I

103D CONGRESS

2D SESSION H. R. 4051

To reform the child support system.

IN THE HOUSE OF REPRESENTATIVES

MARCH 16, 1994

Ms. WOOLSEY (for herself, Mr. CLYBURN, Mr. FRANK of Massachusetts, Mr.

SCOTT, and Ms. VELA ́ZQUEZ) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To reform the child support system.

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

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Secure Assurance for

5 Families Everywhere (SAFE) Act’’.

6 SEC. 2. NATIONAL CHILD SUPPORT ORDER REGISTRY.

7 (a) ESTABLISHMENT.—

8 (1) IN GENERAL.—The Secretary of the Treas9 ury shall establish in the Internal Revenue Service

10 a national registry of all child support orders.
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1 (2) CHILD SUPPORT ORDER DEFINED.—As

2 used in this section, the term ‘‘child support order’’

3 means an order, issued or modified by a State court

4 or an administrative process established under State

5 law, that requires an individual to make payments

6 for support and maintenance of a child or of a child

7 and the parent with whom the child is living.

8 (b) TRANSMISSION OF COPIES OF CHILD SUPPORT

9 ORDERS TO THE NATIONAL REGISTRY.—Section 466(a)

10 of the Social Security Act (42 U.S.C. 666(a)) is amended

11 by inserting after paragraph (11) the following:

12 ‘‘(12) Procedures to ensure that—

13 ‘‘(A) each child support order issued or

14 modified in the State contains the social secu15 rity account number of each parent with rights

16 or obligations under the order;

17 ‘‘(B) within 5 days after the issuance or

18 modification of a child support order in the

19 State, a copy of the order is transmitted to the

20 national child support order registry established

21 under section 2(a) of the Secure Assurance for

22 Families Everywhere (SAFE) Act;

23 ‘‘(C) within 2 years after the date of the

24 enactment of this paragraph, a copy of each

25 child support order being enforced by the State
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1 pursuant to this part which has not been trans2 mitted pursuant to subparagraph (B) is trans3 mitted to the national child support order

4 registry;

5 ‘‘(D) within 5 years after the date of the

6 enactment of this paragraph, a copy of each

7 child support issued or modified in the State

8 which has not been transmitted pursuant to

9 subparagraph (B) or (C) and which a party to

10 the order has requested be sent to the national

11 child support order registry be transmitted to

12 the registry; and

13 ‘‘(E) with each order transmitted pursuant

14 to subparagraph (B), (C), or (D)—

15 ‘‘(i) a notice is included as to the date

16 the order is required or scheduled to be re17 viewed by a court or an administrative

18 process established under State law; and

19 ‘‘(ii) a certified statement of arrears

20 (if any) owed under the order is included

21 if a party to the order is receiving services

22 under the State plan.’’.

23 (c) MAINTENANCE OF ABSTRACTS OF CHILD SUP24 PORT ORDERS.—The national registry shall maintain an
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1 abstract of each child support order, which shall contain

2 the following information:

3 (1) The names, addresses, and social security

4 account numbers of each individual with rights or

5 obligations under the order, to the extent that the

6 authority that issued the order has not prohibited

7 the release of such information.

8 (2) The name and date of birth of any child

9 with respect to whom payments are to be made

10 under the order.

11 (3) The dollar amount of child support required

12 to be paid on a monthly basis under the order.

13 (4) The date the order was issued or most re14 cently modified, and each date the order is required

15 or scheduled to be reviewed by a court or an admin16 istrative process established under State law.

17 (5) Any orders superseded by the order.

18 (6) Such other information as the Secretary of

19 the Treasury, in consultation with the Secretary of

20 Health and Human Services, shall, by regulation

21 require.

22 (d) PROVISION OF CHILD SUPPORT INFORMATION

23 TO EMPLOYERS.—Upon receipt from an employer of a W–

24 4 form completed pursuant to section 3(b) of this Act by

25 an employee of the employer, the national registry shall
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1 report to the employer such information as the national

2 registry may have as to—

3 (1) whether the employee has a legal obligation

4 to provide child support (as defined in section

5 462(b) of the Social Security Act) which is to be col6 lected, in whole or in part, through wage withholding

7 pursuant to an order issued by a State court or an

8 order of an administrative process established under

9 State law; and

10 (2) the aggregate amount of all such obliga11 tions.

12 SEC. 3. MODIFICATION OF W–4 REPORTING REQUIREMENTS

13 TO PROVIDE FOR REPORTING OF CHILD SUP14 PORT OBLIGATIONS OF EMPLOYEES.

15 (a) ESTABLISHMENT OF REPORTING SYSTEM.—The

16 Secretary of the Treasury, in consultation with the Sec17 retary of Labor, shall establish a system for the reporting

18 of information relating to child support obligations of em19 ployees that meets the requirements of this section.

20 (b) EMPLOYEE OBLIGATIONS.—Under the system,

21 each employee shall be required to file with the employer

22 of the employee, within 5 days after the later of the effec23 tive date of this section or the date the employee is hired,

24 a W–4 form that indicates—
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1 (1) whether the employee has a legal obligation

2 to provide child support (as defined in section

3 462(b) of the Social Security Act) which is to be col4 lected, in whole or in part, through wage withholding

5 pursuant to an order issued by a State court or an

6 order of an administrative process established under

7 State law; and

8 (2) if so—

9 (A) the aggregate amount of all such obli10 gations; and

11 (B) the name and address of any person to

12 whom the employee has such an obligation.

13 (c) EMPLOYER OBLIGATIONS.—

14 (1) IN GENERAL.—Subtitle C of the Internal

15 Revenue Code of 1986 (relating to employment

16 taxes) is amended by inserting after chapter 24 the

17 following new chapter:

18 ‘‘CHAPTER 24A—COLLECTION OF CHILD

19 SUPPORT OBLIGATIONS AT SOURCE

20 ON WAGES

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

21 ‘‘SEC. 3411. CHILD SUPPORT OBLIGATIONS COLLECTED AT

22 SOURCE.

23 ‘‘(a) REQUIREMENT OF WITHHOLDING.—
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1 ‘‘(1) WAGE WITHHOLDING AS INDICATED BY

2 THE EMPLOYEE.—Each employer who receives a

3 completed W–4 form from an employee pursuant to

4 section 3(b) of the Secure Assurance for Families

5 Everywhere (SAFE) Act which indicates that the

6 employee has a legal obligation to provide child sup7 port (as defined in section 462(b) of the Social Secu8 rity Act) shall—

9 ‘‘(A) deduct and withhold from the wages

10 of the employee the amount indicated on the

11 W–4 form as a child support obligation;

12 ‘‘(B) send such amount to Secretary; and

13 ‘‘(C) forward the form to the national child

14 support order registry.

15 ‘‘(2) CORRECTION OF WITHHOLDING INSTRUC16 TIONS.—If the national child support order registry

17 notifies the employer that an employee has an obli18 gation referred to in paragraph (1), the employer

19 shall—

20 ‘‘(A) deduct and withhold from the wages

21 of the employee the greater of—

22 ‘‘(i) the amount indicated on the

23 W–4 form as a child support obligation;

24 or
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1 ‘‘(ii) the amount that such registry in2 dicates is to be deducted and withheld

3 from the wages of the employee to satisfy

4 such obligation; and

5 ‘‘(B) send the amount so withheld to the

6 Secretary.

7 ‘‘(b) CERTAIN OBLIGATIONS EXEMPT.—This section

8 shall not apply to a child support obligation if the order

9 requiring payment of such obligation specifies that such

10 obligation is exempt from the requirements of this section.

11 ‘‘(c) LIABILITY FOR PAYMENT.—The employer shall

12 be liable for the payment of amounts deducted and with13 held under subsection (a) to the Secretary.

14 ‘‘(d) NATIONAL CHILD SUPPORT ORDER REG15 ISTRY.—For purposes of this section, the term ‘national

16 child support order registry’ means the national registry

17 of all child support orders established under section 2 of

18 the Secure Assurance for Families Everywhere (SAFE)

19 Act.

20 ‘‘(e) SPECIAL RULES.—For purposes of this chapter

21 (and so much of subtitle F as relates to this chapter), any

22 amount required to be deducted and withheld under this

23 section shall be treated as if it were a tax withheld under

24 chapter 24 and rules similar to the rules of chapter 24

25 shall apply.’’
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1 (2) CLERICAL AMENDMENT.—The table of

2 chapters for subtitle C of such Code is amended by

3 inserting after the item relating to chapter 24 the

4 following new item:

‘‘Chapter 24A. Child support obligations collected at source.’’

5 SEC. 4. COLLECTION OF CHILD SUPPORT.

6 (a) IN GENERAL.—Chapter 77 of the Internal Reve7 nue Code of 1986 (relating to miscellaneous provisions)

8 is amended by adding at the end thereof the following new

9 section:

10 ‘‘SEC. 7524. COLLECTION OF CHILD SUPPORT.

11 ‘‘(a) MONTHLY PAYMENTS BY INDIVIDUALS WITH

12 NO OR INSUFFICIENT WAGE WITHHOLDING FOR CHILD

13 SUPPORT.—

14 ‘‘(1) IN GENERAL.—Each individual who has a

15 child support payment shortfall for any month shall

16 pay an amount equal to such shortfall to the Sec17 retary not later than the close of such month or

18 such earlier date specified by the Secretary.

19 ‘‘(2) CHILD SUPPORT PAYMENT SHORTFALL.—

20 For purposes of this subsection, the term ‘child sup21 port payment shortfall’ means, with respect to any

22 month, an amount equal to the excess (if any) of—

23 ‘‘(A) the amount of the applicable child

24 support obligation for such month, over
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1 ‘‘(B) the amount (if any) deducted and

2 withheld under section 3411 from the wages

3 paid to such individual during such month.

4 ‘‘(3) CERTAIN OBLIGATIONS EXEMPT.—This

5 subsection shall not apply to a child support obliga6 tion if the order requiring payment of such obliga7 tion specifies that such obligation is exempt from the

8 requirements of this subsection.

9 ‘‘(b) PAYMENTS OF ARREARAGES BY INDIVIDUALS

10 NO LONGER EXEMPT FROM WITHHOLDING OR MONTHLY

11 PAYMENTS.—

12 ‘‘(1) IN GENERAL.—If—

13 ‘‘(A) for any month ending with or within

14 the taxable year, a child support obligation was

15 exempt from section 3111 and subsection (a) of

16 this section,

17 ‘‘(B) such obligation ceases to be so ex18 empt during such year, and

19 ‘‘(C) such individual failed to pay the full

20 amount of such obligation for any month end21 ing with or within such year for which such ob22 ligation was so exempt,

23 then such individual shall pay (not later than the

24 date specified by the Secretary) an amount equal to

25 the excess of the full amount of such obligation for
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1 the months referred to in subparagraph (A) over the

2 amount paid before such date under such obligation

3 for such months.

4 ‘‘(2) DETERMINATION OF AMOUNT REQUIRED

5 TO BE PAID.—Subsection (d) shall apply to an

6 amount required to be paid under this subsection

7 only after the Secretary’s determination of such

8 amount (after a hearing on the record) becomes

9 final.

10 ‘‘(c) RECONCILIATION OF CHILD SUPPORT OBLIGA11 TION AND PAYMENTS ON INCOME TAX RETURN.—

12 ‘‘(1) IN GENERAL.—Each applicable child sup13 port obligation of any individual for months ending

14 with or within any taxable year shall be paid—

15 ‘‘(A) not later than the last date (deter16 mined without regard to extensions) prescribed

17 for filing the individual’s return of tax imposed

18 by chapter 1 for such taxable year, and

19 ‘‘(B)(i) if such return is filed not later

20 than such date, with such return, or

21 ‘‘(ii) in any case not described in clause (i),

22 in such manner as the Secretary may by regula23 tions prescribe.

24 ‘‘(2) OFFSET FOR WITHHELD CHILD SUPPORT,

25 ETC.—There shall be allowed as a credit against the
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1 amount required to be paid under paragraph (1) by

2 an individual the sum of—

3 ‘‘(A) the amount (if any) deducted and

4 withheld under section 3411 from the wages re5 ceived by such individual during the taxable

6 year,

7 ‘‘(B) the amount (if any) paid by such in8 dividual under section 6654 by reason of sub9 section (f)(3) thereof for such taxable year,

10 ‘‘(C) the amount (if any) paid by such in11 dividual under subsections (a) and (b) for such

12 taxable year, and

13 ‘‘(D) in the case of an obligation which

14 was exempt from the requirements of section

15 3411 and subsection (a) of this section for only

16 a portion of the taxable year, the amount paid

17 (for such portion of the taxable year) by such

18 individual directly to the person to whom the

19 obligation is owed (or, if such person has as20 signed to a State the right to collect the obliga21 tion, the State).

22 ‘‘(3) CREDIT OR REFUND FOR PAYMENTS IN

23 EXCESS OF ACTUAL OBLIGATION.—There shall be al24 lowed as a credit against the tax imposed by subtitle
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1 A for the taxable year an amount equal to the excess

2 (if any) of—

3 ‘‘(A) the aggregate of the amounts de4 scribed in subparagraphs (A), (B), (C), and (D)

5 of paragraph (2) for such taxable year, over

6 ‘‘(B) the aggregate of the applicable child

7 support obligations of the taxpayer for such

8 taxable year.

9 The credit allowed by this paragraph shall be treated

10 for purposes of this title as allowed by subpart C of

11 part IV of subchapter A of chapter 1.

12 ‘‘(d) FAILURE TO PAY AMOUNT OWING.—If an indi13 vidual fails to pay the full amount required to be paid

14 under subsection (a), (b), or (c) on or before due date for

15 such payment, the Secretary shall assess and collect the

16 unpaid amount in the same manner, with the same pow17 ers, and subject to the same limitations applicable to a

18 tax imposed by subtitle C the collection of which would

19 be jeopardized by delay.

20 ‘‘(e) APPLICATION OF SECTION TO CHILD SUPPORT

21 ORDERS NOT INITIALLY SUBJECT TO SECTION.—

22 ‘‘(1) IN GENERAL.—In the case of a child sup23 port obligation which becomes an applicable child

24 support obligation for any month after January

25 1996, the amount required to be paid under sub-
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1 section (a) for the first such month shall be in2 creased by the excess (if any) of—

3 ‘‘(A) the aggregate amount required to be

4 paid under such obligation for all months before

5 such month (including months in prior taxable

6 years), over

7 ‘‘(B) the aggregate amount paid under

8 such obligation for all months before such

9 month.

10 ‘‘(2) CROSS REFERENCE.—

‘‘For agreements to pay tax in installments, see

section 6159.

11 ‘‘(f) APPLICABLE CHILD SUPPORT OBLIGATION.—

12 For purposes of this section, the term ‘applicable child

13 support obligation’ means a legal obligation to provide

14 child support (as defined in section 462(b) of the Social

15 Security Act), except that such term shall not include any

16 such obligation for any period during which section

17 466(a)(12) of the Social Security Act (42 U.S.C.

18 666(a)(12)) does not apply to the child support order with

19 respect thereto until the order is registered.’’

20 (b) WITHHELD CHILD SUPPORT TO BE SHOWN ON

21 W–2.—Subsection (a) of section 6051 of such Code is

22 amended by striking ‘‘and’’ at the end of paragraph (8),

23 by striking the period at the end of paragraph (9) and
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1 inserting ‘‘, and’’, and by inserting after paragraph (9)

2 the following new paragraph:

3 ‘‘(10) the total amount deducted and withheld

4 as a child support obligation under section 3411.’’

5 (c) APPLICATION OF ESTIMATED TAX PENALTY.—

6 (1) Subsection (f) of section 6654 of such Code

7 (relating to failure by individual to pay estimated in8 come tax) is amended by striking ‘‘minus’’ at the

9 end of paragraph (2) and inserting ‘‘plus’’, by redes10 ignating paragraph (3) as paragraph (4), and by in11 serting after paragraph (2) the following new para12 graph:

13 ‘‘(3) the aggregate applicable child support obli14 gation (as defined in section 7524(a)) of the tax15 payer for months ending with or within the taxable

16 year, minus’’.

17 (2) Paragraph (1) of section 6654(d) of such

18 Code is amended by adding at the end the following

19 new subparagraph:

20 ‘‘(D) DETERMINATION OF REQUIRED AN21 NUAL PAYMENT FOR TAXPAYERS REQUIRED TO

22 PAY CHILD SUPPORT.—In the case of a tax23 payer who is required under section 7524 to

24 pay an applicable child support obligation (as

25 defined in section 7524) for any month ending
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1 with or within the taxable year, the required

2 annual payment shall be the sum of—

3 ‘‘(i) the amount determined under

4 subparagraph (B) without regard to sub5 section (f)(3), plus

6 ‘‘(ii) the aggregate amount of such

7 obligation for all months ending with or

8 within the taxable year.’’

9 (3) CREDIT FOR WITHHELD AMOUNTS, ETC.—

10 Subsection (g) of section 6654 of such Code is

11 amended by adding at the end the following new

12 paragraph:

13 ‘‘(3) CHILD SUPPORT.—For purposes of apply14 ing this section, the sum of—

15 ‘‘(A) amounts deducted and withheld

16 under section 3411, and

17 ‘‘(B) amounts paid under subsections (a)

18 and (b) of section 7524,

19 shall be deemed to be a payment of the amount de20 scribed in subsection (f)(3) on the date such

21 amounts were actually withheld or paid, as the case

22 may be.’’

23 (d) CLERICAL AMENDMENT.—The table of sections

24 for chapter 77 of such Code is amended by adding at the

25 end thereof the following new item:

‘‘Sec. 7524. Collection of child support.’’
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1 SEC. 5. DISTRIBUTION OF PORTION OF CHILD SUPPORT

2 COLLECTED.

3 (a) IN GENERAL.—The Secretary of the Treasury

4 shall pay to the appropriate payee the sum of the following

5 amounts which are received by the Secretary on account

6 of a child support obligation payable to such payee:

7 (1) The amounts deducted and withheld under

8 section 3411 of the Internal Revenue Code of 1986.

9 (2) The amounts paid under section 6654 of

10 such Code (relating to estimated tax payments) by

11 reason of subsection (f)(3) thereof.

12 (3) The amounts paid under section 7524 of

13 such Code (relating to collection of child support).

14 (b) COORDINATION WITH CHILD SUPPORT ASSUR15 ANCE BENEFIT.—The amount required to be paid under

16 subsection (a) which is attributable to a child support obli17 gation payable for any month shall not exceed the excess

18 (if any) of—

19 (1) the amount of such obligation for such

20 month, over

21 (2) the child support assurance benefit paid for

22 such month under section 6(a) on account of such

23 obligation.

24 (c) APPROPRIATE PAYEE.—As used in this section,

25 the term ‘‘appropriate payee’’ means, with respect to a

26 child support obligation—
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1 (1) the person to whom the obligation is owed;

2 or

3 (2) if such person has assigned to a State the

4 right to collect the obligation, the State.

5 (d) INTEREST PAYABLE ON LATE PAYMENTS BY

6 SECRETARY.—If, within 10 days after the Secretary of the

7 Treasury receives an amount referred to in a paragraph

8 of subsection (a), the Secretary fails to pay any cor9 responding amount required to be paid under subsection

10 (a), the Secretary shall pay, in addition to the amount re11 quired to be paid, to the appropriate payee interest at the

12 underpayment rate (determined under section 6621 of

13 such Code, and compounded daily) on such amount for

14 the period beginning on such date and ending on the date

15 paid.

16 (e) COORDINATION WITH RULES GOVERNING DIS17 TRIBUTION OF CHILD SUPPORT COLLECTED BY A

18 STATE.—Section 457 of the Social Security Act (42

19 U.S.C. 657) is amended by adding at the end the follow20 ing:

21 ‘‘(e) For purposes of this section, amounts received

22 by a State from the Secretary of the Treasury pursuant

23 to section 5(a) of the Secure Assurance for Families Ev24 erywhere (SAFE) Act shall be considered amounts col-
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1 lected by the State as child support pursuant to a plan

2 approved under this part.’’.

3 SEC. 6. CHILD SUPPORT ASSURANCE.

4 (a) MONTHLY CHILD SUPPORT ASSURANCE BENE5 FITS.—

6 (1) IN GENERAL.—The Secretary of the Treas7 ury shall pay to each eligible individual a monthly

8 child support assurance benefit under this sub9 section.

10 (2) AMOUNT OF BENEFIT.—

11 (A) GENERAL RULE.—The amount of the

12 child support assurance benefit payable under

13 this subsection to an eligible individual for a

14 calendar month is—

15 (i) the basic benefit payable to the in16 dividual; multiplied by

17 (ii) the inflation percentage in effect

18 for the calendar year in which the month

19 occurs.

20 (B) BASIC BENEFIT.—For purposes of

21 subparagraph (A), the amount of the basic ben22 efit payable to an eligible individual is—

23 (i) $250 if the eligible individual is

24 such with respect to only 1 eligible child;

25 or
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1 (ii) $300 if the eligible individual is

2 such with respect to more than 1 eligible

3 child.

4 (C) INFLATION PERCENTAGE.—For pur5 poses of subparagraph (A), the inflation per6 centage in effect for a calendar year is the per7 centage (if any) by which—

8 (i) the average of the Consumer Price

9 Index (as defined in section 1(f)(5) of the

10 Internal Revenue Code of 1986) for the

11 12-month period comprising the imme12 diately preceding calendar year; exceeds

13 (ii) the average of the Consumer Price

14 Index (as so defined) for the 12-month pe15 riod comprising the 2nd preceding calendar

16 year.

17 (3) TIMING OF PAYMENTS.—The Secretary of

18 the Treasury shall make payments under this sub19 section on the 1st day of each calendar month.

20 (b) DEFINITIONS.—As used in this subsection (a):

21 (1) ELIGIBLE INDIVIDUAL.—The term ‘‘eligible

22 individual’’ means—

23 (A) an individual to whom child support is

24 payable with respect to an eligible child pursu25 ant to an order, issued or modified by a State
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1 court or an administrative process established

2 under State law, which has been registered in

3 the national child support order registry estab4 lished under section 2(a) of this Act; and

5 (B) an individual who—

6 (i) more than 18 months before appli7 cation for benefits under this section, ap8 plied for services under a State plan ap9 proved under part D of title IV of the

10 Social Security Act; and

11 (ii)(I) has cooperated fully in—

12 (aa) establishing the paternity of

13 any child of the individual with re14 spect to whom such services have been

15 sought; and

16 (bb) seeking to establish a child

17 support order with respect to an eligi18 ble child with respect to whom such

19 services have been sought; or

20 (II) has refused to cooperate in the

21 matters described in subclause (I), for

22 good cause, in accordance with standards

23 prescribed by the Secretary in regulations,

24 which standards shall take into consider25 ation the best interests of the eligible child.
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1 (2) ELIGIBLE CHILD.—The term ‘‘eligible

2 child’’ means a child who has not attained 18 years

3 of age.

4 (c) NOTICE TO STATE AFDC AGENCIES.—The Sec5 retary shall notify each State agency referred to in section

6 402(a)(3) of the Social Security Act of each individual in

7 the State to whom the Secretary makes a payment under

8 this section and the amount of the payment.

9 (d) EFFECT ON AFDC BENEFITS.—Section

10 402(a)(8)(A)(vi) of the Social Security Act (42 U.S.C.

11 602(a)(8)(A)(vi)) is amended to read as follows:

12 ‘‘(vi) shall, with respect to any family ap13 plying for or receiving aid to families with de14 pendent children, disregard the first $100 of

15 the amounts paid during any month to any rel16 ative specified in clause (ii) of this subpara17 graph under section 6(a) of the Secure Assur18 ance for Families Everywhere (SAFE) Act, and

1 19 ⁄2 of the remainder thereof;’’.

20 SEC. 7. OUTREACH AND ACCESSIBILITY.

21 (a) UNIFORM APPLICATION FOR CHILD SUPPORT

22 SERVICES.—

23 (1) REQUIREMENT THAT STATES USE FEDERAL

24 APPLICATION FORM.—Section 454(6)(A) of the So25 cial Security Act (42 U.S.C. 654(6)(A)) is amended
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1 by inserting ‘‘(which shall be made on the service

2 application form developed under section

3 452(a)(7))’’ after ‘‘State’’.

4 (2) DUTY TO DEVELOP APPLICATION FORM.—

5 Section 452(a)(7) of such Act (42 U.S.C. 652(a)(7))

6 is amended by inserting ‘‘, and develop a form to be

7 used to apply for services established under State

8 plans under this part’’ before the semicolon.

9 (b) OUTREACH.—

10 (1) STATE PLAN REQUIREMENT.—Section 454

11 of such Act (42 U.S.C. 654) is amended—

12 (A) in paragraph (23), by striking ‘‘and’’

13 after the semicolon;

14 (B) in paragraph (24), by striking the pe15 riod and inserting ‘‘; and’’; and

16 (C) by inserting after paragraph (24) the

17 following:

18 ‘‘(25) provide for the establishment and conduct

19 of an ongoing program of outreach to persons eligi20 ble for services under the plan, in accordance with

21 regulations issued under section 452(a)(11).’’.

22 (2) REGULATIONS.—Section 452(a) of such Act

23 (42 U.S.C. 652(a)) is amended—

24 (A) in paragraph (9), by striking ‘‘and’’

25 after the semicolon;
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1 (B) in paragraph (10), by striking the 2nd

2 period and inserting ‘‘; and’’; and

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

4 ‘‘(11) issue such regulations as are necessary to

5 ensure that State agencies—

6 ‘‘(A) develop and implement a plan for

7 serving underserved populations;

8 ‘‘(B) use appropriate personnel and print9 ed material for use by persons who do not

10 speak English or whose hearing is impaired;

11 and

12 ‘‘(C) work in cooperation with other Fed13 eral, State, and local government agencies and

14 private nonprofit organizations which serve low15 income families to publicize the availability of

16 such services and coordinate the delivery of

17 such services.’’.

18 SEC. 8. COMMISSION ON CHILD SUPPORT GUIDELINES.

19 (a) ESTABLISHMENT OF COMMISSION.—There is

20 hereby established a Commission to be known as the Com21 mission on Child Support Guidelines (in this section re22 ferred to as the ‘‘Commission’’) to be composed of 15

23 members appointed in accordance with subsection (b)(1).

24 (b) MEMBERSHIP.—

25 (1) APPOINTMENT.—
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1 (A) APPOINTING AUTHORITIES.—Subject

2 to subparagraph (B), the members of the Com3 mission shall be appointed as follows:

4 (i) 4 members shall be appointed

5 jointly by the majority and minority lead6 ers of the Senate, in consultation with the

7 chairman and ranking minority member of

8 the Committee on Finance of the Senate.

9 (ii) 4 members shall be appointed

10 jointly by the Speaker and the minority

11 leader of the House of Representatives, in

12 consultation with the chairman and rank13 ing minority member of the Committee on

14 Ways and Means of the House of Rep15 resentatives.

16 (iii) 7 members shall be appointed by

17 the Secretary of Health and Human Serv18 ices.

19 (B) BALANCED REPRESENTATION.—The

20 persons with authority to make appointments

21 under subparagraph (A) shall, individually and

22 collectively, ensure that the composition of the

23 membership of the Commission reflects a bal24 anced representation of ethnic groups, groups

25 of various economic status, economists, persons
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1 familiar with the cost of raising children, custo2 dial and noncustodial parents, judges and hear3 ing officers familiar with the use of guidelines,

4 and persons who have experience with the wel5 fare system.

6 (2) TERM OF OFFICE.—Members of the Com7 mission shall serve for the life of the Commission.

8 (3) VACANCIES.—A vacancy on the Commission

9 shall be filled in the manner in which the original

10 appointment was made and shall not affect the pow11 ers or duties of the Commission.

12 (4) TRANSACTION OF BUSINESS.—A majority of

13 the members of the Commission shall constitute a

14 quorum for the transaction of business. Decisions of

15 the Commission shall be according to the vote of a

16 simple majority of those present and voting at a

17 properly called meeting.

18 (5) FIRST MEETING.—As promptly as possible

19 after all of the members of the Commission are ap20 pointed, the Secretary of Health and Human Serv21 ices shall call the first meeting of the Commission.

22 (6) CHAIRPERSON.—At the first Commission

23 meeting, the members of the Commission shall select

24 a Chairperson from among such members and shall
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1 meet thereafter at the call of the Chairperson or of

2 a majority of the members.

3 (c) COMPENSATION OF COMMISSION MEMBERS.—

4 (1) NO PAY.—Members of the Commission shall

5 serve as such without pay.

6 (2) TRAVEL EXPENSES AND PER DIEM.—Mem7 bers of the Commission shall be allowed travel ex8 penses, including a per diem allowance in lieu of

9 subsistence, in the same manner as persons serving

10 intermittently in the government service are allowed

11 travel expenses under section 5703 of title 5, United

12 States Code.

13 (d) REPORT TO THE CONGRESS ON RECOMMENDED

14 NATIONAL CHILD SUPPORT GUIDELINES.—The Commis15 sion shall submit to the Congress a report that contains

16 recommendations for national child support guidelines

17 that should be followed by State courts and administrative

18 bodies in setting the amount of child support awards. In

19 developing such guidelines, the Commission shall consider

20 the best interests of the child.

21 (e) POWERS OF THE COMMISSION.—

22 (1) MAILS.—The Commission may use the

23 United States mails in the same manner and upon

24 the same conditions as other departments and agen25 cies of the United States Government.
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1 (2) GIFTS.—The Commission may accept, use,

2 and dispose of donations of money and property, and

3 may accept such volunteer services of individuals as

4 it deems appropriate.

5 (3) CONTRACT AUTHORITY.—The Commission

6 may procure supplies, services, and property, may

7 make contracts, and may procure temporary and

8 intermittent services under section 3109(b) of title

9 5, United States Code, but only to the extent and

10 in such amounts as are provided in appropriation

11 Acts.

12 (4) RULES OF PROCEDURE.—For purposes of

13 carrying out its duties under subsection (d), the

14 Commission may adopt such rules for its organiza15 tion and procedures as it deems appropriate.

16 (5) DIRECTOR AND STAFF.—

17 (A) DIRECTOR.—The Commission shall

18 have a Director who shall be appointed by the

19 Chairperson.

20 (B) STAFF.—The Director may appoint

21 and fix the pay of such additional personnel as

22 the Director considers appropriate.

23 (C) APPLICABILITY OF CERTAIN CIVIL

24 SERVICE LAWS.—The Director and staff of the

25 Commission may be appointed without regard
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1 to the provisions of title 5, United States Code,

2 governing appointments in the competitive serv3 ice, and may be paid without regard to the pro4 visions of chapter 51 and subchapter III of

5 chapter 53 of such title relating to classification

6 and General Schedule pay rates, except that an

7 individual so appointed may not be paid at a

8 rate in excess of the rate for level IV of the Ex9 ecutive Schedule.

10 (6) STAFF OF FEDERAL AGENCIES.—On re11 quest of the Chairperson of the Commission, the

12 head of any Federal department or agency may de13 tail, on a reimbursable basis, any of the personnel

14 of such department or agency to the Commission to

15 assist the Commission in carrying out its duties

16 under this section without regard to section 3341 of

17 title 5, United States Code.

18 (f) EFFECTIVE DATE.—This section shall take effect

19 on the date of the enactment of this Act.

20 (g) TERMINATION OF THE COMMISSION.—

21 (1) TERMINATION DATE.—The Commission

22 shall terminate on the earlier of—

23 (A) the date that the Commission submits

24 to the Congress the report required by sub25 section (d); or
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1 (B) the date that is 2 years after the date

2 of the enactment of this section.

3 (2) DISPOSITION OF COMMISSION PROPERTY.—

4 (A) FUNDS.—Any funds held by the Com5 mission on the date of termination of the Com6 mission shall be deposited in the general fund

7 of the Treasury of the United States and cred8 ited as miscellaneous receipts.

9 (B) OTHER PROPERTY.—Any property

10 (other than funds) held by the Commission on

11 such date shall be disposed of as excess or sur12 plus property.

13 SEC. 9. RESOURCES.

14 (a) DEADLINE FOR ISSUANCE OF STANDARDS FOR

15 STAFFING STATE CHILD SUPPORT PROGRAMS.—Within 1

16 year after the date of the enactment of this Act, the Sec17 retary of Health and Human Services shall establish the

18 staffing requirements required to be established under sec19 tion 452(a)(2) of the Social Security Act, including the

20 requirement that a State shall, to the extent practicable,

21 fill positions created in order to carry out the amendments

22 made by this title with personnel of the organizational unit

23 referred to in section 454(3) of such Act whose positions

24 are eliminated in order to carry out such amendments.
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1 (b) INCENTIVE FOR STATES TO IMPROVE CHILD

2 SUPPORT PROGRAMS.—

3 (1) INCREASE IN FEDERAL MATCHING RATE.—

4 Section 455(a) of the Social Security Act (42 U.S.C.

5 655(a)) is amended—

6 (A) in paragraph (1)(A), by inserting ‘‘(or,

7 if applicable, paragraph (3))’’ after ‘‘paragraph

8 (2)’’; and

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

10 ‘‘(3)(A) Notwithstanding paragraph (2) of this sub11 section, the percent applicable to a State for a quarter

12 in a fiscal year for purposes of paragraph (1)(A) of this

13 subsection is 90 percent if the most recent review con14 ducted under section 452(a)(4), after the date of the en15 actment of this Act, of the State program operated under

16 this part confirms that—

17 ‘‘(i) the paternity establishment percentage of

18 the State for the fiscal year immediately preceding

19 the fiscal year in which the quarter occurs equals or

20 exceeds the threshold percentage;

21 ‘‘(ii) the State has met the standards included,

22 pursuant to subsections (h) and (i) of section 452,

23 in the standards required by section 452(a)(1), with

24 respect to at least the threshold percentage of the
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1 cases in which services are provided under the State

2 plan under this part during the quarter; and

3 ‘‘(iii) during the quarter, the State has com4 plied with a plan approved by the Secretary for the

5 State to meet the staffing requirements established

6 under section 452(a)(2).

7 ‘‘(B) For purposes of subparagraph (A) of this para8 graph, the threshold percentage for a State with respect

9 to a quarter is the greater of—

10 ‘‘(i) 80 percent; or

11 ‘‘(ii) the lesser of—

12 ‘‘(I) the threshold percentage for the State

13 with respect to the most recent quarter for

14 which the percent applicable to a State for pur15 poses of paragraph (1)(A) is 90 percent by rea16 son of subparagraph (A) of this paragraph, in17 creased by 2 percentage points; or

18 ‘‘(II) 95 percent.’’.

19 (2) EFFECTIVE DATE.—The amendments made

20 by paragraph (1) shall apply to payments under part

21 D of title IV of the Social Security Act for quarters

22 beginning after the 1-year period that begins with

23 the date of the enactment of this Act.
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1 (c) DIRECT ACCOUNTABILITY OF CHILD SUPPORT

2 PROGRAMS.—Section 403(h) of such Act (42 U.S.C.

3 603(h))—

4 (1) is amended—

5 (A) in paragraph (1)—

6 (i) by striking ‘‘part D’’ and inserting

7 ‘‘this part’’; and

8 (ii) by striking ‘‘such part’’ and in9 serting ‘‘this part’’; and

10 (B) in paragraph (3), by striking ‘‘this

11 part’’ and inserting ‘‘part A’’; and

12 (2) as so amended, is hereby transferred to sec13 tion 455 of such Act, inserted after subsection (b)

14 of such section 455 and designated as subsection (c)

15 of such section 455.

16 (d) MAINTENANCE OF EFFORT.—

17 (1) STATE CHILD SUPPORT PROGRAMS.—Sec18 tion 455 of such Act (42 U.S.C. 655) is amended by

19 adding at the end the following:

20 ‘‘(f) Notwithstanding any other provision of this sec21 tion, the amount otherwise payable to a State for a quar22 ter under this section shall be reduced to the extent that

23 the amount expended by the State to carry out the State

24 plan under this part during the most recently completed

25 fiscal year is less than the amount so expended during
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1 the fiscal year that immediately precedes such most re2 cently completed fiscal year.’’.

3 (2) STATE AFDC PROGRAMS.—Section 403 of

4 such Act (42 U.S.C. 603) is amended by inserting

5 after subsection (b) the following:

6 ‘‘(c) Notwithstanding any other provision of this sec7 tion, the amount otherwise payable to a State for a quar8 ter under this section shall be reduced to the extent that

9 the amount expended by the State to carry out the State

10 plan under this part during the most recently completed

11 fiscal year is less than the amount so expended during

12 the fiscal year that immediately precedes such most re13 cently completed fiscal year.’’.

14 (e) STREAMLINING OF CHILD SUPPORT AUDITS.—

15 The Secretary of Health and Human Services shall

16 streamline the process for conducting audits under section

17 452(a)(4) of the Social Security Act in such a way as to—

18 (1) reduce the burden on States with programs

19 that are complying substantially with the require20 ments of part D of title IV of such Act;

21 (2) enable the audit process to produce a timely

22 analysis of State programs that are not complying

23 substantially with such requirements; and
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1 (3) enable the Secretary to shift staff resources

2 to technical assistance in order to help States im3 prove their programs under such part.

4 SEC. 10. PATERNITY ESTABLISHMENT PROCEDURES.

5 (a) IN GENERAL.—Section 466(a)(5)(C) of the Social

6 Security Act (42 U.S.C. 666(a)(5)(C)) is amended—

7 (1) by redesignating the 1st sentence as clause

8 (i)(I);

9 (2) by inserting after such clause the following:

10 ‘‘(II) Such procedures must provide that any

11 such explanation to a mother include the following

12 information:

13 ‘‘(aa) Signing a paternity acknowledgment

14 affidavit is voluntary.

15 ‘‘(bb) Once paternity of a child is estab16 lished, the father of the child has the right to

17 seek custody of the child or visitation rights

18 with respect to the child.

19 ‘‘(cc) Once paternity of a child is estab20 lished, the mother of the child has the right to

21 seek from the father of the child financial and

22 medical support for the child.

23 ‘‘(dd) The effect that the courts of the

24 State will give to a signed paternity acknowl25 edgment affidavit.
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1 ‘‘(III) Such procedures must provide that any

2 such explanation to a possible father include the fol3 lowing information:

4 ‘‘(aa) Signing a paternity acknowledgment

5 affidavit is voluntary.

6 ‘‘(bb) Genetic testing is available and will

7 be provided upon request.

8 ‘‘(cc) The policy of the State with respect

9 to payment for the cost of genetic testing.

10 ‘‘(dd) Once paternity of a child is estab11 lished, the father of the child has the right to

12 seek custody of the child or visitation rights

13 with respect to the child.

14 ‘‘(ee) Once paternity of a child is estab15 lished, the mother of the child has the right to

16 seek from the father of the child financial and

17 medical support for the child.

18 ‘‘(ff) The effect that the courts of the

19 State will give to a signed paternity acknowl20 edgment affidavit.

21 ‘‘(IV) Such procedures must provide that the

22 information required to be provided under subclause

23 (II) or (III) must be provided—

24 ‘‘(aa) orally and in writing;
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1 ‘‘(bb) where appropriate, in the language

2 of the individual to whom the information is re3 quired to be provided; and

4 ‘‘(cc) if the individual is blind or hearing5 impaired, in a manner accessible to the individ6 ual.’’;

7 (3) by indenting the 2nd sentence 2 ems and

8 redesignating such sentence as clause (ii); and

9 (4) by inserting after such clause (ii) the follow10 ing:

11 ‘‘(iii) Such procedures must require the State

12 agency responsible for maintaining birth records to

13 offer voluntary paternity establishment services.

14 ‘‘(iv) Such procedures must require the State to

15 use only the affidavit developed under section

16 452(a)(7) for the voluntary acknowledgment of pa17 ternity, and to give full faith and credit to such an

18 affidavit signed in any other State.

19 ‘‘(v) The Secretary shall prescribe regulations

20 governing voluntary paternity establishment services

21 offered by entities other than hospitals, which shall

22 include a requirement that any State agency that

23 provides such services must use the same materials

24 used by, provide the personnel providing such serv25 ices with the same training provided by, and evalu-
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1 ate the provision of such services in the same man2 ner as hospital-based voluntary paternity establish3 ment programs.’’.

4 (b) NATIONAL PATERNITY ACKNOWLEDGMENT AFFI5 DAVIT.—Section 452(a)(7) of such Act (42 U.S.C.

6 652(a)(7)), as amended by section 7(a)(2) of this Act, is

7 amended by inserting ‘‘, and develop an affidavit to be

8 used for the voluntary acknowledgment of paternity’’ be9 fore the semicolon.

10 (c) SIGNED PATERNITY ACKNOWLEDGMENT AFFIDA11 VIT CONCLUSIVELY PRESUMED TO ESTABLISH PATER12 NITY.—Section 466(a)(5)(D) of such Act (42 U.S.C.

13 666(a)(5)(D)) is amended—

14 (1) by inserting ‘‘(i)’’ after ‘‘(D)’’; and

15 (2) by adding at the end the following:

16 ‘‘(ii)(I) Such procedures shall provide that the

17 written voluntary acknowledgment of the paternity

18 of a child shall, upon the expiration of the challenge

19 period, create a legal finding of paternity—

20 ‘‘(aa) without any further action; or

21 ‘‘(bb) at the option of the State, after a

22 court or administrative agency with which the

23 document containing the acknowledgment has

24 been filed within 5 business days after the expi-
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1 ration of the challenge period issues an order

2 establishing such paternity.

3 ‘‘(II) As used in subclause (I), the term ‘chal4 lenge period’ means, with respect to an acknowledg5 ment of paternity—

6 ‘‘(aa) the 30-day period that begins on the

7 date of the acknowledgment; or

8 ‘‘(bb) if the person who executed the ac9 knowledgment undergoes genetic testing within

10 30 days after the date of the acknowledgment,

11 the 30-day period that begins with the date the

12 person is notified of the results of the genetic

13 testing.’’.

14 SEC. 11. COORDINATION OF COLLECTION ACTIVITIES.

15 Section 452 of the Social Security Act (42 U.S.C.

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

17 ‘‘(j)(1) Not later than 1 year after the date of the

18 enactment of this subsection, the Secretary and the Sec19 retary of the Treasury shall jointly issue regulations gov20 erning the coordination of State activities in collecting

21 child support pursuant to State plans approved under this

22 part and the activities of the Secretary of the Treasury

23 in collecting child support under section 7524 of the Inter24 nal Revenue Code of 1986.
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1 ‘‘(2) The Secretary shall periodically report to the

2 Congress on any legislation needed to facilitate the coordi3 nation of such child support collection activities.’’.

4 SEC. 12. EFFECTIVE DATE.

5 Except as otherwise provided in this Act, this Act and

6 the amendments made by this Act shall take effect on Jan7 uary 1, 1996, and shall apply to—

8 (1) child support orders issued or modified on

9 or after such date, and, beginning 3 years after such

10 date, to all orders whether issued before, on, or after

11 such date; and

12 (2) payments under part D of title IV of the

13 Social Security Act for quarters beginning on or

14 after such date.

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