7 Cheryl K. Acton
9 LONG TITLE
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:
19 Other Special Clauses:
21 Utah Code Sections Affected:
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).