House of Representatives

SB 1032

child support enforcement

Sponsors: Senator Petersen

DP	Committee on Human Services
x	Caucus and COW
	As Passed the House

SB 1032 allows the Department of Economic Security to charge a fee for dishonored checks, and allows DES (or its agent) to issue a limited income withholding order, under certain guidelines, to any employer, payor or other holder of a non-periodic or lump sum payment that is owed or held for an obligor.

History

A.R.S. stipulates that the maximum fee for a dishonored check is $25.00, and that additional fees may be assessed for any charges by the involved financial institution. The funds that would be collected as a result of SB 1032 would be deposited by statutory specification, which requires that monies be remitted to the state treasurer and thence deposited into the state general fund, unless otherwise prescribed by law.

Provisions

· Permits DES to charge a fee for a dishonored check and deposit monies in accordance with statutory guidelines, with the monies being deposited into a child support enforcement administration fund.

· Allows DES or its agent to issue a limited income withholding order to any employer, payor or holder of a non-periodic lump sum that is owed or held for the benefit of an obligor.

· Stipulates that DES or its agent shall serve the limited income withholding order pursuant to statutory standards, and that within ten days the employer, payor or holder must deliver or mail a copy of the order to the obligor.

· Specifies that the limited income order must include:

· A statement to the employer, payor or holder regarding the amount of support owed.

· Directions for the employer, payor or holder to withhold and pay the amount of support owed, unless exempt by law, to the support payment clearinghouse.

· A notice to the obligor of the right to an administrative review and the right to contest the limited income withholding order, in accordance with statute.

· Requires the employer, payor or holder who receives an income withholding order to notify DES of a non-periodic or lump sum payment before the payment is payable to the obligor, and hold the payment for thirty days after the date it would have otherwise been paid.

· States that the employer, payor or holder shall release the non-periodic or lump sum payment to the appropriate person or agency upon any one of three conditions:

· Receipt of a limited income withholding order from DES or its agent that orders the employer, payor or holder to withhold and pay the amount specified.

· Notification from DES or its agent that a limited income withholding order will not be issued.

· Expiration of the 30 day holding period without issuance of either a notification or a limited income withholding order.

· Defines lump sump payments.

SB 1032 passed the Human Services Committee unamended.

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45th Legislature

First Regular Session 2 March 13, 2001

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