CSHB 428(FIN): "An Act relating to interest on child support overpayments that are disbursed to the obligor."
00CS FOR HOUSE BILL NO. 428(FIN) 01 "An Act relating to interest on child support overpayments that are disbursed to 02 the obligor." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 25.27.062(l) is amended to read: 05 (l) Unless modified or terminated by the agency or the court, an order to 06 withhold income under this chapter remains in effect, except as provided in (k) of this 07 section, until the support order is satisfied. The agency or court may not terminate or 08 modify an income withholding order solely on the ground that the obligor has paid all 09 arrearages. Upon satisfaction of a support order, if the order is 10 (1) being enforced by the agency, the agency shall, within 15 working 11 days, notify all persons served by the agency with the income withholding order that 12 withholding is no longer required; if the agency receives money from an obligor under 13 an income withholding order after the underlying support order has been satisfied and 14 the agency was enforcing the support order at the time it became satisfied, the agency
01 shall immediately return the overpayment to the obligor; if the agency fails to return 02 an overpayment as required under this paragraph, the state is liable to the obligor for 03 the amount of the overpayment, plus interest at the rate of six percent a year 04 [IMPOSED UNDER AS 43.05.225], and a person to whom the agency erroneously 05 disbursed the overpayment is liable to the state for the amount disbursed, plus interest 06 at the rate of six percent a year [IMPOSED UNDER AS 43.05.225]; 07 (2) not being enforced by the agency, the obligor shall file a motion 08 in court requesting termination of the withholding order and serve the motion on the 09 obligee; the court shall enter an order terminating the withholding order if the court 10 determines that the support order has been satisfied; the obligor may deliver a copy 11 of the termination order to persons who were served with the income withholding 12 order; when a termination order is entered, the obligee shall, upon request of the 13 obligor, notify the obligor of all persons who have been served with the income 14 withholding order by the obligee. 15 * Sec. 2. AS 25.27 is amended by adding a new section to read: 16 Sec. 25.27.320. Interest on agency return of certain overpayments. (a) If 17 the agency disburses money to an obligor because the agency made an error and 18 mistakenly required the obligor to overpay under a support order enforced by the 19 agency, the agency shall include interest with the disbursement at the rate of six 20 percent a year. The interest accrues from the date the payment at issue was received 21 by the agency, regardless of when the payment is determined to be an overpayment. 22 (b) The provisions of (a) of this section do not apply to situations where the 23 agency is ordered by a court to return money to an obligor based on the obligor's being 24 the prevailing party in a court action. 25 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section 26 to read: 27 APPLICABILITY. This Act applies to disbursements to an obligor on or after the 28 effective date of this Act.