Title 42, The Public Health and WelfareRelease 119-102
§654b Collection and Disbursement of Support Payments
Title 42 › 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 › § 654b
Full Legal Text
Title 42, §654b
The Public Health and Welfare, Source: USLM XML via OLRC
(a)(1)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)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)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)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 666(a)(8)(B)(iii) of this title before the effective date of this section.
(c)(1)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)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)As used in this section, the term “business day” means a day on which State offices are open for regular business.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
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.”
Statutory Notes and Related Subsidiaries
Effective Date
of 1997 AmendmentAmendment 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 section 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.
Reference
Citations & Metadata
Citation
42 U.S.C. § 654b
Title 42, The Public Health and Welfare
Last Updated
Aug 21, 2026
Release point: 119-102