Establishes greater discretion in court concerning child support related license suspension and credit reporting.

S3341

SENATE, No. 3341

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 5, 2026

Sponsored by:

Senator� SHIRLEY K. TURNER

District 15 (Hunterdon and Mercer)

SYNOPSIS

���� Establishes greater discretion in court concerning
child support related license suspension and credit reporting.�

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
concerning child support enforcement and amending
various parts of statutory law.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� Section 3 of P.L.1996,
c.7 (C.2A:17-56.41) is amended to read as follows:

���� 3.��� a.� If
all
appropriate enforcement methods to collect child support arrearage have been
exhausted and
the child support arrearage equals or exceeds the amount of
child support payable for six months or court-ordered health care coverage for
the child is not provided for six months, or the obligor fails to respond to a
subpoena relating to a paternity or child support action
[
, or a child
support-related warrant exists,
]

and the obligor is found to possess a license in the State
[
and all
appropriate enforcement methods to collect the child support arrearage have
been exhausted
]
,
the Probation Division shall send a written notice to the obligor,
[
by certified
and regular mail, return receipt requested
]

in accordance with the Rules of Court
, at the obligor's last-known
address or place of business or employment, advising the obligor that the
obligor's license may be revoked or suspended unless, within 30 days of the
postmark date of the notice, the obligor pays the full amount of the child
support arrearage, or provides proof that health care coverage for the child
has been obtained, or responds to a subpoena, or makes a written request for a
court hearing to the Probation Division
, or reaches an agreement with the
Probation Division on a payment amount that is approved the Court including the
resumption of timely ongoing support payments
.�
[
If a child support- related
warrant for the obligor exists, the professional, occupational, recreational or
sporting license revocation or suspension shall be terminated if the obligor
pays the full amount of the child support arrearage, provides proof that health
care coverage for the child has been obtained as required by the court order,
or surrenders to the county sheriff or the Probation Division.
]

���� b.��� If the obligor fails to
take one of the actions in subsection a. of this section within 30 days of the
postmark date of the notice and there is proof that service on the obligor was
effective, the Probation Division
[
shall
]

may

file a certification with the court setting forth the obligor's non-compliance
with the support order and the obligor's failure to respond to the written
notice of the potential license suspension or revocation.� If, based on the
papers filed by the Probation Division, the court is satisfied that service on
the obligor was effective as set forth in this section, it shall without need
for further due process or hearing, enter a court order suspending or revoking
all licenses held by the obligor
for which they have been previously noticed
.�
Upon the entry of the order, the Probation Division shall forward a copy to the
obligor and all appropriate licensing authorities.

���� For the purposes of this
section, the court may deem procedural due process requirements for notice and
service of process to be met with respect to a party thereto upon delivery of
written notice to the most recent residential or employer address filed with
the Probation Division for that party.� If a party fails to respond to a notice
and no proof is available that the party received the notice, the Probation
Division shall document to the court that it has made a diligent effort to
locate the party by making inquiries that may include, but are not limited to:
the United States Postal Service, the
[
Division
of
]

New
Jersey
Motor Vehicles
[
in
the Department of Transportation
]

Commission
, the Division of Taxation in the Department of the Treasury
and the Departments of Labor and Corrections.� The Probation Division shall
provide
[
an
affidavit
]

a certification
to the court presenting such documentation of its
diligent effort, which certifies its inability to locate the party, before any
adverse action is taken based upon the party's failure to respond to the
notice.

���� c.���� If the obligor requests
a hearing, the Probation Division shall file a petition for a judicial hearing
in accordance with section 5 of P.L.1996, c.7 (C.2A:17-56.43).� The hearing
shall occur within 45 days of the obligor's request.� If, at or prior to the
hearing, the obligor pays the full amount of the child support arrearage or
provides health care coverage as ordered, or responds to the subpoena
[
or surrenders
to the county sheriff or the Probation Division
]

or reaches an agreement with
the Probation Division on a payment amount that is approved the Court including
the resumption of timely ongoing support payments
, the license revocation
process shall be terminated.� No license revocation action shall be initiated
if the Probation Division has received notice that the obligor has pending a
motion to modify the child support order if that motion was filed prior to the
date that the notice of the license suspension or revocation was sent by the
Probation Division.� The court shall consider the Probation Division's petition
to revoke or suspend a license in accordance with section 5 of P.L.1996, c.7
(C.2A:17-56.43).

(cf: P.L.2019, c.276, s.2)

���� 2.��� Section 5 of P.L.1996,
c.7 (C.2A:17-56.43) is amended to read as follows:

���� 5.��� The court
[
shall
]

may

suspend or revoke a license if it finds that: a. all appropriate enforcement
methods have been exhausted, b. the obligor is the holder of a license, c. the
requisite child support arrearage amount exists, health care coverage has not
been provided as ordered pursuant to section 3 of P.L.1996, c.7
(C.2A:17-56.41), or there has been no response to a subpoena, d. no motion to
modify the child support order, filed prior to the date that the notice of the
license suspension or revocation was sent by the Probation Division, is pending
before the court, and e. there is no equitable reason, such as involuntary
unemployment, disability, or compliance with a court-ordered plan for the
periodic payment of the child support arrearage amount, for the obligor's
non-compliance with the child support order.

���� If the court is satisfied that
these conditions exist, it
[
shall
]

may

first consider suspending or revoking a driver's license prior to a
professional
or recreational
license.� If the obligor fails to appear at
the hearing after being properly served with notice, the court
[
shall
]

may

order the suspension or revocation of all licenses held by the obligor.� In the
case of a driver's license, if the court finds that the license revocation or
suspension will result in a significant hardship to the obligor, to the
obligor's legal dependents
[
under
18 years of� age
]

living in the obligor's household, to the obligor's employees, or to persons,
businesses or entities to whom the obligor provides goods or services, the
court may allow the obligor to pay
[
25%
]

a lump sum
as determined by the court
of the past-due child support amount within
a
time frame determined by the court, but not to exceed

[
three
]

ten

working days of the hearing, establish a payment schedule to satisfy the
remainder of the arrearages within
[
one
year
]

a
time period as determined by the court, but not to exceed five years
, and
require that the obligor comply with any current child support obligation.� If
the obligor agrees to this arrangement, no suspension or revocation of any
licenses shall be ordered.� Compliance with the payment agreement shall be
monitored by the Probation Division.� If the obligor has good cause for not
complying with the payment agreement within the time permitted
by the court
,
the obligor shall immediately file a motion
or application
with the
court and
with notice to
the Probation Division requesting an extension
,
modification, or both an extension and modification
of the payment plan.�
The court may extend the payment plan if it is satisfied that the obligor has
made a good faith effort to comply with the plan and is unable to satisfy the
full amount of past-due support within the time permitted due to circumstances
beyond the obligor's control.�
[
In
no case shall a payment plan extend beyond the date the dependent child reaches
the age of 18.
]
�
If the obligor fails to comply with the court-ordered payment schedule, the
court
[
shall
]

may
,
upon receipt of a certification of non-compliance from the obligee or Probation
Division, and without further hearing, order the immediate revocation or
suspension of all licenses held by the obligor.� If required by existing law or
regulation, the court shall order that the obligor surrender the license to the
issuing authority within 30 days of the date of the order.

(cf: P.L.1998, c.1, s.29)

���� 3.��� Section 2 of P.L.1981,
c.417 (C.2A:17-56.8) is amended to read as follows:

���� 2.��� Every complaint, notice
or pleading for the entry or modification of a support order and every court
order which includes child support shall include a written notice to the
obligor stating that the child support provision of the order shall, and the
health care coverage provision may, as appropriate, be enforced by an income
withholding upon the current or future income due from the obligor's employer
or successor employers and upon the unemployment compensation benefits due the
obligor and against debts, income, trust funds, profits or income from any
other source due the obligor except as provided in section 3 of P.L.1981, c.417
(C.2A:17-56.9).� The written notice shall also state that the driver's license
and professional or occupational licenses, or recreational or sporting license
in accordance with P.L.1996, c.7 (C.2A:17-56.41 et seq.) held or applied for by
the obligor may be denied, suspended or revoked if: the child support arrearage
is equal to or exceeds the amount of child support payable for six months; the
obligor fails to provide health care coverage for the children as ordered by
the court for six months; or the obligor fails to respond to a subpoena
relating to a paternity or child support proceeding
[
; or a warrant for the obligor's
arrest has been issued by the court due to failure to pay child support as
ordered, failure to appear at a hearing to establish paternity or child
support, or failure to appear at a hearing to enforce a child support order and
said warrant remains outstanding
]
.�
The written notice shall also state that the amount of a child support order
and the provisions for health care coverage may be reviewed and updated when
there has been a change in circumstances or in accordance with section 5 of
P.L.1990, c.92 (C.2A:17-56.9a).

���� The court shall ensure that in
the case of each obligor against whom a support order is or has been issued or
modified, the obligor's income shall be withheld to comply with the order.� An
amount shall be withheld to pay the support obligation and it shall include an
amount to be applied toward liquidation of arrearages reduced to judgments,
payments for paternity testing procedures and provisions for health care
coverage when applicable.� These provisions shall also be applicable to all
orders issued on or before the effective date of P.L.1985, c.278 (C.2A:17-56.16
et seq.).

���� A support provision contained
in an order or judgment issued by the court shall be paid by income withholding
unless the order or judgment specifically provides for an alternative payment
arrangement to which the parties agree in writing or the obligor or obligee
demonstrates and the court finds good cause for establishing an alternative
arrangement.

(cf: P.L.1998, c.1, s.18)

���� 4.��� Section 6. of P.L.1996,
c.7 (C.2A:17-56.44) is amended to read as follows:

���� 6.��� a. The Probation
Division shall provide the licensing authority with a copy of the order
requiring the suspension or revocation of a license.� Upon receipt of an order
requiring the suspension or revocation of a license, the licensing authority
shall immediately notify the licensee of the effective date of the suspension
or revocation, which shall be 20 days after the postmark of the notice, direct
the licensee to refrain from engaging in the activity associated with the
license, surrender any license as required by law, and inform the licensee that
the license shall not be reinstated until the court or Probation Division
certifies that the conditions which resulted in the suspension or revocation
are satisfied.� The Probation Division and the State IV-D agency in association
with the affected licensing authorities may develop electronic or magnetic tape
data transfers to notify licensing authorities of restrictions, suspensions,
revocations and reinstatements.� No liability shall be imposed on a licensing authority
for suspending or revoking a license if the action is in response to a court
order issued in accordance with P.L.1996, c.7(C.2A:17-56.41 et seq.).�
Licensing authorities shall not have jurisdiction to modify, remand, reverse,
vacate or stay a court order to restrict, suspend or revoke a license for
non-payment of child support.

���� b.��� If a licensee, upon
receipt of the notice of suspension or revocation from the licensing authority,
disputes that he is an obligor, the licensee shall notify the licensing
authority and the Probation Division by registered mail within 20 days of the
postmark of the notice and request a hearing.� Upon receipt of the licensee's
request for a hearing, the Probation Division shall determine if the licensee
is an obligor.� If the Probation Division determines that the licensee is an
obligor, the Probation Division shall file a petition for a judicial hearing on
the issue of whether the licensee is an obligor.� The hearing shall occur
within 30 days.� If the Probation Division determines that the licensee is not
an obligor, the Probation Division shall so notify the licensee and the
licensing authority.� The licensing authority shall not suspend or revoke a
person's license, if the licensing authority received proper notice of the
licensee's request for a hearing pursuant to this subsection, until the court
finds that the licensee is an obligor. The Probation Division shall notify the
licensing authority of the court's finding.� Upon receipt of the court's
finding that the licensee is an obligor, the licensing authority shall
immediately suspend or revoke the obligor's license without additional review
or hearing.

���� c.���� The revocation or
suspension of a license ordered by the court in accordance with P.L.1996, c.7
(C.2A:17-56.41 et seq.) shall continue until the Probation Division or the
obligor files with the licensing authority a certified court order restoring
the license.

���� d.��� Each licensing authority
shall require license applicants to certify on the license application form,
under penalty of perjury, that the applicant does not have a child support
obligation, the applicant does have such an obligation but the arrearage amount
does not equal or exceed the amount of child support payable for six months and
any court-ordered health care coverage has been provided for the past six
months,
or
the applicant has not failed to respond to a subpoena
relating to a paternity or child support proceeding
[
, or the applicant is not the
subject of a child-support related warrant
]
.�
A license shall not be granted to an obligor who applies for a license if there
is an arrearage equal to or exceeding the amount of child support payable for
six months, the applicant has not provided court-ordered health care coverage
during the past six months or the applicant has failed to respond to a subpoena
relating to a paternity or child support proceeding
[
or is the subject of a child
support-related warrant
]
.�
The application form shall state that making a false statement may subject the
applicant to contempt of court.� It shall also state that if the applicant's
certification is found to be false, the licensing authority shall take
disciplinary action including, but not limited to, immediate revocation or
suspension of the license.

���� e.���� For all licenses issued
or renewed in the State after the effective date of P.L.1996, c.7(C.2A:17-56.41
et seq.), the licensing authority shall record the full name, mailing address,
Social Security number and date of birth of the applicant or licensee.� All
affected licensing authorities shall cooperate and enter into agreements with
the Probation Division and the State IV-D agency to exchange information to
effectuate the purposes of P.L.1996, c.7(C.2A:17-56.41 et seq.).� The Division
of Motor Vehicles in the Department of Transportation and other appropriate
licensing agencies shall amend their regulations and public notices to permit
Social Security numbers collected by those agencies to be used for child
support enforcement purposes.� License information obtained through data
matches with licensing authorities shall be maintained on the State case
registry in the Department of Human Services for future use.

(cf: P.L.1998, c.1, s.30)

���� 5.��� Section 4 of P.L.1997,
c.172 (C.56:11-31) is amended to read as follows:

���� 4.��� a.� A consumer reporting
agency may furnish a consumer report under the following circumstances and no
other:

���� (1)�� In response to the order
of a court having jurisdiction to issue such an order, or a subpoena issued in
connection with proceedings before a State or federal grand jury.

���� (2)�� In accordance with the
written instructions of the consumer to whom it relates.

���� (3)�� To a person which it has
reason to believe:

���� (a)�� intends to use the
information in connection with a credit transaction involving the consumer on
whom the information is to be furnished and involving the extension of credit
to, or review or collection of an account of, the consumer;

���� (b)�� intends to use the
information for employment purposes;

���� (c)�� intends to use the
information in connection with the underwriting of insurance involving the
consumer;

���� (d)�� intends to use the
information in connection with a determination of the consumer's eligibility
for a license or other benefit granted by a governmental instrumentality
required by law to consider an applicant's financial responsibility or status;

���� (e)�� intends to use the
information, as a potential investor or servicer, or current insurer, in
connection with a valuation of, or an assessment of the credit or prepayment
risks associated with, an existing credit obligation; or

���� (f)�� otherwise has a
legitimate business need for the information:

���� (i)��� in connection with a
business transaction that is initiated by the consumer; or

���� (ii)�� to review an account to
determine whether the consumer continues to meet the terms of the account.

���� (4)�� In response to a request
by the head of a State or local child support enforcement agency (or a State or
local government official authorized by the head of such an agency), if the
person making the request certifies to the consumer reporting agency that:

���� (a)�� the consumer report is
needed for the purpose of establishing an individual's capacity to make child
support payments or determining the appropriate level of those payments;

���� (b)�� the paternity of the
consumer for the child to which the obligation relates has been established or
acknowledged by the consumer in accordance with State laws under which the
obligation arises (if required by those laws);

���� (c)��
[
the person has
provided at least 10 days' prior notice to the consumer whose report is
requested, by certified or registered mail to the last known address of the
consumer, that the report will be requested; and

���� (d)
]
the consumer report will be kept
confidential, will be used solely for a purpose described in paragraph (1) of
this subsection, and will not be used in connection with any other civil,
administrative, or criminal proceeding, or for any other purpose.

���� (5)�� To an agency
administering a state plan under 42 U.S.C. s.654 for use to set an initial or
modified child support award.

���� b.��� A consumer reporting
agency may furnish a consumer report for employment purposes only if:

���� (1)�� the person who obtains
the report from the agency certifies to the agency that:

���� (a)�� the person has complied
with subsection c. of this section with respect to the consumer report, and the
person will comply with subsection d. of this section with respect to the
consumer report if that subsection becomes applicable; and

���� (b)�� information from the
consumer report will not be used in violation of any applicable federal or
state equal employment opportunity law or regulation; and

���� (2)�� the consumer reporting
agency provides with the report a summary of the consumer's rights under the
federal "Fair Credit Reporting Act," 15 U.S.C. s.1681 et seq.

���� c.���� A person may not
procure a consumer report, or cause a consumer report to be procured, for
employment purposes with respect to any consumer, unless:

���� (1)�� a clear and conspicuous
disclosure has been made in writing to the consumer at any time before the
report is procured or caused to be procured, in a document that consists solely
of the disclosure, that a consumer report may be obtained for employment purposes;
and

���� (2)�� the consumer has
authorized in writing the procurement of the report by that person.

���� d.��� A consumer reporting
agency shall not furnish for employment purposes, or in connection with a
credit or insurance transaction or a direct marketing transaction, a consumer
report that contains medical information about a consumer unless the consumer
consents to the furnishing of the report in writing.

���� e.���� In using a consumer
report for employment purposes, before taking any adverse action based in whole
or in part on the report, the person intending to take an adverse action shall
provide to the consumer to whom the report relates:

���� (1)�� a copy of the report;
and

���� (2)�� a description in writing
of the rights of the consumer under this act and the federal "Fair Credit
Reporting Act," 15 U.S.C. s.1681 et seq.

���� f.���� Consumer reporting
agencies may furnish a consumer report relating to any consumer pursuant to
subparagraph (a) or (c) of paragraph (3) of subsection a. of this section in
connection with any credit or insurance transaction that is not authorized by
the consumer only if the consumer reporting agency complies with the
requirements of subsections (c) and (e) of section 604 of the federal
"Fair Credit Reporting Act," 15 U.S.C. s.1681b.

���� g.��� A person shall not use
or obtain a consumer report for any purpose unless:

���� (1)�� the consumer report is
obtained for a purpose for which the consumer report is authorized to be
furnished under this section; and

���� (2)�� the purpose for its use
is certified in accordance with section 5 of this act by a prospective user of
the report.

(cf: P.L.1997, c.172,s.4)

���� 6.��� This act shall take
effect immediately.

STATEMENT

���� This bill establishes greater
discretion in the court concerning license suspension and credit reporting due
to failure to pay child support.�

���� Section 1 amends
N.J.S.A.2A:17-56.41 concerned with consequences of an obligor�s noncompliance,
to make discretionary, instead of mandatory, the suspension of an obligor�s
license where arrearages equal or exceed the amount of child support payable
for six months or court-ordered health care coverage for the child is not
provided for six months.� The amendment further expressly permits an obligor to
reach an agreement with the Probation Division on a payment amount that is
approved by the court including the resumption of timely ongoing support
payments.

���� Section 2 amends
N.J.S.A.2A:17-56.43 concerned with suspension, revocation of license, to give
the court discretion to consider suspending or revoking a driver's license
prior to a professional or recreational license.� The amendment further gives
the court discretion to allow the obligor to pay a lump sum, in lieu of 25% of
the past due child support amount, within a time frame not to exceed ten days,
instead of three days of the hearing, over a longer period of five years,
instead of one year to satisfy the remainder of the arrearage.� The amendment
permits both an extension and modification of the payment plan, upon a showing
of good cause. Further, the amendment deletes the provision of
N.J.S.A.2A:17-56.41 that provides a payment plan shall not extend beyond the
date the dependent child reaches the age of 18, permitting a longer repayment
period, in some instances.

���� Section 3 amends
N.J.S.A.2A:17-56.8 concerned with the enforcement of child support orders, to
delete language permitting denial, suspension or revocation of the driver's
license and professional or occupational licenses, or recreational or sporting
license held or applied for if a warrant for the obligor's arrest has been
issued by the court due to failure to pay child support as ordered, failure to
appear at a hearing to establish paternity or child support, or failure to
appear at a hearing to enforce a child support order and said warrant remains
outstanding.

���� Section 4 amends
N.J.S.2A:17.56.44 concerned with suspension, revocation procedures, clarifies
certain certifications required by licensing authorities, including that the
applicant is not the subject of a child-support related warrant.�

���� Section 5 amends
N.J.S.A.56:11-31 concerned with furnishing of consumer report; permissible
circumstances.� The amendment deletes the requirement that 10 days� notice has
been provided to the consumer whose report is requested by the head of a State
or local child support enforcement agency.