Citations Affected: IC 6-8.1; IC 31-14; IC 31-16; IC 31-25.
Synopsis: Tax refund intercepts for past due child support. Prohibits
a fee from being charged to a custodial parent for seeking an offset of
a federal or state income tax refund for past due child support
payments.
Effective: July 1, 2007.
January 8, 2007, read first time and referred to Committee on Ways and Means.
January 26, 2007, reported _ Do Pass.
A BILL FOR AN ACT to amend the Indiana Code concerning
family law and juvenile law.
claimant agency that has a formal agreement with the department for
central debt collection.
(e) The formal agreement must provide that the information
provided to the department be sufficient to establish the obligation in
court and to render the agreement as a legal judgment on behalf of the
state. After transferring a file for collection to the department for
collection, the claimant agency shall terminate all collection procedures
and be available to provide assistance to the department. Upon receipt
of a file for collection, the department shall comply with all applicable
state and federal laws governing collection of the debt.
(f) The department may use a claimant agency's statutory authority
to collect the claimant agency's delinquent accounts, charges, fees,
loans, taxes, or other indebtedness owed to the claimant agency.
(g) The department's right to credit against taxes due may not be
impaired by any right granted the department or other state agency
under this section.
(h) The department of state revenue may charge the claimant agency
a fee not to exceed fifteen percent (15%) of any funds the department
collects for a claimant agency. Notwithstanding any law concerning
delinquent accounts, charges, fees, loans, taxes, or other indebtedness,
the fifteen percent (15%) fee shall be added to the amount due to the
state or claimant agency when the collection is made.
(i) Fees collected under subsection (h) shall be retained by the
department after the debt is collected for the claimant agency and are
appropriated to the department for use by the department in
administering this section.
(j) The department shall transfer any funds collected from a debtor
to the claimant agency within thirty (30) days after the end of the
month in which the funds were collected.
(k) When a claimant agency requests collection by the department,
the claimant agency shall provide the department with:
(1) the full name;
(2) the Social Security number or federal identification number,
or both;
(3) the last known mailing address; and
(4) additional information that the department may request;
concerning the debtor.
(l) The department shall establish a minimum amount that the
department will attempt to collect for the claimant agency.
(m) The commissioner shall report, not later than March 1 for the
previous calendar year, to the governor, the budget director, and the
legislative council concerning the implementation of the centralized
debt collection program, the number of debts, the dollar amounts of
debts collected, and an estimate of the future costs and benefits that
may be associated with the collection program. A report to the
legislative council under this subsection must be in an electronic
format under IC 5-14-6.
(n) The department may not assess a fee to a state agency or a
custodial parent for seeking a setoff to a state or federal income tax
refund for past due child support.
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).
(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) 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).