Child Support recoupment and CalWORKs overpayments

The California Department of Social Services (CDSS) has issued instructions regarding the interaction between child support recoupment and CalWORKs overpayments.  Any month in which the full amount of CalWORKs paid is reimbursed by collected child support is not counted as a month of receipt of aid for the 48 month time on aid limit.  This not counting of months where the full amount of CalWORKs paid is reimbursed by collected child support occurs whether the child support is collected in that month or is retroactively applied to that month.

Child support recoupment cannot be used to reimburse a CalWORKs overpayment because it is used to adjust time-on-aid.

When a month is a partial overpayment and the client is eligible for a portion of the CalWORKs paid for that month, child support recoupment can only repay the portion of the grant that the client is entitled to.  Time-on-aid for that month cannot be unticked until the county is fully reimbursed for CalWORKs paid for that month.

If the county determines there is an overpayment for a month that was previously reimbursed by child support collection, the county must change the child support collection to apply it to the next month that has not been unticked. (ACL 18-123, October 8, 2018.)

Release of child support judgment liens

The California Department of Child Support Services (DCSS) has issued a new policy about release of judgment liens.  LSCAs are required to record real property liens as part of enforcing child support orders.  LCSA must release real property liens when closing a case.

Existing regulations allow Local Child Support Agencies (LCSAs) to either record lien releases or provide lien releases to obligors to record.  Effective January 1, 2018, the fee to record a release of lien is $75.  LCSAs are exempt from the new fee.  For that reason, LCSAs must now record record Release of Judgment Liens on behalf of the obligor unless an obligor asks to record it themselves or through an escrow transaction.

LCSA can record lien releases without a notary certificate.  Obligors must still provide a notary certificate if they record a lien release themselves.  (CSSP Letter 17-11, December 29, 2017.)

Child support distribution error

CDSS has issued instructions about a programming error that caused incorrect child support distribution in about 28,000 cases.  The problem occurred in the implementation of repeal of the Maximum Family Grant rule.  The error caused some families who are receiving CalWORKs to receive the entire amount of current child support instead of only the $50 disregard.  In other cases, the error incorrectly caused the full amount of child support collected to be retained by the state when some or all of the collection should have been distributed to the family.

CDSS states that payments issued in error are unlikely to continue and therefore should not be considered income because they are not reasonably anticipated.  After two payments, the County Welfare Department should communicate with the Local Child Support Agency to determine if the payments will continue.  If the payments will continue, they will be considered to be reasonably anticipated going forward.

For cases where the $50 disregard was improperly retained by the State, the $50 disregard will be retroactively paid to the family.  These retroactive payments will not be considered income or property for CalWORKs.  (All County Welfare Directors Letter, December 28, 2017.)

Child support order suspension for incarcerated obligors

The Department of Child Support Services has issued statewide policy instructions regarding suspension of child support orders for incarcerated obligors.  This policy implements revisions to Family Code 4007.5 in AB 610 (2015).

Child support obligations are suspended when a qualifying order is issued or modified after October 8, 2015 and the obligor has been incarcerated or involuntarily institutionalized for more than 90 consecutive days after the order was issued or modified.  The suspension applies to payments on a current order and arrears payments.

Exceptions to child support obligation suspension are when the obligor has the means to pay while incarcerated or involuntarily institutionalized, the incarceration or involuntary institutionalization is for domestic violence, or the incarceration or involuntary institutionalization is for failure to comply with a child support order.

Local Child Support Agencies (LCSA) can administratively adjust orders at any time after the initial 90 days of incarceration or involuntary institutionalization provided that the LCSA sends notice of the intended adjustment to both the obligor and obligee and neither party has objected within 30 days of receipt of the notice.  If either party objects, the LCSA must file a motion in court. The child support order suspends effective the first day of the first full month following incarceration or involuntary institutionalization.

If there is no evidence of ability to pay when the obligor is incarcerated or involuntarily institutionalized, the LCSA can ask the court to establish a $0 order when the order is initially established or when the LCSA determines based on its review of the case that the order should be modified.

These policies do not apply to orders established or modified prior to October 8, 2015. (CSSP Letter 17-03, October 10, 2017.)

International child support enforcement

The Office of Child Support Enforcement (OCSE) of the United States Department of Health and Human Services has released instructions that 14 forms for international child support cases have been approved for use.

The United States ratified the Hague Convention on the International Recovery of Child Support and Other Forms of Family Maintenance on August 30, 2016.  The Hague Child Support Convention provides a legal framework and administrative procedures for international child support cases, speeds up the enforcement of U.S. orders by limiting the circumstances under which a court can review and object to an order those similar to grounds now allowed under United States law, recognizes United States due process requirements, and provides standardized time frames and procedures for international case processing.  (See OCSE DCL 16-11.)  31 countries have signed the Hague Child Support convention.

Child support agencies must use the approved forms for case processing with convention countries unless the responding countries has different form requirements.  (OCSE AT 17-06, July 11, 2017.)

Changes to federal child support regulations

The United States Department of Health and Human Services has substantially changed the regulations governing child support effective January 19, 2017.  Highlights of the changes include:

For establishment of child support orders, agencies must take reasonable steps to develop the factual basis for the requested support obligation, gather information about the non-custodial parent’s earnings and income, and when income and earning information is unavailable, gather information about the specific circumstances of the case.  (45 C.F.R. § 303.4.)

For enforcement of child support orders, states must establish guidelines for using civil contempt and must give clear notice that ability to pay is a critical question in civil contempt cases.  (45 C.F.R. § 303.6.)

For modification of child support orders, agencies must initiate review if they learn that the non-custodial parent is incarcerated for over 180 days even without a request, and must give notice to both parents within 15 days of initiating that review.  (45 C.F.R. § 303.8.)

Case closure is no longer mandatory but is optional with the agency when one of the criteria in the regulation is met.  The case closure criteria are substantially expanded and changed.  (45 C.F.R. § 303.11.)  There are now 21 possible reasons to close a case.

For medical support orders, the regulation is modified to allow flexibility in how a non-custodial parent provides health insurance coverage.  (45 C.F.R. §303.31.)

The changes also allow paternity only services in non-welfare cases and specify requirements for state child support order guidelines.

Flexibility, Efficiency, and Modernization in Child Support Enforcement Programs, 81 Fed. Reg. 93492 (December 20, 2016).