Current through Register Vol. 35, No. 18, September 24, 2024
Specific terms used in this section are derived from
42 USC
657 and 45 CFR 300 through 303.
A. In accordance with federal regulations,
for purposes of distribution in a IV-D case, amounts collected, except for
amounts collected through federal income tax refund offset, must be distributed
as follows:
(1) monthly payment ordered for
current ongoing support;
(2)
monthly payment ordered for judgment on arrears;
(3) current support delinquency;
(4) past due support delinquency;
(5) in each of the categories above, the
payment is prioritized in the following order: child support, medical support,
spousal support; any payment that is insufficient to meet the entire obligation
will be applied in the order stated above.
B. The requirement to apply collections first
to satisfy the current support obligation is critical in all IV-D cases to
ensure that payment records are consistent in interstate cases, regardless of
whether the amount applied to current support is paid to the family (as in a
former assistance case) or retained by the state to recover unreimbursed
assistance in a current assistance case.
C. Current assistance cases: The state will
(not exceeding the cumulative amount of unreimbursed assistance paid to the
family):
(1) pay to the federal government the
federal share of the amount collected that is applied to assigned
support;
(2) retain the state share
of the amount collected that is applied to assigned support; and
(3) reduce the cumulative amount of
unreimbursed assistance by the total amount collected that is applied to
assigned support and disbursed under Paragraphs (1) and (2) of Subsection, C of
8.50.125.11 NMAC and distribute collections exceeding the cumulative amount of
unreimbursed assistance to the family in excess of Paragraphs (1) and (2) of
Subsection, C of 8.50.125.11 NMAC to satisfy never assigned support, unassigned
support and conditionally assigned support.
D. The order in which collections are applied
to satisfy assigned and unassigned arrearages in current assistance cases
differ by state.
(1) For collections made
prior to January 23, 2023, the state of New Mexico has selected the following
option:
(a) collections will be first applied
to current support;
(b) additional
collections will be applied to temporarily assigned arrearages or conditionally
assigned arrearages;
(c) additional
collections will be applied to permanently assigned arrearages and
(d) additional collections will be applied to
never assigned arrearages, unassigned pre-assistance arrearages and unassigned
during assistance arrearages.
(2) For collections made effective on or
after January 23, 2023, the state of New Mexico has selected the following
option:
(a) collections will be first applied
to current support;
(b) additional
collections will be first applied to permanently assigned arrearages;
(c) additional collections will be applied to
temporarily assigned arrearages or conditionally assigned arrearages;
and
(d) additional collections will
be applied to never assigned arrearages, unassigned
Pre-assistance arrearages and unassigned during assistance
arrearages.
E. Former assistance cases:
(1) For collections made prior to October 1,
1998, the state shall:
(a) first, distribute
the amount collected to satisfy the current monthly support obligation and pay
that amount to the family;
(b)
second, distribute any amount above the current monthly support obligation to
arrearages owed to the family or assigned to the state; the federal statute
does not specify the order in which collections are applied to satisfy
arrearages; the state must have procedures that specify the order in which
assigned arrearages will be satisfied; if the state distributes any amount to
assigned arrearages, the state must pay to the federal government the federal
share of the amount so collected; the state must retain the state share of the
amount so collected, with one exception; the state may retain or pay to the
family the state share of collections applied to arrearages that accrued while
the family was receiving assistance after October 1, 1996.
(2) For collections made on or after October
1, 1998, or earlier at state option, the state shall:
(a) distribute the amount collected to
satisfy the current monthly support obligation and pay that amount to the
family;
(b) distribute any amount
above the current monthly support obligation to satisfy never-assigned
arrearages and pay that amount to the family;
(c) distribute any amount above amounts
distributed in Subparagraphs (a) and (b) of this section to satisfy unassigned
pre-assistance arrearages and conditionally-assigned arrearages in any order
and pay that amount to the family;
(d) distribute any amount above amounts
distributed in Subparagraphs (a), (b) and (c) of this section to satisfy
permanently-assigned arrearages; the state must pay the federal government the
federal share of the amount collected that is applied to assigned support; the
state must retain the state share of the amount so collected with one
exception; the state may retain or pay to the family the state and federal
share of collections applied to arrearages that accrued while the family was
receiving assistance after October 1, 1996;
(e) reduce the cumulative amount of
unreimbursed assistance by the total amount distributed under subparagraph (d),
distribute collections exceeding the cumulative amount of unreimbursed
assistance to satisfy unassigned during-assistance arrearages and pay those
amounts to the family.
(3) For collections made effective on or
after January 23, 2023 (other than through federal
Income tax refund offset), the state shall:
(a) distribute the amount collected to
satisfy the current monthly support obligation and pay that amount to the
family;
(b) distribute any amount
above the current monthly support obligation to satisfy never-assigned
arrearages and pay that amount to the family;
(c) distribute any amount above amounts
distributed in Subparagraphs (a) and (b) of Paragraph (3) of Subsection E of
8.50.125.11 NMAC to satisfy unassigned pre-assistance arrearages and pay that
amount to the family;
(d)
distribute any amount above amounts distributed in Subparagraphs (a), (b) and
(c) of Paragraph (3) of Subsection E of 8.50.125.11 NMAC to satisfy unassigned
during assistance arrearages and pay those amounts to the family;
(e) distribute any amount above amounts
distributed in Subparagraphs (a), (b), (c) and (d) of Paragraph (3) of
Subsection E of 8.50.125.11 NMAC to satisfy conditionally-assigned arrearages
and pay that amount to the family; the state must pay the federal government
the federal share of the amount collected that is applied to assigned support;
the state must retain the state share of the amount so collected with one
exception; the state may retain or pay to the family the state and federal
share of collections applied to conditionally assigned arrearages;
and
(f) distribute any amount above
amounts distributed in Subparagraphs (a), (b), (c), (d) and (e) of Paragraph
(3) of Subsection E of 8.50.125.11 NMAC to satisfy permanently-assigned
arrearages and reduce the cumulative amount of unreimbursed assistance by the
total amount distributed under Subparagraph (e) and (f) of this Paragraph; the
state must pay the federal government the federal share of the amount collected
that is applied to assigned support;; the state must retain the state share of
the amount so collected with one exception; the state may retain or pay to the
family the state and federal share of collections applied to permanently
assigned arrearages;
F. Never-assistance cases: All support
collections in never-assistance cases must be paid (less any applicable fees)
to the family.
G. Collected funds
will be distributed to the resident parent, legal guardian, caretaker relative
having custody of or responsibility for the child or children,
judicially-appointed conservator with a legal and fiduciary duty to the
custodial parent and the child, or alternate caretaker designated in a record
by the custodial parent. An alternate caretaker is a nonrelative caretaker who
is designated in a record by the custodial parent to take care of the children
for a temporary time period.
H.
When the non-custodial parent has multiple cases with the IV-D agency, payments
received from the non-custodial parent through wage withholding shall be
distributed among all active cases on a pro-rata basis determined by the total
amount of all monthly support obligations. Payments received through
administrative enforcement mechanisms shall be distributed among multiple cases
on a pro-rata split based on the total amount of arrearages owed at the time of
the referral for administrative enforcement, except for reinstatement of
license(s). Payments received for the reinstatement of licenses will be applied
to the specific case(s) rather than split among multiple cases. Any other
direct payments made by the non-custodial parent will be divided among all
active cases involving the non-custodial parent.
