(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