ASSEMBLY, No. 737

 

STATE OF NEW JERSEY

 

Introduced Pending Technical Review by Legislative Counsel

 

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

 

 

By Assemblymen GREGG and KRAMER

 

 

An Act concerning medical support coverage pursuant to a child support order and amending P.L.1981, c.417.

 

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

    1. Section 5 of P.L.1981, c.417 (C.2A:17-56.11) is amended to read as follows:

    5. An income withholding made under this act and provisions for medical support coverage shall be binding upon the payor and successor payors immediately after service upon the payor by the probation department of a copy of the income withholding and an order for the provision of medical support coverage, by registered or certified mail with return receipt requested until further order. The payor is to pay the withheld amount to the probation department at the same time the obligor is paid. The payor shall implement withholding and the provisions for medical support coverage no later than the first pay period that ends immediately after the date the notice was postmarked. For each payment, other than payment received from the unemployment compensation fund, the payor may receive $1.00, which shall be deducted from the obligor's income in addition to the amount of the support order.

    Notice to the payor shall include, but not be limited to, instructions for the provisions for medical support coverage, the amount to be withheld from the obligor's income and a statement that the amount actually withheld for support and other purposes may not be in excess of the maximum amount permitted under section 303 (b) of the federal Consumer Credit Protection Act (15 U.S.C.§1673 (b)); that the payor shall send the amount to the probation department at the same time the obligor is paid, unless the probation department directs that payment be made to another individual or entity; that the payor may deduct a fee of $1.00 in addition to the amount of the support order except when the payment is received from the unemployment compensation fund; that withholding is binding on the payor until further notice by the probation department; that the payor is subject to a fine for discharging an obligor from employment, refusing to employ, or taking disciplinary action against an obligor because of the withholding; that if the payor fails to take appropriate action with regard to the provisions for medical support coverage or withhold wages in accordance with the provisions of the notice, the payor is liable for [any medical expenses incurred by the children subject to the provisions for medical support coverage and] any amount up to the accumulated amount the payor should have withheld from the obligor's income; that the withholding shall have priority over any other legal process under State law against the same wages; that the payor may combine withheld amounts from the obligor's wages in a single payment to each appropriate agency requesting withholding and separately identify the portion of the single payment which is attributable to each individual obligor; that if there is more than one support order for withholding against a single obligor, the payor shall withhold the payments on a pro rata basis to fully comply with the support orders, to the extent that the total amount withheld does not exceed the limits imposed under section 303 (b) of the federal Consumer Credit Protection Act (15 U.S.C.§1673 (b)); that the payor shall implement withholding no later than the first pay period that ends immediately after the date the notice was postmarked; and that the payor shall notify the probation department promptly upon the termination of the obligor's employment benefits and provide the obligor's last known address and the name and address of the obligor's new payor, if known.

(cf: P.L.1995, c.58, s.3)

 

    2. This act shall take effect immediately.

 

 

STATEMENT

 

    This amendment removes an employer's liability for medical expenses incurred by the child of a child support obligor, which was included in the income withholding provisions of P.L.1981, c.417 (C.2A:17-56.7 et seq.) by an amendment to that law under P.L.1995, c.58 (Senate Bill No. 1308 of 1994). The bill leaves intact the provisions of P.L.1995, c.58 which require an employer to enforce the health insurance coverage obligations of a child support oligor whom he employs.


 

Removes an employer's liability for medical expenses incurred by the child of a child support obligor.