ENFORCEMENT OF SUPPORT OBLIGATION
CS 807P Notice of
Lien-Levy, Other Than Financial Institutions
03/99 Revised 06/02/23 Training Completed 06/16/23 Last
Reviewed 09/24/24
U.C.A. 49-11-612, U.C.A. 59-10-529, 26B-9-101, 205, 215, 219, 67-4a, 78B-11-112; URCP 45; R527-430
Statutory Authority
U.C.A.
26B-9-101 defines “Income” as:
“(10)
(a) ‘Income’ means earnings,
compensation, or other payment due to an individual, regardless of source,
whether denominated as wages, salary, commission, bonus, pay, or contract
payment, or denominated as advances on future wages, salary, commission, bonus,
pay, allowances, contract payment, or otherwise, including severance pay, sick
pay, and incentive pay.
(b)
‘Income’ includes:
(i) all gain derived from capital assets, labor, or both,
including profit gained through sale or conversion of capital assets;
(ii)
interest and dividends;
(iii)
periodic payments made under pension or retirement programs or insurance
policies of any type;
(iv)
unemployment compensation benefits;
(v)
workers' compensation benefits; and
(vi)
disability benefits.”
In addition to imposing a lien-levy
(attach and seize action) upon the noncustodial parent’s (NCP) assets held in a
financial institution (refer to CS 806P Notice of Lien-Levy, Financial
Institutions – Overview and related subsections), the Office of Recovery
Services/Child Support Services (ORS/CSS) is also authorized to lien-levy other
types of monies or payments.
U.C.A.
26B-9-205 states:
“(1) The office may, without the necessity of
initiating an adjudicative proceeding or obtaining an order from any other
judicial or administrative tribunal, take the following actions related to the
establishment of paternity or the establishment, modification, or enforcement
of a support order, and to recognize and enforce the authority of state
agencies of other states to take the following actions:
(a) require a child, mother, and alleged
father to submit to genetic testing;
(b) subpoena financial or other information
needed to establish, modify, or enforce a support order, including:
(i) the name,
address, and employer of a person who owes or is owed support that appears on
the customer records of public utilities and cable television companies; and
(ii) information held by financial
institutions on such things as the assets and liabilities of a person who owes
or is owed support;
(c) require a public or private employer to promptly
disclose information to the office on the name, address, date of birth, social
security number, employment status, compensation, and benefits, including
health insurance, of any person employed as an employee or contractor by the
employer;
(d) require an insurance organization subject
to Title 31A, Insurance Code, or an insurance administrator of a self-insured
employer to promptly disclose to the office health insurance information
pertaining to an insured or an insured's dependents, if known;
(e) obtain access to information in the
records and automated databases of other state and local government agencies,
including:
(i) marriage,
birth, and divorce records;
(ii) state and local tax and revenue records
providing information on such things as residential and mailing addresses,
employers, income, and assets;
(iii) real and titled personal property
records;
(iv) records concerning occupational and
professional licenses and the ownership and control of corporations,
partnerships, and other business entities;
(v) employment security records;
(vi) records of agencies administering public
assistance programs;
(vii) motor vehicle department records; and
(viii) corrections records;
(f) upon providing notice to the obligor and obligee, direct an obligor or other payor to change the
payee to the office if support has been assigned to the office under Section
35A-7-108 or if support is paid through the office pursuant to the Social
Security Act, 42 U.S.C. Sec. 654B;
(g) order income withholding in accordance
with Part 3, Income Withholding in IV-D Cases;
(h) secure assets to satisfy past-due support
by:
(i) intercepting or
seizing periodic or lump-sum payments from:
(A) a state or local government agency,
including unemployment compensation, workers' compensation, and other benefits;
and
(B) judgments, settlements, and lotteries;
(ii) attaching and seizing assets of an
obligor held in financial institutions;
(iii) attaching public and private retirement
funds, if the obligor presently:
(A) receives periodic payments; or
(B) has the authority to withdraw some or all
of the funds; and
(iv) imposing liens against real and personal
property in accordance with this section and Section 26B-9-214; and
(i) increase
monthly payments in accordance with Section 26B-9-219.
(2) (a) When taking action
under Subsection (1), the office shall send notice under this Subsection (2)(a)
to the person or entity who is required to comply with the action if not a
party to a case receiving IV-D services.
(b) The notice described in Subsection (2)(a)
shall include:
(i) the authority
of the office to take the action;
(ii) the response required by the recipient;
(iii) the opportunity to provide clarifying
information to the office under Subsection (2)(c);
(iv) the name and telephone number of a
person in the office who can respond to inquiries; and
(v) the protection from criminal and civil
liability extended under Subsection (7).
(c) The recipient of a notice sent under this
Subsection (2) shall promptly comply with the terms of the notice and may, if
the recipient believes the office's request is in error, send clarifying
information to the office setting forth the basis for the recipient's belief.
(3) The office shall in any case in which it
requires genetic testing under Subsection (1)(a):
(a) consider clarifying information if
submitted by the obligee and alleged father;
(b) proceed with testing as the office
considers appropriate;
(c) pay the cost of the tests, subject to
recoupment from the alleged father if paternity is established;
(d) order a second test if the original test
result is challenged, and the challenger pays the cost of the second test in
advance; and
(e) require that the genetic test is:
(i) of a type
generally acknowledged as reliable by accreditation bodies designated by the
Secretary of the United States Department of Health and Human Services; and
(ii) performed by a laboratory approved by
such an accreditation body.
(4) The office may impose a penalty against
an entity for failing to provide information requested in a subpoena issued
under Subsection (1) as follows:
(a) $25 for each failure to provide requested
information; or
(b) $500 if the failure to provide requested
information is the result of a conspiracy between the entity and the obligor to
not supply the requested information or to supply false or incomplete
information.
(5) (a) Unless a court or administrative
agency has reduced past-due support to a sum certain judgment, the office shall
provide concurrent notice to an obligor in accordance with Section 26B-9-207
of:
(i) any action
taken pursuant to Subsections (1)(h)(i)(B),
(1)(h)(ii), (1)(h)(iii), or Subsection 26B-9-208(1)(b) if Subsection
(5)(b)(iii) does not apply; and
(ii) the opportunity of the obligor to
contest the action and the amount claimed to be past-due by filing a written
request for an adjudicative proceeding with the office within 15 days of notice
being sent.
(b) (i) Upon
receipt of a notice of levy from the office for an action taken pursuant to
Subsections (1)(h)(i)(B), (1)(h)(ii), (1)(h)(iii), or
Subsection 26B-9-208(1)(b), a person in possession of personal property of the
obligor shall:
(A) secure the property from unauthorized
transfer or disposition as required by Section 26B-9-215; and
(B) surrender the property to the office
after 21 days of receiving the notice unless the office has notified the person
to release all or part of the property to the obligor.
(ii) Unless released by the office, a notice
of levy upon personal property shall be:
(A) valid for 60 days; and
(B) effective against any additional property
which the obligor may deposit or transfer into the possession of the person up
to the amount of the levy.
(iii) If the property upon which the office
imposes a levy is insufficient to satisfy the specified amount of past-due
support and the obligor fails to contest that amount under Subsection
(5)(a)(ii), the office may proceed under Subsections (1)(h)(i)(B),
(1)(h)(ii), (1)(h)(iii), or Subsection 26B-9-208(1)(b) against additional
property of the obligor until the amount specified and the reasonable costs of
collection are fully paid.
(c) Except as provided in Subsection
(5)(b)(iii), the office may not disburse funds resulting from action requiring
notice under Subsection (5)(a)(i) until:
(i) 21 days after
notice was sent to the obligor; and
(ii) the obligor, if the obligor contests the
action under Subsection (5)(a)(ii), has exhausted the obligor's administrative
remedies and, if appealed to a district court, the district court has rendered
a final decision.
(d) Before intercepting or seizing any
periodic or lump-sum payment under Subsection (1)(h)(i)
(A), the office shall:
(i) comply with
Subsection 59-10-529(4)(a); and
(ii) include in the notice required by Subsection
59-10-529(4)(a) reference to Subsection (1)(h) (i)(A).
(e) If Subsection (5)(a) or (5)(d) does not
apply, an action against the real or personal property of the obligor shall be
in accordance with Section 26B-9-214.
(6) All information received under this
section is subject to Title 63G, Chapter 2, Government Records Access and
Management Act.
(7) No employer, financial institution,
public utility, cable company, insurance organization, its agent or employee,
or related entity may be civilly or criminally liable for providing information
to the office or taking any other action requested by the office pursuant to
this section.
(8) The
actions the office may take under Subsection (1) are in addition to the actions
the office may take pursuant to Part 3, Income Withholding in IV-D Cases.”
EXAMPLE: Workers’ Compensation (WC)
settlements; unclaimed property; accident or injury settlements; lawsuit
settlements; or prizes and lotteries payable to the NCP. CSS is also authorized to lien-levy the NCP’s
personal property (liquid, cash, or “paper” assets) that is not in his/her
possession, such as cash being held by a jail.
U.C.A.
26B-9-215 states:
“(1) After receiving
notice that a support lien has been filed under this part by the office, no
person in possession of any property which may be subject to that lien may pay
over, release, sell, transfer, encumber, or convey that property to any person
other than the office, unless he first receives:
(a) a release or
waiver thereof from the office; or
(b) a court order
that orders release of the lien on the basis that the debt does not exist or
has been satisfied.
(2) Whenever any such person has in his
possession earnings, deposits, accounts, or balances in excess of $100 over the
amount of the debt claimed by the office, that person may, without liability
under this part, release that excess to the obligor.”
These monies
are subject to the CSS lien-levy authority whether the payment is for the NCP
or for joint recipients, such as the NCP and a current spouse.
Additionally,
U.C.A. 26B-9-205 states:
“(8) The actions the office may take under
Subsection (1) are in addition to the actions the office may take pursuant to
Part 3, Income Withholding in IV-D Cases.”
The NCP must
owe an arrears debt before CSS may initiate a lien-levy action (refer to the
criteria listed in CS 801P General Enforcement); however, current support due
for the month the levy is initiated may also be included in the levy. To place a levy on the NCP’s payment, CSS
sends a “Notice of Lien-Levy, Other Than Financial Institution” to the
insurance company or other payor. The
payor is then required to freeze the payment and send the money to CSS after 21
calendar days unless the payor receives a release from CSS or from a
court.
Sending a lien-levy
to an insurance company or other payor is similar to sending a lien-levy to a
financial institution. The same
timelines and review process for financial institutions apply to payors of lump
sum payments, judgments, settlements, lotteries, unclaimed property, public and
private retirement funds, etc.
If the
lien-levy is contested and a determination is made that some or all of the
funds are exempt from levy, CSS may release all or part of the funds. For more information on lien-levy and
financial institutions, refer to the following polices:
1.
CS 090P –
RAA: Overview and Corresponding
Sections;
2.
CS 806P –
Notice of Lien-Levy, Financial Institutions – Overview;
3.
CS 806P-1 –
Notice of Lien-Levy, Financial Institutions – Procedures: Issuing a Lien-Levy;
4.
CS 806P-2 –
Notice of Lien-Levy, Financial Institutions – Procedures: Review and Follow-up; and,
5.
CS 806P-3 –
Notice of Lien-Levy, Financial Institutions – Procedures: Intergovernmental Cases.
1.
Lien – As defined by the
Office of Recovery Services/Child Support Services (ORS/CSS) – A legal filing that establishes a
legal claim against property.
2.
Levy – As
defined by the Office of Recovery Services/Child Support Services (ORS/CSS) –
An action to impose or collect by legal authority.
3.
Lien-levy – As
defined by the Office of Recovery Services/Child Support Services (ORS/CSS) – An
administrative action to seize and attach financial assets to satisfy a
past-due support obligation.
4.
Means-tested income – As
defined by the Office of Recovery Services/Child Support Services (ORS/CSS) – Government
programs that require the recipient to meet certain income levels to qualify
for the benefit. Means‑tested
programs include, but are not limited to: IV‑A services, Supplemental
Security Income (SSI), Medicaid, Food Stamps, General Assistance, benefits
received under a housing subsidy, or the Job Training Partnership Act (JTPA). For more information on means-tested income,
refer to the definition of “Means-tested Income” found in CS Appendix A-P
Acronyms and Glossary of ORS/CSS Terms.
Workers’ Compensation General Information – Overview
Workers’
compensation (WC) is a wage replacement and medical care program for a worker
whose injury or illness is work related.
Almost all employers are required to have WC insurance. To determine the WC insurance carrier for an
employer, call the State of Utah Labor Commission’s Workers’ Compensation
Department at (801) 530-6800. Some
different types of benefits a worker may be eligible for under WC are listed
below.
1.
Temporary Total Compensation – This benefit is paid to replace
lost wages. It is a percent of the
worker’s average gross weekly wage.
2.
Permanent Partial Impairment
Rating (PPI) – This
benefit may be paid if the worker sustains a permanent impairment due to a job related injury or illness. It is a partial impairment because the worker
is able to return to work. The
impairment rating is determined by a doctor.
3.
Permanent Total Disability
Compensation (PPD) – This
benefit may be paid if the worker sustains a permanent disability which is
totally disabling and prevents him/her from returning to any type of work,
e.g., loss of two limbs such as legs, arms, eyes or a combination.
When the NCP has been approved for permanent partial impairment compensation,
the NCP may receive the payment in one lump sum, or in a series of
payments. NCP may also reach a full
settlement (meaning that no future benefits, or only specific benefits as
agreed upon would be available) with the insurance carrier for a WC claim.
Unclaimed
Property Information – Overview
Accounts with
financial institutions/companies that have not had any activity generated or
contact with the owner of the account for a designated period of time become
unclaimed property. Unclaimed property
is often referred to as “abandoned” or “forgotten funds”. Every U.S. state has:
1.
Statutes in
effect that instruct financial institutions and companies to turn unclaimed
property over to the state official; and,
2.
A program
that attempts to locate the owners of abandoned funds and make the money
available to the owner to claim.
In Utah,
unclaimed property is turned over to the State Treasurer’s Office, Unclaimed
Property Division. You can find
unclaimed property in Utah, by conducting a free search on Utah’s official
website for unclaimed property, mycash.utah.gov. To find unclaimed property in other states,
you may search missingmoney.com. The search must be conducted using the NCP’s
name. If the search results in an exact
match of the NCP’s name AND the last known address shown, you may send a “Notice
of Lien-Levy, Other Than Financial Institution” to the State Treasurer’s
Office, Unclaimed Property Division at PO Box 140530, Salt Lake City, UT 84116.
NOTE: For more information and procedures regarding
sending surplus funds to unclaimed property, refer to CS 600P Unreimbursed
Assistance (URA).
Income Withholding as an Option
If the NCP
is receiving WC benefits or other compensation (e.g. public or private
retirement payments) in a series of payments instead of as a lump sum, initiate
income withholding instead of a lien-levy action, if appropriate. Send a “Notice to Withhold Income for Child
Support: Unearned” for up to 65% of the WC.
For more information income withholding, refer to CS 720P Income
Withholding, General Information and CS 734P-1 Notice to Withhold, Workers’
Compensation.
If the NCP
is scheduled to receive a lump sum payment, and the amount of past-due support
is 65% or less of the total payment, send a “Notice to Withhold Income for
Child Support” instead of a lien-levy.
You may initiate income withholding AND a lien-levy action if the NCP is
receiving a series of payments and a lump-sum settlement, if appropriate. Consult with your manager on a case by case
basis to determine the best method for collection/enforcement and refer to the
appropriate subsection below for procedures.
If the NCP
has a public or private retirement fund and s/he has the authority to withdraw
some or all of the funds, you may attach the funds with a lien-levy.
NOTE: Retirement benefits paid by the Utah State
Retirement Office are not subject to lien-levy for delinquent child
support. According to U.C.A. 49-11-612,
retirement benefits and payments are exempt from the expedited process
lien-levy statute, unless the NCP is retired and receiving benefits, and CSS is
able to obtain a Qualified Domestic Relations Order (QDRO) from the court.
A lien-levy
action may be initiated to seize up to 100% of a non-means-tested lump-sum
payment (e.g., an insurance settlement, a judgment, a lottery winning, a public
and/or private retirement fund, unclaimed property, etc.) to pay off 100% of
the NCP’s past-due support if the case meets all of the enforcement criteria identified
in CS 801P General Enforcement.
1.
Determine if a lien-levy action
is appropriate. Determine if the case meets the enforcement
criteria identified
in CS 801P. If the case meets the
enforcement criteria, consult with your team manager to determine if it is
appropriate to initiate a lien-levy action for the payment. For example, if the NCP is entitled to a WC
settlement, but the money is for reimbursement of special medical equipment or
rehabilitation services, it may not be appropriate to levy upon the payment.
If the payment is the result of a lawsuit and the lawsuit will take more than
60 calendar days to resolve, consult with the assigned Assistant Attorney General
(AAG) prior to
sending the lien-levy to the payor.
2.
Obtain information about the
NCP’s payment. If necessary, verify the NCP’s payment or
assets by contacting the payor. Verify that the individual you are
investigating is in fact the NCP on the CSS case. Match the name, social security number and
address (if known).
a.
If the payor
does not comply with the request for information, generate a “Subpoena Duces
Tecum” and the accompanying affidavit to be signed by the team manager. The
payor may charge a research fee for production costs associated with the
subpoena. Serve the subpoena on the
payor by sheriff, constable, or a CSS process server. If the payor refuses to honor the subpoena,
it may be penalized, as follows:
i.
$25.00 for
each failure to provide requested information; or,
ii.
$500.00 if
the failure to provide requested information is the result of a conspiracy
between the entity and the NCP to not supply the information or to supply false
or incomplete information.
iii.
Consult with
the team manager and the assigned AAG to determine if it is appropriate to
pursue a penalty against the payor for failure to honor the subpoena.
3.
Send the Notice of Lien-Levy and
the Concurrent Notice to the NCP by taking the steps listed below.
a.
Generate the lien-levy forms
packet.
b.
Send the lien-levy packet.
The packet may be sent to the payor by first-class mail, FAX, or served
by constable.
NOTE: If you know the contact name for the payor,
send, FAX, or deliver the notice to that person’s attention.
Once the payor receives the Notice
of Lien-levy, the payor has the same responsibilities as the financial
institutions.
c.
Notify the Noncustodial
Parent. Mail by first class mail a copy
of the forms and the “Written Request for Review - Notice of Lien-Levy” to the
NCP. The notice notifies the NCP’s
current spouse how s/he may claim his/her portion of the payment.
NOTE: If the payment does not contain sufficient
funds to pay the past-due support amount in full, and later you identify other
payments belonging to the NCP, generate and send a new Notice of Lien-Levy
packet.
d.
Document actions.
Document all action(s) taken on the case, including the justification
for the lien-levy.
Noncustodial
Parent’s Options
When the NCP receives the “Concurrent
Notice,” a copy of the “Notice of Lien-Levy, Other Than Financial Institution,”
and the “Written Request for Review, Lien-levy.” s/he may:
1.
Do nothing
and allow the levy action to proceed;
2.
Contest the
action and/or amount of past-due support by making a written request for an
administrative review or adjudicative proceeding under UAPA
The NCP (or his/her current
spouse or other joint-owner) may request an emergency review conducted by a
senior agent if s/he believes the lien-levy action is creating an immediate and serious financial hardship
on his/her household. A request for a
hardship review does not need to be in writing.
It may be made by a telephone call or office visit.
The senior agent is responsible
to gather proof of the hardship from the requestor. Once the document is received, the senior
agent must immediately conduct an informal review and based on the information
received, if appropriate, release all or part of the funds in the account and
notify the requestor of the results of your review. The requestor may ask for an additional
review, which would be conducted by the local Quality Assurance Specialist (QA).
3.
The NCP may
take the matter to court.
Unobligated
Joint-Recipient Options
The
“Concurrent Notice to Noncustodial Parent of Lien-Levy” notice tells a current
spouse or other individual who resides with the NCP how s/he may claim his/her
portion of a payment. For procedures and
more information, refer to CS 806P-2 Notice of Lien-Levy, Financial
Institutions – Procedures: Review and
Follow-up.
Release of
Lien-Levy Action
If you have
conducted an administrative review or adjudicative proceeding and have
determined that releasing all or part of the payment is appropriate, choose the appropriate letter and
follow the procedures found in CS 806P-2 to generate the form.
1.
Notice of Partial Release of
Funds, Other – Select
this form when you are releasing part of the funds currently held.
2.
Notice of Full Release of
Lien-Levy, Other – Select this
form when you are releasing all of the funds held AND you are also releasing the Notice of Lien-Levy.
Follow up
Procedures
Once a Notice
of Lien-levy has been sent to a payor, they must surrender the payment to CSS
after 21 calendar days of receipt of the notice, unless the money has been
released all or in part by CSS or by a court order.
1.
Disbursing funds.
If CSS has receives lien-levy money, a hold was placed on the case, and
the money now appears on your Funds Remaining Report, call the Accounting Help
Desk to request that the hold be released if:
a.
It has been
21 calendar days after a copy of the lien-levy notice and the “Concurrent Notice to Noncustodial
Parent of Lien-Levy” was sent to the NCP (and spouse);
b.
The NCP or
joint-recipient has had sufficient time to exhaust his/her administrative
review and adjudicative proceeding requests; and,
c.
The court
has rendered a final decision, if the matter was taken to the district court.
Action
Contested After 15 Calendar Days
The NCP or
his/her spouse or another joint-owner should request a review of the lien-levy
action within 15 calendar days of the date of the concurrent notice. However, there may time when it is
appropriate to allow the review after the 15 day time
period; e.g.:
1.
The NCP can
verify s/he was away on business and did not receive notice until after 15 days;
2.
A
joint-owner does not reside with the NCP an did not receive notice of the
lien-levy action from the financial institution; or,
3.
The
joint-owner was notified late.
For
information and procedures on this type of review, refer to CS 806P-2 Notice of
Lien-Levy, Financial Institutions – Procedures:
Review and Follow-up.
Attorney’s Fees and Medical Costs
If the NCP
is owed money from a payor; e.g., property settlement, insurance settlement,
etc. and has retained a private attorney to work on that settlement on his/her
behalf, the attorney may first deduct his/her fees (owed by the NCP for the
legal work) from the settlement money before the money is sent to CSS in
response to an notice. Likewise, if the
NCP has medical costs, the insurance company and/or the medical provider may
recover their costs before the money is sent to CSS.
The attorney
and/or insurance company/medical provider must provide CSS with adequate proof
of their claim for fees and/or medical costs (e.g., an itemized billing
statement) before they deduct the fees or medical costs from the settlement. CSS may negotiate with the attorney or
medical provider concerning their costs and fees, if appropriate.
Apply the
lien-levy procedures on intergovernmental cases to the extent possible, the
same way you would on an in-state case.
If the payor is in Utah, proceed with a lien-levy action even if the NCP
lives in another state. If the payor is
located in another state, send an intergovernmental referral to the IV-D agency
in that state and request that the other state do a lien-levy.
For more information on intergovernmental cases and procedures, refer to
CS 221P In-State Remedies on Out-of-State Cases and CS 222P Intergovernmental
Referral Methods.