COMMENT DUE DATE:
February 16, 2012
DATE:
January 13, 2012
Tammy Hall, OCSS (405) 522-0022
Dena Thayer, OIRP Programs Administrator (405) 521-4326
Nancy Kelly, OIRP (405) 522-6703
RE:
APA WF 11-11
The proposed policy is Permanent . This proposal will go to the Commission meeting on
CHAPTER 25.OKLAHOMA CHILD SUPPORT SERVICES
Subchapter 5. Operational Policies
Part 25. Federal Offset Programs
OAC 340:25-5-215 [AMENDED]
OAC 340:25-5-215.1 [AMENDED]
Part 27. State Tax Refund Offset Program
OAC 340:25-5-235 [AMENDED]
(Reference APA WF 11-11)
SUMMARY:
The proposed revisions to Subchapter 5 of Chapter 25 are to: (1) implement policy changes recommended during the Oklahoma Child Support Services (OCSS) annual policy review process; (2) continue improving the quality of services provided by OCSS; (3) redistribute costs currently paid by the Oklahoma Department of Human Services (OKDHS); and (4) make non-substantive changes to improve the clarity of rules.
OAC 340:25-5-215 is amended to: (1) cite additional legal authority; and (2) permit OCSS to deduct $25 from federal tax refund offset collections as allowed under Section 654 of Title 42 of the United States Code.
OAC 340:25-5-215.1 is amended to permit OCSS to deduct from an administrative offset the amount charged by the United States Treasury for performing the offset as allowed under Section 302.33 of Title 45 of the United States Code.
OAC 340:25-5-235 is amended to state that OCSS charges the noncustodial person $5 or 5% of the amount collected, whichever is greater, for any state tax offset collected through the Oklahoma Tax Commission as allowed under Section 205.2 of Title 68 of the Oklahoma Statutes.
PERMANENT RULEMAKING APPROVAL IS REQUESTED.
LEGAL AUTHORITY:
Commission for Human Services; Article XXV, Sections 2 and 4 of the Oklahoma Constitution; Sections 653, 654, 654a, and 654b of Title 42 of the United States Code; Section 1738B of Title 28 of the United States Code; Sections 302.32, 302.33, 302.38; 302.60, 302.70, 303.6, 303.72, 307.11, 307.13 of Title 45 of the Code of Federal Regulations; and Sections 205.2 and 205.3 of Title 68 of the Oklahoma Statutes.
Rule Impact Statement
To:Programs administrator
Office of Intergovernmental Relations and Policy
From:Gary W. Dart, Division Director
Oklahoma Child Support Services
Date:January 17, 2012
Re:CHAPTER 25.OKLAHOMA CHILD SUPPORT SERVICES
Subchapter 5. Operational Policies
Part 25. Federal Offset Programs
OAC 340:25-5-215 [AMENDED]
OAC 340:25-5-215.1 [AMENDED]
Part 27. State Tax Refund Offset Program
OAC 340:25-5-235 [AMENDED]
(Reference APA WF 11-11)
Contact:Tammy Hall, Programs Manager, at 405-522-0022.
A.Brief description of the purpose of the proposed rule:
Purpose.The proposed revisions to Subchapter 5 of Chapter 25 are to: (1) implement policy changes recommended during the Oklahoma Child Support Services (OCSS) annual policy review process; (2) continue improving the quality of services provided by OCSS; (3) redistribute costs currently paid by the Oklahoma Department of Human Services (OKDHS); and (4) make non-substantive changes to improve the clarity of rules.
Strategic Plan impact. The proposed amendments support OKDHS goals of assisting customers in becoming independent, employed, productive citizens; providing services that support and strengthen the family and protect its members; and continuously improving systems and processes to achieve agency goals.The proposed rules comply with state and federal requirements and position OCSS to improve services to its customers.They support the OCSS strategic plan to:(1)increase current support collected; (2) promote high quality customer services; and (3) improve performance measures necessary to maintain and improve the child support program.
Substantive changes.
OAC 340:25-5-215 is amended to: (1) cite additional legal authority; and (2) permit OCSS to deduct $25 from federal tax refund offset collections as allowed under Section 654 of Title 42 of the United States Code.
OAC 340:25-5-215.1 is amended to permit OCSS to deduct from an administrative offset the amount charged by the United States Treasury for performing the offset as allowed under Section 302.33 of Title 45 of the United States Code.
OAC 340:25-5-235 is amended to state that OCSS charges the noncustodial person $5 or 5% of the amount collected, whichever is greater, for any state tax offset collected through the Oklahoma Tax Commission as allowed under Section 205.2 of Title 68 of the Oklahoma Statutes.
Reasons. Tax and administrative offsets are federally mandated collection remedies, the costs of which are currently borne by OCSS.In the interest of decreasing the agency’s expenditures and burden on taxpayers, OCSS is now electing to reassign these costs to the customers who benefit from these services.
Repercussions.Currently, these costs are borne by the agency and, ultimately, by Oklahoma taxpayers.Implementing these rules will allow OCSS to use available agency resources more efficiently and more effectively.If the proposed revisions are not implemented, OCSS will continue to pay these costs. The proposed rules will ensure that only customers who benefit from these services, will bear costs associated with the services.
Legal authority.
Commission for Human Services; Article XXV, Sections 2 and 4 of the Oklahoma Constitution; Sections 653, 654, 654a, and 654b of Title 42 of the United States Code; Section 1738B of Title 28 of the United States Code; Sections 302.32, 302.33, 302.38; 302.60, 302.70, 303.6, 303.72, 307.11, 307.13 of Title 45 of the Code of Federal Regulations; and Sections 205.2 and 205.3 of Title 68 of the Oklahoma Statutes.
Permanent approval. Permanent rulemaking approval is requested effective July 1, 2012.
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: The classes of persons most likely to be affected by the proposed rules are OCSS customers for whom support is collected from or paid to throughtax refund offsets and administrative offsets.Customers who do not benefit from these enforcement remedies will bear no costs associated with implementation of the rules.
C.A description of the classes of persons who will benefit from the proposed rule: These proposed amendments will benefit taxpayers and OCSS customers by decreasing the OCSS expenditures and allowing the agency to use available resources more effectively to promote a reliable source of support for Oklahoma 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 fee change: These changes will affect noncustodial parents who pay support through state tax refund offsets and custodial persons who receive support through federal tax refund offsets and federal administrative offsets.OCSS customers who do not receive these services will not be affected.
The proposed fee changes are:(1) Federal Tax Refund Offset fee.When OCSS collects support from a federal tax refund offset, the obligor receives full credit for the offset, while $25 will be deducted from the payment the custodial person receives.The majority of this fee will reimburse OCSS for the cost of the offset charged by the United States Treasury, while the remainder will reimburse OCSS for the cost of providing this enforcement remedy; (2) Federal Administrative Offset Cost Recovery Amount.When OCSS collects support from a federal administrative offset, the obligor receives full credit for the offset, while the cost of the offset will be deducted from the payment the custodial person receives.This amount will reimburse OCSS for the cost of the offset, which is set by the United States Treasury; and (3) State Tax Refund fee.When OCSS collects support from a state tax refund offset, OCSS retains $5 or 5% of the amount collected, whichever is greater.The obligor receives credit for the amount of the offset collected minus the amount retained.The amount retained by OCSS will be distributed according to Section 205.2 of Title 68 of the Oklahoma Statutes, which allots a majority of the payment to the Oklahoma Tax Commission as reimbursement for performing the offset and a portion to OCSS.
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 cost to OKDHS includes the cost of printing and distributing the rules, which is estimated to be less than $100.The revised rules will result in an approximate savings of $293,251 state dollars:
·The Federal Tax Refund Offset fee will save approximately $214,047 of state dollars in the next year.
·The Federal Administrative Offset Cost Recovery Amount will save approximately $7,004 of state dollars in the next year.
·The State Tax Refund fee will save approximately $72,200 of state dollars in the next year.
This savings will allow OCSS to more effectively use its resources and continue offering a full range of services to customers.
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: The proposed rules do not have an economic impact on any political subdivision, nor will the cooperation of any political subdivisions be required in implementation or enforcement of the rules.
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: There are no anticipated adverse effects 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 nonregulatory methods or less intrusive methods for achieving the purpose of the proposed rule: These rule changes are 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: These proposals are 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 and families 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 implement the proposed rules may result in the elimination of services and employees and the collection of less child support for Oklahoma.
K.The date the rule impact statement was prepared and, if modified, the date modified: Prepared December 2, 2011.Modified January 17, 2012.
CHAPTER 25. OKLAHOMA CHILD SUPPORT SERVICES
SUBCHAPTER 5. OPERATIONAL POLICIES
PART 25. FEDERAL OFFSET PROGRAMS
340:25-5-215. Collection of past-due support from federal tax offset
(a) Oklahoma Child Support Services (OCSS), requests collection of child support debts from federal income tax refunds.This program is governed by:
(1) Section Sections 654 and 664 of Title 42 of the United States Code; and
(2) Section 285.3 of Title 31, and Sections 302.33, 302.60, and 303.72 of Title 45 of the Code of Federal Regulations.
(b) A custodial person receiving a payment under this program must return the payment if the Internal Revenue Service (IRS) makes an adjustment within six years following the end of to the tax year for which the refund was paid.Any adjusted amount not returned by the custodial person is an overpayment and subject to recovery under Part 37 of this Subchapter.
(c) If an offset is made to satisfy non-TANF past-due support from a refund based on a joint return, OCSS delays issuance of the funds for a period of time not to exceed six months from the notice of deposit.
(d) Collections received by a IV-D agency as a result of a federal income tax refund intercept must be distributed as past-due support per Section 657 of Title 42 of the United States Code.
(e) When an offset is made, OCSS deducts $25 from the collection as allowed under Section 654 of Title 42 of the Code of Federal Regulations.The obligor receives credit against the child support arrearages for the full amount of the federal tax offset collected.
340:25-5-215.1. Collection of past-due support from federal administrative offsets
(a) The Oklahoma Department of Human Services Child Support Enforcement Division Services (OCSS) may collect child support debts through administrative offsets of federal benefit programs, unless a payment is exempt from offset by federal law or by action of the Secretary of the Treasury.Administrative offsets are governed by:
(1) the Debt Collection Improvement Act of 1996, Public Law 104-134;
(2) Executive Order 13019, Supporting Families: Collecting Delinquent Child Support Obligations; and
(3) Section 285.1 of Title 31 of the Code of Federal Regulations.
(b) When an offset is made, OCSS deducts from the collection an amount equal to the cost of the offset charged by the United States Treasury as allowed under Section 302.33 of Title 45 of the Code of Federal Regulations.The obligor receives credit for the amount of the federal administrative offset collected, minus the cost charged by the United States Treasury.
PART 27. STATE TAX REFUND OFFSET PROGRAM
340:25-5-235.Collection of past support and overpayments from state tax refund offset
(a) The Oklahoma Department of Human Services through Oklahoma Child Support Services (OCSS) requests collection of overpayments and past child support, including interest, and spousal support from state tax refund offset.The state tax offset program is governed by:
(1) Section 303.102 of Title 45 of the Code of Federal Regulations;
(2) Sections 205.2 and 205.3 of Title 68 of the Oklahoma Statutes; and
(3) Sections 11-6 through 11-11 of Chapter 50 of Title 710 of the Oklahoma Administrative Code.
(b) When an offset is made to satisfy non-TANF non Temporary Assistance for Needy Families (TANF) for past-due support from a state tax refund, OCSS delays issuance of the funds for a period of forty-five 45 days from the notice of deposit.
(c) OCSS charges the noncustodial person $5 or five percent of the amount collected, whichever is greater, for any state tax offset collected through the Oklahoma Tax Commission as allowed under Sections 205.2 and 205.3 of Title 68 of the Oklahoma Statutes.The obligor receives credit for the amount of the state offset collected, minus the cost recovery amount.
CHAPTER 25. OKLAHOMA CHILD SUPPORT SERVICES
SUBCHAPTER 5. OPERATIONAL POLICIES
PART 25. FEDERAL OFFSET PROGRAMS
340:25-5-215. Collection of past-due support from federal tax offset
(a) Oklahoma Child Support Services (OCSS), requests collection of child support debts from federal income tax refunds.This program is governed by:
(1) Section Sections 654 and 664 of Title 42 of the United States Code; and
(2) Section 285.3 of Title 31, and Sections 302.33, 302.60, and 303.72 of Title 45 of the Code of Federal Regulations.
(b) A custodial person receiving a payment under this program must return the payment if the Internal Revenue Service (IRS) makes an adjustment within six years following the end of to the tax year for which the refund was paid.Any adjusted amount not returned by the custodial person is an overpayment and subject to recovery under Part 37 of this Subchapter.
(c) If an offset is made to satisfy non-TANF past-due support from a refund based on a joint return, OCSS delays issuance of the funds for a period of time not to exceed six months from the notice of deposit.
(d) Collections received by a IV-D agency as a result of a federal income tax refund intercept must be distributed as past-due support per Section 657 of Title 42 of the United States Code.
(e) When an offset is made, OCSS deducts $25 from the collection as allowed under Section 654 of Title 42 of the Code of Federal Regulations.The obligor receives credit against the child support arrearages for the full amount of the federal tax offset collected.
340:25-5-215.1. Collection of past-due support from federal administrative offsets
(a) The Oklahoma Department of Human Services Child Support Enforcement Division Services (OCSS) may collect child support debts through administrative offsets of federal benefit programs, unless a payment is exempt from offset by federal law or by action of the Secretary of the Treasury.Administrative offsets are governed by:
(1) the Debt Collection Improvement Act of 1996, Public Law 104-134;
(2) Executive Order 13019, Supporting Families: Collecting Delinquent Child Support Obligations; and
(3) Section 285.1 of Title 31 of the Code of Federal Regulations.
(b) When an offset is made, OCSS deducts from the collection an amount equal to the cost of the offset charged by the United States Treasury as allowed under Section 302.33 of Title 45 of the Code of Federal Regulations.The obligor receives credit for the amount of the federal administrative offset collected, minus the cost charged by the United States Treasury.
PART 27. STATE TAX REFUND OFFSET PROGRAM
340:25-5-235.Collection of past support and overpayments from state tax refund offset
(a) The Oklahoma Department of Human Services through Oklahoma Child Support Services (OCSS) requests collection of overpayments and past child support, including interest, and spousal support from state tax refund offset.The state tax offset program is governed by:
(1) Section 303.102 of Title 45 of the Code of Federal Regulations;
(2) Sections 205.2 and 205.3 of Title 68 of the Oklahoma Statutes; and
(3) Sections 11-6 through 11-11 of Chapter 50 of Title 710 of the Oklahoma Administrative Code.
(b) When an offset is made to satisfy non-TANF non Temporary Assistance for Needy Families (TANF) for past-due support from a state tax refund, OCSS delays issuance of the funds for a period of forty-five 45 days from the notice of deposit.
(c) OCSS charges the noncustodial person $5 or five percent of the amount collected, whichever is greater, for any state tax offset collected through the Oklahoma Tax Commission as allowed under Sections 205.2 and 205.3 of Title 68 of the Oklahoma Statutes.The obligor receives credit for the amount of the state offset collected, minus the cost recovery amount.
