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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1250 Introduced in House (IH)]

104th CONGRESS
  1st Session
                                H. R. 1250

To promote self-sufficiency and stability among families receiving aid 
     to families with dependent children by increasing employment 
    opportunities; to increase State flexibility in operating a Job 
    Opportunities and Basic Skills Training Program; to improve the 
interstate enforcement of child support and parentage court orders; and 
                          for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             March 15, 1995

 Mrs. Mink of Hawaii (for herself, Mr. Abercrombie, Mr. Ackerman, Mr. 
  Becerra, Mr. Beilenson, Mr. Bishop, Ms. Brown of Florida, Mr. Clay, 
Mrs. Clayton, Mr. Clyburn, Mr. Coleman, Miss Collins of Michigan, Mrs. 
  Collins of Illinois, Mr. Conyers, Mr. de la Garza, Mr. Dellums, Mr. 
     Engel, Mr. Evans, Mr. Faleomavaega, Mr. Fattah, Mr. Fields of 
 Louisiana, Mr. Flake, Mr. Foglietta, Mr. Frank of Massachusetts, Ms. 
   Furse, Mr. Gonzalez, Mr. Gutierrez, Mr. Hastings of Florida, Mr. 
   Hilliard, Mr. Hinchey, Ms. Jackson-Lee, Mr. Jefferson, Ms. Eddie 
    Bernice Johnson of Texas, Mr. Johnston of Florida, Mr. Lewis of 
   Georgia, Mr. Martinez, Mr. McDermott, Ms. McKinney, Mrs. Meek of 
 Florida, Mr. Mfume, Mr. Miller of California, Mr. Mineta, Ms. Norton, 
Mr. Olver, Mr. Owens, Mr. Pastor, Mr. Payne of New Jersey, Ms. Pelosi, 
 Mr. Reynolds, Mr. Richardson, Mr. Romero-Barcelo, Ms. Roybal-Allard, 
    Mr. Rush, Mr. Sabo, Mr. Sanders, Mrs. Schroeder, Mr. Scott, Mr. 
 Serrano, Mr. Stark, Mr. Stokes, Mr. Studds, Mr. Thompson, Mr. Torres, 
  Mr. Towns, Mr. Tucker, Mr. Underwood, Ms. Velazquez, Mr. Vento, Ms. 
   Waters, Mr. Watt of North Carolina, Mr. Waxman, Mr. Williams, Ms. 
Woolsey, Mr. Wynn, and Mr. Yates) introduced the following bill; which 
was referred to the Committee on Ways and Means, and in addition to the 
  Committees on Economic and Educational Opportunities, Agriculture, 
 Commerce, the Judiciary, National Security, and Government Reform and 
 Oversight, for a period to be subsequently determined by the Speaker, 
 in each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL

 
To promote self-sufficiency and stability among families receiving aid 
     to families with dependent children by increasing employment 
    opportunities; to increase State flexibility in operating a Job 
    Opportunities and Basic Skills Training Program; to improve the 
interstate enforcement of child support and parentage court orders; and 
                          for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Family Stability and Work Act of 
1995''.

SEC. 2. REFERENCE TO SOCIAL SECURITY ACT.

    Except as otherwise specifically provided, wherever in this Act an 
amendment is expressed in terms of an amendment to or repeal of a 
section or other provision, the reference shall be considered to be 
made to that section or other provision of the Social Security Act.

SEC. 3. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Reference to Social Security Act.
Sec. 3. Table of contents.
       TITLE I--IMPROVING AID TO FAMILIES WITH DEPENDENT CHILDREN

Sec. 101. Increase in standard earned income disregard.
Sec. 102. Increase in State flexibility regarding recipient 
                            participation in jobs program.
Sec. 103. Elimination of different treatment of 2-parent families.
Sec. 104. Extension of transitional child care guarantee.
Sec. 105. Increase in Federal matching rates for child care.
Sec. 106. Increase in jobs program funding.
Sec. 107. Requirement with respect to jobs program participation rate.
Sec. 108. Increase in matching rates for States whose recipients leave 
                            AFDC for paid employment.
Sec. 109. Increase in at-risk child care funding.
Sec. 110. Improvements in jobs program self-sufficiency planning and 
                            case management.
Sec. 111. Change in mandatory services and activities under the jobs 
                            program.
Sec. 112. Jobs creation and work experience program.
Sec. 113. Provisions generally applicable to the jobs program.
                       TITLE II--MAKING WORK PAY

Sec. 201. Transitional medicaid benefits.
Sec. 202. Temporary exclusion of earned income for purposes of 
                            determining rent paid for units in 
                            federally assisted housing.
Sec. 203. Continuation of food stamp benefits.
             TITLE III--IMPROVING CHILD SUPPORT ENFORCEMENT

Subtitle A--Eligibility and Other Matters Concerning Title IV-D Program 
                                Clients

Sec. 301. State obligation to provide paternity establishment and child 
                            support enforcement services.
Sec. 302. Distribution of payments.
Sec. 303. Due process rights.
Sec. 304. Privacy safeguards.
             Subtitle B--Program Administration and Funding

Sec. 311. Federal matching payments.
Sec. 312. Performance-based incentives and penalties.
Sec. 313. Federal and State reviews and audits.
Sec. 314. Required reporting procedures.
Sec. 315. Automated data processing requirements.
Sec. 316. Director of CSE program; staffing study.
Sec. 317. Funding for secretarial assistance to State programs.
Sec. 318. Reports and data collection by the Secretary.
                  Subtitle C--Locate and Case Tracking

Sec. 321. Central State and case registry.
Sec. 322. Centralized collection and disbursement of support payments.
Sec. 323. Amendments concerning income withholding.
Sec. 324. Locator information from interstate networks.
Sec. 325. Expanded Federal Parent Locator Service.
Sec. 326. Use of social security numbers.
         Subtitle D--Streamlining and Uniformity of Procedures

Sec. 331. Adoption of uniform State laws
Sec. 332. Improvements to full faith and credit for child support 
                            orders.
Sec. 333. State laws providing expedited procedures
                  Subtitle E--Paternity Establishment

Sec. 341. State laws concerning paternity establishment.
Sec. 342. Outreach for voluntary paternity establishment.
      Subtitle F--Establishment and Modification of Support Orders

Sec. 351. National Child Support Guidelines Commission.
Sec. 352. Simplified process for review and adjustment of child support 
                            orders.
               Subtitle G--Enforcement of Support Orders

Sec. 361. Federal income tax refund offset.
Sec. 362. Internal revenue service collection of arrears.
Sec. 363. Authority to collect support from Federal employees.
Sec. 364. Enforcement of child support obligations of members of the 
                            Armed Forces.
Sec. 365. Motor vehicle liens.
Sec. 366. Voiding of fraudulent transfers.
Sec. 367. State law authorizing suspension of licenses.
Sec. 368. Reporting arrearages to credit bureaus.
Sec. 369. Extended statute of limitation for collection of arrearages.
Sec. 370. Charges for arrearages.
Sec. 371. Denial of passports for nonpayment of child support.
Sec. 372. International child support enforcement.
                      Subtitle H--Medical Support

Sec. 381. Technical correction to ERISA definition of medical child 
                            support order.
                    Subtitle I--Effect of Enactment

Sec. 391. Effective dates.
Sec. 392. Severability.
  TITLE IV--REAUTHORIZATION OF CHILD CARE AND DEVELOPMENT BLOCK GRANT

Sec. 431. Reauthorization of child care and development block grant.
            TITLE V--AMENDMENTS TO THE INTERNAL REVENUE CODE

Sec. 501. Increase in top marginal rate under section 11.
                        TITLE VI--EFFECTIVE DATE

Sec. 601. Effective date.

       TITLE I--IMPROVING AID TO FAMILIES WITH DEPENDENT CHILDREN

SEC. 101. INCREASE IN STANDARD EARNED INCOME DISREGARD.

    Clause (ii) of section 402(a)(8)(A) (42 U.S.C. 602(a)(8)(A)(ii)) is 
amended by striking ``$90'' and inserting ``$170''.

SEC. 102. INCREASE IN STATE FLEXIBILITY REGARDING RECIPIENT 
              PARTICIPATION IN JOBS PROGRAM.

    (a) Changes in State Plan Requirements.--Paragraph (19) of section 
402(a) (42 U.S.C. 602(a)(19)) is amended to read as follows:
            ``(19) provide--
                    ``(A) that the State has in effect and operation a 
                job opportunities and basic skills training program 
                which meets the requirements of part F;
                    ``(B) that, not later than 30 days after approving 
                the application of a family for aid under the State 
                plan approved under this part, the State shall--
                            ``(i) conduct an initial assessment of the 
                        self-sufficiency needs of the family that 
                        includes an assessment of the family 
                        circumstances, the educational, child care, and 
                        other supportive services needs, and the 
                        skills, prior work experience, and 
                        employability of each recipient;
                            ``(ii) determine whether it would be 
                        appropriate to require or permit any member of 
                        the family to participate in the program of the 
                        State under part F; and
                            ``(iii) advise the family of the 
                        availability of child care assistance under 
                        section 402(g) for participation in education, 
                        training, and employment;
                    ``(C) that--
                            ``(i) the costs of attendance by a 
                        recipient at an institution of higher education 
                        (as defined in section 481(a) of the Higher 
                        Education Act of 1965), or a school or course 
                        of vocational or technical training, shall not 
                        constitute federally reimbursable expenses for 
                        purposes of section 403; and
                            ``(ii) the costs of day care, 
                        transportation, and other services which are 
                        necessary (as determined by the State agency) 
                        for such attendance in accordance with section 
                        402(g) are eligible for Federal reimbursement 
                        so long as the recipient is making satisfactory 
                        progress in such institution, school, or course 
                        and such attendance is consistent with the 
                        employment goals in the recipient's self-
                        sufficiency plan developed under part F;
                    ``(D) that--
                            ``(i) if an individual who is required by 
                        the State to participate in the program of the 
                        State under part F fails without good cause to 
                        participate or refuses without good cause to 
                        accept employment in which such individual is 
                        able to engage which is offered through the 
                        public employment offices of the State, or is 
                        otherwise offered by an employer if the offer 
                        of such employer is determined to be a bona 
                        fide offer of employment--
                                    ``(I) the family of the individual 
                                shall cease to be eligible for aid 
                                under this part; unless
                                    ``(II) such individual is a member 
                                of a family in which both parents are 
                                living at home, and his or her spouse 
                                has not failed to comply under this 
                                clause, in which case the needs of such 
                                individual shall not be taken into 
                                account in making the determination 
                                with respect to his or her family under 
                                paragraph (7) of this subsection;
                            ``(ii) any sanction described in clause (i) 
                        shall continue until the failure to comply 
                        ceases;
                            ``(iii) no sanction shall be imposed under 
                        this subparagraph--
                                    ``(I) on the basis of the refusal 
                                of an individual to accept any 
                                employment (including any employment 
                                offered under the program), if the 
                                employment does not pay at least the 
                                Federal minimum wage under section 6(a) 
                                of the Fair Labor Standards Act of 
                                1938; or
                                    ``(II) on the basis of the refusal 
                                of an individual to participate in the 
                                program or accept employment (including 
                                any employment offered under the 
                                program), if child care (or day care 
                                for any incapacitated individual living 
                                in the same home as a dependent child) 
                                is necessary for an individual to 
                                participate in the program or accept 
                                employment, such care is not available, 
                                and the State agency fails to provide 
                                such care; and
                    ``(H) the State agency may require a participant in 
                the program to accept a job only if such agency assures 
                that the family of such participant will experience no 
                net loss of cash income resulting from acceptance of 
                the job; and any costs incurred by the State agency as 
                a result of this subparagraph shall be treated as 
                expenditures with respect to which section 403(a)(1) or 
                403(a)(2) applies;''.
    (b) Change in Payment to States.--Section 403(l) (42 U.S.C. 603(l)) 
is amended by striking paragraph (2).

SEC. 103. ELIMINATION OF DIFFERENT TREATMENT OF 2-PARENT FAMILIES.

    (a) In General.--Section 402(a) (42 U.S.C. 602(a)) is amended by 
striking paragraph (41).
    (b) Conforming Amendments.--
            (1) Section 402(a)(38)(B) (42 U.S.C. 602(a)(38)(B)) is 
        amended by striking ``or in section 407(a)''.
            (2) Section 402(a) (42 U.S.C. 602(a)) is amended by 
        striking paragraph (42).
            (3) Section 402(g)(1)(A)(ii) (42 U.S.C. 602(g)(1)(A)(ii)) 
        is amended by striking ``hours of, or increased income from,'' 
        and inserting ``income from''.
            (4) Section 406(a)(1) (42 U.S.C. 606(a)(1)) is amended by 
        striking ``who has been deprived'' and all that follows through 
        ``incapacity of a parent''.
            (5) Section 406(b)(1) (42 U.S.C. 606(b)(1)) is amended by 
        striking ``and if such relative'' and all that follows through 
        ``section 407''.
            (6) Section 407 (42 U.S.C. 607) is hereby repealed.
            (7) Section 472(a) (42 U.S.C. 672(a)) is amended by 
        striking ``or of section 407''.
            (8) Section 473(a)(2)(A)(i) (42 U.S.C. 672(a)(2)(A)(i)) is 
        amended by striking ``or section 407''.
            (9) Section 1115(b) (42 U.S.C. 1315(b)) is amended by 
        striking paragraph (5).
            (10) Section 1115 (42 U.S.C. 1315) is amended by striking 
        subsection (d).
            (11) Section 1902(a)(10)(A)(i) (42 U.S.C. 
        1396a(a)(10)(A)(i)) is amended by striking subclause (V) and by 
        redesignating subclauses (VI) and (VII) as subclauses (V) and 
        (VI), respectively.
            (12) Section 1905 (42 U.S.C. 1396d) is amended by striking 
        subsection (m).
            (13) Section 1905(n)(1) (42 U.S.C. 1396d(n)(1)) is 
        amended--
                    (A) in subparagraph (A)--
                            (i) by striking ``(or'' and all that 
                        follows through ``407)''; and
                            (ii) by adding ``or'' at the end; and
                    (B) by striking subparagraph (B).
            (14) Section 1925(a) (42 U.S.C. 1396r-6(a)) is amended by 
        striking ``hours of, or income from,'' and inserting ``income 
        from''.
            (15) Section 204(b)(2) of the Family Support Act of 1988 
        (42 U.S.C. 681 note) is amended by striking the semicolon and 
        all that follows through ``1998''.

SEC. 104. EXTENSION OF TRANSITIONAL CHILD CARE GUARANTEE.

    Clause (iii) of section 402(g)(1)(A) (42 U.S.C. 602(g)(1)(A)(iii)) 
is amended to read as follows:
    ``(iii) A family shall only be eligible for child care provided 
under clause (ii)--
            ``(I) for a period of 24 months after the last month for 
        which the family received aid to families with dependent 
        children under this part; or
            ``(II) until the income of the family exceeds by more than 
        200 percent the income official poverty line (as defined by the 
        Office of Management and Budget, and revised annually in 
        accordance with section 673(2) of the Omnibus Budget 
        Reconciliation Act of 1981) applicable to a family of the size 
        involved;
        whichever occurs first.''.

SEC. 105. INCREASE IN FEDERAL MATCHING RATES FOR CHILD CARE.

    (a) AFDC and Transitional Child Care.--
            (1) Increase in rates for several states and district of 
        columbia.--Clause (i) of section 402(g)(3)(A) (42 U.S.C. 
        602(g)(3)(A)(i)) is amended by striking ``1905(b)).'' and 
        inserting ``1905(b)), increased by 10 percentage points.''.
            (2) Increase in rates for other states.--Clause (ii) of 
        section 402(g)(3)(A) (42 U.S.C. 602(g)(3)(A)(ii)) is amended by 
        striking ``1118).'' and inserting ``1118), increased by 10 
        percentage points.''.
    (b) At-Risk Child Care.--Subparagraph (A) of section 403(n)(1) (42 
U.S.C. 603(n)(1)(A)) is amended by inserting ``increased by 10 
percentage points'' before ``of the expenditures''.

SEC. 106. INCREASE IN JOBS PROGRAM FUNDING.

    Paragraph (3) of section 403(k) (42 U.S.C. 603(k)(3)) is amended--
            (1) in subparagraph (E), by striking ``and'' at the end;
            (2) in subparagraph (F), by striking ``and each succeeding 
        fiscal year,'' and inserting a comma at the end; and
            (3) by inserting after subparagraph (F) the following:
            ``(G) $1,500,000,000 in the case of fiscal year 1997,
            ``(H) $1,900,000,000 in the case of fiscal year 1998,
            ``(I) $2,800,000,000 in the case of fiscal year 1999,
            ``(J) $3,700,000,000 in the case of fiscal year 2000, and
            ``(K) $5,000,000,000 in the case of fiscal year 2001,''.

SEC. 107. REQUIREMENT WITH RESPECT TO JOBS PROGRAM PARTICIPATION RATE.

    (a) Requirement.--Section 402 (42 U.S.C. 602) is amended by 
inserting after subsection (c) the following:
    ``(d)(1) With respect to the program established by a State under 
part F, the State shall achieve a participation rate for the following 
fiscal years of not less than the following percentage:

``Fiscal year:                                              Percentage:
    1997..........................................                   15
    1998..........................................                   20
    1999..........................................                   25
    2000..........................................                   30
    2001..........................................                   35
    2002..........................................                   40
    2003 or later.................................                  50.
    ``(2) As used in this subsection, the term `participation rate' 
means, with respect to a State and a fiscal year, an amount equal to--
            ``(A) the average monthly number of individuals who, during 
        the fiscal year, participate in the State program established 
        under part F; divided by
            ``(B) the average monthly number of individuals who, during 
        the fiscal year, are adult recipients of aid under the State 
        plan approved under part A or participate in the State program 
        established under part F.
    ``(3) Each State that operates a program under part F for a fiscal 
year shall submit to the Secretary a report on the participation rate 
of the State for the fiscal year.
    ``(4)(A) If a State reports that the State has failed to achieve 
the participation rate required by paragraph (1) for the fiscal year, 
the Secretary may make recommendations for changes in the State program 
established under part F. The State may elect to follow such 
recommendations, and shall demonstrate to the Secretary how the State 
will achieve the required participation rates.
    ``(B) Notwithstanding subparagraph (A), if a State fails to achieve 
the participation rate required by paragraph (1) for 2 consecutive 
fiscal years, the Secretary may require the State to make changes in 
the State program established under part F.''.
    (b) Change in Payment to States.--Section 403(l) (42 U.S.C. 603(l)) 
is amended by striking paragraphs (3) and (4).

SEC. 108. INCREASE IN MATCHING RATES FOR STATES WHOSE RECIPIENTS LEAVE 
              AFDC FOR PAID EMPLOYMENT.

    (a) Increase in JOBS Matching Rate.--Section 403(l) (42 U.S.C. 
603(l)), as amended by section 102(b), is amended by inserting after 
paragraph (1) the following:
    ``(2)(A) Notwithstanding paragraph (1), the Secretary shall pay to 
a State, with respect to expenditures made by the State that are 
described in paragraph (1)(A)(ii)(II), an amount equal to the greater 
of 70 percent or the Federal medical assistance percentage (as defined 
in section 1118 in the case of any State to which section 1108 applies, 
or as defined in section 1905(b) in the case of any other State) 
increased by 10 percent if the number of qualified families with 
respect to the State for a fiscal year equals or exceeds the proportion 
specified in subparagraph (B) for such year of the total number of 
individuals participating in the State program established under part F 
during such year.
    ``(B) The proportion specified in this subparagraph is--
            ``(i) \1/4\ for fiscal year 1998;
            ``(ii) \1/3\ for fiscal year 1999;
            ``(iii) \1/2\ for fiscal year 2000, and for each fiscal 
        year thereafter.
    ``(C) For purposes of subparagraph (A), the term `qualified family' 
means, with respect to a State for a fiscal year, a family--
            ``(i) that was receiving aid from the State under this part 
        during such year;
            ``(ii) a member of which ceased to participate in the State 
        program established under part F during such year as the result 
        of the employment of such member in a job (other than a job 
        provided under the job creation and work experience program 
        under section 482(e)); and
            ``(iii) ceased to receive such aid as a result of such 
        employment.''
    (b) Increase in Transitional Child Care Rate.--Paragraph (3) of 
section 402(g) (42 U.S.C. 602(g)(3)) is amended by adding at the end 
the following:
    ``(C) Notwithstanding subparagraph (A), in the case of amounts 
expended for child care pursuant to paragraph (1)(A)(ii) by any State 
that satisfies the requirement in section 403(l)(2)(A), the applicable 
rate for purposes of section 403(a) shall be the percentage specified 
in subparagraph (A) for such amounts, increased by 10 percentage 
points.''.

SEC. 109. INCREASE IN AT-RISK CHILD CARE FUNDING.

    Subparagraph (B) of section 403(n)(2) (42 U.S.C. 603(n)(2)(B)) of 
the Social Security Act is amended--
            (1) in clause (iv), by striking ``and'' at the end;
            (2) in clause (v), by striking ``1995, and for each fiscal 
        year thereafter.'' and inserting ``1995;''; and
            (3) by adding at the end the following:
            ``(vi) $300,000,000 for fiscal year 1996;
            ``(vii) $800,000,000 for fiscal year 1997;
            ``(viii) $1,300,000,000 for fiscal year 1998;
            ``(ix) $1,800,000,000 for fiscal year 1999;
            ``(x) $2,300,000,000 for fiscal year 2000; and
            ``(xi) $2,800,000,000 for fiscal year 2001.''.

SEC. 110. IMPROVEMENTS IN JOBS PROGRAM SELF-SUFFICIENCY PLANNING AND 
              CASE MANAGEMENT.

    Section 482(b) (42 U.S.C. 682(b)) is amended--
            (1) by amending the subsection heading to read as follows:
    ``(b) Self-Sufficiency Plan.--'';
            (2) by striking paragraph (1)(A), redesignating paragraph 
        (1)(B) as paragraph (1)(A), and adjusting the placement and 
        margins of paragraph (1)(A) (as so redesignated) accordingly;
            (3) in paragraph (1)(A) (as redesignated by paragraph 
        (2))--
                    (A) by striking ``such assessment,'' and inserting 
                ``the initial assessment of self-sufficiency under 
                section 402(a)(19)(B),''; and
                    (B) by striking ``employability plan'' each place 
                such term appears and inserting ``self-sufficiency 
                plan'';
            (4) in paragraph (2)--
                    (A) by striking ``initial assessment and review and 
                the development of the employability plan'' and 
                inserting ``initial assessment of self-sufficiency and 
                the development of the self-sufficiency plan'';
                    (B) by striking ``the State agency may require'' 
                and inserting ``the State agency shall require''; and
                    (C) by striking ``If the State agency exercises the 
                option under the preceding sentence, the State agency 
                must'' and inserting ``The State agency must''; and
            (5) in paragraph (3)--
                    (A) by striking ``may assign'' and inserting 
                ``shall assign''; and
                    (B) by adding at the end the following:
``Case management services under this paragraph shall continue for a 
period of not fewer than 90 days after a participant becomes employed, 
and, at the option of the State, the State may extend such period to 
not more than 365 days.''.

SEC. 111. CHANGE IN MANDATORY SERVICES AND ACTIVITIES UNDER THE JOBS 
              PROGRAM.

    (a) Mandatory and Permissible Services and Activities.--
Subparagraph (A) of section 482(d)(1) (42 U.S.C. 682(d)(1)(A)) is 
amended to read as follows:
    ``(d) Services and Activities Under the Program.--(1)(A) In 
carrying out the program, each State shall make available a broad range 
of services and activities to aid in carrying out the purpose of this 
part. Such services and activities--
            ``(i) shall include--
                    ``(I) educational activities (as appropriate), 
                including high school or equivalent education (combined 
                with training as needed), basic and remedial education 
                to achieve a basic literacy level, and education for 
                individuals with limited English proficiency;
                    ``(II) job skills training;
                    ``(III) job readiness activities to help prepare 
                participants for work;
                    ``(IV) job development and job placement;
                    ``(V) a job creation and work experience program as 
                described in subsection (e); and
                    ``(VI) group and individual job search as described 
                in subsection (f); and
            ``(ii) may include--
                    ``(I) on-the-job training; and
                    ``(II) any other work experience program approved 
                by the Secretary.''.
    (b) Elimination of Requirement with Respect to Certain Educational 
Activities.--Section 482(d) (42 U.S.C. 682(d)) is amended--
            (1) by striking paragraph (2); and
            (2) by redesignating paragraph (3) as paragraph (2).

SEC. 112. JOBS CREATION AND WORK EXPERIENCE PROGRAM.

    Section 482 (42 U.S.C. 682) is amended--
    (1) by striking subsections (e) and (f);
    (2) by redesignating subsections (g), (h), and (i) as subsections 
(f), (g), and (h); and
            (3) by inserting after subsection (d) the following:
    ``(e) Jobs Creation and Work Experience Program.--
            ``(1) In general.--In carrying out the program, each State 
        shall establish a jobs creation and work experience program in 
        accordance with this subsection.
            ``(2) General requirements.--A jobs creation and work 
        experience program is a program that provides employment in the 
        public sector or in the private sector in accordance with the 
        following requirements:
                    ``(A) Participation.--A State shall require an 
                individual to participate in the jobs creation and work 
                experience program if the individual--
                            ``(i) is eligible to receive aid under the 
                        State plan approved under part A;
                            ``(ii) is prepared to commence employment, 
                        as determined under the self-sufficiency plan 
                        developed for the individual under subsection 
                        (b)(1)(A); and
                            ``(iii) has demonstrated that the 
                        individual is not otherwise able to obtain 
                        employment in the public or private sectors.
                    ``(B) Periodic job search required.--As a 
                continuing condition of eligibility to participate in 
                the jobs creation and work experience program, each 
                participant in the program shall periodically engage in 
                job search.
                    ``(C) Entry-level positions.--
                            ``(i) In general.--Subject to clause (ii), 
                        the jobs creation and work experience program 
                        shall provide entry-level positions, to the 
                        extent practicable.
                            ``(ii) No infringement on promotional 
                        opportunities.--A job shall not be created in a 
                        promotional line that will infringe in any way 
                        upon the promotional opportunities of persons 
                        employed in jobs not subsidized under this 
                        subsection.
                    ``(D) Maximum period of subsidized employment at 
                same position.--The jobs creation and work experience 
                program shall not permit an individual to remain in the 
                program for more than 24 months.
                    ``(E) Minimum wage requirement.--An individual 
                participating in the jobs creation and work experience 
                program may not be required to accept any employment if 
                the wage rate for such employment does not equal or 
                exceed the minimum wage rate then in effect under 
                section 6 of the Fair Labor Standards Act of 1938.
            ``(3) Wages treated as earned income.--Wages paid under a 
        program established under this subsection shall be considered 
        to be earned income for purposes of any provision of law.
            ``(4) Preservation of eligibility for child care assistance 
        and medicaid benefits.--Any individual who becomes ineligible 
        to receive aid under a State plan approved under part A by 
        reason of income from employment provided under a program 
        established under this subsection to the caretaker relative of 
        the family of which the individual is a member shall for 
        purposes of eligibility for child care benefits under section 
        402(g)(1)(A)(i) and for purposes of eligibility for medical 
        assistance under the State plan approved under title XIX, be 
        considered to be receiving such aid for so long as the 
        subsidized employment provided to the individual under this 
        subsection continues.''.

SEC. 113. PROVISIONS GENERALLY APPLICABLE TO THE JOBS PROGRAM.

    Section 484 (42 U.S.C. 684) is amended by striking subsections (b), 
(c), and (d) and inserting the following:
    ``(b)(1)(A) Funds provided for a program established under section 
482 may be used only for programs that do not duplicate any employment 
activity otherwise available in the locality of the program.
    ``(B) Funds provided for a program established under section 482 
shall not be paid to a private entity to conduct activities that are 
the same or substantially equivalent to activities provided by a State 
in which the entity is located or by an agency of local government with 
jurisdiction over the locality in which the entity is located, unless 
the requirements of paragraph (2) are met.
    ``(2)(A) An employer shall not displace an employee or position, 
including partial displacement such as reduction in hours, wages, or 
employment benefits, as a result of the use by the employer of a 
participant in a program established under section 482.
    ``(B) No work assignment under a program established under section 
482 shall result in any infringement of the promotional opportunities 
of any employed individual.
    ``(C)(i) A participant in a program established under section 
482(e) shall not perform any services or duties or engage in activities 
that would otherwise be performed by an employee as part of the 
assigned duties of the employee.
    ``(ii) A participant in a program established under section 482 
shall not perform any services or duties or engage in activities that--
            ``(I) will supplant the hiring of employed workers; or
            ``(II) are services, duties or activities with respect to 
        which an individual has recall rights pursuant to a collective 
        bargaining agreement or applicable personnel procedures.
    ``(iii) A participant in a program established under section 482 
shall not perform services or duties that have been performed by or 
were assigned to any--
            ``(I) presently employed worker if the participant is in a 
        program established under section 482(e);
            ``(II) employee who recently resigned or was discharged;
            ``(III) employee who--
                    ``(aa) is the subject of a reduction in force; or
                    ``(bb) has recall rights pursuant to a collective 
                bargaining agreement or applicable personnel 
                procedures;
            ``(IV) employee who is on leave (terminal, temporary, 
        vacation, emergency, or sick); or
            ``(V) employee who is on strike or is being locked out.
    ``(c)(1) Sections 142(a), 143(a)(4), 143(a)(5), and 143(c)(2) of 
the Job Training Partnership Act shall apply to employment provided 
through any program established under section 482 of this Act.
    ``(2) Sections 130(f) and 176(f) of the National and Community 
Service Act of 1990 shall apply to employment provided through any 
program established under section 482 of this Act.
    ``(d)(1) A participant in a program established under subsection 
(e) of section 482 may not be assigned to fill any established unfilled 
position vacancy.
    ``(2)(A) A program established under section 482 may not be used to 
assist, promote, or deter union organizing.
    ``(B) A program established under section 482 may not be used to 
impair existing contracts for services or collective bargaining 
agreements.''.

                       TITLE II--MAKING WORK PAY

SEC. 201. TRANSITIONAL MEDICAID BENEFITS.

    (a) Extension of Medicaid Enrollment for Former AFDC Recipients for 
1 Additional Year.--
            (1) In general.--Section 1925(b)(1) (42 U.S.C. 1396r-
        6(b)(1)) is amended by striking the period at the end and 
        inserting the following: ``, and that the State shall offer to 
        each such family the option of extending coverage under this 
        subsection for any of the first 2 succeeding 6-month periods, 
        in the same manner and under the same conditions as the option 
        of extending coverage under this subsection for the first 
        succeeding 6-month period.''.
            (2) Conforming amendments.--Section 1925(b) (42 U.S.C. 
        1396r-6(b)) is amended--
                    (A) in the heading, by striking ``Extension'' and 
                inserting ``Extensions'';
                    (B) in the heading of paragraph (1), by striking 
                ``Requirement'' and inserting ``In general'';
                    (C) in paragraph (2)(B)(ii)--
                            (i) in the heading, by striking ``period'' 
                        and inserting ``periods'', and
                            (ii) by striking ``in the period'' and 
                        inserting ``in each of the 6-month periods'';
                    (D) in paragraph (3)(A), by striking ``the 6-month 
                period'' and inserting ``any 6-month period'';
                    (E) in paragraph (4)(A), by striking ``the 
                extension period'' and inserting ``any extension 
                period''; and
                    (F) in paragraph (5)(D)(i), by striking ``is a 3-
                month period'' and all that follows and inserting the 
                following: ``is, with respect to a particular 6-month 
                additional extension period provided under this 
                subsection, a 3-month period beginning with the first 
                or fourth month of such extension period.''.
    (b) Imposition of Premium Permitted Only During Additional 
Extension Periods.--
            (1) In general.--Section 1925(b)(5)(A) of such Act (42 
        U.S.C. 1396r-6(b)(5)(A)) is amended by striking ``(D)(i)),'' 
        and inserting ``(D)(i)) occurring during the second or third 
        additional extension period provided under this subsection,''.
            (2) Conforming amendment.--Section 1925(b)(1) of such Act 
        (42 U.S.C. 1396r-6(b)(1)), as amended by subsection (a)(1), is 
        amended by inserting after ``same conditions'' the following: 
        ``(except as provided in paragraph (5)(A))''.
    (c) Extension of Coverage for Low-Income Children.--Section 1925(b) 
of such Act (42 U.S.C. 1396r-6(b)) is amended by adding at the end the 
following new paragraph:
            ``(6) Extension of coverage for low-income children.--
                    ``(A) In general.--Notwithstanding any other 
                provision of this title, each State plan approved under 
                this title shall provide that the State shall offer (in 
                the last month of the third additional extension period 
                provided under paragraph (1)) to each eligible low-
                income child who has received assistance pursuant to 
                this section during each of the 6-month periods 
                described in subsection (a) and paragraph (1) the 
                option of coverage under the State plan, in the same 
                manner and under the same conditions as the option of 
                extending coverage under paragraph (1) for the second 
                and third additional extension periods provided under 
such paragraph.
                    ``(B) Eligible low-income child defined.--In 
                subparagraph (A), the term `eligible low-income child' 
                means an individual who has not attained 18 years of 
                age and whose family income does not exceed 200 percent 
                of the official poverty line (as defined by the Office 
                of Management and Budget, and revised annually in 
                accordance with section 673(2) of the Omnibus Budget 
                Reconciliation Act of 1981) applicable to a family of 
                the size involved.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to calendar quarters beginning on or after October 1, 1996, 
without regard to whether or not final regulations to carry out such 
amendments have been promulgated by such date.

SEC. 202. TEMPORARY EXCLUSION OF EARNED INCOME FOR PURPOSES OF 
              DETERMINING RENT PAID FOR UNITS IN FEDERALLY ASSISTED 
              HOUSING.

    (a) In General.--Notwithstanding any other provision of law, the 
amount of rent payable by a qualified family for a qualified dwelling 
unit may not be increased because of the increased income due to the 
employment referred to in subsection (b)(2)(A) for the period that 
begins upon the commencement of such employment and ends--
            (A) 24 months thereafter, or
            (B) upon the first date after the commencement of such 
        employment that the income of the family exceeds 200 percent of 
        the official poverty line (as defined by the Office of 
        Management and Budget and revised periodically in accordance 
        with section 673(2) of the Omnibus Budget Reconciliation Act of 
        1981) applicable to a family of the size involved,
whichever occurs first.
    (b) Definitions.--For purposes of this section, the following 
definitions shall apply:
            (1) Qualified dwelling unit.--The term ``qualified dwelling 
        unit'' means a dwelling unit--
                    (A) for which assistance is provided by the 
                Secretary of Housing and Urban Development in the form 
                of any grant, contract, loan, loan guarantee, 
                cooperative agreement, rental assistance payment, 
                interest subsidy, insurance, or direct appropriation, 
                or that is located in a project for which such 
                assistance is provided; and
                    (B) for which the amount of rent paid by the 
                occupying family is limited, restricted, or determined 
                under law or regulation based on the income of the 
                family.
            (2) Qualified Family.--The term ``qualified family'' means 
        a family--
                    (A) whose income increases as a result of 
                employment of a member of the family who was previously 
                unemployed; and
                    (B) who was receiving aid to families with 
                dependent children under a State plan approved under 
                part A of title IV of the Social Security Act 
                immediately before such employment.

SEC. 203. CONTINUATION OF FOOD STAMP BENEFITS.

    (a) Amendment.--Section 5(c) of the Food Stamp Act of 1977 (7 
U.S.C. 2014(c)) is amended by adding at the end the following:
``Notwithstanding any other provision of this subsection, in the case 
of a household that receives benefits under part A of title IV of the 
Social Security Act and whose income increases because a member of such 
household obtains employment, the earned income from such employment 
shall be excluded during a 2-year period for purposes of determining 
eligibility under such standards unless the aggregate income of such 
household exceeds the poverty line by more than 200 percent.''.
    (b) Application of Amendment.--The amendment made by subsection (a) 
shall not apply with respect to certification periods beginning before 
the date of the enactment of this Act.

             TITLE III--IMPROVING CHILD SUPPORT ENFORCEMENT

Subtitle A--Eligibility and Other Matters Concerning Title IV-D Program 
                                Clients

SEC. 301. STATE OBLIGATION TO PROVIDE PATERNITY ESTABLISHMENT AND CHILD 
              SUPPORT ENFORCEMENT SERVICES.

    (a) State Law Requirements.--Section 466(a) (42 U.S.C. 666(a)) is 
amended by adding at the end the following new paragraph:
            ``(12) Use of central case registry and centralized 
        collections unit.--Procedures under which--
                    ``(A) every child support order established or 
                modified in the State on or after October 1, 1998, is 
                recorded in the central case registry established in 
                accordance with section 454A(e); and
                    ``(B) child support payments are collected through 
                the centralized collections unit established in 
                accordance with section 454B--
                            ``(i) on and after October 1, 1998, under 
                        each order subject to wage withholding under 
                        section 466(b); and
                            ``(ii) on and after October 1, 1999, under 
                        each other order required to be recorded in 
                        such central case registry under this paragraph 
                        or section 454A(e), except as provided in 
                        subparagraph (C); and
                    ``(C)(i) parties subject to a child support order 
                described in subparagraph (B)(ii) may opt out of the 
                procedure for payment of support through the 
                centralized collections unit (but not the procedure for 
                inclusion in the central case registry) by filing with 
                State agency a written agreement, signed by both 
                parties, to an alternative payment procedure; and
                    ``(ii) an agreement described in clause (i) becomes 
                void whenever either party advises the State agency of 
                an intent to vacate the agreement.''.
    (b) State Plan Requirements.--Section 454 (42 U.S.C. 654) is 
amended--
            (1) by striking paragraph (4) and inserting the following:
            ``(4) provide that such State will undertake--
                    ``(A) to provide appropriate services under this 
                part to--
                            ``(i) each child with respect to whom an 
                        assignment is effective under section 
                        402(a)(26), 471(a)(17), or 1912 (except in 
                        cases where the State agency determines, in 
                        accordance with paragraph (25), that it is 
                        against the best interests of the child to do 
                        so); and
                            ``(ii) each child not described in clause 
                        (i)--
                                    ``(I) with respect to whom an 
                                individual applies for such services; 
                                and
                                    ``(II) (on and after October 1, 
                                1998) each child with respect to whom a 
                                support order is recorded in the 
                                central State case registry established 
                                under section 454A, regardless of 
                                whether application is made for 
                                services under this part; and
                    ``(B) to enforce the support obligation established 
                with respect to the custodial parent of a child 
                described in subparagraph (A) unless the parties to the 
                order which establishes the support obligation have 
                opted, in accordance with section 466(a)(12)(C), for an 
                alternative payment procedure.''; and
            (2) in paragraph (6)--
                    (A) by striking subparagraph (A) and inserting the 
                following:
                    ``(A) services under the State plan shall be made 
                available to nonresidents on the same terms as to 
                residents;'';
                    (B) in subparagraph (B)--
                            (i) by inserting ``on individuals not 
                        receiving assistance under part A'' after 
                        ``such services shall be imposed''; and
                            (ii) by inserting ``but no fees or costs 
                        shall be imposed on any absent or custodial 
                        parent or other individual for inclusion in the 
                        central State registry maintained pursuant to 
                        section 454A(e)''; and
                    (C) in each of subparagraphs (B), (C), and (D)--
                            (i) by indenting such subparagraph and 
                        aligning its left margin with the left margin 
                        of subparagraph (A); and
                            (ii) by striking the final comma and 
                        inserting a semicolon.
    (c) Conforming Amendments.--
            (1) Section 452(g)(2)(A) (42 U.S.C. 652(g)(2)(A)) is 
        amended by striking ``454(6)'' each place it appears and 
        inserting ``454(4)(A)(ii)''.
            (2) Section 454(23) (42 U.S.C. 654(23)) is amended, 
        effective October 1, 1998, by striking ``information as to any 
        application fees for such services and''.
            (3) Section 466(a)(3)(B) (42 U.S.C. 666(a)(3)(B)) is 
        amended by striking ``in the case of overdue support which a 
        State has agreed to collect under section 454(6)'' and 
        inserting ``in any other case''.
            (4) Section 466(e) (42 U.S.C. 666(e)) is amended by 
        striking ``or (6)''.

SEC. 302. DISTRIBUTION OF PAYMENTS.

    (a) Distributions Through State Child Support Enforcement Agency to 
Former Assistance Recipients.--Section 454(5) (42 U.S.C. 654(5)) is 
amended--
            (1) in subparagraph (A)--
                    (A) by inserting ``except as otherwise specifically 
                provided in section 464 or 466(a)(3),'' after ``is 
                effective,''; and
                    (B) by striking ``except that'' and all that 
                follows through the semicolon; and
            (2) in subparagraph (B), by striking ``, except'' and all 
        that follows through ``medical assistance''.
    (b) Distribution to a Family Currently Receiving AFDC.--Section 457 
(42 U.S.C. 657) is amended--
            (1) by striking subsection (a) and redesignating subsection 
        (b) as subsection (a);
            (2) in subsection (a), as redesignated--
                    (A) in the matter preceding paragraph (2), to read 
                as follows:
    ``(a) In the Case of a Family Receiving AFDC.--Amounts collected 
under this part during any month as support of a child who is receiving 
assistance under part A (or a parent or caretaker relative of such a 
child) shall (except in the case of a State exercising the option under 
subsection (b)) be distributed as follows:
            ``(1) an amount equal to the amount that will be 
        disregarded pursuant to section 402(a)(8)(A)(vi) shall be taken 
        from each of--
                    ``(A) amounts received in a month which represent 
                payments for that month; and
                    ``(B) amounts received in a month which represent 
                payments for a prior month which were made by the 
                absent parent in the month when due;
        and shall be paid to the family without affecting its 
        eligibility for assistance or decreasing any amount otherwise 
        payable as assistance to such family during such month;'';
                    (B) in paragraph (4), by striking ``or (B)'' and 
                all that follows and inserting ``; then (B) from any 
                remainder, amounts equal to arrearages of such support 
                obligations assigned, pursuant to part A, to any other 
                State or States shall be paid to such other State or 
                States and used to any such arrearages (with 
                appropriate reimbursement of the Federal Government to 
                the extent of its participation in the financing); and 
                then (C) any remainder shall be paid to the family.''.
            (3) by inserting after subsection (a), as redesignated, the 
        following new subsection:
    ``(b) Alternative Distribution in Case of Family Receiving AFDC.--
In the case of a State electing the option under this subsection, 
amounts collected as described in subsection (a) shall be distributed 
as follows:
            ``(1) an amount equal to the amount that will be 
        disregarded pursuant to section 402(a)(8)(A)(vi) shall be taken 
        from each of--
                    ``(A) amounts received in a month which represent 
                payments for that month; and
                    ``(B) amounts received in a month which represent 
                payments for a prior month which were made by the 
                absent parent in the month when due;
        and shall be paid to the family without affecting its 
        eligibility for assistance or decreasing any amount otherwise 
        payable as assistance to such family during such month;
            ``(2) second, from any remainder, amounts equal to the 
        balance of support owed for the current month shall be paid to 
        the family;
            ``(3) third, from any remainder, amounts equal to 
        arrearages of such support obligations assigned, pursuant to 
        part A, to the State making the collection shall be retained 
        and used by such State to pay any such arrearages (with 
        appropriate reimbursement of the Federal Government to the 
        extent of its participation in the financing);
            ``(4) fourth, from any remainder, amounts equal to 
        arrearages of such support obligations assigned, pursuant to 
        part A, to any other State or States shall be paid to such 
        other State or States and used to pay any such arrearages (with 
        appropriate reimbursement of the Federal Government to the 
        extent of its participation in the financing); and
            ``(5) fifth, any remainder shall be paid to the family.''.
    (c) Distribution to a Family Not Receiving AFDC.--
            (1) In general.--Section 457(c) (42 U.S.C. 657(c)) is 
        amended to read as follows:
    ``(c) In Case of Family Not Receiving AFDC.--Amounts collected by a 
State agency under this part during any month as support of a child who 
is not receiving assistance under part A (or of a parent or caretaker 
relative of such a child) shall (subject to the remaining provisions of 
this section) be distributed as follows:
            ``(1) first, amounts equal to the total of such support 
        owed for such month shall be paid to the family;
            ``(2) second, from any remainder, amounts equal to 
        arrearages of such support obligations for months during which 
        such child did not receive assistance under part A shall be 
        paid to the family;
            ``(3) third, from any remainder, amounts equal to 
        arrearages of such support obligations assigned to the State 
        making the collection pursuant to part A shall be retained and 
        used by such State to pay any such arrearages (with appropriate 
        reimbursement of the Federal Government to the extent of its 
        participation in the financing);
            ``(4) fourth, from any remainder, amounts equal to 
        arrearages of such support obligations assigned to any other 
        State pursuant to part A shall be paid to such other State or 
        States, and used to pay such arrearages, in the order in which 
        such arrearages accrued (with appropriate reimbursement of the 
        Federal Government to the extent of its participation in the 
        financing).''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall take effect on October 1, 1999.
    (d) Distribution to a Child Receiving Assistance Under Title IV-
E.--Section 457(d) (42 U.S.C. 657(d)) is amended, in the matter 
preceding paragraph (1), by striking ``Notwithstanding the preceding 
provisions of this section, amounts'' and inserting the following:
    ``(d) In Case of a Child Receiving Assistance Under Title IV-E.--
Amounts''.
    (e) Regulations.--The Secretary of Health and Human Services shall 
promulgate regulations--
            (1) under part D of title IV of the Social Security Act, 
        establishing a uniform nationwide standard for allocation of 
        child support collections from an obligor owing support to more 
        than one family; and
            (2) under part A of such title, establishing standards 
        applicable to States electing the alternative formula under 
        section 457(b) of such Act for distribution of collections on 
        behalf of families receiving Aid to Families with Dependent 
        Children, designed to minimize irregular monthly payments to 
        such families.
    (f) Clerical Amendment.--Section 454 (42 U.S.C. 654) is amended--
            (1) in paragraph (11), by striking ``(11)'' and inserting 
        ``(11)(A)''; and
            (2) by redesignating paragraph (12) as subparagraph (B) of 
        paragraph (11).
    (g) Mandatory Child Support Pass-Through.--
            (1) In general.--Section 402(a)(8)(A)(vi) (42 U.S.C. 
        602(a)(8)(A)(vi)) is amended--
                    (A) by striking ``$50'' each place such term 
                appears and inserting ``$50, or, if greater, $50 
                adjusted by the CPI (as prescribed in section 
                406(i));''; and
                    (B) by striking the semicolon at the end and 
                inserting ``or, in lieu of each dollar amount specified 
                in this clause, such greater amount as the State may 
                choose (and provide for in its State plan);''.
            (2) CPI adjustment.--Section 406 (42 U.S.C. 606) is amended 
        by adding at the end the following:
    ``(i) For purposes of this part, an amount is `adjusted by the CPI' 
for any month in a calendar year by multiplying the amount involved by 
the ratio of--
            ``(1) the Consumer Price Index (as prepared by the 
        Department of Labor) for the third quarter of the preceding 
        calendar year, to
            ``(2) such Consumer Price Index for the third quarter of 
        calendar year 1996,
and rounding the product, if not a multiple of $10, to the nearer 
multiple of $10.''.

SEC. 303. DUE PROCESS RIGHTS.

    (a) In General.--Section 454 (42 U.S.C. 654), as amended by section 
102(f) of this Act, is amended by inserting after paragraph (11) the 
following new paragraph:
            ``(12) provide for procedures to ensure that--
                    ``(A) individuals who are applying for or receiving 
                services under this part, or are parties to cases in 
                which services are being provided under this part--
                            ``(i) receive notice of all proceedings in 
                        which support obligations might be established 
                        or modified; and
                            ``(ii) receive a copy of any order 
                        establishing or modifying a child support 
                        obligation, or (in the case of a petition for 
                        modification) a notice of determination that 
                        there should be no change in the amount of the 
                        child support award, within 14 days after 
                        issuance of such order or determination;
                    ``(B) individuals applying for or receiving 
                services under this part have access to a fair hearing 
                that meets standards established by the Secretary and 
                ensures prompt consideration and resolution of 
                complaints (but the resort to such procedure shall not 
                stay the enforcement of any support order); and
                    ``(C)(i) individuals adversely affected by the 
                establishment or modification of (or, in the case of a 
                petition for modification, the determination that there 
                should be no change in) a child support order shall be 
                afforded not less than 30 days after the receipt of the 
                order or determination to initiate proceedings to 
                challenge such order or determination; and
                    ``(ii) the State may not provide to any 
                noncustodial parent of a child representation relating 
                to the establishment or modification of an order for 
                the payment of child support with respect to that 
                child, unless the State makes provision for such 
                representation outside the State agency;''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
become effective on October 1, 1997.

SEC. 304. PRIVACY SAFEGUARDS.

    (a) State Plan Requirement.--Section 454 (42 U.S.C. 454) is 
amended--
            (1) by striking ``and'' at the end of paragraph (23);
            (2) by striking the period at the end of paragraph (24) and 
        inserting ``; and''; and
            (3) by adding after paragraph (24) the following:
            ``(25) will have in effect safeguards applicable to all 
        sensitive and confidential information handled by the State 
        agency designed to protect the privacy rights of the parties, 
        including--
                    ``(A) safeguards against unauthorized use or 
                disclosure of information relating to proceedings or 
                actions to establish paternity, or to establish or 
                enforce support;
                    ``(B) prohibitions on the release of information on 
                the whereabouts of one party to another party against 
                whom a protective order with respect to the former 
                party has been entered; and
                    ``(C) prohibitions on the release of information on 
                the whereabouts of one party to another party if the 
                State has reason to believe that the release of the 
                information may result in physical or emotional harm to 
                the former party.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
become effective on October 1, 1997.

             Subtitle B--Program Administration and Funding

SEC. 311. FEDERAL MATCHING PAYMENTS.

    (a) Increased Base Matching Rate.--Section 455(a)(2) (42 U.S.C. 
655(a)(2)) is amended to read as follows:
            ``(2) The applicable percent for a quarter for purposes of 
        paragraph (1)(A) is--
                    ``(A) for fiscal year 1997, 69 percent,
                    ``(B) for fiscal year 1998, 72 percent, and
                    ``(C) for fiscal year 1999 and succeeding fiscal 
                years, 75 percent.''.
    (b) Maintenance of Effort.--Section 455 (42 U.S.C. 655) is 
amended--
            (1) in subsection (a)(1), in the matter preceding 
        subparagraph (A), by striking ``From'' and inserting ``Subject 
        to subsection (c), from''; and
            (2) by inserting after subsection (b) the following new 
        subsection:
    ``(c) Maintenance of Effort.--Notwithstanding the provisions of 
subsection (a), total expenditures for the State program under this 
part for fiscal year 1997 and each succeeding fiscal year, reduced by 
the percentage specified for such fiscal year under subsection (a)(2) 
(A), (B), or (C)(i), shall not be less than such total expenditures for 
fiscal year 1996, reduced by 66 percent.''.

SEC. 312. PERFORMANCE-BASED INCENTIVES AND PENALTIES.

    (a) Incentive Adjustments to Federal Matching Rate.--Section 458 
(42 U.S.C. 658) is amended to read as follows:

                ``incentive adjustments to matching rate

    ``Sec. 458. (a) Incentive Adjustment.--
            ``(1) In general.--In order to encourage and reward State 
        child support enforcement programs which perform in an 
        effective manner, the Federal matching rate for payments to a 
        State under section 455(a)(1)(A), for each fiscal year 
        beginning on or after October 1, 1998, shall be increased by a 
        factor reflecting the sum of the applicable incentive 
        adjustments (if any) determined in accordance with regulations 
        under this section with respect to Statewide paternity 
        establishment and to overall performance in child support 
        enforcement.
            ``(2) Standards.--
                    ``(A) In general.--The Secretary shall specify in 
                regulations--
                            ``(i) the levels of accomplishment, and 
                        rates of improvement as alternatives to such 
                        levels, which States must attain to qualify for 
                        incentive adjustments under this section; and
                            ``(ii) the amounts of incentive adjustment 
                        that shall be awarded to States achieving 
                        specified accomplishment or improvement levels, 
                        which amounts shall be graduated, ranging up 
                        to--
                                    ``(I) 5 percentage points, in 
                                connection with Statewide paternity 
                                establishment; and
                                    ``(II) 10 percentage points, in 
                                connection with overall performance in 
                                child support enforcement.
                    ``(B) Limitation.--In setting performance standards 
                pursuant to subparagraph (A)(i) and adjustment amounts 
                pursuant to subparagraph (A)(ii), the Secretary shall 
                ensure that the aggregate number of percentage point 
                increases as incentive adjustments to all States do not 
                exceed such aggregate increases as assumed by the 
                Secretary in estimates of the cost of this section as 
                of June 1995, unless the aggregate performance of all 
                States exceeds the projected aggregate performance of 
                all States in such cost estimates.
            ``(3) Determination of incentive adjustment.--The Secretary 
        shall determine the amount (if any) of incentive adjustment due 
        each State on the basis of the data submitted by the State 
        pursuant to section 454(15)(B) concerning the levels of 
accomplishment (and rates of improvement) with respect to performance 
indicators specified by the Secretary pursuant to this section.
            ``(4) Fiscal year subject to incentive adjustment.--The 
        total percentage point increase determined pursuant to this 
        section with respect to a State program in a fiscal year shall 
        apply as an adjustment to the applicable percent under section 
        455(a)(2) for payments to such State for the succeeding fiscal 
        year.
            ``(5) Recycling of incentive adjustment.--A State shall 
        expend in the State program under this part all funds paid to 
        the State by the Federal Government as a result of an incentive 
        adjustment under this section.
    ``(b) Meaning of Terms.--For purposes of this section--
            ``(1) the term `Statewide paternity establishment 
        percentage' means, with respect to a fiscal year, the ratio 
        (expressed as a percentage) of--
                    ``(A) the total number of out-of-wedlock children 
                in the State under one year of age for whom paternity 
                is established or acknowledged during the fiscal year, 
                to
                    ``(B) the total number of children born out of 
                wedlock in the State during such fiscal year; and
            ``(2) the term `overall performance in child support 
        enforcement' means a measure or measures of the effectiveness 
        of the State agency in a fiscal year which takes into account 
        factors including--
                    ``(A) the percentage of cases requiring a child 
                support order in which such an order was established;
                    ``(B) the percentage of cases in which child 
                support is being paid;
                    ``(C) the ratio of child support collected to child 
                support due; and
                    ``(D) the cost-effectiveness of the State program, 
                as determined in accordance with standards established 
                by the Secretary in regulations.''.
    (b) Adjustment of Payments Under Part D of Title IV.--Section 
455(a)(2) (42 U.S.C. 655(a)(2)), as amended by section 111(a) of this 
Act, is amended--
            (1) by striking the period at the end of subparagraph 
        (C)(ii) and inserting a comma; and
            (2) by adding after and below subparagraph (C), flush with 
        the left margin of the subsection, the following:
``increased by the incentive adjustment factor (if any) determined by 
the Secretary pursuant to section 458.''.
    (c) Conforming Amendments.--Section 454(22) (42 U.S.C. 654(22)) is 
amended--
            (1) by striking ``incentive payments'' the first place it 
        appears and inserting ``incentive adjustments''; and
            (2) by striking ``any such incentive payments made to the 
        State for such period'' and inserting ``any increases in 
        Federal payments to the State resulting from such incentive 
        adjustments''.
    (d) Calculation of IV-D Paternity Establishment Percentage.--(1) 
Section 452(g)(1) (42 U.S.C. 652(g)(1)) is amended in the matter 
preceding subparagraph (A) by inserting ``its overall performance in 
child support enforcement is satisfactory (as defined in section 458(b) 
and regulations of the Secretary), and'' after ``1994,''.
    (2) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is amended--
            (A) in subparagraph (A), in the matter preceding clause 
        (i)--
                    (i) by striking ``paternity establishment 
                percentage'' and inserting ``IV-D paternity 
                establishment percentage''; and
                    (ii) by striking ``(or all States, as the case may 
                be)'';
            (B) in subparagraph (A)(i), by striking ``during the fiscal 
        year'';
            (C) in subparagraph (A)(ii)(I), by striking ``as of the end 
        of the fiscal year'' and inserting ``in the fiscal year or, at 
        the option of the State, as of the end of such year'';
            (D) in subparagraph (A)(ii)(II), by striking ``or (E) as of 
        the end of the fiscal year'' and inserting ``in the fiscal year 
        or, at the option of the State, as of the end of such year'';
            (E) in subparagraph (A)(iii)--
                    (i) by striking ``during the fiscal year''; and
                    (ii) by striking ``and'' at the end; and
            (F) in the matter following subparagraph (A)--
                    (i) by striking ``who were born out of wedlock 
                during the immediately preceding fiscal year'' and 
                inserting ``born out of wedlock'';
                    (ii) by striking ``such preceding fiscal year'' 
                both places it appears and inserting ``the preceding 
                fiscal year''; and
                    (iii) by striking ``or (E)'' the second place it 
                appears.
    (3) Section 452(g)(3) (42 U.S.C. 652(g)(3)) is amended--
            (A) by striking subparagraph (A) and redesignating 
        subparagraphs (B) and (C) as subparagraphs (A) and (B), 
        respectively;
            (B) in subparagraph (A), as redesignated, by striking ``the 
        percentage of children born out-of-wedlock in the State'' and 
        inserting ``the percentage of children in the State who are 
        born out of wedlock or for whom support has not been 
        established''; and
            (C) in subparagraph (B), as redesignated--
                    (i) by inserting ``and overall performance in child 
                support enforcement'' after ``paternity establishment 
                percentages''; and
                    (ii) by inserting ``and securing support'' before 
                the period.
    (e) Reduction of Payments Under Part D of Title IV.--
            (1) New requirements.--Section 455 (42 U.S.C. 655) is 
        amended by inserting after subsection (b) the following:
    ``(c)(1) If the Secretary finds, with respect to a State program 
under this part in a fiscal year beginning on or after October 1, 
1997--
            ``(A)(i) on the basis of data submitted by a State pursuant 
        to section 454(15)(B), that the State program in such fiscal 
        year failed to achieve the IV-D paternity establishment 
        percentage (as defined in section 452(g)(2)(A)) or the 
        appropriate level of overall performance in child support 
        enforcement (as defined in section 458(b)(2)), or to meet other 
        performance measures that may be established by the Secretary, 
        or
            ``(ii) on the basis of an audit or audits of such State 
        data conducted pursuant to section 452(a)(4)(C), that the State 
        data submitted pursuant to section 454(15)(B) is incomplete or 
        unreliable; and
            ``(B) that, with respect to the succeeding fiscal year--
                    ``(i) the State failed to take sufficient 
                corrective action to achieve the appropriate 
                performance levels as described in subparagraph (A)(i) 
                of the paragraph, or
                    ``(ii) the data submitted by the State pursuant to 
                section 454(15)(B) is incomplete or unreliable,
the amounts otherwise payable to the State under this part for quarters 
following the end of such succeeding fiscal year, prior to quarters 
following the end of the first quarter throughout which the State 
program is in compliance with such performance requirement, shall be 
reduced by the percentage specified in paragraph (2).
    ``(2) The reductions required under paragraph (1) shall be--
            ``(A) not less than 6 nor more than 8 percent, or
            ``(B) not less than 8 nor more than 12 percent, if the 
        finding is the second consecutive finding made pursuant to 
        paragraph (1), or
            ``(C) not less than 12 nor more than 15 percent, if the 
        finding is the third or a subsequent consecutive such finding.
    ``(3) For purposes of this subsection, section 402(a)(27), and 
section 452(a)(4), a State which is determined as a result of an audit 
to have submitted incomplete or unreliable data pursuant to section 
454(15)(B), shall be determined to have submitted adequate data if the 
Secretary determines that the extent of the incompleteness or 
unreliability of the data is of a technical nature which does not 
adversely affect the determination of the level of the State's 
performance.''.
            (2) Conforming amendments.--
                    (A) Section 403 (42 U.S.C. 603) is amended by 
                striking subsection (h).
                    (B) Section 452(a)(4) (42 U.S.C. 652(a)(4)) is 
                amended by striking ``403(h)'' each place such term 
                appears and inserting ``455(c)''.
                    (C) Subsections (d)(3)(A), (g)(1), and (g)(3)(A) of 
                section 452 (42 U.S.C. 652) are each amended by 
                striking ``403(h)'' and inserting ``455(c)''.
    (f) Effective Dates.--
            (1) Incentive adjustments.--
                    (A) The amendments made by subsections (a), (b), 
                and (c) shall become effective October 1, 1997, except 
                to the extent provided in subparagraph (B).
                    (B) Section 458 of the Social Security Act, as in 
                effect prior to the enactment of this section, shall be 
                effective for purposes of incentive payments to States 
                for fiscal years prior to fiscal year 1999.
            (2) Penalty reductions.--
                    (A) The amendments made by subsection (d) shall 
                become effective with respect to calendar quarters 
                beginning on and after the date of enactment of this 
                Act.
                    (B) The amendments made by subsection (e) shall 
                become effective with respect to calendar quarters 
                beginning on and after the date one year after the date 
                of enactment of this Act.

SEC. 313. FEDERAL AND STATE REVIEWS AND AUDITS.

    (a) State Agency Activities.--Section 454 (42 U.S.C. 654) is 
amended--
            (1) in paragraph (14), by striking ``(14)'' and insert 
        ``(14)(A)'';
            (2) by redesignating paragraph (15) as subparagraph (B) of 
        paragraph (14); and
            (3) by inserting after paragraph (14) the following new 
        paragraph:
            ``(15) provide for--
                    ``(A) a process for annual reviews of and reports 
                to the Secretary on the State program under this part, 
                which shall include such information as may be 
                necessary to measure State compliance with Federal 
                requirements for expedited procedures and timely case 
                processing, using such standards and procedures as are 
                required by the Secretary, under which the State agency 
                will determine the extent to which such program is in 
                conformity with applicable requirements with respect to 
                the operation of State programs under this part 
                (including the status of complaints filed under the 
                procedure required under paragraph (12)(B)); and
                    ``(B) a process of extracting from the State 
                automated data processing system and transmitting to 
                the Secretary data and calculations concerning the 
                levels of accomplishment (and rates of improvement) 
                with respect to applicable performance indicators 
                (including IV-D paternity establishment percentages and 
                overall performance in child support enforcement) to 
                the extent necessary for purposes of sections 452(g) 
                and 458.''.
    (b) Federal Activities.--Section 452(a)(4) (42 U.S.C. 652(a)(4)) is 
amended to read as follows:
            ``(4)(A) review data and calculations transmitted by State 
        agencies pursuant to section 454(15)(B) on State program 
        accomplishments with respect to performance indicators for 
        purposes of section 452(g) and 458, and determine the amount 
        (if any) of penalty reductions pursuant to section 455(c) to be 
        applied to the State;
            ``(B) review annual reports by State agencies pursuant to 
        section 454(15)(A) on State program conformity with Federal 
        requirements; evaluate any elements of a State program in which 
        significant deficiencies are indicated by such report on the 
        status of complaints under the State procedure under section 
        454(12)(B); and, as appropriate, provide to the State agency 
        comments, recommendations for additional or alternative 
        corrective actions, and technical assistance; and
            ``(C) conduct audits, in accordance with the government 
        auditing standards of the United States Comptroller General--
                    ``(i) at least once every 3 years (or more 
                frequently, in the case of a State which fails to meet 
                requirements of this part, or of regulations 
                implementing such requirements, concerning performance 
                standards and reliability of program data) to assess 
                the completeness, reliability, and security of the 
                data, and the accuracy of the reporting systems, used 
                for the calculations of performance indicators 
                specified in subsection (g) and section 458;
                    ``(ii) of the adequacy of financial management of 
                the State program, including assessments of--
                            ``(I) whether Federal and other funds made 
                        available to carry out the State program under 
                        this part are being appropriately expended, and 
                        are properly and fully accounted for; and
                            ``(II) whether collections and 
                        disbursements of support payments and program 
                        income are carried out correctly and are 
                        properly and fully accounted for; and
                    ``(iii) for such other purposes as the Secretary 
                may find necessary;''.
    (c) Effective Date.--The amendments made by this section shall be 
effective with respect to calendar quarters beginning on or after the 
date one year after enactment of this section.

SEC. 314. REQUIRED REPORTING PROCEDURES.

    (a) Establishment.--Section 452(a)(5) (42 U.S.C. 652(a)(5)) is 
amended by inserting ``, and establish procedures to be followed by 
States for collecting and reporting information required to be provided 
under this part, and establish uniform definitions (including those 
necessary to enable the measurement of State compliance with the 
requirements of this part relating to expedited processes and timely 
case processing) to be applied in following such procedures'' before 
the semicolon.
    (b) State Plan Requirement.--Section 454 (42 U.S.C. 654), as 
amended by section 104(a) of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (24);
            (2) by striking the period at the end of paragraph (25) and 
        inserting ``; and''; and
            (3) by adding after paragraph (25) the following:
            ``(26) provide that the State shall use the definitions 
        established under section 452(a)(5) in collecting and reporting 
        information as required under this part.''.

SEC. 315. AUTOMATED DATA PROCESSING REQUIREMENTS.

    (a) Revised Requirements.--
            (1) Section 454(16) (42 U.S.C. 654(16)) is amended--
                    (A) by striking ``, at the option of the State,'';
                    (B) by inserting ``and operation by the State 
                agency'' after ``for the establishment'';
                    (C) by inserting ``meeting the requirements of 
                section 454A'' after ``information retrieval system'';
                    (D) by striking ``in the State and localities 
                thereof, so as (A)'' and inserting ``so as'';
                    (E) by striking ``(i)''; and
                    (F) by striking ``(including'' and all that follows 
                and inserting a semicolon.
            (2) Part D of title IV (42 U.S.C. 651-669) is amended by 
        inserting after section 454 the following new section:

                      ``automated data processing

    ``Sec. 454A. (a) In General.--In order to meet the requirements of 
this section, for purposes of the requirement of section 454(16), a 
State agency shall have in operation a single statewide automated data 
processing and information retrieval system which has the capability to 
perform the tasks specified in this section, and perform such tasks 
with the frequency and in the manner specified in this part or in 
regulations or guidelines of the Secretary.
    ``(b) Program Management.--The automated system required under this 
section shall perform such functions as the Secretary may specify 
relating to management of the program under this part, including--
            ``(1) controlling and accounting for use of Federal, State, 
        and local funds to carry out such program; and
            ``(2) maintaining the data necessary to meet Federal 
        reporting requirements on a timely basis.
    ``(c) Calculation of Performance Indicators.--In order to enable 
the Secretary to determine the incentive and penalty adjustments 
required by sections 452(g) and 458, the State agency shall--
            ``(1) use the automated system--
                    ``(A) to maintain the requisite data on State 
                performance with report to paternity establishment and 
                child support enforcement in the State; and
                    ``(B) to calculate the IV-D paternity establishment 
                percentage and overall performance in child support 
                enforcement for the State for each fiscal year; and
            ``(2) have in place systems controls to ensure the 
        completeness, and reliability of, and ready access to, the data 
        described in paragraph (1)(A), and the accuracy of the 
        calculations described in paragraph (1)(B).
    ``(d) Information Integrity and Security.--The State agency shall 
have in effect safeguards on the integrity, accuracy, and completeness 
of, access to, and use of data in the automated system required under 
this section, which shall include the following (in addition to such 
other safeguards as the Secretary specifies in regulations):
            ``(1) Policies restricting access.--Written policies 
        concerning access to data by State agency personnel, and 
        sharing of data with other persons, which--
                    ``(A) permit access to and use of data only to the 
                extent necessary to carry out program responsibilities;
                    ``(B) specify the data which may be used for 
                particular program purposes, and the personnel 
                permitted access to such data; and
                    ``(C) ensure that data obtained or disclosed for a 
                limited program purpose is not used or redisclosed for 
                another, impermissible purpose.
            ``(2) Systems controls.--Systems controls (such as 
        passwords or blocking of fields) to ensure strict adherence to 
        the policies specified under paragraph (1).
            ``(3) Montioring of access.--Routine monitoring of access 
        to and use of the automated system, through methods such as 
        audit trails and feedback mechanism, to guard against and 
        promptly identify unauthorized access or use.
            ``(4) Training and information.--The State agency shall 
        have in effect procedures to ensure that all personnel 
        (including State and local agency staff and contractors) who 
        may have access to or be required to use sensitive or 
        confidential program data are fully informed of applicable 
        requirements and penalties, and are adequately trained in 
        security procedures.
            ``(5) Penalties.--The State agency shall have in effect 
        administrative penalties (up to and including dismissal from 
        employment) for unauthorized access to, or disclosure or use 
        of, confidential data.''.
            (3) Regulations.--Section 452 (42 U.S.C. 652) is amended by 
        adding at the end the following:
    ``(j) The Secretary shall prescribe final regulations for 
implementation of the requirements of section 454A not later than 2 
years after the date of enactment of this subsection.''.
            (4) Implementation timetable.--Section 454(24) (42 U.S.C. 
        654(24)), as amended by sections 304(a)(2) and 314(b)(1) of 
        this Act, is amended to read as follows:
            ``(24) provide that the State will have in effect an 
        automated data processing and information retrieval system--
                    ``(A) by October 1, 1995, meeting all requirements 
                of this part which were enacted on or before the date 
                of enactment of the Family Support Act of 1988; and
                    ``(B) by October 1, 1999, meeting all requirements 
                of this part enacted on or before the date of enactment 
                of this Act.
        (but this provision shall not be construed to alter earlier 
        deadlines specified for elements of such system), except that 
        such deadline shall be extended by 1 day for each day (if any) 
        by which the Secretary fails to meet the deadline imposed by 
        section 452(j);''.
    (b) Special Federal Matching Rate for Development Costs of 
Automated Systems.--Section 455(a) (42 U.S.C. 655(a)) is amended--
            (1) in paragraph (1)(B)--
                    (A) by striking ``90 percent'' and inserting ``the 
                percent specified in paragraph (3)'';
                    (B) by striking ``so much of''; and
                    (C) by striking ``which the Secretary'' and all 
                that follows and inserting ``, and''; and
            (2) by adding at the end the following new paragraph:
    ``(3)(A) The Secretary shall pay to each State, for each quarter in 
fiscal year 1996, 90 percent of so much of State expenditures described 
in subparagraph (1)(B) as the Secretary finds are for a system meeting 
the requirements specified in section 454(16), or meeting such 
requirements without regard to clause (D) thereof.
    ``(B)(i) The Secretary shall pay to each State, for each quarter in 
fiscal years 1997 through 2001, the percentage specified in clause (ii) 
of so much of State expenditures described in subparagraph (1)(B) as 
the Secretary finds are for a system meeting the requirements specified 
in section 454(16) and 454A, subject to clause (iii).
    ``(ii) The percentage specified in this clause, for purposes of 
clause (i), is the higher of--
            ``(I) 80 percent, or
            ``(II) the percentage otherwise applicable to Federal 
        payments to the State under subparagraph (A) (as adjusted 
        pursuant to section 458).''.
    (c) Conforming Amendment.--Section 123(c) of the Family Support Act 
of 1988 (102 Stat. 2352; Public Law 100-485) is repealed.
    (d) Additional Provisions.--For additional provisions of section 
454A, as added by subsection (a) of this section, see the amendments 
made by sections 21, 322(c), and 333(d) of this Act.

SEC. 316. DIRECTOR OF CSE PROGRAM; STAFFING STUDY.

    (a) Reporting to Secretary.--Section 452(a) (42 U.S.C. 652(a)) is 
amended in the matter preceding paragraph (1) by striking ``directly''.
    (b) Staffing Studies.--
            (1) Scope.--The Secretary of Health and Human Services 
        shall, directly or by contract, conduct studies of the staffing 
        of each State child support enforcement program under part D of 
        title IV of the Social Security Act. Such studies shall include 
        a review of the staffing needs created by requirements for 
        automated data processing, maintenance of a central case 
        registry and centralized collections of child support, and of 
        changes in these needs resulting from changes in such 
        requirements. Such studies shall examine and report on 
        effective staffing practices used by the States and on 
        recommended staffing procedures.
            (2) Frequency of studies.--The Secretary shall complete the 
        first staffing study required under paragraph (1) by October 1, 
        1997, and may conduct additional studies subsequently at 
        appropriate intervals.
            (3) Report to the congress.--The Secretary shall submit a 
        report to the Congress stating the findings and conclusions of 
        each study conducted under this subsection.

SEC. 317. FUNDING FOR SECRETARIAL ASSISTANCE TO STATE PROGRAMS.

    Section 452 (42 U.S.C. 652), as amended by section 115(a)(3) of 
this Act, is amended by adding at the end the following new subsection:
    ``(k) Funding for Federal Activities Assisting State Programs.--(1) 
There shall be available to the Secretary, from amounts appropriated 
for fiscal year 1996 and each succeeding fiscal year for payments to 
States under this part, the amount specified in paragraph (2) for the 
costs to the Secretary for--
            ``(A) information dissemination and technical assistance to 
        States, training of State and Federal staff, staffing studies, 
        and related activities needed to improve programs (including 
        technical assistance concerning State automated systems);
            ``(B) research, demonstration, and special projects of 
        regional or national significance relating to the operation of 
        State programs under this part; and
            ``(C) operation of the Federal Parent Locator Service under 
        section 453, to the extent such costs are not recovered through 
        user fees.
    ``(2) The amount specified in the paragraph for a fiscal year is 
the amount equal to a percentage of the reduction in Federal payments 
to States under part A on account of child support (including 
arrearages) collected in the preceding fiscal year on behalf of 
children receiving aid under such part A in such preceding fiscal year 
(as determined on the basis of the most recent reliable data available 
to the Secretary as of the end of the third calendar quarter following 
the end of such preceding fiscal year), equal to--
            ``(A) 1 percent, for the activities specified in 
        subparagraphs (A) and (B) of paragraph (1); and
            ``(B) 2 percent, for the activities specified in 
        subparagraph (C) of paragraph (1).''.

SEC. 318. REPORTS AND DATA COLLECTION BY THE SECRETARY.

    (a) Annual Report to Congress.--(1) Section 452(a)(10)(A) (42 
U.S.C. 652(a)(10)(A)) is amended--
            (A) by striking ``this part;'' and inserting ``this part, 
        including--''; and
            (B) by adding at the end the following indented clauses:
                            ``(i) the total amount of child support 
                        payments collected as a result of services 
                        furnished during such fiscal year to 
                        individuals receiving services under this part;
                            ``(ii) the cost to the States and to the 
                        Federal Government of furnishing such services 
                        to those individuals; and
                            ``(iii) the number of cases involving 
                        families--
                                    ``(I) who became ineligible for aid 
                                under part A during a month in such 
                                fiscal year; and
                                    ``(II) with respect to whom a child 
                                support payment was received in the 
                                same month;''.
    (2) Section 452(a)(10)(C) (42 U.S.C. 652(a)(10)(C)) is amended--
            (A) in the matter preceding clause (i)--
                    (i) by striking ``with the data required under each 
                clause being separately stated for cases'' and 
                inserting ``separately stated for (1) cases'';
                    (ii) by striking ``cases where the child was 
                formerly receiving'' and inserting ``or formerly 
                received'';
                    (iii) by inserting ``or 1912'' after 
                ``471(a)(17)''; and
                    (iv) by inserting ``(2)'' before ``all other'';
            (B) in each of clauses (i) and (ii), by striking ``, and 
        the total amount of such obligations'';
            (C) in clause (iii), by striking ``described in'' and all 
        that follows and inserting ``in which support was collected 
        during the fiscal year;'';
            (D) by striking clause (iv); and
            (E) by redesignating clause (v) as clause (vii), and 
        inserting after clause (iii) the following new clauses:
                            ``(iv) the total amount of support 
                        collected during such fiscal year and 
                        distributed as current support;
                            ``(v) the total amount of support collected 
                        during such fiscal year and distributed as 
                        arrearages;
                            ``(vi) the total amount of support due and 
                        unpaid for all fiscal years; and''.
    (3) Section 452(a)(10)(G) (42 U.S.C. 652(a)(10)(G)) is amended by 
striking ``on the use of Federal courts and''.
    (4) Section 452(a)(10) (42 U.S.C. 652(a)(10)) is amended by 
striking all that follows subparagraph (I).
    (b) Data Collection and Reporting.--Section 469 (42 U.S.C. 669) is 
amended--
            (1) by striking subsections (a) and (b) and inserting the 
        following:
    ```(a) The Secretary shall collect and maintain, on a fiscal year 
basis, up-to-date statistics, by State, with respect to services to 
establish paternity and services to establish child support 
obligations, the data specified in subsection (b), separately stated, 
in the case of each such service, with respect to--
            ``(1) families (or dependent children) receiving aid under 
        plans approved under part A (or E); and
            ``(2) families not receiving such aid.
    ``(b) The data referred to in subsection (a) are--
            ``(1) the number of cases in the caseload of the State 
        agency administering the plan under this part in which such 
        service is needed; and
            ``(2) the number of such cases in which the service has 
        been provided.''; and
            (2) in subsection (c), by striking ``(a)(2)'' and inserting 
        ``(b)(2)''.
    (c) Effective Date.--The amendments made by this section shall be 
effective with respect to fiscal year 1996 and succeeding fiscal years.

                  Subtitle C--Locate and Case Tracking

SEC. 321. CENTRAL STATE AND CASE REGISTRY.

    Section 454A, as added by section 315(a)(2) of this Act, is amended 
by adding at the end the following:
    ``(e) Central Case Registry.--
            ``(1) In general.--The automated system required under this 
        section shall perform the functions, in accordance with the 
        provisions of this subsection, of a single central registry 
        containing records with respect to each case in which services 
        are being provided by the State agency (including, on and after 
        October 1, 1998, each order specified in section 466(a)(12)), 
        using such standardized data elements (such as names, social 
        security numbers or other uniform identification numbers, dates 
        of birth, and case identification numbers), and containing such 
        other information (such as information on case status) as the 
        Secretary may require.
            ``(2) Payment records.--Each case record in the central 
        registry shall include a record of--
                    ``(A) the amount of monthly (or other periodic) 
                support owed under the support order, and other amounts 
                due or overdue (including arrears, interest or late 
                payment penalties, and fees);
                    ``(B) the date on which or circumstances under 
                which the support obligation will terminate under such 
                order;
                    ``(C) all child support and related amounts 
                collected (including such amounts as fees, late payment 
                penalties, and interest on arrearages);
                    ``(D) the distribution of such amounts collected; 
                and
                    ``(E) the birth date of the child for whom the 
                child support order is entered.
            ``(3) Updating and monitoring.--The State agency shall 
        promptly establish and maintain, and regularly monitor, case 
        records in the registry required by this subsection, on the 
        basis of--
                    ``(A) information on administrative actions and 
                administrative and judicial proceedings and orders 
                relating to paternity and support;
                    ``(B) information obtained from matches with 
                Federal, State, or local data sources;
                    ``(C) information on support collections and 
                distributions; and
                    ``(D) any other relevant information.
    ``(f) Data Matches and Other Disclosures of Information.--The 
automated system required under this section shall have the capacity, 
and be used by the State agency, to extract data at such times, and in 
such standardized format or formats, as may be required by the 
Secretary, and to share and match data with, and receive data from, 
other data bases and data matching services, in order to obtain (or 
provide) information necessary to enable the State agency (or Secretary 
or other State or Federal agencies) to carry out responsibilities under 
this part. Data matching activities of the State agency shall include 
at least the following:
            ``(1) Data bank of child support orders.--Furnish to the 
        Data Bank of Child Support Orders established under section 
        453(h) (and update as necessary, with information including 
        notice of expiration of orders) minimal information (to be 
        specified by the Secretary) on each child support case in the 
        central case registry.
            ``(2) Federal parent locator service.--Exchange data with 
        the Federal Parent Locator Service for the purposes specified 
        in section 453.
            ``(3) AFDC and medicaid agencies.--Exchange data with State 
        agencies (of the State and of other States) administering the 
        programs under part A and title XIX, as necessary for the 
        performance of State agency responsibilities under this part 
        and under such programs.
            ``(4) Intra- and interstate data matches.--Exchange data 
        with other agencies of the State, agencies of other States, and 
        interstate information networks, as necessary and appropriate 
        to carry out (or assist other States to carry out) the purposes 
        of this part.''.

SEC. 322. CENTRALIZED COLLECTION AND DISBURSEMENT OF SUPPORT PAYMENTS.

    (a) State Plan Requirement.--Section 454 (42 U.S.C. 654), as 
amended by sections 304(a) and 314(b) of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (25);
            (2) by striking the period at the end of paragraph (26) and 
        inserting ``; and''; and
            (3) by adding after paragraph (26) the following new 
        paragraph:
            ``(27) provide that the State agency, on and after October 
        1, 1998--
                    ``(A) will operate a centralized, automated unit 
                for the collection and disbursement of child support 
                under orders being enforced under this part, in 
                accordance with section 454B; and
                    ``(B) will have sufficient State staff (consisting 
                of State employees), and (at State option) contractors 
                reporting directly to the State agency to monitor and 
                enforce support collections through such centralized 
                unit, including carrying out the automated data 
                processing responsibilities specified in section 
                454A(g) and to impose, as appropriate in particular 
                cases, the administrative enforcement remedies 
                specified in section 466(c)(1).''.
    (b) Establishment of Centralized Collection Unit.--Part D of title 
IV (42 U.S.C. 651-669) is amended by adding after section 454A the 
following new section:

     ``centralized collection and disbursement of support payments

    ``Sec. 454B. (a) In General.--In order to meet the requirement of 
section 454(27), the State agency must operate a single centralized, 
automated unit for the collection and disbursement of support payments, 
coordinated with the automated data system required under section 454A, 
in accordance with the provisions of this section, which shall be--
            ``(1) operated directly by the State agency (or by two or 
        more State agencies under a regional cooperative agreement), or 
        by a single contractor responsible directly to the State 
        agency; and
            ``(2) used for the collection and disbursement (including 
        interstate collection and disbursement) of payments under 
        support orders in all cases being enforced by the State 
        pursuant to section 454(4).
    ``(b) Required Procedures.--The centralized collections unit shall 
use automated procedures, electronic processes, and computer-driven 
technology to the maximum extent feasible, efficient, and economical, 
for the collection and disbursement of support payments, including 
procedures--
            ``(1) for receipt of payments from parents, employers, and 
        other States, and for disbursements to custodial parents and 
        other obligees, the State agency, and the State agencies of 
        other States;
            ``(2) for accurate identification of payments;
            ``(3) to ensure prompt disbursement of the custodial 
        parent's share of any payment; and
            ``(4) to furnish to either parent, upon request, timely 
        information on the current status of support payments.''.
    (c) Use of Automated System.--Section 454A, as added by section 
315(a)(2) of this Act and as amended by section 321 of this Act, is 
amended by adding at the end the following new subsection:
    ``(g) Centralized Collection and Distribution of Support 
Payments.--The automated system required under this section shall be 
used, to the maximum extent feasible, to assist and facilitate 
collections and disbursement of support payments through the 
centralized collections unit operated pursuant to section 454B, through 
the performance of functions including at a minimum--
            ``(1) generation of orders and notices to employers (and 
        other debtors) for the withholding of wages (and other 
        income)--
                    ``(A) within two working days after receipt (from 
                the directory of New Hires established under section 
                453(i) or any other source) of notice of and the income 
                source subject to such withholding; and
                    ``(B) using uniform formats directed by the 
                Secretary;
            ``(2) ongoing monitoring to promptly identify failures to 
        make timely payment; and
            ``(3) automatic use of enforcement mechanisms (including 
        mechanisms authorized pursuant to section 466(c)) where 
        payments are not timely made.''.
    (d) Effective Date.--The amendments made by this section shall 
become effective on October 1, 1998.

SEC. 323. AMENDMENTS CONCERNING INCOME WITHHOLDING.

    (a) Mandatory Income Withholding.--(1) Section 466(a)(1) (42 U.S.C. 
666(a)(1)) is amended to read as follows:
            ``(1) Income withholding.--
                    (A) Under orders enforced under the state plan.--
                Procedures described in subsection (b) for the 
                withholding from income of amounts payable as support 
                in cases subject to enforcement under the State plan.
                    ``(B) Under certain orders predating change in 
                requirement.--Procedures under which all child support 
                orders issued (or modified) before October 1, 1996, and 
which are not otherwise subject to withholding under subsection (b), 
shall become subject to withholding from wages as provided in 
subsection (b) if arrearages occur, without the need for a judicial or 
administrative hearing.''.
    (2) Section 466(a)(8) (42 U.S.C. 666(a)(8)) is repealed.
    (3) Section 466(b) (42 U.S.C. 666(b)) is amended--
            (A) in the matter preceding paragraph (1), by striking 
        ``subsection (a)(1)'' and inserting ``subsection (a)(1)(A)'';
            (B) in paragraph (5), by striking all that follows 
        ``administered by'' and inserting ``the State through the 
        centralized collections unit established pursuant to section 
        454B, in accordance with the requirements of such section 
        454B.'';
            (C) in paragraph (6)(A)(i)--
                    (i) in inserting ``, in accordance with timetables 
                established by the Secretary,'' after ``must be 
                required''; and
                    (ii) by striking ``to the appropriate agency'' and 
                all that follows and inserting ``to the State 
                centralized collections unit within 5 working days 
                after the date such amount would (but for this 
                subsection) have been paid or credited to the employee, 
                for distribution in accordance with this part.'';
            (D) in paragraph (6)(A)(ii), by inserting ``be in a 
        standard format prescribed by the Secretary, and'' after 
        ``shall''; and
            (E) in paragraph (6)(D)--
                    (i) by striking ``employer who discharges'' and 
                inserting ``employer who--(A) discharges'';
                    (ii) by relocating subparagraph (A), as designated, 
                as an indented subparagraph after and below the 
                introductory matter;
                    (iii) by striking the period at the end; and
                    (iv) by adding after and below subparagraph (A) the 
                following new subparagraph:
                    ``(B) fails to withhold support from wages, or to 
                pay such amounts to the State centralized collections 
                unit in accordance with this subsection.''.
    (b) Conforming Amendment.--Section 466(c) (42 U.S.C. 666(c)) is 
repealed.
    (c) Definition of Terms.--The Secretary shall promulgate 
regulations providing definitions, for purposes of part D of title IV 
of the Social Security Act, for the term ``income'' and for such other 
terms relating to income withholding under section 466(b) of such Act 
as the Secretary may find it necessary or advisable to define.

SEC. 324. LOCATOR INFORMATION FROM INTERSTATE NETWORKS.

    Section 466(a) (42 U.S.C. 666(a)), as amended by section 323(a)(2) 
of this Act, is amended by inserting after paragraph (7) the following 
new paragraph:
            ``(8) Locator information from interstate networks.--
        Procedures ensuring that the State will neither provide funding 
        for, nor use for any purpose (including any purpose unrelated 
        to the purposes of this part), any automated interstate network 
        or system used to locate individuals--
                    ``(A) for purposes relating to the use of motor 
                vehicles; or
                    ``(B) providing information for law enforcement 
                purposes (where child support enforcement agencies are 
                otherwise allowed access by State and Federal law),
        unless all Federal and State agencies administering programs 
        under this part (including the entities established under 
        section 453) have access to information in such system or 
        network to the same extent as any other user of such system or 
        network.''.

SEC. 325. EXPANDED FEDERAL PARENT LOCATOR SERVICE.

    (a) Expanded Authority To Locate Individuals and Assets.--Section 
453 (42 U.S.C. 653) is amended--
            (1) in subsection (a), by striking all that follows 
        ``subsection (c))'' and inserting the following:
``, for the purpose of establishing parentage, establishing, setting 
the amount of, modifying, or enforcing child support obligations--
            ``(1) information on, or facilitating the discovery of, the 
        location of any individual--
                    ``(A) who is under an obligation to pay child 
                support;
                    ``(B) against whom such an obligation is sought; or
                    ``(C) to whom such an obligation is owed, including 
                such individual's social security number (or numbers), 
                most recent residential address, and the name, address, 
                and employer identification number of such individual's 
                employer; and
            ``(2) information on the individual's wages (or other 
        income) from, and benefits of, employment (including rights to 
        or enrollment in group health care coverage); and
            ``(3) information on the type, status, location, and amount 
        of any assets of, or debts owed by or to, any such 
        individual.''; and
            (2) in subsection (b)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``social security'' and all that follows 
                through ``absent parent'' and inserting ``information 
                specified in subsection (a)''; and
                    (B) in paragraph (2), by inserting before the 
                period ``, or from any consumer reporting agency (as 
                defined in section 603(f) of the Fair Credit Reporting 
                Act (15 U.S.C. 1681a(f))'';
            (3) in subsection (e)(1), by inserting before the period 
        ``, or by consumer reporting agencies''.
    (b) Reimbursement for Data From Federal Agencies.--Section 
453(e)(2) (42 U.S.C. 653(e)(2)) is amended in the fourth sentence by 
inserting before the period ``in an amount which the Secretary 
determines to be reasonable payment for the data exchange (which amount 
shall not include payment for the costs of obtaining, compiling, or 
maintaining the data)''.
    (c) Access to Consumer Reports Under Fair Credit Reporting Act.--
            (1) Section 608 of the Fair Credit Reporting Act (15 U.S.C. 
        1681f) is amended--
                    (A) by striking ``, limited to'' and inserting ``to 
                a governmental agency (including the entire consumer 
                report, in the case of a Federal, State, or local 
                agency administering a program under part D of title IV 
                of the Social Security Act, and limited to''; and
                    (B) by striking ``employment, to a governmental 
                agency'' and inserting ``employment, in the case of any 
                other governmental agency)''.
            (2) Reimbursement for reports by state agencies and credit 
        bureaus.--Section 453 (42 U.S.C. 653) is amended by adding at 
        the end the following new subsection:
    ``(g) The Secretary is authorized to reimburse costs to State 
agencies and consumer credit reporting agencies the costs incurred by 
such entities in furnishing information requested by the Secretary 
pursuant to this section in an amount which the Secretary determines to 
be reasonable payment for the data exchange (which amount shall not 
include payment for the costs of obtaining, compiling, or maintaining 
the data).''.
    (d) Disclosure of Tax Return Information.--(1) Section 
6103(1)(6)(A)(ii) of the Internal Revenue Code of 1986 is amended by 
striking ``, but only if'' and all that follows and inserting a period.
    (2) Section 6103(1)(8)(A) of the Internal Revenue Code of 1986 is 
amended by inserting ``Federal,'' before ``State or local''.
    (e) Technical Amendments.--
            (1) Sections 452(a)(9), 453(a), 453(b), 463(a), and 463(e) 
        (42 U.S.C. 652(a)(9), 653(a), 653(b), 663(a), and 663(e)) are 
        each amended by inserting ``Federal'' before ``Parent'' each 
        place it appears.
            (2) Section 453 (42 U.S.C. 653) is amended in the heading 
        by adding ``federal'' before ``parent''.
    (f) New Components.--Section 453 (42 U.S.C. 653), as amended by 
subsection (c)(2) of this section, is amended by adding at the end the 
following:
    ``(h) Data Bank of Child Support Orders.--
            ``(1) In general.--Not later than October 1, 1998, In order 
        to assist States in administering their State plans under this 
        part and parts A, F, and G, and for the other purposes 
        specified in this section, the Secretary shall establish and 
        maintain in the Federal Parent Locator Service an automated 
        registry to be known as the Data Bank of Child Support Orders, 
        which shall contain abstracts of child support orders and other 
        information described in paragraph (2) on each case in each 
        State central case registry maintained pursuant to section 
        454A(e), as furnished (and regularly updated), pursuant to 
        section 454A(f), by State agencies administering programs under 
        this part.
            ``(2) Case information.--The information referred to in 
        paragraph (1), as specified by the Secretary, shall include 
        sufficient information (including names, social security 
        numbers or other uniform identification numbers, and State case 
        identification numbers) to identify the individuals who owe or 
        are owed support (or with respect to or on behalf of whom 
        support obligations are sought to be established), and the 
        State or States which have established or modified, or are 
        enforcing or seeking to establish, such an order.
    ``(i) Directory of New Hires.--
            ``(1) In general.--Not later than October 1, 1998, In order 
        to assist States in administering their State plans under this 
        part and parts A, F, and G, and for the other purposes 
        specified in this section, the Secretary shall establish and 
        maintain in the Federal Parent Locator Service an automated 
        directory to be known as the directory of New Hires, 
        containing--
                    ``(A) information supplied by employers on each 
                newly hired individual, in accordance with paragraph 
                (2); and
                    ``(B) information supplied by State agencies 
                administering State unemployment compensation laws, in 
                accordance with paragraph (3).
            ``(2) Employer information.--
                    ``(A) Information required.--Subject to 
                subparagraph (D), each employer shall furnish to the 
                Secretary, for inclusion in the directory established 
                under this subsection, not later than 10 days after the 
                date (on or after October 1, 1998) on which the 
                employer hires a new employee (as defined in 
                subparagraph (C)), a report containing the name, date 
                of birth, and social security number of such employee, 
                and the employer identification number of the employer.
                    ``(B) Reporting method and format.--The Secretary 
                shall provide for transmission of the reports required 
                under subparagraph (A) using formats and methods which 
                minimize the burden on employers, which shall include--
                            ``(i) automated or electronic transmission 
                        of such reports;
                            ``(ii) transmission by regular mail; and
                            ``(iii) transmission of a copy of the form 
                        required for purposes of compliance with 
                        section 3402 of the Internal Revenue Code of 
                        1986.
                    ``(C) Employee defined.--For purposes of this 
                paragraph, the term `employee' means any individual 
                subject to the requirement of section 3402(f)(2) of the 
                Internal Revenue Code of 1986.
                    ``(D) Paperwork reduction requirement.--As required 
                by the information resources management policies 
                published by the Director of the Office of Management 
                and Budget pursuant to section 3504(b)(1) of title 44, 
                United States Code, the Secretary, in order to minimize 
                the cost and reporting burden on employers, shall not 
                require reporting pursuant to this paragraph if an 
                alternative reporting mechanism can be developed that 
                either relies on existing Federal or State reporting or 
                enables the Secretary to collect the needed information 
                in a more cost-effective and equally expeditious 
                manner, taking into account the reporting costs on 
                employers.
                    ``(E) Civil money penalty on non-complying 
                employers.--(i) Any employer that fails to make a 
                timely report in accordance with this paragraph with 
                respect to an individual shall be subject to a civil 
                money penalty, for each calendar year in which the 
                failure occurs, of the lesser of $500 or 1 percent of 
                the wages or other compensation paid by such employer 
                to such individual during such calendar year.
                    ``(ii) Subject to clause (iii), the provisions of 
                section 1128A (other than subsections (a) and (b) 
                thereof) shall apply to a civil money penalty under 
                clause (i) in the same manner as they apply to a civil 
                money penalty or proceeding under section 1128A(a).
                    ``(iii) Any employer with respect to whom a penalty 
                under this subparagraph is upheld after an 
                administrative hearing shall be liable to pay all costs 
                of the Secretary with respect to such hearing.
            ``(3) Employment security information.--
                    ``(A) Reporting requirement.--Each State agency 
                administering a State unemployment compensation law 
                approved by the Secretary of Labor under the Federal 
                Unemployment Tax Act shall furnish to the Secretary of 
                Health and Human Services extracts of the reports to 
                the Secretary of Labor concerning the wages and 
                unemployment compensation paid to individuals required 
                under section 303(a)(6), in accordance with 
                subparagraph (B).
                    ``(B) Manner of compliance.--The extracts required 
                under subparagraph (A) shall be furnished to the 
                Secretary of Health and Human Services on a quarterly 
                basis, with respect to calendar quarters beginning on 
                and after October 1, 1996, by such dates, in such 
                format, and containing such information as required by 
                that Secretary in regulations.
    ``(j) Data Matches and Other Disclosures.--
            ``(1) Verification by social security administration.--(A) 
        The Secretary shall transmit data on individuals and employers 
        maintained under this section to the Social Security 
        Admistration to the extent necessary for verification in 
        accordance with subparagraph (B).
            ``(B) The Social Security Administration shall verify the 
        accuracy of, correct or supply to the extent necessary and 
        feasible, and report to the Secretary, the following 
        information in data supplied by the Secretary pursuant to 
        subparagraph (A):
                    ``(i) the name, social security number, and birth 
                date of each individual; and
                    ``(ii) the employer identification number of each 
                employer.
            ``(2) Child support locator matches.--For the purpose of 
        locating individuals for purposes of paternity establishment 
        and establishment and enforcement of child support, the 
        Secretary shall--
                    ``(A) match data in the directory of New Hires 
                against the child support order abstracts in the Data 
                Bank of Child Support Orders not less often than every 
                2 working days; and
                    ``(B) report information obtained from such a match 
                to concerned State agencies operating programs under 
                this part not later than 2 working days after such 
                match.
            ``(3) Data matches and disclosures of data in all 
        registries for title iv program purposes.--The Secretary 
        shall--
                    ``(A) perform matches of data in each component of 
                the Federal Parent Locator Service maintained under 
                this section against data in each other such component 
                (other than the matches required pursuant to paragraph 
                (1)), and report information resulting from such 
                matches to State agencies operating programs under this 
                part and parts A, F, and G; and
                    ``(B) disclose data in such registries to such 
                State agencies,
        to the extent, and with the frequency, that the Secretary 
        determines to be effective in assisting such States to carry 
        out their responsibilities under such programs.
    ``(k) Fees.--
            ``(1) For ssa verification.--The Secretary shall reimburse 
        the Commissioner of Social Security, at a rate negotiated 
        between the Secretary and the Commissioner, the costs incurred 
        by the Commissioner in performing the verification services 
        specified in subsection (j).
            ``(2) For information from sesas.--The Secretary shall 
        reimburse costs incurred by State employment security agencies 
        in furnishing data as required by subsection (j)(3), at rates 
        which the Secretary determines to be reasonable (which rates 
        shall not include payment for the costs of obtaining, 
        compiling, or maintaining such data).
            ``(3) For information furnished to state and federal 
        agencies.--State and Federal agencies receiving data or 
        information from the Secretary pursuant to this section shall 
        reimburse the costs incurred by the Secretary in furnishing 
        such data or information, at rates which the Secretary 
        determines to be reasonable (which rates shall include payment 
        for the costs of obtaining, verifying, maintaining, and 
        matching such data or information).
    ``(l) Restriction on Disclosure and Use.--Data in the Federal 
Parent Locator Service, and information resulting from matches using 
such data, shall not be used or disclosed except as specifically 
provided in this section.
    ``(m) Retention of Data.--Data in the Federal Parent Locator 
Service, and data resulting from matches performed pursuant to this 
section, shall be retained for such period (determined by the 
Secretary) as appropriate for the data uses specified in this section.
    ``(n) Information Integrity and Security.--The Secretary shall 
establish and implement safeguards with respect to the entities 
established under this section designed to--
            ``(1) ensure the accuracy and completeness of information 
        in the Federal Parent Locator Service; and
            ``(2) restrict access to confidential information in the 
        Federal Parent Locator Service to authorized persons, and 
        restrict use of such information to authorized purposes.
    ``(o) Limit on Liability.--The Secretary shall not be liable to 
either a State or an individual for inaccurate information provided to 
a component of the Federal Parent Locator Service section and disclosed 
by the Secretary in accordance with this section.''.
    (g) Conforming Amendments.--
            (1) To part d of title iv of the social security act.--
        Section 454(8)(B) (42 U.S.C. 654(8)(B)) is amended to read as 
        follows:
                    ``(B) the Federal Parent Locator Service 
                established under section 453;''.
            (2) To federal unemployment tax act.--Section 3304(16) of 
        the Internal Revenue Code of 1986 is amended--
                    (A) by striking ``Secretary of Health, Education, 
                and Welfare'' each place such term appears and 
                inserting ``Secretary of Health and Human Services'';
                    (B) in subparagraph (B), by striking ``such 
                information'' and all that follows and inserting 
                ``information furnished under subparagraph (A) or (B) 
                is used only for the purposes authorized under such 
                subparagraph;'';
                    (C) by striking ``and'' at the end of subparagraph 
                (A);
                    (D) by redesignating subparagraph (B) as 
                subparagraph (C); and
                    (E) by inserting after subparagraph (A) the 
                following new subparagraph:
                    ``(B) wage and unemployment compensation 
                information contained in the records of such agency 
                shall be furnished to the Secretary of Health and Human 
                Services (in accordance with regulations promulgated by 
                such Secretary) as necessary for the purposes of the 
                directory of New Hires established under section 453(i) 
                of the Social Security Act, and''.
            (3) To state grant program under title iii of the social 
        security act.--Section 303(a) (42 U.S.C. 503(a)) is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (8);
                    (B) by striking the period at the end of paragraph 
                (9) and inserting ``; and''; and
                    (C) by adding after paragraph (9) the following new 
                paragraph:
            ``(10) The making of quarterly electronic reports, at such 
        dates, in such format, and containing such information, as 
        required by the Secretary of Health and Human Services under 
        section 453(i)(3), and compliance with such provisions as such 
        Secretary may find necessary to ensure the correctness and 
        verification of such reports.''.

SEC. 326. USE OF SOCIAL SECURITY NUMBERS.

    (a) State Law Requirement.--Section 466(a) (42 U.S.C. 666(a)), as 
amended by section 301(a) of this Act, is amended by adding at the end 
the following new paragraph:
            ``(13) Social security numbers required.--Procedures 
        requiring the recording of social security numbers--
                    ``(A) of both parties on marriage licenses and 
                divorce decrees; and
                    ``(B) of both parents, on birth records and child 
                support and paternity orders.''.
    (b) Clarification of Federal Policy.--Section 205(c)(2)(C)(ii) (42 
U.S.C. 405(c)(2)(C)(ii)) is amended by striking the third sentence and 
inserting ``This clause shall not be considered to authorize disclosure 
of such numbers except as provided in the preceding sentence.''.

         Subtitle D--Streamlining and Uniformity of Procedures

SEC. 331. ADOPTION OF UNIFORM STATE LAWS.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 301(a) 
and 328(a) of this Act, is amended by adding at the end the following 
new paragraph:
            ``(14) Interstate enforcement.--
                    ``(A) Adoption of uifsa.--Procedures under which 
                the State adopts in its entirety (with the 
                modifications and additions specified in this 
                paragraph) not later than January 1, 1997, and uses on 
                and after such date, the Uniform Interstate Family 
                Support Act, as approved by the National Conference of 
                Commissioners on Uniform State Laws in August, 1992.
                    ``(B) Expanded application of uifsa.--The State law 
                adopted pursuant to subparagraph (A) shall be applied 
                to any case--
                            ``(i) involving an order established or 
                        modified in one State and for which a 
                        subsequent modification is sought in another 
                        State; or
                            ``(ii) in which interstate activity is 
                        required to enforce an order.
                    ``(C) jurisdiction to modify orders.--The State law 
                adopted pursuant to subparagraph (A) of this paragraph 
                shall contain the following provision in lieu of 
                section 611(a)(1) of the Uniform Interstate Family 
                Support Act described in such subparagraph (A):
            ```(1) the following requirements are met:
                    ```(i) the child, the individual obligee, and the 
                obligor--
                            ```(I) do not reside in the issuing State; 
                        and
                            ```(II) either reside in this State or are 
                        subject to the jurisdiction of this State 
                        pursuant to section 201; and
                    ```(ii) (in any case where another State is 
                exercising or seeks to exercise jurisdiction to modify 
                the order) the conditions of section 204 are met to the 
                same extent as required for proceedings to establish 
                orders; or'.
                    ``(D) Service of process.--The State law adopted 
                pursuant to subparagraph (A) shall recognize as valid, 
                for purposes of any proceeding subject to such State 
                law, service of process upon persons in the State (and 
                proof of such service) by any means acceptable in 
another State which is the initiating or responding State in such 
proceeding.
                    ``(E) Cooperation by employers.--The State law 
                adopted pursuant to subparagraph (A) shall provide for 
                the use of procedures (including sanctions for 
                noncompliance) under which all entities in the State 
                (including for-profit, nonprofit, and governmental 
                employers) are required to provide promptly, in 
                response to a request by the State agency of that or 
                any other State administering a program under this 
                part, information on the employment, compensation, and 
                benefits of any individual employed by such entity as 
                an employee or contractor.''.

SEC. 332. IMPROVEMENTS TO FULL FAITH AND CREDIT FOR CHILD SUPPORT 
              ORDERS.

    Section 1738B of title 28, United States Code, is amended--
            (1) in subsection (a)(2), by striking ``subsection (e)'' 
        and inserting ``subsections (e), (f), and (i)'';
            (2) in subsection (b), by inserting after the 2nd 
        undesignated paragraph the following:
            ```child's home State' means the State in which a child 
        lived with a parent or a person acting as parent for at least 
        six consecutive months immediately preceding the time of filing 
        of a petition or comparable pleading for support and, if a 
        child is less than six months old, the State in which the child 
        lived from birth with any of them. A period of temporary 
        absence of any of them is counted as part of the six-month 
        period.'';
            (3) in subsection (c), by inserting ``by a court of a 
        State'' before ``is made'';
            (4) in subsection (c)(1), by inserting ``and subsections 
        (e), (f), and (g)'' after ``located'';
            (5) in subsection (d)--
                    (A) by inserting ``individual'' before 
                ``contestant''; and
                    (B) by striking ``subsection (e)'' and inserting 
                ``subsections (e) and (f)'';
            (6) in subsection (e), by striking ``make a modification of 
        a child support order with respect to a child that is made'' 
        and inserting ``modify a child support order issued'';
            (7) in subsection (e)(1), by inserting ``pursuant to 
        subsection (i)'' before the semicolon;
            (8) in subsection (e)(2)--
                    (A) by inserting ``individual'' before 
                ``contestant'' each place such term appears; and
                    (B) by striking ``to that court's making the 
                modification and assuming'' and inserting ``with the 
                State of continuing, exclusive jurisdiction for a court 
                of another State to modify the order and assume'';
            (9) by redesignating subsections (f) and (g) as subsections 
        (g) and (h), respectively;
            (10) by inserting after subsection (e) the following:
    ``(f) Recognition of Child Support Orders.--If one or more child 
support orders have been issued in this or another State with regard to 
an obligor and a child, a court shall apply the following rules in 
determining which order to recognize for purposes of continuing, 
exclusive jurisdiction and enforcement:
            ``(1) If only one court has issued a child support order, 
        the order of that court must be recognized.
            ``(2) If two or more courts have issued child support 
        orders for the same obligor and child, and only one of the 
        courts would have continuing, exclusive jurisdiction under this 
        section, the order of that court must be recognized.
            ``(3) If two or more courts have issued child support 
        orders for the same obligor and child, and only one of the 
        courts would have continuing, exclusive jurisdiction under this 
        section, an order issued by a court in the current home State 
        of the child must be recognized, but if an order has not been 
        issued in the current home State of the child, the order most 
        recently issued must be recognized.
            ``(4) If two or more courts have issued child support 
        orders for the same obligor and child, and none of the courts 
        would have continuing, exclusive jurisdiction under this 
        section, a court may issue a child support order, which must be 
        recognized.
            ``(5) The court that has issued an order recognized under 
        this subsection is the court having continuing, exclusive 
        jurisdiction.'';
            (11) in subsection (g) (as so redesignated)--
                    (A) by striking ``Prior'' and inserting 
                ``Modified''; and
                    (B) by striking ``subsection (e)'' and inserting 
                ``subsections (e) and (f)'';
            (12) in subsection (h) (as so redesignated)--
                    (A) in paragraph (2), by inserting ``including the 
                duration of current payments and other obligations of 
                support'' before the comma; and
                    (B) in paragraph (3), by inserting ``arrears 
                under'' after ``enforce''; and
            (13) by adding at the end the following:
    ``(i) Registration for Modification.--If there is no individual 
contestant or child residing in the issuing State, the party or support 
enforcement agency seeking to modify, or to modify and enforce, a child 
support order issued in another State shall register that order in a 
State with jurisdiction over the nonmovant for the purpose of 
modification.''.

SEC. 333. STATE LAWS PROVIDING EXPEDITED PROCEDURES.

    (a) State Law Requirements.--Section 466 (42 U.S.C. 666) is 
amended--
            (1) in subsection (a)(2), in the first sentence, to read as 
        follows: ``Expedited administrative and judicial procedures 
        (including the procedures specified in subsection (c)) for 
        establishing paternity and for establishing, modifying, and 
        enforcing support obligations.''; and
            (2) by adding after subsection (b) the following new 
        subsection:
    ``(c) Expedited Procedures.--The procedures specified in this 
subsection are the following:
            ``(1) Administrative action by state agency.--Procedures 
        which give the State agency the authority (and recognize and 
        enforce the authority of State agencies of other States), 
        without the necessity of obtaining an order from any other 
        judicial or administrative tribunal (but subject to due process 
        safeguards, including (as appropriate) requirements for notice, 
        opportunity to contest the action, and opportunity for an 
        appeal on the record to an independent administrative or 
        judicial tribunal), to take the following actions relating to 
        establishment or enforcement of orders:
                    ``(A) Genetic testing.--To order genetic testing 
                for the purpose of paternity establishment as provided 
                in section 466(a)(5).
                    ``(B) Default orders.--To enter a default order, 
                upon a showing of service of process and any additional 
                showing required by State law--
                            ``(i) establishing paternity, in the case 
                        of any putative father who refuses to submit to 
                        genetic testing; and
                            ``(ii) establishing or modifying a support 
                        obligation, in the case of a parent (or other 
                        obligor or obligee) who fails to respond to 
                        notice to appear at a proceeding for such 
                        purpose.
                    ``(C) Subpoenas.--To subpoena any financial or 
                other information needed to establish, modify, or 
                enforce an order, and to sanction failure to respond to 
                any such subpoena.
                    ``(D) Access to personal and financial 
                information.--To obtain access, subject to safeguards 
                on privacy and information security, to the following 
                records (including automated access, in the case of 
                records maintained in automated data bases):
                            ``(i) records of other State and local 
                        government agencies, including--
                                    ``(I) vital statistics (including 
                                records of marriage, birth, and 
                                divorce);
                                    ``(II) State and local tax and 
                                revenue records (including information 
                                on residence address, employer, income 
                                and assets);
                                    ``(III) records concerning real and 
                                titled personal property;
                                    ``(IV) records of occupational and 
                                professional licenses, and records 
                                concerning the ownership and control of 
                                corporations, partnerships, and other 
                                business entities;
                                    ``(V) employment security records;
                                    ``(VI) records of agencies 
                                administering public assistance 
                                programs;
                                    ``(VII) records of the motor 
                                vehicle department; and
                                    ``(VIII) corrections records; and
                            ``(ii) certain records held by private 
                        entities, including--
                                    ``(I) customer records of public 
                                utilities and cable television 
                                companies; and
                                    ``(II) information (including 
                                information on assets and liabilities) 
                                on individuals who owe or are owed 
                                support (or against or with respect to 
                                whom a support obligation is sought) 
                                held by financial institutions (subject 
                                to limitations on liability of such 
                                entities arising from affording such 
                                access).
                    ``(E) Income withholding.--To order income 
                withholding in accordance with subsection (a)(1) and 
                (b) of section 466.
                    ``(F) Change in payee.--(In cases where support is 
                subject to an assignment under section 402(a)(26), 
                471(a)(17), or 1912, or to a requirement to pay through 
                the centralized collections unit under section 454B) 
                upon providing notice to obligor and obligee, to direct 
                the obligor or other payor to change the payee to the 
                appropriate government entity.
                    ``(G) Secure assets to satisfy arrearages.--For the 
                purpose of securing overdue support--
                            ``(i) to intercept and seize any periodic 
                        or lump-sum payment to the obligor by or 
                        through a State or local government agency, 
                        including--
                                    ``(I) unemployment compensation, 
                                workers' compensation, and other 
                                benefits;
                                    ``(II) judgments and settlements in 
                                cases under the jurisdiction of the 
                                State or local government; and
                                    ``(III) lottery winnings;
                            ``(ii) to attach and seize assets of the 
                        obligor held by financial institutions;
                            ``(iii) to attach public and private 
                        retirement funds in appropriate cases, as 
                        determined by the Secretary; and
                            ``(iv) to impose liens in accordance with 
                        paragraph (a)(4) and, in appropriate cases, to 
                        force sale of property and distribution of 
                        proceeds.
                    ``(H) Increase monthly payments.--For the purpose 
                of securing overdue support, to increase the amount of 
                monthly support payments to include amounts for 
                arrearages (subject to such conditions or restrictions 
                as the State may provide).
                    ``(I) Suspension of drivers' licenses.--To suspend 
                drivers' licenses of individuals owing past-due 
                support, in accordance with subsection (a)(16).
            ``(2) Substantive and procedural rules.--The expedited 
        procedures required under subsection (a)(2) shall include the 
        following rules and authority, applicable with respect to all 
        proceedings to establish paternity or to establish, modify, or 
        enforce support orders:
                    ``(A) Locator information; presumptions concerning 
                notice.--Procedures under which--
                            ``(i) the parties to any paternity or child 
                        support proceedings are required (subject to 
                        privacy safeguards) to file with the tribunal 
                        before entry of an order, and to update as 
                        appropriate, information on location and 
                        identity (including Social Security number, 
                        residential and mailing addresses, telephone 
                        number, driver's license number, and name, 
                        address, and telephone number of employer); and
                            ``(ii) in any subsequent child support 
                        enforcement action between the same parties, 
                        the tribunal shall be authorized, upon 
                        sufficient showing that diligent effort has 
                        been made to ascertain such party's current 
                        location, to deem due process requirements for 
                        notice and service of process to be met, with 
                        respect to such party, by delivery to the most 
                        recent residential or employer address so filed 
                        pursuant to clause (i).
                    ``(B) Statewide jurisdiction.--Procedures under 
                which--
                            ``(i) the State agency and any 
                        administrative or judicial tribunal with 
                        authority to hear child support and paternity 
                        cases exerts statewide jurisdiction over the 
                        parties, and orders issued in such cases have 
                        statewide effect; and
                            ``(ii) (in the case of a State in which 
                        orders in such cases are issued by local 
                        jurisdictions) a case may be transferred 
                        between jurisdictions in the State without need 
                        for any additional filing by the petitioner, or 
                        service of process upon the respondent, to 
                        retain jurisdiction over the parties.''.
    (c) Exceptions From State Law Requirements.--Section 466(d) (42 
U.S.C. 666(d)) is amended--
            (1) by striking ``(d) If'' and inserting the following:
    ``(d) Exemptions From Requirements.--
            ``(1) In general.--Subject to paragraph (2), if''; and
            (2) by adding at the end the following new paragraph:
            ``(2) Nonexempt requirements.--The Secretary shall not 
        grant an exemption from the requirements of--
                    ``(A) subsection (a)(5) (concerning procedures for 
                paternity establishment);
                    ``(B) subsection (a)(10) (concerning modification 
                of orders);
                    ``(C) subsection (a)(12) (concerning recording of 
                orders in the central State case registry);
                    ``(D) subsection (a)(13) (concerning recording of 
                Social Security numbers);
                    ``(E) subsection (a)(14) (concerning interstate 
                enforcement); or
                    ``(F) subsection (c) (concerning expedited 
                procedures), other than paragraph (1)(A) thereof 
                (concerning establishment or modification of support 
                amount).''.
    (d) Automation of State Agency Functions.--Section 454A, as added 
by section 115(a)(2) of this Act and as amended by sections 121 and 
122(c) of this Act, is amended by adding at the end the following new 
subsection:
    ``(h) Expedited Administrative Procedures.--The automated system 
required under this section shall be used, to the maximum extent 
feasible, to implement any expedited administrative procedures required 
under section 466(c).''.

                  Subtitle E--Paternity Establishment

SEC. 341. STATE LAWS CONCERNING PATERNITY ESTABLISHMENT.

    (a) State Laws Required.--Section 466(a)(5) (42 U.S.C. 666(a)(5)) 
is amended--
            (1) by striking ``(5)'' and inserting the following:
            ``(5) Procedures concerning paternity establishment.--'';
            (2) in subparagraph (A)--
                    (A) by striking ``(A)(i)'' and inserting the 
                following:
                    ``(A) Establishment process available from birth 
                until age eighteen.--(i)''; and
                    (B) by indenting clauses (i) and (ii) so that the 
                left margin of such clauses is 2 ems to the right of 
                the left margin of paragraph (4);
            (3) in subparagraph (B)--
                    (A) by striking ``(B)'' and inserting the 
                following:
                    ``(B) Procedures concerning genetic testing.--
                (i)'';
                    (B) in clause (i), as redesignated, by inserting 
                before the period ``, where such request is supported 
                by a sworn statement (I) by such party alleging 
                paternity setting forth facts establishing a reasonable 
                possibility of the requisite sexual contact of the 
                parties, or (II) by such party denying paternity 
                setting forth facts establishing a reasonable 
                possibility of the nonexistence of sexual contact of 
                the parties;'';
                    (C) by inserting after and below clause (i) (as 
                redesignated) the following new clause:
                    ``(ii) Procedures which require the State agency, 
                in any case in which such agency orders genetic 
                testing--
                            ``(I) to pay costs of such tests, subject 
                        to recoupment (where the State so elects) from 
                        the punitive father if paternity is 
                        established; and
                            ``(II) to obtain additional testing in any 
                        case where an original test result is disputed, 
                        upon request and advance payment by the 
                        disputing party.'';
            (4) by striking subparagraphs (C) and (D) and inserting the 
        following:
                    ``(C) Paternity acknowledgment.--(i) Procedures for 
                a simple civil process for voluntarily acknowledging 
                paternity under which the State must provide that, 
                before a mother and a putative father can sign an 
                acknowledgment of paternity, the putative father and 
                the mother must be given notice, orally, in writing, 
                and in a language that each can understand, of the 
                alternatives to, the legal consequences of, and the 
                rights (including, if 1 parent is a minor, any rights 
                afforded due to minority status) and responsibilities 
                that arise from, signing the acknowledgment.
                    ``(ii) Such procedures must include a hospital-
                based program for the voluntary acknowledgment of 
                paternity focusing on the period immediately before or 
                after the birth of a child.
                    ``(iii) Such procedures must require the State 
                agency responsible for maintaining birth records to 
                offer voluntary paternity establishment services.
                    ``(iv) The Secretary shall prescribe regulations 
                governing voluntary paternity establishment services 
                offered by hospitals and birth record agencies. The 
                Secretary shall prescribe regulations specifying the 
                types of other entities that may offer voluntary 
                paternity establishment services, and governing the 
                provision of such services, which shall include a 
                requirement that such an entity must use the same 
                notice provisions used by, the same materials used by, 
                provide the personnel providing such services with the 
                same training provided by, and evaluate the provision 
                of such services in the same manner as, voluntary 
                paternity establishment programs of hospitals and birth 
                record agencies.
                    ``(v) Such procedures must require the State and 
                those required to establish paternity to use only the 
                affidavit developed under section 452(a)(7) for the 
                voluntary acknowledgment of paternity, and to give full 
                faith and credit to such an affidavit signed in any 
                other State.
                    ``(D) Status of signed paternity knowledgment.--(i) 
                Procedures under which a signed acknowledgment of 
                paternity is considered a legal finding of paternity, 
                subject to the right of any signatory to rescind the 
                acknowledgment within 60 days.
                    ``(ii)(I) Procedures under which, after the 60-day 
                period referred to in clause (i), a signed 
                acknowledgment of paternity may be challenged in court 
                only on the basis of fraud, duress, or material mistake 
                of fact, with the burden of proof upon the challenger, 
                and under which the legal responsibilities (including 
                child support obligations) of any signatory arising 
                from the acknowledgment may not be suspended during the 
                challenge, except for good cause shown.
                    ``(II) Procedures under which, after the 60-day 
                period referred to in clause (i), a minor who signs an 
                acknowledgment of paternity other than in the presence 
                of a parent or court-appointed guardian ad litem may 
                rescind the acknowledgment in a judicial or 
                administrative proceeding, until the earlier of--
                            ``(aa) attaining the age of majority; or
                            ``(bb) the date of the first judicial or 
                        administrative proceeding brought (after the 
                        signing) to establish a child support 
                        obligation, visitation rights, or custody 
                        rights with respect to the child whose 
                        paternity is the subject of the acknowledgment, 
                        and at which the minor is represented by a 
                        parent, guardian ad litem, or attorney.'';
            (5) by striking subparagraph (E) and inserting the 
        following:
                    ``(E) Bar on acknowledgment ratification 
                proceedings.--Procedures under which no judicial or 
                administrative proceedings are required or permitted to 
                ratify an unchallenged acknowledgment of paternity.'';
            (6) by striking subparagraph (F) and inserting the 
        following:
                    ``(F) Admissibility of genetic testing results.--
                Procedures--
                            ``(i) requiring that the State admit into 
                        evidence, for purposes of establishing 
                        paternity, results of any genetic test that 
                        is--
                                    ``(I) of a type generally 
                                acknowledged, by accreditation bodies 
                                designated by the Secretary, as 
                                reliable evidence of paternity; and
                                    ``(II) performed by a laboratory 
                                approved by such an accreditation body;
                            ``(ii) that any objection to genetic 
                        testing results must be made in writing not 
                        later than a specified number of days before 
                        any hearing at which such results may be 
                        introduced into evidence (or, at State option, 
                        not later than a specified number of days after 
                        receipt of such results); and
                            ``(iii) that, if no objection is made, the 
                        test results are admissible as evidence of 
                        paternity without the need for foundation 
                        testimony or other proof of authenticity or 
                        accuracy.''; and
            (7) by adding after subparagraph (H) the following new 
        subparagraphs:
                    ``(I) No right to jury trial.--Procedures providing 
                that the parties to an action to establish paternity 
                are not entitled to jury trial.
                    ``(J) Temporary support order based on probable 
                paternity in contested cases.--Procedures which require 
                that a temporary order be issued, upon motion by a 
                party, requiring the provision of child support 
pending an administrative or judicial determination of parentage, where 
there is clear and convincing evidence of paternity (on the basis of 
genetic tests or other evidence).
                    ``(K) Proof of certain support and paternity 
                establishment costs.--Procedures under which bills for 
                pregnancy, childbirth, and genetic testing are 
                admissible as evidence without requiring third-party 
                foundation testimony, and shall constitute prima facie 
                evidence of amounts incurred for such services and 
                testing on behalf of the child.
                    ``(L) Waiver of state debts for cooperation.--At 
                the option of the State, procedures under which the 
                tribunal establishing paternity and support has 
                discretion to waive rights to all or part of amounts 
                owed to the State (but not to the mother) for costs 
                related to pregnancy, childbirth, and genetic testing 
                and for public assistance paid to the family where the 
                father cooperates or acknowledges paternity before or 
                after genetic testing.
                    ``(M) Standing of putative fathers.--Procedures 
                ensuring that the putative father has a reasonable 
                opportunity to initiate a paternity action.''.
    (b) National Paternity Acknowledgment Affidavit.--Section 452(a)(7) 
(42 U.S.C. 652(a)(7)) is amended by inserting ``, and develop an 
affidavit to be used for the voluntary acknowledgment of paternity 
which shall include the social security account number of each parent'' 
before the semicolon.
    (c) Technical Amendment.--Section 468 (42 U.S.C. 668) is amended by 
striking ``a simple civil process for voluntarily acknowledging 
paternity and''.

SEC. 342. OUTREACH FOR VOLUNTARY PATERNITY ESTABLISHMENT.

    (a) State Plan Requirement.--Section 454(23) (42 U.S.C. 654(23)) is 
amended by adding at the end the following new subparagraph:
                    ``(C) publicize the availability and encourage the 
                use of procedures for voluntary establishment of 
                paternity and child support through a variety of means, 
                which--
                            ``(i) include distribution of written 
                        materials as health care facilities (including 
                        hospitals and clinics), and other locations 
                        such as schools;
                            ``(ii) may include pre-natal programs to 
                        educate expectant couples on individual and 
                        joint rights and responsibilities with respect 
                        to paternity (and may require all expectant 
                        recipients of assistance under part A to 
                        participate in such pre-natal programs, as an 
                        element of cooperation with efforts to 
                        establish paternity and child support);
                            ``(iii) include, with respect to each child 
                        discharged from a hospital after birth for whom 
                        paternity or child support has not been 
                        established, reasonable follow-up efforts 
                        (including at least one contact of each parent 
                        whose whereabouts are known, except where there 
                        is reason to believe such follow-up efforts 
                        would put mother or child at risk), providing--
                                    ``(I) in the case of a child for 
                                whom paternity has not been 
                                established, information on the 
                                benefits of and procedures for 
                                establishing paternity; and
                                    ``(II) in the case of a child for 
                                whom paternity has been established but 
                                child support has not been established, 
                                information on the benefits of and 
                                procedures for establishing a child 
                                support order, and an application for 
                                child support services;''.
    (b) Enhanced Federal Matching.--Section 455(a)(1)(C) (42 U.S.C. 
655(a)(1)(C)) is amended--
            (1) by inserting ``(i)'' before ``laboratory costs'', and
            (2) by inserting before the semicolon ``, and (ii) costs of 
        outreach programs designed to encourage voluntary 
        acknowledgment of paternity''.
    (c) Effective Dates.--(1) The amendments made by subsection (a) 
shall become effective October 1, 1997.
    (2) The amendments made by subsection (b) shall be effective with 
respect to calendar quarters beginning on and after October 1, 1996.

      Subtitle F--Establishment and Modification of Support Orders

SEC. 351. NATIONAL CHILD SUPPORT GUIDELINES COMMISSION.

    (a) Establishment.--There is hereby established a commission to be 
known as the ``National Child Support Guidelines Commission'' (in this 
section referred to as the ``Commission'').
    (b) General Duties.--The Commission shall develop a national child 
support guideline for consideration by the Congress that is based on a 
study of various guideline models, the benefits and deficiencies of 
such models, and any needed improvements.
    (c) Membership.--
            (1) Number; appointment.--
                    (A) In general.--The Commission shall be composed 
                of 12 individuals appointed jointly by the Secretary of 
                Health and Human Services and the Congress, not later 
                than January 15, 1997, of which--
                            (i) 2 shall be appointed by the Chairman of 
                        the Committee on Finance of the Senate, and 1 
                        shall be appointed by the ranking minority 
                        member of the Committee;
                            (ii) 2 shall be appointed by the Chairman 
                        of the Committee on Ways and Means of the House 
                        of Representatives, and 1 shall be appointed by 
                        the ranking minority member of the Committee; 
                        and
                            (iii) 6 shall be appointed by the Secretary 
                        of Health and Human Services.
                    (B) Qualifications of members.--Members of the 
                Commission shall have expertise and experience in the 
                evaluation and development of child support guidelines. 
                At least 1 member shall represent advocacy groups for 
                custodial parents, at least 1 member shall represent 
                advocacy groups for noncustodial parents, and at least 
                1 member shall be the director of a State program under 
                part D of title IV of the Social Security Act.
            (2) Terms of office.--Each member shall be appointed for a 
        term of 2 years. A vacancy in the Commission shall be filed in 
        the manner in which the original appointment was made.
    (d) Commission Powers, Compensation, Access to Information, and 
Supervision.--The first sentence of subparagraph (C), the first and 
third sentences of subparagraph (D), subparagraph (F) (except with 
respect to the conduct of medical studies), clauses (ii) and (iii) of 
subparagraph (G), and subparagraph (H) of section 1886(e)(6) of the 
Social Security Act shall apply to the Commission in the same manner in 
which such provisions apply to the Prospective Payment Assessment 
Commission.
    (e) Report.--Not later than 2 years after the appointment of 
members, the Commission shall submit to the President, the Committee on 
Ways and Means of the House of Representatives, and the Committee on 
Finance of the Senate, a recommended national child support guideline 
and a final assessment of issues relating to such a proposed national 
child support guideline.
    (f) Termination.--The Commission shall terminate 6 months after the 
submission of the report described in subsection (e).

SEC. 352. SIMPLIFIED PROCESS FOR REVIEW AND ADJUSTMENT OF CHILD SUPPORT 
              ORDERS.

    (a) In General.--Section 466(a)(10) (42 U.S.C. 666(a)(10)) is 
amended to read as follows:
            ``(10) Procedures for modification of support orders.--
                    ``(A)(i) Procedures under which--
                            ``(I) every 3 years, at the request of 
                        either parent subject to a child support order, 
                        the State shall review and, as appropriate, 
                        adjust the order in accordance with the 
                        guidelines established under section 467(a) if 
                        the amount of the child support award under the 
                        order differs from the amount that would be 
                        awarded in accordance with such guidelines, 
                        without a requirement for any other change in 
                        circumstances; and
                            ``(II) upon request at any time of either 
                        parent subject to a child support order, the 
                        State shall review and, as appropriate, adjust 
                        the order in accordance with the guidelines 
                        established under section 467(a) based on a 
                        substantial change in the circumstances of 
                        either such parent.
                    ``(ii) Such procedures shall require both parents 
                subject to a child support order to be notified of 
                their rights and responsibilities provided for under 
                clause (i) at the time the order is issued and in the 
                annual information exchange form provided under 
                subparagraph (B).
                    ``(B) Procedures under which each child support 
                order issued or modified in the State after the 
                effective date of this subparagraph shall require the 
                parents subject to the order to provide each other with 
                a complete statement of their respective financial 
                condition annually on a form which shall be established 
                by the Secretary and provided by the State. The 
                Secretary shall establish regulations for the 
                enforcement of such exchange of information.''.

               Subtitle G--Enforcement of Support Orders

SEC. 361. FEDERAL INCOME TAX REFUND OFFSET.

    (a) Changed Order of Refund Distribution Under Internal Revenue 
Code.--Section 6402(c) of the Internal Revenue Code of 1986 is 
amended--
            (1) by striking ``The amount'' and inserting
            ``(1) In general.--The amount'';
            (2) by striking ``paid to the State. A reduction'' and 
        inserting ``paid to the State.
            ``(2) Priorities for offset.--A reduction'';
            (3) by striking ``has been assigned'' and inserting ``has 
        not been assigned'', and
            (4) by striking ``and shall be applied'' and all that 
        follows and inserting ``and shall thereafter be applied to 
        satisfy any past-due support that has been so assigned.''.
    (b) Elimination of Disparities in Treatment of Assigned and Non-
Assigned Arrearages.--(1) Section 464(a) (42 U.S.C. 664(a)) is 
amended--
            (A) by striking ``(a)'' and inserting ``(a) Offset 
        Authorized.--'';
            (B) in paragraph (1)--
                    (i) in the first sentence, by striking ``which has 
                been assigned to such State pursuant to section 
                402(a)(26) or section 471(a)(17)''; and
                    (ii) in the second sentence, by striking ``in 
                accordance with section 457 (b)(4) or (d)(3)'' and 
                inserting ``as provided in paragraph (2)'';
            (C) in paragraph (2), to read as follows:
            ``(2) The State agency shall distribute amounts paid by the 
        Secretary of the Treasury pursuant to paragraph (1)--
                    ``(A) in accordance with section 457 (a)(4) or 
                (d)(3), in the case of past-due support assigned to a 
                State pursuant to section 402(a)(26) or section 
                471(a)(17); and
                    ``(B) to or on behalf of the child to whom the 
                support was owed, in the case of past-due support not 
                so assigned.'';
            (D) in paragraph (3)--
                    (i) by striking ``or (2)'' each place it appears; 
                and
                    (ii) in subparagraph (B), by striking ``under 
                paragraph (2)'' and inserting ``on account of past-due 
                support described in paragraph (2)(B)''.
            (2) Section 464(b) (42 U.S.C. 664(b)) is amended--
                    (A) by striking ``(b)(1)'' and inserting ``(b) 
                Regulations.--''; and
                    (B) by striking paragraph (2).
            (3) Section 464(c) (42 U.S.C. 664(c)) is amended--
                    (A) by striking ``(c)(1) Except as provided in 
                paragraph (2), as'' and inserting ``(c) Definition.--
                As''; and
                    (B) by striking paragraphs (2) and (3).
    (c) Treatment of Lump-Sum Tax Refund Under AFDC.--
            (1) Exemption from lump-sum rule.--Section 402(a)(17) (42 
        U.S.C. 602(a)(17)) is amended by adding at the end the 
        following: ``but this paragraph shall not apply to income 
        received by a family that is attributable to a child support 
        obligation owed with respect to a member of the family and that 
        is paid to the family from amounts withheld from a Federal 
        income tax refund otherwise payable to the person owing such 
        obligation, to the extent that such income is placed in a 
        qualified asset account (as defined in section 406(j)) the 
        total amounts in which, after such placement, does not exceed 
        $10,000;''.
            (2) Qualified asset account defined.--Section 406 (42 
        U.S.C. 606), as amended by section 302(g)(2) of this Act, is 
        amended by adding at the end the following:
    ``(j)(1) The term `qualified asset account' means a mechanism 
approved by the State (such as individual retirement accounts, escrow 
accounts, or savings bonds) that allows savings of a family receiving 
aid to families with dependent children to be used for qualified 
distributions.
    ``(2) The term `qualified distribution' means a distribution from a 
qualified asset account for expenses directly related to 1 or more of 
the following purposes:
            ``(A) The attendance of a member of the family at any 
        education or training program.
            ``(B) The improvement of the employability (including self-
        employment) of a member of the family (such as through the 
        purchase of an automobile).
            ``(C) The purchase of a home for the family.
            ``(D) A change of the family residence.''.
    (d) Effective Date.--The amendments made by this section shall 
become effective October 1, 1999.

SEC. 362. INTERNAL REVENUE SERVICE COLLECTION OF ARREARS.

    (a) Amendment to Internal Revenue Code.--Section 6305(a) of the 
Internal Revenue Code of 1986 is amended--
            (1) in paragraph (1), by inserting ``except as provided in 
        paragraph (5)'' after ``collected'';
            (2) by striking ``and'' at the end of paragraph (3);
            (3) by striking the period at the end of paragraph (4) and 
        inserting a comma;
            (4) by adding after paragraph (4) the following new 
        paragraph:
            ``(5) no additional fee may be assessed for adjustments to 
        an amount previously certified pursuant to such section 452(b) 
        with respect to the same obligor.''; and
            (5) by striking ``Secretary of Health, Education, and 
        Welfare'' each place it appears and inserting ``Secretary of 
        Health and Human Services''.
    (b) Effective Date.--The amendments made by this section shall 
become effective October 1, 1997.

SEC. 363. AUTHORITY TO COLLECT SUPPORT FROM FEDERAL EMPLOYEES.

    (a) Consolidation and Streamlining of Authorities.--
            (1) Section 459 (42 U.S.C. 659) is amended in the caption 
        by inserting ``income withholding,'' before ``garnishment''.
            (2) Section 459(a) (42 U.S.C. 659(a)) is amended--
                    (A) by striking ``(a)'' and inserting ``(a) Consent 
                To Support Enforcement.--
                    (B) by striking ``section 207'' and inserting 
                ``section 207 of this Act and 38 U.S.C. 5301''; and
                    (C) by striking all that follows ``a private 
                person,'' and inserting ``to withholding in accordance 
                with State law pursuant to subsections (a)(1) and (b) 
                of section 466 and regulations of the Secretary 
                thereunder, and to any other legal process brought, by 
                a State agency administering a program under this part 
                or by an individual obligee, to enforce the legal 
                obligation of such individual to provide child support 
                or alimony.''.
            (3) Section 459(b) (42 U.S.C. 659(b)) is amended to read as 
        follows:
    ``(b) Consent to Requirements Applicable to Private Person.--Except 
as otherwise provided herein, each entity specified in subsection (a) 
shall be subject, with respect to notice to withhold income pursuant to 
subsection (a)(1) or (b) of section 466, or to any other order or 
process to enforce support obligations against an individual (if such 
order or process contains or is accompanied by sufficient data to 
permit prompt identification of the individual and the moneys 
involved), to the same requirements as would apply if such entity were 
a private person.''.
            (4) Section 459(c) (42 U.S.C. 659(c)) is redesignated and 
        relocated as paragraph (2) of subsection (f), and is amended--
                    (A) by striking ``responding to interrogatories 
                pursuant to requirements imposed by section 461(b)(3)'' 
                and inserting ``taking actions necessary to comply with 
                the requirements of subsection (A) with regard to any 
                individual''; and
                    (B) by striking ``any of his duties'' and all that 
                follows and inserting ``such duties.''.
            (5) Section 461 (42 U.S.C. 661) is amended by striking 
        subsection (b), and section 459 (42 U.S.C. 659) is amended by 
        inserting after subsection (b) (as added by paragraph (3) of 
        this subsection) the following:
    ``(c) Designation of Agent; Response to Notice or Process.--(1) The 
head of each agency subject to the requirements of this section shall--
            ``(A) designate an agent or agents to receive orders and 
        accept service of process; and
            ``(B) publish (i) in the appendix of such regulations, (ii) 
        in each subsequent republication of such regulations, and (iii) 
        annually in the Federal Register, the designation of such agent 
        or agents, identified by title of position, mailing address, 
        and telephone number.''.
            (6) Section 459 (42 U.S.C. 659) is amended by striking 
        subsection (d) and by inserting after subsection (c)(1) (as 
        added by paragraph (5) of this subsection) the following:
    ``(2) Whenever an agent designated pursuant to paragraph (1) 
receives notice pursuant to subsection (a)(1) or (b) of section 466, or 
is effectively served with any order, process, or interrogatories, with 
respect to an individual's child support or alimony payment 
obligations, such agent shall--
            ``(A) as soon as possible (but not later than fifteen days) 
        thereafter, send written notice of such notice or service 
        (together with a copy thereof) to such individual at his duty 
        station or last-known home address;
            ``(B) within 30 days (or such longer period as may be 
        prescribed by applicable State law) after receipt of a notice 
        pursuant to subsection (a)(1) or (b) of section 466, comply 
        with all applicable provisions of such section 466; and
            ``(C) within 30 days (or such longer period as may be 
        prescribed by applicable State law) after effective service of 
        any other such order, process, or interrogatories, respond 
        thereto.''.
            (7) Section 461 (42 U.S.C. 661) is amended by striking 
        subsection (c), and section 459 (42 U.S.C. 659) is amended by 
        inserting after subsection (c) (as added by paragraph (5) and 
        amended by paragraph (6) of this subsection) the following:
    ``(d) Priority of Claims.--In the event that a governmental entity 
receives notice or is served with process, as provided in this section, 
concerning amounts owed by an individual to more than one person--
            ``(1) support collection under section 466(b) must be given 
        priority over any other process, as provided in section 
        466(b)(7);
            ``(2) allocation of moneys due or payable to an individual 
        among claimants under section 466(b) shall be governed by the 
        provisions of such section 466(b) and regulations thereunder; 
        and
            ``(3) such moneys as remain after compliance with 
        subparagraphs (A) and (B) shall be available to satisfy any 
        other such processes on a first-come, first-served basis, with 
        any such process being satisfied out of such moneys as remain 
        after the satisfaction of all such processes which have been 
        previously served.''.
            (8) Section 459(e) (42 U.S.C. 659(e)) is amended by 
        striking ``(e)'' and inserting the following:
    ``(e) No Requirement to Vary Pay Cycles.--''.
            (9) Section 459(f) (42 U.S.C. 659(f)) is amended by 
        striking ``(f)'' and inserting the following:
    ``(f) Relief From Liability.--(1)''.
            (10) Section 461(a) (42 U.S.C. 661(a)) is redesignated and 
        relocated as section 459(g), and is amended--
            (A) by striking ``(g)'' and inserting the following:
    ``(g) Regulations.--''; and
            (B) by striking ``section 459'' and inserting ``this 
        section''.
            (11) Section 462 (42 U.S.C. 662) is amended by striking 
        subsection (f), and section 459 (42 U.S.C. 659) is amended by 
        inserting the following after subsection (g) (as added by 
        paragraph (10) of this subsection):
    ``(h) Moneys Subject to Process.--(1) Subject to subsection (i), 
moneys paid or payable to an individual which are considered to be 
based upon remuneration for employment, for purposes of this section--
            ``(A) consist of--
                    ``(i) compensation paid or payable for personal 
                services of such individual, whether such compensation 
                is denominated as wages, salary, commission, bonus, 
                pay, allowances, or otherwise (including severance pay, 
                sick pay, and incentive pay);
                    ``(ii) periodic benefits (including a periodic 
                benefit as defined in section 228(h)(3)) or other 
                payments--
                            ``(I) under the insurance system 
                        established by title II;
                            ``(II) under any other system or fund 
                        established by the United States which provides 
                        for the payment of pensions, retirement or 
                        retired pay, annuities, dependents' or 
                        survivors' benefits, or similar amounts payable 
                        on account of personal services performed by 
                        the individual or any other individual;
                            ``(III) as compensation for death under any 
                        Federal program;
                            ``(IV) under any Federal program 
                        established to provide `black lung' benefits; 
                        or
                            ``(V) by the Secretary of Veterans Affairs 
                        as pension, or as compensation for a service-
                        connected disability or death (except any 
                        compensation paid by such Secretary to a former 
                        member of the Armed Forces who is in receipt of 
                        retired or retainer pay if such former member 
                        has waived a portion of his retired pay in 
                        order to receive such compensation); and
                    ``(iii) worker's compensation benefits paid under 
                Federal or State law; but
            ``(B) do not include any payment--
                    ``(i) by way of reimbursement or otherwise, to 
                defray expenses incurred by such individual in carrying 
                out duties associated with his employment; or
                    ``(ii) as allowances for members of the uniformed 
                services payable pursuant to chapter 7 of title 37, 
                United States Code, as prescribed by the Secretaries 
                concerned (defined by section 101(5) of such title) as 
                necessary for the efficient performance of duty.''.
            (12) Section 462(g) (42 U.S.C. 662(g)) is redesignated and 
        relocated as section 459(i) (42 U.S.C. 659(i)).
            (13)(A) Section 462 (42 U.S.C. 662) is amended--
                    (i) in subsection (e)(1), by redesignating 
                subparagraphs (A), (B), and (C) as clauses (i), (ii), 
                and (iii); and
                    (ii) in subsection (e), by redesignating paragraphs 
                (1) and (2) as subparagraphs (A) and (B).
            (B) Section 459 (42 U.S.C. 659) is amended by adding at the 
        end the following:
    ``(j) Definitions.--For purposes of this section--''.
            (C) Subsections (a) through (e) of section 462 (42 U.S.C. 
        662), as amended by subparagraph (A) of this paragraph, are 
        relocated and redesignated as paragraphs (1) through (4), 
        respectively of section 459(j) (as added by subparagraph (B) of 
        this paragraph, (42 U.S.C. 659(j)), and the left margin of each 
        of such paragraphs (1) through (4) is indented 2 ems to the 
        right of the left margin of subsection (i) (as added by 
        paragraph (12) of this subsection).
    (b) Conforming Amendments.--
            (1) To part d of title iv.--Sections 461 and 462 (42 U.S.C. 
        661), as amended by subsection (a) of this section, are 
        repealed.
            (2) To title 5, united states code.--Section 5520a of title 
        5, United States Code, is amended, in subsections (h)(2) and 
        (i), by striking ``sections 459, 461, and 462 of the Social 
        Security Act (42 U.S.C. 659, 661, and 662)'' and inserting 
        ``section 459 of the Social Security Act (42 U.S.C. 659)''.
    (c) Military Retired and Retainer Pay.--(1) Definition of Court.--
Section 1408(a)(1) of title 10, United States Code, is amended--
            (A) by striking ``and'' at the end of subparagraph (B);
            (B) by striking the period at the end of subparagraph (C) 
        and inserting ``; and''; and
            (C) by adding after subparagraph (C) the following new 
        paragraph:
            ``(D) any administrative or judicial tribunal of a State 
        competent to enter orders for support or maintenance (including 
        a State agency administering a State program under part D of 
        title IV of the Social Security Act).'';
    (2) Definition of Court Order.--Section 1408(a)(2) of such title is 
amended by inserting ``or a court order for the payment of child 
support not included in or accompanied by such a decree of 
settlement,'' before ``which--''.
    (3) Public Payee.--Section 1408(d) of such title is amended--
            (A) in the heading, by striking ``to spouse'' and inserting 
        ``to (or for benefit of)''; and
            (B) in paragraph (1), in the first sentence, by inserting 
        ``(or for the benefit of such spouse or former spouse to a 
        State central collections unit or other public payee designated 
        by a State, in accordance with part D of title IV of the Social 
        Security Act, as directed by court order, or as otherwise 
        directed in accordance with such part D)'' before ``in an 
        amount sufficient''.
    (4) Relationship to Part D of Title IV.--Section 1408 of such title 
is amended by adding at the end the following new subsection:
    ``(j) Relationship to Other Laws.--In any case involving a child 
support order against a member who has never been married to the other 
parent of the child, the provisions of this section shall not apply, 
and the case shall be subject to the provisions of section 459 of the 
Social Security Act.''.
    (d) Effective Date.--The amendments made by this section shall 
become effective 6 months after the date of the enactment of this Act.

SEC. 364. ENFORCEMENT OF CHILD SUPPORT OBLIGATIONS OF MEMBERS OF THE 
              ARMED FORCES.

    (a) Availability of Locator Information.--
            (1) Maintenance of address information.--The Secretary of 
        Defense shall establish a centralized personnel locator service 
        that includes the address of each member of the Armed Forces 
        under the jurisdiction of the Secretary. Upon request of the 
        Secretary of Transportation, addresses for members of the Coast 
        Guard shall be included in the centralized personnel locator 
        service.
            (2) Type of address.--
                    (A) Residential address.--Except as provided in 
                subparagraph (B), the address for a member of the Armed 
                Forces shown in the locator service shall be the 
                residential address of that member.
                    (B) Duty address.--The address for a member of the 
                Armed Forces shown in the locator service shall be the 
                duty address of that member in the case of a member--
                    (i) who is permanently assigned overseas, to a 
                vessel, or to a routinely deployable unit; or
                    (ii) with respect to whom the Secretary concerned 
                makes a determination that the member's residential 
                address should not be disclosed due to national 
                security or safety concerns.
            (3) Updating of locator information.--Within 30 days after 
        a member listed in the locator service establishes a new 
        residential address (or a new duty address, in the case of a 
        member covered by paragraph (2)(B)), the Secretary concerned 
        shall update the locator service to indicate the new address of 
        the member.
            (4) Availability of information.--The Secretary of Defense 
        shall make information regarding the address of a member of the 
        Armed Forces listed in the locator service available, on 
        request, to the Federal Parent Locator Service.
    (b) Facilitating Granting of Leave for Attendance at Hearings.--
            (1) Regulations.--The Secretary of each military 
        department, and the Secretary of Transportation with respect to 
        the Coast Guard when it is not operating as a service in the 
        Navy, shall prescribe regulations to facilitate the granting of 
        leave to a member of the Armed Forces under the jurisdiction of 
        that Secretary in a case in which--
                    (A) the leave is needed for the member to attend a 
                hearing described in paragraph (2);
                    (B) the member is not serving in or with a unit 
                deployed in a contingency operation (as defined in 
                section 101 of title 10, United States Code); and
                    (C) the exigencies of military service (as 
                determined by the Secretary concerned) do not otherwise 
                require that such leave not be granted
            (2) Covered hearings.--Paragraph (1) applies to a hearing 
        that is conducted by a court or pursuant to an administrative 
        process established under State law, in connection with a civil 
        action--
                    (A) to determine whether a member of the Armed 
                Forces is a natural parent of a child; or
                    (B) to determine an obligation of a member of the 
                Armed Forces to provide child support.
            (3) Definitions.--for purposes of this subsection;
                    (A) The term ``court'' has the meaning given that 
                term in section 1408(a) of title 10, United States 
                Code.
                    (B) The term ``child support'' has the meaning 
                given such term in section 462 of the Social Security 
                Act (42 U.S.C. 662).
    (c) Payment of Military Retired Pay in Compliance With Child 
Support Orders.--
            (1) Date of certification of court order.--Section 1408 of 
        title 10, United States Code, is amended--
                    (A) by redesignating subsection (i) as subsection 
                (j); and
                    (B) by inserting after subsection (h) the following 
                new subsection (i):
    ``(i) Certification Date.--It is not necessary that the date of a 
certification of the authenticity or completeness of a copy of a court 
order or an order of an administrative process established under State 
law for child support received by the Secretary concerned for the 
purposes of this section be recent in relation to the date of receipt 
by the Secretary.''.
            (2) Payments consistent with assignments of rights to 
        states.--Section 1408(d)(1) of such title is amended by 
        inserting after the first sentence the following: ``In the case 
        of a spouse or former spouse who, pursuant to section 
        402(a)(26) of the Social Security Act (42 U.S.C. 602(26)), 
        assigns to a State the rights of the spouse or former spouse to 
        receive support, the Secretary concerned may make the child 
        support payments referred to in the preceding sentence to that 
        State in amounts consistent with that assignment of rights.''.
            (3) Arrearages owed by members of the uniformed services.--
        Section 1408(d) of such title is amended by adding at the end 
        the following new paragraph:
    ``(6) In the case of a court order or an order of an administrative 
process established under State law for which effective service is made 
on the Secretary concerned on or after the date of the enactment of 
this paragraph and which provides for payments from the disposable 
retired pay of a member to satisfy the amount of child support set 
forth in the order, the authority provided in paragraph (1) to make 
payments from the disposable retired pay of a member to satisy the 
amount of child support set forth in a court or an order of an 
administrative process established under State law shall apply to 
payment of any amount of child support arrearages set forth in that 
order as well as to amounts of child support that currently become 
due.''.

SEC. 365. MOTOR VEHICLE LIENS.

    Section 466(a)(4) (42 U.S.C. 666(a)(4)) is amended--
            (1) by striking ``(4) Procedures'' and inserting the 
        following:
            ``(4) Liens.--
                    ``(A) In general.--Procedures''; and
            (2) by adding at the end the following new subparagraph:
                    ``(B) Motor vehicle liens.--Procedures for placing 
                liens for arrears of child support on motor vehicle 
                titles of individuals owing such arrears equal to or 
                exceeding two months of support, under which--
                            ``(i) any person owed such arrears may 
                        place such a lien;
                            ``(ii) the State agency administering the 
                        program under this part, shall systematically 
                        place such liens;
                            ``(iii) expedited methods are provided 
                        for--
                                    ``(I) ascertaining the amount of 
                                arrears;
                                    ``(II) affording the person owing 
                                the arrears or other titleholder to 
                                contest the amount of arrears or to 
                                obtain a release upon fulfilling the 
                                support obligation;
                            ``(iv) such a lien has precedence over all 
                        other encumbrances on a vehicle title other 
                        than a purchase money security interest; and
                            ``(v) the individual or State agency owed 
                        the arrears may execute on, seize, and sell the 
                        property in accordance with State law.''.

SEC. 366. VOIDING OF FRAUDULENT TRANSFERS.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 301(a), 
328(a), and 331 of this Act, is amended by adding at the end the 
following new paragraph:
            ``(15) Fraudulent transfers.--Procedures under which--
                    ``(A) the State has in effect--
                            ``(i) the Uniform Fraudulent Conveyance Act 
                        of 1981,
                            ``(ii) the Uniform Fraudulent Transfer Act 
                        of 1984, or
                            ``(iii) another law, specifying indicia of 
                        fraud which create a prima facie case that a 
                        debtor transferred income or property to avoid 
                        payment to a child support creditor, which the 
                        Secretary finds affords comparable rights to 
                        child support creditors; and
                    ``(B) in any case in which the State knows of a 
                transfer by a child support debtor with respect to 
                which such a prima facie case is established, the State 
                must--
                            ``(i) seek to void such transfer; or
                            ``(ii) obtain a settlement in the best 
                        interests of the child support creditor.''.

SEC. 367. STATE LAW AUTHORIZING SUSPENSION OF LICENSES.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 301(a), 
328(a), 331, and 166 of this Act, is amended by adding at the end the 
following new paragraph:
            ``(16) Authority to withhold or suspend licenses.--
        Procedures under which the State has (and uses in appropriate 
        cases) authority (subject to appropriate due process 
        safeguards) to withhold or suspend, or to restrict the use of 
        driver's licenses, professional and occupational licenses, and 
        recreational licenses of individuals owing overdue child 
        support or failing, after receiving appropriate notice, to 
        comply with subpoenas or warrants relating to paternity or 
        child support proceedings.''.

SEC. 368. REPORTING ARREARAGES TO CREDIT BUREAUS.

    Section 466(a)(7) (42 U.S.C. 666(a)(7)) is amended to read as 
follows:
            ``(7) Reporting arrearages to credit bureaus.--(A) 
        Procedures (subject to safeguards pursuant to subparagraph (B)) 
        requiring the State to report periodically to consumer 
        reporting agencies (as defined in section 603(f) of the Fair 
        Credit Reporting Act (15 U.S.C. 1681a(f)) the name of any 
        absent parent who is delinquent by 90 days or more in the 
        payment of support, and the amount of overdue support owed by 
        such parent.
            ``(B) Procedures ensuring that, in carrying out 
        subparagraph (A), information with respect to an absent parent 
        is reported--
                    ``(i) only after such parent has been afforded all 
                due process required under State law, including notice 
                and a reasonable opportunity to contest the accuracy of 
                such information; and
                    ``(ii) only to an entity that has furnished 
                evidence satisfactory to the State that the entity is a 
                consumer reporting agency.''.

SEC. 389. EXTENDED STATUTE OF LIMITATION FOR COLLECTION OF ARREARAGES.

    (a) Amendments.--Section 466(a)(9) (42 U.S.C. 666(a)(9)) is 
amended--
            (1) by striking ``(9) Procedures'' and inserting the 
        following:
            ``(9) Legal treatment of arrears.--
                    ``(A) Finality.--Procedures'';
            (2) by redesignating subparagraphs (A), (B), and (C) as 
        clauses (i), (ii), and (iii), respectively, and by indenting 
        each of such clauses 2 additional ems to the right; and
            (3) by adding after and below subparagraph (A), as 
        redesignated, the following new subparagraph:
                    ``(B) Statute of limitations.--Procedures under 
                which the statute of limitations on any arrearages of 
                child support extends at least until the child owed 
                such support is 30 years of age.''.
    (b) Application of Requirement.--The amendment made by this section 
shall not be read to require any State law to revive any payment 
obligation which had lapsed prior to the effective date of such State 
law.

SEC. 370. CHARGES FOR ARREARAGES.

    (A) State Law Requirement.--Section 466(a) (42 U.S.C. 666(a)), as 
amended by section 301(a), 328(a), 331, 366, and 367 of this Act, is 
amended by adding at the end the following new paragraph:
            ``(17) Charges for arrearages.--Procedures providing for 
        the calculation and collection of interest or penalties for 
        arrearages of child support, and for distribution of such 
        interest or penalties collected for the benefit of the child 
        (except where the right to support has been assigned to the 
        State).''.
    (b) Regulations.--The Secretary of Health and Human Services shall 
establish by regulation a rule to resolve choice of law conflicts 
arising in the implementation of the amendment made by subsection (a).
    (c) Conforming Amendment.--Section 454(21) (42 U.S.C. 654(21)) is 
repealed.
    (d) Effective Date.--The amendments made by this section shall be 
effective with respect to arrearages accruing on or after October 1, 
1998.

SEC. 371. DENIAL OF PASSPORTS FOR NONPAYMENT OF CHILD SUPPORT.

    (a) HHS Certification Procedure.--
            (1) Secretarial responsibility.--Section 452 (42 U.S.C. 
        652), as amended by sections 315(a)(3) and 317 of this Act, is 
        amended by adding at the end the following new subsection:
    ``(l) Certifications for Purposes of Passport Restrictions.--
            ``(1) In general.--Where the Secretary receives a 
        certification by a State agency in accordance with the 
        requirements of section 454(28) that an individual owes 
        arrearages of child support in an amount exceeding $5,000 or in 
        an amount exceeding 24 months' worth of child support, the 
        Secretary shall transmit such certification to the Secretary of 
        State for action (with respect to denial, revocation, or 
        limitation of passports) pursuant to section 171(b) of this 
        Act.
            ``(2) Limit on liability.--The Secretary shall not be 
        liable to an individual for any action with respect to a 
        certification by a State agency under this section.''.
            (2) State cse agency responsibility.--Section 454 (42 
        U.S.C. 654), as amended by sections 304(a), 314(b), and 322(a) 
        of this Act, is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (26);
                    (B) by striking the period at the end of paragraph 
                (27) and inserting ``; and''; and
                    (C) by adding after paragraph (27) the following 
                new paragraph:
            ``(28) provide that the State agency will have in effect a 
        procedure (which may be combined with the procedure for tax 
        refund offset under section 464) for certifying to the 
        Secretary, for purposes of the procedure under section 452(l) 
        (concerning denial of passports) determinations that 
        individuals owe arrearages of child support in an amount 
        exceeding $5,000 or in an amount exceeding 24 months' worth of 
        child support, under which procedure--
                    ``(A) each individual concerned is afforded notice 
                of such determination and the consequences thereof, and 
                an opportunity to contest the determination; and
                    ``(B) the certification by the State agency is 
                furnished to the Secretary in such format, and 
                accompanied by such supporting documentation, as the 
                Secretary may require.''.
    (b) State Department Procedure for Denial of Passports.--
            (1) In general.--The Secretary of State, upon certification 
        by the Secretary of Health and Human Services, in accordance 
        with section 452(l) of the Social Security Act, that an 
        individual owes arrearages of child support in excess of 
        $5,000, shall refuse to issue a passport to such individual, 
        and may revoke, restrict, or limit a passport issued previously 
        to such individual.
            (2) Limit on liability.--The Secretary of State shall not 
        be liable to an individual for any action with respect to a 
        certification by a State agency under this section.
    (c) Effective Date.--This section and the amendments made by this 
section shall become effective October 1, 1996.

SEC. 372. INTERNATIONAL CHILD SUPPORT ENFORCEMENT.

    (A) Sense of the Congress That the United States Should Ratify the 
United Nations Convention of 1956.--It is the sense of the Congress 
that the United States should ratify the United Nations Convention of 
1956.
    (b) Treatment of International Child Support Cases as Interstate 
Cases.--Section 454 (42 U.S.C. 654), as amended by sections 304(a), 
314(b), 322(a), and 371(a)(2) of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (27);
            (2) by striking the period at the end of paragraph (28) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (28) the following:
            ``(29) provide that the State must treat international 
        child support cases in the same manner as the State treats 
        interstate child support cases.''.

                      Subtitle H--Medical Support

SEC. 381. TECHNICAL CORRECTION TO ERISA DEFINITION OF MEDICAL CHILD 
              SUPPORT ORDER.

    (a) General.--Section 609(a)(2)(B) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1169(a)(2)(B)) is amended--
            (1) by striking ``issued by a court of competent 
        jurisdiction'';
            (2) by striking the period at the end of clause (ii) and 
        inserting a comma; and
            (3) by adding, after and below clause (ii), the following: 
        ``if such judgment, decree, or order (I) is issued by a court 
        of competent jurisdiction or (II) is issued by an 
        administrative adjudicator and has the force and effect of law 
        under applicable State law.''.
    (b) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        take effect on the date of the enactment of this Act.
            (2) Plan amendments not required until january 1, 1996.--
        Any amendment to a plan required to be made by an amendment 
        made by this section shall not be required to be made before 
        the first plan year beginning on or after January 1, 1996, if--
                    (A) during the period after the date before the 
                date of the enactment of this Act and before such first 
                plan year, the plan is operated in accordance with the 
                requirements of the amendments made by this section, 
                and
                    (B) such plan amendment applies retro-actively to 
                the period after the date before the date of the 
                enactment of this Act and before such first plan year.
        A plan shall not be treated as failing to be operated in 
        accordance with the provisions of the plan merely because it 
        operates in accordance with this paragraph.

                    Subtitle I--Effect of Enactment

SEC. 391. EFFECTIVE DATES.

    (A) In General.--Except as otherwise specifically provided (but 
subject to subsections (b) and (c))--
            (1) provisions of this title requiring enactment or 
        amendment of State laws under section 466 of the Social 
        Security Act, or revision of State plans under section 454 of 
        such Act, shall be effective with respect to periods beginning 
        on and after October 1, 1996; and
            (2) all other provisions of this title shall become 
        effective upon enactment.
    (b) Grace Period for State Law Changes.--The provisions of this 
title shall become effective with respect to a State on the later of--
            (1) the date specified in this title, or
            (2) the effective date of laws enacted by the legislature 
        of such State implementing such provisions, but in no event 
        later than the first day of the first calender quarter 
        beginning after the close of the first regular session of the 
        State legislature that begins after the date of 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.
    (c) Grace Period for State Constitutional Amendment.--A State shall 
not be found out of compliance with any requirement enacted by this 
title if it is unable to comply without amending the State constitution 
until the earlier of--
            (1) the date one year after the effective date of the 
        necessary State constitutional amendment, or
            (2) the date five years after enactment of this title.

SEC. 392. SEVERABILITY.

    If any provision of this title or the application thereof to any 
person or circumstance is held invalid, the invalidity shall not affect 
other provisions or applications of this title which can be given 
effect without regard to the invalid provision or application, and to 
this end the provisions of this title shall be severable.

  TITLE IV--REAUTHORIZATION OF CHILD CARE AND DEVELOPMENT BLOCK GRANT

SEC. 431. REAUTHORIZATION OF CHILD CARE AND DEVELOPMENT BLOCK GRANT.

    Section 658B of the Child Care and Development Block Grant Act of 
1990 (42 U.S.C. 9858) is amended to read as follows:

``SEC. 658B. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this 
subchapter--
            ``(1) such sums as may be necessary for fiscal year 1995;
            ``(2) $1,000,000,000 for fiscal year 1996;
            ``(3) $1,500,000,000 for fiscal year 1997;
            ``(4) $2,000,000,000 for fiscal year 1998;
            ``(5) $2,500,000,000 for fiscal year 1999;
            ``(6) $3,000,000,000 for fiscal year 2000; and
            ``(7) $3,500,000,000 for fiscal year 2001.''.

            TITLE V--AMENDMENTS TO THE INTERNAL REVENUE CODE

SEC. 501. INCREASE IN TOP MARGINAL RATE UNDER SECTION 11.

    (a) In General.--The following provisions of the Internal Revenue 
Code of 1986 are amended by striking ``35'' and inserting ``36.25'':
            (1) Section 11(b)(1).
            (2) Section 11(b)(2).
            (3) Section 1201(a).
            (4) Paragraphs (1) and (2) of section 1445(e)
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning on or after October 1, 1996, except 
that the amendment made by subsection (a)(4) shall take effect on 
October 1, 1996.

                        TITLE VI--EFFECTIVE DATE

SEC. 601. EFFECTIVE DATE.

    Except as otherwise provided in this Act, this Act and the 
amendments made by this Act shall take effect on October 1, 1996.
            Amend the title so as to read: ``A bill to promote self-
        sufficiency and stability among families receiving aid to 
        families with dependent children by increasing employment 
        opportunities; to increase State flexibility in operating a Job 
        Opportunities and Basic skills Training Program; to improve the 
        interstate enforcement of child support and parentage court 
        orders; and for other purposes.''.
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