Assigned to FS                                                                                                                                              AS ENACTED

 

 

 

ARIZONA STATE SENATE

Phoenix, Arizona

 

FINAL REVISED

FACT SHEET FOR S.B. 1032

 

child support enforcement

 

Purpose

 

            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, effective January 1, 2002.

 

Background

 

            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 requires a payor to withhold the lump sum payment and forward the amount on the DES notice to the child support clearinghouse.

 

Provisions

 

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.

 

Limited Income Withholding Orders

 

4.      Specifies that a limited income withholding order supercedes wage payment laws.

 

5.      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 arrearage.

 

6.      Requires DES to specify the amount of child support owed on the limited income withholding order.

 

7.      Requires the employer, payor or other holder who receives an order from DES to withhold the specified amount and forward it to the child support clearinghouse.

 

8.      Defines lump sum payments.

 

9.      Specifies notice, due process and delivery procedures.

 

 

Miscellaneous

 

10.  Makes technical and conforming changes.

 

11.  Provides for a general effective dates for check fees.

 

12.  Contains a delayed effective date for limited income withholding orders of January 1, 2002.

 

Amendments Adopted by the House of Representatives

 

1.      Changed "payments" to "payment."

 

Amendments Adopted in Conference Committee

 

1.      Makes a withholding order supercede general wage payment law.

 

2.      Removes requirement for payors to withhold any lump sum payment for 30 days and notify DES to determine whether the person owes support.

 

3.      Requires DES to notify payors of support arrearages.

 

4.      Requires payors to forward to the clearinghouse the amount specified on an order.

 

5.      Delays the effective date of limited income withholding orders.

 

Senate Action                                                               House Action

 

FS                    1/17/01     DP     6-0-0-0                     HS                   3/13/01     DP     8-0-0-2

3rd Read           1/24/01               29-0-1-0                   3rd Read           3/26/01               53-3-4-0

Final Pass         4/19/01               30-0-0-0                   Final Pass         4/26/01               49-5-6-0

 

Signed by the Governor 4/30/01

Chapter 264

 

Prepared by Senate Staff

May 8, 2001