§ 46-408 — Assignment of support rights; priority; definitions

A. The assignment under section 46-407 is subject to all of the following:

1. Terminates with respect to current support when the person entitled to receive support is no longer receiving temporary assistance for needy families.

2. While receiving temporary assistance for needy families the assignment applies to any rights to support from any other person. Before October 1, 2009, the assignment applies to any support that accrued before receiving temporary assistance for needy families. On or after October 1, 2009, the assignment does not apply to any support that accrued before receiving temporary assistance for needy families.

3. Does not preclude enforcement of support in the name of the person entitled to receive support.

4. Does not bind any person who lawfully pays support to the person entitled to receive support.

5. Does not assign amounts that exceed the amount of temporary assistance for needy families paid to the person entitled to receive support to which the state is entitled to be reimbursed.

6. When the person entitled to receive support is not receiving temporary assistance for needy families, amounts paid for support shall be credited first to that month's current court ordered support up to an amount equal to the amount of the court order in effect at the time of payment and the excess, if any, shall be subject to the assignment.

7. The assignment applies to arrearages provided in the court order subject to the following priorities:

(a) If the person entitled to receive support is currently receiving temporary assistance for needy families, the state's claim for arrearages shall have priority over all other support claims except for current support.

(b) If the person entitled to receive support is not currently receiving temporary assistance for needy families, the state and the person entitled to receive support shall have a proportionate claim for any arrearages owed to the state and the custodial parent under a child support order. The arrearage payment shall be distributed on the total outstanding arrearage amount and the percentage of the total outstanding arrearage owed to the state and the person entitled to receive support.

B. Notwithstanding subsection A, paragraph 7 of this section, for distributions that occur or should have occurred beginning October 1, 1997, the department shall distribute support payments as prescribed in title IV-D of the social security act and its implementing regulations as follows:

1. Distribute to the family amounts not subject to the assignment.

2. Pay the federal government the federal share of the amount collected.

3. Retain the state share of the amount collected.

4. Retain payments collected through the federal income tax refund intercept program to the extent past due support has been assigned to the state. Any amount collected in excess of the past due support assigned to the state shall be distributed to the past due support owed to the family.

C. An obligee who disagrees with the distribution or disbursement of support payments pursuant to subsection B of this section may request an administrative review pursuant to section 25-522 within thirty business days after the date of the department's notice to the obligee of the distribution and disbursement of support received for the prior period.

D. In title IV-D cases, the department shall send written notice to the obligee regarding distribution and disbursement of support for the most recent quarter of the year. The obligee has thirty business days after the date of that notice to submit a written request for an administrative review. The department or its agent shall send a written notice of acknowledgment of receipt of request for administrative review to the obligee within ten business days after it receives a timely request for review. If the department or its agent needs additional information from the obligee to respond to the request for review, the department shall indicate this fact in writing. The department or its agent may also request information from other sources. The department or its agent shall issue a written determination not later than thirty business days after the date of the notice of acknowledgment of receipt of request for administrative review or, if additional information is required, not later than thirty business days after it receives this information. If additional information requested by the department or its agent is not received within thirty business days after the request for more information, the department or its agent shall issue a written determination within ten business days after the due date based on the information available. The department or its agent shall send a copy of the written determination to the obligee by first class mail.

E. The obligee shall make any appeal of the department's or its agent's determination in writing pursuant to title 41, chapter 14, article 3 and shall file it in the department's office of appeals within thirty business days after the date of the written determination. An obligee may appeal the department's final determination pursuant to section 41-1993.

F. A payment that is credited against past due support shall be applied first to principal and then to interest.

G. The department may adopt rules addressing interest and distribution of all monies received by the department in child support cases.

H. For the purposes of this section:

1. "Arrearage" has the same meaning prescribed in section 25-500.

2. "Business day" means a day on which state offices are open for regular business.

3. "Support" has the same meaning prescribed in section 25-500.