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                                                   Order Code RL32937




                  CRS Report for Congress
                                      Received through the CRS Web




       Child Support Enforcement: Side-by-Side
        Comparison of Current Law and Welfare
       Reauthorization Bills (S. 667 and H.R. 240)




                                                       June 7, 2005




                                         Carmen Solomon-Fears
                                    Specialist in Social Legislation
                                   Domestic Social Policy Division




Congressional Research Service ~ The Library of Congress
 Child Support Enforcement: Side-by-Side Comparison
   of Current Law and Welfare Reauthorization Bills
                (S. 667 and H.R. 240)

Summary
      In the 109th Congress, the Senate Finance Committee and the House Ways and
Means Subcommittee on Human Resources have approved legislation that would
reauthorize and revise the Temporary Assistance for Needy Families (TANF) Block
Grant. This legislation, S. 667 and H.R. 240, also includes many changes to the
Child Support Enforcement (CSE) program, a component of the government's social
safety net. In 1996, Congress passed significant changes to the CSE program as part
of its reform of welfare. S. 667 was reported by the Senate Finance Committee on
March 17, 2005 (S.Rept. 109-51). H.R. 240 was approved by the House Ways and
Means Subcommittee on Human Resources on March 15, 2005.

      Although not identical, both bills are similar in focus, direction, and content
with respect to the CSE provisions. Both bills include provisions that seek to
improve the CSE program and raise collections so as to increase the economic
independence of former welfare families and provide a stable source of income for
all single-parent families with a noncustodial parent. Both bills provide incentives
(in the form of federal cost sharing) to states to direct more of the child support
collected on behalf of families to the families themselves, thereby reducing the
amount that state and federal governments retain (often referred to as a family-first
policy). Under both bills, families currently receiving TANF benefits as well as
former TANF recipients would potentially receive a larger share of child support that
was collected on their behalf.

     The approach used by the bills differ significantly, however, with regard to how
states would help TANF families receive more child support. S. 667 provides federal
cost-sharing for the entire amount that the state disregards and passes through to
families, whereas, under H.R. 240, federal cost sharing incentives would be offered
to encourage states to establish a child support pass-through provision or increase
the amount of existing child support pass-through payments. Also, H.R. 240
provides a more limited amount of federal cost sharing for state pass-through and
disregard policies than S. 667.

      Both bills revise some CSE enforcement tools and add others; increase funding
for the Federal Parent Locator Service (FPLS); increase funding for federal technical
assistance to the states; require states to review child support orders of TANF
families every three years; require that a report be submitted to Congress on
undistributed child support collections; and designate Indian tribes and tribal
organizations as persons authorized to have access to information in the FPLS. S.
667 increases funding for the CSE access and visitation program; requires states to
adopt a later version of the Uniform Interstate Family Support Act (UIFSA) so as to
facilitate the collection of child support payments in interstate cases; and requires that
medical child support be provided by either or both parents. H.R. 240 includes a
provision that would establish a $25 annual user fee for individuals who have never
been on TANF but received at least $500 via CSE services in any given year. This
report will be updated as needed.
Contents

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Overview of the Child Support Enforcement Program . . . . . . . . . . . . . . . . . . . . . 1
    Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
    Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
    Enforcement Techniques . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
    Financing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

S. 667 and H.R. 240: Major Provisions Related to Child Support
        Enforcement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
     Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
     Assignment of Child Support Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
     Distribution of Child Support . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
          TANF Families . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
          Former TANF Families . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
     Expansion of Collection/Enforcement Tools . . . . . . . . . . . . . . . . . . . . . . . . . 7
     Other Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Detailed Comparison of CSE Provisions in S. 667 and H.R. 240 . . . . . . . . . . . . . 8

Assignment of child support rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Federal matching funds for limited pass through of child support
    payments to families receiving TANF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

State option to pass through all child support payments to families that
     formerly received TANF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Mandatory review and adjustment of child support orders for families
   receiving TANF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Mandatory fee for successful child support collection for family that has
   never received TANF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Report on undistributed child support payments . . . . . . . . . . . . . . . . . . . . . . . . 12

Decrease in amount of child support arrearage triggering passport denial . . . . . 13

Use of tax refund intercept program to collect past-due child support on behalf
    of children who are not minors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Garnishment of compensation paid to veterans for service-connected disabilities
    in order to enforce child support obligations . . . . . . . . . . . . . . . . . . . . . . . 14

Improving federal debt collection practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Maintenance of technical assistance funding . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Maintenance of Federal Parent Locator Service funding (FPLS) . . . . . . . . . . . . 16

Identification and seizure of assets held by multi-state financial institutions . . . 17

Information comparisons with Insurance data . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Tribal access to the Federal Parent Locator Service . . . . . . . . . . . . . . . . . . . . . . 18

Reimbursement of Secretary's costs of information comparisons and disclosure
    for enforcement of obligations on higher education act loans and grants . . 19

Technical amendment relating to cooperative agreements between states and
    Indian tribes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Claims upon longshore and harbor workers' compensation for child support
     . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

State option to use statewide automated data processing and information
     retrieval system for interstate cases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

State law requirement concerning the Uniform Interstate Family Support
     Act (UIFSA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Grants to states for access and visitation programs . . . . . . . . . . . . . . . . . . . . . . 23

Timing of corrective action year for state noncompliance with CSE
    program requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Requirement that state child support enforcement agencies seek medical support
    for children from either parent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Notice to state child support enforcement agency from health care plan
      administrator under certain circumstances when a child loses health
     care coverage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Authority to continue state program for monitoring and enforcement of child
    support orders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Technical amendment relating to information comparisons and
    disclosure to assist in federal debt collection . . . . . . . . . . . . . . . . . . . . . . . . 27

List of Tables
Table 1. Comparison of Current Law with S. 667, the "Personal Responsibility
    and Individual Development for Everyone Act (PRIDE)" as Reported by
    the Senate Finance Committee and H.R. 240, the "Personal
    Responsibility, Work and Family Promotion Act of 2005": Child
    Support Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
    Child Support Enforcement: Side-by-Side
    Comparison of Current Law and Welfare
              Reauthorization Bills
             (S. 667 and H.R. 240)

                                  Introduction
      In the 109th Congress, the Senate Finance Committee and the House Ways and
Means Subcommittee on Human Resources have approved legislation that would
reauthorize and revise the Temporary Assistance for Needy Families (TANF) Block
Grant.1 This legislation, S. 667 and H.R. 240, also includes many changes to the
Child Support Enforcement (CSE) program, a component of the government's social
safety net. In 1996, Congress passed significant changes to the CSE program as part
of its reform of welfare. S. 667 was reported by the Senate Finance Committee on
March 17, 2005 (S.Rept. 109-51). H.R. 240 was approved by the House Ways and
Means Subcommittee on Human Resources on March 15, 2005.


       Overview of the Child Support Enforcement
                        Program
Background
      The CSE program, Part D of Title IV of the Social Security Act, was enacted in
January 1975 (P.L. 93-647). The CSE program is administered by the Office of
Child Support Enforcement (OCSE) in the Department of Health and Human
Services (HHS), and funded by general revenues. All 50 states, the District of
Columbia, Guam, Puerto Rico, and the Virgin Islands operate CSE programs and are
entitled to federal matching funds. The following families automatically qualify for
CSE services (free of charge): families receiving TANF benefits (Title IV-A), foster
care payments (Title IV-E), or Medicaid coverage (Title XIX).2 Collections on
behalf of families receiving TANF benefits are used to reimburse state and federal
governments for TANF payments made to the family. Other families must apply for

1
 For background and current status of this legislation, see CRS Issue Brief IB10140,
Welfare Reauthorization: Overview of the Issues, by Gene Falk, Melinda Gish, Carmen
Solomon-Fears.
2
  In addition, several states have opted to require food stamp households to cooperate with
the CSE agency in establishing paternity and establishing and enforcing child support
obligations. These food stamp households also receive CSE services automatically, free of
charge.
                                          CRS-2

CSE services, and states must charge an application fee that cannot exceed $25.
Child support collected on behalf of nonwelfare families goes to the family (usually
through the state disbursement unit).

     Between FY1978 and FY2003, child support payments collected by CSE
agencies increased from $1 billion in FY1978 to $21.2 billion in FY2003, and the
number of children whose paternity was established (or acknowledged) increased by
1,274%, from 111,000 to 1.525 million. However, the program still collects only
18% of child support obligations for which it has responsibility3 and collects
payments for only 50% of its caseload. OCSE data indicate that in FY2003, paternity
had been established or acknowledged for about 77% of the nearly 10.0 million
children on the CSE caseload without legally identified fathers.

      The CSE program is estimated to handle at least 50% of all child support cases;
the remaining cases are handled by private attorneys, collection agencies, or through
mutual agreements between the parents.

Services
      The CSE program provides seven major services on behalf of children: (1)
parent location, (2) paternity establishment, (3) establishment of child support orders,
(4) review and modification of support orders, (5) collection of support payments, (6)
distribution of support payments, and (7) establishment and enforcement of medical
support.

Enforcement Techniques
     Collection methods used by CSE agencies include income withholding,
intercept of federal and state income tax refunds, intercept of unemployment
compensation, liens against property, security bonds, and reporting child support
obligations to credit bureaus. All jurisdictions also have civil or criminal contempt-
of-court procedures and criminal nonsupport laws. Building on legislation (P.L. 102-
521) enacted in 1992, P.L. 105-187, the Deadbeat Parents Punishment Act of 1998,
established two new federal criminal offenses (subject to a two-year maximum prison
term) with respect to noncustodial parents who repeatedly fail to financially support
children who reside with custodial parents in another state or who flee across state
lines to avoid supporting them.

      P.L. 104-193 required states to implement expedited procedures that allow them
to secure assets to satisfy an arrearage by intercepting or seizing periodic or lump
sum payments (such as unemployment and workers' compensation), lottery winnings,
awards, judgements, or settlements, and assets of the debtor parent held by public or
private retirement funds, and financial institutions. It required states to implement
procedures under which the state would have authority to withhold, suspend, or
restrict use of driver's licenses, professional and occupational licenses, and


3
 In FY2003, $122.9 billion in child support obligations ($27.1 billion in current support and
$95.8 billion in past-due support) were owed to families receiving CSE services, but only
$22.2 billion was paid ($15.7 billion current, $6.5 billion past-due).
                                         CRS-3

recreational and sporting licenses of persons who owe past-due support or who fail
to comply with subpoenas or warrants relating to paternity or child support
proceedings. It also required states to conduct quarterly data matches with financial
institutions in the state in order to identify and seize the financial resources of debtor
noncustodial parents. P.L. 104-193 authorized the Secretary of State to deny, revoke,
or restrict passports of debtor parents. P.L. 104-193 also required states to enact and
implement the Uniform Interstate Family Support Act (UIFSA), and expand full faith
and credit procedures. P.L. 104-193 also clarified which court has jurisdiction in
cases involving multiple child support orders.

Financing
     The federal government currently reimburses each state 66% of the cost of
administering its CSE program. It also refunds states 90% of the laboratory costs of
establishing paternity. In addition, the federal government pays states an incentive
payment to encourage them to operate effective programs. P.L. 104-193 required the
HHS Secretary in consultation with the state CSE directors to develop a new cost-
neutral system of incentive payments to states. P.L. 105-200, the Child Support
Performance and Incentive Act of 1998, established a new cost-neutral incentive
payment system.4 The statutory limit of CSE incentive payments for FY2005 is $446
million.


    S. 667 and H.R. 240: Major Provisions Related to
               Child Support Enforcement
Background
     Over the years, the CSE program has evolved into a multifaceted program.
While cost-recovery still remains an important function of the program, other aspects
of the program include service delivery and promotion of self-sufficiency and
parental responsibility.

     The CSE program has helped strengthen families by securing financial support
for children from their noncustodial parent on a consistent and continuing basis and
by helping some families to remain self-sufficient and off public assistance by
providing the requisite CSE services. Child support payments now are generally
recognized as a very important income source for single-parent families. On average
child support constitutes 17% of family income for households that receive it (2001
data). Among poor families who receive it, child support constitutes about 30% of
family income (2001 data).5



4
 Before FY2002 child support incentive payments were paid out of the federal share of
child support collections made on behalf of TANF families. As of Oct. 1, 2001, child
support incentive payments are paid with appropriated funds.
5
 Elaine Sorensen, Child Support Gains Some Ground, Urban Institute, Snapshots of
America's Families III, no. 11, Oct. 2003.
                                        CRS-4

      Both S. 667 and H.R. 240 seek to improve the CSE program and raise
collections so as to increase the economic independence of former welfare families
and provide a stable source of income for all single-parent families with a
noncustodial parent. Although both bills share identical objectives with respect to
simplifying CSE assignment and distribution rules and strengthening the "family-
first" policies started in the1996 welfare reform law, the approaches used differ.
Both bills revise some CSE enforcement tools and add others. The Senate Finance
Committee-reported bill includes a larger list of CSE provisions than does the House
Subcommittee bill. This section of the report does not discuss all of the CSE
provisions included in S. 667 and H.R. 240. For a description of all of the CSE
provisions in S. 667 as reported by the Senate Finance Committee and H.R. 240 as
approved by the House Ways and Means Subcommittee on Human Resources, see
Table 1 in the last section of this report, which provides a side-by-side bill
comparison.

Assignment of Child Support Rights
     As a condition of receiving TANF benefits, a family must assign their child
support rights to the state. Assignment rules determine who has legal claim on the
child support payments owed by the noncustodial parent. The child support
assignment covers any child support that accrues while the family receives TANF
benefits as well as any child support that accrued before the family started receiving
TANF benefits. Assigned child support collections are not paid to families, but
rather this revenue is kept by states and the federal government as partial
reimbursement for welfare benefits. Nonwelfare families who apply for CSE
services do not assign their child support rights to the state and thereby receive all of
the child support collected on their behalf.

     An extremely important feature of the assignment process is the date on which
an assignment was entered. If the assignment was entered on or before September
30, 1997, then pre-assistance and during-assistance arrearages are "permanently
assigned" to the state. If the assignment was entered on or after October 1, 1997,
then only the arrearages which accumulate while the family receives assistance are
"permanently assigned." The family's pre-assistance arrearages are "temporarily
assigned" and the right to those arrearages goes back to the family when it leaves
TANF (unless the arrearages are collected through the federal income tax refund
offset program).

      Under S. 667 as reported by the Senate Finance Committee, the child support
assignment would only cover any child support that accrues while the family receives
TANF benefits. This would mean that any child support arrearages that accrued
before the family started receiving TANF benefits would not have to be assigned to
the state (even temporarily) and thereby any child support collected on behalf of the
former-TANF family for pre-assistance arrearages would go to the family. In
contrast, H.R. 240 as approved by the House Ways and Means Subcommittee on
Human Resources does not make any changes regarding the child support assignment
rules.
                                          CRS-5

Distribution of Child Support
     Distribution rules determine the order in which child support collections are
paid in accordance with the assignment rules. In other words, the distribution rules
determine which claim is paid first when a child support collection occurs. The order
of payment of the child support collection is of tremendous importance because in
many cases past-due child support (i.e., arrearages) are never fully paid.

     TANF Families. While the family receives TANF benefits, the state is
permitted to retain any current support and any assigned arrearages it collects up to
the cumulative amount of TANF benefits which has been paid to the family. The
1996 welfare law (P.L. 104-193) repealed the $50 required pass through6 and gave
states the choice to decide how much, if any, of the state share (some, all, none) of
child support payments collected on behalf of TANF families to send the family.
States also decide whether to treat child support payments as income to the family.
While states have discretion over their share of child support collections, P.L. 104-
193 required states to pay the federal government the federal government's share of
child support collections collected on behalf of TANF families. This means that the
state, and not the federal government, bears the entire cost of any child support
passed through to (and disregarded by) families. As of August 2004, 18 states were
continuing the $50 (or higher in one state) pass-through and disregard policy that had
been in effect pre-1996.7

      Both bills would provide incentives (in the form of federal cost sharing) to states
to direct more of the child support collected on behalf of TANF families to the
families themselves (often referred to as a "family-first" policy), as opposed to using
such collections to reimburse state and federal coffers for welfare benefits paid to the
families. However, the approaches of the bills differ with respect to the amount of
federal cost-sharing provided and whether to help states pay for the current cost of
their CSE pass-through and disregard policies or to encourage states to establish such
policies or increase the pass-through and disregard already in place.

      Under S. 667 as reported by the Senate Finance Committee, the federal
government would share in the costs of the entire amount of pass-through and
disregard policies used by states. S. 667 would allow states to pay up to $400 per
month in child support collected on behalf of a TANF (or foster care) family ($600
per month to a family with two or more children) to the family and would not require
the state to pay the federal government the federal share of those payments. In order
for the federal government to share in the cost of the child support pass-through, the


6
 Under old law, the first $50 of current monthly child support payments collected on behalf
of an Aid to Families with Dependent Children (AFDC) family was given to the family and
disregarded as income so that it did not affect the family's AFDC eligibility or benefit
status.
7
 The 17 states with the $50 pass-through and disregard policy are: AK, CA, CT, DE, IL,
KY, ME, MA, MI, NJ, NM, NY, PA, RI, TX, VT, and VA. Wisconsin passes through and
disregards all child support payments. Three states, GA, SC, and TN, pass though and
disregard some or all child support for purposes of their "fill-the-gap budgeting" policies.
West Virginia passes through and disregards up to $25 per month.
                                         CRS-6

state would be required to disregard (i.e., not count) the child support collection paid
to the family in determining the family's TANF benefit.

     Unlike S. 667, the House bill is intended to provide states with an incentive to
increase their pass-through and disregard policies. H.R. 240, as approved by the
House Subcommittee on Human Resources, would allow states to increase the
amount of collected child support they pay to families receiving TANF benefits and
would not require the state to pay the federal government the federal share of the
increased payments. The subsidized child support pass-through payments would be
the amount above any payments the state was making on December 31, 2001. The
House bill would limit the federal government's cost-sharing of the new pass-through
payments to the greater of $100 per month or $50 per month more than the state
previously was sharing with the family. In order for the federal government to share
in the cost of an increase in the child support pass-through, the state would be
required to disregard (i.e., not count) the child support collection paid to the family
in determining the family's TANF benefit.

      Former TANF Families. Pursuant to the 1996 welfare reform law (P.L. 104-
193), beginning on October 1, 2000, states must distribute to former TANF families
the following child support collections first before the state and the federal
government are reimbursed (this is often referred to as the "family-first" policy): (1)
all current child support, (2) any child support arrearages that accrue after the family
leaves TANF (these arrearages are called never-assigned arrearages), plus (3) any
arrearages that accrued before the family began receiving TANF benefits.8 (Any
child support arrearages that accrue during the time the family is on TANF belong
to the state and federal government.)

     One of the goals of the 1996 welfare reform law with regard to CSE distribution
provisions was to create a distribution priority that favored families once they leave
the TANF rolls. Thus, generally speaking, under current law, child support that
accrues before and after a family receives TANF goes to the family, whereas child
support that accrues while the family is receiving TANF goes to the state. This
additional family income is expected to reduce dependence on public assistance by
both promoting exit from TANF and preventing entry and re-entry to TANF.

     S. 667 as reported by the Senate Finance Committee would give states the
option of distributing to former TANF families the full amount of child support
collected on their behalf (i.e., both current support and all child support arrearages
-- including arrearages collected through the federal income tax refund offset
program). S. 667 would simplify the CSE distribution process and eliminate the
special treatment of child support arrearages collected through the federal income tax
refund offset program. Under S. 667 the federal government would share with the
states the costs of paying child support arrearages to the family first.



8
  As mentioned above, these rules do not apply to child support collections obtained by
intercepting federal income tax refunds. If child support arrearages are collected via the
federal income tax refund offset program, current law stipulates that the state and federal
government are to retain those collections.
                                        CRS-7

      Similarly, H.R. 240 would give states the option of distributing to former TANF
families the full amount of child support collected on their behalf. Under the House
bill, the federal government would share with the states the costs of paying child
support arrearages accrued while the family received TANF as well as costs
associated with passing through to the family child support collected through the
federal income tax refund offset program, if the state chose the "family-first" option.

Expansion of Collection/Enforcement Tools
     Both bills include identical or similar provisions with respect to (1) lowering the
threshold amount for denial of a passport to a noncustodial parent who owes past-due
child support; (2) facilitating the collection of child support from Social Security
benefits; (3) easing the collection of child support from veterans' benefits; (4)
allowing states to use the federal income tax refund offset program to collect past-due
child support for persons not on TANF who are no longer minors; (5) authorizing the
HHS Secretary to compare information of noncustodial parents who owe past-due
child support with information maintained by insurers concerning insurance
payments and to furnish any information resulting from a match to CSE agencies so
they can pursue child support arrearages; and (6) allowing an assisting state to
establish a child support interstate case based on another state's request for assistance
(thereby enabling an assisting state to use the CSE statewide automated data
processing and information retrieval system for interstate cases).

     Additional provisions that would expand and/or enhance the ability of states to
collect child support payments are contained in S. 667 as reported by the Senate
Finance Committee. They include: (1) authorizing the HHS Secretary to act on
behalf of states to seize financial assets (held by a multi-state financial institution)
of noncustodial parents who owe child support; (2) requiring that medical support for
a child be provided by either or both parents; and (3) requiring the CSE agency to
notify health care plan administrators under certain circumstances when a child loses
health care coverage.

Other Provisions
      Both bills include provisions that would (1) require states to review and if
appropriate adjust child support orders of TANF families every three years; (2)
require the HHS Secretary to submit a report to Congress on the procedures states use
to locate custodial parents for whom child support has been collected but not yet
distributed; (3) establish a minimum funding level for technical assistance; (4)
establish a minimum funding level for the Federal Parent Locator Service; and (5)
designate Indian tribes and tribal organizations as persons authorized to have access
to information in the Federal Parent Locator Service.

     H.R. 240 includes a provision that would establish a $25 annual fee for
individuals who have never been on TANF but receive CSE services and who
received at least $500 in any given year.

    S. 667 includes provisions that would (1) increase funding for the CSE access
and visitation program; (2) require states to adopt a later version of the Uniform
                                      CRS-8

Interstate Family Support Act (UIFSA) so as to facilitate the collection of child
support payments in interstate cases; and (3) allow the state of Texas to continue to
operate its CSE program for automatic monitoring and enforcement of court orders
on behalf of nonwelfare families without applying for a federal waiver.


       Detailed Comparison of CSE Provisions in
                  S. 667 and H.R. 240
     Table 1 provides a detailed and comprehensive comparison of the CSE
provisions of S. 667 as reported by the Senate Finance Committee and H.R. 240 as
approved by the House Ways and Means Subcommittee on Human Resources with
current law. The table specifies the section number in each of the bills in which the
provision is found.
                                                                CRS-9

    Table 1. Comparison of Current Law with S. 667, the "Personal Responsibility and Individual
 Development for Everyone Act (PRIDE)" as Reported by the Senate Finance Committee and H.R. 240,
  the "Personal Responsibility, Work and Family Promotion Act of 2005": Child Support Provisions

                                                                                                      H.R. 240 (as approved by the House
                                                           S. 667 (as reported by the Senate          Ways and Means Subcommittee on
                           Current law                           Finance Committee)                           Human Resources)
Assignment of   In order to receive benefits,          Stipulates that the assignment covers only     No provision.
child support   Temporary Assistance to Needy          child support that accrues during the period
rights          Families (TANF) recipients must        that the family receives TANF. (In other
                assign their child support rights to   words, pre-assistance arrearages would be
                the state. The assignment covers       eliminated from the assignment.) [Section
                any child support that accrues         301(a)]
                while the family receives TANF
                and any support that accrued
                before the family began receiving
                TANF.
                Any assignment of rights to child      Gives states the option to discontinue pre-
                support that was in effect on          assistance assignments in effect on
                September 30, 1997 must remain         September 30, 1997, or pre-assistance
                in effect. This means that any         arrearage assignments in effect after
                child support collected as a result    September 30, 1997 and before the
                of the assignment is owed to the       implementation date of this provision. If a
                state and the federal government.      state chooses to discontinue the child
                                                       support assignment, the state would have to
                                                       give up its legal claim to collections based
                                                       on such arrearages and the state would have
                                                       to distribute the collections to the family.
                                                       [Section 301(c)]
                                                                   CRS-10

                                                                                                           H.R. 240 (as approved by the House
                                                               S. 667 (as reported by the Senate           Ways and Means Subcommittee on
                               Current law                           Finance Committee)                            Human Resources)
Federal matching     While the family receives TANF        Same as current law.                            Same as current law.
funds for limited    benefits, the state is permitted to
pass through of      retain any current child support
child support        payments and any assigned
payments to          arrearages it collects up to the
families receiving   cumulative amount of TANF
TANF                 benefits which has been paid to the
                     family (i.e., state decides how
                     much of the state share (some, all,
                     none) of the child support payment
                     collected on behalf of TANF
                     families to send to the family.
                     The state is required to pay the      For families who received assistance from       For TANF families, requires the federal
                     federal government the federal        the state (which could include TANF or          government to waive its share of an
                     share of the child support            foster care), requires the federal government   increase in the child support pass-
                     collected.                            to waive its share of child support             through (up to the greater of $100 per
                                                           collections passed through to TANF              month or $50 over the state's stipulated
                     Child support payments collected      families by the state and disregarded by the    child support pass-through as of
                     on behalf of TANF families that       state -- up to an amount equal to $400 per      December 31, 2001) for families that
                     are passed through to the family      month in the case of a family with one          receive TANF benefits. To obtain the
                     and disregarded by the state count    child, and up to $600 per month in the case     federal matching funds, the state would
                     toward the TANF Maintenance-of-       of a family with two or more children. Like     have to disregard the amount passed
                     Effort (MOE) expenditure              current law, disregarded pass-through           through to the family in determining the
                     requirement.                          amounts would count as TANF MOE                 family's TANF benefit amount. This
                                                           expenditures. [Section 301(b)]                  provision would apply to amounts
                                                                                                           distributed on or after October 1, 2007.
                                                           Allows states with Section 1115                 [Section 301]
                                                           demonstration waivers (on or before
                                                           October 1, 1997) related to the child support
                                                           pass-through provisions to continue to pass
                                                           through payments to families in accordance
                                                           with the terms of the waiver. [Section
                                                           301(b)]
                                                                      CRS-11

                                                                                                              H.R. 240 (as approved by the House
                                                                 S. 667 (as reported by the Senate            Ways and Means Subcommittee on
                               Current law                             Finance Committee)                             Human Resources)
State option to     Current child support payments           Simplifies child support distribution rules.     Gives states the option of providing
pass through all    must be paid to the family if the        Eliminates the special treatment of child        families that have left TANF the full
child support       family is no longer on TANF.             support arrearages collected through the         amount of the child support collected on
payments to                                                  federal income tax refund offset program.        their behalf (i.e., both current child
families that       With respect to former TANF              Therefore, all child support collections to      support and child support arrearages).
formerly received   families: Since October 1, 1997,         former TANF families would go to the             The federal government would have to
TANF                child support arrearages that            family first. [Section 301(b)]                   share with the states the costs of paying
                    accrue after the family leaves                                                            child support arrearages to the family
                    TANF also are required to be paid        To the extent that the arrearage amount          first. This provision would apply to
                    to the family before any monies          payable to a former TANF family in any           amounts distributed on or after October
                    may be retained by the state.            given month exceeds the amount that would        1, 2007. [Section 302]
                                                             have been payable to the family under
                    With respect to former TANF              current law, the state would be able to elect
                    families: Since October 1, 2000,         to have the amount paid to the family
                    child support arrearages that            considered an expenditure for Maintenance-
                    accrued before the family began          of-Effort (MOE) purposes. In addition,
                    receiving TANF also are required         amends the CSE State Plan to include an
                    to be distributed to the family first.   election by the state to include whether it is
                                                             using the new option to pass through all
                    However, if child support                arrearage payments to former TANF
                    arrearages are collected through         families without paying the federal
                    the federal income tax refund            government its share of such collections or
                    offset program, the family does          whether it has chosen to maintain the
                    not have first claim on the              current law distribution method. Stipulates
                    arrearage payments.          Such        that no later than six months after the date
                    arrearage payments are retained by       of enactment of this legislation, the Health
                    the state and the federal                and Human Services (HHS) Secretary, in
                    government.                              consultation with the states, would be
                                                             required to establish the procedures to be
                                                             used to make estimates of excess costs
                                                             associated with the new funding option.
                                                             [Section 301(b)]

                                                             The provisions of Section 301 of this bill
                                                             would take effect October 1, 2009, or earlier
                                                                    CRS-12

                                                                                                          H.R. 240 (as approved by the House
                                                                S. 667 (as reported by the Senate         Ways and Means Subcommittee on
                                Current law                           Finance Committee)                          Human Resources)
                                                            at state option -- at any date that is 18
                                                            months after the date of enactment of the
                                                            bill but not later than September 30, 2009.
                                                            [Section 301(e)]

Mandatory            Federal law requires that the state    Requires states to review and, if             Same as S. 667. [Section 303]
review and           have procedures under which            appropriate, adjust child support orders in
adjustment of        every three years the state review     TANF cases every three years. This
child support        and adjust (if appropriate) child      provision would take effect on October 1,
orders for           support orders at the request of       2007. [Section 302]
families receiving   either parent, and that in the case
TANF                 of TANF families, the state review
                     and update (if appropriate) child
                     support orders at the request of the
                     state CSE agency or of either
                     parent.
Mandatory fee for    Federal law requires that non-         No provision.                                 Requires families that have never been
successful child     welfare families must apply for                                                      on TANF to pay a $25 annual user fee
support collection   CSE services, and states must                                                        when child support enforcement efforts
for family that      charge an application fee that                                                       on their behalf are successful (i.e., at
has never            cannot exceed $25. The state may                                                     least $500 annually is collected on their
received TANF        charge the application fee against                                                   behalf). Such fees could be recovered
                     the custodial parent, pay the fee                                                    from the custodial parent, the
                     out of state funds, or recover it                                                    noncustodial parent, or the state (with
                     from the noncustodial parent. In                                                     state funds). This provision would take
                     addition, states have the option of                                                  effect on October 1, 2006. [Section
                     recovering costs in excess of the                                                    304]
                     application fee. Such recovery
                     may be from either the custodial
                     parent or the noncustodial parent.
Report on            No provision.                          Requires that within six months of            Same as S. 667. [Section 305]
undistributed                                               enactment, the HHS Secretary must submit
child support                                               to the House Ways and Means Committee
payments                                                    and the Senate Finance Committee a report
                                                                 CRS-13

                                                                                                         H.R. 240 (as approved by the House
                                                            S. 667 (as reported by the Senate            Ways and Means Subcommittee on
                              Current law                         Finance Committee)                             Human Resources)
                                                        on the procedures states use to locate
                                                        custodial parents for whom child support
                                                        has been collected but not yet distributed.
                                                        The report must include an estimate of the
                                                        total amount of undistributed child support
                                                        and the average length of time it takes
                                                        undistributed child support to be distributed.
                                                        To the extent the Secretary deems
                                                        appropriate, the report must include
                                                        recommendations as to whether additional
                                                        procedures should be established at the state
                                                        or federal level to expedite the payment of
                                                        undistributed child support. [Section 303]

Decrease in         Federal law stipulates that the     Authorizes the denial, revocation, or            Same as S. 667. [Section 306]
amount of child     HHS Secretary is required to        restriction of passports to noncustodial
support arrearage   submit to the Secretary of State    parents whose child support arrearages
triggering          the names of noncustodial parents   exceed $2,500, rather than $5,000 as under
passport denial     who have been certified by the      current law. This provision would take
                    state CSE agency as owing more      effect on October 1, 2006. [Section 304]
                    than $5,000 in past-due child
                    support. The Secretary of State
                    has authority to deny, revoke,
                    restrict, or limit passports to
                    noncustodial parents whose child
                    support arrearages exceed $5,000.
                                                                    CRS-14

                                                                                                           H.R. 240 (as approved by the House
                                                                S. 667 (as reported by the Senate          Ways and Means Subcommittee on
                                Current law                           Finance Committee)                           Human Resources)
Use of tax refund     Federal law prohibits the use of      Permits the federal income tax refund offset   Same as S. 667. [Section 307]
intercept program     the federal income tax offset         program to be used to collect arrearages on
to collect past-due   program to recover past-due child     behalf of non-welfare children who are no
child support on      support on behalf of non-welfare      longer minors. This provision would take
behalf of children    cases in which the child is not a     effect on October 1, 2007. [Section 305]
who are not           minor, unless the child was
minors                determined disabled while he or
                      she was a minor and for whom the
                      child support order is still in
                      effect. (Since enactment in 1981
                      (P.L. 97-35), the federal income
                      tax offset program has been used
                      to collect child support arrearages
                      on behalf of welfare families
                      regardless of whether the children
                      were still minors -- as long as the
                      child support order was in effect.)
Garnishment of        The disability compensation           Allows veterans' disability compensation       Allows veterans' disability
compensation          benefits of veterans are treated      benefits to be intercepted (withheld) and      compensation benefits to be intercepted
paid to veterans      differently than most forms of        paid on a routine basis to the custodial       (withheld) and paid on a routine basis to
for service-          government payment for purposes       parent.     This provision prohibits the       the custodial parent if the veteran is 60
connected             of paying child support. Whereas      garnishment of any veteran's disability        days or more in arrears on child support
disabilities in       most government payments are          compensation in order to collect alimony       payments. This provision is prohibited
order to enforce      subject to being automatically        unless that disability compensation is being   from being used to collect alimony and
child support         withheld to pay child support,        paid because retirement benefits were          no more than 50% of any particular
obligations           veterans disability compensation is   waived. The provision would take effect on     disability payment may be withheld.
                      not subject to intercept. Before      October 1, 2007. [Section 306]                 This provision would take effect on
                      enactment of P.L. 108-136, there                                                     October 1, 2007. [Section 308]
                      was one exception to this rule.
                      The exception occurred when
                      veterans had elected to forego
                      some of their retirement pay in
                      order to collect additional
                      disability payments.          The
                                                                    CRS-15

                                                                                                             H.R. 240 (as approved by the House
                                                               S. 667 (as reported by the Senate             Ways and Means Subcommittee on
                               Current law                           Finance Committee)                              Human Resources)
                    advantage of veterans replacing
                    retirement pay with disability pay
                    is that the disability pay is not
                    subject to taxation. With this
                    exception, the only way to obtain
                    child support payments from
                    veterans' disability compensation
                    was to request that the Secretary of
                    the Department of Veteran Affairs
                    intercept the disability
                    compensation and make the child
                    support payments. P.L. 108-136,
                    enacted November 24, 2003,
                    permits veterans to receive both
                    military retired pay and veterans'
                    disability compensation.
Improving federal   Federal law stipulates that any        Similar to H.R. 240, but only allows Social       Expands the federal administrative
debt collection     federal agency that is owed a          Security benefits to be offset to collect past-   offset program by allowing Social
practices           nontax debt (that is more than 180     due child support. The Committee bill             Security benefits, certain Black Lung
                    days past-due) must notify the         specifically overrules section 207 of the         benefits, and certain Railroad
                    Secretary of the Treasury to obtain    Social Security Act which states that Social      Retirement Board benefits (RR) to be
                    an administrative offset of the        Security benefits are not transferrable by        offset to collect past-due child support
                    debt. The Department of the            garnishment. The provision would take             (on behalf of families receiving CSE
                    Treasury (or other designated          effect on a date that is 18 months after the      [Title IV-D of the Social Security Act]
                    federal disbursing agency) has the     date of enactment. [Section 307]                  services) in appropriate cases selected
                    authority to offset Social Security                                                      by the states. This provision would take
                    benefits, certain Black Lung Board                                                       effect on October 1, 2006. [Section
                    benefits, and certain Railroad                                                           309]
                    Retirement benefits to collect
                    delinquent debt owed to the
                    United States, subject to an annual
                    $9,000 ($750 per month)
                    exemption.
                                                                    CRS-16

                                                                                                          H.R. 240 (as approved by the House
                                                                S. 667 (as reported by the Senate         Ways and Means Subcommittee on
                                Current law                           Finance Committee)                          Human Resources)
                     Currently, states have the authority
                     to garnish Social Security benefits
                     for child support payments. But,
                     Social Security payments can only
                     be offset for federal debt recovery.
                     (Thus, under current law child
                     support arrearage payments which
                     are enforced by states cannot be
                     offset from Social Security
                     benefits/payments.)
Maintenance of       Federal law appropriates an            Changes the amount available for technical    Same as S. 667. [Section 310]
technical            amount equal to 1% of the federal      assistance funding to an amount equal to 1%
assistance funding   share of child support collected on    of the federal share of child support
                     behalf of TANF families the            collected or the amount appropriated for
                     preceding year for the Secretary to    FY2002, whichever is greater. [Section
                     provide to the states for:             308]
                     information dissemination and
                     technical assistance, training of
                     state and federal staff, staffing
                     studies, and related activities
                     needed to improve CSE programs
                     (including technical assistance
                     concerning state automated CSE
                     systems), and research
                     demonstration and special projects
                     of regional or national significance
                     relating to the operation of CSE
                     programs.        Such funds are
                     available until they are expended.
Maintenance of       Federal law appropriates an            Changes the amount available for the FPLS     Same as S. 667. [Section 311]
Federal Parent       amount equal to 2% of the federal      to an amount equal to 2% of the federal
Locator Service      share of child support collected on    share of child support collected or the
funding (FPLS)       behalf of TANF families the            amount appropriated for FY2002,
                                                                            CRS-17

                                                                                                                    H.R. 240 (as approved by the House
                                                                       S. 667 (as reported by the Senate            Ways and Means Subcommittee on
                                  Current law                                Finance Committee)                             Human Resources)
                     preceding year for the Secretary to           whichever is greater. Makes all funds
                     use for operation of the FPLS to              appropriated for this purpose available until
                     the extent that the costs of the              expended. [Section 309]
                     FPLS are not recovered by user
                     fees. Funds that were appropriated
                     for FY1997-FY2001 remain
                     available until expended.

Identification and   The 1996 welfare reform law                   Authorizes the HHS Secretary, via the            No provision.
seizure of assets    required states to enter into                 FPLS, to assist states to perform data
held by multi-       agreements with financial                     matches comparing information from states
state financial      institutions conducting business              and participating multi-state financial
institutions         within their state for the purpose            institutions with respect to persons owing
                     of conducting a quarterly data                past-due child support. Authorizes the
                     match. The data match is intended             Secretary via the FPLS to seize assets, held
                     to identify financial accounts (in            by such financial institutions, of
                     banks, credit unions,                         noncustodial parents who owe child support
                     money-market mutual funds, etc.)              arrearage payments, by issuing a notice of a
                     belonging to parents who are                  lien or levy and requiring the financial
                     delinquent in the payment of their            institution to freeze and seize assets in
                     child support obligation. In some             accounts in multi-state financial institutions
                     cases, state law prohibits the                to satisfy child support obligations.
                     placement of liens or levies on               Requires the Secretary to transmit any
                     accounts outside of the state and             assets seized under the procedure to the
                     some financial institutions only              state for accounting and distribution.
                     accept liens and levies from the              Stipulates that the Secretary must inform
                     state where the account is located.           affected account holders/ asset holders of
                     In 1998, Congress made it easier              their due process rights. (In effect, the
                     f o r mu l t i -s t a t e f i n a n c i a l   Committee bill would resolve problems of
                     institutions to match records by              jurisdiction in cases where a state was
                     permitting the FPLS to help them              pursuing an asset in a different state.)
                     coordinate their information.                 [Section 310]
Information          No provision.                                 Authorizes the HHS Secretary, via the            Same as S. 667. [Section 312]
comparisons with                                                   FPLS, to compare information of
                                                                CRS-18

                                                                                                       H.R. 240 (as approved by the House
                                                            S. 667 (as reported by the Senate          Ways and Means Subcommittee on
                             Current law                          Finance Committee)                           Human Resources)
Insurance data                                          noncustodial parents who owe past-due
                                                        child support with information maintained
                                                        by insurers (or their agents) concerning
                                                        insurance claims, settlements, awards, and
                                                        payments; and to furnish any information
                                                        resulting from a match to the appropriate
                                                        state CSE agency in order to secure
                                                        settlements, awards, etc. for payment of
                                                        past-due child support. Stipulates that no
                                                        insurer would be liable under federal or
                                                        state law for disclosures made in good faith
                                                        of this provision. [Section 311]

Tribal access to   The FPLS is a national location      Includes Indian tribes and tribal              Same as S. 667. [Section 313]
the Federal        system operated by the federal       organizations that operate a CSE program as
Parent Locator     Office of Child Support              "authorized persons." [Section 312]
Service            Enforcement to assist states in
                   locating noncustodial parents,
                   putative fathers, and custodial
                   parties for the establishment of
                   paternity and child support
                   obligations, as well as the
                   enforcement and modification of
                   orders for child support, custody
                   and visitation. It also identifies
                   support orders or support cases
                   involving the same parties in
                   different states.     The FPLS
                   consists of the Federal Case
                   Registry, Federal Offset Program,
                   Multi-state Financial Institution
                   Data Match, National Directory of
                   New Hires, and the Passport
                   Denial Program. Additionally, the
                   FPLS has access to external
                                                                CRS-19

                                                                                                      H.R. 240 (as approved by the House
                                                            S. 667 (as reported by the Senate         Ways and Means Subcommittee on
                             Current law                          Finance Committee)                          Human Resources)
                   sources such as the Internal
                   Revenue Service (IRS), the Social
                   Security Administration (SSA),
                   Department of Veterans Affairs
                   (VA), the Department of Defense
                   (DOD), and the Federal Bureau of
                   Investigation (FBI). The FPLS is
                   only allowed to transmit
                   information in its databases to
                   "authorized persons," which
                   include (1) child support
                   enforcement agencies (and their
                   attorneys and agents); (2) courts,
                   (3) the resident parent, legal
                   guardian, attorney, or agent of a
                   child owed child support; and (4)
                   foster care and adoption agencies.

Reimbursement      Federal law (P.L. 106-113)           Amends the reimbursement of costs             Same as S. 667. [Section 314]
of Secretary's     authorized the Department of         provision by eliminating the word
costs of           Education to have access to the      "additional."   Thus, the Secretary of
information        National Directory of New Hires.     Education would be required to reimburse
comparisons and    The provisions were designed to      the HHS Secretary for any costs incurred by
disclosure for     improve the ability of the           the HHS Secretary in providing requested
enforcement of     Department of Education to collect   new hires information. [Section 313]
obligations on     on defaulted loans and grant
higher education   overpayments made to individuals
act loans and      under the Higher Education Act of
grants             1965.     Under the Computer
                   Matching Agreement, the
                   Secretary of Education is required
                   to reimburse the HHS Secretary
                   for the additional costs incurred
                   by the HHS Secretary in
                   furnishing requested information.
                                                                   CRS-20

                                                                                                       H.R. 240 (as approved by the House
                                                              S. 667 (as reported by the Senate        Ways and Means Subcommittee on
                               Current law                          Finance Committee)                         Human Resources)
Technical           Federal law requires that any state    Deletes the reference to child welfare      Same as S. 667. [Section 315]
amendment           that has a child welfare program       programs. [Section 314]
relating to         and that has Indian country may
cooperative         enter into a cooperative agreement
agreements          with an Indian tribe or tribal
between states      organization if the tribe
and Indian tribes   demonstrates that it has an
                    established tribal court system
                    with several specific
                    characteristics related to paternity
                    establishment and the
                    establishment and enforcement of
                    child support obligations. The
                    HHS Secretary may make direct
                    payments to Indian tribes and
                    tribal organizations that have
                    approved child support
                    enforcement plans.

Claims upon         The Longshore and Harbor               Amends the Longshore and Harbor             No provision.
longshore and       Worker's Compensation Act is the       Workers' Compensation Act to ensure that
harbor workers'     federal worker's compensation          longshore or harbor workers benefits that
compensation for    law for maritime workers and           are provided by the federal government or
child support       persons working in shipyards and       by private insurers are subject to
                    on docks, ships, and offshore          garnishment for purposes of paying child
                    drilling platforms. It exempts         support obligations. [Section 315]
                    benefits paid by longshore or
                    harbor employers or their insurers
                    from all claims of creditors. Thus,
                    Longshore and Harbor Worker's
                    Compensation Act benefits that
                    are paid by longshore or harbor
                    employers or their insurers are not
                    subject to attachment for payment
                    of child support obligations.
                                                                     CRS-21

                                                                                                             H.R. 240 (as approved by the House
                                                                S. 667 (as reported by the Senate            Ways and Means Subcommittee on
                                Current law                           Finance Committee)                             Human Resources)
State option to use   The 1996 welfare reform law           Allows an assisting state to establish a child   Same as S. 667. [Section 316]
statewide             mandated states to establish          support interstate case based on another
automated data        procedures under which the state      state's request for assistance; and thereby an
processing and        would use high-volume automated       assisting state would be able to use the CSE
information           administrative enforcement, to the    statewide automated data processing and
retrieval system      same extent as used for intrastate    information retrieval system for interstate
for interstate        cases, in response to a request       cases. [Section 316]
cases                 from another state to enforce a
                      child support order.           This
                      provision was designed to enable
                      child support agencies to quickly
                      locate and secure assets held by
                      delinquent noncustodial parents in
                      another state without opening a
                      full-blown interstate child support
                      enforcement case in the other
                      state. The assisting state must use
                      automatic data processing to
                      search various state data bases
                      including financial institutions,
                      license records, employment
                      service data, and state new hire
                      registries, to determine whether
                      information is available regarding
                      a parent who owes a child support
                      obligation. The assisting state is
                      then required to seize any
                      identified assets. This provision
                      does not allow states to
                      open/establish a child support
                      interstate case.
State law             The 1996 welfare reform law (P.L.     Requires that each state's Uniform               No provision.
requirement           104-193) required that on and after   Interstate Family Support Act (UIFSA)
concerning the        January 1, 1998, each state must      include any amendments officially adopted
                                                                    CRS-22

                                                                                                            H.R. 240 (as approved by the House
                                                                S. 667 (as reported by the Senate           Ways and Means Subcommittee on
                               Current law                            Finance Committee)                            Human Resources)
Uniform             have in effect the Uniform              as of August 2001 by the National
Interstate Family   Interstate Family Support Act           Conference of Commissioners on Uniform
Support Act         (UIFSA), as approved by the             State Laws.
(UIFSA)             American Bar Association on
                    February 9, 1993, and as in effect      Clarifies current law by stipulating that a
                    on August 22, 1996, including any       court of a state that has established a child
                    amendments officially adopted as        support order has continuing, exclusive
                    of such date by the National            jurisdiction to modify its order if the order
                    Conference of Commissioners on          is the controlling order and the state is the
                    Uniform State Laws.                     child's state or the residence of any
                                                            individual contestant; or if the state is not
                    Federal law requires states to treat    the residence of the child or an individual
                    past-due child support obligations      contestant, the court has the contestant's
                    as final judgments that are entitled    consent in a record or in open court that the
                    to full faith and credit in every       court may continue to exercise jurisdiction
                    state. This means that a person         to modify its order. Also modifies the
                    who has a child support order in        current rules regarding the enforcement of
                    one state does not have to obtain a     modified orders. [Section 317]
                    second order in another state to
                    obtain child support due should
                    the noncustodial parent move from
                    the issuing court's jurisdiction.
                    P.L. 103-383 restricts a state
                    court's ability to modify a child
                    support order issued by another
                    state unless the child and the
                    custodial parent have moved to the
                    state where the modification is
                    sought or have agreed to the
                    modification. The 1996 welfare
                    reform law (P.L. 104-193)
                    clarified the definition of a child's
                    home state, makes several
                    revisions to ensure that the full
                    faith and credit laws can be
                                                                  CRS-23

                                                                                                          H.R. 240 (as approved by the House
                                                              S. 667 (as reported by the Senate           Ways and Means Subcommittee on
                              Current law                           Finance Committee)                            Human Resources)
                   applied consistently with UIFSA,
                   and clarifies the rules regarding
                   which child support orders states
                   must honor when there is more
                   than one order.

Grants to states   The 1996 welfare reform law (P.L.      Increases funding for Access and Visitation     No provision.
for access and     104-193) authorized grants to          grants from $10 million annually to $12
visitation         states (via CSE funding) to            million in FY2006, $14 million in FY2007,
programs           establish and operate access and       $16 million in FY2008, and $20 million
                   visitation programs. The purpose       annually in FY2009 and each succeeding
                   of the grants is to facilitate         fiscal year. Extends the Access and
                   noncustodial parents' access to        Visitation program to Indian tribes and
                   and visitation of their children. An   tribal organizations that had received direct
                   annual entitlement of $10 million      child support enforcement payments from
                   from the federal CSE budget            the federal government for at least one year.
                   account is available to states for     Includes a specified amount to be set aside
                   these grants. Eligible activities      for Indian tribes and tribal organizations:
                   include but are not limited to         $250,000 for FY2006; $600,000 for
                   mediation, counseling, education,      FY2007; $800,000 for FY2008; and $1.670
                   development of parenting plans,        million for FY2009 or any succeeding fiscal
                   visitation enforcement, and            year.
                   development of guidelines for
                   visitation and alternative custody     Increases the minimum allotment to states
                   arrangements.       The allotment      to $120,000 in FY2006, $140,000 in
                   formula is based on the ratio of the   FY2007, $160,000 in FY2008, and
                   number of children in the state        $180,000 in FY2009 or any succeeding
                   living with only one biological        fiscal year. The minimum allotment for
                   parent in relation to the total        Indian tribes and tribal organizations would
                   number of such children in all         be $10,000 for a fiscal year. The tribal
                   states.     The amount of the          allotment would not be able to exceed the
                   allotment available to a state will    minimum state allotment for any given
                   be this same ratio to $10 million.     fiscal year.
                   The allotments are to be adjusted
                   to ensure that there is a minimum      The allotment formula for Indian tribes and
                                                                   CRS-24

                                                                                                            H.R. 240 (as approved by the House
                                                              S. 667 (as reported by the Senate             Ways and Means Subcommittee on
                              Current law                           Finance Committee)                              Human Resources)
                    allotment amount of $50,000 per       tribal organizations that operate child
                    state for FY1997 and FY1998, and      support enforcement programs would be
                    a minimum of $100,000 for any         based on the ratio of the number of children
                    year after FY1998. States may use     in the tribe or tribal organization living with
                    the grants to create their own        only one parent in relation to the total
                    programs or to fund programs          number of children living with only one
                    operated by courts, local public      parent in all Indian tribes or tribal
                    agencies, or nonprofit                organizations. The amount of the allotment
                    organizations. The programs do        available to an Indian tribe or tribal
                    not need to be statewide. States      organization would be this same ratio to the
                    must monitor, evaluate, and report    maximum allotment for Indian tribes and
                    on their programs in accord with      tribal organizations (i.e., $250,000 for
                    regulations issued by the HHS         FY2006; $600,000 for FY2007; $800,000
                    Secretary.                            for FY2008; and $1.670 million for FY2009
                                                          or any succeeding fiscal year). (Pro rata
                                                          reductions would be made if they are
                                                          necessary.) [Section 318]
Timing of           Federal law requires that audits be   Changes the timing of the corrective action       No provision.
corrective action   conducted at least every three        year for states that are found to be in
year for state      years to determine whether the        noncompliance of child support
noncompliance       standards and requirements            enforcement program requirements.
with CSE            prescribed by law and regulations     Changes the corrective action year to the
program             have been met by the child support    fiscal year following the fiscal year in
requirements        program of every state. If a state    which the Secretary made a finding of
                    fails the audit, federal TANF funds   noncompliance and recommended a
                    must be reduced by an amount          corrective action plan. This change would
                    equal to at least 1% but not more     be made retroactively in order to allow the
                    than 2% for the first failure to      Secretary to treat all findings of
                    comply, at least 2% but not more      noncompliance consistently. The provision
                    than 3% for the second failure, and   would take effect with respect to
                    at least 3% but not more than 5%      determinations of state compliance for
                    for the third and subsequent          FY2002 and succeeding fiscal years.
                    failures.                             [Section 319]
                                                                  CRS-25

                                                                                                         H.R. 240 (as approved by the House
                                                              S. 667 (as reported by the Senate          Ways and Means Subcommittee on
                              Current law                           Finance Committee)                           Human Resources)
                    The HHS Secretary also must
                    review state reports on compliance
                    with federal requirements and
                    provide         states       with
                    recommendations for corrective
                    action. The purpose of the audits
                    is to assess the completeness,
                    reliability, and security of data
                    reported for use in calculating the
                    performance indicators and to
                    assess the adequacy of financial
                    management of the state program.
                    Federal law calls for penalties to
                    be imposed against states that fail
                    to comply with a corrective action
                    plan in the succeeding fiscal year.
Requirement that    Federal law requires that a state     Requires that medical support for a child be   No provision.
state child         CSE agency issue a notice to the      provided by either or both parents and that
support             employer of a noncustodial parent,    it must be enforced. Includes language that
enforcement         who is subject to a child support     authorizes the state CSE agency to enforce
agencies seek       order issued by a court or            medical support against a custodial parent
medical support     administrative agency, informing      whenever health care coverage is available
for children from   the employer of the parent's          to the custodial parent at reasonable cost.
either parent       obligation to provide health care     Stipulates that medical support may include
                    coverage for the child(ren). The      health care coverage (including payment of
                    employer must then determine          costs of premiums, co-payments, and
                    whether family health care            deductibles) and payment of medical
                    coverage is available for which the   expenses incurred on behalf of a child.
                    dependent child(ren) may be           [Section 320]
                    eligible, and if so, the employer
                    must notify the plan administrator
                    of each plan covered by the
                    National Medical Support Notice.
                    If the dependent child(ren) is/are
                                                                    CRS-26

                                                                                                            H.R. 240 (as approved by the House
                                                                S. 667 (as reported by the Senate           Ways and Means Subcommittee on
                                Current law                           Finance Committee)                            Human Resources)
                     eligible for coverage under a plan,
                     the plan administrator is required
                     to enroll the dependent child(ren)
                     in an appropriate plan. The plan
                     administrator also must notify the
                     noncustodial parent's employer of
                     the premium amount to be
                     withheld from the employee's
                     paycheck.

Notice to state      Federal law requires the health        Requires the health care plan administrator     No provision.
child support        care plan administrator to notify      to notify the state CSE agency if the
enforcement          qualified beneficiaries of their       noncustodial parent with the health care
agency from          beneficiary rights with regard to      coverage dies, loses his or her job or is
health care plan     health care coverage when or if        working fewer hours, becomes eligible for
administrator        one of the following events            Medicaid benefits, or is involved in a
under certain        occurs:     (1) the noncustodial       bankruptcy proceeding pertaining to the
circumstances        parent with the health care            noncustodial parent's former employer. In
when a child loses   coverage dies; (2) the noncustodial    addition, requires the health care plan
health care          parent with the health care            administrator to notify the state CSE agency
coverage             coverage loses his or her job or       if the noncustodial parent with the health
                     starts working fewer hours; (3) the    care coverage gets divorced or obtains a
                     noncustodial parent with the health    legal separation, or if the noncustodial
                     care coverage becomes eligible for     parent's child ceases to be a dependent child
                     Medicaid benefits; (4) the             (in cases where the noncustodial parent has
                     noncustodial parent with the health    notified the plan administrator of such an
                     care coverage becomes involved in      occurrence). [Section 321]
                     a bankru p t c y proceeding
                     pertaining to his or her former
                     employer; (5) the noncustodial
                     parent with the health care
                     coverage gets divorced or obtains
                     a legal separation; or (6) the child
                     of the noncustodial parent with the
                     health care coverage ceases to be a
                                                                    CRS-27

                                                                                                           H.R. 240 (as approved by the House
                                                                S. 667 (as reported by the Senate          Ways and Means Subcommittee on
                               Current law                            Finance Committee)                           Human Resources)
                    dependent child. (With respect to
                    (5) and (6), the noncustodial
                    parent (i.e., the covered employee)
                    is required to notify the health care
                    plan administrator of such an
                    event.)
Authority to        Federal law stipulates that the         Allows the state of Texas to continue to       No provision.
continue state      following families automatically        operate its CSE program for automatic
program for         qualify for CSE services: families      monitoring and enforcement of court orders
monitoring and      receiving TANF benefits (Title          on behalf of a nonwelfare families without
enforcement of      IV-A), foster care payments (Title      applying for a federal waiver. Currently the
child support       IV-E), Medicaid coverage (Title         state of Texas does not require these
orders              XIX), or food stamps (if                families to apply for CSE services. [Section
                    cooperation is required by the          322]
                    state). Other families must apply
                    for CSE services.
Technical           P.L. 108-447, the Consolidated          Makes technical changes to the                 No provision.
amendment           Appropriations Act of 2005, added       Consolidated Appropriations Act of 2005
relating to         provisions related to the               with respect to references to Title IV-D
information         comparison of data from the             provisions related to information
comparisons and     Secretary of the Treasury with          comparisons and other disclosures. [Section
disclosure to       data in the National Directory of       323]
assist in federal   New Hires for the purpose of
debt collection     collecting nontax debt owed to the
                    federal government.

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