N.J. Admin. Code § 10:110-15.2

Current through Register Vol. 56, No. 8, April 15, 2024

Section 10:110-15.2 - Child support enforcement remedies

(a) Available enforcement remedies shall include, but are not limited to:

1. Provisions concerning income withholding are as follows:

i. Orders established or modified on or after November 1, 1990 shall be subject to income withholding, regardless of whether support payments are in arrears, unless the parties demonstrate, and the court finds, that there is good cause not to require immediate income withholding or both parties sign a written agreement that provides for an alternative arrangement.

(1) Regardless of any alternative arrangement, the non-custodial parent's income shall be subject to income withholding on the date the non-custodial parent fails to make support payments in an amount equal to or exceeding the support due for 14 calendar days or if the obligee, for good cause, or the obligor requests that withholding be initiated.

ii. Where the non-custodial parent is subject to immediate income withholding, a notice to the non-custodial parent's employer directing the employer to withhold the current child support amount, and if appropriate, an additional sum to be applied to any past-due support owed by the non-custodial parent shall be sent within two business days after the date verified employment information regarding a non-custodial parent is entered into the automated child support system.

iii. If there is more than one child support withholding against the same obligor, the total amount withheld from the obligor's income shall be allocated among all obligees on a prorated basis.

(1) The withheld amounts shall first be applied to the current support obligations for all obligees.

(2) The withheld amounts that remain after all current support obligations are satisfied shall be allocated among all the obligees to pay past-due support in accordance with Federal distribution requirements.

iv. Employers shall be provided with the option of sending amounts to one location, the State Disbursement Unit, through Electronic Funds Transfer (EFT).

v. Employers identified through the automated matching with the State New Hire Directory shall be issued an income withholding notice within two business days.

2. Unemployment compensation benefits intercept provisions are as follows:

i. Under the State Unemployment Garnishment Agreement with the New Jersey Department of Labor and Workforce Development, the unemployment benefits of non-custodial parents who owe past-due support shall be withheld in accordance with 45 C.F.R. 302.65.

3. Workers compensation benefits intercept provisions are as follows:

i. The workers compensation benefits of non-custodial parents who owe past-due support shall be subject to income withholding.

4. Financial institution data match (FIDM) provisions are as follows:

i. The OCSS, in accordance with N.J.S.A. 2A:17-56.53 and 2A:17-56.57 et seq., shall conduct both in-State and multistate FIDM to identify assets of non-custodial parents held in financial institution accounts or in accordance with this subsection and Federal law at 42 U.S.C. § 666(a)17. The OCSS has authority to enter into cooperative alliances with other states for purposes of obtaining FIDM information.

(1) Each financial institution doing business in the State shall enter into agreement with the Department or its designee for purposes of child support financial institution data matches. However, any financial institution doing business in more than one state can elect to provide its match data to the Federal Office of Child Support Enforcement (OCSE) for subsequent transmission to OCSS under the Multistate Financial Institution Data Match program (MSFIDM).

(2) Each financial institution shall provide information on all NCPs who maintain an account at the financial institution and who owe past due child support that equals or exceeds the amount of the current support obligation payable for three months or the amount of $ 500.00 in an arrears-only case and for which no regular payments are being made.

(A) As used in this sub-subparagraph, "regular payments" is defined as a payment of the full monthly support order, including any required arrears repayment amount due for the month. Past-due spousal support is only eligible when the obligee is living with the child and the spousal support and child support obligations are included in the same order.

(3) Pursuant to an agreement entered into with the Department, information from a financial institution doing business in this State (except for multistate financial institutions reporting directly to the Federal OCSE as permitted in (a)4i(1) above) can be provided by:

(A) All accounts method. The financial institution shall provide OCSS with a file that includes the name, address of record and either Social Security number, tax identification number or other identifying information of each individual maintaining an account at the financial institution as shown on its records for OCSS to match against its data base;

(B) Matched accounts method. OCSS shall provide the financial institutions with information of child support debtors meeting the criteria in (a)4i(1) above for the financial institutions to match against their account records and the financial institutions shall report any matches to OCSS; or

(C) Other mutually agreed upon method. The financial institution shall provide OCSS the name, address of record and either Social Security number, tax identification number or other identifying information in a form and by a method mutually agreeable to the financial institution and the Department.

(4) Financial institutions shall provide the information required on a quarterly basis, by electronic or magnetic media, mail, facsimile or any automated data exchange method or other means authorized by the Department.

(5) Financial institutions may be paid a reasonable fee for the data match. To the extent consistent with Federal and State law, financial institutions shall be reimbursed for actual costs that are reasonably and efficiently incurred in conducting the data match.

(6) No financial institution-affiliated party shall be required to provide information required by this section if the financial institution with which the party is affiliated has otherwise provided the required information.

ii. Provisions concerning action to be taken where there is a match as identified at (a)4i above are as follows.

(1) In response to a lien or a levy, a financial institution shall encumber or surrender assets of an obligor who is the subject of a child support lien, held by the financial institution. If the account is closed, has less than $ 100.00, or is such that assets are not subject to levy for purposes of child support pursuant to Federal or State law, the financial institution shall provide notice to OCSS. Accounts with less than $ 100.00 are not subject to levy.

(2) All the levies for accounts at a particular financial institution shall be sent to the financial institution by OCSS.

(A) The financial institution shall freeze each account levied immediately.

(B) The financial institution shall remit the funds as directed in the notice or letter that the financial institution receives from OCSS.

(C) The amount subject to levy in a joint account, as defined in section 2 of P.L. 1979, c.491 (N.J.S.A. 17:161-2), shall be in accordance with the provisions of section 4 of P.L. 1979, c.491 (N.J.S.A. 17:161-4).

(3) OCSS shall provide notices and/or letters to financial institutions through electronic correspondence, mail, facsimile, automated data exchange method, or other means authorized by the Department.

iii. Notice of intent to levy an account and the right to challenge the levy shall be provided by OCSS to the accountholder at the address of record on the automated child support system and to the financial institution customer address of record.

(1) The accountholder shall have 30 calendar days following the notice's postmark date to contest the levy by writing to the OCSS to request an administrative contest review for limited circumstances as follows:

(A) Mistaken identity;

(B) Incorrect arrearage amount;

(C) Bankruptcy status;

(D) Joint account issues;

(E) Because litigation of support has been filed and is pending resolution in the appropriate court of jurisdiction; or

(F) Extreme hardship.

(2) When the request is made timely (that is, within the 30-calendar day period from the postmark date of the notice) and accompanied by the required documentation for contest, upon receipt of the request or of the required documentation, a review by the OCSS shall take place within 10 calendar days from the stamped date of receipt by the OCSS of the request for contest. Certain cases, based on circumstances, may require additional review beyond the standard 10-day review. Expedited review may occur in hardship cases involving homelessness, job loss, physical incapacitation or severe financial hardship as determined by OCSS.

(3) The assets shall be held and not distributed to any party until the contest period has expired or while an action on these assets is pending in court.

iv. Disclosure of information provisions are as follows:

(1) A financial institution shall not be liable under any Federal or State law, notwithstanding any other provision of Federal or State law to the contrary, to any person for any disclosure of information to the Department for the purpose of establishing, modifying, or enforcing a child support obligation of an individual, or for encumbering, holding, refusing to release to the obligor, or surrendering any assets held by the financial institution, in response to a notice or letter issued by the Department, or for any other action taken in good faith to comply with the requirement at P.L. 1998, c. 1.

(2) In obtaining a financial record of an individual from a financial institution, the Department may only disclose the financial information for the purpose of, and to the extent necessary to establish, modify or enforce a child support obligation of the individual.

(3) If any officer or employee of the Department knowingly, or by reason of negligence, discloses a financial record of an individual, the injured individual may bring a civil action for damages against the officer or employee. Unauthorized release of information shall also be cause for administrative discipline of any employee who engages in an unauthorized release. In the case of willful unauthorized release of information, such action by an employee shall be cause for termination of employment.

(4) No liability shall arise under this section with respect to any disclosure that results from a good faith but erroneous interpretation.

v. Account seizure provisions are as follows:

(1) A review of matched information reports identifying non-custodial parents meeting the selection criteria of this subsection, that have been matched to accounts in financial institutions, is conducted by the OCSS before any notice of levy is issued.

(2) Pursuant to administrative enforcement of intergovernmental cases (10:110-5.3), when the OCSS is the assisting state, the OCSS shall accept and process intergovernmental requests to freeze and seize assets.

(3) OCSS may determine not to levy an account on the basis of applicable exemption factors. Certain identified accounts may be considered or be protected under other Federal or state statutes, regulations, or court rules; or a non-custodial parent may, for legal or practical reasons, be exempt from levy.

(4) OCSS will use, to the maximum extent practicable, automated processes to identify and prevent the garnishment of funds from NCPs that are recipients of Supplemental Security Income (SSI) payments pursuant to Title XVI of the Federal Social Security Act (42 U.S.C. §§ 1381 et seq.), or concurrent SSI payments and Social Security Disability Insurance (SSDI) benefits or Social Security Retirement benefits pursuant to Title II of the Federal Social Security Act (42 U.S.C. §§ 401 et seq).

(5) If OCSS determines that SSI payments or concurrent SSI payments and SSDI benefits or Social Security Retirement benefits pursuant to Title II of the Federal Social Security Act have been incorrectly garnished from the NCP's financial account, they shall return the funds to the NCP within five business days.

5. Federal income tax refund intercept provisions are as follows:

i. Cases shall be submitted by the OCSS to the Federal Office of Child Support Enforcement for Federal income tax refund intercept in accordance with 45 C.F.R. 303.72 and instructions issued by the Federal Office of Child Support Enforcement.

ii. The Federal Office of Child Support Enforcement shall issue notices to all parties for whom cases are submitted by the OCSS for Federal income tax refund intercept.

6. Lottery winnings intercept provisions are as follows:

i. Under the State Lottery Intercept Agreement with the New Jersey Department of the Treasury, the Social Security number of lottery winners whose winnings are in excess of $ 600.00, shall be electronically matched with the Social Security number of non-custodial parents who owe past-due support for possible interception.

ii. A notice shall be sent to the obligor advising of the OCSS's intent to intercept the lottery winnings. The notice shall include:

(1) The amount of past support owed;

(2) Notification that an appeal based on a mistake of fact must be made in writing within 10 business days of the date of the notice to the OCSS;

(3) Notification that if no appeal is received within 10 business days, the past due amount indicated on the notice shall be withheld and applied to the child support debt; and

(4) Notification that any excess lottery winnings shall be sent directly to the obligor by the Division of Lottery.

iii. A Title IV-D obligor who has been determined delinquent shall be prohibited from assigning an annuity award.

7. License suspension, revocation, or denial provisions are as follows:

i. Driver's, professional, occupational, recreational, or sporting licenses held or applied for by a delinquent obligor may be suspended, revoked, or denied in accordance with N.J.S.A. 2A:17-56.41.

8. Credit bureau reporting provisions are as follows:

i. A notice shall be sent to the obligor if past-due support is owed. The notice shall inform the obligor that the following information shall be reported to the credit-reporting agency:

(1) The obligor's name;

(2) The obligor's Social Security number; and

(3) The debt amount.

ii. The notice shall:

(1) Be sent to the obligor's last known address by first class mail;

(2) Specify the amount of the past-due support the obligor owes;

(3) Advise of the intention to notify the credit reporting agency of the amount of past-due support; and

(4) Notify the obligor that a court hearing can be requested on the issue within 10 calendar days of the date on the notice by sending a written request for a hearing.

iii. If the obligor requests a hearing within the 10-day time period, the request shall be forwarded to the AOC for appropriate action in accordance with established court procedures.

iv. In cases where OCSS is requesting a consumer report from a credit reporting agency for the purpose of establishing a non-custodial parent or alleged father's capacity to make child support payments, notice shall be sent to the obligor by regular and certified mail 10 days prior to requesting such information from a credit reporting agency.

9. IRS full collection provisions are as follows:

i. Applications for full collection by the Internal Revenue Service (IRS) shall be submitted on both public assistance and non-public assistance cases in accordance with 45 C.F.R. 303.71. In non-public assistance cases, the custodial parent shall pay the amount of the fee charged by the IRS for full collection services with submittal of the application. For WFNJ/TANF cases, the CWA/CSU shall be billed a collection fee in accordance with prevailing costs for each application certified by the U.S. Department of Health and Human Services.

10. Set-Off of Individual Liability Program (SOIL) provisions are as follows:

i. Cases for offset shall be submitted by the OCSS to the New Jersey Set-Off of Individual Liability Program (SOIL) pursuant to 18:35-10.3.

(1) Cases submitted under this Program shall meet the following criteria:

(A) There shall be a court order issued by a court of competent jurisdiction for child support, or an administrative order, or a judgment; and

(B) The delinquent amount owed shall be greater than the monthly support obligation in order to qualify for selection for SOIL. The selection amount for the submittal of arrears only cases to SOIL is a threshold of $ 25.00.

(2) Cases shall be submitted at least once per year via magnetic tape in accordance with specifications issued annually.

(3) The Division of Taxation shall be responsible for notifying all taxpayers whose refunds or rebates are subject to offset due to past-due child support. The notification shall state:

(A) The taxpayer has 35 calendar days from the date of the notice to file an appeal with the OCSS;

(B) All inquiries or appeals regarding the offset of their State Income Tax/Homestead/Saver Rebate shall be directed to OCSS; and

(C) The manner in which appeals are resolved shall be made by the OCSS.

(4) In situations where an appeal is received and the obligor and his or her employed spouse may have filed a joint return and the spouse is not responsible for the child support debt, the appeal, together with supporting documentation, shall be forwarded to OCSS for resolution.

(A) Where the obligor's appeal challenges the amount of arrearages, OCSS shall place the case on appeal status and refer the case to the AOC for resolution.

11. Judgment for child support lien against net proceeds provisions are as follows:

i. Upon resolution of any civil judgment, civil arbitration award, lawsuit, inheritance or worker's compensation award where a beneficiary or prevailing party is entitled to receive a monetary award or settlement the provisions of N.J.S.A. 2A:17-56.2 3b shall apply.

12. Passport Denial Program provisions are as follows:

i. Cases shall be certified by the OCSS to the Secretary of the U.S. Department of Health and Human Services for the possible denial, revocation, or limitation of delinquent obligors' passports, pursuant to 42 U.S.C. § 652(K).

(1) Cases shall be submitted as part of the Federal Intercept process. However, only obligors who owe past-due child support meeting the Federally established criteria shall be considered for the Passport Denial Program.

(A) Notice to the obligor of the intent to deny, suspend, or revoke a passport, shall be provided by the Federal Office of Child Support Enforcement.

(2) Past-due spousal support is only eligible for denial, revocation, or limitation of an obligor's passport when the obligee is living with the child and the spousal support and child support obligations are included in the same order.

(3) Notwithstanding a granted contest, full payment of the support arrears amount, including spousal support arrears, shall be due to remove an obligor from the Passport Denial Program.

ii. The obligor shall have the right to contest the denial, revocation, or limitation of their passport by contacting OCSS.

iii. OCSS shall grant or deny passport denial contests with assistance from local child support staff, as needed.

(1) The bases to contest the passport denial are:

(A) Mistaken identity;

(B) Incorrect arrears amount; or

(C) Exceptional circumstances, including, but not limited to:

I. Death of an immediate family member;

II. Terminal illness or medical treatment for the obligor or an immediate family member;

III. Current or potential employment-related travel; or

IV. Extreme financial hardship.

(2) OCSS shall review the contest of passport denial, revocation, or limitation and may request additional information from the obligor within 10 calendar days from the receipt of the contest request. Such additional information may include a death certificate, obituary, letter from medical provider, letter from current or potential employer, benefit award letter, pay stubs and tax returns, or 1099 form.

(3) In the event that a contest is granted due to exceptional circumstances, OCSS has sole discretion to approve and accept payment that is less than the full arrears amount.

(A) Upon confirmation of the accepted payment amount from the obligor, OCSS shall take the necessary steps to remove the obligor from the Passport Denial Program. Obligors with remaining qualifying arrears will continue to be eligible for the Passport Denial Program.

(B) The obligor may be required to undertake additional action to obtain a passport or remove the limitation on a passport through the Federal Office of Child Support Enforcement or the U.S. Department of State. The obligor may incur additional passport processing fees at their own cost.

13. Uniform Fraudulent Transfer Act provisions are as follows:

i. In any case where a transfer by a child support judgment debtor is in violation of the Uniform Fraudulent Transfer Act, 25:2-20 et seq., is known and a prima facie case is established, the CWA/CSU shall seek to void the transfer or obtain a settlement in the best interest of the child support creditor.

14. Work requirement provisions are as follows:

i. In cases where a child is receiving assistance under a State program funded under TANF, or in non-public assistance cases when the non-custodial parent is past-due in support, and the provisions of 10:110-5.4(b)1 through 4 apply, the probation division is authorized to petition the court to issue an order that requires the obligor to:

(1) Pay the support in accordance with a plan approved by the court; and/or

(2) Participate in work activities as ordered by the court.

N.J. Admin. Code § 10:110-15.2

Amended by 48 N.J.R. 490(b), effective 2/22/2016

Amended by 50 N.J.R. 563(a), effective 1/16/2018

Amended by 55 N.J.R. 1179(a), effective 6/5/2023