72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 902
A-Engrossed
House Bill 2110
Ordered by the House March 25
Including House Amendments dated March 25
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Attorney General Hardy
Myers for Department of Justice)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
Modifies application of definitions. Permits Department of
Justice to suspend support enforcement when custody of child
changes. Adjusts certain duties between Department of Justice and
Department of Human Services. Revises requirements for income
withholding. Requires notice to Department of Justice of certain
child support proceedings. Specifies method of service of certain
documents. Clarifies circumstances when state may be assigned
support rights of child. { + Requires Department of Human
Services to notify obligor and obligee of intent to refer case to
Department of Revenue to garnish tax refund. + }
A BILL FOR AN ACT
Relating to administration of child support program; creating new
provisions; and amending ORS 23.160, 25.010, 25.125, 25.372,
25.396, 25.414, 25.610, 109.103, 416.425, 419B.406, 419C.597
and 657.855.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 23.160 is amended to read:
23.160. (1) All property, including franchises, or rights or
interest therein, of the judgment debtor, shall be liable to an
execution, except as provided in this section and in other
statutes granting exemptions from execution. If selected and
reserved by the judgment debtor or the agent of the judgment
debtor at the time of the levy, or as soon thereafter before sale
thereof as the same shall be known to the judgment debtor, the
following property, or rights or interest therein of the judgment
debtor, except as provided in ORS 23.220, shall be exempt from
execution:
(a) Books, pictures and musical instruments to the value of
$600.
(b) Wearing apparel, jewelry and other personal items to the
value of $1,800.
(c) The tools, implements, apparatus, team, harness or library,
necessary to enable the judgment debtor to carry on the trade,
occupation or profession by which the judgment debtor habitually
earns a living, to the value of $3,000.
(d) A vehicle to the value of $1,700. As used in this paragraph
'vehicle' includes an automobile, truck, trailer, truck and
trailer or other motor vehicle.
(e) Domestic animals and poultry kept for family use, to the
total value of $1,000 and food sufficient to support such animals
and poultry for 60 days.
(f) Household goods, furniture, radios, a television set and
utensils all to the total value of $3,000, if the judgment debtor
holds the property primarily for the personal, family or
household use of the judgment debtor; provisions actually
provided for family use and necessary for the support of a
householder and family for 60 days and also 60 days' supply of
fuel.
(g) All property of the state or any county or incorporated
city therein, or of any other public or municipal corporation of
like character.
(h) All professionally prescribed health aids for the debtor or
a dependent of the debtor.
(i) Spousal support, child support, or separate maintenance to
the extent reasonably necessary for the support of the debtor and
any dependent of the debtor.
(j) The debtor's right to receive, or property that is
traceable to, an award under any crime victim reparation law.
(k) The debtor's right to receive, or property that is
traceable to, a payment or payments, not to exceed a total of
$10,000, on account of personal bodily injury of the debtor or an
individual of whom the debtor is a dependent.
(L) The debtor's right to receive, or property that is
traceable to, a payment in compensation of loss of future
earnings of the debtor or an individual of whom the debtor is or
was a dependent, to the extent reasonably necessary for the
support of the debtor and any dependent of the debtor.
(m) Veterans' benefits and loans.
(n) The debtor's right to receive an earned income tax credit
under the federal tax laws and any moneys that are traceable to a
payment of an earned income tax credit under the federal tax
laws.
(o) The debtor's interest, not to exceed $400 in value, in any
personal property. However, this exemption may not be used to
increase the amount of any other exemption.
(2) If the property selected or reserved by the judgment debtor
as exempt is adjudicated by the court out of which the execution
issued to be of a value in excess of that allowed by the
appropriate paragraph of subsection (1) of this section, the
officer making the levy shall proceed to sell such property. Out
of the proceeds of such sale, the officer shall deduct costs of
sale and shall pay to the judgment debtor an amount equivalent to
the value declared to be exempt by any of the paragraphs of
subsection (1) of this section and shall apply the balance of the
proceeds of sale on the execution. No sale shall be made under
such execution unless the highest bid made exceeds the
appropriate exemption claimed and allowed plus costs of sale. If
no bid is received in excess of the value allowed by the
appropriate paragraph of subsection (1) of this section, the
costs of sale shall be borne by the judgment creditor.
(3) If two or more members of a household are judgment debtors,
each judgment debtor shall be entitled to claim the exemptions in
subsection (1)(a), (b), (c), (d), (j), (k) and (L) of this
section in the same or different properties. The exemptions when
claimed for the same property shall be combined at the option of
the debtors.
(4) Notwithstanding any other provision of law { + except ORS
657.855 + }, if a writ of garnishment or other execution is
issued to collect past due support as defined in ORS 18.600, 75
percent of unemployment compensation benefits, workers'
compensation benefits and other benefits paid to the debtor by
the United States, by the state or by a political subdivision of
the state are exempt. { + The exemption related to unemployment
compensation benefits provided by this subsection is subject to
ORS 657.855. + } The exemption provided by this subsection
applies without regard to whether the payment is made on a
periodic basis or in a lump sum, including any lump sum payable
pursuant to a settlement or judgment. Notwithstanding subsection
(1)(k) of this section, if a payment is made under a settlement
or judgment on account of personal bodily injury and the
garnishment or other execution is issued to collect past due
support as defined in ORS 18.600, the lesser of 75 percent of the
payment or $7,500 is exempt.
SECTION 2. ORS 25.010 is amended to read:
25.010. As used in ORS chapters 25, 107, 109 { - , 110 - }
and 416 and any other statutes providing for support payments or
support enforcement procedures, unless the context requires
otherwise:
(1) 'Administrator' means either the Administrator of the
Division of Child Support of the Department of Justice or a
district attorney, or the administrator's or a district
attorney's authorized representative.
(2) 'Child support rights' means the right to establish or
enforce an obligation imposed or imposable by law to provide
support, including but not limited to medical support and an
unsatisfied obligation to provide support.
(3) 'Department' means the Department of Justice.
(4) 'Disposable income' means that part of the income of an
individual remaining after the deduction from the income of any
amounts required to be withheld by law except laws enforcing
spousal or child support and any amounts withheld to pay medical
or dental insurance premiums.
(5) 'Employer' means any entity or individual who engages an
individual to perform work or services for which compensation is
given in periodic payments or otherwise.
(6) 'Income' is any monetary obligation in excess of $4.99
after the fee described in ORS 25.414 (6) has been deducted that
is in the possession of a third party owed to an obligor and
includes but is not limited to:
(a) Compensation paid or payable for personal services whether
denominated as wages, salary, commission, bonus or otherwise;
(b) Periodic payments pursuant to a pension or retirement
program;
(c) Cash dividends arising from stocks, bonds or mutual funds;
(d) Interest payments;
(e) Periodic payments from a trust account;
(f) Any program or contract to provide substitute wages during
times of unemployment or disability;
(g) Any payment pursuant to ORS chapter 657; or
(h) Amounts payable to independent contractors.
(7) 'Obligee' means a child or caretaker parent or custodian,
spouse, former spouse or other dependent person for whose benefit
a court or the administrator has ordered a payment of support.
(8) 'Obligor' means any person who has been ordered by a court
or the administrator to make payments for the support of a child
or a caretaker parent or custodian, spouse, former spouse or
other dependent person.
(9) 'Order to withhold' means an order or other legal process
that requires a withholder to withhold support from the income of
an obligor.
(10) 'Withholder' means any person who disburses income and
includes but is not limited to an employer, conservator, trustee
or insurer of the obligor.
SECTION 3. ORS 25.125 is amended to read:
25.125. (1) The Department of { - Human Services - }
{ + Justice + } may return moneys to an obligor when the
department determines that the obligor has paid more moneys than
are due under a support obligation. However, when the obligor has
an ongoing support obligation, the department may give the
obligor credit for the excess amount paid and apply the credit to
the future support obligation until the credit is fully used.
When the department applies a credit to offset a future support
obligation, the department shall so notify the obligee. The
notice must inform the obligee that, if the obligee requests, the
department will conduct an administrative review to determine if
the record keeping and accounting related to the calculation of
the credit balance is correct. The department shall conduct the
administrative review within 30 days after receiving the request.
(2) An overpayment in favor of the state is created when the
Department { + of Justice + }, under ORS 25.020, has transmitted
moneys received from an obligor to an obligee or a collection
agency, a child support agency of another state or an agency of
this state and:
(a) The amount transmitted is more than the support obligation
requires and the Department { + of Justice + } has returned the
excess to the obligor under subsection (1) of this section;
(b) The Department { + of Justice + } has misapplied moneys
received; or
(c) The amount transmitted is attributable in whole or in part
to a tax refund offset collection all or part of which has been
taken back by the Internal Revenue Service or the Department of
Revenue.
(3)(a) The obligee or the agency to whom the moneys were
transmitted owes the amount of the overpayment to the state. The
Department of { - Human Services - } { + Justice shall + }:
(A) { - Shall - } Attempt to recover the overpayment if it
is cost-effective to do so;
(B) { - Shall - } Notify the obligee or the agency to whom
the overpayment was made that the obligee or agency owes money to
the state and specify the amount of the overpayment to be
returned to the department; and
(C) { - Shall - } Give the obligee opportunity to object.
(b) If the obligee does not file a timely written objection,
the overpayment amount determined by the department is final and
the provisions of subsection (4) of this section apply. If the
department does not resolve an objection to an obligee's
satisfaction, a { - hearings - } { + hearing + } officer
{ - of the department - } { + assigned from the Hearing Officer
Panel established under section 3, chapter 849, Oregon Laws
1999, + } shall hear the objection. An order by the
{ - hearings - } { + hearing + } officer is final. An obligee
may appeal the decision of a { - hearings - } { + hearing + }
officer to the circuit court for a hearing de novo.
(c) Notwithstanding paragraph (a) of this subsection, if an
agency of this or another state owes the overpayment, the agency
shall return the amount of the overpayment to the department
without notice and opportunity to object.
(4) The amount of the overpayment specified in subsection
(3)(a) of this section is a liquidated debt and a delinquent
amount owed to the state. The Department { + of Justice + }may
recover the debt by obtaining from the obligee a voluntary
assignment of a portion of future support payments to be applied
to the debt or in any other way permitted by law.
(5)(a) In addition to the debt created under subsection (2) of
this section, a debt in favor of the state is created when:
(A) The Department { + of Justice + } receives a check for
support amounts due from an obligor or withholder subject to an
order to withhold under this chapter;
(B) The Department { + of Justice + } transmits the amount to
the obligee, a child support agency of another state or an agency
of this state; and
(C) The check is dishonored.
(b) When a debt is created under paragraph (a) of this
subsection, the obligor or withholder who presented the check
owes the amount of money specified on the check to the state.
(c) The Department { + of Justice + } shall:
(A) Attempt to recover the debt if it is cost-effective to do
so;
(B) Notify the obligor or withholder who presented the check
that the obligor or withholder owes the money to the state; and
(C) Specify the amount of the debt to be paid to the
department.
(d) The amount of the debt specified in paragraph (c) of this
subsection is a liquidated debt and a delinquent amount owed to
the state. The Department { + of Justice + } may recover the
debt in any way permitted under law.
(6)(a) When a motion has been filed to terminate, vacate or set
aside a support order or to modify a support order { - to
zero - } { + because of a change in physical custody of the
child + }, the
{ - department - } { + administrator + } may suspend
enforcement of the support order if:
(A) Collection of support would result in a credit balance if
the motion were granted; { - or - } { + and + }
{ - (B) The order is being terminated or modified to zero
because the obligor has physical custody of the child. - }
{ - (b) When enforcement is to be suspended under this
subsection, the obligee shall be notified and may object on the
basis that the child is not in the physical custody of the
obligor or that the obligee has not consented to the child being
in the physical custody of the obligor. When the obligee files an
objection under this paragraph, the department may not suspend
enforcement. - }
{ + (B) The obligee does not object to suspending enforcement
of the support order.
(b) The obligee may object under this subsection only on the
grounds that:
(A) The child is not in the physical custody of the obligor;
(B) The child is in the physical custody of the obligor without
the consent of the obligee; or
(C) A credit balance would not result if the motion were
granted. + }
(c) As used in this subsection, 'credit balance' means that
payments have been made in excess of all amounts owed by an
obligor for ongoing and past due child support.
(7) The Department { + of Human Services + } shall adopt rules
to carry out the provisions of this section.
SECTION 4. ORS 25.125, as amended by section 3 of this 2003
Act, is amended to read:
25.125. (1) The Department of Justice may return moneys to an
obligor when the department determines that the obligor has paid
more moneys than are due under a support obligation. However,
when the obligor has an ongoing support obligation, the
department may give the obligor credit for the excess amount paid
and apply the credit to the future support obligation until the
credit is fully used. When the department applies a credit to
offset a future support obligation, the department shall so
notify the obligee. The notice must inform the obligee that, if
the obligee requests, the department will conduct an
administrative review to determine if the record keeping and
accounting related to the calculation of the credit balance is
correct. The department shall conduct the administrative review
within 30 days after receiving the request.
(2) An overpayment in favor of the state is created when the
Department of Justice, under ORS 25.020, has transmitted moneys
received from an obligor to an obligee or a collection agency, a
child support agency of another state or an agency of this state
and:
(a) The amount transmitted is more than the support obligation
requires and the Department of Justice has returned the excess to
the obligor under subsection (1) of this section;
(b) The Department of Justice has misapplied moneys received;
or
(c) The amount transmitted is attributable in whole or in part
to a tax refund offset collection all or part of which has been
taken back by the Internal Revenue Service or the Department of
Revenue.
(3)(a) The obligee or the agency to whom the moneys were
transmitted owes the amount of the overpayment to the state. The
Department of Justice shall:
(A) Attempt to recover the overpayment if it is cost-effective
to do so;
(B) Notify the obligee or the agency to whom the overpayment
was made that the obligee or agency owes money to the state and
specify the amount of the overpayment to be returned to the
department; and
(C) Give the obligee opportunity to object.
(b) If the obligee does not file a timely written objection,
the overpayment amount determined by the department is final and
the provisions of subsection (4) of this section apply. If the
department does not resolve an objection to an obligee's
satisfaction, a hearing officer { - assigned from the Hearing
Officer Panel established under section 3, chapter 849, Oregon
Laws 1999, - } { + of the Employment Department + } shall hear
the objection. An order by the hearing officer is final. An
obligee may appeal the decision of a hearing officer to the
circuit court for a hearing de novo.
(c) Notwithstanding paragraph (a) of this subsection, if an
agency of this or another state owes the overpayment, the agency
shall return the amount of the overpayment to the department
without notice and opportunity to object.
(4) The amount of the overpayment specified in subsection
(3)(a) of this section is a liquidated debt and a delinquent
amount owed to the state. The Department of Justice may recover
the debt by obtaining from the obligee a voluntary assignment of
a portion of future support payments to be applied to the debt or
in any other way permitted by law.
(5)(a) In addition to the debt created under subsection (2) of
this section, a debt in favor of the state is created when:
(A) The Department of Justice receives a check for support
amounts due from an obligor or withholder subject to an order to
withhold under this chapter;
(B) The Department of Justice transmits the amount to the
obligee, a child support agency of another state or an agency of
this state; and
(C) The check is dishonored.
(b) When a debt is created under paragraph (a) of this
subsection, the obligor or withholder who presented the check
owes the amount of money specified on the check to the state.
(c) The Department of Justice shall:
(A) Attempt to recover the debt if it is cost-effective to do
so;
(B) Notify the obligor or withholder who presented the check
that the obligor or withholder owes the money to the state; and
(C) Specify the amount of the debt to be paid to the
department.
(d) The amount of the debt specified in paragraph (c) of this
subsection is a liquidated debt and a delinquent amount owed to
the state. The Department of Justice may recover the debt in any
way permitted under law.
(6)(a) When a motion has been filed to terminate, vacate or set
aside a support order or to modify a support order because of a
change in physical custody of the child, the administrator may
suspend enforcement of the support order if:
(A) Collection of support would result in a credit balance if
the motion were granted; and
(B) The obligee does not object to suspending enforcement of
the support order.
(b) The obligee may object under this subsection only on the
grounds that:
(A) The child is not in the physical custody of the obligor;
(B) The child is in the physical custody of the obligor without
the consent of the obligee; or
(C) A credit balance would not result if the motion were
granted.
(c) As used in this subsection, 'credit balance' means that
payments have been made in excess of all amounts owed by an
obligor for ongoing and past due child support.
(7) The Department of Human Services shall adopt rules to carry
out the provisions of this section.
SECTION 5. { + The amendments to ORS 25.125 by section 4 of
this 2003 Act become operative on June 30, 2005. + }
SECTION 6. ORS 25.372 is amended to read:
25.372. ORS 25.372 to 25.427 { - and the amendments to ORS
23.170, 23.175, 23.185 (1999 Edition), 25.010, 25.070, 25.381,
25.384, 29.145 (1999 Edition), 29.147 (1999 Edition), 29.411
(1999 Edition), 29.415 (1999 Edition), 109.015, 238.445, 409.021,
419B.408, 419C.600, 656.234, 657.780, 659.010 (1999 Edition) and
659.121 (1999 Edition) by sections 4 and 22 to 49, chapter 798,
Oregon Laws 1993, - } apply to current support, arrears and
interest on arrears, independently or combined, whether arrears
are owed to an obligee, the state or a foreign jurisdiction.
SECTION 7. ORS 25.396 is amended to read:
25.396. { - (1) An obligor who is subject to an order to
withhold issued under ORS 25.378 (1) may request that withholding
be discontinued or not initiated if: - }
{ - (a) All arrearages are paid in full; - }
{ - (b) The obligor has complied with the terms of a
previously allowed exemption from withholding; and - }
{ - (c)(A) The obligor and the obligee agree in writing to an
alternative arrangement; or - }
{ - (B) A court or the administrator makes a written finding
and explanation that there is good cause not to require the
withholding. - }
{ + (1) When a court or the administrator enters or modifies
a support order, the court or administrator may grant an
exception to income withholding required under ORS 25.378 if the
court or administrator makes a written finding that there is good
cause not to require income withholding. Good cause exists when
there is proof of timely payment of previously ordered support
and when initiating or continuing income withholding would not be
in the best interests of the child.
(2) The court or administrator may grant an exception to income
withholding required under ORS 25.378 if:
(a) The obligor and obligee at any time agree in writing to an
alternative payment method;
(b) When money is owed to the state under the support order,
the state agrees in writing to the alternative payment method;
(c) The obligor has paid in full all arrears accrued under the
support order;
(d) The obligor has complied with the terms of any previous
exception granted under this section; and
(e) The court or administrator accepts the alternative payment
method. + }
{ + (3) Notwithstanding subsection (1) of this section, when
child support is currently assigned to the Oregon Youth Authority
or the Department of Human Services, the state or the obligor may
request and the court or administrator may grant an exception
from income withholding if: + }
{ - (2)(a) The state or the obligor may request that
withholding be discontinued or not initiated if:
{ - (A) Child support is currently assigned to the Oregon
Youth Authority or the Department of Human Services; - }
{ - (B) - } { + (a) + } The order to withhold is a barrier
to reunification of the family or rehabilitation of the youth or
is prejudicial to the obligor's ability to provide for another
child to whom a duty of support is owed; and
{ - (C) - } { + (b) + } The state and the obligor
{ - enter into a written alternative payment agreement - } { +
agree in writing to an alternative payment method + }.
{ - (b) The administrator shall adopt rules and establish
procedures to implement this subsection. - }
{ - (3)(a) The entity to whom the state or an obligor makes a
request under subsection (1) or (2) of this section is: - }
{ - (A) The district attorney or the Division of Child
Support, whichever is appropriate, when support services are
being provided by the entity under ORS 25.080; or - }
{ - (B) In all other cases, the circuit court. - }
{ - (b) When the obligor is making a request concerning
withholding for spousal support, the obligor shall make the
request to the district attorney or Division of Child Support
only if the district attorney or Division of Child Support is
enforcing the spousal support order under ORS 25.080 (4)(c) or
(d). In all other cases, the obligor shall make the request to
the circuit court. - }
{ - (c) Appeal of a decision of the district attorney or the
Division of Child Support is to the circuit court for a hearing
under ORS 183.484. - }
{ - (4) If money is owed to the state under the support order
that is the subject of an agreement under subsection (1)(c)(A) of
this section, the state must also be a party to the written
agreement. The written agreement must be reviewed and entered in
the record by the court or administrator. - }
{ - (5) For purposes of subsection (1) of this section, good
cause exists when there is proof of timely payment of previously
ordered support in cases involving the modification of support
orders and there are no arrearages. - }
{ + (4) Exceptions to income withholding described in this
section may be granted by the administrator or the court, except
that when support enforcement services are being provided under
ORS 25.080 the only permissible alternative payment methods are
an electronic funds transfer to the Department of Justice or
another method permitted under rules adopted under this section.
(5) A party may appeal the administrator's decision granting or
denying an exception under this section to the circuit court in
accordance with ORS 183.484. + }
(6) { + Income + } withholding may be terminated only if the
conditions set forth in this section are met.
{ + (7) The Department of Human Services shall adopt rules
and establish procedures to implement this section. + }
SECTION 8. ORS 25.414 is amended to read:
25.414. (1) The withholder shall withhold from the obligor's
disposable monthly income, other than workers' compensation under
ORS chapter 656 or unemployment compensation under ORS chapter
657, the amount stated in the order to withhold. The entity
issuing the order to withhold shall compute this amount subject
to the following:
(a) If withholding is for current support only, the amount to
be withheld is the amount specified as current support in the
support order.
(b) If withholding is for current support and there is an
arrearage, the amount to be withheld is 120 percent of the amount
specified as current support in the support order.
(c) If withholding is only for arrearage, the amount to be
withheld is one of the following:
(A) The amount of the last ordered monthly support.
(B) If there is no last ordered monthly support amount, the
monthly support amount used to calculate the arrearage amount
specified in the order or judgment for arrearage.
(C) If there is no last ordered monthly support amount and if
there was no monthly support amount, an amount calculated under
the formula established under ORS 25.275. For purposes of this
subparagraph, this calculation shall be based on the obligor's
current monthly gross income or, if the obligor's current monthly
gross income is not known, the Oregon hourly minimum wage
converted to a monthly amount based upon a 40-hour workweek, zero
income for the obligee, and one joint child, regardless of how
many children the parties may actually have. No rebuttals to this
calculation may be allowed.
(d) Notwithstanding the amount determined to be withheld under
paragraph (c) of this subsection, the obligor must retain
disposable monthly income of at least 160 times the applicable
federal minimum hourly wage prescribed by section 6 (a)(1) of the
Fair Labor Standards Act of 1938 (29 U.S.C. 206) or any future
minimum hourly wages prescribed in that section.
(2) The amount to be withheld from unemployment compensation
under ORS chapter 657 is calculated as follows:
(a) If withholding is for a current support order, regardless
of the existence of arrearage, the amount to be withheld is the
lesser of:
(A) Twenty-five percent of the benefits paid; or
(B) The current monthly support obligation. { + The entity
issuing the order to withhold may convert the monthly support
obligation amount to a percentage to be withheld from each
benefits payment. However, the total amount withheld in one month
may not exceed 25 percent of the benefits paid in that month or
the current monthly support obligation, whichever is less. + }
(b) If withholding is for arrearage only, the amount to be
withheld is the lesser of:
(A) Fifteen percent of the benefits paid; or
(B) The amount of the last ordered monthly support { +
obligation. The entity issuing the order to withhold may convert
the last ordered monthly support obligation amount to a
percentage to be withheld from each benefits payment. However,
the total amount withheld in one month may not exceed 15 percent
of the benefits paid in that month or the amount of the last
ordered monthly support obligation, whichever is less + }.
(c) { + The withholder may not charge or collect a + }
{ - No - } processing fee { - shall be charged or
collected - } when withholding from unemployment compensation.
(3) The amount to be withheld from workers' compensation under
ORS chapter 656 is set forth in ORS 656.234.
(4) Notwithstanding any other provision of this section, when
withholding is from a lump sum payment or benefit, including but
not limited to retroactive workers' compensation benefits, lump
sum retirement plan disbursements or withdrawals, insurance
payments or settlements, severance pay, bonus payments or any
other similar payments or benefits that are not periodic
recurring income, the amount subject to withholding for payment
of a support obligation may not exceed one-fourth of the amount
of the lump sum payment or benefit.
(5) Notwithstanding any other provision of this section,
{ - when withholding is only for arrearage assigned to this or
another state, the Department of Justice - } { + the
administrator + } may set a lesser amount to be withheld if the
obligor demonstrates the withholding is prejudicial to the
obligor's ability to provide for a child the obligor has a duty
to support. The Department of Human Services shall adopt rules
{ + consistent with federal regulations + } to implement this
subsection.
(6) Except as provided in subsection (2) of this section, the
withholder may deduct from the obligor's disposable income a
monthly processing fee not to exceed $5. The processing fee is in
addition to the amount calculated to be withheld for support,
unless the amount to be withheld for support is the maximum
allowed under subsection (8) of this section, in which case the
fee is deducted from the amount withheld as support.
(7) If there are multiple withholding orders against the same
obligor, the amount to be withheld is the sum of each support
order calculated independently.
(8) No withholding as calculated under this section, including
the processing fee permitted in subsection (6) of this section,
shall exceed 50 percent of the obligor's net disposable income.
The limit established in this subsection applies whenever
withholding is implemented under this section, whether by a
single order or by multiple orders against the same obligor.
(9) When the obligor's income is not sufficient for the
withholder to fully comply with each withholding order, the
withholder shall withhold the maximum amount allowed under this
section. If all withholding orders for a particular obligor are
payable to or through the Department of Justice, the withholder
shall pay to the department { - of Justice - } the income
withheld and the department { - of Justice - } shall determine
priorities for allocating income withheld to multiple child
support cases relative to that obligor. If one or more of the
withholding orders for a particular obligor require payment other
than to or through the department { - of Justice - } , the
withholder shall use the following to determine priorities for
withholding and allocating income withheld to multiple child
support cases:
(a) If the amount withheld from the obligor's income is
sufficient to pay the current support due to each case but is not
enough to fully comply with the withholding order for each case
where past due support is owed, the withholder shall:
(A) Pay to each case the amount of support due for the current
month; and
(B) Pay the remainder of the amount withheld in equal amounts
to each case where { - arrearages are - } { + past due
support is + } owed. However, no case shall receive more than
the total amount of current support and past due support owed to
that case at the time the payment is made.
(b) If the amount withheld is not sufficient to pay the current
support due to each case, each case shall be paid a proportionate
share of the amount withheld. The withholder shall determine this
for each case by dividing the monthly amount ordered as current
support for that case by the combined monthly amount ordered as
current support for all cases relative to the same obligor, and
multiplying this percentage by the total amount withheld.
(10) An order to withhold income is not subject to the
limitations of ORS 23.186.
(11) A withholder shall withhold funds as directed in the order
to withhold, except that when a withholder receives an
income-withholding order issued by another state, the withholder
shall apply the income-withholding law of the state of the
obligor's principal place of employment in determining:
(a) The withholder's fee for processing an income-withholding
order;
(b) The maximum amount permitted to be withheld from the
obligor's income;
(c) The time periods within which the withholder must implement
the income-withholding order and forward the child support
payment;
(d) The priorities for withholding and allocating income
withheld for multiple child support obligees; and
(e) Any withholding terms or conditions not specified in the
order.
SECTION 9. ORS 25.610 is amended to read:
25.610. (1) Whenever support enforcement services are being
provided and those services are funded in part through Title IV-D
of the Social Security Act (42 U.S.C. 651, et seq.), the district
attorney or the Division of Child Support of the Department of
Justice, whichever is appropriate, may request the Department of
Revenue, through the Department of Human Services or its
designee, to collect past due child and spousal support from
income tax refunds due to the obligor. { - Such - }
{ + The + } request shall be based upon the payment record
maintained pursuant to ORS 25.020.
(2) If support payment records have not been maintained as
provided in ORS 25.020, then { - such - } a { + support + }
payment record may be established pursuant to ORS 25.164, 25.167
and 416.429.
(3) The Department of Human Services shall adopt rules:
(a) Setting out additional criteria for requests pursuant to
subsection (1) of this section; and
(b) Directing how any support obligation collected by the
Department of Revenue shall be distributed, consistent with
federal regulations.
(4) { - The obligor and the obligee must be sent a written
notice of the intent to apply the refund to the obligor's support
obligation. - } { + Before the Department of Human Services
makes a request to the Department of Revenue under subsection (1)
of this section, the Department of Human Services shall provide
advance written notice to the obligor and the obligee of its
intent to refer the case to the Department of Revenue. + } The
notice shall inform the parties { - of - } :
(a) { + Of + } the proposed action;
(b) { + Of + } the { + obligor's + } right to request { - a
hearing to contest - } { + an administrative review of + } the
proposed action; { - and - }
(c) That { - a hearing - } { + an administrative
review + }, if desired, must be requested { + by the obligor + }
within 30 days { + of the date of the notice; and
(d) That the only issues that may be considered in the
administrative review are:
(A) Whether the obligor is the person who owes the support
obligation; and
(B) Whether the amount shown as the past due support is
correct + }.
(5) { - Hearings - } { + An administrative review + } must
be requested within 30 days. At the { - hearing, no - } { +
administrative review, an + } issue may { + not + } be
considered if it was previously litigated or if the obligor
failed to exercise rights to appear and be heard or to appeal a
decision { - which - } { + that + } resulted in the accrual
of the arrearage being used as a basis for a request under
{ + subsection (1) of + } this section.
(6) When the Department of Revenue has been requested to
collect past due child and spousal support from income tax
refunds due to the obligor, the Department of Revenue
{ - shall - } { + may + } not allow the obligor to apply any
income tax refund to future taxes of the obligor.
(7) Notwithstanding any other provision of this section, an
obligor who is not delinquent in payment of child or spousal
support may authorize the Department of Revenue, through the
Department of Human Services or its designee, to withhold any
income tax refund owing to that obligor for the purpose of
applying the moneys as a credit to the support account maintained
by the Department of Justice.
SECTION 10. ORS 109.103 is amended to read:
109.103. { + (1) + } If a child is born out of wedlock and
paternity has been established, either parent may initiate a
civil proceeding to determine the custody or support of the
child. The proceeding shall be brought in the circuit court of
the county in which the child resides or is found or in the
circuit court of the county in which either parent resides. The
parents { - shall - } have the same rights and
responsibilities regarding the custody and support of their child
that married or divorced parents would have, and the provisions
of ORS 107.095 to 107.425 that relate to the custody or support
of children { - shall be applicable - } { + apply + } to the
proceeding.
{ + (2) When a parent initiates a proceeding under this
section and the child support rights of one of the parents or of
the child have been assigned to the state, the parent initiating
the proceeding shall serve, by mail or personal delivery, a copy
of the petition on the Administrator of the Division of Child
Support or on the branch office providing support services to the
county in which the suit is filed. + }
SECTION 11. ORS 416.425 is amended to read:
416.425. (1) Any time support enforcement services are being
provided under ORS 25.080, the { - obligated parent - } { +
obligor + }, the obligee, the party holding the support rights or
the administrator may move for the existing order to be modified
under this section. The motion shall be in writing in a form
prescribed by the administrator, shall set out the reasons for
modification and shall state the telephone number and address of
the { - moving - } party { + requesting modification + }.
The { - motion shall be served - } { + moving party shall
serve the motion + } upon the { - obligated parent - } { +
obligor + }, the obligee, the party holding the support rights
and the administrator, as appropriate. The { - obligor
shall - } { + nonrequesting parties must + }be served in the
same manner as provided for service of the notice and finding of
financial responsibility under ORS 416.415 (1).
{ + Notwithstanding ORS 25.085, + } the { - obligee shall be
served in accordance with ORS 25.085 - } { + requesting party
must be served by first class mail to the requesting party's last
known address + }. The { - parties against whom the motion is
made shall - } { + nonrequesting parties + } have 30 days to
resolve the matter by stipulated agreement or to serve the moving
party by regular mail with a written response setting forth any
objections to the motion and a request for hearing. The hearing
shall be conducted pursuant to ORS 416.427.
(2) When the moving party is other than the administrator and
no objections and request for hearing have been served within 30
days, the moving party may submit a true copy of the motion to
the hearings officer as provided in ORS 416.427, except the
default
{ - shall - } { + may + } not be construed to be a contested
case as defined in ORS 183.310 to 183.550. Upon proof of service,
the hearings officer shall issue an order granting the relief
sought.
(3) When the moving party is the administrator and no
objections and request for hearing have been served within 30
days, the administrator may enter an order granting the relief
sought.
(4) A motion for modification made { - pursuant to - }
{ + under + } this section { - shall - } { + does + } not
stay the administrator from enforcing and collecting upon the
existing order unless so ordered by the court in which the order
is docketed.
(5) Except as otherwise provided by ORS 416.400 to 416.470, the
only support payments { - which - } { + that + } may be
modified are the monthly future support payments.
(6) The party requesting modification { - shall have - }
{ + has + } the burden of showing a substantial change of
circumstances or that a modification is appropriate under the
provisions of ORS 25.287.
(7) An administrative order modifying a court order is not
effective until the administrative order is reviewed and approved
by the court that entered the court order. The court shall make a
written finding on the record that the administrative order
complies with the formula established by ORS chapter 25. The
court may approve the administrative order at any time after the
order is issued. If upon review the court finds that the
administrative order should not be approved, the court shall set
the matter for hearing de novo.
(8) The obligee is a party to all proceedings under this
section.
(9) An order entered under this section that modifies a support
order because of the incarceration of the obligor is effective
only during the period of the obligor's incarceration and for 60
days after the obligor's release from incarceration. The
previous support order is reinstated by operation of law on the
61st day after the obligor's release from incarceration. An order
that modifies a support order because of the obligor's
incarceration must contain a notice that the previous order will
be reinstated on the 61st day after the obligor's release from
incarceration.
SECTION 12. ORS 419B.406 is amended to read:
419B.406. When a child is in the legal custody of the
Department of Human Services and { - such - } { + the + }
child is the beneficiary of an { - existing - } order of
support in a decree of dissolution or other order and the
department is required to provide financial assistance for the
care and support of { - such - } { + the + } child, the
department shall be assignee of and subrogated to
{ - such - } { + the + } child's proportionate share of any
such support obligation including sums that have accrued whether
or not the support order or decree provides for separate monthly
amounts for the support of each of two or more children or a
single monthly gross payment for the benefit of two or more
children, up to the amount of assistance provided by the
department. The assignment shall be as provided in ORS 418.042.
SECTION 13. ORS 419C.597 is amended to read:
419C.597. When a youth offender or other offender is in the
legal or physical custody of the Oregon Youth Authority and the
offender is the beneficiary of an { - existing - } order of
support in a decree of dissolution or other order and the youth
authority is required to provide financial assistance for the
care and support of the offender, the youth authority shall be
assignee of and subrogated to the offender's proportionate share
of any such support obligation including sums that have accrued
whether or not the support order or decree provides for separate
monthly amounts for the support of each of two or more children
or a single monthly gross payment for the benefit of two or more
children, up to the amount of assistance provided by the youth
authority. The assignment shall be as provided in ORS 418.042.
SECTION 14. ORS 657.855 is amended to read:
657.855. (1) Except as provided in this section, benefits due
under this chapter { - shall - } { + may + } not be assigned,
pledged, encumbered, released or commuted and shall, except as
otherwise provided in this chapter, be exempt from all claims of
creditors and from levy, execution and attachment or remedy for
recovery or collection of a debt, which exemption may not be
waived. No agreement by an individual to waive the individual's
rights under this chapter is valid.
(2) The exemption from execution or other process granted under
this section applies to only 75 percent of benefits payable under
this chapter if the execution or other process is issued for a
{ + child + } support obligation or an order or notice entered
pursuant to ORS chapter 25, 107, 108, 109, 110, 416, 419B or
419C { + and the child support obligation or the order or notice
is being enforced pursuant to a plan approved under Title IV-D of
the Social Security Act + }.
SECTION 15. { + (1) The amendments to ORS 25.010 by section 2
of this 2003 Act apply to support enforcement proceedings
initiated and support orders issued before, on or after the
effective date of this 2003 Act.
(2) The amendments to ORS 25.125 by section 3 of this 2003 Act
apply to motions to terminate, vacate or set aside support orders
filed before, on or after the effective date of this 2003 Act.
(3) The amendments to ORS 25.396 by section 7 of this 2003 Act
apply to requests for exceptions to income withholding filed on
or after the effective date of this 2003 Act.
(4) The amendments to ORS 25.414 by section 8 of this 2003 Act
apply to orders to withhold income issued before, on or after the
effective date of this 2003 Act.
(5) The amendments to ORS 25.610 by section 9 of this 2003 Act
apply to requests made to the Department of Revenue on or after
the effective date of this 2003 Act.
(6) The amendments to ORS 109.103 by section 10 of this 2003
Act apply to proceedings initiated under ORS 109.103 on or after
the effective date of this 2003 Act.
(7) The amendments to ORS 416.425 by section 11 of this 2003
Act apply to motions filed under ORS 416.425 on or after the
effective date of this 2003 Act.
(8) The amendments to ORS 419B.406 and 419C.597 by sections 12
and 13 of this 2003 Act apply to support obligations ordered
before, on or after the effective date of this 2003 Act. + }
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