House Bill 21-1220 Summary

• Establishes a $1,500 monthly income threshold for child support calculations, with a 75% low-income adjustment applied to parents earning less than $1,500 per month and a cap of 20% of adjusted gross income when combined with other adjustments.

• Reduces interest rates on child support arrearages from 4% above the statutory rate (compounded monthly) to 2% above the statutory rate (compounded annually) for debts accruing after July 1, 2021, and allows courts discretion to waive or reduce interest based on good cause.

• Requires courts to make all necessary persons parties to child support proceedings and determine legal parentage, while granting juvenile courts concurrent jurisdiction with dependency and neglect courts on parentage determinations.

• Reforms income assignment procedures by requiring immediate activation of income assignments for orders entered after July 1, 1996, clarifies notice requirements, and requires income assignments to be paid through the family support registry.

• Expands the definition of insurable events subject to child support liens to include life insurance policies and annuity contracts and their proceeds, effective January 1, 2022.