5516795 Office of the Attorney General - Notice of Second Proposed Rulemaking - To add a new Chapter 122 to Title 29 to implement the Child Support Lien Program, which will support collection of arrears owed by obligors through levy of personal ...

OFFICE OF THE ATTORNEY GENERAL

 

NOTICE OF SECOND PROPOSED RULEMAKING

 

The Attorney General for the District of Columbia, pursuant to Sections 27c(a)(7)(A)(ii), (c), and (i) and 28 of the District of Columbia Child Support Enforcement Amendment Act of 1985 (Act), effective April 3, 2001 (D.C. Law 13-269; D.C. Official Code §§ 46-226.03(a)(7)(A)(ii), (c), and (i) and 46-227 (2012 Repl.)), and Mayor’s Order 2007-42, dated January 19, 2007, hereby gives notice of his intent to adopt the following new Chapter 122 of Title 29 (Public Welfare) of the District of Columbia Municipal Regulations (DCMR), entitled “Child Support Lien Program,” in not less than thirty (30) days from the date of publication of this notice in the D.C. Register. 

 

The proposed rulemaking will implement the authority of the Office of the Attorney General under Section 27c of the Act to enforce child support orders by intercepting and seizing insurance settlements owed to obligors.   

 

This Notice of Second Proposed Rulemaking supersedes the Notice of Proposed Rulemaking published on March 27, 2015 at 62 DCR 3681, and reflects changes made in response to comments received from the public. 

 

Title 29 DCMR, PUBLIC WELFARE, is amended by adding a new Chapter 122 to read as follows:

 

CHAPTER 122   CHILD SUPPORT LIEN PROGRAM

 

Secs.

 

12201              Scope

12202              Settlement Funds Subject to Lien

12203              Lien Criteria

12204              Filing the Lien

12205              Levy Process

12206              Agency Review

12207              Administrative Hearing

12208              Appeal Procedure

12209              Confidentiality

12299              Definitions

 

 

12201              SCOPE

 

12201.1           The purpose of this chapter is to regulate the Child Support Lien Program (CSLP).  The program will identify and levy settlement funds belonging to child support obligors to satisfy their support arrearages.

 

                        The Child Support Services Division (CSSD) of the Office of the Attorney General for the District of Columbia (OAG) shall be responsible for the implementation of this chapter, which shall apply to obligors and insurers.

 

12202              SETTLEMENT FUNDS SUBJECT TO LIEN

 

12202.1           CSSD shall submit District of Columbia Child Support Enforcement System (DCCSES) files to the Child Support Lien Network (CSLN) to identify obligors with overdue support who are entitled to settlement funds from insurers and meet the criteria for a lien stated in § 12203. 

                         

12203              LIEN CRITERIA

 

12203.1           Settlement funds identified through a CSSD data match with CSLN shall be subject to the filing of a lien when:

 

(a)        There is an active child support case;

 

(b)        The child support order has accumulated arrears greater than or equal to five hundred dollars ($500); and

 

(c)        The child support obligor resides or owns property in the District at the time the funds are identified.

                       

12204              FILING THE LIEN

 

12204.1           If a CSLN data match establishes that an obligor is entitled to settlement funds on a personal injury or workers’ compensation claim and CSSD determines that these funds are subject to a lien under § 12203, CSSD shall file the lien with the Recorder of Deeds in the District of Columbia.

 

12205              LEVY PROCESS

 

12205.1           Once CSSD has filed the Lien with the Recorder of Deeds, CSSD shall:

 

(a)                Serve the insurer with a Notice of Lien, which shall indicate the amount of arrears owed by the obligor and direct the insurer to:

 

(1)               Levy the funds in the amount of arrears owed by the obligor as stated in the Notice of Lien; and

 

(2)               Remit the levied funds to CSSD’s Child Support Clearinghouse; and

 

(b)        Send by first class mail to the obligor’s last known address of record a copy of the Notice of Lien and a letter informing the obligor of the right to object to the Notice of Lien by requesting an agency review with CSSD or an administrative hearing with the Office of Administrative Hearings (OAH).

 

12205.2           Upon receipt of the levied funds, CSSD shall retain the funds for sixty-five (65) days from the date of the Notice of Lien to provide the obligor with an opportunity to request either an agency review or an administrative hearing before OAH, or both.

 

12205.3           If the obligor does not request an agency review or an administrative hearing before OAH, CSSD shall remit the levied funds to the obligee at the conclusion of the sixty-five (65) day period.    

 

12206              AGENCY REVIEW

                       

12206.1           An obligor whose funds are subject to a lien may request an agency review within fifteen (15) days from the date of the Notice of Lien.  The obligor may request the agency review by informing CSSD of his or her objections to the Notice of Lien by phone, in person, or in writing.  The obligor shall not use e-mail to transmit written objections. 

 

12206.2           Grounds for contesting the Notice of Lien include:  

 

(a)                The Notice of Lien was issued to the wrong person;

 

(b)               The obligor did not reside or own property in the District of Columbia at the time that the funds were identified;

 

(c)        The arrears are incorrect because of a failure to account for all child support payments, an incorrect computation of the balance due, or a failure to give effect to a prior suspension or modification of the support obligation; or

 

(d)       The existence of an affirmative defense to enforcement of the judgment authorized by applicable law.

 

12206.3           Neither the support order nor the underlying money judgment may be modified in response to an obligor’s contest of the Notice of Lien.   

 

12206.4           Upon receipt of a request for an agency review from an obligor, CSSD shall review the case and notify the obligor in writing of the agency’s decision within ten (10) days of the date the request for review was received by CSSD. 

 

12206.5           At the conclusion of the agency review, CSSD shall: 

 

(a)                Release the Notice of Lien, notify the insurer and obligor that the lien has been released, and return the funds to the obligor; or

 

(b)               Adjust arrears and return any overpayment to the obligor if the obligor demonstrates that the arrears are incorrect because of a failure to account for all child support payments, an incorrect computation of the balance due, or a failure to give effect to a prior suspension or modification of the support obligation.  After the adjustment, CSSD shall file with the Recorder of Deeds a new Notice of Lien reflecting the updated arrearage balance and send a copy of the new Notice of Lien to the obligor and the insurer; or

 

(c)        Inform the obligor of CSSD’s intent to retain levied funds and the obligor’s right to request an administrative hearing with OAH.

                                                           

12207              ADMINISTRATIVE HEARING

 

12207.1           Regardless of whether the obligor has sought agency review of the Notice of Lien, the obligor may seek legal review of the agency’s action by requesting an administrative hearing with OAH within sixty-five (65) days from the date of the Notice of Lien. 

 

12207.2           Grounds for contesting the Notice of Lien before OAH shall be the same as the grounds stated in §12206.02.

 

12207.3           Notice of the right to an administrative hearing shall be included with the Notice of Lien.

 

12207.4           The request for administrative hearing shall be made in accordance with OAH Rules, DCMR Title 1, Chapter 28.  The hearing request must be received by OAH within sixty-five (65) days after the date of the Notice of Lien.  

 

12207.5           If the obligor requests an administrative hearing, CSSD shall retain the levied funds until a decision is rendered by the administrative law judge.  After the decision is rendered, CSSD shall either disburse the levied funds to the obligor or the obligee in accordance with the final order issued by OAH.   

 

12207.6           After all arrears owed by obligor are satisfied, or the OAH finds that the Notice of Lien is inappropriate, CSSD shall file a Release of Lien with the Recorder of Deeds for the District of Columbia, and notify CSLN and the obligor that the lien has been released. 

 

12208              APPEAL PROCEDURE

 

12208.1           The obligor may seek judicial review of the administrative hearing decision at the D.C. Court of Appeals in accordance with section 11 of the District of Columbia Administrative Procedure Act, approved October 21, 1968 (82 Stat. 1209; D.C. Official Code § 2-510) and section 19 of the Office of Administrative Hearings Establishment Act of 2001, effective March 6, 2002 (D.C. Law 14-76; D.C. Official Code § 2-1831.16). 

 

12208.2           If the Court of Appeals reverses OAH’s order denying the obligor’s objections to the Notice of Lien, CSSD shall credit the obligor’s child support obligation for the amount that was distributed, or send payment to the obligor in accordance with the final order issued by the Court of Appeals. 

 

12209              CONFIDENTIALITY

 

                        CSSD shall maintain the confidentiality of information and records concerning an obligor’s financial information and shall only release information or records as permitted by applicable provisions of District or federal law.

12299              DEFINITIONS

 

                        The following terms and phrases shall have the meanings ascribed here:

 

Arrears – past due child support payments.

 

Child Support Lien Network (CSLN) – a national database that is matched daily with personal injury and workers’ compensation claims registered by insurers with the ISO ClaimSearch database to identify obligors with child support arrears who are awaiting settlement of personal injury and workers’ compensation claims. 

 

Data match – the process of comparing customers with insurance claims in the Child Support Lien Network against CSSD’s caseload consisting of obligors who have a child support case and owe arrears.

 

District of Columbia Child Support Enforcement System (DCCSES) – the automated system used by CSSD to manage child support cases.

 

Levy – the seizure of a debtor's specific asset or property to satisfy a judgment, debt, or claim.

 

Lien – a qualified right to property which a creditor has in or over specific real or personal property of a debtor as security for the debt.

 

Notice of Lien -- a document that states the CSSD’s secured interest in the obligor’s settlement funds. after the lien has been filed with the Recorder of Deeds.

 

Obligee – the person or entity that is entitled to receive child support pursuant to a court or administrative order.

 

Obligor – a person who is required pay child support pursuant to a court or administrative order.

 

Release of Lien – a document that relinquishes the encumbrance of the obligor’s property or settlement funds created by the Notice of Perfected Lien.

 

Settlement funds – an award of money damages paid by an insurer to a claimant to indemnify or make claimant whole after injury.

 

Workers’ Compensation – benefit paid to employee who is injured or killed as a result of or in the course of employment.

 

 

All persons desiring to comment on the subject matter of this proposed rulemaking should file comments in writing within thirty (30) days after the date of publication of this notice in the D.C. Register.  Hand-delivered comments should be delivered, and mailed comments should be postmarked, no later than thirty (30) days after publication of this notice in the D.C. Register. Comments should be filed with Magda Benfield, Trial Attorney, Office of the Attorney General, Child Support Services Division, 441 4th Street N.W., Suite 550N, Washington, DC 20001.  Copies of these proposed rules may be obtained without charge at this address. Questions should be directed to Magda Benfield at [phone] or [e-mail].