[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 321 Introduced in Senate (IS)]
109th CONGRESS
1st Session
S. 321
To provide more child support money to families leaving welfare, to
simplify the rules governing the assignment and distribution of child
support collected by States on behalf of children, to improve the
collection of child support, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 8, 2005
Ms. Snowe (for herself, Mr. Kohl, Mr. Rockefeller, and Ms. Landrieu)
introduced the following bill; which was read twice and referred to the
Committee on Finance
_______________________________________________________________________
A BILL
To provide more child support money to families leaving welfare, to
simplify the rules governing the assignment and distribution of child
support collected by States on behalf of children, to improve the
collection of child support, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Child Support Distribution Act of
2005''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I--DISTRIBUTION OF CHILD SUPPORT
Sec. 101. Distribution of child support collected by States on behalf
of children receiving certain welfare
benefits.
TITLE II--EXPANDED ENFORCEMENT
Sec. 201. Decrease in amount of child support arrearage triggering
passport denial.
Sec. 202. Use of tax refund intercept program to collect past-due
child support on behalf of children who are
not minors.
Sec. 203. Garnishment of compensation paid to veterans for service-
connected disabilities in order to enforce
child support obligations.
Sec. 204. Mandatory review and adjustment of child support orders for
families receiving TANF.
TITLE III--MISCELLANEOUS
Sec. 301. Report on undistributed child support payments.
Sec. 302. Use of new hire information to assist in administration of
unemployment compensation programs.
Sec. 303. Increase in payment rate to States for expenditures for
short-term training of staff of certain
child welfare agencies.
TITLE IV--EFFECTIVE DATE
Sec. 401. Effective date.
TITLE I--DISTRIBUTION OF CHILD SUPPORT
SEC. 101. DISTRIBUTION OF CHILD SUPPORT COLLECTED BY STATES ON BEHALF
OF CHILDREN RECEIVING CERTAIN WELFARE BENEFITS.
(a) Modification of Rule Requiring Assignment of Support Rights as
a Condition of Receiving TANF.--Section 408(a)(3) of the Social
Security Act (42 U.S.C. 608(a)(3)) is amended to read as follows:
``(3) No assistance for families not assigning certain
support rights to the state.--A State to which a grant is made
under section 403 shall require, as a condition of paying
assistance to a family under the State program funded under
this part, that a member of the family assign to the State any
right the family member may have (on behalf of the family
member or of any other person for whom the family member has
applied for or is receiving such assistance) to support from
any other person, not exceeding the total amount of assistance
so paid to the family, which accrues during the period that the
family receives assistance under the program.''.
(b) Increasing Child Support Payments to Families and Simplifying
Child Support Distribution Rules.--
(1) Distribution rules.--
(A) In general.--Section 457(a) of such Act (42
U.S.C. 657(a)) is amended to read as follows:
``(a) In General.--Subject to subsections (d) and (e), the amounts
collected on behalf of a family as support by a State pursuant to a
plan approved under this part shall be distributed as follows:
``(1) Families receiving assistance.--In the case of a
family receiving assistance from the State, the State shall--
``(A) pay to the Federal Government the Federal
share of the amount collected, subject to paragraph
(3)(A);
``(B) retain, or pay to the family, the State share
of the amount collected, subject to paragraph (3)(B);
and
``(C) pay to the family any remaining amount.
``(2) Families that formerly received assistance.--In the
case of a family that formerly received assistance from the
State:
``(A) Current support.--To the extent that the
amount collected does not exceed the current support
amount, the State shall pay the amount to the family.
``(B) Arrearages.--Except as otherwise provided in
an election made under 434(34), to the extent that the
amount collected exceeds the current support amount,
the State--
``(i) shall first pay to the family the
excess amount, to the extent necessary to
satisfy support arrearages not assigned
pursuant to section 408(a)(3);
``(ii) if the amount collected exceeds the
amount required to be paid to the family under
clause (i), shall--
``(I) pay to the Federal
Government, the Federal share of the
excess amount described in this clause,
subject to paragraph (3)(A); and
``(II) retain, or pay to the
family, the State share of the excess
amount described in this clause,
subject to paragraph (3)(B); and
``(iii) shall pay to the family any
remaining amount.
``(3) Limitations.--
``(A) Federal reimbursements.--The total of the
amounts paid by the State to the Federal Government
under paragraphs (1) and (2) of this subsection with
respect to a family shall not exceed the Federal share
of the amount assigned with respect to the family
pursuant to section 408(a)(3).
``(B) State reimbursements.--The total of the
amounts retained by the State under paragraphs (1) and
(2) of this subsection with respect to a family shall
not exceed the State share of the amount assigned with
respect to the family pursuant to section 408(a)(3).
``(4) Families that never received assistance.--In the case
of any other family, the State shall pay the amount collected
to the family.
``(5) Families under certain agreements.--Notwithstanding
paragraphs (1) through (3), in the case of an amount collected
for a family in accordance with a cooperative agreement under
section 454(33), the State shall distribute the amount
collected pursuant to the terms of the agreement.
``(6) State financing options.--To the extent that the
State's share of the amount payable to a family pursuant to
paragraph (2)(B) of this subsection exceeds the amount that the
State estimates (under procedures approved by the Secretary)
would have been payable to the family pursuant to former
section 457(a)(2)(B) (as in effect for the State immediately
before the date this subsection first applies to the State) if
such former section had remained in effect, the State may elect
to use the grant made to the State under section 403(a) to pay
the amount, or to have the payment considered a qualified State
expenditure for purposes of section 409(a)(7), but not both.
``(7) State option to pass-through additional support with
federal financial participation.--
``(A) Families that formerly received assistance.--
Notwithstanding paragraph (2)(B)(ii), a State shall not
be required to pay to the Federal Government the
Federal share of an amount collected on behalf of a
family that formerly received assistance under the
State program funded under part A, to the extent that
the State pays the amount to the family.
``(B) Recipients of tanf for less than 5 years.--
``(i) In general.--Notwithstanding
paragraph (1), in the case of a family that
includes an adult that has received assistance
from the State for not more than 5 years after
the date of enactment of this paragraph, a
State shall not be required to pay to the
Federal Government the Federal share of the
excepted portion (as defined in clause (ii)) of
any amount collected on behalf of such family
during a month to the extent that--
``(I) the State pays the excepted
portion to the family; and
``(II) the excepted portion is
disregarded in determining the amount
and type of assistance provided to the
family under such program.
``(ii) Excepted portion defined.--For
purposes of this subparagraph, the term
`excepted portion' means that portion of the
amount collected on behalf of a family during a
month that does not exceed $400 per month, or
in the case of a family that includes 2 or more
children, that does not exceed an amount
established by the State that is not more than
$600 per month.
``(8) States with demonstration waivers.--Notwithstanding
the preceding paragraphs, in the case of a State that, on the
date of enactment of this paragraph, has had in effect since
October 1, 1997, a waiver under section 1115 permitting pass-
through payments of child support collections--
``(A) the State may continue to distribute such
payments to families without regard to the expiration
date of such waiver; and
``(B) the requirement under paragraph (1) to pay to
the Federal Government the Federal share of the amount
collected on behalf of a family shall not apply to the
extent that--
``(i) the State distributes such amount to
the family; and
``(ii) such amount is disregarded in
determining the amount and type of assistance
paid to the family.''.
(B) State plan to include election as to which
rules to apply in distributing child support arrearages
collected on behalf of families formerly receiving
assistance.--Section 454 of such Act (42 U.S.C. 654) is
amended--
(i) by striking ``and'' at the end of
paragraph (32);
(ii) by striking the period at the end of
paragraph (33) and inserting ``; and''; and
(iii) by inserting after paragraph (33) the
following:
``(34) include an election by the State to apply section
457(a)(2)(B) of this Act or former section 457(a)(2)(B) of this
Act (as in effect for the State immediately before the date
this paragraph first applies to the State) to the distribution
of the amounts which are the subject of such sections, and for
so long as the State elects to so apply such former section,
the amendments made by paragraphs (1) and (2) of subsection (e)
of section 101 of the Child Support Distribution Act of 2005
shall not apply with respect to the State, notwithstanding
subsection (f)(1) of such section 101.''.
(C) Approval of estimation procedures.--Not later
than the date that is 6 months after the date of
enactment of this Act, the Secretary of Health and
Human Services, in consultation with the States (as
defined for purposes of part D of title IV of the
Social Security Act), shall establish the procedures to
be used to make the estimate described in section
457(a)(6) of such Act.
(2) Current support amount defined.--Section 457(c) of such
Act (42 U.S.C. 657(c)) is amended by adding at the end the
following:
``(5) Current support amount.--The term `current support
amount' means, with respect to amounts collected as support on
behalf of a family, the amount designated as the monthly
support obligation of the noncustodial parent in the order
requiring the support.''.
(c) Ban on Recovery of Medicaid Costs for Certain Births.--Section
454 of such Act (42 U.S.C. 654), as amended by subsection (b)(1)(B), is
amended--
(1) by striking ``and'' at the end of paragraph (33);
(2) by striking the period at the end of paragraph (34) and
inserting ``; and''; and
(3) by inserting after paragraph (34) the following:
``(35) provide that the State shall not use the State
program operated under this part to collect any amount owed to
the State by reason of costs incurred under the State plan
approved under title XIX for the birth of a child for whom
support rights have been assigned pursuant to section
408(a)(3), 471(a)(17), or 1912.''.
(d) State Option To Discontinue Older Support Assignments.--Section
457(b) (42 U.S.C. 657(b)) is amended to read as follows:
``(b) Continuation of Assignments.--
``(1) State option to discontinue pre-1997 support
assignments.--
``(A) In general.--Any rights to support
obligations assigned to a State as a condition of
receiving assistance from the State under part A and in
effect on September 30, 1997 (or such earlier date on
or after August 22, 1996, as the State may choose), may
remain assigned after such date.
``(B) Distribution of amounts after assignment
discontinuation.--If a State chooses to discontinue the
assignment of a support obligation described in
subparagraph (A), the State may treat amounts collected
pursuant to such assignment as if such amounts had
never been assigned and may distribute such amounts to
the family in accordance with subsection (a)(4).
``(2) State option to discontinue post-1997 assignments.--
``(A) In general.--Any rights to support
obligations accruing before the date on which a family
first receives assistance under part A that are
assigned to a State under that part and in effect
before the implementation date of this section may
remain assigned after such date.
``(B) Distribution of amounts after assignment
discontinuation.--If a State chooses to discontinue the
assignment of a support obligation described in
subparagraph (A), the State may treat amounts collected
pursuant to such assignment as if such amounts had
never been assigned and may distribute such amounts to
the family in accordance with subsection (a)(4).''.
(e) Conforming Amendments.--
(1) Section 404(a) of such Act (42 U.S.C. 604(a)) is
amended--
(A) by striking ``or'' at the end of paragraph (1);
(B) by striking the period at the end of paragraph
(2) and inserting ``; or''; and
(C) by adding at the end the following:
``(3) to fund payment of an amount pursuant to section
457(a)(2)(B), but only to the extent that the State properly
elects under section 457(a)(6) to use the grant to fund the
payment.''.
(2) Section 409(a)(7)(B)(i) of such Act (42 U.S.C.
609(a)(7)(B)(i)) is amended--
(A) in subclause (I)(aa), by striking
``457(a)(1)(B)'' and inserting ``457(a)(1)''; and
(B) by adding at the end the following:
``(V) Portions of certain child
support payments collected on behalf of
and distributed to families no longer
receiving assistance.--Any amount paid
by a State pursuant to section
457(a)(2)(B), but only to the extent
that the State properly elects under
section 457(a)(6) to have the payment
considered a qualified State
expenditure.''.
(3) Section 6402(c) of the Internal Revenue Code of 1986
(relating to offset of past-due support against overpayments)
is amended--
(A) in the first sentence, by striking ``the Social
Security Act.'' and inserting ``of such Act.''; and
(B) by striking the third sentence and inserting
the following: ``The Secretary shall apply a reduction
under this subsection first to an amount certified by
the State as past due support under section 464 of the
Social Security Act before any other reductions allowed
by law.''.
(f) Effective Date.--
(1) In general.--The amendments made by this section shall
take effect on October 1, 2008, and shall apply to payments
under parts A and D of title IV of the Social Security Act for
calendar quarters beginning on or after such date, and without
regard to whether regulations to implement such amendments (in
the case of State programs operated under such part D) are
promulgated by such date.
(2) State option to accelerate effective date.--In
addition, a State may elect to have the amendments made by this
section apply to the State and to amounts collected by the
State, on and after such date as the State may select that is
after the date of enactment of this Act and before October 1,
2008.
TITLE II--EXPANDED ENFORCEMENT
SEC. 201. DECREASE IN AMOUNT OF CHILD SUPPORT ARREARAGE TRIGGERING
PASSPORT DENIAL.
(a) In General.--Section 452(k)(1) of the Social Security Act (42
U.S.C. 652(k)(1)) is amended by striking ``$5,000'' and inserting
``$2,500''.
(b) Conforming Amendment.--Section 454(31) of the Social Security
Act (42 U.S.C. 654(31)) is amended by striking ``$5,000'' and inserting
``$2,500''.
SEC. 202. USE OF TAX REFUND INTERCEPT PROGRAM TO COLLECT PAST-DUE CHILD
SUPPORT ON BEHALF OF CHILDREN WHO ARE NOT MINORS.
Section 464 of the Social Security Act (42 U.S.C. 664) is amended--
(1) in subsection (a)(2)(A), by striking ``(as that term is
defined for purposes of this paragraph under subsection (c))'';
and
(2) in subsection (c)--
(A) in paragraph (1)--
(i) by striking ``(1) Except as provided in
paragraph (2), as used in'' and inserting
``In''; and
(ii) by inserting ``(whether or not a
minor)'' after ``a child'' each place it
appears; and
(B) by striking paragraphs (2) and (3).
SEC. 203. GARNISHMENT OF COMPENSATION PAID TO VETERANS FOR SERVICE-
CONNECTED DISABILITIES IN ORDER TO ENFORCE CHILD SUPPORT
OBLIGATIONS.
Section 459(h) of the Social Security Act (42 U.S.C. 659(h)) is
amended--
(1) in paragraph (1)(A)(ii)--
(A) in subclause (IV), by striking ``or'' after the
semicolon;
(B) in subclause (V), by inserting ``or'' after the
semicolon; and
(C) by adding at the end the following:
``(VI) subject to paragraph (3),
other than periodic benefits or
payments described in subclause (V), by
the Secretary of Veterans Affairs as
compensation for a service-connected
disability paid by the Secretary to a
former member of the Armed Forces;'';
and
(2) by adding at the end the following:
``(3) Limitations with respect to compensation paid to
veterans for service-connected disabilities.--
``(A) Alimony and child support.--Subject to
subparagraph (B), compensation described in paragraph
(1)(A)(ii)(VI) shall not be subject to withholding
pursuant to this section--
``(i) for payment of alimony; or
``(ii) for payment of child support if the
individual is fewer than 60 days in arrears in
payment of the support.
``(B) Limitation.--Not more than 50 percent of any
payment of compensation described in subparagraph (A)
may be withheld pursuant to this section.''.
SEC. 204. MANDATORY REVIEW AND ADJUSTMENT OF CHILD SUPPORT ORDERS FOR
FAMILIES RECEIVING TANF.
(a) In General.--Section 466(a)(10)(A)(i) of the Social Security
Act (42 U.S.C. 666(a)(10)(A)(i)) is amended in the matter preceding
subclause (I)--
(1) by striking ``parent, or,'' and inserting ``parent
or''; and
(2) by striking ``upon the request of the State agency
under the State plan or of either parent,''.
(b) Effective Date.--The amendments made by subsection (a) shall
take effect on October 1, 2007.
TITLE III--MISCELLANEOUS
SEC. 301. REPORT ON UNDISTRIBUTED CHILD SUPPORT PAYMENTS.
Not later than 6 months after the date of enactment of this Act,
the Secretary of Health and Human Services shall submit to the
Committee on Ways and Means of the House of Representatives and the
Committee on Finance of the Senate a report on the procedures that the
States use generally to locate custodial parents for whom child support
has been collected but not yet distributed. The report shall include an
estimate of the total amount of such undistributed child support and
the average length of time it takes for such child support to be
distributed. The Secretary shall include in the report recommendations
as to whether additional procedures should be established at the
Federal or State level to expedite the payment of undistributed child
support.
SEC. 302. USE OF NEW HIRE INFORMATION TO ASSIST IN ADMINISTRATION OF
UNEMPLOYMENT COMPENSATION PROGRAMS.
Section 453(j) of the Social Security Act (42 U.S.C. 653(j)) is
amended by adding at the end the following:
``(7) Information comparisons and disclosure to assist in
administration of unemployment compensation programs.--
``(A) In general.--If a State agency responsible
for the administration of an unemployment compensation
program under Federal or State law transmits to the
Secretary the name and social security account number
of an individual, the Secretary shall, if the
information in the National Directory of New Hires
indicates that the individual may be employed, disclose
to the State agency the name, address, and employer
identification number of any putative employer of the
individual, subject to this paragraph.
``(B) Condition on disclosure.--The Secretary shall
make a disclosure under subparagraph (A) only to the
extent that the Secretary determines that the
disclosure would not interfere with the effective
operation of the program under this part.
``(C) Use of information.--A State agency may use
information provided under this paragraph only for
purposes of administering a program referred to in
subparagraph (A).''.
SEC. 303. INCREASE IN PAYMENT RATE TO STATES FOR EXPENDITURES FOR
SHORT-TERM TRAINING OF STAFF OF CERTAIN CHILD WELFARE
AGENCIES.
Section 474(a)(3)(B) of the Social Security Act (42 U.S.C.
674(a)(3)(B)) is amended by inserting ``, or State-licensed or State-
approved child welfare agencies providing services,'' after ``child
care institutions''.
TITLE IV--EFFECTIVE DATE
SEC. 401. EFFECTIVE DATE.
(a) In General.--Except as otherwise provided in this Act, and
subject to subsection (b), this Act and the amendments made by this Act
shall take effect on October 1, 2005, and shall apply to payments under
part D of title IV of the Social Security Act for calendar quarters
beginning on or after such date, and without regard to whether
regulations to implement such amendments are promulgated by such date.
(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.
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