H. R. 3734—139
‘‘(c) DESIGNATION
OF
AGENT; RESPONSE
TO
NOTICE
OR
PROCESS—
‘‘(1) DESIGNATION
OF
AGENT.—The head of each agency
subject to this section shall—
‘‘(A) designate an agent or agents to receive orders
and accept service of process in matters relating to child
support or alimony; and
‘‘(B) annually publish in the Federal Register the des-
ignation of the agent or agents, identified by title or posi-
tion, mailing address, and telephone number.
‘‘(2) RESPONSE TO NOTICE OR PROCESS.—If an agent des-
ignated pursuant to paragraph (1) of this subsection receives
notice pursuant to State procedures in effect pursuant to sub-
section (a)(1) or (b) of section 466, or is effectively served
with any order, process, or interrogatory, with respect to an
individual’s child support or alimony payment obligations, the
agent shall—
‘‘(A) as soon as possible (but not later than 15 days)
thereafter, send written notice of the notice or service
(together with a copy of the notice or service) to the individ-
ual at the duty station or last-known home address of
the individual;
‘‘(B) within 30 days (or such longer period as may
be prescribed by applicable State law) after receipt of a
notice pursuant to such State procedures, comply with all
applicable provisions of section 466; and
‘‘(C) within 30 days (or such longer period as may
be prescribed by applicable State law) after effective service
of any other such order, process, or interrogatory, respond
to the order, process, or interrogatory.
‘‘(d) PRIORITY OF CLAIMS.—If a governmental entity specified
in subsection (a) receives notice or is served with process, as pro-
vided in this section, concerning amounts owed by an individual
to more than 1 person—
‘‘(1) support collection under section 466(b) must be given
priority over any other process, as provided in section 466(b)(7);
‘‘(2) allocation of moneys due or payable to an individual
among claimants under section 466(b) shall be governed by
section 466(b) and the regulations prescribed under such sec-
tion; and
‘‘(3) such moneys as remain after compliance with para-
graphs (1) and (2) shall be available to satisfy any other such
processes on a first-come, first-served basis, with any such
process being satisfied out of such moneys as remain after
the satisfaction of all such processes which have been previously
served.
‘‘(e) NO REQUIREMENT TO VARY PAY CYCLES.—A governmental
entity that is affected by legal process served for the enforcement
of an individual’s child support or alimony payment obligations
shall not be required to vary its normal pay and disbursement
cycle in order to comply with the legal process.
‘‘(f) RELIEF FROM LIABILITY.—
‘‘(1) Neither the United States, nor the government of the
District of Columbia, nor any disbursing officer shall be liable
with respect to any payment made from moneys due or payable
from the United States to any individual pursuant to legal
process regular on its face, if the payment is made in accordance
H. R. 3734—140
with this section and the regulations issued to carry out this
section.
‘‘(2) No Federal employee whose duties include taking
actions necessary to comply with the requirements of subsection
(a) with regard to any individual shall be subject under any
law to any disciplinary action or civil or criminal liability or
penalty for, or on account of, any disclosure of information
made by the employee in connection with the carrying out
of such actions.
‘‘(g) REGULATIONS.—Authority to promulgate regulations for the
implementation of this section shall, insofar as this section applies
to moneys due from (or payable by)—
‘‘(1) the United States (other than the legislative or judicial
branches of the Federal Government) or the government of
the District of Columbia, be vested in the President (or the
designee of the President);
‘‘(2) the legislative branch of the Federal Government, be
vested jointly in the President pro tempore of the Senate and
the Speaker of the House of Representatives (or their des-
ignees), and
‘‘(3) the judicial branch of the Federal Government, be
vested in the Chief Justice of the United States (or the designee
of the Chief Justice).
‘‘(h) MONEYS SUBJECT TO PROCESS.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), moneys paid
or payable to an individual which are considered to be based
upon remuneration for employment, for purposes of this
section—
‘‘(A) consist of—
‘‘(i) compensation paid or payable for personal
services of the individual, whether the compensation
is denominated as wages, salary, commission, bonus,
pay, allowances, or otherwise (including severance pay,
sick pay, and incentive pay);
‘‘(ii) periodic benefits (including a periodic benefit
as defined in section 228(h)(3)) or other payments—
‘‘(I) under the insurance system established
by title II;
‘‘(II) under any other system or fund estab-
lished by the United States which provides for
the payment of pensions, retirement or retired pay,
annuities, dependents’ or survivors’ benefits, or
similar amounts payable on account of personal
services performed by the individual or any other
individual;
‘‘(III) as compensation for death under any
Federal program;
‘‘(IV) under any Federal program established
to provide ‘black lung’ benefits; or
‘‘(V) by the Secretary of Veterans Affairs as
compensation for a service-connected disability
paid by the Secretary to a former member of the
Armed Forces who is in receipt of retired or
retainer pay if the former member has waived
a portion of the retired or retainer pay in order
to receive such compensation; and
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‘‘(iii) worker’s compensation benefits paid under
Federal or State law but
‘‘(B) do not include any payment—
‘‘(i) by way of reimbursement or otherwise, to
defray expenses incurred by the individual in carrying
out duties associated with the employment of the
individual; or
‘‘(ii) as allowances for members of the uniformed
services payable pursuant to chapter 7 of title 37,
United States Code, as prescribed by the Secretaries
concerned (defined by section 101(5) of such title) as
necessary for the efficient performance of duty.
‘‘(2) CERTAIN
AMOUNTS
EXCLUDED.—In determining the
amount of any moneys due from, or payable by, the United
States to any individual, there shall be excluded amounts
which—
‘‘(A) are owed by the individual to the United States;
‘‘(B) are required by law to be, and are, deducted
from the remuneration or other payment involved, includ-
ing Federal employment taxes, and fines and forfeitures
ordered by court-martial;
‘‘(C) are properly withheld for Federal, State, or local
income tax purposes, if the withholding of the amounts
is authorized or required by law and if amounts withheld
are not greater than would be the case if the individual
claimed all dependents to which he was entitled (the
withholding of additional amounts pursuant to section
3402(i) of the Internal Revenue Code of 1986 may be per-
mitted only when the individual presents evidence of a
tax obligation which supports the additional withholding);
‘‘(D) are deducted as health insurance premiums;
‘‘(E) are deducted as normal retirement contributions
(not including amounts deducted for supplementary cov-
erage); or
‘‘(F) are deducted as normal life insurance premiums
from salary or other remuneration for employment (not
including amounts deducted for supplementary coverage).
‘‘(i) DEFINITIONS.—For purposes of this section—
‘‘(1) UNITED
STATES.—The term ‘United States’ includes
any department, agency, or instrumentality of the legislative,
judicial, or executive branch of the Federal Government, the
United States Postal Service, the Postal Rate Commission, any
Federal corporation created by an Act of Congress that is wholly
owned by the Federal Government, and the governments of
the territories and possessions of the United States.
‘‘(2) CHILD SUPPORT.—The term ‘child support’, when used
in reference to the legal obligations of an individual to provide
such support, means amounts required to be paid under a
judgment, decree, or order, whether temporary, final, or subject
to modification, issued by a court or an administrative agency
of competent jurisdiction, for the support and maintenance
of a child, including a child who has attained the age of majority
under the law of the issuing State, or a child and the parent
with whom the child is living, which provides for monetary
support, health care, arrearages or reimbursement, and which
may include other related costs and fees, interest and penalties,
income withholding, attorney’s fees, and other relief.
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‘‘(3) ALIMONY.—
‘‘(A) IN GENERAL.—The term ‘alimony’, when used in
reference to the legal obligations of an individual to provide
the same, means periodic payments of funds for the support
and maintenance of the spouse (or former spouse) of the
individual, and (subject to and in accordance with State
law) includes separate maintenance, alimony pendente lite,
maintenance, and spousal support, and includes attorney’s
fees, interest, and court costs when and to the extent
that the same are expressly made recoverable as such
pursuant to a decree, order, or judgment issued in accord-
ance with applicable State law by a court of competent
jurisdiction.
‘‘(B) EXCEPTIONS.—Such term does not include—
‘‘(i) any child support; or
‘‘(ii) any payment or transfer of property or its
value by an individual to the spouse or a former spouse
of the individual in compliance with any community
property settlement, equitable distribution of property,
or other division of property between spouses or former
spouses.
‘‘(4) PRIVATE
PERSON.—The term ‘private person’ means
a person who does not have sovereign or other special immunity
or privilege which causes the person not to be subject to legal
process.
‘‘(5) LEGAL PROCESS.—The term ‘legal process’ means any
writ, order, summons, or other similar process in the nature
of garnishment—
‘‘(A) which is issued by—
‘‘(i) a court or an administrative agency of com-
petent jurisdiction in any State, territory, or possession
of the United States;
‘‘(ii) a court or an administrative agency of com-
petent jurisdiction in any foreign country with which
the United States has entered into an agreement which
requires the United States to honor the process; or
‘‘(iii) an authorized official pursuant to an order
of such a court or an administrative agency of com-
petent jurisdiction or pursuant to State or local law;
and
‘‘(B) which is directed to, and the purpose of which
is to compel, a governmental entity which holds moneys
which are otherwise payable to an individual to make
a payment from the moneys to another party in order
to satisfy a legal obligation of the individual to provide
child support or make alimony payments.’’.
(b) CONFORMING AMENDMENTS.—
(1) TO
PART
D
OF
TITLE
IV.—Sections 461 and 462 (42
U.S.C. 661 and 662) are repealed.
(2) TO TITLE 5, UNITED STATES CODE.—Section 5520a of
title 5, United States Code, is amended, in subsections (h)(2)
and (i), by striking ‘‘sections 459, 461, and 462 of the Social
Security Act (42 U.S.C. 659, 661, and 662)’’ and inserting ‘‘sec-
tion 459 of the Social Security Act (42 U.S.C. 659)’’.
(c) MILITARY RETIRED AND RETAINER PAY.—
(1) DEFINITION OF COURT.—Section 1408(a)(1) of title 10,
United States Code, is amended—