Sponsored by:
Assemblywoman VICTORIA A. FLYNN
District 13 (Monmouth)
Assemblyman GERRY SCHARFENBERGER
District 13 (Monmouth)
SYNOPSIS
Subjects unclaimed property to judgment debtor search; prioritizes unpaid child support judgment.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning unclaimed property and supplementing Title 46 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. Prior to the administrator paying over or delivering to a claimant the property or the amount the administrator received or the net proceeds if it has been sold by the administrator, the Director of the Division of Revenue in conjunction with the Department of Human Services Title IV-D program administrator shall cause a judgment search to be made to determine if the claimant is a child support judgment debtor.
b. If the claimant is found to be a child support judgment debtor, the Director of the Division of Revenue in the Department of the Treasury shall notify the claimant of the finding and shall, upon receipt of notice of lien or levy from the Department of Human Services, forthwith surrender the property or, pursuant to subsection d. of this section, retain the property until such time as demand can be made by the Department of Human Services.
c. The administrator shall not be liable under any federal or State law, notwithstanding any other provision of federal or State law to the contrary, to any person for any disclosure of information to the Department of Human Services for the purpose of enforcing a child support obligation of an individual, or for encumbering, holding, refusing to release, or surrendering any property held by the administrator, in response to a notice of lien or levy issued by the Department of Human Services, or for any other action taken in good faith to comply with the requirement of P.L. c. , (C ) (pending before the Legislature as this bill).
d. The Department of Human Services shall notify the administrator of the intention to obtain a lien or levy against the property or the amount the administrator received or the net proceeds if it has been sold by the administrator, and demand (1) the surrender of such property held by the administrator; (2) depending upon the nature or feasibility of surrender, the retention of the property until such time as demand can be made. This claim shall have priority over all other levies and garnishments against the net proceeds and stay the distribution of net proceeds to the claimant until the child support judgment is satisfied.
2. This act shall take effect immediately.
STATEMENT
This bill requires a search be made to determine if a claimant to unclaimed property owes child support. Pursuant to the "Uniform Unclaimed Property Act," N.J.S.A.46:30B-1 et seq., the Treasurer is designated the authority to obtain custody over and administer unclaimed property in the State. This law requires the administrator to obtain custody of abandoned property in this State and retain custody until ownership in the property is established by a claimant.
This bill requires that prior to the administrator paying over or delivering to a claimant the property or the amount the administrator received, or the net proceeds if it has been sold by the administrator, the State Treasurer, in conjunction with the Department of Human Services Title IV-D program administrator is required to conduct a judgment search to determine if the claimant is a child support judgment debtor. If the claimant is found to be a child support judgment debtor, the Department of the Treasury is to notify the claimant, and, upon receipt of notice of lien or levy from the Department of Human Services for the property, is required to surrender the property, or retain the property until demand can be made.