Relating To Child Support.
The enactment of SB95 could potentially increase the funds available to Hawaii's neediest families by approximately $1.5 million, despite an anticipated loss of $675,000 in state revenue due to changes in how TANF eligibility is calculated. By disregarding passed-through child support payments when assessing income for TANF benefits, the bill aims to improve the financial situation of families receiving assistance. This legislative change is seen as an opportunity to better align state practices with the recommendations set forth in the federal Deficit Reduction Act of 2005, which encourages states to adopt similar child support pass-through policies.
Senate Bill 95 aims to reform the child support system in Hawaii, specifically targeting the way child support payments are handled for custodial parents receiving Temporary Assistance for Needy Families (TANF). Under the current law, custodial parents can lose out on child support payments as the state retains a significant portion of these funds. SB95 seeks to mandate that certain child support payments collected by the Department of Human Services (DHS) must pass through directly to the families. This would allow families to benefit more directly from child support payments, thereby reducing the financial burden on low-income households.
There are several points of contention surrounding SB95, primarily related to the increased fines that employers may face for non-compliance with child support withholding orders. The bill proposes to raise the penalty for employers who take disciplinary actions against non-custodial parents due to income withholding or who fail to comply with income assignment orders. Critics might argue that increased penalties could create additional burdens on employers, while proponents would emphasize the importance of ensuring that child support obligations are met to support children in need.
Additionally, the bill stipulates that passed-through child support payments should not be counted as income for TANF eligibility purposes. This provision could have significant implications for how families navigate public assistance, potentially allowing them to access more support without being penalized for receiving child support. The comprehensive nature of SB95 reflects a growing recognition of the critical role that stable financial support plays in the welfare of children and families.