5101:12-80-10 Allocation hierarchy for support collections.

 

 

 

PUBLIC HEARING NOTICE

OHIO DEPARTMENT OF JOB AND FAMILY SERVICES

 

DATE:           August 25, 2009

TIME:            10:00 a.m.

LOCATION: Room 3110B, Rhodes State Office Tower, 30 East Broad St., Columbus, Ohio 43215

 

Pursuant to sections 3121.71, 3125.25, and 5107.05, and Chapter 119. of the Ohio Revised Code, the director of the Ohio Department of Job and Family Services gives notice of the department's intent to consider the rescission and adoption of the child support rules as identified below and of a public hearing thereon.

 

The following Ohio Administrative Code (OAC) rules are being proposed for rescission and replacement because more than 50% of the text in each rule is being stricken and a comparable amount of new text is being added to the corresponding replacement rule.

 

·         Rule 5101:12-80-10, "Allocation hierarchy for collections." This rule describes the standard allocation hierarchy for support collections. It is being replaced by rule 5101:12-80-10.

·         Rule 5101:12-80-10.1, " Federal income tax refund offset allocation hierarchy." This rule describes the allocation hierarchy for federal income tax refund offset collections. It is being replaced by rule 5101:12-80-10.1.

·         Rule 5101:12-80-10.2, " Prorating collections." This rule describes how to prorate a support collection when OCS or a child support enforcement agency (CSEA) receives a collection, the obligor has more than one support order, and there are no instructions included with the collection or remitter instructions cannot be obtained for apportioning the payment between the support orders. It is being replaced by rule 5101:12-80-10.2.

·         Rule 5101:12-80-14, " Assigned support collections."  This rule describes how support is assigned when a child or family receives Title IV-A Ohio Works First (OWF) or Title IV-E foster care maintenance (FCM) benefits, including converting (known as "sweeping") unassigned arrears into conditionally assigned arrears when the benefits start and stop, and ensuring that the amount of assigned support retained by the state does not exceed the unreimbursed assistance amount. The rule follows the provisions of the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996 regarding an OWF assignment and also includes definitions. It is being replaced by rule 5101:12-80- 14.

·         Rule 5101:12-80-14.1, " Distribution of assigned support." This rule describes how assigned support is distributed in a current OWF or FCM assistance case and in a former OWF or FCM assistance case. It is being replaced by part of rule 5101:12-80-14, rule 5101:12-80-14.1 and rule 5101:12-80-14.2.

 

 

 

 

 

 

 

 

 

The following rules are being proposed for adoption to replace the rescinded rules and to comply with new child support laws enacted through the Deficit Reduction Act of 2005 (DRA) and Amended Substitute House Bill 119 of the 127th General Assembly (House Bill 119).

The DRA requires support assigned under a Temporary Assistance to Needy Families (TANF, administered in Ohio through the Ohio Works First program) benefit period on or after October 1, 2009 to be limited to support owed during the public assistance assignment period.  Any support assigned on or after October 1, 1997 and before October 1, 2009 shall continue to follow the assignment requirements of PRWORA.

House Bill 119 requires all child support orders issued or modified in Ohio to include a cash medical support obligation.

·         Rule 5101:12-80-10, " Allocation hierarchy for support collections," describes the standard allocation hierarchy for support collections. It replaces rule 5101:12-80-

10.  Changes from the rescinded rule include: adding unassigned, unassigned conditionally assigned, and unassigned during assistance arrears to the hierarchy for a current assistance case; individually identifying the five different types of monetary medical support obligations; identifying in paragraph (A) what obligations shall not be satisfied when the collection is from unemployment compensation or a state income tax refund offset; removing the word "unpaid" from the definition of accrue because it is redundant; including "debt" in the definition of "arrears"; specifying what obligations are assigned pursuant to what benefit is received in the definition of "assigned arrears"; adding the provision that the assignment must have been entered into before October 1, 2009 to the definition of "conditionally assigned arrears" because these arrears will no longer be created under limited assignment; removing "provision of living quarters, school related expenses, clothing or miscellaneous allowance" from the definition of "current obligation" because these obligations are not specifically identified in the ORC and exist in the support enforcement tracking system as sub-orders because of a business need; adding the definition of "debt"; adding the definition of "determination", but also maintaining the term "ordered payment" because the Ohio Title IV-D community is familiar with that term; adding the definition of "past care support", as described in ORC section 3111.13; using the term "public assistance" only regarding OWF or Aid to Families with Dependent Children benefits; removing the definitions of "obligation" and "support order" because they are not needed; adding distinction in the definition of "unassigned pre- assistance arrears" for Title IV-E foster care maintenance cases because these arrears are not created in an FCM waiver case; clarifying that a collection will allocate to interest on unassigned arrears before allocating to interest on assigned arrears; and adding that any remaining funds shall be issued to the obligor when the collection is from unemployment compensation.

·         Rule 5101:12-80-10.1, " Allocation hierarchy for federal income tax refund offset collections," describes the allocation hierarchy for federal income tax refund offset collections.  It replaces OAC rule 5101:12-80-10.1.  Changes from the

rescinded rule include: adding "past care arrears" and "cash medical support arrears" because these obligations are included in this hierarchy; distinguishing between "unassigned conditionally assigned" and "assigned conditionally assigned" arrears; identifying the specific monetary medical support obligations; and changing the word "returned" to "issued" in paragraph (C) because "returned" implies that the funds were previously issued to the obligor.

·         Rule 5101:12-80-10.2, " Prorating support collections," describes how to prorate a support collection when OCS or a CSEA receives a collection, the obligor has more than one support order, and there are no instructions included with the collection or remitter instructions cannot be obtained for apportioning the payment between the support orders.  It replaces OAC rule 5101:12-80-10.2. Changes from the rescinded rule include: replacing the term "eligible" with "qualified" because "eligible" is primarily associated with arrears that were submitted for a federal income tax refund offset collection; specifying that prorated collections are subject to the allocation hierarchies described in OAC rules 5101:12-80-10 and 12-80-10.1; adding an additional case scenario in paragraph (C) per the request of the OCS Payment Analysis and Account Reconciliation Section; clarifying language regarding the proration calculations by using sub-headings within the paragraphs; and adding additional language in paragraph (E) to specify that when the prorated collection is from a federal income tax refund offset collection, the collection shall first be applied to eligible assigned arrears and then to eligible unassigned arrears.

·         Rule 5101:12-80-14, " Limited assignment, PRWORA assignment, and distribution of assigned support collections," describes the provisions of limited assignment and PRWORA assignment and provides related definitions. It replaces part of OAC rule 5101:12-80-14 and part of OAC rule 5101:12-80-14.1. Changes from the rescinded rule include: clarifying that the rule and its supplemental rules do not apply to medical support; adding definitions for "assignment period", "limited assignment", and "PRWORA assignment"; adding the provisions of limited assignment; distinguishing when an OWF public assistance benefit period is subject to limited assignment and when it is subject to PRWORA assignment; and specifying that limited assignment and PRWORA assignment are only applicable to an OWF assignment and are not applicable to an FCM or Medicaid assignment.

·         Rule 5101:12-80-14.1, " Distribution of assigned support in a Title IV-D public assistance case," describes distribution in a Title IV-D public assistance (i.e. OWF) case. It replaces part of OAC rule 5101:12-80-14.1. Changes from the rescinded rule include: moving definitions to proposed rule 5101:12-80-14; and moving language regarding FCM cases to proposed rule 5101:12-80-14.2.

·         Rule 5101:12-80-14.2, " Assignment and distribution in a Title IV-D/Title IV-E foster care maintenance case," describes the provisions of assignment and distribution in a Title IV-D/Title IV-E foster care maintenance case. It replaces part of OAC rule 5101:12-80-14.1. Changes from the rescinded rule include: adding definitions for "FCM non-waiver case", "FCM waiver case", "grant amount", "actual IV-E grant amount", and "average IV-E grant amount"; and

clarifying that all child support is assigned and retained by the state during the FCM assignment period for an FCM waiver case.

Copies of the proposed rules are available, without charge, to any person affected by the rules at the address listed below.  The rules are also available on the internet at  http://www.registerofohio.state.oh.us/.

A public hearing on the proposed rules will be held at the date, time, and location listed at the top of this notice. Either written or oral testimony will be taken at the public hearing. Additionally, written comments submitted or postmarked no later than the date of the public hearing will be treated as testimony.

Requests for a copy of the proposed rules or comments on the rules should be submitted by mail to the Ohio Department of Job and Family Services, Office of Legal Services, 30 East Broad Street, 31st Floor, Columbus, Ohio 43215-3414, by fax at [phone], or by e- mail at [e-mail].