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 2280
A-Engrossed
House Bill 2711
Ordered by the House April 22
Including House Amendments dated April 22
Sponsored by Representative PATRIDGE
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 provisions relating to collection of child support
payments by collection agencies. Directs Director of Department
of Consumer and Business Services to adopt rules regulating
practices of collection agencies collecting child support
payments.
A BILL FOR AN ACT
Relating to collection of child support; creating new provisions;
and amending ORS 25.020.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 25.020 is amended to read:
25.020. (1) Support payments for or on behalf of any person,
ordered, registered or filed pursuant to ORS chapter 25, 107,
108, 109, 110, 416, 419B or 419C, unless otherwise authorized by
ORS 25.030, shall be made to the Department of Justice, as the
state disbursement unit:
(a) During periods for which support is assigned pursuant to
ORS 418.032, 418.042, 419B.406 or 419C.597;
(b) As provided by rules adopted pursuant to ORS 409.021 or
under ORS 180.340, when public assistance as defined by ORS
411.010 is provided to a person who receives or has a right to
receive support payments on the person's own behalf or on behalf
of another person;
(c) After the assignment of support terminates for as long as
amounts assigned remain owing;
(d) For any period during which support enforcement services
are provided pursuant to the child support enforcement program
created by Title IV-D of the Social Security Act or pursuant to
ORS 25.080;
(e) When ordered by the court pursuant to ORS 419B.400;
(f) When a support order that is entered or modified on or
after January 1, 1994, includes a provision requiring the obligor
to pay support by income withholding; or
(g) When ordered by the court under any other applicable
provision of law.
(2) The Department of Justice shall disburse payments, after
lawful deduction of fees and in accordance with applicable
statutes and rules, to those persons and entities that are
lawfully entitled to receive such payments.
(3)(a) When the administrator is providing support enforcement
services under ORS 25.080, the obligee may enter into an
agreement with a collection agency, as defined in ORS 697.005,
for assistance in collecting child support payments.
(b) The department:
(A) { - Except as otherwise provided in this paragraph, - }
Shall disburse support payments, to which the obligee is legally
entitled, to the collection agency { - according to the terms
of the agreement between the obligee and the collection
agency; - } { + if + }
{ - (B) May not disburse moneys to the collection agency
before - } the obligee submits the { + completed + } form
referred to in paragraph (c)(A) of this subsection to the
department { - and the department adjusts its support payment
records - } ;
{ - (C) May not disburse moneys to the collection agency
after 180 days following the date the department adjusts its
support payment records as described in subparagraph (B) of this
paragraph; - }
{ - (D) May not disburse moneys to the collection agency if
the collection agency violates any provision of this
subsection; - }
{ + (B) May reinstate disbursements to the obligee if:
(i) The obligee requests that disbursements be made directly to
the obligee;
(ii) The collection agency violates any provision of this
subsection; or
(iii) The Department of Consumer and Business Services notifies
the Department of Justice that the collection agency is in
violation of the rules adopted under section 4 of this 2003
Act; + }
{ - (E) - } { + (C) + } Shall credit the obligor's account
for the full amount of each support payment received by the
department and disbursed to the collection agency; { + and + }
{ - (F) - } { + (D) + } Shall develop the form referred to
in paragraph (c)(A) of this subsection, which shall include a
notice to the obligee printed in type size equal to at least
12-point type that the obligee may be eligible for support
enforcement services from the department or the district attorney
without paying the interest or fee that is typically charged by a
collection agency { - ; and - } { + . + }
{ - (G) May use information disclosed by the collection
agency to provide support enforcement services under ORS
25.080. - }
(c) The obligee shall:
(A) Provide to the department, on a form approved by the
department, information about the agreement with the collection
agency; and
(B) Promptly notify the department when the agreement is
terminated.
(d) The collection agency:
(A) May provide investigative and location services to the
obligee and disclose relevant information from those services to
the { - department - } { + administrator + } for purposes of
providing support enforcement services under ORS 25.080;
(B) May not charge interest or a fee for its services exceeding
{ - 20 - } { + 29 + } percent of each support payment received
{ + unless the collection agency, if allowed by the terms of the
agreement between the collection agency and the obligee, hires an
attorney to perform legal services on behalf of the obligee + };
{ - and - }
(C) May not initiate, without written authorization from the
{ - department - } { + administrator + }, any enforcement
action relating to support payments on which support enforcement
services are provided by the { - department - }
{ + administrator + } under ORS 25.080 { + ; and + }
{ + (D) Shall include in the agreement with the obligee a
notice printed in type size equal to at least 12-point type that
provides information on the fees, penalties, termination and
duration of the agreement + }.
{ + (e) The administrator may use information disclosed by
the collection agency to provide support enforcement services
under ORS 25.080. + }
(4) The Department of Justice may immediately transmit payments
received from any obligor who has not previously tendered any
payment by a check or instrument which was not paid or was
dishonored, to the obligee, without waiting for payment or
clearance of the check or instrument received.
(5) The Department of Justice shall notify each obligor and
obligee by mail when support payments shall be made to the
Department of Justice and when the obligation to make payments in
this manner shall cease.
(6)(a) The administrator shall provide information about a
child support account directly to a party to the support order
regardless of whether the party is represented by an attorney. As
used in this subsection, 'information about a child support
account' means the:
(A) Date of issuance of the support order.
(B) Amount of the support order.
(C) Dates and amounts of payments.
(D) Dates and amounts of disbursements.
(E) Payee of any disbursements.
(F) Amount of any arrearage.
(G) Source of any collection.
(b) Nothing in this subsection limits the information the
administrator may provide by law to a party who is not
represented by an attorney.
(7) Any pleading for the entry or modification of a support
order must contain a statement that payment of support under a
new or modified order will be by income withholding unless an
exception to payment by income withholding is granted under ORS
25.396.
(8)(a) Except as provided in paragraph (d) of this subsection,
a decree or order establishing paternity or including a provision
concerning support shall contain the residence, mailing or
contact address, Social Security number, telephone number and
driver license number of each party and the name, address and
telephone number of all employers of each party.
(b) The decree or order shall also include notice that the
obligor and obligee:
(A) Must inform the court and the administrator in writing of
any change in the information required by this subsection within
10 days after such change; and
(B) May request that the administrator review the amount of
support ordered after two years or at any time upon a substantial
change of circumstances.
(c) The administrator may require of the parties any additional
information that is necessary for the provision of support
enforcement services under ORS 25.080.
(d)(A) Upon a finding, that may be made ex parte, that the
health, safety or liberty of a party or child would unreasonably
be put at risk by the disclosure of information specified in this
subsection or by the disclosure of other information concerning a
child or party to a paternity or support proceeding or if an
existing order so requires, a court or administrator or hearing
officer, when the proceeding is administrative, shall order that
the information not be contained in any document provided to
another party or otherwise disclosed to a party other than the
state.
(B) The Department of Human Services shall adopt rules
providing for similar confidentiality for information described
in subparagraph (A) of this paragraph that is maintained by an
entity providing support enforcement services under ORS 25.080.
(9)(a) Except as otherwise provided in paragraph (b) of this
subsection, in any subsequent child support enforcement action,
the court or administrator, upon a showing of diligent effort
made to locate the obligor or obligee, may deem due process
requirements to be met by mailing notice to the last-known
residential, mailing or employer address or contact address as
provided in ORS 25.085.
(b) Service of an order directing an obligor to appear in a
contempt proceeding is subject to ORS 33.015 to 33.155.
(10) Subject to ORS 25.030, this section, to the extent it
imposes any duty or function upon the Department of Justice,
shall be deemed to supersede any provisions of ORS chapters 107,
108, 109, 110, 416, 419A, 419B and 419C that would otherwise
impose the same duties or functions upon the county clerk or the
Department of Human Services.
(11) Except as provided for in subsections (12), (13) and (14)
of this section, credit shall not be given for payments not made
to the Department of Justice as required pursuant to subsection
(1) of this section.
(12) The Department of Justice shall give credit for payments
not made to the Department of Justice when:
(a) Payments are not assigned to this or another state and the
obligee and obligor agree in writing that specific payments were
made and should be credited;
(b) Payments are assigned to the State of Oregon, the obligor
and obligee make sworn written statements that specific payments
were made, canceled checks or other substantial evidence is
presented to corroborate their statements and the obligee has
been given prior written notice of any potential criminal or
civil liability that may attach to an admission of the receipt of
assigned support;
(c) Payments are assigned to another state and that state
verifies that payments not paid to the Department of Justice were
received by the other state; or
(d) As provided by rule adopted pursuant to ORS 409.021 or
under ORS 180.340.
(13) An obligor may apply to the Department of Justice for
credit for payments made other than to the Department of Justice.
If the obligee or other state does not provide the agreement,
sworn statement or verification required by subsection (12) of
this section, credit may be given pursuant to order of a hearing
officer assigned from the Hearing Officer Panel established under
section 3, chapter 849, Oregon Laws 1999, after notice and
opportunity to object and be heard are given to both obligor and
obligee. Notice shall be served upon the obligee as provided by
ORS 25.085. Notice to the obligor may be by regular mail at the
address provided in the application for credit. A hearing
conducted under this subsection is a contested case hearing and
ORS 183.413 to 183.470 apply. Any party may seek a hearing de
novo in the circuit court.
(14) Nothing in this section precludes the Department of
Justice from giving credit for payments not made to the
Department of Justice when there has been a judicially determined
credit or satisfaction or when there has been a satisfaction of
support executed by the person to whom support is owed.
(15) The Department of Human Services shall adopt rules that:
(a) Direct how support payments that are made through the
Department of Justice are to be applied and distributed; and
(b) Are consistent with federal regulations.
SECTION 2. ORS 25.020, as amended by section 3, chapter 455,
Oregon Laws 2001, is amended to read:
25.020. (1) Support payments for or on behalf of any person,
ordered, registered or filed pursuant to ORS chapter 25, 107,
108, 109, 110, 416, 419B or 419C, unless otherwise authorized by
ORS 25.030, shall be made to the Department of Justice, as the
state disbursement unit:
(a) During periods for which support is assigned pursuant to
ORS 418.032, 418.042, 419B.406 or 419C.597;
(b) As provided by rules adopted pursuant to ORS 409.021 or
under ORS 180.340, when public assistance as defined by ORS
411.010 is provided to a person who receives or has a right to
receive support payments on the person's own behalf or on behalf
of another person;
(c) After the assignment of support terminates for as long as
amounts assigned remain owing;
(d) For any period during which support enforcement services
are provided pursuant to the child support enforcement program
created by Title IV-D of the Social Security Act or pursuant to
ORS 25.080;
(e) When ordered by the court pursuant to ORS 419B.400;
(f) When a support order that is entered or modified on or
after January 1, 1994, includes a provision requiring the obligor
to pay support by income withholding; or
(g) When ordered by the court under any other applicable
provision of law.
(2) The Department of Justice shall disburse payments, after
lawful deduction of fees and in accordance with applicable
statutes and rules, to those persons and entities that are
lawfully entitled to receive such payments.
(3)(a) When the administrator is providing support enforcement
services under ORS 25.080, the obligee may enter into an
agreement with a collection agency, as defined in ORS 697.005,
for assistance in collecting child support payments.
(b) The department:
(A) { - Except as otherwise provided in this paragraph, - }
Shall disburse support payments, to which the obligee is legally
entitled, to the collection agency { - according to the terms
of the agreement between the obligee and the collection
agency; - } { + if + }
{ - (B) May not disburse moneys to the collection agency
before - } the obligee submits the { + completed + } form
referred to in paragraph (c)(A) of this subsection to the
department { - and the department adjusts its support payment
records - } ;
{ - (C) May not disburse moneys to the collection agency
after 180 days following the date the department adjusts its
support payment records as described in subparagraph (B) of this
paragraph; - }
{ - (D) May not disburse moneys to the collection agency if
the collection agency violates any provision of this
subsection; - }
{ + (B) May reinstate disbursements to the obligee if:
(i) The obligee requests that disbursements be made directly to
the obligee;
(ii) The collection agency violates any provision of this
subsection; or
(iii) The Department of Consumer and Business Services notifies
the Department of Justice that the collection agency is in
violation of the rules adopted under section 4 of this 2003
Act; + }
{ - (E) - } { + (C) + } Shall credit the obligor's account
for the full amount of each support payment received by the
department and disbursed to the collection agency; { + and + }
{ - (F) - } { + (D) + } Shall develop the form referred to
in paragraph (c)(A) of this subsection, which shall include a
notice to the obligee printed in type size equal to at least
12-point type that the obligee may be eligible for support
enforcement services from the department or the district attorney
without paying the interest or fee that is typically charged by a
collection agency { - ; and - }
{ - (G) May use information disclosed by the collection
agency to provide support enforcement services under ORS
25.080 - } .
(c) The obligee shall:
(A) Provide to the department, on a form approved by the
department, information about the agreement with the collection
agency; and
(B) Promptly notify the department when the agreement is
terminated.
(d) The collection agency:
(A) May provide investigative and location services to the
obligee and disclose relevant information from those services to
the { - department - } { + administrator + } for purposes of
providing support enforcement services under ORS 25.080;
(B) May not charge interest or a fee for its services exceeding
{ - 20 - } { + 29 + } percent of each support payment received
{ + unless the collection agency, if allowed by the terms of the
agreement between the collection agency and the obligee, hires an
attorney to perform legal services on behalf of the obligee + };
{ - and - }
(C) May not initiate, without written authorization from the
{ - department - } { + administrator + }, any enforcement
action relating to support payments on which support enforcement
services are provided by the { - department - }
{ + administrator + } under ORS 25.080 { + ; and + }
{ + (D) Shall include in the agreement with the obligee a
notice printed in type size equal to at least 12-point type that
provides information on the fees, penalties, termination and
duration of the agreement + }.
{ + (e) The administrator may use information disclosed by
the collection agency to provide support enforcement services
under ORS 25.080. + }
(4) The Department of Justice may immediately transmit payments
received from any obligor who has not previously tendered any
payment by a check or instrument which was not paid or was
dishonored, to the obligee, without waiting for payment or
clearance of the check or instrument received.
(5) The Department of Justice shall notify each obligor and
obligee by mail when support payments shall be made to the
Department of Justice and when the obligation to make payments in
this manner shall cease.
(6)(a) The administrator shall provide information about a
child support account directly to a party to the support order
regardless of whether the party is represented by an attorney. As
used in this subsection, 'information about a child support
account' means the:
(A) Date of issuance of the support order.
(B) Amount of the support order.
(C) Dates and amounts of payments.
(D) Dates and amounts of disbursements.
(E) Payee of any disbursements.
(F) Amount of any arrearage.
(G) Source of any collection.
(b) Nothing in this subsection limits the information the
administrator may provide by law to a party who is not
represented by an attorney.
(7) Any pleading for the entry or modification of a support
order must contain a statement that payment of support under a
new or modified order will be by income withholding unless an
exception to payment by income withholding is granted under ORS
25.396.
(8)(a) Except as provided in paragraph (d) of this subsection,
a decree or order establishing paternity or including a provision
concerning support shall contain the residence, mailing or
contact address, Social Security number, telephone number and
driver license number of each party and the name, address and
telephone number of all employers of each party.
(b) The decree or order shall also include notice that the
obligor and obligee:
(A) Must inform the court and the administrator in writing of
any change in the information required by this subsection within
10 days after such change; and
(B) May request that the administrator review the amount of
support ordered after two years or at any time upon a substantial
change of circumstances.
(c) The administrator may require of the parties any additional
information that is necessary for the provision of support
enforcement services under ORS 25.080.
(d)(A) Upon a finding, that may be made ex parte, that the
health, safety or liberty of a party or child would unreasonably
be put at risk by the disclosure of information specified in this
subsection or by the disclosure of other information concerning a
child or party to a paternity or support proceeding or if an
existing order so requires, a court or administrator or hearing
officer, when the proceeding is administrative, shall order that
the information not be contained in any document provided to
another party or otherwise disclosed to a party other than the
state.
(B) The Department of Human Services shall adopt rules
providing for similar confidentiality for information described
in subparagraph (A) of this paragraph that is maintained by an
entity providing support enforcement services under ORS 25.080.
(9)(a) Except as otherwise provided in paragraph (b) of this
subsection, in any subsequent child support enforcement action,
the court or administrator, upon a showing of diligent effort
made to locate the obligor or obligee, may deem due process
requirements to be met by mailing notice to the last-known
residential, mailing or employer address or contact address as
provided in ORS 25.085.
(b) Service of an order directing an obligor to appear in a
contempt proceeding is subject to ORS 33.015 to 33.155.
(10) Subject to ORS 25.030, this section, to the extent it
imposes any duty or function upon the Department of Justice,
shall be deemed to supersede any provisions of ORS chapters 107,
108, 109, 110, 416, 419A, 419B and 419C that would otherwise
impose the same duties or functions upon the county clerk or the
Department of Human Services.
(11) Except as provided for in subsections (12), (13) and (14)
of this section, credit shall not be given for payments not made
to the Department of Justice as required pursuant to subsection
(1) of this section.
(12) The Department of Justice shall give credit for payments
not made to the Department of Justice when:
(a) Payments are not assigned to this or another state and the
obligee and obligor agree in writing that specific payments were
made and should be credited;
(b) Payments are assigned to the State of Oregon, the obligor
and obligee make sworn written statements that specific payments
were made, canceled checks or other substantial evidence is
presented to corroborate their statements and the obligee has
been given prior written notice of any potential criminal or
civil liability that may attach to an admission of the receipt of
assigned support;
(c) Payments are assigned to another state and that state
verifies that payments not paid to the Department of Justice were
received by the other state; or
(d) As provided by rule adopted pursuant to ORS 409.021 or
under ORS 180.340.
(13) An obligor may apply to the Department of Justice for
credit for payments made other than to the Department of Justice.
If the obligee or other state does not provide the agreement,
sworn statement or verification required by subsection (12) of
this section, credit may be given pursuant to order of a hearing
officer of the Department of Human Services after notice and
opportunity to object and be heard are given to both obligor and
obligee. Notice shall be served upon the obligee as provided by
ORS 25.085. Notice to the obligor may be by regular mail at the
address provided in the application for credit. A hearing
conducted under this subsection is a contested case hearing and
ORS 183.413 to 183.470 apply. Any party may seek a hearing de
novo in the circuit court.
(14) Nothing in this section precludes the Department of
Justice from giving credit for payments not made to the
Department of Justice when there has been a judicially determined
credit or satisfaction or when there has been a satisfaction of
support executed by the person to whom support is owed.
(15) The Department of Human Services shall adopt rules that:
(a) Direct how support payments that are made through the
Department of Justice are to be applied and distributed; and
(b) Are consistent with federal regulations.
SECTION 3. { + Section 4 of this 2003 Act is added to and made
a part of ORS 697.005 to 697.095. + }
SECTION 4. { + (1) The Director of the Department of Consumer
and Business Services shall adopt rules that regulate the
practices of a collection agency that enters into an agreement
with an obligee to collect child support payments as provided in
ORS 25.020.
(2) The rules adopted by the director under this section shall
be as consistent as practicable with the provisions of 15 U.S.C.
1692c to 1692f. + }
----------