No. 42638 (New Rule): Rule R527-303. Automatic Payment Withdrawal

(New Rule)

DAR File No.: 42638
Filed: 03/07/2018 03:10:55 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

Pursuant to Subsection 62A-11-703(6), the purpose of this rule is to specify how the Office of Recovery Services (ORS) will determine the eligibility of an obligor to make child support payments via automatic payment withdrawal from a bank account in lieu of income withholding.

Summary of the rule or change:

The first section of this rule provides the authority of the Office of Recovery Services (ORS) to create rules pursuant to Sections 62A-1-111 and 62A-11-107, as well as pursuant to Subsection 62A-11-703(6) requiring rules on how ORS will determine the eligibility of an obligor to make child support payments to ORS via automatic payment withdrawal. (While the statute has been in place for several years, the technology changes allowing this alternative payment method will finally be implemented in spring of 2018.) The second section explains that pursuant to Section 62A-11-703, ORS may enter into an agreement with an obligor to automatically withdraw from an obligor's account at a financial institution a specified dollar amount on a specified date(s) each month, via electronic funds transfer, for payment of the obligor's child support obligation. This section outlines the criteria established by ORS which must be met for a case to qualify for automatic payment withdrawal. Finally, this section allows the ORS Director discretion to terminate any agreement for abuse or cause.

Statutory or constitutional authorization for this rule:

• Section 62A-11-703
• Section 62A-1-111
• Section 62A-11-107

Anticipated cost or savings to:

the state budget:

This proposed rule is not expected to have any fiscal impact on state government revenues or expenditures, because this rule outlines the qualifications for an individual parent to pay child support via electronic funds transfer in lieu of income withholding.

local governments:

This proposed rule is not expected to have any fiscal impact on local government revenues or expenditures, because administrative rules of the Office of Recovery Services (ORS) do not apply to local governments.

small businesses:

This proposed rule is not expected to have any fiscal impact on small businesses revenues or expenditures, because this rule outlines the qualifications for an individual parent to pay child support via electronic funds transfer in lieu of income withholding.

persons other than small businesses, businesses, or local governmental entities:

This proposed rule is not expected to have any fiscal impact on persons other than small businesses, businesses, or local government entities because this rule outlines the qualifications for an individual parent to qualify to pay child support via electronic funds transfer in lieu of income withholding. Payment via electronic funds transfer in lieu of income withholding is an option available to paying parents if they choose, not a requirement.

Compliance costs for affected persons:

There are no compliance costs associated with this rule as this rule outlines the qualifications for an individual parent to pay child support via electronic funds transfer in lieu of income withholding.

Comments by the department head on the fiscal impact the rule may have on businesses:

After conducting a thorough analysis, it was determined that this proposed rule will not result in a fiscal impact to businesses.

Ann Silverberg Williamson, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Office of Administrative Rules, or at:

Human Services
Recovery Services
515 E 100 S
SALT LAKE CITY, UT 84102-4211

Direct questions regarding this rule to:

• Casey Cole at the above address, by phone at 801-741-7523, by FAX at 801-536-8509, or by Internet E-mail at [e-mail]
• Scott Weight at the above address, by phone at 801-741-7435, by FAX at 801-536-8509, or by Internet E-mail at [e-mail]
• Jonah Shaw at the above address, by phone at 801-538-4225, by FAX at 801-538-3942, or by Internet E-mail at [e-mail]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

05/01/2018

This rule may become effective on:

05/08/2018

Authorized by:

Liesa Stockdale, Director

RULE TEXT

Appendix 1: Regulatory Impact Summary Table*

Fiscal Costs

FY 2018

FY 2019

FY 2020

State Government

$0

$0

$0

Local Government

$0

$0

$0

Small Businesses

$0

$0

$0

Non-Small Businesses

$0

$0

$0

Other Person

$0

$0

$0

Total Fiscal Costs:

$0

$0

$0

Fiscal Benefits

State Government

$0

$0

$0

Local Government

$0

$0

$0

Small Businesses

$0

$0

$0

Non-Small Businesses

$0

$0

$0

Other Persons

$0

$0

$0

Total Fiscal Benefits:

$0

$0

$0

Net Fiscal Benefits:

$0

$0

$0

 

*This table only includes fiscal impacts that could be measured. If there are inestimable fiscal impacts, they will not be included in this table. Inestimable impacts for State Government, Local Government, Small Businesses and Other Persons are described above. Inestimable impacts for Non - Small Businesses are described below.

 

Appendix 2: Regulatory Impact to Non-Small Businesses

This proposed rule is not expected to have any fiscal impacts on state government or small businesses revenues or expenditures, because the rule outlines the qualifications for an individual parent to pay child support via electronic funds transfer in lieu of income withholding.

 

This proposed rule is not expected to have any fiscal impacts on local government revenues or expenditures, because administrative rules of the Office of Recovery Services (ORS) do not apply to local government.

 

This proposed rule is not expected to have any fiscal impacts on persons other than small businesses, businesses, or local government entities, because the rule outlines the qualifications for an individual parent to qualify to pay child support via electronic funds transfer in lieu of income withholding. Payment via electronic funds transfer in lieu of income withholding is an option available to paying parents if they choose, not a requirement.

 

 

R527. Human Services, Recovery Services.

R527-303. Automatic Payment Withdrawal.

R527-303-1. Authority and Purpose.

1. The Department of Human Services is authorized to create rules necessary for the provision of social services by Section 62A-1-111 and 62A-11-107. Pursuant to Section 62A-11-703(6), the Office of Recovery Services/Child Support Services (ORS/CSS) shall make rules specifying eligibility requirements to enter into alternative payment agreements.

2. The purpose of this rule is to specify how ORS/CSS will determine the eligibility of an obligor to make child support payments via automatic payment withdrawal from a bank account in lieu of income withholding.

 

R527-303-2. Automatic Payment Withhdrawal.

1. Pursuant to Section 62A-11-703, ORS/CSS may enter into an alternative payment agreement with an obligor which provides for payment of child support via electronic funds transfer from the obligor's account at a financial institution in lieu of income withholding.

2. In order to be eligible to enter into an alternative payment agreement with ORS/CSS, an obligor:

a. must have a verified address in the Office of Recovery Services Information System;

b. must not have been disqualified from using the alternative payment agreement in the last 12 months; and,

c. may not be an obligor on an active outgoing intergovernmental case.

3. The ORS/CSS Director or designee may exercise his/her discretion to terminate any agreement for abuse or cause.

 

KEY: child support, electronic funds transfer, automatic payment withdrawal

Date of Enactment or Last Substantive Amendment: 2018

Authorizing, and Implemented or Interpreted Law: 62A-1-111; 62A-11-107; 62A-11-703

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