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| Monday, October 12, 1998 Governor Tommy G. Thompson Secretary Linda Stewart | News Media Contact DWD News Office 608/267-4400 e-mail: news@dwd.state.wi.us fax: 608/266-1784 |
For more information, contact:
Howard Bernstein, 608/266-9427
Carol Henry, 608/266-0252
Public hearings underway on
draft child support rules
Madison, Wis. -- Proposed rules to implement a new state child support enforcement law now are available for public inspection and comment, a state agency announced today.
The State Department of Workforce Development (DWD) said public hearings on the draft also are being held through Oct. 27 in Appleton, Milwaukee and Menomonie.
The hearings:
Appleton -- Tuesday (Oct. 13), Fox Valley Technical College, Room G1-10, 1825 N. Bluemound Dr.
Milwaukee -- Oct. 20, Downtown State Office Building, Room 45, 819 N. 6th St.
Menomonie -- Oct. 27, Chippewa Valley Technical College, Room 113-115, 403 Technical Drive East.
All hearings are on Tuesdays and begin at 1 p.m. The first hearing, in Madison, was held Oct. 2.
Written comments by those unable to attend the hearing may be submitted until Nov. 6 for inclusion in the summary of public comments to be offered to the Wisconsin Legislature for its review.
Wisconsin Act 191, effective May 1, expanded the authority of the Department and county child support agencies to use administrative remedies to enforce child support orders.
The new law requires the development of administrative rules by DWD and legislative review before DWD can begin implementing various provisions of the statute.
The Department "anticipates adoption and initial enforcement of the final rules beginning in early 1999," said J. Jean Rogers, administrator of the Economic Support Division.
"Implementation of the new enforcement approaches covered in the rule will begin in 1999, but the new procedures will be rolled out over a two year period," she said.
"That’s because extensive changes in the state’s child support computer system (KIDS) are necessary to implement a number of the new procedures."
Key provisions of the rules explain the procedures for:
These procedures also will become operational in 1999.
Rogers said the state legislation allows some administrative enforcement actions to be suspended when a payer successfully negotiates an alternative payment plan designed to reduce child support arrears, as long as the payer meets the requirements of the plan.
The draft rule outlines the process for negotiating payment plans, the factors that must be considered when establishing the plans, and the possible terms and conditions of the agreements.
The Department and child support agencies also were given the power under the law to issue administrative subpoenas to obtain financial information and other documentation necessary for child support administration.
The draft rules would set penalties for failure to comply at up to $25 if unintentional, or $500 if the failure was "intentional and designed to hide, falsify or provide incomplete information," Rogers said.
The draft rules also explain how the Department will enter into agreements with financial institutions to perform quarterly record-matching, to determine whether a delinquent child support payer has hidden income.
Anyone attending the public hearing to make oral presentations also is asked to submit that testimony in writing.
Written comments should be submitted to, or a copy of the rules obtained from, Amber Erickson, DWD Child Support Bureau, 201 E. Washington Ave., Madison 53707 or by e-mail addressed to <
erickam@dwd.state.wi.us>. Copies also may be requested by calling her at 608/261-266-6994.(Note: A complete text of the draft rules follows.)
State of Wisconsin
Department of Workforce Development
DWD 43
CHILD SUPPORT ADMINISTRATIVE ENFORCEMENT
The Wisconsin Department of Workforce Development proposes an order to renumber chs. HSS 80 to 82 as DWD 40 to 42, and to create ch. DWD 43, relating to child support administrative enforcement.
Analysis
Authority for rule. Secs. 49.22 (2m)(d), 49.853 (1)(dm) and (2), 49.854 (17), 49.858 (2), and 767.027 (2), Stats.
Statutes interpreted. Secs. 49.22, 49.853, 49.854, 49.858 and 767.027, Stats.
Summary. In compliance with the child support enforcement requirements in the federal Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (P.L. 104-193), 1997 Wisconsin Act 191 became effective May 1, 1998. The Act expands the authority of the Department of Workforce Development and county child support agencies to establish and acknowledge paternity, and to enforce child support orders. The Act requires the promulgation of administrative rules before the Department may begin implementing several provisions in the Act. These are the proposed rules for the implementation of 1997 Wisconsin Act 191.
According to the Act, past-due support constitutes a lien against all of a child support payer’s real and personal property. Child support liens will be placed on the child support lien docket and electronically delivered to the county registers of deeds. The rule describes the threshold that arrears in a court case must equal or exceed before a payer is placed on the child support lien docket, the calculation of the lien amount, the filing date of the lien, and lien payments.
To enforce a lien, the Department or child support agency may use administrative enforcement actions authorized in Act 191. These administrative remedies include suspending and denying professional, occupational, recreational, and driver licenses; seizing real and personal property, including financial accounts; and intercepting judgments, settlements, and lump-sum pension payments. The Department or child support agency may initiate these administrative remedies if arrears owed by a payer in a court case equal or exceed a threshold. For each administrative enforcement action, the rule defines the threshold that arrears in a court case must equal or exceed before the Department or child support agency may initiate that action. Generally, that threshold for license suspension and account seizure is 300% of the monthly amount due, and the threshold for real and personal property seizure is 600% of the monthly amount due.
In addition to considering the arrears in a court case, when considering property seizure as an administrative remedy, the Department or child support agency must determine whether property identified for seizure has sufficient value before initiating any seizure process. The rule specifies the factors that must be considered when determining the value of the property, and the amount that the property value must exceed before seizure may be initiated. In general, the funds in a financial account must exceed $500, the payer’s equity in personal property must exceed $500, and the payer’s equity in real property must exceed 20 percent of the payer’s proportionate share of the property’s fair market value, before the Department or child support agency may seize the property.
Child support payers have an opportunity to negotiate alternative payment plans to suspend the execution of administrative enforcement actions. The rule outlines the process for negotiating payment plans, the factors that must be considered when establishing payment plans, and the possible terms and conditions of payment plans. The rule also defines noncompliance with a payment plan, and provides payers with an opportunity to renegotiate payment plans.
Notice of lien and administrative enforcement actions may be provided by regular mail to the last-known address of a child support payer. According to Act 191, notice requirements are met if notice of lien or administrative enforcement action has been sent to the last-known address provided by the payer, and a diligent effort has been made to ascertain the location of the payer. The rule outlines the process the department and child support agency will use to verify and obtain an address from a postmaster, and the diligent efforts that will be taken to obtain the current address of a payer.
The rule describes the circumstances in which a payee will be notified that an administrative enforcement action has been initiated against the payer. In general, these are circumstances in which the Department or the child support agency is aware that the payer is subject to a protective order or there is otherwise reason to believe that a payee or child may be harmed physically or emotionally by the payer.
The Department and the child support agencies have the authority to request from any person information that they determine necessary for administering the child support program. Act 191 gives the Department and child support agencies additional authority to issue administrative subpoenas to obtain financial information and other documentation necessary for child support administration. Under the Act, the Department or child support agency may require individuals or entities to pay an administrative forfeiture for failure to comply with an administrative subpoena or a request for information. The rule specifies the administrative forfeiture that may be imposed for failure to comply with an administrative subpoena or a request for information, and when the administrative forfeiture may be imposed. Generally, an administrative forfeiture for a failure to comply will not exceed $25, but if the failure to comply is the result of intentional conduct by the subpoena respondent to hide information, falsify information, or provide incomplete information, the administrative forfeiture will equal $500.
Act 191 requires the Department and financial institutions operating in the state to enter into agreements to perform quarterly record matching, using automation to the extent feasible, to determine whether a delinquent child support payer has an ownership interest in a financial account. The rule outlines the procedures DWD will use to enter into agreements with financial institutions and requires DWD to reimburse financial institutions for participating in the data match program. In general, financial institutions will be reimbursed $100 per quarter for performing an automated data match with the department.
The Department’s goal is to begin implementation of these provisions in 1999.
SECTION 1. Chs. HSS 80 to 82 are renumbered chs. DWD 40 to 42.
SECTION 2. Chapter DWD 43 is created to read:
DWD 43
CHILD SUPPORT ADMINISTRATIVE ENFORCEMENT
DWD 43.01 Authority and purpose. This chapter is promulgated under the authority of ss. 49.22 (2m)(d), 49.853 (1)(dm) and (2), 49.854 (17), 49.858 (2), and 767.027 (2), Stats., for the purpose of administering the child support program under s. 49.22, Stats.
DWD 43.02 Applicability. This chapter applies to the department and county child support agencies under s. 59.53 (5), Stats., individuals participating in the child support program under s. 49.22, Stats., financial institutions operating within the state, and persons subject to administrative subpoenas issued in accordance with s. 49.22 (2m)(b), Stats., or requests for information issued in accordance with s. 49.22 (2m)(a), Stats.
DWD 43.03 Definitions. In this chapter:
(1) "Account" has the meaning given in s. 49.853 (1)(a), Stats.
(2) "Administrative enforcement" means the department or a child support agency:
(a) Puts child support liens into effect by placing them on the child support lien docket and electronically delivers the docket to the county registers of deeds.
(b) Receives proceeds from the sale of property when there is a child support lien against the property, and either the payer has transferred the property or the property has been seized and sold by an entity other than the department or a child support agency.
(c) Takes any administrative enforcement action.
(3) "Administrative enforcement action" means any of the following actions taken by the Department or child support agency to enforce a lien: (a) the intercept of lump-sum pension payments in accordance with s. 49.852, Stats.; (b) the seizure of accounts at financial institutions in accordance with s. 49.854(5), Stats.; (c) the seizure of personal property in accordance with s. 49.854(6), Stats.; (d) the seizure of real property in accordance with s. 49.854(7), Stats.; (e) the intercept of judgments and settlements in accordance with s. 49.856, Stats.; and (f) the denial, nonrenewal, restriction, or suspension of professional, occupational, recreational, or driver licenses for failure to pay support in accordance with s. 49.858, Stats.
(4) "Alternative payment plan" or "plan" means a negotiated agreement between a child support agency and a payer, or a plan set by the court, which establishes terms for the payment of the arrearage debt.
(5) "Arrearage debt" means the sum of child support arrears, maintenance arrears, family support arrears, missed payments on past support, missed payments on lying-in costs, and missed payments on other medical support including missed lump-sum payments for medical support in a court case.
(6) "Child support agency" or "agency" means the county child support agency under s. 59.53 (5), Stats.
(7) "Child support lien" or "lien" means an administrative lien that arises by operation of law against all of a payer’s real and personal property when he or she owes an arrearage debt.
(8) "Department" means the Wisconsin Department of Workforce Development.
(9) "Equity" means the fair market value minus the liens on that property with priority over the child support lien.
(10) "Expected monthly amount due," for a court-ordered provision expressed only as a percentage of income, equals the identified monthly income multiplied by the percentage ordered for the provision. To determine a payer’s identified monthly income, a child support agency shall use the best available information which includes, but is not limited to, the income of the payer during the period of the most recent reconciliation, income information reported by the payer’s employer under s. 767.265(3h), Stats., information provided verbally or in writing to the child support agency by the payer, or tax returns or records.
(11) "Failure to comply with an administrative subpoena or a request for information" means that the subpoena respondent did not provide the requested information within seven days after receiving the administrative subpoena or request for information, or that the subpoena respondent provided false or incomplete information.
(12) "Financial institution" or "institution" has the meaning given in s. 49.853 (1)(c), Stats.
(13) "Gross income" has the meaning given in s. DWD 40.02 (13) (formerly HSS 80.02 (13).
(14) "Lien-eligible amount" means the amount in a court case that is eligible to be placed on the lien docket.
(15) "Monthly amount due" is the sum of all court-ordered provisions for periodic payments due in one month in a court case including arrearage debts.
(16) "Monthly charge" is the sum of court-ordered provisions for monthly payments on child support, family support, maintenance, lying-in costs, past support, and other medical support in a court case. The monthly charge does not include court-ordered provisions for periodic payments on arrearage debts.
(17) "Ownership interest" is defined as any personal financial interest.
NOTE: This definition applies to the financial record matching program under sec. 49.853(3) and (4), Stats.
(18) "Payee" has the meaning given in s. DWD 40.02 (22) (formerly HSS 80.02 (22).
(19) "Payer" has the meaning given in s. DWD 40.02 (23) (formerly HSS 80.02 (23)).
(20) "Property" has the meaning given in s. 49.854 (1)(e), Stats.
(21) "Subpoena respondent" means the person from whom information is requested in an administrative subpoena or request for information.
(22) "Threshold" is an amount, expressed as either a percentage of the monthly amount due, a fixed dollar amount, or both, that the lien-eligible amount or lien amount must equal or exceed before administrative enforcement may be used in a court case.
DWD 43.04 Written notice of enforcement actions. (1) APPLICATION. This section applies to notices issued to the payer by the department under ss. 49.852 (2), 49.854 (3)(a) and (ag), 49.854 (5)(d), 49.854 (6)(a), (d), and (e), 49.854 (7)(a), (d), and (e), 49.856 (3), and 49.857 (3)(a), (am), and (b), Stats.
(2) USE OF MAIL. The department or child support agency may send notices related to the administrative enforcement of a child support order by regular mail to the last-known mailing address provided by the payer under s. 767.263 (2), Stats. If the last-known mailing address for a payer is unverified, or a written notice sent to a payer at his or her last-known verified mailing address is returned, the department or child support agency shall contact the postmaster of the zip code of the address. If the postmaster verifies the unverified mailing address or provides a new verified address, the department or county child support agency shall send written notice to the mailing address provided by the postmaster. If the postmaster is unable to verify the last-known mailing address, or provide a new verified address, the department or child support agency shall send notice to the current employer mailing address provided by the payer under s. 767.263 (2), Stats. If notice to the employer is returned, or the payer has not provided a current employer mailing address, the department or child support agency shall use diligent effort to obtain a mailing address for the payer.
NOTE: Under sec. 767.263 (2), Stats.,
each party to a child support order is required to provide the child support agency with his or her residential and mailing address and the address and telephone number of his or her employer. A party shall advise the child support agency of any change in such information within 10 business days after the change.
(3) DILIGENT EFFORT. Diligent effort means the following for each administrative enforcement action:
(a) License suspension and denial. To obtain and use the payer’s address of record at a state licensing agency to provide notice under ss. 49.857 (3)(a),(am), and (b), Stats.
(b) Account seizure. To obtain and use the payer’s address of record at a financial institution to provide notice under s. 49.854 (5) (d), Stats.
(c) Personal property seizure. To obtain and use the payer’s address of record at a state agency that titles personal property to provide notice under ss. 49.854 (6)(a), (d), and (e), Stats., if the personal property subject to seizure is titled.
(d) Real property seizure. To obtain and use the payer’s address of record on the tax bill for the property subject to seizure to provide notice under ss. 49.854 (7)(a), (d), and (e), Stats.
(e) Pension intercept. To obtain and use the payer’s address of record at the entity administering a pension plan to provide notice under s. 49.852 (2), Stats.
(f) Judgment and settlement intercept. To obtain and use the payer’s address of record with the judgment debtor to provide notice under s. 49.856 (3), Stats.
(4) LOCATE RESOURCES. When the department or a child support agency sends a notice and the notice is returned, the department or a child support agency shall use all appropriate automated federal, state, and local locate resources and interfaces to ascertain a payer’s current mailing address.
(5) NOTICE TO JOINT-PROPERTY HOLDERS. The department or child support agency shall provide notice related to the seizure of property to any joint-property holder as follows:
(a) Account seizure. Notice under s. 49.854 (5)(d), Stats., shall be sent to the address of record at the financial institution.
(b) Personal property seizure. Notice under s. 49.854 (6)(a), Stats., shall be sent to the address of record at a state agency that titles personal property if the personal property subject to seizure is titled.
(c) Real property seizure. Notice under ss. 49.854 (7)(a) and (e), Stats., shall be sent to the address of record on the tax bill for the property subject to seizure.
NOTE: Pursuant to s. 49.854 (5)(d), (6)(a), and (7)(a) and (e), Stats., the department or child support agency is required to provide a notice to any person with an ownership interest in a property subject to seizure. The joint-property holder has 20 business days after the date of the notice to request a hearing to protect the portion of the property that is attributable to his or her net contributions to the property.
DWD 43.05 Administrative forfeitures for noncompliance with administrative subpoenas and requests for information. (1) MAXIMUM ADMINISTRATIVE FORFEITURES. The department or a child support agency may require a subpoena respondent who fails to comply with an administrative subpoena issued in accordance with s. 49.22(2m)(b), Stats., or a request for information made under s. 49.22(2m)(a), Stats., to pay an administrative forfeiture not to exceed $25. If the failure to comply with an administrative subpoena or request for information is the result of intentional conduct by the subpoena respondent to hide information, falsify information, or provide incomplete information, the department or child support agency may require the subpoena respondent to pay an administrative forfeiture of $500.
(2) WHEN IMPOSED. The department or a child support agency shall determine when it is appropriate to impose an administrative forfeiture for failure to comply with a request for information or an administrative subpoena. In accordance with s. 49.22(2m)(a), Stats., a subpoena respondent who fails to comply with a request for information may not be subject to administrative forfeiture if access to the requested information is prohibited or restricted by law, or if the subpoena respondent has good cause for refusing to cooperate with the request.
DWD 43.06 Liens. (1) LIEN DOCKET. (a) The department shall maintain a statewide support lien docket in accordance with s. 49.854(2)(b) and (c), Stats. The department shall be responsible for periodically updating the lien docket and providing a copy of the lien docket to the register of deeds and the child support agency in each county.
(b) The department or the child support agency shall be responsible for responding to inquiries concerning information recorded on the lien docket. The county register of deeds may refer any person who has an inquiry about the lien docket to the department or the child support agency.
(2) WHEN ENTERED. The department shall place a payer on the lien docket when the lien-eligible amount in one or more of the payer’s court cases equals or exceeds the lien threshold. If an individual is a payer in more than one court case, each court case will be evaluated separately to determine whether the lien threshold has been met, and to determine the lien amount.
(3) DETERMINING THE LIEN-ELIGIBLE AMOUNT. (a) The lien-eligible amount equals the difference between the monthly charge and the arrearage debt in a court case.
(b) A court-ordered provision expressed only as a percentage of income shall not be included in the calculation of the monthly charge.
(4) DETERMINING WHETHER THE LIEN THRESHOLD HAS BEEN MET OR EXCEEDED. (a) The department shall place a payer on the lien docket if the lien-eligible amount in a court case equals or exceeds the monthly amount due or $500, whichever is greater.
(b) Determining the monthly amount due. 1. A court-ordered provision expressed only as a percentage of income shall not be included in the calculation of the monthly amount due.
2. For a court-ordered provision requiring only a fixed sum, the monthly amount due shall be calculated using the fixed sum amount.
3. For a court-ordered provision requiring the greater or lesser of either a percentage of income or a fixed sum, the monthly amount due shall be the calculated using the fixed sum amount.
(5) LIEN AMOUNT The lien amount on the lien docket shall equal the sum of lien-eligible amounts from the court cases in which the lien-eligible amount meets or exceeds the lien threshold. The lien amount may include court-ordered liens made pursuant to s. 767.30, Stats.
(6) PAYMENT OF LIEN. (a) Any payment toward the lien amount shall:
1. Indicate that the payment is a lien payment.
2. Specify the court case or cases in which the lien arose.
(b) A payment to satisfy a lien shall meet the conditions specified in (a) and be in an amount equal to the lien amount on the child support lien docket.
(c) The child support agency shall distribute any support payment made that does not meet the conditions in par. (a) or (b) in accordance with s. 767.25(6), Stats.
(d) Payments toward a court-ordered lien under s. 767.30, Stats., shall be credited toward the child support lien, if appropriate. Payments toward the child support lien shall be credited toward a court-ordered lien under s. 767.30, Stats., if appropriate.
(7) FILING DATE. The filing date on the lien docket is the date that a lien amount was first recorded on the docket for a payer. The filing date does not change if the lien amount is adjusted up or down within five years after the filing date.
(8) REFILING A LIEN. (a) At the end of the five year effective period of a lien,
the department or a child support agency may refile the lien if the lien-eligible amount equals or exceeds the lien threshold. When a lien is refiled, the date on which the lien is refiled shall become the date of filing on the lien docket, and a new five-year period shall commence.
NOTE: Under sec. 49.854(12)(a), Stats., a child support lien is effective for a period of five years from the filing date.
(b) When a lien is refiled, the department or the child support agency shall send the payer a notice that the lien has been refiled.
NOTE: Upon receiving notice, the payer has the opportunity to request a financial records review and a court review under sec. 49.854(3)(ag), Stats., or a direct appeal for a court review under sec. 49.854(3)(ar), Stats.
DWD 43.07 Financial record review. (1) In accordance with s. 49.853 (3)(ag), Stats., a payer may request a financial records and court order review (financial record review) within 10 business days of the date of the notice of lien. The financial record review will determine the correctness of the financial records in a court case and will cover only the period of time after the last judicial review or other account review.
NOTE: The procedure for a financial records and court order review is specified in sec. 49.854(3)(ag), Stats.
(2) Upon receiving a request for a financial record review, the child support agency shall provide the relevant financial records and information explaining how to interpret the records to the payer.
NOTE: Under sec. 49.854(3)(ag), Stats., the department or child support agency may not charge the payer for providing the payment records or for performing the financial record review.
(3) Within 20 business days after receiving the relevant financial records, the payer shall provide a statement of any alleged error to the child support agency. If the payer provides a statement of alleged error within the time frame, the child support agency shall provide a written determination as to whether the lien against the payer is in the correct amount. The child support agency must provide the written determination within 60 days after the date of the payer’s request for a financial record review.
DWD 43.08 Seizure of property. (1) DEPARTMENT’S INITIAL ASSUMPTION AS TO JOINTLY OWNED PROPERTY. When the department or a child support agency acts under s. 49.854, Stats., the department or the child support agency shall initially assume that a payer’s ownership interest in property that is jointly owned with one or more other persons is an equal pro rata share based on the number of joint owners. The department or child support agency shall proceed on this basis unless a person requests a hearing under s. 49.854(7m), Stats., in which case the department or child support agency shall be bound be the decision of the family court commissioner or the reviewing court.
(2) SEIZURE OF FINANCIAL ACCOUNTS. (a) Minimum for seizure. The department or a child support agency may not seize an account under s. 49.854 (5), Stats., unless the sum of the funds in all of the payer’s financial accounts, minus the $5 levy fee under s. 49.854 (11)(a), Stats., and any early withdrawal penalty under s. 49.854 (5)(e), Stats., exceeds $500 at the time of seizure.
(b) Amount to be seized. The department or a child support agency may only seize funds in excess of $500 across all of a payer’s accounts. If accounts are jointly-held, and the joint-account holder has requested a hearing under s. 49.854 (7m), Stats., the department or child support agency may not seize any amount that the court determines is attributable to the contributions of the joint-account holder.
(3) SEIZURE OF PERSONAL PROPERTY OTHER THAN FINANCIAL ACCOUNTS. The department or a child support agency may not seize personal property under s. 49.854(6), Stats., unless the lien exceeds $500.
(4) VALUATION OF JOINTLY-HELD REAL AND PERSONAL PROPERTY. For the purpose of determining whether jointly-held property (other than financial accounts) that is subject to lien has sufficient value to be seized, the department or child support agency shall assume that the payer’s equity in the property is the payer’s proportionate share of the property’s equity.
(5) SEIZURE OF REAL PROPERTY. The department or child support agency may not seize real property under s. 49.854(7), Stats., unless both of the following conditions are met:
(a) The payer’s equity in the property, minus expected levy fees, exceeds 10 percent of the payer’s proportionate share of the property’s fair market value.
(b) The lien exceeds $5,000.
(6) JOINTLY-HELD PROPERTY AND COURT HEARINGS. If a financial account, personal property, or real property is jointly held, a person other than the payer may request a hearing under s. 49.854(7m), Stats., for a determination of the proportion of the value of the property that is attributable to his or her net contribution to the property, and may make the request in any county that initiated property seizure. If the joint-property holder does not request a hearing, the department or child support agency shall seize the payer’s proportionate share of the property.
DWD 43.09 Notice to the payee of enforcement proceedings. If the child support agency is aware that a payer is subject to a protective order with respect to a payee or child in his or her court case, or the child support agency has reason to believe that a payee or child in a payer’s court cases may be harmed physically or emotionally by the payer, the department or the child support agency shall provide written notice to said payee when an administrative enforcement action has been initiated against the payer. The notice to the payee must be provided within 5 business days of the date of the notice sent to the payer in accordance with s. 49.852(2), 49.854(5)(b), 49.854(6)(a), 49.854(7)(a), 49.856(2), or 49.857(3)(a), Stats.
DWD 43.10 Thresholds for administrative enforcement actions. (1) LICENSE SUSPENSION. A child support agency may initiate license suspension if there is a lien against a payer, and the lien amount in the payer’s court case equals or exceeds 300 percent of the monthly amount due in the court case.
(2) ACCOUNT SEIZURE. A child support agency may initiate account seizure if there is a lien against a payer, and the lien amount in the payer’s court case equals or exceeds 300 percent of the monthly amount due in the court case or $1,000, whichever is greater.
(3) REAL AND PERSONAL PROPERTY SEIZURE. A child support agency may initiate real or personal property seizure if there is a lien against a payer, and the lien amount in the payer’s court case equals or exceeds 600 percent of the monthly amount due in the court case.
(4) INTERCEPT OF LUMP-SUM PENSION PAYMENTS, JUDGMENTS, AND SETTLEMENTS. A child support agency may initiate the intercept of lump-sum pension payments, judgments, and settlements when a payer has been placed on the child support lien docket.
(5) DETERMINING THE MONTHLY AMOUNT DUE. (a) For a court-ordered provision expressed only as a percentage of income, the monthly amount due shall be calculated using the expected monthly amount due.
(b) For a court-ordered provision requiring only a fixed sum, the monthly amount due shall be calculated using the fixed sum amount.
(c) For a court-ordered provision requiring the greater or lesser of either a percentage of income or a fixed sum, the monthly amount due shall be the calculated using the fixed sum amount.
DWD 43.11 Alternative Payment Plans. (1) APPLICABILITY OF ALTERNATIVE PAYMENT PLANS. When the department or a child support agency enforces a lien through seizure of real property or personal property, seizure of financial accounts, or denial, suspension, nonrenewal, restriction, or suspension of licenses, the payer may negotiate an alternative payment plan with the child support agency.
(2) NEGOTIATION OF AN ALTERNATIVE PAYMENT PLAN AFTER RECEIVING NOTICE OF AN ADMINISTRATIVE ENFORCEMENT ACTION. (a) The notices issued under ss. 49.854(5)(b), 49.854(6)(a), 49.854(7)(a), or 49.857(3)(a) or (am), Stats., shall inform the payer of the opportunity to negotiate an alternative payment plan, and shall notify the payer of the circumstances under which the payer may request a court hearing on mistake of fact and on the reasonableness of the plan.
NOTE: Under ss. 49.854 (5)(d), (6)(b), and (7)(b), and ss. 49.857(3)(a) and (am), notices must inform the payer of his or her opportunity to request a hearing within 20 business days after the date of the notice.
(b) A payer may submit a written request to the child support agency to negotiate an alternative payment plan within 10 business days after the date of notice under ss. 49.854(5)(b), 49.854(6)(a), 49.854(7)(a), or 49.857(3)(a) or (am), Stats. The payer may submit a written request for a court hearing on the reasonableness of the plan within 20 business days after the date of notice under ss. 49.854(5)(b), 49.854(6)(a), 49.854(7)(a), or 49.857 (3)(a) or (am), Stats.
(c) If the child support agency and the payer are unable to reach agreement on the terms of a plan, and the payer requested a court hearing within 20 business days after the date of notice under ss. 49.854(5)(b), 49.854(6)(a), 49.854(7)(a), or 49.857 (3)(a) or (am), Stats., a hearing will be conducted. If the court determines that the plan is not reasonable, it may establish a plan by setting payments pursuant to s. 767.30 (1), Stats.
(3) NEGOTIATION OF AN ALTERNATIVE PAYMENT PLAN AFTER COURT DETERMINATION ON MISTAKE OF FACT. If a court determines that a payer owes arrears as a result of a review of mistake of fact under ss. 49.854(5)(f), 49.854(6)(c), 49.854(7)(c), or 49.857(3)(ac) or (ar), Stats., and the payer did not attempt to negotiate a plan prior to the court review, the payer may, within 10 business days of the court determination, submit a written request to the child support agency to negotiate a plan.
(4) NEGOTIATION OF AN ALTERNATIVE PAYMENT PLAN AFTER THE RESTRICTION, LIMITATION, SUSPENSION OR REFUSAL OF A LICENSE. Pursuant to s. 49.857 (3)(d)1., Stats., a payer may negotiate a plan with the department or child support agency to have a license issued or renewed after it has been restricted, limited, suspended or refused.
(5) STAYING ADMINISTRATIVE ENFORCEMENT ACTIONS. Administrative enforcement actions shall be stayed by the child support agency that initiated an action while the payer and the agency are negotiating a plan, or, if a court review of the reasonableness of the plan is requested, until the court determination has been made. To stay an administrative enforcement action means the following:
(a) License suspension and denial. The payer shall not be certified to state licensing agencies for denial, nonrenewal, restriction, or suspension of professional, occupational, recreational, or driver licenses.
(b) Account seizure. Any financial accounts frozen under s. 49.854(5)(b), Stats., shall remain frozen and shall not be seized.
(c) Personal property seizure. Personal property that has been seized under s. 49.854 (6), Stats., shall be held by the department or the sheriff and shall not be sold.
(d) Real property seizure. Real property shall not be seized and sold.
(6) SUSPENSION OF ADMINISTRATIVE ENFORCEMENT ACTIONS. (a) When a plan has been negotiated between the payer and the child support agency, or the court has determined that a plan is reasonable or has established a plan pursuant to s. 767.30 (1), Stats., the child support agency in the county in which the plan is set shall suspend administrative enforcement actions as long as the payer complies with the plan.
(b) If a payer makes a full arrearage debt payment, prior to the completion of the administrative enforcement action, the action will be suspended.
(7) PROCEEDING WITH ADMINISTRATIVE ENFORCEMENT ACTIONS. If the court determines under (2)(c) that a plan is not reasonable and does not set a plan, or the payer and child support agency are unable to negotiate a plan under (3), the child support agency may continue with the administrative enforcement action.
(8) DISCLOSURE OF INCOME AND ASSETS. The request to negotiate a plan shall include an agreement by the payer to provide the child support agency with a full disclosure of income and assets available. The payer must provide complete income and assets information to the child support agency within 5 business days of the request to negotiate a payment plan.
(9) CASE-BY-CASE BASIS. A child support agency shall negotiate a plan with a payer only on cases venued in its county.
(10) TERMS OF AN ALTERNATIVE PAYMENT PLAN. (a) An alternative payment plan may include a lump-sum payment, or periodic payments on the arrearage debt, or both, subject to the following standards:
1. Any periodic payment established under the plan, when combined with any other court-ordered payment of support, may not decrease the payer’s gross income to an amount below 100% of the poverty line established under 42 U.S.C. 9902 (2) unless the payer agrees otherwise.
2. When establishing an alternative payment plan, the child support agency shall consider the factors used by the court in determining whether the use of the percentage standard is unfair to the child or any of the parties, as specified in s. 46.10(14), 767.25 , or 767.51, Stats.
(b) In a case in which it is not possible to establish a periodic payment plan without reducing a payer’s gross income to below the poverty line, the child support agency is not prohibited from negotiating a lump-sum payment with the payer, and may elect to suspend administrative enforcement action.
(c) Upon agreement by the payer, periodic payments under the plan may be made through income withholding in amounts in addition to the amount ordered under s. 767.265 (1).
(11) DEFAULT ON AN ALTERNATIVE PAYMENT PLAN. In the event that the payer defaults on the plan by failure either to make the full lump-sum payment within one month of the date that the payment is due, or to pay an amount equal to the amount due in one month under the plan, the child support agency shall notify the payer that an administrative enforcement action shall be implemented unless the lien is paid in full.
(12) RENEGOTIATION OF AN ALTERNATIVE PAYMENT PLAN. After the entry of an alternative payment plan, the plan may be renegotiated upon the written request of the payer or child support agency if the requesting party can show a substantial change in circumstances. A substantial change in circumstances includes, but is not limited to, the following:
(a) A change in the payer’s income or assets, including the sale or purchase of real or personal property.
(b) A change in the payer’s earning capacity.
(c) Any other factor that the child support agency determines is relevant.
(13) PAYERS WITH COURT CASES IN MULTIPLE COUNTIES. (a) When multiple counties initiate administrative enforcement actions against the same payer, and the payer negotiates an alternative payment plan in one of the initiating counties, the plan does not preclude any other county from proceeding with its administrative enforcement action.
(b) If a county which has a lien against a payer negotiates an alternative payment plan with the payer, the county is not precluded from receiving proceeds from the sale of the payer’s real or personal property under the lien including, but not limited to, proceeds from administrative enforcement actions taken by other counties.
DWD 43.16 Agreements with financial institutions. (1) AUTOMATED FINANCIAL INSTITUTIONS. (a) The department shall enter into agreements with automated financial institutions to operate an automated financial record matching program. In the agreement, the automated financial institution shall indicate the following:
1. The financial institution matching option in s. 49.853(3), Stats., or the state matching option in s. 49.853(4), Stats., as the method for participating in the financial record matching program.
2. The media for transmitting data to the department or receiving data from the department.
(b) The financial institution shall sign the agreement and return the agreement to the department within 20 business days of receipt of the agreement.
(c) When a financial institution returns to the department an agreement that has met the conditions in par. (a), the department shall sign the agreement and provide the financial institution with a copy of the agreement.
(d) In order for a financial institution to change the conditions specified in par. (a), it shall contact the department at least 60 days prior to the beginning of the next quarterly record match.
(e) The data an institution provides to the department shall be in a standard format prescribed by the department, which the department shall design to provide identifying and account information meeting federal specifications for automated financial record matching.
(2) NON-AUTOMATED FINANCIAL INSTITUTIONS. A financial institution that does not maintain account information in an automated format and is unable to provide an automated listing shall provide a written list of account holder names, with social security numbers, to the department. Upon receipt of such a written list, the department may conduct the record match and may send a request for account information that is based on the records match to the financial institution.
(3) REIMBURSEMENT FOR PARTICIPATION IN THE AUTOMATED FINANCIAL RECORD MATCHING PROGRAM. In accordance with s. 49.853(2), Stats., the department shall reimburse a financial institution $100 per quarter for participation in a fully automated financial record matching program which meets the requirements of s. 49.853(3) or (4), Stats., and the requirements specified by the department under sub. (1)(e).
EFFECTIVE DATE. This rule shall take effect on the first day of the month following publication in the Wisconsin administrative register as provided in s.227.22(2)(intro.), Stats.
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