ENFORCEMENT OF SUPPORT OBLIGATION

CS 805P Financial Institution Data Matching

02/05/01 Revised 06/28/23 Training Completed 07/12/23 Last Reviewed 09/24/24

42 U.S.C. 666(a)(17); U.C.A. 26B-9-101, 104, 205, 208; R527-010

Introduction

Under Federal law 42 U.S.C. 666(a)(17), the Office of Recovery Services/Child Support Services (ORS/CSS) is required to implement and maintain a data match system with financial institutions for locating the assets of child support debtors. CSS conducts data matching with various in-state and out-of-state financial institutions. There are two programs that CSS receives matches from:

1. The Financial Institution Data Match (FIDM), which is in-state only institutions; and,

2. The Multi-State Financial Institution Data Match (MSFIDM), which is financial institutions who operate in more than one state.

The match information is placed on ORSIS and the responsible agent is notified by an alert. The agent may then make a determination whether to levy the noncustodial parent’s (NCP’s) financial assets based upon the criteria listed in CS 806P Notice of Lien/Levy, Financial Institutions - Overview.

Statutory Authority

Utah law found at Utah Code Annotated (U.C.A.) 26B-9-104(1)(g) states ORS has the duty “to enter into agreements with financial institutions doing business in the state to develop and operate, in coordination with such financial institutions, a data match system in the manner provided for in Section 26B-9-208.”

U.C.A. 26B-9-208 states:

(1) The office shall enter into agreements with financial institutions doing business in the state:

(a) to develop and operate, in coordination with such financial institutions, a data match system that:

(i) uses automated data exchanges to the maximum extent feasible; and

(ii) requires a financial institution each calendar quarter to provide the name, record address, social security number, other taxpayer identification number, or other identifying information for each obligor who:

(A) maintains an account at the institution; and

(B) owes past-due support as identified by the office by name and social security number or other taxpayer identification number; and

(b) to require a financial institution upon receipt of a notice of lien to encumber or surrender assets held by the institution on behalf of an obligor who is subject to a child support lien in accordance with Section 26B-9-205.

(2) The office may pay a reasonable fee to a financial institution for compliance with Subsection (1)(a), which may not exceed the actual costs incurred.

(3) A financial institution may not be liable under any federal or state law to any person for any disclosure of information or action taken in good faith under Subsection (1).

(4) The office may disclose a financial record obtained from a financial institution under this section only for the purpose of, and to the extent necessary in, establishing, modifying, or enforcing a child support obligation.

(5) If an employee of the office knowingly, or by reason of negligence, discloses a financial record of an individual in violation of Subsection (4), the individual may bring a civil action for damages in a district court of the United States as provided for in the Social Security Act, 42 U.S.C. Sec. 669A.

(6) The office shall provide notice and disburse funds seized or encumbered under this section in accordance with Section 26B-9-205.”

Definitions

1. Financial Institution – U.C.A. 26B-9-101(8) defines “Financial institution” as:

“(a) a depository institution as defined in Section 7-1-103 or the Federal Deposit Insurance Act, 12 U.S.C. Sec. 1813(c);

(b) an institution-affiliated party as defined in the Federal Deposit Insurance Act, 12 U.S.C. Sec. 1813(u);

(c) any federal credit union or state credit union as defined in the Federal Credit Union Act, 12 U.S.C. Sec. 1752, including an institution-affiliated party of such a credit union as defined in 12 U.S.C. Sec. 1786(r);

(d) a broker-dealer as defined in Section 61-1-13; or

(e) any benefit association, insurance company, safe deposit company, money-market mutual fund, or similar entity authorized to do business in the state.”

2. Personal property:

a. Tangible property such as vehicles, jewelry, tools, portable equipment, etc.

b. Liquid, cash, or “paper” assets such as a checking or savings accounts, tax refunds, insurance settlements, stocks, bonds, etc.

Criteria

• In-State Financial Institution Data Matches (FIDM) – The criteria for an NCP to be submitted for FIDM is the same as found for General Enforcement (see CS 801P General Enforcement), and when ORSIS is coded appropriately. For additional information, refer to CS 802P Annual Notice of Past-due Support, General.

• Multi-State Financial Institution Data Matches (MSFIDM) – The criteria for an NCP to be submitted for MSFIDM is the same as found for Federal Tax Certification. For additional information, refer to CS 670P Federal Tax Intercept – Criteria.