requires two-thirds majority vote (§ 1)                                                                                                                 

                                                                                                  

 

Assembly Bill No. 475–Committee on Ways and Means

 

(On Behalf of the Department of Administration)

 

March 24, 2003

____________

 

Referred to Concurrent Committees on Judiciary
and Ways and Means

 

SUMMARY—Makes various changes concerning obligations of support for children. (BDR 3‑1246)

 

FISCAL NOTE:  Effect on Local Government: No.

                           Effect on the State: No.

 

~

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to obligations of support for children; imposing a fee upon an obligor each time an employer withholds income for the payment of support for a child; revising the procedure for enrolling a child in a plan of health insurance pursuant to a court order for support to comply with the requirements of federal law; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1  Section 1.  Chapter 31A of NRS is hereby amended by adding

1-2  thereto a new section to read as follows:

1-3  1.  The State Treasurer shall charge an obligor a fee of $2 for

1-4  each withholding of income for the payment of support made by

1-5  an employer pursuant to this chapter.

1-6  2.  All such fees received by the State Treasurer from

1-7  employers pursuant to NRS 31A.080 must be accounted for

1-8  separately in the State General Fund.

1-9  3.  The account created pursuant to subsection 2 must be

1-10  administered by the State Welfare Administrator. The money in

1-11  the account must be distributed among each enforcing authority

2-1  pursuant to regulations adopted by the State Welfare

2-2  Administrator pursuant to NRS 425.365.

2-3  Sec. 2.  NRS 31A.070 is hereby amended to read as follows:

2-4  31A.070  1.  The enforcing authority shall mail, by first-class

2-5  mail, a notice to withhold income to an obligor’s employer:

2-6  (a) If the provisions of subsection 2 of NRS 31A.025 apply,

2-7  immediately upon determining that the obligor is delinquent in the

2-8  payment of support; or

2-9  (b) If the provisions of subsection 2 of NRS 31A.025 do not

2-10  apply, immediately upon the entry of the order of support.

2-11      2.  If an employer of an obligor does not begin to withhold

2-12  income from the obligor after receiving the notice to withhold

2-13  income that was mailed pursuant to subsection 1, the enforcing

2-14  authority shall mail, by certified mail, return receipt requested,

2-15  another notice to withhold income to the employer.

2-16      3.  A notice to withhold income may be issued electronically

2-17  andmust:

2-18      (a) Contain the social security number of the obligor;

2-19      (b) Specify the amount to be withheld from the income of the

2-20  obligor;

2-21      (c) Specify the [amount of the fee] amounts of the fees

2-22  authorized in NRS 31A.090 [for the employer;] and required in

2-23  section 1 of this act;

2-24      (d) Describe the limitation for withholding income prescribed in

2-25  NRS 31.295;

2-26      (e) Describe the prohibition against terminating the employment

2-27  of an obligor because of withholding and the penalties for

2-28  wrongfully refusing to withhold pursuant to the notice to withhold

2-29  income;

2-30      (f) Specify that, pursuant to NRS 31A.160, the withholding of

2-31  income to enforce an order of a court for child support has priority

2-32  over other proceedings against the same money; and

2-33      (g) Explain the duties of an employer upon the receipt of the

2-34  notice to withhold income.

2-35      Sec. 3.  NRS 31A.080 is hereby amended to read as follows:

2-36      31A.080  An employer who receives a notice to withhold

2-37  income shall:

2-38      1.  Withhold the amount stated in the notice from the income

2-39  due the obligor beginning with the first pay period that occurs

2-40  within 14 days after the date the notice was mailed to the employer

2-41  and continuing until the enforcing authority notifies him to

2-42  discontinue the withholding;

2-43      2.  Deliver the money withheld to the enforcing authority within

2-44  7 days after the date of each payment of the regularly scheduled

2-45  payroll of the employer; [and]

3-1  3.  Deduct from the income due the obligor after the

3-2  withholding pursuant to subsection 1, the fee set forth in section 1

3-3  of this act;

3-4  4.  Deliver to the State Treasurer, at least quarterly, all money

3-5  deducted as fees pursuant to subsection 3; and

3-6  5.  Notify the enforcing authority and the State Treasurer when

3-7  the obligor subject to withholding terminates his employment, and

3-8  provide the last known address of the obligor and the name of any

3-9  new employer of the obligor, if known.

3-10      Sec. 4.  NRS 31A.090 is hereby amended to read as follows:

3-11      31A.090  1.  A notice to withhold income is binding upon any

3-12  employer of an obligor to whom it is mailed. To reimburse the

3-13  employer for his costs in making the withholding, he may deduct $3

3-14  from the amount paid the obligor each time he makes a withholding.

3-15      2.  If an employer receives notices to withhold income for more

3-16  than one employee, he may [pay the] consolidate the amounts of

3-17  money that are payable to:

3-18      (a) The enforcing authority [the amounts withheld] and pay

3-19  those amounts with one [check, but he] check; and

3-20      (b) The State Treasurer and pay those amounts with one

3-21  check,

3-22  but the employer shall attach to [the] each check a statement

3-23  identifying by name and social security number each obligor for

3-24  whom payment is made and the amount transmitted for that obligor.

3-25      3.  An employer shall cooperate with and provide relevant

3-26  information to an enforcing authority as necessary to enable it to

3-27  enforce an obligation of support. A disclosure made in good faith

3-28  pursuant to this subsection does not give rise to any action for

3-29  damages resulting from the disclosure.

3-30      Sec. 5.  NRS 31A.350 is hereby amended to read as follows:

3-31      31A.350  1.  If a court orders a parent to obtain health

3-32  insurance for his child and the parent fails to [comply with the

3-33  order,] enroll the child and provide written proof to the enforcing

3-34  authority, the enforcing authority shall mail to the parent’s

3-35  employer or labor organization by first-class mail, a notice requiring

3-36  the employer or organization to enroll the child in the plan of health

3-37  insurance provided for his employees or its members. [The notice

3-38  must include:

3-39      (a) The parent’s name and social security number;

3-40      (b) A statement that the parent has been required by an order of

3-41  the court to obtain and maintain health insurance for his child;

3-42      (c) The name, date of birth and social security number for the

3-43  child; and

4-1  (d) A statement that any assistance needed to complete the

4-2  enrollment of the child in a plan of health insurance may be

4-3  obtained from the parents of the child and the enforcing authority.

4-4  2.  Except as otherwise provided in subsection 6, no enforcing

4-5  authority may mail or cause to be mailed a notice to enroll pursuant

4-6  to subsection 1 unless:

4-7  (a) The enforcing authority first notifies the parent by certified

4-8  mail at his last known address of:

4-9       (1) Its intent to seek enrollment of the child; and

4-10          (2) The provisions of subsection 6; and

4-11      (b) The parent fails, within 15 days after the notice is mailed, to

4-12  provide written proof to the enforcing authority that:

4-13          (1) The parent has enrolled the child in a plan of health

4-14  insurance required by the order of the court; or

4-15          (2) The coverage required by the order of the court was not

4-16  available at a reasonable cost for more than 30 days before the date

4-17  on which the notice was mailed.

4-18      3.] The Welfare Division shall, by regulation, prescribe the

4-19  content of the notice and establish procedures for providing the

4-20  notice to ensure compliance with federal law.

4-21      2.  Except as otherwise provided in this subsection, upon

4-22  receipt of a notice to enroll, mailed pursuant to subsection 1, the

4-23  employer or labor organization shall enroll the child named in the

4-24  notice in the plan of health insurance provided for his employees or

4-25  its members. The child must be enrolled without regard to any

4-26  restrictions upon periods for enrollment. If more than one plan is

4-27  offered by the employer or labor organization, and each plan may be

4-28  extended to cover the child, the child must be enrolled in the

4-29  parent’s plan. If the parent’s plan cannot be extended to cover the

4-30  child, the child must be enrolled in [the plan with the least expensive

4-31  option for providing] a plan that provides coverage for a dependent

4-32  that is otherwise available to the parent, subject to the eligibility

4-33  requirements of that plan. An employer, labor organization, health

4-34  maintenance organization or other insurer is not required to enroll

4-35  the child in a plan of health insurance if the child is not otherwise

4-36  eligible to be enrolled in that plan. If the child is not eligible to be

4-37  enrolled in the parent’s plan of health insurance, the employer or

4-38  labor organization shall notify the enforcing authority.

4-39      3.  The employer or labor organization shall transfer the

4-40  notice to enroll to the administrator that provides coverage

4-41  pursuant to the plan of health insurance for which the child is

4-42  eligible within 20 business days after the date of the notice to

4-43  enroll. The administrator shall fully complete and return the

4-44  response form to the enforcing authority within 40 business days

4-45  after the date of the notice.

5-1  4.  After the child is enrolled in a plan of health insurance, the

5-2  premiums required to be paid by the parent for the child’s coverage

5-3  [may] must be deducted from the parent’s wages. If the parent’s

5-4  wages are not sufficient to pay for those premiums, the employer or

5-5  labor organization shall notify the enforcing authority. A parent

5-6  may contest the withholding pursuant to NRS 31A.050.

5-7  5.  A notice to enroll sent pursuant to subsection 1 has the same

5-8  effect as an enrollment application signed by the parent. No

5-9  employer or labor organization may refuse to enroll a child because

5-10  a parent has not signed an enrollment application.

5-11      6.  [If the enforcing authority:

5-12      (a) Has complied with the requirements of subsection 2

5-13  regarding a parent; and

5-14      (b) Subsequently determines that the parent:

5-15          (1) Has another employer or belongs to another labor

5-16  organization; and

5-17          (2) Does not have the child enrolled in a plan of health

5-18  insurance as required by the order of the court,

5-19  the enforcing authority shall, without again complying with the

5-20  requirements of subsection 2, mail pursuant to subsection 1 a

5-21  subsequent notice to enroll to the other employer or labor

5-22  organization. Any employer or labor organization receiving such a

5-23  notice shall notify the parent immediately of the receipt of that

5-24  notice and comply with the provisions of this section unless, within

5-25  20 days after the notice was mailed to the employer or labor

5-26  organization, the enforcing authority notifies the employer or labor

5-27  organization that the parent has provided the enforcing authority

5-28  with written proof that the parent has enrolled the child in a plan of

5-29  health insurance required by the order of the court.

5-30      7.] An employer or labor organization shall, without liability to

5-31  the parent, provide to the enforcing authority, upon request,

5-32  information about the name of the insurer and the number of the

5-33  parent’s policy of health insurance.

5-34      [8.] 7.  The enforcing authority may withhold wages or other

5-35  income and require withholding of state tax refunds whenever the

5-36  responsible parent has received payment from the third party and

5-37  not used the payment to reimburse the other parent or provider to

5-38  the extent necessary to reimburse the Medicaid agency.

5-39      [9.] 8.  The enforcing authority shall promptly notify the

5-40  employer or labor organization when there is no longer a current

5-41  order for medical support in effect for which the enforcing

5-42  authority is responsible.

5-43      9.  The employer shall notify the enforcing authority when the

5-44  parent subject to the notice to enroll terminates his employment,

6-1  and provide the last known address of the parent and the name of

6-2  any new employer of the parent, if known.

6-3  10.  If an employer or labor organization wrongfully refuses

6-4  to enroll a child in a plan of health insurance as required in this

6-5  section, or knowingly misrepresents that health insurance is not

6-6  available, the employer or labor organization may be held liable

6-7  for punitive damages and all unreimbursed medical expenses

6-8  incurred during the period in which insurance was not in effect.

6-9  11.  An employer, labor organization or enforcing authority

6-10  who complies with a notice to enroll that is regular on its face may

6-11  not be held liable in any civil action for any conduct taken in

6-12  compliance with the notice.

6-13      12.  The remedy provided by this section is in addition to, and

6-14  is not a substitute for, any other remedy available for the

6-15  enforcement of such an order.

6-16      Sec. 6.  The amendatory provisions of this act apply to

6-17  withholding of income for the payment of support for a child that is

6-18  withheld on or after July 1, 2003.

6-19      Sec. 7.  This act becomes effective on July 1, 2003.

 

6-20  H