00 CS FOR HOUSE BILL NO. 300(HES)                                                                                        
01 "An Act relating to medical support orders for children; amending Rule 90.3,                                            
02 Alaska Rules of Civil Procedure; and providing for an effective date."                                                  
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                               
04    * Section 1.  AS 11.51.122(a) is amended to read:                                                                  
05  (a)  A person commits the crime of aiding the nonpayment of child support if                                          
06 the person                                                                                                              
07   (1)  knows that an obligor has a duty under an administrative or judicial                                            
08 order for  periodic  payment of child support  or for the provision of health care                                   
09 coverage for a child under a medical support order ; and                                                               
10   (2)  intentionally                                                                                                   
11   (A)  withholds information about the residence or employment                                                        
12 of the obligor when that information is requested by a child support                                                    
13 enforcement agency; [OR]                                                                                                
14   (B)  being an employer of the obligor, withholds information                                                       
01 about the eligibility of the obligor's children for coverage under the                                                  
02 employer's health insurance plan or about the cost of the coverage of the                                               
03 children under the plan when that information is requested by a child                                                   
04 support enforcement agency; or                                                                                          
05   (C)   participates in a commercial, business, or employment                                                        
06 arrangement with the obligor, knowing at the time that the arrangement is made                                          
07 that it will allow the obligor to avoid paying all or some of the support when                                          
08 it is due or to avoid having a lien placed on assets for the payment of                                                 
09 delinquent support; receipt of a substantial asset for less than fair market value                                      
10 from an obligor after the obligor's support order has been established                                                  
11 constitutes a rebuttable presumption that the person receiving the asset knew                                           
12 that the transfer would allow the obligor to avoid paying all or some of the                                            
13 support or to avoid having a lien placed on the asset.                                                                  
14    * Sec. 2.  AS 11.51.122(b) is amended to read:                                                                     
15  (b)  In a prosecution under  (a)(2)(B) and (C)  [(a)(2)(B)] of this section, it is                                  
16 a defense that the                                                                                                      
17   (1)  defendant did not intend to assist the obligor in the nonpayment of                                             
18 child support  or in the avoidance of a duty to provide health care coverage of a                                      
19 child ; or                                                                                                             
20   (2)  obligor did not intend to avoid paying child support  or to avoid                                              
21 providing health care coverage of a child .                                                                            
22    * Sec. 3.  AS 25.20.050(k) is amended to read:                                                                     
23  (k)  Upon the motion of the child support enforcement agency or another party                                         
24 in the action to establish paternity, the tribunal shall issue a temporary order for                                    
25 support of the child whose paternity is being determined.   The order may require                                      
26 periodic payments of support, health care coverage, or both.   The order shall be                                      
27 effective until the tribunal issues a final order on paternity and a permanent order for                                
28 support is issued or the tribunal dismisses the action.  The temporary order may only                                   
29 be issued if the tribunal finds clear and convincing evidence of the paternity of the                                   
30 putative father on the basis of the results of the genetic tests and other evidence                                     
31 admitted in the proceeding.                                                                                             
01    * Sec. 4.  AS 25.20.050(l) is amended to read:                                                                     
02  (l)  The tribunal shall consider a completed and signed form for acknowledging                                        
03 paternity that meets the requirements of AS 18.50.165(a) as a legal finding of paternity                                
04 for a child born out of wedlock.  For an acknowledgment signed on or after July 1,                                      
05 1997, the acknowledgment may only be withdrawn by the earlier of the following                                          
06 dates: (1) 60 days after the date that the person signed it, or (2) the date on which                                   
07 judicial or administrative procedures are initiated to establish child support  in the form                            
08 of periodic payments or health care coverage  for, or to determine paternity of, the                                   
09 child who is the subject of the acknowledgement.  After this time period has passed,                                    
10 the acknowledgment may only be contested in superior court on the basis of fraud,                                       
11 duress, or material mistake.  The parent wishing to contest the acknowledgment carries                                  
12 the burden of proof by a preponderance of the evidence.  Unless good cause is shown,                                    
13 the court may not stay child support or other legal responsibilities while the action to                                
14 contest the acknowledgment is pending.                                                                                  
15    * Sec. 5.  AS 25.24.210(e) is amended to read:                                                                     
16  (e)  If the petition is filed by both spouses under AS 25.24.200(a), the petition                                     
17 must state in detail the terms of the agreement between the spouses concerning the                                      
18 custody of children, child support  in terms of periodic payments and in terms of                                      
19 health care expenses , visitation, spousal maintenance and tax consequences, if any,                                   
20 and fair and just division of property, including retirement benefits.  Agreements on                                   
21 spousal maintenance and property division must fairly allocate the economic effect of                                   
22 dissolution and take into consideration the factors listed in AS 25.24.160(a)(2) and (4).                               
23 In addition, the petition must state                                                                                    
24   (1)  the respective occupations of the petitioners;                                                                  
25   (2)  the income, assets, and liabilities of the respective petitioners at the                                        
26 time of filing the petition;                                                                                            
27   (3)  the date and place of the marriage;                                                                             
28   (4)  the name, date of birth, and current marital, educational, and                                                  
29 custodial status of each child born of the marriage or adopted by the petitioners who                                   
30 is under the age of 19;                                                                                                 
31   (5)  whether the wife is pregnant;                                                                                   
01   (6)  whether either petitioner requires medical care or treatment;                                                   
02   (7)  whether any of the following has been issued or filed during the                                                
03 marriage by or regarding either spouse as defendant, participant, or respondent:                                        
04   (A)  a criminal charge of a crime involving domestic violence;                                                      
05   (B)  a protective order under AS 18.66.100 - 18.66.180;                                                             
06   (C)  injunctive relief under former AS 25.35.010 or 25.35.020;                                                      
07 or                                                                                                                      
08   (D)  a protective order issued in another jurisdiction and filed                                                    
09 with the court in this state under AS 18.66.140;                                                                        
10   (8)  whether either petitioner has received the advice of legal counsel                                              
11 regarding a divorce or dissolution;                                                                                     
12   (9)  other facts and circumstances that the petitioners believe should be                                            
13 considered;                                                                                                             
14   (10)  that the petition constitutes the entire agreement between the                                                 
15 petitioners; and                                                                                                        
16   (11)  any other relief sought by the petitioners.                                                                    
17    * Sec. 6.  AS 25.27.020(a) is amended to read:                                                                     
18  (a)  The agency shall                                                                                                 
19   (1)  seek enforcement of child support orders of the state in other                                                  
20 jurisdictions and shall obtain, enforce, and administer the orders in this state;                                       
21   (2)  adopt regulations to carry out the purposes of this chapter and                                                 
22 AS 25.25, including regulations that establish                                                                          
23   (A)  procedures for hearings conducted under AS 25.27.170 and                                                       
24 for administrative enforcement of support orders;                                                                       
25   (B)  subject to AS 25.27.025 and to federal law, a uniform rate                                                     
26 of interest on arrearages of support that shall be charged the obligor upon                                             
27 notice if child support payments are 10 or more days overdue or if payment is                                           
28 made by a check backed by insufficient funds; however, an obligor may not be                                            
29 charged interest on late payment of a child support obligation, other than a                                            
30 payment on arrearages, if the obligor is                                                                                
31   (i)  employed and income is being withheld from the                                                                
01 obligor's wages under an income withholding order;                                                                      
02   (ii)  receiving unemployment compensation and child                                                                
03 support obligations are being withheld from the obligor's unemployment                                                  
04 payments under AS 23.20.401; or                                                                                         
05   (iii)  receiving compensation for disabilities under                                                               
06 AS 23.30 and child support obligations are being withheld from the                                                      
07 obligor's compensation payments;                                                                                        
08   (C)  procedures for establishing and disestablishing paternity                                                      
09 under AS 25.27.165 and 25.27.166, including procedures for hearings; and                                                
10   (D)  procedures under which the agency shall enter into contracts                                                   
11 or agreements with financial institutions, including brokerage houses, insurance                                        
12 companies, and other companies providing individual investment, transaction,                                            
13 or deposit accounts, doing business in the state to develop and operate an                                              
14 automated data match system as required by 42 U.S.C. 666(a)(17); the agency                                             
15 may pay a reasonable fee to a financial institution for conducting a data match                                         
16 under a contract or agreement under this subparagraph; the fee may not exceed                                           
17 the actual costs incurred by the financial institution for conducting the data                                          
18 match;                                                                                                                  
19   (3)  administer and enforce AS 25.25 (Uniform Interstate Family                                                      
20 Support Act);                                                                                                           
21   (4)  establish, enforce, and administer child support obligations                                                    
22 administratively under this chapter;                                                                                    
23   (5)  administer the state plan required under 42 U.S.C. 651 - 669 (Title                                             
24 IV-D, Social Security Act) as amended;                                                                                  
25   (6)  disburse support payments collected by the agency to the obligee,                                               
26 together with interest charged under (2) (B) of this subsection;                                                        
27   (7)  establish and enforce administratively under this chapter, or through                                           
28 the superior courts of the state, child support orders from other jurisdictions pertaining                              
29 to obligors within the state;                                                                                           
30   (8)  enforce and administer spousal support orders if a spousal support                                              
31 obligation has been established with respect to the spouse and if the support obligation                                
01 established with respect to the child of that spouse is also being administered; and                                    
02   (9)  obtain a medical support order  that meets  [AS PART OF A CHILD                                               
03 SUPPORT ORDER IF HEALTH CARE COVERAGE IS AVAILABLE TO THE                                                               
04 OBLIGOR AT A REASONABLE COST; THE AGENCY SHALL CONSIDER                                                                 
05 WHETHER ADEQUATE HEALTH CARE IS AVAILABLE TO THE CHILD                                                                  
06 THROUGH THE INDIAN HEALTH SERVICE OR OTHER INSURANCE                                                                    
07 COVERAGE BEFORE IT ORDERS AN OBLIGOR TO PROVIDE HEALTH CARE                                                             
08 COVERAGE THROUGH INSURANCE OR OTHER MEANS; THE MEDICAL                                                                  
09 SUPPORT ORDER MUST MEET] the requirements of AS  25.27.060(c) and                                                     
10 25.27.063;                                                                                                              
11   (10)  act on behalf of the Department of Health and Social Services in                                               
12 the enforcement of AS 47.07.025(b);                                                                                     
13   (11)  establish or disestablish, administratively under AS 25.27.165 -                                               
14 25.27.166 or through court action, the paternity of a child;                                                            
15   (12)  promptly provide to the Bureau of Vital Statistics, in a format                                                
16 approved by the bureau, any final agency decision administratively establishing or                                      
17 disestablishing the paternity of a child born in this state; and                                                        
18   (13)  act as the central registry for all child support orders and exchange                                          
19 information as required by federal law.                                                                                 
20    * Sec. 7.  AS 25.27.060(c) is amended to read:                                                                     
21  (c)  In a court  or administrative  proceeding where the support of a minor child                                   
22 is at issue, the court  or agency, as applicable,  may order either or both parents to pay                            
23 the amount necessary for support, maintenance, nurture, and education of the child.                                     
24  Regardless of whether a support order for periodic payments is issued, the  [THE]                                    
25 court  or agency  shall issue a medical support order .  The medical support order                                   
26 shall require health care insurance coverage for the child  [AS PART OF A CHILD                                        
27 SUPPORT ORDER] if health care  insurance  coverage is available to  either parent                                    
28 for the child  [THE OBLIGOR] at a reasonable cost.  The court  or agency  shall                                      
29 consider whether the child is eligible for services through the Indian Health Service                                   
30 or other insurance coverage before ordering  either parent  [THE OBLIGOR] to                                          
31 provide health care coverage through insurance or other means.   The court or agency                                   
01 shall allocate equally the cost of health care insurance for the child between the                                      
02 parents unless there is good cause to allocate the costs unequally.  If the obligor                                     
03 has the duty to make periodic payments for non-medical child support, the                                               
04 obligor's periodic payments shall be decreased by the amount of the other                                               
05 parent's portion of payments for health insurance ordered by the court or agency                                        
06 and actually paid by the obligor.  If the obligor has a duty to make periodic                                           
07 payments for non-medical child support, the periodic payments shall be increased                                        
08 by the obligor's portion of payments for health insurance if the other parent is                                        
09 ordered to and actually does obtain and pay for insurance.  Except as otherwise                                         
10 provided in this subsection for uncovered expenses exceeding $5,000, the court or                                       
11 agency shall allocate equally between the parents the cost of reasonable health                                         
12 care expenses not covered by private insurance or government assistance unless                                          
13 there is good cause to allocate the costs unequally.  One parent shall reimburse                                        
14 the other parent for the first parent's share of the uncovered expenses paid by the                                     
15 parent within 30 days after receipt by the first parent of the bill for the health                                      
16 care, payment verification, and, if applicable, a health insurance statement                                            
17 indicating what portion of the cost is uncovered.  Reasonable, uncovered expenses                                       
18 exceeding $5,000 in a calendar year shall be allocated based on the parents'                                            
19 relative financial circumstances when the expenses occur, as determined by the                                          
20 court or agency.   The medical support order must meet the requirements of                                             
21 AS 25.27.063.  Upon a showing of good cause ,  the court may order the parents                                        
22 required to pay support to give reasonable security for payments.                                                       
23    * Sec. 8.  AS 25.27.062(a) is amended to read:                                                                     
24  (a)  Unless the court or agency is establishing only a medical support order,                                        
25 a  [A] judgment, court order, or order of the agency under this chapter providing for                                  
26 support must contain an income withholding order.  Except as provided in (m) of this                                    
27 section, the income withholding order must provide for immediate income withholding                                     
28 if the support order is                                                                                                 
29   (1)  being enforced by the agency and was issued or modified on or                                                   
30 after July 8, 1994; or                                                                                                  
31   (2)  not being enforced by the agency and was issued on or after July 8,                                             
01 1994.                                                                                                                   
02    * Sec. 9.  AS 25.27.063(b) is amended to read:                                                                     
03  (b)  If  a parent  [AN OBLIGOR] who is required to provide health care                                              
04 coverage under a medical support order is eligible for family health coverage through                                   
05 an employer, the court or agency issuing the medical support order shall send a copy                                    
06 of the medical support order to the employer.  If the agency has notice that the  parent                              
07 [OBLIGOR] has changed or will be changing employment and is or will be eligible                                         
08 for family health coverage through the new employer, the agency shall send a copy of                                    
09 the medical support order to the new employer.                                                                          
10    * Sec. 10.  AS 25.27.140(a) is amended to read:                                                                    
11  (a)  If  a  [NO] support order has  not  been entered, the agency may establish                                   
12 paternity and a duty of support , which may include periodic payments of support,                                      
13 a medical support order, or both,  utilizing the procedures prescribed in                                              
14 AS 25.27.160 - 25.27.220 and may enforce a duty of support utilizing the procedure                                      
15 prescribed in AS 25.27.230 - 25.27.270.  Action under this subsection may be                                            
16 undertaken upon application of an obligee, or at the agency's own discretion if the                                     
17 obligor is liable to the state under AS 25.27.120(a) or (b).                                                            
18    * Sec. 11.  AS 25.27.140(c) is amended to read:                                                                    
19  (c)  Unless the agency is establishing only a medical support order, a  [A]                                         
20 decision of the agency determining a duty of support shall include an income                                            
21 withholding order as provided under AS 25.27.062.                                                                       
22    * Sec. 12.  AS 25.27.160(b) is amended to read:                                                                    
23  (b)  Except as provided in (c) of this section, the  [THE] notice and finding                                       
24 of financial responsibility served under (a) of this section must state                                                 
25   (1)  the sum or periodic payments for which the alleged obligor is found                                             
26 to be responsible under this chapter;                                                                                   
27   (2)  the name of the alleged obligee and the obligee's custodian;                                                    
28   (3)  that the alleged obligor may appear and show cause in a hearing                                                 
29 held by the agency why the finding is incorrect, should not be finally ordered, and                                     
30 should be modified or rescinded, because                                                                                
31   (A)  no duty of support is owed; or                                                                                 
01   (B)  the amount of support found to be owed is incorrect;                                                           
02   (4)  that, if the person served with the notice and finding of financial                                             
03 responsibility does not request a hearing within 30 days, the property and income of                                    
04 the person will be subject to execution under AS 25.27.062 and 25.27.230 - 25.27.270                                    
05 in the amounts stated in the finding without further notice or hearing.                                                 
06    * Sec. 13.  AS 25.27.160 is amended by adding a new subsection to read:                                            
07  (c)  If the agency is establishing only a medical support order, the notice and                                       
08 finding of financial responsibility must state                                                                          
09   (1)  that health care insurance shall be provided for the child to whom                                              
10 the duty of support is owed if health care insurance is available to the alleged obligor                                
11 at a reasonable cost and that the alleged obligor and the other parent shall share                                      
12 equally the cost of the health care insurance and the costs of reasonable health care                                   
13 expenses not covered by insurance;                                                                                      
14   (2)  the name of the alleged obligee and the obligee's custodian;                                                    
15   (3)  that the alleged obligor may appear and show cause in a hearing                                                 
16 held by the agency why the finding is incorrect, should not be finally ordered, and                                     
17 should be modified or rescinded, because                                                                                
18   (A)  no duty of support is owed;                                                                                    
19   (B)  health care insurance for the child is not available to the                                                    
20 alleged obligor at a reasonable cost;                                                                                   
21   (C)  adequate health care is available to the child through the                                                     
22 Indian Health Service or other insurance coverage; or                                                                   
23   (D)  there is good cause to allocate the costs of health insurance                                                  
24 or uninsured health care expenses unequally between the parents;                                                        
25   (4)  that, if the person served with the notice under this subsection does                                           
26 not request a hearing within 30 days, a copy of the medical support order will be sent                                  
27 to the person's employer under AS 25.27.063(b) without further notice or hearing for                                    
28 inclusion of the child in family health coverage if it is available through the person's                                
29 employer.                                                                                                               
30    * Sec. 14.  AS 25.27.170(d) is amended to read:                                                                    
31  (d)  Except as provided in (g) of this section, the  [THE] hearing officer shall                                    
01 determine the amount of periodic payments necessary to satisfy the past, present, and                                   
02 future liability of the alleged obligor under AS 25.27.120, if any, and under any duty                                  
03 of support imposable under the law.  The amount of periodic payments determined                                         
04 under this subsection is not limited by the amount of any public assistance payment                                     
05 made to or for the benefit of the child.                                                                                
06    * Sec. 15.  AS 25.27.170(f) is amended to read:                                                                    
07  (f)  Except as provided in (g) of this section, if  [IF] the alleged obligor                                        
08 requesting the hearing fails to appear at the hearing, the hearing officer shall enter a                                
09 decision declaring the property and income of the alleged obligor subject to execution                                  
10 under AS 25.27.062 and 25.27.230 - 25.27.270 in the amounts stated in the notice and                                    
11 finding of financial responsibility.                                                                                    
12    * Sec. 16.  AS 25.27.170 is amended by adding a new subsection to read:                                            
13  (g)  If the agency is establishing only a medical support order, the hearing                                          
14 officer shall enter a decision about the parents' respective responsibilities for the child's                           
15 health care expenses that complies with the requirements of AS 25.27.060(c).                                            
16    * Sec. 17.  AS 25.27.180(a) is amended to read:                                                                    
17  (a)  Within 20 days after the date of the hearing, the hearing officer shall adopt                                    
18 findings and a decision determining whether paternity is established and whether a                                      
19 duty of support exists ,  and, if a duty of support is found,  the decision must specify                             
20   (1)  unless a medical support order only is being established,  the                                                 
21 amount of periodic payments or sum for which the alleged obligor is found to be                                         
22 responsible ; and                                                                                                      
23   (2)  the parents' respective responsibilities for the costs of the child's                                           
24 health care; this medical support order must be in compliance with                                                      
25 AS 25.27.060(c) .                                                                                                      
26    * Sec. 18.  AS 25.27.244(s)(6) is amended to read:                                                                 
27   (6)  "substantial compliance" regarding a support order or payment                                                   
28 schedule means that, with respect to  periodic payments required under  a support                                     
29 order or a negotiated payment schedule under (g) of this section, whichever is                                          
30 applicable, the obligor has                                                                                             
31   (A)  no arrearage;                                                                                                  
01   (B)  an arrearage in an amount that is not more than four times                                                     
02 the monthly obligation under the support order or payment schedule; or                                                  
03   (C)  been determined by a court to be making the best efforts                                                       
04 possible under the obligor's circumstances to have no arrearages under any                                              
05 support order  that requires periodic payments  or  under a  negotiated payment                                     
06 schedule relating to child support.                                                                                     
07    * Sec. 19.  AS 25.27.246(n)(5) is amended to read:                                                                 
08   (5)  "substantial compliance" regarding a support order or payment                                                   
09 schedule means that, with respect to  periodic payments required under  a support                                     
10 order or a negotiated payment schedule under (f) of this section, whichever is                                          
11 applicable, the obligor has                                                                                             
12   (A)  no arrearage;                                                                                                  
13   (B)  an arrearage in an amount that is not more than four times                                                     
14 the monthly obligation under the support order or payment schedule; or                                                  
15   (C)  been determined by a court to be making the best efforts                                                       
16 possible under the obligor's circumstances to have no arrearages under any                                              
17 support order  that requires periodic payments  or  under a  negotiated payment                                     
18 schedule relating to child support.                                                                                     
19    * Sec. 20.  AS 25.27.900(5) is amended to read:                                                                    
20   (5)  "duty of support" includes a duty of support imposed or imposable                                               
21 by law, by a court order, decree, or judgment, or by a finding or decision rendered                                     
22 under this chapter whether interlocutory or final, whether incidental to a proceeding                                   
23 for divorce, legal separation, separate maintenance, or otherwise, and includes the duty                                
24 to pay arrearages of support past due and unpaid together with penalties and interest                                   
25 on arrearages imposed under AS 25.27.020(a)(2)(B)  and the duty to provide health                                      
26 care coverage in compliance with AS 25.27.060(c) and 25.27.063 ;                                                       
27    * Sec. 21.  AS 25.27.900(11) is amended to read:                                                                   
28   (11)  "support order" means any judgment, decree, or order that is                                                   
29 issued by a tribunal for the support and maintenance of a child or of a parent with                                     
30 whom the child is living; "support order" includes a judgment, decree, or order                                         
31   (A)  on behalf of a child who has reached the age of majority                                                       
01 if the judgment, decree, or order was lawfully issued; and                                                              
02   (B)  for  any or all of the following:                                                                            
03   (i)  monetary support, including arrearages;                                                                       
04   (ii)  payment of health care costs or maintenance of                                                               
05 health insurance;                                                                                                       
06   (iii)  reimbursement of related costs;                                                                             
07   (iv)  payment of attorney fees and legal costs and other                                                           
08 fees;  or  [AND]                                                                                                      
09   (v)  penalty, interest, and other relief as required by a                                                          
10 tribunal;                                                                                                               
11    * Sec. 22.  AS 47.07.025(b) is amended to read:                                                                    
12  (b)  Through the child support enforcement agency or on its own behalf, the                                           
13 department may garnish the wages, salary, or other employment income of a person                                        
14 who                                                                                                                     
15   (1)  is required by a medical support order under  AS 25.27.060(c)                                                 
16 [AS 25.27.063] to provide coverage of the costs of medical care to a child who is                                       
17 eligible for medical assistance under this chapter;                                                                     
18   (2)  has received payment from a third party for the costs of the                                                    
19 services; and                                                                                                           
20   (3)  has not used the payments to reimburse, as appropriate, the other                                               
21 parent or custodian of the child, the provider of the services, or the department.                                      
22    * Sec. 23.  AS 25.27.063(a) is repealed.                                                                           
23    * Sec. 24.  The uncodified law of the State of Alaska is amended by adding a new section                           
24 to read:                                                                                                                
25  INDIRECT AMENDMENT OF COURT RULE.  This Act amends Rule 90.3, Alaska                                                   
26 Rules of Civil Procedure, by specifying that a medical support order may be issued even when                            
27 a support order for periodic monetary payments is not issued and by setting the requirements                            
28 for medical support orders.                                                                                             
29    * Sec. 25.  This Act takes effect immediately under AS 01.10.070(c).