U.S. Code » Title 42 » Chapter CHAPTER 7— SOCIAL SECURITY › Subchapter SUBCHAPTER IV— GRANTS TO STATES FOR AID AND SERVICES TO NEEDY FAMILIES WITH CHILDREN AND FOR CHILD-WELFARE SERVICES › Part Part D— Child Support and Establishment of Paternity

42 U.S.C. § 654b

Collection and disbursement of support payments

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(a) State disbursement unit(1) In generalIn 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) OperationThe 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 proceduresThe 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 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, § 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 NotesReferences 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.”

Statutory Notes and Related SubsidiariesEffective 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

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 payments.—Notwithstanding section 454B(b)(1) of the Social Security Act [42 U.S.C. 654b(b)(1)], 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.

Notes of Decisions
Cited in 11 cases, 2001–2008 · leading case: Ex Parte Alabama Dept. of Human Resources, 999 So. 2d 891 (Ala. 2008).
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Ex Parte Alabama Dept. of Human Resources, 999 So. 2d 891 (Ala. 2008). · cites it 3× “In accordance with the Congressional directives contained in 42 U.S.C. § 654b (a)(1), § 30-3-195 , Ala.”
Hughlett v. Romer-Sensky, 497 F.3d 557 (6th Cir. 2006). · cites it 2× “§ 657 (a)(3) and 42 U.S.C. § 654b(c)(l), when read together, confer individual *563 rights.”
O'donnell v. Abbott, 393 F. Supp. 2d 508 (W.D. Tex. 2005). · cites it 3× “, in Texas, the Office of the Attorney General) and: The State disbursement unit shall use automated procedures, and computer-driven technology to the maximum extent feasible, efficient, and economical, for the collection and disbursement of support payments, including…”
O'Donnell v. Abbott, 481 F.3d 280 (5th Cir. 2007). · cites it 2× “42 U.S.C. § 654b(a)(l) (1998). PRWORA makes clear that the “State disbursement unit” (“SDU”) must be operated “directly by [a] state agency.”
Hughlett v. Romer-Sensky, 98 F. App'x 360 (6th Cir. 2004). “In response to defendants’ motion to dismiss or for summary judgment, plaintiffs specifically identified 42 U.S.C. § 654b and 45 C.F.R. § 303.32 (b), which govern the timing of distributions of collected child support payments, as the source of the rights they claim are…”
Teresa Arnold v. Jim Martin, 449 F.3d 1338 (11th Cir. 2006). “42 U.S.C. § 654b(a). The State of Georgia accepted these conditions and began operation of the TANF block grant in January 1997.”
Michael Wallace Sherrod v. Tennessee Dep't of Human Serv. (Tenn. Ct. App. 2008). · cites it 4× “§ 654b, shall be deemed to require that the support be sent to the central collection and disbursement unit, any order of the court notwithstanding.”
Jacqueline Patterson v. Richard French (Tenn. Ct. App. 2001). · cites it 3× “The State argued that Father’s arrearage payments were required to be paid through the State disbursement unit established under 42 U.S.C. § 654b and Tennessee Code Annotated § 36-5-116.”
Hughlett v. Romer-Sensky (6th Cir. 2006). · cites it 2× “The provisions state, in relevant part: a) In general Subject to subsections (d) and (e) of this section, an amount collected on behalf of a family as support by a State pursuant to a plan approved under this part shall be distributed as follows: *** (3) Families that never…”
State of Tennessee, ex rel, Ashley Mitchell v. Patrick D. Armstrong (Tenn. Ct. App. 2004). “However, section 36-5-116 of the Tennessee Code Annotated provides that “[a]ll order[s] in Title IV-D support cases, and all orders for income assignments which have directed support be paid to the clerk of any court, and which are subject to the provisions of 42 U.S.C. § 654b,…”
In Re Hurt, 389 B.R. 551 (Bankr. W.D. Tenn. 2008). “The State of Tennessee, pursuant to the requirements of 42 U.S.C. § 654b involving Title IV-D social security benefits, filed a claim for $2,000.”
— 42 U.S.C. § 654b(a) — 1 case
Teresa Arnold v. Jim Martin, 449 F.3d 1338 (11th Cir. 2006). “42 U.S.C. § 654b(a). The State of Georgia accepted these conditions and began operation of the TANF block grant in January 1997.”
— 42 U.S.C. § 654b(a)(1) — 1 case
Michael Wallace Sherrod v. Tennessee Dep't of Human Serv. (Tenn. Ct. App. 2008). “§ 654b, shall be deemed to require that the support be sent to the central collection and disbursement unit, any order of the court notwithstanding.”
— 42 U.S.C. § 654b(a)(2)(A) — 1 case
O'donnell v. Abbott, 393 F. Supp. 2d 508 (W.D. Tex. 2005). “, in Texas, the Office of the Attorney General) and: The State disbursement unit shall use automated procedures, and computer-driven technology to the maximum extent feasible, efficient, and economical, for the collection and disbursement of support payments, including…”
— 42 U.S.C. § 654b(a)(l) — 1 case
O'Donnell v. Abbott, 481 F.3d 280 (5th Cir. 2007). “42 U.S.C. § 654b(a)(l) (1998). PRWORA makes clear that the “State disbursement unit” (“SDU”) must be operated “directly by [a] state agency.”
— 42 U.S.C. § 654b(a)(l)(A)(B) — 1 case
O'donnell v. Abbott, 393 F. Supp. 2d 508 (W.D. Tex. 2005). “, in Texas, the Office of the Attorney General) and: The State disbursement unit shall use automated procedures, and computer-driven technology to the maximum extent feasible, efficient, and economical, for the collection and disbursement of support payments, including…”
— 42 U.S.C. § 654b(b)(l) — 2 cases
O'donnell v. Abbott, 393 F. Supp. 2d 508 (W.D. Tex. 2005). “, in Texas, the Office of the Attorney General) and: The State disbursement unit shall use automated procedures, and computer-driven technology to the maximum extent feasible, efficient, and economical, for the collection and disbursement of support payments, including…”
O'Donnell v. Abbott, 481 F.3d 280 (5th Cir. 2007). “42 U.S.C. § 654b(a)(l) (1998). PRWORA makes clear that the “State disbursement unit” (“SDU”) must be operated “directly by [a] state agency.”
— 42 U.S.C. § 654b(c)(1) — 1 case
Hughlett v. Romer-Sensky (6th Cir. 2006). “The provisions state, in relevant part: a) In general Subject to subsections (d) and (e) of this section, an amount collected on behalf of a family as support by a State pursuant to a plan approved under this part shall be distributed as follows: *** (3) Families that never…”
— 42 U.S.C. § 654b(c)(l) — 1 case
Hughlett v. Romer-Sensky, 497 F.3d 557 (6th Cir. 2006). “§ 657 (a)(3) and 42 U.S.C. § 654b(c)(l), when read together, confer individual *563 rights.”
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