In 1996, the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) was enacted to increase Federal Automation Requirements by requiring all states to establish and operate a State Disbursement Unit (SDU). Section 454B of the Social Security Act requires the State IV-D Agency to establish and operate an SDU for the collection and disbursement of all child support payments for the following types of child support cases: All IV-D Cases: A IV-D case is one in which the State is required by Federal Law to locate parent ordered to pay support, establish paternity, establish and enforce child support obligations, and collect and distribute support payments. Public assistance recipients are required to open a IV-D case with the State. The State must also accept applications from families who do not receive public assistance to assist in the collection of child support. All non-IV-D Cases: A non-IV-D case is one in which the State is required by Federal Law to only collect and distribute child support payments. Non-IV-D cases do not receive any other child support service, such as enforcement of the child support obligation. Non-IV-D cases are private child support cases in which the parent ordered to pay support has been ordered by the court to pay support by income withholding. The SDU must be operated by the State Child Support Agency or a vendor responsible directly to the state agency. The SDU must be operated in coordination with the California Child Support Enforcement (CSE) system
