I
103D CONGRESS
2D SESSION
H. R. 5225
To strengthen child support enforcement.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 6, 1994
Mr. MENENDEZ introduced the following bill; which was referred jointly to the
Committees on Ways and Means, Education and Labor, and Banking, Fi-
nance and Urban Affairs
A BILL
To strengthen child support enforcement.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Child Support Responsibility Act of 1994’’.
(b) TABLE OF CONTENTS.—The table of contents of
this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. National child support order registry.
Sec. 3. Increased Federal financial participation for States with unified child
support enforcement programs.
Sec. 4. Modification of W–4 reporting requirements to provide for reporting of
child support obligations of employees.
Sec. 5. Collection of child support.
Sec. 6. Distribution of portion of child support collected.
Sec. 7. Workers’ compensation benefits subject to garnishment.
Sec. 8. Liens on certificates of vehicle title.
Sec. 9. Attachment of bank accounts.
Sec. 10. Seizure of lottery winnings, settlements, payouts, awards, and be-
quests, and sale of forfeited property, to pay child support ar-
rearages.
Sec. 11. Use of administrative process to impose liens against and seize prop-
erty of persons delinquent in child support payments.
Sec. 12. Fraudulent transfer pursuit.
Sec. 13. Technical correction to ERISA definition of medical child support
order.
Sec. 14. Inclusion in consumer credit reports of information on overdue child
support obligations of the consumer.
Sec. 15. Hold on occupational, professional, and business licenses.
Sec. 16. Driver’s licenses and vehicle registrations denied to persons delinquent
in child support payments or failing to appear in child support
cases.
Sec. 17. Simplified process for review and adjustment of certain child support
orders.
SEC. 2. NATIONAL CHILD SUPPORT ORDER REGISTRY.
(a) ESTABLISHMENT.—
(1) IN GENERAL.—The Secretary of the Treas-
ury shall establish in the Internal Revenue Service
a national registry of all child support orders.
(2) CHILD
SUPPORT
ORDER
DEFINED.—As
used in this section, the term ‘‘child support order’’
means an order, issued or modified by a State court
or an administrative process established under State
law, that requires an individual to make payments
for support and maintenance of a child or of a child
and the parent with whom the child is living.
(b) TRANSMISSION OF COPIES OF CHILD SUPPORT
ORDERS TO THE NATIONAL REGISTRY.—Section 466(a)
of the Social Security Act (42 U.S.C. 666(a)) is amended
by inserting after paragraph (11) the following:
‘‘(12) Procedures to ensure that—
‘‘(A) each child support order issued or
modified in the State contains the social secu-
rity account number of each parent with rights
or obligations under the order;
‘‘(B) within 5 days after the issuance or
modification of a child support order in the
State, a copy of the order is transmitted to the
national child support order registry established
under section 2(a) of the Child Support Re-
sponsibility Act of 1994;
‘‘(C) within 2 years after the date of the
enactment of this paragraph, a copy of each
child support order being enforced by the State
pursuant to this part which has not been trans-
mitted pursuant to subparagraph (B) is trans-
mitted to the national child support order reg-
istry;
‘‘(D) within 5 years after the date of the
enactment of this paragraph, a copy of each
child support issued or modified in the State
which has not been transmitted pursuant to
subparagraph (B) or (C) and which a party to
the order has requested be sent to the national
child support order registry be transmitted to
the registry; and
‘‘(E) with each order transmitted pursuant
to subparagraph (B), (C), or (D)—
‘‘(i) a notice is included as to the date
the order is required or scheduled to be re-
viewed by a court or an administrative
process established under State law; and
‘‘(ii) a certified statement of arrears
(if any) owed under the order is included
if a party to the order is receiving services
under the State plan.’’.
(c) MAINTENANCE OF ABSTRACTS OF CHILD SUP-
PORT ORDERS.—The national registry shall maintain an
abstract of each child support order, which shall contain
the following information:
(1) The names, addresses, and social security
account numbers of each individual with rights or
obligations under the order, to the extent that the
authority that issued the order has not prohibited
the release of such information.
(2) The name and date of birth of any child
with respect to whom payments are to be made
under the order.
(3) The dollar amount of child support required
to be paid on a monthly basis under the order.
(4) The date the order was issued or most re-
cently modified, and each date the order is required
or scheduled to be reviewed by a court or an admin-
istrative process established under State law.
(5) Any orders superseded by the order.
(6) Such other information as the Secretary of
the Treasury, in consultation with the Secretary of
Health and Human Services, shall, by regulation re-
quire.
(d) PROVISION OF CHILD SUPPORT INFORMATION TO
EMPLOYERS.—Upon receipt from an employer of a
W–4 form completed pursuant to section 4(b) of this Act
by an employee of the employer, the national registry shall
report to the employer such information as the national
registry may have as to—
(1) whether the employee has a legal obligation
to provide child support (as defined in section
462(b) of the Social Security Act) which is to be col-
lected, in whole or in part, through wage withholding
pursuant to an order issued by a State court or an
order of an administrative process established under
State law; and
(2) the aggregate amount of all such obliga-
tions.
(e) LAW ENFORCEMENT ASSISTANCE.—
(1) INFORMATION ACCESS.—For the sole pur-
pose of locating a parent to establish a child support
order or a parent who owes a child support arrear-
age, each child support enforcement agency shall—
(A) have access to the National Law En-
forcement Telecommunications Network and to
the National Criminal Information Center; and
(B) receive an access code number, re-
ferred to as an ORI number.
(2) GRANT REDUCTION FOR FAILURE TO RE-
PORT.—A State that fails to report warrants issued
in child support cases to the designated State law
enforcement agencies on the first day of each fiscal
year succeeding the first fiscal year beginning after
September 30, 1995, shall receive a 10 percent re-
duction of funds received under the Omnibus Crime
Control and Safe Streets Act of 1968.
SEC. 3. INCREASED FEDERAL FINANCIAL PARTICIPATION
FOR STATES WITH UNIFIED CHILD SUPPORT
ENFORCEMENT PROGRAMS.
Section 455(a)(2) of the Social Security Act (42
U.S.C. 655(a)(2)) is amended—
(1) by inserting ‘‘(A)’’ after ‘‘(2)’’;
(2) by redesignating subparagraphs (A), (B),
and (C) as clauses (i), (ii), and (iii), respectively;
and
(3) by adding after and below the end the fol-
lowing:
‘‘(B) The percent described in this paragraph for a
State for a quarter in a fiscal year shall be the percent
specified in subparagraph (A) for the fiscal year increased
by 5 percentage points if the following apply to the State
child support enforcement program:
‘‘(i) All authority, accountability, and respon-
sibility for the program is centered at the State level
in a unified State agency.
‘‘(ii) The program is administered by a single
agency, and policymaking for the program is central-
ized.
‘‘(iii) There is statewide uniformity of case-
processing procedures and forms.
‘‘(iv) There is a uniform hearing and appeal
process.
‘‘(v) All financing decisions are made at the
State level.
‘‘(vi) All non-Federal funding is appropriated at
the State level.
‘‘(vii) All personnel and contracting decision
making is made by the State agency, and all person-
nel are employees of the State agency, except that
the Secretary may by regulation establish exceptions
with respect to not more than 10 percent of person-
nel.’’.
SEC. 4. MODIFICATION OF W–4 REPORTING REQUIREMENTS
TO PROVIDE FOR REPORTING OF CHILD SUP-
PORT OBLIGATIONS OF EMPLOYEES.
(a) ESTABLISHMENT OF REPORTING SYSTEM.—The
Secretary of the Treasury, in consultation with the Sec-
retary of Labor, shall establish a system for the reporting
of information relating to child support obligations of em-
ployees that meets the requirements of this section.
(b) EMPLOYEE OBLIGATIONS.—Under the system,
each employee shall be required to file with the employer
of the employee, within 5 days after the later of the effec-
tive date of this section or the date the employee is hired,
a W–4 form that indicates—
(1) whether the employee has a legal obligation
to provide child support (as defined in section
462(b) of the Social Security Act) which is to be col-
lected, in whole or in part, through wage withholding
pursuant to an order issued by a State court or an
order of an administrative process established under
State law; and
(2) if so—
(A) the aggregate amount of all such obli-
gations; and
(B) the name and address of any person to
whom the employee has such an obligation.
(c) EMPLOYER OBLIGATIONS.—
(1) IN GENERAL.—Subtitle C of the Internal
Revenue Code of 1986 (relating to employment
taxes) is amended by inserting after chapter 24 the
following new chapter:
‘‘CHAPTER 24A—COLLECTION OF CHILD
SUPPORT OBLIGATIONS AT SOURCE
ON WAGES
‘‘Sec. 3411. Child support obligations collected at source.
‘‘SEC. 3411. CHILD SUPPORT OBLIGATIONS COLLECTED AT
SOURCE.
‘‘(a) REQUIREMENT OF WITHHOLDING.—
‘‘(1) WAGE
WITHHOLDING
AS
INDICATED
BY
THE
EMPLOYEE.—Each employer who receives a
completed W–4 form from an employee pursuant to
section 4(b) of the Child Support Responsibility Act
of 1994 which indicates that the employee has a
legal obligation to provide child support (as defined
in section 462(b) of the Social Security Act) shall—
‘‘(A) deduct and withhold from the wages
of the employee the amount indicated on the
W–4 form as a child support obligation;
‘‘(B) send such amount to Secretary; and
‘‘(C) forward the form to the national child
support order registry.
‘‘(2) CORRECTION OF WITHHOLDING INSTRUC-
TIONS.—If the national child support order registry
notifies the employer that an employee has an obli-
gation referred to in paragraph (1), the employer
shall—
‘‘(A) deduct and withhold from the wages
of the employee the greater of—
‘‘(i) the amount indicated on the
W–4 form as a child support obligation; or
‘‘(ii) the amount that such registry in-
dicates is to be deducted and withheld
from the wages of the employee to satisfy
such obligation; and
‘‘(B) send the amount so withheld to the
Secretary.
‘‘(b) CERTAIN OBLIGATIONS EXEMPT.—This section
shall not apply to a child support obligation if the order
requiring payment of such obligation specifies that such
obligation is exempt from the requirements of this section.
‘‘(c) LIABILITY FOR PAYMENT.—The employer shall
be liable for the payment of amounts deducted and with-
held under subsection (a) to the Secretary.
‘‘(d) NATIONAL
CHILD
SUPPORT
ORDER
REG-
ISTRY.—For purposes of this section, the term ‘national
child support order registry’ means the national registry
of all child support orders established under section 2 of
the Child Support Responsibility Act of 1994.
‘‘(e) SPECIAL RULES.—For purposes of this chapter
(and so much of subtitle F as relates to this chapter), any
amount required to be deducted and withheld under this
section shall be treated as if it were a tax withheld under
chapter 24 and rules similar to the rules of chapter 24
shall apply.’’
(2) CLERICAL
AMENDMENT.—The table of
chapters for subtitle C of such Code is amended by
inserting after the item relating to chapter 24 the
following new item:
‘‘Chapter 24A. Child support obligations collected at source.’’
SEC. 5. COLLECTION OF CHILD SUPPORT.
(a) IN GENERAL.—Chapter 77 of the Internal Reve-
nue Code of 1986 (relating to miscellaneous provisions)
is amended by adding at the end thereof the following new
section:
‘‘SEC. 7524. COLLECTION OF CHILD SUPPORT.
‘‘(a) MONTHLY PAYMENTS BY INDIVIDUALS WITH
NO OR INSUFFICIENT WAGE WITHHOLDING FOR CHILD
SUPPORT.—
‘‘(1) IN GENERAL.—Each individual who has a
child support payment shortfall for any month shall
pay an amount equal to such shortfall to the Sec-
retary not later than the close of such month or
such earlier date specified by the Secretary.
‘‘(2) CHILD SUPPORT PAYMENT SHORTFALL.—
For purposes of this subsection, the term ‘child sup-
port payment shortfall’ means, with respect to any
month, an amount equal to the excess (if any) of—
‘‘(A) the amount of the applicable child
support obligation for such month, over
‘‘(B) the amount (if any) deducted and
withheld under section 3411 from the wages
paid to such individual during such month.
‘‘(3) CERTAIN
OBLIGATIONS
EXEMPT.—This
subsection shall not apply to a child support obliga-
tion if the order requiring payment of such obliga-
tion specifies that such obligation is exempt from the
requirements of this subsection.
‘‘(b) PAYMENTS OF ARREARAGES BY INDIVIDUALS
NO LONGER EXEMPT FROM WITHHOLDING OR MONTHLY
PAYMENTS.—
‘‘(1) IN GENERAL.—If—
‘‘(A) for any month ending with or within
the taxable year, a child support obligation was
exempt from section 3111 and subsection (a) of
this section,
‘‘(B) such obligation ceases to be so ex-
empt during such year, and
‘‘(C) such individual failed to pay the full
amount of such obligation for any month end-
ing with or within such year for which such ob-
ligation was so exempt,
then such individual shall pay (not later than the
date specified by the Secretary) an amount equal to
the excess of the full amount of such obligation for
the months referred to in subparagraph (A) over the
amount paid before such date under such obligation
for such months.
‘‘(2) DETERMINATION OF AMOUNT REQUIRED
TO
BE
PAID.—Subsection (d) shall apply to an
amount required to be paid under this subsection
only after the Secretary’s determination of such
amount (after a hearing on the record) becomes
final.
‘‘(c) RECONCILIATION OF CHILD SUPPORT OBLIGA-
TION AND PAYMENTS ON INCOME TAX RETURN.—
‘‘(1) IN GENERAL.—Each applicable child sup-
port obligation of any individual for months ending
with or within any taxable year shall be paid—
‘‘(A) not later than the last date (deter-
mined without regard to extensions) prescribed
for filing the individual’s return of tax imposed
by chapter 1 for such taxable year, and
‘‘(B)(i) if such return is filed not later
than such date, with such return, or
‘‘(ii) in any case not described in clause (i),
in such manner as the Secretary may by regula-
tions prescribe.
‘‘(2) OFFSET FOR WITHHELD CHILD SUPPORT,
ETC.—There shall be allowed as a credit against the
amount required to be paid under paragraph (1) by
an individual the sum of—
‘‘(A) the amount (if any) deducted and
withheld under section 3411 from the wages re-
ceived by such individual during the taxable
year,
‘‘(B) the amount (if any) paid by such in-
dividual under section 6654 by reason of sub-
section (f)(3) thereof for such taxable year,
‘‘(C) the amount (if any) paid by such in-
dividual under subsections (a) and (b) for such
taxable year, and
‘‘(D) in the case of an obligation which
was exempt from the requirements of section
3411 and subsection (a) of this section for only
a portion of the taxable year, the amount paid
(for such portion of the taxable year) by such
individual directly to the person to whom the
obligation is owed (or, if such person has as-
signed to a State the right to collect the obliga-
tion, the State).
‘‘(3) CREDIT OR REFUND FOR PAYMENTS IN
EXCESS OF ACTUAL OBLIGATION.—There shall be al-
lowed as a credit against the tax imposed by subtitle
A for the taxable year an amount equal to the excess
(if any) of—
‘‘(A) the aggregate of the amounts de-
scribed in subparagraphs (A), (B), (C), and (D)
of paragraph (2) for such taxable year, over
‘‘(B) the aggregate of the applicable child
support obligations of the taxpayer for such
taxable year.
The credit allowed by this paragraph shall be treated
for purposes of this title as allowed by subpart C of
part IV of subchapter A of chapter 1.
‘‘(d) FAILURE TO PAY AMOUNT OWING.—If an indi-
vidual fails to pay the full amount required to be paid
under subsection (a), (b), or (c) on or before due date for
such payment, the Secretary shall assess and collect the
unpaid amount in the same manner, with the same pow-
ers, and subject to the same limitations applicable to a
tax imposed by subtitle C the collection of which would
be jeopardized by delay.
‘‘(e) APPLICATION OF SECTION TO CHILD SUPPORT
ORDERS NOT INITIALLY SUBJECT TO SECTION.—
‘‘(1) IN GENERAL.—In the case of a child sup-
port obligation which becomes an applicable child
support obligation for any month after January
1996, the amount required to be paid under sub-
section (a) for the first such month shall be in-
creased by the excess (if any) of—
‘‘(A) the aggregate amount required to be
paid under such obligation for all months before
such month (including months in prior taxable
years), over
‘‘(B) the aggregate amount paid under
such obligation for all months before such
month.
‘‘(2) CROSS REFERENCE.—
‘‘For agreements to pay tax in installments, see
section 6159.
‘‘(f) APPLICABLE CHILD SUPPORT OBLIGATION.—
For purposes of this section, the term ‘applicable child
support obligation’ means a legal obligation to provide
child support (as defined in section 462(b) of the Social
Security Act), except that such term shall not include any
such obligation for any period during which section
466(a)(12) of the Social Security Act (42 U.S.C.
666(a)(12)) does not apply to the child support order with
respect thereto until the order is registered.’’
(b) WITHHELD CHILD SUPPORT TO BE SHOWN ON
W–2.—Subsection (a) of section 6051 of such Code is
amended by striking ‘‘and’’ at the end of paragraph (8),
by striking the period at the end of paragraph (9) and
inserting ‘‘, and’’, and by inserting after paragraph (9)
the following new paragraph:
‘‘(10) the total amount deducted and withheld
as a child support obligation under section 3411.’’
(c) APPLICATION OF ESTIMATED TAX PENALTY.—
(1) Subsection (f) of section 6654 of such Code
(relating to failure by individual to pay estimated in-
come tax) is amended by striking ‘‘minus’’ at the
end of paragraph (2) and inserting ‘‘plus’’, by redes-
ignating paragraph (3) as paragraph (4), and by in-
serting after paragraph (2) the following new para-
graph:
‘‘(3) the aggregate applicable child support obli-
gation (as defined in section 7524(a)) of the tax-
payer for months ending with or within the taxable
year, minus’’.
(2) Paragraph (1) of section 6654(d) of such
Code is amended by adding at the end the following
new subparagraph:
‘‘(D) DETERMINATION OF REQUIRED AN-
NUAL PAYMENT FOR TAXPAYERS REQUIRED TO
PAY CHILD SUPPORT.—In the case of a tax-
payer who is required under section 7524 to
pay an applicable child support obligation (as
defined in section 7524) for any month ending
with or within the taxable year, the required
annual payment shall be the sum of—
‘‘(i) the amount determined under
subparagraph (B) without regard to sub-
section (f)(3), plus
‘‘(ii) the aggregate amount of such
obligation for all months ending with or
within the taxable year.’’
(3) CREDIT FOR WITHHELD AMOUNTS, ETC.—
Subsection (g) of section 6654 of such Code is
amended by adding at the end the following new
paragraph:
‘‘(3) CHILD SUPPORT.—For purposes of apply-
ing this section, the sum of—
‘‘(A) amounts deducted and withheld
under section 3411, and
‘‘(B) amounts paid under subsections (a)
and (b) of section 7524,
shall be deemed to be a payment of the amount de-
scribed in subsection (f)(3) on the date such
amounts were actually withheld or paid, as the case
may be.’’
(d) CLERICAL AMENDMENT.—The table of sections
for chapter 77 of such Code is amended by adding at the
end thereof the following new item:
‘‘Sec. 7524. Collection of child support.’’
SEC. 6. DISTRIBUTION OF PORTION OF CHILD SUPPORT
COLLECTED.
(a) IN GENERAL.—The Secretary of the Treasury
shall pay to the appropriate payee the sum of the following
amounts which are received by the Secretary on account
of a child support obligation payable to such payee:
(1) The amounts deducted and withheld under
section 3411 of the Internal Revenue Code of 1986.
(2) The amounts paid under section 6654 of
such Code (relating to estimated tax payments) by
reason of subsection (f)(3) thereof.
(3) The amounts paid under section 7524 of
such Code (relating to collection of child support).
(b) APPROPRIATE PAYEE.—As used in this section,
the term ‘‘appropriate payee’’ means, with respect to a
child support obligation—
(1) the person to whom the obligation is owed;
or
(2) if such person has assigned to a State the
right to collect the obligation, the State.
(c) INTEREST PAYABLE ON LATE PAYMENTS BY
SECRETARY.—If, within 10 days after the Secretary of the
Treasury receives an amount referred to in a paragraph
of subsection (a), the Secretary fails to pay any cor-
responding amount required to be paid under subsection
(a), the Secretary shall pay, in addition to the amount re-
quired to be paid, to the appropriate payee interest at the
underpayment rate (determined under section 6621 of
such Code, and compounded daily) on such amount for
the period beginning on such date and ending on the date
paid.
(d) COORDINATION WITH RULES GOVERNING DIS-
TRIBUTION
OF
CHILD
SUPPORT
COLLECTED
BY
A
STATE.—Section 457 of the Social Security Act (42
U.S.C. 657) is amended by adding at the end the follow-
ing:
‘‘(e) For purposes of this section, amounts received
by a State from the Secretary of the Treasury pursuant
to section 6(a) of the Child Support Responsibility Act of
1994 shall be considered amounts collected by the State
as child support pursuant to a plan approved under this
part.’’.
SEC. 7. WORKERS’ COMPENSATION BENEFITS SUBJECT TO
GARNISHMENT.
Section 462(f) of the Social Security Act (42 U.S.C.
662(f)) is amended—
(1) by striking ‘‘or’’ at the end of paragraph
(1);
(2) by striking the period at the end of para-
graph (2) and inserting ‘‘, or’’; and
(3) by adding at the end the following:
‘‘(3) workers’ compensation benefits.’’.
SEC. 8. LIENS ON CERTIFICATES OF VEHICLE TITLE.
Section 466(a) (42 U.S.C. 666(a)), as amended by
section 2(b) of this Act, is amended by inserting after
paragraph (12) the following:
‘‘(13) Procedures under which the State shall
systematically place liens on vehicle titles for child
support arrearages determined under a court order
or an order of an administrative process established
under State law, using a method for updating the
value of the lien on a regular basis or allowing for
an expedited inquiry to and response from a govern-
mental payee for proof of the amount of arrears,
with an expedited method for the titleholder or the
individual owing the arrearage to contest the arrear-
age or to request a release upon fulfilling the sup-
port obligation, and under which such a lien has
precedence over all other encumbrances on a vehicle
title other than a purchase money security interest,
and that the individual owed the arrearage may exe-
cute on, seize, and sell the property in accordance
with State law.’’.
SEC. 9. ATTACHMENT OF BANK ACCOUNTS.
Section 466(a) of the Social Security Act (42 U.S.C.
666(a)), as amended by sections 2(b) and 8 of this Act,
is amended by inserting after paragraph (13) the follow-
ing:
‘‘(14) Procedures under which—
‘‘(A) amounts on deposit in a bank account
may be seized to satisfy child support arrear-
ages determined under a court order or an
order of an administrative process established
under State law, solely through an administra-
tive process, pending notice to and an expedited
opportunity to be heard from the account hold-
er or holders; and
‘‘(B) if the account holder or holders fail
to successfully challenge the seizure (as deter-
mined under State law), the bank may be re-
quired to pay from the account to the entity
with the right to collect the arrearage the lesser
of—
‘‘(i) the amount of the arrearage; or
‘‘(ii) the amount on deposit in the ac-
count.’’.
SEC. 10. SEIZURE OF LOTTERY WINNINGS, SETTLEMENTS,
PAYOUTS, AWARDS, AND BEQUESTS, AND
SALE OF FORFEITED PROPERTY, TO PAY
CHILD SUPPORT ARREARAGES.
Section 466(a) of the Social Security Act (42 U.S.C.
666(a)), as amended by sections 2(b), 8, and 9 of this
Act, is amended by inserting after paragraph (14) the fol-
lowing:
‘‘(15) Procedures, in addition to other income
withholding procedures, under which a lien is im-
posed against property with the following effect:
‘‘(A) The distributor of the winnings from
a State lottery or State-sanctioned or tribal-
sanctioned gambling house or casino shall—
‘‘(i) suspend payment of the winnings
from the person otherwise entitled to the
payment until an inquiry is made to and a
response is received from the State child
support enforcement agency as to whether
the person owes a child support arrearage;
and
‘‘(ii) if there is such an arrearage,
withhold from the payment the lesser of
the amount of the payment or the amount
of the arrearage, and pay the amount with-
held to the agency for distribution.
‘‘(B) The person required to make a pay-
ment under a policy of insurance or a settle-
ment of a claim made with respect to the policy
shall—
‘‘(i) suspend the payment until an in-
quiry is made to and a response received
from the agency as to whether the person
otherwise entitled to the payment owes a
child support arrearage; and
‘‘(ii) if there is such an arrearage,
withhold from the payment the lesser of
the amount of the payment or the amount
of the arrearage, and pay the amount with-
held to the agency for distribution.
‘‘(C) The payor of any amount pursuant to
an award, judgment, or settlement in any ac-
tion brought in Federal or State court shall—
‘‘(i) suspend the payment of the
amount until an inquiry is made to and a
response is received from the agency as to
whether the person otherwise entitled to
the payment owes a child support arrear-
age; and
‘‘(ii) if there is such an arrearage,
withhold from the payment the lesser of
the amount of the payment or the amount
of the arrearage, and pay the amount with-
held to the agency for distribution.
‘‘(D) If the State seizes property forfeited
to the State by an individual by reason of a
criminal conviction, the State shall—
‘‘(i) hold the property until an inquiry
is made to and a response is received from
the agency as to whether the individual
owes a child support arrearage; and
‘‘(ii) if there is such an arrearage, sell
the property and, after satisfying the
claims of all other private or public claim-
ants to the property and deducting from
the proceeds of the sale the attendant costs
(such as for towing, storage, and the sale),
pay the lesser of the remaining proceeds or
the amount of the arrearage directly to the
agency for distribution.
‘‘(E) Any person required to make a pay-
ment in respect of a decedent shall—
‘‘(i) suspend the payment until an in-
quiry is made to and a response received
from the agency as to whether the person
otherwise entitled to the payment owes a
child support arrearage; and
‘‘(ii) if there is such an arrearage,
withhold from the payment the lesser of
the amount of the payment or the amount
of the arrearage, and pay the amount with-
held to the agency for distribution.’’.
SEC. 11. USE OF ADMINISTRATIVE PROCESS TO IMPOSE
LIENS AGAINST AND SEIZE PROPERTY OF
PERSONS DELINQUENT IN CHILD SUPPORT
PAYMENTS.
Section 466(a)(4) of the Social Security Act (42
U.S.C. 666(a)) is amended to read as follows:
‘‘(4) Procedures under which administrative
processes are used to impose liens against and seize
property for amounts of overdue support owed by
noncustodial parents who reside or own property in
the State, in full compliance with all procedural due
process requirements of the State, and without the
need for a court order.’’.
SEC. 12. FRAUDULENT TRANSFER PURSUIT.
Section 466(a) of the Social Security Act (42 U.S.C.
666(a)), as amended by sections 2(b), 8, 9, and 10 of this
Act, is amended by inserting after paragraph (15) the fol-
lowing:
‘‘(16) Procedures requiring that, in any case re-
lated to child support, any transfer of property by
an individual who owes a child support arrearage
shall be presumed to be made with the intent to
avoid payment of the arrearage, and may be rebut-
ted by evidence to the contrary.’’.
SEC. 13. TECHNICAL CORRECTION TO ERISA DEFINITION
OF MEDICAL CHILD SUPPORT ORDER.
(a) IN GENERAL.—Section 609(a)(2)(B) of the Em-
ployee Retirement Income Security Act of 1974 (29
U.S.C. 1169(a)(2)(B)) is amended—
(1) by striking ‘‘issued by a court of competent
jurisdiction’’;
(2) by striking the period at the end of clause
(ii) and inserting a comma; and
(3) by adding, after and below clause (ii), the
following:
‘‘if such judgment, decree, or order (I) is issued
by a court of competent jurisdiction or (II) is
issued by an administrative adjudicator and has
the force and effect of law under applicable
State law.’’.
(b) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendments made by
this section shall take effect on the date of the en-
actment of this Act.
(2) PLAN AMENDMENTS NOT REQUIRED UNTIL
JANUARY 1, 1996.—Any amendment to a plan re-
quired to be made by an amendment made by this