Sec. 17. (a) The office shall, under procedures established by the department of state revenue, file an application for the offset of state tax refunds due to a parent who:
(1) is required by a court or an administrative order to provide coverage of the costs of health services to a child who is eligible for medical assistance;
(2) has received payment from a third party for the costs of the services to the child; and
(3) has not used the payments to reimburse, as appropriate, either the:
(A) other parent or guardian of the child; or
(B) provider of the health services;
to the extent necessary to reimburse the office, or, where the other parent has paid the provider or the office, the other parent, for the costs of the services provided to the child under the Medicaid program.
(b) The office may institute garnishment proceedings against the wages, salary, or other employment income of the parent described in subsection (a) to the extent necessary to reimburse the office for the costs of health services provided to a child who has received the services under the Medicaid program.
(c) Claims for current or past due child support take priority over any claims authorized by this section.
As added by P.L.46-1995, SEC.30.