Bill Text: MS SB2615 | 2021 | Regular Session | Introduced

Mississippi Senate Bill 2615 (Prior Session Legislation)

Introduced

Bill Title: Department of Human Services; authorize methods of communication for notices of encumbrance of assets for child support.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2021-02-02 - Died In Committee [SB2615 Detail]

Download: Mississippi-2021-SB2615-Introduced.html

MISSISSIPPI LEGISLATURE

2021 Regular Session

To: Judiciary, Division A

By: Senator(s) Fillingane

Senate Bill 2615

AN ACT TO AMEND SECTION 43-19-48, MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE DEPARTMENT OF HUMAN SERVICES TO USE ADDITIONAL METHODS OF COMMUNICATION TO SEND NOTICES RELATING TO ENCUMBRANCES OF ASSETS FOR CHILD SUPPORT TO FINANCIAL INSTITUTIONS IF ALLOWED BY THE FINANCIAL INSTITUTIONS; TO CREATE NEW SECTION 43-19-36, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT CHILD SUPPORT OBLIGATIONS SHALL BE SUSPENDED BY OPERATION OF LAW FOR PERSONS ORDERED TO PAY CHILD SUPPORT WHO ARE INCARCERATED OR INVOLUNTARILY INSTITUTIONALIZED FOR MORE THAN 180 DAYS, WITH CERTAIN EXCEPTIONS; TO PROVIDE THAT THE CHILD SUPPORT OBLIGATION WILL RESUME 60 DAYS AFTER THE NONCUSTODIAL PARENT IS RELEASED FROM INCARCERATION, AND THE NONCUSTODIAL PARENT'S CHILD SUPPORT ORDER AND OBLIGATION WILL BECOME ENFORCEABLE ON THAT DATE; TO AUTHORIZE THE DEPARTMENT OF HUMAN SERVICES WHEN ENFORCING A CHILD SUPPORT ORDER TO ADMINISTRATIVELY ADJUST THE ARREARS BALANCE FOR AN ORDER FOR CHILD SUPPORT THAT WAS SUSPENDED BECAUSE OF INCARCERATION OR INSTITUTIONALIZATION UNDER CERTAIN CONDITIONS AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 43-19-48, Mississippi Code of 1972, is amended as follows:

43-19-48. (1) The Department of Human Services and financial institutions doing business in the state are required to enter into agreements:

(a) To develop and operate a data match system, using automated data exchanges, in which each such financial institution is required to provide for each calendar quarter the name, record address, social security number or other taxpayer identification number, and other identifying information for each noncustodial parent who maintains an account at such institution and who owes past-due support, as identified by the Department of Human Services by name and social security number or other taxpayer identification number;

(b) To encumber or surrender, as the case may be, assets held by such institution on behalf of any noncustodial parent who is subject to a child support lien; and

(c) To provide for payment of reasonable fees to financial institutions for conducting data matches, and for responding to other requests made pursuant to this section, with such fees not to exceed the actual costs incurred by such financial institutions.

(2) When the operation of such data match system results in the location of an account of a noncustodial parent who owes past-due support, or when such account is located through any means, the department may request and shall receive additional financial or other information including account numbers, names and social security numbers on record for accounts, and account balances, from any financial institution needed to establish, modify or enforce a support order.

(3) The department shall have the authority to encumber and seize assets held by an obligor in a financial institution doing business in Mississippi. Such assets shall be encumbered for either:

(a) A forty-five-day period; or

(b) Until such time as the issue of overdue support is resolved, provided the obligor has filed a petition for hearing with a court of appropriate jurisdiction and the financial institution receives written notice thereof from the department before the end of the said forty-five-day period.

(4) Notice of such encumbrance initiated by the department shall be provided to the financial institution and to the obligor:

(a) The department shall send, by certified mail, or other approved types of communication allowed by the financial institution, notice to the financial institution with which the account is placed, directing that the financial institution shall:

(i) Immediately encumber funds in any account(s) in which the obligor has an interest, and to the extent of the debt indicated in the notice from the department;

(ii) Forward the encumbered funds to the department after either the forty-five-day period stated in subsection 3(a) of this section, or a determination favorable to the department by a court of appropriate jurisdiction; or

(iii) In the event the obligor prevails before the court, immediately release said funds to the obligor.

(b) Notice shall be delivered to the obligor at the current mailing address as recorded by the department. Such notice shall be sent by regular mail at the commencement of the action described herein.

(c) The financial institution shall not disclose to an account holder or the depositor that the name of such person has been received from or furnished to the department. The financial institution shall disclose to its account holders or its depositors that under the data match system the department has the authority to request certain identifying information on the account holders' or the depositor's accounts.

(5) Challenges to encumbrance of an account:

(a) Challenges to such levy for child support arrearage may be initiated only by the obligor or by an account holder of interest.

(b) Challenges shall be made by the filing of a petition for hearing by the obligor in a court of appropriate jurisdiction under Rule 81(d)(2) of the Mississippi Rules of Civil Procedure. Service upon the department shall be as prescribed by Rule 4(d)(5) of the Mississippi Rules of Civil Procedure.

(i) Mistakes of identity; or

(ii) Mistakes in amount of overdue support.

(6) Liability of the financial institution and the department:

(a) Neither the department nor the financial institution shall be liable for any applicable early withdrawal penalties on the obligor's account(s).

(b) A financial institution shall be absolutely immune from any civil liability under any law or regulation to any person for the disclosure of or failure to disclose any information pursuant to this chapter or for the escrow, encumbrance, seizure or surrender of any assets held by the financial institution in response to any notice issued by the Department of Human Services, the Child Support Unit or any contractors or agents thereof unless the disclosure or failure to disclose was willful or intentional, or for any other action taken in good faith to comply with the requirements of this chapter.

(7) Any amount encumbered and forwarded by the financial institution under this section shall not exceed the arrearage owed by the obligor.

(8) The provisions herein and any other relevant sections shall be employed equally by authorized contractors of the department to collect delinquent support payments.

(9) A financial institution shall not be liable under federal or state law to any person:

(a) For any disclosure of information to the Department of Human Services;

(b) For encumbering or forwarding any assets held by such financial institution in response to a notice of lien or levy;

(10) Definitions. For purposes of this section:

(a) The term "financial institution" has the meaning given to such by Section 81-12-3, Mississippi Code of 1972, and shall include, but not be limited to, credit unions, stock brokerages, public or private entities administering retirement, savings, annuities, life insurance and/or pension funds;

(b) The term "account" means any money held in the name of the account owner individually or jointly with another, including, but not limited to, a * * * ~~demand~~ deposit account, demand account, member account, time certificate of deposit, share accounts, checking or negotiable withdrawal order account, savings account, time deposit account or money-market mutual fund account.

(11) Failure to comply with the provisions of this section or the willful rendering of false information shall subject the financial institution to a fine of not less than One Thousand Dollars ($1,000.00).

SECTION 2. The following shall be codified as Section 43-19-36, Mississippi Code of 1972:

43-19-36. (1) For the purposes of this section, the following terms shall be defined as provided in this subsection:

(a) "Incarcerated" or "involuntarily institutionalized" includes, but is not limited to, involuntary confinement to a federal or state prison or correctional facility, a county jail, a juvenile detention center or a mental health facility. This term does not include probation or work release.

(b) "Child support obligation" means the payment due on the current child support order, an arrears payment on a preexisting arrears balance, or interest on arrears.

(c) "Suspension" means a child support obligation being administratively set to Zero Dollars ($0.00) and the interest rate on preexisting arrears being administratively set to zero percent (0%) for the period in which the person owing support is incarcerated or involuntarily institutionalized, and prevents the accrual of arrears during that period of incarceration.

(2) Child support obligations shall be suspended, by operation of law, for any period exceeding one hundred eighty (180) consecutive days in which the person ordered to pay support is incarcerated or involuntarily institutionalized, unless either of the following conditions exist:

(a) The person owing support has the means to pay support in accordance with the guidelines established in Section 43-19-101 and 43-19-103 while incarcerated or involuntarily institutionalized; or

(b) The person owing support was incarcerated or involuntarily institutionalized for an offense constituting domestic violence under Section 97-3-7, child abuse under Section 97-5-39, or criminal nonpayment of child support under Section 97-5-3.

(3) The child support obligation will resume the first day of the month following the expiration of sixty (60) days after the date the noncustodial parent is released from incarceration, and the noncustodial parent's child support order and obligation will become enforceable on that date. This section does not preclude a person owing support from seeking a modification of the child support order based on a change in circumstances or other appropriate reason.

(4) (a) The Department of Human Services enforcing a child support order under Title IV D of the Social Security Act (42 USC Section 651 et seq.) may, upon written notice of the proposed adjustment to the obligor and the obligee, administratively adjust the arrears balance for an order for child support suspended under subsection (2) of this section if all of the following occur:

(i) The department verifies that arrears were accrued in violation of this section;

(ii) The department verifies that neither of the conditions set forth in paragraph (a) or (b) of subsection (2) of this section exist; and

(iii) Neither the support obligor nor obligee objects in writing within thirty (30) days of receipt of the notice of proposed adjustment by the department.

(b) If either the support obligor or obligee objects to the administrative adjustment set forth in this subsection, the department shall file a petition with the court for a determination of the arrears balance.

(c) The department may perform this adjustment without regard to whether it was enforcing the child support order at the time the parent owing support qualified for relief under this section.

(5) This section does not prohibit the department or a party from petitioning a court for a determination of child support or arrears amounts.

(6) This section applies to every child support obligation in which the person who is ordered to pay is incarcerated for one hundred eighty (180) days after the enactment of this section.

SECTION 3. This act shall take effect and be in force from and after July 1, 2021.