GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1991

H	1 

HOUSE BILL 542*

Short Title:  Child Support Reform.	(Public)
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Sponsors: Representative Barnes.
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Referred to:  Human Resources.
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April 1, 1991

A BILL TO BE ENTITLED
AN ACT TO BEGIN THE PROCESS OF ADOPTING A REFORMED, UNIVERSAL, STATE-ADMINISTERED CHILD SUPPORT SYSTEM IN NORTH CAROLINA.
The General Assembly of North Carolina enacts:
Whereas, the current child support enforcement system in North Carolina is actually the combination of two programs, with one provided through the Department of Human Resources, Division of Social Services and the county departments of social services, and the other provided by the clerks of court; and
Whereas, regardless of which program they access, people needing State child support enforcement receive inequitable program services; and
Whereas, North Carolina's ratio of child support collections per administrative dollar expended is below the national average; and 
Whereas, this organizational fragmentation in the child support enforcement system creates confusion and unnecessary duplication and too often forfeits potential federal reimbursements; and
Whereas, the phasing in of the adoption of a reformed, universal, State-administered approach to delivering child support enforcement services in North Carolina would yield immediate improvement in the provision of essential support to the children of this State as well as a positive cost benefit to State taxpayers; Now, therefore;
The General Assembly of North Carolina enacts:
Section 1.  G.S. 110-128 reads as rewritten:
"§ 110-128. Purposes; phasing in of reformed, universal child support enforcement system.
(a)The purposes of this Article are to provide for the financial support of dependent children; to enforce spousal support when a child support order is being enforced; to provide that public assistance paid to dependent children is a supplement to the support required to be provided by the responsible parent; to provide that the payment of public assistance creates a debt to the State; to provide that the acceptance of public assistance operates as an assignment of  the right to child support; to provide for the location of absent parents; to provide for a determination that a responsible parent is able to support his children; and to provide for enforcement of the responsible parent's obligation to furnish support and to provide for the establishment and administration of a program of child support enforcement in North Carolina.
(b)	Effective October 1, 1991, the General Assembly shall begin the phasing in of a reformed, universal, State-administered child support enforcement system, which will merge most of the child support enforcement system administered by the clerks of court pursuant to Chapter 50 of the General Statutes into the system prescribed by this Article.  The clerk's role in collecting child support payments shall continue and a recipient of a court support order may elect whether to have payments made through the clerk of court or directly to the recipient.  The collection and distribution activities of the clerk of court shall be assumed by a central clearinghouse prescribed by this Chapter that shall serve as a single repository and distribution point for all child support collections.  Part of this phasing in shall also involve the phasing out of the URESA case processing responsibilities of the district attorneys and the establishment within the court system of a quasi-judicial process using hearing officers to adjudicate support matters in controversy.
  The phasing in shall begin, effective October 1, 1991, with six counties designated by the General Assembly in the Expansion Appropriations Act of 1991, and shall be completed for all counties by that date established by the General Assembly in the Expansion Appropriations Act of 1991."
Sec. 2.  Article 9 of Chapter 110 of the General Statutes is amended by adding the following new section to read:
"§ 110-128.1.  Child Support Trust Fund.
There is established in the Department of Human Resources the Child Support Trust Fund.  The Fund shall receive the funds generated from federal reimbursements and other savings resulting from the phasing in of the reformed, universal, State-administered child support enforcement system established pursuant to G.S. 110-128(b)	as well as any funds specifically appropriated to it by the General Assembly.  The Fund shall be used to fund the phasing in of the universal system, to serve as a source of funds to aid counties seeking to operate a local program under a cooperative agreement, or as otherwise provided by the General Assembly.  Funds appropriated to the Fund or otherwise received by it shall not revert to the General Fund."
Sec. 3.  Chapter 120 of the General Statutes is amended by adding a new Article to read:
                          "ARTICLE 12I.
"Joint Legislative Child Support Oversight Commission.
"§ 120-70.85.  Creation and membership of Joint Legislative Child Support Oversight Commission.
The Joint Legislative Child Support Oversight Commission is established.  The Commission consists of 16 members as follows:
(1)	Eight members of the Senate appointed by the President Pro Tempore of the Senate; and
(2)	Eight members of the House of Representatives appointed by the Speaker of the House of Representatives.
Terms on the Commission are for two years and begin on the convening of the General Assembly in each odd-numbered year, except the terms of the initial members, which begin on appointment and end on the day of the convening of the 1993 General Assembly.  Members may complete a term of service on the Committee even if they do not seek reelection or are not reelected to the General Assembly, but resignation or removal from service in the General Assembly constitutes resignation or removal from service on the Committee.
A member continues to serve until his successor is appointed.  A vacancy shall be filled within 30 days by the officer who made the original appointment.
"§ 120-70.86.  Purpose and powers of Commission.
(a)	The Joint Legislative  Child Support Oversight Commission shall examine, on a continuing basis, the child support enforcement system in North Carolina, in order to make ongoing recommendations to the General Assembly on ways to improve the enforcement of child support.
The Commission's oversight study shall include:
(1)	A continuing oversight review of the phasing in of the reformed, universal, State-administered child support system established pursuant to G.S. 110-128(b);
(2)	A continuing fiscal analysis of the cost of implementation of the phasing in, with a report on funding and other legislative recommendations to the 1993 General Assembly;
(3)	 A long-term fiscal analysis of an equitable plan for State/county sharing consistent with the Social Services Plan;
(4)	An exploration of State and local cooperative agreements that would maximize federal reimbursement, particularly in regard to obtaining federal participation in the cost of the following services: (i) sheriff's service of process costs, (ii) district attorney costs, (iii) AOC systems costs, and (iv) AOC blood testing costs, as these costs are affected by the phasing in's transferring of many of the court's roles to DHR; and
(5)	By continuing consultation with all the State and local agencies and individuals involved in child support enforcement both currently and as continuing progress is made towards completing the reformed system prescribed by G.S. 110-128(b), a continuing consideration of the issues that are still causing confusion and inequities even as the phasing in works towards the reformed system aimed at by G.S. 110-128(b), and that develop as the phasing in continues.
(b)	The Commission may make interim reports to the General Assembly on matters for which it may report to a regular session of the General Assembly.  A report to the General Assembly may contain any legislation needed to implement a recommendation of the Committee.
"§ 120-70.87.  Organization of Committee.
(a)	The President Pro Tempore of the Senate and the Speaker of the House of Representatives shall each designate a cochair of the Joint Legislative Child Support Oversight Commission. The Commission shall meet at least once a quarter and may meet at other times upon the joint call of the cochairs.
(b)	A quorum of the Commission is nine members.  No action may be taken except by a majority vote at a meeting at which a quorum is present.  While in the discharge of its official duties, the Commission has the powers of a joint commission under G.S. 120-19 and G.S. 120-19.1 through G.S. 120-19.4.
(c)	Members of the Commission receive subsistence and travel expenses as provided in G.S. 120-3.1.  The Commission may contract for consultants or hire employees in accordance with G.S. 120-32.02.  The Legislative Services Commission, through the Legislative Administrative Officer, shall assign professional staff to assist the Commission in its work.  Upon the direction of the Legislative Services Commission, the Supervisors of Clerks of the Senate and of the House of Representatives shall assign clerical staff to the Commission.  The expenses for clerical employees shall be borne by the Commission."
Sec. 4.  The Department of Human Resources and the Judicial Department shall adopt joint rules to implement this act, including the phasing in of the reformed, universal, State-administered child support enforcement system, and shall make regular reports to the Joint Legislative Child Support Enforcement Commission on rules being developed.
Sec. 5.  This act becomes effective July 1, 1991, provided that the General Assembly appropriates funds for its implementation.