921 KAR 1:410. Child support collection and enforcement

Link to law: http://www.lrc.ky.gov/kar/921/001/410.htm
Published: 2015

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      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.)