[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 967 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                 S. 967

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, to require the Internal Revenue Service to collect child 
       support through wage withholding, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                May 13 (legislative day, April 19), 1993

   Mr. Shelby (for himself, Mr. D'Amato, Ms. Moseley-Braun, and Mr. 
    Conrad) 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, to require the Internal Revenue Service to collect child 
       support through wage withholding, 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 ``Uniform Child Support Enforcement 
Act of 1993''.

SEC. 2. CERTAIN STATUTORILY PRESCRIBED PROCEDURES REQUIRED AS A 
              CONDITION OF RECEIVING FEDERAL CHILD SUPPORT FUNDS.

    Section 466(a) of the Social Security Act (42 U.S.C. 666(a)) is 
amended by inserting after paragraph (10) the following:
            ``(11)(A) Procedures which require any State court or 
        administrative agency that issues or modifies (or has issued or 
        modified) a child support order (including an order for the 
        payment of past-due support) to transmit a copy of the order to 
        the Internal Revenue Service on the later of--
                    ``(i) the date the order is issued or modified; or
                    ``(ii) the effective date of this paragraph.
            ``(B) Procedures which--
                    ``(i) 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 (including any past-due 
                support), unless the individual affirmatively elects to 
                retain such right at any time; and
                    ``(ii) allow any individual who has made the 
                election referred to in clause (i) to rescind or revive 
                such election at any time.''.

SEC. 3. COLLECTION 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 section:

``SEC. 7524. COLLECTION OF CHILD SUPPORT.

    ``(a) In General.--The Secretary shall establish a program to 
collect child support (including past-due support) pursuant to child 
support orders which are assigned to the Internal Revenue Service under 
section 466(a)(4) of the Social Security Act (42 U.S.C. 666(a)(4)).
    ``(b) Use of Wage Withholding, Etc.--Such program shall provide for 
the collection of child support required to be paid for any period 
through increases in wage withholding under chapter 24 and estimated 
tax payments under section 6654 during such period. Amounts required to 
be paid through such withholding and payments shall be treated as tax 
for purposes for this subtitle.
    ``(c) Annual Reckoning of Obligation.--
            ``(1) In general.--The entire amount of child support 
        required to be paid by any individual to the Internal Revenue 
        Service during any taxable year shall be paid--
                    ``(A) not later than the last date (determined 
                without regard to extensions) prescribed for filing 
                such individual's 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 subparagraph 
                (A), in such manner as the Secretary may by regulations 
                prescribe.
            ``(2) Credit for periodic payments.--The amount required to 
        be paid under paragraph (1) shall be reduced by the aggregate 
        payments of child support made under subsection (b) by such 
        individual through increases in wage withholding and estimated 
        tax payments.
    ``(d) Failure To Pay Amount Owing.--If an individual fails to pay 
the full amount required to be paid on or before the last date 
described in subsection (c)(1), 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, except that--
            ``(1) for such purposes, paragraphs (4), (6), and (8) of 
        section 6334(a) (relating to property exempt from levy) shall 
        not apply, and
            ``(2) 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.
    ``(e) Collections Dispersed to Individual Specified in Order.--
            ``(1) In general.--Except as provided in paragraph (2), 
        amounts collected under this section pursuant to any child 
        support order shall be paid to the individual entitled to such 
        amounts under such order as quickly as possible. Any penalties 
        and interest collected with respect to such amounts also shall 
        be paid to such individual.
            ``(2) Families receiving state assistance.--In the case of 
        an individual with respect to whom an assignment of child 
        support payments to a State is in effect--
                    ``(A) of the amounts collected which represent 
                monthly support payments, the first $50 of any payments 
                for a month shall be paid to such individual, and
                    ``(B) all other amounts shall be paid to such State 
                pursuant to such assignment.
        The payment of amounts under subparagraph (A) for any month 
        shall not affect a family's eligibility for assistance or the 
        amount of assistance payable to a family for such month under 
        any State plan approved under the Social Security Act.
    ``(f) Coordination With Underpayment Provisions.--If the Secretary 
is collecting--
            ``(1) unpaid child support pursuant to an assessment under 
        this section, and
            ``(2) unpaid tax pursuant to an assessment under section 
        6203,
all amounts collected shall be treated as collected pursuant to the 
assessment under this section to the extent of the amount of such 
unpaid child support.
    ``(g) Limitation on Judicial Review.--No court of the United States 
shall have jurisdiction to hear any action, whether legal or equitable, 
brought to restrain or review any assessment or collection authorized 
by this section, nor shall any such assessment or collection be subject 
to review by the Secretary in an administrative proceeding. This 
subsection shall not preclude any legal, equitable, or administrative 
action against the State by an individual in any State court or before 
any State agency to determine his liability for any amount assessed 
against him and collected, or to recover any such amount collected from 
him, under this section.
    ``(h) Regulations.--The Secretary shall prescribe such regulations 
as may be appropriate to carry out the purposes of this section.''.
    (b) Repeal of Offset of Past-Due Support Against Overpayments.--
            (1) Section 6402 of such Code is amended by striking 
        subsections (c) and (g) and by redesignating subsections (d), 
        (e), (f), (h), 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) or (d)'' and inserting 
        ``subsection (c)''.
            (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 (as 
        redesignated by paragraph (1)) is amended by striking ``or 
        (d)''.
    (c) Repeal of Collection of Past-Due Support.--Section 6305 of such 
Code is hereby repealed.
    (d) Estimate of Increased Internal Revenue Funding.--Within 1 year 
of the date of the enactment of this Act, the Secretary of the Treasury 
shall submit to the Congress an estimate of the additional cost per 
fiscal year for administering the program described in section 7524 of 
the Internal Revenue Code of 1986 (as added by this section).
    (e) 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. 7524. Collection of child 
                                        support.''.

SEC. 4. ELIMINATION OF PROVISIONS OF THE SOCIAL SECURITY ACT RELATING 
              TO STATE ENFORCEMENT OF CHILD 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 303.--Section 303(e) (42 U.S.C. 503(e)) 
is hereby repealed.
    (c) Amendments to Section 402.--Section 402(a) (42 U.S.C. 602(a)) 
is amended--
            (1) in paragraph (8)(A)(vi), by striking ``(including 
        support payments collected and paid to the family under section 
        457(b))'';
            (2) in paragraph (11), by striking ``(established pursuant 
        to part D of this title)'';
            (3) in paragraph (26)(B), by striking ``support'' and all 
        that follows through ``child,'' and inserting ``any payments or 
        property due such applicant or a child with respect to whom 
        such aid is claimed,'';
            (4) in paragraph (28)--
                    (A) by striking ``pursuant to a plan approved under 
                part D, and retained by the State under section 457,''; 
                and
                    (B) by striking ``approved under this part'' each 
                place such term appears; and
            (5) in paragraph (44)(B), by striking ``and the enforcement 
        of child support obligations''.
    (d) Amendments to Section 403.--Section 403(b)(2) (42 U.S.C. 
603(b)(2)) is amended--
            (1) by inserting ``and'' before ``(B)''; and
            (2) by striking ``, and (C) and all that follows through 
        ``such section''.
    (e) Amendment to Section 406.--Section 406(h) (42 U.S.C. 606(h)) is 
amended by striking ``under part D''.
    (f) Amendments to Section 408.--Section 408 (42 U.S.C. 608) is 
amended--
            (1) in subsection (f)--
                    (A) in paragraph (2)(C), by striking the semicolon 
                and inserting a period; and
                    (B) by striking all that follows paragraph (2)(C); 
                and
            (2) in subsection (m), by striking paragraphs (4) and (5) 
        and redesignating paragraph (6) as paragraph (4).
    (g) Amendments to Section 451.--Section 451 (42 U.S.C. 651) is 
amended--
            (1) by striking ``enforcing'' and all that follows through 
        ``living,'';
            (2) by striking ``obtaining child and spousal support'' and 
        inserting ``establishing child and spousal support obligations 
        of noncustodial parents''; and
            (3) by striking ``obtaining support'' and inserting 
        ``establishing such obligations''.
    (h) 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 absent parent's child is living'' and 
                inserting ``establishing child and spousal support 
                obligations of noncustodial parents'';
                    (B) in paragraph (7), by striking ``collecting 
                child and spousal support'' and inserting 
                ``establishing child and spousal support obligations'';
                    (C) in paragraph (10)--
                            (i) in subparagraph (A)--
                                    (I) by striking ``and 
                                collections''; and
                                    (II) by striking ``, the 
                                distribution of collections to 
                                families, State and local governmental 
                                units, and the Federal Government'';
                            (ii) in subparagraph (C)--
                                    (I) by striking clauses (i) and 
                                (ii) and redesignating clauses (iii), 
                                (iv), and (v), as clauses (i), (ii), 
                                and (iii), respectively; and
                                    (II) in clause (iii) (as so 
                                redesignated), by striking ``, and'' 
                                and all that follows;
                            (iii) in subparagraph (G), by striking 
                        ``the use of'' and all that follows through 
                        ``made,''; and
                            (iv) by striking the sentence that follows 
                        subparagraph (I); and
                    (D) by striking paragraphs (6) and (8) and 
                redesignating paragraphs (7), (9), and (10) as 
                paragraphs (6), (7), and (8), respectively;
            (2) in subsection (d), by striking ``454(16)'' each place 
        such term appears and inserting ``454(12)'';
            (3) in subsection (f), by striking ``enforcement'';
            (4) in subsection (g)(2)(A), by striking ``454(6)'' each 
        place such term appears and inserting ``454(5)'';
            (5) in subsection (h)--
                    (A) by striking ``and enforcing''; and
                    (B) by striking ``and collect''; and
            (6) by striking subsections (b), (c), and (i) and 
        redesignating subsections (d), (e), (f), (g), and (h) as 
        subsections (b), (c), (d), (e), and (f), respectively.
    (i) Amendments to Section 454.--Section 454 (42 U.S.C. 654) is 
amended--
            (1) in paragraph (4)(B)--
                    (A) by striking ``secure'' and all that follows 
                through ``plan)'' and inserting ``establish the child 
                and spousal support obligations of the child's 
                parent''; and
                    (B) by striking ``or enforce'';
            (2) in paragraph (6)--
                    (A) in subparagraph (A)--
                            (i) by striking ``collection'' and 
                        inserting ``establishment''; and
                            (ii) by striking all that follows 
                        ``State,''; and
                    (B) by striking subparagraph (C) and redesignating 
                subparagraphs (D) and (E) as subparagraphs (C) and (D), 
                respectively;
            (3) in paragraph (9)--
                    (A) by inserting ``and'' at the end of subparagraph 
                (B); and
                    (B) by striking subparagraph (C) and redesignating 
                subparagraph (D) as subparagraph (C);
            (4) in paragraph (13), by striking ``obtaining support 
        orders, and collecting support payments'' and inserting 
        ``establishing support obligations'';
            (5) in paragraph (16)--
                    (A) in subparagraph (A), by striking ``enforcement 
                collection'' and all that follows through ``(iii)'' and 
                inserting ``establishment and paternity determination 
                process under such plan, including maintaining the data 
                necessary to meet the Federal reporting requirements on 
                a timely basis, and (ii)'';
                    (B) in subparagraph (C), by inserting ``and'' at 
                the end;
                    (C) in subparagraph (E) by striking ``collection 
                and enforcement'' and inserting ``establishment of 
                support obligations''; and
                    (D) by striking subparagraphs (B) and (D) and 
                redesignating subparagraphs (C) and (E) as 
                subparagraphs (B) and (C), respectively;
            (6) in paragraph (20)(A), by striking ``to improve child 
        support enforcement effectiveness which are'';
            (7) by striking paragraphs (5), (10), (11), (12), (18), 
        (19), (21), (22), and (23), and redesignating paragraphs (6), 
        (7), (8), (9), (13), (14), (15), (16), (17), (20), and (24) as 
        paragraphs (5) through (15), respectively; and
            (8) by striking the 2nd sentence.
    (j) Amendment to Section 455.--Section 455 (42 U.S.C. 655) is 
amended by striking subsection (e).
    (k) Amendments to Section 456.--
            (1) In general.--Section 456(a) (42 U.S.C. 656(a)) is 
        amended--
                    (A) in paragraph (2), by striking ``, and'' at the 
                end and inserting a period; and
                    (B) by striking paragraph (3).
            (2) Section transferred to part a of title iv.--Section 456 
        of the Social Security Act is hereby redesignated as section 
        411, transferred to part A of title IV of such Act, and 
        inserted after section 410 of such Act.
    (l) Repeal of Sections 457, 458, 460, and 464.--Sections 457, 458, 
460, and 464 (42 U.S.C. 657, 658, 660, and 664) are hereby repealed.
    (m) 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(14)(A)'';
                    (B) in paragraph (2)--
                            (i) in the 1st sentence, by striking 
                        ``obtaining and enforcing support orders'' and 
                        inserting ``establishing support obligations''; 
                        and
                            (ii) in the 2nd sentence, by striking ``and 
                        enforcement'';
                    (C) in paragraph (10)--
                            (i) in each of subparagraphs (A) and (B), 
                        by striking ``being enforced under this part'' 
                        each place such term appears and inserting ``in 
                        effect in the State'';
                            (ii) in subparagraph (A), by striking 
                        ``enforcement''; and
                            (iii) in subparagraph (C), by striking 
                        ``that is being enforced under this part''; and
                    (D) by striking paragraphs (1), (3), (4), (6), (7), 
                (8), and (9), and the matter following paragraph (10), 
                and redesignating paragraphs (2), (5), (10), and (11) 
                (as added by section 2 of this Act) as paragraphs (1), 
                (2), (3), and (4), respectively;
            (2) in subsection (d)--
                    (A) by striking ``administrative costs, and average 
                support collections'' and inserting ``and 
                administrative costs''; and
                    (B) by striking ``enforcement''; and
            (3) by striking subsections (b), (c), and (e) and 
        redesignating subsection (d) as subsection (b).
    (n) Amendment to Section 468.--Section 468 (42 U.S.C. 668) is 
amended by striking ``enforcement''.
    (o) 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 striking ``enforcing or''.
    (p) Amendments to Section 1902.--Section 1902(a)(25)(F) (42 U.S.C. 
1396a(a)(25)(F)) is amended by striking ``by the State agency under 
part D of title IV of this Act'' and inserting ``by or on behalf of any 
agency or instrumentality of the Federal Government''.
    (q) Amendment 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 by striking 
``sections 455 and 458'' and inserting ``section 455''.
    (r) Amendment to Title 5, United States Code.--Section 
552a(a)(S)(iv)(III) of title 5, United States Code, is amended by 
striking ``464 or''.
    (s) Amendments to Title 31, United States Code.--
            (1) Section 3720A(a) of title 31, United States Code, is 
        amended by striking ``any past-due support''.
            (2) Section 3720A(f) of title 31, United States Code, is 
        amended by striking paragraph (2) and by redesignating 
        paragraph (3) as paragraph (2).

SEC. 5. REDUCED ESTIMATES OF STATE EXPENDITURES.

    Effective with respect to each quarter beginning after the 
effective date of this Act, each State, as part of its report required 
under section 455(b) of the Social Security Act (42 U.S.C. 655(b)), 
shall estimate the total amounts to be expended during such quarter 
under part D of title IV of the Social Security Act at a level not 
greater than 40 percent of the amounts which would have been expended 
if the amendments made by section 4 of this Act had not been enacted.

SEC. 6. EFFECTIVE DATE.

    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>

S 967 IS----2