ASSEMBLY, No. 2646
STATE OF NEW JERSEY
INTRODUCED JANUARY 9, 1997
By Assemblyman ROONEY and Assemblywoman VANDERVALK
An Act concerning income withholding and amending P.L.1981, c.417.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 2 of P.L.1981, c.417 (C.2A:17-56.8) is amended to read as follows:
2. Every complaint, notice or pleading for the entry or modification of an order of a court which includes child support shall include a written notice to the obligor stating that the child support provision of the order shall, and the medical support provision may, as appropriate, be enforced by an income withholding upon the current or future income due from the obligor's employer or successor employers and upon the unemployment compensation benefits due the obligor and against debts, income, trust funds, profits or income from any other source due the obligor except as provided in section 3 of P.L.1981, c.417 (C.2A:17-56.9). The written notice shall also state that the driver's license and professional or occupational licenses held or applied for by the obligor may be denied, suspended or revoked if: the child support arrearage is equal to or exceeds the amount of child support payable for six months; the obligor fails to provide health insurance for the children as ordered by the court for six months; or a warrant for the obligor's arrest has been issued by the court due to failure to pay child support as ordered, failure to appear at a hearing to establish paternity or child support, or failure to appear at a hearing to enforce a child support order and said warrant remains outstanding. The written notice shall also state that the amount of a IV-D child support order and the provisions for medical support coverage shall be reviewed and updated, as necessary, at least every three years.
The court shall ensure that in the case of each obligor against whom a support order is or has been issued or modified, the obligor's income shall be withheld to comply with the order. An amount shall be withheld to pay the support obligation and it shall include an amount to be applied toward liquidation of arrearages reduced to judgments, payments for paternity testing procedures and provisions for medical support coverage when applicable. These provisions shall also be applicable to all orders issued on or before the effective date of [this act] P.L.1981, c.417 (C.2A:17-56.7 et seq.).
Beginning on the effective date of P.L.,c. (pending before the Legislature as this bill), a child support obligation contained in any order or judgment issued by the court shall be paid by income withholding unless the order or judgment specifically provides for an alternative payment arrangement.
(cf: P.L.1996, c.7, s.1)
2. Section 3 of P.L.1981, c.417 (C.2A:17-56.9) is amended to read as follows:
3. [The income withholding shall be initiated by the probation department of the county in which the obligor resides immediately] For child support obligations that are payable through the Probation Division of the Superior Court, the Probation Division shall mail the notice of immediate income withholding to the payor of the obligor's income within 15 calendar days after the court order has been issued [; except that immediate] if the payor is known or, if the payor is not known, within 15 calendar days of identifying the payor. For child support obligations that are not payable through the Probation Division, the Probation Division shall mail the notice of income withholding within 15 calendar days of the date that the obligee requests such services. Immediate withholding shall not apply in those cases in which the obligor and obligee agree in writing to an alternative arrangement or the obligor or obligee demonstrates and the court finds good cause for establishing an alternative arrangement.
If an [immediate withholding is not ordered, due to the above exception] alternative payment arrangement is agreed upon, or [an] the order was entered prior to the effective date of [this act, the] P.L.1990, c.92, an income withholding shall be initiated by the Probation Division when the obligor has failed to make a required child support payment allocated or unallocated that has arrearages accrued equal to the amount of the support payable for 14 days. Subject to the provisions of [this act, the]P.L.1990, c.92, a Probation Division initiated income withholding shall take effect without amendment to the support order or further court or quasi-judicial action and without regard to any alternative arrangements entered into by the parties.
The total amount of income to be withheld shall not exceed the maximum amount permitted under section 303 (b) of the federal Consumer Credit Protection Act (15 U.S.C. §1673 (b)). The income withholding shall be carried out in full compliance with all procedural due process requirements. The Administrative Office of the Courts shall establish procedures for promptly terminating the withholding when necessary and for promptly refunding amounts which have been improperly withheld.
(cf: P.L.1990,c.92,s.2)
3. Section 4 of P.L.1981, c.417 (C.2A:17-56.10) is amended to read as follows:
4. a. [The probation department] If a Probation Division initiated income withholding is required as specified in section 3 of P.L.1981, c.417 (C.2A:17:56.9), the Probation Division of the Superior Court shall notify the obligor of the income withholding by certified or registered mail with return receipt requested to the last known address. The notice shall be postmarked no later than 10 days after the date on which the application was filed, and shall inform the obligor that the withholding shall take effect 10 days after the postmark date of the notice unless the obligor contests the withholding. An obligor may contest a withholding only on the basis of mistake of fact. The notice to the obligor shall include but not be limited to: the amount to be withheld, including an amount to be applied toward liquidation of arrearages; a statement that the withholding applies to current and subsequent sources of income; the methods available for contesting the withholding on the grounds that the withholding is not proper because of mistake of fact; the period within which the [probation department] Probation Division shall be contacted in order to contest the withholding and that failure to do so will result in notifying the payor to begin withholding; and the actions the [probation department] Probation Division will take if the individual contests the withholding.
If an obligor contests the proposed withholding, the [probation department] Probation Division shall schedule a hearing within 20 days after receiving notice of contest of the withholding. If it is determined that the withholding is to occur, the [probation department] Probation Division shall provide notice to the obligor. Notice to the obligor shall include the time within which the withholding is to begin. Notice to the obligor shall also include all of the information that is included in the notice to the payor in section 5 of [this act] P.L.1981, c.417 (C.2A:17-56.11). The obligor shall be notified by the [probation department] Probation Division within five days of the determination made at the hearing.
b. The [probation department] Probation Division shall prepare the income withholding notice when the obligor does not contest the withholding or has exhausted all procedures established by the Administrative Office of the Courts for contesting the withholding. The income withholding shall include requirements that a payor withhold the amount specified in the notice and shall include a statement that the amount actually withheld for support and for other purposes may not be in excess of the amount allowed under section 303(b) of the federal Consumer Credit Protection Act (15 U.S.C. §1673(b)). On any order modifying alimony, maintenance or child support based upon changed circumstances, the income withholding amount shall also be changed accordingly. This income withholding shall have priority over any other withholdings without regard to the dates of the other income withholdings.
c. An income withholding made under this act shall continue in full force and effect until such time as a court order to the contrary is entered [upon the liquidation of all arrearages].
d. Where there is more than one support order for withholding against a single obligor, the payor shall withhold the payments to fully comply with the court orders on a pro rata basis to the extent that the total amount withheld from the obligor's wages does not exceed the limits allowed under section 303(b) of the federal Consumer Credit Protection Act (15 U.S.C. s. 1673(b)). Payors may combine withheld amounts in a single payment [for each appropriate probation department requesting withholding] and separately identify the portion of the payment which is attributable to each individual obligor.
(cf: P.L.1985, c.278, s.4)
4. This act shall take effect immediately.
STATEMENT
This bill amends P.L.1981, c.417 (C.2A:17-56.7 et seq.) to require all court orders for child support to include immediate income withholding unless the order or judgment expressly provides for an alternative payment arrangement.
Under current law, each court order or judgment must specifically include a provision requiring that child support is payable by income withholding. If an order does not contain such a provision, the Probation Division does not initiate an income withholding unless the obligor fails to pay the support and accumulates an arrearage equal to 14 days of support.
By amending P.L.1981, c.417, the processing of income withholdings can be improved and the need for an income withholding provision in each child support order would be avoided.
Additionally, this bill adds a 15-day processing time standard for the Probation Division which is consistent with the federal time standard.
References to "probation department" have been replaced by "Probation Division" to reflect the State takeover of the county probation departments which occurred pursuant to P.L.1993, c.275 (C.2B:10-1 et seq.)
Requires all court orders for child support to include immediate income withholding unless alternative payment arrangement is made.