-   **S.1932**

**Deficit Reduction Act of 2005 (Enrolled as Agreed to or Passed by Both
House and Senate)**

**Subtitle C\--Child Support**

**SEC. 7301. ASSIGNMENT AND DISTRIBUTION OF CHILD SUPPORT.**

> \(a\) Modification of Rule Requiring Assignment of Support Rights as a
> Condition of Receiving TANF- Section 408(a)(3) (42 U.S.C. 608(a)(3))
> is amended to read as follows:
>
> \`(3) NO ASSISTANCE FOR FAMILIES NOT ASSIGNING CERTAIN SUPPORT RIGHTS
> TO THE STATE- A State to which a grant is made under section 403 shall
> require, as a condition of paying assistance to a family under the
> State program funded under this part, that a member of the family
> assign to the State any right the family member may have (on behalf of
> the family member or of any other person for whom the family member
> has applied for or is receiving such assistance) to support from any
> other person, not exceeding the total amount of assistance so paid to
> the family, which accrues during the period that the family receives
> assistance under the program.\'.
>
> \(b\) Increasing Child Support Payments to Families and Simplifying
> Child Support Distribution Rules-
>
> \(1\) DISTRIBUTION RULES-
>
> \(A\) IN GENERAL- Section 457(a) (42 U.S.C. 657(a)) is amended to read
> as follows:
>
> \`(a) In General- Subject to subsections (d) and (e), the amounts
> collected on behalf of a family as support by a State pursuant to a
> plan approved under this part shall be distributed as follows:
>
> \`(1) FAMILIES RECEIVING ASSISTANCE- In the case of a family receiving
> assistance from the State, the State shall\--
>
> \`(A) pay to the Federal Government the Federal share of the amount
> collected, subject to paragraph (3)(A);
>
> \`(B) retain, or pay to the family, the State share of the amount
> collected, subject to paragraph (3)(B); and
>
> \`(C) pay to the family any remaining amount.
>
> \`(2) FAMILIES THAT FORMERLY RECEIVED ASSISTANCE- In the case of a
> family that formerly received assistance from the State:
>
> \`(A) CURRENT SUPPORT- To the extent that the amount collected does
> not exceed the current support amount, the State shall pay the amount
> to the family.
>
> \`(B) ARREARAGES- Except as otherwise provided in an election made
> under section 454(34), to the extent that the amount collected exceeds
> the current support amount, the State\--
>
> \`(i) shall first pay to the family the excess amount, to the extent
> necessary to satisfy support arrearages not assigned pursuant to
> section 408(a)(3);
>
> \`(ii) if the amount collected exceeds the amount required to be paid
> to the family under clause (i), shall\--
>
> \`(I) pay to the Federal Government the Federal share of the excess
> amount described in this clause, subject to paragraph (3)(A); and
>
> \`(II) retain, or pay to the family, the State share of the excess
> amount described in this clause, subject to paragraph (3)(B); and
>
> \`(iii) shall pay to the family any remaining amount.
>
> \`(3) LIMITATIONS-
>
> \`(A) FEDERAL REIMBURSEMENTS- The total of the amounts paid by the
> State to the Federal Government under paragraphs (1) and (2) of this
> subsection with respect to a family shall not exceed the Federal share
> of the amount assigned with respect to the family pursuant to section
> 408(a)(3).
>
> \`(B) STATE REIMBURSEMENTS- The total of the amounts retained by the
> State under paragraphs (1) and (2) of this subsection with respect to
> a family shall not exceed the State share of the amount assigned with
> respect to the family pursuant to section 408(a)(3).
>
> \`(4) FAMILIES THAT NEVER RECEIVED ASSISTANCE- In the case of any
> other family, the State shall distribute to the family the portion of
> the amount so collected that remains after withholding any fee
> pursuant to section 454(6)(B)(ii).
>
> \`(5) FAMILIES UNDER CERTAIN AGREEMENTS- Notwithstanding paragraphs
> (1) through (3), in the case of an amount collected for a family in
> accordance with a cooperative agreement under section 454(33), the
> State shall distribute the amount collected pursuant to the terms of
> the agreement.\'.
>
> \(B\) STATE OPTION TO PASS THROUGH ADDITIONAL SUPPORT WITH FEDERAL
> FINANCIAL PARTICIPATION BEGINNING WITH FISCAL YEAR 2009-
>
> \(i\) IN GENERAL- Section 457(a) (42 U.S.C. 657(a)) is amended by
> adding at the end the following:
>
> \`(7) STATE OPTION TO PASS THROUGH ADDITIONAL SUPPORT WITH FEDERAL
> FINANCIAL PARTICIPATION-
>
> \`(A) FAMILIES THAT FORMERLY RECEIVED ASSISTANCE- Notwithstanding
> paragraph (2), a State shall not be required to pay to the Federal
> Government the Federal share of an amount collected on behalf of a
> family that formerly received assistance from the State to the extent
> that the State pays the amount to the family.
>
> \`(B) FAMILIES THAT CURRENTLY RECEIVE ASSISTANCE-
>
> \`(i) IN GENERAL- Notwithstanding paragraph (1), in the case of a
> family that receives assistance from the State, a State shall not be
> required to pay to the Federal Government the Federal share of the
> excepted portion (as defined in clause (ii)) of any amount collected
> on behalf of such family during a month to the extent that\--
>
> \`(I) the State pays the excepted portion to the family; and
>
> \`(II) the excepted portion is disregarded in determining the amount
> and type of assistance provided to the family under such program.
>
> \`(ii) EXCEPTED PORTION DEFINED- For purposes of this subparagraph,
> the term \`excepted portion\' means that portion of the amount
> collected on behalf of a family during a month that does not exceed
> \$100 per month, or in the case of a family that includes 2 or more
> children, that does not exceed an amount established by the State that
> is not more than \$200 per month.\'.
>
> \(ii\) EFFECTIVE DATE- The amendment made by clause (i) shall take
> effect on October 1, 2008.
>
> \(iii\) REDESIGNATION- Effective October 1, 2009, paragraph (7) of
> section 457(a) of the Social Security Act (as added by clause (i)) is
> redesignated as paragraph (6).
>
> \(C\) STATE PLAN TO INCLUDE ELECTION AS TO WHICH RULES TO APPLY IN
> DISTRIBUTING CHILD SUPPORT ARREARAGES COLLECTED ON BEHALF OF FAMILIES
> FORMERLY RECEIVING ASSISTANCE- Section 454 (42 U.S.C. 654) is
> amended\--
>
> \(i\) by striking \`and\' at the end of paragraph (32);
>
> \(ii\) by striking the period at the end of paragraph (33) and
> inserting \`; and\'; and
>
> \(iii\) by inserting after paragraph (33) the following:
>
> \`(34) include an election by the State to apply section 457(a)(2)(B)
> of this Act or former section 457(a)(2)(B) of this Act (as in effect
> for the State immediately before the date this paragraph first applies
> to the State) to the distribution of the amounts which are the subject
> of such sections and, for so long as the State elects to so apply such
> former section, the amendments made by subsection (b)(1) of section
> 7301 of the Deficit Reduction Act of 2005 shall not apply with respect
> to the State, notwithstanding subsection (e) of such section 7301.\'.
>
> \(2\) CURRENT SUPPORT AMOUNT DEFINED- Section 457(c) (42 U.S.C.
> 657(c)) is amended by adding at the end the following:
>
> \`(5) CURRENT SUPPORT AMOUNT- The term \`current support amount\'
> means, with respect to amounts collected as support on behalf of a
> family, the amount designated as the monthly support obligation of the
> noncustodial parent in the order requiring the support or calculated
> by the State based on the order.\'.
>
> \(c\) State Option To Discontinue Older Support Assignments- Section
> 457(b) (42 U.S.C. 657(b)) is amended to read as follows:
>
> \`(b) Continuation of Assignments-
>
> \`(1) STATE OPTION TO DISCONTINUE PRE-1997 SUPPORT ASSIGNMENTS-
>
> \`(A) IN GENERAL- Any rights to support obligations assigned to a
> State as a condition of receiving assistance from the State under part
> A and in effect on September 30, 1997 (or such earlier date on or
> after August 22, 1996, as the State may choose), may remain assigned
> after such date.
>
> \`(B) DISTRIBUTION OF AMOUNTS AFTER ASSIGNMENT DISCONTINUATION- If a
> State chooses to discontinue the assignment of a support obligation
> described in subparagraph (A), the State may treat amounts collected
> pursuant to the assignment as if the amounts had never been assigned
> and may distribute the amounts to the family in accordance with
> subsection (a)(4).
>
> \`(2) STATE OPTION TO DISCONTINUE POST-1997 ASSIGNMENTS-
>
> \`(A) IN GENERAL- Any rights to support obligations accruing before
> the date on which a family first receives assistance under part A that
> are assigned to a State under that part and in effect before the
> implementation date of this section may remain assigned after such
> date.
>
> \`(B) DISTRIBUTION OF AMOUNTS AFTER ASSIGNMENT DISCONTINUATION- If a
> State chooses to discontinue the assignment of a support obligation
> described in subparagraph (A), the State may treat amounts collected
> pursuant to the assignment as if the amounts had never been assigned
> and may distribute the amounts to the family in accordance with
> subsection (a)(4).\'.
>
> \(d\) Conforming Amendments- Section 6402(c) of the Internal Revenue
> Code of 1986 (relating to offset of past-due support against
> overpayments) is amended\--
>
> \(1\) in the first sentence, by striking \`the Social Security Act.\'
> and inserting \`of such Act.\'; and
>
> \(2\) by striking the third sentence and inserting the following:
> \`The Secretary shall apply a reduction under this subsection first to
> an amount certified by the State as past due support under section 464
> of the Social Security Act before any other reductions allowed by
> law.\'.
>
> \(e\) Effective Date-
>
> \(1\) IN GENERAL- Except as otherwise provided in this section, the
> amendments made by the preceding provisions of this section shall take
> effect on October 1, 2009, and shall apply to payments under parts A
> and D of title IV of the Social Security Act for calendar quarters
> beginning on or after such date, and without regard to whether
> regulations to implement the amendments (in the case of State programs
> operated under such part D) are promulgated by such date.
>
> \(2\) STATE OPTION TO ACCELERATE EFFECTIVE DATE- Notwithstanding
> paragraph (1), a State may elect to have the amendments made by the
> preceding provisions of this section apply to the State and to amounts
> collected by the State (and the payments under parts A and D), on and
> after such date as the State may select that is not earlier than
> October 1, 2008, and not later than September 30, 2009.
>
> \(f\) Use of Tax Refund Intercept Program To Collect Past-Due Child
> Support on Behalf of Children Who Are Not Minors-
>
> \(1\) IN GENERAL- Section 464 (42 U.S.C. 664) is amended\--
>
> \(A\) in subsection (a)(2)(A), by striking \`(as that term is defined
> for purposes of this paragraph under subsection (c))\'; and
>
> \(B\) in subsection (c)\--
>
> \(i\) in paragraph (1)\--
>
> \(I\) by striking \`(1) Except as provided in paragraph (2), as used
> in\' and inserting \`In\'; and
>
> \(II\) by inserting \`(whether or not a minor)\' after \`a child\'
> each place it appears; and
>
> \(ii\) by striking paragraphs (2) and (3).
>
> \(2\) EFFECTIVE DATE- The amendments made by paragraph (1) shall take
> effect on October 1, 2007.
>
> \(g\) State Option To Use Statewide Automated Data Processing and
> Information Retrieval System for Interstate Cases- Section
> 466(a)(14)(A)(iii) (42 U.S.C. 666(a)(14)(A)(iii)) is amended by
> inserting before the semicolon the following: \`(but the assisting
> State may establish a corresponding case based on such other State\'s
> request for assistance)\'.

**SEC. 7302. MANDATORY REVIEW AND ADJUSTMENT OF CHILD SUPPORT ORDERS FOR
FAMILIES RECEIVING TANF.**

> \(a\) In General- Section 466(a)(10)(A)(i) (42 U.S.C.
> 666(a)(10)(A)(i)) is amended\--
>
> \(1\) by striking \`parent, or,\' and inserting \`parent or\'; and
>
> \(2\) by striking \`upon the request of the State agency under the
> State plan or of either parent,\'.
>
> \(b\) Effective Date- The amendments made by subsection (a) shall take
> effect on October 1, 2007.

**SEC. 7303. DECREASE IN AMOUNT OF CHILD SUPPORT ARREARAGE TRIGGERING
PASSPORT DENIAL.**

> \(a\) In General- Section 452(k)(1) (42 U.S.C. 652(k)(1)) is amended
> by striking \`\$5,000\' and inserting \`\$2,500\'.
>
> \(b\) Conforming Amendment- Section 454(31) (42 U.S.C. 654(31)) is
> amended by striking \`\$5,000\' and inserting \`\$2,500\'.
>
> \(c\) Effective Date- The amendments made by this section shall take
> effect on October 1, 2006.

**SEC. 7304. MAINTENANCE OF TECHNICAL ASSISTANCE FUNDING.**

> Section 452(j) (42 U.S.C. 652(j)) is amended by inserting \`or the
> amount appropriated under this paragraph for fiscal year 2002,
> whichever is greater\' before \`, which shall be available\'.

**SEC. 7305. MAINTENANCE OF FEDERAL PARENT LOCATOR SERVICE FUNDING.**

> Section 453(o) (42 U.S.C. 653(o)) is amended\--
>
> \(1\) in the first sentence, by inserting \`or the amount appropriated
> under this paragraph for fiscal year 2002, whichever is greater\'
> before \`, which shall be available\'; and
>
> \(2\) in the second sentence, by striking \`for each of fiscal years
> 1997 through 2001\'.

**SEC. 7306. INFORMATION COMPARISONS WITH INSURANCE DATA.**

> \(a\) Duties of the Secretary- Section 452 (42 U.S.C. 652) is amended
> by adding at the end the following:
>
> \`(l) Comparisons With Insurance Information-
>
> \`(1) IN GENERAL- The Secretary, through the Federal Parent Locator
> Service, may\--
>
> \`(A) compare information concerning individuals owing past-due
> support with information maintained by insurers (or their agents)
> concerning insurance claims, settlements, awards, and payments; and
>
> \`(B) furnish information resulting from the data matches to the State
> agencies responsible for collecting child support from the
> individuals.
>
> \`(2) LIABILITY- An insurer (including any agent of an insurer) shall
> not be liable under any Federal or State law to any person for any
> disclosure provided for under this subsection, or for any other action
> taken in good faith in accordance with this subsection.\'.
>
> \(b\) State Reimbursement of Federal Costs- Section 453(k)(3) (42
> U.S.C. 653(k)(3)) is amended by inserting \`or section 452(l)\' after
> \`pursuant to this section\'.

**SEC. 7307. REQUIREMENT THAT STATE CHILD SUPPORT ENFORCEMENT AGENCIES
SEEK MEDICAL SUPPORT FOR CHILDREN FROM EITHER PARENT.**

> \(a\) State Agencies Required To Seek Medical Support From Either
> Parent-
>
> \(1\) IN GENERAL- Section 466(a)(19)(A) (42 U.S.C. 666(a)(19)(A)) is
> amended by striking \`which include a provision for the health care
> coverage of the child are enforced\' and inserting \`shall include a
> provision for medical support for the child to be provided by either
> or both parents, and shall be enforced\'.
>
> \(2\) CONFORMING AMENDMENTS-
>
> \(A\) TITLE IV-D-
>
> \(i\) Section 452(f) (42 U.S.C. 652(f)) is amended by striking
> \`include medical support as part of any child support order and
> enforce medical support\' and inserting \`enforce medical support
> included as part of a child support order\'.
>
> \(ii\) Section 466(a)(19) (42 U.S.C. 666(a)(19)), as amended by
> paragraph (1) of this subsection, is amended\--
>
> \(I\) in subparagraph (A)\--

(aa) by striking \`section 401(e)(3)(C)\' and inserting \`section
401(e)\'; and

(bb) by striking \`section 401(f)(5)(C)\' and inserting \`section
401(f)\';

> \(II\) in subparagraph (B)\--

(aa) by striking \`noncustodial\' each place it appears; and

(bb) in clause (iii), by striking \`section 466(b)\' and inserting
\`subsection (b)\'; and

> \(III\) in subparagraph (C), by striking \`noncustodial\' each place
> it appears and inserting \`obligated\'.
>
> \(B\) STATE OR LOCAL GOVERNMENTAL GROUP HEALTH PLANS- Section
> 401(e)(2) of the Child Support Performance and Incentive Act of 1998
> (29 U.S.C. 1169 note) is amended, in the matter preceding subparagraph
> (A), by striking \`who is a noncustodial parent of the child\'.
>
> \(C\) CHURCH PLANS- Section 401(f)(5)(C) of the Child Support
> Performance and Incentive Act of 1998 (29 U.S.C. 1169 note) is amended
> by striking \`noncustodial\' each place it appears.
>
> \(b\) Enforcement of Medical Support Requirements- Section 452(f) (42
> U.S.C. 652(f)), as amended by subsection (a)(2)(A)(i), is amended by
> inserting after the first sentence the following: \`A State agency
> administering the program under this part may enforce medical support
> against a custodial parent if health care coverage is available to the
> custodial parent at a reasonable cost, notwithstanding any other
> provision of this part.\'.
>
> \(c\) Definition of Medical Support- Section 452(f) (42 U.S.C.
> 652(f)), as amended by subsections (a)(2)(A)(i) and (b) of this
> section, is amended by adding at the end the following: \`For purposes
> of this part, the term \`medical support\' may include health care
> coverage, such as coverage under a health insurance plan (including
> payment of costs of premiums, co-payments, and deductibles) and
> payment for medical expenses incurred on behalf of a child.\'.

**SEC. 7308. REDUCTION OF FEDERAL MATCHING RATE FOR LABORATORY COSTS
INCURRED IN DETERMINING PATERNITY.**

> \(a\) In General- Section 455(a)(1)(C) (42 U.S.C. 655(a)(1)(C)) is
> amended by striking \`90 percent (rather than the percentage specified
> in subparagraph (A))\' and inserting \`66 percent\'.
>
> \(b\) Effective Date- The amendment made by subsection (a) shall take
> effect on October 1, 2006, and shall apply to costs incurred on or
> after that date.

**SEC. 7309. ENDING FEDERAL MATCHING OF STATE SPENDING OF FEDERAL
INCENTIVE PAYMENTS.**

> \(a\) In General- Section 455(a)(1) (42 U.S.C. 655(a)(1)) is amended
> by inserting \`from amounts paid to the State under section 458 or\'
> before \`to carry out an agreement\'.
>
> \(b\) Effective Date- The amendment made by subsection (a) shall take
> effect on October 1, 2007.

**SEC. 7310. MANDATORY FEE FOR SUCCESSFUL CHILD SUPPORT COLLECTION FOR
FAMILY THAT HAS NEVER RECEIVED TANF.**

> \(a\) In General- Section 454(6)(B) (42 U.S.C. 654(6)(B)) is
> amended\--
>
> \(1\) by inserting \`(i)\' after \`(B)\';
>
> \(2\) by redesignating clauses (i) and (ii) as subclauses (I) and
> (II), respectively;
>
> \(3\) by adding \`and\' after the semicolon; and
>
> \(4\) by adding after and below the end the following new clause:
>
> \`(ii) in the case of an individual who has never received assistance
> under a State program funded under part A and for whom the State has
> collected at least \$500 of support, the State shall impose an annual
> fee of \$25 for each case in which services are furnished, which shall
> be retained by the State from support collected on behalf of the
> individual (but not from the first \$500 so collected), paid by the
> individual applying for the services, recovered from the absent
> parent, or paid by the State out of its own funds (the payment of
> which from State funds shall not be considered as an administrative
> cost of the State for the operation of the plan, and the fees shall be
> considered income to the program);\'.
>
> \(b\) Conforming Amendments- Section 457(a)(3) (42 U.S.C. 657(a)(3))
> is amended to read as follows:
>
> \`(3) FAMILIES THAT NEVER RECEIVED ASSISTANCE- In the case of any
> other family, the State shall distribute to the family the portion of
> the amount so collected that remains after withholding any fee
> pursuant to section 454(6)(B)(ii).\'.
>
> \(c\) Effective Date- The amendments made by this section shall take
> effect on October 1, 2006.

**SEC. 7311. EXCEPTION TO GENERAL EFFECTIVE DATE FOR STATE PLANS
REQUIRING STATE LAW AMENDMENTS.**

> In the case of a State plan under part D of title IV of the Social
> Security Act which the Secretary determines requires State legislation
> in order for the plan to meet the additional requirements imposed by
> the amendments made by this subtitle, the effective date of the
> amendments imposing the additional requirements shall be 3 months
> after the first day of the first calendar quarter beginning after the
> close of the first regular session of the State legislature that
> begins after the date of the enactment of this Act. For purposes of
> the preceding sentence, in the case of a State that has a 2-year
> legislative session, each year of the session shall be considered to
> be a separate regular session of the State legislature.