I

103D CONGRESS

2D SESSION H. R. 3892

To improve the child support system.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 24, 1994

Mr. ANDREWS of Texas introduced the following bill; which was referred jointly to the Committees on Ways and Means, the Judiciary, Education and

Labor, and Banking, Finance and Urban Affairs

A BILL

To improve the child support system.

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.

4 This Act may be cited as the ‘‘Child Support En5 hancement Act of 1994’’.

6 TITLE I—NATIONAL REGISTRY

7 OF CHILD SUPPORT ORDERS

8 SEC. 101. NATIONAL CHILD SUPPORT ORDER REGISTRY.

9 (a) ESTABLISHMENT.—

10 (1) IN GENERAL.—The Secretary of Health and

11 Human Services shall establish a national registry of
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1 all child support orders the information in which

2 shall be accessible in the form of a computerized

3 database.

4 (2) CHILD SUPPORT ORDER DEFINED.—As

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

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

7 or an administrative process established under State

8 law, that requires an individual to make payments

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

10 and the parent with whom the child is living.

11 (b) TRANSMISSION OF COPIES OF CHILD SUPPORT

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

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

14 by inserting after paragraph (11) the following:

15 ‘‘(12) Procedures to ensure that a copy of each

16 child support order issued or modified in the State

17 is transmitted to the national registry of child sup18 port orders established under section 2(a) of the

19 Child Support Enhancement Act of 1994.’’.

20 (c) PROVISION OF CHILD SUPPORT INFORMATION TO

21 EMPLOYERS.—Upon receipt from an employer of a

22 W–4 form completed by an employee, the national registry

23 shall—

24 (1) compare the child support information re25 ported on the W–4 form with the information in the
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1 national registry on the child support obligations of

2 the employee; and

3 (2) report to the employer such information as

4 the national registry may have as to—

5 (A) whether the employee is required to

6 make payments pursuant to a child support

7 order; and

8 (B) if so, the aggregate amount required

9 to be so paid (and to whom) by the employee

10 on a monthly basis.

11 TITLE II—ENFORCEMENT OF

12 CHILD SUPPORT ORDERS

13 THROUGH EMPLOYER WITH14 HOLDING

15 SEC. 201. REPORTING OF CHILD SUPPORT INFORMATION.

16 (a) W–4 REPORTING REQUIREMENT.—

17 (1) IN GENERAL.—The Secretary of the Treas18 ury, in consultation with the Secretary of Labor,

19 shall require all employees to file a new W–4 form

20 with their employers within 5 calendar days after

21 the later of the effective date of this subsection or

22 the date the employee is hired, and require all em23 ployers to provide a copy of every employee’s W–4

24 form to the national child support order registry es25 tablished under section 101(a) of this Act.
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1 (2) EXPANDED USE OF FORM.—The Secretary

2 of the Treasury shall modify the W–4 form to be

3 completed by an employee to enable the employee to

4 indicate on the form—

5 (A) whether the employee owes child sup6 port, and if so—

7 (i) to whom the support is payable

8 and the amount of the support payable;

9 and

10 (ii) whether the support is to be paid

11 through wage withholding; and

12 (B) whether health care insurance is avail13 able to the new employee, and, if so, whether

14 the employee has obtained such insurance for

15 the dependent children of the employee.

16 (b) EMPLOYER WITHHOLDING OBLIGATION.—

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

18 Revenue Code of 1986 (relating to employment

19 taxes) is amended by inserting after chapter 24 the

20 following new chapter:

21 ‘‘CHAPTER 24A—COLLECTION OF CHILD

22 SUPPORT OBLIGATIONS AT SOURCE

23 ON WAGES

‘‘Sec. 3411. Child support obligations collected at source.
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1 ‘‘SEC. 3411. CHILD SUPPORT OBLIGATIONS COLLECTED AT

2 SOURCE.

3 ‘‘(a) REQUIREMENT OF WITHHOLDING.—Every em4 ployer making payment of wages shall deduct and with5 hold upon such wages a specified child support obligation

6 amount.

7 ‘‘(b) SPECIFIED CHILD SUPPORT OBLIGATION

8 AMOUNT.—For purposes of this chapter, the specified

9 child support obligation amount with respect to any em10 ployee shall be determined based on—

11 ‘‘(1) information provided by the employee, or

12 ‘‘(2) if the national registry of child support or13 ders established under section 101 of the Child Sup14 port Enhancement Act of 1994 notifies the employer

15 that such information is inaccurate, information pro16 vided by the registry.

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

18 be liable for the payment of the specified child support

19 obligation amount to the person entitled to such amount,

20 as determined based on the information referred to in sub21 section (b).

22 ‘‘(d) SPECIAL RULES.—For purposes of this chapter

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

24 specified child support obligation amount shall be treated

25 as if it were a tax withheld under chapter 24 and rules

26 similar to the rules of such chapter shall apply.’’
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1 (2) CLERICAL AMENDMENT.—The table of

2 chapters of subtitle C of the Internal Revenue Code

3 of 1986 is amended by inserting after the item relat4 ing to chapter 24 the following new item:

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

5 (c) WITHHELD CHILD SUPPORT OBLIGATIONS RE6 PORTED ON W–2 FORMS.—Subsection (a) of section 6051

7 of the Internal Revenue Code of 1986 (relating to receipts

8 for employees) is amended by striking ‘‘and’’ at the end

9 of paragraph (8), by striking the period at the end of para10 graph (9) and inserting ‘‘, and’’, and by inserting after

11 paragraph (9) the following new paragraph:

12 ‘‘(10) the total amount of specified child sup13 port obligations withheld under section 3411.’’

14 TITLE III—ENFORCEMENT OF

15 CRIMINAL PENALTIES FOR

16 FLIGHT TO AVOID PAYMENT

17 OF CHILD SUPPORT

18 SEC. 301. ADDITIONAL AUTHORIZATION FOR ENFORCE19 MENT.

20 There are authorized to be appropriated to the Attor21 ney General for each of fiscal years 1994, 1995, 1996,

22 1997, and 1998 the amount of $50,000,000 for the en23 forcement of section 228 of title 18, United States Code.
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1 TITLE IV—CREDIT BUREAU

2 REPORTING

3 SEC. 401. REPORTS TO CREDIT BUREAUS ON PERSONS DE4 LINQUENT IN CHILD SUPPORT PAYMENTS.

5 (a) IN GENERAL.—Section 466(a)(7) of the Social

6 Security Act (42 U.S.C. 666(a)(7)) is amended to read

7 as follows:

8 ‘‘(7) Procedures requiring the State to provide

9 to each consumer reporting agency (as defined in

10 section 603(f) of the Fair Credit Reporting Act in11 formation regarding the amount of overdue support

12 owed by any absent parent who resides in the

13 State.’’.

14 (b) EFFECTIVE DATE.—The amendment made by

15 subsection (a) shall take effect on October 1, 1994.

16 TITLE V—NATIONAL

17 JURISDICTION

18 SEC. 501. FINDINGS AND PURPOSES.

19 (a) The Congress finds that—

20 (1) there are a large and growing number of

21 child support cases annually involving disputes be22 tween parents or alleged parents who reside in dif23 ferent States, the District of Columbia, the Com24 monwealth of Puerto Rico, the territories and pos25 sessions of the United States, and Indian country;
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1 (2) the laws by which the courts of these juris2 dictions determining their jurisdiction to adjudicate

3 parentage and establish child support orders are not

4 uniform;

5 (3) these nonuniform laws, along with the limits

6 imposed by a Federal system on the authority of

7 each jurisdiction to take certain actions outside its

8 own boundaries, contribute to the pressing problem

9 of parties moving to avoid jurisdiction, to inequities

10 based solely on choice of domicile, to a disregard of

11 court orders resulting in massive arrearages nation12 wide, to excessive relitigation of cases, to the estab13 lishment of conflicting orders by the courts of var14 ious jurisdictions, and to interstate travel and com15 munication that is so expensive and time consuming

16 as to disrupt parties’ occupations and commercial

17 activities;

18 (4) among the results of these conditions are

19 the failure of the courts of such jurisdictions to give

20 full faith and credit to the judicial proceedings of

21 the other jurisdictions, the deprivation of rights of

22 liberty and property without due process of law, bur23 dens of commerce among such jurisdictions, and

24 harm to the welfare of children and their parents

25 and other custodians;
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1 (5) the child’s best interests should play a deci2 sive role in the determination of jurisdiction in ac3 tions arising from domestic relations;

4 (6) it is in the child’s best interest to expand

5 the forums available in which a contestant can val6 idly assert personal jurisdiction over a nonresident

7 contestant in an action to adjudicate parentage or

8 make a child support order;

9 (7) a State has an interest in the financial sta10 bility of its children citizens;

11 (8) it is reasonably foreseeable for a parent or

12 presumed parent to be required to support his or her

13 child wherever that child is domiciled;

14 (9) if a parent fails to fulfill his or her support

15 obligations to a child, it is the State where the child

16 is domiciled that may incur public expenditures on

17 behalf of that child; and

18 (10) the domicile of a child to whom a support

19 obligation is owed or presumed to be owed is a suffi20 cient connection between a parent or presumed par21 ent and the child’s State to make it fair to require

22 the parent to defend the action in the child’s State

23 of domicile.

24 (b) For these reasons it is necessary to establish na25 tional standards under which the courts of such jurisdic-
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1 tions will determine their jurisdiction to adjudicate parent2 age and to establish a child support order and the effect

3 to be given by each jurisdiction to such decisions by the

4 courts of other jurisdictions.

5 (c) The purposes of this title are to—

6 (1) expand the forums available to adjudicate

7 parentage and to establish a child support order so

8 that such actions may be heard in the State which

9 has the strongest interest in the child’s financial se10 curity;

11 (2) promote and expand the exchange of infor12 mation and other forms of mutual assistance be13 tween States which are concerned with the same

14 child;

15 (3) facilitate the enforcement of support decrees

16 of sister States;

17 (4) discourage continuing interstate controver18 sies over child support in the interest of greater fi19 nancial stability and secure family relationships for

20 the child; and

21 (5) avoid jurisdictional competition and conflict

22 between State courts in matters of adjudication of

23 parentage and establishment of child support order

24 which have in the past resulted in the movement of

25 parties among the States and a low percentage of
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1 interstate cases with support orders, adversely af2 fecting children’s well-being.

3 SEC. 502. FULL FAITH AND CREDIT GIVEN TO CHILD SUP4 PORT ORDERS.

5 Chapter 115 of title 28, United States Code, is

6 amended by inserting after section 1738A the following:

7 ‘‘SEC. 1738B. FULL FAITH AND CREDIT GIVEN TO CHILD

8 SUPPORT ORDERS.

9 ‘‘(a) The appropriate authorities of every State shall

10 enforce according to its terms, and shall not modify except

11 as provided in subsection (f) of this section, any child sup12 port order made consistently with the provisions of this

13 section by a court of another State.

14 ‘‘(b) As used in this section, the term—

15 ‘‘(1) ‘child’ means any person under the age of

16 18; and includes an individual 18 or more years of

17 age for whom a child support order can be made

18 under the rendering State’s law;

19 ‘‘(2) ‘child’s State’ means the State in which

20 the child is currently domiciled with a parent, or a

21 person acting as a parent;

22 ‘‘(3) ‘child support order’ means a judgment,

23 decree or order of a court requiring the payment of

24 money, whether in periodic amounts or lump sum,

25 for the support of a child and includes permanent
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1 and temporary orders, initial orders and modifica2 tions, ongoing support and arrearages;

3 ‘‘(4) ‘contestant’ means a person, including a

4 parent, who claims a right to receive child support

5 or is under an order to pay child support. ‘Contest6 ant’ includes States and political subdivisions to

7 whom support rights have been assigned;

8 ‘‘(5) ‘court’ means a court, administrative proc9 ess or quasijudicial process of a State which is au10 thorized to adjudicate parentage, establish the

11 amount of support payable by a contestant, or mod12 ify the amount of support payable by a contestant;

13 ‘‘(6) ‘domicile’ means physical residence accom14 panied by an intent to indefinitely remain there;

15 ‘‘(7) ‘home State’ means a State in which, im16 mediately preceding the time involved, the child lived

17 with his parents, a parent, or a person acting as

18 parent, for at least 6 consecutive months, and in the

19 case of a child less than 6 months old, the State in

20 which the child lived from birth with any of such

21 persons. Periods of temporary absence of any of

22 such persons are counted as part of the 6-month or

23 other period;

24 ‘‘(8) ‘modification’ and ‘modify’ refer to a child

25 support order which modifies, replaces, supersedes,
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1 or otherwise is made subsequent to, a prior child

2 support order concerning the same child, whether

3 made by the same court or not;

4 ‘‘(9) ‘person acting as a parent’ means a child,

5 other than a parent, who has physical custody of a

6 child and who has either been awarded custody by

7 a court or claims a right to custody; and

8 ‘‘(10) ‘State’ means a State of the United

9 States, the District of Columbia, the Commonwealth

10 of Puerto Rico, a territory or possession of the Unit11 ed States, or an Indian tribe.

12 ‘‘(c) A child support order made by a court of a State

13 is consistent with the provisions of this section only if such

14 court had personal jurisdiction of the contestants. A court

15 has personal jurisdiction over a nonresident contestant if

16 one or more of the following factors are met—

17 ‘‘(1) the individual is personally served with a

18 citation, summons, or notice in the State;

19 ‘‘(2) the individual submits to the jurisdiction

20 of the State by consent, by entering a general ap21 pearance, or by filing a responsive document having

22 the effect of waiving any contest to personal jurisdic23 tion;

24 ‘‘(3) the individual resided with the child in the

25 State;
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1 ‘‘(4) the individual resided in the State and

2 provided prenatal expenses or support for the child;

3 ‘‘(5) the child resides in the State as a result

4 of the acts or directives of the individual;

5 ‘‘(6) the individual engaged in sexual inter6 course in the State and the child may have been con7 ceived by that act of intercourse;

8 ‘‘(7) the individual asserted parentage in the

9 putative father registry maintained in the State by

10 the appropriate agency; or

11 ‘‘(8) there is any other basis consistent with the

12 constitutions of the State and the United States for

13 the exercise of personal jurisdiction.

14 ‘‘(d) A court of a State which has made a child sup15 port order consistently with the provisions of this section

16 has continuing, exclusive jurisdiction for so long as such

17 State remains the child’s State or the residence of any

18 contestant.

19 ‘‘(e) Before a child support order is made, reasonable

20 notice and opportunity to be heard shall be given to the

21 contestants.

22 ‘‘(f) A court of a State may modify a child support

23 order for the same child made by a court of another State,

24 if—
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1 ‘‘(1) it has jurisdiction to make such a child

2 support order; and

3 ‘‘(2) the court of the other State no longer has

4 continuing, exclusive jurisdiction because such State

5 no longer is the child’s State or the residence of any

6 contestant, or each individual party has filed written

7 consent for the State to modify the order and as8 sume continuing exclusive jurisdiction.

9 ‘‘(g) A court of a State shall not exercise jurisdiction

10 in any proceeding for a child support order commenced

11 during the pendency of a proceeding in a court of another

12 State where such court of that other State is exercising

13 jurisdiction consistently with the provisions of this section

14 to make a child support order unless—

15 ‘‘(1) the proceeding in the State is filed before

16 the expiration of the time allowed in the other State

17 for filing a responsive pleading challenging the exer18 cise of jurisdiction by the other State;

19 ‘‘(2) the contesting party timely challenges the

20 exercise of jurisdiction in the other State; and

21 ‘‘(3) if applicable, the State is the home State

22 of the child.’’.

23 SEC. 503. REQUIRED STATE LONG ARM JURISDICTION.

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

25 666(a)), as amended by sections 101(b) and 201(b) of this
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1 Act, is amended by inserting after paragraph (13) the fol2 lowing:

3 ‘‘(14) Effective January 1, 1994, procedures

4 under which the State may validly assert personal

5 jurisdiction over a nonresident contestant for pur6 poses of adjudicating parentage and/or establishing

7 a child support order if one or more of the following

8 factors are met—

9 ‘‘(A) the individual is personally served

10 with a citation, summons, or notice in the

11 State;

12 ‘‘(B) the individual submits to the jurisdic13 tion of the State by consent, by entering a gen14 eral appearance, or by filing a responsive docu15 ment having the effect of waiving any contest to

16 personal jurisdiction;

17 ‘‘(C) the individual resided with the child

18 in the State;

19 ‘‘(D) the individual resided in the State

20 and provided prenatal expenses or support for

21 the child;

22 ‘‘(E) the child resides in the State as a re23 sult of the acts or directives of the individual;
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1 ‘‘(F) the individual engaged in sexual

2 intercourse in the State and the child may have

3 been conceived by that act of intercourse;

4 ‘‘(G) the individual asserted parentage in

5 the putative father registry maintained in the

6 State by the appropriate agency; or

7 ‘‘(H) there is any other basis consistent

8 with the constitutions of the State and the

9 United States for the exercise of personal juris10 diction.’’.

11 SEC. 504. DUE PROCESS.

12 Based on the findings set forth in section 501, Con13 gress pursuant to its powers to enforce the Due Process

14 Clause of the Fifth Amendment, Section 5 of the Four15 teenth Amendment, the Commerce Clause, the General

16 Welfare Clause, and the Full Faith and Credit Clause de17 clares that due process is satisfied when a child’s State

18 of domicile asserts personal jurisdiction over a nonresident

19 contestant who is the parent or presumed parent as de20 fined by that State’s law of that child in an action to adju21 dicate parentage or establish a child support order.

22 SEC. 505. DURATION OF CHILD SUPPORT.

23 (a) Subject to subsections (b) and (c), one or both

24 parents may be ordered to pay child support for a child,

25 until the later of the following occurs:
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1 (1) the child reaches the age of 18 and is no

2 longer enrolled as a student in an accredited second3 ary school or its vocational or private equivalent; or

4 (2) the child, enrolled at the time of reaching

5 the age of 18 as a student working toward fulfilling

6 requirements to receive a high school diploma or its

7 vocational or private equivalent, subsequently—

8 (A) graduates; or

9 (B) reaches the maximum age permitted

10 under State law for enrollment in public sec11 ondary education in that State.

12 (b)(1) A child support duty may be extended to cover

13 any of the following occurrences:

14 (A) A child’s disability, if the child becomes dis15 abled during the period he or she would qualify for

16 support under subsection (a), for the period for

17 which the child suffers a mental, physical, or emo18 tional impairment that is so severe as to make im19 probable the ability of the child to live financially

20 independently on a long-term basis, whether institu21 tionalized or not, for as long as the impairment in22 hibits financial independence; an action under this

23 paragraph may be brought only by a natural or

24 adoptive parent of the child, or by the child or his

25 or her guardian ad litem, entitlement to which can-
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1 not be assigned to any person or government agency,

2 except to the State child support agency as defined

3 under section 452 of title IV–D of the Social Secu4 rity Act.

5 (B) A child’s enrollment in an accredited post6 secondary educational or vocational school, college,

7 or institute if the child has not attained the age of

8 22; for the purpose of this section, a child is and

9 continues to be an enrolled student during all regu10 larly scheduled or approved school breaks including

11 summer recess; the trier of fact shall decide whether

12 any intervals in attendance between secondary and

13 postsecondary education and any intervals between

14 enrollments in postsecondary educational or voca15 tional schools, college, or institutes require the con16 tinuation of the obligation of providing support dur17 ing those intervals.

18 (C) If a written, voluntary agreement, executed

19 by the parents of the child or oral, voluntary con20 firmed by both parents of a child, extends the duty

21 until the child reaches a certain age or until a speci22 fied event occurs.

23 (2) Child support ordered under this subsection may

24 follow the State’s guidelines for determining support or

25 may deviate without need of special justification if the
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1 order states the reasoning behind the amount set and the

2 calculations therefor.

3 (c) The duty to provide current child support termi4 nates for a child at the time any one of the following

5 events occurs:

6 (1) The child dies.

7 (2) The child marries.

8 (3) The child’s parent who has a support duty

9 has his or her parental rights terminated regarding

10 that child; if another person has a duty to support

11 the child, the other person’s support duty is not ex12 tinguished.

13 (4) The child is emancipated by court order.

14 (5) The child enlists in the armed forces and

15 reports for active duty.

16 (d) A child support duty shall continue after the

17 death or permanent, total disability of one or both parents

18 who owe a support duty until conditions under subsection

19 (a), (b), or (c) are met, with said support having priority

20 payment and distribution status above that belonging to

21 all other non-Federal creditors.

22 (e) Notwithstanding the provisions of subsection (a),

23 (b), (c), or (d), termination of a child support duty does

24 not relieve the obligor of liability for past-due support.
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1 (f) Notwithstanding any other provision in this sec2 tion, a child in foster care is entitled to parental support

3 for as long as Federal and State law permit.

4 (g) A child born out-of-wedlock whose parentage has

5 been determined under law is entitled to the same dura6 tion of support as a child born to a marriage.

7 (h) A child or his or her guardian ad litem has a

8 right to bring an action under this section as does either

9 one of the child’s parents or the State child support agen10 cy as defined in section 452 of title IV–D of the Social

11 Security Act.

12 (i) Nothing prohibits a State from enacting duration

13 of support laws that provide a longer duration of support

14 than that which this section provides.

15 TITLE VI—ADMINISTRATIVE

16 PROCESS

17 SEC. 601. ADMINISTRATIVE PROCESS.

18 Section 466(a)(2) of the Social Security Act (42

19 U.S.C. 666(a)(2)) is amended to read as follows:

20 ‘‘(2) Procedures under which expedited admin21 istrative processes are used to establish paternity in

22 contested paternity cases and to establish and en23 force support orders in all cases.’’.
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1 TITLE VII—MEDICAL CHILD SUP2 PORT ORDERS ISSUED BY AD3 MINISTRATIVE ADJUDICA4 TORS

5 SEC. 701. TECHNICAL CORRECTION TO ERISA DEFINITION

6 OF MEDICAL CHILD SUPPORT ORDER.

7 (a) IN GENERAL.—Section 609(a)(2)(B) of the Em8 ployee Retirement Income Security Act of 1974 (29

9 U.S.C. 1169(a)(2)(B)) is amended—

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

11 jurisdiction’’;

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

13 (ii) and inserting a comma; and

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

15 following:

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

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

18 issued by an administrative adjudicator and has

19 the force and effect of law under applicable

20 State law.’’.

21 (b) EFFECTIVE DATE.—

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

23 this section shall take effect on the date of the en24 actment of this Act.
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1 (2) PLAN AMENDMENTS NOT REQUIRED UNTIL

2 JANUARY 1, 1995.—Any amendment to a plan re3 quired to be made by an amendment made by this

4 section shall not be required to be made before the

5 first plan year beginning on or after January 1,

6 1995, if—

7 (A) during the period after the date before

8 the date of the enactment of this Act and be9 fore such first plan year, the plan is operated

10 in accordance with the requirements of the

11 amendments made by this section, and

12 (B) such plan amendment applies retro13 actively to the period after the date before the

14 date of the enactment of this Act and before

15 such first plan year.

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

17 in accordance with the provisions of the plan merely

18 because it operates in accordance with this para19 graph.
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1 TITLE VIII—ELIMINATION OF

2 OPERATING SUBSIDIES FOR

3 VACANT PUBLIC HOUSING

4 SEC. 801. ELIMINATION OF OPERATING SUBSIDIES FOR VA5 CANT PUBLIC HOUSING.

6 (a) IN GENERAL.—Section 9(a)(3)(B) of the United

7 States Housing Act of 1937 (42 U.S.C. 1437g(a)(3)(B))

8 is amended—

9 (1) in clause (iv), by striking ‘‘and’’ at the end;

10 (2) in clause (v), by striking the period at the

11 end and inserting ‘‘; and’’; and

12 (3) by adding at the end the following new

13 clause:

14 ‘‘(vi) no payment may be provided under this

15 section for any dwelling unit that has been vacant

16 for a period of 180 days or more unless such unit

17 is vacant because of comprehensive modernization,

18 major reconstruction, demolition, or disposition ac19 tivities that have been funded or approved.’’.

20 (b) ELIMINATION OF ANNUAL CONTRIBUTION RE21 SERVE.—Section 14(p) of the United States Housing Act

22 of 1937 (42 U.S.C. 1437l(p)) is amended by striking para23 graph (3).

24 (c) RECAPTURE OF ANNUAL CONTRIBUTION RE25 SERVE.—The Secretary of Housing and Urban Develop-
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1 ment shall recapture any amounts reserved from annual

2 contributions for public housing agencies and deposited in

3 accounts established on behalf of the agencies pursuant

4 to paragraph (3) of section 14(p) of the United States

5 Housing Act of 1937 (as in effect immediately before the

6 date of the enactment of this Act).

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