[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 1882 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                S. 1882

 To expand child support enforcement through means other than programs 
                      financed at Federal expense.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            November 8, 1999

 Mrs. Hutchison (for herself and Mr. Stevens) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To expand child support enforcement through means other than programs 
                      financed at Federal expense.

    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 Enforcement Options 
Act of 1999''.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds that--
            (1) nearly 28 percent of the Nation's children live in 
        families headed by a single parent and these families are 5 
        times more likely to be poor than 2-parent families;
            (2) children make up 40 percent of the Nation's poor 
        population and 1 out of every 5 children in the Nation live in 
        poverty;
            (3) the regular and full collection of child support from 
        an absent parent can make a significant difference in the 
        financial well-being of single-parent families, particularly 
        families which have left the public welfare rolls;
            (4) only 50 percent of the single-parent families which are 
        owed child support receive the full amount due them during any 
        year and 25 percent of such families received none of the 
        support due them;
            (5) because of their need for effective child support 
        enforcement millions of families have turned to the Government 
        child support program established in 1975 under part D of title 
        IV of the Social Security Act (referred to in this Act as the 
        ``title IV-D program'') causing the caseload of that program to 
        increase over the past 20 years from just under 4,000,000 cases 
        to well over 19,000,000;
            (6) in fiscal year 1979 the collection rate in title IV-D 
        program cases was 17.1 percent and in fiscal year 1996 the rate 
        was 20.5 percent, representing only a 3.4 percent increase over 
        a 17-year period despite greatly improved enforcement resources 
        and remedies;
            (7) in fiscal year 1996 the title IV-D program collected 
        nearly $12,000,000,000 in child support, representing, only 
        about 52 percent of all current support owed in title IV-D 
        program cases that year and only about 8 percent of past-due 
        support owed that year, leaving $44,600,000,000 still 
        uncollected in title IV-D program cases in fiscal year 1996;
            (8) in fiscal year 1996 the operation of the title IV-D 
        program cost the taxpayer $3,100,000,000, of which 
        $2,000,000,000 is Federal funding;
            (9) in fiscal year 1996 there were about 52,000 staff 
        employed in the title IV-D program who are dedicated to their 
        work but unable to keep up with the enforcement needs of the 
        millions of families served by the program;
            (10) millions of families needing child support services 
        turn to private attorneys and local government agencies which 
        not part of the title IV-D program, but these attorneys and 
        non-title IV-D public agencies do not have access to all the 
        enforcement tools Congress has provided to the title IV-D 
        program;
            (11) to the extent that enforcement tools now available to 
        only the title IV-D program are not also available to private 
        attorneys and non-title IV-D public agencies, such tools are 
        being underutilized and non-title IV-D entities are limited in 
        their ability to contribute to the national child support 
        enforcement effort; and
            (12) if private attorneys and non-title IV-D public 
        agencies have access to the enforcement remedies and 
        information now available to only title IV-D program agencies, 
        they could significantly augment the resources of the title IV-
        D program without using any Federal taxpayer dollars.
    (b) Purposes.--The purposes of this Act are to--
            (1) allow resources outside the title IV-D program to more 
        effectively fight the growing problem of nonsupport in this 
        country, without any financial cost to the Federal taxpayer, by 
        providing private attorneys and public non-title IV-D agencies 
        controlled access to certain enforcement tools now limited in 
        use to the title IV-D program; and
            (2) provide families seeking child support enforcement 
        services the benefit of a choice in the use of available 
        resources, thereby enabling more American families to receive 
        the child support which they are owed and need for their 
financial self-sufficiency without being forced to turn to the already 
overburdened, taxpayer-funded title IV-D program.

SEC. 3. EQUAL USE OF INCOME WITHHOLDING FOR UNEMPLOYMENT INSURANCE 
              BENEFITS.

    (a) Disclosure of Wage Information to Persons Other Than Title IV-D 
Agency.--Section 303(e)(1) of the Social Security Act (42 U.S.C. 
503(e)(1)) is amended--
            (1) in subparagraph (A), by inserting ``, or to any other 
        individual or person enforcing child support obligations,'' 
        after ``enforcement agency''; and
            (2) in the second sentence--
                    (A) by striking ``only''; and
                    (B) by inserting ``and which are being enforced by 
                an individual or person other than the State or local 
                child support enforcement agency'' before the period.
    (b) Authority To Withhold in the Case of Non-Title IV-D 
Enforcement.--Section 303(e)(2)(A) of the Social Security Act (42 
U.S.C. 503(e)(2)(A)) is amended--
            (1) in clause (i), by inserting ``and the identity and 
        location of the agency, individual, or person enforcing the 
        obligations, to the extent known'' before the comma;
            (2) in clause (ii), by inserting ``, or the individual or 
        person,'' after ``agency'';
            (3) in clause (iii)(III), by striking ``462(e)'' and 
        inserting ``459(i)(5)'';
            (4) in clause (iv), by inserting ``or individual or person 
        disclosed under clause (i)'' before the period; and
            (5) in the matter following clause (iv)--
                    (A) by inserting ``or to the individual or person 
                disclosed under clause (i) through legal process (as 
                defined in section 459(i)(5))'' after ``agency''; and
                    (B) by striking ``his'' and inserting ``the 
                individual's''.
    (c) Fees.--Section 303(e)(2) of the Social Security Act (42 U.S.C. 
503(e)(2)) is amended by adding at the end the following:
    ``(D) The State agency charged with the administration of the State 
law may require payment, not to exceed $5.00 per calendar month, for 
the administrative costs incurred by the agency under this paragraph 
for any child support obligations enforced pursuant to subparagraph (A) 
which are attributable to child support obligations that are enforced 
by an individual or person other than a State or local child support 
enforcement agency.''.

SEC. 4. COMPREHENSIVE COORDINATION WITH OTHER ENFORCEMENT EFFORTS.

    (a) Secretarial Responsibilities.--
            (1) In general.--Section 452 of the Social Security Act (42 
        U.S.C. 652) is amended by adding at the end the following:
    ``(m) Coordination With Other Enforcement Activities.--
            ``(1) In general.--The Secretary shall seek and promote, to 
        the extent consistent with this part, the enforcement of child 
        support obligations through activities conducted by a private 
        attorney or a public entity not providing services pursuant to 
        a State plan under this part in order to ensure the fullest 
        practicable utilization of available enforcement resources not 
        requiring Federal financial support.
            ``(2) Access to enforcement remedies and resources.--The 
        Secretary shall provide, to the maximum extent feasible and for 
        the sole purpose of establishing paternity and establishing, 
        modifying, and enforcing support obligations, access to the 
        following procedures, remedies, and information to a State or 
        local governmental enforcement agency not providing enforcement 
        services under a plan approved under this part and to any 
        private attorney that is registered with the Secretary under 
        this section, and without the requirement of an application for 
        services pursuant to section 454(4)(A)(ii) and subject to such 
        reasonable fees as the Secretary may prescribe:
                    ``(A) The collection of past-due child support from 
                Federal income tax refunds pursuant to section 464, 
                subject to such procedures governing the time, content, 
                and form of requests for such collection as are 
                established by the Secretary of the Treasury, and 
                approved by the Secretary.
                    ``(B) The collection of overdue child support from 
                State income tax refunds pursuant to section 466(a)(3).
                    ``(C) The denial, revocation, or limitation of 
                passports for overdue child support pursuant to section 
                452(k).
                    ``(D) The reporting to consumer credit bureaus of 
                noncustodial parents who are delinquent in the payment 
                of child support and the amount of overdue support 
                pursuant to section 466(a)(7).
                    ``(E) Financial institution data matches and the 
                enforcement of past-due support pursuant to section 
                466(a)(17).
                    ``(F) In addition to all information authorized to 
                be disclosed to an authorized person under sections 
                453(a)(2) and 454(8), pertinent case information, 
                including information comparisons under section 453(j), 
                maintained in components of the Federal Parent Locator 
                Service under section 453 and information reported by 
                employers pursuant to section 453A(b), subject to 
                section 6103 of the Internal Revenue Code of 1986 
                (relating to the confidentiality of Federal income tax 
                returns and return information) and other Federal 
                requirements applicable to the confidentiality of 
                information and the protection of privacy rights, 
                including section 454(26) of this title.
            ``(3) Registration with the secretary of a public 
        enforcement agency or a private attorney.--
                    ``(A) In general.--For purposes of this subsection, 
                the Secretary shall develop a form and procedures, 
                including the charging of a reasonable fee, for the 
                registration of a private attorney or public child 
                support enforcement agency not providing services under 
                this part. The form established under this subparagraph 
                shall require--
                            ``(i) the disclosure of the legal name and 
                        address of the public agency or of the law 
                        offices of the attorney or other entity for 
                        which the attorney provides legal services, 
                        that provides enforcement of child support 
                        obligations;
                            ``(ii) the length of time the public agency 
                        or the attorney or the entity for which the 
                        attorney provides legal services in the 
                        enforcement of child support, has provided such 
                        enforcement services;
                            ``(iii) the nature of the child support 
                        enforcement services provided by the public 
                        agency or by the attorney or entity for which 
                        the attorney provides legal services in the 
                        enforcement of child support;
                            ``(iv) the amount of fees and other costs 
                        charged a client for such services and a copy 
                        of the standard contract or other agreement 
                        between the public agency or the attorney or 
                        entity for which the attorney provides legal 
                        services in the enforcement of child support 
                        and an individual receiving child support 
                        enforcement services from the public agency or 
                        attorney; and
                            ``(v) evidence of any bond or other 
                        assurance of client funds security.
                    ``(B) Registration numbers.--Upon receiving a 
                completed and sworn registration form under this 
                paragraph, the Secretary shall assign a registration 
                number to the registering agency or attorney. The 
                Secretary shall provide registration information, 
                including the assigned registration number for a public 
                agency or private attorney, to each State agency 
                operating an enforcement program under an approved plan 
                under this part and, upon request and payment of a 
                reasonable fee, to any other entity or individual.
                    ``(C) Update of registration information.--If the 
                information provided on a registration form by a public 
                agency or private attorney changes, the registered 
                agency or attorney shall notify the Secretary of the 
                new or amended information not later than 90 days after 
                the date of such change, subject to the revocation of 
                the registration by the Secretary.
                    ``(D) Term of registration; renewal.--A 
                registration under this paragraph expires on the second 
                anniversary of the date of issuance of the registration 
                and must be renewed not later than 60 days after such 
                expiration date by filing a new registration form with 
                the Secretary.
            ``(4) Penalties.--
                    ``(A) In general.--In addition to any other 
                penalties provided under Federal or State law, with 
                respect to any public agency or private attorney 
                registered with the Secretary under this paragraph (3) 
                that knowingly and intentionally or with gross 
                negligence uses, for purposes other than establishing 
                paternity, or establishing, modifying, or enforcing 
                child support obligations, any enforcement remedies or 
                information made available under this subsection to 
                such agency or attorney, the Secretary may impose 
                either or both of the following penalties:
                            ``(i) An administrative fine not to exceed 
                        $10,000.
                            ``(ii) The revocation of the agency's or 
                        the attorney's registration under paragraph 
                        (3), with appropriate notice to State 
                        enforcement agencies providing services under 
                        this part and, in the case of an attorney, to 
                        disciplinary bodies of the State in which the 
                        attorney is licensed to practice law.
                    ``(B) Investigation.--The Secretary shall develop 
                procedures for the investigation of any allegation of 
                inappropriate use of enforcement remedies or 
                information provided a public entity or private 
                attorney registered under paragraph (3). If the 
                Secretary determines that an enforcement remedy or 
                information provided to a registered entity or attorney 
                has knowingly and intentionally or with gross 
                negligence been used for purposes other than those 
                authorized under this subsection, the Secretary may 
                impose 1 or both of the penalties described in 
                subparagraph (A). An entity or attorney against whom an 
                allegation has been brought shall be afforded the 
                opportunity to respond to such allegation and to 
                produce any pertinent evidence in defense.
            ``(5) Nonliability for state title iv-d programs.--
        Notwithstanding any other provisions of Federal or State law, 
        any State program providing services under this part that, in 
        accordance with procedures developed by the Secretary, provides 
        information or enables the use of an enforcement remedy to a 
        public agency or private attorney registered under paragraph 
        (3) shall not be liable under any Federal or State law to any 
        person.
            ``(6) Required reports.--
                    ``(A) Report to secretary.--Each public agency or 
                private attorney registered with the Secretary under 
                paragraph (3) shall report to the Secretary on an 
                annual basis data relating to the use of enforcement 
                remedies and information made available to the agency 
                or attorney under this subsection, including the number 
                and type of enforcement actions taken, the results of 
                such actions, and the amounts of any collections made 
                and distributed.
                    ``(B) Report to congress.--The Secretary shall 
                include the data provided by registered agencies and 
                attorneys under subparagraph (A) in the annual report 
                of the Secretary under subsection (a)(10).
            ``(7) Monitoring by the secretary.--The Secretary shall 
        develop a procedure to monitor on a regular basis the use of 
        any enforcement procedures, remedies, and information provided 
        to a registered entity or person under this subsection to 
        ensure that such procedures, remedies, and information are used 
        for the sole purpose of establishing paternity and 
        establishing, modifying, and enforcing support obligations.
            ``(8) Safeguards on use of information and enforcement 
        procedures.--An agency or private attorney registered under 
        paragraph (3) shall have in effect safeguards on access to, and 
        the appropriate use of, any information or procedures provided 
        to the agency or attorney under this subsection. Such 
        safeguards shall include written policies, controls on access 
        to information available through automated systems, and 
        training of all personnel who may have access to the 
        information or procedures authorized for use by the registered 
        agency or private attorney.''.
    (b) Development of Procedures.--The Secretary, in consultation with 
representatives of public agencies and the private bar eligible for 
registration under section 452(m)(3) of the Social Security Act, as 
added by this Act, shall develop procedures for the implementation, in 
a revenue neutral manner, of the provisions of this section for the 
access of such registered agencies and individuals to the enforcement 
remedies and resources identified in this section. Not later than 9 
months after the date of enactment of this section, the Secretary shall 
report on such procedures to the Committee on Ways and Means of the 
House of Representatives and to the Committee on Finance of the Senate.
    (c) State Option.--In developing the procedures required under 
subsection (b), the Secretary shall provide that, at the option of the 
State, a State program approved under part D of title IV of the Social 
Security Act may participate in a plan of cooperation under which the 
State program enables a registered public agency or private attorney to 
have access to, and utilize the enforcement information and remedies 
authorized under section 452(m), as added by this Act. Any State 
program participating in a plan of cooperation shall be entitled to 
such reasonable fees from a registered agency or attorney as the 
Secretary may determine to reimburse the State program for its 
participation in the plan.

SEC. 5. CONFORMING AND TECHNICAL AMENDMENTS.

    (a) Control by Secretary of Information in Federal Parent Locator 
Service.--
            (1) Section 453(c)(1) of the Social Security Act (42 U.S.C. 
        653(c)(1)) is amended by inserting ``and any agent or attorney 
of any public child support enforcement agency not providing services 
under a plan approved under this part or of a private attorney 
registered with the Secretary under section 452(m)(3)'' before the 
semicolon.
            (2) Section 453(j) of such Act (42 U.S.C. 653(j)) is 
        amended by adding at the end the following:
            ``(6) Restrictions on disclosure of information 
        comparisons.--Except as provided in this subsection and section 
        452(m)(2)(F), the Secretary shall not disclose any information 
        comparisons authorized by this subsection.''.
    (b) Restrictions on Disclosure of New Hire Information 
Comparisons.--Section 453A of the Social Security Act (42 U.S.C. 653) 
is amended--
            (1) in subsection (f)(2), by striking ``provide the 
        agency'' and inserting ``provide only the agency''; and
            (2) in subsection (h)(1)--
                    (A) by striking ``may disclose'' and inserting 
                ``may only disclose''; and
                    (B) by inserting ``or, upon payment of a reasonable 
                fee not to exceed actual administrative costs, to any 
                person or entity authorized to receive such information 
                under section 452(m)(3)'' before the period.
    (c) Collection of Past-Due Support From Tax Refunds to Delinquent 
Obligors.--
            (1) Off-set.--Section 464(a) of the Social Security Act (42 
        U.S.C. 664(a)) is amended--
                    (A) in paragraph (2)(A)--
                            (i) in the first sentence--
                                    (I) by inserting `` or from an 
                                entity registered with the Secretary 
                                under section 452(m)(3) regarding an 
                                obligation for which such State agency 
                                is not providing enforcement services'' 
                                after ``454(4)(A)(ii)''; and
                                    (II) by inserting ``or such 
                                registered entity (as applicable)'' 
                                after ``State agency''; and
                            (ii) in the second sentence--
                                    (I) by inserting ``or to the 
                                registered entity for distribution'' 
                                after ``State agency''; and
                                    (II) by striking ``State shall'' 
                                and inserting ``State or registered 
                                entity shall''; and
                    (B) in paragraph (3)--
                            (i) in subparagraph (A)--
                                    (I) by inserting ``agency or an 
                                entity registered under section 
                                452(m)(3)'' after ``State''; and
                                    (II) by striking ``the State's 
                                determination'' and inserting ``the 
                                determination of the State agency or 
                                the registered entity'';
                            (ii) in subparagraph (B), by inserting 
                        ``agency or registered entity'' after ``State'' 
                        each place it appears;
                            (iii) in subparagraph (C), by adding at the 
                        end the following flush sentence:
        ``A registered entity shall directly reimburse the Secretary of 
        the Treasury the amount of such payment upon receiving notice 
        from the Secretary of such payment.''; and
                            (iv) in subparagraph (D), by inserting 
                        ``agency or registered entity'' after ``State'' 
                        each place it appears.
            (2) Notices of past-due support.--Section 464(b) of the 
        Social Security Act (42 U.S.C. 664(b)) is amended--
                    (A) by inserting ``agency'' after ``State'' each 
                place it appears;
                    (B) by inserting ``agencies'' after ``States'' each 
                place it appears; and
                    (C) by adding at the end the following:
            ``(3) In the case of withholding requests from entities 
        registered under section 452(m)(3), the Secretary of the 
        Treasury, in consultation with the Secretary of Health and 
        Human Services, shall develop procedures for receiving such 
        requests, including the manner in which withholding requests 
        must be submitted, the necessary information that must be 
        included in or accompany such requests, and the minimum amount 
        of past-due support to which the offset procedures may be 
        applied.''.
            (3) State income tax off-set.--Section 466(a)(3) of the 
        Social Security Act (42 U.S.C. 666(a)(3)) is amended--
                    (A) in the matter preceding subparagraph (A)--
                            (i) by inserting ``or an entity registered 
                        under section 452(m)(3)'' after ``agency''; and
                            (ii) by inserting ``or being enforced by 
                        such entity'' after ``part''; and
                    (B) in subparagraph (C), by inserting ``or the 
                registered entity'' after ``agency'' each place it 
                appears.
    (d) Reporting Arrearages to Credit Bureaus.--Section 466(7) of the 
Social Security Act (42 U.S.C. 666(7)) is amended by adding at the end 
the following:
                    ``(C) Reporting by state agency or registered 
                entity.--The State agency administering the State 
                program under this part or a child support enforcement 
                entity registered with the Secretary under section 
                452(m)(3) may make a report under this paragraph, 
                subject to safeguards under subparagraph (B).''.
    (e) Use of Passport Sanctions for Failure To Provide Support.--
Section 452(k) of the Social Security Act (42 U.S.C. 652(k)) is 
amended--
            (1) in paragraph (1), by inserting ``or by an entity 
        registered under section 452(m)(3)'' after ``section 454(31)''; 
        and
            (2) in paragraph (3), by inserting ``or registered entity'' 
        after ``agency''.
    (f) Financial Institution Data Matches for Support Enforcement.--
Section 466(a)(17) of the Social Security Act is amended by adding at 
the end the following:
                    ``(E) Requests of registered entities.--The State 
                agency shall, upon payment of a fee to cover actual 
                administrative costs and in accordance with such 
                procedures as the Secretary may establish, accept a 
                request from an agency or private attorney registered 
                under section 452(m)(3) for a data match under this 
                section with respect to a noncustodial parent subject 
                to an order not being enforced under this part. A State 
                agency accepting a request from such registered agency 
                or attorney shall not be liable under any Federal or 
                State law to any person as a result of incomplete or 
                inaccurate information provided by the registered 
                entity making the request.''.
    (g) State Plan Requirements.--Section 454 of the Social Security 
Act (42 U.S.C. 654) is amended--
            (1) in paragraph (32), by striking ``and'' at the end;
            (2) in paragraph (33), by striking the period at the end 
        and inserting a semicolon; and
            (3) by inserting after paragraph (33) the following:
            ``(34) provide that the State agency cooperate with a 
        public agency or private attorney registered with the Secretary 
        under section 452(m) by providing to such agency or attorney 
        upon request and subject to the privacy protections of 
        paragraph (26) case information available to the State agency 
        pursuant to its administrative authority under section 
        466(c)(1)(D) or otherwise available to the State agency from 
        the records of the State case registry required under section 
        454A; and
            ``(35) provide that the State agency close a case in which 
        enforcement services are being provided by an agency or 
        attorney registered under section 453(m) upon notification by 
        such registered agency or attorney, except that the State 
        agency may not close a case in which support payments are 
        collected for an individual with respect to whom an assignment 
        under section 402(a)(26) of this title is effective.''.
    (h) Clarification of Applicability of Certain Statutorily 
Prescribed Procedures for Child Support Enforcement.--Section 466(a) of 
the Social Security Act (42 U.S.C. 666(a)) is amended--
            (1) in paragraph (4)(A), by inserting ``without regard to 
        whether the support order is being enforced pursuant to this 
        part'' before the semicolon; and
            (2) in paragraph (16), by inserting ``without regard to 
        whether services are being provided pursuant to this part'' 
        after ``appropriate cases''.

SEC. 3. EXPEDITIOUS PAYMENT OF SUPPORT COLLECTIONS.

    (a) State Plan Requirements.--Section 454(11)(B) of the Social 
Security Act (42 U.S.C. 654(11)(B)) is amended by inserting ``at the 
address (including a financial institution for electronic transfer or 
direct deposit of funds) and in care of the individual or entity last 
specified for receipt of such payment by any individual legally able to 
so specify'' before the semicolon.
    (b) State Law Requirements.--Section 466(a) of the Social Security 
Act (42 U.S.C. 666(a)) is amended by inserting after paragraph (19) the 
following:
            ``(20) Payment of support collections.--Procedures under 
        which any payment of child support due a family which is 
        received by an instrumentality of or a political subdivision of 
        the State, or by an entity acting under authority of such an 
        instrumentality or political subdivision, shall be paid on 
        behalf of the individual entitled to such support at the 
        address (including a financial institution for electronic 
        transfer or direct deposit of funds) and in care of the 
        individual or entity last specified for receipt of such payment 
        by any individual legally able to so specify, without regard to 
        whether the child support obligation is being enforced under a 
        State plan approved under this part and without the necessity 
        of obtaining an order from any judicial or administrative 
        tribunal.''.
    (c) Conforming Amendment.--Section 454B of the Social Security Act 
(42 U.S.C. 654B) is amended by adding at the end the following:
    ``(e) Redirection of Disbursements.--The State disbursement unit 
shall redirect and forward any portion of a support payment due a 
family to any address (including a financial institution for the 
electronic transfer or direct deposit of funds) and in care of any 
person or entity last specified for receipt of such payment by any 
individual legally able to so specify on behalf of the person entitled 
to such support.''.
                                 <all>