Haw. Code R. § 5-31-38 - State collection and disbursement unit

(a) The agency shall maintain a statewide collection and disbursement unit. This unit shall receive child support collections and disburse funds to the proper parties as required by federal law.

(b) The agency shall meet the federal requirements governing the disbursement of money received pursuant to a child support order.

(c) When the non-custodial parent makes a child support payment by personal check and there are insufficient funds in the account, the non-custodial parent shall be instructed to submit future payments by cashier's check, certified bank check, money order, or another method that will ensure valid payment.

(d) When the non-custodial parent's employer makes a child support payment by company check and there are insufficient funds in the account, the employer shall be instructed to submit future payments by cashier's check, certified bank check, money order, or another method that will ensure valid payment.

(e) Any check received that does not clear due to insufficient funds or any other reason, may not be given credit as payment for child support.

(f) When the agency disburses a payment to the custodial parent, an assignment of the right to receive and retain the amount that the agency disbursed is created from the custodial parent to the agency in the following circumstances:

(1) Where a payment is disbursed to the custodial parent based upon a check received by the agency that does not clear due to insufficient funds or for any other reason;

(2) Where a payment is disbursed to the custodial parent based upon a federal or state tax intercept refund received by the agency that has subsequently been retracted by the federal or state tax authority; or

(3) Where a payment received by the agency is erroneously disbursed to the custodial parent.

The amount covered by the assignment may be established as an arrearage owed by the non-custodial parent to the agency and may include any applicable fees. Such arrearages shall be eligible for collection through all appropriate child support enforcement mechanisms.

(g) The agency may proceed against the custodial parent or non-custodial parent to recoup any payment disbursed inappropriately.

(h) If the agency has received child support in an amount that exceeds the amount due and has access to the overpayment, or if the agency determines that reimbursement can be made, the agency shall distribute all appropriate refunds within thirty calendar days to the non-custodial parent after the overpayment has been discovered. If the overpayment has been released to the obligee, the agency shall notify the obligee of the overpayment and inform the obligee of his or her obligation to refund the overpayment.

Notes

Haw. Code R. § 5-31-38

[Eff and comp MAR 30 2014] (Auth: HRS §§ 576D-2, 576D-6, 576D-10) (Imp: HRS §§ 576D-2, 576D-6, 576D-10; 45 C.F.R. 302.33(d))