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[House Report 106-793]
[From the U.S. Government Publishing Office]

106th Congress                                            Rept. 106-793
                        HOUSE OF REPRESENTATIVES
 2d Session                                                      Part 1

======================================================================

 
                 CHILD SUPPORT DISTRIBUTION ACT OF 2000

                                _______
                                

 July 26, 2000.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

    Mr. Archer, from the Committee on Ways and Means, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 4678]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Ways and Means, to whom was referred the 
bill (H.R. 4678) to provide more child support money to 
families leaving welfare, to simplify the rules governing the 
assignment and distribution of child support collected by 
States on behalf of children, to improve the collection of 
child support, to promote marriage, and for other purposes, 
having considered the same, report favorably thereon with an 
amendment and recommend that the bill as amended do pass.

                                CONTENTS

                                                                   Page
  I. Introduction....................................................16
          A. Purpose and Scope...................................    16
          B. Background and Need for Legislation.................    16
          C. Legislative History.................................    18
 II. Explanation of Provisions.......................................19
III. Vote of The Committee...........................................55
 IV. Budget Effects of The Bill......................................55
          A. Committee Estimate of Budgetary Effects.............    55
          B. Statement Regarding New Budget Authority And Tax 
              Expenditures.......................................    55
          C. Cost Estimate Prepared by The Congressional Budget 
              Office.............................................    55
  V. Other Matters Required to Be Discussed Under The Rules of The 
     House...........................................................68
          A. Committee Oversight Findings And Recommendations....    68
          B. Summary of Findings And Recommendations of The 
              Government Reform Committee........................    68
          C. Constitutional Authority Statement..................    68
          D. Information Relating to Unfunded Mandates...........    69
 VI. Changes in Existing Laws Made by The Bill, as Reported..........69
VII. Letter from the Committee on the Judiciary......................94

  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Child Support Distribution Act of 
2000''.

SEC. 2. TABLE OF CONTENTS.

  The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.

                 TITLE I--DISTRIBUTION OF CHILD SUPPORT

Sec. 101. Distribution of child support collected by States on behalf 
of children receiving certain welfare benefits.

        TITLE II--REVIEW AND ADJUSTMENT OF CHILD SUPPORT ORDERS

Sec. 201. Mandatory review and modification of child support orders for 
TANF recipients.

    TITLE III--DEMONSTRATION OF EXPANDED INFORMATION AND ENFORCEMENT

Sec. 301. Guidelines for involvement of public non-IV-D child support 
enforcement agencies in child support enforcement.
Sec. 302. Demonstrations involving establishment and enforcement of 
child support obligations by public non-IV-D child support enforcement 
agencies.
Sec. 303. GAO report to Congress on private child support enforcement 
agencies.
Sec. 304. Effective date.

                     TITLE IV--EXPANDED ENFORCEMENT

Sec. 401. Decrease in amount of child support arrearage triggering 
passport denial.
Sec. 402. Use of tax refund intercept program to collect past-due child 
support on behalf of children who are not minors.
Sec. 403. Garnishment of compensation paid to veterans for service-
connected disabilities in order to enforce child support obligations.

                      TITLE V--FATHERHOOD PROGRAMS

                  Subtitle A--Fatherhood Grant Program

Sec. 501. Fatherhood grants.

        Subtitle B--Fatherhood Projects of National Significance

Sec. 511. Fatherhood projects of national significance.

                        TITLE VI--MISCELLANEOUS

Sec. 601. Change dates for abstinence evaluation.
Sec. 602. Report on undistributed child support payments.
Sec. 603. Use of new hire information to assist in administration of 
unemployment compensation programs.
Sec. 604. Immigration provisions.
Sec. 605. Correction of errors in conforming amendments in the Welfare-
To-Work and Child Support Amendments of 1999.
Sec. 606. Elimination of set-aside of welfare-to-work funds for 
successful performance bonus.
Sec. 607. Increase in payment rate to States for expenditures for short 
term training of staff of certain child welfare agencies.

                       TITLE VII--EFFECTIVE DATE

Sec. 701. Effective date.

                 TITLE I--DISTRIBUTION OF CHILD SUPPORT

SEC. 101. DISTRIBUTION OF CHILD SUPPORT COLLECTED BY STATES ON BEHALF 
                    OF CHILDREN RECEIVING CERTAIN WELFARE BENEFITS.

  (a) Modification of Rule Requiring Assignment of Support Rights as a 
Condition of Receiving TANF.--Section 408(a)(3) of the Social Security 
Act (42 U.S.C. 608(a)(3)) is amended to read as follows:
          ``(3) No assistance for families not assigning certain 
        support rights to the state.--A State to which a grant is made 
        under section 403 shall require, as a condition of providing 
        assistance to a family under the State program funded under 
        this part, that a member of the family assign to the State any 
        rights the family member may have (on behalf of the family 
        member or of any other person for whom the family member has 
        applied for or is receiving such assistance) to support from 
        any other person, not exceeding the total amount of assistance 
        so provided to the family, which accrues during the period that 
        the family receives assistance under the program.''.
  (b) Increasing Child Support Payments to Families and Simplifying 
Child Support Distribution Rules.--
          (1) Distribution rules.--
                  (A) In general.--Section 457(a) of such Act (42 
                U.S.C. 657(a)) is amended to read as follows:
  ``(a) In General.--Subject to subsections (d) and (e), the amounts 
collected on behalf of a family as support by a State pursuant to a 
plan approved under this part shall be distributed as follows:
          ``(1) Families receiving assistance.--In the case of a family 
        receiving assistance from the State, the State shall--
                  ``(A) pay to the Federal Government the Federal share 
                of the amount collected, subject to paragraph (3)(A);
                  ``(B) retain, or pay to the family, the State share 
                of the amount collected, subject to paragraph (3)(B); 
                and
                  ``(C) pay to the family any remaining amount.
          ``(2) Families that formerly received assistance.--In the 
        case of a family that formerly received assistance from the 
        State:
                  ``(A) Current support.--To the extent that the amount 
                collected does not exceed the current support amount, 
                the State shall pay the amount to the family.
                  ``(B) Arrearages.--To the extent that the amount 
                collected exceeds the current support amount, the 
                State--
                          ``(i) shall first pay to the family the 
                        excess amount, to the extent necessary to 
                        satisfy support arrearages not assigned 
                        pursuant to section 408(a)(3);
                          ``(ii) if the amount collected exceeds the 
                        amount required to be paid to the family under 
                        clause (i), shall--
                                  ``(I) pay to the Federal Government, 
                                the Federal share of the excess amount 
                                described in this clause, subject to 
                                paragraph (3)(A); and
                                  ``(II) retain, or pay to the family, 
                                the State share of the excess amount 
                                described in this clause, subject to 
                                paragraph (3)(B); and
                          ``(iii) shall pay to the family any remaining 
                        amount.
          ``(3) Limitations.--
                  ``(A) Federal reimbursements.--The total of the 
                amounts paid by the State to the Federal Government 
                under paragraphs (1) and (2) of this subsection with 
                respect to a family shall not exceed the Federal share 
                of the amount assigned with respect to the family 
                pursuant to section 408(a)(3).
                  ``(B) State reimbursements.--The total of the amounts 
                retained by the State under paragraphs (1) and (2) of 
                this subsection with respect to a family shall not 
                exceed the State share of the amount assigned with 
                respect to the family pursuant to section 408(a)(3).
          ``(4) Families that never received assistance.--In the case 
        of any other family, the State shall pay the amount collected 
        to the family.
          ``(5) Families under certain agreements.--Notwithstanding 
        paragraphs (1) through (4), in the case of an amount collected 
        for a family in accordance with a cooperative agreement under 
        section 454(33), the State shall distribute the amount 
        collected pursuant to the terms of the agreement.
          ``(6) State financing options.--To the extent that the State 
        share of the amount payable to a family for a month pursuant to 
        paragraph (2)(B) of this subsection exceeds the amount that the 
        State estimates (under procedures approved by the Secretary) 
        would have been payable to the family for the month pursuant to 
        former section 457(a)(2) (as in effect for the State 
        immediately before the date this subsection first applies to 
        the State) if such former section had remained in effect, the 
        State may elect to use the grant made to the State under 
        section 403(a) to pay the amount, or to have the payment 
        considered a qualified State expenditure for purposes of 
        section 409(a)(7), but not both.''.
                  (B) Approval of estimation procedures.--Not later 
                than October 1, 2001, the Secretary of Health and Human 
                Services, in consultation with the States (as defined 
                for purposes of part D of title IV of the Social 
                Security Act), shall establish the procedures to be 
                used to make the estimate described in section 
                457(a)(6) of such Act.
          (2) Current support amount defined.--Section 457(c) of such 
        Act (42 U.S.C. 657(c)) is amended by adding at the end the 
        following:
          ``(5) Current support amount.--The term `current support 
        amount' means, with respect to amounts collected as support on 
        behalf of a family, the amount designated as the monthly 
        support obligation of the noncustodial parent in the order 
        requiring the support.''.
  (c) Ban on Recovery of Medicaid Costs for Certain Births.--Section 
454 of such Act (42 U.S.C. 654) is amended--
          (1) by striking ``and'' at the end of paragraph (32);
          (2) by striking the period at the end of paragraph (33) and 
        inserting ``; and''; and
          (3) by inserting after paragraph (33) the following:
          ``(34) provide that the State shall not use the State program 
        operated under this part to collect any amount owed to the 
        State by reason of costs incurred under the State plan approved 
        under title XIX for the birth of a child for whom support 
        rights have been assigned pursuant to section 408(a)(3), 
        471(a)(17), or 1912.''.
  (d) Conforming Amendments.--
          (1) Section 409(a)(7)(B)(i)(I)(aa) of such Act (42 U.S.C. 
        609(a)(7)(B)(i)(I)(aa)) is amended by striking ``457(a)(1)(B)'' 
        and inserting ``457(a)(1)''.
          (2) Section 404(a) of such Act (42 U.S.C. 604(a)) is 
        amended--
                  (A) by striking ``or'' at the end of paragraph (1);
                  (B) by striking the period at the end of paragraph 
                (2) and inserting ``; or''; and
                  (C) by adding at the end the following:
          ``(3) to fund payment of an amount pursuant to section 
        457(a)(2)(B)(i), but only to the extent that the State properly 
        elects under section 457(a)(6) to use the grant to fund the 
        payment.''.
          (3) Section 409(a)(7)(B)(i) of such Act (42 U.S.C. 
        609(a)(7)(B)(i)) is amended by adding at the end the following:
                                  ``(V) Portions of certain child 
                                support payments collected on behalf of 
                                and distributed to families no longer 
                                receiving assistance.--Any amount paid 
                                by a State pursuant to section 
                                457(a)(2)(B)(i), but only to the extent 
                                that the State properly elects under 
                                section 457(a)(6) to have the payment 
                                considered a qualified State 
                                expenditure.''.
  (e) Effective Date.--
          (1) In general.--The amendments made by this section shall 
        take effect on October 1, 2005, and shall apply to payments 
        under parts A and D of title IV of the Social Security Act for 
        calendar quarters beginning on or after such date, and without 
        regard to whether regulations to implement such amendments (in 
        the case of State programs operated under such part D) are 
        promulgated by such date.
          (2) State option to accelerate effective date.--In addition, 
        a State may elect to have the amendments made by this section 
        apply to the State and to amounts collected by the State, on 
        and after such date as the State may select that is after the 
        date of the enactment of this Act and before October 1, 2005.

        TITLE II--REVIEW AND ADJUSTMENT OF CHILD SUPPORT ORDERS

SEC. 201. MANDATORY REVIEW AND MODIFICATION OF CHILD SUPPORT ORDERS FOR 
                    TANF RECIPIENTS.

  (a) Review Every 3 Years.--Section 466(a)(10)(A)(i) of the Social 
Security Act (42 U.S.C. 666(a)(10)(A)(i)) is amended--
          (1) by striking ``or,'' and inserting ``or''; and
          (2) by striking ``upon the request of the State agency under 
        the State plan or of either parent,''.
  (b) Review Upon Leaving TANF.--
          (1) Notice of certain families leaving tanf.--Section 402(a) 
        of such Act (42 U.S.C. 602(a)) is amended by adding at the end 
        the following:
          ``(8) Certification that the child support enforcement 
        program will be provided notice of certain families leaving 
        tanf program.--A certification by the chief executive officer 
        of the State that the State has established procedures to 
        ensure that the State agency administering the child support 
        enforcement program under the State plan approved under part D 
        will be provided notice of the impending discontinuation of 
        assistance to an individual under the State program funded 
        under this part if the individual has custody of a child whose 
        other parent is alive and not living at home with the child.''.
          (2) Review.--Section 466(a)(10) of such Act (42 U.S.C. 
        666(a)(10)) is amended--
                  (A) in the paragraph heading, by striking ``upon 
                request'';
                  (B) in subparagraph (C), by striking ``this 
                paragraph'' and inserting ``subparagraph (A) or (B)''; 
                and
                  (C) by adding at the end the following:
                  ``(D) Review upon leaving tanf.--On receipt of a 
                notice issued pursuant to section 402(a)(8), the State 
                child support enforcement agency shall--
                          ``(i) examine the case file involved;
                          ``(ii) determine what actions (if any) are 
                        needed to locate any noncustodial parent, 
                        establish paternity or a support order, or 
                        enforce a support order in the case;
                          ``(iii) immediately take the actions; and
                          ``(iv) if there is a support order in the 
                        case which the State has not reviewed during 
                        the 1-year period ending with receipt of the 
                        notice, notwithstanding subparagraph (B), 
                        review and, if appropriate, adjust the order in 
                        accordance with subparagraph (A).''.

   TITLE III--DEMONSTRATIONS OF EXPANDED INFORMATION AND ENFORCEMENT

SEC. 301. GUIDELINES FOR INVOLVEMENT OF PUBLIC NON-IV-D CHILD SUPPORT 
                    ENFORCEMENT AGENCIES IN CHILD SUPPORT ENFORCEMENT.

  (a) In General.--The Secretary, in consultation with States, local 
governments, and individuals or companies knowledgable about involving 
public non-IV-D child support enforcement agencies in child support 
enforcement, shall develop recommendations which address the 
participation of public non-IV-D child support enforcement agencies in 
the establishment and enforcement of child support obligations. The 
matters addressed by the recommendations shall include substantive and 
procedural rules which should be followed with respect to privacy 
safeguards, data security, due process rights, administrative 
compatibility with State and Federal automated systems, eligibility 
requirements (such as registration, licensing, and posting of bonds) 
for access to information and use of enforcement mechanisms, recovery 
of costs by charging fees, penalties for violations of the rules, 
treatment of collections for purposes of section 458 of such Act, and 
avoidance of duplication of effort.
  (b) Definitions.--In this title:
          (1) Child support.--The term ``child support'' has the 
        meaning given in section 459(i)(2) of the Social Security Act.
          (2) Public non-iv-d child support enforcement agency.--The 
        term ``public non-IV-D child support enforcement agency'' means 
        an agency, of a political subdivision of a State, which is 
        principally responsible for the operation of a child support 
        registry or for the establishment or enforcement of an 
        obligation to pay child support other than pursuant to the 
        State plan approved under part D of title IV of such Act, or a 
        clerk of court office of a political subdivision of a State.
          (3) Secretary.--The term ``Secretary'' means the Secretary of 
        Health and Human Services.
          (4) State.--The term ``State'' shall have the meaning given 
        in section 1101(a)(1) of the Social Security Act for purposes 
        of part D of title IV of such Act.

SEC. 302. DEMONSTRATIONS INVOLVING ESTABLISHMENT AND ENFORCEMENT OF 
                    CHILD SUPPORT OBLIGATIONS BY PUBLIC NON-IV-D CHILD 
                    SUPPORT ENFORCEMENT AGENCIES.

  (a) Purpose.--The purpose of this section is to determine the extent 
to which public non-IV-D child support enforcement agencies may 
contribute effectively to the establishment and enforcement of child 
support obligations.
  (b) Applications.--
          (1) Consideration.--The Secretary shall consider all 
        applications received from States desiring to conduct 
        demonstration projects under this section.
          (2) Preferences.--In considering which applications to 
        approve under this section, the Secretary shall give preference 
        to applications submitted by States that have in effect laws 
        and procedures that provide authority for public non-IV-D child 
        support enforcement agencies to have access to child support 
        information or enforcement mechanisms available to the State.
          (3) Approval.--
                  (A) Timing; limitation on number of projects.--On 
                July 1, 2002, the Secretary may approve not more than 
                10 applications for projects providing for the 
                participation of a public non-IV-D child support 
                enforcement agency in the establishment and enforcement 
                of child support obligations, and, if the Secretary 
                receives at least 5 such applications that meet such 
                requirements as the Secretary may establish, shall 
                approve not less than 5 such applications.
                  (B) Requirements.--The Secretary may not approve an 
                application for a project unless--
                          (i) the applicant and the Secretary have 
                        entered into a written agreement which 
                        addresses at a minimum, privacy safeguards, 
                        data security, due process rights, automated 
                        systems, liability, oversight, and fees, and 
                        the applicant has made a commitment to conduct 
                        the project in accordance with the written 
                        agreement and such other requirements as the 
                        Secretary may establish;
                          (ii) the project includes a research plan 
                        (but such plan shall not be required to use 
                        random assignment) that is focused on assessing 
                        the costs and benefits of the project; and
                          (iii) the project appears likely to 
                        contribute significantly to the achievement of 
                        the purpose of this title.
  (c) Demonstration Authority.--On approval of an application submitted 
by a State under this section--
          (1) the State agency responsible for administering the State 
        plan under part D of title IV of the Social Security Act may, 
        subject to the privacy safeguards of section 454(26) of such 
        Act, provide to any public non-IV-D child support enforcement 
        agency participating in the demonstration project all 
        information in the State Directory of New Hires and any 
        information obtained through information comparisons under 
        section 453(j)(3) of such Act about an individual with respect 
        to whom the public non-IV-D agency is seeking to establish or 
        enforce a child support obligation, if the public non-IV-D 
        agency meets such requirements as the State may establish and 
        has entered into an agreement with the State under which the 
        public non-IV-D agency has made a binding commitment to carry 
        out establishment and enforcement activities with respect to 
        the child support obligation subject to the same data security, 
        privacy protection, and due process requirements applicable to 
        the State agency and in accordance with procedures approved by 
        the head of the State agency;
          (2) the State agency may charge and collect fees from any 
        such public non-IV-D agency to recover costs incurred by the 
        State agency in providing information and services to the 
        public non-IV-D agency under the demonstration project;
          (3) if a public non-IV-D child support enforcement agency has 
        agreed to collect past-due support (as defined in section 
        464(c) of such Act) owed by a named individual, and the State 
        agency has submitted a notice to the Secretary of the Treasury 
        pursuant to section 464 of such Act on behalf of the public 
        non-IV-D agency, then the Secretary of the Treasury shall 
        consider the State agency to have agreed to collect such 
        support for purposes of such section 464, and the State agency 
        may collect from the public non-IV-D agency any fee which the 
        State is required to pay for the cost of applying the offset 
        procedure in the case;
          (4) for so long as a public non-IV-D child support 
        enforcement agency is participating in the demonstration 
        project, the public non-IV-D agency shall be considered part of 
        the State agency for purposes of section 469A of such Act; and
          (5) for so long as a public non-IV-D child support 
        enforcement agency is participating in the demonstration 
        project, the public non-IV-D agency shall be considered part of 
        the State agency for purposes of section 303(e) of such Act but 
        only with respect to any child support obligation that the 
        public non-IV-D agency has agreed to collect.
  (d) Waiver Authority.--The Secretary may waive or vary the 
applicability of any provision of section 303(e), 454(31), 464, 
466(a)(7), 466(a)(17), and 469A of the Social Security Act relating to 
information-sharing to the extent necessary to enable the conduct of 
demonstration projects under this section, subject to the preservation 
of the data security, privacy protection, and due process requirements 
of part D of title IV of such Act.
  (e) Federal Audit.--
          (1) In general.--The Comptroller General of the United States 
        shall conduct an audit of the demonstration projects conducted 
        under this section for the purpose of examining and evaluating 
        the manner in which information and enforcement tools are used 
        by the public non-IV-D child support enforcement agencies 
        participating in the projects.
          (2) Report to the congress.--
                  (A) In general.--The Comptroller General of the 
                United States shall submit to the Congress a report on 
                the audit required by paragraph (1).
                  (B) Timing.--The report required by subparagraph (A) 
                shall be so submitted not later than October 1, 2004.
  (f) Secretarial Report to the Congress.--
          (1) In general.--The Secretary shall submit to the Congress a 
        report on the demonstration projects conducted under this 
        section, which shall include the results of any research or 
        evaluation conducted pursuant to this title, and shall include 
        policy recommendations regarding the establishment and 
        enforcement of child support obligations by the agencies 
        involved.
          (2) Timing.--The report required by paragraph (1) shall be so 
        submitted not later than October 1, 2005.

SEC. 303. GAO REPORT TO CONGRESS ON PRIVATE CHILD SUPPORT ENFORCEMENT 
                    AGENCIES.

  (a) In General.--Not later than October 1, 2001, the Comptroller 
General of the United States shall submit to the Congress a report on 
the activities of private child support enforcement agencies that shall 
be designed to help the Congress determine whether the agencies are 
providing a needed service in a fair manner using accepted debt 
collection practices and at a reasonable fee.
  (b) Matters To Be Addressed.--Among the matters addressed by the 
report required by subsection (a) shall be the following:
          (1) The number of private child support enforcement agencies.
          (2) The types of debt collection activities conducted by the 
        private agencies.
          (3) The fees charged by the private agencies.
          (4) The methods used by the private agencies to collect fees 
        from custodial parents.
          (5) The nature and degree of cooperation the private agencies 
        receive from State agencies responsible for administering State 
        plans under part D of title IV of the Social Security Act.
          (6) The extent to which the conduct of the private agencies 
        is subject to State or Federal regulation, and if so, the 
        extent to which the regulations are effectively enforced.
          (7) The amount of child support owed but uncollected and 
        changes in this amount in recent years.
          (8) The average period of time required for the completion of 
        successful enforcement actions yielding collections of past-due 
        child support by both the child support enforcement programs 
        operated pursuant to State plans approved under part D of title 
        IV of the Social Security Act and, to the extent known, by 
        private child support enforcement agencies.
          (9) The types of Federal and State child support enforcement 
        remedies and resources currently available to private child 
        support enforcement agencies, and the types of such remedies 
        and resources now restricted to use by State agencies 
        administering State plans referred to in paragraph (8).
  (c) Private Child Support Enforcement Agency Defined.--In this 
section, the term ``private child support enforcement agency'' means a 
person or any other non-public entity which seeks to establish or 
enforce an obligation to pay child support (as defined in section 
459(i)(2) of the Social Security Act).

SEC. 304. EFFECTIVE DATE.

  This title shall take effect on the date of the enactment of this 
Act.

                     TITLE IV--EXPANDED ENFORCEMENT

SEC. 401. DECREASE IN AMOUNT OF CHILD SUPPORT ARREARAGE TRIGGERING 
                    PASSPORT DENIAL.

  Section 452(k) of the Social Security Act (42 U.S.C. 652(k)) is 
amended by striking ``$5,000'' and inserting ``$2,500''.

SEC. 402. USE OF TAX REFUND INTERCEPT PROGRAM TO COLLECT PAST-DUE CHILD 
                    SUPPORT ON BEHALF OF CHILDREN WHO ARE NOT MINORS.

  Section 464 of the Social Security Act (42 U.S.C. 664) is amended--
          (1) in subsection (a)(2)(A), by striking ``(as that term is 
        defined for purposes of this paragraph under subsection (c))''; 
        and
          (2) in subsection (c)--
                  (A) in paragraph (1)--
                          (i) by striking ``(1) Except as provided in 
                        paragraph (2), as used in'' and inserting 
                        ``In''; and
                          (ii) by inserting ``(whether or not a 
                        minor)'' after ``a child'' each place it 
                        appears; and
                  (B) by striking paragraphs (2) and (3).

SEC. 403. GARNISHMENT OF COMPENSATION PAID TO VETERANS FOR SERVICE-
                    CONNECTED DISABILITIES IN ORDER TO ENFORCE CHILD 
                    SUPPORT OBLIGATIONS.

  Section 459(h) of the Social Security Act (42 U.S.C. 659(h)) is 
amended--
          (1) in paragraph (1)(A)(ii)(V), by striking all that follows 
        ``Armed Forces'' and inserting a semicolon; and
          (2) by adding at the end the following:
          ``(3) Limitations with respect to compensation paid to 
        veterans for service-connected disabilities.--Notwithstanding 
        any other provision of this section:
                  ``(A) Compensation described in paragraph 
                (1)(A)(ii)(V) shall not be subject to withholding 
                pursuant to this section--
                          ``(i) for payment of alimony; or
                          ``(ii) for payment of child support if the 
                        individual is fewer than 60 days in arrears in 
                        payment of the support.
                  ``(B) Not more than 50 percent of any payment of 
                compensation described in paragraph (1)(A)(ii)(V) may 
                be withheld pursuant to this section.''.

                      TITLE V--FATHERHOOD PROGRAMS

                  Subtitle A--Fatherhood Grant Program

SEC. 501. FATHERHOOD GRANTS.

  (a) In General.--Part A of title IV of the Social Security Act (42 
U.S.C. 601-619) is amended by inserting after section 403 the 
following:

``SEC. 403A. FATHERHOOD PROGRAMS.

  ``(a) Purpose.--The purpose of this section is to make grants 
available to public and private entities for projects designed to--
          ``(1) promote marriage through counseling, mentoring, 
        disseminating information about the advantages of marriage, 
        enhancing relationship skills, teaching how to control 
        aggressive behavior, disseminating information on the causes 
        and treatment of domestic violence and child abuse, and other 
        methods;
          ``(2) promote successful parenting through counseling, 
        mentoring, disseminating information about good parenting 
        practices including prepregnancy, family planning, training 
        parents in money management, encouraging child support 
        payments, encouraging regular visitation between fathers and 
        their children, and other methods; and
          ``(3) help fathers and their families avoid or leave cash 
        welfare provided by the program under part A and improve their 
        economic status by providing work first services, job search, 
        job training, subsidized employment, career-advancing 
        education, job retention, job enhancement, and other methods.
  ``(b) Fatherhood Grants.--
          ``(1) Applications.--An entity desiring a grant to carry out 
        a project described in subsection (a) may submit to the 
        Secretary an application that contains the following:
                  ``(A) A description of the project and how the 
                project will be carried out.
                  ``(B) A description of how the project will address 
                all three of the purposes of this section.
                  ``(C) A written commitment by the entity that the 
                project will allow an individual to participate in the 
                project only if the individual is--
                          ``(i) a father of a child who is, or within 
                        the past 24 months has been, a recipient of 
                        assistance or services under a State program 
                        funded under this part;
                          ``(ii) a father, including an expectant or 
                        married father, whose income (net of court-
                        ordered child support) is less than 150 percent 
                        of the poverty line (as defined in section 
                        673(2) of the Omnibus Budget Reconciliation Act 
                        of 1981, including any revision required by 
                        such section, applicable to a family of the 
                        size involved); or
                          ``(iii) a parent referred to in paragraph 
                        (3)(A)(iii).
                  ``(D) A written commitment by the entity that the 
                entity will provide for the project, from funds 
                obtained from non-Federal sources, amounts (including 
                in-kind contributions) equal in value to--
                          ``(i) 20 percent of the amount of any grant 
                        made to the entity under this subsection; or
                          ``(ii) such lesser percentage as the 
                        Secretary deems appropriate (which shall be not 
                        less than 10 percent) of such amount, if the 
                        application demonstrates that there are 
                        circumstances that limit the ability of the 
                        entity to raise funds or obtain resources.
                  ``(E) A written commitment by the entity that the 
                entity will make available to each individual 
                participating in the project education about the causes 
                of domestic violence and child abuse and local programs 
                to prevent and treat abuse, education about alcohol, 
                tobacco, and other drugs and the effects of abusing 
                such substances, and information about HIV/AIDS and its 
                transmission.
          ``(2) Consideration of applications by interagency panel.--
                  ``(A) Establishment.--There is established a panel to 
                be known as the `Fatherhood Grants Recommendations 
                Panel' (in this subparagraph referred to as the 
                `Panel').
                  ``(B) Membership.--
                          ``(i) In general.--The Panel shall be 
                        composed of 10 members, as follows:
                                  ``(I) Two members of the Panel shall 
                                be appointed by the Secretary.
                                  ``(II) Two members of the Panel shall 
                                be appointed by the Secretary of Labor.
                                  ``(III) Two members of the Panel 
                                shall be appointed by the Chairman of 
                                the Committee on Ways and Means of the 
                                House of Representatives.
                                  ``(IV) One member of the Panel shall 
                                be appointed by the ranking minority 
                                member of the Committee on Ways and 
                                Means of the House of Representatives.
                                  ``(V) Two members of the Panel shall 
                                be appointed by the Chairman of the 
                                Committee on Finance of the Senate.
                                  ``(VI) One member of the Panel shall 
                                be appointed by the ranking minority 
                                member of the Committee on Finance of 
                                the Senate.
                          ``(ii) Qualifications.--An individual shall 
                        not be eligible to serve on the Panel unless 
                        the individual has experience in programs for 
                        fathers, programs for the poor, programs for 
                        children, program administration, program 
                        research, or programs of domestic violence 
                        prevention and treatment.
                          ``(iii) Conflicts of interest.--An individual 
                        shall not be eligible to serve on the Panel if 
                        such service would pose a conflict of interest 
                        for the individual.
                          ``(iv) Timing of appointments.--The 
                        appointment of members to the Panel shall be 
                        completed not later than April 1, 2001.
                  ``(C) Duties.--
                          ``(i) Review and make recommendations on 
                        project applications.--The Panel shall review 
                        all applications submitted pursuant to 
                        paragraph (1), and make recommendations to the 
                        Secretary regarding which applicants should be 
                        awarded grants under this subsection, with due 
                        regard for the provisions of paragraph (3), but 
                        shall not recommend that a project be awarded 
                        such a grant if the application describing the 
                        project does not attempt to meet the 
                        requirement of paragraph (1)(B).
                          ``(ii) Timing.--The Panel shall make such 
                        recommendations not later than October 1, 2001.
                  ``(D) Term of office.--Each member appointed to the 
                Panel shall serve for the life of the Panel.
                  ``(E) Prohibition on compensation.--Members of the 
                Panel may not receive pay, allowances, or benefits by 
                reason of their service on the Panel.
                  ``(F) Travel expenses.--Each member of the Panel 
                shall receive travel expenses, including per diem in 
                lieu of subsistence, in accordance with sections 5702 
                and 5703 of title 5, United States Code.
                  ``(G) Meetings.--The Panel shall meet as often as is 
                necessary to complete the business of the Panel.
                  ``(H) Chairperson.--The Chairperson of the Panel 
                shall be designated by the Secretary at the time of 
                appointment.
                  ``(I) Staff of federal agencies.--The Secretary may 
                detail any personnel of the Department of Health and 
                Human Services and the Secretary of Labor may detail 
                any personnel of the Department of Labor to the Panel 
                to assist the Panel in carrying out its duties under 
                this paragraph.
                  ``(J) Obtaining official data.--The Panel may secure 
                directly from any department or agency of the United 
                States information necessary to enable it to carry out 
                this paragraph. On request of the Chairperson of the 
                Panel, the head of the department or agency shall 
                furnish that information to the Panel.
                  ``(K) Mails.--The Panel may use the United States 
                mails in the same manner and under the same conditions 
                as other departments and agencies of the United States.
                  ``(L) Termination.--The Panel shall terminate on 
                October 1, 2001.
          ``(3) Rules governing grants.--
                  ``(A) Grant awards.--
                          ``(i) In general.--The Secretary shall award 
                        matching grants, on a competitive basis, among 
                        entities submitting applications therefor which 
                        meet the requirements of paragraph (1), in 
                        amounts that take into account the written 
                        commitments referred to in paragraph (1)(D).
                          ``(ii) Timing.--On October 1, 2001, the 
                        Secretary shall award not more than 
                        $140,000,000 in matching grants after 
                        considering the recommendations submitted 
                        pursuant to paragraph (2)(C)(i).
                          ``(iii) Nondiscrimination.--The provisions of 
                        this section shall be applied and administered 
                        so as to ensure that mothers, expectant 
                        mothers, and married mothers are eligible for 
                        benefits and services under projects awarded 
                        grants under this section on the same basis as 
                        fathers, expectant fathers, and married 
                        fathers.
                  ``(B) Preferences.--In determining which entities to 
                which to award grants under this subsection, the 
                Secretary shall give preference to an entity--
                          ``(i) to the extent that the application 
                        submitted by the entity describes actions that 
                        the entity will take that are designed to 
                        encourage or facilitate the payment of child 
                        support, including but not limited to--
                                  ``(I) obtaining a written commitment 
                                by the agency responsible for 
                                administering the State plan approved 
                                under part D for the State in which the 
                                project is to be carried out that the 
                                State will voluntarily cancel child 
                                support arrearages owed to the State by 
                                the father as a result of the father 
                                providing various supports to the 
                                family such as maintaining a regular 
                                child support payment schedule or 
                                living with his children (unless the 
                                father has been convicted of a crime 
                                involving domestic violence or child 
                                abuse);
                                  ``(II) obtaining a written commitment 
                                by the entity that the entity will help 
                                participating fathers who cooperate 
                                with the agency in improving their 
                                credit rating; and
                                  ``(III) helping fathers arrange and 
                                maintain a consistent schedule of 
                                visits with their children, unless it 
                                would be unsafe;
                          ``(ii) to the extent that the application 
                        includes written agreements of cooperation with 
                        other private and governmental agencies, 
                        including the State or local program funded 
                        under this part, the local Workforce Investment 
                        Board, the State or local program funded under 
                        part D, community-based domestic violence 
                        programs, and the State or local program funded 
                        under part E, which should include a 
                        description of the services each such agency 
                        will provide to fathers participating in the 
                        project described in the application;
                          ``(iii) to the extent that the application 
                        describes a project that will enroll a high 
                        percentage of project participants within 6 
                        months before or after the birth of the child; 
                        or
                          ``(iv) to the extent that the application 
                        sets forth clear and practical methods by which 
                        fathers will be recruited to participate in the 
                        project.
                  ``(C) Minimum percentage of recipients of grant funds 
                to be nongovernmental (including faith-based) 
                organizations.--Not less than 75 percent of the 
                entities awarded grants under this subsection in each 
                fiscal year (other than entities awarded such grants 
                pursuant to the preferences required by subparagraph 
                (B)) shall be awarded to--
                          ``(i) nongovernmental (including faith-based) 
                        organizations; or
                          ``(ii) governmental organizations that pass 
                        through to organizations referred to in clause 
                        (i) at least 50 percent of the amount of the 
                        grant.
                  ``(D) Diversity of projects.--
                          ``(i) In general.--In determining which 
                        entities to which to award grants under this 
                        subsection, the Secretary shall attempt to 
                        achieve a balance among entities of differing 
                        sizes, entities in differing geographic areas, 
                        entities in urban versus rural areas, and 
                        entities employing differing methods of 
                        achieving the purposes of this section.
                          ``(ii) Report to the congress.--Within 90 
                        days after each award of grants under 
                        subparagraph (A)(ii), the Secretary shall 
                        submit to the Committee on Ways and Means of 
                        the House of Representatives and the Committee 
                        on Finance of the Senate a brief report on the 
                        diversity of projectes selected to receive 
                        funds under the grant program. The report shall 
                        include a comparison of funding for projects 
                        located in urban areas, projects located in 
                        suburban areas, and projects located in rural 
                        areas.
                  ``(E) Payment of grant in four equal annual 
                installments.--During the fiscal year in which a grant 
                is awarded under this subsection and each of the 
                succeeding three fiscal years, the Secretary shall 
                provide to the entity awarded the grant an amount equal 
                to \1/4\ of the amount of the grant.
          ``(4) Use of funds.--
                  ``(A) In general.--Each entity to which a grant is 
                made under this section shall use grant funds provided 
                under this section in accordance with the application 
                requesting the grant, the requirements of this section, 
                and the regulations prescribed under this section, and 
                may use grant funds to support community-wide 
                initiatives to address the purposes of this section, 
                but may not use grant funds for court proceedings on 
                matters of child visitation or child custody or for 
                legislative advocacy.
                  ``(B) Nondisplacement.--
                          ``(i) In general.--An adult in a work 
                        activity described in section 407(d) which is 
                        funded, in whole or in part, by funds provided 
                        under this section shall not be employed or 
                        assigned--
                                  ``(I) when any other individual is on 
                                layoff from the same or any 
                                substantially equivalent job; or
                                  ``(II) if the employer has terminated 
                                the employment of any regular employee 
                                or otherwise caused an involuntary 
                                reduction of its workforce in order to 
                                fill the vacancy so created with such 
                                an adult.
                          ``(ii) Grievance procedure.--
                                  ``(I) In general.--Complaints 
                                alleging violations of clause (i) in a 
                                State may be resolved--
                                          ``(aa) if the State has 
                                        established a grievance 
                                        procedure under section 
                                        403(a)(5)(I)(iv), pursuant to 
                                        the grievance procedure; or
                                          ``(bb) otherwise, pursuant to 
                                        the grievance procedure 
                                        established by the State under 
                                        section 407(f)(3).
                                  ``(II) Forfeiture of grant if 
                                grievance procedure not available.--If 
                                a complaint referred to in subclause 
                                (I) is made against an entity to which 
                                a grant has been made under this 
                                section with respect to a project, and 
                                the complaint cannot be brought to, or 
                                cannot be resolved within 90 days after 
                                being brought, by a grievance procedure 
                                referred to in subclause (I), then the 
                                entity shall immediately return to the 
                                Secretary all funds provided to the 
                                entity under this section for the 
                                project, and the Secretary shall 
                                immediately rescind the grant.
                  ``(C) Rule of construction.--This section shall not 
                be construed to require the participation of a father 
                in a project funded under this section to be 
                discontinued by the project on the basis of changed 
                economic circumstances of the father.
                  ``(D) Rule of construction on marriage.--This section 
                shall not be construed to authorize the Secretary to 
                define marriage for purposes of this section.
                  ``(E) Penalty for misuse of grant funds.--If the 
                Secretary determines that an entity to which a grant is 
                made under this subsection has used any amount of the 
                grant in violation of subparagraph (A), the Secretary 
                shall require the entity to remit to the Secretary an 
                amount equal to the amount so used, plus all remaining 
                grant funds, and the entity shall thereafter be 
                ineligible for any grant under this subsection.
                  ``(F) Remittance of unused grant funds.--Each entity 
                to which a grant is awarded under this subsection shall 
                remit to the Secretary all funds paid under the grant 
                that remain at the end of the fifth fiscal year ending 
                after the initial grant award.
          ``(5) Authority of agencies to exchange information.--Each 
        agency administering a program funded under this part or a 
        State plan approved under part D may share the name, address, 
        telephone number, and identifying case number information in 
        the State program funded under this part, of fathers for 
        purposes of assisting in determining the eligibility of fathers 
        to participate in projects receiving grants under this section, 
        and in contacting fathers potentially eligible to participate 
        in the projects, subject to all applicable privacy laws.
          ``(6) Evaluation.--The Secretary, in consultation with the 
        Secretary of Labor, shall, directly or by grant, contract, or 
        interagency agreement, conduct an evaluation of projects funded 
        under this section (other than under subsection (c)(1)). The 
        evaluation shall assess, among other outcomes selected by the 
        Secretary, effects of the projects on marriage, parenting, 
        employment, earnings, payment of child support, and incidence 
        of domestic violence and child abuse. In selecting projects for 
        the evaluation, the Secretary should include projects that, in 
        the Secretary's judgment, are most likely to impact the matters 
        described in the purposes of this section. In conducting the 
        evaluation, random assignment should be used wherever possible.
          ``(7) Regulations.--The Secretary shall prescribe such 
        regulations as may be necessary to carry out this subsection.
          ``(8) Limitation on applicability of other provisions of this 
        part.--Sections 404 through 410 shall not apply to this section 
        or to amounts paid under this section, and shall not be applied 
        to an entity solely by reason of receipt of funds pursuant to 
        this section. A project shall not be considered a State program 
        funded under this part solely by reason of receipt of funds 
        paid under this section.
          ``(9) Funding.--
                  ``(A) In general.--
                          ``(i) Interagency panel.--Of the amounts made 
                        available pursuant to section 403(a)(1)(E) to 
                        carry out this section for fiscal year 2001, a 
                        total of $150,000 shall be made available for 
                        the interagency panel established by paragraph 
                        (2) of this subsection.
                          ``(ii) Grants.--Of the amounts made available 
                        pursuant to section 403(a)(1)(E) to carry out 
                        this section for fiscal years 2002 through 
                        2005, a total of $140,000,000 shall be made 
                        available for grants under this subsection.
                          ``(iii) Evaluation.--Of the amounts made 
                        available pursuant to section 403(a)(1)(E) to 
                        carry out this section for fiscal years 2001 
                        through 2006, a total of $6,000,000 shall be 
                        made available for the evaluation required by 
                        paragraph (6) of this subsection.
                  ``(B) Availability.--
                          ``(i) Grant funds.--The amounts made 
                        available pursuant to subparagraph (A)(ii) 
                        shall remain available until the end of fiscal 
                        year 2006.
                          ``(ii) Evaluation funds.--The amounts made 
                        available pursuant to subparagraph (A)(iii) 
                        shall remain available until the end of fiscal 
                        year 2008.''.
  (b) Funding.--Section 403(a)(1)(E) of such Act (42 U.S.C. 
603(a)(1)(E)) is amended by inserting ``, and for fiscal years 2001 
through 2007, such sums as are necessary to carry out section 403A'' 
before the period.
  (c) Applicability of Charitable Choice Provisions of Welfare 
Reform.--Section 104 of the Personal Responsibility and Work 
Opportunity Reconciliation Act of 1996 (42 U.S.C. 604a) is amended by 
adding at the end the following:
  ``(l) Notwithstanding the preceding provisions of this section, this 
section shall apply to any entity to which funds have been provided 
under section 403A of the Social Security Act in the same manner in 
which this section applies to States, and, for purposes of this 
section, any project for which such funds are so provided shall be 
considered a program described in subsection (a)(2).''.

        Subtitle B--Fatherhood Projects of National Significance

SEC. 511. FATHERHOOD PROJECTS OF NATIONAL SIGNIFICANCE.

  Section 403A of the Social Security Act, as added by subtitle A of 
this title, is amended by adding at the end the following:
  ``(c) Fatherhood Projects of National Significance.--
          ``(1) National clearinghouse.--The Secretary shall award a 
        $5,000,000 grant to a nationally recognized, nonprofit 
        fatherhood promotion organization with at least 4 years of 
        experience in designing and disseminating a national public 
        education campaign, including the production and successful 
        placement of television, radio, and print public service 
        announcements which promote the importance of responsible 
        fatherhood, and with at least 4 years experience providing 
        consultation and training to community-based organizations 
        interested in implementing fatherhood outreach, support, or 
        skill development programs with an emphasis on promoting 
        married fatherhood as the ideal, to--
                  ``(A) develop, promote, and distribute to interested 
                States, local governments, public agencies, and private 
                nonprofit organizations, including charitable and 
                religious organizations, a media campaign that 
                encourages the appropriate involvement of both parents 
                in the life of any child of the parents, and encourages 
                such organizations to develope or sponsor programs that 
                specifically address the issue of responsible 
                fatherhood and the advantages conferred on children by 
                marriage;
                  ``(B) develop a national clearinghouse to assist 
                States, communities, and private entities in efforts to 
                promote and support marriage and responsible fatherhood 
                by collecting, evaluating, and making available 
                (through the Internet and by other means) to all 
                interested parties, information regarding media 
                campaigns and fatherhood programs;
                  ``(C) develop and distribute materials that are for 
                use by entities described in subparagraph (A) or (B) 
                and that help young adults manage their money, develop 
                the knowledge and skills needed to promote successful 
                marriages, plan for future expenditures and 
                investments, and plan for retirement;
                  ``(D) develop and distribute materials that are for 
                use by entities described in subparagraphs (A) and (B) 
                and that list all the sources of public support for 
                education and training that are available to young 
                adults, including government spending programs as well 
                as benefits under Federal and State tax laws.
          ``(2) Multicity fatherhood projects.--
                  ``(A) In general.--The Secretary shall award a 
                $5,000,000 grant to each of two nationally recognized 
                nonprofit fatherhood promotion organizations which meet 
                the requirements of subparagraph (B), at least one of 
                which organizations meets the requirement of 
                subparagraph (C).
                  ``(B) Requirements.--The requirements of this 
                subparagraph are the following:
                          ``(i) The organization must have several 
                        years of experience in designing and conducting 
                        programs that meet the purposes described in 
                        paragraph (1).
                          ``(ii) The organization must have experience 
                        in simultaneously conducting such programs in 
                        more than one major metropolitan area and in 
                        coordinating such programs with local 
                        government agencies and private, nonprofit 
                        agencies, including State or local agencies 
                        responsible for conducting the program under 
                        part D and Workforce Investment Boards.
                          ``(iii) The organization must submit to the 
                        Secretary an application that meets all the 
                        conditions applicable to the organization under 
                        this section and that provides for projects to 
                        be conducted in three major metropolitan areas.
                  ``(C) Use of married couples to deliver services in 
                the inner city.--The requirement of this subparagraph 
                is that the organization has extensive experience in 
                using married couples to deliver program services in 
                the inner city.
          ``(3) Payment of grants in four equal annual installments.--
        During each of fiscal years 2002 through 2005, the Secretary 
        shall provide to each entity awarded a grant under this 
        subsection an amount equal to \1/4\ of the amount of the grant.
          ``(4) Funding.--
                  ``(A) In general.--Of the amounts made available 
                pursuant to section 403(a)(1)(E) to carry out this 
                section, $3,750,000 shall be made available for grants 
                under this subsection for each of fiscal years 2002 
                through 2005.
                  ``(B) Availability.--The amounts made available 
                pursuant to subparagraph (A) shall remain available 
                until the end of fiscal year 2005.''.

                        TITLE VI--MISCELLANEOUS

SEC. 601. CHANGE DATES FOR ABSTINENCE EVALUATION.

  (a) In General.--Section 403(a)(5)(G)(iii) of the Social Security Act 
(42 U.S.C. 603(a)(5)(G)(iii)), as amended by section 606(a) of this 
Act, is amended by striking ``2001'' and inserting ``2005''.
  (b) Interim Report Required.--Section 403(a)(5)(G) of such Act (42 
U.S.C. 603(a)(5)(G)), as so amended, is amended by adding at the end 
the following:
                          ``(iv) Interim report.--Not later than 
                        January 1, 2002, the Secretary shall submit to 
                        the Congress a interim report on the 
                        evaluations referred to in clause (i).''.

SEC. 602. REPORT ON UNDISTRIBUTED CHILD SUPPORT PAYMENTS.

  Not later than 6 months after the date of the enactment of this Act, 
the Secretary of Health and Human Services shall submit to the 
Committee on Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate a report on the procedures that the 
States use generally to locate custodial parents for whom child support 
has been collected but not yet distributed due to a change in address. 
The report shall include an estimate of the total amount of such 
undistributed child support and the average length of time it takes for 
such child support to be distributed. The Secretary shall include in 
the report recommendations as to whether additional procedures should 
be established at the State or Federal level to expedite the payment of 
undistributed child support.

SEC. 603. USE OF NEW HIRE INFORMATION TO ASSIST IN ADMINISTRATION OF 
                    UNEMPLOYMENT COMPENSATION PROGRAMS.

  (a) In General.--Section 453(j) of the Social Security Act (42 U.S.C. 
653(j)) is amended by adding at the end the following:
          ``(7) Information comparisons and disclosure to assist in 
        administration of unemployment compensation programs.--
                  ``(A) In general.--If a State agency responsible for 
                the administration of an unemployment compensation 
                program under Federal or State law transmits to the 
                Secretary the name and social security account number 
                of an individual, the Secretary shall, if the 
                information in the National Directory of New Hires 
                indicates that the individual may be employed, disclose 
                to the State agency the name, address, and employer 
                identification number of any putative employer of the 
                individual, subject to this paragraph.
                  ``(B) Condition on disclosure.--The Secretary shall 
                make a disclosure under subparagraph (A) only to the 
                extent that the Secretary determines that the 
                disclosure would not interfere with the effective 
                operation of the program under this part.
                  ``(C) Use of information.--A State agency may use 
                information provided under this paragraph only for 
                purposes of administering a program referred to in 
                subparagraph (A).''.
  (b) Effective Date.--The amendment made by subsection (a) shall take 
effect on October 1, 2000.

SEC. 604. IMMIGRATION PROVISIONS.

  (a) Nonimmigrant Aliens Ineligible To Receive Visas and Excluded From 
Admission for Nonpayment of Child Support.--
          (1) In general.--Section 212(a)(10) of the Immigration and 
        Nationality Act (8 U.S.C. 1182(a)(10)) is amended by adding at 
        the end the following:
                  ``(F) Nonpayment of child support.--
                          ``(i) In general.--Any nonimmigrant alien is 
                        inadmissible who is legally obligated under a 
                        judgment, decree, or order to pay child support 
                        (as defined in section 459(i) of the Social 
                        Security Act), and whose failure to pay such 
                        child support has resulted in an arrearage 
                        exceeding $2,500, until child support payments 
                        under the judgment, decree, or order are 
                        satisfied or the nonimmigrant alien is in 
                        compliance with an approved payment agreement.
                          ``(ii) Waiver authorized.--The Attorney 
                        General may waive the application of clause (i) 
                        in the case of an alien, if the Attorney 
                        General--
                                  ``(I) has received a request for the 
                                waiver from the court or administrative 
                                agency having jurisdiction over the 
                                judgment, decree, or order obligating 
                                the alien to pay child support that is 
                                referred to in such clause; or
                                  ``(II) determines that there are 
                                prevailing humanitarian or public 
                                interest concerns.''.
          (2) Effective date.--The amendment made by this subsection 
        shall take effect 180 days after the date of the enactment of 
        this Act.
  (b) Authorization To Serve Legal Process in Child Support Cases on 
Certain Arriving Aliens.--
          (1) In general.--Section 235(d) of the Immigration and 
        Nationality Act (8 U.S.C. 1225(d)) is amended by adding at the 
        end the following:
          ``(5) Authority to serve process in child support cases.--
                  ``(A) In general.--To the extent consistent with 
                State law, immigration officers are authorized to serve 
                on any alien who is an applicant for admission to the 
                United States legal process with respect to any action 
                to enforce or establish a legal obligation of an 
                individual to pay child support (as defined in section 
                459(i) of the Social Security Act).
                  ``(B) Definition.--For purposes of subparagraph (A), 
                the term `legal process' means any writ, order, summons 
                or other similar process, which is issued by--
                          ``(i) a court or an administrative agency of 
                        competent jurisdiction in any State, territory, 
                        or possession of the United States; or
                          ``(ii) an authorized official pursuant to an 
                        order of such a court or agency or pursuant to 
                        State or local law.''.
          (2) Effective date.--The amendment made by this subsection 
        shall apply to aliens applying for admission to the United 
        States on or after 180 days after the date of the enactment of 
        this Act.
  (c) Authorization To Share Child Support Enforcement Information to 
Enforce Immigration and Naturalization Law.--
          (1) Secretarial responsibility.--Section 452 of the Social 
        Security Act (42 U.S.C. 652) is amended by adding at the end 
        the following:
  ``(m) If the Secretary receives a certification by a State agency, in 
accordance with section 454(35), that an individual who is a 
nonimmigrant alien (as defined in section 101(a)(15) of the Immigration 
and Nationality Act) owes arrearages of child support in an amount 
exceeding $2,500, the Secretary may, at the request of the State 
agency, the Secretary of State, or the Attorney General, or on the 
Secretary's own initiative, provide such certification to the Secretary 
of State and the Attorney General information in order to enable them 
to carry out their responsibilities under sections 212(a)(10) and 
235(d) of such Act.''.
          (2) State agency responsibility.--Section 454 of the Social 
        Security Act (42 U.S.C. 654), as amended by section 101(c) of 
        this Act, is amended--
                  (A) by striking ``and'' at the end of paragraph (33);
                  (B) by striking the period at the end of paragraph 
                (34) and inserting ``; and''; and
                  (C) by inserting after paragraph (34) the following:
          ``(35) provide that the State agency will have in effect a 
        procedure for certifying to the Secretary, in such format and 
        accompained by such supporting documentation as the Secretary 
        may require, determinations that nonimmigrant aliens owe 
        arrearages of child support in an amount exceeding $2,500.''.

SEC. 605. CORRECTION OF ERRORS IN CONFORMING AMENDMENTS IN THE WELFARE-
                    TO-WORK AND CHILD SUPPORT AMENDMENTS OF 1999.

  The amendments made by section 2402 of Public Law 106-246 shall take 
effect as if included in the enactment of section 806 of H.R. 3424 of 
the 106th Congress by section 1000(a)(4) of Public Law 106-113.

SEC. 606. ELIMINATION OF SET-ASIDE OF WELFARE-TO-WORK FUNDS FOR 
                    SUCCESSFUL PERFORMANCE BONUS.

  (a) In General.--Section 403(a)(5) of the Social Security Act (42 
U.S.C. 603(a)(5)) is amended by striking subparagraph (E) and 
redesignating subparagraphs (F) through (K) as subparagraphs (E) 
through (J), respectively.
  (b) Conforming Amendments.--
          (1) Section 403(a)(5)(A)(i) of such Act (42 U.S.C. 
        603(a)(5)(A)(i)) is amended by striking ``subparagraph (I)'' 
        and inserting ``subparagraph (H)''.
          (2) Subclause (I) of each of subparagraphs (A)(iv) and (B)(v) 
        of section 403(a)(5) of such Act (42 U.S.C. 603(a)(5)(A)(iv)(I) 
        and (B)(v)(I)) is amended--
                  (A) in item (aa)--
                          (i) by striking ``(I)'' and inserting 
                        ``(H)''; and
                          (ii) by striking ``(G), and (H)'' and 
                        inserting ``and (G)''; and
                  (B) in item (bb), by striking ``(F)'' and inserting 
                ``(E)''.
          (3) Section 403(a)(5)(B)(v) of such Act (42 U.S.C. 
        603(a)(5)(B)) is amended in the matter preceding subclause (I) 
        by striking ``(I)'' and inserting ``(H)''.
          (4) Subparagraphs (E) and (F) of section 403(a)(5) of such 
        Act (42 U.S.C. 603(a)(5)(F) and (G)), as so redesignated by 
        subsection (a) of this section, are each amended by striking 
        ``(I)'' and inserting ``(H)''.
          (5) Section 412(a)(3)(A) of such Act (42 U.S.C. 612(a)(3)(A)) 
        is amended by striking ``403(a)(5)(I)'' and inserting 
        ``403(a)(5)(H)''.
  (c) Funding.--Section 403(a)(5)(I)(i)(II) of such Act (42 U.S.C. 
603(a)(5)(I)(i)(II)) is amended by striking ``$1,450,000,000'' and 
inserting ``$1,400,000,000''.
  (d) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 607. INCREASE IN PAYMENT RATE TO STATES FOR EXPENDITURES FOR SHORT 
                    TERM TRAINING OF STAFF OF CERTAIN CHILD WELFARE 
                    AGENCIES.

  Section 474(a)(3)(B) of the Social Security Act (42 U.S.C. 
674(a)(3)(B)) is amended by inserting ``, or State-licensed or State-
approved child welfare agencies providing services,'' after ``child 
care institutions''.

                       TITLE VII--EFFECTIVE DATE

SEC. 701. EFFECTIVE DATE.

  (a) In General.--Except as provided in sections 101(e), 304, 603(b), 
605(b) and 606, and in subsection (b) of this section, this Act and the 
amendments made by this Act shall take effect on October 1, 2001, and 
shall apply to payments under part D of title IV of the Social Security 
Act for calendar quarters beginning on or after such date, and without 
regard to whether regulations to implement such amendments are 
promulgated by such date.
  (b) Delay Permitted if State Legislation Required.--In the case of a 
State plan approved under section 454 of the Social Security Act which 
requires State legislation (other than legislation appropriating funds) 
in order for the plan to meet the additional requirements imposed by 
the amendments made by this Act, the State plan shall not be regarded 
as failing to comply with the additional requirements solely on the 
basis of the failure of the plan to meet the additional requirements 
before the 1st day of the 1st calendar quarter beginning after the 
close of the 1st regular session of the State legislature that begins 
after the date of the enactment of this Act. For purposes of the 
previous sentence, in the case of a State that has a 2-year legislative 
session, each year of such session shall be deemed to be a separate 
regular session of the State legislature.

                            I. INTRODUCTION

                          A. Purpose and Scope

    The Child Support Distribution Act of 2000 is designed to 
provide more child support money to families leaving welfare, 
simplify the rules governing the assignment and distribution of 
child support collected by States, improve the collection of 
child support, implement a fatherhood grant program to promote 
marriage, encourage successful parenting, and help fathers find 
jobs and increase their earnings, and for other purposes.

                 B. Background and Need for Legislation

    The Child Support Enforcement (CSE) program, created in 
1975 and authorized under Title IV-D of the Social Security 
Act, is a State-Federal partnership developed to collect child 
support payments from parents who do not live with their 
children. In 1998, the most recent year for which data are 
available, the program collected nearly $14.4 billion in child 
support payments for single parents and their children, located 
6.5 million noncustodial parents, established 848,000 
paternities, and established 1.1 million child support orders. 
Collections by the CSE program have increased more than 60 
percent since 1993.
    The 1996 welfare reform law (P.L. 104-193) improved the CSE 
program by providing: immediate reporting of employer address 
and wages for every person hired in the United States; strong 
paternity establishment requirements; new mechanisms to collect 
child support payments such as revocation of hunting, fishing, 
and drivers licenses; and greater automation of the child 
support system. These provisions are widely believed to be the 
major reasons child support collections have improved so much 
in recent years. However, as the States work toward even more 
effective implementation of the welfare reform provisions, 
there are several issues that were not fully addressed by the 
1996 legislation.
    The most important question is whether the family or the 
Federal and State governments get to keep collections on past-
due child support. When families are on welfare, the State 
retains all or most child support collections and shares them 
with the Federal government. Before 1996, when the family left 
welfare, States and the Federal government were able to retain 
and split all payments on past-due support, a total of well 
over $1 billion per year. However, the 1996 welfare reform law 
(P.L. 104-193) required States and the Federal government to 
pay approximately half of collections on past-due support to 
mothers. Even so, government still retains approximately half 
of the collections on child support, about $500 million per 
year.
    Since enactment of welfare reform in 1996, welfare rolls 
have declined substantially as about 1 million former welfare 
mothers left welfare for work. As was the case in 1995-96 when 
the Committee required half of the collections on past-due 
support to be paid to mothers, we are now intent on requiring 
that the other half be paid to mothers. Given the remarkable 
effort poor and low-income mothers are now making to stay off 
welfare, a crucial goal of public policy should be to assist 
them in every way possible. The $500 million per year the 
Committee bill will provide for these mothers when the 
provision is fully implemented is excellent public policy. 
Moreover, because this policy results in the maximum amount of 
the father's child support payments going to the mother and 
children, the father's commitment to the family is strengthened 
and made transparent to the mother and children.
    In addition to these many advantages of the Committee's 
policy of sharing additional child support collections with 
families, the Committee bill also greatly simplifies the rules 
for assignment and distribution of child support. The current 
rules are exceedingly complex and make it all but impossible 
for State computer programs to correctly distribute 
collections. Many States have testified, written letters, or 
called the Committee to request that everything possible be 
done to simplify these complex distribution rules. The 
Committee bill responds to these requests and makes the rules 
of child support assignment and distribution simpler and more 
straightforward than they have ever been.
    Increasing the number and percentage of American children 
living in two-parent families is vital if the nation is to make 
serious and permanent progress against poverty. Thus, public 
policy should aim to reduce the number of nonmarital births, 
promote marriage, and increase the employment prospects of low-
income fathers. Title V of this bill, which contains the 
Fathers Court Act, is the Committee's response to creating 
Federal policy addressed to these goals.
    So far, the goal of increasing personal responsibility by 
emphasizing more work and fewer births outside marriage has 
focused almost entirely on mothers. But single parenting, in 
addition to being associated with very difficult and stressful 
family life, will inevitably produce lots of financial 
hardship. Even with the impressive array of work services and 
income supplements that have increased dramatically in recent 
years, a significant fraction of single parent families will 
always face economic hardship. Moreover, a large and growing 
body of scientific research, which has been summarized by 
numerous witnesses at our hearings, shows that children reared 
in single-parent families are less likely to perform well in 
school, less likely to graduate, more likely to commit crimes, 
more likely to have children outside marriage, and more likely 
to be on welfare as adults than children reared in two-parent 
families.
    Thus, the Committee is now following the 1996 welfare 
reforms with its next major step in creating a set of policies 
and programs aimed at reducing poverty and increasing child 
well being. More specifically, the Committee hopes by this 
legislation to increase marriage, improve parenting, and 
increase the income of fathers. To achieve these goals, we want 
to encourage governmental and nongovernmental, including faith 
based, organizations to develop programs that help fathers 
significantly improve their contribution to family life by 
helping them improve their relations with their children and 
the children's mothers and by increasing their employment and 
earnings. Over the next six years, this legislation would fund 
a host of demonstration programs that would develop projects 
aimed at helping fathers in these ways. By carefully evaluating 
these new projects, we hope to learn how to design and 
implement effective programs for fathers and their families.

                         C. Legislative History

Committee bill

    On June 27, 2000 the Subcommittee on Human Resources 
ordered favorably reported, with amendment, to the full 
Committee, H.R. 4678, the ``Child Support Distribution Act of 
2000'', by recorded vote (7-6), with a quorum present. The full 
Committee on Ways and Means considered the Subcommittee 
reported bill on July 19, 2000 and ordered it favorably 
reported, as amended, on July 19, 2000, by voice vote.
    Title V of H.R. 4678, as amended, contains provisions from 
the Fathers Count Act of 1999 (H.R. 3073). On November 10, 
1999, H.R. 3073 passed the House on a vote of 328 to 93. On 
October 21, 1999 the Committee on Ways and Means reported the 
bill, as amended to the floor of the House of Representatives. 
On October 13, 1999 the Subcommittee on Human Resources ordered 
favorably reported to the full Committee, H.R. 3073, the 
``Fathers Count Act of 1999'', by a voice vote, with a quorum 
present.

Legislative hearings

    The Subcommittee on Human Resources held a hearing on May 
18, 2000, to receive comments on H.R. 4469, the bill as 
originally introduced by Chairman Nancy Johnson. Testimony at 
the hearing was presented by the Administration, program 
administrators, advocates, researchers, and Members of the U.S. 
House of Representatives. The Subcommittee also conducted 
hearings on May 19, 1998 (Serial 105-89), September 23, 1999 
(Serial 106-31), and October 5, 1999 (Serial 106-30) on child 
support enforcement issues, which included testimony from the 
Administration, child support administrators, officials of 
local child support programs that operate independently of the 
Federal-State program, academic witnesses, researchers, and 
advocacy groups. Testimony at these hearings concerned State 
implementation of the 1996 child support reforms, the current 
and potential role of child support enforcement outside the 
Federal-State program funded under Title IV-D of the Social 
Security Act, and the impact of domestic violence on child 
support enforcement. The Subcommittee also held a hearing on 
October 5, 1999 (Serial 106-30), to receive comments on H.R. 
3073, the fatherhood legislation that is now Title V of H.R. 
4678. Testimony at the hearing was presented by scholars, 
program administrators, foundation executives, and Members of 
the U.S. House of Representatives and the U.S. Senate. The 
Subcommittee also conducted hearings on April 27, 1999 and July 
30, 1998 (Serial 105-78) on fatherhood programs, which included 
testimony from the Administration, researchers, advocates, 
individuals who have designed and conducted programs for low-
income fathers, and young fathers whose children are on 
welfare.

                     II. EXPLANATION OF PROVISIONS

                             1. Short Title

Present law

    No provision.

Explanation of provision

    This Act may be cited as the ``Child Support Distribution 
Act of 2000''.

Reason for change

    Not applicable.

                 Title I. Distribution of Child Support

 Sec. 101. Distribution of Child Support Collected by States on Behalf 
             of Children Receiving Certain Welfare Benefits

  1. Modification of Rule Requiring Assignment of Support Rights as a 
                      Condition of Receiving TANF

Present law

    Federal law requires that as a condition of receiving 
Temporary Assistance for Needy Families (TANF) funds, the 
parent or caretaker relative must assign her rights to child 
support to the State. The assignment covers any child support 
that accrues (or had already accrued before the family enrolled 
in TANF) before the date the family leaves the TANF program. 
The assignment must not exceed the total amount of assistance 
paid to the family.

Explanation of provision

    States must require adults receiving assistance from the 
Temporary Assistance for Needy Families (TANF) program to 
assign to the State any rights members of the family have to 
child support but only during the time the family receives TANF 
benefits. The amount of support assigned to the State cannot 
exceed the total amount of assistance provided to the family 
that accrues while the family receives assistance.

Reason for change

    See (2)(b) below.

2. Increasing Child Support Payments to Families and Simplifying Child 
                       Support Distribution Rules

a. Distribution Rules

            (1) Families Receiving Assistance

Present law

    While the family receives TANF benefits, the State is 
permitted to retain any current child support payments and any 
assigned arrearages it collects up to the cumulative amount of 
TANF benefits which have been paid to the family. The State can 
decide how much, if any, of the State share (some, all, none) 
of the child support payment collected on behalf of TANF 
families to send to the family. The State is required to pay 
the Federal government the Federal share of the child support 
collected, even if the State shares its collections with 
families.

Explanation of provision

    Same as current law.

Reason for change

    See (2)(b) below.
            (2) Families That Formerly Received Assistance
                (a) Current support

Present law

    Current child support payments must be paid to the family 
if the family is no longer on TANF.

Explanation of provision

    Same as current law.

Reason for change

    See (2)(b) below.
                (b) Arrearages

Present law

    Since October 1, 1997, if the amount collected exceeds 
current support, child support arrearages (past-due support) 
that accrue after the family leaves TANF are required to be 
paid to the family before any monies may be retained by the 
State. (Arrearages that accrued before the family began 
receiving TANF do not have to be distributed to the family 
first.) Beginning October 1, 2000, if the amount collected 
exceeds current support, child support arrearages that accrued 
before the family began receiving TANF also are required to be 
distributed to the family first. If child support arrearages 
are collected through the Federal income tax refund offset 
program, the family does not have first claim on the arrearage 
payments. Such arrearage payments are retained by the State and 
the Federal government.

Explanation of provision

    If the amount collected exceeds current support, the excess 
is paid first to the family until the family is paid all the 
child support arrearages that are owed. Once the family is 
completely repaid, the State retains collections, paying the 
Federal government its share, until the State has been repaid 
the amount of child support that accumulated while the family 
was on TANF or the amount of TANF benefits paid to the family, 
whichever is less. Any remaining amount is paid to the family.

Reason for change

    The Committee pursued three goals in changing the law on 
assignment and distribution rules. First, since 1995, the 
Committee has supported the policy of giving all payments on 
child support arrearages to mothers. Providing these additional 
funds to mothers leaving welfare will both increase their 
incentive to leave welfare and increase the chances that they 
will be able to sustain themselves and their children without 
falling back on cash welfare. Second, testimony received by the 
Committee overwhelmingly indicated that the current child 
support distribution rules are nearly impossible to understand 
and even more difficult to translate into computer software so 
the States can operate their child support distribution 
programs efficiently. Third, the Committee strongly agrees with 
the view of experts on fatherhood programs and child advocates 
that sending more of the child support payments made by fathers 
to the mothers and children strengthens family bonds, provides 
fathers with the assurance that their money is being spent on 
their children, and reinforces for mothers and children the 
fathers' commitment to their well-being. The Committee bill 
greatly simplifies both the assignment rules and the 
distribution rules and substantially increases the amount of 
money being provided to families.
    To a substantial degree, the Committee bill achieves all 
three of these goals by following a simple ``on-off'' principle 
with regard to both assignment and distribution rules. Thus, 
when families are on welfare, both the assignment of child 
support and any payments received during the period the family 
is on welfare (up to the amount of the support order or the 
amount of welfare payment, whichever is less) go to the State 
and are split with the Federal government. However, when the 
family is not on welfare, all child support that falls due and 
all child support payments, both on current support and 
arrearages, go to the family. If the family is no longer on 
welfare, and if all past-due support has been repaid to the 
family, then and only then can the State and Federal 
governments retain payments on past-due support.
            (3) Limitations
                (a) Federal reimbursements

Present law

    The total amount paid by the State to the Federal 
government cannot exceed the Federal share of the amount of 
child support collected.

Explanation of provision

    The total amount paid by the State to the Federal 
government cannot exceed the Federal share of the assignment 
that occurred while the family was receiving TANF.

Reason for change

    This provision is consistent with current law in that it 
simply assures that the Federal government gets a share of 
collections while the family is on welfare. The principle that 
underlies this provision has been consistent since the 
enactment of the child support enforcement program in 1975; 
namely, that taxpayers should be reimbursed by noncustodial 
parents because their taxes provided the cash benefits that 
supported, in the absence of child support payments, the 
noncustodial parents' children.
                (b) State reimbursements

Present law

    The total amount retained by the State cannot exceed either 
the State share of the amount of child support collected, or 
the amount necessary to reimburse the State for cash assistance 
paid to the family.

Explanation of provision

    The total amount retained by the State cannot exceed the 
State share of the assignment that occurred while the family 
was receiving TANF.

Reason for change

    Again, as with the rules on Federal reimbursements, the 
Committee bill does not alter the current-law principle that 
government should be reimbursed for the cash welfare payments 
made out of funds provided by taxpayers.
            (4) Families That Never Received Assistance

Present law

    Child support payments must be paid to the family if the 
family never received TANF.

Explanation of provision

    Same as current law.

Reason for change

    Not applicable.
            (5) Families Under Certain Agreements

Present law

    Any State that has Indian country may enter into a 
cooperative agreement with an Indian tribe if the tribe 
demonstrates that it has an established tribal court system 
with several specific characteristics. The Secretary of HHS may 
make direct payments to Indian tribes that have approved child 
support enforcement plans. In the case of child support 
collected for a family under the cooperative agreement 
described above, the State must distribute the amount collected 
pursuant to the terms of the agreement.

Explanation of provision

    Same as current law.

Reason for change

    Not applicable.
            (6) State Financing Options

Present law

    The Federal government reimburses each State 66 percent 
(more for certain expenses) of all allowable expenditures on 
Child Support Enforcement activities. It also refunds to States 
90 percent of the laboratory costs of establishing paternity 
and 80 percent of a capped amount for developing and improving 
statewide automated information systems. The Federal government 
also provides States with an incentive payment. In addition to 
the Federal matching and incentive payments, States can retain 
part of their collections in welfare and former welfare cases. 
The amount of child support collections that may be retained by 
the State is governed by the child support distribution rules. 
Federal law stipulates that any child support that is collected 
on behalf of TANF families and subsequently passed through to 
the families and disregarded in determining TANF benefits and 
eligibility may be counted toward the TANF Maintenance of 
Effort requirement.

Explanation of provision

    If this legislation causes a State to retain less child 
support than the State was allowed to retain under previous 
law, the State may take either of two steps to offset the lost 
revenue. First, the State may count the difference toward the 
amount the State must spend under the Maintenance of Effort 
requirement in the TANF program. Second, the State may use TANF 
funds to reimburse itself for the difference. By October 1, 
2001, the Secretary, in consultation with the States, must 
establish the procedures by which the difference between the 
State share of collections under previous law and this 
provision are to be calculated.

Reason for change

    Based on testimony and data reported by States that was 
reviewed during the Committee hearings and during meetings 
between Committee staff and both Federal and State officials, 
many States are experiencing significant changes in financing 
their child support program. About 30 percent of the average 
State's funding of its child support program is the State share 
of child support collections from welfare cases. But welfare 
cases have declined by over 50 percent since 1994, thereby 
reducing the number of cases from which States can retain 
collections. This trend has been offset somewhat by the 
increased effectiveness and efficiency of State programs as a 
result of implementing the provisions of the child support 
amendments that were part of the 1996 welfare reform law. Even 
so, many States are having difficulty with financing. The 
Committee has been working with States to help them absorb the 
additional costs of the new distribution provisions of this 
bill. The negotiations have resulted in two changes from 
earlier versions of this bill. First, we have delayed mandatory 
implementation for 5 years. This will provide States with time 
to fully implement the 1996 amendments that should increase 
their collections and efficiency. The delay will also provide 
States with ample time to plan how they will absorb the 
additional costs of providing more child support collections to 
mothers leaving welfare. Second, the Committee bill allows 
States to cover some or all of their losses by either counting 
such losses toward their required maintenance of effort 
spending in the Temporary Assistance for Needy Families (TANF) 
program or by using money from the TANF program to fund child 
support activities, but not both. In either case, the total 
amount of money cannot exceed the difference between the amount 
of child support collections in welfare cases the States would 
have been able to retain under previous law and the amount they 
will be able to retain under the Committee bill. States have 
the option of implementing some or all of the new rules at any 
time after October 1, 2000.

b. Current Support Amount Defined

Present law

    No provision.

Explanation of provision

    The term ``current support amount'' means the amount of 
support designated as the monthly support obligation of the 
noncustodial parent in a child support order.

Reason for change

    Although current law contains no definition of ``current 
support amount'', the Committee's definition is consistent with 
the common meaning of this term as it is now used by the courts 
and by State child support programs.

        3. Ban on Recovery of Medicaid Costs for Certain Births

Present law

    Federal law requires States to implement procedures under 
which bills for pregnancy, child birth, and genetic testing 
constitute prima facie evidence of amounts incurred for such 
services or testing on behalf of the child.

Explanation of provision

    States must not use the Child Support Enforcement program 
to collect money from noncustodial parents in the attempt to 
recoup the costs of births paid by the Medicaid program.

Reason for change

    The Committee has a long history of concern for the 
financial plight of poor fathers, especially poor young 
fathers. Through testimony and discussions with HHS and the 
various Congressional agencies, we have discovered that some 
States require fathers to pay up to $1,000 to reimburse the 
State medicaid program for birth costs. There is wide agreement 
among child advocates, State officials, and experts that many 
young fathers are already saddled with big child support bills, 
which are increased to even greater amounts by the practice of 
charging fathers for the cost of birth. The Committee is intent 
on developing a child support system that puts both paternity 
orders and child support orders in place as soon after 
nonmarital births as possible so that child support payments, 
even if they are modest, can begin to flow before arrearages 
start piling up. Our goal is to reduce the current unfortunate 
situation of young fathers facing $5,000 or even $10,000 in 
child support arrearages. Committee hearings have shown that 
this level of debt drives many poor fathers underground and 
prevents them from holding regular jobs. For this reason, we 
believe the additional burden of medicaid birth payments 
interferes with the overall policy of helping young fathers 
both get out of debt and begin making payments on current 
support. Thus, we are prohibiting States from using the child 
support system to collect money from fathers to cover birth 
costs.

                        4. Conforming Amendments

Present law

    No provision.

Explanation of provision

    Three conforming amendments are made to conform the 
provisions of this title with other provisions of Title IV (the 
Temporary Assistance for Needy Families program) of the Social 
Security Act.

Reason for change

    These amendments are made simply to make other statutory 
provisions consistent with the ones we have amended.

                           5. Effective Date

Present law

    No provision.

Explanation of provision

    Unless otherwise noted, the effective date for provisions 
in this section is October 1, 2005 or earlier at State option.

Reason for change

    The major provisions of this legislation have individual 
effective dates that are specified in statutory changes. For 
the remaining provisions, we have selected October 1, 2001 as a 
reasonable effective date because States would be provided with 
a minimum of 1 year to prepare for the changes. However, as is 
normal practice for the Committee, we are granting additional 
time for any provision that requires State legislation (other 
than legislation to simply appropriate money).

        Title II. Review and Adjustment of Child Support Orders

Sec. 201. Mandatory Review and Modification of Child Support Orders for 
                            TANF Recipients

                        1. Review Every 3 Years

Present law

    States have the option of reviewing child support orders 
every 3 years and, if appropriate, adjusting orders that are 
being enforced by the State Child Support Enforcement program.

Explanation of provision

    States are required to review and update child support 
orders that are being enforced by the State program every 3 
years.

Reason for change

    Child support orders become outdated on a regular basis. 
The factors that cause support amounts to become outdated 
include inflation, unemployment, promotions or job changes that 
result in increased or decreased income, marriage by either 
parent, disabilities, and a host of other changes. However, 
States must invest time and money to update orders. According 
to the Congressional Budget Office (CBO), both States and the 
Federal government would save money if child support orders 
were updated every 3 years. Thus, because updating orders, if 
done properly, always promotes fairness and because the CBO 
estimates show that updating would save money, the Committee 
feels it appropriate to require routine updates every 3 years.

                      2. Review Upon Leaving TANF

Present law

    There is no identical provision in current law, but Federal 
law requires States to provide notice to parents once every 3 
years informing them of their right to request a review and, if 
appropriate, an adjustment of their child support order.

Explanation of provision

    The State TANF program is required to inform the State 
Child Support Enforcement program when a family leaves the TANF 
program if the parent has custody of a child whose other parent 
is not living with the child. When the State Child Support 
Enforcement agency receives the notice, the agency must examine 
the family's case file, determine what actions need to be taken 
to produce child support payments, take such actions 
immediately, and review and adjust the order as necessary if 
the order has not been updated during the previous 12 months.

Reason for change

    For many years, under both Democratic and Republican 
majorities, the Committee has pursued the goal of helping 
mothers leave welfare and achieve self-support for themselves 
and their children. The reforms made by Title I of this 
legislation are another step toward helping mothers achieve 
independence because they would result in mothers receiving 
additional child support payments once they leave welfare. 
Given the potential importance of child support payments in 
helping mothers leave and stay off welfare, it makes sense to 
require States to focus their attention on the child support 
cases of mothers leaving welfare and to be certain that every 
action, including award updating, is being taken to maximize 
the amount of child support these mothers receive.

   Title III. Demonstrations of Expanded Information and Enforcement

 Sec. 301. Guidelines for Involvement of Public Non-IV-D Child Support 
           Enforcement Agencies in Child Support Enforcement

                       1. Issuance of Guidelines

Present law

    No provision.

Explanation of provision

    The Secretary, in consultation with States, local 
governments, and individuals or companies knowledgeable about 
child support collection by agencies other than the Federal-
State Child Support Enforcement program, must develop a set of 
recommendations which address the participation of public non-
IV-D child support enforcement agencies in child support 
enforcement. The recommendations must include substantive and 
procedural rules with respect to privacy safeguards, data 
security, due process rights, administrative compatibility with 
State and Federal automated systems, eligibility requirements 
such as licensing and posting of bonds in order to gain access 
to Federal and State child support information and enforcement 
mechanisms, recovery of costs by charging fees, and penalties 
for violations of rules. These recommendations are to be used 
by States in their role of overseeing child support enforcement 
by public non-IV-D agencies.

Reason for change

    The Committee wants the Secretary to carefully review all 
the issues associated with sharing information and enforcement 
mechanisms with public non-IV-D agencies. In conducting the 
review, the Secretary should consult widely with individuals 
and organizations that have experience with debt collection, 
data security, legal issues associated with privacy, and so 
forth. We are granting the Secretary a full year to conduct 
this study and, based on her findings, issue recommendations to 
States that wish to conduct demonstrations on sharing 
information and enforcement mechanisms with either public or 
private agencies. Because the Secretary will be granted 
authority to approve the demonstrations, she has the ability to 
enforce the requirements that she believes to be necessary to 
conduct the demonstrations without violating privacy, without 
violating due process rights, without disrupting the effective 
enforcement mechanisms now in place, without imposing 
additional uncompensated costs on State or local IV-D programs, 
or without violating any other consideration the Secretary 
thinks important to successfully involving public non-IV-D 
agencies in child support enforcement.

                             2. Definitions

Present law

    No provision.

Explanation of provision

    Several definitions are included in this section to clarify 
the meaning of the statutory changes. The most important 
definitions are those for public non-IV-D child support 
enforcement agencies. A public non-IV-D child support 
enforcement agency is an agency of a political subdivision of a 
State which is principally responsible for the operation of a 
child support registry or for the establishment or enforcement 
of an obligation to pay child support other than pursuant to 
the State IV-D plan, or a clerk of court office of a political 
subdivision of a State.

Reason for change

    The purpose of the definition of public non-IV-D child 
support enforcement agency is to clarify the types of agencies 
that may participate in the demonstration projects.

  Sec. 302. Demonstrations Involving Establishment and Enforcement of 
Child Support Obligations by Public Non-IV-D Child Support Enforcement 
                                Agencies

                               1. Purpose

Present law

    Federal law requires the Federal Parent Locator Services to 
obtain and provide to authorized persons (i.e., custodial 
parents or their attorney or agent) information on, or 
facilitating the discovery of, noncustodial parents. The 
authorized person must submit a request for FPLS information 
through the State Parent Locator Service established by the 
State Child Support Enforcement agency. Upon written request, 
the Federal Parent Locator Service will send the authorized 
person the Social Security number and address of the 
noncustodial parent, and the name of the noncustodial parent's 
employer and the employer's address. Public and private 
agencies not affiliated with the Child Support Enforcement 
program currently have access to a limited number of 
enforcement tools, such as wage withholding and property liens. 
They also may use a variety of interstate enforcement tools.

Explanation of provision

    The purpose of the demonstrations authorized in this title 
is to determine the extent to which public non-IV-D child 
support enforcement agencies may contribute effectively to the 
establishment and enforcement of child support obligations on 
behalf of custodial parents who need services.

Reason for change

    Years of hearings by our Committee have demonstrated that 
the Federal-State child support enforcement program authorized 
under Title IV-D of the Social Security Act is improving but 
still has major shortcomings. First, at least \1/3\rd of all 
child support cases are operated outside the IV-D program. 
These cases include those that involve direct cooperation 
between parents who do not live together and those being 
enforced by private sector lawyers or child support collection 
agencies, or public non-IV-D child support agencies. These 
parents, lawyers, collection agencies, and non-IV-D agencies do 
not now have access to information and enforcement mechanisms 
on the same basis as the IV-D program.
    Second, of the 5.7 million welfare cases being enforced by 
the IV-D program in 1998, only 14 percent yielded any 
collections; of the 14.0 million non-welfare cases, only 22 
percent yielded any collections. These and similar measures of 
the effectiveness of the IV-D program are reviewed in some 
detail in the Ways and Means Committee's 1998 Green Book (see 
Section 8, pp. 545-657). In general, studies and data reviewed 
there show that although the IV-D program has been growing 
since its inception in 1978, overall national measures of child 
support performance have not improved very much. The Federal-
State program already employs over 50,000 workers and costs 
nearly $4 billion per year. It is unlikely that either the 
Federal or State governments will soon appropriate the funds 
necessary to hire more workers and spend even more money to 
ensure services for those who do not now receive help. Thus, it 
would seem reasonable to conclude that the IV-D program could 
use help from sources such as non-IV-D public child support 
agencies.
    Given that there are now millions of custodial parents who 
are not getting the help they need to collect child support, 
coupled with the fact that there are important issues about 
privacy, fees, due process, data security, and costs that might 
be imposed on the IV-D program, the Committee has determined 
that demonstrations involving public non-IV-D child support 
agencies are the best policy. In this way, the number of States 
exploring the expansion of child support information and 
enforcement mechanisms can be controlled, the Secretary can set 
strong rules and limits while providing oversight, and good 
evaluations can be conducted.

                            2. Applications

a. Preferences

Present law

    No provision.

Explanation of provision

    In considering applications for demonstrations, the 
Secretary must give preference to applications from States that 
have laws and procedures that provide authority for public 
enforcement agencies to have access to child support 
information or enforcement mechanisms.

Reason for change

    Based on our Committee hearings and correspondence, it is 
clear that a few States have facilitated child support 
activities by public child support entities that operate 
outside the IV-D program. States that have a record of working 
cooperatively with such entities, as demonstrated by either 
statutory or regulatory provisions or administrative practices, 
should be the first ones considered for operating demonstration 
programs. Unless there are compelling reasons for not awarding 
a demonstration to these States, the Secretary should approve 
their applications.

b. Approval

Present law

    No provision.

Explanation of provision

    The Secretary is authorized to approve up to 10, and must 
approve at least 5 (if at least 5 applications are received), 
applications from States planning to conduct demonstrations 
involving public non-IV-D collection agencies. Before any 
application can be approved, the applicant State and the 
Secretary must enter into a written agreement which addresses 
privacy safeguards, data security, due process rights, 
automated systems, liability, oversight, fees, and any other 
topic specified by the Secretary. The application must also 
include a research plan that focuses on assessing the costs and 
benefits of the demonstration. Applications cannot be approved 
unless the Secretary judges them to be likely to contribute 
significantly to the achievement of the purpose of this title. 
Demonstrations on public agencies can be approved on or after 
July 1, 2002.

Reason for change

    Because demonstrations involving public child support 
agencies are relatively noncontroversial, and because several 
States seem ready to conduct demonstrations, the Committee is 
authorizing up to 10 public demonstrations. The demonstrations 
must address the important issues, such as privacy, data 
security, and due process, that the Committee has identified 
through its hearing process and through extensive 
correspondence and face-to-face meetings with advocates and 
other interested parties. These issues will be spelled out in 
detail by the Secretary's report (see above). We are requiring 
research to be conducted and reported because the goal of the 
demonstrations is to increase our knowledge of the potential 
for public agencies to improve the nation's child support 
enforcement system.

                       3. Demonstration Authority

Present law

    No provision.

Explanation of provision

    States with approved demonstration applications are given 
the authority to share information and certain enforcement 
mechanisms with public child support agencies. The State agency 
may collect fees to recover the costs of providing information 
or access to enforcement mechanisms to public agencies. Public 
agencies in States participating in a demonstration are granted 
the authority to provide names for the Federal tax intercept 
program, the unemployment compensation intercept program, the 
passport denial program, the credit bureau reporting program, 
and the financial institution data match program.

Reason for change

    The Committee wants to clarify the specific provisions of 
Federal child support statutes that States operating 
demonstrations and public entities participating in 
demonstrations can ask to be waived.

                          4. Waiver Authority

Present law

    No provision.

Explanation of provision

    For purposes of this demonstration program, the Secretary 
is given the authority to waive statutory requirements for the 
unemployment compensation intercept program, for the passport 
intercept program, for the Federal tax intercept program, for 
the credit bureau reporting program, and for financial 
institution data match program, and for the information 
comparisons involving new hire data.

Reason for change

    These are the specific information provisions and 
enforcement mechanisms the Committee wants to make available to 
public collection agencies to determine whether they can 
augment the efforts of the Federal-State IV-D program. Thus, we 
are providing the Secretary with the authority to waive these 
provisions.

                            5. Federal Audit

Present law

    No provision.

Explanation of provision

    The Comptroller General of the United States must conduct 
an audit of all demonstration projects to evaluate the manner 
in which information and enforcement mechanisms were used. The 
Comptroller's report on demonstrations involving public 
agencies is due on October 1, 2004.

Reason for change

    The major reason the Committee is authorizing these 
demonstrations is to determine whether public agencies can 
contribute to the effective and efficient collection of child 
support without violating privacy, due process rights, and data 
security requirements and without imposing a burden on State 
and local IV-D programs. Because the Comptroller General is 
widely recognized as the watchdog agency of the Congress, it is 
to be expected that we would turn to him for a careful and 
detailed audit of how these demonstrations were conducted and 
the extent to which they achieved the goals Congress has set.

                 6. Secretarial Report to the Congress

Present law

    No provision.

Explanation of provision

    The Secretary must submit reports to Congress, based on the 
evaluation studies and other sources, on her findings from the 
demonstrations. The Secretary must include policy 
recommendations on whether the demonstrations should continue 
or be expanded. The Secretary's report on the public 
demonstrations is due on October 1, 2005.

Reason for change

    Again, the major reason the Committee is authorizing these 
demonstrations is to determine whether public agencies can 
contribute to the effective and efficient collection of child 
support without violating privacy, due process rights, and data 
security requirements and without imposing a burden on State 
and local IV-D programs. Because the Secretary will be the 
central actor in the demonstrations, Congress is requiring her 
to evaluate all the information available about the 
demonstrations, including the State evaluations and the 
Comptroller General reports, and present Congress with a 
summary of what has been learned along with her views on what 
subsequent course of action Congress should take.

 Sec. 303. GAO Report to Congress on Private Child Support Enforcement 
                                Agencies

Present law

    No provision.

Explanation of provision

    Given all the claims and counterclaims about private child 
support agencies the Committee has heard in hearings, 
correspondence, and meetings, we are requiring the General 
Accounting Office (GAO) to review all the evidence available 
about these agencies and to prepare a report by October 1, 
2001. The report must address the issue of whether private 
agencies are providing a needed service in a fair manner using 
accepted debt collection practices at a reasonable fee. The 
report also will include information on the amount of past-due 
child support, the time it takes to collect past-due support, 
and the types of enforcement remedies currently available to 
private child support agencies.

Reason for change

    The Committee would like GAO to assess the need for 
additional entities outside the IV-D program to participate in 
child support enforcement. The Committee also wants to have a 
public report by an experienced and unbiased agency about 
whether private child support collection agencies as presently 
constituted are functioning effectively and fairly. 
Undoubtedly, the report will show that some agencies use 
questionable practices and charge high fees. But given all the 
conflicting claims, we want to know if on balance private 
entities are making a positive contribution and, to the extent 
that these are problems, whether the problems can be restricted 
by government action.

                        Sec. 304. Effective Date

Present law

    No provision.

Explanation of provision

    This title shall take effect on the date of the enactment 
of this Act.

Reason for change

    Not applicable.

                     Title IV. Expanded Enforcement

  Sec. 401. Decrease in Amount of Child Support Arrearage Triggering 
                            Passport Denial

Present law

    The HHS Secretary is required to submit to the Secretary of 
State the names of noncustodial parents who have been certified 
by the State Child Support Enforcement agency as owing more 
than $5,000 in past-due child support. The Secretary of State 
is prohibited from issuing a passport to such noncustodial 
parents.

Explanation of provision

    The amount of past-due child support that triggers passport 
revocation is reduced from $5,000 to $2,500.

Reason for change

    The Committee seriously considered this proposal, which was 
originally introduced by Mr. Andrews of New Jersey, last year. 
However, as a result of meeting with the State Department about 
their efforts to implement the original $5,000 provision from 
the 1996 welfare reform law, we learned that the State 
Department and HHS had worked together to develop an effective 
procedure for transmitting information between the two 
Departments and for terminating passports. Because the 
Committee did not want to disrupt this new set of procedures 
that appeared to be working well, we asked HHS in consultation 
with the State Department to evaluate their procedures, 
estimate how many more cases would be brought into the system 
if Congress reduced the trigger from arrearages of $5,000 to 
arrearages of $2,500, and make recommendations to the Committee 
about whether HHS could handle the number of new cases. The 
report, which the Committee received in October 1999, 
recommended lowering the trigger. Thus, we are including the 
provision in this legislation because it will produce 
additional child support payments and thereby help more 
families.

Sec. 402. Use of Tax Refund Intercept Program To Collect Past-Due Child 
            Support on Behalf of Children Who Are Not Minors

Present law

    Federal law prohibits the use of the Federal income tax 
refund offset program to recover past-due child support on 
behalf of non-welfare cases in which the child is no longer a 
minor.

Explanation of provision

    The Federal income tax refund offset program may be used to 
recover past-due child support on behalf of non-welfare cases 
in which the child is no longer a minor.

Reason for change

    Current law prohibits past-due child support debts to be 
collected through the Federal tax intercept program on behalf 
of children over age 18 unless the children were on welfare. 
This policy violates equity by refusing a government service to 
children whose families were not on welfare. Congress appears 
to have adopted this restrictive policy because of concern that 
the Department of Treasury would be overrun with tax 
intercepts. However, now that the tax intercept program has 
been in operation for over two decades and intercepts more than 
one million tax returns each year, this modest expansion of the 
program is a minor burden for Treasury. Originally proposed by 
Representative Mike Castle (H.R. 4071), this provision promotes 
equal treatment of all child support debts, increases 
collections, and strengthens the important message that child 
support debts cannot be avoided by withholding payment until 
the child is no longer a minor.

  Sec. 403. Garnishment of Compensation Paid to Veterans for Service-
  Connected Disabilities in Order To Enforce Child Support Obligations

Present law

    The disability compensation benefits of veterans are 
treated differently than most forms of government payment for 
purposes of paying child support. Whereas most government 
payments are subject to being automatically withheld to pay 
child support, veterans disability compensation is not subject 
to intercept. The only exception occurs when veterans have 
elected to forego some of their retirement pay in order to 
collect additional disability payments. The advantage of 
veterans replacing retirement pay with disability pay is that 
the disability pay is not subject to taxation. With this 
exception, which occurs rarely, the only way to obtain child 
support payments from veterans' disability compensation is to 
request that the Secretary of the Veterans Administration 
intercept the disability compensation and make the child 
support payments.

Explanation of provision

    The Committee provision allows veterans' disability 
compensation benefits to be intercepted and paid on a routine 
basis to the custodial parent if the veteran is 60 days or more 
in arrears on child support payments. This provision cannot be 
used to collect alimony and no more than half of any particular 
check can be intercepted.

Reason for change

    The Committee, Federal child support officials, and State 
child support officials have long believed that veterans' 
disability compensation payments should be subject to 
withholding to pay child support. The Committee provision moves 
in this direction by allowing routine withholding once the 
veteran has been 60 days in arrears. Although this procedure 
still allows veterans' disability payments to be treated 
differently than most other government payments, the fact that 
veterans are receiving the payments because they were injured 
in the line of duty seems to justify special treatment.

                      Title V. Fatherhood Programs

                  Subtitle A--Fatherhood Grant Program

                      Sec. 501. Fatherhood Grants

Present law

    No provision.

Explanation of provision

    The Fatherhood Grant Programs would be added to the Social 
Security Act as section 403A.

Reason for change

    Based on extensive information, including testimony 
presented to the Committee in three hearings over a 2-year 
period, a major reason for poverty in the United States is the 
rising number of single-parent families, especially those 
created by nonmarital births. In addition, research presented 
in our hearings shows that marriage is good for both adults and 
children. Indeed, children reared in female-headed families are 
more likely to fail in school, be arrested, have children 
outside marriage, and go on welfare themselves. Thus, programs 
that work directly with poor fathers and that emphasize 
marriage, parenting, and employment may be able to have some 
impact on both the number of children being reared in single-
parent families and, where marriage is not a possibility, to 
strengthen the relationship between single fathers and their 
children, including through the payment of child support. In 
drafting this legislation, the Committee also is aware that the 
welfare reform legislation of 1996, and indeed most Federal and 
State social programs, are aimed primarily at helping single 
mothers. The Fathers Count Act specifically extends a public 
commitment to low-income fathers by designing programs that 
attempt to help fathers improve their financial independence 
and strengthen their ability to support a family.

                               1. Purpose

Present law

    No provision.

Explanation of provision

    The purposes of the Fatherhood Grant Programs are to:
          (1) Promote marriage through counseling, mentoring, 
        disseminating information about the advantages of 
        marriage, enhancing relationship skills, teaching how 
        to control aggression, disseminating information on the 
        causes and treatment of domestic violence and child 
        abuse, and other methods;
          (2) Promote successful parenting through counseling, 
        mentoring, disseminating information about good 
        parenting practices, training parents in money 
        management, encouraging child support payments; 
        encouraging regular visitation between fathers and 
        their children, and other methods; and
          (3) Help fathers and their families avoid or leave 
        cash welfare by improving their economic status by 
        providing work first services, job search assistance, 
        job training, subsidized employment, career-advancing 
        education, job retention, job enhancement, and other 
        methods.

Reason for change

    The approach taken by the Committee in this legislation is 
to fund demonstration projects to determine the extent to which 
model programs can help reverse the negative impacts of single-
parent families on both adults and children. The most 
straightforward solution to these negative impacts is to 
increase the incidence of marriage. Whether marriage occurs or 
not, a second approach to reducing the problems associated with 
single-parent families is to promote the involvement of single 
fathers with their children. Even if fathers do not live with 
their children, they still have a responsibility to participate 
in the child's rearing and to work as a team with the mother to 
provide a solid foundation for the child's development. An 
important part of the father's responsibility is the provision 
of economic support. Since many poor fathers have a weak and 
sporadic connection to the labor force, programs should also 
aim to increase both the number of employed fathers and the 
work skills of employed fathers so they can qualify for higher 
paying jobs. The Committee selected these three goals--
increased marriage, better parenting (including payment of 
child support), economic improvement--because they all can 
contribute in fundamental ways to solving the problems 
associated with single-parent families.

                          2. Fatherhood Grants

a. Applications

Present law

    No provision.

Explanation of provision

    An entity desiring to carry out a project may submit to the 
Secretary an application that contains the following:
          (1) A description of the project and how the project 
        will be carried out;
          (2) A description of how the project will address all 
        three purposes;
          (3) A commitment that the project will enroll 
        individuals who are the father of a child who is, or in 
        the past 24 months has been, a recipient of benefits 
        from the Temporary Assistance for Needy Families or the 
        Welfare-to-Work programs or a father or expectant or 
        married father with income below 150 percent of the 
        poverty line after paying court-ordered child support; 
        and
          (4) A commitment that the project will obtain support 
        from non-Federal sources (including in-kind 
        contributions) equal in value to 20 percent of the 
        grant. The Secretary may reduce the match requirement 
        to as low as 10 percent if the project demonstrates it 
        has limited ability to raise funds or obtain resources. 
        States cannot use Federal dollars or State dollars 
        counted toward their maintenance of effort requirement 
        in the Temporary Assistance for Needy Families program 
        as matching funds for the Fatherhood Program.
          (5) A commitment that the project will make available 
        to each participant education about domestic violence 
        and child abuse treatment and prevention, alcohol, 
        tobacco and other drugs and the effects of using such 
        substances, and HIV/AIDS.

Reason for change

    The Committee expects that entities wishing to conduct 
fatherhood projects will submit applications that provide 
thorough information on how many fathers (and in some cases, 
mothers) will be enrolled, how they will be recruited, how long 
they will be enrolled, the specific types of activities in 
which they will participate, the type of staff and facilities 
that will be required to conduct the project, the types of 
private and public organizations that will participate in the 
project, and other information deemed necessary by the 
Secretary. Sponsoring entities are expected to make a 
substantial commitment either in cash or in kind to the conduct 
of the project. However, we are aware that some sponsoring 
entities, especially those supported by community-based 
organizations in poor areas, may have difficulty raising money 
or resources to provide the required match. Thus, we are 
providing authority to the Secretary to reduce the match to as 
low as 10 percent if the entity sponsoring the project presents 
adequate justification in its application. Because projects can 
count in-kind contributions such as volunteer time (which 
should be valued at the typical wage for work of that type in 
the local area) and use of donated materials and facilities, we 
believe most projects should be able to accumulate the 
resources needed to provide the necessary match. Sponsoring 
entities are expected to make a commitment that projects will 
include information about domestic violence and child abuse 
treatment and prevention, alcohol, tobacco, and other drugs, 
and HIV/AIDS using a wide variety of methods and approaches to 
these topics.

b. Consideration of Applications by Interagency Panel

Present law

    No provision.

Explanation of provision

    A 10-member panel is established to review applications and 
make recommendations to the Secretary regarding which 
applicants should be awarded grants. The bipartisan panel is 
appointed by the Administration and by Congress. Panel members 
serve without compensation, and the Panel is terminated on 
October 1, 2001. Appointments for the panel are made by the 
Secretary (2 appointments), the Secretary of Labor (2), the 
Chairman of Ways and Means (2), the Ranking Member of Ways and 
Means (1), the Chairman of the Committee on Finance (2), and 
the Ranking Member of the Committee on Finance (1).

Reason for change

    Given the bipartisan support for this legislation, and the 
substantial agreement on the purposes and methods that should 
be used to increase the involvement of poor fathers in the 
lives of their children and the children's mothers, the 
Committee is expecting that individuals selected to review 
project applications will work together on a harmonious basis. 
Those in the Administration and Congress making the selections 
for members of the Panel should attempt to select individuals 
who have demonstrated the ability to work together with 
colleagues in a cooperative manner and who have knowledge or 
experience in one or more areas including fatherhood projects, 
programs for the poor, program administration, program 
research, or programs of domestic violence prevention and 
treatment.

c. Rules Governing Grants

            (1) Timing and Nondiscrimination

Present law

    No provision.

Explanation of provision

    The Panel will be appointed by April 1, 2001 and will 
select projects to recommend to the Secretary for funding under 
the Title I Fatherhood Grant Program by October 1, 2001. The 
projects would begin on or after October 1, 2001 and would be 
funded at $140 million over four years. Mothers are eligible 
for services on the same basis as fathers under the Fatherhood 
Grant Program.

Reason for change

    The Committee realizes that the Panel will be operating on 
a tight schedule. However, the gravity of the problems being 
addressed by the fatherhood projects should provide the 
motivation needed to ensure that Congress and the 
Administration make Panel appointments in a timely fashion and 
that the Secretary move expeditiously to bring the Panel 
together and to provide it with the support needed to function 
efficiently and effectively. The Panel will recommend $140 
million in projects to the Secretary, but the number of 
projects funded and the amount of money per project is left 
entirely to the discretion of the Panel and the Secretary. The 
justification for this approach is that decisions will hinge in 
major part on the number and quality of project applications 
submitted. Only by examining the entire pool of applications 
can good decisions be made about which ones to fund and at what 
level. Congress intends to leave the Panel and the Secretary 
with a great deal of discretion over which projects to select, 
how many to select, and at what particular level of funding.
            (2) Preferences

Present Law

    No provision.

Explanation of provision

    Preference must be given to projects:
          (1) That include policies to encourage payment of 
        child support such as having agreements with the State 
        child support agency that the State will cancel child 
        support arrearages owed by the father to the State in 
        proportion to the length of time the father pays child 
        support or resides with the child (unless the father 
        has been convicted of a crime involving domestic 
        violence or child abuse), helping fathers improve their 
        credit rating, and helping fathers arrange visitation 
        (unless it would be unsafe);
          (2) That have written agreements of cooperation with 
        other agencies, including the State or local Temporary 
        Assistance for Needy Families program, the Workforce 
        Investment Board, and the State or local child support 
        enforcement agency; community-based domestic violence 
        programs, and the State or local child protection 
        program;
          (3) That enroll a high percentage of participants 
        within 6 months before or after the child's birth;
          (4) That have a clear and practical plan for how 
        fathers will be recruited.

Reason for change

    In earlier drafts of this legislation, we included more 
requirements and fewer preferences to guide the selection of 
projects. But based on testimony at our hearing and other 
communications provided to the Committee, we have moved away 
from all but one requirement (see below) and adopted instead 
the approach of requiring the Panel and the Secretary to 
provide a preference for projects that display any or all of 
four characteristics. The Committee agrees on a bipartisan 
basis that each of these characteristics are exceptionally 
important to the successful operation of fatherhood projects. 
However, we are concerned that requiring projects, or a certain 
percentage of projects, to meet these requirements has the 
potential to greatly reduce the number of projects that could 
qualify for participation. The Committee hopes to attract a 
wide variety of entities to submit applications, including 
community-based entities that may not have extensive experience 
in meeting Federal requirements. In short, we face a trade off 
between lots of requirements on the one hand and attracting 
many and varied entities able to meet the requirements. The 
compromise we reached is to convert requirements to preferences 
and rely on the Panel and the Secretary to use good judgment in 
selecting projects that will maximize both variety of 
sponsoring entities and projects that are consistent with 
Congressional preferences.
    The four specific preferences we included reflect both 
research brought to the Committee's attention and testimony 
presented in our various hearings. In the past, child support 
enforcement agencies have functioned primarily to collect money 
from noncustodial parents, primarily fathers. Many of these 
agencies have adopted a very tough stance toward fathers who do 
not pay child support--a stance, we must point out, that is 
consistent with Federal child support statutes. But in recent 
years, a number of State and local child support agencies have 
started to work with fathers to help them solve problems that 
often interfered with their willingness and desire to pay child 
support. The 1996 welfare reform law facilitated this process 
by authorizing and funding Access and Visitation grants that 
are now being operated in every State. These projects have 
tried to help parents with custody and visitation issues by 
attempting to mediate agreements between mothers and fathers. 
Thus, the Committee wants the fatherhood projects to continue 
this movement toward cooperation between mothers, fathers, and 
child support agencies.
    In addition, we have received extensive testimony that 
young poor fathers often have substantial child support 
arrearages by the time they are 20 or 21 years of age. If they 
enroll in a project at that time with the intent of playing a 
more responsible role in the life of their family, they are 
greatly handicapped by a child support debt that can be many 
thousands of dollars. Given the low income these poor fathers 
typically earn, it is often demoralizing to face such a large 
burden of debt. We have been pleasantly surprised that 
advocates for both mothers and fathers seem to agree that if 
fathers will begin paying child support on a regular basis, the 
nonpayment of arrearages should not be a constant legal threat 
against the father. In fact, we strongly encourage projects 
that will actually forgive arrearages owed to the State in 
proportion to the length of time fathers pay child support or 
live with their children. The Committee strongly encourages 
applications that pursue additional methods of encouraging 
fathers to pay child support.
    This emphasis on child support demonstrates the importance 
of funding entities that have working relationships with other 
agencies. Not only would it be advantageous for fatherhood 
projects to work with child support agencies, but it also would 
be useful to work with other private and government 
organizations that can help achieve the purposes of this 
legislation. Coordination with the Temporary Assistance for 
Needy Families (TANF) program and with local Workforce 
Investment Boards, for example, can help projects take 
advantage of programs that have a strong record of helping 
people get jobs and improve their job skills. In most cases, 
fathers participating in the fatherhood projects would qualify 
for work and training benefits under these other programs, 
thereby allowing the fatherhood project to use their own 
resources to achieve other purposes. Despite the many 
advantages of coordination with these organizations, the 
Committee was made aware through testimony and other means that 
community-based projects often have difficulty making contact 
with and then establishing a working relationship with other 
agencies. For this reason, we do not want to make coordination 
a requirement of funding and thereby reduce the number of local 
entities that could qualify for funds.
    The third preference is for projects that begin near the 
time of the child's birth. Recent research, called to the 
attention of the Committee by many of our witnesses and 
summarized in the record of our April 27, 1999 Subcommittee on 
Human Resources hearing by Professor Sara McLanahan of 
Princeton University, shows that as many as half of the parents 
of children born outside marriage are living together at the 
time of the birth. Equally impressive, up to 80 percent of the 
parents say they are in a serious relationship that could lead 
to marriage. Given this surprising and encouraging situation, 
it seems to make great sense to try to work with these young 
couples to help them maintain and perhaps even improve their 
relationship by providing them with role models of marriage, 
helping them with finances and family planning, helping with 
parenting, and providing them with other types of assistance. A 
vital part of this approach would be to help the fathers 
improve their economic prospects so they can provide firm 
financial support to their family. The Committee has adopted 
the approach of encouraging projects to begin working with 
parents at the time of a nonmarital birth, but without imposing 
inflexible requirements on how many projects must adopt this 
strategy.
    Finally, we heard repeatedly in testimony that fatherhood 
projects have had some difficulty in identifying and recruiting 
fathers. Thus, we want the Panel and the Secretary to carefully 
scrutinize the recruitment plan of entities submitting 
applications and favor projects that have a well conceived plan 
and a record of attracting fathers to their programs.
            (3) Minimum Percentage of Recipients of Grant Funds to be 
                    Nongovernmental (Including Faith-Based) 
                    Organizations

Present law

    No provision.

Explanation of provision

    Of grant funds available for fatherhood matching grants, 
not less than 75 percent of the annual grant amount must be 
awarded to nongovernmental (including faith-based) 
organizations.

Reason for change

    The requirement that 75 percent of the funds must be spent 
on nongovernmental, including faith-based, organizations is one 
requirement the Committee is retaining from previous versions 
of the bill. Members of the Committee strongly believe that 
local organizations that have their roots in the community are 
best situated to gain the trust of fathers. The fact is that 
fatherhood programs are in the business of producing 
substantial changes in the behavior of fathers. To achieve this 
end, it is a requirement to gain the trust of fathers and to 
design programs that are tailored to the problems, needs, and 
traditions of local communities. In many cases, it may be 
possible to gain the benefits of community-based organizations 
and larger, more resource rich, and more experienced 
governmental organizations by designing cooperative projects in 
which community organizations and government agencies join 
forces to prepare grant proposals and conduct integrated 
projects.
            (4) Diversity of Projects

Present law

    No provision.

Explanation of provision

    In determining which applications are selected for funding, 
the Secretary must attempt to achieve balance among projects to 
be conducted by entities of different sizes, in differing 
geographical regions, in urban vs. rural areas, and in 
employing differing methods of achieving the purposes of this 
program.

Reason for change

    The Committee wants to be certain that small, community-
based organizations are not placed at a disadvantage in the 
competition for fatherhood funds under this legislation. 
Because large entities with big budgets and government agencies 
usually have an advantage in grant competitions, we want to 
take steps to be certain that a major portion of grant funds 
under this legislation supports community-based organizations. 
We are hopeful that prospective grantees will capture the 
advantages offered by both the smaller and less formal 
community organizations and those of bigger, better-connected, 
and more experienced governmental organizations by presenting 
collaborative projects. The Committee also believes it is 
important to have several projects that serve rural areas.
            (5) Payment of Grant in Four Equal Annual Installments

Present law

    No provision.

Explanation of provision

    During the four fiscal years of each project awarded a 
grant, the Secretary must provide to each project an amount 
equal to \1/4\th of the grant amount.

Reason for change

    Regular payments will ensure that projects can pay their 
bills in a planned and consistent fashion.

d. Use of Funds

            (1) In General

Present law

    No provision.

Explanation of provision

    Projects must use funds in accord with the application 
request, the requirements of this section, and the regulations 
prescribed in this section. Funds may be used to support 
community-wide initiatives to achieve the purposes of this 
part. Funds may not be used for court proceedings on matters of 
child visitation or child custody or for legislative advocacy 
but may be used to provide general education or information 
about access and visitation issues.

Reason for change

    All projects receiving funds under the fatherhood grant 
program must operate in accord with the provisions established 
by their grant proposal and by the statute and the regulations 
that govern this program. The Committee wants to emphasize that 
all projects must address all three purposes of the 
legislation. We do not expect that all projects will provide 
equal weight to all three purposes, but the activities 
described in their application and their actual use of 
resources must reflect the projects' commitment to achieving 
all three purposes.
            (2) Nondisplacement

Present law

    The Temporary Assistance for Needy Families program 
prohibits participants who are engaging in a work activity from 
filling a job vacancy if any individual is on layoff from the 
same or an equivalent job with that employer or if the employer 
has terminated the employment of any regular employee to create 
the vacancy.

Explanation of provision

    The worker nondisplacement provision from the Temporary 
Assistance for Needy Families program, slightly modified, is 
applied to the Fatherhood Grant Program.

Reason for change

    The purpose of including nondisplacement language is to 
ensure that current workers will not be replaced by workers 
participating in the fatherhood program.
            (3) Rule of Construction

Present law

    No provision.

Explanation of provision

    Fathers participating in grant projects are not required by 
Federal law to leave the project if their economic 
circumstances change.

Reason for change

    Once fathers have enrolled in the fatherhood program, they 
should not be required to leave the program if their economic 
circumstances improve. Particularly because a major program 
goal is to increase fathers' employment and income, it would 
make little sense to reward successful fathers by dropping them 
from the program if they are no longer poor. In many cases, 
even fathers who have improved their income may need assistance 
with the other purposes of this project. In addition, fathers 
economic circumstances may fall just as quickly as they 
improved.
            (4) Rule of Construction on Marriage

Present law

    No provision.

Explanation of provision

    The Secretary is not given the authority to define marriage 
for purposes of this section.

Reason for change

    The Committee wishes to leave the definition of marriage to 
the States, localities, and individual projects.
            (5) Penalty for Misuse of Grant Funds

Present law

    No provision.

Explanation of provision

    Projects that spend money for unauthorized purposes must 
forfeit all their remaining funds and remit to the Secretary an 
amount equal to the amount misused. In addition, the entity is 
ineligible for future grants.

Reason for change

    There is no justification for misusing funds from the 
fatherhood grant program. Thus, any project that violates the 
Use of Funds requirements must repay all the money they 
misspent, remit all unused funds to the Secretary, and be 
ineligible for further participation in the program.
            (6) Remittance of Unused Grant Funds

Present law

    No provision.

Explanation of provision

    Any funds remaining at the end of the 5th fiscal year 
ending after the initial grant award must be returned to the 
Secretary.

Reason for change

    We are providing projects with four years of funding and a 
fifth year to spend any money that remains after the four years 
of project funding. It is our hope that entities funded by the 
fatherhood grant program may be able to use the fifth year as a 
transition to securing State, local, and private funds to 
continue their projects.

e. Authority of Agencies to Exchange Information

Present law

    States must have in place a series of privacy protections 
in their child support enforcement program. These include 
safeguards against unauthorized disclosure of information, 
including the release of addresses of individuals involved in 
the child support enforcement program.

Explanation of provision

    State and local agencies administering the TANF program, 
the Welfare-to-Work program, and the Child Support Enforcement 
program may share information on fathers to determine their 
eligibility to participate in programs and to contact eligible 
fathers (subject to applicable privacy laws).

Reason for change

    The Committee has received extensive information from State 
and local agencies conducting Welfare-to-Work programs as well 
as from private entities conducting fatherhood programs that it 
is often difficult to obtain information from government 
agencies. For projects trying to work with fathers of children 
on welfare, a major goal is to identify and contact these 
children's fathers so they can be invited to participate. For 
this reason, the Committee is granting authority to the TANF 
program, the Welfare-to-Work program, and the Child Support 
Enforcement program to grant only the name, address, and 
telephone number of fathers for participation in projects under 
this legislation and under the Welfare-to-Work program. Thus, 
we are carefully limiting access to only the information needed 
to contact fathers and then only to programs that are working 
directly with fathers. Moreover, all applicable privacy laws 
apply to this provision, thereby insuring that any government 
agency and any individual violating these terms is subject to 
penalties.

f. Evaluation

Present law

    No provision.

Explanation of provision

    The Secretary must reserve $6 million to conduct scientific 
evaluations of fatherhood projects funded under this title and 
under Subtitle B: Projects of National Significance. Evaluation 
funds can be spent throughout the 6 years of the fatherhood 
grants (2001-2005) plus one additional year (2006). The 
evaluation must assess, among other outcomes, effects of the 
projects on marriage, parenting, employment, earnings, payment 
of child support, and domestic violence.

Reason for change

    A major goal of the fatherhood grant program is to discover 
whether high quality programs can increase marriage, improve 
parenting, and increase the employment or income of fathers. 
Thus, we are providing the Secretary with substantial resources 
to conduct a scientific evaluation of the best programs to 
determine whether they can in fact effect these and other 
outcomes of interest and, if so, what types of projects and 
activities are most likely to produce these outcomes. Funds for 
the evaluation begin the year before projects actually start in 
2001 and can be spent throughout the life of both waves of 
fatherhood projects and then for one year afterward. It is the 
hope of the Committee that HHS or its contractor will proceed 
by studying fatherhood programs funded both by Subtitle A and 
Subtitle B of Title V of this legislation, selecting the best 
projects for evaluation, working with the projects to create 
random assignment studies where possible, and then collecting 
outcome information throughout the life of the project and 
perhaps even after fathers leave the project. This approach 
will ensure a maximum of information for Congress and others to 
determine whether the fatherhood projects have been effective.

g. Regulations

Present law

    No provision.

Explanation of provision

    The Secretary must prescribe such regulations as may be 
necessary to carry out this section.

Reason for change

    If the Secretary deems that regulations are necessary to 
carry out the statutory provisions of this legislation, 
Congress provides her with the authority to create such 
regulations. Providing the Secretary with this authority is 
necessary to ensure the smooth implementation of social 
programs enacted by Congress.

h. Limitation on Applicability of Other Provisions of this Part

Present law

    No provision.

Explanation of provision

    Most provisions of the Temporary Assistance for Needy 
Families program, such as use of funds, administrative 
provisions, work requirements, and penalties, do not apply to 
fatherhood grant programs.

Reason for change

    Although closely connected with the welfare provisions of 
the TANF block grant, of which the fatherhood program is a 
part, the Committee realizes that the fatherhood projects are 
very different than the TANF welfare program, especially in 
that the fatherhood program does not provide cash welfare 
benefits to its participants. Thus, we are granting substantial 
flexibility to the Secretary and to the individual projects in 
determining how the fatherhood program should operate.

i. Funding

Present law

    No provision.

Explanation of provision

    A total of $150,000 is appropriated in 2001 to pay for 
operation of the Interagency Panel. For the Fatherhood Grant 
Program, a total of $140 million is appropriated for fiscal 
years 2002 through 2005. For the evaluation, $6 million is made 
available for the years 2001 through 2006.

Reason for change

    The Committee is allocating funds totaling $140 million for 
the fatherhood grant program. This amount is believed to be 
sufficient to mount several dozen projects throughout the 
nation, in both urban and rural areas, to determine which 
fatherhood programs and approaches are most effective in 
achieving the purposes of promoting marriage, improving 
parenting, and increasing fathers' employment and earnings. A 
total of $150,000 is set aside for the Panel, primarily to pay 
for travel expenses for the Panel to meet in some central 
location. The Committee believes the Panel should need one or 
two meetings to determine its recommendations to the Secretary. 
We assume that members of the Panel will be organized and 
provided with materials by the Secretary before meeting and 
that projects will be assigned to individual members of the 
Panel for review in order to facilitate efficient decisions 
about funding. The $6 million in funding set aside for the 
evaluation is assumed, based on similar evaluations in the 
past, to be adequate to conduct the type of evaluation outlined 
above.

j. Applicability of Charitable Choice Provision of Welfare Reform

Present law

    Section 104 of the Personal Responsibility and Work 
Opportunity Reconciliation Act of 1996, often referred to as 
``charitable choice'', authorizes States to administer and 
provide family assistance services through contracts with 
charitable, religious, or private organizations. Under this 
provision religious organizations are eligible on the same 
basis as any other private organization to provide assistance 
as contractors as long as their programs are implemented 
consistent with the Establishment Clause of the Constitution. A 
religious organization administering the program may not 
discriminate against beneficiaries on the basis of religious 
belief or refusal to participate in a religious practice. 
States must provide an alternative provider for a beneficiary 
who objects to the religious character of the designated 
organization.

Explanation of provision

    The charitable choice provision of the 1996 welfare reform 
law applies to fatherhood programs funded under this section.

Reason for change

    The Committee believes that religious organizations have an 
important role to play in the nation's social policy. We oppose 
any action that would provide an advantage in funding to faith-
based organizations, but it seems unwise to eliminate them from 
the competition between entities that can design and conduct 
the best projects to promote marriage, promote better 
parenting, and help fathers increase their earnings. In fact, 
promoting marriage and better parenting, as well as solving 
some of the barriers to employment such as addictions, are 
issues that would seem to be reasonable for churches and other 
faith-based organizations to address. The goal of the Committee 
in adopting this provision is simply to level the playing field 
so that faith-based entities can have their applications 
considered on the same basis as secular entities.

        subtitle b. fatherhood projects of national significance

         Sec. 511. Fatherhood Projects of National Significance

                       1. National Clearinghouse

Present law

    No provision.

Explanation of provision

    To establish a National Clearinghouse on Fatherhood, the 
Secretary must make a $5 million grant to a nationally 
recognized nonprofit fatherhood promotion organization with at 
least four years experience in disseminating a national public 
education campaign and in providing consultation and training 
to community based organizations interested in implementing 
fatherhood programs. The National Clearinghouse will:
          (1) Develop a media campaign that encourages the 
        appropriate involvement of both parents in the life of 
        their children, and encourages responsible fatherhood 
        and marriage;
          (2) Collect, evaluate, and disseminate information to 
        other States about media campaigns promoting marriage 
        and fatherhood programs;
          (3) Develop and disseminate materials to help young 
        adults manage their money, plan for future 
        expenditures; and
          (4) Compile and distribute a list of all the sources 
        of public support for education and training for young 
        adults.
          (5) Provide information on domestic violence and 
        child abuse prevention and treatment.

Reason for change

    The Committee hopes to establish a national movement of 
fatherhood projects addressed to helping young, especially 
poor, fathers become better husbands, parents, and providers. 
In addition to establishing a network of demonstration 
programs, it is our intent to initiate a national Clearinghouse 
that will produce, collect, and distribute information about 
fatherhood and fatherhood programs to State and local projects 
throughout the nation. Thus, we are providing funds for 4 years 
of operation for such a clearinghouse. In addition to 
collecting and distributing materials, we are directing the 
Clearinghouse to create a list of the education benefits 
provided by the State and Federal governments to young adults 
and adults paying for education and training beyond or in lieu 
of high school. The Committee has been impressed with the large 
number of programs that provide such education and training 
benefits, and with the near certainty that most young people do 
not know these benefits exist or how to gain access to them. 
Hence our requirement that the Clearinghouse produce and widely 
distribute the list. It is the expectation of the Committee 
that the Clearinghouse will provide most material free of 
charge to those who need it. However, it may be appropriate for 
some consumers of Clearinghouse material to pay fees. The 
Committee expects the Secretary to determine circumstances 
under which fees would be appropriate and the level of fees the 
Clearinghouse could charge.

                    2. Multicity Fatherhood Projects

a. In General

Present law

    No provision.

Explanation of provision

    The Secretary must award a $5 million grant to each of two 
nationally recognized nonprofit fatherhood promotion 
organizations to conduct projects aimed at achieving the 
purposes of this legislation (promoting marriage, promoting 
better parenting, and increasing fathers' income).

Reason for change

    The Committee wants to ensure that some experienced and 
tested fatherhood organizations mount demonstration programs in 
major cities. Through our hearings and research, we have found 
that there are several organizations that have sponsored 
fatherhood programs in inner-city areas and that have 
experience working with child support enforcement and other 
government agencies. We believe these organizations have the 
capacity and experience to design and conduct fatherhood 
programs that have a good chance of producing important 
outcomes. Thus, we are directing the Secretary to fund two such 
organizations to conduct model programs in three cities. The 
Committee also expects these model programs to provide 
information about their program to the Clearinghouse so that 
their programs and products can be disseminated throughout the 
nation.

b. Requirements

Present law

    No provision.

Explanation of provision

    To qualify for consideration, an entity submitting a grant 
application must have:
          (1) Several years experience designing and conducting 
        fatherhood programs;
          (2) Experience simultaneously conducting fatherhood 
        projects in more than one major city and in 
        coordinating these programs with local government 
        agencies and private, nonprofit agencies including 
        State or local agencies responsible for child support 
        enforcement and agencies responsible for employment 
        services;
          (3) A grant application that provides for projects to 
        be conducted in three major cities; and
          (4) At least one of these organizations must have 
        extensive experience in using married couples to 
        deliver their program in the inner-city.

Reason for change

    To create the greatest chance of having projects that 
produce measurable impacts on marriage, parenting, or fathers 
income, we are establishing a fairly rigorous set of standards 
for projects that may submit an application and be approved by 
the Secretary. The Committee believes this set of standards 
will result in the selection of highly competent organizations.

         3. Payment of Grants in Four Equal Annual Installments

Present law

    No provision.

Explanation of provision

    For each of fiscal years 2002 through 2005, the Secretary 
must provide to each project awarded a grant an amount equal to 
\1/4\th of the grant amount.

Reason for change

    Paying the grant in four equal parts assures that projects 
can plan the flow of funds into their budget while reducing the 
likelihood that projects will spend most of their funds before 
the year ends. In addition, quarterly payments will allow the 
recovery of more money if projects should lose their grant 
because of unauthorized expenditures.

                               4. Funding

Present law

    No provision.

Explanation of provision

    For each of fiscal years 2002 through 2005, $3,750,000 is 
appropriated for grants for multicity projects.

Reason for change

    Based on our understanding of the magnitude of the tasks at 
hand, as well as our review of the budget of some fatherhood 
projects, we assume that the national Clearinghouse can be 
operated for a little more than $1 million per year and each of 
the two multicity projects can be operated for a little more 
than $400,000 per city per year or about $1.25 million per 
project per year. The total cost of all three projects will be 
$3.75 million per year or $15 million over 4 years.

                        Title VI. Miscellaneous

            Sec. 601. Change Dates for Abstinence Evaluation

Present law

    Federal law required that the HHS Secretary reserve $3 
million for fiscal year 1998 and ``the amount so specified'' 
for fiscal year 1999 to evaluate Abstinence Education programs 
directly or through grants, contracts or interagency 
agreements. Funds must be spent by the end of fiscal year 2001.

Explanation of provision

    Changes the date by which funds for the abstinence 
education evaluation must be spent from the end of fiscal year 
2001 to the end of fiscal year 2005.

Reason for change

    The abstinence education projects are now being implemented 
and HHS's evaluation contractor is in the final process of 
selecting sites to participate in the evaluation. Given that 
data collection is expected to begin in the spring and summer 
of 2000, allowing data collection for the evaluation to proceed 
until only 2001 would not allow the Committee and other 
interested parties to have information about long-term impacts 
of the abstinence education programs. Because long-term impacts 
on attitudes and sexual behavior is the most important 
information to come from the evaluation, the Committee is 
extending use of evaluation funds through 2005. However, no 
additional money is being authorized for the evaluation.

        Sec. 602. Report on Undistributed Child Support Payments

Present law

    No provision.

Explanation of provision

    Within 6 months of enactment, the Secretary must submit to 
the Committees on Ways and Means and Finance a report on the 
procedures States use to locate custodial parents for whom 
child support has been collected but not yet distributed due to 
a change of address. The report must include an estimate of the 
amount of such undistributed child support payments. The 
Secretary must include recommendations on actions that should 
be taken at the State or Federal level to expedite the payment 
of undistributed child support.

Reason for change

    The Committee has received both testimony and written 
correspondence about child support payments that should be 
distributed to mothers and children that are held by the State 
for long periods. Apparently, States hold this money because 
they do not have a current address. The Committee is greatly 
concerned about this problem because the major goal of the 
child support program is to provide money to custodial parents 
and their children. Thus, we are directing the Secretary to 
carefully examine this problem and its causes, to estimate the 
amount of money that is undistributed and the length of time 
for which it is undistributed, and to make recommendations 
about Federal or State policies that could be useful in 
attacking this problem.

 Sec. 603. Use of New Hire Information to Assist in Administration of 
                   Unemployment Compensation Programs

Present law

    The 1996 welfare reform law (P.L. 104-193) required all 
employers in the nation to report basic information on every 
newly-hired employee to the State. States were in turn required 
to collect all this information in the State Directory of New 
Hires, to use this information to locate noncustodial parents 
who owe child support and to send a wage withholding order to 
their employer, and to periodically (within 3 business days) 
report all information in their Directory of New Hires to the 
Federal government. Information in the State Directory of New 
Hires is used by State Employment Security Agencies (the agency 
that operates the State unemployment compensation program) to 
match against unemployment compensation records to determine 
whether people drawing unemployment compensation benefits are 
actually working.

Explanation of provision

    State Employment Security Agencies are authorized to gain 
access to information in the Federal Directory of New Hires.

Reason for change

    The Committee has been informed by numerous States that 
matching New Hire data against unemployment compensation 
records is very successful at detecting individuals who are 
both drawing unemployment compensation benefits and working. 
Because the New Hire data is reported to the State so quickly, 
and because the data matches are performed so quickly, work by 
individuals drawing unemployment compensation is quickly 
detected and payments are stopped, thereby saving considerable 
sums of public money. However, many States have residents who 
are drawing unemployment benefits from a previous job in their 
State but then obtain work in an adjoining State. Because 
States have access to the New Hire data only in their own 
State, and not to the Federal Directory of New Hires, States 
are not able to detect these cases. According to the 
Congressional Budget Office, allowing States to have access to 
the National Directory of New Hires would allow this fraud to 
be detected and would save $60 million over 5 years.

                    Sec. 604. Immigration Provisions

 1. Nonimmigrant Aliens Ineligible to Receive Visas and Excluded from 
               Admission for Nonpayment of Child Support

Present law

    No provision.

Explanation of provision

    Any non-immigrant alien is inadmissable to the United 
States if he owes child support arrears in excess of $2,500 and 
he has not entered into an approved payment plan. This 
requirement can be waived if there is a request from the court 
or agency with jurisdiction over the order, or if the Attorney 
General determines humanitarian or public interests would be 
served by such a waiver.

Reason for change

    Considering that United States citizens are subject to the 
suspension of their passports for the failure to pay court-
ordered child support, the Committee believes a similar 
restriction should apply to non-citizens seeking access to the 
United States when they owe excessive child support arrears to 
U.S. citizens. Furthermore, the Committee does not believe that 
individuals from foreign nations should be allowed to benefit 
commercially in the United States while they refuse to live up 
to their moral and legal obligations to U.S. families. 
Therefore, the bill prevents certain immigrants entrance into 
the U.S. if they owe more than $2,500 in child support arrears 
(the same amount triggering passport suspension for U.S. 
citizens). This restriction does not apply to permanent legal 
residents, since for that population there may be more 
effective means to enforce child support orders, such as direct 
wage withholding from their American employers.

   2. Authorization to Serve Legal Process in Child Support Cases on 
                        Certain Arriving Aliens

Present law

    No provision.

Explanation of provision

    Immigration officers are authorized to serve any alien who 
is applying for admission to the U.S. with court orders or 
summons regarding the applicant's obligation to pay child 
support.

Reason for change

    In order to make the Committee's provision on child support 
payments by aliens effective, the alien must be presented with 
court documents that clarify his legal obligation at the 
earliest moment. Because of the difficulty of serving papers on 
people who live in other countries, it is necessary to serve 
the papers as soon as the alien enters the U.S. Immigration 
officials are in a strong position to provide this service.

  3. Authorization to Share Child Support Enforcement Information to 
               Enforce Immigration and Naturalization Law

Present law

    No provision.

Explanation of provision

    When a State child support agency demonstrates that a non-
immigrant alien owes in excess of $2,500 in child support 
arrears, the Secretary of HHS may alert the Secretary of State 
and the Attorney General so they can undertake enforcement 
activities.

Reason for change

    The Committee's strategy for obtaining child support 
payments from aliens requires that States, which keep extensive 
information on child support payments, alert the Federal 
government when aliens fall more than $2,500 behind in their 
payments. Thus, we minimize confusion among the States by 
having them report these cases to the Secretary of HHS, the 
organization to which they routinely report child support data. 
The Secretary then alerts the State Department which in turn 
begins the process of rescinding or refusing to issue 
passports. The Attorney General and the Secretary of State may 
also learn about these cases in the course of carrying out 
other responsibilities. Thus, the Committee provision also 
authorizes them to report the cases the Secretary of HHS for 
action

Sec. 605. Correction of Errors in Conforming Amendments in the Welfare-
              to-Work and Child Support Amendments of 1999

Present law

    Not applicable.

Explanation of provision

    Two technical corrections are made in the statute 
authorizing funds for the Welfare-to-Work program.

Reason for change

    The Committee is simply using this legislation as a vehicle 
to correct technical drafting mistakes in previous legislation.

Sec. 606. Elimination of Set-Aside of Welfare-to-Work Funds for 
        Successful Performance Bonus

Present law

    The Welfare-to-Work program includes a set-aside of $100 
million from FY1999 welfare-to-work funds (to be awarded in 
fiscal year 2000) to provide a bonus to States with high 
performance. In 1999, Congress reduced the bonus fund from $100 
million to $50 million.

Explanation of provision

    The Welfare-to-Work high performance bonus fund is 
repealed.

Reason for change

    The Welfare-to-Work program was enacted in 1997 to provide 
additional funds for States and localities to mount programs to 
help the most disadvantaged parents enter the workforce. 
However, because the definition of ``disadvantaged'' in the 
1997 legislation was very restrictive, States and localities 
had a difficult time finding and enrolling participants. Thus, 
the Welfare-to-Work program got off to a shaky and uneven 
start. For this reason, and because the Temporary Assistance 
for Needy Families block grant of which the Welfare-to-Work 
program is a part, already has a $200 million per year 
performance bonus, in 1999 Congress decided to use $50 million 
of the $100 million performance bonus in the Welfare-to-Work 
program to provide States with funds to expand their programs 
for young adults leaving foster care. The Committee believes 
that the remaining $50 million can be more productively used to 
help finance this expansion of child support funds going to 
mothers leaving welfare.

Sec. 607. Increase in Payment Rate to States for Expenditures for Short 
        Term Training of Staff of Certain Child Welfare Agencies

Present law

    The Federal government provides an enhanced match rate of 
75 percent for funds spent for child welfare training of 
personnel who work in the public sector and for personnel 
working in private agencies that provide institutional care. 
Private agencies that provide child protection services (other 
than institutional care) are not covered by the 75 percent 
rate.

Explanation of provision

    The legislation extends the 75 percent Federal matching 
rate to personnel working in private agencies that provide 
child welfare services if the agencies are approved or licensed 
by the State.

Reason for change

    There is nearly universal agreement that training of 
personnel is one of the most effective ways to improve the 
performance of child protection agencies in achieving the goals 
of improving child safety, improving the quality of services to 
children and families, and improving permanency of placements. 
Because so many states contract with private agencies to 
provide high quality child protection services, the Committee 
felt it imperative to encourage better and more extensive 
training of child protection workers employed by these private 
agencies.

                       Title VII. Effective Date

                        Sec. 701. Effective Date

Present law

    No provision.

Explanation of provision

    With some exceptions noted above, the provisions of this 
Act take effect on October 1, 2001. However, if a provision 
requires State legislation to be implemented (other than the 
appropriation of funds), the State is given additional time to 
implement the provision.

Reason for change

    The date of October 1, 2001 will give Federal and State 
officials at least 1 year to prepare to implement selected 
provisions of this legislation. Most of the more complex 
provisions, especially those expected to have serious fiscal 
impact on the States, have effective dates after October 1, 
2001. Given the fact that many State legislatures have short 
sessions each year, and that a few State legislatures meet only 
every second year, Congress traditionally extends effective 
dates if implementing a given provision would require State 
legislative action. The Committee continues that tradition in 
this bill, except for provisions that require only a State 
appropriation of money for implementation.

                      III. VOTES OF THE COMMITTEE

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, the following statements are made 
concerning the votes of the Committee on Ways and Means in its 
consideration of the bill, H.R. 4678.

                       Motion to Report the Bill

    The bill, H.R. 4678, as amended, was ordered favorably 
reported by voice vote on July 19, 2000, with a quorum present.

                     IV. BUDGET EFFECTS OF THE BILL

               A. Committee Estimate of Budgetary Effects

    In compliance with clause 3(d)(2) of rule XIII of the Rules 
of the House of Representatives, the following statement is 
made:
    The Committee agrees with the estimate prepared by the 
Congressional Budget office (CBO) which is included below.

    B. Statement Regarding New Budget Authority and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee states that the 
Committee bill results in direct spending of $733 million over 
5 years and a decrease in revenues of $59 million over 5 years. 
This amount is accommodated by the allocation to the Committee 
under the Budget Resolution.

      C. Cost Estimate Prepared by the Congressional Budget Office

    In compliance with clause 3(c)(3) of rule XIII of the Rules 
of the House of Representatives requiring a cost estimate 
prepared by the Congressional Budget Office (CBO), the follow 
report prepared by CBO is provided.

               congressional budget office cost estimate

H.R. 4678--Child Support Distribution Act of 2000

    Summary: H.R. 4678 would make several changes to the child 
support enforcement program, including requiring the 
distribution to families of more collections from child support 
payments and the periodic updating of child support orders. 
Other provisions would establish a program of grants to promote 
responsible fatherhood, eliminate the welfare-to-work 
performance bonus to states, increase the federal matching rate 
for certain foster care training activities, and improve fraud 
detection procedures in the unemployment compensation program.
    CBO estimates that H.R. 4678 would reduce direct spending 
in 2001 and increase such spending in each year from 2002 to 
2010. The estimated net cost would be $733 million over five 
years and $3.3 billion over 10 years. It would also cause a 
reduction in revenues from unemployment taxes totaling $59 
million over five years and $144 million over the 10-year 
period. Consequently, CBO estimates that this bill would 
decrease the government's surplus by $792 million over the 
2001-2005 period and $3.4 billion over the 2001-2010 period. 
Because the bill would affect direct spending and revenues, 
pay-as-you-go procedures would apply.
    The bill's changes to the child support enforcement program 
may impose intergovernmental mandates on states because they 
may not have sufficient flexibility to alter their financial 
and programmatic responsibilities for that program to offset 
the costs of those changes. In total, losses to states as a 
result of the changes would exceed the annual threaholds 
established in the Unfunded Mandates Reform Act (UMRA)--$55 
million in 2000, adjusted annually for inflation. Other 
provisions of the bill would also affect state budgets, but 
those provisions would not be mandates as defined by UMRA, and 
in some cases, would provide additional assistance to states. 
The bill contains no private-sector mandates as defined in 
UMRA.
    Estimated cost to the Federal Government: The estimated 
budgetry impact of H.R. 4678 is shown in Table 1. The costs of 
this legislation fall within budget functions 500 (education, 
training, employment, and social services), 550 (health), and 
600 (income security).

                               TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF H.R. 4678
----------------------------------------------------------------------------------------------------------------
                                                             By fiscal year, in millions of dollars
                                               -----------------------------------------------------------------
                                                   2000       2001       2002       2003       2004       2005
----------------------------------------------------------------------------------------------------------------
                                                 DIRECT SPENDING

Spending Under Current Law:
    Child Support Administration..............      2,844      3,028      3,268      3,521      3,813      4,052
    Child Support Collections.................       -845       -825       -820       -860       -915       -965
    Food Stamps...............................     18,557     19,176     20,064     20,767     21,522     22,260
    TANF......................................     15,700     16,400     17,000     17,400     17,750     18,050
    Medicaid..................................    115,145    124,254    134,118    145,081    158,181    172,418
    Foster Care...............................      5,171      5,625      6,074      6,514      6,962      7,436
    Unemployment Compensation.................     21,522     22,726     24,258     26,539     28,804     30,587
    Welfare-to-Work Grants....................        660        885        540          0          0          0
    Fatherhood Grants.........................          0          0          0          0          0          0
                                               =================================================================
Proposed Changes:
    Child Support Administration..............          0          0         37         56         51         49
    Child Support Collections.................          0          0         64         93        124        129
    Food Stamps...............................          0          0        -11        -12        -13        -13
    TANF......................................          0          0         26         36         37         27
    Medicaid..................................          0          0         -5        -15        -20        -20
    Foster Care...............................          0          0         21         26         26         27
    Unemployment Compensation.................          0         -7        -10        -12        -15        -16
    Welfare-to-Work Grants....................          0        -25        -25          0          0          0
    Fatherhood Grants.........................          0          0         11         28         39         45
                                               -----------------------------------------------------------------
      Total...................................          0        -32        108        200        229        228
                                               =================================================================
Spending Under H.R. 4678:
    Child Support Administration..............      2,844      3,028      3,305      3,577      3,864      4,101
    Child Support Collections.................       -845       -825       -756       -767       -791       -836
    Food Stamps...............................     18,557     19,176     20,053     20,755     21,509     22,247
    TANF......................................     15,700     16,400     17,026     17,436     17,787     18,077
    Medicaid..................................    115,145    124,254    134,113    145,066    158,161    172,398
    Foster Care...............................      5,171      5,625      6,095      6,540      6,988      7,463
    Unemployment Compensation.................     21,522     22,719     24,248     26,527     28,789     30,571
    Welfare-to-Work Grants....................        660        860        515          0          0          0
    Fatherhood Grants.........................          0          0         11         28         39         45

                                               CHANGES IN REVENUES

Estimated Revenues............................          0          0         -4        -17        -19        -19
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: The estimated budgetary impact of H.R. 
4678, by provision, is shown in Table 2. Provisions with no 
estimated budgetary effect are excluded from the table. H.R. 
4678 would be effective October 1, 2001, except where otherwise 
noted.
    Distribution of More Child Support to Families.--Section 
101 would require the federal and state governments to share 
more child support collections with current and former 
recipients of Temporary Assistance for Needy Families (TANF), 
reducing the amount the federal and state governments recoup 
from previous TANF benefit payments. The bill would require 
states to implement the new policy by October 1, 2005, but 
would give states the option of implementing the policy sooner. 
CBO estimates that states with 20 percent of child support 
collections would adopt the new policy in 2002, states with 
another 20 percent of collections would adopt it by 2005, and 
the remainder would have the policy in place in 2006.
    Collections for Current TANF Recipients.--When a family 
applies for TANF, it assigns to the state any rights the family 
has to child support collections for the periods before and 
during the time it receives assistance. While the family 
receives assistance, the state uses any collections it receives 
to reimburse itself and the federal government for TANF 
payments.
    The bill would limit the amount that the family assigns to 
the state to the child support payments due during the period 
the family receives assistance. CBO projects that under current 
law the states will collect $1.2 billion in 2002 and $1.7 
billion in 2010 in child support payments on behalf of families 
receiving TANF assistance. H.R. 4678 would reduce those 
collections by 10 percent when fully implemented. Families 
would receive an additional $24 million in 2002, rising to $170 
million in 2010.
    Collections for Former TANF Recipients.--When a family 
ceases to receive public assistance, states continue to enforce 
the family's child support order. All amounts of child support 
collected on time are sent directly to the family. However, 
both the government and the family have a claim on collections 
of past-due child support: the government claims the support 
owed for the period when the family was on assistance, up to 
the amount of the assistance paid, and the family claims all 
other support. A set of distribution rules determines which 
claim is paid first when a collection is made. That order 
matters because, in many cases, past-due child support is never 
fully paid.
    Under current law, with two exceptions, the state pays the 
family all past-due support that was owed to the family before 
reimbursing itself for TANF benefits paid. The first exception 
is if the support is collected through the federal tax refund 
offset program. The second exception is past-due support that 
was owed, but not paid, during the time the family was on 
assistance, to the extent that the support owed exceeded the 
TANF benefits paid. This bill would remove those two exceptions 
so that all past-due support owed to the family would be paid 
to the family before the government reimburses itself for any 
previous benefit payments.
    These changes would give families more of the collections 
from the federal tax refund offset program. Under that program, 
the Internal Revenue Service intercepts tax refunds going to 
non-custodial parents who owe past-due child support, and pays 
them to custodial parents as child support. CBO projects that 
the government will collect $800 million from tax offsets on 
behalf of current and former welfare recipients in 2002 and 
that those collections will grow at about 7 percent a year. 
Based on data provided by federal and state child support 
officials, CBO estimates that two-thirds of those collections 
are on behalf of former recipients of assistance and that two-
thirds of those collections would go to families, instead of 
the government, under the bill. Families would receive an 
additional $70 million in 2002, rising to $590 million in 2010.
    H.R. 4678 would provide for the payment of other additional 
child support collections to certain families. Under current 
law, if a family has past-due child support from the period the 
family was on assistance that exceeds the total benefits paid 
to the family, then the family only receives those collections 
after the state has been fully reimbursed for welfare benefits 
paid. Giving those collections to families first would result 
in a 20 percent decline in the amount of collections the state 
retains on behalf of former recipients, after implementation of 
the tax offset policy. Based on 1999 report to the Congress by 
the Department of Health and Human Services, CBO estimates that 
families would receive an additional $30 million in 2002, 
rising to $180 million by 2010, as a result of this change.
    Federal Share of Collections.--Total new collections to 
families from the new distribution policy would be $124 million 
in 2002, rising to $940 million by 2010. The federal share of 
child support collections is 56 percent on average. Therefore, 
CBO estimates that the policies would result in reduced federal 
collections of $70 million in 2002, rising to $530 million by 
2010.

                                             TABLE 2.--FEDERAL BUDGETARY EFFECTS OF H.R. 4678, BY PROVISION
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                     By fiscal year, in millions of dollars
                                                      --------------------------------------------------------------------------------------------------
                                                         2000     2001     2002     2003     2004     2005     2006     2007     2008     2009     2010
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                     DIRECT SPENDING

Section 101: Distribution of Child Support
 Distribution of More Child Support to Families:
  Child Support Collections:
    Estimated Budget Authority.......................        0        0       70      110      150      160      415      440      470      500      530
    Estimated Outlays................................        0        0       70      110      150      160      415      440      470      500      530
  Food Stamps:
    Estimated Budget Authority.......................        0        0       -5       -5       -5       -5      -15      -15      -15      -15      -20
    Estimated Outlays................................        0        0       -5       -5       -5       -5      -15      -15      -15      -15      -20
  TANF:
    Estimated Budget Authority.......................        0        0        0        0        0        0        0        0        0        0        0
    Estimated Outlays................................        0        0       25       35       35       25       30       20       10        0        0
  Subtotal:
    Estimated Budget Authority.......................        0        0       65      105      145      155      400      425      455      485      510
    Estimated Outlays................................        0        0       90      140      180      180      430      445      465      485      510
  Ban on Recovery of Birth Costs:
    Medicaid:
      Estimated Budget Authority.....................        0        0        0        0        0        0       38       40       42       45       47
      Estimated Outlays..............................        0        0        0        0        0        0       38       40       42       45       47
Section 201: Review and Adjustment of Child Support
 Orders:
  Review of Orders of TANF Recipients:
    Child Support Administrative Costs:
      Estimated Budget Authority.....................        0        0       19       24       24       25       26       26       27       28       28
      Estimated Outlays..............................        0        0       19       24       24       25       26       26       27       28       28
    Child Support Collections:
      Estimated Budget Authority.....................        0        0       -5      -15      -24      -29      -31      -32      -32      -33      -34
      Estimated Outlays..............................        0        0       -5      -15      -24      -29      -31      -32      -32      -33      -34
    Food Stamps:
      Estimated Budget Authority.....................        0        0       -1       -2       -3       -3       -3       -4       -4       -4       -4
      Estimated Outlays..............................        0        0       -1       -2       -3       -3       -3       -4       -4       -4       -4
    Medicaid:
      Estimated Budget Authority.....................        0        0       -5      -10      -15      -15      -15      -15      -15      -15      -20
      Estimated Outlays..............................        0        0       -5      -10      -15      -15      -15      -15      -15      -15      -20
    Subtotal:
      Estimated Budget Authority.....................        0        0        8       -3      -18      -22      -23      -25      -24      -24      -30
      Estimated Outlays..............................        0        0        8       -3      -18      -22      -23      -25      -24      -24      -30
  Review of Orders of All Recipients that Leave TANF:
    Child Support Administrative Costs:
      Estimated Budget Authority.....................        0        0       16       20       20       22       22       22       22       24       24
      Estimated Outlays..............................        0        0       16       20       20       22       22       22       22       24       24
    Food Stamps:
      Estimated Budget Authority.....................        0        0       -5       -5       -5       -5       -5       -5       -5       -5       -5
      Estimated Outlays..............................        0        0       -5       -5       -5       -5       -5       -5       -5       -5       -5
    Medicaid:
      Estimated Budget Authority.....................        0        0        0       -5       -5       -5      -10      -10      -10      -10      -10
      Estimated Outlays..............................        0        0        0       -5       -5       -5      -10      -10      -10      -10      -10
    Subtotal:
      Estimated Budget Authority.....................        0        0       11       10       10       12        7        7        7        9        9
      Estimated Outlays..............................        0        0       11       10       10       12        7        7        7        9        9
Section 302: Demonstrations Involving Public Non-IV-D
 Child Support Agencies:
  Child Support Administrative Costs:
    Estimated Budget Authority.......................        0        0        2       12        7        2        2        2        2        2        2
    Estimated Outlays................................        0        0        2       12        7        2        2        2        2        2        2
Section 401: Denial of Passports:
  Child Support Collections:
    Estimated Budget Authority.......................        0        0       -1       -2       -2       -2       -2       -2       -2       -2       -2
    Estimated Outlays................................        0        0       -1       -2       -2       -2       -2       -2       -2       -2       -2
Section 501: Fatherhood Grants:
  Panels:
    Estimated Budget Authority.......................        0    (\1\)        0        0        0        0        0        0        0        0        0
    Estimated Outlays................................        0    (\1\)        0        0        0        0        0        0        0        0        0
  Grants:
    Estimated Budget Authority.......................        0        0       35       35       35       35        0        0        0        0        0
    Estimated Outlays................................        0        0       10       25       35       40       25        5        0        0        0
  Evaluation:
    Estimated Budget Authority.......................        0        0        6        0        0        0        0        0        0        0        0
    Estimated Outlays................................        0        0        1        1        1        1        1        2        0        0        0
  Effect of Grant Program on TANF Spending:
    Estimated Budget Authority.......................        0        0        0        0        0        0        0        0        0        0        0
    Estimated Outlays................................        0        0        1        1        2        2        1        0        0        0        0
  Subtotal:
    Estimated Budget Authority.......................        0        0       41       35       35       35        0        0        0        0        0
    Estimated Outlays................................        0        0       12       27       38       43       27        7        0        0        0
Section 511: Projects of National Significance:
  Estimated Budget Authority.........................        0        0        4        4        4        4        0        0        0        0        0
  Estimated Outlays..................................        0        0        1        2        4        4        3        1        0        0        0
Section 603: Use of New Hire Information:
  Unemployment Compensation:
    Estimated Budget Authority.......................        0       -7      -10      -12      -15      -16      -16      -16      -17      -17      -18
    Estimated Outlays................................        0       -7      -10      -12      -15      -16      -16      -16      -17      -17      -18
Section 606: Elimination of Welfare-to-Work
 Performance Bonus:
  Welfare-to-Work Grants:
    Estimated Budget Authority.......................      -50        0        0        0        0        0        0        0        0        0        0
    Estimated Outlays................................        0      -25      -25        0        0        0        0        0        0        0        0
Section 607: Foster Care Training:
  Foster Care:
    Estimated Budget Authority.......................        0        0       25       26       26       27       28       28       29       30       30
    Estimated Outlays................................        0        0       21       26       26       27       27       28       29       30       30
Total:
  Estimated Budget Authority.........................      -50       -7      144      175      192      195      434      459      492      528      548
    Estimated Outlays................................        0      -32      108      200      229      228      494      487      502      528      548

                                                                        REVENUES

Section 603: Use of New Hire Information Revenues....        0        0       -4      -17      -19      -19      -18      -16      -17      -17      -18

                                                                  NET EFFECT ON SURPLUS

Net Increase or Decrease (-) in Surplus..............        0       32     -112     -217     -248     -247     -512     -503     -519     -545     -566
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\=Less than $500,000.

Notes: The estimate assumes enactment before October 1, 2000. Details may not add to totals due to rounding.

    Food Stamps.--The new collections paid to former TANF 
recipients under H.R. 4678 would affect spending in the Food 
Stamp program. CBO expects that one-third of the former TANF 
recipients with increased child support income would 
participate in the Food Stamp program, and that benefits would 
be reduced by 30 cents for every extra dollar of income. 
Increased income from the tax offset, which is paid as a lump 
sum, would not count as income for determining Food Stamp 
benefits. For purposes of calculating Food Stamp benefits, 
incomes of former recipients would increase by $10 million in 
2002, rising to $60 million in 2010. Food Stamp savings would 
be about $5 million in 2002, rising to about $20 million by 
2010.
    Temporary Assistance for Needy Families.--H.R. 4678 would 
allow states to count any increased state spending stemming 
from the new distribution policy towards their maintenance-of-
effort requirement in the TANF program. (States are required to 
maintain spending on TANF at the 1994 level in order to receive 
federal TANF funding.) Many states have large unspent balances 
of federal TANF funds. Those states could reduce the amount of 
state money they spend on TANF by the amount that they could 
newly count as maintenance-of-effort spending. In order to meet 
the need for TANF assistance, those states could then 
accelerate spending of federal dollars.
    CBO assumes that states with TANF surpluses would cover 
half of their additional costs by accelerating the use of 
federal TANF funds. Those costs would total $180 million over 
the 2001-2010 period.
    Ban on the Recovery of Birth Costs.--Effective in 2006, 
section 101 would prohibit states from using their child 
support programs to recoup costs for the birth of a child that 
were paid by Medicaid. Based on a survey of states, CBO 
estimates that 40 percent of states now collect something from 
non-custodial parents to reimburse Medicaid and that 
collections totaled about $50 million in 1999. CBO expects 
those collections will grow at about five percent a year, a 
slightly slower rate than the average cost of a Medicaid case. 
The federal government's share of Medicaid collections is 57 
percent on average. As a result, CBO estimates the cost to the 
federal government would be $38 million in 2006 and $212 
million over the 2006-2010 period.
    Review and Adjustment of Child Support Orders.--Section 201 
would require states to review child support orders of families 
on TANF every three years and when they leave TANF. When a 
state reviews a child support order, it obtains current 
financial information from the custodial and non-custodial 
parents and determines whether any adjustment in the amount of 
ordered child support is indicated. The state also may revise 
an order to require the non-custodial parent to provide health 
insurance. Under current law, states are required to review 
orders every three years upon the request of a parent; they may 
also do so without such a request. About one-third of states 
perform automatic reviews every three years.
    CBO estimates that 220,000 more families on TANF and 
190,000 families leaving TANF would have their orders reviewed 
annually under the proposal and that 18 percent of those orders 
would be adjusted. The average cost of a review would be about 
$160 in 2002 and would grow each year with inflation. The 
federal government pays 66 percent of such administrative 
costs. CBO expects the proposal would be 80 percent implemented 
in 2002 and fully implemented by 2003. The additional cost to 
the federal government would rise from $34 million in 2002 to 
$52 million in 2010.
    The average adjustments to a child support order of a 
family on TANF would be $80 a month in 2002. CBO expects 
families leaving TANF would have slightly smaller increases, 
about $70 a month, because some of those orders may have been 
updated recently while the family was on TANF. Those 
adjustments would grow each year with inflation. CBO expects 
the increased collections for a family would continue for up to 
five years.
    While a family remains on TANF, the state would keep all 
the increased collections to reimburse itself and the federal 
government for welfare payments. CBO estimates that the federal 
share of collections, 56 percent, would grow from $5 million in 
2002 to $34 million in 2010.
    The states would pay an increased collections stemming from 
reviews of child support orders to families once they leave 
assistance. CBO expects one-third of families leaving TANF 
would receive benefits under the Food Stamp program and their 
benefits would be reduced by 30 cents for every extra dollar of 
income. This would reduce federal payments in the Food Stamp 
program by $5 million to $10 million each year. This includes 
savings from families whose orders are reviewed while they are 
on assistance who subsequently leave assistance.
    In addition, CBO expects some children would receive health 
insurance coverage from the non-custodial parent as a result of 
the new reviews. CBO estimates 40 percent of orders with a 
monetary adjustment would also be adjusted to include a 
requirement that the non-custodial parent provide health 
insurance for their child and that in about half of those cases 
such medical insurance would be provided. After the first few 
years. We assume newly provided medical insurance would decline 
by half, because many families would have already had medical 
insurance recently added to their order. We expect the non-
custodial parent would continue to provide health insurance for 
up to five years.
    CBO expects all of the families still on TANF would 
participate in Medicaid. About half of the children in families 
that left TANF would still participate in Medicaid six months 
later, but only 20 percent would still participate three years 
later. When health insurance is provided by a third party, 
Medicaid no longer has to provide it, so Medicaid savings would 
result. CBO estimates that each medical support order would 
cover an average of 1.5 children and that federal savings would 
rise from about $1,000 per child in 2002 to about $1,800 per 
child in 2010. Based on the federal government's average share 
of Medicaid spending (57 percent), federal Medicaid savings 
would rise from $5 million in 2002 to $30 million in 2010.
    The estimates of the costs of doing reviews and the impact 
of a review and adjustment on collections is based on a 1997 
report by Meyer and Dworsky, a 1992 study by Caliber and 
Associates, and discussions with state officials.
    Demonstrations Involving Public Non IV-D Child Support 
Agencies.--Section 302 would establish a demonstration program 
to determine the extent to which public child support 
enforcement agencies other then the IV-D agencies could 
contribute effectively to the establishment and enforcement of 
child support obligations.
    Every state has an agency, designated the IV-D agency, that 
operates a child support enforcement program according to 
federal guidelines and with federal funding available at a 66-
percent matching rate. Other public agencies in the state--for 
example, a county government or clerk of the court--may perform 
similar functions to the IV-D agency, but do not necessarily 
follow federal guidelines or claim federal funding. These other 
public agencies do not have full access to the same enforcement 
tools and information databases that are available to the IV-D 
agency. A family may choose to have its child support order 
enforced by a public agency other than the IV-D agency.
    H.R. 4678 would authorize the Secretary of Health and Human 
Services to approve up to 10 states to participate in the 
demonstration starting in July 2002. Under the demonstration, 
the IV-D agency would provide access to enforcement tools and 
information in databases to other public child support 
agencies, upon request.
    Based on information form state officials and the 
Department of Health and Human Services, CBO expects the 
demonstration program to increase administrative spending in 
the child support program. States would be required to hire new 
staff and reprogram computers to provide new services to other 
public child support agencies. CBO estimates that, on average, 
a state would spend $5 million in start-up costs and $500,000 
per year in ongoing operational costs. The operational costs 
would grow with inflation. CBO expects five states would 
participate in the demonstration. Start up costs would be 
spread over the 2002-2004 period and the federal government 
would pay 66 percent of any administrative costs. Federal costs 
would total $33 million over the 2001-2010 period.
    Denial of Passports.--Under current law, the State 
Department denies a request for a passport for a non-custodial 
parent if he or she owes more than $5,000 in past-due child 
support. Section 401 would lower that threshold and deny a 
passport to a non-custodial parent owing $2,500 or more. 
Generally, when a non-custodial parent seeks to restore 
eligibility for a passport, he or she will arrange to pay the 
past-due amount down to the threshold level.
    The State Department is currently denying about 8,750 
passport requests annually. If noncustodial parents owing 
between $2,500 and $5,000 apply for passports at the same rate, 
the proposal would generate an additional 3,700 denials 
annually. Data from the Department of Health and Human Services 
shows there are 3.1 million non-custodial parents owing more 
than $5,000 in pat-due child support and an additional 1.3 
million owing between $2,500 and $5,000.
    CBO assumes that 50 percent of non-custodial parents who 
have a request for a passport denied would make a payment in 
order to get their passport rather than just doing without one. 
A non-custodial parent owing more than $5,000 would have a pay 
an additional $2,500 to receive a passport. The average parent 
owing between $2,500 and $5,000 would have to pay $1,250 to 
receive a passport. As a result, CBO estimates the policy would 
result in new payments of child support of about $13 million 
annually. About one-third of those payments would be on behalf 
of current and former welfare families and would be retained by 
the government as reimbursement for welfare benefits. The 
federal share of such collections, 56 percent, would be $2 
million a year.
    Fatherhood Grants.--Section 501 would establish a new 
program to make grants to public and private entities for 
projects designed to promote marriage, improve parenting, and 
help fathers and their families leave welfare.
    An interagency panel, funded at $150,000 in 2001, would 
review applications and make recommendations to the Secretary 
of Health and Human Services. The Secretary would award $140 
million in grants in 2002. The funding would be available to 
grantees in four equal annual installments, and grantees would 
have to commit $1 for every $5 of federal grant funding. 
Grantees could provide services to fathers with incomes below 
150 percent of poverty or fathers whose children received funds 
from the TANF program within the most recent two-year period. 
CBO estimates that spending by grantees would initially be slow 
as the programs are phased in, but would speed up gradually in 
succeeding years. Spending would total $110 million over the 
2001-2005 period and $140 million over the 2001-2010 period.
    Evaluations.--The Secretary would conduct an evaluation of 
selected fatherhood projects. The bill would make $6 million 
available over the 2002-2010 period for that evaluation.
    Effect of Grant Program on TANF Spending.--The fatherhood 
grant program would affect spending under the TANF program. 
Some of the fatherhood grant money would be spent by government 
entities on families eligible for TANF. This spending could 
count as maintenance-of-effort spending in the TANF program and 
would be in addition to TANF spending by those entities under 
current law. Consequently, CBO estimates that federal TANF 
outlays would increase by $5 for every $100 of fatherhood grant 
spending. The estimate assumes that entities contribute the 20-
percent matching funds and that 25 percent of those funds would 
qualify as maintenance-of-effort spending. Additional spending 
would total $7 million over the 2001-2010 period.
    Fatherhood Projects of National Significance.--Section 502 
would establish a one-time grant of $5 million for a nonprofit 
organization to create a national clearinghouse to develop and 
distribute materials supporting marriage and responsible 
parenting. In addition, it would establish grants of $5 million 
for each of two nonprofits to establish multicity projects to 
promote marriage and successful parenting and help fathers and 
their families leave welfare. The grants would be awarded in 
four equal, annual installments starting in 2002. Spending 
would total $15 million over the 2001-2010 period.
    Use of New Hire Information.--Section 603 would allow 
states to access information in the national database of new 
hires in order to help detect fraud in the unemployment 
compensation system. Currently, most states may access the 
information that they send to the national registry. However, 
without access to the national information, a state may not 
receive important data regarding recent hires by national 
corporations that may report in other states. Only a few states 
have examined potential savings that could be realized if they 
had access to the national data, and their estimates are 
small--about 0.1 percent of total outlays. Nevertheless, states 
generally believe that access to the national data would be a 
valuable tool in detecting fraud earlier, as the information on 
new hires is more current than that contained in quarterly wage 
reports, which many states rely on now.
    A recent survey by the Interstate Conference of State 
Employment Security Agencies indicated that 19 states currently 
were using the state-reported information on new hires. Another 
20 states reported that they hoped to make use of this 
information in the near future. For purposes of this estimate, 
CBO assumed that the states currently using their own 
information would make use of the national information in the 
year that it became available. The other interested states are 
assumed to take advantage of the national information within 
the next few years. CBO estimates that this proposal would 
result in a reduction of $144 million in spending for 
unemployment compensation over the 2001-2010 period. Because 
this reduction in spending would be fully offset by a reduction 
in unemployment taxes, CBO estimates that there would be no net 
effect on the federal budget over the 10-year period. The 
provision would take effect October 1, 2000.
    Elimination of the Welfare-to-Work Performance Bonus.--
Section 606 would eliminate the $50 million set-aside for 
Welfare-to-Work performance bonuses. These bonuses were to have 
been awarded by the end of fiscal year 2000, but states would 
not be able to draw down the funds from these bonuses until the 
beginning of fiscal year 2001. If these bonuses are not paid, 
CBO estimates that $50 million would be saved over the 2001-
2010 period. The provision would be effective upon enactment of 
the bill.
    Foster Care Training.--Section 607 of the bill would allow 
states to claim more federal money for efforts they undertake 
to train staff of private, state-approved child welfare 
agencies in ways that provide support and assistance to foster 
and adoptive children. Under current law, states may claim $1 
of federal funds for every dollar of state money spent on this 
type of training. The bill would allow states to receive a 
higher federal match of $3 for every dollar of state spending. 
Based on information from several states, CBO estimates that 
enacting this section would increase federal spending by $21 
million in fiscal year 2002 (the first year in which the 
enhanced match rate would become effective), and by $244 
million over the 2001-2010 period.
    Pay-as-you-go considerations: The Balanced Budget and 
Emergency Deficit Control Act sets up pay-as-you-go procedures 
for legislation affecting direct spending or receipts. The net 
changes in outlays and governmental receipts that are subject 
to pay-as-you-go procedures are shown in the following table. 
For the purposes of enforcing pay-as-you-go procedures, only 
the effects in the current year, the budget year, and the 
succeeding four years are counted.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                          By fiscal year, in millions of dollars
                                                                 ---------------------------------------------------------------------------------------
                                                                   2000    2001    2002    2003    2004    2005    2006    2007    2008    2009    2010
--------------------------------------------------------------------------------------------------------------------------------------------------------
Changes in outlays..............................................       0     -32     108     200     229     228     494     487     502     528     548
Changes in receipts.............................................       0       0      -4     -17     -19     -19     -18     -16     -17     -17     -18
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Estimated impact on State, local, and tribal governments: 
H.R. 4678 would impose two new requirements on states with 
regard to their child support enforcement program that may 
constitute intergovernmental mandates as defined in the 
Unfunded Mandates Reform Act (UMRA). The bill would reduce the 
amounts that states may retain from child support collections 
in order to reimburse themselves for public assistance 
spending, in particular for TANF. As a result, state would lose 
a total of about $55 million in 2002 and $2.2 billion over the 
2002-2010 period. The bill would also require states to review 
child support orders of families on TANF every three years and 
when they leave TANF. State administrative costs would increase 
by $18 million in 2002 and by $220 million over the 2002-2010 
period. (Those administrative costs would be alleviated 
somewhat by increased collections retained by the state 
totaling $4 million in 2002 and $185 million over the 2002-1010 
period.) These requirements may be intergovernmental mandates 
as defined in UMRA because they would affect a large 
entitlement program in which states may not have sufficient 
flexibility to alter their financial and programmatic 
responsibilities to offset the costs of the requirements. 
States vary widely in how they operate and fund their child 
support programs, and CBO cannot determine the degree to which 
losses of this magnitude could be offset. In total, the annual 
losses to states would exceed the threshold established in UMRA 
($55 million in 2000, adjusted annually for inflation).
    Other provisions of H.R. 4678 would also affect state 
budgets, but those provisions would not be mandates as defined 
by UMRA, and in some cases, would provide for additional 
assistance to states. The bill would prohibit states from using 
the state child support program to recoup Medicaid costs for 
the birth of a child. This prohibition would result in a loss 
of revenues to states of about $30 million in 2006 and $160 
million over the 2006-2010 period. In addition, the bill would 
eliminate the welfare-to-work performance bonus available to 
states for successfully individuals in jobs with income growth 
potential for extended periods of time. CBO estimates a 
reduction of $50 million in grants to states over the 2001-2010 
period as a result of this elimination. However, states would 
have sufficient flexibility in their programs to accommodate 
these reductions.
    Section 302 would allow the Secretary to approve 
demonstration projects that would enable states to contract 
with public non-IV-D child support agencies for the enforcement 
of child support obligations. State participation in 
demonstration programs would be voluntary, and if they chose to 
participate, states could charge fees to the agencies for 
information and services associated with the demonstration 
projects. Up to 10 states could qualify for the demonstration 
projects, and CBO estimates that state spending for 
administrative costs would total $17 million over the 2002-2010 
period.
    Title V would authorize grants for fatherhood and parenting 
programs, particularly those designed to reduce dependence on 
welfare and to strengthen parenting skills. State, local, and 
tribal entities would be eligible for these grants, though 
preference would be given to public entities that pass funds 
through to private organizations. Approval of grants would also 
depend on the degree to which the prospective grantee could 
receive assurances from agencies responsible for enforcing 
child support obligations that they would cancel past due 
amounts owed by non-custodial parents. Cancellations of those 
amounts by those agencies and any participation in the 
fatherhood grant program by public entities would be voluntary.
    Title VI would allow states to access national information 
about new hires to help them detect fraud in the unemployment 
compensation system. CBO estimates that states would be able to 
reduce spending for unemployment compensation by $144 million 
over the 2001-2010 period. Consequently, they would also be 
able to reduce state unemployment taxes by the same amount, for 
a net budgetary impact of zero.
    The bill would increase the amount of federal matching 
funds that states could claim for some foster care training 
activities. The bill would allow states to claim $3 for every 
$1 of state spending rather than the $1 for $1 match under 
current law. As a result, CBO estimates that states would 
receive an additional $21 million in 2002 and $244 million over 
the 2001-2010 period.
    Finally, the stricter requirements for child support 
payments in order to obtain a passport would result in 
additional collections, of which approximately $2 million 
annually would be retained by state governments as 
reimbursement for prior public assistance payments.
    Estimated impact on the private sector: H.R. 4678 contains 
no private-sector mandates as defined in UMRA.
    Estimate prepared by: Federal Costs: Child Support: Sheila 
Dacey; Unemployment Compensation, Welfare-to-Work and Foster 
Care: Christina Hawley Sadot; Medicaid: Eric Rollins and Jeanne 
De Sa; and Food Stamps: Valerie Baxter.
    Impact on State, Local, and Tribal Governments: Leo Lex.
    Impact on the Private Sector: Ralph Smith.
    Estimate approved by: Robert A. Sunshine, Assistant 
Director for Budget Analysis.

 V. OTHER MATTERS REQUIRED TO BE DISCUSSED UNDER THE RULES OF THE HOUSE

          A. Committee Oversight Findings and Recommendations

    In compliance with clause 3(c)(1) of rule XIII of the Rules 
of the House of Representatives, the Committee reports that the 
need for this legislation was confirmed by the oversight 
hearings of the Subcommittee on Human Resources. The hearings 
were as follows:
    The Subcommittee on Human Resources held a hearing on May 
18, 2000, to receive comments on H.R. 4469, the bill as 
originally introduced by Chairman Nancy Johnson. Testimony at 
the hearing was presented by the Administration, program 
administrators, advocates, researchers, and Members of the U.S. 
House of Representatives. The Subcommittee also conducted 
hearings on May 19, 1998 (Serial 105-89), September 23, 1999 
(Serial 106-31), and October 5, 1999 (Serial 106-30) on child 
support enforcement issues, which included testimony from the 
Administration, child support administrators, officials of 
local child support programs that operate independently of the 
Federal-State program, academic witnesses, researchers, and 
advocacy groups. Testimony at these hearings concerned State 
implementation of the 1996 child support reforms, the current 
and potential role of child support enforcement outside the 
Federal-State program funded under Title IV-D of the Social 
Security Act, and the impact of domestic violence on child 
support enforcement. The Subcommittee also held a hearing on 
October 5, 1999 (Serial 106-30), to receive comments on H.R. 
3073, the fatherhood legislation that is now Title V of H.R. 
4678. Testimony at the hearing was presented by scholars, 
program administrators, foundation executives, and Members of 
the U.S. House of Representatives and the U.S. Senate. The 
Subcommittee also conducted hearings on April 27, 1999 and July 
30, 1998 (Serial 105-78) on fatherhood programs, which included 
testimony from the Administration, researchers, advocates, 
individuals who have designed and conducted programs for low-
income fathers, and young fathers whose children are on 
welfare.

  B. Summary of Findings and Recommendations of the Government Reform 
                               Committee

    In compliance with clause 3(c)(4) of rule XIII of the Rules 
of the House of Representatives, the Committee states that no 
oversight findings or recommendations have been submitted to 
the Committee on Government Reform regarding the subject of the 
bill.

                 C. Constitutional Authority Statement

    In compliance with clause 3(d)(1) of rule XIII of the Rules 
of the House of Representatives, relating to Constitutional 
Authority, the Committee states that the Committee's action in 
reporting the bill is derived from Article I of the 
Constitution, Section 8 (``The Congress shall have power to lay 
and collect taxes, duties, imposts and excises, to pay the 
debts and to provide for * * * the general Welfare of the 
United States * * * '').

              D. Information Relating to Unfunded Mandates

    This information is provided in accordance with Section 423 
of the Unfunded Mandates Reform Act of 1995 (P.L. 104-4). The 
Congressional Budget Office has indicated that this bill may 
impose intergovernmental mandates on states but it is not 
conclusive in its recommendation. The Committee bill provides 
resources to States by allowing States to cover costs incurred 
by this bill by either counting those expenditures toward their 
required maintenance of effort spending in the Temporary 
Assistance for Needy Families (TANF) program or by using money 
from the TANF program to fund child support activities. 
Therefore, the Committee believes the bill is in compliance 
with the requirements of the mandates statute.

       VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, existing law in which no change 
is proposed is shown in roman):

SOCIAL SECURITY ACT

           *       *       *       *       *       *       *

TITLE IV--GRANTS TO STATES FOR AID AND SERVICES TO NEEDY FAMILIES WITH 
CHILDREN AND FOR CHILD-WELFARE SERVICES

           *       *       *       *       *       *       *

   PART A--BLOCK GRANTS TO STATES FOR TEMPORARY ASSISTANCE FOR NEEDY 
FAMILIES

           *       *       *       *       *       *       *

SEC. 402. ELIGIBLE STATES; STATE PLAN.

  (a) In General.--As used in this part, the term ``eligible 
State'' means, with respect to a fiscal year, a State that, 
during the 27-month period ending with the close of the 1st 
quarter of the fiscal year, has submitted to the Secretary a 
plan that the Secretary has found includes the following:
          (1) * * *

           *       *       *       *       *       *       *

          (8) Certification that the child support enforcement 
        program will be provided notice of certan families 
        leaving tanf program.--A certification by the chief 
        executive officer of the State that the State has 
        established procedures to ensure that the State agency 
        administering the child support enforcement program 
        under the State plan approved under part D will be 
        provided notice of the impending discontinuation of 
        assistance to an individual under the State program 
        funded under this part if the individual has custody of 
        a child whose other parent is alive and not living at 
        home with the child.

           *       *       *       *       *       *       *

SEC. 403. GRANTS TO STATES.

  (a) Grants.--
          (1) Family assistance grant.--
                  (A) * * *

           *       *       *       *       *       *       *

                  (E) Appropriation.--Out of any money in the 
                Treasury of the United States not otherwise 
                appropriated, there are appropriated for fiscal 
                years 1996, 1997, 1998, 1999, 2000, 2001, and 
                2002 such sums as are necessary for grants 
                under this paragraph, and for fiscal years 2001 
                through 2007, such sums as are necessary to 
                carry out section 403A.

           *       *       *       *       *       *       *

          (5) Welfare-to-work grants.--
                  (A) Formula grants.--
                          (i) Entitlement.--A State shall be 
                        entitled to receive from the Secretary 
                        of Labor a grant for each fiscal year 
                        specified in subparagraph [(I)] (H) of 
                        this paragraph for which the State is a 
                        welfare-to-work State, in an amount 
                        that does not exceed the lesser of--
                                  (I) * * *

           *       *       *       *       *       *       *

                          (iv) Available amount.--As used in 
                        this subparagraph, the term ``available 
                        amount'' means, for a fiscal year, the 
                        sum of--
                                  (I) 75 percent of the sum 
                                of--
                                          (aa) the amount 
                                        specified in 
                                        subparagraph [(I)] (H) 
                                        for the fiscal year, 
                                        minus the total of the 
                                        amounts reserved 
                                        pursuant to 
                                        subparagraphs (E), (F), 
                                        [(G), and (H)] and (G) 
                                        for the fiscal year; 
                                        and
                                          (bb) any amount 
                                        reserved pursuant to 
                                        subparagraph [(F)] (E) 
                                        for the immediately 
                                        preceding fiscal year 
                                        that has not been 
                                        obligated; and

           *       *       *       *       *       *       *

                  (B) Competitive grants.--
                          (i) * * *

           *       *       *       *       *       *       *

                          (v) Funding.--For grants under this 
                        subparagraph for each fiscal year 
                        specified in subparagraph [(I)] (H), 
                        there shall be available to the 
                        Secretary of Labor an amount equal to 
                        the sum of--
                                  (I) 25 percent of the sum 
                                of--
                                          (aa) the amount 
                                        specified in 
                                        subparagraph [(I)] (H) 
                                        for the fiscal year, 
                                        minus the total of the 
                                        amounts reserved 
                                        pursuant to 
                                        subparagraphs (E), (F), 
                                        [(G), and (H)] and (G) 
                                        for the fiscal year; 
                                        and
                                          (bb) any amount 
                                        reserved pursuant to 
                                        subparagraph [(F)] (E) 
                                        for the immediately 
                                        preceding fiscal year 
                                        that has not been 
                                        obligated; and

           *       *       *       *       *       *       *

                  [(E) Set-aside for successful performance 
                bonus.--
                          [(i) In general.--The Secretary of 
                        Labor shall award a grant in accordance 
                        with this subparagraph to each 
                        successful performance State in fiscal 
                        year 2000, but shall not make any 
                        outlay to pay any such grant before 
                        October 1, 2000.
                          [(ii) Amount of grant.--The Secretary 
                        of Labor shall determine the amount of 
                        the grant payable under this 
                        subparagraph to a successful 
                        performance State, which shall be based 
                        on the score assigned to the State 
                        under clause (iv)(I)(aa) for such prior 
                        period as the Secretary of Labor deems 
                        appropriate.
                          [(iii) Formula for measuring state 
                        performance.--Not later than 1 year 
                        after the date of the enactment of this 
                        paragraph, the Secretary of Labor, in 
                        consultation with the Secretary of 
                        Health and Human Services, the National 
                        Governors' Association, and the 
                        American Public Welfare Association, 
                        shall develop a formula for measuring--
                                  [(I) the success of States in 
                                placing individuals in private 
                                sector employment or in any 
                                kind of employment, through 
                                programs operated with funds 
                                provided under subparagraph 
                                (A);
                                  [(II) the duration of such 
                                placements;
                                  [(III) any increase in the 
                                earnings of such individuals; 
                                and
                                  [(IV) such other factors as 
                                the Secretary of Labor deems 
                                appropriate concerning the 
                                activities of the States with 
                                respect to such individuals.
                        The formula may take into account 
                        general economic conditions on a State-
                        by-State basis.
                          [(iv) Scoring of state performance; 
                        setting of performance thresholds.--
                                  [(I) In general.--The 
                                Secretary of Labor shall--
                                          [(aa) use the formula 
                                        developed under clause 
                                        (iii) to assign a score 
                                        to each State that was 
                                        a welfare-to-work State 
                                        for fiscal years 1998 
                                        and 1999; and
                                          [(bb) prescribe a 
                                        performance threshold 
                                        in such a manner so as 
                                        to ensure that the 
                                        total amount of grants 
                                        to be made under this 
                                        paragraph equals 
                                        $50,000,000.
                                  [(II) Availability of 
                                welfare-to-work data submitted 
                                to the secretary of hhs.--The 
                                Secretary of Health and Human 
                                Services shall provide the 
                                Secretary of Labor with the 
                                data reported by States under 
                                this part with respect to 
                                programs operated with funds 
                                provided under subparagraph 
                                (A).
                          [(v) Successful performance state 
                        defined.--As used in this subparagraph, 
                        the term ``successful performance 
                        State'' means a State whose score 
                        assigned pursuant to clause (iv)(I)(aa) 
                        equals or exceeds the performance 
                        threshold prescribed under clause 
                        (iv)(I)(bb).
                          [(vi) Set-aside.--$50,000,000 of the 
                        amount specified in subparagraph (I) 
                        for fiscal year 1999 shall be reserved 
                        for grants under this subparagraph.]
                  [(F)] (E) Funding for indian tribes.--1 
                percent of the amount specified in subparagraph 
                [(I)] (H) for fiscal year 1998 and $15,000,000 
                of the amount so specified for fiscal year 1999 
                shall be reserved for grants to Indian tribes 
                under section 412(a)(3).
                  [(G)] (F) Funding for evaluations of welfare-
                to-work programs.--0.6 percent of the amount 
                specified in subparagraph [(I)] (H) for fiscal 
                year 1998 and $9,000,000 of the amount so 
                specified for fiscal year 1999 shall be 
                reserved for use by the Secretary to carry out 
                section 413(j).
                  [(H)] (G) Funding for evaluation of 
                abstinence education programs.--
                          (i)  * * *

           *       *       *       *       *       *       *

                          (iii) Deadline for outlays.--Outlays 
                        from funds used pursuant to clause (i) 
                        for evaluation of programs under 
                        section 510 shall not be made after 
                        fiscal year [2001] 2005.
                          (iv) Interim report.--Not later than 
                        January 1, 2002, the Secretary shall 
                        submit to the Congress a interim report 
                        on the evaluations referred to in 
                        clause (i).
                  [(I)] (H) Appropriations.--
                          (i) In general.--Out of any money in 
                        the Treasury of the United States not 
                        otherwise appropriated, there are 
                        appropriated for grants under this 
                        paragraph--
                                  (I) $1,500,000,000 for fiscal 
                                year 1998; and
                                  (II) [$1,450,000,000] 
                                $1,400,000,000 for fiscal year 
                                1999.
                          (ii) Availability.--The amounts made 
                        available pursuant to clause (i) shall 
                        remain available for such period as is 
                        necessary to make the grants provided 
                        for in this paragraph.
                  [(J)] (I) Worker protections.--
                          (i) Nondisplacement in work 
                        activities.--
                                  (I) * * *

           *       *       *       *       *       *       *

                  [(K)] (J) Information disclosure.--If a State 
                to which a grant is made under section 403 
                establishes safeguards against the use or 
                disclosure of information about applicants or 
                recipients of assistance under the State 
                program funded under this part, the safeguards 
                shall not prevent the State agency 
                administering the program from furnishing to a 
                private industry council the names, addresses, 
                telephone numbers, and identifying case number 
                information in the State program funded under 
                this part, of noncustodial parents residing in 
                the service delivery area of the private 
                industry council, for the purpose of 
                identifying and contacting noncustodial parents 
                regarding participation in the program under 
                this paragraph.

           *       *       *       *       *       *       *

SEC. 403A. FATHERHOOD PROGRAMS.

  (a) Purpose.--The purpose of this section is to make grants 
available to public and private entities for projects designed 
to--
          (1) promote marriage through counseling, mentoring, 
        disseminating information about the advantages of 
        marriage, enhancing relationship skills, teaching how 
        to control aggressive behavior, disseminating 
        information on the causes and treatment of domestic 
        violence and child abuse, and other methods;
          (2) promote successful parenting through counseling, 
        mentoring, disseminating information about good 
        parenting practices including prepregnancy, family 
        planning, training parents in money management, 
        encouraging child support payments, encouraging regular 
        visitation between fathers and their children, and 
        other methods; and
          (3) help fathers and their families avoid or leave 
        cash welfare provided by the program under part A and 
        improve their economic status by providing work first 
        services, job search, job training, subsidized 
        employment, career-advancing education, job retention, 
        job enhancement, and other methods.
  (b) Fatherhood Grants.--
          (1) Applications.--An entity desiring a grant to 
        carry out a project described in subsection (a) may 
        submit to the Secretary an application that contains 
        the following:
                  (A) A description of the project and how the 
                project will be carried out.
                  (B) A description of how the project will 
                address all three of the purposes of this 
                section.
                  (C) A written commitment by the entity that 
                the project will allow an individual to 
                participate in the project only if the 
                individual is--
                          (i) a father of a child who is, or 
                        within the past 24 months has been, a 
                        recipient of assistance or services 
                        under a State program funded under this 
                        part;
                          (ii) a father, including an expectant 
                        or married father, whose income (net of 
                        court-ordered child support) is less 
                        than 150 percent of the poverty line 
                        (as defined in section 673(2) of the 
                        Omnibus Budget Reconciliation Act of 
                        1981, including any revision required 
                        by such section, applicable to a family 
                        of the size involved); or
                          (iii) a parent referred to in 
                        paragraph (3)(A)(iii).
                  (D) A written commitment by the entity that 
                the entity will provide for the project, from 
                funds obtained from non-Federal sources, 
                amounts (including in-kind contributions) equal 
                in value to--
                          (i) 20 percent of the amount of any 
                        grant made to the entity under this 
                        subsection; or
                          (ii) such lesser percentage as the 
                        Secretary deems appropriate (which 
                        shall be not less than 10 percent) of 
                        such amount, if the application 
                        demonstrates that there are 
                        circumstances that limit the ability of 
                        the entity to raise funds or obtain 
                        resources.
                  (E) A written commitment by the entity that 
                the entity will make available to each 
                individual participating in the project 
                education about the causes of domestic violence 
                and child abuse and local programs to prevent 
                and treat abuse, education about alcohol, 
                tobacco, and other drugs and the effects of 
                abusing such substances, and information about 
                HIV/AIDS and its transmission.
          (2) Consideration of applications by interagency 
        panel.--
                  (A) Establishment.--There is established a 
                panel to be known as the ``Fatherhood Grants 
                Recommendations Panel'' (in this subparagraph 
                referred to as the ``Panel'').
                  (B) Membership.--
                          (i) In general.--The Panel shall be 
                        composed of 10 members, as follows:
                                  (I) Two members of the Panel 
                                shall be appointed by the 
                                Secretary.
                                  (II) Two members of the Panel 
                                shall be appointed by the 
                                Secretary of Labor.
                                  (III) Two members of the 
                                Panel shall be appointed by the 
                                Chairman of the Committee on 
                                Ways and Means of the House of 
                                Representatives.
                                  (IV) One member of the Panel 
                                shall be appointed by the 
                                ranking minority member of the 
                                Committee on Ways and Means of 
                                the House of Representatives.
                                  (V) Two members of the Panel 
                                shall be appointed by the 
                                Chairman of the Committee on 
                                Finance of the Senate.
                                  (VI) One member of the Panel 
                                shall be appointed by the 
                                ranking minority member of the 
                                Committee on Finance of the 
                                Senate.
                          (ii) Qualifications.--An individual 
                        shall not be eligible to serve on the 
                        Panel unless the individual has 
                        experience in programs for fathers, 
                        programs for the poor, programs for 
                        children, program administration, 
                        program research, or programs of 
                        domestic violence prevention and 
                        treatment.
                          (iii) Conflicts of interest.--An 
                        individual shall not be eligible to 
                        serve on the Panel if such service 
                        would pose a conflict of interest for 
                        the individual.
                          (iv) Timing of appointments.--The 
                        appointment of members to the Panel 
                        shall be completed not later than April 
                        1, 2001.
                  (C) Duties.--
                          (i) Review and make recommendations 
                        on project applications.--The Panel 
                        shall review all applications submitted 
                        pursuant to paragraph (1), and make 
                        recommendations to the Secretary 
                        regarding which applicants should be 
                        awarded grants under this subsection, 
                        with due regard for the provisions of 
                        paragraph (3), but shall not recommend 
                        that a project be awarded such a grant 
                        if the application describing the 
                        project does not attempt to meet the 
                        requirement of paragraph (1)(B).
                          (ii) Timing.--The Panel shall make 
                        such recommendations not later than 
                        October 1, 2001.
                  (D) Term of office.--Each member appointed to 
                the Panel shall serve for the life of the 
                Panel.
                  (E) Prohibition on compensation.--Members of 
                the Panel may not receive pay, allowances, or 
                benefits by reason of their service on the 
                Panel.
                  (F) Travel expenses.--Each member of the 
                Panel shall receive travel expenses, including 
                per diem in lieu of subsistence, in accordance 
                with sections 5702 and 5703 of title 5, United 
                States Code.
                  (G) Meetings.--The Panel shall meet as often 
                as is necessary to complete the business of the 
                Panel.
                  (H) Chairperson.--The Chairperson of the 
                Panel shall be designated by the Secretary at 
                the time of appointment.
                  (I) Staff of federal agencies.--The Secretary 
                may detail any personnel of the Department of 
                Health and Human Services and the Secretary of 
                Labor may detail any personnel of the 
                Department of Labor to the Panel to assist the 
                Panel in carrying out its duties under this 
                paragraph.
                  (J) Obtaining official data.--The Panel may 
                secure directly from any department or agency 
                of the United States information necessary to 
                enable it to carry out this paragraph. On 
                request of the Chairperson of the Panel, the 
                head of the department or agency shall furnish 
                that information to the Panel.
                  (K) Mails.--The Panel may use the United 
                States mails in the same manner and under the 
                same conditions as other departments and 
                agencies of the United States.
                  (L) Termination.--The Panel shall terminate 
                on October 1, 2001.
          (3) Rules governing grants.--
                  (A) Grant awards.--
                          (i) In general.--The Secretary shall 
                        award matching grants, on a competitive 
                        basis, among entities submitting 
                        applications therefor which meet the 
                        requirements of paragraph (1), in 
                        amounts that take into account the 
                        written commitments referred to in 
                        paragraph (1)(D).
                          (ii) Timing.--On October 1, 2001, the 
                        Secretary shall award not more than 
                        $140,000,000 in matching grants after 
                        considering the recommendations 
                        submitted pursuant to paragraph 
                        (2)(C)(i).
                          (iii) Nondiscrimination.--The 
                        provisions of this section shall be 
                        applied and administered so as to 
                        ensure that mothers, expectant mothers, 
                        and married mothers are eligible for 
                        benefits and services under projects 
                        awarded grants under this section on 
                        the same basis as fathers, expectant 
                        fathers, and married fathers.
                  (B) Preferences.--In determining which 
                entities to which to award grants under this 
                subsection, the Secretary shall give preference 
                to an entity--
                          (i) to the extent that the 
                        application submitted by the entity 
                        describes actions that the entity will 
                        take that are designed to encourage or 
                        facilitate the payment of child 
                        support, including but not limited to--
                                  (I) obtaining a written 
                                commitment by the agency 
                                responsible for administering 
                                the State plan approved under 
                                part D for the State in which 
                                the project is to be carried 
                                out that the State will 
                                voluntarily cancel child 
                                support arrearages owed to the 
                                State by the father as a result 
                                of the father providing various 
                                supports to the family such as 
                                maintaining a regular child 
                                support payment schedule or 
                                living with his children 
                                (unless the father has been 
                                convicted of a crime involving 
                                domestic violence or child 
                                abuse);
                                  (II) obtaining a written 
                                commitment by the entity that 
                                the entity will help 
                                participating fathers who 
                                cooperate with the agency in 
                                improving their credit rating; 
                                and
                                  (III) helping fathers arrange 
                                and maintain a consistent 
                                schedule of visits with their 
                                children, unless it would be 
                                unsafe;
                          (ii) to the extent that the 
                        application includes written agreements 
                        of cooperation with other private and 
                        governmental agencies, including the 
                        State or local program funded under 
                        this part, the local Workforce 
                        Investment Board, the State or local 
                        program funded under part D, community-
                        based domestic violence programs, and 
                        the State or local program funded under 
                        part E, which should include a 
                        description of the services each such 
                        agency will provide to fathers 
                        participating in the project described 
                        in the application;
                          (iii) to the extent that the 
                        application describes a project that 
                        will enroll a high percentage of 
                        project participants within 6 months 
                        before or after the birth of the child; 
                        or
                          (iv) to the extent that the 
                        application sets forth clear and 
                        practical methods by which fathers will 
                        be recruited to participate in the 
                        project.
                  (C) Minimum percentage of recipients of grant 
                funds to be nongovernmental (including faith-
                based) organizations.--Not less than 75 percent 
                of the entities awarded grants under this 
                subsection in each fiscal year (other than 
                entities awarded such grants pursuant to the 
                preferences required by subparagraph (B)) shall 
                be awarded to--
                          (i) nongovernmental (including faith-
                        based) organizations; or
                          (ii) governmental organizations that 
                        pass through to organizations referred 
                        to in clause (i) at least 50 percent of 
                        the amount of the grant.
                  (D) Diversity of projects.--
                          (i) In general.--In determining which 
                        entities to which to award grants under 
                        this subsection, the Secretary shall 
                        attempt to achieve a balance among 
                        entities of differing sizes, entities 
                        in differing geographic areas, entities 
                        in urban versus rural areas, and 
                        entities employing differing methods of 
                        achieving the purposes of this section.
                          (ii) Report to the congress.--Within 
                        90 days after each award of grants 
                        under subparagraph (A)(ii), the 
                        Secretary shall submit to the Committee 
                        on Ways and Means of the House of 
                        Representatives and the Committee on 
                        Finance of the Senate a brief report on 
                        the diversity of projects selected to 
                        receive funds under the grant program. 
                        The report shall include a comparison 
                        of funding for projects located in 
                        urban areas, projects located in 
                        suburban areas, and projects located in 
                        rural areas.
                  (E) Payment of grant in four equal annual 
                installments.--During the fiscal year in which 
                a grant is awarded under this subsection and 
                each of the succeeding three fiscal years, the 
                Secretary shall provide to the entity awarded 
                the grant an amount equal to \1/4\ of the 
                amount of the grant.
          (4) Use of funds.--
                  (A) In general.--Each entity to which a grant 
                is made under this section shall use grant 
                funds provided under this section in accordance 
                with the application requesting the grant, the 
                requirements of this section, and the 
                regulations prescribed under this section, and 
                may use grant funds to support community-wide 
                initiatives to address the purposes of this 
                section, but may not use grant funds for court 
                proceedings on matters of child visitation or 
                child custody or for legislative advocacy.
                  (B) Nondisplacement.--
                          (i) In general.--An adult in a work 
                        activity described in section 407(d) 
                        which is funded, in whole or in part, 
                        by funds provided under this section 
                        shall not be employed or assigned--
                                  (I) when any other individual 
                                is on layoff from the same or 
                                any substantially equivalent 
                                job; or
                                  (II) if the employer has 
                                terminated the employment of 
                                any regular employee or 
                                otherwise caused an involuntary 
                                reduction of its workforce in 
                                order to fill the vacancy so 
                                created with such an adult.
                          (ii) Grievance procedure.--
                                  (I) In general.--Complaints 
                                alleging violations of clause 
                                (i) in a State may be 
                                resolved--
                                          (aa) if the State has 
                                        established a grievance 
                                        procedure under section 
                                        403(a)(5)(I)(iv), 
                                        pursuant to the 
                                        grievance procedure; or
                                          (bb) otherwise, 
                                        pursuant to the 
                                        grievance procedure 
                                        established by the 
                                        State under section 
                                        407(f)(3).
                                  (II) Forfeiture of grant if 
                                grievance procedure not 
                                available.--If a complaint 
                                referred to in subclause (I) is 
                                made against an entity to which 
                                a grant has been made under 
                                this section with respect to a 
                                project, and the complaint 
                                cannot be brought to, or cannot 
                                be resolved within 90 days 
                                after being brought, by a 
                                grievance procedure referred to 
                                in subclause (I), then the 
                                entity shall immediately return 
                                to the Secretary all funds 
                                provided to the entity under 
                                this section for the project, 
                                and the Secretary shall 
                                immediately rescind the grant.
                  (C) Rule of construction.--This section shall 
                not be construed to require the participation 
                of a father in a project funded under this 
                section to be discontinued by the project on 
                the basis of changed economic circumstances of 
                the father.
                  (D) Rule of construction on marriage.--This 
                section shall not be construed to authorize the 
                Secretary to define marriage for purposes of 
                this section.
                  (E) Penalty for misuse of grant funds.--If 
                the Secretary determines that an entity to 
                which a grant is made under this subsection has 
                used any amount of the grant in violation of 
                subparagraph (A), the Secretary shall require 
                the entity to remit to the Secretary an amount 
                equal to the amount so used, plus all remaining 
                grant funds, and the entity shall thereafter be 
                ineligible for any grant under this subsection.
                  (F) Remittance of unused grant funds.--Each 
                entity to which a grant is awarded under this 
                subsection shall remit to the Secretary all 
                funds paid under the grant that remain at the 
                end of the fifth fiscal year ending after the 
                initial grant award.
          (5) Authority of agencies to exchange information.--
        Each agency administering a program funded under this 
        part or a State plan approved under part D may share 
        the name, address, telephone number, and identifying 
        case number information in the State program funded 
        under this part, of fathers for purposes of assisting 
        in determining the eligibility of fathers to 
        participate in projects receiving grants under this 
        section, and in contacting fathers potentially eligible 
        to participate in the projects, subject to all 
        applicable privacy laws.
          (6) Evaluation.--The Secretary, in consultation with 
        the Secretary of Labor, shall, directly or by grant, 
        contract, or interagency agreement, conduct an 
        evaluation of projects funded under this section (other 
        than under subsection (c)(1)). The evaluation shall 
        assess, among other outcomes selected by the Secretary, 
        effects of the projects on marriage, parenting, 
        employment, earnings, payment of child support, and 
        incidence of domestic violence and child abuse. In 
        selecting projects for the evaluation, the Secretary 
        should include projects that, in the Secretary's 
        judgment, are most likely to impact the matters 
        described in the purposes of this section. In 
        conducting the evaluation, random assignment should be 
        used wherever possible.
          (7) Regulations.--The Secretary shall prescribe such 
        regulations as may be necessary to carry out this 
        subsection.
          (8) Limitation on applicability of other provisions 
        of this part.--Sections 404 through 410 shall not apply 
        to this section or to amounts paid under this section, 
        and shall not be applied to an entity solely by reason 
        of receipt of funds pursuant to this section. A project 
        shall not be considered a State program funded under 
        this part solely by reason of receipt of funds paid 
        under this section.
          (9) Funding.--
                  (A) In general.--
                          (i) Interagency panel.--Of the 
                        amounts made available pursuant to 
                        section 403(a)(1)(E) to carry out this 
                        section for fiscal year 2001, a total 
                        of $150,000 shall be made available for 
                        the interagency panel established by 
                        paragraph (2) of this subsection.
                          (ii) Grants.--Of the amounts made 
                        available pursuant to section 
                        403(a)(1)(E) to carry out this section 
                        for fiscal years 2002 through 2005, a 
                        total of $140,000,000 shall be made 
                        available for grants under this 
                        subsection.
                          (iii) Evaluation.--Of the amounts 
                        made available pursuant to section 
                        403(a)(1)(E) to carry out this section 
                        for fiscal years 2001 through 2006, a 
                        total of $6,000,000 shall be made 
                        available for the evaluation required 
                        by paragraph (6) of this subsection.
                  (B) Availability.--
                          (i) Grant funds.--The amounts made 
                        available pursuant to subparagraph 
                        (A)(ii) shall remain available until 
                        the end of fiscal year 2006.
                          (ii) Evaluation funds.--The amounts 
                        made available pursuant to subparagraph 
                        (A)(iii) shall remain available until 
                        the end of fiscal year 2008.
  (c) Fatherhood Projects of National Significance.--
          (1) National clearinghouse.--The Secretary shall 
        award a $5,000,000 grant to a nationally recognized, 
        nonprofit fatherhood promotion organization with at 
        least 4 years of experience in designing and 
        disseminating a national public education campaign, 
        including the production and successful placement of 
        television, radio, and print public service 
        announcements which promote the importance of 
        responsible fatherhood, and with at least 4 years 
        experience providing consultation and training to 
        community-based organizations interested in 
        implementing fatherhood outreach, support, or skill 
        development programs with an emphasis on promoting 
        married fatherhood as the ideal, to--
                  (A) develop, promote, and distribute to 
                interested States, local governments, public 
                agencies, and private nonprofit organizations, 
                including charitable and religious 
                organizations, a media campaign that encourages 
                the appropriate involvement of both parents in 
                the life of any child of the parents, and 
                encourages such organizations to develop or 
                sponsor programs that specifically address the 
                issue of responsible fatherhood and the 
                advantages conferred on children by marriage;
                  (B) develop a national clearinghouse to 
                assist States, communities, and private 
                entities in efforts to promote and support 
                marriage and responsible fatherhood by 
                collecting, evaluating, and making available 
                (through the Internet and by other means) to 
                all interested parties, information regarding 
                media campaigns and fatherhood programs;
                  (C) develop and distribute materials that are 
                for use by entities described in subparagraph 
                (A) or (B) and that help young adults manage 
                their money, develop the knowledge and skills 
                needed to promote successful marriages, plan 
                for future expenditures and investments, and 
                plan for retirement;
                  (D) develop and distribute materials that are 
                for use by entities described in subparagraphs 
                (A) and (B) and that list all the sources of 
                public support for education and training that 
                are available to young adults, including 
                government spending programs as well as 
                benefits under Federal and State tax laws.
          (2) Multicity fatherhood projects.--
                  (A) In general.--The Secretary shall award a 
                $5,000,000 grant to each of two nationally 
                recognized nonprofit fatherhood promotion 
                organizations which meet the requirements of 
                subparagraph (B), at least one of which 
                organizations meets the requirement of 
                subparagraph (C).
                  (B) Requirements.--The requirements of this 
                subparagraph are the following:
                          (i) The organization must have 
                        several years of experience in 
                        designing and conducting programs that 
                        meet the purposes described in 
                        paragraph (1).
                          (ii) The organization must have 
                        experience in simultaneously conducting 
                        such programs in more than one major 
                        metropolitan area and in coordinating 
                        such programs with local government 
                        agencies and private, nonprofit 
                        agencies, including State or local 
                        agencies responsible for conducting the 
                        program under part D and Workforce 
                        Investment Boards.
                          (iii) The organization must submit to 
                        the Secretary an application that meets 
                        all the conditions applicable to the 
                        organization under this section and 
                        that provides for projects to be 
                        conducted in three major metropolitan 
                        areas.
                  (C) Use of married couples to deliver 
                services in the inner city.--The requirement of 
                this subparagraph is that the organization has 
                extensive experience in using married couples 
                to deliver program services in the inner city.
          (3) Payment of grants in four equal annual 
        installments.--During each of fiscal years 2002 through 
        2005, the Secretary shall provide to each entity 
        awarded a grant under this subsection an amount equal 
        to \1/4\ of the amount of the grant.
          (4) Funding.--
                  (A) In general.--Of the amounts made 
                available pursuant to section 403(a)(1)(E) to 
                carry out this section, $3,750,000 shall be 
                made available for grants under this subsection 
                for each of fiscal years 2002 through 2005.
                  (B) Availability.--The amounts made available 
                pursuant to subparagraph (A) shall remain 
                available until the end of fiscal year 2005.

SEC. 404. USE OF GRANTS.

  (a) General Rules.--Subject to this part, a State to which a 
grant is made under section 403 may use the grant--
          (1) in any manner that is reasonably calculated to 
        accomplish the purpose of this part, including to 
        provide low income households with assistance in 
        meeting home heating and cooling costs; [or]
          (2) in any manner that the State was authorized to 
        use amounts received under part A or F, as such parts 
        were in effect on September 30, 1995, or (at the option 
        of the State) August 21, 1996[.]; or
          (3) to fund payment of an amount pursuant to section 
        457(a)(2)(B)(i), but only to the extent that the State 
        properly elects under section 457(a)(6) to use the 
        grant to fund the payment.

           *       *       *       *       *       *       *

SEC. 408. PROHIBITIONS; REQUIREMENTS.

  (a) In General.--
          (1) * * *

           *       *       *       *       *       *       *

          [(3) No assistance for families not assigning certain 
        support rights to the state.--
                  [(A) In general.--A State to which a grant is 
                made under section 403 shall require, as a 
                condition of providing assistance to a family 
                under the State program funded under this part, 
                that a member of the family assign to the State 
                any rights the family member may have (on 
                behalf of the family member or of any other 
                person for whom the family member has applied 
                for or is receiving such assistance) to support 
                from any other person, not exceeding the total 
                amount of assistance so provided to the family, 
                which accrue (or have accrued) before the date 
                the family ceases to receive assistance under 
                the program, which assignment, on and after 
                such date, shall not apply with respect to any 
                support (other than support collected pursuant 
                to section 464) which accrued before the family 
                received such assistance and which the State 
                has not collected by--
                          [(i)(I) September 30, 2000, if the 
                        assignment is executed on or after 
                        October 1, 1997, and before October 1, 
                        2000; or
                          [(II) the date the family ceases to 
                        receive assistance under the program, 
                        if the assignment is executed on or 
                        after October 1, 2000; or
                          [(ii) if the State elects to 
                        distribute collections under section 
                        457(a)(6), the date the family ceases 
                        to receive assistance under the 
                        program, if the assignment is executed 
                        on or after October 1, 1998.
                  [(B) Limitation.--A State to which a grant is 
                made under section 403 shall not require, as a 
                condition of providing assistance to any family 
                under the State program funded under this part, 
                that a member of the family assign to the State 
                any rights to support described in subparagraph 
                (A) which accrue after the date the family 
                ceases to receive assistance under the 
                program.]

           *       *       *       *       *       *       *

          (3) No assistance for families not assigning certain 
        support rights to the state.--A State to which a grant 
        is made under section 403 shall require, as a condition 
        of providing assistance to a family under the State 
        program funded under this part, that a member of the 
        family assign to the State any rights the family member 
        may have (on behalf of the family member or of any 
        other person for whom the family member has applied for 
        or is receiving such assistance) to support from any 
        other person, not exceeding the total amount of 
        assistance so provided to the family, which accrues 
        during the period that the family receives assistance 
        under the program.

           *       *       *       *       *       *       *

SEC. 409. PENALTIES.

  (a) In General.--Subject to this section:
          (1) * * *

           *       *       *       *       *       *       *

          (7) Failure of any state to maintain certain level of 
        historic effort.--
                  (A) * * *
                  (B) Definitions.--As used in this paragraph:
                          (i) Qualified state expenditures.--
                                  (I) In general.--The term 
                                ``qualified State 
                                expenditures'' means, with 
                                respect to a State and a fiscal 
                                year, the total expenditures by 
                                the State during the fiscal 
                                year, under all State programs, 
                                for any of the following with 
                                respect to eligible families:
                                          (aa) Cash assistance, 
                                        including any amount 
                                        collected by the State 
                                        as support pursuant to 
                                        a plan approved under 
                                        part D, on behalf of a 
                                        family receiving 
                                        assistance under the 
                                        State program funded 
                                        under this part, that 
                                        is distributed to the 
                                        family under section 
                                        [457(a)(1)(B)] 
                                        457(a)(1) and 
                                        disregarded in 
                                        determining the 
                                        eligibility of the 
                                        family for, and the 
                                        amount of, such 
                                        assistance.

           *       *       *       *       *       *       *

                                  (V) Portions of certain child 
                                support payments collected on 
                                behalf of and distributed to 
                                families no longer receiving 
                                assistance.--Any amount paid by 
                                a State pursuant to section 
                                457(a)(2)(B)(i), but only to 
                                the extent that the State 
                                properly elects under section 
                                457(a)(6) to have the payment 
                                considered a qualified State 
                                expenditure.

           *       *       *       *       *       *       *

SEC. 412. DIRECT FUNDING AND ADMINISTRATION BY INDIAN TRIBES.

  (a) Grants for Indian Tribes.--
          (1) * * *

           *       *       *       *       *       *       *

          (3) Welfare-to-work grants.--
                  (A) In general.--The Secretary of Labor shall 
                award a grant in accordance with this paragraph 
                to an Indian tribe for each fiscal year 
                specified in section [403(a)(5)(I)] 
                403(a)(5)(H) for which the Indian tribe is a 
                welfare-to-work tribe, in such amount as the 
                Secretary of Labor deems appropriate, subject 
                to subparagraph (B) of this paragraph.

           *       *       *       *       *       *       *

Part D--Child Support and Establishment of Paternity

           *       *       *       *       *       *       *

                        DUTIES OF THE SECRETARY

  Sec. 452. (a) * * *

           *       *       *       *       *       *       *

  (k)(1) If the Secretary receives a certification by a State 
agency in accordance with the requirements of section 454(31) 
that an individual owes arrearages of child support in an 
amount exceeding [$5,000] $2,500, the Secretary shall transmit 
such certification to the Secretary of State for action (with 
respect to denial, revocation, or limitation of passports) 
pursuant to paragraph (2).

           *       *       *       *       *       *       *

  (m) If the Secretary receives a certification by a State 
agency, in accordance with section 454(35), that an individual 
who is a nonimmigrant alien (as defined in section 101(a)(15) 
of the Immigration and Nationality Act) owes arrearages of 
child support in an amount exceeding $2,500, the Secretary may, 
at the request of the State agency, the Secretary of State, or 
the Attorney General, or on the Secretary's own initiative, 
provide such certification to the Secretary of State and the 
Attorney General information in order to enable them to carry 
out their responsibilities under sections 212(a)(10) and 235(d) 
of such Act.

                     FEDERAL PARENT LOCATOR SERVICE

  Sec. 453. (a) * * *

           *       *       *       *       *       *       *

  (j) Information Comparisons and Other Disclosures.--
          (1) * * *

           *       *       *       *       *       *       *

          (7)  Information  comparisons  and  disclosure  to  
        assist in administration of unemployment compensation 
        programs.--
                  (A) In general.--If a State agency 
                responsible for the administration of an 
                unemployment compensation program under Federal 
                or State law transmits to the Secretary the 
                name and social security account number of an 
                individual, the Secretary shall, if the 
                information in the National Directory of New 
                Hires indicates that the individual may be 
                employed, disclose to the State agency the 
                name, address, and employer identification 
                number of any putative employer of the 
                individual, subject to this paragraph.
                  (B) Condition on disclosure.--The Secretary 
                shall make a disclosure under subparagraph (A) 
                only to the extent that the Secretary 
                determines that the disclosure would not 
                interfere with the effective operation of the 
                program under this part.
                  (C) Use of information.--A State agency may 
                use information provided under this paragraph 
                only for purposes of administering a program 
                referred to in subparagraph (A).

           *       *       *       *       *       *       *

                STATE PLAN FOR CHILD AND SPOUSAL SUPPORT

  Sec. 454. A State plan for child and spousal support must--
          (1) * * *

           *       *       *       *       *       *       *

          (32)(A) * * *

           *       *       *       *       *       *       *

          (C) provide that no applications will be required 
        from, and no costs will be assessed for such services 
        against, the foreign reciprocating country or foreign 
        obligee (but costs may at State option be assessed 
        against the obligor); [and]
          (33) provide that a State that receives funding 
        pursuant to section 428 and that has within its borders 
        Indian country (as defined in section 1151 of title 18, 
        United States Code) may enter into cooperative 
        agreements with an Indian tribe or tribal organization 
        (as defined in subsections (e) and (l) of section 4 of 
        the Indian Self-Determination and Education Assistance 
        Act (25 U.S.C. 450b)), if the Indian tribe or tribal 
        organization demonstrates that such tribe or 
        organization has an established tribal court system or 
        a Court of Indian Offenses with the authority to 
        establish paternity, establish, modify, or enforce 
        support orders, or to enter support orders in 
        accordance with child support guidelines established or 
        adopted by such tribe or organization, under which the 
        State and tribe or organization shall provide for the 
        cooperative delivery of child support enforcement 
        services in Indian country and for the forwarding of 
        all collections pursuant to the functions performed by 
        the tribe or organization to the State agency, or 
        conversely, by the State agency to the tribe or 
        organization, which shall distribute such collections 
        in accordance with such agreement[.];
          (34) provide that the State shall not use the State 
        program operated under this part to collect any amount 
        owed to the State by reason of costs incurred under the 
        State plan approved under title XIX for the birth of a 
        child for whom support rights have been assigned 
        pursuant to section 408(a)(3), 471(a)(17), or 1912; and
          (35) provide that the State agency will have in 
        effect a procedure for certifying to the Secretary, in 
        such format and accompained by such supporting 
        documentation as the Secretary may require, 
        determinations that nonimmigrant aliens owe arrearages 
        of child support in an amount exceeding $2,500.

           *       *       *       *       *       *       *

SEC. 457. DISTRIBUTION OF COLLECTED SUPPORT.

  [(a) In General.--Subject to subsections (e) and (f), an 
amount collected on behalf of a family as support by a State 
pursuant to a plan approved under this part shall be 
distributed as follows:
          [(1) Families receiving assistance.--In the case of a 
        family receiving assistance from the State, the State 
        shall--
                  [(A) pay to the Federal Government the 
                Federal share of the amount so collected; and
                  [(B) retain, or distribute to the family, the 
                State share of the amount so collected.
        In no event shall the total of the amounts paid to the 
        Federal Government and retained by the State exceed the 
        total of the amounts that have been paid to the family 
        as assistance by the State.
          [(2) Families that formerly received assistance.--In 
        the case of a family that formerly received assistance 
        from the State:
                  [(A) Current support payments.--To the extent 
                that the amount so collected does not exceed 
                the amount required to be paid to the family 
                for the month in which collected, the State 
                shall distribute the amount so collected to the 
                family.
                  [(B) Payments of arrearages.--To the extent 
                that the amount so collected exceeds the amount 
                required to be paid to the family for the month 
                in which collected, the State shall distribute 
                the amount so collected as follows:
                          [(i) Distribution of arrearages that 
                        accrued after the family ceased to 
                        receive assistance.--
                                  [(I) Pre-october 1997.--
                                Except as provided in subclause 
                                (II), the provisions of this 
                                section as in effect and 
                                applied on the day before the 
                                date of the enactment of 
                                section 302 of the Personal 
                                Responsibility and Work 
                                Opportunity Reconciliation Act 
                                of 1996 (other than subsection 
                                (b)(1) (as so in effect)) shall 
                                apply with respect to the 
                                distribution of support 
                                arrearages that--
                                          [(aa) accrued after 
                                        the family ceased to 
                                        receive assistance, and
                                          [(bb) are collected 
                                        before October 1, 1997.
                                  [(II) Post-september 1997.--
                                With respect to the amount so 
                                collected on or after October 
                                1, 1997 (or before such date, 
                                at the option of the State)--
                                          [(aa) In general.--
                                        The State shall first 
                                        distribute the amount 
                                        so collected (other 
                                        than any amount 
                                        described in clause 
                                        (iv)) to the family to 
                                        the extent necessary to 
                                        satisfy any support 
                                        arrearages with respect 
                                        to the family that 
                                        accrued after the 
                                        family ceased to 
                                        receive assistance from 
                                        the State.
                                          [(bb) Reimbursement 
                                        of governments for 
                                        assistance provided to 
                                        the family.--After the 
                                        application of division 
                                        (aa) and clause 
                                        (ii)(II)(aa) with 
                                        respect to the amount 
                                        so collected, the State 
                                        shall retain the State 
                                        share of the amount so 
                                        collected, and pay to 
                                        the Federal Government 
                                        the Federal share (as 
                                        defined in subsection 
                                        (c)(2)) of the amount 
                                        so collected, but only 
                                        to the extent necessary 
                                        to reimburse amounts 
                                        paid to the family as 
                                        assistance by the 
                                        State.
                                          [(cc) Distribution of 
                                        the remainder to the 
                                        family.--To the extent 
                                        that neither division 
                                        (aa) nor division (bb) 
                                        applies to the amount 
                                        so collected, the State 
                                        shall distribute the 
                                        amount to the family.
                          [(ii) Distribution of arrearages that 
                        accrued before the family received 
                        assistance.--
                                  [(I) Pre-october 2000.--
                                Except as provided in subclause 
                                (II), the provisions of this 
                                section as in effect and 
                                applied on the day before the 
                                date of the enactment of 
                                section 302 of the Personal 
                                Responsibility and Work 
                                Opportunity Reconciliation Act 
                                of 1996 (other than subsection 
                                (b)(1) (as so in effect)) shall 
                                apply with respect to the 
                                distribution of support 
                                arrearages that--
                                          [(aa) accrued before 
                                        the family received 
                                        assistance, and
                                          [(bb) are collected 
                                        before October 1, 2000.
                                  [(II) Post-september 2000.--
                                Unless, based on the report 
                                required by paragraph (5), the 
                                Congress determines otherwise, 
                                with respect to the amount so 
                                collected on or after October 
                                1, 2000 (or before such date, 
                                at the option of the State)--
                                          [(aa) In general.--
                                        The State shall first 
                                        distribute the amount 
                                        so collected (other 
                                        than any amount 
                                        described in clause 
                                        (iv)) to the family to 
                                        the extent necessary to 
                                        satisfy any support 
                                        arrearages with respect 
                                        to the family that 
                                        accrued before the 
                                        family received 
                                        assistance from the 
                                        State.
                                          [(bb) Reimbursement 
                                        of governments for 
                                        assistance provided to 
                                        the family.--After the 
                                        application of clause 
                                        (i)(II)(aa) and 
                                        division (aa) with 
                                        respect to the amount 
                                        so collected, the State 
                                        shall retain the State 
                                        share of the amount so 
                                        collected, and pay to 
                                        the Federal Government 
                                        the Federal share (as 
                                        defined in subsection 
                                        (c)(2)) of the amount 
                                        so collected, but only 
                                        to the extent necessary 
                                        to reimburse amounts 
                                        paid to the family as 
                                        assistance by the 
                                        State.
                                          [(cc) Distribution of 
                                        the remainder to the 
                                        family.--To the extent 
                                        that neither division 
                                        (aa) nor division (bb) 
                                        applies to the amount 
                                        so collected, the State 
                                        shall distribute the 
                                        amount to the family.
                          [(iii) Distribution of arrearages 
                        that accrued while the family received 
                        assistance.--In the case of a family 
                        described in this subparagraph, the 
                        provisions of paragraph (1) shall apply 
                        with respect to the distribution of 
                        support arrearages that accrued while 
                        the family received assistance.
                          [(iv) Amounts collected pursuant to 
                        section 464.--Notwithstanding any other 
                        provision of this section, any amount 
                        of support collected pursuant to 
                        section 464 shall be retained by the 
                        State to the extent past-due support 
                        has been assigned to the State as a 
                        condition of receiving assistance from 
                        the State, up to the amount necessary 
                        to reimburse the State for amounts paid 
                        to the family as assistance by the 
                        State. The State shall pay to the 
                        Federal Government the Federal share of 
                        the amounts so retained. To the extent 
                        the amount collected pursuant to 
                        section 464 exceeds the amount so 
                        retained, the State shall distribute 
                        the excess to the family.
                          [(v) Ordering rules for 
                        distributions.--For purposes of this 
                        subparagraph, unless an earlier 
                        effective date is required by this 
                        section, effective October 1, 2000, the 
                        State shall treat any support 
                        arrearages collected, except for 
                        amounts collected pursuant to section 
                        464, as accruing in the following 
                        order:
                                  [(I) To the period after the 
                                family ceased to receive 
                                assistance.
                                  [(II) To the period before 
                                the family received assistance.
                                  [(III) To the period while 
                                the family was receiving 
                                assistance.
          [(3) Families that never received assistance.--In the 
        case of any other family, the State shall distribute 
        the amount so collected to the family.
          [(4) Families under certain agreements.--In the case 
        of an amount collected for a family in accordance with 
        a cooperative agreement under section 454(33), 
        distribute the amount so collected pursuant to the 
        terms of the agreement.
          [(5) Study and report.--Not later than October 1, 
        1999, the Secretary shall report to the Congress the 
        Secretary's findings with respect to--
                  [(A) whether the distribution of post-
                assistance arrearages to families has been 
                effective in moving people off of welfare and 
                keeping them off of welfare;
                  [(B) whether early implementation of a pre-
                assistance arrearage program by some States has 
                been effective in moving people off of welfare 
                and keeping them off of welfare;
                  [(C) what the overall impact has been of the 
                amendments made by the Personal Responsibility 
                and Work Opportunity Reconciliation Act of 1996 
                with respect to child support enforcement in 
                moving people off of welfare and keeping them 
                off of welfare; and
                  [(D) based on the information and data the 
                Secretary has obtained, what changes, if any, 
                should be made in the policies related to the 
                distribution of child support arrearages.
          [(6) State option for applicability.--Notwithstanding 
        any other provision of this subsection, a State may 
        elect to apply the rules described in clauses (i)(II), 
        (ii)(II), and (v) of paragraph (2)(B) to support 
        arrearages collected on and after October 1, 1998, and, 
        if the State makes such an election, shall apply the 
        provisions of this section, as in effect and applied on 
        the day before the date of enactment of section 302 of 
        the Personal Responsibility and Work Opportunity 
        Reconciliation Act of 1996 (Public Law 104-193, 110 
        Stat. 2200), other than subsection (b)(1) (as so in 
        effect), to amounts collected before October 1, 1998.]
  (a) In General.--Subject to subsections (d) and (e), the 
amounts collected on behalf of a family as support by a State 
pursuant to a plan approved under this part shall be 
distributed as follows:
          (1) Families receiving assistance.--In the case of a 
        family receiving assistance from the State, the State 
        shall--
                  (A) pay to the Federal Government the Federal 
                share of the amount collected, subject to 
                paragraph (3)(A);
                  (B) retain, or pay to the family, the State 
                share of the amount collected, subject to 
                paragraph (3)(B); and
                  (C) pay to the family any remaining amount.
          (2) Families that formerly received assistance.--In 
        the case of a family that formerly received assistance 
        from the State:
                  (A) Current support.--To the extent that the 
                amount collected does not exceed the current 
                support amount, the State shall pay the amount 
                to the family.
                  (B) Arrearages.--To the extent that the 
                amount collected exceeds the current support 
                amount, the State--
                          (i) shall first pay to the family the 
                        excess amount, to the extent necessary 
                        to satisfy support arrearages not 
                        assigned pursuant to section 408(a)(3);
                          (ii) if the amount collected exceeds 
                        the amount required to be paid to the 
                        family under clause (i), shall--
                                  (I) pay to the Federal 
                                Government, the Federal share 
                                of the excess amount described 
                                in this clause, subject to 
                                paragraph (3)(A); and
                                  (II) retain, or pay to the 
                                family, the State share of the 
                                excess amount described in this 
                                clause, subject to paragraph 
                                (3)(B); and
                          (iii) shall pay to the family any 
                        remaining amount.
          (3) Limitations.--
                  (A) Federal reimbursements.--The total of the 
                amounts paid by the State to the Federal 
                Government under paragraphs (1) and (2) of this 
                subsection with respect to a family shall not 
                exceed the Federal share of the amount assigned 
                with respect to the family pursuant to section 
                408(a)(3).
                  (B) State reimbursements.--The total of the 
                amounts retained by the State under paragraphs 
                (1) and (2) of this subsection with respect to 
                a family shall not exceed the State share of 
                the amount assigned with respect to the family 
                pursuant to section 408(a)(3).
          (4) Families that never received assistance.--In the 
        case of any other family, the State shall pay the 
        amount collected to the family.
          (5) Families under certain agreements.--
        Notwithstanding paragraphs (1) through (4), in the case 
        of an amount collected for a family in accordance with 
        a cooperative agreement under section 454(33), the 
        State shall distribute the amount collected pursuant to 
        the terms of the agreement.
          (6) State financing options.--To the extent that the 
        State share of the amount payable to a family for a 
        month pursuant to paragraph (2)(B) of this subsection 
        exceeds the amount that the State estimates (under 
        procedures approved by the Secretary) would have been 
        payable to the family for the month pursuant to former 
        section 457(a)(2) (as in effect for the State 
        immediately before the date this subsection first 
        applies to the State) if such former section had 
        remained in effect, the State may elect to use the 
        grant made to the State under section 403(a) to pay the 
        amount, or to have the payment considered a qualified 
        State expenditure for purposes of section 409(a)(7), 
        but not both.

           *       *       *       *       *       *       *

  (c) Definitions.--As used in subsection (a):
          (1) * * *

           *       *       *       *       *       *       *

          (5) Current support amount.--The term ``current 
        support amount'' means, with respect to amounts 
        collected as support on behalf of a family, the amount 
        designated as the monthly support obligation of the 
        noncustodial parent in the order requiring the support.

           *       *       *       *       *       *       *

SEC. 459. CONSENT BY THE UNITED STATES TO INCOME WITHHOLDING, 
                    GARNISHMENT, AND SIMILAR PROCEEDINGS FOR 
                    ENFORCEMENT OF CHILD SUPPORT AND ALIMONY 
                    OBLIGATIONS.

  (a) * * *

           *       *       *       *       *       *       *

  (h) Moneys Subject to Process.--
          (1) In general.--Subject to paragraph (2), moneys 
        payable to an individual which are considered to be 
        based upon remuneration for employment, for purposes of 
        this section--
                  (A) consist of--
                          (i) * * *
                          (ii) periodic benefits (including a 
                        periodic benefit as defined in section 
                        228(h)(3)) or other payments--
                                  (I) * * *

           *       *       *       *       *       *       *

                                  (V) by the Secretary of 
                                Veterans Affairs as 
                                compensation for a service-
                                connected disability paid by 
                                the Secretary to a former 
                                member of the Armed Forces [who 
                                is in receipt of retired or 
                                retainer pay if the former 
                                member has waived a portion of 
                                the retired or retainer pay in 
                                order to receive such 
                                compensation];

           *       *       *       *       *       *       *

          (3) Limitations with respect to compensation paid to 
        veterans for service-connected disabilities.--
        Notwithstanding any other provision of this section:
                  (A) Compensation described in paragraph 
                (1)(A)(ii)(V) shall not be subject to 
                withholding pursuant to this section--
                          (i) for payment of alimony; or
                          (ii) for payment of child support if 
                        the individual is fewer than 60 days in 
                        arrears in payment of the support.
                  (B) Not more than 50 percent of any payment 
                of compensation described in paragraph 
                (1)(A)(ii)(V) may be withheld pursuant to this 
                section.

           *       *       *       *       *       *       *

        COLLECTION OF PAST-DUE SUPPORT FROM FEDERAL TAX REFUNDS

  Sec. 464. (a)(1) * * *
  (2)(A) Upon receiving notice from a State agency 
administering a plan approved under this part that a named 
individual owes past-due support [(as that term is defined for 
purposes of this paragraph under subsection (c))] which such 
State has agreed to collect under section 454(4)(A)(ii), and 
that the State agency has sent notice to such individual in 
accordance with paragraph (3)(A), the Secretary of the Treasury 
shall determine whether any amounts, as refunds of Federal 
taxes paid, are payable to such individual (regardless of 
whether such individual filed a tax return as a married or 
unmarried individual). If the Secretary of the Treasury finds 
that any such amount is payable, he shall withhold from such 
refunds an amount equal to such past-due support, and shall 
concurrently send notice to such individual that the 
withholding has been made, including in or with such notice a 
notification to any other person who may have filed a joint 
return with such individual of the steps which such other 
person may take in order to secure his or her proper share of 
the refund. The Secretary of the Treasury shall pay the amount 
withheld to the State agency, and the State shall pay to the 
Secretary of the Treasury any fee imposed by the Secretary of 
the Treasury to cover the costs of the withholding and any 
required notification. The State agency shall, subject to 
paragraph (3)(B), distribute such amount to or on behalf of the 
child to whom the support was owed in accordance with section 
457. This subsection may be executed by the Secretary of the 
Department of the Treasury or his designee.

           *       *       *       *       *       *       *

  (c)[(1) Except as provided in paragraph (2), as used in] In 
this part the term ``past-due support'' means the amount of a 
delinquency, determined under a court order, or an order of an 
administrative process established under State law, for support 
and maintenance of a child (whether or not a minor), or of a 
child (whether or not a minor) and the parent with whom the 
child is living.
  [(2) For purposes of subsection (a)(2), the term ``past-due 
support'' means only past-due support owed to or on behalf of a 
qualified child (or a qualified child and the parent with whom 
the child is living if the same support order includes support 
for the child and the parent).
  [(3) For purposes of paragraph (2), the term ``qualified 
child'' means a child--
          [(A) who is a minor; or
          [(B)(i) who, while a minor, was determined to be 
        disabled under title II or XVI; and
          [(ii) for whom an order of support is in force.]

           *       *       *       *       *       *       *

      REQUIREMENT OF STATUTORILY PRESCRIBED PROCEDURES TO IMPROVE 
               EFFECTIVENESS OF CHILD SUPPORT ENFORCEMENT

  Sec. 466. (a) In order to satisfy section 454(20)(A), each 
State must have in effect laws requiring the use of the 
following procedures, consistent with this section and with 
regulations of the Secretary, to increase the effectiveness of 
the program which the State administers under this part:
          (1) * * *

           *       *       *       *       *       *       *

          (10) Review and adjustment of support orders [upon 
        request].--
                  (A) 3-year cycle.--
                          (i) In general.--Procedures under 
                        which every 3 years (or such shorter 
                        cycle as the State may determine), upon 
                        the request of either parent, [or,] or 
                        if there is an assignment under part A, 
                        [upon the request of the State agency 
                        under the State plan or of either 
                        parent,] the State shall with respect 
                        to a support order being enforced under 
                        this part, taking into account the best 
                        interests of the child involved--
                                  (I) * * *

           *       *       *       *       *       *       *

                  (C) Notice of right to review.--Procedures 
                which require the State to provide notice not 
                less than once every 3 years to the parents 
                subject to the order informing the parents of 
                their right to request the State to review and, 
                if appropriate, adjust the order pursuant to 
                [this paragraph] subparagraph (A) or (B). The 
                notice may be included in the order.
                  (D) Review upon leaving tanf.--On receipt of 
                a notice issued pursuant to section 402(a)(8), 
                the State child support enforcement agency 
                shall--
                          (i) examine the case file involved;
                          (ii) determine what actions (if any) 
                        are needed to locate any noncustodial 
                        parent, establish paternity or a 
                        support order, or enforce a support 
                        order in the case;
                          (iii) immediately take the actions; 
                        and
                          (iv) if there is a support order in 
                        the case which the State has not 
                        reviewed during the 1-year period 
                        ending with receipt of the notice, 
                        notwithstanding subparagraph (B), 
                        review and, if appropriate, adjust the 
                        order in accordance with subparagraph 
                        (A).

           *       *       *       *       *       *       *

Part E--Federal Payments for Foster Care and Adoption Assistance

           *       *       *       *       *       *       *

                PAYMENTS TO STATES; ALLOTMENTS TO STATES

  Sec. 474. (a) For each quarter beginning after September 30, 
1980, each State which has a plan approved under this part 
shall be entitled to a payment equal to the sum of--
          (1) * * *

           *       *       *       *       *       *       *

          (3) an amount equal to the sum of the following 
        proportions of the total amounts expended during such 
        quarter as found necessary by the Secretary for the 
        provision of child placement services and for the 
        proper and efficient administration of the State plan--
                  (A) * * *
                  (B) 75 percent of so much of such 
                expenditures (including travel and per diem 
                expenses) as are for the short-term training of 
                current or prospective foster or adoptive 
                parents and the members of the staff of State-
                licensed or State-approved child care 
                institutions, or State-licensed or State-
                approved child welfare agencies providing 
                services, providing care to foster and adopted 
                children receiving assistance under this part, 
                in ways that increase the ability of such 
                current or prospective parents, staff members, 
                and institutions to provide support and 
                assistance to foster and adopted children, 
                whether incurred directly by the State or by 
                contract.

           *       *       *       *       *       *       *

                              ----------                              

    SECTION 104 OF THE PERSONAL RESPONSIBILITY AND WORK OPPORTUNITY 
                       RECONCILIATION ACT OF 1996

SEC. 104. SERVICES PROVIDED BY CHARITABLE, RELIGIOUS, OR 
                    PRIVATE ORGANIZATIONS.

  (a) * * *

           *       *       *       *       *       *       *

  (l) Notwithstanding the preceding provisions of this section, 
this section shall apply to any entity to which funds have been 
provided under section 403A of the Social Security Act in the 
same manner in which this section applies to States, and, for 
purposes of this section, any project for which such funds are 
so provided shall be considered a program described in 
subsection (a)(2).
                              ----------                              

                    IMMIGRATION AND NATIONALITY ACT

TITLE II--IMMIGRATION

           *       *       *       *       *       *       *

 Chapter 2--Qualifications for Admission of Aliens; Travel Control of 
Citizens and Aliens

           *       *       *       *       *       *       *

 general classes of aliens ineligible to receive visas and ineligible 
               for admission; waivers of inadmissibility

      Sec. 212. (a) Classes of Aliens Ineligible for Visas or 
Admission.--Except as otherwise provided in this Act, aliens 
who are inadmissible under the following paragraphs are 
ineligible to receive visas and ineligible to be admitted to 
the United States:
          (1) * * *

           *       *       *       *       *       *       *

          (10) Miscellaneous.--
                  (A) * * *

           *       *       *       *       *       *       *

                  (F) Nonpayment of child support.--
                          (i) In general.--Any nonimmigrant 
                        alien is inadmissible who is legally 
                        obligated under a judgment, decree, or 
                        order to pay child support (as defined 
                        in section 459(i) of the Social 
                        Security Act), and whose failure to pay 
                        such child support has resulted in an 
                        arrearage exceeding $2,500, until child 
                        support payments under the judgment, 
                        decree, or order are satisfied or the 
                        nonimmigrant alien is in compliance 
                        with an approved payment agreement.
                          (ii) Waiver authorized.--The Attorney 
                        General may waive the application of 
                        clause (i) in the case of an alien, if 
                        the Attorney General--
                                  (I) has received a request 
                                for the waiver from the court 
                                or administrative agency having 
                                jurisdiction over the judgment, 
                                decree, or order obligating the 
                                alien to pay child support that 
                                is referred to in such clause; 
                                or
                                  (II) determines that there 
                                are prevailing humanitarian or 
                                public interest concerns.

           *       *       *       *       *       *       *

   Chapter 4--Inspection, Apprehension, Examination, Exclusion, and 
Removal

           *       *       *       *       *       *       *

 inspection by immigration officers; expedited removal of inadmissible 
                 arriving aliens; referral for hearing

  Sec. 235. (a) * * *

           *       *       *       *       *       *       *

  (d) Authority Relating to Inspections.--
          (1) * * *

           *       *       *       *       *       *       *

          (5) Authority to serve process in child support 
        cases.--
                  (A) In general.--To the extent consistent 
                with State law, immigration officers are 
                authorized to serve on any alien who is an 
                applicant for admission to the United States 
                legal process with respect to any action to 
                enforce or establish a legal obligation of an 
                individual to pay child support (as defined in 
                section 459(i) of the Social Security Act).
                  (B) Definition.--For purposes of subparagraph 
                (A), the term ``legal process'' means any writ, 
                order, summons or other similar process, which 
                is issued by--
                          (i) a court or an administrative 
                        agency of competent jurisdiction in any 
                        State, territory, or possession of the 
                        United States; or
                          (ii) an authorized official pursuant 
                        to an order of such a court or agency 
                        or pursuant to State or local law.

           *       *       *       *       *       *       *

            VII. LETTER FROM THE COMMITTEE ON THE JUDICIARY

                          House of Representatives,
                                Committee on the Judiciary,
                                     Washington, DC, July 21, 2000.
Hon. Bill Archer,
Chairman, Committee on Ways and Means,
House of Representatives, Washington, DC.
    Dear Chairman Archer: I am writing to you concerning the 
bill H.R. 4678, the ``Child Support Distribution Act of 2000.''
    As you know, this bill contains language which falls within 
the Rule X jurisdiction of this committee relating to the 
Immigration and Nationality Act's ability to deny passports if 
one owes $2,500 in child support arrearage, to deny any non-
immigrant alien's admission or visa to the United States for 
non-payment of child support, to serve legal process on any 
alien who is an applicant for admission to the United States, 
and to share child support information to enforce immigration 
laws. I understand that you would like to proceed expeditiously 
to the floor on this matter. I am willing to waive our 
committee's right to mark up this bill. However, this, of 
course, does not waive our jurisdiction over the subject matter 
on this or similar legislation, or our desire to be conferees 
on this bill should it be subject to a House-Senate conference 
committee.
    I would appreciate your placing this exchange of letters in 
the Congressional Record. Thank you for your cooperation on 
this matter.
            Sincerely,
                                             Henry J. Hyde,
                                                          Chairman.

                                  
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