Download Zipped Introduced WordPerfect HB0265.ZIP
[Status][Bill Documents][Fiscal Note][Bills Directory]

H.B. 265






Chief Sponsor: Paul Ray

Senate Sponsor: Carlene M. Walker

             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
             18      Services, 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
             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:
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
             98      to 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
             113      shall 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.

Legislative Review Note
    as of 12-31-07 9:59 AM

Office of Legislative Research and General Counsel

[Bill Documents][Bills Directory]