S. B. No. 170 As Introduced

SENATOR Harris

A BILL

To require each child support enforcement agency to

review child support orders to determine whether

federal law was complied with regarding state

income tax refund intercepts and to apply certain

provisions of federal law regarding assigned child

support amounts, to require the Department of Job

and Family Services to distribute payments

consistent with the findings of the reviews, and to

make an appropriation.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. (A) As used in this section:

(1) "ADC assistance" means assistance provided pursuant to	11
the former aid to dependent children program.	12

(2) "Assistance group" and "Ohio works first" have the same	13
meanings as in section 5107.02 of the Revised Code.	14

(3) "Child support order" has the same meaning as in section	15
3119.01 of the Revised Code.	16

(4) "Support payee" means a person who is entitled to receive	17
support payments made under a child support order and with respect	18
to whom both of the following apply:	19

(a) The person is a member of an assistance group that	20
applied for and began participating in Ohio works first on or	21
after October 1, 1997.	22

(b) Prior to the person's application for participation in	23
Ohio works first, a support arrearage accrued under the child	24
support order to which all of the following apply:	25

(i) The support arrearage was collected from payments on the	26
support arrearages and not payments of current support.	27

(ii) The support arrearage was not collected pursuant to	28
section 464 of Title IV-D of the "Social Security Act," 95 Stat.	29
860 (1981), 42 U.S.C. 664, as amended.	30

(iii) The support arrearage was collected on and after the	31
date the assistance group of which the person is a member ceased	32
participating in Ohio works first.	33

(B)(1) Each county child support enforcement agency shall do	34
the following:	35

(a) Conduct a review of all child support cases involving a	36
support payee the agency is administering or has administered and	37
apply, retroactive to October 1, 1997 through September 30, 2000,	38
the provisions of section 457(a)(2)(B)(i)(II), (ii)(II), and (v)	39
of Title IV-D of the "Social Security Act," 110 Stat. 2200 (1996),	40
42 U.S.C. 657(a)(2)(B)(i)(II), (ii)(II), and (v), as amended, to	41
the support payees' child support orders to determine the amount	42
of assigned support and the proper distribution of support	43
arrearage payments;	44

(b) Conduct a review of all child support cases the agency	45
administered during the years 1997 through 2000 to determine	46
whether refunds of paid state income taxes collected pursuant to	47
sections 3123.82 to 3123.823 and 5747.121 of the Revised Code on	48
and after October 1, 1997, and before October 1, 2000, and	49
distributed to the state to reimburse ADC assistance or Ohio works	50
first assistance were collected and distributed in accordance with	51
section 457 of Title IV-D of the "Social Security Act," 88 Stat.	52
2356 (1975), 42 U.S.C. 657, as amended.	53

(2) Agencies shall conduct the reviews in accordance with	54
rules adopted by the Department pursuant to division (D) of this	55
section. If the Department of Job and Family Services takes action	56
against an agency pursuant to division (C) of section 5101.24 of	57
the Revised Code to require the agency to comply with all of the	58
requirements applicable to agency reviews under this section,	59
division (D) of that section shall not apply.	60

(C)(1) Notwithstanding the Revised Code, any election made by	61
the state pursuant to section 457(a)(6) of Title IV-D of the	62
"Social Security Act," 111 Stat. 626 (1997), 42 U.S.C. 657(a)(6),	63
as amended, or any court order establishing assigned support	64
arrearage amounts, and based on reviews conducted under division	65
(B)(1)(a) of this section, the Department shall distribute to	66
support payees payments that represent the amount of child support	67
arrearage payments that were distributed to the state instead of	68
the support payees and that would have been distributed to the	69
support payees if 42 U.S.C. 657(a)(2)(B)(i)(II), (ii)(II), and (v)	70
had been applied retroactive to October 1, 1997, through September	71
30, 2000. The payments to the support payees shall not be reduced	72
by the federal share of the arrearage amount collected as provided	73
in section 457 of Title IV-D of the "Social Security Act," 88	74
Stat. 2356 (1975), 42 U.S.C. 657, as amended, regardless of	75
whether the federal share is received by the state.	76

(2) If the review conducted pursuant to division (B)(1)(b) of	77
this section reveals payments that were incorrectly distributed to	78
the state, the Department shall redistribute the payments in	79
accordance with section 457 of Title IV-D of the "Social Security	80
Act," 88 Stat. 2356 (1975), 42 U.S.C. 657, as amended.	81

(3) Prior to completion of a case review under division	82
(B)(1)(a) of this section, the Department shall distribute to	83
support payees any assigned support collected and distributed to	84
the state on and after October 1, 2000, other than amounts	85
collected pursuant to section 464 of Title IV-D of the "Social	86
Security Act," 95 Stat. 860 (1981), 42 U.S.C. 664, as amended.	87
Support payees receiving the payments under division (C)(3) of	88
this section shall not be required to repay those amounts to the	89
state if it is determined later that the payments should have been	90
retained by the state as assigned support.	91

(4) On completion of a case review under division (B)(1)(a)	92
of this section and payment of the amounts required by divisions	93
(C)(1) and (3) of this section, if a support arrearage amount is	94
still subject to assignment, the Department shall collect and	95
distribute all support arrearage amounts in accordance with	96
section 457 of Title IV-D of the "Social Security Act," 88 Stat.	97
2356 (1975), 42 U.S.C. 657, as amended.	98

(5) The Department shall pay, with each payment made pursuant	99
to this section, interest at the rate of six and one half per cent	100
per annum, if the interest amount exceeds ten dollars.	101

(6) To the extent permitted under federal law, receipt of a	102
payment pursuant to this section shall not be treated as income to	103
the recipient for purposes of determining eligibility for benefits	104
from means-tested government administered programs, including Ohio	105
Works First; Prevention, Retention, and Contingency; Food Stamps;	106
Disability Assistance; or other assistance for which eligibility	107
is based on income or assets.	108

(D) The Department shall adopt internal management rules	109
pursuant to section 111.15 of the Revised Code to govern the	110
conduct of agency reviews under division (B) of this section. The	111
Department shall adopt rules pursuant to Chapter 119. of the	112
Revised Code governing the calculation and payment distributions	113
pursuant to division (C) of this section.	114

Section 2. The Director of Job and Family Services may	115
deposit into Fund 5T2, Child Support Special Payment Fund, which	116
is hereby created in the state treasury, up to $30.6 million of	117
earned federal funds that the state receives from the Food and	118
Nutrition Service in the United States Department of Agriculture,	119
for federal fiscal years 1997, 1998, 1999, and 2000, and up to	120
$10.0 million of quality control audit funds returned to the state	121
by the United States Department of Health and Human Services. The	122
funds deposited into Fund 5T2 are hereby appropriated to	123
appropriation item 600-652, Child Support Special Payment, and	124
shall be used in accordance with the provisions of this act,	125
including the costs associated with conducting the case reviews.	126
The Director of Job and Family Services shall determine when all	127
payments required by this act have been made and notify the	128
Director of Budget and Management, at which time the Director of	129
Budget and Management shall transfer all remaining funds in Fund	130
5T2 to the General Revenue Fund.	131

Section 3. The sections of law contained in this act, and the	132
items of law of which they are composed, are not subject to the	133
referendum. Therefore, under Ohio Constitution, Article II,	134
Section 1d and section 1.471 of the Revised Code, sections of law	135
contained in this act, and the items of law of which they are	136
composed, go into immediate effect when this act becomes law.	137