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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4318 Introduced in House (IH)]

103d CONGRESS
  2d Session
                                H. R. 4318

To reduce reliance on public assistance by improving education and job 
training programs, strengthening support services and case management, 
  eliminating penalties against two-parent families, allowing welfare 
  recipients to keep more of their earnings and benefits as they move 
     into the workforce, and increasing child support enforcement.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             April 28, 1994

Ms. Woolsey (for herself and Mr. Regula) introduced the following bill; 
    which was referred jointly to the Committees on Ways and Means, 
              Education and Labor, and Energy and Commerce

                            August 10, 1994

Additional sponsors: Mrs. Clayton, Mrs. Unsoeld, Mr. Yates, Mr. Frost, 
Ms. Roybal-Allard, Ms. Pelosi, Mr. Becerra, Mr. Scott, Mr. Hamburg, Mr. 
 Mineta, Mr. Farr of California, Mr. Matsui, Mr. Miller of California, 
 Mr. Gene Green of Texas, Mr. Martinez, Miss Collins of Michigan, Mr. 
                   Barlow, Mr. Hefner, and Mr. Studds

_______________________________________________________________________

                                 A BILL

 
To reduce reliance on public assistance by improving education and job 
training programs, strengthening support services and case management, 
  eliminating penalties against two-parent families, allowing welfare 
  recipients to keep more of their earnings and benefits as they move 
     into the workforce, and increasing child support enforcement.

    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 ``Working Off Welfare Act of 1994''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
                        TITLE I--WELFARE REFORM

          Subtitle A--Aid To Families With Dependent Children

Sec. 101. Determination of State standard of need.
Sec. 102. Elimination of restrictions on ``fill the gap'' policies.
Sec. 103. Maintenance of benefit levels.
Sec. 104. Income disregards.
Sec. 105. Elimination of rules that treat families differently based on 
                            number of parents in the home.
Sec. 106. Modification of child support disregard.
Sec. 107. Treatment of stepparent income.
Sec. 108. Availability of child care and medicaid benefits to persons 
                            eligible for but not receiving AFDC.
Sec. 109. Coordination of services.
Sec. 110. Expenditure of JOBS funds for self-initiated activities.
Sec. 111. Emphasis on certain types of jobs.
Sec. 112. Limited class preparation time considered participation in 
                            the JOBS program.
Sec. 113. School attendance by teens considered participation in the 
                            JOBS program.
Sec. 114. Performance standards using self-sufficiency standards.
Sec. 115. Activities under the JOBS program.
Sec. 116. Increase in JOBS program funding.
Sec. 117. Increase in JOBS matching rate.
Sec. 118. Increase in required JOBS participation rates.
Sec. 119. Simplification of reporting requirements.
Sec. 120. State caseworker training programs.
Sec. 121. Use of JOBS funds for certain other purposes.
Sec. 122. Case management.
Sec. 123. Child care benefits.
Sec. 124. Extension of transitional child care and medicaid benefits.
Sec. 125. Treatment of certain services for purposes of contract 
                            authority.
                  Subtitle B--Earned Income Tax Credit

Sec. 131. Recommendations for quarterly payments of earned income 
                            credit.
       Subtitle C--Microenterprise and Small Business Development

Sec. 141. Disregard of income and resources designated for education, 
                            training, and employability.
Sec. 142. Disregard of income and resources related to self-employment.
                       Subtitle D--Effective Date

Sec. 151. Effective date.
             TITLE II--FEDERAL JOB TRAINING PROGRAM REFORMS

                    Subtitle A--Studies and Reports

Sec. 201. Departments of Education, Health and Human Services, and 
                            Labor studies and reports.
Sec. 202. General Accounting Office study and report.
    Subtitle B--Economic Self-Sufficiency Standards for Federal Job 
                           Training Programs

Sec. 211. Establishment of standards.
Sec. 212. Poverty line and regional housing based formula.
Sec. 213. Family, housing, and related factors based formula.
Sec. 214. Economic self-sufficiency defined.
                       Subtitle C--Effective Date

Sec. 221. Effective date.
                  TITLE III--CHILD SUPPORT ENFORCEMENT

Sec. 301. National child support order registry.
Sec. 302. Modification of W-4 reporting requirements to provide for 
                            reporting of child support obligations of 
                            employees.
Sec. 303. Collection of child support.
Sec. 304. Distribution of portion of child support collected.
Sec. 305. Outreach and accessibility.
Sec. 306. Commission on Child Support Guidelines.
Sec. 307. Resources.
Sec. 308. Paternity establishment procedures.
Sec. 309. Coordination of collection activities.
Sec. 310. Inclusion in consumer credit reports of information on 
                            overdue child support obligations of the 
                            consumer.
Sec. 311. Effective date.

                        TITLE I--WELFARE REFORM

          Subtitle A--Aid To Families With Dependent Children

SEC. 101. DETERMINATION OF STATE STANDARD OF NEED.

    (a) State Plan Requirement.--Section 402(a) of the Social Security 
Act (42 U.S.C. 602(a)) is amended--
            (1) in paragraph (44), by striking ``and'' after the 
        semicolon;
            (2) in paragraph (45), by striking the period and inserting 
        ``; and''; and
            (3) by inserting after paragraph (45) the following:
            ``(46) provide that the State's standard of need for a 
        family shall be determined in accordance with subsection 
        (d).''.
    (b) Rules for Determining Standard of Need.--Section 402 of such 
Act (42 U.S.C. 602) is amended by inserting after subsection (c) the 
following:
    ``(d)(1) At the time of each otherwise required reevaluation of a 
State's standard of need, the State shall elect to determine its 
standard of need in accordance with paragraph (2), (3), or (4).
    ``(2) A State that elects to determine its standard of need in 
accordance with this paragraph shall set its standard of need for any 
family of a certain size and composition at a level that is not less 
than the sum of--
            ``(A) the applicable living standard for such a family; and
            ``(B) the amount (if any) by which the weighted average 
        housing costs for the State, adjusted by the State (subject to 
        the approval of the Secretary) for the size of such a family, 
        exceeds 30 percent of the applicable living standard.
    ``(3) A State that elects to determine its standard of need in 
accordance with this paragraph shall set its standard of need for any 
family of a certain size and composition that resides in a market area 
in the State at a level that is not less than the sum of--
            ``(A) the applicable living standard for such a family; and
            ``(B) the amount (if any) by which the average housing 
        costs for the market area, adjusted by the State (subject to 
        the approval of the Secretary) for the size of such a family, 
        exceeds 30 percent of the applicable living standard.
    ``(4) A State that elects to determine its standard of need in 
accordance with this paragraph shall set its standard of need for a 
family of a certain size and composition at a level equal to the 
greater of--
            ``(A) the level determined under paragraph (2) for such a 
        family; or
            ``(B) such level as the State determines is appropriate for 
        such a family, after taking into account--
                    ``(i) child care costs;
                    ``(ii) health care costs;
                    ``(iii) transportation costs;
                    ``(iv) fair market rents for a dwelling unit of 
                adequate size;
                    ``(v) food costs; and
                    ``(vi) work-related costs.
    ``(5) As used in this subsection:
            ``(A) The term `applicable living standard' means, with 
        respect to a family, 130 percent of 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) for a family of the 
        same size as the family.
            ``(B) The term `weighted average housing costs' means, with 
        respect to a State, the sum of the weighted average housing 
        costs for each market area part or all of which is in the 
        State.
            ``(C) The term `weighted average housing costs' means, with 
        respect to a market area--
                    ``(i) the average housing costs for the market 
                area; multiplied by
                    ``(ii) the percentage of the population of the 
                State that resides in the market area.
            ``(D) The term `average housing costs' means, with respect 
        to a market area, the fair market rental established by the 
        Secretary of Housing and Urban Development under section 8(a) 
        of the United States Housing Act of 1937 for the market area.
            ``(E) The term `market area' shall have the same meaning 
        such term has for purposes of determining fair market rentals 
        under section 8(a) of the United States Housing Act of 1937.''.

SEC. 102. ELIMINATION OF RESTRICTIONS ON ``FILL THE GAP'' POLICIES.

    Section 402(a)(28) of the Social Security Act (42 U.S.C. 602(a)) is 
amended--
            (1) by inserting ``(A)'' after ``(28)'';
            (2) by adding ``or'' at the end; and
            (3) by adding below the end the following:
            ``(B) at the option of a State to which subparagraph (A) 
        does not apply, provide that, in addition to the amount of aid 
        otherwise payable to a family for a month under the State plan, 
        the State may pay to the family the amount collected in the 
        month as child support with respect to a dependent child in the 
        family that is not otherwise disregarded from income pursuant 
        to paragraph (8)(A)(vi), to the extent that the aggregate of 
        such collected amount, the amount of the aid otherwise payable 
        to the family for the month, and an amount equal to the other 
        income of the family not disregarded from income for the month 
        pursuant to paragraph (8) does not exceed the State's standard 
        of need for a family of the same composition;''.

SEC. 103. MAINTENANCE OF BENEFIT LEVELS.

    (a) In General.--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) in paragraph (45), by striking ``and'' after the 
        semicolon;
            (2) in paragraph (46), by striking the period and inserting 
        ``; and''; and
            (3) by inserting after paragraph (46) the following:
            ``(47) provide that the maximum amount of aid payable for 
        any month to a family under the State plan shall not be reduced 
        below the maximum amount of aid so payable for January 1994 to 
        a family of the same composition.''.
    (b) Exemption From Waiver Authority.--Section 1115(a)(1) of such 
Act (42 U.S.C. 1315(a)(1)) is amended by inserting ``(other than 
subsection (a)(47))'' after ``402''.

SEC. 104. INCOME DISREGARDS.

    Section 402(a)(8) of the Social Security Act (42 U.S.C. 602(a)(8)) 
is amended--
            (1) in subparagraph (A)--
                    (A) by striking clause (ii);
                    (B) in clause (iii), by striking ``child, relative, 
                or other individual specified in clause (ii)'' and 
                inserting ``child or relative applying for or receiving 
                aid to families with dependent children, or of any 
                other individual living in the same home as such 
                relative and child) whose needs are taken into account 
                in making such determination''; and
                    (C) in clause (iv)--
                            (i) in subclause (I), by striking ``$30'' 
                        and inserting ``$200''; and
                            (ii) in subclause (II), by striking ``one-
                        third'' and inserting ``not less than \1/3\ and 
                        not more than \2/3\''; and
            (2) in subparagraph (B)--
                    (A) by striking clause (ii);
                    (B) by striking ``--'' and all that follows through 
                ``(i)''; and
                    (C) by redesignating subclauses (I), (II), and 
                (III) of clause (i) as clauses (i), (ii), and (iii), 
                respectively.

SEC. 105. ELIMINATION OF RULES THAT TREAT FAMILIES DIFFERENTLY BASED ON 
              NUMBER OF PARENTS IN THE HOME.

    (a) In General.--Section 402(a) of the Social Security Act (42 
U.S.C. 602(a)) is amended by striking paragraph (41).
    (b) Conforming Amendments.--
            (1) Section 402(a)(19)(B)(i)(II) of such Act (42 U.S.C. 
        602(a)(19)(B)(i)(II)) is amended by striking ``(and'' and all 
        that follows through ``407(b)(2)(B)(i))''.
            (2) Section 402(a)(19)(D) of such Act (42 U.S.C. 
        602(a)(19)(D)) is amended by striking ``eligible'' and all that 
        follows through ``earner'' and inserting ``in which both 
        parents are living at home''.
            (3) Section 402(a)(19)(G)(i) of such Act (42 U.S.C. 
        602(a)(19)(G)(i)) is amended--
                    (A) in subclause (I), by striking ``(whether or not 
                section 407 applies)''; and
                    (B) in subclause (II)--
                            (i) by striking ``which is eligible for aid 
                        to families with dependent children by reason 
                        of section 407'' and inserting ``in which both 
                        parents are living at home''; and
                            (ii) by striking ``the needs of such spouse 
                        shall also not'' and inserting ``the spouse 
                        shall be required to participate in the program 
                        and, unless the spouse fails without good cause 
                        to so participate, the needs of the spouse 
                        shall''.
            (4) Section 402(a)(38)(B) of such Act (42 U.S.C. 
        602(a)(38)(B)) is amended by striking ``or in section 407(a)''.
            (5) Section 402(a) of such Act (42 U.S.C. 602(a)) is 
        amended by striking paragraph (42).
            (6) Section 403(l)(4)(A)(i) of such Act (42 U.S.C. 
        603(l)(4)(A)(i)) is amended by striking ``family eligible'' and 
        all that follows through ``earner'' and inserting ``2-parent 
        family''.
            (7) Section 406(a)(1) of such Act (42 U.S.C. 606(a)(1)) is 
        amended by striking ``who has been deprived'' and all that 
        follows through ``incapacity of a parent''.
            (8) Section 406(b)(1) of such Act (42 U.S.C. 606(b)(1)) is 
        amended by striking ``and if such relative'' and all that 
        follows through ``section 407''.
            (9) Section 407 of such Act (42 U.S.C. 607) is hereby 
        repealed.
            (10) Section 472(a) of such Act (42 U.S.C. 672(a)) is 
        amended by striking ``or of section 407''.
            (11) Section 473(a)(2)(A)(i) of such Act (42 U.S.C. 
        672(a)(2)(A)(i)) is amended by striking ``or section 407''.
            (12) Section 1115(b) of such Act (42 U.S.C. 1315(b)) is 
        amended by striking paragraph (5).
            (13) Section 1115 of such Act (42 U.S.C. 1315) is amended 
        by striking subsection (d).
            (14) Section 1902(a)(10)(A)(i) of such Act (42 U.S.C. 
        1396a(a)(10)(A)(i)) is amended by striking subclause (V) and by 
        redesignating subclauses (VI) and (VII) as subclauses (V) and 
        (VI), respectively.
            (15) Section 1905 of such Act (42 U.S.C. 1396d) is amended 
        by striking subsection (m).
            (16) Section 1905(n)(1) of such Act (42 U.S.C. 1396d(n)(1)) 
        is amended--
                    (A) in subparagraph (A)--
                            (i) by striking ``(or'' and all that 
                        follows through ``407)''; and
                            (ii) by adding ``or'' at the end; and
                    (B) by striking subparagraph (B).
            (17) Section 204(b)(2) of the Family Support Act of 1988 
        (42 U.S.C. 681 note) is amended by striking ``1998'' and 
        inserting ``1999''.

SEC. 106. MODIFICATION OF CHILD SUPPORT DISREGARD.

    (a) In General.--Section 402(a)(8)(A)(vi) of the Social Security 
Act (42 U.S.C. 602(a)(8)(A)(vi)) is amended to read as follows:
                    ``(vi) shall disregard \1/2\ of the amount of any 
                child support payment received with respect to any 
                dependent child in any family applying for or receiving 
                aid under the State plan (and \1/2\ of any support 
                payment collected and paid to any such family under 
                section 457(b));''.
    (b) Conforming Amendments.--Section 457(b)(1) of such Act (42 
U.S.C. 657(b)(1)) is amended by striking ``the first $50'' each place 
such term appears and inserting ``a dollar amount equal to \1/2\''.

SEC. 107. TREATMENT OF STEPPARENT INCOME.

    (a) Option of Family to Have Needs of Stepparent Considered.--
Section 402(a)(7)(A) of the Social Security Act (42 U.S.C. 
602(a)(7)(A)) is amended by inserting ``, (at the option of such 
relative) of any stepparent of the child (living in the same home as 
such child and relative),'' before ``, or of any other individual''.
    (b) Modification of Stepparent Income Disregard.--Section 
402(a)(31) of such Act (42 U.S.C. 602(a)(31)) is amended--
            (1) by inserting ``if the needs of a stepparent of the 
        dependent child living in the same home as the child are not 
        considered'' before ``in making'';
            (2) by striking ``dependent child's stepparent living in 
        the same home as such child'' and inserting ``stepparent''; and
            (3) by adding at the end of subparagraph (B) the following: 
        ``or, if greater, 130 percent of 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 such a 
        family,''.

SEC. 108. AVAILABILITY OF CHILD CARE AND MEDICAID BENEFITS TO PERSONS 
              ELIGIBLE FOR BUT NOT RECEIVING AFDC.

    (a) Child Care.--Section 402(g)(1)(A)(i)(I) of the Social Security 
Act (42 U.S.C. 602(g)(1)(A)(i)(I)) is amended by inserting ``(whether 
or not the family is a recipient of aid under the State plan under this 
part)'' before the comma.
    (b) Medicaid.--Section 402(a) of such Act (42 U.S.C. 602(a)), as 
amended by sections 101(a) and 103 of this Act, is amended--
            (1) in paragraph (46), by striking ``and'' after the 
        semicolon;
            (2) in paragraph (47), by striking the period and inserting 
        ``; and''; and
            (3) by inserting after paragraph (47) the following:
            ``(48) provide that--
                    ``(A) a family eligible for aid under the State 
                plan approved under this part shall be considered 
                eligible for medical assistance under the State plan 
                approved under title XIX, whether or not the family is 
                a recipient of aid under the State plan approved under 
                this part; and
                    ``(B) the State shall make a reasonable effort to 
                inform all persons who may be eligible for assistance 
                under the State plan approved under this part of the 
                availability of child care under section 402(g), and 
                the availability of medical assistance under the State 
                plan approved under title XIX without application for 
                aid under the State plan approved under this part.''.

SEC. 109. COORDINATION OF SERVICES.

    (a) In General.--Section 402(a) of such Act (42 U.S.C. 602(a)), as 
amended by sections 101(a), 103, and 108(b) of this Act, is amended--
            (1) in paragraph (47), by striking ``and'' after the 
        semicolon;
            (2) in paragraph (48), by striking the period and inserting 
        ``; and''; and
            (3) by inserting after paragraph (48) the following:
            ``(49) provide that the State agency shall--
                    ``(A) establish at least 1 convenient location in 
                each community (if practicable, as defined by the 
                Secretary in regulations) at which a person may apply 
                for and (if appropriate) receive, directly or through 
                referral to the appropriate provider, in appropriate 
                languages and in a culturally sensitive manner--
                            ``(i) aid under the State plan;
                            ``(ii) employment and education counseling;
                            ``(iii) child care;
                            ``(iv) health care;
                            ``(v) transportation assistance;
                            ``(vi) housing assistance;
                            ``(vii) child support services; and
                            ``(viii) other types of counseling and 
                        support services; and
                    ``(B) assign to each recipient of aid under the 
                State plan, and to each applicant for such aid (within 
                30 days after the date of application), a case manager 
                who--
                            ``(i) is knowledgeable about community 
                        resources;
                            ``(ii) is qualified to refer the applicant 
                        or recipient to appropriate education and 
                        training opportunities, employment programs, 
                        and needed health and social services; and
                            ``(iii) is required to coordinate the 
                        provision of benefits and services by the State 
                        to the applicant or recipient, until the 
                        applicant or recipient is no longer eligible 
                        for--
                                    ``(I) aid under the State plan;
                                    ``(II) child care guaranteed by the 
                                State in accordance with section 
                                402(g); and
                                    ``(III) medical assistance under 
                                the State plan approved under title 
                                XIX.''.
    (b) Staffing Guidelines.--Section 402 of such Act (42 U.S.C. 602) 
is amended by adding at the end the following:
    ``(j)(1) The Secretary shall establish guidelines for the staffing 
of the State agencies referred to in subsection (a)(3) that include 
recommendations for qualifications of personnel employed by such 
agencies and for appropriate caseload size.
    ``(2) Every 2 years, each State shall report to the Secretary on--
            ``(A) the extent to which the State is staffing the State 
        agencies referred to in subsection (a)(3) in accordance with 
        the guidelines established pursuant to paragraph (1) of this 
        subsection; and
            ``(B) to the extent the State is not doing so, how the 
        State is carrying out the provisions of the State plan required 
        by subsection (a)(49).''.

SEC. 110. EXPENDITURE OF JOBS FUNDS FOR SELF-INITIATED ACTIVITIES.

    (a) In General.--Section 403(l) of the Social Security Act (42 
U.S.C. 603(l)) is amended by adding at the end the following:
    ``(5) For purposes of this subsection, to the extent that a State 
elects to pay, and pays, the costs of school or training described in 
section 402(a)(19)(F)(i) for an individual participating in the program 
of the State under part F, such costs shall be considered expenditures 
of the State to carry out the program.''.
    (b) Conforming Amendments.--Section 402(a)(19)(F) of such Act (42 
U.S.C. 602(a)(19)(F)) is amended--
            (1) by adding ``and'' at the end of clause (ii);
            (2) by striking clause (iii); and
            (3) by redesignating clause (iv) as clause (iii).

SEC. 111. EMPHASIS ON CERTAIN TYPES OF JOBS.

    Section 485(e) of the Social Security Act (42 U.S.C. 685(e)) is 
amended by inserting ``, especially jobs in industries that utilize new 
technologies, and in environmental engineering, environmental cleanup, 
advanced telecommunications, transportation, infrastructure, or 
computers, jobs that pay wages sufficient to meet or exceed the State's 
standard of need, and jobs in fields in which women constitute less 
than 25 percent of the workforce,'' before the period.

SEC. 112. LIMITED CLASS PREPARATION TIME CONSIDERED PARTICIPATION IN 
              THE JOBS PROGRAM.

    Section 403(l)(3)(D) of the Social Security Act (42 U.S.C. 
603(l)(3)(D)) is amended--
            (1) by inserting ``(i)'' after ``(D)''; and
            (2) by adding at the end the following:
    ``(ii) For purposes of this paragraph, for each full hour spent by 
an individual in a postsecondary course of education, 1 hour spent by 
the individual preparing for the course shall be determined to be 
participation by the individual for 1 hour in the program under part 
F.''.

SEC. 113. SCHOOL ATTENDANCE BY TEENS CONSIDERED PARTICIPATION IN THE 
              JOBS PROGRAM.

    Section 403(l)(3)(D) of the Social Security Act (42 U.S.C. 
603(l)(3)(D)), as amended by section 112 of this Act, is amended by 
adding at the end the following:
    ``(iii) For purposes of this paragraph, the hours an individual 
spends in school shall be determined to be hours of participation in 
the program under part F if the individual--
            ``(I) has not attained 20 years of age;
            ``(II) is a custodial parent or pregnant, or has attained 
        16 years of age; and
            ``(III) is attending school in accordance with the 
        employability plan developed for the individual pursuant to 
        section 482(b)(3).''.

SEC. 114. PERFORMANCE STANDARDS USING SELF-SUFFICIENCY STANDARDS.

    Section 487 of the Social Security Act (42 U.S.C 687) is amended--
            (1) in subsection (a)(2), by inserting ``, shall require 
        each State operating a program under this part to measure the 
        extent to which program participants become self-sufficient (as 
        defined in section 481(a)) within 2 years after beginning such 
        participation,'' before ``and shall''; and
            (2) by adding at the end the following:
    ``(d) Beginning with fiscal year 1998, each State operating a 
program under this part shall annually submit to the Secretary a report 
on the numbers and percentages of program participants who become self-
sufficient (as defined in section 481(a)) within 2 years after 
beginning such participation, and the extent to which the percentage of 
such participants becoming self-sufficient has reached a target level 
determined by the Secretary (which shall not be less than 20 percent 
for fiscal year 1998).''.

SEC. 115. ACTIVITIES UNDER THE JOBS PROGRAM.

    (a) Purpose.--Section 481(a) of the Social Security Act (42 U.S.C. 
681(a)) is amended to read as follows:
    ``(a) Purpose.--The purpose of this part is to help needy families 
with children obtain the education, training, and employment that will 
enable them to become self-sufficient as quickly as possible. For 
purposes of this part, the term `self-sufficient' means gainfully 
employed in a job which, together with the family's other income, 
provides income sufficient to meet or exceed the State's standard of 
need determined under section 402(d) for a family of the same size and 
composition as the family.''.
    (b) State Plan Required to Include Description of State Efforts to 
Help Certain Participants Become Self-Sufficient.--Section 482(a)(1)(B) 
of such Act (42 U.S.C. 482(a)(1)(B)) is amended by striking ``and 
(iii)'' and inserting ``(iii) a description of the policies and 
practices of the State designed to ensure that (I) individuals who need 
educational activities (within the meaning of subsection 
(d)(1)(A)(i)(I)) to assist them in becoming self-sufficient are placed 
in programs with clear goals, benchmarks and timetables for measuring 
progress, and periodic reassessments to determine the continued 
appropriateness of their participation in such activities, and (II) 
individuals who need job skills training to become employed in their 
target occupation are placed in training programs in which the provider 
of training provides participants who successfully complete the 
training program with a certificate of mastery indicating the 
occupation for which the participant is qualified, and (iv)''.
    (c) Assessment of Needs and Skills of Participants; Identification 
of Target Occupations; Development of Employability Plans.--Section 
482(b) of such Act (42 U.S.C. 682(b)) is amended to read as follows:
    ``(b) Assessment of Needs and Skills of Participants; 
Identification of Target Occupations; Development of Employability 
Plans; Monitoring.--
            ``(1) Assessment.--
                    ``(A) Assignment of case manager.--The State must 
                assign a case manager to each participant in the 
                program under this part.
                    ``(B) Duties of case manager.--The case manager 
                shall be responsible for ensuring that the participant 
                receives an assessment of--
                            ``(i) the educational, child care, and 
                        other supportive services needs of the family 
                        of the participant;
                            ``(ii) the skills, prior work experience, 
                        and employability of the participant; and
                            ``(iii) the ability of the participant 
                        (with appropriate services) to become self-
                        sufficient.
                    ``(C) Educational and vocational testing.--The 
                assessment must include educational and vocational 
                testing in order to determine the skills of the 
                participant, if necessary to help identify a target 
                occupation for the participant.
            ``(2) Target occupation.--
                    ``(A) Identification.--On the basis of the 
                assessment and testing provided for pursuant to 
                paragraph (1), the participant must, in consultation 
                with the State, identify 1 or more target occupations 
                for the participant. The State shall use local labor 
                market information (which shall be provided annually by 
                the State department of labor) to assist the 
                participant in identifying a target occupation.
                    ``(B) Definition.--As used in this subsection, the 
                term `target occupation' means, with respect to a 
                participant, an occupation that provides an opportunity 
                for the participant to become self-sufficient.
            ``(3) Employability plan.--
                    ``(A) In general.--On the basis of the assessment 
                and testing provided for pursuant to paragraph (1), the 
                State must, in consultation with the participant, 
                develop (and, for good cause, amend) an employability 
                plan for the participant which must--
                            ``(i) specify a target occupation for the 
                        participant;
                            ``(ii) detail the program of activities, 
                        including timetables and benchmarks for 
                        progress in and completion of each activity, 
                        that the participant and the State will engage 
                        in to help the participant become employed in 
                        the target occupation;
                            ``(iii) describe the child care, 
                        transportation, and other supportive services 
                        to be provided to the family of the 
                        participant, including, for each child of the 
                        participant, the child care services to be 
                        provided to the child or a statement that sets 
                        forth the reasons why child care services are 
                        not needed for the child; and
                            ``(iv) be signed by the case manager, the 
                        participant, and all providers of services 
                        identified in the plan.
                    ``(B) Procedures for participants who fail to 
                demonstrate basic literacy.--
                            ``(i) Testing for learning disabilities.--
                        The State agency must develop procedures for 
                        screening participants who fail to demonstrate 
                        basic literacy for visual or auditory deficits 
                        and such other disabilities as the Secretary 
                        may specify in regulations.
                            ``(ii) Regulations.--The Secretary, in 
                        consultation with the Secretary of Education, 
                        shall develop appropriate regulations and 
                        guidance to ensure that--
                                    ``(I) State assessment and 
                                reassessment procedures seek to 
                                identify potential learning 
                                disabilities that could affect the 
                                ability of individuals to participate 
                                in the program under this part and 
                                become self-sufficient; and
                                    ``(II) subject to available 
                                resources, the State provides such 
                                services as may be required to address 
                                the employment-related needs of 
                                participants with learning 
                                disabilities.
                    ``(C) Status of employability plans.--The 
                employability plan shall not be considered a contract.
            ``(4) Monitoring of participant progress.--
                    ``(A) In general.--Not less frequently than every 4 
                months after the development of the employability plan, 
                the case manager shall review with the participant and 
                the providers of services under the plan whether the 
                participant is making good and satisfactory progress in 
                the program of activities under the employability plan.
                    ``(B) Good and satisfactory progress.--The State 
                shall determine what constitutes good and satisfactory 
                progress for purposes of subparagraph (A), except that 
                a participant shall be considered to be making good and 
                satisfactory progress in a program of activities under 
                an employability plan if the participant has met the 
                requirements of the employability plan in a timely 
                manner.
                    ``(C) Effects of failure to make good and 
                satisfactory progress.--If the case manager determines 
                that the participant has failed to make good and 
                satisfactory progress in the program of activities 
                under the employability plan, or that another program 
                of activities would more quickly enable the participant 
                to become self-sufficient, the case manager may, in 
                consultation with the participant and the providers of 
                services to the participant, propose to amend the 
                employability plan and assign the participant to such 
                other program of activities. If the case manager 
                determines that the failure of the participant is due 
                to a failure of a service provider that was caused by 
                circumstances within the control of the service 
                provider, the case manager shall consider the 
                appropriateness of assigning the participant to another 
                service provider. If the case manager determines that 
                the failure of the participant is due to the refusal of 
                the participant without good cause to comply with the 
                requirements of the program of activities, then section 
                402(a)(19)(G) shall apply.''.
    (d) Availability of Enhanced On-the-Job Training.--Section 482(d) 
of such Act (42 U.S.C. 682(d)) is amended--
            (1) in paragraph (1)(A)(ii)--
                    (A) by striking ``and'' at the end of subclause 
                (III);
                    (B) by striking the period at the end of subclause 
                (IV) and inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(V) enhanced on-the-job training as described in 
                paragraph (4).''; and
            (2) by adding at the end the following:
    ``(4)(A) Any State may offer participants in the program under this 
part the opportunity to receive enhanced on-the-job training consisting 
of employment by an employer in a productive capacity at a wage that is 
not less than the entry-level wage of the employer, under the following 
conditions:
            ``(i) The employer must set a target job for the 
        participant in the employer's firm and will, if attained, allow 
        the participant to be self-sufficient.
            ``(ii) The employer must agree to participate in a training 
        plan for the participant, developed in collaboration with, and 
        approved by, the employer, that will qualify the participant 
        for the target job.
            ``(iii) The employer must agree to provide up to 10 hours 
        per week of release time for the participant for training by an 
        approved education provider, either on or off the employer's 
        premises, in basic or vocational skills required by the target 
        job. For purposes of the preceding sentence, the term `approved 
        education provider' means a provider of educational services 
        that the State agency, after consultation with the State 
        education agency, has approved as qualified to provide enhanced 
        on-the-job training.
            ``(iv) The employer must agree to hire the participant for 
        the target job or an equivalent job when the participant 
        completes the training plan, and to retain the participant in 
        that job for at least 18 months, unless--
                    ``(I) the participant is subject to dismissal for 
                cause; or
                    ``(II) the employer suffers business difficulties 
                that require a reduction in the number of employees 
                including the target job.
            ``(v) The State shall make payments to the employer in an 
        amount equal to a percentage (prescribed by the Secretary in 
        regulations) of the expenditures of the employer with respect 
        to the participant.
    ``(B) If the employer violates any condition set forth in 
subparagraph (A) with respect to a participant, the State agency shall 
not refer other participants to the employer for participation in 
enhanced on-the-job training.''.
    (e) Resolution of Disputes Over Target Occupations and 
Employability Plans.--Section 482(h) of such Act (42 U.S.C. 682(h)) is 
amended--
            (1) by inserting ``(1)'' before ``Each State''; and
            (2) by adding at the end the following:
            ``(2)(A) The State shall, where practicable, defer to 
        reasonable determinations of the participant in identifying a 
        target occupation or developing an employability plan for the 
        participant.
            ``(B) If the participant and the case manager do not agree 
        on a target occupation or on a term or condition of a proposed 
        employability plan for the participant, the case manager shall 
        recommend a target occupation or develop an employability plan 
        for the participant, as the case may be.
            ``(C) Subject to subparagraph (A) of this paragraph, the 
        recommendations of the case manager under subparagraph (B) of 
        this paragraph with respect to a matter in disagreement shall 
        be binding upon the participant and the State, unless the 
        matter is otherwise resolved through the procedures established 
        under paragraph (1).
            ``(D) The State shall ensure that the procedures 
        established under paragraph (1) are available to resolve 
        disputes over the matters described in subparagraph (B) of this 
        paragraph, and shall advise participants of such 
        availability.''.
    (f) Recordkeeping.--Section 482 of such Act (42 U.S.C. 682) is 
amended by adding at the end the following:
    ``(j) Recordkeeping.--The State agency must maintain a computerized 
recordkeeping system approved by the Secretary that contains compatible 
information about each participant in the program under this part, 
including basic demographic data, the employability plan and amendments 
to it, the results of tests and diagnoses, services received, progress 
toward the goals of the employability plan, and job placement.''.
    (g) Long-Term Monitoring.--Section 482 of such Act (42 U.S.C. 682), 
as amended by subsection (f) of this section, is amended by adding at 
the end the following:
    ``(k) Long-Term Monitoring.--The State agency must maintain a 
system for monitoring the employment status, wages, and benefits of 
each participant in the program under this part for at least 18 months 
after such participation is terminated in order to determine the 
success of the program in facilitating long-term self-sufficiency.''.

SEC. 116. INCREASE IN JOBS PROGRAM FUNDING.

    Section 403(k)(3) of the Social Security Act (42 U.S.C. 603(k)(3)) 
is amended by striking subparagraphs (E) and (F) and inserting the 
following:
            ``(E) $1,540,000,000 in the case of the fiscal year 1995,
            ``(F) $1,980,000,000 in the case of the fiscal year 1996,
            ``(G) $2,420,000,000 in the case of the fiscal year 1997,
            ``(H) $2,860,000,000 in the case of the fiscal year 1998, 
        and
            ``(I) $3,300,000,000 in the case of the fiscal year 
        1999.''.

SEC. 117. INCREASE IN JOBS MATCHING RATE.

    (a) In General.--Section 403(l)(1)(A) of the Social Security Act 
(42 U.S.C. 603(l)(1)(A)) is amended--
            (1) by striking ``and'' at the end of clause (i);
            (2) in clause (ii)--
                    (A) by inserting ``but do not exceed the amount 
                equal to 80 percent of the limitation determined under 
                subsection (k)(2) of this section with respect to the 
                State for fiscal year 1994'' after ``clause (i)''; and
                    (B) by striking the period and inserting ``; and''; 
                and
            (3) by adding at the end the following:
            ``(iii) with respect to so much of such expenditures in a 
        fiscal year as exceed 80 percent of the limitation determined 
        under subsection (k)(2) of this section with respect to the 
        State for fiscal year 1994, the lesser of--
                    ``(I) the percentage described in clause (ii) for 
                the type of expenditures involved, increased by 10 
                percentage points; or
                    ``(II) 90 percent.''.
    (b) Increase in Child Care Matching Rate.--Section 402(g)(3)(A)(i) 
of the Social Security Act (42 U.S.C. 602(g)(3)(A)(i)) is amended to 
read as follows:
  ``(3)(A)(i) In the case of amounts expended for child care pursuant 
to paragraph (1)(A) by any State to which section 1108 does not apply, 
the applicable rate for a fiscal year for purposes of section 403(a) 
shall be--
            ``(I) with respect to that portion of the total of such 
        expenditures as does not exceed the total of such expenditures 
        by the State for fiscal year 1994, the Federal medical 
        assistance percentage (as defined in section 1905(b)); and
            ``(II) with respect to the remainder of such expenditures, 
        the lesser of--
                    ``(aa) the percentage described in section 
                403(l)(1)(A)(ii)(II), increased by 10 percentage 
                points; or
                    ``(bb) 90 percent.''.

SEC. 118. INCREASE IN REQUIRED JOBS PARTICIPATION RATES.

    (a) In General.--Section 403(l)(3)(A) of the Social Security Act 
(42 U.S.C. 603(l)(3)(A)) is amended--
            (1) by striking ``and'' at the end of clause (v);
            (2) by striking the period at the end of clause (vi) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(vii) 25 percent, if such year is 1996;
            ``(viii) 30 percent, if such year is 1997;
            ``(ix) 35 percent, if such year is 1998; and
            ``(x) 40 percent, if such year is 1999.''.
    (b) Schedule of Penalties for Failure to Meet Participation 
Rates.--Section 403(l)(3) of such Act (42 U.S.C. 603(l)(3)) is 
amended--
            (1) in subparagraph (A), by inserting ``, without good 
        cause,'' before ``the State's''; and
            (2) by amending subparagraph (E) to read as follows:
    ``(E) The Secretary shall, by regulation, prescribe a schedule of 
penalties to be applied to a State that fails to comply with 
subparagraph (A), the severity of which shall be based on the extent of 
the noncompliance.''.
    (c) Conforming Amendments.--Section 204(b)(2) of the Family Support 
Act of 1988 (42 U.S.C. 681 note) is amended--
            (1) by inserting ``, and amended by section 118(a) of the 
        Working Off Welfare Act of 1994'' after ``this Act''; and
            (2) by striking ``1995'' and inserting ``1999''.

SEC. 119. SIMPLIFICATION OF REPORTING REQUIREMENTS.

    Section 402(a) of such Act (42 U.S.C. 602(a)), as amended by 
sections 101(a), 103, and 108(b) of this Act, is amended--
            (1) in paragraph (47), by striking ``and'' after the 
        semicolon;
            (2) in paragraph (48), by striking the period and inserting 
        ``; and''; and
            (3) by inserting after paragraph (48) the following:
            ``(49) provide that the State--
                    ``(A) may not require a family to report changes in 
                family income until the net amount of such changes, 
                since the most recent such report, equals or exceeds 
                the reporting threshold;
                    ``(B) shall establish the reporting threshold for 
                purposes of subparagraph (A) at an amount which shall 
                be not less than $25 and not more than $100; and
                    ``(C) may not impose a penalty on a family by 
                reason of any failure to report any change in income 
                that the State, pursuant to subparagraph (A), may not 
                require to be reported.''.

SEC. 120. STATE CASEWORKER TRAINING PROGRAMS.

    Section 402(a) of such Act (42 U.S.C. 602(a)), as amended by 
sections 101(a), 103, 108(b), and 119 of this Act, is amended--
            (1) in paragraph (48), by striking ``and'' after the 
        semicolon;
            (2) in paragraph (49), by striking the period and inserting 
        ``; and''; and
            (3) by inserting after paragraph (49) the following:
            ``(50) provide that the State agency shall design and 
        implement a program for the training of caseworkers who provide 
        services under the State plan, under which priority is to be 
        given to training individuals who are caseworkers at the time 
        the program commences, and under which caseworkers should be 
        trained to advise recipients of aid under the State plan of 
        training opportunities in industries that utilize new 
        technologies, or in environmental engineering, environmental 
        cleanup, advanced telecommunications, transportation, 
        infrastructure, or computers, employment for wages sufficient 
        to meet or exceed the State's standard of need, and employment 
        in fields in which women constitute less than 25 percent of the 
        workforce.''.

SEC. 121. USE OF JOBS FUNDS FOR CERTAIN OTHER PURPOSES.

    (a) In General.--Section 403(l)(1) of the Social Security Act (42 
U.S.C. 603(l)(1)) is amended by adding at the end the following:
    ``(C) Expenditures by a State for any of the following shall be 
considered an expense of operating the program of the State under part 
F:
            ``(i) The outstationing of caseworkers at community 
        colleges for the purpose of enhancing access of recipients of 
        aid to families with dependent children to higher education, 
        and the use of such caseworkers to provide linkage between 
        postsecondary educational institutions and the private and 
        public sectors, including private industry councils, chambers 
        of commerce, and unions.
            ``(ii) The entering into of contracts with public or 
        private entities for the creation of apprenticeship programs 
        which address the work and training needs of recipients of aid 
        to families with dependent children (including the expansion of 
        programs by creating additional apprenticeship slots with 
        specific support for such recipients) and under which 
        apprentices will be targeted for jobs in industries that 
        utilize new technologies, in environmental engineering, 
        environmental cleanup, advanced telecommunications, 
        transportation, infrastructure, or computers, for jobs that pay 
        wages sufficient to meet or exceed the State's standard of 
        need, and for jobs in fields in which women constitute less 
        than 25 percent of the workforce.
            ``(iii) The identification of recipients of aid to families 
        with dependent children and secondary school students whose 
        parents are recipients of such aid, the provision to such 
        recipients and such students of information about opportunities 
        in, and the availability of, programs under the Job Training 
        Partnership Act, the School-to-Work Opportunities Act of 1993, 
        or the Carl D. Perkins Vocational and Applied Technology 
        Education Act in their area, and the facilitation of the 
        preparation of such recipients and such students for such 
        programs.
            ``(iv) The non-Federal share of the compensation of 
        students employed in the work-study program under part C of 
        title IV of the Higher Education Act of 1965, and the 
        establishment and implementation of programs similar to the 
        work-study program for recipients of aid to families with 
        dependent children.
            ``(v) The coordination of the program of the State under 
        part F with State and local programs under the School-to-Work 
        Opportunities Act of 1993 in order to provide enhanced 
        opportunities for recipients of aid to families with dependent 
        children to take advantage of such State and local programs.
            ``(vi) The implementation of programs to reduce pregnancy 
        rates and increase graduation rates at schools for which the 
        combined pregnancy and drop-out rate is at least 30 percent, 
        under which participation is required during every month of the 
        year, and under which caseworkers and program administrators 
        work with schools and community health organizations in 
        integrating the program with--
                    ``(I) programs under the School-to-Work 
                Opportunities Act of 1993;
                    ``(II) programs under parts B and C of title II of 
                the Job Training Partnership Act;
                    ``(III) programs under the Carl D. Perkins 
                Vocational and Applied Technology Education Act;
                    ``(IV) school-based recreational programs;
                    ``(V) before- and after-school programs;
                    ``(VI) programs for the discussion of self-esteem, 
                parenting responsibilities, prenatal care and 
                nutrition, and child support responsibilities; and
                    ``(VII) counseling.
            ``(vii) The provision of stabilizing services to enable 
        parents who have not attained 20 years of age to participate in 
        the integrated program described in clause (vi).''.
    (b) Annual Reports on State Efforts to Find Employment for Women.--
Section 402(a) of such Act (42 U.S.C. 602(a)), as amended by sections 
101(a), 103, 108(b), 119, and 120 of this Act, is amended--
            (1) in paragraph (49), by striking ``and'' after the 
        semicolon;
            (2) in paragraph (50), by striking the period and inserting 
        ``; and''; and
            (3) by inserting after paragraph (50) the following:
            ``(51) provide that, not later than December 31 of each 
        year, the State shall submit to the Secretary a report that 
        details the efforts made by the State to place women in fields 
        in which women constitute less than 25 percent of the 
        workforce, the manner in which the State determines which jobs 
        to train women for, and the percentages of men and women that 
        are placed in jobs.''.
    (c) Use of Wage Record Data on Participants in the JOBS Program.--
Section 482(a)(1) of such Act (42 U.S.C. 682(a)(1)) is amended by 
redesignating subparagraphs (C) and (D) as subparagraphs (D) and (E), 
respectively, and by inserting after subparagraph (B) the following:
    ``(C) A State plan under this part must provide that--
            ``(i) the State agency must enter into an agreement with 
        the State agency responsible for administering the State 
        unemployment compensation program, which provides for the 
        ongoing provision of wage record data (with appropriate 
        assurances to protect confidentiality) on participants in the 
        State program operated under this part;
            ``(ii) the State must use such wage record data, in 
        accordance with regulations prescribed by the Secretary and the 
        Secretary of Labor, to measure outcomes of the components of 
        the program, outcomes for providers of services under the 
        program, and the extent to which participants in the program 
        become self-sufficient after such participation;
            ``(iii) the State must use such wage record data to report 
        to the Secretary, pursuant to a schedule prescribed by the 
        Secretary, the average wages of men who entered employment 
        after participation in the program, the average wages of women 
        who entered employment after participation in the program; and
            ``(iv) the State must submit to the Secretary a report that 
        describes the measures that the State has undertaken, since the 
        most recent review and update of the State plan, to reduce any 
        difference between the average wages of such men and the 
        average wages of such women.''.

SEC. 122. CASE MANAGEMENT.

    (a) Elimination of Regulations That Impose Obstacles to the Use of 
a Case Management System.--Not later than the effective date of this 
title, the Secretary of Health and Human Services shall amend the 
regulations prescribed under parts A and F of title IV of the Social 
Security Act so as to remove any obstacle to the implementation by the 
States of case management systems in the program of aid to families 
with dependent children.
    (b) Federal Provision of Case Management Services.--The Office of 
Adolescent Pregnancy Prevention in the Department of Health and Human 
Services may provide referral to appropriate programs and services for 
parents who have not attained 20 years of age and are not recipients of 
aid to families with dependent children under a State plan approved 
under part A of title IV of the Social Security Act.
    (c) Effective Date.--This section shall take effect on the date of 
the enactment of this Act.

SEC. 123. CHILD CARE BENEFITS.

    (a) Expansion of Eligibility; Notice of Eligibility.--Section 
402(g)(1)(A) of the Social Security Act (42 U.S.C. 602(g)(1)(A)) is 
amended--
            (1) in clause (ii)--
                    (A) by inserting ``(I)'' before ``Each'';
                    (B) by striking all that follows ``children'' and 
                inserting ``and the caretaker relative in the family is 
                working''; and
                    (C) by adding after and below the end the 
                following:
    ``(II) Each State agency shall assess the eligibility for child 
care under this clause of each family who ceases to receive aid to 
families with dependent children, without regard to whether the family 
has applied for such care, and in the notice of termination of such 
aid, shall notify the family, in writing and orally, as appropriate, of 
its right to child care under this clause, and include information on 
the steps necessary to obtain such care and on the rights and 
responsibilities of the family with respect to the provision of such 
care.''; and
            (2) in clause (iii), by striking all that follows ``clause 
        (ii)'' and inserting ``until the family's monthly income 
        exceeds 185 percent of 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) for a family of the same 
        size as the family.''.
    (b) Advance Payments.--Section 402(g)(1)(B) of such Act (42 U.S.C. 
602(g)(1)(B)) is amended--
            (1) by inserting ``(i)'' after ``(B)'';
            (2) by redesignating clauses (i) through (v) as subclauses 
        (I) through (V), respectively; and
            (3) by striking the 2nd sentence and inserting the 
        following:
    ``(ii) When the State agency arranges for child care, the agency 
shall take into account the individual needs of the child.
    ``(iii) The State agency shall make advance payments for child care 
assistance to a family eligible for such care if--
            ``(I) an advance is required in order for the family to 
        secure or retain such care;
            ``(II) the provider of such care will not provide such care 
        without payment in advance; or
            ``(III) there will be a delay in reimbursing the caretaker 
        relative in the family for the cost of such care or in applying 
        subsection (a)(8)(A)(iii) to the family.''.
    (c) State Option to Exempt Families Below Poverty Level From 
Contribution Requirement.--Section 402(g)(1)(A)(vii) of such Act (42 
U.S.C. 602(g)(1)(A)(vii)) is amended--
            (1) by inserting ``(I)'' after ``(vii)''; and
            (2) by adding after and below the end the following:
    ``(II) The State may elect not to apply subclause (I) to any family 
whose income 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) for a family of the same size as the family.''.
    (d) Child Care for Families Including a Caretaker Relative Not 
Receiving AFDC.--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) In any case in which child care is determined to be 
necessary for the caretaker relative of a child receiving aid to 
families with dependent children to accept or retain employment, the 
State shall guarantee child care whether or not the caretaker relative 
is receiving such aid, and if the caretaker relative is not receiving 
such aid, the State may apply a sliding fee scale to determine the 
appropriate contribution (if any) to the cost of care to be paid by the 
caretaker.''.
    (e) Authority to Provide for Continuity of Child Care.--Section 
402(g)(1)(A) of such Act (42 U.S.C. 602(g)(1)(A)), as amended by 
subsection (d) of this section, is amended by adding at the end the 
following:
    ``(ix) A State may continue child care assistance without 
interruption during breaks between otherwise allowable activities, and 
for a reasonable period of time after any loss of employment, to ensure 
continuity of child care arrangements for the child or children of a 
family eligible to receive care under this paragraph.''.
    (f) Dependent Care Disregard Not to Be Regarded as a Method of 
Guaranteeing Child Care.--Section 402(g)(1)(B) of such Act (42 U.S.C. 
602(g)(1)(B)), as amended by subsection (b) of this section, is amended 
by adding at the end the following:
    ``(iv) Compliance with subsection (a)(8)(A)(iii) with respect to a 
family shall not be construed to be a guarantee of child care for the 
family pursuant to this subsection.''.

SEC. 124. EXTENSION OF TRANSITIONAL CHILD CARE AND MEDICAID BENEFITS.

    (a) Transitional Child Care Benefits.--Section 304(b) of the Family 
Support Act of 1988 (42 U.S.C. 602 note) is amended--
            (1) by striking ``(1)''; and
            (2) by striking paragraph (2).
    (b) Transitional Medicaid Benefits.--Section 303(f)(2) of such Act 
(42 U.S.C. 602 note) is amended--
            (1) by striking ``(A)''; and
            (2) by striking subparagraphs (B) and (C).

SEC. 125. TREATMENT OF CERTAIN SERVICES FOR PURPOSES OF CONTRACT 
              AUTHORITY.

    Section 485(b) of the Social Security Act (42 U.S.C. 685(b)) is 
amended by adding at the end the following: ``A service shall not be 
considered to be otherwise available on a nonreimbursable basis if the 
service is not appropriate to meet the identified needs of the 
participant to whom the service is to be provided.''.

                  Subtitle B--Earned Income Tax Credit

SEC. 131. RECOMMENDATIONS FOR QUARTERLY PAYMENTS OF EARNED INCOME 
              CREDIT.

    Within 6 months after the date of the enactment of this Act, the 
Secretary of the Treasury shall submit to the Congress recommendations 
for procedures under which the Federal Government could, not less 
frequently than quarterly, make advance payments of the earned income 
credit under section 32 of the Internal Revenue Code of 1986.

       Subtitle C--Microenterprise and Small Business Development

SEC. 141. DISREGARD OF INCOME AND RESOURCES DESIGNATED FOR EDUCATION, 
              TRAINING, AND EMPLOYABILITY.

    (a) Disregard From Resources.--Section 402(a)(7)(B) of the Social 
Security Act (42 U.S.C. 602(a)(7)(B)) is amended--
            (1) by striking ``or'' before ``(iv)''; and
            (2) by inserting ``, or (v) at the option of the State, in 
        the case of a family receiving aid under the State plan (and a 
        family not receiving such aid but which received such aid in at 
        least 1 of the preceding 4 months or became ineligible for such 
        aid during the preceding 12 months because of excessive 
        earnings), any amount not to exceed $8,000 in a qualified asset 
        account (as defined in section 406(i)) of such family'' before 
        ``; and''.
    (b) Disregard From Income.--
            (1) In general.--Section 402(a)(8)(A) of such Act (42 
        U.S.C. 602(a)(8)(A)) is amended--
                    (A) by striking ``and'' at the end of clause (vii); 
                and
                    (B) by inserting after clause (viii) the following 
                new clause:
                    ``(ix) shall disregard any interest or income 
                earned on a qualified asset account (as defined in 
                section 406(i)); and''.
            (2) Nonrecurring lump sum exempt from lump sum rule.--
        Section 402(a)(17) of such Act (42 U.S.C. 602(a)(17)) is 
        amended by adding at the end the following: ``; and that this 
        paragraph shall not apply to earned or unearned income received 
        in a month on a nonrecurring basis to the extent that such 
        income is placed in a qualified asset account (as defined in 
        section 406(i)) the total amounts in which, after such 
        placement, does not exceed $8,000;''.
            (3) Treatment as income.--Section 402(a)(7) of such Act (42 
        U.S.C. 602(a)(7)) is amended--
                    (A) by striking ``and'' at the end of subparagraph 
                (B);
                    (B) by striking the semicolon at the end of 
                subparagraph (C) and inserting ``; and''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(D) shall treat as income any distributions from 
                a qualified asset account (as defined in section 
                406(i)(1)) which do not meet the definition of a 
                qualified distribution under section 406(i)(2);''.
    (c) Qualified Asset Accounts.--Section 406 of such Act (42 U.S.C. 
606) is amended by adding at the end the following:
    ``(i)(1) The term `qualified asset account' means a mechanism 
approved by the State (such as individual retirement accounts, escrow 
accounts, or savings bonds) that allows savings of a family receiving 
aid to families with dependent children to be used for qualified 
distributions.
    ``(2) The term `qualified distributions' means distributions for 
expenses directly related to one or more of the following purposes:
            ``(A) The attendance of a member of the family at any 
        education or training program.
            ``(B) The improvement of the employability (including self-
        employment) of a member of the family (such as through the 
        purchase of an automobile).
            ``(C) The purchase of a home for the family.
            ``(D) A change of the family residence.''.
    (d) Study of Use of Qualified Asset Accounts; Report.--The 
Secretary of Health and Human Services shall conduct a study of the use 
of qualified asset accounts established pursuant to the amendments made 
by this section, and shall report on such study and any recommendations 
for modifications of such amendments to the Committee on Finance of the 
Senate and the Committee on Ways and Means of the House of 
Representatives not later than January 1, 1996.
    (e) Report on AFDC Asset Limit on Automobiles.--Within 3 months 
after the date of the enactment of this Act, the Secretary of Health 
and Human Services shall submit to the Congress a report on--
            (1) the need to revise the limitation, established in 
        regulations pursuant to section 402(a)(7)(B)(i) of the Social 
        Security Act, on the value of a family automobile required to 
        be disregarded by a State in determining the eligibility of the 
        family for aid to families with dependent children under the 
        State plan approved under part A of title IV of such Act; and
            (2) the extent to which such a revision would increase the 
        employability of recipients of such aid.

SEC. 142. DISREGARD OF INCOME AND RESOURCES RELATED TO SELF-EMPLOYMENT.

    (a) State Plan Requirements.--Section 402(a) of the Social Security 
Act (42 U.S.C. 602(a)), as amended by sections 101(a), 103, 108(b), 
119, 120, and 121(b) of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (50);
            (2) by striking the period at the end of paragraph (51) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (51) the following:
            ``(52) at the option of the State, provide that the State 
        agency--
                    ``(A)(i) shall not include as a resource of the 
                family of which a child referred to in paragraph (7)(A) 
                is a member, for purposes of paragraph (7)(B), the 
                first $10,000 of the net worth (assets reduced by 
                liabilities with respect thereto) of all 
                microenterprises (as defined in section 406(j)(1)) 
                owned, in whole or in part, by the child or by a 
                relative or other individual referred to in paragraph 
                (7)(A), for a period not to exceed 2 years; and
                    ``(ii) shall take into consideration as earned 
                income of the family of which the child is a member, 
                only the net profits (as defined in section 406(j)(2)) 
                of such microenterprises, for a period not to exceed 2 
                years; and
                    ``(B) shall ensure that caseworkers are able to 
                properly advise recipients of aid under the State plan 
                of the option of microenterprise as a legitimate route 
                towards self-sufficiency, and that caseworkers 
                encourage recipients of such aid who are interested in 
                starting a microenterprise to participate in a program 
                designed to assist them in such effort.''.
    (b) Definitions.--Section 406 of such Act (42 U.S.C. 606), as 
amended by section 141(c) of this Act, is amended by adding at the end 
the following:
    ``(j)(1) The term `microenterprise' means a commercial enterprise 
which has 5 or fewer employees, 1 or more of whom owns the enterprise.
    ``(2) The term `net profits' means, with respect to a 
microenterprise, the gross receipts of the business, minus--
            ``(A) payments of principal or interest on a loan to the 
        microenterprise;
            ``(B) transportation expenses;
            ``(C) inventory costs;
            ``(D) expenditures to purchase capital equipment;
            ``(E) cash retained by the microenterprise for future use 
        by the business;
            ``(F) taxes paid by reason of the business;
            ``(G) if the business is covered under a policy of 
        insurance against loss--
                    ``(i) the premiums paid for such insurance; and
                    ``(ii) the losses incurred by the business that are 
                not reimbursed by the insurer solely by reason of the 
                existence of a deductible with respect to the insurance 
                policy;
            ``(H) the reasonable costs of obtaining 1 motor vehicle 
        necessary for the conduct of the business; and
            ``(I) the other expenses of the business.''.
    (c) Inclusion of Microenterprise Training and Activities in the 
JOBS Program.--
            (1) In general.--Section 482(d)(1) of such Act (42 U.S.C. 
        682(d)(1)) is amended by adding at the end the following:
    ``(C) The services and activities referred to in subparagraph (A)--
            ``(i) in the case that at least 3 percent of the adult 
        recipients of aid under the State plan approved under part A 
        (as of the close of the immediately preceding fiscal year) 
        elect to participate in microenterprise activities, shall 
        include programs described in paragraph (5); or
            ``(ii) in the case that not more than 3 percent of the 
        adult recipients of such aid elect to participate in 
        microenterprise activities, may include programs described in 
        paragraph (5).''.
            (2) Microenterprise programs.--Section 482(d) of such Act 
        (42 U.S.C. 682(d)), as amended by section 115(d)(2) of this 
        Act, is amended by adding at the end the following:
    ``(5) The programs described in this paragraph are programs of 
public and private organizations, agencies, and other entities 
(including nonprofit and for-profit entities) to enable such entities 
to facilitate economic development by--
            ``(A) providing technical assistance, advice, and business 
        support services (including assistance, advice, and support 
        relating to business planning, financing, marketing, and other 
        microenterprise development activities) to owners of 
        microenterprises and persons developing microenterprises; and
            ``(B) providing general support (such as peer support and 
        self-esteem programs) to owners of microenterprises and persons 
        developing microenterprises.''.

                       Subtitle D--Effective Date

SEC. 151. EFFECTIVE DATE.

    (a) In General.--This title and the amendments made by this title 
shall take effect on October 1, 1995, and shall apply to payments under 
part A of title IV, and title XIX, of the Social Security Act for 
quarters beginning on or after such date.
    (b) Early Applicability at State Option.--
            (1) Election.--Any State may elect for this title and the 
        amendments made by this title to apply to the State for 
        quarters beginning before the end of the date specified in 
        subsection (a).
            (2) Early applicability.--This title and the amendments 
        made by this title shall apply to payments to a State under 
        part A of title IV, and title XIX, of the Social Security Act 
        for quarters beginning after the Secretary of Health and Human 
        Services receives from the State a notice that the State has 
        made the election described in paragraph (1).

             TITLE II--FEDERAL JOB TRAINING PROGRAM REFORMS

                    Subtitle A--Studies and Reports

SEC. 201. DEPARTMENTS OF EDUCATION, HEALTH AND HUMAN SERVICES, AND 
              LABOR STUDIES AND REPORTS.

    (a) Studies.--The Secretary of Education, the Secretary of Health 
and Human Services, and the Secretary of Labor shall each conduct a 
study to review the effectiveness of the Federal job training programs 
under the jurisdictions of each such Secretary, respectively, 
including--
            (1) the extent to which such programs are successful at 
        placing both male and female participants into unsubsidized 
        employment; and
            (2) the average starting wages and benefits of such 
        participants in such employment.
    (b) Reports.--Not later than 1 year after the date of the enactment 
of this Act, each Secretary specified in subsection (a) shall submit to 
the Congress a report containing--
            (1) the results of the study carried out by each such 
        Secretary under subsection (a), respectively; and
            (2) recommendations for legislation to increase the 
        effectiveness of the Federal job training programs under the 
        jurisdiction of each such Secretary, respectively, including 
        recommendations--
                    (A) to change or eliminate provisions of law or 
                regulations that restrict or prohibit individuals with 
                low incomes and their families from receiving services 
                under such programs; and
                    (B) to eliminate discrepancies in wages and 
                benefits based on gender.

SEC. 202. GENERAL ACCOUNTING OFFICE STUDY AND REPORT.

    (a) Study.--
            (1) In general.--The Comptroller General of the United 
        States shall conduct a study to review the effectiveness of the 
        Federal job training programs under the jurisdictions of the 
        Secretary of Education, the Secretary of Health and Human 
        Services, and the Secretary of Labor, including the extent to 
        which such programs are successful at placing both male and 
        female participants into unsubsidized employment at wages which 
        are not less than 130 percent of 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.
            (2) Conduct of study.--In carrying out the study under 
        paragraph (1), the Comptroller General of the United States 
        shall--
                    (A) identify the various categories of individuals 
                that such programs are intended to serve and determine 
                the extent to which such categories of individuals are 
                actually being served under such programs; and
                    (B) identify any outcome measures currently used by 
                the Department of Education, the Department of Health 
                and Human Services, and the Department of Labor in the 
                Federal job training programs under the jurisdictions 
                of such Departments.
    (b) Report.--Not later than 1 year after the date of the enactment 
of this Act, the Comptroller General of the United States shall submit 
to the Congress a report containing the results of the study carried 
out under subsection (a).

    Subtitle B--Economic Self-Sufficiency Standards for Federal Job 
                           Training Programs

SEC. 211. ESTABLISHMENT OF STANDARDS.

    (a) In General.--Not later than 1 year after the date of the 
enactment of this Act, the Secretary of Education, the Secretary of 
Health and Human Services, and the Secretary of Labor shall, in 
accordance with either the formula under section 212 or the formula 
under section 213, jointly develop and publish in the Federal Register 
proposed standards that measure the minimum amount of wages and 
employment benefits that a participant enrolled in a Federal job 
training program under the jurisdiction of each such Secretary, 
respectively, should receive after termination from such program to 
ensure the long-term economic self-sufficiency of such participant.
    (b) Public Review and Comment.--Each Secretary specified in 
subsection (a) shall provide for public review and comment of the 
proposed standards developed by each such Secretary, respectively, not 
later than the 60-day period beginning on the date such standards are 
published in the Federal Register.
    (c) Final Standards.--Not later than 4 months after the end of the 
60-day period described in subsection (b), each Secretary specified in 
subsection (a) shall develop and publish in the Federal Register final 
standards.

SEC. 212. POVERTY LINE AND REGIONAL HOUSING BASED FORMULA.

    A Secretary who elects to develop proposed standards in accordance 
with this section shall make significant progress toward ensuring that 
each participant enrolled in a Federal job training program receives 
services under such program so that upon termination from such program 
such participant receives, or is a member of a family which receives, a 
total income which is not less than the sum of--
            (1) 130 percent of 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; and
            (2) the amount (if any) by which the regional housing costs 
        for a family residing in the State (as determined by the 
        Secretary of Housing and Urban Development) exceed the national 
        average housing costs for a family (as so determined).

SEC. 213. FAMILY, HOUSING, AND RELATED FACTORS BASED FORMULA.

    A Secretary who elects to develop proposed standards in accordance 
with this section shall ensure that each participant enrolled in a 
Federal job training program receives services under such program so 
that upon termination from such program such participant receives, or 
is a member of a family which receives, an appropriate total income 
which takes into account the following factors:
            (1) The participant's family size and composition, 
        including the number and age of dependent adults and children.
            (2) 100 percent of the average housing costs, which shall 
        be based on the fair market rental in effect for the market 
        area in which the participant resides, as established by the 
        Secretary of Housing and Urban Development pursuant to section 
        8(c) of the United States Housing Act of 1937.
            (3) 100 percent of the average child care costs 
        (differentiated by the age of each child), which may be based 
        on the actual cost of such care established under section 
        402(g)(1)(C)(i)(I) the Social Security Act or the applicable 
        local market rate established under clause (ii) of such 
        section.
            (4) 100 percent of the average adult dependent care costs, 
        which may be based on local surveys or the local average of 
        such costs.
            (5) 100 percent of the average health care costs, which 
        shall include costs incurred for full family health care 
        coverage (including premiums, deductibles, and copayments), and 
        which may be based on local surveys or the local average of 
        such costs.
            (6) 100 percent of the average transportation costs, which 
        may be based on local surveys or the local average of such 
        costs.
            (7) 100 percent of the food costs, which shall be equal to 
        \1/3\ of the official poverty line (as defined by the Office of 
        Management and Budget, and revised annually in accordance with 
        section 673(2) of the Omnibus Budget Reconciliation Act of 1981 
        (42 U.S.C. 9902(2)).
            (8) 100 percent of the average work-related costs, which 
        shall include the cost of uniforms, tools, and other 
        appropriate work-related costs.

SEC. 214. ECONOMIC SELF-SUFFICIENCY DEFINED.

    For purposes of this subtitle, the term ``economic self-
sufficiency'' means the ability of an individual to meet the following 
basic needs for the individual and such individual's family:
            (1) Housing.
            (2) Child care.
            (3) Adult dependent care.
            (4) Food.
            (5) Transportation.
            (6) Health care.
            (7) Work-related expenses.

                       Subtitle C--Effective Date

SEC. 221. EFFECTIVE DATE.

    This title shall take effect on October 1, 1995.

                  TITLE III--CHILD SUPPORT ENFORCEMENT

SEC. 301. NATIONAL CHILD SUPPORT ORDER REGISTRY.

    (a) Establishment.--
            (1) In general.--The Secretary of the Treasury shall 
        establish in the Internal Revenue Service a national registry 
        of all child support orders.
            (2) Child support order defined.--As used in this section, 
        the term ``child support order'' means an order, issued or 
        modified by a State court or an administrative process 
        established under State law, that requires an individual to 
        make payments for support and maintenance of a child or of a 
        child and the parent with whom the child is living.
    (b) Transmission of Copies of Child Support Orders to the National 
Registry.--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 to ensure that--
                    ``(A) each child support order issued or modified 
                in the State contains the social security account 
                number of each parent with rights or obligations under 
                the order;
                    ``(B) within 5 days after the issuance or 
                modification of a child support order in the State, a 
                copy of the order is transmitted to the national child 
                support order registry established under section 301(a) 
                of the Working Off Welfare Act of 1994;
                    ``(C) within 2 years after the date of the 
                enactment of this paragraph, a copy of each child 
                support order being enforced by the State pursuant to 
                this part which has not been transmitted pursuant to 
                subparagraph (B) is transmitted to the national child 
                support order registry;
                    ``(D) within 5 years after the date of the 
                enactment of this paragraph, a copy of each child 
                support issued or modified in the State which has not 
                been transmitted pursuant to subparagraph (B) or (C) 
                and which a party to the order has requested be sent to 
                the national child support order registry be 
                transmitted to the registry; and
                    ``(E) with each order transmitted pursuant to 
                subparagraph (B), (C), or (D)--
                            ``(i) a notice is included as to the date 
                        the order is required or scheduled to be 
                        reviewed by a court or an administrative 
                        process established under State law; and
                            ``(ii) a certified statement of arrears (if 
                        any) owed under the order is included if a 
                        party to the order is receiving services under 
                        the State plan.''.
    (c) Maintenance of Abstracts of Child Support Orders.--The national 
registry shall maintain an abstract of each child support order, which 
shall contain the following information:
            (1) The names, addresses, and social security account 
        numbers of each individual with rights or obligations under the 
        order, to the extent that the authority that issued the order 
        has not prohibited the release of such information.
            (2) The name and date of birth of any child with respect to 
        whom payments are to be made under the order.
            (3) The dollar amount of child support required to be paid 
        on a monthly basis under the order.
            (4) The date the order was issued or most recently 
        modified, and each date the order is required or scheduled to 
        be reviewed by a court or an administrative process established 
        under State law.
            (5) Any orders superseded by the order.
            (6) Such other information as the Secretary of the 
        Treasury, in consultation with the Secretary of Health and 
        Human Services, shall, by regulation require.
    (d) Provision of Child Support Information to Employers.--Upon 
receipt from an employer of a W-4 form completed pursuant to section 
302(b) of this Act by an employee of the employer, the national 
registry shall report to the employer such information as the national 
registry may have as to--
            (1) whether the employee has a legal obligation to provide 
        child support (as defined in section 462(b) of the Social 
        Security Act) which is to be collected, in whole or in part, 
        through wage withholding pursuant to an order issued by a State 
        court or an order of an administrative process established 
        under State law; and
            (2) the aggregate amount of all such obligations.

SEC. 302. MODIFICATION OF W-4 REPORTING REQUIREMENTS TO PROVIDE FOR 
              REPORTING OF CHILD SUPPORT OBLIGATIONS OF EMPLOYEES.

    (a) Establishment of Reporting System.--The Secretary of the 
Treasury, in consultation with the Secretary of Labor, shall establish 
a system for the reporting of information relating to child support 
obligations of employees that meets the requirements of this section.
    (b) Employee Obligations.--Under the system, each employee shall be 
required to file with the employer of the employee, within 5 days after 
the later of the effective date of this section or the date the 
employee is hired, a W-4 form that indicates--
            (1) whether the employee has a legal obligation to provide 
        child support (as defined in section 462(b) of the Social 
        Security Act) which is to be collected, in whole or in part, 
        through wage withholding pursuant to an order issued by a State 
        court or an order of an administrative process established 
        under State law; and
            (2) if so--
                    (A) the aggregate amount of all such obligations; 
                and
                    (B) the name and address of any person to whom the 
                employee has such an obligation.
    (c) Employer Obligations.--
            (1) In general.--Subtitle C of the Internal Revenue Code of 
        1986 (relating to employment taxes) is amended by inserting 
        after chapter 24 the following new chapter:

  ``CHAPTER 24A--COLLECTION OF CHILD SUPPORT OBLIGATIONS AT SOURCE ON 
                                 WAGES

                              ``Sec. 3411. Child support obligations 
                                        collected at source.

``SEC. 3411. CHILD SUPPORT OBLIGATIONS COLLECTED AT SOURCE.

    ``(a) Requirement of Withholding.--
            ``(1) Wage withholding as indicated by the employee.--Each 
        employer who receives a completed W-4 form from an employee 
        pursuant to section 302(b) of the Working Off Welfare Act of 
        1994 which indicates that the employee has a legal obligation 
        to provide child support (as defined in section 462(b) of the 
        Social Security Act) shall--
                    ``(A) deduct and withhold from the wages of the 
                employee the amount indicated on the W-4 form as a 
                child support obligation;
                    ``(B) send such amount to Secretary; and
                    ``(C) forward the form to the national child 
                support order registry.
            ``(2) Correction of withholding instructions.--If the 
        national child support order registry notifies the employer 
        that an employee has an obligation referred to in paragraph 
        (1), the employer shall--
                    ``(A) deduct and withhold from the wages of the 
                employee the greater of--
                            ``(i) the amount indicated on the W-4 form 
                        as a child support obligation; or
                            ``(ii) the amount that such registry 
                        indicates is to be deducted and withheld from 
                        the wages of the employee to satisfy such 
                        obligation; and
                    ``(B) send the amount so withheld to the Secretary.
    ``(b) Certain Obligations Exempt.--This section shall not apply to 
a child support obligation if the order requiring payment of such 
obligation specifies that such obligation is exempt from the 
requirements of this section.
    ``(c) Liability for Payment.--The employer shall be liable for the 
payment of amounts deducted and withheld under subsection (a) to the 
Secretary.
    ``(d) National Child Support Order Registry.--For purposes of this 
section, the term `national child support order registry' means the 
national registry of all child support orders established under section 
301 of the Working Off Welfare Act of 1994.
    ``(e) Special Rules.--For purposes of this chapter (and so much of 
subtitle F as relates to this chapter), any amount required to be 
deducted and withheld under this section shall be treated as if it were 
a tax withheld under chapter 24 and rules similar to the rules of 
chapter 24 shall apply.''
            (2) Clerical amendment.--The table of chapters for subtitle 
        C of such Code is amended by inserting after the item relating 
        to chapter 24 the following new item:

                              ``Chapter 24A. Child support obligations 
                                        collected at source.''

SEC. 303. COLLECTION OF CHILD SUPPORT.

    (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. COLLECTION OF CHILD SUPPORT.

    ``(a) Monthly Payments by Individuals With No or Insufficient Wage 
Withholding for Child Support.--
            ``(1) In general.--Each individual who has a child support 
        payment shortfall for any month shall pay an amount equal to 
        such shortfall to the Secretary not later than the close of 
        such month or such earlier date specified by the Secretary.
            ``(2) Child support payment shortfall.--For purposes of 
        this subsection, the term `child support payment shortfall' 
        means, with respect to any month, an amount equal to the excess 
        (if any) of--
                    ``(A) the amount of the applicable child support 
                obligation for such month, over
                    ``(B) the amount (if any) deducted and withheld 
                under section 3411 from the wages paid to such 
                individual during such month.
            ``(3) Certain obligations exempt.--This subsection shall 
        not apply to a child support obligation if the order requiring 
        payment of such obligation specifies that such obligation is 
        exempt from the requirements of this subsection.
    ``(b) Payments of Arrearages by Individuals No Longer Exempt From 
Withholding or Monthly Payments.--
            ``(1) In general.--If--
                    ``(A) for any month ending with or within the 
                taxable year, a child support obligation was exempt 
                from section 3111 and subsection (a) of this section,
                    ``(B) such obligation ceases to be so exempt during 
                such year, and
                    ``(C) such individual failed to pay the full amount 
                of such obligation for any month ending with or within 
                such year for which such obligation was so exempt,
        then such individual shall pay (not later than the date 
        specified by the Secretary) an amount equal to the excess of 
        the full amount of such obligation for the months referred to 
        in subparagraph (A) over the amount paid before such date under 
        such obligation for such months.
            ``(2) Determination of amount required to be paid.--
        Subsection (d) shall apply to an amount required to be paid 
        under this subsection only after the Secretary's determination 
        of such amount (after a hearing on the record) becomes final.
    ``(c) Reconciliation of Child Support Obligation and Payments on 
Income Tax Return.--
            ``(1) In general.--Each applicable child support obligation 
        of any individual for months ending with or within any taxable 
        year shall be paid--
                    ``(A) 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
                    ``(B)(i) if such return is filed not later than 
                such date, with such return, or
                    ``(ii) in any case not described in clause (i), in 
                such manner as the Secretary may by regulations 
                prescribe.
            ``(2) Offset for withheld child support, etc.--There shall 
        be allowed as a credit against the amount required to be paid 
        under paragraph (1) by an individual the sum of--
                    ``(A) the amount (if any) deducted and withheld 
                under section 3411 from the wages received by such 
                individual during the taxable year,
                    ``(B) the amount (if any) paid by such individual 
                under section 6654 by reason of subsection (f)(3) 
                thereof for such taxable year,
                    ``(C) the amount (if any) paid by such individual 
                under subsections (a) and (b) for such taxable year, 
                and
                    ``(D) in the case of an obligation which was exempt 
                from the requirements of section 3411 and subsection 
                (a) of this section for only a portion of the taxable 
                year, the amount paid (for such portion of the taxable 
                year) 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).
            ``(3) 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--
                    ``(A) the aggregate of the amounts described in 
                subparagraphs (A), (B), (C), and (D) of paragraph (2) 
                for such taxable year, over
                    ``(B) the aggregate of the applicable child support 
                obligations of the taxpayer for such taxable year.
        The credit allowed by this paragraph 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), (b), or (c) 
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) Application of Section to Child Support Orders Not Initially 
Subject to Section.--
            ``(1) In general.--In the case of a child support 
        obligation which becomes an applicable child support obligation 
        for any month after January 1996, the amount required to be 
        paid under subsection (a) for the first such month shall be 
        increased by the excess (if any) of--
                    ``(A) the aggregate amount required to be paid 
                under such obligation for all months before such month 
                (including months in prior taxable years), over
                    ``(B) the aggregate amount paid under such 
                obligation for all months before such month.
            ``(2) Cross reference.--

                                ``For agreements to pay tax in 
installments, see section 6159.
    ``(f) 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), except that such term shall not include any 
such obligation for any period during which section 466(a)(12) of the 
Social Security Act (42 U.S.C. 666(a)(12)) does not apply to the child 
support order with respect thereto until the order is registered.''
    (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 deducted and withheld as a child 
        support obligation under section 3411.''
    (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 section 
                3411, and
                    ``(B) amounts paid under subsections (a) and (b) of 
                section 7524,
        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. Collection of child 
                                        support.''

SEC. 304. DISTRIBUTION OF PORTION OF CHILD SUPPORT COLLECTED.

    (a) In General.--The Secretary of the Treasury shall pay to the 
appropriate payee the sum of the following amounts which are received 
by the Secretary on account of a child support obligation payable to 
such payee:
            (1) The amounts deducted and withheld under section 3411 of 
        the Internal Revenue Code of 1986.
            (2) The amounts paid under section 6654 of such Code 
        (relating to estimated tax payments) by reason of subsection 
        (f)(3) thereof.
            (3) The amounts paid under section 7524 of such Code 
        (relating to collection of child support).
    (b) Appropriate Payee.--As used in this section, the term 
``appropriate payee'' means, with respect to a child support 
obligation--
            (1) the person to whom the obligation is owed; or
            (2) if such person has assigned to a State the right to 
        collect the obligation, the State.
    (c) Interest Payable on Late Payments by Secretary.--If, within 10 
days after the Secretary of the Treasury receives an amount referred to 
in a paragraph of subsection (a), the Secretary fails to pay any 
corresponding amount required to be paid under subsection (a), the 
Secretary shall pay, in addition to the amount required to be paid, to 
the appropriate payee interest at the underpayment rate (determined 
under section 6621 of such Code, and compounded daily) on such amount 
for the period beginning on such date and ending on the date paid.
    (d) Coordination With Rules Governing Distribution of Child Support 
Collected by a State.--Section 457 of the Social Security Act (42 
U.S.C. 657) is amended by adding at the end the following:
    ``(e) For purposes of this section, amounts received by a State 
from the Secretary of the Treasury pursuant to section 304(a) of the 
Working Off Welfare Act of 1994 shall be considered amounts collected 
by the State as child support pursuant to a plan approved under this 
part.''.

SEC. 305. OUTREACH AND ACCESSIBILITY.

    (a) Uniform Application for Child Support Services.--
            (1) Requirement that states use federal application form.--
        Section 454(6)(A) of the Social Security Act (42 U.S.C. 
        654(6)(A)) is amended by inserting ``(which shall be made on 
        the service application form developed under section 
        452(a)(7))'' after ``State''.
            (2) Duty to develop application form.--Section 452(a)(7) of 
        such Act (42 U.S.C. 652(a)(7)) is amended by inserting ``, and 
        develop a form to be used to apply for services established 
        under State plans under this part'' before the semicolon.
    (b) Outreach.--
            (1) State plan requirement.--Section 454 of such Act (42 
        U.S.C. 654) is amended--
                    (A) in paragraph (23), by striking ``and'' after 
                the semicolon;
                    (B) in paragraph (24), by striking the period and 
                inserting ``; and''; and
                    (C) by inserting after paragraph (24) the 
                following:
            ``(25) provide for the establishment and conduct of an 
        ongoing program of outreach to persons eligible for services 
        under the plan, in accordance with regulations issued under 
        section 452(a)(11).''.
            (2) Regulations.--Section 452(a) of such Act (42 U.S.C. 
        652(a)) is amended--
                    (A) in paragraph (9), by striking ``and'' after the 
                semicolon;
                    (B) in paragraph (10), by striking the 2nd period 
                and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(11) issue such regulations as are necessary to ensure 
        that State agencies--
                    ``(A) develop and implement a plan for serving 
                underserved populations;
                    ``(B) use appropriate personnel and printed 
                material for use by persons who do not speak English or 
                whose hearing is impaired; and
                    ``(C) work in cooperation with other Federal, 
                State, and local government agencies and private 
                nonprofit organizations which serve low-income families 
                to publicize the availability of such services and 
                coordinate the delivery of such services.''.

SEC. 306. COMMISSION ON CHILD SUPPORT GUIDELINES.

    (a) Establishment of Commission.--There is hereby established a 
Commission to be known as the Commission on Child Support Guidelines 
(in this section referred to as the ``Commission'') to be composed of 
15 members appointed in accordance with subsection (b)(1).
    (b) Membership.--
            (1) Appointment.--
                    (A) Appointing authorities.--Subject to 
                subparagraph (B), the members of the Commission shall 
                be appointed as follows:
                            (i) 4 members shall be appointed jointly by 
                        the majority and minority leaders of the 
                        Senate, in consultation with the chairman and 
                        ranking minority member of the Committee on 
                        Finance of the Senate.
                            (ii) 4 members shall be appointed jointly 
                        by the Speaker and the minority leader of the 
                        House of Representatives, in consultation with 
                        the chairman and ranking minority member of the 
                        Committee on Ways and Means of the House of 
                        Representatives.
                            (iii) 7 members shall be appointed by the 
                        Secretary of Health and Human Services.
                    (B) Balanced representation.--The persons with 
                authority to make appointments under subparagraph (A) 
                shall, individually and collectively, ensure that the 
                composition of the membership of the Commission 
                reflects a balanced representation of ethnic groups, 
                groups of various economic status, economists, persons 
                familiar with the cost of raising children, custodial 
                and noncustodial parents, judges and hearing officers 
                familiar with the use of guidelines, and persons who 
                have experience with the welfare system.
            (2) Term of office.--Members of the Commission shall serve 
        for the life of the Commission.
            (3) Vacancies.--A vacancy on the Commission shall be filled 
        in the manner in which the original appointment was made and 
        shall not affect the powers or duties of the Commission.
            (4) Transaction of business.--A majority of the members of 
        the Commission shall constitute a quorum for the transaction of 
        business. Decisions of the Commission shall be according to the 
        vote of a simple majority of those present and voting at a 
        properly called meeting.
            (5) First meeting.--As promptly as possible after all of 
        the members of the Commission are appointed, the Secretary of 
        Health and Human Services shall call the first meeting of the 
        Commission.
            (6) Chairperson.--At the first Commission meeting, the 
        members of the Commission shall select a Chairperson from among 
        such members and shall meet thereafter at the call of the 
        Chairperson or of a majority of the members.
    (c) Compensation of Commission Members.--
            (1) No pay.--Members of the Commission shall serve as such 
        without pay.
            (2) Travel expenses and per diem.--Members of the 
        Commission shall be allowed travel expenses, including a per 
        diem allowance in lieu of subsistence, in the same manner as 
        persons serving intermittently in the government service are 
        allowed travel expenses under section 5703 of title 5, United 
        States Code.
    (d) Report to the Congress on Recommended National Child Support 
Guidelines.--The Commission shall submit to the Congress a report that 
contains recommendations for national child support guidelines that 
should be followed by State courts and administrative bodies in setting 
the amount of child support awards. In developing such guidelines, the 
Commission shall consider the best interests of the child.
    (e) Powers of the Commission.--
            (1) Mails.--The Commission may use the United States mails 
        in the same manner and upon the same conditions as other 
        departments and agencies of the United States Government.
            (2) Gifts.--The Commission may accept, use, and dispose of 
        donations of money and property, and may accept such volunteer 
        services of individuals as it deems appropriate.
            (3) Contract authority.--The Commission may procure 
        supplies, services, and property, may make contracts, and may 
        procure temporary and intermittent services under section 
        3109(b) of title 5, United States Code, but only to the extent 
        and in such amounts as are provided in appropriation Acts.
            (4) Rules of procedure.--For purposes of carrying out its 
        duties under subsection (d), the Commission may adopt such 
        rules for its organization and procedures as it deems 
        appropriate.
            (5) Director and staff.--
                    (A) Director.--The Commission shall have a Director 
                who shall be appointed by the Chairperson.
                    (B) Staff.--The Director may appoint and fix the 
                pay of such additional personnel as the Director 
                considers appropriate.
                    (C) Applicability of certain civil service laws.--
                The Director and staff of the Commission may be 
                appointed without regard to the provisions of title 5, 
                United States Code, governing appointments in the 
                competitive service, and may be paid without regard to 
                the provisions of chapter 51 and subchapter III of 
                chapter 53 of such title relating to classification and 
                General Schedule pay rates, except that an individual 
                so appointed may not be paid at a rate in excess of the 
                rate for level IV of the Executive Schedule.
            (6) Staff of federal agencies.--On request of the 
        Chairperson of the Commission, the head of any Federal 
        department or agency may detail, on a reimbursable basis, any 
        of the personnel of such department or agency to the Commission 
        to assist the Commission in carrying out its duties under this 
        section without regard to section 3341 of title 5, United 
        States Code.
    (f) Effective Date.--This section shall take effect on the date of 
the enactment of this Act.
    (g) Termination of the Commission.--
            (1) Termination date.--The Commission shall terminate on 
        the earlier of--
                    (A) the date that the Commission submits to the 
                Congress the report required by subsection (d); or
                    (B) the date that is 2 years after the date of the 
                enactment of this section.
            (2) Disposition of commission property.--
                    (A) Funds.--Any funds held by the Commission on the 
                date of termination of the Commission shall be 
                deposited in the general fund of the Treasury of the 
                United States and credited as miscellaneous receipts.
                    (B) Other property.--Any property (other than 
                funds) held by the Commission on such date shall be 
                disposed of as excess or surplus property.

SEC. 307. RESOURCES.

    (a) Deadline for Issuance of Standards for Staffing State Child 
Support Programs.--Within 1 year after the date of the enactment of 
this Act, the Secretary of Health and Human Services shall establish 
the staffing requirements required to be established under section 
452(a)(2) of the Social Security Act, including the requirement that a 
State shall, to the extent practicable, fill positions created in order 
to carry out the amendments made by this title with personnel of the 
organizational unit referred to in section 454(3) of such Act whose 
positions are eliminated in order to carry out such amendments.
    (b) Incentive for States to Improve Child Support Programs.--
            (1) Increase in federal matching rate.--Section 455(a) of 
        the Social Security Act (42 U.S.C. 655(a)) is amended--
                    (A) in paragraph (1)(A), by inserting ``(or, if 
                applicable, paragraph (3))'' after ``paragraph (2)''; 
                and
                    (B) by adding at the end the following:
    ``(3)(A) Notwithstanding paragraph (2) of this subsection, the 
percent applicable to a State for a quarter in a fiscal year for 
purposes of paragraph (1)(A) of this subsection is 90 percent if the 
most recent review conducted under section 452(a)(4), after the date of 
the enactment of this Act, of the State program operated under this 
part confirms that--
            ``(i) the paternity establishment percentage of the State 
        for the fiscal year immediately preceding the fiscal year in 
        which the quarter occurs equals or exceeds the threshold 
        percentage;
            ``(ii) the State has met the standards included, pursuant 
        to subsections (h) and (i) of section 452, in the standards 
        required by section 452(a)(1), with respect to at least the 
        threshold percentage of the cases in which services are 
        provided under the State plan under this part during the 
        quarter; and
            ``(iii) during the quarter, the State has complied with a 
        plan approved by the Secretary for the State to meet the 
        staffing requirements established under section 452(a)(2).
    ``(B) For purposes of subparagraph (A) of this paragraph, the 
threshold percentage for a State with respect to a quarter is the 
greater of--
            ``(i) 80 percent; or
            ``(ii) the lesser of--
                    ``(I) the threshold percentage for the State with 
                respect to the most recent quarter for which the 
                percent applicable to a State for purposes of paragraph 
                (1)(A) is 90 percent by reason of subparagraph (A) of 
                this paragraph, increased by 2 percentage points; or
                    ``(II) 95 percent.''.
            (2) Effective date.--The amendments made by paragraph (1) 
        shall apply to payments under part D of title IV of the Social 
        Security Act for quarters beginning after the 1-year period 
        that begins with the date of the enactment of this Act.
    (c) Direct Accountability of Child Support Programs.--Section 
403(h) of such Act (42 U.S.C. 603(h))--
            (1) is amended--
                    (A) in paragraph (1)--
                            (i) by striking ``part D'' and inserting 
                        ``this part''; and
                            (ii) by striking ``such part'' and 
                        inserting ``this part''; and
                    (B) in paragraph (3), by striking ``this part'' and 
                inserting ``part A''; and
            (2) as so amended, is hereby transferred to section 455 of 
        such Act, inserted after subsection (b) of such section 455 and 
        designated as subsection (c) of such section 455.
    (d) Maintenance of Effort.--
            (1) State child support programs.--Section 455 of such Act 
        (42 U.S.C. 655) is amended by adding at the end the following:
    ``(f) Notwithstanding any other provision of this section, the 
amount otherwise payable to a State for a quarter under this section 
shall be reduced to the extent that the amount expended by the State to 
carry out the State plan under this part during the most recently 
completed fiscal year is less than the amount so expended during the 
fiscal year that immediately precedes such most recently completed 
fiscal year.''.
            (2) State afdc programs.--Section 403 of such Act (42 
        U.S.C. 603) is amended by inserting after subsection (b) the 
        following:
    ``(c) Notwithstanding any other provision of this section, the 
amount otherwise payable to a State for a quarter under this section 
shall be reduced to the extent that the amount expended by the State to 
carry out the State plan under this part during the most recently 
completed fiscal year is less than the amount so expended during the 
fiscal year that immediately precedes such most recently completed 
fiscal year.''.
    (e) Streamlining of Child Support Audits.--The Secretary of Health 
and Human Services shall streamline the process for conducting audits 
under section 452(a)(4) of the Social Security Act in such a way as 
to--
            (1) reduce the burden on States with programs that are 
        complying substantially with the requirements of part D of 
        title IV of such Act;
            (2) enable the audit process to produce a timely analysis 
        of State programs that are not complying substantially with 
        such requirements; and
            (3) enable the Secretary to shift staff resources to 
        technical assistance in order to help States improve their 
        programs under such part.

SEC. 308. PATERNITY ESTABLISHMENT PROCEDURES.

    (a) In General.--Section 466(a)(5)(C) of the Social Security Act 
(42 U.S.C. 666(a)(5)(C)) is amended--
            (1) by redesignating the 1st sentence as clause (i)(I);
            (2) by inserting after such clause the following:
            ``(II) Such procedures must provide that any such 
        explanation to a mother include the following information:
                    ``(aa) Signing a paternity acknowledgment affidavit 
                is voluntary.
                    ``(bb) Once paternity of a child is established, 
                the father of the child has the right to seek custody 
                of the child or visitation rights with respect to the 
                child.
                    ``(cc) Once paternity of a child is established, 
                the mother of the child has the right to seek from the 
                father of the child financial and medical support for 
                the child.
                    ``(dd) The effect that the courts of the State will 
                give to a signed paternity acknowledgment affidavit.
            ``(III) Such procedures must provide that any such 
        explanation to a possible father include the following 
        information:
                    ``(aa) Signing a paternity acknowledgment affidavit 
                is voluntary.
                    ``(bb) Genetic testing is available and will be 
                provided upon request.
                    ``(cc) The policy of the State with respect to 
                payment for the cost of genetic testing.
                    ``(dd) Once paternity of a child is established, 
                the father of the child has the right to seek custody 
                of the child or visitation rights with respect to the 
                child.
                    ``(ee) Once paternity of a child is established, 
                the mother of the child has the right to seek from the 
                father of the child financial and medical support for 
                the child.
                    ``(ff) The effect that the courts of the State will 
                give to a signed paternity acknowledgment affidavit.
            ``(IV) Such procedures must provide that the information 
        required to be provided under subclause (II) or (III) must be 
        provided--
                    ``(aa) orally and in writing;
                    ``(bb) where appropriate, in the language of the 
                individual to whom the information is required to be 
                provided; and
                    ``(cc) if the individual is blind or hearing-
                impaired, in a manner accessible to the individual.'';
            (3) by indenting the 2nd sentence 2 ems and redesignating 
        such sentence as clause (ii); and
            (4) by inserting after such clause (ii) the following:
            ``(iii) Such procedures must require the State agency 
        responsible for maintaining birth records to offer voluntary 
        paternity establishment services.
            ``(iv) Such procedures must require the State to use only 
        the affidavit developed under section 452(a)(7) for the 
        voluntary acknowledgment of paternity, and to give full faith 
        and credit to such an affidavit signed in any other State.
            ``(v) The Secretary shall prescribe regulations governing 
        voluntary paternity establishment services offered by entities 
        other than hospitals, which shall include a requirement that 
        any State agency that provides such services must use the same 
        materials used by, provide the personnel providing such 
        services with the same training provided by, and evaluate the 
        provision of such services in the same manner as hospital-based 
        voluntary paternity establishment programs.''.
    (b) National Paternity Acknowledgment Affidavit.--Section 452(a)(7) 
of such Act (42 U.S.C. 652(a)(7)), as amended by section 305(a)(2) of 
this Act, is amended by inserting ``, and develop an affidavit to be 
used for the voluntary acknowledgment of paternity'' before the 
semicolon.
    (c) Signed Paternity Acknowledgment Affidavit Conclusively Presumed 
to Establish Paternity.--Section 466(a)(5)(D) of such Act (42 U.S.C. 
666(a)(5)(D)) is amended--
            (1) by inserting ``(i)'' after ``(D)''; and
            (2) by adding at the end the following:
            ``(ii)(I) Such procedures shall provide that the written 
        voluntary acknowledgment of the paternity of a child shall, 
        upon the expiration of the challenge period, create a legal 
        finding of paternity--
                    ``(aa) without any further action; or
                    ``(bb) at the option of the State, after a court or 
                administrative agency with which the document 
                containing the acknowledgment has been filed within 5 
                business days after the expiration of the challenge 
                period issues an order establishing such paternity.
            ``(II) As used in subclause (I), the term `challenge 
        period' means, with respect to an acknowledgment of paternity--
                    ``(aa) the 30-day period that begins on the date of 
                the acknowledgment; or
                    ``(bb) if the person who executed the 
                acknowledgment undergoes genetic testing within 30 days 
                after the date of the acknowledgment, the 30-day period 
                that begins with the date the person is notified of the 
                results of the genetic testing.''.

SEC. 309. COORDINATION OF COLLECTION ACTIVITIES.

    Section 452 of the Social Security Act (42 U.S.C. 652) is amended 
by adding at the end the following:
    ``(j)(1) Not later than 1 year after the date of the enactment of 
this subsection, the Secretary and the Secretary of the Treasury shall 
jointly issue regulations governing the coordination of State 
activities in collecting child support pursuant to State plans approved 
under this part and the activities of the Secretary of the Treasury in 
collecting child support under section 7524 of the Internal Revenue 
Code of 1986.
    ``(2) The Secretary shall periodically report to the Congress on 
any legislation needed to facilitate the coordination of such child 
support collection activities.''.

SEC. 310. INCLUSION IN CONSUMER CREDIT REPORTS OF INFORMATION ON 
              OVERDUE CHILD SUPPORT OBLIGATIONS OF THE CONSUMER.

    (a) Provision to Consumer Reporting Agencies of Information on 
Overdue Child Support Obligations of Absent Parents.--Section 466(a)(7) 
of the Social Security Act (42 U.S.C. 666(a)(7)) is amended--
            (1) by striking ``will'' and inserting ``shall'';
            (2) by striking ``upon the request of such agency''; and
            (3) by inserting ``and'' before ``(B)''; and
            (4) by striking ``, and (C)'' and all that follows through 
        ``State''.
    (b) Overdue Support Determined Without Regard to Age of Child.--
Section 466(e) of such Act (42 U.S.C. 666(e)) is amended--
            (1) by striking ``minor'' the 1st place such term appears; 
        and
            (2) by striking all that follows the 1st sentence.

SEC. 311. EFFECTIVE DATE.

    Except as otherwise provided in this title, this title and the 
amendments made by this title shall take effect on January 1, 1996, and 
shall apply to--
            (1) child support orders issued or modified on or after 
        such date, and, beginning 3 years after such date, to all 
        orders whether issued before, on, or after such date; and
            (2) payments under part D of title IV of the Social 
        Security Act for quarters beginning on or after such date.

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