I 

109TH CONGRESS 

1ST SESSION H. R. 1755 

To amend the Social Security Act to require that anticipated child support 

be held in trust on the sale or refinancing of certain real property 

of an obligated parent. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 21, 2005 

Mr. ANDREWS introduced the following bill; which was referred to the 

Committee on Ways and Means 

A BILL 

To amend the Social Security Act to require that anticipated 

child support be held in trust on the sale or refinancing 

of certain real property of an obligated parent. 

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 Reserve 

5 Trust Act’’ . 

6 SEC. 2. STATE OBLIGATION TO PROVIDE CHILD SUPPORT 

7 RESERVE TRUST SYSTEM. 

8 Section 454 of the Social Security Act (42 U.S.C. 

9 654) is amended— 
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1 (1) in paragraph (32) by striking ‘‘and’’ at the 

2 end; 

3 (2) in paragraph (33) by striking the period at 

4 the end and inserting ‘‘; and’’; and 

5 (3) by inserting after paragraph (33) the fol6 lowing new paragraph: 

7 ‘‘(34) provide that, on and after January 1, 

8 2006, the State agency will have in effect a State re9 serve trust system that meets the requirements of 

10 section 454C.’’. 

11 SEC. 3. REQUIREMENTS OF CHILD SUPPORT RESERVE 

12 TRUST SYSTEM. 

13 The Social Security Act is amended by inserting after 

14 section 454B (42 U.S.C. 654b) the following new section: 

15 ‘‘SEC. 454C. RESERVE TRUST SYSTEM. 

16 ‘‘(a) IN GENERAL.—In order for a State to meet the 

17 requirements of this section, the State must— 

18 ‘‘(1) have in effect laws requiring the use of the 

19 procedures described in subsection (b); and 

20 ‘‘(2) establish and operate a unit (which shall 

21 be known as the State reserve trust unit) that has 

22 authority to carry out, and shall carry out, such laws 

23 and procedures. 
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1 ‘‘(b) REQUIRED PROCEDURES.—The procedures de2 scribed in this subsection are procedures to carry out the 

3 following: 

4 ‘‘(1) WITHHOLDING OF ANTICIPATED FUTURE

5 CHILD SUPPORT.—On any sale or refinancing by a 

6 person of any real property in the State against 

7 which a lien for amounts of overdue support owed by 

8 the person has ever arisen, without regard to wheth9 er such lien has ever been extinguished, the State re10 serve trust unit shall— 

11 ‘‘(A) withhold the net proceeds of the per12 son from the sale or refinancing; 

13 ‘‘(B) apply the net proceeds withheld 

14 under subparagraph (A) to any overdue support 

15 owed by the person; 

16 ‘‘(C) determine the anticipated future child 

17 support of the person; 

18 ‘‘(D) hold in trust, for the benefit of the 

19 child or children for whom the person has a 

20 support obligation, an amount equal to the less21 er of— 

22 ‘‘(i) the anticipated future child sup23 port determined under subparagraph (C); 

24 and 
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1 ‘‘(ii) the net proceeds withheld under 

2 subparagraph (A), as reduced by any ap3 plication of such proceeds under subpara4 graph (B); and 

5 ‘‘(E) distribute to the person any amounts 

6 not held in trust under subparagraph (D). 

7 ‘‘(2) APPLICATION OF AMOUNTS WITHHELD TO

8 OVERDUE CHILD SUPPORT.—If a person owes over9 due child support with respect to a child, and the 

10 State reserve trust unit holds in trust amounts with11 held from the person for the benefit of the child, the 

12 State reserve trust unit shall promptly apply such 

13 amounts to satisfy such overdue child support, if the 

14 State reserve trust unit determines that all other 

15 remedies available under the laws of the State are 

16 insufficient to satisfy the overdue child support. 

17 ‘‘(3) ADJUSTMENT OF AMOUNTS WITHHELD.— 

18 If the State reserve trust unit holds in trust 

19 amounts withheld from a person for the benefit of 

20 a child, and the support obligation of the person 

21 with respect to the child is adjusted under otherwise 

22 available State procedures, the State reserve trust 

23 unit shall promptly— 
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1 ‘‘(A) redetermine the anticipated future 

2 child support of the person with respect to the 

3 child; and 

4 ‘‘(B) if the amounts held in trust are less 

5 than the anticipated future child support as re6 determined under subparagraph (A), distribute 

7 the difference to the person. 

8 ‘‘(4) TERMINATION OF TRUST.—If the State re9 serve trust unit holds in trust amounts withheld 

10 from a person for the benefit of a child, the State 

11 reserve trust unit shall distribute the amounts to the 

12 person if— 

13 ‘‘(A) the person does not owe overdue child 

14 support with respect to the child; and 

15 ‘‘(B) the support obligation of the person 

16 with respect to the child has finally ceased. 

17 ‘‘(c) DEFINITIONS.—For purposes of this section, the 

18 following definitions shall apply: 

19 ‘‘(1) ANTICIPATED FUTURE CHILD SUPPORT.— 

20 The term ‘anticipated future child support’ means 

21 the present value of each child support payment that 

22 will come due under the support obligation of the 

23 person, assuming that the support obligation will fi24 nally cease solely because the child has attained an 
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1 age requiring the termination of the support obliga2 tion. 

3 ‘‘(2) FINALLY CEASE.—The term ‘finally cease’ 

4 means to cease— 

5 ‘‘(A) because the person or the child has 

6 died; 

7 ‘‘(B) because the child has attained an age 

8 requiring the termination of the support obliga9 tion; 

10 ‘‘(C) because the relationship of parent 

11 and child has been terminated by a final judi12 cial act, such as an order establishing nonpater13 nity or an order emancipating the child; or 

14 ‘‘(D) because of any other circumstance 

15 that results in cessation under State law that is 

16 permanent, substantial, and not solely a change 

17 in custody.’’. 

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