1. Executive Summary:
Ohio Senate Bill 67 proposes amendments to sections 5107.05, 5107.10, and 5107.20 of the Ohio Revised Code, specifically concerning the pass-through of child and spousal support payments to participants in the Ohio Works First (OWF) program. The bill mandates that a specific amount of collected support payments be directly paid to OWF assistance groups and that this passed-through amount be disregarded when determining both initial and ongoing eligibility and the amount of cash assistance received. This aims to increase the financial resources available to OWF families receiving support and simplify the calculation of benefits.
2. Main Themes and Key Provisions:
- Mandatory Pass-Through of Support Payments: The central theme of SB 67 is to mandate the direct payment (pass-through) of a portion of collected support payments to OWF recipient families. Currently, support payments collected on behalf of OWF participants generally go to the state to offset the cost of assistance.
- The bill specifies the amounts to be passed through:
- $100 per month if the assistance group includes one minor child.
- $200 per month if the assistance group includes two or more minor children.
- Section 5107.20 (D)(1) outlines this provision:
- “(1) The following portion of the amount of support collected on behalf of an assistance group during a month shall be paid to the assistance group: (a) If the assistance group includes one minor child, one hundred dollars; (b) If the assistance group includes two or more minor children, two hundred dollars.”
- Disregard of Passed-Through Support for Eligibility and Benefit Calculation: A crucial aspect of the bill is the requirement to disregard the passed-through support payments when determining both initial and continuing eligibility for OWF and the amount of cash assistance the group receives.
- Section 5107.20 (E) states:
- “(E) The amount of support paid to an assistance group pursuant to division (D)(1) of this section shall be disregarded and not included as countable income when both of the following are determined: (1) The amount of cash assistance the assistance group is to receive under Ohio works first; (2) Whether the assistance group is initially eligible to participate in Ohio works first and continues to be eligible to participate.”
- Amendment of Rules Governing OWF: The bill necessitates amendments to the rules adopted by the Director of Job and Family Services under section 5107.05 of the Revised Code. These amendments must reflect the mandatory pass-through and the associated income disregard.
- Section 1 modifies section 5107.05 (A)(9) to include:
- “(9) Requirements for the collection and distribution of support payments owed participants of Ohio works first pursuant to section 5107.20 of the Revised Code;”
- It also amends section 5107.05 (B) to ensure consistency with the new section 5107.20:
- “(B) The rules adopted under division (A)(2) of this section shall be consistent with section 5107.20 of the Revised Code. … The rules shall be consistent with section 5107.20 of the Revised Code.”
- Impact on Income Eligibility Criteria: The amendment to section 5107.10 (D)(3) explicitly includes an exception for the pass-through of support payments when determining continued eligibility based on countable income.
- The original text stated: “No amounts shall be disregarded from the assistance group’s gross unearned income.”
- The amended text now reads: “Except as provided in section 5107.20 of the Revised Code, no amounts shall be disregarded from the assistance group’s gross unearned income.” This acknowledges that the passed-through support, while unearned income, will be disregarded as per the new section 5107.20(E).
- Delayed Effective Date: The bill specifies a delayed effective date for these changes.
- Section 3 states:
- “Sections 1 and 2 of this act take effect eighteen months after the effective date of this section.” This suggests a significant lead time for the Department of Job and Family Services to implement the necessary rule changes and system modifications.
- Technical Amendments: The bill also includes standard language for amending and repealing existing sections of the Revised Code.
3. Important Ideas and Facts:
- Policy Shift: This bill represents a significant policy shift in how Ohio treats child and spousal support payments received by families participating in the Ohio Works First program. The current system primarily uses these payments to reimburse the state for assistance provided.
- Potential Benefits for Families: The mandatory pass-through could directly benefit low-income families receiving support by increasing their monthly income. The disregarded amount would not negatively impact their OWF eligibility or reduce their cash assistance.
- Administrative Implications: The Ohio Department of Job and Family Services and county departments will need to revise their rules, update their systems for collecting and distributing support payments, and adjust their eligibility and benefit calculation processes. The eighteen-month delay suggests the complexity of these changes.
- Fiscal Impact: The bill will likely have a fiscal impact on the state, as a portion of the support payments that previously offset OWF costs will now be directly provided to families. The magnitude of this impact will depend on the number of OWF families receiving support and the average amount of support collected.
- Alignment with Federal Regulations: The existing law requires rules to be consistent with Title IV-A and Title IV-D of the Social Security Act. The amendments proposed in SB 67 will likely need to be reviewed to ensure continued federal compliance, particularly regarding the treatment of child support in TANF programs.
4. Quotes from the Original Source:
- (Regarding the purpose of the bill): The title of the bill clearly states its intent: “To amend sections 5107.05, 5107.10, and 5107.20 of the Revised Code regarding the pass-through of support payments under the Ohio Works First program.”
- (Regarding the amount of pass-through): See quote in Section 2, Bullet Point 1, directly from Section 5107.20 (D)(1).
- (Regarding the income disregard): See quote in Section 2, Bullet Point 2, directly from Section 5107.20 (E).
- (Regarding the rule-making authority): “The director of job and family services shall adopt rules to implement this chapter. The rules shall be consistent with Title IV-A, Title IV-D, federal regulations, state law, the Title IV-A state plan submitted to the United States secretary of health and human services under section 5101.80 of the Revised Code, amendments to the plan, and waivers granted by the United States secretary.” (Section 5107.05)
5. Conclusion:
Senate Bill 67 proposes a significant change to the Ohio Works First program by mandating the pass-through of a specified amount of child and spousal support payments directly to recipient families and requiring that this amount be disregarded for eligibility and benefit calculation purposes. This initiative aims to provide additional financial support to low-income families receiving support and could simplify administrative processes. However, it will necessitate substantial rule changes and system updates by the Ohio Department of Job and Family Services and will likely have fiscal implications for the state. The delayed effective date suggests the need for careful planning and implementation. Further analysis of the potential benefits, costs, and administrative challenges will be crucial as the bill progresses through the legislative process.