Introduced Version
HOUSE BILL No. 1035
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 31-9-2; IC 31-16-22.
Synopsis: Regulation of child support collection companies. Provides
that a private child support collector: (1) may not charge an obligee a
fee that exceeds 25% of the support collected; (2) must set forth all fees
and costs in a written contract; and (3) must allow an obligee to review
and approve a proposed payment plan with an obligor.
Effective: July 1, 2004.
Summers
January 13, 2004, read first time and referred to Committee on Judiciary.
Introduced
Second Regular Session 113th General Assembly (2004)
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HOUSE BILL No. 1035
A BILL FOR AN ACT to amend the Indiana Code concerning
family law and juvenile law.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 31-9-2-85; (04)IN1035.1.1. -->
SECTION 1. IC 31-9-2-85 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 85. (a) "Obligee", for
purposes of IC 31-16-16 and IC 31-16-22, means a person who is
entitled to receive a payment under a support order.
(b) "Obligee" or "petitioner", for purposes of the Uniform Interstate
Family Support Act under IC 31-18, has the meaning set forth in
IC 31-18-1-14.
SOURCE: IC 31-9-2-86; (04)IN1035.1.2. -->
SECTION 2. IC 31-9-2-86 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 86. (a) "Obligor", for
purposes of IC 31-16-15, and IC 31-16-16, and IC 31-16-22, means an
individual who has been ordered by a court to pay child support.
(b) "Obligor" or "respondent", for purposes of the Uniform Interstate
Family Support Act under IC 31-18, has the meaning set forth in
IC 31-18-1-15.
SOURCE: IC 31-9-2-96.5; (04)IN1035.1.3. -->
SECTION 3. IC 31-9-2-96.5 IS ADDED TO THE INDIANA CODE
AS A
NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2004]:
Sec. 96.5. (a) "Private child support collector", for
purposes of IC 31-16-22, means an individual, a corporation, a
limited liability company, a partnership, or other legal entity that
enters into a contract with an obligee to collect delinquent child
support payments required by a support order.
(b) The term does not include:
(1) an attorney hired by an obligee to bring an action
described in IC 31-16-12-1;
(2) a Title IV-D agency; or
(3) a private organization that contracts with a prosecuting
attorney under IC 12-17-2-18.5.
SOURCE: IC 31-16-22; (04)IN1035.1.4. -->
SECTION 4. IC 31-16-22 IS ADDED TO THE INDIANA CODE
AS A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]:
Chapter 22. Private Child Support Collection
Sec. 1. (a) A private child support collector must set forth the
terms and conditions of a proposed agreement for the collection of
delinquent child support in a written contract. The contract must
include the following disclosures:
(1) The cost for the collection of delinquent child support by
a Title IV-D agency.
(2) All fees, charges, and costs, including administrative and
application fees.
(3) The right of the obligee to cancel the contract at any time.
(b) A private child support collector may not impose a charge
or a fee on an obligee for cancellation of a contract.
Sec. 2. A private child support collector may not impose a fee or
a charge on an obligee, including costs, for the collection of
delinquent child support that:
(1) exceeds twenty-five percent (25%) of the amount of
delinquent child support actually collected by the private
child support collector; or
(2) is collected by the obligee or by a person or entity
described in IC 31-9-2-96.5(b).
Sec. 3. A private child support collector that contracts with an
obligee for the collection of delinquent child support shall promptly
provide the obligee with the following information upon the
request of the obligee:
(1) The source of each payment received from the obligor.
(2) The form of each payment received from the obligor.
(3) The:
(A) amount; and
(B) percentage;
that is deducted as a fee or a charge from each payment of
delinquent child support.
(4) The amount of delinquent child support owed by the
obligor.
Sec. 4. (a) A proposed plan for the payment of delinquent child
support between a private child support collector and an obligor
must be:
(1) provided to the obligee in writing before the payment plan
may be executed; and
(2) approved by the obligee before the payment plan may be
executed.
(b) A proposed payment plan provided to an obligee under
subsection (a) must:
(1) compute the amount of time to pay the total amount of
delinquent child support under the terms of the proposed
payment plan; and
(2) be included in the written contract under section 1 of this
chapter, if available.
Sec. 5. A private child support collector who violates this
chapter commits a Class A infraction.