12E-1.0051. Undistributable Collections

(1) Introduction. The Department is responsible for distribution of child support payments under Section 409.2558, F.S. When the Department is unable to disburse the payment to the final intended recipient, the provisions of this rule apply.

(2) Definitions. For purposes of this rule:

(a) “Final intended recipient” means a parent, caregiver, a parent’s or caregiver’s estate, or a state, country, or agency providing Title IV-D services, including agencies administering programs under Title IV-A (Temporary Assistance for Needy Families), Title IV-E (Foster Care), or Title XIX (Medicaid) of the Social Security Act.

(b) “Obligee” means the person to whom support payments are made pursuant to an alimony or child support order.

(c) “Obligor” means a person who is responsible for making support payments pursuant to an alimony or child support order.

(d) “Undistributable collection” means a support payment received by the Department that the Department determines cannot be distributed to the final intended recipient, as defined by Section 409.2554(17), F.S.

(3) Undistributable Collection Processing.

(a) The Department will consider a collection undistributable when:

1. The final intended recipient is deceased and the Department cannot locate the individual’s estate or the estate does not claim the funds.

2. The final intended recipient cannot be found after making reasonable efforts to locate the individual.

a. Reasonable efforts to locate a final intended recipient are considered complete when, at a minimum, searches of the Department’s automated case management computer system, available electronic data exchange information from other state and federal agencies, and information available from a contractor providing location services to the Department, if any, have taken place and the Department has not found the individual.

b. If the searches find the final intended recipient, the Department disburses the payment.

c. If the searches do not find the final intended recipient, the payment is considered undistributable.

(b) The Department will process the undistributable collections in priority order as provided in Section 409.2558(3), F.S.

(4) Uncashed Checks for Less Than Ten Dollars.

(a) When the Department has sent one or more paper checks totaling less than ten dollars to the final intended recipient, and the individual has not cashed the check within 180 days of the issue date and does not have an established method of electronic disbursement, the Department will hold the collection for processing as program income.

1. The Department sends a Notice of Uncashed Check (CS-FM166) to the final intended recipient’s last known address by regular mail. The notice states the Department’s intention to process the collection as program income unless the individual contacts the Department to have the collection reissued. Form CS-FM166, (http://www.flrules.org/Gateway/reference.asp?No=Ref-14806), is incorporated herein by reference, effective 11/22.

2. If the final intended recipient does not contact the Department within 30 days of the date of the notice, the Department will process the collection as program income, crediting the federal share of the collection to the federal government and the state share of the collection to the General Revenue Fund.

3. If the final intended recipient contacts the Department after the collection has been processed as program income, the Department will handle the request to claim the collection as provided in subsection (6).

(5) Undistributed Collections for Ninety-Nine Cents or Less.

(a) If the Department has sent one or more paper checks totaling ninety-nine cents or less to a final intended recipient, the recipient has not cashed the check(s) within 180 days of the issue date on the check(s), the collection(s) is the only remaining payment due to the final intended recipient, and the individual does not have an established method of electronic disbursement, the Department will process the collection as program income.

(b) If the Department identifies undistributed collections totaling ninety-nine cents or less on a closed case and the collection is the only remaining collection due to the final intended recipient, the Department processes the collection as program income without attempting to locate the final intended recipient.

(6) Claming Undistributable Collections.

(a) The final intended recipient may claim undistributable collections retained as program income. The individual may not claim an undistributable collection if the collection was applied to bad check charges because the obligor’s payment is returned to the Department for insufficient funds, overpayments, state-assigned arrears, administrative costs, other cases in which the obligor owes past-due support, or the collection was returned to the obligor. The individual may contact the Department to request the collection be disbursed.

(b) The final intended recipient must prove they are entitled to the collection by giving his or her name, mailing address, and other case or demographic information as needed for the Department to verify the individual’s identity.

(c) The Department will review the information provided and respond in writing to approve or deny the request.

1. If the request is approved, the Department will disburse the collection to the final intended recipient.

2. If the request is denied, the Department will mail the Request for Disbursement Denied (CS-FM127) to the final intended recipient. Form CS-FM127 (http://www.flrules.org/Gateway/reference.asp?No=Ref-14807) is incorporated herein by reference effective 11/22.

3. A final intended recipient may file a petition for an administrative hearing to contest the Department’s decision to deny a request to claim a collection considered undistributable by the Department. A petition for an administrative hearing must be received by the Department of Revenue, Child Support Program, Deputy Agency Clerk, within 20 calendar days from the mailing date of Form CS-FM127. Administrative hearings are conducted pursuant to Chapter 120, F.S.

(6) Forms. Members of the public may get a copy of the forms used in this rule chapter, incorporated by reference, without cost, by writing to the Department of Revenue, Child Support Program, Attn.: Forms Coordinator, P.O. Box 8030, Tallahassee, Florida 32314-8030.

Rulemaking Authority 409.2557(3)(j), 409.2558(3)(a), 409.2558(9) FS. Law Implemented 409.2558(3), 409.2558(5) FS. History–New 10-24-11, Amended 10-26-22.