CHAPTER 4. CHILD SUPPORT PROVISIONS OF TITLE IV-D OF THE FEDERAL SOCIAL SECURITY ACT
IC 31-25-4
Chapter 4. Child Support Provisions of Title IV-D of the Federal
Social Security Act
IC 31-25-4-1
"Bureau"
Sec. 1. As used in this chapter, "bureau" refers to the child
support bureau established by IC 31-25-3-1.
As added by P.L.145-2006, SEC.271.
IC 31-25-4-2
"Delinquent"
Sec. 2. As used in this chapter, "delinquent" means at least:
(1) two thousand dollars ($2,000); or
(2) three (3) months;
past due on payment of court ordered child support.
As added by P.L.145-2006, SEC.271.
IC 31-25-4-3
"Account"
Sec. 3. (a) As used in this chapter with regard to a financial
institution data match, "account" has the meaning set forth in 42
U.S.C. 666, and includes any of the following:
(1) A demand deposit account.
(2) A checking or negotiable order of withdrawal account.
(3) A savings account.
(4) A timed deposit account.
(5) A money market mutual fund account.
(b) As used in this chapter, "financial institution" has the meaning
set forth in 42 U.S.C. 666, and includes the following:
(1) A depository institution, as defined in Section 3(c) of the
Federal Deposit Insurance Act (12 U.S.C. 1813(c)).
(2) An institution affiliated party, as defined in Section 3(u) of
the Federal Deposit Insurance Act (12 U.S.C. 1813(u)).
(3) A federal or state credit union, as defined in Section 101 of
the Federal Credit Union Act (12 U.S.C. 1752), including an
institution affiliated party of a credit union (as defined in
Section 206(r) of the Act).
(4) A benefit association, insurance company, safe deposit
company, money market mutual fund, or similar entity
authorized to do business in Indiana.
As added by P.L.145-2006, SEC.271.
IC 31-25-4-4
"Obligor"
Sec. 4. As used in this chapter, "obligor" means a person whose
support obligation is enforced by the Title IV-D agency.
As added by P.L.145-2006, SEC.271.
IC 31-25-4-5
"Plan"
Sec. 5. As used in this chapter, "plan" refers to the state plan
developed to implement the provisions of Title IV-D of the federal
Social Security Act.
As added by P.L.145-2006, SEC.271.
IC 31-25-4-6
Repealed
(Repealed by P.L.1-2007, SEC.248.)
IC 31-25-4-7
Duties of bureau
Sec. 7. The bureau shall do the following:
(1) Develop and implement the state's plan for the
administration of Title IV-D. The plan must comply with all
provisions of state law and with the federal statutes and
regulations governing the program.
(2) Evaluate formally the quality, efficiency, effectiveness, and
scope of services provided under the plan developed and
approved by the governor and the United States Department of
Health and Human Services.
(3) Control financially the operation of the plan.
(4) Coordinate activities relating to and in compliance with the
requirements of the state's reciprocal enforcement of support
law of cases being pursued under the state plan. The bureau
shall make requests to the United States Department of Health
and Human Services Office of Child Support Enforcement for
use of the federal parent locator service, the other states' parent
locator services, the federal district courts, and the Internal
Revenue Service.
(5) Operate the state parent locator service.
As added by P.L.145-2006, SEC.271.
IC 31-25-4-8
Additional duties of bureau
Sec. 8. In addition to the duties imposed by section 7 of this
chapter, the bureau shall do the following:
(1) Perform one (1) of the following under IC 22-4-39:
(A) Enter into an agreement with each individual who owes
a child support obligation being enforced by the child
support bureau and who is eligible for unemployment
compensation benefits under IC 22-4 to have a specified
amount withheld from the benefits otherwise payable to the
individual, not to exceed the individual's unemployment
compensation weekly benefit amount.
(B) Bring legal process to require the withholding of
specified amounts from the individual's unemployment
compensation benefits.
(C) Accept an amount specified by the individual to be
deducted and withheld by the department of workforce
development.
(2) Notify the department of workforce development of the
amounts to be deducted from an individual's unemployment
compensation as determined under subdivision (1), not to
exceed the individual's weekly benefit amount of
unemployment compensation.
(3) Reimburse the department of workforce development for the
administrative costs incurred by the department under
IC 22-4-39.
As added by P.L.145-2006, SEC.271.
IC 31-25-4-8.5
Duties related to interception of winnings and prizes
Sec. 8.5. In addition to the duties imposed by sections 7 and 8 of
this chapter, the bureau shall do the following:
(1) Share data regarding obligors who are delinquent with:
(A) a licensed owner, operating agent, and trustee in
accordance with IC 4-33-4-27;
(B) a permit holder and trustee in accordance with
IC 4-35-4-16; and
(C) the state lottery commission;
to allow for the interception of cash winnings and prizes from
the obligors.
(2) Distribute money collected from the persons described in
subdivision (1) according to federal child support laws and
regulations.
As added by P.L.80-2010, SEC.48.
IC 31-25-4-9
Federal requirements
Sec. 9. The bureau shall consider and follow the federal
requirements imposed by statute and regulation governing the
formation of the state plan.
As added by P.L.145-2006, SEC.271.
IC 31-25-4-10
Agreements and communications with Title IV-A administrator;
time frame requirement
Sec. 10. The bureau shall make the agreements and maintain the
communications necessary with the agency that administers Title
IV-A of the federal Social Security Act to ensure proper operation of
the total program. Prompt notice for action in all cases must be given
between the bureau and the agency that administers Title IV-A of the
Federal Social Security Act. Cases shall be handled within the time
frame established by the federal statutes and regulations governing
the program's administration.
As added by P.L.145-2006, SEC.271.
IC 31-25-4-11
State case registry; contents
Sec. 11. (a) The bureau shall maintain the state case registry
required under 42 U.S.C. 654A(e).
(b) The state case registry must contain the following:
(1) Records of each case in which the bureau provides services.
(2) Each child support order established or modified after
September 30, 1998.
(c) To carry out the bureau's responsibilities under this section,
each circuit court clerk shall enter into an agreement with the bureau
to provide all information necessary for the registry.
As added by P.L.145-2006, SEC.271.
IC 31-25-4-12
Federal courts; contact
Sec. 12. The bureau shall make all contact with the federal courts
necessary under federal law and guidelines.
As added by P.L.145-2006, SEC.271.
IC 31-25-4-13
Repealed
(Repealed by P.L.1-2007, SEC.248.)
IC 31-25-4-13.1
Agreements with local government officials; contracting;
attorney-client relationship; informing applicant; service level
stipulation
Sec. 13.1. (a) This section applies after December 31, 2006.
(b) The bureau shall make the agreements necessary for the
effective administration of the plan with local governmental officials
within Indiana. The bureau shall contract with:
(1) a prosecuting attorney;
(2) a private attorney or private entity if the bureau determines
that a reasonable contract cannot be entered into with a
prosecuting attorney and the determination is approved by at
least two-thirds (2/3) of the Indiana child custody and support
advisory committee (established by IC 33-24-11-1); or
(3) a collection agency licensed under IC 25-11 to collect
arrearages on child support orders under which collections have
not been made on arrearages for at least two (2) years;
in each judicial circuit to undertake activities required to be
performed under Title IV-D of the federal Social Security Act (42
U.S.C. 651), including establishment of paternity, establishment,
enforcement, and modification of child support orders, activities
under the Uniform Reciprocal Enforcement of Support Act (IC
31-2-1, before its repeal) or the Uniform Interstate Family Support
Act (IC 31-18, or IC 31-1.5 before its repeal), and if the contract is
with a prosecuting attorney, prosecutions of welfare fraud.
(c) The hiring of a private attorney or private entity by an
agreement or a contract made under this section is not subject to the
approval of the attorney general under IC 4-6-5-3. An agreement or
a contract made under this section is not subject to IC 4-13-2-14.3 or
IC 5-22.
(d) Subject to section 14.1 of this chapter, a prosecuting attorney
with which the bureau contracts under subsection (b):
(1) may contract with a collection agency licensed under
IC 25-11 to provide child support enforcement services; and
(2) shall contract with a collection agency licensed under
IC 25-11 to collect arrearages on child support orders under
which collections have not been made on arrearages for at least
two (2) years.
(e) A prosecuting attorney or private attorney entering into an
agreement or a contract with the bureau under this section enters into
an attorney-client relationship with the state to represent the interests
of the state in the effective administration of the plan and not the
interests of any other person. An attorney-client relationship is not
created with any other person by reason of an agreement or contract
with the bureau.
(f) At the time that an application for child support services is
made, the applicant must be informed that:
(1) an attorney who provides services for the child support
bureau is the attorney for the state and is not providing legal
representation to the applicant; and
(2) communications made by the applicant to the attorney and
the advice given by the attorney to the applicant are not
confidential communications protected by the privilege
provided under IC 34-46-3-1.
(g) A prosecuting attorney or private attorney who contracts or
agrees under this section to undertake activities required to be
performed under Title IV-D is not required to mediate, resolve, or
litigate a dispute between the parties relating to the amount of
parenting time or parenting time credit.
(h) An agreement made under subsection (b) must contain
requirements stipulating service levels a prosecuting attorney or
private entity is expected to meet. The bureau shall disburse
incentive money based on whether a prosecuting attorney or private
entity meets service levels stipulated in an agreement made under
subsection (b).
As added by P.L.146-2006, SEC.20.
IC 31-25-4-14
Repealed
(Repealed by P.L.1-2007, SEC.248.)
IC 31-25-4-14.1
Program to contract with collection agency; duties; contract
requirements; costs
Sec. 14.1. (a) This section applies after December 31, 2006.
(b) The bureau shall establish a program to allow a prosecuting
attorney with which the bureau has contracted under section 13.1 of
this chapter to contract with a collection agency licensed under
IC 25-11 to provide child support enforcement services.
(c) The bureau shall:
(1) establish a list of approved collection agencies with which
a prosecuting attorney may contract under this section;
(2) establish requirements for participation in the program
established under this section to assure:
(A) effective administration of the plan; and
(B) compliance with all federal and state statutes,
regulations, and rules;
(3) update and review the list described in subdivision (1) and
forward a copy of the updated list to each prosecuting attorney
annually; and
(4) preapprove or approve all contracts between a collection
agency and a prosecuting attorney.
(d) A contract between a prosecuting attorney and a collection
agency under this section must include the following provisions:
(1) A provision that records of a contractor operated child
support enforcement system are subject to inspection and
copying to the same extent the records would be subject to
inspection and copying if the contractor were a public agency
under IC 5-14-3.
(2) A provision that records that are provided by a contractor to
the prosecuting attorney that relate to compliance by the
contractor with the terms of the contract are subject to
inspection and copying in accordance with IC 5-14-3.
(e) The bureau is not liable for any costs related to a contract
entered into under this section that are disallowed for reimbursement
by the federal government under the Title IV-D program of the
federal Social Security Act.
(f) The bureau shall treat costs incurred by a prosecuting attorney
under this section as administrative costs of the prosecuting attorney.
(g) Contracts between a collection agency licensed under IC 25-11
and the bureau or a prosecuting attorney:
(1) must:
(A) be in writing;
(B) include:
(i) all fees, charges, and costs, including administrative
and application fees; and
(ii) the right of the bureau or the prosecuting attorney to
cancel the contract at any time;
(C) require the collection agency, upon the request of the
bureau or the prosecuting attorney, to provide the:
(i) source of each payment received for arrearage on a
child support order;
(ii) form of each payment received for arrearage on a child
support order;
(iii) amount and percentage that is deducted as a fee or a
charge from each payment of arrearage on a child support
order; and
(iv) amount of arrearage owed under a child support order;
and
(D) be one (1) year renewable contracts; and
(2) may be negotiable contingency contracts in which a
collection agency may not collect a fee that exceeds fifteen
percent (15%) of the arrearages collected per case.
(h) A collection agency that contracts with the bureau or a
prosecuting attorney under this section may, in addition to the
collection of arrearages on a child support order, assess and collect
from an obligor all fees, charges, costs, and other expenses as
provided under the terms of the contract described in subsection (g).
As added by P.L.146-2006, SEC.22.
IC 31-25-4-15
Court assistants; appointment; agreements for services; standards
Sec. 15. (a) The judge of a court having jurisdiction over actions
arising under Title IV-D of the Social Security Act (42 U.S.C. 651)
shall, when necessary to satisfy the federal requirement of expedited
process for obtaining and enforcing support orders (42 U.S.C.
666(a)(2); 42 CFR 303.101), appoint assistants who meet the
standards established by the judicial conference of Indiana under
subsection (d), including:
(1) court commissioners;
(2) hearing examiners;
(3) masters; and
(4) referees;
to make findings of fact and recommendations for the judge's
approval in actions arising under Title IV-D of the Social Security
Act (42 U.S.C. 651 et seq.).
(b) If appointment of a court assistant is required under subsection
(a), the bureau shall enter into an agreement with the courts for
services associated with cases arising under Title IV-D of the Social
Security Act that are performed by:
(1) a court assistant appointed under subsection (a); and
(2) administrative and supportive personnel to the court
assistant, including the following:
(A) A bailiff.
(B) A stenographer.
(C) A court reporter.
(c) The agreements entered into under subsection (b) are not
subject to approval by the attorney general under IC 4-13-2-14.3.
(d) The judicial conference of Indiana shall establish educational
and occupational standards for an individual to be employed as an
assistant under subsection (a).
As added by P.L.145-2006, SEC.271.
IC 31-25-4-16
Contracts with nongovernmental providers
Sec. 16. The bureau may contract for services from
nongovernmental providers under the guidelines established for all
state agency contracts.
As added by P.L.145-2006, SEC.271.
IC 31-25-4-17
Support related duties of bureau
Sec. 17. (a) The bureau shall do the following:
(1) Collect support payments when the payments have been
assigned to the state by the application for assistance under
Title IV-A.
(2) Assist in obtaining a support order, including an order for
health insurance coverage under:
(A) IC 27-8-23;
(B) IC 31-14-11-3; or
(C) IC 31-16-6-4;
when there is no existing order and assistance is sought.
(3) Assist mothers of children born out of wedlock in
establishing paternity and obtaining a support order, including
an order for health insurance coverage under IC 27-8-23, when
the mother has applied for assistance.
(4) Implement income withholding in any Title IV-D case:
(A) with an arrearage; and
(B) without an order issued by a court or an administrative
agency.
(5) Enforce intrastate and interstate support orders using high
volume automated enforcement features.
(6) Use a simplified procedure for the review and adjustment of
support orders as set forth in 42 U.S.C. 666(a)(10).
(7) In any Title IV-D case, petition:
(A) a court to:
(i) establish paternity for a child born out of wedlock; and
(ii) establish a support order, including an order for health
insurance coverage under IC 27-8-23, IC 31-14-11-3, or
IC 31-16-6-4; and
(B) a court to establish or modify a support order, including
an order for health insurance coverage under IC 27-8-23,
IC 31-14-11-3, or IC 31-16-6-4, if:
(i) there is no existing support order; or
(ii) the existing order does not include a provision for
private health insurance.
(b) Whenever the bureau collects support payments on behalf of
an individual who is no longer a member of a household that receives
Title IV-A cash payments, the collected support payments (except
collections made through a federal tax refund offset) shall be
promptly distributed in the following order:
(1) Payment to the recipient of the court ordered support
obligation for the month that the support payment is received.
(2) Payment to the recipient of the support payment arrearages
that have accrued during any period when the recipient was not
a member of a household receiving Title IV-A assistance.
(3) Payment to the state in an amount not to exceed the lesser
of:
(A) the total amount of past public assistance paid to the
recipient's family; or
(B) the amount assigned to the state by the recipient under
IC 12-14-7-1.
(4) Payment of support payment arrearages owed to the
recipient.
(5) Payment of any other support payments payable to the
recipient.
(c) Whenever the bureau receives a payment through a federal tax
refund offset on behalf of an individual who has received or is
receiving Title IV-A assistance, the child support payment shall be
distributed as follows:
(1) To the state, an amount not to exceed the lesser of:
(A) the total amount of past public assistance paid to the
individual's family; or
(B) the amount assigned to the state by the individual under
IC 12-14-7-1.
(2) To the individual, any amounts remaining after the
distribution under subdivision (1).
(d) Except as provided in section 19.5 of this chapter, whenever
the bureau collects a child support payment from any source on
behalf of an individual who has never received Title IV-A assistance,
the bureau shall forward all money collected to the individual.
(e) Whenever the bureau receives a child support payment on
behalf of an individual who currently receives a Title IV-A cash
payment or an individual whose cash payment was recouped, the
child support payment shall be distributed as follows:
(1) To the state, an amount not to exceed the lesser of:
(A) the total amount of past public assistance paid to the
individual's family; or
(B) the amount assigned to the state by the individual under
IC 12-14-7-1.
(2) To the individual, any amounts remaining after the
distribution under subdivision (1).
(f) Unless otherwise required by federal law, not more than
seventy-five (75) days after a written request by a recipient, the
bureau shall provide an accounting report to the recipient that
identifies the bureau's claim to a child support payment or arrearage.
(g) The bureau, the department of child services, and the
department of state revenue may not charge a custodial parent a fee
to seek or receive a payment through a federal tax refund offset as
described in subsection (c).
As added by P.L.145-2006, SEC.271. Amended by P.L.103-2007,
SEC.45; P.L.80-2010, SEC.49.
IC 31-25-4-18
Order for genetic testing to establish paternity; income
withholding
Sec. 18. (a) Under 42 U.S.C. 666, the bureau has the authority,
without a court order, to order genetic testing to establish paternity.
(b) The bureau may not order genetic testing as provided under
this section without a request from a local child support attorney
where an order for child support is entered.
(c) The bureau shall recognize and enforce the authority of a state
agency from another state to take any action as required under 42
U.S.C. 666(c).
(d) The bureau shall notify the appropriate circuit court clerk in
any case where an action of the bureau results in income withholding
or a change of payee of a child support order in a Title IV-D case.
(e) In accordance with 42 U.S.C. 654B(a)(3), the bureau shall
provide a single address to which income withholding payments may
be sent.
As added by P.L.145-2006, SEC.271.
IC 31-25-4-19
Services for other than TANF recipients or applicants; application;
fees
Sec. 19. All services provided under section 17 of this chapter and
IC 31-25-3-2 must be available to individuals (other than recipients
or applicants for the federal Temporary Assistance for Needy
Families (TANF) program (45 CFR 265)) upon application for the
services when accompanied by the payment of an application fee as
set by the Title IV-D agency. Fees other than the application fee must
be imposed in accord with federal law governing this program.
As added by P.L.145-2006, SEC.271.
IC 31-25-4-19.5
Title IV-D agency collection fee
Sec. 19.5. (a) If a Title IV-D agency collects at least five hundred
dollars ($500) of child support payments on behalf of an individual
who has never received Title IV-A assistance, the Title IV-D agency
shall collect a fee in accordance with 42 U.S.C. 654(6). The Title
IV-D agency may collect the fee by issuance and implementation of
an income withholding order.
(b) The Title IV-D agency shall collect the fee described in
subsection (a) from one (1) of the following:
(1) Any amount of child support payments that exceeds five
hundred dollars ($500) collected on behalf of the individual
who applied for the services of collecting the child support
payments.
(2) The parent who owes the child support obligation being
enforced by the Title IV-D agency.
(3) State funds appropriated for the purpose of paying a fee
under subsection (a).
As added by P.L.103-2007, SEC.46.
IC 31-25-4-20
Authority to receive federal funds and distribute money collected
Sec. 20. The bureau may receive the federal money available for
the administration of Title IV-D of the federal Social Security Act
and shall distribute money collected in accordance with federal
regulations.
As added by P.L.145-2006, SEC.271.
IC 31-25-4-21
Confidential information; safeguards; necessary disclosures
Sec. 21. (a) The bureau shall observe all possible safeguards for
information obtained by the bureau with the minimum standard for
the safeguards to be the federal regulations governing the
safeguarding of information under this program.
(b) The bureau or the prosecuting attorney may not disclose
information obtained through the parent locator service, except to the
extent necessary to fulfill a duty under this chapter.
As added by P.L.145-2006, SEC.271.
IC 31-25-4-22
Disclosure of information to consumer reporting agencies;
procedures
Sec. 22. The bureau shall establish procedures for providing
information to a consumer reporting agency (as defined by the
federal Fair Credit Reporting Act (15 U.S.C. 1681a(f))) concerning
the amount of overdue support owed by a parent. Information
provided under this section must be provided in accordance with
federal statutes and regulations governing the Title IV-D program
(42 U.S.C. 651).
As added by P.L.145-2006, SEC.271.
IC 31-25-4-23
Title IV-D agency; incentive payments; distribution from county
treasury
Sec. 23. (a) Subject to subsection (d), the Title IV-D agency shall
provide incentive payments to counties for enforcing and collecting
the support rights that have been assigned to the state. The incentive
payments shall be made by the Title IV-D agency directly to the
county and deposited in the county treasury for distribution on a
quarterly basis and in the following manner:
(1) Twenty-two and two-tenths percent (22.2%) of the incentive
payments shall be distributed to the county general fund.
(2) Thirty-three and four-tenths percent (33.4%) of the incentive
payments shall be distributed to the operating budget of the
prosecuting attorney.
(3) Twenty-two and two-tenths percent (22.2%) of the incentive
payments shall be distributed to the operating budget of the
circuit court clerk.
(b) Notwithstanding IC 36-2-5-2(b), distribution from the county
treasury under subsection (a) shall be made without the necessity of
first obtaining an appropriation from the county fiscal body.
(c) The amount that a county receives and the terms under which
the incentive payment is paid must be in accordance with relevant
federal statutes and the federal regulations promulgated under the
statutes. However, amounts received as incentive payments may not,
without the approval of the county fiscal body, be used to increase or
supplement the salary of an elected official. The amounts received as
incentive payments must be used to supplement, rather than take the
place of, other funds used for Title IV-D program activities.
(d) The Title IV-D agency shall retain twenty-two and two-tenths
percent (22.2%) of the incentive payments described in subsection
(a).
As added by P.L.145-2006, SEC.271. Amended by P.L.146-2006,
SEC.23; P.L.1-2007, SEC.198.
IC 31-25-4-24
Duties of circuit court clerk; support money; cash payments
Sec. 24. (a) Each circuit court clerk shall do the following:
(1) Before January 1, 2007, receive support money assigned to
the state and paid under the terms of a court order in the clerk's
jurisdiction and pay the money to the Title IV-D agency within
the time limits established by P.L.93-647, as amended, and any
related regulations that are promulgated.
(2) Maintain all records concerning the payment or nonpayment
of support money that have been assigned to the state and
transmit the records to the Title IV-D agency upon request.
(3) Contract with the Title IV-D agency for the performance
and the remuneration for the performance of duties prescribed
in this section.
(b) Beginning January 1, 2007, for purposes of subsection (a)(1),
each circuit court clerk may accept only support money that is paid
in cash.
As added by P.L.145-2006, SEC.271. Amended by P.L.146-2006,
SEC.24; P.L.1-2007, SEC.199.
IC 31-25-4-25
Amounts distributed from department of child services
Sec. 25. The amounts appropriated for duties performed by
prosecuting attorneys, circuit court clerks, or other agents under this
chapter shall be distributed directly from the department of child
services.
As added by P.L.145-2006, SEC.271. Amended by P.L.146-2006,
SEC.25; P.L.1-2007, SEC.200.
IC 31-25-4-26
Appeal right of aggrieved TANF recipient; issue limitation;
corrective action on erroneous records
Sec. 26. (a) A recipient of the federal Temporary Assistance for
Needy Families (TANF) program (45 CFR 265) who is aggrieved by
the action of the Title IV-D agency in paying or not paying money to
the recipient out of the support money collected by the agency under
an assignment to Indiana may appeal the action to the Title IV-D
agency. The appeal may not be used to redetermine eligibility for
assistance, but must be limited to the issue as to whether upon the
records before the Title IV-D agency proper distribution was made
out of the support money collected.
(b) If, as a result of the appeal, the Title IV-D agency has
reasonable cause to believe that the records in the agency's
possession concerning the appellant are in error, the Title IV-D
agency shall notify the agency supplying the records of possible
errors and request corrective action.
(c) The appeal hearing must be held in accordance with the rules
of the department.
As added by P.L.145-2006, SEC.271.
IC 31-25-4-27
Rules implementing Title IV-D
Sec. 27. The director of the department shall adopt rules necessary
to implement Title IV-D of the federal Social Security Act and this
chapter. The department shall send a copy of each proposed or
adopted rule to each member of the Indiana child custody and
support advisory committee established by IC 33-24-11-1 not later
than ten (10) days after proposal or adoption.
As added by P.L.145-2006, SEC.271.
IC 31-25-4-28
Appropriation
Sec. 28. A sufficient amount must be appropriated annually out of
the state general fund for the administration of this chapter.
As added by P.L.145-2006, SEC.271.
IC 31-25-4-29
Child support enforcement revolving funds
Sec. 29. (a) The bureau may, with the consent of the budget
agency, establish child support enforcement revolving funds for the
deposit of a part of the child support money collected by the bureau
under this chapter.
(b) The amount of money to be deposited in a revolving fund
established under this section shall be determined by the budget
director. The budget agency shall annually review each revolving
fund for the purpose of determining whether the fund's current level
is adequate for the purpose of making disbursements described in
subsection (c) and shall report to the budget director
recommendations regarding changes in the amount of the fund. The
budget director may authorize an increase or a decrease in the fund.
(c) Disbursements from a revolving fund established under this
section may be made only to the bureau as follows:
(1) For payment of expenses incurred by the division in the
collection of child support under this chapter.
(2) To enable the bureau to participate in child support
collection projects offered by other units of government or the
private sector.
(d) The bureau shall do the following:
(1) Request the budget agency to allocate, as needed, money
from the revolving fund for the purposes described in
subsection (c).
(2) Keep complete financial records of all transactions.
(3) Prepare, before the beginning of each fiscal year, an annual
budget of proposed expenditures from the revolving funds.
(e) The bureau shall submit an annual budget to the budget agency
for approval under subsection (d), and an expenditure in excess of
the approved budget may not be made without the approval of the
budget agency.
(f) Money in a revolving fund established under this section does
not revert to any other fund at the end of a state fiscal year.
(g) The treasurer of state may invest the money in a revolving
fund established under this section in the manner provided by law for
investing money in the state general fund.
As added by P.L.145-2006, SEC.271.
IC 31-25-4-30
Child support obligation lien list; motor vehicle liens
Sec. 30. (a) The bureau shall, each month, prepare a list of each
person against whom a child support obligation lien is held under
IC 31-16-16-3 (or IC 31-2-11-9 before its repeal). The list must
identify each person liable for a lien by name, address, amount of
lien, and either Social Security number or employer identification
number. The bureau shall certify a copy of the list to the bureau of
motor vehicles.
(b) The bureau of motor vehicles shall, before issuing the title to
a motor vehicle under IC 9-17, determine whether the purchaser's or
assignee's name is on the most recent monthly lien list. If the
purchaser's or assignee's name is on the list, the bureau shall enter as
a lien on the title the name of the state as the lienholder. The state's
lien on a title under this section is subordinate to a prior perfected
security interest if the interest is defined and perfected under any of
the following:
(1) IC 26-1-9.1.
(2) IC 32-8 (before its repeal).
(3) IC 32-28.
(4) IC 32-29.
(5) IC 32-33.
(6) IC 32-34-10.
(c) A lien against the title under this section must be treated in the
same manner as any other subordinate title lien.
(d) The bureau shall prescribe and furnish release forms for use
by the bureau. When the amount of the lien is paid, the bureau shall
issue to the person against whom the lien was held a release stating
that the amount represented by the lien has been paid. The bureau
may also issue a release to a person against whom the lien is held if
the person has made arrangements, agreed to by the bureau, for the
payment of the amount represented by the lien.
(e) The director of the bureau or the director's designee is the
custodian of all titles having the state as the sole lienholder under
this section. Upon receiving a title from the bureau of motor vehicles
under this section, the director shall notify the owner of the motor
vehicle.
(f) The bureau shall reimburse the bureau of motor vehicles for all
costs incurred by the bureau in implementing this section.
As added by P.L.145-2006, SEC.271.
IC 31-25-4-31
Data match system with financial institutions to block account with
child support lien
Sec. 31. (a) The bureau shall operate a data match system with
each financial institution doing business in Indiana.
(b) Each financial institution doing business in Indiana shall
provide information to the bureau on all noncustodial parents who:
(1) hold one (1) or more accounts with the financial institution;
and
(2) are delinquent.
(c) In order to provide the information required under subsection
(b), a financial institution shall either:
(1) identify noncustodial parents by comparing records
maintained by the financial institution with records provided by
the bureau by:
(A) name; and
(B) either Social Security number or tax identification
number; or
(2) submit to the bureau a report, in a form satisfactory to the
bureau, that includes the Social Security number or tax
identification number of each individual maintaining an account
at the financial institution. The reports submitted under this
subdivision must be accessible to:
(A) the department of state revenue established by
IC 6-8.1-2-1 or its agents for use only in tax judgment and
levy administration described in IC 6-8.1-8-8.7(b)(2); or
(B) the department of workforce development established by
IC 22-4.1-2-1 or its agents for use only in the collection of
unpaid final assessments described in IC 22-4-29-14(b)(2).
(d) The information required under subsection (b) must:
(1) be provided on a quarterly basis; and
(2) include the:
(A) name;
(B) address of record; and
(C) either the Social Security number or tax identification
number;
of an individual identified under subsection (b).
(e) When the bureau has determined that the information required
under subsection (d)(2) is identical for an individual who holds an
account with a financial institution and an individual whose name
appears on the quarterly list prepared by the bureau under section 30
of this chapter, the bureau shall provide a notice of the match if
action is to be initiated to block or encumber the account by
establishing a lien for child support payment to the:
(1) individual; and
(2) financial institution holding the account.
(f) The notice under section (e) must inform the individual that:
(1) the individual's account in a financial institution is subject
to a child support lien; and
(2) the individual may file an appeal with the bureau within
twenty (20) days after the date the notice was issued.
(g) The bureau shall hold a hearing under 470 IAC 1-4. The
department's final action following a hearing held under this
subsection is subject to judicial review as provided in 470 IAC 1-4.
(h) The state's lien on assets under this section is subordinate to
any prior lien perfected by:
(1) a financial institution; or
(2) another legitimate lien holder.
(i) A lien issued under this section remains in effect until the
earliest of:
(1) one hundred twenty (120) days after issuance;
(2) the date the asset on which the lien is issued is surrendered;
or
(3) the date the lien is released by an action of the bureau.
(j) This section does not preclude a financial institution from
exercising its right to:
(1) charge back or recoup a deposit to an account; or
(2) set off from an account held by the financial institution in
which the noncustodial parent has an interest in any debts owed
to the financial institution that existed before:
(A) the state's lien; and
(B) notification to the financial institution of the child
support delinquency.
(k) A financial institution ordered to block or encumber an
account under this section is entitled to collect its normally
scheduled account activity fees to maintain the account during the
period the account is blocked or encumbered.
(l) All information provided by a financial institution under this
section is confidential and is available only to the bureau or its
agents for use only in child support enforcement activities.
(m) A financial institution providing information required under
this section is not liable for:
(1) disclosing the required information to the bureau, the
department of state revenue established by IC 6-8.1-2-1, or the
department of workforce development established by
IC 22-4.1-2-1;
(2) blocking or surrendering any of an individual's assets in
response to a lien imposed by:
(A) the bureau under this section; or
(B) a person or entity acting on behalf of the bureau; or
(3) any other action taken in good faith to comply with this
section.
(n) The department shall pay a financial institution performing the
data match required by this section a reasonable fee for providing the
service that does not exceed the actual cost incurred by the financial
institution.
(o) This section does not prevent the bureau or its agents from
encumbering an obligor's account with a financial institution by any
other remedy available for the enforcement of a child support order.
As added by P.L.145-2006, SEC.271. Amended by P.L.103-2007,
SEC.47; P.L.138-2008, SEC.7.
IC 31-25-4-32
Finding obligor delinquent; notice; order to suspend driving
privileges; licenses and permits; sanctions
Sec. 32. (a) When the Title IV-D agency finds that an obligor is
delinquent, the Title IV-D agency shall send, to a verified address, a
notice to the obligor that does the following:
(1) Specifies that the obligor is delinquent.
(2) Describes the amount of child support that the obligor is in
arrears.
(3) States that unless the obligor:
(A) pays the obligor's child support arrearage in full;
(B) establishes a payment plan with the Title IV-D agency to
pay the arrearage, which includes an income withholding
order; or
(C) requests a hearing under section 33 of this chapter;
within twenty (20) days after the date the notice is mailed, the
Title IV-D agency shall issue an order to the bureau of motor
vehicles stating that the obligor is delinquent and that the
obligor's driving privileges shall be suspended.
(4) Explains that the obligor has twenty (20) days after the
notice is mailed to do one (1) of the following:
(A) Pay the obligor's child support arrearage in full.
(B) Establish a payment plan with the Title IV-D agency to
pay the arrearage, which includes an income withholding
order under IC 31-16-15-2 or IC 31-16-15-2.5.
(C) Request a hearing under section 33 of this chapter.
(5) Explains that if the obligor has not satisfied any of the
requirements of subdivision (4) within twenty (20) days after
the notice is mailed, that the Title IV-D agency shall issue a
notice to:
(A) the board or department that regulates the obligor's
profession or occupation, if any, that the obligor is
delinquent and that the obligor may be subject to sanctions
under IC 25-1-1.2, including suspension or revocation of the
obligor's professional or occupational license;
(B) the supreme court disciplinary commission if the obligor
is licensed to practice law;
(C) the department of education established by IC 20-19-3-1
if the obligor is a licensed teacher;
(D) the Indiana horse racing commission if the obligor holds
or applies for a license issued under IC 4-31-6;
(E) the Indiana gaming commission if the obligor holds or
applies for a license issued under IC 4-33 and IC 4-35;
(F) the commissioner of the department of insurance if the
obligor holds or is an applicant for a license issued under
IC 27-1-15.6, IC 27-1-15.8, or IC 27-10-3;
(G) the director of the department of natural resources if the
obligor holds or is an applicant for a license issued by the
department of natural resources under:
(i) IC 14-22-12 (fishing, hunting, and trapping licenses);
(ii) IC 14-22-14 (Lake Michigan commercial fishing
license);
(iii) IC 14-22-16 (bait dealer's license);
(iv) IC 14-22-17 (mussel license);
(v) IC 14-22-19 (fur buyer's license);
(vi) IC 14-24-7 (nursery dealer's license); or
(vii) IC 14-31-3 (ginseng dealer's license); or
(H) the alcohol and tobacco commission if the obligor holds
or applies for an employee's permit under
IC 7.1-3-18-9(a)(3).
(6) Explains that the only basis for contesting the issuance of an
order under subdivision (3) or (5) is a mistake of fact.
(7) Explains that an obligor may contest the Title IV-D agency's
determination to issue an order under subdivision (3) or (5) by
making written application to the Title IV-D agency within
twenty (20) days after the date the notice is mailed.
(8) Explains the procedures to:
(A) pay the obligor's child support arrearage in full; and
(B) establish a payment plan with the Title IV-D agency to
pay the arrearage, which must include an income
withholding order under IC 31-16-15-2 or IC 31-16-15-2.5.
(b) Whenever the Title IV-D agency finds that an obligor is
delinquent and has failed to:
(1) pay the obligor's child support arrearage in full;
(2) establish a payment plan with the Title IV-D agency to pay
the arrearage, which includes an income withholding order
under IC 31-16-15-2 or IC 31-16-15-2.5; or
(3) request a hearing under section 33 of this chapter within
twenty (20) days after the date the notice described in
subsection (a) is mailed;
the Title IV-D agency shall issue an order to the bureau of motor
vehicles stating that the obligor is delinquent.
(c) An order issued under subsection (b) must require the
following:
(1) If the obligor who is the subject of the order holds a driving
license or permit on the date the order is issued, that the driving
privileges of the obligor be suspended until further order of the
Title IV-D agency.
(2) If the obligor who is the subject of the order does not hold
a driving license or permit on the date the order is issued, that
the bureau of motor vehicles may not issue a driving license or
permit to the obligor until the bureau of motor vehicles receives
a further order from the Title IV-D agency.
(d) The Title IV-D agency shall provide the:
(1) full name;
(2) date of birth;
(3) verified address; and
(4) Social Security number or driving license number;
of the obligor to the bureau of motor vehicles.
(e) Whenever the Title IV-D agency finds that an obligor who is
an applicant (as defined in IC 25-1-1.2-1) or a practitioner (as
defined in IC 25-1-1.2-6) is delinquent and the applicant or
practitioner has failed to:
(1) pay the obligor's child support arrearage in full;
(2) establish a payment plan with the Title IV-D agency to pay
the arrearage, which includes an income withholding order
under IC 31-16-15-2 or IC 31-16-15-2.5; or
(3) request a hearing under section 33 of this chapter;
the Title IV-D agency shall issue an order to the board regulating the
practice of the obligor's profession or occupation stating that the
obligor is delinquent.
(f) An order issued under subsection (e) must direct the board or
department regulating the obligor's profession or occupation to
impose the appropriate sanctions described under IC 25-1-1.2.
(g) Whenever the Title IV-D agency finds that an obligor who is
an attorney or a licensed teacher is delinquent and the attorney or
licensed teacher has failed to:
(1) pay the obligor's child support arrearage in full;
(2) establish a payment plan with the Title IV-D agency to pay
the arrearage, which includes an income withholding order
under IC 31-16-15-2 or IC 31-16-15-2.5; or
(3) request a hearing under section 33 of this chapter;
the Title IV-D agency shall notify the supreme court disciplinary
commission if the obligor is an attorney, or the department of
education if the obligor is a licensed teacher, that the obligor is
delinquent.
(h) Whenever the Title IV-D agency finds that an obligor who
holds a license issued under IC 4-31-6, IC 4-33, or IC 4-35 has failed
to:
(1) pay the obligor's child support arrearage in full;
(2) establish a payment plan with the Title IV-D agency to pay
the arrearage, which includes an income withholding order
under IC 31-16-15-2 or IC 31-16-15-2.5; or
(3) request a hearing under section 33 of this chapter;
the Title IV-D agency shall issue an order to the Indiana horse racing
commission if the obligor holds a license issued under IC 4-31-6, or
to the Indiana gaming commission if the obligor holds a license
issued under IC 4-33 or IC 4-35, stating that the obligor is delinquent
and directing the commission to impose the appropriate sanctions
described in IC 4-31-6-11, IC 4-33-8.5-3, or IC 4-35-6.7-2.
(i) Whenever the Title IV-D agency finds that an obligor who
holds a license issued under IC 27-1-15.6, IC 27-1-15.8, or
IC 27-10-3 has failed to:
(1) pay the obligor's child support arrearage in full;
(2) establish a payment plan with the Title IV-D agency to pay
the arrearage, which includes an income withholding order
under IC 31-16-15-2 or IC 31-16-15-2.5; or
(3) request a hearing under section 33 of this chapter;
the Title IV-D agency shall issue an order to the commissioner of the
department of insurance stating that the obligor is delinquent and
directing the commissioner to impose the appropriate sanctions
described in IC 27-1-15.6-29 or IC 27-10-3-20.
(j) Whenever the Title IV-D agency finds that an obligor who
holds a license issued by the department of natural resources under
IC 14-22-12, IC 14-22-14, IC 14-22-16, IC 14-22-17, IC 14-22-19,
IC 14-24-7, or IC 14-31-3 has failed to:
(1) pay the obligor's child support arrearage in full;
(2) establish a payment plan with the Title IV-D agency to pay
the arrearage, which includes an income withholding order
under IC 31-16-15-2 or IC 31-16-15-2.5; or
(3) request a hearing under section 33 of this chapter;
the Title IV-D agency shall issue an order to the director of the
department of natural resources stating that the obligor is delinquent
and directing the director to suspend or revoke a license issued to the
obligor by the department of natural resources as provided in
IC 14-11-3.
(k) If the Title IV-D agency finds that an obligor who holds an
employee's permit issued under IC 7.1-3-18-9(a)(3) has failed to:
(1) pay the obligor's child support arrearage in full;
(2) establish a payment plan with the Title IV-D agency to pay
the arrearage, which includes an income withholding order
under IC 31-16-15-2 or IC&