HP0864, LD 1241, item 1, An Act To Encourage Child Support Accountability

An Act To Encourage Child Support Accountability

Be it enacted by the People of the State of Maine as follows:

Sec. 1. 18-A MRSA §3-906, sub-§(a), as amended by PL 1997, c. 73, §3 and affected by §4, is further amended to read:

(a). Unless a contrary intention is indicated by the will and except as provided in section 3-917, the distributable assets of a decedent's estate must be distributed as follows.

(1). A specific devisee must receive the thing devised to that devisee, and a spouse or child who has selected particular assets of an estate as provided in section 2-402 must receive the items selected.

(2). Any homestead or family allowance or pecuniary devise may be satisfied by value in kind, in the personal representative's discretion, if:

(i) The person entitled to the payment has not demanded payment in cash;

(ii) The property distributed in kind is valued at fair market value as of the date of its distribution; and

(iii) No residuary devisee has requested that the asset to be distributed remain a part of the residue of the estate or if, a residuary devisee has requested that the asset to be distributed remain a part of the residue of the estate, there are insufficient other assets to which no residuary devisee has made such a request to permit satisfaction of the estate's obligations and funding of all pecuniary devises made under the decendent's decedent's will.

(3). For the purpose of valuation under paragraph (2), securities regularly traded on recognized exchanges, if distributed in kind, are valued at the price for the last sale of like securities traded on the business day prior to distribution or, if there was no sale on that day, at the median between amounts bid and offered at the close of that day. Assets consisting of sums owed the decedent or the estate by solvent debtors as to which there is no known dispute or defense are valued at the sum due with accrued interest or discounted to the date of distribution. For assets that do not have readily ascertainable values, a valuation as of a date not more than 30 days prior to the date of distribution, if otherwise reasonable, controls. For purposes of facilitating distribution, the personal representative may ascertain the value of the assets as of the time of the proposed distribution in any reasonable way, including the employment of qualified appraisers, even if the assets may have been previously appraised.

(4). The residuary estate may be distributed by the personal representative in cash or in kind, in accordance with the best interests of the residuary devisees. Residuary assets may be distributed, at the personal representative's discretion, in pro rata or non pro rata shares; except that residuary assets not distributed pro rata must be valued as of the date on which they are distributed.

Sec. 2. 18-A MRSA §3-911, as enacted by PL 1979, c. 540, §1, is amended to read:

§ 3-911. Partition for purpose of distribution

When 2 or more heirs or devisees are entitled to distribution of undivided interests in any real or personal property of the estate, the personal representative or one or more of the heirs or devisees may petition the court prior to the formal or informal closing of the estate, to make partition. The personal representative shall notify the court of any lien that may be imposed pursuant to section 3-917 against an heir's or a devisee's interest in the property. After notice to the interested heirs or devisees and to the Department of Health and Human Services if the court determines that the interest of an interested heir or devisee may be subject to a lien pursuant to section 3-917, the court shall partition the property in the same manner as provided by the law for civil actions of partition. The court may direct the personal representative to sell any property which that cannot be partitioned without prejudice to the owners and which that cannot conveniently be allotted to any one party.

Sec. 3. 18-A MRSA §3-917 is enacted to read:

§ 3-917. Child support debt as lien against inheritance

1. Definitions. As used in this section, unless the context otherwise indicates, the following terms have the following meanings.

A. "Child support debt" means child support debt that has been liquidated by judicial or administrative action.

B. "Department" means the Department of Health and Human Services.

C. "Inheritance" means the real or personal property, including cash, that an heir or devisee is entitled to receive from the decedent's estate pursuant to this Title.

D. "Registry operator" means the department or an entity with whom the department enters into a contract to maintain the registry pursuant to subsection 2.

2. Registry. The department shall create and maintain, or shall contract with a private entity to create and maintain, a secure, electronically accessible registry containing information regarding individuals with outstanding child support debt. The department shall regularly enter into the registry information including:

A. The name and social security number of each individual with outstanding child support debt;

B. The account number or identifier assigned by the department to the outstanding child support debt;

C. The amount of the outstanding child support debt; and

D. Any other information necessary to effectuate the purposes of this section.

3. Electronic access to information; procedures. A personal representative shall electronically access the registry under subsection 2 in accordance with this subsection.

A. Before distributing an inheritance to an heir or a devisee, the personal representative shall obtain the name, address, date of birth and social security number of the heir or devisee and shall electronically submit this information to the registry operator.

B. Upon receipt of information pursuant to paragraph A, the registry operator shall electronically inform the personal representative whether the heir or devisee is listed in the registry. If the heir or devisee is listed in the registry, the registry operator shall inform the personal representative of the amount of the heir's or devisee's outstanding child support debt and the account number or identifier assigned to the outstanding child support debt and shall provide the personal representative with a notice of withholding that meets the requirements of subsection 5.

C. If the registry operator informs the personal representative that the heir or devisee is not listed in the registry or if the personal representative is unable to obtain information from the registry operator after attempting in good faith to do so, the personal representative may immediately distribute the property to the heir or devisee.

D. If the registry operator informs the personal representative that the heir or devisee is listed in the registry, the personal representative may not distribute property to the heir or devisee until after the personal representative complies with subsection 6, unless the value of the distribution exceeds the amount of outstanding child support debt, in which case the personal representative may immediately distribute to the heir or devisee the portion of the property that is in excess of the amount of the heir's or devisee's outstanding child support debt.

4. Lien against inheritance. If the registry operator informs a personal representative pursuant to this section that an heir or devisee is listed in the registry under subsection 2, the department has a valid lien upon and claim of lien against the heir's or the devisee's inheritance in the amount of the heir's or devisee's outstanding child support debt.

5. Notice of withholding. The personal representative shall provide a written notice of withholding using a form developed by the department to an heir or devisee whose inheritance is subject to a lien under subsection 4. The notice must inform the heir or devisee that an amount equal to the amount of the lien will be withheld from the heir's or the devisee's inheritance unless the heir or devisee pays the personal representative that amount within 30 days. The notice must also inform the heir or devisee of the right to an administrative hearing to challenge the amount or existence of the outstanding child support debt.

6. Withholding of inheritance. The personal representative shall, to the extent possible, satisfy a lien created under subsection 4 in accordance with this subsection.

A. If the heir or devisee whose inheritance is subject to the lien pays the amount of the lien to the personal representative within 30 days of receipt of the notice in subsection 5, the personal representative shall transmit that payment to the department together with a report of the name, address and social security number of the heir or devisee from whom the payment was received, the account number or identifier assigned to the debt and the name and address of the personal representative. The personal representative shall then distribute the inheritance to the heir or devisee.

B. If the heir or devisee whose inheritance is subject to the lien does not pay the amount of the lien to the personal representative or request an administrative hearing to challenge the amount or existence of the outstanding child support debt within 30 days of receipt of the notice in subsection 5, the personal representative shall withhold from the cash portion of the inheritance an amount equal to the amount of the lien created under subsection 4. If the cash portion of the inheritance is less than the amount of the lien, the personal representative may sell the noncash portion of the inheritance and withhold from the proceeds an amount sufficient to satisfy the lien. The personal representative shall transmit the amount withheld to the department together with a report of the name, address and social security number of the heir or devisee from whom the amount was withheld, the account number or identifier assigned to the debt and the name and address of the personal representative. The personal representative shall then distribute the balance of the inheritance, if any, to the heir or devisee.

7. Administrative hearing. An heir or devisee who receives a notice of withholding pursuant to subsection 5 has the right, within 30 days of receipt of the notice of withholding, to request from the department an administrative hearing. The hearing is limited to questions regarding the amount or existence of the child support debt as well as whether any postliquidation events have affected the heir's or devisee's liability. The administrative hearing decision constitutes final agency action.

8. Personal representative costs. The personal representative's reasonable and necessary costs of complying with this section are reimbursable as expenses of administration.

Sec. 4. Department of Health and Human Services to make recommendations. No later than January 15, 2018, the Department of Health and Human Services shall submit to the joint standing committee of the Legislature having jurisdiction over judiciary matters recommendations for implementing a program that requires an unemployed or underemployed child support obligor who has a substantial unpaid child support debt to engage in at least 30 hours per week of uncompensated community service work, receiving an hourly credit against the obligor's child support debt equivalent to the minimum wage. The recommendations must include:

1. Recommendations for ensuring that child support obligors who participate in the program engage in uncompensated community service work that benefits the State;

2. Recommendations on the program administration structure needed to ensure that child support obligors satisfy program requirements;

3. Recommendations regarding the appropriate consequences to child support obligors for noncompliance with program requirements;

4. Recommendations for ensuring consistency between a child support obligor's rights and responsibilities under the program and the terms of a judicial or administrative child support order; and

5. Recommendations for legislation necessary to implement the program.

Sec. 5. Implementing legislation. The joint standing committee of the Legislature having jurisdiction over judiciary matters may submit a bill, including recommendations provided by the Department of Health and Human Services pursuant to section 4, to the Second Regular Session of the 128th Legislature to establish a program that requires child support obligors with substantial unpaid obligations to participate in a program of mandatory community service.

summary

This bill requires a personal representative to search an electronic registry of child support obligors with outstanding child support debt prior to distributing the assets of an estate to an heir or a devisee. The personal representative shall withhold from an heir's or a devisee's inheritance the amount of any outstanding child support debt and forward that amount to the Department of Health and Human Services.

This bill also directs the Department of Health and Human Services to make recommendations to the joint standing committee of the Legislature having jurisdiction over judiciary matters on the most effective way to create a program that requires an unemployed or underemployed child support obligor who has a substantial unpaid child support debt to engage in at least 30 hours per week of uncompensated community service work, receiving an hourly credit against the obligor's child support debt equivalent to the minimum wage. It authorizes the joint standing committee to submit a bill to implement this program to the Second Regular Session of the 128th Legislature.

HP0864 LD 1241	Session - 128th Maine Legislature		LR 1611 Item 1
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