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Senate Engrossed House Bill
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State of Arizona
House of Representatives
Forty-fifth Legislature
First Regular Session
2001
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HOUSE BILL 2557
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AN ACT
AMENDING SECTION 12-284, ARIZONA REVISED STATUTES, AS AMENDED BY LAWS 2001, CHAPTER 14, SECTION 1; AMENDING SECTIONS 12-284.03 AND 25-323, ARIZONA REVISED STATUTES; AMENDING SECTION 25-412, ARIZONA REVISED STATUTES, AS AMENDED BY LAWS 2001, CHAPTER 14, SECTION 15; AMENDING SECTION 25-500, ARIZONA REVISED STATUTES; AMENDING SECTION 25-503.01, ARIZONA REVISED STATUTES, AS AMENDED BY LAWS 2001, CHAPTER 81, SECTION 4; AMENDING SECTIONS 25-504 AND 25-505.01, ARIZONA REVISED STATUTES; AMENDING SECTION 25-509, ARIZONA REVISED STATUTES, AS AMENDED BY LAWS 2001, CHAPTER 14, SECTION 17; AMENDING SECTIONS 25-517 AND 25-518, ARIZONA REVISED STATUTES; AMENDING TITLE 25, CHAPTER 5, ARTICLE 1, ARIZONA REVISED STATUTES, BY ADDING SECTIONS 25-527 AND 25-527.01; CHANGING THE DESIGNATION OF TITLE 25, CHAPTER 5, ARTICLE 5, ARIZONA REVISED STATUTES, TO "SUPPORT ARREST WARRANTS"; AMENDING SECTIONS 25-681, 25-682, 25-683 AND 25-684, ARIZONA REVISED STATUTES; CHANGING THE DESIGNATION OF TITLE 32, CHAPTER 37, ARIZONA REVISED STATUTES, TO "SUPPORT OBLIGATIONS"; AMENDING SECTIONS 32-3701, 41-1954 AND 42-1122, ARIZONA REVISED STATUTES; RELATING TO SPOUSAL MAINTENANCE.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 12-284, Arizona Revised Statutes, as amended by Laws 2001, chapter 14, section 1, is amended effective from and after August 31, 2001, to read:
12-284. Fees
A. Except as otherwise provided by law, the clerk of the superior court shall receive fees classified as follows:
Class Description Fee
A Initial case filing fee
Tax case$115.00
Filing complaint or petition 115.00
Filing intervenor 115.00
Additional plaintiffs 115.00
Filing foreign judgment 115.00
Ownership of real property becomes an issue
Plaintiff 115.00
Appellant 115.00
Change of venue to this county 115.00
Petition for change of name 115.00
Filing a process server application 115.00
B Subsequent case filing fee
Filing answer or initial appearance$ 61.00
Additional defendants 61.00
Notice of appeal to appellate courts 61.00
Cross-appeal by appellee 61.00
Ownership of real property becomes an issue
Defendant 61.00
Jurisdiction exceeded appellee
(within 20 days of filing) 61.00
Response to show cause which does one or more of
the following:
1. Request affirmative or counterrelief
2. Attacks process of proceedings
3. Takes other affirmative action 61.00
C Initial case filing fee
Filing petition for annulment$ 91.00
Filing for dissolution/legal separation petition 91.00
Petition in formal testacy or appointment
proceeding 91.00
Application for informal probate or informal
appointment 91.00
Petition for supervised administration petition
to appoint guardian 91.00
Petition to appoint conservator or make other
protective order 91.00
Opposing petition in testacy or appointment
proceedings or appointment of guardian or
conservator 91.00
Single estate application or petition under
title 14, chapter 3, section 14-3938 91.00
Domestic relations case for which a fee is not
specifically prescribed 91.00
D Subsequent case filing fee
Filing answer to annulment$ 46.00
Filing for dissolution/legal separation answer 46.00
Any person opposing contested petition if no
prior payment made 46.00
Post-adjudication petitions in domestic
relations cases 46.00
Post-judgment activities in probate cases 46.00
E Minimum clerk fee
Filing power of attorney$ 18.00
Change of venue to another county transmittal
fee 18.00
Change of venue to another county on section
12-404, transmittal fee 18.00
Filing transcript and docketing judgment from
any courts 18.00
Issuance of writs of: attachment, execution,
possession, restitution, prohibition and
enforcement of order of judgment-garnishment 18.00
Certified copy or abstract of marriage
application or license 18.00
Filing oath and bond of notary public 18.00
Certificate of correctness of copy of record 18.00
Justice of peace certificate 18.00
Notary public certificate 18.00
Each certificate of clerk to any matter in
clerk's record not specifically provided 18.00
Filing any paper or performing any act for
which a fee is not specifically prescribed 18.00
Subpoena - (civil) 18.00
Research in locating a document (per year or
source researched) 18.00
Exemplification (per certification) 18.00
Authentication (per certification) 18.00
Seal a court file 18.00
Reopen a sealed court file 18.00
Retrieve bank records 18.00
Reel of film alpha index per year (plus per page
fee below) 18.00
Payment history report 18.00
Certification under one document certification 18.00
Civil traffic appeal 18.00
F Per page fee
Making copies (on appeal and on request)
per page$ .50
Making extra copies per page .50
Making photographic or photostatic copies
per page .50
Comparison fee of papers furnished by applicant
per page .50
Alpha index per page .50
G Special fees
Filing adoption case$ 30.00
Contested adoption 15.00
Small claim tax case 15.00
Filing petition against harassment 5.00
Domestic violence, order of protection pursuant
to section 13-3602 5.00
Marriage license and return hereof 50.00
Postage and handling 5.00
Notary services 5.00
Stop payment on check 10.00
B. The clerk of the superior court shall receive the fees prescribed in subsection A of this section for the following services:
1. Making copies of papers and records required to be made by the clerk on appeal, and copies of papers and records in the clerk's office made on request in other cases, for each legal size page of original.
2. Making extra copies of the papers and records mentioned in paragraph 1 of this subsection, required or requested for each page of copy of such papers and records.
3. In a clerk's office, in which a photographic or photostatic method of recording is used or is available for use in cooperation with other public offices, preparing copies enumerated in paragraphs 1 and 2 of this subsection for each page of copy or fraction of a page of copy. Portions of several pages of records may be combined in one page of copy. The clerk may prepare an abstract of marriage in lieu of a reproduction of the recorded marriage license. The fee shall apply to matters whether recorded in such office by longhand, typing, electronic, photographic or photostatic methods. The fees for copies are exclusive of the fees for certification or authentication.
4. Issuing a certificate as to official capacity of a notary public or justice of the peace and affixing a seal thereto.
5. Each subpoena issued in a civil proceeding or filing any paper or performing any act for which a fee is not specifically prescribed by law, but the clerk shall not charge for the clerk's services in administering the oath in connection with any affidavit, petition, letters or other pleading or document which, after administration of the oath therefor, is promptly filed by the clerk and becomes a part of a case or matter of record in the office of the clerk.
C. In addition to the fees required by subsection A of this section, the clerk shall charge and collect a surcharge of fifteen dollars for each filing of a post-adjudication petition in a domestic relations case for which a fee presently is charged under class D in subsection A of this section. The surcharge shall be used exclusively to fund domestic relations education and mediation programs established pursuant to section 25-413. Each month the clerk shall transmit the monies the clerk collects pursuant to this subsection to the county treasurer for deposit in the domestic relations education and mediation fund established by section 25-413.
D. IN ADDITION TO THE FEES REQUIRED BY SUBSECTIONS A AND C OF THIS SECTION, THE CLERK SHALL CHARGE AND COLLECT A SURCHARGE OF TWENTY-FIVE DOLLARS FOR EACH FILING OF A PETITION FOR ANNULMENT OR A PETITION FOR DIVORCE OR LEGAL SEPARATION FOR WHICH A FEE PRESENTLY IS CHARGED UNDER CLASS C IN SUBSECTION A OF THIS SECTION OR FILING OF A POST-ADJUDICATION PETITION IN A DOMESTIC RELATIONS CASE FOR WHICH A FEE PRESENTLY IS CHARGED UNDER CLASS D IN SUBSECTION A OF THIS SECTION. THE SURCHARGE SHALL BE USED EXCLUSIVELY TO FUND THE SPOUSAL MAINTENANCE ENFORCEMENT PROGRAM PURSUANT TO SECTION 25-527. EACH MONTH THE CLERK SHALL TRANSMIT THE MONIES THE CLERK COLLECTS PURSUANT TO THIS SUBSECTION TO THE STATE TREASURER FOR DEPOSIT IN THE SPOUSAL MAINTENANCE ENFORCEMENT FUND ESTABLISHED BY SECTION 25-527.01.
D. E. Excluding the monies that are collected pursuant to
subsection SUBSECTIONS C AND D of this section, each month the
clerk shall transmit seventy-five per cent of the monies collected for subsequent
case filing fees for postadjudication petitions in domestic relations cases
under class D in subsection A of this section to the county treasurer for deposit
in the expedited child support and parenting time fund established pursuant
to section 25-412. The remaining twenty-five per cent of the monies collected
pursuant to this subsection shall be distributed pursuant to section 12-284.03.
E. F. At the commencement of each action for annulment, for
dissolution of marriage or for legal separation, the petitioner shall pay to the
clerk of the court the initial case filing fee for the action provided in
subsection A of this section. At the time of filing a response, the respondent
shall pay to the clerk of the court the subsequent case filing fee for the action
provided in subsection A of this section. In each county where the superior court
has established a conciliation court, the petitioner and respondent shall each
pay to the clerk a sixty-five dollar fee. The monies from the additional fee
shall be used to carry out the purposes of the conciliation court pursuant to
title 25, chapter 3, article 7.
F. G. In garnishment matters:
1. A fee shall not be charged for filing an affidavit seeking only the release of exempt wages.
2. A fee shall not be charged for filing a garnishee's answer, for filing a judgment against the garnishee or for the issuance or return of process incident to such a judgment.
3. For any contest relating to or any controversion of a garnishment matter, unless the contesting party has paid an appearance fee in that cause, the required appearance fee shall be paid, except that the garnishee shall not pay a clerk's fee.
G. H. A person who is cited to appear and defend an order to show
cause shall not be charged an appearance fee. The person may stipulate to or
consent to the entry of an order without the payment of an appearance fee. An
appearance fee shall be paid if the person is present in person or by an attorney
and does one or more of the following:
1. Requests affirmative relief or counterrelief.
2. Attacks the sufficiency of process or the proceedings.
3. Takes other affirmative action.
H. I. A defendant shall not be charged an answer fee in an order
of protection action if the defendant requests a hearing pursuant to section
13-3602, subsection I or in an injunction against harassment action if the
defendant requests a hearing pursuant to section 12-1809, subsection G
H.
I. J. A person who files a registrar's order pursuant to section
32-1166.06 shall not be charged a fee.
J. K. Except for monies that are collected pursuant to
subsections C, D, and E AND F of this section, the clerk of the
superior court shall transmit monthly to the county treasurer all monies
collected pursuant to this section for distribution or deposit pursuant to
section 12-284.03.
Sec. 2. Section 12-284.03, Arizona Revised Statutes, is amended effective from and after August 31, 2001, to read:
12-284.03. Distribution of fees
A. Excluding the monies that are kept by the court pursuant to subsection B of
this section, the county treasurer shall transmit, distribute or deposit all monies
received from the clerk of the superior court pursuant to section 12-284, subsection J
K as follows:
1. 1.31 per cent to the state treasurer for deposit in the drug and gang enforcement account established by section 41-2402 for the purposes of section 41-2402, subsection H.
2. 8.87 per cent to the state treasurer for deposit in the domestic violence shelter fund established by section 36-3002.
3. 1.93 per cent to the state treasurer for deposit in the child abuse prevention fund established by section 8-550.01.
4. In the county law library fund established pursuant to section 12-305, either:
(a) 7.62 per cent if the county treasurer is serving in a county with a population of more than five hundred thousand persons according to the most recent United States decennial census.
(b) 15.30 per cent if the county treasurer is serving in a county with a population of five hundred thousand persons or less according to the most recent United States decennial census.
5. 0.35 per cent to the state treasurer for deposit in the alternative dispute resolution fund established by section 12-135.
6. To the elected officials' retirement plan fund established by section 38-802, either of the following percentages, which shall be distributed to the fund pursuant to section 38-810:
(a) 23.79 per cent if the county treasurer is serving in a county with a population of more than five hundred thousand persons according to the most recent United States decennial census.
(b) 15.30 per cent if the county treasurer is serving in a county with a population of five hundred thousand persons or less according to the most recent United States decennial census.
7. 17.07 per cent to the state treasurer for deposit in the judicial collection enhancement fund established by section 12-113.
8. 0.26 per cent to the state treasurer for deposit in the confidential intermediary and private fiduciary fund established by section 8-135.
9. In the county general fund, the following percentages:
(a) 31.29 per cent if the county treasurer is serving in a county with a population of more than five hundred thousand persons according to the most recent United States decennial census.
(b) 32.10 per cent if the county treasurer is serving in a county with a population of five hundred thousand persons or less according to the most recent United States decennial census.
B. 7.51 per cent of the monies transmitted, distributed or deposited pursuant to subsection A of this section shall be kept and used by the court collecting the fees in the same manner as the seven dollars of the time payment fee prescribed by section 12-116, subsection B.
Sec. 3. Section 25-323, Arizona Revised Statutes, is amended effective from and after August 31, 2003, to read:
25-323. Assignments
A. Pursuant to the requirements of section 25-504, in any proceeding in which the
court orders a person to pay support as defined in section 25-500 the court shall, and
in any proceeding in which the court orders a person to pay OR spousal
maintenance the court may, SHALL assign to the person or agency entitled to
receive the support or spousal maintenance that portion of that person's earnings,
income, entitlements or other monies without regard to source as necessary to pay the
amount ordered by the court.
B. The court may also issue an ex parte order of assignment pursuant to section 25-504 for support as defined in section 25-500, spousal maintenance or arrearages of or interest on a judgment for spousal maintenance.
C. The court may terminate or adjust orders of assignment pursuant to section 25-504.
Sec. 4. Section 25-412, Arizona Revised Statutes, as amended by Laws 2001, chapter 14, section 15, is amended effective from and after August 31, 2001, to read:
25-412. Expedited child support and parenting time fund
A. Each county treasurer shall establish an expedited child support and parenting
time fund consisting of monies received pursuant to section 12-284, subsection D
E.
B. The presiding judge of the superior court shall use fund monies to establish, maintain and enhance programs designed to expedite the processing of petitions filed pursuant to section 25-326 and to establish, enforce and modify court orders involving children.
C. The county treasurer may invest monies in the fund and shall deposit interest earned in the fund.
D. Monies received from this fund shall be used to supplement and not supplant monies allocated by the county.
Sec. 5. Section 25-500, Arizona Revised Statutes, is amended effective from and after August 31, 2003, to read:
25-500. Definitions
In this chapter, unless the context otherwise requires:
1. "Arrearage" means the total unpaid support owed, including child support, past support, spousal maintenance and interest.
2. "Business day" means a day when state offices are open for regular business.
3. "Child support guidelines" means the child support guidelines that are adopted by the state supreme court.
4. "Child support subpoena" means a subpoena issued pursuant to section 25-520.
5. "Department" means the department of economic security.
6. "Income" means any form of payment owed to an individual, regardless of source, including wages, salaries, commissions, bonuses, workers' compensation, disability payments, payments pursuant to a pension or retirement program and interest.
7. "Obligee" means a person or agency entitled to receive support.
8. "Obligor" means a person obligated to pay support.
9. "Support" means the provision of maintenance or subsistence and includes medical
insurance coverage and uncovered medical costs for the child, arrearages, interest on
arrearages, past support, interest on past support and reimbursement for expended public
assistance. In a title IV-D case, Support also includes spousal maintenance that
WHETHER OR NOT IT is included in the same order that directs child support.
10. "Support payment clearinghouse" means the clearinghouse established pursuant to section 46-441.
11. "Title IV-D" means title IV-D of the social security act.
Sec. 6. Section 25-503.01, Arizona Revised Statutes, as amended by Laws 2001, chapter 81, section 4, is amended effective from and after August 31, 2003, to read:
25-503.01. Self-employed person; monies held as security for payment of support
A. On a showing of good cause, the court may order that a self-employed parent
PERSON who is required to make child support payments forward an
amount equal to not more than six months of child support to the department to hold
as security. The department shall release these monies to compensate an obligee for
missed current child support payments.
B. This section does not apply unless the self-employed parent PERSON
is in arrears for three months or more.
C. This section does not limit other remedies available to an obligee, the department or its agents.
D. If a self-employed parent PERSON who is required to forward
monies to the department pursuant to this section demonstrates full and timely support
payments for twenty-four consecutive months, the department shall release to that
self-employed parent PERSON any monies that remain.
Sec. 7. Section 25-504, Arizona Revised Statutes, is amended effective from and after August 31, 2003, to read:
25-504. Order of assignment; ex parte order of assignment; responsibilities; violation; termination
A. In a proceeding in which the court orders a person to pay support the court
shall, and in a proceeding in which the court orders a person to pay OR spousal
maintenance the court may, SHALL assign to the person or agency entitled to
receive the support or spousal maintenance that portion of the person's income necessary
to pay the amount ordered by the court. In a proceeding in which spousal maintenance is
ordered to be paid the court shall order the assignment on either party's request.
B. A person obligated by an order to pay support or spousal maintenance, the person to whom support or spousal maintenance is ordered to be paid or the department or its agent in a title IV-D case may file a verified request with the clerk of the superior court requesting the clerk to issue an ex parte order of assignment for support or spousal maintenance. The ex parte order of assignment may include a payment for current support and any other support, current spousal maintenance, spousal maintenance arrearages and interest on spousal maintenance arrearages. A request filed by the department or its agent need not be verified. The request shall state:
1. The name of the person or agency entitled to receive support or spousal maintenance.
2. The monthly amount of any current support and the monthly amount of any spousal maintenance ordered by the court.
3. The specific amount requested for any support arrearages, spousal maintenance arrearages or interest.
4. The name and address of the payor to whom it is requested the order of assignment be directed and the name and social security number of the person obligated to pay support or spousal maintenance.
C. After receipt of a request for an ex parte order of assignment the clerk of the superior court, without a hearing or notice to the person obligated to pay support or spousal maintenance, shall issue an order of assignment of that portion of the person's income as is sufficient to pay the amount requested to the person or agency entitled to receive the support or spousal maintenance. On issuance of an ex parte order of assignment, the clerk shall issue a notice directed to the obligor in substantially the following form, which shall also be in Spanish:
Notice
To: The obligor (the person ordered to pay support or spousal maintenance)
This is to notify you that part of your income or other monies is being taken away by the enclosed order of assignment that was issued on a request for an order of assignment that also is enclosed. The order of assignment has been issued for currently accruing child support or spousal maintenance, or both, based on the requesting party's claim that you are obligated to pay this. In addition, the requesting party may be claiming a right to collect other support, as defined in section 25-500, Arizona Revised Statutes, arrearages on spousal maintenance or interest on a judgment for unpaid spousal maintenance.
If you believe the enclosed order of assignment is improper or unlawful, that your property is exempt by law, or that your employer or other payor is withholding more than is permitted by law, you may request a hearing before the superior court. You must file a request to terminate or adjust the order of assignment on forms provided by the clerk of the court within seven days after your receipt of the order for assignment, request for an order of assignment and this notice. If you request a hearing, it will be held no more than ten days after you file your request with the court.
Here are some other important things you should know:
The order of assignment is effective immediately on service of the order on your employer or another payor. The first employer or payor served shall not withhold or deduct amounts specified in the ex parte order of assignment for fourteen calendar days from the date of service to allow you, the obligor, an opportunity to contest the order of assignment as provided in section 25-504, Arizona Revised Statutes. A future employer or payor may begin deductions sooner than the fourteen day period after the order of assignment is received.
If you request a hearing, the court, after considering the financial resources of both parties and the reasonableness of the positions each party has taken, may order a party to pay a reasonable amount to the other for the attorney fees and costs of filing or defending the request.
Under state law (section 33-1131, Arizona Revised Statutes) no more than one-half of your disposable earnings for any pay period may be taken to satisfy an order issued for support or spousal maintenance. The amount of disposable earnings exempt from the order of assignment must be paid to you when due. Disposable income means the remaining portion of your wages, salary or compensation for personal services, including bonuses and commissions, or otherwise, and includes payments pursuant to a pension or retirement program or a deferred compensation plan, after deducting from such earnings the amounts required by law to be withheld.
An employer or other payor who receives the order of assignment may deduct from amounts due to you one dollar for each pay period, but not more than four dollars per month, for costs. The employer or payor also must deduct a monthly amount for the support payment handling fee required by state law (section 25-510, Arizona Revised Statutes).
The employer or other payor on whom the order of assignment is served will continue to withhold the amount set in the order and will forward the payment to the support payment clearinghouse until you file with the clerk one of the following:
1. A verified request to adjust the order of assignment, and the court adjusts the order of assignment because there has been a change of circumstances since the time of the issuance of the order or there is other good cause to do so.
2. A verified request for a hearing to terminate the order of assignment and, after a hearing, the court terminates the order of assignment if all obligations have been satisfied or will be satisfied within ninety days.
3. A notarized stipulation stating that the obligation to pay support or spousal maintenance has ended and that all arrearages either have been satisfied or have been waived, and the clerk terminates the order of assignment.
An employer may not refuse to hire, may not discharge or may not otherwise discipline you as a result of the order of assignment. If you are wrongfully refused employment, discharged or otherwise disciplined you may recover damages suffered, plus reinstatement if appropriate, plus reasonable attorney fees and costs incurred against the employer.
Unless a court has expressly ordered otherwise, you must notify the clerk of the court or the support payment clearinghouse in writing of the address of your residence and of your employment and, within ten days, of a change in either one. Your failure to do so may subject you to sanctions for contempt of court, including reasonable attorney fees and costs pursuant to state law (section 25-504, subsection R, Arizona Revised Statutes). Official notices will be delivered to you at the most recent addresses you have provided to the clerk or support payment clearinghouse.
D. Any order of assignment shall be issued only for support, spousal maintenance, spousal maintenance arrearages, interest on spousal maintenance arrearages and handling fees. The order of assignment shall state the total amount that the payor shall withhold. The order of assignment also shall specify the monthly amount of current support and any other payment ordered for support, the monthly amount of any current spousal maintenance, the monthly amount of any spousal maintenance arrearages and any monthly interest payment. If the obligor's disposable earnings from the primary employer or other payor do not meet the support obligation, the court shall issue an order of assignment to a secondary employer or other payor of the obligor in order to meet the full support obligation.
E. An order of assignment shall be served on any employer or other payor by first class mail, electronic transmission or personal delivery or pursuant to the Arizona rules of civil procedure. The order of assignment is effective immediately on receipt by any employer or other payor and any future employer or future payor. Any employer or other payor of monies shall begin withholding no later than fourteen days after receipt of an order of assignment. The employer or other payor, if feasible, may begin withholding sooner than the fourteen day period if a payment to the obligor is due sooner.
F. Two copies of an ex parte order of assignment and of the request for an order of assignment, together with a copy of the notice required by this section, shall be served on any employer or other payor in the same manner as other orders of assignment under this section. Within five days after receipt, the employer or payor shall serve by personal delivery or by registered mail one copy of the ex parte order of assignment and of the request and the notice on the employee or other payee. The ex parte order of assignment is effective on any employer or other payor, and as an assignment by operation of law is effective on any future employers or other future payors, immediately on receipt. The first employer or other payor served shall not withhold or deduct amounts specified in the ex parte order of assignment for fourteen calendar days to allow the obligor an opportunity to contest the order of assignment as provided in this section. Any future employers or future payors shall begin withholding not later than fourteen days after receipt of an ex parte order of assignment but, if feasible, may begin withholding sooner than fourteen days if a payment to the obligor is due sooner.
G. After service of an ex parte order of assignment on the employer or payor that initially receives the order of assignment, an obligor may request a hearing to contest the ex parte order of assignment. The request shall be made in writing, and the obligor shall state under oath the specific reason for the request. The request shall be filed with the court together with a notice of hearing form. The court shall hold a hearing within ten days after the request and notice of hearing form is filed. Immediately on the scheduling of the hearing, the obligor shall serve a copy of the request for and notice of hearing on the person entitled to receive support, and in a title IV-D case to the department. If the obligor files a request for hearing within seven days after receipt of the order of assignment, the court may order the support payment clearinghouse not to disburse any monies received pursuant to the order of assignment until further order of the court. The obligor may contest the withholding for any of the following reasons:
1. There is an error in the identity of the obligor.
2. There is an error in the amount of support or spousal maintenance.
3. Invalidity of the order for support or spousal maintenance.
4. Current support or spousal maintenance is no longer owed, if the order of assignment includes a payment for current support or spousal maintenance.
5. Arrearages are not owed if the order of assignment includes a payment for arrearages.
H. Any employer or other payor who has received any order of assignment shall withhold the amount specified in the order of assignment, together with the handling fee as provided in section 25-510, from the income of the person obligated to pay support or spousal maintenance and shall transmit the withheld monies to the support payment clearinghouse within two business days after the obligor is paid or after the payment to the obligor is due. The handling fee shall be deducted and transmitted monthly. For the cost of compliance the employer or payor may also withhold and retain an additional one dollar per payment but not more than four dollars per month for each obligor. An employer or payor may combine in a single payment withheld monies for more than one obligor, shall separately identify the portion of the remittance that is attributable to each obligor and shall include each obligor's social security number. An employer or payor shall notify the clerk or support payment clearinghouse in writing when the obligor is no longer employed or the right to receive income or other monies has been terminated. The employer or payor shall also notify the clerk or support payment clearinghouse in writing of the obligor's social security number and last known address and the name and address of the obligor's new employer, if known, within ten days. In a non-title IV-D case, within ten days after receiving this information the support payment clearinghouse shall notify the clerk of the superior court in the county where the support or maintenance order was issued. If within ninety days of the last payment, the employer or other payor reemploys the obligor or becomes obligated to pay the obligor, the employer or payor is again bound by the order of assignment and is required to perform as required by this section. In a title IV-D case the order of assignment may be reinstated pursuant to section 25-505.01. An employer or payor who fails without good cause to comply with the terms of an order of assignment is liable for amounts not paid to the clerk or support payment clearinghouse pursuant to the order of assignment and reasonable attorney fees, costs and other expenses incurred in procuring compliance and may be subject to contempt.
I. If a person is obligated to pay child support OR SPOUSAL MAINTENANCE for more than one family and the amount available for withholding is not sufficient to meet the total combined current child support obligation, any monies withheld from the obligor's income shall be allocated to each family by the employer or payor as follows:
1. The amount of current child support ordered in each case shall be added together to obtain the total current child support obligation.
2. The amount of current child support ordered in each case shall be divided by the total current child support obligation to obtain the percentage of the total current child support obligation to be allocated to each case.
3. The amount withheld from the obligor shall be multiplied by the percentage for each case to obtain the amount to be allocated to each case.
J. The person or agency entitled to receive support or spousal maintenance shall notify the clerk of the superior court or support payment clearinghouse in writing of any change of residential address and of any other information required pursuant to section 46-443, within ten days of any change. If the clerk or support payment clearinghouse is unable to deliver payments under an order of assignment for a period of three months due to the failure of an obligee to comply with the notice requirement of this subsection, the clerk or support payment clearinghouse shall not make further payment under the order of assignment and shall return payments to the obligor. Under these circumstances the court, clerk or department or its agent shall order the release of the employer or payor from the order of assignment on request of the employer, the payor, the department or its agent or on the clerk's own initiative. Any order of assignment from which an employer or payor has been released may be reinstated by following the procedures for obtaining an ex parte order of assignment pursuant to this section or, in a title IV-D case, an administrative income withholding order pursuant to section 25-505.01.
K. Unless a court has ordered otherwise, the person ordered to pay support or spousal maintenance shall notify the clerk of the superior court or the support payment clearinghouse in writing of the obligor's residential address and the name and address of any employer, and within ten days of any change. Failure to do so may subject the person to sanctions for contempt of court, including reasonable attorney fees and costs.
L. Any order of assignment may be adjusted if there has been a change of circumstances since the date the order of assignment was issued or for good cause. The department or its agent or a person obligated to pay or entitled to receive support or spousal maintenance shall file with the clerk of the superior court a request to adjust the order of assignment and a proposed order of assignment. The request shall specify the adjustment sought and the reason for the request. A copy of the request shall be served pursuant to the Arizona rules of civil procedure, or by the department or its agent in a title IV-D case by first class mail, on all other parties and on the state if the department is providing title IV-D support services or has a claim for arrearages. The party receiving the request and proposed order may request a hearing within twenty days or within thirty days if service is made outside this state. On proof of service and if a hearing has not been requested within the time allowed, the clerk shall issue the order of assignment as appropriate. Within two business days after the date the order of assignment is issued, the clerk shall transmit a copy of the order of assignment to the employer or payor, the department or its agent and all parties. Unless ordered otherwise by the court, in a title IV-D case any order of assignment may be adjusted pursuant to section 25-505.01.
M. The department or its agent or a person obligated to pay or entitled to receive support or spousal maintenance may file a request to terminate any order of assignment if the obligation to pay support or spousal maintenance has ended or will end within ninety days after the filing of the request and if all arrearages either have been paid or will be paid within the period or have been waived. The request shall state the reason why termination is requested and shall contain the name and address of the employer or payor of the person obligated to pay support. A copy of the request shall be served pursuant to the Arizona rules of civil procedure, or by the department or its agent in a title IV-D case by first class mail, on all other parties and on the state if the department is providing title IV-D support services or has a claim for arrearages. A party receiving this notice may request a hearing within twenty days or within thirty days if service is made outside this state. On proof of service and if a hearing has not been requested within the time allowed, the clerk shall issue an order terminating the order of assignment as appropriate. Within two business days after the date the order is issued, the clerk shall transmit a copy of the order terminating the order of assignment to the employer or payor and to the department or its agent. If a hearing is requested, the court shall set the hearing within twenty days after receiving the request and shall issue an appropriate order. A person who is ordered to pay support may request the court to terminate an order of assignment at any time if an employer is making deductions on multiple assignments for an obligation for the same minor children. Notwithstanding any law to the contrary, the clerk shall not charge a fee to a person who files a request to terminate an order of assignment if an employer is making deductions on multiple assignments for an obligation for the same minor children.
N. If a request to adjust or terminate an order of assignment is filed, the court in its discretion may order that the clerk of the superior court or support payment clearinghouse not disburse any monies in dispute until further order of the court.
O. The clerk of the superior court shall issue an order terminating the order of assignment if the parties, including the department or its agent in a title IV-D case, file a notarized stipulation with the clerk that all obligations of support or spousal maintenance have been satisfied and that the obligor is no longer obligated to pay support or spousal maintenance. The stipulation shall state that the current obligation of support or spousal maintenance no longer exists and that all arrearages either have been satisfied or waived. The stipulation shall also contain the name and address of the employer or payor of the person obligated to pay support or spousal maintenance. Within five business days after the date the stipulation is filed, the clerk shall transmit a copy of the order terminating the order of assignment to the employer or payor and to the department or its agent. Notwithstanding any law to the contrary, the clerk shall not charge a fee to a party who files a stipulation pursuant to this subsection.
P. An assignment ordered pursuant to this section has priority over all other executions, attachments or garnishments. An obligation for current child support shall be fully met before any payments pursuant to an order of assignment may be applied to any other support obligation. An assignment ordered under this section does not apply to amounts made exempt under section 33-1131 or any other applicable exemption law.
Q. Any employer or other payor shall not refuse to hire a person and shall not discharge or otherwise discipline an obligor because of service of an order of assignment authorized by this section. An employer or payor who refuses to hire a person or who discharges or otherwise disciplines an employee or obligor because of service of an order of assignment is subject to contempt and sanctions as may be ordered by the court. A person who is wrongfully refused employment, wrongfully discharged or otherwise disciplined is entitled to recover damages sustained by the prohibited conduct, reinstatement, if appropriate, and attorney fees and costs incurred.
R. In any proceeding under this section the court, after considering the financial resources of the parties and the reasonableness of the positions each party has taken, may order a party to pay a reasonable amount to another party for the costs and expenses, including attorney fees, of maintaining or defending the proceeding.
Sec. 8. Section 25-505.01, Arizona Revised Statutes, is amended effective from and after August 31, 2003, to read:
25-505.01. Administrative income withholding order; notice; definition
A. In a title IV-D case or in a spousal maintenance enforcement case subject to enforcement pursuant to section 25-527, if a person is obligated to pay support, the department or its agent, without prior notice to the obligor, shall issue an income withholding order using the format prescribed by the United States secretary of health and human services. The order shall include the obligor's social security number. The withholding order shall include payment for current child support or spousal maintenance and may include an installment payment for arrearages pursuant to subsection B of this section or any other support. A withholding order under this section does not apply to amounts exempt under section 33-1131, subsection C or any other applicable exemption law. The withholding order shall direct the holder of the monies to withhold and pay to the person or agency entitled to receive the support the amount ordered by the department. The withholding order shall be accompanied by a written notice of withholding as prescribed in this section.
B. In addition to current support an income withholding order may include an installment for arrearages or any other support if:
1. At the time of issuance, the arrearage is an amount equal to at least two months but not more than six months of the obligor's current support obligation, the income withholding order shall include an additional amount equal to twenty-five per cent of the current support obligation.
2. At the time of issuance, the arrearage is an amount equal to more than six months of the obligor's current support obligation, the income withholding order shall include an additional amount equal to thirty-three per cent of the current support obligation.
3. At the time of issuance, the arrearage is an amount equal to one year or more of the obligors's support obligation, an income withholding order may include an additional amount that exceeds thirty-three per cent of the support obligation.
C. The department shall serve the order and notice on an employer or payor by first class mail or by electronic means. Service by mail as authorized in this section is complete as to the employer or payor when the mailing is received. Service by electronic means is complete on transmission to the employer or payor. The income withholding order shall direct the employer or payor to deliver or mail by first class mail a copy of the income withholding notice and order to the obligor within ten days after service on the employer or payor.
D. The income withholding order is an assignment and is binding fourteen days after receipt on an existing and future employer or payor of the person ordered to pay support or spousal maintenance on whom a copy of the income withholding order and notice of withholding is served. The employer or payor shall withhold the amount specified in the order from the income of the person obligated to pay support and shall transmit that amount to the support payment clearinghouse within two business days after the date the employee is paid. The employer or payor shall advise the support payment clearinghouse of the date the monies were withheld, may combine withheld amounts for several employees in a single payment and shall separately identify the portion of the payment that is attributable to each employee. The employer or other payor may also withhold and retain for application to the employer's or payor's cost of compliance an additional one dollar per pay period or four dollars per month.
E. If the obligor's disposable income from the primary employer or payor does not meet the support obligation, the department shall issue an income withholding order to a secondary employer of the obligor in order to meet the full support obligation.
F. Any obligor, employer or other payor may challenge the income withholding order issued by the department or its agent by filing a written request for administrative review with the department or its agent within ten days after receipt of the notice of income withholding order from the employer or payor. The administrative review shall be conducted pursuant to section 25-522. On receipt of a request for administrative review the department or its agent shall delay implementation of the income withholding order.
G. A change in income withholding pursuant to subsection B of this section is not a sufficient basis for a modification of the current support order.
H. Notwithstanding section 25-504, in a title IV-D case or in a spousal maintenance enforcement case subject to enforcement pursuant to section 25-527, if all obligations of support have been satisfied and the person obligated to pay support is no longer obligated and if the parties, including the department or its agent in a title IV-D case or in a spousal maintenance enforcement case subject to enforcement pursuant to section 25-527, submit a stipulation that the current obligation of support no longer exists and that all arrearages either have been satisfied or waived, the department or its agent shall issue an order terminating the income withholding order. The order shall state that the current obligation of support no longer exists and that all arrearages either have been satisfied or waived. The stipulation shall also contain the name and address of the employer or payor of the person obligated to pay support. Within five business days after the date the stipulation is submitted, the department or its agent shall send by first class mail a copy of the order terminating the income withholding order to the employer or payor, the parties and the clerk of the court.
I. Notwithstanding section 25-504, in a title IV-D case or in a spousal maintenance enforcement case subject to enforcement pursuant to section 25-527, the department or its agent on its own initiative, or the parties to a child support proceeding on request to the department, may terminate an income withholding order issued pursuant to this section or section 25-504, if the obligation to pay support has ended or will end within ninety days after the date the request is submitted and if all arrearages either have been paid or will be paid within the period or have been waived. The request shall include a statement of why the termination is requested, supporting documentation and the name and address of the employer and person obligated to pay support. The requesting party shall notify each party by first class mail of the request to terminate the order. The employer or payor shall continue to withhold and transmit support or spousal maintenance until otherwise ordered. On receipt of a request to terminate an income withholding order the department or its agent may suspend disbursements until a determination is issued. A party that receives notice of a request to terminate an income withholding order may object to the request and provide the department or its agent with the basis for the objection and supporting documents within ten days after receipt of the notice. Within forty-five days after the request the department or its agent shall issue a determination to all parties based on the information available. On a determination to terminate an income withholding order, the department or its agent within two business days shall send by first class mail a copy of the order terminating or adjusting the order to the employer or payor and to the support payment clearinghouse.
J. The employer or payor shall notify the support payment clearinghouse in writing when the person ordered to pay support or spousal maintenance is no longer employed by the employer or the right to receive income has been terminated. The employer shall notify the support payment clearinghouse in writing of the former employee's last known address and the name and address of the new employer, if known. If the employer or payor is again obligated to pay income to a person ordered to pay support within ninety days after termination of this right, the employer or payor is again bound by the income withholding order and is required to perform pursuant to this section.
K. The obligation for current child support shall be fully met before any payments under an order of assignment may be applied to payments of arrearages. If a person is obligated to pay child support for more than one family and the amount available for withholding is not sufficient to meet the total combined child support obligation, any monies withheld from the obligor's income shall be allocated to each family by the employer or payor as follows:
1. The amount of current child support ordered in each case shall be added to obtain the total child support obligation.
2. The ordered amount in each case shall be divided by the total child support obligation to obtain a percentage of the total amount due.
3. The amount available from the obligor's income shall be multiplied by the percentage under paragraph 2 of this subsection to obtain the amount to be allocated to each family.
L. An income withholding order shall include a statement that an employer shall not refuse to hire a person or shall not discharge or otherwise discipline an employee as a result of an income withholding order authorized by this section, and an employer who refuses to hire a person or who discharges or otherwise disciplines an employee as a result of the income withholding order is subject to contempt and fines as established by the court. Any person wrongfully refused employment or an employee wrongfully discharged or otherwise disciplined is entitled to recovery of damages suffered, reinstatement if appropriate, plus attorney fees and costs incurred. Any employer or other payor who fails without good cause to comply with the terms of the income withholding order may be liable for amounts not paid to the support payment clearinghouse pursuant to the income withholding order, reasonable attorney fees and costs incurred and may be subject to contempt. The department may initiate an action in superior court to enforce this subsection.
M. On issuance of an income withholding order the department or its agent shall issue a notice of withholding directed to the person ordered to pay support. The notice shall advise the obligor that:
1. An income withholding order has been issued against the obligor's income for payment of currently accruing child support or spousal maintenance, or both.
2. The income withholding order may include an amount for child support arrearages, or any other support.
3. The obligor may file a written request for administrative review with the department pursuant to section 25-522 within ten days after receipt of this notice if the obligor believes that:
(a) The income withholding order is improper or unlawful.
(b) The obligor's property is exempt by law.
(c) The employer or other payor is withholding more than permitted by law.
4. An income withholding order made pursuant to this section becomes binding on the employer or payor or any future employers or future payors fourteen days after receipt of a copy of the order and notice of withholding.
5. The employer or payor shall withhold the amount specified in the order from the income of the person obligated to pay support.
6. Not more than one-half of the obligor's disposable income for any period may be taken to satisfy an income withholding order issued for the support of any person.
7. The amount of disposable income exempt from the income withholding order must be paid to the obligor on the regular payday for the pay period in which income is earned.
8. The employer or other payor shall continue to withhold the amount set forth in the order each pay period and shall forward the amount to the child support payment clearinghouse until either:
(a) The obligor files a request for administrative review with the department or its agent and after review the department or its agent modifies or terminates the income withholding order.
(b) The obligor files a petition with the court and, after a hearing, the court modifies or terminates the income withholding order.
9. An employer may not refuse to hire, may not discharge or may not otherwise discipline the obligor as a result of this income withholding order. If the obligor is wrongfully refused employment, discharged or otherwise disciplined, the obligor may recover damages suffered, reinstatement of employment if appropriate and reasonable attorney fees and costs incurred against the employer.
10. Unless ordered otherwise, the obligor has a duty to notify the support payment clearinghouse in writing of the address of the obligor's residence and employment and, within ten days, of a change in either one. The department or its agent shall use these addresses to notify the obligor of all subsequent actions to enforce support. Failure of the obligor to advise the department of changes in residential or employment address may subject the obligor to sanctions for contempt of court, including reasonable attorney fees and costs.
N. An income withholding order issued pursuant to this section has the same force and effect as an order of the superior court, has priority over all other attachments, executions, garnishments or assignments and may be enforced against the obligor and employer in superior court.
O. For purposes of this section, "arrearages" means past due support, including interest.
Sec. 9. Section 25-509, Arizona Revised Statutes, as amended by Laws 2001, chapter 14, section 17, is amended effective from and after August 31, 2003, to read:
25-509. Representation by attorney general or county attorney; modification of order by attorney general or county attorney
A. The attorney general or county attorney on behalf of this state may initiate an action or intervene in an action to establish, modify or enforce a duty of child support, including medical support, regardless of the welfare or nonwelfare status of the person to whom the duty of support is owed. The attorney general or county attorney may establish, modify or enforce such a duty of support by all means available, including all civil and criminal remedies provided by law. An attorney-client relationship does not exist between the attorney and an applicant or recipient of child support enforcement services.
B. This state may initiate an action or may intervene in an action involving child support. Intervention by the state in an existing action is by unconditional right and is accomplished by the state filing an entry of appearance.
C. The attorney general or county attorney shall not seek or defend any ancillary matters, such as custody or parenting time, raised in these proceedings. The attorney general or county attorney may petition for modification of child support or medical support for children.
D. The attorney general or county attorney on behalf of this state may initiate an action or intervene in an action to enforce a spousal maintenance order, regardless of the welfare or nonwelfare status of the person to whom the duty of support is owed. The attorney general or county attorney may enforce a spousal maintenance order by all means available, including all civil and criminal remedies provided by law. An attorney-client relationship does not exist between the attorney and an applicant or recipient of spousal maintenance enforcement services.
E. This state may initiate an action or may intervene in an action involving spousal maintenance enforcement. Intervention by the state in an existing action is by unconditional right and is accomplished by the state filing an entry of appearance.
Sec. 10. Section 25-517, Arizona Revised Statutes, is amended effective from and after August 31, 2003, to read:
25-517. Title IV-D agency; license suspension; notice
A. The department or its agent shall notify an obligor who is at least two months
in arrears in making child support payments, periodic payments on a support arrearage
or periodic payments pursuant to a court order of support or who has failed to comply
with a child support subpoena or a child support arrest warrant that the obligor
may be referred to court for a hearing to suspend or deny the obligor's driver license,
professional or occupational license or recreational license. The department or its
agent shall notify the obligor by first class mail at the obligor's current address, or
after a reasonable attempt to ascertain the obligor's location, at the obligor's last
known address. The notice shall state the following:
1. The obligor has wilfully failed to pay child support, wilfully continues to
do so and is at least two months in arrears in making child support payments or has
failed without reasonable cause to comply with a child support subpoena or a
child support arrest warrant.
2. The obligor may request in writing an administrative review conducted pursuant to section 25-522 to contest the matter within fifteen days from the date of mailing of the notice.
3. If the obligor requests an administrative review, the department or its agent shall stay the action to refer the obligor to court for the suspension or denial of the obligor's professional, occupational, recreational or driver license.
4. If the obligor fails to respond to the notice, the department or its agent shall refer the obligor to court for license suspension or denial pursuant to section 25-518.
5. The address and telephone number of the department.
6. The obligor may request a copy of the child support order.
B. If an obligor fails to respond to the notice in subsection A of this section within fifteen days after the date of mailing, the department or its agent shall send the obligor a second notice. The second notice shall include the information under subsection A of this section and shall state the following:
1. If the obligor fails to contact the department or its agent within fifteen days after the date of mailing of the second notice, the obligor's license shall be suspended.
2. This is the final notice the obligor will receive.
C. If an obligor requests an administrative review pursuant to this section, the
issues at the review shall be limited to whether the obligor is required to pay child
support and is in arrears or whether the obligor has failed without reasonable cause to
comply with a child support subpoena or a child support arrest warrant. The
department or its agent shall not refer the obligor to court unless the department or its
agent determines that the obligor is at least two months in arrears or has failed without
reasonable cause to comply with a child support subpoena or a child support
arrest warrant. The department or its agent shall make this decision in writing and
shall provide a copy to the obligor.
D. If the department or its agent determines that the obligor is either at least
two months in arrears, has failed without reasonable cause to comply with a child
support subpoena or a child support arrest warrant or has failed to respond to the
second notice, the department shall refer the obligor to court for license suspension
pursuant to section 25-518.
Sec. 11. Section 25-518, Arizona Revised Statutes, is amended effective from and after August 31, 2003, to read:
25-518. Support arrearage; license suspension; hearing; definition
A. A court shall send a certificate of noncompliance to the board or agency
ordering the suspension or denial of a license if the court finds from the evidence
presented at a hearing to enforce a child support order that the obligor:
1. Wilfully failed to pay child support and after notice pursuant to section
25-517, subsection A continues to wilfully fail to pay child support and is at least
two months in arrears.
2. Failed without reasonable cause to comply with a child support subpoena.
3. Failed without reasonable cause to comply with a child support arrest
warrant.
B. On petition or motion the court shall hold a review hearing to determine if the
obligor has come into compliance with the support order, a child support subpoena or
a child support arrest warrant. If the obligor establishes at the review hearing that
the obligor is in compliance with the support order, a court ordered plan for payment of
arrearages, a child support subpoena or a child support arrest warrant, the court
shall send a certificate of compliance to the board or agency. Except for licenses issued
under title 17, the obligor may then apply for license reinstatement and shall pay all
applicable fees.
C. In a title IV-D case OR IN A SPOUSAL MAINTENANCE ENFORCEMENT CASE SUBJECT TO
ENFORCEMENT PURSUANT TO SECTION 25-527, the department or its agent may file with the
clerk of the superior court an affidavit indicating that the obligor is in compliance
with the support order or the child support obligation. Within five business days
after the affidavit is filed, the clerk shall send a notice of compliance to the obligor
by first class mail. The clerk shall send a copy of the notice of compliance to the
department and the licensing board or agency.
D. An obligee may petition the court for an order to suspend the driver,
professional, occupational or recreational license of an obligor who is at least two
months in arrears on a child support obligation if the obligee complies with the
notice requirements of this section. The court may act on this petition in the same
manner it acts on other petitions filed under this section.
E. The obligee shall provide notice to the obligor as provided in subsection F of this section. The notice shall state the following:
1. The obligee is entitled to receive child support payments and the monthly
amount.
2. The obligor is in arrears in making child support payments and the amount of
the arrearages.
3. The obligee intends to petition the court for a license suspension hearing.
4. The driver, professional, occupational or recreational license of the obligor
may be suspended or denied if the court finds that the obligor is at least two months in
arrears and has wilfully failed to pay child support.
F. The obligee shall attach a copy of the order of support to the notice. The obligee shall serve the notice by first class mail.
G. Except for licenses issued under title 17, the board or agency shall suspend or deny the license of the licensee within thirty days after receiving the notice of noncompliance from the court. The board or agency shall not lift the suspension until the board or agency receives a certificate of compliance from the court. Notwithstanding section 41-1064, subsection C and section 41-1092.11, subsection B, the board or agency is not required to conduct a hearing. The board or agency shall notify the department in writing or by any other means prescribed by the department of all suspensions within ten days after the suspension. The information shall include the name, address, date of birth and social security number of the licensee and the license category.
H. A certificate of noncompliance without further action invalidates a license to take wildlife in this state and prohibits the obligor from applying for a license issued by an automated drawing system under title 17. The court shall send a copy of the certificate of noncompliance to the department of economic security, and the department of economic security shall notify the Arizona game and fish department of all obligors against whom a notice of noncompliance has been issued and who have applied for a license issued by an automated drawing system.
I. For the purposes of this section, "license" means any license, certificate, registration or other authorization that:
1. Is issued by a board or agency.
2. Is subject before expiration to suspension, revocation, forfeiture or termination by the issuing board or agency.
3. A person must obtain to:
(a) Practice or engage in a particular business, occupation or profession.
(b) Operate a motor vehicle.
(c) Engage in activities requiring a license pursuant to title 17.
Sec. 12. Title 25, chapter 5, article 1, Arizona Revised Statutes, is amended effective from and after August 31, 2001, by adding sections 25-527 and 25-527.01, to read:
25-527. Spousal maintenance; application of article
A. BEGINNING FROM AND AFTER AUGUST 31, 2003, SUBJECT TO THE AVAILABILITY OF FUNDS PROVIDED PURSUANT TO SECTION 25-527.01, THE DEPARTMENT AND ITS AGENTS SHALL, AND ANY PERSON MAY, USE THE PROCEDURES PRESCRIBED IN THIS ARTICLE TO ENFORCE SPOUSAL MAINTENANCE ORDERS, WHETHER OR NOT THOSE ORDERS ARE ASSOCIATED WITH THE ENFORCEMENT OF A CHILD SUPPORT OBLIGATION.
B. THE DEPARTMENT SHALL PRIORITIZE ITS ENFORCEMENT EFFORTS BASED ON THE AVAILABILITY OF FUNDS PROVIDED PURSUANT TO SECTION 25-527.01. IF SUFFICIENT FUNDS ARE NOT AVAILABLE PURSUANT TO SECTION 25-527.01 TO ENGAGE IN ALL ENFORCEMENT ACTIVITIES REQUESTED, THE DEPARTMENT MAY TAKE SUCH ACTION AS IS NECESSARY TO CREATE A WAITING LIST.
C. THE DEPARTMENT MAY CONTRACT WITH A COUNTY FOR THE ENFORCEMENT OF SPOUSAL MAINTENANCE ORDERS UNDER THIS SECTION IF THE COUNTY HAS OPTED TO PROVIDE ENFORCEMENT OF CHILD SUPPORT ORDERS.
D. THE SUPERIOR COURT HAS ORIGINAL JURISDICTION IN PROCEEDINGS BROUGHT BY THIS STATE OR BY A PERSON WHO IS OWED SPOUSAL MAINTENANCE TO ESTABLISH, ENFORCE OR MODIFY THE SPOUSAL MAINTENANCE OBLIGATION.
25-527.01. Spousal maintenance enforcement fund
THE SPOUSAL MAINTENANCE ENFORCEMENT FUND IS ESTABLISHED. MONIES IN THE FUND SHALL BE USED FOR THE ENHANCED COLLECTION OF MAINTENANCE FOR SPOUSES WITH NO DEPENDENT CHILDREN. THE FUND SHALL CONSIST OF MONIES RECEIVED PURSUANT TO SECTION 12-284, SUBSECTION D, AND LEGISLATIVE APPROPRIATIONS. THE FUND SHALL BE ADMINISTERED BY THE DEPARTMENT OF ECONOMIC SECURITY AND IS SUBJECT TO LEGISLATIVE APPROPRIATION. MONIES IN THE SPOUSAL MAINTENANCE ENFORCEMENT FUND ARE EXEMPT FROM THE PROVISIONS OF SECTION 35-190 RELATING TO LAPSING OF APPROPRIATIONS.
Sec. 13. Heading change
The article heading of title 25, chapter 5, article 5, Arizona Revised Statutes, is changed from "CHILD SUPPORT ARREST WARRANTS" to "SUPPORT ARREST WARRANTS", effective from and after August 31, 2003.
Sec. 14. Section 25-681, Arizona Revised Statutes, is amended effective from and after August 31, 2003, to read:
25-681. Support arrest warrant; definition
A. In any action or proceeding pursuant to section 25-502, on motion of a party or
on its own motion the court may issue a child support arrest warrant if the court
finds that all of the following apply to the person for whom the warrant is sought:
1. The person was ordered by the court to appear personally at a specific time and location.
2. The person received actual notice of the order, including a warning that the
failure to appear might result in the issuance of a child support arrest warrant.
3. The person failed to appear as ordered.
B. The judicial officer shall order the child support arrest warrant and the
clerk shall issue the warrant. The warrant shall contain the name of the person to be
arrested and other information required to enter the warrant in the Arizona criminal
justice information system. The warrant shall command that the named person be arrested
and either remanded to the custody of the sheriff or brought before the judicial officer
or, if the judicial officer is absent or unable to act, the nearest or most accessible
judicial officer of the superior court in the same county. A warrant that is issued
pursuant to this section remains in effect until it is executed or extinguished by the
court.
C. The court shall determine and the warrant shall state the amount the arrested person shall pay in order to be released from custody.
D. A facsimile of the judicial officer's signature that is applied to the warrant at the direction and under the supervision of the judicial officer is deemed to be the authorized signature of the judicial officer.
E. For the purposes of this article, "child support arrest warrant" means an
order that is issued by a judicial officer in a noncriminal child support matter and
that directs a peace officer in this state to arrest the person named in the warrant and
bring the person before the court.
Sec. 15. Section 25-682, Arizona Revised Statutes, is amended effective from and after August 31, 2003, to read:
25-682. Time and manner of execution; information
A. A child support arrest warrant is executed by the arrest of the person named
in the warrant. The warrant may be executed at any time.
B. When making an arrest pursuant to a child support arrest warrant, the
arresting officer shall inform the person named in the warrant that the arresting officer
has a child support arrest warrant unless:
1. The named person flees or forcibly resists before the arresting officer has an opportunity to inform the named person.
2. Providing this information will imperil the arrest.
C. In order to execute a child support arrest warrant, the arresting officer
may use reasonable force to enter any building in which the person named in the warrant
is or is reasonably believed to be.
D. The arresting officer does not have to possess the warrant at the time of the arrest. If after the arrest the arrested person requests to see the warrant, the arresting officer shall show the arrested person a copy of the warrant as soon as practicable.
E. The arrested person shall be brought before the issuing judicial officer as soon
as possible or, if that judicial officer is absent or unable to act, the nearest or most
accessible judicial officer of the superior court in the same county. In any event, the
arrested person shall be brought before a judicial officer of the superior court in the
issuing county or the county of arrest within twenty-four judicial business hours of the
execution of the warrant. If the person is arrested in a county other than the county in
which the warrant was issued, the arresting officer shall notify the sheriff and the
local title IV-D agency, if applicable, in the county in which the warrant was issued
that the person has been arrested. As soon as practicable, the sheriff of the county in
which the warrant was issued shall take custody of and transport the arrested person to
the issuing judicial officer or a judicial officer of the superior court in the county in
which the warrant was issued. If the arrested person is not taken into custody and
transported within seventy-two hours after arrest, the arrested person shall be released
and issued a written notice directing the arrested person to appear at a specified date
and time in the superior court in the county in which the warrant was issued. The notice
shall have the same force and effect as an order of the superior court. The notice shall
state that if the arrested person fails to appear as directed a child support arrest
warrant may be issued. A copy of this notice shall be sent to the court and the local
title IV-D agency, if applicable, in the county in which the warrant was issued.
Sec. 16. Section 25-683, Arizona Revised Statutes, is amended effective from and after August 31, 2003, to read:
25-683. Procedure after arrest; payment for release from custody
A. When a person who is arrested pursuant to a child support arrest warrant is
brought before the court, the judicial officer shall advise the arrested person of the
nature of the proceedings and shall set a date for the next court appearance. The
arrested person may be released from custody pending the hearing if the arrested person
pays the amount set by the court pursuant to section 25-681 or a larger amount as the
court determines. The court shall not reduce the amount ordered to be paid. The
arrested person shall not be released from custody without paying the amount unless the
court finds in writing or on the record that a compelling reason exists to release the
arrested person. Monies received pursuant to this subsection shall be deposited and
credited pursuant to section 25-502, subsection C.
B. If the arrested person pays the full amount set forth in the warrant before the
arrested person is brought before a judicial officer, the arrested person may be released
after receiving a notice to appear in the superior court in the county in which the
warrant was issued pursuant to the procedure prescribed in section 25-682, subsection
E. If the arrested person fails to appear as directed, a child support arrest
warrant may be issued.
C. The arresting agency shall forward all amounts that are paid by the arrested person for release pursuant to this subsection to the clerk of the superior court in the county in which the warrant was issued or the support payment clearinghouse for deposit and credit pursuant to section 25-502, subsection C.
Sec. 17. Section 25-684, Arizona Revised Statutes, is amended effective from and after August 31, 2003, to read:
25-684. Preexisting warrants
A civil arrest warrant that is issued before the effective date of this section
JULY 20, 1996 for the failure to appear in a child support enforcement
proceeding under this chapter or chapter 3 of this title automatically becomes a
child support arrest warrant after the effective date of this section JULY 20,
1996. This article applies to all procedures under the warrant, unless the agency
that is responsible for child support enforcement in a county elects not to convert
warrants issued in that county.
Sec. 18. Heading change
The chapter heading of title 32, chapter 37, Arizona Revised Statutes, is changed from "CHILD SUPPORT OBLIGATIONS" to "SUPPORT OBLIGATIONS", effective from and after August 31, 2003.
Sec. 19. Section 32-3701, Arizona Revised Statutes, is amended effective from and after August 31, 2003, to read:
32-3701. Support arrearages; suspension of license or certificate; applicability; definition
A. A licensing board or agency shall suspend a license within thirty days after
receiving a certificate of noncompliance from the court pursuant to section 25-518
RELATING TO THE LICENSEE'S NONPAYMENT OF CHILD SUPPORT OR SPOUSAL MAINTENANCE. The
licensing board or agency shall not lift the suspension until it receives a
certificate of compliance from the court.
B. The licensing board or agency shall notify the department of economic
security within thirty days in writing, or by any other means prescribed by the
department, of all license suspensions pursuant to this section. The information shall
include the person's name, address, date of birth and social security number.
C. This section applies to support obligations ordered by any state, territory or district of the United States.
D. For purposes of this section, "license" means any license, certificate, registration, permit or other authorization that:
1. Is issued by an agency or regulatory board.
2. Is subject before expiration to suspension, revocation, forfeiture or termination by the issuing board or agency.
3. A person must obtain to practice or engage in a particular business, occupation or profession.
Sec. 20. Section 41-1954, Arizona Revised Statutes, is amended effective from and after August 31, 2003, to read:
41-1954. Powers and duties
A. In addition to the powers and duties of the agencies listed in section 41-1953, subsection D the department shall:
1. Administer the following services:
(a) Employment services, which shall include manpower programs and work training, field operations, technical services, unemployment compensation, community work and training and other related functions in furtherance of programs under the social security act, as amended, the Wagner-Peyser act, as amended, the federal unemployment tax act, as amended, 33 United States Code, the family support act of 1988 (P.L. 100-485) and other related federal acts and titles.
(b) Individual and family services, which shall include a section on aging, services to children, youth and adults and other related functions in furtherance of social service programs under the social security act, as amended, title IV, grants to states for aid and services to needy families with children and for child-welfare services, title XX, grants to states for services, the older Americans act, as amended, the family support act of 1988 (P.L. 100-485) and other related federal acts and titles.
(c) Income maintenance services, which shall include categorical assistance programs, special services unit, child support AND SPOUSAL MAINTENANCE collection services, establishment of paternity services, maintenance and operation of a state case registry of child support AND SPOUSAL MAINTENANCE orders, a state directory of new hires, a support payment clearinghouse and other related functions in furtherance of programs under the social security act, title IV, grants to states for aid and services to needy families with children and for child-welfare services, title XX, grants to states for services, as amended, and other related federal acts and titles.
(d) Rehabilitation services, which shall include vocational rehabilitation services and sections for the blind and visually impaired, communication disorders, correctional rehabilitation and other related functions in furtherance of programs under the vocational rehabilitation act, as amended, the Randolph-Sheppard act, as amended, and other related federal acts and titles.
(e) Administrative services, which shall include the coordination of program evaluation and research, interagency program coordination and in-service training, planning, grants, development and management, information, legislative liaison, budget, licensing and other related functions.
(f) Manpower planning, which shall include a state manpower planning council for the purposes of the federal-state-local cooperative manpower planning system and other related functions in furtherance of programs under the comprehensive employment and training act of 1973, as amended, and other related federal acts and titles.
(g) Economic opportunity services, which shall include the furtherance of programs prescribed under the economic opportunity act of 1967, as amended, and other related federal acts and titles.
(h) Mental retardation and other developmental disability programs, with emphasis on referral and purchase of services. The program shall include educational, rehabilitation, treatment and training services and other related functions in furtherance of programs under the developmental disabilities services and facilities construction act, Public Law 91-517, and other related federal acts and titles.
(i) Nonmedical home and community based services and functions including department designated case management, housekeeping services, chore services, home health aid, personal care, visiting nurse services, adult day care or adult day health, respite sitter care, attendant care, home delivered meals and other related services and functions.
2. Provide a coordinated system of initial intake, screening, evaluation and referral of persons served by the department.
3. Adopt rules it deems necessary or desirable to further the objectives and programs of the department.
4. Formulate policies, plans and programs to effectuate the missions and purposes of the department.
5. Employ, determine the conditions of employment and prescribe the duties and powers of administrative, professional, technical, secretarial, clerical and other persons as may be necessary in the performance of its duties, contract for the services of outside advisors, consultants and aides as may be reasonably necessary and reimburse department volunteers, designated by the director, for expenses in transporting clients of the department on official business.
6. Make contracts and incur obligations within the general scope of its activities and operations subject to the availability of funds.
7. Contract with or assist other departments, agencies and institutions of the state, local and federal governments in the furtherance of its purposes, objectives and programs.
8. Be designated as the single state agency for the purposes of administering and in furtherance of each federally supported state plan.
9. Accept and disburse grants, matching funds and direct payments from public or private agencies for the conduct of programs which are consistent with the overall purposes and objectives of the department.
10. Provide information and advice on request by local, state and federal agencies and by private citizens, business enterprises and community organizations on matters within the scope of its duties subject to the departmental rules on the confidentiality of information.
11. Establish and maintain separate financial accounts as required by federal law or regulations.
12. Advise with and make recommendations to the governor and the legislature on all matters concerning its objectives.
13. Have an official seal which shall be judicially noticed.
14. Annually estimate the current year's population of each county, city and town in this state, using the periodic census conducted by the United States department of commerce, or its successor agency, as the basis for such estimates and deliver such estimates to the economic estimates commission prior to December 15.
15. Estimate the population of any newly annexed areas of a political subdivision as of July 1 of the fiscal year in which the annexation occurs and deliver such estimates as promptly as is feasible after the annexation occurs to the economic estimates commission.
16. Establish and maintain a statewide program of services for persons who are both hearing impaired and visually impaired and coordinate appropriate services with other agencies and organizations to avoid duplication of these services and to increase efficiency. The department of economic security shall enter into agreements for the utilization of the personnel and facilities of the department of economic security, the department of health services and other appropriate agencies and organizations in providing these services.
17. Establish and charge fees for deposit in the department of economic security prelayoff assistance services fund to employers who voluntarily participate in the services of the department which provide job service and retraining for persons who have been or are about to be laid off from employment. The department shall charge only those fees necessary to cover the costs of administering the job service and retraining services.
18. Establish a focal point for addressing the issue of hunger in Arizona and provide coordination and assistance to public and private nonprofit organizations which aid hungry persons and families throughout this state. Specifically such activities shall include:
(a) Collecting and disseminating information regarding the location and availability of surplus food for distribution to needy persons, the availability of surplus food for donation to charity food bank organizations, and the needs of charity food bank organizations for surplus food.
(b) Coordinating the activities of federal, state, local and private nonprofit organizations which provide food assistance to the hungry.
(c) Accepting and disbursing federal monies, and any state monies appropriated by the legislature, to private nonprofit organizations in support of the collection, receipt, handling, storage, and distribution of donated or surplus food items.
(d) Providing technical assistance to private nonprofit organizations which provide or intend to provide services to the hungry.
(e) Developing a state plan on hunger which, at a minimum, identifies the magnitude of the hunger problem in this state, the characteristics of the population in need, the availability and location of charity food banks and the potential sources of surplus food, assesses the effectiveness of the donated food collection and distribution network and other efforts to alleviate the hunger problem, and recommends goals and strategies to improve the status of the hungry. The state plan on hunger shall be incorporated into the department's state comprehensive plan prepared pursuant to section 41-1956.
(f) Establishing a special purpose advisory council on hunger pursuant to section 41-1981.
19. Establish an office to address the issue of homelessness and to provide coordination and assistance to public and private nonprofit organizations which prevent homelessness or aid homeless individuals and families throughout this state. These activities shall include:
(a) Promoting and participating in planning for the prevention of homelessness and the development of services to homeless persons.
(b) Identifying and developing strategies for resolving barriers in state agency service delivery systems that inhibit the provision and coordination of appropriate services to homeless persons and persons in danger of being homeless.
(c) Assisting in the coordination of the activities of federal, state and local governments and the private sector which prevent homelessness or provide assistance to homeless people.
(d) Assisting in obtaining and increasing funding from all appropriate sources to prevent homelessness or assist in alleviating homelessness.
(e) Serving as a clearinghouse on information regarding funding and services available to assist homeless persons and persons in danger of being homeless.
(f) Developing an annual state comprehensive homeless assistance plan to prevent and alleviate homelessness.
(g) Submitting an annual report by January 1, 1992 and each year thereafter to the governor, the president of the senate and the speaker of the house of representatives on the status of homelessness and efforts to prevent and alleviate homelessness.
20. Cooperate with the Arizona Mexico commission in the governor's office and with researchers at universities in this state to collect data on issues that are within the scope of the department's duties and that relate to quality of life, trade and economic development in this state in a manner that will help the Arizona Mexico commission to assess the economic competitiveness of this state and of the state of Sonora, Mexico.
B. If the department has responsibility for the care, custody or control of a child or is paying the cost of care for a child, it may serve as representative payee to receive and administer social security and veterans administration benefits and other benefits payable to such child. Notwithstanding any law to the contrary, the department:
1. Shall deposit, pursuant to sections 35-146 and 35-147, such monies as it receives to be retained separate and apart from the state general fund on the books of the department of administration.
2. May use such monies to defray the cost of care and services expended by the department for the benefit, welfare and best interests of the child and invest any of the monies that the director determines are not necessary for immediate use.
3. Shall maintain separate records to account for the receipt, investment and disposition of funds received for each child.
4. Shall, upon termination of the department's responsibility for the child, release any funds remaining to the child's credit in accordance with the requirements of the funding source or in the absence of such requirements shall release the remaining funds to:
(a) The child, if the child is at least eighteen years of age or is emancipated.
(b) The person responsible for the child if the child is a minor and not emancipated.
C. Nothing in subsection B of this section shall pertain to benefits payable to or for the benefit of a child receiving services under title 36.
D. Volunteers reimbursed for expenses pursuant to subsection A, paragraph 5 of this section are not eligible for workers' compensation under title 23, chapter 6.
E. In implementing the temporary assistance for needy families program pursuant to Public Law 104-193, the department shall provide for cash assistance to two parent families if both parents are able to work only upon documented participation by both parents in work activities described in title 46, chapter 2, article 5, except that payments may be made to families who do not meet the participation requirements if:
1. It is determined on an individual case basis that they have emergency needs.
2. The family is determined to be eligible for diversion from long-term cash assistance pursuant to title 46, chapter 2, article 5.
F. The department shall provide for cash assistance under temporary assistance for needy families pursuant to Public Law 104-193 to two parent families for no longer than six months if both parents are able to work, except that additional assistance may be provided on an individual case basis to families with extraordinary circumstances. The department shall establish by rule the criteria to be used to determine eligibility for additional cash assistance.
G. The department may establish a representative payee program to provide representative payee services to manage social security or supplemental security income benefits for persons who are receiving general assistance benefits pursuant to section 46-233 and who require the services of a representative payee to manage social security or supplemental security income benefits. The department may use not more than an average of eight hundred fifty dollars for any one person annually from monies appropriated for general assistance benefits for the purpose of paying persons or agencies to provide representative payee services.
H. The department shall adopt the following discount medical payment system no later than October 1, 1993 for persons who the department determines are eligible and who are receiving rehabilitation services pursuant to subsection A, paragraph 1, subdivision (d) of this section:
1. For inpatient hospital admissions and outpatient hospital services the department shall reimburse a hospital according to the tiered per diem rates and outpatient cost-to-charge ratios established by the Arizona health care cost containment system pursuant to section 36-2903.01, subsection J.
2. The department's liability for a hospital claim under this subsection is subject to availability of funds.
3. A hospital bill is considered received for purposes of paragraph 5 of this subsection upon initial receipt of the legible, error-free claim form by the department if the claim includes the following error-free documentation in legible form:
(a) An admission face sheet.
(b) An itemized statement.
(c) An admission history and physical.
(d) A discharge summary or an interim summary if the claim is split.
(e) An emergency record, if admission was through the emergency room.
(f) Operative reports, if applicable.
(g) A labor and delivery room report, if applicable.
4. The department shall require that the hospital pursue other third party payors prior to submitting a claim to the department. Payment received by a hospital from the department pursuant to this subsection is considered payment by the department of the department's liability for the hospital bill. A hospital may collect any unpaid portion of its bill from other third party payors or in situations covered by title 33, chapter 7, article 3.
5. For inpatient hospital admissions and outpatient hospital services rendered on and after October 1, 1997, if the department receives the claim directly from the hospital, the department shall pay a hospital's rate established according to this section subject to the following:
(a) If the hospital's bill is paid within thirty days of the date the bill was received, the department shall pay ninety-nine per cent of the rate.
(b) If the hospital's bill is paid after thirty days but within sixty days of the date the bill was received, the department shall pay one hundred per cent of the rate.
(c) If the hospital's bill is paid any time after sixty days of the date the bill was received, the department shall pay one hundred per cent of the rate plus a fee of one per cent per month for each month or portion of a month following the sixtieth day of receipt of the bill until the date of payment.
6. For medical services other than those for which a rate has been established pursuant to section 36-2903.01, subsection J, the department shall pay according to the Arizona health care cost containment system capped fee-for-service schedule adopted pursuant to section 36-2904, subsection M or any other established fee schedule the department determines reasonable.
I. The department shall not pay claims for services pursuant to this section which are submitted more than nine months after the date of service for which the payment is claimed.
J. To assist in the location of persons or assets for the purpose of establishing paternity, establishing, modifying or enforcing child support AND SPOUSAL MAINTENANCE obligations and other related functions, the department has access, including automated access if the records are maintained in an automated data base, to records of state and local government agencies, including:
1. Vital statistics, including records of marriage, birth and divorce.
2. State and local tax and revenue records, including information on residence address, employer, income and assets.
3. Records concerning real and titled personal property.
4. Records of occupational and professional licenses.
5. Records concerning the ownership and control of corporations, partnerships and other business entities.
6. Employment security records.
7. Records of agencies administering public assistance programs.
8. Records of the motor vehicle division of the department of transportation.
9. Records of the state department of corrections.
10. Any system used by a state agency to locate a person for motor vehicle or law enforcement purposes, including access to information contained in the Arizona criminal justice information system.
K. Notwithstanding subsection J of this section, the department or its agents shall not seek or obtain information on the assets of an individual unless paternity is presumed pursuant to section 25-814 or established.
L. Access to records of the department of revenue pursuant to subsection J of this section shall be provided in accordance with section 42-2003.
M. The department also has access to certain records held by private entities with respect to child support obligors or obligees, or individuals against whom such an obligation is sought. The information shall be obtained as follows:
1. In response to a child support subpoena issued by the department pursuant to section 25-520, the names and addresses of these persons and the names and addresses of the employers of these persons, as appearing in customer records of public utilities and cable television companies.
2. Information on these persons held by financial institutions.
N. Pursuant to department rules, the department may compromise or settle any support debt owed to the department if the director or an authorized agent determines that it is in the best interest of the state and after considering each of the following factors:
1. The obligor's financial resources.
2. The cost of further enforcement action.
3. The likelihood of recovering the full amount of the debt.
O. Notwithstanding any law to the contrary, a state or local governmental agency or private entity is not subject to civil liability for the disclosure of information made in good faith to the department pursuant to this section.
Sec. 21. Section 42-1122, Arizona Revised Statutes, is amended effective from and after August 31, 2003, to read:
42-1122. Setoff for debts to state agencies and courts; revolving fund; definitions
A. The department shall establish a liability setoff program by which refunds under
sections 42-1118, 43-1072 and 43-1073 may be used to satisfy debts which THAT
the taxpayer owes this state or a court OR OVERDUE SUPPORT AS DEFINED IN THIS
SECTION. The program shall comply with the standards and requirements prescribed by
this section.
B. If a taxpayer owes an agency or court a debt OR OWES OVERDUE SUPPORT AS DEFINED IN THIS SECTION, the agency or court may, by November 1 of each year, notify the department, furnishing at least the state agency, court or program identifier, the first name, last name, middle initial and social security number of the debtor, and the amount of the debt.
C. The department shall match the information submitted by the agency or court with taxpayers who qualify for refunds under section 42-1118 and:
1. Notify the agency or court of a potential match, the taxpayer's home address and any additional taxpayer identification numbers used by the taxpayer. Even if the taxpayer is not entitled to a refund, the department of revenue shall provide to the department of economic security, for child support AND SPOUSAL MAINTENANCE purposes only, the home address of a taxpayer whose debt for overdue support, INCLUDING SPOUSAL MAINTENANCE, is referred for setoff and any additional taxpayer identification numbers used by the taxpayer.
2. Request final agency or court confirmation within ten days of the match and of the continuation of the debt. If the agency or court fails to provide confirmation within forty-five days after the request, the department shall release the refund to the taxpayer.
D. An agency or court may submit updated information, additions, deletions and other changes on a quarterly or more frequent basis, at the convenience of the agency or court.
E. On confirmation pursuant to subsection C, paragraph 2 of this section, the agency shall notify the taxpayer, by mail to the most recent address provided by the taxpayer to the department, of the intention to set off the debt against the refund due and of the taxpayer's right to appeal to the appropriate court, or to request a review by the agency pursuant to agency rule, within thirty days of the mailing of the notice. The basis for a request for review shall not include the validity of the claim if its validity has been established at an agency hearing, by judicial review in a court of competent jurisdiction in this or any other state or by final administrative decision and shall state with specificity why the taxpayer claims the obligation does not exist or why the amount of the obligation is incorrect. If the setoff accounts for only a portion of the refund due, the remainder of the refund shall be sent to the taxpayer.
F. If, within thirty days of the mailing of the notice, the taxpayer requests a review by the agency or provides the agency with proof that an appeal has been taken to the appropriate court, the agency shall immediately notify the department and the setoff procedure shall be stayed pending resolution of the review or appeal.
G. If the department does not receive notice of a timely appeal, it shall draw and deliver a warrant in the amount of the available refund up to the amount of the debt in favor of the agency and notify the taxpayer of the action by mail.
H. The provisions of subsections E, F and G of this section do not apply to a debt imposed by a court. A court shall not use this section to satisfy a judgment or payment of a fine or civil penalty until the judgment has become final or until the time to appeal the imposition of a fine or civil penalty has expired.
I. A revolving fund is established to recover and pay the cost of operating the setoff program under this section. The department may prescribe a fee to be collected from each agency or court utilizing the setoff procedure or from the taxpayer, and the amount shall be deposited in the fund. The amount of the fee shall reasonably reflect the actual cost of the service provided. Beginning July 1, 1999, monies in the revolving fund are subject to legislative appropriation.
J. If agencies or courts have two or more delinquent accounts for the same taxpayer, the refund may be apportioned among them pursuant to rules prescribed by the department of revenue, except that a setoff to the department of economic security for overdue support, INCLUDING SPOUSAL MAINTENANCE, has priority over all other setoffs.
K. If the refund is insufficient to satisfy the entire debt, the remainder of the debt may be collected by the agency or court as provided by law or resubmitted for setoff against subsequent refunds.
L. In the case of a refund that is intercepted in error under this section, the taxpayer shall be reimbursed by the agency or court with interest pursuant to section 42-1123.
M. Except as is reasonably necessary to accomplish the purposes of this section, the department shall not disclose under this section any information in violation of chapter 2, article 1 of this title.
N. An agency or court shall not enter an agreement with a debtor for:
1. The assignment of any prospective refund to the agency or court in satisfaction of the debt.
2. Payment of the debt if the debt has been confirmed to the department for setoff under subsection C, paragraph 2 of this section.
O. If a tax refund is based on a joint income tax return and the department of economic security receives a written claim from the nonobligated spouse within forty-five days after the notice of a setoff for overdue child support OR SPOUSAL MAINTENANCE, the setoff only applies to that portion of the refund due to the obligor. The nonobligated spouse shall provide to the department of economic security copies of both the obligated and nonobligated spouse's federal W-2 forms and evidence of estimated tax payments supporting the proportionate share of each spouse's payment of tax. The department of economic security shall retain the amount of the set off refund due to the obligated spouse determined by a proration based on the tax payments of each spouse by estimated tax payment or tax withheld from wages.
P. In this section:
1. "Agency" means a department, agency, board, commission or institution of this state. Agency also means a corporation that is under contract with this state and that provides a service that would otherwise be provided by a department, agency, board, commission or institution of this state, if the contract specifically authorizes participation in the liability setoff program and the attorney general's office has reviewed the contract and approves such authorization. The participation in the liability setoff program shall be limited to debt related to the services the corporation provides for or on behalf of this state.
2. "Court" means all courts of record, justice courts, municipal courts and police courts.
3. "Debt" means an amount over fifty dollars owed to an agency or court by a taxpayer and may include a judgment in favor of this state or a political subdivision of this state, interest, penalties, charges, costs, fees, fines, civil penalties, surcharges, assessments, administrative charges or any other amount. Debt also includes monies owed by a taxpayer for overdue support, INCLUDING SPOUSAL MAINTENANCE, and referred to the department of economic security for collection.
4. "Overdue support" means a delinquency in court ordered payments for support of a
child or for spousal maintenance to the parent with whom the child is living if child
support is also THAT IS being enforced pursuant to an assignment or application
filed under 42 United States Code section 654(6) OR PURSUANT TO SECTION 25-527 OR
ENFORCED BY A COURT.
Sec. 22. Requirements for enactment; two-thirds vote
Pursuant to article IX, section 22, Constitution of Arizona, this act is effective only on the affirmative vote of at least two-thirds of the members of each house of the legislature and is effective immediately on the signature of the governor or, if the governor vetoes this act, on the subsequent affirmative vote of at least three-fourths of the members of each house of the legislature.