SB 190: "An Act relating to income withholding and other methods of enforcement for orders of support; and providing for an effective date."
00SENATE BILL NO. 190 01 "An Act relating to income withholding and other methods of enforcement for 02 orders of support; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 25.27.062(a) is amended to read: 05 (a) A judgment, court order, or order of the agency under this chapter 06 providing for support must contain an income withholding order. An income 07 withholding order under this section may not be enforced unless 08 (1) it is entered by the agency or the court during a proceeding to 09 establish or modify a duty of support being enforced by the agency; 10 (2) it is entered by the agency or the court after December 31, 11 1993, during a proceeding to establish or modify a duty of support not being 12 enforced by the agency; or 13 (3) notice of the order is served on the obligor in the manner 14 provided in (d) of this section or AS 25.27.160 [HAD NOTICE OF THE ORDER
01 WHEN IT WAS MADE OR AN APPLICATION FOR THE ORDER WAS SERVED 02 ON THE OBLIGOR IN THE MANNER PROVIDED FOR SERVICE OF A 03 SUMMONS UNDER RULE 4, ALASKA RULES OF CIVIL PROCEDURE]. 04 * Sec. 2. AS 25.27.062(b) is amended to read: 05 (b) An income withholding order must direct the obligor, the obligor's 06 employer, future employer, and any person, political subdivision, or department of the 07 state to withhold money due or to be due the obligor and pay the money to the agency 08 or to another person or entity specified in the withholding order, in an amount 09 determined under (i) of this section. 10 * Sec. 3. AS 25.27.062(c) is repealed and reenacted to read: 11 (c) Except as provided in (m) of this section, an income withholding order 12 must provide for immediate withholding without the need for amendment of the 13 support order involved or other action by the court or agency that issued the order 14 other than required under this section if 15 (1) the support order is being enforced by the agency and was issued 16 or modified after October 31, 1990; or 17 (2) the support order is not being enforced by the agency and was 18 issued or modified after December 31, 1993. 19 * Sec. 4. AS 25.27.062(d) is amended to read: 20 (d) Except when immediate income withholding is required under (c) of 21 this section, income withholding may be initiated under this subsection if (1) 22 support payments are in arrears in an amount at least equal to the support 23 payable for one month; (2) the obligor requests withholding; or (3) the obligee 24 requests withholding and the agency approves the request because the obligor's 25 payments have been more than 10 days overdue more than one time in the 26 preceding 12 months or there is reason to believe that the obligor might withdraw 27 assets to avoid payment of support. The agency shall serve notice of income 28 withholding under this subsection [IF AN APPLICATION IS FILED WITH THE 29 CLERK OF COURT, NOTICE SHALL BE SERVED] upon the obligor [BY THE 30 AGENCY] in the manner provided by Rule 5, Alaska Rules of Civil Procedure, or any 31 other method permitted by law. The notice must [SHALL] inform the obligor that
01 the income withholding order will take effect 15 days after the date on which the 02 notice is served unless the obligor requests a hearing within the 15 days after the 03 notice is served. If the obligor requests a hearing, an income withholding order may 04 not take effect until the conclusion of the hearing. The court or agency shall hold a 05 hearing requested under this subsection [SECTION] within 15 days after the date the 06 obligor requests the hearing [,] to determine if there is a mistake [ARE ANY 07 MISTAKES] of fact that makes [MAKE] the withholding order improper because [, 08 IF] the amount of current or overdue support [TO BE WITHHELD] is incorrect, the 09 identity of the obligor is inaccurate, or [IF] there are any other legal defenses. The 10 court or agency, as applicable, shall inform the obligor, either at the hearing or within 11 15 days after the hearing, whether or not the withholding will occur and of the date 12 on which it is to commence. It is not a defense to an order issued under (1) of this 13 subsection [SECTION] that less than one full month's payment is due if at least one 14 full month's payment was due on the date notice was served under this subsection 15 [SECTION]. 16 * Sec. 5. AS 25.27.062(e) is amended to read: 17 (e) The obligee or person or other entity [PUBLIC AGENCY] that obtains 18 an [REQUESTED THE] income withholding order shall immediately send a copy of 19 the income withholding order, a copy of AS 25.27.260 and this section, and an 20 explanation of the effect of the statutes by certified mail to persons who may owe 21 money to an obligor. An income withholding order made under this section is binding 22 upon a person, employer, political subdivision, or department of the state immediately 23 upon receipt of a copy of the income withholding order. An employer shall begin 24 withholding the specified amount from the employee's wages 14 days after the mailing 25 date on the notice of withholding or on the first day of the next pay period, if earlier. 26 The amount withheld shall be sent to the agency or other person or entity specified 27 in the order within 10 days after the date the employee is paid. An employer 28 may, for each payment made under the order, deduct $1 from other wages or 29 salary owed to the obligor. 30 * Sec. 6. AS 25.27.062(k) is repealed and reenacted to read: 31 (k) An employer who is withholding income of an employee under an order
01 issued under this section shall notify the agency promptly when the employee gives 02 or receives notice of termination of employment and provide to the court, agency, or 03 obligee the employee's last known home address and the name and address of the 04 employee's new employer, if known. 05 * Sec. 7. AS 25.27.062(l) is repealed and reenacted to read: 06 (l) Unless modified or terminated by the agency or the court, an order to 07 withhold income under this section remains in effect until the support order is satisfied. 08 Upon satisfaction of a support order, the agency shall notify all persons served with 09 the notice to withhold income. The agency or court may not terminate or modify an 10 income withholding order solely on the ground that the obligor has paid all arrearages. 11 * Sec. 8. AS 25.27.062 is amended by adding a new subsection to read: 12 (m) An income withholding order issued under (c) of this section is not subject 13 to immediate withholding if the obligor agrees to inform the court, agency, or obligee 14 of the obligor's current employer and the availability of employment-related health 15 insurance coverage and 16 (1) the court or agency has reviewed and approved a written agreement 17 between the obligor and the obligee that provides for an alternative arrangement for 18 immediate income withholding and withholding has not been terminated previously and 19 subsequently initiated; the agency must also be a party to an agreement under this 20 paragraph if support has been assigned to the state; or 21 (2) the obligor or obligee demonstrates and the court or agency finds 22 good cause not to require immediate income withholding because it would not be in 23 the best interests of the child and, in a case involving the modification of a support 24 order, the obligor has made voluntary support payments under a court or administrative 25 order and has not been in arrears in an amount equal to the support payable for one 26 month. 27 * Sec. 9. AS 25.27.140(b) is amended to read: 28 (b) If a support order has been entered, the agency may enforce the support 29 order utilizing the procedures prescribed in AS 25.27.062, 25.27.150, [AS 25.27.150] 30 and 25.27.230 - 25.27.270. 31 * Sec. 10. AS 25.27.160(b) is amended to read:
01 (b) The notice and finding of financial responsibility served under (a) of this 02 section must state 03 (1) the sum or periodic payments for which the alleged obligor is found 04 to be responsible, calculated by taking into consideration the need of the alleged 05 obligee, the alleged obligor's liability to the state under AS 25.27.130 if any, and the 06 duty of support under the law; 07 (2) the name of the alleged obligee and the obligee's custodian; 08 (3) that the alleged obligor may appear and show cause in a hearing 09 held by the agency why the finding is incorrect, should not be finally ordered, and 10 should be modified or rescinded, because 11 (A) no duty of support is owed; or 12 (B) the amount of support found to be owed is incorrect; 13 (4) that if the person served with the notice and finding of financial 14 responsibility does not request a hearing within 30 days, the property and income of 15 the person will be subject to execution and withholding under AS 25.27.062 and 16 25.27.230 - 25.27.270 [IN ACCORDANCE WITH AS 25.27.230 - 25.27.270] in the 17 amounts stated in the finding without further notice or hearing. 18 * Sec. 11. AS 25.27.170(f) is amended to read: 19 (f) If the alleged obligor requesting the hearing fails to appear at the hearing, 20 the hearing officer shall enter a decision declaring the property and income of the 21 alleged obligor subject to execution and withholding under AS 25.27.062 and 22 25.27.230 - 25.27.270 [IN ACCORDANCE WITH AS 25.27.230 - 25.27.270] in the 23 amounts stated in the notice and finding of financial responsibility. 24 * Sec. 12. AS 25.27.230(a) is amended to read: 25 (a) At the expiration of 30 days from either (1) the date of distribution of a 26 support order under AS 25.27.062(e) [SERVICE OF NOTICE UNDER 27 AS 25.27.150], or (2) the date of service of a notice and finding of financial 28 responsibility under AS 25.27.160, the agency may assert a lien upon the real or 29 personal property of the obligor, in the amount of the obligor's liability. 30 * Sec. 13. AS 25.27.230(c) is amended to read: 31 (c) The lien shall attach to all real and personal property of the obligor and be
01 effective on the date of recording of the lien with the recorder of the recording district 02 in which the property attached is located. A lien against earnings shall attach and be 03 effective upon filing with the recorder of the recording district in which the employer 04 does business or maintains an office or agent for the purpose of doing business. A 05 lien filed at the offices of the Commercial Fisheries Entry Commission in Juneau 06 against a limited entry permit issued under AS 16.43 is considered to have been 07 filed against the permit in all recording districts in which the permit holder uses 08 the permit. 09 * Sec. 14. AS 25.27.255(a) is amended to read: 10 (a) The agency shall pay to the obligee all money recovered by the agency 11 from the obligor under an income withholding order except for court costs and money 12 assigned to the agency under AS 25.27.120 - 25.27.130. However, if there is more 13 than one income withholding order under this chapter against an obligor, the 14 agency shall allocate amounts available for withholding in a manner that gives 15 priority to current support up to the limits imposed under 15 U.S.C. 1673(b) 16 (sec. 303(b), Consumer Credit Protection Act). Notwithstanding the priority given 17 to current support, the agency shall establish procedures for allocation of support 18 among obligees so that in no case will the allocation result in a withholding order 19 for one obligee not being implemented. 20 * Sec. 15. AS 25.27.070, 25.27.255(b), and 25.27.255(c) are repealed. 21 * Sec. 16. AS 25.27.062(c)(2), enacted by sec. 3 of this Act, takes effect January 1, 1994. 22 * Sec. 17. Except as provided in sec. 16 of this Act, this Act takes effect immediately under 23 AS 01.10.070(c).