Subparagraph (i) of paragraph (4) of subdivision (c) of § 347.13 of Title 18 of the NYCRR is amended to read as follows:

(i) Any amount that is collected in a month shall be distributed to the required support obligation and shall be disbursed to the family; provided, however, where the collections disbursed to the family for the federal fiscal year exceed [$500] $550, the first [$25] $35 of such collections shall be deducted for the annual service fee imposed pursuant to section 347.17 of this Part, and such deduction shall be disbursed to the social services district. For purposes of the annual service fee only, a case which has never received public assistance pursuant to section 369.2 of this Title is deemed a never-assistance case and shall be subject to the annual service fee when collections received under this subdivision or subdivision (d) for the federal fiscal year exceed [$500] $550 and are disbursed to the family.

Paragraph (3) of subdivision (d) of § 347.13 of Title 18 of the NYCRR is amended to read as follows:

(3) Never-Assistance Cases. Support collections through Federal income tax refund offsets in never-assistance cases shall be distributed and disbursed to the family; provided, however, where the collections disbursed to the family for the federal fiscal year exceed [$500] $550, the first [$25] $35 of such collections shall be deducted for the annual service fee imposed pursuant to section 347.17 of this Part, and such deduction shall be disbursed to the social services district. For purposes of the annual service fee only, a case which has never received public assistance pursuant to section 369.2 of this Title is deemed a never-assistance case and shall be subject to the annual service fee when collections received under this subdivision or subdivision (c) for the federal fiscal year exceed [$500] $550 and are disbursed to the family.

Paragraph (2) of subdivision (b) of § 347.17 of Title 18 of the NYCRR is amended to read as follows:

(2) An annual service fee of [$25] $35 shall be imposed for any individual receiving child support services who has never received assistance pursuant to Title IV-A of the federal Social Security Act if at least [$500] $550 of support has been collected in the federal fiscal year on the individual's child support case. Where a custodial parent has children with different noncustodial parents, the order of support payable by each noncustodial parent shall be a separate child support case for the purpose of imposing an annual service fee. The annual service fee shall be deducted from child support payments received on behalf of the individual receiving child support services pursuant to section 347.13 of this Part. In international cases under section 111-g(3)(b) of the Social Services Law which meet the criteria for imposition of the fee under this paragraph, the annual service fee shall be imposed but may not be collected from the country requesting services or from an individual living in another country unless permitted by federal law or regulation.

1. Statutory authority:

Title 42 of the United States Code (42 U.S.C.) § 654 sets forth authority for the Title IV-D child support program (IV-D program) and, specifically, § 654(6)(B)(ii), as recently amended by the Bipartisan Budget Act of 2018, requires States to impose an annual fee of $35 for each case where an individual has never received assistance under a State program funded under Title IV-A of the federal Social Security Act (SSA) and for whom the state has collected at least $550 of support per federal fiscal year.

Title 45 of the Code of Federal Regulations (C.F.R.) § 302.33(e) currently directs that a $25 fee be imposed for each case if there is an individual in the case to whom IV-D services are provided and for whom the State has collected and disbursed to the family at least $500 of support in that year. Proposed regulatory amendments have been advanced to update 45 C.F.R. § 302.33(e) to align with 42 U.S.C. § 654(6)(B)(ii), complying with the federally mandated $35 annual service fee and minimum collection amount of $550 under the Bipartisan Budget Act of 2018.

Social Services Law (SSL) § 17(a)-(b) and (k) provide, in part, that the Commissioner of the Office of Temporary and Disability Assistance (OTDA) shall “determine the policies and principles upon which public assistance, services and care shall be provided within the state both by the state itself and by the local governmental units …”, shall “make known his policies and principles to local social services officials and to public and private institutions and welfare agencies subject to his regulatory and advisory powers…”, and shall “exercise such other powers and perform such other duties as may be imposed by law.”

SSL § 20(3)(d) authorizes OTDA to promulgate regulations to carry out its powers and duties.

SSL § 34(3)(f) requires the Commissioner of OTDA to establish regulations for the administration of public assistance and care within the State.

SSL § 111-a requires OTDA to promulgate regulations necessary to obtain and retain approval of its child support state plan, required to be submitted to the federal Department of Health and Human Services by Part D of Title IV of the SSA.

SSL § 111-g requires that an annual child support services fee of $35 be imposed on persons who receive child support services who have never received assistance pursuant to Title IV-A of the SSA and for whom a minimum of $550 has been collected per federal fiscal year.

2. Legislative objectives:

It was the intent of the Legislature in enacting the above statutes that OTDA establish rules, regulations and policies so that child support services are provided to eligible persons to ensure that, to the greatest extent possible, parents provide financial support for their children.

3. Needs and benefits:

The proposed regulatory amendments to 18 NYCRR §§ 347.13 and 347.17 are being advanced to update the current State regulation to reflect the recent amendments to Social Services Law § 111-g, which increased the annual child support services fee imposed on persons who receive child support services and have never received assistance pursuant to Title IV-A of the SSA from $25 to $35 and the minimum collection requirement for imposing such fee from $500 to $550 per federal fiscal year. Therefore, the proposed regulatory amendments would conform the current State regulation with the implementation of 42 U.S.C.§ 654(6)(B)(ii) and SSL § 111-g, which were recently amended to comply with the federally mandated $35 annual service fee under the Bipartisan Budget Act of 2018 for providing child support services in the case of an individual who has never received assistance under the State’s Title IV-A program and for whom the State has collected at least $550 of support in the federal fiscal year.

4. Costs:

The proposed regulatory amendments would not require social services districts (districts) to incur any initial capital costs or annual costs for maintaining compliance with the adopted rule.

5. Local government mandates:

The proposed regulatory amendments are consistent with federal and State laws.

6. Paperwork:

The proposed regulatory amendments would not impose any new forms, new reporting requirements, or other paperwork upon the State or the districts.

7. Duplication:

The proposed regulatory amendments would not duplicate, overlap, or conflict with any existing federal or State law or regulation.

8. Alternatives:

There are no viable alternatives to the proposed regulatory amendments as the amendments are statutorily required pursuant to federal and State law.

9. Federal standards:

The proposed regulatory amendments would not conflict with federal standards for imposing an annual service fee on persons who receive child support services pursuant to SSL § 111-g who have never received assistance pursuant to Title IV-A of the SSA or the minimum collection requirement for imposing such fee.

10. Compliance schedule:

OTDA anticipates that districts would be in compliance with the proposed regulatory amendments upon their effective date, insofar as the districts currently impose an annual service fee on persons who receive child support services pursuant to SSL § 111-g who have never received assistance pursuant to Title IV-A of the SSA and meet the minimum collection threshold. The fee and the minimum annual collection requirement to impose such fee have simply increased pursuant to amendments to 42 U.S.C. § 654(6)(B)(ii) and SSL § 111-g.

A RFASBLG is not required because the proposed regulatory amendments to 18 NYCRR §§ 347.13 and 347.17 will neither have an adverse impact upon, nor impose reporting, recordkeeping, or other compliance requirements upon small businesses or local governments. As it was evident from the proposed regulations that they would not have an adverse impact or impose reporting, recordkeeping, or other compliance requirements, no further measures were needed to ascertain those facts and, consequently, none were taken.

A RAFA is not required because the proposed regulatory amendments to 18 NYCRR §§ 347.13 and 347.17 would neither have an adverse impact upon, nor impose reporting, recordkeeping, or other compliance requirements upon rural social services districts (rural districts) or private entities in rural areas. As it was evident from the proposed regulations that they would not have an adverse impact or impose reporting, recordkeeping, or other compliance requirements upon rural districts or private entities in rural areas, no further measures were needed to ascertain those facts and, consequently, none were taken.

A JIS is not required for the proposed regulatory amendments. It is apparent from the nature and the purpose of the proposed regulatory amendments to 18 NYCRR §§ 347.13 and 347.17 that they would have no substantive impact on jobs and employment opportunities in either the public or the private sectors of New York State. The proposed regulatory amendments are necessary to amend the existing State regulatory provisions regarding the annual service fee imposed on persons who receive child support services pursuant to Social Services Law § 111-g who have never received assistance pursuant to Title IV-A of the federal Social Security Act (SSA). Thus, the proposed regulatory amendments would not have any adverse impact on public or private sector jobs and employment opportunities in New York State.