Title 15 . Revenue

Chapter 125 . (Repealed)

Section 630. Exception based on evidence of unusual hardship

15 AAC 125.630. Exception based on evidence of unusual hardship

(a) At any time during the administrative review process authorized by 15 AAC 125.610, an obligor may request that the payment agreement be modified or that the licensing action against the obligor be suspended based on evidence of an unusual hardship that the licensing action would have on the obligor or on the obligor's family. To obtain an exception that is based on evidence of unusual hardship, the obligor shall present clear and convincing evidence of:

(1) unusual circumstances that prevent the obligor from either complying with the child support order or entering into a payment schedule agreement with the agency for the purpose of coming into compliance with the child support order; and

(2) the unusual hardship that would result if the licensing action continued.

(b) The agency will, consider the following factors in determining whether unusual circumstances exist:

(1) a significant illness or disability that prevents the obligor from working at any reasonable employment;

(2) exceptional medical expenses that are not reimbursed by insurance, Medicaid, or another government program, or through private litigation;

(3) an accident or other disaster that significantly affects the obligor or an immediate family member of the obligor;

(4) the obligor has physical custody of one or more of the children for whom support is sought under a valid custody order issued by a tribunal of competent jurisdiction; or

(5) the obligor lives a subsistence life style without any local opportunity for employment.

(c) In order to qualify for an exception based on evidence of unusual hardship, the obligor shall complete a written request form provided by the agency. The obligor must provide all information requested on that form or explain why the information is not reasonably available. On or attached to the form, the obligor shall disclose the obligor's entire household assets, income, and expenses, including assets, income, and expenses of each member of the obligor's household.

(d) The agency may not grant a request for an exception based on evidence of unusual hardship unless the obligor has eliminated discretionary spending and has disposed of the obligor's non-essential assets. For purposes of making a determination under this subsection,

(1) discretionary spending

(A) includes an expenditure made for recreation, comfort, sport, investment, entertainment, private schools, travel, or rental or recreational property;

(B) does not include an expenditure necessary to feed, house, clothe, or ensure the health of the obligor and the obligor's immediate family members;

(2) the agency will consider each expenditure on a case-by-case basis;

(3) in determining whether the obligor must dispose of a non-essential asset under this subsection, the agency will, in its discretion, consider the sentimental value of the asset to the obligor and will, in its discretion, weigh the sentimental value of the asset to the obligor and the cost to the obligor of selling the asset against the asset's market value.

(e) If, under (d) of this section, the agency grants a request for an exception based on evidence of unusual hardship, the agency will elect to:

(1) suspend the licensing action for a stated period of time; or

(2) modify the monthly payment amount calculated under 15 AAC 125.620(a) .

(f) The agency will grant a request for an exception based on evidence of unusual hardship only for a period not to exceed six months.

(g) An administrative review is not available from a decision granting or denying a request for an exception based on evidence of unusual hardship under this section.

History: Eff. 10/1/98, Register 147

Authority: AS 25.27.020

AS 25.27.244

AS 25.27.246