Haw. Code R. § 5-31-32.2 - Administrative financial institution data match

(a) The agency shall enter into agreements with financial institutions to exchange data related to non-custodial parents that owe arrearages.

(b) The agency may be responsible for freezing and seizing funds from the accounts of delinquent non-custodial parents that have active accounts. The administrative financial institution data match process may be initiated against a non-custodial parent who owes arrearages equal to or greater than the amount owed for one month of child support and the arrearages amount has been outstanding for a three month period.

(c) A notice of lien and levy shall be served on the financial institution that may be holding funds on behalf of a non-custodial parent to whom subsection (b) applies. Upon being served with notice, the financial institution:

(1) Notifies the account holders of the freeze of the account and the impending seizure;

(2) Discloses to the agency the amount being held, if any, pursuant to the notice of lien and levy, and also inform the agency of any safe deposit box held in the name of the non-custodial parent; and

(3) Sixty calendar days after being served with the lien, shall turn over the funds to the agency unless otherwise informed by the agency that the institution should hold onto the funds for a longer period.

(d) After serving the notice of lien and levy on the financial institution, the agency shall serve notice upon the non-custodial parent of the agency's intent to seize funds in the account held by the financial institution. The notice shall be sent by regular mail to both the last known address of record of the non-custodial parent as shown in the records of the financial institution and the address of record of the non-custodial parent as shown in the agency's child support record. For purposes of this section, the date of service means two working days following the date of mailing of the notice to the non-custodial parent by the agency. The notice shall contain the following information:

(1) Identification of the financial institution where the funds are being held;

(2) The name, the last four digits of the social security number, if available, and each applicable child support case number or numbers of the non-custodial parent;

(3) The amount of the arrears owed by the non-custodial parent; and

(4) A statement that the non-custodial parent may contest the seizure by requesting an administrative review in writing within fourteen calendar days of the date of service of the notice of intent to seize the funds.

(e) After receipt of a written request by the non-custodial parent for an administrative review on the seizure of the funds held by the financial institution, the agency shall proceed under section 5-31-35.1.

(f) If the agency receives a timely request for an administrative review prior to the agency receiving the funds from the financial institution, the agency may notify the financial institution to hold the funds until the administrative review has been completed.

(g) If, after the administrative review, it is determined that the seizure is proper and the funds have not been released to the agency, the financial institution shall be notified to release the funds to the agency.

(h) If, after the administrative review, it is determined that the seizure is improper and the funds have not been released to the agency, the financial institution shall be notified that the lien is released.

Notes

Haw. Code R. § 5-31-32.2

[Eff and comp MAR 30 2014] (Auth: HRS § 576D-15) (Imp: HRS § 576D-15; 45 C.F.R. §303.6)