H.B. 265 Enrolled

1

OFFICE OF RECOVERY SERVICES -
2 ELECTRONIC FUNDS TRANSFER
3 2008 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Paul Ray
6 Senate Sponsor: Carlene M. Walker
7
8 LONG TITLE
9 General Description:
10 This bill amends portions of the Recovery Services chapter of the Utah Human Services
11 Code, relating to electronic funds transfer.
12 Highlighted Provisions:
13 This bill:
14 . defines terms;
15 . recodifies provisions of the Recovery Services chapter of the Utah Human Services
16 Code, relating to electronic funds transfer;
17 . requires the Office of Recovery Services, within the Department of Human Services,
18 to distribute child support payments by electronic funds transfer;
19 . grants rulemaking authority to the Office of Recovery Services to make exceptions
20 to the electronic funds transfer requirement, described above, where the requirement
21 would impose an undue hardship on the office or a person, or where the distribution
22 will not likely be made on a recurring basis; and
23 . makes technical changes.
24 Monies Appropriated in this Bill:
25 None
26 Other Special Clauses:
27 None
28 Utah Code Sections Affected:
29 AMENDS:

30 62A-11-401, as last amended by Laws of Utah 2000, Chapter 161
31 ENACTS:
32 62A-11-701, Utah Code Annotated 1953
33 62A-11-702, Utah Code Annotated 1953
34 62A-11-704, Utah Code Annotated 1953
35 RENUMBERS AND AMENDS:
36 62A-11-703, (Renumbered from 62A-11-502.1, as enacted by Laws of Utah 2007,
37 Chapter 131)
38 REPEALS:
39 62A-11-403.1, as enacted by Laws of Utah 2007, Chapter 131
40
41 Be it enacted by the Legislature of the state of Utah:
42 Section 1. Section 62A-11-401 is amended to read:
43 62A-11-401. Definitions.
44 As used in this part [and in], Part 5, and Part 7:
45 (1) "Business day" means a day on which state offices are open for regular business.
46 (2) "Child" is defined in Section 62A-11-303 .
47 (3) "Child support" means a base child support award as defined in [Subsection]
48 Section 78-45-2 [(4)], or a financial award for uninsured monthly medical expenses, ordered by
49 a tribunal for the support of a child, including current periodic payments, all arrearages which
50 accrue under an order for current periodic payments, and sum certain judgments awarded for
51 arrearages, medical expenses, and child care costs. Child support includes obligations ordered
52 by a tribunal for the support of a spouse or former spouse with whom the child resides if the
53 spousal support is collected with the child support.
54 (4) "Child support order" or "support order" means a judgment, decree, or order,
55 whether temporary, final, or subject to modification, issued by a tribunal for child support and
56 related costs and fees, interest and penalties, income withholding, attorneys' fees, and other
57 relief.

58 (5) "Child support services" is defined in Section 62A-11-103 .
59 (6) "Delinquent" or "delinquency" means that child support in an amount at least equal
60 to current child support payable for one month is overdue.
61 (7) "Immediate income withholding" means income withholding without regard to
62 whether a delinquency has occurred.
63 (8) "Income" is defined in Section 62A-11-103 .
64 (9) "Jurisdiction" means a state or political subdivision of the United States, a territory
65 or possession of the United States, the District of Columbia, the Commonwealth of Puerto
66 Rico, an Indian tribe or tribal organization, or any comparable foreign nation or political
67 subdivision.
68 (10) "Obligee" is defined in Section 62A-11-303 .
69 (11) "Obligor" is defined in Section 62A-11-303 .
70 (12) "Office" is defined in Section 62A-11-103 .
71 (13) "Payor" means an employer or any person who is a source of income to an obligor.
72 Section 2. Section 62A-11-701 is enacted to read:
73 Part 7. Electronic Funds Transfer
74 62A-11-701. Title.
75 This part is known as "Electronic Funds Transfer."
76 Section 3. Section 62A-11-702 is enacted to read:
77 62A-11-702. Definitions.
78 (1) The definitions in Section 62A-11-401 apply to this section.
79 (2) As used in this section, "account" is as defined in Section 62A-11-103 .
80 Section 4. Section 62A-11-703 , which is renumbered from Section 62A-11-502.1 is
81 renumbered and amended to read:
82 [62A-11-502.1]. 62A-11-703. Alternative payment by obligor through
83 electronic funds transfer.
84 (1) The office may enter into a written alternative payment agreement with an obligor
85 which provides for electronic payment of child support under Part 4, Income Withholding in

86 IV-D Cases, or Part 5, Income Withholding in Non IV-D Cases. Electronic payment shall be
87 accomplished through an automatic withdrawal from the obligor's account at a financial
88 institution.
89 (2) The alternative payment agreement shall:
90 (a) provide for electronic payment of child support in lieu of income withholding;
91 (b) specify the date on which electronic payments will be withdrawn from an obligor's
92 account; and
93 (c) specify the amount which will be withdrawn.
94 (3) The office may terminate the agreement and initiate immediate income withholding
95 if:
96 (a) required to meet federal or state requirements or guidelines;
97 (b) funds available in the account at the scheduled time of withdrawal are insufficient to
98 satisfy the agreement; or
99 (c) requested by the obligor.
100 (4) If the payment amount requires adjusting, the office may initiate a new written
101 agreement with the obligor. If, for any reason, the office and obligor fail to agree on the terms,
102 the office may terminate the agreement and initiate income withholding.
103 (5) If an agreement is terminated for insufficient funds, a new agreement may not be
104 entered into between the office and obligor for a period of at least 12 months.
105 (6) The office shall make rules specifying eligibility requirements for obligors to enter
106 into alternative payment agreements.
107 Section 5. Section 62A-11-704 is enacted to read:
108 62A-11-704. Mandatory distribution to obligee through electronic funds transfer.
109 (1) Notwithstanding any provision of this chapter to the contrary, the office shall,
110 except as provided in Subsection (3), distribute child support payments, under Subsection
111 62A-11-413 (2) or Section 62A-11-505 , by electronic funds transfer.
112 (2) Distribution of child support payments by electronic payment under this section shall
113 be made to:

114 (a) an account of the obligee; or
115 (b) an account that may be accessed by the obligee through the use of an electronic
116 access card.
117 (3) (a) Subject to Subsection (3)(b), the office may make rules, pursuant to Title 63,
118 Chapter 46a, Utah Administrative Rulemaking Act, to allow exceptions to the requirement to
119 make distributions by electronic funds transfer under Subsection (1).
120 (b) The rules described in Subsection (3)(a) may only allow exceptions under
121 circumstances where:
122 (i) requiring distribution by electronic funds transfer would result in an undue hardship
123 to the office or a person; or
124 (ii) it is not likely that distribution will be made to the obligee on a recurring basis.
125 Section 6. Repealer.
126 This bill repeals:
127 Section 62A-11-403.1, Alternative payment through electronic funds transfer.