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 FederalSocial Security Act
IC 31-25-4-1
"Bureau"
Sec. 1. As used in this chapter, "bureau" refers to the childsupport 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 financialinstitution data match, "account" has the meaning set forth in 42U.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 meaningset forth in 42 U.S.C. 666, and includes the following:
(1) A depository institution, as defined in Section 3(c) of theFederal Deposit Insurance Act (12 U.S.C. 1813(c)).
(2) An institution affiliated party, as defined in Section 3(u) ofthe Federal Deposit Insurance Act (12 U.S.C. 1813(u)).
(3) A federal or state credit union, as defined in Section 101 ofthe Federal Credit Union Act (12 U.S.C. 1752), including aninstitution affiliated party of a credit union (as defined inSection 206(r) of the Act).
(4) A benefit association, insurance company, safe depositcompany, money market mutual fund, or similar entityauthorized 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 whosesupport 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 plandeveloped to implement the provisions of Title IV-D of the federalSocial 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Repealed
(Repealed by P.L.1-2007, SEC.248.)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 theadministration of Title IV-D. The plan must comply with allprovisions of state law and with the federal statutes andregulations governing the program.
(2) Evaluate formally the quality, efficiency, effectiveness, andscope of services provided under the plan developed andapproved by the governor and the United States Department ofHealth and Human Services.
(3) Control financially the operation of the plan.
(4) Coordinate activities relating to and in compliance with therequirements of the state's reciprocal enforcement of supportlaw of cases being pursued under the state plan. The bureaushall make requests to the United States Department of Healthand Human Services Office of Child Support Enforcement foruse of the federal parent locator service, the other states' parentlocator services, the federal district courts, and the InternalRevenue 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 thischapter, 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 owesa child support obligation being enforced by the childsupport bureau and who is eligible for unemploymentcompensation benefits under IC 22-4 to have a specifiedamount withheld from the benefits otherwise payable to theindividual, not to exceed the individual's unemploymentcompensation weekly benefit amount.
(B) Bring legal process to require the withholding ofspecified amounts from the individual's unemploymentcompensation benefits.
(C) Accept an amount specified by the individual to bededucted and withheld by the department of workforce
development.
(2) Notify the department of workforce development of theamounts to be deducted from an individual's unemploymentcompensation as determined under subdivision (1), not toexceed the individual's weekly benefit amount ofunemployment compensation.
(3) Reimburse the department of workforce development for theadministrative costs incurred by the department underIC 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 ofthis chapter, the bureau shall do the following:
(1) Share data regarding obligors who are delinquent with:
(A) a licensed owner, operating agent, and trustee inaccordance with IC 4-33-4-27;
(B) a permit holder and trustee in accordance withIC 4-35-4-16; and
(C) the state lottery commission;
to allow for the interception of cash winnings and prizes fromthe obligors.
(2) Distribute money collected from the persons described insubdivision (1) according to federal child support laws andregulations.
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 federalrequirements imposed by statute and regulation governing theformation 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 thecommunications necessary with the agency that administers TitleIV-A of the federal Social Security Act to ensure proper operation ofthe total program. Prompt notice for action in all cases must be givenbetween the bureau and the agency that administers Title IV-A of theFederal Social Security Act. Cases shall be handled within the timeframe established by the federal statutes and regulations governingthe 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 registryrequired 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 afterSeptember 30, 1998.
(c) To carry out the bureau's responsibilities under this section,each circuit court clerk shall enter into an agreement with the bureauto 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 courtsnecessary 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 levelstipulation
Sec. 13.1. (a) This section applies after December 31, 2006.
(b) The bureau shall make the agreements necessary for theeffective administration of the plan with local governmental officialswithin Indiana. The bureau shall contract with:
(1) a prosecuting attorney;
(2) a private attorney or private entity if the bureau determinesthat a reasonable contract cannot be entered into with aprosecuting attorney and the determination is approved by atleast two-thirds (2/3) of the Indiana child custody and supportadvisory committee (established by IC 33-24-11-1); or
(3) a collection agency licensed under IC 25-11 to collectarrearages on child support orders under which collections havenot been made on arrearages for at least two (2) years;
in each judicial circuit to undertake activities required to beperformed under Title IV-D of the federal Social Security Act (42U.S.C. 651), including establishment of paternity, establishment,enforcement, and modification of child support orders, activitiesunder the Uniform Reciprocal Enforcement of Support Act (IC31-2-1, before its repeal) or the Uniform Interstate Family SupportAct (IC 31-18, or IC 31-1.5 before its repeal), and if the contract iswith a prosecuting attorney, prosecutions of welfare fraud.
(c) The hiring of a private attorney or private entity by anagreement or a contract made under this section is not subject to theapproval of the attorney general under IC 4-6-5-3. An agreement ora 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 attorneywith which the bureau contracts under subsection (b):
(1) may contract with a collection agency licensed underIC 25-11 to provide child support enforcement services; and
(2) shall contract with a collection agency licensed underIC 25-11 to collect arrearages on child support orders underwhich collections have not been made on arrearages for at leasttwo (2) years.
(e) A prosecuting attorney or private attorney entering into anagreement or a contract with the bureau under this section enters intoan attorney-client relationship with the state to represent the interestsof the state in the effective administration of the plan and not theinterests of any other person. An attorney-client relationship is notcreated with any other person by reason of an agreement or contractwith the bureau.
(f) At the time that an application for child support services ismade, the applicant must be informed that:
(1) an attorney who provides services for the child supportbureau is the attorney for the state and is not providing legalrepresentation to the applicant; and
(2) communications made by the applicant to the attorney andthe advice given by the attorney to the applicant are notconfidential communications protected by the privilegeprovided under IC 34-46-3-1.
(g) A prosecuting attorney or private attorney who contracts oragrees under this section to undertake activities required to beperformed under Title IV-D is not required to mediate, resolve, orlitigate a dispute between the parties relating to the amount ofparenting time or parenting time credit.
(h) An agreement made under subsection (b) must containrequirements stipulating service levels a prosecuting attorney orprivate entity is expected to meet. The bureau shall disburseincentive money based on whether a prosecuting attorney or privateentity meets service levels stipulated in an agreement made undersubsection (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; contractrequirements; costs
Sec. 14.1. (a) This section applies after December 31, 2006.
(b) The bureau shall establish a program to allow a prosecutingattorney with which the bureau has contracted under section 13.1 ofthis chapter to contract with a collection agency licensed underIC 25-11 to provide child support enforcement services. (c) The bureau shall:
(1) establish a list of approved collection agencies with whicha prosecuting attorney may contract under this section;
(2) establish requirements for participation in the programestablished 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) andforward a copy of the updated list to each prosecuting attorneyannually; and
(4) preapprove or approve all contracts between a collectionagency and a prosecuting attorney.
(d) A contract between a prosecuting attorney and a collectionagency under this section must include the following provisions:
(1) A provision that records of a contractor operated childsupport enforcement system are subject to inspection andcopying to the same extent the records would be subject toinspection and copying if the contractor were a public agencyunder IC 5-14-3.
(2) A provision that records that are provided by a contractor tothe prosecuting attorney that relate to compliance by thecontractor with the terms of the contract are subject toinspection and copying in accordance with IC 5-14-3.
(e) The bureau is not liable for any costs related to a contractentered into under this section that are disallowed for reimbursementby the federal government under the Title IV-D program of thefederal Social Security Act.
(f) The bureau shall treat costs incurred by a prosecuting attorneyunder this section as administrative costs of the prosecuting attorney.
(g) Contracts between a collection agency licensed under IC 25-11and the bureau or a prosecuting attorney:
(1) must:
(A) be in writing;
(B) include:
(i) all fees, charges, and costs, including administrativeand application fees; and
(ii) the right of the bureau or the prosecuting attorney tocancel the contract at any time;
(C) require the collection agency, upon the request of thebureau or the prosecuting attorney, to provide the:
(i) source of each payment received for arrearage on achild support order;
(ii) form of each payment received for arrearage on a childsupport order;
(iii) amount and percentage that is deducted as a fee or acharge from each payment of arrearage on a child supportorder; 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 acollection agency may not collect a fee that exceeds fifteenpercent (15%) of the arrearages collected per case.
(h) A collection agency that contracts with the bureau or aprosecuting attorney under this section may, in addition to thecollection of arrearages on a child support order, assess and collectfrom an obligor all fees, charges, costs, and other expenses asprovided 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 actionsarising under Title IV-D of the Social Security Act (42 U.S.C. 651)shall, when necessary to satisfy the federal requirement of expeditedprocess for obtaining and enforcing support orders (42 U.S.C.666(a)(2); 42 CFR 303.101), appoint assistants who meet thestandards established by the judicial conference of Indiana undersubsection (d), including:
(1) court commissioners;
(2) hearing examiners;
(3) masters; and
(4) referees;
to make findings of fact and recommendations for the judge'sapproval in actions arising under Title IV-D of the Social SecurityAct (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 forservices associated with cases arising under Title IV-D of the SocialSecurity Act that are performed by:
(1) a court assistant appointed under subsection (a); and
(2) administrative and supportive personnel to the courtassistant, including the following:
(A) A bailiff.
(B) A stenographer.
(C) A court reporter.
(c) The agreements entered into under subsection (b) are notsubject to approval by the attorney general under IC 4-13-2-14.3.
(d) The judicial conference of Indiana shall establish educationaland occupational standards for an individual to be employed as anassistant 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 fromnongovernmental providers under the guidelines established for allstate 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 beenassigned to the state by the application for assistance underTitle IV-A.
(2) Assist in obtaining a support order, including an order forhealth 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 inestablishing paternity and obtaining a support order, includingan order for health insurance coverage under IC 27-8-23, whenthe 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 administrativeagency.
(5) Enforce intrastate and interstate support orders using highvolume automated enforcement features.
(6) Use a simplified procedure for the review and adjustment ofsupport 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 healthinsurance coverage under IC 27-8-23, IC 31-14-11-3, orIC 31-16-6-4; and
(B) a court to establish or modify a support order, includingan 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 forprivate health insurance.
(b) Whenever the bureau collects support payments on behalf ofan individual who is no longer a member of a household that receivesTitle IV-A cash payments, the collected support payments (exceptcollections made through a federal tax refund offset) shall bepromptly distributed in the following order:
(1) Payment to the recipient of the court ordered supportobligation for the month that the support payment is received.
(2) Payment to the recipient of the support payment arrearagesthat have accrued during any period when the recipient was nota member of a household receiving Title IV-A assistance.
(3) Payment to the state in an amount not to exceed the lesserof:
(A) the total amount of past public assistance paid to therecipient's family; or (B) the amount assigned to the state by the recipient underIC 12-14-7-1.
(4) Payment of support payment arrearages owed to therecipient.
(5) Payment of any other support payments payable to therecipient.
(c) Whenever the bureau receives a payment through a federal taxrefund offset on behalf of an individual who has received or isreceiving Title IV-A assistance, the child support payment shall bedistributed as follows:
(1) To the state, an amount not to exceed the lesser of:
(A) the total amount of past public assistance paid to theindividual's family; or
(B) the amount assigned to the state by the individual underIC 12-14-7-1.
(2) To the individual, any amounts remaining after thedistribution under subdivision (1).
(d) Except as provided in section 19.5 of this chapter, wheneverthe bureau collects a child support payment from any source onbehalf 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 onbehalf of an individual who currently receives a Title IV-A cashpayment or an individual whose cash payment was recouped, thechild 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 theindividual's family; or
(B) the amount assigned to the state by the individual underIC 12-14-7-1.
(2) To the individual, any amounts remaining after thedistribution under subdivision (1).
(f) Unless otherwise required by federal law, not more thanseventy-five (75) days after a written request by a recipient, thebureau shall provide an accounting report to the recipient thatidentifies the bureau's claim to a child support payment or arrearage.
(g) The bureau, the department of child services, and thedepartment of state revenue may not charge a custodial parent a feeto seek or receive a payment through a federal tax refund offset asdescribed 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; incomewithholding
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 underthis 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 stateagency from another state to take any action as required under 42U.S.C. 666(c).
(d) The bureau shall notify the appropriate circuit court clerk inany case where an action of the bureau results in income withholdingor 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 shallprovide a single address to which income withholding payments maybe 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 andIC 31-25-3-2 must be available to individuals (other than recipientsor applicants for the federal Temporary Assistance for NeedyFamilies (TANF) program (45 CFR 265)) upon application for theservices when accompanied by the payment of an application fee asset by the Title IV-D agency. Fees other than the application fee mustbe 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 hundreddollars ($500) of child support payments on behalf of an individualwho has never received Title IV-A assistance, the Title IV-D agencyshall collect a fee in accordance with 42 U.S.C. 654(6). The TitleIV-D agency may collect the fee by issuance and implementation ofan income withholding order.
(b) The Title IV-D agency shall collect the fee described insubsection (a) from one (1) of the following:
(1) Any amount of child support payments that exceeds fivehundred dollars ($500) collected on behalf of the individualwho applied for the services of collecting the child supportpayments.
(2) The parent who owes the child support obligation beingenforced by the Title IV-D agency.
(3) State funds appropriated for the purpose of paying a feeunder 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 forthe administration of Title IV-D of the federal Social Security Actand shall distribute money collected in accordance with federalregulations.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 forinformation obtained by the bureau with the minimum standard forthe safeguards to be the federal regulations governing thesafeguarding of information under this program.
(b) The bureau or the prosecuting attorney may not discloseinformation obtained through the parent locator service, except to theextent 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 providinginformation to a consumer reporting agency (as defined by thefederal Fair Credit Reporting Act (15 U.S.C. 1681a(f))) concerningthe amount of overdue support owed by a parent. Informationprovided under this section must be provided in accordance withfederal 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 countytreasury
Sec. 23. (a) Subject to subsection (d), the Title IV-D agency shallprovide incentive payments to counties for enforcing and collectingthe support rights that have been assigned to the state. The incentivepayments shall be made by the Title IV-D agency directly to thecounty and deposited in the county treasury for distribution on aquarterly basis and in the following manner:
(1) Twenty-two and two-tenths percent (22.2%) of the incentivepayments shall be distributed to the county general fund.
(2) Thirty-three and four-tenths percent (33.4%) of the incentivepayments shall be distributed to the operating budget of theprosecuting attorney.
(3) Twenty-two and two-tenths percent (22.2%) of the incentivepayments shall be distributed to the operating budget of thecircuit court clerk.
(b) Notwithstanding IC 36-2-5-2(b), distribution from the countytreasury under subsection (a) shall be made without the necessity offirst obtaining an appropriation from the county fiscal body.
(c) The amount that a county receives and the terms under whichthe incentive payment is paid must be in accordance with relevantfederal statutes and the federal regulations promulgated under thestatutes. 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 asincentive payments must be used to supplement, rather than take theplace of, other funds used for Title IV-D program activities.
(d) The Title IV-D agency shall retain twenty-two and two-tenthspercent (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 tothe state and paid under the terms of a court order in the clerk'sjurisdiction and pay the money to the Title IV-D agency withinthe time limits established by P.L.93-647, as amended, and anyrelated regulations that are promulgated.
(2) Maintain all records concerning the payment or nonpaymentof support money that have been assigned to the state andtransmit the records to the Title IV-D agency upon request.
(3) Contract with the Title IV-D agency for the performanceand the remuneration for the performance of duties prescribedin this section.
(b) Beginning January 1, 2007, for purposes of subsection (a)(1),each circuit court clerk may accept only support money that is paidin 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 byprosecuting attorneys, circuit court clerks, or other agents under thischapter shall be distributed directly from the department of childservices.
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 forNeedy Families (TANF) program (45 CFR 265) who is aggrieved bythe action of the Title IV-D agency in paying or not paying money tothe recipient out of the support money collected by the agency underan assignment to Indiana may appeal the action to the Title IV-Dagency. The appeal may not be used to redetermine eligibility forassistance, but must be limited to the issue as to whether upon therecords before the Title IV-D agency proper distribution was madeout of the support money collected. (b) If, as a result of the appeal, the Title IV-D agency hasreasonable cause to believe that the records in the agency'spossession concerning the appellant are in error, the Title IV-Dagency shall notify the agency supplying the records of possibleerrors and request corrective action.
(c) The appeal hearing must be held in accordance with the rulesof 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 necessaryto implement Title IV-D of the federal Social Security Act and thischapter. The department shall send a copy of each proposed oradopted rule to each member of the Indiana child custody andsupport advisory committee established by IC 33-24-11-1 not laterthan 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 ofthe 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 budgetagency, establish child support enforcement revolving funds for thedeposit of a part of the child support money collected by the bureauunder this chapter.
(b) The amount of money to be deposited in a revolving fundestablished under this section shall be determined by the budgetdirector. The budget agency shall annually review each revolvingfund for the purpose of determining whether the fund's current levelis adequate for the purpose of making disbursements described insubsection (c) and shall report to the budget directorrecommendations regarding changes in the amount of the fund. Thebudget director may authorize an increase or a decrease in the fund.
(c) Disbursements from a revolving fund established under thissection may be made only to the bureau as follows:
(1) For payment of expenses incurred by the division in thecollection of child support under this chapter.
(2) To enable the bureau to participate in child supportcollection projects offered by other units of government or theprivate sector.
(d) The bureau shall do the following:
(1) Request the budget agency to allocate, as needed, moneyfrom the revolving fund for the purposes described insubsection (c). (2) Keep complete financial records of all transactions.
(3) Prepare, before the beginning of each fiscal year, an annualbudget of proposed expenditures from the revolving funds.
(e) The bureau shall submit an annual budget to the budget agencyfor approval under subsection (d), and an expenditure in excess ofthe approved budget may not be made without the approval of thebudget agency.
(f) Money in a revolving fund established under this section doesnot revert to any other fund at the end of a state fiscal year.
(g) The treasurer of state may invest the money in a revolvingfund established under this section in the manner provided by law forinvesting 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 eachperson against whom a child support obligation lien is held underIC 31-16-16-3 (or IC 31-2-11-9 before its repeal). The list mustidentify each person liable for a lien by name, address, amount oflien, and either Social Security number or employer identificationnumber. The bureau shall certify a copy of the list to the bureau ofmotor vehicles.
(b) The bureau of motor vehicles shall, before issuing the title toa motor vehicle under IC 9-17, determine whether the purchaser's orassignee's name is on the most recent monthly lien list. If thepurchaser's or assignee's name is on the list, the bureau shall enter asa lien on the title the name of the state as the lienholder. The state'slien on a title under this section is subordinate to a prior perfectedsecurity interest if the interest is defined and perfected under any ofthe 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 thesame manner as any other subordinate title lien.
(d) The bureau shall prescribe and furnish release forms for useby the bureau. When the amount of the lien is paid, the bureau shallissue to the person against whom the lien was held a release statingthat the amount represented by the lien has been paid. The bureaumay also issue a release to a person against whom the lien is held ifthe person has made arrangements, agreed to by the bureau, for thepayment of the amount represented by the lien.
(e) The director of the bureau or the director's designee is thecustodian of all titles having the state as the sole lienholder underthis section. Upon receiving a title from the bureau of motor vehiclesunder this section, the director shall notify the owner of the motor
vehicle.
(f) The bureau shall reimburse the bureau of motor vehicles for allcosts 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 withchild support lien
Sec. 31. (a) The bureau shall operate a data match system witheach financial institution doing business in Indiana.
(b) Each financial institution doing business in Indiana shallprovide 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 recordsmaintained by the financial institution with records provided bythe bureau by:
(A) name; and
(B) either Social Security number or tax identificationnumber; or
(2) submit to the bureau a report, in a form satisfactory to thebureau, that includes the Social Security number or taxidentification number of each individual maintaining an accountat the financial institution. The reports submitted under thissubdivision must be accessible to:
(A) the department of state revenue established byIC 6-8.1-2-1 or its agents for use only in tax judgment andlevy administration described in IC 6-8.1-8-8.7(b)(2); or
(B) the department of workforce development established byIC 22-4.1-2-1 or its agents for use only in the collection ofunpaid 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 identificationnumber;
of an individual identified under subsection (b).
(e) When the bureau has determined that the information requiredunder subsection (d)(2) is identical for an individual who holds anaccount with a financial institution and an individual whose nameappears on the quarterly list prepared by the bureau under section 30of this chapter, the bureau shall provide a notice of the match ifaction is to be initiated to block or encumber the account byestablishing 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 subjectto a child support lien; and
(2) the individual may file an appeal with the bureau withintwenty (20) days after the date the notice was issued.
(g) The bureau shall hold a hearing under 470 IAC 1-4. Thedepartment's final action following a hearing held under thissubsection is subject to judicial review as provided in 470 IAC 1-4.
(h) The state's lien on assets under this section is subordinate toany 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 theearliest 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 fromexercising 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 inwhich the noncustodial parent has an interest in any debts owedto the financial institution that existed before:
(A) the state's lien; and
(B) notification to the financial institution of the childsupport delinquency.
(k) A financial institution ordered to block or encumber anaccount under this section is entitled to collect its normallyscheduled account activity fees to maintain the account during theperiod the account is blocked or encumbered.
(l) All information provided by a financial institution under thissection is confidential and is available only to the bureau or itsagents for use only in child support enforcement activities.
(m) A financial institution providing information required underthis section is not liable for:
(1) disclosing the required information to the bureau, thedepartment of state revenue established by IC 6-8.1-2-1, or thedepartment of workforce development established byIC 22-4.1-2-1;
(2) blocking or surrendering any of an individual's assets inresponse 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 thissection.
(n) The department shall pay a financial institution performing thedata match required by this section a reasonable fee for providing theservice that does not exceed the actual cost incurred by the financial
institution.
(o) This section does not prevent the bureau or its agents fromencumbering an obligor's account with a financial institution by anyother 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 drivingprivileges; licenses and permits; sanctions
Sec. 32. (a) When the Title IV-D agency finds that an obligor isdelinquent, the Title IV-D agency shall send, to a verified address, anotice 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 inarrears.
(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 topay the arrearage, which includes an income withholdingorder; or
(C) requests a hearing under section 33 of this chapter;
within twenty (20) days after the date the notice is mailed, theTitle IV-D agency shall issue an order to the bureau of motorvehicles stating that the obligor is delinquent and that theobligor's driving privileges shall be suspended.
(4) Explains that the obligor has twenty (20) days after thenotice 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 topay the arrearage, which includes an income withholdingorder 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 therequirements of subdivision (4) within twenty (20) days afterthe notice is mailed, that the Title IV-D agency shall issue anotice to:
(A) the board or department that regulates the obligor'sprofession or occupation, if any, that the obligor isdelinquent and that the obligor may be subject to sanctionsunder IC 25-1-1.2, including suspension or revocation of theobligor's professional or occupational license;
(B) the supreme court disciplinary commission if the obligoris licensed to practice law;
(C) the department of education established by IC 20-19-3-1if the obligor is a licensed teacher;
(D) the Indiana horse racing commission if the obligor holdsor applies for a license issued under IC 4-31-6;
(E) the Indiana gaming commission if the obligor holds orapplies for a license issued under IC 4-33 and IC 4-35; (F) the commissioner of the department of insurance if theobligor holds or is an applicant for a license issued underIC 27-1-15.6, IC 27-1-15.8, or IC 27-10-3;
(G) the director of the department of natural resources if theobligor holds or is an applicant for a license issued by thedepartment of natural resources under:
(i) IC 14-22-12 (fishing, hunting, and trapping licenses);
(ii) IC 14-22-14 (Lake Michigan commercial fishinglicense);
(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 holdsor applies for an employee's permit underIC 7.1-3-18-9(a)(3).
(6) Explains that the only basis for contesting the issuance of anorder under subdivision (3) or (5) is a mistake of fact.
(7) Explains that an obligor may contest the Title IV-D agency'sdetermination to issue an order under subdivision (3) or (5) bymaking written application to the Title IV-D agency withintwenty (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 topay the arrearage, which must include an incomewithholding 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 isdelinquent 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 paythe arrearage, which includes an income withholding orderunder IC 31-16-15-2 or IC 31-16-15-2.5; or
(3) request a hearing under section 33 of this chapter withintwenty (20) days after the date the notice described insubsection (a) is mailed;
the Title IV-D agency shall issue an order to the bureau of motorvehicles stating that the obligor is delinquent.
(c) An order issued under subsection (b) must require thefollowing:
(1) If the obligor who is the subject of the order holds a drivinglicense or permit on the date the order is issued, that the drivingprivileges of the obligor be suspended until further order of theTitle IV-D agency.
(2) If the obligor who is the subject of the order does not holda driving license or permit on the date the order is issued, thatthe bureau of motor vehicles may not issue a driving license orpermit to the obligor until the bureau of motor vehicles receivesa 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 isan applicant (as defined in IC 25-1-1.2-1) or a practitioner (asdefined in IC 25-1-1.2-6) is delinquent and the applicant orpractitioner 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 paythe arrearage, which includes an income withholding orderunder 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 thepractice of the obligor's profession or occupation stating that theobligor is delinquent.
(f) An order issued under subsection (e) must direct the board ordepartment regulating the obligor's profession or occupation toimpose the appropriate sanctions described under IC 25-1-1.2.
(g) Whenever the Title IV-D agency finds that an obligor who isan attorney or a licensed teacher is delinquent and the attorney orlicensed 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 paythe arrearage, which includes an income withholding orderunder 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 disciplinarycommission if the obligor is an attorney, or the department ofeducation if the obligor is a licensed teacher, that the obligor isdelinquent.
(h) Whenever the Title IV-D agency finds that an obligor whoholds a license issued under IC 4-31-6, IC 4-33, or IC 4-35 has failedto:
(1) pay the obligor's child support arrearage in full;
(2) establish a payment plan with the Title IV-D agency to paythe arrearage, which includes an income withholding orderunder 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 racingcommission if the obligor holds a license issued under IC 4-31-6, orto the Indiana gaming commission if the obligor holds a licenseissued under IC 4-33 or IC 4-35, stating that the obligor is delinquentand directing the commission to impose the appropriate sanctionsdescribed 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 whoholds a license issued under IC 27-1-15.6, IC 27-1-15.8, orIC 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 paythe arrearage, which includes an income withholding orderunder 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 thedepartment of insurance stating that the obligor is delinquent anddirecting the commissioner to impose the appropriate sanctionsdescribed in IC 27-1-15.6-29 or IC 27-10-3-20.
(j) Whenever the Title IV-D agency finds that an obligor whoholds a license issued by the department of natural resources underIC 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 paythe arrearage, which includes an income withholding orderunder 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 thedepartment of natural resources stating that the obligor is delinquentand directing the director to suspend or revoke a license issued to theobligor by the department of natural resources as provided inIC 14-11-3.
(k) If the Title IV-D agency finds that an obligor who holds anemployee'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 paythe arrearage, which includes an income withholding orderunder IC 31-16-15-2 or IC&