SEC. 6. SIMPLIFICATION OF RULES GOVERNING DISTRIBU-
TION OF CHILD SUPPORT PAYMENTS THAT
ARE IN ARREARS.
(a) IN GENERAL.—Section 457(a) of the Social Secu-
rity Act (42 U.S.C. 657(a)), as amended by section 2 of
this Act, is amended by inserting after paragraph (1) the
following:
‘‘(2) ARREARAGES.—To the extent the amount
so collected exceeds the amount required to be paid
to the family for the month in which collected, the
State shall distribute the amount so collected as fol-
lows:
‘‘(A) ARREARAGES THAT ACCRUED WHILE
THE
FAMILY
WAS
NOT
RECEIVING
ASSIST-
ANCE.—To the extent the amount so collected
is attributable to a support arrearage that ac-
crued for a period while the family was not re-
ceiving assistance from the State, the State
shall distribute the amount to the family.
‘‘(B) ARREARAGES THAT ACCRUED WHILE
THE FAMILY WAS RECEIVING ASSISTANCE.—To
the extent the amount so collected is attrib-
utable to a support arrearage that accrued for
a period while the family was receiving assist-
ance from the State, the State—
‘‘(i) may distribute the entire amount
to the family; or
‘‘(ii) if not distributing the entire
amount to the family, and not disregarding
the entire amount in determining the eligi-
bility of the family for assistance under the
State program funded under part A and in
determining 
the 
amount 
of 
such
assistance—
‘‘(I) shall pay to the Federal
Government the Federal share of the
amount, and may retain the State
share of the amount, but only to the
extent 
necessary 
to 
reimburse
amounts paid to the family as assist-
ance by the State; and
‘‘(II) shall distribute any remain-
der to the family.
‘‘(C) ORDER OF PAYMENTS.—In the case
of amounts collected on behalf of a family not
receiving assistance from the State, the State
shall distribute all amounts owed to the family
before distributing any amount owed to the
Federal Government or retaining any amount.’’.
(b) CONFORMING AMENDMENTS.—
(1) ASSIGNMENT
RULES
UNDER
TANF.—Sec-
tion 408(a)(3) of such Act (42 U.S.C. 608(a)(3)) is
amended—
(A) in subparagraph (A), by striking ‘‘so
provided to the family’’ and all that follows and
inserting ‘‘paid to the family under the pro-
gram, which accrue (or have accrued) while the
family receives assistance under the program.’’;
and
(B) in subparagraph (B), by inserting ‘‘(or
have accrued) before the family receives assist-
ance under the program or’’ after ‘‘accrue’’.
(2) ELIMINATION OF OBSOLETE PROVISIONS.—
Section 457 of such Act (42 U.S.C. 657) is
amended—
(A) in subsection (a), by striking para-
graphs (3) and (6) and redesignating para-
graphs (4) and (5) as paragraphs (3) and (4),
repsectively; and
(B) by striking subsection (b).
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to amounts collected pursuant to
assignments made on or after the date of the enactment
of this section, and, at the option of the State, may apply
to amounts collected pursuant to assignments made before
such date of enactment.
SEC. 7. BAN ON USE OF CHILD SUPPORT ENFORCEMENT
PROGRAM TO COLLECT MEDICAID EXPENSES
FROM NONCUSTODIAL PARENTS.
Section 454 of the Social Security Act (42 U.S.C.
654), as amended by section 4 of this Act, is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(33);
(2) by striking the period at the end of para-
graph (34) and inserting ‘‘; and’’; and
(3) by inserting after paragraph (34) the fol-
lowing:
‘‘(35) provide that the State shall not use the
State program operated under this part in any way
to collect any amount that is or may be owed to the
State by a noncustodial parent by reason of costs in-
curred to provide pre-natal, birthing, or post-natal
services under the State plan approved under title
XIX, subject to section 466(a)(19).’’.
SEC. 8. EFFECTIVE DATE.
(a) IN GENERAL.—Except as provided in section 6(c)
of this Act and subsection (b) of this section, the amend-
ments made by this Act shall take effect on October 1,
2000, and shall apply to payments under parts A and D
of title IV of the Social Security Act for calendar quarters
beginning on or after such date, and without regard to
whether regulations to implement such amendments (in
the case of State programs operated under such part D)
are promulgated by such date.
(b) DELAY PERMITTED IF STATE LEGISLATION RE-
QUIRED.—In the case of a State plan approved under sec-
tion 454 of the Social Security Act which requires State
legislation (other than legislation appropriating funds) in
order for the plan to meet the additional requirements im-
posed by the amendments made by this Act, the State plan
shall not be regarded as failing to comply with the require-
ments of such section solely on the basis of the failure
of the plan to meet such additional requirements before
the 1st day of the 1st calendar quarter beginning after
the close of the 1st regular session of the State legislature
that begins after the date of the enactment of this Act.
For purposes of the previous sentence, in the case of a
State that has a 2-year legislative session, each year of
such session shall be deemed to be a separate regular ses-
sion of the State legislature.
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