Preproposal statement of inquiry was filed as WSR 97-23-038.

Title of Rule: The Division of Child Support's (DCS) license suspension program, WAC 388-14-510 What is the Division of Child Support's License Suspension Program? WAC 388-14-520 The notice of noncompliance and intent to suspend licenses. WAC 388-14-530 Who is subject to the DCS license suspension program? WAC 388-14-540 How do I avoid having my license suspended for failure to pay child support? WAC 388-14-550 Signing a repayment agreement will avoid certification for noncompliance. WAC 388-14-560 How to obtain a release of certification for noncompliance. WAC 388-14-570 Administrative hearings regarding license suspension are limited in scope.

Purpose: These rules establish the policy and procedure for the DCS license suspension program established by RCW 74.20A.320, whereby DCS will certify a noncustodial parent to the Department of Licensing or other appropriate licensing agency as someone who is not in compliance with a child support order.

Statutory Authority for Adoption: RCW 74.20A.320(10).

Statute Being Implemented: RCW 74.20A.320.

Summary: This issuance sets forth the policy and procedure for the DCS license suspension program, explains the certification process, explains how to avoid being certified for license suspension, and explains how to obtain a release from certification by complying with the support order.

Reasons Supporting Proposal: State legislation.

Name of Agency Personnel Responsible for Drafting, Implementation and Enforcement: Nancy Koptur, Division of Child Support Headquarters, P.O. Box 9162, Olympia, WA 98507-9162, (360) 644-5065.

Name of Proponent: Department of Social and Health Services, governmental.

Rule is not necessitated by federal law, federal or state court decision.

Explanation of Rule, its Purpose, and Anticipated Effects: These rules set forth the policy and procedures for the DCS license suspension program, explains the certification process, explains how to avoid being certified for license suspension, and explains how to obtain a release from certification by complying with the support order.

Proposal does not change existing rules.

No small business economic impact statement has been prepared under chapter 19.85 RCW. This change does not meet the requirements for a small business economic impact statement.

RCW 34.05.328 applies to this rule adoption. This is a significant legislative rule under RCW 34.05.328, but is exempt under RCW 34.05.328 (5)(b)(vii).

Hearing Location: Lacey Government Center (behind Tokyo Bento Restaurant), 1009 College Street S.E., Room 104-B, Lacey, WA 98503, on July 21, 1998, at 10:00 a.m.

Assistance for Persons with Disabilities: Contact Paige Wall by July 12, 1998, phone (360) 902-7540, TTY (360) 902-8324, e-mail pwall@dshs.wa.gov.

Submit Written Comments to: Identify WAC Numbers, Paige Wall, Rules Coordinator, Rules and Policies Assistance Unit, P.O. Box 45850, Olympia, WA 98504-5850, FAX (360) 902-8292, by July 21, 1998.

Date of Intended Adoption: July 28, 1998.

June 8, 1998

Marie Myerchin-Redifer, Manager

Rules and Policies Assistance Unit

NEW SECTION

WAC 388-14-510  What is the division of child support's license suspension program? (1) RCW 74.20A.320 provides that, in some circumstances, the division of child support (DCS) may certify a responsible parent as someone who is not in compliance with a child support order.

(a) "Certify" means to establish that the parent is not in compliance with a child support order and to ask the department of licensing and other state licensing entities to take appropriate action against licenses held by the noncustodial parent.

(b) "Responsible parent" is defined in WAC 388-11-011(22). The responsible parent is also called the "noncustodial parent."

(2) "Noncompliance with a child support order" is defined in RCW 74.20A.020(18) and in WAC 388-14-530(2).

(3) When DCS certifies the noncustodial parent, the department of licensing or other licensing entities take action to deny, suspend, or refuse to renew the noncustodial parent's license, according to the terms of RCW 74.20A.320 (8) and (12).

(4) This section and sections WAC 388-14-520 through 388-14-570 cover the DCS license suspension program.

(5) DCS may certify a noncustodial parent who is not in compliance with a child support order to the department of licensing or any appropriate licensing entity. In determining which licensing entity receives the certification, DCS shall consider:

(a) The number and kind of licenses held by the parent; and

(b) The effect that suspension of a particular license will have in motivating the parent to pay support or to contact DCS to make appropriate arrangements for other relief.

(6) DCS may certify a parent to any licensing agency through which it believes the parent has obtained a license. DCS may certify a parent to as many licensing agencies as DCS feels necessary to accomplish the goals of the license suspension program.

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NEW SECTION

WAC 388-14-520  The notice of noncompliance and intent to suspend licenses. (1) Before certifying a noncustodial parent for noncompliance, the division of child support (DCS) must serve the noncustodial parent with a notice of noncompliance and intent to suspend licenses. This notice tells the noncustodial parent that DCS intends to submit the parent's name to the department of licensing and any other appropriate licensing entity as a licensee who is not in compliance with a child support order.

(2) The notice must be served by certified mail, return receipt requested. If DCS is unable to serve the notice by certified mail, DCS must serve the notice by personal service, as provided in RCW 4.28.080.

(3) The notice must include a copy of the noncustodial parent's child support order and must contain the address and phone number of the DCS office which issued the notice.

(4) The notice must contain the information required by RCW 74.20A.320(2), telling the noncustodial parent that:

(a) The noncustodial parent may request an administrative hearing, but that the hearing is limited in scope (see WAC 388-14-570);

(b) DCS will certify the noncustodial parent unless the parent makes a request for hearing within twenty days of the date of service of the notice;

(c) The noncustodial parent may avoid certification by agreeing to make timely payments of current support and agreeing to a reasonable payment schedule on the support debt;

(d) Certification by DCS will result in suspension or nonrenewal of the parent's license by the licensing entity until DCS issues a release stating that the parent is in compliance with the child support order;

(e) Suspension of a license may affect the noncustodial parent's insurance coverage, depending on the terms of any policy;

(f) Filing a petition to modify the support obligation may stay (or put a hold on) the certification process; and

(g) Even after certification, the parent may obtain a release from certification by complying with the support order.

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NEW SECTION

WAC 388-14-530  Who is subject to the DCS license suspension program? (1) The division of child support (DCS) may certify a person as being in noncompliance with a child support order when:

(a) The person is required to pay child support under a court order or administrative order;

(b) The person is at least six months in arrears; and

(c) The person is not:

(i) In jail or prison, except if the person has other resources available;

(ii) A recipient of temporary assistance for needy families (TANF), Supplemental Security Income (SSI) or other exempt public assistance program; or

(iii) A WorkFirst participant who does not receive a cash grant.

(d) The person is not currently making payments to the Washington state support registry under a wage withholding action issued by DCS.

(2) "Noncompliance with a child support order" for the purposes of the license suspension program means a noncustodial parent has:

(a) Accumulated a support debt, also called an arrearage or arrears, totaling more than six months of child support payments;

(b) Failed to make payments pursuant to a written agreement with DCS towards a support debt in an amount that exceeds six months of payments; or

(c) Failed to make payments required by a superior court order or administrative order towards a support debt in an amount that exceeds six months of payments.

(3) There is no minimum dollar amount for the six months of arrears. The following are examples of when a parent is at least six months in arrears:

(a) The child support order requires monthly payments of five hundred dollars. The noncustodial parent has not made a single payment since the order was entered seven months ago. This noncustodial parent is at least six months in arrears;

(b) The child support order requires monthly payments of one hundred dollars. The noncustodial parent has paid for the last few months, but owes a back debt of over six hundred dollars. This noncustodial parent is at least six months in arrears;

(c) The noncustodial parent owes a support debt according to a superior court judgment, which requires payments of one hundred dollars per month. The noncustodial parent has not made payment for eight months. This noncustodial parent is at least six months in arrears; or

(d) The child support order required monthly payments of two hundred dollars, but the child is over eighteen so no current support is owed. However, the noncustodial parent has a debt of over twelve hundred dollars. This noncustodial parent is at least six months in arrears.

(4) For the purposes of the license suspension program, a noncustodial parent is in compliance with the child support order when the amount owed in arrears is less than six months' worth of support.

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NEW SECTION

WAC 388-14-540  How do I avoid having my license suspended for failure to pay child support? (1) DCS will stay certification action if the noncustodial parent takes the following action within twenty days of service of the notice:

(a) Requests an administrative hearing under WAC 388-14-570; or

(b) Contacts DCS to negotiate a reasonable payment schedule on the arrears and agrees to make timely payments of current support.

(i) The stay for negotiation may last a maximum of thirty calendar days after the parent contacts DCS; and

(ii) If no payment schedule has been agreed to in writing after thirty calendar days have passed, DCS may proceed with certification of noncompliance;

(iii) A reasonable payment schedule is described in WAC 388-14-550, below; and

(iv) The noncustodial parent may request a conference board review under WAC 388-14-385 if the parent feels that DCS has not negotiated in good faith.

(2) If the noncustodial parent files a court or administrative action to modify the child support obligation, the certification action is stayed.

(3) The stay for modification action shall not exceed six months unless DCS finds good cause to extend the stay.

(4) The noncustodial parent must notify DCS that a modification proceeding is pending and must provide a copy of the motion or request for modification to DCS.

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NEW SECTION

WAC 388-14-550  Signing a repayment agreement will avoid certification for noncompliance. (1) If a noncustodial parent signs a repayment agreement, the certification action must be stayed. The noncustodial parent must agree to pay current support in a timely manner and to make regular payments on the support debt.

(2) The repayment agreement must state that If a noncustodial parent fails to make payments under the terms of the agreement, DCS may resume certification action.

(3) In setting the repayment amount, DCS must take into account the financial situation of the noncustodial parent and the needs of all children who rely on the noncustodial parent for support. The noncustodial parent must supply sufficient financial information to allow DCS to analyze and document the parent's financial situation and requirements, including normal living expenses and emergencies.

(4) A reasonable monthly arrears payment is defined as a percentage of the noncustodial parent's "adjusted net income," which is the parent's net monthly income minus any current support obligation. The following table sets forth the suggested monthly payments on arrears:

(5) Examples of how to calculate the arrears payment are as follows:

(6) The noncustodial parent must document any factors which make the parent eligible for an arrears payment less than the amount shown in the table in subsection (4). Such factors include, but are not limited to:

(a) Special needs children, or

(b) Uninsured medical expenses.

(7) The custodial parent and/or DCS must document any factors which make the noncustodial parent eligible for an arrears payment higher than the amount shown in the table in subsection (4). Such factors include, but are not limited to the factors listed in RCW 26.19.075 for deviation from the standard calculation for child support obligations.

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NEW SECTION

WAC 388-14-560  How to obtain a release of certification for noncompliance. (1) After DCS has certified a noncustodial parent to a licensing entity, the noncustodial parent may obtain a release from DCS by taking the following actions:

(a) Paying the support debt in full; or

(b) Signing a repayment agreement under 388-14-550 and paying the first installment due under the agreement.

(2) DCS must provide a copy of the release to any licensing entity to which DCS has certified the noncustodial parent.

(3) The noncustodial parent must comply with any requirements of the licensing entity to get the license reinstated or reissued.

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NEW SECTION

WAC 388-14-570  Administrative hearings regarding license suspension are limited in scope. (1) An administrative hearing on a notice of noncompliance under WAC 388-14-520 is limited to the following issues:

(a) Whether the person named in the child support order is the noncustodial parent;

(b) Whether the noncustodial parent is required to pay child support under a child support order; and

(c) Whether the noncustodial parent is at least six months in arrears.

(2) The administrative law judge (ALJ) is not required to calculate the outstanding support debt beyond determining whether the noncustodial parent is at least six months in arrears. Any debt calculation shall not be binding on the department or the noncustodial parent beyond the determination that there is at least six months' of arrearage.

(3) If the noncustodial parent requests a hearing on the notice, DCS stays the certification process until the hearing results in a finding that the parent is not in compliance with the order, or that DCS is authorized to certify the parent.

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