Citations Affected: IC 31-9; IC 31-14; IC 31-16.
Synopsis: Child support withholding from tax refunds. Provides that
a custodial parent in a non-Title IV-D case may bring an action to
recover delinquent child support by intercepting the child support
obligor's state income tax refund.
Effective: July 1, 2004.
December 4, 2003, read first time and referred to Committee on Judiciary.
January 20, 2004, amended, reported _ Do Pass.
January 26, 2004, read second time, amended, ordered engrossed.
January 27, 2004, engrossed.
January 29, 2004, read third time, passed. Yeas 94, nays 0.
A BILL FOR AN ACT to amend the Indiana Code concerning
family law and juvenile law.
person's eighteenth birthday; or
(ii) has been adjudicated a child in need of services before
the person's eighteenth birthday; or
(3) a person:
(A) who is alleged to have committed an act that would have
been murder if committed by an adult; and
(B) who was less than eighteen (18) years of age at the time of
the alleged act.
(e) "Child", for purposes of the Interstate Compact on Juveniles
under IC 31-37-23-1, has the meaning set forth in IC 31-37-23-1.
(f) "Child", for purposes of IC 31-16-12.5, means an individual
to whom child support is owed under:
(1) a child support order issued under IC 31-14-10 or
IC 31-16-6; or
(2) any other child support order that is enforceable under
IC 31-16-12.5.
following:
(1) The full name of:
(A) the obligor;
(B) the custodial parent; and
(C) each child to whom the obligor owes child support.
(2) An averment that:
(A) the obligor's aggregate child support arrearage on the
date the petition is filed is at least one thousand five
hundred dollars ($1,500); and
(B) the obligor has intentionally violated the terms of the
most recent child support order.
(3) An indication of whether the custodial parent:
(A) has received or is receiving assistance under the Title
IV-A program; or
(B) has assigned child support payments under
IC 12-14-7-1;
during the period of time for which child support is owed by
the obligor.
(c) The court shall notify the child support bureau of the
division of family and children of the pendency of an action under
this chapter if the petition:
(1) indicates under subsection (b)(3)(A) that the custodial
parent has received or is receiving assistance; or
(2) indicates under subsection (b)(3)(B) that an assignment
has occurred.
(d) The state has a right to intervene as a party in a hearing
under this chapter if the custodial parent has received or is
receiving assistance as described in subsection (b)(3)(A) or if an
assignment as described in subsection (b)(3)(B) has occurred.
Sec. 3. A custodial parent may not bring an action under this
chapter with respect to an obligor's state income tax refund for a
calendar year if the child support bureau has initiated an action
under IC 6-8.1-9.5 to set off the obligor's tax refund for that
calendar year.
Sec. 4. (a) A court that receives a petition under section 1 of this
chapter shall send an order requiring the department of state
revenue to determine the obligor's eligibility for a state income tax
refund, whether the obligor filed a joint state income tax return,
and if the obligor filed a joint state income tax return, the name
and address of the individual with whom the obligor filed the joint
state income tax return, if the court preliminarily determines that
probable cause exists to believe that the obligor named in the
petition:
(1) was at least one thousand five hundred dollars ($1,500) in
arrears on child support payments at the time the custodial
parent filed the petition under section 2 of this chapter; and
(2) has intentionally violated the terms of the most recent
support order.
(b) The department of state revenue, upon receiving an order
under subsection (a), shall notify the court whether the obligor
named in the order:
(1) is eligible for a state income tax refund; and
(2) has filed a joint state income tax return, and if the obligor
has filed a joint state income tax return, the name and address
of the individual with whom the obligor filed the joint state
income tax return.
Sec. 5. (a) If the court receives notification under section 4(b) of
this chapter that the obligor is eligible for a state income tax
refund, the court shall set the matter for a hearing at least thirty
(30) days after the date that the court receives notification under
section 4(b) of this chapter.
(b) If the court sets the matter for a hearing under subsection
(a), the court must send notice of the hearing by certified mail,
return receipt requested, to the most recent address of the obligor.
The notice must include the date of the hearing and a copy of the
petition filed under section 2 of this chapter.
(c) If the court receives notification under section 4(b) of this
chapter that the obligor filed a joint state income tax return, the
court shall send a notice to the individual with whom the obligor
filed a joint state income tax return by certified mail, return
receipt requested, and inform the individual:
(1) of the hearing date;
(2) that the court may order the individual's and obligor's
joint state income tax refund to be intercepted for the
obligor's past due child support payments; and
(3) that the individual may petition the court or provide
testimony at the hearing that the individual believes that part
of the individual's and obligor's joint state income tax refund
should not be intercepted for the obligor's child support and
should be paid to the individual.
Sec. 6. (a) The court shall issue a final order for a state income
tax refund setoff following a hearing under this chapter if the court
determines by clear and convincing evidence that the obligor
named in the petition: