I

103D CONGRESS

2D SESSION H. R. 5225

To strengthen child support enforcement.

IN THE HOUSE OF REPRESENTATIVES

OCTOBER 6, 1994

Mr. MENENDEZ introduced the following bill; which was referred jointly to the

Committees on Ways and Means, Education and Labor, and Banking, Finance and Urban Affairs

A BILL

To strengthen child support enforcement.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Child Support Responsibility Act of 1994’’.

6 (b) TABLE OF CONTENTS.—The table of contents of

7 this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. National child support order registry.

Sec. 3. Increased Federal financial participation for States with unified child

support enforcement programs.

Sec. 4. Modification of W–4 reporting requirements to provide for reporting of

child support obligations of employees.

Sec. 5. Collection of child support.

Sec. 6. Distribution of portion of child support collected.

Sec. 7. Workers’ compensation benefits subject to garnishment.
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Sec. 8. Liens on certificates of vehicle title.

Sec. 9. Attachment of bank accounts.

Sec. 10. Seizure of lottery winnings, settlements, payouts, awards, and bequests, and sale of forfeited property, to pay child support arrearages.

Sec. 11. Use of administrative process to impose liens against and seize property of persons delinquent in child support payments.

Sec. 12. Fraudulent transfer pursuit.

Sec. 13. Technical correction to ERISA definition of medical child support

order.

Sec. 14. Inclusion in consumer credit reports of information on overdue child

support obligations of the consumer.

Sec. 15. Hold on occupational, professional, and business licenses.

Sec. 16. Driver’s licenses and vehicle registrations denied to persons delinquent

in child support payments or failing to appear in child support

cases.

Sec. 17. Simplified process for review and adjustment of certain child support

orders.

1 SEC. 2. NATIONAL CHILD SUPPORT ORDER REGISTRY.

2 (a) ESTABLISHMENT.—

3 (1) IN GENERAL.—The Secretary of the Treas4 ury shall establish in the Internal Revenue Service

5 a national registry of all child support orders.

6 (2) CHILD SUPPORT ORDER DEFINED.—As

7 used in this section, the term ‘‘child support order’’

8 means an order, issued or modified by a State court

9 or an administrative process established under State

10 law, that requires an individual to make payments

11 for support and maintenance of a child or of a child

12 and the parent with whom the child is living.

13 (b) TRANSMISSION OF COPIES OF CHILD SUPPORT

14 ORDERS TO THE NATIONAL REGISTRY.—Section 466(a)

15 of the Social Security Act (42 U.S.C. 666(a)) is amended

16 by inserting after paragraph (11) the following:

17 ‘‘(12) Procedures to ensure that—
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1 ‘‘(A) each child support order issued or

2 modified in the State contains the social secu3 rity account number of each parent with rights

4 or obligations under the order;

5 ‘‘(B) within 5 days after the issuance or

6 modification of a child support order in the

7 State, a copy of the order is transmitted to the

8 national child support order registry established

9 under section 2(a) of the Child Support Re10 sponsibility Act of 1994;

11 ‘‘(C) within 2 years after the date of the

12 enactment of this paragraph, a copy of each

13 child support order being enforced by the State

14 pursuant to this part which has not been trans15 mitted pursuant to subparagraph (B) is trans16 mitted to the national child support order reg17 istry;

18 ‘‘(D) within 5 years after the date of the

19 enactment of this paragraph, a copy of each

20 child support issued or modified in the State

21 which has not been transmitted pursuant to

22 subparagraph (B) or (C) and which a party to

23 the order has requested be sent to the national

24 child support order registry be transmitted to

25 the registry; and
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1 ‘‘(E) with each order transmitted pursuant

2 to subparagraph (B), (C), or (D)—

3 ‘‘(i) a notice is included as to the date

4 the order is required or scheduled to be re5 viewed by a court or an administrative

6 process established under State law; and

7 ‘‘(ii) a certified statement of arrears

8 (if any) owed under the order is included

9 if a party to the order is receiving services

10 under the State plan.’’.

11 (c) MAINTENANCE OF ABSTRACTS OF CHILD SUP12 PORT ORDERS.—The national registry shall maintain an

13 abstract of each child support order, which shall contain

14 the following information:

15 (1) The names, addresses, and social security

16 account numbers of each individual with rights or

17 obligations under the order, to the extent that the

18 authority that issued the order has not prohibited

19 the release of such information.

20 (2) The name and date of birth of any child

21 with respect to whom payments are to be made

22 under the order.

23 (3) The dollar amount of child support required

24 to be paid on a monthly basis under the order.
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1 (4) The date the order was issued or most re2 cently modified, and each date the order is required

3 or scheduled to be reviewed by a court or an admin4 istrative process established under State law.

5 (5) Any orders superseded by the order.

6 (6) Such other information as the Secretary of

7 the Treasury, in consultation with the Secretary of

8 Health and Human Services, shall, by regulation re9 quire.

10 (d) PROVISION OF CHILD SUPPORT INFORMATION TO

11 EMPLOYERS.—Upon receipt from an employer of a

12 W–4 form completed pursuant to section 4(b) of this Act

13 by an employee of the employer, the national registry shall

14 report to the employer such information as the national

15 registry may have as to—

16 (1) whether the employee has a legal obligation

17 to provide child support (as defined in section

18 462(b) of the Social Security Act) which is to be col19 lected, in whole or in part, through wage withholding

20 pursuant to an order issued by a State court or an

21 order of an administrative process established under

22 State law; and

23 (2) the aggregate amount of all such obliga24 tions.

25 (e) LAW ENFORCEMENT ASSISTANCE.—
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1 (1) INFORMATION ACCESS.—For the sole pur2 pose of locating a parent to establish a child support

3 order or a parent who owes a child support arrear4 age, each child support enforcement agency shall—

5 (A) have access to the National Law En6 forcement Telecommunications Network and to

7 the National Criminal Information Center; and

8 (B) receive an access code number, re9 ferred to as an ORI number.

10 (2) GRANT REDUCTION FOR FAILURE TO RE11 PORT.—A State that fails to report warrants issued

12 in child support cases to the designated State law

13 enforcement agencies on the first day of each fiscal

14 year succeeding the first fiscal year beginning after

15 September 30, 1995, shall receive a 10 percent re16 duction of funds received under the Omnibus Crime

17 Control and Safe Streets Act of 1968.

18 SEC. 3. INCREASED FEDERAL FINANCIAL PARTICIPATION

19 FOR STATES WITH UNIFIED CHILD SUPPORT

20 ENFORCEMENT PROGRAMS.

21 Section 455(a)(2) of the Social Security Act (42

22 U.S.C. 655(a)(2)) is amended—

23 (1) by inserting ‘‘(A)’’ after ‘‘(2)’’;
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1 (2) by redesignating subparagraphs (A), (B),

2 and (C) as clauses (i), (ii), and (iii), respectively;

3 and

4 (3) by adding after and below the end the fol5 lowing:

6 ‘‘(B) The percent described in this paragraph for a

7 State for a quarter in a fiscal year shall be the percent

8 specified in subparagraph (A) for the fiscal year increased

9 by 5 percentage points if the following apply to the State

10 child support enforcement program:

11 ‘‘(i) All authority, accountability, and respon12 sibility for the program is centered at the State level

13 in a unified State agency.

14 ‘‘(ii) The program is administered by a single

15 agency, and policymaking for the program is central16 ized.

17 ‘‘(iii) There is statewide uniformity of case18 processing procedures and forms.

19 ‘‘(iv) There is a uniform hearing and appeal

20 process.

21 ‘‘(v) All financing decisions are made at the

22 State level.

23 ‘‘(vi) All non-Federal funding is appropriated at

24 the State level.
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1 ‘‘(vii) All personnel and contracting decision

2 making is made by the State agency, and all person3 nel are employees of the State agency, except that

4 the Secretary may by regulation establish exceptions

5 with respect to not more than 10 percent of person6 nel.’’.

7 SEC. 4. MODIFICATION OF W–4 REPORTING REQUIREMENTS

8 TO PROVIDE FOR REPORTING OF CHILD SUP9 PORT OBLIGATIONS OF EMPLOYEES.

10 (a) ESTABLISHMENT OF REPORTING SYSTEM.—The

11 Secretary of the Treasury, in consultation with the Sec12 retary of Labor, shall establish a system for the reporting

13 of information relating to child support obligations of em14 ployees that meets the requirements of this section.

15 (b) EMPLOYEE OBLIGATIONS.—Under the system,

16 each employee shall be required to file with the employer

17 of the employee, within 5 days after the later of the effec18 tive date of this section or the date the employee is hired,

19 a W–4 form that indicates—

20 (1) whether the employee has a legal obligation

21 to provide child support (as defined in section

22 462(b) of the Social Security Act) which is to be col23 lected, in whole or in part, through wage withholding

24 pursuant to an order issued by a State court or an
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1 order of an administrative process established under

2 State law; and

3 (2) if so—

4 (A) the aggregate amount of all such obli5 gations; and

6 (B) the name and address of any person to

7 whom the employee has such an obligation.

8 (c) EMPLOYER OBLIGATIONS.—

9 (1) IN GENERAL.—Subtitle C of the Internal

10 Revenue Code of 1986 (relating to employment

11 taxes) is amended by inserting after chapter 24 the

12 following new chapter:

13 ‘‘CHAPTER 24A—COLLECTION OF CHILD

14 SUPPORT OBLIGATIONS AT SOURCE

15 ON WAGES

‘‘Sec. 3411. Child support obligations collected at source.

16 ‘‘SEC. 3411. CHILD SUPPORT OBLIGATIONS COLLECTED AT

17 SOURCE.

18 ‘‘(a) REQUIREMENT OF WITHHOLDING.—

19 ‘‘(1) WAGE WITHHOLDING AS INDICATED BY

20 THE EMPLOYEE.—Each employer who receives a

21 completed W–4 form from an employee pursuant to

22 section 4(b) of the Child Support Responsibility Act

23 of 1994 which indicates that the employee has a
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1 legal obligation to provide child support (as defined

2 in section 462(b) of the Social Security Act) shall—

3 ‘‘(A) deduct and withhold from the wages

4 of the employee the amount indicated on the

5 W–4 form as a child support obligation;

6 ‘‘(B) send such amount to Secretary; and

7 ‘‘(C) forward the form to the national child

8 support order registry.

9 ‘‘(2) CORRECTION OF WITHHOLDING INSTRUC10 TIONS.—If the national child support order registry

11 notifies the employer that an employee has an obli12 gation referred to in paragraph (1), the employer

13 shall—

14 ‘‘(A) deduct and withhold from the wages

15 of the employee the greater of—

16 ‘‘(i) the amount indicated on the

17 W–4 form as a child support obligation; or

18 ‘‘(ii) the amount that such registry in19 dicates is to be deducted and withheld

20 from the wages of the employee to satisfy

21 such obligation; and

22 ‘‘(B) send the amount so withheld to the

23 Secretary.

24 ‘‘(b) CERTAIN OBLIGATIONS EXEMPT.—This section

25 shall not apply to a child support obligation if the order
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1 requiring payment of such obligation specifies that such

2 obligation is exempt from the requirements of this section.

3 ‘‘(c) LIABILITY FOR PAYMENT.—The employer shall

4 be liable for the payment of amounts deducted and with5 held under subsection (a) to the Secretary.

6 ‘‘(d) NATIONAL CHILD SUPPORT ORDER REG7 ISTRY.—For purposes of this section, the term ‘national

8 child support order registry’ means the national registry

9 of all child support orders established under section 2 of

10 the Child Support Responsibility Act of 1994.

11 ‘‘(e) SPECIAL RULES.—For purposes of this chapter

12 (and so much of subtitle F as relates to this chapter), any

13 amount required to be deducted and withheld under this

14 section shall be treated as if it were a tax withheld under

15 chapter 24 and rules similar to the rules of chapter 24

16 shall apply.’’

17 (2) CLERICAL AMENDMENT.—The table of

18 chapters for subtitle C of such Code is amended by

19 inserting after the item relating to chapter 24 the

20 following new item:

‘‘Chapter 24A. Child support obligations collected at source.’’

21 SEC. 5. COLLECTION OF CHILD SUPPORT.

22 (a) IN GENERAL.—Chapter 77 of the Internal Reve23 nue Code of 1986 (relating to miscellaneous provisions)

24 is amended by adding at the end thereof the following new

25 section:
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1 ‘‘SEC. 7524. COLLECTION OF CHILD SUPPORT.

2 ‘‘(a) MONTHLY PAYMENTS BY INDIVIDUALS WITH

3 NO OR INSUFFICIENT WAGE WITHHOLDING FOR CHILD

4 SUPPORT.—

5 ‘‘(1) IN GENERAL.—Each individual who has a

6 child support payment shortfall for any month shall

7 pay an amount equal to such shortfall to the Sec8 retary not later than the close of such month or

9 such earlier date specified by the Secretary.

10 ‘‘(2) CHILD SUPPORT PAYMENT SHORTFALL.—

11 For purposes of this subsection, the term ‘child sup12 port payment shortfall’ means, with respect to any

13 month, an amount equal to the excess (if any) of—

14 ‘‘(A) the amount of the applicable child

15 support obligation for such month, over

16 ‘‘(B) the amount (if any) deducted and

17 withheld under section 3411 from the wages

18 paid to such individual during such month.

19 ‘‘(3) CERTAIN OBLIGATIONS EXEMPT.—This

20 subsection shall not apply to a child support obliga21 tion if the order requiring payment of such obliga22 tion specifies that such obligation is exempt from the

23 requirements of this subsection.

24 ‘‘(b) PAYMENTS OF ARREARAGES BY INDIVIDUALS

25 NO LONGER EXEMPT FROM WITHHOLDING OR MONTHLY

26 PAYMENTS.—
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1 ‘‘(1) IN GENERAL.—If—

2 ‘‘(A) for any month ending with or within

3 the taxable year, a child support obligation was

4 exempt from section 3111 and subsection (a) of

5 this section,

6 ‘‘(B) such obligation ceases to be so ex7 empt during such year, and

8 ‘‘(C) such individual failed to pay the full

9 amount of such obligation for any month end10 ing with or within such year for which such ob11 ligation was so exempt,

12 then such individual shall pay (not later than the

13 date specified by the Secretary) an amount equal to

14 the excess of the full amount of such obligation for

15 the months referred to in subparagraph (A) over the

16 amount paid before such date under such obligation

17 for such months.

18 ‘‘(2) DETERMINATION OF AMOUNT REQUIRED

19 TO BE PAID.—Subsection (d) shall apply to an

20 amount required to be paid under this subsection

21 only after the Secretary’s determination of such

22 amount (after a hearing on the record) becomes

23 final.

24 ‘‘(c) RECONCILIATION OF CHILD SUPPORT OBLIGA25 TION AND PAYMENTS ON INCOME TAX RETURN.—
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1 ‘‘(1) IN GENERAL.—Each applicable child sup2 port obligation of any individual for months ending

3 with or within any taxable year shall be paid—

4 ‘‘(A) not later than the last date (deter5 mined without regard to extensions) prescribed

6 for filing the individual’s return of tax imposed

7 by chapter 1 for such taxable year, and

8 ‘‘(B)(i) if such return is filed not later

9 than such date, with such return, or

10 ‘‘(ii) in any case not described in clause (i),

11 in such manner as the Secretary may by regula12 tions prescribe.

13 ‘‘(2) OFFSET FOR WITHHELD CHILD SUPPORT,

14 ETC.—There shall be allowed as a credit against the

15 amount required to be paid under paragraph (1) by

16 an individual the sum of—

17 ‘‘(A) the amount (if any) deducted and

18 withheld under section 3411 from the wages re19 ceived by such individual during the taxable

20 year,

21 ‘‘(B) the amount (if any) paid by such in22 dividual under section 6654 by reason of sub23 section (f)(3) thereof for such taxable year,
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1 ‘‘(C) the amount (if any) paid by such in2 dividual under subsections (a) and (b) for such

3 taxable year, and

4 ‘‘(D) in the case of an obligation which

5 was exempt from the requirements of section

6 3411 and subsection (a) of this section for only

7 a portion of the taxable year, the amount paid

8 (for such portion of the taxable year) by such

9 individual directly to the person to whom the

10 obligation is owed (or, if such person has as11 signed to a State the right to collect the obliga12 tion, the State).

13 ‘‘(3) CREDIT OR REFUND FOR PAYMENTS IN

14 EXCESS OF ACTUAL OBLIGATION.—There shall be al15 lowed as a credit against the tax imposed by subtitle

16 A for the taxable year an amount equal to the excess

17 (if any) of—

18 ‘‘(A) the aggregate of the amounts de19 scribed in subparagraphs (A), (B), (C), and (D)

20 of paragraph (2) for such taxable year, over

21 ‘‘(B) the aggregate of the applicable child

22 support obligations of the taxpayer for such

23 taxable year.
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1 The credit allowed by this paragraph shall be treated

2 for purposes of this title as allowed by subpart C of

3 part IV of subchapter A of chapter 1.

4 ‘‘(d) FAILURE TO PAY AMOUNT OWING.—If an indi5 vidual fails to pay the full amount required to be paid

6 under subsection (a), (b), or (c) on or before due date for

7 such payment, the Secretary shall assess and collect the

8 unpaid amount in the same manner, with the same pow9 ers, and subject to the same limitations applicable to a

10 tax imposed by subtitle C the collection of which would

11 be jeopardized by delay.

12 ‘‘(e) APPLICATION OF SECTION TO CHILD SUPPORT

13 ORDERS NOT INITIALLY SUBJECT TO SECTION.—

14 ‘‘(1) IN GENERAL.—In the case of a child sup15 port obligation which becomes an applicable child

16 support obligation for any month after January

17 1996, the amount required to be paid under sub18 section (a) for the first such month shall be in19 creased by the excess (if any) of—

20 ‘‘(A) the aggregate amount required to be

21 paid under such obligation for all months before

22 such month (including months in prior taxable

23 years), over
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1 ‘‘(B) the aggregate amount paid under

2 such obligation for all months before such

3 month.

4 ‘‘(2) CROSS REFERENCE.—

‘‘For agreements to pay tax in installments, see

section 6159.

5 ‘‘(f) APPLICABLE CHILD SUPPORT OBLIGATION.—

6 For purposes of this section, the term ‘applicable child

7 support obligation’ means a legal obligation to provide

8 child support (as defined in section 462(b) of the Social

9 Security Act), except that such term shall not include any

10 such obligation for any period during which section

11 466(a)(12) of the Social Security Act (42 U.S.C.

12 666(a)(12)) does not apply to the child support order with

13 respect thereto until the order is registered.’’

14 (b) WITHHELD CHILD SUPPORT TO BE SHOWN ON

15 W–2.—Subsection (a) of section 6051 of such Code is

16 amended by striking ‘‘and’’ at the end of paragraph (8),

17 by striking the period at the end of paragraph (9) and

18 inserting ‘‘, and’’, and by inserting after paragraph (9)

19 the following new paragraph:

20 ‘‘(10) the total amount deducted and withheld

21 as a child support obligation under section 3411.’’

22 (c) APPLICATION OF ESTIMATED TAX PENALTY.—

23 (1) Subsection (f) of section 6654 of such Code

24 (relating to failure by individual to pay estimated in-
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1 come tax) is amended by striking ‘‘minus’’ at the

2 end of paragraph (2) and inserting ‘‘plus’’, by redes3 ignating paragraph (3) as paragraph (4), and by in4 serting after paragraph (2) the following new para5 graph:

6 ‘‘(3) the aggregate applicable child support obli7 gation (as defined in section 7524(a)) of the tax8 payer for months ending with or within the taxable

9 year, minus’’.

10 (2) Paragraph (1) of section 6654(d) of such

11 Code is amended by adding at the end the following

12 new subparagraph:

13 ‘‘(D) DETERMINATION OF REQUIRED AN14 NUAL PAYMENT FOR TAXPAYERS REQUIRED TO

15 PAY CHILD SUPPORT.—In the case of a tax16 payer who is required under section 7524 to

17 pay an applicable child support obligation (as

18 defined in section 7524) for any month ending

19 with or within the taxable year, the required

20 annual payment shall be the sum of—

21 ‘‘(i) the amount determined under

22 subparagraph (B) without regard to sub23 section (f)(3), plus
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1 ‘‘(ii) the aggregate amount of such

2 obligation for all months ending with or

3 within the taxable year.’’

4 (3) CREDIT FOR WITHHELD AMOUNTS, ETC.—

5 Subsection (g) of section 6654 of such Code is

6 amended by adding at the end the following new

7 paragraph:

8 ‘‘(3) CHILD SUPPORT.—For purposes of apply9 ing this section, the sum of—

10 ‘‘(A) amounts deducted and withheld

11 under section 3411, and

12 ‘‘(B) amounts paid under subsections (a)

13 and (b) of section 7524,

14 shall be deemed to be a payment of the amount de15 scribed in subsection (f)(3) on the date such

16 amounts were actually withheld or paid, as the case

17 may be.’’

18 (d) CLERICAL AMENDMENT.—The table of sections

19 for chapter 77 of such Code is amended by adding at the

20 end thereof the following new item:

‘‘Sec. 7524. Collection of child support.’’

21 SEC. 6. DISTRIBUTION OF PORTION OF CHILD SUPPORT

22 COLLECTED.

23 (a) IN GENERAL.—The Secretary of the Treasury

24 shall pay to the appropriate payee the sum of the following
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1 amounts which are received by the Secretary on account

2 of a child support obligation payable to such payee:

3 (1) The amounts deducted and withheld under

4 section 3411 of the Internal Revenue Code of 1986.

5 (2) The amounts paid under section 6654 of

6 such Code (relating to estimated tax payments) by

7 reason of subsection (f)(3) thereof.

8 (3) The amounts paid under section 7524 of

9 such Code (relating to collection of child support).

10 (b) APPROPRIATE PAYEE.—As used in this section,

11 the term ‘‘appropriate payee’’ means, with respect to a

12 child support obligation—

13 (1) the person to whom the obligation is owed;

14 or

15 (2) if such person has assigned to a State the

16 right to collect the obligation, the State.

17 (c) INTEREST PAYABLE ON LATE PAYMENTS BY

18 SECRETARY.—If, within 10 days after the Secretary of the

19 Treasury receives an amount referred to in a paragraph

20 of subsection (a), the Secretary fails to pay any cor21 responding amount required to be paid under subsection

22 (a), the Secretary shall pay, in addition to the amount re23 quired to be paid, to the appropriate payee interest at the

24 underpayment rate (determined under section 6621 of

25 such Code, and compounded daily) on such amount for
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1 the period beginning on such date and ending on the date

2 paid.

3 (d) COORDINATION WITH RULES GOVERNING DIS4 TRIBUTION OF CHILD SUPPORT COLLECTED BY A

5 STATE.—Section 457 of the Social Security Act (42

6 U.S.C. 657) is amended by adding at the end the follow7 ing:

8 ‘‘(e) For purposes of this section, amounts received

9 by a State from the Secretary of the Treasury pursuant

10 to section 6(a) of the Child Support Responsibility Act of

11 1994 shall be considered amounts collected by the State

12 as child support pursuant to a plan approved under this

13 part.’’.

14 SEC. 7. WORKERS’ COMPENSATION BENEFITS SUBJECT TO

15 GARNISHMENT.

16 Section 462(f) of the Social Security Act (42 U.S.C.

17 662(f)) is amended—

18 (1) by striking ‘‘or’’ at the end of paragraph

19 (1);

20 (2) by striking the period at the end of para21 graph (2) and inserting ‘‘, or’’; and

22 (3) by adding at the end the following:

23 ‘‘(3) workers’ compensation benefits.’’.
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1 SEC. 8. LIENS ON CERTIFICATES OF VEHICLE TITLE.

2 Section 466(a) (42 U.S.C. 666(a)), as amended by

3 section 2(b) of this Act, is amended by inserting after

4 paragraph (12) the following:

5 ‘‘(13) Procedures under which the State shall

6 systematically place liens on vehicle titles for child

7 support arrearages determined under a court order

8 or an order of an administrative process established

9 under State law, using a method for updating the

10 value of the lien on a regular basis or allowing for

11 an expedited inquiry to and response from a govern12 mental payee for proof of the amount of arrears,

13 with an expedited method for the titleholder or the

14 individual owing the arrearage to contest the arrear15 age or to request a release upon fulfilling the sup16 port obligation, and under which such a lien has

17 precedence over all other encumbrances on a vehicle

18 title other than a purchase money security interest,

19 and that the individual owed the arrearage may exe20 cute on, seize, and sell the property in accordance

21 with State law.’’.

22 SEC. 9. ATTACHMENT OF BANK ACCOUNTS.

23 Section 466(a) of the Social Security Act (42 U.S.C.

24 666(a)), as amended by sections 2(b) and 8 of this Act,

25 is amended by inserting after paragraph (13) the follow26 ing:
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1 ‘‘(14) Procedures under which—

2 ‘‘(A) amounts on deposit in a bank account

3 may be seized to satisfy child support arrear4 ages determined under a court order or an

5 order of an administrative process established

6 under State law, solely through an administra7 tive process, pending notice to and an expedited

8 opportunity to be heard from the account hold9 er or holders; and

10 ‘‘(B) if the account holder or holders fail

11 to successfully challenge the seizure (as deter12 mined under State law), the bank may be re13 quired to pay from the account to the entity

14 with the right to collect the arrearage the lesser

15 of—

16 ‘‘(i) the amount of the arrearage; or

17 ‘‘(ii) the amount on deposit in the ac18 count.’’.

19 SEC. 10. SEIZURE OF LOTTERY WINNINGS, SETTLEMENTS,

20 PAYOUTS, AWARDS, AND BEQUESTS, AND

21 SALE OF FORFEITED PROPERTY, TO PAY

22 CHILD SUPPORT ARREARAGES.

23 Section 466(a) of the Social Security Act (42 U.S.C.

24 666(a)), as amended by sections 2(b), 8, and 9 of this
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1 Act, is amended by inserting after paragraph (14) the fol2 lowing:

3 ‘‘(15) Procedures, in addition to other income

4 withholding procedures, under which a lien is im5 posed against property with the following effect:

6 ‘‘(A) The distributor of the winnings from

7 a State lottery or State-sanctioned or tribal8 sanctioned gambling house or casino shall—

9 ‘‘(i) suspend payment of the winnings

10 from the person otherwise entitled to the

11 payment until an inquiry is made to and a

12 response is received from the State child

13 support enforcement agency as to whether

14 the person owes a child support arrearage;

15 and

16 ‘‘(ii) if there is such an arrearage,

17 withhold from the payment the lesser of

18 the amount of the payment or the amount

19 of the arrearage, and pay the amount with20 held to the agency for distribution.

21 ‘‘(B) The person required to make a pay22 ment under a policy of insurance or a settle23 ment of a claim made with respect to the policy

24 shall—
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1 ‘‘(i) suspend the payment until an in2 quiry is made to and a response received

3 from the agency as to whether the person

4 otherwise entitled to the payment owes a

5 child support arrearage; and

6 ‘‘(ii) if there is such an arrearage,

7 withhold from the payment the lesser of

8 the amount of the payment or the amount

9 of the arrearage, and pay the amount with10 held to the agency for distribution.

11 ‘‘(C) The payor of any amount pursuant to

12 an award, judgment, or settlement in any ac13 tion brought in Federal or State court shall—

14 ‘‘(i) suspend the payment of the

15 amount until an inquiry is made to and a

16 response is received from the agency as to

17 whether the person otherwise entitled to

18 the payment owes a child support arrear19 age; and

20 ‘‘(ii) if there is such an arrearage,

21 withhold from the payment the lesser of

22 the amount of the payment or the amount

23 of the arrearage, and pay the amount with24 held to the agency for distribution.
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1 ‘‘(D) If the State seizes property forfeited

2 to the State by an individual by reason of a

3 criminal conviction, the State shall—

4 ‘‘(i) hold the property until an inquiry

5 is made to and a response is received from

6 the agency as to whether the individual

7 owes a child support arrearage; and

8 ‘‘(ii) if there is such an arrearage, sell

9 the property and, after satisfying the

10 claims of all other private or public claim11 ants to the property and deducting from

12 the proceeds of the sale the attendant costs

13 (such as for towing, storage, and the sale),

14 pay the lesser of the remaining proceeds or

15 the amount of the arrearage directly to the

16 agency for distribution.

17 ‘‘(E) Any person required to make a pay18 ment in respect of a decedent shall—

19 ‘‘(i) suspend the payment until an in20 quiry is made to and a response received

21 from the agency as to whether the person

22 otherwise entitled to the payment owes a

23 child support arrearage; and

24 ‘‘(ii) if there is such an arrearage,

25 withhold from the payment the lesser of
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1 the amount of the payment or the amount

2 of the arrearage, and pay the amount with3 held to the agency for distribution.’’.

4 SEC. 11. USE OF ADMINISTRATIVE PROCESS TO IMPOSE

5 LIENS AGAINST AND SEIZE PROPERTY OF

6 PERSONS DELINQUENT IN CHILD SUPPORT

7 PAYMENTS.

8 Section 466(a)(4) of the Social Security Act (42

9 U.S.C. 666(a)) is amended to read as follows:

10 ‘‘(4) Procedures under which administrative

11 processes are used to impose liens against and seize

12 property for amounts of overdue support owed by

13 noncustodial parents who reside or own property in

14 the State, in full compliance with all procedural due

15 process requirements of the State, and without the

16 need for a court order.’’.

17 SEC. 12. FRAUDULENT TRANSFER PURSUIT.

18 Section 466(a) of the Social Security Act (42 U.S.C.

19 666(a)), as amended by sections 2(b), 8, 9, and 10 of this

20 Act, is amended by inserting after paragraph (15) the fol21 lowing:

22 ‘‘(16) Procedures requiring that, in any case re23 lated to child support, any transfer of property by

24 an individual who owes a child support arrearage

25 shall be presumed to be made with the intent to
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1 avoid payment of the arrearage, and may be rebut2 ted by evidence to the contrary.’’.

3 SEC. 13. TECHNICAL CORRECTION TO ERISA DEFINITION

4 OF MEDICAL CHILD SUPPORT ORDER.

5 (a) IN GENERAL.—Section 609(a)(2)(B) of the Em6 ployee Retirement Income Security Act of 1974 (29

7 U.S.C. 1169(a)(2)(B)) is amended—

8 (1) by striking ‘‘issued by a court of competent

9 jurisdiction’’;

10 (2) by striking the period at the end of clause

11 (ii) and inserting a comma; and

12 (3) by adding, after and below clause (ii), the

13 following:

14 ‘‘if such judgment, decree, or order (I) is issued

15 by a court of competent jurisdiction or (II) is

16 issued by an administrative adjudicator and has

17 the force and effect of law under applicable

18 State law.’’.

19 (b) EFFECTIVE DATE.—

20 (1) IN GENERAL.—The amendments made by

21 this section shall take effect on the date of the en22 actment of this Act.

23 (2) PLAN AMENDMENTS NOT REQUIRED UNTIL

24 JANUARY 1, 1996.—Any amendment to a plan re25 quired to be made by an amendment made by this
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1 section shall not be required to be made before the

2 first plan year beginning on or after January 1,

3 1996, if—

4 (A) during the period after the date before

5 the date of the enactment of this Act and be6 fore such first plan year, the plan is operated

7 in accordance with the requirements of the

8 amendments made by this section, and

9 (B) such plan amendment applies retro10 actively to the period after the date before the

11 date of the enactment of this Act and before

12 such first plan year.

13 A plan shall not be treated as failing to be operated

14 in accordance with the provisions of the plan merely

15 because it operates in accordance with this para16 graph.

17 SEC. 14. INCLUSION IN CONSUMER CREDIT REPORTS OF IN18 FORMATION ON OVERDUE CHILD SUPPORT

19 OBLIGATIONS OF THE CONSUMER.

20 (a) CONSUMER REPORTING AGENCIES REQUIRED TO

21 INCLUDE IN CONSUMER CREDIT REPORTS INFORMATION

22 ON OVERDUE CHILD SUPPORT OBLIGATIONS OF THE

23 CONSUMER.—Section 604 of the Consumer Credit Protec24 tion Act (15 U.S.C. 1681b) is amended—
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1 (1) in the caption for such section, by adding

2 at the end the following: ‘‘; reporting of over3 due child support obligations’’;

4 (2) by inserting ‘‘(a)’’ before ‘‘A consumer’’;

5 and

6 (3) by adding at the end the following new sub7 section:

8 ‘‘(b) A consumer reporting agency shall include in

9 any consumer report information (if any) provided by a

10 State child support agency or verified by another govern11 ment entity on the failure of the consumer to pay overdue

12 support (as defined in section 466(e) of the Social Security

13 Act).’’.

14 (b) PROVISION TO CONSUMER REPORTING AGENCIES

15 OF INFORMATION ON OVERDUE CHILD SUPPORT OBLIGA16 TIONS OF ABSENT PARENTS.—Section 466(a)(7) of the

17 Social Security Act (42 U.S.C. 666(a)(7)) is amended—

18 (1) by striking ‘‘will’’ and inserting ‘‘shall’’;

19 (2) by striking ‘‘upon the request of such agen20 cy’’; and

21 (3) by striking ‘‘, and (C)’’ and all that follows

22 through ‘‘State’’.

23 (c) EFFECTIVE DATE.—The amendments made by

24 this section shall take effect on the 1st day of the 1st cal-
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1 endar quarter that begins on or after the date of the en2 actment of this Act.

3 SEC. 15. HOLD ON OCCUPATIONAL, PROFESSIONAL, AND

4 BUSINESS LICENSES.

5 (a) STATE HOLD BASED ON WARRANT OR SUPPORT

6 DELINQUENCY.—Section 466(a) of the Social Security

7 Act (42 U.S.C. 666(a)), as amended by sections 2(b), 8,

8 9, 10, and 12 of this Act, is amended by inserting after

9 paragraph (16) the following:

10 ‘‘(17) Procedures under which the State occu11 pational licensing and regulating departments and

12 agencies may not issue or renew any occupational,

13 professional, or business license of—

14 ‘‘(A) a noncustodial parent who is the sub15 ject of an outstanding failure to appear war16 rant, capias, or bench warrant related to a child

17 support proceeding that appears on the State’s

18 crime information system, until removed from

19 the system; and

20 ‘‘(B) an individual who is delinquent in the

21 payment of child support, until the obligee or a

22 State prosecutor responsible for child support

23 enforcement consents to, or a court that is re24 sponsible for the order’s enforcement orders,

25 the release of the hold on the license, or an ex-
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1 pedited inquiry and review is completed while

2 the individual is granted a 60-day temporary li3 cense.’’.

4 (b) FEDERAL HOLD BASED ON SUPPORT DELIN5 QUENCY.—A Federal agency may not issue or renew any

6 occupational, professional, or business license of an indi7 vidual who is delinquent in the payment of child support,

8 until the obligee, the obligee’s attorney or a State prosecu9 tor responsible for child support enforcement consents to,

10 or a court that is responsible for the order’s enforcement

11 orders, the release of the hold on the license, or an expe12 dited inquiry and review is completed while the individual

13 is granted a 60-day temporary license.

14 SEC. 16. DRIVER’S LICENSES AND VEHICLE REGISTRA15 TIONS DENIED TO PERSONS DELINQUENT IN

16 CHILD SUPPORT PAYMENTS OR FAILING TO

17 APPEAR IN CHILD SUPPORT CASES.

18 Section 466(a) of the Social Security Act (42 U.S.C.

19 666(a)), as amended by sections 2(b), 8, 9, 10, 12, and

20 15 of this Act, is amended by inserting after paragraph

21 (17) the following:

22 ‘‘(18) Procedures under which the State motor

23 vehicle department—
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1 ‘‘(A) may not issue or renew the driver’s li2 cense or any vehicle registration (other than

3 temporary) of any noncustodial parent who—

4 ‘‘(i) owes a child support payment

5 that is overdue by at least 6 months; or

6 ‘‘(ii) is the subject of an outstanding

7 failure to appear warrant, capias, or bench

8 warrant related to a child support proceed9 ing that appears on the State’s crime in10 formation system;

11 ‘‘(B) upon receiving notice that an individ12 ual to whom a State driver’s license or vehicle

13 registration has been issued owes a child sup14 port payment that is overdue by at least 6

15 months, or is the subject of a warrant related

16 to a child support proceeding, shall issue a

17 show cause order to the individual requesting

18 the individual to demonstrate why the individ19 ual’s driver’s license or vehicle registration

20 should not be suspended until child support

21 payment is made or the warrant is removed by

22 the State responsible for issuing the warrant, as

23 the case may be; and

24 ‘‘(C) in any case in which a show cause

25 order has been issued as described in subpara-
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1 graph (B), may grant a temporary license or

2 vehicle registration to the individual pending

3 the show cause hearing, or the payment of the

4 child support or removal of the warrant, as the

5 case may be, whichever occurs first.’’.

6 SEC. 17. SIMPLIFIED PROCESS FOR REVIEW AND ADJUST7 MENT OF CERTAIN CHILD SUPPORT ORDERS.

8 (a) IN GENERAL.—Section 466(a)(10) of the Social

9 Security Act (42 U.S.C. 666(a)(10)) is amended by add10 ing at the end the following:

11 ‘‘(D)(i) Procedures under which—

12 ‘‘(I) every 3 years, at the request of either

13 parent subject to a child support order, the

14 State shall review and, as appropriate, adjust

15 the order in accordance with the guidelines es16 tablished under section 467(a) if the amount of

17 the child support award under the order differs

18 from the amount that would be awarded in ac19 cordance with such guidelines by more than the

20 total of the adjustments required to be made in

21 the amount of the award pursuant to section

22 467A during the 3 year period ending on the

23 date of the request; and

24 ‘‘(II) upon request of either parent subject

25 to a child support order, the State shall review
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1 and, as appropriate, adjust the order in accord2 ance with the guidelines established under sec3 tion 467(a) based on a significant change in the

4 circumstances of either such parent.

5 ‘‘(ii) Such procedures shall require both parents

6 subject to a child support order to be notified of

7 their rights provided for under clause (i) at the time

8 the order is issued and in the annual information ex9 change form provided under subparagraph (E).

10 ‘‘(E) Procedures under which each child sup11 port order issued or modified in the State after the

12 effective date of this subparagraph shall require the

13 parents subject to the order to provide each other

14 with a complete statement of their respective finan15 cial condition annually on a form which shall be es16 tablished by the Secretary and provided by the

17 State.’’.

18 (b) CONFORMING AMENDMENT.—Section 466(a) of

19 such Act (42 U.S.C. 666(a)) is amended by striking para20 graph (10).

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