PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following proposed rule:
Proposed Action:
Amendment of sections 346.2, 347.12, 347.17, 347.25, 352.15, 352.22, 352.31 and 369.1; addition of section 300.13; and repeal of sections 347.2 and 347.13 and addition of new sections 347.2 and 347.13 to Title 18 NYCRR.
Statutory authority:
Social Services Law, sections 20(3)(d), 34(3)(f), 111-a, 111-c(2)(a), (d), 131-a(8)(a)(v), 158(5), (6)(i), 348(2) and (3); Federal Social Security Act, sections 408(a)(3) and 457; Code of Federal Regulations, title 45, sections 302.32, 302.50, 302.51, 302.52 and 303.72; Federal Deficit Reduction Act of 2005 (P.L. 109-171)
Subject:
Child Support Program.
Purpose:
Amend regulatory requirements concerning the distribution and disbursement of child support collections.
Substance of proposed rule (Full text is posted at the following State website:www.otda.ny.gov):
This is a general summary of the proposed rule text concerning the distribution and disbursement of support collections. The full rule text is posted at the following State website: www.otda.ny.gov.
A new section 18 NYCRR § 300.13 would be added reflecting the requirements of 18 NYCRR § 347.25. Both sections address desk reviews of the distribution and disbursement of support collections.
The amendment to 18 NYCRR § 346.2 would update a cross-reference to 18 NYCRR § 347.17. Both of these sections concern support services for individuals who are not eligible for public assistance and care or foster care.
The current section 18 NYCRR § 347.2 would be repealed, and a new section § 347.2 would be added to provide definitions for 18 NYCRR Part 347. The new definitions would conform to federal requirements and provide consistency throughout Part 347.
The amendments to 18 NYCRR § 347.12 would address reporting support collections for public assistance, medical assistance-only and foster care cases. These amendments are needed, in part, to reflect references to the revised 18 NYCRR § 347.13.
The following sections of 18 NYCRR would be added or amended to provide consistency with Title IV-D of the federal Social Security Act and with State options provided by the Deficit Reduction Act of 2005: § 347.13 addressing the distribution and disbursement of support collections; § 352.15 addressing support payments; § 352.22 addressing noncountable income and resources; § 352.31 addressing estimates of need and application of income; and § 369.1 addressing applications for or receipt of public assistance as an assignment to the State and the social services districts of rights to support.
The amendments to 18 NYCRR § 347.17 would update a cross-reference and provide guidance for the support collection units whenever an individual in receipt of services becomes ineligible for public assistance and care or foster care. The amendments address notice requirements and the continuation of services.
The amendments to 18 NYCRR § 347.25 would update the regulations regarding the desk review of the distribution and disbursement of support collections. The desk review process is an accounting of the distribution and disbursement of support collections made on behalf of a current or former recipient of public assistance who is or was receiving child support enforcement services.
Text of proposed rule and any required statements and analyses may be obtained from:
Richard P. Rhodes, Jr., New York State Office of Temporary and Disability Assistance, 40 North Pearl Street, 16C, Albany, New York 12243-0001, (518) 486-7503, email: richard.rhodesjr@otda.ny.gov
Data, views or arguments may be submitted to:
Same as above.
Public comment will be received until:
45 days after publication of this notice.
Regulatory Impact Statement
1. Statutory authority:
Social Services Law (SSL) § 20(3)(d) authorizes the Office of Temporary and Disability Assistance (OTDA) to promulgate regulations to carry out its powers and duties.
SSL § 34(3)(f) requires the Commissioner of the OTDA to establish regulations for the administration of public assistance and care within the State. Chapter 41 of the Laws of 2012 amended SSL § 95 to change the name of the food stamp program to the supplemental nutrition assistance program.
SSL § 111-a requires the OTDA to promulgate regulations necessary to obtain and retain approval of its child support state plan, required to be submitted to the Department of Health and Human Services by Part D of Title IV of the Federal Social Security Act (the “Act”).
Section 408(a)(3) of the Act governs new assignment of rights requirements. Section 408(a)(3) of the Act eliminates the assignment of pre-assistance arrears in new assistance cases, effective October 1, 2009, or as early as October 1, 2008 at state option. Under this requirement, assignments executed on or after the effective date will be limited to the amount of support that accrues during the assistance period, not to exceed the cumulative amount of unreimbursed assistance.
Section 457 of the Act governs the distribution of any support collected under the Child Support Enforcement Program under Title IV-D of the Act. Sections 457(b)(1)(A) and (2)(A) of the Act permit the State to retain rights to support obligations previously assigned.
Title 45 of the Code of Federal Regulations (45 CFR) §§ 302.50, 302.51, 302.52 and 303.72 address assignment of rights to support as a condition of eligibility for assistance under Title IV-A of the Act and distribution of support collections under Title IV-D of the Act. 45 CFR § 302.32 provides for the treatment of child support by the Title IV-A and IV-D agencies.
The Federal Deficit Reduction Act (DRA) of 2005, P.L.109-171, allows states the option to pass through both the federal and state share of certain amounts of assigned support collections to current-assistance families without paying to the Federal government the federal share of the amounts passed through.
SSL §§ 111-c(2)(a), 158(5) and (6)(i), and 348(2) and (3) were amended effective October 1, 2009, and reflect that the scope of an assignment is limited to all rights to support from any other person on behalf of the applicant/recipient, or on behalf of any other family member for whom the applicant/recipient is applying for or receiving public assistance, that accrue during the period that a family receives assistance under the Title IV-A of the Act and state-funded safety net assistance.
SSL §§ 111-c(2)(d) and 131-a(8)(a)(v) were amended to take advantage of the optional provision within DRA, and reflect respective increases to the amount of the pass-through payment and the amount of income disregarded for purposes of determining the standard of need and assistance provided through the public assistance program.
2. Legislative objectives:
It was the intent of the Legislature in enacting the above statutes that OTDA establish rules, regulations and policies so that child support enforcement services are provided to eligible persons to ensure that to the greatest extent possible parents provide financial support for their children.
3. Needs and benefits:
The amendments to 18 NYCRR § 347.13; associated changes to 18 NYCRR §§ 346.2, 347.2, 347.12, 347.17, and 347.25; amendments to 18 NYCRR §§ 352.15, 352.22, and 352.31; the addition of a new conforming provision in 18 NYCRR § 300.13; and amendments to 18 NYCRR § 369.1, are being made as the existing regulations for assignment and distribution of support collections are inconsistent with the revised section 457 of the Act. Effective October 1, 1996, section 302 of the Personal Responsibility and Work Opportunity Act of 1996 (PRWORA), Public Law 104-193, and effective October 1, 2008, section 7301 of the DRA, P.L.109-171, revised section 457 of the Act, which governs the distribution of any support collected under the Child Support Enforcement Program under Title IV-D of the Act. Section 103 of PRWORA and section 7301 of the DRA also revised Title IV-A of the Act, in part, by replacing the assignment of rights provisions contained in former section 402(a)(26) of the Act, effective July 1, 1997, with new assignment of rights requirements in section 408(a)(3) of the Act. And, SSL §§ 111-c(2)(d) and 131-a(8)(a)(v) were amended to take advantage of the optional provision within the DRA which allows states the option to pass through both the federal and state share of certain amounts of assigned support collections to current-assistance families without paying to the Federal government the federal share of the amounts passed through.
45 CFR §§ 302.50, 302.51, 302.52 and 303.72 address assignment of rights to support as a condition of eligibility of assistance under Title IV-A of the Act and distribution of support collections under Title IV-D of the Act. 45 CFR § 302.32 provides for the treatment of child support by the Title IV-A and IV-D agencies. To the extent that the regulation at 18 NYCRR § 347.13 is inconsistent with new section 457 of the Act, it is superseded by the new statutory requirements. 18 NYCRR §§ 352 and 369 in part, are inconsistent with the new section 457 of the Act.
In addition, the regulations need revision to comply with the child support distribution requirements set forth in Federal Office of Child Support Enforcement Action Transmittals (AT) 97-17, 98-24, and 07-05. The timeframes for distribution of amounts of child support collected currently set forth in state regulations are inconsistent with Federal regulations. Failure to comply with these mandatory timeframes may result in fiscal penalties imposed by the Federal government on the State.
Existing regulations at 18 NYCRR §§ 347.13, 352.15, 352.22, 352.31, and 369.1, need revision to delete and revise any inconsistent requirements. Related amendments are necessary to 18 NYCRR §§ 347.2 and 347.12 reflecting references to revised sections within 18 NYCRR § 347.13. Additionally, amendments to 18 NYCRR §§ 346.2, 347.17 and 347.25 are included reflecting conforming changes to revisions made to 18 NYCRR § 347.13 under SSL §§ 111-c(2)(d) and 131-a(8)(a)(v). And new regulation 18 NYCRR § 300.13 is added reflecting conforming requirements with procedures in relation to 18 NYCRR § 347.25.
4. Costs:
There are no new costs associated with the amendments to the regulations.
5. Local government mandates:
Child support distribution is a function of the State’s Automated Support Collection Unit (ASCU), a part of the computerized Child Support Management System. No new or additional requirements will be imposed on social services districts.
6. Paperwork:
No new or additional requirements will result from the amendments to the regulations.
7. Duplication:
The proposed amendments do not duplicate, overlap or conflict with any existing State or federal statutes or regulations.
8. Alternatives:
No alternatives were considered since the proposed amendments are required in accordance with the aforementioned federal statutes and requirements.
9. Federal standards:
The proposed amendments do not exceed federal minimum standards for the same subject.
10. Compliance schedule:
The requirements are now operational within the Child Support Management System. The State and the social services districts are in compliance with the proposed amendments and their respective effective dates.
Regulatory Flexibility Analysis
1. Effect of rule:
Each of the 58 social services districts will be affected by the proposed regulatory amendments.
2. Compliance requirements:
Social services districts will be required to comply with the proposed amendments. Given that the changes to the regulations conform State regulations to federal regulations and State law, and clarify the timing of affirmative action needed on a case, no new reporting or recordkeeping is required by the social services districts. The NYS Division of Child Support Enforcement (DCSE), on behalf of the social services districts, will continue to provide for assignment and distribution of collections, meeting federal and State requirements, through its computerized Child Support Management System (CSMS).
3. Professional services:
Given that the changes are mandatory and implemented in a systematic nature, child support enforcement and public assistance units will not need to hire additional staff.
4. Compliance costs:
This regulation will not result in increased administrative costs for social services districts. Assignment and distribution of collections continue under CSMS which is monitored by the DCSE on behalf of the social service districts. DCSE continues to assume all administrative costs for the systematic programming for assignment and distribution. Aside from systematic changes within assignment and distribution to meet federal and state requirements, the rest of this process is unchanged.
5. Economic and technological feasibility:
DCSE continues to assume all administrative costs for the systematic programming for assignment and distribution on behalf of the social services districts. Technological feasibility is not a concern for the social services districts since DCSE maintains the systematic programming.
6. Minimizing adverse impact:
The proposed regulatory amendment will not have an adverse impact on small business or local governments since this is a systematic change impacting only the current assignment and distribution programming. Approaches for minimizing adverse economic impact, as suggested in SAPA § 202-b, were not considered since no adverse economic impact is present under the proposed amendment.
7. Small business and local government participation:
The proposed changes regarding the required systematic changes to assignment and distribution were discussed with social services districts’ child support enforcement and temporary assistance personnel. No specific concerns were raised about the statutory requirements. Social services districts did raise concerns about changes to standing manual processes which were addressed and clarified in policy and related discussions.
Rural Area Flexibility Analysis
1. Types and estimated numbers of rural areas:
The proposed regulations will affect 44 rural social services districts in the State.
2. Reporting, recordkeeping and other compliance requirements; and professional services:
Social services districts, including those in rural areas, will be required to comply with the proposed amendments. Given that the changes are technical and do not change but may simplify existing procedures, child support enforcement units should not need to hire additional staff.
3. Costs:
This regulation will not result in increased administrative costs for social services districts.
4. Minimizing adverse impact:
The proposed regulations will not have an adverse impact on social services districts, including those in rural areas.
5. Rural area participation:
The requirements for the assignment and distribution of collections received by the child support program are Federal and State mandates. The proposed amendments will ensure State regulations are consistent with the Federal assignment and distribution requirements, and related State statutory requirements.
The statutes on which these regulation changes are predicated have been discussed with the social services districts in rural areas, including section 408 (a)(3) of the Social Security Act (the “Act”) and related revisions to Social Services Law (SSL) §§ 111-c (2)(a), 158(5) and (6)(i), and 348(2) and (3), regarding the revised assignment of support rights requirements; section 457 of the Act as revised regarding distribution of any support collected; and SSL §§ 111-c(2)(d) and 131-a(8)(a)(v) regarding increases to the amount of the pass-through and the amount of income disregarded.
The Office of Temporary and Disability Assistance and the social services districts have had ongoing discussions regarding these requirements and changes to the State’s Child Support Management System. This regulatory proposal will bring State regulations into compliance with Federal and State requirements and, at the same time, assist social services districts with practical, day-to-day needs.
Job Impact Statement
A job impact statement has not been prepared for the proposed regulatory amendments. It is evident from the subject matter of these amendments that the jobs of child support and public assistance personnel representing the social services districts will not be impacted in any real way by the proposed amendments. The proposed amendments to 18 NYCRR §§ 347.13, 352.15, 352.22, 352.31, and 369.1; related amendments to 18 NYCRR §§ 346.2, 347.2, 347.12, 347.17, and 347.25; and new conforming regulation 18 NYCRR § 300.13, will have no impact on jobs and employment opportunities in the State.
