Chapter 0455

Chapter 455 Oregon Laws 2001

AN ACT

SB 339

Relating to the administration of the child support program; creating new provisions; and amending ORS 25.010, 25.020, 25.240, 25.245, 25.287, 25.414, 25.417, 25.610, 25.620, 25.646, 25.750, 25.759, 29.125, 109.070, 109.252, 109.254, 110.304, 416.400, 416.480, 419C.597, 432.206, 461.715, and 656.234; and prescribing an effective date.

Be It Enacted by the People of the State of Oregon:

SECTION 1. ORS 25.010 is amended to read:

25.010. As used in ORS chapters [23] 25, 29, 107, [108,] 109[, 293,] and 416 [and 418] and ORS [25.010 to 25.243 and] 110.303 to 110.452 and any other statutes providing for support payments or support enforcement procedures, unless the context requires otherwise:

(1) “Administrator” means either the Administrator of the Division of Child Support of the Department of Justice or a district attorney, or the administrator’s or a district attorney’s authorized representative.

(2) “Department” means the Department of Justice.

(3) “Disposable income” means that part of the income of an individual remaining after the deduction from the income of any amounts required to be withheld by law except laws enforcing spousal or child support and any amounts withheld to pay medical or dental insurance premiums.

(4) “Employer” means any entity or individual who engages an individual to perform work or services for which compensation is given in periodic payments or otherwise.

(5) “Income” is any monetary obligation in excess of $4.99 after the fee described in ORS 25.414 (6) has been deducted that is in the possession of a third party owed to an obligor and includes but is not limited to:

(a) Compensation paid or payable for personal services whether denominated as wages, salary, commission, bonus or otherwise;

(b) Periodic payments pursuant to a pension or retirement program;

(d) Interest payments;

(e) Periodic payments from a trust account;

(f) Any program or contract to provide substitute wages during times of unemployment or disability;

(g) Any payment pursuant to ORS chapter 657; or

(h) Amounts payable to independent contractors.

(6) “Obligee” means a child or caretaker parent or custodian, spouse, former spouse or other dependent person for whose benefit a court or the administrator[, as defined in ORS 416.400,] has ordered a payment of support.

(7) “Obligor” means any person who has been ordered by a court or the administrator[, as defined in ORS 416.400,] to make payments for the support of a child or a caretaker parent or custodian, spouse, former spouse or other dependent person.

(8) “Order to withhold” means an order or other legal process that requires a withholder to withhold support from the income of an obligor.

(9) “Withholder” means any person who disburses income and includes but is not limited to an employer, conservator, trustee or insurer of the obligor.

SECTION 2. ORS 25.020 is amended to read:

25.020. (1) Support payments for or on behalf of any person, ordered, registered or filed pursuant to ORS chapter 25, 107, 108, 109, 110, 416, 419B or 419C, unless otherwise authorized by ORS 25.030, shall be made to the Department of Justice, as the state disbursement unit:

(a) During periods for which support is assigned pursuant to ORS 418.032, 418.042, 419B.406 or 419C.597;

(b) As provided by rules adopted pursuant to ORS 409.021 or under ORS 180.340, when public assistance as defined by ORS 411.010 is provided to a person who receives or has a right to receive support payments on the person’s own behalf or on behalf of another person;

(d) For any period during which support enforcement services are provided pursuant to the child support enforcement program created by Title IV-D of the Social Security Act or pursuant to ORS 25.080;

(e) When ordered by the court pursuant to ORS 419B.400;

(f) When a support order that is entered or modified on or after January 1, 1994, includes a provision requiring the obligor to pay support by income withholding; or

(g) When ordered by the court under any other applicable provision of law.

(2) The Department of Justice shall disburse payments, after lawful deduction of fees and in accordance with applicable statutes and rules, to those persons and entities that are lawfully entitled to receive such payments.

(3) The Department of Justice may immediately transmit payments received from any obligor who has not previously tendered any payment by a check or instrument which was not paid or was dishonored, to the obligee, without waiting for payment or clearance of the check or instrument received.

(4) The Department of Justice shall notify each obligor and obligee by mail when support payments shall be made to the Department of Justice and when the obligation to make payments in this manner shall cease. The department shall provide information about a child support account directly to a party to the support order regardless of whether the party is represented by an attorney. As used in this subsection, “information about a child support account” includes[,] but is not limited to the:

(a) Date of issuance of the support order.

(b) Amount of the support order.

(d) Dates and amounts of disbursements.

(e) Payee of any disbursements.

(f) Amount of any arrearage.

(g) Source of any collection.

(5) Any pleading for the entry or modification of a support order must contain a statement that payment of support under a new or modified order will be by income withholding unless an exception to payment by income withholding is granted under ORS 25.396.

(6)(a) Except as provided in paragraph (d) of this subsection, a decree or order establishing paternity or including a provision concerning support shall contain the residence, mailing or contact address, Social Security number, telephone number and driver license number of each party and the name, address and telephone number of all employers of each party.

(b) The decree or order shall also include notice that the obligor and obligee:

(A) Must inform the court and the [Department of Justice] administrator in writing of any change in the information required by this subsection within 10 days after such change; and

(B) May request that the [Department of Human Services] administrator review the amount of support ordered after two years or at any time upon a substantial change of circumstances.

(c) The [Department of Justice] administrator may require of the parties any additional information that is necessary for the provision of support enforcement services under ORS 25.080.

(d)(A) Upon a finding, that may be made ex parte, that the health, safety or liberty of a party or child would unreasonably be put at risk by the disclosure of information specified in this subsection or by the disclosure of other information concerning a child or party to a paternity or support proceeding or if an existing order so requires, a court or administrator or [hearings] hearing officer, when the proceeding is administrative, shall order that the information not be contained in any document provided to another party or otherwise disclosed to a party other than the state.

(B) The Department of Human Services shall adopt rules providing for similar confidentiality for information described in subparagraph (A) of this paragraph that is maintained by an entity providing support enforcement services under ORS 25.080.

(7)(a) Except as otherwise provided in paragraph (b) of this subsection, in any subsequent child support enforcement action, the court or administrator, upon a showing of diligent effort made to locate the obligor or obligee, may deem due process requirements to be met by mailing notice to the last-known residential, mailing or employer address or contact address as provided in ORS 25.085.

(b) Service of an order directing an obligor to appear in a contempt proceeding is subject to ORS 33.015 to 33.155.

(8) Subject to ORS 25.030, this section, to the extent it imposes any duty or function upon the Department of Justice, shall be deemed to supersede any provisions of ORS chapters 107, 108, 109, 416, 419A, 419B and 419C and ORS 110.303 to 110.452 that would otherwise impose the same duties or functions upon the county clerk or the Department of Human Services.

(9) Except as provided for in subsections (10), (11) and (12) of this section, credit shall not be given for payments not made to the Department of Justice as required pursuant to subsection (1) of this section.

(10) The Department of Justice shall give credit for payments not made to the Department of Justice when:

(a) Payments are not assigned to this or another state and the obligee and obligor agree in writing that specific payments were made and should be credited;

(b) Payments are assigned to the State of Oregon, the obligor and obligee make sworn written statements that specific payments were made, canceled checks or other substantial evidence is presented to corroborate their statements and the obligee has been given prior written notice of any potential criminal or civil liability that may attach to an admission of the receipt of assigned support;

(c) Payments are assigned to another state and that state verifies that payments not paid to the Department of Justice were received by the other state; or

(d) As provided by rule adopted pursuant to ORS 409.021 or under ORS 180.340.

(11) An obligor may apply to the Department of Justice for credit for payments made other than to the Department of Justice. If the obligee or other state does not provide the agreement, sworn statement or verification required by subsection (10) of this section, credit may be given pursuant to order of a [hearings officer of the Department of Human Services] hearing officer assigned from the Hearing Officer Panel established under section 3, chapter 849, Oregon Laws 1999, after notice and opportunity to object and be heard are given to both obligor and obligee. Notice shall be served upon the obligee as provided by ORS 25.085. Notice to the obligor may be by regular mail at the address provided in the application for credit. A hearing conducted under this subsection is a contested case hearing and ORS 183.413 to 183.470 apply. Any party may seek a hearing de novo in the circuit court.

(12) Nothing in this section precludes the Department of Justice from giving credit for payments not made to the Department of Justice when there has been a judicially determined credit or satisfaction or when there has been a satisfaction of support executed by the person to whom support is owed.

(13) The Department of Human Services shall adopt rules that:

(a) Direct how support payments that are made through the Department of Justice are to be applied and distributed; and

(b) Are consistent with federal regulations.

SECTION 3. ORS 25.020, as amended by section 2 of this 2001 Act, is amended to read:

(a) During periods for which support is assigned pursuant to ORS 418.032, 418.042, 419B.406 or 419C.597;

(d) For any period during which support enforcement services are provided pursuant to the child support enforcement program created by Title IV-D of the Social Security Act or pursuant to ORS 25.080;

(e) When ordered by the court pursuant to ORS 419B.400;

(f) When a support order that is entered or modified on or after January 1, 1994, includes a provision requiring the obligor to pay support by income withholding; or

(g) When ordered by the court under any other applicable provision of law.

(a) Date of issuance of the support order.

(b) Amount of the support order.

(d) Dates and amounts of disbursements.

(e) Payee of any disbursements.

(f) Amount of any arrearage.

(g) Source of any collection.

(b) The decree or order shall also include notice that the obligor and obligee:

(A) Must inform the court and the administrator in writing of any change in the information required by this subsection within 10 days after such change; and

(B) May request that the administrator review the amount of support ordered after two years or at any time upon a substantial change of circumstances.

(c) The administrator may require of the parties any additional information that is necessary for the provision of support enforcement services under ORS 25.080.

(d)(A) Upon a finding, that may be made ex parte, that the health, safety or liberty of a party or child would unreasonably be put at risk by the disclosure of information specified in this subsection or by the disclosure of other information concerning a child or party to a paternity or support proceeding or if an existing order so requires, a court or administrator or hearing officer, when the proceeding is administrative, shall order that the information not be contained in any document provided to another party or otherwise disclosed to a party other than the state.

(b) Service of an order directing an obligor to appear in a contempt proceeding is subject to ORS 33.015 to 33.155.

(10) The Department of Justice shall give credit for payments not made to the Department of Justice when:

(a) Payments are not assigned to this or another state and the obligee and obligor agree in writing that specific payments were made and should be credited;

(c) Payments are assigned to another state and that state verifies that payments not paid to the Department of Justice were received by the other state; or

(d) As provided by rule adopted pursuant to ORS 409.021 or under ORS 180.340.

(11) An obligor may apply to the Department of Justice for credit for payments made other than to the Department of Justice. If the obligee or other state does not provide the agreement, sworn statement or verification required by subsection (10) of this section, credit may be given pursuant to order of a hearing officer [assigned from the Hearing Officer Panel established under section 3, chapter 849, Oregon Laws 1999,] of the Department of Human Services after notice and opportunity to object and be heard are given to both obligor and obligee. Notice shall be served upon the obligee as provided by ORS 25.085. Notice to the obligor may be by regular mail at the address provided in the application for credit. A hearing conducted under this subsection is a contested case hearing and ORS 183.413 to 183.470 apply. Any party may seek a hearing de novo in the circuit court.

(13) The Department of Human Services shall adopt rules that:

(a) Direct how support payments that are made through the Department of Justice are to be applied and distributed; and

(b) Are consistent with federal regulations.

SECTION 4. The amendments to ORS 25.020 by section 3 of this 2001 Act become operative on January 1, 2004.

SECTION 5. ORS 25.240 is amended to read:

25.240. [(1)] Notwithstanding any other law, where a court or the administrator has the authority under ORS chapter 107, 108, 109 or 416[,] or ORS 110.303 to 110.452, 419B.400 to 419B.406 or 419C.590, 419C.592 and 419C.597 to require a parent without legal custody to pay support for a minor child, then the court or administrator may require a parent with legal custody to pay support for such a child as long as that parent does not have physical custody of such child or is not providing the child with the necessities of life, including but not limited to lodging, food and clothing.

[(2) For purposes of this section, “administrator” means an administrator as defined in ORS 416.400.]

SECTION 6. ORS 25.245 is amended to read:

25.245. (1) Notwithstanding any other provision of Oregon law, a parent who is eligible for and receiving cash payments [made by the Department of Human Services] under Title IV-A of the Social Security Act, [or under] the general assistance program as provided in ORS chapter 411 or a general assistance program of another state or tribe, [or] the Oregon Supplemental [Security] Income [Programs or cash payments made by the Social Security Administration under] Program or the federal Supplemental Security Income Program shall be rebuttably presumed unable to pay child support and a child support obligation does not accrue unless the presumption is rebutted.

(2) Each month, the Department of Human Services shall identify those persons receiving cash payments under the programs listed in subsection (1) of this section that are administered by the State of Oregon and provide that information to the [district attorney and the Division of Child Support of the Department of Justice.] administrator. If benefits are received from programs listed in subsection (1) of this section that are administered by other states, tribes or federal agencies, the obligor shall provide the administrator with written documentation of the benefits. The Department of Human Services shall adopt rules to implement this subsection.

(3) [The district attorney and the Division of Child Support] The administrator shall refer to the information provided in subsection (2) of this section prior to establishing any child support obligation. Within 30 days following identification of persons under [this] subsection (2) of this section, the entity responsible for support enforcement services under ORS 25.080 shall provide notice of the presumption to the obligee and obligor and shall inform all parties to the support order that, unless a party objects as provided in subsection [(3)] (4) of this section, child support shall cease accruing beginning with the support payment due on or after the date the obligor first begins receiving the cash payments and continuing through the support payment due in the last month in which the obligor received the cash payments. The entity responsible for support enforcement services shall serve the notice on the obligee in the manner provided for the service of summons in a civil action or by certified mail, return receipt requested, and shall serve the notice on the obligor by first class mail to the obligor’s last-known address. The notice shall specify the month in which cash payments are first made and shall contain a statement that the [district attorney and the Division of Child Support represent] administrator represents the state and that low cost legal counsel may be available.

[(3)] (4) A party may object to the presumption by sending an objection to the entity responsible for support enforcement services under ORS 25.080 within 20 days after the date of service of the notice. The objection must describe the resources of the obligor or other evidence that might rebut the presumption of inability to pay child support. The entity receiving the objection shall cause the case to be set for a hearing before a court or a [hearings] hearing officer. The court or [hearings] hearing officer may consider only whether the presumption has been rebutted.

[(4)] (5) If no objection is made, or if the court or [hearings] hearing officer finds that the presumption has not been rebutted, the Department of Justice shall discontinue billing the obligor for the period of time described in subsection [(2)] (3) of this section and no arrearage shall accrue for the period during which the obligor is not billed. In addition, the entity providing support enforcement services shall file with the circuit court in which the support order or decree has been entered or docketed a copy of the notice described in subsection [(2)] (3) of this section or, if an objection is made and the presumption is not rebutted, a copy of the [hearings] hearing officer’s order.

[(5)(a)] (6)(a) Within 30 days after the date the obligor ceases receiving cash payments under a program listed in subsection (1) of this section, the Department of Justice shall provide notice to all parties to the support order:

(A) Specifying the last month in which a cash payment was made;

(B) Stating that the payment of those benefits has terminated and that by operation of law billing and accrual of support resumes; and

(C) Informing the parties of their rights to request a review and modification of the support order based on a substantial change in circumstance or pursuant to ORS 25.287 or any other provision of law.

(b) The notice shall include a statement that the [district attorney and the Division of Child Support represent] administrator represents the state and that low cost legal counsel may be available.

(c) The entity providing enforcement services shall file a copy of the notice required by paragraph (a) of this subsection with the circuit court in which the support order or decree has been entered or docketed.

[(6)] (7) Receipt by a child support obligor of cash payments under any of the programs listed in subsection (1) of this section shall be sufficient cause for a court or [hearings] hearing officer to allow a credit and satisfaction against child support arrearage for months that the obligor received the cash payments.

[(7)] (8) The notice and finding of financial responsibility required by ORS 416.415 shall include notice of the presumption, nonaccrual and arrearage credit rights provided for in this section.

[(8)] (9) The presumption, nonaccrual and arrearage credit rights created by this section shall apply whether or not child support enforcement services are being provided under Title IV-D of the Social Security Act.

[(9)] (10) Application of the presumption, nonaccrual and arrearage credit rights created by this section does not constitute a modification but does not limit the right of any party to seek a modification of a support order based upon a change of circumstances or pursuant to ORS 25.287 or any other provision of law. In determining whether a change in circumstances has occurred or whether two years have elapsed since entry of a support order, the court or [hearings] hearing officer may not consider any action taken under this section as entry of a support order. The presumption stated in subsection (1) of this section applies in any modification proceeding.

SECTION 7. ORS 25.287 is amended to read:

25.287. (1)(a) The entity providing support enforcement services under ORS 25.080 may initiate proceedings to modify a support obligation to ensure that the support obligation is in accordance with the formula established [by this chapter] under ORS 25.270 to 25.287.

(b) Proceedings under this subsection may occur only after two years have elapsed from the later of the following:

(A) The date the original support obligation took effect;

(B) The date any previous modification of the support obligation took effect; or

(C) The date of any previous review and determination under this subsection that resulted in no modification of the support obligation.

(c) For purposes of paragraph (b) of this subsection, a support obligation or modification takes effect on the first date on which the obligor is to pay the established or modified support amount.

(d) The only issues at proceedings under this subsection are whether two years have elapsed, as described in paragraph (b) of this subsection, and whether the support obligation is in substantial compliance with the formula established [by this chapter] under ORS 25.270 to 25.287.

(e) Upon review, if the administrator determines that a support obligation does not qualify for modification under this section, a party may appeal the determination. A hearing on the appeal shall be conducted by a hearing officer assigned from the Hearing Officer Panel established under section 3, chapter 849, Oregon Laws 1999. Appeal of the order of the hearing officer may be taken to the circuit court of the county in which the support obligation has been entered, docketed or registered for a hearing de novo. The appeal to the court shall be by petition for review filed within 60 days after the order of the hearing officer has been docketed.

[(e)] (f) If the court, the administrator or the [hearings] hearing officer finds that more than two years have elapsed, as described in paragraph (b) of this subsection, the court, the administrator or the [hearings] hearing officer shall modify the support order to bring the support obligation into substantial compliance with the formula established [by this chapter] under ORS 25.270 to 25.287, regardless of whether there has been a substantial change in circumstances since the support obligation was last established, modified or reviewed. Proceedings by the administrator or hearing officer under this subsection shall be conducted according to the provisions of ORS 416.425 and 416.427.

[(f)] (g) The provisions of this subsection apply to any support obligation established by a support order under ORS chapter 24, 107, 108, 109 or 416 or ORS 110.303 to 110.452, 419B.400 or 419C.590.

(2) The administrator, court or [hearings] hearing officer may use the provisions of subsection (1) of this section when a support order was entered in another state and registered in Oregon, the provisions of ORS 110.303 to 110.452 apply and more than two years have elapsed as provided in subsection (1)(b) of this section.

(3) Notwithstanding the provisions of this section, proceedings may be initiated at any time to modify a support obligation based upon a substantial change of circumstances under any other provision of law.

(4) The obligee is a party to any action to modify a support obligation under this section.

SECTION 8. ORS 25.287, as amended by section 7 of this 2001 Act, is amended to read:

(b) Proceedings under this subsection may occur only after two years have elapsed from the later of the following:

(A) The date the original support obligation took effect;

(B) The date any previous modification of the support obligation took effect; or

(C) The date of any previous review and determination under this subsection that resulted in no modification of the support obligation.

(c) For purposes of paragraph (b) of this subsection, a support obligation or modification takes effect on the first date on which the obligor is to pay the established or modified support amount.

(e) Upon review, if the administrator determines that a support obligation does not qualify for modification under this section, a party may appeal the determination. A hearing on the appeal shall be conducted by a hearing officer [assigned from the Hearing Officer Panel established under section 3, chapter 849, Oregon Laws 1999] appointed by the Employment Department. Appeal of the order of the hearing officer may be taken to the circuit court of the county in which the support obligation has been entered, docketed or registered for a hearing de novo. The appeal to the court shall be by petition for review filed within 60 days after the order of the hearing officer has been docketed.

(f) If the court, the administrator or the hearing officer finds that more than two years have elapsed, as described in paragraph (b) of this subsection, the court, the administrator or the hearing officer shall modify the support order to bring the support obligation into substantial compliance with the formula established under ORS 25.270 to 25.287, regardless of whether there has been a substantial change in circumstances since the support obligation was last established, modified or reviewed. Proceedings by the administrator or hearing officer under this subsection shall be conducted according to the provisions of ORS 416.425 and 416.427.

(g) The provisions of this subsection apply to any support obligation established by a support order under ORS chapter 24, 107, 108, 109 or 416 or ORS 110.303 to 110.452, 419B.400 or 419C.590.

(2) The administrator, court or hearing officer may use the provisions of subsection (1) of this section when a support order was entered in another state and registered in Oregon, the provisions of ORS 110.303 to 110.452 apply and more than two years have elapsed as provided in subsection (1)(b) of this section.

(4) The obligee is a party to any action to modify a support obligation under this section.

SECTION 9. The amendments to ORS 25.287 by section 8 of this 2001 Act become operative on January 1, 2004.

SECTION 10. ORS 25.414 is amended to read:

25.414. (1) The withholder shall withhold from the obligor’s disposable monthly income, other than workers’ compensation under ORS chapter 656 or unemployment compensation under ORS chapter 657, the amount stated in the order to withhold. The entity issuing the order to withhold shall compute this amount subject to the following:

(a) If withholding is for current support only, the amount to be withheld is the amount specified as current support in the support order.

(b) If withholding is for current support and there is an arrearage, the amount to be withheld is 120 percent of the amount specified as current support in the support order.

(A) The amount of the last ordered monthly support.

(B) If there is no last ordered monthly support amount, the monthly support amount used to calculate the arrearage amount specified in the order or judgment for arrearage.

(C) If there is no last ordered monthly support amount and if there was no monthly support amount, an amount calculated under the formula established under ORS 25.275. For purposes of this subparagraph, this calculation shall be based on the obligor’s current monthly gross income or, if the obligor’s current monthly gross income is not known, the Oregon hourly minimum wage converted to a monthly amount based upon a 40-hour workweek, zero income for the obligee, and one joint child, regardless of how many children the parties may actually have. No rebuttals to this calculation may be allowed.

(d) Notwithstanding the amount determined to be withheld under paragraph (c) of this subsection, the obligor must retain disposable monthly income of at least 160 times the applicable federal minimum hourly wage prescribed by section 6 (a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 206) or any future minimum hourly wages prescribed in that section.

(2) The amount to be withheld from unemployment compensation under ORS chapter 657 is calculated as follows:

(a) If withholding is for a current support order, regardless of the existence of arrearage, the amount to be withheld is the lesser of:

(A) Twenty-five percent of the benefits paid; or

(B) The current monthly support obligation.

(b) If withholding is for arrearage only, the amount to be withheld is the lesser of:

(A) Fifteen percent of the benefits paid; or

(B) The amount of the last ordered monthly support.

(3) The amount to be withheld from workers’ compensation under ORS chapter 656 is set forth in ORS 656.234.

(4) Notwithstanding any other provision of this section, when withholding is from a lump sum payment or benefit, including but not limited to retroactive workers’ compensation benefits, lump sum retirement plan disbursements or withdrawals, insurance payments or settlements, severance pay, bonus payments or any other similar payments or benefits that are not periodic recurring income, the amount subject to withholding for payment of a support obligation may not exceed one-fourth of the amount of the lump sum payment or benefit.

(5) Notwithstanding any other provision of this section, when withholding is only for arrearage assigned to this or another state, the Department of Justice may set a lesser amount to be withheld if the obligor demonstrates the withholding is prejudicial to the obligor’s ability to provide for a child the obligor has a duty to support. The Department of Human Services shall adopt rules to implement this subsection.

(6) Except as provided in subsection (2) of this section, the withholder may deduct from the obligor’s disposable income a monthly processing fee not to exceed $5. The processing fee is in addition to the amount calculated to be withheld for support, unless the amount to be withheld for support is the maximum allowed under subsection (8) of this section, in which case the fee is deducted from the amount withheld as support.

(7) If there are multiple withholding orders against the same obligor, the amount to be withheld is the sum of each support order calculated independently.

(8) No withholding as calculated under this section, including the processing fee permitted in subsection (6) of this section, shall exceed 50 percent of the obligor’s net disposable income. The limit established in this subsection applies whenever withholding is implemented under this section, whether by a single order or by multiple orders against the same obligor.

(9) When the obligor’s income is not sufficient for the withholder to fully comply with each withholding order, the withholder shall withhold the maximum amount allowed under this section. If all withholding orders for a particular obligor are payable to or through the Department of Justice, the withholder shall pay to the Department of Justice the income withheld and the Department of Justice shall determine priorities for allocating income withheld to multiple child support cases relative to that obligor. If one or more of the withholding orders for a particular obligor require payment other than to or through the Department of Justice, the withholder shall use the following to determine priorities for withholding and allocating income withheld to multiple child support cases:

(a) If the amount withheld from the obligor’s income is sufficient to pay the current support due to each case but is not enough to fully comply with the withholding order for each case where past due support is owed, the withholder shall:

(A) Pay to each case the amount of support due for the current month; and

(B) Pay the remainder of the amount withheld in equal amounts to each case where arrearages are owed. However, no case shall receive more than the total amount of current support and past due support owed to that case at the time the payment is made.

(b) If the amount withheld is not sufficient to pay the current support due to each case, each case shall be paid a proportionate share of the amount withheld. The withholder shall determine this for each case by dividing the monthly amount ordered as current support for that case by the combined monthly amount ordered as current support for all cases relative to the same obligor, and multiplying this percentage by the total amount withheld.

(10) An order to withhold income is not subject to the limitations of ORS 23.185.

(11) A withholder shall withhold funds as directed in the order to withhold, except that when a withholder receives an income-withholding order issued by another state, the withholder shall apply the income-withholding law of the state of the obligor’s principal place of employment in determining:

(a) The withholder’s fee for processing an income-withholding order;

(b) The maximum amount permitted to be withheld from the obligor’s income;

(c) The time periods within which the withholder must implement the income-withholding order and forward the child support payment;

(d) The priorities for withholding and allocating income withheld for multiple child support obligees; and

(e) Any withholding terms or conditions not specified in the order.

SECTION 11. ORS 25.417 is amended to read:

25.417. [If the obligor’s support obligation is required to be paid monthly and pay periods are at more frequent intervals,] When an obligor is required to pay support by income withholding and is paid more often than monthly, the withholder shall[, at the withholder’s option:]

[(1)] withhold up to the full amount specified in the order to withhold, based on the obligor’s pay period as specified in the order to withhold. The amount withheld may not [to] exceed the maximum amount allowed under ORS 25.414 (8).[, from each pay period until the complete monthly obligation has been met; or]

[(2) Divide the full amount specified in the order to withhold, plus the withholder’s processing fee, if any, by the number of pay periods anticipated for the month, and then withhold the resultant dollar amount each pay period.]

SECTION 12. ORS 25.610 is amended to read:

25.610. (1) Whenever support enforcement services are being provided and those services are funded in part through Title IV-D of the Social Security Act (42 U.S.C. 651, et seq.), the district attorney or the Division of Child Support of the Department of Justice, whichever is appropriate, may request the Department of Revenue, through the Department of Human Services or its designee, to collect past due child and spousal support from income tax refunds due to the obligor. Such request shall be based upon the payment record maintained pursuant to ORS 25.020.

(2) If support payment records have not been maintained as provided in ORS 25.020, then such a payment record may be established pursuant to ORS 25.164, [and] 25.167 and 416.429.

(3) The Department of Human Services [may] shall adopt rules:

(a) Setting out additional criteria for requests pursuant to subsection (1) of this section; and

(b) Directing how any support obligation collected by the Department of Revenue shall be distributed, consistent with federal regulations.

[(4) In cases where support rights are assigned to the State of Oregon or its departments or divisions at the time the refund is intercepted, any support collection made by the Department of Revenue shall be applied first to reimburse the state and federal government for assistance granted or paid to or on behalf of an obligee.]

[(5) In those cases under this section where an obligee is not a recipient of public assistance, care, support or services at the time a tax intercept is made, and is receiving support enforcement services, any support collection made by the Department of Revenue shall be distributed to the obligee in the same manner as regular arrearage collections are distributed to the obligee.]

[(6)] (4) The obligor and the obligee must be sent a written notice of the intent to apply the refund to the obligor’s support obligation. The notice shall inform the parties of:

(a) The proposed action;

(b) The right to request a hearing to contest the proposed action; and

[(7)] (5) Hearings must be requested within 30 days. At the hearing, no issue may be considered if it was previously litigated or if the obligor failed to exercise rights to appear and be heard or to appeal a decision which resulted in the accrual of the arrearage being used as a basis for a request under this section.

[(8)] (6) When the Department of Revenue has been requested to collect past due child and spousal support from income tax refunds due to the obligor, the Department of Revenue shall not allow the obligor to apply any income tax refund to future taxes of the obligor.

[(9)] (7) Notwithstanding any other provision of this section, an obligor who is not delinquent in payment of child or spousal support may authorize the Department of Revenue, through the Department of Human Services or its designee, to withhold any income tax refund owing to that obligor for the purpose of applying the moneys as a credit to the support account maintained by the Department of Justice.

SECTION 13. ORS 25.646 is amended to read:

25.646. (1) Upon request of the Department of [Human Services] Justice and the receipt of the certification required under subsection (2) of this section, a financial institution shall provide financial records of a customer.

(2) In requesting information under subsection (1) of this section, the department shall provide the name and Social Security number of the person whose financial records are sought and shall state with reasonable specificity the financial records requested. The department shall certify to the financial institution in writing, signed by an agent of the department:

(a) That the person whose financial records are sought is a party to a proceeding to establish, modify or enforce the child support obligation of the person; and

(b) That the department has authorization from the person for release of the financial records, has given the person written notice of its request for financial records or will give the notice within five days after the financial institution responds to the request.

(3) The department shall reimburse a financial institution supplying financial records under this section for actual costs incurred.

(4) A financial institution, including an institution-affiliated party as defined in section 3(u) of the Federal Deposit Insurance Act (12 U.S.C. 1813(u)), that supplies financial records to the department under this section is not liable to any person for any loss, damage or injury arising out of or in any way pertaining to the disclosure of the financial records.

(5) A financial institution that is requested to supply financial records under this section may enter into an agreement with the department concerning the method by which requests for financial records and responses from the financial institution shall be made.

(6) The department shall provide a reasonable time to the financial institution for responding to a request for financial records.

(7) The department shall seek financial records under this section only:

(a) With respect to a person who is a party to a proceeding to establish, modify or enforce the child support obligation of the person; or

(b) According to the provisions of ORS 25.083.

SECTION 14. ORS 25.750 is amended to read:

25.750. (1) All licenses, certificates, permits or registrations that a person is required by state law to possess in order to engage in an occupation or profession or to use a particular occupational or professional title, all annual licenses issued to individuals by the Oregon Liquor Control Commission, all driver licenses or permits issued by the Department of Transportation and [all] recreational hunting and fishing licenses, as defined by rule of the Department of Human Services, are subject to suspension by the respective issuing entities upon certification to the issuing entity by the Division of Child Support of the Department of Justice or the district attorney that a child support case record is being maintained by the Department of Justice, that the case is being enforced by the Division of Child Support or the district attorney under the provisions of ORS 25.080 and that one or both of the following conditions apply:

(a) That the party holding the license, certificate, permit or registration is under order or judgment to pay monthly child support and is in arrears, with respect to any such judgment or order requiring the payment of child support, in an amount equal to three months of support or $2,500, whichever occurs later, and:

(A) Has not entered into a payment agreement with the Division of Child Support or the district attorney with respect to those arrears and the continuing child support obligation; or

(B) Is not in compliance with a payment agreement entered into with the Division of Child Support or the district attorney; or

(b) That the party holding the license, certificate, permit or registration has failed, after receiving appropriate notice, to comply with a subpoena or other procedural order relating to a paternity or child support proceeding and:

(A) Has not entered into an agreement with the Division of Child Support or the district attorney with respect to compliance; or

(B) Is not in compliance with such an agreement.

(2) The Department of Human Services by rule shall specify the conditions and terms of payment agreement or other agreements, compliance with which precludes the suspension of the license, certificate, permit or registration.

SECTION 15. ORS 25.759 is amended to read:

25.759. Upon identification of a person subject to suspension under ORS 25.750 to 25.783, the [Department of Justice] administrator may issue a notice, sent by regular mail to both the address of record as shown in the records of the issuing entity and the address of record as shown on the [Department of Justice] administrator’s child support file. Such notice shall contain the following information:

(1) That certain licenses, certificates, permits and registrations, which shall be specified in the notice, are subject to suspension as provided for by ORS 25.750 to 25.783.

(2) The name, Social Security number, if available, date of birth, if known, and child support case number or numbers of the person subject to the action.

(3) The amount of arrears and the amount of the monthly child support obligation or, if suspension is based on ORS 25.750 (1)(b), a description of the subpoena or other procedural order with which the person subject to the action has failed to comply.

(4) The procedures available for contesting the suspension of a license, certificate, permit or registration.

(5) That the only bases for contesting the suspension are:

(a) That the arrears are not greater than three months of support or $2,500, or that there is a mistake in the identity of the obligor;

(b) That the person subject to the suspension has complied with the subpoena or other procedural order identified in subsection (3) of this section; or

(c) That the person subject to the suspension is in compliance with a previous agreement or compliance agreement as provided for by ORS 25.750 to 25.783.

(6) That the obligor may enter into a payment agreement or other agreement, prescribed by rule by the Department of Human Services, compliance with which shall preclude the suspension under ORS 25.750 to 25.783.

(7) That the obligor has 30 days from the date of the notice to contact the Division of Child Support or the district attorney in order to:

(a) Contest the action in writing on a form prescribed by the Division of Child Support;

(b) Comply with the subpoena or procedural order identified in subsection (3) of this section; or

(c) Enter into a payment agreement authorized by ORS 25.750 and 25.762. The notice shall state that any agreement must be in writing and must be entered into within 30 days of making contact with the Division of Child Support or the district attorney.

(8) That failure to contact the Division of Child Support or the district attorney within 30 days of the date of the notice shall result in notification to the issuing entity to suspend the license, certificate, permit or registration.

SECTION 16. ORS 29.125 is amended to read:

29.125. As used in ORS 29.125 to 29.375 and 29.401 to 29.415:

(1) “Administrator” [means either the Administrator of the Division of Child Support of the Department of Justice or the authorized representative of the administrator, or the district attorney or the authorized representative of the district attorney] has the meaning given that term in ORS 25.010.

(2) “Defendant” means a person whose property is being garnished by a plaintiff and includes a judgment debtor after entry of judgment.

(3) “Garnishee” means a person other than a plaintiff or a defendant who is in possession of property of a defendant and who has been garnished in accordance with the provisions of ORS 29.125 to 29.375 and 29.401 to 29.415.

(4) “Judgment” includes but is not limited to the support arrearage as shown on the support records of the Department of Justice pursuant to ORS 25.020 and 25.167, even though such records may not constitute a full record of the support arrearage owed.

(5) “Past due support” means the amount of child or spousal support, or both, determined under a court or administrative order in a proceeding under ORS chapter 107, 108, 109, 416, 419B or 419C or ORS 110.303 to 110.452 that has not been paid or is certified to be owed by another state under ORS 25.083.

(6) “Person” includes individuals, partnerships and corporations.

(7) “Plaintiff” means a person who is garnishing property of a defendant and includes a judgment creditor after entry of judgment.

(8) “Sheriff” includes constables and their deputies.

(9) “Stock” includes rights or shares in an association or corporation with interest and profits thereon.

(10) “Writ of garnishment” includes writs issued under ORS 29.125 to 29.375 and 29.401 to 29.415.

SECTION 16a. If House Bill 2386 becomes law, section 16 of this 2001 Act (amending ORS 29.125) is repealed.

SECTION 17. ORS 109.070 is amended to read:

109.070. (1) The paternity of a person may be established as follows:

(a) The child of a wife cohabiting with her husband who was not impotent or sterile at the time of the conception of the child shall be conclusively presumed to be the child of her husband, whether or not the marriage of the husband and wife may be void.

(b) A child born in wedlock, there being no decree of separation from bed or board, shall be presumed to be the child of the mother’s husband, whether or not the marriage of the husband and wife may be void. This shall be a disputable presumption.

(d) By filiation proceedings.

(e) By filing with the State Registrar of the Center for Health Statistics the voluntary acknowledgment of paternity form as provided for by ORS 432.287. Except as otherwise provided in subsection (2) of this section, this filing establishes paternity for all purposes.

(f) By having established paternity through a voluntary acknowledgment of paternity process in another state.

(g) By paternity being established or declared by other provision of law.

(2)(a) A party to a voluntary acknowledgment of paternity may rescind the acknowledgment within the earlier of:

(A) Sixty days after filing the voluntary acknowledgment of paternity; or

(B) The date of a proceeding relating to the child, including a proceeding to establish a support order, in which the party wishing to rescind the acknowledgment is also a party to the proceeding. For the purposes of this subparagraph, the date of a proceeding is the date on which an order is entered in the proceeding.

(b)(A) A signed voluntary acknowledgment of paternity filed in this state may be challenged:

(i) At any time after the 60-day period on the basis of fraud, duress or material mistake of fact. The party bringing the challenge has the burden of proof.

(ii) Within one year after the voluntary acknowledgment has been filed, unless the provisions of paragraph (c) of this subsection apply. No challenge to the voluntary acknowledgment may be allowed more than one year after the voluntary acknowledgment has been filed, unless the provisions of sub-subparagraph (i) of this subparagraph apply.

(B) Legal responsibilities arising from the voluntary acknowledgment of paternity, including child support obligations, may not be suspended during the challenge, except for good cause.

(c) No later than one year after a voluntary acknowledgment of paternity form is filed in this state and if genetic parentage tests have not been previously completed, a party to the acknowledgment or the state, if child support enforcement services are being provided under ORS 25.080, may apply to the court or to the administrator, as defined in [ORS 416.400] ORS 25.010, for an order requiring that the parties and the child submit to genetic parentage tests.

(d) If the results of the tests exclude the male party as a possible father of the child, a party or the state, if child support enforcement services are being provided under ORS 25.080, may apply to the court for an order of nonpaternity. Upon receipt of an order of nonpaternity, the Assistant Director for Health shall correct any records maintained by the State Registrar of the Center for Health Statistics that indicate that the male party is the parent of the child.

(e) The state child support program shall pay any costs for genetic parentage tests subject to recovery from the party who requested the tests.

SECTION 18. ORS 109.252 is amended to read:

109.252. (1) Unless the court or administrator finds good cause not to proceed in a proceeding under ORS 109.125 to 109.230 and 416.400 to 416.470, in which paternity is a relevant fact, the court or administrator, as defined in [ORS 416.400] ORS 25.010, upon his or her own initiative or upon suggestion made by or on behalf of any person whose blood is involved may, or upon motion of any party to the action made at a time so as not to delay the proceedings unduly, shall order the mother, child, alleged father and any other named respondent who may be the father to submit to blood tests. If any person refuses to submit to such tests, the court or administrator may resolve the question of paternity against such person or enforce its order if the rights of others and the interests of justice so require.

(2) When child support enforcement services are being provided under ORS 25.080, the child support program shall pay any costs for blood tests subject to recovery from the party who requested the tests. If the original test result is contested prior to the entry of an order establishing paternity, the court or administrator shall order additional testing upon request and advance payment by the party making the request.

SECTION 19. ORS 109.254 is amended to read:

109.254. (1) The tests shall be made by experts qualified as examiners of genetic markers who shall be appointed by the court or administrator, as defined in [ORS 416.400] ORS 25.010. Any party or person at whose suggestion the tests have been ordered may demand that other experts, qualified as examiners of genetic markers, perform independent tests under order of the court or administrator, the results of which may be offered in evidence. The number and qualifications of such experts shall be determined by the court or administrator.

(2) The blood test results and the conclusions and explanations of the blood test experts are admissible as evidence of paternity without the need for foundation testimony or other proof of authenticity or accuracy, unless a written challenge to the testing procedure or the results of the blood test has been filed with the court and delivered to opposing counsel at least 10 days before any hearing set to determine the issue of paternity. Failure to make such timely challenge constitutes a waiver of the right to have the experts appear in person and is not grounds for a continuance of the hearing to determine paternity. A copy of the results, conclusions and explanations must be furnished to both parties or their counsel at least 20 days before the date of the hearing for this subsection to apply. The court for good cause or the parties may waive the time limits established by this subsection.

(3) An affidavit documenting the chain of custody of the specimens is prima facie evidence to establish the chain of custody.

SECTION 20. ORS 110.304 is amended to read:

110.304. The tribunals of this state are the circuit court, the administrator, as defined in [ORS 416.400] ORS 25.010, the Department of Justice or a hearings officer of the Employment Department, as appropriate.

SECTION 21. ORS 416.400 is amended to read:

416.400. As used in ORS 416.400 to 416.470, unless the context requires otherwise:

(1) “Administrator” [means either the Administrator of the Division of Child Support of the Department of Justice, or the district attorney or the administrator’s or the district attorney’s authorized representative] has the meaning given that term in ORS 25.010.

(2) “Court” shall mean any circuit court of this state and any court in another state having jurisdiction to determine the liability of persons for the support of another person.

(3) “Court order” means any judgment, decree or order of any Oregon court that orders payment of a set or determinable amount of support money by the subject parent and does not include an order or decree in any proceeding in which the court did not order support.

(4) “Department” means the Department of Human Services of this state or its equivalent in any other state from which a written request for establishment or enforcement of a support obligation is received under ORS 416.415. When support is sought for a youth offender in the physical or legal custody of the Oregon Youth Authority, “department” includes the Oregon Youth Authority.

(5) “Dependent child” means any person under the age of 18 who is not otherwise emancipated, self-supporting, married or a member of the Armed Forces of the United States. “Dependent child” also means a child attending school as defined in ORS 107.108.

(6) “Office” means the office of the Division of Child Support or the office of the district attorney.

(7) “Parent” means the natural or adoptive father or mother of a dependent child or youth offender. “Parent” also means stepparent when such person has an obligation to support a dependent child pursuant to ORS 109.053.

(8) “Past support” means the amount of child support that could have been ordered and accumulated as arrears against a parent for the benefit of a child for any period of time during which the child was not supported by the parent and for which period no support order was in effect.

(9) “Public assistance” means any money payments made by the department which are paid to or for the benefit of any dependent child or youth offender, including but not limited to payments made so that food, shelter, medical care, clothing, transportation or other necessary goods, services or items may be provided, and payments made in compensation for the provision of such necessities.

(10) “Youth offender” has the meaning given that term in ORS 419A.004.

SECTION 22. ORS 416.480 is amended to read:

416.480. As used in ORS 416.480 to 416.486:

(1) “Administrator” has the meaning given that term in [ORS 416.400] ORS 25.010.

(2) “Court” means the juvenile court or the circuit court.

(3) “Director” means the Director of the Oregon Youth Authority.

(4) “Youth authority” means the Oregon Youth Authority.

(5) “Youth offender” has the meaning given that term in ORS 419A.004.

SECTION 23. ORS 419C.597 is amended to read:

419C.597. When a youth offender or other offender is in the legal or physical custody of the Oregon Youth Authority and [such youth] the offender is the beneficiary of an existing order of support in a decree of dissolution or other order and the youth authority is required to provide financial assistance for the care and support of [such youth] the offender, the youth authority shall be assignee of and subrogated to [such youth’s] the offender’s proportionate share of any such support obligation including sums that have accrued whether or not the support order or decree provides for separate monthly amounts for the support of each of two or more children or a single monthly gross payment for the benefit of two or more children, up to the amount of assistance provided by the youth authority. The assignment shall be as provided in ORS 418.042.

SECTION 24. ORS 432.206 is amended to read:

432.206. (1) A certificate of birth for each birth that occurs in this state shall be filed with the county registrar of the county in which the birth occurred or with the Center for Health Statistics, or as otherwise directed by the State Registrar of the Center for Health Statistics, within five days after the birth and shall be registered if the certificate has been completed and filed in accordance with this section. Any birth certificate not containing the name of the father or on which the surname of the father is at variance with that of the child, at the request of either parent, may be filed with the state registrar and not with the registrar of the county in which the birth occurred.

(2) When a birth occurs in an institution or en route thereto, the person in charge of the institution or authorized designee shall obtain the personal data, prepare the certificate, certify either by signature or by an approved electronic process that the child was born alive at the place and time and on the date stated and file the certificate as directed in subsection (1) of this section. The physician or other person in attendance shall provide the medical information required by the certificate within 72 hours after the birth.

(3) When a birth occurs outside of an institution:

(a) The certificate shall be prepared and filed within five days after the birth by one of the following in the indicated order of priority, in accordance with rules adopted by the state registrar:

(A) The physician in attendance at the birth or immediately after the birth, or in the absence of such a person;

(B) The midwife in attendance at the birth or immediately after the birth, or in the absence of such a person;

(D) The father, the mother or, in the absence of the father and the inability of the mother, the person with authority over the premises where the birth occurred.

(b) The state registrar shall by rule determine what evidence shall be required to establish the facts of birth.

(4) When a birth occurs on a moving conveyance:

(a) Within the United States and the child is first removed from the conveyance in this state, the birth shall be registered in this state and the place where it is first removed shall be considered the place of birth.

(b) While in international waters or air space or in a foreign country or its air space and the child is first removed from the conveyance in this state, the birth shall be registered in this state but the certificate shall show the actual place of birth insofar as can be determined.

(5) If the mother is not married at the time of birth, the name of the father shall not be entered on the certificate unless:

(a) The mother was married to and cohabiting with her husband at the time of conception, in which case the husband’s name shall be entered on the certificate, provided that the husband was not impotent or sterile; or

(b) Both the father and mother have signed a voluntary acknowledgment of paternity form that has been executed in accordance with ORS 432.287 and filed with the registrar.

(6) In the case of a child born to a married woman as a result of artificial insemination with the consent of her husband, the husband’s name shall be entered on the certificate.

(7) If the mother was not married at the time of either conception or birth or between conception and birth, the name of the father shall not be entered on the certificate unless a voluntary acknowledgment of paternity form or other form prescribed under ORS 432.287 signed by the mother and the person to be named as the father is filed with the state registrar.

(8) In any case in which paternity of a child is determined by a court of competent jurisdiction, or by an administrative determination of paternity, the Center for Health Statistics shall enter the name of the father on the new certificate of birth. The Center for Health Statistics shall change the surname of the child if so ordered by the court or, in a proceeding under ORS 416.430, by the administrator as defined in [ORS 416.400] ORS 25.010.

(9) If the father is not named on the certificate of birth, no other information about the father shall be entered on the legal portion of the certificate. Information pertaining to the father may be entered in the “Medical and Confidential” section of the certificate of birth.

(10) Certificates of birth filed after five days, but within one year after the date of birth, shall be registered on the standard form of birth certificate in the manner prescribed in this section. The certificates shall not be marked “Delayed.” The state registrar may require additional evidence in support of the facts of birth.

SECTION 25. ORS 461.715 is amended to read:

461.715. (1) The Oregon State Lottery Commission, by rule, shall develop procedures whereby [a lottery prize in excess of $600 that is won by a person who is in arrears in a court ordered child support obligation shall not be paid out to the person but shall be held for a minimum of 30 days in order to allow support enforcement entities to institute garnishment proceedings. The rules shall provide that]:

(a) [Upon presentation of a ticket or share for payment of a prize in excess of $600,] Before paying any portion of a lottery prize in excess of $600, the lottery commission shall check the name and social security number of the [ticket or share holder shall be checked] person entitled to payment against a computer database containing the names and social security numbers of obligors who are delinquent in paying child support obligations.

(b) When the [ticket or share holder] person is listed in the database, the lottery commission shall:

(A) Place a 30-day hold on [the prize] any payment to the person;

(B) Inform the [ticket or share holder] person of the hold; and

(C) Notify the [Adult and Family Services Division of the Department of Human Services] Division of Child Support of the Department of Justice that a delinquent obligor has won a lottery prize or is entitled to payment on a lottery prize.

(c) If a garnishment proceeding is initiated within the 30-day hold period, the lottery commission shall continue to hold [the prize] any payment to the person pending disposition of the proceeding.

(d) If a garnishment proceeding is not initiated within the 30-day hold period, the [prize shall be paid to the ticket or share holder] lottery commission shall make payment on the prize to the person at the end of the 30-day hold period or when the Division of Child Support of the Department of Justice notifies the lottery commission that a garnishment proceeding will not be initiated, whichever is sooner.

(2) The lottery commission shall establish [a computer link with the Adult and Family Services Division computer database that contains the names of] and operate a data match system using automated data exchanges with the Division of Child Support of the Department of Justice that identifies delinquent child support obligors. [The only] Any information necessary to identify delinquent obligors and hold a payment on a prize shall be available to the lottery commission through the [computer link shall be whether the name and social security number of a lottery prize winner are on the delinquent child support obligor database] data match system.

(3) The Division of Child Support of the Department of Justice [and], the Adult and Family Services Division of the Department of Human Services [shall assist] and the Oregon State Lottery Commission [in developing] shall enter into agreements regarding the procedures required by subsections (1) and (2) of this section.

SECTION 26. ORS 656.234 is amended to read:

656.234. (1) No moneys payable under this chapter on account of injuries or death are subject to assignment prior to their receipt by the beneficiary entitled thereto, nor shall they pass by operation of law. All such moneys and the right to receive them are exempt from seizure on execution, attachment or garnishment, or by the process of any court.

(2) Notwithstanding any other provision of this section:

(a) Moneys payable pursuant to ORS 656.210 and 656.212 are subject to an order to enforce child support obligations, and spousal support when there is a current support obligation for a joint child of the obligated parent and the person to whom spousal support is owed, pursuant to ORS 25.378; and

(b) Moneys payable pursuant to ORS 656.206, 656.214, 656.236 and 656.289 (4) are subject to an order to enforce child support obligations pursuant to ORS 25.378.

(3) Notwithstanding the provisions of ORS 25.378 and 25.414, the amount of child support obligation subject to enforcement shall not exceed:

(a) One-fourth of moneys paid under ORS 656.210 and 656.212 or the amount of the current support to be paid as continuing support, whichever is less, or, if there is no current support obligation and the withholding is for arrearages only, 15 percent of the moneys paid under ORS 656.210 and 656.212 or the amount previously paid as current support, whichever is less;

(b) One-fourth of moneys paid in a lump sum award under ORS 656.210 and 656.212 when the award becomes final by operation of law or waiver of the right to appeal its adequacy;

[(b)] (c) One-fourth of moneys paid under ORS 656.206, 656.214 and 656.236; or

[(c)] (d) One-fourth of the net proceeds paid to the worker in a disputed claim settlement under ORS 656.289 (4).

(4) Notwithstanding any other provision of this section, when withholding is only for arrearages assigned to this or another state, the Department of Human Services may set a lesser amount to be withheld if the obligor demonstrates the withholding is prejudicial to the obligor’s ability to provide for a child the obligor has a duty to support.

SECTION 27. ORS 25.620 is amended to read:

25.620. (1) The Department of Revenue shall establish procedures consistent with ORS 25.610 to collect past due child and spousal support from income tax refunds due to the obligor in the same manner that other delinquent accounts are collected under ORS 293.250.

(2) The Department of Revenue shall establish procedures to ensure that when an obligor has filed a joint income tax return, the obligor’s spouse may apply for a share of the refund, if any. The procedures shall provide for notice to the obligee regarding any application by the obligor’s spouse for a share of the refund.

(3) No collection shall be made by the Department of Revenue unless the debt is in a liquidated amount.

(4) Notwithstanding the provisions of ORS 293.250, the Department of Revenue shall designate a single fee to retain from moneys collected for child support as a reasonable fee to cover only the actual cost.

(5) The Department of Revenue shall forward the net proceeds of collections made under subsection (1) of this section to the Department of Justice. Such proceeds shall be applied pursuant to [ORS 25.610 (4) and other applicable federal and state laws] ORS 25.610 (3).

(6) Notwithstanding any other law relating to the confidentiality of tax records, the Department of Revenue shall send the Department of Justice the obligor’s home address and Social Security number or numbers on each case submitted for collection pursuant to ORS 25.610.

SECTION 28. This 2001 Act takes effect on the 91st day after the date on which the regular session of the Seventy-first Legislative Assembly adjourns sine die.

Approved by the Governor June 19, 2001

Filed in the office of Secretary of State June 19, 2001

Effective date October 6, 2001

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