Title 15 . Revenue

Chapter 125 . (Repealed)

Section 678. Forgiveness of certified state debt upon compliance with forgiveness agreement

15 AAC 125.678. Forgiveness of certified state debt upon compliance with forgiveness agreement

(a) The agency will monitor the parent's compliance with the forgiveness agreement on a monthly basis and will notify the parent of any noncompliance as provided in 15 AAC 125.680. However, the agency will forgive certified state debt on a yearly basis. The first yearly reporting period commences as of the date the parent was approved for participation in the arrears forgiveness program. Each subsequent yearly reporting period commences on the anniversary of the date the parent was approved for participation in the arrears forgiveness program.

(b) The agency will forgive a portion of the certified state debt at the conclusion of each yearly reporting period at the following rates:

(1) for the first year: 10 percent of the certified state debt, plus the waiver of all interest that accrued on the certified state debt during the first yearly reporting period;

(2) for the second year: 15 percent of the certified state debt, plus the waiver of all interest that accrued on the certified state debt during the second yearly reporting period;

(3) for the third year: 15 percent of the certified state debt, plus the waiver of all interest that accrued on the certified state debt during the third yearly reporting period;

(4) for the fourth year: 20 percent of the certified state debt, plus the waiver of all interest that accrued on the certified state debt during the fourth yearly reporting period;

(5) for the fifth year: 20 percent of the certified state debt, plus the waiver of all interest that accrued on the certified state debt during the fifth yearly reporting period;

(6) for the sixth year: 20 percent of the certified state debt, plus the waiver of all interest that accrued on the certified state debt during the sixth yearly reporting period.

(c) When determining the amount of the certified state debt subject to forgiveness each yearly reporting period, the agency will first apply any payments received from continued enforcement actions, as provided in 15 AAC 125.673. Only the applicable percentage of the certified state debt, after deducting payments under 15 AAC 125.673, will be forgiven. The agency will not forgive an amount that, after the application of any payments under 15 AAC 125.673, results in an overpayment or otherwise reduce the balance owed by the parent below zero.

(d) If a parent's participation in the program is terminated in the middle of a yearly reporting period because the parent no longer meets the requirements of 15 AAC 125.650(a) (2), the agency will forgive a prorated percentage of the certified state debt based on the percentage of the year during which the parent fully complied with the forgiveness agreement. If the parent's participation in the program is terminated in the middle of a yearly reporting period for any reason other than failure to meet the requirements of 15 AAC 125.650(a) (2), the agency will not forgive any percentage of the certified state debt for that yearly reporting period.

History: Eff. 4/1/2005, Register 173

Authority: AS 25.27.020