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Monday, March 14, 2011

 
NEW SOUTH CAROLINA DSS DIRECTOR UNDERSTANDS FEDERAL "NEW HIRE" REPORTING LAWS

Click here to read "New Hire Reporting Information for Hawaii." Or click all of the following links:
Hawaii Employers Guide to Medical Support
Hawaii Employer's Guide - Income Withholding(FEN125)
State Directory of New Hires Q & A (FLO100)
New Hire File Format
Click here to access South Carolina's Employer New Hire Reporting website and click here to read "Child Support Enforcement New Hire Reporting Facts."

Careful readers of the documents posted at the various cited links would probably receive the impression that South Carolina's New Hire Reporting laws are very similar to those of Hawaii. However, there are some critical differences. For example, despite the information contained on its DSS website, South Carolina's statutory scheme, unlike that of Hawaii, does not mandate new hire reporting as required by federal law. Therefore, no penalties are imposed--nor can they be imposed--against those employers who choose not to report new hires in South Carolina.

Recently appointed South Carolina DSS Director Lillian Koller formerly held the equivalent position in Hawaii. Moreover, she is an attorney. Therefore, she both understands the requirements of the federally-mandated New Hire Reporting Program and can help South Carolina develop a statutory scheme which is both effective and complies with federal law.

Now, if the South Carolina General Assembly will only listen to her.

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Saturday, March 12, 2011

 
STATUS OF SC COMPUTERIZED CHILD SUPPORT ENFORCEMENT SYSTEM

According to the January 13, 2011 DSS Presentation to the Full Ways and Means Committee, this system is scheduled to come on-line in September of 2012; note numbered page 10 of this document. That means that South Carolina is likely to be fined another $10,000,000 before the system is finally installed. That should bring total fines to over $102,000,000.

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Friday, March 11, 2011

 
SC DEPARTMENT OF SOCIAL SERVICES LOCATES MISSING $17 MILLION

According to South Carolina Department of Social Service Presentation to the Full Ways and Means Committee, the South Carolina Department of Social Services had a budget deficit of $28 Million as of January 13, 2011. Approximately $10 Million of the deficit is apparently a portion of a recurring federal fine imposed against South Carolina related to the State's failure to install a federally-mandated child support tracking and collection system. According to SC agency: retirement was key in $28 Million deficit, "about $17 Million of the agency's deficit disappeared when it changed how it calculated how much money it needed to cover its programs and froze hiring."

Before what amounts to an accounting error was discovered, DSS advised the Full Ways and Means Committee that the federal government was to blame for its deficit woes. However, the federal fines that were imposed for South Carolina's failure to comply with the federal mandate to install a computerized child support tracking and collection system are of DSS's own doing. And the problems with uncollected child support are the fault of CSED Director Larry McKeown. Additionally, Mr. McKeown has failed to institute measures to reduce the child support arrearages that have been successfully implemented in other States. And as a result of the ineffective manner in which Mr. McKeown has run his department, South Carolina has not only been fined over $90 Million, but has missed out on federal performance grants.

On the bright side, frightening as the "misplacement" of $17 Million is, South Carolina's new DSS Director appears to be on the ball. We would say she has already earned a raise and that if "the past is prologue" the 70,000 missing South Carolina Deadbeat parents should come out of hiding now and try to work out a payment plan before it is too late.

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Tuesday, December 28, 2010

 
OKLAHOMA DOING POOR JOB--SOUTH CAROLINA DOING WORSE JOB

According to the most recent data available from the Office of Child Support Enforcement of the United States Department of Health and Human Services, Oklahoma has 139,413 child support cases with arrears due and 89,500 cases paying towards arrears. According to the same data, South Carolina has 139,894 cases with arrears due and 77,130 cases paying towards arrears. Click Table 6: CASES WITH ARREARS DUE AND CASES PAYING TOWARDS ARREARS, FY 2008 to review the complete table.

Although there are some states that are doing a worse job than Oklahoma is doing, we picked Oklahoma because of its similarity with South Carolina in terms of the total number of child support cases with arrears due. However, readers will note that while South Carolina has only 581 more child support cases with arrears due than Oklahoma, South Carolina has 12,370 more cases that are not paying towards arrears than does Oklahoma. The total number of child support cases with arrears due in which no payments are being made towards the arrears in South Carolina is 62,764, which works out to a non-payment rate of 45%. The total number of child support cases with arrears due in which no payments are being made towards the arrears in Oklahoma is 49,913, which works out to a non-payment rate of 36%.

Because South Carolina is doing such a poor job of collecting child support arrearages, U. S. taxpayers are having to help support 62,764 South Carolina households containing hundreds of thousands of children that do not belong to them. And at last count, South Carolina was receiving approximately $40,000,000 in Temporary Aid to Needy Families on an annual basis.

Something is not right with this picture.

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NEW HIRE REPORTING & JIM HODGES, ET. AL. V. TOMMY G. THOMPSON, ET. AL.

Note the following from http://pacer.ca4.uscourts.gov/opinion.pdf/002512.P.pdf:

The district court opinion contains a comprehensive history, the details of which need not be repeated here, of the federal government’s longstanding involvement in child support enforcement programs and related federal efforts to work with the States to solve the serious problem of nonpayment of child support. See Hodges v. Shalala, 121 F.Supp.2d 854 (D.S.C. 2000). Currently, as a condition of receipt of any federal funding under Title IV-D of the Social Security Act, 42 U.S.C. §§ 651-669, States must have an approved state plan for child and spousal support that meets all the requirements of 42 U.S.C. § 654. Among the prerequisites for approval of a Title IV-D Plan are the requirements that the State establish and operate an automated data processing and information retrieval system, see 42 U.S.C. § 654(24), and a state child support disbursement unit (SDU), see 42 U.S.C. § 654(27)(A). South Carolina concedes that it has neither a federally certifiable statewide automated system for child support nor an SDU. See Hodges, 121 F. Supp. 2d at 86 (emphasis added).

Without an approved state plan, a State may lose federal funding under both Title IV-D (child support enforcement) and Title IV-A (TANF). See 42 U.S.C. § 655(a)(1)(A); 42 U.S.C. § 602(a)(2). Alternatively, a State may opt for an alternative penalty in lieu of disapproval of their state plan and the withholding of federal funds if the State is making a good faith effort to comply with the program’s requirements and the State has submitted a corrective compliance plan. See 42 U.S.C. § 655(a)(4). South Carolina has elected to incur the alternative penalty.

South Carolina needs to get a New Hire Reporting Statute in place just as the other forty-nine states have done. Doing so would help South Carolina locate the 70,000 parents who are not paying their court-ordered child support; it would also help get some of the custodial parents off of welfare and their children off of Medicaid. Additionally, not only is it unconscionable that South Carolina has enabled non-custodial parents to steal over $1.2 Billion from their children, but like the computerized child support tracking and collection system, a state new hire reporting system and registry is required by 42 U.S.C. § 655.

Those who do not believe us on this last point should ask South Carolina State Senator Mike Rose and/or the attorney for the South Carolina Senate Judiciary Committee if we are correct. Or better yet, ask Vicki Turetsky, Commissioner for the Office of Child Support Enforcement in the Department of Health and Human Services whether we are correct. Both of them have law degrees from very prestigious institutions.

Of course, Ms. Turetsky and Senator Rose may not be any more concerned about the fact that the South Carolina General Assembly and the CSED of the Department of Social Services are doing so little to collect the $2 Billion+ that is owed to non-custodial parents in South Carolina than is South Carolina DSS Director Dr. Kathleen Hayes. Both of them have known about this problem for over eight months and Dr. Hayes has been aware of the problem for even longer. Yet all of them have done nothing to address the problem.

In her defense, Ms. Turetsky is an equal opportunity neglector of child support recipients--nationwide over $100 Billion is owed in child support arrears, but despite the availability of Draconian laws to enforce compliance with Support Orders, the arrears are increasing rather than decreasing.

Hopefully, the New Year will be better for everyone and those in a position to do so will actually do something to help the families who are going without support rather than just paying lip service to the problem.

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Tuesday, December 21, 2010

 
SOUTH CAROLINA DSS FINES MOUNT


Will Folks writes in "DSS Fines Mount," “Such is the game of unfunded federal mandates,” thereby implying that South Carolina is being victimized by the federal government’s decision to fine the state for its failure to comply with an unfunded mandate. In our view, that implication is absurd.

The federal mandate to implement a computerized child support tracking and collection system is not exactly unfunded. DSS records show that South Carolina has received $79,901,279 to date for implementation of the system. Moreover, had the system been implemented and the child support collections rate increased, South Carolina would have been eligible for incentive bonuses. This is in addition to the approximately $80,000,000 in yearly federal Title IV-D (child support enforcement) and Title IV-A Temporary Assistance to Needy Families (TANF) funding that South Carolina receives and which is currently at risk. (Click here for an explanation of how much South Carolina receives in Title IV-D and TANF funding on an annual basis and why that funding is at risk.)

Rather than complaining about the big bad federal government, maybe the South Carolina General Assembly should make some bona fide attempts to actually understand federal law and to enact mandated legislation. And, rather than “rearranging deckchairs on the Titanic,” maybe Governor Nikki Haley should appoint a DSS Director who is not only committed to reform, but who actually understands how to implement mandated reform. And maybe that person should give some serious thought on how to avoid losing $80,000,000 a year in federal funding.

Incidentally, our disagreement with Mr. Folks should in one way be construed as a personal attack against him. We sometimes link to his site and often read the postings to his site. We even sometimes agree with his positions. For example, we agree that DSS is severely mismanaged. We just don't agree that the mandates contained in the 1996 Welfare Reform Act are either unreasonable or unfunded. Essentially, the federal government said to South Carolina, "We are tired of sending so much AFDC money to you each month, so we are going to provide you with a way to make South Carolina fathers pay to support their own children. Additionally, we will fund child support collection costs as well as most of the costs of a computerized tracking and collection system. The catch is that you have to both implement the computerized program and pay for part of the costs. And if you don't implement the program we will start taking our money back and may even stop sending money to you."

We have no idea why these systems cost so much money. Nor do we have any idea of how much they cost to run on an annual basis, though other states can probably provide that information. We do know, however, that the federal government has given South Carolina about $80 Million to build the system and that the federal government sends South Carolina about $40 Million each year to pay for collection of child support; this is on top of the unmonitored "fines" the various family courts access against "deadbeat dads" for child support collection as well as the interest generated on both child support payments and the collected, but undistributed, child support payments paid through the Family Court. We also know that South Carolina's arrearages are increasing, whereas other states who have instituted federally-mandated programs have seen an increase in collections and a decrease in arrearages.

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Friday, September 10, 2010

 
S.C. FINE: $82,858,661 AND COUNTING

According to the South Carolina Department of Social Services Response to Budget Proviso 26.20, dated August 31, 2010, South Carolina has been fined $82,858,661 to date by the federal government for failure to install the computerized child support tracking and collection system mandated by the 1996 Welfare Reform Act.

Sad to say, South Carolina is the only state that is not yet in compliance with this fourteen year old law. Moreover, because South Carolina's system is not scheduled to come on-line until September of 2011, it is anticipated that South Carolina will be fined at least another $10,000,000.

Given that the 1996 Welfare Reform Act was designed to decrease the number of welfare recipients and South Carolina is big on personal responsibility, it is difficult to understand why so little attention has been paid to addressing this problem. Surely this is intentional and not just the result of either laziness or incompetence on the part of either State employees or political appointees.

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Monday, July 12, 2010

 
FURTHER THOUGHTS ON THE FAILURE OF S. 1257 TO PASS

Obviously, we are convinced that South Carolina’s failure to enact legislation mandating New Hire Reporting puts the State at risk of losing federal funding (see, "SOUTH CAROLINA'S FAILURE TO PASS SENATE BILL 1257--WHY IT MATTERS"). Still, those who care about this topic may want to obtain Senator Michael Rose's views on why he proposed S. 1257, why S. 1257 was amended in Committee, why it failed to pass the South Carolina Senate, and what he thinks the possible ramifications of the Senate's actions could be. As we noted in "THIRD READING OF SOUTH CAROLINA SENATE BILL 1257 FAILS," we are baffled by the Senate's actions. One would think that the South Carolina General Assembly learned its lesson in Jim Hodges, et. al. v. Tommy G. Thompson et. al.

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Thursday, June 24, 2010

 
SOUTH CAROLINA'S FAILURE TO PASS SENATE BILL 1257--WHY IT MATTERS

As a starting point, those who are interested in this issue should review the South Carolina New Hire Reporting Form and The Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA). However, the long and the short of this issue is that The Personal Responsibility and Work Opportunity Reconciliation Act mandates that all states which receive certain federal funds both set up a New Hire Reporting Registry and require that all employers—with limited exceptions--report new hires to the state Child Support Enforcement agency. South Carolina has created the requisite forms, but apparently remains the only state that does not require mandatory reporting of new hires.

State Senator Rose’s Bill was apparently an attempt to correct this problem so that South Carolina could continue to receive federal funding. Unfortunately, the Bill's defeat in the South Carolina Senate places South Carolina at risk of losing approximately $80,000,000 in yearly federal funding.

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Monday, June 21, 2010

 
THIRD READING OF SOUTH CAROLINA SENATE BILL 1257 FAILS

We not know whether any of our readers are aware of the failed status of S. 1257 or whether they care that this Bill failed to [pass. However, this legislation amended prior South Carolina statutes to conform to federal law; presumably the amendments were intended to increase child support collections in the State, reduce the child support arrearages, reduce the Welfare rolls, and help avoid more federal sanctions for continued failure to comply with the 1996 Welfare Reform Act.

Frankly, we are baffled by the actions of a group that purports to be for family values and ending welfare--think Senators Grooms and Knotts for example--but that will not take steps to require that South Carolina non-custodial parents support their children. Moreover, because Governor Sanford has received severe criticism for the Mess at DSS, it comes as a surprise to us that many of his allies—including Senators Davis, Ryberg, and Campsen--voted against this Bill. Readers can see below which Senators voted for and against it. They would have to ask those who did so why they voted "Nay." We can only assume that those nay saying senators do not understand Senator Rose’s Bill. Or they want to prolong employment of illegal aliens for awhile. Or they want South Carolina to have to keep paying fines to the Feds. Or they do not understand federal law.
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THIRD READING FAILS

S. 1257 (Word version)--Senator Rose: A BILL TO AMEND CHAPTER 5, TITLE 43 OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE STATE DIRECTORY OF NEW HIRES AND NEW HIRE REPORTING PROGRAM TO REPEAL SECTION 43-5-598; TO AMEND SECTION 63-17-1210, RELATING TO THE STATE DIRECTORY OF NEW HIRES AND THE NEW HIRE REPORTING PROGRAM, TO REQUIRE THAT BY JULY 1, 2010, THE CHILD SUPPORT ENFORCEMENT DIVISION OF THE DEPARTMENT OF SOCIAL SERVICES CREATE AN EMPLOYER NEW HIRE REPORTING PROGRAM AND A STATE DIRECTORY OF NEW HIRES.
(Abbreviated Title)

The Senate proceeded to a consideration of the Bill, the question being the third reading of the Bill.

The "ayes" and "nays" were demanded and taken, resulting as follows:

Ayes 8; Nays 30

AYES

Anderson
Campbell
Elliott
Fair
Hayes
Martin, Larry
Massey
Rose

Total--8

NAYS

Alexander
Bright
Bryant
Campsen
Cleary
Coleman
Cromer
Davis
Grooms
Hutto
Knotts
Land
Leatherman
Malloy
McConnell
McGill
Mulvaney
Nicholson
O'Dell
Peeler
Pinckney
Rankin
Reese
Ryberg
Scott
Setzler
Shoopman
Thomas
Verdin
Williams

Total—30

Having failed to receive the necessary vote, third reading of the Bill failed.

Expression of Personal Interest

Senator ROSE rose for an Expression of Personal Interest.

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Saturday, May 15, 2010

 
THE SOUTH CAROLINA IMMIGRATION REFORM ACT AND NEW HIRE REPORTING

According to "Illegals to face added scrutiny”:

The state is about to step up its efforts to purge South Carolina's workforce of illegal immigrants by scouring the files of small businesses for evidence of undocumented workers.

On July 1, state officials will begin auditing 110,000 companies with fewer than 100 employees to make sure they are complying with South Carolina's Illegal Immigration Reform Act, which lawmakers passed in 2008 to weed illegal aliens from the workplace.
Our guess is that a statewide New Hire Reporting Form Audit would reveal that many of the cited companies have not been filing the federally-mandated New Hire Reporting Forms either.

Again, if the State of South Carolina enforced the New Hire Reporting Laws, employers would be less likely to hire workers who could not provide proper documentation--not to mention that South Carolina would increase its child support collection rates.

To search for companies in South Carolina that have been cited for violating the State’s Illegal Immigration Reform Act click here. We think readers will be surprised to learn the names of some of the violators. But, we think they would be more surprised to learn the number of South Carolina employers who have never filed a New Hire Reporting Form and how little the State is doing to enforce compliance with the New Hire Reporting Laws.

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Friday, April 16, 2010

 
UNDERSTANDING THE CUMULATIVE NATIONAL CHILD SUPPORT DEBT

According to "Understanding the Child Support Debt":

Despite record collections by State CSE programs, considerable sums of child support go unpaid every year. As of September 30, 2006, States reported that the total national unpaid child support debt that has accumulated since the program began in 1975 is $105 billion. This large accumulation of child support arrears is a serious concern for a number of reasons. First, if these arrears could be collected, the additional income would clearly benefit the children and families who are owed this child support. Second, some of these arrears are owed to the government. Finally, large arrears balances give the impression that State CSE programs are not doing their job, when, in fact, the situation is much more complicated (emphasis added).
South Carolina has been fined over $80,000,000 essentially for its failure to install federally-mandated child support enforcement programs on the State level. Therefore, we think it is safe to say that, in this case, appearance mirrors reality and the folks at the South Carolina CSE "are not doing their job."

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Friday, April 09, 2010

 
MAJOR FEDERAL FUNDING AT RISK IN SOUTH CAROLINA

As we noted previously, according to Jim Hodges, et. al. v. Tommy G. Thompson et. al.:
[States that fail to install computerized child support collection and tracking systems] may lose federal funding under both Title IV-D (child support enforcement) and Title IV- (TANF). See 42 U.S.C. § 655(a)(1)(A); 42 U.S.C. § 602(a)(2). Alternatively, a State may opt for an alternative penalty in lieu of disapproval of their state plan and the withholding of federal funds if the State is making a good faith effort to comply with the program’s requirements and the State has submitted a corrective compliance plan. See 42 U.S.C. § 655(a)(4). South Carolina has elected to incur the alternative penalty.
To date, South Carolina has "opted" to be penalized approximately $82,000,000 in "alternative penalties" for its failure to install the mandated computerized child support tracking and collection system. The State has argued that it is making a "good faith effort" to comply with federal law and that, therefore, Title IV-D (child support enforcement) and Title IV-A (Temporary Assistance to Needy Families) funding should not be with-held.

Assuming, arguendo, that anyone at South Carolina DSS can argue with a straight face that South Carolina is making a good faith effort* to comply with federal law, we wondered why South Carolina would elect to be fined $82,000,000 in lieu of loosing Title IV-D and Title IV-A funding. So we asked Vicki Turetsky, Commissioner for Child Support Enforcement in the U.S. Department of Health and Human Services Administration for Children and Families, "What is the total yearly combined Title IV-D (child support enforcement) and Title IV-A (TANF) funding received by South Carolina?" A few days later we received an e-mail from Rob Cohen of the ACF:
Commissioner Turetsky referred your email to me for response.

The latest Title IV-D expenditure information available can be found in our FY 2006 Report to Congress at [this link]. Please see table 38. We are in the process of posting the ’07 Report – it should be on our website next week.

The latest Title IV-A information available can be found in the Office of Family Assistance’s FY 2008 TANF Financial Data page at [this link]. Please see table A.
Mr. Cohen did not directly answer our question. However, the charts he referenced indicate that the total yearly combined Title IV-D and Title IV-A funding received by South Carolina is approximately $77,115,727. We derived this figure by combining the most recent South Carolina figures on Table A (COMBINED FEDERAL FUNDS SPENT IN FY 2008 SUMMARY OF EXPENDITURES ON ASSISTANCE IN FY 2008) with the most recent South Carolina figures on Table 38 (Total Administrative Expenditures for Five Consecutive Fiscal Years). $36,834,443 + $40,281,284 = $77,115,727.

Again, as long as South Carolina has not installed the federally mandated computerized child support tracking and collection system, it risks having all Title IV-D and TANF funding terminated. So South Carolina needs to get cracking before someone in Commissioner Turetsky's office with a law degree considers the question of whether South Carolina is actually making good faith efforts to comply with the mandates of the PRWORA.

*See, Black’s Law Dictionary 701 (7th ed. 1999), defining good faith as, “A state of mind consisting in (1) honesty in belief or purpose, (2) faithfulness to one’s duty or obligation, (3) observance of reasonable commercial standards of fair dealing in a given trade or business, or (4) absence of intent to defraud or to seek unconscionable advantage.”

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Tuesday, March 30, 2010

 
MORE ON COUNTING BLESSINGS AND THE MESS AT SOUTH CAROLINA DSS

In our opinion, many of those in charge at DSS are as incompetent as those in charge at the South Carolina Employment Security Commission. Bless her heart, but Dr. Hayes neither has a clue about how to decrease the child support arrearages in South Carolina nor is equipped to run an agency whose primary failures are related to an inability to understand federal law and implement programs mandated by federal law. Therefore, as we noted, SOUTH CAROLINA SHOULD COUNT ITS BLESSINGS. It could certainly be much worse, and in fact, will be a lot worse before the computer system goes on-line. Not only is South Carolina scheduled to be fined another $10 Million this year, but will be fined at least another $1 Million in 2011.

The real shame of this situation is that, not only is South Carolina being fined for failure to implement federally mandated programs, but that because of its failure to take easy, inexpensive steps to increase its rate of child support collections, South Carolina is missing out on huge federal incentives. Moreover, instead of actually doing something to correct the problems, the State is throwing fathers in jail willy-nilly for allegedly being in Contempt without regard to whether they are actually in contempt and without regard to whether doing so generates more money than it costs the State to house, feed, guard, and prosecute them. (Quick, tell us, who benefits from the incarceration of "deadbeats," how many fathers are currently incarcerated in South Carolina jails for failure to pay child support and what it is costing the State to house, feed, guard, and prosecute them. Now tell us how much money is generated in fees and fines and who gets those fees and fines.)

We can tell you who gets the fees and fines when DSS is involved. You find out the answer to the other questions and you will know why South Carolina has neither implemented the New Hire Reporting Program mandated by Congress nor installed the mandated computer system. Punishing “deadbeats” is a profitable business and the county clerks and sheriffs want to maintain control over who receives the fines and penalties and what can be done with them.

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Sunday, March 28, 2010

 
SOUTH CAROLINA SHOULD COUNT ITS BLESSINGS

According to the article “System to track S.C. deadbeats,” "Federal officials said in an e-mail South Carolina is working closely with them in monitoring the system's progress, including quarterly visits and bimonthly teleconferences. But the federal agency contends the penalties are set by law and only Congress can undo them (emphasis added)." This is news to some people, but not to the South Carolina General Assembly and South Carolina DSS. As stated eight (8) years ago in Jim Hodges, et. al. v. Tommy G. Thompson et. al.:
The district court opinion contains a comprehensive history, the details of which need not be repeated here, of the federal government’s longstanding involvement in child support enforcement programs and related federal efforts to work with the States to solve the serious problem of nonpayment of child support. See Hodges v. Shalala, 121 F.Supp.2d 854 (D.S.C. 2000). Currently, as a condition of receipt of any federal funding under Title IV-D of the Social Security Act, 42 U.S.C. §§ 651-669, States must have an approved state plan for child and spousal support that meets all the requirements of 42 U.S.C. § 654. Among the prerequisites for approval of a Title IV-D Plan are the requirements that the State establish and operate an automated data processing and information retrieval system, see 42 U.S.C. § 654(24), and a state child support disbursement unit (SDU), see 42 U.S.C. § 654(27)(A). South Carolina concedes that it has neither a federally certifiable statewide automated system for child support nor an SDU. See Hodges, 121 F. Supp. 2d at 86 (emphasis added).

Without an approved state plan, a State may lose federal funding under both Title IV-D (child support enforcement) and Title IV-A (TANF). See 42 U.S.C. § 655(a)(1)(A); 42 U.S.C. § 602(a)(2). Alternatively, a State may opt for an alternative penalty in lieu of disapproval of their state plan and the withholding of federal funds if the State is making a good faith effort to comply with the program’s requirements and the State has submitted a corrective compliance plan. See 42 U.S.C. § 655(a)(4). South Carolina has elected to incur the alternative penalty.
This Order makes clear that South Carolina is lucky to have avoided loosing both Title IV-D (child support enforcement) and Title IV-A (TANF) funding. Certainly, as Dr. Hayes indicates, "money, if not forfeited, could be deployed to help some 250,000 single parents in South Carolina seeking child support through her agency." So the State should count its blessings, get to work solving this problem, and cease playing the victim.

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Saturday, March 27, 2010

 
NEW SOUTH CAROLINA COMPUTER SYSTEM TO TRACK "DEADBEATS"

We direct your attention to the article “System to track S.C. deadbeats.” The article contains some inaccuracies and The Post and Courier has assigned a title that is both provocative and inaccurate. Still, this is an important piece and ought to send a wake-up call to the South Carolina General Assembly regarding the underfunding of DSS, the sheer incompetence of Larry McKeown and other well-paid employees of the South Carolina CSED, and the need for South Carolina to begin to comply with federal law.

For the readers' information--and in fairness to Dr. Hayes--the computerized child support tracking and collection system referenced in the article was mandated by the Personal Responsibility and Work Opportunity Reconciliation Act, which was passed in 1996. The system was required to be in place by 1998, not 1988.

There are other aspects of the PRWORA which South Carolina is continuing to violate. We blogged about one of them at TRYING TO GET THE SC NEW HIRE REPORTING STATUTE "RIGHT." We have also made suggestions for cleaning up "the Mess at DSS."

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Wednesday, March 17, 2010

 

TRYING TO GET THE SC NEW HIRE REPORTING STATUTE "RIGHT"

As many people are aware, we have long advocated amending the South Carolina New Hire Reporting Statute to both make it conform to federal mandates and to remove conflicts with Title 43 of the South Carolina Code. Earlier this week, an e-mail was forwarded to us that both criticised the specifics of our proposal and served to update us concerning efforts in the South Carolina General Assembly to amend Title 63 of the South Carolina Code to conform to federal law. The e-mail had been edited somewhat to "protect the innocent." And we are editing it further both to "protect the innocent" and to remove some immaterial or irrelevant portions (in our opinion) of the forwarded e-mail:

As to the issue of leaving both Title 43 and Title 63 provisions in the Code (which is what I believe you are proposing), I am at a loss to understand the wisdom of such a move. Our present problem stems from the fact that we have two separate statutes creating two separate New Hire Programs. One is voluntary (and was created in the late 1970s before the federal law was enacted) and contains many provisions that are inconsistent (and probably conflict) with federal law. The other is mandatory and mirrors the federal requirements. Why you or anyone (DSS also proposed this idea initially, but they have since agreed that one of the Sections needs to go) would advocate leaving both Title 43 and Title 63 intact is beyond my comprehension. Title 63 and Title 43 are inconsistent. They are inconsistent regarding when reports must be submitted, the contents of the reports, and several other matters, and Title 63 fails to exempt certain workers and fails to allow multi-state employers to choose a single state from which to file a report. The New Hire Program currently found in Title 63, whether it’s made mandatory or remains voluntary, needs to go. The New Hire Program in Title 43, with the few technical revisions I made to it in [a proposed] bill, is the plan that complies with federal law.

I imagine that DSS will have some kind of a position on this bill. But I have it from Mr. Bray, the legislative liaison for DSS, that DSS concedes that the current Title 63 program does not comply with federal law, and that the language in Title 43 does.
Initially, our focus was only on § 63-17-1210 of the South Carolina Code and the removal of one particular statutory section that we believed conflicted with both 42 U. S. C. 653a and § 43-5-598 of the South Carolina Code. We could not even get anyone in the General Assembly to even read the PRWORA in its entirety, much less to agree that there were internal conflicts within the South Carolina Code. However:
  1. There now appears to be a consensus that § 43-5-598 complies with the mandates of 42 U. S. C. 653a, that “Title 63 and Title 43 are inconsistent,” and that § 63-17-1210 “contains many provisions that are inconsistent (and probably conflict) with federal law;”
  2. DSS now agrees that “[t]he New Hire Program currently found in Title 63...needs to go;” and,
  3. “DSS concedes that the current Title 63 program does not comply with federal law, and that the language in Title 43 does.”
The preceding enumerated circumstances change the scope of the matter and also, in our opinion, both change the appropriate remedy to the problem and increase the potential for passing appropriate remedial legislation in South Carolina. Therefore, we suggest, rather than recodifying § 43-5-598 in Title 63 of the South Carolina Code, that the South Carolina General Assembly simply repeal § 63-17-1210 in its entirety. That would leave the entire statutory scheme set forth in Title 43 intact, would obviate the need for a "savings clause," and would allow South Carolina to avoid having to address the question of whether South Carolina is presently in conformity with federal law. Additionally, as a practical matter, we think it will be easier for DSS, and whoever else supports amending the New Hire Reporting Statute to conform to federal law, to convince the members of the General Assembly to go along with the suggested amendments if it is made clear that no new sweeping legislation is being introduced, but only that a statutory provision which, from a technical standpoint, was repealed by implication when § 43-5-598 was enacted, is now being formally repealed.

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Thursday, March 11, 2010

 
WHY WOULD A SOUTH CAROLINA STATE SENATOR INTRODUCE LEGISLATION THAT VIOLATES FEDERAL LAW?

Last week we posted a proposed amended version of § 63-17-1210 South Carolina Code Ann. (1976, as amended).* More important, Republican South Carolina State Senator Michael Rose introduced Legislation that attempts to bring South Carolina's New Hire Reporting Statute into conformity with federal law by repealing § 43-5-598 of the South Carolina Code and amending § 63-17-1210 to make the new hire reporting aspects of the law mandatory rather than voluntary.

We commend Senator Rose for his efforts. Unfortunately, while his proposed Bill does, in fact, address the problem we initially raised, we believe it creates other problems that may or may not be as severe. Additionally his proposed Bill itself conflicts with 42 U.S.C. § 653a. Moreover, by providing employers with additional time to comply with 42 U.S.C. § 653a and providing DSS with additional time to create a New Hire Reporting Directory Senator Rose is, in essence, admitting that South Carolina has been out of compliance of federal law for twelve years. As we previously wrote, § 63-17-1210 South Carolina Ann. (1976, as amended) conflicts with 42 U. S. C. § 653a. § 43-5-598. On the other hand, as we have also previously noted, § 43-5-598 of South Carolina Code Ann. (1976, as amended) conforms with federal law and provides in relevant part, "This section remains in effect until the federal mandate requiring a mandatory new hire reporting program is repealed."

Clearly, the federal mandate requiring a mandatory new hire reporting program has not been repealed. Therefore, we wonder why a South Carolina State Senator would even consider introducing Legislation that would repeal the § 43-5-598.

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Monday, March 08, 2010

 
SC STATE SENATOR INTRODUCES LEGISLATION THAT ATTEMPTS TO REVISE SC'S NEW HIRE REPORTING STATUTE TO CONFORM TO FEDERAL LAW

Last week we posted a proposed amended version of § 63-17-1210 South Carolina Code Ann. (1976, as amended).* More important, Republican South Carolina State Senator Michael Rose introduced Legislation that attempts to bring South Carolina's New Hire Reporting Statute into conformity with federal law by repealing § 43-5-598 of the South Carolina Code and amending § 63-17-1210 to make the new hire reporting aspects of the law mandatory rather than voluntary.

We commend Senator Rose for his efforts. Unfortunately, while his proposed Bill does, in fact, address the problem we initially raised, we believe it creates other problems that may or may not be as severe. Additionally his proposed Bill itself conflicts with 42 U.S.C. § 653a. Moreover, by providing employers with additional time to comply with 42 U.S.C. § 653a and providing DSS with additional time to create a New Hire Reporting Directory Senator Rose is, in essence, admitting that South Carolina has been out of compliance of federal law for twelve years.

We have been lead to believe that DSS does not need additional time to create a New Hire Reporting Directory. In fact, Larry McKeown assured us that a New Hire Reporting Directory already exists and that thousands of South Carolina employers already comply with the new hire reporting mandates of 42 U.S.C. § 653a. So why not leave § 43-5-598 intact and immediately make the necessary changes to § 63-17-1210? In all likelihood, it will be weeks before the remedial Legislation can be signed into law by the Governor, so employers will have plenty of time to "voluntarily" comply with the current version of § 63-17-1210 now that they know a remedial Bill is in the pipeline. And, we would think that the AG's Office, the South Carolina State Senate, DSS, and the Office of the Lt. Governor would all want to make sure that they are presently in compliance with existing federal laws before any new and cumulative/repetitive South Carolina Laws come into effect.

We appreciate--in both senses of the word--what Senator Rose is up against in his efforts to rectify what was hopefully merely a mistake on the part of the South Carolina General Assembly. However, in drafting remedial Legislation, Senator Rose should remain cognizant of the fact that, as DSS has advised the General Assembly, South Carolina has been--and will continue to be--severely fined for its failure to comply with other aspects of the PRWORA. Moreover, the South Carolina General Assembly must be mindful of the fact that its failure to correct its New Hire Reporting Statute can be taken into consideration by the United States Department of Health and Human Services in deciding whether to continue to impose fines against South Carolina for its failure to implement a computerized child support collection and tracking system or whether to impose more severe penalties.

In short, while there is no upside for South Carolina allowing employers additional time to comply with § 63-17-1210 and 42 U.S.C. § 653a., there is a great deal of downside to Senator Rose's proposed Legislation. Therefore, unless the amended Legislation can be revised to "solve for pattern,"** it should be scrapped.

*Those who wish to review our proposed Legislation may view it at “REVISING SOUTH CAROLINA'S NEW HIRE REPORTING STATUTE TO CONFORM TO FEDERAL LAW.”

**The concept of "Solving for pattern," was coined by Wendell Berry in his essay of the same title and is the process of finding solutions that solve multiple problems while minimizing the creation of new problems. The essay was originally published in the Rodale Press periodical "The New Farm." And although Mr. Berry used the phrase in direct reference to agriculture, it has since come to enjoy broader use among problem-solvers of all stripes.

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Saturday, March 06, 2010

 
SOUTH CAROLINA DEPARTMENT OF SOCIAL SERVICES TO BE AUDITED?

Bill Davis writes in the March 5, 2010 edition of South Carolina Statehouse Report:

DSS may be next

Move over DOT, ESC. The next acronymic state agency that might get investigated by the LAC (Legislative Audit Council) may be DSS, or the S.C. Department of Social Services.

Senate leaders reportedly are not pleased with reports that the agency that is charged with assisting and protecting some of the state’s most vulnerable citizens may have to pay between $10 million and $13 million in fines for this year and next year for failing to comply with federal guidelines. The agency is already struggling due to a sudden increase in calls for family assistance as a failing economy has caused major stress on many South Carolina families (emphasis added).
While we do not doubt the accuracy of Mr. Davis' prediction, we do have two observations and one question.

First, the observations: (1)The fact that federal fines are to be assessed against South Carolina is such old news that we are surprised that anyone who covers South Carolina State Government would find this currently newsworthy. (2.) There is no need to perform an audit to determine who is to blame for the Mess at DSS; Larry McKeown and the General Assembly share the blame for the years 1998--2008 inclusive and Dr. Kathleen Hayes, Virginia Williamson, Esq., Larry McKeown, and the General Assembly share the blame for the years 2009-2012 inclusive.

And, now the question: Which Senate Leaders have just now become "not pleased" with a problem that has existed for over five (5) years? After all, this is one of the issues that House Freshmen were demanding answers about last year.

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