Child support intercept of unemployment benefits

(a) An individual filing a new claim for unemployment compensation, at the time of filing such claim, shall disclose whether or not that individual owes child support obligations as defined under subsection (g). If any individual owes child support obligations and is determined to be eligible for unemployment compensation, the department shall notify the child support enforcement agency that the individual has been determined to be eligible for unemployment compensation. (b) The department shall deduct and withhold, from any unemployment compensation payable to an individual who owes child support obligations, one of the following: (1) The amount specified by the individual to the department to be deducted and withheld under this subsection, if neither paragraph (2) nor (3) is applicable; (2) The amount, if any, determined pursuant to an agreement submitted to the department under section 454(20)(B)(i) of the Social Security Act by the child support enforcement agency, unless paragraph (3) is applicable; or (3) Any amount otherwise required to be so deducted and withheld from such unemployment compensation pursuant to legal process, as that term is defined in section 462(e) of the Social Security Act, properly served upon the department. (c) Any amount deducted and withheld under subsection (b) shall be paid by the department to the child support enforcement agency. (d) Any amount deducted and withheld under subsection (b) shall for all purposes be treated as if it were paid to the individual as unemployment compensation and paid by the individual to the child support enforcement agency in satisfaction of the individual's child support obligations. (e) For purposes of subsections (a) to (d), the term "unemployment compensation" means any compensation payable under this chapter, chapter 385, and amounts payable by the department pursuant to an agreement under any federal law providing for compensation, assistance, or allowances with respect to unemployment. (f) This section applies only if appropriate arrangements have been made for reimbursement by the child support enforcement agency for the administrative costs incurred by the department under this section. (g) As used in this section, the term "child support obligations" includes only obligations which are being enforced pursuant to section 576D-1. (h) As used in this section, the term "child support enforcement agency" means the agency established under chapter 576D.