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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 915 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 915

              To improve the collection of child support.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           February 16, 1993

   Mrs. Schroeder introduced the following bill; which was referred 
     jointly to the Committees on Ways and Means and the Judiciary

_______________________________________________________________________

                                 A BILL

 
              To improve the collection of child support.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Child Support Economic Security Act 
of 1993''.

             TITLE I--CHILD SUPPORT ENFORCEMENT AMENDMENTS

SEC. 101. UNIFORM STATEWIDE CHILD SUPPORT ENFORCEMENT PROGRAM.

    Section 454(3) of the Social Security Act (42 U.S.C. 654(3)) is 
amended by striking ``, which meets'' and all that follows and 
inserting ``at the State level to administer the plan under rules that 
apply uniformly throughout the State;''.

SEC. 102. ACCESS OF STATE CHILD SUPPORT ENFORCEMENT AGENCY TO 
              INFORMATION IN STATE DATA BASES.

    Section 466(a) of the Social Security Act (42 U.S.C. 666(a)) is 
amended by inserting after paragraph (10) the following:
            ``(11) Procedures which ensure that the agency 
        administering the plan under section 454 has on-line access to 
        all information contained in any data base maintained by the 
        State or any political subdivision of the State.''.

SEC. 103. CHILD SUPPORT PAYMENTS REQUIRED UNTIL CERTAIN EVENT OCCURS.

    Section 466(a) of the Social Security Act (42 U.S.C. 666(a)), as 
amended by section 102 of this Act, is amended by inserting after 
paragraph (11) the following:
            ``(12)(A) Procedures which ensure that any court order, or 
        order of an administrative process established under State law, 
        for support or maintenance of a child, requires the payment of 
        such support until the child--
                    ``(i) if not disabled--
                            ``(I) attains the age of 18 years;
                            ``(II) is graduated from secondary school 
                        or its equivalent, or, having been enrolled at 
                        such a school or equivalent, is no longer so 
                        enrolled at any such school or equivalent;
                            ``(III) marries; or
                            ``(IV) is emancipated by a court of 
                        competent jurisdiction; or
                    ``(ii) if disabled--
                            ``(I) marries; or
                            ``(II) is able to support himself or 
                        herself.
            ``(B) For purposes of subparagraph (A), the term `disabled' 
        means having a severe, chronic disability which--
                    ``(i) is attributable to a mental or physical 
                impairment, or combination of mental and physical 
                impairments;
                    ``(ii) is likely to continue indefinitely;
                    ``(iii) results in substantial functional 
                limitations in 3 or more of the following areas of 
                major life activity:
                            ``(I) self-care;
                            ``(II) receptive and expressive language;
                            ``(III) learning;
                            ``(IV) mobility;
                            ``(V) capacity for independent living;
                            ``(VI) economic self-sufficiency; and
                    ``(iv) reflects the need for a combination of 
                special, interdisciplinary, or generic care, treatment, 
                or other services that are of lifelong or extended 
                duration.''.

SEC. 104. REQUIREMENT THAT ALL INCOME BE SUBJECT TO WITHHOLDING TO MEET 
              CHILD SUPPORT OBLIGATIONS.

    Section 466(a) of the Social Security Act (42 U.S.C. 666(a)), as 
amended by the preceding provisions of this Act, is amended by 
inserting after paragraph (12) the following:
            ``(13)(A) Procedures which ensure that all income of an 
        individual (other than benefits received through a Federal, 
        State, or local program under which entitlement to benefits is 
        based on the means of the beneficiary) is subject to 
        withholding to meet the child support obligations of the 
        individual.
            ``(B) Procedures which require the agency responsible for 
        the operation of any State lottery (in this subparagraph 
        referred to as the `lottery agency')--
                    ``(i) to inquire of the agency administering the 
                plan under section 454 whether any person to whom the 
                lottery agency is to directly pay lottery winnings owes 
                overdue support;
                    ``(ii) to defer payment of the winnings until the 
                lottery agency receives a response to the inquiry; and
                    ``(iii) if the person owes overdue support, to 
                withhold from the payment of the winnings the amount of 
                the overdue support.
            ``(C) Procedures which require any insurer subject to 
        regulation by the State--
                    ``(i) to inquire of the agency administering the 
                plan under section 454 whether any person claiming 
                benefits under a policy of insurance issued by the 
                insurer owes overdue support;
                    ``(ii) to defer payment of such benefits until the 
                insurer receives a response to the inquiry; and
                    ``(iii) if the person owes overdue support--
                            ``(I) to withhold from such benefits the 
                        amount of the overdue support; and
                            ``(II) to provide to the agency the amount 
                        withheld for payment to the individual owed the 
                        support.
            ``(D) Procedures which prevent a State court from entering 
        an order awarding the payment of money to any person, or 
        accepting an agreement settling an action brought in the court 
        that requires money to be paid to any person, until--
                    ``(i) the court has inquired of the agency 
                administering the plan under section 454 whether the 
                person owes overdue support, and has received a 
                response to the inquiry; and
                    ``(ii) if the person owes overdue support, the 
                person pays the amount of the overdue support.
            ``(E) Procedures which prevent any agency of State or local 
        government from recording a property transaction, until--
                    ``(i) the agency has inquired of the agency 
                administering the plan under section 454 whether any 
                party to the transaction owes overdue support, and has 
                received a response to the inquiry; and
                    ``(ii) any such party--
                            ``(I) pays the amount of any overdue 
                        support; or
                            ``(II) demonstrates that the party has made 
                        a good faith effort--
                                    ``(aa) to pay the support due for 
                                the month in which the transaction is 
                                sought to be recorded; and
                                    ``(bb) to provide for the payment 
                                of the overdue support through regular, 
                                periodic payments.''.

SEC. 105. STATE LICENSES DENIED TO PARENTS WITH PAST DUE CHILD SUPPORT 
              OBLIGATIONS.

    Section 466(a) of the Social Security Act (42 U.S.C. 666(a)), as 
amended by the preceding provisions of this Act, is amended by 
inserting after paragraph (13) the following:
            ``(14) Procedures which prohibit the provision, renewal, or 
        reissuance of any license, required under the law of the State 
        or of any political subdivision thereof before engaging in 
        conduct subject to the license, to any person the amount of 
        whose overdue support exceeds $1,000, until the person 
        demonstrates that the person has made a good faith effort--
                    ``(A) to pay the support due for the month in which 
                the license was requested to be provided, renewed, or 
                reissued; and
                    ``(B) to provide for the payment of the overdue 
                support through regular, periodic payments.''.

SEC. 106. CERTAIN OVERDUE CHILD SUPPORT OBLIGATIONS REQUIRED TO BE 
              REPORTED TO CONSUMER CREDIT REPORTING AGENCIES.

    Section 466(a)(7) of the Social Security Act (42 U.S.C. 666(a)(7)) 
is amended to read as follows:
            ``(7) Procedures which ensure that the agency administering 
        the plan under section 454--
                    ``(A) reports to the major consumer reporting 
                agencies (as defined in section 603(f) of the Fair 
                Credit Reporting Act) the amount of overdue support 
                owed by an individual residing in the State if the 
                amount of the delinquency exceeds the amount of child 
                support payable by the individual on a monthly basis; 
                and
                    ``(B) upon request of a consumer reporting agency, 
                furnishes the consumer reporting agency information on 
                the amount of overdue support owed by an individual 
                residing in the State, for a fee equal to not more than 
                the cost of furnishing the information;''.

SEC. 107. ELIMINATION OF STATUTES OF LIMITATIONS IN CHILD SUPPORT 
              CASES.

    Section 466(a) of the Social Security Act (42 U.S.C. 666(a)), as 
amended by the preceding provisions of this Act, is amended by 
inserting after paragraph (14) the following:
            ``(15) Procedures which ensure that there is no limit to 
        the period in which any court order, or order of an 
        administrative process established under State law, for support 
        or maintenance of a child, may be enforced.''.

SEC. 108. REQUIREMENT THAT SOCIAL SECURITY NUMBERS APPEAR ON MARRIAGE 
              LICENSES AND CHILD SUPPORT ORDERS.

    Section 466(a) of the Social Security Act (42 U.S.C. 666(a)), as 
amended by the preceding provisions of this Act, is amended by 
inserting after paragraph (15) the following:
            ``(16) Procedures which ensure that, on each marriage 
        license issued by the State, and in each court order, or order 
        of an administrative process established under State law, for 
        support or maintenance of a child, there appear the social 
        security account numbers of each individual to whom the license 
        is issued or upon whom the order imposes a support 
        obligation.''.

SEC. 109. SEPARATE TREATMENT OF CASES ALLEGING NONSUPPORT AND CASES 
              ALLEGING DENIAL OF VISITATION RIGHTS.

    Section 466(a) of the Social Security Act (42 U.S.C. 666(a)), as 
amended by the preceding provisions of this Act, is amended by 
inserting after paragraph (16) the following:
            ``(17) Procedures which ensure that--
                    ``(A) conduct affecting the exercise of visitation 
                rights under a court order, or an order of an 
                administrative process established under State law, for 
                support or maintenance of a child, shall be treated as 
                irrelevant in any action brought to enforce the support 
                provisions of the order; and
                    ``(B) the provision of, or failure to provide, 
                support pursuant to such an order shall be treated as 
                irrelevant in any action brought to enforce visitation 
                rights under the order.''.

SEC. 110. TIMELY RESPONSE TO INTERSTATE LOCATE REQUESTS.

    Section 452(a) of the Social Security Act (42 U.S.C. 652(a)) is 
amended--
            (1) by striking ``and'' at the end of paragraph (9);
            (2) by striking the period at the end of paragraph (10) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(11) in establishing standards under paragraph (1) for 
        locating absent parents--
                    ``(A) not later than 1 year after the date of the 
                enactment of this paragraph, prescribe deadlines by 
                which States must respond to requests from other States 
                for information, taking into account the state of 
                available technology; and
                    ``(B) review and, if appropriate, revise such 
                deadlines every 3 years taking into account the state 
                of available technology.''.

SEC. 111. REGULATIONS FOR PROCESSING OF INTERSTATE CHILD SUPPORT CASES.

    Section 452 of the Social Security Act (42 U.S.C. 652) is amended 
by adding at the end the following:
    ``(j) The Secretary shall issue regulations establishing standards 
and procedures governing the processing by States of cases involving 
the enforcement of child support obligations against parents in other 
States, including a deadline by which prosecutions must commence after 
the case first comes to the attention of the State, and a deadline by 
which such actions must be decided or dismissed.''.

SEC. 112. FINANCIAL INCENTIVES.

    (a) Only Child Support Enforcement Funds Subject to Reduction for 
Substantial Noncompliance.--
            (1) In general.--Subsection (h) of section 403 of such Act 
        (42 U.S.C. 603(h)) is hereby transferred to section 455 of such 
        Act, redesignated as subsection (f) of such section 455, and 
        amended--
                    (A) in paragraph (1)--
                            (i) by striking ``Act'' and inserting 
                        ``part'';
                            (ii) by striking ``part D'' and inserting 
                        ``this part''; and
                            (iii) by striking ``such part'' and 
                        inserting ``this part''; and
                    (B) in paragraph (3), by striking ``this part'' and 
                inserting ``part A''.
            (2) Conforming amendments.--
                    (A) Section 452(a)(4) of such Act (42 U.S.C. 
                652(a)(4)) is amended by striking ``403(h)'' each place 
                such term appears and inserting ``455(f)''.
                    (B) Subsections (d)(3)(A), (g)(1), and (g)(3)(A) of 
                section 452 of such Act (42 U.S.C. 652) are each 
                amended by striking ``403(h)'' and inserting 
                ``455(f)''.
    (b) Payments to States Increased.--
            (1) In general.--Section 455(a) of such Act (42 U.S.C. 
        655(a)) is amended--
                    (A) in paragraph (1)--
                            (i) by striking ``(a)(1)'' and inserting 
                        ``(a)''; and
                            (ii) in subparagraph (A), by striking ``the 
                        percent specified in paragraph (2)'' and 
                        inserting ``90 percent''; and
                            (iii) in each of subparagraphs (B) and (C), 
                        by striking ``(rather than the percentage 
                        specified in subparagraph (A))'';
                    (B) by striking paragraph (2); and
                    (C) by redesignating subparagraphs (A), (B), and 
                (C) of paragraph (1) as paragraphs (1), (2), and (3), 
                respectively.
            (2) Conforming amendments.--Paragraphs (1)(B), (2)(A), and 
        (2)(B) of section 452(d) of such Act (42 U.S.C. 652(d)) are 
        each amended by striking ``455(a)(1)(B)'' and inserting 
        ``455(a)(2)''.
    (c) Repeal of Incentive Payments to States.--Section 458 of such 
Act (42 U.S.C. 658) is hereby repealed.

SEC. 113. DEADLINE FOR ADOPTION OF UNIFORM INTERSTATE FAMILY SUPPORT 
              ACT.

    Part D of title IV of the Social Security Act (42 U.S.C. 651-669) 
is amended by adding at the end the following:

``SEC. 469A. ADOPTION OF UNIFORM INTERSTATE FAMILY SUPPORT ACT.

    ``As a condition for the approval of any State plan under this 
part, the State must, not later than the effective date of this 
section, have in effect a law identical to the Uniform Interstate 
Family Support Act, in the form most recently adopted by the National 
Conference of Commissioners on Uniform State Laws before the enactment 
of this section.''.

SEC. 114. COMMISSION ON CHILD SUPPORT GUIDELINES.

    (a) Establishment.--There is hereby established a commission to be 
known as the Commission on Child Support Guidelines (in this section 
referred to as the ``Commission'').
    (b) Applicable Rules.--Subsection (b) (except the first sentence of 
paragraph (4) thereof), and subsections (c), (e), (f)(2), and (g), of 
section 126 of the Family Support Act (42 U.S.C. 666 note; Public Law 
100-485) shall apply to the Commission in the same manner as such 
provisions apply to the Commission on Interstate Child Support.
    (c) Qualifications.--Each person with authority to make 
appointments to the Commission shall exercise the authority to ensure 
that the Commission includes--
            (1) persons with judicial or administrative experience in 
        matters involving child support enforcement; and
            (2) representatives of organizations which represent 
        custodial and noncustodial parents.
    (d) Duty.--Not later than 18 months after the last of the initial 
appointments to the Commission is made, the Commission shall submit to 
the Congress a report containing recommendations for national 
guidelines for child support award amounts, after consideration of the 
guidelines established by each State pursuant to section 467(a) of the 
Social Security Act.
    (e) Termination.--The Commission shall terminate 2 months after the 
date of submission of the report required by subsection (d).
    (f) Effective Date.--This section shall take effect on the date of 
the enactment of this Act.

SEC. 115. EFFECTIVE DATE.

    Except as otherwise provided in this title (or in the amendments 
made by this title), the amendments made by this title shall take 
effect on the 1st day of the 12th calendar quarter beginning after the 
date of the enactment of this Act.

TITLE II--BANKRUPTCY AMENDMENTS RELATING TO CHILD SUPPORT, ALIMONY, AND 
                     PROPERTY SETTLEMENT AGREEMENTS

SEC. 201. EXCEPTIONS TO STAY.

    Section 362(b)(2) of title 11, United States Code, is amended to 
read as follows:
            ``(2) under subsection (a) of this section--
                    ``(A) of the commencement or continuation of an 
                action or proceeding for--
                            ``(i) the establishment of paternity; or
                            ``(ii) the establishment or modification of 
                        an order for alimony, maintenance, or support; 
                        or
                    ``(B) of the collection of--
                            ``(i) alimony, maintenance, or support from 
                        property that is not property of the estate; or
                            ``(ii) a debt of the kind specified in 
                        section 523(a)(5) of this title to a child of 
                        the debtor if the claim for such debt arises 
                        after the commencement of the case;''.

SEC. 202. PRIORITY.

    Section 507(a) of title 11, United States Code, is amended--
            (1) in paragraph (8) by striking ``(8) Eighth'' and 
        inserting ``(9) Ninth'',
            (2) in paragraph (7) by striking ``(7) Seventh'' and 
        inserting ``(8) Eighth'', and
            (3) by inserting after paragraph (6) the following:
            ``(7) Seventh, allowed claims of the kind specified in 
        section 523(a)(5) of this title.''.

SEC. 203. EXEMPTIONS.

    Section 522(f) of title 11, United States Code, is amended--
            (1) in paragraph (2)(C) by striking the period at the end 
        and inserting a semicolon, and
            (2) by adding at the end the following:
``and does not secure a claim for a debt of a kind specified in section 
523(a)(5) of this title.''.

SEC. 204. EXCEPTION TO DISCHARGE.

    Section 523(a)(5) of title 11, United States Code, is amended to 
read as follows:
            ``(5) to a spouse, former spouse, or child of the debtor--
                    ``(A) for alimony to, maintenance for, or support 
                of such spouse or child, in connection with a 
                separation agreement, divorce decree or other order of 
                a court of record, determination made in accordance 
                with State or territorial law by a governmental unit, 
                or property settlement agreement, but not the extent 
                that such debt includes a liability designated as 
                alimony, maintenance, or support, unless such liability 
                is actually in the nature of alimony, maintenance, or 
                support; or
                    ``(B) for any liability under the terms of a 
                property settlement agreement entered into in 
                connection with a separation agreement or divorce 
                decree;
        except to the extent such debt is assigned to another entity, 
        voluntarily, by operation of law, or otherwise (other than 
        debts assigned pursuant to section 402(a)(26) of the Social 
        Security Act, or any such debt which has been assigned to the 
        Federal Government or to a State or any political subdivision 
        of such State).''.

SEC. 205. PREFERENCES.

            Section 547(c) of title 11, United States Code, is 
        amended--
                    (1) in paragraph (6) by striking ``or'' at the end,
                    (2) by redesignating paragraph (7) as paragraph 
                (8), and
                    (3) by inserting after paragraph (6) the following:
            ``(7) to the extent such transfer was a bona fide payment 
        of a debt of a kind specified in section 523(a)(5) of this 
        title; or''.

SEC. 206. PROPERTY OF THE ESTATE.

    (a) Property Under Chapter 12.--Paragraphs (1) and (2) of section 
1207(a) of title 11, United States Code, are amended by striking 
``but'' and all that follows through ``first'', and inserting the 
following:
        ``until the plan is confirmed, except that such property as is 
        necessary to fund the plan and is specified in the plan or 
        order confirming the plan shall remain property of the 
        estate''.
    (b) Property Under Chapter 13.--Paragraphs (1) and (2) of section 
1306(a) of title 11, United States Code, are amended by striking 
``but'' and all that follows through ``first'', and inserting the 
following:
        ``until the plan is confirmed, except that such property as is 
        necessary to fund the plan and is specified in the plan or 
        order confirming the plan shall remain property of the 
        estate''.

SEC. 207. CONFIRMATION OF PLAN.

    (a) Confirmation Under Chapter 12.--Section 1225(a) of title 11, 
United States Code, is amended--
            (1) in paragraph (5) by striking ``and'' at the end,
            (2) by redesignating paragraph (6) as paragraph (7), and
            (3) by inserting after paragraph (5) the following:
            ``(6) the debtor has paid all allowable claims arising 
        after the order for relief for debts of the kinds specified in 
        section 523(a)(5) of this title; and''.
    (b) Confirmation Under Chapter 13.--Section 1325(a) of title 11, 
United States Code, is amended--
            (1) in paragraph (5)(C) by striking ``and'' at the end,
            (2) by redesignating paragraph (6) as paragraph (7), and
            (3) by inserting after paragraph (5) the following:
            ``(6) the debtor has paid all allowable claims arising 
        after the order for relief for debts of the kinds specified in 
        section 523(a)(5) of this title; and''.

SEC. 208. EXEMPTION.

    Representatives of child support creditors shall be permitted to 
appear and intervene without charge, and without meeting any special 
local court rule requirement for attorney appearances, in any 
bankruptcy proceeding in any bankruptcy court or district court of the 
United States if such representatives file a form in such court that 
contains information detailing the child support debt, its status, and 
other characteristics.

SEC. 209. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

    (a) Effective Date.--Except as provided in subsection (b), this 
title and the amendments made by this title shall take effect on the 
date of the enactment of this Act.
    (b) Application of Amendments.--The amendments made by this title 
shall not apply with respect to cases commenced under title 11 of the 
United States Code before the date of the enactment of this Act.

                                 <all>

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