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CSHB 300(JUD): "An Act relating to medical support orders for children; amending Rule 90.3, Alaska Rules of Civil Procedure; and providing for an effective date."

00CS FOR HOUSE BILL NO. 300(JUD) 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. The court or agency 10 shall allocate equally between the parents the cost of reasonable health care 11 expenses not covered by private insurance unless there is good cause to allocate 12 the costs unequally. One parent shall reimburse the other parent for the first 13 parent's share of the uncovered expenses paid by the parent within 30 days after 14 receipt by the first parent of the bill for the health care, payment verification, 15 and, if applicable, a health insurance statement indicating what portion of the cost 16 is uncovered. The medical support order must meet the requirements of 17 AS 25.27.063. Upon a showing of good cause , the court may order the parents 18 required to pay support to give reasonable security for payments. 19 * Sec. 8. AS 25.27.062(a) is amended to read: 20  (a) Unless the court or agency is establishing only a medical support order, 21 a [A] judgment, court order, or order of the agency under this chapter providing for 22 support must contain an income withholding order. Except as provided in (m) of this 23 section, the income withholding order must provide for immediate income withholding 24 if the support order is 25  (1) being enforced by the agency and was issued or modified on or 26 after July 8, 1994; or 27  (2) not being enforced by the agency and was issued on or after July 8, 28 1994. 29 * Sec. 9. AS 25.27.063(b) is amended to read: 30  (b) If a parent [AN OBLIGOR] who is required to provide health care 31 coverage under a medical support order is eligible for family health coverage through

01 an employer, the court or agency issuing the medical support order shall send a copy 02 of the medical support order to the employer. If the agency has notice that the parent 03 [OBLIGOR] has changed or will be changing employment and is or will be eligible 04 for family health coverage through the new employer, the agency shall send a copy of 05 the medical support order to the new employer. 06 * Sec. 10. AS 25.27.140(a) is amended to read: 07  (a) If a [NO] support order has not been entered, the agency may establish 08 paternity and a duty of support , which may include periodic payments of support, 09 a medical support order, or both, utilizing the procedures prescribed in 10 AS 25.27.160 - 25.27.220 and may enforce a duty of support utilizing the procedure 11 prescribed in AS 25.27.230 - 25.27.270. Action under this subsection may be 12 undertaken upon application of an obligee, or at the agency's own discretion if the 13 obligor is liable to the state under AS 25.27.120(a) or (b). 14 * Sec. 11. AS 25.27.140(c) is amended to read: 15  (c) Unless the agency is establishing only a medical support order, a [A] 16 decision of the agency determining a duty of support shall include an income 17 withholding order as provided under AS 25.27.062. 18 * Sec. 12. AS 25.27.160(b) is amended to read: 19  (b) Except as provided in (c) of this section, the [THE] notice and finding 20 of financial responsibility served under (a) of this section must state 21  (1) the sum or periodic payments for which the alleged obligor is found 22 to be responsible under this chapter; 23  (2) the name of the alleged obligee and the obligee's custodian; 24  (3) that the alleged obligor may appear and show cause in a hearing 25 held by the agency why the finding is incorrect, should not be finally ordered, and 26 should be modified or rescinded, because 27  (A) no duty of support is owed; or 28  (B) the amount of support found to be owed is incorrect; 29  (4) that, if the person served with the notice and finding of financial 30 responsibility does not request a hearing within 30 days, the property and income of 31 the person will be subject to execution under AS 25.27.062 and 25.27.230 - 25.27.270

01 in the amounts stated in the finding without further notice or hearing. 02 * Sec. 13. AS 25.27.160 is amended by adding a new subsection to read: 03  (c) If the agency is establishing only a medical support order, the notice and 04 finding of financial responsibility must state 05  (1) that health care insurance shall be provided for the child to whom 06 the duty of support is owed if health care insurance is available to the alleged obligor 07 at a reasonable cost and that the alleged obligor and the other parent shall share 08 equally the cost of the health care insurance and the costs of reasonable health care 09 expenses not covered by insurance; 10  (2) the name of the alleged obligee and the obligee's custodian; 11  (3) that the alleged obligor may appear and show cause in a hearing 12 held by the agency why the finding is incorrect, should not be finally ordered, and 13 should be modified or rescinded, because 14  (A) no duty of support is owed; 15  (B) health care insurance for the child is not available to the 16 alleged obligor at a reasonable cost; 17  (C) adequate health care is available to the child through the 18 Indian Health Service or other insurance coverage; or 19  (D) there is good cause to allocate the costs of health insurance 20 or uninsured health care expenses unequally between the parents; 21  (4) that, if the person served with the notice under this subsection does 22 not request a hearing within 30 days, a copy of the medical support order will be sent 23 to the person's employer under AS 25.27.063(b) without further notice or hearing for 24 inclusion of the child in family health coverage if it is available through the person's 25 employer. 26 * Sec. 14. AS 25.27.170(d) is amended to read: 27  (d) Except as provided in (g) of this section, the [THE] hearing officer shall 28 determine the amount of periodic payments necessary to satisfy the past, present, and 29 future liability of the alleged obligor under AS 25.27.120, if any, and under any duty 30 of support imposable under the law. The amount of periodic payments determined 31 under this subsection is not limited by the amount of any public assistance payment

01 made to or for the benefit of the child. 02 * Sec. 15. AS 25.27.170(f) is amended to read: 03  (f) Except as provided in (g) of this section, if [IF] the alleged obligor 04 requesting the hearing fails to appear at the hearing, the hearing officer shall enter a 05 decision declaring the property and income of the alleged obligor subject to execution 06 under AS 25.27.062 and 25.27.230 - 25.27.270 in the amounts stated in the notice and 07 finding of financial responsibility. 08 * Sec. 16. AS 25.27.170 is amended by adding a new subsection to read: 09  (g) If the agency is establishing only a medical support order, the hearing 10 officer shall enter a decision about the parents' respective responsibilities for the child's 11 health care expenses that complies with the requirements of AS 25.27.060(c). 12 * Sec. 17. AS 25.27.180(a) is amended to read: 13  (a) Within 20 days after the date of the hearing, the hearing officer shall adopt 14 findings and a decision determining whether paternity is established and whether a 15 duty of support exists , and, if a duty of support is found, the decision must specify 16  (1) unless a medical support order only is being established, the 17 amount of periodic payments or sum for which the alleged obligor is found to be 18 responsible ; and 19  (2) the parents' respective responsibilities for the costs of the child's 20 health care; this medical support order must be in compliance with 21 AS 25.27.060(c) . 22 * Sec. 18. AS 25.27.244(s)(6) is amended to read: 23  (6) "substantial compliance" regarding a support order or payment 24 schedule means that, with respect to periodic payments required under a support 25 order or a negotiated payment schedule under (g) of this section, whichever is 26 applicable, the obligor has 27  (A) no arrearage; 28  (B) an arrearage in an amount that is not more than four times 29 the monthly obligation under the support order or payment schedule; or 30  (C) been determined by a court to be making the best efforts 31 possible under the obligor's circumstances to have no arrearages under any

01 support order that requires periodic payments or under a negotiated payment 02 schedule relating to child support. 03 * Sec. 19. AS 25.27.246(n)(5) is amended to read: 04  (5) "substantial compliance" regarding a support order or payment 05 schedule means that, with respect to periodic payments required under a support 06 order or a negotiated payment schedule under (f) of this section, whichever is 07 applicable, the obligor has 08  (A) no arrearage; 09  (B) an arrearage in an amount that is not more than four times 10 the monthly obligation under the support order or payment schedule; or 11  (C) been determined by a court to be making the best efforts 12 possible under the obligor's circumstances to have no arrearages under any 13 support order that requires periodic payments or under a negotiated payment 14 schedule relating to child support. 15 * Sec. 20. AS 25.27.900(5) is amended to read: 16  (5) "duty of support" includes a duty of support imposed or imposable 17 by law, by a court order, decree, or judgment, or by a finding or decision rendered 18 under this chapter whether interlocutory or final, whether incidental to a proceeding 19 for divorce, legal separation, separate maintenance, or otherwise, and includes the duty 20 to pay arrearages of support past due and unpaid together with penalties and interest 21 on arrearages imposed under AS 25.27.020(a)(2)(B) and the duty to provide health 22 care coverage in compliance with AS 25.27.060(c) and 25.27.063 ; 23 * Sec. 21. AS 25.27.900(11) is amended to read: 24  (11) "support order" means any judgment, decree, or order that is 25 issued by a tribunal for the support and maintenance of a child or of a parent with 26 whom the child is living; "support order" includes a judgment, decree, or order 27  (A) on behalf of a child who has reached the age of majority 28 if the judgment, decree, or order was lawfully issued; and 29  (B) for any or all of the following: 30  (i) monetary support, including arrearages; 31  (ii) payment of health care costs or maintenance of

01 health insurance; 02  (iii) reimbursement of related costs; 03  (iv) payment of attorney fees and legal costs and other 04 fees; or [AND] 05  (v) penalty, interest, and other relief as required by a 06 tribunal; 07 * Sec. 22. AS 47.07.025(b) is amended to read: 08  (b) Through the child support enforcement agency or on its own behalf, the 09 department may garnish the wages, salary, or other employment income of a person 10 who 11  (1) is required by a medical support order under AS 25.27.060(c) 12 [AS 25.27.063] to provide coverage of the costs of medical care to a child who is 13 eligible for medical assistance under this chapter; 14  (2) has received payment from a third party for the costs of the 15 services; and 16  (3) has not used the payments to reimburse, as appropriate, the other 17 parent or custodian of the child, the provider of the services, or the department. 18 * Sec. 23. AS 25.27.063(a) is repealed. 19 * Sec. 24. The uncodified law of the State of Alaska is amended by adding a new section 20 to read: 21 INDIRECT AMENDMENT OF COURT RULE. This Act amends Rule 90.3, Alaska 22 Rules of Civil Procedure, by specifying that a medical support order may be issued even when 23 a support order for periodic monetary payments is not issued and by setting the requirements 24 for medical support orders. 25 * Sec. 25. This Act takes effect immediately under AS 01.10.070(c).