HB 0726

This bill directs the department of health and human services to collect and enforce spousal support orders in the same manner that child support obligations are enforced.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 New Paragraph; Human Service; Duties of Department of Health and Human Services; Enforcement of Spousal Support Orders. Amend RSA 161:2 by inserting after paragraph XVII the following new paragraph:

XVIII. COLLECTION OF SPOUSAL SUPPORT. Establish, direct, and maintain a program of spousal support enforcement. The commissioner may take such action as the commissioner deems appropriate to enforce support obligations against persons owing a duty to pay spousal support. The commissioner is authorized to enter into agreements with any individual, state, or local agency, or governmental body and may employ such assistants as may be necessary to carry out the purpose of this paragraph. The commissioner shall accept spousal support cases in which the department of health and human services is ordered by the court to collect and enforce an obligation for support and may accept such additional cases as the commissioner deems appropriate. Notwithstanding any provision of state law limiting the application of such law to child support, any action authorized by statute relative to child support enforcement may be taken to collect and enforce spousal support obligations; provided, however, that if such spousal support obligation has been terminated by court order or by operation of law the commissioner shall close the case.

2 Human Services; Rulemaking; Spousal Support. RSA 161:4-a, IX is repealed and reenacted to read as follows:

IX. The establishment and maintenance of a program for the collection and enforcement of spousal support orders, including:

(a) The establishment of such reasonable standards as the commissioner deems necessary to limit applications for spousal support services based on the consideration of income, property, or other resources available to support the person for whom a support obligation exists.

(b) The establishment of a fee to compensate the department for services rendered in the establishment or enforcement of support obligations; including criteria for the waiver of any such fee.

3 New Paragraphs; Annulment, Divorce, and Separation; Alimony; Enforcement. Amend RSA 458:19 by inserting after paragraph VII the following new paragraphs:

VIII. All alimony payments ordered or administered by the court under this chapter shall be deemed judgments when due and payable. Such judgments shall be given full faith and credit by all jurisdictions of this state.

IX. Liens shall arise by operation of law against real and personal property for alimony arrearages owed by an obligor who resides or owns property in the state and shall incorporate any unpaid alimony which may accrue in the future. Full faith and credit shall be given to such liens arising in another state when the state agency, a party, or other entity authorized to enforce an order of support and seeking to perfect the lien complies with the procedural rules relating to recording or serving liens. Notwithstanding any law to the contrary, such rules may not require judicial notice prior to perfecting the lien. Notices of such liens, and any discharges or releases thereof, shall be filed in the office of the secretary of state with respect to personal property and in the registry of deeds for the county in which any real property is located. No fees shall be charged for such filings and recordings.

X. No modification of an alimony order shall alter any arrearages due prior to the date of filing the motion for modification.

XI. All alimony orders issued or modified in cases that are payable through the department shall contain a provision requiring the obligor to keep the department informed of the name and address of the obligor's employer and whether the obligor has access to health insurance, and, if so, the health insurance policy information as requested by the department.

XII. In any proceeding to enforce the payment of alimony, the posting of bail shall be for the purpose of securing the appearance of the alimony obligor and to guarantee the alimony judgment owed by the alimony obligor. If an alimony obligor defaults for failure to appear or owes an alimony arrearage, any bail money posted by the obligor, or any other surety, which is on deposit with the court shall be forfeited and paid to the obligee or the agency enforcing the order for alimony in satisfaction of the alimony judgment.

XIII. Any motion for contempt of a court order regarding nonpayment of alimony shall be reviewed by the court within 30 days.

4 Domestic Relations, Income Assignment; Department of Health and Human Services as Responsible Agency; Collection of Spousal Support. Amend RSA 458-B:3, I to read as follows:

I. The department shall be the agency responsible for the administration of this chapter for child support orders, spousal support orders, and combination child support and spousal support orders when an application for services under Title IV-D of the Social Security Act has been filed with the department. [~~The department does not administer orders providing only for spousal support.~~]

The Department of Health and Human Services stated this bill will increase state expenditures by $819,750 in FY 2004 and $1,626,137 in FY 2005 and each year thereafter. There will be an indeterminable fiscal impact on state revenue. There will be no fiscal impact on county and local revenue or expenditures.

The Department stated that federal regulations do not permit the use of Title IV-D funds for spousal support-only cases. Violation would result in the loss of federal Title IV-D revenue for child support operating and administrative expenditures and 5% of the state's TANF Block Grant totaling approximately $15,746,595. The Department provided cost estimates based on the assumption that separate staff and a separate computer system would be sufficient to avoid sanctions or loss of Title IV-D revenue. The computer system is necessary to automate the collection and enforcement of support collections. Based on the cost of the current Child Support System (NECSES), the Department estimated the system would cost $15,000,000, have a life of 10 years, and assumed expenditures of $1,500,000 per year for the system

Based on 2001 information from the Bureau of Vital Statistics, there are approximately 2,100 decrees for divorce, legal separation, or annulment per year where no children resulted from the marriage. In addition, the Department expects to receive some applications based on decrees from other jurisdictions where the applicant has moved into New Hampshire, and some more applicants from preexisting support orders prior to the effective date of this bill. The Department stated the average support order caseload for a child support officer is between 500 and 700 per year, therefor, at least three officers would be needed for the estimated caseload. Equipment costs for each new position include workspace, a computer and necessary furniture.

FY 2004 FY 2005 FY 2006 FY 2007

Three Support Officers (LG 20) $ 45,272 $ 90,543 $ 90,543 $ 90,543

Benefits @ 37% 16,751 33,501 33,501 33,501

Current Expense 852 1,703 1,703 1,703

In-state Travel 195 390 390 390

Equipment 6,680 0 0 0

Computer System 750,000 1,500,000 1,500,000 1,500,000

Total $819,750 $1,626,137 $1,626,137 $1,626,137

The Department stated this bill authorizes the Department to establish fees to compensate the state for services provided. The Department is not able to estimate the additional revenue attributable to the fee or how many fees will be collected. Based on the estimated cost of $1,626,137 and caseload of at least 2,100, the fee per case necessary to cover expenditures would be just under $800.