House of Representatives

HB 2095

DES; child support enforcement

Sponsors: Representatives Hershberger, O'Halleran, Carruthers, et al.

X	Committee on Human Services
x	Committee on Judiciary
	Committee on Appropriations
	Caucus and COW
	Third Read
	As Passed the House

HB 2095 allows support payments currently collected by the state to pass through to a child ineligible for TANF cash assistance. It modifies the administrative review process for support distributions and disbursements. Extends the timeframe 30 days for which the clearinghouse has to locate an obligee before returning payments back to the obligor. The bill authorizes DES to amend court orders in prescribed foster care cases and pass child support payment to the foster care agency.

History

Current law requires the support payment clearinghouse or Clerk of the Court to return support payments to the obligor if after three months the person to whom the payments are ordered is unable to be located. HB 2095 extends this period of time to 120 days and designates the return of the payment and all other payments to the obligor unless there is agreement of the obligor to pay assigned arrears and state owed debts.

The proposed legislation modifies the administrative review procedures and timeframes for an obligee to contest the distribution or disbursement of support payments as well as final determinations. Further, the bill clarifies DES’ role upon receiving such requests, authorizes DES to request additional information when making determinations and establishes specific timeframes for DES responses.

Current law states that when a family goes onto TANF cash assistance, the family must assign the rights of support over to the state. Therefore, any child support payments go directly to the state in return for cash assistance. The bill provides for DES to pass child support payments through to a family receiving TANF cash benefits to any child who is currently excluded from being TANF eligible. TANF monies are one-third state monies and two-thirds federal monies. The bill allows for an equal amount of state monies to pass through to the ineligible TANF child and, upon obtaining a federal waiver, allows for an equal amount of the federal portion to be passed through to the child as well.

Finally, the bill authorizes DES to amend child support orders in foster care cases with regards to maintenance payments where the rights to support have been assigned to the state. If the child support order covers more than one child, the bill requires DES to determine the amount to be distributed to the state by dividing the court ordered support amount by the number of children in a court order.

Provisions

· Increases the time period in which the clerk or clearinghouse, if after making reasonable efforts to locate the obligee shall deliver support, child support, or spousal maintenance payments [payments] from three months to 120 days.

· Stipulates the clerk or clearinghouse shall return undeliverable payments and all other unassigned payments to the obligor after 120 days from the date the first payment is returned undeliverable, unless there is an agreement to pay assigned arrears and other state owed debts.

· Allows an obligee to contest the disbursement of support payments by Department of Economic Security or its agent [Department]

· Permits the obligor, obligee or caretaker to contest the disbursement of support to a non-custodial person other than the state.

· Clarifies that upon receipt of a review request, the Department shall send notice acknowledging the request within 10 business days and shall issue a written determination within 45 business days from the date receipt was acknowledged.

· Allows the Department, when conducting a review, to initiate a request for any other necessary information in making a determination and provides for the written determination in such cases to be issued within 45 days after receipt of the requested information.

· Specifies that if information is not received within 30 business days after the request, the Department shall complete the final written determination within 10 business days after the due date for receipt of additional information based on the information available.

· Adds the definitions for business day, obligee, and Title IV-D to statute relating to the reimbursement of public assistance [A.R.S. §46-402] and aligns the definitions to match those in statute relating to child support [A.R.S. §25-500].

· Authorizes DES, when the state has been assigned the right of foster care payments, to determine that amount to be distributed to the state by dividing the court ordered support amount by the number of children in the court order, if the child support order covers more than one child.

· Authorizes DES to distribute to the obligee the amount equal to the state’s share of support received for a child that is ineligible for cash assistance.

· Authorizes DES to divide the support order by the number of children in the court order, if the child support order covers additional children and specifies that DES shall distribute an equal amount of the state’s share to the obligee of the prorated amount to any child ineligible for cash assistance.

· Replaces reference of a custodial parent with an obligee and allows an obligee who disagrees with the distribution or disbursement of support payments to request an administrative review within 30 business days after DES has notified the obligee of the distribution and disbursement of support received for the prior period.

· Requires DES to send notice to the obligee each month in Title IV-D cases with a receipt of support.

· Stipulates that Title IV-D cases uninvolved with public assistance and public assistant cases that have no receipts of support for the last quarter, DES is required to send written notice to the obligee regarding distribution and disbursement of support only for the most recent quarter of the year.

· Allows the obligee 30 business days after the date of that notice to submit a written request of an administrative review.

· Requires the Department to send written notice acknowledging receipt of an administrative review request to the obligee within 10 business days.

· Requires DES to indicate in writing if the Department needs addition information from the obligee or other sources to respond to the review request.

· Specifies the Department shall issue a written determination within 30 business days after the notice acknowledging receipt of a review request or no later than 30 business days after additional information is received.

· Specifies that if information is not received within 30 business days after the request, the Department shall complete the final written determination within 10 business days after the due date for receipt of additional information based on the information available and send a copy by first class mail to the obligee.

· States an obligee shall make any appeal of the Department’s determination in writing in accordance to DES’ hearings and appeals process within 30 business days after the written determination date. Allows an obligee to appeal DES’ final determination in the court of appeals [A.R.S. § 41-1993].

· Authorizes DES to distribute to the obligee the equal amount of the federal share of support received for a child that is ineligible for cash assistance.

· Authorizes DES to divide the support order by the number of children in the court order, if the child support order covers additional children and specifies that DES shall distribute an equal amount of the federal share to the obligee of the prorated amount to any child ineligible for cash assistance.

· Stipulates that this act does not become effective unless the federal government grants the applicable waiver.

· Requires the Director of DES to notify Legislative Council in writing the date the waiver is granted.

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· 45th Legislature

· Second Regular Session 3 February 1, 2002

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