1 TAC §§55.551 - 55.558
The Office of the Attorney General proposes new §§55.551
- 55.558 concerning the mechanism for a financial institution doing business
in Texas to enter into an agreement with the Child Support Division for matching
the names of delinquent child support obligors with the names of account holders.
Federal law (42 USC 666) requires financial institutions to participate in
this matching process. State law (Texas Family Code §231.307) requires
the State's Title IV-D agency to establish such procedures by rule.
Howard G. Baldwin, Deputy Attorney General for Child Support, has determined
that for the first five years these sections as proposed are in effect, there
will be no fiscal implications for state or local government.
Mr. Baldwin has also determined that for each year of the first five years
the sections are in effect, the public benefit as a result of these new sections
will be increased child support collections as a result of child support liens
being imposed on financial accounts owned by delinquent child support obligors.
In that these new sections merely describe the procedures that a financial
institution will follow in complying with the already existing federal and
State statutes, the new sections do not create any new economic costs for
financial institutions.
Mr. Baldwin has also determined that there will be no local employment
impact as a result of these new sections.
Comments on these proposed sections should be submitted to Michael Generali,
Contract Services, Child Support Division, Office of the Attorney General,
(physical address) 5500 East Oltorf, Austin, Texas, 78741 or (mailing address)
P.O. Box 12017, mail code 046, Austin, Texas 78711-2017.
The new sections are proposed under Texas Family Code §231.307.
The Family Code section is affected by Federal law (42 UC 666).
§55.551.Scope.
Section 466 of the federal Social Security Act (the Act), as amended
by the Personal Responsibility and Work Opportunity Reconciliation Act of
1996 (P. L. 104-193), requires each state to establish procedures under which
the state's child support enforcement agency (Title IV-D agency) shall enter
into agreements with financial institutions for the purpose of securing information
leading to the enforcement of child support orders. The Title IV-D agency
shall develop and operate, in coordination with such financial institutions
and the Federal Parent Locator Service, a data match system in which each
financial institution will provide each calendar quarter the name, record
address, social security number or other taxpayer identification number, and
other identifying information for each non-custodial parent who maintains
an account at such institution and who owes past-due child support, as identified
by the Title IV-D agency by name and social security number or other taxpayer
identification number.
§55.552.Definitions.
The following words and terms when used in this subchapter shall have
the following meanings, unless the context clearly indicates otherwise:
(1)
"Account" means a demand deposit account, checking or negotiable
withdrawal order account, savings account, time deposit account, or money-market
mutual fund account.
(2)
"Account owner record" means the record used by a financial
institution to report account owner information including payee identification
information, account balance and account type.
(3)
"Account file" means an electronic file submitted to the
Title IV-D agency listing all accounts of the financial institution under
the option provided by Match Method 1 (infra).
(4)
"Authorized representative" means an officer or executive
of a financial institution authorized to sign a memorandum of agreement (infra)
on behalf of the institution.
(5)
"FEIN" means the federal employer identification number.
(6)
"Financial institution" means:
(A)
a depository institution, as defined in Section 3(c) of
the Federal Deposit Insurance Act (12 U.S.C. 1813(c));
(B)
an institution-affiliated party, as defined in Section
3(u) of the Federal Deposit Insurance Act (12 U.S.C. 1813(u));
(C)
any federal credit union or state credit union, as defined
in Section 101 of the Federal Credit Union Act (12 U.S.C. 1752), including
an institution-affiliated party of such a credit union, as defined in Section
206(r) of such Act (12 U.S.C. 1786(r)); or
(D)
any benefit association, insurance company, safe deposit
company, money-market mutual fund, or similar entity authorized to do business
in the State.
(7)
"Financial institution record" means the record used by
a financial institution to report identifying information about the financial
institution including name, address, service bureau and reporting agent.
(8)
"Inquiry file" means electronic files sent by the Title
IV-D agency or OCSE (infra) to financial institutions electing to report under
Match Method 2 (infra) that contain records of delinquent child support obligors
that the institution will use to match against its records.
(9)
"Match Method 1" means the process used by a financial
institution to submit an electronic file containing all its open accounts
to the Title IV-D agency or its agent that is matched against records of delinquent
child support obligors.
(10)
"Match Method 2" means the process used by a financial
institution to conduct matches against an inquiry file (supra).
(11)
"Match file" means electronic files sent by a financial
institution to the Title IV-D agency or OCSE (infra) that report accounts
matched against an inquiry file supplied by the Title IV-D agency or OCSE
to the financial institution under Match Method 2 (supra).
(12)
"Memorandum of agreement" means a form completed and signed
by an authorized representative (supra) and the Title IV-D agency or its agent
for the purpose of exchanging information by way of an automated data exchange
system that serves as the official agreement between the financial institution
and the Title IV-D agency.
(13)
"Multi-state financial institution" means any financial
institution operating in two or more states that maintains accounts for its
customers.
(14)
"OCSE" means the Office of Child Support Enforcement within
the federal Department of Health and Human Services.
(15)
"Record" has the meaning given such term in section 1101
of the Right to Financial Privacy Act of 1978 (12 U.S.C. 3401).
(16)
"Reporting agent" means a service provider who has a contract
with a financial institution to report data match information.
(17)
"Single-state financial institution" means a financial
institution doing business exclusively within the State or a multi-state financial
institution declining the option to process data matches through OCSE.
(18)
"Total record" means the entire file submitted by a financial
institution to report individual accounts and the dollar amount associated
with each account, the total number of accounts and total dollar amount of
the records contained in the file.
§55.553.Financial Institution Data Match Reporting Requirements.
(a)
A financial institution doing business in the State shall
participate on a calendar quarter basis in the exchange of data with the Title
IV-D agency or its agent, matching the names of delinquent child support obligors
with the names of account holders and providing information from matched account
owner records on all accounts owned by the delinquent child support obligor.
A financial institution must share the required information with the Title
IV-D agency using data specifications approved by the federal Office of Management
and Budget (OMB Control No: 0970-0196) on March 5, 1999, in one of two methods:
(1)
Match Method 1 ("all accounts method"): A financial institution
shall submit to the Title IV-D agency or its designated agent an account file
and total record on a quarterly basis and within fourteen days of the end
of the week designated by the financial institution; or
(2)
Match Method 2 ("matched accounts"): A financial institution
shall conduct a data match against an inquiry file supplied by the Title IV-D
agency, OCSE, or authorized agent on all customer accounts maintained by the
financial institution. The financial institution must provide an account file
on all accounts that were matched with the inquiry file. The financial institution
must submit the total record to the Title IV-D agency, OCSE, or authorized
agent within 45 days of its receipt of the inquiry file. The financial institution
shall destroy, erase, or return the inquiry file to the Title IV-D agency
or OCSE within 45 days of its receipt of the inquiry file.
(b)
Financial institutions may contract with reporting agents
(also known as service agents, service providers, or transmitters). If a financial
institution chooses to contract with a service provider to report information
for the financial institution, the financial institution, rather than the
service provider, must sign the memorandum of agreement and the financial
institution remains responsible for compliance with the law.
(c)
Financial institutions conducting data matches with the
Title IV-D agency that choose to use a reporting agent/transmitter must inform
the Title IV-D agency by completing the appropriate section on the memorandum
of agreement. The Title IV-D agency must be informed of the institution's
decision to use an agent/transmitter in order to ensure the confidentiality
of data. Similarly, if an institution wishes the Title IV-D agency to send
the match file to a recipient whose Federal Employer Identification Number
(FEIN) is different from the institution, the Title IV-D agency must be notified.
(d)
Multi-state financial institutions that choose to use a
reporting agent/transmitter must inform OCSE by completing the appropriate
section on the memorandum of agreement. OCSE must be informed of the institution's
decision to use an agent/transmitter in order to ensure the confidentiality
of data. Similarly, if an institution wishes OCSE to send the data match file
to a recipient whose Federal Employer Identification Number (FEIN) is different
from the institution, OCSE must be notified.
§55.554.Memorandum of Agreement.
(a)
Each financial institution shall complete a memorandum
of agreement for the purpose of exchanging information by way of an automated
data exchange system implemented and managed by the Title IV-D agency. All
data provided shall meet the standards as set forth in the "Financial Data
Match Specifications Handbook," dated March 5, 1999. Multi-state financial
institutions may choose to conduct the data match through OCSE, and are governed
under §55.555 of this subchapter.
(b)
The memorandum of agreement shall include all agreements,
attachments to agreements, revised attachments, notices, financial institution
record, and other documents related to the status of the agreement between
the financial institution and the Title IV-D agency, and shall be governed
by the following:
(1)
All data and match results, including tapes or other media,
shall be addressed to the Title IV-D agency or its agent for data processing
as follows, or to such address as the Title IV-D agency shall later designate
in writing: Tier Technologies, Building 3, 1st floor, Suite 101, 171 Jersey
Street, Trenton, New Jersey 08611.
(2)
The financial institution shall submit and, as needed,
update a schedule of the quarterly submission dates to the Title IV-D agency.
(3)
The financial institution shall file an amended memorandum
of agreement with the Title IV-D agency whenever information provided by the
financial institution on the agreement changes and shall submit those changes
to the Title IV-D agency within 30 days of the effective date of change.
(4)
The financial institution shall file an amended memorandum
of agreement if the financial institution is involved in any merger, acquisition,
change of name, or any other transaction that could affect the financial institution's
performance under the agreement.
(5)
A memorandum of agreement commences on the date that the
last required signature is affixed to it and continues in effect until terminated
by mutual consent of the parties, as permitted by federal and state law.
(6)
A memorandum of agreement may be amended in writing at
any time by mutual consent of the parties.
(7)
A memorandum of agreement must be signed by both the financial
institution's authorized representative and by the financial institution's
agent, if an agent is used to process data matches for the institution, and
must include the FEINs for both the financial institution and the financial
institution's agent.
(8)
The financial institution shall designate a contact person,
who may be an agent of the institution, to perform the data match on its behalf,
and include the following information:
(A)
title,
(B)
street address,
(C)
mailing address,
(D)
e-mail address,
(E)
telephone number, and
(F)
facsimile number
(9)
The financial institution shall provide the name of a contact
person who will accept service for the institution of all legal notices resulting
from this agreement and include the following information:
(A)
title,
(B)
financial institution name,
(C)
street address,
(D)
mailing address,
(E)
e-mail address,
(F)
telephone number, and
(G)
facsimile number
(10)
The financial institution shall provide the name of a
contact person for resolution of lien and levy processing and include the
following information:
(A)
title
(B)
financial institution name
(C)
street address
(D)
mailing address
(E)
e-mail address
(F)
telephone number, and
(G)
facsimile number
(11)
The financial institution shall identify its preferred
media format for reporting to and receiving information from the Title IV-D
agency's agent from the following options:
(A)
3480 or 3490 tape cartridges
(B)
EBCDIC or ASCII format
(C)
tape reel
(D)
diskette--3.5 or 5.25 inch
(E)
CD-ROM
(F)
DAT--4mm or 8mm
(G)
file transfer protocol
(H)
internet
(I)
CONNECT: Direct
(J)
any other media format as authorized by the Title IV-D
agency.
(12)
The financial institution will indicate on the memorandum
of agreement which week of the calendar quarter it will transmit data or perform
the data match. Calendar quarters begin January 1, April 1, July 1 and October
1 of each year.
§55.555.Multi-State Financial Institution Data Match Reporting Requirements.
(a)
The Child Support Performance and Incentive Act of 1998
(P.L.105-200) modified the federal Social Security Act to better facilitate
the data match for multi-state financial institutions. 42 U.S.C. 652(l), as
amended, authorizes OCSE to act as the conduit between the States and territories
and the multi-state financial institutions in the development and implementation
of a centralized, quarterly data match program for the collection of delinquent
child support. Multi-state financial institutions may choose to match through
OCSE or with the individual states in which they do business. Financial institutions
choosing to participate as a multi-state financial institution must use Match
Method 2.
(b)
A multi-state financial institution choosing to match through
OCSE may contact OCSE at: Office of Child Support Enforcement, Multi-state
Financial Institution Data Match, Post Office Box 509, Randallstown, Maryland
21133, For assistance call: (410) 277-9312, FAX: (410) 277-9325, e-mail: fidm@ssa.gov,
Web site: http://www.acf.dhhs.gov/programs/cse.
(c)
If a multi-state financial institution discontinues its
reporting through OCSE, it shall promptly submit a memorandum of agreement
to enter the match process with the Title IV-D agency its agent.
§55.556.Liability of Financial Institutions for Disclosure of Information.
(a)
The federal Social Security Act (42 USC 666(a)(17)) provides
that a financial institution shall not be liable under any federal or state
law to any person
(1)
for any disclosure of information to the State child support
enforcement agency,
(2)
for encumbering or surrendering any assets they hold in
response to a notice of lien or levy issued by the state child support enforcement
agency, or
(3)
for any other action taken in good faith to comply with
the requirements of Section 466(a)(17)(A) of the Act. Section 469A of the
Act also provides protection from liability for multi-state financial institutions
disclosing information to the federal parent locate service through the multi-state
financial institution data match.
(b)
Section 231.307(d) of the Texas Family Code provides that
a financial institution providing information or responding to a notice of
child support lien provided under Subchapter G, Chapter 157, or otherwise
acting in good faith to comply with the Title IV-D agency's procedures under
this section may not be held liable under any federal or state law for any
damages that arise from those acts.
§55.557.Reimbursement to Financial Institutions for Data Processing.
Reimbursement to financial institutions for the cost of processing
the data required by this subchapter is not available.
§55.558.Confidentiality and Security.
(a)
The Title IV-D agency and each financial institution shall
develop procedures, subject to State and federal law and regulation, to ensure
that information contained in their respective records and obtained from each
other shall be kept confidential.
(b)
In accordance with section 453 of the Act, the information
provided to the financial institutions, or their designated agents, for the
purpose of conducting the data matches may not be used by such institutions
or agents for any other purpose and may not be disclosed to any person except
to the extent necessary to conduct the data matches. The financial institutions
or any of its agents shall return, destroy or erase all information provided
to the financial institution or any of its agents after completion of the
data matches. The total record provided by a financial institution to the
Title IV-D agency under this agreement remains confidential under federal
law 42 U.S.C. §669a(b).
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of
the Secretary of State, on May 21, 2001.
TRD-200102844
Susan D. Gusky
Assistant Attorney General
Office of the Attorney General
Earliest possible date of adoption: July 1, 2001
For information regarding this publication, please call A.G. Younger at
(512) 463-2110