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TO AMEND SECTION 20-7-1315(M) OF THE 1976 CODE, RELATING TO A CENTRALIZED SYSTEM FOR THE COLLECTION AND DISBURSEMENT OF FUNDS RECEIVED FROM WAGE WITHHOLDING UNDER THE CHILD SUPPORT ENFORCEMENT PROGRAM, TO ESTABLISH THE STATE CHILD SUPPORT COLLECTION AND DISBURSEMENT UNIT, TO PROVIDE THAT THE UNIT MUST OPERATE THE CENTRALIZED COLLECTION AND DISBURSEMENT SYSTEM, TO PROVIDE FOR SPECIFIC OPERATIONAL REQUIREMENTS OF THE SYSTEM, AND TO PROVIDE THAT THE CHILD SUPPORT COLLECTION AND DISBURSEMENT UNIT MAY ADMINISTER AND OPERATE THE SYSTEM ITSELF OR IT MAY CONTRACT WITH ANOTHER STATE AGENCY OR PRIVATE ENTITY TO ADMINISTER AND OPERATE THE SYSTEM.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 20-7-1315(M) of the 1976 Code is amended to read:
"(M)(1) There is established the State Child Support Collection and Disbursement Unit within the Division of Child Support Enforcement. The department The unit shall establish and operate provide a centralized system for the collection and disbursement of funds received from wage withholding under the Child Support Enforcement program. The centralized system shall utilize automated procedures, electronic processes, and computerized technology to ensure, to the greatest extent possible, the efficient and prompt collection and disbursement of support payments. The system must be designed so that employers are given one location to which income withholding is sent. Additionally, the centralized system must allow for a parent to be furnished, upon request, with timely information concerning the status of support payments.
(2) Wage withholding subject to this provision shall include:
(1)(a) all wage withholding cases being enforced by the Child Support Enforcement Division;
(2)(b) all cases not being enforced by the Child Support Enforcement Division in which the support order was initially issued in the State on or after January 1, 1994, and in which the income of the noncustodial parent is subject to withholding.
(3) Amounts collected through by the centralized wage withholding system unit are subject to the five percent court cost pursuant to Section 20-7-1440(C), with disposition of all these fees made in accordance with Section 14-1-203. Employers shall make payment of the amount withheld to the centralized system within seven working days of the date income is withheld. The department unit shall, in compliance with federal requirements, disburse child support funds received from employers to the appropriate county clerk of court for disbursement to the custodial parent.
(4) The unit may administer and operate the centralized system itself or may contract with another state or private entity to administer and operate the system. The unit must maintain direct oversight of the system even if it contracts with another entity to administer and operate it and is ultimately responsible for the other entity's failure to meet the requirements of this subsection.
SECTION 2. This act takes effect upon approval by the Governor.
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