SPONSOR:	Rep. Dukes & Rep. Hensley & Rep. Wilson & Sen. Lavelle & Sen. Lopez & Sen. Simpson;
	Reps. Hudson, Outten, Spiegelman, J. Johnson, Q. Johnson, Lynn; Sen. Hocker

HOUSE OF REPRESENTATIVES 148th GENERAL ASSEMBLY

HOUSE BILL NO. 294

AN ACT TO AMEND TITLE 13 OF THE DELAWARE CODE RELATING TO CHILD SUPPORT.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1.Amend Title 13 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 519Collection of overdue support from monetary awards.

(a) A child support installment or payment which is past due shall, as of the date on which it is due, be a lien in favor of the obligee against any monetary award, excluding the first $1,000, to which the obligor may be entitled in an amount sufficient to satisfy the arrearage, whether the amount due is a fixed sum or is accruing periodically.Such child support lien shall arise by operation of law, without the necessity of obtaining a judicial determination of arrearage or an order creating the lien, and such lien shall incorporate any unpaid child support which shall accrue while the lien is in effect. This section shall only apply to obligees who were at least 18 years old at the time of the cause of action that resulted in a monetary award. Any lien in favor of the oblige under this section shall also be a lien in favor of the Director who may enforce the lien in an action in Family Court against any person liable to pay the monetary award.

(b) The Division of Child Support Enforcement shall maintain an alphabetical list of all known obligors subject to a lien under subsection (a).The list shall be available on the website operated by the Division of Child Support Enforcement.Any person required to refer to this list shall be entitled to rely upon its accuracy and may operate as if no lien established under this section exists if the prevailing party is not identified in the list.

(c) Before the prevailing party can receive the proceeds of a monetary award, the attorney representing the prevailing party shall first certify that the prevailing party is not identified as an obligor under the list required under subsection (b).In the event that the prevailing party is identified as an obligor, the attorney shall make payment of any lien to the department's State disbursement unit from the net proceeds of any monetary award.

(d) If the prevailing party is not represented by an attorney, the insurer or other paying agent responsible for distribution of the monetary award shall first certify that the prevailing party is not identified as an obligor under the list required under subsection (b) before distributing any funds to the prevailing party.In the event that the prevailing party is identified as an obligor, the insurer or other paying agent responsible for distribution of the monetary award shall first make payment of any lien to the department's State disbursement unit from the net proceeds of any monetary award.

(e) An attorney, insurer or other paying agent that makes distribution as required under this section shall be immune from any civil, criminal or administrative penalties for making an erroneous distribution or by failing to make a distribution to an obligor not identified under this list established under subsection (b). Nothing in this section shall give rise to a claim or cause of action against an attorney or an insurer by any person who asserts he is the intended obligee of the outstanding lien for child support.

(f)For purposes of this section: (1) "Monetary award" means  any portion of a settlement paid as a lump sum negotiated in lieu of, or subsequent to the filing of a lawsuit for, or any civil judgment or civil arbitration award that is paid as a third party claim for bodily injury or death under a property and casualty insurance policy, or paid as a workers' compensation or occupational disease act award under a workers' compensation policy. The term includes self-insurers and also applies to property and casualty and workers' compensation policies which are issued by an insurer licensed or authorized to do business in the State. The term does not include a lump sum payable through a structured settlement annuity.

(2) "Obligor" means a person to whom a duty of support has been determined to exist under this Title.

(3) "Obligee" means a person to whom support is owed under this Title.

(4) "Past due" means that an obligor is in default of a support payment or retroactive support due for a period of thirty days or more.

SYNOPSIS

Currently in the State of Delaware there are high arrearages in child support owed and past due.In many circumstances persons' who are owing support have received monetary awards in the form of a court settlement, judgment or under a workers compensation claim.This Bill requires the Division of Child Support Enforcement to maintain an active list of persons who are in arrears of their child support duties.Any attorney or insurer will now be required to consult this list before releasing any funds to clients or prevailing parties to verify that no support is owed.If support is owed, the total amount of support in arrears must first be paid before any funds (except the first $1,000) may be released to the prevailing party.