Amounts received as payment of support or reimbursement of the cost of services paid as provided in this chapter shall be distributed in the following manner:

1. (1) If any part of the cost of services was paid from federal funds under Title IV Part E of the Social Security Act (42 U.S.C. 671 et seq.), the amounts received shall first be applied as provided in 42 U.S.C. 657 and 45 CFR 302.52.

2. (2) As provided in 45 CFR 302.52(b)(2), all amounts remaining after the distributions required by subdivision (1) shall be used in the best interests of the child for whom the support or reimbursement was paid, including:

   1. (A) setting aside amounts for the child's future needs; or
   2. (B) making all or part of the amount available to the person responsible for meeting the child's daily needs to be used for the child's benefit.

As added by P.L.273-1999, SEC.123. Amended by P.L.145-2006, SEC.364; P.L.146-2008, SEC.671; P.L.206-2015, SEC.61.