2013 - 2014 LEGISLATURE
January 27, 2014 - Introduced by Senators Lasee, Schultz, Olsen, Grothman and
L. Taylor, cosponsored by Representatives Jacque, Thiesfeldt, Kahl,
Steineke, Kulp, Sanfelippo, Ballweg, Vruwink, Tittl, Bies, Strachota,
Pridemore, Murtha, Jagler and Krug. Referred to Committee on Insurance
and Housing.
SB517,1,9 1An Act to repeal 62.69 (2) (g); to renumber 71.935 (2); to renumber and
2amend
66.0809 (3), 66.0809 (5) (b) 1. and 71.935 (1) (a); to consolidate,
3renumber and amend
66.0809 (5) (b) (intro.) and 2.; to amend 66.0809 (5) (c),
466.0809 (5) (d), 71.93 (3) (a) 6., 71.935 (1) (b), 71.935 (3) (a), 71.935 (3) (b) and
571.935 (4); and to create 66.0809 (3m), 66.0809 (5) (ag), 66.0809 (5) (bm),
666.0809 (7), 66.0809 (8), 66.0809 (9), 66.0809 (10), 71.935 (1) (a) 2., 71.935 (2)
7(b), 73.03 (72) and 196.37 (5) of the statutes; relating to: collection of certain
8utility arrearages by a municipal utility and the provision of municipal utility
9service to tenants.
Analysis by the Legislative Reference Bureau
Under current law, if a municipal utility provides utility service to a property
and payment for the service is in arrears, the utility has a lien on the property and
may have arrearages inserted as a tax on the property if the following procedure is
followed. On October 15, the utility or county treasurer must provide the owner or
occupant of the property with a written notice of payment due. The notice must
specify the amount of the arrearage and any penalty and must state that: 1) if
payment is not received by November 1, an additional penalty will be assessed; and

2) if payment is not received by November 15, the arrearage amount and any
penalties will become a lien on the property that will be collected as a tax on the
property. On November 16, the utility or treasurer must certify and file with the
county clerk a list of all properties for which a notice of arrears was given and for
which arrears remain unpaid. The delinquent amount then becomes a lien upon the
property and the clerk must insert the delinquent amount and any penalties as a tax
against the property.
This bill provides that, if the municipal utility uses the arrearage collection
procedure for a rental dwelling unit and provides a notice of arrearage to the owner,
the municipality has a lien on the property of a tenant who is responsible for the
arrearage. The utility or treasurer must then certify and file with the clerk of courts
a list of those tenants. Also under this bill, if the owner pays the arrearage, the
municipality must transfer the lien to the owner.
Also under current law, if a municipal utility provides electric or water service
to a rental dwelling unit and the owner of the rental property provides the utility
with certain information, including the name and address of the tenant who is
responsible for paying for utility service, the utility may use the arrearage collection
procedure described above only if the utility follows certain additional procedures for
notifying both the owner and the tenant about any payments that are past due.
This bill allows an owner of a rental unit to request that a municipal utility
terminate electric service to a rental dwelling unit if the tenant's utility charges are
past due and the tenant has received certain notices.
This bill also permits or requires certain actions of a municipal utility, including
the following:
1) A municipal utility must refuse to establish electric utility service at a rental
dwelling unit rented by a tenant if the tenant has outstanding past-due charges for
utility service from the municipal utility, and must inform the owner of the rental
unit of the past-due charges upon the owner's request.
2) A municipal utility is not required to offer a customer who is a tenant at a
rental dwelling unit a deferred payment agreement.
3) A municipal utility may adopt application, deposit, disconnection, or
collection rules and practices that distinguish between customers based upon
whether the customer is an owner or a lessee of the property receiving utility service
where the possibility exists for unpaid bills of a tenant to become a lien.
Under current law, if any person owes a debt of at least $20 to a county or
municipality, and if the debt has been reduced to a judgment or the county or
municipality has provided the debtor reasonable notice and an opportunity to be
heard with regard to the debt, the county or municipality may certify the debt to the
Department of Revenue (DOR) so that DOR may collect the debt by subtracting the
debt amount from any tax refund owed to the debtor. Under current law, for purposes
of certifying debt to DOR, a "municipality" means any city, village, or town, and
includes any entity providing consolidated services among cities, villages, and
towns.
Under the bill, if a municipality or owner of a rental dwelling unit has a lien
against a tenant for unpaid utility services, the municipality or property owner may

certify that debt to DOR so that DOR may collect the debt by subtracting the lien
amount from any tax refund owed to the tenant.
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:
SB517,1 1Section 1. 62.69 (2) (g) of the statutes is repealed.
SB517,2 2Section 2. 66.0809 (3) of the statutes is renumbered 66.0809 (3) (a) and
3amended to read:
SB517,3,204 66.0809 (3) (a) Except as provided in subs. (4) and (5), on October 15 in each year
5notice shall be given to the owner or occupant of all the lots or parcels of real estate
6to which utility service has been furnished prior to October 1 by a public utility
7operated by a town, city, or village and payment for which is owing and in arrears at
8the time of giving the notice. The department in charge of the utility shall furnish
9the treasurer with a list of the lots or parcels of real estate for which utility service
10charges are in arrears, and the notice shall be given by the treasurer, unless the
11governing body of the city, village, or town authorizes notice to be given directly by
12the department. The notice shall be in writing and shall state the amount of arrears,
13including any penalty assessed pursuant to the rules of the utility; that unless the
14amount is paid by November 1 a penalty of 10 percent of the amount of arrears will
15be added; and that unless the arrears, with any added penalty, are paid by November
1615, the arrears and penalty will be levied as a tax against the lot or parcel of real
17estate to which utility service was furnished and for which payment is delinquent.
18The notice may be served by delivery to either the owner or occupant personally, or
19by letter addressed to the owner or occupant at the post-office address of the lot or
20parcel of real estate.
SB517,4,8
1(b) On November 16, the officer or department issuing the notice shall certify
2and file with the clerk a list of all lots or parcels of real estate, giving the legal
3description, for which notice of arrears was given under par. (a) and for which arrears
4remain unpaid, stating the amount of arrears and penalty. Each delinquent amount,
5including the penalty, becomes a lien upon the lot or parcel of real estate to which the
6utility service was furnished and payment for which is delinquent, and the clerk
7shall insert the delinquent amount and penalty as a tax against the lot or parcel of
8real estate.
SB517,4,11 9(c) All proceedings in relation to the collection of general property taxes and to
10the return and sale of property for delinquent taxes apply to the tax under par. (b)
11if it is not paid within the time required by law for payment of taxes upon real estate.
SB517,4,19 12(d) Under this subsection, if an arrearage is for utility service furnished and
13metered by the utility directly to a manufactured home or mobile home unit in a
14licensed manufactured and mobile home community, the notice shall be given to the
15owner of the manufactured home or mobile home unit and the delinquent amount
16becomes a lien on the manufactured home or mobile home unit rather than a lien on
17the parcel of real estate on which the manufactured home or mobile home unit is
18located. A lien on a manufactured home or mobile home unit may be enforced using
19the procedures under s. 779.48 (2).
SB517,4,21 20(e) This subsection does not apply to arrearages collected using the procedure
21under s. 66.0627.
SB517,4,23 22(f) In this subsection, "metered" means the use of any method to ascertain the
23amount of service used or the use of a flat rate billing method.
SB517,3 24Section 3. 66.0809 (3m) of the statutes is created to read:
SB517,5,7
166.0809 (3m) (a) If sub. (5) applies and a notice of arrears under sub. (3) (a) is
2given or past-due charges are certified to the comptroller under s. 62.69 (2) (f), on the
3date the notice of arrears is given, or the past-due charges are certified under s. 62.69
4(2) (f), the officer or department shall certify and file with the clerk of courts a list of
5tenants of rental dwelling units responsible for arrears. The municipality has a lien
6upon the assets of each tenant listed under this paragraph in the amount of the
7arrears for which the tenant is responsible.
SB517,5,128 (b) If par. (a) applies and the owner of the rental dwelling unit has paid the
9municipality the amount provided in the notice of arrears given under sub. (3) (a),
10or certified to the comptroller under s. 62.69 (2) (f), or the amount placed as tax
11against the real estate under sub. (3) (b) or s. 62.69 (2) (f), the municipality shall
12transfer the lien under par. (a) to the owner.
SB517,5,1413 (c) Within 7 days after a lien established under this subsection is satisfied, the
14lienholder shall file with the clerk of courts a notice of lien satisfaction.
SB517,4 15Section 4. 66.0809 (5) (ag) of the statutes is created to read:
SB517,5,1816 66.0809 (5) (ag) The owner of a rental dwelling unit shall provide to each tenant
17to whom this subsection applies the information provided to the owner under s. 73.03
18(72).
SB517,5 19Section 5. 66.0809 (5) (b) (intro.) and 2. of the statutes are consolidated,
20renumbered 66.0809 (5) (b) and amended to read:
SB517,6,421 66.0809 (5) (b) If this subsection applies, a A municipal public utility may use
22sub. (3) or, if s. 62.69 applies, s. 62.69 (2) (f), to collect arrearages incurred after the
23owner of a rental dwelling unit has provided the utility with written notice under par.
24(a) only if the municipality complies with at least one of the following: 2. In order to
25comply with this subdivision, if a customer who is a tenant has charges for water or

1electric service provided by the utility that are past due,
the municipal public utility
2shall serve serves notice of the past-due charges on the owner of the rental dwelling
3unit within 14 days of the date on which the tenant's charges became past due. The
4municipal public utility shall serve notice in the manner provided in s. 801.14 (2).
SB517,6 5Section 6. 66.0809 (5) (b) 1. of the statutes is renumbered 66.0809 (5) (am) and
6amended to read:
SB517,6,207 66.0809 (5) (am) In order to comply with this subdivision, a A municipal public
8utility shall send bills for water or electric service to a customer who is a tenant in
9the tenant's own name. Each time that a municipal public utility notifies a customer
10who is a tenant that charges for water or electric service provided by the utility to
11the customer are past due for more than one billing cycle, the utility shall also serve
12a copy of the notice on the owner of the rental dwelling unit in the manner provided
13in s. 801.14 (2).
If a customer who is a tenant vacates his or her rental dwelling unit,
14and the owner of the rental dwelling unit provides the municipal public utility, no
15later than 21 days after the date on which the tenant vacates the rental dwelling
16unit, with a written notice that contains a forwarding address for the tenant and the
17date that the tenant vacated the rental dwelling unit, the utility shall continue to
18send past-due notices to the customer at his or her forwarding address until the
19past-due charges are paid or until notice has been provided under sub. (3) (a) or the
20past-due charges have been certified to the comptroller under s. 62.69 (2) (f)
.
SB517,7 21Section 7. 66.0809 (5) (bm) of the statutes is created to read:
SB517,6,2522 66.0809 (5) (bm) 1. No earlier than 14 days after receiving a notice under sub.
23(5) (b) of a tenant's past-due charges for electric service, the owner of a rental unit
24may request that the municipal public utility terminate electric service to the rental
25dwelling unit.
SB517,7,4
12. Upon receipt of a request under subd. 1., the municipal public utility shall
2serve notice on the tenant that unless all past-due charges are paid within 10 days,
3electric service to the rental dwelling unit will be terminated. The municipal public
4utility shall serve notice in the manner provided in s. 801.14 (2).
SB517,7,95 3. Except as provided under rules of the public service commission prohibiting
6disconnections during certain periods and subject to the procedural requirements
7under those rules, unless all past-due charges are paid, the municipal utility shall
8terminate electric service to the rental dwelling unit within 14 days after serving the
9notice under subd. 2.
SB517,8 10Section 8. 66.0809 (5) (c) of the statutes is amended to read:
SB517,7,1511 66.0809 (5) (c) A municipal public utility may demonstrate compliance with the
12notice requirements of par. (b) 1. or 2. (bm) by providing evidence of having sent the
13notice by U.S. mail or, if the person receiving the notice has consented to receive
14notice in an electronic format, by providing evidence of having sent the notice in an
15electronic format
.
SB517,9 16Section 9. 66.0809 (5) (d) of the statutes is amended to read:
SB517,7,2017 66.0809 (5) (d) If this subsection applies and a municipal public utility is
18permitted to collect arrearages under sub. (3) or s. 62.69 (2) (f), the municipal public
19utility shall provide all notices under sub. (3) or s. 62.69 (2) (f) to the tenant and to
20the owner of the property or a person designated by the owner.
SB517,10 21Section 10. 66.0809 (7) of the statutes is created to read:
SB517,7,2322 66.0809 (7) A municipal utility may require a prospective customer to submit
23an application for water or electric service.
SB517,11 24Section 11. 66.0809 (8) of the statutes is created to read:
SB517,8,4
166.0809 (8) (a) A municipal public utility shall disclose to the owner of a rental
2dwelling unit, upon the owner's request, whether a new or prospective tenant has
3outstanding past-due charges for utility service to that municipal public utility in
4that tenant's name at a different address.
SB517,8,75 (b) A municipal public utility shall refuse to establish electric utility service to
6a rental dwelling unit leased by a tenant unless any outstanding past-due charges
7for utility service in the tenant's name to that municipal public utility are paid.
SB517,12 8Section 12. 66.0809 (9) of the statutes is created to read:
SB517,8,109 66.0809 (9) A municipal utility is not required to offer a customer who is a
10tenant at a rental dwelling unit a deferred payment agreement.
SB517,13 11Section 13. 66.0809 (10) of the statutes is created to read:
SB517,8,1612 66.0809 (10) A municipal utility may adopt application, deposit, disconnection,
13or collection rules and practices that distinguish between customers based upon
14whether the customer owns or leases the property that is receiving utility service
15where the possibility exists for any unpaid bills of a tenant to become a lien on the
16property that is receiving utility service.
SB517,14 17Section 14. 71.93 (3) (a) 6. of the statutes, as created by 2013 Wisconsin Act
1820
, is amended to read:
SB517,8,1919 71.93 (3) (a) 6. Debt certified under s. 71.935 (2) (a) and then s. 71.935 (2) (b).
SB517,15 20Section 15. 71.935 (1) (a) of the statutes is renumbered 71.935 (1) (a) (intro.)
21and amended to read:
SB517,8,2222 71.935 (1) (a) (intro.) "Debt" means a the following:
SB517,9,4 231. A parking citation of at least $20 that is unpaid and for which there has been
24no court appearance by the date specified in the citation or, if no date is specified, that
25is unpaid for at least 28 days; an unpaid fine, fee, restitution or forfeiture of at least

1$20; and any other debt that is at least $20, including debt related to property taxes,
2if the debt has been reduced to a judgment or the municipality or county to which the
3debt is owed has provided the debtor reasonable notice and an opportunity to be
4heard with regard to the debt.
SB517,16 5Section 16. 71.935 (1) (a) 2. of the statutes is created to read:
SB517,9,66 71.935 (1) (a) 2. A lien under s. 66.0809 (3m).
SB517,17 7Section 17. 71.935 (1) (b) of the statutes is amended to read:
SB517,9,108 71.935 (1) (b) "Debtor" means a person who owes a debt to a municipality or
9county or to the owner of a rental dwelling unit for arrears, as described under s.
1066.0809 (3m)
.
SB517,18 11Section 18. 71.935 (2) of the statutes is renumbered 71.935 (2) (a).
SB517,19 12Section 19. 71.935 (2) (b) of the statutes is created to read:
SB517,9,1813 71.935 (2) (b) If a municipality or property owner has a lien against a tenant
14under s. 66.0809 (3m), the municipality shall, or property owner may, certify that
15debt to the department so that the department may set off the debt against any
16refund owed to the tenant. The municipality shall certify the debt to the department
17as provided in par. (a). The property owner shall certify the debt to the department
18in the manner prescribed by the department.
SB517,20 19Section 20. 71.935 (3) (a) of the statutes is amended to read:
SB517,9,2520 71.935 (3) (a) If the debt remains uncollected and, in the case of a parking
21citation, if the debtor has not contested the citation within 20 days after the notice
22under sub. (2), the department shall set off the debt against any refund that is owed
23to the debtor after the setoff under s. 71.93. Any legal action contesting a setoff shall
24be brought against the municipality or, county, or property owner that certified the
25debt under sub. (2).
SB517,21
1Section 21. 71.935 (3) (b) of the statutes is amended to read:
SB517,10,172 71.935 (3) (b) The department shall provide the information obtained under
3sub. (2) to the department of administration. Before reducing any disbursement as
4provided under this paragraph, the department of administration shall contact the
5department to verify whether a certified debt that is the basis of the reduction has
6been collected by other means and, in the case of a parking citation, whether the
7debtor has contested the citation within 20 days after the notice under sub. (2). If
8the certified debt remains uncollected and, in the case of a parking citation, the
9citation has not been contested within 20 days after the notice under sub. (2), the
10department of administration shall, after any reduction under s. 71.93, reduce the
11disbursement by the amount of the debtor's certified debt under sub. (2), notify the
12department of such reduction and disbursement, and remit the amount of the
13reduction to the department in the manner prescribed by the department. If more
14than one debt certified under sub. (2) exists for any debtor, the disbursement shall
15be reduced first by the earliest debt certified. Any legal action contesting a reduction
16under this paragraph shall be brought against the municipality or, county, or
17property owner
that certified the debt under sub. (2).
SB517,22 18Section 22. 71.935 (4) of the statutes is amended to read:
SB517,10,2219 71.935 (4) Within 30 days after the end of each calendar quarter, the
20department shall settle with each municipality and, county, and property owner for
21the amounts set off or reduced against certified debts for the municipality or, county,
22or property owner
during that calendar quarter.
SB517,23 23Section 23. 73.03 (72) of the statutes is created to read:
SB517,11,3
173.03 (72) To prepare and distribute to landlords information about the process
2for collecting arrears under ss. 66.0809 (3m) and 71.935 (2) (b) so that the landlords
3may provide the information to tenants.
SB517,24 4Section 24. 196.37 (5) of the statutes is created to read:
SB517,11,105 196.37 (5) It is not unreasonable or unjustly discriminatory for a municipal
6public utility to adopt application, deposit, disconnection, or collection rules and
7practices that distinguish between customers based upon whether the customer
8owns or leases the property that is receiving utility service where the possibility
9exists for any unpaid bills of a tenant to become a lien on the property that is
10receiving utility service.
SB517,25 11Section 25 . Initial applicability.
SB517,11,1412 (1) The treatment of sections 62.69 (2) (g) and 66.0809 (3) and (5) (b) (intro.),
131., and 2. of the statutes first applies to arrearages incurred on the effective date of
14this subsection.
SB517,11,1615 (2) The treatment of section 66.0809 (3m) of the statutes first applies to a notice
16of arrears given on the effective date of this subsection.
SB517,11,1817 (3) The treatment of section 66.0809 (8) (b) of the statutes first applies to a
18request for utility service made on the effective date of this subsection.
SB517,26 19Section 26. Effective date.
SB517,11,2120 (1) This act takes effect on the 1st day of the 6th month beginning after
21publication.
SB517,11,2222 (End)
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