ARIZONA STATE SENATE
Phoenix, Arizona
DES; child support enforcement
Purpose
Makes various changes to procedures, time frames and distribution of child support collections.
Background
Under current federal and State statutes, persons who receive Temporary Assistance for Needy Families (TANF) benefits must assign their child support rights to the State as reimbursement for benefits paid by the State and federal government. Children born while their parents received TANF, during a period of voluntary withdrawal or during a period of sanction are excluded from receiving TANF benefits. This exclusion is known as the "family cap". Federal rules require states to return the federal share of benefits paid to a household, without regard to the child or children to whom the support applies.
The proposed legislation requires DES to pass through the State portion of child support for a child who is not eligible for TANF because of the family cap provision, and requires pass through of the federal portion if an appropriate waiver is approved by the U.S. Department of Health and Human Services (DHHS). Additionally, the bill authorizes allocation of support payments when support is assigned to the State either because a child is in foster care or is part of a household who received TANF benefits subject to the family cap. The bill extends the search time to locate an obligee and allows undeliverable payments to be applied to arrears and other debts owed to the State. Finally, the bill modifies administrative review procedures and time frames to allow more time for persons to respond to notices and requests for additional information and to clarify the responsibilities of DES.
According to the fiscal note prepared by the Joint Legislative Budget Committee staff, the proposed legislation will have a fiscal impact to the state general fund of approximately $95,700 in FY 2003-2004 if the federal government approves the waiver request.
Provisions
1. Extends the time to locate an obligee before payments are returned to the obligor, from three months to 120 days after the first payment is returned as undeliverable.
2. Allows undeliverable payments to be applied to arrears and other debts to the State if the obligor has an agreement to pay arrears and debts.
3. Requires DES to notify the obligee of support receipt, distribution and disbursement on a monthly basis if public assistance is received or quarterly if no public assistance is involved.
4. Clarifies procedures and time frames for requests, notices and appeals related to distribution and disbursement of support.
5. Excludes disbursement to the State from being contested through administrative review.
6. Requires DES or its agent to notify the obligee of an obligor’s request for review of enforcement actions.
7. Extends the time for a person to respond to a request for further information from 10 to 30 days.
8. Allows DES to allocate support between the State and the obligee when at least one child is in foster care and another remains in the home or a child is part of a TANF household but is ineligible for TANF because of the family cap provision.
9. Requires DES to distribute to the obligee the State portion of child support for a child who is not eligible for TANF benefits because of the family cap provision, beginning on July 1, 2003
10. Conditionally requires DES to distribute to the obligee the federal portion of child support for a child who is not eligible for TANF benefits because of the family cap provision, beginning on July 1, 2003, if the appropriate waiver is granted by DHHS. Requires DES to notify the director of the Arizona Legislative Council when the federal waiver is approved
11. Contains definitions.
12. Makes technical and conforming changes.
13. Provides for a general effective date unless otherwise noted.
House Action
HS 2/5/02 DP 7-0-1-2-0
JUD 2/5/02 DP 9-0-0-1-0
3rd Read 3/26/02 58-0-2-0
Prepared by Senate Staff
April 1, 2002