Enforcement
When the responsible parent fails to meet the child support obligation, the Child Support Enforcement Agency (CSEA) takes action to enforce the order of support. Federal and State laws provide the agency with a variety of enforcement remedies to encourage or force compliance with the order. Most enforcement activities are automatically initiated by the state’s automated child support system (KEIKI). The custodial parent does not need to contact the agency to request enforcement. The following are the enforcement tools available to CSEA:
Income Withholding
Federal and State laws provide for improved enforcement remedies including mandatory income withholding and expedited processes for establishing and enforcing child support orders, whether or not there is an arrearage owed. Because it taps the non-custodial parent’s income at the source and becomes a regularly deducted item, withholding has proven to be a very effective tool for enforcing child support obligations.
An Order or Notice to Withhold Income for Child Support is served on the Non-Custodial Parent’s employer. The employer is required to begin deducting child support payments from their employee’s wages or benefits and forward the amount to the CSEA. The CSEA works with the State of Hawaii’s Department of Labor and Industrial Relations to withhold child support from unemployment benefits that a non-custodial parent (NCP) qualifies to receive.
If you are an employer, the Hawaii Employer’s Guide Income Withholding for Child Support Obligations summarizes your legal responsibility as an employer,
For more information see:
Section 576D-14, Hawaii Revised Statutes
State Tax Refund Setoff
The State Tax Refund Setoff Program collects past-due child support payments from the State tax refunds of parents who have been ordered to pay child support. Hawaii Revised Statute 231-51 to 231-53 allows the CSEA to setoff the State income tax refunds of those non-custodial parents (NCP) who are delinquent in the payment of child support. The debt may include delinquency in child support, medical support, and spousal support when ordered in conjunction with child support.
Cases eligible for the tax refund setoff are those cases receiving full services through CSEA that have a delinquent child support debt. CSEA uses the following criteria for State tax refund setoff:
- The agency has the non-custodial parent’s correct Social Security number.
- The past-due amount must be at least $25.00.
- In non-assistance cases, the past-due amount must be in an amount equal to or exceeding the sum of payments which would become due over a one month period.
When a case meets this criteria, the Pre-Setoff Notice is sent to the NCP. The notice provides information about how to contest the debt amount.
When a setoff occurs, a Notice of Proposed Tax Refund Setoff is sent to the NCP. This notice explains that the non-custodial parent has 30 days in which to request an administrative hearing to contest the setoff. Administrative hearings officers from the Office of Child Support Hearings will issue a decision on the proposed setoff.
The setoff of state tax refunds for delinquent child support can only be made against the person responsible for the payment of the support, the debtor. The non-debtor spouse (NDS) may request a refund of his/her portion of the tax refund by sending a request to the agency. Since the agency will calculate the NDS portion of the tax refund, copies of the filed Hawaii income tax return and all W-2 forms must be included with the request. The agency will notify the NDS whether he/she is entitled to a refund.
For more information go to:
Section 231-51 to 231- 53, Hawaii Revised Statutes
Federal Tax Refund Offset
The Federal Tax Refund Offset Program collects past-due child support payments from the Federal tax refunds of parents who have been ordered to pay child support. The program is a cooperative effort between the Office of Child Support Services (OCSS), the Internal Revenue Service (IRS), the Financial Management Service (FMS) of the Department of Treasury, and the State Child Support Enforcement agencies.
Under this offset program, the federal tax refunds of non-custodial parents (NCPs) are intercepted, and sent to the Child Support Enforcement Agency (CSEA) to pay past-due child support owed to the state or to the custodial parents (CPs).
Cases eligible for tax refund offset are those cases receiving full services through CSEA that have a delinquent child support debt. CSEA uses the following criteria for Federal tax refund offset:
- The agency has the non-custodial parent’s correct Social Security number.
- If the past-due amount is owed to the custodial parent the amount must be $500 or more; the custodial parent’s address is known.
- If the child(ren) received public assistance, past-due support may be owed to the state. If the amount is owed to the state, the past-due amount must be $150 or more.
Non-custodial parents whose past-due child support debts meet the criteria for Federal Tax Refund Offset receive a Pre-Offset Notice explaining the process. The notice includes an initial debt amount – the amount of past-due child support owed at the time the notice is sent. The actual amount deducted form the tax refund may be different, because of payment or non-payment of child support after the Pre-Offset Notice is mailed. The state will update the debt amount regularly, but may not issue a new notice each time the debt changes. The Pre-Offset Notice also includes information about the Administrative Offset and Passport Denial programs, and other actions the state may take to enforce a child support obligation. The notice will also include information about how to contest the debt amount.
When tax refunds are processed, those who owe past-due support are identified. If a refund is due, all or part of the refund is intercepted and forwarded through OCSS to the state CSE agency, to repay the past-due support debt.
At the time of the Federal Tax Refund Offset, FMS mails a Notice of Offset to the debtor stating that all or part of the Federal tax refund has been intercepted (offset) because of the child support debt owed. The notice will advise the non-custodial parent to contact the local child support agency for further information.
It normally takes three to five weeks from the time of the offset until the money is sent to the state that submitted the case for offset. When the Child Support Enforcement Agency receives a tax refund from the Internal Revenue Service, the law requires that it be applied to past-due support owed to the state first.
For more information go to:
Federal Tax Refund Offset Program (Office of Child Support Services)
Administrative Offset
Administrative Offset allows for the intercept of certain federal payments in order to collect past-due child support. Based on the Debt Collection Improvement Act (DCIA) of 1996, the process is managed by the Office of Child Support Services (OCSS), through the Financial Management Service (FMS) of the Department of Treasury, in conjunction with the Federal Tax Refund Offset Program.
Various types of payments are available for Administrative Offset. They include both recurring and one-time payments. Types of payments that can be intercepted include payments to private vendors who perform work for a government agency, federal retirement payments, and relocation and travel reimbursements owed to federal employees.
Some payments cannot be intercepted through this program. They include Veterans Affairs (VA) disability benefits, federal student loans, some Social Security payments, Railroad Retirement payments, Black Lung benefits, and payments made under certain programs based on financial need, such as Supplemental Security Income (SSI).
States must submit to OCSS those cases that meet the criteria for the Federal Tax Refund Offset Program. The states use the same process to submit to the Administrative Offset Program. When a match occurs between the records of persons who owe child support debts and the payment records for federal payees, FMS will seize the amount and transmit it to the state, through OCSS. FMS will also send a notice to the non-custodial parent explaining the type of offset that occurred and referring him or her to the appropriate local support agency for further information.
Unlike funds from Federal Tax Refund Offsets that must first be applied to any state debt, Administrative Offset funds are first applied to any debt owed to the family. Any remainder is kept by the state to pay a child support debt owed to the state because the family received public assistance.
For more information go to:
Administrative Offset Program (Office of Child Support Services)
Passport Denial Program
Another tool provided to state and federal government by the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) is Passport Denial. PRWORA requires the Secretary of State to refuse to issue a passport to any person certified by the Secretary of the Department of Health and Human Services (DHHS) as owing child support debt greater than $2,500. Further, the Secretary of State may take action to revoke, restrict, or limit a passport previously issued to an individual owing such a child support debt.
All cases receiving full child support services through CSEA are eligible for passport denial. Persons who owe child support debts greater than $2,500 will be sent a passport denial Pre-Offset Notice, which also includes information about the Federal Tax Refund and Administrative Offset programs.
Through the Federal Offset process, states submit to the Office of Child Support Services (OCSS) those cases that meet the criteria for Federal Tax Refund and/or Administrative Offsets. When a state submits a case with arrears exceeding $2,500, OCSS automatically forwards that case to the State Department for passport denial unless the case has been specifically excluded from the Passport Denial Program.
When an individual applies for a passport, the State Department denies the application based on the child support obligation owed by the applicant. When the State Department denies an application for a passport, a notice is sent to the non-custodial parent explaining that the passport application was denied because of delinquent child support, and advising the applicant to contact the appropriate state child support enforcement agency, listed on the notice, for further information.
Obligors are not automatically removed from the Passport Denial Program when the debt drops below $2,500. The decision to remove an obligor is based on State policies and procedures. Hawaii has a “0” balance policy which requires that the child support account be brought current before removal from the program. If more than one state reported a delinquency in excess of $2,500, the obligor must contact all states involved in order for the passport to be released.
Once the debt has been satisfied, the state will request that OCSS remove the obligor from the passport denial process. It takes approximately two weeks from the time OCSS receives a request for removal for the State Department to withdraw the passport denial. After the denial of the passport has been withdrawn, the obligor must reapply for the passport and pay any accompanying fees. Fees are not refunded when the passport application is denied.
For more information go to:
Passport Denial Program (Office of Child Support Services)
U.S. Department of State – Passports
Financial Institution Data Match (FIDM)
Public Law 104-193, the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA), also known as the Welfare Reform Act, was signed into law on August 22, 1996. One provision of PRWORA requires all states to enter into agreements with financial institutions conducting business within their state for the purpose of conducting a quarterly data match. This data match is intended to identify accounts belonging to parents who are delinquent in their child support obligation. When a match is identified, state child support programs may issue liens or levies on the accounts of that delinquent obligor to collect the past-due child support. This whole process is referred to as the Financial Institution Data Match program, or, more commonly, “FIDM”.
Single-State Financial Institutions: Every state is required by law to enter into agreements with financial institutions doing business within their state to develop and perform a quarterly data match for the purpose of collecting delinquent child support obligations. Financial institutions will fall into one of two categories: single-state or multistate. A single-state financial institution is one that conducts business solely within one state. These institutions are generally smaller, independent banks, credit unions, and savings and loans which operate within a single state. Multistate financial institutions, on the other hand, operate in two or more states.
Multistate Financial Institutions: With the recent trend in mergers more financial institutions are operating in multiple states. The Financial Institution Work Group, which was formed by the federal government to develop the FIDM program, noted that the task of matching files submitted by many states appeared to be arduous, time consuming and costly to those financial institutions operating in two or more states. To alleviate these concerns and facilitate timely data matches, Public Law 105-200 added provisions to Title IV-D of the Social Security Act which allows the Office of Child Support Services (OCSS), through the Federal Parent Locator Service (FPLS), to assist states in conducting data matches with multistate financial institutions.
Financial institutions that do business in multiple states may choose not to participate in OCSS’s Multistate Financial Institution Data Match Program. Instead, these financial institutions have the option of participating with the individual states.
The direct exchange of information between the state child support program and the financial institution is commonly referred to as the “in-state” method, while the exchange of information that involves OCSS and the multistate financial institutions is commonly referred to as the “MSFI” method.
In-State Data Match:
States are required to offer two reporting methods to in-state financial institutions: Method One (the all accounts method) and Method Two (the matched accounts method).
Method One: Financial institutions submit a file identifying all open accounts to the state child support program. The child support program conducts an internal match against delinquent obligors.
Method Two: The state child support program submits an inquiry file, containing delinquent obligors, to the financial institutions. The financial institution conducts an internal match against its open accounts. The financial institution sends a match file to the child support program reporting information on all accounts maintained by individuals on the state inquiry file. The child support program may issue liens or levies to attach and seize the asset(s) of the delinquent obligor.
MSFI Data Match:
Currently, states and territories send OCSS the Federal Offset File (used to intercept the Federal tax refunds and other federal payments of delinquent obligors). OCSS will edit this file (to assure SSN integrity and to remove duplicate records) and transmit records of obligors identified for FIDM to multi-state financial institutions who have chosen to conduct the match through OCSS. MSFIs will conduct an internal match against their open accounts. MSFIs will transmit a file to OCSS reporting information on all accounts maintained by individuals on the inquiry file. OCSS will transmit the data returned from the financial institutions to the appropriate states. The state child support program may issue liens or levies, in a manner consistent with state law, to attach and seize the asset(s) of the delinquent obligor.
Financial Institutions in Hawaii:
All financial institutions in Hawaii participating in the FIDM program have elected the in-state method and Method Two.
For more information go to:
Financial Institution Data Match – (Office of Child Support Services)
Credit Bureau Reporting
Like license suspension and passport denial, credit bureau reporting does not directly affect the NCP’s income or asset, but gives the NCP a strong incentive to comply with the order of support. Section 576D-6 of the Hawaii Revised Statutes and Title 5-31-29 of the Hawaii Administrative Rules provides the Child Support Enforcement Agency with the authority to give information regarding delinquent accounts to any consumer reporting agency (credit bureau).
Before the delinquent child support balance is reported to the credit bureau, the NCP is given a notice of the proposed release of information and provided an opportunity to request a hearing within 14 days to contest the agency’s action. The CSEA uses an administrative process where administrative hearings officers from the Office of Child Support Hearings issue decisions relating to the enforcement of a child support orders.
For more information go to:
Section 576D-6, Hawaii Revised Statutes
Department of the Attorney General, Office of Child Support Hearings
Liens
Support orders initiated through the administrative process by the CSEA or issued through the judicial process by the offices of the corporation counsel, the county attorneys, and the Department of the Attorney General are recorded with the Bureau of Conveyances (BOC). The BOC is the state office that is responsible for maintaining an accurate, timely, and permanent record system for title to real property.
Support orders issued by private attorneys are also recorded with the BOC when an application for services is received and obligor becomes delinquent in the payment of support.
For these support orders recorded with the BOC, a lien is created when the Non-Custodial Parent (NCP) becomes delinquent in his or her support payments or when an order of support for a prior period (arrears order) is established. The lien attaches to all interests in real property owned or subsequently acquired by the NCP.
If the NCP requires the lien to be released as a condition of selling, buying, or refinancing real property, payment must be made to bring the account current before a certificate of release of the lien can be issued by the CSEA. The CSEA will only issue certificates of release for those orders recorded by the CSEA or its designated representatives.
When requesting a certificate of release, the following information is necessary:
- A written request.
- If the request is not from the NCP, an authorization to release information to the individual or company signed by the NCP or other party involved in the support order.
- A copy of the recorded documents that created the lien. The BOC document number; BOC recording date, the order docket number and order filing date should be legible.
- (Optional) Companies that are requesting a certificate of release on behalf of the NCP may include a lien statement or report to ensure that all liens which need to be released are provided and to confirm the recordation number and date of recording when faxed information is not clear
The certificate of release is filed by the CSEA with the Family Court of the circuit where the order was entered. Certified copies of the filed release are sent to the NCP and to the company requesting the release, as appropriate. The NCP is responsible for recording the release with the BOC. Although in many instances, the escrow or title companies will record the release on behalf of the NCP.
For more information go to:
Section 576D-10, Hawaii Revised Statutes
License Suspension Process
License suspension is an enforcement remedy that is used to compel non-custodial parents (NCP) into making support payments. Like credit bureau reporting and passport denial, license suspension action does not directly affect the NCP’s income or asset, but puts pressure on the NCP to make support payments so that the enforcement remedy is not put into place or so that the remedy can be removed. These types of remedies are different from the enforcement remedies such as income withholding and tax intercept that directly attaches to the NCP’s income or asset.
An NCP who is delinquent in payment in an amount equal to or greater than the sum of payments for child support for a three-month period is subject to having his/her driver’s license and/or recreational license(s) suspended. If the NCP is delinquent in payment in an amount equal to or greater than the sum of payments for child support for a six-month period, his/her professional and/or vocational license(s) is subject to being suspended.
Identifying NCPs who owe overdue child support for license suspension purposes is automatically initiated by the CSEA. On a quarterly basis, an extract of NCPs in cases that the CSEA is providing services for and that are delinquent in an amount equal to or greater than what is owed for a three-month period is created. Another extract of those NCPs who owe an amount equal to or greater than what is owed for a six-month period is also created at the same time. These extracts are then sent to the appropriate licensing authorities.
The licensing authorities match (either manually or electronically) by social security number, the individuals who hold or are applicants for licenses issued by their agency with the extract provided by the CSEA. A list is created of matched individuals that include the name, social security number, last known address on record with that agency, and the license type. The list of matched individuals is returned to the CSEA and is entered into the CSEA’s computer system. A report of the matched individuals is created.
These cases are then reviewed and assessed comprehensively before license suspension action is initiated. A determination is made as to whether the NCP is currently making payments, whether all court/administrative orders have been received by CSEA, and whether the amount owed still meets the criteria for license suspension. If license suspension is appropriate, the CSEA notifies the NCP that license suspension action has been initiated. The notice informs the NCP that unless he/she makes a request for hearing or contacts the CSEA to enter into a payment agreement within thirty (30) days, action will be taken to suspend his/her license(s).
If after thirty (30) days there is no response from the NCP or if a determination is made that the NCP’s license(s) should be suspended after a hearing has been held, the CSEA sends a Certification of Non-Compliance for License Suspension to the licensing authority to suspend the NCP’s license(s). Upon receipt of the certification, the licensing authority takes the appropriate action to suspend the individual’s license(s). A copy of the certification is also sent to the NCP.
If the NCP makes a request to enter into a payment agreement, the CSEA worker will prepare the necessary documents to formalize the terms of the agreement. As long as the NCP is meeting the terms of the agreement, no further action is taken to suspend the NCP’s license(s).
The CSEA will reinstate the license(s) of NCPs who are no longer delinquent and no longer owes any support arrears. The CSEA generates and sends an Authorization Canceling the Certification of Non-Compliance for License Suspension to the licensing authorities when the NCP becomes current in the payment of support. The licensing authority takes the appropriate action to reinstate the NCP’s license(s). A copy of the Authorization Canceling the Certification of Non-Compliance for License Suspension is also sent to the NCP.
For more information go to:
Section 576D-13, Hawaii Revised Statutes
Medical Support Enforcement
The Child Support Enforcement Agency (CSEA) is required to enforce the medical provisions of the support order. CSEA pursues private health care coverage when such coverage is available through a non-custodial parent’s employer at a reasonable cost.
CSEA uses the mandated standardized National Medical Support Notice (NMSN) to enforce the non-custodial parent’s medical support obligation. The NMSN was designed to assist employers, who in the past, received many different types of documents which required them to enroll the children of the non-custodial parent (NCP) in employer health insurance plans. The NMSN packet is actually four documents and instructions:
- Part A – Notice to Withhold for Health Care Coverage, is completed by CSEA and sent to notify the employer of the type of coverage required under the order.
- “Employer Response” is completed by the employer if health care coverage is not provided for employees; the NCP is not eligible for health care coverage; the NCP has been terminated; or if deduction for health care coverage cannot be made because of state and federal withholding limitations. If none of these reasons are applicable, Part B is forwarded to the Plan Administrator. The agency will notify the custodial parent that no health care coverage is available.
- Part B – Medical Support Notice to Plan Administrator notifies the plan administrator of the NCP’s obligation to provide health care coverage.
- “Plan Administrator Response” – Plan Administrator must: Enroll the children in a health care plan and notify the agency; send information if options exist; notify the employer so that payroll can make proper deductions.
The agency will send the health care coverage information to the custodial parent once the information is received.
For more information go to:
Medical Support – (Office of Child Support Services)