II 113th CONGRESS 1st Session S. 508 IN THE SENATE OF THE UNITED STATES March 7, 2013 Mr. Menendez (for himself and Mr. Grassley ) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend part D of title IV of the Social Security Act to improve the enforcement, collection, and administration of child support payments, and for other purposes.

1. Short title This Act may be cited as the Strengthen and Vitalize Enforcement of Child Support (SAVE Child Support) Act . 2. Amendments to Social Security Act; References (a) Amendments to Social Security Act Except as otherwise specifically provided, wherever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the amendment or repeal shall be considered to be made to that section or other provision of the Social Security Act. (b) Secretary In this Act, the term Secretary means the Secretary of Health and Human Services. 3. Interstate and international child support payments (a) Requiring States To adopt the 2008 amendments to the Uniform Interstate Family Support Act (1) In general Section 466(f) (42 U.S.C. 666(f)) is amended to read as follows: (f) Uniform Interstate Family Support Act In order to satisfy section 454(20)(A), on and after January 1, 2016, each State must have in effect the Uniform Interstate Family Support Act, as approved by the American Bar Association on February 9, 1993, and as in effect on October 1, 2008, including any amendments officially adopted as of such date by the National Conference of Commissioners on Uniform State Laws. . (2) Effective date The amendments made by this subsection shall take effect on January 1, 2016. (b) Full faith and credit for child support orders Section 1738B of title 28, United States Code, is amended— (1) by striking subsection (d) and inserting the following: (d) Continuing, Exclusive Jurisdiction (1) In general Except as provided under paragraph (2), a court of a State that has made a child support order consistently with this section has continuing, exclusive jurisdiction to modify its order, if— (A) the order is the controlling order; and (B) the State— (i) is the child’s State or the residence of any individual contestant; or (ii) the contestants consent in a record or open court that the court may continue to exercise jurisdiction to modify its order. (2) Exception A court may not exercise its continuing, exclusive jurisdiction to modify the order if the court of another State, acting in accordance with subsections (e) and (f), has made a modification of the order. ; (2) in subsection (e), by striking paragraph (2) and inserting the following: (2) (A) the court of the other State no longer has continuing, exclusive jurisdiction of the child support order because that State no longer is the child’s State or the residence of any individual contestant and the parties have not consented in a record or open court that the court of the other State may continue to exercise jurisdiction to modify its order; or (B) each individual contestant has filed written consent with the State of continuing, exclusive jurisdiction for a court of another State with jurisdiction over at least 1 of the individual contestants or that is located in the child’s State to modify the order and assume continuing, exclusive jurisdiction over the order. ; and (3) in subsection (i), by inserting , unless the parties have consented in a record or open court that the court of the issuing State may continue to exercise jurisdiction to modify its order before the period. (c) Ensuring access to child support services for international child support cases (1) Secretary's authority to ensure compliance with multilateral child support convention (A) In general Section 452 ( 42 U.S.C. 652 ) is amended— (i) by redesignating the second subsection (l) (as added by section 7306 of Public Law 109–171) as subsection (m); and (ii) by adding at the end the following: (n) Secretary's authority To ensure compliance with multilateral child support convention Consistent with the national policy of the United States to fully comply with the obligations of any multilateral child support convention to which the United States is a party, the Secretary shall utilize Federal and, as appropriate, State enforcement mechanisms in furtherance of this policy and take such steps as may be necessary within the Secretary’s authority to ensure compliance with the United States treaty obligations under such convention in the event the Secretary determines that a State plan does not comply with such obligations. . (B) Conforming amendment Section 453(k)(3) ( 42 U.S.C. 653(k)(3) ) is amended by striking 452(l) and inserting 452(m) . (2) Access to the Federal Parent Locator Service Section 453(c) ( 42 U.S.C. 653(c) ) is amended— (A) in paragraph (3), by striking and at the end; (B) in paragraph (4), by striking the period at the end and inserting ; and ; and (C) by adding at the end the following: (5) an entity designated as a Central Authority for child support enforcement in a foreign reciprocating country or a foreign treaty country for purposes specified in section 459A(c)(2). . (3) State option to require individuals in foreign countries to apply through their country's appropriate central authority Section 454 ( 42 U.S.C. 654 ) is amended— (A) in paragraph (4)(A)(ii), by inserting (except that, if the individual applying for such services resides in a foreign reciprocating country or foreign treaty country, the State may opt to require such individual to request such services through the Central Authority for child support enforcement in the foreign reciprocating country or the foreign treaty country, and if the individual resides in a foreign country that is not a foreign reciprocating country or a foreign treaty country, a State may accept the application) after the child ; and (B) in paragraph (32)— (i) in subparagraph (A), by inserting , a foreign treaty country, after foreign reciprocating country ; and (ii) in subparagraph (C), by striking or foreign obligee and inserting , a foreign treaty country, or foreign individual after foreign reciprocating country . (4) Amendments to international support enforcement provisions Section 459A (42 U.S.C. 659a) is amended— (A) in subsection (c)— (i) in the matter preceding paragraph (1), by striking foreign countries that are the subject of a declaration under this section and inserting foreign reciprocating countries or foreign treaty countries ; and (ii) in paragraph (2), by inserting and foreign treaty countries after foreign reciprocating countries ; (B) in subsection (d), by striking the subject of a declaration pursuant to subsection (a) and inserting foreign reciprocating countries or foreign treaty countries ; and (C) by adding at the end the following: (e) References In this part: (1) Foreign reciprocating country The term foreign reciprocating country means a foreign country (or political subdivision thereof) with respect to which the Secretary has made a declaration pursuant to subsection (a). (2) Foreign treaty country The term foreign treaty country means a foreign country for which the 2007 Family Maintenance Convention is in force. (3) 2007 Family Maintenance Convention The term 2007 Family Maintenance Convention means the Hague Convention of 23 November 2007 on the International Recovery of Child Support and Other Forms of Family Maintenance. . (5) Collection of overdue support from Federal tax refunds Section 464(a)(2)(A) (42 U.S.C. 664(a)(2)(A)) is amended by striking under section 454(4)(A)(ii) and inserting under paragraph (4)(A)(ii) or (32) of section 454 . 4. Centralized and accessible lien registry (a) In general Section 466(a)(4) (42 U.S.C. 666(a)(4)) is amended to read as follows: (4) Liens Procedures under which— (A) liens arise by operation of law against real and personal property for amounts of overdue support owed by a noncustodial parent who resides or owns property in the State; (B) all liens described in subparagraph (A) are reported to a centralized lien registry that is maintained in accordance with section 4(b) of the Strengthen and Vitalize Enforcement of Child Support (SAVE Child Support) Act ; (C) the State accords full faith and credit to liens described in subparagraph (A) arising in another State, when the State agency, party, or other entity seeking to enforce such a lien registers the lien with the Registry and does not require judicial notice or a hearing prior to the enforcement of such liens; and (D) the State ensures that any real or personal property with a lien described in subparagraphs (A) or (C) that has been reported to the centralized lien registry cannot be transferred, sold, or otherwise disposed of, any insurance claim described in section 4(b)(1)(C) of the Strengthen and Vitalize Enforcement of Child Support (SAVE Child Support) Act cannot be paid, any estate cannot be settled, and any lump sum pension payment cannot be made until a search of the registry has been made in accordance with section 4(b) of such Act. . (b) Centralized lien registry (1) In general For purposes of section 466(a)(4) of the Social Security Act, the State shall establish and maintain a centralized lien registry (referred to in this subsection as a Registry ), or otherwise ensure that it has access to a Registry, that satisfies the requirements of this subsection and is accessible by the following individuals and entities, all of whom are required to share information with the Registry (subject to such requirements as the Secretary determines appropriate) and search the Registry prior to making any sale or distribution of property or funds: (A) Any individual against whom a lien against real or personal property for overdue support is placed. (B) Any individual or entity transferring real property or registered personal property. (C) Any insurer, as defined in section 466(a)(20)(B)(i) of such Act, paying an insurance claim consisting of a non-recurring payment of $2,000 or more. (D) Any State or entity making a payment related to unemployment compensation benefits, workers' compensation, or proceeds from a State lottery. (E) Any State or entity issuing driver's licenses, professional and occupational licenses. (F) Any individual or entity making a lump sum pension payment. (G) The executor of any estate. (H) Any other individual or entity specified by the State or the Secretary. (2) Operational date The Secretary shall work in coordination with States and other appropriate stakeholders to ensure that, not later than January 1, 2015, each State has established or has access to a Registry. (3) Registry access The Secretary may designate additional entities, including Federal, State, and local officials, that may search and share information with the Registry, subject to such conditions and requirements as the Secretary determines appropriate. (4) Accessing the information contained in the registry (A) In general The Registry shall allow individuals and entities described in paragraph (1) to search the Registry through a data match process using an individual’s name, Social Security number, taxpayer identification number, or other accurate and verifiable personal identification number. (B) Data match If a search of the Registry results in a match that a lien against real or personal property for overdue support exists with respect to a debtor, the following information, at a minimum, shall be made available to the individual or entity initiating the search: (i) The amount of the lien. (ii) The contact information for the State agency responsible for administering the State plan under part D of title IV of the Social Security Act. (iii) The process for paying the underlying debt up to the amount of the lien. (iv) The process for discharging the lien. (C) No data match If a search of the Registry results in no match, the Registry shall permit the individual or entity initiating the search to print a certificate or letter stating that, as of the time and date of the search, there was no outstanding lien against real or personal property for overdue support reported in the Registry with respect to the individual that was the subject of the search. (5) Discharge of liens The State shall have procedures under which— (A) if a search of the Registry reveals a lien against real or personal property for overdue support, any proceeds from the sale, transfer or distribution shall be applied to satisfy the lien before the lien may be discharged; and (B) upon satisfaction of such a lien, the lien is expeditiously discharged and recorded as such in the Registry in a timely manner. (6) Notice and challenge of data in the registry The State shall have procedures for providing adequate notice to an individual with respect to whom a lien against real or personal property for overdue support is included in the Registry and for allowing an individual to challenge the existence of, or amount of, any such lien reported to the Registry. (c) Financial institutions Section 466(a)(17)(A) ( 42 U.S.C. 666(a)(17)(A) ) is amended— (1) in clause (i), by striking and at the end; (2) by redesignating clause (ii) as clause (iii); and (3) by inserting after clause (i) the following new clause: (ii) to ensure that any information provided by such financial institutions for purposes of the data match system is matched against the records in the centralized lien registry described in paragraph (4); and . 5. Requiring States to compare information maintained by insurers Subsection (m) of section 452 (42 U.S.C. 652), as redesignated by section 3(c)(1)(A)(i) of this Act, is amended in paragraph (1), in the matter preceding subparagraph (A), by striking may and inserting shall . 6. Data matching and registry of payments made on property and casualty insurance claims (a) In general Section 466(a) ( 42 U.S.C. 666(a) ) is amended by inserting after paragraph (19) the following new paragraph: (20) Registry of payments made on property and casualty insurance claims (A) Data matching (i) In general Procedures under which— (I) the State— (aa) subject to subclause (ii), enters into an agreement with or has entered an existing consortium of States and insurers for the purpose of matching overdue child support cases with a registry of payments made on property and casualty insurance claims; (bb) participates in a program established by the Secretary for such purpose; or (cc) if, on October 1, 2013, the State has not entered into an agreement described in item (aa) or does not participate in a program described in item (bb), the State, not later than January 1, 2015, enters into an agreement with insurers doing business in the State to register such payments with a registry established and maintained by the State for only such purpose; and (II) not later than January 1, 2016, at least 90 percent of the payments made on property and casualty claims within the State are matched against the State case registry and any overdue child support orders or liens recorded in the registry maintained by the State pursuant to section 4 of the Strengthen and Vitalize Enforcement of Child Support Act . (ii) Existing consortiums A State shall be deemed to have satisfied the requirements of clause (i)(I)(aa) if, prior to the date of enactment of the Strengthen and Vitalize Enforcement of Child Support (SAVE Child Support) Act , the State entered into an agreement that established a consortium described in such clause. (B) Definitions For purposes of this paragraph— (i) Insurer The term insurer means any public or private entity that is the primary provider of property or casualty insurance, including any self-insured employer or government agency. (ii) Payments made on property and casualty insurance claims The term payments made on property and casualty insurance claims means any payment greater than $2,000 that is paid by an insurer on a property or casualty claim under a liability insurance policy or the liability coverage portion of a multi-peril policy, excluding any payment to a health care provider for any injuries related to such claim. . (b) Conforming amendments Section 454A(f) ( 42 U.S.C. 654a(f) ) is amended by adding at the end the following: (6) Registry of payments made on property and casualty insurance claims Exchanging information with a registry of payments made on property and casualty insurance claims that satisfies the requirements of section 466(a)(20) for the purposes specified in that section. . 7. Strengthened passport denial procedures (a) In general Section 454(31) (42 U.S.C. 654(31)) is amended— (1) in subparagraph (A), by striking and after the semicolon; (2) in subparagraph (B), by inserting and after the semicolon; and (3) by adding at the end the following new subparagraph: (C) in the case of an individual with respect to whom such a certification has been furnished, the State agency does not notify the Secretary that the certification is rescinded and any action taken by the Secretary under section 452(k)(2) on the basis of such certification may not be revoked or reversed, before all arrearages of child support owed by the individual are paid in full, or the individual owing such arrearages agrees to pay all such arrearages in full according to a payment plan approved by the State agency; . (b) Hardship exception For purposes of any action taken against an individual under section 452(k) of the Social Security Act ( 42 U.S.C. 652(k) ), the Secretary may employ procedures available under title IV of such Act, or develop additional procedures, to ensure that such action does not result in undue harm to the ability of such individual to maintain their employment or livelihood. 8. Expedited process to withhold or suspend licenses for nonpayment Section 466(a)(16) ( 42 U.S.C. 666(a)(16) ) is amended— (1) by striking Procedures under which and inserting the following: (A) In general Procedures under which ; and (2) by adding at the end the following: (B) Data matches with state licensing authorities Procedures under which— (i) the State agency, in coordination with any State agencies that issue licenses or permits described in subparagraph (A), develops and operates a system, using automated data exchanges to the maximum extent feasible, in which— (I) each State agency that issues licenses or permits described in subparagraph (A) is required to check with the State agency and search the centralized lien registry described in paragraph (4) before issuing the permit or license to ensure that the individual applying for a license or permit is not a noncustodial parent who owes overdue child support or who has failed, after receiving appropriate notice, to comply with a subpoena or warrant relating to paternity or child support proceedings, as identified by the State agency; and (II) each State agency that issues licenses or permits described in subparagraph (A) is required to check with the State agency and search the centralized lien registry described in paragraph (4) at least once each calendar quarter for the name of each noncustodial parent who holds a license or permit from the issuing agency and who owes overdue child support or who has failed, after receiving appropriate notice, to comply with a subpoena or warrant relating to paternity or child support proceedings; and (ii) any State license or permit described in subparagraph (A) that is issued to an individual who has been determined to owe overdue support or who has failed, after receiving appropriate notice, to comply with a subpoena or warrant relating to paternity or child support proceedings is revoked, withheld, or suspended until the State agency certifies that the individual no longer owes overdue child support or has entered into a payment plan under State law to satisfy the child support debt, or has complied with the subpoena or warrant. (C) Hardship Exception Procedures under which the State agency provides an individual described in subparagraph (A) with an opportunity to demonstrate, prior to any withholding, suspension, restriction on the use of, or revocation of a permit or license becoming effective, that such action would result in undue harm to the ability of such individual to maintain their employment or livelihood. (D) Liability The head of any State agency that issues licenses or permits shall not be liable to any individual for any action taken in good faith with respect to a license or permit that is required under this paragraph. . 9. Coordination with corrections agencies and the United States Marshals Service (a) In general Section 466(c)(1) (42 U.S.C. 666(c)(1)) is amended by inserting after subparagraph (H) the following: (I) Coordination with corrections agencies (i) In general For the purpose of increasing coordination between the State agency and corrections agencies, to develop and operate, in coordination with corrections agencies within the State, a data match system, using automated data exchanges to the extent feasible, for the names of any incoming or incarcerated individuals in corrections facilities who have child support orders. (ii) Ensuring compliance from incarcerated noncustodial parents The State agency shall work with corrections facilities to establish programs to educate and assist incarcerated noncustodial parents to manage and fulfill their child support obligations. (iii) Ensuring cooperation with State parole boards The State agency shall ensure that information contained in the centralized lien registry described in subsection (a)(4) is provided to the State parole board. (iv) Corrections facilities defined For purposes of this section, the term corrections facility means any prison, jail, or other secure facility managed and operated, directly or under contract, by any municipality, county, State or the Federal Government in which offenders are incarcerated. Such term includes a halfway house. . (b) United States Marshals Service (1) In general The Attorney General may use the resources of the Federal law enforcement agencies of the Department of Justice, including the United States Marshals Service, to locate and apprehend persons who violate any State law or local ordinance regarding enforcement of child support orders. (2) Funding There are authorized to be appropriated such sums as may be necessary to carry out this subsection. 10. Preventing deceptive and harassing practices of private child support collection agencies Section 803 of the Consumer Credit Protection Act ( 15 U.S.C. 1692a ) is amended— (1) in paragraph (5)— (A) by inserting either after arising ; and (B) by inserting , or arising from a child support order after reduced to judgment ; and (2) in paragraph (6)— (A) in subparagraph (E), by striking and after the semicolon; (B) in subparagraph (F), by striking the period at the end and inserting ; and ; and (C) by inserting at the end the following new subparagraph: (G) any private collection agency or firm that is licensed by a State to collect support obligations under the State plan for child and spousal support under section 454 of the Social Security Act. . 11. Noncustodial parents' access to and visitation of their children Section 454(15) ( 42 U.S.C. 654(15) ) is amended— (1) in subparagraph (A), by striking and after the semicolon; (2) in subparagraph (B), by adding and after the semicolon; and (3) by adding at the end the following: (C) a process for including in the annual reviews and reports required under subparagraph (A) information, in such form and manner as the Secretary shall require, regarding the policies and practices implemented by the State or which the State plans to implement to facilitate access to and visitation of children by noncustodial parents; . 12. Report on Federal prosecution for failure to pay child support obligations Not later than January 1, 2015, and annually thereafter, the Attorney General shall prepare and submit a report to Congress that provides information regarding the number of individuals prosecuted for violating section 228 of title 18, United States Code. 13. Child support fees Section 454(6)(B) (42 U.S.C. 654(6)(B)) is amended— (1) in clause (i), by striking paid by the individual applying for such services, or recovered from the absent parent, or and inserting recovered from the absent parent or ; and (2) in clause (ii), by striking paid by the individual applying for the services, . 14. Effective date (a) In general Except as otherwise provided in this Act, and subject to subsection (b), the amendments made by this Act take effect on January 1, 2015. (b) Delay Permitted if State Legislation Required In the case of a State plan approved under section 454 of the Social Security Act which requires State legislation (other than legislation appropriating funds) in order for the plan to meet the additional requirements imposed by the amendments made by this Act, the State plan shall not be regarded as failing to comply with the additional requirements solely on the basis of the failure of the plan to meet the additional requirements before the first day of the first calendar quarter beginning after the close of the first regular session of the State legislature that begins after the date of enactment of this Act. For purposes of the previous sentence, in the case of a State that has a 2-year legislative session, each year of such session shall be deemed to be a separate regular session of the State legislature.