5101:12-55-10 Financial institution data match program.

 

 

 

5101:12-55-10             Financial institution data match program.

 

 

 

(A)The federal Personal Responsibility and Work Opportunity Reconciliation Act of 1996, Pub. L. No. 104-193, 110 Stat. 2105 (1996), 42 U.S.C. 666(a)(17) January 1, 1998, enacted as sections 3121.74 to 3121.78 and 3123.24 to 3123.38 of the Revised Code, requires that states enter into agreements with financial institutions doing business in the state to conduct quarterly matches of obligors who owe past-due support with funds on deposit in the financial institution.

 

(B)The office of child support (OCS) in the Ohio department of job and family services (ODJFS) is authorized to enter into account information access agreements with financial institutions doing business in this state and with financial institutions doing business in other states.

 

(1)OCS has joined an alliance of states for the purpose of participating in the financial institution data match (FIDM) program with financial institutions doing business in Ohio. The alliance facilitates the use of the FIDM program with a single state financial institution (SSFI) that does business in Ohio and with SSFIs in other states that do business only within the state in which they are located.

 

(2)Responsibility for the data match with multistate financial institutions is with the federal office of child support enforcement (OCSE) by consolidating input from all states into a national file of delinquent obligors known as the federal offset file. The federal offset file only contains obligors in IV-D cases. Therefore, the FIDM program can only be used to enforce a support order in a IV-D case. OCSE sends a single file to multistate financial institutions where the match is conducted. Multistate institutions use forms and instructions developed by OCSE.

 

(C)Definitions.

 

The following definitions are specific to this rule:

 

(1)Access restriction - an encumbrance on an account so that funds within the account may not be withdrawn or transferred.

 

(2)Account - a demand account, checking or negotiable withdrawal order account, savings account, time deposit account, or money-market mutual fund account that can be readily converted to cash without further action.

 

(3)Financial institution (FI) - a bank, savings and loan, thrift, federal or state credit union, benefit association, insurance company, safe deposit company, money-market mutual fund, or similar institution in which a person has funds on deposit.

 

(4)Multistate  financial  institution  (MSFI)  -  a  financial  institution  conducting business in two or more states.

 

 

(5) Multistate financial institution data match (MSFIDM) - an exchange of data between state IV-D programs and an MSFI to match account holders and child support obligors owing past-due support.

(6) Single  state  financial  institution  (SSFI)  - a  financial  institution  conducting business in only one state.

(7) Single state financial institution data match (SSFIDM) - an exchange of data between the Ohio IV-D program and an SSFI to match account holders and child support obligors owing past-due support.

(8) Withdrawal directive - a directive to an FI to withdraw funds from an account and transmit the withdrawn funds to the child support enforcement agency (CSEA). For FIDM purposes withdrawal directive also means that funds may not be withdrawn or transferred by the account holder.

(D)Financial institution agreements, rights, and responsibilities.

(1) Financial institutions that choose to participate in FIDM include banks, savings and loans, federal and state credit unions, benefit associations, insurance companies, safe deposit companies, money-market mutual funds and similar institutions, in which a person who is required to pay child support has funds on deposit that are not exempt under law from execution, attachment, or other legal process.

(2) The  agreements  require  an  FI  to  provide  the  following  information  each calendar quarter:

(a) The account holder's name;

(b) The account holder's address;

(c) The account holder's social security number or taxpayer identification number;

(d)Whether another person has an ownership interest in the account, including a list of all persons having an ownership interest in the account as reflected on the signature card or similar document on file with the FI;

(e) The type of account maintained by the account holder, such as a savings, checking, or money market mutual fund account; and

(f)Any other information agreed to by the parties.

(3) Fee deduction.

An FI that responds to a request or provides information to OCS pursuant to an account information access agreement shall deduct a fee of no more than five dollars for each withdrawal the FI makes from an obligor's account on receipt of a JFS 04055, "Financial Institution Account Withdrawal Directive" (rev. 09/2006).

(4) Access restriction.

An FI shall promptly place an access restriction on the account of an obligor upon receipt of a JFS 04050, "Access Restriction" (rev. 09/2006), from the CSEA. The access restriction shall remain on the account until the FI receives a JFS 04055 or a court or CSEA orders the FI to remove the access restriction. The CSEA shall send a copy of the JFS 04050 to the obligor at the same time the CSEA sends the JFS 04050 to the FI.

(5) The FI shall cooperate with the CSEA's investigation of the obligor's account as described in paragraph (H) of this rule.

An FI and the FI's officers, directors, and employees shall not be subject to criminal or civil liability for disclosing or releasing information concerning an account holder to OCS pursuant to an account information access agreement, or for any other action taken in good faith to comply with an account information access agreement, regardless of whether the action was specifically authorized or described in the agreement.

(E)Confidentiality.

(1) Information obtained from an FI pursuant to an account information access agreement is not a public record for the purposes of section 149.43 of the Revised Code. No person or government entity that obtains information concerning an account holder from an FI pursuant to an account information access agreement shall disclose the information for purposes other than the establishment, modification, or enforcement of a support order.

(2) Whoever violates section 149.43 of the Revised Code may be fined no more than five hundred dollars or imprisoned not more than six months, or both.

(F) Use of information received as a result of the access agreement.

(1) The support enforcement tracking system (SETS) will record data match results from both MSFIs and SSFIs. The data will be sorted by caseload within the county. In addition, SETS will list all individuals whose assets are in an FI in Ohio and list the accounts based on sole account holder, or primary and secondary account holder.

(2) The decision to utilize the FIDM program is at the discretion of the CSEA. The

CSEA's criteria for the use of the FIDM program shall be stated in the county procedural manual.

(G)Access restriction process.

(1) A support order shall not be enforced using the FIDM program until a final and enforceable default determination, as described in rules 5101:12-55-03 to 5101:12-55-03.4 of the Administrative Code, has been made against the obligor. For purposes of the FIDM program, the JFS 04049, "Notice to Obligor of Default and Potential Action" (05/2005), must have been issued on or after August 17, 1999. The CSEA shall review the default list within SETS to ensure that the default determination has been made against the obligor prior to initiating an enforcement action using FIDM.

(2) The CSEA shall determine whether the account is with an FI conducting business in Ohio. The CSEA shall make that determination by comparing the name of the FI on the match file with the list of FIs conducting business in Ohio provided by OCS.

(a) When the account is with an FI conducting business in Ohio, the CSEA shall send the JFS 04050 by first-class mail to the FI at the address given on the match file. A copy of the JFS 04050 shall simultaneously be sent by first-class mail to the obligor.

(b) When the FI does not conduct business in Ohio, the CSEA shall proceed as described in paragraph (O) of this rule.

(3) When at any point in the enforcement process described in this rule the obligor is no longer in default, the CSEA shall order the financial institution to release the access restriction on all funds in the account. If the obligor is determined to be in default at a later date, enforcement action using the FIDM program may again be considered.

(4) When at any point in the enforcement process described in this rule the CSEA determines that funds in the account represent supplemental security income (SSI ), or that a legal restriction exists on the account that prevents the obligor from withdrawing the funds, the CSEA shall order the FI to release the access restriction on the funds in the account that represent SSI or on the funds that are legally restricted.

(5) When the CSEA determines that enforcement action should stop or be modified pursuant to paragraphs (G)(4) and (G)(5) of this rule, the CSEA shall send a JFS 04051, "Release of Access Restriction" (rev. 09/2006), by first-class mail to the FI to which the CSEA had previously sent the JFS 04050. A copy of the JFS 04051 shall be simultaneously sent by first-class mail to the obligor.

(6) A CSEA may use the FIDM program to enforce a support order against an

obligor who filed for bankruptcy protection on or after October 17, 2005. When an obligor filed for bankruptcy protection prior to that date, the CSEA may use the FIDM program to enforce the support order only when the bankruptcy has been discharged or other relief from bankruptcy protection has been secured by the CSEA.

(7) An access restriction remains in effect until a withdrawal is made pursuant to a withdrawal directive by a court or CSEA, or a court or CSEA orders that the access restriction be removed.

(H)CSEA investigation of account.

(1) When the CSEA elects to use the FIDM program to enforce a support order, the CSEA shall, no later than five business days from the date on which the FIDM match information is made available to the CSEA through SETS, investigate and determine the amount of funds in the account that is available to satisfy the obligor's arrearages under a support order.

(2) When the CSEA elects to proceed to enforce the support order using the FIDM program, the CSEA shall issue the JFS 04055 to the obligor by regular mail.

(I)Issuing the JFS 04052.

(1) When a CSEA finds that a person other than an obligor has an ownership interest in an account, the CSEA shall send the JFS 04052, "Notice to Person, Other than Child Support Obligor, Having Ownership Interest in an Account" (rev. 09/2006), by first-class mail to that person at an address for that person contained in records of the FI. When the address of that person is not contained in records of the FI, the CSEA shall send the JFS 04052 to that person in care of another person whose address is contained in records of the FI concerning the account.

(2) The JFS 04052 shall contain both of the following:

(a) A statement of the date the JFS 04052 is sent, that another of the account holders is an obligor under a support order, the name of the obligor, that the support order is in default, the amount of the arrearage owed by the obligor as determined by the court or CSEA, the amount that will be withdrawn, the type of account from which the amount will be withdrawn, and the name of the FI from which the amount will be withdrawn; and

(b) A statement that the person may object to the withdrawal by filing with the CSEA, no later than ten days after the date on which the JFS 04052 is sent, a written request for an administrative hearing to determine whether any amount contained in the account is the property of the person to whom the JFS 04052 is sent and should not be subject to the

withdrawal directive.

(J) Time frame for requesting administrative hearing.

(1) The joint account owner shall have ten days from the date the JFS 04052 is sent to object to the withdrawal by filing with the CSEA that sent the JFS 04052 a written request for an administrative hearing to determine whether any amount contained in the account is the property of that person and should not be subject to the JFS 04055.

(2) When the joint account owner fails to file a timely request for an administrative hearing, the CSEA shall send a JFS 04055 to the FI. The CSEA shall send a copy of the JFS 04055 to the obligor.

(K)Conducting the administrative hearing.

(1) When the joint account owner requests a hearing in a timely manner, the CSEA that sent the JFS 04052 shall conduct the administrative hearing no later than ten days after the date the person files the request for the hearing. No later than five days before the date the hearing is to be conducted, the CSEA shall send the JFS 04053, "Notice of Administrative Hearing in Regard to Account Ownership" (rev. 09/2006), to the person who requested the hearing.

(2) At the hearing, the CSEA shall determine whether any amount contained in the account is the property of the person who filed the objection. That person may present testimony and evidence at the hearing only in regard to the issue of whether and how much, if any, of the amount contained in the account is the property of the person and should not be subject to the withdrawal directive. When the CSEA determines that any amount contained in the account is the property of the person, the CSEA shall determine that amount. The CSEA shall send the JFS 04054,"Notice of Determination on Amount of Ownership" (rev. 09/2006), to the person who filed the objection.

(L)Determinations made by the CSEA.

(1) When a CSEA determines at the administrative hearing that the total amount in an account is the property of a person who is not the obligor from whom payment is sought, it shall order the FI to release the access restriction on the account by sending a JFS 04051, "Release of Access Restriction" (rev. 09/2006), to the FI. The CSEA shall send a copy of the JFS 04051 to the obligor.

(2) When the CSEA determines that some of the funds in the account are the property of the person, it shall order the FI to release the access restriction on the amount in the account that is the property of the other person by sending a JFS 04051 to the FI. The CSEA shall send a copy of the JFS 04051 to the obligor.

(3) The CSEA shall issue to the FI a JFS 04055 for the remaining funds unless, no later than ten days after the CSEA makes its determination, the person files a written motion with the court of common pleas of the county served by the CSEA for a hearing to determine whether any amount contained in the account is the property of the person.

(M) Hearings held and determinations made by the court.

(1) If the joint account owner files a timely motion with the court, the court is required to hold a hearing on the request no later than ten days after the request is filed. No later than five days before the date on which the hearing is to be held, the court is required to send the person written notice by ordinary mail of the date, time, place, and purpose of the hearing. The hearing is limited to a determination of how much, if any, of the amount contained in the account is the property of the person.

(2) If the court determines that all of the funds in the account are the property of the person to whom the JFS 04052 was sent, the court is required to order the FI to release the access restriction on the account and to take no further enforcement action on the account.

(3) If the court determines that some of the funds in the account are the property of the person to whom the JFS 04052 was sent, the court is required to determine that amount, order the FI to release the access restriction on the account in that amount, and order the CSEA to take no further enforcement action on those funds.

(4) If the court determines that any of the funds in the account are not the property of the person to whom the JFS 04052 was sent, the court is required to issue a withdrawal directive.

(N)Withdrawal directive.

(1) When a CSEA proposes to intercept an obligor's funds in an account in an FI, the CSEA shall issue a JFS 04055 to the FI. The CSEA shall issue a copy of the JFS 04055 to the obligor.

(2) In accordance with section 3123.37 of the Revised Code, the JFS 04055 is required to contain the following information:

(a) The name, address, and social security number or taxpayer identification number of the obligor;

(b) A statement that the obligor has been determined to be in default under a support order;

(c) The amount of the arrearage owed by the obligor as determined by the court or CSEA; and

(d)The amount of funds that are to be withdrawn from the account and the type of account from which the funds are to be withdrawn.

(3) On receipt of a JFS 04055, an FI is required to withdraw the amount specified from the account described in the JFS 04055 and pay it to child support payment central (CSPC).

(O)Procedures to follow when the FI does not conduct business in Ohio.

(1) When the IV-D case is in Ohio but the FI identified on the match file does not conduct business in Ohio, the CSEA will assume the role of the "requesting state" and the state in which the FI conducts business will assume the role of the "assisting state." The CSEA shall request assistance from the assisting state. The assisting state will not open a IV-D case and neither state will consider the case to be an interstate case.

(2) The CSEA shall mail the JFS 04049 to the obligor unless the CSEA has already provided the obligor with the JFS 04049 for the current period of default.

(3) The CSEA shall determine the assisting state's requirements concerning access restrictions and withdrawal directives by referring to state-specific data provided by OCS. Using OMB 0970-0085, "Transmittal # 3 - Request for Assistance/Discovery" (expiration date 1/31/2008), the CSEA shall request that the assisting state impose an access restriction and issue a withdrawal directive.

(4) The CSEA shall provide the assisting state with the following information and any other information necessary for the assisting state to respond to the CSEA's request:

(a) The account number and the name and address of the FI by providing a hard copy of the match file;

(b) The amount to be withdrawn; and

(c) The amount of arrears and proof that due process under Ohio law has been completed by providing the assisting state with a copy of the JFS 04049 that was mailed to the obligor.

(P) Procedures to follow when the IV-D case is in another state and the FI conducts business in Ohio.

(1) When the IV-D case is in another state and the FI does not conduct business in

that other state but conducts business in Ohio, Ohio will assume the role of the "assisting state" and the other state will assume the role of the "requesting state." The requesting state will request assistance from Ohio through the ODJFS interstate central registry, which will forward the request to the CSEA located in the same Ohio county as the FI. The CSEA shall not open a IV-D case and neither state will consider the case to be an interstate case.

(2) The requesting state will identify the account, the FI, the arrears amount, the withdrawal amount, and will certify completion of due process under the requesting state's laws.

(3) The CSEA shall promptly send the JFS 04050 by first-class mail to the FI. The CSEA shall simultaneously send a copy of the JFS 04050 to the obligor by first-class mail.

(4) After mailing the JFS 04050, the CSEA shall promptly determine whether any person other than the obligor has ownership interest in the account.

(a) When the CSEA finds that the obligor is the only person having ownership interest in the account, the CSEA shall promptly send the JFS 04055 by first-class mail to the FI at the address given on the match file. A copy of the JFS 04055 shall simultaneously be sent by first-class mail to the obligor.

(b) When the CSEA finds that a person other than the obligor has an ownership interest in the account, the CSEA shall promptly send to that person the JFS 04052. When a hearing is requested, the CSEA shall send a JFS 04053 to the person who requested the hearing. The person shall be permitted to participate in the hearing by telephone or by audiovisual or other electronic means accessible to the CSEA, rather than be physically present. Testimony and evidence shall be presented and accepted under terms consistent with the terms outlined in section 3115.27 of the Revised Code. If appropriate, the JFS 04055 shall be issued. The CSEA shall simultaneously send the JFS 04055 by first-class mail to the FI and a copy of the JFS 04055 by first-class mail to the obligor.

Replaces:                                                     5101:1-30-14

Effective:                                                     10/02/2006

R.C. 119.032 review dates:                         10/01/2011

CERTIFIED ELECTRONICALLY

Certification

09/18/2006

Date

Promulgated Under:                           119.03

Statutory Authority:                           3121.78, 3125.25

Rule Amplifies:                                  3121.74, 3121.75, 3121.77, 3121.78, 3123.24,

3123.25, 3123.26, 3123.27, 3123.28, 3123.29,

3123.30, 3123.31, 3123.32, 3123.33, 3123.34,

3123.35, 3123.36, 3123.37, 3123.38

Prior Effective Dates:                         8/17/99, 10/1/01