SECTION 1. Section 15-5-16.2 of the General Laws in Chapter 15-5 entitled "Divorce and Separation" is hereby amended to read as follows:

15-5-16.2. Child support. -- (a) In a proceeding for divorce, divorce from bed and board, a miscellaneous petition without the filing of divorce proceedings, or child support, the court shall order either or both parents owing a duty of support to a child to pay an amount based upon a formula and guidelines adopted by an administrative order of the family court. If, after calculating support based upon court established formula and guidelines, the court, in its discretion, finds the order would be inequitable to the child or either parent, the court shall make findings of fact and shall order either or both parents owing a duty of support to pay an amount reasonable or necessary for the child's support after considering all relevant factors including, but not limited to:

(1) The financial resources of the child;

(2) The financial resources of the custodial parent;

(3) The standard of living the child would have enjoyed had the marriage not been dissolved;

(4) The physical and emotional condition of the child and his or her educational needs; and

(5) The financial resources and needs of the non-custodial parent.

(b) The court may, if in its discretion it deems it necessary or advisable, order child support and education costs for children attending high school at the time of their eighteenth (18th) birthday and for ninety (90) days after graduation, but in no case beyond their nineteenth (19th) birthday. In addition, the court may order child support to continue, in the case of a child with a severe physical or mental impairment, until the twenty-first (21st) birthday of the child.

(c) The court may, if in its discretion it deems it necessary or advisable, appoint an attorney or a guardian ad litem to represent the interest of a minor or dependent child with respect to his or her support, custody, and visitation. The court shall enter an order for costs, fees, and disbursements in favor of the child's attorney. The order shall be made against either or both parents. After a decree for support has been entered, the court may from time to time upon the petition of either party, review and alter its decree relative to the amount of support and the payment of it, and may make any decree relative to support which it might have made in the original suit. The decree may be made retroactive in the court's discretion only to the date that notice of a petition to modify was given to the adverse party if the court finds that a substantial change in circumstances has occurred; provided, the court sets forth in its decision the specific findings of fact which show a substantial change in circumstances and upon which findings of facts the court has decided to make the decree retroactive.

(d) (1) In a proceeding to enforce a child support order, or a spousal support order for a custodial parent having custody of a minor child, the court or its magistrate may assign to the obligee any tangible personal property of the obligor that will be sufficient to satisfy the child or spousal support arrearage owed. The court or its magistrate, after a hearing, shall establish the amount of the child or spousal support arrearage, and the nature and value of the tangible personal property. To effect the assignment, the court or its magistrate may order the obligor to execute and deliver the documents of title which may be necessary to complete the transfer of title to the property, and may order the obligor to deliver possession of the property to the obligee. Whenever the obligor fails to comply with the order assigning the property, the order of assignment shall be regarded as a judgment vesting title to the property in the obligor as fully and completely as if the obligor had executed and delivered the documents of title.

(2) Any order for child support issued by the family court shall contain a provision requiring either or both parents owing a duty of support to a child to obtain health insurance coverage for the child when coverage is available to the parent or parents through their employment without cost or at a reasonable cost. "Reasonable cost" shall be defined in accordance with guidelines adopted by administrative order of the family court in conjunction with the child support guidelines. Any existing child support orders may be modified in accordance with this subsection unless the court makes specific written findings of fact that take into consideration the best interests of the child and conclude that a child support order or medical order would be unjust or inappropriate in a particular case. In addition, the national medical support notice shall be issued with respect to all orders issued, enforced or modified on or after October 1, 2002 in accordance with chapter 15-29 of the general laws. The notice shall inform the employer of provisions in the child support order, for health care coverage for the child, and contain instructions on how to implement this coverage. In lieu of the court ordering the non- custodial parent to obtain or maintain health care coverage for the child, the court may order the non-custodial parent to contribute a weekly cash amount towards the medical premium for health care coverage paid by the state of Rhode Island and/or the custodial parent. The method to determine a reasonable weekly amount shall be addressed in the family court administrative order pertaining to the child support guidelines.

(e) In a proceeding to establish support, the court in its discretion may, after opportunity for hearing, issue a temporary order for child support payable into the registry of the court and to be held pending entry of judgment. In the event of a final adjudication requiring no payment or payments in an amount less than those payments which have been made pursuant to a temporary order under this section, the defendant shall be entitled to a refund of all or a portion of the amounts so paid.

(f) In any proceeding to establish support, or in any case in which an obligor owes past due support, for a child or children receiving public assistance pursuant to chapter 5.1 of title 40, the court or its magistrate, upon a finding that an able bodied absent parent obligor is unemployed, underemployed or otherwise lacks sufficient income or resources from which to make payment of support equal to the public assistance payment for the child or children, or is unable to pay the arrearages in accordance with a payment plan, may order that parent to perform unpaid community service for at least twenty (20) hours per week through community service placements arranged and supervised by the department of human services and/or the division of taxation within the department of administration or to participate in such work activities as the court deems appropriate. The performance of community service shall not be a basis for retroactive suspension of arrears due and owing.

(g) (1) In any proceeding to establish support for a minor child whose adjudicated parent is a minor (minor-parent), the court or its magistrate may order a grandparent of the minor child to reimburse the department of human services in an amount not to exceed the total amount of cash assistance benefits paid to or for the minor child pursuant to chapter 5.1 of title 40 until the minor-parent reaches the age of eighteen (18), less any payment made to the department by the minor parent.

(2) It is declared that the obligation of reimbursement for the minor child shall be the joint and several responsibility of the minor parent and the grandparent(s) until the minor parent reaches the age of eighteen (18) and provided, that each joint obligor shall have a right of contribution against each joint obligor, which right is enforceable by an action in the family court.

(h) (1) All support orders established or modified in the state on or after October 1, 1998, shall be recorded with the Rhode Island family court degrees department of administration, division of taxation child support computer enforcement system which maintains the official registry of support orders entered from then on in accordance with applicable administrative orders issued by the Rhode Island family court. The support order shall be recorded whether or not services are being provided under the IV-D state plan.

(2) The obligee to a paternity or child support proceeding shall be required to file with the family court, upon the entry of the order, the appropriate form as provided by family court, which includes the full name of the parties, residential and mailing address, telephone number, drivers license number, social security number and the name, address and telephone number of the employer. The form shall also include the full order amount and date and amount of arrearages if any, the name of the child(ren), their date of birth, address and social security number and any other information as required by administrative order.

(3) Thereafter, each party is required to file an amended form whenever any of the information contained on the original form has been changed in any way, within ten (10) days of the change. The information shall be entered in the child support enforcement computer system within five (5) business days of receipt of the amended form.

(i) In any subsequent child support enforcement action between the parties, upon sufficient showing that diligent effort has been made to ascertain the location of a party, the court may deem state due process requirements for notice and service of process to be met with respect to the party, upon service by first class mail or, where appropriate, by service as specified in the Rhode Island rules of procedure for domestic relations for the Family Court of Rhode Island, of written notice to the most recent residential or employer address of record.

[See section 12-1-15 of the General Laws.]

SECTION 2. Section 15-5-16.2.5 of the General Laws in Chapter 15-5 entitled "Divorce and Separation" is hereby repealed.

15-5-16.2.5. Notification to obligor's employer of existence of order for health care insurance coverage. -- (a) Whenever the department of human services, and/or the department of administration, division of taxation, on its own information or on account of a claim by an obligee, determines that an obligor parent has failed to comply with a judgment or order for health care insurance coverage issued pursuant to section 15-5-16.2, and the insurance is available to the obligor through his or her employer at no cost or at reasonable cost, the department shall send notice of the judgment or order to the obligor's employer. The judgment or order shall operate to enroll the minor child or children as fully and completely as if the obligor had executed a document authorizing the enrollment, and upon receipt of notice of the judgment or order from the department, the employer or provider of health care insurance shall, within thirty (30) days, and subject to its contract and consistent with the support order, enroll the child or children whether or not the employee has signed an enrollment application. In the event that the employer's benefit plan provides options as to health care plans or coverages, the employer shall choose the least expensive option available to the employee.

(b) In the event the employee does not have health care insurance coverage available, the employer shall, within thirty (30) days, notify the department in writing of that fact.

(c) The failure of the employer to enroll the minor child or children in the health care plan, as designated in this section, or, to notify the department that health care coverage is not available, within thirty (30) days, shall be punishable by a civil penalty to be assessed by the family court or the department of administration, division of taxation in the amount of one hundred dollars ($100) for each failure, and the employer shall be required to provide this information.

SECTION 3. Title 15 of the General Laws entitled "Domestic Relations" is hereby amended by adding thereto the following chapter:

CHAPTER 29
MEDICAL SUPPORT

15-29-1. Purpose. -- The purpose of this chapter is to set forth procedures to enforce health care coverage provisions obtained pursuant to section 15-5-16.2(a)(2) through the use of the National Medical Support Notice, hereinafter referred to as the "medical notice." However, the medical notice is not to be issued when the court orders an individual to contribute a weekly cash amount towards the health care coverage provided by the custodial parent or state of Rhode Island.

15-29-2. Effective date. -- For purposes of this chapter, with respect to all medical orders issued enforced or modified in title IV-D Social Security Act cases on or after October 1, 2002, in accordance with section 15-5-16.2.5, the medical notice, which is a qualified medical support order, shall be issued to the employer in every case, by regular mail or electronic notice.

15-29-3. Duty of employer to respond to medical notices. -- (a) The medical notice shall instruct the employer into which health care plans the children shall be enrolled and include all identifying information of the child support case. The medical notice shall comply in all respects with federal requirements.

(b) The employer must respond, within twenty (20) business days after the date of the medical notice, or sooner, if reasonable, indicating: (1) that the employer does not maintain or contribute to plans providing dependant or family care coverage; or (2) that the employee is among a class of employees that are not eligible for family health care coverage under any group health plan maintained by the employee; or (3) that health care is not available because the employee is no longer employed; or (4) that state or federal withholding limitations and/or prioritization prevent the withholding from the employee's income of the amount required to obtain coverage.

(c) If family health care coverage is available, the employer is required to transfer the appropriate part of the medical notice to the plan administrator of each appropriate group health plan for which the children may be eligible.

(d) Upon notification from the plan administrator that the children are enrolled, the employer must either: (1) withhold from the employees income, any contributions required within the limitations outlined in section 15-29-4 and transfer the contribution to the plan administrator; or (2) complete the appropriate employee response portion of the notice and advise the child support agency that enrollment cannot be completed because of prioritization or limitations on additional withholding of income.

(e) If there is a waiting period for enrollment based upon number of hours worked or passage of time, the employer must notify the plan administrator when the condition is met.

15-29-4. Limitations on withholding. -- (a) The employer may not withhold more under the medical notice than the lesser of: (1) The amounts allowed by the Federal Consumer Credit Protection Act (15 U.S.C. section 1673(b)); or (2) The amounts allowed by the state of the employee's principal place of employment; or (3) The amount allowed for health care coverage premiums by the child support order. The federal limit applies to the aggregate disposal weekly earnings (ADWE). ADWE is the net income left after making mandatory deductions such as state, federal, local taxes; social security taxes; and Medicare taxes.

(b) Priority of Withholding. - If withholding is required for employee contributions to one or more health care coverage plans under the medical notice and for a support obligation under a separate notice, and available funds are insufficient for withholding for both cash and medical support contributions, the employer must withhold amounts for purposes of cash support and medical support contributions in accordance with the law, if any, of the state of the employee's principal place of employment requiring prioritization between cash and medical support. If the principal place of employment is Rhode Island, cash support shall be a priority followed by medical support contributions.

(c) Duration of withholding. - Coverage of a dependent child shall continue until the child is no longer a dependent. The continuation coverage provisions of the employee retirement income security act may entitle the child to continuation coverage under the plan. The employer must continue to withhold employee contributions and may not discontinue or eliminate health care coverage for the children unless:

(1) The employer is provided satisfactory evidence that:

(a) the court or administrative child support order referred to above is no longer in effect; or

(b) the children are or will be enrolled in comparable health care coverage which will take effect no longer than the effective date of dis-enrollment from the plan; or

(c) the employer eliminates family health care coverage for all of its employees.

15-29-5. Employer sanctions. -- An employer may be subject to a one hundred dollar ($100) fine or other penalties under the employee retirement income security act for discharging an employee from employment, refusing to employ, or taking disciplinary action against any employee because of medical child support withholding or for failing to withhold income or transmit such withheld amounts to the applicable plan(s) as the medical notice directs.

15-29-6. Notice of termination of employment. -- In any case in which the above employment terminates, the employer must promptly notify the division of taxation, child support enforcement agency of the termination within ten (10) days.

15-29-7. Employee liability for contribution to the plan. -- The employee is liable for any employee contributions that are required under the health care coverage plan for enrollment of the child(ren) and is subject to appropriate enforcement. The employee may contest the withholding under the medical notice based upon a mistake of fact. Should an employee contest the withholding under the medical notice, the employer must nevertheless proceed to comply with the employer responsibilities in the medical notice until notified by the division of taxation, child support enforcement or other issuing agency to discontinue withholding. To contest the withholding, the employee should contact the division of taxation, child support enforcement or other issuing agency at the address and phone number listed on the medical notice form.

15-29-8. Plan administrator obligations regarding enrollment. -- (a)(1) The medical notice shall be forwarded by the employer to the plan administrator. The plan administrator is obligated to provide health care coverage of the child(ren) under the group health plan described in the medical notice within forty (40) business days of the date of the notice, or sooner if reasonable.

(2) The plan administrator must complete the plan administrator response and send it to the issuing agency.

(3) If there is health care coverage available for the child(ren), the plan administrator shall notify the non-custodial parent of the coverage available and the effective date of the coverage and complete any forms documents or information necessary to effectuate and submit claims for such coverage.

(4) If there is more than one option available for health care coverage, the plan administrator must provide a detailed summary plan description that described all available coverages, including a default option coverage plan. The issuing child support agency must, in conjunction with the custodial parent, select one (1) of the available options within twenty (20) days, or the child(ren) will be enrolled in a default plan.

(5) If there has been no response from the issuing agency as to which option is selected, the plan administrator shall enroll the child(ren) in the default option coverage plan.

(b) The plan administrator shall notify the issuing agency if there is a waiting period for the participant. Upon expiration of the required waiting period for enrollment, the plan administrator shall enroll the child(ren) in the health coverage plan.

(c) If the plan administrator determines the medical notice does not constitute a qualified medical child support order, the reasons must be specified in the response.

15-29-9. Plan administrator - Unlawful refusal to enroll. -- Enrollment of a child may not be denied for any of the following reasons: (1) the child(ren) was born out of wedlock; (2) the child is not claimed as a dependant on the participant's federal income tax return; (3) the child does not reside with the participant or in the plan's service area; or (4) the child is receiving benefits or is eligible to receive benefits under a state's medical plan. If the health care coverage plan requires that the participant must be currently enrolled, the plan administrator must enroll both the participant and the child(ren). All enrollments are to be made without regard to open season restrictions.

15-29-10. Payment of claims. -- The following individuals or entities are eligible to file claims under the health care coverage plan: a child covered by the medical order; the child's custodial parent or legal guardian; the provider of services to the child(ren); or a state agency to which the child(ren) or parents rights have been assigned. The plan administrator shall make payment for covered benefits or reimbursement directly to such party.

SECTION 4. This act shall take effect on October 1, 2002.