CFR Part 303

[ Part 301 ] [ Part 302 ][ Part 304 ][ Part 305 ][ Part 307 ]

[Code of Federal Regulations]
[Title 45, Volume 2, Parts 200 to 499]
[Revised as of October 1, 1998]
From the U.S. Government Printing Office via GPO Access
Federal web site where this Code can be found

PART 303 STANDARDS FOR PROGRAM OPERATIONS

Sec. 303.0 Scope and applicability of this part.

     This part prescribes:

     (a) The minimum organizational and staffing requirements the State IV-D agency must meet in carrying out the IV-D program, and

     (b) The standards for program operation which the IV-D agency must meet. [41 FR 55348, Dec. 20, 1976, as amended at 54 FR 32309, Aug 4, 1989]

Sec. 303.1 Definitions.

     The definitions found in Sec. 301.1 of this chapter also are applicable to this part.

Sec. 303.2 Establishment of cases and maintenance of case records.

     (a) The IV-D agency must:

     (1) Make applications for child support services readily accessible to the public;

     (2) When an individual requests an application or IV-D services, provide an application to the individual on the day the individual makes a request in person or send an application to the individual within no more than 5 working days of a written or telephone request. Information describing available services, the individual's rights and responsibilities, and the State's fees, cost recovery and distribution policies must accompany all applications for services and must be provided to AFDC, Medicaid and title IV-E foster care applicants or recipients within no more than 5 working days of referral to the IV-D agency; and      (3) Accept an application as filed on the day it and the application fee are received. An application is a written document provided by the State which indicates that the individual is applying for child support enforcement services under the State's title IV-D program and is signed by the individual applying for IV-D services.

     (b) For all cases referred to the IV-D agency or applying for services under Sec. 302.33 of this chapter, the IV-D agency must, within no more than 20 calendar days of receipt of referral of a case or filing of an application for services under Sec. 302.33, open a case by establishing a case record and, based on an assessment of the case to determine necessary action:

     (1) Solicit necessary and relevant information from the custodial parent and other relevant sources and initiate verification of information, if appropriate; and

     (2) If there is inadequate location information to proceed with the case, request additional information or refer the case for further location attempts, as specified in Sec. 303.3.

     (c) The case record must be supplemented with all information and documents pertaining to the case, as well as all relevant facts, dates, actions taken, contacts made and results in a case.

[54 FR 32309, Aug. 4, 1989]

Sec. 303.3 Location of absent parents.

     (a) Definition. Location means information concerning the physical whereabouts of the absent parent, or the absent parent's employer(s), other sources of income or assets, as appropriate, which is sufficient and necessary to take the next appropriate action in a case.

     (b) For all cases referred to the IV-D agency or applying for services under Sec. 302.33 of this chapter, the IV-D agency must attempt to locate all absent parents or sources of income and/or assets when location is necessary to take necessary action. Under this standard, the IV-D agency must:

     (1) Use appropriate location sources such as the Federal PLS; interstate location networks; local officials and employees administering public assistance, general assistance, medical assistance, food stamps and social services (whether such individuals are employed by the State or a political subdivision); relatives and friends of the absent parent; current or past employers; the local telephone company; the U.S. Postal Service; financial references; unions; fraternal organizations; and police, parole, and probation records if appropriate; and State agencies and departments, as authorized by State law, including those departments which maintain records of public assistance, wages and employment, unemployment insurance, income taxation, driver's licenses, vehicle registration, and criminal records;

     (2) Establish working relationships with all appropriate agencies in order to utilize locate resources effectively;

     (3) Within no more than 75 calendar days of determining that location is necessary, access all appropriate location sources, including transmitting appropriate cases to the Federal PLS, and ensure that location information is sufficient to take the next appropriate action in a case;

     (4) Refer appropriate cases to the IV-D agency of any other State, in accordance with the requirements of Sec. 303.7 of this part. The IV-D agency of such other State shall follow the procedures in paragraphs (b)(1) through (b)(3) of this section for such cases, as necessary, except that the responding State is not required to access the Federal PLS under paragraph (b)(3) of this section;

     (5) Repeat location attempts in cases in which previous attempts to locate absent parents or sources of income and/or assets have failed, but adequate identifying and other information exists to meet requirements for submittal for location, either quarterly or immediately upon receipt of new information which may aid in location, whichever occurs sooner. Quarterly attempts may be limited to automated sources but must include accessing State employment security files. Repeated attempts because of new information which may aid in location must meet the requirements of paragraph (b)(3) of this section; and

     (c) The State must establish guidelines defining diligent efforts to serve process. These guidelines must include periodically repeating service of process attempts in cases in which previous attempts to serve process have failed, but adequate identifying and other information exists to attempt service of process.

[54 FR 32310, Aug. 4, 1989, as amended at 55 FR 25840, June 25, 1990; 57 FR 28110, June 24, 1992; 57 FR 31235, July 14, 1992]

Sec. 303.4 Establishment of support obligations.

     For all cases referred to the IV-D agency or applying under Sec. 302.33 of this chapter, the IV-D Agency must:

     (a) When necessary, establish paternity pursuant to the standards of Sec. 303.5;

     (b) Utilize appropriate State statutes and legal processes in establishing the support obligation pursuant to Sec. 302.50 of this chapter.

     (c) Periodically review and adjust child support orders, as appropriate, in accordance with Sec. 303.8.

     (d) Within 90 calendar days of locating the alleged father or noncustodial parent, regardless of whether paternity has been established, establish an order for support or complete service of process necessary to commence proceedings to establish a support order and, if necessary, paternity (or document unsuccessful attempts to serve process, in accordance with the State's guidelines defining diligent efforts under Sec. 303.3(c)).

     (e) If the court or administrative authority dismisses a petition for a support order without prejudice, the IV-D agency must, at the time of dismissal, examine the reasons for dismissal and determine when it would be appropriate to seek an order in the future, and seek a support order at that time.

     (f) Seek a support order based on a voluntary acknowledgment in accordance with Sec. 302.70(a)(5)(vii).

[40 FR 27164, June 26, 1975, as amended at 50 FR 19650, May 9, 1985; 54 FR 32310, Aug. 4, 1989; 57 FR 30681, July 10, 1992; 59 FR 66250, Dec. 23, 1994]

Sec. 303.5 Establishment of paternity.

     (a) For all cases referred to the IV-D agency or applying for services under Sec. 302.33 of this chapter in which paternity has not been established, the IV-D agency must, as appropriate:

     (1) Provide an alleged father the opportunity to voluntarily acknowledge paternity in accordance with Sec. 302.70(a)(5)(iii); and

     (2) Attempt to establish paternity by legal process established under State law.

     (b) The IV-D agency need not attempt to establish paternity in any case involving incest or forcible rape, or in any case in which legal proceedings for adoption are pending, if, in the opinion of the IV-D agency, it would not be in the best interests of the child to establish paternity.

     (c) The IV-D agency must identify and use through competitive procurement laboratories which perform, at reasonable cost, legally and medically acceptable genetic tests which tend to identify the father or exclude the alleged father. The IV-D agency must make available a list of such laboratories to appropriate courts and law enforcement officials, and to the public upon request.

     (d)(1) Upon the request of any party in a contested paternity case, the IV-D agency, if the agency lacks the authority to order such tests, shall petition the court or administrative authority to require all parties to submit to genetic tests unless, in the case of an individual receiving aid under the State's title IV-A or XIX plan, there has been a determination of good cause for refusal to cooperate under Secs. 232.40 through 232.49 of this title or 42 CFR 433.147, respectively, or if, in accordance with Sec. 303.5(b), the IV-D agency has determined that it would not be in the best interest of the child to establish paternity in a case involving incest or forcible rape, or in any case in which legal proceedings for adoption are pending.

     (2) A contested paternity case is any legal action in which the issue of paternity may be raised under State law and one party denies paternity.

     (e)(1) The IV-D agency may charge any individual who is not a recipient of aid under the State's title IV-A or XIX plan a reasonable fee for performing genetic tests.

     (2) Any fee charged must be reasonable so as not to discourage those in need of paternity establishment services from seeking them and may not exceed the actual costs of the genetic tests.

     (3) If paternity is established and genetic tests were performed, the IV-D agency must attempt to obtain a judgment for the costs of the genetic tests from the party who denied paternity or, at State option, from each party so long as the total amount requested does not exceed the actual costs of the genetic tests.

     (4) The IV-D agency must use any amount collected under paragraphs (e) (1) and (3) of this section that exceeds the costs of performing genetic tests to reimburse any fee paid under paragraph (e)(1) of this chapter.

     (f) The IV-D agency must seek entry of a default order by the court or administrative authority in a paternity case by showing that process has been served on the defendant in accordance with State law, that the defendant has failed to respond to service in accordance with State procedures, and any additional showing required by State law, in accordance with Sec. 302.70(a)(5)(viii).

     (g) Hospital-based program. (1) The State must establish, in cooperation with hospitals, a hospital-based program in every public and private birthing hospital. These programs must be operational in birthing hospitals statewide no later than January 1, 1995 (unless Federal law governing the effective date gives the State additional time).

     (2) During the period immediately before or after the birth of a child to an unmarried woman in the hospital, a hospital-based program must, at a minimum:

     (i) Provide to both the mother and alleged father, if he is present in the hospital:

     (A) Written materials about paternity establishment,

     (B) The forms necessary to voluntarily acknowledge paternity,

     (C) A written description of the rights and responsibilities of acknowledging paternity, and

     (D) The opportunity to speak with staff, either by telephone or in person, who are trained to clarify information and answer questions about paternity establishment;

     (ii) Provide the mother and alleged father, if he is present, the opportunity to voluntarily acknowledge paternity in the hospital;

     (iii) Afford due process safeguards; and

     (iv) Forward completed acknowledgments or copies to the entity designated under Sec. 303.5(g)(8).

     (3) A hospital-based program need not provide services specified in paragraph (g)(2) of this section in cases where the mother or alleged father is a minor or a legal action is already pending, if the provision of such services is precluded by State law.

     (4) The State must require that a voluntary acknowledgment obtained through a hospital-based program be signed by both parents, and that the parents' signatures be authenticated by a notary or witness(es).

     (5) The State must provide to all public and private birthing hospitals in the State:

     (i) Written materials about paternity establishment,

     (ii) Forms necessary to voluntarily acknowledge paternity, and

     (iii) Copies of a written description of the rights and responsibilities of acknowledging paternity.

     (6) The State must provide training, guidance, and written instructions regarding voluntary acknowledgment of paternity, as necessary to operate the hospital-based program.

     (7) The State must assess each birthing hospital's program on at least an annual basis.

     (8) The State must designate an entity to which hospital-based programs must forward completed voluntary acknowledgments or copies in accordance with Sec. 303.5(g)(2)(iv). Under State procedures, this entity must be responsible for promptly recording identifying information about the acknowledgments with a statewide database, and the IV-D agency must have timely access to whatever identifying information and documentation it needs to determine in accordance with Sec. 303.5(h) if an acknowledgment has been recorded and to seek a support order on the basis of a recorded acknowledgment in accordance with Sec. 303.4(f).

     (h) In IV-D cases needing paternity establishment, the IV-D agency must determine if identifying information about a voluntary acknowledgment has been recorded in the statewide database in accordance with Sec. 303.5(g)(8).

[40 FR 27164, June 26, 1975, as amended at 50 FR 19650, May 9, 1985; 54 FR 32310, Aug. 4, 1989; 56 FR 22354, May 15, 1991; 59 FR 66250, Dec. 23, 1994]

Sec. 303.6 Enforcement of support obligations.

     For all cases referred to the IV-D agency or applying for services under Sec. 302.33 in which the obligation to support and the amount of the obligation have been established, the IV-D agency must maintain and use an effective system for:

     (a) Monitoring compliance with the support obligation;

     (b) Identifying on the date the parent fails to make payments in an amount equal to the support payable for one month, or on an earlier date in accordance with State law, those cases in which there is a failure to comply with the support obligation; and

     (c) Enforcing the obligation by:

     (1) Initiating income withholding, in accordance with Sec. 303.100;

     (2) Taking any appropriate enforcement action (except income withholding and Federal and State income tax refund offset) unless service of process is necessary, within no more than 30 calendar days of identifying a delinquency or other support-related non-compliance with the order or the location of the absent parent, whichever occurs later. If service of process is necessary prior to taking an enforcement action, service must be completed (or unsuccessful attempts to serve process must be documented in accordance with the State's guidelines defining diligent efforts under Sec. 303.3(c)), and enforcement action taken if process is served, within no later than 60 calendar days of identifying a delinquency or other support-related non-compliance with the order, or the location of the absent parent, whichever occurs later;

     (3) Submitting once a year all cases which meet the certification requirements under Sec. 303.102 of this part and State guidelines developed under Sec. 302.70(b) of this title for State income tax refund offset, and which meet the certification requirements under Sec. 303.72 of this part for Federal income tax refund offset; and

     (4) In cases in which enforcement attempts have been unsuccessful, at the time an attempt to enforce fails, examining the reason the enforcement attempt failed and determining when it would be appropriate to take an enforcement action in the future, and taking an enforcement action in accordance with the requirements of this section at that time.

[54 FR 32310, Aug. 4, 1989, as amended at 55 FR 25840, June 25, 1990]

Sec. 303.7 Provision of services in interstate IV-D cases.

     (a) Interstate central registry. (1) The State IV-D agency must establish an interstate central registry responsible for receiving, distributing and responding to inquiries on all incoming interstate IV-D cases, including URESA petitions and requests for wage withholding in IV-D cases, and at the option of the State, intrastate IV-D cases no later than August 22, 1988.

     (2) Within 10 working days of receipt of an interstate IV-D case from an initiating State, the central registry must:

     (i) Ensure that the documentation submitted with the case has been reviewed to determine completeness;

     (ii) Forward the case for necessary action either to the State PLS for location services or to the appropriate agency for processing;

     (iii) Acknowledge receipt of the case and ensure that any missing documentation has been requested from the initiating State; and

     (iv) Inform the IV-D agency in the initiating State where the case was sent for action.

     (3) If the documentation received with a case is inadequate and cannot be remedied by the central registry without the assistance of the initiating State, the central registry must forward the case for any action which can be taken pending necessary action by the initiating State.

     (4) The central registry must respond to inquiries from other States within 5 working days of receipt of the request for a case status review.

     (b) Initiating State IV-D agency responsibilities. The IV-D agency must:

     (1) If the State has a long-arm statute which allows paternity establishment, use the authority to establish paternity whenever appropriate.

     (2) Except as provided in paragraph (b)(1) of this section, within 20 calendar days of determining that the absent parent is in another State, and, if appropriate, receipt of any necessary information needed to process the case, refer any interstate IV-D case to the responding State's interstate central registry for action, including URESA petitions and requests for location, document verification, administrative reviews in Federal income tax refund offset cases, wage withholding, and State income tax refund offset in IV-D cases.

     (3) Provide the IV-D agency in the responding State sufficient, accurate information to act on the case by submitting with each case any necessary documentation and either the Interstate Child Support Enforcement Transmittal Form or the URESA Action Request Forms package as appropriate. The State may use computer-generated replicas in the same format and containing the same information in place of the forms.

     (4) Provide the IV-D agency or central registry in the responding State with any requested additional information or notify the responding State when the information will be provided within 30 calendar days of receipt of the request for information by submitting an updated form, or a computer-generated replica in the same format and containing the same information, and any necessary additional documentation.

     (5) Notify the IV-D agency in the responding State within 10 working days of receipt of new information on a case by submitting an updated form and any necessary additional documentation.

     (6) Send a request for review of a child support order to another State within 20 calendar days of determining that a request for review of the order should be sent to the other State and of receipt of information from the requestor necessary to conduct the review in accordance with Sec. 303.8(f)(1) of this part.

     (c) Responding State IV-D agency responsibilities. (1) The IV-D agency must establish and use procedures for managing its interstate IV- D caseload which ensure provision of necessary services and include maintenance of case records in accordance with Sec. 303.2 of this part.

     (2) The IV-D agency must periodically review program performance on interstate IV-D cases to evaluate the effectiveness of the procedures established under this section.

     (3) The State must ensure that the organizational structure and staff of the IV-D agency are adequate to provide for the administration or supervision of the following support enforcement functions specified in Sec. 303.20(c) of this part for its interstate IV-D caseload: Intake; establishment of paternity and the legal obligation to support; location; financial assessment; establishment of the amount of child support; collection; monitoring; enforcement and investigation.

     (4) Within 75 calendar days of receipt of an Interstate Child Support Enforcement Transmittal Form, a URESA Action Request Form or other alternative State form and documentation from its interstate central registry, the IV-D agency must:

     (i) Provide location services in accordance with Sec. 303.3 of this part if the request is for location services or the form or documentation does not include adequate location information on the absent parent;

     (ii) If unable to proceed with the case because of inadequate documentation, notify the IV-D agency in the initiating State of the necessary additions or corrections to the form or documentation.

     (iii) If the documentation received with a case is inadequate and cannot be remedied by the responding IV-D agency without the assistance of the initiating State, the IV-D agency must process the interstate IV- D case to the extent possible pending necessary action by the initiating State.

     (5) Within 10 working days of locating the absent parent in a different jurisdiction within the State, the IV-D agency must forward the form and documentation to the appropriate jurisdiction and notify the initiating State and central registry of its action.

     (6) Within 10 working days of locating the absent parent in a different State, the IV-D agency must--

     (i) Return the form and documentation, including the new location, to the initiating State, or, if directed by the initiating State, forward the form and documentation to the central registry in the State where the absent parent has been located; and

     (ii) Notify the central registry where the case has been sent.

     (7) The IV-D agency must provide any necessary services as it would in intrastate IV-D cases by:

     (i) Establishing paternity in accordance with Sec. 303.5 of this part and attempting to obtain a judgment for costs should paternity be established;

     (ii) Establishing a child support obligation in accordance with Secs. 303.4 and 303.101 of this part and Sec. 303.31 of this chapter;

     (iii) Processing and enforcing orders referred by another State, whether pursuant to the Uniform Reciprocal Enforcement of Support Act or other legal processes, using appropriate remedies applied in its own cases in accordance with Secs. 303.6 and 303.100 through 303.105 of this part and Sec. 303.31 of this chapter; and

     (iv) Collecting and monitoring any support payments from the absent parent and forwarding payments to the location specified by the IV-D agency in the initiating State no later than 15 calendar days from the date of initial receipt in the responding State. The IV-D agency must include sufficient information to identify the case, indicate the date of collection as defined under Sec. 302.51(a) of this chapter or that the payments were made through State income tax refund offset, and include the responding State's identifying code as defined in the Federal Information Processing Standards Publication (FIPS) issued by the National Bureau of Standards or the Worldwide Geographic Location Codes issued by the General Services Administration.

     (v) Reviewing and adjusting child support orders upon request in accordance with Sec. 303.8(f)(2) of this part.

     (8) The IV-D agency must provide timely notice to the IV-D agency in the initiating State in advance of any formal hearings which may result in establishment or adjustment of an order.

     (9) The IV-D agency must notify the IV-D agency in the initiating State within 10 working days of receipt of new information on a case by submitting an updated form or a computer-generated replica in the same format and containing the same information.

     (10) The IV-D agency must notify the interstate central registry in the responding State when a case is closed.

     (d) Payment and recovery of costs in interstate IV-D cases. (1) Except as provided in paragraphs (2) and (4), the IV-D agency in the responding State must pay the costs it incurs in processing interstate IV-D cases.

     (2) The IV-D agency in the initiating State must pay for the costs of genetic testing in actions to establish paternity.

     (3) If paternity is established in the responding State, the IV-D agency in the responding State must attempt to obtain a judgment for the costs of genetic testing from the party who denied paternity, or, at State option, from each party so long as the total amount requested does not exceed the actual costs of the genetic tests, and, if costs of genetic testing are recovered, must reimburse the initiating State.

     (4) Each IV-D agency may recover its costs of providing services in interstate non-AFDC cases in accordance with Sec. 302.33(d) of this chapter.

     (5) The IV-D agency in the responding State must identify any fees or costs deducted from support payments when forwarding payments to the IV-D agency in the initiating State in accordance with Sec. 303.7(c)(7)(iv) of this section.

(Approved by the Office of Management and Budget under control number 0970-0085)

[53 FR 5257, Feb. 22, 1988, as amended at 53 FR 18987, May 26, 1988; 53 FR 21645, June 9, 1988; 53 FR 27518, July 21, 1988; 54 FR 32311, Aug. 4, 1989; 55 FR 25840, June 25, 1990; 56 FR 22355, May 15, 1991; 57 FR 30681, July 10, 1992; 57 FR 61581, Dec. 28, 1992]

Sec. 303.8 Review and adjustment of child support orders.

     (a) Definitions. For purposes of this section:

     (1) Adjustment applies only to the child support provisions of the order, and means:

     (i) An upward or downward change in the amount of child support based upon an application of State guidelines for setting and adjusting child support awards; and/or

     (ii) Provision for the child's health care needs, through health insurance coverage or other means.

     (2) Parent includes any custodial parent or non-custodial parent (or for purposes of requesting a review, any other person or entity who may have standing to request an adjustment to the child support order).

     (3) Review means an objective evaluation, conducted through a proceeding before a court, quasi-judicial process, or administrative body or agency, of information necessary for application of the State's guidelines for support to determine:

     (i) The appropriate support award amount; and

     (ii) The need to provide for the child's health care needs in the order through health insurance coverage or other means.

     (b) Plan for review and adjustment. (1) Effective on October 13, 1990, the State must have a written and publicly available plan indicating how and when child support orders in effect in the State will be periodically reviewed and adjusted.

     (2) During the period from October 13, 1990 through October 12, 1993, the State must, for orders being enforced under this chapter:

     (i) Determine whether such orders should be reviewed, using the plan specified in paragraph (b)(1) of this section;

     (ii) Initiate a review, in accordance with the plan, at the request of either parent subject to the order or of a IV-D agency;

     (iii) Notify each parent subject to a child support order of any review of the order at least 30 calendar days before commencement of the review;

     (iv) Adjust the order when the review determines that there should be a change in the child support award amount, or that health insurance should be required, as indicated by the review in accordance with the State's guidelines for support described in Sec. 302.56 of this chapter.

     (v) Following any review, notify each parent subject to a child support order in effect in the State, of:

     (A) Any adjustment or a determination that there should be no change in the order; and

     (B) Each parent's right to initiate proceedings to challenge the adjustment or determination, either through pre-decision review, appeal, or administrative review,  within at least 30 calendar days after the date of the notice.

     (c) Review of child support orders. Effective October 13, 1993 or an earlier date the State may select, the State must, when providing services under this chapter:

     (1) Have in effect and use a process for review and adjustment of child support orders in effect in the State, including a process for challenging a proposed adjustment or determination.

     (2) Notify each parent subject to a child support order in the State of the right to request a review of the order, and the appropriate place and manner in which the request should be made.

     (3) Periodically publicize the right to request a review as part of its support enforcement services as required under Sec. 302.30 of this chapter and include notice of this right as part of information on IV-D services under Sec. 303.2(a)(2) of this part.

     (4) Review child support orders at 36-month intervals after establishment of the order or the most recent review, unless:

     (i) In a case in which there is an assignment as defined in Sec. 301.1 of this chapter, the State determines, in accordance with Sec. 303.8(c)(5) of this section, that a review would not be in the best interests of the child and neither parent has requested a review; or

     (ii) In a case in which there is no such assignment of support rights to the State, neither parent has requested a review; or

     (iii) In a case in which medical support rights are assigned under 42 CFR 433.146, but child support rights are not assigned to the State under Sec. 232.11 of this title or Sec. 471(a)(17) of the Act, the order requires the provision of health insurance coverage, and neither parent has requested a review; or

     (5) Determine that a review of the child support order would not be in the best interests of a child if there has been a finding of good cause as set forth at Secs. 302.31(c) and 232.40 through 232.49 of this title or under 42 CFR 433.147(c), and the State or local IV-A, XIX, or IV-E agency has determined that support enforcement may not proceed without risk of harm to the child or caretaker relative.

     (6) Notify or serve process upon each parent subject to a child support order in effect in the State of:

     (i) Any review of such order at least 30 calendar days before commencement of the review, and

     (ii) Any information necessary to conduct the review that each parent must provide and the date by which such information must be provided.

     (7) Following any review, notify each parent subject to the child support order of:

     (i) A proposed adjustment or a determination that there should be no adjustment in the order; and

     (ii) Each parent's right to initiate proceedings to challenge the proposed adjustment or other determination, not less than 30 calendar days after the notice.

     (8) Adjust the order, or determine that there should be no adjustment, as appropriate, in accordance with the State's guidelines for setting child support awards and paragraph (d) of this section.

     (d) Basis for seeking adjustment. (1) Inconsistency between the existent child support award amount and the amount of child support which results from application of the State guidelines must be an adequate basis, under State law, for petitioning for an adjustment of an order in a IV-D case, unless:

     (i) The inconsistency does not meet a reasonable quantitative standard established by the State, in accordance with paragraph (d)(2) of this section or

     (ii) The inconsistency is due to the fact that the amount of the current child support award resulted from a rebuttal of the guideline amount and there has not been a change in the circumstances which resulted in the rebuttal of the guideline amount.

     (2) The State may establish a reasonable quantitative standard based upon either a fixed dollar amount or percentage, or both, as a basis for determining whether an inconsistency between the existent child support award amount and the amount of support which results from application of the guidelines is adequate grounds for petitioning for adjustment of the order.

     (3) The need to provide for the child's health care needs in the order, through health insurance or other means, must be an adequate basis under State law to petition for adjustment of an order to provide for the children's health care needs, regardless of whether an adjustment in the amount of child support is necessary. In no event shall the eligibility for or receipt of Medicaid be considered to meet the need to provide for the child's health care needs in the order.

     (e) Timeframes for review and adjustment. (1) In any case in which support rights are assigned to the State under Sec. 301.1 of this part, the State must determine, within 15 calendar days of October 13, 1993 or the date the child support order is 36 months old, whichever date occurs later, whether a review should be conducted, as required under paragraph (c)(4) of this section. Subsequent determinations about whether to conduct a review must be made in accordance with paragraph (c)(4) of this section, at 36-month intervals based upon the date the child support order was adjusted or the date an order was entered determining that the child support order should not be adjusted, or, in any case in which a petition or motion for adjustment was not filed following a review, the date upon which the post-review challenge period ended.

     (2) Within 15 calendar days of receipt of a request for a review, the State must determine whether a review should be conducted, as required under paragraph (c)(4) of this section.

     (3) Within 180 calendar days of determining that a review should be conducted or locating the non-requesting parent, whichever occurs later, a State must:

     (i) Send the notice or serve process required under paragraph (c)(6) of this section that a review will be conducted;

     (ii) Conduct a review of the order;

     (iii) Send the notice of the proposed adjustment or determination that there should be no adjustment as required under paragraph (c)(7) of this section; and

     (iv) Adjust the order or determine that the order should not be adjusted in accordance with paragraph (c)(8) of this section.

     (f) Interstate review and adjustment. Effective October 13, 1993, or such earlier date the State may select:

     (1) Initiating State responsibilities. The State in which a request for review is made, or in which there is an assignment of rights to support, as defined under Sec. 301.1 of this part, must:

     (i) In any case in which support rights are assigned to the State under Sec. 301.1, determine, within 15 calendar days of October 13, 1993, or the date the child support order is 36 months old, whichever date occurs later, whether a review should be conducted, as required under paragraph (c)(4) of this section, and in which State a review and adjustment will be sought. Subsequent determinations about whether to conduct a review must be made in accordance with paragraph (c)(4) of this section, at 36-month intervals based upon the date the child support order was adjusted or the date an order was entered determining that the child support order should not be adjusted, or, in any case in which a petition or motion for adjustment was not filed following a review, the date upon which the post-review challenge period ended.

     (ii) Within 15 calendar days of receipt of a request for a review, determine whether a review should be conducted, as required under paragraph (c)(4) of this section, and in which State a review and adjustment will be sought.

     (iii) If the State determines under paragraph (f)(1)(i) or paragraph (f)(1)(ii) of this section that it should review a child support order in effect in the State, the State shall, within the 180-calendar-day timeframe for review and adjustment of child support orders set forth in paragraph (e)(2) of this section, send the notice that a review will be conducted to each parent, conduct a review, provide notice to the parties of the right to challenge the proposed adjustment or other determination, and adjust the order or determine that the order should not be adjusted, in accordance with paragraphs (c) (6) through (8) of this section.

     (iv) If the State determines under paragraph (f)(1)(i) or paragraph (f)(1)(ii) of this section to request a review of a child support order in another State, send a request for review to that State within 20 calendar days of receipt of sufficient information to conduct the review and provide that State with sufficient information on the requestor to act on the request, in accordance with the requirements of Sec. 303.7(b)(6) of this part.

     (v) If the request for review is the first contact between the initiating and responding States in the case, send the request for review to the interstate central registry in the responding State. However, if the initiating State has previously referred the case to a responding State for action and determines under paragraph (f)(1)(i) or paragraph (f)(1)(ii) of this section that the child support order should be reviewed in that responding State, the request for review may be sent directly to the appropriate agency in the responding State for processing.

     (vi) Send, to the parent in the initiating State, a copy of any notice issued by a responding State in connection with the review and adjustment of an order, within 5 working days of receipt of such notice in the initiating State.

     (2) Responding State responsibilities. (i) Within 15 calendar days of receipt of a request for a review of a child support order in the responding State, the appropriate processing agency in the responding State must determine whether a review should be conducted, in accordance with paragraph (c)(4) of this section and the responding State's procedures for review and adjustment of child support orders.

     (ii) Within 180 calendar days of determining that a review should be conducted or locating the non-requesting parent, whichever occurs later, the responding State must send the notice that a review will be conducted to each parent, conduct a review, adjust the order or determine that the order should not be adjusted, and provide the notice of the adjustment or determination and the right to challenge the adjustment or determination in accordance with paragraphs (c) (6) through (8) of this section.

     (iii) The State may meet the notice requirements of Sec. 303.7(c)(8) of this part by sending the notices of the review required under paragraphs (c)(6) and (c)(7) of this section to the parent in the initiating State through the IV-D agency in the initiating State.

     (3) Applicable laws and procedures. The applicable laws and procedures for review and adjustment of child support orders, including the State guidelines for setting child support awards, established in accordance with Sec. 302.56 of this chapter, are those of the State in which the review and adjustment, or determination that there be no adjustment, take place.

[57 FR 30681, July 10, 1992, as amended at 57 FR 61581, Dec. 28, 1992; 58 FR 7040, Feb. 3, 1993]

Sec. 303.11 Case closure criteria.

     (a) The IV-D agency shall establish a system for case closure.

     (b) In order to be eligible for closure, the case must meet at least one of the following criteria:

     (1) In the case of a child who has reached the age of majority, there is no longer a current support order and arrearages are under $500 or unenforceable under State law;

     (2) In the case of a child who has not reached the age of majority, there is no longer a current support order and arrearages are under $500 or unenforceable under State law;

     (3) The absent parent or putative father is deceased and no further action, including a levy against the estate, can be taken;

     (4) Paternity cannot be established because:

     (i) The child is at least 18 years old and action to establish paternity is barred by a statute of limitations which meets the requirements of Sec. 302.70(a)(5) of this chapter;

     (ii) A genetic test or a court or administrative process has excluded the putative father and no other putative father can be identified; or

     (iii) In accordance with Sec. 303.5(b) of this part, the IV-D agency has determined that it would not be in the best interests of the child to establish paternity in a case involving incest or forcible rape, or in any case where legal proceedings for adoption are pending;

     (5) The absent parent's location is unknown, and the State has made regular attempts using multiple sources to locate the absent parent over a three-year period, all of which have been unsuccessful;

     (6) The absent parent cannot pay support for the duration of the child's minority because the parent has been institutionalized in a psychiatric facility, is incarcerated with no chance for parole, or has a medically-verified total and permanent disability with no evidence of support potential. The State must also determine that no income or assets are available to the absent parent which could be levied or attached for support;

     (7) The absent parent is a citizen of, and lives in, a foreign country, does not work for the Federal government or a company with headquarters or offices in the United States, and has no reachable domestic income or assets; and the State has been unable to establish reciprocity with the country;

     (8) The IV-D agency has provided location-only services as requested under Sec. 302.35(c)(3) of this chapter;

     (9) The non-AFDC custodial parent requests closure of a case and there is no assignment to the State of medical support under 42 CFR 433.146 or of arrearages which accrued under a support order;

     (10) There has been a finding of good cause as set forth at Sec. 302.31(c) and either Secs. 232.40 through 232.49 of this chapter or 42 CFR 433.147 and the State or local IV-A, IV-E, or Medicaid agency has determined that support enforcement may not proceed without risk of harm to the child or caretaker relative;

     (11) In a non-AFDC case receiving services under Sec. 302.33(a)(1) (i) or (iii), the IV-D agency is unable to contact the custodial parent within a 30 calendar day period despite attempts by both phone and at least one certified letter; or

     (12) In a non-AFDC case receiving services under Sec. 302.33(a)(1) (i) or (iii), the IV-D agency documents the circumstances of the custodial parent's noncooperation and an action by the custodial parent is essential for the next step in providing IV-D services.

     (c) In cases meeting the criteria in paragraphs (b) (1) through (7) and (11) and (12) of this section, the State must notify the custodial parent in writing 60 calendar days prior to closure of the case of the State's intent to close the case. The case must be kept open if the custodial parent supplies information in response to the notice which could lead to the establishment of paternity or a support order or enforcement of an order or, in the instance of paragraph (b)(11) of this section, if contact is reestablished with the custodial parent. If the case is closed, the custodial parent may request at a later date that the case be reopened if there is a change in circumstances which could lead to the establishment of paternity or a support order or enforcement of an order.

     (d) The IV-D agency must retain all records for cases closed pursuant to this section for a minimum of three years, in accordance with 45 CFR part 74, subpart D.

[54 FR 32311, Aug. 4, 1989, as amended at 56 FR 8004, Feb. 26, 1991]

Sec. 303.15 Agreements to use the Federal Parent Locator Service (PLS) in parental kidnapping and child custody cases.

     (a) Definitions. The following definitions apply to this section:

     (1) Authorized person means the following:

     (i) Any agent or attorney of any State having an agreement under this section, who has the duty or authority under the laws of the State to enforce a child custody determination.

     (ii) Any court having jurisdiction to make or enforce a child custody determination, or any agent of the court;

     (iii) Any agent or attorney of the United States, or of a State having an agreement under this section, who has the duty or authority to investigate, enforce, or bring a prosecution with respect to the unlawful taking or restraint of a child.

     (2) Custody determination means a judgment, decree, or other order of a court providing for custody or visitation of a child, and includes permanent and temporary orders, and initial orders and modifications.

     (b) If the State enters into an agreement with the Office that meets the requirements of section 463 of the Act and this section of the regulations, the State IV-D agency may request information from the Federal PLS for the purpose of:

     (1) Enforcing any State or Federal law with respect to the unlawful taking or restraint of a child; or

     (2) Making or enforcing a child custody determination.

     (c) An agreement under section 463 of the Act must contain the following provisions:

     (1) The Director will provide the State IV-D agency with the most recent home address and place of employment of an absent parent or child if the information is requested for the purposes specified in paragraph (b) of this section.

     (2) The State shall make requests for information under the agreement only for the purposes specified in paragraph (b) of this section.

     (3) The State shall make requests to the Federal PLS through the State PLS established under Sec. 302.35 of this chapter.

     (4) The State shall submit requests in the standard format and exchange media normally available to or used by the State PLS.

     (5) The State shall identify requests in a manner prescribed by the Office in instructions so that requests can be distinguished from other types of requests submitted to the Federal PLS.

     (6) The State shall impose, collect and account for fees to offset the costs to the State and the Office incurred in processing requests.

     (7) The State shall periodically transmit the fees collected to cover the costs to the Federal PLS of processing requests. Fees shall be transmitted in the amount and in the manner prescribed by the Office in instructions.

     (8) The State shall adopt policies and procedures to ensure that information shall be used and disclosed solely for the purposes specified in paragraph (b) of this section. Under this requirement, the State shall:

     (i) Restrict access to the information to authorized persons whose duties or responsibilities require access in connection with child custody and parental kidnapping cases;

     (ii) Store the information during nonduty hours, or when not in use, in a locked container within a secure area that is safe from access by unauthorized persons;

     (iii) Process the information under the immediate supervision and control of authorized personnel, in a manner which will protect the confidentiality of the information, and in such a way that unauthorized persons cannot retrieve the information by computer, remote terminal, or other means;

     (iv) Brief all employees who will have access to the data on security procedures and instructions;

     (v) Send the information directly to the requestor and make no other use of the information;

     (vi) After the information is sent to the requestor, destroy any confidential records and information related to the request.

     (d)(1) An agreement under section 463 of the Act must be signed by the Governor of the State or the Governor's designee.

     (2) The agreement must also be signed by the Attorney General of the State who must certify that the signing State official has the authority under State law to commit the State to the agreement.

[46 FR 54557, Nov. 3, 1981]

Sec. 303.20 Minimum organizational and staffing requirements.

     (a) The organizational structure of the IV-D agency (see Sec. 302.12) provides for administration or supervision of all the functions for which it is responsible under the State plan, is appropriate to the size and scope of the program in the State, and contains clearly established lines for administrative and supervisory authority.

     (b) There is an organizational structure and sufficient staff to fulfill the following required State level functions:

     (1) The establishment and administration of the State plan.

     (2) Formal evaluation of the quality, efficiency, effectiveness, and scope of services provided under the plan.

     (3) Coordination of activities pursuant to, and assurance of compliance with, the requirements of the State's Reciprocal Enforcement of Support Act for cases pursuant to a State plan.

     (4) Requests to the DHHS Office of Child Support Enforcement for use of the Federal Parent Locator Service, the U.S. District Courts, and IRS collection procedures.

     (5) Preparation and submission of reports required by the Office.

     (6) Financial control of the operation of the plan.

     (7) Operation of the State Parent Locator Service as required under Sec. 302.35 of this chapter.

     (c) There is an organizational structure and sufficient resources at the State and local level to meet the performance and time standards contained in this part and to provide for the administration or supervision of the following support enforcement functions:

     (1) Intake. Activities associated with initial support case opening.

     (2) Establishing the legal obligation to support. Activities related to determining the absent parent's legal obligation to support his or her dependent children, including paternity determination when necessary.

     (3) Locate. Activities associated with locating an absent parent.

     (4) Financial assessment. Activities related to determining an absent parent's ability to provide support.

     (5) Establishment of the amount of support. Activities related to determining an absent parent's child support obligation, including methods and terms of payment.

     (6) Collection. Activities related to monitoring payment activities and processing cash flow.

     (7) Enforcement. Activities to enforce collection of support, including income withholding and other available enforcement techniques.

     (8) Investigation. Activities related to investigation necessary to accomplish the functions of this paragraph.

     (d) The functions referred to in paragraphs (b) (1), (2) and (6) of this section may not be delegated by the IV-D agency. The functions referred to in paragraph (b)(5) of this section may be delegated to the extent necessary to report on activities delegated by the IV-D agency.

     (e) No functions under the State plan may be delegated by the IV-D agency if such functions are to be performed by caseworkers who are also performing the assistance payments or social services functions under title IV-A or XX of the Act. In the case of a sparsely populated geographic area, upon justification by the IV-D agency documenting a lack of administrative feasibility in not utilizing staff of the IV-A agency, the Office may approve alternate arrangements that include sufficient reporting and cost allocation methods that will assure compliance with Federal requirements and proper claims for Federal financial participation. Under this provision:

     (1) Caseworker means any person who has decision-making authority over individual cases on a day-to-day basis and includes, but is not limited to such designations as intake worker, eligibility technician, caseworker, and social worker.

     (2) The assistance payments function means activities related to determination of eligibility for, and amount of financial assistance under the approved State plan under title I, IV-A, X, XIV, or XVI, State Supplemental income payments under title XVI of the Act, and State or local General Assistance programs. It includes the complete process of determining initial and continuing eligibility for financial and medical assistance and commodities distribution or food stamps.

     (3) The social services function means those activities included in the approved State plan and carried out pursuant to parts 220, 222 and 226 of this title or carried out pursuant to title XX of the Act. It includes determination of eligibility for, and delivery of services to, families and individuals under the approved State plan or under title XX of the Act.

     (f) There are the following types of staff in sufficient numbers to achieve the standards for an effective program prescribed in this part:

     (1) Attorneys or prosecutors to represent the agency in court or administrative proceedings with respect to the establishment and enforcement of orders of paternity and support, and

     (2) Other personnel such as legal, interviewer, investigative, accounting, clerical, and other supportive staff.

     (g) If it is determined as a result of an audit conducted under part 305 of this chapter that a State is not in substantial compliance with the requirements of title IV-D of the Act, the Secretary will evaluate whether inadequate resources was a major contributing factor and, if necessary, may set resource standards for the State.

[40 FR 27164, June 26, 1975, as amended at 47 FR 57282, Dec. 23, 1982; 54 FR 32312, Aug. 4, 1989]

Sec. 303.21 Safeguarding information.

     (a) Under State statute which imposes legal sanctions, the use or disclosure of information concerning applicants or recipients of support enforcement services is limited to purposes directly connected with:

     (1) The administration of the plan or program approved under parts A, B, D, E, or F of title IV or under titles I, X, XIV, XVI, XIX or XX or the supplemental security income program established under title XVI;

     (2) Any investigations, prosecution or criminal or civil proceeding conducted in connection with the administration of any such plan or program;

     (3) The administration of any other Federal or Federally assisted program which provides assistance, in cash or in kind, or services, directly to individuals on the basis of need; and

     (4) Reporting to an appropriate agency or official, information on known or suspected instances of physical or mental injury, sexual abuse or exploitation, or negligent treatment or maltreatment of a child who is the subject of a child enforcement activity under circumstances which indicate that the child's health or welfare is threatened thereby.

     (b) These safeguards shall also prohibit disclosure to any committee or legislative body (Federal, State, or local) of any information that identifies by name or address any such applicant or recipient.

[47 FR 24719, June 8, 1982, as amended at 58 FR 41437, August 4, 1993]

Sec. 303.30 Securing medical support information.

     (a) If the IV-A or IV-E agency does not provide the information specified in this paragraph to the Medicaid agency and if the information is available or can be obtained in a IV-D case for which an assignment as defined under Sec. 301.1 of this chapter is in effect, the IV-D agency shall obtain the following information on the case:

     (1) AFDC case number, title IV-E foster care case number, Medicaid number or the individual's social security number;

     (2) Name of absent parent;

     (3) Social security number of absent parent;

     (4) Name and social security number of child(ren);

     (5) Home address of absent parent;

     (6) Name and address of absent parent's place of employment;

     (7) Whether the absent parent has a health insurance policy and, if so, the policy name(s) and number(s) and name(s) of person(s) covered.

     (b) When an individual is eligible for services under Sec. 302.33 of this chapter, the IV-D agency shall inform the individual that medical support enforcement services are available and shall secure the information specified in paragraph (a) of this section:

     (1) If the individual is a Medicaid applicant or recipient; or

     (2) With the consent of the individual, if the individual is not a Medicaid applicant or recipient.

     (c) The IV-D agency shall provide the information obtained under paragraphs (a) and (b)(1) of this section to the Medicaid agency in a timely manner by the most efficient and cost-effective means available, using manual or automated systems.

(Approved by the Office of Management and Budget under control numbers 0960-0420 and 0970-0107)

[50 FR 41895, Oct. 15, 1985, as amended at 51 FR 37732, Oct. 24, 1986. Redesignated at 54 FR 32312, Aug. 4, 1989; 56 FR 8004, Feb. 26, 1991]

Sec. 303.31 Securing and enforcing medical support obligations.

     (a) For purposes of this section:

     (1) Health insurance is considered reasonable in cost if it is employment-related or other group health insurance, regardless of service delivery mechanism.

     (2) Health insurance includes fee for service, health maintenance organization, preferred provider organization, and other types of coverage under which medical services could be provided to the dependent child(ren) of an absent parent.

     (b) With respect to cases for which there is an assignment as defined in Sec. 301.1 of this chapter in effect, the IV-D agency shall:

     (1) Unless the custodial parent and child(ren) have satisfactory health insurance other than Medicaid, petition the court or administrative authority to include health insurance that is available to the absent parent at reasonable cost in new or modified court or administrative orders for support.

     (2) Petition the court or administrative authority to include medical support as required under paragraph (b)(1) of this section whether or not--

     (i) Health insurance at reasonable cost is actually available to the absent parent at the time the order is entered; or

     (ii) Modification of current coverage to include the child(ren) in question is immediately possible.

     (3) Establish written criteria to identify cases not included under paragraphs (b)(1) and (b)(2) of this section where there is a high potential for obtaining medical support based on--

     (i) Evidence that health insurance may be available to the absent parent at a reasonable cost, and

     (ii) Facts, as defined by State law, regulation, procedure, or other directive, which are sufficient to warrant modification of the existing support order to include health insurance coverage for a dependent child(ren).

     (4) Petition the court or administrative authority to modify support orders for cases identified in paragraph (b)(3) of this section to include medical support in the form of health insurance coverage.

     (5) Provide the custodial parent with information pertaining to the health insurance policy which has been secured for the dependent child(ren) pursuant to an order obtained under this section.

     (6) Inform the Medicaid agency when a new or modified court or administrative order for child support includes medical support and provide the information referred to in Sec. 303.30(a) of this part to the Medicaid agency when the information is available.

     (7) If health insurance is available to the absent parent at reasonable cost and has not been obtained at the time the order is entered, take steps to enforce the health insurance coverage required by the support order and provide the Medicaid agency with the information referred to in Sec. 303.30(a) of this part.

     (8) Periodically communicate with the Medicaid agency to determine if there have been lapses in health insurance coverage for Medicaid applicants and recipients.

     (9) Request employers and other groups offering health insurance coverage that is being enforced by the IV-D agency to notify the IV-D agency of lapses in coverage.

     (c) The IV-D agency shall inform an individual who is eligible for services under Sec. 302.33 of this chapter that medical support enforcement services are available and shall provide the services specified in paragraph (b) of this section:

     (1) If an individual eligible for services under Sec. 302.33 is a Medicaid recipient; or

     (2) With the consent of the individual who is eligible for services under Sec. 302.33 and is not a Medicaid recipient, except that health insurance information shall not be transmitted to the Medicaid agency.

(Approved by the Office of Management and Budget under control numbers 0960-0420 and 0970-0107)

[50 FR 41895, Oct. 15, 1985, as amended at 51 FR 37732, Oct. 24, 1986; 53 FR 36021, Sept. 16, 1988. Redesignated at 54 FR 32312, Aug. 4, 1989, and amended at 56 FR 8004, Feb. 26, 1991; 61 FR 67241, Dec. 20, 1996]

Sec. 303.52 Pass-through of incentives to political subdivisions.

     The State must calculate and promptly pay incentives to political subdivisions as follows:

     (a) The State IV-D agency must develop a standard methodology for passing through an appropriate share of its incentive payment to those political subdivisions of the State that participate in the costs of the program, taking into account the efficiency and effectiveness of the activities carried out under the State plan by those political subdivisions. In order to reward efficiency and effectiveness, the methodology also may provide for payment of incentives to other political subdivisions of the State that administer the program.

     (b) To ensure that the standard methodology developed by the State reflects local participation, the State IV-D agency must submit a draft methodology to participating political subdivisions for review and comment or use the rulemaking process available under State law to receive local input.

[54 FR 32312, Aug. 4, 1989]

Sec. 303.69 Requests by agents or attorneys of the United States for information from the Federal Parent Locator Service (PLS).

     (a) Agents or attorneys of the United States may request information directly from the Federal PLS in connection with a parental kidnapping or child custody case. (See Sec. 303.15(a) of this part for a definition of persons authorized to request the information.)

     (b) All requests under this section shall be made in the manner and form prescribed by the Office.

     (c) All requests under this section shall contain the information specified in Sec. 303.70(c) of this part.

     (d) All requests under this section shall be accompanied by a statement, signed by the agent or attorney of the United States, attesting to the following:

     (1) The request is being made solely to locate an individual in connection with a parental kidnapping or child custody case.

     (2) Any information obtained through the Federal PLS shall be treated as confidential, shall be used solely for the purpose for which it was obtained and shall be safeguarded.

     (e) A fee may be charged to cover the costs of processing requests for information. A separate fee may be charged to cover costs of searching for a social security number before processing a request for location information.

(Approved by the Office of Management and Budget under control number 0960-0258)

[48 FR 38645, Aug. 25, 1983, as amended at 51 FR 37731, Oct. 24, 1986]

Sec. 303.70 Requests by the State Parent Locator Service (SPLS) for information from the Federal Parent Locator Service (FPLS).

     (a) Only the central State PLS office, and any additional IV-D offices designated under Sec. 302.35(b), may submit requests for information to the Federal PLS.

     (b) All requests shall be made in the manner and form prescribed by the Office.

     (c) All requests shall contain the following information:

     (1) The absent parent's name;

     (2) The absent parent's social security number (SSN). If the SSN is unknown, the IV-D agency must make every reasonable effort to ascertain the individual's SSN before submitting the request to the Federal PLS;

     (3) Whether the individual is or has been a member of the armed services, if known;

     (4) Whether the individual is receiving, or has received, any Federal compensation or benefits, if known; and

     (5) Any other information prescribed by the Office.

     (d) All requests shall be accompanied by a statement, signed by the director of the IV-D agency or his or her designee, attesting to the following:

     (1) The request is being made solely to locate an individual for the purpose of establishing paternity or securing support or in connection with a parental kidnapping or child custody case.

     (2) Any information obtained through the Federal PLS shall be treated as confidential and shall be safeguarded under the requirements of Sec. 303.21 of this chapter and instructions issued by the Office.

     (e)(1) The IV-D agency shall pay the fees required under:

     (i) Section 453(e)(2) of the Act in IV-D cases in which there is no assignment of support rights to the State under Sec. 301.1 of this chapter and in non-IV-D locate-only cases in which the location of an absent parent is the only service requested; and

     (ii) Section 454(17) of the Act in parental kidnapping and child custody cases.

     (2)(i) The IV-D agency may charge an individual requesting information, or pay without charging the individual, the fee required under sections 453(e)(2) and 454(17) of the Act.

     (ii) The State may recover the fee required under section 453(e)(2) of the Act from the absent parent who owes a support obligation to a family on whose behalf the IV-D agency is providing services and repay it to the individual requesting information or itself.

     (iii) State funds used to pay the fee under section 453(e)(2) of the Act are not program expenditures under the State plan but are program income under Sec. 304.50 of this chapter.

     (3) The fees required under sections 453(e)(2) and 454(17) of the Act shall be reasonable and as close to actual costs as possible so as not to discourage use of the FPLS by authorized individuals.

     (4)(i) For costs of processing requests for information under sections 453(e)(2) and 454(17) of the Act, the Federal government will charge the IV-D agency periodically. A fee will be charged for submitting a case to the FPLS for location information.

     (ii) If a State fails to pay the appropriate fees charged by the Office under this section, the services provided by the FPLS in cases subject to the fees may be suspended until payment is received.

     (iii) Fees shall be transmitted in the amount and manner prescribed by the Office in instructions.

(Approved by the Office of Management and Budget under control number 0960-0165)

[46 FR 54557, Nov. 3, 1981, as amended at 47 FR 24719, June 8, 1982; 47 FR 57282, Dec. 23, 1982; 51 FR 37731, Oct. 24, 1986; 57 FR 28110, June 24, 1992]

Sec. 303.71 Requests for full collection services by the Secretary of the Treasury.

     (a) Definition. State collection mechanisms means a comprehensive set of written procedures developed and used to maximize effective collection action within the State.

     (b) Families eligible. Subject to the criteria and procedures in this section, the IV-D agency may request the Secretary to certify the amount of a child support obligation to the Secretary of the Treasury for collection under section 6305 of the Internal Revenue Code of 1954. Requests may be made on behalf of families who make assignments as defined in Sec. 301.1 of this chapter and on behalf of families receiving services under Sec. 302.33.

     (c) Cases eligible. For a case to be eligible for certification to the Secretary of the Treasury:

     (1) There shall be a court or administrative order for support;

     (2) The amount to be collected under the support order shall be at least $750 in arrears;

     (3) At least six months shall have elapsed since the last request for referral of the case to the Secretary of the Treasury;

     (4) The IV-D agency, the client, or the client's representative shall have made reasonable efforts to collect the support through the State's own collection mechanisms. The agency need not repeat actions taken by the client or client's representative that the agency determines to be comparable to the State's collection mechanisms.

     (5) Only the State that has taken an assignment as defined in Sec. 301.1 of this chapter or an application or referral under Sec. 302.33 of this chapter may request IRS collection services on behalf of a given case.

     (d) Procedures for submitting requests. (1) The IV-D agency shall submit requests for certification to the regional office in the manner and form prescribed by the Office.

     (2) The Director of the State IV-D agency (or designee) shall sign requests for collection by the Secretary of the Treasury.

     (e) Criteria for acceptable requests. The IV-D agency shall ensure that each request contains:

     (1) Sufficient information to identify the debtor, including:

     (i) The individual's name;

     (ii) The individual's social security number;

     (iii) The individual's address and place of employment, including the source of this information and the date it was last verified.

     (2) A copy of all court or administrative orders for support;

     (3)(i) The amount owed under the support orders;

     (ii) A statement of whether the amount is in lieu of, or in addition to, amounts previously referred to IRS for collection;

     (4)(i) A statement that the agency, the client, or the client's representative has made reasonable efforts to collect the amount owed using the State's own collection mechanisms or mechanisms that are comparable;

     (ii) A description of the actions taken, why they failed, and why further State action would be unproductive;

     (5) The dates of any previous requests for referral of the case to the Secretary of the Treasury;

     (6) A statement that the agency agrees to reimburse the Secretary of the Treasury for the costs of collection; and

     (7)(i) A statement that the agency has reason to believe that the debtor has assets that the Secretary of the Treasury might levy to collect the support; and

     (ii) A statement of the nature and location of the assets, if known.

     (f) Review of requests by the Office. (1) The Regional Representative will review each request to determine whether it meets the requirements of this section.

     (2) If a request meets all requirements, the Regional Representative will promptly certify and transmit the request with a copy of all supporting documentation to the Secretary of the Treasury. At the same time, the Regional Representative will notify the IV-D agency in writing of the transmittal.

     (3)(i) If a request does not meet all requirements, the Regional Representative will attempt to correct the request in consulation with the IV-D agency.

     (ii) If the request cannot be corrected through consultation, the Regional Representative will return it to the agency with an explanation of why the request was not certified.

     (g) Notification of changes in case status. (1) The IV-D agency shall immediately notify the Regional Representative of the following changes in case status:

     (i) A change in the amount due;

     (ii) A change in the nature or location of assets;

     (iii) A change in the address of the debtor.

     (2) The Regional Representative will transmit the revised information to the Secretary of the Treasury.

(Approved by the Office of Management and Budget under control number 0960-0281)

[47 FR 16030, Apr. 14, 1982; 48 FR 7179, Feb. 18, 1983, as amended at 51 FR 37731, Oct. 24, 1986; 56 FR 8004, Feb. 26, 1991]

Sec. 303.72 Requests for collection of past-due support by Federal tax refund offset.

     (a) Past-due support qualifying for offset. Past-due support as defined in Sec. 301.1 of this chapter qualifies for offset if:

     (1) There has been an assignment of the support rights under Sec. 232.11 of this title or section 471(a)(17) of the Act to the State making the request for offset or the IV-D agency is providing services under Sec. 302.33 of this chapter.

     (2) For support which has been assigned to the State under Sec. 232.11 of this title or section 471(a)(17) of the Act:

     (i) The amount of the support is not less than $150; and

     (ii) The support has been delinquent for three months or longer.

     (3) For support owed in cases where the IV-D agency is providing IV- D services under Sec. 302.33 of this chapter:

     (i) The support is owed to or on behalf of a qualified child, or a qualified child and the parent with whom the child is living if the same support order includes support for the child and the parent.

     (ii) The amount of support is not less than $500;

     (iii) At State option, the amount has accrued since the State IV-D agency began to enforce the support order; and

     (iv) The State has checked its records to determine if an AFDC or foster care maintenance assigned arrearage exists with respect to the non-AFDC individual or family.

     (4) The IV-D agency has in its records:

     (i) A copy of the order and any modifications upon which the amount referred is based which specify the date of issuance and amount of support;

     (ii) A copy of the payment record, or, if there is no payment record, an affidavit signed by the custodial parent attesting to the amount of support owed; and

     (iii) In non-AFDC cases, the custodial parent's current address.

     (5) Before submittal, the State IV-D agency has verified the accuracy of the name and social security number of the absent parent and the accuracy of the past-due support amount. If the State IV-D agency has verified this information previously, it need not reverify it.

     (6) A notification of liability for past-due support has been received by the Secretary of the Treasury as prescribed by paragraph (c)(2) of this section.

     (b) Notification to OCSE of liability for past-due support. (1) A State IV-D agency shall submit a notification (or notifications) of liability for past-due support on a magnetic tape to the Office by the submittal date specified by the Office in instructions.

     (2) The notification of liability for past-due support shall contain with respect to each delinquency:

     (i) The name of the taxpayer who owes the past-due support;

     (ii) The social security number of that taxpayer;

     (iii) The amount of past-due support owed;

     (iv) The State codes as contained in the Federal Information Processing Standards (FIPS) publication of the National Bureau of Standards and also promulgated by the General Services Administration in Worldwide Geographical Location Codes; and

     (v) Whether the past-due support is due an individual who applied for services under Sec. 302.33 of this chapter.

     (3) The notification of liability for past-due support may contain with respect to each delinquency the taxpayer's IV-D case number and FIPS code for the local IV-D agency where the case originated.

     (c) Review of requests by the Office. (1) The Deputy Director will review each request to determine whether it meets the requirements of this section.

     (2) If a request meets all requirements, the Deputy Director will transmit the request to the Secretary of the Treasury and will notify the State IV-D agency in writing of the transmittal.

     (3) If a request does not meet all requirements, the Deputy Director will attempt to correct the request in consultation with the State IV-D agency.

     (4) If a request cannot be corrected through consultation, the Deputy Director will return it to the State IV-D agency with a written explanation of why the request could not be transmitted to the Secretary of the Treasury.

     (d) Notification of changes in case status. (1) The State referring past-due support of offset must, in interstate situations, notify any other State involved in enforcing the support order when it submits an interstate case for offset and when it receives the offset amount from the IRS.

     (2) The State IV-D agency shall within time frames established by the Office in instructions, notify the Deputy Director in writing of any deletion of an amount referred for collection by Federal tax refund offset or any decrease in the amount if the decrease is significant according to guidelines developed by the State. The notification shall contain the information specified in paragraph (b) of this section.

     (e) Notices of offset--(1) Advance. The State IV-D agency, or the Office, if the State requests and the Office agrees, shall send a written advance notice to inform an absent parent that the amount of his or her past-due support will be referred to the IRS for collection by Federal tax refund offset. The notice must inform absent parents:

     (i) Of their right to contest the State's determination that past- due support is owed or the amount of past-due support;

     (ii) Of their right to an administrative review by the submitting State or at the absent parent's request the State with the order upon which the referral for offset is based;

     (iii) Of the procedures and timeframe for contacting the IV-D agency in the submitting State to request administrative review; and

     (iv) That, in the case of a joint return, the IRS will notify the absent parent's spouse at the time of offset regarding the steps to take to protect the share of the refund which may be payable to that spouse. If the IV-D agency sends the notice, it must meet the conditions specified by the Office in instructions.

     (2) At offset. The IRS will notify the absent parent that the offset has been made. The IRS will also notify any individual who filed a joint return with the absent parent of the steps to take in order to secure a proper share of the refund.

     (f) Procedures for contesting in intrastate cases. (1) Upon receipt of a complaint from an absent parent in response to the advance notice required in paragraph (e)(1) of this section or concerning a tax refund which has already been offset, the IV-D agency must send a notice to the absent parent and, in non-AFDC cases the custodial parent, of the time and place of the administrative review of the complaint and conduct the review to determine the validity of the complaint.

     (2) If the complaint concerns a joint tax refund that has not yet been offset, the IV-D agency must inform the absent parent that the IRS will notify the absent parent's spouse at the time of offset regarding the steps to take to secure his or her proper share of the refund. If the complaint concerns a joint tax refund which has already been offset, the IV-D agency must refer the absent parent to the IRS.

     (3) If the administrative review results in a deletion of, or decrease in, the amount referred for offset, the IV-D agency must notify OCSE in writing within time frames established by the Office and include the information specified in paragraph (b) of this section.

     (4) If, as a result of the administrative review, an amount which has already been offset is found to have exceeded the amount of past-due support owed, the IV-D agency must take steps to refund the excess amount to the absent parent promptly.

     (g) Procedures for contesting in interstate cases. (1) If the absent parent requests an administrative review in the submitting State, the IV-D agency must meet the requirements in paragraph (f) of this section.

     (2) If the complaint cannot be resolved by the submitting State and the absent parent requests an administrative review in the State with the order upon which the referral for offset is based, the submitting State must notify the State with the order of the request for an administrative review and provide that State with all necessary information, including the information listed under paragraph (a)(4) of this section, within 10 days of the absent parent's request for an administrative review.

     (3) The State with the order must send a notice to the absent parent and, in non-AFDC cases the custodial parent, of the time and place of the administrative review, conduct the review and make a decision within 45 days of receipt of the notice and information from the submitting State.

     (4) If the administrative review results in a deletion of, or decrease in, the amount referred for offset, the State with the order must notify the Office in writing within time frames established by the Office and include the information specified in paragraph (b) of this section.

     (5) Upon resolution of a complaint after an offset has been made, the State with the order must notify the submitting State of its decision promptly.

     (6) When an administrative review is conducted in the State with the order, the submitting State is bound by the decision made by the State with the order.

     (7) Based on the decision of the State with the order, the IV-D agency in the submitting State must take steps to refund any excess amount to the absent parent promptly.

     (8) In computing incentives under Sec. 304.12 of this part, if the case is referred to the State with the order for an administrative review, the collections made as a result of Federal tax refund offset will be treated as having been collected in full by both the submitting State and the State with the order.

     (h) Distribution of collections. (1) Collections received by the IV- D agency as a result of refund offset to satisfy AFDC or non-AFDC past- due support shall be distributed as past-due support as required under Sec. 302.51(b) (4) and (5) and (e) of this chapter.

     (2) Collections received by the IV-D agency in foster care maintenance cases shall be distributed as past-due support under Sec. 302.52(b) (3) and (4) of this chapter.

     (3) The IV-D agency must inform individuals receiving services under Sec. 302.33 of this chapter in advance that amounts offset will be applied first to satisfy any past-due support which has been assigned to the State under Sec. 232.11 of this title, 42 CFR 433.146, or section 471(a)(17) of the Act and submitted for Federal tax refund offset.

     (4) If the amount collected is in excess of the amounts required to be distributed under Sec. 302.51 (b) (4) and (5) and (e) or Sec. 302.52(b) (3) and (4) of this chapter, the IV-D agency must repay the excess to the absent parent whose refund was offset or to the parties filing a joint return within a reasonable period in accordance with State law.

     (5) In cases where the Secretary of the Treasury, through OCSE, notifies the State that an offset is being made to satisfy non-AFDC past-due support from a refund based on a joint return, the State may delay distribution until notified that the unobligated spouse's proper share of the refund has been paid or for a period not to exceed six months from notification of offset, whichever is earlier.

     (6) Collections from offset may be applied only against the past-due support which was specified in the advance notice described in paragraph (e)(1) of this section.

     (i) Payment of fee. (1) A refund offset fee, in such amount as the Secretary of the Treasury and the Secretary of Health and Human Services have agreed to be sufficient to reimburse the IRS for the full cost of the offset procedure, shall be deducted from the offset amount and credited to the IRS appropriations which bore all or part of the costs involved in making the collection. The full amount offset must be credited against the obligor's payment record. The fee which the Secretary of the Treasury may impose with respect to non-AFDC submittals shall not exceed $25 per submittal.

     (2) The State IV-D agency may charge an individual who is receiving services under Sec. 302.33(a)(1) (i) or (iii) of this chapter a fee not to exceed $25 for submitting past-due support for Federal tax refund offset. The State must inform the individual in advance of the amount of any fee charged.

     (3) Any State which requests the Office to send the advance written notice under paragraph (e)(1) of this section will be charged a fee, in an amount established by the Office in instructions, for printing and mailing of pre-offset notices. This fee shall be credited to the Health and Human Services appropriations which bore all or part of the costs involved in making the collection.

     (j) Each State involved in a referral of past-due support for offset must comply with instructions issued by the Office.

(Approved by the Office of Management and Budget under control number 0960-0385)

[50 FR 19651, May 9, 1985; 50 FR 31719, Aug. 6, 1985, as amended at 51 FR 37731, Oct. 24, 1986; 53 FR 47710, Nov. 25, 1988; 54 FR 32312, Aug. 4, 1989; 56 FR 8005, Feb. 26, 1991; 58 FR 41437, Aug. 4, 1993]

Sec. 303.73 Applications to use the courts of the United States to enforce court orders.

     The IV-D agency may apply to the Secretary for permission to use a United States district court to enforce a support order of a court of competent jurisdiction against an absent parent who is present in another State if the IV7-D agency can furnish evidence in accordance with instructions issued by the office.

[61 FR 67241, Dec. 20, 1996]

Sec. 303.80 Recovery of direct payments.

     (a) Definition. Direct payment means an assigned support payment from an absent parent which is received directly by an AFDC recipient.

     (b) Direct payments that must be recovered by the IV-D agency. In States that place the responsibility for recovery of direct payments with the IV-D agency under the State plan option at Sec. 302.31(a)(3)(ii) of this chapter, the IV-D agency must recover all such payments. The only exception is a direct payment retained by the recipient during the period when the sanction for failure to cooperate is in effect, as provided at 45 CFR 232.12(d).

     (c) What the IV-D agency must do prior to establishing a repayment agreement with an AFDC recipient. Before establishing a repayment agreement with an AFDC recipient, the IV-D agency must:

     (1) Document that the recipient has, in fact, received and retained direct payments, and the amounts;

     (2) Provide written notice of intent to recover the payments to the recipient that includes the following:

     (i) An explanation of the recipient's responsibility to cooperate by turning over direct payments as a condition of eligibility for AFDC, and the sanction for failure to cooperate as provided at Sec. 232.12(d) of this title;

     (ii) A detailed list of the direct payments which have been retained by the recipient, as documented by the IV-D agency, including the dates and amounts of these payments as well as a description of any documentary evidence (such as photocopies of the checks) which the IV-D agency possesses;

     (iii) A proposal for a repayment plan between the recipient and the IV-D agency;

     (iv) An explanation that repaying retained direct payments to the IV-D agency according to a signed repayment plan which meets the conditions of paragraph (d) below is a condition of cooperation under Sec. 232.12(b)(4) of this title.

     (3) Provide the recipient with an opportunity for an informal meeting to clarify the recipient's responsibilities and to resolve any differences regarding repayment of the directly received support by the recipient.

     (d) Requirements of the repayment agreement. The repayment agreement between the IV-D agency and the recipient who has received and retained direct payments must be reasonably related to:

     (1) The recipient's income and resources including the AFDC grant; and

     (2) The total amount of retained support.

     (e) Referrals to the IV-A agency for a determination of failure to cooperate. The IV-D agency must refer a case to the IV-A agency with evidence of failure to cooperate if:

     (1) The recipient refuses to sign a repayment agreement; or

     (2) The recipient enters into a repayment agreement but subsequently fails to make a payment under the terms of the agreement.

     (f) Subsequent notification to the IV-A agency as required. If the IV-D agency has referred a case to the IV-A agency with evidence of failure to cooperate for either of the reasons in paragraph (e) of this section the IV-D agency must notify the IV-A agency when either of the following changes in circumstances occurs:

     (1) The recipient who refused to enter into a repayment agreement consents to do so and signs the agreement; or

     (2) The recipient who defaulted on an agreement begins making regularly scheduled payments according to the agreement. Under this paragraph, a regularly scheduled payment is a payment made in the current month for the amount specified in the initial repayment agreement between the IV-D agency and the recipient. The resumption of regularly scheduled payments cannot be interpreted to mean payment of amounts which were not paid during the period of default, nor amounts which could be categorized as balloon payments or which would be due as a result of an acceleration clause. To recover amounts due from any period of default, the IV-D agency must extend the duration of the repayment agreement.

[47 FR 43956, Oct. 5, 1982, as amended at 50 FR 34696, Aug. 27, 1985]

Sec. 303.100 Procedures for wage or income withholding.

     (a) General withholding requirements. (1) The State must ensure that in the case of each absent parent against whom a support order is or has been issued or modified in the State, and is being enforced under the State plan, so much of his or her wages must be withheld, in accordance with this section, as is necessary to comply with the order.

     (2) In addition to the amount to be withheld to pay the current month's obligation, the amount to be withheld must include an amount to be applied toward liquidation of overdue support.

     (3) The total amount to be withheld under paragraphs (a)(1), (a)(2) and, if applicable, (f)(1)(iii) of this section may not exceed the maximum amount permitted under section 303(b) of the Consumer Credit Protection Act (15 U.S.C. 1673(b)).

     (4) In the case of a support order being enforced under the State plan, the withholding must occur without the need for any amendment to the support order involved or any other action by the court or entity that issued it other than that required or permitted under this section.

     (5) If there is more than one notice for withholding against a single absent parent, the State must allocate amounts available for withholding giving priority to current support up to the limits imposed under section 303(b) of the Consumer Credit Protection Act (15 U.S.C. 1673(b)). The State must establish procedures for allocation of support among families, but in no case shall the allocation result in a withholding for one of the support obligations not being implemented.

     (6) The withholding must be carried out in full compliance with all procedural due process requirements of the State.

     (7) The State must have procedures for promptly terminating withholding:

     (i) In all cases, when there is no longer a current order for support and all arrearages have been satisfied; or,

     (ii) At State option, when the absent parent requests termination and withholding has not been terminated previously and subsequently initiated, and the absent parent meets the conditions for an alternative arrangement set forth under paragraph (b)(3) of this section.

     (8) The State must have procedures for promptly refunding to absent parents amounts which have been improperly withheld.

     (9) The State may extend its withholding to include withholding from forms of income other than wages.

     (10) Support orders issued or modified in IV-D cases must include a provision requiring the absent parent to keep the IV-D agency informed of the name and address of his or her current employer, whether the absent parent has access to health insurance coverage at reasonable cost and, if so, the health insurance policy information.

     (b) Immediate withholding on IV-D cases. (1) In the case of a support order being enforced under this part that is issued or modified on or after November 1, 1990, the wages of an absent parent shall be subject to withholding, regardless of whether support payments by such parent are in arrears, on the effective date of the order, except that such wages shall not be subject to withholding under this paragraph in any case where:

     (i) Either the absent or custodial parent demonstrates, and the court or administrative authority finds, that there is good cause not to require immediate withholding; or (ii) A written agreement is reached between the absent and custodial parent, and, at State option, the State in IV-D cases in which there is an assignment of support rights to the State, which provides for an alternative arrangement.

     (2) For the purposes of this paragraph, any finding that there is good cause not to require immediate withholding must be based on at least:

     (i) A written determination that, and explanation by the court or administrative authority of why, implementing immediate wage withholding would not be in the best interests of the child; and

     (ii) Proof of timely payment of previously ordered support in cases involving the modification of support orders.

     (3) For purposes of this paragraph, ``written agreement'' means a written alternative arrangement signed by both the custodial and absent parent, and, at State option, by the State in IV-D cases in which there is an assignment of support rights to the State, and reviewed and entered in the record by the court or administrative authority.

     (c) Initiated withholding in IV-D cases. In the case of wages not subject to immediate withholding under paragraph (b) of this section, including cases subject to a finding of good cause or to a written agreement:

     (1) The wages or the absent parent shall become subject to the withholding on the date on which the payments which the absent parent has failed to make under a support order are at least equal to the support payable for one month or, if earlier, and without regard to whether there is an arrearage, the earliest of:

     (i) The date on which the absent parent requests that withholding begin;

     (ii) The date on which the custodial parent requests that withholding begin, if the State determines, in accordance with such procedures and standards as it may establish, that the request should be approved; or

     (iii) Such earlier date as State law or procedure may provide.

     (2) The State must send the advance notice required under paragraph (d) of this section to the absent parent within 15 calendar days of the appropriate date under paragraph (c)(1) of this section if the absent parent's address is known on that date, or, if the absent parent's address is not known on that date, within 15 calendar days of locating the absent parent.

     (3) The only basis for contesting a withholding under this paragraph is a mistake of fact, which for purposes of this paragraph means an error in the amount of current or overdue support or in the identity of the alleged absent parent.

     (d) Advance notice to the absent parent in cases of initiated withholding. (1) On the date specified in paragraph (c)(2) of this section, the State must send advance notice to the absent parent regarding the initiated withholding. The notice must inform the absent parent:

     (i) Of the amount of overdue support that is owed, if any, and the amount of wages that will be withheld;

     (ii) That the provision for withholding applies to any current or subsequent employer or period of employment;

     (iii) Of the procedures available for contesting the withholding and that the only basis for contesting the withholding is a mistake of fact;

     (iv) Of the period within which the absent parent must contact the State in order to contest the withholding and that failure to contact the State within the specified time limit will result in the State notifying the employer to begin withholding; and

     (v) Of the actions the State will take if the individual contests the withholding, including the procedures established under paragraph (e) of this section.

     (2)(i) The requirement for advance notice to the absent parent under paragraph (d)(1) of this section and for State procedures when the absent parent contests the withholding in response to the advance notice under paragraph (e) of this section do not apply in the case of any State which had a withholding system in effect on August 16, 1984 if the system provided on that date, and continues to provide, any other procedures as may be necessary to meet the procedural due process requirements of State law.

     (ii) Any State in which paragraph (d)(2)(i) of this section applies must meet all other requirements of this section and must send notice to the employer under paragraph (f) of this section within 15 calendar days of the appropriate date specified in paragraph (c)(1) of this section if the employer's address is known on that date, or, if the employer's address is not known on that date, within 15 calendar days of locating the employer's address.

     (e) State procedures when the absent parent contests initiated withholding in response to the advance notice. The State must establish procedures for use when an absent parent contests the withholding. Within 45 calendar days of sending advance notice to the absent parent under paragraph (d) of this section, the State must:

     (1) Provide the absent parent an opportunity to present his or her case to the State;

     (2) Determine if the withholding shall occur based on an evaluation of the facts, including the absent parent's statement of his or her case;

     (3) Notify the absent parent whether or not the withholding is to occur and, if it is to occur, include in the notice the time frames within which the withholding will begin and the information given to the employer in the notice required under paragraph (f) of this section; and

     (4) If withholding is to occur, send the notice required under paragraph (f) of this section.

     (f) Notice to the employer for immediate and initiated withholding. (1) To initiate withholding, the State must send the absent parent's employer a notice which includes the following:

     (i) The amount to be withheld from the absent parent's wages, and a statement that the amount actually withheld for support and other purposes, including the fee specified under paragraph (f)(1)(iii) of this section, may not be in excess of the maximum amounts permitted under section 303(b) of the Consumer Credit Protection Act (15 U.S.C. 1673(b));

     (ii) That the employer must send the amount to the State (or to such other individual or entity as the State may direct) within 10 working days of the date the absent parent is paid, and must report to the State (or to such other individual or entity as the State may direct) the date on which the amount was withheld from the absent parent's wages;

     (iii) That, in addition to the amount withheld for support, the employer may deduct a fee established by the State for administrative costs incurred for each withholding, if the State permits a fee to be deducted;

     (iv) That the withholding is binding upon the employer until further notice by the State;

     (v) That the employer is subject to a fine to be determined under State law for discharging an absent parent from employment, refusing to employ, or taking disciplinary action against any absent parent because of the withholding;

     (vi) That, if the employer fails to withhold wages in accordance with the provisions of the notice, the employer is liable for the accumulated amount the employer should have withheld from the absent parent's wages;

     (vii) That the withholding under this section shall have priority over any other legal process under State law against the same wages;

     (viii) That the employer may combine withheld amounts from absent parents' wages in a single payment to each appropriate agency requesting withholding and separately identify the portion of the single payment which is attributable to each individual absent parent;

     (ix) That the employer must implement withholding no later than the first pay period that occurs after 14 working days following the date the notice was mailed; and

     (x) That the employer must notify the State promptly when the absent parent terminates employment and provide the absent parent's last known address and the name and address of the absent parent's new employer, if known.

     (2) In the case of an immediate wage withholding under paragraph (b) of this section, the State must issue the notice to the employer specified in paragraph (f)(1) of this section within 15 calendar days of the date the support order is entered if the employer's address is known on that date, or, if the address is unknown on that date, within 15 calendar days of locating the employer's address.

     (3) In the case of initiated withholding, if the absent parent fails to contact the State to contest withholding within the period specified in the advance notice in accordance with the requirements of paragraph (d)(1)(iv) of this section, the State must send the notice to the employer required under paragraph (f)(1) of this section within 15 calendar days of the end of the contact period if the employer's address is known on that date, or, if the address is unknown on that date, within 15 calendar days of locating the employer's address.

     (4) If the absent parent changes employment within the State when a withholding is in effect, the State must notify the absent parent's new employer, in accordance with the requirements of paragraph (f)(1) of this section, that the withholding is binding on the new employer.

     (g) Administration of withholding. (1) The State must designate a public agency to administer withholding in accordance with procedures specified by the State for keeping adequate records to document, track, and monitor support payments.

     (2)(i) The State may designate public or private entities to administer withholding on a State or local basis under the supervision of the State withholding agency if the entity or entities are publicly accountable and follow the procedures specified by the State; and (ii) the State may designate only one entity to administer withholding in each jurisdiction.

     (3) Effective October 1, 1997, the State must be capable of receiving withheld amounts and accounting information which are electronically transmitted by the employer to the State.

     (4) Amounts withheld must be distributed in accordance with section 457 of the Act and Secs. 302.32, 302.51 and 302.52 of this chapter.

     (5) The State must reduce its IV-D expenditures by any interest earned by the State's designee on withheld amounts.

     (h) Interstate withholding. (1) The State law must provide for procedures to extend the State's withholding system so that the system will include withholding from income or wages derived within the State in cases where the applicable support orders were issued in other States. A State may require registration of orders from other States for purposes of enforcement through withholding only if registration is for the sole purpose of obtaining jurisdiction for enforcement of the order; does not confer jurisdiction on the court or agency for any other purpose (such as modification of the underlying or original support order or resolution of custody or visitation disputes); and does not delay implementation of withholding beyond the timeframes established in paragraph (h)(5) of this section.

     (2) The State law must require employers to comply with a withholding notice issued by the State.

     (3) Within 20 calendar days of a determination that withholding is required in a particular case, and, if appropriate, receipt of any information necessary to carry out withholding, the initiating State must notify the IV-D agency of the State in which the absent parent is employed to implement interstate withholding. The notice must contain all information necessary to carry out the withholding, including the amount requested to be withheld, a copy of the support order and a statement of arrearages, if appropriate. If necessary, the State where the support order is entered must provide the information necessary to carry out the withholding within 30 calendar days of receipt of a request for information by the initiating State.

     (4) The State in which the absent parent is employed must implement withholding in accordance with paragraph (h)(5) of this section upon receipt of the notice required in paragraph (h)(3) of this section.

     (5) The State in which the absent parent is employed must:

     (i) Within 15 calendar days of location of the absent parent and his or her employer, send notice to the absent parent, if appropriate, in accordance with the requirements of paragraph (d) of this section;

     (ii) Provide the absent parent with an opportunity to contest the withholding, if appropriate, in accordance with paragraph (e) of this section;

     (iii) Send notice to the employer in accordance with the requirements of paragraph (f) of this section; and

     (iv) Notify the State in which the custodial parent is receiving services when the absent parent is no longer employed in the State and provide the name and address of the absent parent and new employer, if known.

     (6) The withholding must be carried out in full compliance with all procedural due process requirements of the State in which the absent parent is employed.

     (7) Except with respect to when withholding must be implemented which is controlled by the State where the support order was entered, the law and procedures of the State in which the absent parent is employed shall apply.

     (i) Provision for withholding in all child support orders. Child support orders issued or modified in the State between October 1, 1985, and January 1, 1994, or modified on or after January 1, 1994, must have a provision for withholding of wages, in order to ensure that withholding as a means of support is available if arrearages occur without the necessity of filing an application for IV-D services. This requirement does not alter the requirement governing all IV-D cases in paragraph (a)(4) of this section that enforcement under the State plan must proceed without the need for a withholding provision in the order.

[57 FR 30682, July 10, 1992, as amended at 61 FR 67241, Dec. 20, 1996]

Sec. 303.101 Expedited processes.

     (a) Definition. Expedited processes means administrative or expedited judicial processes or both which increase effectiveness and meet processing times specified in paragraph (b)(2) of this section.

     (b) Basic requirement. (1) The State must have in effect and use, in interstate and intrastate cases, expedited processes as specified under this section to establish paternity and to establish and enforce support orders.

     (2) Under expedited processes:

     (i) In IV-D cases needing support order establishment, regardless of whether paternity has been established, action to establish support orders must be completed from the date of service of process to the time of disposition within the following timeframes: (A) 75 percent in 6 months; and (B) 90 percent in 12 months.

     (ii) In IV-D cases where a support order has been established, actions to enforce the support order must be taken within the timeframes specified in Secs. 303.6(c)(2) and 303.100;

     (iii) For purposes of the timeframe at Sec. 303.101(b)(2)(i), in cases where the IV-D agency uses long-arm jurisdiction and disposition occurs within 12 months of service of process on the alleged father or noncustodial parent, the case may be counted as a success within the 6 month tier of the timeframe, regardless of when disposition occurs in the 12 month period following service of process.

     (iv) Disposition, as used in paragraphs (b)(2)(i) and (iii) of this section, means the date on which a support order is officially established and/or recorded or the action is dismissed.

     (c) Safeguards. Under expedited processes:

     (1) Paternities and orders established by means other than full judicial process must have the same force and effect under State law as paternities and orders established by full judicial process within the State;

     (2) The due process rights of the parties involved must be protected;

     (3) The parties must be provided a copy of the voluntary acknowledgment of paternity, paternity determination, and/or support order;

     (4) There must be written procedures for ensuring the qualification of presiding officers;

     (5) Recommendations of presiding officers may be ratified by a judge; and

     (6) Action taken may be reviewed under the State's generally applicable judicial procedures.

     (d) Functions. The functions performed by presiding officers under expedited processes must include at minimum:

     (1) Taking testimony and establishing a record;

     (2) Evaluating evidence and making recommendations or decisions to establish paternity and to establish and enforce orders;

     (3) Accepting voluntary acknowledgment of paternity or support liability and stipulated agreements setting the amount of support to be paid;

     (4) Entering default orders upon a showing that process has been served on the defendant in accordance with State law, that the defendant failed to respond to service in accordance with State procedures, and any additional showing required by State law; and

     (5) Ordering genetic tests in contested paternity cases in accordance with Sec. 303.5(d)(1).

     (e) Exemption for political subdivisions. A State may request an exemption from any of the requirements of this section for a political subdivision on the basis of the effectiveness and timeliness of paternity establishment, support order issuance or enforcement within the political subdivision in accordance with the provisions of Sec. 302.70(d) of this chapter.

(Approved by the Office of Management and Budget under control number 0960-0385)

[50 FR 19655, May 9, 1985, as amended at 50 FR 23958, June 7, 1985; 59 FR 66251, Dec. 23, 1994]

Sec. 303.102 Collection of overdue support by State income tax refund offset.

     (a) Overdue support qualifying for offset. Overdue support qualifies for State income tax refund offset if:

     (1) There has been an assignment of the support obligation under Sec. 232.11 of this title or section 471(a)(17) of the Act or the IV-D agency is providing services under Sec. 302.33 of this chapter, and

     (2) The State does not determine, using guidelines it must develop which are generally available to the public, that the case is inappropriate for application of this procedure.

     (b) Accuracy of amounts referred for offset. The IV-D agency must establish procedures to ensure that:

     (1) Amounts referred for offset have been verified and are accurate; and

     (2) The appropriate State office or agency is notified of any significant reductions in (including an elimination of) an amount referred for collection by State income tax refund offset.

     (c) Notice to custodial parent. The IV-D agency must inform individuals receiving services under Sec. 302.33 of this chapter, in advance:

     (1) That, for cases in which medical support rights have been assigned under 42 CFR 433.146, and amounts are collected which represent specific dollar amounts designated in the support order for medical purposes, amounts offset will be distributed under Sec. 302.51(e) of this chapter; and

     (2) If amounts offset will be applied first to satisfy any past-due support which has been assigned to the State under Sec. 232.11 of this title or section 471(a)(17) of the Act.

     (d) Advance notice to absent parent. The State must send a written advance notice to inform the absent parent of the referral for State income tax refund offset and of the opportunity to contest the referral.

     (e) Procedures for contesting offset and for reimbursing excess amounts offset. (1) The State must establish procedures, which are in full compliance with the State's procedural due process requirements, for an absent parent to use to contest the referral of overdue support for State income tax refund offset.

     (2) If the offset amount is found to be in error or to exceed the amount of overdue support, the State IV-D agency must take steps to refund the excess amount in accordance with procedures that include a mechanism for promptly reimbursing the absent parent.

     (3) The State must establish procedures for ensuring that in the event of a joint return, the absent parent's spouse can apply for a share of the refund, if appropriate, in accordance with State law.

     (f) Fee for certain cases. The State IV-D agency may charge an individual who is receiving services under Sec. 302.33(a)(1) (i) or (iii) of this chapter a reasonable fee to cover the cost of collecting past-due support using State tax refund offset. The State must inform the individual in advance of the amount of any fee charged.

     (g) Distribution of collections. (1) A State must distribute collections received as a result of State income tax refund offset: (i) For an AFDC case, under Sec. 302.51 (b) (4) and (5) and (e) of this chapter;

     (ii) For a foster care maintenance case, under Sec. 302.52(b) (3) and (4) of this chapter; and

     (iii) For a non-AFDC case, except as specified in paragraph (g)(1)(iv) of this section, by paying offset amounts to the family first or using them first to reimburse the State, depending on the State's method for distributing arrearage collections in non-AFDC cases.

     (iv) For cases in which medical support rights have been assigned under 42 CFR 433.146, and amounts are collected which represent specific dollar amounts designated in the support order for medical purposes, under Sec. 302.51(e) of this chapter.

     (2) If the amount collected is in excess of the amounts required to be distributed under paragraph (g)(1) of this section, the IV-D agency must repay the excess to the absent parent whose State income tax refund was offset within a reasonable period in accordance with State law.

     (3) The State must credit amounts offset on individual payment records.

     (h) Information to the IV-D agency. The State agency responsible for processing the State tax refund offset must notify the State IV-D agency of the absent parent's home address and social security number or numbers. The State IV-D agency must provide this information to any other State involved in enforcing the support order.

(Approved by the Office of Management and Budget under control number 0960-0385)

[50 FR 19655, May 9, 1985; 50 FR 31720, Aug. 6, 1985, as amended at 51 FR 37731, Oct. 24, 1986; 54 FR 32312, Aug. 4, 1989; 56 FR 8005, Feb. 26, 1991]

Sec. 303.103 Procedures for the imposition of liens against real and personal property.

     (a) The State shall have in effect and use procedures which require that a lien will be imposed against the real and personal property of an absent parent who owes overdue support and who resides or owns property in the State.

     (b) The State must develop guidelines which are generally available to the public to determine whether the case is inappropriate for application of this procedure.

(Approved by the Office of Management and Budget under control number 0960-0385)

[50 FR 19656, May 9, 1985, as amended at 51 FR 37731, Oct. 24, 1986]

Sec. 303.104 Procedures for posting security, bond or guarantee to secure payment of overdue support.

     (a) The State shall have in effect and use procedures which require that absent parents post security, bond or give some other guarantee to secure payment of overdue support.

     (b) The State must provide advance notice to the absent parent regarding the delinquency of the support payment and the requirement of posting security, bond or guarantee, and inform the absent parent of his or her rights and the methods available for contesting the impending action, in full compliance with the State's procedural due process requirements.

     (c) The State must develop guidelines which are generally available to the public to determine whether the case is inappropriate for application of this procedure.

(Approved by the Office of Management and Budget under control number 0960-0385)

[50 FR 19656, May 9, 1985, as amended at 51 FR 37731, Oct. 24, 1986]

Sec. 303.105 Procedures for making information available to consumer reporting agencies.

     (a) Consumer reporting agency means any person which, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer reports to third parties, and which uses any means or facility of interstate commerce for the purpose of preparing or furnishing consumer reports.

     (b) For cases in which the amount overdue support exceeds $1,000, the IV-D agency must have in effect procedures to make information available to consumer reporting agencies upon their request regarding the amount of overdue support owed by an absent parent. The procedures must include use of guidelines that are generally available to the public to determine whether application of this procedure is inappropriate in a particular case. In cases in which the overdue support is less than $1,000, these procedures are at the option of the State.

     (c) The State IV-D agency may charge the agency a fee not to exceed the actual cost to the State of providing the information under paragraph (b) of this section.

     (d) The IV-D agency must provide advance notice to the absent parent who owes the support concerning the proposed release of the information to the consumer reporting agency and must inform the absent parent of the methods available for contesting the accuracy of the information.

     (e) The IV-D agency must comply with all of the procedural due process requirements of State law before releasing the information.

(Approved by the Office of Management and Budget under control number 0960-0385)

[50 FR 19656, May 9, 1985; 50 FR 31720, Aug. 6, 1985, as amended at 51 FR 37731, Oct. 24, 1986]

Sec. 303.106 Procedures to prohibit retroactive modification of child support arrearages.

     (a) The State shall have in effect and use procedures which require that any payment or installment of support under any child support order is, on and after the date it is due:

     (1) A judgment by operation of law, with the full force, effect, and attributes of a judgment of the State, including the ability to be enforced;

     (2) Entitled as a judgment to full faith and credit in such State and in any other State; and

     (3) Not subject to retroactive modification by such State or by any other State except as provided in paragraph (b) of this section.

     (b) The procedures referred to in paragraph (a)(3) of this section may permit modification with respect to any period during which there is pending a petition for modification, but only from the date that notice of such petition has been given, either directly or through the appropriate agent, to the obligee or (where the obligee is the petitioner) to the obligor.

[54 FR 15764, Apr. 19, 1989]

Sec. 303.107 Requirements for cooperative arrangements.

     The State must ensure that all cooperative arrangements:

     (a) Contain a clear description of the specific duties, functions and responsibilities of each party;

     (b) Specify clear and definite standards of performance which meet Federal requirements;

     (c) Specify that the parties will comply with title IV-D of the Act, implementing Federal regulations and any other applicable Federal regulations and requirements;

     (d) Specify the financial arrangements including budget estimates, covered expenditures, methods of determining costs, procedures for billing the IV-D agency, and any relevant Federal and State reimbursement requirements and limitations;

     (e) Specify the kind of records that must be maintained and the appropriate Federal, State and local reporting and safeguarding requirements; and

     (f) Specify the dates on which the arrangement begins and ends, any conditions for revision or renewal, and the circumstances under which the arrangement may be terminated.

[54 FR 30223, July 19, 1989]

Sec. 303.108 Quarterly wage and unemployment compensation claims reporting to the National Directory of New Hires.

     (a) What definitions apply to quarterly wage and unemployment compensation claims reporting? When used in this section:

     (1) Reporting period means time elapsed during a calendar quarter, e.g. January-March, April-June, July-September, October-December.

     (2) Wage information means:

     (i) The name of the employee;

     (ii) The social security number of the employee;

     (iii) The aggregate wages of the employee during the reporting period; and

     (iv) The name, address (and optionally, any second address for wage withholding purposes), and Federal employer identification number of an employer reporting wages.

     (3) Unemployment compensation or claim information means:

     (i) Whether an individual is receiving, has received or has applied for unemployment compensation;

     (ii) The individual's name and current (or most recent) home address;

     (iii) The individual's social security number; and

     (iv) The aggregate gross amount of compensation the claimant received during the reporting quarter.

     (b) What data must be transmitted to the National Directory of New Hires?

     The State shall disclose quarterly, to the National Directory of New Hires, wage and claim information as defined in paragraph (a) of this section that is collected pursuant to a State's unemployment compensation program referenced in Title III of the Act or pursuant to section 1137 of the Act.

     (c) What time frames apply for reporting quarterly wage and unemployment compensation claims data?

     The State shall report wage information for the reporting period no later than the end of the fourth month following the reporting period. The State shall report claim information for the reporting period no later than the end of the first month following the reporting period.

     (d) What reporting formats will be used for reporting data?

     The State must use standardized formats established by the Secretary of Health and Human Services for reporting wage and claim information.

[63 FR 36190, Jul. 2, 1998]

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