Bill 532

                    Current Status

Bill Number:                    532
Ratification Number:            132
Act Number:                     71
Type of Legislation:            General Bill GB
Introducing Body:               Senate
Introduced Date:                19970312
Primary Sponsor:                Martin
All Sponsors:                   Martin, Wilson, J. Verne Smith,
                                Moore, Short, Washington and Alexander
                                
Drafted Document Number:        psd\7150ac.97
Companion Bill Number:          3651
Date Bill Passed both Bodies:   19970521
Date of Last Amendment:         19970430
Governor's Action:              S
Date of Governor's Action:      19970610
Subject:                        Child support enforcement,
                                paternity establishment; documents to
                                have social security numbers; Minors,
                                Domestic Relation

Body    Date      Action Description                       Com     Leg Involved
______  ________  _______________________________________  _______ ____________

------  19970630  Act No. A71
------  19970610  Signed by Governor
------  19970604  Ratified R132
House   19970521  Read third time, enrolled for
                  ratification
House   19970520  Read second time
House   19970514  Recalled from Committee                  25 HJ
House   19970501  Introduced, read first time,             25 HJ
                  referred to Committee
Senate  19970430  Amended, read third time,
                  sent to House
Senate  19970429  Read second time, ordered to
                  third reading with notice of
                  general amendments
Senate  19970429  Amended
Senate  19970429  Committee amendment adopted
Senate  19970424  Committee report: Favorable with         11 SJ
                  amendment
Senate  19970312  Introduced, read first time,             11 SJ
                  referred to Committee

(A71, R132, S532)

AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTIONS 20-3-235, 20-7-853, AND 20-7-854 AND BY AMENDING SECTIONS 20-1-220, 20-1-350, 20-7-949, 20-7-957, 44-7-77, AS AMENDED, 44-63-60, AS AMENDED, 44-63-75, 44-63-80, AS AMENDED, 44-63-84, 44-63-86, AND 44-63-110, AS AMENDED, ALL RESPECTIVELY RELATING TO DIVORCE DECREES, ADMINISTRATIVE AND JUDICIAL ORDERS, MARRIAGE LICENSES, OCCUPATIONAL AND PROFESSIONAL LICENSES, BUSINESS LICENSES, DRIVERS' LICENSES, HUNTING, FISHING, OR TRAPPING LICENSES, PATERNITY ORDERS AND ACKNOWLEDGMENTS, BIRTH AND DEATH CERTIFICATES, SO AS TO REQUIRE SOCIAL SECURITY NUMBERS ON OR IN THESE DOCUMENTS AND TO EXEMPT THE DEPARTMENT OF SOCIAL SERVICES FROM PAYING A FEE FOR OBTAINING COPIES OF THESE DOCUMENTS IF THE DOCUMENT IS NEEDED FOR THE PURPOSE OF ESTABLISHING PATERNITY OR ESTABLISHING, MODIFYING, OR ENFORCING CHILD SUPPORT; TO AMEND SUBARTICLE 6, ARTICLE 9, CHAPTER 7, TITLE 20, RELATING TO INCOME WITHHOLDING FOR CHILD SUPPORT BY ADDING PART IA, SO AS TO ESTABLISH PROCEDURES FOR CREATING, PERFECTING, AND COLLECTING A LIEN FOR PAST-DUE CHILD SUPPORT IN AN AMOUNT EQUAL TO OR GREATER THAN ONE THOUSAND DOLLARS; TO ADD SECTION 20-7-92 SO AS TO REQUIRE THE COURT TO ORDER TEMPORARY PAYMENT OF CHILD SUPPORT PENDING A JUDICIAL DETERMINATION OF PATERNITY UNDER CERTAIN CONDITIONS; TO ADD SECTION 20-7-855 SO AS TO PROVIDE THAT COPIES OF BILLS FOR TESTING FOR PARENTAGE AND PRENATAL AND POSTNATAL HEALTH CARE ARE PRIMA FACIE EVIDENCE IN PATERNITY ACTIONS FOR EXPENSES INCURRED; TO ADD SECTION 20-7-958 SO AS TO PROVIDE THAT A VERIFIED VOLUNTARY ACKNOWLEDGMENT OF PATERNITY CREATES A LEGAL FINDING OF PATERNITY; TO AMEND SECTION 20-7-956, RELATING TO ADMISSIBILITY OF EVIDENCE IN PATERNITY ACTIONS, SO AS TO PROVIDE THAT A VERIFIED VOLUNTARY ACKNOWLEDGMENT OF PATERNITY CREATES A CONCLUSIVE PRESUMPTION OF PATERNITY; TO AMEND SECTION 44-63-163, RELATING TO BIRTH CERTIFICATES SUBSEQUENT TO A PATERNITY DETERMINATION, SO AS TO PROVIDE THAT THE CHANGE ALSO MAY BE MADE UPON A DETERMINATION MADE BY AN ADMINISTRATIVE AGENCY; TO ADD SECTIONS 20-7-1124, 20-7-1126, 20-7-1127, 20-7-1128, 20-7-1129, 20-7-1153, 20-7-1155; TO AMEND SECTIONS 20-7-965, 20-7-1010, 20-7-1040, 20-7-1100, 20-7-1125, 20-7-1152, AND 20-7-1154, ALL AS AMENDED, ALL RELATING TO THE UNIFORM INTERSTATE FAMILY SUPPORT ACT, SO AS TO CONFORM THIS ACT TO THE ACT AS REVISED BY THE NATIONAL CONFERENCE OF COMMISSIONERS ON UNIFORM STATE LAWS; TO AMEND SECTION 20-7-1315, AS AMENDED, RELATING TO INCOME WITHHOLDING, SO AS TO REVISE DEFINITIONS, TO REVISE CONDITIONS UNDER WHICH INCOME WITHHOLDING IS IN EFFECT, AND TO PROVIDE FOR THE TRANSMITTAL OF INFORMATION TO THE DEPARTMENT; TO ADD SECTION 20-7-9570; TO AMEND SECTIONS 20-7-9505, AS AMENDED, AND 20-7-9510, RELATING TO THE ADMINISTRATIVE PROCESS FOR ESTABLISHING AND ENFORCING PATERNITY AND CHILD SUPPORT, SO AS TO AUTHORIZE THE DEPARTMENT OF SOCIAL SERVICES TO ADMINISTRATIVELY CHANGE A GOVERNMENTAL PAYEE WHEN THE CHILD SUPPORT CASE IS SUBJECT TO ASSIGNMENT OR REQUIRED TO BE PAID THROUGH A GOVERNMENTAL ENTITY AND TO REVISE DEFINITIONS; TO ADD SECTION 20-7-856 SO AS TO AUTHORIZE THE DEPARTMENT OF SOCIAL SERVICES TO REMIT TO THE FEDERAL GOVERNMENT ITS SHARE OF FINES COLLECTED FOR FAILING TO COMPLY WITH SUBPOENAS AND CERTAIN CHILD SUPPORT ENFORCEMENT REQUIREMENTS; TO ADD SECTION 20-7-9575 SO AS TO AUTHORIZE THE DEPARTMENT OF SOCIAL SERVICES TO ISSUE ADMINISTRATIVE SUBPOENAS; TO AMEND SECTION 20-7-420, AS AMENDED, RELATING TO JURISDICTION OF THE FAMILY COURT, SO AS TO AUTHORIZE THE COURT TO ENFORCE ADMINISTRATIVE SUBPOENAS ISSUED BY THE DEPARTMENT; TO AMEND SECTION 27-23-10, RELATING TO VOIDING CONVEYANCES MADE TO DEFRAUD CREDITORS, SO AS TO PROVIDE CONDITIONS UNDER WHICH A REBUTTABLE PRESUMPTION IS CREATED THAT A CHILD SUPPORT DEBTOR INTENDED TO TRANSFER INCOME OR PROPERTY TO AVOID PAYMENT TO A CHILD SUPPORT CREDITOR; TO ADD SECTIONS 43-5-595, 43-5-596, AND 43-5-597; AND TO AMEND SECTION 41-29-170 AND SECTION 43-5-590, BOTH AS AMENDED, RELATING TO INFORMATION TO BE PROVIDED BY THE SOUTH CAROLINA EMPLOYMENT SECURITY COMMISSION TO THE DEPARTMENT OF SOCIAL SERVICES AND RELATING TO THE DEPARTMENT'S DUTIES RELATIVE TO THE STATE CHILD SUPPORT PLAN, SO AS TO CLARIFY EMPLOYERS WHO MUST PROVIDE INFORMATION TO THE DEPARTMENT FOR THE PURPOSE OF THE ESTABLISHMENT OF PATERNITY OR THE ESTABLISHMENT, NOTIFICATION, OR ENFORCEMENT OF A SUPPORT OBLIGATION, TO REQUIRE UTILITY COMPANIES AND FINANCIAL INSTITUTIONS TO PROVIDE INFORMATION ON ITS CUSTOMERS FOR SUCH PURPOSES, TO PROVIDE IMMUNITY FROM LIABILITY FOR DISCLOSURE OF SUCH INFORMATION AND TO SPECIFY INFORMATION THE EMPLOYMENT SECURITY COMMISSION MUST PROVIDE; TO ADD SECTION 43-5-598 SO AS TO REQUIRE EMPLOYEES TO REPORT INFORMATION TO THE DEPARTMENT ON EMPLOYEES WHO ARE NEWLY HIRED; TO AMEND SECTION 43-5-610, RELATING TO THE CENTRAL REGISTRY OF RECORDS MAINTAINED BY THE DEPARTMENT OF SOCIAL SERVICES, SO AS TO REVISE THE INFORMATION TO BE MAINTAINED AND TO WHOM INFORMATION MAY BE RELEASED; AND TO REPEAL SECTION 43-5-222 RELATING TO THE PORTION OF CHILD SUPPORT PAYMENTS TO BE PAID TO WELFARE RECIPIENTS.

Whereas, it is the sense of Congress that all states shall have in effect certain laws relative to the enforcement of child support in order to remain eligible for federal funding under Title IV-D of the Social Security Act. Therefore, this act amends the Code of Laws of South Carolina, 1976, to, among other things, require the collection and use of social security numbers on certain state-issued documents and applications; to provide authority for the imposition of administrative liens in child support cases; to enhance the information requirements of the parties to a paternity or child support action; to enhance procedures establishing paternity; to conform the state's Uniform Interstate Family Support Act (UIFSA) to changes made by the National Conference of Commissioners on Uniform State Laws; to enhance income withholding; to provide authority for the Department of Social Services to administratively change the payee in Title IV-D child support cases; to provide authority for the issuance and enforcement of administrative subpoenas; to enhance the ability to void conveyances fraudulently conducted for purposes of avoiding payment of a child support obligation; to eliminate the payment of a child support disregard check in accordance with the elimination of federal financial participation in the same; to require employers, state and local agencies, financial institutions, and utility companies to provide certain information necessary for the establishment or enforcement of child support obligations; to establish a mandatory new hire reporting program; and to establish a state registry of child support cases. Now, therefore,

Be it enacted by the General Assembly of the State of South Carolina:

Social security numbers required

SECTION 1. The 1976 Code is amended by adding:

"Section 20-3-235. A decree of divorce shall set forth the social security numbers of the parties in the divorce. Filing the required form with the Department of Health and Environmental Control complies with the requirements of this section."

Social security numbers required

SECTION 2. The 1976 Code is amended by adding:

"Section 20-7-853. An administrative or judicial order which includes a determination of paternity or a provision for child support shall set forth the social security numbers of both parents."

Information required in child support and paternity actions

SECTION 3. The 1976 Code is amended by adding:

"Section 20-7-854. (A) An obligor and an obligee in a child support or paternity action, whether judicial or administrative, shall provide the following information to the tribunal:

(1) residence address;

(2) mailing address;

(3) telephone number;

(4) social security number;

(5) driver's license number; and

(6) name, address, and telephone number of employer.

The parties shall notify the tribunal of any changes to the above-referenced information within ten days of the effective date of the change. In subsequent support actions between the obligor and the obligee or their assignees, upon sufficient showing that diligent effort has been made to ascertain the location of the party, delivery by first-class mail of written notice to the obligor and the obligee at the residential or employer address most recently filed with the tribunal constitutes service of process.

(B) 'Tribunal' is defined for purposes of this section as the family court or the Department of Social Services, Child Support Enforcement Division or its designee."

Social security numbers required

SECTION 4. Section 20-1-220 of the 1976 Code is amended to read:

"Section 20-1-220. No marriage license may be issued unless a written application shall have been filed with the probate judge, or in Darlington and Georgetown Counties the clerk of court who issues the license, at least twenty-four hours before its issuance. The application must be signed by both of the contracting parties and shall contain the same information as required for the issuing of the license including the social security numbers of the contracting parties. The license issued, in addition to other things required, shall show the hour and date of the filing of the application and the hour and date of the issuance of the license. The application must be kept by the probate judge or clerk of court as a permanent record in his office. A probate judge or clerk of court issuing a license contrary to the provisions, upon conviction, must be fined not more than one hundred dollars or not less than twenty-five dollars or imprisoned for not more than thirty days or not less than ten days."

Department exempt from document copying charges

SECTION 5. Section 20-1-350 of the 1976 Code is amended to read:

"Section 20-1-350. The Department of Health and Environmental Control shall properly file and index every marriage license and certificate and may provide a certified copy of any license and certificate upon application of proper parties except that upon request the Department of Social Services or its designee must be provided at no charge with a copy or certified copy of a license and certificate for the purpose of establishing paternity or establishing, modifying, or enforcing a child support obligation."

Social security numbers required

SECTION 6. Section 20-7-949 of the 1976 Code, as added by Act 452 of 1996, is amended to read:

"Section 20-7-949. An applicant for a license or for renewal of a license shall submit the applicant's social security number to the licensing entity which must be recorded on the application."

Social security numbers required

SECTION 7. Section 20-7-957 of the 1976 Code is amended to read:

"Section 20-7-957. Upon a finding that the putative father is the natural father of the child, the court must issue an order designating the putative father as the natural father. The order also shall set forth the social security numbers of both parents. The order shall establish a duty of support and provide for child support payments in amounts and at a frequency to be determined by the court. The order also shall provide for other relief which has been properly prayed for in the pleadings and which is considered reasonable and just by the court.

Upon a finding that the putative father is not the father of the child, the court shall issue an order which sets forth this finding."

Social security numbers required

SECTION 8. Section 44-7-77 of the 1976 Code, as last amended by Section 7, Part VI, Act 102 of 1995, is further amended to read:

"Section 44-7-77. The Department of Health and Environmental Control and the State Department of Social Services, in conjunction with the South Carolina Hospital Association, shall develop and implement a program to promote obtaining voluntary acknowledgments of paternity as soon after birth as possible and where possible before the release of the newborn from the hospital. A voluntary acknowledgment including those obtained through an in-hospital program shall contain the requirements of Section 20-7-956(A)(4) and the social security number of both parents, and must be signed by both parents. The signatures must be notarized. As part of its in-hospital voluntary acknowledgment of paternity program, a birthing hospital as part of the birth registration process, shall collect, where ascertainable, information which is or may be necessary for the establishment of the paternity of the child and for the establishment of child support. The information to be collected on the father or on the putative father if paternity has not been established includes, but is not limited to, the name of the father, his date of birth, home address, social security number, and employer's name, and additionally for the putative father, the names and addresses of the putative father's parents."

Department exempt from document copying charges

SECTION 9. Section 44-63-60 of the 1976 Code, as last amended by Act 341 of 1988, is further amended to read:

"Section 44-63-60. The state registrar, upon application by those entitled pursuant to Section 44-63-80, 44-63-82, 44-63-84, or 44-63-86, shall furnish a certificate under the seal of the department showing data from the records of births, deaths, marriages, and divorces registered with the department or a certified copy under seal of such records. Federal, state, local, and other public or private agencies must be furnished copies or data for statistical, health, or legal purposes upon such terms or conditions as prescribed by the state registrar except that upon request the Department of Social Services or its designee must be provided at no charge with a copy or certified copy of a certificate for the purpose of establishing paternity or establishing, modifying, or enforcing a child support obligation."

Social security numbers required

SECTION 10. Section 44-63-75 of the 1976 Code, as added by Act 513 of 1994, is amended to read:

"Section 44-63-75. (A) Social security numbers must be included in the forms prescribed by the state registrar for:

(1) the recordation of birth, death, and divorce;

(2) the application of marriage.

(B) Social security numbers must be recorded on birth and death certificates."

Copies available to department on request

SECTION 11. Section 44-63-80 of the 1976 Code, as last amended by Act 341 of 1988, is further amended to read:

"Section 44-63-80. Except as otherwise provided, certified copies of the original birth certificate or any new or amendatory certificate, exclusive of that portion containing confidential information, must be issued only by the state registrar and only to the registrant, if of legal age, his parent or guardian, or other legal representative, and upon request to the Department of Social Services or its designee for the purpose of establishing paternity or establishing, modifying, or enforcing a child support obligation. However, the certified copy of the birth certificate may not disclose the name of the father in any illegitimate birth unless the name of the father is entered on the certificate pursuant to Section 44-63-163 or Section 44-63-165. The short form certificate or birth card may be furnished only to the registrant, his parent or guardian, or other legal representative by the state or county registrar.

When one hundred years have elapsed after the date of birth, these records must be made available in photographic or other suitable format for public viewing."

Copies available to department on request; exempt from copying charges

SECTION 12. Section 44-63-84 of the 1976 Code, as added by Act 341 of 1988, is amended to read:

"Section 44-63-84. Copies of death certificates may be issued to members of the deceased's family or their respective legal representatives. Upon request, the Department of Social Services or its designee must be provided with copies or certified copies of death certificates for the purpose of establishing paternity or establishing, modifying, or enforcing a child support obligation. Others who demonstrate a direct and tangible interest may be issued copies when information is needed for the determination of a personal or property right. Other applicants may be provided with a statement that the death occurred, the date, and county of death. However, when fifty years have elapsed after the date of death, these records become public records and any person may obtain copies upon submission of an application containing sufficient information to locate the record. For each copy issued or search of the files made, the state registrar shall collect the same fee as is charged for the issuance of certified copies or a search of the files for other records in his possession, except that the Department of Social Services or its designee may not be charged this fee.

When fifty years have elapsed after the date of death, these records must be made available in photographic or other suitable format for public viewing."

Copies available to department on request

SECTION 13. Section 44-63-86 of the 1976 Code, as added by Act 341 of 1988, is amended to read:

"Section 44-63-86. Copies of marriage certificates and reports of divorce registered with the Department of Health and Environmental Control must be issued to the parties married or divorced, their adult children, a present or former spouse of either party married or divorced, their respective legal representative, or upon request to the Department of Social Services or its designee for the purpose of establishing paternity or establishing, modifying, or enforcing a child support obligation. Other applicants may be provided with a statement that the marriage or divorce occurred, the date, and county of the event."

Department exempt from document copying charges

SECTION 14. Section 44-63-110 of the 1976 Code, as last amended by Act 181 of 1993, is further amended to read:

"Section 44-63-110. For making, furnishing, or certifying any card, certificate, or certified copy of the record, for filing a record amendment according to the provisions of Section 44-63-60, 44-63-80, 44-63-90 or 44-63-100, or for searching the record, when no card, certificate, or certified copy is made, a fee in an amount as determined by the Board of the Department of Health and Environmental Control must be paid by the applicant, except that the Department of Social Services or its designee is not required to pay a fee when the information is needed for the purpose of establishing paternity or establishing, modifying, or enforcing a child support obligation. The amount of the fee established by the board may not exceed the cost of the services performed and to the extent possible must be charged on a uniform basis throughout the State. When verification of the facts contained in these records is needed for Veterans Administration purposes in connection with a claim, it must be furnished without charge to the Veterans Affairs Division of the Governor's Office or to a county veterans affairs officer upon request and upon the furnishing of satisfactory evidence that the request is for the purpose authorized in this chapter."

Creating, perfecting, and collecting against liens for past due child support

SECTION 15. Subarticle 6, Article 9, Chapter 7, Title 20 of the 1976 Code is amended by adding:

Section 20-7-1295. (A) A child support obligation which is unpaid in an amount equal to or greater than one thousand dollars, as of the date on which it was due, is a lien in favor of the obligee in an amount sufficient to satisfy unpaid child support, whether the amount due is a fixed sum or is accruing periodically. An amount of restitution established by the Department of Social Services, Child Support Enforcement Division, or its designee (division) or the family court is due and payable as of the date the amount is established. The lien shall incorporate any unpaid child support which may accrue in the future and does not terminate except as provided in subsection (D). Upon recordation or registration in accordance with subsection (C), the lien shall encumber all tangible and intangible property, whether real or personal, and an interest in property, whether legal or equitable, belonging to the obligor. An interest in property acquired by the obligor after the child support lien arises is subject to the lien, subject to the limitations provided in subsections (C) and (D).

(B) When the division determines that child support is unpaid in an amount equal to or greater than one thousand dollars, it shall send written notice to the obligor by first-class mail to the obligor's last known address, as filed with the tribunal pursuant to Section 20-7-854. The notice shall specify the amount unpaid as of the date of the notice or other date certain and the right of the obligor to request an administrative review by filing a written request with the division within thirty days of the date of the notice. If the obligor files a timely written request for an administrative review, the division shall conduct the review within thirty days of receiving the request.

(C) The division shall file notice of a lien with respect to real property with the register of mesne conveyances for any county in the State where the obligor owns property. The social security number of the obligor must be noted on the notice of the lien. The filing operates to perfect a lien when recorded, as to any interest in real property owned by the obligor that is located in the county where the lien is recorded. A special index for liens created under this section must be maintained by the register of mesne conveyances of each county of the State. If the obligor subsequently acquires an interest in real property, the lien is perfected upon the recording of the instrument by which the interest is obtained in the register of mesne conveyances where the notice of the lien was filed within six years prior thereto. A child support lien is perfected as to real property when both the notice thereof and a deed or other instrument in the name of the obligor are on file in the register of mesne conveyances for the county where the obligor owns property without respect to whether the lien or the deed or other instrument was recorded first. The division also shall file notice of a child support lien, with the social security number of the obligor on the notice, with respect to personal property with the Department of Transportation, the Department of Natural Resources, a county, or other office or agency responsible for the filing or recording of liens. The filing of a notice of a lien or of a waiver or release of a lien must be received and registered or recorded without payment of a fee. The division may file notice of a lien or waiver or release of a lien or may transmit information to or receive information from any registry of deeds or other office or agency responsible for the filing or recording of liens by any means, including electronic means. The perfected lien is not subordinate to a recorded lien except a lien that has been perfected before the date on which the child support lien was perfected. The division, upon request of the obligor, may subordinate the child support lien to a subsequently perfected mortgage. To assist in the collection of a debt by the division, the division may disclose the name of an obligor against whom a lien has arisen and other identifying information including the existence of the lien and the amount of the outstanding obligation.

(D) The lien expires upon termination of a current child support obligation and payment in full of unpaid child support or upon release of the lien by the division. In any event, a lien under this section expires six years from the date on which the lien was first perfected. The lien may be extended for additional periods of six years each by recording, during the fifth year of the lien, a further notice of the lien, as provided in subsection (C), without affecting the priority of the lien. Expiration of the lien does not terminate the underlying order or judgment of child support. The division may issue a full or partial waiver of a lien imposed under this section. The waiver or release is conclusive evidence that the lien upon the property covered by the waiver or release is extinguished.

(E) If an obligor against whom a lien has arisen and has been perfected under subsection (C) neglects or refuses to pay the sum due after the expiration of the thirty-day notice period specified in subsection (B), the division may collect the unpaid child support and levy upon all property as provided in this section. For the purposes of this section, 'levy' includes the power of distraint and seizure by any means. A person in possession of property upon which a lien having priority under subsection (C) has been perfected, upon demand, shall surrender the property to the division as pursuant to this section. Financial institutions which hold assets of an obligor, after proper identification and notification by the division, shall encumber or surrender deposits, credits, or other personal property held by the institution on behalf of an obligor who is subject to a child support lien, pursuant to Section 43-5-596. Financial institutions are allowed to either submit account information directly to the State where it is matched against the parent data base, or financial institutions may request a file and complete the comparison and submit it directly to the State. The social security number must be used for the matching process and not the full name of the person who maintains an account with that entity. A levy on property held by an organization with respect to a life insurance or endowment contract, without necessity for the surrender of the contract document, constitutes a demand by the division for payment of the amount of the lien and the exercise of the right of the obligor to the advance of the amount. The organization shall pay the amount ninety days after service of the notice of levy. The levy is considered satisfied if the organization pays over to the division the full amount which the obligor could have had advanced to him, if the amount does not exceed the amount of the lien. Whenever any property upon which levy has been made is not sufficient to satisfy the claim of the state for which levy is made, the division thereafter, as often as may be necessary, proceed to levy, without further notice, upon any other property of the obligor subject to levy upon first perfecting its lien as provided in subsection (C), until the amount due from the obligor and the expenses are fully paid. With respect to a seizure or levy of real property or tangible personal property, the sheriff shall proceed in the manner prescribed by Sections 15-39-610, et seq., insofar as these sections are not inconsistent with this section. The division has rights to property remaining after satisfying superior perfected liens, as provided in subsection (C).

(F) Upon demand by the division, a person who fails or refuses to surrender property subject to levy pursuant to this section is liable in his own person and estate to the State in a sum equal to the value of the property not so surrendered but not exceeding the amount of the lien, and the costs at the rate established by Section 23-19-10.

(G) A person in possession of, or obligated with respect to, property who, upon demand by the division, surrenders the property or discharges the obligations to the division or who pays a liability under this section, must be discharged from any obligation or liability to the obligor arising from the surrender or payment. A levy on an organization with respect to a life insurance or endowment contract which is satisfied pursuant to this section, discharges the organization from any obligation or liability to any beneficiary arising from the surrender or payment.

(H) The division shall send timely written notice to the obligor by first-class mail of any action taken to perfect a lien, execute a levy, or seize any property. The notice shall specify the amount due, the steps to be followed to release the property so placed under lien, levied, or seized, and the time period within which to respond to the notice and shall include the name of the court or administrative agency of competent jurisdiction which entered the child support order.

(I) A person aggrieved by a determination of the division pursuant to subsection (B), upon exhaustion of the procedures for administrative review, may seek judicial review in the court where the order or judgment was issued or registered. Commencement of the review shall not stay enforcement of child support. The court may review the proceedings taken by the division pursuant to this section and may correct any mistakes of fact; however, the court may not reduce or retroactively modify child support arrears.

(J) A child support enforcement agency in a jurisdiction outside this State may request the division to enforce a child support order issued by a court or administrative agency in another jurisdiction or a lien arising under the law of another jurisdiction. The order or lien must be accorded full faith and credit and the order or lien must be enforced as if the order was issued or the lien arose in South Carolina, without the necessity of registering the order with the court.

(K) The division is authorized to promulgate rules and regulations, if necessary, to implement the provision of this section."

Temporary orders for child support

SECTION 16. The 1976 Code is amended by adding:

"Section 20-7-92. The court shall issue, upon motion of either party, a temporary order requiring the payment of child support pending an administrative or judicial determination of parentage if:

(1) the defendant has signed a verified voluntary acknowledgment of paternity which complies with the requirements of Section 20-7-956(A)(4);

(2) the defendant has been determined pursuant to law to be the parent; or

(3) there is other clear and convincing evidence that the defendant is the child's parent."

Medical bills are prima facie evidence of costs incurred

SECTION 17. The 1976 Code is amended by adding:

"Section 20-7-855. If copies of bills are furnished to the adverse party at least ten days before the date of an administrative or judicial hearing, the bills for testing for parentage and for prenatal and postnatal health care of the mother and child must be admitted as evidence without third party foundation testimony and are prima facie evidence of the amounts incurred for the services or for testing and that the amounts were reasonable, necessary, and customary.

Any individual or entity who prepares or submits falsified billing information shall be subject to the contempt powers of the court."

Verified voluntary acknowledgment of paternity creates finding of paternity

SECTION 18. The 1976 Code is amended by adding:

"Section 20-7-958. (A) A verified voluntary acknowledgment of paternity creates a legal finding of paternity, subject to the right of any signatory to rescind the acknowledgment within the earlier of:

(1) sixty days; or

(2) the date of an administrative or judicial proceeding relating to the child including a proceeding to establish a support order in which the signatory is a party.

(B) Upon the expiration of the sixty-day period provided for in subsection (A), a verified voluntary acknowledgment of paternity may be challenged in court only on the basis of fraud, duress, or material mistake of fact, with the burden of proof upon the challenger.

(C) In the event of a challenge, legal responsibilities including child support obligations of any signatory arising from the acknowledgment may not be suspended during the challenge except for good cause shown.

(D) Judicial or administrative proceedings are not required or permitted to ratify an unchallenged acknowledgment of paternity."

Contents of acknowledgment of paternity

SECTION 19. Section 20-7-956(A)(4) of the 1976 Code, as last amended by Act 513 of 1994, is further amended to read:

"(4) A verified voluntary acknowledgment of paternity. This acknowledgment creates a rebuttable presumption of the putative father's paternity except that a verified voluntary acknowledgment of paternity executed after January 1, 1998, creates a conclusive presumption of the putative father's paternity subject to the provisions of Section 20-7-958. The person acknowledging paternity must be given the opportunity to seek legal advice prior to signing a verified voluntary acknowledgment. A verified voluntary acknowledgment must be made by a sworn document, signed by the person acknowledging paternity and witnessed by (1) that person's attorney, parent, or guardian or (2) a person eighteen years of age or older who is not related to the child and not employed or acting under the authority of the Department of Social Services. The witness must attach to the acknowledgment a written certification which specifies that prior to signing the acknowledgment, the provisions of the acknowledgment were discussed with the person acknowledging paternity and that, based upon this discussion, it is the witness' opinion that the acknowledgment is being given voluntarily and that it is not being obtained under duress or through coercion."

Certificate may be based on order of administrative agency

SECTION 20. Section 44-63-163 of the 1976 Code, as added by Act 341 of 1988, is amended to read:

"Section 44-63-163. A certificate must be prepared for a child born in this State to reflect the name of the father determined by the court or an administrative agency of competent jurisdiction upon receipt of a certified copy of a court or administrative determination of paternity pursuant to Section 20-7-952. If the surname of the child is not decreed by the court, the request for the certificate must specify the surname to be placed on the certificate. When an amended certificate is prepared, the original certificate and certified copy of the court order must be placed in a sealed file not to be subject to inspection except by order of the family court."

Interstate income withholding procedures

SECTION 21. The 1976 Code is amended by adding:

"Section 20-7-1124. An income withholding order issued in another state may be sent by first-class mail to the person or entity defined as the obligor's employer under Section 20-7-1315 et seq., without first filing a petition or comparable pleading or registering the order with a tribunal in this State."

Interstate income withholding procedures

SECTION 22. The 1976 Code is amended by adding:

"Section 20-7-1126. If the obligor's employer receives multiple orders to withhold support from the earnings of the same obligor, and if the employer complies with the law of the state of the obligor's principal place of employment for the establishment of priorities for withholding and allocating income withheld for multiple child support obligees, the employer is deemed to have satisfied the terms of the multiple orders.

Section 20-7-1127. An employer who complies with an income withholding order issued in another state in accordance with this subarticle is not subject to civil liability to any individual or agency with regard to the employer's withholding child support from the obligor's income.

Section 20-7-1128. An employer who wilfully fails to comply with an income withholding order issued by another state and received for enforcement is subject to the same penalties that may be imposed for noncompliance with an order issued by a tribunal of this State.

Section 20-7-1129. (A) An obligor may contest the validity or enforcement of an income withholding order issued in another state and received directly by an employer in this State in the same manner as if the order had been issued by a tribunal of this State.

(B) The obligor shall give notice of the contest to:

(1) a support enforcement agency providing services to the obligee;

(2) each employer which has directly received an income withholding order; and

(3) the person or agency designated to receive payments in the income withholding order; or if no person or agency is designated, to the obligee."

Interstate income withholding procedures

SECTION 23. The 1976 Code is amended by adding:

"Section 20-7-1153. A tribunal of this State shall recognize a modification of its earlier child support order by a tribunal of another state which assumed jurisdiction pursuant to a law substantially similar to this subarticle and upon request, except as otherwise provided in this subarticle, shall:

(1) enforce any arrearage and provide other appropriate relief for violations of the modified order which occurred before the effective date of the modification;

(2) enforce the modified order to the extent it was not superseded by the modification; and

(3) recognize the modifying order of the other state, upon registration, for the purpose of enforcement."

Interstate income withholding procedures

SECTION 24. The 1976 Code is amended by adding:

"Section 20-7-1155. Within thirty days after issuance of a modified child support order, the party obtaining the modification shall file a certified copy of the order with the issuing tribunal which had continuing, exclusive jurisdiction over the earlier order and in those tribunals in which that party knows the earlier order has been registered. Failure of the party obtaining the order to file a certified copy as required subjects that party to appropriate sanctions by a tribunal in which the issue of failure to file arises; however, that failure has no effect on the validity or enforceability of the modified order of the new tribunal of continuing, exclusive jurisdiction."

Definitions revised

SECTION 25. Section 20-7-965(7), (16), and (19) of the 1976 Code is amended to read:

"(7) 'Initiating state' means a state from which a proceeding is forwarded or in which a proceeding is filed for forwarding to a responding state under this subarticle or a law or procedure substantially similar to this subarticle, or under a law or procedure substantially similar to the Uniform Reciprocal Enforcement of Support Act or the Revised Uniform Reciprocal Enforcement of Support Act.

(16) 'Responding state' means a state in which a proceeding is filed or to which a proceeding is forwarded for filing from an initiating state under this subarticle or a law substantially similar to this subarticle, or under a law or procedure substantially similar to the Uniform Reciprocal Enforcement of Support Act or the Revised Reciprocal Enforcement of Support Act.

(19) 'State' means a state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or any territory or insular possession subject to the jurisdiction of the United States. The term 'state' includes an Indian tribe and includes a foreign jurisdiction that has enacted a law or established procedures for issuance and enforcement of support orders which are substantially similar to the procedures under this subarticle or the procedures under the Uniform Reciprocal Enforcement of Support Act or the Revised Uniform Reciprocal Enforcement of Support Act."

Interstate income withholding procedures

SECTION 26. Section 20-7-1010 of the 1976 Code, as last amended by Act 452 of 1996, is further amended to read:

"Section 20-7-1010. (A) If a proceeding is brought under this subarticle and only one tribunal has issued a child support order, the order of that tribunal is controlling and must be recognized.

(B) If a proceeding is brought under this subarticle and two or more child support orders have been issued by tribunals of this State or another state with regard to the same obligor and child, a tribunal of this State shall apply the following rules in determining which order to recognize for purposes of continuing, exclusive jurisdiction:

(1) if only one of the tribunals would have continuing, exclusive jurisdiction under the provisions of this subarticle, the order of that tribunal is controlling and must be recognized;

(2) if more than one of the tribunals would have continuing, exclusive jurisdiction under the provisions of this subarticle, an order issued by a tribunal in the current home state of the child must be recognized, however, if an order has not been issued in the current home state of the child, the order most recently issued is controlling and must be recognized;

(3) if none of the tribunals would have continuing, exclusive jurisdiction under the provisions of this subarticle, a tribunal of this State having jurisdiction over the parties must issue a child support order which is controlling and must be recognized.

(C) If two or more child support orders have been issued for the same obligor and child, and if the obligor or the individual obligee resides in this State, a party may request a tribunal of this State to determine which order controls and must be recognized under subsection (B). The request must be accompanied by a certified copy of every support order in effect. Every party whose rights may be affected by a determination of the controlling order must be given notice of the request for that determination.

(D) The tribunal that issued the order that must be recognized as controlling under subsection (A), (B), or (C) is the tribunal that has continuing, exclusive jurisdiction in accordance with Section 20-7-1000.

(E) A tribunal of this State which determines by order the identity of the controlling child support order under subsections (B)(1) or (B)(2) or which issues a new controlling child support order under subsection (B)(3) shall include in that order the basis upon which the tribunal made its determination.

(F) Within thirty days after issuance of the order determining the identity of the controlling order, the party obtaining that order shall file a certified copy of it with each tribunal that had issued or registered an earlier order of child support. Failure of the party obtaining the order to file a certified copy as required subjects that party to appropriate sanctions by a tribunal in which the issue of failure to file arises, however, that failure has no effect on the validity or enforceability of the controlling order."

Interstate income withholding procedures

SECTION 27. Section 20-7-1040 of the 1976 Code, as last amended by Act 452 of 1996, is further amended to read:

"Section 20-7-1040. (A) Upon the filing of a proceeding authorized by this subarticle, a tribunal of this State as an initiating tribunal shall forward three copies of the complaint and its accompanying documents:

(1) to the responding tribunal or appropriate support enforcement agency in the responding state; or

(2) if the identity of the responding tribunal is unknown, to the state information agency of the responding state with a request that they be forwarded to the appropriate tribunal and that receipt be acknowledged.

(B) If a responding state has not enacted this subarticle or a law or procedure substantially similar to this subarticle, a tribunal of this State may issue a certificate or other documents and make findings required by the law of the responding state. If the responding state is a foreign jurisdiction, the tribunal may specify the amount of support sought and provide other documents necessary to satisfy the requirements of the responding state."

Interstate income withholding procedures

SECTION 28. Section 20-7-1100(D) of the 1976 Code, as last amended by Act 452 of 1996, is further amended to read:

"(D) If copies of bills are furnished to the adverse party at least ten days before the date of an administrative or judicial hearing, the bills for testing for parentage and for prenatal and postnatal health care of the mother and child must be admitted as evidence without third party foundation testimony and are prima facie evidence of the amounts incurred for these testing services and that these amounts that the charges billed were reasonable, necessary, and customary."

Interstate income withholding procedures

SECTION 29. Section 20-7-1125 of the 1976 Code, as last amended by Act 452 of 1996, is further amended to read:

"Section 20-7-1125. (A) Upon receipt of an income withholding order of another state, the obligor's employer immediately shall provide a copy of the order to the obligor.

(B) The employer shall treat an income withholding order issued in another state which appears regular on its face as if it had been issued by a tribunal of this State.

(C) Except as provided in subsection (D) and Section 20-7-1126, the employer shall withhold and distribute the funds as directed in the withholding order by complying with the terms of the order, as applicable, that specify:

(1) the duration and the amount of periodic payments of current child support, stated as a sum certain;

(2) the person or agency designated to receive payments and the address to which payments are to be forwarded;

(3) medical support, whether in the form of periodic cash payment stated as a sum certain or ordering the obligor to provide health insurance coverage for the child under a policy available through the obligor's employment;

(4) the amount of periodic payments of fees and costs for a support enforcement agency, the issuing tribunal, and the obligee's attorney, stated as sums certain; and

(5) the amount of periodic payments of arrears and interest on arrears, stated as sums certain.

(D) The employer shall comply with the law of the state of the obligor's principal place of employment for withholding from income with respect to:

(1) the employer's fee for processing an income withholding order;

(2) the maximum amount permitted to be withheld from the obligor's income; and

(3) the time periods within which the employer must implement the withholding order and forward the child support payment."

Interstate income withholding procedures

SECTION 30. Section 20-7-1152 of the 1976 Code, as last amended by Act 452 of 1996, is further amended to read:

"Section 20-7-1152. (A) After a child support order of another state has been registered in this State, unless Section 20-7-1154 applies, the responding tribunal of this State may modify that order only if, after notice and hearing, it finds that:

(1) these requirements are met:

(a) the child, the individual obligee, and the obligor do not reside in the issuing state;

(b) a plaintiff who is a nonresident of this State seeks modification; and

(c) the defendant is subject to the personal jurisdiction of a tribunal of this State; or

(2) an individual party or the child is subject to the personal jurisdiction of a tribunal of this State and all the parties have filed a written consent in the issuing tribunal providing that a tribunal of this State may modify the support order and assume continuing, exclusive jurisdiction over the order. However, if the issuing state is a foreign jurisdiction which has not enacted this subarticle, the written consent of the individual party residing in this State is not required for the tribunal to assume jurisdiction to modify the child support order.

(B) Modification of a registered child support order is subject to the same requirements, procedures, and defenses that apply to the modification of an order issued by a tribunal of this State and may be enforced and satisfied in the same manner.

(C) A tribunal of this State may not modify any aspect of a child support order that may not be modified under the law of the issuing state. If two or more tribunals have issued child support orders for the same obligor and child, the order that is controlling and must be recognized under Section 20-7-1010 establishes the nonmodifiable aspects of the support order.

(D) On issuance of an order modifying a child support order issued in another state, a tribunal of this State becomes the tribunal of continuing, exclusive jurisdiction."

Interstate income withholding procedures

SECTION 31. Section 20-7-1154 of the 1976 Code, as last amended by Act 452 of 1996, is further amended to read:

"Section 20-7-1154. (A) If all of the individual parties reside in this State and the child does not reside in the issuing state, a tribunal of this State has jurisdiction to enforce and to modify the issuing state's child support order in a proceeding to register that order.

(B) A tribunal of this State exercising jurisdiction as provided in this section shall apply Sections 20-7-965 through 20-7-1020 and Sections 20-7-1132 through 20-7-1154 to the enforcement or modification proceeding. Sections 20-7-1025 through 20-7-1130 and Sections 20-7-1156 through 20-7-1162 do not apply and the tribunal shall apply the procedural and substantive law of this State."

Definitions revised

SECTION 32. Section 20-7-1315(A)(1) and (5) and (B) of the 1976 Code, as last amended by Act 510 of 1994, is further amended to read:

"(1) 'Order for support' means any order of a court or an administrative agency of competent jurisdiction which provides for periodic payments of funds for the support of a child or maintenance of a spouse or former spouse and support of a child, whether temporary or final, whether incidental to a proceeding for divorce, separation, separate maintenance, paternity, guardianship, or otherwise and includes any order providing for a modification of support payment of an arrearage or reimbursement of support.

(5) 'Income' means any periodic form of payment to an individual regardless of source including, but not limited to, wages, salary, commission, bonuses, compensation as an independent contractor, workers' compensation, disability, annuity and retirement benefits, payments made pursuant to a retirement program, interest, and any other payments made by a person or an agency or department of the federal, state, or local government provided the income excludes:

(a) amounts required to by law to be withheld, other than creditor claims, including, but not limited to, federal, state, and local taxes, social security and other retirement deductions, and disability contributions;

(b) amounts exempted by federal law;

(c) public assistance payments.

Any other state or local laws which limit or exempt income or the amount or percentage of income that can be withheld do not apply.

(B)(1) For all Title IV-D cases in which support orders are issued or modified after October 31, 1990, and for all nontitle IV-D cases in which support orders are issued or modified after January 3, 1994, the income of an obligor is subject to immediate withholding as of the effective date of the order without the requirement that an arrearage accumulate. However, income is not subject to withholding if:

(a) one of the parties demonstrates and the court finds that there is good cause not to require immediate income withholding; or

(b) a written agreement is reached between both parties which provides for an alternative arrangement.

(2) All orders for support entered or modified in the State before October 1, 1996, if not otherwise subject to wage withholding, are subject to withholding if a delinquency occurs without the need for a judicial or administrative hearing. These orders must be construed to contain this withholding provision even if the provision has been omitted from the written order; however, the court may order withholding to begin immediately for good cause shown. The court is required to make specified written findings to support immediate withholding.

(3) Income withholding must be initiated in all Title IV-D cases upon the request of the obligee without the necessity of a delinquency, if the State approves the request in accordance with the procedures and standards as it may establish. If the obligee requests income withholding pursuant to this subsection, notice of the request must be provided to the obligor by the clerk of court, and if the obligor objects to the income withholding within ten days after the postmarked date of the notice, a hearing must be held, and the family court shall subject the obligor's income to withholding unless the court finds that there is good cause not to require immediate income withholding. Where there is no objection by the obligor after proper notice, the clerk of court shall implement immediate income withholding.

(C)(1) An obligor may petition the court at any time prior to the occurrence of a delinquency seeking an order for income withholding procedures to begin immediately.

(2) Where the obligor makes payments directly to the obligee pursuant to an order for support and where income withholding procedures take effect, the provisions to pay directly are superseded by the withholding process and the obligor and the payor on behalf of the obligor during the period of withholding must pay this support through the court."

Transmittal of information

SECTION 33. Section 20-7-1315(L)(6) of the 1976 Code, as added by Act 102 of 1995, is amended to read:

"(6) Information received by the South Carolina Employment Security Commission from employers which includes information contained in the reports provided for in this section shall transmit this information to the Department of Social Services within fifteen working days after the end of each quarter."

Administrative change of payee

SECTION 34. The 1976 Code is amended by adding:

"Section 20-7-9570. In cases in which support is subject to an assignment or a requirement to pay through any state disbursement unit which may be established, the division or its designee may direct the obligor or the payor to change the payee to the appropriate government entity. The division shall provide written notification of this change to the obligor and the obligee not less than ten days before the effective date of the change."

Administrative change of payee

SECTION 35. Section 20-7-9505 of the 1976 Code, as last amended by Act 452 of 1996, is further amended to read:

"Section 20-7-9505. Notwithstanding Section 20-7-420 and any other provision of law, the Child Support Enforcement Division of the Department of Social Services, or its designee, also has jurisdiction to establish paternity, to establish and enforce child support, and to administratively change the payee in cases brought pursuant to Title IV-D of the Social Security Act in accordance with this article."

Definitions revised

SECTION 36. Section 20-7-9510(13) of the 1976 Code, as added by Act 102 of 1995, is amended to read:

"(13) 'Payee' means a custodial parent on whose behalf child support payments are being collected or an agency or its designee in this or another state to which an assignment of rights to child support has been made.

(14) 'Receipt of notice' means either the date on which service of process of a notice of financial responsibility is actually accomplished or the date on the return receipt if service is by certified mail, both in accordance with one of the methods of service specified in Section 20-7-9520."

Distribution of fines

SECTION 37. The 1976 Code is amended by adding:

"Section 20-7-856. Fines collected pursuant to Sections 20-7-9575, 43-5-595(C), and 43-5-598(G) must be distributed as follows:

(1) The Department of Social Services shall pay to the federal government the federal share of the amount collected;

(2) The Department of Social Services shall use the state share of the amount collected pursuant to subsection (1) in the administration of the child support enforcement program."

Authority to issue administrative subpoenas

SECTION 38. The 1976 Code is amended by adding:

"Section 20-7-9575. When necessary in the discharge of the duties of the department to establish, modify, or enforce a child support order, the department may issue an administrative subpoena or subpoena duces tecum to a state, county, or local agency, board or commission, or to any private entity or individual or to any representative of a state, county, or local agency, board or commission, or private entity to compel the production of documents, books, papers, correspondence, memoranda, and other records relevant to the discharge of the department's duties. The department may assess a civil fine of one hundred dollars per occurrence for failure to obey a subpoena or subpoena duces tecum issued pursuant to this section, in addition to any other remedies as permitted by law. A subpoena or subpoena duces tecum issued under this section may be enforced pursuant to Section 20-7-420."

Court to enforce administrative subpoena

SECTION 39. Section 20-7-420 of the 1976 Code, as last amended by Act 446 of 1996, is amended by adding at the end:

"(43) To enforce an administrative subpoena or subpoena duces tecum issued by the Department of Social Services pursuant to Section 20-7-9580 and to enforce fines assessed by the department pursuant to Sections 20-7-9575, 43-5-595(C), and 43-5-598(G)."

Transfer of income and property to avoid paying child support

SECTION 40. Section 27-23-10 of the 1976 Code is amended to read:

"Section 27-23-10. (A) Every gift, grant, alienation, bargain, transfer, and conveyance of lands, tenements, or hereditaments, goods and chattels or any of them, or of any lease, rent, commons, or other profit or charge out of the same, by writing or otherwise, and every bond, suit, judgment, and execution which may be had or made to or for any intent or purpose to delay, hinder, or defraud creditors and others of their just and lawful actions, suits, debts, accounts, damages, penalties, and forfeitures must be deemed and taken (only as against that person or persons, his or their heirs, successors, executors, administrators and assigns, and every one of them whose actions, suits, debts, accounts, damages, penalties, and forfeitures by guileful, covinous, or fraudulent devices and practices are, must, or might be in any ways disturbed, hindered, delayed, or defrauded) to be clearly and utterly void, frustrate and of no effect, any pretense, color, feigned consideration, expressing of use, or any other matter or thing to the contrary notwithstanding.

(B) A showing of two or more of the following creates a rebuttable presumption that a child support debtor intended to transfer income or property to avoid payment to a child support creditor:

(1) a close relationship between the transferor and transferee;

(2) the debtor retained possession or control of the property transferred after the transfer;

(3) the transfer or obligation was not disclosed or was concealed;

(4) before the transfer was made or obligation was incurred, the debtor had been sued or threatened with suit;

(5) the transfer was substantially all of the debtor's assets;

(6) the debtor absconded;

(7) the debtor removed or concealed assets;

(8) the value of the consideration received by the debtor was not reasonably equivalent to the value of the asset transferred or the amount of the obligation incurred;

(9) the debtor was insolvent or became insolvent shortly after the transfer was made or the obligation was incurred;

(10) the transfer occurred shortly before or after a substantial debt was incurred; and

(11) there was a departure from the usual method of business."

Information required from employers, governmental agencies, financial institutions, and utility companies

SECTION 41. The 1976 Code is amended by adding:

"Section 43-5-595. (A) Pursuant to Section 43-5-590(d), the department shall attempt to locate individuals for the purposes of establishing paternity or establishing, modifying, or enforcing a child support obligation. Notwithstanding any other provision of law making this information confidential, the following entities in the State shall provide promptly to the department, its designee, or a federally-approved child support agency of another state, the following information, upon request by the department or other agency for the purpose of establishing paternity or establishing, modifying, or enforcing a support obligation:

(1) All entities in the State including, but not limited to, for-profit, nonprofit and governmental employers, and labor organizations shall provide the full name, social security number, date of birth, home address, wages or salary, existing or available medical, hospital, and dental insurance coverage, and number of dependents listed for tax purposes on all employees, contractors, and members of labor organizations.

(2) All utility companies, including wire and nonwire telecommunication companies, cable television companies, and financial institutions shall provide the full name, social security number, date of birth, home address, telephone number, account numbers, and other identifying data, including information on assets and liabilities, on all persons who maintain an account with that entity. For purposes of this item, a financial institution is defined as a federal, state, commercial, or savings bank, savings and loan association, cooperative bank, federal, or state chartered credit union, benefit association, insurance company, safe deposit company, money market mutual fund, or investment company doing business in this State.

(3) A state or local agency of this State shall provide access to information contained in these records:

(a) vital statistics;

(b) state and local tax and revenue records;

(c) records concerning real and titled property;

(d) records of occupational and professional licenses;

(e) records concerning the ownership and control of corporations, partnerships, and other business entities;

(f) employment security records;

(g) records of motor vehicle departments; and

(h) corrections records.

A state or local agency, board, or commission which provides this information to the department may not charge the department a fee for providing the information; however, a commission that receives federal grants, the use of which are restricted, may charge a fee for providing the information.

(B) An entity that provides information pursuant to this section in good faith reliance upon certification by the department that the information is needed to establish paternity or to establish, modify, or enforce a support obligation is not liable for damages resulting from the disclosure.

(C) An entity that fails to provide the requested information within thirty days of the request may be subject to a civil penalty of $100.00 for each occurrence. Fines imposed pursuant to this subsection must be enforced as provided for in Section 20-7-420(43) and distributed according to Section 20-7-856.

Section 43-5-596. (A) In the manner and form prescribed by the Child Support Enforcement Division, a financial institution, as defined in Section 43-5-595(A)(2), on a quarterly basis, shall provide the division or its designee information on account holders for use in the establishment, enforcement, and collection of child support obligations including, but not limited to:

(1) full name;

(2) social security number or taxpayer identification number;

(3) record address;

(4) account number(s); and

(5) information on assets and liabilities.

(B) Utilizing automated data exchanges to the maximum extent feasible, a financial institution shall provide for each calendar quarter the name, address, social security number, and other identifying information for each noncustodial parent who maintains an account at the institution and who owes past-due support, as identified by the division by name and social security number.

(C) In response to a notice of lien or levy, a financial institution shall encumber or surrender, as the case may be, assets held by the institution on behalf of a noncustodial parent who is subject to a child support lien.

(D) The department shall pay a reasonable fee to a financial institution for conducting the data match, not to exceed the actual costs incurred by the financial institution.

(E) This section remains in effect until the federal mandate requiring the operation of a financial institution data match is repealed.

Section 43-5-597. (A) Notwithstanding any other provision of federal or state law, a financial institution, as defined in Section 43-5-595(A)(2), is not liable to a person for disclosure of information to the Department of Social Services, its designee, or the department's or designee's employees under Section 43-5-596 for encumbering or surrendering any deposits, credits, or other personal property in response to a notice of lien or levy by the department, or its designee, or for any other action taken in good faith to comply with the requirements of Sections 43-5-595 and 43-5-596.

(B) Upon obtaining a financial record of an individual from a financial institution pursuant to Sections 43-5-595 and 43-5-596, the department, its designee, or the department's or designee's employees may disclose the financial record only for the purpose of, and to the extent necessary in, establishing, modifying, or enforcing a child support obligation of the individual.

(C) If the department, its designee, or the department's or designee's employees knowingly or by reason of negligence disclose a financial record of an individual in violation of subsection (B), the individual whose records were disclosed may bring a civil action for damages against the department, its designee, or the department's or designee's employees in a district court of the United States.

(D) No liability arises under subsection (C) with respect to any disclosure which results from a good faith but erroneous interpretation of subsection (B).

(E) In an action brought under subsection (C), upon a finding of liability on the part of the defendant, the defendant is liable to the plaintiff in an amount equal to the sum of:

(1) the greater of:

(a) one thousand dollars for each act of unauthorized disclosure of a financial record with respect to which the defendant is found liable; or

(b) the sum of:

(i) the actual damages sustained by the plaintiff as a result of the unauthorized disclosure; and

(ii) in the case of a wilful disclosure or a disclosure which is the result of gross negligence, punitive damages; and

(2) the costs, including attorney fees, of the action."

Release of information

SECTION 42. Section 41-29-170 of the 1976 Code, as last amended by Act 98 of 1995, is further amended to read:

"Section 41-29-170. (A) A claimant or a claimant's legal representative must be supplied with information from the records, to the extent necessary for the proper presentation of the claim in any proceeding under Chapters 27 through 41 subject to restrictions the commission may by regulation prescribe. This information may be made available to any agency of this or any other state or any federal agency charged with the administration of a public assistance or state or national new hire directory or an unemployment compensation law or the maintenance of a system of public employment offices, and information obtained in connection with applications for placements may be made available to persons or agencies for purposes appropriate to the operation of a public employment service. Upon request the commission shall furnish to an agency of the United States charged with the administration of public works or assistance through public employment and may furnish to a state agency similarly charged the name, address, ordinary occupation, and employment status of each recipient of benefits and the recipient's rights to further benefits under Chapters 27 through 41.

(B) The State Employment Office shall furnish, upon request of a public agency administering the temporary assistance to needy families (TANF) and child support programs, a state agency administering food stamp coupons, the state or federal agency administering the new hire directory, or any public housing authority, any information in its possession relating to:

(1) individuals who are receiving, have received, or have applied for unemployment insurance;

(2) the amount of benefits being received;

(3) the current home address of these individuals;

(4) whether any offer of work has been refused and, if so, a description of the job and the terms, conditions, and rate of pay;

(5) in the case of requests from a public housing authority, a listing of the current employer and previous employers for the available preceding six calendar quarters;

(6) in the case of requests from the state or federal agency which issues food stamp coupons or the new hire directory, a listing of the current employer and address and any previous employers and their addresses, including wage information, for the available preceding six calendar quarters.

The requesting agency is responsible for reimbursing the South Carolina Employment Security Commission for actual costs incurred in supplying the information. This information must be provided in the most useful and economical format possible."

Unit to develop and implement state plan

SECTION 43. Section 43-5-590(d) of the 1976 Code, as last amended by Act 576 of 1990, is further amended to read:

"(d) The department shall create a single and separate organizational unit which is responsible for developing and implementing a federally-approved state plan for child support. The unit shall maintain a parent locator service to locate absent relatives owing or allegedly owing child support, utilizing all sources of information and legally available records and the parent locator service of the federal Department of Health and Human Services by filing in accordance with Section 453(B) of the Social Security Act. "

New hire reporting directory and procedures

SECTION 44. The 1976 Code is amended by adding:

"Section 43-5-598. (A) As used in this section:

(1) 'Business day' means a day on which state offices are open for regular business.

(2) 'Date of Hire' means the first day the employee works for which the employee is entitled to compensation from the payor of income.

(3) 'Department' means the Department of Social Services, or its designee.

(4) 'Employer' includes a government entity and labor organization and means a person doing business in this State for whom an individual performs a service, of whatever nature, as the employee of the person and except that:

(a) if the person for whom the individual performs services does not have control of the payment of wages for the services, the term 'employer' means the person having control of the payment of wages; and

(b) in the case of a person paying wages on behalf of a nonresident alien, individual, foreign partnership, or foreign corporation, not engaged in trade or business within the United States, the term 'employer' means that person.

(5) 'Labor organization' means an organization in which employees participate and which exists for the purpose, in whole or in part, of dealing with employers concerning grievances, labor disputes, wages, rates of pay, hours of employment, or conditions of work. Hiring halls, which refer individuals for jobs with employers, are 'labor organizations' to the extent that they exist pursuant to an agreement with an employer engaged primarily in the building and construction industry under Section 8(f)(3) of the National Labor Relations Act.

(6) 'New hire' includes an individual newly employed or an individual who has been rehired or has returned to work after being laid off, furloughed, separated, granted leave without pay, or terminated from employment.

(B) By October 1, 1998, the department shall establish a state directory of new hires which shall contain information supplied in accordance with subsection (C) by employers on each new hire.

(C) Beginning October 1, 1998, an employer who hires an employee who resides or works in this State shall report the hiring of the employee to the state directory of new hires within twenty calendar days of the hiring of the employee. However, in the case of an employer transmitting reports magnetically or electronically, these reports must be transmitted semi-monthly, if necessary, not less than twelve nor more than sixteen days apart. The report submitted shall contain:

(1) the employer's name, address, and federal identification number assigned to the employer under section 6109 of the Internal Revenue Code of 1986; and

(2) the employee's name, address, and social security number.

(D) For purposes of this section, an employer must not report information on an employee of a federal or state agency performing intelligence or counterintelligence functions if the head of the agency has determined that reporting pursuant to this section with respect to the employee could endanger the safety of the employee or compromise an ongoing investigation or intelligence mission.

(E) An employer that has employees who are employed in two or more states and that transmits reports magnetically or electronically may comply with subsection (C) by designating one state in which the employer has employees to which the employer will transmit the report required by subsection (C) and transmitting the report to that state. An employer that transmits reports pursuant to this subsection shall notify the Secretary of the United States Department of Health and Human Services in writing as to which state the employer designates for the purpose of sending reports.

(F) Each report required by subsection (C) must be made on a W-4 form or, at the option of the employer, an equivalent form and may be transmitted by first-class mail, facsimile, magnetically, or electronically. Magnetic and electronic submissions must be in a format prescribed by the department.

(G) If an employer fails to report the hiring of an employee pursuant to this section, the employer is subject to a civil penalty of no more than:

(1) twenty-five dollars for the second offense and every offense thereafter; or

(2) five hundred dollars for each and every offense, if the failure is the result of a conspiracy between the employer and the employee not to supply the required report or to supply a false or incomplete report. Fines imposed pursuant to this subsection must be enforced as provided for in Section 20-7-420(43) and distributed according to Section 20-7-856.

(H) Information must be entered into the data base maintained by the state directory of new hires within five business days of receipt from an employer pursuant to subsection (C).

(I) No later than May 1, 1998, the department shall conduct automated comparisons of the social security numbers reported by employers pursuant to subsection (C) and the social security numbers appearing in the records of the State Case Registry created pursuant to Section 43-5-610 for cases being enforced under the federally-approved child support program administered by the department.

(J) When an information comparison conducted under paragraph (I) reveals a match with respect to the social security number of an individual in the records of the State Case Registry, the state directory of new hires shall provide the department with the information reported by the employer pursuant to subsection (C).

(K) Within two business days after the date information regarding a newly hired employee is entered into the state directory of new hires, the department shall transmit a notice to the employer of the employee directing the employer to withhold from the income of the employee an amount equal to the monthly, or other periodic, child support obligation, including any past-due child support obligation, of the employee, unless the employee's income is not subject to withholding pursuant to Section 20-7-1315.

(L) Within three business days after the date information regarding a newly hired employee is entered into the state directory of new hires, the state directory of new hires shall furnish the information to the national directory of new hires.

(M) The state directory of new hires shall include reports received from the Employment Security Commission pursuant to Section 43-5-620. The state directory of new hires shall furnish these reports, on a quarterly basis, to the national directory of new hires by the dates, in the format, and containing the information the Secretary of the United States Department of Health and Human Services specifies in regulations.

(N) Information maintained in the state directory of new hires and national directory of new hires may be utilized for these purposes:

(1) The department shall use information received pursuant to subsection (I) to locate individuals for purposes of establishing paternity and establishing, modifying, and enforcing child support obligations and may disclose this information to a public or private agency that is under contract with the department to carry out these purposes.

(2) The department shall have access to information reported by employers pursuant to subsection (C) for purposes of verifying eligibility for these state administered programs:

(a) Temporary Assistance for Needy Families;

(b) Medicaid under Title XIX of the Social Security Act;

(c) food stamps;

(d) unemployment compensation benefits; and

(e) any state program under a plan approved under Title I, X, XIV, or XVI of the Social Security Act.

(3) The Employment Security Commission shall have access to information reported by employers pursuant to subsection (C) for purposes of administering the employment security program.

(4) The Workers' Compensation Commission or its designee shall have access to information reported by employers pursuant to subsection (C) for purposes of administering the workers' compensation program.

(O) This section remains in effect until the federal mandate requiring a mandatory new hire reporting program is repealed."

Central registry information and release of information

SECTION 45. Section 43-5-610 of the 1976 Code is amended to read:

"Section 43-5-610. (A) A State Case Registry must be maintained in the department that contains records with respect to:

(1) each case in which services are being provided by the department pursuant to Title IV-D of the Social Security Act; and

(2) each support order established or modified in the State after September 30, 1998.

(B) These records shall include standardized data elements for both parents or guardian including names, social security numbers and other uniform identification numbers, dates of birth, and case identification numbers, and contain other information as state and federal regulations may require.

(C) Any records maintained pursuant to this section are available only to the Child Support Enforcement Division of the Department of Social Services, public welfare offices, central registries in other states, the Federal Parent Locator Service, offices of the clerks of court, and courts having jurisdiction in support or abandonment proceedings or actions and only for the purposes for which the records have been maintained.

(D) This section remains in effect until the federal mandate requiring a state case registry is repealed."

Repeal

SECTION 46. Section 43-5-222 of the 1976 Code is repealed.

Time effective

SECTION 47. This act takes effect upon approval by the Governor.

Approved the 10th day of June, 1997.