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 Wisconsin Administrative Code (Last Updated: January 10, 2017)
 Agency DCF. Department of Children and Families
 Chapter ERules. Emergency Rules

  EmR1027. Relating to: Child care subsidy program integrity  

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    dcf201_EmR1027.pdf Children and Families – Revises Ch. DCF 201 – EmR1027

     

    Publication Date:        July 9, 2010   

    Effective Dates:          July 9, 2010 through December 5, 2010

     

    STATE OF WISCONSIN DEPARTMENT OF CHILDREN AND FAMILIES

    EMERGENCY RULE

     

    Child Care Subsidy Program Integrity

    DCF 201

     

    The Wisconsin Department of Children and Families orders the amendment of ss. DCF 201.04(5)(title), (b), (c)3., (d), (e), and (f), and 201.07(1)(e); the repeal and recreation of ss. DCF 201.04(5)(b)1. and 2. and (c)(intro.); and the creation of ss. DCF 201.02(7g) and (7r), 201.04(5)(a)(title), 201.04(5)(b)3., 4., 5., (bm), (c)4. and 5., (cg), (cr), (ed), (eh), (ep), (ep), and (g), and 201.07(1)(f), relating to child care subsidy program integrity.

     

    Finding of Emergency

     

    The Department of Children and Families finds that an emergency exists and that the attached rule is necessary for the immediate preservation of the public peace, health, safety, or welfare. A statement of facts constituting the emergency is:

     

    The Department of Children and Families has determined that significant disparities currently exist between DCF 201 and the intent of 2009 Wisconsin Acts 28 and 77 regarding Wisconsin Shares program integrity efforts.  The recent efforts of the legislature and the department to address child care fraud and program integrity are estimated to save $100 million over the course of the biennium.  Currently over $7.1 million of child care provider overpayments have yet to be collected due to the lack of authority to use basic collections practices such as tax intercept, wage levy, and property liens.  This rule will permit the department to more aggressively collect on these debts, strengthen the department’s ability to further tighten requirements for child care providers wishing to do business with the Wisconsin Shares program, and better enforce the rules of the program.  These changes will result in continued fiscal savings as well as ensure better quality child care for the children of Wisconsin.

     

    Analysis Prepared by the department of Children and Families

     

    Statutory authority:   Sections 49.155 (7m), 49.195 (3s), and 227.11 (2) (a), Stats.

    Statutes interpreted: Sections 49.155 and 49.195, Stats.

     

    Explanation of Agency Authority

    Section 49.155 (7m) (a), Stats., as created by 2009 Wisconsin Act 28 and renumbered by 2009 Wisconsin Act 77, provides that the department shall by rule establish policies and procedures permitting the department to do all of the following if a child care provider submits false, misleading, or irregular information to the department or if a child care provider fails to comply with the terms of the program and fails to provide to the satisfaction of the department an explanation for the noncompliance:

    ·          Recoup payments made to the child care provider.

    ·          Withhold payments to be made to the child care provider.

    ·          Impose a forfeiture on the child care provider.

     

    Section 49.195 (3m) and (3n), Stats., provide for collection of overpayments under s. 49.155, Stats., by warrant and execution and levy.  Subsection (3s) provides that the department shall specify by rule when requests for reviews, hearings and appeals under s. 49.195, Stats., may be made and the process to be used for the reviews, hearings and appeals. In promulgating the rules, the department shall provide for a hearing or review after a warrant under sub. (3m) has been issued and before the warrant has been executed, before property is levied under sub. (3m) or (3n) and after levied property is seized and before it is sold. The department shall specify by rule the time limit for a request for review or hearing. The department shall also specify by rule a minimum amount that must be due before collection proceedings under s. 49.195, Stats., may be commenced.

     

    Summary of the Rules  

    The rules establish policies and procedures specifying when a child care provider is responsible for an overpayment under the child care subsidy program, techniques for collecting overpayments, and penalties that may be imposed on a provider who fails to comply with the terms of the program.  Promulgation of these rules will also allow the department to implement s. 49.155 (7m) (b), Stats., as created by 2009 Wisconsin Act 77, regarding personal liability for overpayments and penalties for certain representatives of a child care business that is a corporation or limited liability company if the business is unable to pay.

     

    A provider is responsible for an overpayment if any of the following conditions are met:

    ·          The provider’s attendance records indicate more hours than a child actually attended.  If attended hours were misrepresented by the provider, the provider is responsible for an overpayment of the difference between the reimbursed hours and the actual hours of attendance regardless of the type of authorization.

    ·          Care was  provided at a location other than the location for which the authorization for care was issued, except for field trips. 

    ·          Care for children during time when the provider was in violation of limits on the maximum number of children in care or the required provider-to-child ratios for children of various ages. 

    ·          Care for children during time when the provider was in violation of the terms of the provider’s license, including the age of the children served by the center and hours, days, and months of operation of the center.

    ·          The provider benefited by receiving more child care reimbursement than otherwise would have been paid on the family’s behalf under child care assistance program requirements, the parent is not responsible for the overpayment, and the reimbursement did not benefit the parent by causing the parent to pay less for child care expenses than the family otherwise would have been required to pay under child care assistance program requirements.

     

    A provider and parent are jointly and severally liable for an overpayment if the provider and parent collude to violate a requirement of the Wisconsin Shares program.

     

    If a child care provider submits false, misleading, or irregular information to a child care administrative agency or the department or if a child care provider fails to comply with the terms of the child care subsidy program and the provider fails to provide to the satisfaction of the department an explanation for the noncompliance, the child care administrative agency or department may refuse to issue payments to the provider, in addition to the authority granted the department under s. 49.155 (7) (b) 4., Stats.; recoup payments made to the provider; and impose a forfeiture on the provider.  The existing rule also allows a child care administrative agency or the department to refuse to issue new child care authorizations to a provider for a period of time not to exceed 6 months and to revoke existing child care authorizations to the provider.

     

    A child care administrative agency or the department may impose a forfeiture of $100 to $10,000 on a child care provider if the provider violates a provision of the Wisconsin Shares program.  In determining the amount of the forfeiture, the child care administrative agency or department shall identify a specific date relating to a specific child and may consider the following factors:

    ·          Seriousness of the violation.

    ·          Extent of the violation.

    ·          History of prior violations.

    ·          Prior imposition of penalties.

    ·          Provider willingness to obey program rules.

     

    If the department or a certification agency has given notice to a provider that the provider is in violation of applicable licensing or certification rules and the provider has not corrected the violation, the department or child care administrative agency may refuse to issue new child care authorizations, revoke existing child care authorizations, or refuse to issue payments until the provider has corrected the violation and demonstrated sufficient controls to ensure that the violation or comparable violations are unlikely to occur again.

     

    If a provider has not repaid an overpayment, the child care administrative agency or department may recover the overpayment by making an offset from current or future funds under its control that are payable to the provider of no more than 50% of each payment if the provider is expected to continue to care for children whose care is subsidized under s. 49.155, Stats.  If a provider or former provider has not repaid an overpayment and the provider or former provider is not expected to continue to care for children whose care is subsidized under s. 49.155, Stats, the child care administrative agency or department may recover the overpayment by making an offset from 100% of funds under its control that are payable to the provider or former provider.

     

    If a debt for repayment of an overpayment is delinquent and no appeal rights are pending, Section 49.195 (3m), Stats., authorizes the department to issue a warrant that is considered in all respects a final judgment constituting a perfected lien upon the debtor’s right, title, and interest in all real and personal property located in the county in which the warrant is entered. The department shall provide the debtor with notice and an opportunity for a hearing under ch. 227, Stats, when a warrant has been issued, before property is seized, and before seized property is sold. The debtor may request a hearing under ch. 227, Stats., within 20 days from the date on the notice. The appeal shall be limited to questions of prior payment of the debt that the department is proceeding against and mistaken identity of the debtor. The department may not withdraw the warrant based on a hearing request when a warrant is issued or cease enforcement before property is seized based on a hearing request. If a hearing is requested after property is seized, the seized property may not be sold before the hearing decision is issued or the hearing request is withdrawn. When the amount set forth in the warrant and all costs due the department have been paid, the department shall issue a satisfaction of the warrant. Statutory exemption rights in ss. 815.18 (3) and 815.20, Stats., apply to this administrative warrant and execution procedure.

     

    If a debt for repayment of an overpayment is delinquent and no appeal rights are pending, Section 49.195 (3n), Stats., authorizes the department to levy on personal property belonging to the debtor, including wages due and deposits in a financial institution account. The department shall first send a notice of intent to levy at least 10 days prior to the levy, personally or by any type of mail service that requires a signature of acceptance. Notice prior to levy is not required for a subsequent levy on any debt of the same debtor within one year of the date of service of the original levy. Next, the department shall serve the levy upon the debtor and 3 rd party in possession of property to which the debtor has rights. The debtor may appeal the levy proceeding under ch. 227, Stats., within 20 days from the date on the service of levy. The appeal shall be limited to questions of prior payment and mistaken identity of the debtor. The levy is not stayed pending an appeal where property is secured through the levy.

     

    Within 20 days from the service of the levy upon a 3 rd party, the 3 rd party shall file an answer with the department stating whether the 3 rd party is in possession of or obligated with respect to property or rights to property of the debtor, including a description of the property or the rights to property and the nature and dollar amount of any such obligation. The 3 rd party shall, upon demand of the department, surrender the personal property or rights or discharge the obligation to the department, except that part of the personal property or rights which is, at the time of the demand, subject to any prior attachment or execution under any judicial process.

     

    If levied personal property that has been surrendered to the department is not a liquid asset in the form of cash, check, or an equivalent that can be applied to the debt without a sale of the asset, the department shall provide the debtor with notice and an opportunity for a hearing under ch. 227, Stats., before surrendered property is sold. The debtor may request a hearing under ch. 227, Stats., within 20 days from the date on the notice. The appeal shall be limited to questions of prior payment of the debt that the department is proceeding against and mistaken identity of the debtor. If a hearing is requested, surrendered property may not be sold before the hearing decision is issued or the hearing request is withdrawn.

     

    The debtor is entitled to an exemption from levy of the greater of a subsistence allowance of 75% of the debtor’s disposable earnings then due and owing or an amount equal to 30 times the federal minimum hourly wage for each full week of the of the debtor’s pay period, an amount equal to 60 times the federal minimum hourly wage for a two-week pay period, or an amount equal to 130 times the federal minimum hourly wage for a monthly pay period. The debtor is entitled to an exemption of the first $1,000 of an account in a depository institution.

     

    Any appeal based on a notice received in a warrant and execution or levy proceeding or a notice of intent to certify a debt for set-off against a state tax refund shall be limited to questions of prior payment of the debt that the department is proceeding against and mistaken identity of the debtor. The minimum amount that must be due before warrant and execution and levy procedures may be commenced is $300. The department may waive recovery of an overpayment if the department has made reasonable efforts to recover the overpayment from the debtor and determines it is no longer cost effective to continue overpayment recovery efforts.

     

    Summary of Factual Data and Analytical Methodologies

    Section 201.04 (5) (b) 1. of this rule refers to s. DCF 201.04 (2g) (a).  Section DCF 201.04 (2) (d) was renumbered s. DCF 201.04 (2g) (a) in EmR10-056/CR10-056, relating to authorized hours of subsidized child care.

     

    Summary of Related Federal Requirements

    States are required to implement strategies to prevent, measure, identify, reduce, and collect improper payments for funding received under the Child Care and Development Fund.

     

    Comparison to Adjacent States

    Minnesota.   Overpayments that benefit a provider and not a family are recouped from future payments to the provider if the provider continues to care for subsidized children.

     

    Illinois . Overpayments are recovered from providers who do not comply with program policies by tax intercept, reductions in future payments, or other means determined to be effective.

     

    Iowa.   Iowa uses factors to be considered in determining penalties against providers who violate the terms of the child care program.

      

    Michigan


.  Michigan has proposed rules on overpayment recovery and revocation if a provider’s attendance records are not accurate.

     

    Agency Contact Person  

    Jim Bates, Section Chief, Fraud Detection and Investigation Unit, Division of Early Care and Education, (608) 266-6946, jim.bates@wisconsin.gov .

     

     

    TEXT OF RULE:

     

    SECTION 1.  DCF 201.02 (7g) and (7r) are created to read:

     

    DCF 201.02 (7g)  “ Complies with the payment schedule” as used in s. 49.195 (3m) (h), Stats., means the debtor submits each payment due on an overpayment so that it is received by the department by the due date every month over the life of the debt.

    (7r)  “Debtor” means a liable person who received an overpayment of reimbursements for care of children whose care is subsidized under s. 49.155, Stats., or a person who is liable under s. 49.155 (7m) (b), Stats.

     

    SECTION 2.  DCF 201.04 (5) (title) is amended to read:

     

    DCF 201. 04 (5) OVERPAYMENT RECOVERY AND SANCTIONS PENALTIES .

     

    SECTION 3.  DCF 201. 04 (5) (a) (title) is created to read:

     

    DCF 201. 04 (5) (a) (title) Parent overpayments . 

     

    SECTION 4.  DCF 201. 04 (5) (b)  is amended to read:

     

    DCF 201. 04 (5) (b)  Provider overpayments .   A child care administrative agency or the department shall take all reasonable steps necessary to recoup or recover from a provider any overpayments made for child care services for which the provider is responsible or overpayments caused by administrative error that benefited the provider. A provider shall be responsible for an overpayment if both of the following criteria are satisfied any of the following conditions are met :

     

    SECTION 5.  DCF 201. 04 (5) (b) 1. and 2. are repealed and recreated to read:

     

    DCF 201. 04 (5) (b) 1.  A provider received reimbursement based on attendance records that indicate more hours than a child actually attended.  If attended hours were misrepresented by the provider, the provider is responsible for an overpayment of the difference between the reimbursed hours and the actual hours of attendance regardless of the type of authorization under s. DCF 201.04 (2g) (a).

    2.  A provider received reimbursement for care provided at a location other than the location for which the authorization for care was issued, except for field trips. 

     

    SECTION 6.  DCF 201. 04 (5) (b) 3., 4., and 5. and (bm) are created to read:

     

    DCF 201. 04 (5) (b) 3.  A provider received reimbursement made for care during time when the provider was in violation of the applicable provision regarding limits on the maximum number of children in care or the required provider-to-child ratios for children of various ages in ss. DCF 202.08 (6), 250.05 (4), 251.05 (4), or 252.42 (3). 

    4.  A provider received reimbursement for care during time when the provider was in violation of the terms of the provider’s license under ss. DCF 250.04 (1), 251.04 (1), or 252.05 (3), including age of the children served by the center and hours, days, and months of operation of the center.

    5.  A provider benefited by receiving more child care reimbursement than otherwise would have been paid on the family’s behalf under child care assistance program requirements, the parent is not responsible for the overpayment under par. (a), and the reimbursement did not benefit the parent by causing the parent to pay less for child care expenses than the family otherwise would have been required to pay under child care assistance program requirements.

    (bm)  Joint liability .  A provider and parent shall be jointly and severally liable for an overpayment if the provider and parent collude to violate a requirement under this chapter or s. 49.155, Stats.

     

    SECTION 7.  DCF 201. 04 (5) (c) (intro.) is repealed and recreated to read:

     

    DCF 201. 04 (5) (c) (intro.) Penalties for subsidy violations .  If a child care provider submits false, misleading, or irregular information to a child care administrative agency or the department or if a child care provider fails to comply with the terms of the program in s. 49.155, Stats., or this chapter and the provider fails to provide to the satisfaction of the department an explanation for the noncompliance, the child care administrative agency or department may take one or more of the following steps:

     

    SECTION 8.  DCF 201. 04 (5) (c) 3. is amended to read:

     

    DCF 201. 04 (5) (c) 3. Refuse to issue payments to the provider until the provider has corrected the violation , in addition to the authority granted to the department under s. 49.155 (7) (b) 4., Stats .

     

    SECTION 9.  DCF 201. 04 (5) (c) 4. and 5. are created to read:

     

    DCF 201. 04 (5) (c) 4. Recoup payments made to the provider.

    5. Impose a forfeiture on the provider under par. (cg). 

     

    SECTION 10.  DCF 201. 04 (5) (cg) and (cr) are created to read:

     

    DCF 201. 04 (5) (cg)  Forfeitures .  A child care administrative agency or the department may impose a forfeiture of $100 to $10,000 on a child care provider if the provider violates a provision in this chapter or s. 49.155, Stats.  In determining the amount of the forfeiture, the child care administrative agency or department shall identify a specific date relating to a specific child and may consider the following factors:

    1.  Seriousness of the violation.

    2.  Extent of the violation.

    3.  History of prior violations.

    4.  Prior imposition of penalties.

    5.  Provider willingness to obey program rules.

    (cr)  Licensing or certification violations.   If the department or a certification agency has given notice to a provider that the provider is in violation of applicable licensing or certification rules under chapters DCF 202, 250, 251, or 252 and the provider has not corrected the violation, the department or child care administrative agency may refuse to issue new child care authorizations, revoke existing child care authorizations, or refuse to issue payments until the provider has corrected the violation and demonstrated sufficient controls to ensure that the violation or comparable violations are unlikely to occur again.

     

    SECTION 11.  DCF 201. 04 (5) (d) and (e) are amended to read:

     

    DCF 201. 04 (5) (d)  Notice to parent .  When If the department or a child care administrative agency refuses to issue new authorizations, revokes existing authorizations, or refuses to issue payments to a provider under par. (c) or (cr) , the child care administrative agency or the department shall provide written notice to the parent as soon as possible before the effective date of the sanction penalty .

    (e)  Offset from funds payable to continuing provider .  If the a provider has not repaid an overpayment, the child care administrative agency or department may recover the overpayment by making an offset from current or future funds under its control that are payable to the provider of no more than 50 % percent of each payment if the provider is expected to continue to care for children whose care is subsidized under s. 49.155, Stats.

     

    SECTION 12.  DCF 201. 04 (5) (ed), (eh), (ep), and (et) are created to read:

     

    DCF 201. 04 (5) (ed)  Offset from funds payable to provider who is not continuing .  If a provider or former provider has not repaid an overpayment and the provider or former provider is not expected to continue to care for children whose care is subsidized under s. 49.155, Stats, the child care administrative agency or department may recover the overpayment by making an offset from 100 percent of funds under its control that are payable to the provider or former provider.

    (eh)  Warrant and execution under section 49.195 (3m), Stats.   1. ‘Creation of lien.’

    a. If the department does not receive a debtor’s payment on a debt for repayment of an overpayment by the due date 3 times over the life of a debt, the debt shall be considered delinquent.  If a debt is delinquent and no review or appeal rights under s. DCF 201.07 are pending and the time for requesting a review has expired, the department may issue a warrant directed to the clerk of circuit court of any county.

    b. The clerk of circuit court shall enter in the judgment and lien docket the name of the debtor named in the warrant, the amount for which the warrant is issued, and the date on which the clerk entered the information.

    c. The department shall pay the fees required under s. 814.61 (5), Stats., for entering the warrant and shall collect the fees from the debtor named in the warrant when satisfaction or release is presented for entry.

    d. A warrant issued under subd. 2. b. shall be considered in all respects a final judgment constituting a perfected lien upon the debtor’s right, title, and interest in all real and personal property located in the county in which the warrant is entered.

    e. The department shall provide the debtor with notice and an opportunity for a hearing under ch. 227, Stats., when a warrant has been issued. The debtor may request a hearing under ch. 227, Stats., within 20 days from the date on the notice. The appeal shall be limited to questions of prior payment of the debt that the department is proceeding against and mistaken identity of the debtor.  The department may not withdraw a warrant based on a request for hearing.

    2. ‘Execution of the warrant .’  a. After the warrant is issued and no review or appeal rights under subd. 1. e. are pending and the time for requesting a review has expired, the department may file an execution with the clerk of circuit court for filing with the sheriff of the county, commanding the sheriff to execute the warrant and sell sufficient real and personal property of the debtor to pay the amount stated in the warrant in the same manner as upon an execution against property issued upon the judgment of a court of record, and to return the warrant to the department and pay to it the money collected by virtue of the warrant within 90 days after receipt of the warrant. The execution may not command the sheriff to levy upon or sell any property that is exempt from execution under ss. 815.18 (3) and 815.20 , Stats.

    b. The department shall provide the debtor with notice and an opportunity for a hearing under ch. 227, Stats., before property is seized. The debtor may request a hearing under ch. 227, Stats., within 20 days from the date on the notice. The appeal shall be limited to questions of prior payment of the debt that the department is proceeding against and mistaken identity of the debtor. The department may not cease enforcement or seizure based on a request for hearing.

    c. The department shall provide the debtor with notice and an opportunity for a hearing under ch. 227, Stats., before seized property is sold. The debtor may request a hearing under ch. 227, Stats., within 20 days from the date on the notice. The appeal shall be limited to questions of prior payment of the debt that the department is proceeding against and mistaken identity of the debtor. If a hearing is requested, the department shall notify the sheriff that seized property may not be sold before the hearing decision is issued or the hearing request is withdrawn.

    3. ‘Satisfaction of the warrant .’  When the amount set forth in the warrant and all costs due the department have been paid to it, the department shall issue a satisfaction of the warrant and file it with the clerk of circuit court. The clerk of circuit court shall immediately enter a satisfaction of the judgment on the judgment and lien docket. The department shall send a copy of the satisfaction to the person named in the warrant.

    (ep) Levy under section 49.195 (3n), Stats .  1. ‘Definition.’ In this paragraph, “personal property” means all tangible and intangible property and rights to such property that is not real estate, including compensation paid or payable for personal services, whether denominated as wages, salary, commission, bonus or otherwise; periodic payments received pursuant to a pension or retirement program; rents; proceeds of insurance; contract payments; stock and bonds; and accounts in financial institutions.

    2.  ‘Notice prior to levy .’  a.  If the department does not receive a debtor’s payment on a debt for repayment of an overpayment by the due date 3 times over the life of a debt, the debt shall be considered delinquent.  If a debt is delinquent and no review or appeal rights under s. DCF 201.07 are pending and the time for requesting a review has expired, the department shall give notice to the debtor that the department may pursue legal action for collection of the debt.

    b. The department shall make the demand for payment and give notice to the debtor at least 10 days prior to the levy, personally or by any type of mail service that requires a signature of acceptance, at the address of the debtor as it appears on the records of the department. The demand for payment and notice shall include a statement of the amount of the debt, including interest and penalties, and the name of the debtor who is liable for the debt.

    c. The debtor’s refusal or failure to accept or receive the notice does not prevent the department from making the levy.

    d. Notice prior to levy is not required for a subsequent levy on any debt of the same debtor within one year of the date of service of the original levy.

    3. ‘Service of levy and review when property levied.’   a. The department may collect the debt and the expenses of the levy by levy upon any personal property belonging to the debtor.

    b. The department shall serve the levy upon the debtor and any 3rd party in possession of or obligated with respect to property or rights to property that is subject to levy by personal service or by any type of mail service that requires a signature of acceptance as provided in s. 49.195 (3n) (m), Stats. The debtor or 3rd party’s failure to accept or receive service of the levy does not invalidate the levy.

    c. Any debtor who is subject to a levy proceeding made by the department has the right to appeal the levy proceeding under ch. 227, Stats., within 20 days from the date on the service of levy. The appeal shall be limited to questions of prior payment of the debt that the department is proceeding against and mistaken identity of the debtor. The levy is not stayed pending an appeal where property is secured through the levy.

    4. ‘Third−party response .’  a. Within 20 days from the service of the levy upon a 3rd party, the 3rd party shall file an answer with the department stating whether the 3rd party is in possession of or obligated with respect to property or rights to property of the debtor, including a description of the property or the rights to property and the nature and dollar amount of any such obligation.

    b. Any person in possession of or obligated with respect to personal property or rights to personal property that is subject to levy and upon which a levy has been made shall, upon demand of the department, surrender the personal property or rights or discharge the obligation to the department, except that part of the personal property or rights which is, at the time of the demand, subject to any prior attachment or execution under any judicial process.

    5. ‘Appeal rights before surrendered property is sold .’  If levied personal property that has been surrendered to the department is not a liquid asset in the form of cash, check, or an equivalent that can be applied to the debt without a sale of the asset, the department shall provide the debtor with notice and an opportunity for a hearing under ch. 227, Stats., before surrendered property is sold. The debtor may request a hearing under ch. 227, Stats., within 20 days from the date on the notice. The appeal shall be limited to questions of prior payment of the debt that the department is proceeding against and mistaken identity of the debtor. If a hearing is requested, surrendered property may not be sold before the hearing decision is issued or the hearing request is withdrawn.

    6.  ‘Exemption rights.’  a. The debtor is entitled to an exemption from levy of the greater of a subsistence allowance of 75% of the debtor’s disposable earnings then due and owing, an amount equal to 30 times the federal minimum hourly wage for each full week of the debtor’s pay period, an amount equal to 60 times the federal minimum hourly wage for a two−week pay period, or an amount equal to 130 times the federal minimum hourly wage for a monthly pay period.

    b. The first $1,000 of an account in a depository institution is exempt from any levy to recover an overpayment.

    7. ‘Proceeds.’ a. The department shall apply all money obtained under this paragraph first against the expenses of the proceedings and then against the liability for which the levy was made and any other liability owed to the department by the debtor.

    b. Whenever the value of any personal property that has been levied upon under this paragraph is not sufficient to satisfy the claim of the department, the department may levy upon any additional personal property of the debtor until the debt and expenses of the levy are fully paid.

    c. The department may refund or credit any amount left after the applications under subd. 7.a., upon submission of a claim for that amount and satisfactory proof of the claim, to the person entitled to that amount.

    (et) Threshold for warrant and execution and levy .  The minimum amount that must be due before collection proceedings under par. (eh) or (ep) may be commenced is $300.

     

    SECTION 13.  DCF 201. 04 (5) (f) is amended to read:

     

    DCF 201. 04 (5) (f)  Parent not liable.   If the department refuses to issue payment based on a provider’s violation of a requirement in this chapter, the provider may not hold the parent liable for payment other than the copayment and any amount that the parent agreed to above the department’s maximum reimbursement rate if the parent relied on an approved authorization for care for his or her child to receive care from the provider.

     

    SECTION 14.  DCF 201. 04 (5) (g) is created to read:

     

    DCF 201. 04 (5) (g)  Waiver .  The department may waive recovery of an overpayment under this subsection if the department has made reasonable efforts to recover the overpayment and determines it is no longer cost effective to continue overpayment recovery efforts.

     

    SECTION 15.  DCF 201. 07 (1) (e) is amended to read:

     

    DCF 201.07 (1) (e) Collection of an overpayment, including the determination of the amount of the overpayment, the determination of the amount of the overpayment still owed, warrant and execution under (eh), levy under par. (ep), or a decision under s. 49.85, Stats., to recover the overpayment by means of certification to the Wisconsin department of revenue. The provider may make only one request for appeal of the basis for the overpayment claim.  Any subsequent appeals shall be limited to questions of prior payment of the debt that the department or agency is proceeding against or mistaken identity of the debtor.

     

    SECTION 16.  DCF 201. 07 (1) (f) is created to read:

     

    DCF 201. 07 (1) (f)  Issuance of a forfeiture.

     

    SECTION 17.  EFFECTIVE DATE. This rule shall take effect upon publication as provided in s. 227.24 (1) (c), Stats.