SEC. 2. STATES REQUIRED TO ESTABLISH PROCEDURES TO 
ENSURE THAT INTEREST ACCRUES ON CHILD 
SUPPORT PAYMENTS WHICH ARE IN AR-
REARS. 
(a) IN GENERAL.—Section 466(a)(8) of the Social 
Security Act (42 U.S.C. 666(a)(8)) is amended by adding 
at the end the following: 
‘‘(C) Procedures under which any child 
support order issued or modified in the State 
on or after the effective date of this subpara-
graph shall provide for the payment of interest 
on any payment required by the order which is 
in arrears.’’. 
(b) 
PENALTY
FOR
NONCOMPLIANCE.—Section 
409(a)(7)(B)(ii) of such Act (42 U.S.C. 609(a)(7)(B)(ii)) 
is amended by inserting ‘‘, except that the percentage that 
would otherwise apply under this clause shall be increased 
by 5 percentage points if the State is not in compliance 
with section 466(a)(8)(C) for the fiscal year’’ before the 
period. 
SEC. 3. STATES REQUIRED TO USE CHILD SUPPORT LATE 
PAYMENT FEES IN CHILD SUPPORT EN-
FORCEMENT PROGRAM. 
Section 454(21) of the Social Security Act (42 U.S.C. 
654(21)) is amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (A); 
(2) by adding ‘‘and’’ at the end of subpara-
graph (B); and 
(3) by adding at the end the following: 
‘‘(C) provide that any fee collected pursu-
ant to this paragraph shall be expended to 
carry out the State plan approved under this 
part;’’. 
SEC. 4. REPORTS TO CONGRESS ON COLLECTION OF CHILD 
SUPPORT ARREARAGES AND OF INTEREST 
ON CHILD SUPPORT OBLIGATIONS. 
Section 454 of the Social Security Act (42 U.S.C. 
654) is amended— 
(1) by striking ‘‘and’’ at the end of paragraph 
(32); 
(2) by striking the period at the end of para-
graph (33) and inserting ‘‘; and’’; and 
(3) by inserting after paragraph (33) the fol-
lowing: 
‘‘(34) provide that the State shall submit annu-
ally to the Committee on Ways and Means of the 
House of Representatives and the Committee on Fi-
nance of the Senate a written report which specifies 
the total amount of child support arrearages and the
total amount of interest on child support obligations 
collected by the State during the year covered by the 
report.’’. 
SEC. 5. EFFECTIVE DATE. 
(a) IN GENERAL.—Except as provided in subsection 
(b), the amendments made by this Act shall take effect 
at the end of the 1-year period that begins with the date 
of the enactment of this Act, and shall apply to payments 
under parts A and D of title IV of the Social Security 
Act for calendar quarters beginning after the 1-year pe-
riod. 
(b) DELAY PERMITTED IF STATE LEGISLATION RE-
QUIRED.—If the Secretary of Health and Human Services 
determines that State legislation (other than legislation 
appropriating funds) is required in order for a State plan 
under section 454 of the Social Security Act to meet the 
additional requirements imposed by the amendments made 
by this Act, the plan shall not be regarded as failing to 
meet any of the additional requirements before the 1st day 
of the 1st calendar quarter beginning after the first reg-
ular session of the State legislature that begins after the 
1-year period described in subsection (a). If the State has 
a 2-year legislative session, each year of the session is
deemed to be a separate regular session of the State legis-
lature for purposes of this subsection. 
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