Requires every employer who receives such a certificate to deduct and withhold from the employee's wages an additional amount equal to the amount of such obligation.
Requires payment of child support obligations with the employee's income tax return.
Mandates treatment of such obligations as taxes for purposes of penalties and interest related to failure to deduct and withhold them.
Requires the Secretary of the Treasury to disburse amounts collected under this Act to the family for whom the employee is obligated to pay child support.
Repeals Federal law relating to State enforcement of child support obligations other than medical support.
Prescribes criminal penalties for willful failure to pay child support to the Internal Revenue Service.
Directs the Secretary of the Treasury to submit to Congress a plan for implementing this Act.
Directs the Attorney General to study and report to specified congressional committees on the impact of this Act on the Department of Justice and the Federal courts, including workload, personnel staffing, and budget resources.
[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 2288 Introduced in Senate (IS)]
106th CONGRESS
2d Session
S. 2288
To amend the Internal Revenue Code of 1986 and the Social Security Act
to repeal provisions relating to the State enforcement of child support
obligations and the disbursement of such support and to require the
Internal Revenue Service to collect and disburse such support through
wage withholding and other means.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 23, 2000
Mr. Abraham introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 and the Social Security Act
to repeal provisions relating to the State enforcement of child support
obligations and the disbursement of such support and to require the
Internal Revenue Service to collect and disburse such support through
wage withholding and other means.
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 ``Compassion for Children and Child
Support Enforcement Act of 1999''.
SEC. 2. FINDINGS.
The Congress finds the following:
(1) Over one quarter of the Nation's children live in a
household where only one of their parents is present.
(2) Forty percent of these children are not yet eligible
for child support because paternity has not been established or
a support order has not been issued.
(3) Sixty percent of these children have a support order,
but only half actually receive any support.
(4) Of those with orders, half receive the full amount
ordered, one-quarter receive some of the amount ordered; and
one-quarter receive nothing. The problem of nonpayment is
particularly acute in cases where the parents live in different
States. Today, approximately one-third of all cases are
interstate in nature.
(5) As a result, too many children live in poverty or near
poverty and are unable to have the kind of childhood which
allows them to grow into healthy, productive citizens. Studies
show that, in many families where child support is not paid,
children go hungry, lose access to health care, lack
appropriate winter clothing and can't participate in school
activities. Their families often face a housing crisis, and
inability to afford child care creates many latch-key children.
(6) To show compassion for these children by establishing
and enforcing child support awards for them is a high national
priority.
(7) To undertake this task would require a huge commitment
of judicial time and resources. While all cases take time and
resources, interstate cases involve the time and resources of
two or more jurisdictions and are, therefore, particularly
troubling.
(8) This commitment of resources would be unnecessary if
better, nonjudicial ways could be found for handling some of
these matters.
(9) The Department of the Treasury is in a unique position
to help address these problems. By taking over responsibility
for enforcing all child support orders through routine
withholding of support from obligated parents and use of the
enforcement tools at its disposal to collect from recalcitrant
obligors, the Department of the Treasury would greatly reduce
the need for judicial resources of the States that are now
devoted to child support enforcement.
(10) This, in turn, would free up judicial resources to
focus on establishing paternity and support orders and lead to
a vastly improved child support enforcement system.
(11) Moving child support enforcement responsibilities to
the Department of the Treasury will enhance the role of the
Federal judiciary and the Department of Justice in prosecuting
truly egregious cases of failure to pay child support.
SEC. 3. ASSIGNMENT TO INTERNAL REVENUE SERVICE OF RIGHT TO COLLECT
CHILD SUPPORT; AVAILABILITY OF CHILD SUPPORT INFORMATION
TO THE INTERNAL REVENUE SERVICE; NOTICE TO PARENTS OF
SUPPORT COLLECTION AND DISBURSEMENT OPTIONS.
(a) Assignment to Internal Revenue Service of Right To Collect
Child Support.--Section 466(a) of the Social Security Act (42 U.S.C.
666(a)) is amended by inserting after paragraph (19) the following:
``(20) Procedures which--
``(A) require any individual with the right to
collect child support pursuant to an order issued or
modified in the State (whether before or after the
effective date of this paragraph) to be presumed to
have assigned to the Internal Revenue Service the right
to collect such support, unless the individual
affirmatively elects to retain such right at any time;
and
``(B) allow any individual who has made the
election referred to in subparagraph (A) to rescind or
revive such election at any time.''.
(b) Transmission of Child Support Information to the Federal Case
Registry of Child Support Orders.--
(1) In general.--Section 466(a) of the Social Security Act
(42 U.S.C. 666(a)), as amended by subsection (a) of this
section, is amended by inserting after paragraph (20) the
following:
``(21)(A) Procedures which require any State court or
administrative agency that issues or modifies (or has issued or
modified) a child support order to transmit an abstract of the
order to the Federal Case Registry of Child Support Orders
established under section 453(h), on the later of--
``(i) the date the order is issued or modified; or
``(ii) the effective date of this paragraph.
``(B)(i) The abstract of a child support order shall
include a record of--
``(I) the amount of monthly (or other periodic)
support owed under the order, and other amounts
(including arrearages, interest or late payment
penalties, and fees) due or overdue under the order;
``(II) any amount described in subclause (I) that
has been collected by a State;
``(III) the distribution by a State of such
collected amounts;
``(IV) the birth date of any child for whom the
order requires the provision of support; and
``(V) any action which has been taken to enforce
the order.
``(ii) The abstract of a child support order shall use
standardized data elements for both parents (such as names,
social security numbers and other uniform identification
numbers, dates of birth, and case identification numbers), and
contain such other information (such as on case status) as the
Secretary may require.
``(C) Such procedures shall require the State agency
administering the State program under this part to notify the
Federal Case Registry of Child Support Orders of any expiration
of any child support order an abstract of which has been
transmitted by the State pursuant to subparagraph (A).''.
(2) Conforming amendment.--Section 453(h)(1) of such Act
(42 U.S.C. 653(h)(1)) is amended by striking ``abstracts of
support orders and other information described in paragraph (2)
with respect to each case in each State case registry
maintained pursuant to section 454A(e), as furnished (and
regularly updated), pursuant to section 454A(f), by State
agencies administering programs under this part'' and inserting
``child support order abstracts transmitted pursuant to section
466(a)(21) and other information described in paragraph (2)
with respect to each case in the registry''.
(c) Notice to Parents of Support Collection and Disbursement
Options.--Section 466(a)(20) of the Social Security Act (42 U.S.C.
666(a)(20)), as added by subsection (a) of this section, is amended--
(1) by striking ``and'' at the end of subparagraph (A);
(2) by striking the period at the end of subparagraph (B)
and inserting ``; and''; and
(3) by adding at the end the following:
``(C) require that, at the time a suport order is
issued or modified in the State, the parties to the
order are provided with notice of how collection and
disbursement of support pursuant to the order will be
made if the election referred to in subparagraph (A) is
not made, and to whom to address any complaints or
questions regarding such collections or
disbursements.''.
SEC. 4. COLLECTION AND DISBURSEMENT OF CHILD SUPPORT BY INTERNAL
REVENUE SERVICE.
(a) In General.--Chapter 77 of the Internal Revenue Code of 1986
(relating to miscellaneous provisions) is amended by adding at the end
thereof the following new sections:
``SEC. 7527. COLLECTION OF CHILD SUPPORT.
``(a) Employee To Notify Employer of Child Support Obligation.--
``(1) In general.--Each employee shall specify, on each
withholding certificate furnished to such employee's employer--
``(A) the monthly amount (if any) of each child
support obligation of such employee, and
``(B) the TIN of the individual to whom each such
obligation is owed.
``(2) When certificate filed.--In addition to the other
required times for filing a withholding certificate, a new
withholding certificate shall be filed within 30 days after the
date of any court or administrative order which changes the
information specified under paragraph (1).
``(3) Period certificate in effect.--Any specification
under paragraph (1) shall continue in effect until another
withholding certificate takes effect which specifies a change
in the information specified under paragraph (1).
``(4) Authority to specify smaller child support amount.--
In the case of an employee who is employed by more than 1
employer for any period, such employee may specify less than
the monthly amount described in paragraph (1)(A) to each such
employer so long as the total of the amounts specified to all
such employers is not less than such monthly amount.
``(b) Certain Obligations Exempt.--This section shall not apply to
a child support obligation for any month if the individual to whom such
obligation is owed has so notified the Secretary and the individual
owing such obligation more than 30 business days before the beginning
of such month.
``(c) Employer Obligations.--
``(1) Requirement to deduct and withhold.--
``(A) In general.--Every employer who receives a
certificate under subsection (a) that specifies that
the employee has a child support obligation for any
month shall deduct and withhold from the wages (as
defined in section 3401(a)) paid by such employer to
such employee during each month that such certificate
is in effect an additional amount equal to the amount
of such obligation or such other amount as may be
specified by the Secretary under subsection (d).
``(B) Limitation on aggregate withholding.--In no
event shall an employer deduct and withhold under this
section from a payment of wages an amount in excess of
the amount of such payment which would be permitted to
be garnished under section 303(b) of the Consumer
Credit Protection Act.
``(2) Notice to secretary.--
``(A) In general.--Every employer who receives a
withholding certificate shall, within 30 business days
after such receipt, submit a copy of such certificate
to the Secretary.
``(B) Exception.--Subparagraph (A) shall not apply
to any withholding certificate if--
``(i) a previous withholding certificate is
in effect with the employer, and
``(ii) the information shown on the new
certificate with respect to child support is
the same as the information with respect to
child support shown on the certificate in
effect.
``(3) When withholding obligation takes effect.--Any
withholding obligation with respect to a child support
obligation of an employee shall commence with the first payment
of wages after the certificate is furnished.
``(d) Secretary To Verify Amount of Child Support Obligation.--
``(1) Verification of information specified on withholding
certificates.--Within 20 business days after receiving a
withholding certificate of any employee, or a notice from any
person claiming that an employee is delinquent in making any
payment pursuant to a child support obligation, the Secretary
shall determine whether the information available to the
Federal Case Registry of Child Support Orders established under
section 453(h) of the Social Security Act indicates that such
employee has a child support obligation.
``(2) Employer notified if increased withholding is
required.--If the Secretary determines that an employee's child
support obligation is greater than the amount (if any) shown on
the withholding certificate in effect with respect to such
employee, the Secretary shall, within 20 business days after
such determination, notify the employer to whom such
certificate was furnished of the correct amount of such
obligation, and such amount shall apply in lieu of the amount
(if any) specified by the employee with respect to payments of
wages by the employer after the date the employer receives such
notice.
``(3) Determination of correct amount.--In making the
determination under paragraph (2), the Secretary shall take
into account whether the employee is an employee of more than 1
employer and shall appropriately adjust the amount of the
required withholding from each such employer.
``(e) Child Support Obligations Required To Be Paid With Income Tax
Return.--
``(1) In general.--The child support obligation of any
individual for months ending with or within any taxable year
shall be paid--
``(A) not later than the last date (determined
without regard to extensions) prescribed for filing his
return of tax imposed by chapter 1 for such taxable
year, and
``(B)(i) if such return is filed not later than
such date, with such return, or
``(ii) in any case not described in clause (i), in
such manner as the Secretary may by regulations
prescribe.
``(2) Credit for amount previously paid.--The amount
required to be paid by an individual under paragraph (1) shall
be reduced by the sum of--
``(A) the amount collected under this section with
respect to periods during the taxable year, plus
``(B) the amount (if any) paid by such individual
under section 6654 by reason of subsection (f)(3)
thereof for such taxable year.
``(f) Failure To Pay Amount Owing.--
``(1) Collection authority.--If an individual fails to pay
the full amount required to be paid under subsection (e) on or
before the due date for such payment, the Secretary shall
assess and collect the unpaid amount in the same manner, with
the same powers, and subject to the same limitations applicable
to a tax imposed by subtitle C the collection of which would be
jeopardized by delay.
``(2) Shortfall in payments.--For purposes of paragraph (1)
and subsection (i), if the taxpayer would have a deficiency for
the taxable year were the amount required to be paid under
subsection (e) treated as tax imposed by chapter 1, such
deficiency shall be treated as attributable to a failure to pay
the full amount required to be paid under subsection (e) to the
extent thereof.
``(g) Credit or Refund for Withheld Child Support in Excess of
Actual Obligation.--There shall be allowed as a credit against the
taxes imposed by subtitle A for the taxable year an amount equal to the
excess (if any) of--
``(1) the aggregate of the amounts described in
subparagraphs (A) and (B) of subsection (e)(2), over
``(2) the actual child support obligation of the taxpayer
for such taxable year.
The credit allowed by this subsection shall be treated for purposes of
this title as allowed by subpart C of part IV of subchapter A of
chapter 1.
``(h) Child Support Treated as Taxes.--
``(1) In general.--For purposes of penalties and interest
related to failure to deduct and withhold taxes, amounts
required to be deducted and withheld under this section shall
be treated as taxes imposed by chapter 24.
``(2) Other rules.--Rules similar to the rules of sections
3403, 3404, 3501, 3502, 3504, and 3505 shall apply with respect
to child support obligations required to be deducted and
withheld.
``(3) Special rule for collections.--For purposes of
collecting any unpaid amount which is required to be paid under
this section--
``(A) paragraphs (4), (6), and (8) of section
6334(a) (relating to property exempt from levy) shall
not apply, and
``(B) there shall be exempt from levy so much of
the salary, wages, or other income of an individual as
is being withheld therefrom in garnishment pursuant to
a judgment entered by a court of competent jurisdiction
for the support of his minor children.
``(i) Treatment of Arrearages Under Child Support Obligations Not
Subject to Section for Prior Period.--If--
``(1) this section did not apply to any child support
obligation by reason of subsection (b) for any prior period,
and
``(2) there is a legally enforceable past-due amount under
such obligation for such period,
then such past-due amount (and any penalties and interest with respect
to such amount as of the close of such period) shall be treated for
purposes of this section as owed for the first month that this section
applies to such obligation.
``(j) Definitions and Special Rules.--
``(1) Definitions.--For purposes of this section--
``(A) Withholding certificate.--The term
`withholding certificate' means the withholding
exemption certificate used for purposes of chapter 24.
``(B) Business day.--The term `business day' means
any day other than a Saturday, Sunday, or legal holiday
(as defined in section 7503).
``(2) Timely mailing.--Any notice under subsection (c)(2)
or (d)(2) which is delivered by United States mail shall be
treated as given on the date of the United States postmark
stamped on the cover in which such notice is mailed.
``(k) Regulations.--The Secretary shall prescribe such regulations
as may be necessary or appropriate to carry out the purposes of this
section.''
``SEC. 7528. DISBURSEMENT OF CHILD SUPPORT COLLECTIONS.
``As soon as practicable after the Secretary receives an amount
paid under section 7527 that is attributable to a child support
obligation owed with respect to a family, the Secretary shall, using
information in the Federal Case Registry of Child Support Orders
established under section 453(h) of the Social Security Act, ascertain
the identity of the family and distribute the amount as follows:
``(1) Families receiving assistance.--In the case of a
family receiving assistance from a State, the Secretary shall--
``(A) pay to the State the State share of the
amount so collected; and
``(B) retain, or distribute to the family, the
Federal share of the amount so collected.
In no event shall the total of the amounts paid to the State
with respect to a family and the amounts retained by the
Federal Government with respect to the family, under this
paragraph, exceed the total of the amounts that have been paid
to the family as assistance by the State, except that the total
amount distributed to families under this paragraph during a
fiscal year shall not exceed the total of the amounts paid
under section 7527 during the fiscal year minus any credits
allowed under section 7527(g) during the fiscal year.
``(2) Families that formerly received assistance.--In the
case of a family that formerly received assistance from a
State:
``(A) Current support payments.--To the extent that
the amount so collected does not exceed the amount
required to be paid to the family for the month in
which collected, the Secretary shall distribute the
amount so collected to the family.
``(B) Payments of arrearages.--To the extent that
the amount so collected exceeds the amount required to
be paid to the family for the month in which collected,
the Secretary shall distribute the amount so collected
as follows:
``(i) Distribution of arrearages that
accrued after the family ceased to receive
assistance.--
``(I) Pre-effective date.--Except
as provided in subclause (II), the
provisions of this section (other than
subsection (b)(1)) as in effect and
applied on the day before the date of
the enactment of section 302 of the
Personal Responsibility and Work
Opportunity Act Reconciliation of 1996
shall apply with respect to the
distribution of support arrearages
that--
``(aa) accrued after the
family ceased to receive
assistance from the State, and
``(bb) are collected before
the 1st day of the 1st fiscal
year that begins after the
effective date of this section.
``(II) Post-effective date.--With
respect to the amount so collected on
or after the 1st day of the 1st fiscal
year that begins after the effective
date of this section:
``(aa) In general.--The
Secretary shall first
distribute the amount so
collected (other than any
amount described in clause
(iv)) to the family to the
extent necessary to satisfy any
support arrearages with respect
to the family that accrued
after the family ceased to
receive assistance from the
State.
``(bb) Reimbursement of
governments for assistance
provided to the family.--After
the application of division
(aa) and clause (ii)(II)(aa)
with respect to the amount so
collected, the Secretary shall
retain the Federal share of
the amount so collected, and pay to the State the State share of the
amount so collected, but only to the extent necessary to reimburse
amounts paid to the family as assistance by the State.
``(cc) Distribution of the
remainder to the family.--To
the extent that neither
division (aa) nor division (bb)
applies to the amount so
collected, the Secretary shall
distribute the amount to the
family.
``(ii) Distribution of arrearages that
accrued before the family received
assistance.--
``(I) Pre-effective date.--Except
as provided in subclause (II), the
provisions of this section (other than
subsection (b)(1)) as in effect and
applied on the day before the date of
the enactment of section 302 of the
Personal Responsibility and Work
Opportunity Reconciliation Act of 1996
shall apply with respect to the
distribution of support arrearages
that--
``(aa) accrued before the
family received assistance from
the State; and
``(bb) are collected before
the 1st day of the 1st fiscal
year that begins after the
effective date of this section.
``(II) Post-effective date.--With
respect to the amount so collected on
or after the 1st day of the 1st fiscal
year that begins after the effective
date of this section:
``(aa) In general.--The
Secretary shall first
distribute the amount so
collected (other than any
amount described in clause
(iv)) to the family to the
extent necessary to satisfy any
support arrearages with respect
to the family that accrued
before the family received
assistance from the State.
``(bb) Reimbursement of
governments for assistance
provided to the family.--After
the application of clause
(i)(II)(aa) and division (aa)
of this subclause with respect
to the amount so collected, the
Secretary shall retain the
Federal share of the amount so
collected, and pay to the State
the State share of the amount
so collected, but only to the
extent necessary to reimburse
amounts paid to the family as
assistance by the State.
``(cc) Distribution of the
remainder to the family.--To
the extent that neither
division (aa) nor division (bb)
applies to the amount so
collected, the Secretary shall
distribute the amount to the
family.
``(iii) Distribution of arrearages that
accrued while the family received assistance.--
In the case of a family described in this
subparagraph, paragraph (1) shall apply with
respect to the distribution of support
arrearages that accrued while the family
received assistance from the State.
``(iv) Ordering rules for distributions.--
For purposes of this subparagraph, unless an
earlier effective date is required by this
section, effective October 1, 2000, the
Secretary shall treat any support arrearages
collected as accruing in the following order:
``(I) To the period after the
family ceased to receive assistance
from the State.
``(II) To the period before the
family received assistance from the
State.
``(III) To the period while the
family was receiving assistance from
the State.
``(3) Families that never received assistance.--In the case
of any other family, the Secretary shall distribute the amount
so collected to the family.
``(b) Definitions.--As used in this section:
``(1) Assistance.--The term `assistance' means, with
respect to a State--
``(A) assistance under a State program funded under
part A of title IV of the Social Security Act; or
``(B) foster care maintenance payments under a
State plan approved under part E of title IV of the
Social Security Act.
``(2) Federal share.--The term `Federal share' means that
portion of the amount collected resulting from the application
of the Federal medical assistance percentage in effect for the
fiscal year in which the amount is collected.
``(3) Federal medical assistance percentage.--The term
`Federal medical assistance percentage' means--
``(A) the Federal medical assistance percentage (as
defined in section 1118 of the Social Security Act), in
the case of Puerto Rico, the Virgin Islands, Guam, and
American Samoa; or
``(B) the Federal medical assistance percentage (as
defined in section 1905(b) of such Act, as in effect on
September 30, 1996) in the case of any other State.
``(4) State share.--The term `State share' means 100
percent minus the Federal share.''.
(b) Withheld Child Support To Be Shown on W-2.--Subsection (a) of
section 6051 of such Code is amended by striking ``and'' at the end of
paragraph (10), by striking the period at the end of paragraph (11) and
inserting ``, and'', and by inserting after paragraph (11) the
following new paragraph:
``(12) the total amount deducted and withheld as a child
support obligation under section 7527(c).''
(c) Application of Estimated Tax.--
(1) In general.--Subsection (f) of section 6654 of such
Code (relating to failure by individual to pay estimated income
tax) is amended by striking ``minus'' at the end of paragraph
(2) and inserting ``plus'', by redesignating paragraph (3) as
paragraph (4), and by inserting after paragraph (2) the
following new paragraph:
``(3) the aggregate amount of the child support obligations
of the taxpayer for months ending with or within the taxable
year (other than such an obligation for any month for which
section 7527 does not apply to such obligation), minus''.
(2) Paragraph (1) of section 6654(d) of such Code is
amended by adding at the end the following new subparagraph:
``(D) Determination of required annual payment for
taxpayers required to pay child support.--In the case
of a taxpayer who is required under section 7527 to pay
a child support obligation (as defined in section 7527)
for any month ending with or within the taxable year,
the required annual payment shall be the sum of--
``(i) the amount determined under
subparagraph (B) without regard to subsection
(f)(3), plus
``(ii) the aggregate amount described in
subsection (f)(3).''
(3) Credit for withheld amounts, etc.--Subsection (g) of
section 6654 of such Code is amended by adding at the end the
following new paragraph:
``(3) Child support obligations.--For purposes of applying
this section, the amounts collected under section 7527 shall be
deemed to be a payment of the amount described in subsection
(f)(3) on the date such amounts were actually withheld or paid,
as the case may be.''
(d) Penalty for False Information on Withholding Certificate.--
Section 7205 of such Code (relating to fraudulent withholding exemption
certificate or failure to supply information) is amended by adding at
the end the following new subsection:
``(c) Withholding of Child Support Obligations.--If any individual
willfully makes a false statement under section 7527(a), then such
individual shall, in addition to any other penalty provided by law,
upon conviction thereof, be fined not more than $1,000, or imprisoned
not more than 1 year, or both.''
(e) New Withholding Certificate Required.--Not later than 90 days
after the effective date of this Act, each employee who has a child
support obligation to which section 7527 of the Internal Revenue Code
of 1986 (as added by this section) applies shall furnish a new
withholding certificate to each of such employee's employers. A
certificate required under the preceding sentence shall be treated as
required under such section 7527.
(f) Repeal of Offset of Past-Due Support Against Overpayments.--
(1) Section 6402 of such Code is amended by striking
subsections (c) and (h) and by redesignating subsections (d),
(e), (f), (g), and (i) as subsections (c), (d), (e), (f), and
(g), respectively.
(2) Subsection (a) of section 6402 of such Code is amended
by striking ``subsections (c), (d), or (e)'' and inserting
``subsection (c) or (d)''.
(3) Subsection (c) of section 6402 of such Code (as
redesignated by paragraph (1)) is amended--
(A) by striking ``(other than past-due support
subject to the provisions of subsection (c))'' in
paragraph (1),
(B) by striking ``after such overpayment is reduced
pursuant to subsection (c) with respect to past-due
support collected pursuant to an assignment under
section 402(a)(26) of the Social Security Act and'' in
paragraph (2).
(4) Subsection (d) of section 6402 of such Code is amended
by striking ``subsections (c) or (d)'' and inserting
``subsection (c)''.
(5) Subsection (e) of section 6402 of such Code (as
redesignated by paragraph (1)) is amended by striking ``or
(d)''.
(g) Repeal of Collection of Past-Due Support.--Section 6305 of such
Code is hereby repealed.
(h) Clerical Amendments.--
(1) The table of sections for subchapter A of chapter 64 of
such Code is amended by striking the item relating to section
6305.
(2) The table of sections for chapter 77 of such Code is
amended by adding at the end thereof the following new item:
``Sec. 7527. Collection of child support.
``Sec. 7528. Disbursement of child
support collections.''
(i) Use of Parent Locator Service.--Section 453(a) of the Social
Security Act (42 U.S.C. 653(a)) is amended by inserting ``or the
Internal Revenue Service'' before ``information as''.
SEC. 5. ELIMINATION OF PROVISIONS OF LAW RELATING TO STATE ENFORCEMENT
OF CHILD SUPPORT OBLIGATIONS OTHER THAN MEDICAL SUPPORT
OBLIGATIONS.
(a) Amendment of the Social Security Act.--Except as otherwise
expressly provided, wherever in this section an amendment or repeal is
expressed in terms of an amendment to, or repeal of, a section or other
provision, the reference shall be considered to be made to a section or
other provision of the Social Security Act.
(b) Amendments to Section 451.--Section 451 (42 U.S.C. 651) is
amended--
(1) by inserting ``medical'' before ``support
obligations'';
(2) by striking ``obtaining child and spousal support'' and
inserting ``establishing child and spousal support
obligations''; and
(3) by striking ``obtaining support'' and inserting
``establishing such obligations and obtaining medical
support''.
(c) Amendments to Section 452.--Section 452 (42 U.S.C. 652) is
amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``obtaining child
support and support for the spouse (or former spouse)
with whom the noncustodial parent's child is living''
and inserting ``establishing child and spousal support
obligations of noncustodial parents and obtaining
medical support from noncustodial parents'';
(B) in paragraph (4)--
(i) in subparagraph (A)--
(I) by striking ``454(15)(B)'' and
inserting ``454(11)(B)''; and
(II) by striking ``and section
458'';
(ii) in subparagraph (B), by striking
``454(15)(A)'' and inserting ``454(11)(A)'';
and
(iii) in subparagraph (C)--
(I) in clause (i), by striking
``subsection (g) of this section and
section 458'' and inserting
``subsection (e) of this section''; and
(II) in clause (ii), by striking
``--'' and all that follows and
inserting ``whether Federal and other
funds made available to carry out the
State program are being appropriately
expended, and are properly and fully
accounted for;''
(C) in paragraph (7), by striking ``collecting
child and spousal support'' and inserting
``establishing child and spousal support obligations
and collecting child and spousal medical support'';
(D) in paragraph (8)--
(i) by inserting ``the medical support
requirements of'' before ``court'' the 1st
place such term appears; and
(ii) by inserting ``medical support
requirements of'' before ``court'' the 2nd
place such term appears; and
(iii) by striking ``such order'' and
inserting ``such requirements'';
(E) in paragraph (10)--
(i) by striking ``, but not be limited to''
and all that follows through the end of
subparagraph (A) and inserting ``include--
``(A) total program costs set forth in sufficient
detail to show the cost to the States and the Federal
Government, and an identification of the financial
impact of this part;'';
(ii) in subparagraph (C)--
(I) in the matter preceding clause
(i), by striking ``collect support''
and insert ``receive support'';
(II) in clause (iii), by striking
``support was collected'' and inserting
``medical support was provided''; and
(III) by striking clauses (iv)
through (vii) and inserting the
following:
``(iv) the total amount of medical support
provided as a result of State action;''; and
``(v) the number of child support cases
filed in each State in the fiscal year;''; and
(iii) in subparagraph (G)--
(I) by striking ``and on use of the
Internal Revenue Service for
collections'' and inserting ``to obtain
medical support''; and
(II) by striking ``on which
collections were made'' and inserting
``with respect to which medical support
was provided''; and
(F) by striking paragraph (6) and redesignating
paragraphs (7) through (11) as paragraphs (6) through
(10), respectively;
(2) in subsections (d) and (e), by striking ``454(16)''
each place such term appears and inserting ``454(12)'';
(3) in subsection (h)--
(A) by striking ``and enforcing support orders''
and inserting ``support orders and enforcing the
medical support requirements of such orders''; and
(B) by striking ``and collect child support
awards'' and inserting ``child support orders and
obtain medical support under such orders'';
(4) effective October 1, 1997, in subsection (k), by
striking ``454(31)'' and inserting ``454(24)''; and
(5) by striking subsections (b), (c), and (i) and
redesignating subsections (d) through (h), (j), and (effective
October 1, 1997) (k) as subsections (b) through (h),
respectively.
(d) Amendment to Section 453.--Section 453(b) (42 U.S.C. 653(b)) is
amended by striking ``454(26)'' and inserting ``454(18)''.
(e) Amendments to Section 454.--Section 454 (42 U.S.C. 654) is
amended--
(1) by striking paragraph (4) and inserting the following:
``(4) provide that the State will provide services relating
to the establishment of paternity or the establishment or
modification of child support obligations, or the enforcement
of the medical support provisions of such obligations, as
appropriate, under the State plan with respect to--
``(A) each child for whom (i) assistance is
provided under the State program funded under part A of
this title, (ii) benefits or services for foster care
maintenance are provided under the State program funded
under part E of this title, (iii) medical assistance is
provided under the State plan approved under title XIX,
or (iv) cooperation is required pursuant to section
6(l) of the Food Stamp Act of 1977 (7 U.S.C. 2015(l)),
unless, in accordance with paragraph (21), good cause
or other exceptions exist; and
``(B) any other child, if an individual applies for
such services with respect to the child;'';
(2) in paragraph (6), by striking subparagraph (C) and
redesignating subparagraphs (D) and (E) as subparagraphs (C)
and (D), respectively;
(3) in paragraph (9)--
(A) in subparagraph (E), by striking ``452(a)(11)
for income withholding, imposition of liens, and'' and
inserting ``452(a)(10) for''; and
(B) by striking subparagraph (C) and redesignating
subparagraphs (D) and (E) as subparagraphs (C) and (D),
respectively;
(4) in paragraph (13), by striking ``collecting support
payments'' and inserting ``obtaining medical support pursuant
to such orders'';
(5) in paragraph (15)(B)--
(A) by striking ``(16)'' and inserting ``(12)'';
and
(B) by striking ``sections 452(g) and 458'' and
inserting ``section 452(e)'';
(6) in paragraph (16)--
(A) by striking ``452(d)'' and inserting
``452(b)''; and
(B) by inserting ``medical'' before ``support
enforcement'';
(7) in paragraph (19), by inserting ``medical'' before
``support'' each place such term appears;
(8) in paragraph (21)(A), by striking ``466(e)'' and
inserting ``466(c)'';
(9) in paragraph (23), by striking ``enforcement'';
(10) in paragraph (25), by striking ``(6)(B)'' and
inserting ``(5)(B)'';
(11) in paragraph (29), by striking ``, modifying, or
enforcing'' and inserting ``or modifying'';
(12) in paragraph (31)--
(A) by striking ``452(k)'' and inserting
``452(h)''; and
(B) by adding ``and'' at the end;
(13) by striking ``and'' at the end of paragraph (32) and
inserting a period; and
(14) by striking paragraphs (5), (10), (11), (18), (21),
(22), (27), and (33), and the last sentence, and redesignating
paragraphs (6), (7), (8), (9), (13), (14), (15), (16), (17),
(19), (20), (23), (24), (25), (26), (27), (28), (29), (30),
(31), and (32) as paragraphs (5) through (25), respectively.
(f) Amendments to Section 454A.--Section 454A (42 U.S.C. 654a) is
amended--
(1) in subsection (c)--
(A) in the matter preceding paragraph (1), by
striking ``incentive payments and penalty adjustments
under sections 452(g) and 458'' and inserting ``penalty
adjustments under section 452(e)''; and
(B) in paragraph (1)(A), by striking ``and child
support enforcement'';
(2) by striking subsections (e) and (g);
(3) in subsection (f), by striking paragraph (1) and
redesignating paragraphs (2), (3), and (4) as paragraphs (1),
(2), and (3), respectively;
(4) in subsection (h), by striking ``466(c)'' and inserting
``466(b)''; and
(5) by redesignating subsections (f) and (h) as subsections
(e) and (f), respectively.
(g) Repeal of Section 454B.--Section 454B (42 U.S.C. 654b) is
repealed.
(h) Amendments to Section 455.--Section 455 (42 U.S.C. 655) is
amended--
(1) in subsection (a)(3), by striking ``454(16)'' each
place such term appears and inserting ``454(12)'';
(2) in subsection (d), by striking ``the amount of child
support collected and disbursed and''; and
(3) by striking subsection (e) and (b) (as added by section
375(b) of the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996).
(i) Amendments to Section 456.--Section 456(a) (42 U.S.C. 656(a))
is amended--
(1) in paragraph (1), by striking the 2nd sentence;
(2) in paragraph (2), by striking ``, and'' at the end and
inserting a period; and
(3) in paragraph (3), by striking ``amounts'' and inserting
``medical support''.
(j) Repeal of Sections 457 and 458.--Sections 457 and 458 (42
U.S.C. 657 and 658) are repealed.
(k) Repeal of Section Providing New Incentive Payments to States.--
(1) If this section becomes law before October 1, 1999,
then section 201 of the Child Support Performance and Incentive
Act of 1998 is repealed.
(2) If this section becomes law on or after October 1,
1999, then section 458A of the Social Security Act is repealed.
(l) Amendments to New Section 459.--Section 459 (42 U.S.C. 659) is
amended--
(1) in subsection (a), by striking ``enacted pursuant to
subsections (a)(1) and (b) of section 466 and regulations of
the Secretary under such subsections,'';
(2) in subsection (b), by striking ``subsections (a)(1) and
(b) of section 466'' and inserting ``State law'';
(3) in subsection (c)(2)--
(A) in the matter preceding subparagraph (A), by
striking ``subsections (a)(1) and (b) of section 466''
and inserting ``State law''; and
(B) in subparagraph (B), by striking ``section
466'' and inserting ``State law''; and
(4) in subsection (d), by striking ``--'' and all that
follows through ``and (2)'' and inserting ``, such moneys''.
(m) Amendment to Section 460.--Section 460 (42 U.S.C. 660) is
amended by striking ``452(a)(8)'' and inserting ``452(a)(7)''.
(n) Repeal of Section 464.--Section 464 (42 U.S.C. 664) is
repealed.
(o) Amendments to Section 466.--Section 466 (42 U.S.C. 666) is
amended--
(1) in subsection (a)--
(A) in the matter preceding paragraph (1), by
striking ``454(20)(A)'' and inserting ``454(15)(A)'';
(B) in paragraph (2)--
(i) in the 1st sentence--
(I) by striking ``(c)'' and
inserting ``(b)''; and
(II) by striking ``establishing,
modifying, and enforcing'' and
inserting ``establishing and modifying
support obligations and enforcing
medical''; and
(ii) in the 2nd sentence--
(I) by inserting ``of medical
support obligations'' after
``enforcement''; and
(II) by striking ``(d)'' and
inserting ``(c)'';
(C) in paragraph (5)--
(i) in subparagraph (B)(i), by striking
``454(29)'' and inserting ``454(22)''; and
(ii) in subparagraph (C)(iv), by striking
``452(a)(7)'' and inserting ``452(a)(6)'';
(D) in paragraph (9), by striking ``(2)'' and
inserting ``(1)'';
(E) in paragraph (19), by striking ``enforced'' and
inserting ``with respect to which services are
requested'';
(F) in the matter following paragraph (19)--
(i) by striking ``454(20)(B)'' and
inserting ``454(15)(B)''; and
(ii) by striking ``paragraphs (3), (4),
(6), (7), and (15)'' and inserting ``paragraph
(15)''; and
(G) by striking paragraphs (1), (3), (4), (6), (7),
(8), (14), and (17) and redesignating paragraphs (2),
(5), (9), (10), (11), (12), (13), (15) through (19),
(20) (as added by section 3(a) of this Act), and (21)
(as added by section 3(b)(1) of this Act) as paragraphs
(1) through (14), respectively;
(2) in subsection (c)--
(A) in paragraph (1)--
(i) in the matter preceding subparagraph
(A), by striking ``establishment, modification,
or enforcement'' and inserting ``establishment
or modification of support orders, or
enforcement of the medical support provisions
of such orders'';
(ii) in subparagraph (A), by striking
``466(a)(5)'' and inserting ``466(a)(2)'';
(iii) in subparagraph (D)(ii), by striking
``--'' and all that follows through ``(II)'';
and
(iv) by striking subparagraphs (B), (E),
(F), and (G) and redesignating subparagraphs
(C), (D), and (H) as subparagraphs (B), (C),
and (D), respectively; and
(B) in paragraph (2)--
(i) by striking ``(a)(2)'' and inserting
``(a)(1)''; and
(ii) by striking ``establish, modify, or
enforce support orders'' and inserting
``establish or modify support orders or enforce
the medical support provisions of such
orders'';
(3) in subsection (d)--
(A) by inserting ``medical'' before ``support'';
and
(B) by striking ``enforcement'';
(4) in subsection (e), by inserting ``medical'' after ``to
include'';
(5) in subsection (f), by inserting ``but shall not have in
effect any provision of Article 5 or 6 of such Act, including
any such amendments'' before the period;
(6) in subsection (g), by striking ``454(20)(A)'' and
inserting ``454(15)(A)''; and
(7) by striking subsection (b) and redesignating
subsections (c) through (g) as subsections (b) through (f),
respectively.
(p) Amendment to Section 468.--Section 468 (42 U.S.C. 668) is
amended by striking ``enforcement''.
(q) Amendments to Section 469.--Section 469 (42 U.S.C. 669) is
amended--
(1) in the section heading, by striking ``enforcement'';
(2) in subsection (a)(1), by striking ``enforcement''; and
(3) in subsection (b)(4), by inserting ``the medical
support provisions of'' before ``an established''.
(r) Amendments to Section 469A.--Section 469A (42 U.S.C. 669a) is
amended--
(1) in subsection (a), by striking ``enforcement''; and
(2) in subsection (b)--
(A) in the heading, by striking ``Enforcement'';
and
(B) by striking ``establishing, modifying, or
enforcing a child support obligation'' and inserting
``establishing or modifying a child support obligation
or enforcing the medical support provisions of such an
obligation''.
(s) Amendments to the Balanced Budget and Emergency Deficit Control
Act of 1985.--Section 256(f) of the Balanced Budget and Emergency
Deficit Control Act of 1985 (2 U.S.C. 906(f)) is amended--
(1) in the heading, by striking ``Enforcement''; and
(2) by striking ``sections 455 and 458'' and inserting
``section 455''.
(t) Amendment to Title 5, United States Code.--Section
552a(a)(8)(B)(iv)(III) of title 5, United States Code, as amended by
section 110(w) of the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996, is amended by striking ``, 464,''.
(u) Amendment to Title 10, United States Code.--Section 1408(d)(1)
of title 10, United States Code, is amended in the 1st sentence by
striking ``State disbursement unit established pursuant to section 454B
of the Social Security Act or other''.
SEC. 6. CRIMINAL PENALTIES FOR WILLFUL FAILURE TO PAY CHILD SUPPORT
REQUIRED TO BE PAID TO THE INTERNAL REVENUE SERVICE.
Section 228 of title 18, United States Code, is amended--
(1) by striking subsection (a) and inserting the following:
``(a) Offense.--Any person who willfully fails to pay Federal
income tax owed by reason of section 7527 of the Internal Revenue Code
of 1986, if the underlying support obligation has remained unpaid for a
period longer than 2 years, or is greater than $10,000, shall be
punished as provided in subsection (c).''; and
(2) in subsection (c)--
(A) in paragraph (1), by striking ``(a)(1)'' and
inserting ``(a)''; and
(B) by striking paragraph (2) and inserting the
following:
``(2) in the case of a second or subsequent offense under
subsection (a), a fine under this title, imprisonment for not
more than 2 years, or both.''.
SEC. 7. IMPLEMENTATION PLAN.
Not later than 6 months after the date of the enactment of this
Act, the Secretary of the Treasury shall submit to the Congress a plan
for implementing the amendments made by this Act.
SEC. 8. PROSECUTION AND JUDICIAL IMPACT STUDY.
Not later than 1 year after the date of the enactment of this Act,
the Attorney General shall submit to the Committee on the Judiciary of
the House of Representatives and the Committee on the Judiciary of the
Senate a study which details the impact the amendments made by this Act
have had on the Department of Justice and the Federal courts, including
on workload, personnel staffing, and budget resources.
SEC. 9. EFFECTIVE DATE.
The amendments and repeals made by this Act shall take effect on
the 1st day of the 1st calendar month that begins after the 2-year
period that begins with the date of the enactment of this Act.
<all>
Introduced in Senate
Sponsor introductory remarks on measure. (CR S1680-1681)
Read twice and referred to the Committee on Finance.
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