This business practice allows the user to exempt administrative enforcement actions when the obligor MEETS criteria for selection but needs to be exempted for other reasons. Some examples would be if offset monies are being held which will pay off the arrearage balance or a court order prohibits specific offsets.

NOTE: When the case service provider receives a copy of the offset notice indicating monies are being held which will pay the arrearage in full, an exemption may be created for any of the FDSO exemption types (See CRIT: Business Practice 1000-21 Displaying Criteria for Administrative Actions for an explanation of the offset exemption types) and SDSO/CRED/KDWP as appropriate. The system will continue to certify obligors based upon the arrearage balance until money is received to eliminate that arrearage balance. Separate exemptions must be created for each offset type as applicable (FDSO: use fed exemption codes, SDSO, CRED, KDWP) and for all obligations which apply to this exemption. If payment of the debt is contingent upon receiving an offset payment, once the payment is received and posted, the exemption(s) should be ended. See Business Practice 1000-19 Discontinuing an Exemption from Administrative Enforcement Actions. The service provider should set a manual alert (Business Practice 800-2 Adding Manual Alerts) to follow up on the receipt of the payment and discontinue the exemption. Failure to end the exemption will result in the obligor (FDSO is by obligor not specific obligation) not being certified if the obligor creates an arrearage balance in the future on these obligation(s) or any newly created obligations. For SDSO, CRED and KDWP the exemption will continue to be in place based upon the specific exemptions on EXMP (EX: by court order).

KAECSES allows the user to remove/exempt an obligation from automated administrative enforcement actions of SDSO, CRED and KDWP.

KAECSES allows the user to exempt an obligor from being certified for specific Federal offsets. This means that if the obligor has an order which prohibits tax offset, all of the obligor=s obligations (for all court orders) will be exempted from tax offset when the TAX exemption is created. The system will deliver a message when a federal exemption is added indicating that the exemption type will be applied to all of the obligor=s obligations.

Exemptions remain in effect until they are end dated. Each time a certification exchange of information occurs, this record will be read and it will stop the obligation(s) from being certified.

The following procedures assume that the user is going to exempt all of a person=s obligations from an action. For CRED, SDSO and KDWP only: If not all of a person=s obligations are to be exempted the user will flow to OPAY from EXMP to select the obligations to be exempted.

Treasury Offset Exemptions:

There are eight exemption codes for treasury offset. These codes have the word exclude in the description. See CRIT for a definition of the code by entering the code value in the type field and pressing PF 2 display. Up to seven exemptions will be sent in the information exchange.

Select the appropriate code for the situation. The treasury offset exclusion is based upon the exemption created on EXMP. For example, if the obligor must be exempted from all federal administrative offsets: income tax offset, passport, federal salary, etc., the user should select the ALL exemption code.

Remember when using ALL that passport exemption has an effect for ten years. If passport needs to remain in effect, multiple exemptions may be added. Ex: TAX; ADM; VEN; SAL; etc. Add every applicable exemption but ALL and PAS on EXMP. A separate EXMP exemption must be added for each type.

If just TAX offset is to be exempted, select TAX. If TAX is used the obligor will be certified for passport, federal salary, etc. everything but income taxes.

CRED Exemptions:

If the obligor has an administrative exemption and also other exemptions, such as Bankruptcy or Good cause, the exemption code on the CRED screen will display XAD as long as this exemption is in effect. XAD will override XBR and XGC when multiple exemptions exist simultaneously.

KDWP Exemptions:

If the obligor has an administrative exemption from KDWP license sanction, the type of "KDWP" should be entered or selected from the Administrative Actions Available list. If the obligor has multiple court orders, the exemption must be set for each court order to be exempted.

WARNING: No deletion process for exemptions exist. Use caution in recording exemptions. If a record is created in error, the exemption must be end dated (current date) and a notation recorded in the narrative history. If a valid exemption is created but the end date is entered incorrectly, it must be updated with the current date. A new exemption record will have to be created the following day with the correct end date. Exemptions are used daily by the system for administrative enforcement activities and therefore accuracy is imperative.

--Enter--

Court Case number

Trib State

County

NOTE: The court case number and tribunal are not mandatory for obligations which are not court ordered. Example: Recovery obligations.

CSE Person number or Social Security Number.

Administrative Action Type: Select an A (Automatic type from the CDVL screen. Examples: TAX, ALL, SDSO, CRED. Do not select FDSO.)

All Obligations (System defaults to N if not entered for SDSO and CRED. An N indicates that the exemption applies to the selected obligation only and not to all the obligations on the court case number. If the exemption applies to all the obligations, a Y must be entered in the All Obligations field. A Y must be entered for any of the Fed Exclude types.)

NOTE: The batch process for KDWP license sanction will exempt an obligor for ALL obligations, even in a single obligation for a court order is selected on the EXMP screen.

--If N is entered or the default (N) allowed in the All Obligations field--

Type AS@ in the Oblig prompt field to select an obligation.

Press PF4 to transfer to List Obligations by AP/Payor (OPAY).

Type S in the Sel field next to the appropriate obligation on OPAY.

Press PF9 to return to EXMP with the selected obligation.

Effective Date

End Date (optional, enter if known at time of the add, such as date specified in a court order)

Person Granting Exemption (CSE service provider)

Reason

Description (Optional. Please enter a description as appropriate, for example: if there is a court document excluding the enforcement action be taken.)

--Press PF5 Add--

This process may be repeated for multiple federal exemptions.

--Enter--

CSE Person number or Social Security Number

--Press PF2 Display--

--A record is displayed for every obligation that was exempted. For more information, enter an AS@ in the SEL field by the exemption record and press PF15 to proceed to the EXMP screen.--

The list may also be filtered by the Administrative Action type; Obligation type or date.