§ 31-25-4-31 — Data match system with financial institutions to block account with child support lien

Indiana § 31-25-4-31

• Jurisdiction: Indiana
• Art. 25: CHILD SERVICES: ADMINISTRATION
• Ch. 4: Child Support Provisions of Title IV-D of the Federal

Text

(a) The bureau shall operate a data match
system with each financial institution doing business in Indiana.
(b) Each financial institution doing business in Indiana shall provide
information to the bureau on all noncustodial parents who:
(1) hold one (1) or more accounts with the financial institution;
and
(2) are delinquent.
(c) In order to provide the information required under subsection
(b), a financial institution shall either:
(1) identify noncustodial parents by comparing records
maintained by the financial institution with records provided by
the bureau by:
(A) name; and
(B) either Social Security number or tax identification number;
or
(2) submit to the bureau a report, in a form satisfactory to the
bureau, that includes the Social Security number or tax
identification number of each individual maintaining an account
at the financial institution. The reports submitted under this
subdivision must be accessible to:
(A) the department of state revenue established by IC 6-8.1-2-1
or its agents for use only in tax judgment and levy
administration described in IC 6-8.1-8-8.7(b)(2); or
(B) the department of workforce development established by IC 22-4.1-2-1 or its agents for use only in the collection of unpaid
final assessments described in IC 22-4-29-14(b)(2).
(d) The information required under subsection (b) must:
(1) be provided on a quarterly basis; and
(2) include the:
(A) name;
(B) address of record; and
(C) either the Social Security number or tax identification
number;
of an individual identified under subsection (b).
(e) When the bureau has determined that the information required
under subsection (d)(2) is identical for an individual who holds an
account with a financial institution and an individual whose name
appears on the quarterly list prepared by the bureau under section 30
of this chapter, the bureau shall provide a notice of the match if action
is to be initiated to block or encumber the account by establishing a
lien for child support payment to the:
(1) individual; and
(2) financial institution holding the account.
(f) The notice under section (e) must inform the individual that:
(1) the individual's account in a financial institution is subject to
a child support lien; and
(2) the individual may file an appeal with the bureau within
twenty (20) days after the date the notice was issued.
(g) The bureau shall hold a hearing under 465 IAC 3-3. The
department's final action following a hearing held under this subsection
is subject to judicial review as provided in 465 IAC 3-3.
(h) The state's lien on assets under this section is subordinate to any
prior lien perfected by:
(1) a financial institution; or
(2) another legitimate lien holder.
(i) A lien issued under this section remains in effect until the earliest
of:
(1) one hundred twenty (120) days after issuance;
(2) the date the asset on which the lien is issued is surrendered; or
(3) the date the lien is released by an action of the bureau.
(j) This section does not preclude a financial institution from
exercising its right to:
(1) charge back or recoup a deposit to an account; or
(2) set off from an account held by the financial institution in
which the noncustodial parent has an interest in any debts owed
to the financial institution that existed before:
(A) the state's lien; and
(B) notification to the financial institution of the child support
delinquency.
(k) A financial institution ordered to block or encumber an account
under this section is entitled to collect its normally scheduled account
activity fees to maintain the account during the period the account is
blocked or encumbered.
(l) All information provided by a financial institution under this
section is confidential and is available only to the bureau or its agents
for use only in child support enforcement activities.
(m) A financial institution providing information required under this
section is not liable for:
(1) disclosing the required information to the bureau, the
department of state revenue established by IC 6-8.1-2-1, or the
department of workforce development established by IC 22-4.1-2-1;
(2) blocking or surrendering any of an individual's assets in
response to a lien imposed by:
(A) the bureau under this section; or
(B) a person or entity acting on behalf of the bureau; or
(3) any other action taken in good faith to comply with this
section.
(n) The department shall pay a financial institution performing the
data match required by this section a reasonable fee for providing the
service that does not exceed the actual cost incurred by the financial
institution.
(o) This section does not prevent the bureau or its agents from
encumbering an obligor's account with a financial institution by any
other remedy available for the enforcement of a child support order.

Legislative History

As added by P.L.145-2006, SEC.271. Amended by P.L.103-2007, SEC.47; P.L.138-2008, SEC.7; P.L.123-2014, SEC.10.