921 KAR 1:410 - Child support collection and enforcement
RELATES TO: KRS 13B.010(2), 15.055, 67A.620, 95.620(1), 95.878, 131.570, 161.700(1), 186.570(2), 205.594, 205.595, 205.710-205.802, 237.110(4), 403.211-403.215, 405.060(2), (3), 405.405-405.991, 407.5101-407.5902, 427.125, 31 C.F.R. 285.1, 285.3, 45 C.F.R. 302.32-302.36, 302.60-302.80, 303.3, 303.6, 303.31, 303.32, 303.35, 303.70, 303.72, 303.100-303.102, 303.104, 15 U.S.C. 1673, 42 U.S.C. 652, 653, 653A, 654, 659, 664, 666(a)(1)-(4), (6)-(12), (14)- (19), (b), (c)
NECESSITY, FUNCTION, AND CONFORMITY: KRS 194A.050(1) requires the secretary to promulgate administrative regulations necessary to implement programs mandated by federal law or to qualify for the receipt of federal funds and necessary to cooperate with other state and federal agencies for the proper administration of the cabinet and its programs. 42 U.S.C. 666 requires states to have laws that prescribe procedures to improve effectiveness of child support enforcement. KRS 205.712(2)(o) requires the Cabinet for Health and Family Services to collect and enforce child support obligations and authorizes the cabinet to promulgate administrative regulations to implement its duties. This administrative regulation establishes procedures for collection and enforcement of child support.
Section
1. Definition. "Lump sum payment of any kind" means a lump sum
payment of earnings as defined in KRS 427.005.
Section 2. Collection.
(1) Income withholding shall be used for the
collection of a support obligation or health insurance coverage in an order
being enforced by the Child Support Enforcement (CSE) program.
(2) The cabinet shall issue the CS-89, Income
Withholding for Support and CS-72, National Medical Support Notice to an
employer or other income source:
(a) Within
fifteen (15) calendar days of a request for income withholding; or
(b) Within two (2) working days after entry
of an obligor into the State Directory of New Hires.
(3) The employer or other income source
shall:
(a) Implement income withholding no
later than the first pay period that occurs after fourteen (14) working days
following the date of the CS-89; and
(b) Transfer the CS-72 to the employer's
health plan administrator within twenty (20) business days after receipt of the
notice.
(4) The employer
or other income source, in accordance with KRS 405.465(4) and (6)(a), may
deduct the sum of one (1) dollar for each payment made pursuant to the
order.
(5) The total amount to be
withheld shall not exceed the maximum amount allowed under 15 U.S.C. 1673(b).
(6) In the case of an
initial withholding, the cabinet shall send the obligor a copy of the CS-89 in
order to notify the obligor that the income withholding:
(a) May be contested by requesting an
administrative hearing pursuant to 921 KAR 1:430, in accordance with KRS 405.467(4); and
(b) Shall apply to
the current and any subsequent employer.
(7) The health plan administrator shall
notify the obligor and the cabinet of the health insurance coverage within
forty (40) working days of receipt of the CS-72.
(8) If an obligor terminates employment, the
employer or other income source shall notify the cabinet of the obligor's last
known address and name of the new employer, if known, in accordance with KRS 405.465(5).
(9) An obligor shall
inform the cabinet of any changes in:
(a) A
current employer or source of income ;
(b) Access to health insurance; and
(c) Residential or mailing address.
(10) If an obligor transfers or
assigns income or income -producing property after receipt of notification of a
child support obligation, the cabinet shall take action pursuant to KRS 405.060.
(11) If an arrearage only
amount is subject to withholding, the arrearage payment and frequency of
payment shall be equal to the payment and frequency last designated by court or
administrative order.
(12) The
employer or other income source shall forward:
(a) The support obligation payment to the
state disbursement unit in the child support agency within seven (7) working
days from the date an amount is withheld; or
(b) The medical insurance premium to the
health insurance carrier or notify the cabinet prior to payment if more than
one (1) option is available under a plan within twenty (20) business
days.
(13) The employer
or other income source shall include on the transmittal to the cabinet the
obligor's:
(a) Name;
(b) Social Security number; and
(c) Cabinet-assigned identification
number.
(14) The employer
or other source of income shall not be required to change payroll frequency but
shall withhold:
(a) At least once monthly;
and
(b) May combine withheld
amounts from more than one (1) obligor 's income in a single payment to the
cabinet, if the amount attributable to each obligor is identified by:
1. Name;
2. Social Security number; and
3. Cabinet-assigned identification
number.
(15)
(a) An employer with twenty (20) or more
employees shall provide written notification of a lump sum payment of any kind
of $150 or more to be made to an employee who is currently under an income
withholding order, in accordance with KRS 405.465.
1. The written notice to the cabinet shall
include the following:
a. Name of the
employee;
b. Social Security number
of the employee;
c. Amount of the
lump sum payment; and
d. Intended
payment date.
2. The
notice may include multiple employees on one (1) written notification if the
information in accordance with subparagraph 1 of this paragraph is provided for
each employee.
(b) Upon
receipt of notification of a lump sum payment, Child Support Enforcement shall
determine if the employee owes an arrearage on a support obligation enforced by
the cabinet.
(c) If the employee
owes no arrearage , Child Support Enforcement or its designee shall notify the
employer to release the lump sum payment to the employee.
(d) If the employee owes an arrearage ,
pursuant to paragraph (b) of this subsection, Child Support Enforcement or its
designee shall initiate:
1. A court order to
the employer in accordance with KRS 405.465; or
2. An administrative order in accordance with
KRS 405.470.
(e) If Child
Support Enforcement or its designee does not contact the employer, the employer
shall:
1. Hold the lump sum for thirty (30)
calendar days, in accordance with KRS 405.465(6)(a), from the projected date of
its release; and
2. Release the
lump sum payment to the employee after the 30th calendar day, unless the
employer has received from Child Support Enforcement or its designee a court
order or an administrative order to withhold any portion of the lump sum
payment.
(16)
If an obligor receives unemployment compensation benefits, the cabinet shall:
(a) Through an agreement with the Education
Cabinet, Office of Employment and Training, submit a CS-76, Unemployment
Insurance Notice of Withholding, to the Department of Unemployment Insurance
within the Education Cabinet to collect a child support payment from an obligor
receiving unemployment compensation; and
(b) Notify an obligor with a CS-73,
Unemployment Insurance Letter, along with a copy of the CS-76, Unemployment
Insurance Notice of Withholding that:
1.
Current child support obligation or delinquency is owed;
2. The cabinet has completed a CS-76 to order
withholding of:
a. Fifty (50) percent of the
unemployment benefit; or
b. The
amount of the assigned support obligation , whichever is less; and
3. The obligor may contest the
withholding by requesting an administrative hearing as specified in 921 KAR 1:430.
Section
3. Support Collection by Methods Other than Collection through
Income Withholding.
(1) Federal income tax
refund offset and federal administrative offset.
(a) A public assistance case shall qualify
for offset if there is:
1. A court-ordered or
administratively-established support obligation;
2. An assignment of support to the
cabinet;
3. An arrearage of at
least $150; and
4. Cabinet
verification of the accuracy of the obligor 's name and Social Security
number.
(b) A nonpublic
assistance case, for which the cabinet is providing services, involving
past-due child support, a specific dollar amount of medical support, or spousal
support shall qualify for offset if the:
1.
Cabinet is enforcing a court-ordered or administratively-established support
obligation;
2. Cabinet verifies
accuracy of the obligor 's name and Social Security number;
3. Nonpublic assistance arrearage owed is
equal to or greater than $500, exclusive of fees, court costs, or other
non-child support debt; and
4.
Cabinet has the following:
a. A copy of the
current support order;
b. A copy of
the payment record; and
c. The
custodial parent 's last known address.
(c)
1. If a
case is submitted for federal tax refund offset , the case may be subject to
federal administrative offset of nonexempt federal payments pursuant to 42 U.S.C. 664 and 31 C.F.R. 285.1 and 285.3.
2. Nonexempt federal payments shall be denied
to individuals owing a child support arrearage as defined in paragraphs (a) and
(b) of this subsection.
(d) An Advance Notice of Intent to Collect
Past Due Support, Form CS-122, shall be sent to the obligor of the intent to
intercept the tax refund and the administrative offset to be applied to the
obligor 's account. The notice shall inform noncustodial parents:
1. Of their right to contest the fact that
past due support is owed or the amount of past due support by requesting an
administrative hearing ;
2. Of the
procedures and timeframe for contacting CSE to request an administrative
hearing ;
3. That the hearing shall
be conducted by the submitting state unless the noncustodial parent requests
the hearing be conducted by the state with the order upon which the referral
for offset is based; and
4. That,
in the case of a joint return, the Secretary of the U.S. Treasury shall notify
the noncustodial parent 's spouse at the time of offset regarding the steps to
take to protect the share of the refund which may be payable to that
spouse.
(2)
State income tax refund offset.
(a) A public
assistance case and nonpublic assistance case shall qualify for offset if there
is:
1. A court-ordered or
administratively-established support obligation;
2. An assignment of support to the cabinet or
the Child Support Enforcement program is providing services involving past due
child support, a specific dollar amount of medical support, or spousal
support ;
3. An arrearage of at
least $150; and
4. Cabinet
verification of the accuracy of the obligor 's name and Social Security
number.
(b) In accordance
with KRS 131.570, an advance written notice shall be sent to the obligor that
he may contest the accuracy of a past due amount by requesting an
administrative hearing as specified in 921 KAR 1:430.
(3) Tort claim settlements and state
administrative offset . The cabinet shall:
(a)
Identify a child support case for state administrative offset , including tort
claim settlements, if a child support case meets the criteria specified in
subsection (2)(a) or (b) of this section; and
(b) Notify the Finance and Administration
Cabinet to offset administrative payments, including tort claim settlements, in
accordance with KRS 205.712(17), for a case identified in paragraph (a) of this
subsection.
(4) Financial
Institution Data Match (FIDM). The cabinet shall:
(a) Use the following criteria to identify a
case for seizure of assets:
1.
a. Assignment of support is made to the
cabinet; or
b. Child Support
Enforcement program is providing support services; and
2. The obligor owes past-due support in an
amount equal to or greater than one (1) month's support obligation;
(b) Issue a CS-68, Order to
Withhold and Deliver, and CS-69, Answer to Withhold and Deliver, to a financial
institution holding the obligor 's account or accounts;
(c) Issue a CS-68 and CS-121, Noncustodial
Parent 's Answer to Withhold and Deliver, to the obligor within two (2) working
days:
1. After both of the forms specified in
paragraph (b) of this subsection are issued to the financial institution;
and
2. To notify the obligor that
the funds in the account with the financial institution may be retained by
requesting an administrative hearing to contest the Order to Withhold and
Deliver in accordance with 921 KAR 1:430;
(d) Notify an obligor that to retain the
funds in the account with the financial institution, an obligor shall take one
(1) of the following actions within twenty (20) calendar days from the date of
receipt of a CS-68:
1. Pay the total
arrearage ;
2. Request an
administrative hearing to contest the CS-68; or
3. Post a bond satisfactory to the cabinet;
and
(e) To release or
amend an Order to Withhold and Deliver, send a CS-70, Release/Amendment of
Order to Withhold and Deliver to:
1. The
obligor ; and
2. The financial
institution.
(5) If a seizure of assets request is
identified, as specified in subsection (4)(a) of this section, and is initiated
from outside the commonwealth as a result of a FIDM, pursuant to 42 U.S.C. 666(a)(17), the cabinet shall comply with KRS 205.712, 407.5305, and 407.5507
to issue:
(a) A CS-68 and a CS-69 to a
financial institution holding the obligor 's account or accounts;
(b) A CS-68 and a CS-121, Noncustodial
Parent 's Answer to Withhold and Deliver, to the obligor within two (2) working
days after both of the forms specified in paragraph (a) of this subsection are
issued to the financial institution; and
(c) A CS-70 to the financial institution if
the initiating state's request is withdrawn.
Section 4. Enforcement Actions.
(1) Liens.
(a) The cabinet shall file a lien on an
obligor 's interest in personal or real property, in accordance with KRS 205.745, if:
1. The obligor owes an arrearage
equal to or greater than one (1) month's obligation;
2. The child support has been assigned to the
cabinet;
3. The property has been
identified and located; and
4. The
value of the property exceeds the costs related to filing the lien.
(b) To file a lien, the cabinet
shall:
1. Issue a CS-85, Notice of Lien, for
property within or outside Kentucky in accordance with KRS 205.745 or 205.7785;
and
2. Provide a CS-119,
Noncustodial Parent 's Notice of Lien, along with a copy of the CS-85 to the
obligor notifying him that:
b. A transfer of property in order to avoid
payment shall be considered an act of fraud, in accordance with KRS 405.060(2);
and
c. If the obligor makes full
payment of the arrearage , including interest, penalties, and fees, a CS-120,
Release of Lien, shall be provided to the obligor.
(c) To release a lien, the cabinet
shall provide a CS-120, Release of Lien, to the obligor .
(2) License and certificate denial,
suspension, or revocation.
(a) If an obligor
owes an arrearage equal to or greater than six (6) months of an assigned
support obligation or fails to comply with a subpoena or warrant relating to
paternity or child support proceedings, as established in KRS 205.712(9):
1. The cabinet shall forward the name of the
individual to a board of licensure or board of certification for the
notification of the denial, revocation, or suspension of a driver's license,
professional license or certification, occupational license or certification,
recreational license, or sporting license.
2. The denial or suspension shall remain in
effect until:
a. The obligor makes full
payment of the arrears;
b. Payments
on the past due child support are made in accordance with a court order, an
administrative order, or Payment Agreement, CS-78;
c. The obligor complies with the subpoena or
a warrant relating to paternity or child support proceedings has been
removed;
d. The obligor provides
supporting documentation of extenuating circumstances that is accepted by the
cabinet; or
e. The appeal of the
denial or suspension is upheld and the license is reinstated.
3. The cabinet shall send to the
obligor a CS-44, Notice of Intent to Request Denial or Suspension, which
includes:
a. A section for an Answer to Notice
of Intent providing the obligor with notice of the obligor 's right to request
an administrative hearing contesting the action as specified in 921 KAR 1:430;
and
b. Notification that the CS-63,
Notice to Licensing/Certification Board or Agency shall be rescinded if an
action specified in paragraph (a) 2 of this subsection has been
taken.
4. The cabinet
shall send to the issuing agency or board of licensure or certification a
CS-63, if an action in subparagraph 2 of this paragraph has not been
taken.
5. The cabinet shall send to
the issuing agency or board of licensure or certification a CS-63, within
twenty (20) calendar days of the date of administrative hearing decision, if an
administrative hearing results in a finding that the case qualifies for:
a. A license or certificate denial;
b. Suspension; or
c. Revocation.
6. The cabinet shall notify the issuing board
or agency that the obligor is no longer subject to denial, suspension, or
revocation, if the obligor , in accordance with KRS 205.712(11):
a. Has eliminated the child support
arrearage ;
b. Is making payments on
the child support arrearage in accordance with a court or administrative order;
or
c. Complies with a subpoena or
warrant relating to paternity or child support proceedings.
(b) If an obligor owes
an arrearage equal to or greater than one (1) year's obligation, the cabinet
shall take action against a license to carry a concealed deadly weapon as
specified in KRS 237.110(4).
(3) Vehicle booting.
(a) If an obligor owes an arrearage equal to
or greater than six (6) months obligation of an assigned support obligation and
fails to comply with a subpoena or warrant relating to a child support
proceeding, the cabinet may enforce a lien on a vehicle registered to the
obligor by immobilization with a vehicle boot as established in KRS 205.745(9).
(b) The cabinet shall:
1. Verify with the Department of Vehicle
Regulation that the vehicle identification number for the vehicle to be booted
is register in the obligor 's name;
2. Verify the vehicle to be booted is solely
owned by the obligor , co-owned by the obligor and current spouse, or owned by a
business in which the obligor is the sole proprietor;
3. Send a notice of intent to the obligor ,
unless there is reason to believe that the obligor will leave town or hide the
vehicle;
4. File a lien in the
county where the vehicle is kept; and
5. Set a target date for booting the vehicle,
if the obligor does not contact the cabinet within ten (10) days of notice to
negotiate a settlement.
(c) The cabinet shall send a cancellation
notice to the obligor and to the appropriate local law enforcement personnel to
terminate the booting of the vehicle.
(4) Newspaper publication of a list of
delinquent obligors. If an obligor owes an arrearage equal to or greater than
six (6) months of an assigned support obligation or fails to comply with a
subpoena or warrant relating to paternity or child support proceedings, as
established in KRS 405.411, a cabinet designee under 205.712(6) may:
(a) Compile and furnish a list to a newspaper
of general circulation in that county for publication; and
(b) Include the name, last known address, and
the past due amount owed by the obligor .
(5) Passport denial, revocation, or
limitation. If the obligor owes an arrearage of $2,500 or more, in accordance
with 42 U.S.C. 652(k) and 654(31), the cabinet shall:
(a)
1.
Provide the Advance Notice of Intent to Collect Past Due Support, CS-122, to
the obligor of the determination to be referred for passport denial,
revocation, or limitation; and
2.
Include in the notice the consequences of the referral and the right to contest
the action by requesting a hearing in accordance with KRS 205.712(8);
(b) Provide the U.S. Secretary of
Health and Human Services the names of individuals and supporting documentation
for the denial, revocation, or limitation of the obligor 's passport;
and
(c) Notify the Secretary of the
U.S. Department of Health and Human Services that the cabinet requests the
release of the passport of an obligor that had been denied if any of the
following criteria are met:
1. There was an
erroneous submittal of a Social Security number;
2. There is a case of mistaken identity and
the cabinet has verified this information;
3. The obligor is required to pay the past
due support in full;
4. The obligor
provides documentation on company letterhead verifying travel for employment or
business purposes and makes alternate payment arrangements acceptable to the
cabinet; or
5. There are
extenuating circumstances in which the reason for travel is a family emergency
and supporting documentation is provided to and accepted by the
cabinet.
(6)
Delinquent list.
(a) The cabinet shall provide
to the Office of the Attorney General a list of names of delinquent obligors
for publication on the Internet, as established in KRS 15.055 and
205.712(16).
(b) The cabinet shall
send the obligor meeting the criteria in 40 KAR 1:080 a CS-175, Notice of
Intent to Place Noncustodial Parent 's Name on Delinquent Listing notifying him
of his right to contest by requesting a hearing.
Section 5. Incorporation by Reference.
(1) The following material is incorporated by
reference:
(a) "CS-44 Notice of Intent to
Request Denial or Suspension", 9/10;
(b) "CS-63 Notice to Licensing/Certification
Board or Agency", 9/10;
(c) "CS-68
Order to Withhold and Deliver", 9/10;
(d) "CS-69 Answer to Withhold and Deliver",
9/10;
(e) "CS-70 Release/Amendment
of Order to Withhold and Deliver", 9/16;
(f) "CS-72 National Medical Support Notice",
3/15;
(g) "CS-73 Unemployment
Insurance Letter", 9/10;
(h) "CS-76
Unemployment Insurance Notice of Withholding", 9/10;
(i) "CS-78 Payment Agreement",
9/10;
(j) "CS-85 Notice of Lien",
8/18;
(k) "CS-89 Income Withholding
for Support", 4/21;
(l) "CS-119
Noncustodial Parent 's Notice of Lien", 9/10;
(m) "CS-120 Release of Lien", 9/16;
(n) "CS-121 Noncustodial Parent 's Answer to
Withhold and Deliver", 9/10;
(o)
"CS-122 Advance Notice of Intent to Collect Past-Due Support", 10/12;
and
(p) "CS-175 Notice of Intent to
Place Noncustodial Parent 's Name on Delinquent Listing", 4/09.
(2) This material may be
inspected, copied, or obtained, subject to applicable copyright law, at the
Department for Income Support, Child Support Enforcement, 730 Schenkel Lane,
Frankfort, Kentucky 40601, Monday through Friday, 8 a.m. to 4:30 p.m.
Notes
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