It is enacted by the General Assembly as follows:

SECTION 1. Sections 15-16-1, 15-16-5.1, 15-16-10 and 15-16-12 of the General Laws in Chapter 15-16 entitled "Income Withholding" are hereby amended to read as follows:

{ADD 15-16-1. Purpose. -- ADD} The purpose of this chapter is to enhance the enforcement of support obligations by providing a swift and effective procedure for the withholding of income derived in this state to enforce support orders issued in this state or other jurisdictions, and by providing a mechanism whereby income withholding, to enforce the support orders issued in this state, may be sought in other jurisdictions. This chapter shall be applicable {DEL only DEL} to {ADD support obligations established or enforceable in this state, including ADD} support obligations enforceable pursuant to the Rhode Island state plan for child and spousal support enforcement, as the plan may be adopted and amended by the Rhode Island department of human services in accordance with title IV, part D, section 454 of the federal Social Security Act (42 U.S.C. section 654) and as more fully defined in section 15-16-2 of this chapter. This chapter shall be construed liberally to effect this purpose.

{DEL 15-16-5.1. Immediate income withholding -- Support orders issued or modified on or after October 1, 1990. -- DEL} {ADD 15-16-5.1. Immediate income withholding -- Support orders issued or modified on or after January 1, 1994. -- ADD} (a) With respect to a support order issued {ADD , enforced, ADD} or modified on or after {DEL October 1, 1990, and which is being enforced under the state plan, DEL} {ADD January 1, 1994 ADD} the income of an obligor shall be subject to immediate income withholding under this chapter on the effective date of the order, regardless of whether support payments by such obligor are in arrears; provided that the income of the obligor shall not be subject to immediate income withholding (1) if a judge or master of the family court finds that there is good cause not to require immediate income withholding or (2) if the obligor and obligee (and the department in the case of an obligee subject to an assignment of support rights under {DEL section 4-6-29) [Repealed] DEL} {ADD section 40-6-9) ADD} enter into a written agreement or order which provides for an alternative arrangement for the timely payment of support due under the support order.

(b) The obligor shall be given advance notice, by way of the pleadings or otherwise, that his or her income is subject to immediate income withholding as provided in subsection (a) above, that the maximum amount of income to be withheld may not exceed the limit permitted under section 303(b) of the Consumer Credit Protection Act (15 U.S.C. 1673(b)), and that he or she may contest immediate income withholding, and assert any defenses, exceptions or exemptions to which he or she may be entitled, at a hearing before a judge or master of the family court.

(c) An immediate income withholding order issued under this section shall be filed by the department {ADD or the obligee ADD} with the clerk of the family court or, as appropriate, with the reciprocal office of the family court and shall be subject to the provisions of sections 15-16-9 through 15-16-13.

{ADD 15-16-10. Duties and liabilities of withholding agent. -- ADD} (a) An income withholding agent shall remit to the clerk of the family court {ADD , except as provided in subsection (i), ADD} all amounts withheld from the income of an obligor within ten (10) days of the date the income was paid or payable to the obligor, and the income withholding agent shall specify the date and amount of each withholding included in the remittance. The withholding agent may combine withheld amounts from two (2) or more obligors into a single payment, provided that the withholding agent separately identifies the individual obligors and the amount attributable to each obligor.

(b) An income withholding agent may deduct a fee of two dollars ($2.00) from the obligor's remaining income for each payment made pursuant to an income withholding order under this chapter.

(c) The income withholding agent must notify the department, in writing, of the termination of the obligor's employment within thirty (30) days of the termination. Notice shall include the last known address of the obligor and the name and address of the obligor's new employer, if known.

(d) Any withholding agent failing to comply with any of the requirements of this chapter may be punished by the family court or its master for civil contempt. The court or its master shall first afford the withholding agent a reasonable opportunity to purge itself of the contempt.

(e) Any withholding agent who shall fail or refuse to deliver income pursuant to an income withholding order issued under this chapter, when the withholding agent has had in its possession the income, shall be personally liable for the amount of the income which the withholding agent failed or refused to deliver, together with costs, interest, and reasonable attorney's fees.

(f) Any withholding agent who dismisses, demotes, disciplines, refuses to hire, or in any way penalizes an obligor on account of any income withholding order issued under this chapter shall be liable to the obligor for all damages, together with costs, interest thereon, and reasonable attorney's fees resulting from the action, and shall be subject to a fine not to exceed one hundred dollars ($100.00). The withholding agent shall be required to make full restitution to the aggrieved obligor including reinstatements and back pay.

(g) A withholding agent may be enjoined by a court of competent jurisdiction from continuing any action in violation of this chapter.

(h) Compliance by a withholding agent with an income withholding order issued under this chapter operates as a discharge of the withholding agent's liability to the obligor as to that portion of the obligor's income so affected.

{ADD (i) With respect to a support order which is not subject to enforcement under the state plan and which is not subject to an assignment of rights to the department of human services, an income withholding order may direct an income withholding agent to remit withheld amounts directly to the obligee, in lieu of remittance to the clerk of the family court, if the obligor and obligee agree to such alternative arrangement in a signed writing filed with the family court. ADD} {ADD 15-16-12. Allocation of amounts withheld -- Refunds -- Distribution. -- ADD} (a) In the event that there are two (2) or more income withholding orders against the same income of an obligor, the department shall allocate {ADD and distribute ADD} the amount remitted by the withholding agent between or among the separate {ADD income withholding ADD} orders giving priority to current support obligations {DEL in the chronological order in which the income withholding orders were issued, and shall then allocate any remaining amounts to support arrearages in the chronological order in which the income withholding orders were issued. DEL} {ADD as follows: ADD}

{ADD (1) Each obligee shall be allocated an amount in the proportion which each obligee's current support order under income withholding bears relative to the total of all amounts for current support under income withholding orders; and

(2) Any remaining withheld income shall be allocated to each obligee in an amount proportional to which each obligee's arrearage order under income withholding bears relative to the total of all amounts ordered to be paid on arrearages under income withholding orders. ADD}

(b) The department shall promptly refund to an obligor the amounts, if any, which may have been improperly withheld.

(c) The department shall promptly distribute amounts received under income withholding orders in accordance with section 457 of the federal Social Security Act (42 U.S.C. section 657).

SECTION 2. The provisions of section 15-5-24 and section 15-5-25 of the general laws shall not be applicable to support orders or judgments for support issued on or after July 1, 1994; provided, however, that an assignment of income pursuant to a support order or support judgment issued prior to July 1, 1994 shall be enforceable in accordance with the provisions of sections 15-5-24 and 15-5-26 of the general laws.

SECTION 3. This act shall take effect upon passage and shall apply to child support orders issued on or after January 1, 1994.