Bill Text - HB618 (2024)

Relative to wage garnishment with child support payments.

Revision: Jan. 17, 2023, 8:45 a.m.

HB 618-FN - AS INTRODUCED

 

 

2023 SESSION

23-0089

06/04

 

HOUSE BILL 618-FN

 

AN ACT relative to wage garnishment with child support payments.

 

SPONSORS: Rep. Spillane, Rock. 2; Rep. Edwards, Rock. 31; Rep. Notter, Hills. 12; Rep. DeSimone, Rock. 18

 

COMMITTEE: Children and Family Law

 

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ANALYSIS

 

This bill adds restrictions to the circumstances for an income assignment.

 

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

23-0089

06/04

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty Three

 

AN ACT relative to wage garnishment with child support payments.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

1  New Paragraph; Assignment of Income; Notice to Parties.  Amend RSA 458-B:2 by inserting after paragraph I the following new paragraph:

I-a.  At the time of the divorce hearing the court shall notify each party that their income assignment of wages for child support will be automatic under RSA 458-B:2 unless both parties come to an agreement under another arraignment.

2  Income Assignment.  RSA 458-B:2, II(a) is repealed and reenacted to read as follows:

II.(a)  In the event that an assignment is suspended in the first instance, it shall take effect:

(1)  At the request of the obligor;

(2)  Upon a court finding that the obligor is in violation or contempt of an order of support;

(3)  After notice and an opportunity to contest pursuant to RSA 458-B:5 and RSA 458-B:7, when the state has commenced payment of public assistance for the benefit of a child;

(4)  When an arrearage period amounting to the support owed for 2-months or more has accrued;

(5)  If the obligor resides out of state; or

(6)  A court has imposed a protective order that is in effect and related to the order of support.

3  New Paragraph; Income Assignment; Department of Health and Human Services as Responsible Agency.  Amend RSA 458-B:3 by inserting after paragraph I the following new paragraph:

I-a.  The department of health and human services, division of child support services, shall develop a standard form to be presented at the final divorce hearing for waiving of garnishment of wages, with such form containing the following:

(a)  The details of when garnishment of wages will become mandatory.

(b)  Allowing for both parties to detail their preferred form of payment arrangement.

(c)  Informing the payer that record keeping to prove payments in the event of a discrepancy is their responsibility,

(d)  Informing the payee how to report missed payments by the payer.

4  Effective Date.  This act shall take effect January 1, 2024.

 

LBA

23-0089

Revised 1/13/23

 

HB 618-FN- FISCAL NOTE

AS INTRODUCED

 

AN ACT relative to wage garnishment with child support payments.

 

FISCAL IMPACT:      [ X ] State              [    ] County               [    ] Local              [    ] None

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2023

FY 2024

FY 2025

FY 2026

   Appropriation

$0

$0

$0

$0

   Revenue

$0

$0

$0

$0

   Expenditures

$0

Indeterminable Decrease

Indeterminable Decrease

Indeterminable Decrease

Funding Source:

  [ X ] General            [    ] Education            [    ] Highway           [    ] Other

 

 

 

 

 

METHODOLOGY:

This bill adds restrictions to the circumstances for an income assignment. The Department of Health and Human Services, Bureau of Child Support Services states, if this proposed legislation were enacted there could be an indeterminate cost to implement required changes to the Department’s automated systems.  To fulfill its statutory duty to enforce child support orders, the Department relies on multiple procedures and automated systems to set up and track Court orders for child support enforcement. Any changes to the Department’s procedure in enforcement remedies could require changes to the New England Child Support Enforcement System.  Such changes may result in one-time State expenditures. In addition to system changes, the Bureau would need to rewrite internal policies and forms to account for the change in the law.  Under Social Security Act Title IV-D, federal funds are available for 66% of eligible expenditures funds with a 34% match of general funds.

 

The Department indicates, some of the provisions of the bill would place the Department out of compliance with its federal State Plan requirements and in direct conflict with federal law, making the state subject to significant federal sanctions:

  • Proposed RSA 458-B:2, II(a),(4) "When an arrearage period amounting to the support owed for 2-months or more has accrued".  Currently, such orders are eligible for an income assignment when the arrears accumulate to a one-month period.  This proposal seeks to make that accrual period two months.  This amendment conflicts with federal 45 CFR §303.100 (c)(1) which states that the income of the noncustodial parent shall become subject to the withholding on the date on which the payments which the noncustodial parent has failed to make under a support order are at least equal to the support payable for one month.  The Department states it is reasonable to assume this change would negatively impact the Department’s ability to collect child support.  This could result in more families seeking aid through various state assistance programs.
  • Regarding RSA 458-B:2,3 "Income Assignment; Department of Health and Human Services as Responsible Agency", the Department states the Bureau is responsible for administering the State’s child support program which was created as part of Title IV-D of the Social Security Act of 1975 and is so constrained by its enabling law, its subsequent amendments, and all pertinent federal regulations. Before the Bureau is able to act on a matter it must have an application for services from at least one of the parties.  Until the Bureau receives an application for services, it cannot assist with facilitating a paternity test, establishing an order for support, enforcing an order of support or taking any other action that may normally fall within the purview of its IV-D authority.  Requiring the Bureau to become involved with divorce proceedings may cause the Bureau to exceed the scope of its IV-D mandate.  

 

Federal sanctions for  failure to comply with the State Plan requirements as outlined in Title IV-D of the Social Security Act and related federal regulations could be up to the total loss of federal funding designated for operating New Hampshire’s child support program.  In addition there could be a loss of federal child support performance measure incentive funds, and loss of up to five percent (5%) of the state’s TANF Block Grant. (the penalty against the TANF Block Grant is progressive and would continue each and every quarter until such time as the State is in compliance).  The operational funding for New Hampshire’s child support program is $20.6M ($13.6M in Federal funds); $1.2M in federal child support performance measure incentive funds; and $1.9M in federal TANF Block Grant funding.

 

The Judicial Branch assumes, for purposes of determining the fiscal impact, the changes will not result in any substantive increase or decrease in child support litigation and therefore should not have a fiscal impact on the Branch.

 

The bill makes no appropriation for its implementation.  

 

AGENCIES CONTACTED:

Department of Health and Human Services and Judicial Branch