Current Status Bill Number:3650 Ratification Number:235 Act Number:133 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:19970313 Primary Sponsor:Felder All Sponsors:Felder, Harrison, Cotty, Young, Davenport and Haskins Drafted Document Number:psd\7135ac.97 Companion Bill Number:531 Date Bill Passed both Bodies:19970603 Date of Last Amendment:19970529 Governor's Action:S Date of Governor's Action:19970611 Subject:Child support obligations, enforcement; family independence provisions; Minors, Social Services Department
Body Date Action Description Com Leg Involved
______ ________ _______________________________________ _______ ____________
------ 19970630 Act No. A133
------ 19970611 Signed by Governor
------ 19970609 Ratified R235
House 19970603 Concurred in Senate amendment,
enrolled for ratification
Senate 19970529 Amended, read third time,
returned to House with amendment
Senate 19970529 Reconsidered vote whereby
read third time and enrolled
Senate 19970529 Recalled from Legislative Council
Senate 19970521 Read third time, enrolled for
ratification
Senate 19970520 Read second time
Senate 19970515 Recalled from Committee, 11 SJ
placed on the Calendar
Senate 19970501 Introduced, read first time, 11 SJ
referred to Committee
House 19970430 Read third time, sent to Senate
House 19970429 Amended, read second time
House 19970417 Committee report: Favorable with 30 HWM
amendment
House 19970313 Introduced, read first time, 30 HWM
referred to Committee
View additional legislative information at the LPITS web site.
(A133, R235, H3650)
AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 20-7-515 SO AS TO PROVIDE PROCEDURES FOR THE DEPARTMENT OF SOCIAL SERVICES TO ISSUE A NOTICE OF FINANCIAL RESPONSIBILITY TO PERSONS OWING CHILD SUPPORT; TO AMEND SECTION 12-6-3470, AS AMENDED, RELATING TO THE EMPLOYER TAX CREDIT FOR EMPLOYING PERSONS WHO RECEIVED AID TO FAMILIES WITH DEPENDENT CHILDREN (AFDC), SO AS TO CHANGE THE TERM "AFDC" TO "FAMILY INDEPENDENCE", TO REVISE TAX ELIGIBILITY REQUIREMENTS AND PROCEDURES, AND TO REVISE PROCEDURES FOR EMPLOYERS TO OBTAIN INFORMATION ON THE AVAILABILITY OF POTENTIAL EMPLOYEES; TO AMEND SECTION 20-7-941, RELATING TO LICENSE REVOCATION FOR NONPAYMENT OF CHILD SUPPORT, SO AS TO REVISE THE DEFINITION OF "LICENSE" WITH REGARD TO HUNTING, FISHING, OR TRAPPING; TO AMEND SECTION 20-7-944, AS AMENDED, RELATING TO LICENSING ENTITIES WHICH MUST PROVIDE INFORMATION TO THE DEPARTMENT OF SOCIAL SERVICES FOR CHILD SUPPORT ENFORCEMENT, SO AS TO REVISE THE FORM IN WHICH THIS INFORMATION MUST BE PROVIDED; TO AMEND SECTION 20-7-9520, AS AMENDED, RELATING TO SERVING A NOTICE OF FINANCIAL RESPONSIBILITY ON PERSONS OWING CHILD SUPPORT DEBTS, SO AS TO PROVIDE NOTICE FOR A RESCHEDULED NEGOTIATION CONFERENCE; TO AMEND SECTION 20-7-9530, AS AMENDED, RELATING TO PROCEDURES FOR FAILING TO APPEAR FOR A NEGOTIATION CONFERENCE CONCERNING A CHILD SUPPORT OBLIGATION, SO AS TO REQUIRE THE CONFERENCE TO BE RESCHEDULED IF THE PERSON DID NOT RECEIVE PROPER NOTICE; TO AMEND ARTICLE 1, CHAPTER 5, TITLE 43, RELATING TO PUBLIC AID AND ASSISTANCE, SO AS TO, AMONG OTHER THINGS, CONFORM PROVISIONS TO THE FAMILY INDEPENDENCE ACT OF 1995, TO REVISE PROVISIONS TO ASSIST IMPLEMENTING THAT ACT AND TO DELETE OBSOLETE PROVISIONS; TO AMEND SECTION 43-5-580, AS AMENDED, RELATING TO ENFORCEMENT OF SUPPORT OBLIGATIONS OF ABSENT PARENTS, SO AS TO REVISE THE TERM "APPLICANT FOR FAMILY INDEPENDENCE BENEFITS"; TO AMEND SECTION 43-5-1110, RELATING TO DEFINITIONS IN THE SOUTH CAROLINA FAMILY INDEPENDENCE ACT OF 1995, SO AS TO CHANGE THE TERM "AFDC" TO "FAMILY INDEPENDENCE"; TO AMEND SECTION 43-5-1120, RELATING TO EMPLOYMENT AND TRAINING PROGRAMS FOR FAMILY INDEPENDENCE APPLICANTS, SO AS TO PROVIDE THAT CERTAIN APPLICANTS MAY BE REFERRED FOR EMPLOYMENT EVALUATION OR ASSESSMENT RATHER THAN TO A JOB CLUB; TO AMEND SECTION 43-5-1135, RELATING TO STATE AGENCY GOALS TO EMPLOY WELFARE RECIPIENTS, SO AS TO CONFORM TERMS AND TO ESTABLISH ADDITIONAL GOALS; TO AMEND SECTION 43-5-1185, RELATING TO FAMILY SKILLS TRAINING PROGRAMS, SO AS TO MAKE PARTICIPATION IN THIS PROGRAM BASED ON NEED RATHER THAN REQUIRED AS A CONDITION OF ELIGIBILITY; TO AMEND SECTION 43-5-1190, RELATING TO AFDC ELIGIBILITY REQUIREMENTS, SO AS TO CONFORM TERM TO "FAMILY INDEPENDENCE" ELIGIBILITY AND TO DELETE SUBSEQUENT ALCOHOL-RELATED OFFENSES AS A BAR TO ELIGIBILITY; TO AMEND SECTION 43-5-1200, RELATING TO VEHICLE AND OTHER ASSET LIMITS FOR AFDC ELIGIBILITY, SO AS TO CONFORM TERMS AND EXEMPT ONE VEHICLE FROM THE ASSET LIMIT; TO AMEND SUBARTICLE 6, ARTICLE 9, CHAPTER 7, TITLE 20, RELATING TO CHILD SUPPORT ENFORCEMENT PROCEDURES BY ADDING PART IA, SECTION 20-7-1295 SO AS TO PROVIDE PROCEDURES FOR THE ESTABLISHMENT AND ENFORCEMENT OF CHILD SUPPORT ARREARAGE LIENS; TO ADD SECTION 43-5-598 SO AS TO ESTABLISH THE STATE DIRECTORY OF NEW HIRES; TO REPEAL SECTION 43-1-130, RELATING TO THE FEDERAL WORK INCENTIVE PROGRAM; AND TO REPEAL SECTIONS 43-5-510, 43-5-520, 43-5-530, 43-5-540, 43-5-550, 43-5-560, 43-5-570, AND 43-5-640, ALL RELATING TO THE SOUTH CAROLINA EMPLOYABLES PROGRAM ACT.
Be it enacted by the General Assembly of the State of South Carolina:
Notice of financial responsibility
SECTION 1. The 1976 Code is amended by adding:
"Section 20-7-9515. The director shall issue a notice of financial responsibility to an obligor who owes a child support debt or who is responsible for the support of a child on whose behalf the custodian of that child is receiving support enforcement services from the division pursuant to Title IV-D of the Social Security Act. The notice shall state that:
(1) the obligor is required to appear at the time and location indicated in the notice for a negotiation conference to determine the obligor's duty of support;
(2) the division may issue an order of default setting forth the amount of the obligor's duty of support, if the obligor:
(a) fails to appear for the negotiation conference as scheduled in the notice; and
(b) fails to reschedule a negotiation conference before the date and time stated in the notice or within thirty days of service of the notice of financial responsibility, whichever is later; or
(c) fails to send the division a written request for a court hearing before the time scheduled for the negotiation conference or within thirty days of service of the notice of financial responsibility, whichever is later."
Employee tax credit
SECTION 2. Section 12-6-3470 of the 1976 Code, as last amended by Act 462 of 1996, is further amended to read:
"Section 12-6-3470. (A) An employer who employs a person who received Family Independence payments within this State for three months immediately preceding the month the person becomes employed is eligible for an income tax credit of:
(1) twenty percent of the wages paid to the employee for each full month of employment for the first twelve months of employment;
(2) fifteen percent of the wages paid to the employee for each full month of employment during the second twelve months of employment;
(3) ten percent of the wages paid to the employee for each full month during the third twelve months of employment.
The maximum aggregate credit that may be claimed in a tax year for a single employee under this subsection and Section 12-6-3360 is five thousand five hundred dollars.
(B) In addition to the credits provided for in subsection (A) and Section 12-6-3360, an employer who employs a person who received Family Independence payments within this State for three months immediately preceding the month the person becomes employed and employs that person to work full time in a least developed county, as defined in Section 12-6-3360, is allowed a credit in an amount equal to one hundred seventy-five dollars for each full month during the first thirty-six months of employment.
(C) The income tax credit provided by subsection (A) is not allowed unless the employer also makes available health care coverage paid for in part or in whole by the employer for the benefit of each qualified employee for which the credit is earned on the same basis that it is provided for other comparable employees. This credit is allowed from the date of hire for each full month of employment notwithstanding an employer imposed waiting period which must not exceed twelve months.
(D) The Department of Social Services and the South Carolina Employment Security Commission must make information available to employers interested in hiring Family Independence recipients. An employer shall submit an employee release and shall request in writing certification of Family Independence eligibility from the Department of Social Services by the fifteenth day of the first month after the end of the taxable year in which the employer hires the Family Independence recipient. The department has thirty days from the date the employer submits the employee release and request in which to approve or deny in writing certification of Family Independence eligibility.
(E) No income tax credit provided for in subsection (A) may be taken under this section if the position filled by the former AFDC recipient was made available due to the termination or forced resignation of an employee for the purpose of obtaining the tax credit. Nothing in this section creates a private cause of action which does not otherwise exist at law.
(F) A credit claimed under this section but not used in a taxable year may be carried forward fifteen years from the taxable year in which the credit is earned.
(G) For purposes of this section, 'Family Independence payments' means financial assistance provided under Title IV, Part A of the Social Security Act."
Definition revised
SECTION 3. Section 20-7-941(4) of the 1976 Code, as added by Act 102 of 1995, is amended to read:
"(4) 'License' means:
(a) a certificate, license, credential, permit, registration, or any other authorization issued by a licensing entity that allows an individual or is required of an individual to engage in a business, occupation, or profession and includes, but is not limited to, a medical license, teaching certificate, commission and certificate of training from the South Carolina Criminal Justice Academy for a sworn law enforcement officer, and a hunting, fishing, or trapping license for commercial use and the privilege to hunt, fish, or trap or hold a hunting, fishing, or trapping license for commercial use;
(b) a driver's license and includes, but is not limited to, a beginner's or instruction permit, a restricted driver's license, a motorcycle driver's license, or a commercial driver's license;
(c) a hunting, fishing, or trapping license for recreational purposes and the privilege to hunt, fish, or trap or hold a hunting, fishing, or trapping license for recreational purposes;
(d) a watercraft registration."
Form of reporting
SECTION 4. Section 20-7-944 of the 1976 Code, as last amended by Act 459 of 1996, is further amended to read:
"Section 20-7-944. In the manner and form prescribed by the division, all licensing entities monthly shall provide the division information on licensees for use in the establishment, enforcement, and collection of child support obligations including, but not limited to:
(1) name;
(2) address of record;
(3) social security number;
(4) employer's name and address;
(5) type of license;
(6) effective date of license or renewal;
(7) expiration date of license;
(8) active or inactive license status."
Service of notices
SECTION 5. Section 20-7-9520 of the 1976 Code, as last amended by Act 452 of 1996, is further amended to read:
"Section 20-7-9520. (A) The division shall serve a notice of financial responsibility on the obligor not less than thirty days before the date stated in the notice for the negotiation conference:
(1) in the manner prescribed for service of process in a civil action; or
(2) by an employee appointed by the division to serve process; or
(3) by certified mail, return receipt requested, signed by the obligor only. The receipt is prima facie evidence of service.
(B) Notice of a rescheduled negotiation conference must be served on the obligor not less than ten days before the date stated in the notice of continuance of negotiation conference."
Orders of default; defense thereto
SECTION 6. Section 20-7-9530 of the 1976 Code, as last amended by Act 452 of 1996, is further amended to read:
"Section 20-7-9530. (A) If an obligor fails to appear for a negotiation conference scheduled in the notice of financial responsibility or fails to reschedule the negotiation conference before the date and time stated in the notice of financial responsibility or if the obligor fails to serve the division with a written request for a court hearing before the time scheduled for the negotiation conference or within thirty days of the date of service of the notice of financial responsibility, whichever is later, the division shall issue an order of default in accordance with the notice of financial responsibility. The order of default must be approved by the court and shall include:
(1) the amount of the monthly support obligation and instructions on the manner in which it must be paid;
(2) the amount of the arrearage due and owing and instructions on the manner in which it must be paid;
(3) the name of the custodian of the child and the name and birth date of the child for whom support is being sought;
(4) other information as set forth in regulations promulgated pursuant to the Administrative Procedures Act.
(B) A copy of an order of default issued pursuant to Subsection (A), proof of service, and an affidavit of default must be filed with the family court in the same manner and has the same force and effect as provided for in Section 20-7-9525(B).
(C) The determination of the monthly support obligation must be based on the child support guidelines as set forth in Sections 20-7-852 and 43-5-580.
(D) If an affidavit of service shows that the obligor has been afforded less than the required thirty days notice of the negotiation conference, the negotiation conference must be rescheduled. The obligor must be given at least ten days notice of the rescheduled conference, pursuant to Section 20-7-9520. If the obligor fails to appear for the rescheduled negotiation conference and fails to request a court hearing before the date of the rescheduled negotiation conference, the division shall issue an order of default in accordance with subsection (A)."
Public aid, assistance, and relief
SECTION 7. Article 1, Chapter 5, Title 43 of the 1976 Code is amended to read:
Section 43-5-10. The Department of Social Services shall be responsible for maintaining uniformity in the administration of public welfare throughout the State. The director shall be the only person authorized to determine and implement the policies of the department. The department shall issue regulations pursuant to Sections 1-23-10, et seq., whenever changes in federal laws and regulations supersede existing state statutes. In adopting regulations the department shall strive for clarity of language which may be readily understood by those administering aid and by those who apply for or receive aid.
Section 43-5-15. Applications for assistance under the provisions of this chapter shall be made as provided in this chapter and when no such provision has been made in accordance with the manner and form prescribed by the department.
Section 43-5-20. (a) It is the intent of the General Assembly that all payments of aid to families with dependent children shall be utilized and managed in such manner as to support the needy child and his eligible caretaker. Such payments shall include current payments as well as any portion of past payments returned to a current or former recipient.
(b) Whenever the department has reason to believe that any payment of aid to dependent children is not being or may not be used in the best interests of the child, the department shall provide counseling to the recipient and shall provide that continued failure to so use such payments after counseling has begun may result in the appointment of a protective payee in accordance with Section 43-5-65.
Section 43-5-24. When an individual applies for assistance through the Aid to Families with Dependent Children Program, the Department of Social Services must provide the applicant with information on methods of contraception and family planning, excluding abortion counseling. The Department of Health and Environmental Control shall provide a brochure or some similar information packet on contraceptive methods and family planning to the Department of Social Services which the Department of Social Services can easily reproduce and distribute. Abortion must not be included in the brochure or information packet provided by the Department of Health and Environmental Control. If the applicant expresses an interest in scheduling an appointment with a local health department to obtain further information and counseling on contraceptive methods and family planning, the Department of Social Services shall assist the applicant in scheduling the appointment.
Section 43-5-25. Any person, other than a needy child, who wilfully and knowingly receives or uses any part of a payment of aid to dependent children for a purpose other than in the best interest of the needy children and any eligible caretaker is deemed guilty of a misdemeanor and, upon conviction, shall be fined not more than five hundred dollars or be imprisoned for not more than one year or both.
If such misuse occurs, a protective payee will be appointed in accordance with Section 43-5-65 to manage assistance funds intended for the otherwise eligible child.
Section 43-5-30. (a) If an overpayment or underpayment is made under the Family Independence Program, the department shall make every effort to correct payment. If the agency decides to terminate benefits to a client and payments are made pending an appeal of the agency's decision, these payments must be considered overpayment if the agency's decision is upheld.
(b) Overpayment means a financial assistance payment received which exceeds the amount for which the client was eligible. Underpayment means a financial assistance payment received which is less than the amount for which the client unit was eligible.
(c) The agency can recover an overpayment by:
(1) receiving a payment from the client or former client; or
(2) by reducing the amount of any future aid payable to the client. The adjustment in future aid shall not reduce the family's monthly income to less than ninety percent of the amount payable to a family of the same composition with no other income. If no payment is made for a month solely by reason of the recovery of an overpayment, that individual is still considered a recipient of assistance for that month for purposes of enrollment date.
(d) If an individual has received an overpayment and does not repay the agency and is no longer receiving aid so that future payments cannot be reduced, the agency shall make recovery by taking appropriate action under the laws of the State against the income or resources of the individual or family.
(e) Correction of underpayments of assistance must be made to current recipients and those who would be current recipients if the error causing the underpayment had not occurred. For the purposes of determining continued eligibility and amount of assistance, the retroactive corrective payments are not considered income or a resource in the month paid nor in the next following month.
Section 43-5-40. It is unlawful for a person to solicit, disclose, receive, make use of, authorize, knowingly permit, participate in, or acquiesce in the use of a list, name of, or any information concerning persons applying for or receiving public aid or assistance, directly or indirectly derived from the records, papers, files, or communications of the State or county departments of social services or acquired in the course of the performance of official duties, except for purposes directly connected with the administration of Chapters 1, 3, 5, 7, 9, 19, and 23 or of old age assistance, aid to the blind, aid to dependent children, or general relief and in accordance with the regulations of the department.
A person who violates the provisions of this section is guilty of a misdemeanor and, upon conviction, must be fined in the discretion of the court or imprisoned not more than three years, or both.
Section 43-5-45. The department shall provide timely and adequate notice in all cases of intended action to discontinue, terminate, suspend, or reduce an assistance grant except in those cases where adequate notice alone would be consistent with the requirements of state law or regulation.
'Timely notice' means notice which is mailed at least ten days before the intended change would be effective.
'Adequate notice' means notice which is mailed not later than the date of action.
Both timely and adequate notice shall include a statement of what action the agency intends to take, the reasons for the intended action, an explanation of the individual's right to request an administrative hearing on the propriety of the intended action and the circumstances under which assistance is continued if a hearing is requested.
Section 43-5-50. In the event that a recipient of aid to families with dependent children does not receive an assistance check, or if such check is lost, stolen, or destroyed after receipt but before it is cashed, the county office may authorize a one-time grant in the amount of the original check provided the recipient files an affidavit, under penalty of perjury, stating the facts of the loss, theft, destruction, or nonreceipt of the check and setting forth all material facts relative to its loss, theft, destruction, or nonreceipt. The affidavit shall further witness the recipient's understanding of his obligation, should the lost, stolen, destroyed, or nonreceived check come into his possession, to return such check immediately to the county office and that cashing or attempting to cash such check constitutes fraud.
Section 43-5-60. All assistance granted under Chapters 1, 3, 5, 7, 9, 19, and 23 shall be deemed to be granted and to be held subject to the provisions of any amending or repealing act that may be passed and no recipient shall have any claim for compensation, or otherwise, by reason of his assistance being affected in any way by an amending or repealing act, nor shall he have any claim against the State for any failure upon the part of the General Assembly in any year to appropriate sufficient funds to pay grants previously made.
Section 43-5-65. (a) As a condition of eligibility, a needy family applying for Family Independence benefits shall complete an application of eligibility containing a written declaration of information as may be required to establish eligibility and amount of aid. The application shall include blanks, wherein must be stated the names of all children, adults, or minor parents applying for or receiving aid, their birthdates and Social Security numbers; their present place of residence; their income received from employment, the absent parent, governmental social insurance or aid programs, gifts, sale of real or personal property, interest, dividends, or from any other source; and any interest in property, real or personal.
Failure to provide this information shall result in a finding of ineligibility of benefits for Family Independence benefits. The department shall provide assistance as needed to complete the application and shall ensure that all applicants or recipients have or promptly apply for and obtain a Social Security number. No assistance may be granted to Family Independence applicants or recipients until a valid Social Security number has been provided to the department for each member of the family for whom aid is sought or when numbers are not available until there is proof that application for the Social Security number has been made. The department shall assist the applicant or recipient in obtaining a Social Security number through procedures adopted in cooperation with the Social Security Administration or the applicant or recipient may apply for a Social Security number at the Social Security Administration office. For purposes of state-funded or Title IV-E Foster Care, the application for the Social Security number must be made by the state or local department. The application for eligibility also shall provide that, as a condition of eligibility for aid, each applicant or recipient shall:
(1) Assign to the State any rights to support from any other person the applicant may have in his own behalf or in behalf of any other family member for whom the applicant is applying for or receiving aid and which have accrued at the time the assignment is executed or which may accrue in the future; however, by accepting public assistance for or on behalf of a child or children, or by making application for services under Title IV-D or through placement of a child or children in state-funded foster care or under Title IV-E, except where good cause as determined by the department exists, the recipient or applicant is considered to have made an assignment to the State Department of Social Services of any rights, title, and interest to any support obligation which is owed for the child or children or for the absent parent's spouse or former spouse who is the recipient or the applicant with whom the child is living, if and to the extent that a spousal support obligation has been established and the child support obligation is being enforced pursuant to Title IV-D of the federal Social Security Act. The assignment to the department is considered to have been made up to the amount of public assistance money or foster care board payments paid for or on behalf of the child or children for that period of time as the public assistance monies or foster care board payments are paid. The assignment consists of all rights and interest in any support obligation that the recipient may be owed past, present, or future by any person up to the amount of public assistance money paid to the recipient for or on behalf of the minor child or children or a child in foster care. The department is subrogated to the rights of the child or children or the person having custody of the child or children to collect and receive all support payments. The department has the right to initiate a support action in its own name or in the name of the recipient to recover payments ordered by the courts of this or any other state or to obtain a court order to initiate these payments including an action to determine the paternity of a child.
(2) Cooperate with the State in establishing the paternity of a child born out of wedlock with respect to whom aid is claimed and in obtaining support payments for the applicant and for a child with respect to whom the aid is claimed or in obtaining any other payments or property due the applicant of the child and that, if the relative with whom a child is living is found to be ineligible because of failure to comply with the requirements of items (1) and (2), aid for which the child is eligible must be provided in the form of protective payments. The department shall establish criteria in accordance with federal regulations to determine whether action to establish paternity and secure support is not in the best interest of a child.
(b) The term 'protective payments' shall mean payments with respect to any dependent child which are made to another individual who, as determined in accordance with standards prescribed by the department, is interested in or concerned with the welfare of such child or relative, or are made on behalf of such child or relative directly to a person furnishing food, living accommodations, or other goods, services, or items to or for such child.
(c) Prior to determinations of eligibility, the department shall conduct a personal interview with the adult members of the family or with the caretaker relatives of the needy children.
(d) The department shall redetermine all elements of eligibility periodically but not less frequently than every twelve months. The department may require the family to complete a new application at the time of each redetermination.
(e) If the application is mailed to the family, it must be accompanied by an addressed envelope for its return. In no event may the acts of mailing to the recipient or the recipient's return of a completed application to the department be substituted in lieu of a personal interview.
(f) Each adult member of the family shall provide, under penalty of perjury the information necessary to complete the application. The applications used by the department shall contain a statement that the applicant or recipient understands that he has an obligation to report immediately to the department any changes of address, household composition, employment, loss of employment, or any other factor which may affect eligibility and that the declarations in the application are correct and complete to the best of the applicant's or recipient's knowledge or belief and are made under penalty of perjury. The statement shall clearly specify that failure to report changes in circumstances that may affect eligibility and grant amount within ten calendar days of the day on which the change becomes known to the recipient constitutes withholding of information and permits the department to recover any overpayment occasioned or caused by the withholding in accordance with Section 43-5-30. This application must be signed by the applicant or recipient of assistance or any person completing the application for an applicant or recipient unable to do so himself.
The person completing the application for an applicant or recipient unable to do so himself must sign a statement attesting to the fact that this section has been explained to the applicant and to the belief that the applicant understands.
Section 43-5-70. The department shall require that all persons applying for assistance shall provide acceptable identification and proof of residence and the department shall by regulation specify what constitutes adequate identification and proof of residence. The department shall require that all reports of employment or income be verified by letter or direct contact with the employer of the applicant or recipient and if the verification is made by letter, a stamped self-addressed envelope shall be enclosed and request for prompt return shall be made. The department shall verify all other information related to the eligibility in any case in which there is reason to believe that the applicant has falsified, misrepresented, or omitted any material facts such as age and number of children, real and personal property, including bank accounts and insurance policies or any other resources. No person shall be eligible for aid to families with dependent children unless he is a resident of the State.
If a recipient is or will be absent from the State for a period of thirty days or longer, the department shall consider the recipient ineligible for assistance.
It is not the intent of the General Assembly in enacting this section to create any durational residence requirement.
Section 43-5-75. The director or his authorized agent may, after signed authorization from the applicant or recipient, request and receive from any bank or other financial institution doing business in South Carolina information with respect to the transaction with any such institution of any applicant for or recipient of any form of aid or relief under this article and it shall be the duty of the officers and employees of such institution to furnish the information within ten working days to the department pursuant to the written request of the director.
Section 43-5-95. Aid may be granted under the provisions of this section to or in behalf of an eligible child over the age of eighteen but not yet nineteen, if he is a full-time student in a secondary school, or in the equivalent level of vocational or technical training.
Section 43-5-120. (a) The Department of Revenue shall provide the director or his designees an abstract of the income tax return requested, or provide information concerning any item of income or expense, including support claimed to have been provided to dependent children or step-children, contained in the income tax return or disclosed by any investigation of the income or return of the applicant or recipient.
(b) The information obtained pursuant to this section shall be used or disclosed only for the purpose of enabling the department to verify or determine the eligibility of an applicant or recipient or to enable the Department of Revenue to determine whether tax fraud has been committed.
(c) The applicant or recipient whose income tax records have been requested from the Department of Revenue shall be notified by mail that such request has been made at the time of the request.
(d) Any violation or suspected violation of state or federal law determined under this section shall be referred to the appropriate state or federal law enforcement authorities.
(e) The director or his designees shall be subject to the provisions of Section 12-7-1680 of the 1976 Code regarding the confidentiality of state income tax records.
Section 43-5-125. The term 'living with' means that the caretaker relative and the child maintain a common place of residence. The requirement shall be considered met if a home and family setting is maintained or is being established and the caretaker relative exercises responsibility for the care and control of the child even though the child or caretaker is temporarily absent from time to time. A child is considered to be 'living with' the caretaker relative even though he is under the jurisdiction of the court or is in the legal custody of an agency that does not have physical possession of the child.
Temporary absences by either the caretaker relative or the child from the home for purposes such as vacationing, visiting, hospitalization, convalescing, and school attendance shall not constitute a break in the 'living with' requirement. The temporary absence may not exceed thirty days; however, the department may extend the absence, in extenuating circumstances, for up to an additional sixty days if it is determined that a longer absence would serve the best interests of the family.
Section 43-5-130. (a) The department shall, in determining need, take into consideration any income or resources of any relative claiming aid to families with dependent children, whose needs the department determines would be considered in determining the need of a child or relative claiming such aid, as well as any expense reasonably attributed to the earning of any such income.
(b) Income, as used in subsection (a), includes any benefit in cash which is in fact currently available to the individual or is received by him as a result of current or past labor or service, or business activities.
(c) To be considered in determining eligibility for, and amount of grant, income must, in fact, be currently available to the applicant or recipient. However, the applicant or recipient shall, as a necessary condition of determining eligibility:
(1) provide all information necessary to income determination;
(2) take all actions necessary to obtain unconditionally available income. Income shall be considered unconditionally available if the applicant or recipient has only to claim or accept such income, including any type of governmental benefits, social insurance, and private pension or benefits plan.
(d) The department shall require evidence which establishes the gross and net amount of income received and the time and frequency of receipt. Documents and records in the possession of the applicant or recipient together with a written statement made under penalty of perjury that such information is correct and complete to the best of the applicant or recipient's knowledge or belief constitute adequate sources of evidence in absence of conflicts. Such documents or records shall be returned promptly to the applicant or recipient after necessary copies have been made and placed in the case records.
Section 43-5-140. (a) It shall be the duty of the department to ensure that every applicant for or recipient of aid to families with dependent children be informed not less frequently than annually as to the provisions of eligibility and his responsibility for reporting all facts material to a correct determination of eligibility and amount of grant. After such information has been provided, the department shall require the recipient and caseworker to execute a formal acknowledgment, on a form prescribed for such purpose, describing what steps were taken to explain the eligibility and reporting requirements to the recipient and that such explanation was understood by the recipient.
(b) Each applicant for or recipient or payee of such aid to families with dependent children shall be responsible to report accurately and completely those facts required of him, pursuant to the explanation provided by the department.
(c) The failure of an applicant or recipient to report facts which may affect eligibility and grant determination within ten days of the date upon which the applicant or recipient became aware of such facts shall constitute a wilful withholding of such information and permit the department to recover any overpayment occasioned or caused by the wilful withholding. Such facts may include, but are not limited to, composition of household, address or any other factor which may affect eligibility, or failure or refusal to obtain unconditionally available income. If appropriate, recoupment proceedings may be initiated.
(d) When the department receives information that would result in a change in grant amount or eligibility, the department shall take action to adjust the grant or redetermine eligibility, consistent with notice requirements, within ten days of receipt of such information.
Section 43-5-145. Investigation of each application shall be made by the county departments as provided in Chapters 1, 3, 5, 7, 9, 19, and 23 or as required by the state department.
Section 43-5-148. Family Independence benefits shall begin on the date of application if the benefit group met all the eligibility conditions on that date. Payments for partial months must be prorated by the ratio of the days in the month to the date of application.
Section 43-5-150. In the event an application is denied or the amount or terms of a grant or of any withdrawal or modification thereof be deemed inadequate or unjust by the applicant or recipient, the applicant or recipient or anyone acting in his behalf may demand a review of his case before the department by filing his written request for such review with the county department not more than sixty days after notice of its action shall have been received. The county department shall, within ten days, certify its records and data on the case and such additional information as it deems relevant to the department. The department shall promptly grant to the applicant or recipient an opportunity for a fair hearing upon the questions raised by the applicant or recipient. At this hearing any party in interest may appear and present any relevant facts. The department shall produce such further evidence as it may deem necessary and shall certify its findings and decision on the case back to the county department concerned. Appeals from the decision of the department may be made to an administrative hearing examiner pursuant to the Administrative Procedures Act.
Section 43-5-155. If an application is not acted upon by the county department within the time limitations specified in Section 43-5-148 the applicant may appeal to the state department in the manner and form prescribed in Section 43-5-150.
Section 43-5-160. The state department may also, upon its own motion or at the request of the applicant, review any decision of a county department and may consider any application upon which a decision has not been made by the county department within a reasonable time.
Section 43-5-165. Upon any appeal under Section 43-5-150 or any review under Section 43-5-160, the state department may make such additional investigation as it may deem necessary and shall make such decision as to the granting of assistance and the amount of assistance to be granted the applicant as in its opinion is justified and in conformity with the provisions of Chapters 1, 3, 5, 7, 9, 19, and 23. As to any action taken by the state department under this section, the state department shall grant the applicant or recipient an opportunity for a fair hearing as provided under Section 43-5-150.
Section 43-5-170. The department may issue subpoenas for witnesses and compel their attendance and the production of papers and writings and the director and employees designated by him may administer oaths and examine witnesses under oath.
Section 43-5-175. All decisions of the state department shall be binding upon the county department involved and shall be complied with by such county department.
Section 43-5-180. No person shall make any charge or receive any fee for representing the applicant or recipient of assistance in connection with the granting of any assistance provided for in Chapters 1, 3, 5, 7, 9, 19, and 23, except as to criminal proceedings and except upon appeal to the department, and then only in a reasonable amount and subject to the regulations of the department.
Section 43-5-185. Any public officer not charged with the administration of Chapters 1, 3, 5, 7, 9, 19, and 23 who attempts to influence a decision of the county department or state department respecting the application of any person for assistance or respecting the assistance to be paid or being paid shall be guilty of a misdemeanor and, upon conviction, shall be punished by a fine not exceeding five hundred dollars or imprisonment not exceeding six months, or both, in the discretion of the court. The giving of information within the personal knowledge of such officer, in writing, shall not constitute an offense under this section.
Section 43-5-190. All amounts paid or payable as assistance shall be exempt from any tax levied by the State or any subdivision thereof, shall be exempt from levy and sale, attachment or any other process whatsoever, and shall be inalienable and unassignable in advance in any form and, in case of bankruptcy, shall not pass to the trustee or other person acting on behalf of the creditors of the recipient of assistance.
Section 43-5-200. When a recipient dies after issuance but before delivery or negotiation of his assistance check for the month in which his death occurs, endorsement of such check without recourse by the county director of social services to the 'spouse or nearest living relative' of the recipient shall be sufficient authority to the drawee bank to pay such check.
Section 43-5-220. (a) Every applicant for family independence benefits who has a child by a parent who is alive but not living in the home at the time of approval for family independence must be immediately referred to the designated child support official of the department. The department shall be responsible for taking all steps necessary to identify, locate, and obtain support payments from absent parents.
(b) The department shall establish a scale of suggested minimum contributions to assist courts in determining the amount that an absent parent should be expected to pay toward the support of a dependent child. The scale shall include consideration of gross income, shall authorize expense deductions including deductions for taxes for determining net income, shall designate other available resources to be considered and shall specify the circumstances which should be considered in reducing liability on the basis of hardship. Copies of this scale shall be made available to courts, county attorneys, circuit solicitors, and to the public. It is intended that the scale formulated pursuant to this section be optional, and that no court or support official be required to use it.
(c) In all cases in which the whereabouts of the absent parent is known, the department shall, immediately upon approval of the application for assistance, notify the absent parent of the filing of the application and of his responsibility to complete and return a written statement of his current monthly income, his total income over the past twelve months, a description of real and personal property owned by him, together with an estimate of its value, the number of dependents for whom he is providing support, the amount he is contributing regularly toward the support of all children for whom application for aid to families with dependent children has been made, his Social Security number, his itemized monthly living expenses and such other information as the department determines to be pertinent in determining his ability to support his children.
The absent parent shall complete and return such statement to the department within ten days after notification by the department. The department may request the absent parent to report for a personal interview.
If the absent parent statement is not completed within ten days after notification, the department shall cause prompt personal service to be made. If the written statement is not completed and returned within ten days after personal service, the department shall immediately refer the matter for prosecution for nonsupport.
(d) When the department has obtained sufficient information concerning the absent parent, it shall immediately determine his ability to support his children and shall obtain a court order specifying an appropriate amount of support in accordance with the scale of suggested minimum contributions as provided in subsection (b). If the absent parent is residing out of the county, but within the State, and his whereabouts are known, the department shall obtain the court order in the court of competent jurisdiction as set forth in Section 14-21-830. Court orders of support shall in all cases specify that the payment of support shall be made directly to the department as reimbursement for assistance and not to the spouse of the absent parent. The support rights assigned to the State shall constitute an obligation owed to the State by the individual responsible for providing such support. Such obligation shall be deemed for collection purposes to be collectible under all applicable state and local processes. The amount of such obligations shall be:
(1) The amount specified in a court order which covers the assigned support rights;
(2) If there is no court order, an amount determined by the State in accordance with a formula approved by subsection (b);
(3) Any amounts collected from an absent parent under the plan shall reduce, dollar for dollar, the amount of his obligation. A debt which is a child support obligation assigned to the department under this section is not released by a discharge in bankruptcy under the Bankruptcy Act.
(e) Failure of the absent parent to comply with his support obligation shall be referred to the court having jurisdiction of the matter for appropriate proceedings.
(f) Nothing in this section shall be construed to relieve the department from complying with the provisions of Section 402 (a) (11) of the Social Security Act.
(g) Material falsification of information on the statement provided pursuant to Subsection (d) shall constitute a misdemeanor.
(h) In the case of an individual not otherwise eligible for collection services, a fee may be imposed in accordance with federal law, regulations, and guidelines.
(i) The department may submit to the Department of Revenue for collection and set off any debt for past-due support, including health care expenses, owed to the department or owed to an individual not otherwise eligible for collection services who has made application to the department. The debt for past-due support must be at least sixty days in arrears and is in excess of twenty-five dollars as provided in Section 12-7-2240. At the time of the submission, the department shall notify the debtor that his state tax refund will be subject to a debt for past-due support. The notice shall set forth the name of the debtor, the amount of the claimed debt, the intention to set off the refund against the debt, the taxpayer's opportunity to give written notice to contest the set off within thirty days of the date of mailing of the notice, the appropriate office of the department to which the application for a hearing must be sent, and the fact that failure to apply for a hearing in writing within the thirty-day period will be considered a waiver of the opportunity to contest the set off. If the debtor makes written application to contest the set off within thirty days of notification, the department shall provide an opportunity for a hearing and is responsible for refunding any monies wrongfully collected. If no application is made, the debtor's refund must be used to set off the amount owed. From the amount transferred from the Department of Revenue, the department shall reimburse the Department of Revenue for expenses incurred in administering this program. In the case of an individual not otherwise eligible for collection services, a fee must be imposed by the department to cover all costs. The department shall request that the Department of Revenue send to the department notice of the home address, corrected social security number, or additional Social Security numbers, if more than one is used, of any taxpayer whose name is submitted to the Department of Revenue under this subsection.
(j) The department may submit to the Internal Revenue Service and the State Department of Revenue, for federal and state tax refund offsets, the name of any obligor who is delinquent in paying court-ordered child support and who qualifies for submittal under federal or state law even if the obligor is in compliance with a court order requiring periodic payments toward satisfaction of the delinquency or even if the delinquent amount has been placed in abeyance by court order.
Section 43-5-222. From the amounts collected by the South Carolina State Department of Social Services for children and the parents of such children who are currently recipients of Aid to Families with Dependent Children (AFDC), pursuant to Section 43-5-220 of the 1976 Code, the department may distribute these amounts as follows:
(1) of amounts collected which represent monthly monetary support obligations, the first seventy-five dollars of the monthly payment must be paid to the AFDC family and thereafter must be increased up to the amount of the monthly support obligation;
(2) if the amount collected is in excess of the amounts required to be distributed under item (1), the excess must be retained by the department as reimbursement for AFDC payments made to the family for which the State has not been reimbursed. Of the amount retained by the department, the department shall determine the federal government's share so that the department may reimburse the federal government, if required, to the extent of its participation in the financing of the AFDC payment.
(3) if the amount collected is in excess of the amounts required to be distributed under (1) and (2) the family must be paid the excess.
(4) payments made to the family in item (1) may not be used in determining the amount paid, if any, in AFDC or other welfare benefits.
Section 43-5-225. (a) A central registry of records shall be maintained in the department showing as far as it is known with respect to any parent who has deserted or abandoned any child receiving aid to families with dependent children:
(1) the full and true name of such parent together with any known aliases;
(2) date and place of birth;
(3) physical description;
(4) social security number;
(5) occupation and any special skills he may have;
(6) military status and Veterans Administration or military service serial number;
(7) last known address and the date thereof;
(8) number of the driver's license;
(9) any further information that may be of assistance in locating the person.
(b) To effectuate the purposes of this section, the department shall request from all departments, commissions, boards or other agencies of the State or any of its political subdivisions such assistance and data as will enable the department and other public agencies to carry out their duties to locate deserting parents and to enforce their liability for the support of their children. The department shall utilize the 'Parent Locator Service' pursuant to establishment in the Department of Health, Education and Welfare by filing in accordance with Section 453(b) of the Social Security Act.
(c) Any records established pursuant to the provisions of this Section shall be available only to public welfare offices, county attorneys, circuit solicitors, probation departments, the Attorney General, central registries in other states and courts having jurisdiction in support or abandonment proceedings or action and only for the purposes for which the records have been established.
Section 43-5-230. There is hereby created in the office of the State Treasurer a revolving fund to be designated as the Public Welfare Cooperative Support Program Fund which shall be used by the department in carrying out such purposes as it deems necessary. All monies in the funds are hereby appropriated to the department for such purposes and shall be paid without further appropriation under requisition or voucher drawn on the State Treasurer in the usual manner.
Section 43-5-235. To the extent permitted by federal law, the department may enter into annual agreements with county governments, clerks of court, sheriffs, and other law enforcement entities having jurisdiction in that county to reimburse and to pay federal financial participation and incentives pursuant to the terms of the agreement to the appropriate contracting entity for a portion of the cost of developing and implementing a child support collection and paternity determination program for:
(1) securing support for persons receiving state public assistance and reimbursement of medical assistance from the legally responsible spouse or parent of assistance recipients;
(2) establishing paternity of children born out of wedlock who are receiving aid to families with dependent children and to secure support for them;
(3) all children who have sought assistance in securing support whether or not they are eligible for aid to families with dependent children and regardless of the economic circumstances. To the extent permitted by federal law, a fiscal incentive and federal financial participation must be paid to the department and provided to the entity providing the service for the collection and enforcement of child support obligations. These monies must be paid to the appropriate county treasurer or county finance office on a monthly basis and deposited into a separate account for the entity providing the service for the exclusive use by this entity for all activities related to the establishment, collection, and enforcement of child support obligations for the fiscal year in which the payments are earned and may be drawn on and used only by the entity providing the service for which the account was established. Monies paid to the contracting entity pursuant to this section may not be used to replace operating funds of the budget of the entity providing the service. Funds in the special account not encumbered for child support activities revert to the general fund of the county at the end of the fiscal year in which they were earned. Each local entity shall enter into a support enforcement agreement with the department as a condition of receiving the fiscal incentive and federal financial participation. To the extent that fiscal incentives are paid to the department and are not owed under the agreement to the contracting entity, these fiscal incentives must be reinvested in the department's Child Support Enforcement Program to increase collections of support at the state and county levels in a manner consistent with the federal laws and regulations governing incentive payments.
Section 43-5-240. Any county desiring to obtain the benefits of appropriations from the Public Welfare Support Reimbursement Fund shall secure the formal joinder of the circuit solicitor and of the court having jurisdiction of support cases in that county in a joint plan and a cooperative support program agreement with the department and the execution of a cooperative support program agreement with the department. The execution of such agreement is hereby authorized.
Section 43-5-245. (a) The department shall prescribe the time at and the form on which the counties and judicial districts shall submit to the department annual plans for the total staff and equipment needs and annual estimates of the expenditures of the county for the staffing and operations of the child support program for the coming agreement year.
(b) Upon approval of an annual plan and the estimated expenditures for an improved program, the department shall enter into a contract pursuant to Section 43-5-235."
Referral
SECTION 8. Section 43-5-580(a) of the 1976 Code is amended to read:
"Section 43-5-580. (a) Every applicant for Family Independence benefits who has a child or children whose parent is alive but not residing in the home must be referred to the Office of Child Support Enforcement within two working days of the furnishing of aid or the determination that an individual is a recipient of Family Independence benefits. The department is responsible for taking all steps necessary to identify, locate, and obtain support payments from absent parents."
Definitions
SECTION 9. Section 43-5-1110 of the 1976 Code, as added by Act 102 of 1995, is amended to read:
"Section 43-5-1110. As used in this article:
(1) 'Family Independence' or 'Aid to Families with Dependent Children' or 'FI' or 'AFDC' means cash payments or stipends paid to individuals who meet established eligibility criteria.
(2) 'Department' means the South Carolina State Department of Social Services.
(3) 'Welfare' means cash assistance payments through the Family Independence program formerly known as the Aid to Families with Dependent Children program which must be provided as a stipend to assist families to become employed.
Job club; employment evaluations and assessment referrals
SECTION 10. Section 43-5-1120(B) of the 1976 Code, as added by Act 102 of 1995, is amended to read:
"(B) An applicant who appears to be eligible for welfare assistance and who would be required to participate or who volunteers to participate in the department's employment and training program must be referred to an employment and training unit. An applicant referred must conduct an initial job search and shall provide evidence of this search by listing the employer contacted, the date of the visit with the employer, and the name and telephone number of the person with whom the applicant spoke. An applicant who does not provide this information must not be approved for assistance until the information is provided. An employment assessment must be conducted on an applicant who is unsuccessful in securing employment to determine if the applicant is job ready. An applicant who has been employed twelve out of the previous twenty-four months or who has graduated from high school or has obtained a GED must be enrolled in a job club or referred for evaluation or assessment or other services conducive to employment. Following participation in a job club, the applicant must conduct a job search for an additional period of no more than sixty days or until the applicant obtains employment, whichever occurs first. An applicant who is not job ready or a job-ready participant who is unsuccessful in the job search must be evaluated for barriers to employment. An individual agreement containing training and employment requirements must be developed for the participant. For purposes of this subsection 'job club' means a group or individual job readiness training session where participants learn job finding and job retention skills."
Hiring and recruitment goals
SECTION 11. Section 43-5-1135 of the 1976 Code, as added by Act 102 of 1995, is amended to read:
"Section 43-5-1135. Each agency which is a member of the South Carolina Retirement System shall establish recruitment and hiring goals which shall target ten percent of all jobs requiring a high school diploma or less to be filled with family independence or food stamp recipients. A question concerning receipt of Family Independence benefits or food stamps may be added to the state employment application for purposes of targeting these applicants. Each agency annually shall report to the State Office of Human Resources the number of Family Independence and food stamp recipients employed in comparison to the established goal."
Eligibility
SECTION 12. Sections 43-5-1185 and 43-5-1190 of the 1976 Code, as added by Act 102 of 1995, are amended to read:
"Section 43-5-1185. As a condition of eligibility for Family Independence benefits, each adult recipient determined to be in need of family skills by his Family Independence case manager, and minor mother recipient must participate in a family skills training program which must include, but is not limited to, parenting skills, financial planning, and health information. Whenever possible and practical, the department shall coordinate with comparable staff of other state and local agencies in providing these services.
This program must include an alcohol and other drug assessment when it is determined by the department that an assessment is appropriate. The department shall coordinate with the Department of Alcohol and Other Drug Abuse Services to provide the proper assessment of the recipient and training of the department personnel who are to conduct the assessment. If the recipient is determined to be in need of alcohol and other drug abuse treatment, the department shall coordinate the services with the Department of Alcohol and Other Drug Abuse Services and shall include the individually determined terms and conditions of the treatment in the recipient's agreement with the department.
This program must include a family planning assessment if it is determined by the department that an assessment is appropriate. The department shall coordinate with the Department of Health and Environmental Control to provide the AFDC family with education, evaluation, and counseling, consistent with Medicaid regulations. State funds appropriated for family planning must not be used to pay for an abortion.
Section 43-5-1190. A Family Independence recipient who, while receiving FI benefits, has been identified as requiring alcohol and other drug abuse treatment service or who has been convicted of an alcohol related offense or a controlled substance violation or gives birth to a child with evidence of the effects of maternal substance abuse and the child subsequently is shown to have a confirmed positive test performed on a suitable specimen within twenty-four hours of birth, is ineligible for FI assistance unless the recipient submits to random drug tests and/or participates in an alcohol or drug treatment program approved by the Department of Alcohol and Other Drug Abuse Services. Upon completion of the program, if a subsequent random test or subsequent conviction for a controlled substance violation occurs, the recipient is ineligible for FI benefits. Benefits may be reinstated at a later time upon reapplication, if the recipient first undergoes a conciliation assessment, including review and/or modification of the prescribed individual treatment program and agreement, and then agrees to comply with its terms and demonstrates compliance for a period of not less than sixty days. Testing of a child's specimen pursuant to this section must be conducted by a medical laboratory certified by the College of American Pathologists or the National Institute of Drug Abuse for Forensic Urine Drug Testing."
Asset limit exemption
SECTION 13. Section 43-5-1200 of the 1976 Code, as added by Act 102 of 1995, is amended to read:
"Section 43-5-1200. One licensed vehicle per licensed driver is exempt from the asset limit for Family Independence participants in work or training. The asset limit for all other assets is two thousand five hundred dollars."
Child support arrearage liens
SECTION 14. Subarticle 6, Article 9, Chapter 7, Title 20 of the 1976 Code is amended by adding:
Section 20-7-1295. (A) A child support obligation which is unpaid in an amount equal to or greater than one thousand dollars, as of the date on which it was due, is a lien in favor of the obligee in an amount sufficient to satisfy unpaid child support, whether the amount due is a fixed sum or is accruing periodically. An amount of restitution established by the Department of Social Services, Child Support Enforcement Division, or its designee (division) or the family court is due and payable as of the date the amount is established. The lien shall incorporate any unpaid child support which may accrue in the future and does not terminate except as provided in subsection (D). Upon recordation or registration in accordance with subsection (C), the lien shall encumber all tangible and intangible property, whether real or personal, and an interest in property, whether legal or equitable, belonging to the obligor. An interest in property acquired by the obligor after the child support lien arises is subject to the lien, subject to the limitations provided in subsections (C) and (D).
(B) When the division determines that child support is unpaid in an amount equal to or greater than one thousand dollars, it shall send written notice to the obligor by first-class mail to the obligor's last known address, as filed with the tribunal pursuant to Section 20-7-854. The notice shall specify the amount unpaid as of the date of the notice or other date certain and the right of the obligor to request an administrative review by filing a written request with the division within thirty days of the date of the notice. If the obligor files a timely written request for an administrative review, the division shall conduct the review within thirty days of receiving the request.
(C) The division shall file notice of a lien with respect to real property with the register of mesne conveyances for any county in the State where the obligor owns property. The social security number of the obligor must be noted on the notice of the lien. The filing operates to perfect a lien when recorded, as to any interest in real property owned by the obligor that is located in the county where the lien is recorded. A special index for liens created under this section must be maintained by the register of mesne conveyances of each county of the State. If the obligor subsequently acquires an interest in real property, the lien is perfected upon the recording of the instrument by which the interest is obtained in the register of mesne conveyances where the notice of the lien was filed within six years prior thereto. A child support lien is perfected as to real property when both the notice thereof and a deed or other instrument in the name of the obligor are on file in the register of mesne conveyances for the county where the obligor owns property without respect to whether the lien or the deed or other instrument was recorded first. The division also shall file notice of a child support lien, with the social security number of the obligor on the notice, with respect to personal property with the Department of Natural Resources, a county, or other office or agency responsible for the filing or recording of liens. The filing of a notice of a lien or of a waiver or release of a lien must be received and registered or recorded without payment of a fee. The division may file notice of a lien or waiver or release of a lien or may transmit information to or receive information from any registry of deeds or other office or agency responsible for the filing or recording of liens by any means, including electronic means. Any lien placed against a vehicle with a title issued by the Division of Motor Vehicles is not perfected until notation of the lien is recorded on the vehicle's title by the Division of Motor Vehicles. No fee is required to reissue this title. The perfected lien is not subordinate to a recorded lien except a lien that has been perfected before the date on which the child support lien was perfected. The division, upon request of the obligor, may subordinate the child support lien to a subsequently perfected mortgage. To assist in the collection of a debt by the division, the division may disclose the name of an obligor against whom a lien has arisen and other identifying information including the existence of the lien and the amount of the outstanding obligation.
(D) The lien expires upon termination of a current child support obligation and payment in full of unpaid child support or upon release of the lien by the division. In any event, a lien under this section expires six years from the date on which the lien was first perfected. The lien may be extended for additional periods of six years each by recording, during the fifth year of the lien, a further notice of the lien, as provided in subsection (C), without affecting the priority of the lien. Expiration of the lien does not terminate the underlying order or judgment of child support. The division may issue a full or partial waiver of a lien imposed under this section. The waiver or release is conclusive evidence that the lien upon the property covered by the waiver or release is extinguished.
(E) If an obligor against whom a lien has arisen and has been perfected under subsection (C) neglects or refuses to pay the sum due after the expiration of the thirty-day notice period specified in subsection (B), the division may collect the unpaid child support and levy upon all property as provided in this section. For the purposes of this section, 'levy' includes the power of distraint and seizure by any means. A person in possession of property upon which a lien having priority under subsection (C) has been perfected, upon demand, shall surrender the property to the division as pursuant to this section. Financial institutions which hold assets of an obligor, after proper identification and notification by the division, shall encumber or surrender deposits, credits, or other personal property held by the institution on behalf of an obligor who is subject to a child support lien, pursuant to Section 43-5-596. Financial institutions are allowed to either submit account information directly to the State where it is matched against the parent data base, or financial institutions may request a file and complete the comparison and submit it directly to the State. The social security number must be used for the matching process and not the full name of the person who maintains an account with that entity. A levy on property held by an organization with respect to a life insurance or endowment contract, without necessity for the surrender of the contract document, constitutes a demand by the division for payment of the amount of the lien and the exercise of the right of the obligor to the advance of the amount. The organization shall pay the amount ninety days after service of the notice of levy. The levy is considered satisfied if the organization pays over to the division the full amount which the obligor could have had advanced to him, if the amount does not exceed the amount of the lien. Whenever any property upon which levy has been made is not sufficient to satisfy the claim of the state for which levy is made, the division thereafter, as often as may be necessary, proceed to levy, without further notice, upon any other property of the obligor subject to levy upon first perfecting its lien as provided in subsection (C), until the amount due from the obligor and the expenses are fully paid. With respect to a seizure or levy of real property or tangible personal property, the sheriff shall proceed in the manner prescribed by Sections 15-39-610, et seq., insofar as these sections are not inconsistent with this section. The division has rights to property remaining after satisfying superior perfected liens, as provided in subsection (C).
(F) Upon demand by the division, a person who fails or refuses to surrender property subject to levy pursuant to this section is liable in his own person and estate to the State in a sum equal to the value of the property not so surrendered but not exceeding the amount of the lien, and the costs at the rate established by Section 23-19-10.
(G) A person in possession of, or obligated with respect to, property who, upon demand by the division, surrenders the property or discharges the obligations to the division or who pays a liability under this section, must be discharged from any obligation or liability to the obligor arising from the surrender or payment. A levy on an organization with respect to a life insurance or endowment contract which is satisfied pursuant to this section, discharges the organization from any obligation or liability to any beneficiary arising from the surrender or payment.
(H) The division shall send timely written notice to the obligor by first-class mail of any action taken to perfect a lien, execute a levy, or seize any property. The notice shall specify the amount due, the steps to be followed to release the property so placed under lien, levied, or seized, and the time period within which to respond to the notice and shall include the name of the court or administrative agency of competent jurisdiction which entered the child support order.
(I) A person aggrieved by a determination of the division pursuant to subsection (B), upon exhaustion of the procedures for administrative review, may seek judicial review in the court where the order or judgment was issued or registered. Commencement of the review shall not stay enforcement of child support. The court may review the proceedings taken by the division pursuant to this section and may correct any mistakes of fact; however, the court may not reduce or retroactively modify child support arrears.
(J) A child support enforcement agency in a jurisdiction outside this State may request the division to enforce a child support order issued by a court or administrative agency in another jurisdiction or a lien arising under the law of another jurisdiction. The order or lien must be accorded full faith and credit and the order or lien must be enforced as if the order was issued or the lien arose in South Carolina, without the necessity of registering the order with the court.
(K) The division is authorized to promulgate rules and regulations, if necessary, to implement the provision of this section."
New hire reporting
SECTION 15. The 1976 Code is amended by adding:
"Section 43-5-598. (A) As used in this section:
(1) 'Business day' means a day on which state offices are open for regular business.
(2) 'Date of hire' means the first day the employee works for which the employee is entitled to compensation from the payor of income.
(3) 'Department' means the Department of Social Services, or its designee.
(4) 'Employer' includes a governmental entity and labor organization and means a person doing business in this State for whom an individual performs a service, of whatever nature, as the employee of the person and except that:
(a) if the person for whom the individual performs services does not have control of the payment of wages for the services, the term 'employer' means the person having control of the payment of wages; and
(b) in the case of a person paying wages on behalf of a nonresident alien, individual, foreign partnership, or foreign corporation, not engaged in trade or business within the United States, the term 'employer' means that person.
(5) 'Labor organization' means an organization in which employees participate and which exists for the purpose, in whole or in part, of dealing with employers concerning grievances, labor disputes, wages, rates of pay, hours of employment, or conditions of work. Hiring halls, which refer individuals for jobs with employers, are 'labor organizations' to the extent that they exist pursuant to an agreement with an employer engaged primarily in the building and construction industry under Section 8(f)(3) of the National Labor Relations Act.
(6) 'New hire' includes an individual newly employed or an individual who has been rehired or has returned to work after being laid off, furloughed, separated, granted leave without pay, or terminated from employment.
(B) By October 1, 1998, the department shall establish a state directory of new hires which shall contain information supplied in accordance with subsection (C) by employers on each new hire.
(C) Beginning October 1, 1998, an employer who hires an employee who resides or works in this State shall report the hiring of the employee to the state directory of new hires within twenty calendar days of the hiring of the employee. However, in the case of an employer transmitting reports magnetically or electronically, these reports must be transmitted semi-monthly, if necessary, not less than twelve nor more than sixteen days apart. The report submitted shall contain:
(1) the employer's name, address, and federal identification number assigned to the employer under Section 6109 of the Internal Revenue Code of 1986; and
(2) the employee's name, address, and social security number.
(D) For purposes of this section, an employer must not report information on an employee of a federal or state agency performing intelligence or counterintelligence functions if the head of the agency has determined that reporting pursuant to this section with respect to the employee could endanger the safety of the employee or compromise an ongoing investigation or intelligence mission.
(E) An employer that has employees who are employed in two or more states and that transmits reports magnetically or electronically may comply with subsection (C) by designating one state in which the employer has employees to which the employer will transmit the report required by subsection (C) and transmitting the report to that state. An employer that transmits reports pursuant to this subsection shall notify the Secretary of the United States Department of Health and Human Services in writing as to which state the employer designates for the purpose of sending reports.
(F) Each report required by subsection (C) must be made on a W-4 form or, at the option of the employer, an equivalent form and may be transmitted by first-class mail, facsimile, magnetically, or electronically. Magnetic and electronic submissions must be in a format prescribed by the department.
(G) If an employer fails to report the hiring of an employee pursuant to this section, the employer is subject to a civil penalty of no more than:
(1) twenty-five dollars for the second offense and every offense thereafter unless the employer can demonstrate good cause for not reporting the hiring; or
(2) five hundred dollars for each and every offense, if the failure is the result of a conspiracy between the employer and the employee not to supply the required report or to supply a false or incomplete report. Fines imposed pursuant to this subsection must be enforced as provided for in Section 20-7-420(43) and distributed according to Section 20-7-856.
(H) Information must be entered into the data base maintained by the state directory of new hires within five business days of receipt from an employer pursuant to subsection (C).
(I) No later than May 1, 1998, the department shall conduct automated comparisons of the social security numbers reported by employers pursuant to subsection (C) and the social security numbers appearing in the records of the State Case Registry created pursuant to Section 43-5-610 for cases being enforced under the federally-approved child support program administered by the department.
(J) When an information comparison conducted under paragraph (I) reveals a match with respect to the social security number of an individual in the records of the State Case Registry, the state directory of new hires shall provide the department with the information reported by the employer pursuant to subsection (C).
(K) Within two business days after the date information regarding a newly hired employee is entered into the state directory of new hires, the department shall transmit a notice to the employer of the employee directing the employer to withhold from the income of the employee an amount equal to the monthly, or other periodic, child support obligation, including any past-due child support obligation, of the employee, unless the employee's income is not subject to withholding pursuant to Section 20-7-1315.
(L) Within three business days after the date information regarding a newly hired employee is entered into the state directory of new hires, the state directory of new hires shall furnish the information to the national directory of new hires.
(M) The state directory of new hires shall include reports received from the Employment Security Commission pursuant to Section 43-5-620. The state directory of new hires shall furnish these reports, on a quarterly basis, to the national directory of new hires by the dates, in the format, and containing the information the Secretary of the United States Department of Health and Human Services specifies in regulations.
(N) Information maintained in the state directory of new hires and national directory of new hires may be utilized for these purposes:
(1) The department shall use information received pursuant to subsection (I) to locate individuals for purposes of establishing paternity and establishing, modifying, and enforcing child support obligations and may disclose this information to a public or private agency that is under contract with the department to carry out these purposes.
(2) The department shall have access to information reported by employers pursuant to subsection (C) for purposes of verifying eligibility for these state administered programs:
(a) Temporary Assistance for Needy Families;
(b) Medicaid under Title XIX of the Social Security Act;
(c) food stamps;
(d) unemployment compensation benefits; and
(e) any state program under a plan approved under Title I, X, XIV, or XVI of the Social Security Act.
(3) The Employment Security Commission shall have access to information reported by employers pursuant to subsection (C) for purposes of administering the employment security program.
(4) The Workers' Compensation Commission or its designee shall have access to information reported by employers pursuant to subsection (C) for purposes of administering the workers' compensation program.
(O) This section remains in effect until the federal mandate requiring a mandatory new hire reporting program is repealed."
Controlling provisions
SECTION 16. Sections 43-1-130, 43-5-510, 43-5-520, 43-5-530, 43-5-540, 43-5-550, 43-5-560, 43-5-570, and 43-5-640 of the 1976 Code are repealed.
Repeals
SECTION 17. Section 20-7-1295 and Section 43-5-598, as added by this act, are the last expressions of the General Assembly notwithstanding any similar provisions passed in any other act of this year. The General Assembly finds these provisions of this act to be controlling and directs the Code Commissioner to codify Sections 20-7-1295 and 43-5-598, as added by this act.
Time effective
SECTION 18. This act takes effect upon approval by the Governor.
Approved the 11th day of June, 1997.