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generally to locate custodial parents for whom child support 
has been collected but not yet distributed. The report shall 
include an estimate of the total amount of undistributed 
child support and the average length of time it takes undis-
tributed child support to be distributed. To the extent the 
Secretary deems appropriate, the Secretary shall include in 
the report recommendations as to whether additional proce-
dures should be established at the Federal or State level to 
expedite the payment of undistributed child support. 
SEC. 304. USE OF NEW HIRE INFORMATION TO ASSIST IN 
ADMINISTRATION OF UNEMPLOYMENT COM-
PENSATION PROGRAMS. 
(a) IN GENERAL.—Section 453(j) (42 U.S.C. 653(j)) 
is amended by adding at the end the following: 
‘‘(7) INFORMATION COMPARISONS AND DISCLO-
SURE TO ASSIST IN ADMINISTRATION OF UNEMPLOY-
MENT COMPENSATION PROGRAMS.—
‘‘(A) IN GENERAL.—If, for purposes of ad-
ministering an unemployment compensation 
program under Federal or State law, a State 
agency responsible for the administration of such 
program transmits to the Secretary the name 
and social security account number of an indi-
vidual, the Secretary shall disclose to the State 
agency information on the individual and the
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individual’s employer that is maintained in the 
National Directory of New Hires, subject to the 
succeeding provisions of this paragraph. 
‘‘(B) CONDITION ON DISCLOSURE BY THE 
SECRETARY.—The Secretary shall make a disclo-
sure under subparagraph (A) only to the extent 
that the Secretary determines that the disclosure 
would not interfere with the effective operation of 
the program under this part. 
‘‘(C) USE AND DISCLOSURE OF INFORMA-
TION BY STATE AGENCIES.—
‘‘(i) IN
GENERAL.—A State agency 
may not use or disclose information pro-
vided under this paragraph except for pur-
poses of administering a program referred 
to in subparagraph (A). 
‘‘(ii) 
INFORMATION
SECURITY.—A 
State agency to which information is pro-
vided under this paragraph shall have in ef-
fect data security and control policies that 
the Secretary finds adequate to ensure the 
security of information obtained under this 
paragraph and to ensure that access to such 
information is restricted to authorized per-
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sons for purposes of authorized uses and 
disclosures. 
‘‘(iii) PENALTY FOR MISUSE OF INFOR-
MATION.—An officer or employee of a State 
agency who fails to comply with this sub-
paragraph shall be subject to the sanctions 
under subsection (l)(2) to the same extent as 
if such officer or employee was an officer or 
employee of the United States. 
‘‘(D) 
PROCEDURAL
REQUIREMENTS.—A 
State agency requesting information under this 
paragraph shall adhere to uniform procedures es-
tablished by the Secretary governing information 
requests and data matching under this para-
graph. 
‘‘(E) REIMBURSEMENT OF COSTS.—A State 
agency shall reimburse the Secretary, in accord-
ance with subsection (k)(3), for the costs incurred 
by the Secretary in furnishing the information 
requested under this paragraph.’’. 
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect on October 1, 2004.
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SEC. 305. DECREASE IN AMOUNT OF CHILD SUPPORT AR-
REARAGE TRIGGERING PASSPORT DENIAL. 
(a) IN
GENERAL.—Section 452(k)(1) (42 U.S.C. 
652(k)(1)) is amended by striking ‘‘$5,000’’ and inserting 
‘‘$2,500’’. 
(b) CONFORMING AMENDMENT.—Section 454(31) (42 
U.S.C. 654(31)) is amended by striking ‘‘$5,000’’ and in-
serting ‘‘$2,500’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall take effect on October 1, 2004. 
SEC. 306. USE OF TAX REFUND INTERCEPT PROGRAM TO 
COLLECT PAST-DUE CHILD SUPPORT ON BE-
HALF OF CHILDREN WHO ARE NOT MINORS. 
(a) IN GENERAL.—Section 464 (42 U.S.C. 664) is 
amended—
(1) in subsection (a)(2)(A), by striking ‘‘(as that 
term is defined for purposes of this paragraph under 
subsection (c))’’; and 
(2) in subsection (c)—
(A) in paragraph (1)—
(i) by striking ‘‘(1) Except as provided 
in paragraph (2), as used in’’ and inserting 
‘‘In’’; and 
(ii) by inserting ‘‘(whether or not a 
minor)’’ after ‘‘a child’’ each place it ap-
pears; and
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(B) by striking paragraphs (2) and (3). 
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall take effect on October 1, 2005. 
SEC. 307. GARNISHMENT OF COMPENSATION PAID TO VET-
ERANS FOR SERVICE-CONNECTED DISABIL-
ITIES IN ORDER TO ENFORCE OBLIGATIONS. 
(a) IN GENERAL.—Section 459(h)(1)(A)(ii)(V)) (42 
U.S.C. 659(h)(1)(A)(ii)(V)) is amended by striking all that 
follows ‘‘Armed Forces’’ and inserting ‘‘, except that such 
compensation shall not be subject to withholding pursuant 
to this section for payment of alimony unless the former 
member to whom it is payable is in receipt of retired or 
retainer pay and has waived a portion of such pay in order 
to receive such compensation;’’. 
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect on October 1, 2005. 
SEC. 308. IMPROVING FEDERAL DEBT COLLECTION PRAC-
TICES. 
(a) IN GENERAL.—Section 3716(h)(3) of title 31, 
United States Code, is amended to read as follows: 
‘‘(3)(A) Except as provided in subparagraph (B), in 
applying this subsection with respect to any debt owed to 
a State, subsection (c)(3)(A) shall not apply. 
‘‘(B) Subparagraph (A) shall not apply with respect 
to payments owed to an individual under title II of the
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Social Security Act, for purposes of an offset under this sec-
tion of such payments against past-due support (as defined 
in section 464(c) of the Social Security Act, without regard 
to paragraphs (2) and (3) of such section 464(c)) that is 
being enforced by a State agency administering a program 
under part D of title IV of that Act.’’. 
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect on October 1, 2004. 
SEC. 309. MAINTENANCE OF TECHNICAL ASSISTANCE FUND-
ING. 
Section 452(j) (42 U.S.C. 652(j)) is amended by insert-
ing ‘‘or the amount appropriated under this paragraph for 
fiscal year 2002, whichever is greater’’ before ‘‘, which shall 
be available’’. 
SEC. 310. MAINTENANCE OF FEDERAL PARENT LOCATOR 
SERVICE FUNDING. 
Section 453(o) (42 U.S.C. 653(o)) is amended—
(1) in the first sentence, by inserting ‘‘or the 
amount appropriated under this paragraph for fiscal 
year 2002, whichever is greater’’ before ‘‘, which shall 
be available’’; and 
(2) in the second sentence, by striking ‘‘for each 
of fiscal years 1997 through 2001’’.