Relating To Child Support.
The proposed law would require the Department of Human Services to pass through specific amounts of child support collected and to disregard these payments when calculating the household income for public assistance programs. This change aims to enhance the economic support for low-income families while potentially leading to an increase in state expenditures due to lost revenue from federal assistance programs. However, the State would see overall benefits as it would direct more funds to needy families, estimated at an additional $1.5 million per year.
SB2185 seeks to reform Hawaii's child support system by modifying the flow of child support payments for families receiving Temporary Assistance for Needy Families (TANF). Currently, custodial parents on TANF do not receive any of the child support they are owed, as these payments are sent to the State, which retains a portion before sending the remainder to the federal government. The bill proposes a system where certain child support payments will pass through directly to families, thus allowing custodial parents to receive more financial support for their children.
One notable point of contention surrounding SB2185 is the impact of increased employer penalties for non-compliance with child support orders. The bill intends to raise the maximum fine for employers who fail to comply with income withholding orders, which could create resistance among employers who are concerned about the financial implications of stricter enforcement measures. Critics may argue that these changes could also place an undue burden on businesses that already struggle to manage various regulatory demands.