Sec. 312. COLLECTION AND DISBURSEMENT OF SUPPORT PAYMENTS
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## SEC. 312 COLLECTION AND DISBURSEMENT OF SUPPORT PAYMENTS ###
(a)State Plan Requirement Section 454 (42 U.S.C. 654), as amended by sections 301(b) and 303(a) of this Act, is amended— ####
(1)by striking “and” at the end of paragraph (25); ####
(2)by striking the period at the end of paragraph
(26)and inserting “; and”; and ####
(3)by adding after paragraph
(26)the following new paragraph: > > #### “(27) > > provide that, on and after October 1, 1998, the State agency will— > > > ##### “(A) > > operate a State disbursement unit in accordance with section 454B; and > > > ##### “(B) > > have sufficient State staff (consisting of State employees) and (at State option) contractors reporting directly to the State agency to— > > > ###### “(i) > > monitor and enforce support collections through the unit in cases being enforced by the State pursuant to section 454(4) (including carrying out the automated data processing responsibilities described in section 454A(g)); and > > > ###### “(ii) > > take the actions described in section 466(c)(1) in appropriate cases.” > . ###
(b)Establishment of State Disbursement Unit Part D of title IV (42 U.S.C. 651–669), as amended by section 344(a)(2) of this Act, is amended by inserting after section 454A the following new section: > > ## “SEC. 454B COLLECTION AND DISBURSEMENT OF SUPPORT PAYMENTS > > > ### “(a) State Disbursement Unit > > > #### “(1) In general > > In order for a State to meet the requirements 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 454(4); 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 income of the noncustodial parent is subject to withholding pursuant to section 466(a)(8)(B). > > > #### “(2) Operation > > The State disbursement unit shall be operated— > > > ##### “(A) > > directly by the State agency (or 2 or more State agencies under a regional cooperative agreement), or (to the extent appropriate) 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 454A. > > > #### “(3) Linking of local disbursement units > > The State disbursement unit may be established 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 centralized system. In addition, employers shall be given 1 location to which income withholding is sent. > > > ### “(b) Required Procedures > > The State disbursement unit shall use automated procedures, electronic processes, and computer-driven technology to the maximum extent feasible, efficient, and economical, for the collection and disbursement of support payments, including procedures— > > > #### “(1) > > for receipt of payments from parents, employers, and other States, and for disbursements 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, except 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 pursuant to section 466(a)(8)(B)(iii) 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 457(a) within 2 business days after receipt from the employer or other source of periodic income, if sufficient information identifying the payee is provided. > > > #### “(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.” > . ###
(c)Use of Automated System Section 454A, as added by section 344(a)(2) and as amended by section 311 of this Act, is amended by adding at the end the following new subsection: > > ### “(g) Collection and Distribution of Support Payments > > > #### “(1) In general > > The State shall use the automated system required by this section, to the maximum extent feasible, to assist and facilitate the collection and disbursement of support payments through the State disbursement unit operated under section 454B, through the performance of functions, including, at a minimum— > > > ##### “(A) > > transmission of orders and notices to employers (and other debtors) for the withholding of income— > > > ###### “(i) > > within 2 business days after receipt of notice of, and the income source subject to, such withholding from a court, another State, an employer, the Federal Parent Locator Service, or another source recognized by the State; and > > > ###### “(ii) > > using uniform formats prescribed by the Secretary; > > > ##### “(B) > > ongoing monitoring to promptly identify failures to make timely payment of support; and > > > ##### “(C) > > automatic use of enforcement procedures (including procedures authorized pursuant to section 466(c)) if payments are not timely made. > > > #### “(2) Business day defined > > As used in paragraph (1), the term ‘**business day**’ means a day on which State offices are open for regular business.” > . ###
(d)Effective Dates **[**[42 U.S.C. 654b note](/us/usc/t42/s654b)**]** ####
(1)In general Except as provided in paragraph (2), the amendments made by this section shall become effective on October 1, 1998. ####
(2)Limited exception to unit handling payments Notwithstanding section 454B(b)(1) of the Social Security Act, as added by this section, any State which, as of the date of the enactment of this Act, 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.
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- 42 USC 651–669
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