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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5225 Introduced in House (IH)]

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.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Child Support 
Responsibility Act of 1994''.
    (b) Table of Contents.--The table of contents of 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.
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.

SEC. 2. NATIONAL CHILD SUPPORT ORDER REGISTRY.

    (a) Establishment.--
            (1) In general.--The Secretary of the Treasury shall 
        establish in the Internal Revenue Service a national registry 
        of all child support orders.
            (2) Child support order defined.--As used in this section, 
        the term ``child support order'' means an order, issued or 
        modified by a State court or an administrative process 
        established under State law, that requires an individual to 
        make payments for support and maintenance of a child or of a 
        child and the parent with whom the child is living.
    (b) Transmission of Copies of Child Support Orders to the National 
Registry.--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 to ensure that--
                    ``(A) each child support order issued or modified 
                in the State contains the social security account 
                number of each parent with rights or obligations under 
                the order;
                    ``(B) within 5 days after the issuance or 
                modification of a child support order in the State, a 
                copy of the order is transmitted to the national child 
                support order registry established under section 2(a) 
                of the Child Support Responsibility Act of 1994;
                    ``(C) within 2 years after the date of the 
                enactment of this paragraph, a copy of each child 
                support order being enforced by the State pursuant to 
                this part which has not been transmitted pursuant to 
                subparagraph (B) is transmitted to the national child 
                support order registry;
                    ``(D) within 5 years after the date of the 
                enactment of this paragraph, a copy of each child 
                support issued or modified in the State which has not 
                been transmitted pursuant to subparagraph (B) or (C) 
                and which a party to the order has requested be sent to 
                the national child support order registry be 
                transmitted to the registry; and
                    ``(E) with each order transmitted pursuant to 
                subparagraph (B), (C), or (D)--
                            ``(i) a notice is included as to the date 
                        the order is required or scheduled to be 
                        reviewed by a court or an administrative 
                        process established under State law; and
                            ``(ii) a certified statement of arrears (if 
                        any) owed under the order is included if a 
                        party to the order is receiving services under 
                        the State plan.''.
    (c) Maintenance of Abstracts of Child Support Orders.--The national 
registry shall maintain an abstract of each child support order, which 
shall contain the following information:
            (1) The names, addresses, and social security account 
        numbers of each individual with rights or obligations under the 
        order, to the extent that the authority that issued the order 
        has not prohibited the release of such information.
            (2) The name and date of birth of any child with respect to 
        whom payments are to be made under the order.
            (3) The dollar amount of child support required to be paid 
        on a monthly basis under the order.
            (4) The date the order was issued or most recently 
        modified, and each date the order is required or scheduled to 
        be reviewed by a court or an administrative process established 
        under State law.
            (5) Any orders superseded by the order.
            (6) Such other information as the Secretary of the 
        Treasury, in consultation with the Secretary of Health and 
        Human Services, shall, by regulation require.
    (d) Provision of Child Support Information to Employers.--Upon 
receipt from an employer of a W-4 form completed pursuant to section 
4(b) of this Act by an employee of the employer, the national registry 
shall report to the employer such information as the national registry 
may have as to--
            (1) whether the employee has a legal obligation to provide 
        child support (as defined in section 462(b) of the Social 
        Security Act) which is to be collected, in whole or in part, 
        through wage withholding pursuant to an order issued by a State 
        court or an order of an administrative process established 
        under State law; and
            (2) the aggregate amount of all such obligations.
    (e) Law Enforcement Assistance.--
            (1) Information access.--For the sole purpose of locating a 
        parent to establish a child support order or a parent who owes 
        a child support arrearage, each child support enforcement 
        agency shall--
                    (A) have access to the National Law Enforcement 
                Telecommunications Network and to the National Criminal 
                Information Center; and
                    (B) receive an access code number, referred to as 
                an ORI number.
            (2) Grant reduction for failure to report.--A State that 
        fails to report warrants issued in child support cases to the 
        designated State law enforcement agencies on the first day of 
        each fiscal year succeeding the first fiscal year beginning 
        after September 30, 1995, shall receive a 10 percent reduction 
        of funds received under the Omnibus Crime Control and Safe 
        Streets Act of 1968.

SEC. 3. INCREASED FEDERAL FINANCIAL PARTICIPATION FOR STATES WITH 
              UNIFIED CHILD SUPPORT ENFORCEMENT PROGRAMS.

    Section 455(a)(2) of the Social Security Act (42 U.S.C. 655(a)(2)) 
is amended--
            (1) by inserting ``(A)'' after ``(2)'';
            (2) by redesignating subparagraphs (A), (B), and (C) as 
        clauses (i), (ii), and (iii), respectively; and
            (3) by adding after and below the end the following:
    ``(B) The percent described in this paragraph for a State for a 
quarter in a fiscal year shall be the percent specified in subparagraph 
(A) for the fiscal year increased by 5 percentage points if the 
following apply to the State child support enforcement program:
            ``(i) All authority, accountability, and responsibility for 
        the program is centered at the State level in a unified State 
        agency.
            ``(ii) The program is administered by a single agency, and 
        policymaking for the program is centralized.
            ``(iii) There is statewide uniformity of case-processing 
        procedures and forms.
            ``(iv) There is a uniform hearing and appeal process.
            ``(v) All financing decisions are made at the State level.
            ``(vi) All non-Federal funding is appropriated at the State 
        level.
            ``(vii) All personnel and contracting decision making is 
        made by the State agency, and all personnel are employees of 
        the State agency, except that the Secretary may by regulation 
        establish exceptions with respect to not more than 10 percent 
        of personnel.''.

SEC. 4. MODIFICATION OF W-4 REPORTING REQUIREMENTS TO PROVIDE FOR 
              REPORTING OF CHILD SUPPORT OBLIGATIONS OF EMPLOYEES.

    (a) Establishment of Reporting System.--The Secretary of the 
Treasury, in consultation with the Secretary of Labor, shall establish 
a system for the reporting of information relating to child support 
obligations of employees that meets the requirements of this section.
    (b) Employee Obligations.--Under the system, each employee shall be 
required to file with the employer of the employee, within 5 days after 
the later of the effective date of this section or the date the 
employee is hired, a W-4 form that indicates--
            (1) whether the employee has a legal obligation to provide 
        child support (as defined in section 462(b) of the Social 
        Security Act) which is to be collected, in whole or in part, 
        through wage withholding pursuant to an order issued by a State 
        court or an order of an administrative process established 
        under State law; and
            (2) if so--
                    (A) the aggregate amount of all such obligations; 
                and
                    (B) the name and address of any person to whom the 
                employee has such an obligation.
    (c) Employer Obligations.--
            (1) In general.--Subtitle C of the Internal Revenue Code of 
        1986 (relating to employment taxes) is amended by inserting 
        after chapter 24 the following new chapter:

  ``CHAPTER 24A--COLLECTION OF CHILD SUPPORT OBLIGATIONS AT SOURCE ON 
                                 WAGES

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

``SEC. 3411. CHILD SUPPORT OBLIGATIONS COLLECTED AT SOURCE.

    ``(a) Requirement of Withholding.--
            ``(1) Wage withholding as indicated by the employee.--Each 
        employer who receives a completed W-4 form from an employee 
        pursuant to section 4(b) of the Child Support Responsibility 
        Act of 1994 which indicates that the employee has a legal 
        obligation to provide child support (as defined in section 
        462(b) of the Social Security Act) shall--
                    ``(A) deduct and withhold from the wages of the 
                employee the amount indicated on the W-4 form as a 
                child support obligation;
                    ``(B) send such amount to Secretary; and
                    ``(C) forward the form to the national child 
                support order registry.
            ``(2) Correction of withholding instructions.--If the 
        national child support order registry notifies the employer 
        that an employee has an obligation referred to in paragraph 
        (1), the employer shall--
                    ``(A) deduct and withhold from the wages of the 
                employee the greater of--
                            ``(i) the amount indicated on the W-4 form 
                        as a child support obligation; or
                            ``(ii) the amount that such registry 
                        indicates is to be deducted and withheld from 
                        the wages of the employee to satisfy such 
                        obligation; and
                    ``(B) send the amount so withheld to the Secretary.
    ``(b) Certain Obligations Exempt.--This section shall not apply to 
a child support obligation if the order requiring payment of such 
obligation specifies that such obligation is exempt from the 
requirements of this section.
    ``(c) Liability for Payment.--The employer shall be liable for the 
payment of amounts deducted and withheld under subsection (a) to the 
Secretary.
    ``(d) National Child Support Order Registry.--For purposes of this 
section, the term `national child support order registry' means the 
national registry of all child support orders established under section 
2 of the Child Support Responsibility Act of 1994.
    ``(e) Special Rules.--For purposes of this chapter (and so much of 
subtitle F as relates to this chapter), any amount required to be 
deducted and withheld under this section shall be treated as if it were 
a tax withheld under chapter 24 and rules similar to the rules of 
chapter 24 shall apply.''
            (2) Clerical amendment.--The table of chapters for subtitle 
        C of such Code is amended by inserting after the item relating 
        to chapter 24 the following new item:

                              ``Chapter 24A. Child support obligations 
                                        collected at source.''

SEC. 5. COLLECTION OF CHILD SUPPORT.

    (a) In General.--Chapter 77 of the Internal Revenue Code of 1986 
(relating to miscellaneous provisions) is amended by adding at the end 
thereof the following new section:

``SEC. 7524. COLLECTION OF CHILD SUPPORT.

    ``(a) Monthly Payments By Individuals With No or Insufficient Wage 
Withholding for Child Support.--
            ``(1) In general.--Each individual who has a child support 
        payment shortfall for any month shall pay an amount equal to 
        such shortfall to the Secretary not later than the close of 
        such month or such earlier date specified by the Secretary.
            ``(2) Child support payment shortfall.--For purposes of 
        this subsection, the term `child support payment shortfall' 
        means, with respect to any month, an amount equal to the excess 
        (if any) of--
                    ``(A) the amount of the applicable child support 
                obligation for such month, over
                    ``(B) the amount (if any) deducted and withheld 
                under section 3411 from the wages paid to such 
                individual during such month.
            ``(3) Certain obligations exempt.--This subsection shall 
        not apply to a child support obligation if the order requiring 
        payment of such obligation specifies that such obligation is 
        exempt from the requirements of this subsection.
    ``(b) Payments of Arrearages By Individuals No Longer Exempt From 
Withholding or Monthly Payments.--
            ``(1) In general.--If--
                    ``(A) for any month ending with or within the 
                taxable year, a child support obligation was exempt 
                from section 3111 and subsection (a) of this section,
                    ``(B) such obligation ceases to be so exempt during 
                such year, and
                    ``(C) such individual failed to pay the full amount 
                of such obligation for any month ending with or within 
                such year for which such obligation was so exempt,
        then such individual shall pay (not later than the date 
        specified by the Secretary) an amount equal to the excess of 
        the full amount of such obligation for the months referred to 
        in subparagraph (A) over the amount paid before such date under 
        such obligation for such months.
            ``(2) Determination of amount required to be paid.--
        Subsection (d) shall apply to an amount required to be paid 
        under this subsection only after the Secretary's determination 
        of such amount (after a hearing on the record) becomes final.
    ``(c) Reconciliation of Child Support Obligation and Payments on 
Income Tax Return.--
            ``(1) In general.--Each applicable child support obligation 
        of any individual for months ending with or within any taxable 
        year shall be paid--
                    ``(A) not later than the last date (determined 
                without regard to extensions) prescribed for filing the 
                individual's return of tax imposed by chapter 1 for 
                such taxable year, and
                    ``(B)(i) if such return is filed not later than 
                such date, with such return, or
                    ``(ii) in any case not described in clause (i), in 
                such manner as the Secretary may by regulations 
                prescribe.
            ``(2) Offset for withheld child support, etc.--There shall 
        be allowed as a credit against the amount required to be paid 
        under paragraph (1) by an individual the sum of--
                    ``(A) the amount (if any) deducted and withheld 
                under section 3411 from the wages received by such 
                individual during the taxable year,
                    ``(B) the amount (if any) paid by such individual 
                under section 6654 by reason of subsection (f)(3) 
                thereof for such taxable year,
                    ``(C) the amount (if any) paid by such individual 
                under subsections (a) and (b) for such taxable year, 
                and
                    ``(D) in the case of an obligation which was exempt 
                from the requirements of section 3411 and subsection 
                (a) of this section for only a portion of the taxable 
                year, the amount paid (for such portion of the taxable 
                year) by such individual directly to the person to whom 
                the obligation is owed (or, if such person has assigned 
                to a State the right to collect the obligation, the 
                State).
            ``(3) Credit or refund for payments in excess of actual 
        obligation.--There shall be allowed as a credit against the tax 
        imposed by subtitle A for the taxable year an amount equal to 
        the excess (if any) of--
                    ``(A) the aggregate of the amounts described in 
                subparagraphs (A), (B), (C), and (D) of paragraph (2) 
                for such taxable year, over
                    ``(B) the aggregate of the applicable child support 
                obligations of the taxpayer for such taxable year.
        The credit allowed by this paragraph shall be treated for 
        purposes of this title as allowed by subpart C of part IV of 
        subchapter A of chapter 1.
    ``(d) Failure To Pay Amount Owing.--If an individual fails to pay 
the full amount required to be paid under subsection (a), (b), or (c) 
on or before due date for such payment, the Secretary shall 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 the collection of which would be jeopardized by delay.
    ``(e) Application of Section to Child Support Orders Not Initially 
Subject to Section.--
            ``(1) In general.--In the case of a child support 
        obligation which becomes an applicable child support obligation 
        for any month after January 1996, the amount required to be 
        paid under subsection (a) for the first such month shall be 
        increased by the excess (if any) of--
                    ``(A) the aggregate amount required to be paid 
                under such obligation for all months before such month 
                (including months in prior taxable years), over
                    ``(B) the aggregate amount paid under such 
                obligation for all months before such month.
            ``(2) Cross reference.--

                                ``For agreements to pay tax in 
installments, see section 6159.
    ``(f) Applicable Child Support Obligation.--For purposes of this 
section, the term `applicable child support obligation' means a legal 
obligation to provide child support (as defined in section 462(b) of 
the Social Security Act), except that such term shall not include any 
such obligation for any period during which section 466(a)(12) of the 
Social Security Act (42 U.S.C. 666(a)(12)) does not apply to the child 
support order with respect thereto until the order is registered.''
    (b) Withheld Child Support To Be Shown on W-2.--Subsection (a) of 
section 6051 of such Code is amended by striking ``and'' at the end of 
paragraph (8), by striking the period at the end of paragraph (9) and 
inserting ``, and'', and by inserting after paragraph (9) the following 
new paragraph:
            ``(10) the total amount deducted and withheld as a child 
        support obligation under section 3411.''
    (c) Application of Estimated Tax Penalty.--
            (1) Subsection (f) of section 6654 of such Code (relating 
        to failure by individual to pay estimated income tax) is 
        amended by striking ``minus'' at the end of paragraph (2) and 
        inserting ``plus'', by redesignating paragraph (3) as paragraph 
        (4), and by inserting after paragraph (2) the following new 
        paragraph:
            ``(3) the aggregate applicable child support obligation (as 
        defined in section 7524(a)) of the taxpayer for months ending 
        with or within the taxable year, minus''.
            (2) Paragraph (1) of section 6654(d) of such Code is 
        amended by adding at the end the following new subparagraph:
                    ``(D) Determination of required annual payment for 
                taxpayers required to pay child support.--In the case 
                of a taxpayer who is required under section 7524 to pay 
                an applicable child support obligation (as defined in 
                section 7524) for any month ending with or within the 
                taxable year, the required annual payment shall be the 
                sum of--
                            ``(i) the amount determined under 
                        subparagraph (B) without regard to subsection 
                        (f)(3), plus
                            ``(ii) the aggregate amount of such 
                        obligation for all months ending with or within 
                        the taxable year.''
            (3) Credit for withheld amounts, etc.--Subsection (g) of 
        section 6654 of such Code is amended by adding at the end the 
        following new paragraph:
            ``(3) Child support.--For purposes of applying this 
        section, the sum of--
                    ``(A) amounts deducted and withheld under section 
                3411, and
                    ``(B) amounts paid under subsections (a) and (b) of 
                section 7524,
        shall be deemed to be a payment of the amount described in 
        subsection (f)(3) on the date such amounts were actually 
        withheld or paid, as the case may be.''
    (d) Clerical Amendment.--The table of sections for chapter 77 of 
such Code is amended by adding at the end thereof the following new 
item:

                              ``Sec. 7524. Collection of child 
                                        support.''

SEC. 6. DISTRIBUTION OF PORTION OF CHILD SUPPORT COLLECTED.

    (a) In General.--The Secretary of the Treasury shall pay to the 
appropriate payee the sum of the following amounts which are received 
by the Secretary on account of a child support obligation payable to 
such payee:
            (1) The amounts deducted and withheld under section 3411 of 
        the Internal Revenue Code of 1986.
            (2) The amounts paid under section 6654 of such Code 
        (relating to estimated tax payments) by reason of subsection 
        (f)(3) thereof.
            (3) The amounts paid under section 7524 of such Code 
        (relating to collection of child support).
    (b) Appropriate Payee.--As used in this section, the term 
``appropriate payee'' means, with respect to a child support 
obligation--
            (1) the person to whom the obligation is owed; or
            (2) if such person has assigned to a State the right to 
        collect the obligation, the State.
    (c) Interest Payable on Late Payments By Secretary.--If, within 10 
days after the Secretary of the Treasury receives an amount referred to 
in a paragraph of subsection (a), the Secretary fails to pay any 
corresponding amount required to be paid under subsection (a), the 
Secretary shall pay, in addition to the amount required to be paid, to 
the appropriate payee interest at the underpayment rate (determined 
under section 6621 of such Code, and compounded daily) on such amount 
for the period beginning on such date and ending on the date paid.
    (d) Coordination With Rules Governing Distribution of Child Support 
Collected by a State.--Section 457 of the Social Security Act (42 
U.S.C. 657) is amended by adding at the end the following:
    ``(e) For purposes of this section, amounts received by a State 
from the Secretary of the Treasury pursuant to section 6(a) of the 
Child Support Responsibility Act of 1994 shall be considered amounts 
collected by the State as child support pursuant to a plan approved 
under this part.''.

SEC. 7. WORKERS' COMPENSATION BENEFITS SUBJECT TO GARNISHMENT.

    Section 462(f) of the Social Security Act (42 U.S.C. 662(f)) is 
amended--
            (1) by striking ``or'' at the end of paragraph (1);
            (2) by striking the period at the end of paragraph (2) and 
        inserting ``, or''; and
            (3) by adding at the end the following:
            ``(3) workers' compensation benefits.''.

SEC. 8. LIENS ON CERTIFICATES OF VEHICLE TITLE.

    Section 466(a) (42 U.S.C. 666(a)), as amended by section 2(b) of 
this Act, is amended by inserting after paragraph (12) the following:
            ``(13) Procedures under which the State shall 
        systematically place liens on vehicle titles for child support 
        arrearages determined under a court order or an order of an 
        administrative process established under State law, using a 
        method for updating the value of the lien on a regular basis or 
        allowing for an expedited inquiry to and response from a 
        governmental payee for proof of the amount of arrears, with an 
        expedited method for the titleholder or the individual owing 
        the arrearage to contest the arrearage or to request a release 
        upon fulfilling the support obligation, and under which such a 
        lien has precedence over all other encumbrances on a vehicle 
        title other than a purchase money security interest, and that 
        the individual owed the arrearage may execute on, seize, and 
        sell the property in accordance with State law.''.

SEC. 9. ATTACHMENT OF BANK ACCOUNTS.

    Section 466(a) of the Social Security Act (42 U.S.C. 666(a)), as 
amended by sections 2(b) and 8 of this Act, is amended by inserting 
after paragraph (13) the following:
            ``(14) Procedures under which--
                    ``(A) amounts on deposit in a bank account may be 
                seized to satisfy child support arrearages determined 
                under a court order or an order of an administrative 
                process established under State law, solely through an 
                administrative process, pending notice to and an 
                expedited opportunity to be heard from the account 
                holder or holders; and
                    ``(B) if the account holder or holders fail to 
                successfully challenge the seizure (as determined under 
                State law), the bank may be required to pay from the 
                account to the entity with the right to collect the 
                arrearage the lesser of--
                            ``(i) the amount of the arrearage; or
                            ``(ii) the amount on deposit in the 
                        account.''.

SEC. 10. SEIZURE OF LOTTERY WINNINGS, SETTLEMENTS, PAYOUTS, AWARDS, AND 
              BEQUESTS, AND SALE OF FORFEITED PROPERTY, TO PAY CHILD 
              SUPPORT ARREARAGES.

    Section 466(a) of the Social Security Act (42 U.S.C. 666(a)), as 
amended by sections 2(b), 8, and 9 of this Act, is amended by inserting 
after paragraph (14) the following:
            ``(15) Procedures, in addition to other income withholding 
        procedures, under which a lien is imposed against property with 
        the following effect:
                    ``(A) The distributor of the winnings from a State 
                lottery or State-sanctioned or tribal-sanctioned 
                gambling house or casino shall--
                            ``(i) suspend payment of the winnings from 
                        the person otherwise entitled to the payment 
                        until an inquiry is made to and a response is 
                        received from the State child support 
                        enforcement agency as to whether the person 
                        owes a child support arrearage; and
                            ``(ii) if there is such an arrearage, 
                        withhold from the payment the lesser of the 
                        amount of the payment or the amount of the 
                        arrearage, and pay the amount withheld to the 
                        agency for distribution.
                    ``(B) The person required to make a payment under a 
                policy of insurance or a settlement of a claim made 
                with respect to the policy shall--
                            ``(i) suspend the payment until an inquiry 
                        is made to and a response received from the 
                        agency as to whether the person otherwise 
                        entitled to the payment owes a child support 
                        arrearage; and
                            ``(ii) if there is such an arrearage, 
                        withhold from the payment the lesser of the 
                        amount of the payment or the amount of the 
                        arrearage, and pay the amount withheld to the 
                        agency for distribution.
                    ``(C) The payor of any amount pursuant to an award, 
                judgment, or settlement in any action brought in 
                Federal or State court shall--
                            ``(i) suspend the payment of the amount 
                        until an inquiry is made to and a response is 
                        received from the agency as to whether the 
                        person otherwise entitled to the payment owes a 
                        child support arrearage; and
                            ``(ii) if there is such an arrearage, 
                        withhold from the payment the lesser of the 
                        amount of the payment or the amount of the 
                        arrearage, and pay the amount withheld to the 
                        agency for distribution.
                    ``(D) If the State seizes property forfeited to the 
                State by an individual by reason of a criminal 
                conviction, the State shall--
                            ``(i) hold the property until an inquiry is 
                        made to and a response is received from the 
                        agency as to whether the individual owes a 
                        child support arrearage; and
                            ``(ii) if there is such an arrearage, sell 
                        the property and, after satisfying the claims 
                        of all other private or public claimants to the 
                        property and deducting from the proceeds of the 
                        sale the attendant costs (such as for towing, 
                        storage, and the sale), pay the lesser of the 
                        remaining proceeds or the amount of the 
                        arrearage directly to the agency for 
                        distribution.
                    ``(E) Any person required to make a payment in 
                respect of a decedent shall--
                            ``(i) suspend the payment until an inquiry 
                        is made to and a response received from the 
                        agency as to whether the person otherwise 
                        entitled to the payment owes a child support 
                        arrearage; and
                            ``(ii) if there is such an arrearage, 
                        withhold from the payment the lesser of the 
                        amount of the payment or the amount of the 
                        arrearage, and pay the amount withheld to the 
                        agency for distribution.''.

SEC. 11. USE OF ADMINISTRATIVE PROCESS TO IMPOSE LIENS AGAINST AND 
              SEIZE PROPERTY OF PERSONS DELINQUENT IN CHILD SUPPORT 
              PAYMENTS.

    Section 466(a)(4) of the Social Security Act (42 U.S.C. 666(a)) is 
amended to read as follows:
            ``(4) Procedures under which administrative processes are 
        used to impose liens against and seize property for amounts of 
        overdue support owed by noncustodial parents who reside or own 
        property in the State, in full compliance with all procedural 
        due process requirements of the State, and without the need for 
        a court order.''.

SEC. 12. FRAUDULENT TRANSFER PURSUIT.

    Section 466(a) of the Social Security Act (42 U.S.C. 666(a)), as 
amended by sections 2(b), 8, 9, and 10 of this Act, is amended by 
inserting after paragraph (15) the following:
            ``(16) 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. 13. TECHNICAL CORRECTION TO ERISA DEFINITION OF MEDICAL CHILD 
              SUPPORT ORDER.

    (a) In General.--Section 609(a)(2)(B) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1169(a)(2)(B)) is amended--
            (1) by striking ``issued by a court of competent 
        jurisdiction'';
            (2) by striking the period at the end of clause (ii) and 
        inserting a comma; and
            (3) by adding, after and below clause (ii), the following:
                ``if such judgment, decree, or order (I) is issued by a 
                court of competent jurisdiction or (II) is issued by an 
                administrative adjudicator and has the force and effect 
                of law under applicable State law.''.
    (b) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        take effect on the date of the enactment of this Act.
            (2) Plan amendments not required until january 1, 1996.--
        Any amendment to a plan required to be made by an amendment 
        made by this section shall not be required to be made before 
        the first plan year beginning on or after January 1, 1996, if--
                    (A) during the period after the date before the 
                date of the enactment of this Act and before such first 
                plan year, the plan is operated in accordance with the 
                requirements of the amendments made by this section, 
                and
                    (B) such plan amendment applies retroactively to 
                the period after the date before the date of the 
                enactment of this Act and before such first plan year.
        A plan shall not be treated as failing to be operated in 
        accordance with the provisions of the plan merely because it 
        operates in accordance with this paragraph.

SEC. 14. INCLUSION IN CONSUMER CREDIT REPORTS OF INFORMATION ON OVERDUE 
              CHILD SUPPORT OBLIGATIONS OF THE CONSUMER.

    (a) Consumer Reporting Agencies Required To Include in Consumer 
Credit Reports Information on Overdue Child Support Obligations of the 
Consumer.--Section 604 of the Consumer Credit Protection Act (15 U.S.C. 
1681b) is amended--
            (1) in the caption for such section, by adding at the end 
        the following: ``; reporting of overdue child support 
        obligations'';
            (2) by inserting ``(a)'' before ``A consumer''; and
            (3) by adding at the end the following new subsection:
    ``(b) A consumer reporting agency shall include in any consumer 
report information (if any) provided by a State child support agency or 
verified by another government entity on the failure of the consumer to 
pay overdue support (as defined in section 466(e) of the Social 
Security Act).''.
    (b) Provision to Consumer Reporting Agencies of Information on 
Overdue Child Support Obligations of Absent Parents.--Section 466(a)(7) 
of the Social Security Act (42 U.S.C. 666(a)(7)) is amended--
            (1) by striking ``will'' and inserting ``shall'';
            (2) by striking ``upon the request of such agency''; and
            (3) by striking ``, and (C)'' and all that follows through 
        ``State''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the 1st day of the 1st calendar quarter that begins on or 
after the date of the enactment of this Act.

SEC. 15. 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)), as amended by 
sections 2(b), 8, 9, 10, and 12 of this Act, is amended by inserting 
after paragraph (16) the following:
            ``(17) 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.''.
    (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.

SEC. 16. DRIVER'S LICENSES AND VEHICLE REGISTRATIONS DENIED TO PERSONS 
              DELINQUENT IN CHILD SUPPORT PAYMENTS OR FAILING TO APPEAR 
              IN CHILD SUPPORT CASES.

    Section 466(a) of the Social Security Act (42 U.S.C. 666(a)), as 
amended by sections 2(b), 8, 9, 10, 12, and 15 of this Act, is amended 
by inserting after paragraph (17) the following:
            ``(18) Procedures under which the State motor vehicle 
        department--
                    ``(A) may not issue or renew the driver's license 
                or any vehicle registration (other than temporary) of 
                any noncustodial parent who--
                            ``(i) owes a child support payment that is 
                        overdue by at least 6 months; or
                            ``(ii) 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;
                    ``(B) upon receiving notice that an individual to 
                whom a State driver's license or vehicle registration 
                has been issued owes a child support payment that is 
                overdue by at least 6 months, or is the subject of a 
                warrant related to a child support proceeding, shall 
                issue a show cause order to the individual requesting 
                the individual to demonstrate why the individual's 
                driver's license or vehicle registration should not be 
                suspended until child support payment is made or the 
                warrant is removed by the State responsible for issuing 
                the warrant, as the case may be; and
                    ``(C) in any case in which a show cause order has 
                been issued as described in subparagraph (B), may grant 
                a temporary license or vehicle registration to the 
                individual pending the show cause hearing, or the 
                payment of the child support or removal of the warrant, 
                as the case may be, whichever occurs first.''.

SEC. 17. SIMPLIFIED PROCESS FOR REVIEW AND ADJUSTMENT OF CERTAIN CHILD 
              SUPPORT ORDERS.

    (a) In General.--Section 466(a)(10) of the Social Security Act (42 
U.S.C. 666(a)(10)) is amended by adding at the end the following:
            ``(D)(i) Procedures under which--
                    ``(I) every 3 years, at the request of either 
                parent subject to a child support order, the State 
                shall review and, as appropriate, adjust the order in 
                accordance with the guidelines established under 
                section 467(a) if the amount of the child support award 
                under the order differs from the amount that would be 
                awarded in accordance with such guidelines by more than 
                the total of the adjustments required to be made in the 
                amount of the award pursuant to section 467A during the 
                3 year period ending on the date of the request; and
                    ``(II) upon request of either parent subject to a 
                child support order, the State shall review and, as 
                appropriate, adjust the order in accordance with the 
                guidelines established under section 467(a) based on a 
                significant change in the circumstances of either such 
                parent.
            ``(ii) Such procedures shall require both parents subject 
        to a child support order to be notified of their rights 
        provided for under clause (i) at the time the order is issued 
        and in the annual information exchange form provided under 
        subparagraph (E).
            ``(E) Procedures under which each child support order 
        issued or modified in the State after the effective date of 
        this subparagraph shall require the parents subject to the 
        order to provide each other with a complete statement of their 
        respective financial condition annually on a form which shall 
        be established by the Secretary and provided by the State.''.
    (b) Conforming Amendment.--Section 466(a) of such Act (42 U.S.C. 
666(a)) is amended by striking paragraph (10).
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