Child Support Reform Act of 1997

Summary: TABLE OF CONTENTS: 
     Title I:  National Child Support Guidelines Commission 
     Title II:  Centralized Child Support Enforcement 
     Title III:  Effective Dates 
Child Support Reform Act of 1997 - 
Title I:  National Child Support Guidelines Commission
 - Establishes the National Child Support Guidelines Commission to study and evaluate various child support guidelines used by the States, identify their benefits and deficiencies, and recommend improvements. Prescribes matters for Commission consideration.  Requires the Commission to submit a final assessment to the Congress and the President on how State child support guideline models are serving custodial parents and children. 
Title II:  Centralized Child Support Enforcement
 - Directs the Secretary of the Treasury to:  (1) establish an Office of the Assistant Commissioner for Centralized Child Support Enforcement in the Internal Revenue Service to locate absent parents, facilitate enforcement of child support obligations, and establish a Division of Enforcement by October 1, 1997; and (2) promulgate regulations for the coordination of activities among the Office of the Assistant Commissioner for Centralized Child Support Enforcement, the Assistant Secretary for Children and Families of the Department of Health and Human Services, and the States. 
(Sec. 202) Amends the Social Security Act with respect to the Federal Parent Locator Service to direct the Secretary of Health and Human Services to:  (1) compare information in the National Directory of New Hires against information in the support case abstracts in the Federal Case Registry of Child Support Orders at least every two business days; and (2) report matches of the two files within two business days to the Division of Enforcement for centralized enforcement. 
(Sec. 203) Prescribes Division of Enforcement duties. 
Authorizes the Office of the Assistant Commissioner for Centralized Child Support Enforcement, through the Division of Enforcement, to assess and collect unpaid arrearages under the same enforcement guidelines as pertain to a tax imposed under the Internal Revenue Code whose collection would be jeopardized by delay.  Authorizes use of the Federal courts for such enforcement. 
(Sec. 204) Requires State plans for child and spousal support to provide for State cooperation with the Office of the Assistant Commissioner for Centralized Child Support Enforcement to facilitate information exchange regarding child support cases and the enforcement of orders by the Commissioner. 
Title III:  Effective Dates
 - Sets forth the effective dates for this Act.

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Child Support 
Reform Act of 1997''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
         TITLE I--NATIONAL CHILD SUPPORT GUIDELINES COMMISSION

Sec. 101. National Child Support Guidelines Commission.
            TITLE II--CENTRALIZED CHILD SUPPORT ENFORCEMENT

Sec. 201. Establishment of the Office of the Assistant Commissioner for 
                            Centralized Child Support Enforcement.
Sec. 202. Use of Federal Case Registry of Child Support Orders and 
                            National Directory of New Hires.
Sec. 203. Division of Enforcement.
Sec. 204. State plan requirements.
Sec. 205. Definitions.
                       TITLE III--EFFECTIVE DATES

Sec. 301. Effective dates.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds that--
            (1) an increasing number of children are raised in families 
        with only one parent present, usually the mother, and these 
        families are 5 times as likely to be poor as 2-parent families;
            (2) the failure of noncustodial parents to pay their fair 
        share of child support is a major contributor to poverty among 
        single-parent families;
            (3) in 1990, there was a $33,700,000,000 gap between the 
        amount of child support that was received and the amount that 
        could have been collected;
            (4) in 1991, the aggregate child support income deficit was 
        $5,800,000,000;
            (5) as of spring 1992, only 54 percent, or 6,200,000, of 
        custodial parents received awards of child support, and of the 
        6,200,000 custodial parents awarded child support, 5,300,000 
        were supposed to receive child support payments in 1991;
            (6) of the custodial parents described in paragraph (5), 
        approximately \1/2\ of the parents due child support received 
        full payment and the remaining \1/2\ were divided equally 
        between those receiving partial payment (24 percent) and those 
        receiving nothing (25 percent);
            (7) as a result of the situation described in paragraphs 
        (5) and (6), increasing numbers of families are turning to the 
        child support program established under part D of title IV of 
        the Social Security Act (42 U.S.C. 651 et seq.) for assistance, 
        accounting for an over 40 percent increase in the caseload 
        under that program during the 1991 to 1995 period;
            (8) during the 1991 to 1995 period, the percentage of cases 
        under the title IV-D child support program in which a 
        collection was made declined from 19.3 percent to 18.9 percent;
            (9) the Internal Revenue Service has improved its 
        performance in making collections in cases referred to it by 
        the title IV-D child support program, moving from successfully 
        intercepting Federal income tax refunds in 992,000 cases in 
        1992 to successfully intercepting Federal income tax refunds in 
        1,200,000 cases in 1996;
            (10) in cases under the title IV-D child support program in 
        which a collection is made, approximately \1/3\ of such cases 
        are cases where some or all of the collection is a result of a 
        Federal tax refund intercept;
            (11) in 1995, the average amount collected for families in 
        which the Internal Revenue Service made a collection through 
        the Federal tax refund intercept method was $827 for families 
        receiving Aid to Families with Dependent Children and $847 for 
        other families; and
            (12) State-by-State child support guidelines have resulted 
        in orders that vary significantly from State to State, 
        resulting in low awards and inequities for children.
    (b) Purpose.--It is the purpose of this Act to--
            (1) provide for the review of various State child support 
        guidelines to determine how custodial parents and children are 
        served by such guidelines;
            (2) increase the economic security of children, improve the 
        enforcement of child support awards through a more centralized, 
        efficient system; and
            (3) improve the enforcement of child support orders by 
        placing responsibility for enforcement in the Internal Revenue 
        Service.

         TITLE I--NATIONAL CHILD SUPPORT GUIDELINES COMMISSION

SEC. 101. NATIONAL CHILD SUPPORT GUIDELINES COMMISSION.

    (a) Establishment.--There is hereby established a commission to be 
known as the ``National Child Support Guidelines Commission'' (in this 
section referred to as the ``Commission'').
    (b) General Duties.--The Commission shall study and evaluate the 
various child support guidelines currently in use by the States, 
identify the benefits and deficiencies of such guidelines in providing 
adequate support for children, and recommend any needed improvements.
    (c) Matters for Consideration by the Commission.--In making the 
recommendations concerning guidelines required under subsection (b), 
the Commission shall consider--
            (1) matters generally applicable to all support orders, 
        including--
                    (A) the relationship between the guideline amounts 
                and the actual costs of raising children; and
                    (B) how to define income and under what 
                circumstances income should be imputed;
            (2) the appropriate treatment of cases in which either or 
        both parents have financial obligations to more than 1 family, 
        including the effect (if any) to be given to--
                    (A) the income of either parent's spouse; and
                    (B) the financial responsibilities of either parent 
                for other children or stepchildren;
            (3) the appropriate treatment of expenses for child care 
        (including care of the children of either parent, and work-
        related or job-training-related child care);
            (4) the appropriate treatment of expenses for health care 
        (including uninsured health care) and other extraordinary 
        expenses for children with special needs;
            (5) the appropriate duration of support by 1 or both 
        parents, including--
                    (A) support (including shared support) for post-
                secondary or vocational education; and
                    (B) support for disabled adult children;
            (6) procedures to automatically adjust child support orders 
        periodically to address changed economic circumstances, 
        including changes in the consumer price index or either 
        parent's income and expenses in particular cases; and
            (7) whether, or to what extent, support levels should be 
        adjusted in cases in which custody is shared or in which the 
        noncustodial parent has extended visitation rights.
    (d) Membership.--
            (1) Number; appointment.--
                    (A) In general.--The Commission shall be composed 
                of 12 individuals appointed jointly by the Secretary of 
                Health and Human Services and the Congress, not later 
                than January 15, 1998, of which--
                            (i) 2 shall be appointed by the Chairman of 
                        the Committee on Finance of the Senate, and 1 
                        shall be appointed by the ranking minority 
                        member of the Committee;
                            (ii) 2 shall be appointed by the Chairman 
                        of the Committee on Ways and Means of the House 
                        of Representatives, and 1 shall be appointed by 
                        the ranking minority member of the Committee; 
                        and
                            (iii) 6 shall be appointed by the Secretary 
                        of Health and Human Services.
                    (B) Qualifications of members.--Members of the 
                Commission shall have expertise and experience in the 
                evaluation and development of child support guidelines. 
                At least 1 member shall represent advocacy groups for 
                custodial parents, at least 1 member shall represent 
                advocacy groups for noncustodial parents, and at least 
                1 member shall be the director of a State program under 
                part D of title IV of the Social Security Act.
            (2) Terms of office.--Each member shall be appointed for a 
        term of 2 years. A vacancy in the Commission shall be filled in 
        the manner in which the original appointment was made.
    (e) Commission Powers, Compensation, Access to Information, and 
Supervision.--The first sentence of subparagraph (C), the first and 
third sentences of subparagraph (D), subparagraph (F) (except with 
respect to the conduct of medical studies), clauses (ii) and (iii) of 
subparagraph (G), and subparagraph (H) of section 1886(e)(6) of the 
Social Security Act shall apply to the Commission in the same manner in 
which such provisions apply to the Prospective Payment Assessment 
Commission.
    (f) Report.--Not later than 2 years after the appointment of 
members, the Commission shall submit to the President, the Committee on 
Ways and Means of the House of Representatives, and the Committee on 
Finance of the Senate, a final assessment of how States, through 
various child support guideline models, are serving custodial parents 
and children.
    (g) Termination.--The Commission shall terminate 6 months after the 
submission of the report described in subsection (e).

            TITLE II--CENTRALIZED CHILD SUPPORT ENFORCEMENT

SEC. 201. ESTABLISHMENT OF THE OFFICE OF THE ASSISTANT COMMISSIONER FOR 
              CENTRALIZED CHILD SUPPORT ENFORCEMENT.

    (a) In General.--For purposes of locating absent parents and 
facilitating the enforcement of child support obligations, the 
Secretary of the Treasury shall establish within the Internal Revenue 
Service an Office of the Assistant Commissioner for Centralized Child 
Support Enforcement which shall establish not later than October 1, 
1997, a Division of Enforcement for the purpose of carrying out the 
duties described in section 203.
    (b) Coordination.--The Secretary of the Treasury, in consultation 
with the Secretary of Health and Human Services shall issue regulations 
for the coordination of activities among the Office of the Assistant 
Commissioner for Centralized Child Support Enforcement, the Assistant 
Secretary for Children and Families, and the States, to facilitate the 
purposes of this title.

SEC. 202. USE OF FEDERAL CASE REGISTRY OF CHILD SUPPORT ORDERS AND 
              NATIONAL DIRECTORY OF NEW HIRES.

    Section 453(j)(2) of the Social Security Act (42 U.S.C. 653(j)(2)) 
is amended to read as follows:
            ``(2) Information comparisons.--
                    ``(A) In general.--For the purpose of locating 
                individuals in a paternity establishment case or a case 
                involving the establishment, modification, or 
                enforcement of a support order, the Secretary shall--
                            ``(i) compare information in the National 
                        Directory of New Hires against information in 
                        the support case abstracts in the Federal Case 
                        Registry of Child Support Orders not less often 
                        than every 2 business days; and
                            ``(ii) within 2 business days after such a 
                        comparison reveals a match with respect to an 
                        individual, report the information to the 
                        Division of Enforcement for centralized 
                        enforcement.
                    ``(B) Cases referred to division of enforcement.--
                If a case is referred to the Division of Enforcement by 
                the Secretary under subparagraph (A)(ii), the Division 
                of Enforcement shall--
                            ``(i) notify the custodial and noncustodial 
                        parents of such referral,
                            ``(ii) direct the employer to remit all 
                        child support payments to the Internal Revenue 
                        Service;
                            ``(iii) receive all child support payments 
                        made pursuant to the case;
                            ``(iv) record such payments; and
                            ``(v) promptly disburse the funds--
                                    ``(I) if there is an assignment of 
                                rights under section 408(a)(3), in 
                                accordance with section 457, and
                                    ``(II) in all other cases, to the 
                                custodial parent.''.

SEC. 203. DIVISION OF ENFORCEMENT.

    (a) In General.--With respect to the Division of Enforcement, the 
duties described in this section are as follows:
            (1) Enforce all child support orders referred to the 
        Division of Enforcement--
                    (A) under section 453(j)(2)(A)(ii) of the Social 
                Security Act (42 U.S.C. 653(j)(2)(A)(ii));
                    (B) by the State in accordance with section 454(35) 
                of such Act (42 U.S.C. 654(35)); and
                    (C) under section 452(b) of such Act (42 U.S.C. 
                652(b)).
            (2) Enforce a child support order in accordance with the 
        terms of the abstract contained in the Federal Case Registry of 
        Child Support Orders or the modified terms of such an order 
        upon notification of such modifications by the Secretary of 
        Health and Human Services.
            (3) Enforce medical support provisions of any child support 
        order using any means available under State or Federal law.
            (4) Receive and process requests for a Federal income tax 
        refund intercept made in accordance with section 464 of the 
        Social Security Act (42 U.S.C. 664).
    (b) Failure To Pay Amount Owing.--With respect to any child support 
order being enforced by the Division of Enforcement, if an individual 
fails to pay the full amount required to be paid on or before the due 
date for such payment, the Office of the Assistant Commissioner for 
Centralized Child Support Enforcement, through the Division of 
Enforcement, may assess and collect the unpaid amount in the same 
manner, with the same powers, and subject to the same limitations 
applicable to a tax imposed by subtitle C of the Internal Revenue Code 
of 1986 the collection of which would be jeopardized by delay.
    (c) Use of Federal Courts.--The Office of the Assistant 
Commissioner for Centralized Child Support Enforcement, through the 
Division of Enforcement, may utilize the courts of the United States to 
enforce child support orders against absent parents upon a finding 
that--
            (1) the order is being enforced by the Division of 
        Enforcement; and
            (2) utilization of such courts is a reasonable method of 
        enforcing the child support order.
    (d) Conforming Amendments.--
            (1) Section 452(a)(8) (42 U.S.C. 652(a)(8)) is repealed.
            (2) Section 452(c) (42 U.S.C. 652(c)) is repealed.

SEC. 204. STATE PLAN REQUIREMENTS.

    (a) In General.--Section 454 of the Social Security Act (42 U.S.C. 
654) is amended by striking ``and'' at the end of paragraph (32), by 
striking the period at the end of paragraph (33) and inserting ``; 
and'', and by inserting after paragraph (33) the following new 
paragraph:
            ``(34) provide that the State will cooperate with the 
        Office of the Assistant Commissioner for Centralized Child 
        Support Enforcement to facilitate the exchange of information 
        regarding child support cases and the enforcement of orders by 
        the Commissioner.''.
    (b) Conforming Amendment.--Section 455(b) of the Social Security 
Act (42 U.S.C. 655(b)) is amended by striking ``454(34)'' and inserting 
``454(33)''.

SEC. 205. DEFINITIONS.

    Any term used in this title which is also used in part D of title 
IV of the Social Security Act (42 U.S.C. 651 et seq.) shall have the 
meaning given such term by such part.

                       TITLE III--EFFECTIVE DATES

SEC. 301. EFFECTIVE DATES.

    (a) In General.--Except as otherwise provided in this Act or 
subsection (b), the amendments made by this Act take effect on the date 
of enactment of this Act.
    (b) Special Rule.--In the case of a State that the Secretary of 
Health and Human Services determines requires State legislation (other 
than legislation appropriating funds) in order to meet the additional 
requirements imposed by the amendments made by this Act, the State 
shall not be regarded as failing to comply with the requirements of 
such amendments before 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 enactment of this Act. For 
purposes of this subsection, in the case of a State that has a 2-year 
legislative session, each year of the session shall be treated as a 
separate regular session of the State legislature.