ARIZONA STATE SENATE
Phoenix, Arizona
child support enforcement
Allows
the Department of Economic Security (DES) to charge a fee for a dishonored
check for support. Allows DES to issue
a limited income withholding order on a lump sum or nonperiodic payment due a
person who owes support.
The
DES Division of Child Support Enforcement administers the federally mandated
child support enforcement program in Arizona.
Primary services are paternity establishment, location of noncustodial
parents, support order establishment and collections and enforcement of support
orders. Although collections doubled
between fiscal years 1994 and 1999, approximately 40 percent of families with
support orders still received no support in FY 1998-1999.
This
legislation allows DES to charge a fee for a dishonored check or draft
presented to them for payment of support and specifies the amount DES can
charge. It also allows DES to collect current support payments and any
arrearages from an irregular or lump sum payment such as severance pay, bonuses
and insurance settlements. The bill
specifies notice, delivery and due process procedures for DES. It also
specifies procedures for a payor to notify DES before the payment is made, hold
the payment for 30 days after the payment is due and release the payment under
specified conditions.
Check Fees
1. Allows DES to collect a fee for a dishonored check or draft for support payments.
2. Limits the fee to no more than $25 plus actual charges assessed by the financial institution.
3. Requires DES to deposit fees in a child support enforcement administration fund.
4. Allows DES to issue a limited income withholding order to an employer, payor or other holder of a nonperiodic or lump sum payment that is owed to a person with a current support obligation or any arrearages.
5. Requires the employer, payor or other holder to notify DES before the payment is payable and to hold the payment for 30 days after the payment due date.
6. Defines lump sum payments.
7. Specifies notice, due process and delivery procedures and terms for release of the payment.
8. Makes technical and conforming changes.
9. Provides for a general effective date.
Prepared by Senate Staff
January 12, 2001