Senate Bill sb1272

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    Florida Senate - 2002                                  SB 1272

    By Senator Peaden





    1-1041A-02

  1                      A bill to be entitled

  2         An act relating to the determination and

  3         enforcement of obligations for child support;

  4         amending s. 61.046, F.S.; defining the term

  5         "national medical support notice"; amending s.

  6         61.13, F.S.; requiring that the court issue an

  7         order for health care coverage for a minor

  8         child in a proceeding for dissolution of

  9         marriage rather than an order for health

10         insurance; providing for enforcement of such an

11         order through use of the national medical

12         support notice; requiring the Department of

13         Revenue to notify the obligor of withholding

14         premium payments under the notice; providing a

15         procedure under which the obligor may contest

16         the withholding; providing procedures for

17         enrolling a child in a group health plan;

18         providing certain limitations on the amount of

19         withholding allowed under a support order;

20         amending ss. 61.14, 61.30, F.S.; requiring that

21         the Department of Revenue seek modification of

22         certain awards of child support; requiring that

23         such modification be made without proof or

24         showing of a change in circumstances; amending

25         s. 409.25656, F.S.; providing a procedure for

26         liquidating securities that are levied to

27         satisfy an obligation for past due or overdue

28         support; amending s. 409.25658, F.S.; providing

29         for the use of unclaimed property to satisfy an

30         obligation for past due support; amending s.

31         409.2576, F.S.; requiring that the Department

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  1         of Revenue transmit a national medical support

  2         notice to an employee's employer under certain

  3         circumstances; providing an effective date.

  4

  5  Be It Enacted by the Legislature of the State of Florida:

  6

  7         Section 1.  Effective July 1, 2002, present subsections

  8  (10), (11), (12), (13), (14), (15), (16), (17), (18), and (19)

  9  of section 61.046, Florida Statutes, are redesignated as

10  subsections (11), (12), (13), (14), (15), (16), (17), (18),

11  (19), and (20), respectively, and a new subsection (10) is

12  added to that section to read:

13         61.046  Definitions.--As used in this chapter:

14         (10)  "National medical support notice" means the

15  notice required under 42 U.S.C. s. 666(a)(19).

16         Section 2.  Effective July 1, 2002, paragraph (b) of

17  subsection (1) of section 61.13, Florida Statutes, is amended

18  to read:

19         61.13  Custody and support of children; visitation

20  rights; power of court in making orders.--

21         (1)

22         (b)  Each order for child support shall contain a

23  provision for health care coverage insurance for the minor

24  child when the coverage insurance is reasonably available.

25  Coverage Insurance is reasonably available if either the

26  obligor or obligee has access at a reasonable rate to a group

27  health plan group insurance.  The court may require the

28  obligor either to provide health care insurance coverage or to

29  reimburse the obligee for the cost of health care insurance

30  coverage for the minor child when coverage is provided by the

31  obligee.  In either event, the court shall apportion the cost

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  1  of coverage, and any noncovered medical, dental, and

  2  prescription medication expenses of the child, to both parties

  3  by adding the cost to the basic obligation determined pursuant

  4  to s. 61.30(6). The court may order that payment of uncovered

  5  medical, dental, and prescription medication expenses of the

  6  minor child be made directly to the obligee payee on a

  7  percentage basis.

  8         1.  In a non-Title IV-D case, a copy of the court order

  9  for health care insurance coverage shall be served on the

10  obligor's payor or union or employer by the obligee or the

11  IV-D agency when the following conditions are met:

12         a.  The obligor fails to provide written proof to the

13  obligee or the IV-D agency within 30 days after of receiving

14  effective notice of the court order, that the health care

15  coverage insurance has been obtained or that application for

16  coverage insurability has been made;

17         b.  The obligee or IV-D agency serves written notice of

18  its intent to enforce an order for health care coverage

19  medical support on the obligor by mail at the obligor's last

20  known address; and

21         c.  The obligor fails within 15 days after the mailing

22  of the notice to provide written proof to the obligee or the

23  IV-D agency that the health care insurance coverage existed as

24  of the date of mailing.

25         2.a.  A support order enforced under Title IV-D of the

26  Social Security Act which requires that the obligor provide

27  health care coverage is enforceable by the department through

28  the use of the national medical support notice and an

29  amendment to the support order is not required. The department

30  shall transfer the national medical support notice to the

31  obligor's union or employer. The department shall notify the

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  1  obligor in writing that the notice has been sent to the

  2  obligor's union or employer and the written notification must

  3  include the obligor's rights and duties under the national

  4  medical support notice. The obligor may contest the

  5  withholding required by the national medical support notice

  6  based on a mistake of fact. To contest the withholding, the

  7  obligor must file a written notice of contest with the

  8  department within 15 business days after the date the obligor

  9  receives written notification of the national medical support

10  notice from the department. Filing with the department is

11  complete when the notice is received by the person designated

12  by the department in the written notification. The notice of

13  contest must be in the form prescribed by the department. Upon

14  the timely filing of a notice of contest, the department

15  shall, within 5 business days, schedule an informal conference

16  with the obligor to discuss the obligor's factual dispute. If

17  the informal conference resolves the dispute to the obligor's

18  satisfaction or if the obligor fails to attend the informal

19  conference, the notice of contest is deemed withdrawn. If the

20  informal conference does not resolve the dispute, the obligor

21  may request an administrative hearing under chapter 120 within

22  5 business days after the termination of the informal

23  conference, in a form and manner prescribed by the department.

24  However, the filing of a notice of contest by the obligor does

25  not delay the withholding of premium payments by the union,

26  employer, or health plan administrator. The union, employer,

27  or health plan administrator must implement the withholding as

28  directed by the national medical support notice unless

29  notified by the department that the national medical support

30  notice is terminated.

31

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  1         b.  In a Title IV-D case, the department shall notify

  2  an obligor's union or employer if the obligation to provide

  3  health care coverage through that union or employer is

  4  terminated. In cases in which the noncustodial parent provides

  5  health care coverage and the noncustodial parent changes

  6  employment and the new employer provides health care coverage,

  7  the IV-D agency shall transfer notice of the provision to the

  8  employer, which notice shall operate to enroll the child in

  9  the noncustodial parent's health plan, unless the noncustodial

10  parent contests the notice.  Notice to enforce medical

11  coverage under this section shall be served by the IV-D agency

12  upon the obligor by mail at the obligor's last known address.

13  The obligor shall have 15 days from the date of mailing of the

14  notice to contest the notice with the IV-D agency.

15         3.  In a non-Title IV-D case, upon receipt of the order

16  pursuant to subparagraph 1. or the notice pursuant to

17  subparagraph 2., or upon application of the obligor pursuant

18  to the order, the payor, union, or employer shall enroll the

19  minor child as a beneficiary in the group health insurance

20  plan regardless of any restrictions on the enrollment period

21  and withhold any required premium from the obligor's income.

22  If more than one plan is offered by the payor, union, or

23  employer, the child shall be enrolled in the group health

24  insurance plan in which the obligor is enrolled.

25         4.a.  Upon receipt of the national medical support

26  notice under subparagraph 2. in a Title IV-D case, the union

27  or employer shall transfer the notice to the appropriate group

28  health plan administrator within 20 business days after the

29  date on the notice. The plan administrator must enroll the

30  child as a beneficiary in the group health plan regardless of

31  any restrictions on the enrollment period, and the union or

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  1  employer must withhold any required premium from the obligor's

  2  income upon notification by the plan administrator that the

  3  child is enrolled. The child shall be enrolled in the group

  4  health plan in which the obligor is enrolled. If the group

  5  health plan in which the obligor is enrolled is not available

  6  where the child resides or if the obligor is not enrolled in

  7  group coverage, the child shall be enrolled in the lowest cost

  8  group health plan that is available where the child resides.

  9         b.  If health care coverage or the obligor's employment

10  is terminated in a Title IV-D case, the union or employer that

11  is withholding premiums for health care coverage under a

12  national medical support notice must notify the department

13  within 20 days after the termination and provide the obligor's

14  last known address and the name and address of the obligor's

15  new employer, if known.

16         5.a.  The amount withheld by a union or employer in

17  compliance with a support order may not exceed the amount

18  allowed under s. 303(b) of the Consumer Credit Protection Act,

19  15 U.S.C. s. 1673(b), as amended. The union or employer shall

20  withhold the maximum allowed by the Consumer Credit Protection

21  Act in the following order:

22         (I)  Current support, as ordered.

23         (II)  Premium payments for health care coverage, as

24  ordered.

25         (III)  Past due support, as ordered.

26         (IV)  Other medical support or coverage, as ordered.

27         b.  If the combined amount to be withheld for current

28  support plus the premium payment for health care coverage

29  exceed the amount allowed under the Consumer Credit Protection

30  Act, and the health care coverage cannot be obtained unless

31  the full amount of the premium is paid, the union or employer

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  1  may not withhold the premium payment. However, the union or

  2  employer shall withhold the maximum allowed in the following

  3  order:

  4         (I)  Current support, as ordered.

  5         (II)  Past due support, as ordered.

  6         (III)  Other medical support or coverage, as ordered.

  7         6.4.  The Department of Revenue may shall have the

  8  authority to adopt rules to administer implement the child

  9  support enforcement provisions of this section which affect

10  Title IV-D cases.

11         Section 3.  Paragraph (b) of subsection (1) of section

12  61.14, Florida Statutes, is amended to read:

13         61.14  Enforcement and modification of support,

14  maintenance, or alimony agreements or orders.--

15         (1)

16         (b)  For each support order reviewed by the department

17  as required by s. 409.2564(12), if the amount of the child

18  support award under the order differs by at least 10 percent

19  but not less than $25 from the amount that would be awarded

20  under s. 61.30, the department shall seek to have the order

21  modified and any modification shall be made without a

22  requirement for proof or showing of a change in circumstances.

23  In Title IV-D cases reviewed pursuant to the 3-year review and

24  adjustment cycle, no substantial change of circumstance need

25  be proven to warrant a modification.

26         Section 4.  Paragraph (c) of subsection (1) of section

27  61.30, Florida Statutes, is amended to read:

28         61.30  Child support guidelines; retroactive child

29  support.--

30         (1)

31

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  1         (c)  For each support order reviewed by the department

  2  as required by s. 409.2564(12), if the amount of the child

  3  support award under the order differs by at least 10 percent

  4  but not less than $25 from the amount that would be awarded

  5  under s. 61.30, the department shall seek to have the order

  6  modified and any modification shall be made without a

  7  requirement for proof or showing of a change in circumstances.

  8  In Title IV-D cases reviewed pursuant to the 3-year review and

  9  adjustment cycle, no change of circumstance need be proven to

10  warrant a modification.

11         Section 5.  Effective July 1, 2002, subsection (3) of

12  section 409.25656, Florida Statutes, is amended to read:

13         409.25656  Garnishment.--

14         (3)  During the last 30 days of the 60-day period set

15  forth in subsection (1), the executive director or his or her

16  designee may levy upon such credits, personal property, or

17  debts. The levy must be accomplished by delivery of a notice

18  of levy by registered mail, upon receipt of which the person

19  possessing the credits, other personal property, or debts

20  shall transfer them to the department or pay to the department

21  the amount owed by to the obligor. If the department levies

22  upon securities and the value of the securities is less than

23  the total amount of past due or overdue support, the person

24  who possesses or controls the securities shall liquidate the

25  securities in a commercially reasonable manner. After

26  liquidation, the person shall transfer to the department the

27  proceeds, less any applicable commissions or fees, or both,

28  which are charged in the normal course of business. If the

29  value of the securities exceeds the total amount of past due

30  or overdue support, the obligor may, within 7 days after

31  receipt of the department's notice of levy, instruct the

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  1  person who possesses or controls the securities which

  2  securities are to be sold to satisfy the obligation for past

  3  due or overdue support. If the obligor does not provide

  4  instructions for liquidation, the person who possesses or

  5  controls the securities shall liquidate the securities in a

  6  commercially reasonable manner and in an amount sufficient to

  7  cover the obligation for past due or overdue support, less any

  8  applicable commissions or fees, or both, which are charged in

  9  the normal course of business, beginning with the securities

10  purchased most recently. After liquidation, the person who

11  possesses or controls the securities shall transfer to the

12  department the total amount of past due or overdue support.

13         Section 6.  Subsections (1) and (2) of section

14  409.25658, Florida Statutes, are amended to read:

15         409.25658  Use of unclaimed property for past due

16  support.--

17         (1)  In a joint effort to facilitate the collection and

18  payment of past due support, the Department of Revenue, in

19  cooperation with the Department of Banking and Finance, shall

20  identify persons owing support collected through a court who

21  are presumed to have unclaimed abandoned property held by the

22  Department of Banking and Finance.

23         (2)  The department shall periodically provide the

24  Department of Banking and Finance with an electronic file of

25  support obligors who owe past due support. The Department of

26  Banking and Finance shall conduct a data match of the file

27  against all apparent owners of unclaimed abandoned property

28  under chapter 717 and provide the resulting match list to the

29  department.

30         Section 7.  Effective July 1, 2002, subsection (7) of

31  section 409.2576, Florida Statutes, is amended to read:

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  1         409.2576  State Directory of New Hires.--

  2         (7)  WAGE WITHHOLDING NOTICE AND NATIONAL MEDICAL

  3  SUPPORT NOTICE.--The department Not later than October 1,

  4  1998, the Title IV-D agency shall transmit a wage withholding

  5  notice consistent with s. 61.1301 and, when appropriate, a

  6  national medical support notice, as defined in s. 61.046, to

  7  the employee's employer within 2 business days after of entry

  8  of the new hire information into the State Directory of New

  9  Hires' database, unless the court has determined that the

10  employee's wages are not subject to withholding or, for

11  purposes of the national medical support notice, the support

12  order does not contain a provision for the employee to provide

13  health care coverage. The withholding notice shall direct the

14  employer to withhold income in accordance with the income

15  deduction order and the national medical support notice shall

16  direct the employer to withhold premiums for health care

17  coverage.

18         Section 8.  Except as otherwise expressly provided in

19  this act, this act shall take effect upon becoming a law.

20

21            *****************************************

22                          SENATE SUMMARY

23    Revises various provisions of law governing the
      determination and enforcement of child-support
24    obligations. Defines the term "national medical support
      notice" and provides for enforcement of an order to
25    provide health care coverage for a minor child through
      use of the national medical support notice. Provides a
26    procedure for liquidating securities that are levied for
      purposes of satisfying an obligation of child support.
27    Provides for matching lists of unclaimed property against
      apparent owners for purposes of satisfying an obligation
28    for child support. (See bill for details.)

29

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