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COMMENT DUE DATE:  

September 8, 2009

DATE: 

August 25, 2009

Tammy Hall OCSS (405) 522-0022

Dena Thayer   PMU Manager   (405) 521-4326

Nancy Kelly  PMU Specialist   (405) 522-6703

RE:  

APA WF 09-17

It is very important that you provide your comments regarding the DRAFT COPY of policy by the comment due date. Comments are directed to *STO.LegalServices.Policy@okdhs.org

The proposed policy is  Emergency .  This proposal will go to the Commission meeting on

This rule was revised as an emergency rule effective 7-21-09.The current proposed rule revisions are highlighted in YELLOW

Chapter 25. Oklahoma Child Support Services

Subchapter 5. Operational Policies

Part 39. Accounting and Distribution

OAC 340:25-5-351 [AMENDED]

(Reference APA WF 09-17)

SUMMARY:The proposed revision to Subchapter 5 of Chapter 25 amends the rule to reassign a 2006 mandatory federal annual $25.00 fee on all child support cases where $500.00 of child support has been collected and distributed to the custodial person, except in those cases where current or former Temporary Assistance for Needy Families (TANF) or Aid to Families with Dependent Children (AFDC) has been provided. This fee will be automatically collected from child support payments when the federally mandated requirements are met.This fee is currently paid by the Oklahoma Department of Human Services (OKDHS). Revisions in accordance with federal law, to remove the word assigned when prorating between current child support and cash medical support collections in distribution of the payments allowing more money to be distributed to families.

340:25-5-351 is amended to reassign a 2006 mandatory federal annual $25.00 fee on all support cases where $500.00 support has been collected and distributed to the custodial person, except in those cases where current or former Temporary Assistance for Needy Families (TANF) or Aid to Families with Dependent Children (AFDC) has been provided. This fee will be automatically collected from child support payments when the federally mandated requirements are met.Revisions are also made in accordance with federal law, to remove the word assigned when prorating between current child support and cash medical support collections in issuance of the payments.This allows more money to be issued to families.

EMERGENCY APPROVAL:Emergency approval is requested in order to align the reassignment of the mandatory fee with the federal fiscal year, beginning October 1, 2009.Due to budget constraints, OKDHS is now electing to reassign this fee to be paid from collected support.

LEGAL AUTHORITY:Commission for Human Services, Article XXV, Sections 2, 3, and 4 of the Oklahoma Constitution; Sections 652, 654, and 666 of Title 42 of the United States Code; Sections 302.32, 303.6, and 303.31 of Title 45 of the Code of Federal Regulations; Section 237 of Title 56 of the Oklahoma Statutes; and Section 253 of Title 75 of the Oklahoma Statutes.

OKLAHOMA DEPARTMENT OF HUMAN SERVICES

Rule Impact Statement

To:Dena Thayer, Programs Administrator

Policy Management Unit

From:Gary W. Dart, Director

Oklahoma Child Support Services

Date:August 19, 2009

Re:Chapter 25. Oklahoma Child Support Services

Subchapter 5. Operational Policies

Part 39. Accounting and Distribution

OAC 340:25-5-351 [AMENDED]

(Reference APA WF 09-17)

Contact:Tammy Hall 405-522-0022

A.Brief description of the purpose of the proposed rule:

Purpose.The proposed revision to Subchapter 5 of Chapter 25 reassigns a 2006 mandatory federal annual $25.00 fee on all child support cases where $500.00 of support has been collected and distributed to the custodial person, except in those cases where current or former Temporary Assistance for Needy Families (TANF) or Aid to Families with Dependent Children (AFDC) has been provided. This fee will be automatically collected from child support payments when the federally mandated requirements are met.This fee is currently paid by the Oklahoma Department of Human Services (OKDHS).

Revisions are also made in accordance with federal law, to remove the word assigned when prorating between current child support and cash medical support collections in issuance of the payments.This allows more money to be issued to families.

Strategic Plan impact.The proposed amendment supports the OKDHS key value of delivering prompt, accurate, and courteous service in a fiscally responsible manner.These changes allow Oklahoma Child Support Services (OCSS) to continue to support the strategic plan to increase current support collected, to promote high quality customer service, and to improve performance measures necessary to maintain and improve the child support program.

Substantive changes. OAC 340:25-5-351 is amended to clarify the assessment of the federally mandated annual $25.00 fee.These changes also allow an even proration of cash medical support collections when allocating between current child support and cash medical support that will result in more child support payments being distributed to families.

Reasons.OCSS has authority to assess reasonable fees for services to individuals not receiving TANF services under Section 237 of Title 56 of the Oklahoma Statutes.When the 2005 Deficit Reduction Act amended Section 654 of Title 42 of the United States Code to mandate this fee OKDHS chose the option to pay these fees.Due to budget constraints we are now electing the reassignment of this fee be paid from collected support.

Repercussions. Failure to adopt this amended rule will result in a budget shortfall for OCSS and necessistate the discontinuace of other collection processes that will be cost prohibitive if the state continues to pay this annual $25.00 fee.

Legal authority. Commission for Human Services, Article XXV, Sections 2, 3, and 4 of the Oklahoma Constitution; Sections 652, 654, and 666 of Title 42 of the United States Code; Sections 302.32, 303.6, and 303.31 of Title 45 of the Code of Federal Regulations; Section 237 of Title 56 of the Oklahoma Statutes; and Section 253 of Title 75 of the Oklahoma Statutes.

Emergency approval.Emergency approval is requested in order to align the reassignment of the mandatory fee with the federal fiscal year, beginning October 1, 2009.Due to budget constraints, OKDHS is now electing to reassign this fee to be paid from collected support.

B.A description of the classes of persons who most likely will be affected by the proposed rule, including classes that will bear the costs of the proposed rule, and any information on cost impacts received by the Agency from any private or public entities: Custodial persons who are not currently or have never received TANF or AFDC and have annually received $500.00 of child support collections through OCSS.If the responsibility for paying this fee is not reassigned, the continued annual cost to the state is estimated to exceed $1,000,000.

C.A description of the classes of persons who will benefit from the proposed rule: This proposed amendment should avoid the need for eliminating OCSS services which promote a reliable source of support for the families we serve.Also, some custodial persons will receive more monthly support since OCSS will be able to distribute more cash medical collections to those families.

D.A description of the probable economic impact of the proposed rule upon the affected classes of persons or political subdivisions, including a listing of all fee changes and, whenever possible, a separate justification for each: The majority of child support cases are non-public assistance cases.Currently, those families incurr no cost for the services provided by OCSS.This proposed rule will assess an annual $25.00 fee that is currently being paid by the state.The proposal does not significantly affect any political subdivision.

E.The probable costs and benefits to the Agency and to any other agency of the implementation and enforcement of the proposed rule, the source of revenue to be used for implementation and enforcement of the proposed rule and any anticipated effect on state revenues, including a projected net loss or gain in such revenues if it can be projected by the Agency: The probable benefit to OKDHS is recoupment of approximately $1,000,000.00 currently being paid on non-public assistance child support cases.

The estimated cost of informing custodial persons about this fee through a one time direct mailing is approximately $60,000.00. The probable cost to OKDHS includes the cost of printing and distributing the rule and training material for staff, and staff time associated with reviewing and revising the rule and training material.The cost of printing and distribution is estimated to be under $100 and is within the current budget and requires no additional funding.Any costs of implementation are expected to be offset by OKDHS no longer paying the annual $25.00 fee from state funds. This proposal does not increase any OKDHS duties or need for additional full time employees.

F.A determination whether implementation of the proposed rule will have an impact on any political subdivisions or require their cooperation in implementing or enforcing the rule: This proposed rule should have no economic impact on any political subdivision or require their cooperation in implementing or enforcing the rule.

G.A determination whether implementation of the proposed rule will have an adverse economic effect on small business as provided by the Oklahoma Small Business Regulatory Flexibility Act: This proposed rule should have no adverse economic effect on small business.

H.An explanation of the measures the Agency has taken to minimize compliance costs and a determination whether there are less costly or non-regulatory methods or less intrusive methods for achieving the purpose of the proposed rule: This proposal is intended to minimize compliance costs and intrusive regulations while fully complying with state and federal mandates.There are no less intrusive or less costly methods of achieving full compliance.

I.A determination of the effect of the proposed rule on the public health, safety, and environment and, if the proposed rule is designed to reduce significant risks to the public health, safety, and environment, an explanation of the nature of the risk and to what extent the proposed rule will reduce the risk: This proposal is intended to comply with state and federal child support enforcement mandates, thereby increasing program effectiveness and contributing to the health, safety, and well-being of children entitled to support.

J.A determination of any detrimental effect on the public health, safety, and environment if the proposed rule is not implemented: Failure to adopt this amended rule will result in a budget shortfall for OCSS and necessistate the discontinuace of other collection processes that will be cost prohibitive if the state continues to pay this annual $25.00 fee.

K.The date the rule impact statement was prepared and, if modified, the date modified: Prepared August 18, 2009 and modified August 25, 2009.

SUBCHAPTER 5. OPERATIONAL POLICIES

 

PART 39. ACCOUNTING AND DISTRIBUTION

 

340:25-5-351. Allocation and distribution of collections

Revised 7-21-09____-09

(a) Basis for allocation and distribution of collections.The Oklahoma Department of Human Services (OKDHS) distributes support collections received by the Centralized Support Registry for IV-D and non-IV-D cases.The collections are allocated and distributed according to Part A of Subchapter IV of Chapter 7 of Title 42 of the United States Code, and associated federal regulations and Oklahoma Statutes.This Section establishes allocation of collections across support orders involving multiple families and different types of support obligations.It also establishes high-level distribution policies.Actual distribution of money occurs under Section 657 of Title 42 of the United States Code after collections are allocated according to this Section.Oklahoma Child Support Services (OCSS) is also governed by Section 654 of Title 42 of the United States Code and Section 302.33 of Title 45 of the Code of Federal Regulations and Section 237 of Title 56 of the Oklahoma Statutes in the collection of the annual fee.

(b) Annual fee.OCSS automatically collects an annual $25.00 fee once $500.00 support has been collected and issued to the custodial person.A case is exempt from this annual fee when the family is currently receiving or formerly received assistance under state or tribal Temporary Assistance for Needy Families (TANF) or Aid to Families with Dependent Children program. When there is more than one IV-D child support program involved, OCSS collects the annual fee on cases when Oklahoma is the initiating state.

(c) Overall priority of allocation and distribution.This subsection has priority over (cd) through (hi) of this Section.

(1) The OKDHS Child Support Enforcement Division (CSED) Oklahoma Child Support Services (OCSS) allocates payments from a collection action to satisfy amounts due under obligations included in the action.Income assignment orders, liens, administrative offsets, contempt actions, and license revocations are examples of collection actions.If CSED OCSS receives a voluntary payment, CSED OCSS honors designated payments from noncustodial parents who have multiple family obligations if payments are reasonably consistent with this Section.Otherwise, CSED OCSS allocates voluntary payments to cases with court‑ordered obligations before cases without court-ordered obligations.¢ 1

(2) In a non-IV-D case, CSED OCSS allocates and distributes payments through the Centralized Support Registry directly to the obligee, without otherwise allocating or distributing payments under this Section, unless money was previously assigned to the State of Oklahoma.

(3) Except as provided for in (ef)of this Section, CSED OCSS applies arrearages arrearage collections owed to the custodial parent before paying temporarily or permanently assigned arrears owed to a state.

(4) Temporarily assigned arrears are paid before permanently assigned arrears.If the support amount ordered for a prior period is less than the cumulative amount of cash assistance from the IV-A and IV-E programs, the support is permanently assigned.In cases involving unreimbursed assistance, CSED OCSS retains current monthly support collections in excess of the current assistance payment under Temporary Assistance for Needy Families (TANF) to reimburse the State of Oklahoma for past assistance.

(5) CSED OCSS applies payments to interest owed to a particular custodial person after current child support and the principal arrears balance is paid in full.All interest debt is referred and distributed for IRS Internal Revenue Service (IRS) offset as arrears owed to the custodial person and not as a state debt or as assigned cash medical support.CSED does not apply interest collections from an IRS offset to state debt unless CSED When OCSS has been unable to locate the custodial person after reasonable efforts, OCSS applies interest collections from an IRS offset to state debt.

(cd) Initial allocation to monthly current support obligations.Except as provided in (ef) of this Section, CSED OCSS initially allocates collections to current support obligations due each month.

(1) If collections are less than the amount of all current support due, CSED OCSS allocates collections to between the current child support due and the cash medical support specified in the order in proportionate shares.

(2) After the current child support and cash medical support obligation is met, CSED OCSS allocates collections to current spousal support due.

(de) Allocation to monthly past-due support obligations under payment plans.Except as provided in (ef)of this Section, after all current support obligations are met, CSED OCSS allocates collections under payment plans to fixed monthly past-due support obligations.Payment plans are defined in Section 237.7 of Title 56 of the Oklahoma Statutes.

(1) If collections are less than the amount due under the payment plan, CSED OCSS first allocates collections to past-due monthly current child support.

(2) After the past-due monthly child support obligation is met, CSED OCSS allocates collections to monthly past-due spousal support.

(3) CSED OCSS allocates collections to the total amount in arrears after fixed monthly past‑due support obligations in the payment plan are met.

(ef) Allocation and distribution to total amount in arrears.

(1) CSED OCSS allocates federal income tax refund offset collections to the total amount in arrears.

(2) Except for collections under a payment plan, CSED OCSS allocates collections above the current support obligation to total arrears.

(3) After all child support arrearages are satisfied, CSED OCSS allocates remaining collections to spousal support arrearages.

(fg) Allocation and distribution of arrears to assigned cash medical support.After the past-due current child support, cash medical support, and spousal support are met, OCSS allocates collections to assigned cash medical support.

(gh) Multiple family support orders.This subsection explains the allocation of collections when a noncustodial parent has multiple family obligations.For purposes of this Section, a family is a mother and a father and the child(ren) of that relationship, and any custodial person(s) of the child(ren) who is not the mother or the father.

(1) Current support.CSED OCSS prorates and applies support collections to each family based on the fixed current monthly child support obligation due each family.The collections are allocated within each family obligation under subsection (d) of this Section.

(A) If collections for current support are less than the amount of current child support due for all families, CSED prorates and allocates collections to each family based on each family's current child support due.

(B) After current child support obligations are met, CSED prorates and allocates collections to current spousal support obligations based on the amount of current spousal support due each family.

(2) Past-due support under a payment plan.CSED OCSS prorates and allocates collections to payment plans for multiple families based on each family's fixed monthly payment plan obligations due.

(3) Total arrears, including principal and interest balances.CSED OCSS prorates and allocates collections to arrears, including principal and interest balances, for multiple families based on each family's total arrears due.

(hi) Past-due support in interstate cases. In cases where CSED OCSS is collecting support for a custodial person who is receiving services from another state’s child support agency, CSED OCSS allocates arrearages arrearage payments based on information provided by the initiating state.After all current support obligations are met, CSED OCSS allocates collections to past-due support for payment plans, total arrears, and interest as follows: ¢ 2

(1) Non-public assistance balance.If any portion of the past-due balance is owed to the custodial person or will be passed through to the custodial person under federal distribution regulations, CSED OCSS allocates collections to that portion of the past-due balance and pays that amount to the other state’s State Disbursement Unit.

(2) Public assistance balances.If no portion of the past-due balance is owed to the custodial person, CSED OCSS allocates collections first to balances owed to Oklahoma and then pro rates between balances owed to the other state(s).

(ij) Interest.CSED OCSS distributes interest last in single family, multiple family, and interstate cases.

 

INSTRUCTIONS TO STAFF 340:25-5-351

Revised 7-1-08

1. Child support staff coordinate manual and automated actions on all IV-D cases that meet the criteria for collection action so resulting collections are shared among all families.

2. Child support staff review the information provided by the initiating state regarding whether the past-due balance on the case is owed to the custodial person or to the other state and time periods for balances assigned to the state(s).If the information provided is unclear or incomplete, child support staff do not build the case obligation in Oklahoma Support Information System (OSIS) until they receive information from the initiating state.Child support staff monitor interstate cases to insure that the information regarding the assignment of balances is complete and up to date, and request additional information from the initiating state as necessary.If the initiating state fails to provide the necessary information, child support staff initiate the closure process under OAC 340:25-5-123.

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