HBA-AMW H.B. 691 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 691 By: Thompson Juvenile Justice & Family Issues 4/8/2001 Introduced BACKGROUND AND PURPOSE Prior to 1995, child support was the only type of family support that could be ordered in Texas and the only type of support for which wages could be garnished. The 1995 welfare reform bill included a provision for limited spousal maintenance, however, spousal maintenance was difficult to enforce without a garnishment provision. Legislation enacted in 1999 authorized garnishment of the wages of a person ordered to pay spousal maintenance. Although a court is now able to enforce spousal maintenance payments, current law does not grant child support priority over spousal maintenance or clearly limit all support to 50 percent of an obligor's earnings. House Bill 691 establishes provisions regarding income withholding for spousal maintenance, including granting priority to child support payments and limiting the amount of support an obligor is required to pay. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency or institution. ANALYSIS House Bill 691 amends the Family Code to create provisions regarding income withholding for spousal maintenance. The bill authorizes the court to order that income be withheld from the disposable earnings of the obligor in a proceeding in which periodic payments of spousal maintenance are ordered, modified, or enforced and sets forth general guidelines for income withholding (Sec. 8.101). The bill creates provisions relating to income withholding for arrearages in addition to current spousal maintenance, withholding for arrearages when current maintenance is not due, and withholding of income to satisfy judgment for arrearages (Secs. 8.102 - 8.104). The bill also provides that an order or writ of withholding has priority over any garnishment, attachment, execution, or other order affecting disposable earnings, except for an order or writ of withholding for child support (Sec. 8.105). The bill establishes the time limit for issuing an order or writ of withholding and specifies the contents of an order of withholding (Secs. 8.151 and 8.152). The bill creates provisions regarding the procedures for requesting, issuing, and delivering an order or writ of withholding (Secs. 8.153, 8.154, and 8.262). The bill provides that an order or writ of withholding is binding on an employer (Secs. 8.107 and 8.201). The bill also sets forth provisions regarding the maximum amount that an employer must withhold from the obligor's earnings and the procedures for a voluntary writ of withholding by the obligor (Secs. 8.106 and 8.108). H.B. 691 sets forth provisions for employers regarding the effective date and duration of income withholding, the procedures for remitting withheld payments and requesting a hearing on the applicability of the order or writ of withholding, liability and obligation for payments, and liability for discriminatory hiring or discharge (Secs. 8.202, 8.203, 8.205, 8.206, 8.208, and 8.265). The bill establishes procedures for employers who receive multiple orders or writs from the same obligor and authorizes employers to deduct an administrative fee of not more than $5 each month from the obligor's disposable earnings in addition to the amount withheld as spousal maintenance (Secs. 8.204 and 8.207). The bill establishes procedures for penalties for employer noncompliance and the notification of termination of employment or of new employment regarding an obligor (Secs. 8.209 and 8.210). H.B. 691 sets forth procedures for filing the notice of application for a writ of withholding, the contents of the notice of such an application, and procedures for the delivery of the notice of such an application (Secs. 8.251, 8.252, and 8.255). The bill creates provisions for special exceptions to the notice, for the extension of the repayment schedule because of an unreasonable hardship on the obligor or the obligor's family, and procedures for an obligor who fails to receive the notice (Secs. 8.259, 8.264, and 8.266). The bill specifies the circumstances in which a writ of withholding is authorized to include additional arrearages and the procedures for handling an interstate request for withholding (Secs. 8.253 and 8.254). H.B. 691 establishes requirements for requesting a writ of withholding, the contents of the writ of withholding, and the procedures for the issuance and delivery of the writ of withholding (Secs. 8.261 8.263, and 8.267). The bill sets forth provisions relating to a writ of withholding after arrearages are paid by the obligor (Sec. 8.260). The bill also creates provisions regarding the filing of a motion to stay issuance of a writ of withholding and the procedures for a hearing on the motion to stay (Secs. 8.256 - 8.258). H.B. 691 creates provisions regarding the modification, reduction, or termination of income withholding (Secs. 8.301 and 8.302). The bill also sets forth provisions relating to the delivery of the order of reduction or termination of withholding and to the liability of employers for withholding (Secs. 8.303 and 8.304). EFFECTIVE DATE September 1, 2001.