The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Fiscal Policy
BILL: CS/SB 536
INTRODUCER: Children, Families, and Elder Affairs Committee and Senator Garcia
SUBJECT: Child Support
DATE: April 19, 2023 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Delia Cox CF Fav/CS
2. Blizzard Betta AEG Favorable
3. Delia Yeatman FP Favorable
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/SB 536 makes numerous changes to the Child Support Program, which is administered by
the Department of Revenue (DOR), Florida’s Title IV-D agency. As the state’s Title IV-D
agency, the DOR is responsible for collecting and enforcing child support. To receive services
from the Child Support Program, families either complete an application for services, or are
automatically referred because a parent is receiving cash or food assistance.
The bill makes the following changes to the Child Support Program:
Amends the definition of ‘depository’ to clarify that the depository required by statute is
established by the clerk of the circuit court;
Expands the circumstances when a payment agreement with a deferred start date may be used
to include when an obligor is making a good faith effort to participate in job training;
Removes existing exceptions to the federal prohibition on treating involuntary incarceration
as voluntary unemployment when establishing or modifying a support order;
Authorizes the DOR to commence an administrative proceeding to determine paternity or
paternity and child support based on an affidavit or written declaration completed by a
nonparent caregiver of the child who has knowledge of the child’s paternity;
Requires the clerk of court to credit a depository payment account for collections received by
another state while enforcing the Florida administrative support order associated with the
account;
Resolves inconsistency in statute concerning the amount of the allocation for operations and
maintenance of the Clerk of Court Child Support Collection System (CLERC) system by
BILL: CS/SB 536 Page 2
reorganizing statutes to reflect the current, more efficient practice for collecting, retaining,
distributing, accounting for and reporting clerk fees in private child support cases; and
Requires the clerk of court to credit a depository payment account for collections received by
another state while enforcing the Florida administrative support order associated with the
accounts. The clerk must apply credit in the amount indicated by a record from another
state’s Title IV-D agency or court that is provided to the clerk by the DOR and that
documents collections made or received by the other state.
The bill may have an indeterminate operational impact to DOR, but can be managed within
existing resources.
The bill is effective July 1, 2023, with the exception of section 5 of the bill, which is effective
upon becoming a law.
II. Present Situation:
Refer to Section III. Effect of Proposed Changes for discussion of the relevant portions of current
law.
III. Effect of Proposed Changes:
Depository Service Fees (Sections 3 and 4)
Present Situation
Title IV-D cases
Title IV-D (IV-D) refers to Title IV, Part D of the Social Security Act, which is the federally
funded, state administered child support enforcement program.1 The IV-D program is
administered by the federal Office of Child Support Enforcement (OCSE), within the United
States Department of Health and Human Services. The OCSE oversees the national child support
program and partners with state and local child support agencies to encourage parental
responsibility so that children receive financial, emotional, and medical support from both
parents, even when they live in separate households.2 The OCSE does not provide services
directly to families, but helps state child support agencies develop, manage, and operate their
child support programs effectively and according to federal law.3
As Florida’s IV-D agency,4 the DOR is responsible for collecting and enforcing child support.5
The Child Support Program provides child support services to over one million children and
collects over a billion dollars in child support each year. The Child Support Program works with
parents, employers, financial institutions, the Internal Revenue Service, state and local agencies,
and courts throughout the state to receive timely child support payments and also works with
families and partners to:
1
42 U.S.C. s. 651, et. seq.
2
Id.
3
U.S. Department of Health & Human Services, Office of Child Support Enforcement (OCSE), About the Office of Child
Support Enforcement, (February 2, 2021) available at https://www.acf.hhs.gov/css/about (last visited February 27, 2023).
4
Section 409.2557(1), F.S.
5
See s. 61.13, F.S.
BILL: CS/SB 536 Page 3
Locate parents, employers, and assets;
Establish paternity;
Establish and modify child support orders;
Collect and disburse child support payments; and
Monitor and enforce child support orders.6
Child support services are available even if a parent lives in another state or country.7 The DOR
offers child support services in all but two Florida counties, partnering with the State Attorney’s
Office for services in Miami-Dade County and the Manatee County Clerk of Court for services
in Manatee County.8
Depository Role in IV-D Cases
Once a judge orders child support, the obligor may pay the obligee directly or payments can be
made through an Income Withholding Order. If an Income Withholding Order is issued, the
payments will be processed at the State Disbursement Unit (SDU)9 administered by the DOR.
The clerks of courts act as record keepers for payments processed at the SDU. Obligors must
make all child support payments in IV-D cases to the SDU.10
Each clerk of the circuit court operates a child support depository.11 The DOR extends
participation in the federal child support cost reimbursement program to the central depository12
in each county, to the maximum extent possible under existing federal law.13 The depository
receives reimbursement for services provided under a cooperative agreement with the DOR, and
each depository is required to participate in the SDU.14
Upon request of the parties in a child support case, the court may order that child support
payments be made through the depository or directly to the obligee if it is in the child’s best
interest.15 If such an order is made, any party or the DOR in an IV-D case may file an affidavit
with the depository that alleges the obligor has defaulted on his or her child support payment
obligations and request that the payments be made through the depository.16 The party must
6
The Department of Revenue (DOR), About the Child Support Program, available at
https://floridarevenue.com/childsupport/about_us/Pages/about_us.aspx (last visited February 27, 2023).
7
Id.
8
Id.
9
Section 61.046(20), F.S., provides that the “State Disbursement Unit” means the unit established and operated by the
Title IV-D agency to provide one central address for collection and disbursement of child support payments made in cases
enforced by the DOR pursuant to Title IV-D of the Social Security Act and in cases not being enforced by the DOR in which
the support order was initially issued in this state on or after January 1, 1994, and in which the obligor’s child support
obligation is being paid through income deduction order.
10
Sections 61.1824(1)(a), 61.1824(6), and 409.2559, F.S., and 42 U.S.C. s. 654b(a)(1)(A).
11
Section 61.181(1)(a), F.S.
12
Section 61.046(4), F.S., provides “depository” means the central governmental depository established pursuant to
s. 61.181, F.S., created by special act of the Legislature or other entity established before June 1, 1985, to perform depository
functions and to receive, record, report, disburse, monitor, and otherwise handle alimony and child support payments not
otherwise required to be processed by the State Disbursement Unit.
13
Id.
14
Id.
15
Section 61.13(1)(d), F.S.
16
Section 61.13(1)(d)3., F.S.
BILL: CS/SB 536 Page 4
submit a copy of the affidavit to the court and to all parties.17 Fifteen days after receipt of the
affidavit, the depository must notify all parties that future payments will be paid through the
depository, except income deduction payments must be made through the SDU.18
The DOR must contract with the Florida Association of Court Clerks (FACC) and the clerk
depositories for operation and maintenance of the Clerk of Court Child Support Collection
System (CLERC) System.19 The CLERC System integrates all clerk of court and depositories
and transmits payment data and State Case Registry Data to the DOR’s automated child support
enforcement system.20 When a private case with a support order payable directly to the parent
who is owed support becomes an IV-D case, the depository must create payment accounts on the
CLERC System for payments to be disbursed to the parent owed support and for the payment
data to be sent to the DOR.21
Depository Role in Non-IV-D Cases
Two types of depository fees are levied on non-IV-D child support payments. For payments not
required to be processed through the SDU, depositories must impose and collect a fee on each
payment made for receiving, recording, reporting, disbursing, monitoring, or handling alimony
or child support payments.22
For non-IV-D cases processed by the SDU, the SDU collects a fee for each payment received
and transmits 40 percent of the service charge to the depository in which the case is located for
the depository’s administration, management, and maintenance of such case.23 If a payment is
made to the SDU which is not accompanied by the required fee, the SDU is not permitted to
deduct any moneys from the support payment for payment of the fee.24 The fee must be a flat fee
based, to the extent practicable, upon estimated reasonable costs of operation.25 The fee is then
reduced in any case in which the fixed fee results in a charge to any party of an amount greater
than three percent of the amount of any support payment made in satisfaction of the amount
which the party is obligated to pay, except that no fee is permitted to be less than $1 nor more
than $5 per payment made.26 The fee must be considered by the court in determining the amount
of support that the obligor is, or may be, required to pay.27
The fee for both payment types is four percent of the support payment and may not exceed
$5.25, and part of the fee must be remitted monthly to the DOR for deposit into the Child
Support Enforcement Collection System Trust Fund (Trust Fund).28
17
Id.
18
Id.
19
Section 61.1826(3), F.S.
20
Section 61.046(2), F.S.
21
The DOR, Senate Bill 536 Agency Analysis, p. 3, (March 1, 2023) (on file with the Senate Committee on Children,
Families, and Elder Affairs) (hereinafter cited as “The DOR SB 536 Analysis”).
22
Section 61.181(2)(a), F.S.
23
Id.
24
Id.
25
Id.
26
Id.
27
Id.
28
Section 61.181(2)(b)1., F.S. The Child Support Enforcement Collection System Trust Fund is established pursuant to s.
61.1811, F.S., and is used to deposit the DOR’s share of fees in non-IV-D cases.
BILL: CS/SB 536 Page 5
Under s. 61.181(2)(b)1., F.S., the CLERC allocation is established to be 75 percent of the
additional one percent increase in the fee from three percent to four percent.
Section 61.181(2)(b)2., F.S., provides a different method for determining the CLERC allocation:
For each support payment of less than $33, 18.75 cents;
For each support payment between $33 and $140, an amount equal to 18.75 percent of the
fee charged; and
For each support payment in excess of $140, 18.75 cents.29
According to the DOR, the different methods used to determine the portion of the fee which is
transmitted to the Trust Fund have resulted in the CLERC system utilizing a hybrid calculation.30
Money deposited into the Trust Fund may only be used for the development, implementation and
operation of the CLERC system.31 The DOR's requirement to fund the CLERC System and the
automation of depositories is limited to the state share of funds available in the Trust Fund.32 The
DOR and the FACC contract for data processing services as necessary for the operation of the
child support program and for the purpose of paying the FACC the state share of the trust fund
balances for operation and maintenance of CLERC System.33
Pursuant to the DOR’s current contract with the FACC (Contract CC700) for income
withholding payments in non-IV-D cases, the SDU transmits all payments to the relevant
depository for each case.34 The depository collects the clerk’s statutory fee and retains 40 percent
for the administration, management and maintenance of the case.35
According to the DOR, the current practice for collecting, retaining, distributing, accounting for
and reporting clerk fees in non-IV-D cases on payments received directly by the depository and
by the SDU has been in place for several years, coincides with programming of the CLERC
System, and is reflected in the DOR’s contracts with the FACC for services in support of the
SDU and the depositories.36
Effect of Bill
The bill amends s. 61.181, F.S., making the following changes:
Applies the methodology currently utilized by the CLERC system to determine how the
amount of the fee allocated to the operation and maintenance of the CLERC system is
calculated;
Removes existing references to unused methodologies specified in s. 61.181(2)(b), F.S.;
29
The DOR SB 536 Analysis, p. 3.
30
Id.
31
Id.
32
Id.
33
Id.
34
The DOR SB 532 Analysis, p. 3.
35
Id.
36
Id.
BILL: CS/SB 536 Page 6
Clarifies that the clerk of court maintains its share of the fee for receiving, recording,
reporting, disbursing, monitoring, or handling alimony or child support payments which are
not processed through the SDU;
Provides that for payments processed through the SDU, the clerk of court retains 40 percent
of the fee for the depository’s administration, management, and maintenance of the case for
payments processed through the SDU;
Requires the clerk of court to transmit the balance of the fee to the DOR for handling as
program income after retaining 40 percent of the fee and paying the amount due to the Trust
Fund;
Requires the DOR to transfer funds received from the depository at least monthly through the
Clerk of the Court Revenue Remittance System operated under s. 28.245, F.S.;37
Provides that depository fees are payable on payments in all non-IV-D cases, not just those
that are not required to be processed through the SDU;
Prohibits depository fees from being imposed on payments on IV-D cases;
Removes the existing requirement for the SDU to collect and remit fees to the depository on
non-IV-D payments;
Removes the existing requirement for the depository to provide the DOR with a monthly
report of IV-D payment accounts;
Removes a provision which specifies that the depository is not required to provide the IV-D
agency with the date provided by a payor of income as required by s. 61.1301, F.S., if the fee
increases, expires, or otherwise terminates. As a result, the depository must now provide the
DOR with the date provided by a payor;
Deletes obsolete language relating to prior dates;
Changes the meaning of “depository” as defined in s. 61.046(4), F.S., to remove references to
past dates and obsolete references;
Clarifies that the depository is established by the clerk of the circuit court;
Reorganizes cu