ENGR. S. B. NO. 85 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 ENGROSSED SENATE BILL NO. 85 By: Daniels of the Senate and Kannady of the House An Act relating to child support; amending 12 O.S. 2021, Section 1171.2, which relat es to income assignment for child support; updating statutory references; amending 56 O.S. 2021, Sections 237.7 and 238.5A, which relate to definitions and use of child support guidelines; updating statutory language; modifying definition; requiring Department of Human Services to ensure review of certain orders; authorizing issuance of notice to modify c hild support order under certain circumstances; requiring Department to provide certain notice; providing for service of certain notice; requiring Department to set hearing upon request; requiring notice of certain hearing; requiring submission of certain orders to the administrative court; requiring review of certain order; requiring filing of certain administrative order in district court; authorizing appeal of certain administrative orders; requiring Department to promulgate certain rules; updating statutory references; repealing 43 O.S. 2021, Section 118.1, which relates to Department review of child support orders; making language gender neutral; and providing an effective date. BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. AMENDATORY 12 O.S. 2021, Section 1171.2, is amended to read as follows: Section 1171.2. A. Any person awarded custody of and support for a minor child by the district court or awarded perio dic child ENGR. S. B. NO. 85 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 support payments by the Department of Human Services, or the Department of Human Services on behalf of a recipient of Temporary Assistance for Needy Families or on behalf of a person not receiv ing Temporary Assistance for Needy Families shall be entitled to proceed to collect any current child support and child sup port due and owing through income assignment pursuant to the provisions of this section and Section 1171.3 of this title or Section 237.7 and Sections 240 240.1 through 240.3 of Title 56 of the Oklahoma Statutes or by garnishment, if the minor child is in the custody and care of the person entitled to receive the child support or as is otherwise provided by the court or administrative order at the time of t he income assignment or garnishm ent proceedings. B. The maximum part of the aggregate disposable earnings of any person for any workweek which is subject to garnishment or income assignment for the support of a minor child shall not exceed: 1. Fifty percent (50%) of such person ’s disposable earnings for that week, if such person is supporting his or her spouse or a dependent child other than the child with respect to whose support such order is used; and 2. Sixty percent (60%) of such person ’s disposable earnings for that week if such person is not supporting a spouse or dependent child. The fifty percent (50%) specified in paragraph 1 of this subsection shall be deemed to be fifty -five percent (55%) and the sixty percent ENGR. S. B. NO. 85 Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 (60%) specified in paragraph 2 of this subsection shall be deemed to be sixty-five percent (65%), if and to the extent that such earnings are subject to garnishment o r income assignment to enforce a support order with respect to a period which is prior to the twelve -week period which ends with the beginning of such workweek. C. When responding to a notice of income assignment pursuant to Section 1171.3 of this title a nd a National Medical Support Notice issued pursuant to Section 118.1 118.2 of Title 43 and Section 6058A of Title 36 of the Oklahoma Statutes, the payor shall al locate available income in the following priority: 1. Current child and spousal support; 2. Health insurance premiums; 3. Arrearages; and 4. Other child support obligations. If after payment of current child and s pousal support there is insufficient income to pay the premiums necessary to provide dependent health insurance, the payor shall allocate t he remaining withholding to arrearages and then to other child support obligations. An obligor may voluntarily elect to have the payor withhold amounts in excess of the limits in subsection B of this section to pay the obligor ’s portion of the health insu rance premium for a dependent child. SECTION 2. AMENDATORY 56 O.S. 2021, Section 237.7, is amended to read as follows: ENGR. S. B. NO. 85 Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Section 237.7. For the purposes of Sections 237 through 240.23 of this title: 1. The “Child Support Enforcement Division of the Department of Human Services”, hereinafter referred to as the “Division” or as the “Department”, is the state agency designated to admini ster the child support enforcement program for the State of Oklahoma this state and its District Offices district offices, which may be administered through contract or cooperative agreements . The District Offices district offices provide enforcement services to individuals receiving Temporary Assistance for Needy Families, hereinafter referred to as “TANF”, and to individuals not receiving TANF who have made proper application for enforcement services to the Division; 2. “Director” means the Director of the Department of Human Services who shall have the authority to enter orders in appropriate cases or as otherwise provided by law, without the necessity of an additional signature of a district or administra tive judge; 3. “Office of Administrat ive Hearings: Child Support (Legal Division, Department of Human Services, State of Oklahoma) ”, hereinafter referred to as “OAH”, conducts child support enforcement administrative hearings. All hearings are conducted by administrative law judges assigned to OAH; 4. “Support debt” means a debt owed to the State of Oklahoma this state by the natural, legal or adoptive parents who are ENGR. S. B. NO. 85 Page 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 responsible for support of a child or children receiving public assistance money from the Depar tment or the reasonable expenses o f providing for a child or children. The amount of the debt shall be determined in accordance with the provisions of Section 118 et seq. of Title 43 of the Oklahoma Statutes; 5. “Arrearage” or “past due support” means the total amount of unpaid support obliga tions; 6. “Delinquency” means any payment under an order for support which becomes due and remains unpaid; 7. a. “Gross income” or “income” means income from any source and includes, but is not limited to, income from salaries, wages, commissions, bonuses , dividends, severance pay, pensions, rent , interest income, trust income, annuities, compensation as an independent contractor, social security benefits, workers ’ compensation benefits, unemployment insurance benefits, disability insurance benefits, gifts , prizes, any form of periodic payment to an individual regardless of source, and any other payments made by any person, private entity, federal or state government, any unit of local government, school district, or any entit y created by law. Income specifically excluded are actual child support received for children not before the court and ENGR. S. B. NO. 85 Page 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 benefits received from means -tested public assistance programs, including but not limited to TANF, Supplemental Security Income (SSI), F ood Stamps, General Assistance and State Supplemental Payments for Aged, Blind, and the Disabled. b. For purposes of computing gross income of the parents, gross income shall include for each parent all actual monthly income described in this paragraph, th e average of the gross monthly income for the time actually employed duri ng the previous three (3) years, or the minimum wage paid for a forty -hour week, whichever is the most equitable. If equitable, gross monthly income for either parent may be imputed in an amount that a person with comparable education, training, and experience could reasonably expect to earn. If a person is permanently physically or mentally incapacitated, the child support obligation shall be computed on the basis of actual monthly gross income; 8. “Earnings” means amounts paid to a person as an employe e, including wages and salary; 9. “Disposable income” means income or earnings less any amounts required by law to be withheld including, but not limited ENGR. S. B. NO. 85 Page 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 to, federal, state, and loca l taxes, Social Security, and p ublic assistance payments; 10. “Obligor” means the person who is required to make payments under an order for support or the natural, legal, or adoptive parents who are responsible for the support of a child or children; 11. “Obligee” or “Person entitled” means: a. a person to whom a support deb t or support obligation is owed, b. the Department of Human Services or a public agency of another state that has the right to receive current or accrued support payments or that is p roviding support enforcement services, or c. a person designated in a sup port order or as otherwise specified by the court; 12. “Payor” means any person or entity paying monies, income, or earnings to an obligor. In the case of a self -employed person, the “payor” and “obligor” may be the same person; 13. “Support order” means an order for the payment of support issued by a district or administrative court of this state or by any court or agency of another state; 14. “Income assignment” means an assignment of a portion of the monies, income, or periodic earnings due and owing to the obligor to the person entitled to the support or to another person or entity designated by the support order or assignment for payment of ENGR. S. B. NO. 85 Page 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 support, the support debt, or arreara ges. In all child support cases wherein child support is being enforced pursuant to the state plan, the income of any obligor required by court or administrative order to pay support shall be subject by operation of law to immediate income assignments reg ardless of whether support paym ents by such obligor are in arrears. The assignment shall be in an amount which is sufficient to meet the periodic child support payments, other maintenance payments, payments on support debt and collection of past due suppo rt monies that have accrued und er a district or administrative court orde r. An income assignment shall be made a part of a support order or any order granting a judgment for a support debt or confirming the amount of the past due support, or a review or modification of a support order pursuant to Section 118.1 238.5A of Title 43 of the Oklahoma Statutes this title; 15. “Voluntary acknowledgment ” means a written acknowledgment executed by the obligor wherein the obligor acknowledges paternity, support liability, a support debt, or arrea rage amount, and agrees to a judgment and an immediate income assignment to pay monthly support and payments on the support debt or arrearage judgments; 16. “Notice” means a written announcement served upon an obligor, a custodial person or any person or entity which might be affected by the noti ced proceeding; ENGR. S. B. NO. 85 Page 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 17. “Licensing board” means any bureau, department, division, board, agency, or commission of this state or of a municipality in this state that issues a license; 18. “License” means a license, certificate, registration, permit, approval, or other similar document issued by a licensing board granting to an individual a right or privilege to engage in a profession, occupation, business, or industry, or any recreational license or permit including, b ut not limited to, a hunting and fishing license or other authorization issued pursuant to the Oklahoma Wildlife Conservation Code and certificates of Title for vessels and motors and other licenses or registrations issued pursuant to the Oklahoma Vessel a nd Motor Registration Act or a driver license or other permit issued pursuant to Title 47 of the Oklahoma Statutes; 19. “Commission” means the Commission for Human Services; 20. “Payment plan” includes, but is not limited t o, a plan approved by the suppo rt enforcement entity that provides suffic ient security to ensure compliance with a support order or that incorporates voluntary or involuntary income assignment or a similar plan for periodic payment of past -due support and, if applicable, current and future support; and 21. “Support” means all payments or other obligations due and owing to the obligee or person entitled by the obligor pursuant to a support order, and may include, but is not limited to, support ENGR. S. B. NO. 85 Page 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 alimony payments, child support, as defined by Section 1170 of Title 12 of the Oklahoma Statutes, and other expenses, requirements and obligations as specified in Section 118 et seq. of Title 43 of the Oklahoma Statutes. SECTION 3. AMENDATORY 56 O.S. 2021, Section 238.5A, i s amended to read as follows: Section 238.5A. The A. In all cases in which child support services are being provided under the state child support plan as provided in Section 237 of this title, the Department shall ensure that the amount of child support and other support shall be is ordered and reviewed in accordance with the child support guidelines provided in Section 118 et seq. of Title 43 of the Oklahoma Statutes. B. Whenever the Department determines that an order for child support may not be in accordance with the child support guidelines set forth in Section 118 et seq. of Title 43 of the Oklahoma Statutes, the Department may issue a notice to modify the order for child support. C. The Department shall serve notice on the obligor and the custodial person informing them of the following: 1. The style and case number of the child support order or orders being enforced by the Department; 2. The date the notice is issued; ENGR. S. B. NO. 85 Page 11 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 3. The initials and dates of birth of the child or children who are the subject or subjects of the order for child support; 4. The amount of the existing monthly child support obligations as defined in Section 118 et seq. of Title 43 of the Oklahoma Statutes; 5. That the monthly child support obligation may not be in compliance with the child support guidelines; 6. That according to informati on in the records of the Department, the order for child support and other support should be modified; 7. The proposed modified amount of child support that should be paid in accordance with the child support guidelines; 8. The proposed medical support order; 9. The proposed child care expenses; 10. The amount of past due support owed by the obligor and a monthly judgment payment if the Department is requesting a judgment ; 11. That unless either party requests a hearing, the proposed modified monthly child support and other support obligations shall become the monthly court-ordered child support amount ; 12. That the modification of the child support obligation shall be effective the first day of the month following the date the notice is issued; 13. That an immediate income assignment shall be ordered pursuant to Section 115 of Title 43 of Oklahoma Statutes; ENGR. S. B. NO. 85 Page 12 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 14. That all payments for child support shall be made to the Centralized Support Registry at the address specified in the notice pursuant to Section 413 of Title 43 of Oklahoma Statutes, and any payments made other than to the Centralized Support Registry may not be credited to the amount owed; 15. The address of record for the obligor and custodial person on file with the Central Case Registry, unless the Department has determined to keep such information confidential due t o reasonable evidence of domestic violence or child abuse , pursuant to Section 112A of Title 43 of Oklahoma Statutes; 16. That either party may request an administrative hearing on a form attached to the notice within twenty (20 ) days of the date the notice is served; and 17. That the notice shall become the order of modification and shall be filed with the clerk of the district court. Such order shall have the same legal e ffect as an order of the court. D. The notice provided for in this se ction shall be served by the Department upon the obligor and custodial pe rson as provided in Section 2004 of Title 12 of the Oklahoma Statutes, or if there is an address of record on fil e with the Central Case Registry pursuant to Section 112A of Title 43 of the Oklahoma Statutes, the noti ce may be served by regular mail at the address of record. E. Upon receipt of a timely request for hearing, the Department shall set the matter for a h earing. The obligor and custodial ENGR. S. B. NO. 85 Page 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 person shall be given notice of the hearing as provided in subsection B of Section 2005 of Title 12 of the O klahoma Statutes. The notice shall state that failure to appear at the scheduled hearing may result in the notice becoming the order of the court. F. When a timely hearing is not req uested, the Department shall submit to the administrative court an order confirming and incorporating the notice by reference. The court shall review to confirm jurisdiction, sufficien cy of the notice to modify, and service of process. The order shall be reviewed and signed by the court or returned to the Department with explanation. G. An administrative order shall be filed in the district court pursuant to Section 237.10 of this titl e. A final administrative order entered pursuant to th is section may be appealed in accordance with the requirements of Section 240.3 of this title. H. The Department shall promulgate rules as necessary to implement the provisions of this section . SECTION 4. REPEALER 43 O.S. 2021, Section 118.1, is hereby repealed. SECTION 5. This act shall become effec tive November 1, 2023. ENGR. S. B. NO. 85 Page 14 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Passed the Senate the 9th day of March, 2023. Presiding Officer of the Senate Passed the House of Representatives the ____ day of __________, 2023. Presiding Officer of the House of Representatives