I
107TH CONGRESS
1ST SESSION
H. R. 413
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
FEBRUARY 6, 2001
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.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Child Support Reserve
Trust Act’’.
SEC. 2. STATE OBLIGATION TO PROVIDE CHILD SUPPORT
RESERVE TRUST SYSTEM.
Section 454 of the Social Security Act (42 U.S.C.
654) is amended—
(1) in paragraph (32) by striking ‘‘and’’ at the
end;
(2) in paragraph (33) by striking the period at
the end and inserting ‘‘; and’’; and
(3) by inserting after paragraph (33) the fol-
lowing new paragraph:
‘‘(34) provide that, on and after January 1,
2001, the State agency will have in effect a State re-
serve trust system that meets the requirements of
section 454C.’’.
SEC. 3. REQUIREMENTS OF CHILD SUPPORT RESERVE
TRUST SYSTEM.
The Social Security Act is amended by inserting after
section 454B (42 U.S.C. 654b) the following new section:
‘‘SEC. 454C. RESERVE TRUST SYSTEM.
‘‘(a) IN GENERAL.—In order for a State to meet the
requirements of this section, the State must—
‘‘(1) have in effect laws requiring the use of the
procedures described in subsection (b); and
‘‘(2) establish and operate a unit (which shall
be known as the State reserve trust unit) that has
authority to carry out, and shall carry out, such laws
and procedures.
‘‘(b) REQUIRED PROCEDURES.—The procedures de-
scribed in this subsection are procedures to carry out the
following:
‘‘(1) WITHHOLDING OF ANTICIPATED FUTURE
CHILD SUPPORT.—On any sale or refinancing by a
person of any real property in the State against
which a lien for amounts of overdue support owed by
the person has ever arisen, without regard to wheth-
er such lien has ever been extinguished, the State re-
serve trust unit shall—
‘‘(A) withhold the net proceeds of the per-
son from the sale or refinancing;
‘‘(B) apply the net proceeds withheld
under subparagraph (A) to any overdue support
owed by the person;
‘‘(C) determine the anticipated future child
support of the person;
‘‘(D) hold in trust, for the benefit of the
child or children for whom the person has a
support obligation, an amount equal to the less-
er of—
‘‘(i) the anticipated future child sup-
port determined under subparagraph (C);
and
‘‘(ii) the net proceeds withheld under
subparagraph (A), as reduced by any ap-
plication of such proceeds under subpara-
graph (B); and
‘‘(E) distribute to the person any amounts
not held in trust under subparagraph (D).
‘‘(2) APPLICATION OF AMOUNTS WITHHELD TO
OVERDUE CHILD SUPPORT.—If a person owes over-
due child support with respect to a child, and the
State reserve trust unit holds in trust amounts with-
held from the person for the benefit of the child, the
State reserve trust unit shall promptly apply such
amounts to satisfy such overdue child support, if the
State reserve trust unit determines that all other
remedies available under the laws of the State are
insufficient to satisfy the overdue child support.
‘‘(3) ADJUSTMENT OF AMOUNTS WITHHELD.—
If the State reserve trust unit holds in trust
amounts withheld from a person for the benefit of
a child, and the support obligation of the person
with respect to the child is adjusted under otherwise
available State procedures, the State reserve trust
unit shall promptly—
‘‘(A) redetermine the anticipated future
child support of the person with respect to the
child; and
‘‘(B) if the amounts held in trust are less
than the anticipated future child support as re-
determined under subparagraph (A), distribute
the difference to the person.
‘‘(4) TERMINATION OF TRUST.—If the State re-
serve trust unit holds in trust amounts withheld
from a person for the benefit of a child, the State
reserve trust unit shall distribute the amounts to the
person if—
‘‘(A) the person does not owe overdue child
support with respect to the child; and
‘‘(B) the support obligation of the person
with respect to the child has finally ceased.
‘‘(c) DEFINITIONS.—For purposes of this section, the
following definitions shall apply:
‘‘(1) ANTICIPATED FUTURE CHILD SUPPORT.—
The term ‘anticipated future child support’ means
the present value of each child support payment that
will come due under the support obligation of the
person, assuming that the support obligation will fi-
nally cease solely because the child has attained an
age requiring the termination of the support obliga-
tion.
‘‘(2) FINALLY CEASE.—The term ‘finally cease’
means to cease—
‘‘(A) because the person or the child has
died;
‘‘(B) because the child has attained an age
requiring the termination of the support obliga-
tion;
‘‘(C) because the relationship of parent
and child has been terminated by a final judi-
cial act, such as an order establishing nonpater-
nity or an order emancipating the child; or
‘‘(D) because of any other circumstance
that results in cessation under State law that is
permanent, substantial, and not solely a change
in custody.’’.
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