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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 315 Introduced in House (IH)]

104th CONGRESS
  1st Session
                                H. R. 315

  To offer States a national welfare reform option and incentives to 
   implement the welfare reform option, to strengthen child support 
 enforcement, to provide all States with the flexibility and resources 
  necessary to promote work and self-sufficiency, to expand access to 
             affordable child care, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            January 4, 1995

  Mrs. Lowey introduced the following bill; which was referred to the 
   Committee on Ways and Means and, in addition, to the Committee on 
Economic and Educational Opportunities, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL

 
  To offer States a national welfare reform option and incentives to 
   implement the welfare reform option, to strengthen child support 
 enforcement, to provide all States with the flexibility and resources 
  necessary to promote work and self-sufficiency, to expand access to 
             affordable child care, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Work-First Welfare Reform Act of 
1995''.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--The Congress finds that--
            (1) in 1991, fewer than 8 percent of households receiving 
        assistance under the program of aid to families with dependent 
        children (AFDC) included a wage earner;
            (2) half of all AFDC recipients leave welfare as a result 
        of finding employment, but many return to welfare because of an 
        inability to retain employment or child care arrangements;
            (3) expanded access to affordable child care is essential 
        if parents receiving AFDC are to increase their participation 
        in work, job search, education and training, and other 
        activities aimed at attaining self-sufficiency;
            (4) lack of affordable health insurance in many low-wage 
        jobs is a major barrier for AFDC recipients who are trying to 
        leave welfare for work;
            (5) more vigorous efforts to establish paternity and 
        tougher child support enforcement will be essential to the 
        success of welfare reform;
            (6) AFDC recipients should have the same financial 
        incentives to work that other Americans enjoy;
            (7) AFDC rules which dramatically reduce benefits for 
        recipients who work are a major work disincentive for AFDC 
        recipients;
            (8) welfare programs should be based on a reciprocal 
        obligation, under which recipients must take steps toward 
        independence and the Federal Government and the States must 
        provide services to assist that transition;
            (9) the Family Support Act of 1988 contained landmark 
        changes in Federal welfare policy designed to make AFDC a 
        transitional route to work, rather than a long term alternative 
        to work;
            (10) despite a number of important exceptions, 
        implementation of welfare-to-work programs under the Job 
        Opportunities and Basic Skills Training (JOBS) program, thus 
        far, has not transformed the basic message and administrative 
        practice of welfare from cash assistance to work promotion;
            (11) barriers to effective implementation of the JOBS 
        program include--
                    (A) insufficient resources necessary for States and 
                localities to support effective programs that involve 
                all mandatory participants in the JOBS program;
                    (B) excessive caseload burdens and inadequate 
                automated systems that prevent JOBS program staff from 
                properly monitoring and reporting on participation and 
                providing essential case management and job development 
                services;
                    (C) inadequate linkages between JOBS program staff 
                and welfare eligibility workers;
                    (D) insufficient emphasis on work promotion and on 
                the enforcement of work and education requirements; and
                    (E) insufficient interaction by JOBS program 
                workers with private sector employers;
            (12) effective implementation of the JOBS program, or 
        another program similar in its goals and scope, is crucial to 
        any attempt to implement more far-reaching welfare reform 
        proposals, especially initiatives involving time limits on AFDC 
        cash assistance and subsidized work; and
            (13) welfare-to-work policies must build on successful, 
        rigorously evaluated approaches to implementing the JOBS 
        program, and encourage all States to adopt similar strategies.
    (b) Purposes.--The purposes of this Act are to--
            (1) create a national model for welfare reform that would 
        require States which elect to pursue this approach to 
        fundamentally reorient their welfare programs toward getting 
        all AFDC applicants and recipients who are capable of working 
        to work;
            (2) help ensure the most effective use of the Nation's 
        investments in welfare-to-work programs;
            (3) provide enhanced Federal support and administrative 
        flexibility to States in order to enable them to increase 
        participation in their JOBS programs and to build the capacity 
        to provide integrated welfare-job development services;
            (4) make a series of policy changes, applicable to all 
        States, which are designed to reward work and reduce welfare 
        dependency; and
            (5) establish a national child support enforcement registry 
        which would serve as an information clearinghouse for all child 
        support orders in order to facilitate enforcement, especially 
        in interstate cases.

SEC. 3. TABLE OF CONTENTS.

    The table of contents of this Act is as follows:

Sec. 1. Short title.
Sec. 2. Findings and purposes.
Sec. 3. Table of contents.
                  TITLE I--STATE WELFARE REFORM OPTION

Sec. 101. Welfare reform plan.
     TITLE II--INCENTIVES FOR STATE PARTICIPATION IN WELFARE REFORM

Sec. 201. Increased funding for the State JOBS program.
Sec. 202. Authority to adjust individual AFDC benefits quarterly.
Sec. 203. Grants to support welfare reform.
                TITLE III--POLICY CHANGES TO REWARD WORK

Sec. 301. Authority of States to establish enhanced earnings disregards 
                            for AFDC recipients.
Sec. 302. Authority of States to define unemployment for purposes of 
                            the AFDC-UP program.
Sec. 303. Dependent care credit to be refundable; advance payments of 
                            credit.
Sec. 304. Report on conflicting administrative requirements that 
                            inhibit coordination of the AFDC, food 
                            stamp, medicaid, and Job Training 
                            Partnership Act programs.
Sec. 305. Outcome measures for the JOBS program.
Sec. 306. Enhance use of transitional child care and medicaid.
Sec. 307. Treatment of student earnings and income from programs under 
                            the Job Training Partnership Act.
                  TITLE IV--CHILD SUPPORT ENFORCEMENT

Sec. 401. Federal child support order registry.
Sec. 402. Expansion of Federal parent locator systems.
Sec. 403. National reporting of employees and child support 
                            information.
Sec. 404. Reconciliation of child support obligation and payments on 
                            income tax return.
Sec. 405. Uniform child support withholding order.
Sec. 406. State role.
Sec. 407. Consumer Credit Protection Act amendments.
Sec. 408. States required to enact the Uniform Interstate Family 
                            Support Act.

                  TITLE I--STATE WELFARE REFORM OPTION

SEC. 101. WELFARE REFORM PLAN.

    (a) State Plan Option.--Section 402(a) of the Social Security Act 
(42 U.S.C. 602(a)) is amended--
            (1) by striking ``and'' at the end of paragraph (44);
            (2) by striking the period at the end of paragraph (45) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (45) the following:
            ``(46) at the option of the State, provide that the State 
        has in effect and operation a welfare reform plan approved 
        under part G.''.
    (b) Welfare Reform Plan.--Title IV of such Act is amended by adding 
at the end the following:

         ``PART G--PLAN AMENDMENTS IMPLEMENTING WELFARE REFORM

``SEC. 491. WELFARE REFORM PLAN.

    ``(a) Purpose.--Any State that desires to carry out a program under 
this part may submit to the Secretary a welfare reform plan for 
reorienting the mission of the State agency in order to enable the 
State agency to--
            ``(1) integrate welfare and job development services in the 
        State and create linkages with public and private employers, 
        employment service agencies, and other social service providers 
        with the goal of facilitating access to job placement, skill 
        training, and other social services necessary for self-
        sufficiency;
            ``(2) assist low income individuals in obtaining employment 
        and skills training that will eliminate or minimize the need 
        for providing public assistance to such individuals;
            ``(3) establish formal agreements between each recipient of 
        such aid and the State agency that specify their mutual 
        obligations in working to attain long-term self-sufficiency for 
        such recipients; and
            ``(4) provide for the prompt involvement of each such 
        recipient, who is not exempt from participation in the State 
        program under part F, in employment, job-search, self-
        sufficiency planning, and skills training that will lead to 
        economic self-sufficiency.
    ``(b) Contents of Plan.--A welfare reform plan shall contain--
            ``(1) a welfare-job development integration plan that meets 
        the requirements of section 492; and
            ``(2) a plan for increasing employment among the 
        individuals participating in the State program under part F 
        that includes specific strategies and cost estimates for 
        increasing the capacity of the State to deliver services to the 
        individuals that will increase the number of hours worked by, 
        the earnings of, and the total income of the individuals.
    ``(c) Form of Plan.--A welfare reform plan shall be in the form of 
amendments to the State plans under parts A and F.
    ``(d) Definitions.--
            ``(1) General rule.--The terms used in this part shall have 
        the meanings given such terms under part A.
            ``(2) Other terms.--As used in this part:
                    ``(A) Adjusted income.--The term `adjusted income' 
                means all income other than--
                            ``(i) any refund made by reason of section 
                        32 of the Internal Revenue Code of 1986 
                        (relating to earned income credit),
                            ``(ii) any payment by an employer under 
                        section 3507 of such Code (relating to advance 
                        payment of earned income credit), and
                            ``(iii) any amount received through the 
                        food stamp program under the Food Stamp Act of 
                        1977.
                    ``(B) Participant.--The term `participant' means an 
                individual who is participating in activities under 
                this part, or who has requested such participation.
                    ``(C) Poverty line.--The term `poverty line' means 
                the income official poverty line (as defined by the 
                Office of Management and Budget, and revised annually 
                in accordance with section 673(2) of the Omnibus Budget 
                Reconciliation Act of 1981) applicable to a family of 
                the size involved.

``SEC. 492. WELFARE-JOB DEVELOPMENT INTEGRATION PLAN.

    ``(a) Description.--A welfare-job development integration plan is a 
plan designed to integrate welfare and job development services and to 
improve and expand case management services available to recipients of 
aid under the State plan approved under part A.
    ``(b) Contents.--A welfare-job development integration plan shall 
include strategies for--
            ``(1) integrating job development personnel into the 
        management and operation of the State agency for the purposes 
        of--
                    ``(A) using such personnel in intake settings in 
                order to evaluate the earning capacity and job 
                development needs of applicants for benefits that are 
                based, in whole or in part, on need and to provide the 
                applicants with job placement counseling in order to 
                obviate or minimize the need for obtaining such 
                assistance;
                    ``(B) increasing significantly the use of such 
                personnel in providing case management services to 
                recipients of aid under the State plan approved under 
                part A with the goal of increasing the number of such 
                recipients that are engaged in employment or some form 
                of work; and
                    ``(C) enhancing linkages between the State agency 
                and employers, job training and education institutions, 
                and other social service providers;
            ``(2) integrating information systems to provide welfare 
        and job development personnel with access to relevant 
        information about job openings, skill requirements, and 
        education and skill training opportunities;
            ``(3) co-locating (where practicable) welfare, employment, 
        and child support enforcement services;
            ``(4) establishing procedures for entering into contracts 
        with service providers under which payment levels are based on 
        performance levels, and entering into memoranda of 
        understanding with job training providers under which payment 
        levels are based on outcomes relating to job placement and 
        retention;
            ``(5) establishing training procedures for welfare 
        personnel that emphasize job-placement, counseling, and case 
        management;
            ``(6) establishing performance incentives for individual 
        welfare and job development personnel based on such factors 
        as--
                    ``(A) the rate at which recipients of such aid who 
                are assisted by such personnel are placed in jobs; and
                    ``(B) the average earnings of recipients of such 
                aid who are placed in jobs;
            ``(7) modifying personnel plans and operating and capital 
        budgets to reduce the ratio within the State agency of clients 
        to case workers, with the goals of limiting the ratio to not 
        more than 100 clients per case worker, and improving the 
        capacity of the State to provide assistance to meet the needs 
        of minor parents; and
            ``(8) setting such aid at a level so that the sum of the 
        aid payable to a family of an aid recipient who is employed 
        full-time and has entered into a work-support agreement under 
        section 493(b)(1) and the earned income of the family results 
        in an adjusted income for the family of not less than the 90 
        percent of the poverty line.
    ``(c) Persons Required to Participate or To Be Included.--A 
welfare-job development integration plan shall--
            ``(1) provide that, as a continuing condition of 
        eligibility for aid under the State plan approved under part A, 
        an applicant or recipient of such aid who is not exempt from 
        participation in the program of the State under part F must 
        enter into an Empowerment Compact with the State pursuant to 
        section 493; and
            ``(2) contain a commitment by the State to enter into an 
        Empowerment Compact pursuant to section 493 with each applicant 
        for such aid (if eligible for such aid), and each recipient of 
        such aid, who--
                    ``(A) is not exempt from participation in the 
                program of the State under part F; or
                    ``(B) if exempt from such participation, has 
                requested such participation.

``SEC. 493. EMPOWERMENT COMPACTS.

    ``(a) Description.--An Empowerment Compact is a written agreement 
that--
            ``(1) specifies the obligations of the State and of the 
        participant in taking the steps necessary for the participant 
        to achieve long-term self-sufficiency; and
            ``(2) includes specific goals, and timetables for the 
        attainment of such goals, that will enable the State and the 
        participant to assess periodically the progress of the 
        participant toward self-sufficiency.
    ``(b) Types.--An Empowerment Compact shall be of 1 of the following 
types:
            ``(1) Work-support agreement.--A work-support agreement 
        that provides, at a minimum, the following:
                    ``(A) Benefit levels.--
                            ``(i) In general.--The amount payable as 
                        aid to the participant under the State plan 
                        approved under part A shall be set at a level 
                        so that the sum of such aid and the earnings of 
                        the participant from full-time employment 
                        results in an adjusted income for the family of 
                        the participant of not less than 90 percent of 
                        the poverty line, except that a family with 
                        more than 4 members shall be considered to have 
                        only 4 members.
                            ``(ii) Reduction of earnings disregarded.--
                        If the adjusted income of the family of the 
                        participant for a month exceeds the poverty 
                        line, the State may reduce the amount of 
                        earnings of the participant that is disregarded 
                        in determining the amount of such aid.
                            ``(iii) Maximum benefit.--If the adjusted 
                        income of the family of the participant for a 
                        month (with such exclusions) exceeds 150 
                        percent of the poverty line, the family shall 
                        not be eligible to receive aid under the State 
                        plan approved under part A.
                    ``(B) Child support order required to be 
                obtained.--The participant must have obtained a child 
                support order for each child of the participant who is 
                living with the participant, and must cooperate with 
                the State in obtaining support payments for the 
                participant and for any child with respect to whom aid 
                under the State plan is claimed unless the participant 
                is found to have good cause for refusing to cooperate 
                (as determined by the State agency in accordance with 
                the standards prescribed by the Secretary under section 
                402(a)(26)(B)(ii)).
                    ``(C) Assessment.--Not later than 1 year after the 
                work-support agreement has been entered into, the State 
                shall assess whether the participant has the capacity 
                to earn more than 150 percent of the poverty line.
                    ``(D) Revision of employability plan.--If the State 
                determines that the participant does not have the 
                capacity to earn more than 150 percent of the poverty 
                line, the State shall require the participant to revise 
                the Empowerment Compact to include specific plans and 
                timetables for enhancing the earning capacity of the 
                participant through skills training or other activities 
                that the State determines are appropriate.
                    ``(E) Mitigation of reduced income due to required 
                remedial activities.--If the participant must work 
                fewer hours in order to undertake the activities 
                referred to in subparagraph (D), the amount of aid 
                payable to the participant under the State plan 
                approved under part A shall be an amount that results 
                in the adjusted income for the family of the 
                participant of not less than 90 percent of the average 
                of such adjusted income during the 3-month period that 
                ends with the commencement of such activities, but only 
                if the monthly earnings or work hours of the 
                participant are not less than 75 percent of the average 
                of such earnings or work hours during such 3-month 
                period.
                    ``(F) Case management services.--The State agency 
                shall provide case management services to the 
                participant (including engaging with the participant in 
                self-sufficiency planning), and coordinate with local 
                schools, employers, and community-based organizations 
                in assisting the participant in overcoming personal 
                barriers to self-sufficiency (including substance 
                abuse), obtaining education and job-training, and 
                securing employment.
                    ``(G) Transitional case management services.--The 
                State agency shall provide case management services to 
                the participant for not more than 12 months after aid 
                to the participant under the State plan approved under 
                part A is terminated.
                    ``(H) Placement of limited child support payments 
                in interest-bearing account.--
                            ``(i) Establishment of account.--The State 
                        agency shall establish an interest-bearing 
                        account for the participant if--
                                    ``(I) the participant is entitled 
                                to child support payments under a court 
                                order or an order of an administrative 
                                process established under State law; 
                                and
                                    ``(II) during the past 12 months, 
                                an account has not been established 
                                under this clause for the participant.
                            ``(ii) Deposits into account.--Except as 
                        provided in clause (iii), after receiving and 
                        paying to the participant the maximum amount of 
                        child support payments payable to the 
                        participant under the State plans approved 
                        under parts A and D, the State agency shall 
                        deposit in the account (if any) established 
                        under clause (i) the first $50 of child support 
                        payments received with respect to a child of 
                        the participant.
                            ``(iii) Limitation.--The State agency shall 
                        not under clause (ii) deposit more than $500 
                        into any account established under clause (i).
                            ``(iv) Distribution.--The State agency 
                        shall make the amounts contained in the account 
                        available to a participant to whom aid under 
                        the State plan approved under part A has been 
                        terminated--
                                    ``(I) within 14 days after such 
                                termination, if such aid has been 
                                terminated due to excessive earnings of 
                                the participant; or
                                    ``(II) within 45 days after such 
                                termination, in any other case.
            ``(2) Skills development agreement.--A skills development 
        agreement that provides, at a minimum, the following:
                    ``(A) Increase in asset limits; case management 
                services; placement of limited child support payments 
                in interest-bearing account.--The same obligations set 
                forth in subparagraphs (F), (G), and (H) of paragraph 
                (1).
                    ``(B) Goals and timetables.--If the participant is 
                required to participate in the State program under part 
                F, the participant shall establish specific goals and 
                timetables (as part of the employability plan developed 
                for the participant under section 482(b)(1)(B)) for 
                obtaining employment and, as necessary, for engaging in 
                skills training and other activities in order to 
                increase the earning capacity of the participant to at 
                least 150 percent of the poverty line.
                    ``(C) Assessment.--Not later than 1 year after the 
                skills development agreement has been entered into, the 
                State shall assess whether the participant has the 
                capacity to earn more than 150 percent of the poverty 
                line.
                    ``(D) Revision of employability plan.--If the State 
                determines that the participant does not have the 
                capacity to earn more than 150 percent of the poverty 
                line, the State shall require the participant to revise 
                the employability plan to include specific plans and 
                timetables for enhancing the earning capacity of the 
                participant through skills training or other activities 
                that the State determines are appropriate.
    ``(c) Empowerment Compact To Reflect Preferences of the 
Participant.--The State agency shall--
            ``(1) inform the participant of the availability of each 
        type of Empowerment Compact described in subsection (b);
            ``(2) consult with the participant in the development of an 
        Empowerment Compact for the participant;
            ``(3) inform the participant of the right of the 
        participant to suggest revisions in any Empowerment Compact 
        entered into with the participant;
            ``(4) consult with the participant in any revision of an 
        Empowerment Compact entered into with the participant; and
            ``(5) to the maximum extent possible and consistent with 
        this section, ensure that the Empowerment Compact for a 
        participant reflects the preferences of the participant.
    ``(d) Reassessment and Revision.--Not later than 6 months after the 
State and a participant enter into an Empowerment Compact, and not less 
frequently than biannually thereafter, the State--
            ``(1) shall assess the progress of the participant toward 
        achieving the goals for self-sufficiency set forth in the 
        Empowerment Compact; and
            ``(2) may revise the terms of the Empowerment Compact in 
        order to enhance the progress of the participant toward self-
        sufficiency.

``SEC. 494. APPROVAL AND IMPLEMENTATION OF WELFARE REFORM PLAN.

    ``(a) Approval.--Not later than 120 days after a State submits to 
the Secretary a welfare reform plan that meets the requirements of 
section 491, and after the Secretary provides for public review of and 
public comment on the plan, the Secretary shall approve the plan.
    ``(b) Implementation.--
            ``(1) In general.--Upon approval by the Secretary of the 
        welfare reform plan of a State, the State may implement the 
        plan.
            ``(2) Certification.--
                    ``(A) AFDC applicants.--Not later than 6 months 
                after the Secretary approves the welfare reform plan of 
                a State, the State shall certify that the State has 
                entered into Empowerment Compacts with a significant 
                number (as prescribed by the Secretary in regulations) 
                of the applicants for aid under the State plan under 
                part A with whom the State is required to enter into 
                Empowerment Compacts.
                    ``(B) AFDC recipients.--Not later than 1 year after 
                the Secretary approves the welfare reform plan of a 
                State, the State shall certify to the Secretary that 
                the State has entered into Empowerment Compacts with a 
                significant number (as prescribed by the Secretary in 
                regulations) of the recipients of aid under the State 
                plan under part A with whom the State is required to 
                enter into Empowerment Compacts.

``SEC. 495. EVALUATION.

    ``Within 3 years after the Secretary approves the welfare reform 
plan of a State and every 3 years thereafter, the State shall submit to 
the Secretary a report that contains the findings of an evaluation of 
the impacts of the plan on, at a minimum, the following:
            ``(1) The earnings of, number of hours worked by, and total 
        income of recipients of aid under the State plan approved under 
        part A.
            ``(2) The rate at which such recipients obtain child 
        support orders.
            ``(3) The average duration of receipt of such aid.
            ``(4) The rate at which former recipients of such aid have 
        resumed receipt of such aid.
            ``(5) The number of hours spent by such recipients in work 
        programs and skill training programs.''.
    (c) Increased Resource Disregards for AFDC Recipients Who Have 
Entered Into Empowerment Compacts.--Section 402(a)(7)(B) of such Act 
(42 U.S.C. 602(a)(7)(B)) is amended--
            (1) by inserting (or, in the case of a family any of whose 
        members has entered into an Empowerment Compact with the State, 
        $5,000)'' after ``may determine''; and
            (2) by inserting ``(or, in the case of a family any of 
        whose members has entered into an Empowerment Compact with the 
        State, $3,000 or such lower amount that is not less than $2,000 
        as the State may determine)'' before ``, (ii)''.
    (d) Deadline for Rapid Assessment and Referral.--Section 482(b) of 
such Act (42 U.S.C. 682(b)) is amended by adding at the end the 
following:
    ``(4) Within 60 days after an individual becomes required to 
participate in the program of a State under this part, the State agency 
shall conduct the assessment of the individual, develop an 
employability plan for the individual, and refer the individual to a 
program component.''.

     TITLE II--INCENTIVES FOR STATE PARTICIPATION IN WELFARE REFORM

SEC. 201. INCREASED FUNDING FOR THE STATE JOBS PROGRAM.

    Section 403(l) of the Social Security Act (42 U.S.C. 603(l)) is 
amended by adding at the end the following:
    ``(5)(A) Notwithstanding any other provision of this subsection:
            ``(i) A welfare reform State shall not be subject to any 
        limitation on payments under this subsection by reason of 
        subsection (k).
            ``(ii) The Secretary shall pay to any welfare reform State 
        for any fiscal year after fiscal year 1994 an amount equal to 
        90 percent of the amount (if any) by which the cash 
        expenditures of the State for the costs of operating a program 
        under part F (including cash expenditures for the costs of 
        providing child care pursuant to section 402(g)(1)(A)) for the 
        fiscal year exceeds the total of such cash expenditures for 
        fiscal year 1994, in lieu of any payment for such expenditures 
        under subsection (a) of this section.
    ``(B) Subparagraph (A) shall not apply to a welfare reform State 
for a fiscal year unless the State meets the following requirements:
            ``(i) The expenditures of the State for the costs of 
        operating a program under part F (whether in cash or in kind) 
        for the fiscal year is not less than the amount so expended 
        during fiscal year 1994.
            ``(ii) Beginning 3 years after the Secretary approves the 
        welfare reform plan of the State, the participation rate of the 
        State is not less than 50 percent.
            ``(iii) The expenditures of the State for the costs of 
        providing child care pursuant to section 402(g) (whether in 
        cash or in kind) for the fiscal year is not less than such 
        expenditures for fiscal year 1994.
    ``(C) The term `welfare reform State' means a State that has a plan 
approved under part G and has made any certification required by 
section 494(b).''.

SEC. 202. AUTHORITY TO ADJUST INDIVIDUAL AFDC BENEFITS QUARTERLY.

    Section 402(a) of the Social Security Act (42 U.S.C. 602(a)), as 
amended by section 101(a) of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (45);
            (2) by striking the period at the end of paragraph (46) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (46) the following:
            ``(47) if the State is a welfare reform State (as defined 
        in section 403(l)(5)(C)), provide that if the State elects to 
        reduce to quarterly the frequency with which the State adjusts 
        the amount payable to individuals participating in activities 
        under the State plan approved under part G, the State must 
        modify such amount (in accordance with regulations prescribed 
        by the Secretary) if such an individual presents documentation 
        that--
                    ``(A) the income of the individual during the 
                succeeding 3-month period will be less than such income 
                during the most recent 3-month period; or
                    ``(B) the income of the individual during the 
                succeeding 3-month period will be less than the amount 
                the State has determined will be the income of the 
                individual for such period.''.

SEC. 203. GRANTS TO SUPPORT WELFARE REFORM.

    (a) Welfare Reform Planning Grants.--The Secretary may make grants 
to States for the purpose of developing welfare reform plans pursuant 
to part G of title IV of the Social Security Act.
    (b) Limitations on Authorization of Appropriations.--The Secretary 
may expend in any of fiscal years 1994, 1995, 1996, 1997, 1998, 1999, 
and 2000 for grants under subsection (a) of this section not more than 
1 percent of the amounts appropriated for payments under section 403(l) 
of the Social Security Act for the fiscal year.

                TITLE III--POLICY CHANGES TO REWARD WORK

SEC. 301. AUTHORITY OF STATES TO ESTABLISH ENHANCED EARNINGS DISREGARDS 
              FOR AFDC RECIPIENTS.

    Section 402(a)(8)(B) of the Social Security Act (42 U.S.C. 
602(a)(8)(B)) is amended--
            (1) by striking ``and'' at the end of clause (i); and
            (2) by adding at the end the following:
                    ``(iii) notwithstanding clauses (ii) and (iv) of 
                subparagraph (A) and clause (ii) of this subparagraph, 
                may disregard earned income of any child or relative 
                receiving aid to families with dependent children, or 
                of any other individual (living in the same home as 
                such relative and child) whose needs as taken into 
                account in making the determination under paragraph 
                (7), in accordance with any combination of rules which 
                (as determined by the State in accordance with 
                regulations prescribed by the Secretary) is at least as 
                favorable to the recipient of such aid as the 
                combination of rules contained in such clauses, but not 
                more favorable to the recipient than a rule providing 
                for the disregard of the first $200 of the total of 
                such earned income for such month plus \1/2\ of the 
                remainder thereof; and''.

SEC. 302. AUTHORITY OF STATES TO DEFINE UNEMPLOYMENT FOR PURPOSES OF 
              THE AFDC-UP PROGRAM.

    Section 407(a) of the Social Security Act (42 U.S.C. 607(a)) is 
amended--
            (1) by inserting ``(1)'' after ``(a)'';
            (2) by striking ``Secretary'' and inserting ``State''; and
            (3) by adding at the end the following:
    ``(2) The standards prescribed pursuant to paragraph (1) shall not 
impose a limit of less than 100 hours on the amount of time during 
which a parent who is the principal earner may be employed during a 
month.''.

SEC. 303. DEPENDENT CARE CREDIT TO BE REFUNDABLE; ADVANCE PAYMENTS OF 
              CREDIT.

    (a) Credit To Be Refundable.--
            (1) In general.--Section 21 of the Internal Revenue Code of 
        1986 (relating to expenses for household and dependent care 
        services necessary for gainful employment) is hereby moved to 
        subpart C of part IV of subchapter A of chapter 1 of such Code 
        (relating to refundable credits) and inserted after section 34.
            (2) Technical amendments.--
                    (A) Section 35 of such Code is redesignated as 
                section 36.
                    (B) Section 21 of such Code is redesignated as 
                section 35.
                    (C) Paragraph (1) of section 35(a) of such Code (as 
                redesignated by subparagraph (B)) is amended by 
                striking ``this chapter'' and inserting ``this 
                subtitle''.
                    (D) Subparagraph (C) of section 129(a)(2) of such 
                Code is amended by striking ``section 21(e)'' and 
                inserting ``section 35(e)''.
                    (E) Paragraph (2) of section 129(b) of such Code is 
                amended by striking ``section 21(d)(2)'' and inserting 
                ``section 35(d)(2)''.
                    (F) Paragraph (1) of section 129(e) of such Code is 
                amended by striking ``section 21(b)(2)'' and inserting 
                ``section 35(b)(2)''.
                    (G) Subsection (e) of section 213 of such Code is 
                amended by striking ``section 21'' and inserting 
                ``section 35''.
                    (H) The table of sections for subpart C of part IV 
                of subchapter A of chapter 1 of such Code is amended by 
                striking the item relating to section 35 and inserting 
                the following:

                              ``Sec. 35. Expenses for household and 
                                        dependent care services 
                                        necessary for gainful 
                                        employment.
                              ``Sec. 36. Overpayments of tax.''.
                    (I) The table of sections for subpart A of such 
                part IV is amended by striking the item relating to 
                section 21.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to taxable years beginning after the date of the 
        enactment of this Act.
    (b) Advance Payment of Credit.--
            (1) In general.--Chapter 25 of such Code (relating to 
        general provisions relating to employment taxes) is amended by 
        inserting after section 3507 the following new section:

``SEC. 3507A. ADVANCE PAYMENT OF DEPENDENT CARE CREDIT.

    ``(a) General Rule.--Except as otherwise provided in this section, 
every employer making payment of wages with respect to whom a dependent 
care credit eligibility certificate is in effect shall, at the time of 
paying such wages, make an additional payment equal to such employee's 
dependent care credit advance amount.
    ``(b) Dependent Care Credit Eligibility Certificate.--For purposes 
of this title, a dependent care credit eligibility certificate is a 
statement furnished by an employee to the employer which--
            ``(1) certifies that the employee will be eligible to 
        receive the credit provided by section 35 for the taxable year,
            ``(2) certifies that the employee does not have a dependent 
        care credit eligibility certificate in effect for the calendar 
        year with respect to the payment of wages by another employer,
            ``(3) states whether or not the employee's spouse has a 
        dependent care credit eligibility certificate in effect, and
            ``(4) estimates the amount of dependent care credit of the 
        employee for the calendar year.
For purposes of this section, a certificate shall be treated as being 
in effect with respect to a spouse if such a certificate will be in 
effect on the first status determination date following the date on 
which the employee furnishes the statement in question.
    ``(c) Dependent Care Credit Advance Amount.--
            ``(1) In general.--For purposes of this title, the term 
        `dependent care credit advance amount' means, with respect to 
        any payroll period, the amount determined--
                    ``(A) on the basis of the employee's wages from the 
                employer for such period,
                    ``(B) on the basis of the employee's estimated 
                amount of dependent care credit included in the 
                dependent care credit eligibility certificate, and
                    ``(C) in accordance with tables provided by the 
                Secretary.
            ``(2) Advance amount tables.--The tables referred to in 
        paragraph (1)(C) shall be similar in form to the tables 
        prescribed under section 3402 and, to the maximum extent 
        feasible, shall be coordinated with such tables and the tables 
        prescribed under section 3507(c).
    ``(d) Dependent Care Credit.--For purposes of this section, the 
term `dependent care credit' means the credit allowable by section 35.
    ``(e) Other Rules.--For purposes of this section, rules similar to 
the rules of subsections (d) and (e) of section 3507 shall apply.
    ``(f) Regulations.--The Secretary shall prescribe such regulations 
as may be necessary to carry out the purposes of this section.''.
            (2) Clerical amendment.--The table of sections for chapter 
        25 of such Code is amended by inserting after the item relating 
        to section 3507 the following new item:

                              ``Sec. 3507A. Advance payment of 
                                        dependent care credit.''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to taxable years beginning more than 1 year after 
        the date of the enactment of this Act.

SEC. 304. REPORT ON CONFLICTING ADMINISTRATIVE REQUIREMENTS THAT 
              INHIBIT COORDINATION OF THE AFDC, FOOD STAMP, MEDICAID, 
              AND JOB TRAINING PARTNERSHIP ACT PROGRAMS.

    Within 1 year after the date of the enactment of this Act, and 
annually thereafter, the Secretaries of Agriculture, Health and Human 
Services, and Labor, in consultation with the States, shall jointly 
submit to the Congress a detailed report describing any provision of 
title IV of the Social Security Act, the Food Stamp Act of 1977, the 
Job Training Partnership Act, or any other Federal or State law or 
regulation that may inhibit implementation of welfare reform plans 
(whether or not submitted for approval under part G of such title).

SEC. 305. OUTCOME MEASURES FOR THE JOBS PROGRAM.

    (a) Establishment of Requirements by Regulation.--Within 9 months 
after the date of the enactment of this Act, the Secretary of Health 
and Human Services shall establish the requirements to be followed by 
each State in developing and applying outcome measures and targets for 
assessing the effectiveness of the State program under section 
402(a)(19) and part F of title IV of the Social Security Act. The 
outcome measures shall consist of methods for assessing the success of 
a State's program under such part in increasing the average number of 
hours worked by, the average earnings of, and total income of 
participants in the program. The methods shall take into account 
macroeconomic factors in the State that affect the ability of the 
program to increase the employment of its participants.
    (b) Effect of Failure to Submit Plan for Meeting Requirements.--
            (1) Reduction of jobs matching rates.--Section 403(l) of 
        the Social Security Act (42 U.S.C. 603(l)), as amended by 
        section 201 of this Act, is amended by adding at the end the 
        following:
    ``(6) The amount otherwise payable to the State under this 
subsection shall be reduced by 5 percent if the State has not submitted 
for the approval of the Secretary a plan for meeting the requirements 
established pursuant to 305(a) of the Work-First Welfare Reform Act of 
1994.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall take effect 12 months after the Secretary establishes the 
        requirements required by subsection (a).

SEC. 306. ENHANCE USE OF TRANSITIONAL CHILD CARE AND MEDICAID.

    (a) GAO Report on Methods of Determining Use.--Within 6 months 
after the date of the enactment of this Act, the Comptroller General of 
the United States shall submit to the Congress a methodology for 
determining--
            (1) the proportion of children eligible for child care 
        services under section 402(g) of the Social Security Act who 
        are receiving such services; and
            (2) the proportion of children eligible for extended 
        medical assistance benefits under a State plan approved under 
        title XIX of such Act by reason of section 1925 of such Act who 
        are receiving such benefits.
    (b) Improved State Effort To Encourage Participation.--Section 
402(g)(3)(A) of the Social Security Act (42 U.S.C. 602(g)(3)(A)) is 
amended by adding at the end the following:
    ``(iii) In the case of amounts expended for child care pursuant to 
this subsection by a State which has not made a good faith effort to 
develop clear and simple information materials describing available 
child care assistance and medical assistance under the State plan 
approved under title XIX, the otherwise applicable rate for purposes of 
section 403(a) shall be reduced by 5 percentage points.''.
    (c) Option To Provide Free Transitional Child Care to Families 
Below the Poverty Line.--Section 402(g)(1)(A) of such Act (42 U.S.C. 
602(g)(1)(A)) is amended by adding at the end the following:
    ``(viii) Notwithstanding clause (vii), each State agency may elect 
not to require a family to contribute to child care provided under 
clause (ii) if the income of the family does not exceed the income 
official poverty line (as defined by the Office of Management and 
Budget, and revised annually in accordance with section 673(2) of the 
Omnibus Budget Reconciliation Act of 1981) applicable to a family of 
the size involved.''.
    (d) Option To Provide Transitional Child Care to Nonrequesting 
Family That Agrees To Accept it.--Section 402(g)(1)(A) of such Act (42 
U.S.C. 602(g)(1)(A)), as amended by subsection (c) of this section, is 
amended by adding at the end the following:
    ``(ix) Each State agency may guarantee child care to a family that 
has not requested such care if the family is eligible for such care and 
agrees to receive such care.''.

SEC. 307. TREATMENT OF STUDENT EARNINGS AND INCOME FROM PROGRAMS UNDER 
              THE JOB TRAINING PARTNERSHIP ACT.

    (a) Resource Disregards.--Section 402(a)(7)(B) of the Social 
Security Act (42 U.S.C. 602(a)(7)(B)) is amended--
            (1) by striking ``or'' at the end of clause (iii); and
            (2) by inserting ``, or (v) the earned income of any child 
        to the extent disregarded under paragraph (8)'' before the 
        semicolon.
    (b) Income Disregards.--Section 402(a)(8)(A) of such Act (42 U.S.C. 
602(a)(8)(A)) is amended--
            (1) in clause (i)--
                    (A) by inserting ``applying for or'' before 
                ``receiving''; and
                    (B) by inserting ``(including a child (whether or 
                not married) who has not attained 20 years of age)'' 
                after ``dependent child''; and
            (2) in clause (v)--
                    (A) by striking ``may'' and inserting ``shall'';
                    (B) by inserting ``(including any child (whether or 
                not married) who has not attained 20 years of age)'' 
                after ``dependent child''; and
                    (C) by striking ``time (not to exceed six months 
                with respect to earned income)'' and inserting 
                ``time,''.
    (c) Exclusion From Gross Income Test.--Section 402(a)(18) of such 
Act (42 U.S.C. 602(a)(18)) is amended by striking ``paragraph (8)(A)(v) 
or 8(A)(viii)'' and inserting ``clause (i), (v), or (viii) of paragraph 
(8)(A)''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on October 1, 1995.

                  TITLE IV--CHILD SUPPORT ENFORCEMENT

SEC. 401. FEDERAL CHILD SUPPORT ORDER REGISTRY.

    (a) Establishment.--Not later than October 1, 1995, the Secretary 
shall establish a Federal registry of child support orders issued or 
modified by any State court or administrative process established under 
State law.
    (b) Comparison of Information on W-4 Forms With Information in 
Child Support Orders.--Within 10 days after the registry established 
under subsection (a) receives a W-4 form of an employee, the registry 
shall--
            (1) compare the information on the form with the 
        information in the registry on the child support obligations of 
        the employee; and
            (2) transmit to the registry established under section 
        466(a)(12) of the State in which the employee is employed a 
        notice as to whether the amount specified on the W-4 form as 
        the monthly child support obligation of the employee is 
        accurate or not.
    (c) Regulations.--The Secretary shall prescribe such regulations as 
may be necessary to carry out this section, especially in cases 
involving an employee who has 2 or more employers or child support 
obligations.
    (d) State Access to the Registry.--The Secretary shall, upon 
request of any State, provide the State with access to the information 
contained in the registry established under subsection (a).
    (e) Definitions.--As used in this section:
            (1) Child support order.--The term ``child support order'' 
        means an order requiring payments for support and maintenance 
        of a child or of a child and the parent with whom the child is 
        living.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Health and Human Services.
            (3) State.--The term ``State'' includes the several States, 
        the District of Columbia, the Commonwealth of Puerto Rico, the 
        Commonwealth of the Northern Mariana Islands, the United States 
        Virgin Islands, Guam, American Samoa, and the Trust Territory 
        of the Pacific Islands.

SEC. 402. EXPANSION OF FEDERAL PARENT LOCATOR SYSTEMS.

    (a) Expansion of Functions.--Section 453(a) of the Social Security 
Act (42 U.S.C. 653(a)) is amended by striking ``enforcing support 
obligations against such parent'' and inserting ``establishing 
parentage, establishing, modifying, and enforcing child support 
obligations''.
    (b) Access to Additional Data Bases.--Section 453 of such Act (42 
U.S.C. 653) is amended--
            (1) in subsection (b), by striking ``the most recent 
        address and place of employment'' and inserting ``the most 
        recent residential address, employer name and address, and 
        amounts and nature of income and assets'';
            (2) in subsection (c)(3), by striking ``the resident 
        parent'' and inserting ``either parent''; and
            (3) in subsection (e), by adding at the end the following:
    ``(4) The Secretary of the Treasury shall enter into an agreement 
with the Secretary to provide prompt access by the Secretary (in 
accordance with this subsection and section 6103(l)(6) of the Internal 
Revenue Code of 1986) to all Federal income tax returns filed by 
individuals with the Internal Revenue Service.''.
    (c) Expansion of Access to the National Parent Locator Network.--
Section 453 of such Act (42 U.S.C. 653) is amended by adding at the end 
the following:
    ``(g) The Secretary shall expand the Parent Locator Service to 
establish a national network based on the comprehensive statewide child 
support enforcement systems developed by the States, to--
            ``(1) allow each State to--
                    ``(A) locate any absent parent who owes child 
                support or for whom a child support obligation is being 
                established, by--
                            ``(i) accessing the records of other State 
                        agencies and sources of locate information 
                        directly from one computer system to another; 
                        and
                            ``(ii) accessing Federal sources of locate 
                        information in the same fashion;
                    ``(B) access the files of other States to determine 
                whether there are other child support orders and obtain 
                the details of those orders;
                    ``(C) provide for both on-line and batch processing 
                of locate requests, with on-line access restricted to 
                cases in which the information is needed immediately 
                (for such reasons as court appearances) and batch 
                processing used to `troll' data bases to locate 
                individuals or update information periodically; and
                    ``(D) direct locate requests to individual States 
                or Federal agencies, broadcast requests to selected 
                States, or broadcast cases to all States when there is 
                no indication of the source of needed information;
            ``(2) provide for a maximum of 48-hour turnaround time for 
        information to be broadcast and returned to a requesting State;
            ``(3) provide ready access to courts and administrative 
        agencies of the information on the network by location of a 
        computer terminal in each court; and
            ``(4) access the registries of child support orders 
        maintained by States pursuant to section 466(a)(12).''.

SEC. 403. NATIONAL REPORTING OF EMPLOYEES AND CHILD SUPPORT 
              INFORMATION.

    (a) In General.--The Secretary of the Treasury, in consultation 
with the Secretary of Labor, shall establish a system of reporting of 
employees by requiring employers to provide a copy of every employee's 
W-4 form to the Federal child support order registry established 
pursuant to section 401(a) of the Work-First Welfare Reform Act of 1994 
and to the child support order registry established pursuant to section 
466(a)(12) of the Social Security Act by the State in which the 
employment is located--
            (1) in the case of employees hired on or after the 
        effective date of this section, on the date the employee is 
        hired; or
            (2) in the case of employees hired before such effective 
        date, within 10 days after such effective date.
    (b) Inclusion of Child Support Information on W-4 Forms.--The 
Secretary of the Treasury shall modify the W-4 form to enable the 
employee to indicate on the form--
                    (A) whether the employee owes child support, and if 
                so--
                            (i) to whom the support is payable and the 
                        amount of the support payable; and
                            (ii) whether the support is to be paid 
                        through wage withholding; and
                    (B) whether health care insurance is available to 
                the new employee, and, if so, whether the employee has 
                obtained such insurance for the dependent children of 
                the employee.

SEC. 404. RECONCILIATION OF CHILD SUPPORT OBLIGATION AND PAYMENTS ON 
              INCOME TAX RETURN.

    (a) In General.--Chapter 77 of the Internal Revenue Code of 1986 
(relating to miscellaneous provisions) is amended by adding at the end 
thereof the following new section:

``SEC. 7524. RECONCILIATION OF CHILD SUPPORT OBLIGATION AND PAYMENTS ON 
              INCOME TAX RETURN.

    ``(a) In General.--Each applicable child support obligation of any 
individual for months ending with or within any taxable year shall be 
paid--
            ``(1) not later than the last date (determined without 
        regard to extensions) prescribed for filing the individual's 
        return of tax imposed by chapter 1 for such taxable year, and
            ``(2)(A) if such return is filed not later than such date, 
        with such return, or
            ``(B) in any case not described in subparagraph (A), in 
        such manner as the Secretary may by regulations prescribe.
    ``(b) Offset for Withheld Child Support, Etc.--There shall be 
allowed as a credit against the amount required to be paid under 
subsection (a) by an individual the sum of--
            ``(1) the amount (if any) deducted and withheld pursuant to 
        State law from the wages received by such individual during the 
        taxable year,
            ``(2) the amount (if any) paid by such individual under 
        section 6654 by reason of subsection (f)(3) thereof for such 
        taxable year, and
            ``(3) the amount paid by such individual directly to the 
        person to whom the obligation is owed (or, if such person has 
        assigned to a State the right to collect the obligation, the 
        State).
    ``(c) Credit or Refund for Payments in Excess of Actual 
Obligation.--There shall be allowed as a credit against the tax imposed 
by subtitle A for the taxable year an amount equal to the excess (if 
any) of--
            ``(1) the aggregate of the amounts described in paragraphs 
        (1), (2), and (3) of subsection (a) for such taxable year, over
            ``(2) the aggregate of the child support obligations of the 
        taxpayer for such taxable year.
The credit allowed by this subsection shall be treated for purposes of 
this title as allowed by subpart C of part IV of subchapter A of 
chapter 1.
    ``(d) Failure To Pay Amount Owing.--If an individual fails to pay 
the full amount required to be paid under subsection (a) on or before 
due date for such payment, the Secretary shall assess and collect the 
unpaid amount in the same manner, with the same powers, and subject to 
the same limitations applicable to a tax imposed by subtitle C the 
collection of which would be jeopardized by delay.
    ``(e) Applicable Child Support Obligation.--For purposes of this 
section, the term `applicable child support obligation' means a legal 
obligation to provide child support (as defined in section 462(b) of 
the Social Security Act).
    ``(f) Amounts Collected by Secretary Paid to State Registries.--
Amounts collected under this section and section 6654 by reason of an 
applicable child support obligation shall be paid by the Secretary to 
the appropriate State registry established pursuant to section 
466(a)(12)(A)(i) of the Social Security Act.''
    (b) Withheld Child Support To Be Shown on W-2.--Subsection (a) of 
section 6051 of such Code is amended by striking ``and'' at the end of 
paragraph (8), by striking the period at the end of paragraph (9) and 
inserting ``, and'', and by inserting after paragraph (9) the following 
new paragraph:
            ``(10) the total amount of child support obligations 
        withheld pursuant to State law.''
    (c) Application of Estimated Tax Penalty.--
            (1) Subsection (f) of section 6654 of such Code (relating 
        to failure by individual to pay estimated income tax) is 
        amended by striking ``minus'' at the end of paragraph (2) and 
        inserting ``plus'', by redesignating paragraph (3) as paragraph 
        (4), and by inserting after paragraph (2) the following new 
        paragraph:
            ``(3) the aggregate applicable child support obligation (as 
        defined in section 7524(a)) of the taxpayer for months ending 
        with or within the taxable year, minus''.
            (2) Paragraph (1) of section 6654(d) of such Code is 
        amended by adding at the end the following new subparagraph:
                    ``(D) Determination of required annual payment for 
                taxpayers required to pay child support.--In the case 
                of a taxpayer who is required under section 7524 to pay 
                an applicable child support obligation (as defined in 
                section 7524) for any month ending with or within the 
                taxable year, the required annual payment shall be the 
                sum of--
                            ``(i) the amount determined under 
                        subparagraph (B) without regard to subsection 
                        (f)(3), plus
                            ``(ii) the aggregate amount of such 
                        obligation for all months ending with or within 
                        the taxable year.''
            (3) Credit for withheld amounts, etc.--Subsection (g) of 
        section 6654 of such Code is amended by adding at the end the 
        following new paragraph:
            ``(3) Child support.--For purposes of applying this 
        section, the sum of--
                    ``(A) amounts deducted and withheld under State law 
                for applicable child support obligations, and
                    ``(B) amounts paid by the individual directly to 
                the person to whom the obligation is owed (or, if such 
                person has assigned to a State the right to collect the 
                obligation, the State),
        shall be deemed to be a payment of the amount described in 
        subsection (f)(3) on the date such amounts were actually 
        withheld or paid, as the case may be.''.
    (d) Clerical Amendment.--The table of sections for chapter 77 of 
such Code is amended by adding at the end thereof the following new 
item:

                              ``Sec. 7524. Reconciliation of child 
                                        support obligation and payments 
                                        on income tax return.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1995.

SEC. 405. UNIFORM CHILD SUPPORT WITHHOLDING ORDER.

    Section 452(a) of the Social Security Act (42 U.S.C. 652(a)) is 
amended--
            (1) by striking ``and'' at the end of paragraph (9);
            (2) by striking the period at the end of paragraph (10) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (10) the following:
            ``(11) develop a uniform order to be used in all cases in 
        which income is to be withheld for the payment of child 
        support, which shall contain the name of the individual whose 
        income is to be withheld, the number of children covered by the 
        order, and the individual or State to whom the withheld income 
        is to be paid, and be generic to allow for the service of the 
        order on all sources of income.''.

SEC. 406. STATE ROLE.

    (a) State Child Support Order Registries.--Section 466(a) of the 
Social Security Act (42 U.S.C. 666(a)) is amended by inserting after 
paragraph (11) the following:
            ``(12) Procedures under which the--
                    ``(A) State child support enforcement agency 
                shall--
                            ``(i) establish and maintain a child 
                        support order registry which shall include--
                                    ``(I) a copy of each child support 
                                order issued or modified in the State 
                                on or after the effective date of this 
                                paragraph;
                                    ``(II) a copy of each child support 
                                order issued or modified in the State 
                                before the effective date of this 
                                paragraph that is being enforced under 
                                the State plan; and
                                    ``(III) a copy of each child 
                                support order issued or modified in the 
                                State before the enactment of this 
                                paragraph that the parties to the order 
                                have requested be included in the 
                                Federal child support order registry 
                                established pursuant to section 401(a) 
                                of the Work-First Welfare Reform Act of 
                                1994;
                            ``(ii)(I) immediately upon receipt of a 
                        child support order referred to in subclause 
                        (I) or (II) of clause (i), transmit a copy of 
                        the order to the Federal registry; and
                            ``(II) beginning 2 years after such date of 
                        enactment, transmit to the Federal registry a 
                        copy of each child support order referred to in 
                        clause (i)(III); and
                            ``(iii) distribute in accordance with 
                        section 457(b) all amounts received from 
                        employers that have been deducted and withheld 
                        from the wages of employees for the payment of 
                        child support obligations, and all amounts 
                        received from the Internal Revenue Service 
                        pursuant to section 7524(f) of the Internal 
                        Revenue Code of 1986, within 10 days after 
                        receipt;
                    ``(B) allow any individual owed support pursuant to 
                a child support order issued or modified in the State 
                who alleges that an employer has failed to comply 
                subsection (b)(11)(B)(ii) with respect to the order, or 
                that the State has failed to comply with subparagraph 
                (A)(iii) of this paragraph with respect to amounts 
                withheld from wages pursuant to the order and paid to 
                the State, to bring an action against the employer or 
                the State, as the case may be, in any State court and 
                recover damages, including interest; and
                    ``(C) the State agency referred to in section 
                402(a)(3) shall notify the State child support 
                enforcement agency of the commencement or termination 
                of aid under the State plan approved under part A to 
                any individual or family, within 10 days after such 
                commencement or termination.''.
    (b) Direct Wage Withholding.--Section 466(b) of such Act (42 U.S.C. 
666(b)) is amended by adding at the end the following:
            ``(11)(A)(i) Upon the issuance or modification by a State 
        court or administrative agency of an order imposing a child 
        support obligation on an individual, the State shall transmit 
        to any employer of the individual a wage withholding order 
        developed under section 452(a)(11) directing the employer to 
        withhold amounts from the wages of the individual pursuant to 
        the order, or such greater amount as the State child support 
        order registry established pursuant to subsection (a)(12)(A) 
        may determine is the total amount of the child support 
        obligations of the individual.
            ``(ii) Clause (i) shall not apply to an order upon 
        agreement of the parties to the order and the court or 
        administrative agency that issued or modified the order.
            ``(iii) An agreement referred to in clause (ii) may be 
        unilaterally rescinded only by the individual to whom child 
        support is payable under the order.
            ``(B) Any individual or entity engaged in commerce, as a 
        condition of doing business in the State, shall, on receipt of 
        a wage withholding order developed under section 452(a)(11) 
        that is regular on its face and has been issued by a court of 
        any State--
                    ``(i) immediately provide a copy of the order to 
                the employee subject to the order;
                    ``(ii) comply with the order by forwarding to the 
                State registry established pursuant to subsection 
                (a)(12)(A) of this section, within 5 days after the end 
                of each payroll period ending after receipt of the 
                order, the greater of--
                            ``(I) the amount required to be withheld 
                        pursuant to the order; or
                            ``(II) the amount that the State registry 
                        has notified the employer is the amount 
                        required to be withheld from the wages of the 
                        employee for payment of child support 
                        obligations of the employee; and
                    ``(iii) keep records of the amounts so withheld.
            ``(C) Such an order may be served on the income source 
        directly or by first-class mail.
            ``(D) An individual or entity who complies with 
        subparagraph (B)(ii) with respect to such an order may not be 
        held liable for wrongful withholding of income from the 
        employee subject to the order.
            ``(E) The State shall impose a civil fine of $1,000 on any 
        individual or entity who receives such an order for each 
        failure to comply with subparagraph (B)(ii) with respect to the 
        order.
            ``(F) The State shall have in effect procedures for 
        carrying out this paragraph in cases involving an employee who 
        has 2 or more employers or child support obligations.
            ``(12) If the State transmits to an individual or entity 
        engaged in commerce only outside the State a wage withholding 
        order issued by the State with respect to an employee of the 
        individual or entity, and the individual or entity contests or 
        refuses to comply with the order, the State shall send an 
        informational copy of the order to the registry established 
        under subsection (a)(12)(A) of any other State in which the 
        individual or entity is engaged in commerce.
            ``(13) If an employee requests a hearing to contest wage 
        withholding based on claim of a mistake of fact, the hearing 
        may be held in the State from which the income is paid or in 
        which the employee is employed, and, within 45 days after the 
        income source receives the withholding order, the entity 
        conducting the hearing must adjudicate the claim. The State in 
        which the hearing is held shall provide appropriate services in 
        cases enforced under the State plan to ensure that the 
        interests of the individual to whom the withheld income is to 
        be paid are adequately represented.''.
    (c) Priorities in Application of Withheld Wages.--Section 466(b) of 
such Act (42 U.S.C. 666(b)), as amended by subsection (b) of this 
section, is amended by inserting after paragraph (13) the following:
            ``(14) Procedures under which the amounts withheld pursuant 
        to a child support or wage withholding order are to be applied 
        in the following order:
                    ``(A) To payments of support due during the month 
                of withholding.
                    ``(B) To payments of premiums for health care 
                insurance coverage for dependent children.
                    ``(C) To payments of support due before the month 
                of withholding, and of unreimbursed health-care 
                expenses.''.
    (d) Access to Various Data Bases.--Section 466(a) of such Act (42 
U.S.C. 666(a)), as amended by subsection (a) of this section, is 
amended by inserting after paragraph (12) the following:
            ``(13) Procedures under which the State child support 
        enforcement agency shall have automated on-line or batch access 
        (or, if necessary, nonautomated access) to information 
        regarding residential addresses, employers and employer 
        addresses, income and assets, and medical insurance benefits 
        with respect to absent parents that is available through any 
        data base maintained by--
                    ``(A) any agency of the State or any political 
                subdivision thereof, that contains information on 
                residential addresses, or on employers and employer 
                addresses, as the State deems appropriate;
                    ``(B) any publicly regulated utility company 
                located in the State; and
                    ``(C) any credit reporting agency located in the 
                State.''.
    (e) Expanded Interaction With the National Parent Locator 
Network.--Section 454(16) of such Act (42 U.S.C. 654(16)) is amended--
            (1) by striking ``and (E)'' and inserting ``(E)''; and
            (2) by striking ``enforcement;'' and inserting 
        ``enforcement, and (F) to provide access to the national 
        network developed pursuant to section 453(g);''.
    (f) Private Access To Locate and Enforcement Services.--Section 
466(a) of such Act (42 U.S.C. 666(a)), as amended by subsections (a) 
and (d) of this section, is amended by inserting after paragraph (13) 
the following:
            ``(14)(A) Procedures under which private attorneys and pro 
        se obligees must be given access to State locate resources and 
        through enforcement techniques of the State child support 
        enforcement agency, for the purpose of establishing, modifying, 
        and enforcing child support and parentage orders, in accordance 
        with safeguards established--
                    ``(i) to provide the custodial parent advance 
                notice of any release of information with respect to a 
                noncustodial parent; and
                    ``(ii) to prevent release of information with 
                respect to a noncustodial parent if the release may 
                jeopardize the safety of the noncustodial parent, the 
                custodial parent, or any child of either parent; and
            ``(B) The procedures described in subparagraph (A) must 
        require the State--
                    ``(i) to develop and publish guidelines 
                implementing the safeguards described in subparagraph 
                (A); and
                    ``(ii) if the State provides for reasonable fees 
                for the access referred to in subparagraph (A), to 
                establish such fees in accordance with guidelines 
                developed and published by the State that set schedules 
                for such fees.''.

SEC. 407. CONSUMER CREDIT PROTECTION ACT AMENDMENTS.

    (a) Priority of Debts.--Title III of the Consumer Credit Protection 
Act (15 U.S.C. 1671 et seq.) is amended by adding at the end the 
following:
``Sec. 308. Priority of debts
    ``If an individual's disposable earnings are not sufficient to 
pay--
            ``(1) a garnishment intended to satisfy a Federal debt; and
            ``(2) a garnishment intended to satisfy a debt related to 
        the support of any child,
the Federal debt shall be satisfied through garnishment only after the 
debt related to support of a child has been satisfied.''.
    (b) Additional Indebtedness in Anti-Discharge Section.--Section 304 
of such Act (15 U.S.C. 1674) is amended--
            (1) by redesignating subsection (b) as subsection (c);
            (2) in subsection (c) (as so redesignated) by striking 
        ``subsection (a) of''; and
            (3) by inserting after subsection (a) the following:
    ``(b) No employer may discharge any employee by reason of the fact 
that the earnings of the employee have been subjected to more than one 
indebtedness, if all but one of the indebtedness arise from one or more 
orders for the support of a child.''.
    (c) Clerical Amendment.--The table of sections at the beginning of 
title III of the Consumer Credit Protection Act is amended by adding at 
the end the following:

``308. Priority of debts.''.

SEC. 408. STATES REQUIRED TO ENACT THE UNIFORM INTERSTATE FAMILY 
              SUPPORT ACT.

    (a) In General.--Section 466 of the Social Security Act (42 U.S.C. 
666) is amended by adding at the end the following:
    ``(f) In order to satisfy section 454(20)(A), each State must have 
in effect laws which adopt the officially approved version of the 
Uniform Interstate Family Support Act adopted by the National 
Conference of Commissioners on Uniform State Laws in August 1992.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to payments under part D of title IV of the Social Security Act 
for calendar quarters ending 2 or more years after the date of the 
enactment of this Act.

                                 <all>

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