House Study Bill 624 



                                       SENATE/HOUSE FILE       
                                       BY  (PROPOSED DEPARTMENT OF
                                            HUMAN SERVICES BILL)


    Passed Senate, Date               Passed House,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to child support recovery including assignment of
  2    support to the state relative to receipt of family investment
  3    program benefits, garnishment of money held by the state for a
  4    person who owes delinquent child support, the reporting of
  5    delinquent child support obligors to consumer reporting
  6    agencies, access to cellular telephone numbers for the purpose
  7    of the computer match program by the child support recovery
  8    unit, collection of support from certain obligors, the
  9    information included in a notice regarding the administrative
 10    levy of an account, and medical support of a child, and
 11    providing effective and retroactive applicability dates.
 12 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
 13 TLSB 5132DP 82
 14 pf/nh/5

PAG LIN



  1  1                           DIVISION I
  1  2        ASSIGNMENT OF CHILD SUPPORT == FAMILY INVESTMENT
  1  3                       PROGRAM RECIPIENTS
  1  4    Section 1.  Section 239B.6, subsections 1 and 2, Code 2007,
  1  5 are amended to read as follows:
  1  6    1.  An assignment of support rights to the department is
  1  7 created by either of the following:
  1  8    a.  An applicant and other persons covered by an
  1  9 application are deemed to have assigned to the department at
  1 10 the time of application all rights to periodic support
  1 11 payments that accrue during the period the family receives
  1 12 assistance to the extent of the amount of assistance received
  1 13 by the applicant and by other persons covered by the
  1 14 application.
  1 15    b.  A determination that a child or another person covered
  1 16 by an application is eligible for assistance under this
  1 17 chapter creates an assignment by operation of law to the
  1 18 department of all rights to periodic support payments that
  1 19 accrue during the period the family receives assistance not to
  1 20 exceed the amount of assistance received by the child and
  1 21 other persons covered by the application.
  1 22    2.  An assignment takes effect upon determination that an
  1 23 applicant or another person covered by an application is
  1 24 eligible for assistance under this chapter, applies to both
  1 25 current and accrued accruing support obligations, and
  1 26 terminates when an applicant or another person covered by an
  1 27 application ceases to receive assistance under this chapter,
  1 28 except with respect to the amount of unpaid support
  1 29 obligations accrued under during the assignment.  If an
  1 30 applicant or another person covered by an application ceases
  1 31 to receive assistance under this chapter and the applicant or
  1 32 other person covered by the application receives a periodic
  1 33 support payment, subject to limitations under federal law and
  1 34 subject to subsection 2A, the department is entitled only to
  1 35 that amount of the periodic support payment above the current
  2  1 periodic support obligation.
  2  2    Sec. 2.  Section 239B.6, Code 2007, is amended by adding
  2  3 the following new subsection:
  2  4    NEW SUBSECTION.  2A.  Any rights to support payments
  2  5 assigned to the department on or before September 30, 2009,
  2  6 shall remain assigned to the department.
  2  7    Sec. 3.  Section 252A.13, Code 2007, is amended to read as
  2  8 follows:
  2  9    252A.13  RECIPIENTS OF PUBLIC ASSISTANCE == ASSIGNMENT OF
  2 10 SUPPORT PAYMENTS.
  2 11    1.  If public assistance is provided by the department of
  2 12 human services to or on behalf of a dependent child or a
  2 13 dependent child's caretaker, there is an assignment by
  2 14 operation of law to the department of any and all rights in,
  2 15 title to, and interest in any support obligation, payment, and
  2 16 arrearages owed to or on behalf of the child or caretaker not
  2 17 to exceed the amount of public assistance paid for or on
  2 18 behalf of the child or caretaker as follows:
  2 19    a.  For family investment program assistance, section
  2 20 239B.6 shall apply.
  2 21    b.  For foster care services, section 234.39 shall apply.
  2 22    c.  For medical assistance, section 252E.11 shall apply.
  2 23    2.  The department shall immediately notify the clerk of
  2 24 court by mail when such child or caretaker has been determined
  2 25 to be eligible for public assistance.  Upon notification by
  2 26 the department, the clerk of court shall make a notation of
  2 27 the automatic assignment in the judgment docket and lien
  2 28 index.  The notation constitutes constructive notice of the
  2 29 assignment.  If the applicant for public assistance, for whom
  2 30 public assistance is approved and provided on or after July 1,
  2 31 1997, is a person other than a parent of the child, the
  2 32 department shall send notice of the assignment by regular mail
  2 33 to the last known addresses of the obligee and obligor.  The
  2 34 clerk of court shall forward support payments received
  2 35 pursuant to section 252A.6, to which the department is
  3  1 entitled, to the department, unless the court has ordered the
  3  2 payments made directly to the department under that section.
  3  3 The department may secure support payments in default through
  3  4 other proceedings.
  3  5    3.  The clerk shall furnish the department with copies of
  3  6 all orders or decrees awarding and temporary domestic abuse
  3  7 orders addressing support when the parties are receiving
  3  8 public assistance or services are otherwise provided by the
  3  9 child support recovery unit.  Unless otherwise specified in
  3 10 the order, an equal and proportionate share of any child
  3 11 support awarded is presumed to be payable on behalf of each
  3 12 child, subject to the order or judgment, for purposes of an
  3 13 assignment under this section.
  3 14    Sec. 4.  Section 252C.2, subsection 1, Code 2007, is
  3 15 amended to read as follows:
  3 16    1.  If public assistance is provided by the department to
  3 17 or on behalf of a dependent child or a dependent child's
  3 18 caretaker, there is an assignment by operation of law to the
  3 19 department of any and all right in, title to, and interest in
  3 20 any support obligation, payment, and arrearages owed to or for
  3 21 the child or caretaker up to the amount of public assistance
  3 22 paid for or on behalf of the child or caretaker.  Unless
  3 23 otherwise specified in the order, an equal and proportionate
  3 24 share of any child support awarded is presumed to be payable
  3 25 on behalf of each child subject to the order or judgment for
  3 26 purposes of an assignment under this section.  For family
  3 27 investment program assistance, section 239B.6 shall apply.
  3 28    Sec. 5.  Section 598.34, Code 2007, is amended to read as
  3 29 follows:
  3 30    598.34  RECIPIENTS OF PUBLIC ASSISTANCE == ASSIGNMENT OF
  3 31 SUPPORT PAYMENTS.
  3 32    1.  If public assistance is provided by the department of
  3 33 human services to or on behalf of a dependent child or a
  3 34 dependent child's caretaker, there is an assignment by
  3 35 operation of law to the department of any and all rights in,
  4  1 title to, and interest in any support obligation, payment, and
  4  2 arrearages owed to or for the child or caretaker not to exceed
  4  3 the amount of public assistance paid for or on behalf of the
  4  4 child or caretaker as follows:
  4  5    a.  For family investment program assistance, section
  4  6 239B.6 shall apply.
  4  7    b.  For foster care services, section 234.39 shall apply.
  4  8    c.  For medical assistance, section 252E.11 shall apply.
  4  9    2.  The department shall immediately notify the clerk of
  4 10 court by mail when such a child or caretaker has been
  4 11 determined to be eligible for public assistance.  Upon
  4 12 notification by the department, the clerk of court shall make
  4 13 a notation of the automatic assignment in the judgment docket
  4 14 and lien index.  The notation constitutes constructive notice
  4 15 of the assignment.  For public assistance approved and
  4 16 provided on or after July 1, 1997, if the applicant for public
  4 17 assistance is a person other than a parent of the child, the
  4 18 department shall send a notice by regular mail to the last
  4 19 known addresses of the obligee and obligor.  The clerk of
  4 20 court shall forward support payments received pursuant to
  4 21 section 598.22, to which the department is entitled, to the
  4 22 department, which may secure support payments in default
  4 23 through other proceedings.
  4 24    3.  The clerk shall furnish the department with copies of
  4 25 all orders or decrees and temporary or domestic abuse orders
  4 26 addressing support when the parties are receiving public
  4 27 assistance or services are otherwise provided by the child
  4 28 support recovery unit pursuant to chapter 252B.  Unless
  4 29 otherwise specified in the order, an equal and proportionate
  4 30 share of any child support awarded shall be presumed to be
  4 31 payable on behalf of each child subject to the order or
  4 32 judgment for purposes of an assignment under this section.
  4 33    Sec. 6.  Section 600B.38, Code 2007, is amended to read as
  4 34 follows:
  4 35    600B.38  RECIPIENTS OF PUBLIC ASSISTANCE == ASSIGNMENT OF
  5  1 SUPPORT PAYMENTS.
  5  2    1.  If public assistance is provided by the department of
  5  3 human services to or on behalf of a dependent child or a
  5  4 dependent child's caretaker, there is an assignment by
  5  5 operation of law to the department of any and all rights in,
  5  6 title to, and interest in any support obligation, payment, and
  5  7 arrearages owed to or on behalf of the child or caretaker, not
  5  8 to exceed the amount of public assistance paid for or on
  5  9 behalf of the child or caretaker as follows:
  5 10    a.  For family investment program assistance, section
  5 11 239B.6 shall apply.
  5 12    b.  For foster care services, section 234.39 shall apply.
  5 13    c.  For medical assistance, section 252E.11 shall apply.
  5 14    2.  The department shall immediately notify the clerk of
  5 15 court by mail when such a child or caretaker has been
  5 16 determined to be eligible for public assistance.  Upon
  5 17 notification by the department, the clerk of court shall make
  5 18 a notation of the automatic assignment in the judgment docket
  5 19 and lien index.  The notation constitutes constructive notice
  5 20 of the assignment.  For public assistance approved and
  5 21 provided on or after July 1, 1997, if the applicant for public
  5 22 assistance is a person other than a parent of the child, the
  5 23 department shall send notice by regular mail to the last known
  5 24 addresses of the obligee and obligor.  The clerk of court
  5 25 shall forward support payments received pursuant to section
  5 26 600B.25, to which the department is entitled, to the
  5 27 department, which may secure support payments in default
  5 28 through other proceedings.
  5 29    3.  The clerk shall furnish the department with copies of
  5 30 all orders or decrees and temporary or domestic abuse orders
  5 31 addressing support when the parties are receiving public
  5 32 assistance or services are otherwise provided by the child
  5 33 support recovery unit.  Unless otherwise specified in the
  5 34 order, an equal and proportionate share of any child support
  5 35 awarded shall be presumed to be payable on behalf of each
  6  1 child subject to the order or judgment for purposes of an
  6  2 assignment under this section.
  6  3    Sec. 7.  EFFECTIVE DATE.  This division of this Act takes
  6  4 effect October 1, 2009.
  6  5                           DIVISION II
  6  6        GARNISHMENT == MONEYS HELD BY STATE == DELINQUENT
  6  7                        SUPPORT OBLIGORS
  6  8    Sec. 8.  Section 642.2, subsection 4, Code 2007, is amended
  6  9 to read as follows:
  6 10    4.  Notwithstanding subsections 2, 3, and 6, and 7 any
  6 11 moneys owed to the child support obligor by the state and
  6 12 payments owed to the child support obligor through the Iowa
  6 13 public employees' retirement system are subject to
  6 14 garnishment, attachment, execution, or assignment by the child
  6 15 support recovery unit if the child support recovery unit is
  6 16 providing enforcement services pursuant to chapter 252B.
  6 17                          DIVISION III
  6 18         CONSUMER REPORTING AGENCIES == REQUIREMENTS FOR
  6 19        RECEIPT AND USE OF DELINQUENT SUPPORT INFORMATION
  6 20    Sec. 9.  Section 252B.9, subsection 3, Code 2007, is
  6 21 amended by adding the following new paragraph:
  6 22    NEW PARAGRAPH.  j.  The unit may provide information
  6 23 regarding delinquent obligors as provided in 42 U.S.C. }
  6 24 666(a)(7) to a consumer reporting agency if all the following
  6 25 apply:
  6 26    (1)  The agency provides the unit with satisfactory
  6 27 evidence that it is a consumer reporting agency as defined in
  6 28 15 U.S.C. } 1681a(f) and meets all the following requirements:
  6 29    (a)  Compiles and maintains files on consumers on a
  6 30 nationwide basis as provided in 15 U.S.C. } 1681a(p).
  6 31    (b)  Participates jointly with other nationwide consumer
  6 32 reporting agencies in providing annual free credit reports to
  6 33 consumers upon request through a centralized source as
  6 34 required by the federal trade commission in 16 C.F.R. } 610.2.
  6 35    (2)  The agency has entered into an agreement with the unit
  7  1 regarding receipt and use of the information.
  7  2                           DIVISION IV
  7  3             CELLULAR TELEPHONE NUMBERS == AVAILABLE
  7  4                 TO CHILD SUPPORT RECOVERY UNIT
  7  5    Sec. 10.  Section 252B.9, subsection 1, paragraph d,
  7  6 subparagraph (2), Code 2007, is amended to read as follows:
  7  7    (2)  Certain records held by public utilities, cable or
  7  8 other television companies, cellular telephone companies, and
  7  9 internet service providers with respect to individuals who owe
  7 10 or are owed support, or against or with respect to whom a
  7 11 support obligation is sought, consisting of the names and
  7 12 addresses of such individuals and the names and addresses of
  7 13 the employers of such individuals, as appearing in customer
  7 14 records, and including the cellular telephone numbers of such
  7 15 individuals appearing in the customer records of cellular
  7 16 telephone companies.  If the records are maintained in
  7 17 automated databases, the unit shall be provided with automated
  7 18 access.
  7 19                           DIVISION V
  7 20           SPECIFIED INCOME PROVIDERS == ESTABLISHMENT
  7 21                OF ACCOUNTS FOR SUPPORT PAYMENTS
  7 22    Sec. 11.  NEW SECTION.  252B.28  ORDER FOR ESTABLISHMENT OF
  7 23 ACCOUNT.
  7 24    1.  This section shall apply to any income provider listed
  7 25 in subsection 2 if, at the time notice is served, support
  7 26 payments as defined in section 252D.16 are delinquent in an
  7 27 amount equal to the payment for one month.
  7 28    2.  This section shall apply to any of the following income
  7 29 providers:
  7 30    a.  A self=employed obligor.  As used in this section,
  7 31 "self=employed" means earning at least a portion of the
  7 32 individual's livelihood directly from the individual's own
  7 33 business, trade, or profession rather than as a specified
  7 34 salary or wages from an employer.
  7 35    b.  A partnership, limited liability company, corporation,
  8  1 or other association or business entity from which an obligor
  8  2 receives compensation in the form of wages, salary,
  8  3 commissions, bonuses, or other income, if the obligor is a
  8  4 partner, member, owner, or officer of the entity.
  8  5    c.  A partnership, limited liability company, corporation,
  8  6 or other association or business entity from which a person
  8  7 specified in paragraph "b" receives compensation in the form
  8  8 of wages, salary, commissions, bonuses, or other income.  As
  8  9 used in this section, "person" means the same as defined in
  8 10 section 4.1.
  8 11    3.  Upon motion filed by the child support recovery unit
  8 12 and notice, the district court may order an income provider
  8 13 specified under subsection 2 to establish a bank or other
  8 14 financial institution account for the sole purpose of
  8 15 obtaining support payments owed by the obligor.  Notice shall
  8 16 be served on the obligor or other income provider by regular
  8 17 mail and proof of service completed according to rule of civil
  8 18 procedure 1.442.  If a hearing is not requested within ten
  8 19 days of service of the notice, the court may enter an order
  8 20 under this subsection.  The order shall specify the amount of
  8 21 the compensation that is to be deposited into such account and
  8 22 the frequency with which such deposits are to be made, whether
  8 23 weekly, biweekly, semimonthly, or monthly.  Within ten days of
  8 24 the issuance of the order under this subsection, the income
  8 25 provider shall provide the unit with written authorization for
  8 26 the unit to receive from such account, by automatic
  8 27 withdrawal, the amount ordered to be deposited into such
  8 28 account.  The court may provide a method for timely increase
  8 29 or decrease of the amounts to be deposited or withdrawn and
  8 30 shall specify the duration of the order.  The order shall be
  8 31 subject to modification due to a change in the amount of the
  8 32 support order or a delinquency, or if the unit will no longer
  8 33 be providing services under this chapter.
  8 34    4.  Failure to establish the account or to deposit the
  8 35 required amount into the account or to authorize automatic
  9  1 withdrawal of the required amount by the unit is failure to
  9  2 comply with an order entered under subsection 3, which shall
  9  3 be punishable as contempt.
  9  4    5.  This section shall be construed to furnish an
  9  5 additional remedy and shall in no way affect or impair any
  9  6 other remedy, civil or criminal, provided in any other statute
  9  7 and available to the unit in relation to the same subject
  9  8 matter, and shall not relieve an income provider of a duty
  9  9 under any other chapter.
  9 10                           DIVISION VI
  9 11          OBLIGOR SOCIAL SECURITY NUMBER == NOTICE FORM
  9 12    Sec. 12.  Section 252I.6, subsection 2, paragraph a, Code
  9 13 2007, is amended to read as follows:
  9 14    a.  The name and social security number of the obligor.
  9 15                          DIVISION VII
  9 16                         MEDICAL SUPPORT
  9 17    Sec. 13.  Section 252E.1A, subsection 2, paragraph a,
  9 18 subparagraphs (1) and (2), as enacted by 2007 Iowa Acts,
  9 19 chapter 218, section 164, are amended to read as follows:
  9 20    (1)  The premium cost for a child to the parent ordered to
  9 21 provide the plan does not exceed five percent of that parent's
  9 22 gross income or the child support guidelines established
  9 23 pursuant to section 598.21B specifically provide an
  9 24 alternative income=based numeric standard for determining the
  9 25 reasonable cost of the premium, in which case the reasonable
  9 26 cost of the premium as determined by the standard specified by
  9 27 the child support guidelines shall apply.
  9 28    (2)  The premium cost for a child exceeds five percent of
  9 29 the gross income of the parent ordered to provide the plan the
  9 30 amount specified in subparagraph (1) and that parent consents
  9 31 or does not object to entry of that order.
  9 32    Sec. 14.  Section 252E.1A, subsection 3, as enacted by 2007
  9 33 Iowa Acts, chapter 218, section 164, is amended to read as
  9 34 follows:
  9 35    3.  If a health benefit plan is not available at the time
 10  1 of the entry of the order, the court shall order a reasonable
 10  2 monetary amount in lieu of a health benefit plan, which amount
 10  3 shall be stated in the order.  For purposes of this
 10  4 subsection, a reasonable amount means five percent of the
 10  5 gross income of the parent ordered to provide the monetary
 10  6 amount for medical support or if the child support guidelines
 10  7 established pursuant to section 598.21B specifically provide
 10  8 an alternative income=based numeric standard for determining
 10  9 the reasonable amount, a reasonable amount means the amount as
 10 10 determined by the standard specified by the child support
 10 11 guidelines.  This subsection shall not apply in any of the
 10 12 following circumstances:
 10 13    a.  If the parent's monthly support obligation established
 10 14 pursuant to the child support guidelines prescribed by the
 10 15 supreme court pursuant to section 598.21B is the minimum
 10 16 obligation amount.  If this paragraph applies, the court shall
 10 17 order the parent to provide a health benefit plan when a plan
 10 18 becomes available for which there is no premium cost for a
 10 19 child to the parent.
 10 20    b.  If subsection 7, paragraph "d", "e", or "f" applies.
 10 21    Sec. 15.  Section 252E.1A, subsection 6, as enacted by 2007
 10 22 Iowa Acts, chapter 218, section 164, is amended to read as
 10 23 follows:
 10 24    6.  An order, decree, or judgment entered before March 1,
 10 25 2008 July 1, 2009, that provides for the support of a child
 10 26 may be modified in accordance with this section.
 10 27    Sec. 16.  Section 252E.1A, subsection 7, as enacted by 2007
 10 28 Iowa Acts, chapter 218, section 164, is amended by adding the
 10 29 following new paragraph:
 10 30    NEW PARAGRAPH.  f.  If a health benefit plan is not
 10 31 available, and the noncustodial parent is receiving assistance
 10 32 or is residing with any child receiving assistance as provided
 10 33 in section 252E.2A, subsection 1, paragraph "c", subparagraph
 10 34 (3) or (4), the unit shall seek an order that the noncustodial
 10 35 parent shall provide a health benefit plan when a plan becomes
 11  1 available for which there is no premium cost for a child to
 11  2 the parent.
 11  3    Sec. 17.  Section 252E.2A, subsection 1, paragraph b, as
 11  4 enacted by 2007 Iowa Acts, chapter 218, section 165, is
 11  5 amended to read as follows:
 11  6    b.  The unit is notified that the conditions of paragraph
 11  7 "c" are met and there is a pending action to establish or
 11  8 modify support initiated by the unit, or the parent ordered to
 11  9 provide medical support submits a written statement to the
 11 10 unit that the requirements of paragraph "c" are met.
 11 11    Sec. 18.  Section 252E.2A, subsection 1, paragraph c,
 11 12 unnumbered paragraph 1, as enacted by 2007 Iowa Acts, chapter
 11 13 218, section 165, is amended to read as follows:
 11 14    The parent ordered to provide medical support or the parent
 11 15 from whom the unit is seeking to establish or modify medical
 11 16 support meets at least one of the following conditions:
 11 17    Sec. 19.  Section 252E.2A, subsection 5, as enacted by 2007
 11 18 Iowa Acts, chapter 218, section 165, is amended to read as
 11 19 follows:
 11 20    5.  An order, decree, or judgment entered or pending on or
 11 21 before March 1, 2008 July 1, 2009, that provides for the
 11 22 support of a child may be satisfied as provided in this
 11 23 section.
 11 24    Sec. 20.  2007 Iowa Acts, chapter 218, section 187, is
 11 25 amended to read as follows:
 11 26    SEC. 187.  EFFECTIVE DATE.  This division of this Act takes
 11 27 effect March 1, 2008 July 1, 2009.
 11 28    Sec. 21.  CHILD SUPPORT RECOVERY == MEDICAL SUPPORT.
 11 29 Notwithstanding chapter 252C, 252F, or 252H, or any other
 11 30 applicable chapter, either parent may be ordered to provide
 11 31 medical support in accordance with the federal Deficit
 11 32 Reduction Act of 2005, Pub. L. No. 109=171.
 11 33    Sec. 22.  EFFECTIVE DATE == RETROACTIVE APPLICABILITY.
 11 34 This division of this Act, being deemed of immediate
 11 35 importance, takes effect upon enactment and is retroactively
 12  1 applicable to March 1, 2008.
 12  2                           EXPLANATION
 12  3    Division I of this bill relates to the assignment of
 12  4 support payments to the department under the family investment
 12  5 program.  The federal Deficit Reduction Act of 2005 provides
 12  6 that families who begin receiving family investment program
 12  7 benefits on or after October 1, 2009, are only subject to
 12  8 assignment to the state of child support that becomes due
 12  9 during the period they are receiving FIP benefits.  The bill
 12 10 makes corresponding changes relating to such assignment and
 12 11 retains the provision that the amount of the assigned child
 12 12 support cannot exceed the amount of FIP benefits paid to the
 12 13 family.  The bill also provides that any rights to support
 12 14 payments assigned to the department on or before September 30,
 12 15 2009, shall remain assigned to the department.  The division
 12 16 takes effect October 1, 2009.
 12 17    Division II of the bill provides that if the state is
 12 18 holding money for a person who owes delinquent child support,
 12 19 whether or not the person is a state employee, the money may
 12 20 be garnished to pay the child support.
 12 21    Division III of the bill provides for the provision of
 12 22 information regarding delinquent child support obligors as
 12 23 required by federal law to consumer reporting agencies and
 12 24 specifies the requirements that a consumer reporting agency
 12 25 must meet regarding the receipt and use of the information.
 12 26    Division IV of the bill provides that in addition to name
 12 27 and address information already provided to the child support
 12 28 recovery unit by public utilities, cable or other television
 12 29 companies, and cellular telephone companies with respect to
 12 30 individuals who owe or are owed support, or against or with
 12 31 respect to whom a support obligation is sought, the cellular
 12 32 telephone numbers of such individuals appearing in the
 12 33 customer records of cellular telephone companies shall also be
 12 34 available to the child support recovery unit for purposes of
 12 35 the computer match program.
 13  1    Division V of the bill authorizes the district court to
 13  2 order certain income providers to establish a bank or other
 13  3 financial institution account for the sole purpose of
 13  4 obtaining child support payments if at the time notice is
 13  5 served, support payments from an obligor are delinquent in an
 13  6 amount equal to the payment for one month.  Division V of the
 13  7 bill defines the income providers as self=employed obligors; a
 13  8 partnership, limited liability company, corporation, or other
 13  9 association or business entity from which an obligor receives
 13 10 compensation in the form of wages, salary, commissions,
 13 11 bonuses, or other income, if the obligor is a partner, member,
 13 12 owner, or officer of the entity; and a partnership, limited
 13 13 liability company, corporation, or other association or
 13 14 business entity from which a person receives compensation in
 13 15 the form of wages, salary, commissions, bonuses, or other
 13 16 income.  Division V of the bill provides the process for the
 13 17 unit to file a motion and provide notice to an income provider
 13 18 to establish the account for the sole purpose of obtaining
 13 19 support payments.  If a hearing is not requested, the court
 13 20 may enter an order specifying the amount of the compensation
 13 21 that is to be deposited into the account and the frequency
 13 22 with which the deposits are to be made.  Within 10 days of the
 13 23 issuance of the order, the income provider is required to
 13 24 provide the unit with written authorization for the unit to
 13 25 receive from such account, by automatic withdrawal, the amount
 13 26 ordered to be deposited into the account.  The order is
 13 27 subject to modification due to a change in the amount of the
 13 28 support order or a delinquency, or if the unit will no longer
 13 29 be providing services.  Failure to comply with the order is
 13 30 punishable as contempt.  Division V of the bill provides that
 13 31 the provisions of the bill are to be construed to furnish an
 13 32 additional remedy and shall in no way affect or impair any
 13 33 other remedy, civil or criminal, provided in any other statute
 13 34 and available to the unit in relation to the same subject
 13 35 matter, and shall not relieve an income provider of a duty
 14  1 under any other Code chapter.
 14  2    Division VI of the bill eliminates the requirement for the
 14  3 child support recovery unit to include the obligor's social
 14  4 security number on the notice form regarding the
 14  5 administrative levy of an account of the parent who owes
 14  6 delinquent child support.
 14  7    Division VII of the bill delays, until July 1, 2009,
 14  8 changes enacted in Iowa law, based upon the federal Deficit
 14  9 Reduction Act of 2005 regarding medical support, which would
 14 10 have taken effect March 1, 2008.  Division VII of the bill
 14 11 also makes changes in these medical support provisions to
 14 12 allow for the determination of the amount of the reasonable
 14 13 cost a parent is to pay for medical support to be either an
 14 14 amount which is 5 percent of a parent's gross income, or, if
 14 15 the child support guidelines specify an income=based standard
 14 16 for determining the reasonable amount, the amount determined
 14 17 by the guidelines.  Division VII of the bill also allows the
 14 18 court an alternative means of ordering medical support for a
 14 19 parent with low income.  Division VII of the bill amends
 14 20 current law to eliminate references to pending actions to
 14 21 provide that the new provisions relating to medical support
 14 22 orders only apply if there is an existing order.  Division VII
 14 23 of the bill provides that, notwithstanding any existing law to
 14 24 the contrary, either parent may be ordered to provide medical
 14 25 support in accordance with the federal Deficit Reduction Act
 14 26 of 2005.
 14 27 LSB 5132DP 82
 14 28 pf/nh/5.1