SUPPORT PAYMENTS: ELECT. TRANSFER - S.B. 466 (S-1): FLOOR ANALYSIS

Senate Bill 466 (Substitute S-1 as reported)

Sponsor: Senator Michael J. Bouchard

Committee: Families, Mental Health and Human Services

CONTENT

The bill would amend the Friend of the Court (FOC) Act to require that, in receiving and disbursing support payments, the FOC use electronic funds transfer to the fullest extent possible, unless the FOC determined that use of electronic funds transfer would not be cost-effective in specific cases. The FOC would have to report annually to the Legislature and the Family Independence Agency on the number of cases for which exceptions were made.

The Act specifies that, unless otherwise provided in the order or judgment, after a support order is entered in a domestic relations matter the FOC must receive all payments of support orders and service fees; record, at least once a month, support payments due, paid, and past due; and disburse all support payments to the recipient of support within 14 days after receiving payment.

MCL 552.509 - Legislative Analyst: P. Affholter

FISCAL IMPACT

The bill would have no significant fiscal impact, as electronic means to receive and disburse support payments are currently being used to the greatest extent possible by many FOCs. In addition, the implementation of the Federally mandated child support enforcement system will allow all FOCs eventually to have this capability.

Date Completed: 5-13-97 - Fiscal Analyst: M. Ortiz

floor\sb466

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.