Chapter 878
AN ACT
HB 2125
Relating to changes in state child support program in response to
changes in federal law; amending ORS 25.020, 25.150, 25.245, 25.287, 25.321,
25.323, 25.325, 25.327, 25.329, 25.331, 25.333, 25.337 and 25.341; and
declaring an emergency.
Be It Enacted by the People of
the State of
SECTION 1.
ORS 25.020 is amended to read:
25.020. (1) Support
payments for or on behalf of any person[,]
that are ordered, registered or filed under this chapter or 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 under ORS 418.032, 418.042, 419B.406 or 419C.597;
(b) As provided by rules
adopted under ORS 180.345, when public assistance 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 under ORS 25.080;
(e) When ordered by the
court under 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 of
Justice:
(A) Shall disburse
support payments, to which the obligee is legally entitled, to the collection
agency if the obligee submits the completed form referred to in paragraph
(c)(A) of this subsection to the department;
(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 ORS 697.086;
(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
(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.
(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 administrator for purposes of providing
support enforcement services under ORS 25.080;
(B) May not charge
interest or a fee for its services exceeding 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;
(C) May not initiate,
without written authorization from the administrator, any enforcement action
relating to support payments on which support enforcement services are provided
by the 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 to the obligee payments received from
any obligor [who has not previously
tendered any payment by a check or instrument that was not paid or was
dishonored, to the obligee,] without waiting for payment or clearance of
the check or instrument received if the obligor has not previously tendered
any payment by a check or instrument that was not paid or was dishonored.
(5) The Department of
Justice shall notify each obligor and obligee by mail when support payments
shall be made to the department 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 paragraphs (d) and (e) of this subsection, a judgment or order
establishing paternity or including a provision concerning support must contain:
(A) The residence,
mailing or contact address, Social Security number, telephone number and driver
license number of each party;
(B) The name, address
and telephone number of all employers of each party;
(C) The names and dates
of birth of the joint children of the parties; and
(D) Any other
information required by rule adopted by the Chief Justice of the Supreme Court
under ORS 1.002.
(b) The judgment 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 the change; and
(B) May request that the
administrator review the amount of support ordered after [two years] three years, or such shorter cycle as determined by
rule of the Department of Justice, 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,
which 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 administrative law
judge, 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
Justice 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.
(e) The Chief Justice of
the Supreme Court may, in consultation with the Department of Justice, adopt
rules under ORS 1.002 to designate information specified in this subsection as
confidential and require that the information be submitted through an alternate
procedure to ensure that the information is exempt from public disclosure under
ORS 192.502.
(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 may not be given
for payments not made to the Department of Justice as required under subsection
(1) of this section.
(12) The Department of
Justice shall give credit for payments not made to the department:
(a) When 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) When 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) When payments are
assigned to another state and that state verifies that payments not paid to the
department were received by the other state; or
(d) As provided by rule
adopted under ORS 180.345.
(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 an administrative law judge
assigned from the Office of Administrative Hearings 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 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
Justice shall adopt rules that:
(a) Direct how support
payments that are made through the department are to be applied and
distributed; and
(b) Are consistent with
federal regulations.
SECTION 2.
ORS 25.150 is amended to read:
25.150. The Department
of Justice shall assess and collect any fees for establishment,
enforcement, [services and]
collection, accounting and disbursement services required by state law or
administrative rule or by federal law or regulation, [or state law or administrative rule] including the annual fee
required under Title IV-D of the Social Security Act.
SECTION 3.
ORS 25.245 is amended to read:
25.245. (1)
Notwithstanding any other provision of Oregon law, a parent who is eligible for
and receiving cash payments under Title IV-A of the Social Security Act, the
general assistance program as provided in ORS chapter 411 or a general assistance
program of another state or tribe, the Oregon Supplemental Income Program or
the federal Supplemental Security Income Program shall be rebuttably presumed
unable to pay child support and a child support obligation does not accrue
unless the presumption is rebutted.
(2) Each month, the
Department of Human Services shall identify those persons receiving cash
payments under the programs listed in subsection (1) of this section that are
administered by the State of
(3) The administrator
shall refer to the information provided in subsection (2) of this section prior
to establishing any child support obligation. Within 30 days following identification
of persons under subsection (2) of this section, the entity responsible for
support enforcement services under ORS 25.080 shall provide notice of the
presumption to the obligee and obligor and shall inform all parties to the
support order that, unless a party objects as provided in subsection (4) of
this section, child support shall cease accruing beginning with the support
payment due on or after the date the obligor first begins receiving the cash
payments and continuing through the support payment due in the last month in
which the obligor received the cash payments. The entity responsible for
support enforcement services shall serve the notice on the obligee in the
manner provided for the service of summons in a civil action or by certified mail,
return receipt requested, and shall serve the notice on the obligor by first
class mail to the obligor’s last-known address. The notice shall specify the
month in which cash payments are first made and shall contain a statement that
the administrator represents the state and that low cost legal counsel may be
available.
(4) A party may object
to the presumption by sending an objection to the entity responsible for
support enforcement services under ORS 25.080 within 20 days after the date of
service of the notice. The objection must describe the resources of the obligor
or other evidence that might rebut the presumption of inability to pay child
support. The entity receiving the objection shall cause the case to be set for
a hearing before a court or an administrative law judge. The court or
administrative law judge may consider only whether the presumption has been
rebutted.
(5) If no objection is
made, or if the court or administrative law judge finds that the presumption
has not been rebutted, the Department of Justice shall discontinue billing the
obligor for the period of time described in subsection (3) of this section and
no arrearage shall accrue for the period during which the obligor is not
billed. In addition, the entity providing support enforcement services shall
file with the circuit court in which the support order or judgment has been
entered a copy of the notice described in subsection (3) of this section or, if
an objection is made and the presumption is not rebutted, a copy of the administrative
law judge’s order.
(6)(a) Within 30 days
after the date the obligor ceases receiving cash payments under a program
listed in subsection (1) of this section, the Department of Justice shall
provide notice to all parties to the support order:
(A) Specifying the last
month in which a cash payment was made;
(B) Stating that the
payment of those benefits has terminated and that by operation of law billing
and accrual of support resumes; and
(C) Informing the
parties of their rights to request a review and modification of the support
order based on a substantial change in circumstance or pursuant to ORS 25.287
or any other provision of law.
(b) The notice shall
include a statement that the administrator represents the state and that low
cost legal counsel may be available.
(c) The entity providing
enforcement services shall file a copy of the notice required by paragraph (a)
of this subsection with the circuit court in which the support order or
judgment has been entered.
(7) Receipt by a child
support obligor of cash payments under any of the programs listed in subsection
(1) of this section shall be sufficient cause for a court or administrative law
judge to allow a credit and satisfaction against child support arrearage for
months that the obligor received the cash payments.
(8) The notice and
finding of financial responsibility required by ORS 416.415 shall include
notice of the presumption, nonaccrual and arrearage credit rights provided for
in this section.
(9) The presumption,
nonaccrual and arrearage credit rights created by this section shall apply
whether or not child support enforcement services are being provided under
Title IV-D of the Social Security Act.
(10) Application of the
presumption, nonaccrual and arrearage credit rights created by this section
does not constitute a modification but does not limit the right of any party to
seek a modification of a support order based upon a change of circumstances or
pursuant to ORS 25.287 or any other provision of law. In determining whether a
change in circumstances has occurred or whether [two years have elapsed] three years have elapsed, or such
shorter cycle as determined by rule of the Department of Justice, since
entry of a support order, the court or administrative law judge may not consider
any action taken under this section as entry of a support order. The
presumption stated in subsection (1) of this section applies in any
modification proceeding.
SECTION 4.
ORS 25.287 is amended to read:
25.287. (1)(a) The
entity providing support enforcement services under ORS 25.080 may initiate
proceedings to modify a support obligation to ensure that the support
obligation is in accordance with the formula established under ORS 25.270 to
25.287.
(b) Proceedings under
this subsection may occur only after [two
years have elapsed] three years have elapsed, or such shorter cycle as
determined by rule of the Department of Justice, from the later of the
following:
(A) The date the
original support obligation took effect;
(B) The date any
previous modification of the support obligation took effect; or
(C) The date of any
previous review and determination under this subsection that resulted in no
modification of the support obligation.
(c) For purposes of
paragraph (b) of this subsection, a support obligation or modification takes
effect on the first date on which the obligor is to pay the established or
modified support amount.
(d) The only issues at
proceedings under this subsection are whether [two years have elapsed, as described in paragraph (b) of this
subsection,] three years have elapsed, or such shorter cycle as
determined by rule of the department, and whether the support obligation is
in substantial compliance with the formula established under ORS 25.270 to
25.287.
(e) Upon review, if the
administrator determines that a support obligation does not qualify for
modification under this section, a party may object to the determination within
30 days after the date of the determination. A hearing on the objection shall
be conducted by an administrative law judge assigned from the Office of
Administrative Hearings. Appeal of the order of the administrative law judge
may be taken to the circuit court of the county in which the support obligation
has been entered or registered for a hearing de novo. The appeal to the court
shall be by petition for review filed within 60 days after entry of the order
of the administrative law judge.
(f) If the court, the
administrator or the administrative law judge finds that more than [two years have elapsed, as described in
paragraph (b) of this subsection,] three years have elapsed, or such
shorter cycle as determined by rule of the department, the court, the
administrator or the administrative law judge shall modify the support order to
bring the support obligation into substantial compliance with the formula
established under ORS 25.270 to 25.287, regardless of whether there has been a
substantial change in circumstances since the support obligation was last
established, modified or reviewed. Proceedings by the administrator or
administrative law judge under this subsection shall be conducted according to
the provisions of ORS 416.425 and 416.427.
(g) The provisions of
this subsection apply to any support obligation established by a support order
under this chapter or ORS chapter [24,]
107, 108, 109, 110 or 416 or ORS 419B.400 or 419C.590.
(2) The entity providing
support enforcement services shall state in the document initiating the
proceeding, to the extent known:
(a) Whether there is
pending in this state or any other jurisdiction any type of support proceeding
involving the child, including a proceeding brought under ORS 107.085, 107.135,
107.431, 108.110, 109.100, 109.103, 109.165, 125.025, 416.400 to 416.465,
419B.400 or 419C.590 or ORS chapter 110; and
(b) Whether there exists
in this state or any other jurisdiction a support order, as defined in ORS
110.303, involving the child, other than the support obligation the entity
seeks to modify.
(3) The entity providing
support enforcement services shall include with the document initiating the
proceeding a certificate regarding any pending support proceeding and any
existing support order other than the support obligation the entity seeks to
modify. The entity providing support enforcement services shall use a
certificate that is in a form prescribed by the administrator and shall include
information required by the administrator and subsection (2) of this section.
(4) The administrator,
court or administrative law judge may use the provisions of subsection (1) of
this section when a support order was entered in another state and registered
in Oregon, the provisions of ORS chapter 110 apply and more than [two years have elapsed as provided in
subsection (1)(b) of this section] three years have elapsed, or such
shorter cycle as determined by rule of the department.
(5) Notwithstanding the
provisions of this section, proceedings may be initiated at any time to modify
a support obligation based upon a substantial change of circumstances under any
other provision of law.
(6) The obligee is a
party to any action to modify a support obligation under this section.
SECTION 5.
ORS 25.321 is amended to read:
25.321. As used in ORS
25.321 to 25.343:
(1) “Accessible” means
that, unless otherwise provided in a support order:
(a) A health benefit
plan does not have service area limitations or the health benefit plan provides
an option not subject to service area limitations;
(b) A health benefit
plan has service area limitations and the child lives within 30 miles or 30
minutes of a primary care provider under the plan; or
(c) A health benefit
plan is accessible as defined in rules of the Department of Justice.
(2) “Enforcing agency”
means the administrator.
(3) “Enroll” means to be
eligible for and covered by a health benefit plan.
(4) “Health benefit plan”
means any policy or contract of insurance, indemnity, subscription or
membership issued by an insurer [or],
including health care coverage provided by a public entity, and any
self-insured employee benefit plan [for
the purpose of covering] that provides coverage for medical
expenses. [Medical expenses may include
but are not limited to hospital, surgical, major medical, dental, optical,
prescription drugs, office visits or any other comparable health care expenses
or any combination of these expenses.]
(5)(a) “Health care
coverage” means providing [a health
benefit plan under ORS 25.323 to meet the medical needs of a child and paying
the cost of any premium required by the health benefit plan] and paying
for the medical needs of a child through a health benefit plan.
(b) “Health care
coverage” does not include and is a separate obligation from any monetary
amount of child support or spousal support ordered to be paid.
(6) “Medical support”
means an amount ordered to be paid toward the cost of:
(a) Health care
coverage, including premiums, provided by a public entity or by another parent
through employment or otherwise; and
(b) Copayments,
deductibles and other medical expenses not covered by a health benefit plan.
[(6)] (7) “Medical support notice” means a notice as
prescribed under 42 U.S.C. 666(a)(19) or a substantially similar notice that is
issued and forwarded by the enforcing agency to enforce health care coverage
provisions of a support order.
[(7)] (8) “Plan administrator” means:
(a) The employer, union
or other provider that offers a health benefit plan; or
(b) The person to whom,
under a written agreement of the parties, the duty of plan administrator is
delegated by the employer, union or other provider that offers a health benefit
plan.
[(8)] (9) “Primary care provider” means a physician who
provides primary care and is a family or general practitioner, pediatrician,
internist, obstetrician, or gynecologist.
(10) “Providing party”
means a party to a child support order who has been ordered by the court or the
enforcing agency to provide health care coverage for a child or to provide such
coverage when it becomes available to the party.
[(9)] (11) “Satisfactory health care coverage” means coverage
provided under a health benefit plan[,
other than Medicaid or the Oregon Health Plan, that at a minimum includes
emergency care, inpatient and outpatient hospital care, physician services,
whether provided within or outside a hospital setting, and laboratory and X-ray
services] that, at a minimum, includes medical and hospital coverage,
provides for preventive, emergency, acute and chronic care and imposes
reasonable deductibles and copayments.
SECTION 6.
ORS 25.323 is amended to read:
25.323. [(1) In all child support orders entered
under ORS chapters 107, 108, 109 and 110 and ORS 416.400 to 416.465, 419B.400
and 419C.590, and in any modifications of those orders, the court or the
enforcing agency shall order the obligor to provide satisfactory health care
coverage for the child, unless the court or the enforcing agency finds that:]
[(a) The obligee or the assignee of child support rights has elected to
provide health care coverage for the child; or]
[(b) The obligor cannot provide satisfactory health care coverage that
is reasonable in cost and accessible to the child.]
[(2) If the court or the enforcing agency finds that the obligor cannot
provide health care coverage because health care coverage that is reasonable in
cost and accessible to the child is not available at the time the child support
order is entered, the court or the enforcing agency shall include in the order
a provision requiring the obligor to provide health care coverage when such
coverage becomes available to the obligor.]
[(3) Health care coverage is reasonable in cost if:]
[(a) The coverage is available to the obligor through employment related
or other group health insurance;]
[(b) The obligor’s share, if any, of premiums for the coverage does not,
under the circumstances of the case, make the application of the formula
established under ORS 25.275 unjust or inappropriate; and]
[(c) The coverage satisfies other criteria that the Department of
Justice may adopt by rule.]
[(4) The Department of Justice shall adopt rules under ORS 25.275 for
determining how the costs of providing health care coverage affect the support
obligation.]
(1) Except as
provided in this section, whenever a child support order is entered or modified
under this chapter, ORS chapter 107, 108, 109, 110 or ORS 416.400 to 416.465,
419B.400 or 419C.590, the court or the enforcing agency shall order one or both
parties to provide satisfactory health care coverage that is reasonable in cost
and accessible to the child. An order for health care coverage under this
subsection may include health care coverage provided by a public entity.
(2) In addition to
ordering health care coverage under subsection (1) of this section, the court
or enforcing agency may order one or both parties to pay medical support for
the child. Medical support ordered under this subsection must be reasonable in
cost.
(3) If the court or the
enforcing agency finds that the parties cannot provide satisfactory health care
coverage because satisfactory health care coverage that is reasonable in cost
and accessible to the child is not available at the time the child support
order is entered, the court or the enforcing agency:
(a) Shall order one or
both parties to provide satisfactory health care coverage that is reasonable in
cost and accessible to the child when the coverage becomes available; and
(b) May order that,
until the court or enforcing agency determines that satisfactory health care
coverage that is reasonable in cost and accessible to the child is available
and modifies the order, one or both parties pay medical support that is
reasonable in cost. The court or enforcing agency shall make written findings
on whether to order the payment of medical support under this paragraph.
(4) The cost of any
amount ordered to provide satisfactory health care coverage and medical support
under this section must be included in the child support calculation made under
ORS 25.275.
(5) The court or
enforcing agency may not order a party to pay medical support under this
section if the party is eligible to receive medical assistance under ORS
414.032, or has a dependent child in the household who is eligible to receive
medical assistance under ORS 414.032.
(6) The Department of
Justice shall adopt rules for determining the reasonableness of the cost of
satisfactory health care coverage and of medical support for the purposes of
this section, and for determining how the costs of providing health care
coverage and medical support affect the total support obligation for a child
under ORS 25.275.
SECTION 7.
ORS 25.325 is amended to read:
25.325. (1) When a child
support order requires [an obligor] a
party to provide health care coverage for a child under a health benefit
plan:
(a) The court or the
enforcing agency may issue a qualified medical child support order as provided
in section 609 of the Employee Retirement Income Security Act of 1974 (29
U.S.C. 1169) directing the [obligor’s]
providing party’s employer or plan administrator to enroll the [obligor’s] providing party’s
child in a health benefit plan and directing the [obligor’s] providing party’s employer to withhold any
required premium from the [obligor’s]
providing party’s compensation.
(b) If support
enforcement services are being provided under ORS 25.080, the enforcing agency
shall, when appropriate:
(A) Issue a medical
support notice in accordance with rules adopted by the Department of Justice.
(B) Issue a medical
support notice to the [obligor’s] providing
party’s employer within two business days of receiving information under
ORS 25.790 that the employer has hired or rehired the [obligor] providing party.
[(C) Provide the obligee with information regarding the health care
coverage obtained for the child and with any notice that coverage may terminate
because withholding has stopped under ORS 25.331 or 25.341.]
(2) If an order to
provide health care coverage is in effect or is being sought:
(a) The [obligor’s] providing party’s
employer or plan administrator shall release to [the obligee or] the enforcing agency, upon request, the name and
address of the insurer and any plan administrator; and
(b) The plan
administrator shall release to the obligee or the enforcing agency, upon
request, information about dependent health care coverage under the health
benefit plan.
(3) If a qualified medical
child support order or a medical support notice has been served on the [obligor’s] providing party’s
employer, the order or notice is binding on the employer and the plan
administrator to the extent that the child is eligible to be enrolled in the health
benefit plan under the applicable terms and conditions of the plan and the
standard enrollment guidelines as described in ORS 743.847. Enrollment of the
child shall be allowed at any time, notwithstanding any enrollment season
restrictions.
SECTION 8.
ORS 25.327 is amended to read:
25.327. (1) The
enforcing agency shall serve the medical support notice on the [obligor’s] providing party’s
employer as a withholder. The notice may be served upon the withholder or the
withholder’s registered agent, corporate officer, bookkeeper, accountant,
person responsible for payroll or local office manager by:
(a) Personal service;
(b) Any type of mail
that is calculated to give actual notice and is addressed to one of the persons
listed in this subsection; or
(c) Electronic means if
the employer has the ability to receive the medical support notice in that
manner.
(2) Service of a medical
support notice constitutes receipt of a medical child support order.
(3) The enforcing agency
shall, as provided in ORS 25.333, notify the [obligor and obligee] parties that the medical support notice
has been served on the [obligor’s] providing
party’s employer.
SECTION 9.
ORS 25.329 is amended to read:
25.329. When the
enforcing agency serves a medical support notice on an employer:
(1) The employer shall
comply with the provisions in the medical support notice;
(2) The plan
administrator and the employer shall treat the medical support notice as an
application by the enforcing agency for health care coverage for the named
child under the health benefit plan to the extent an application is required by
the plan;
(3) If the [obligor] providing party named in
the medical support notice is not an employee of the employer, or if a health
benefit plan is not offered or available to the [obligor] providing party, the employer shall notify the
enforcing agency within 20 business days after the date of the medical support
notice;
(4) If a health benefit
plan is offered or available to the [obligor]
providing party, the employer shall send the plan administrator’s portion
of the notice to each appropriate plan administrator within 20 business days
after the date of the medical support notice;
(5) Within 40 business
days after the date of the medical support notice, the plan administrator shall
do all of the following as directed by the notice:
(a) Complete the
appropriate portion of the notice and return the portion to the enforcing
agency;
(b) If the child is or
will be enrolled, notify the [obligor and
obligee] parties and furnish the obligee with the information
necessary to effectuate coverage and submit claims for benefits;
(c) If the child has
been or will be enrolled, provide the enforcing agency with the type of health
benefit plan under which the child has been or will be enrolled, including
whether dental, optical, office visits and prescription drugs are covered
services;
(d) If more than one
health benefit plan is available to the [obligor]
providing party and the [obligor]
providing party is not enrolled, forward the health benefit plan
descriptions and documents to the enforcing agency;
(e) If the [obligor] providing party is
subject to a waiting period that expires more than 90 days after the date of
receipt of the medical support notice by the plan administrator or if the [obligor] providing party has not
completed a waiting period that is measured in a manner other than the passage
of time, notify the employer, the enforcing agency[, the obligor and the obligee] and the parties; and
(f) Upon completion of
the enrollment, notify the employer of the enrollment;
(6) If the plan
administrator notifies the employer that the [obligor] providing party is subject to a waiting period that
expires more than 90 days after the date of receipt of the medical support
notice by the plan administrator or that the [obligor] providing party is subject to a waiting period that
is measured in a manner other than the passage of time, the employer shall,
when the [obligor] providing party
becomes eligible to enroll in the plan, notify the plan administrator that the
medical support notice requires that the child named in the notice be enrolled
in the plan; and
(7) The plan
administrator shall enroll the child and, if necessary to the enrollment of the
child, enroll the [obligor] providing
party in the plan [selected in
accordance with this subsection] as provided by rules adopted by the
Department of Justice. [All of the
following apply to the selection of the plan:]
[(a) If the obligor is enrolled in a health benefit plan that offers
dependent coverage, that plan shall be selected;]
[(b) If the obligor is not enrolled in a health benefit plan or is not
enrolled in a plan that offers dependent coverage, and if only one plan with
dependent coverage is offered, that plan shall be selected; and]
[(c) If the obligor is not enrolled in a health benefit plan or is not
enrolled in a plan that offers dependent coverage and if more than one plan
with dependent coverage is offered, the enforcing agency shall:]
[(A) Send the health benefit plan descriptions and documents to the
obligee; and]
[(B) Select a plan in consultation with the obligee and in accordance
with rules adopted by the Department of Justice;]
[(8) If more than one health benefit plan is available to the obligor
and the obligor is not enrolled, within 20 business days after the date the
plan administrator forwarded the health benefit plan descriptions and documents
to the enforcing agency under subsection (5)(d) of this section, the plan
administrator shall:]
[(a) Enroll the child, and if necessary the obligor, in the health
benefit plan selected by the enforcing agency; or]
[(b) Enroll the child, and if necessary the obligor, in any default
option if the plan administrator has not received a selection from the
enforcing agency; and]
[(9) Upon notification from the plan administrator that the child is
enrolled, the employer shall either withhold and forward the premiums as
provided in ORS 25.331 or notify the enforcing agency that the enrollment
cannot be completed because of limits established for withholding as provided
in ORS 25.331.]
SECTION 10.
ORS 25.331 is amended to read:
25.331. (1) Upon
notification from the plan administrator that the child is enrolled in the
health benefit plan, the employer shall withhold from the [obligor’s] providing party’s compensation the [obligor’s] providing party’s
share, if any, of premiums for the health benefit plan. The employer shall
forward the amount withheld as required by the health benefit plan.
(2) The withholding
required by a qualified medical child support order or a medical support notice
is a continuing obligation. The qualified medical child support order or
medical support notice and the withholding remain in effect and are binding
upon the employer until further notice from the court or the enforcing agency.
(3)(a) An amount
withheld by an employer in compliance with a withholding order issued for
monetary support and a qualified medical child support order or medical support
notice may not exceed 50 percent of the [obligor’s]
providing party’s net disposable income.
(b) Notwithstanding
paragraph (a) of this subsection, upon the motion of a party and after a
hearing, the court may order the withholding of more than 50 percent of the [obligor’s] providing party’s net
disposable income. However, the amount withheld may not exceed the amount
allowed under section 303(b) of the federal Consumer Credit Protection Act (15
U.S.C. 1673(b)).
(4) If [an obligor’s] a providing party’s
compensation drops to a level at which withholding under this section exceeds
the amount allowed under subsection (3) of this section, the employer shall
stop the withholding and send the court or the enforcing agency, as the case
may be, a written notice within 15 days of stopping the withholding. The notice
shall include the [obligor’s] providing
party’s name, address and Social Security number and the date the employer
stopped withholding under this section.
(5) An employer is not
subject to civil liability to an individual or agency for conduct or actions in
compliance with a medical support notice if the employer:
(a) Is served with a
medical support notice under ORS 25.327 that is regular on its face; and
(b) Complies with the
provisions of the medical support notice if the notice appears to be in
conformance with section 609 of the Employee Retirement Income Security Act of
1974 (29 U.S.C. 1169).
SECTION 11.
ORS 25.333 is amended to read:
25.333. (1) When the
enforcing agency issues a medical support notice under ORS 25.325, the
enforcing agency shall notify the [obligor
and the obligee] parties by regular mail to the last known addresses
of the [obligor and obligee]
parties:
(a) That the notice has
been sent to the [obligor’s] the
providing party’s employer; and
(b) Of the [obligor’s] providing party’s
rights and duties under the notice.
(2) [An obligor] A providing party may
contest a medical support notice within 14 days after the date the premium is
first withheld pursuant to the notice or, if the health benefit plan is
provided at no cost to the [obligor]
providing party, the date the first premium is paid by the employer.
(3) The only basis for
contesting a medical support notice is a mistake of fact. A “mistake of fact”
means any of the following:
(a) No order to provide
health care coverage under a health benefit plan has been issued in regard to
the [obligor’s] providing party’s
child;
(b) The amount to be
withheld for premiums is greater than is permissible under ORS 25.331; or
(c) The alleged [obligor] providing party is not
the [obligor] party from whom
health care coverage is required.
(4) The [obligor] providing party may
contest the medical support notice by requesting an administrative review.
After receiving a request for review and within 45 days after the date the
premium is first withheld pursuant to the medical support notice, the enforcing
agency shall determine, based on an evaluation of the facts, whether the
withholding for premiums may continue. The enforcing agency shall inform the [obligor and obligee] parties of
the determination in writing and include information regarding the right to
appeal the determination.
(5) Any appeal of the
enforcing agency’s determination under subsection (4) of this section is to the
circuit court for a hearing under ORS 183.484.
(6) The initiation of
proceedings to contest a medical support notice or an appeal of the enforcing
agency’s determination under this section does not stay the withholding of
premiums.
SECTION 12.
ORS 25.337 is amended to read:
25.337. (1) If the plan
administrator or the employer fails to comply with the requirements described
in ORS 25.329 or 25.331, the enforcing agency or obligee may bring a civil
action against the plan administrator or employer for medical expenses, the [obligor’s] providing party’s
share of the premiums, attorney fees and costs.
(2) An employer commits
an unlawful employment practice if the employer discharges [an obligor] a providing party,
refuses to hire [an obligor] a
providing party or in any other manner discriminates, retaliates or takes
disciplinary action against [an obligor]
a providing party because of the entry of a medical support notice or
qualified medical child support order or because of the obligations imposed
upon the plan administrator by the order. An employee may bring a civil action
under ORS 659A.885 or may file a complaint with the Commissioner of the Bureau
of Labor and Industries in the manner provided by ORS 659A.820.
(3) [An obligor] A providing party who
fails to maintain health care coverage for a child as ordered is liable, from
the date of the order, for any medical expenses resulting from the failure to
maintain coverage.
(4) The remedies
described in this section are not exclusive. Nothing in this section precludes
action by the court to enforce a judicial or administrative order requiring
health care coverage or [costs]
payment of medical support by imposition of remedial or punitive sanctions
for contempt or otherwise.
SECTION 13.
ORS 25.341 is amended to read:
25.341. When an employer
is unable to continue withholding from [an
obligor’s] a providing party’s compensation because the relationship
between the employer and the [obligor]
providing party ends, the employer shall send the enforcing agency a
written notice within 15 days of the termination of the relationship. The
notice must include the [obligor’s] providing
party’s name, the [obligor’s] providing
party’s last known address, the [obligor’s]
providing party’s Social Security number, the date the relationship
terminated and, if known, the name and address of a new employer of or other
provider of a health benefit plan to the [obligor]
providing party.
SECTION 14. This
2007 Act being necessary for the immediate preservation of the public peace,
health and safety, an emergency is declared to exist, and this 2007 Act takes
effect October 1, 2007.
Approved by the Governor August 3, 2007
Filed in the office of Secretary of State August 3, 2007
Effective date October 1, 2007
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