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ARIZONA HOUSE OF REPRESENTATIVESFifty-fourth Legislature Second Regular Session |
Senate: JUD DP 7-0-0-0 | 3rd Read 26-0-4-0House: JUD DP 9-0-0-1 |
SB 1555: support order; dishonored payment; lien
Sponsor: Senator Farnsworth E, LD 12
House Engrossed
Overview
Allows the Department of Economic Security (DES) to accept alternative forms of payment for child support payments and modifies the administrative lien process for child support arrears.
History
A title IV-D case refers to child support orders enforced by a child support enforcement agency (42 U.S.C. 651). Arizona statute states that every person has to provide all reasonable support for their natural and adopted minor, unemancipated children regardless of the presence or residence of the child (A.R.S. § 25-501). The court may order either or both parents to pay any necessary amount of child support and specifies payment for support to be completed by a personal check. If the payor bank or drawee dishonors a personal check, any subsequent support payments and handling fees must be paid only by specified forms of payment. Additionally, if a party demonstrates full and timely payment for 24 consecutive months, that party may return to paying support by personal check. (A.R.S. § 25-503).
In a title IV-D case, Arizona statute states that if a person obligated to pay child support is in arrears for an amount equal to at least two months' child support, the unpaid amounts constitute a lien by operation of law on all property owned and later acquired by the obligor. DES must notify the obligor that a notice of lien may be filed against them prior to perfecting the lien through filing a notice of lien with the county recorder. This notice specifies the obligor arrearage in child support pay, their ability to request an administrative review, and the consequences if the obligor does not properly respond. If the obligor fails to respond, a secondary notice is mailed and then, the notice of lien is filed after 15 days of the second notice upon further lack of response.
If an administrative review is requested, DES is required to determine whether to proceed with filing a notice of lien based upon the obligor's requirement to pay child support, the status of the arrearage, and other information relevant to the case. DES may release the property subject to the lien at any time and if any imposed lien from the title IV-D case is satisfied and the notice of lien has been recorded. Arizona must give a lien recorded in another state full faith and credit if the state agency or party seeking to enforce the lien complies with Arizona's notice requirements and all applicable laws (A.R.S. § 25-516).
Provisions
1.
States when electronic forms of
payment, business checks and personal checks are dishonored, a
person is allowed to pay child support by regularly accepted forms of
payment. (Sec. 1)
2. Mandates that if an administrative review is requested, the review and ruling must occur within 10 business days for a lien created by a child support order. (Sec. 2)
3. States in a title IV-D child support case, a lien by operation of law is created by an order to pay child support rather than an arrearage equal to at least two month's child support. (Sec. 2)
4. Authorizes DES to perfect a lien by submitting a copy of the child support order rather than a notice of lien. (Sec. 2)
5. Removes the requirement that the notice of a recorded lien must specify the nature of the debt, the amount, name and last known address of the debtor. (Sec. 2)
6. States the lien amount includes the amount owed at the time of recording and any amounts accrued later. (Sec. 2)
7. Removes the notice DES is required to send to an obligor who is at least two months in arrears in making child support payments. (Sec. 2)
8. Requires the recording of the child support order to be accompanied by the judgment creditor's information statement outlining the amount of the current support order at the time of recording and mailed to the debtor at the debtor's last known address. (Sec.)
9. Stipulates that on request, DES must provide a payoff amount to the debtor or a party acting with the debtor's consent; if the debtor disagrees with the payoff amount, the debtor may make a written request for administrative review to contest the debt. (Sec. 2)
10. States when DES closes a title IV-D case, DES must release any lien. (Sec. 2)
11. Specifies the released lien does not satisfy abt amount of unpaid support or release the lien associated with a recorded judgment. (Sec. 2)
12. Removes that the state must give a lien recorded in another state full faith and credit if the state agency, party or other entity seeking to enforce the lien complies with the notice requirements and records the lien to the applicable laws of this state. (Sec. 2)
13. Makes conforming changes. (Sec. 2, 3)
14. Makes technical changes. (Sec. 1, 2, 3)
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18. SB 1555
19. Initials LC Page 0 House Engrossed
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