42 U.S.C. § 654b — Collection and disbursement of support

Page 2310 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 654b 106–113, div. B, § 1000(a)(4) [title VIII, § 805(a)(1)], Nov. 29, 1999, 113 Stat. 1535, 1501A–285; Pub. L. 113–183, title III, § 306(a), Sept. 29, 2014, 128 Stat. 1949.) Editorial Notes REFERENCES IN TEXT The Internal Revenue Code of 1986, referred to in sub- secs. (d)(4) and (f), is classified generally to Title 26, In- ternal Revenue Code. AMENDMENTS 2014—Subsec. (g)(1). Pub. L. 113–183, § 306(a)(1), struck out ‘‘, to the maximum extent feasible,’’ after ‘‘this section’’ in introductory provisions. Subsec. (g)(1)(A)(iii). Pub. L. 113–183, § 306(a)(2), added cl. (iii). 1999—Subsec. (f)(5). Pub. L. 106–113 added par. (5). 1997—Subsec. (e)(4)(D). Pub. L. 105–34 substituted ‘‘the birth date and, beginning not later than October 1, 1999, the social security number, of any child’’ for ‘‘the birth date of any child’’. 1996—Subsecs. (e), (f). Pub. L. 104–193, § 311, added sub- secs. (e) and (f). Subsec. (g). Pub. L. 104–193, § 312(c), added subsec. (g). Subsec. (h). Pub. L. 104–193, § 325(b), added subsec. (h). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2014 AMENDMENT Pub. L. 113–183, title III, § 306(b), Sept. 29, 2014, 128 Stat. 1949, provided that: ‘‘The amendments made by subsection (a) [amending this section] shall take effect on October 1, 2015.’’ EFFECTIVE DATE OF 1997 AMENDMENT Amendment by Pub. L. 105–34 effective Oct. 1, 1998, see section 1090(a)(4) of Pub. L. 105–34, set out as a note under section 653 of this title. EFFECTIVE DATE OF 1996 AMENDMENT Amendment by section 312(c) of Pub. L. 104–193 effec- tive Oct. 1, 1998, with limited exception for States which, as of Aug. 22, 1996, were processing the receipt of child support payments through local courts, see sec- tion 312(d) of Pub. L. 104–193, set out as an Effective Date note under section 654b of this title. EFFECTIVE DATE For provisions relating to effective date of title III of Pub. L. 104–193, see section 395(a)–(c) of Pub. L. 104–193, set out as an Effective Date of 1996 Amendment note under section 654 of this title. REGULATIONS Pub. L. 104–193, title III, § 344(a)(3), Aug. 22, 1996, 110 Stat. 2236, provided that: ‘‘The Secretary of Health and Human Services shall prescribe final regulations for implementation of section 454A of the Social Security Act [42 U.S.C. 654a] not later than 2 years after the date of the enactment of this Act [Aug. 22, 1996].’’ § 654b. Collection and disbursement of support payments (a) State disbursement unit (1) In general In order for a State to meet the require- ments of this section, the State agency must establish and operate a unit (which shall be known as the ‘‘State disbursement unit’’) for the collection and disbursement of payments under support orders— (A) in all cases being enforced by the State pursuant to section 654(4) of this title; and (B) in all cases not being enforced by the State under this part in which the support order is initially issued in the State on or after January 1, 1994, and in which the in- come of the noncustodial parent is subject to withholding pursuant to section 666(a)(8)(B) of this title. (2) Operation The State disbursement unit shall be oper- ated— (A) directly by the State agency (or 2 or more State agencies under a regional coop- erative agreement), or (to the extent appro- priate) by a contractor responsible directly to the State agency; and (B) except in cases described in paragraph (1)(B), in coordination with the automated system established by the State pursuant to section 654a of this title. (3) Linking of local disbursement units The State disbursement unit may be estab- lished by linking local disbursement units through an automated information network, subject to this section, if the Secretary agrees that the system will not cost more nor take more time to establish or operate than a cen- tralized system. In addition, employers shall be given 1 location to which income with- holding is sent. (b) Required procedures The State disbursement unit shall use auto- mated procedures, electronic processes, and computer-driven technology to the maximum extent feasible, efficient, and economical, for the collection and disbursement of support pay- ments, including procedures— (1) for receipt of payments from parents, em- ployers, and other States, and for disburse- ments to custodial parents and other obligees, the State agency, and the agencies of other States; (2) for accurate identification of payments; (3) to ensure prompt disbursement of the custodial parent’s share of any payment; and (4) to furnish to any parent, upon request, timely information on the current status of support payments under an order requiring payments to be made by or to the parent, ex- cept that in cases described in subsection (a)(1)(B), the State disbursement unit shall not be required to convert and maintain in automated form records of payments kept pur- suant to section 666(a)(8)(B)(iii) of this title before the effective date of this section. (c) Timing of disbursements (1) In general Except as provided in paragraph (2), the State disbursement unit shall distribute all amounts payable under section 657(a) of this title within 2 business days after receipt from the employer or other source of periodic in- come, if sufficient information identifying the payee is provided. The date of collection for amounts collected and distributed under this part is the date of receipt by the State dis- bursement unit, except that if current support is withheld by an employer in the month when due and is received by the State disbursement Page 2311 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 655 1 So in original. The ‘‘; and’’ probably should be a comma. unit in a month other than the month when due, the date of withholding may be deemed to be the date of collection. (2) Permissive retention of arrearages The State disbursement unit may delay the distribution of collections toward arrearages until the resolution of any timely appeal with respect to such arrearages. (d) ‘‘Business day’’ defined As used in this section, the term ‘‘business day’’ means a day on which State offices are open for regular business. (Aug. 14, 1935, ch. 531, title IV, § 454B, as added Pub. L. 104–193, title III, § 312(b), Aug. 22, 1996, 110 Stat. 2207; amended Pub. L. 105–33, title V, § 5549, Aug. 5, 1997, 111 Stat. 633.) Editorial Notes REFERENCES IN TEXT For effective date of this section, referred to in sub- sec. (b)(4), see Effective Date note below. AMENDMENTS 1997—Subsec. (c)(1). Pub. L. 105–33 inserted at end ‘‘The date of collection for amounts collected and dis- tributed under this part is the date of receipt by the State disbursement unit, except that if current support is withheld by an employer in the month when due and is received by the State disbursement unit in a month other than the month when due, the date of with- holding may be deemed to be the date of collection.’’ Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1997 AMENDMENT Amendment by Pub. L. 105–33 effective as if included in the enactment of title III of the Personal Responsi- bility and Work Opportunity Reconciliation Act of 1996, Pub. L. 104–193, see section 5557 of Pub. L. 105–33, set out as a note under section 608 of this title. EFFECTIVE DATE Pub. L. 104–193, title III, § 312(d), Aug. 22, 1996, 110 Stat. 2209, provided that: ‘‘(1) IN GENERAL.—Except as provided in paragraph (2), the amendments made by this section [enacting this section and amending sections 654 and 654a of this title] shall become effective on October 1, 1998. ‘‘(2) LIMITED EXCEPTION TO UNIT HANDLING PAY- MENTS.—Notwithstanding section 454B(b)(1) of the So- cial Security Act [42 U.S.C. 654b(b)(1)], as added by this section, any State which, as of the date of the enact- ment of this Act [Aug. 22, 1996], processes the receipt of child support payments through local courts may, at the option of the State, continue to process through September 30, 1999, such payments through such courts as processed such payments on or before such date of enactment.’’ For provisions relating to effective date of title III of Pub. L. 104–193, see section 395(a)–(c) of Pub. L. 104–193, set out as an Effective Date of 1996 Amendment note under section 654 of this title. § 655. Payments to States (a) Amounts payable each quarter (1) From the sums appropriated therefor, the Secretary shall pay to each State for each quar- ter an amount— (A) equal to the percent specified in para- graph (2) of the total amounts expended by such State during such quarter for the oper- ation of the plan approved under section 654 of this title, (B) equal to the percent specified in para- graph (3) of the sums expended during such quarter that are attributable to the planning, design, development, installation or enhance- ment of an automatic data processing and in- formation retrieval system (including in such sums the full cost of the hardware components of such system); and 1 (C) equal to 66 percent of so much of the sums expended during such quarter as are at- tributable to laboratory costs incurred in de- termining paternity, and (D) equal to 66 percent of the sums expended by the State during the quarter for an alter- native statewide system for which a waiver has been granted under section 652(d)(3) of this title, but only to the extent that the total of the sums so expended by the State on or after July 16, 1998, does not exceed the least total cost estimate submitted by the State pursuant to section 652(d)(3)(C) of this title in the re- quest for the waiver; except that no amount shall be paid to any State on account of amounts expended from amounts paid to the State under section 658a of this title or to carry out an agreement which it has entered into pursuant to section 663 of this title. In determining the total amounts ex- pended by any State during a quarter, for pur- poses of this subsection, there shall be excluded an amount equal to the total of any fees col- lected or other income resulting from services provided under the plan approved under this part. (2) The percent applicable to quarters in a fis- cal year for purposes of paragraph (1)(A) is— (A) 70 percent for fiscal years 1984, 1985, 1986, and 1987, (B) 68 percent for fiscal years 1988 and 1989, and (C) 66 percent for fiscal year 1990 and each fiscal year thereafter. (3)(A) The Secretary shall pay to each State, for each quarter in fiscal years 1996 and 1997, 90 percent of so much of the State expenditures de- scribed in paragraph (1)(B) as the Secretary finds are for a system meeting the requirements specified in section 654(16) of this title (as in ef- fect on September 30, 1995) but limited to the amount approved for States in the advance plan- ning documents of such States submitted on or before September 30, 1995. (B)(i) The Secretary shall pay to each State or system described in clause (iii), for each quarter in fiscal years 1996 through 2001, the percentage specified in clause (ii) of so much of the State or system expenditures described in paragraph (1)(B) as the Secretary finds are for a system meeting the requirements of sections 654(16) and 654a of this title. (ii) The percentage specified in this clause is 80 percent. (iii) For purposes of clause (i), a system de- scribed in this clause is a system that has been approved by the Secretary to receive enhanced funding pursuant to the Family Support Act of