Child Support Enforcement Act of 1994

Summary: TABLE OF CONTENTS: 
     Title I:  Child Support Enforcement 
     Title II:  Interstate Child Support Enforcement 
     Title III:  Hiding Assets 
Child Support Enforcement Act of 1994 - 
Title I:  Child Support Enforcement
 - Amends the Social Security Act to require States to have in effect statutorily prescribed procedures under which the State occupational licensing and regulating agencies may not issue or renew any occupational, professional, or business license (license) of:  (1) a noncustodial parent who is the subject of an outstanding failure to appear warrant, capias, or bench warrant related to a child support proceeding that appears on the State's crime information system; and (2) an individual who is delinquent in the payment of child support until the obligee or a State prosecutor consents to, or a court orders, the release of the hold on the license or an expedited inquiry and review is completed while the individual is granted a 60-day temporary license.  Makes such provision inapplicable to an individual who makes an adequate showing to the State that the failure to issue or renew the license will result in undue hardship. 
Prohibits (subject to a showing of undue hardship) a Federal agency from issuing or renewing a license of an individual who is delinquent in the payment of child support until the obligee, the obligee's attorney, or a State prosecutor consents to, or a court orders, the release of the hold on the license or an expedited inquiry and review is completed while the individual is granted a 60-day temporary license. 
(Sec. 102) Prohibits (subject to a showing of undue hardship) each agency or instrumentality of the Federal Government, under any program, from providing a benefit to, making a loan to, or providing any guarantee for the benefit of, any individual:  (1) whose child support arrearages determined under a court order or an order of an administrative process established under State law exceed $1,000; and (2) who is not in compliance with a plan or an agreement to repay the arrearages. 
Makes such an individual ineligible to accept employment in a position in the Federal Government (subject to a showing of undue hardship). 
(Sec. 103) Authorizes the Secretary of State to refuse a passport or revoke, restrict, or limit a passport in any case in which the Secretary determines or is informed by competent authority that the applicant or passport holder is a noncustodial parent who is the subject of an outstanding State warrant of arrest for nonpayment of child support where the amount in controversy is not less than $10,000. 
(Sec. 104) Amends the Consumer Credit Protection Act to authorize a consumer reporting agency to furnish a consumer report to a State agency administering a State plan under the Social Security Act for use to establish or modify a child support award. 
(Sec. 105) Directs the Secretary of the Treasury to:  (1) establish a system of reporting of new employees by requiring employers to provide a copy of every new employee's W-4 form to the child support enforcement agency of the State in which the employment is located; and (2) modify the W-4 form completed by the new employee to include whether a child support obligation is owed by such employee (and, if so, to whom such obligation is payable and the amount of such obligation), whether payment of such obligation is to be by income withholding, and whether the new employee has health care insurance available. 
Title II:  Interstate Child Support Enforcement
 - Amends the Federal judicial code to:  (1) require the courts of each State to recognize and enforce according to its terms a child support order or an order adjudicating parentage against an individual over whom personal jurisdiction has been exercised consistent with this title; and (2) prohibit such courts from modifying such an order unless each contestant has filed written consent and the court of the State otherwise has jurisdiction to issue such an order. 
Sets forth provisions regarding:  (1) the exercise by the court of a State of personal jurisdiction over a nonresident contestant and of continuing, exclusive jurisdiction of a child support order or an order adjudicating parentage; (2) which law applies (generally, the forum State's law is applicable in a proceeding to establish, modify, or enforce such an order); and (3) which statute of limitations applies (whichever is longer). 
Title III:  Hiding Assets
 - Amends the Social Security Act to require States to have in effect statutorily prescribed procedures: (1) requiring that, in any case related to child support, any transfer of property by an individual who owes a child support arrearage be presumed to be made with the intent to avoid payment of the arrearage (subject to rebuttal by evidence to the contrary); and (2) that allow the State to void fraudulent conveyances of property that are made in an attempt to avoid child support obligations.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Child Support Enforcement Act of 
1994''.

                   TITLE I--CHILD SUPPORT ENFORCEMENT

SEC. 101. HOLD ON OCCUPATIONAL, PROFESSIONAL, AND BUSINESS LICENSES.

    (a) State Hold Based on Warrant or Support Delinquency.--Section 
466(a) of the Social Security Act (42 U.S.C. 666(a)) is amended by 
inserting after paragraph (11) the following:
            ``(12) Procedures under which the State occupational 
        licensing and regulating departments and agencies may not issue 
        or renew any occupational, professional, or business license 
        of--
                    ``(A) a noncustodial parent who is the subject of 
                an outstanding failure to appear warrant, capias, or 
                bench warrant related to a child support proceeding 
                that appears on the State's crime information system, 
                until removed from the system; and
                    ``(B) an individual who is delinquent in the 
                payment of child support, until the obligee or a State 
                prosecutor responsible for child support enforcement 
                consents to, or a court that is responsible for the 
                order's enforcement orders, the release of the hold on 
                the license, or an expedited inquiry and review is 
                completed while the individual is granted a 60-day 
                temporary license.
        The preceding sentence shall not apply to an individual who 
        makes an adequate showing to the State that the failure to 
        issue or renew an occupational, professional, or business 
        license will result in undue hardship.''.
    (b) Federal Hold Based on Support Delinquency.--A Federal agency 
may not issue or renew any occupational, professional, or business 
license of an individual who is delinquent in the payment of child 
support, until the obligee, the obligee's attorney, or a State 
prosecutor responsible for child support enforcement consents to, or a 
court that is responsible for the order's enforcement orders, the 
release of the hold on the license, or an expedited inquiry and review 
is completed while the individual is granted a 60-day temporary 
license. The preceding sentence shall not apply to an individual who 
makes an adequate showing to the State that the failure to issue or 
renew an occupational, professional, or business license will result in 
undue hardship.

SEC. 102. DENIAL OF FEDERAL BENEFITS, LOANS, GUARANTEES, AND EMPLOYMENT 
              TO CERTAIN PERSONS WITH LARGE CHILD SUPPORT ARREARAGES.

    (a) Benefits, Loans, and Guarantees.--Notwithstanding any other 
provision of law, each agency or instrumentality of the Federal 
Government may not, under any program that the agency or 
instrumentality supervises or administers, provide a benefit to, make a 
loan to, or provide any guarantee for the benefit of, any individual--
            (1) whose child support arrearages, determined under a 
        court order or an order of an administrative process 
        established under State law, exceed $1,000; and
            (2) who is not in compliance with a plan or an agreement to 
        repay the arrearages.
The preceding sentence shall not apply to an individual who makes an 
adequate showing to the State that the failure to provide a benefit, 
loan, or guarantee will result in undue hardship.
    (b) Employment.--
            (1) In general.--Notwithstanding any other provision of 
        law, an individual shall be considered ineligible to accept 
        employment in a position in the Federal Government if--
                    (A) such individual has child support arrearages, 
                determined under a court order or an order of an 
                administrative process established under State law, 
                exceeding $1,000; and
                    (B) such individual is not in compliance with a 
                plan or agreement to repay the arrearages.
        The preceding sentence shall not apply to an individual who 
        makes an adequate showing to the State that ineligibility to 
        accept employment will result in undue hardship.
            (2) Regulations.--Regulations to carry out paragraph (1) 
        shall--
                    (A) with respect to positions in the executive 
                branch, be prescribed by the President (or his 
                designee);
                    (B) with respect to positions in the legislative 
                branch, be prescribed jointly by the President pro 
                tempore of the Senate and the Speaker of the House of 
                Representatives (or their designees); and
                    (C) with respect to positions in the judicial 
                branch, be prescribed by the Chief Justice of the 
                United States (or his designee).
            (3) Child support defined.--For purposes of this 
        subsection, the term ``child support'' has the meaning given 
        such term in section 462(b) of the Social Security Act (42 
        U.S.C. 662(b)).

SEC. 103. DENIAL OF PASSPORTS TO NONCUSTODIAL PARENTS SUBJECT TO STATE 
              ARREST WARRANTS IN CASES OF NONPAYMENT OF CHILD SUPPORT.

    The Secretary of State is authorized to refuse a passport or 
revoke, restrict, or limit a passport in any case in which the 
Secretary of State determines or is informed by competent authority 
that the applicant or passport holder is a noncustodial parent who is 
the subject of an outstanding State warrant of arrest for nonpayment of 
child support, where the amount in controversy is not less than 
$10,000.

SEC. 104. FAIR CREDIT REPORTING ACT AMENDMENT.

    Section 604 of the Consumer Credit Protection Act (15 U.S.C. 1681b) 
is amended by adding at the end the following:
    ``(4) To a State agency administering a State plan under section 
454 of the Social Security Act, for use to establish or modify a child 
support award.''.

SEC. 105. NATIONAL REPORTING OF NEW HIRES AND CHILD SUPPORT 
              INFORMATION.

    (a) In General.--The Secretary of the Treasury, in consultation 
with the Secretary of Labor, shall establish a system of reporting of 
new employees by requiring employers to provide a copy of every new 
employee's W-4 form to the child support enforcement agency of the 
State in which the employment is located.
    (b) Expanded Use of Form.--The Secretary of the Treasury shall 
modify the W-4 form completed by the new employee to include--
            (1) whether a child support obligation is owed by the new 
        employee, and if so, to whom such obligation is payable and the 
        amount of such obligation,
            (2) whether payment of such obligation is to be by income 
        withholding, and
            (3) whether the new employee has health care insurance 
        available.

             TITLE II--INTERSTATE CHILD SUPPORT ENFORCEMENT

SEC. 201. INTERSTATE RECOGNITION OF CHILD SUPPORT AND PARENTAGE ORDERS.

    (a) In General.--Chapter 115 of title 28, United States Code, is 
amended by inserting after section 1738A the following:
``Sec. 1738B. Full faith and credit to child support and parentage 
              orders
    ``(a) As used in this section:
            ``(1) The term `child' means any individual who has not 
        attained the age of 18 years, and any individual who has 
        attained the age of 18 years for whom a child support order has 
        been issued pursuant to the laws of a State.
            ``(2) The term `child support' includes periodic and lump-
        sum payments for current and past due economic support, 
        payments of premiums for health insurance for children, 
        payments for or provision of child care, and payments for 
        educational expenses.
            ``(3) The term `child support order' means a judgment, 
        decree or order of a court requiring the payment of money, 
        whether in periodic amounts or lump sum, for the support of a 
        child and includes permanent and temporary orders, initial 
        orders and modifications, ongoing support and arrearages.
            ``(4) The term `child's State' means, with respect to a 
        child, the State in which the child resides with a parent or an 
        individual acting as a parent.
            ``(5) The term `contestant' means an individual, including 
        a parent, who claims a right to receive child support or is 
        under an order to pay child support, and includes States and 
        political subdivisions to which support rights have been 
        assigned.
            ``(6) The term `court' means a court, administrative 
        process, or quasijudicial process of a State that is authorized 
        to--
                    ``(A) adjudicate parentage;
                    ``(B) establish the amount of support payable by a 
                contestant; or
                    ``(C) modify the amount of support payable by a 
                contestant.
            ``(7) The term `home State' means, with respect to a child, 
        the State in which, immediately preceding the time involved, 
        the child lived with his or her parents, a parent, or an 
        individual acting as parent, for at least 6 consecutive months 
        (including any periods of temporary absence), and if the child 
        has not attained the age of 6 months, the State in which the 
        child lived from birth with any of such individuals.
            ``(8) The term `individual acting as a parent' means an 
        individual, other than a parent, who has physical custody of a 
        child and who has either been awarded custody by a court or 
        claims a right to custody.
            ``(9) The terms `modification' and `modify' refer to a 
        change in a child support order or an order adjudicating 
        parentage that modifies, replaces, supersedes, or otherwise is 
        made subsequent to such prior order, whether or not made by the 
        same court that issued such prior order.
            ``(10) The term `State' means a State of the United States, 
        the District of Columbia, the Commonwealth of Puerto Rico, a 
        territory or possession of the United States, and Indian 
        country as defined in section 1151 of title 18, United States 
        Code.
    ``(b) The courts of each State shall recognize and enforce 
according to its terms a child support order or an order adjudicating 
parentage against an individual over whom personal jurisdiction has 
been exercised consistent with this section, and shall not modify such 
an order except as provided in subsection (f).
    ``(c) A court of a State may exercise personal jurisdiction over a 
nonresident contestant if there is any basis consistent with the 
constitution of the State and the Constitution of the United States for 
the exercise.
    ``(d) A court of a State which has issued a child support order or 
an order adjudicating parentage consistent with this section shall have 
continuing, exclusive jurisdiction of the order for so long as the 
State remains the child's State or the residence of any contestant, 
unless another State, acting in accordance with subsection (f), has 
modified the order.
    ``(e) Before a court of a State makes a child support order or 
adjudicates parentage, reasonable notice and opportunity to be heard 
shall be given to the contestants.
    ``(f) A court of a State may modify a child support order or an 
order adjudicating parentage issued by a court of another State if--
            ``(1) each contestant has filed written consent for the 
        court of the State to modify the order and assume continuing, 
        exclusive jurisdiction of the order; and
            ``(2) the court of the State otherwise has jurisdiction to 
        issue such an order.
    ``(g) A court of a State which no longer has continuing, exclusive 
jurisdiction of a child support order or an order adjudicating 
parentage may enforce the order with respect to unsatisfied obligations 
which accrued before the date the order is modified in accordance with 
subsection (f).
    ``(h) A court of a State shall not exercise jurisdiction in any 
proceeding for a child support order or an adjudication of parentage 
commenced during the pendency of a proceeding in a court of another 
State when the court of the other State is exercising jurisdiction 
consistent with this section unless--
            ``(1) the proceeding was filed in the State before the 
        expiration of time allowed in the other State for filing a 
        responsive pleading challenging the exercise of jurisdiction by 
        the other State;
            ``(2) the contesting party timely challenges the exercise 
        of jurisdiction by the other State; and
            ``(3) if applicable, the court is in the home State of the 
        child.
    ``(i)(1) Except as provided in paragraphs (2) and (3), the forum 
State's law shall apply in a proceeding to establish, modify, or 
enforce a child support order or an order adjudicating parentage.
    ``(2) The courts of a State shall apply the law of the State that 
issued a child support order or an order adjudicating parentage in 
interpreting such an order.
    ``(3) In an action to enforce a child support order or an order 
adjudicating parentage, the statute of limitations under the laws of 
the forum State or the issuing State, whichever is longer, shall 
apply.''.
    (b) Clerical Amendment.--The chapter analysis for such chapter is 
amended by inserting after the item relating to section 1738A the 
following:

``1738B. Full faith and credit to child support and parentage 
                            orders.''.

                        TITLE III--HIDING ASSETS

SEC. 301. FRAUDULENT TRANSFER PURSUIT.

    Section 466(a) of the Social Security Act (42 U.S.C. 666(a)), as 
amended by section 101, is amended by inserting after paragraph (12) 
the following:
            ``(13) Procedures requiring that, in any case related to 
        child support, any transfer of property by an individual who 
        owes a child support arrearage shall be presumed to be made 
        with the intent to avoid payment of the arrearage, and may be 
        rebutted by evidence to the contrary.''.

SEC. 302. FRAUDULENT TRANSFER PURSUIT.

    Section 466(a) of the Social Security Act (42 U.S.C. 666(a)), as 
amended by section 101 and section 301, is amended by inserting after 
paragraph (12) the following new paragraph:
            ``(14) Procedures that allow the State to void fraudulent 
        conveyances of property that are made in an attempt to avoid 
        child support obligations.''.