589
tunity to review, correct, and contest such 
information; 
(ii) a low-income family is given the 
option to present the same documentation 
to establish eligibility for various low-in-
come family with children support pro-
grams; and 
(iii) verification of the documentation 
presented under clause (ii) is shared 
among agencies with responsibility for the 
administration of low-income family with 
children support programs. 
(G) 
JURISDICTION-WIDE
IMPLEMENTA-
TION.—
(i) IN GENERAL.—A grant awarded to 
a State or county under subsection (c)(1) 
shall be used for activities throughout the 
jurisdiction. 
(ii) EXCEPTION.—A State or county 
awarded a grant under subsection (c)(1) 
may use grant funds to develop one-stop 
service centers and telephone, mail, fac-
simile, Internet, or electronic mail applica-
tion and renewal procedures for low-income 
family with children support programs
590
without regard to the requirements of 
clause (i). 
(H) SUPPLEMENT NOT SUPPLANT.—Funds 
provided to a State or county under a grant 
awarded under subsection (c)(1) shall be used 
to supplement and not supplant other State or 
county public funds expended to provide sup-
port services for low-income families. 
(2) NONPROFITS
AND
LOCALITIES.—A grant 
awarded to a nonprofit or locality under subsection 
(c)(2) shall be used to—
(A) develop one-stop service centers for 
low-income family with children support pro-
grams in cooperation with States and counties; 
and 
(B) provide information about and refer-
rals to low-income family with children support 
programs through the dissemination of mate-
rials at strategic locations, including schools, 
clinics, and shopping locations. 
(f) APPLICATION.—
(1) IN GENERAL.—Each applicant desiring a 
grant under paragraph (1) or (2) of subsection (c) 
shall submit an application to the Secretary at such
591
time, in such manner, and accompanied by such in-
formation as the Secretary may reasonably require. 
(2) STATES AND COUNTIES.—
(A) NON-FEDERAL SHARE.—Each State or 
county applicant shall provide assurances that 
the applicant will pay the non-Federal share of 
the activities for which a grant is sought. 
(B) CERTIFICATION PERIODS.—
(i) IN GENERAL.—In order to receive 
a grant under subsection (c)(1), each State 
or county applicant shall provide assur-
ances that the applicant will establish cer-
tification periods of at least 1 year for 
TANF and food stamps. 
(ii) 
EXCEPTION.—The 
certification 
period under clause (i) may be extended to 
2 years for households in which all mem-
bers of the household are elderly or dis-
abled. 
(C) PARTNERSHIPS.—Each State or coun-
ty applicant shall submit a memorandum of un-
derstanding demonstrating that the applicant 
has entered into a partnership to coordinate its 
efforts under the grant with the efforts of other 
State and county agencies that have responsi-
592
bility for providing low-income families with as-
sistance or benefits. 
(g) DUTIES OF THE SECRETARY.—
(1) SURVEY FORM.—The Secretary, in coopera-
tion with other relevant agencies, shall develop a 
customer survey form to determine whether low-in-
come families—
(A) encounter any impediments in applying 
for or renewing their participation in low-in-
come family with children support programs; 
and 
(B) are unaware of low-income family with 
children support programs for which they are 
eligible. 
(2) REPORTS.—
(A) ANNUAL REPORTS.—Not later than 1 
year after the date of enactment of this Act, 
and annually thereafter, the Secretary shall 
submit a report to Congress describing the uses 
of grant funds awarded under this section. 
(B) RESULTS OF TRACKING SYSTEMS AND 
SURVEYS.—The Secretary shall submit a report 
to Congress detailing the results of the tracking 
systems implemented and customer surveys car-
ried out by States and counties under sub-
593
section (e) as the information becomes avail-
able. 
(h) MISCELLANEOUS.—
(1) MATCHING FUNDS.—
(A) IN
GENERAL.—Matching funds re-
quired from a State or county awarded a grant 
under subsection (c)(1) may—
(i) include in-kind services and ex-
penditures by municipalities and private 
entities; and 
(ii) be considered a qualified State ex-
penditure for purposes of determining 
whether the State has satisfied the mainte-
nance of effort requirements of the tem-
porary assistance for needy families pro-
gram under section 409(a)(7) of the Social 
Security Act (42 U.S.C. 609(a)(7)). 
(B) CONFORMING
AMENDMENT.—Section 
409(a)(7)(B)(iv) of the Social Security Act (42 
U.S.C. 609(a)(7)(B)(iv)) is amended by striking 
‘‘title.’’ and inserting ‘‘title, and also includes 
State funds which are expended as a condition 
of receiving Federal funds under a grant made 
under section 5001 of the Leave No Child Be-
hind Act of 2003.’’.
594
(2) LIMITATION ON EXPENDITURES.—
(A) IN GENERAL.—Subject to paragraph 
3—
(i) not more than 20 percent of a 
grant awarded under subsection (c) shall 
be expended on customer surveys or track-
ing systems; and 
(ii) except as provided in subpara-
graph (B), not more than 15 percent of a 
grant awarded under subsection (c) shall 
be expended on administrative costs. 
(B) AUTOMATION EXCEPTION.—The limi-
tation on administrative expenditures under 
subparagraph (A)(ii) shall not apply to expendi-
tures for the acquisition, implementation, or 
maintenance of information technology, comput-
erization, or other automated data processing to 
accomplish the purposes of a grant awarded 
under subsection (c). 
(3) REVERSION OF FUNDS.—Any funds not ex-
pended by a grantee within 2 years after awarded a 
grant shall be available for redistribution among 
other grantees in such manner and amount as the 
Secretary may determine, unless the Secretary ex-
595
tends by regulation the 2-year time period to expend 
funds. 
(4) 
NONAPPORTIONMENT.—Notwithstanding 
any other provision of law, a State, county, locality, 
or nonprofit awarded a grant under subsection (c) is 
not required to apportion the costs of providing in-
formation about low-income family with children 
support programs among all low-income family with 
children support programs. 
(5) ADMINISTRATIVE
COSTS
OF
THE
SEC-
RETARY.—Not more than 5 percent of the funds ap-
propriated to carry out this section shall be ex-
pended on administrative costs of the Secretary. 
(i) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out this section 
$500,000,000 for the period of fiscal years 2004 through 
2008. 
Subtitle B—Support From Both 
Parents 
CHAPTER 1—CHILD SUPPORT 
DISTRIBUTION 
SEC. 5101. SHORT TITLE. 
This subtitle may be cited as the ‘‘Child Support Dis-
tribution Act’’.
596
Subchapter A—Distribution of Child Support 
SEC. 5111. DISTRIBUTION OF CHILD SUPPORT COLLECTED 
BY STATES ON BEHALF OF CHILDREN RE-
CEIVING CERTAIN WELFARE BENEFITS. 
(a) MODIFICATION OF RULE REQUIRING ASSIGN-
MENT OF SUPPORT RIGHTS AS A CONDITION OF RECEIV-
ING TANF.—Section 408(a)(3) of the Social Security Act 
(42 U.S.C. 608(a)(3)) is amended to read as follows: 
‘‘(3) NO ASSISTANCE FOR FAMILIES NOT AS-
SIGNING
CERTAIN
SUPPORT
RIGHTS
TO
THE 
STATE.—A State to which a grant is made under 
section 403 shall require, as a condition of providing 
assistance to a family under the State program 
funded under this part, that a member of the family 
assign to the State any rights the family member 
may have (on behalf of the family member or of any 
other person for whom the family member has ap-
plied for or is receiving such assistance) to support 
from any other person, not exceeding the total 
amount of assistance so provided to the family, 
which accrues during the period that the family re-
ceives assistance under the program.’’. 
(b) INCREASING CHILD SUPPORT PAYMENTS
TO 
FAMILIES AND SIMPLIFYING CHILD SUPPORT DISTRIBU-
TION RULES.—
597
(1) DISTRIBUTION RULES.—
(A) IN GENERAL.—Section 457(a) of such 
Act (42 U.S.C. 657(a)) is amended to read as 
follows: 
‘‘(a) IN GENERAL.—Subject to subsections (e) and 
(f), the amounts collected on behalf of a family as support 
by a State pursuant to a plan approved under this part 
shall be distributed as follows: 
‘‘(1) FAMILIES RECEIVING ASSISTANCE.—In the 
case of a family receiving assistance from the State, 
the State shall—
‘‘(A) pay to the Federal Government the 
Federal share of the amount collected, subject 
to paragraph (3)(A); 
‘‘(B) retain, or pay to the family, the State 
share of the amount collected, subject to para-
graph (3)(B); and 
‘‘(C) pay to the family any remaining 
amount. 
‘‘(2) FAMILIES THAT FORMERLY RECEIVED AS-
SISTANCE.—In the case of a family that formerly re-
ceived assistance from the State: 
‘‘(A) CURRENT SUPPORT.—To the extent 
that the amount collected does not exceed the
598
current support amount, the State shall pay the 
amount to the family. 
‘‘(B) ARREARAGES.—To the extent that 
the amount collected exceeds the current sup-
port amount, the State—
‘‘(i) shall first pay to the family the 
excess amount, to the extent necessary to 
satisfy support arrearages not assigned 
pursuant to section 408(a)(3); 
‘‘(ii) if the amount collected exceeds 
the amount required to be paid to the fam-
ily under clause (i), shall—
‘‘(I) pay to the Federal Govern-
ment, the Federal share of the excess 
amount described in this clause, sub-
ject to paragraph (3)(A); and 
‘‘(II) retain, or pay to the family, 
the State share of the excess amount 
described in this clause, subject to 
paragraph (3)(B); and 
‘‘(iii) shall pay to the family any re-
maining amount. 
‘‘(3) LIMITATIONS.—
‘‘(A) FEDERAL
REIMBURSEMENTS.—The 
total of the amounts paid by the State to the
599
Federal Government under paragraphs (1) and 
(2) of this subsection with respect to a family 
shall not exceed the Federal share of the 
amount assigned with respect to the family pur-
suant to section 408(a)(3). 
‘‘(B) 
STATE
REIMBURSEMENTS.—The 
total of the amounts retained by the State 
under paragraphs (1) and (2) of this subsection 
with respect to a family shall not exceed the 
State share of the amount assigned with respect 
to the family pursuant to section 408(a)(3). 
‘‘(4) FAMILIES THAT NEVER RECEIVED ASSIST-
ANCE.—In the case of any other family, the State 
shall pay the amount collected to the family. 
‘‘(5) 
FAMILIES
UNDER
CERTAIN
AGREE-
MENTS.—Notwithstanding paragraphs (1) through 
(4), in the case of an amount collected for a family 
in accordance with a cooperative agreement under 
section 454(33), the State shall distribute the 
amount collected pursuant to the terms of the agree-
ment. 
‘‘(6) STATE FINANCING OPTIONS.—To the ex-
tent that the State share of the amount payable to 
a family for a month pursuant to paragraph (2)(B) 
of this subsection exceeds the amount that the State
600
estimates (under procedures approved by the Sec-
retary) would have been payable to the family for 
the month pursuant to former section 457(a)(2) (as 
in effect for the State immediately before the date 
this subsection first applies to the State) if such 
former section had remained in effect, the State may 
elect to use the grant made to the State under sec-
tion 403(a) to pay the amount, or to have the pay-
ment considered a qualified State expenditure for 
purposes of section 409(a)(7), but not both. 
‘‘(7) STATE OPTION TO PASS THROUGH ADDI-
TIONAL SUPPORT WITH FEDERAL FINANCIAL PAR-
TICIPATION.—
‘‘(A) 
IN
GENERAL.—Notwithstanding 
paragraphs (1) and (2), a State shall not be re-
quired to pay to the Federal Government the 
Federal share of an amount collected on behalf 
of a family that is not a recipient of assistance 
under the State program funded under part A, 
to the extent that the State pays the amount to 
the family. 
‘‘(B) RECIPIENTS
OF
TANF
FOR
LESS 
THAN 5 YEARS.—
‘‘(i) IN
GENERAL.—Notwithstanding 
paragraphs (1) and (2), a State shall not
601
be required to pay to the Federal Govern-
ment the Federal share of an amount col-
lected on behalf of a family that is a recipi-
ent of assistance under the State program 
funded under part A and that has received 
the assistance for not more than 5 years 
after the date of enactment of this para-
graph, to the extent that—
‘‘(I) the State pays the amount 
to the family; and 
‘‘(II) subject to clause (ii), the 
amount is disregarded in determining 
the amount and type of the assistance 
provided to the family. 
‘‘(ii) LIMITATION.—Of the amount 
disregarded as described in clause (i)(II), 
the maximum amount that may be taken 
into account for purposes of clause (i) shall 
not exceed $400 per month, except that, in 
the case of a family that includes 2 or 
more children, the State may elect to in-
crease the maximum amount to not more 
than $600 per month.’’. 
(B) APPROVAL
OF
ESTIMATION
PROCE-
DURES.—Not later than October 1, 2003, the
602
Secretary of Health and Human Services, in 
consultation with the States (as defined for 
purposes of part D of title IV of the Social Se-
curity Act), shall establish the procedures to be 
used to make the estimate described in section 
457(a)(6) of such Act. 
(2) CURRENT
SUPPORT
AMOUNT
DEFINED.—
Section 457(c) of such Act (42 U.S.C. 657(c)) is 
amended by adding at the end the following: 
‘‘(5) CURRENT SUPPORT AMOUNT.—The term 
‘current support amount’ means, with respect to 
amounts collected as support on behalf of a family, 
the amount designated as the monthly support obli-
gation of the noncustodial parent in the order re-
quiring the support.’’. 
(c) BAN ON RECOVERY OF MEDICAID COSTS FOR 
CERTAIN BIRTHS.—Section 454 of such 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:
603
‘‘(34) provide that the State shall not use the 
State program operated under this part to collect 
any amount owed to the State by reason of costs in-
curred under the State plan approved under title 
XIX for the birth of a child for whom support rights 
have been assigned pursuant to section 408(a)(3), 
471(a)(17), or 1912.’’. 
(d) STATE OPTION TO DISCONTINUE CERTAIN SUP-
PORT ASSIGNMENTS.—Section 457(b) of such Act (42 
U.S.C. 657(b)) is amended by striking ‘‘shall’’ and insert-
ing ‘‘may’’. 
(e) CONFORMING AMENDMENTS.—
(1) Section 409(a)(7)(B)(i)(I)(aa) of such Act 
(42 U.S.C. 609(a)(7)(B)(i)(I)(aa)) is amended by 
striking ‘‘457(a)(1)(B)’’ and inserting ‘‘457(a)(1)’’. 
(2) Section 404(a) of such Act (42 U.S.C. 
604(a)) is amended—
(A) by striking ‘‘or’’ at the end of para-
graph (1); 
(B) by striking the period at the end of 
paragraph (2) and inserting ‘‘; or’’; and 
(C) by adding at the end the following: 
‘‘(3) to fund payment of an amount pursuant to 
clause (i) or (ii) of section 457(a)(2)(B), but only to 
the extent that the State properly elects under sec-
604
tion 457(a)(6) to use the grant to fund the pay-
ment.’’. 
(3) Section 409(a)(7)(B)(i) of such Act (42 
U.S.C. 609(a)(7)(B)(i)) is amended by adding at the 
end the following: 
‘‘(V) 
PORTIONS
OF
CERTAIN 
CHILD
SUPPORT
PAYMENTS
COL-
LECTED ON BEHALF OF AND DISTRIB-
UTED TO FAMILIES NO LONGER RE-
CEIVING
ASSISTANCE.—Any amount 
paid by a State pursuant to clause (i) 
or (ii) of section 457(a)(2)(B), but 
only to the extent that the State prop-
erly elects under section 457(a)(6) to 
have the payment considered a quali-
fied State expenditure.’’. 
(f) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendments made by 
this section shall take effect on October 1, 2008, 
and shall apply to payments under parts A and D 
of title IV of the Social Security Act for calendar 
quarters beginning on or after such date, and with-
out regard to whether regulations to implement such 
amendments (in the case of State programs operated 
under such part D) are promulgated by such date.
605
(2) STATE OPTION TO ACCELERATE EFFECTIVE 
DATE.—In addition, a State may elect to have the 
amendments made by this section apply to the State 
and to amounts collected by the State, on and after 
such date as the State may select that is after the 
date of enactment of this Act and before October 1, 
2008. 
Subchapter B—Review and Adjustment of 
Child Support Orders 
SEC. 5116. MANDATORY REVIEW AND MODIFICATION OF 
CHILD SUPPORT ORDERS FOR TANF RECIPI-
ENTS. 
(a) 
REVIEW
EVERY
YEARS.—Section 
466(a)(10)(A)(i) of the Social Security Act (42 U.S.C. 
666(a)(10)(A)(i)) is amended in the matter preceding sub-
clause (I)—
(1) by striking ‘‘or,’’ and inserting ‘‘or’’; and 
(2) by striking ‘‘upon the request of the State 
agency under the State plan or of either parent,’’. 
(b) REVIEW UPON LEAVING TANF.—
(1) NOTICE
OF
CERTAIN
FAMILIES
LEAVING 
TANF.—Section 402(a) of such Act (42 U.S.C. 
602(a)) is amended by adding at the end the fol-
lowing:
606
‘‘(8) CERTIFICATION
THAT
THE
CHILD
SUP-
PORT ENFORCEMENT PROGRAM WILL BE PROVIDED 
NOTICE OF CERTAIN FAMILIES LEAVING TANF PRO-
GRAM.—A certification by the chief executive officer 
of the State that the State has established proce-
dures to ensure that the State agency administering 
the child support enforcement program under the 
State plan approved under part D will be provided 
notice of the impending discontinuation of assistance 
to an individual under the State program funded 
under this part if the individual has custody of a 
child whose other parent is alive and not living at 
home with the child.’’. 
(2) REVIEW.—Section 466(a)(10) of such Act 
(42 U.S.C. 666(a)(10)) is amended—
(A) in the paragraph heading, by striking 
‘‘UPON REQUEST’’; 
(B) in subparagraph (C), by striking ‘‘this 
paragraph’’ and inserting ‘‘subparagraph (A) or 
(B)’’; and 
(C) by adding at the end the following: 
‘‘(D) REVIEW UPON LEAVING TANF.—On 
receipt of a notice issued pursuant to section 
402(a)(8), the State child support enforcement 
agency shall—
607
‘‘(i) examine the case file involved; 
‘‘(ii) determine what actions (if any) 
are needed to locate any noncustodial par-
ent, establish paternity or a support order, 
or enforce a support order in the case; 
‘‘(iii) immediately take the actions; 
and 
‘‘(iv) if there is a support order in the 
case which the State has not reviewed dur-
ing the 1-year period ending with receipt 
of the notice, notwithstanding subpara-
graph (B), review and, if appropriate, ad-
just the order in accordance with subpara-
graph (A).’’. 
Subchapter C—Demonstrations of Expanded 
Information and Enforcement 
SEC. 5121. GUIDELINES FOR INVOLVEMENT OF PUBLIC 
NON-IV-D CHILD SUPPORT ENFORCEMENT 
AGENCIES IN CHILD SUPPORT ENFORCE-
MENT. 
(a) IN GENERAL.—Not later than October 1, 2004, 
the Secretary, in consultation with States, local govern-
ments, and individuals or companies knowledgeable about 
involving public non-IV-D child support enforcement agen-
cies in child support enforcement, shall develop rec-
608
ommendations which address the participation of public 
non-IV-D child support enforcement agencies in the estab-
lishment and enforcement of child support obligations. 
The matters addressed by the recommendations shall in-
clude substantive and procedural rules which should be 
followed with respect to privacy safeguards, data security, 
due process rights, administrative compatibility with Fed-
eral and State automated systems, eligibility requirements 
(such as registration, licensing, and posting of bonds) for 
access to information and use of enforcement mechanisms, 
recovery of costs by charging fees, penalties for violations 
of the rules, treatment of collections for purposes of sec-
tion 458 of such Act, and avoidance of duplication of ef-
fort. 
(b) DEFINITIONS.—In this title: 
(1) CHILD
SUPPORT.—The term ‘‘child sup-
port’’ has the meaning given in section 459(i)(2) of 
the Social Security Act. 
(2) PUBLIC
NON-IV-D
CHILD
SUPPORT
EN-
FORCEMENT AGENCY.—The term ‘‘public non-IV-D 
child support enforcement agency’’ means an agency, 
of a political subdivision of a State, which is prin-
cipally responsible for the operation of a child sup-
port registry or for the establishment or enforcement 
of an obligation to pay child support other than pur-
609
suant to the State plan approved under part D of 
title IV of such Act, or a clerk of court office of a 
political subdivision of a State. 
(3) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Health and Human Services. 
(4) STATE.—The term ‘‘State’’ shall have the 
meaning given in section 1101(a)(1) of the Social 
Security Act for purposes of part D of title IV of 
such Act. 
SEC. 5122. DEMONSTRATIONS INVOLVING ESTABLISHMENT 
AND ENFORCEMENT OF CHILD SUPPORT OB-
LIGATIONS BY PUBLIC NON-IV-D CHILD SUP-
PORT ENFORCEMENT AGENCIES. 
(a) PURPOSE.—The purpose of this section is to de-
termine the extent to which public non-IV-D child support 
enforcement agencies may contribute effectively to the es-
tablishment and enforcement of child support obligations. 
(b) APPLICATIONS.—
(1) CONSIDERATION.—The Secretary shall con-
sider all applications received from States desiring to 
conduct demonstration projects under this section. 
(2) PREFERENCES.—In considering which ap-
plications to approve under this section, the Sec-
retary shall give preference to applications submitted
610
by States that had a public non-IV-D child support 
enforcement agency as of January 1, 2003. 
(3) APPROVAL.—
(A) TIMING; LIMITATION ON NUMBER OF 
PROJECTS.—On July 1, 2005, the Secretary 
may approve not more than 10 applications for 
projects providing for the participation of a 
public non-IV-D child support enforcement 
agency in the establishment and enforcement of 
child support obligations, and, if the Secretary 
receives at least 5 such applications that meet 
such requirements as the Secretary may estab-
lish, shall approve not less than 5 such applica-
tions. 
(B) REQUIREMENTS.—The Secretary may 
not approve an application for a project un-
less—
(i) the applicant and the Secretary 
have entered into a written agreement 
which addresses at a minimum, privacy 
safeguards, data security, due process 
rights, automated systems, liability, over-
sight, and fees, and the applicant has 
made a commitment to conduct the project 
in accordance with the written agreement
611
and such other requirements as the Sec-
retary may establish; 
(ii) the project includes a research 
plan (but such plan shall not be required 
to use random assignment) that is focused 
on assessing the costs and benefits of the 
project; and 
(iii) the project appears likely to con-
tribute significantly to the achievement of 
the purpose of this title. 
(c) DEMONSTRATION AUTHORITY.—On approval of 
an application submitted by a State under this section—
(1) the State agency responsible for admin-
istering the State plan under part D of title IV of 
the Social Security Act may, subject to the privacy 
safeguards of section 454(26) of such Act, provide 
to any public non-IV-D child support enforcement 
agency participating in the demonstration project all 
information in the State Directory of New Hires and 
any information obtained through information com-
parisons under section 453(j)(3) of such Act about 
an individual with respect to whom the public non-
IV-D agency is seeking to establish or enforce a 
child support obligation, if the public non-IV-D 
agency meets such requirements as the State may
612
establish and has entered into an agreement with 
the State under which the public non-IV-D agency 
has made a binding commitment to carry out estab-
lishment and enforcement activities with respect to 
the child support obligation subject to the same data 
security, privacy protection, and due process require-
ments applicable to the State agency and in accord-
ance with procedures approved by the head of the 
State agency; 
(2) the State agency may charge and collect 
fees from any such public non-IV-D agency to re-
cover costs incurred by the State agency in providing 
information and services to the public non-IV-D 
agency under the demonstration project; 
(3) if a public non-IV-D child support enforce-
ment agency has agreed to collect past-due support 
(as defined in section 464(c) of such Act) owed by 
a named individual, and the State agency has sub-
mitted a notice to the Secretary of the Treasury 
pursuant to section 464 of such Act on behalf of the 
public non-IV-D agency, then the Secretary of the 
Treasury shall consider the State agency to have 
agreed to collect such support for purposes of such 
section 464, and the State agency may collect from 
the public non-IV-D agency any fee which the State
613
is required to pay for the cost of applying the offset 
procedure in the case; 
(4) for so long as a public non-IV-D child sup-
port enforcement agency is participating in the dem-
onstration project, the public non-IV-D agency shall 
be considered part of the State agency for purposes 
of section 469A of such Act; and 
(5) for so long as a public non-IV-D child sup-
port enforcement agency is participating in the dem-
onstration project, the public non-IV-D agency shall 
be considered part of the State agency for purposes 
of section 303(e) of such Act but only with respect 
to any child support obligation that the public non-
IV-D agency has agreed to collect. 
(d) WAIVER AUTHORITY.—The Secretary may waive 
or vary the applicability of any provision of sections 
303(e), 454(31), 464, 466(a)(7), 466(a)(17), and 469A 
of the Social Security Act to the extent necessary to enable 
the conduct of demonstration projects under this section, 
subject to the preservation of the data security, privacy 
protection, and due process requirements of part D of title 
IV of such Act. 
(e) FEDERAL AUDIT.—
(1) IN GENERAL.—The Comptroller General of 
the United States shall conduct an audit of the dem-
614
onstration projects conducted under this section for 
the purpose of examining and evaluating the manner 
in which information and enforcement tools are used 
by the public non-IV-D child support enforcement 
agencies participating in the projects. 
(2) REPORT TO CONGRESS.—
(A) IN GENERAL.—The Comptroller Gen-
eral of the United States shall submit to Con-
gress a report on the audit required by para-
graph (1). 
(B) TIMING.—The report required by sub-
paragraph (A) shall be so submitted not later 
than October 1, 2007. 
(f) SECRETARIAL REPORT TO CONGRESS.—
(1) IN GENERAL.—The Secretary shall submit 
to Congress a report on the demonstration projects 
conducted under this section, which shall include the 
results of any research or evaluation conducted pur-
suant to this title, and shall include policy rec-
ommendations regarding the establishment and en-
forcement of child support obligations by the agen-
cies involved. 
(2) TIMING.—The report required by paragraph 
(1) shall be submitted not later than October 1, 
2008.
615
SEC. 5123. GAO REPORT TO CONGRESS ON PRIVATE CHILD 
SUPPORT ENFORCEMENT AGENCIES. 
(a) IN GENERAL.—Not later than October 1, 2004, 
the Comptroller General of the United States shall submit 
to Congress a report on the activities of private child sup-
port enforcement agencies that shall be designed to help 
Congress determine whether the agencies are providing a 
needed service in a fair manner using accepted debt collec-
tion practices and at a reasonable fee. 
(b) MATTERS TO BE ADDRESSED.—Among the mat-
ters addressed by the report required by subsection (a) 
shall be the following: 
(1) The number of private child support en-
forcement agencies. 
(2) The types of debt collection activities con-
ducted by the private agencies. 
(3) The fees charged by the private agencies. 
(4) The methods used by the private agencies 
to collect fees from custodial parents. 
(5) The nature and degree of cooperation the 
private agencies receive from State agencies respon-
sible for administering State plans under part D of 
title IV of the Social Security Act. 
(6) The extent to which the conduct of the pri-
vate agencies is subject to Federal or State regula-
616
tion, and if so, the extent to which the regulations 
are effectively enforced. 
(7) The amount of child support owed but un-
collected and changes in this amount in recent years. 
(8) The average period of time required for the 
completion of successful enforcement actions yielding 
collections of past-due child support by both the 
child support enforcement programs operated pursu-
ant to State plans approved under part D of title IV 
of the Social Security Act and, to the extent known, 
by private child support enforcement agencies. 
(9) The types of Federal and State child sup-
port enforcement remedies and resources currently 
available to private child support enforcement agen-
cies, and the types of such remedies and resources 
now restricted to use by State agencies admin-
istering State plans referred to in paragraph (8). 
(c) PRIVATE CHILD SUPPORT ENFORCEMENT AGEN-
CY DEFINED.—In this section, the term ‘‘private child 
support enforcement agency’’ means a person or any other 
nonpublic entity which seeks to establish or enforce an ob-
ligation to pay child support (as defined in section 
459(i)(2) of the Social Security Act).
617
SEC. 5124. EFFECTIVE DATE. 
This title shall take effect on the date of enactment 
of this Act. 
Subchapter D—Expanded Enforcement 
SEC. 5126. DECREASE IN AMOUNT OF CHILD SUPPORT AR-
REARAGE TRIGGERING PASSPORT DENIAL. 
Section 452(k) of the Social Security Act (42 U.S.C. 
652(k)) is amended by striking ‘‘$5,000’’ and inserting 
‘‘$2,500’’. 
SEC. 5127. USE OF TAX REFUND INTERCEPT PROGRAM TO 
COLLECT PAST-DUE CHILD SUPPORT ON BE-
HALF OF CHILDREN WHO ARE NOT MINORS. 
Section 464 of the Social Security Act (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 pro-
vided in paragraph (2), as used in’’ and in-
serting ‘‘In’’; and 
(ii) by inserting ‘‘(whether or not a 
minor)’’ after ‘‘a child’’ each place it ap-
pears; and 
(B) by striking paragraphs (2) and (3).
618
SEC. 5128. GARNISHMENT OF COMPENSATION PAID TO VET-
ERANS FOR SERVICE-CONNECTED DISABIL-
ITIES IN ORDER TO ENFORCE CHILD SUP-
PORT OBLIGATIONS. 
Section 459(h) of the Social Security Act (42 U.S.C. 
659(h)) is amended—
(1) in paragraph (1)(A)(ii)(V), by striking all 
that follows ‘‘Armed Forces’’ and inserting a semi-
colon; and 
(2) by adding at the end the following: 
‘‘(3) LIMITATIONS
WITH
RESPECT
TO
COM-
PENSATION PAID TO VETERANS FOR SERVICE-CON-
NECTED DISABILITIES.—Notwithstanding any other 
provision of this section: 
‘‘(A) Compensation described in paragraph 
(1)(A)(ii)(V) shall not be subject to withholding 
pursuant to this section—
‘‘(i) for payment of alimony; or 
‘‘(ii) for payment of child support if 
the individual is fewer than 60 days in ar-
rears in payment of the support. 
‘‘(B) Not more than 50 percent of any 
payment of compensation described in para-
graph (1)(A)(ii)(V) may be withheld pursuant 
to this section.’’.
619
Subchapter E—Miscellaneous 
SEC. 5131. REPORT ON UNDISTRIBUTED CHILD SUPPORT 
PAYMENTS. 
Not later than 6 months after the date of enactment 
of this Act, the Secretary of Health and Human Services 
shall submit to the Committee on Ways and Means of the 
House of Representatives and the Committee on Finance 
of the Senate a report on the procedures that the States 
use generally to locate custodial parents for whom child 
support has been collected but not yet distributed due to 
a change in address. The report shall include an estimate 
of the total amount of such undistributed child support 
and the average length of time it takes for such child sup-
port to be distributed. 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. 5132. USE OF NEW HIRE INFORMATION TO ASSIST IN 
ADMINISTRATION OF UNEMPLOYMENT COM-
PENSATION PROGRAMS. 
(a) IN GENERAL.—Section 453(j) of the Social Secu-
rity Act (42 U.S.C. 653(j)) is amended by adding at the 
end the following:
620
‘‘(7) INFORMATION COMPARISONS AND DISCLO-
SURE TO ASSIST IN ADMINISTRATION OF UNEMPLOY-
MENT COMPENSATION PROGRAMS.—
‘‘(A) IN GENERAL.—If a State agency re-
sponsible for the administration of an unem-
ployment compensation program under Federal 
or State law transmits to the Secretary the 
name and social security account number of an 
individual, the Secretary shall, if the informa-
tion in the National Directory of New Hires in-
dicates that the individual may be employed, 
disclose to the State agency the name, address, 
and employer identification number of any pu-
tative employer of the individual, subject to this 
paragraph. 
‘‘(B) CONDITION
ON
DISCLOSURE.—The 
Secretary shall make a disclosure under sub-
paragraph (A) only to the extent that the Sec-
retary determines that the disclosure would not 
interfere with the effective operation of the pro-
gram under this part. 
‘‘(C) USE
OF
INFORMATION.—A State 
agency may use information provided under this 
paragraph only for purposes of administering a 
program referred to in subparagraph (A).’’.