I

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. JACKSONLEE, 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. VELA ́ZQUEZ,

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
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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.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Family Stability and

5 Work Act of 1995’’.

6 SEC. 2. REFERENCE TO SOCIAL SECURITY ACT.

7 Except as otherwise specifically provided, wherever in

8 this Act an amendment is expressed in terms of an amend9 ment to or repeal of a section or other provision, the ref10 erence shall be considered to be made to that section or

11 other provision of the Social Security Act.

12 SEC. 3. TABLE OF CONTENTS.

13 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.
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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
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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.
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1 TITLE I—IMPROVING AID TO

2 FAMILIES WITH DEPENDENT

3 CHILDREN

4 SEC. 101. INCREASE IN STANDARD EARNED INCOME DIS5 REGARD.

6 Clause (ii) of section 402(a)(8)(A) (42 U.S.C.

7 602(a)(8)(A)(ii)) is amended by striking ‘‘$90’’ and in8 serting ‘‘$170’’.

9 SEC. 102. INCREASE IN STATE FLEXIBILITY REGARDING RE10 CIPIENT PARTICIPATION IN JOBS PROGRAM.

11 (a) CHANGES IN STATE PLAN REQUIREMENTS.—

12 Paragraph (19) of section 402(a) (42 U.S.C. 602(a)(19))

13 is amended to read as follows:

14 ‘‘(19) provide—

15 ‘‘(A) that the State has in effect and oper16 ation a job opportunities and basic skills train17 ing program which meets the requirements of

18 part F;

19 ‘‘(B) that, not later than 30 days after ap20 proving the application of a family for aid

21 under the State plan approved under this part,

22 the State shall—

23 ‘‘(i) conduct an initial assessment of

24 the self-sufficiency needs of the family that

25 includes an assessment of the family cir-
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1 cumstances, the educational, child care,

2 and other supportive services needs, and

3 the skills, prior work experience, and em4 ployability of each recipient;

5 ‘‘(ii) determine whether it would be

6 appropriate to require or permit any mem7 ber of the family to participate in the pro8 gram of the State under part F; and

9 ‘‘(iii) advise the family of the avail10 ability of child care assistance under sec11 tion 402(g) for participation in education,

12 training, and employment;

13 ‘‘(C) that—

14 ‘‘(i) the costs of attendance by a re15 cipient at an institution of higher edu16 cation (as defined in section 481(a) of the

17 Higher Education Act of 1965), or a

18 school or course of vocational or technical

19 training, shall not constitute federally re20 imbursable expenses for purposes of sec21 tion 403; and

22 ‘‘(ii) the costs of day care, transpor23 tation, and other services which are nec24 essary (as determined by the State agency)

25 for such attendance in accordance with
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1 section 402(g) are eligible for Federal re2 imbursement so long as the recipient is

3 making satisfactory progress in such insti4 tution, school, or course and such attend5 ance is consistent with the employment

6 goals in the recipient’s self-sufficiency plan

7 developed under part F;

8 ‘‘(D) that—

9 ‘‘(i) if an individual who is required

10 by the State to participate in the program

11 of the State under part F fails without

12 good cause to participate or refuses with13 out good cause to accept employment in

14 which such individual is able to engage

15 which is offered through the public employ16 ment offices of the State, or is otherwise

17 offered by an employer if the offer of such

18 employer is determined to be a bona fide

19 offer of employment—

20 ‘‘(I) the family of the individual

21 shall cease to be eligible for aid under

22 this part; unless

23 ‘‘(II) such individual is a member

24 of a family in which both parents are

25 living at home, and his or her spouse
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1 has not failed to comply under this

2 clause, in which case the needs of

3 such individual shall not be taken into

4 account in making the determination

5 with respect to his or her family

6 under paragraph (7) of this sub7 section;

8 ‘‘(ii) any sanction described in clause

9 (i) shall continue until the failure to com10 ply ceases;

11 ‘‘(iii) no sanction shall be imposed

12 under this subparagraph—

13 ‘‘(I) on the basis of the refusal of

14 an individual to accept any employ15 ment (including any employment of16 fered under the program), if the em17 ployment does not pay at least the

18 Federal minimum wage under section

19 6(a) of the Fair Labor Standards Act

20 of 1938; or

21 ‘‘(II) on the basis of the refusal

22 of an individual to participate in the

23 program or accept employment (in24 cluding any employment offered under

25 the program), if child care (or day
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1 care for any incapacitated individual

2 living in the same home as a depend3 ent child) is necessary for an individ4 ual to participate in the program or

5 accept employment, such care is not

6 available, and the State agency fails

7 to provide such care; and

8 ‘‘(H) the State agency may require a par9 ticipant in the program to accept a job only if

10 such agency assures that the family of such

11 participant will experience no net loss of cash

12 income resulting from acceptance of the job;

13 and any costs incurred by the State agency as

14 a result of this subparagraph shall be treated as

15 expenditures with respect to which section

16 403(a)(1) or 403(a)(2) applies;’’.

17 (b) CHANGE IN PAYMENT TO STATES.—Section

18 403(l) (42 U.S.C. 603(l)) is amended by striking para19 graph (2).

20 SEC. 103. ELIMINATION OF DIFFERENT TREATMENT OF 2-

21 PARENT FAMILIES.

22 (a) IN GENERAL.—Section 402(a) (42 U.S.C.

23 602(a)) is amended by striking paragraph (41).

24 (b) CONFORMING AMENDMENTS.—
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1 (1) Section 402(a)(38)(B) (42 U.S.C.

2 602(a)(38)(B)) is amended by striking ‘‘or in section

3 407(a)’’.

4 (2) Section 402(a) (42 U.S.C. 602(a)) is

5 amended by striking paragraph (42).

6 (3) Section 402(g)(1)(A)(ii) (42 U.S.C.

7 602(g)(1)(A)(ii)) is amended by striking ‘‘hours of,

8 or increased income from,’’ and inserting ‘‘income

9 from’’.

10 (4) Section 406(a)(1) (42 U.S.C. 606(a)(1)) is

11 amended by striking ‘‘who has been deprived’’ and

12 all that follows through ‘‘incapacity of a parent’’.

13 (5) Section 406(b)(1) (42 U.S.C. 606(b)(1)) is

14 amended by striking ‘‘and if such relative’’ and all

15 that follows through ‘‘section 407’’.

16 (6) Section 407 (42 U.S.C. 607) is hereby re17 pealed.

18 (7) Section 472(a) (42 U.S.C. 672(a)) is

19 amended by striking ‘‘or of section 407’’.

20 (8) Section 473(a)(2)(A)(i) (42 U.S.C.

21 672(a)(2)(A)(i)) is amended by striking ‘‘or section

22 407’’.

23 (9) Section 1115(b) (42 U.S.C. 1315(b)) is

24 amended by striking paragraph (5).
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1 (10) Section 1115 (42 U.S.C. 1315) is amended

2 by striking subsection (d).

3 (11) Section 1902(a)(10)(A)(i) (42 U.S.C.

4 1396a(a)(10)(A)(i)) is amended by striking

5 subclause (V) and by redesignating subclauses (VI)

6 and (VII) as subclauses (V) and (VI), respectively.

7 (12) Section 1905 (42 U.S.C. 1396d) is amend8 ed by striking subsection (m).

9 (13) Section 1905(n)(1) (42 U.S.C.

10 1396d(n)(1)) is amended—

11 (A) in subparagraph (A)—

12 (i) by striking ‘‘(or’’ and all that fol13 lows through ‘‘407)’’; and

14 (ii) by adding ‘‘or’’ at the end; and

15 (B) by striking subparagraph (B).

16 (14) Section 1925(a) (42 U.S.C. 1396r–6(a)) is

17 amended by striking ‘‘hours of, or income from,’’

18 and inserting ‘‘income from’’.

19 (15) Section 204(b)(2) of the Family Support

20 Act of 1988 (42 U.S.C. 681 note) is amended by

21 striking the semicolon and all that follows through

22 ‘‘1998’’.
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1 SEC. 104. EXTENSION OF TRANSITIONAL CHILD CARE

2 GUARANTEE.

3 Clause (iii) of section 402(g)(1)(A) (42 U.S.C.

4 602(g)(1)(A)(iii)) is amended to read as follows:

5 ‘‘(iii) A family shall only be eligible for child care pro6 vided under clause (ii)—

7 ‘‘(I) for a period of 24 months after the last

8 month for which the family received aid to families

9 with dependent children under this part; or

10 ‘‘(II) until the income of the family exceeds by

11 more than 200 percent the income official poverty

12 line (as defined by the Office of Management and

13 Budget, and revised annually in accordance with sec14 tion 673(2) of the Omnibus Budget Reconciliation

15 Act of 1981) applicable to a family of the size in16 volved;

17 whichever occurs first.’’.

18 SEC. 105. INCREASE IN FEDERAL MATCHING RATES FOR

19 CHILD CARE.

20 (a) AFDC AND TRANSITIONAL CHILD CARE.—

21 (1) INCREASE IN RATES FOR SEVERAL STATES

22 AND DISTRICT OF COLUMBIA.—Clause (i) of section

23 402(g)(3)(A) (42 U.S.C. 602(g)(3)(A)(i)) is amend24 ed by striking ‘‘1905(b)).’’ and inserting ‘‘1905(b)),

25 increased by 10 percentage points.’’.
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1 (2) INCREASE IN RATES FOR OTHER STATES.—

2 Clause (ii) of section 402(g)(3)(A) (42 U.S.C.

3 602(g)(3)(A)(ii)) is amended by striking ‘‘1118).’’

4 and inserting ‘‘1118), increased by 10 percentage

5 points.’’.

6 (b) AT-RISK CHILD CARE.—Subparagraph (A) of

7 section 403(n)(1) (42 U.S.C. 603(n)(1)(A)) is amended

8 by inserting ‘‘increased by 10 percentage points’’ before

9 ‘‘of the expenditures’’.

10 SEC. 106. INCREASE IN JOBS PROGRAM FUNDING.

11 Paragraph (3) of section 403(k) (42 U.S.C.

12 603(k)(3)) is amended—

13 (1) in subparagraph (E), by striking ‘‘and’’ at

14 the end;

15 (2) in subparagraph (F), by striking ‘‘and each

16 succeeding fiscal year,’’ and inserting a comma at

17 the end; and

18 (3) by inserting after subparagraph (F) the fol19 lowing:

20 ‘‘(G) $1,500,000,000 in the case of fiscal year

21 1997,

22 ‘‘(H) $1,900,000,000 in the case of fiscal year

23 1998,

24 ‘‘(I) $2,800,000,000 in the case of fiscal year

25 1999,
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1 ‘‘(J) $3,700,000,000 in the case of fiscal year

2 2000, and

3 ‘‘(K) $5,000,000,000 in the case of fiscal year

4 2001,’’.

5 SEC. 107. REQUIREMENT WITH RESPECT TO JOBS PRO6 GRAM PARTICIPATION RATE.

7 (a) REQUIREMENT.—Section 402 (42 U.S.C. 602) is

8 amended by inserting after subsection (c) the following:

9 ‘‘(d)(1) With respect to the program established by

10 a State under part F, the State shall achieve a participa11 tion rate for the following fiscal years of not less than the

12 following percentage:

‘‘Fiscal year: Percentage:

1997 ......................................................................................... 15

1998 ......................................................................................... 20

1999 ......................................................................................... 25

2000 ......................................................................................... 30

2001 ......................................................................................... 35

2002 ......................................................................................... 40

2003 or later ............................................................................ 50.

13 ‘‘(2) As used in this subsection, the term ‘participa14 tion rate’ means, with respect to a State and a fiscal year,

15 an amount equal to—

16 ‘‘(A) the average monthly number of individuals

17 who, during the fiscal year, participate in the State

18 program established under part F; divided by

19 ‘‘(B) the average monthly number of individuals

20 who, during the fiscal year, are adult recipients of

21 aid under the State plan approved under part A or
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1 participate in the State program established under

2 part F.

3 ‘‘(3) Each State that operates a program under part

4 F for a fiscal year shall submit to the Secretary a report

5 on the participation rate of the State for the fiscal year.

6 ‘‘(4)(A) If a State reports that the State has failed

7 to achieve the participation rate required by paragraph (1)

8 for the fiscal year, the Secretary may make recommenda9 tions for changes in the State program established under

10 part F. The State may elect to follow such recommenda11 tions, and shall demonstrate to the Secretary how the

12 State will achieve the required participation rates.

13 ‘‘(B) Notwithstanding subparagraph (A), if a State

14 fails to achieve the participation rate required by para15 graph (1) for 2 consecutive fiscal years, the Secretary may

16 require the State to make changes in the State program

17 established under part F.’’.

18 (b) CHANGE IN PAYMENT TO STATES.—Section

19 403(l) (42 U.S.C. 603(l)) is amended by striking para20 graphs (3) and (4).
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1 SEC. 108. INCREASE IN MATCHING RATES FOR STATES

2 WHOSE RECIPIENTS LEAVE AFDC FOR PAID

3 EMPLOYMENT.

4 (a) INCREASE IN JOBS MATCHING RATE.—Section

5 403(l) (42 U.S.C. 603(l)), as amended by section 102(b),

6 is amended by inserting after paragraph (1) the following:

7 ‘‘(2)(A) Notwithstanding paragraph (1), the Sec8 retary shall pay to a State, with respect to expenditures

9 made by the State that are described in paragraph

10 (1)(A)(ii)(II), an amount equal to the greater of 70 per11 cent or the Federal medical assistance percentage (as de12 fined in section 1118 in the case of any State to which

13 section 1108 applies, or as defined in section 1905(b) in

14 the case of any other State) increased by 10 percent if

15 the number of qualified families with respect to the State

16 for a fiscal year equals or exceeds the proportion specified

17 in subparagraph (B) for such year of the total number

18 of individuals participating in the State program estab19 lished under part F during such year.

20 ‘‘(B) The proportion specified in this subparagraph

21 is—

‘‘(i) 1 22 ⁄4 for fiscal year 1998;

‘‘(ii) 1 23 ⁄3 for fiscal year 1999;

‘‘(iii) 1 24 ⁄2 for fiscal year 2000, and for each fiscal

25 year thereafter.
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1 ‘‘(C) For purposes of subparagraph (A), the term

2 ‘qualified family’ means, with respect to a State for a fis3 cal year, a family—

4 ‘‘(i) that was receiving aid from the State under

5 this part during such year;

6 ‘‘(ii) a member of which ceased to participate in

7 the State program established under part F during

8 such year as the result of the employment of such

9 member in a job (other than a job provided under

10 the job creation and work experience program under

11 section 482(e)); and

12 ‘‘(iii) ceased to receive such aid as a result of

13 such employment.’’

14 (b) INCREASE IN TRANSITIONAL CHILD CARE

15 RATE.—Paragraph (3) of section 402(g) (42 U.S.C.

16 602(g)(3)) is amended by adding at the end the following:

17 ‘‘(C) Notwithstanding subparagraph (A), in the case

18 of amounts expended for child care pursuant to paragraph

19 (1)(A)(ii) by any State that satisfies the requirement in

20 section 403(l)(2)(A), the applicable rate for purposes of

21 section 403(a) shall be the percentage specified in sub22 paragraph (A) for such amounts, increased by 10 percent23 age points.’’.
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1 SEC. 109. INCREASE IN AT-RISK CHILD CARE FUNDING.

2 Subparagraph (B) of section 403(n)(2) (42 U.S.C.

3 603(n)(2)(B)) of the Social Security Act is amended—

4 (1) in clause (iv), by striking ‘‘and’’ at the end;

5 (2) in clause (v), by striking ‘‘1995, and for

6 each fiscal year thereafter.’’ and inserting ‘‘1995;’’;

7 and

8 (3) by adding at the end the following:

9 ‘‘(vi) $300,000,000 for fiscal year 1996;

10 ‘‘(vii) $800,000,000 for fiscal year 1997;

11 ‘‘(viii) $1,300,000,000 for fiscal year 1998;

12 ‘‘(ix) $1,800,000,000 for fiscal year 1999;

13 ‘‘(x) $2,300,000,000 for fiscal year 2000; and

14 ‘‘(xi) $2,800,000,000 for fiscal year 2001.’’.

15 SEC. 110. IMPROVEMENTS IN JOBS PROGRAM SELF-SUFFI16 CIENCY PLANNING AND CASE MANAGEMENT.

17 Section 482(b) (42 U.S.C. 682(b)) is amended—

18 (1) by amending the subsection heading to read

19 as follows:

20 ‘‘(b) SELF-SUFFICIENCY PLAN.—’’;

21 (2) by striking paragraph (1)(A), redesignating

22 paragraph (1)(B) as paragraph (1)(A), and adjust23 ing the placement and margins of paragraph (1)(A)

24 (as so redesignated) accordingly;

25 (3) in paragraph (1)(A) (as redesignated by

26 paragraph (2))—
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1 (A) by striking ‘‘such assessment,’’ and in2 serting ‘‘the initial assessment of self-suffi3 ciency under section 402(a)(19)(B),’’; and

4 (B) by striking ‘‘employability plan’’ each

5 place such term appears and inserting ‘‘self-suf6 ficiency plan’’;

7 (4) in paragraph (2)—

8 (A) by striking ‘‘initial assessment and re9 view and the development of the employability

10 plan’’ and inserting ‘‘initial assessment of self11 sufficiency and the development of the self-suf12 ficiency plan’’;

13 (B) by striking ‘‘the State agency may re14 quire’’ and inserting ‘‘the State agency shall re15 quire’’; and

16 (C) by striking ‘‘If the State agency exer17 cises the option under the preceding sentence,

18 the State agency must’’ and inserting ‘‘The

19 State agency must’’; and

20 (5) in paragraph (3)—

21 (A) by striking ‘‘may assign’’ and inserting

22 ‘‘shall assign’’; and

23 (B) by adding at the end the following:

24 ‘‘Case management services under this paragraph shall

25 continue for a period of not fewer than 90 days after a
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1 participant becomes employed, and, at the option of the

2 State, the State may extend such period to not more than

3 365 days.’’.

4 SEC. 111. CHANGE IN MANDATORY SERVICES AND ACTIVI5 TIES UNDER THE JOBS PROGRAM.

6 (a) MANDATORY AND PERMISSIBLE SERVICES AND

7 ACTIVITIES.—Subparagraph (A) of section 482(d)(1) (42

8 U.S.C. 682(d)(1)(A)) is amended to read as follows:

9 ‘‘(d) SERVICES AND ACTIVITIES UNDER THE PRO10 GRAM.—(1)(A) In carrying out the program, each State

11 shall make available a broad range of services and activi12 ties to aid in carrying out the purpose of this part. Such

13 services and activities—

14 ‘‘(i) shall include—

15 ‘‘(I) educational activities (as appropriate),

16 including high school or equivalent education

17 (combined with training as needed), basic and

18 remedial education to achieve a basic literacy

19 level, and education for individuals with limited

20 English proficiency;

21 ‘‘(II) job skills training;

22 ‘‘(III) job readiness activities to help pre23 pare participants for work;

24 ‘‘(IV) job development and job placement;
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1 ‘‘(V) a job creation and work experience

2 program as described in subsection (e); and

3 ‘‘(VI) group and individual job search as

4 described in subsection (f); and

5 ‘‘(ii) may include—

6 ‘‘(I) on-the-job training; and

7 ‘‘(II) any other work experience program

8 approved by the Secretary.’’.

9 (b) ELIMINATION OF REQUIREMENT WITH RESPECT

10 TO CERTAIN EDUCATIONAL ACTIVITIES.—Section 482(d)

11 (42 U.S.C. 682(d)) is amended—

12 (1) by striking paragraph (2); and

13 (2) by redesignating paragraph (3) as para14 graph (2).

15 SEC. 112. JOBS CREATION AND WORK EXPERIENCE PRO16 GRAM.

17 Section 482 (42 U.S.C. 682) is amended—

18 (1) by striking subsections (e) and (f);

19 (2) by redesignating subsections (g), (h), and (i) as

20 subsections (f), (g), and (h); and

21 (3) by inserting after subsection (d) the follow22 ing:

23 ‘‘(e) JOBS CREATION AND WORK EXPERIENCE PRO24 GRAM.—
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1 ‘‘(1) IN GENERAL.—In carrying out the pro2 gram, each State shall establish a jobs creation and

3 work experience program in accordance with this

4 subsection.

5 ‘‘(2) GENERAL REQUIREMENTS.—A jobs cre6 ation and work experience program is a program

7 that provides employment in the public sector or in

8 the private sector in accordance with the following

9 requirements:

10 ‘‘(A) PARTICIPATION.—A State shall re11 quire an individual to participate in the jobs

12 creation and work experience program if the in13 dividual—

14 ‘‘(i) is eligible to receive aid under the

15 State plan approved under part A;

16 ‘‘(ii) is prepared to commence employ17 ment, as determined under the self-suffi18 ciency plan developed for the individual

19 under subsection (b)(1)(A); and

20 ‘‘(iii) has demonstrated that the indi21 vidual is not otherwise able to obtain em22 ployment in the public or private sectors.

23 ‘‘(B) PERIODIC JOB SEARCH REQUIRED.—

24 As a continuing condition of eligibility to par25 ticipate in the jobs creation and work experi-
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1 ence program, each participant in the program

2 shall periodically engage in job search.

3 ‘‘(C) ENTRY-LEVEL POSITIONS.—

4 ‘‘(i) IN GENERAL.—Subject to clause

5 (ii), the jobs creation and work experience

6 program shall provide entry-level positions,

7 to the extent practicable.

8 ‘‘(ii) NO INFRINGEMENT ON PRO9 MOTIONAL OPPORTUNITIES.—A job shall

10 not be created in a promotional line that

11 will infringe in any way upon the pro12 motional opportunities of persons employed

13 in jobs not subsidized under this sub14 section.

15 ‘‘(D) MAXIMUM PERIOD OF SUBSIDIZED

16 EMPLOYMENT AT SAME POSITION.—The jobs

17 creation and work experience program shall not

18 permit an individual to remain in the program

19 for more than 24 months.

20 ‘‘(E) MINIMUM WAGE REQUIREMENT.—An

21 individual participating in the jobs creation and

22 work experience program may not be required

23 to accept any employment if the wage rate for

24 such employment does not equal or exceed the
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1 minimum wage rate then in effect under section

2 6 of the Fair Labor Standards Act of 1938.

3 ‘‘(3) WAGES TREATED AS EARNED INCOME.—

4 Wages paid under a program established under this

5 subsection shall be considered to be earned income

6 for purposes of any provision of law.

7 ‘‘(4) PRESERVATION OF ELIGIBILITY FOR

8 CHILD CARE ASSISTANCE AND MEDICAID BENE9 FITS.—Any individual who becomes ineligible to re10 ceive aid under a State plan approved under part A

11 by reason of income from employment provided

12 under a program established under this subsection

13 to the caretaker relative of the family of which the

14 individual is a member shall for purposes of eligi15 bility for child care benefits under section

16 402(g)(1)(A)(i) and for purposes of eligibility for

17 medical assistance under the State plan approved

18 under title XIX, be considered to be receiving such

19 aid for so long as the subsidized employment pro20 vided to the individual under this subsection contin21 ues.’’.

22 SEC. 113. PROVISIONS GENERALLY APPLICABLE TO THE

23 JOBS PROGRAM.

24 Section 484 (42 U.S.C. 684) is amended by striking

25 subsections (b), (c), and (d) and inserting the following:
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1 ‘‘(b)(1)(A) Funds provided for a program established

2 under section 482 may be used only for programs that

3 do not duplicate any employment activity otherwise avail4 able in the locality of the program.

5 ‘‘(B) Funds provided for a program established under

6 section 482 shall not be paid to a private entity to conduct

7 activities that are the same or substantially equivalent to

8 activities provided by a State in which the entity is located

9 or by an agency of local government with jurisdiction over

10 the locality in which the entity is located, unless the re11 quirements of paragraph (2) are met.

12 ‘‘(2)(A) An employer shall not displace an employee

13 or position, including partial displacement such as reduc14 tion in hours, wages, or employment benefits, as a result

15 of the use by the employer of a participant in a program

16 established under section 482.

17 ‘‘(B) No work assignment under a program estab18 lished under section 482 shall result in any infringement

19 of the promotional opportunities of any employed individ20 ual.

21 ‘‘(C)(i) A participant in a program established under

22 section 482(e) shall not perform any services or duties or

23 engage in activities that would otherwise be performed by

24 an employee as part of the assigned duties of the em25 ployee.
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1 ‘‘(ii) A participant in a program established under

2 section 482 shall not perform any services or duties or

3 engage in activities that—

4 ‘‘(I) will supplant the hiring of employed work5 ers; or

6 ‘‘(II) are services, duties or activities with re7 spect to which an individual has recall rights pursu8 ant to a collective bargaining agreement or applica9 ble personnel procedures.

10 ‘‘(iii) A participant in a program established under

11 section 482 shall not perform services or duties that have

12 been performed by or were assigned to any—

13 ‘‘(I) presently employed worker if the partici14 pant is in a program established under section

15 482(e);

16 ‘‘(II) employee who recently resigned or was

17 discharged;

18 ‘‘(III) employee who—

19 ‘‘(aa) is the subject of a reduction in force;

20 or

21 ‘‘(bb) has recall rights pursuant to a col22 lective bargaining agreement or applicable per23 sonnel procedures;

24 ‘‘(IV) employee who is on leave (terminal, tem25 porary, vacation, emergency, or sick); or
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1 ‘‘(V) employee who is on strike or is being

2 locked out.

3 ‘‘(c)(1) Sections 142(a), 143(a)(4), 143(a)(5), and

4 143(c)(2) of the Job Training Partnership Act shall apply

5 to employment provided through any program established

6 under section 482 of this Act.

7 ‘‘(2) Sections 130(f) and 176(f) of the National and

8 Community Service Act of 1990 shall apply to employment

9 provided through any program established under section

10 482 of this Act.

11 ‘‘(d)(1) A participant in a program established under

12 subsection (e) of section 482 may not be assigned to fill

13 any established unfilled position vacancy.

14 ‘‘(2)(A) A program established under section 482

15 may not be used to assist, promote, or deter union orga16 nizing.

17 ‘‘(B) A program established under section 482 may

18 not be used to impair existing contracts for services or

19 collective bargaining agreements.’’.

20 TITLE II—MAKING WORK PAY

21 SEC. 201. TRANSITIONAL MEDICAID BENEFITS.

22 (a) EXTENSION OF MEDICAID ENROLLMENT FOR

23 FORMER AFDC RECIPIENTS FOR 1 ADDITIONAL YEAR.—

24 (1) IN GENERAL.—Section 1925(b)(1) (42

25 U.S.C. 1396r–6(b)(1)) is amended by striking the
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1 period at the end and inserting the following: ‘‘, and

2 that the State shall offer to each such family the op3 tion of extending coverage under this subsection for

4 any of the first 2 succeeding 6-month periods, in the

5 same manner and under the same conditions as the

6 option of extending coverage under this subsection

7 for the first succeeding 6-month period.’’.

8 (2) CONFORMING AMENDMENTS.—Section

9 1925(b) (42 U.S.C. 1396r–6(b)) is amended—

10 (A) in the heading, by striking ‘‘EXTEN11 SION’’ and inserting ‘‘EXTENSIONS’’;

12 (B) in the heading of paragraph (1), by

13 striking ‘‘REQUIREMENT’’ and inserting ‘‘IN

14 GENERAL’’;

15 (C) in paragraph (2)(B)(ii)—

16 (i) in the heading, by striking ‘‘PE17 RIOD’’ and inserting ‘‘PERIODS’’, and

18 (ii) by striking ‘‘in the period’’ and in19 serting ‘‘in each of the 6-month periods’’;

20 (D) in paragraph (3)(A), by striking ‘‘the

21 6-month period’’ and inserting ‘‘any 6-month

22 period’’;

23 (E) in paragraph (4)(A), by striking ‘‘the

24 extension period’’ and inserting ‘‘any extension

25 period’’; and
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1 (F) in paragraph (5)(D)(i), by striking ‘‘is

2 a 3-month period’’ and all that follows and in3 serting the following: ‘‘is, with respect to a par4 ticular 6-month additional extension period pro5 vided under this subsection, a 3-month period

6 beginning with the first or fourth month of

7 such extension period.’’.

8 (b) IMPOSITION OF PREMIUM PERMITTED ONLY

9 DURING ADDITIONAL EXTENSION PERIODS.—

10 (1) IN GENERAL.—Section 1925(b)(5)(A) of

11 such Act (42 U.S.C. 1396r–6(b)(5)(A)) is amended

12 by striking ‘‘(D)(i)),’’ and inserting ‘‘(D)(i)) occur13 ring during the second or third additional extension

14 period provided under this subsection,’’.

15 (2) CONFORMING AMENDMENT.—Section

16 1925(b)(1) of such Act (42 U.S.C. 1396r–6(b)(1)),

17 as amended by subsection (a)(1), is amended by in18 serting after ‘‘same conditions’’ the following: ‘‘(ex19 cept as provided in paragraph (5)(A))’’.

20 (c) EXTENSION OF COVERAGE FOR LOW-INCOME

21 CHILDREN.—Section 1925(b) of such Act (42 U.S.C.

22 1396r–6(b)) is amended by adding at the end the follow23 ing new paragraph:

24 ‘‘(6) EXTENSION OF COVERAGE FOR LOW-IN25 COME CHILDREN.—
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1 ‘‘(A) IN GENERAL.—Notwithstanding any

2 other provision of this title, each State plan ap3 proved under this title shall provide that the

4 State shall offer (in the last month of the third

5 additional extension period provided under

6 paragraph (1)) to each eligible low-income child

7 who has received assistance pursuant to this

8 section during each of the 6-month periods de9 scribed in subsection (a) and paragraph (1) the

10 option of coverage under the State plan, in the

11 same manner and under the same conditions as

12 the option of extending coverage under para13 graph (1) for the second and third additional

14 extension periods provided under such para15 graph.

16 ‘‘(B) ELIGIBLE LOW-INCOME CHILD DE17 FINED.—In subparagraph (A), the term ‘eligi18 ble low-income child’ means an individual who

19 has not attained 18 years of age and whose

20 family income does not exceed 200 percent of

21 the official poverty line (as defined by the Of22 fice of Management and Budget, and revised

23 annually in accordance with section 673(2) of

24 the Omnibus Budget Reconciliation Act of
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1 1981) applicable to a family of the size in2 volved.’’.

3 (d) EFFECTIVE DATE.—The amendments made by

4 this section shall apply to calendar quarters beginning on

5 or after October 1, 1996, without regard to whether or

6 not final regulations to carry out such amendments have

7 been promulgated by such date.

8 SEC. 202. TEMPORARY EXCLUSION OF EARNED INCOME

9 FOR PURPOSES OF DETERMINING RENT PAID

10 FOR UNITS IN FEDERALLY ASSISTED

11 HOUSING.

12 (a) IN GENERAL.—Notwithstanding any other

13 provision of law, the amount of rent payable by a qualified

14 family for a qualified dwelling unit may not be increased

15 because of the increased income due to the employment

16 referred to in subsection (b)(2)(A) for the period that be17 gins upon the commencement of such employment and

18 ends—

19 (A) 24 months thereafter, or

20 (B) upon the first date after the commencement

21 of such employment that the income of the family

22 exceeds 200 percent of the official poverty line (as

23 defined by the Office of Management and Budget

24 and revised periodically in accordance with section
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1 673(2) of the Omnibus Budget Reconciliation Act of

2 1981) applicable to a family of the size involved,

3 whichever occurs first.

4 (b) DEFINITIONS.—For purposes of this section, the

5 following definitions shall apply:

6 (1) QUALIFIED DWELLING UNIT.—The term

7 ‘‘qualified dwelling unit’’ means a dwelling unit—

8 (A) for which assistance is provided by the

9 Secretary of Housing and Urban Development

10 in the form of any grant, contract, loan, loan

11 guarantee, cooperative agreement, rental assist12 ance payment, interest subsidy, insurance, or

13 direct appropriation, or that is located in a

14 project for which such assistance is provided;

15 and

16 (B) for which the amount of rent paid by

17 the occupying family is limited, restricted, or

18 determined under law or regulation based on

19 the income of the family.

20 (2) QUALIFIED FAMILY.—The term ‘‘qualified

21 family’’ means a family—

22 (A) whose income increases as a result of

23 employment of a member of the family who was

24 previously unemployed; and
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1 (B) who was receiving aid to families with

2 dependent children under a State plan approved

3 under part A of title IV of the Social Security

4 Act immediately before such employment.

5 SEC. 203. CONTINUATION OF FOOD STAMP BENEFITS.

6 (a) AMENDMENT.—Section 5(c) of the Food Stamp

7 Act of 1977 (7 U.S.C. 2014(c)) is amended by adding at

8 the end the following:

9 ‘‘Notwithstanding any other provision of this subsection,

10 in the case of a household that receives benefits under part

11 A of title IV of the Social Security Act and whose income

12 increases because a member of such household obtains em13 ployment, the earned income from such employment shall

14 be excluded during a 2-year period for purposes of deter15 mining eligibility under such standards unless the aggre16 gate income of such household exceeds the poverty line by

17 more than 200 percent.’’.

18 (b) APPLICATION OF AMENDMENT.—The amendment

19 made by subsection (a) shall not apply with respect to cer20 tification periods beginning before the date of the enact21 ment of this Act.
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1 TITLE III—IMPROVING CHILD

2 SUPPORT ENFORCEMENT

3 Subtitle A—Eligibility and Other

4 Matters Concerning Title IV–D

5 Program Clients

6 SEC. 301. STATE OBLIGATION TO PROVIDE PATERNITY ES7 TABLISHMENT AND CHILD SUPPORT EN8 FORCEMENT SERVICES.

9 (a) STATE LAW REQUIREMENTS.—Section 466(a)

10 (42 U.S.C. 666(a)) is amended by adding at the end the

11 following new paragraph:

12 ‘‘(12) USE OF CENTRAL CASE REGISTRY AND

13 CENTRALIZED COLLECTIONS UNIT.—Procedures

14 under which—

15 ‘‘(A) every child support order established

16 or modified in the State on or after October 1,

17 1998, is recorded in the central case registry

18 established in accordance with section 454A(e);

19 and

20 ‘‘(B) child support payments are collected

21 through the centralized collections unit estab22 lished in accordance with section 454B—

23 ‘‘(i) on and after October 1, 1998,

24 under each order subject to wage withhold25 ing under section 466(b); and
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1 ‘‘(ii) on and after October 1, 1999,

2 under each other order required to be re3 corded in such central case registry under

4 this paragraph or section 454A(e), except

5 as provided in subparagraph (C); and

6 ‘‘(C)(i) parties subject to a child support

7 order described in subparagraph (B)(ii) may

8 opt out of the procedure for payment of support

9 through the centralized collections unit (but not

10 the procedure for inclusion in the central case

11 registry) by filing with State agency a written

12 agreement, signed by both parties, to an alter13 native payment procedure; and

14 ‘‘(ii) an agreement described in clause (i)

15 becomes void whenever either party advises the

16 State agency of an intent to vacate the agree17 ment.’’.

18 (b) STATE PLAN REQUIREMENTS.—Section 454 (42

19 U.S.C. 654) is amended—

20 (1) by striking paragraph (4) and inserting the

21 following:

22 ‘‘(4) provide that such State will undertake—

23 ‘‘(A) to provide appropriate services under

24 this part to—
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1 ‘‘(i) each child with respect to whom

2 an assignment is effective under section

3 402(a)(26), 471(a)(17), or 1912 (except in

4 cases where the State agency determines,

5 in accordance with paragraph (25), that it

6 is against the best interests of the child to

7 do so); and

8 ‘‘(ii) each child not described in clause

9 (i)—

10 ‘‘(I) with respect to whom an in11 dividual applies for such services; and

12 ‘‘(II) (on and after October 1,

13 1998) each child with respect to

14 whom a support order is recorded in

15 the central State case registry estab16 lished under section 454A, regardless

17 of whether application is made for

18 services under this part; and

19 ‘‘(B) to enforce the support obligation es20 tablished with respect to the custodial parent of

21 a child described in subparagraph (A) unless

22 the parties to the order which establishes the

23 support obligation have opted, in accordance

24 with section 466(a)(12)(C), for an alternative

25 payment procedure.’’; and
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1 (2) in paragraph (6)—

2 (A) by striking subparagraph (A) and in3 serting the following:

4 ‘‘(A) services under the State plan shall be

5 made available to nonresidents on the same

6 terms as to residents;’’;

7 (B) in subparagraph (B)—

8 (i) by inserting ‘‘on individuals not re9 ceiving assistance under part A’’ after

10 ‘‘such services shall be imposed’’; and

11 (ii) by inserting ‘‘but no fees or costs

12 shall be imposed on any absent or custo13 dial parent or other individual for inclusion

14 in the central State registry maintained

15 pursuant to section 454A(e)’’; and

16 (C) in each of subparagraphs (B), (C), and

17 (D)—

18 (i) by indenting such subparagraph

19 and aligning its left margin with the left

20 margin of subparagraph (A); and

21 (ii) by striking the final comma and

22 inserting a semicolon.

23 (c) CONFORMING AMENDMENTS.—
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1 (1) Section 452(g)(2)(A) (42 U.S.C.

2 652(g)(2)(A)) is amended by striking ‘‘454(6)’’ each

3 place it appears and inserting ‘‘454(4)(A)(ii)’’.

4 (2) Section 454(23) (42 U.S.C. 654(23)) is

5 amended, effective October 1, 1998, by striking ‘‘in6 formation as to any application fees for such services

7 and’’.

8 (3) Section 466(a)(3)(B) (42 U.S.C.

9 666(a)(3)(B)) is amended by striking ‘‘in the case of

10 overdue support which a State has agreed to collect

11 under section 454(6)’’ and inserting ‘‘in any other

12 case’’.

13 (4) Section 466(e) (42 U.S.C. 666(e)) is

14 amended by striking ‘‘or (6)’’.

15 SEC. 302. DISTRIBUTION OF PAYMENTS.

16 (a) DISTRIBUTIONS THROUGH STATE CHILD SUP17 PORT ENFORCEMENT AGENCY TO FORMER ASSISTANCE

18 RECIPIENTS.—Section 454(5) (42 U.S.C. 654(5)) is

19 amended—

20 (1) in subparagraph (A)—

21 (A) by inserting ‘‘except as otherwise spe22 cifically provided in section 464 or 466(a)(3),’’

23 after ‘‘is effective,’’; and

24 (B) by striking ‘‘except that’’ and all that

25 follows through the semicolon; and
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1 (2) in subparagraph (B), by striking ‘‘, except’’

2 and all that follows through ‘‘medical assistance’’.

3 (b) DISTRIBUTION TO A FAMILY CURRENTLY RE4 CEIVING AFDC.—Section 457 (42 U.S.C. 657) is amend5 ed—

6 (1) by striking subsection (a) and redesignating

7 subsection (b) as subsection (a);

8 (2) in subsection (a), as redesignated—

9 (A) in the matter preceding paragraph (2),

10 to read as follows:

11 ‘‘(a) IN THE CASE OF A FAMILY RECEIVING

12 AFDC.—Amounts collected under this part during any

13 month as support of a child who is receiving assistance

14 under part A (or a parent or caretaker relative of such

15 a child) shall (except in the case of a State exercising the

16 option under subsection (b)) be distributed as follows:

17 ‘‘(1) an amount equal to the amount that will

18 be disregarded pursuant to section 402(a)(8)(A)(vi)

19 shall be taken from each of—

20 ‘‘(A) amounts received in a month which

21 represent payments for that month; and

22 ‘‘(B) amounts received in a month which

23 represent payments for a prior month which

24 were made by the absent parent in the month

25 when due;
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1 and shall be paid to the family without affecting its

2 eligibility for assistance or decreasing any amount

3 otherwise payable as assistance to such family dur4 ing such month;’’;

5 (B) in paragraph (4), by striking ‘‘or (B)’’

6 and all that follows and inserting ‘‘; then (B)

7 from any remainder, amounts equal to arrear8 ages of such support obligations assigned, pur9 suant to part A, to any other State or States

10 shall be paid to such other State or States and

11 used to any such arrearages (with appropriate

12 reimbursement of the Federal Government to

13 the extent of its participation in the financing);

14 and then (C) any remainder shall be paid to the

15 family.’’.

16 (3) by inserting after subsection (a), as redesig17 nated, the following new subsection:

18 ‘‘(b) ALTERNATIVE DISTRIBUTION IN CASE OF FAM19 ILY RECEIVING AFDC.—In the case of a State electing

20 the option under this subsection, amounts collected as de21 scribed in subsection (a) shall be distributed as follows:

22 ‘‘(1) an amount equal to the amount that will

23 be disregarded pursuant to section 402(a)(8)(A)(vi)

24 shall be taken from each of—
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1 ‘‘(A) amounts received in a month which

2 represent payments for that month; and

3 ‘‘(B) amounts received in a month which

4 represent payments for a prior month which

5 were made by the absent parent in the month

6 when due;

7 and shall be paid to the family without affecting its

8 eligibility for assistance or decreasing any amount

9 otherwise payable as assistance to such family dur10 ing such month;

11 ‘‘(2) second, from any remainder, amounts

12 equal to the balance of support owed for the current

13 month shall be paid to the family;

14 ‘‘(3) third, from any remainder, amounts equal

15 to arrearages of such support obligations assigned,

16 pursuant to part A, to the State making the collec17 tion shall be retained and used by such State to pay

18 any such arrearages (with appropriate reimburse19 ment of the Federal Government to the extent of its

20 participation in the financing);

21 ‘‘(4) fourth, from any remainder, amounts

22 equal to arrearages of such support obligations as23 signed, pursuant to part A, to any other State or

24 States shall be paid to such other State or States

25 and used to pay any such arrearages (with appro-
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1 priate reimbursement of the Federal Government to

2 the extent of its participation in the financing); and

3 ‘‘(5) fifth, any remainder shall be paid to the

4 family.’’.

5 (c) DISTRIBUTION TO A FAMILY NOT RECEIVING

6 AFDC.—

7 (1) IN GENERAL.—Section 457(c) (42 U.S.C.

8 657(c)) is amended to read as follows:

9 ‘‘(c) IN CASE OF FAMILY NOT RECEIVING AFDC.—

10 Amounts collected by a State agency under this part dur11 ing any month as support of a child who is not receiving

12 assistance under part A (or of a parent or caretaker rel13 ative of such a child) shall (subject to the remaining provi14 sions of this section) be distributed as follows:

15 ‘‘(1) first, amounts equal to the total of such

16 support owed for such month shall be paid to the

17 family;

18 ‘‘(2) second, from any remainder, amounts

19 equal to arrearages of such support obligations for

20 months during which such child did not receive as21 sistance under part A shall be paid to the family;

22 ‘‘(3) third, from any remainder, amounts equal

23 to arrearages of such support obligations assigned to

24 the State making the collection pursuant to part A

25 shall be retained and used by such State to pay any
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1 such arrearages (with appropriate reimbursement of

2 the Federal Government to the extent of its partici3 pation in the financing);

4 ‘‘(4) fourth, from any remainder, amounts

5 equal to arrearages of such support obligations as6 signed to any other State pursuant to part A shall

7 be paid to such other State or States, and used to

8 pay such arrearages, in the order in which such ar9 rearages accrued (with appropriate reimbursement

10 of the Federal Government to the extent of its par11 ticipation in the financing).’’.

12 (2) EFFECTIVE DATE.—The amendment made

13 by paragraph (1) shall take effect on October 1,

14 1999.

15 (d) DISTRIBUTION TO A CHILD RECEIVING ASSIST16 ANCE UNDER TITLE IV–E.—Section 457(d) (42 U.S.C.

17 657(d)) is amended, in the matter preceding paragraph

18 (1), by striking ‘‘Notwithstanding the preceding provisions

19 of this section, amounts’’ and inserting the following:

20 ‘‘(d) IN CASE OF A CHILD RECEIVING ASSISTANCE

21 UNDER TITLE IV–E.—Amounts’’.

22 (e) REGULATIONS.—The Secretary of Health and

23 Human Services shall promulgate regulations—

24 (1) under part D of title IV of the Social Secu25 rity Act, establishing a uniform nationwide standard
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1 for allocation of child support collections from an ob2 ligor owing support to more than one family; and

3 (2) under part A of such title, establishing

4 standards applicable to States electing the alter5 native formula under section 457(b) of such Act for

6 distribution of collections on behalf of families re7 ceiving Aid to Families with Dependent Children,

8 designed to minimize irregular monthly payments to

9 such families.

10 (f) CLERICAL AMENDMENT.—Section 454 (42 U.S.C.

11 654) is amended—

12 (1) in paragraph (11), by striking ‘‘(11)’’ and

13 inserting ‘‘(11)(A)’’; and

14 (2) by redesignating paragraph (12) as sub15 paragraph (B) of paragraph (11).

16 (g) MANDATORY CHILD SUPPORT PASS-THROUGH.—

17 (1) IN GENERAL.—Section 402(a)(8)(A)(vi) (42

18 U.S.C. 602(a)(8)(A)(vi)) is amended—

19 (A) by striking ‘‘$50’’ each place such

20 term appears and inserting ‘‘$50, or, if greater,

21 $50 adjusted by the CPI (as prescribed in sec22 tion 406(i));’’; and

23 (B) by striking the semicolon at the end

24 and inserting ‘‘or, in lieu of each dollar amount

25 specified in this clause, such greater amount as
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1 the State may choose (and provide for in its

2 State plan);’’.

3 (2) CPI ADJUSTMENT.—Section 406 (42

4 U.S.C. 606) is amended by adding at the end the

5 following:

6 ‘‘(i) For purposes of this part, an amount is ‘adjusted

7 by the CPI’ for any month in a calendar year by multiply8 ing the amount involved by the ratio of—

9 ‘‘(1) the Consumer Price Index (as prepared by

10 the Department of Labor) for the third quarter of

11 the preceding calendar year, to

12 ‘‘(2) such Consumer Price Index for the third

13 quarter of calendar year 1996,

14 and rounding the product, if not a multiple of $10, to the

15 nearer multiple of $10.’’.

16 SEC. 303. DUE PROCESS RIGHTS.

17 (a) IN GENERAL.—Section 454 (42 U.S.C. 654), as

18 amended by section 102(f) of this Act, is amended by in19 serting after paragraph (11) the following new paragraph:

20 ‘‘(12) provide for procedures to ensure that—

21 ‘‘(A) individuals who are applying for or

22 receiving services under this part, or are parties

23 to cases in which services are being provided

24 under this part—
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1 ‘‘(i) receive notice of all proceedings in

2 which support obligations might be estab3 lished or modified; and

4 ‘‘(ii) receive a copy of any order estab5 lishing or modifying a child support obliga6 tion, or (in the case of a petition for modi7 fication) a notice of determination that

8 there should be no change in the amount

9 of the child support award, within 14 days

10 after issuance of such order or determina11 tion;

12 ‘‘(B) individuals applying for or receiving

13 services under this part have access to a fair

14 hearing that meets standards established by the

15 Secretary and ensures prompt consideration

16 and resolution of complaints (but the resort to

17 such procedure shall not stay the enforcement

18 of any support order); and

19 ‘‘(C)(i) individuals adversely affected by

20 the establishment or modification of (or, in the

21 case of a petition for modification, the deter22 mination that there should be no change in) a

23 child support order shall be afforded not less

24 than 30 days after the receipt of the order or
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1 determination to initiate proceedings to chal2 lenge such order or determination; and

3 ‘‘(ii) the State may not provide to any

4 noncustodial parent of a child representation re5 lating to the establishment or modification of

6 an order for the payment of child support with

7 respect to that child, unless the State makes

8 provision for such representation outside the

9 State agency;’’.

10 (b) EFFECTIVE DATE.—The amendment made by

11 subsection (a) shall become effective on October 1, 1997.

12 SEC. 304. PRIVACY SAFEGUARDS.

13 (a) STATE PLAN REQUIREMENT.—Section 454 (42

14 U.S.C. 454) is amended—

15 (1) by striking ‘‘and’’ at the end of paragraph

16 (23);

17 (2) by striking the period at the end of para18 graph (24) and inserting ‘‘; and’’; and

19 (3) by adding after paragraph (24) the follow20 ing:

21 ‘‘(25) will have in effect safeguards applicable

22 to all sensitive and confidential information handled

23 by the State agency designed to protect the privacy

24 rights of the parties, including—
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1 ‘‘(A) safeguards against unauthorized use

2 or disclosure of information relating to proceed3 ings or actions to establish paternity, or to es4 tablish or enforce support;

5 ‘‘(B) prohibitions on the release of infor6 mation on the whereabouts of one party to an7 other party against whom a protective order

8 with respect to the former party has been en9 tered; and

10 ‘‘(C) prohibitions on the release of infor11 mation on the whereabouts of one party to an12 other party if the State has reason to believe

13 that the release of the information may result

14 in physical or emotional harm to the former

15 party.’’.

16 (b) EFFECTIVE DATE.—The amendment made by

17 subsection (a) shall become effective on October 1, 1997.

18 Subtitle B—Program

19 Administration and Funding

20 SEC. 311. FEDERAL MATCHING PAYMENTS.

21 (a) INCREASED BASE MATCHING RATE.—Section

22 455(a)(2) (42 U.S.C. 655(a)(2)) is amended to read as

23 follows:

24 ‘‘(2) The applicable percent for a quarter for

25 purposes of paragraph (1)(A) is—
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1 ‘‘(A) for fiscal year 1997, 69 percent,

2 ‘‘(B) for fiscal year 1998, 72 percent, and

3 ‘‘(C) for fiscal year 1999 and succeeding

4 fiscal years, 75 percent.’’.

5 (b) MAINTENANCE OF EFFORT.—Section 455 (42

6 U.S.C. 655) is amended—

7 (1) in subsection (a)(1), in the matter preced8 ing subparagraph (A), by striking ‘‘From’’ and in9 serting ‘‘Subject to subsection (c), from’’; and

10 (2) by inserting after subsection (b) the follow11 ing new subsection:

12 ‘‘(c) MAINTENANCE OF EFFORT.—Notwithstanding

13 the provisions of subsection (a), total expenditures for the

14 State program under this part for fiscal year 1997 and

15 each succeeding fiscal year, reduced by the percentage

16 specified for such fiscal year under subsection (a)(2) (A),

17 (B), or (C)(i), shall not be less than such total expendi18 tures for fiscal year 1996, reduced by 66 percent.’’.

19 SEC. 312. PERFORMANCE-BASED INCENTIVES AND PEN20 ALTIES.

21 (a) INCENTIVE ADJUSTMENTS TO FEDERAL MATCH22 ING RATE.—Section 458 (42 U.S.C. 658) is amended to

23 read as follows:

24 ‘‘INCENTIVE ADJUSTMENTS TO MATCHING RATE

25 ‘‘SEC. 458. (a) INCENTIVE ADJUSTMENT.—
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1 ‘‘(1) IN GENERAL.—In order to encourage and

2 reward State child support enforcement programs

3 which perform in an effective manner, the Federal

4 matching rate for payments to a State under section

5 455(a)(1)(A), for each fiscal year beginning on or

6 after October 1, 1998, shall be increased by a factor

7 reflecting the sum of the applicable incentive adjust8 ments (if any) determined in accordance with regu9 lations under this section with respect to Statewide

10 paternity establishment and to overall performance

11 in child support enforcement.

12 ‘‘(2) STANDARDS.—

13 ‘‘(A) IN GENERAL.—The Secretary shall

14 specify in regulations—

15 ‘‘(i) the levels of accomplishment, and

16 rates of improvement as alternatives to

17 such levels, which States must attain to

18 qualify for incentive adjustments under

19 this section; and

20 ‘‘(ii) the amounts of incentive adjust21 ment that shall be awarded to States

22 achieving specified accomplishment or im23 provement levels, which amounts shall be

24 graduated, ranging up to—
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1 ‘‘(I) 5 percentage points, in con2 nection with Statewide paternity es3 tablishment; and

4 ‘‘(II) 10 percentage points, in

5 connection with overall performance in

6 child support enforcement.

7 ‘‘(B) LIMITATION.—In setting performance

8 standards pursuant to subparagraph (A)(i) and

9 adjustment amounts pursuant to subparagraph

10 (A)(ii), the Secretary shall ensure that the ag11 gregate number of percentage point increases as

12 incentive adjustments to all States do not ex13 ceed such aggregate increases as assumed by

14 the Secretary in estimates of the cost of this

15 section as of June 1995, unless the aggregate

16 performance of all States exceeds the projected

17 aggregate performance of all States in such cost

18 estimates.

19 ‘‘(3) DETERMINATION OF INCENTIVE ADJUST20 MENT.—The Secretary shall determine the amount

21 (if any) of incentive adjustment due each State on

22 the basis of the data submitted by the State pursu23 ant to section 454(15)(B) concerning the levels of

24 accomplishment (and rates of improvement) with re-
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1 spect to performance indicators specified by the Sec2 retary pursuant to this section.

3 ‘‘(4) FISCAL YEAR SUBJECT TO INCENTIVE AD4 JUSTMENT.—The total percentage point increase de5 termined pursuant to this section with respect to a

6 State program in a fiscal year shall apply as an ad7 justment to the applicable percent under section

8 455(a)(2) for payments to such State for the suc9 ceeding fiscal year.

10 ‘‘(5) RECYCLING OF INCENTIVE ADJUST11 MENT.—A State shall expend in the State program

12 under this part all funds paid to the State by the

13 Federal Government as a result of an incentive ad14 justment under this section.

15 ‘‘(b) MEANING OF TERMS.—For purposes of this sec16 tion—

17 ‘‘(1) the term ‘Statewide paternity establish18 ment percentage’ means, with respect to a fiscal

19 year, the ratio (expressed as a percentage) of—

20 ‘‘(A) the total number of out-of-wedlock

21 children in the State under one year of age for

22 whom paternity is established or acknowledged

23 during the fiscal year, to
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1 ‘‘(B) the total number of children born out

2 of wedlock in the State during such fiscal year;

3 and

4 ‘‘(2) the term ‘overall performance in child sup5 port enforcement’ means a measure or measures of

6 the effectiveness of the State agency in a fiscal year

7 which takes into account factors including—

8 ‘‘(A) the percentage of cases requiring a

9 child support order in which such an order was

10 established;

11 ‘‘(B) the percentage of cases in which child

12 support is being paid;

13 ‘‘(C) the ratio of child support collected to

14 child support due; and

15 ‘‘(D) the cost-effectiveness of the State

16 program, as determined in accordance with

17 standards established by the Secretary in regu18 lations.’’.

19 (b) ADJUSTMENT OF PAYMENTS UNDER PART D OF

20 TITLE IV.—Section 455(a)(2) (42 U.S.C. 655(a)(2)), as

21 amended by section 111(a) of this Act, is amended—

22 (1) by striking the period at the end of sub23 paragraph (C)(ii) and inserting a comma; and
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1 (2) by adding after and below subparagraph

2 (C), flush with the left margin of the subsection, the

3 following:

4 ‘‘increased by the incentive adjustment factor (if any) de5 termined by the Secretary pursuant to section 458.’’.

6 (c) CONFORMING AMENDMENTS.—Section 454(22)

7 (42 U.S.C. 654(22)) is amended—

8 (1) by striking ‘‘incentive payments’’ the first

9 place it appears and inserting ‘‘incentive adjust10 ments’’; and

11 (2) by striking ‘‘any such incentive payments

12 made to the State for such period’’ and inserting

13 ‘‘any increases in Federal payments to the State re14 sulting from such incentive adjustments’’.

15 (d) CALCULATION OF IV–D PATERNITY ESTABLISH16 MENT PERCENTAGE.—(1) Section 452(g)(1) (42 U.S.C.

17 652(g)(1)) is amended in the matter preceding subpara18 graph (A) by inserting ‘‘its overall performance in child

19 support enforcement is satisfactory (as defined in section

20 458(b) and regulations of the Secretary), and’’ after

21 ‘‘1994,’’.

22 (2) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is

23 amended—

24 (A) in subparagraph (A), in the matter preced25 ing clause (i)—
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1 (i) by striking ‘‘paternity establishment

2 percentage’’ and inserting ‘‘IV–D paternity es3 tablishment percentage’’; and

4 (ii) by striking ‘‘(or all States, as the case

5 may be)’’;

6 (B) in subparagraph (A)(i), by striking ‘‘during

7 the fiscal year’’;

8 (C) in subparagraph (A)(ii)(I), by striking ‘‘as

9 of the end of the fiscal year’’ and inserting ‘‘in the

10 fiscal year or, at the option of the State, as of the

11 end of such year’’;

12 (D) in subparagraph (A)(ii)(II), by striking ‘‘or

13 (E) as of the end of the fiscal year’’ and inserting

14 ‘‘in the fiscal year or, at the option of the State, as

15 of the end of such year’’;

16 (E) in subparagraph (A)(iii)—

17 (i) by striking ‘‘during the fiscal year’’;

18 and

19 (ii) by striking ‘‘and’’ at the end; and

20 (F) in the matter following subparagraph (A)—

21 (i) by striking ‘‘who were born out of wed22 lock during the immediately preceding fiscal

23 year’’ and inserting ‘‘born out of wedlock’’;
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1 (ii) by striking ‘‘such preceding fiscal

2 year’’ both places it appears and inserting ‘‘the

3 preceding fiscal year’’; and

4 (iii) by striking ‘‘or (E)’’ the second place

5 it appears.

6 (3) Section 452(g)(3) (42 U.S.C. 652(g)(3)) is

7 amended—

8 (A) by striking subparagraph (A) and redesig9 nating subparagraphs (B) and (C) as subparagraphs

10 (A) and (B), respectively;

11 (B) in subparagraph (A), as redesignated, by

12 striking ‘‘the percentage of children born out-of-wed13 lock in the State’’ and inserting ‘‘the percentage of

14 children in the State who are born out of wedlock

15 or for whom support has not been established’’; and

16 (C) in subparagraph (B), as redesignated—

17 (i) by inserting ‘‘and overall performance

18 in child support enforcement’’ after ‘‘paternity

19 establishment percentages’’; and

20 (ii) by inserting ‘‘and securing support’’

21 before the period.

22 (e) REDUCTION OF PAYMENTS UNDER PART D OF

23 TITLE IV.—
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1 (1) NEW REQUIREMENTS.—Section 455 (42

2 U.S.C. 655) is amended by inserting after sub3 section (b) the following:

4 ‘‘(c)(1) If the Secretary finds, with respect to a State

5 program under this part in a fiscal year beginning on or

6 after October 1, 1997—

7 ‘‘(A)(i) on the basis of data submitted by a

8 State pursuant to section 454(15)(B), that the State

9 program in such fiscal year failed to achieve the IV–

10 D paternity establishment percentage (as defined in

11 section 452(g)(2)(A)) or the appropriate level of

12 overall performance in child support enforcement (as

13 defined in section 458(b)(2)), or to meet other per14 formance measures that may be established by the

15 Secretary, or

16 ‘‘(ii) on the basis of an audit or audits of such

17 State data conducted pursuant to section

18 452(a)(4)(C), that the State data submitted pursu19 ant to section 454(15)(B) is incomplete or unreli20 able; and

21 ‘‘(B) that, with respect to the succeeding fiscal

22 year—

23 ‘‘(i) the State failed to take sufficient cor24 rective action to achieve the appropriate per-
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1 formance levels as described in subparagraph

2 (A)(i) of the paragraph, or

3 ‘‘(ii) the data submitted by the State pur4 suant to section 454(15)(B) is incomplete or

5 unreliable,

6 the amounts otherwise payable to the State under this

7 part for quarters following the end of such succeeding fis8 cal year, prior to quarters following the end of the first

9 quarter throughout which the State program is in compli10 ance with such performance requirement, shall be reduced

11 by the percentage specified in paragraph (2).

12 ‘‘(2) The reductions required under paragraph (1)

13 shall be—

14 ‘‘(A) not less than 6 nor more than 8 percent,

15 or

16 ‘‘(B) not less than 8 nor more than 12 percent,

17 if the finding is the second consecutive finding made

18 pursuant to paragraph (1), or

19 ‘‘(C) not less than 12 nor more than 15 per20 cent, if the finding is the third or a subsequent con21 secutive such finding.

22 ‘‘(3) For purposes of this subsection, section

23 402(a)(27), and section 452(a)(4), a State which is deter24 mined as a result of an audit to have submitted incomplete

25 or unreliable data pursuant to section 454(15)(B), shall
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1 be determined to have submitted adequate data if the Sec2 retary determines that the extent of the incompleteness

3 or unreliability of the data is of a technical nature which

4 does not adversely affect the determination of the level of

5 the State’s performance.’’.

6 (2) CONFORMING AMENDMENTS.—

7 (A) Section 403 (42 U.S.C. 603) is amend8 ed by striking subsection (h).

9 (B) Section 452(a)(4) (42 U.S.C.

10 652(a)(4)) is amended by striking ‘‘403(h)’’

11 each place such term appears and inserting

12 ‘‘455(c)’’.

13 (C) Subsections (d)(3)(A), (g)(1), and

14 (g)(3)(A) of section 452 (42 U.S.C. 652) are

15 each amended by striking ‘‘403(h)’’ and insert16 ing ‘‘455(c)’’.

17 (f) EFFECTIVE DATES.—

18 (1) INCENTIVE ADJUSTMENTS.—

19 (A) The amendments made by subsections

20 (a), (b), and (c) shall become effective October

21 1, 1997, except to the extent provided in sub22 paragraph (B).

23 (B) Section 458 of the Social Security Act,

24 as in effect prior to the enactment of this sec25 tion, shall be effective for purposes of incentive
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1 payments to States for fiscal years prior to fis2 cal year 1999.

3 (2) PENALTY REDUCTIONS.—

4 (A) The amendments made by subsection

5 (d) shall become effective with respect to cal6 endar quarters beginning on and after the date

7 of enactment of this Act.

8 (B) The amendments made by subsection

9 (e) shall become effective with respect to cal10 endar quarters beginning on and after the date

11 one year after the date of enactment of this

12 Act.

13 SEC. 313. FEDERAL AND STATE REVIEWS AND AUDITS.

14 (a) STATE AGENCY ACTIVITIES.—Section 454 (42

15 U.S.C. 654) is amended—

16 (1) in paragraph (14), by striking ‘‘(14)’’ and

17 insert ‘‘(14)(A)’’;

18 (2) by redesignating paragraph (15) as sub19 paragraph (B) of paragraph (14); and

20 (3) by inserting after paragraph (14) the fol21 lowing new paragraph:

22 ‘‘(15) provide for—

23 ‘‘(A) a process for annual reviews of and

24 reports to the Secretary on the State program

25 under this part, which shall include such infor-
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1 mation as may be necessary to measure State

2 compliance with Federal requirements for expe3 dited procedures and timely case processing,

4 using such standards and procedures as are re5 quired by the Secretary, under which the State

6 agency will determine the extent to which such

7 program is in conformity with applicable re8 quirements with respect to the operation of

9 State programs under this part (including the

10 status of complaints filed under the procedure

11 required under paragraph (12)(B)); and

12 ‘‘(B) a process of extracting from the

13 State automated data processing system and

14 transmitting to the Secretary data and calcula15 tions concerning the levels of accomplishment

16 (and rates of improvement) with respect to ap17 plicable performance indicators (including IV–D

18 paternity establishment percentages and overall

19 performance in child support enforcement) to

20 the extent necessary for purposes of sections

21 452(g) and 458.’’.

22 (b) FEDERAL ACTIVITIES.—Section 452(a)(4) (42

23 U.S.C. 652(a)(4)) is amended to read as follows:

24 ‘‘(4)(A) review data and calculations transmit25 ted by State agencies pursuant to section
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1 454(15)(B) on State program accomplishments with

2 respect to performance indicators for purposes of

3 section 452(g) and 458, and determine the amount

4 (if any) of penalty reductions pursuant to section

5 455(c) to be applied to the State;

6 ‘‘(B) review annual reports by State agencies

7 pursuant to section 454(15)(A) on State program

8 conformity with Federal requirements; evaluate any

9 elements of a State program in which significant de10 ficiencies are indicated by such report on the status

11 of complaints under the State procedure under sec12 tion 454(12)(B); and, as appropriate, provide to the

13 State agency comments, recommendations for addi14 tional or alternative corrective actions, and technical

15 assistance; and

16 ‘‘(C) conduct audits, in accordance with the

17 government auditing standards of the United States

18 Comptroller General—

19 ‘‘(i) at least once every 3 years (or more

20 frequently, in the case of a State which fails to

21 meet requirements of this part, or of regula22 tions implementing such requirements, concern23 ing performance standards and reliability of

24 program data) to assess the completeness, reli25 ability, and security of the data, and the accu-
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1 racy of the reporting systems, used for the cal2 culations of performance indicators specified in

3 subsection (g) and section 458;

4 ‘‘(ii) of the adequacy of financial manage5 ment of the State program, including assess6 ments of—

7 ‘‘(I) whether Federal and other funds

8 made available to carry out the State pro9 gram under this part are being appro10 priately expended, and are properly and

11 fully accounted for; and

12 ‘‘(II) whether collections and disburse13 ments of support payments and program

14 income are carried out correctly and are

15 properly and fully accounted for; and

16 ‘‘(iii) for such other purposes as the Sec17 retary may find necessary;’’.

18 (c) EFFECTIVE DATE.—The amendments made by

19 this section shall be effective with respect to calendar

20 quarters beginning on or after the date one year after en21 actment of this section.

22 SEC. 314. REQUIRED REPORTING PROCEDURES.

23 (a) ESTABLISHMENT.—Section 452(a)(5) (42 U.S.C.

24 652(a)(5)) is amended by inserting ‘‘, and establish proce25 dures to be followed by States for collecting and reporting
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1 information required to be provided under this part, and

2 establish uniform definitions (including those necessary to

3 enable the measurement of State compliance with the re4 quirements of this part relating to expedited processes and

5 timely case processing) to be applied in following such pro6 cedures’’ before the semicolon.

7 (b) STATE PLAN REQUIREMENT.—Section 454 (42

8 U.S.C. 654), as amended by section 104(a) of this Act,

9 is amended—

10 (1) by striking ‘‘and’’ at the end of paragraph

11 (24);

12 (2) by striking the period at the end of para13 graph (25) and inserting ‘‘; and’’; and

14 (3) by adding after paragraph (25) the follow15 ing:

16 ‘‘(26) provide that the State shall use the defi17 nitions established under section 452(a)(5) in col18 lecting and reporting information as required under

19 this part.’’.

20 SEC. 315. AUTOMATED DATA PROCESSING REQUIREMENTS.

21 (a) REVISED REQUIREMENTS.—

22 (1) Section 454(16) (42 U.S.C. 654(16)) is

23 amended—

24 (A) by striking ‘‘, at the option of the

25 State,’’;
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1 (B) by inserting ‘‘and operation by the

2 State agency’’ after ‘‘for the establishment’’;

3 (C) by inserting ‘‘meeting the requirements

4 of section 454A’’ after ‘‘information retrieval

5 system’’;

6 (D) by striking ‘‘in the State and localities

7 thereof, so as (A)’’ and inserting ‘‘so as’’;

8 (E) by striking ‘‘(i)’’; and

9 (F) by striking ‘‘(including’’ and all that

10 follows and inserting a semicolon.

11 (2) Part D of title IV (42 U.S.C. 651–669) is

12 amended by inserting after section 454 the following

13 new section:

14 ‘‘AUTOMATED DATA PROCESSING

15 ‘‘SEC. 454A. (a) IN GENERAL.—In order to meet the

16 requirements of this section, for purposes of the require17 ment of section 454(16), a State agency shall have in op18 eration a single statewide automated data processing and

19 information retrieval system which has the capability to

20 perform the tasks specified in this section, and perform

21 such tasks with the frequency and in the manner specified

22 in this part or in regulations or guidelines of the Sec23 retary.

24 ‘‘(b) PROGRAM MANAGEMENT.—The automated sys25 tem required under this section shall perform such func-
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1 tions as the Secretary may specify relating to management

2 of the program under this part, including—

3 ‘‘(1) controlling and accounting for use of Fed4 eral, State, and local funds to carry out such pro5 gram; and

6 ‘‘(2) maintaining the data necessary to meet

7 Federal reporting requirements on a timely basis.

8 ‘‘(c) CALCULATION OF PERFORMANCE INDICA9 TORS.—In order to enable the Secretary to determine the

10 incentive and penalty adjustments required by sections

11 452(g) and 458, the State agency shall—

12 ‘‘(1) use the automated system—

13 ‘‘(A) to maintain the requisite data on

14 State performance with report to paternity es15 tablishment and child support enforcement in

16 the State; and

17 ‘‘(B) to calculate the IV–D paternity es18 tablishment percentage and overall performance

19 in child support enforcement for the State for

20 each fiscal year; and

21 ‘‘(2) have in place systems controls to ensure

22 the completeness, and reliability of, and ready access

23 to, the data described in paragraph (1)(A), and the

24 accuracy of the calculations described in paragraph

25 (1)(B).
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1 ‘‘(d) INFORMATION INTEGRITY AND SECURITY.—The

2 State agency shall have in effect safeguards on the integ3 rity, accuracy, and completeness of, access to, and use of

4 data in the automated system required under this section,

5 which shall include the following (in addition to such other

6 safeguards as the Secretary specifies in regulations):

7 ‘‘(1) POLICIES RESTRICTING ACCESS.—Written

8 policies concerning access to data by State agency

9 personnel, and sharing of data with other persons,

10 which—

11 ‘‘(A) permit access to and use of data only

12 to the extent necessary to carry out program re13 sponsibilities;

14 ‘‘(B) specify the data which may be used

15 for particular program purposes, and the per16 sonnel permitted access to such data; and

17 ‘‘(C) ensure that data obtained or disclosed

18 for a limited program purpose is not used or

19 redisclosed for another, impermissible purpose.

20 ‘‘(2) SYSTEMS CONTROLS.—Systems controls

21 (such as passwords or blocking of fields) to ensure

22 strict adherence to the policies specified under para23 graph (1).

24 ‘‘(3) MONTIORING OF ACCESS.—Routine mon25 itoring of access to and use of the automated sys-
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1 tem, through methods such as audit trails and feed2 back mechanism, to guard against and promptly

3 identify unauthorized access or use.

4 ‘‘(4) TRAINING AND INFORMATION.—The State

5 agency shall have in effect procedures to ensure that

6 all personnel (including State and local agency staff

7 and contractors) who may have access to or be re8 quired to use sensitive or confidential program data

9 are fully informed of applicable requirements and

10 penalties, and are adequately trained in security pro11 cedures.

12 ‘‘(5) PENALTIES.—The State agency shall have

13 in effect administrative penalties (up to and includ14 ing dismissal from employment) for unauthorized ac15 cess to, or disclosure or use of, confidential data.’’.

16 (3) REGULATIONS.—Section 452 (42 U.S.C.

17 652) is amended by adding at the end the following:

18 ‘‘(j) The Secretary shall prescribe final regulations

19 for implementation of the requirements of section 454A

20 not later than 2 years after the date of enactment of this

21 subsection.’’.

22 (4) IMPLEMENTATION TIMETABLE.—Section

23 454(24) (42 U.S.C. 654(24)), as amended by sec24 tions 304(a)(2) and 314(b)(1) of this Act, is amend25 ed to read as follows:
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1 ‘‘(24) provide that the State will have in effect

2 an automated data processing and information re3 trieval system—

4 ‘‘(A) by October 1, 1995, meeting all re5 quirements of this part which were enacted on

6 or before the date of enactment of the Family

7 Support Act of 1988; and

8 ‘‘(B) by October 1, 1999, meeting all re9 quirements of this part enacted on or before the

10 date of enactment of this Act.

11 (but this provision shall not be construed to alter

12 earlier deadlines specified for elements of such sys13 tem), except that such deadline shall be extended by

14 1 day for each day (if any) by which the Secretary

15 fails to meet the deadline imposed by section

16 452(j);’’.

17 (b) SPECIAL FEDERAL MATCHING RATE FOR DE18 VELOPMENT COSTS OF AUTOMATED SYSTEMS.—Section

19 455(a) (42 U.S.C. 655(a)) is amended—

20 (1) in paragraph (1)(B)—

21 (A) by striking ‘‘90 percent’’ and inserting

22 ‘‘the percent specified in paragraph (3)’’;

23 (B) by striking ‘‘so much of’’; and

24 (C) by striking ‘‘which the Secretary’’ and

25 all that follows and inserting ‘‘, and’’; and
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1 (2) by adding at the end the following new

2 paragraph:

3 ‘‘(3)(A) The Secretary shall pay to each State, for

4 each quarter in fiscal year 1996, 90 percent of so much

5 of State expenditures described in subparagraph (1)(B) as

6 the Secretary finds are for a system meeting the require7 ments specified in section 454(16), or meeting such re8 quirements without regard to clause (D) thereof.

9 ‘‘(B)(i) The Secretary shall pay to each State, for

10 each quarter in fiscal years 1997 through 2001, the per11 centage specified in clause (ii) of so much of State expend12 itures described in subparagraph (1)(B) as the Secretary

13 finds are for a system meeting the requirements specified

14 in section 454(16) and 454A, subject to clause (iii).

15 ‘‘(ii) The percentage specified in this clause, for pur16 poses of clause (i), is the higher of—

17 ‘‘(I) 80 percent, or

18 ‘‘(II) the percentage otherwise applicable to

19 Federal payments to the State under subparagraph

20 (A) (as adjusted pursuant to section 458).’’.

21 (c) CONFORMING AMENDMENT.—Section 123(c) of

22 the Family Support Act of 1988 (102 Stat. 2352; Public

23 Law 100–485) is repealed.

24 (d) ADDITIONAL PROVISIONS.—For additional provi25 sions of section 454A, as added by subsection (a) of this
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1 section, see the amendments made by sections 21, 322(c),

2 and 333(d) of this Act.

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

4 (a) REPORTING TO SECRETARY.—Section 452(a) (42

5 U.S.C. 652(a)) is amended in the matter preceding para6 graph (1) by striking ‘‘directly’’.

7 (b) STAFFING STUDIES.—

8 (1) SCOPE.—The Secretary of Health and

9 Human Services shall, directly or by contract, con10 duct studies of the staffing of each State child sup11 port enforcement program under part D of title IV

12 of the Social Security Act. Such studies shall include

13 a review of the staffing needs created by require14 ments for automated data processing, maintenance

15 of a central case registry and centralized collections

16 of child support, and of changes in these needs re17 sulting from changes in such requirements. Such

18 studies shall examine and report on effective staffing

19 practices used by the States and on recommended

20 staffing procedures.

21 (2) FREQUENCY OF STUDIES.—The Secretary

22 shall complete the first staffing study required under

23 paragraph (1) by October 1, 1997, and may conduct

24 additional studies subsequently at appropriate inter25 vals.
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1 (3) REPORT TO THE CONGRESS.—The Sec2 retary shall submit a report to the Congress stating

3 the findings and conclusions of each study conducted

4 under this subsection.

5 SEC. 317. FUNDING FOR SECRETARIAL ASSISTANCE TO

6 STATE PROGRAMS.

7 Section 452 (42 U.S.C. 652), as amended by section

8 115(a)(3) of this Act, is amended by adding at the end

9 the following new subsection:

10 ‘‘(k) FUNDING FOR FEDERAL ACTIVITIES ASSISTING

11 STATE PROGRAMS.—(1) There shall be available to the

12 Secretary, from amounts appropriated for fiscal year 1996

13 and each succeeding fiscal year for payments to States

14 under this part, the amount specified in paragraph (2) for

15 the costs to the Secretary for—

16 ‘‘(A) information dissemination and technical

17 assistance to States, training of State and Federal

18 staff, staffing studies, and related activities needed

19 to improve programs (including technical assistance

20 concerning State automated systems);

21 ‘‘(B) research, demonstration, and special

22 projects of regional or national significance relating

23 to the operation of State programs under this part;

24 and
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1 ‘‘(C) operation of the Federal Parent Locator

2 Service under section 453, to the extent such costs

3 are not recovered through user fees.

4 ‘‘(2) The amount specified in the paragraph for a fis5 cal year is the amount equal to a percentage of the reduc6 tion in Federal payments to States under part A on ac7 count of child support (including arrearages) collected in

8 the preceding fiscal year on behalf of children receiving

9 aid under such part A in such preceding fiscal year (as

10 determined on the basis of the most recent reliable data

11 available to the Secretary as of the end of the third cal12 endar quarter following the end of such preceding fiscal

13 year), equal to—

14 ‘‘(A) 1 percent, for the activities specified in

15 subparagraphs (A) and (B) of paragraph (1); and

16 ‘‘(B) 2 percent, for the activities specified in

17 subparagraph (C) of paragraph (1).’’.

18 SEC. 318. REPORTS AND DATA COLLECTION BY THE SEC19 RETARY.

20 (a) ANNUAL REPORT TO CONGRESS.—(1) Section

21 452(a)(10)(A) (42 U.S.C. 652(a)(10)(A)) is amended—

22 (A) by striking ‘‘this part;’’ and inserting ‘‘this

23 part, including—’’; and

24 (B) by adding at the end the following indented

25 clauses:
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1 ‘‘(i) the total amount of child support

2 payments collected as a result of services

3 furnished during such fiscal year to indi4 viduals receiving services under this part;

5 ‘‘(ii) the cost to the States and to the

6 Federal Government of furnishing such

7 services to those individuals; and

8 ‘‘(iii) the number of cases involving

9 families—

10 ‘‘(I) who became ineligible for aid

11 under part A during a month in such

12 fiscal year; and

13 ‘‘(II) with respect to whom a

14 child support payment was received in

15 the same month;’’.

16 (2) Section 452(a)(10)(C) (42 U.S.C. 652(a)(10)(C))

17 is amended—

18 (A) in the matter preceding clause (i)—

19 (i) by striking ‘‘with the data required

20 under each clause being separately stated for

21 cases’’ and inserting ‘‘separately stated for (1)

22 cases’’;

23 (ii) by striking ‘‘cases where the child was

24 formerly receiving’’ and inserting ‘‘or formerly

25 received’’;
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1 (iii) by inserting ‘‘or 1912’’ after

2 ‘‘471(a)(17)’’; and

3 (iv) by inserting ‘‘(2)’’ before ‘‘all other’’;

4 (B) in each of clauses (i) and (ii), by striking

5 ‘‘, and the total amount of such obligations’’;

6 (C) in clause (iii), by striking ‘‘described in’’

7 and all that follows and inserting ‘‘in which support

8 was collected during the fiscal year;’’;

9 (D) by striking clause (iv); and

10 (E) by redesignating clause (v) as clause (vii),

11 and inserting after clause (iii) the following new

12 clauses:

13 ‘‘(iv) the total amount of support col14 lected during such fiscal year and distrib15 uted as current support;

16 ‘‘(v) the total amount of support col17 lected during such fiscal year and distrib18 uted as arrearages;

19 ‘‘(vi) the total amount of support due

20 and unpaid for all fiscal years; and’’.

21 (3) Section 452(a)(10)(G) (42 U.S.C. 652(a)(10)(G))

22 is amended by striking ‘‘on the use of Federal courts

23 and’’.

24 (4) Section 452(a)(10) (42 U.S.C. 652(a)(10)) is

25 amended by striking all that follows subparagraph (I).
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1 (b) DATA COLLECTION AND REPORTING.—Section

2 469 (42 U.S.C. 669) is amended—

3 (1) by striking subsections (a) and (b) and in4 serting the following:

5 ‘‘‘(a) The Secretary shall collect and maintain, on a

6 fiscal year basis, up-to-date statistics, by State, with re7 spect to services to establish paternity and services to es8 tablish child support obligations, the data specified in sub9 section (b), separately stated, in the case of each such

10 service, with respect to—

11 ‘‘(1) families (or dependent children) receiving

12 aid under plans approved under part A (or E); and

13 ‘‘(2) families not receiving such aid.

14 ‘‘(b) The data referred to in subsection (a) are—

15 ‘‘(1) the number of cases in the caseload of the

16 State agency administering the plan under this part

17 in which such service is needed; and

18 ‘‘(2) the number of such cases in which the

19 service has been provided.’’; and

20 (2) in subsection (c), by striking ‘‘(a)(2)’’ and

21 inserting ‘‘(b)(2)’’.

22 (c) EFFECTIVE DATE.—The amendments made by

23 this section shall be effective with respect to fiscal year

24 1996 and succeeding fiscal years.
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1 Subtitle C—Locate and Case

2 Tracking

3 SEC. 321. CENTRAL STATE AND CASE REGISTRY.

4 Section 454A, as added by section 315(a)(2) of this

5 Act, is amended by adding at the end the following:

6 ‘‘(e) CENTRAL CASE REGISTRY.—

7 ‘‘(1) IN GENERAL.—The automated system re8 quired under this section shall perform the func9 tions, in accordance with the provisions of this sub10 section, of a single central registry containing

11 records with respect to each case in which services

12 are being provided by the State agency (including,

13 on and after October 1, 1998, each order specified

14 in section 466(a)(12)), using such standardized data

15 elements (such as names, social security numbers or

16 other uniform identification numbers, dates of birth,

17 and case identification numbers), and containing

18 such other information (such as information on case

19 status) as the Secretary may require.

20 ‘‘(2) PAYMENT RECORDS.—Each case record in

21 the central registry shall include a record of—

22 ‘‘(A) the amount of monthly (or other peri23 odic) support owed under the support order,

24 and other amounts due or overdue (including
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1 arrears, interest or late payment penalties, and

2 fees);

3 ‘‘(B) the date on which or circumstances

4 under which the support obligation will termi5 nate under such order;

6 ‘‘(C) all child support and related amounts

7 collected (including such amounts as fees, late

8 payment penalties, and interest on arrearages);

9 ‘‘(D) the distribution of such amounts col10 lected; and

11 ‘‘(E) the birth date of the child for whom

12 the child support order is entered.

13 ‘‘(3) UPDATING AND MONITORING.—The State

14 agency shall promptly establish and maintain, and

15 regularly monitor, case records in the registry re16 quired by this subsection, on the basis of—

17 ‘‘(A) information on administrative actions

18 and administrative and judicial proceedings and

19 orders relating to paternity and support;

20 ‘‘(B) information obtained from matches

21 with Federal, State, or local data sources;

22 ‘‘(C) information on support collections

23 and distributions; and

24 ‘‘(D) any other relevant information.
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1 ‘‘(f) DATA MATCHES AND OTHER DISCLOSURES OF

2 INFORMATION.—The automated system required under

3 this section shall have the capacity, and be used by the

4 State agency, to extract data at such times, and in such

5 standardized format or formats, as may be required by

6 the Secretary, and to share and match data with, and re7 ceive data from, other data bases and data matching serv8 ices, in order to obtain (or provide) information necessary

9 to enable the State agency (or Secretary or other State

10 or Federal agencies) to carry out responsibilities under

11 this part. Data matching activities of the State agency

12 shall include at least the following:

13 ‘‘(1) DATA BANK OF CHILD SUPPORT OR14 DERS.—Furnish to the Data Bank of Child Support

15 Orders established under section 453(h) (and update

16 as necessary, with information including notice of

17 expiration of orders) minimal information (to be

18 specified by the Secretary) on each child support

19 case in the central case registry.

20 ‘‘(2) FEDERAL PARENT LOCATOR SERVICE.—

21 Exchange data with the Federal Parent Locator

22 Service for the purposes specified in section 453.

23 ‘‘(3) AFDC AND MEDICAID AGENCIES.—Ex24 change data with State agencies (of the State and

25 of other States) administering the programs under
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1 part A and title XIX, as necessary for the perform2 ance of State agency responsibilities under this part

3 and under such programs.

4 ‘‘(4) INTRA- AND INTERSTATE DATA

5 MATCHES.—Exchange data with other agencies of

6 the State, agencies of other States, and interstate

7 information networks, as necessary and appropriate

8 to carry out (or assist other States to carry out) the

9 purposes of this part.’’.

10 SEC. 322. CENTRALIZED COLLECTION AND DISBURSEMENT

11 OF SUPPORT PAYMENTS.

12 (a) STATE PLAN REQUIREMENT.—Section 454 (42

13 U.S.C. 654), as amended by sections 304(a) and 314(b)

14 of this Act, is amended—

15 (1) by striking ‘‘and’’ at the end of paragraph

16 (25);

17 (2) by striking the period at the end of para18 graph (26) and inserting ‘‘; and’’; and

19 (3) by adding after paragraph (26) the follow20 ing new paragraph:

21 ‘‘(27) provide that the State agency, on and

22 after October 1, 1998—

23 ‘‘(A) will operate a centralized, automated

24 unit for the collection and disbursement of child
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1 support under orders being enforced under this

2 part, in accordance with section 454B; and

3 ‘‘(B) will have sufficient State staff (con4 sisting of State employees), and (at State op5 tion) contractors reporting directly to the State

6 agency to monitor and enforce support collec7 tions through such centralized unit, including

8 carrying out the automated data processing re9 sponsibilities specified in section 454A(g) and

10 to impose, as appropriate in particular cases,

11 the administrative enforcement remedies speci12 fied in section 466(c)(1).’’.

13 (b) ESTABLISHMENT OF CENTRALIZED COLLECTION

14 UNIT.—Part D of title IV (42 U.S.C. 651–669) is amend15 ed by adding after section 454A the following new section:

16 ‘‘CENTRALIZED COLLECTION AND DISBURSEMENT OF

17 SUPPORT PAYMENTS

18 ‘‘SEC. 454B. (a) IN GENERAL.—In order to meet the

19 requirement of section 454(27), the State agency must op20 erate a single centralized, automated unit for the collection

21 and disbursement of support payments, coordinated with

22 the automated data system required under section 454A,

23 in accordance with the provisions of this section, which

24 shall be—

25 ‘‘(1) operated directly by the State agency (or

26 by two or more State agencies under a regional co-
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1 operative agreement), or by a single contractor re2 sponsible directly to the State agency; and

3 ‘‘(2) used for the collection and disbursement

4 (including interstate collection and disbursement) of

5 payments under support orders in all cases being en6 forced by the State pursuant to section 454(4).

7 ‘‘(b) REQUIRED PROCEDURES.—The centralized col8 lections unit shall use automated procedures, electronic

9 processes, and computer-driven technology to the maxi10 mum extent feasible, efficient, and economical, for the col11 lection and disbursement of support payments, including

12 procedures—

13 ‘‘(1) for receipt of payments from parents, em14 ployers, and other States, and for disbursements to

15 custodial parents and other obligees, the State agen16 cy, and the State agencies of other States;

17 ‘‘(2) for accurate identification of payments;

18 ‘‘(3) to ensure prompt disbursement of the cus19 todial parent’s share of any payment; and

20 ‘‘(4) to furnish to either parent, upon request,

21 timely information on the current status of support

22 payments.’’.

23 (c) USE OF AUTOMATED SYSTEM.—Section 454A, as

24 added by section 315(a)(2) of this Act and as amended
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1 by section 321 of this Act, is amended by adding at the

2 end the following new subsection:

3 ‘‘(g) CENTRALIZED COLLECTION AND DISTRIBUTION

4 OF SUPPORT PAYMENTS.—The automated system re5 quired under this section shall be used, to the maximum

6 extent feasible, to assist and facilitate collections and dis7 bursement of support payments through the centralized

8 collections unit operated pursuant to section 454B,

9 through the performance of functions including at a mini10 mum—

11 ‘‘(1) generation of orders and notices to em12 ployers (and other debtors) for the withholding of

13 wages (and other income)—

14 ‘‘(A) within two working days after receipt

15 (from the directory of New Hires established

16 under section 453(i) or any other source) of no17 tice of and the income source subject to such

18 withholding; and

19 ‘‘(B) using uniform formats directed by

20 the Secretary;

21 ‘‘(2) ongoing monitoring to promptly identify

22 failures to make timely payment; and

23 ‘‘(3) automatic use of enforcement mechanisms

24 (including mechanisms authorized pursuant to sec25 tion 466(c)) where payments are not timely made.’’.
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1 (d) EFFECTIVE DATE.—The amendments made by

2 this section shall become effective on October 1, 1998.

3 SEC. 323. AMENDMENTS CONCERNING INCOME WITHHOLD4 ING.

5 (a) MANDATORY INCOME WITHHOLDING.—(1) Sec6 tion 466(a)(1) (42 U.S.C. 666(a)(1)) is amended to read

7 as follows:

8 ‘‘(1) INCOME WITHHOLDING.—

9 (A) UNDER ORDERS ENFORCED UNDER

10 THE STATE PLAN.—Procedures described in

11 subsection (b) for the withholding from income

12 of amounts payable as support in cases subject

13 to enforcement under the State plan.

14 ‘‘(B) UNDER CERTAIN ORDERS PREDATING

15 CHANGE IN REQUIREMENT.—Procedures under

16 which all child support orders issued (or modi17 fied) before October 1, 1996, and which are not

18 otherwise subject to withholding under sub19 section (b), shall become subject to withholding

20 from wages as provided in subsection (b) if ar21 rearages occur, without the need for a judicial

22 or administrative hearing.’’.

23 (2) Section 466(a)(8) (42 U.S.C. 666(a)(8)) is re24 pealed.

25 (3) Section 466(b) (42 U.S.C. 666(b)) is amended—
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1 (A) in the matter preceding paragraph (1), by

2 striking ‘‘subsection (a)(1)’’ and inserting ‘‘sub3 section (a)(1)(A)’’;

4 (B) in paragraph (5), by striking all that fol5 lows ‘‘administered by’’ and inserting ‘‘the State

6 through the centralized collections unit established

7 pursuant to section 454B, in accordance with the re8 quirements of such section 454B.’’;

9 (C) in paragraph (6)(A)(i)—

10 (i) in inserting ‘‘, in accordance with time11 tables established by the Secretary,’’ after

12 ‘‘must be required’’; and

13 (ii) by striking ‘‘to the appropriate agency’’

14 and all that follows and inserting ‘‘to the State

15 centralized collections unit within 5 working

16 days after the date such amount would (but for

17 this subsection) have been paid or credited to

18 the employee, for distribution in accordance

19 with this part.’’;

20 (D) in paragraph (6)(A)(ii), by inserting ‘‘be in

21 a standard format prescribed by the Secretary, and’’

22 after ‘‘shall’’; and

23 (E) in paragraph (6)(D)—

24 (i) by striking ‘‘employer who discharges’’

25 and inserting ‘‘employer who—(A) discharges’’;
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1 (ii) by relocating subparagraph (A), as des2 ignated, as an indented subparagraph after and

3 below the introductory matter;

4 (iii) by striking the period at the end; and

5 (iv) by adding after and below subpara6 graph (A) the following new subparagraph:

7 ‘‘(B) fails to withhold support from wages,

8 or to pay such amounts to the State centralized

9 collections unit in accordance with this sub10 section.’’.

11 (b) CONFORMING AMENDMENT.—Section 466(c) (42

12 U.S.C. 666(c)) is repealed.

13 (c) DEFINITION OF TERMS.—The Secretary shall

14 promulgate regulations providing definitions, for purposes

15 of part D of title IV of the Social Security Act, for the

16 term ‘‘income’’ and for such other terms relating to in17 come withholding under section 466(b) of such Act as the

18 Secretary may find it necessary or advisable to define.

19 SEC. 324. LOCATOR INFORMATION FROM INTERSTATE

20 NETWORKS.

21 Section 466(a) (42 U.S.C. 666(a)), as amended by

22 section 323(a)(2) of this Act, is amended by inserting

23 after paragraph (7) the following new paragraph:

24 ‘‘(8) LOCATOR INFORMATION FROM INTER25 STATE NETWORKS.—Procedures ensuring that the
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1 State will neither provide funding for, nor use for

2 any purpose (including any purpose unrelated to the

3 purposes of this part), any automated interstate net4 work or system used to locate individuals—

5 ‘‘(A) for purposes relating to the use of

6 motor vehicles; or

7 ‘‘(B) providing information for law en8 forcement purposes (where child support en9 forcement agencies are otherwise allowed access

10 by State and Federal law),

11 unless all Federal and State agencies administering

12 programs under this part (including the entities es13 tablished under section 453) have access to informa14 tion in such system or network to the same extent

15 as any other user of such system or network.’’.

16 SEC. 325. EXPANDED FEDERAL PARENT LOCATOR SERVICE.

17 (a) EXPANDED AUTHORITY TO LOCATE INDIVID18 UALS AND ASSETS.—Section 453 (42 U.S.C. 653) is

19 amended—

20 (1) in subsection (a), by striking all that follows

21 ‘‘subsection (c))’’ and inserting the following:

22 ‘‘, for the purpose of establishing parentage, establishing,

23 setting the amount of, modifying, or enforcing child sup24 port obligations—
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1 ‘‘(1) information on, or facilitating the discov2 ery of, the location of any individual—

3 ‘‘(A) who is under an obligation to pay

4 child support;

5 ‘‘(B) against whom such an obligation is

6 sought; or

7 ‘‘(C) to whom such an obligation is owed,

8 including such individual’s social security num9 ber (or numbers), most recent residential ad10 dress, and the name, address, and employer

11 identification number of such individual’s em12 ployer; and

13 ‘‘(2) information on the individual’s wages (or

14 other income) from, and benefits of, employment (in15 cluding rights to or enrollment in group health care

16 coverage); and

17 ‘‘(3) information on the type, status, location,

18 and amount of any assets of, or debts owed by or

19 to, any such individual.’’; and

20 (2) in subsection (b)—

21 (A) in the matter preceding paragraph (1),

22 by striking ‘‘social security’’ and all that follows

23 through ‘‘absent parent’’ and inserting ‘‘infor24 mation specified in subsection (a)’’; and
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1 (B) in paragraph (2), by inserting before

2 the period ‘‘, or from any consumer reporting

3 agency (as defined in section 603(f) of the Fair

4 Credit Reporting Act (15 U.S.C. 1681a(f))’’;

5 (3) in subsection (e)(1), by inserting before the

6 period ‘‘, or by consumer reporting agencies’’.

7 (b) REIMBURSEMENT FOR DATA FROM FEDERAL

8 AGENCIES.—Section 453(e)(2) (42 U.S.C. 653(e)(2)) is

9 amended in the fourth sentence by inserting before the

10 period ‘‘in an amount which the Secretary determines to

11 be reasonable payment for the data exchange (which

12 amount shall not include payment for the costs of obtain13 ing, compiling, or maintaining the data)’’.

14 (c) ACCESS TO CONSUMER REPORTS UNDER FAIR

15 CREDIT REPORTING ACT.—

16 (1) Section 608 of the Fair Credit Reporting

17 Act (15 U.S.C. 1681f) is amended—

18 (A) by striking ‘‘, limited to’’ and inserting

19 ‘‘to a governmental agency (including the entire

20 consumer report, in the case of a Federal,

21 State, or local agency administering a program

22 under part D of title IV of the Social Security

23 Act, and limited to’’; and
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1 (B) by striking ‘‘employment, to a govern2 mental agency’’ and inserting ‘‘employment, in

3 the case of any other governmental agency)’’.

4 (2) REIMBURSEMENT FOR REPORTS BY STATE

5 AGENCIES AND CREDIT BUREAUS.—Section 453 (42

6 U.S.C. 653) is amended by adding at the end the

7 following new subsection:

8 ‘‘(g) The Secretary is authorized to reimburse costs

9 to State agencies and consumer credit reporting agencies

10 the costs incurred by such entities in furnishing informa11 tion requested by the Secretary pursuant to this section

12 in an amount which the Secretary determines to be rea13 sonable payment for the data exchange (which amount

14 shall not include payment for the costs of obtaining, com15 piling, or maintaining the data).’’.

16 (d) DISCLOSURE OF TAX RETURN INFORMATION.—

17 (1) Section 6103(1)(6)(A)(ii) of the Internal Revenue

18 Code of 1986 is amended by striking ‘‘, but only if’’ and

19 all that follows and inserting a period.

20 (2) Section 6103(1)(8)(A) of the Internal Revenue

21 Code of 1986 is amended by inserting ‘‘Federal,’’ before

22 ‘‘State or local’’.

23 (e) TECHNICAL AMENDMENTS.—

24 (1) Sections 452(a)(9), 453(a), 453(b), 463(a),

25 and 463(e) (42 U.S.C. 652(a)(9), 653(a), 653(b),
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1 663(a), and 663(e)) are each amended by inserting

2 ‘‘Federal’’ before ‘‘Parent’’ each place it appears.

3 (2) Section 453 (42 U.S.C. 653) is amended in

4 the heading by adding ‘‘FEDERAL’’ before ‘‘PAR5 ENT’’.

6 (f) NEW COMPONENTS.—Section 453 (42 U.S.C.

7 653), as amended by subsection (c)(2) of this section, is

8 amended by adding at the end the following:

9 ‘‘(h) DATA BANK OF CHILD SUPPORT ORDERS.—

10 ‘‘(1) IN GENERAL.—Not later than October 1,

11 1998, In order to assist States in administering

12 their State plans under this part and parts A, F,

13 and G, and for the other purposes specified in this

14 section, the Secretary shall establish and maintain in

15 the Federal Parent Locator Service an automated

16 registry to be known as the Data Bank of Child

17 Support Orders, which shall contain abstracts of

18 child support orders and other information described

19 in paragraph (2) on each case in each State central

20 case registry maintained pursuant to section

21 454A(e), as furnished (and regularly updated), pur22 suant to section 454A(f), by State agencies admin23 istering programs under this part.

24 ‘‘(2) CASE INFORMATION.—The information re25 ferred to in paragraph (1), as specified by the Sec-
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1 retary, shall include sufficient information (including

2 names, social security numbers or other uniform

3 identification numbers, and State case identification

4 numbers) to identify the individuals who owe or are

5 owed support (or with respect to or on behalf of

6 whom support obligations are sought to be estab7 lished), and the State or States which have estab8 lished or modified, or are enforcing or seeking to es9 tablish, such an order.

10 ‘‘(i) DIRECTORY OF NEW HIRES.—

11 ‘‘(1) IN GENERAL.—Not later than October 1,

12 1998, In order to assist States in administering

13 their State plans under this part and parts A, F,

14 and G, and for the other purposes specified in this

15 section, the Secretary shall establish and maintain in

16 the Federal Parent Locator Service an automated

17 directory to be known as the directory of New Hires,

18 containing—

19 ‘‘(A) information supplied by employers on

20 each newly hired individual, in accordance with

21 paragraph (2); and

22 ‘‘(B) information supplied by State agen23 cies administering State unemployment com24 pensation laws, in accordance with paragraph

25 (3).
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1 ‘‘(2) EMPLOYER INFORMATION.—

2 ‘‘(A) INFORMATION REQUIRED.—Subject

3 to subparagraph (D), each employer shall fur4 nish to the Secretary, for inclusion in the direc5 tory established under this subsection, not later

6 than 10 days after the date (on or after Octo7 ber 1, 1998) on which the employer hires a new

8 employee (as defined in subparagraph (C)), a

9 report containing the name, date of birth, and

10 social security number of such employee, and

11 the employer identification number of the em12 ployer.

13 ‘‘(B) REPORTING METHOD AND FOR14 MAT.—The Secretary shall provide for trans15 mission of the reports required under subpara16 graph (A) using formats and methods which

17 minimize the burden on employers, which shall

18 include—

19 ‘‘(i) automated or electronic trans20 mission of such reports;

21 ‘‘(ii) transmission by regular mail;

22 and

23 ‘‘(iii) transmission of a copy of the

24 form required for purposes of compliance
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1 with section 3402 of the Internal Revenue

2 Code of 1986.

3 ‘‘(C) EMPLOYEE DEFINED.—For purposes

4 of this paragraph, the term ‘employee’ means

5 any individual subject to the requirement of

6 section 3402(f)(2) of the Internal Revenue Code

7 of 1986.

8 ‘‘(D) PAPERWORK REDUCTION REQUIRE9 MENT.—As required by the information re10 sources management policies published by the

11 Director of the Office of Management and

12 Budget pursuant to section 3504(b)(1) of title

13 44, United States Code, the Secretary, in order

14 to minimize the cost and reporting burden on

15 employers, shall not require reporting pursuant

16 to this paragraph if an alternative reporting

17 mechanism can be developed that either relies

18 on existing Federal or State reporting or en19 ables the Secretary to collect the needed infor20 mation in a more cost-effective and equally ex21 peditious manner, taking into account the re22 porting costs on employers.

23 ‘‘(E) CIVIL MONEY PENALTY ON NON-COM24 PLYING EMPLOYERS.—(i) Any employer that

25 fails to make a timely report in accordance with
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1 this paragraph with respect to an individual

2 shall be subject to a civil money penalty, for

3 each calendar year in which the failure occurs,

4 of the lesser of $500 or 1 percent of the wages

5 or other compensation paid by such employer to

6 such individual during such calendar year.

7 ‘‘(ii) Subject to clause (iii), the provisions

8 of section 1128A (other than subsections (a)

9 and (b) thereof) shall apply to a civil money

10 penalty under clause (i) in the same manner as

11 they apply to a civil money penalty or proceed12 ing under section 1128A(a).

13 ‘‘(iii) Any employer with respect to whom

14 a penalty under this subparagraph is upheld

15 after an administrative hearing shall be liable to

16 pay all costs of the Secretary with respect to

17 such hearing.

18 ‘‘(3) EMPLOYMENT SECURITY INFORMATION.—

19 ‘‘(A) REPORTING REQUIREMENT.—Each

20 State agency administering a State unemploy21 ment compensation law approved by the Sec22 retary of Labor under the Federal Unemploy23 ment Tax Act shall furnish to the Secretary of

24 Health and Human Services extracts of the re25 ports to the Secretary of Labor concerning the
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1 wages and unemployment compensation paid to

2 individuals required under section 303(a)(6), in

3 accordance with subparagraph (B).

4 ‘‘(B) MANNER OF COMPLIANCE.—The ex5 tracts required under subparagraph (A) shall be

6 furnished to the Secretary of Health and

7 Human Services on a quarterly basis, with re8 spect to calendar quarters beginning on and

9 after October 1, 1996, by such dates, in such

10 format, and containing such information as re11 quired by that Secretary in regulations.

12 ‘‘(j) DATA MATCHES AND OTHER DISCLOSURES.—

13 ‘‘(1) VERIFICATION BY SOCIAL SECURITY AD14 MINISTRATION.—(A) The Secretary shall transmit

15 data on individuals and employers maintained under

16 this section to the Social Security Admistration to

17 the extent necessary for verification in accordance

18 with subparagraph (B).

19 ‘‘(B) The Social Security Administration shall

20 verify the accuracy of, correct or supply to the ex21 tent necessary and feasible, and report to the Sec22 retary, the following information in data supplied by

23 the Secretary pursuant to subparagraph (A):

24 ‘‘(i) the name, social security number, and

25 birth date of each individual; and
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1 ‘‘(ii) the employer identification number of

2 each employer.

3 ‘‘(2) CHILD SUPPORT LOCATOR MATCHES.—For

4 the purpose of locating individuals for purposes of

5 paternity establishment and establishment and en6 forcement of child support, the Secretary shall—

7 ‘‘(A) match data in the directory of New

8 Hires against the child support order abstracts

9 in the Data Bank of Child Support Orders not

10 less often than every 2 working days; and

11 ‘‘(B) report information obtained from

12 such a match to concerned State agencies oper13 ating programs under this part not later than

14 2 working days after such match.

15 ‘‘(3) DATA MATCHES AND DISCLOSURES OF

16 DATA IN ALL REGISTRIES FOR TITLE IV PROGRAM

17 PURPOSES.—The Secretary shall—

18 ‘‘(A) perform matches of data in each com19 ponent of the Federal Parent Locator Service

20 maintained under this section against data in

21 each other such component (other than the

22 matches required pursuant to paragraph (1)),

23 and report information resulting from such

24 matches to State agencies operating programs

25 under this part and parts A, F, and G; and
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1 ‘‘(B) disclose data in such registries to

2 such State agencies,

3 to the extent, and with the frequency, that the Sec4 retary determines to be effective in assisting such

5 States to carry out their responsibilities under such

6 programs.

7 ‘‘(k) FEES.—

8 ‘‘(1) FOR SSA VERIFICATION.—The Secretary

9 shall reimburse the Commissioner of Social Security,

10 at a rate negotiated between the Secretary and the

11 Commissioner, the costs incurred by the Commis12 sioner in performing the verification services speci13 fied in subsection (j).

14 ‘‘(2) FOR INFORMATION FROM SESAS.—The

15 Secretary shall reimburse costs incurred by State

16 employment security agencies in furnishing data as

17 required by subsection (j)(3), at rates which the Sec18 retary determines to be reasonable (which rates shall

19 not include payment for the costs of obtaining, com20 piling, or maintaining such data).

21 ‘‘(3) FOR INFORMATION FURNISHED TO STATE

22 AND FEDERAL AGENCIES.—State and Federal agen23 cies receiving data or information from the Secretary

24 pursuant to this section shall reimburse the costs in25 curred by the Secretary in furnishing such data or
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1 information, at rates which the Secretary determines

2 to be reasonable (which rates shall include payment

3 for the costs of obtaining, verifying, maintaining,

4 and matching such data or information).

5 ‘‘(l) RESTRICTION ON DISCLOSURE AND USE.—Data

6 in the Federal Parent Locator Service, and information

7 resulting from matches using such data, shall not be used

8 or disclosed except as specifically provided in this section.

9 ‘‘(m) RETENTION OF DATA.—Data in the Federal

10 Parent Locator Service, and data resulting from matches

11 performed pursuant to this section, shall be retained for

12 such period (determined by the Secretary) as appropriate

13 for the data uses specified in this section.

14 ‘‘(n) INFORMATION INTEGRITY AND SECURITY.—The

15 Secretary shall establish and implement safeguards with

16 respect to the entities established under this section de17 signed to—

18 ‘‘(1) ensure the accuracy and completeness of

19 information in the Federal Parent Locator Service;

20 and

21 ‘‘(2) restrict access to confidential information

22 in the Federal Parent Locator Service to authorized

23 persons, and restrict use of such information to au24 thorized purposes.
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1 ‘‘(o) LIMIT ON LIABILITY.—The Secretary shall not

2 be liable to either a State or an individual for inaccurate

3 information provided to a component of the Federal Par4 ent Locator Service section and disclosed by the Secretary

5 in accordance with this section.’’.

6 (g) CONFORMING AMENDMENTS.—

7 (1) TO PART D OF TITLE IV OF THE SOCIAL SE8 CURITY ACT.—Section 454(8)(B) (42 U.S.C.

9 654(8)(B)) is amended to read as follows:

10 ‘‘(B) the Federal Parent Locator Service

11 established under section 453;’’.

12 (2) TO FEDERAL UNEMPLOYMENT TAX ACT.—

13 Section 3304(16) of the Internal Revenue Code of

14 1986 is amended—

15 (A) by striking ‘‘Secretary of Health, Edu16 cation, and Welfare’’ each place such term ap17 pears and inserting ‘‘Secretary of Health and

18 Human Services’’;

19 (B) in subparagraph (B), by striking

20 ‘‘such information’’ and all that follows and in21 serting ‘‘information furnished under subpara22 graph (A) or (B) is used only for the purposes

23 authorized under such subparagraph;’’;

24 (C) by striking ‘‘and’’ at the end of sub25 paragraph (A);
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1 (D) by redesignating subparagraph (B) as

2 subparagraph (C); and

3 (E) by inserting after subparagraph (A)

4 the following new subparagraph:

5 ‘‘(B) wage and unemployment compensa6 tion information contained in the records of

7 such agency shall be furnished to the Secretary

8 of Health and Human Services (in accordance

9 with regulations promulgated by such Sec10 retary) as necessary for the purposes of the di11 rectory of New Hires established under section

12 453(i) of the Social Security Act, and’’.

13 (3) TO STATE GRANT PROGRAM UNDER TITLE

14 III OF THE SOCIAL SECURITY ACT.—Section 303(a)

15 (42 U.S.C. 503(a)) is amended—

16 (A) by striking ‘‘and’’ at the end of para17 graph (8);

18 (B) by striking the period at the end of

19 paragraph (9) and inserting ‘‘; and’’; and

20 (C) by adding after paragraph (9) the fol21 lowing new paragraph:

22 ‘‘(10) The making of quarterly electronic re23 ports, at such dates, in such format, and containing

24 such information, as required by the Secretary of

25 Health and Human Services under section 453(i)(3),
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1 and compliance with such provisions as such Sec2 retary may find necessary to ensure the correctness

3 and verification of such reports.’’.

4 SEC. 326. USE OF SOCIAL SECURITY NUMBERS.

5 (a) STATE LAW REQUIREMENT.—Section 466(a) (42

6 U.S.C. 666(a)), as amended by section 301(a) of this Act,

7 is amended by adding at the end the following new para8 graph:

9 ‘‘(13) SOCIAL SECURITY NUMBERS RE10 QUIRED.—Procedures requiring the recording of so11 cial security numbers—

12 ‘‘(A) of both parties on marriage licenses

13 and divorce decrees; and

14 ‘‘(B) of both parents, on birth records and

15 child support and paternity orders.’’.

16 (b) CLARIFICATION OF FEDERAL POLICY.—Section

17 205(c)(2)(C)(ii) (42 U.S.C. 405(c)(2)(C)(ii)) is amended

18 by striking the third sentence and inserting ‘‘This clause

19 shall not be considered to authorize disclosure of such

20 numbers except as provided in the preceding sentence.’’.
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1 Subtitle D—Streamlining and

2 Uniformity of Procedures

3 SEC. 331. ADOPTION OF UNIFORM STATE LAWS.

4 Section 466(a) (42 U.S.C. 666(a)), as amended by

5 sections 301(a) and 328(a) of this Act, is amended by add6 ing at the end the following new paragraph:

7 ‘‘(14) INTERSTATE ENFORCEMENT.—

8 ‘‘(A) ADOPTION OF UIFSA.—Procedures

9 under which the State adopts in its entirety

10 (with the modifications and additions specified

11 in this paragraph) not later than January 1,

12 1997, and uses on and after such date, the Uni13 form Interstate Family Support Act, as ap14 proved by the National Conference of Commis15 sioners on Uniform State Laws in August,

16 1992.

17 ‘‘(B) EXPANDED APPLICATION OF

18 UIFSA.—The State law adopted pursuant to

19 subparagraph (A) shall be applied to any

20 case—

21 ‘‘(i) involving an order established or

22 modified in one State and for which a sub23 sequent modification is sought in another

24 State; or
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1 ‘‘(ii) in which interstate activity is re2 quired to enforce an order.

3 ‘‘(C) JURISDICTION TO MODIFY ORDERS.—

4 The State law adopted pursuant to subpara5 graph (A) of this paragraph shall contain the

6 following provision in lieu of section 611(a)(1)

7 of the Uniform Interstate Family Support Act

8 described in such subparagraph (A):

9 ‘‘ ‘(1) the following requirements are met:

10 ‘‘ ‘(i) the child, the individual obligee, and

11 the obligor—

12 ‘‘ ‘(I) do not reside in the issuing

13 State; and

14 ‘‘ ‘(II) either reside in this State or

15 are subject to the jurisdiction of this State

16 pursuant to section 201; and

17 ‘‘ ‘(ii) (in any case where another State is

18 exercising or seeks to exercise jurisdiction to

19 modify the order) the conditions of section 204

20 are met to the same extent as required for pro21 ceedings to establish orders; or’.

22 ‘‘(D) SERVICE OF PROCESS.—The State

23 law adopted pursuant to subparagraph (A) shall

24 recognize as valid, for purposes of any proceed25 ing subject to such State law, service of process
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1 upon persons in the State (and proof of such

2 service) by any means acceptable in another

3 State which is the initiating or responding

4 State in such proceeding.

5 ‘‘(E) COOPERATION BY EMPLOYERS.—The

6 State law adopted pursuant to subparagraph

7 (A) shall provide for the use of procedures (in8 cluding sanctions for noncompliance) under

9 which all entities in the State (including for10 profit, nonprofit, and governmental employers)

11 are required to provide promptly, in response to

12 a request by the State agency of that or any

13 other State administering a program under this

14 part, information on the employment, com15 pensation, and benefits of any individual em16 ployed by such entity as an employee or con17 tractor.’’.

18 SEC. 332. IMPROVEMENTS TO FULL FAITH AND CREDIT

19 FOR CHILD SUPPORT ORDERS.

20 Section 1738B of title 28, United States Code, is

21 amended—

22 (1) in subsection (a)(2), by striking ‘‘subsection

23 (e)’’ and inserting ‘‘subsections (e), (f), and (i)’’;

24 (2) in subsection (b), by inserting after the 2nd

25 undesignated paragraph the following:
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1 ‘‘ ‘child’s home State’ means the State in which

2 a child lived with a parent or a person acting as par3 ent for at least six consecutive months immediately

4 preceding the time of filing of a petition or com5 parable pleading for support and, if a child is less

6 than six months old, the State in which the child

7 lived from birth with any of them. A period of tem8 porary absence of any of them is counted as part of

9 the six-month period.’’;

10 (3) in subsection (c), by inserting ‘‘by a court

11 of a State’’ before ‘‘is made’’;

12 (4) in subsection (c)(1), by inserting ‘‘and sub13 sections (e), (f), and (g)’’ after ‘‘located’’;

14 (5) in subsection (d)—

15 (A) by inserting ‘‘individual’’ before ‘‘con16 testant’’; and

17 (B) by striking ‘‘subsection (e)’’ and in18 serting ‘‘subsections (e) and (f)’’;

19 (6) in subsection (e), by striking ‘‘make a modi20 fication of a child support order with respect to a

21 child that is made’’ and inserting ‘‘modify a child

22 support order issued’’;

23 (7) in subsection (e)(1), by inserting ‘‘pursuant

24 to subsection (i)’’ before the semicolon;

25 (8) in subsection (e)(2)—
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1 (A) by inserting ‘‘individual’’ before ‘‘con2 testant’’ each place such term appears; and

3 (B) by striking ‘‘to that court’s making the

4 modification and assuming’’ and inserting ‘‘with

5 the State of continuing, exclusive jurisdiction

6 for a court of another State to modify the order

7 and assume’’;

8 (9) by redesignating subsections (f) and (g) as

9 subsections (g) and (h), respectively;

10 (10) by inserting after subsection (e) the follow11 ing:

12 ‘‘(f) RECOGNITION OF CHILD SUPPORT ORDERS.—

13 If one or more child support orders have been issued in

14 this or another State with regard to an obligor and a child,

15 a court shall apply the following rules in determining

16 which order to recognize for purposes of continuing, exclu17 sive jurisdiction and enforcement:

18 ‘‘(1) If only one court has issued a child sup19 port order, the order of that court must be recog20 nized.

21 ‘‘(2) If two or more courts have issued child

22 support orders for the same obligor and child, and

23 only one of the courts would have continuing, exclu24 sive jurisdiction under this section, the order of that

25 court must be recognized.
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1 ‘‘(3) If two or more courts have issued child

2 support orders for the same obligor and child, and

3 only one of the courts would have continuing, exclu4 sive jurisdiction under this section, an order issued

5 by a court in the current home State of the child

6 must be recognized, but if an order has not been is7 sued in the current home State of the child, the

8 order most recently issued must be recognized.

9 ‘‘(4) If two or more courts have issued child

10 support orders for the same obligor and child, and

11 none of the courts would have continuing, exclusive

12 jurisdiction under this section, a court may issue a

13 child support order, which must be recognized.

14 ‘‘(5) The court that has issued an order recog15 nized under this subsection is the court having con16 tinuing, exclusive jurisdiction.’’;

17 (11) in subsection (g) (as so redesignated)—

18 (A) by striking ‘‘PRIOR’’ and inserting

19 ‘‘MODIFIED’’; and

20 (B) by striking ‘‘subsection (e)’’ and in21 serting ‘‘subsections (e) and (f)’’;

22 (12) in subsection (h) (as so redesignated)—

23 (A) in paragraph (2), by inserting ‘‘includ24 ing the duration of current payments and other

25 obligations of support’’ before the comma; and
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1 (B) in paragraph (3), by inserting ‘‘arrears

2 under’’ after ‘‘enforce’’; and

3 (13) by adding at the end the following:

4 ‘‘(i) REGISTRATION FOR MODIFICATION.—If there is

5 no individual contestant or child residing in the issuing

6 State, the party or support enforcement agency seeking

7 to modify, or to modify and enforce, a child support order

8 issued in another State shall register that order in a State

9 with jurisdiction over the nonmovant for the purpose of

10 modification.’’.

11 SEC. 333. STATE LAWS PROVIDING EXPEDITED PROCE12 DURES.

13 (a) STATE LAW REQUIREMENTS.—Section 466 (42

14 U.S.C. 666) is amended—

15 (1) in subsection (a)(2), in the first sentence, to

16 read as follows: ‘‘Expedited administrative and judi17 cial procedures (including the procedures specified in

18 subsection (c)) for establishing paternity and for es19 tablishing, modifying, and enforcing support obliga20 tions.’’; and

21 (2) by adding after subsection (b) the following

22 new subsection:

23 ‘‘(c) EXPEDITED PROCEDURES.—The procedures

24 specified in this subsection are the following:
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1 ‘‘(1) ADMINISTRATIVE ACTION BY STATE AGEN2 CY.—Procedures which give the State agency the au3 thority (and recognize and enforce the authority of

4 State agencies of other States), without the necessity

5 of obtaining an order from any other judicial or ad6 ministrative tribunal (but subject to due process

7 safeguards, including (as appropriate) requirements

8 for notice, opportunity to contest the action, and op9 portunity for an appeal on the record to an inde10 pendent administrative or judicial tribunal), to take

11 the following actions relating to establishment or en12 forcement of orders:

13 ‘‘(A) GENETIC TESTING.—To order genetic

14 testing for the purpose of paternity establish15 ment as provided in section 466(a)(5).

16 ‘‘(B) DEFAULT ORDERS.—To enter a de17 fault order, upon a showing of service of proc18 ess and any additional showing required by

19 State law—

20 ‘‘(i) establishing paternity, in the case

21 of any putative father who refuses to sub22 mit to genetic testing; and

23 ‘‘(ii) establishing or modifying a sup24 port obligation, in the case of a parent (or

25 other obligor or obligee) who fails to re-
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1 spond to notice to appear at a proceeding

2 for such purpose.

3 ‘‘(C) SUBPOENAS.—To subpoena any fi4 nancial or other information needed to estab5 lish, modify, or enforce an order, and to sanc6 tion failure to respond to any such subpoena.

7 ‘‘(D) ACCESS TO PERSONAL AND FINAN8 CIAL INFORMATION.—To obtain access, subject

9 to safeguards on privacy and information secu10 rity, to the following records (including auto11 mated access, in the case of records maintained

12 in automated data bases):

13 ‘‘(i) records of other State and local

14 government agencies, including—

15 ‘‘(I) vital statistics (including

16 records of marriage, birth, and di17 vorce);

18 ‘‘(II) State and local tax and rev19 enue records (including information

20 on residence address, employer, in21 come and assets);

22 ‘‘(III) records concerning real

23 and titled personal property;

24 ‘‘(IV) records of occupational and

25 professional licenses, and records con-
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1 cerning the ownership and control of

2 corporations, partnerships, and other

3 business entities;

4 ‘‘(V) employment security

5 records;

6 ‘‘(VI) records of agencies admin7 istering public assistance programs;

8 ‘‘(VII) records of the motor vehi9 cle department; and

10 ‘‘(VIII) corrections records; and

11 ‘‘(ii) certain records held by private

12 entities, including—

13 ‘‘(I) customer records of public

14 utilities and cable television compa15 nies; and

16 ‘‘(II) information (including in17 formation on assets and liabilities) on

18 individuals who owe or are owed sup19 port (or against or with respect to

20 whom a support obligation is sought)

21 held by financial institutions (subject

22 to limitations on liability of such enti23 ties arising from affording such ac24 cess).
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1 ‘‘(E) INCOME WITHHOLDING.—To order

2 income withholding in accordance with sub3 section (a)(1) and (b) of section 466.

4 ‘‘(F) CHANGE IN PAYEE.—(In cases where

5 support is subject to an assignment under sec6 tion 402(a)(26), 471(a)(17), or 1912, or to a

7 requirement to pay through the centralized col8 lections unit under section 454B) upon provid9 ing notice to obligor and obligee, to direct the

10 obligor or other payor to change the payee to

11 the appropriate government entity.

12 ‘‘(G) SECURE ASSETS TO SATISFY ARREAR13 AGES.—For the purpose of securing overdue

14 support—

15 ‘‘(i) to intercept and seize any peri16 odic or lump-sum payment to the obligor

17 by or through a State or local government

18 agency, including—

19 ‘‘(I) unemployment compensa20 tion, workers’ compensation, and

21 other benefits;

22 ‘‘(II) judgments and settlements

23 in cases under the jurisdiction of the

24 State or local government; and

25 ‘‘(III) lottery winnings;
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1 ‘‘(ii) to attach and seize assets of the

2 obligor held by financial institutions;

3 ‘‘(iii) to attach public and private re4 tirement funds in appropriate cases, as de5 termined by the Secretary; and

6 ‘‘(iv) to impose liens in accordance

7 with paragraph (a)(4) and, in appropriate

8 cases, to force sale of property and dis9 tribution of proceeds.

10 ‘‘(H) INCREASE MONTHLY PAYMENTS.—

11 For the purpose of securing overdue support, to

12 increase the amount of monthly support pay13 ments to include amounts for arrearages (sub14 ject to such conditions or restrictions as the

15 State may provide).

16 ‘‘(I) SUSPENSION OF DRIVERS’ LI17 CENSES.—To suspend drivers’ licenses of indi18 viduals owing past-due support, in accordance

19 with subsection (a)(16).

20 ‘‘(2) SUBSTANTIVE AND PROCEDURAL RULES.—

21 The expedited procedures required under subsection

22 (a)(2) shall include the following rules and author23 ity, applicable with respect to all proceedings to es24 tablish paternity or to establish, modify, or enforce

25 support orders:
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1 ‘‘(A) LOCATOR INFORMATION; PRESUMP2 TIONS CONCERNING NOTICE.—Procedures

3 under which—

4 ‘‘(i) the parties to any paternity or

5 child support proceedings are required

6 (subject to privacy safeguards) to file with

7 the tribunal before entry of an order, and

8 to update as appropriate, information on

9 location and identity (including Social Se10 curity number, residential and mailing ad11 dresses, telephone number, driver’s license

12 number, and name, address, and telephone

13 number of employer); and

14 ‘‘(ii) in any subsequent child support

15 enforcement action between the same par16 ties, the tribunal shall be authorized, upon

17 sufficient showing that diligent effort has

18 been made to ascertain such party’s cur19 rent location, to deem due process require20 ments for notice and service of process to

21 be met, with respect to such party, by de22 livery to the most recent residential or em23 ployer address so filed pursuant to clause

24 (i).
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1 ‘‘(B) STATEWIDE JURISDICTION.—Proce2 dures under which—

3 ‘‘(i) the State agency and any admin4 istrative or judicial tribunal with authority

5 to hear child support and paternity cases

6 exerts statewide jurisdiction over the par7 ties, and orders issued in such cases have

8 statewide effect; and

9 ‘‘(ii) (in the case of a State in which

10 orders in such cases are issued by local ju11 risdictions) a case may be transferred be12 tween jurisdictions in the State without

13 need for any additional filing by the peti14 tioner, or service of process upon the re15 spondent, to retain jurisdiction over the

16 parties.’’.

17 (c) EXCEPTIONS FROM STATE LAW REQUIRE18 MENTS.—Section 466(d) (42 U.S.C. 666(d)) is

19 amended—

20 (1) by striking ‘‘(d) If’’ and inserting the fol21 lowing:

22 ‘‘(d) EXEMPTIONS FROM REQUIREMENTS.—

23 ‘‘(1) IN GENERAL.—Subject to paragraph (2),

24 if’’; and
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1 (2) by adding at the end the following new

2 paragraph:

3 ‘‘(2) NONEXEMPT REQUIREMENTS.—The Sec4 retary shall not grant an exemption from the re5 quirements of—

6 ‘‘(A) subsection (a)(5) (concerning proce7 dures for paternity establishment);

8 ‘‘(B) subsection (a)(10) (concerning modi9 fication of orders);

10 ‘‘(C) subsection (a)(12) (concerning re11 cording of orders in the central State case reg12 istry);

13 ‘‘(D) subsection (a)(13) (concerning re14 cording of Social Security numbers);

15 ‘‘(E) subsection (a)(14) (concerning inter16 state enforcement); or

17 ‘‘(F) subsection (c) (concerning expedited

18 procedures), other than paragraph (1)(A) there19 of (concerning establishment or modification of

20 support amount).’’.

21 (d) AUTOMATION OF STATE AGENCY FUNCTIONS.—

22 Section 454A, as added by section 115(a)(2) of this Act

23 and as amended by sections 121 and 122(c) of this Act,

24 is amended by adding at the end the following new sub25 section:
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1 ‘‘(h) EXPEDITED ADMINISTRATIVE PROCEDURES.—

2 The automated system required under this section shall

3 be used, to the maximum extent feasible, to implement any

4 expedited administrative procedures required under sec5 tion 466(c).’’.

6 Subtitle E—Paternity

7 Establishment

8 SEC. 341. STATE LAWS CONCERNING PATERNITY ESTAB9 LISHMENT.

10 (a) STATE LAWS REQUIRED.—Section 466(a)(5) (42

11 U.S.C. 666(a)(5)) is amended—

12 (1) by striking ‘‘(5)’’ and inserting the follow13 ing:

14 ‘‘(5) PROCEDURES CONCERNING PATERNITY ES15 TABLISHMENT.—’’;

16 (2) in subparagraph (A)—

17 (A) by striking ‘‘(A)(i)’’ and inserting the

18 following:

19 ‘‘(A) ESTABLISHMENT PROCESS AVAIL20 ABLE FROM BIRTH UNTIL AGE EIGHTEEN.—

21 (i)’’; and

22 (B) by indenting clauses (i) and (ii) so

23 that the left margin of such clauses is 2 ems to

24 the right of the left margin of paragraph (4);

25 (3) in subparagraph (B)—
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1 (A) by striking ‘‘(B)’’ and inserting the

2 following:

3 ‘‘(B) PROCEDURES CONCERNING GENETIC

4 TESTING.—(i)’’;

5 (B) in clause (i), as redesignated, by in6 serting before the period ‘‘, where such request

7 is supported by a sworn statement (I) by such

8 party alleging paternity setting forth facts es9 tablishing a reasonable possibility of the req10 uisite sexual contact of the parties, or (II) by

11 such party denying paternity setting forth facts

12 establishing a reasonable possibility of the

13 nonexistence of sexual contact of the parties;’’;

14 (C) by inserting after and below clause (i)

15 (as redesignated) the following new clause:

16 ‘‘(ii) Procedures which require the State

17 agency, in any case in which such agency orders

18 genetic testing—

19 ‘‘(I) to pay costs of such tests, subject

20 to recoupment (where the State so elects)

21 from the punitive father if paternity is es22 tablished; and

23 ‘‘(II) to obtain additional testing in

24 any case where an original test result is
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1 disputed, upon request and advance pay2 ment by the disputing party.’’;

3 (4) by striking subparagraphs (C) and (D) and

4 inserting the following:

5 ‘‘(C) PATERNITY ACKNOWLEDGMENT.—(i)

6 Procedures for a simple civil process for volun7 tarily acknowledging paternity under which the

8 State must provide that, before a mother and a

9 putative father can sign an acknowledgment of

10 paternity, the putative father and the mother

11 must be given notice, orally, in writing, and in

12 a language that each can understand, of the al13 ternatives to, the legal consequences of, and the

14 rights (including, if 1 parent is a minor, any

15 rights afforded due to minority status) and re16 sponsibilities that arise from, signing the ac17 knowledgment.

18 ‘‘(ii) Such procedures must include a hos19 pital-based program for the voluntary acknowl20 edgment of paternity focusing on the period im21 mediately before or after the birth of a child.

22 ‘‘(iii) Such procedures must require the

23 State agency responsible for maintaining birth

24 records to offer voluntary paternity establish25 ment services.
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1 ‘‘(iv) The Secretary shall prescribe regula2 tions governing voluntary paternity establish3 ment services offered by hospitals and birth

4 record agencies. The Secretary shall prescribe

5 regulations specifying the types of other entities

6 that may offer voluntary paternity establish7 ment services, and governing the provision of

8 such services, which shall include a requirement

9 that such an entity must use the same notice

10 provisions used by, the same materials used by,

11 provide the personnel providing such services

12 with the same training provided by, and evalu13 ate the provision of such services in the same

14 manner as, voluntary paternity establishment

15 programs of hospitals and birth record agen16 cies.

17 ‘‘(v) Such procedures must require the

18 State and those required to establish paternity

19 to use only the affidavit developed under section

20 452(a)(7) for the voluntary acknowledgment of

21 paternity, and to give full faith and credit to

22 such an affidavit signed in any other State.

23 ‘‘(D) STATUS OF SIGNED PATERNITY

24 KNOWLEDGMENT.—(i) Procedures under which

25 a signed acknowledgment of paternity is consid-
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1 ered a legal finding of paternity, subject to the

2 right of any signatory to rescind the acknowl3 edgment within 60 days.

4 ‘‘(ii)(I) Procedures under which, after the

5 60-day period referred to in clause (i), a signed

6 acknowledgment of paternity may be challenged

7 in court only on the basis of fraud, duress, or

8 material mistake of fact, with the burden of

9 proof upon the challenger, and under which the

10 legal responsibilities (including child support

11 obligations) of any signatory arising from the

12 acknowledgment may not be suspended during

13 the challenge, except for good cause shown.

14 ‘‘(II) Procedures under which, after the

15 60-day period referred to in clause (i), a minor

16 who signs an acknowledgment of paternity

17 other than in the presence of a parent or court18 appointed guardian ad litem may rescind the

19 acknowledgment in a judicial or administrative

20 proceeding, until the earlier of—

21 ‘‘(aa) attaining the age of majority; or

22 ‘‘(bb) the date of the first judicial or

23 administrative proceeding brought (after

24 the signing) to establish a child support

25 obligation, visitation rights, or custody
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1 rights with respect to the child whose pa2 ternity is the subject of the acknowledg3 ment, and at which the minor is rep4 resented by a parent, guardian ad litem, or

5 attorney.’’;

6 (5) by striking subparagraph (E) and inserting

7 the following:

8 ‘‘(E) BAR ON ACKNOWLEDGMENT RATIFI9 CATION PROCEEDINGS.—Procedures under

10 which no judicial or administrative proceedings

11 are required or permitted to ratify an unchal12 lenged acknowledgment of paternity.’’;

13 (6) by striking subparagraph (F) and inserting

14 the following:

15 ‘‘(F) ADMISSIBILITY OF GENETIC TESTING

16 RESULTS.—Procedures—

17 ‘‘(i) requiring that the State admit

18 into evidence, for purposes of establishing

19 paternity, results of any genetic test that

20 is—

21 ‘‘(I) of a type generally acknowl22 edged, by accreditation bodies des23 ignated by the Secretary, as reliable

24 evidence of paternity; and
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1 ‘‘(II) performed by a laboratory

2 approved by such an accreditation

3 body;

4 ‘‘(ii) that any objection to genetic

5 testing results must be made in writing not

6 later than a specified number of days be7 fore any hearing at which such results may

8 be introduced into evidence (or, at State

9 option, not later than a specified number

10 of days after receipt of such results); and

11 ‘‘(iii) that, if no objection is made, the

12 test results are admissible as evidence of

13 paternity without the need for foundation

14 testimony or other proof of authenticity or

15 accuracy.’’; and

16 (7) by adding after subparagraph (H) the fol17 lowing new subparagraphs:

18 ‘‘(I) NO RIGHT TO JURY TRIAL.—Proce19 dures providing that the parties to an action to

20 establish paternity are not entitled to jury trial.

21 ‘‘(J) TEMPORARY SUPPORT ORDER BASED

22 ON PROBABLE PATERNITY IN CONTESTED

23 CASES.—Procedures which require that a tem24 porary order be issued, upon motion by a party,

25 requiring the provision of child support pending
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1 an administrative or judicial determination of

2 parentage, where there is clear and convincing

3 evidence of paternity (on the basis of genetic

4 tests or other evidence).

5 ‘‘(K) PROOF OF CERTAIN SUPPORT AND

6 PATERNITY ESTABLISHMENT COSTS.—Proce7 dures under which bills for pregnancy, child8 birth, and genetic testing are admissible as evi9 dence without requiring third-party foundation

10 testimony, and shall constitute prima facie evi11 dence of amounts incurred for such services and

12 testing on behalf of the child.

13 ‘‘(L) WAIVER OF STATE DEBTS FOR CO14 OPERATION.—At the option of the State, proce15 dures under which the tribunal establishing pa16 ternity and support has discretion to waive

17 rights to all or part of amounts owed to the

18 State (but not to the mother) for costs related

19 to pregnancy, childbirth, and genetic testing

20 and for public assistance paid to the family

21 where the father cooperates or acknowledges

22 paternity before or after genetic testing.

23 ‘‘(M) STANDING OF PUTATIVE FATHERS.—

24 Procedures ensuring that the putative father
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1 has a reasonable opportunity to initiate a pater2 nity action.’’.

3 (b) NATIONAL PATERNITY ACKNOWLEDGMENT AFFI4 DAVIT.—Section 452(a)(7) (42 U.S.C. 652(a)(7)) is

5 amended by inserting ‘‘, and develop an affidavit to be

6 used for the voluntary acknowledgment of paternity which

7 shall include the social security account number of each

8 parent’’ before the semicolon.

9 (c) TECHNICAL AMENDMENT.—Section 468 (42

10 U.S.C. 668) is amended by striking ‘‘a simple civil process

11 for voluntarily acknowledging paternity and’’.

12 SEC. 342. OUTREACH FOR VOLUNTARY PATERNITY ESTAB13 LISHMENT.

14 (a) STATE PLAN REQUIREMENT.—Section 454(23)

15 (42 U.S.C. 654(23)) is amended by adding at the end the

16 following new subparagraph:

17 ‘‘(C) publicize the availability and encour18 age the use of procedures for voluntary estab19 lishment of paternity and child support through

20 a variety of means, which—

21 ‘‘(i) include distribution of written

22 materials as health care facilities (includ23 ing hospitals and clinics), and other loca24 tions such as schools;
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1 ‘‘(ii) may include pre-natal programs

2 to educate expectant couples on individual

3 and joint rights and responsibilities with

4 respect to paternity (and may require all

5 expectant recipients of assistance under

6 part A to participate in such pre-natal pro7 grams, as an element of cooperation with

8 efforts to establish paternity and child sup9 port);

10 ‘‘(iii) include, with respect to each

11 child discharged from a hospital after birth

12 for whom paternity or child support has

13 not been established, reasonable follow-up

14 efforts (including at least one contact of

15 each parent whose whereabouts are known,

16 except where there is reason to believe

17 such follow-up efforts would put mother or

18 child at risk), providing—

19 ‘‘(I) in the case of a child for

20 whom paternity has not been estab21 lished, information on the benefits of

22 and procedures for establishing pater23 nity; and

24 ‘‘(II) in the case of a child for

25 whom paternity has been established
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1 but child support has not been estab2 lished, information on the benefits of

3 and procedures for establishing a

4 child support order, and an applica5 tion for child support services;’’.

6 (b) ENHANCED FEDERAL MATCHING.—Section

7 455(a)(1)(C) (42 U.S.C. 655(a)(1)(C)) is amended—

8 (1) by inserting ‘‘(i)’’ before ‘‘laboratory costs’’,

9 and

10 (2) by inserting before the semicolon ‘‘, and (ii)

11 costs of outreach programs designed to encourage

12 voluntary acknowledgment of paternity’’.

13 (c) EFFECTIVE DATES.—(1) The amendments made

14 by subsection (a) shall become effective October 1, 1997.

15 (2) The amendments made by subsection (b) shall be

16 effective with respect to calendar quarters beginning on

17 and after October 1, 1996.

18 Subtitle F—Establishment and

19 Modification of Support Orders

20 SEC. 351. NATIONAL CHILD SUPPORT GUIDELINES COMMIS21 SION.

22 (a) ESTABLISHMENT.—There is hereby established a

23 commission to be known as the ‘‘National Child Support

24 Guidelines Commission’’ (in this section referred to as the

25 ‘‘Commission’’).
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1 (b) GENERAL DUTIES.—The Commission shall de2 velop a national child support guideline for consideration

3 by the Congress that is based on a study of various guide4 line models, the benefits and deficiencies of such models,

5 and any needed improvements.

6 (c) MEMBERSHIP.—

7 (1) NUMBER; APPOINTMENT.—

8 (A) IN GENERAL.—The Commission shall

9 be composed of 12 individuals appointed jointly

10 by the Secretary of Health and Human Services

11 and the Congress, not later than January 15,

12 1997, of which—

13 (i) 2 shall be appointed by the Chair14 man of the Committee on Finance of the

15 Senate, and 1 shall be appointed by the

16 ranking minority member of the Commit17 tee;

18 (ii) 2 shall be appointed by the Chair19 man of the Committee on Ways and Means

20 of the House of Representatives, and 1

21 shall be appointed by the ranking minority

22 member of the Committee; and

23 (iii) 6 shall be appointed by the Sec24 retary of Health and Human Services.
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1 (B) QUALIFICATIONS OF MEMBERS.—

2 Members of the Commission shall have exper3 tise and experience in the evaluation and devel4 opment of child support guidelines. At least 1

5 member shall represent advocacy groups for

6 custodial parents, at least 1 member shall rep7 resent advocacy groups for noncustodial par8 ents, and at least 1 member shall be the direc9 tor of a State program under part D of title IV

10 of the Social Security Act.

11 (2) TERMS OF OFFICE.—Each member shall be

12 appointed for a term of 2 years. A vacancy in the

13 Commission shall be filed in the manner in which

14 the original appointment was made.

15 (d) COMMISSION POWERS, COMPENSATION, ACCESS

16 TO INFORMATION, AND SUPERVISION.—The first sentence

17 of subparagraph (C), the first and third sentences of sub18 paragraph (D), subparagraph (F) (except with respect to

19 the conduct of medical studies), clauses (ii) and (iii) of

20 subparagraph (G), and subparagraph (H) of section

21 1886(e)(6) of the Social Security Act shall apply to the

22 Commission in the same manner in which such provisions

23 apply to the Prospective Payment Assessment Commis24 sion.
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1 (e) REPORT.—Not later than 2 years after the ap2 pointment of members, the Commission shall submit to

3 the President, the Committee on Ways and Means of the

4 House of Representatives, and the Committee on Finance

5 of the Senate, a recommended national child support

6 guideline and a final assessment of issues relating to such

7 a proposed national child support guideline.

8 (f) TERMINATION.—The Commission shall terminate

9 6 months after the submission of the report described in

10 subsection (e).

11 SEC. 352. SIMPLIFIED PROCESS FOR REVIEW AND ADJUST12 MENT OF CHILD SUPPORT ORDERS.

13 (a) IN GENERAL.—Section 466(a)(10) (42 U.S.C.

14 666(a)(10)) is amended to read as follows:

15 ‘‘(10) PROCEDURES FOR MODIFICATION OF

16 SUPPORT ORDERS.—

17 ‘‘(A)(i) Procedures under which—

18 ‘‘(I) every 3 years, at the request of

19 either parent subject to a child support

20 order, the State shall review and, as appro21 priate, adjust the order in accordance with

22 the guidelines established under section

23 467(a) if the amount of the child support

24 award under the order differs from the

25 amount that would be awarded in accord-
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1 ance with such guidelines, without a re2 quirement for any other change in cir3 cumstances; and

4 ‘‘(II) upon request at any time of ei5 ther parent subject to a child support

6 order, the State shall review and, as appro7 priate, adjust the order in accordance with

8 the guidelines established under section

9 467(a) based on a substantial change in

10 the circumstances of either such parent.

11 ‘‘(ii) Such procedures shall require both

12 parents subject to a child support order to be

13 notified of their rights and responsibilities pro14 vided for under clause (i) at the time the order

15 is issued and in the annual information ex16 change form provided under subparagraph (B).

17 ‘‘(B) Procedures under which each child

18 support order issued or modified in the State

19 after the effective date of this subparagraph

20 shall require the parents subject to the order to

21 provide each other with a complete statement of

22 their respective financial condition annually on

23 a form which shall be established by the Sec24 retary and provided by the State. The Secretary
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1 shall establish regulations for the enforcement

2 of such exchange of information.’’.

3 Subtitle G—Enforcement of

4 Support Orders

5 SEC. 361. FEDERAL INCOME TAX REFUND OFFSET.

6 (a) CHANGED ORDER OF REFUND DISTRIBUTION

7 UNDER INTERNAL REVENUE CODE.—Section 6402(c) of

8 the Internal Revenue Code of 1986 is amended—

9 (1) by striking ‘‘The amount’’ and inserting

10 ‘‘(1) IN GENERAL.—The amount’’;

11 (2) by striking ‘‘paid to the State. A reduction’’

12 and inserting ‘‘paid to the State.

13 ‘‘(2) PRIORITIES FOR OFFSET.—A reduction’’;

14 (3) by striking ‘‘has been assigned’’ and insert15 ing ‘‘has not been assigned’’, and

16 (4) by striking ‘‘and shall be applied’’ and all

17 that follows and inserting ‘‘and shall thereafter be

18 applied to satisfy any past-due support that has

19 been so assigned.’’.

20 (b) ELIMINATION OF DISPARITIES IN TREATMENT

21 OF ASSIGNED AND NON-ASSIGNED ARREARAGES.—(1)

22 Section 464(a) (42 U.S.C. 664(a)) is amended—

23 (A) by striking ‘‘(a)’’ and inserting ‘‘(a) OFF24 SET AUTHORIZED.—’’;

25 (B) in paragraph (1)—
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1 (i) in the first sentence, by striking ‘‘which

2 has been assigned to such State pursuant to

3 section 402(a)(26) or section 471(a)(17)’’; and

4 (ii) in the second sentence, by striking ‘‘in

5 accordance with section 457 (b)(4) or (d)(3)’’

6 and inserting ‘‘as provided in paragraph (2)’’;

7 (C) in paragraph (2), to read as follows:

8 ‘‘(2) The State agency shall distribute amounts

9 paid by the Secretary of the Treasury pursuant to

10 paragraph (1)—

11 ‘‘(A) in accordance with section 457 (a)(4)

12 or (d)(3), in the case of past-due support as13 signed to a State pursuant to section

14 402(a)(26) or section 471(a)(17); and

15 ‘‘(B) to or on behalf of the child to whom

16 the support was owed, in the case of past-due

17 support not so assigned.’’;

18 (D) in paragraph (3)—

19 (i) by striking ‘‘or (2)’’ each place it ap20 pears; and

21 (ii) in subparagraph (B), by striking

22 ‘‘under paragraph (2)’’ and inserting ‘‘on ac23 count of past-due support described in para24 graph (2)(B)’’.
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1 (2) Section 464(b) (42 U.S.C. 664(b)) is

2 amended—

3 (A) by striking ‘‘(b)(1)’’ and inserting ‘‘(b)

4 REGULATIONS.—’’; and

5 (B) by striking paragraph (2).

6 (3) Section 464(c) (42 U.S.C. 664(c)) is

7 amended—

8 (A) by striking ‘‘(c)(1) Except as provided

9 in paragraph (2), as’’ and inserting ‘‘(c) DEFI10 NITION.—As’’; and

11 (B) by striking paragraphs (2) and (3).

12 (c) TREATMENT OF LUMP-SUM TAX REFUND

13 UNDER AFDC.—

14 (1) EXEMPTION FROM LUMP-SUM RULE.—Sec15 tion 402(a)(17) (42 U.S.C. 602(a)(17)) is amended

16 by adding at the end the following: ‘‘but this para17 graph shall not apply to income received by a family

18 that is attributable to a child support obligation

19 owed with respect to a member of the family and

20 that is paid to the family from amounts withheld

21 from a Federal income tax refund otherwise payable

22 to the person owing such obligation, to the extent

23 that such income is placed in a qualified asset ac24 count (as defined in section 406(j)) the total
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1 amounts in which, after such placement, does not

2 exceed $10,000;’’.

3 (2) QUALIFIED ASSET ACCOUNT DEFINED.—

4 Section 406 (42 U.S.C. 606), as amended by section

5 302(g)(2) of this Act, is amended by adding at the

6 end the following:

7 ‘‘(j)(1) The term ‘qualified asset account’ means a

8 mechanism approved by the State (such as individual re9 tirement accounts, escrow accounts, or savings bonds) that

10 allows savings of a family receiving aid to families with

11 dependent children to be used for qualified distributions.

12 ‘‘(2) The term ‘qualified distribution’ means a dis13 tribution from a qualified asset account for expenses di14 rectly related to 1 or more of the following purposes:

15 ‘‘(A) The attendance of a member of the family

16 at any education or training program.

17 ‘‘(B) The improvement of the employability (in18 cluding self-employment) of a member of the family

19 (such as through the purchase of an automobile).

20 ‘‘(C) The purchase of a home for the family.

21 ‘‘(D) A change of the family residence.’’.

22 (d) EFFECTIVE DATE.—The amendments made by

23 this section shall become effective October 1, 1999.
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1 SEC. 362. INTERNAL REVENUE SERVICE COLLECTION OF

2 ARREARS.

3 (a) AMENDMENT TO INTERNAL REVENUE CODE.—

4 Section 6305(a) of the Internal Revenue Code of 1986 is

5 amended—

6 (1) in paragraph (1), by inserting ‘‘except as

7 provided in paragraph (5)’’ after ‘‘collected’’;

8 (2) by striking ‘‘and’’ at the end of paragraph

9 (3);

10 (3) by striking the period at the end of para11 graph (4) and inserting a comma;

12 (4) by adding after paragraph (4) the following

13 new paragraph:

14 ‘‘(5) no additional fee may be assessed for ad15 justments to an amount previously certified pursu16 ant to such section 452(b) with respect to the same

17 obligor.’’; and

18 (5) by striking ‘‘Secretary of Health, Edu19 cation, and Welfare’’ each place it appears and in20 serting ‘‘Secretary of Health and Human Services’’.

21 (b) EFFECTIVE DATE.—The amendments made by

22 this section shall become effective October 1, 1997.

23 SEC. 363. AUTHORITY TO COLLECT SUPPORT FROM FED24 ERAL EMPLOYEES.

25 (a) CONSOLIDATION AND STREAMLINING OF AU26 THORITIES.—
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1 (1) Section 459 (42 U.S.C. 659) is amended in

2 the caption by inserting ‘‘INCOME WITHHOLDING,’’

3 before ‘‘GARNISHMENT’’.

4 (2) Section 459(a) (42 U.S.C. 659(a)) is

5 amended—

6 (A) by striking ‘‘(a)’’ and inserting ‘‘(a)

7 CONSENT TO SUPPORT ENFORCEMENT.—

8 (B) by striking ‘‘section 207’’ and insert9 ing ‘‘section 207 of this Act and 38 U.S.C.

10 5301’’; and

11 (C) by striking all that follows ‘‘a private

12 person,’’ and inserting ‘‘to withholding in ac13 cordance with State law pursuant to subsections

14 (a)(1) and (b) of section 466 and regulations of

15 the Secretary thereunder, and to any other legal

16 process brought, by a State agency administer17 ing a program under this part or by an individ18 ual obligee, to enforce the legal obligation of

19 such individual to provide child support or ali20 mony.’’.

21 (3) Section 459(b) (42 U.S.C. 659(b)) is

22 amended to read as follows:

23 ‘‘(b) CONSENT TO REQUIREMENTS APPLICABLE TO

24 PRIVATE PERSON.—Except as otherwise provided herein,

25 each entity specified in subsection (a) shall be subject,
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1 with respect to notice to withhold income pursuant to sub2 section (a)(1) or (b) of section 466, or to any other order

3 or process to enforce support obligations against an indi4 vidual (if such order or process contains or is accompanied

5 by sufficient data to permit prompt identification of the

6 individual and the moneys involved), to the same require7 ments as would apply if such entity were a private per8 son.’’.

9 (4) Section 459(c) (42 U.S.C. 659(c)) is redes10 ignated and relocated as paragraph (2) of subsection

11 (f), and is amended—

12 (A) by striking ‘‘responding to interrog13 atories pursuant to requirements imposed by

14 section 461(b)(3)’’ and inserting ‘‘taking ac15 tions necessary to comply with the requirements

16 of subsection (A) with regard to any individ17 ual’’; and

18 (B) by striking ‘‘any of his duties’’ and all

19 that follows and inserting ‘‘such duties.’’.

20 (5) Section 461 (42 U.S.C. 661) is amended by

21 striking subsection (b), and section 459 (42 U.S.C.

22 659) is amended by inserting after subsection (b)

23 (as added by paragraph (3) of this subsection) the

24 following:
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1 ‘‘(c) DESIGNATION OF AGENT; RESPONSE TO NOTICE

2 OR PROCESS.—(1) The head of each agency subject to the

3 requirements of this section shall—

4 ‘‘(A) designate an agent or agents to receive or5 ders and accept service of process; and

6 ‘‘(B) publish (i) in the appendix of such regula7 tions, (ii) in each subsequent republication of such

8 regulations, and (iii) annually in the Federal Reg9 ister, the designation of such agent or agents, identi10 fied by title of position, mailing address, and tele11 phone number.’’.

12 (6) Section 459 (42 U.S.C. 659) is amended by

13 striking subsection (d) and by inserting after sub14 section (c)(1) (as added by paragraph (5) of this

15 subsection) the following:

16 ‘‘(2) Whenever an agent designated pursuant to para17 graph (1) receives notice pursuant to subsection (a)(1) or

18 (b) of section 466, or is effectively served with any order,

19 process, or interrogatories, with respect to an individual’s

20 child support or alimony payment obligations, such agent

21 shall—

22 ‘‘(A) as soon as possible (but not later than fif23 teen days) thereafter, send written notice of such no24 tice or service (together with a copy thereof) to such
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1 individual at his duty station or last-known home

2 address;

3 ‘‘(B) within 30 days (or such longer period as

4 may be prescribed by applicable State law) after re5 ceipt of a notice pursuant to subsection (a)(1) or (b)

6 of section 466, comply with all applicable provisions

7 of such section 466; and

8 ‘‘(C) within 30 days (or such longer period as

9 may be prescribed by applicable State law) after ef10 fective service of any other such order, process, or

11 interrogatories, respond thereto.’’.

12 (7) Section 461 (42 U.S.C. 661) is amended by

13 striking subsection (c), and section 459 (42 U.S.C.

14 659) is amended by inserting after subsection (c) (as

15 added by paragraph (5) and amended by paragraph

16 (6) of this subsection) the following:

17 ‘‘(d) PRIORITY OF CLAIMS.—In the event that a gov18 ernmental entity receives notice or is served with process,

19 as provided in this section, concerning amounts owed by

20 an individual to more than one person—

21 ‘‘(1) support collection under section 466(b)

22 must be given priority over any other process, as

23 provided in section 466(b)(7);

24 ‘‘(2) allocation of moneys due or payable to an

25 individual among claimants under section 466(b)
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1 shall be governed by the provisions of such section

2 466(b) and regulations thereunder; and

3 ‘‘(3) such moneys as remain after compliance

4 with subparagraphs (A) and (B) shall be available to

5 satisfy any other such processes on a first-come,

6 first-served basis, with any such process being satis7 fied out of such moneys as remain after the satisfac8 tion of all such processes which have been previously

9 served.’’.

10 (8) Section 459(e) (42 U.S.C. 659(e)) is

11 amended by striking ‘‘(e)’’ and inserting the follow12 ing:

13 ‘‘(e) NO REQUIREMENT TO VARY PAY CYCLES.—’’.

14 (9) Section 459(f) (42 U.S.C. 659(f)) is amend15 ed by striking ‘‘(f)’’ and inserting the following:

16 ‘‘(f) RELIEF FROM LIABILITY.—(1)’’.

17 (10) Section 461(a) (42 U.S.C. 661(a)) is re18 designated and relocated as section 459(g), and is

19 amended—

20 (A) by striking ‘‘(g)’’ and inserting the follow21 ing:

22 ‘‘(g) REGULATIONS.—’’; and

23 (B) by striking ‘‘section 459’’ and inserting

24 ‘‘this section’’.
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1 (11) Section 462 (42 U.S.C. 662) is amended

2 by striking subsection (f), and section 459 (42

3 U.S.C. 659) is amended by inserting the following

4 after subsection (g) (as added by paragraph (10) of

5 this subsection):

6 ‘‘(h) MONEYS SUBJECT TO PROCESS.—(1) Subject to

7 subsection (i), moneys paid or payable to an individual

8 which are considered to be based upon remuneration for

9 employment, for purposes of this section—

10 ‘‘(A) consist of—

11 ‘‘(i) compensation paid or payable for per12 sonal services of such individual, whether such

13 compensation is denominated as wages, salary,

14 commission, bonus, pay, allowances, or other15 wise (including severance pay, sick pay, and in16 centive pay);

17 ‘‘(ii) periodic benefits (including a periodic

18 benefit as defined in section 228(h)(3)) or other

19 payments—

20 ‘‘(I) under the insurance system es21 tablished by title II;

22 ‘‘(II) under any other system or fund

23 established by the United States which

24 provides for the payment of pensions, re25 tirement or retired pay, annuities, depend-
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1 ents’ or survivors’ benefits, or similar

2 amounts payable on account of personal

3 services performed by the individual or any

4 other individual;

5 ‘‘(III) as compensation for death

6 under any Federal program;

7 ‘‘(IV) under any Federal program es8 tablished to provide ‘black lung’ benefits;

9 or

10 ‘‘(V) by the Secretary of Veterans Af11 fairs as pension, or as compensation for a

12 service-connected disability or death (ex13 cept any compensation paid by such Sec14 retary to a former member of the Armed

15 Forces who is in receipt of retired or re16 tainer pay if such former member has

17 waived a portion of his retired pay in order

18 to receive such compensation); and

19 ‘‘(iii) worker’s compensation benefits paid

20 under Federal or State law; but

21 ‘‘(B) do not include any payment—

22 ‘‘(i) by way of reimbursement or otherwise,

23 to defray expenses incurred by such individual

24 in carrying out duties associated with his em25 ployment; or
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1 ‘‘(ii) as allowances for members of the uni2 formed services payable pursuant to chapter 7

3 of title 37, United States Code, as prescribed

4 by the Secretaries concerned (defined by section

5 101(5) of such title) as necessary for the effi6 cient performance of duty.’’.

7 (12) Section 462(g) (42 U.S.C. 662(g)) is re8 designated and relocated as section 459(i) (42

9 U.S.C. 659(i)).

10 (13)(A) Section 462 (42 U.S.C. 662) is

11 amended—

12 (i) in subsection (e)(1), by redesignating

13 subparagraphs (A), (B), and (C) as clauses (i),

14 (ii), and (iii); and

15 (ii) in subsection (e), by redesignating

16 paragraphs (1) and (2) as subparagraphs (A)

17 and (B).

18 (B) Section 459 (42 U.S.C. 659) is amended by

19 adding at the end the following:

20 ‘‘(j) DEFINITIONS.—For purposes of this

21 section—’’.

22 (C) Subsections (a) through (e) of section 462

23 (42 U.S.C. 662), as amended by subparagraph (A)

24 of this paragraph, are relocated and redesignated as

25 paragraphs (1) through (4), respectively of section
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1 459(j) (as added by subparagraph (B) of this para2 graph, (42 U.S.C. 659(j)), and the left margin of

3 each of such paragraphs (1) through (4) is indented

4 2 ems to the right of the left margin of subsection

5 (i) (as added by paragraph (12) of this subsection).

6 (b) CONFORMING AMENDMENTS.—

7 (1) TO PART D OF TITLE IV.—Sections 461 and

8 462 (42 U.S.C. 661), as amended by subsection (a)

9 of this section, are repealed.

10 (2) TO TITLE 5, UNITED STATES CODE.—Sec11 tion 5520a of title 5, United States Code, is amend12 ed, in subsections (h)(2) and (i), by striking ‘‘sec13 tions 459, 461, and 462 of the Social Security Act

14 (42 U.S.C. 659, 661, and 662)’’ and inserting ‘‘sec15 tion 459 of the Social Security Act (42 U.S.C.

16 659)’’.

17 (c) MILITARY RETIRED AND RETAINER PAY.—(1)

18 DEFINITION OF COURT.—Section 1408(a)(1) of title 10,

19 United States Code, is amended—

20 (A) by striking ‘‘and’’ at the end of subpara21 graph (B);

22 (B) by striking the period at the end of sub23 paragraph (C) and inserting ‘‘; and’’; and

24 (C) by adding after subparagraph (C) the fol25 lowing new paragraph:
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1 ‘‘(D) any administrative or judicial tribunal of

2 a State competent to enter orders for support or

3 maintenance (including a State agency administering

4 a State program under part D of title IV of the So5 cial Security Act).’’;

6 (2) DEFINITION OF COURT ORDER.—Section

7 1408(a)(2) of such title is amended by inserting ‘‘or a

8 court order for the payment of child support not included

9 in or accompanied by such a decree of settlement,’’ before

10 ‘‘which—’’.

11 (3) PUBLIC PAYEE.—Section 1408(d) of such title is

12 amended—

13 (A) in the heading, by striking ‘‘to spouse’’ and

14 inserting ‘‘to (or for benefit of)’’; and

15 (B) in paragraph (1), in the first sentence, by

16 inserting ‘‘(or for the benefit of such spouse or

17 former spouse to a State central collections unit or

18 other public payee designated by a State, in accord19 ance with part D of title IV of the Social Security

20 Act, as directed by court order, or as otherwise di21 rected in accordance with such part D)’’ before ‘‘in

22 an amount sufficient’’.

23 (4) RELATIONSHIP TO PART D OF TITLE IV.—Sec24 tion 1408 of such title is amended by adding at the end

25 the following new subsection:
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1 ‘‘(j) RELATIONSHIP TO OTHER LAWS.—In any case

2 involving a child support order against a member who has

3 never been married to the other parent of the child, the

4 provisions of this section shall not apply, and the case

5 shall be subject to the provisions of section 459 of the

6 Social Security Act.’’.

7 (d) EFFECTIVE DATE.—The amendments made by

8 this section shall become effective 6 months after the date

9 of the enactment of this Act.

10 SEC. 364. ENFORCEMENT OF CHILD SUPPORT OBLIGA11 TIONS OF MEMBERS OF THE ARMED FORCES.

12 (a) AVAILABILITY OF LOCATOR INFORMATION.—

13 (1) MAINTENANCE OF ADDRESS INFORMA14 TION.—The Secretary of Defense shall establish a

15 centralized personnel locator service that includes

16 the address of each member of the Armed Forces

17 under the jurisdiction of the Secretary. Upon re18 quest of the Secretary of Transportation, addresses

19 for members of the Coast Guard shall be included in

20 the centralized personnel locator service.

21 (2) TYPE OF ADDRESS.—

22 (A) RESIDENTIAL ADDRESS.—Except as

23 provided in subparagraph (B), the address for

24 a member of the Armed Forces shown in the lo-
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1 cator service shall be the residential address of

2 that member.

3 (B) DUTY ADDRESS.—The address for a

4 member of the Armed Forces shown in the loca5 tor service shall be the duty address of that

6 member in the case of a member—

7 (i) who is permanently assigned overseas,

8 to a vessel, or to a routinely deployable unit; or

9 (ii) with respect to whom the Secretary

10 concerned makes a determination that the

11 member’s residential address should not be dis12 closed due to national security or safety con13 cerns.

14 (3) UPDATING OF LOCATOR INFORMATION.—

15 Within 30 days after a member listed in the locator

16 service establishes a new residential address (or a

17 new duty address, in the case of a member covered

18 by paragraph (2)(B)), the Secretary concerned shall

19 update the locator service to indicate the new ad20 dress of the member.

21 (4) AVAILABILITY OF INFORMATION.—The Sec22 retary of Defense shall make information regarding

23 the address of a member of the Armed Forces listed

24 in the locator service available, on request, to the

25 Federal Parent Locator Service.
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1 (b) FACILITATING GRANTING OF LEAVE FOR AT2 TENDANCE AT HEARINGS.—

3 (1) REGULATIONS.—The Secretary of each

4 military department, and the Secretary of Transpor5 tation with respect to the Coast Guard when it is

6 not operating as a service in the Navy, shall pre7 scribe regulations to facilitate the granting of leave

8 to a member of the Armed Forces under the juris9 diction of that Secretary in a case in which—

10 (A) the leave is needed for the member to

11 attend a hearing described in paragraph (2);

12 (B) the member is not serving in or with

13 a unit deployed in a contingency operation (as

14 defined in section 101 of title 10, United States

15 Code); and

16 (C) the exigencies of military service (as

17 determined by the Secretary concerned) do not

18 otherwise require that such leave not be granted

19 (2) COVERED HEARINGS.—Paragraph (1) ap20 plies to a hearing that is conducted by a court or

21 pursuant to an administrative process established

22 under State law, in connection with a civil action—

23 (A) to determine whether a member of the

24 Armed Forces is a natural parent of a child; or
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1 (B) to determine an obligation of a mem2 ber of the Armed Forces to provide child sup3 port.

4 (3) DEFINITIONS.—for purposes of this sub5 section;

6 (A) The term ‘‘court’’ has the meaning

7 given that term in section 1408(a) of title 10,

8 United States Code.

9 (B) The term ‘‘child support’’ has the

10 meaning given such term in section 462 of the

11 Social Security Act (42 U.S.C. 662).

12 (c) PAYMENT OF MILITARY RETIRED PAY IN COM13 PLIANCE WITH CHILD SUPPORT ORDERS.—

14 (1) DATE OF CERTIFICATION OF COURT

15 ORDER.—Section 1408 of title 10, United States

16 Code, is amended—

17 (A) by redesignating subsection (i) as sub18 section (j); and

19 (B) by inserting after subsection (h) the

20 following new subsection (i):

21 ‘‘(i) CERTIFICATION DATE.—It is not necessary that

22 the date of a certification of the authenticity or complete23 ness of a copy of a court order or an order of an adminis24 trative process established under State law for child sup25 port received by the Secretary concerned for the purposes
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1 of this section be recent in relation to the date of receipt

2 by the Secretary.’’.

3 (2) PAYMENTS CONSISTENT WITH ASSIGN4 MENTS OF RIGHTS TO STATES.—Section 1408(d)(1)

5 of such title is amended by inserting after the first

6 sentence the following: ‘‘In the case of a spouse or

7 former spouse who, pursuant to section 402(a)(26)

8 of the Social Security Act (42 U.S.C. 602(26)), as9 signs to a State the rights of the spouse or former

10 spouse to receive support, the Secretary concerned

11 may make the child support payments referred to in

12 the preceding sentence to that State in amounts con13 sistent with that assignment of rights.’’.

14 (3) ARREARAGES OWED BY MEMBERS OF THE

15 UNIFORMED SERVICES.—Section 1408(d) of such

16 title is amended by adding at the end the following

17 new paragraph:

18 ‘‘(6) In the case of a court order or an order of an

19 administrative process established under State law for

20 which effective service is made on the Secretary concerned

21 on or after the date of the enactment of this paragraph

22 and which provides for payments from the disposable re23 tired pay of a member to satisfy the amount of child sup24 port set forth in the order, the authority provided in para25 graph (1) to make payments from the disposable retired
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1 pay of a member to satisy the amount of child support

2 set forth in a court or an order of an administrative proc3 ess established under State law shall apply to payment of

4 any amount of child support arrearages set forth in that

5 order as well as to amounts of child support that currently

6 become due.’’.

7 SEC. 365. MOTOR VEHICLE LIENS.

8 Section 466(a)(4) (42 U.S.C. 666(a)(4)) is amend9 ed—

10 (1) by striking ‘‘(4) Procedures’’ and inserting

11 the following:

12 ‘‘(4) LIENS.—

13 ‘‘(A) IN GENERAL.—Procedures’’; and

14 (2) by adding at the end the following new sub15 paragraph:

16 ‘‘(B) MOTOR VEHICLE LIENS.—Procedures

17 for placing liens for arrears of child support on

18 motor vehicle titles of individuals owing such

19 arrears equal to or exceeding two months of

20 support, under which—

21 ‘‘(i) any person owed such arrears

22 may place such a lien;

23 ‘‘(ii) the State agency administering

24 the program under this part, shall system25 atically place such liens;
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1 ‘‘(iii) expedited methods are provided

2 for—

3 ‘‘(I) ascertaining the amount of

4 arrears;

5 ‘‘(II) affording the person owing

6 the arrears or other titleholder to con7 test the amount of arrears or to ob8 tain a release upon fulfilling the sup9 port obligation;

10 ‘‘(iv) such a lien has precedence over

11 all other encumbrances on a vehicle title

12 other than a purchase money security in13 terest; and

14 ‘‘(v) the individual or State agency

15 owed the arrears may execute on, seize,

16 and sell the property in accordance with

17 State law.’’.

18 SEC. 366. VOIDING OF FRAUDULENT TRANSFERS.

19 Section 466(a) (42 U.S.C. 666(a)), as amended by

20 sections 301(a), 328(a), and 331 of this Act, is amended

21 by adding at the end the following new paragraph:

22 ‘‘(15) FRAUDULENT TRANSFERS.—Procedures

23 under which—

24 ‘‘(A) the State has in effect—
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1 ‘‘(i) the Uniform Fraudulent Convey2 ance Act of 1981,

3 ‘‘(ii) the Uniform Fraudulent Trans4 fer Act of 1984, or

5 ‘‘(iii) another law, specifying indicia of

6 fraud which create a prima facie case that

7 a debtor transferred income or property to

8 avoid payment to a child support creditor,

9 which the Secretary finds affords com10 parable rights to child support creditors;

11 and

12 ‘‘(B) in any case in which the State knows

13 of a transfer by a child support debtor with re14 spect to which such a prima facie case is estab15 lished, the State must—

16 ‘‘(i) seek to void such transfer; or

17 ‘‘(ii) obtain a settlement in the best

18 interests of the child support creditor.’’.

19 SEC. 367. STATE LAW AUTHORIZING SUSPENSION OF LI20 CENSES.

21 Section 466(a) (42 U.S.C. 666(a)), as amended by

22 sections 301(a), 328(a), 331, and 166 of this Act, is

23 amended by adding at the end the following new para24 graph:
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1 ‘‘(16) AUTHORITY TO WITHHOLD OR SUSPEND

2 LICENSES.—Procedures under which the State has

3 (and uses in appropriate cases) authority (subject to

4 appropriate due process safeguards) to withhold or

5 suspend, or to restrict the use of driver’s licenses,

6 professional and occupational licenses, and rec7 reational licenses of individuals owing overdue child

8 support or failing, after receiving appropriate notice,

9 to comply with subpoenas or warrants relating to

10 paternity or child support proceedings.’’.

11 SEC. 368. REPORTING ARREARAGES TO CREDIT BUREAUS.

12 Section 466(a)(7) (42 U.S.C. 666(a)(7)) is amended

13 to read as follows:

14 ‘‘(7) REPORTING ARREARAGES TO CREDIT BU15 REAUS.—(A) Procedures (subject to safeguards pur16 suant to subparagraph (B)) requiring the State to

17 report periodically to consumer reporting agencies

18 (as defined in section 603(f) of the Fair Credit Re19 porting Act (15 U.S.C. 1681a(f)) the name of any

20 absent parent who is delinquent by 90 days or more

21 in the payment of support, and the amount of over22 due support owed by such parent.

23 ‘‘(B) Procedures ensuring that, in carrying out

24 subparagraph (A), information with respect to an

25 absent parent is reported—
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1 ‘‘(i) only after such parent has been af2 forded all due process required under State law,

3 including notice and a reasonable opportunity

4 to contest the accuracy of such information;

5 and

6 ‘‘(ii) only to an entity that has furnished

7 evidence satisfactory to the State that the en8 tity is a consumer reporting agency.’’.

9 SEC. 389. EXTENDED STATUTE OF LIMITATION FOR COL10 LECTION OF ARREARAGES.

11 (a) AMENDMENTS.—Section 466(a)(9) (42 U.S.C.

12 666(a)(9)) is amended—

13 (1) by striking ‘‘(9) Procedures’’ and inserting

14 the following:

15 ‘‘(9) LEGAL TREATMENT OF ARREARS.—

16 ‘‘(A) FINALITY.—Procedures’’;

17 (2) by redesignating subparagraphs (A), (B),

18 and (C) as clauses (i), (ii), and (iii), respectively,

19 and by indenting each of such clauses 2 additional

20 ems to the right; and

21 (3) by adding after and below subparagraph

22 (A), as redesignated, the following new subpara23 graph:

24 ‘‘(B) STATUTE OF LIMITATIONS.—Proce25 dures under which the statute of limitations on
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1 any arrearages of child support extends at least

2 until the child owed such support is 30 years of

3 age.’’.

4 (b) APPLICATION OF REQUIREMENT.—The amend5 ment made by this section shall not be read to require

6 any State law to revive any payment obligation which had

7 lapsed prior to the effective date of such State law.

8 SEC. 370. CHARGES FOR ARREARAGES.

9 (A) STATE LAW REQUIREMENT.—Section 466(a) (42

10 U.S.C. 666(a)), as amended by section 301(a), 328(a),

11 331, 366, and 367 of this Act, is amended by adding at

12 the end the following new paragraph:

13 ‘‘(17) CHARGES FOR ARREARAGES.—Proce14 dures providing for the calculation and collection of

15 interest or penalties for arrearages of child support,

16 and for distribution of such interest or penalties col17 lected for the benefit of the child (except where the

18 right to support has been assigned to the State).’’.

19 (b) REGULATIONS.—The Secretary of Health and

20 Human Services shall establish by regulation a rule to re21 solve choice of law conflicts arising in the implementation

22 of the amendment made by subsection (a).

23 (c) CONFORMING AMENDMENT.—Section 454(21)

24 (42 U.S.C. 654(21)) is repealed.
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1 (d) EFFECTIVE DATE.—The amendments made by

2 this section shall be effective with respect to arrearages

3 accruing on or after October 1, 1998.

4 SEC. 371. DENIAL OF PASSPORTS FOR NONPAYMENT OF

5 CHILD SUPPORT.

6 (a) HHS CERTIFICATION PROCEDURE.—

7 (1) SECRETARIAL RESPONSIBILITY.—Section

8 452 (42 U.S.C. 652), as amended by sections

9 315(a)(3) and 317 of this Act, is amended by adding

10 at the end the following new subsection:

11 ‘‘(l) CERTIFICATIONS FOR PURPOSES OF PASSPORT

12 RESTRICTIONS.—

13 ‘‘(1) IN GENERAL.—Where the Secretary re14 ceives a certification by a State agency in accord15 ance with the requirements of section 454(28) that

16 an individual owes arrearages of child support in an

17 amount exceeding $5,000 or in an amount exceeding

18 24 months’ worth of child support, the Secretary

19 shall transmit such certification to the Secretary of

20 State for action (with respect to denial, revocation,

21 or limitation of passports) pursuant to section

22 171(b) of this Act.

23 ‘‘(2) LIMIT ON LIABILITY.—The Secretary shall

24 not be liable to an individual for any action with re-
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1 spect to a certification by a State agency under this

2 section.’’.

3 (2) STATE CSE AGENCY RESPONSIBILITY.—Sec4 tion 454 (42 U.S.C. 654), as amended by sections

5 304(a), 314(b), and 322(a) of this Act, is amend6 ed—

7 (A) by striking ‘‘and’’ at the end of para8 graph (26);

9 (B) by striking the period at the end of

10 paragraph (27) and inserting ‘‘; and’’; and

11 (C) by adding after paragraph (27) the fol12 lowing new paragraph:

13 ‘‘(28) provide that the State agency will have in

14 effect a procedure (which may be combined with the

15 procedure for tax refund offset under section 464)

16 for certifying to the Secretary, for purposes of the

17 procedure under section 452(l) (concerning denial of

18 passports) determinations that individuals owe ar19 rearages of child support in an amount exceeding

20 $5,000 or in an amount exceeding 24 months’ worth

21 of child support, under which procedure—

22 ‘‘(A) each individual concerned is afforded

23 notice of such determination and the con24 sequences thereof, and an opportunity to con25 test the determination; and
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1 ‘‘(B) the certification by the State agency

2 is furnished to the Secretary in such format,

3 and accompanied by such supporting docu4 mentation, as the Secretary may require.’’.

5 (b) STATE DEPARTMENT PROCEDURE FOR DENIAL

6 OF PASSPORTS.—

7 (1) IN GENERAL.—The Secretary of State,

8 upon certification by the Secretary of Health and

9 Human Services, in accordance with section 452(l)

10 of the Social Security Act, that an individual owes

11 arrearages of child support in excess of $5,000, shall

12 refuse to issue a passport to such individual, and

13 may revoke, restrict, or limit a passport issued pre14 viously to such individual.

15 (2) LIMIT ON LIABILITY.—The Secretary of

16 State shall not be liable to an individual for any ac17 tion with respect to a certification by a State agency

18 under this section.

19 (c) EFFECTIVE DATE.—This section and the amend20 ments made by this section shall become effective October

21 1, 1996.

22 SEC. 372. INTERNATIONAL CHILD SUPPORT ENFORCE23 MENT.

24 (A) SENSE OF THE CONGRESS THAT THE UNITED

25 STATES SHOULD RATIFY THE UNITED NATIONS CON-
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1 VENTION OF 1956.—It is the sense of the Congress that

2 the United States should ratify the United Nations Con3 vention of 1956.

4 (b) TREATMENT OF INTERNATIONAL CHILD SUP5 PORT CASES AS INTERSTATE CASES.—Section 454 (42

6 U.S.C. 654), as amended by sections 304(a), 314(b),

7 322(a), and 371(a)(2) of this Act, is amended—

8 (1) by striking ‘‘and’’ at the end of paragraph

9 (27);

10 (2) by striking the period at the end of para11 graph (28) and inserting ‘‘; and’’; and

12 (3) by inserting after paragraph (28) the fol13 lowing:

14 ‘‘(29) provide that the State must treat inter15 national child support cases in the same manner as

16 the State treats interstate child support cases.’’.

17 Subtitle H—Medical Support

18 SEC. 381. TECHNICAL CORRECTION TO ERISA DEFINITION

19 OF MEDICAL CHILD SUPPORT ORDER.

20 (a) GENERAL.—Section 609(a)(2)(B) of the Em21 ployee Retirement Income Security Act of 1974 (29

22 U.S.C. 1169(a)(2)(B)) is amended—

23 (1) by striking ‘‘issued by a court of competent

24 jurisdiction’’;
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1 (2) by striking the period at the end of clause

2 (ii) and inserting a comma; and

3 (3) by adding, after and below clause (ii), the

4 following: ‘‘if such judgment, decree, or order (I) is

5 issued by a court of competent jurisdiction or (II) is

6 issued by an administrative adjudicator and has the

7 force and effect of law under applicable State law.’’.

8 (b) EFFECTIVE DATE.—

9 (1) IN GENERAL.—The amendments made by

10 this section shall take effect on the date of the en11 actment of this Act.

12 (2) PLAN AMENDMENTS NOT REQUIRED UNTIL

13 JANUARY 1, 1996.—Any amendment to a plan re14 quired to be made by an amendment made by this

15 section shall not be required to be made before the

16 first plan year beginning on or after January 1,

17 1996, if—

18 (A) during the period after the date before

19 the date of the enactment of this Act and be20 fore such first plan year, the plan is operated

21 in accordance with the requirements of the

22 amendments made by this section, and

23 (B) such plan amendment applies retro-ac24 tively to the period after the date before the
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1 date of the enactment of this Act and before

2 such first plan year.

3 A plan shall not be treated as failing to be operated

4 in accordance with the provisions of the plan merely

5 because it operates in accordance with this para6 graph.

7 Subtitle I—Effect of Enactment

8 SEC. 391. EFFECTIVE DATES.

9 (A) IN GENERAL.—Except as otherwise specifically

10 provided (but subject to subsections (b) and (c))—

11 (1) provisions of this title requiring enactment

12 or amendment of State laws under section 466 of

13 the Social Security Act, or revision of State plans

14 under section 454 of such Act, shall be effective with

15 respect to periods beginning on and after October 1,

16 1996; and

17 (2) all other provisions of this title shall become

18 effective upon enactment.

19 (b) GRACE PERIOD FOR STATE LAW CHANGES.—The

20 provisions of this title shall become effective with respect

21 to a State on the later of—

22 (1) the date specified in this title, or

23 (2) the effective date of laws enacted by the leg24 islature of such State implementing such provisions,

25 but in no event later than the first day of the first
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1 calender quarter beginning after the close of the

2 first regular session of the State legislature that be3 gins after the date of enactment of this Act. For

4 purposes of the previous sentence, in the case of a

5 State that has a 2-year legislative session, each year

6 of such session shall be deemed to be a separate reg7 ular session of the State legislature.

8 (c) GRACE PERIOD FOR STATE CONSTITUTIONAL

9 AMENDMENT.—A State shall not be found out of compli10 ance with any requirement enacted by this title if it is

11 unable to comply without amending the State constitution

12 until the earlier of—

13 (1) the date one year after the effective date of

14 the necessary State constitutional amendment, or

15 (2) the date five years after enactment of this

16 title.

17 SEC. 392. SEVERABILITY.

18 If any provision of this title or the application thereof

19 to any person or circumstance is held invalid, the invalid20 ity shall not affect other provisions or applications of this

21 title which can be given effect without regard to the invalid

22 provision or application, and to this end the provisions of

23 this title shall be severable.
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1 TITLE IV—REAUTHORIZATION

2 OF CHILD CARE AND DEVEL3 OPMENT BLOCK GRANT

4 SEC. 431. REAUTHORIZATION OF CHILD CARE AND DEVEL5 OPMENT BLOCK GRANT.

6 Section 658B of the Child Care and Development

7 Block Grant Act of 1990 (42 U.S.C. 9858) is amended

8 to read as follows:

9 ‘‘SEC. 658B. AUTHORIZATION OF APPROPRIATIONS.

10 ‘‘There are authorized to be appropriated to carry out

11 this subchapter—

12 ‘‘(1) such sums as may be necessary for fiscal

13 year 1995;

14 ‘‘(2) $1,000,000,000 for fiscal year 1996;

15 ‘‘(3) $1,500,000,000 for fiscal year 1997;

16 ‘‘(4) $2,000,000,000 for fiscal year 1998;

17 ‘‘(5) $2,500,000,000 for fiscal year 1999;

18 ‘‘(6) $3,000,000,000 for fiscal year 2000; and

19 ‘‘(7) $3,500,000,000 for fiscal year 2001.’’.
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1 TITLE V—AMENDMENTS TO THE

2 INTERNAL REVENUE CODE

3 SEC. 501. INCREASE IN TOP MARGINAL RATE UNDER SEC4 TION 11.

5 (a) IN GENERAL.—The following provisions of the In6 ternal Revenue Code of 1986 are amended by striking

7 ‘‘35’’ and inserting ‘‘36.25’’:

8 (1) Section 11(b)(1).

9 (2) Section 11(b)(2).

10 (3) Section 1201(a).

11 (4) Paragraphs (1) and (2) of section 1445(e)

12 (b) EFFECTIVE DATE.—The amendments made by

13 this section shall apply to taxable years beginning on or

14 after October 1, 1996, except that the amendment made

15 by subsection (a)(4) shall take effect on October 1, 1996.

16 TITLE VI—EFFECTIVE DATE

17 SEC. 601. EFFECTIVE DATE.

18 Except as otherwise provided in this Act, this Act and

19 the amendments made by this Act shall take effect on

20 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 sup-
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port and parentage court orders; and for other purposes.’’.

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