee, and the amounts charged shall be credited to the appropriation account under s. 20.566 (1) (h). The department may set off amounts charged to the debtor under this subsection against any refund owed to the debtor, in the manner provided in sub. (3). Annually on or before November 1, the department shall review its costs incurred during the previous fiscal year in administering setoffs and reductions under this section and shall adjust its subsequent charges to each debtor to reflect that experience.

SB59,1032 Section 1032. 73.03 (67) of the statutes is amended to read:

SB59,660,8 73.03 (67) To submit a request for a supplement under s. 16.515 for administering the debt collection program under s. 71.93 (8) (b) that includes a detailed plan for implementing the program, a listing of agencies and other entities that would participate in the program, an estimate of the amount of debt collections under the program, and the fees that the debtors would pay under the program.

SB59,1033 Section 1033 . 73.03 (71) (b) of the statutes is amended to read:

SB59,660,17 73.03 (71) (b) After the department makes the determination under par. (a), the department shall determine how much the lowest individual income tax rates rate under s. 71.06 (1q) (a) and (2) (i) 1. and (j) 1. may be reduced for the taxable year ending on December 31, 2019, in order to decrease individual income tax revenue by the amount determined under par. (a). For purposes of this paragraph, the tax rate reductions shall be calculated in proportion to the share of gross tax attributable to each of the tax brackets under s. 71.06 in effect during the most recently completed taxable year.

SB59,1034 Section 1034. 73.03 (73) (f) 1. of the statutes is amended to read:

SB59,660,23 73.03 (73) (f) 1. Subject to subd. 2., for taxable years beginning after December 31, 2020, the department shall make the pilot program described under par. (b) permanent and applicable to all eligible claimants of the earned income tax credit under s. 71.07 (9e) (aj) (ak), based on the specifications described under pars. (b) and (c) 2.

SB59,1035 Section 1035. 74.09 (3) (gb) of the statutes is created to read:

SB59,661,5 74.09 (3) (gb) 1. Include information from the school district where the property is located regarding the amount of any gross reduction in state aid to the district under ss. 115.7915 (4m), 118.60 (4d), and 121.08 (4) (b) in the previous year and the current year and the percentage change between those years, except that this paragraph does not apply in any year in which such a reduction does not occur.

SB59,661,7 2. In addition to the information provided under subd. 1., include the following insert in substantially similar form:

SB59,661,12 “The gross reduction in state aid to your school district in the .... (current year) is $ .... as a result of pupils enrolled in the .... (statewide choice program) (Racine choice program) (Milwaukee choice program) or as a result of payments to .... (a private school) under the special needs scholarship program. Your school district had the option to increase property taxes to replace this aid reduction.”

SB59,1036 Section 1036. 76.636 (1) (e) 3. of the statutes is amended to read: