Chief Sponsor: Brady Brammer

Senate Sponsor: Daniel Hemmert

6     Cosponsors:
7     Cheryl K. Acton
Karen Kwan


10     General Description:
11          This bill addresses collections related to domestic relations debt.
12     Highlighted Provisions:
13          This bill:
14          ▸     defines terms; and
15          ▸     addresses what a court shall order under certain circumstances for collection of an
16     obligation or alleged obligation to pay past due child support or alimony.
17     Money Appropriated in this Bill:
18          None
19     Other Special Clauses:
20          None
21     Utah Code Sections Affected:
22     ENACTS:
23          30-3-3.5, Utah Code Annotated 1953

25     Be it enacted by the Legislature of the state of Utah:
26          Section 1. Section 30-3-3.5 is enacted to read:
27          30-3-3.5. Collection fee for past due child support or alimony.
28          (1) As used in this section:

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

57     Subsection (2).