Child Support Enforcement Amendments of 1984
PL 98-378 (H.R.4325), enacted 08/16/1984

PUBLIC LAW 98-378—AUG. 16, 1984 
98 STAT. 1305 
Public Law 98-378 
98th Congress 
An Act 
To amend part D of title IV of the Social Security Act to assure, through mandatory 
income withholding, incentive payments to States, and other improvements in the 
child support enforcement program, that all children in the United States who are 
in need of assistance in securing financial support from their parents will receive 
such assistance regardless of their circumstances, and for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
SHORT TITLE; T A B L E O F C O N T E N T S 
SECTION 1. This Act may be cited as the "Child Support Enforce-
ment Amendments of 1984". 
Aug. 16, 1984 
[H.R. 4325] 
Child Support 
Enforcement 
Amendments of 
1984. 
42 u s e 1305 
note. 
TABLE OF C O N T E N T S 
Sec. 1. Short title; table of contents. 
Sec. 2. Purpose of the program. 
Sec. 3. Improved child support enforcement through required State laws and 
procedures. 
Sec. 4. Federal matching of administrative costs. 
Sec. 5. Federal incentive payments. 
Sec. 6. 90-percent matching for automated management systems used in income 
withholding and other required procedures. 
Sec. 7. Continuation of support enforcement for AFDC recipients whose benefits are 
being terminated. 
Sec. 8. Special project grants to promote improvements in interstate enforcement. 
Sec. 9. Periodic review of effectiveness of State programs; modification of penalty. 
Sec. 10. Extension of section 1115 demonstration authority to child support enforce-
ment program. 
Sec. 11. Child support enforcement for certain children in foster care. 
Sec. 12. Enforcement with respect to both child and spousal support. 
Sec. 13. Modifications in content of annual report of the Secretary. 
Sec. 14. Requirement that availability of child support enforcement services be 
publicized. 
Sec. 15. State Commissions on child support. 
Sec. 16. Inclusion of medical support in child support orders. 
Sec. 17. Increased availability of Federal parent locator service to State agencies. 
Sec. 18. State guidelines for child support awards. 
Sec. 19. Availability of social security numbers for child support enforcement 
purposes. 
Sec. 20. Extension of eligibility under title XIX when support collection results in 
termination of AFDC eligibility. 
Sec. 21. Collection of past-due support from Federal tax refunds. 
Sec. 22. Wisconsin child support initiative. 
Sec. 23. Sense of the Congress that State and local governments should focus on the 
problems of child custody, child support, and related domestic issues. 
PURPOSE OF THE PROGRAM 
SEC. 2. Section 451 of the Social Security Act is amended by 42 use 651. 
striking out "and obtaining child and spousal support," and insert-
ing in lieu thereof "obtaining child and spousal support, and assur-
ing that assistance in obtaining support will be available under this 
98 STAT. 1306 
PUBLIC LAW 98-378—AUG. 16, 1984 
42 use 601. 
part to all children (whether or not eligible for aid under part A) for 
whom such assistance is requested,". 
IMPROVED CHILD SUPPORT ENFORCEMENT THROUGH REQUIRED STATE 
LAWS AND PROCEDURES 
42 use 654. 
SEC. 8. (a) Section 454 of the Social Security Act is amended— 
(1) by striking out "and" at the end of paragraph (18); 
(2) by striking out the period at the end of paragraph (19) and 
inserting in lieu thereof "; and"; and 
(3) by adding after paragraph (19) the following new 
paragraph: 
"(20) provide, to the extent required by section 466, that the 
State (A) shall have in effect all of the laws to improve child 
support enforcement effectiveness which are referred to in that 
section, and (B) shall implement the procedures which are 
prescribed in or pursuant to such laws.", 
(b) Part D of title IV of such Act is further amended by adding at 
the end thereof the following new section: 
"REQUIREMENT OF STATUTORILY PRESCRIBED PROCEDURES TO IMPROVE 
EFFECTIVENESS OF CHILD SUPPORT ENFORCEMENT 
42 use 666. 
"SEC. 466. (a) In order to satisfy section 454(20)(A), each State must 
Supra. 
have in effect laws requiring the use of the following procedures, 
consistent with this section and with regulations of the Secretary, to 
increase the effectiveness of the program which the State adminis-
ters under this part: 
"(1) Procedures described in subsection (b) for the withholding 
from income of amounts payable as support. 
"(2) Procedures under which expedited processes (determined 
in accordance with regulations of the Secretary) are in effect 
under the State judicial system or under State administrative 
processes (A) for obtaining and enforcing support orders, and (B) 
at the option of the State, for establishing paternity. The Secre-
tary may waive the provisions of this paragraph with respect to 
one or more political subdivisions within the State on the basis 
of the effectiveness and timeliness of support order issuance and 
enforcement within the political subdivision (in accordance with 
the general rule for exemptions under subsection (d)). 
"(3) Procedures under which the State child support enforce-
ment agency shall request, and the State shall provide, that for 
the purpose of enforcing a support order under any State plan 
approved under this part— 
"(A) any refund of State income tax which would other-
wise be payable to an absent parent will be reduced, after 
notice has been sent to that absent parent of the proposed 
reduction and the procedures to be followed to contest it 
(and after full compliance with all procedural due process 
requirements of the State), by the amount of any overdue 
support owed by such absent parent; 
Ante, p. 1145. 
(B) the amount by which such refund is reduced shall be 
Post, p. 1317. 
distributed in accordance with section 457 (b)(4) or (d)(3) in 
the CEise of overdue support assigned to a State pursuant to 
42 use 602. 
section 402(a)(26) or 471(a)(17), or, in the case of overdue 
Post, p, 1318. 
support which a State has agreed to collect under section 
Post, pp. 1310, 
454(6), shall be distributed, after deduction of any fees 
1319, 1324. 
42 u s e 654. 
PUBLIC LAW 98-378—AUG. 16, 1984 
98 STAT. 1307 
imposed by the State to cover the costs of collection, to the 
child or parent to whom such support is owed; and 
"(C) notice of the absent parent's social security account 
number (or numbers, if he has more than one such number) 
and home address shall be furnished to the State agency 
requesting the refund offset, and to the State agency enforc-
ing the order. 
"(4) Procedures under which liens are imposed against real 
and personal property for amounts of overdue support owed by 
,. 
an absent parent who resides or owns property in the State. 
"(5) Procedures which permit the establishment of the pater-
nity of any child at any time prior to such child's eighteenth 
birthday. 
"(6) Procedures which require that an absent parent give 
,_..-,. 
. 
security, post a bond, or give some other guarantee to secure 
payment of overdue support, after notice has been sent to such 
absent parent of the proposed action and of the procedures to be 
followed to contest it (and after full compliance with all proce-
dural due process requirements of the State). 
"(7) Procedures by which information regarding the amount 
of overdue support owed by an absent parent residing in the 
State will be made available to any consumer reporting agency 
(as defined in section 603(f) of the Fair Credit Reporting Act (15 
U.S.C. 1681a(f))) upon the request of such agency; except that (A) 
if the amount of the overdue support involved in any case is less 
than $1,000, information regarding such amount shall be made 
available only at the option of the State, (B) any information 
with respect to an absent parent shall be made available under 
such procedures only after notice has been sent to such absent 
parent of the proposed action, and such absent parent has been 
given a reasonable opportunity to contest the accuracy of such 
information (and after full compliance with all procedural due 
process requirements of the State), and (C) a fee for furnishing 
such information, in an amount not exceeding the actual cost 
thereof, may be imposed on the requesting agency by the State. 
"(8) Procedures under which all child support orders which 
are issued or modified in the State will include provision for 
withholding from wages, in order to assure that withholding as 
a means of collecting child support is available if arrearages 
occur without the necessity of filing application for services 
under this part. 
Notwithstanding section 454(20)(B), the procedures which are re- Ante, p. 1306. 
quired under paragraphs (3), (4), (6), and (7) need not be used or 
applied in cases where the State determines (using guidelines which 
are generally available within the State and which take into ac-
count the payment record of the absent parent, the availability of 
other remedies, and other relevant considerations) that such use or 
application would not carry out the purposes of this part or would be 
otherwise inappropriate in the circumstances. 
"(b) The procedures referred to in subsection (a)(1) (relating to the Withholding of 
withholding from income of amounts payable as support) must income. 
provide for the following: 
"(1) In the case of each absent parent against whom a support 
order is or has been issued or modified in the State, and is being 
enforced under the State plan, so much of such parent's wages 
(as defined by the State for purposes of this section) must be 
withheld, in accordance with the succeeding provisions of this 
98 STAT. 1308 
PUBLIC LAW 98-378—AUG. 16, 1984 
subsection, as is necessary to comply with the order and provide 
for the payment of any fee to the employer which may be 
required under paragraph (6)(A), up to the maximum amount 
permitted under section 303(b) of the Consumer Credit Protec-
tion Act (15 U.S.C. 1673(b)). If there are arrearages to be col-
lected, amounts withheld to satisfy such arrearages, when added 
to the amounts withheld to pay current support and provide for 
the fee, may not exceed the limit permitted under such section 
42 use 503. 
303(b), but the State need not withhold up to the maximum 
amount permitted under such section in order to satisfy 
arrearages. 
"(2) Such withholding must be provided without the necessity 
of any application therefor in the case of a child (whether or not 
42 use 601. 
eligible for aid under part A) with respect to whom services are 
already being provided under the State plan under this part, 
and must be provided in accordance with this subsection on the 
basis of an application for services under the State plan in the 
case of any other child in whose behalf a support order has been 
issued or modified in the State. In either case such withholding 
must occur without the need for any amendment to the support 
order involved or for any further action (other than those 
actions required under this part) by the court or other entity 
which issued such order. 
"(3) An absent parent shall become subject to such withhold-
ing, and the advance notice required under paragraph (4) shall 
be given, on the earliest of— 
"(A) the date on which the payments which the absent 
parent has failed to make under such order are at least 
equal to the support payable for one month, 
"(B) the date as of which the absent parent requests that 
such withholding begin, or 
"(C) such earlier date as the State may select. 
"(4)(A) Such withholding must be carried out in full compli-
ance with all procedural due process requirements of the State, 
and (subject to subparagraph (B)) the State must send advance 
notice to each absent parent to whom paragraph (1) applies 
regarding the proposed withholding and the procedures such 
absent parent should follow if he or she desires to contest such 
withholding on the grounds that withholding (including the 
amount to be withheld) is not proper in the case involved 
because of mistakes of fact. If the absent parent contests 
such withholding on those grounds, the State shall determine 
whether such withholding will actually occur, shall (within no 
more than 45 days after the provision of such advance notice) 
inform such parent of whether or not withholding will occur 
and (if so) of the date on which it is to begin, and shall furnish 
such parent with the information contained in any notice given 
to the employer under paragraph (6)(A) with respect to such 
withholding. 
"(B) The requirement of advance notice set forth in the first 
sentence of subparagraph (A) shall not apply in the case of any 
State which has a system of income withholding for child 
support purposes in effect on the date of the enactment of this 
section if such system provides on that date, and continues to 
provide, such procedures as may be necessary to meet the 
procedural due process requirements of State law. 
PUBLIC LAW 98-378—AUG. 16, 1984 
98 STAT. 1309 
"(5) Such withholding must be administered by a public 
agency designated by the State, and the amounts withheld must 
be expeditiously distributed by the State or such agency in 
accordance with section 457 under procedures (specified by the 42 use 657. 
State) adequate to document payments of support and to track 
and monitor such payments, except that the State may establish 
or permit the establishment of alternative procedures for the 
collection and distribution of such amounts (under the supervi-
sion of such public agency) otherwise than through such public 
agency so long as the entity making such collection and distri-
bution is publicly accountable for its actions taken in carrying 
- > 
out such procedures, and so long as such procedures will assure 
prompt distribution, provide for the keeping of adequate records 
to document payments of support, and permit the tracking and 
monitoring of such payments. 
"(6)(A)(i) The employer of any absent parent to whom para-
graph (1) applies, upon being given notice as described in clause 
(ii), must be required to withhold from such absent parent's 
wages the amount specified by such notice (which may include a 
fee, established by the State, to be paid to the employer unless 
waived by such employer) and pay such amount (after deducting 
and retaining any portion thereof which represents the fee so 
established) to the appropriate agency (or other entity author- 
' 
ized to collect the amounts withheld under the alternative 
procedures described in paragraph (5)) for distribution in 
accordance with section 457. 
"(ii) The notice given to the employer shall contain only such 
information as may be necessary for the employer to comply 
with the withholding order. 
"(B) Methods must be established by the State to simplify the 
withholding process for employers to the greatest extent possi-
ble, including permitting any employer to combine all withheld 
amounts into a single payment to each appropriate agency or 
entity (with the portion thereof which is attributable to each 
individual employee being separately designated). 
"(C) The employer must be held liable to the State for any 
amount which such employer fails to withhold from wages due 
an employee following receipt by such employer of proper notice 
under subparagraph (A), but such employer shall not be re-
quired to vary the normal pay and disbursement cycles in order 
to comply with this paragraph. 
"(D) Provision must be made for the imposition of a fine 
against any employer who discharges from employment, refuses 
to employ, or takes disciplinary action against any absent 
parent subject to wage withholding required by this subsection 
because of the existence of such withholding and the obligations 
or additional obligations which it imposes upon the employer. 
"(7) Support collection under this subsection must be given 
priority over any other legal process under State law against 
the same wages. 
"(8) The State may take such actions as may be necessary to 
extend its system of withholding under this subsection so that 
such system will include withholding from forms of income 
other than wages, in order to assure that child support owed by 
absent parents in the State will be collected without regard to 
the types of such absent parents' income or the nature of their 
income-producing activities. 
98 STAT. 1310 
PUBLIC LAW 98-378—AUG. 16, 1984 
"(9) The State must extend its withholding system under this 
subsection so that such system will include withholding from 
income derived within such State in cases where the applicable 
support orders were issued in other States, in order to assure 
that child support owed by absent parents in such State or any 
other State will be collected without regard to the residence of 
the child for whom the support is payable or of such child's 
custodial parent. 
"(10) Provision must be made for terminating withholding. 
42 use 654. 
"(c) Any State may at its option, under its plan approved under 
section 454, establish procedures under which support payments 
under this part will be made through the State agency or other 
entity which administers the State's income withholding system in 
any case where either the absent parent or the custodial parent 
requests it, even though no arrearages in child support payments 
are involved and no income withholding procedures have been 
instituted; but in any such case an annual fee for handling and 
processing such payments, in an amount not exceeding the actual 
costs incurred by the State in connection therewith or $25, which-
ever is less, shall be imposed on the requesting parent by the State. 
Exemption. 
"(d) If a State demonstrates to the satisfaction of the Secretary, 
through the presentation to the Secretary of such data pertaining to 
caseloads, processing times, administrative costs, and average sup-
port collections, and such other data or estimates as the Secretary 
may specify, that the enactment of any law or the use of any 
procedure or procedures required by or pursuant to this section will 
not increase the effectiveness and efficiency of the State child 
support enforcement program, the Secretary may exempt the State, 
subject to the Secretary's continuing review and to termination of 
the exemption should circumstances change, from the requirement 
to enact the law or use the procedure or procedures involved. 
"(e) For purposes of this section, the term 'overdue support' means 
the amount of a delinquency pursuant to an obligation determined 
under a court order, or an order of an administrative process 
established under State law, for support and maintenance of a 
minor child which is owed to or on behalf of such child, or for 
support and maintenance of the absent parent's spouse (or former 
spouse) with whom the child is living if and to the extent that 
spousal support (with respect to such spouse or former spouse) would 
be included for purposes of paragraph (4) or (6) of section 454. At the 
option of the State, overdue support may include amounts which 
otherwise meet the definition in the first sentence of this subsection 
but which are owed to or on behalf of a child who is not a minor 
child. The option to include support owed to children who are not 
minors shall apply independently to each procedure specified under 
this section.". 
(c) Section 454(6)(B) of such Act is amended to read as follows: "(B) 
an application fee for furnishing such services shall be imposed, 
which shall be paid by the individual applying for such services, or 
recovered from the absent parent, or paid by the State out of its own 
funds (the payment of which from State funds shall not be consid-
ered as an administrative cost of the State for the operation of the 
plan, and shall be considered income to the program), the amount of 
which (i) will not exceed $25 (or such higher or lower amount (which 
shall be uniform for all States) as the Secretary may determine to be 
appropriate for any fiscal year to reflect increases or decreases in 
PUBLIC LAW 98-378—AUG. 16, 1984 
98 STAT. 1311 
administrative costs), and (ii) may vary among such individuals on 
the basis of ability to pay (as determined by the State), and". 
(d) Section 454 of such Act (as amended by subsection (a) of this 
section) is further amended— 
Ante, p. 1306. 
(1) by striking out "and" at the end of paragraph (19); 
(2) by striking out the period at the end of paragraph (20) and 
inserting in lieu thereof "; and"; and 
(3) by adding after paragraph (20) the following new 
paragraph: 
"(21)(A) at the option of the State, impose a late payment fee 
on all overdue support (as defined in section 466(e)) under any Ante, p. 1306. 
obligation being enforced under this part, in an amount equal to 
a uniform percentage determined by the State (not less than 3 
percent nor more than 6 percent) of the overdue support, which 
shall be payable by the absent parent owing the overdue sup-
port; and 
"(B) assure that the fee will be collected in addition to, and 
only after full payment of, the overdue support, and that the 
imposition of the late payment fee shall not directly or indi-
rectly result in a decrease in the amount of the support which is 
paid to the child (or spouse) to whom, or on whose behalf, it is 
• ! 
owed.". 
(e) Section 454(5) of such Act is amended by inserting after 
42 USC 654. 
"directly to the family" the following: ", and the individual will be 
notified at least annually of the amount of the support payments 
collected;". 
(f) Section 454 of such Act is further amended by adding at the end 
thereof (after and below paragraph (21) (as added by subsection (d) of 
' 
' i 
this section)) the following new sentence: 
Supra. 
"The State may allow the jurisdiction which makes the collection 
involved to retain any application fee under paragraph (6)(B) or any Ante, p. 1310. 
late payment fee under paragraph (21).". 
(g)(1) Except as provided in paragraphs (2) and (3), the amend- Effective dates, 
ments made by this section shall become effective on October 1, 42 USC 654 note. 
1985. 
(2) Section 454(21) of the Social Security Act (as added by subsec-
tion (d) of this section), and section 466(e) of such Act (as added by Supra. 
subsection (b) of this section), shall be effective with respect to Ante, p. 1306. 
support owed for any month beginning after the date of the enact-
ment of this Act. 
(3) In the case of a State with respect to which the Secretary of 
Health and Human Services has determined that State legislation is 
required in order to conform the State plan approved under part D 
of title IV of the Social Security Act to the requirements imposed by 42 USC 651. 
any amendment made by this section, the State plan shall not be 
regarded as failing to comply with the requirements of such part 
solely by reason of its failure to meet the requirements imposed by 
such amendment prior to the beginning of the fourth month begin-
ning after the end of the first session of the State legislature which 
ends on or after October 1, 1985. For purposes of the preceding 
sentence, the term "session" means a regular, special, budget, or 
other session of a State legislature. 
FEDERAL MATCHING OF ADMINISTRATIVE COSTS 
SEC. 4. (a) Section 455(a) of the Social Security Act is amended— 
42 USC 655. 
(1) by inserting "(1)" after "(a)"; 
98 STAT. 1312 
PUBLIC LAW 98-378—AUG. 16, 1984 
(2) by striking out ", beginning with the quarter commencing 
July 1,1975,"; 
(3) by striking out paragraph (2) and redesignating para-
graphs (1) and (3) as subparagraphs (A) and (B), respectively; 
(4) by amending paragraph (1)(A) as so redesignated to read as 
follows: 
"(A) equal to the percent specified in paragraph (2) of the 
total amounts expended by such State during such quarter for 
the operation of the plan approved under section 454, and"; 
(5) in paragraph (1)(B) as so redesignated, by striking out 
"specified in clause (1) or (2)" and inserting in lieu thereof 
"specified in subparagraph (A)"; and 
(6) by adding at the end thereof the following new paragraph: 
"(2) The percent applicable to quarters in a fiscal year for pur-
poses of paragraph (1)(A) is— 
"(A) 70 percent for fiscal years 1984, 1985, 1986, and 1987, 
"(B) 68 percent for fiscal years 1988 and 1989, and 
"(C) 66 percent for fiscal year 1990 and each fiscal year 
(b) Subsections (d)(1)(B), (d)(2)(A), (d)(2)(B), and (e) of section 452 of 
42 use 652. 
such Act are each amended by striking out "455(a)(3)" and inserting 
in lieu thereof "455(a)(1)(B)". 
Effective date. 
(c) The amendments made by this section shall apply to fiscal 
42 use 652 note, years after fiscal year 1983. 
FEDERAL INCENTIVE PAYMENTS 
42 use 658. 
SEC. 5. (a) Section 458 of the Social Security Act is amended to 
read as follows: 
"INCENTIVE PAYMENTS TO STATES 
"SEC. 458. (a) In order to encourage and reward State child 
support enforcement programs which perform in a cost-effective and 
efficient manner to secure support for all children who have sought 
assistance in securing support, whether such children reside within 
the State or elsewhere and whether or not they are eligible for aid to 
families with dependent children under a State plan approved under 
part A of this title, and regardless of the economic circumstances of 
their parents, the Secretary shall, from support collected which 
would otherwise represent the Federal share of assistance to fami-
lies of absent parents, pay to each State for each fiscal year, on a 
quarterly basis (as described in subsection (e)) beginning with the 
quarter commencing October 1, 1985, an incentive payment in an 
amount determined under subsection (b). 
"(b)(1) Except as provided in paragraphs (2), (3), and (4), the 
incentive payment shall be equal to— 
"(A) 6 percent of the total amount of support collected under 
the plan during the fiscal year in cases in which the support 
obligation involved is assigned to the State pursuant to section 
42 use 602. 
402(a)(26) or section 471(a)(17) (with such total amount for any 
Post, p. 1318. 
fiscal 
year being hereafter referred to in this section as the 
State's 'AFDC collections' for that year), plus 
"(B) 6 percent of the total amount of support collected during 
the fiscal year in all other cases under this part (with such total 
amount for any fiscal year being hereafter referred to in this 
section as the State's 'non-AFDC collections' for that year). 
PUBLIC LAW 98-378—AUG. 16, 1984 
98 STAT. 1313 
"(2) If subsection (c) applies with respect to a State's AFDC 
collections or non-AFDC collections for any fiscal year, the percent 
specified in paragraph (1) (A) or (B) (with respect to such collections) 
shall be increased to the higher percent determined under such 
subsection (with respect to such collections) in determining the 
State's incentive pa5mient under this subsection for that year. 
"(3) The dollar amount of the portion of the State s incentive 
pa5mient for any fiscal year which is determined on the basis of its 
non-AFDC collections under paragraph (1)(B) (after adjustment 
under subsection (c) if applicable) shall in no case exceed— 
"(A) the dollar amount of the portion of such pa5mient which 
is determined on the basis of its AFDC collections under para- 
. ; (, ,^,,^^ 
graph (1)(A) (after adjustment under subsection (c) if applicable) 
in the case of fiscal year 1986 or 1987; 
"(B) 105 percent of such dollar amount in the case of fiscal 
year 1988; 
"(C) 110 percent of such dollar amount in the case of fiscal 
year 1989; or 
"(D) 115 percent of such dollar amount in the case of fiscal 
year 1990 or any fiscal year thereafter. 
"(4) The Secretary shall make such additional pajnnents to the 
State under this part, for fiscal year 1986 or 1987, as may be 
necessary to assure that the total amount of payments under this Ante, p. 1311. 
section and section 455(a)(1)(A) for such fiscal year is no less than 80 
percent of the amount that would have been payable to that State 
and its political subdivisions for such fiscal year under this section 
and section 455(a)(1)(A) if those sections (including the amendment 
i 
made by section 5(c)(2XA) of the Child Support Enforcement Amend- 
' 
ments of 1984) had remained in effect as they were in effect for fiscal Ante, p. 1312. 
year 1985. 
"(c) If the total amount of a State's AFDC collections or non-AFDC 
collections for any fiscal year bears a ratio to the total amount 
expended by the State in that year for the operation of its plan 
approved under section 454 for which payment may be made under 42 use 654. 
section 455 (with the total amount so expended in any fiscal year 42 use 655. 
being hereafter referred to in this section as the State's 'combined 
AFE)C/non-AFDC administrative costs' for that year) which is equal 
to or greater than 1.4, the relevant percent specified in subpara-
graph (A) or (B) of subsection (b)(1) (with respect to such collections) 
shall be increased to— 
"(1) 6.5 percent, plus 
"(2) one-half of 1 percent for each full two-tenths by which 
, i u 
such ratio exceeds 1.4; 
except that the percent so specified shall in no event be increased 
(for either AFDC collections or non-AFDC collections) to more than 
10 percent. For purposes of the preceding sentence, laboratory costs 
incurred in determining paternity in any fiscal year may at the 
option of the State be excluded from the State's combined AFDC/ 
non-AFDC administrative costs for that year. 
"(d) In computing incentive payments under this section, support 
which is collected by one State on behalf of individuals residing in 
A . 
another State shall be treated as having been collected in full by 
each such State. 
"(e) The amounts of the incentive payments to be made to the 
various States under this section for any fiscal year shall be esti-
mated by the Secretary at or before the beginning of such year on 
the basis of the best information available. The Secretary shall 
98 STAT. 1314 
PUBLIC LAW 98-378—AUG. 16, 1984 
Ante, p. 1306. 
Effective dates. 
42 u s e 658 note. 
Ante, p. 1312. 
Ante, p. 1145. 
42 u s e 658 note. 
Ante, p. 1145. 
make such pajnnents for such year, on a quarterly basis (with each 
quarterly pajnnent being made no later than the beginning of the 
quarter involved), in the amounts so estimated, reduced or increased 
to the extent of any overpayments or underpayments which the 
Secretary determines were made under this section to the States 
involved for prior periods and with respect to which adjustment has 
not already been made under this subsection. Upon the making of 
any estimate by the Secretary under the preceding sentence, any 
appropriations available for payments under this section shall be 
deemed obligated.". 
(b) Section 454 of such Act (as amended by subsections (a), (d), and 
(f) of section 3 of this Act) is amended— 
(1) by striking out "and" at the end of paragraph (20); 
(2) by striking out the period at the end of paragraph (21) and 
inserting in lieu thereof "; and"; and 
(3) by inserting immediately after paragraph (21) the follow-
ing new paragraph: 
(22) in order for the State to be eligible to receive any 
incentive payments under section 458, provide that, if one or 
more political subdivisions of the State participate in the costs 
of carrying out activities under the State plan during any 
period, each such subdivision shall be entitled to receive an 
appropriate share (as determined by the State) of any such 
incentive payments made to the State for such period, taking 
into account the efficiency and effectiveness of the activities 
carried out under the State plan by such political subdivision.". 
(cXD The amendments made by the preceding provisions of this 
section shall become effective on October 1,1985. 
(2)(A) Effective until September 30, 1985, section 458(a) of the 
Social Security Act is amended by striking out "distributed as 
provided in section 457 to reduce or repay assistance payments" and 
inserting in lieu thereof "distributed as provided in paragraphs (1), 
(2), and (4XA) of section 457(b)". 
(B) The reference to provisions of section 457(b) of the Social 
Security Act in the amendment made by subparagraph (A) of this 
paragraph is a reference to such provisions as in effect after the 
effective date of section 2640(b) of the Deficit Reduction Act of 1984. 
90-PERCENT MATCHING FOR AUTOMATED MANAGEMENT SYSTEMS USED 
IN INCOME WITHHOLDING AND OTHER REQUIRED PROCEDURES 
42 use 654. 
SEC. 6. (a) Section 454(16) of the Social Security Act is amended by 
striking out "and (D)" and inserting in lieu thereof the following: 
"(D) to facilitate the development and improvement of the income 
withholding and other procedures required under section 466(a) 
through the monitoring of support payments, the maintenance of 
accurate records regarding the payment of support, and the prompt 
provision of notice to appropriate officials with respect to any 
arrearages in support pajonents which may occur, and (E)". 
(b) Section 455(a)(1)(B) of such Act (as redesignated by section 4(a) 
Ante, p. 1311. 
of this Act) is amended— 
(1) by inserting after "automatic data processing and informa-
tion retrieval system" the following: "(including in such sums 
the full cost of the hardware components of such system)"; and 
(2) by inserting before the semicolon at the end thereof the 
following: ", or meets such requirements without regard to 
clause (D) thereof. 
PUBLIC LAW 98-378—AUG. 16, 1984 
98 STAT. 1315 
(c) The amendments made by this section shall apply with respect Effective date. 
to quarters beginning on or after October 1,1984. 
42 use 654 note. 
CONTINUATION OF SUPPORT ENFORCEMENT FOR AFDC RECIPIENTS 
WHOSE BENEFITS ARE BEING TERMINATED 
SEC. 7. (a) Section 457(c) of the Social Security Act is amended— 42 use 657. 
(1) by striking out "may" in the matter preceding paragraph 
(1) and inserting in lieu thereof "shall"; and 
(2) by striking out "the net amount o f in paragraph (2), and 
- 
-
by striking out "to the family" and all that follows in such 
paragraph and inserting in lieu thereof "to the family (without 
requiring any formal reapplication and without the imposition 
of any application fee) on the same basis as in the case of other 
• ' 
individuals who are not receiving assistance under part A of 42 use 601. 
this title,", 
(b) The amendments made by subsection (a) shall become effective Effective date. 
October 1, 1984. 
42 u s e 657 note. 
SPECIAL PROJECT GRANTS TO PROMOTE IMPROVEMENTS IN INTERSTATE 
ENFORCEMENT 
SEC. 8. Section 455 of the Social Security Act is amended by adding 42 use 655. 
at the end thereof the following new subsection: 
"(e)(1) In order to encourage and promote the development and 
use of more effective methods of enforcing support obligations under 
this part in cases where either the children on whose behalf the 
support is sought or their absent parents do not reside in the State 
where such cases are filed, the Secretary is authorized to make 
grants, in such amounts and on such terms and conditions as the 
Secretary determines to be appropriate, to States which propose to 
undertake new or innovative methods of support collection in such 
cases and which will use the proceeds of such grants to carry out 
special projects designed to demonstrate and test such methods. 
"(2) A grant under this subsection shall be made only upon a 
finding by the Secretary that the project involved is likely to be of 
significant assistance in carrying out the purpose of this subsection; 
and with respect to such project the Secretary may waive any of the 
requirements of this part which would otherwise be applicable, to 
such extent and for such period as the Secretary determines is 
necessary or desirable in order to enable the State to carry out the 
project. 
"(3) At the time of its application for a grant under this subsection 
the State shall submit to the Secretary a statement describing in 
reasonable detail the project for which the proceeds of the grant are 
to be used, and the State shall from time to time thereafter submit 
to the Secretary such reports with respect to the project as the 
Secretary may specify. 
"(4) Amounts expended by a State in carrying out a special project 
assisted under this section shall be considered, for purposes of 
section 458(b) (as amended by section 5(a) of the Child Support 
Enforcement Amendments of 1984), to have been expended for the 
operation of the State's plan approved under section 454. 
"(5) There is authorized to be appropriated the sum of $7,000,000 
for fiscal year 1985, $12,000,000 for fiscal year 1986, and $15,000,000 
for each fiscal year thereafter, to be used by the Secretary in 
making grants under this subsection.". 
Reports. 
Ante, p. 1312. 
42 u s e 654. 
Appropriation 
authorization. 
98 STAT. 1316 
PUBLIC LAW 98-378—AUG. 16, 1984 
PERIODIC REVIEW OF EFFECTIVENESS OF STATE PROGRAMS; 
MODIFICATION OF PENALTY 
42 use 652. 
SEC 9. (a)(1) Section 452(a)(4) of the Social Security Act is amended 
by striking out "not less often than annually" and inserting in lieu 
thereof "not less often than once every three years (or not less often 
than annually in the case of any State to which a reduction is being 
Infra. 
applied under section 403(h)(1), or which is operating under a correc-
tive action plan in accordance with section 403(h)(2))". 
42 use 602. 
(2) Section 402(a)(27) of such Act is amended by striking out 
"operate a child support program in conformity with such plan" and 
inserting in lieu thereof "operates a child support program in 
substantial compliance with such plan". 
42 use 603. 
(b) Section 403(h) of such Act is amended to read as follows: 
"(h)(1) Notwithstanding any other provision of this Act, if a State's 
42 use 651. 
program operated under part D is found as a result of a review 
Supra. 
conducted under section 452(a)(4) not to have complied substantially 
with the requirements of such part for any quarter beginning after 
September 30, 1983, and the Secretary determines that the State's 
program is not complying substantially with such requirements at 
the time such finding is made, the amounts otherwise payable to the 
State under this part for such quarter and each subsequent quarter, 
prior to the first quarter throughout which the State program is 
found to be in substantial compliance with such requirements, shall 
be reduced (subject to paragraph (2)) by— 
"(A) not less than one nor more than two percent, or 
"(B) not less than two nor more than three percent, if the 
finding is the second consecutive such finding made as a result 
of such a review, or 
"(C) not less than three nor more than five percent, if the 
finding is the third or a subsequent consecutive such finding 
made as a result of such a review. 
"(2)(A) The reductions required under paragraph (1) shall be 
suspended for any quarter if^ 
"(i) the State submits a corrective action plan, within a period 
prescribed by the Secretary following notice of the finding 
under paragraph (1), which contains steps necessary to achieve 
substantial compliance within a time period which the Secre-
tary finds to be appropriate; 
"(ii) the Secretary approves such corrective action plan (and 
any amendments thereto) as being sufficient to achieve substan-
tial compliance; and 
"(iii) the Secretary finds that the corrective action plan (and 
any amendment thereto approved by the Secretary under clause 
(ii)), is being fully implemented by the State and that the State 
is progressing in accordance with the timetable contained in the 
plan to achieve substantial compliance with such requirements. 
"(B) A suspension of the penalty under subparagraph (A) shall 
continue until such time as the Secretary determines that— 
"(i) the State has achieved substantial compliance, 
"(ii) the State is no longer implementing its corrective action 
plan, or 
"(iii) the State is implementing or has implemented its correc-
tive action plan but has failed to achieve substantial compliance 
within the appropriate time period (as specified in subpara-
graph (A)(i)). 
PUBLIC LAW 98-378—AUG. 16, 1984 
98 STAT. 1317 
"(C)(i) In the case of a State whose penalty suspension ends 
pursuant to subparagraph (B)(i), the penalty shall not be applied. 
"(ii) In the case of a State whose penalty suspension ends pursu-
ant to subparagraph (B)(ii), the penalty shall be applied as if the 
suspension had not occurred. 
"(iii) In the case of a State whose penalty suspension ends pursu-
ant to subparagraph (B)(iii), the penalty shall be applied to all 
quarters ending after the expiration of the time period specified in 
such subparagraph (and prior to the first quarter throughout which 
the State program is found to be in substantial compliance). 
"(3) For purposes of this subsection, section 402(a)(27), and section Ante, p. 1316. 
452(a)(4), a State which is not in full compliance with the require- Ante, p. 1316. 
ments of this part shall be determined to be in substantial compli-
ance with such requirements only if the Secretary determines that 
any noncompliance with such requirements is of a technical nature 
which does not adversely affect the performance of the child support 
enforcement program.". 
(c) The amendments made by this section shall be effective on and Effective date. 
after October 1,1983. 
42 use 602 note. 
EXTENSION OF SECTION 1115 DEMONSTRATION AUTHORITY TO CHILD 
i 
SUPPORT ENFORCEMENT PROGRAM 
,. SEC 10. (a) Section 1115(a) of the Social Security Act is amended— 42 use 1315. 
(1) by striking out "part A" in the matter preceding para-
graph (1) and inserting in lieu thereof "part A or D"; 
(2) by striking out "402," in paragraph (1) and inserting in 
lieu thereof "402, 454,"; and 
(3) by striking out "403," in paragraph (2) and inserting in 
lieu thereof "403, 455,". 
(b) Section 1115 of such Act is further amended by adding at the 42 use 1315. 
end thereof the following new subsection: 
"(c) In the case of any experimental, pilot, or demonstration 
project undertaken under subsection (a) to assist in promoting the 
objectives of part D of title IV, the project— 
42 use 651. 
"(1) must be designed to improve the financial well-being of 
children or otherwise improve the operation of the child support 
program; 
"(2) may not permit modifications in the child support pro-
gram which would have the effect of disadvantaging children in 
need of support; and 
"(3) must not result in increased cost to the Federal Govern-
ment under the program of aid to families with dependent 
children.". 
CHILD SUPPORT ENFORCEMENT FOR CERTAIN CHILDREN IN FOSTER CARE 
SEC 11. (a)(1) Section 457 of the Social Security Act is amended by 42 use 657. 
adding at the end thereof the following new subsection: 
"(d) Notwithstanding the preceding provisions of this section, 
amounts collected by a State as child support for months in any 
period on behalf of a child for whom a public agency is making 
foster care maintenance payments under part E— 
42 USC 670. 
"(1) shall be retained by the State to the extent necessary to 
reimburse it for the foster care maintenance payments made 
with respect to the child during such period (with appropriate 
98 STAT. 1318 
PUBLIC LAW 98-378—AUG. 16, 1984 
reimbursement of the Federal Government to the extent of its 
participation in the financing); 
"(2) shall be paid to the public agency responsible for super-
vising the placement of the child to the extent that the amounts 
collected exceed the foster care maintenance payments made 
with respect to the child during such period but not the 
amounts required by a court or administrative order to be paid 
as support on behalf of the child during such period; and the 
responsible agency may use the payments in the manner it 
determines will serve the best interests of the child, including 
setting such payments aside for the child's future needs or 
making all or a part thereof available to the person responsible 
for meeting the child's day-to-day needs; and 
"(3) shall be retained by the State, if any portion of the 
amounts collected remains after making the pajnnents required 
under paragraphs (1) and (2), to the extent that such portion is 
necessary to reimburse the State (with appropriate reimburse-
ment to the Federal Government to the extent of its participa-
tion in the financing) for any past foster care maintenance 
payments (or payments of aid to families with dependent chil-
dren) which were made with respect to the child (and with 
respect to which past collections have not previously been 
retained); 
and any balance shall be paid to the State agency responsible for 
supervising the placement of the child, for use by such agency in 
accordance with paragraph (2).". 
Ante, p. 1145. 
(2) Section 457(b) of such Act is amended by inserting "(subject to 
42 use 657. 
subsection (d))" after "shall" in the matter preceding paragraph (1). 
(b) Part D of title IV of such Act is further amended— 
Post, p. 1319. 
(1) in section 454(4)(B), by inserting "including an assignment 
with respect to a child on whose behalf a State agency is making 
42 use 670. 
foster care maintenance payments under part E," immediately 
after "such assignment is effective,", and by inserting "or E" 
immediately after "part A"; and 
Ante, p. 1167. 
(2) in section 456(a), by inserting "or secured on behalf of a 
42 use 656. 
child receiving foster care maintenance pa5nnents" immediately 
after "section 402(a)(26)". 
42 use 671. 
(c) Section 471(a) of such Act is amended— 
(1) by striking out "and" at the end of paragraph (15); 
(2) by striking out the period at the end of paragraph (16) and 
inserting in lieu thereof "; and"; and 
(3) by adding at the end thereof the following new paragraph: 
"(17) provides that, where appropriate, all steps will be taken, 
including cooperative efforts with the State agencies adminis-
42 use 601, 651. 
tering the plans approved under parts A and D, to secure an 
assignment to the State of any rights to support on behalf of 
each child receiving foster care maintenance pajnnents under 
this part.". 
Post, p. 1322. 
(d) Section 464(a) of such Act is amended— 
(1) by inserting "or section 471(a)(17)" after "402(a)(26)"; and 
(2) by striking out "457(b)(3)" and inserting in lieu thereof 
"457 (b)(4) or (d)(3)". 
Effective date. 
(e) The amendments made by this section shall become effective 
42 use 654 note. October 1, 1984, and shall apply to collections made on or after that 
date. 
PUBLIC LAW 98-378—AUG. 16, 1984 
98 STAT. 1319 
ENFORCEMENT WITH RESPECT TO BOTH CHILD AND SPOUSAL SUPPORT 
SEC. 12. (a) Section 454(4)(B) of the Social Security Act is 42 use 654. 
amended— 
(1) by striking out "and, at the option of the State," and 
inserting in Heu thereof ", and"; and 
(2) by inserting ", and only if the support obligation estab-
lished with respect to the child is being enforced under the 
plan" immediately after "but only if a support obligation has 
been established with respect to such spouse". 
.. , i r 
(b) Clause (A) of section 454(6) of such Act is amended— 
(1) by striking out ", at the option of the State,"; and 
(2) by inserting ", and only if the support obligation estab-
lished with respect to the child is being enforced under the 
plan" immediately after "but only if a support obligation has 
been established with respect to such spouse". 
(c) The amendments made by this section shall become effective Effective date. 
October 1, 1985. 
42 u s e 654 note. 
MODIFICATIONS IN CONTENT OF ANNUAL REPORT OF THE SECRETARY 
SEC. 13. (a) Section 452(a)(10)(C) of the Social Security Act is 42 use 652. 
amended to read as follows: 
"(C) the following data, with the data required under 
each clause being separately stated for cases where the 
child is receiving aid to families with dependent children 
(or foster care maintenance payments under part E), cases 
where the child was formerly receiving such aid or pay-
ments and the State is continuing to collect support as-
signed to it under section 402(a)(26) or 471(a)(17), and all 42 use 602. 
other cases under this part: 
^"^^' P- i^^^-
"(i) the total number of cases in which a support 
obligation has been established in the fiscal year for 
which the report is submitted, and the total amount of 
such obligations; 
"(ii) the total number of cases in which a support 
obligation has been established, and the total amount 
of such obligations; 
"(iii) the number of cases described in clause (i) in 
which support was collected during such fiscal year, 
and the total amount of such collections; 
"(iv) the number of cases described in clause (ii) in 
which support was collected during such fiscal year, 
and the total amount of such collections; and 
"(v) the number of child support cases filed in each 
State in such fiscal year, and the amount of the collec-
tions made in each State in such fiscal year, on behalf 
of children residing in another State or against parents 
residing in another State;", 
(b) Section 452(aX10) of such Act is further amended— 
42 use 652. 
(1) by striking out "and" at the end of subparagraph (G); 
(2) by striking out the period at the end of subparagraph (H) 
and inserting in lieu thereof "; and"; and 
' 
(3) by inserting immediately after subparagraph (H) the fol-
lowing new subparagraph: 
98 STAT. 1320 
PUBLIC LAW 98-378—AUG. 16, 1984 
Effective date. 
42 u s e 652 note. 
"(I) the amount of administrative costs which are 
expended in each functional category of expenditures, in-
cluding establishment of paternity.". 
(c) The amendments made by this section shall be effective for 
reports for fiscal year 1986 and each fiscal year thereafter. 
Ante, p. 1314. 
Effective date. 
42 u s e 654 note. 
REQUIREMENT THAT AVAILABIUTY OF CHILD SUPPORT ENFORCEMENT 
SERVICES BE PUBLICIZED 
SEC. 14. (a) Section 454 of the Social Security Act (as amended by 
the preceding provisions of this Act) is further amended— 
(1) by striking out "and" at the end of paragraph (21); 
(2) by striking out the period at the end of paragraph (22) and 
inserting in lieu thereof "; and"; and 
(3) by inserting immediately after paragraph (22) the follow-
ing new paragraph: 
"(23) provide that the State will regularly and frequently 
publicize, through public service announcements, the availabil-
ity of child support enforcement services under the plan and 
otherwise, including information as to any application fees for 
such services and a telephone number or postal address at 
which further information may be obtained.". 
(b) The amendments made by subsection (a) shall become effective 
October 1,1985. 
42 u s e 654 note. 
42 u s e 601, 651. 
Report. 
Public 
availability. 
STATE COMMISSIONS ON CHILD SUPPORT 
SEC. 15. (a) As a condition of the State's eligibility for Federal 
payments under part A or D of title IV of the Social Security Act for 
quarters beginning more than 30 days after the date of the enact-
ment of this Act and ending prior to October 1, 1985, the Governor 
of each State, on or before December 1, 1984, shall (subject to 
subsection (f)) appoint a State Commission on Child Support. 
03) Each State Commission appointed under subsection (a) shall be 
composed of members appropriately representing all aspects of the 
child support system, including custodial and non-custodial parents, 
the agency or organizational unit administering the State's plan 
under part D of such title IV, the State judiciary, the executive and 
legislative branches of the State government, child welfare and 
social services agencies, and others. 
(c) It shall be the function of each State Commission to examine, 
investigate, and study the operation of the State's child support 
system for the primary purpose of determining the extent to which 
such system has been successful in securing support and parental 
involvement both for children who are eligible for aid under a State 
plan approved under part A of title IV of such Act and for children 
who are not eligible for such aid, giving particular attention to such 
specific problems (among others) as visitation, the establishment 
of appropriate objective standards for support, the enforcement of 
interstate obligations, the availability, cost, and 
effectiveness 
of services both to children who are eligible for such aid and to 
children who are not, and the need for additional State or Federal 
legislation to obtain support for all children. 
(d) Each State Commission shall submit to the Governor of the 
State and make available to the public, no later than October 1, 
1985, a full and complete report of its findings and recommendations 
resulting from the examination, investigation, and study under this 
PUBLIC LAW 98-378—AUG. 16, 1984 
98 STAT. 1321 
section. The Governor shall transmit such report to the Secretary of 
Health and Human Services along with the Governor's comments 
thereon. 
(e) None of the costs incurred in the establishment and operation 
of a State Commission under this section, or incurred by such a 
Commission in carrying out its functions under subsections (c) and 
(d), shall be considered as expenditures qualifying for Federal pay-
ments under part A or D of title IV of the Social Security Act or be 42 USC 601, 651. 
otherwise payable or reimbursable by the United States or any 
agency thereof. 
(f) If the Secretary determines, at the request of any State on the 
basis of information submitted by the State and such other informa-
tion as may be available to the Secretary, that such State— 
(1) has placed in effect and is implementing objective stand-
ards for the determination and enforcement of child support 
obligations, 
(2) has established within the five years prior to the enact- Ante, p. 1305. 
ment of this Act a commission or council with substantially the 
same functions as the State Commissions provided for under 
this section, or 
(3) is making satisfactory progress toward fully effective child 
support enforcement and will continue to do so, 
then such State shall not be required to establish a State Commis-
sion under this section and the preceding provisions of this section 
shall not apply. 
INCLUSION OF MEDICAL SUPPORT IN CHILD SUPPORT ORDERS 
SEC. 16. Section 452 of the Social Security Act is amended by 42 use 652. 
adding at the end thereof the following new subsection: 
"(f) The Secretary shall issue regulations to require that State Regulations. 
agencies administering the child support enforcement program 
under this part petition for the inclusion of medical support as part 
of any child support order whenever health care coverage is avail-
able to the absent parent at a reasonable cost. Such regulation shall 
also provide for improved information exchange between such State 
agencies and the State agencies administering the State medicaid 
programs under title XIX with respect to the availability of health 42 usc 1396. 
insurance coverage.". 
INCREASED AVAILABILITY OF FEDERAL PARENT LOCATOR SERVICE TO 
STATE AGENCIES 
SEC. 17. Section 453(f) of the Social Security Act is amended by 42 use 653. 
striking out ", after determining that the absent parent cannot be 
located through the procedures under the control of such State 
agencies,". 
STATE GUIDELINES FOR CHILD SUPPORT AWARDS 
SEC. 18. (a) Part D of title IV of the Social Security Act (as 
amended by section 3(b) of this Act) is further amended by adding at 
the end thereof the following new section: 
Ante, p. 1306. 
STATE GUIDELINES FOR CHILD SUPPORT AWARDS 
"SEC. 467. (a) Each State, as a condition for having its State plan 42 use 667. 
approved under this part, must establish guidelines for child support 
31-194 - 0 - 86 - 6 : QL. 3 Part 2 
98 STAT. 1322 
PUBLIC LAW 98-378—AUG. 16, 1984 
Effective date. 
42 u s e 667 note. 
award amounts within the State. The guidelines may be established 
by law or by judicial or administrative action. 
"(b) The guidelines established pursuant to subsection (a) shall be 
made available to all judges and other officials who have the power 
to determine child support awards within such State, but need not 
be binding upon such judges or other officials. 
"(c) The Secretary shall furnish technical assistance to the States 
for establishing the guidelines, and each State shall furnish the 
Secretary with copies of its guidelines.". 
(b) The amendment made by subsection (a) shall become effective 
on October 1,1987. 
AVAILABIUTY OF SOCIAL SECURITY NUMBERS FOR CHILD SUPPORT 
ENFORCEMENT PURPOSES 
42 use 653. 
SEC. 19. (a) Section 453(b) of the Social Security Act is amended by 
inserting "the social security account number (or numbers, if the 
individual involved has more than one such number) and" before 
LIIG mos^ rGCGut S-ddrGSS 
2
6 use 6103. 
(b)(1) Section 6103(l)(6)(A)(i) of the Internal Revenue Code of 1954 
is amended by inserting "social security account number (or num-
bers, if the individual involved has more than one such number)," 
before "address". 
Ante, p. 820. 
(2) Section 6103(1)(8)(A) of such Code is amended by inserting 
"social security account numbers," before "net earnings". 
42 u s e 606. 
42 u s e 651. 
42 u s e 1396. 
Effective date. 
42 u s e 606 note. 
Supra. 
Ante, p. 1104. 
42 u s e 1396a. 
EXTENSION OF ELIGIBILITY UNDER TITLE XIX WHEN SUPPORT COLLECTION 
RESULTS IN TERMINATION OF AFDC EUGIBIUTY 
SEC. 20. (a) Section 406 of the Social Security Act is amended by 
adding at the end thereof the following new subsection: 
"(h) Each dependent child, and each relative with whom such a 
child is living (including the spouse of such relative as described in 
subsection (b)), who becomes ineligible for aid to families with 
dependent children as a result (wholly or partly) of the collection or 
increased collection of child or spousal support under part D, and 
who has received such aid in at least three of the six months 
immediately preceding the month in which such ineligibility begins, 
shall be deemed to be a recipient of aid to families with dependent 
children for purposes of title XIX for an additional four calendar 
months beginning with the month in which such ineligibility 
begins.". 
(b) The amendment made by subsection (a) shall apply only with 
respect to individuals becoming ineligible for aid to families with 
dependent children (as described in section 406(h) of the Social 
Security Act as added by such subsection) on or after the date of the 
enactment of this Act and before October 1,1988. 
(c) Section 1902(aX10)(A)(i)(I) of such Act is amended by inserting 
"or 406(h)" after "402(a)(37)". 
COLLECTION OF PAST-DUE SUPPORT FROM FEDERAL TAX REFUNDS 
42 use 664. 
SEC. 21. (a) Section 464(a) of the Social Security Act (as amended 
by section 12(d) of this Act) is further amended by inserting "(1)" 
after "SEC. 464. (a)" and by adding at the end thereof the following 
new paragraphs: 
A € i - i f 
PUBLIC LAW 98-378—AUG. 16, 1984 
98 STAT. 1323 
"(2)(A) Upon receiving notice from a State agency administering a 
plan approved under this part that a named individual owes past-
due support (as that term is defined for purposes of this paragraph 
under subsection (c)) which such State has agreed to collect under 
section 454(6), and that the State agency has sent notice to such Ante, p. 1310, 
individual in accordance with paragraph (3)(A), the Secretary of the i^^^-
Treasury shall determine whether any amounts, as refunds of Fed- 
' P" 
eral taxes paid, are payable to such individual (regardless of 
whether such individual filed a tax return as a married or unmar-
ried individual). If the Secretary of the Treasury finds that any such 
amount is payable, he shall withhold from such refunds an amount 
, ,\. -
equal to such past-due support, and shall concurrently send notice to 
such individual that the withholding has been made, including in or 
with such notice a notification to any other person who may have 
filed a joint return with such individual of the steps which such 
other person may take in order to secure his or her proper share of 
the refund. The Secretary of the Treasury shall pay the amount 
withheld to the State agency, and the State shall pay to the Secre- 
:-':-T ,1 
tary of the Treasury any fee imposed by the Secretary of the 
Treasury to cover the costs of the withholding and any required 
notification. The State agency shall, subject to paragraph (3)(B), 
distribute such amount to or on behalf of the child to whom the 
support was owed. 
"(B) This paragraph shall apply only with respect to refunds Effective date. 
payable under section 6402 of the Internal Revenue Code of 1954 ^nte, p. 1154. 
after December 31, 1985, and before January 1, 1991. 
"(3)(A) Prior to notifying the Secretary of the Treasury under 
paragraph (1) or (2) that an individual owes past-due support, the 
State shall send notice to such individual that a withholding will be 
made from any refund otherwise payable to such individual. The 
notice shall also (i) instruct the individual owing the past-due sup-
port of the steps which may be taken to contest the State's determi- 
i > M 
nation that past-due support is owed or the amount of the past-due 
support, and (ii) provide information, as may be prescribed by the 
Secretary of Health and Human Services by regulation in consulta-
tion with the Secretary of the Treasury, with respect to procedures 
to be followed, in the case of a joint return, to protect the share of 
the refund which may be payable to another person. 
"(B) If the Secretary of the Treasury determines that an amount 
should be withheld under paragraph (1) or (2), and that the refund 
from which it should be withheld is based upon a joint return, the 
Secretary of the Treasury shall notify the State that the withholding 
is being made from a refund based upon a joint return, and shall 
furnish to the State the names and addresses of each taxpayer filing 
such joint return. In the case of a withholding under paragraph (2), 
the State may delay distribution of the amount withheld until the 
State has been notified by the Secretary of the Treasury that the 
other person filing the joint return has received his or her proper 
share of the refund, but such delay may not exceed six months. 
"(C) If the other person filing the joint return with the named 
individual owing the past-due support takes appropriate action to 
secure his or her proper share of a refund from which a withholding 
was made under paragraph (1) or (2), the Secretary of the Treasury 
> 
shall pay such share to such other person. The Secretary of the 
Treasury shall deduct the amount of such payment from amounts 
subsequently payable to the State agency to which the amount 
originally withheld from such refund was paid. 
98 STAT. 1324 
PUBLIC LAW 98-378—AUG. 16, 1984 
"(D) In any case in which an amount was withheld under para-
graph (1) or (2) and paid to a State, and the State subsequently 
determines that the amount certified as past-due support was in 
excess of the amount actually owed at the time the amount withheld 
is to be distributed to or on behalf of the child, the State shall pay 
the excess amount withheld to the named individual thought to 
have owed the past-due support (or, in the case of amounts withheld 
on the basis of a joint return, jointly to the parties filing such 
return).". 
(b)(1) Section 464(a)(1) of such Act (as redesignated by subsection 
Ante, p. 1322. 
(a) of this section) is amended by striking out "and pay" in the 
second sentence and inserting in lieu thereof the following: "shall 
concurrently send notice to such individual that the withholding has 
been made (including in or with such notice a notification to any 
other person who may have filed a joint return with such individual 
of the steps which such other person may take in order to secure his 
or her proper share of the refund), and shall pay". 
42 use 664. 
(2) Section 464(b) of such Act is amended— 
(A) by inserting "(1)" after "(b)"; 
(B) by striking out "The regulations shall specify" in the 
second sentence and inserting in lieu thereof "The regulations 
shall be consistent with the provisions of subsection (a)(3), shall 
specify"; 
(C) by striking out "and provide" and inserting in lieu thereof 
"and shall provide"; 
(D) by adding at the end of paragraph (1) as so redesignated 
the following: "Any fee paid to the Secretary of the Treasury 
pursuant to this subsection may be used to reimburse appro-
priations which bore all or part of the cost of applying such 
procedure."; and 
(E) by adding at the end thereof the following new paragraph: 
Ante, p. 1322. 
"(2) In the case of withholdings made under subsection (a)(2), the 
regulations promulgated pursuant to this subsection shall include 
the following requirements: 
"(A) The withholding shall apply only in the case where the 
State determines that the amount of the past-due support which 
will be owed at the time the withholding is to be made, based 
upon the pattern of payment of support and other enforcement 
actions being pursued to collect the past-due support, is equal to 
or greater than $500. The State may limit the $500 threshhold 
amount to amounts of past-due support accrued since the time 
that the State first began to enforce the child support order 
involved under the State plan, and may limit the application of 
the withholding to past-due support accrued since such time. 
"(B) The fee which the Secretary of the Treasury may impose 
to cover the costs of the withholding and notification may not 
exceed $25 per case submitted.". 
42 use 664. 
(c) Section 464(c) of such Act is amended— 
(1) by striking out "(c) As used in this part" and inserting in 
lieu thereof "(cXD Except as provided in paragraph (2), as used 
in this part"; and 
(2) by adding at the end thereof the following new paragraph: 
Ante, p. 1322. 
"(2) For purposes of subsection (a)(2), the term 'past-due support' 
means only past-due support owed to or on behalf of a minor child.". 
(d) Section 454(6) of the Social Security Act (as amended by section 
Ante, p. 1307. 
3(c) of this Act) is further amended— 
(1) by redesignating clause (C) as clause (D); 
PUBLIC LAW 98-378—AUG. 16, 1984 
98 STAT. 1325 
(2) by striking out "fee so imposed" in clause (D) as so 
redesignated and inserting in lieu thereof "fees so imposed"; 
and 
(3) by striking out ", and" at the end of clause (B) and 
inserting in lieu thereof ", (C) a fee of not more than $25 may be 
imposed in any case where the State requests the Secretary of 
the Treasury to withhold past-due support owed to or on behalf 
of such individual from a tax refund pursuant to section 
464(a)(2), and". 
Ante, p. 1322. 
(e)(1) Section 6402(c) of the Internal Revenue Code of 1954 is 26 use 6402. 
amended— 
(A) by striking out "to which such support has been assigned" 
and inserting in lieu thereof "collecting such support"; and 
(B) by inserting before the last sentence thereof the following: 
"A reduction under this subsection shall be applied first to 
satisfy any past-due support which has been assigned to the 
State under section 402(a)(26) or 471(a)(17) of the Social Security 
Act, and shall be applied to satisfy any other psist-due support 42 use 602. 
after any other reductions allowed by law (but before a credit ^nte, p. 1318. 
against future liability for an internal revenue tax) have been 
made.". 
(2) Section 6402 of such Code (as amended by section 2653 of the Ante, p. 1154. 
Deficit Reduction Act of 1984) is further amended by redesignating 
subsection (g) as subsection (h), and by inserting after subsection (f) 
the following new subsection: 
"(g) TREATMENT OF PAYMENTS TO STATES.—The Secretary 
may 
provide that, for purposes of determining interest, the payment of 
any amount withheld under subsection (c) to a State shall be treated 
as a payment to the person or persons making the overpayment.". 
(fKl) Section 6103(1) of such Code (as so amended) is further 
Ante, p. 1155 
amended by adding at the end thereof the following new paragraph: 
"(11) DISCLOSURE OF CERTAIN INFORMATION TO AGENCIES RE- Supra. 
QUESTING A REDUCTION UNDER SECTION 6402(c).— 
- i 1
^ 
"(A) 
RETURN INFORMATION FROM INTERNAL REVENUE 
SERVICE.—The Secretary shall, upon receiving a written 
request, disclose to officers and employees of a State agency 
[ 
seeking a reduction under section 6402(c)— 
"(i) the fact that a reduction has been made or has 
not been made under such subsection with respect to 
any taxpayer; 
"(ii) the amount of such reduction; 
"(iii) whether such taxpayer filed a joint return; 
t 
"(iv) taxpayer identity information with respect to 
the taxpayer against whom a reduction was made or 
not made and of any other person filing a joint return 
with such taxpayer; and 
"(v) the fact that a pajmient was made (and the 
amount of the payment) on the basis of a joint return in 
accordance with section 464(a)(3) of the Social Security Ante, p. 1322. 
Act. 
"(B) RESTRICTION ON USE OF DISCLOSED INFORMATION.— 
Any officers and employees of an agency receiving return 
information under subparagraph (A) shall use such infor-
mation only for the purposes of, and to the extent necessary 
in, establishing appropriate agency records or in the 
defense of any litigation or administrative procedure ensu-
ing from a reduction made under section 6402(c).". 
Supra. 
98 STAT. 1326 
PUBLIC LAW 98-378—AUG. 16, 1984 
Ante, p. 1155. 
Ante, p. 1155. 
Ante, p. 1156. 
Ante, p. 1156. 
Effective date. 
26 u s e 6103 
note. 
Ante, p. 1325. 
Waiver. 
42 u s e 602 note. 
42 u s e 601, 651. 
42 u s e 607. 
42 u s e 606. 
Public 
availability. 
42 u s e 601, 651. 
Medical 
assistance 
eligibility. 
42 u s e 1396. 
42 u s e 601. 
Reports. 
Audit. 
Public 
availability. 
(2) Section 6103(p)(3)(A) of such Code (as so amended) is further 
amended by striking out "or (10)" and inserting in lieu thereof "(10), 
or (11)". 
(3) Section 6103(p)(4) of such Code (as so amended) is further 
amended by striking out "or (10)" and inserting in lieu thereof "(10), 
or (11)". 
(4) Section 6103(p)(4)(F)(ii) of such Code (as so amended) is further 
amended by striking out "or (10)" and inserting in lieu thereof "(10), 
or (11)". 
(5) Section 7213(a)(2) of such Code (as so amended) is further 
amended by striking out "or (10)" and inserting in lieu thereof "(10), 
or (11)". 
(g) The amendments made by this section shall apply with respect 
to refunds payable under section 6402 of the Internal Revenue Code 
of 1954 after December 31,1985. 
WISCONSIN CHILD SUPPORT INITIATIVE 
SEC. 22. (a)(1) If the State of Wisconsin requests the Secretary of 
Health and Human Services to waive the requirements of parts A 
and D of title IV of the Social Security Act, or to waive the 
requirements of part D and only those requirements of part A of 
such Act as relate to the provision of aid to dependent children as 
defined (without regard to section 407) in section 406(a) of the Social 
Security Act (hereafter referred to in this section as "dependent 
children in single-parent families"), in order to permit the State to 
make an adequate test in any county or counties, or throughout the 
State, of its Child Support Initiative, the Secretary shall waive such 
requirements i
f
— 
(A) the State provides a complete description, in accordance 
with paragraph (2), of the program, known as the Initiative, 
which it will operate in place of the programs under such parts 
A and D, and makes the description readily available to the 
public throughout the State; 
(B) the Governor provides assurances that, under the Initia-
tive, assistance will be provided to all children in need of 
financial support, and the State will continue to operate an 
effective child support enforcement program; 
(C) the State agrees that, during the conduct of such test, it 
will continue to determine eligibility for medical assistance 
under the State plan approved under title XIX of the Social 
Security Act, applying the criteria (insofar as may be applicable 
to members of families with dependent children affected by the 
Initiative) in effect under its State plan approved under part A 
of title IV for the month preceding the month in which the 
Initiative (approved under this section) becomes effective, 
except that such criteria shall be deemed to have been changed 
to the extent necessary to comply with generally applicable 
changes in Federal law or regulations occurring after the date 
of the enactment of this Act; 
(D) the State specifies measurable performance objectives, 
submits an evaluation plan (including criteria for evaluating 
the Initiative), and agrees to submit interim and final evalua-
tions and reports, at such time or times and containing such 
information, as the Secretary may require; and 
(E) the State agrees to obtain, at least once every two years, a 
financial and compliance audit of the funds received under this 
PUBLIC LAW 98-378—AUG. 16, 1984 
98 STAT. 1327 
section and to obtain, after the close of the operation of the 
Initiative under this section, such an audit and make it public 
within the State on a timely basis and provide a copy to the 
Secretary within 80 days after its completion. 
(2) The program description provided under paragraph (IXA) shall 
describe in detail how the proposed Initiative will affect children 
and families, with specific reference to the principles for calculating 
benefits and establishing and enforcing child support obligations. 
The description shall also include estimates of cost and program 
effects and provide other relevant information necessary for the 
Secretary to determine whether the financial well-being of children 
and their families will be adversely affected by the operation of the 
Initiative. 
(b) The Child Support Initiative proposed by the State of Wiscon- Effective date. 
sin as detailed in the program description submitted to the Secre-
tary, and the related requested waivers, shall become effective 
within 120 days after its submission unless the Secretary deter-
mines that the financial well-being of children in the State will be 
adversely affected by the Initiative. The Secretary shall notify the 
State in writing that, effective with the beginning of the following 
quarter (or of such later quarter £is the State may select), the State 
may operate its Child Support Initiative instead of its programs of 
aid to families with dependent children (or, if the State had so 
requested, instead of its program of aid to dependent children in 
single-parent families) and child support enforcement in such 
county or counties, or on a statewide basis, as the State has indi-
cated in its request. Except as specifically provided in subsection (c), 
no amount will be payable for any quarter under section 403(a) (or 42 use 603. 
under section 403(a) with respect to single-parent families, if the 
State had so requested), 455(a), or 458 of the Social Security Act with Ante, pp. 1311, 
respect to such county or counties in which the Initiative is in effect. 1312. 
(c)(1) For each quarter during which such program is in effect 
throughout the State, the Secretary will pay to the State the sum of 
its proportionate share (as defined in paragraph (4XA)) of each of the 
following: 
(A) the amount advanced by the Secretary to all the other 
States (as defined in section 1101(a) of the Social Security Act) 42 use I30i. 
for such quarter with respect to section 403(a) (1) and (2) of such 42 use 603. 
Act; 
(B) the amount so advanced by the Secretary with respect to 
section 403(aX3) of such Act; 
(C) the amount so advanced by the Secretary with respect to Ante, p. I3ii. 
' 
section 455(a) of such Act; and 
(D) the amount so advanced by the Secretary with respect to Ante, p. 1312. 
section 458(a) of such Act, 
reduced by so much of its proportionate share of support collections 
on behalf of individuals receiving aid to families with dependent 
children (as defined in paragraph (4XB)) as would have been credited 
to the Federal Government under section 457(b) of such Act had Ante, p. 1318. 
such collections been made in the last quarter of fiscal year 1986. 
(2) If in any quarter the Initiative approved under this section is 
in operation in fewer than all the counties in the State, the amount 
paid to the State with respect to the counties to which the waiver 
under subsection (a) applies shall equal (in lieu of the amount 
specified in paragraph (1)) the proportionate share with respect to 
the counties in which the Initiative is operated (as defined in 
paragraph (5)(A)) of the amount advanced to the State under the 
98 STAT. 1328 
PUBLIC LAW 98-378—AUG. 16, 1984 
four authorities specified in paragraph (1) with respect to all the 
other counties for such quarter, reduced by so much of the propor-
tionate share of support collections (as defined in paragraph (5)(B)) 
with respect to the counties in which the Initiative is operated, as 
would have been credited to the Federal Government under section 
Ante, p. 1318. 
457(b) of such Act had such collections been made in the last quarter 
of fiscal year 1986. 
(3) Payment under this subsection shall be estimated by the 
Secretary before the beginning of each quarter during which the 
Initiative is in effect on the basis of the advances made under parts 
42 use 601, 651. A and D of title IV of the Social Security Act for such quarter, and 
the Secretary shall make pajmients for such quarter on a monthly 
basis (with each payment made no later than the beginning of the 
month involved), in the amounts so estimated, and adjusted as 
necessary to reflect the amount of any previously made overpay-
ment or underpayment under this section. Payment of any amount 
determined with respect to paragraphs (1)(A) and (1)(B) shall be 
made from amounts appropriated to carry out part A of title IV of 
the Social Security Act for the appropriate fiscal year; payment of 
any amount determined with respect to paragraphs (1)(C) and (1)(D) 
shall be made from amounts appropriated to carry out part D of title 
IV of the Social Security Act. 
(4)(A) The State's proportionate share of each amount enumerated 
in paragraph (1) shall be the portion of such amount that bears the 
same ratio to such amount as the corresponding portion advanced to 
the State for quarters in fiscal years 1984 through 1986 bears to the 
total corresponding amount advanced to all the other States for such 
quarters. 
(B) The State's proportionate share of support collections means 
the amount that bears the same ratio to such collections on behalf of 
individuals receiving aid to families with dependent children by all 
the other States for the quarter involved as such collections by the 
State for quarters in fiscal years 1984 through 1986 bear to the total 
of such collections by all the other States for such quarters. 
(5)(A) The proportionate share with respect to the counties in 
which the Initiative is operated, in the case of— 
(i) the amount advanced to the State with respect to all other 
42 use 603. 
counties under section 403(a)(1) of the Social Security Act; 
(ii) the amount so advanced under section 403(a)(3) of such 
Act; 
Ante, p. 1311. 
(iii) the amount so advanced under section 455(a) of such Act; 
and 
(iv) the amount so advanced with respect to section 458(a) of 
Ante, p. 1312. 
SUCh Act, 
is the sum of such amounts, each having been multiplied by the 
ratio of (I) the corresponding amount advanced with respect to such 
counties for all quarters in fiscal years 1984 through 1986 to (II) the 
corresponding amount advanced with respect to all the other coun-
ties in the State for all such quarters. 
(B) The proportionate share of support collections for any quarter, 
with respect to the counties in which the Initiative is operated, 
means the amount that bears the same ratio to such collections on 
behalf of individuals receiving aid to families with dependent chil-
dren with respect to all the other counties in the State for such 
quarter as such collections by such counties for quarters in fiscal 
years 1984 through 1986 bear to the total of such collections by all 
the other counties in the State for such quarters. 
PUBLIC LAW 98-378—AUG. 16, 1984 
98 STAT. 1329 
(6) If the State requests, under subsection (a), waiver of only those 
requirements under part A of title IV of the Social Security Act as 42 use 60i. 
relate to the provision of aid to dependent children in single-parent 
families, and continues to operate its program of aid to families with 
dependent children deprived by reason of the unemployment of a 
parent— 
(A) the State's proportionate share of the amount specified in 
paragraph (IXA) (and only that amount) shall be computed 
under paragraph (4) by application of the ratio of (i) the amount 
advanced to the State, under section 403(aXl) of the Social 
Security Act for quarters in fiscal years 1984 through 1986 with 42 use 603. 
respect to expenditures in the form of aid to dependent children 
in single-parent families, to (ii) the amount advanced to all the 
other States, under section 403(a) (1) and (2) of such Act with 
respect to such expenditures, rather than by application of the 
ratio specified in paragraph (4); and 
(B) part A of title IV of such Act shall continue to apply to the 42 use 601. 
State's program of aid to families with dependent children 
deprived by reason of the unemplo3nnent of a parent; except 
that section 403(a)(3) shall not apply during the period that, or 42 use 603. 
in the part or parts of the State where, the Initiative is in effect, 
(d)(1) The State may cease to conduct the Initiative under this 
section and (if it so chooses) return to the administration of its plans 
approved under part A and part D of title IV of the Social Security 42 use 60i, 651. 
Act upon the provision to the Secretary of at least 3 months advance 
notice (or such greater advance notice as may be necessary so that 
administration of such plans will resume at the beginning of a 
quarter in the fiscal year). 
(2) The Secretary may terminate approval of the Initiative upon 
the giving of at least 3 months advance, notice (or such greater 
advance notice as may be necessary as specified in paragraph (1)) to 
the State if it is determined that the financial well-being of children 
in the State (or county or counties involved) would be better 
achieved by the operation of programs under part A and part D of 
title IV of the Social Security Act. 
(e) This section shall be in effect for quarters beginning after Effective date. 
September 30,1986, and ending before October 1,1994. 
SENSE OF THE CONGRESS THAT STATE AND LOCAL GOVERNMENTS 
SHOULD FOCUS ON THE PROBLEMS OF CHILD CUSTODY, CHILD SUP-
PORT, AND RELATED DOMESTIC ISSUES 
SEC. 23. (a) The Congress finds that— 
(1) the divorce rate in the United States has reached alarming 
proportions and the number of children being raised in single 
parent families has grown accordingly; 
(2) there is a critical lack of child support enforcement, which 
Congress has undertaken to address through the child support 
enforcement program; 
(3) Congress is strengthening that program to recognize the 
needs of all children; 
(4) related domestic issues, such as visitation rights and child 
custody, are often intricately intertwined with the child support 
problem and have received inadequate consideration; and 
(5) these related issues remain within the jurisdiction of State 
and local governments, but have a critical impact on the health 
and welfare of the children of the Nation. 
98 STAT. 1330 
PUBLIC LAW 98-878—AUG. 16, 1984 
(b) It is the sense of Congress that— 
(1) State and local governments must focus on the vital issues 
of child support, child custody, visitation rights, and other 
related domestic issues that are properly within the jurisdic-
tions of such governments; 
(2) all individuals involved in the domestic relations process 
should recognize the seriousness of these matters to the health 
and welfare of our Nation's children and assign them the 
highest priority; and 
(3) a mutual recognition of the needs of all parties involved in 
divorce actions will greatly enhance the health and welfare of 
America's children and families. 
Approved August 16, 1984. 
LEGISLATIVE HISTORY—H.R. 4325: 
HOUSE REPORTS: No. 98-527 (Comm. on Ways and Means) and No. 98-925 (Comm. 
of Conference). 
SENATE REPORT No. 98-387 (Comm. on Finance). 
CONGRESSIONAL RECORD: 
Vol. 129 (1983): Nov. 16, considered and passed House. 
Vol. 130 (1984): Apr. 25, considered and passed Senate, amended. 
Aug. 1, Senate agreed to conference report. 
Aug. 8, House agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 20, No. 33 (1984): 
Aug. 16, 1984, Presidential statement.