This document includes House Committee Amendments incorporated into the bill on Thu, Feb 6, 2020 at 8:28 AM by pflowers.



Chief Sponsor: Brady Brammer

Senate Sponsor: Daniel Hemmert


8     General Description:
9          This bill addresses collections related to domestic relations debt.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines terms; and
13          ▸     addresses what a court shall order under certain circumstances for collection of an
14     obligation or alleged obligation to pay past due child support or alimony.
15     Money Appropriated in this Bill:
16          None
17     Other Special Clauses:
18          None
19     Utah Code Sections Affected:
20     ENACTS:
21          30-3-3.5, Utah Code Annotated 1953

23     Be it enacted by the Legislature of the state of Utah:
24          Section 1. Section 30-3-3.5 is enacted to read:
25          30-3-3.5. Collection fee for past due child support or alimony.
26          (1) As used in this section:
27          (a) "Debtor" means a person obligated or allegedly obligated to pay a domestic

28     relations debt.
29          (b) "Domestic relations debt" means an obligation or alleged obligation to pay past due
30     child support or alimony.
31          (2) (a) A court shall order the amounts described in Subsection (2)(b) be paid, if:
32          (i) the court issues a judgment requiring the payment of a domestic relations debt by
33     the debtor;
34          (ii) imposing a collection fee on the debtor or in relation to the domestic relations debt
35     is not prohibited or otherwise restricted by another federal or state law; and
36          (iii) the person owed the domestic relations debt has a contingency arrangement with
37     an attorney to collect the domestic relations debt.
38          (b) If the conditions of Subsection (2)(a) are met, a court shall order payment of:
39          (i) the principal amount due;
40          (ii) applicable interest;
41          (iii) a collection fee equal to the amount provided in the contingency agreement, except
42     that the collection fee may not exceed the lesser of:
43          (A) the actual amount the person owed the domestic relations debt is required to pay
44     for collection costs, regardless of whether that amount is a specific dollar amount or a
45     percentage of the principal amount owed for the domestic relations debt; or
46          (B) 40% of the principal amount owed to the person for the domestic relations debt;
47          (iv) reasonable attorney fees; and
48          (v) costs, if any, related to obtaining the judgment described in Subsection (2)(a)(i).
49          (3) The obligation to pay a collection fee described in Subsection (2)(b)(iii) is incurred
50     at the time the person owed a domestic relations debt enters into an agreement with an attorney
51     to collect the domestic relations debt.
52          (4) An obligation to pay a collection fee imposed under this section is in addition to
53     any obligation to pay reasonable attorney fees that may exist.
53a     Ĥ→ (5) The Office of Recovery Services may not collect an order issued pursuant to Subsection
53b     (2). ←Ĥ