Introduced Version
SENATE BILL No. 153
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 12-17-2; IC 31-14-11; IC 31-15-7-10;
IC 31-16; IC 31-18-1-8; IC 31-33-1.5-8; IC 33-32-4; IC 33-37-5-6;
IC 34-30-2-144.3.
Synopsis: State central collection unit and child support. Establishes
the state central collection unit (unit) within the child support bureau
to collect and process noncash child support payments. Requires clerks
of court (clerks) to collect and process cash child support payments.
Deletes references to "other person" and "other governmental agency"
in statutes concerning the unit. Requires a party affected by a child
support order to notify the unit or a clerk of an address change.
Requires a person using income withholding to provide certain
information to the unit. Repeals a provision regarding noncash
payments of child support to clerks. Provides that the unit is not liable
for certain errors in the disbursement and collection of child support
payments. Provides the procedure the unit is to follow if the unit
improperly disburses a child support payment. Makes certain changes
concerning income withholding orders in enforcing dissolution of
marriage, legal separation, and child support decrees. Provides that a
collection agency that contracts with the child support bureau or a
prosecuting attorney may, in addition to the collection of arrearage on
a child support order, assess and collect from an obligor all fees,
charges, costs, and other expenses as provided under the contract.
Provides that an individual ordered to pay child support through
income withholding shall also pay the annual child support fee through
income withholding. Changes the support and maintenance fee to $26.
Makes technical corrections. (The introduced version of this bill was
prepared by the select committee on reorganization of child services.)
Effective: Upon passage; July 1, 2006.
Lawson C
January 9, 2006, read first time and referred to Committee on Judiciary.
Introduced
Second Regular Session 114th General Assembly (2006)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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SENATE BILL No. 153
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 12-17-2-18.5; (06)IN0153.1.1. -->
SECTION 1. IC 12-17-2-18.5, AS AMENDED BY P.L.234-2005,
SECTION 32, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2006]: Sec. 18.5. (a) The bureau shall establish a program to
allow a prosecuting attorney with which the bureau has contracted
under section 18 of this chapter to contract with a collection agency
licensed under IC 25-11 to provide child support enforcement services.
(b) The bureau shall:
(1) establish a list of approved collection agencies with which a
prosecuting attorney may contract under this section;
(2) establish requirements for participation in the program
established under this section to assure:
(A) effective administration of the plan; and
(B) compliance with all federal and state statutes, regulations,
and rules;
(3) update and review the list described in subdivision (1) and
forward a copy of the updated list to each prosecuting attorney
annually; and
(4) preapprove or approve all contracts between a collection
agency and a prosecuting attorney.
(c) A contract between a prosecuting attorney and a collection
agency under this section must include the following provisions:
(1) A provision that records of a contractor operated child support
enforcement system are subject to inspection and copying to the
same extent the records would be subject to inspection and
copying if the contractor were a public agency under IC 5-14-3.
(2) A provision that records that are provided by a contractor to
the prosecuting attorney that relate to compliance by the
contractor with the terms of the contract are subject to inspection
and copying in accordance with IC 5-14-3.
(d) Not later than July 1, 2006, the bureau shall provide the
legislative council with a report:
(1) evaluating the effectiveness of the program established under
this section; and
(2) evaluating the impact of arrearage reductions for child support
orders under which collection agencies have collected under
IC 12-17-2-18(c).
(e) The bureau is not liable for any costs related to a contract
entered into under this section that are disallowed for reimbursement
by the federal government under the Title IV-D program of the federal
Social Security Act.
(f) The bureau shall treat costs incurred by a prosecuting attorney
under this section as administrative costs of the prosecuting attorney.
(g) Contracts between a collection agency licensed under IC 25-11
and the bureau or a prosecuting attorney:
(1) must:
(A) be in writing;
(B) include:
(i) all fees, charges, and costs, including administrative and
application fees; and
(ii) the right of the bureau or the prosecuting attorney to
cancel the contract at any time;
(C) require the collection agency, upon the request of the
bureau or the prosecuting attorney, to provide the:
(i) source of each payment received for arrearage on a child
support order;
(ii) form of each payment received for arrearage on a child
support order;
(iii) amount and percentage that is deducted as a fee or a
charge from each payment of arrearage on a child support
order; and
(iv) amount of arrearage owed under a child support order;
and
(D) be one (1) year renewable contracts; and
(2) may be negotiable contingency contracts in which a collection
agency may not collect a fee that exceeds fifteen percent (15%)
of the arrearages collected per case.
(h) A collection agency that contracts with the bureau or a
prosecuting attorney under this section may, in addition to the
collection of arrearages on a child support order, assess and collect
from an obligor all fees, charges, costs, and other expenses as
provided under the terms of the contract described in subsection
(g).
SOURCE: IC 12-17-2-27; (06)IN0153.1.2. -->
SECTION 2. IC 12-17-2-27 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 27. (a) Each circuit
court clerk shall do the following:
(1) Before January 1, 2007, receive the support money assigned
to the state and paid under the terms of a court order in the clerk's
jurisdiction and pay the money to the Title IV-D agency within
the time limits established by P.L.93-647, as amended, and any
related regulations that are promulgated.
(2) Maintain all records concerning the payment or nonpayment
of support money that have been assigned to the state and transmit
the records to the Title IV-D agency upon request.
(3) Contract with the Title IV-D agency for the performance and
the remuneration for the performance of duties prescribed in this
section.
(b) Beginning January 1, 2007, for purposes of subsection (a)(1),
each circuit court clerk may accept only support money that is paid
in cash.
SOURCE: IC 12-17-2-28; (06)IN0153.1.3. -->
SECTION 3. IC 12-17-2-28 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 28. The amounts
appropriated for duties performed by prosecuting attorneys, circuit
court clerks, or other agents under this chapter shall be distributed
directly from the division. department of child services.
SOURCE: IC 31-14-11-2; (06)IN0153.1.4. -->
SECTION 4. IC 31-14-11-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2. (a) The court
may order either or both parents to pay any reasonable amount for child
support after considering all relevant factors, including the following:
(1) The financial resources of the custodial parent.
(2) The standard of living the child would have enjoyed had the
parents been married and remained married to each other.
(3) The physical and mental condition of the child.
(4) The child's educational needs.
(5) The financial resources and needs of the noncustodial parent.
(b) The court shall order a custodial parent or third party under
section 9 of this chapter who receives child support to obtain an
account at a financial institution unless:
(1) the custodial parent or third party files a written objection
before a child support order is issued; and
(2) the court finds that good cause exists to exempt the custodial
parent or third party from the account requirement.
A custodial parent or third party ordered to obtain an account shall
provide the clerk of the circuit court or other person or entity acting as
assignee or trustee for remittance and the state central collection unit
with an account number and any other information necessary to transfer
funds to the account.
(c) In accordance with its policies, a financial institution may
restrict or deny services to a person ordered to obtain an account under
this section.
(d) This section may not be construed to require the clerk of the
circuit court to remit child support payments by electronic funds
transfer.
SOURCE: IC 31-14-11-9; (06)IN0153.1.5. -->
SECTION 5. IC 31-14-11-9 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 9. The court may order
that support payments be made to any appropriate person. or agency.
SOURCE: IC 31-14-11-11; (06)IN0153.1.6. -->
SECTION 6. IC 31-14-11-11 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 11. (a) This subsection
applies before January 1, 2007. The court shall require that child
support payments be made through the clerk of the court or the child
support bureau under IC 12-17-2 as trustee for remittance to the person
entitled to receive the payments, unless the court has reasonable
grounds for providing or approving another method of payment.
(b) Beginning January 1, 2007, the court shall require that child
support payments:
(1) paid in cash be made through the clerk of the court; and
(2) paid by a noncash method be made through the state
central collection unit established by IC 31-33-1.5-8;
as trustee for remittance to the person entitled to receive the
payments.
SOURCE: IC 31-14-11-15; (06)IN0153.1.7. -->
SECTION 7. IC 31-14-11-15 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 15.
(a) A party
affected by a support order shall inform the clerk and the state
central collection unit established by IC 31-33-1.5-8 of any change
of address not more than fifteen (15) days after the party's address
is changed.
(b) At the time of the issuance or modification of a support order,
the parties affected by the order shall inform the clerk and the state
central collection unit established by IC 31-33-1.5-8 of:
(1) any change of address and any other conditions that may affect
the administration of the order;
(2) (1) whether any of the parties is receiving or has received
assistance under the:
(A) federal Aid to Families with Dependent Children program
(42 U.S.C. 601 et seq.); or
(B) federal Temporary Assistance to Needy Families
(TANF) program (45 CFR 265); and
(3) (2) the Social Security number of any child affected by the
order.
The Social Security number required under subdivision (3) (2) shall be
kept confidential and used only to carry out the purposes of the Title
IV-D program.
SOURCE: IC 31-15-7-10; (06)IN0153.1.8. -->
SECTION 8. IC 31-15-7-10 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 10. Notwithstanding
any other law, all orders and awards contained in a dissolution of
marriage decree or legal separation decree may be enforced by:
(1) contempt;
(2) assignment of wages or other income; an income withholding
order; or
(3) any other remedies available for the enforcement of a court
order;
except as otherwise provided by this article.
SOURCE: IC 31-16-9-1; (06)IN0153.1.9. -->
SECTION 9. IC 31-16-9-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 1. (a) This subsection
applies before January 1, 2007. Upon entering an order for support
in:
(1) a dissolution of marriage decree under IC 31-15-2;
(2) a legal separation decree under IC 31-15-3; or
(3) a child support decree under IC 31-16-2;
the court shall require that support payments be made through the clerk
of the circuit court as trustee for remittance to the person entitled to
receive payments, unless the court has reasonable grounds for
providing or approving another method of payment.
(b) Beginning January 1, 2007, except as provided in subsection
(c), upon entering an order for support in:
(1) a dissolution of marriage decree under IC 31-15-2;
(2) a legal separation decree under IC 31-15-3; or
(3) a child support decree under IC 31-16-2;
the court shall require that support payments be made through the
clerk of the circuit court or the state central collection unit
established by IC 31-33-1.5-8, as trustee for remittance to the
person entitled to receive payments, unless the court has
reasonable grounds for providing or approving another method of
payment.
(c) Beginning January 1, 2007, child support payments that are
paid in cash must be paid to a clerk of the circuit court, and all
noncash payments must be paid to the state central collection unit
established by IC 31-33-1.5-8.
SOURCE: IC 31-16-9-3; (06)IN0153.1.10. -->
SECTION 10. IC 31-16-9-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 3. (a) A party affected
by a support order shall inform the clerk and the state central
collection unit established by IC 31-33-1.5-8 of any change of
address not more than fifteen (15) days after the party's address is
changed.
(b) At the time of the issuance or modification of a support order,
the parties affected by the order shall inform the clerk of the court and
the state central collection unit established by IC 31-33-1.5-8 of:
(1) any change of address or other conditions that may affect the
administration of the order;
(2) (1) whether any of the parties is receiving or has received
assistance under the:
(A) federal Aid to Families with Dependent Children program
(42 U.S.C. 601 et seq.); or
(B) federal Temporary Assistance to Needy Families
(TANF) program (45 CFR 265); and
(3) (2) the Social Security number of any child affected by the
order.
The Social Security number required under subdivision (3) (2) shall be
kept confidential and used only to carry out the purposes of the Title
IV-D program.
SOURCE: IC 31-16-9-4; (06)IN0153.1.11. -->
SECTION 11. IC 31-16-9-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 4. The custodial parent
and the noncustodial parent shall furnish the following information to
the clerk of the court and the state central collection unit at the time
of the issuance or modification of a child support order:
(1) The parent's Social Security number.
(2) The name and address of the parent's employer.
SOURCE: IC 31-16-10-2; (06)IN0153.1.12. -->
SECTION 12. IC 31-16-10-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 2. (a) If the clerk of the
court or the state central collection unit is notified by the Title IV-D
agency or the agency's designee that:
(1) the child who is the beneficiary of a support order is receiving
assistance under the:
(A) federal Aid to Families with Dependent Children program
(42 U.S.C. 601 et seq.); or
(B) federal Temporary Assistance to Needy Families
(TANF) program (45 CFR 265); and
(2) an assignment of support rights in favor of the state is in effect
against the person obligated to make child support payments;
the clerk of the court or the state central collection unit shall forward
the child support payments directly to the Title IV-D agency without
further order of the court.
(b) The Title IV-D agency shall disburse the payments in
accordance with federal regulations governing the Title IV-D program.
SOURCE: IC 31-16-12-1; (06)IN0153.1.13. -->
SECTION 13. IC 31-16-12-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 1. Notwithstanding any
other law, all orders and awards contained in a child support decree or
an order directing a person to pay a child support arrearage may be
enforced by:
(1) contempt, including the provisions under section 6 of this
chapter;
(2) assignment of wages or other income; an income withholding
order; or
(3) any other remedies available for the enforcement of a court
order;
except as otherwise provided by IC 31-16-2 through IC 31-16-11 or
this chapter.
SOURCE: IC 31-16-15-1; (06)IN0153.1.14. -->
SECTION 14. IC 31-16-15-1, AS AMENDED BY P.L.234-2005,
SECTION 85, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 1. (a) In a proceeding under IC 31-14 or
IC 31-16-2 through IC 31-16-12 to establish, modify, or enforce a child
support order, the court shall:
(1) enter an order for immediate income withholding; and
(2) modify any previously issued income withholding order that
has not been activated under this chapter to provide for immediate
income withholding.
(b) The court shall issue the income withholding order to the income
payor not later than fifteen (15) calendar days after the court's
determination.
(c) The income withholding order must order income payors to send
to the state central collection unit or other person specified in the
support order under:
(1) IC 31-14-11-11;
(2) IC 31-16-4; or
(3) (2) IC 31-16-9; or
(3) IC 33-37-5-6;
the amount of income established by the court for child support at the
time the order for child support is established, enforced, or modified
and the annual fee required under IC 33-37-5-6.
(d) However, the court shall issue an income withholding order that
will not become activated except upon the occurrence of the two (2)
conditions described in section 2 of this chapter if:
(1) the parties submit a written agreement providing for an
alternative child support arrangement; or
(2) the court determines that good cause exists not to require
immediate income withholding.
(e) A finding of good cause under subsection (d)(2) must:
(1) be written; and
(2) include:
(A) all reasons why immediate income withholding is not in
the best interests of the child; and
(B) if the case involves a modification of support, a statement
that past support has been timely paid.
(f) The income withholding order must contain a statement that if
the withholding order is activated, income payors will be ordered to
send to the state central collection unit or other person specified in the
support order under:
(1) IC 31-14-11-11;
(2) IC 31-16-4; or
(3) (2) IC 31-16-9; or
(3) IC 33-37-5-6;
the amount of income established by the court for child support and
any support or maintenance fees or payments as required by
IC 33-37-5-6.
SOURCE: IC 31-16-15-4; (06)IN0153.1.15. -->
SECTION 15. IC 31-16-15-4, AS AMENDED BY P.L.234-2005,
SECTION 86, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 4. (a) This section applies to the
implementation of income withholding under an order issued under
sections 1 and 3 of this chapter.
(b) If the Title IV-D agency or the court becomes aware that the
obligor has an income payor to whom a notice has not been sent under
subsection (c) or an income payor to whom notice of delinquent
support has not been sent under subsection (c):
(1) the Title IV-D agency in a case arising under Title IV-D of the
federal Social Security Act (42 U.S.C. 651 through 669); or
(2) the court;
shall not later than fifteen (15) calendar days after becoming aware of
an income payor send a written notice to the income payor that the
withholding is binding on the income payor.
(c) The notice to an income payor under this section must contain
a statement of the following:
(1) That the income payor is required to withhold a certain
amount of income from the obligor.
(2) That the total amount to be withheld under court order by the
obligor's income payor from the obligor's income is the sum of:
(A) the obligor's current child support obligation;
(B) an amount to be applied toward the liquidation of any
arrearages; and
(C) an optional fee of two dollars ($2), which is payable to and
imposed at the option of the income payor, each time the
income payor forwards income to the state central collection
unit; or other person specified in the notice;
up to the maximum amount permitted under 15 U.S.C. 1673(b).
(3) That the income payor shall:
(A) forward the withheld income described in subdivision
(2)(A) and (2)(B) to the state central collection unit or other
person named in the notice at the same time that the obligor is
paid; and
(B) include a statement identifying:
(i) each the cause number for each payee;
(ii) the name of each obligor; and
(iii) the name of each payee with the withheld income
forwarded by the income payor;
(iv) the Social Security number of each obligor; and
(v) the Indiana support enforcement tracking system
(ISETS) number for each payee.
(4) That withholding is binding upon the income payor until
further notice from a Title IV-D agency.
(5) That the obligor may recover from the income payor in a civil
action an amount not less than one hundred dollars ($100) if the
income payor:
(A) discharges the obligor from employment;
(B) refuses the obligor employment; or
(C) disciplines the obligor;
solely because the income payor is required to forward income
under this chapter.
(6) That the income payor is liable for any amount that the income
payor fails to forward under this chapter.
(7) That withholding under this chapter has priority over any
secured or unsecured claim on income except claims for federal,
state, and local taxes.
(8) That, if the income payor is required to withhold income from
more than one (1) obligor, the income payor may:
(A) combine in a single payment the withheld amounts for all
obligors who have been ordered to pay the state central
collection unit;
or other governmental agency; and
(B) separately identify the part of the single payment that is
attributable to each individual obligor.
(9) That if:
(A) there is more than one (1) order for withholding against a
single obligor; and
(B) the obligor has insufficient disposable earnings to pay the
amount required by all the orders;
the income payor shall distribute the withheld earnings pro rata
among the entities entitled to receive earnings under the orders,
giving priority to a current support withholding order. The income
payor shall honor all withholdings to the extent that the total
amount withheld does not exceed the limits imposed under 15
U.S.C. 1673(b).
(10) That the income payor shall implement withholding not later
than the first pay date after fourteen (14) days following the date
the notice was received.
(11) That the income payor shall:
(A) notify:
(i) the Title IV-D agency if the Title IV-D agency gives the
notice under this section; or
(ii) the court if the court gives the notice under this section;
when the obligor ceases employment or no longer receives
income not later than ten (10) days after the employment or
income ceases; and
(B) provide:
(i) the obligor's last known address; and
(ii) the name and address of the obligor's new income payor,
if known.
SOURCE: IC 31-16-15-7; (06)IN0153.1.16. -->
SECTION 16. IC 31-16-15-7, AS AMENDED BY P.L.234-2005,
SECTION 87, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 7. (a) Whenever an income withholding order
is to be:
(1) activated in a case arising under section 5 of this chapter; or
(2) implemented by a Title IV-D agency under section 3 of this
chapter despite the absence of a withholding order in the support
order;
the Title IV-D agency shall send a written notice to the obligor.
(b) The notice required under subsection (a) must contain a
statement of the following:
(1) Whether the obligor is delinquent in the payment of child
support.
(2) The amount of child support, if any, that the obligor is in
arrears.
(3) That a certain amount of income is to be:
(A) withheld under court order or action by the Title IV-D
agency from the obligor's income; and
(B) forwarded to the state central collection unit or other
person named in the notice. with a statement identifying:
(i) the cause number for each payee;
(ii) the name of each obligor;
(iii) the name of each payee with the withheld income
forwarded by the income payor;
(iv) the Social Security number of each obligor; and
(v) the Indiana support enforcement tracking system
(ISETS) number for each payee.
(4) That the total amount to be withheld under court order or
action by the Title IV-D agency by the obligor's income payor
from the obligor's income is the sum of:
(A) the obligor's current monthly child support obligation;
(B) an amount to be applied toward the liquidation of any
arrearages; and
(C) an optional fee of two dollars ($2), which is payable to and
imposed at the option of the income payor, each time the
income payor forwards income to the clerk of the court or
other person specified in the notice state central collection
unit established by IC 31-33-1.5-8 to the income payor under
this chapter;
up to the maximum amount permitted under 15 U.S.C. 1673(b).
(5) That the provision for withholding applies to the receipt of any
current or subsequent income.
(6) That the only basis for contesting activation of income
withholding is a mistake of fact.
(7) That an obligor may contest the Title IV-D agency's
determination to activate income withholding by making written
application to the Title IV-D agency not later than twenty (20)
days after the date the notice is mailed.
(8) That if the obligor contests the Title IV-D agency's
determination to activate the income withholding order, the Title
IV-D agency shall schedule an administrative hearing.
(9) That if the obligor does not contest the Title IV-D agency's
determination to activate the income withholding order, the Title
IV-D agency will activate income withholding.
(10) That income withholding will continue until a court or the
Title IV-D agency terminates activation of income withholding.
SOURCE: IC 31-16-15-8; (06)IN0153.1.17. -->
SECTION 17. IC 31-16-15-8, AS AMENDED BY P.L.234-2005,
SECTION 88, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 8. (a) If a petition to activate an income
withholding order is filed under section 6(2) or 6(3) of this chapter, the
court shall set a date for a hearing on the petition that is not later than
twenty (20) days after the date the petition is filed. The court shall send
a summons and a written notice to the obligor. The notice must contain
a statement of the following:
(1) Whether the obligor is delinquent in the payment of child
support.
(2) The amount of child support, if any, that the obligor is in
arrears.
(3) That a certain amount for the payment of current and past due
child support is to be withheld each month from the obligor's
income and forwarded to the state central collection unit
or other
person named in the notice. established by IC 31-33-1.5-8.
(4) That the total amount to be withheld each month by the
obligor's income payor from the obligor's income is the sum of:
(A) the obligor's current monthly child support obligation;
(B) an amount to be applied toward the liquidation of any
arrearages; and
(C) an optional fee of two dollars ($2), which is payable to and
imposed at the option of the income payor, each time the
income payor forwards income to the state central collection
unit
or other person named in the notice; established by
IC 31-33-1.5-8;
up to the maximum amount permitted under 15 U.S.C. 1673(b).
(5) That the provision for withholding applies to receipt of any
current or subsequent income.
(6) That any of the following constitutes a basis for contesting the
withholding:
(A) A mistake of fact.
(B) The parties have submitted a written agreement providing
for an alternative child support arrangement.
(C) A court determines that good cause exists not to require
immediate income withholding.
(7) That income withholding will continue until the activation of
the income withholding order is terminated by the court.
(8) That if the obligor does not appear at the hearing, the court
will activate the income withholding order.
(b) If:
(1) the obligor does not appear at the hearing on the petition filed
under section 6(2) or 6(3) of this chapter; or
(2) the court grants the petition;
the court shall activate the income withholding order by mailing a
written notice to the income payor as provided in section 10 of this
chapter.
SOURCE: IC 31-16-15-10; (06)IN0153.1.18. -->
SECTION 18. IC 31-16-15-10, AS AMENDED BY P.L.234-2005,
SECTION 89, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 10. (a) To activate or implement an income
withholding order, in addition to the notice requirements imposed by
sections 7 and 8 of this chapter:
(1) the Title IV-D agency in a case arising under section 3 or 5 of
this chapter; or
(2) the court in a case arising under section 6 of this chapter;
shall mail a written notice to each income payor not later than fifteen
(15) calendar days after the issuance of the income withholding order.
(b) The notice to each income payor must contain a statement of the
following:
(1) That the income payor is required to withhold a certain
amount of income from the obligor.
(2) That the total amount to be withheld each month by the
obligor's income payor from the obligor's income is the sum of:
(A) the obligor's current monthly child support obligation;
(B) an amount to be applied toward the liquidation of any
arrearages; and
(C) an optional fee of two dollars ($2), which is payable to and
imposed at the option of the income payor, each time the
income payor forwards income to the state central collection
unit;
or other person named in the notice;
up to the maximum amount permitted under 15 U.S.C. 1673(b).
(3) That the income payor shall:
(A) forward the withheld income described in subdivision
(2)(A) and (2)(B) to the state central collection unit
or other
person named in the notice at the same time that the obligor is
paid; and
(B) include a statement identifying:
(i)
each the cause number
for each payee;
(ii) the Indiana support enforcement tracking system
(ISETS) case number
for each payee;
(iii) the name of each obligor;
(iv) the name of each payee with the withheld income
forwarded by the income payor; and
(v) the
obligor's Social Security number
of each obligor.
(4) That withholding is binding upon the income payor until
further notice.
(5) That the obligor may recover from the income payor in a civil
action an amount not less than one hundred dollars ($100) if the
income payor:
(A) discharges the obligor from employment;
(B) refuses the obligor employment; or
(C) disciplines the obligor;
because the income payor is required to forward income under
this chapter.
(6) That the income payor is liable for any amount that the income
payor fails to forward under this chapter.
(7) That withholding under this chapter has priority over any
secured or unsecured claim on income except claims for federal,
state, and local taxes.
(8) That, if the income payor is required to withhold income from
more than one (1) obligor, the income payor may:
(A) combine in a single payment the withheld amounts for all
obligors who have been ordered to pay the state central
collection unit;
or other governmental agency; and
(B) separately identify the part of the single payment that is
attributable to each individual obligor.
(9) That if:
(A) there is more than one (1) order for withholding against a
single obligor; and
(B) the obligor has insufficient disposable earnings to pay the
amount required by all the orders;
the income payor shall distribute the withheld earnings pro rata
among the entities entitled to receive earnings under the orders,
giving priority to a current support withholding order, and shall
honor all withholdings to the extent that the total amount withheld
does not exceed the limits imposed under 15 U.S.C. 1673(b).
(10) That the income payor shall implement withholding not later
than the first pay date after fourteen (14) days following the date
the notice was received.
(11) That the income payor shall:
(A) notify:
(i) the Title IV-D agency in a case arising under section 5 of
this chapter; or
(ii) the court in a case arising under section 1 or 6 of this
chapter;
when the obligor terminates employment or ceases to receive
other income not later than ten (10) days after termination; and
(B) provide:
(i) the obligor's last known address; and
(ii) the name and address of the obligor's new income payor
if known.
SOURCE: IC 31-16-15-15; (06)IN0153.1.19. -->
SECTION 19. IC 31-16-15-15, AS AMENDED BY P.L.234-2005,
SECTION 90, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 15. (a) An income payor that is required to
withhold income under this chapter shall:
(1) forward income withheld for the payment of current and past
due child support to the state central collection unit
or other
person named in the notice established by IC 31-33-1.5-8 at the
same time that the obligor is paid;
(2) include a statement identifying:
(A)
each the cause number
for each payee;
(B) the Indiana support enforcement tracking system (ISETS)
case number
for each payee;
(C) the name of each obligor and the obligor's Social Security
number; and
(D) the name of each payee with the withheld income
forwarded by the income payor; and
(3) implement withholding not later than the first pay date after
fourteen (14) days following the date the notice was received.
(b) The income payor may retain, in addition to the amount required
to be forwarded to the state central collection unit under subsection (a),
a fee of two dollars ($2) from the obligor's income each time the
income payor forwards income to the state central collection unit.
or
other person specified in the notice to an income payor under this
chapter. If the income payor elects to withhold the fee, the amount to
be withheld for the payment of current and past due child support must
be reduced accordingly if necessary to avoid exceeding the maximum
amount permitted to be withheld under 15 U.S.C. 1673(b).
SOURCE: IC 31-16-15-16; (06)IN0153.1.20. -->
SECTION 20. IC 31-16-15-16, AS AMENDED BY P.L.234-2005,
SECTION 91, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 16. (a) Except as provided in subsection (b),
if the income payor is required to withhold income from more than one
(1) obligor under this chapter, the income payor may:
(1) combine in a single payment the withheld amounts for all
obligors who have been ordered to pay to the state central
collection unit or other governmental agency; established by
IC 31-33-1.5-8; and
(2) separately identify the part of the single payment that is
attributable to each individual obligor.
(b) If the income payor:
(1) is required to withhold income from more than one (1) obligor
under this chapter; and
(2) employs more than fifty (50) employees;
the income payor shall make payments to the state central collection
unit established by IC 31-33-1.5-8 through electronic funds transfer
or through electronic or Internet access made available by the state
central collection unit.
(c) The department of child services shall assess a civil penalty of
twenty-five dollars ($25) per obligor per pay period against an income
payor that:
(1) is required to make a payment under subsection (b); and
(2) does not make the payment through electronic funds transfer
or other means described in subsection (b).
The department shall deposit the penalties into the state general fund.
SOURCE: IC 31-16-15-20; (06)IN0153.1.21. -->
SECTION 21. IC 31-16-15-20 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 20. (a) This subsection
applies before January 1, 2007. The clerk of the court shall:
(1) pay the income forwarded by the income payor to the person
entitled to receive child support payments; and
(2) maintain records to monitor and document the receipt and
payment of income under this chapter.
(b) Beginning January 1, 2007, the clerk of the court, for cash
payments, and the state central collection unit, for noncash
payments, shall:
(1) pay the income forwarded by the income payor to the
person entitled to receive child support payments; and
(2) maintain records to monitor and document the receipt and
payment of income under this chapter.
SOURCE: IC 31-16-19-1; (06)IN0153.1.22. -->
SECTION 22. IC 31-16-19-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 1. (a) If:
(1) an individual, by the terms of a court order or decree, is
ordered to pay support money to or for the dependent wife,
husband, father, or mother or child of the individual; and
(2) the:
(A) dependents are being supported in whole or in part by
public money; or
(B) parent of the dependents has sought the assistance of the
agency designated to administer Title IV-D of the federal
Social Security Act (42 U.S.C. 651 through 669);
the court shall order that the payment of the support money be made to
the clerk of the circuit court of the county in which the decree or order
is entered.
(b) If the support order is for a child:
(1) who qualifies for assistance under IC 12-14-1-1; or
(2) whose parent has sought the assistance of the agency
designated to administer Title IV-D of the federal Social Security
Act (42 U.S.C. 651 through 669);
the court shall order that the payment of the support be made to the
agency of state government designated to administer Title IV-D of the
federal Social Security Act (42 U.S.C. 651 through 669) in compliance
with the federal regulations established for the administration of Title
IV-D of the federal Social Security Act (42 U.S.C. 651 through 669).
(c) The order must contain:
(1) the date when the first support payment is to be made; and
(2) the frequency of the payments.
SOURCE: IC 31-16-19-2; (06)IN0153.1.23. -->
SECTION 23. IC 31-16-19-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 2. If the court enters a
decree or an order under section 1 section 1(a) of this chapter, the clerk
shall:
(1) immediately set up an appropriate account system in the case;
and
(2) maintain a continuous record of the payments to each account.
SOURCE: IC 31-16-21-1; (06)IN0153.1.24. -->
SECTION 24. IC 31-16-21-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 1. (a) Whenever in any
court proceeding an order is in force for
(1) the support and maintenance of the other party to the
proceeding,
or
(2) the support and maintenance of a child;
the individual required to pay the support shall pay the support.
(b) The clerk,
if the payment is in cash, or the state central
collection unit, for all other forms of payment, shall collect from the
individual, in addition to the payments, the fee specified in
IC 33-37-5-6.
(c) The clerk may collect any unpaid fee in a proceeding for
contempt.
SOURCE: IC 31-18-1-8; (06)IN0153.1.25. -->
SECTION 25. IC 31-18-1-8 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 8. "Income withholding
order" means an order or other legal process directed to an obligor's
income payor to withhold:
(1) support; and
(2) support fees and maintenance fees as described in
IC 33-37-5-6;
from the income of the obligor.
SOURCE: IC 31-33-1.5-8; (06)IN0153.1.26. -->
SECTION 26. IC 31-33-1.5-8, AS ADDED BY P.L.234-2005,
SECTION 95, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 8. (a) The child support bureau is created
within the department of child services. The bureau is charged with the
administration of Title IV-D of the federal Social Security Act.
(b) The state's plan for the administration of Title IV-D must comply
with all provisions of state law and with the federal statutes and
regulations governing the program.
(c) The state central collection unit is established within the
child support bureau. The unit shall collect all noncash child
support payments and process child support paid through income
withholding.
SOURCE: IC 33-32-4-5; (06)IN0153.1.27. -->
SECTION 27. IC 33-32-4-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 5. The
state central
collection unit is not liable and the clerk is not personally liable or
liable in the clerk's official capacity on the clerk's official bond for
funds received if the
state central collection unit or the clerk:
(1) through error or in accordance with the best information
available to the
state central collection unit or the clerk,
disbursed the funds to a person the
state central collection unit
or the clerk reasonably believed to be entitled to receive the
funds and to comply with a:
(A) child support order; or
(B) garnishment order;
(2) inappropriately disbursed or misapplied child support funds,
arising without the knowledge or approval of the
state central
collection unit or the clerk, that resulted from:
(A) an action by an employee of, or a consultant to, the
division of family and children; department of child services
or the Title IV-D agency;
(B) an ISETS technological error; or
(C) information generated by ISETS;
(3) disbursed funds that the state central collection unit or the
clerk reasonably believed were available for disbursement but that
were not actually available for disbursement;
(4) disbursed child support funds paid to the clerk central
collection unit by a personal check that was later dishonored by
a financial institution; and
(5) did not commit a criminal offense as a part of the
disbursement.
SOURCE: IC 33-32-4-6; (06)IN0153.1.28. -->
SECTION 28. IC 33-32-4-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 6. If the state central
collection unit or the clerk improperly disburses funds in the manner
described by section 5 of this chapter, the state central collection unit
or the clerk shall do the following:
(1) Deduct the amount of funds improperly disbursed from fees
collected under IC 33-37-5-6.
(2) Credit each account from which funds were improperly
disbursed with the amount of funds improperly disbursed under
section 5 of this chapter.
(3) Notify the prosecuting attorney of the county of:
(A) the amount of the improper disbursement;
(B) the person from whom the amount of the improper
disbursement should be collected; and
(C) any other information to assist the prosecuting attorney to
collect the amount of the improper disbursement.
(4) Record each action taken under this subsection on a form
prescribed by the state board of accounts.
SOURCE: IC 33-37-5-6; (06)IN0153.1.29. -->
SECTION 29. IC 33-37-5-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 6. (a) This section
applies to an action in which a final court order requires a person to pay
support or maintenance payments through the clerk
or the state
central collection unit.
(b) The clerk
or the state central collection unit shall collect a fee,
in addition to support and maintenance payments. The fee is
the
following:
(1) Twenty dollars ($20) for the calendar year in which the initial
order is entered, unless the first payment is due after June 30 of
that calendar year.
(2) Ten dollars ($10) for the calendar year in which the initial
order was entered, if the first payment is due after June 30 of that
calendar year.
(3) In each subsequent year in which the initial order or a
modified order is in effect, twenty dollars ($20) if the fee is paid
before February 1, or thirty dollars ($30) if paid after January 31.
twenty-six dollars ($26) for each calendar year. If an
individual is ordered to pay the fee for a partial year, the fee
shall be calculated at fifty cents ($.50) per week from the date
of the support order until the end of the calendar year. The
clerk shall collect this fee if the fee is paid in cash and the state
central collection unit shall collect this fee if paid in a noncash
method.
(c) The fee required under subsection (b) is due at the time that the
first support or maintenance payment for the calendar year in which the
fee must be paid is due.
(d) The clerk may not deduct the fee from a support or maintenance
payment.
(e) Except as provided under IC 33-32-4-6, IC 33-37-7-1(g), and
IC 33-37-7-2(g), the clerk shall forward the fee collected under this
section to the county auditor in accordance with IC 33-37-7-12(a).
(f) Income payors required to withhold income under
IC 31-16-15 shall pay the annual fee required by subsection (b)
through the income withholding procedures described in
IC 31-16-15-1.
SOURCE: IC 34-30-2-144.3; (06)IN0153.1.30. -->
SECTION 30. IC 34-30-2-144.3 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2006]: Sec. 144.3. IC 33-32-4-5 (Concerning
child support funds received and disbursed by the state central
collection unit or a court clerk).
SOURCE: IC 33-32-4-9; (06)IN0153.1.31. -->
SECTION 31. IC 33-32-4-9 IS REPEALED [EFFECTIVE JULY 1,
2006].
SOURCE: ; (06)IN0153.1.32. -->
SECTION 32.
An emergency is declared for this act.