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Current Status Bill Number:View additional legislative information at the LPITS web site.725 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:19990415 Primary Sponsor:Holland All Sponsors:Holland, Courtney, Glover and Ryberg Drafted Document Number:l:\s-jud\bills\holland\jud0054.dhh.doc Residing Body:House Current Committee:Judiciary Committee 25 HJ Date of Last Amendment:19990427 Subject:Minors, Child support enforcement and collection; wage withholdings, Social Services Department History Body Date Action Description Com Leg Involved ______ ________ ______________________________________ _______ ____________ House 19990428 Introduced, read first time, 25 HJ referred to Committee Senate 19990427 Amended, read third time, sent to House Senate 19990422 Read second time, notice of general amendments Senate 19990421 Recalled from Committee, 11 SJ placed on the Calendar Senate 19990415 Introduced, read first time, 11 SJ referred to Committee Versions of This Bill Revised on April 21, 1999 - Word format Revised on April 27, 1999 - Word format
Indicates Matter Stricken
Indicates New Matter
AS PASSED BY THE SENATE
April 27, 1999
S. 725
S. Printed 4/27/99--S.
Read the first time April 15, 1999.
TO AMEND SECTIONS 20-7-420, AS AMENDED, 20-7-1315, AS AMENDED, AND 20-7-1440, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO COLLECTION OF CHILD SUPPORT, SO AS TO PROVIDE FOR A CENTRALIZED SYSTEM FOR THE COLLECTION OF WAGE WITHHOLDING; TO AMEND SECTIONS 20-1-220, AS AMENDED, 20-3-235, 20-7-853, 20-7-854, 20-7-949, AS AMENDED, 20-7-957, AS AMENDED, 20-7-1295, 44-7-77, 44-63-75, AS AMENDED, 43-5-595, AND 43-5-596, RELATING TO THE USE OF SOCIAL SECURITY NUMBERS IN CHILD SUPPORT ENFORCEMENT, AND TO PROVIDE THAT LIENS CREATED UNDER SECTION 20-7-1295 MAY BE MAINTAINED BY THE REGISTER OF DEEDS UNDER LOCAL PROCEDURES SO AS TO PROVIDE FOR THE USE OF ALIEN IDENTIFICATION NUMBERS IN CHILD SUPPORT ENFORCEMENT; TO AMEND SECTION 20-7-941, RELATING TO THE MEANINGS OF RELEVANT CHILD SUPPORT TERMS, SO AS TO REDEFINE "COMPLIANCE WITH AN ORDER OF SUPPORT" AND "LICENSING ENTITY" AND TO PROVIDE A DEFINITION FOR "DIRECTOR"; TO AMEND SECTIONS 20-7-942 AND 20-7-945, AS AMENDED, RELATING TO THE LICENSE REVOCATION PROGRAM, SO AS TO DECREASE THE TIME FOR REVOCATION FROM NINETY DAYS TO FORTY-FIVE DAYS; TO AMEND SECTION 20-7-1130, AS AMENDED, RELATING TO ENFORCEMENT OF SUPPORT AND INCOME WITHHOLDING ORDERS, SO AS TO CREATE DISCRETION IN THE USE OF ADMINISTRATIVE PROCEDURES; TO AMEND SECTION 43-5-585, AS AMENDED, RELATING TO REPORTING ARREARAGES TO CONSUMER CREDIT REPORTING AGENCIES, SO AS TO PROVIDE FOR REPORTING WHEN ARREARAGE IS EQUAL TO OR GREATER THAN ONE THOUSAND DOLLARS; AND TO AMEND SECTION 43-5-598, AS AMENDED, RELATING TO NEW HIRE REPORTING, SO AS TO PROVIDE IMMUNITY FROM CIVIL AND CRIMINAL LIABILITY FOR EMPLOYERS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 20-1-220 of the 1976 Code, as last amended by Act 71 of 1997, is further amended to read:
"Section 20-1-220. No marriage license may be issued unless a written application shall have has been filed with the probate judge, or in Darlington and Georgetown Counties counties the clerk of court who issues the license, at least twenty-four hours before its the issuance of the license. The application must be signed by both of the contracting parties and shall contain the same information as required for the issuing of the license including the social security numbers, or the alien identification numbers assigned to resident aliens who do not have social security numbers, of the contracting parties. The license issued, in addition to other things required, shall must show the hour and date of the filing of the application and the hour and date of the issuance of the license. The application must be kept by the probate judge or clerk of court as a permanent record in his office. A probate judge or clerk of court issuing a license contrary to the provisions, upon conviction, must be fined not more than one hundred dollars or not less than twenty-five dollars, or imprisoned for not more than thirty days or not less than ten days."
SECTION 2. Section 20-3-235 of the 1976 Code, as added by Act 71 of 1997, is amended to read:
"Section 20-3-235. A decree of divorce shall set forth the social security numbers, or the alien identification numbers assigned to resident aliens who do not have social security numbers, of the parties in the divorce. Filing the required form with the Department of Health and Environmental Control complies with the requirements of this section."
SECTION 3. Section 20-7-420(21) of the 1976 Code is amended to read:
"(21) to determine the manner in which sums ordered paid for support shall be paid and applied, either to a person through the court, or through the clerk of court, or through a centralized wage withholding system if required by federal statute or regulation."
SECTION 4. Section 20-7-853 of the 1976 Code, as added by Act 71 of 1997, is amended to read:
"Section 20-7-853. An administrative or judicial order which includes a determination of paternity or a provision for child support shall set forth the social security numbers, or the alien identification numbers assigned to resident aliens who do not have social security numbers, of both parents."
SECTION 5. Section 20-7-854(A)(4) of the 1976 Code, as added by Act 74 of 1997, is amended to read:
"(4) social security number or the alien identification number assigned to a resident alien who does not have a social security number;"
SECTION 6. Section 20-7-941(A) of the 1976 Code, as last amended by Act 133 of 1997, is amended to read:
"(A) As used in this part:
(1) 'Arrearage' means the total amount overdue under an order of support.
(2) 'Compliance with an order for support' means that pursuant to an order for support the person required to pay under the order is in arrears no more than an amount equal to two months' support obligation five-hundred dollars and has paid the full child support obligation for the last two consecutive months.
(3) 'Director' means the Director of the Child Support Enforcement Division of the State Department of Social Services or his designee.
(4) 'Division' means the Child Support Enforcement Division of the State Department of Social Services.
(4)(5) 'License' means:
(a) a certificate, license, credential, permit, registration, or any other authorization issued by a licensing entity that allows an individual or is required of an individual to engage in a business, occupation, or profession and includes, but is not limited to, a medical license, teaching certificate, commission and certificate of training from the South Carolina Criminal Justice Academy for a sworn law enforcement officer, and a hunting, fishing, or trapping license for commercial use and the privilege to hunt, fish, or trap or hold a hunting, fishing, or trapping license for commercial use;
(b) a driver's license and includes, but is not limited to, a beginner's or instruction permit, a restricted driver's license, a motorcycle driver's license, or a commercial driver's license;
(c) a hunting, fishing, or trapping license for recreational purposes and the privilege to hunt, fish, or trap or hold a hunting, fishing, or trapping license for recreational purposes;
(d) a watercraft registration.
'License' does not include the authority to practice law; however, the Supreme Court may consider as an additional ground for the discipline of members of the bar the wilful violation of a court order including an order for child support. and the The department has grounds to file a grievance with the Supreme Court if a licensed attorney is in wilful violation of a court order for child support.
(5)(6) 'Licensee' means an individual holding a license issued by a licensing entity.
(6)(7) 'Licensing entity' or 'entity' means, for the purposes of issuing or revoking a license, a state, county, or municipal agency, board, department, office, or commission that issues a license.
(7)(8) 'Order for support' means an order being enforced by the division under Title IV-D of the Social Security Act and which provides for periodic payments of funds for the support of a child or maintenance of a spouse or former spouse and support of a child, whether temporary or final and includes, but is not limited to, an order for reimbursement for public assistance or an order for making periodic payments on a support arrearage."
SECTION 7. Section 20-7-942 of the 1976 Code, as added by Act 102 of 1995, is amended to read:
"Section 20-7-942. If a licensee is out of compliance with an order for support, the licensee's license must be revoked unless within ninety forty-five days of receiving notice that the licensee is out of compliance with the order, the licensee has paid the arrearage owing under the order or has signed a consent agreement with the division establishing a schedule for payment of the arrearage."
SECTION 8. Section 20-7-945(A), (D), (F), and (G) of the 1976 Code are amended to read:
"(A) The division shall review the information received pursuant to Section 20-7-944 and determine if a licensee is out of compliance with an order for support. If a licensee is out of compliance with the order for support, the division shall notify the licensee that ninety forty-five days after the licensee receives the notice of being out of compliance with the order, the licensing entity will be notified to revoke the licensee's license unless the licensee pays the arrearage owing under the order or signs a consent agreement establishing a schedule for the payment of the arrearage.
(D) Upon the division and the licensee reaching an agreement on a schedule for payment of the arrearage, the division director shall submit to the court a consent order containing the payment schedule which upon the court's approval is enforceable as any order of the court. If the court does not approve the consent order, the court may require a hearing on a case-by-case basis for the judicial review of the payment schedule agreement the director shall file an agreement and order pursuant to Section 20-7-9525(A) and (B) with the family court in the county in which the order for support was issued. The clerk shall stamp the date of receipt of the agreement and order and shall file it under the docket number of the order of support. The agreement and order shall have all the force, effect, and remedies of an order of the court including, but not limited to, wage assignment and contempt of court.
(F) The notification given a licensee that the licensee's license will be revoked in ninety forty-five days clearly must state the remedies and procedures available to a licensee under this section.
(G) If at the end of the ninety forty-five days the licensee still has an arrearage owing under the order for support or the licensee has not signed a consent agreement establishing a payment schedule for the arrearage, the division shall notify the licensing entity to revoke the licensee's license. A license only may be reinstated if the division notifies the licensing entity that the licensee no longer has an arrearage or that the licensee has signed a consent agreement."
SECTION 9. Section 20-7-949 of the 1976 Code, as last amended by Act 71 of 1997, is further amended to read:
"Section 20-7-949. An applicant for a license or for renewal of a license shall submit the applicant's social security number, or the alien identification number assigned to a resident alien who does not have a social security number, to the licensing entity which must be recorded on the application."
SECTION 10. Section 20-7-957 of the 1976 Code, as last amended by Act 71 of 1997, is further amended to read:
"Section 20-7-957. Upon a finding that the putative father is the natural father of the child, the court must issue an order designating the putative father as the natural father. The order also shall set forth the social security numbers, or the alien identification numbers assigned to resident aliens who do not have social security numbers, of both parents. The order shall establish a duty of support and provide for child support payments in amounts and at a frequency to be determined by the court. The order also shall provide for other relief which has been properly prayed for in the pleadings and which is considered reasonable and just by the court. Upon a finding that the putative father is not the father of the child, the court shall issue an order which sets forth this finding."
SECTION 11. Section 20-7-1130 of the 1976 Code, as last amended by Act 452 of 1996, is further amended to read:
"Section 20-7-1130. (A) A party seeking to enforce a support order, an income withholding order, or both, issued by a tribunal of another state may send the documents required for registering the order to a support enforcement agency of this State.
(B) On receipt of the documents the support enforcement agency, without initially seeking to register the order, shall consider and, if appropriate, use any administrative procedure available to enforce a support order, an income withholding order, or both. If the obligor does not contest administrative enforcement, the support order need not be registered. If the obligor contests the validity or administrative enforcement of the order by asserting a ground for contesting the order recognized by the law of this State, the support enforcement agency shall register the order pursuant to this subarticle."
SECTION 12. Section 20-7-1295(C) of the 1976 Code, as added by Act 71 of 1997, is amended to read:
"(C) The division shall file notice of a lien with respect to real property with the register of deeds for any county in the State where the obligor owns property. The social security number, or the alien identification number assigned to a resident alien who does not have a social security number, of the obligor must be noted on the notice of the lien. The filing operates to perfect a lien when recorded, as to any interest in real property owned by the obligor that is located in the county where the lien is recorded. A special index for liens Liens created under this section must be maintained by the register of deeds of each county of the State, in accordance with established local procedures for recordation. If the obligor subsequently acquires an interest in real property, the lien is perfected upon the recording of the instrument by which the interest is obtained in the register of deeds where the notice of the lien was filed within six years prior thereto. A child support lien is perfected as to real property when both the notice thereof and a deed or other instrument in the name of the obligor are on file in the register of deeds for the county where the obligor owns property without respect to whether the lien or the deed or other instrument was recorded first. The division also shall file notice of a child support lien, with the social security number, or the alien identification number assigned to a resident alien who does not have a social security number, of the obligor on the notice, with respect to personal property with the Department of Natural Resources, a county, or other office or agency responsible for the filing or recording of liens. The filing of a notice of a lien or of a waiver or release of a lien must be received and registered or recorded without payment of a fee. The division may file notice of a lien or waiver or release of a lien or may transmit information to or receive information from any registry of deeds or other office or agency responsible for the filing or recording of liens by any means, including electronic means. Any lien placed against a vehicle with a title issued by the Division of Motor Vehicles is not perfected until notation of the lien is recorded on the vehicle's title by the Division of Motor Vehicles. No fee is required to reissue this title. The perfected lien is not subordinate to a recorded lien except a lien that has been perfected before the date on which the child support lien was perfected. The division, upon request of the obligor, may subordinate the child support lien to a subsequently perfected mortgage. To assist in the collection of a debt by the division, the division may disclose the name of an obligor against whom a lien has arisen and other identifying information including the existence of the lien and the amount of the outstanding obligation."
SECTION 13. Section 20-7-1315 of the 1976 Code, as last amended by Act 71 of 1997, is further amended to read:
"Section 20-7-1315. (A) As used in this section:
(1) 'Order for support' means any order of a court or an administrative agency of competent jurisdiction which provides for periodic payments of funds for the support of a child or maintenance of a spouse or former spouse and support of a child, whether temporary or final, whether incidental to a proceeding for divorce, separation, separate maintenance, paternity, guardianship, or otherwise and includes any order providing for a modification of support payment of an arrearage or reimbursement of support.
(2) 'Delinquency' means when a support payment owed by an obligor pursuant to an order of support is overdue in an amount equal to at least one month's support obligation.
(3) 'Arrearage' means the total amount of unpaid support obligations.
(4) 'Court' as used in this section means family court.
(5) 'Income' means any periodic form of payment to an individual regardless of source including, but not limited to, wages, salary, commission, bonuses, compensation as an independent contractor, workers' compensation, disability, annuity and retirement benefits, payments made pursuant to a retirement program, interest, and any other payments made by a person or an agency or department of the federal, state, or local government provided the income excludes:
(a) amounts required to by law to be withheld, other than creditor claims, including, but not limited to, federal, state, and local taxes, social security and other retirement deductions, and disability contributions;
(b) amounts exempted by federal law;
(c) public assistance payments.
Any other state or local laws which limit or exempt income or the amount or percentage of income that can be withheld do not apply.
(6) 'Obligor' means an individual who is required to make payments pursuant to order for support.
(7) 'Obligee' means an individual or the individual's assignee who is entitled to receive payments pursuant to an order of support.
(8) 'Payor' means any payor of income to an obligor. For purposes of this section, the South Carolina Employment Security Commission is not considered to be a payor.
(B)(1) For all Title IV-D cases in which support orders are issued or modified after October 31, 1990, and for all nontitle IV-D cases in which support orders are issued or modified after January 3, 1994, the income of an obligor is subject to immediate withholding as of the effective date of the order without the requirement that an arrearage accumulate. However, income is not subject to withholding if:
(a) one of the parties demonstrates and the court finds that there is good cause not to require immediate income withholding; or
(b) a written agreement is reached between both parties which provides for an alternative arrangement.
(2) All orders for support entered or modified in the State before October 1, 1996, if not otherwise subject to wage withholding, are subject to withholding if a delinquency occurs without the need for a judicial or administrative hearing. These orders must be construed to contain this withholding provision even if the provision has been omitted from the written order; however, the court may order withholding to begin immediately for good cause shown. The court is required to make specified written findings to support immediate withholding.
(3) Income withholding must be initiated in all Title IV-D cases upon the request of the obligee without the necessity of a delinquency, if the State approves the request in accordance with the procedures and standards as it may establish. If the obligee requests income withholding pursuant to this subsection, notice of the request must be provided to the obligor by the clerk of court, and if the obligor objects to the income withholding within ten days after the postmarked date of the notice, a hearing must be held, and the family court shall subject the obligor's income to withholding unless the court finds that there is good cause not to require immediate income withholding. Where there is no objection by the obligor after proper notice, the clerk of court shall implement immediate income withholding.
(C)(1) An obligor may petition the court at any time prior to the occurrence of a delinquency seeking an order for income withholding procedures to begin immediately.
(2) Where the obligor makes payments directly to the obligee pursuant to an order for support and where income withholding procedures take effect, the provisions to pay directly are superseded by the withholding process and the obligor and the payor on behalf of the obligor during the period of withholding must pay this support through the court.
(D)(1) If a delinquency occurs, the clerk of court shall prepare, file, and serve on the obligor a verified notice of delinquency within fifteen calendar days of the delinquency if the obligor's address is known or if the address is not known, within fifteen calendar days of locating the obligor. If the obligor makes payments pursuant to an order for support directly to the obligee and the obligee seeks income withholding, the notice of delinquency must be verified by the obligee and then served on the obligor by the clerk of court as with any other notice of delinquency.
(2) The verified notice of delinquency must be served on the obligor by regular mail addressed to the obligor's last known address or place of employment. Upon mailing the notice, the clerk of court shall file a certificate of mailing stating the name and address to which the notice was mailed and the date on which it was mailed. If service cannot be effected as set forth in this subsection, the obligor may be served as prescribed for service in civil actions.
(3) The notice of delinquency shall inform the obligor that a delinquency has occurred and shall recite the monthly support obligations of the obligor pursuant to the order of support, the total amount of the arrearage as of the date of the notice, and the amount of income to be withheld. The notice must clearly state that a notice to withhold will be sent to the obligor's current or subsequent payor, income withholding will begin, and that a judgment lien may be imposed against the obligor's personal or real property in the amount of the arrearage pursuant to Section 20-7-1316, unless the obligor files a petition to stay service in accordance with subsection (E).
(E)(1) The obligor may prevent a notice to withhold from being served on the obligor's payor and prevent the recording of the arrearage pursuant to Section 20-7-1316 by filing a petition to stay service with the clerk of court with jurisdiction of the matter within ten days of the date that the notice of delinquency is postmarked; however, the grounds for granting the petition to stay service are limited to a dispute concerning the identity of the obligor or the existence or amount of the arrearage.
(2) Filing of a petition to stay service within the ten days required under this subsection prohibits the clerk of court from serving the notice to withhold on any payor of the obligor and prohibits the recordation of the arrearage.
(3) If a petition to stay service is filed, a hearing on the petition must be held within thirty days of its filing. The obligor, obligee, and Department of Social Services, where appropriate, must be notified by the clerk of court of the date, time, and place of the hearing and the court must decide the matter, notify the obligor, and enter an order granting or denying relief or amending the notice of delinquency within forty-five days of the date the notice of delinquency was mailed to the obligor. If the court finds that a delinquency existed when the notice of delinquency was mailed, the court shall order immediate service of the notice to withhold and the arrearage may be recorded immediately pursuant to Section 20-7-1316. The court shall inform the obligor of the time frame within which withholding is to begin and shall provide the obligor in writing with the information contained in the notice to withhold to be served on the payor with respect to the withholding.
(4) Upon filing an affidavit with the court stating that a petition to stay service was not timely filed because the notice of delinquency was not received and that grounds exist for a petition to stay service as stated in subsection (E)(1), the obligor is permitted to file a petition to withdraw the notice to withhold, terminate the withholding procedures, and remove the judgment created by the recording of the arrearage. Income withholding, however, may not be interrupted unless the court enters an order granting the relief sought by the obligor based on the limited grounds for a petition to stay service.
(F)(1) Fifteen days following the mailing of the notice of the delinquency to the obligor and if no petition to stay service has been filed, the clerk of court shall serve a notice to withhold on the payor or its agent by regular mail and may record the arrearage pursuant to Section 20-7-1316.
(2) The notice to withhold shall:
(a) direct any payor to withhold at the obligor's regularly scheduled pay periods an amount which over the period of one month would constitute one month's support obligation plus applicable fees pursuant to this section and costs as provided by Section 20-7-1440;
(b) direct any payor to withhold an additional amount toward any arrearage until the arrearage is paid in full; however, amounts to be withheld under this item and item (2)(a) may not exceed the limits set forth by the Federal Consumer Credit Protection Act (15 U.S.C. Section 1673(b));
(c) direct any payor to notify the clerk if health insurance is available to the obligor for the benefit of children for whom child support is being withheld;
(d) state the rights, responsibilities, and liabilities of the payor under this section.
(3) The payor shall then deduct the designated amount pursuant to the notice to withhold beginning no later than the next regularly scheduled pay period following the pay period during which the payor was served. Payors need not change their regular payroll pattern and may combine all withheld amounts into one check for a particular clerk of court with an itemized statement showing accounts attributable to each obligor for each obligee. For each instance of withholding of income, the payor is entitled to receive a fee of up to three dollars to be deducted from the income of the obligor in addition to the amounts withheld pursuant to the notice to withhold unless the fee is waived by the payor.
(4) If there is more than one notice to withhold on a single obligor, the payor must comply with the notices by withholding the amounts designated in the notices to the extent possible pursuant to the Federal Consumer Credit Protection Act (15 U.S.C. Section 1673(b)). If the payor cannot fully comply with the notices because the amounts to be withheld would exceed the limits under the Federal Consumer Credit Protection Act, the payor shall notify the court in writing as to its reasons for failing to fully comply. Priority must be given to current support obligations. In no case may the allocation result in a withholding for one of the support obligations not being implemented.
(5) The payor employer shall promptly pay the amount withheld to the clerk of court centralized wage withholding system within ten seven working days of the date income is withheld, in accordance with the notice to withhold and in accordance with any subsequent notification received from the clerk of court concerning withholding. The payor shall provide the date on which the income is withheld.
(6) Upon the records of the clerk of court reflecting the satisfaction of an arrearage, the clerk of court shall serve upon the payor by regular mail a notice of reduction of withholding. This notice shall inform the payor that the arrearage has been satisfied and to discontinue withholding the additional amount as prescribed in item 2(b) of this subsection.
(7) Within twenty days after the obligor is no longer employed by the payor, the payor shall return a copy of the notice to withhold to the clerk of court and shall notify the clerk of court in writing of the date the obligor's employment terminated, the date of the obligor's final paycheck, the obligor's home address, and obligor's new employer and address, if known.
(8) Withholding of income from an obligor under this section has priority over any other legal process under state law against the same wages. Payment pursuant to a notice to withhold is a complete defense by the payor against any claims of the obligor or the obligor's creditors as to the sum paid.
(9) No payor may discharge, refuse to hire, or otherwise penalize any obligor because of the duty to withhold income.
(10) The responsibility of a payor who employs an obligor to withhold support from the pay of the obligor ends when the obligor leaves the employ of the payor. If this termination of employment occurs during the middle of a pay period, the final amount required to be withheld must be proportionately reduced in the same percentage that the time worked has to the time of the full pay period.
(11) If the Division of Child Support of the Department of Social Services is notified by the South Carolina Employment Security Commission in accordance with Section 41-35-140 that an obligor is receiving unemployment insurance benefits, the division must notify the court for the intercept of unemployment insurance benefits if a delinquency occurs and the obligor's case is a Title IV-D case. The intercept of unemployment insurance benefits must be in accordance with Section 41-35-140.
(G)(1) The clerk of court may suspend income withholding because of inability to deliver the income withheld to the obligee due to the obligee's failure to provide a mailing address or other means of delivery. Upon relocating the obligee and upon meeting the requirements of notice and service pursuant to this section, income withholding must be reinstated.
(2) An obligor may petition the court at any time to terminate income withholding pursuant to a notice to withhold:
(a) if there is no longer a current order for support and all arrearages are paid; or
(b) if the obligor requests termination and withholding has not been terminated previously and subsequently reinstated and the obligor meets the conditions for an alternative arrangement.
However, if termination is granted and subsequently a delinquency occurs, the clerk of court shall reinstate withholding procedures by complying with all requirements for notice and service pursuant to this section.
(3) The clerk of court shall serve on the payor by regular mail a copy of any order entered pursuant to this subsection or subsection (E)(4) that affects the duties of the payor. If service cannot be effected as set forth in this subsection, the payor may be served as prescribed for service in civil actions.
(4) The notice to withhold continues to be binding upon the payor until service of any order of the court entered under this subsection or subsection (E)(4) or until notice is served on the payor by the clerk of court that the underlying order is, for other reasons such as expiration of the support obligation, no longer in effect.
(H)(1) An obligee who is receiving income withholding payments under this section shall notify the clerk of court of any change of address within seven days of the change.
(2) An obligee who is a recipient of public aid must send a copy of any notice of delinquency filed pursuant to subsection (D) to the Division of Child Support of the South Carolina Department of Social Services.
(3) An obligor whose income is being withheld or who has been served with a notice of delinquency pursuant to this section shall notify the clerk of court of any new payor and of the availability of health insurance for any children for whom support is ordered within seven days after employment commences.
(4) Upon receiving any other support payment including, but not limited to, a tax offset under federal or state law or any payment toward an arrearage, the Department of Social Services, within the time permitted by Title IV-D of the Social Security Act, shall provide notice of the payment to the clerk of court.
(5) Any clerk of court who collects, receives, or disburses payment pursuant to an order for support or a notice to withhold shall maintain complete, accurate, and clear records of all payments and their disbursements. Certified copies of payment records maintained by the clerk of court must without further proof be admitted into evidence in any legal proceedings in which child support is an issue.
(6) The Department of Social Services and the Office of Court Administration shall design suggested legal forms for proceeding under this section and Section 20-7-1316 and shall make available to the courts for distribution to parties in support actions these forms and informational materials which describe the procedures and remedies set forth in this section and Section 20-7-1316.
(I)(1) If a payor wilfully fails to withhold or pay over income pursuant to a notice to withhold, the court upon notice and hearing may enter judgment and direct the issuance of an execution against the payor for the total amount that the payor wilfully failed to withhold. A payor who wilfully refuses to hire or who discharges or otherwise penalizes an obligor as prohibited by subsection (F)(9) or who fails to notify the clerk of the availability of health insurance is subject to a civil fine not to exceed five hundred dollars which may be imposed by the court in its discretion.
(2) If an obligor, obligee, or the Department of Social Services wilfully initiates a false proceeding under this section or wilfully fails to comply with the requirements of this section, punishment for contempt may be imposed.
(J) The rights, remedies, duties, and penalties created by this section are in addition to any other rights, remedies, duties, and penalties otherwise provided by law.
(K) The Office of Court Administration after consultation with the Department of Social Services is authorized to promulgate those regulations necessary to implement this section.
(L) By January 1, 1996, the Child Support Enforcement Division of the Department of Social Services shall create and develop an Employer New Hire Reporting program. The Employer New Hire Reporting program shall provide a means for employers to voluntarily assist in the state's efforts to locate absent parents who owe child support and collect child support from those parents by reporting information concerning newly hired and rehired employees directly to the division. The following provisions apply to the Employer New Hire Reporting program:
(1) An employer doing business in this State may participate in the Employer New Hire Reporting program by reporting to the Child Support Enforcement Division:
(a) the hiring of a person who resides or works in this State to whom the employer anticipates paying earnings; or
(b) the rehiring or return to work of an employee who was laid off, furloughed, separated, granted leave without pay, or terminated from employment.
(2) The Employer New Hire Reporting program applies to a person who is expected to:
(a) be employed for more than one month's duration;
(b) be paid for more than three hundred fifty hours during a continuous six-month period; or
(c) have gross earnings of more than three hundred dollars in each month of employment.
(3) An employer who voluntarily reports under item (1) shall submit monthly reports regarding each hiring, rehiring, or return to work of an employee during the preceding month. The report must contain:
(a) the employee's name, address, social security number, date of birth, and salary information; and
(b) the employer's name, address, and employer identification number.
(4) Employers reporting to the Employer New Hire Reporting program shall provide information to the Child Support Enforcement Division by:
(a) sending a copy of the new employee's W-4 form;
(b) completing a form supplied by the Child Support Enforcement Division; or
(c) any other means authorized by the Child Support Enforcement Division for conveying the required information, including electronic transmission or magnetic tapes in compatible formats.
(5) An employer is authorized by this section to disclose the information described in item (3) and is not liable to the employee for the disclosure or subsequent use by the Child Support Enforcement Division of the information.
(6) Information received by the South Carolina Employment Security Commission from employers which includes information contained in the reports provided for in this section shall transmit this information to the Department of Social Services within fifteen working days after the end of each quarter.
Information received by the South Carolina Employment Security Commission received from employers which includes information contained in the reports provided for in this section shall transmit this information to the Department of Social Services within fifteen working days after the end of each quarter.
(M) The department shall establish and operate a centralized system for the collection and disbursement of funds received from wage withholding under the Child Support Enforcement program. Wage withholding subject to this provision shall include:
(1) all wage withholding cases being enforced by the Child Support Enforcement Division;
(2) all cases not being enforced by the Child Support Enforcement Division in which the support order was initially issued in the State on or after January 1, 1994, and in which the income of the noncustodial parent is subject to withholding.
Child support amounts collected through the centralized wage withholding system are subject to the three percent court cost pursuant to Section 20-7-1440(C), with disposition of all these fees made in accordance with Section 14-1-205. Employers shall make payment of the amount withheld to the centralized system within seven working days of the date income is withheld. The department shall, in compliance with federal requirements, disburse funds received from employers to the appropriate county clerk of court for disbursement to the custodial parent."
SECTION 14. Section 20-7-1440(C) of the 1976 Code, as last amended by Act 393 of 1996, is further amended to read:
"(C) In actions for support for the spouse or dependent children, when paid through the court or through a centralized wage withholding system operated by the Department of Social Services and not directly, the court shall assess costs against the party required to pay the support in the amount of three percent of the support paid, which costs must be in addition to the support money paid."
SECTION 15. Section 43-5-585(A) of the 1976 Code , as last amended by Act 452 of 1996, is further amended to read:
"(A) The department shall provide consumer credit reporting agencies an automated monthly report of obligors in Title IV-D cases who have an arrearage in an amount equal to two months' support obligation of one thousand dollars or greater."
SECTION 16. Section 43-5-595(A) of the 1976 Code is amended to read:
"(A) Pursuant to Section 43-5-590(d), the department shall attempt to locate individuals for the purposes of establishing paternity or establishing, modifying, or enforcing a child support obligation. Notwithstanding any other provision of law making this information confidential, the following entities in the State shall provide promptly to the department, its designee, or a federally-approved child support agency of another state, the following information, upon request by the department or other agency for the purpose of establishing paternity or establishing, modifying, or enforcing a support obligation:
(1) All entities in the State including, but not limited to, for-profit, nonprofit and governmental employers, and labor organizations shall provide the full name, social security number, or the alien identification number assigned to a resident alien who does not have a social security number, date of birth, home address, wages or salary, existing or available medical, hospital, and dental insurance coverage, and number of dependents listed for tax purposes on all employees, contractors, and members of labor organizations.
(2) All utility companies, including wire and nonwire telecommunication companies, cable television companies, and financial institutions shall provide the full name, social security number, or the alien identification number assigned to a resident alien who does not have a social security number, date of birth, home address, telephone number, account numbers, and other identifying data, including information on assets and liabilities, on all persons who maintain an account with that entity. For purposes of this item, a financial institution is defined as a federal, state, commercial, or savings bank, savings and loan association, cooperative bank, federal, or state chartered credit union, benefit association, insurance company, safe deposit company, money market mutual fund, or investment company doing business in this State.
(3) A state or local agency of this State shall provide access to information contained in these records:
(a) vital statistics;
(b) state and local tax and revenue records;
(c) records concerning real and titled property;
(d) records of occupational and professional licenses;
(e) records concerning the ownership and control of corporations, partnerships, and other business entities;
(f) employment security records;
(g) records of motor vehicle departments; and
(h) corrections records.
A state or local agency, board, or commission which provides this information to the department may not charge the department a fee for providing the information; however, a commission that receives federal grants, the use of which are restricted, may charge a fee for providing the information."
SECTION 17. Section 43-5-596(A) and (B) of the 1976 Code, as added by Act 71 of 1997, is amended to read:
"(A) In the manner and form prescribed by the Child Support Enforcement Division, a financial institution, as defined in Section 43-5-595(A)(2), on a quarterly basis, shall provide the division or its designee information on account holders for use in the establishment, enforcement, and collection of child support obligations including, but not limited to:
(1) full name;
(2) social security number or taxpayer identification number, or the alien identification number assigned to a resident alien who does not have a social security number;
(3) record address;
(4) account number(s); and
(5) information on assets and liabilities.
(B) Utilizing automated data exchanges to the maximum extent feasible, a financial institution shall provide for each calendar quarter the name, address, social security number, or the alien identification number assigned to a resident alien who does not have a social security number, and other identifying information for each noncustodial parent who maintains an account at the institution and who owes past-due support, as identified by the division by name and social security number, or the alien identification number assigned to a resident alien who does not have a social security number."
SECTION 18. Section 43-5-598 of the 1976 Code, as last amended by Act 133 of 1997, is further amended to read:
"Section 43-5-598. (A) As used in this section:
(1) 'Business day' means a day on which state offices are open for regular business.
(2) 'Date of hire' means the first day the employee works for which the employee is entitled to compensation from the payor of income.
(3) 'Department' means the Department of Social Services, or its designee.
(4) 'Employer' includes a governmental entity and labor organization and means a person doing business in this State for whom an individual performs a service, of whatever nature, as the employee of the person and except that:
(a) if the person for whom the individual performs services does not have control of the payment of wages for the services, the term 'employer' means the person having control of the payment of wages; and
(b) in the case of a person paying wages on behalf of a nonresident alien, individual, foreign partnership, or foreign corporation, not engaged in trade or business within the United States, the term 'employer' means that person.
(5) 'Labor organization' means an organization in which employees participate and which exists for the purpose, in whole or in part, of dealing with employers concerning grievances, labor disputes, wages, rates of pay, hours of employment, or conditions of work. Hiring halls, which refer individuals for jobs with employers, are 'labor organizations' to the extent that they exist pursuant to an agreement with an employer engaged primarily in the building and construction industry under Section 8(f)(3) of the National Labor Relations Act.
(6) 'New hire' includes an individual newly employed or an individual who has been rehired or has returned to work after being laid off, furloughed, separated, granted leave without pay, or terminated from employment.
(B) By October 1, 1998, the department shall establish a state directory of new hires which shall contain information supplied in accordance with subsection (C) by employers on each new hire.
(C) Beginning October 1, 1998, an employer who hires an employee who resides or works in this State shall report the hiring of the employee to the state directory of new hires within twenty calendar days of the hiring of the employee. However, in the case of an employer transmitting reports magnetically or electronically, these reports must be transmitted semi-monthly, if necessary, not less than twelve nor more than sixteen days apart. The report submitted shall contain:
(1) the employer's name, address, and federal identification number assigned to the employer under Section 6109 of the Internal Revenue Code of 1986; and
(2) the employee's name, address, and social security number.
(D) For purposes of this section, an employer must not report information on an employee of a federal or state agency performing intelligence or counterintelligence functions if the head of the agency has determined that reporting pursuant to this section with respect to the employee could endanger the safety of the employee or compromise an ongoing investigation or intelligence mission.
(E) An employer that has employees who are employed in two or more states and that transmits reports magnetically or electronically may comply with subsection (C) by designating one state in which the employer has employees to which the employer will transmit the report required by subsection (C) and transmitting the report to that state. An employer that transmits reports pursuant to this subsection shall notify the Secretary of the United States Department of Health and Human Services in writing as to which state the employer designates for the purpose of sending reports.
(F) Each report required by subsection (C) must be made on a W-4 form or, at the option of the employer, an equivalent form and may be transmitted by first-class mail, facsimile, magnetically, or electronically. Magnetic and electronic submissions must be in a format prescribed by the department.
(G) If an employer fails to report the hiring of an employee pursuant to this section, the employer is subject to a civil penalty of no more than:
(1) twenty-five dollars for the second offense and every offense thereafter unless the employer can demonstrate good cause for not reporting the hiring; or
(2) five hundred dollars for each and every offense, if the failure is the result of a conspiracy between the employer and the employee not to supply the required report or to supply a false or incomplete report. Fines imposed pursuant to this subsection must be enforced as provided for in Section 20-7-420(43) and distributed according to Section 20-7-856.
(H) Information must be entered into the database maintained by the state directory of new hires within five business days of receipt from an employer pursuant to subsection (C).
(I) No later than May 1, 1998, the department shall conduct automated comparisons of the social security numbers reported by employers pursuant to subsection (C) and the social security numbers appearing in the records of the State Case Registry created pursuant to Section 43-5-610 for cases being enforced under the federally-approved child support program administered by the department.
(J) When an information comparison conducted under paragraph (I) reveals a match with respect to the social security number of an individual in the records of the State Case Registry, the state directory of new hires shall provide the department with the information reported by the employer pursuant to subsection (C).
(K) Within two business days after the date information regarding a newly hired employee is entered into the state directory of new hires, the department shall transmit a notice to the employer of the employee directing the employer to withhold from the income of the employee an amount equal to the monthly, or other periodic, child support obligation, including any past-due child support obligation, of the employee, unless the employee's income is not subject to withholding pursuant to Section 20-7-1315.
(L) Within three business days after the date information regarding a newly hired employee is entered into the state directory of new hires, the state directory of new hires shall furnish the information to the national directory of new hires.
(M) The state directory of new hires shall include reports received from the Employment Security Commission pursuant to Section 43-5-620. The state directory of new hires shall furnish these reports, on a quarterly basis, to the national directory of new hires by the dates, in the format, and containing the information the Secretary of the United States Department of Health and Human Services specifies in regulations.
(N) Information maintained in the state directory of new hires and national directory of new hires may be utilized for these purposes:
(1) The department shall use information received pursuant to subsection (I) to locate individuals for purposes of establishing paternity and establishing, modifying, and enforcing child support obligations and may disclose this information to a public or private agency that is under contract with the department to carry out these purposes.
(2) The department shall have access to information reported by employers pursuant to subsection (C) for purposes of verifying eligibility for these state administered programs:
(a) Temporary Assistance for Needy Families;
(b) Medicaid under Title XIX of the Social Security Act;
(c) food stamps;
(d) unemployment compensation benefits; and
(e) any state program under a plan approved under Title I, X, XIV, or XVI of the Social Security Act.
(3) The Employment Security Commission shall have access to information reported by employers pursuant to subsection (C) for purposes of administering the employment security program.
(4) The Workers' Compensation Commission or its designee shall have access to information reported by employers pursuant to subsection (C) for purposes of administering the workers' compensation program.
(O) An employer who in good faith discloses information pursuant to this section is not subject to civil or criminal liability on account of the disclosure.
(P) This section remains in effect until the federal mandate requiring a mandatory new hire reporting program is repealed."
SECTION 19. Section 44-7-77 of the 1976 Code, as last amended by Act 71 of 1997, is further amended to read:
"Section 44-7-77. The Department of Health and Environmental Control and the State Department of Social Services, in conjunction with the South Carolina Hospital Association, shall develop and implement a program to promote obtaining voluntary acknowledgments of paternity as soon after birth as possible and where possible before the release of the newborn from the hospital. A voluntary acknowledgment including those obtained through an in-hospital program shall contain the requirements of Section 20-7-956(A)(4) and the social security number, or the alien identification number assigned to a resident alien who does not have a social security number, of both parents, and must be signed by both parents. The signatures must be notarized. As part of its in-hospital voluntary acknowledgment of paternity program, a birthing hospital as part of the birth registration process, shall collect, where ascertainable, information which is or may be necessary for the establishment of the paternity of the child and for the establishment of child support. The information to be collected on the father or on the putative father if paternity has not been established includes, but is not limited to, the name of the father, his date of birth, home address, social security number, or the alien identification number assigned to a resident alien who does not have a social security number, and employer's name, and additionally for the putative father, the names and addresses of the putative father's parents."
SECTION 20. Section 44-63-75 of the 1976 Code, as last amended by Act 71 of 1997, is further amended to read:
"Section 44-63-75. (A) Social security numbers, or the alien identification numbers assigned to resident aliens who do not have social security numbers, must be included in the forms prescribed by the state registrar for:
(1) the recordation of birth, death, and divorce;
(2) the application of marriage.
(B) Social security numbers, or the alien identification numbers assigned to resident aliens who do not have social security numbers, must be recorded on birth and death certificates."
SECTION 21. If a provision of this act or the application of a provision of this act to a person or circumstance is held to be invalid, the invalidity does not affect other provisions or applications of this act which can be given effect without the invalid provision or application, and to this end the provisions of this act are severable.
Section 22. The Department of Social Services shall establish and operate the centralized system, as required by Section 20-7-1315 (M) of the 1976 Code, as contained in Section 13, for the collection and disbursement of wage withholding child support funds from funds appropriated to the Department of Child Support Enforcement operating expenses./
Section 23. This act takes effect upon approval by the Governor.
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