Section 409.2558(3), F.S., requires the Department to establish by rule a method to determine a collection or refund to be undistributable to the final intended recipient. The law provides that before determining a collection or refund ...

 

DEPARTMENT OF REVENUE
Division of Child Support Enforcement

RULE NO.: RULE TITLE:
12E-1.0051: Undistributable Collections
PURPOSE AND EFFECT: Section 409.2558(3), F.S., requires the Department to establish by rule a method to determine a collection or refund to be undistributable to the final intended recipient. The law provides that before determining a collection or refund undistributable, the Department must make reasonable efforts to locate individuals to whom collections or refunds are owed. The law also directs the Department to process, as program income, payments the Department disburses that are less than $1.00 by paper check and the check is not cashed after 180 days, or any amount less than $1.00 owed on a closed Title IV-D case. The purpose of creating proposed Rule 12E-1.0051, F.A.C., is to provide guidance to the public about the Department’s procedures for locating individuals to whom collections or refunds are owed, processing undistributable collections, how an individual can reclaim an undistributable collection, and processing payments that are less than $1.00 as program income. The effect is to provide the public with information on how the Department will: (1) try to locate individuals to whom collections or refunds are owed; (2) determine a collection or refund to be undistributable; (3) process undistributable collections; (4) allow an individual to reclaim a collection applied as program income; and (5) process payments that are less than $1.00 as program income.
SUMMARY: The proposed creation of Rule 12E-1.0051, F.A.C., provides guidance to the public about the Department’s procedures for locating individuals to whom collections or refunds are owed, processing undistributable collections, allowing individuals to reclaim an undistributable collection and processing refund requests. The proposed rule also tells the public that if the Department disburses a payment of less than $1.00 by paper check and the check is not cashed after 180 days, or if less than $1 is owed on a closed Title IV-D case, the Department will process the payment as program income, which is split between the state (General Revenue Fund) and federal governments.
SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS: The agency has determined that this rule will not have an adverse impact on small business.
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.
RULEMAKING AUTHORITY: 409.2557(3)(j), 409.2558(3), 409.2558(9) FS.
LAW IMPLEMENTED: 409.2558(3), 409.2558(5) FS.
A HEARING WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW:
DATE AND TIME: August 1, 2011, 10:00 a.m.
PLACE: 2450 Shumard Oak Boulevard, Building Two, Room 4102, Tallahassee, Florida
NOTICE UNDER THE AMERICANS WITH DISABILITIES ACT: Any person requiring special accommodations to participate in any proceeding before the Child Support Enforcement Program is asked to advise the Department at least 48 hours before the hearing by contacting: Tammy Miller at [phone]. If you are hearing or speech impaired, please contact the Department by using the Florida Relay Service, which can be reached at 1(800)955-8770 (Voice) and [phone] (TDD).
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Phil Scruggs, Government Analyst II, Child Support Enforcement Program, 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-1.0051 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 shall be applied.

(2) Definitions. For purposes of this rule:

(a) “Final intended recipient” means a custodial parent, noncustodial parent, a parent’s estate, or a state, country, or Federal agency providing Title IV-D services, including those agencies administering programs under Title IV-A (Temporary Assistance for Needy Families), IV-E (Foster Care), and 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” is defined by the social and economic assistance provisions in Section 409.2554(14), F.S., to mean a support payment received by the Department which the Department determines cannot be distributed to the final intended recipient.

(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 final intended recipient’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.

(b) The Department will use the following sources to try to find the final intended recipient. If the final intended recipient is deceased, location searches under subparagraphs 1 through 6 are not required. Reasonable efforts to locate a final intended recipient are considered exhausted when, at a minimum, searches of the following sources have taken place and the Department has not found the final intended recipient.

1. Department’s automated case management computer system, to include electronic searches with multiple sources and responses from the Federal Parent Locator Service, as required in 45 CFR 303.70. This search includes the obligor, obligee, and children.

2. Florida Department of Highway Safety and Motor Vehicles.

3. Florida Agency for Workforce Innovation. This search includes employment, wage, unemployment, and Workers’ Compensation records.

4. Florida Department of Corrections.

5. Location sources available from an out-sourced location vendor, subject to a contractual agreement between the Department and vendor.

6. Secure Internet locate sites, as determined on a case-by-case basis.

(c) If the searches under subparagraphs (b)1. through 6. find the final intended recipient, the Department disburses the payment.

(d) If the searches under subparagraphs (b)1. through 6. do not find the final intended recipient, the collection is considered undistributable. The Department shall process the collection in priority order as provided in Section 409.2558(3), F.S.

(e) When the obligor has more than one support order with a past-due balance being enforced by the Department, the Department shall notify the obligor by certified mail, restricted delivery, return receipt requested, of its intent to apply the collection to the obligor’s other cases, according to Section 409.2558(3)(b)6., F.S. If the address of the obligor is unknown, the Department will try to find the obligor using sources referenced in paragraph (b) of this subsection.

(f) If the obligor disagrees with the Department’s plan to apply the collection to the obligor’s other cases and a petition is filed in circuit court and served on the Department within 30 calendar days of the mailing date of notice, the Department will not apply the collection to the obligor’s other cases unless the court enters an order for the Department to apply the collection to the obligor’s other cases.

(g) When the Department has processed the collections as required in Section 409.2558(3)(b)6., F.S., and there are collections remaining, the Department will refund the remaining collections to the obligor if the address of the obligor is known. If the address of the obligor is unknown, the Department will try to find the obligor using sources referenced in paragraph (b) of this subsection.

(4) 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 final intended 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 final intended recipient does not have an established method of electronic disbursement, the Department shall 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 shall process the collection as program income without attempting to locate the final intended recipient.

(5) Reclamation of Undistributable Collections.

(a) The final intended recipient may reclaim undistributable collections retained as program income. The final intended recipient may not reclaim an undistributable collection if the collection was applied to bad check charges because the obligor’s payment is returned to the Child Support Enforcement Program 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 final intended recipient may contact the local child support office or contact the Child Support Enforcement Program Office and ask for the Payment Processing Unit, and request a reclamation form.

(b) To reclaim a collection, the final intended recipient must complete and send to the Department, Form CS-FM125, Request for Refund, dated July 2010, incorporated by reference in this rule. The final intended recipient must prove they are the collection owner by giving his or her name, mailing address, and if known, the child support or case number, date of payment(s), and amount claimed.

(c) The Department will review the information submitted by the final intended recipient and respond in writing to approve or deny the request.

1. If approved, the Department will mail the collection to the final intended recipient.

2. If denied, the Department will mail Form CS-FM127, Request for Refund Denied, dated July 2010, incorporated by reference in this rule, to the final intended recipient. Form CS-FM127 states the request is denied, reason for the denial, and the final intended recipient may contest the decision by seeking an administrative hearing under Chapter 120, F.S. The form includes a Notice of Rights.

3. A final intended recipient may seek an administrative hearing to contest the Department’s decision to deny a request to reclaim a collection considered undistributable by the Department. A petition for an administrative hearing must be received by the Department of Revenue, Child Support Enforcement Program, Deputy Agency Clerk within 20 calendar days from the mailing date of Form CS-FM127. Administrative hearings shall be 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 Enforcement Program, Attn.: Forms Coordinator, P. O. Box 8030, Tallahassee, Florida 32314-8030.

Rulemaking Authority 409.2557(3)(j), 409.2558(3), 409.2558(9) FS. Law Implemented 409.2558(3), 409.2558(5) FS. History– New_________.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Phil Scruggs, Government Analyst II, Child Support Enforcement Program, Department of Revenue, P. O. Box 8030, Tallahassee, Florida 32314-8030, telephone [phone], e-mail address [e-mail]

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Governor and Cabinet

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: June 16, 2011

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAW: A Notice of Proposed Rule Development was published in the Florida Administrative Weekly on November 5, 2010 (Vol. 36, No. 44, pp. 5318-5319). No request to hold a workshop was received by the Department.