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, 205.7685,
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, 654, 659, 664,
666(a)(1)-(4), (6)-(12), (14)- (19), (b), (c)
STATUTORY AUTHORITY: KRS 15.055(2), 186.570(2),
194A.050(1), 205.712(2)(o), 205.712(16), 205.745(9), 205.7685(3), 205.795,
405.411(2), 405.520, 42 U.S.C. 652, 653, 654, 656, 659, 666(a), (b), (c), 669a
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 this 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 and administrative hearing to contest
the CS-68; or
3. Post a bond satisfactory to the cabinet; and
(e) After an administrative hearing, if a case
does not qualify for the withhold and deliver process, send a CS-70, Release 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:
a. The obligor may contest the lien as specified
in 921 KAR 1:430;
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 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.
(7) Consumer Reporting Agency (CRA). Prior to
requesting information from a CRA for enforcement purposes and if the obligor
has not provided written consent for CSE to request information from a CRA, the
cabinet shall notify the obligor:
(a) By sending a CS-93, Notice of Intent to
Request Information from Credit Reporting Agency; and
(b) In accordance with KRS 205.7685(2).
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 of Order to Withhold and
Deliver", 9/10;
(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", 10/12;
(k) "CS-89 Income Withholding for
Support", 3/15;
(l) "CS-93 Notice of Intent to Request Information
from Credit Reporting Agency”, 3/15;
(m) "CS-119 Noncustodial Parent's Notice of
Lien", 9/10;
(n) "CS-120 Release of
Lien", 9/10;
(o) "CS-121 Noncustodial Parent's Answer to
Withhold and Deliver", 9/10;
(p) "CS-122 Advance Notice of Intent to
Collect Past-Due Support", 10/12; and
(q) "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. (20 Ky.R.
2299; eff. 3-14-1994; Am. 21 Ky.R. 2557; 22 Ky.R. 61; eff. 6-21-1995; 1389;
1606; eff. 3-7-1996; 23 Ky.R. 3432; 3831; 4154; eff. 6-16-1997; 24 Ky.R. 2033;
2380; eff. 5-18-1998; 25 Ky.R. 644; 1642; eff. 1-19-1999; Recodified from 904
KAR 2:410, 2-1-1999; 26 Ky.R. 241; 776; eff. 10-20-1999; 27 Ky.R. 1955; eff.
3-6-2001; 28 Ky.R. 1703; 2216; eff. 3-28-2002; 30 Ky.R. 1127; 1554; eff.
1-5-2004; Tam eff. 10-27-2004 31 Ky.R. 1362; 1519; 1680; eff. 3-8-2005; 33
Ky.R. 249; eff. 9-20-2006; 34 Ky.R. 1874; 2146; eff. 3-19-2008; 35 Ky.R. 1927;
eff. 3-11-2009; Tam eff. 5-14-2009; 36 Ky.R. 2395; 37 Ky.R. 385; eff. 8-18-2010;
39 Ky.R. 345; 776; eff. 10-17-2012; 41 Ky.R. 1715; 2000; eff. 4-3-2015.)
