Current through Register Vol. 50, No. 6, December 1, 2023
RELATES TO: KRS 13B.010(2), 13B.170, 205.720, 205.750, 205.755,
205.795, 405.520, 407.5101, 45 C.F.R. 302.32, 302.38, 302.51-302.54, 303.72(h)(5), 42 U.S.C. 651
NECESSITY, FUNCTION, AND CONFORMITY: KRS 194A.050(1) requires
the secretary to promulgate administrative regulations necessary to implement
programs mandated by federal law, or to qualify for the receipt of federal
funds necessary to cooperate with other state and federal agencies for the
proper administration of the cabinet and its programs. KRS 205.755(1)
authorizes the secretary to prescribe the manner in which distributions of
payments of support shall be made, consistent with state and federal law and
administrative regulations. This administrative regulation establishes
procedures for distribution of child support payments.
Section 1. Allocation of income withheld
payments in IV-D and non-IV-D cases.
(1) The
cabinet shall allocate an income withheld payment among an obligor's cases that
include an income withholding order by:
(a)
Totaling the obligor's current support obligations subject to income
withholding;
(b) Dividing each
current support obligation by the total amount from paragraph (a) of this
subsection, to determine a percentage; and
(c) Multiplying the withheld payment received
from the employer by the percentage from paragraph (b) of this subsection, to
determine the portion of the payment to be applied to each current support
obligation subject to income withholding.
(2) The cabinet shall allocate the payment
amount determined in subsection (1)(c) of this section to each of the obligor's
current support obligation amounts subject to income withholding.
(3) If the obligor's current support
obligations subject to income withholding are satisfied for the current month,
the cabinet shall allocate a remaining income withholding amount among the
obligor's ordered arrears obligations subject to income withholding by:
(a) Totaling the obligor's ordered arrears
obligations subject to income withholding;
(b) Dividing the monthly arrears obligation
for each child support case by the total amount from paragraph (a) of this
subsection, to determine a percentage; and
(c) Multiplying the remaining income
withholding amount by the percentage from paragraph (b) of this subsection, to
determine the portion of the payment to be applied to each arrears obligation
subject to income withholding.
(4) The cabinet shall allocate the payment
amount determined in subsection (3)(c) of this section to each of the obligor's
arrears obligations subject to income withholding.
(5) If the obligor's current support and
arrears obligations subject to income withholding are satisfied for the current
month, the cabinet shall allocate a remaining income withheld amount
proportionately according to subsections (1) through (4) of this
section.
(6) Allocation of nonwage
payments in IV-D and non-IV-D cases. The cabinet shall allocate nonwage
payments:
(a) As designated by an obligor for
a specific case; or
(b) If not
designated by an obligor, by allocating a proportionate share to each of the
obligor's child support cases, as determined in subsections (1) through (4) of
this section.
Section
2. K-TAP and Kinship Care Accounts Distribution.
(1) A child support payment collected on
behalf of a K-TAP or Kinship Care recipient shall be:
(a) Payable to the Department for Income
Support, Child Support Enforcement; and
(b) Reported to the K-TAP or Kinship Care
agency within ten (10) working days of the end of the month in which an escrow
payment is disbursed to a recipient.
(2) Upon receipt of a notice of payment, the
K-TAP or Kinship Care agency shall redetermine eligibility for assistance
payments and report the result to the child support agency.
(a) If the K-TAP or Kinship Care case becomes
ineligible, the child support agency shall:
1.
Distribute to the family at the end of the month the amount of child support
collected; and
2. Notify the family
of continuation of child support services as specified in 921 KAR 1:380,
Section 1(4)(b).
(b)
Unless a hearing is requested or a case remains eligible for assistance, the
child support agency shall distribute the collection as specified in Section 6
of this administrative regulation.
Section 3. Distribution of Foster Care
Accounts. A child support payment collected on behalf of a foster care
recipient shall be:
(1) Payable to the
Department for Income Support, Child Support Enforcement; and
(2) Distributed and disbursed to the foster
care agency.
Section 4.
Distribution of Tax Refund Intercept Amounts.
(1) A tax refund intercepted in a public
assistance account shall be:
(a) Applied to
assigned arrearage and forwarded to the public assistance agency within thirty
(30) calendar days of the date of initial receipt; or
(b) If no assigned arrearage remains, the
amount collected shall be:
1. Distributed to
the family within thirty (30) calendar days, unless a joint income tax return
is filed; or
2. Held by the cabinet
for six (6) months before being distributed if a joint income tax return is
filed.
(2) A
tax refund intercepted for a nonpublic assistance account shall be:
(a) Applied to assigned arrearage;
or
(b) If no assigned arrearage
remains:
1. Held by the cabinet for six (6)
months, if a joint income tax return is filed, before being distributed;
or
2. Forwarded to the family
within thirty (30) calendar days of the date of initial receipt.
(3) Within fifteen (15)
calendar days of the date of resolution of an obligor's appeal contesting the
accuracy of a past-due arrears, the cabinet shall forward the ordered amount
to:
(a) The obligor, if resolution is in the
obligor's favor; or
(b) The agency
or family, if resolution is against the obligor.
Section 5. Interstate Case Payment
Distribution. A child support payment that is collected by a responding state
on behalf of an initiating state shall be forwarded to the location specified
by the child support agency in the initiating state, within two (2) business
days of initial receipt.
Section 6.
Treatment of Escrow and Excess Payments.
(1) A
child support payment shall be applied to the obligation amount for the month
in which the support is received.
(2) In a K-TAP or Kinship Care case, if the
obligation for current support and the collection for current support exceed
the grant paid for the month in which the collection was made, the difference
between the grant and the obligation or the collection, whichever is less,
shall be considered escrow and distributed as follows:
(a) The portion that represents the federal
share, as determined by the Medicaid match rate, shall be sent to the federal
government for reimbursement of public assistance previously paid;
(b) The portion that represents the state
share, as determined by the Medicaid match rate, shall be sent to the family;
and
(c) An amount in excess of the
current obligation shall be applied to arrearage.
Section 7. Return of Overpayment.
(1) If a child support overpayment is found
to be due to the noncustodial parent, the amount shall be verified and, if
legitimate, approved by the Department for Income Support, Child Support
Enforcement, Processing and Distribution Branch.
(2) Upon approval by the Processing and
Distribution Branch, a check writer shall be sent to the Department of Treasury
for processing.
(3) A check for the
approved amount of child support overpayment shall be issued to the
noncustodial parent within one (1) to seven (7) days, unless the overpayment is
due to a tax return. If the overpayment is due to a tax return, the approved
amount shall be issued to the noncustodial parent:
(a) Within thirty (30) days if a single
return; or
(b) Within six (6)
months, if a joint return, from the date of the notification of federal tax
offset or until notified that the unobligated spouse's share of the refund has
been paid, whichever is earlier, in accordance with 45 C.F.R. 303.72(h)(5).
31 Ky.R. 1372; Am.
1524; eff. 3-8-2005; 33 Ky.R. 1183; 1591; eff. 12-11-2006; 43 Ky.R. 354; eff.
10-19-2016; Cert.
to be amended; in process, 10/11/2023.
STATUTORY AUTHORITY: KRS 194A.050(1), 205.755(1),
205.795
