Title 15 . Revenue

Chapter 125 . (Repealed)

Section 683. Good cause for failure to comply with forgiveness agreement

15 AAC 125.683. Good cause for failure to comply with forgiveness agreement

(a) A parent may establish good cause for failure to make payments or comply with other requirements of a forgiveness agreement by presenting clear and convincing evidence that the parent was unable to make the payment or comply with other requirements of the agreement as a result of substantial hardship or other unusual circumstances. The agency will consider the following factors in determining whether a parent has established good cause for failing to make payments under a forgiveness agreement:

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

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

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

(4) the parent 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;

(5) the parent lives a subsistence lifestyle without any local opportunity for employment;

(6) the net monthly income of the parent's household is below the poverty guideline for this state, as set out in the Federal Register by the United States Department of Health and Human Services, and the agency has not determined the parent to be voluntarily underemployed or unemployed under 15 AAC 125.060.

(b) A request for a good cause determination under (a) of this section must be submitted in writing on a form prescribed by the agency and must be accompanied by all documentation required by the agency and any other documentation on which the parent intends to rely to support the request. As necessary to determine whether a good cause determination is appropriate, the agency may request additional information from the parents or from any other source. The agency will issue an administrative review decision granting or denying the request for a good cause determination as soon as practicable. An administrative appeal is not available from the administrative review decision, but the decision is final for the purpose of appeal to the superior court.

(c) In deciding whether to find good cause for a parent's failure to comply with a forgiveness agreement, the agency will consider the extent to which the parent has eliminated discretionary spending and has disposed of the parent'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; and

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

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

(3) in determining whether the parent must dispose of an asset under this subsection, the agency may consider the sentimental value of the asset to the parent and may weigh the sentimental value of the asset to the parent and the cost to the parent of selling the asset against the asset's market value.

(d) If the agency determines that good cause exists for a parent's failure to comply with a forgiveness agreement, the agency will, as appropriate, determine the likely duration of the hardship or other unusual circumstances that form the basis for the good cause finding. The agency may grant a good cause exception under this section only for the duration of the hardship or other unusual circumstances that form the basis for the good cause finding, but in any event for no more than six months. A parent may apply to extend a good cause exception granted under this section beyond the period originally set. The agency will review an extension request in the same manner that the agency reviews an initial request under this section.

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

Authority: AS 25.27.020