
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC654b]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                       CHAPTER 7--SOCIAL SECURITY
 
 SUBCHAPTER IV--GRANTS TO STATES FOR AID AND SERVICES TO NEEDY FAMILIES 
              WITH CHILDREN AND FOR CHILD-WELFARE SERVICES
 
          Part D--Child Support and Establishment of Paternity
 
Sec. 654b. 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 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 income 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 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 654a of this title.

               (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) of this section, the State 
    disbursement unit shall not be required to convert and maintain in 
    automated form records of payments kept pursuant 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 income, 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 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 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, Sec. 454B, as added Pub. L. 104-193, 
title III, Sec. 312(b), Aug. 22, 1996, 110 Stat. 2207; amended Pub. L. 
105-33, title V, Sec. 5549, Aug. 5, 1997, 111 Stat. 633.)

                       References in Text

    For effective date of this section, referred to in subsec. (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 distributed 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 withholding may be deemed to be the date of collection.''


                    Effective Date of 1997 Amendment

    Amendment by Pub. L. 105-33 effective as if included in the 
enactment of title III of the Personal Responsibility 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

    Section 312(d) of Pub. L. 104-193 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 payments.--Notwithstanding 
section 454B(b)(1) of the Social Security Act [subsec. (b)(1) of this 
section], as added by this section, any State which, as of the date of 
the enactment 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.

                  Section Referred to in Other Sections

    This section is referred to in sections 654, 654a, 655, 666 of this 
title; title 10 section 1408.
