GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1999

S	1 

SENATE BILL 538

Short Title:  Child Support Collection Change.	(Public)

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Sponsors: Senator Jordan.

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Referred to:  Judiciary II.

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March 29, 1999

A BILL TO BE ENTITLED
AN ACT TO TRANSFER RESPONSIBILITY FOR COLLECTION OF ALL CHILD SUPPORT PAYMENTS CURRENTLY COLLECTED BY THE CLERKS OF SUPERIOR COURTS TO THE STATE CHILD SUPPORT COLLECTION AND DISBURSEMENT UNIT.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 15A-1344.1 reads as rewritten:
"§ 15A-1344.1.  Procedure to insure payment of child support.
(a)	When the court requires, as a condition of supervised or unsupervised probation, that a defendant support his children, the court may order at any time that support payments be made to the State Child Support Collection and Disbursement Unit for remittance to the party entitled to receive the payments.  For child support orders initially entered on or after January 1, 1994, the immediate income withholding provisions of G.S. 110-136.5(c1) apply.
(b)	After entry of such an order by the court, the clerk of court shall maintain records listing the amount of payments, the date payments are required to be made, and the names and addresses of the parties affected by the order.
(c)	The parties affected by the order shall inform the clerk of court and the State Child Support Collection and Disbursement Unit of any change of address or of other condition that may affect the administration of the order.  The court may provide in the order that a defendant failing to inform the court and the State Child Support Collection and Disbursement Unit of a change of address within reasonable period of time may be held in violation of probation.
(d)	When a defendant in a non-IV-D case, as defined in G.S. 110-129, fails to make required payments of child support and is in arrears, upon notification by the State Child Support Collection and Disbursement Unit the clerk of superior court may mail by regular mail to the last known address of the defendant a notice of delinquency that sets out the amount of child support currently due and that demands immediate payment of the amount.  Failure to receive the delinquency notice is not a defense in any probation violation hearing or other proceeding thereafter.  If the arrearage is not paid in full within 21 days after the mailing of the delinquency notice, or is not paid within 30 days after the defendant becomes delinquent if the clerk has elected not to send a delinquency notice, the clerk shall certify the amount due to the district attorney and probation officer, who shall initiate proceedings for revocation of probation pursuant to Article 82 of Chapter 15A or make a motion in the criminal case for income withholding pursuant to G.S. 110-136.5 or both.
When a defendant in a IV-D case, as defined in G.S. 110-129, fails to make required payments of child support and is in arrears, at the request of the IV-D obligee the clerk shall certify the amount due to the district attorney and probation officer, who shall initiate proceedings for revocation of probation pursuant to Article 82 of Chapter 15A or make a motion in the criminal case for income withholding pursuant to G.S. 110-136.5 or both."
Section 2.  G.S. 50-13.4(d) reads as rewritten:
"(d)	In non-IV-D cases, payments for the support of a minor child shall be ordered to be paid to the person having custody of the child or any other proper person, agency, organization or institution, or to the State Child Support Collection and Disbursement Unit, for the benefit of the child. In IV-D cases, payments for the support of a minor child shall be ordered to be paid to the State Child Support Collection and Disbursement Unit for the benefit of the child."
Section 3.  G.S. 50-13.9(a) reads as rewritten:
"(a)	Upon its own motion or upon motion of either party, the court may order at any time that support payments be made to the State Child Support Collection and Disbursement Unit for remittance to the party entitled to receive the payments. For child support orders initially entered on or after January 1, 1994, the immediate income withholding provisions of G.S. 110-136.5(c1) apply."
Section 4.  G.S. 50-13.9(b) reads as rewritten:
"(b)	After entry of an order by the court under subsection (a) of this section, the State Child Support Collection and Disbursement Unit shall transmit child support payments that are made to it to the custodial parent or other party entitled to receive them, unless a court order requires otherwise."
Section 5.  G.S. 50-13.9(b2) reads as rewritten:
"(b2)	In a non-IV-D case:
(1)	The clerk of court shall have the responsibility and authority for monitoring the obligor's compliance with all child support orders in the case and for initiating any enforcement procedures that it considers appropriate.  The State Child Support Collection and Disbursement Unit shall notify the clerk of court of all payments made in non-IV-D cases so that the clerk of court can initiate enforcement proceedings as provided in subsection (d) of this section.
(2)	The clerk of court shall maintain all official records in the case.
(3)	The clerk of court shall maintain any other records needed to monitor the obligor's compliance with or to enforce the child support orders in the case, including records showing the amount of each payment of child support received from or on behalf of the obligor, along with the dates on which each payment was received."
Section 6.  G.S. 50-13.9(d) reads as rewritten:
"(d)	In a non-IV-D case, when the clerk of superior court is notified by the State Child Support Collection and Disbursement Unit that an obligor has failed to make a required payment of child support and is in arrears, the clerk of superior court shall mail by regular mail to the last known address of the obligor a notice of delinquency. The notice shall set out the amount of child support currently due and shall demand immediate payment of that amount. The notice shall also state that failure to make immediate payment will result in the issuance by the court of an enforcement order requiring the obligor to appear before a district court judge and show cause why the support obligation should not be enforced by income withholding, contempt of court, revocation of licensing privileges, or other appropriate means. Failure to receive the delinquency notice is not a defense in any subsequent proceeding. Sending the notice of delinquency is in the discretion of the clerk if the clerk has, during the previous 12 months, sent a notice or notices of delinquency to the obligor for nonpayment, or if income withholding has been implemented against the obligor or the obligor has been previously found in contempt for nonpayment under the same child support order.
If the arrearage is not paid in full within 21 days after the mailing of the delinquency notice, or without waiting the 21 days if the clerk has elected not to mail a delinquency notice for any of the reasons provided in this subsection, the clerk shall cause an enforcement order to be issued and shall issue a notice of hearing before a district court judge. The enforcement order shall order the obligor to appear and show cause why the obligor should not be subjected to income withholding or adjudged in contempt of court, or both, and shall order the obligor to bring to the hearing records and information relating to the obligor's employment, the obligor's licensing privileges, and the amount and sources of the obligor's disposable income. The enforcement order shall state:
(1)	That the obligor is under a court order to provide child support, the name of each child for whose benefit support is due, and information sufficient to identify the order;
(2)	That the obligor is delinquent and the amount of overdue support;
(2a)	That the court may order the revocation of some or all of the obligor's licensing privileges if the obligor is delinquent in an amount equal to the support due for one month;
(3)	That the court may order income withholding if the obligor is delinquent in an amount equal to the support due for one month;
(4)	That income withholding, if implemented, will apply to the obligor's current payors and all subsequent payors and will be continued until terminated pursuant to G.S. 110-136.10;
(5)	That failure to bring to the hearing records and information relating to his employment and the amount and sources of his disposable income will be grounds for contempt;
(6)	That if income withholding is not an available or appropriate remedy, the court may determine whether the obligor is in contempt or whether any other enforcement remedy is appropriate.
The enforcement order may be signed by the clerk or a district court judge, and shall be served on the obligor pursuant to G.S. 1A-1, Rule 4, Rules of Civil Procedure. The clerk shall also notify the party to whom support is owed of the pending hearing. The clerk may withdraw the order to the supporting party upon receipt of the delinquent payment. On motion of the person to whom support is owed, with the approval of the district court judge, if the district court judge finds it is in the best interest of the child, no enforcement order shall be issued.
When the matter comes before the court, the court shall proceed as in the case of a motion for income withholding under G.S. 110-136.5. If income withholding is not an available or adequate remedy, the court may proceed with contempt, imposition of a lien, or other available, appropriate enforcement remedies.
This subsection shall apply only to non-IV-D cases, except that the clerk shall issue an enforcement order in a IV-D case when requested to do so by an IV-D obligee."
Section 7.  G.S. 50-13.10(e) reads as rewritten:
"(e)	When a child support payment that is to be made to the State Child Support Collection and Disbursement Unit is not received by the Unit when due, the payment is not a past due child support payment for purposes of this section, and no arrearage accrues, if the payment is actually made to and received on time by the party entitled to receive it and that receipt is evidenced by a canceled check, money order, or contemporaneously executed and dated written receipt.  Nothing in this section shall affect the duties of the clerks or the State Child Support Collection and Disbursement Unit under this Chapter or Chapter 110 of the General Statutes with respect to payments not received by the Unit on time, but the court, in any action to enforce such a payment, may enter an order directing the clerk to enter the payment on the clerk's records as having been made on time, if the court finds that the payment was in fact received by the party entitled to receive it as provided in this subsection."
Section 8.  G.S. 110-136(d) reads as rewritten:
"(d)	Upon receipt of an order of garnishment, the garnishee shall transmit without delay to the State Child Support Collection and Disbursement Unit the amount ordered by the court to be garnished. These funds shall be disbursed to the party designated by the court which in those cases of dependent children receiving public assistance shall be the North Carolina Department of Health and Human Services."
Section 9.  G.S. 110-136.5(b) reads as rewritten:
"(b)	Withholding Based on Obligor's Request.  The obligor may request at any time that income withholding be implemented.  The request may be made either verbally in open court or by written request.
(1)	A written request for withholding shall state:
a.	That the obligor is under a court order to provide child support, and information sufficient to identify the order;
b.	Whether the obligor is delinquent and the amount of any overdue support;
c.	The name of each child for whose benefit support is payable;
d.	The name, location, and mailing address of the payor or payors from whom the obligor receives disposable income and the amount of the obligor's monthly disposable income from each payor;
e.	That the obligor understands that withholding, if implemented, will apply to the obligor's current payors and all subsequent payors and will be continued until terminated pursuant to G.S. 110-136.10; and
f.	That the obligor understands that the amount withheld will include an amount sufficient to pay current child support, an additional amount toward liquidation of any arrearages, and a two dollar ($2.00) processing fee to be retained by the employer for each withholding, but that the total amount withheld may not exceed the following percent of disposable income:
1.	Forty percent (40%) if there is only one order for withholding;
2.	Forty-five percent (45%) if there is more than one order for withholding and the obligor is supporting other dependent children or his or her spouse; or
3.	Fifty percent (50%) if there is more than one order for withholding and the obligor is not supporting other dependent children or a spouse.
(2)	A written request for withholding shall be filed in the office of the clerk of superior court of the court that entered the order for child support.  If the request states and the clerk verifies that the obligor is not delinquent, the court may enter an order for withholding without further notice or hearing.  If the request states or the clerk finds that the obligor is delinquent, the matter shall be scheduled for hearing unless the obligor in writing waives his right to a hearing and consents to the entry of an order for withholding of an amount the court determines to be appropriate.  The court may require a hearing in any case.  Notice of any hearing under this subdivision shall be sent to the obligee."
Section 10.  G.S. 110-136.8(b) reads as rewritten:
"(b)	Payor's responsibilities.  A payor who has been properly served with a notice to withhold is required to:
(1)	Withhold from the obligor's disposable income and, within 7 business days of the date the obligor is paid, send to the State Child Support Collection and Disbursement Unit the amount specified in the notice and the date the amount was withheld, but in no event more than the amount allowed by G.S. 110-136.6; however, if a lesser amount of disposable income is available for any pay period, the payor shall either: 
a.	Compute and send the appropriate amount to the State Child Support Collection and Disbursement Unit using the percentages as provided in G.S. 110-136.6; or 
b.	Request the initiating party to inform the payor of the proper amount to be withheld for that period;
(2)	Continue withholding until further notice from the IV-D agency or the State Child Support Collection and Disbursement Unit;
(3)	Withhold for child support before withholding pursuant to any other legal process under State law against the same disposable income;
(4)	Begin withholding from the first payment due the obligor in the first pay period that occurs 14 days following the date the notice of the obligation to withhold was served on the payor;
(5)	Promptly notify the obligee in a IV-D case or the State Child Support Collection and Disbursement Unit in a non-IV-D case, in writing:
a.	If there are one or more orders of child support withholding for the obligor;
a1.	If there are one or more orders of alimony or postseparation support withholding for the obligor;
b.	When the obligor terminates employment or otherwise ceases to be entitled to disposable income from the payor, and provide the obligor's last known address, and the name and address of his new employer, if known;
c.	Of the payor's inability to comply with the withholding for any reason; and
(6)	Cooperate fully with the initiating party in the verification of the amount of the obligor's disposable income."
Section 11.  G.S. 110-136.8(d) reads as rewritten:
"(d)	The payor may combine amounts withheld from obligors' disposable incomes in a single payment to the State Child Support Collection and Disbursement Unit if the payor separately identifies by name and case number the portion of the single payment attributable to each individual obligor and the date that each payment was withheld from the obligor's disposable income."
Section 12.  G.S. 110-136.9 reads as rewritten:
"§ 110-136.9.  Payment of withheld funds.
In all cases, the State Child Support Collection and Disbursement Unit shall distribute payments received from payors to the appropriate recipient."
Section 13.  G.S. 110-139(f) reads as rewritten:
"(f)	There is established the State Child Support Collection and Disbursement Unit. The duties of the Unit shall be the collection and disbursement of payments under support orders 
		for all cases.  The Department may administer and operate the Unit or may contract with another State or private entity for the administration and operation of the Unit."
Section 14.  This act becomes effective October 1, 1999.