****
68th Legislature 2023 HB 500.1
1 HOUSE BILL NO. 500
2 INTRODUCED BY K. SEEKINS-CROWE
3
4 A BILL FOR AN ACT ENTITLED: “AN ACT ELIMINATING YOUTH COURT FEES, COSTS, CERTAIN FINES,
5 AND CERTAIN FINANCIAL OBLIGATIONS; CREATING REPORTING REQUIREMENTS TO THE CRIMINAL
6 JUSTICE OVERSIGHT COUNCIL; AMENDING SECTIONS 40-4-204, 40-5-303, 40-5-601, 40-5-701, 41-5-103,
7 41-5-132, 41-5-1304, 41-5-1412, 41-5-1501, 41-5-1503, 41-5-1511, 41-5-1512, 41-5-1513, AND 41-5-1703,
8 MCA; AND REPEALING SECTIONS 41-5-112 AND 41-5-1525, MCA.”
9
10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
11
12 NEW SECTION. Section 1. Certain costs, obligations, and fees prohibited -- report. (1) (a) A
13 court, agency, assessment officer, or juvenile probation officer may not order a youth, the youth's parents, or
14 the youth's guardian to pay:
15 (i) a contribution, including but not limited to a contribution for any part of the costs for
16 adjudication, disposition, attorney fees for costs of prosecuting or defending the youth, costs of detention,
17 supervision, care, custody, or necessary medical, dental, or health treatment; or
18 (ii) fines, except in the cases described in 41-5-203(2).
19 (b) A city, town, or county may not impose a legal financial obligation, fee, fine, or cost associated
20 with a juvenile offense unless there is express statutory authority for the legal financial obligation, fee, fine, or
21 cost.
22 (2) (a) On [the effective date of this act], all outstanding fees or costs owed by a youth, the youth's
23 parents, or the youth's guardian are void and uncollectable, and any order requiring the payment of fees or
24 costs is unenforceable.
25 (b) Within 6 months of [the effective date of this act], the office of court administrator shall report to
26 the criminal justice oversight council established in 53-1-216 the number of orders vacated or partially vacated
27 in each judicial district pursuant to this section. The report must include the amount of the balances vacated in
28 each judicial district.
-1- Authorized Print Version – HB 500
****
68th Legislature 2023 HB 500.1
1
2 Section 2. Section 40-4-204, MCA, is amended to read:
3 "40-4-204. Child support -- orders to address health insurance -- withholding of child support.
4 (1) In a proceeding for dissolution of marriage, legal separation, maintenance, or child support, the court shall
5 order either or both parents owing a duty of support to a child to pay an amount reasonable or necessary for the
6 child's support, without regard to marital misconduct.
7 (2) The court shall consider all relevant factors, including:
8 (a) the financial resources of the child;
9 (b) the financial resources of the parents;
10 (c) the standard of living that the child would have enjoyed had the marriage not been dissolved;
11 (d) the physical and emotional condition of the child and the child's educational and medical
12 needs;
13 (e) the age of the child;
14 (f) the cost of day care for the child;
15 (g) any parenting plan that is ordered or decided upon; and
16 (h) the needs of any person, other than the child, whom either parent is legally obligated to
17 support.
18 (3) (a) Whenever a court issues or modifies an order concerning child support, the court shall
19 determine the child support obligation by applying the standards in this section and the uniform child support
20 guidelines adopted by the department of public health and human services pursuant to 40-5-209. The
21 guidelines must be used in all cases, including cases in which the order is entered upon the default of a party
22 and those in which the parties have entered into an agreement regarding the support amount. A verified
23 representation of the defaulting parent's income, based on the best information available, may be used when a
24 parent fails to provide financial information for use in applying the guidelines. The amount determined under the
25 guidelines is presumed to be an adequate and reasonable support award, unless the court finds by clear and
26 convincing evidence that the application of the standards and guidelines is unjust to the child or to any of the
27 parties or that it is inappropriate in that particular case.
28 (b) If the court finds that the guideline amount is unjust or inappropriate in a particular case, it shall
-2- Authorized Print Version – HB 500
****
68th Legislature 2023 HB 500.1
1 state its reasons for that finding. Similar reasons must also be stated in a case in which the parties have agreed
2 to a support amount that varies from the guideline amount. Findings that rebut and vary the guideline amount
3 must include a statement of the amount of support that would have ordinarily been ordered under the
4 guidelines.
5 (c) If the court does not order a parent owing a duty of support to a child to pay any amount for the
6 child's support, the court shall state its reasons for not ordering child support.
7 (d) Child support obligations established under this section are subject to the registration and
8 processing provisions of Title 40, chapter 5, part 9.
9 (4) Each temporary or final district court judgment, decree, or order establishing a child support
10 obligation under this title and each modification of a final order for child support must include a medical support
11 order as provided for in Title 40, chapter 5, part 8.
12 (5) (a) Unless the court makes a written exception under 40-5-315 or 40-5-411 and the exception
13 is included in the support order, a support obligation established by judgment, decree, or order under this
14 section, whether temporary or final, and each modification of an existing support obligation under 40-4-208
15 must be enforced by immediate or delinquency income withholding, or both, under Title 40, chapter 5, part 3 or
16 4. A support order that omits the written exceptions provided in 40-5-315 or 40-5-411 or that provides for a
17 payment arrangement inconsistent with this section is nevertheless subject to withholding for the payment of
18 support without need for an amendment to the support order or for any further action by the court.
19 (b) If an obligor is exempt from immediate income withholding, the district court judgment or order
20 must include a warning statement that if the obligor is delinquent in the payment of support, the obligor's
21 income may be subject to income-withholding procedures under Title 40, chapter 5, part 3 or 4. Failure to
22 include a warning statement in a judgment or order does not preclude the use of withholding procedures.
23 (c) If a support order subject to income withholding is expressed in terms of a monthly obligation,
24 the order may be annualized and withheld on a weekly or biweekly basis, corresponding to the obligor's regular
25 pay period. When an order is annualized and withheld on a weekly or biweekly basis under this section, the
26 support withheld from the obligor may be retained by the obligee when it exceeds the obligor's monthly support
27 obligation if the excess support is a result of annualized withholding.
28 (d) If an obligor is exempted from paying support through income withholding, the support order
-3- Authorized Print Version – HB 500
****
68th Legislature 2023 HB 500.1
1 must include a requirement that whenever the case is receiving services under Title IV-D of the Social Security
2 Act, support payments must be paid through the department of public health and human services as provided in
3 40-5-909.
4 (6) (a) Each district court judgment, decree, or order that establishes paternity or establishes or
5 modifies a child support obligation must include a provision requiring the parties to promptly file with the court
6 and to update, as necessary, information on:
7 (i) the party's identity, residential and mailing addresses, telephone number, [social security
8 number,] and driver's license number;
9 (ii) the name, address, and telephone number of the party's employer; and
10 (iii) if the child is covered by a health or medical insurance plan, the name of the insurance carrier
11 or health benefit plan, the policy identification number, the names of the persons covered, and any other
12 pertinent information regarding coverage or, if the child is not covered, information as to the availability of
13 coverage for the child through the party's employer.
14 (b) The court shall keep the information provided under subsection (6)(a) confidential except that
15 the information may be provided to the department of public health and human services for use in administering
16 Title IV-D of the Social Security Act, to the parties, and to each party's counsel of record. The information
17 provided under subsection (6)(a) may be included on the case registry and vital statistics reporting form filed
18 with the court pursuant to 40-5-908(1).
19 (c) The order must also require that in any subsequent child support enforcement action, upon
20 sufficient showing that diligent effort has been made to ascertain the location of the party, the district court or
21 the department of public health and human services, if the department is providing services under Title IV-D of
22 the Social Security Act, may consider due process requirements for notice and service of process met with
23 respect to the party upon delivery of written notice by regular mail to the most recent address of the party or the
24 party's employer's address reported to the court.
25 (7) A judgment, decree, or order establishing a child support obligation under this part may be
26 modified or adjusted as provided in 40-4-208 or, if the department of public health and human services is
27 providing services under Title IV-D of the Social Security Act, may be modified or adjusted by the department
28 as provided for in 40-5-271 through 40-5-273, 40-5-277, and 40-5-278.
-4- Authorized Print Version – HB 500
****
68th Legislature 2023 HB 500.1
1 (8) (a) A district court judgment, decree, or order that establishes or modifies a child support
2 obligation must include a provision requiring the child support obligation to be paid, without need for further
3 court order:
4 (i) to the person with whom the child resides by legal order;
5 (ii) if the person with whom the child legally resides voluntarily or involuntarily relinquishes physical
6 care and control of the child to another person, organization, or agency, to the person, organization, or agency
7 to whom physical custody has been relinquished;
8 (iii) if any other person, organization, or agency is entitled by law, assignment, or similar reason to
9 receive or collect the child support obligation, to the person, organization, or agency having the right to receive
10 or collect the payment; or
11 (iv) to the court for the benefit of the minor child.
12 (b) When the department of public health and human services is providing services under Title IV-
13 D of the Social Security Act, payment of support must be made through the department for distribution to the
14 person, organization, or agency entitled to the payment.
15 (c) A judgment, decree, or order that omits the provision required by subsection (8)(a) is subject to
16 the requirements of subsection (8)(a) without need for an amendment to the judgment, decree, or order or for
17 any further action by the court.
18 (9) A judgment, decree, or order that establishes or modifies a child support obligation must
19 include a provision that if a parent or guardian is the obligee under a child support order and is obligated to pay
20 a contribution for the same child under 41-3-438, 41-5-1304, or 41-5-1512, the parent or guardian assigns and
21 transfers to the department of public health and human services all rights that the parent or guardian may have
22 to child support that are not otherwise assigned under 53-2-613.
23 (10) The court shall seal any qualified domestic relations order, as defined in section 414(p) of the
24 Internal Revenue Code, 26 U.S.C. 414(p), that is issued under this part except for access by the pension plan
25 administrator of the plan for which benefits are being distributed by the order, the child support enforcement
26 division, the parties, and each party's counsel of record. (Bracketed language terminates on occurrence of
27 contingency--sec. 1, Ch. 27, L. 1999.)"
28
-5- Authorized Print Version – HB 500
****
68th Legislature 2023 HB 500.1
1 Section 3. Section 40-5-303, MCA, is amended to read:
2 "40-5-303. Petition for income deduction -- who may initiate. (1) If an obligor is exempted from
3 immediate income withholding under 40-5-315 or is not otherwise subject to an income-withholding order, the
4 obligor's income may be withheld for the payment of child support if the obligor becomes delinquent in the
5 payment of support, a person or entity referred to in subsection (2) notifies the obligor that income withholding
6 will be initiated if the delinquent amount is not paid within 8 days of the date of the notice, and the obligor does
7 not pay the delinquent amount within that time. Notification that income withholding will be initiated if a
8 delinquency is not paid within 8 days of the date of the notice is not necessary if such a notice was given for a
9 prior delinquency and the prior delinquency in fact existed. This notice is different from the notice required by
10 40-5-305.
11 (2) Income withholding for the payment of child support may be initiated by:
12 (a) the person named as the recipient of the child support payments in the child support order;
13 (b) the child or the guardian of the child named in the child support order; or
14 (c) the department of public health and human services; or
15 (d) the state of Montana, including the department of corrections and respective county attorneys, for
16 the purpose of enforcing contribution orders under 41-5-1525. These contribution orders are considered to be
17 child support orders for purposes of enforcement under this chapter.
18 (3) (a) At the request of an initiating party who has determined that an obligor is delinquent, the
19 district court shall issue an order for income deductions for immediate service upon the obligor's payor or
20 payors. The order is limited to current support unless modified to include arrears as provided in 40-5-308.
21 (b) At the same time an income deduction order is issued, the requesting party shall notify the
22 obligor as provided in 40-5-305 that income deductions have been initiated.
23 (4) Deductions under this section for current support may be terminated only if:
24 (a) the district court determines after a hearing that the obligor was not delinquent when the
25 deduction order was issued;
26 (b) the obligation to pay support has terminated and all delinquencies are paid in full; or
27 (c) the department of public health and human services has superseded the deduction order under
28 authority of Title 40, chapter 5, part 4.
-6- Authorized Print Version – HB 500
****
68th Legislature 2023 HB 500.1
1 (5) As used in this part, the following definitions apply:
2 (a) "Employer" includes a payor.
3 (b) (i) "Income" means any form of periodic payment to a person, regardless of source, including
4 commissions, bonuses, workers' compensation, disability benefits, payments under a pension or retirement
5 program, interest and earnings, and wages.
6 (ii) Income does not include:
7 (A) an amount, other than creditor claims, required by law to be withheld, including federal, state,
8 and local taxes and social security; or
9 (B) an amount exempted from judgment, execution, or attachment by federal or state law.
10 (c) "Payor" means any entity that pays income to an obligor on a periodic basis and includes any
11 person, firm, corporation, association, employer, trustee, political subdivision, or state agency or an agent of
12 any one of them, subject to the jurisdiction of the courts of this state under Rule 4(b) of the Montana Rules of
13 Civil Pro