House of Representatives

HB 2095

DES; child support enforcement

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

DP	Committee on Human Services
dp	Committee on Judiciary
w/d	Committee on Appropriations
DP	Caucus and COW
X	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. The bill modifies the administrative review process for support distributions and disbursements and extends the timeframe for which the clearinghouse has to locate an obligee before returning payments back to the obligor. Finally, HB 2095 authorizes DES to amend court orders in prescribed foster care cases and pass child support payments to the foster care agency.

Current Status

HB 2095 passed the Human Services and Judiciary Committees unamended and was placed on the Consent Calendar.

History

Current law requires the support payment clearinghouse or Clerk of the Court [Clerk] 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 collected go directly to the state. 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.

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

Provisions

Increased Time for Locating Obligee

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

· Requires the Clerk or clearinghouse to 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.

Administrative Review Procedures and Timeframes

· Allows the Department, when conducting a review, to initiate a request for any other necessary information in making a determination.

· Permits parties in an administrative review 30 business days instead of 10 to submit additional information.

· Adds the definitions for business day, obligee, and Title IV-D to reimbursement of public assistance statutes and aligns the definitions to match those in child support statutes.

· 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 support received.

· Modifies the frequency DES shall send written notice of support received to the obligee and specifies timeframes for administrative review requests.

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

· States that an obligee has 30 business days after the written determination date to appeal in accordance to the DES hearings and appeals process. Allows an obligee to appeal the final determination in the court of appeals [A.R.S. § 41-1993].

Distribution of Support

· Allows DES to distribute to the obligee the amount equal to the state share [one-third] of support received for a child that is ineligible for cash assistance beginning on July 1, 2003.

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

· Allows DES to distribute to the obligee the amount equal of the federal share [two-thirds] 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 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 the federal share of support for a child ineligible for cash assistance is effective only upon approval of federal waiver.

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

Distribution of Assigned Support in Foster Care Cases

· 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 order covers more than one child.

Miscellaneous

· Makes technical and conforming changes.

HB 2095 passed the Human Services Committee unamended.

HB 2095 passed the Judiciary Committee unamended.

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45th Legislature

Second Regular Session 3 March 27, 2002

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