HOUSE OF REPRESENTATIVES

H.B. NO.

1953

TWENTY-NINTH LEGISLATURE, 2018

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to child support orders.

 

 

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

 


     SECTION 1.  The legislature finds that custodial parents receiving child support funds from noncustodial parents are fiduciaries with respect to the child support funds.  Therefore, custodial parents have an obligation to spend funds received in compliance with the child support order, which courts draft with the best interests of the child in mind.  The legislature also finds that while Hawaii law provides mechanisms to ensure that noncustodial parents pay child support, there are no similar mechanisms to ensure that custodial parents spend child support funds in a manner consistent with the child support order.

     Studies have shown that a major reason why noncustodial parents sometimes do not comply with their child support obligations is because of concerns that custodial parents will not spend the funds in accordance with the child support orders.  Therefore, creating a mechanism for noncustodial parents to ensure that custodial parents are spending child support funds properly will promote compliance with child support orders on the part of both parents.

     The purpose of this Act is to ensure that the best interests of the child are being met by:

     (1)  Creating a mechanism for the child support enforcement agency, on its own initiative or upon petition by a noncustodial parent, to require a custodial parent to provide evidence that child support funds are being spent in compliance with a child support order; and

     (2)  Allowing a noncustodial parent to petition the family court to modify a child support order if the custodial parent does not provide evidence of compliance with the order.

     SECTION 2.  Chapter 576D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§576D-     Custodial parent; evidence of compliance.  (a)  The agency, upon its own initiative or upon petition by the obligor, may require a custodial parent to provide evidence to the agency showing that the custodial parent has expended child support funds in compliance with an order of support.

     (b)  If the custodial parent refuses or does not provide evidence of compliance within thirty days of a request made under subsection (a), the agency shall:

     (1)  Continue to collect child support from the obligor pursuant to section 576D-10;

     (2)  Withhold disbursal to the custodial parent any portion of the child support funds that are in dispute by the obligor;

     (3)  Hold the disputed funds in trust, pending the outcome of the procedures in subsections (c), (d), and (e);

     (4)  Continue to disburse to the custodial parent the portion of the child support funds that are not in dispute;

     (5)  Notify the obligor of the custodial parent's failure to submit evidence of compliance; and

     (6)  Notify both the obligor and the custodial parent that the custodial parent's failure to submit evidence of compliance:

          (A)  Qualifies as a substantial or material change of circumstances; and

          (B)  Grants the obligor the right to petition the family court for review and adjustment of the existing support order.

     (c)  If the obligor does not file a petition to the family court within thirty days of the date of the notification provided pursuant to subsection (b)(6), the agency shall:

     (1)  Transfer any child support funds being held in trust in accordance with subsection (b)(3) to the custodial parent; and

     (2)  Continue to disburse to the custodial parent all child support funds collected from the obligor pursuant to the existing support order.

     (d)  If the obligor files a petition to the family court within thirty days of the date of the notification provided pursuant to subsection (b)(6), the agency shall:

     (1)  Continue to collect child support from the obligor pursuant to section 576D-10;

     (2)  Continue to disburse to the custodial parent the portion of the child support funds that are not in dispute;

     (3)  Withhold disbursal to the custodial parent any portion of the child support funds that are in dispute; and

     (4)  Hold the disputed funds in trust until the agency receives an order from the family court regarding the disbursal of the funds.

The agency shall disburse the funds in accordance with the order within fifteen days of the date of the order."

     SECTION 3.  Section 571-52.6, Hawaii Revised Statutes, is amended to read as follows:

     "§571-52.6  Child support order, judgment, or decree; accident and sickness insurance coverage.  Each order, judgment, or decree under this chapter or chapter 576B, 580, or 584 ordering a person to pay child support shall include the following provisions:

     (1)  Both the obligor and the obligee are required to file with the state case registry, through the child support enforcement agency, upon entry of the child support order and to update as appropriate, information on the identity and location of the party, including social security number, residential and mailing addresses, telephone number, driver's license number if different from social security number, and name, address, and telephone number of the party's employer; [and]

     (2)  The liability of that person for accident and sickness insurance coverage when available at reasonable cost[.];

     (3)  A declaration that the obligee shall spend all child support funds in accordance with the order, judgment, or decree; and

     (4)  If the obligee spends any portion of the child support funds in a manner that is not in accordance with the order, judgment, or decree, the misuse may:

          (A)  Constitute a substantial or material change of circumstances that justifies modification of the order of child support, pursuant to the procedure in section 576D-   ; and

          (B)  Be cause for forfeiture of the misused funds pursuant to an order of the court."

     SECTION 4.  Section 576D-1, Hawaii Revised Statutes, is amended by amending the definition of "compliance with an order of support" to read as follows:

     ""Compliance with an order of support" means that [an]:

     (1)  An obligor:

     [(1)]     (A)  Is not delinquent in payments in an amount equal to or greater than the sum of payments for child support for a three-month period with regard to driver's licenses and recreational licenses and a six-month period with regard to professional and vocational licenses; or

     [(2)]     (B)  Has obtained or maintained health insurance coverage as required by a child support order[.]; or

     (2)  A custodial parent's expenditure of child support funds are in compliance with the terms of a child support order."

     SECTION 5.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 6.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 7.  This Act shall take effect upon its approval.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Child Support; Enforcement; Evidence of Compliance; Modification

 

Description:

Allows the child support enforcement agency, at the request of a noncustodial parent or on its own initiative, to require a custodial parent to provide evidence that child support funds are being spent in compliance with an order of support.  Allows a noncustodial parent to petition the family court for modification of a child support order if the custodial parent does not provide the requested evidence.  Requires the child support enforcement agency to hold the portion of disputed child support funds in trust pending the final disposition of the petition.

 

 

 

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