Sec. 3. Increasing Child Support Payments to Families

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Section 453A of the Social Security Act ( 42 U.S.C. 653a ) is amended— in subsection (a)(1)(A), by striking by employers on each newly hired employee ; in subsection (b)— in the subsection heading, by striking and inserting Employer ; Reported in paragraph (1)— in subparagraph (A)— by striking Except as provided and inserting the following: Except as provided ; by striking identifying number and inserting employer identification number ; by inserting (in this section referred to as the after employer identification number ) under ; and section 6109 of the Internal Revenue Code of 1986 by adding at the end the following new clause: Except as provided in subparagraphs

(B)and (C), if a service-recipient is required to make a return in accordance with section 6041A(a) of the Internal Revenue Code of 1986 with respect to a nonemployee, such service-recipient shall furnish to the Directory of New Hires of the State in which such nonemployee works, a report that contains the name, address, and social security number of or identifying number assigned under section 6109 of the Internal Revenue Code (in this section referred to as the identifying number ) to such nonemployee, the date services for remuneration were first performed by such nonemployee, and the name, address, and employer identification number of the service-recipient. ; in subparagraph (B)— in the subparagraph heading, by striking and inserting employers ; reporting by striking An employer and inserting the following: An employer that has employees ; by inserting

(i)after subparagraph

(A)each place it appears; by striking the second sentence; and by adding at the end the following: A service-recipient required to make returns in accordance with section 6041A(a) of the Internal Revenue Code with respect to nonemployees located in 2 or more States and that transmits reports magnetically or electronically may comply with subparagraph (A)(ii) by designating 1 State in which any such nonemployee is located to which the service-recipient will transmit the report described in subparagraph (A)(ii), and transmitting such report to such State. Any employer or service-recipient that transmits reports pursuant to this subparagraph shall notify the Secretary in writing as to which State such employer or service-recipient designates for the purpose of sending reports. ; and in subparagraph (C)— in the subparagraph heading, by striking ; and employers by striking report and inserting reports ; and in paragraph (2)— in the matter that precedes subparagraph (A), by striking with respect to an employee ; in subparagraph (A)— by inserting with respect to an employee, before not later than 20 days ; and by striking or after the semicolon; by redesignating subparagraph

(B)as subparagraph (C); by inserting after subparagraph

(A)the following new subparagraph: with respect to a nonemployee, not later than 20 days after the earlier of— first making payments as a consequence of which a return in accordance with section 6041A(a) of the Internal Revenue Code of 1986 is required to be made; or entering into a contract providing for such payments; or ; and in subparagraph (C), as redesignated by clause (iii), by striking in the case of an employer transmitting reports and inserting in the case of reports transmitted ; in subsection (c), by inserting or service-recipient after at the option of the employer ; in subsection (d)— in the heading, by inserting after and Service-Recipients ; Employers in paragraph (1), by inserting or nonemployee after employee ; and in paragraph (2)— by inserting or service-recipient after employer ; and by inserting or nonemployee, respectively, after employee ; in subsection (e)— in the subsection heading, by striking ; and Employer by striking from an employer ; in subsection (f)— in paragraph (1); by inserting and identifying numbers after social security numbers each place it appears; and by striking by employers before pursuant to subsection

(b); and in paragraph (2)— by inserting or identifying number after social security number each place it appears; by striking employee and inserting individual ; and by striking and the name and address of, and identifying number assigned under section 6109 of the Internal Revenue Act of 1986 to, the employer and inserting and the name, address, and employer identification number of the employer or service-recipient ; in subsection (g)(2)(A), by inserting or nonemployee after newly hired employee ; and in subsection (h), by striking by employers each place it appears. Subsection

(l)of section 452 of the Social Security Act ( 42 U.S.C. 652 ) is amended to read as follows: The Secretary, through the Federal Parent Locator Service, is authorized— to assist State agencies operating programs under this part and financial institutions (as defined in section 469A(d)(1)) in reaching agreements regarding the receipt from such institutions, and the transfer to the State agencies, of information that may be provided pursuant to section 466(a)(17)(A)(i) or 469A(a); to perform data matches comparing information from such State agencies and financial institutions entering into such agreements with respect to individuals owing past due support; and upon State request, using formats prescribed by the Secretary, to send a notice of lien on assets, held by such financial institutions, of individuals identified through such data matches who owe past-due support. A financial institution shall not be liable under any Federal law to any person— for encumbering any assets held by such financial institution in response to a notice of lien sent by the Secretary as provided for in paragraph (1)(C); or for any other action taken in good faith to comply with paragraph (1). For purposes of section 1113(d) of the Right to Financial Privacy Act of 1978, a disclosure pursuant to this subsection shall be considered a disclosure pursuant to a Federal statute. . Section 466(a)(4)(A) of the Social Security Act ( 42 U.S.C. 666(a)(4)(A) ) is amended by inserting , including bank accounts, after personal property . Section 466(a)(4)(B) of such Act ( 42 U.S.C. 666(a)(4)(B) ) is amended by striking , when the State agency, party, or other entity and all that follows and inserting a period. Section 466(a)(17)(A) of such Act ( 42 U.S.C. 666(a)(17)(A) ) is amended— in clause (i), by striking and after the semicolon; in clause (ii), by striking the period at the end and inserting ; and ; and by adding at the end the following new clause: in response to a notice of lien sent by the Secretary, to encumber assets held by such institution on behalf of any noncustodial parent who is subject to a child support lien pursuant to paragraph (4). . Section 466(a)(17)(A)(ii) of such Act ( 42 U.S.C. 666(a)(17)(A)(ii) ), as amended by subparagraph (C)(ii), is amended by inserting in such format and containing such information as the Secretary may require, after notice of lien or levy, . Paragraph

(3)of section 453(k) of such Act ( 42 U.S.C. 653(k)(3) ) is amended— in the heading, by inserting after and enforcement services ; information by inserting or enforcement services after that receives information ; by striking or section 452(m) and inserting or subsection

(l)or

(m)of sections 452 ; and by striking in furnishing the information and inserting in furnishing such information or enforcement services . Section 469A(a) of such Act ( 42 U.S.C. 669a(a) ) is amended by inserting section 452(l) or before section 466(a)(17)(A) . Section 466(a)(17)(A)(i) of such Act ( 42 U.S.C. 666(a)(17)(A)(i) ) is amended by striking in the case of financial institutions doing business in two or more States . Not later than December 30, 2020, the Comptroller General of the United States shall issue a report on State rules and practices in relation to income withholding for nonemployees and how they are similar to or different from those applicable to employees under the Consumer Credit Protection Act ( 15 U.S.C. 1601 et seq.). Subject to paragraph (2), the amendments made by this section take effect on January 1, 2021. In the case of a State plan under part D of title IV of the Social Security Act ( 42 U.S.C. 651 et seq.) which the Secretary of Health and Human Services determines requires State legislation in order for the respective plan to meet the additional requirements imposed by the amendments made by this section, the respective plan shall not be regarded as failing to comply with the requirements of such part solely on the basis of its failure to meet such additional requirement before the first day of the first calendar quarter beginning after the close of the first regular session of the State legislature that begins after the date of enactment of this section. For purposes of the previous sentence, in the case of a State that has a 2-year legislative session, each year of the session shall be considered to be a separate regular session of the State legislature.

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Sec. 3

Increasing Child Support Payments to Families

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