The purpose of the proposed amendments to Rule 12E-1.012, F.A.C. (Consumer Reporting Agencies) is to change the dollar threshold used in determining which cases are eligible to be reported to consumer reporting agencies, provide a definition for the ...

DEPARTMENT OF REVENUE
Division of Child Support Enforcement

RULE NO: RULE TITLE
12E-1.012: Consumer Reporting Agencies
PURPOSE AND EFFECT: The purpose of the proposed amendments to Rule 12E-1.012, F.A.C. (Consumer Reporting Agencies) is to change the dollar threshold used in determining which cases are eligible to be reported to consumer reporting agencies, provide a definition for the term “delinquency” that supports the new threshold, amend the notice provision, and create criteria that exclude recipients of temporary cash assistance and Supplemental Security Income (SSI) benefits from having their overdue support reported. The amendments create a written agreement provision under which the department will forego reporting an obligor’s overdue support to consumer reporting agencies for as long as the obligor complies with an agreed payment plan. The amendments change the contest provision to require an obligor to have an informal review with department staff before the obligor can request an administrative hearing.
The effect of these amendments is to change the eligibility factors for reporting cases to consumer reporting agencies, give obligors an ability to opt out of being reported to consumer reporting agencies by complying with a payment plan, and change the contest provision to allow disputes to be resolved informally.
SUMMARY: The proposed amendments change the criteria used to determine whether a noncustodial parent’s overdue support qualifies to be reported to consumer reporting agencies, require the department to conduct an informal review when the noncustodial parent contests the reporting of overdue support, and allow the department to agree to an alternative outcome in which the noncustodial parent can enter into a written agreement based on a negotiated payment plan in lieu of the support debt being reported.
SUMMARY OF ESTIMATED REGULATORY COSTS: No Statement of Estimated Regulatory Cost was prepared.
Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.
SPECIFIC AUTHORITY: 61.1354(5), 409.2557 FS.
LAW IMPLEMENTED: 61.1354 FS.
A HEARING WILL BE HELD AT THE TIME, DATE AND PLACE SHOWN BELOW:
TIME AND DATE: Friday, July 14, 2006, 1:30 p.m.
PLACE: 4070 Esplanade Way, Room 301, Tallahassee, Florida
NOTICE UNDER THE AMERICANS WITH DISABILITIES ACT: Any person requiring special accommodations to participate in this hearing is asked to advise the Department at least 48 hours before the hearing by contacting Larry Green at [phone]. A person who is hearing-impaired or speech-impaired, should contact the Department by using the Florida Relay Service, 1(800)955-8770 (Voice) and 1(800)955-8771 (TDD).
The Department’s proposed rules are available on the Department’s web site: www.myflorida.com/dor/rules.
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Mike Vergenz, Government Analyst II, Department of Revenue, P. O. Box 8030, Tallahassee, Florida 32314-8030, telephone [phone], e-mail address [e-mail].

THE FULL TEXT OF THE PROPOSED RULE IS:

12E-1.012 Consumer Reporting Agencies.

(1) Definitions. As used in this rule:

(a) through (b) No change.

(c) “Delinquency” means the total amount of support that has come due and is unpaid pursuant to the payment schedule set forth in the support order or the arrearage as adjudicated in the most recent order that established an arrearage.

(2) No change.

(3) Periodic Reporting to Consumer Reporting Agencies.

(a) Pursuant to Section 61.1354(2), F.S., the department shall report periodically to consumer reporting agencies periodically, no more frequently than monthly, the names, social security numbers, and amounts of overdue support owed by obligors.  The initial report concerning an obligor shall not be released until the department has complied with subsection (4) of this rule; subsequent periodic reports which update the amounts owed by an obligor shall be released without complying with subsection (4).

(b) The department shall use the following criteria in determining whether an obligor’s overdue support shall be periodically reported pursuant to this subsection section:

1. (a) Overdue support in the case must equal or exceed two times the monthly obligation, if any, and the delinquency in the case must equal or exceed $5, according to the records of the department. The amount of the overdue support owed by the obligor, according to the records of the department, is greater than $500 and there is a delinquency in the payment of the obligor’s obligation under the order at the time the information is reported;

2. (b) The obligor’s case has not been placed by the department in a closed status.;

3. (c) The obligor’s case has not been referred by the department to another state’s IV-D agency to enforce the support obligation.

4. The obligor is not an SSI recipient.

5.  The obligor does not receive temporary cash assistance.

(c) 1. The department shall not release the initial report concerning an obligor’s overdue support in a case that otherwise meets the criteria in paragraph (b) above if, after the obligor receives notice pursuant to subsection (4) below, the department and the obligor enter into a written agreement establishing a payment plan in accordance with Rule 12E-1.027, F.A.C.  The department may not release the initial report for as long as the obligor complies with the written agreement.

2. If the obligor subsequently fails to make a payment due under the written agreement, the department shall release the initial report and subsequent periodic reports without further notice to the obligor, which shall be stated in the written agreement.

(4) Notice and Right to Hearing.  Prior to releasing a report or providing information concerning an obligor in an instance governed by this section, the following procedures shall be followed:

(a) The department shall give notice to the obligor by regular mail at his or her last known address with Department of Revenue Form CS-EF32, ‘Notice of Intent to Report to Consumer Reporting Agencies’, incorporated herein by reference with a revision date of February 2000.  Members of the public may obtain a copy of this form by a written request to: Department of Revenue, Child Support Enforcement Program, attn.: Forms Coordinator, P. O. Box 8030, Tallahassee, Florida 32314-8030. The notice will inform the obligor that the department will report the amount of overdue support owed by the obligor to consumer reporting agencies, that the department subsequently will report an update of the overdue support amount each month, that reporting the information may affect the obligor’s ability to obtain credit, and that the obligor can avoid the initial report by paying the full amount owed within 15 days.  The notice will also inform the obligor of the department’s duty to release the information, that the obligor may request the department to enter into a written agreement that establishes a payment plan in lieu of reporting the overdue support, and that the obligor has the right to contest the information proposed to be released if the overdue support amount is incorrect or if he or she is not the individual obligated to pay support by requesting an informal review. Form CS-EF32 shall provide notice to the obligor of the intent of the department to release the following information to one or more consumer reporting agencies: the obligor’s name, social security number, and the amount of overdue support owed by the obligor.

(b) An obligor may contest the reporting of his or her overdue support to consumer reporting agencies under subsections (2) and (3) above as follows.  The notice shall inform the obligor of the department’s duty to release the information, and that the obligor has the right to contest the accuracy of the information proposed to be released by requesting a hearing with the department by following the procedures in the next subsection.

1. The obligor must submit a written request for informal review to the department at the address specified in the notice (form CS-EF32) within 25 calendar days after the mailing date of the notice.

2. If a written request for informal review is received timely, the department must conduct the informal review to determine whether reporting to consumer reporting agencies is appropriate. The department must conclude its review within 20 days after receiving the request.

3. The department shall conclude its review by hand delivering or sending to the obligor by regular mail a notice of decision. The notice shall state the amount of overdue support owed and will inform the obligor whether the department intends to report the obligor’s overdue support amount to the consumer reporting agencies. The notice must inform the obligor of the right under Chapter 120, Florida Statutes, to file a petition for administrative hearing to contest the accuracy of the information to be reported. The notice will advise that the obligor may avoid the reporting of the amount of overdue support by either paying the amount in full or by entering into a written agreement within 15 days after receipt of the notice of decision.

4. The obligor may contest the notice of decision by filing with the department at the address indicated in the notice a written petition for administrative hearing within 15 days after receipt of the notice of decision. A petition is filed when it is received by the department, not when it is mailed. If the obligor contests the notice of decision by filing a timely petition, the department may not report information to consumer reporting agencies until the petition is resolved by the obligor withdrawing the petition, by agreement of the parties, or by the entry of a final order authorizing the release of the information following a hearing or other administrative proceeding under Chapter 120, F.S.

(c) To request a hearing with the department, the obligor shall:

1. File a written petition for administrative hearing with the department at the address indicated in the notice within 15 consecutive calendar days of the obligor’s receipt of the notice (Form CS-EF32). A petition is filed when it is received by the department, not when it is mailed.

2. Include in the petition the information required by Rule 28-106.201, F.A.C. if the obligor disputes issues of material fact raised by the notice; or the information required by Rule 28-106.301, F.A.C. if the obligor does not dispute issues of material fact raised by the notice.

(d) If a petition for administrative hearing is received by the department within the 15-day period following the obligor’s receipt of the notice, the department shall not release the information concerning overdue support owed by the obligor until the matter is disposed of by an order dismissing the petition on procedural grounds, by agreement of the parties, or by the entry of a final order authorizing the release of the information following a hearing or other administrative proceeding under Chapter 120, F.S.

(e) If a notice (CS-EF32) is returned to the department undelivered by the U. S. Postal Service, the department shall give a new notice to the obligor in compliance with this section prior to releasing a report or providing information concerning the obligor to consumer reporting agencies.

(5) No change.

(6) Department Requests for Consumer Reports. The department is authorized to request consumer reports from consumer reporting agencies pursuant to Sections 61.1354(3) and (4), F.S., according to the following procedures:

(a) Before the department submits any requests for consumer reports to a consumer reporting agency, the executive director of the Department of Revenue or his or her designee shall certify one-time to the consumer reporting agency that every subsequent request for a consumer report from that agency will meet the requirements set forth in Section 61.1354(3), F.S.

(b) The department shall provide notice to an individual whose consumer report is sought by sending Department of Revenue Form CS-EF15 CS-EF10, ‘Notice of Consumer Report Inquiry’, by certified mail to the individual’s last known address at least 15 days prior to transmitting the request to the consumer reporting agency. Form CS-EF10 is incorporated herein by reference with a revision date of January 1999. Members of the public may obtain a copy of this form by a written request to: Department of Revenue, Child Support Enforcement Program, attn.: Forms Coordinator, P. O. Box 8030, Tallahassee, Florida 32314-8030.

Specific Authority 61.1354(5), 409.2557 FS. Law Implemented 61.1354 FS. History–New 6-17-92, Amended 7-20-94, Formerly 10C-25.009, Amended 10-22-00, Amended________.

NAME OF PERSON ORIGINATING PROPOSED RULE: Mike Vergenz, Government Analyst II, Department of Revenue, P. O. Box 8030, Tallahassee, Florida 32314-8030, telephone [phone], e-mail address [e-mail].
NAME OF SUPERVISOR OR PERSON WHO APPROVED THE PROPOSED RULE: Sharyn Thomas, Revenue Program Administrator II, Department of Revenue, P. O. Box 8030, Tallahassee, Florida 32314-8030
DATE PROPOSED RULE APPROVED BY AGENCY HEAD: June 12, 2006
DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAW: September 30, 2005, Vol. 31, No. 39, pp. 3394-3396. A workshop was held on October 17, 2005. No one other than Department staff presented written or verbal comments at the workshop. Changes have been made in the proposed rule since the workshop based on oral comments received from the Joint Administrative Procedures Committee.