II

104TH CONGRESS

1ST SESSION S. 828

To enable each State to assist applicants and recipients of aid to families

with dependent children in providing for the economic well-being of

their children, to allow States to test new ways to improve the welfare

system, and for other purposes.

IN THE SENATE OF THE UNITED STATES

MAY 18 (legislative day, MAY 15), 1995

Mr. MOYNIHAN introduced the following bill; which was read twice and

referred to the Committee on Finance

A BILL

To enable each State to assist applicants and recipients

of aid to families with dependent children in providing

for the economic well-being of their children, to allow

States to test new ways to improve the welfare system,

and for other purposes.

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Family Support Act of 1995’’.

6 (b) TABLE OF CONTENTS.—The table of contents for

7 this Act is as follows:
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Sec. 1. Short title; table of contents.

Sec. 2. References to Social Security Act.

TITLE I—STRENGTHENING THE JOBS PROGRAM

Sec. 101. Increase in required JOBS participation rates.

Sec. 102. Promoting work.

Sec. 103. Funding for the JOBS program and child care.

Sec. 104. Evaluation of the JOBS program.

TITLE II—AID TO FAMILIES WITH DEPENDENT CHILDREN

Subtitle A—Requirements for Teenage Parents

Sec. 201. Case management for parents under age 20.

Sec. 202. Participation in educational activity.

Sec. 203. Living arrangement requirements.

Subtitle B—State Flexibility

PART I—ESTABLISHMENT OF INTERAGENCY WELFARE REVIEW BOARD

Sec. 211. Interagency Welfare Review Board.

Sec. 212. Waiver application.

Sec. 213. Review and approval of applications.

Sec. 214. Definition of State.

PART II—ADDITIONAL PROVISIONS CONCERNING WAIVERS

Sec. 221. Schedule for consideration of waiver applications.

Sec. 222. State authority to establish certain AFDC rules.

Sec. 223. Waiver authority for the JOBS program.

TITLE III—CHILD SUPPORT ENFORCEMENT

Sec. 300. Short title.

Subtitle A—Improvements to the Child Support Collection System

PART I—ELIGIBILITY AND OTHER MATTERS CONCERNING TITLE IV–D

PROGRAM CLIENTS

Sec. 301. Cooperation requirement and good cause exception.

Sec. 302. State obligation to provide paternity establishment and child support

enforcement services.

Sec. 303. Distribution of payments.

Sec. 304. Rights to notification and hearings.

Sec. 305. Privacy safeguards.

PART II—PROGRAM ADMINISTRATION AND FUNDING

Sec. 311. Federal matching payments.

Sec. 312. Performance-based incentives and penalties.

Sec. 313. Federal and State reviews and audits.

Sec. 314. Required reporting procedures.

Sec. 315. Automated data processing requirements.

Sec. 316. Director of CSE program; staffing study.

Sec. 317. Funding for secretarial assistance to State programs.

Sec. 318. Data collection and reports by the Secretary.
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PART III—LOCATE AND CASE TRACKING

Sec. 321. Central State and case registry.

Sec. 322. Centralized collection and disbursement of support payments.

Sec. 323. Amendments concerning income withholding.

Sec. 324. Locator information from interstate networks.

Sec. 325. Expanded Federal parent locator service.

Sec. 326. Use of social security numbers.

PART IV—STREAMLINING AND UNIFORMITY OF PROCEDURES

Sec. 331. Adoption of uniform State laws.

Sec. 332. Improvements to full faith and credit for child support orders.

Sec. 333. State laws providing expedited procedures.

PART V—PATERNITY ESTABLISHMENT

Sec. 341. State laws concerning paternity establishment.

Sec. 342. Outreach for voluntary paternity establishment.

PART VI—ESTABLISHMENT AND MODIFICATION OF SUPPORT ORDERS

Sec. 351. National Child Support Guidelines Commission.

Sec. 352. Simplified process for review and adjustment of child support orders.

PART VII—ENFORCEMENT OF SUPPORT ORDERS

Sec. 361. Federal income tax refund offset.

Sec. 362. Internal Revenue Service collection of arrearages.

Sec. 363. Authority to collect support from Federal employees.

Sec. 364. Enforcement of child support obligations of members of the Armed

Forces.

Sec. 365. Voiding of fraudulent transfers.

Sec. 366. State law authorizing suspension of licenses.

Sec. 367. Reporting arrearages to credit bureaus.

Sec. 368. Extended statute of limitation for collection of arrearages.

Sec. 369. Charges for arrearages.

Sec. 370. Denial of passports for nonpayment of child support.

PART VIII—MEDICAL SUPPORT

Sec. 381. Technical correction to ERISA definition of medical child support

order.

PART IX—ACCESS AND VISITATION PROGRAMS

Sec. 391. Grants to States for access and visitation programs.

Subtitle B—Effect of Enactment

Sec. 395. Effective dates.

Sec. 396. Severability.

TITLE IV—SUPPLEMENTAL SECURITY INCOME

Sec. 401. Revised regulations applicable to the determination of disability in individuals under the age of 18.

Sec. 402. Directory of services.

Sec. 403. Use of standardized tests and their equivalent.
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Sec. 404. Graduated benefits for additional children.

Sec. 405. Treatment requirements for disabled individuals under the age of 18.

Sec. 406. Special accounts for individuals under the age of 18.

Sec. 407. Continuing disability reviews for individuals under the age of 18.

Sec. 408. Coordination of services for SSI children.

TITLE V—FINANCING; MISCELLANEOUS PROVISIONS

Sec. 501. Revision of tax rules on expatriation.

Sec. 502. Basis of assets of nonresident alien individuals becoming citizens or

residents.

Sec. 503. Earned income tax credit denied to individuals not authorized to be

employed in the United States.

Sec. 504. Earned income tax credit denied to individuals with substantial capital gain net income.

Sec. 505. Treatment of distributions in redemption of stock held by a corporation.

Sec. 506. Uniform alien eligibility criteria for public assistance programs.

Sec. 507. Deeming of sponsor’s income and resources to an alien under the

supplemental security income, aid to families with dependent

children, and food stamp programs.

1 SEC. 2. REFERENCES TO SOCIAL SECURITY ACT.

2 Except as otherwise specifically provided, whenever in

3 this Act an amendment is expressed in terms of an amend4 ment to or repeal of a section or other provision, the ref5 erence shall be considered to be made to that section or

6 other provision of the Social Security Act (42 U.S.C. 301

7 et seq.).

8 TITLE I—STRENGTHENING THE

9 JOBS PROGRAM

10 SEC. 101. INCREASE IN REQUIRED JOBS PARTICIPATION

11 RATES.

12 (a) IN GENERAL.—Section 403(l)(3) (42 U.S.C.

13 603(l)(3)) is amended—

14 (1) in subparagraph (A)—

15 (A) in clause (v), by striking ‘‘and’’;
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1 (B) in clause (vi), by striking the period

2 and inserting ‘‘or 1996;’’; and

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

4 clauses:

5 ‘‘(vii) 30 percent if such year is 1997;

6 ‘‘(viii) 35 percent if such year is 1998;

7 ‘‘(ix) 40 percent if such year is 1999;

8 ‘‘(x) 45 percent if such year is 2000; and

9 ‘‘(xi) 50 percent if such year is 2001 or

10 any year thereafter.’’; and

11 (2) in subparagraph (B)—

12 (A) in clause (ii)(IV), by striking ‘‘fiscal

13 years 1994 and 1995’’ and inserting ‘‘any fiscal

14 year beginning after fiscal year 1993’’; and

15 (B) in clause (iii), by striking subclauses

16 (I) and (II) and inserting the following:

17 ‘‘(I) the average monthly number of individuals

18 required or allowed by the State to participate in the

19 program under part F who have participated in such

20 program in months in the computation period (in21 cluding individuals who combine employment and

22 participation in such program for an average of 20

23 hours a week in that month in such period), plus the

24 number of individuals who are employed for an aver-
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1 age of 20 hours a week in that month in such pe2 riod, divided by

3 ‘‘(II) the average monthly number of individ4 uals required to participate under the program

5 under part F in such period (other than individuals

6 described in subparagraph (C)(iii)(I) or (D) of sec7 tion 402(a)(19) with respect to whom the State has

8 exercised its option to require their participation),

9 minus the average monthly number of individuals

10 who are being sanctioned in such period pursuant to

11 section 402(a)(19)(G).’’.

12 (b) CONFORMING AMENDMENTS.—The Family Sup13 port Act of 1988 (42 U.S.C. 1305 note) is amended by

14 striking section 204(b)(2).

15 SEC. 102. PROMOTING WORK.

16 (a) INCREASED EMPLOYMENT AND JOB RETEN17 TION.—Section 481(a) (42 U.S.C. 681(a)) is amended to

18 read as follows:

19 ‘‘SEC. 481. (a) PURPOSE.—It is the purpose of this

20 part to assist each State in providing such services as the

21 State determines to be necessary to—

22 ‘‘(1) enable individuals receiving assistance

23 under part A to enter employment as quickly as pos24 sible;

25 ‘‘(2) increase job retention; and
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1 ‘‘(3) ensure that needy families with children

2 obtain the education, training, and employment that

3 will help them avoid long-term welfare dependence.’’.

4 (b) STATE AGENCY RESPONSIBILITIES.—Section

5 482(a)(2) (42 U.S.C. 682(a)(2)) is amended—

6 (1) by striking ‘‘(2) The’’ and inserting ‘‘(2)(A)

7 The’’; and

8 (2) by adding at the end the following new sub9 paragraphs:

10 ‘‘(B) The State agency shall establish procedures

11 to—

12 ‘‘(i) encourage the placement of participants in

13 jobs as quickly as possible, including using perform14 ance measures that reward staff performance, or

15 such other management practice as the State may

16 choose; and

17 ‘‘(ii) assist participants in retaining employ18 ment after they are hired.

19 ‘‘(C) The Secretary shall provide technical assistance

20 and training to States to assist the States in implementing

21 effective management practices and strategies in order to

22 achieve the purpose of this part.’’.

23 (c) SERVICES AND ACTIVITIES UNDER THE JOBS

24 PROGRAM.—Section 482(d)(1)(A)(i) (42 U.S.C.

25 682(d)(1)(A)(i)) is amended—
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1 (1) in the matter preceding subclause (I), by

2 striking ‘‘shall’’ and inserting ‘‘may’’; and

3 (2) in subclause (I), by striking ‘‘(as appro4 priate)’’ and all that follows through the semicolon

5 and inserting a semicolon.

6 (d) JOB PLACEMENT VOUCHER PROGRAM.—

7 (1) ADDITION OF PROGRAM.—Section 482 (42

8 U.S.C. 682) is amended—

9 (A) in subsection (d)(1)(A)(ii)—

10 (i) in subclause (III), by striking

11 ‘‘and’’ at the end;

12 (ii) in subclause (IV), by striking the

13 period and inserting ‘‘; and’’; and

14 (iii) by adding at the end the follow15 ing new subclause:

16 ‘‘(V) a job placement voucher pro17 gram as described in subsection (h).’’;

18 (B) by redesignating subsections (h) and

19 (i) as subsections (i) and (j), respectively; and

20 (C) by inserting after subsection (g), the

21 following subsection:

22 ‘‘(h) JOB PLACEMENT VOUCHER PROGRAM.—(1)

23 The State agency may establish and operate a job place24 ment voucher program for individuals participating in the

25 program under this part.
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1 ‘‘(2) A State that elects to operate a job placement

2 voucher program under this subsection—

3 ‘‘(i) shall establish eligibility requirements for

4 participation in the job placement voucher program;

5 and

6 ‘‘(ii) may establish other requirements for such

7 voucher program as the State deems appropriate.

8 ‘‘(3) A job placement voucher program operated by

9 a State under this subsection shall include the following

10 requirements:

11 ‘‘(A) The State shall identify, maintain, and

12 make available to an individual applying for or re13 ceiving assistance under part A a list of State-ap14 proved job placement organizations that offer serv15 ices in the area where the individual resides and a

16 description of the job placement and support services

17 each such organization provides. Such organizations

18 may be publicly or privately owned and operated.

19 ‘‘(B)(i) An individual determined to be eligible

20 for assistance under part A shall, at the time the in21 dividual becomes eligible for such assistance—

22 ‘‘(I) receive the list and description de23 scribed in subparagraph (A);

24 ‘‘(II) agree, in exchange for job placement

25 and support services, to—
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1 ‘‘(aa) execute, within a period of

2 time permitted by the State, a con3 tract with a State-approved job place4 ment organization which provides that

5 the organization shall attempt to find

6 employment for the individual; and

7 ‘‘(bb) comply with the terms of

8 the contract; and

9 ‘‘(III) receive a job placement voucher (in

10 an amount to be determined by the State) for

11 payment to a State-approved job placement or12 ganization.

13 ‘‘(ii) The State shall impose the sanctions pro14 vided for in section 402(a)(19)(G) on any individual

15 who does not fulfill the terms of a contract executed

16 with a State-approved job placement organization.

17 ‘‘(C) At the time an individual executes a con18 tract with a State-approved job placement organiza19 tion, the individual shall provide the organization

20 with the job placement voucher that the individual

21 received pursuant to subparagraph (B).

22 ‘‘(D)(i) A State-approved job placement organi23 zation may redeem for payment from the State not

24 more than 25 percent of the value of a job place25 ment voucher upon the initial receipt of the voucher
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1 for payment of costs incurred in finding and placing

2 an individual in an employment position. The re3 maining value of such voucher shall not be redeemed

4 for payment from the State until the State-approved

5 job placement organization—

6 ‘‘(I) finds an employment position (as de7 termined by the State) for the individual who

8 provided the voucher; and

9 ‘‘(II) certifies to the State that the individ10 ual remains employed with the employer that

11 the organization originally placed the individual

12 with for the greater of—

13 ‘‘(aa) 6 continuous months; or

14 ‘‘(bb) a period determined by the

15 State.

16 ‘‘(ii) A State may modify, on a case-by-case

17 basis, the requirement of clause (i)(II) under such

18 terms and conditions as the State deems appro19 priate.

20 ‘‘(E)(i) The State shall establish performance21 based standards to evaluate the success of the State

22 job placement voucher program operated under this

23 subsection in achieving employment for individuals

24 participating in such voucher program. Such stand-
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1 ards shall take into account the economic conditions

2 of the State in determining the rate of success.

3 ‘‘(ii) The State shall, not less than once a fiscal

4 year, evaluate the job placement voucher program

5 operated under this subsection in accordance with

6 the performance-based standards established under

7 clause (i).

8 ‘‘(iii) The State shall submit a report contain9 ing the results of an evaluation conducted under

10 clause (ii) to the Secretary and a description of the

11 performance-based standards used to conduct the

12 evaluation in such form and under such conditions

13 as the Secretary shall require. The Secretary shall

14 review each report submitted under this clause and

15 may require the State to revise the performance16 based standards if the Secretary determines that the

17 State is not achieving an adequate rate of success

18 for such State.’’.

19 (2) CONFORMING AMENDMENTS.—Title IV (42

20 U.S.C. 681 et seq.) is amended—

21 (A) in section 403(l) (42 U.S.C. 603(l))—

22 (i) in paragraph (1)(A), by striking

23 ‘‘482(i)(2)’’ and inserting ‘‘482(j)(2)’’; and
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1 (ii) in paragraph (4)(A)(i), by insert2 ing ‘‘a job placement voucher program,’’

3 after ‘‘on-the-job training,’’; and

4 (B) in section 431(a)(6) (42 U.S.C.

5 629a(a)(6))—

6 (i) by striking ‘‘482(i)(5)’’ and insert7 ing ‘‘482(j)(5)’’; and

8 (ii) by striking ‘‘482(i)(7)(A)’’ and in9 serting ‘‘482(j)(7)(A)’’.

10 (3) EFFECTIVE DATE.—The amendments made

11 by paragraphs (1) and (2) shall be effective with re12 spect to calendar quarters beginning with the second

13 calendar quarter beginning after the date of the en14 actment of this Act.

15 (e) ELIMINATION OF REQUIREMENT TO PROVIDE

16 EDUCATIONAL ACTIVITIES TO INDIVIDUALS AGE 20 OR

17 OLDER; PERMITTING STATES TO PROVIDE EMPLOYMENT

18 SERVICES FOR NON-CUSTODIAL PARENTS.—Section

19 482(d) (42 U.S.C. 682(d)) is amended—

20 (1) by striking paragraph (2);

21 (2) by redesignating paragraph (3) as para22 graph (2); and

23 (3) in paragraph (2), as so redesignated—

24 (A) by striking ‘‘up to 5’’; and

25 (B) by striking the second sentence.
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1 (f) INCREASE IN PERIOD IN WHICH EARNED INCOME

2 DISREGARD MAY APPLY UNDER WORK

3 SUPPLEMENTATION PROGRAM.—Section 482(e) (42

4 U.S.C. 682(e)) is amended in paragraphs (2)(G) and (4),

5 by striking ‘‘9 months’’ and inserting ‘‘12 months’’.

6 (g) STATE FLEXIBILITY FOR THE JOB SEARCH PRO7 GRAM.—Section 482(g) (42 U.S.C. 682(g)) is amended—

8 (1) in paragraph (2)—

9 (A) by inserting ‘‘, and subject to para10 graph (3),’’ after ‘‘section 402(a)(19)(B)(i)’’;

11 and

12 (B) by striking ‘‘applies)—’’ and all that

13 follows through the period at the end and in14 serting ‘‘applies) at such time or times as the

15 State agency may determine.’’; and

16 (2) in paragraph (3), by inserting ‘‘, not includ17 ing any period of job search that occurred at the

18 same time that the individual was participating in

19 another activity under this part’’ after ‘‘12 months’’.

20 SEC. 103. FUNDING FOR THE JOBS PROGRAM AND CHILD

21 CARE.

22 (a) FUNDING FOR THE JOBS PROGRAM.—

23 (1) INCREASE IN FUNDING.—Section 403(k)(3)

24 (42 U.S.C. 603(k)(3)) is amended—
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1 (A) in subparagraph (E), by striking

2 ‘‘and’’; and

3 (B) by striking subparagraph (F) and in4 serting the following:

5 ‘‘(F) $1,200,000,000 in the case of the fiscal

6 year 1996,

7 ‘‘(G) $1,300,000,000 in the case of the fiscal

8 year 1997,

9 ‘‘(H) $1,600,000,000 in the case of the fiscal

10 year 1998,

11 ‘‘(I) $1,900,000,000 in the case of the fiscal

12 year 1999,

13 ‘‘(J) $2,200,000,000 in the case of the fiscal

14 year 2000, and

15 ‘‘(K) $2,500,000,000 in the case of the fiscal

16 year 2001, and each succeeding fiscal year,’’.

17 (2) APPLICABLE PERCENTAGES.—

18 (A) IN GENERAL.—Section 403(l)(1) (42

19 U.S.C. 603(l)(1)) is amended—

20 (i) by striking ‘‘(l)(1)(A) In lieu’’ and

21 inserting ‘‘(l)(1) In lieu’’; and

22 (ii) by striking ‘‘(including expendi23 tures’’ and all that follows through sub24 paragraph (B), and inserting ‘‘an amount

25 equal to the greater of—
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1 ‘‘(A) 70 percent; or

2 ‘‘(B) the Federal medical assistance percentage

3 (as defined in section 1118 in the case of any State

4 to which section 1108 applies, or as defined in sec5 tion 1905(b) in the case of any other State) plus ten

6 percentage points,

7 in the case of expenditures made by a State in operating

8 such a program for in a fiscal year.’’.

9 (B) CONFORMING AMENDMENTS.—Section

10 403(l) (42 U.S.C. 603(l)) is amended—

11 (i) in paragraph (2)(A), by striking

12 ‘‘paragraph (1)(A)’’ and inserting ‘‘para13 graph (1)’’; and

14 (ii) in paragraph (3)(C), by striking

15 ‘‘paragraph (1)(A)’’ and inserting ‘‘para16 graph (1)’’.

17 (b) FUNDING FOR CHILD CARE.—

18 (1) FUNDING FOR JOBS AND TRANSITIONAL

19 CHILD CARE.—

20 (A) IN GENERAL.—Section 402(g)(3)(A)

21 (42 U.S.C. 602(g)(3)(A)) is amended to read as

22 follows:

23 ‘‘(3)(A) In the case of amounts expended for child

24 care pursuant to clause (i) or (ii) of paragraph (1)(A),
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1 the applicable rate for purposes of section 403(a) shall be

2 the greater of—

3 ‘‘(i) 70 percent; or

4 ‘‘(ii) the Federal medical assistance percentage

5 (as defined in section 1118 in the case of any State

6 to which section 1108 applies, or as defined in sec7 tion 1905(b) in the case of any other State) plus ten

8 percentage points.’’.

9 (B) EXTENSION OF THE TRANSITIONAL

10 CHILD CARE PROGRAM.—Section 304(b) of the

11 Family Support Act of 1988 (42 U.S.C. 602

12 note) is amended—

13 (i) by striking ‘‘(1)’’; and

14 (ii) by striking paragraph (2).

15 (2) FUNDING FOR AT-RISK CHILD CARE.—Sec16 tion 403(n)(1)(A) (42 U.S.C. 603(n)(1)(A)) is

17 amended to read as follows:

18 ‘‘(A) 70 percent, or, if higher, the Federal med19 ical assistance percentage (as defined in section

20 1118 in the case of any State to which section 1108

21 applies, or as defined in section 1905(b) in the case

22 of any other State) plus ten percentage points, of

23 the expenditures by the State in providing child care

24 services pursuant to section 402(i), and in admin-
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1 istering the provision of such child care services, for

2 any fiscal year; and’’.

3 (c) EFFECTIVE DATES.—

4 (1) IN GENERAL.—Except as provided in para5 graph (2), the amendments made by this section

6 shall take effect on the date of the enactment of this

7 Act.

8 (2) APPLICABLE PERCENTAGES.—The amend9 ments made by subsections (a)(2) and (b) shall take

10 effect on October 1, 1996.

11 SEC. 104. EVALUATION OF THE JOBS PROGRAM.

12 (a) EVALUATION OBJECTIVES AND DEVELOP13 MENT.—

14 (1) OBJECTIVES.—The Secretary shall develop

15 and implement a plan for evaluating the programs

16 operated by the States under part F of title IV of

17 the Social Security Act (42 U.S.C. 681 et seq.).

18 Such plan shall be designed to develop information

19 to—

20 (A) assess the impacts of such programs

21 with respect to—

22 (i) cost effectiveness;

23 (ii) the level of earnings achieved;

24 (iii) welfare receipt;

25 (iv) job retention;
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1 (v) the effects on children; and

2 (vi) such other factors as the Sec3 retary may determine;

4 (B) provide guidance to the Secretary in

5 making any necessary changes and improve6 ments in the performance standards required by

7 section 487 of such Act (42 U.S.C. 687); and

8 (C) enable the Secretary to provide tech9 nical assistance to the States to assist them in

10 improving such programs and in meeting such

11 standards.

12 (2) DEVELOPMENT OF PLAN.—The plan de13 scribed in paragraph (1) shall be developed by the

14 Secretary in consultation with representatives of the

15 States.

16 (b) DEFINITIONS.—For purposes of this section:

17 (1) SECRETARY.—The term ‘‘Secretary’’ means

18 the Secretary of Health and Human Services.

19 (2) STATE.—The term ‘‘State’’ means any of

20 the 50 States, the District of Columbia, the Com21 monwealth of Puerto Rico, the Virgin Islands,

22 Guam, and American Samoa.

23 (c) AUTHORIZATION OF APPROPRIATIONS.—There

24 are authorized to be appropriated such sums as may be

25 necessary for fiscal years 1996 through 2000 for the pur-
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1 pose of carrying out the provisions of this section. Any

2 sums so appropriated shall remain available until ex3 pended.

4 TITLE II—AID TO FAMILIES

5 WITH DEPENDENT CHILDREN

6 Subtitle A—Requirements for

7 Teenage Parents

8 SEC. 201. CASE MANAGEMENT FOR PARENTS UNDER AGE

9 20.

10 (a) IN GENERAL.—Section 482(b) (42 U.S.C.

11 682(b)) is amended by adding at the end the following

12 new paragraph:

13 ‘‘(4) CASE MANAGER.—The State agency

14 shall—

15 ‘‘(A) assign a case manager to each custo16 dial parent receiving aid under part A who is

17 under age 20;

18 ‘‘(B) provide that case managers will have

19 the training necessary (taking into consider20 ation the recommendations of appropriate pro21 fessional organizations) to enable them to carry

22 out their responsibilities and will be assigned a

23 caseload the size of which permits effective case

24 management; and
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1 ‘‘(C) provide that the case manager will be

2 responsible for—

3 ‘‘(i) assisting such parent in obtaining

4 appropriate services, including at a mini5 mum, parenting education, family planning

6 services, education and vocational training,

7 and child care and transportation services,

8 ‘‘(ii) making the determinations re9 quired to implement the provision of sec10 tion 402(a)(43),

11 ‘‘(iii) monitoring such parent’s compli12 ance with all program requirements, and,

13 where appropriate, providing incentives

14 and applying sanctions, and

15 ‘‘(iv) providing general guidance, en16 couragement, and support to assist such

17 parent in his or her role as a parent and

18 in achieving self-sufficiency.’’.

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

20 this section shall be effective with respect to calendar

21 quarters beginning on or after October 1, 1996.

22 SEC. 202. PARTICIPATION IN EDUCATIONAL ACTIVITY.

23 (a) IN GENERAL.—Section 402(a)(19)(E) (42 U.S.C.

24 602(a)(19)(E)) is amended to read as follows:

25 ‘‘(E) that the State agency shall—
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1 ‘‘(i) in the case of a custodial parent

2 who has not attained 20 years of age, has

3 not successfully completed a high school

4 education (or its equivalent), and is re5 quired to participate in the program (in6 cluding an individual who would otherwise

7 be exempt from participation in the pro8 gram solely by reason of subparagraph

9 (C)(iii)), require such parent to—

10 ‘‘(I) attend school,

11 ‘‘(II) participate in a program

12 that combines classroom and job

13 training, or

14 ‘‘(III) work toward attainment of

15 a high school education (or its equiva16 lent);

17 ‘‘(ii) in the case of custodial parent

18 who has not attained 20 years of age, but

19 has successfully completed a high school

20 education (or its equivalent), and is re21 quired to participate in the program (in22 cluding an individual who would otherwise

23 be exempt from participation in the pro24 gram solely by reason of subparagraph

25 (C)(iii)), require such parent to participate
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1 in a JOBS activity (including a work activ2 ity) approved by the State;

3 ‘‘(iii) establish criteria in accordance

4 with regulations of the Secretary under

5 which a custodial parent described in

6 clauses (i) and (ii) who has not attained 20

7 years of age may be exempted from the re8 quirements under such clause but the

9 number of such parents exempted from

10 such requirements shall not exceed 50 per11 cent in fiscal year 2000 or any fiscal year

12 thereafter; and

13 ‘‘(iv) at the option of the State, some

14 or all custodial parents who are under age

15 20 (and pregnant women under age 20)

16 who are receiving aid under this part will

17 be required to participate in a program of

18 monetary incentives and penalties, consist19 ent with subsection (j);’’.

20 (b) STATE OPTION TO PROVIDE ADDITIONAL INCEN21 TIVES AND PENALTIES TO ENCOURAGE TEENAGE PAR22 ENTS TO COMPLETE HIGH SCHOOL—Section 402 (42

23 U.S.C. 602) is amended by adding at the end the following

24 new subsection:
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1 ‘‘(j)(1) If a State chooses to conduct a program of

2 monetary incentives and penalties to encourage custodial

3 parents (and pregnant women) who are under age 20 to

4 complete their high school (or equivalent) education, and

5 participate in parenting activities, the State shall amend

6 its State plan—

7 ‘‘(A) to specify the one or more political sub8 divisions in which the State will conduct the pro9 gram (or other clearly defined geographic area or

10 areas), and

11 ‘‘(B) to describe its program in detail.

12 ‘‘(2) A program under this subsection—

13 ‘‘(A) may, at the option of the State, include all

14 such parents who are under age 21;

15 ‘‘(B) may, at the option of the State, require

16 full-time participation in secondary school or equiva17 lent educational activities, or participation in a

18 course or program leading to a skills certificate

19 found appropriate by the State agency or parenting

20 education activities (or any combination of such ac21 tivities and secondary education);

22 ‘‘(C) shall require that the case manager as23 signed to the custodial parent pursuant to para24 graph (3) or (4) of section 482(b) will review the

25 needs of such parent and will assure that, either in
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1 the initial development or revision of the parent’s

2 employability plan, there will be included a descrip3 tion of the services that will be provided to the par4 ent and the way in which the case manager and

5 service providers will coordinate with the educational

6 or skills training activities in which the custodial

7 parent is participating;

8 ‘‘(D) shall provide monetary incentives for more

9 than minimally acceptable performance of required

10 educational activities; and

11 ‘‘(E) shall provide penalties which may be those

12 required by subsection (a)(19)(G) or, with the ap13 proval of the Secretary, other monetary penalties

14 that the State finds will better achieve the objectives

15 of the program.

16 ‘‘(3) When a monetary incentive is payable because

17 of the more than minimally acceptable performance of re18 quired educational activities by a custodial parent, the in19 centive shall be paid directly to such parent, regardless

20 of whether the State agency makes payment of aid under

21 the State plan directly to such parent.

22 ‘‘(4)(A) For purposes of this part, monetary incen23 tives paid under this subsection shall be considered aid

24 to families with dependent children.
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1 ‘‘(B) For purposes of any other Federal or federally

2 assisted program based on need, no monetary incentive

3 paid under this subsection shall be considered income in

4 determining a family’s eligibility for or amount of benefits

5 under such program, and if aid is reduced by reason of

6 a penalty under this subsection, such other program shall

7 treat the family involved as if no such penalty has been

8 applied.

9 ‘‘(5) The State agency shall from time to time provide

10 such information as the Secretary may request, and other11 wise cooperate with the Secretary, in order to permit eval12 uation of the effectiveness on a broad basis of the State’s

13 program conducted under this subsection.’’.

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

15 this section shall be effective with respect to calendar

16 quarters beginning on or after October 1, 1996.

17 SEC. 203. LIVING ARRANGEMENT REQUIREMENTS.

18 (a) IN GENERAL.—Section 402(a)(43) (42 U.S.C.

19 602(a)(43)) is amended—

20 (1) in the matter preceding subparagraph (A),

21 by striking ‘‘at the option of the State,’’,

22 (2) in subparagraph (A), by redesignating

23 clauses (i) and (ii) as subclauses (I) and (II), respec24 tively,
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1 (3) by striking ‘‘(A) subject to subparagraph

2 (B),’’ and inserting ‘‘(A)(i) subject to clause (ii),’’,

3 (4) in subclause (II) of subparagraph (A)(i), as

4 redesignated—

5 (A) by striking ‘‘(where possible)’’, and

6 (B) by striking ‘‘or other adult relative’’

7 and inserting ‘‘other adult relative, or other

8 adult supervising the living arrangement’’, and

9 (5) by striking subparagraph (B) and inserting

10 the following:

11 ‘‘(ii) clause (i) does not apply in any case

12 in which the State agency—

13 ‘‘(I) determines that the physical or

14 emotional health or safety of such individ15 ual or such dependent child would be jeop16 ardized if such individual and such depend17 ent child lived in the same residence with

18 such individual’s own parent or legal

19 guardian; or

20 ‘‘(II) otherwise determines in accord21 ance with regulations issued by the Sec22 retary that there is good cause for waiving

23 such clause; and

24 ‘‘(B) if an individual is not residing in an

25 alternative adult-supervised living arrangement
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1 that is approved by the State agency, the State

2 agency (in consultation with the child welfare

3 agency) is required to assist the individual in

4 locating an appropriate living arrangement;’’.

5 (b) EFFECTIVE DATE.—The amendments made by

6 this section shall be effective with respect to calendar

7 quarters beginning on or after October 1, 1997.

8 Subtitle B—State Flexibility

9 PART I—ESTABLISHMENT OF INTERAGENCY

10 WELFARE REVIEW BOARD

11 SEC. 211. INTERAGENCY WELFARE REVIEW BOARD.

12 (a) ESTABLISHMENT AND PURPOSE.—In order to fa13 cilitate the consideration of welfare program requirement

14 waiver requests that involve more than 1 Federal depart15 ment or agency, there is established an Interagency Wel16 fare Review Board (hereafter in this part referred to as

17 the ‘‘Board’’).

18 (b) MEMBERSHIP.—The Board shall consist of the

19 following members:

20 (1) The Secretary of Agriculture (or the des21 ignee of the Secretary).

22 (2) The Secretary of Health and Human Serv23 ices (or the designee of the Secretary).

24 (3) The Secretary of Housing and Urban Devel25 opment (or the designee of the Secretary).
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1 (4) The Secretary of Labor (or the designee of

2 the Secretary).

3 (5) The Secretary of Education (or the designee

4 of the Secretary).

5 (6) Such other individuals as the President de6 termines appropriate.

7 (c) CHAIRPERSON.—The President shall appoint 1

8 member of the Board to serve as Chairperson of the

9 Board.

10 (d) VACANCIES.—A vacancy in the position of Chair11 person shall be filled in the manner in which the original

12 appointment was made.

13 (e) NO ADDITIONAL COMPENSATION.—The members

14 of the Board may not be provided additional pay, allow15 ances, or benefits by reason of their service on the Board.

16 (f) POWERS.—

17 (1) ASSISTANCE OF OTHER FEDERAL ENTI18 TIES.—A member of the Board shall detail to the

19 Chairperson, on a nonreimbursable basis, such offi20 cers and employees of the department or agency

21 headed by the member, and shall make available to

22 the Chairperson such assistance as the Chairperson

23 may require to carry out the activities of the Board.

24 (2) USE OF UNITED STATES MAILS.—The

25 Chairperson may use the United States mails in the
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1 same manner and under the same conditions as

2 other departments and agencies of the United

3 States.

4 (g) DUTIES.—

5 (1) IN GENERAL.—The Board shall act as the

6 central organization for coordinating the review of

7 applications submitted under section 212 by States

8 for waivers from the requirements of eligible Federal

9 low-income assistance programs that involve more

10 than 1 department or agency of the Federal Govern11 ment.

12 (2) DUTY TO PROVIDE TECHNICAL ASSIST13 ANCE.—The Board shall provide assistance and

14 technical advice to entities submitting applications

15 under section 212 and implementing an assistance

16 plan under an application approved under section

17 213.

18 SEC. 212. WAIVER APPLICATION.

19 Any State that is receiving or is eligible to receive

20 funds or other assistance under eligible Federal low-in21 come assistance programs involving more than 1 Federal

22 department or agency and desires a waiver authorized by

23 law from the Federal requirements with respect to such

24 programs may submit to the Board an application for such
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1 waiver. The application shall be submitted in the form and

2 manner prescribed by the Board.

3 SEC. 213. REVIEW AND APPROVAL OF APPLICATIONS.

4 (a) REVIEW OF APPLICATIONS.—The Board shall re5 view a waiver application submitted under section 212 and

6 issue an advisory opinion with respect to such waiver ap7 plication. Final decisions with respect to the waiver appli8 cation shall be made by the Secretaries of the departments

9 or agencies that have responsibility for administering the

10 programs with respect to which the waiver is sought.

11 (b) ACTION ON APPLICATION.—The Board shall es12 tablish a schedule for the consideration of a waiver appli13 cation submitted under section 212, to assure that the

14 State will receive a final decision from the Secretaries de15 scribed in subsection (a) on the waiver application not

16 later than 90 days after the date the completed application

17 is received by the Board.

18 SEC. 214. DEFINITION OF STATE.

19 (a) IN GENERAL.—For purposes of this part, the

20 term ‘‘State’’ means any of the 50 States, the District

21 of Columbia, Puerto Rico, American Samoa, Guam, and

22 the Virgin Islands.

23 (b) INDIAN TRIBES.—In the case of an eligible Fed24 eral low-income assistance program under which aid or as25 sistance is provided with respect to an Indian tribe, the
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1 Indian tribal organization is deemed to be a State for pur2 poses of this part.

3 PART II—ADDITIONAL PROVISIONS CONCERNING

4 WAIVERS

5 SEC. 221. SCHEDULE FOR CONSIDERATION OF WAIVER AP6 PLICATIONS.

7 Section 1115 (42 U.S.C. 1315) is amended—

8 (1) by redesignating paragraphs (1) and (2) as

9 subparagraphs (A) and (B), respectively;

10 (2) by striking ‘‘(a) In’’ and inserting ‘‘(a)(1)

11 In’’; and

12 (3) by adding at the end the following new

13 paragraph:

14 ‘‘(2) Not later than 90 days after the date a com15 pleted application from a State for a waiver under para16 graph (1) is received by the Secretary, the Secretary shall

17 approve or disapprove such application. In considering an

18 application for a waiver, there shall be a presumption for

19 approval in the case of a request for a waiver that is simi20 lar in substance and scale to one that the Secretary has

21 previously approved.’’.
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1 SEC. 222. STATE AUTHORITY TO ESTABLISH CERTAIN AFDC

2 RULES.

3 (a) IN GENERAL.—Section 1115 (42 U.S.C. 1315)

4 is amended by adding at the end the following new sub5 section:

6 ‘‘(e)(1) Any State having an approved plan under

7 part A of title IV may, without receiving a waiver from

8 the Secretary pursuant to this section or otherwise, estab9 lish any of the program changes described in paragraph

10 (2) for purposes of providing aid or assistance under part

11 A of such title.

12 ‘‘(2) The program changes described in this para13 graph are the following:

14 ‘‘(A) Income and resource requirements other

15 than those specified in section 402(a)(7) in order to

16 test the effect of such requirements on an individ17 ual’s effort to obtain employment.

18 ‘‘(B) Requirements relating to the disregard of

19 income other than those specified in section

20 402(a)(8).

21 ‘‘(C) Standards for defining unemployment

22 other than those prescribed by the Secretary pursu23 ant to section 407(a).

24 ‘‘(D) Rules for the eligibility for aid or assist25 ance under part A of title IV of an unemployed par26 ent without regard to section 407(b)(1)(A)(iii).
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1 ‘‘(3)(A) The Secretary shall evaluate a sufficient

2 number of the program changes described in paragraph

3 (2) which are established by a State in order to determine

4 the impact of such changes on the receipt of aid to families

5 with dependent children program under part A of title IV

6 in such State, earnings achieved, costs to the Federal and

7 State governments, and such other factors as the Sec8 retary may determine.

9 ‘‘(B) Any State chosen by the Secretary for an eval10 uation under subparagraph (A) shall cooperate with such

11 evaluation.

12 ‘‘(C) There are authorized to be appropriated such

13 sums as may be necessary for the purpose of conducting

14 evaluations under this paragraph.

15 ‘‘(4) The authority provided by paragraphs (1) and

16 (2) of this subsection shall expire 5 years after the date

17 on which this subsection takes effect.’’.

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

19 this section shall take effect on October 1, 1996.

20 SEC. 223. WAIVER AUTHORITY FOR THE JOBS PROGRAM.

21 Section 1115(a) (42 U.S.C. 1315(a)) is amended—

22 (1) in the matter preceding paragraph (1), by

23 striking ‘‘part A or D of title IV’’ and inserting

24 ‘‘part A, D, or F of title IV’’;
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1 (2) in paragraph (1), by inserting ‘‘482,’’ after

2 ‘‘454,’’; and

3 (3) in paragraph (2), by inserting ‘‘402(g),’’

4 after ‘‘section 3,’’.

5 TITLE III—CHILD SUPPORT

6 ENFORCEMENT

7 SEC. 300. SHORT TITLE.

8 This title may be cited as the ‘‘Interstate Child Sup9 port Responsibility Act of 1995’’.

10 Subtitle A—Improvements to the

11 Child Support Collection System

12 PART I—ELIGIBILITY AND OTHER MATTERS

13 CONCERNING TITLE IV–D PROGRAM CLIENTS

14 SEC. 301. COOPERATION REQUIREMENT AND GOOD CAUSE

15 EXCEPTION.

16 (a) CHILD SUPPORT ENFORCEMENT REQUIRE17 MENTS.—Section 454 is amended—

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

19 (23);

20 (2) by striking the period at the end of para21 graph (24) and inserting ‘‘; and’’; and

22 (3) by adding after paragraph (24) the follow23 ing new paragraph:

24 ‘‘(25) provide that the State agency administer25 ing the plan under this part—
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1 ‘‘(A) will make the determination specified

2 under paragraph (4), as to whether an individ3 ual is cooperating with efforts to establish pa4 ternity and secure support (or has good cause

5 not to cooperate with such efforts) for purposes

6 of the requirements of sections 402(a)(26) and

7 1912;

8 ‘‘(B) will advise individuals, both orally

9 and in writing, of the grounds for good cause

10 exceptions to the requirement to cooperate with

11 such efforts;

12 ‘‘(C) will take the best interests of the

13 child into consideration in making the deter14 mination whether such individual has good

15 cause not to cooperate with such efforts;

16 ‘‘(D)(i) will make the initial determination

17 as to whether an individual is cooperating (or

18 has good cause not to cooperate) with efforts to

19 establish paternity within 10 days after such in20 dividual is referred to such State agency by the

21 State agency administering the program under

22 part A of title XIX;

23 ‘‘(ii) will make redeterminations as to co24 operation or good cause at appropriate inter25 vals; and
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1 ‘‘(iii) will promptly notify the individual,

2 and the State agencies administering such pro3 grams, of each such determination and redeter4 mination;

5 ‘‘(E) with respect to any child born on or

6 after the date 10 months after the date of the

7 enactment of this provision—

8 ‘‘(i) will not determine (or redeter9 mine) the mother of such child to be co10 operating with efforts to establish pater11 nity unless the mother furnishes—

12 ‘‘(I) the name of the putative fa13 ther (or fathers); and

14 ‘‘(II) sufficient additional infor15 mation to enable the State agency, if

16 reasonable efforts were made, to ver17 ify the identity of the person named

18 as the putative father (including such

19 information as the putative father’s

20 present address, telephone number,

21 date of birth, past or present place of

22 employment, school previously or cur23 rently attended, and names and ad24 dresses of parents, friends, or rel25 atives able to provide location infor-
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1 mation, or other information that

2 could enable service of process on

3 such person); and

4 ‘‘(ii) in the case of a caretaker who is

5 not the mother and who is receiving pay6 ments for the child under part A, will de7 termine (or redetermine) such caretaker to

8 be reasonably cooperating with efforts to

9 establish paternity under regulations pre10 scribed by the Secretary; and

11 ‘‘(F)(i) (where a custodial parent who was

12 initially determined not to be cooperating (or to

13 have good cause not to cooperate) is later deter14 mined to be cooperating or to have good cause

15 not to cooperate) will immediately notify the

16 State agencies administering the programs

17 under part A of title XIX that this eligibility

18 condition has been met; and

19 ‘‘(ii) (where a custodial parent was initially

20 determined to be cooperating (or to have good

21 cause not to cooperate)) will not later determine

22 such individual not to be cooperating (or not to

23 have good cause not to cooperate) until such in24 dividual has been afforded an opportunity for a

25 hearing.’’.
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1 (b) AFDC AMENDMENTS.—

2 (1) Section 402(a)(11) is amended by striking

3 ‘‘furnishing of’’ and inserting ‘‘application for’’.

4 (2) Section 402(a)(26) is amended—

5 (A) in each of subparagraphs (A) and (B),

6 by redesignating clauses (i) and (ii) as

7 subclauses (I) and (II);

8 (B) by indenting and redesignating sub9 paragraphs (A), (B), and (C) as clauses (i), (ii),

10 and (iv), respectively;

11 (C) in clause (ii), as redesignated—

12 (i) by striking ‘‘is claimed, or in ob13 taining any other payments or property

14 due such applicant or such child,’’ and in15 serting ‘‘is claimed;’’; and

16 (ii) by striking ‘‘unless’’ and all that

17 follows through ‘‘aid is claimed; and’’;

18 (D) by adding after clause (ii) the follow19 ing new clause:

20 ‘‘(iii) to cooperate with the State in

21 obtaining any other payments or property

22 due such applicant or such child; and’’;

23 (E) in the matter preceding clause (i), as

24 redesignated, to read as follows:

25 ‘‘(26) provide—
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1 ‘‘(A) that, as a condition of eligibility for

2 aid, each applicant or recipient will be required

3 (subject to subparagraph (C))—’’;

4 (F) in subparagraph (A)(iv), as redesig5 nated, by striking ‘‘, unless such individual’’

6 and all that follows through ‘‘individuals in7 volved’’;

8 (G) by adding at the end the following new

9 subparagraphs:

10 ‘‘(B) that the State agency will imme11 diately refer each applicant requiring paternity

12 establishment services to the State agency ad13 ministering the program under part D;

14 ‘‘(C) that an individual will not be required

15 to cooperate with the State, as provided under

16 subparagraph (A), if the individual is found to

17 have good cause for refusing to cooperate, as

18 determined in accordance with standards pre19 scribed by the Secretary, which standards shall

20 take into consideration the best interests of the

21 child on whose behalf aid is claimed—

22 ‘‘(i) to the satisfaction of the State

23 agency administering the program under

24 part D, as determined in accordance with

25 section 454(25), with respect to the re-
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1 quirements under clauses (i) and (ii) of

2 subparagraph (A); and

3 ‘‘(ii) to the satisfaction of the State

4 agency administering the program under

5 this part, with respect to the requirements

6 under clauses (iii) and (iv) of subpara7 graph (A);

8 ‘‘(D) that (except as provided in subpara9 graph (E)) an applicant requiring paternity es10 tablishment services (other than an individual

11 eligible for emergency assistance as defined in

12 section 406(e)) shall not be eligible for any aid

13 under this part until such applicant—

14 ‘‘(i) has furnished to the agency ad15 ministering the State plan under part D

16 the information specified in section

17 454(25)(E); or

18 ‘‘(ii) has been determined by such

19 agency to have good cause not to cooper20 ate;

21 ‘‘(E) that the provisions of subparagraph

22 (D) shall not apply—

23 ‘‘(i) if the State agency specified in

24 such subparagraph has not, within 10 days

25 after such individual was referred to such
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1 agency, provided the notification required

2 by section 454(25)(D)(iii), until such noti3 fication is received; and

4 ‘‘(ii) if such individual appeals a de5 termination that the individual lacks good

6 cause for noncooperation, until after such

7 determination is affirmed after notice and

8 opportunity for a hearing; and’’; and

9 (H)(i) by relocating and redesignating as

10 subparagraph (F) the text at the end of sub11 paragraph (A)(ii) beginning with ‘‘that, if the

12 relative’’ and all that follows through the semi13 colon;

14 (ii) in subparagraph (F), as so redesig15 nated and relocated, by striking ‘‘subpara16 graphs (A) and (B) of this paragraph’’ and in17 serting ‘‘subparagraph (A)’’; and

18 (iii) by striking ‘‘and’’ at the end of sub19 paragraph (a)(ii).

20 (c) MEDICAID AMENDMENTS.—Section 1912(a) is

21 amended—

22 (1) in paragraph (1)(B), by inserting ‘‘(except

23 as provided in paragraph (2))’’ after ‘‘to cooperate

24 with the State’’;
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1 (2) in subparagraphs (B) and (C) of paragraph

2 (1) by striking ‘‘, unless’’ and all that follows and

3 inserting a semicolon; and

4 (3) by redesignating paragraph (2) as para5 graph (5), and inserting after paragraph (1) the fol6 lowing new paragraphs:

7 ‘‘(2) provide that the State agency will imme8 diately refer each applicant or recipient requiring

9 paternity establishment services to the State agency

10 administering the program under part D of title IV;

11 ‘‘(3) provide that an individual will not be re12 quired to cooperate with the State, as provided

13 under paragraph (1), if the individual is found to

14 have good cause for refusing to cooperate, as deter15 mined in accordance with standards prescribed by

16 the Secretary, which standards shall take into con17 sideration the best interests of the individuals in18 volved—

19 ‘‘(A) to the satisfaction of the State agency

20 administering the program under part D, as de21 termined in accordance with section 454(25),

22 with respect to the requirements to cooperate

23 with efforts to establish paternity and to obtain

24 support (including medical support) from a par25 ent; and
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1 ‘‘(B) to the satisfaction of the State agen2 cy administering the program under this title,

3 with respect to other requirements to cooperate

4 under paragraph (1);

5 ‘‘(4) provide that (except as provided in para6 graph (5)) an applicant requiring paternity estab7 lishment services (other than an individual eligible

8 for emergency assistance as defined in section

9 406(e), or presumptively eligible pursuant to section

10 1920) shall not be eligible for medical assistance

11 under this title until such applicant—

12 ‘‘(i) has furnished to the agency admin13 istering the State plan under part D of title IV

14 the information specified in section 454(25)(E);

15 or

16 ‘‘(ii) has been determined by such agency

17 to have good cause not to cooperate; and

18 ‘‘(5) provide that the provisions of paragraph

19 (4) shall not apply with respect to an applicant—

20 ‘‘(i) if such agency has not, within 10 days

21 after such individual was referred to such agen22 cy, provided the notification required by section

23 454(25)(D)(iii), until such notification is re24 ceived); and
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1 ‘‘(ii) if such individual appeals a deter2 mination that the individual lacks good cause

3 for noncooperation, until after such determina4 tion is affirmed after notice and opportunity for

5 a hearing.’’.

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

7 this section shall be effective with respect to applications

8 filed in or after the first calendar quarter beginning 10

9 months or more after the date of the enactment of this

10 Act (or such earlier quarter as the State may select) for

11 aid under part A of title IV of the Social Security Act

12 or for medical assistance under title XIX of such Act.

13 SEC. 302. STATE OBLIGATION TO PROVIDE PATERNITY ES14 TABLISHMENT AND CHILD SUPPORT EN15 FORCEMENT SERVICES.

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

17 (42 U.S.C. 666(a)) is amended by adding at the end the

18 following new paragraph:

19 ‘‘(12) Procedures under which—

20 ‘‘(A) every child support order established

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

22 1998, is recorded in the central case registry

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

24 and
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1 ‘‘(B) child support payments are collected

2 through the centralized collections unit estab3 lished in accordance with section 454B—

4 ‘‘(i) on and after October 1, 1998,

5 under each order subject to wage withhold6 ing under section 466(b); and

7 ‘‘(ii) on and after October 1, 1999,

8 under each other order required to be re9 corded in such central case registry under

10 this paragraph or section 454A(e)—

11 ‘‘(I) if requested by either party

12 subject to such order, or

13 ‘‘(II) at the option of the State,

14 regardless of whether application is

15 made for services under this part.’’.

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

17 U.S.C. 654) is amended—

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

19 following new paragraph:

20 ‘‘(4) provide that such State will undertake to

21 provide appropriate services under this part to—

22 ‘‘(A) each child with respect to whom an

23 assignment is effective under section

24 402(a)(26), 471(a)(17), or 1912 (except in

25 cases in which the State agency determines, in
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1 accordance with paragraph (25), that it is

2 against the best interests of the child to do so);

3 and

4 ‘‘(B) each child not described in subpara5 graph (A)—

6 ‘‘(i) with respect to whom an individ7 ual applies for such services; or

8 ‘‘(ii) on and after October 1, 1998,

9 with respect to whom a support order is

10 recorded in the central State case registry

11 established under section 454A, if applica12 tion is made for services under this part;’’;

13 and

14 (2) in paragraph (6)—

15 (A) by striking ‘‘(6) provide that’’ and all

16 that follows through subparagraph (A) and in17 serting the following:

18 ‘‘(6) provide that—

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

20 made available to nonresidents on the same

21 terms as to residents;’’;

22 (B) in subparagraph (B)—

23 (i) by inserting ‘‘on individuals not re24 ceiving assistance under part A’’ after

25 ‘‘such services shall be imposed’’; and
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1 (ii) by inserting ‘‘but no fees or costs

2 shall be imposed on any absent or custo3 dial parent or other individual for inclusion

4 in the central State registry maintained

5 pursuant to section 454A(e)’’; and

6 (C) in each of subparagraphs (B), (C),

7 (D), and (E), by indenting such subparagraph

8 and aligning its left margin with the left margin

9 of subparagraph (A); and

10 (D) in each of subparagraphs (B), (C),

11 and (D), by striking the final comma and in12 serting a semicolon.

13 (c) CONFORMING AMENDMENTS.—

14 (1) PATERNITY ESTABLISHMENT PERCENT15 AGE.—Section 452(g)(2)(A) (42 U.S.C.

16 652(g)(2)(A)) is amended by striking ‘‘454(6)’’ each

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

18 (2) STATE PLAN.—Section 454(23) (42 U.S.C.

19 654(23)) is amended, effective October 1, 1998, by

20 striking ‘‘information as to any application fees for

21 such services and’’.

22 (3) PROCEDURES TO IMPROVE ENFORCE23 MENT.—Section 466(a)(3)(B) (42 U.S.C.

24 666(a)(3)(B)) is amended by striking ‘‘in the case of

25 overdue support which a State has agreed to collect
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1 under section 454(6)’’ and inserting ‘‘in any other

2 case’’.

3 (4) DEFINITION OF OVERDUE SUPPORT.—Sec4 tion 466(e) (42 U.S.C. 666(e)) is amended by strik5 ing ‘‘or (6)’’.

6 SEC. 303. DISTRIBUTION OF PAYMENTS.

7 (a) DISTRIBUTIONS THROUGH STATE CHILD SUP8 PORT ENFORCEMENT AGENCY TO FORMER ASSISTANCE

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

10 amended—

11 (1) in subparagraph (A)—

12 (A) by inserting ‘‘except as otherwise spe13 cifically provided in section 464 or 466(a)(3),’’

14 after ‘‘is effective,’’; and

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

16 follows through the semicolon; and

17 (2) in subparagraph (B), by striking ‘‘, except’’

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

19 (b) DISTRIBUTION TO A FAMILY CURRENTLY RE20 CEIVING AFDC.—Section 457 (42 U.S.C. 657) is amend21 ed—

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

23 subsection (b) as subsection (a);

24 (2) in subsection (a), as redesignated—
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1 (A) in the matter preceding paragraph (2),

2 to read as follows:

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

4 AFDC.—Amounts collected under this part during any

5 month as support of a child who is receiving assistance

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

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

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

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

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

11 shall be taken from each of—

12 ‘‘(A) the amounts received in a month

13 which represent payments for that month; and

14 ‘‘(B) the amounts received in a month

15 which represent payments for a prior month

16 which were made by the absent parent in that

17 prior month;

18 and shall be paid to the family without affecting its

19 eligibility for assistance or decreasing any amount

20 otherwise payable as assistance to such family dur21 ing such month;’’;

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

23 and all that follows through the period and in24 serting ‘‘; then (B) from any remainder,

25 amounts equal to arrearages of such support
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1 obligations assigned, pursuant to part A, to any

2 other State or States shall be paid to such

3 other State or States and used to pay any such

4 arrearages (with appropriate reimbursement of

5 the Federal Government to the extent of its

6 participation in the financing); and then (C)

7 any remainder shall be paid to the family.’’; and

8 (3) by inserting after subsection (a), as redesig9 nated, the following new subsection:

10 ‘‘(b) ALTERNATIVE DISTRIBUTION IN CASE OF FAM11 ILY RECEIVING AFDC.—In the case of a State electing

12 the option under this subsection, amounts collected as de13 scribed in subsection (a) shall be distributed as follows:

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

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

16 shall be taken from each of—

17 ‘‘(A) the amounts received in a month

18 which represent payments for that month; and

19 ‘‘(B) the amounts received in a month

20 which represent payments for a prior month

21 which were made by the absent parent in that

22 prior month;

23 and shall be paid to the family without affecting its

24 eligibility for assistance or decreasing any amount
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1 otherwise payable as assistance to such family dur2 ing such month;

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

4 equal to the balance of support owed for the current

5 month shall be paid to the family;

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

7 to arrearages of such support obligations assigned,

8 pursuant to part A, to the State making the collec9 tion shall be retained and used by such State to pay

10 any such arrearages (with appropriate reimburse11 ment of the Federal Government to the extent of its

12 participation in the financing);

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

14 equal to arrearages of such support obligations as15 signed, pursuant to part A, to any other State or

16 States shall be paid to such other State or States

17 and used to pay any such arrearages (with appro18 priate reimbursement of the Federal Government to

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

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

21 family.’’.

22 (c) DISTRIBUTION TO A FAMILY NOT RECEIVING

23 AFDC.—

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

25 657(c)) is amended to read as follows:
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1 ‘‘(c) DISTRIBUTIONS IN CASE OF FAMILY NOT RE2 CEIVING AFDC.—Amounts collected by a State agency

3 under this part during any month as support of a child

4 who is not receiving assistance under part A (or of a par5 ent or caretaker relative of such a child) shall (subject to

6 the remaining provisions of this section) be distributed as

7 follows:

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

9 support owed for such month shall be paid to the

10 family;

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

12 equal to arrearages of such support obligations for

13 months during which such child did not receive as14 sistance under part A shall be paid to the family;

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

16 to arrearages of such support obligations assigned to

17 the State making the collection pursuant to part A

18 shall be retained and used by such State to pay any

19 such arrearages (with appropriate reimbursement of

20 the Federal Government to the extent of its partici21 pation in the financing); and

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

23 equal to arrearages of such support obligations as24 signed to any other State pursuant to part A shall

25 be paid to such other State or States, and used to
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1 pay such arrearages, in the order in which such ar2 rearages accrued (with appropriate reimbursement

3 of the Federal Government to the extent of its par4 ticipation in the financing).’’.

5 (2) EFFECTIVE DATE.—The amendment made

6 by paragraph (1) shall become effective on October

7 1, 1999.

8 (d) DISTRIBUTION TO A CHILD RECEIVING ASSIST9 ANCE UNDER TITLE IV–E.—Section 457(d) (42 U.S.C.

10 657(d)) is amended, in the matter preceding paragraph

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

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

13 ‘‘(d) DISTRIBUTIONS IN CASE OF A CHILD RECEIV14 ING ASSISTANCE UNDER TITLE IV–E.—Amounts’’.

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

16 Human Services shall promulgate regulations—

17 (1) under part D of title IV of the Social Secu18 rity Act, establishing a uniform nationwide standard

19 for allocation of child support collections from an ob20 ligor owing support to more than 1 family; and

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

22 standards applicable to States electing the alter23 native formula under section 457(b) of such Act for

24 distribution of collections on behalf of families re25 ceiving Aid to Families with Dependent Children,
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1 designed to minimize irregular monthly payments to

2 such families.

3 (f) CLERICAL AMENDMENTS.—Section 454 (42

4 U.S.C. 654) is amended—

5 (1) in paragraph (11)—

6 (A) by striking ‘‘(11)’’ and inserting

7 ‘‘(11)(A)’’; and

8 (B) by inserting after the semicolon ‘‘and’’;

9 and

10 (2) by redesignating paragraph (12) as sub11 paragraph (B) of paragraph (11).

12 SEC. 304. RIGHTS TO NOTIFICATION AND HEARINGS.

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

14 amended by section 302(f), is amended by inserting after

15 paragraph (11) the following new paragraph:

16 ‘‘(12) establish procedures to provide that—

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

18 receiving services under this part—

19 ‘‘(i) receive notice of all proceedings in

20 which support obligations might be estab21 lished or modified; and

22 ‘‘(ii) receive a copy of any order estab23 lishing or modifying a child support obliga24 tion, or (in the case of a petition for modi25 fication) a notice of determination that
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1 there should be no change in the amount

2 of the child support award, within 14 days

3 after issuance of such order or determina4 tion;

5 ‘‘(B) individuals applying for or receiving

6 services under this part have access to a fair

7 hearing or other formal complaint procedure

8 that meets standards established by the Sec9 retary and ensures prompt consideration and

10 resolution of complaints (but the resort to such

11 procedure shall not stay the enforcement of any

12 support order); and

13 ‘‘(C) the State may not provide to any

14 noncustodial parent of a child representation re15 lating to the establishment or modification of

16 an order for the payment of child support with

17 respect to that child, unless the State makes

18 provision for such representation outside the

19 State agency;’’.

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

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

22 SEC. 305. PRIVACY SAFEGUARDS.

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

24 U.S.C. 454), as amended by section 301(a), is amended—
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1 (1) by striking ‘‘and’’ at the end of paragraph

2 (24);

3 (2) by striking the period at the end of para4 graph (25) and inserting ‘‘; and’’; and

5 (3) by adding after paragraph (25) the follow6 ing:

7 ‘‘(26) provide that the State will have in effect

8 safeguards applicable to all sensitive and confidential

9 information handled by the State agency designed to

10 protect the privacy rights of the parties, including—

11 ‘‘(A) safeguards against unauthorized use

12 or disclosure of information relating to proceed13 ings or actions to establish paternity, or to es14 tablish or enforce support;

15 ‘‘(B) prohibitions on the release of infor16 mation on the whereabouts of 1 party to an17 other party against whom a protective order

18 with respect to the former party has been en19 tered; and

20 ‘‘(C) prohibitions on the release of infor21 mation on the whereabouts of 1 party to an22 other party if the State has reason to believe

23 that the release of the information may result

24 in physical or emotional harm to the former

25 party.’’.
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1 (b) EFFECTIVE DATE.—The amendment made by

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

3 PART II—PROGRAM ADMINISTRATION AND

4 FUNDING

5 SEC. 311. FEDERAL MATCHING PAYMENTS.

6 (a) INCREASED BASE MATCHING RATE.—Section

7 455(a)(2) (42 U.S.C. 655(a)(2)) is amended to read as

8 follows:

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

10 purposes of paragraph (1)(A) is—

11 ‘‘(A) for fiscal years 1997 and 1998, 66

12 percent, and

13 ‘‘(B) for fiscal year 1999 and succeeding

14 fiscal years, 75 percent.’’.

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

16 U.S.C. 655) is amended—

17 (1) in subsection (a)(1), in the matter preced18 ing subparagraph (A), by striking ‘‘From’’ and in19 serting ‘‘Subject to subsection (c), from’’; and

20 (2) by inserting after subsection (b) the follow21 ing new subsection:

22 ‘‘(c) Notwithstanding the provisions of subsection (a),

23 total expenditures for the State program under this part

24 for fiscal year 1997 and each succeeding fiscal year (ex25 cluding 1-time capital expenditures for automation), re-
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1 duced by the percentage specified for such fiscal year

2 under subsection (a)(2) shall not be less than such total

3 expenditures for fiscal year 1996, reduced by 66 percent.’’.

4 SEC. 312. PERFORMANCE-BASED INCENTIVES AND PEN5 ALTIES.

6 (a) INCENTIVE ADJUSTMENTS TO FEDERAL MATCH7 ING RATE.—Section 458 (42 U.S.C. 658) is amended to

8 read as follows:

9 ‘‘INCENTIVE ADJUSTMENTS TO MATCHING RATE

10 ‘‘SEC. 458. (a) INCENTIVE ADJUSTMENT.—

11 ‘‘(1) IN GENERAL.—In order to encourage and

12 reward State child support enforcement programs

13 which perform in an effective manner, the Federal

14 matching rate for payments to a State under section

15 455(a)(1)(A), for each fiscal year beginning on or

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

17 reflecting the sum of the applicable incentive adjust18 ments (if any) determined in accordance with regu19 lations under this section with respect to Statewide

20 paternity establishment and to overall performance

21 in child support enforcement.

22 ‘‘(2) STANDARDS.—

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

24 specify in regulations—

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

26 rates of improvement as alternatives to
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1 such levels, which States must attain to

2 qualify for incentive adjustments under

3 this section; and

4 ‘‘(ii) the amounts of incentive adjust5 ment that shall be awarded to States

6 achieving specified accomplishment or im7 provement levels, which amounts shall be

8 graduated, ranging up to—

9 ‘‘(I) 5 percentage points, in con10 nection with Statewide paternity es11 tablishment; and

12 ‘‘(II) 10 percentage points, in

13 connection with overall performance in

14 child support enforcement.

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

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

17 adjustment amounts pursuant to subparagraph

18 (A)(ii), the Secretary shall ensure that the ag19 gregate number of percentage point increases as

20 incentive adjustments to all States do not ex21 ceed such aggregate increases as assumed by

22 the Secretary in estimates of the cost of this

23 section as of June 1995, unless the aggregate

24 performance of all States exceeds the projected
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1 aggregate performance of all States in such cost

2 estimates.

3 ‘‘(3) DETERMINATION OF INCENTIVE ADJUST4 MENT.—The Secretary shall determine the amount

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

6 the basis of the data submitted by the State pursu7 ant to section 454(15)(B) concerning the levels of

8 accomplishment (and rates of improvement) with re9 spect to performance indicators specified by the Sec10 retary pursuant to this section.

11 ‘‘(4) FISCAL YEAR SUBJECT TO INCENTIVE AD12 JUSTMENT.—The total percentage point increase de13 termined pursuant to this section with respect to a

14 State program in a fiscal year shall apply as an ad15 justment to the applicable percent under section

16 455(a)(2) for payments to such State for the suc17 ceeding fiscal year.

18 ‘‘(5) RECYCLING OF INCENTIVE ADJUST19 MENT.—A State shall expend in the State program

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

21 Federal Government as a result of an incentive ad22 justment under this section.

23 ‘‘(b) MEANING OF TERMS.—

24 ‘‘(1) STATEWIDE PATERNITY ESTABLISHMENT

25 PERCENTAGE.—
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1 ‘‘(A) IN GENERAL.—For purposes of this

2 section, the term ‘Statewide paternity establish3 ment percentage’ means, with respect to a fiscal

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

5 ‘‘(i) the total number of out-of-wed6 lock children in the State under 1 year of

7 age for whom paternity is established or

8 acknowledged during the fiscal year, to

9 ‘‘(ii) the total number of children re10 quiring paternity establishment born in the

11 State during such fiscal year.

12 ‘‘(B) ALTERNATIVE MEASUREMENT.—The

13 Secretary shall develop an alternate method of

14 measurement for the Statewide paternity estab15 lishment percentage for any State that does not

16 record the out-of-wedlock status of children on

17 birth certificates.

18 ‘‘(2) OVERALL PERFORMANCE IN CHILD SUP19 PORT ENFORCEMENT.—The term ‘overall perform20 ance in child support enforcement’ means a measure

21 or measures of the effectiveness of the State agency

22 in a fiscal year which takes into account factors in23 cluding—
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1 ‘‘(A) the percentage of cases requiring a

2 child support order in which such an order was

3 established;

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

5 support is being paid;

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

7 child support due; and

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

9 program, as determined in accordance with

10 standards established by the Secretary in regu11 lations.’’.

12 (b) ADJUSTMENT OF PAYMENTS UNDER PART D OF

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

14 amended by section 311(a), is amended—

15 (1) by striking the period at the end of sub16 paragraph (C) and inserting a comma; and

17 (2) by adding after and below subparagraph

18 (C), flush with the left margin of the paragraph, the

19 following:

20 ‘‘increased by the incentive adjustment factor (if any) de21 termined by the Secretary pursuant to section 458.’’.

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

23 (42 U.S.C. 654(22)) is amended—
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1 (1) by striking ‘‘incentive payments’’ the first

2 place it appears and inserting ‘‘incentive adjust3 ments’’; and

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

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

6 ‘‘any increases in Federal payments to the State re7 sulting from such incentive adjustments’’.

8 (d) CALCULATION OF IV–D PATERNITY ESTABLISH9 MENT PERCENTAGE.—

10 (1) OVERALL PERFORMANCE.—Section

11 452(g)(1) (42 U.S.C. 652(g)(1)) is amended in the

12 matter preceding subparagraph (A) by inserting ‘‘its

13 overall performance in child support enforcement is

14 satisfactory (as defined in section 458(b) and regula15 tions of the Secretary), and’’ after ‘‘1994,’’.

16 (2) DEFINITION.—Section 452(g)(2)(A) (42

17 U.S.C. 652(g)(2)(A)) is amended, in the matter pre18 ceding clause (i)—

19 (A) by striking ‘‘paternity establishment

20 percentage’’ and inserting ‘‘IV–D paternity es21 tablishment percentage’’; and

22 (B) by striking ‘‘(or all States, as the case

23 may be)’’.

24 (3) MODIFICATION OF REQUIREMENTS.—Sec25 tion 452(g)(3) (42 U.S.C. 652(g)(3)) is amended—
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1 (A) by striking subparagraph (A) and re2 designating subparagraphs (B) and (C) as sub3 paragraphs (A) and (B), respectively;

4 (B) in subparagraph (A), as redesignated,

5 by striking ‘‘the percentage of children born

6 out-of-wedlock in the State’’ and inserting ‘‘the

7 percentage of children in the State who are

8 born out of wedlock or for whom support has

9 not been established’’; and

10 (C) in subparagraph (B), as redesig11 nated—

12 (i) by inserting ‘‘and overall perform13 ance in child support enforcement’’ after

14 ‘‘paternity establishment percentages’’; and

15 (ii) by inserting ‘‘and securing sup16 port’’ before the period.

17 (e) REDUCTION OF PAYMENTS UNDER PART D OF

18 TITLE IV.—

19 (1) NEW REQUIREMENTS.—Section 455 (42

20 U.S.C. 655) is amended—

21 (A) by redesignating subsection (e) as sub22 section (f); and

23 (B) by inserting after subsection (d) the

24 following new subsection:
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1 ‘‘(e)(1) Notwithstanding any other provision of law,

2 if the Secretary finds, with respect to a State program

3 under this part in a fiscal year beginning on or after Octo4 ber 1, 1997—

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

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

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

8 D paternity establishment percentage (as defined in

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

10 overall performance in child support enforcement (as

11 defined in section 458(b)(2)), or to meet other per12 formance measures that may be established by the

13 Secretary, or

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

15 State data conducted pursuant to section

16 452(a)(4)(C), that the State data submitted pursu17 ant to section 454(15)(B) is incomplete or unreli18 able; and

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

20 year—

21 ‘‘(i) the State failed to take sufficient cor22 rective action to achieve the appropriate per23 formance levels as described in subparagraph

24 (A)(i) of this paragraph, or
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1 ‘‘(ii) the data submitted by the State pur2 suant to section 454(15)(B) is incomplete or

3 unreliable,

4 the amounts otherwise payable to the State under this

5 part for quarters following the end of such succeeding fis6 cal year, prior to quarters following the end of the first

7 quarter throughout which the State program is in compli8 ance with such performance requirement, shall be reduced

9 by the percentage specified in paragraph (2).

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

11 shall be—

12 ‘‘(A) not less than 3 nor more than 5 percent,

13 or

14 ‘‘(B) not less than 5 nor more than 7 percent,

15 if the finding is the second consecutive finding made

16 pursuant to paragraph (1), or

17 ‘‘(C) not less than 7 nor more than 10 percent,

18 if the finding is the third or a subsequent consecu19 tive such finding.

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

21 402(a)(27), and section 452(a)(4), a State which is deter22 mined as a result of an audit to have submitted incomplete

23 or unreliable data pursuant to section 454(15)(B), shall

24 be determined to have submitted adequate data if the Sec25 retary determines that the extent of the incompleteness
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1 or unreliability of the data is of a technical nature which

2 does not adversely affect the determination of the level of

3 the State’s performance.’’.

4 (2) CONFORMING AMENDMENTS.—

5 (A) PAYMENTS TO STATES.—Section 403

6 (42 U.S.C. 603) is amended by striking sub7 section (h).

8 (B) DUTIES OF SECRETARY.—Subsections

9 (d)(3)(A), (g)(1), and (g)(3)(A) of section 452

10 (42 U.S.C. 652) are each amended by striking

11 ‘‘403(h)’’ and inserting ‘‘455(e)’’.

12 (f) EFFECTIVE DATES.—

13 (1) INCENTIVE ADJUSTMENTS.—

14 (A) IN GENERAL.—The amendments made

15 by subsections (a), (b), and (c) shall become ef16 fective on October 1, 1997, except to the extent

17 provided in subparagraph (B).

18 (B) EXCEPTION.—Section 458 of the So19 cial Security Act, as in effect prior to the enact20 ment of this section, shall be effective for pur21 poses of incentive payments to States for fiscal

22 years prior to fiscal year 1999.

23 (2) PENALTY REDUCTIONS.—

24 (A) IN GENERAL.—The amendments made

25 by subsection (d) shall become effective with re-
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1 spect to calendar quarters beginning on and

2 after the date of the enactment of this Act.

3 (B) REDUCTIONS.—The amendments

4 made by subsection (e) shall become effective

5 with respect to calendar quarters beginning on

6 and after the date which is 1 year after the

7 date of the enactment of this Act.

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

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

10 U.S.C. 654) is amended—

11 (1) in paragraph (14)—

12 (A) by striking ‘‘(14)’’ and inserting

13 ‘‘(14)(A)’’; and

14 (B) by inserting after the semicolon ‘‘and’’;

15 (2) by redesignating paragraph (15) as sub16 paragraph (B) of paragraph (14); and

17 (3) by inserting after paragraph (14) the fol18 lowing new paragraph:

19 ‘‘(15) provide for—

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

21 reports to the Secretary on the State program

22 under this part—

23 ‘‘(i) which shall include such informa24 tion as may be necessary to measure State

25 compliance with Federal requirements for
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1 expedited procedures and timely case proc2 essing, using such standards and proce3 dures as are required by the Secretary;

4 and

5 ‘‘(ii) under which the State agency

6 will determine the extent to which such

7 program is in conformity with applicable

8 requirements with respect to the operation

9 of State programs under this part (includ10 ing the status of complaints filed under the

11 procedure required under paragraph

12 (12)(B)); and

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

14 State automated data processing system and

15 transmitting to the Secretary data and calcula16 tions concerning the levels of accomplishment

17 (and rates of improvement) with respect to ap18 plicable performance indicators (including IV–D

19 paternity establishment percentages and overall

20 performance in child support enforcement) to

21 the extent necessary for purposes of sections

22 452(g) and 458.’’.

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

24 U.S.C. 652(a)(4)) is amended to read as follows:
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1 ‘‘(4)(A) review data and calculations transmit2 ted by State agencies pursuant to section

3 454(15)(B) on State program accomplishments with

4 respect to performance indicators for purposes of

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

6 (if any) of penalty reductions pursuant to section

7 455(e) to be applied to the State;

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

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

10 conformity with Federal requirements; evaluate any

11 elements of a State program in which significant de12 ficiencies are indicated by such report on the status

13 of complaints under the State procedure under sec14 tion 454(12)(B); and, as appropriate, provide to the

15 State agency comments, recommendations for addi16 tional or alternative corrective actions, and technical

17 assistance; and

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

19 government auditing standards of the United States

20 Comptroller General—

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

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

23 meet requirements of this part, or of regula24 tions implementing such requirements, concern25 ing performance standards and reliability of
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1 program data) to assess the completeness, reli2 ability, and security of the data, and the accu3 racy of the reporting systems, used for the cal4 culations of performance indicators specified in

5 subsection (g) and section 458;

6 ‘‘(ii) of the adequacy of financial manage7 ment of the State program, including assess8 ments of—

9 ‘‘(I) whether Federal and other funds

10 made available to carry out the State pro11 gram under this part are being appro12 priately expended, and are properly and

13 fully accounted for; and

14 ‘‘(II) whether collections and disburse15 ments of support payments and program

16 income are carried out correctly and are

17 properly and fully accounted for; and

18 ‘‘(iii) for such other purposes as the Sec19 retary may find necessary;’’.

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

21 this section shall be effective with respect to calendar

22 quarters beginning on or after the date which is 1 year

23 after the enactment of this section.
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1 SEC. 314. REQUIRED REPORTING PROCEDURES.

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

3 652(a)(5)) is amended by inserting ‘‘, and establish proce4 dures to be followed by States for collecting and reporting

5 information required to be provided under this part, and

6 establish uniform definitions (including those necessary to

7 enable the measurement of State compliance with the re8 quirements of this part relating to expedited processes and

9 timely case processing) to be applied in following such pro10 cedures’’ before the semicolon.

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

12 U.S.C. 654), as amended by sections 301(a) and 305(a),

13 is amended—

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

15 (25);

16 (2) by striking the period at the end of para17 graph (26) and inserting ‘‘; and’’; and

18 (3) by adding after paragraph (26) the follow19 ing:

20 ‘‘(27) provide that the State shall use the defi21 nitions established under section 452(a)(5) in col22 lecting and reporting information as required under

23 this part.’’.

24 SEC. 315. AUTOMATED DATA PROCESSING REQUIREMENTS.

25 (a) REVISED REQUIREMENTS.—
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1 (1) STATE PLAN.—Section 454(16) (42 U.S.C.

2 654(16)) is amended—

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

4 State,’’;

5 (B) by inserting ‘‘and operation by the

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

7 (C) by inserting ‘‘meeting the requirements

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

9 system’’;

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

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

12 (E) by striking ‘‘(i)’’; and

13 (F) by striking ‘‘(including, but not limited

14 to,’’ and all that follows and to the semicolon.

15 (2) AUTOMATED DATA PROCESSING.—Part D of

16 title IV (42 U.S.C. 651–669) is amended by insert17 ing after section 454 the following new section:

18 ‘‘AUTOMATED DATA PROCESSING

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

20 requirements of this section, for purposes of the require21 ment of section 454(16), a State agency shall have in op22 eration a single statewide automated data processing and

23 information retrieval system which has the capability to

24 perform the tasks specified in this section, and performs

25 such tasks with the frequency and in the manner specified
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1 in this part or in regulations or guidelines of the Sec2 retary.

3 ‘‘(b) PROGRAM MANAGEMENT.—The automated sys4 tem required under this section shall perform such func5 tions as the Secretary may specify relating to management

6 of the program under this part, including—

7 ‘‘(1) controlling and accounting for use of Fed8 eral, State, and local funds to carry out such pro9 gram; and

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

11 Federal reporting requirements on a timely basis.

12 ‘‘(c) CALCULATION OF PERFORMANCE INDICA13 TORS.—In order to enable the Secretary to determine the

14 incentive and penalty adjustments required by sections

15 452(g) and 458, the State agency shall—

16 ‘‘(1) use the automated system—

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

18 State performance with respect to paternity es19 tablishment and child support enforcement in

20 the State; and

21 ‘‘(B) to calculate the IV–D paternity es22 tablishment percentage and overall performance

23 in child support enforcement for the State for

24 each fiscal year; and
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1 ‘‘(2) have in place systems controls to ensure

2 the completeness, and reliability of, and ready access

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

4 accuracy of the calculations described in paragraph

5 (1)(B).

6 ‘‘(d) INFORMATION INTEGRITY AND SECURITY.—The

7 State agency shall have in effect safeguards on the integ8 rity, accuracy, and completeness of, access to, and use of

9 data in the automated system required under this section,

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

11 safeguards as the Secretary specifies in regulations):

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

13 policies concerning access to data by State agency

14 personnel, and sharing of data with other persons,

15 which—

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

17 to the extent necessary to carry out program re18 sponsibilities;

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

20 for particular program purposes, and the per21 sonnel permitted access to such data; and

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

23 for a limited program purpose is not used or

24 redisclosed for another, impermissible purpose.
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1 ‘‘(2) SYSTEMS CONTROLS.—Systems controls

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

3 strict adherence to the policies specified under para4 graph (1).

5 ‘‘(3) MONITORING OF ACCESS.—Routine mon6 itoring of access to and use of the automated sys7 tem, through methods such as audit trails and feed8 back mechanisms, to guard against and promptly

9 identify unauthorized access or use.

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

11 agency shall have in effect procedures to ensure that

12 all personnel (including State and local agency staff

13 and contractors) who may have access to or be re14 quired to use sensitive or confidential program data

15 are fully informed of applicable requirements and

16 penalties, and are adequately trained in security pro17 cedures.

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

19 in effect administrative penalties (up to and includ20 ing dismissal from employment) for unauthorized ac21 cess to, or disclosure or use of, confidential data.’’.

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

23 652) is amended by adding at the end the following

24 new subsection:
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1 ‘‘(j) The Secretary shall prescribe final regulations

2 for implementation of the requirements of section 454A

3 not later than 2 years after the date of the enactment of

4 this subsection.’’.

5 (4) IMPLEMENTATION TIMETABLE.—Section

6 454(24) (42 U.S.C. 654(24)), as amended by sec7 tions 301(a), 305(a)(2) and 314(b)(1), is amended

8 to read as follows:

9 ‘‘(24) provide that the State will have in effect

10 an automated data processing and information re11 trieval system—

12 ‘‘(A) by October 1, 1996, meeting all re13 quirements of this part which were enacted on

14 or before the date of the enactment of the Fam15 ily Support Act of 1988; and

16 ‘‘(B) by October 1, 1999, meeting all re17 quirements of this part enacted on or before the

18 date of the enactment of the Interstate Child

19 Support Responsibility Act of 1995 (but this

20 provision shall not be construed to alter earlier

21 deadlines specified for elements of such sys22 tem), except that such deadline shall be ex23 tended by 1 day for each day (if any) by which

24 the Secretary fails to meet the deadline imposed

25 by section 452(j);’’.
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1 (b) SPECIAL FEDERAL MATCHING RATE FOR DE2 VELOPMENT COSTS OF AUTOMATED SYSTEMS.—Section

3 455(a) (42 U.S.C. 655(a)) is amended—

4 (1) in paragraph (1)(B)—

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

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

7 (B) by striking ‘‘so much of’’; and

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

9 all that follows through ‘‘thereof’’; and

10 (2) by adding at the end the following new

11 paragraph:

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

13 each quarter in fiscal years 1996 through 2001, the per14 centage specified in subparagraph (B) of so much of State

15 expenditures described in paragraph (1)(B) as the Sec16 retary finds are for a system meeting the requirements

17 specified in section 454(16) and 454A, subject to subpara18 graph (C).

19 ‘‘(B) The percentage specified in this subparagraph,

20 for purposes of subparagraph (A), is the higher of—

21 ‘‘(i) 80 percent, or

22 ‘‘(ii) the percentage otherwise applicable to

23 Federal payments to the State under paragraph

24 (1)(A) (as adjusted pursuant to section 458).
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1 ‘‘(C)(i) The Secretary may not pay more than

2 $260,000,000 in the aggregate under this paragraph for

3 fiscal years 1996, 1997, 1998, 1999, 2000, and 2001.

4 ‘‘(ii) The total amount payable to a State under this

5 paragraph for fiscal years 1996, 1997, 1998, 1999, 2000,

6 and 2001 shall not exceed the limitation determined for

7 the State by the Secretary in regulations.

8 ‘‘(iii) The regulations referred to in clause (ii) shall

9 prescribe a formula for allocating the amount specified in

10 clause (iii) among States with plans approved under this

11 part, which shall take into account—

12 ‘‘(I) the relative size of State caseloads under

13 this part; and

14 ‘‘(II) the level of automation needed to meet the

15 automated data processing requirements of this

16 part.’’.

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

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

19 Law 100–485) is repealed.

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

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

22 U.S.C. 652(a)) is amended in the matter preceding para23 graph (1) by striking ‘‘directly’’.

24 (b) STAFFING STUDIES.—
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1 (1) SCOPE.—The Secretary of Health and

2 Human Services (in this subsection referred to as

3 the ‘‘Secretary’’) shall, directly or by contract, con4 duct studies of the staffing of each State child sup5 port enforcement program under part D of title IV

6 of the Social Security Act. Such studies shall—

7 (A) include a review of the staffing needs

8 created by requirements for automated data

9 processing, maintenance of a central case reg10 istry and centralized collections of child sup11 port, and of changes in these needs resulting

12 from changes in such requirements; and

13 (B) examine and report on effective staff14 ing practices used by the States and on rec15 ommended staffing procedures.

16 (2) FREQUENCY OF STUDIES.—The Secretary

17 shall complete the first staffing study required under

18 paragraph (1) not later than October 1, 1997, and

19 may conduct additional studies subsequently at ap20 propriate intervals.

21 (3) REPORT TO THE CONGRESS.—The Sec22 retary shall submit a report to the Congress stating

23 the findings and conclusions of each study conducted

24 under this subsection.
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1 SEC. 317. FUNDING FOR SECRETARIAL ASSISTANCE TO

2 STATE PROGRAMS.

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

4 315(a)(3), is amended by adding at the end the following

5 new subsection:

6 ‘‘(k)(1) There shall be available to the Secretary,

7 from amounts appropriated for fiscal year 1996 and each

8 succeeding fiscal year for payments to States under this

9 part, the amount specified in paragraph (2) for the costs

10 to the Secretary for—

11 ‘‘(A) information dissemination and technical

12 assistance to States, training of State and Federal

13 staff, staffing studies, and related activities needed

14 to improve programs (including technical assistance

15 concerning State automated systems);

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

17 projects of regional or national significance relating

18 to the operation of State programs under this part;

19 and

20 ‘‘(C) operation of the Federal Parent Locator

21 Service under section 453, to the extent such costs

22 are not recovered through user fees.

23 ‘‘(2) The amount specified in this paragraph for a

24 fiscal year is the amount equal to a percentage of the re25 duction in Federal payments to States under part A on

26 account of child support (including arrearages) collected
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1 in the preceding fiscal year on behalf of children receiving

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

3 determined on the basis of the most recent reliable data

4 available to the Secretary as of the end of the third cal5 endar quarter following the end of such preceding fiscal

6 year), equal to—

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

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

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

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

11 SEC. 318. DATA COLLECTION AND REPORTS BY THE SEC12 RETARY.

13 (a) ANNUAL REPORT TO CONGRESS.—

14 (1) IN GENERAL.—Section 452(a)(10)(A) (42

15 U.S.C. 652(a)(10)(A)) is amended—

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

17 ‘‘this part, including—’’; and

18 (B) by adding at the end the following in19 dented clauses:

20 ‘‘(i) the total amount of child support

21 payments collected as a result of services

22 furnished during such fiscal year to indi23 viduals receiving services under this part;
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1 ‘‘(ii) the cost to the States and to the

2 Federal Government of furnishing such

3 services to those individuals; and

4 ‘‘(iii) the number of cases involving

5 families—

6 ‘‘(I) who became ineligible for aid

7 under part A during a month in such

8 fiscal year; and

9 ‘‘(II) with respect to whom a

10 child support payment was received in

11 the same month;’’.

12 (2) CERTAIN DATA.—Section 452(a)(10)(C) (42

13 U.S.C. 652(a)(10)(C)) is amended—

14 (A) in the matter preceding clause (i), by

15 striking ‘‘with the data required under each

16 clause being separately stated for cases’’ and all

17 that follows through ‘‘part:’’ and inserting ‘‘sep18 arately stated for cases where the child is re19 ceiving aid to families with dependent children

20 (or foster care maintenance payments under

21 part E), or formerly received such aid or pay22 ments and the State is continuing to collect

23 support assigned to it under section 402(a)(26),

24 471(a)(17), or 1912, and all other cases under

25 this part—’’;
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1 (B) in each of clauses (i) and (ii), by strik2 ing ‘‘, and the total amount of such obliga3 tions’’;

4 (C) in clause (iii), by striking ‘‘described

5 in’’ and all that follows through the semicolon

6 and inserting ‘‘in which support was collected

7 during the fiscal year;’’;

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

9 (E) by redesignating clause (v) as clause

10 (vii), and inserting after clause (iii) the follow11 ing new clauses:

12 ‘‘(iv) the total amount of support col13 lected during such fiscal year and distrib14 uted as current support;

15 ‘‘(v) the total amount of support col16 lected during such fiscal year and distrib17 uted as arrearages;

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

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

20 (3) USE OF FEDERAL COURTS.—Section

21 452(a)(10)(G) (42 U.S.C. 652(a)(10)(G)) is amend22 ed by striking ‘‘on the use of Federal courts and’’.

23 (4) ADDITIONAL INFORMATION NOT NEC24 ESSARY.—Section 452(a)(10) (42 U.S.C.
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1 652(a)(10)) is amended by striking all that follows

2 subparagraph (I).

3 (b) DATA COLLECTION AND REPORTING.—Section

4 469 (42 U.S.C. 669) is amended—

5 (1) by striking subsections (a) and (b) and in6 serting the following:

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

8 fiscal year basis, up-to-date statistics, by State, with re9 spect to services to establish paternity and services to es10 tablish child support obligations, the data specified in sub11 section (b), separately stated, in the case of each such

12 service, with respect to—

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

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

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

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

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

18 State agency administering the plan under this part

19 in which such service is needed; and

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

21 service has been provided.’’; and

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

23 inserting ‘‘(b)(2)’’.
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1 (c) EFFECTIVE DATE.—The amendments made by

2 this section shall be effective with respect to fiscal year

3 1996 and succeeding fiscal years.

4 PART III—LOCATE AND CASE TRACKING

5 SEC. 321. CENTRAL STATE AND CASE REGISTRY.

6 Section 454A, as added by section 315(a)(2), is

7 amended by adding at the end the following new sub8 sections:

9 ‘‘(e) CENTRAL CASE REGISTRY.—

10 ‘‘(1) IN GENERAL.—The automated system re11 quired under this section shall perform the func12 tions, in accordance with the provisions of this sub13 section, of a single central registry containing

14 records with respect to each case in which services

15 are being provided by the State agency (including,

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

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

18 elements (such as names, social security numbers or

19 other uniform identification numbers, dates of birth,

20 and case identification numbers), and containing

21 such other information (such as information on case

22 status) as the Secretary may require.

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

24 the central registry shall include a record of—
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1 ‘‘(A) the amount of monthly (or other peri2 odic) support owed under the support order,

3 and other amounts due or overdue (including

4 arrearages, interest or late payment penalties,

5 and fees);

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

7 collected (including such amounts as fees, late

8 payment penalties, and interest on arrearages);

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

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

12 the child support order is entered.

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

14 agency shall promptly establish and maintain, and

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

17 ‘‘(A) information on administrative actions

18 and administrative and judicial proceedings and

19 orders relating to paternity and support;

20 ‘‘(B) information obtained from matches

21 with Federal, State, or local data sources;

22 ‘‘(C) information on support collections

23 and distributions; and

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

2 INFORMATION.—The automated system required under

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

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

5 standardized format or formats, as may be required by

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

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

10 or Federal agencies) to carry out responsibilities under

11 this part. Data matching activities of the State agency

12 shall include at least the following:

13 ‘‘(1) DATA BANK OF CHILD SUPPORT OR14 DERS.—Furnishing to the Data Bank of Child Sup15 port Orders established under section 453(h) (and

16 updating as necessary, with information, including

17 notice of expiration of orders) minimal information

18 specified by the Secretary on each child support case

19 in the central case registry.

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

21 Exchanging data with the Federal Parent Locator

22 Service for the purposes specified in section 453.

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

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

3 and under such programs.

4 ‘‘(4) INTRA- AND INTERSTATE DATA

5 MATCHES.—Exchanging data with other agencies of

6 the State, agencies of other States, and interstate

7 information networks, as necessary and appropriate

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

9 purposes of this part.’’.

10 SEC. 322. CENTRALIZED COLLECTION AND DISBURSEMENT

11 OF SUPPORT PAYMENTS.

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

13 U.S.C. 654), as amended by sections 301(a), 305(a) and

14 314(b), is amended—

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

16 (26);

17 (2) by striking the period at the end of para18 graph (27) and inserting ‘‘; and’’; and

19 (3) by adding after paragraph (27) the follow20 ing new paragraph:

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

22 after October 1, 1998—

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

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

2 part, in accordance with section 454B; and

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

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

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

10 to impose, as appropriate in particular cases,

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

13 (b) ESTABLISHMENT OF CENTRALIZED COLLECTION

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

16 ‘‘CENTRALIZED COLLECTION AND DISBURSEMENT OF

17 SUPPORT PAYMENTS

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

19 requirement of section 454(28), the State agency must op20 erate a single, centralized, automated unit for the collec21 tion and disbursement of support payments, coordinated

22 with the automated data system required under section

23 454A, in accordance with the provisions of this section,

24 which shall be—

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

26 by 2 or more State agencies under a regional cooper-
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1 ative agreement), or by a single contractor respon2 sible directly to the State agency; and

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

4 (including interstate collection and disbursement) of

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

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

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

12 procedures—

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

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

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

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

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

21 timely information on the current status of support

22 payments.’’.

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

24 added by section 315(a)(2) and as amended by section
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1 321, is amended by adding at the end the following new

2 subsection:

3 ‘‘(g) CENTRALIZED COLLECTION AND DISTRIBUTION

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

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

8 collections unit operated pursuant to section 454B,

9 through the performance of functions including at a mini10 mum—

11 ‘‘(1) generation of orders and notices to em12 ployers (and other debtors) for the withholding of

13 wages (and other income)—

14 ‘‘(A) within 2 working days after receipt

15 (from the directory of New Hires established

16 under section 453(i) or any other source) of no17 tice of and the income source subject to such

18 withholding; and

19 ‘‘(B) using uniform formats directed by

20 the Secretary;

21 ‘‘(2) ongoing monitoring to promptly identify

22 failures to make timely payment; and

23 ‘‘(3) automatic use of enforcement mechanisms

24 (including mechanisms authorized pursuant to sec25 tion 466(c)) where payments are not timely made.’’.
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1 (d) EFFECTIVE DATE.—The amendments made by

2 this section shall become effective on October 1, 1998.

3 SEC. 323. AMENDMENTS CONCERNING INCOME WITHHOLD4 ING.

5 (a) MANDATORY INCOME WITHHOLDING.—

6 (1) FROM WAGES.—Section 466(a)(1) (42

7 U.S.C. 666(a)(1)) is amended to read as follows:

8 ‘‘(1)(A) Procedures described in subsection (b)

9 for the withholding from income of amounts payable

10 as support in cases subject to enforcement under the

11 State plan.

12 ‘‘(B) Procedures under which all child support

13 orders issued (or modified) before October 1, 1996,

14 and which are not otherwise subject to withholding

15 under subsection (b), shall become subject to with16 holding from wages as provided in subsection (b) if

17 arrearages occur, without the need for a judicial or

18 administrative hearing.’’.

19 (2) REPEAL OF CERTAIN PROVISIONS CONCERN20 ING ARREARAGES.—Section 466(a)(8) (42 U.S.C.

21 666(a)(8)) is repealed.

22 (3) PROCEDURES DESCRIBED.—Section 466(b)

23 (42 U.S.C. 666(b)) is amended—
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1 (A) in the matter preceding paragraph (1),

2 by striking ‘‘subsection (a)(1)’’ and inserting

3 ‘‘subsection (a)(1)(A)’’;

4 (B) in paragraph (5), by striking ‘‘a public

5 agency’’ and all that follows through the period

6 and inserting ‘‘the State through the central7 ized collections unit established pursuant to sec8 tion 454B, in accordance with the requirements

9 of such section 454B.’’;

10 (C) in paragraph (6)(A)(i)—

11 (i) by inserting ‘‘, in accordance with

12 timetables established by the Secretary,’’

13 after ‘‘must be required’’; and

14 (ii) by striking ‘‘to the appropriate

15 agency’’ and all that follows through the

16 period and inserting ‘‘to the State central17 ized collections unit within 5 working days

18 after the date such amount would (but for

19 this subsection) have been paid or credited

20 to the employee, for distribution in accord21 ance with this part.’’;

22 (D) in paragraph (6)(A)(ii), by inserting

23 ‘‘be in a standard format prescribed by the Sec24 retary, and’’ after ‘‘shall’’; and

25 (E) in paragraph (6)(D) to read as follows:
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1 ‘‘(D) Provision must be made for the imposition

2 of a fine against any employer who—

3 ‘‘(i) discharges from employment, refuses

4 to employ, or takes disciplinary action against

5 any absent parent subject to wage withholding

6 required by this subsection because of the exist7 ence of such withholding and the obligations or

8 additional obligations which it imposes upon the

9 employer; or

10 ‘‘(ii) fails to withhold support from wages,

11 or to pay such amounts to the State centralized

12 collections unit in accordance with this sub13 section.’’.

14 (b) CONFORMING AMENDMENT.—Section 466(c) (42

15 U.S.C. 666(c)) is repealed.

16 (c) DEFINITION OF TERMS.—The Secretary of

17 Health and Human Services shall promulgate regulations

18 providing definitions, for purposes of part D of title IV

19 of the Social Security Act, for the term ‘‘income’’ and for

20 such other terms relating to income withholding under sec21 tion 466(b) of such Act as the Secretary may find it nec22 essary or advisable to define.
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1 SEC. 324. LOCATOR INFORMATION FROM INTERSTATE NET2 WORKS.

3 Section 466(a) (42 U.S.C. 666(a)), as amended by

4 section 323(a)(2), is amended by inserting after para5 graph (7) the following new paragraph:

6 ‘‘(8) Procedures ensuring that the State will

7 neither provide funding for, nor use for any purpose

8 (including any purpose unrelated to the purposes of

9 this part), any automated interstate network or sys10 tem used to locate individuals—

11 ‘‘(A) for purposes relating to the use of

12 motor vehicles; or

13 ‘‘(B) providing information for law en14 forcement purposes (where child support en15 forcement agencies are otherwise allowed access

16 by State and Federal law),

17 unless all Federal and State agencies administering

18 programs under this part (including the entities es19 tablished under section 453) have access to informa20 tion in such system or network to the same extent

21 as any other user of such system or network.’’.

22 SEC. 325. EXPANDED FEDERAL PARENT LOCATOR SERVICE.

23 (a) EXPANDED AUTHORITY TO LOCATE INDIVID24 UALS AND ASSETS.—Section 453 (42 U.S.C. 653) is

25 amended—
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1 (1) in subsection (a), by striking ‘‘information

2 as to the whereabouts’’ and all that follows through

3 the period and inserting ‘‘, for the purpose of estab4 lishing parentage, establishing, setting the amount

5 of, modifying, or enforcing child support obliga6 tions—

7 ‘‘(1) information on, or facilitating the discov8 ery of, the location of any individual—

9 ‘‘(A) who is under an obligation to pay

10 child support;

11 ‘‘(B) against whom such an obligation is

12 sought; or

13 ‘‘(C) to whom such an obligation is owed,

14 including such individual’s social security number

15 (or numbers), most recent residential address, and

16 the name, address, and employer identification num17 ber of such individual’s employer; and

18 ‘‘(2) information on the individual’s wages (or

19 other income) from, and benefits of, employment (in20 cluding rights to or enrollment in group health care

21 coverage); and

22 ‘‘(3) information on the type, status, location,

23 and amount of any assets of, or debts owed by or

24 to, any such individual.’’;

25 (2) in subsection (b)—
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1 (A) in the matter preceding paragraph (1),

2 by striking ‘‘social security’’ and all that follows

3 through ‘‘absent parent’’ and inserting ‘‘infor4 mation specified in subsection (a)’’; and

5 (B) in paragraph (2), by inserting before

6 the period ‘‘, or from any consumer reporting

7 agency (as defined in section 603(f) of the Fair

8 Credit Reporting Act (15 U.S.C. 1681a(f))’’;

9 and

10 (3) in subsection (e)(1), by inserting before the

11 period ‘‘, or by consumer reporting agencies’’.

12 (b) REIMBURSEMENT FOR DATA FROM FEDERAL

13 AGENCIES.—Section 453(e)(2) (42 U.S.C. 653(e)(2)) is

14 amended in the fourth sentence by inserting before the

15 period ‘‘in an amount which the Secretary determines to

16 be reasonable payment for the data exchange (which

17 amount shall not include payment for the costs of obtain18 ing, compiling, or maintaining the data)’’.

19 (c) ACCESS TO CONSUMER REPORTS UNDER FAIR

20 CREDIT REPORTING ACT.—

21 (1) IN GENERAL.—Section 608 of the Fair

22 Credit Reporting Act (15 U.S.C. 1681f) is amend23 ed—

24 (A) by striking ‘‘, limited to’’ and inserting

25 ‘‘to a governmental agency (including the entire
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1 consumer report, in the case of a Federal,

2 State, or local agency administering a program

3 under part D of title IV of the Social Security

4 Act, and limited to’’; and

5 (B) by striking ‘‘employment, to a govern6 mental agency’’ and inserting ‘‘employment, in

7 the case of any other governmental agency)’’.

8 (2) REIMBURSEMENT FOR REPORTS BY STATE

9 AGENCIES AND CREDIT BUREAUS.—Section 453 (42

10 U.S.C. 653) is amended by adding at the end the

11 following new subsection:

12 ‘‘(g) The Secretary is authorized to reimburse to

13 State agencies and consumer credit reporting agencies the

14 costs incurred by such entities in furnishing information

15 requested by the Secretary pursuant to this section in an

16 amount which the Secretary determines to be reasonable

17 payment for the data exchange (which amount shall not

18 include payment for the costs of obtaining, compiling, or

19 maintaining the data).’’.

20 (d) TECHNICAL AMENDMENTS.—

21 (1) Sections 452(a)(9), 453(a), 453(b), 463(a),

22 and 463(e) (42 U.S.C. 652(a)(9), 653(a), 653(b),

23 663(a), and 663(e)) are each amended by inserting

24 ‘‘Federal’’ before ‘‘Parent’’ each place it appears.
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1 (2) Section 453 (42 U.S.C. 653) is amended in

2 the heading by inserting ‘‘FEDERAL’’ before ‘‘PAR3 ENT’’.

4 (e) NEW COMPONENTS.—Section 453 (42 U.S.C.

5 653), as amended by subsection (c)(2), is amended by add6 ing at the end the following new subsections:

7 ‘‘(h) DATA BANK OF CHILD SUPPORT ORDERS.—

8 ‘‘(1) IN GENERAL.—Not later than October 1,

9 1998, in order to assist States in administering their

10 State plans under this part and parts A, F, and G,

11 and for the other purposes specified in this section,

12 the Secretary shall establish and maintain in the

13 Federal Parent Locator Service an automated reg14 istry to be known as the Data Bank of Child Sup15 port Orders, which shall contain abstracts of child

16 support orders and other information described in

17 paragraph (2) on each case in each State central

18 case registry maintained pursuant to section

19 454A(e), as furnished (and regularly updated), pur20 suant to section 454A(f), by State agencies admin21 istering programs under this part.

22 ‘‘(2) CASE INFORMATION.—The information re23 ferred to in paragraph (1), as specified by the Sec24 retary, shall include sufficient information (including

25 names, social security numbers or other uniform
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1 identification numbers, and State case identification

2 numbers) to identify the individuals who owe or are

3 owed support (or with respect to or on behalf of

4 whom support obligations are sought to be estab5 lished), and the State or States which have estab6 lished or modified, or are enforcing or seeking to es7 tablish, such an order.

8 ‘‘(i) DIRECTORY OF NEW HIRES.—

9 ‘‘(1) IN GENERAL.—Not later than October 1,

10 1998, in order to assist States in administering their

11 State plans under this part and parts A, F, and G,

12 and for the other purposes specified in this section,

13 the Secretary shall establish and maintain in the

14 Federal Parent Locator Service an automated direc15 tory to be known as the directory of New Hires, con16 taining—

17 ‘‘(A) information supplied by employers on

18 each newly hired individual, in accordance with

19 paragraph (2); and

20 ‘‘(B) information supplied by State agen21 cies administering State unemployment com22 pensation laws, in accordance with paragraph

23 (3).

24 ‘‘(2) EMPLOYER INFORMATION.—
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1 ‘‘(A) INFORMATION REQUIRED.—Subject

2 to subparagraph (D), each employer shall fur3 nish to the Secretary, for inclusion in the direc4 tory under this subsection, not later than 10

5 days after the date (on or after October 1,

6 1998) on which the employer hires a new em7 ployee (as defined in subparagraph (C)), a re8 port containing the name, date of birth, and so9 cial security number of such employee, and the

10 employer identification number of the employer.

11 ‘‘(B) REPORTING METHOD AND FOR12 MAT.—The Secretary shall provide for trans13 mission of the reports required under subpara14 graph (A) using formats and methods which

15 minimize the burden on employers, which shall

16 include—

17 ‘‘(i) automated or electronic trans18 mission of such reports;

19 ‘‘(ii) transmission by regular mail;

20 and

21 ‘‘(iii) transmission of a copy of the

22 form required for purposes of compliance

23 with section 3402 of the Internal Revenue

24 Code of 1986.
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1 ‘‘(C) EMPLOYEE DEFINED.—For purposes

2 of this paragraph, the term ‘employee’ means

3 any individual subject to the requirement of

4 section 3402(f)(2) of the Internal Revenue Code

5 of 1986.

6 ‘‘(D) PAPERWORK REDUCTION REQUIRE7 MENT.—As required by the information re8 sources management policies published by the

9 Director of the Office of Management and

10 Budget pursuant to section 3504(b)(1) of title

11 44, United States Code, the Secretary, in order

12 to minimize the cost and reporting burden on

13 employers, shall not require reporting pursuant

14 to this paragraph if an alternative reporting

15 mechanism can be developed that either relies

16 on existing Federal or State reporting or en17 ables the Secretary to collect the needed infor18 mation in a more cost-effective and equally ex19 peditious manner, taking into account the re20 porting costs on employers.

21 ‘‘(E) CIVIL MONEY PENALTY ON NON22 COMPLYING EMPLOYERS.—

23 ‘‘(i) IN GENERAL.—Any employer that

24 fails to make a timely report in accordance

25 with this paragraph with respect to an in-
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1 dividual shall be subject to a civil money

2 penalty, for each calendar year in which

3 the failure occurs, of the lesser of $500 or

4 1 percent of the wages or other compensa5 tion paid by such employer to such individ6 ual during such calendar year.

7 ‘‘(ii) APPLICATION OF SECTION

8 1128A.—Subject to clause (iii), the provi9 sions of section 1128A (other than sub10 sections (a) and (b) thereof) shall apply to

11 a civil money penalty under clause (i) in

12 the same manner as they apply to a civil

13 money penalty or proceeding under section

14 1128A(a).

15 ‘‘(iii) COSTS TO SECRETARY.—Any

16 employer with respect to whom a penalty

17 under this subparagraph is upheld after an

18 administrative hearing shall be liable to

19 pay all costs of the Secretary with respect

20 to such hearing.

21 ‘‘(3) EMPLOYMENT SECURITY INFORMATION.—

22 ‘‘(A) REPORTING REQUIREMENT.—Each

23 State agency administering a State unemploy24 ment compensation law approved by the Sec25 retary of Labor under the Federal Unemploy-
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1 ment Tax Act shall furnish to the Secretary ex2 tracts of the reports to the Secretary of Labor

3 concerning the wages and unemployment com4 pensation paid to individuals required under

5 section 303(a)(6), in accordance with subpara6 graph (B).

7 ‘‘(B) MANNER OF COMPLIANCE.—The ex8 tracts required under subparagraph (A) shall be

9 furnished to the Secretary on a quarterly basis,

10 with respect to calendar quarters beginning on

11 and after October 1, 1996, by such dates, in

12 such format, and containing such information

13 as required by that Secretary in regulations.

14 ‘‘(j) DATA MATCHES AND OTHER DISCLOSURES.—

15 ‘‘(1) VERIFICATION BY SOCIAL SECURITY

16 ADMINISTRATION.—

17 ‘‘(A) TRANSMISSION OF DATA.—The Sec18 retary shall transmit data on individuals and

19 employers in the registries maintained under

20 this section to the Social Security Administra21 tion to the extent necessary for verification in

22 accordance with subparagraph (B).

23 ‘‘(B) VERIFICATION.—The Commissioner of So24 cial Security shall verify the accuracy of, correct or

25 supply to the extent necessary and feasible, and re-
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1 port to the Secretary, the following information in

2 data supplied by the Secretary pursuant to subpara3 graph (A):

4 ‘‘(i) the name, social security number,

5 and birth date of each individual; and

6 ‘‘(ii) the employer identification num7 ber of each employer.

8 ‘‘(2) CHILD SUPPORT LOCATOR MATCHES.—For

9 the purpose of locating individuals for purposes of

10 paternity establishment and establishment and en11 forcement of child support, the Secretary shall—

12 ‘‘(A) match data in the directory of New

13 Hires against the child support order abstracts

14 in the Data Bank of Child Support Orders not

15 less than every 2 working days; and

16 ‘‘(B) report information obtained from a

17 match established under subparagraph (A) to

18 concerned State agencies operating programs

19 under this part not later than 2 working days

20 after such match.

21 ‘‘(3) DATA MATCHES AND DISCLOSURES OF

22 DATA IN ALL REGISTRIES FOR TITLE IV PROGRAM

23 PURPOSES.—The Secretary shall—

24 ‘‘(A) perform matches of data in each com25 ponent of the Federal Parent Locator Service
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1 maintained under this section against data in

2 each other such component (other than the

3 matches required pursuant to paragraph (1)),

4 and report information resulting from such

5 matches to State agencies operating programs

6 under this part and parts A, F, and G; and

7 ‘‘(B) disclose data in such registries to

8 such State agencies,

9 to the extent, and with the frequency, that the Sec10 retary determines to be effective in assisting such

11 States to carry out their responsibilities under such

12 programs.

13 ‘‘(k) FEES.—

14 ‘‘(1) FOR SSA VERIFICATION.—The Secretary

15 shall reimburse the Commissioner of Social Security,

16 at a rate negotiated between the Secretary and the

17 Commissioner, the costs incurred by the Commis18 sioner in performing the verification services speci19 fied in subsection (j).

20 ‘‘(2) FOR INFORMATION FROM SESAS.—The

21 Secretary shall reimburse costs incurred by State

22 employment security agencies in furnishing data as

23 required by subsection (i)(3), at rates which the Sec24 retary determines to be reasonable (which rates shall
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1 not include payment for the costs of obtaining, com2 piling, or maintaining such data).

3 ‘‘(3) FOR INFORMATION FURNISHED TO STATE

4 AND FEDERAL AGENCIES.—State and Federal agen5 cies receiving data or information from the Secretary

6 pursuant to this section shall reimburse the costs in7 curred by the Secretary in furnishing such data or

8 information, at rates which the Secretary determines

9 to be reasonable (which rates shall include payment

10 for the costs of obtaining, verifying, maintaining,

11 and matching such data or information).

12 ‘‘(l) RESTRICTION ON DISCLOSURE AND USE.—Data

13 in the Federal Parent Locator Service, and information

14 resulting from matches using such data, shall not be used

15 or disclosed except as specifically provided in this section.

16 ‘‘(m) RETENTION OF DATA.—Data in the Federal

17 Parent Locator Service, and data resulting from matches

18 performed pursuant to this section, shall be retained for

19 such period (determined by the Secretary) as appropriate

20 for the data uses specified in this section.

21 ‘‘(n) INFORMATION INTEGRITY AND SECURITY.—The

22 Secretary shall establish and implement safeguards with

23 respect to the entities established under this section de24 signed to—
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1 ‘‘(1) ensure the accuracy and completeness of

2 information in the Federal Parent Locator Service;

3 and

4 ‘‘(2) restrict access to confidential information

5 in the Federal Parent Locator Service to authorized

6 persons, and restrict use of such information to au7 thorized purposes.

8 ‘‘(o) LIMIT ON LIABILITY.—The Secretary shall not

9 be liable to either a State or an individual for inaccurate

10 information provided to a component of the Federal Par11 ent Locator Service and disclosed by the Secretary in ac12 cordance with this section.’’.

13 (f) CONFORMING AMENDMENTS.—

14 (1) TO PART D OF TITLE IV OF THE SOCIAL SE15 CURITY ACT.—Section 454(8)(B) (42 U.S.C.

16 654(8)(B)) is amended to read as follows:

17 ‘‘(B) the Federal Parent Locator Service

18 established under section 453;’’.

19 (2) TO FEDERAL UNEMPLOYMENT TAX ACT.—

20 Section 3304(16) of the Internal Revenue Code of

21 1986 (relating to approval of State laws) is amend22 ed—

23 (A) by striking ‘‘Secretary of Health, Edu24 cation, and Welfare’’ each place it appears and
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1 inserting ‘‘Secretary of Health and Human

2 Services’’;

3 (B) in subparagraph (B), by striking

4 ‘‘such information’’ and all that follows through

5 the semicolon and inserting ‘‘information fur6 nished under subparagraph (A) or (B) is used

7 only for the purposes authorized under such

8 subparagraph;’’;

9 (C) by striking ‘‘and’’ at the end of sub10 paragraph (A);

11 (D) by redesignating subparagraph (B) as

12 subparagraph (C); and

13 (E) by inserting after subparagraph (A)

14 the following new subparagraph:

15 ‘‘(B) wage and unemployment compensa16 tion information contained in the records of

17 such agency shall be furnished to the Secretary

18 of Health and Human Services (in accordance

19 with regulations promulgated by such Sec20 retary) as necessary for the purposes of the di21 rectory of New Hires established under section

22 453(i) of the Social Security Act, and’’.

23 (3) TO STATE GRANT PROGRAM UNDER TITLE

24 III OF THE SOCIAL SECURITY ACT.—Section 303(a)

25 (42 U.S.C. 503(a)) is amended—
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1 (A) by striking ‘‘and’’ at the end of para2 graph (8);

3 (B) by striking the period at the end of

4 paragraph (9) and inserting ‘‘; and’’; and

5 (C) by adding after paragraph (9) the fol6 lowing new paragraph:

7 ‘‘(10) The making of quarterly electronic re8 ports, at such dates, in such format, and containing

9 such information, as required by the Secretary under

10 section 453(i)(3), and compliance with such provi11 sions as such Secretary may find necessary to en12 sure the correctness and verification of such re13 ports.’’.

14 SEC. 326. USE OF SOCIAL SECURITY NUMBERS.

15 (a) STATE LAW REQUIREMENT.—Section 466(a) (42

16 U.S.C. 666(a)), as amended by section 302(a), is amended

17 by adding at the end the following new paragraph:

18 ‘‘(13) Procedures requiring the recording of so19 cial security numbers—

20 ‘‘(A) of both parties on marriage licenses

21 and divorce decrees;

22 ‘‘(B) of both parents, on birth records and

23 child support and paternity orders; and

24 ‘‘(C) on all applications for motor vehicle

25 licenses and professional licenses.’’.
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1 (b) CLARIFICATION OF FEDERAL POLICY.—Section

2 205(c)(2)(C)(ii) (42 U.S.C. 405(c)(2)(C)(ii)) is amended

3 by striking the third sentence and inserting ‘‘This clause

4 shall not be considered to authorize disclosure of such

5 numbers except as provided in the preceding sentence.’’.

6 PART IV—STREAMLINING AND UNIFORMITY OF

7 PROCEDURES

8 SEC. 331. ADOPTION OF UNIFORM STATE LAWS.

9 Section 466(a) (42 U.S.C. 666(a)), as amended by

10 sections 302(a) and 326(a), is amended by adding at the

11 end the following new paragraph:

12 ‘‘(14)(A) Procedures under which the State

13 adopts in its entirety (with the modifications and ad14 ditions specified in this paragraph) not later than

15 January 1, 1997, and uses on and after such date,

16 the Uniform Interstate Family Support Act, as ap17 proved by the National Conference of Commissioners

18 on Uniform State Laws in August 1992.

19 ‘‘(B) The State law adopted pursuant to sub20 paragraph (A) shall be applied to any case—

21 ‘‘(i) involving an order established or modi22 fied in one State and for which a subsequent

23 modification is sought in another State; or

24 ‘‘(ii) in which interstate activity is required

25 to enforce an order.
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1 ‘‘(C) The State law adopted pursuant to sub2 paragraph (A) of this paragraph shall contain the

3 following provision in lieu of section 611(a)(1) of the

4 Uniform Interstate Family Support Act described in

5 such subparagraph (A):

6 ‘‘ ‘(1) the following requirements are met:

7 ‘‘ ‘(i) the child, the individual obligee, and

8 the obligor—

9 ‘‘ ‘(I) do not reside in the issuing

10 State; and

11 ‘‘ ‘(II) either reside in this State or

12 are subject to the jurisdiction of this State

13 pursuant to section 201; and

14 ‘‘ ‘(ii) in any case where another State is

15 exercising or seeks to exercise jurisdiction to

16 modify the order, the conditions of section 204

17 are met to the same extent as required for pro18 ceedings to establish orders; or’.

19 ‘‘(D) The State law adopted pursuant to sub20 paragraph (A) shall recognize as valid, for purposes

21 of any proceeding subject to such State law, service

22 of process upon persons in the State (and proof of

23 such service) by any means acceptable in another

24 State which is the initiating or responding State in

25 such proceeding.’’.
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1 SEC. 332. IMPROVEMENTS TO FULL FAITH AND CREDIT

2 FOR CHILD SUPPORT ORDERS.

3 Section 1738B of title 28, United States Code, is

4 amended—

5 (1) in subsection (a)(2), by striking ‘‘subsection

6 (e)’’ and inserting ‘‘subsections (e), (f), and (i)’’;

7 (2) in subsection (b), by inserting after the first

8 undesignated paragraph the following:

9 ‘‘ ‘child’s home State’ means the State in which

10 a child lived with a parent or a person acting as par11 ent for at least 6 consecutive months immediately

12 preceding the time of filing of a petition or com13 parable pleading for support and, if a child is less

14 than 6 months old, the State in which the child lived

15 from birth with any of them. A period of temporary

16 absence of any of them is counted as part of the 6-

17 month period.’’;

18 (3) in subsection (c), by inserting ‘‘by a court

19 of a State’’ before ‘‘is made’’;

20 (4) in subsection (c)(1), by inserting ‘‘and sub21 sections (e), (f), and (g)’’ after ‘‘located’’;

22 (5) in subsection (d)—

23 (A) by inserting ‘‘individual’’ before ‘‘con24 testant’’; and

25 (B) by striking ‘‘subsection (e)’’ and in26 serting ‘‘subsections (e) and (f)’’;
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1 (6) in subsection (e), by striking ‘‘make a modi2 fication of a child support order with respect to a

3 child that is made’’ and inserting ‘‘modify a child

4 support order issued’’;

5 (7) in subsection (e)(1), by inserting ‘‘pursuant

6 to subsection (i)’’ before the semicolon;

7 (8) in subsection (e)(2)—

8 (A) by inserting ‘‘individual’’ before ‘‘con9 testant’’ each place such term appears; and

10 (B) by striking ‘‘to that court’s making the

11 modification and assuming’’ and inserting ‘‘with

12 the State of continuing, exclusive jurisdiction

13 for a court of another State to modify the order

14 and assume’’;

15 (9) by redesignating subsections (f) and (g) as

16 subsections (g) and (h), respectively;

17 (10) by inserting after subsection (e) the follow18 ing new subsection:

19 ‘‘(f) RECOGNITION OF CHILD SUPPORT ORDERS.—

20 If 1 or more child support orders have been issued in this

21 or another State with regard to an obligor and a child,

22 a court shall apply the following rules in determining

23 which order to recognize for purposes of continuing, exclu24 sive jurisdiction and enforcement:
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1 ‘‘(1) If only 1 court has issued a child support

2 order, the order of that court must be recognized.

3 ‘‘(2) If 2 or more courts have issued child sup4 port orders for the same obligor and child, and only

5 1 of the courts would have continuing, exclusive ju6 risdiction under this section, the order of that court

7 must be recognized.

8 ‘‘(3) If 2 or more courts have issued child sup9 port orders for the same obligor and child, and only

10 1 of the courts would have continuing, exclusive ju11 risdiction under this section, an order issued by a

12 court in the current home State of the child must

13 be recognized, but if an order has not been issued

14 in the current home State of the child, the order

15 most recently issued must be recognized.

16 ‘‘(4) If 2 or more courts have issued child sup17 port orders for the same obligor and child, and none

18 of the courts would have continuing, exclusive juris19 diction under this section, a court may issue a child

20 support order, which must be recognized.

21 ‘‘(5) The court that has issued an order recog22 nized under this subsection is the court having con23 tinuing, exclusive jurisdiction.’’;

24 (11) in subsection (g) (as so redesignated)—
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1 (A) by striking ‘‘PRIOR’’ and inserting

2 ‘‘MODIFIED’’; and

3 (B) by striking ‘‘subsection (e)’’ and in4 serting ‘‘subsections (e) and (f)’’;

5 (12) in subsection (h) (as so redesignated)—

6 (A) in paragraph (2), by inserting ‘‘includ7 ing the duration of current payments and other

8 obligations of support’’ before the comma; and

9 (B) in paragraph (3), by inserting ‘‘arrears

10 under’’ after ‘‘enforce’’; and

11 (13) by adding at the end the following new

12 subsection:

13 ‘‘(i) REGISTRATION FOR MODIFICATION.—If there is

14 no individual contestant or child residing in the issuing

15 State, the party or support enforcement agency seeking

16 to modify, or to modify and enforce, a child support order

17 issued in another State shall register that order in a State

18 with jurisdiction over the nonmovant for the purpose of

19 modification.’’.

20 SEC. 333. STATE LAWS PROVIDING EXPEDITED PROCE21 DURES.

22 (a) STATE LAW REQUIREMENTS.—Section 466 (42

23 U.S.C. 666), as amended by section 323(b), is amended—

24 (1) in subsection (a)(2), in the first sentence, to

25 read as follows: ‘‘Expedited administrative and judi-
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1 cial procedures (including the procedures specified in

2 subsection (c)) for establishing paternity and for es3 tablishing, modifying, and enforcing support obliga4 tions.’’; and

5 (2) by adding after subsection (b) the following

6 new subsection:

7 ‘‘(c) The procedures specified in this subsection are

8 the following:

9 ‘‘(1) Procedures which give the State agency

10 the authority (and recognize and enforce the author11 ity of State agencies of other States), without the

12 necessity of obtaining an order from any other judi13 cial or administrative tribunal (but subject to due

14 process safeguards, including (as appropriate) re15 quirements for notice, opportunity to contest the ac16 tion, and opportunity for an appeal on the record to

17 an independent administrative or judicial tribunal),

18 to take the following actions relating to establish19 ment or enforcement of orders:

20 ‘‘(A) To order genetic testing for the pur21 pose of paternity establishment as provided in

22 section 466(a)(5).

23 ‘‘(B) To enter a default order, upon a

24 showing of service of process and any additional

25 showing required by State law—
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1 ‘‘(i) establishing paternity, in the case

2 of any putative father who refuses to sub3 mit to genetic testing; and

4 ‘‘(ii) establishing or modifying a sup5 port obligation, in the case of a parent (or

6 other obligor or obligee) who fails to re7 spond to notice to appear at a proceeding

8 for such purpose.

9 ‘‘(C) To subpoena any financial or other

10 information needed to establish, modify, or en11 force an order, and to sanction failure to re12 spond to any such subpoena.

13 ‘‘(D) To require all entities in the State

14 (including for-profit, nonprofit, and govern15 mental employers) to provide promptly, in re16 sponse to a request by the State agency of that

17 or any other State administering a program

18 under this part, information on the employ19 ment, compensation, and benefits of any indi20 vidual employed by such entity as an employee

21 or contractor, and to sanction failure to respond

22 to any such request.

23 ‘‘(E) To obtain access, subject to safe24 guards on privacy and information security, to

25 the following records (including automated ac-
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1 cess, in the case of records maintained in auto2 mated data bases):

3 ‘‘(i) Records of other State and local

4 government agencies, including—

5 ‘‘(I) vital statistics (including

6 records of marriage, birth, and di7 vorce);

8 ‘‘(II) State and local tax and rev9 enue records (including information

10 on residence address, employer, in11 come and assets);

12 ‘‘(III) records concerning real

13 and titled personal property;

14 ‘‘(IV) records of occupational and

15 professional licenses, and records con16 cerning the ownership and control of

17 corporations, partnerships, and other

18 business entities;

19 ‘‘(V) employment security

20 records;

21 ‘‘(VI) records of agencies admin22 istering public assistance programs;

23 ‘‘(VII) records of the motor vehi24 cle department; and

25 ‘‘(VIII) corrections records.
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1 ‘‘(ii) Certain records held by private

2 entities, including—

3 ‘‘(I) customer records of public

4 utilities and cable television compa5 nies; and

6 ‘‘(II) information (including in7 formation on assets and liabilities) on

8 individuals who owe or are owed sup9 port (or against or with respect to

10 whom a support obligation is sought)

11 held by financial institutions (subject

12 to limitations on liability of such enti13 ties arising from affording such ac14 cess).

15 ‘‘(F) To order income withholding in ac16 cordance with subsection (a)(1) and (b) of sec17 tion 466.

18 ‘‘(G) In cases where support is subject to

19 an assignment under section 402(a)(26),

20 471(a)(17), or 1912, or to a requirement to pay

21 through the centralized collections unit under

22 section 454B) upon providing notice to obligor

23 and obligee, to direct the obligor or other payor

24 to change the payee to the appropriate govern25 ment entity.
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1 ‘‘(H) For the purpose of securing overdue

2 support—

3 ‘‘(i) to intercept and seize any peri4 odic or lump-sum payment to the obligor

5 by or through a State or local government

6 agency, including—

7 ‘‘(I) unemployment compensa8 tion, workers’ compensation, and

9 other benefits;

10 ‘‘(II) judgments and settlements

11 in cases under the jurisdiction of the

12 State or local government; and

13 ‘‘(III) lottery winnings;

14 ‘‘(ii) to attach and seize assets of the

15 obligor held by financial institutions;

16 ‘‘(iii) to attach public and private re17 tirement funds in appropriate cases, as de18 termined by the Secretary; and

19 ‘‘(iv) to impose liens in accordance

20 with paragraph (a)(4) and, in appropriate

21 cases, to force sale of property and dis22 tribution of proceeds.

23 ‘‘(I) For the purpose of securing overdue

24 support, to increase the amount of monthly

25 support payments to include amounts for ar-
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1 rearages (subject to such conditions or restric2 tions as the State may provide).

3 ‘‘(J) To suspend drivers’ licenses of indi4 viduals owing past-due support, in accordance

5 with subsection (a)(16).

6 ‘‘(2) The expedited procedures required under

7 subsection (a)(2) shall include the following rules

8 and authority, applicable with respect to all proceed9 ings to establish paternity or to establish, modify, or

10 enforce support orders:

11 ‘‘(A) Procedures under which—

12 ‘‘(i) the parties to any paternity or

13 child support proceedings are required

14 (subject to privacy safeguards) to file with

15 the tribunal before entry of an order, and

16 to update as appropriate, information on

17 location and identity (including social secu18 rity number, residential and mailing ad19 dresses, telephone number, driver’s license

20 number, and name, address, and telephone

21 number of employer); and

22 ‘‘(ii) in any subsequent child support

23 enforcement action between the same par24 ties, the tribunal shall be authorized, upon

25 sufficient showing that diligent effort has
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1 been made to ascertain such party’s cur2 rent location, to deem due process require3 ments for notice and service of process to

4 be met, with respect to such party, by de5 livery to the most recent residential or em6 ployer address so filed pursuant to clause

7 (i).

8 ‘‘(B) Procedures under which—

9 ‘‘(i) the State agency and any admin10 istrative or judicial tribunal with authority

11 to hear child support and paternity cases

12 exerts statewide jurisdiction over the par13 ties, and orders issued in such cases have

14 statewide effect; and

15 ‘‘(ii) in the case of a State in which

16 orders in such cases are issued by local ju17 risdictions, a case may be transferred be18 tween jurisdictions in the State without

19 need for any additional filing by the peti20 tioner, or service of process upon the re21 spondent, to retain jurisdiction over the

22 parties.’’.

23 (b) EXCEPTIONS FROM STATE LAW REQUIRE24 MENTS.—Section 466(d) (42 U.S.C. 666(d)) is amend25 ed—
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1 (1) by striking ‘‘(d) If’’ and inserting ‘‘(d)(1)

2 Subject to paragraph (2), if’’; and

3 (2) by adding at the end the following new

4 paragraph:

5 ‘‘(2) The Secretary shall not grant an exemption

6 from the requirements of—

7 ‘‘(A) subsection (a)(5) (concerning procedures

8 for paternity establishment);

9 ‘‘(B) subsection (a)(10) (concerning modifica10 tion of orders);

11 ‘‘(C) subsection (a)(12) (concerning recording

12 of orders in the central State case registry);

13 ‘‘(D) subsection (a)(13) (concerning recording

14 of social security numbers);

15 ‘‘(E) subsection (a)(14) (concerning interstate

16 enforcement); or

17 ‘‘(F) subsection (c) (concerning expedited pro18 cedures), other than paragraph (1)(A) thereof (con19 cerning establishment or modification of support

20 amount).’’.

21 (c) AUTOMATION OF STATE AGENCY FUNCTIONS.—

22 Section 454A, as added by section 315(a)(2) and as

23 amended by sections 321 and 322(c), is amended by add24 ing at the end the following new subsection:
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1 ‘‘(h) EXPEDITED ADMINISTRATIVE PROCEDURES.—

2 The automated system required under this section shall

3 be used, to the maximum extent feasible, to implement any

4 expedited administrative procedures required under sec5 tion 466(c).’’.

6 PART V—PATERNITY ESTABLISHMENT

7 SEC. 341. STATE LAWS CONCERNING PATERNITY ESTAB8 LISHMENT.

9 (a) STATE LAWS REQUIRED.—Section 466(a)(5) (42

10 U.S.C. 666(a)(5)) is amended—

11 (1) in subparagraph (B)—

12 (A) by striking ‘‘(B)’’ and inserting

13 ‘‘(B)(i)’’;

14 (B) in clause (i), as redesignated, by in15 serting before the period ‘‘, where such request

16 is supported by a sworn statement—

17 ‘‘(I) by such party alleging paternity setting

18 forth facts establishing a reasonable possibility of

19 the requisite sexual contact of the parties; or

20 ‘‘(II) by such party denying paternity setting

21 forth facts establishing a reasonable possibility of

22 the nonexistence of sexual contact of the parties;’’;

23 and

24 (C) by inserting after clause (i) (as redes25 ignated) the following new clause:
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1 ‘‘(ii) Procedures which require the State agen2 cy, in any case in which such agency orders genetic

3 testing—

4 ‘‘(I) to pay the costs of such tests, subject

5 to recoupment (where the State so elects) from

6 the putative father if paternity is established;

7 and

8 ‘‘(II) to obtain additional testing in any

9 case where an original test result is disputed,

10 upon request and advance payment by the dis11 puting party.’’;

12 (2) by striking subparagraphs (C), (D), (E),

13 and (F) and inserting the following:

14 ‘‘(C)(i) Procedures for a simple civil process for

15 voluntarily acknowledging paternity under which the

16 State must provide that, before a mother and a pu17 tative father can sign an acknowledgment of pater18 nity, the putative father and the mother must be

19 given notice, orally, in writing, and in a language

20 that each can understand, of the alternatives to, the

21 legal consequences of, and the rights (including, if 1

22 parent is a minor, any rights afforded due to minor23 ity status) and responsibilities that arise from, sign24 ing the acknowledgment.
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1 ‘‘(ii) Such procedures must include a hospital2 based program for the voluntary acknowledgment of

3 paternity focusing on the period immediately before

4 or after the birth of a child.

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

6 agency responsible for maintaining birth records to

7 offer voluntary paternity establishment services.

8 ‘‘(iv) The Secretary shall prescribe regulations

9 governing voluntary paternity establishment services

10 offered by hospitals and birth record agencies. The

11 Secretary shall prescribe regulations specifying the

12 types of other entities that may offer voluntary pa13 ternity establishment services, and governing the

14 provision of such services, which shall include a re15 quirement that such an entity must use the same

16 notice provisions used by, the same materials used

17 by, provide the personnel providing such services

18 with the same training provided by, and evaluate the

19 provision of such services in the same manner as,

20 voluntary paternity establishment programs of hos21 pitals and birth record agencies.

22 ‘‘(D)(i) Procedures under which a signed ac23 knowledgment of paternity is considered a legal find24 ing of paternity, subject to the right of any signa25 tory to rescind the acknowledgment within 60 days.
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1 ‘‘(ii)(I) Procedures under which, after the 60-

2 day period referred to in clause (i), a signed ac3 knowledgment of paternity may be challenged in

4 court only on the basis of fraud, duress, or material

5 mistake of fact, with the burden of proof upon the

6 challenger, and under which the legal responsibilities

7 (including child support obligations) of any signatory

8 arising from the acknowledgment may not be sus9 pended during the challenge, except for good cause

10 shown.

11 ‘‘(II) Procedures under which, after the 60-day

12 period referred to in clause (i), a minor who signs

13 an acknowledgment of paternity other than in the

14 presence of a parent or court-appointed guardian ad

15 litem may rescind the acknowledgment in a judicial

16 or administrative proceeding, until the earlier of—

17 ‘‘(aa) attaining the age of majority; or

18 ‘‘(bb) the date of the first judicial or ad19 ministrative proceeding brought (after the sign20 ing) to establish a child support obligation, visi21 tation rights, or custody rights with respect to

22 the child whose paternity is the subject of the

23 acknowledgment, and at which the minor is rep24 resented by a parent, guardian ad litem, or at25 torney.
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1 ‘‘(E) Procedures under which no judicial or ad2 ministrative proceedings are required or permitted to

3 ratify an unchallenged acknowledgment of paternity.

4 ‘‘(F) Procedures requiring—

5 ‘‘(i) that the State admit into evidence, for

6 purposes of establishing paternity, results of

7 any genetic test that is—

8 ‘‘(I) of a type generally acknowledged,

9 by accreditation bodies designated by the

10 Secretary, as reliable evidence of paternity;

11 and

12 ‘‘(II) performed by a laboratory ap13 proved by such an accreditation body;

14 ‘‘(ii) that any objection to genetic testing

15 results must be made in writing not later than

16 a specified number of days before any hearing

17 at which such results may be introduced into

18 evidence (or, at State option, not later than a

19 specified number of days after receipt of such

20 results); and

21 ‘‘(iii) that, if no objection is made, the test

22 results are admissible as evidence of paternity

23 without the need for foundation testimony or

24 other proof of authenticity or accuracy.’’; and
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1 (3) by adding after subparagraph (H) the fol2 lowing new subparagraphs:

3 ‘‘(I) Procedures providing that the parties to an

4 action to establish paternity are not entitled to a

5 jury trial.

6 ‘‘(J) Procedures which require that a temporary

7 order be issued, upon motion by a party, requiring

8 the provision of child support pending an adminis9 trative or judicial determination of parentage, where

10 there is clear and convincing evidence of paternity

11 (on the basis of genetic tests or other evidence).

12 ‘‘(K) Procedures under which bills for preg13 nancy, childbirth, and genetic testing are admissible

14 as evidence without requiring third-party foundation

15 testimony, and shall constitute prima facie evidence

16 of amounts incurred for such services and testing on

17 behalf of the child.

18 ‘‘(L) At the option of the State, procedures

19 under which the tribunal establishing paternity and

20 support has discretion to waive rights to all or part

21 of amounts owed to the State (but not to the moth22 er) for costs related to pregnancy, childbirth, and

23 genetic testing and for public assistance paid to the

24 family where the father cooperates or acknowledges

25 paternity before or after genetic testing.
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1 ‘‘(M) Procedures ensuring that the putative fa2 ther has a reasonable opportunity to initiate a pater3 nity action.’’.

4 (b) TECHNICAL AMENDMENT.—Section 468 (42

5 U.S.C. 668) is amended by striking ‘‘a simple civil process

6 for voluntarily acknowledging paternity and’’.

7 SEC. 342. OUTREACH FOR VOLUNTARY PATERNITY ESTAB8 LISHMENT.

9 (a) STATE PLAN REQUIREMENT.—Section 454(23)

10 (42 U.S.C. 654(23)) is amended—

11 (1) by striking ‘‘(23)’’ and inserting ‘‘(23)(A)’’;

12 (2) by inserting ‘‘and’’ after the semicolon; and

13 (3) by adding at the end the following new sub14 paragraph:

15 ‘‘(B) publicize the availability and encourage

16 the use of procedures for voluntary establishment of

17 paternity and child support through a variety of

18 means, which—

19 ‘‘(i) include distribution of written mate20 rials at health care facilities (including hospitals

21 and clinics), and other locations such as

22 schools;

23 ‘‘(ii) may include pre-natal programs to

24 educate expectant couples on individual and

25 joint rights and responsibilities with respect to
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1 paternity (and may require all expectant recipi2 ents of assistance under part A to participate in

3 such pre-natal programs, as an element of co4 operation with efforts to establish paternity and

5 child support);

6 ‘‘(iii) include, with respect to each child

7 discharged from a hospital after birth for whom

8 paternity or child support has not been estab9 lished, reasonable follow-up efforts, providing—

10 ‘‘(I) in the case of a child for whom

11 paternity has not been established, infor12 mation on the benefits of and procedures

13 for establishing paternity; and

14 ‘‘(II) in the case of a child for whom

15 paternity has been established but child

16 support has not been established, informa17 tion on the benefits of and procedures for

18 establishing a child support order, and an

19 application for child support services;’’.

20 (b) ENHANCED FEDERAL MATCHING.—Section

21 455(a)(1)(C) (42 U.S.C. 655(a)(1)(C)) is amended—

22 (1) by inserting ‘‘(i)’’ before ‘‘laboratory costs’’,

23 and
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1 (2) by inserting before the semicolon ‘‘, and (ii)

2 costs of outreach programs designed to encourage

3 voluntary acknowledgment of paternity’’.

4 (c) EFFECTIVE DATES.—

5 (1) IN GENERAL.—The amendments made by

6 subsection (a) shall become effective October 1,

7 1997.

8 (2) EXCEPTION.—The amendments made by

9 subsection (b) shall be effective with respect to cal10 endar quarters beginning on and after October 1,

11 1996.

12 PART VI—ESTABLISHMENT AND MODIFICATION

13 OF SUPPORT ORDERS

14 SEC. 351. NATIONAL CHILD SUPPORT GUIDELINES COMMIS15 SION.

16 (a) ESTABLISHMENT.—There is hereby established a

17 commission to be known as the ‘‘National Child Support

18 Guidelines Commission’’ (in this section referred to as the

19 ‘‘Commission’’).

20 (b) GENERAL DUTIES.—

21 (1) IN GENERAL.—The Commission shall deter22 mine—

23 (A) whether it is appropriate to develop a

24 national child support guideline for consider-
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1 ation by the Congress or for adoption by indi2 vidual States; or

3 (B) based on a study of various guideline

4 models, the benefits and deficiencies of such

5 models, and any needed improvements.

6 (2) DEVELOPMENT OF MODELS.—If the Com7 mission determines under paragraph (1)(A) that a

8 national child support guideline is needed or under

9 paragraph (1)(B) that improvements to guideline

10 models are needed, the Commission shall develop

11 such national guideline or improvements.

12 (c) MATTERS FOR CONSIDERATION BY THE COMMIS13 SION.—In making the recommendations concerning guide14 lines required under subsection (b), the Commission shall

15 consider—

16 (1) the adequacy of State child support guide17 lines established pursuant to section 467 of the So18 cial Security Act;

19 (2) matters generally applicable to all support

20 orders, including—

21 (A) the feasibility of adopting uniform

22 terms in all child support orders;

23 (B) how to define income and under what

24 circumstances income should be imputed; and
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1 (C) tax treatment of child support pay2 ments;

3 (3) the appropriate treatment of cases in which

4 either or both parents have financial obligations to

5 more than 1 family, including the effect (if any) to

6 be given to—

7 (A) the income of either parent’s spouse;

8 and

9 (B) the financial responsibilities of either

10 parent for other children or stepchildren;

11 (4) the appropriate treatment of expenses for

12 child care (including care of the children of either

13 parent, and work-related or job-training-related child

14 care);

15 (5) the appropriate treatment of expenses for

16 health care (including uninsured health care) and

17 other extraordinary expenses for children with spe18 cial needs;

19 (6) the appropriate duration of support by 1 or

20 both parents, including

21 (A) support (including shared support) for

22 post-secondary or vocational education; and

23 (B) support for disabled adult children;

24 (7) procedures to automatically adjust child

25 support orders periodically to address changed eco-
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1 nomic circumstances, including changes in the

2 consumer price index or either parent’s income and

3 expenses in particular cases;

4 (8) procedures to help non-custodial parents ad5 dress grievances regarding visitation and custody or6 ders to prevent such parents from withholding child

7 support payments until such grievances are resolved;

8 and

9 (9) whether, or to what extent, support levels

10 should be adjusted in cases in which custody is

11 shared or in which the noncustodial parent has ex12 tended visitation rights.

13 (d) MEMBERSHIP.—

14 (1) NUMBER; APPOINTMENT.—

15 (A) IN GENERAL.—The Commission shall

16 be composed of 12 individuals appointed jointly

17 by the Secretary of Health and Human Services

18 and the Congress, not later than January 15,

19 1997, of which—

20 (i) 2 shall be appointed by the Chair21 man of the Committee on Finance of the

22 Senate, and 1 shall be appointed by the

23 ranking minority member of the Commit24 tee;
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1 (ii) 2 shall be appointed by the Chair2 man of the Committee on Ways and Means

3 of the House of Representatives, and 1

4 shall be appointed by the ranking minority

5 member of the Committee; and

6 (iii) 6 shall be appointed by the Sec7 retary of Health and Human Services.

8 (B) QUALIFICATIONS OF MEMBERS.—

9 Members of the Commission shall have exper10 tise and experience in the evaluation and devel11 opment of child support guidelines. At least 1

12 member shall represent advocacy groups for

13 custodial parents, at least 1 member shall rep14 resent advocacy groups for noncustodial par15 ents, and at least 1 member shall be the direc16 tor of a State program under part D of title IV

17 of the Social Security Act.

18 (2) TERMS OF OFFICE.—Each member shall be

19 appointed for a term of 2 years. A vacancy in the

20 Commission shall be filled in the manner in which

21 the original appointment was made.

22 (e) COMMISSION POWERS, COMPENSATION, ACCESS

23 TO INFORMATION, AND SUPERVISION.—The first sentence

24 of subparagraph (C), the first and third sentences of sub25 paragraph (D), subparagraph (F) (except with respect to
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1 the conduct of medical studies), clauses (ii) and (iii) of

2 subparagraph (G), and subparagraph (H) of section

3 1886(e)(6) of the Social Security Act shall apply to the

4 Commission in the same manner in which such provisions

5 apply to the Prospective Payment Assessment Commis6 sion.

7 (f) REPORT.—Not later than 2 years after the ap8 pointment of members, the Commission shall submit to

9 the President, the Committee on Ways and Means of the

10 House of Representatives, and the Committee on Finance

11 of the Senate, a recommended national child support

12 guideline and a final assessment of issues relating to such

13 a proposed national child support guideline.

14 (g) TERMINATION.—The Commission shall terminate

15 6 months after the submission of the report described in

16 subsection (e).

17 SEC. 352. SIMPLIFIED PROCESS FOR REVIEW AND ADJUST18 MENT OF CHILD SUPPORT ORDERS.

19 Section 466(a)(10) (42 U.S.C. 666(a)(10)) is amend20 ed to read as follows:

21 ‘‘(10)(A)(i) Procedures under which—

22 ‘‘(I) every 3 years, at the request of either

23 parent subject to a child support order, the

24 State shall review and, as appropriate, adjust

25 the order in accordance with the guidelines es-
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1 tablished under section 467(a) if the amount of

2 the child support award under the order differs

3 from the amount that would be awarded in ac4 cordance with such guidelines, without a re5 quirement for any other change in cir6 cumstances; and

7 ‘‘(II) upon request at any time of either

8 parent subject to a child support order, the

9 State shall review and, as appropriate, adjust

10 the order in accordance with the guidelines es11 tablished under section 467(a) based on a sub12 stantial change in the circumstances of either

13 such parent.

14 ‘‘(ii) Such procedures shall require both parents

15 subject to a child support order to be notified of

16 their rights and responsibilities provided for under

17 clause (i) at the time the order is issued and in the

18 annual information exchange form provided under

19 subparagraph (B).

20 ‘‘(B) Procedures under which each child sup21 port order issued or modified in the State after the

22 effective date of this subparagraph shall require the

23 parents subject to the order to provide each other

24 with a complete statement of their respective finan25 cial condition annually on a form which shall be pro-
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1 vided by the State. The Secretary shall establish reg2 ulations for the enforcement of such exchange of in3 formation.’’.

4 PART VII—ENFORCEMENT OF SUPPORT ORDERS

5 SEC. 361. FEDERAL INCOME TAX REFUND OFFSET.

6 (a) CHANGED ORDER OF REFUND DISTRIBUTION

7 UNDER INTERNAL REVENUE CODE.—Section 6402(c) of

8 the Internal Revenue Code of 1986 (relating to offset of

9 past-due support against overpayments) is amended—

10 (1) by striking ‘‘The amount’’ and inserting

11 ‘‘(1) IN GENERAL.—The amount’’;

12 (2) by striking ‘‘paid to the State. A reduction’’

13 and inserting ‘‘paid to the State’’.

14 ‘‘(2) PRIORITIES FOR OFFSET.—A reduction’’;

15 (3) by striking ‘‘has been assigned’’ and insert16 ing ‘‘has not been assigned’’; and

17 (4) by striking ‘‘and shall be applied’’ and all

18 that follows and inserting ‘‘and shall thereafter be

19 applied to satisfy any past-due support that has

20 been so assigned.’’.

21 (b) ELIMINATION OF DISPARITIES IN TREATMENT

22 OF ASSIGNED AND NON-ASSIGNED ARREARAGES.—

23 (1) IN GENERAL.—Section 464(a) (42 U.S.C.

24 664(a)) is amended—

25 (A) in paragraph (1)—
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1 (i) in the first sentence, by striking

2 ‘‘which has been assigned to such State

3 pursuant to section 402(a)(26) or section

4 471(a)(17)’’; and

5 (ii) in the second sentence, by striking

6 ‘‘in accordance with section 457 (b)(4) or

7 (d)(3)’’ and inserting ‘‘as provided in para8 graph (2)’’;

9 (B) in paragraph (2), to read as follows:

10 ‘‘(2) The State agency shall distribute amounts

11 paid by the Secretary of the Treasury pursuant to

12 paragraph (1)—

13 ‘‘(A) in accordance with subsection (a)(4)

14 or (d)(3) of section 457, in the case of past-due

15 support assigned to a State pursuant to section

16 402(a)(26) or section 471(a)(17); and

17 ‘‘(B) to or on behalf of the child to whom

18 the support was owed, in the case of past-due

19 support not so assigned.’’;

20 (C) in paragraph (3)—

21 (i) by striking ‘‘or (2)’’ each place it

22 appears; and

23 (ii) in subparagraph (B), by striking

24 ‘‘under paragraph (2)’’ and inserting ‘‘on
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1 account of past-due support described in

2 paragraph (2)(B)’’.

3 (2) NOTICES OF PAST-DUE SUPPORT.—Section

4 464(b) (42 U.S.C. 664(b)) is amended—

5 (A) by striking ‘‘(b)(1)’’ and inserting

6 ‘‘(b)’’; and

7 (B) by striking paragraph (2).

8 (3) DEFINITION OF PAST-DUE SUPPORT.—Sec9 tion 464(c) (42 U.S.C. 664(c)) is amended—

10 (A) by striking ‘‘(c)(1) Except as provided

11 in paragraph (2), as’’ and inserting ‘‘(c) As’’;

12 and

13 (B) by striking paragraphs (2) and (3).

14 (c) TREATMENT OF LUMP-SUM TAX REFUND

15 UNDER AFDC.—

16 (1) EXEMPTION FROM LUMP-SUM RULE.—Sec17 tion 402(a)(17) (42 U.S.C. 602(a)(17)) is amended

18 by inserting before the semicolon at the end the fol19 lowing: ‘‘, but this paragraph shall not apply to in20 come received by a family that is attributable to a

21 child support obligation owed with respect to a mem22 ber of the family and that is paid to the family from

23 amounts withheld from a Federal income tax refund

24 otherwise payable to the person owing such obliga25 tion, to the extent that such income is placed in a
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1 qualified asset account (as defined in section 406(i))

2 the total amounts in which, after such placement,

3 does not exceed $10,000’’.

4 (2) QUALIFIED ASSET ACCOUNT DEFINED.—

5 Section 406 (42 U.S.C. 606) is amended by adding

6 at the end the following new subsection:

7 ‘‘(i)(1) The term ‘qualified asset account’ means a

8 mechanism approved by the State (such as individual re9 tirement accounts, escrow accounts, or savings bonds) that

10 allows savings of a family receiving aid to families with

11 dependent children to be used for qualified distributions.

12 ‘‘(2) The term ‘qualified distribution’ means a dis13 tribution from a qualified asset account for expenses di14 rectly related to 1 or more of the following purposes:

15 ‘‘(A) The attendance of a member of the family

16 at any education or training program.

17 ‘‘(B) The improvement of the employability (in18 cluding self-employment) of a member of the family

19 (such as through the purchase of an automobile).

20 ‘‘(C) The purchase of a home for the family.

21 ‘‘(D) A change of the family residence.’’.

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

23 this section shall become effective October 1, 1999.
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1 SEC. 362. INTERNAL REVENUE SERVICE COLLECTION OF

2 ARREARAGES.

3 (a) AMENDMENT TO INTERNAL REVENUE CODE.—

4 Section 6305(a) of the Internal Revenue Code of 1986 (re5 lating to collection of certain liability) is amended—

6 (1) in paragraph (1), by inserting ‘‘except as

7 provided in paragraph (5)’’ after ‘‘collected’’;

8 (2) by striking ‘‘and’’ at the end of paragraph

9 (3);

10 (3) by striking the period at the end of para11 graph (4) and inserting ‘‘, and’’;

12 (4) by adding at the end the following new

13 paragraph:

14 ‘‘(5) no additional fee may be assessed for ad15 justments to an amount previously certified pursu16 ant to such section 452(b) with respect to the same

17 obligor.’’; and

18 (5) by striking ‘‘Secretary of Health, Edu19 cation, and Welfare’’ each place it appears and in20 serting ‘‘Secretary of Health and Human Services’’.

21 (b) EFFECTIVE DATE.—The amendments made by

22 this section shall become effective October 1, 1997.

23 SEC. 363. AUTHORITY TO COLLECT SUPPORT FROM FED24 ERAL EMPLOYEES.

25 (a) CONSOLIDATION AND STREAMLINING OF AU26 THORITIES.—Section 459 (42 U.S.C. 659) is amended—
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1 (1) in the heading, by inserting ‘‘INCOME WITH2 HOLDING,’’ before ‘‘GARNISHMENT’’;

3 (2) in subsection (a)—

4 (A) by striking ‘‘section 207’’ and insert5 ing ‘‘section 207 and section 5301 of title 38,

6 United States Code’’; and

7 (B) by striking ‘‘to legal process’’ and all

8 that follows through the period and inserting

9 ‘‘to withholding in accordance with State law

10 pursuant to subsections (a)(1) and (b) of sec11 tion 466 and regulations of the Secretary there12 under, and to any other legal process brought,

13 by a State agency administering a program

14 under this part or by an individual obligee, to

15 enforce the legal obligation of such individual to

16 provide child support or alimony.’’;

17 (3) by striking subsection (b) and inserting the

18 following new subsection:

19 ‘‘(b) Except as otherwise provided herein, each entity

20 specified in subsection (a) shall be subject, with respect

21 to notice to withhold income pursuant to subsection (a)(1)

22 or (b) of section 466, or to any other order or process

23 to enforce support obligations against an individual (if

24 such order or process contains or is accompanied by suffi25 cient data to permit prompt identification of the individual
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1 and the moneys involved), to the same requirements as

2 would apply if such entity were a private person.’’;

3 (4) by striking subsections (c) and (d) and in4 serting the following new subsections:

5 ‘‘(c)(1) The head of each agency subject to the re6 quirements of this section shall—

7 ‘‘(A) designate an agent or agents to receive or8 ders and accept service of process; and

9 ‘‘(B) publish—

10 ‘‘(i) in the appendix of such regulations;

11 ‘‘(ii) in each subsequent republication of

12 such regulations; and

13 ‘‘(iii) annually in the Federal Register,

14 the designation of such agent or agents, identified

15 by title of position, mailing address, and telephone

16 number.

17 ‘‘(2) Whenever an agent designated pursuant to para18 graph (1) receives notice pursuant to subsection (a)(1) or

19 (b) of section 466, or is effectively served with any order,

20 process, or interrogatories, with respect to an individual’s

21 child support or alimony payment obligations, such agent

22 shall—

23 ‘‘(A) as soon as possible (but not later than 15

24 days) thereafter, send written notice of such notice

25 or service (together with a copy thereof) to such in-
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1 dividual at his duty station or last-known home ad2 dress;

3 ‘‘(B) not later than 30 days (or such longer pe4 riod as may be prescribed by applicable State law)

5 after receipt of a notice pursuant to subsection

6 (a)(1) or (b) of section 466, comply with all applica7 ble provisions of such section 466; and

8 ‘‘(C) not later than 30 days (or such longer pe9 riod as may be prescribed by applicable State law)

10 after effective service of any other such order, proc11 ess, or interrogatories, respond thereto.

12 ‘‘(d) In the event that a governmental entity receives

13 notice or is served with process, as provided in this section,

14 concerning amounts owed by an individual to more than

15 1 person—

16 ‘‘(1) support collection under section 466(b)

17 must be given priority over any other process, as

18 provided in section 466(b)(7);

19 ‘‘(2) allocation of moneys due or payable to an

20 individual among claimants under section 466(b)

21 shall be governed by the provisions of such section

22 466(b) and regulations thereunder; and

23 ‘‘(3) such moneys as remain after compliance

24 with subparagraphs (A) and (B) shall be available to

25 satisfy any other such processes on a first-come,
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1 first-served basis, with any such process being satis2 fied out of such moneys as remain after the satisfac3 tion of all such processes which have been previously

4 served.’’;

5 (5) in subsection (f)—

6 (A) by striking ‘‘(f)’’ and inserting

7 ‘‘(f)(1)’’; and

8 (B) by adding at the end the following new

9 paragraph:

10 ‘‘(2) No Federal employee whose duties include tak11 ing actions necessary to comply with the requirements of

12 subsection (a) with regard to any individual shall be sub13 ject under any law to any disciplinary action or civil or

14 criminal liability or penalty for, or on account of, any dis15 closure of information made by him in connection with the

16 carrying out of such duties.’’; and

17 (6) by adding at the end the following new sub18 sections:

19 ‘‘(g) Authority to promulgate regulations for the im20 plementation of the provisions of this section shall, insofar

21 as the provisions of this section are applicable to moneys

22 due from (or payable by)—

23 ‘‘(1) the executive branch of the Federal Gov24 ernment (including in such branch, for the purposes

25 of this subsection, the territories and possessions of
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1 the United States, the United States Postal Service,

2 the Postal Rate Commission, any wholly owned Fed3 eral corporation created by an Act of Congress, and

4 the government of the District of Columbia), be

5 vested in the President (or the President’s designee);

6 ‘‘(2) the legislative branch of the Federal Gov7 ernment, be vested jointly in the President pro tem8 pore of the Senate and the Speaker of the House of

9 Representatives (or their designees); and

10 ‘‘(3) the judicial branch of the Federal Govern11 ment, be vested in the Chief Justice of the United

12 States (or the Chief Justice’s designee).

13 ‘‘(h) Subject to subsection (i), moneys paid or payable

14 to an individual which are considered to be based upon

15 remuneration for employment, for purposes of this sec16 tion—

17 ‘‘(1) consist of—

18 ‘‘(A) compensation paid or payable for per19 sonal services of such individual, whether such

20 compensation is denominated as wages, salary,

21 commission, bonus, pay, allowances, or other22 wise (including severance pay, sick pay, and in23 centive pay);
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1 ‘‘(B) periodic benefits (including a periodic

2 benefit as defined in section 228(h)(3)) or other

3 payments—

4 ‘‘(i) under the insurance system estab5 lished by title II;

6 ‘‘(ii) under any other system or fund

7 established by the United States which

8 provides for the payment of pensions, re9 tirement or retired pay, annuities, depend10 ents’ or survivors’ benefits, or similar

11 amounts payable on account of personal

12 services performed by the individual or any

13 other individual;

14 ‘‘(iii) as compensation for death under

15 any Federal program;

16 ‘‘(iv) under any Federal program es17 tablished to provide ‘black lung’ benefits;

18 or

19 ‘‘(v) by the Secretary of Veterans Af20 fairs as pension, or as compensation for a

21 service-connected disability or death (ex22 cept any compensation paid by such Sec23 retary to a former member of the Armed

24 Forces who is in receipt of retired or re25 tainer pay if such former member has
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1 waived a portion of his retired pay in order

2 to receive such compensation); and

3 ‘‘(C) worker’s compensation benefits paid

4 under Federal or State law; but

5 ‘‘(2) do not include any payment—

6 ‘‘(A) by way of reimbursement or other7 wise, to defray expenses incurred by such indi8 vidual in carrying out duties associated with his

9 employment; or

10 ‘‘(B) as allowances for members of the uni11 formed services payable pursuant to chapter 7

12 of title 37, United States Code, as prescribed

13 by the Secretaries concerned (defined by section

14 101(5) of such title) as necessary for the effi15 cient performance of duty.

16 ‘‘(i) In determining the amount of any moneys due

17 from, or payable by, the United States to any individual,

18 there shall be excluded amounts which—

19 ‘‘(1) are owed by such individual to the United

20 States;

21 ‘‘(2) are required by law to be, and are, de22 ducted from the remuneration or other payment in23 volved, including Federal employment taxes, and

24 fines and forfeitures ordered by court-martial;
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1 ‘‘(3) are properly withheld for Federal, State,

2 or local income tax purposes, if the withholding of

3 such amounts is authorized or required by law and

4 if amounts withheld are not greater than would be

5 the case if such individual claimed all the depend6 ents that the individual was entitled to (the with7 holding of additional amounts pursuant to section

8 3402(i) of the Internal Revenue Code of 1986 may

9 be permitted only when such individual presents evi10 dence of a tax obligation which supports the addi11 tional withholding);

12 ‘‘(4) are deducted as health insurance pre13 miums;

14 ‘‘(5) are deducted as normal retirement con15 tributions (not including amounts deducted for sup16 plementary coverage); or

17 ‘‘(6) are deducted as normal life insurance pre18 miums from salary or other remuneration for em19 ployment (not including amounts deducted for sup20 plementary coverage).

21 ‘‘(j) For purposes of this section—’’.

22 (b) TRANSFER OF SUBSECTIONS.—Subsections (a)

23 through (d) of section 462 (42 U.S.C. 662), are trans24 ferred and redesignated as paragraphs (1) through (4),

25 respectively, of section 459(j) (as added by subsection
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1 (a)(6)), and the left margin of each of such paragraphs

2 (1) through (4) is indented 2 ems to the right of the left

3 margin of subsection (j) (as added by subsection (a)(6)).

4 (c) CONFORMING AMENDMENTS.—

5 (1) TO PART D OF TITLE IV.—Sections 461 and

6 462 (42 U.S.C. 661) are repealed.

7 (2) TO TITLE 5, UNITED STATES CODE.—Sec8 tion 5520a of title 5, United States Code, is amend9 ed, in subsections (h)(2) and (i), by striking ‘‘sec10 tions 459, 461, and 462 of the Social Security Act

11 (42 U.S.C. 659, 661, and 662)’’ each place it ap12 pears and inserting ‘‘section 459 of the Social Secu13 rity Act (42 U.S.C. 659)’’.

14 (d) MILITARY RETIRED AND RETAINER PAY.—Sec15 tion 1408 of title 10, United States Code, is amended—

16 (1) in subsection (a)—

17 (A) in paragraph (1)—

18 (i) in subparagraph (B), by striking

19 ‘‘and’’;

20 (ii) in subparagraph (C), by striking

21 the period and inserting ‘‘; and’’; and

22 (iii) by adding at the end the follow23 ing new subparagraph:

24 ‘‘(D) any administrative or judicial tribu25 nal of a State competent to enter orders for
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1 support or maintenance (including a State

2 agency administering a State program under

3 part D of title IV of the Social Security Act).’’;

4 (B) in paragraph (2), by inserting ‘‘or a

5 court order for the payment of child support

6 not included in or accompanied by such a de7 cree or settlement,’’ before ‘‘which—’’;

8 (2) in subsection (d)—

9 (A) in the heading, by inserting ‘‘(OR FOR

10 BENEFIT OF)’’ after ‘‘CONCERNED’’; and

11 (B) in paragraph (1), in the first sentence,

12 by inserting ‘‘(or for the benefit of such spouse

13 or former spouse to a State central collections

14 unit or other public payee designated by a

15 State, in accordance with part D of title IV of

16 the Social Security Act, as directed by court

17 order, or as otherwise directed in accordance

18 with such part D)’’ before ‘‘in an amount suffi19 cient’’; and

20 (3) by adding at the end the following new sub21 section:

22 ‘‘(j) RELATIONSHIP TO OTHER LAWS.—In any case

23 involving a child support order against a member who has

24 never been married to the other parent of the child, the

25 provisions of this section shall not apply, and the case
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1 shall be subject to the provisions of section 459 of the

2 Social Security Act.’’.

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

4 this section shall become effective 6 months after the date

5 of the enactment of this Act.

6 SEC. 364. ENFORCEMENT OF CHILD SUPPORT OBLIGA7 TIONS OF MEMBERS OF THE ARMED FORCES.

8 (a) AVAILABILITY OF LOCATOR INFORMATION.—

9 (1) MAINTENANCE OF ADDRESS INFORMA10 TION.—The Secretary of Defense shall establish a

11 centralized personnel locator service that includes

12 the address of each member of the Armed Forces

13 under the jurisdiction of the Secretary. Upon re14 quest of the Secretary of Transportation, addresses

15 for members of the Coast Guard shall be included in

16 the centralized personnel locator service.

17 (2) TYPE OF ADDRESS.—

18 (A) RESIDENTIAL ADDRESS.—Except as

19 provided in subparagraph (B), the address for

20 a member of the Armed Forces shown in the lo21 cator service shall be the residential address of

22 that member.

23 (B) DUTY ADDRESS.—The address for a

24 member of the Armed Forces shown in the loca-
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1 tor service shall be the duty address of that

2 member in the case of a member—

3 (i) who is permanently assigned over4 seas, to a vessel, or to a routinely

5 deployable unit; or

6 (ii) with respect to whom the Sec7 retary concerned makes a determination

8 that the member’s residential address

9 should not be disclosed due to national se10 curity or safety concerns.

11 (3) UPDATING OF LOCATOR INFORMATION.—

12 Not later than 30 days after a member listed in the

13 locator service establishes a new residential address

14 (or a new duty address, in the case of a member cov15 ered by paragraph (2)(B)), the Secretary concerned

16 shall update the locator service to indicate the new

17 address of the member.

18 (4) AVAILABILITY OF INFORMATION.—The Sec19 retary of Defense shall make information regarding

20 the address of a member of the Armed Forces listed

21 in the locator service available, on request, to the

22 Federal Parent Locator Service.

23 (b) FACILITATING GRANTING OF LEAVE FOR AT24 TENDANCE AT HEARINGS.—
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1 (1) REGULATIONS.—The Secretary of each

2 military department, and the Secretary of Transpor3 tation with respect to the Coast Guard when it is

4 not operating as a service in the Navy, shall pre5 scribe regulations to facilitate the granting of leave

6 to a member of the Armed Forces under the juris7 diction of that Secretary in a case in which—

8 (A) the leave is needed for the member to

9 attend a hearing described in paragraph (2);

10 (B) the member is not serving in or with

11 a unit deployed in a contingency operation (as

12 defined in section 101 of title 10, United States

13 Code); and

14 (C) the exigencies of military service (as

15 determined by the Secretary concerned) do not

16 otherwise require that such leave not be grant17 ed.

18 (2) COVERED HEARINGS.—Paragraph (1) ap19 plies to a hearing that is conducted by a court or

20 pursuant to an administrative process established

21 under State law, in connection with a civil action—

22 (A) to determine whether a member of the

23 Armed Forces is a natural parent of a child; or
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1 (B) to determine an obligation of a mem2 ber of the Armed Forces to provide child sup3 port.

4 (3) DEFINITIONS.—For purposes of this sub5 section:

6 (A) The term ‘‘court’’ has the meaning

7 given that term in section 1408(a) of title 10,

8 United States Code.

9 (B) The term ‘‘child support’’ has the

10 meaning given such term in section 462 of the

11 Social Security Act (42 U.S.C. 662).

12 (c) PAYMENT OF MILITARY RETIRED PAY IN COM13 PLIANCE WITH CHILD SUPPORT ORDERS.—Section 1408

14 of title 10, United States Code, as amended by section

15 363(d)(3), is amended—

16 (1) by redesignating subsections (i) and (j) as

17 subsections (j) and (k), respectively;

18 (2) by inserting after subsection (h) the follow19 ing new subsection:

20 ‘‘(i) CERTIFICATION DATE.—It is not necessary that

21 the date of a certification of the authenticity or complete22 ness of a copy of a court order or an order of an adminis23 trative process established under State law for child sup24 port received by the Secretary concerned for the purposes
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1 of this section be recent in relation to the date of receipt

2 by the Secretary.’’; and

3 (3) in subsection (d)—

4 (A) in paragraph (1), by inserting after

5 the first sentence the following: ‘‘In the case of

6 a spouse or former spouse who, pursuant to

7 section 402(a)(26) of the Social Security Act

8 (42 U.S.C. 602(26)), assigns to a State the

9 rights of the spouse or former spouse to receive

10 support, the Secretary concerned may make the

11 child support payments referred to in the pre12 ceding sentence to that State in amounts con13 sistent with that assignment of rights.’’; and

14 (B) by adding at the end the following new

15 paragraph:

16 ‘‘(6) In the case of a court order or an order of an

17 administrative process established under State law for

18 which effective service is made on the Secretary concerned

19 on or after the date of the enactment of this paragraph

20 and which provides for payments from the disposable re21 tired pay of a member to satisfy the amount of child sup22 port set forth in the order, the authority provided in para23 graph (1) to make payments from the disposable retired

24 pay of a member to satisfy the amount of child support

25 set forth in a court order or an order of an administrative
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1 process established under State law shall apply to payment

2 of any amount of child support arrearages set forth in that

3 order as well as to amounts of child support that currently

4 become due.’’.

5 SEC. 365. VOIDING OF FRAUDULENT TRANSFERS.

6 Section 466(a) (42 U.S.C. 666(a)), as amended by

7 sections 302(a), 326(a), and 331, is amended by adding

8 at the end the following new paragraph:

9 ‘‘(15) Procedures under which—

10 ‘‘(A) the State has in effect—

11 ‘‘(i) the Uniform Fraudulent Convey12 ance Act of 1981,

13 ‘‘(ii) the Uniform Fraudulent Trans14 fer Act of 1984, or

15 ‘‘(iii) another law, specifying indicia of

16 fraud which create a prima facie case that

17 a debtor transferred income or property to

18 avoid payment to a child support creditor,

19 which the Secretary finds affords com20 parable rights to child support creditors;

21 and

22 ‘‘(B) in any case in which the State knows

23 of a transfer by a child support debtor with re24 spect to which such a prima facie case is estab25 lished, the State must—
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1 ‘‘(i) seek to void such transfer; or

2 ‘‘(ii) obtain a settlement in the best

3 interests of the child support creditor.’’.

4 SEC. 366. STATE LAW AUTHORIZING SUSPENSION OF LI5 CENSES.

6 Section 466(a) (42 U.S.C. 666(a)), as amended by

7 sections 302(a), 326(a), 331, and 365, is amended by add8 ing at the end the following new paragraph:

9 ‘‘(16) Procedures under which the State has

10 (and uses in appropriate cases) authority (subject to

11 appropriate due process safeguards) to withhold or

12 suspend, or to restrict the use of driver’s licenses,

13 professional and occupational licenses, and rec14 reational licenses of individuals owing overdue child

15 support or failing, after receiving appropriate notice,

16 to comply with subpoenas or warrants relating to

17 paternity or child support proceedings.’’.

18 SEC. 367. REPORTING ARREARAGES TO CREDIT BUREAUS.

19 Section 466(a)(7) (42 U.S.C. 666(a)(7)) is amended

20 to read as follows:

21 ‘‘(7)(A) Procedures (subject to safeguards pur22 suant to subparagraph (B)) requiring the State to

23 report periodically to consumer reporting agencies

24 (as defined in section 603(f) of the Fair Credit Re25 porting Act (15 U.S.C. 1681a(f)) the name of any
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1 absent parent who is delinquent in the payment of

2 support, and the amount of overdue support owed by

3 such parent.

4 ‘‘(B) Procedures ensuring that, in carrying out

5 subparagraph (A), information with respect to an

6 absent parent is reported—

7 ‘‘(i) only after such parent has been af8 forded all due process required under State law,

9 including notice and a reasonable opportunity

10 to contest the accuracy of such information;

11 and

12 ‘‘(ii) only to an entity that has furnished

13 evidence satisfactory to the State that the en14 tity is a consumer reporting agency.’’.

15 SEC. 368. EXTENDED STATUTE OF LIMITATION FOR COL16 LECTION OF ARREARAGES.

17 (a) IN GENERAL.—Section 466(a)(9) (42 U.S.C.

18 666(a)(9)) is amended—

19 (1) by redesignating subparagraphs (A), (B),

20 and (C) as clauses (i), (ii), and (iii), respectively;

21 (2) by striking ‘‘(9)’’ and inserting ‘‘(9)(A)’’;

22 and

23 (3) by adding at the end the following new sub24 paragraph:
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1 ‘‘(B) Procedures under which the statute of

2 limitations on any arrearages of child support ex3 tends at least until the child owed such support is

4 30 years of age.’’.

5 (b) APPLICATION OF REQUIREMENT.—The amend6 ment made by this section shall not be interpreted to re7 quire any State law to revive any payment obligation

8 which had lapsed prior to the effective date of such State

9 law.

10 SEC. 369. CHARGES FOR ARREARAGES.

11 (a) STATE LAW REQUIREMENT.—Section 466(a) (42

12 U.S.C. 666(a)), as amended by sections 302(a), 326(a),

13 331, 365, and 367, is amended by adding at the end the

14 following new paragraph:

15 ‘‘(17) Procedures providing for the calculation

16 and collection of interest or penalties for arrearages

17 of child support, and for distribution of such interest

18 or penalties collected for the benefit of the child (ex19 cept where the right to support has been assigned to

20 the State).’’.

21 (b) REGULATIONS.—The Secretary of Health and

22 Human Services shall establish by regulation a rule to re23 solve choice of law conflicts arising in the implementation

24 of the amendment made by subsection (a).
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1 (c) CONFORMING AMENDMENT.—Section 454(21)

2 (42 U.S.C. 654(21)) is repealed.

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

4 this section shall be effective with respect to arrearages

5 accruing on or after October 1, 1998.

6 SEC. 370. DENIAL OF PASSPORTS FOR NONPAYMENT OF

7 CHILD SUPPORT.

8 (a) HHS CERTIFICATION PROCEDURE.—

9 (1) SECRETARIAL RESPONSIBILITY.—Section

10 452 (42 U.S.C. 652), as amended by sections

11 315(a)(3) and 317, is amended by adding at the end

12 the following new subsection:

13 ‘‘(l)(1) If the Secretary receives a certification by a

14 State agency in accordance with the requirements of sec15 tion 454(29) that an individual owes arrearages of child

16 support in an amount exceeding $5,000 or in an amount

17 exceeding 24 months’ worth of child support, the Sec18 retary shall transmit such certification to the Secretary

19 of State for action (with respect to denial, revocation, or

20 limitation of passports) pursuant to section 370(b) of the

21 Interstate Child Support Responsibility Act of 1995.

22 ‘‘(2) The Secretary shall not be liable to an individual

23 for any action with respect to a certification by a State

24 agency under this section.’’.
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1 (2) STATE CSE AGENCY RESPONSIBILITY.—Sec2 tion 454 (42 U.S.C. 654), as amended by sections

3 301(a), 305(a), 314(b), and 322(a), is amended—

4 (A) by striking ‘‘and’’ at the end of para5 graph (27);

6 (B) by striking the period at the end of

7 paragraph (28) and inserting ‘‘; and’’; and

8 (C) by adding after paragraph (28) the fol9 lowing new paragraph:

10 ‘‘(29) provide that the State agency will have in

11 effect a procedure (which may be combined with the

12 procedure for tax refund offset under section 464)

13 for certifying to the Secretary, for purposes of the

14 procedure under section 452(l) (concerning denial of

15 passports) determinations that individuals owe ar16 rearages of child support in an amount exceeding

17 $5,000 or in an amount exceeding 24 months’ worth

18 of child support, under which procedure—

19 ‘‘(A) each individual concerned is afforded

20 notice of such determination and the con21 sequences thereof, and an opportunity to con22 test the determination; and

23 ‘‘(B) the certification by the State agency

24 is furnished to the Secretary in such format,
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1 and accompanied by such supporting docu2 mentation, as the Secretary may require.’’.

3 (b) STATE DEPARTMENT PROCEDURE FOR DENIAL

4 OF PASSPORTS.—

5 (1) IN GENERAL.—The Secretary of State,

6 upon certification by the Secretary of Health and

7 Human Services, in accordance with section 452(l)

8 of the Social Security Act, that an individual owes

9 arrearages of child support in excess of $5,000 or in

10 an amount exceeding 24 months’ worth of child sup11 port, shall refuse to issue a passport to such individ12 ual, and may revoke, restrict, or limit a passport is13 sued previously to such individual.

14 (2) LIMIT ON LIABILITY.—The Secretary of

15 State shall not be liable to an individual for any ac16 tion with respect to a certification by a State agency

17 under this section.

18 (c) EFFECTIVE DATE.—This section and the amend19 ments made by this section shall become effective October

20 1, 1996.
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1 PART VIII—MEDICAL SUPPORT

2 SEC. 381. TECHNICAL CORRECTION TO ERISA DEFINITION

3 OF MEDICAL CHILD SUPPORT ORDER.

4 (a) IN GENERAL.—Section 609(a)(2)(B) of the Em5 ployee Retirement Income Security Act of 1974 (29

6 U.S.C. 1169(a)(2)(B)) is amended—

7 (1) by striking ‘‘issued by a court of competent

8 jurisdiction’’;

9 (2) in clause (ii) by striking the period and in10 serting a comma; and

11 (3) by adding after clause (ii), the following

12 flush left language:

13 ‘‘if such judgment, decree, or order (I) is issued

14 by a court of competent jurisdiction or (II) is

15 issued by an administrative adjudicator and has

16 the force and effect of law under applicable

17 State law.’’.

18 (b) EFFECTIVE DATE.—

19 (1) IN GENERAL.—The amendments made by

20 this section shall become effective on the date of the

21 enactment of this Act.

22 (2) PLAN AMENDMENTS NOT REQUIRED UNTIL

23 JANUARY 1, 1996.—

24 (A) IN GENERAL.—Any amendment to a

25 plan required to be made by an amendment

26 made by this section shall not be required to be
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1 made before the first plan year beginning on or

2 after January 1, 1996, if—

3 (i) during the period after the date

4 before the date of the enactment of this

5 Act and before such first plan year, the

6 plan is operated in accordance with the re7 quirements of the amendments made by

8 this section; and

9 (ii) such plan amendment applies

10 retroactively to the period after the date

11 before the date of the enactment of this

12 Act and before such first plan year.

13 (B) NO FAILURE FOR COMPLIANCE WITH

14 THIS PARAGRAPH.—A plan shall not be treated

15 as failing to be operated in accordance with the

16 provisions of the plan merely because it oper17 ates in accordance with this paragraph.

18 PART IX—ACCESS AND VISITATION PROGRAMS

19 SEC. 391. GRANTS TO STATES FOR ACCESS AND VISITATION

20 PROGRAMS.

21 Part D of title IV is amended by adding at the end

22 the following new section:

23 ‘‘GRANTS TO STATES FOR ACCESS AND VISITATION

24 PROGRAMS

25 ‘‘SEC. 469A. (a) PURPOSES; AUTHORIZATION OF AP26 PROPRIATIONS.—For purposes of enabling States to es-
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1 tablish and administer programs to support and facilitate

2 absent parents’ access to and visitation of their children,

3 by means of activities including mediation (both voluntary

4 and mandatory), counseling, education, development of

5 parenting plans, visitation enforcement (including mon6 itoring, supervision, and neutral drop-off and pickup), and

7 development of guidelines for visitation and alternative

8 custody arrangements, there are authorized to be appro9 priated $5,000,000 for each of fiscal years 1996 and

10 1997, and $10,000,000 for each succeeding fiscal year.

11 ‘‘(b) PAYMENTS TO STATES.—

12 ‘‘(1) IN GENERAL.—Each State shall be enti13 tled to payment under this section for each fiscal

14 year in an amount equal to its allotment under sub15 section (c) for such fiscal year, to be used for pay16 ment of 90 percent of State expenditures for the

17 purposes specified in subsection (a).

18 ‘‘(2) SUPPLEMENTARY USE.—Payments under

19 this section shall be used by a State to supplement

20 (and not to substitute for) expenditures by the

21 State, for activities specified in subsection (a), at a

22 level at least equal to the level of such expenditures

23 for fiscal year 1994.

24 ‘‘(c) ALLOTMENTS TO STATES.—
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1 ‘‘(1) IN GENERAL.—For purposes of subsection

2 (b), each State shall be entitled (subject to para3 graph (2)) to an amount for each fiscal year bearing

4 the same ratio to the amount authorized to be ap5 propriated pursuant to subsection (a) for such fiscal

6 year as the number of children in the State living

7 with only 1 biological parent bears to the total num8 ber of such children in all States.

9 ‘‘(2) MINIMUM ALLOTMENT.—Allotments to

10 States under paragraph (1) shall be adjusted as nec11 essary to ensure that no State is allotted less than

12 $50,000 for fiscal year 1996 or 1997, or $100,000

13 for any succeeding fiscal year.

14 ‘‘(d) FEDERAL ADMINISTRATION.—The program

15 under this section shall be administered by the Adminis16 tration for Children and Families.

17 ‘‘(e) STATE PROGRAM ADMINISTRATION.—

18 ‘‘(1) IN GENERAL.—Each State may administer

19 the program under this section directly or through

20 grants to or contracts with courts, local public agen21 cies, or nonprofit private entities.

22 ‘‘(2) STATEWIDE PLAN PERMISSIBLE.—State

23 programs under this section may, but need not, be

24 statewide.
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1 ‘‘(3) EVALUATION.—States administering pro2 grams under this section shall monitor, evaluate,

3 and report on such programs in accordance with re4 quirements established by the Secretary.’’.

5 Subtitle B—Effect of Enactment

6 SEC. 395. EFFECTIVE DATES.

7 (a) IN GENERAL.—Except as otherwise specifically

8 provided (but subject to subsections (b) and (c))—

9 (1) provisions of subtitle A requiring enactment

10 or amendment of State laws under section 466 of

11 the Social Security Act, or revision of State plans

12 under section 454 of such Act, shall be effective with

13 respect to periods beginning on and after October 1,

14 1996; and

15 (2) all other provisions of subtitle A shall be16 come effective upon the date of the enactment of

17 this Act.

18 (b) GRACE PERIOD FOR STATE LAW CHANGES.—The

19 provisions of subtitle A shall become effective with respect

20 to a State on the later of—

21 (1) the date specified in subtitle A, or

22 (2) the effective date of laws enacted by the leg23 islature of such State implementing such provisions,

24 but in no event later than the first day of the first cal25 endar quarter beginning after the close of the first regular
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1 session of the State legislature that begins after the date

2 of the enactment of this Act. For purposes of the previous

3 sentence, in the case of a State that has a 2-year legisla4 tive session, each year of such session shall be deemed to

5 be a separate regular session of the State legislature.

6 (c) GRACE PERIOD FOR STATE CONSTITUTIONAL

7 AMENDMENT.—A State shall not be found out of compli8 ance with any requirement enacted by subtitle A if it is

9 unable to comply without amending the State constitution

10 until the earlier of—

11 (1) the date which is 1 year after the effective

12 date of the necessary State constitutional amend13 ment, or

14 (2) the date which is 5 years after the date of

15 the enactment of this Act.

16 SEC. 396. SEVERABILITY.

17 If any provision of subtitle A or the application there18 of to any person or circumstance is held invalid, the inva19 lidity shall not affect other provisions or applications of

20 subtitle A which can be given effect without regard to the

21 invalid provision or application, and to this end the provi22 sions of subtitle A shall be severable.
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1 TITLE IV—SUPPLEMENTAL

2 SECURITY INCOME

3 SEC. 401. REVISED REGULATIONS APPLICABLE TO THE DE4 TERMINATION OF DISABILITY IN INDIVID5 UALS UNDER THE AGE OF 18.

6 (a) REGULATIONS APPLICABLE TO THE DETERMINA7 TION OF DISABILITY IN INDIVIDUALS UNDER THE AGE

8 OF 18.—

9 (1) IN GENERAL.—The Commissioner of Social

10 Security (hereafter in this section referred to as the

11 ‘‘Commissioner’’) is directed to issue revised regula12 tions applicable to the determination of disability in

13 individuals under the age of 18 for purposes of es14 tablishing eligibility for supplemental security in15 come benefits under title XVI of the Social Security

16 Act that ensure that such eligibility is limited to

17 those individuals whose impairments are sufficiently

18 severe as to meet the statutory definition of disabil19 ity contained in section 1614(a)(3)(A) of such Act

20 (42 U.S.C. 1382c(a)(3)(A)).

21 (2) SPECIFIC REQUIREMENTS.—

22 (A) IN GENERAL.—The regulations de23 scribed in paragraph (1) shall provide that an

24 individual under the age of 18 may be deter25 mined to be under a disability only if the indi-
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1 vidual’s impairment or combination of impair2 ments is so severe as to cause, at minimum—

3 (i) a marked limitation in at least 2

4 domains of functioning or development; or

5 (ii) an extreme limitation in at least 1

6 such domain.

7 (B) DOMAIN DEFINED.—As used in sub8 paragraph (A), the term ‘‘domain’’ refers to a

9 broad but, to the maximum extent practicable,

10 discrete area of function or development that

11 can be identified in infancy and traced through

12 an individual’s maturation. Subject to subpara13 graph (C), the Commissioner shall specify do14 mains and describe the age-appropriate activi15 ties and behaviors that characterize each do16 main. Under no circumstance may the Commis17 sioner specify a domain of maladaptive behavior

18 or consider the limitations caused by such be19 havior in more than 1 domain.

20 (C) LIMITATION ON NUMBER OF DO21 MAINS.—For the purpose of making individual22 ized functional assessments in individuals under

23 the age of 18, the Commissioner shall specify a

24 set of domains consisting of fewer domains than
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1 the number in use for such purpose on the date

2 of the enactment of this Act.

3 (3) DEADLINE.—The Commissioner shall issue

4 the regulations required by this subsection not later

5 than the last day of the ninth month that begins

6 after the date of the enactment of this Act.

7 (b) DISABILITY REVIEW REQUIRED FOR CERTAIN

8 RECIPIENTS.—

9 (1) IN GENERAL.—During the period that be10 gins on the effective date of the regulations required

11 by subsection (a) and that ends 2 years after such

12 date, the Commissioner shall redetermine the eligi13 bility for supplemental security income benefits

14 under title XVI of the Social Security Act by reason

15 of disability of each individual receiving such bene16 fits on the basis of a finding of disability made be17 fore the effective date of such regulations. The pro18 visions of section 1614(a)(4) of such Act (42 U.S.C.

19 1382c(a)(4)) shall not apply to redeterminations

20 conducted pursuant to this paragraph. The Commis21 sioner shall except from the requirement of this

22 paragraph any individual whose impairment or com23 bination of impairments was determined to be dis24 abling in accordance with regulations that were not

25 subject to revision pursuant to subsection (a).
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1 (2) NOTICE.—In any case in which the Com2 missioner initiates a review under this subsection,

3 the Commissioner shall notify the individual whose

4 case is to be reviewed in the same manner as re5 quired under section 221(i)(4) of the Social Security

6 Act (42 U.S.C. 421(i)(4)).

7 SEC. 402. DIRECTORY OF SERVICES.

8 Section 1631 (42 U.S.C. 1383) is amended by redes9 ignating the second subsection (n) (relating to notice re10 quirements) as subsection (o) and by adding at the end

11 the following new subsection:

12 ‘‘Directory of Services

13 ‘‘(p) For the purpose of expanding the information

14 base available to members of the public who contact the

15 Social Security Administration, the Commissioner of So16 cial Security shall establish a directory of services for dis17 abled children that are available within the area served

18 by each Social Security Administration office. Each such

19 directory shall include the names of service providers,

20 along with each provider’s address and telephone number,

21 and shall be accessible electronically by all agency person22 nel who provide direct service to the public.’’.
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1 SEC. 403. USE OF STANDARDIZED TESTS AND THEIR EQUIV2 ALENT.

3 Section 1614(a)(3)(H) (42 U.S.C. 1382c(a)(3)(H)) is

4 amended—

5 (1) by inserting ‘‘(i)’’ after ‘‘(H)’’; and

6 (2) by adding after and below the end the

7 following:

8 ‘‘(ii) In making any determination under this

9 title with respect to the disability of an individual

10 who is under the age of 18, the Commissioner shall

11 use—

12 ‘‘(I) standardized tests that provide meas13 ures of childhood development or functioning,

14 or

15 ‘‘(II) criteria of childhood development or

16 function that are equivalent to the findings of

17 a standardized test,

18 whenever such tests or criteria are available and the

19 Commissioner determines their use to be appro20 priate.’’.

21 SEC. 404. GRADUATED BENEFITS FOR ADDITIONAL CHIL22 DREN.

23 (a) IN GENERAL.—Section 1611(b) of the Social Se24 curity Act (42 U.S.C. 1382(b)) is amended by adding at

25 the end the following new paragraph:
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1 ‘‘(3)(A) The benefit under this title for each eligible

2 blind or disabled individual as determined pursuant to sec3 tion 1611(a)(1) who—

4 ‘‘(i) is a child under the age of 18,

5 ‘‘(ii) lives in the same household as 1 or more

6 persons who are also eligible blind or disabled chil7 dren under the age of 18, and

8 ‘‘(iii) does not live in a group or foster home,

9 shall be equal to the applicable percentage of the amount

10 in section 1611(b)(1), reduced by the amount of any in11 come of such child, including income deemed to such child

12 under section 1614(f)(2).

13 ‘‘(B) For purposes of this paragraph, the applicable

14 percentage shall be determined under the following table:

The applicable

percentage for each

‘‘If the household has: eligible child is:

2 eligible children .................................................................. 90 percent

3 eligible children .................................................................. 80 percent

4 eligible children .................................................................. 70 percent

5 eligible children .................................................................. 65 percent

6 eligible children .................................................................. 60 percent

7 eligible children .................................................................. 55 percent

8 eligible children .................................................................. 50 percent

9 eligible children or more .................................................... 45 percent

15 ‘‘(C) For purposes of this paragraph, the applicable

16 household size shall be determined by the number of eligi17 ble blind and disabled children under the age of 18 in such

18 household whose countable income and resources do not

19 exceed the limits specified in section 1611(a)(1).’’.
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1 (b) PRESERVATION OF MEDICAID ELIGIBILITY.—

2 Section 1634 (42 U.S.C. 1383c) is amended by adding

3 at the end the following new subsection:

4 ‘‘(f) Any child under the age of 18 who would be eligi5 ble for a payment under this title but for the limitation

6 on payment amount imposed by section 1611(b)(3) shall

7 be deemed receiving such benefit for purposes of establish8 ing such child’s eligibility for medical assistance under a

9 State plan approved under title XIX of this Act.’’.

10 (c) CONFORMING AMENDMENT.—Section 1618(e)

11 (42 U.S.C. 1382g(e)) is amended by adding at the end

12 the following new paragraph:

13 ‘‘(3) In determining whether the requirements of

14 paragraph (1) of this subsection are met, the difference

15 between the benefit amounts authorized by section

16 1611(b)(1) and the benefits authorized after the applica17 tion of section 1611(b)(3) shall be disregarded.

18 ‘‘(4) For purposes of determining compliance with

19 section 1618(b), decreases or increases in a State’s ex20 penditures in a 12-month period due solely to reductions

21 in amounts of benefits paid pursuant to section

22 1611(b)(3) shall be disregarded.’’.

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

24 this section shall take effect—
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1 (1) on the date of the enactment of this Act,

2 with respect to payments made on the basis of deter3 minations of eligibility made on or after such date,

4 and

5 (2) 180 days after the date of the enactment of

6 this Act, with respect to payments made for months

7 beginning after such date on the basis of determina8 tions of eligibility made before the date of the enact9 ment of this Act.

10 SEC. 405. TREATMENT REQUIREMENTS FOR DISABLED IN11 DIVIDUALS UNDER THE AGE OF 18.

12 (a) IN GENERAL.—Section 1631(a)(2) (42 U.S.C.

13 1383(a)(2)) is amended—

14 (1) by redesignating subparagraphs (E) and

15 (F) as subparagraphs (F) and (G), respectively; and

16 (2) by inserting after subparagraph (D) the fol17 lowing new subparagraph:

18 ‘‘(E)(i) Not later than 3 months after the Commis19 sioner determines that an individual under the age of 18

20 is eligible for benefits under this title by reason of disabil21 ity (and periodically thereafter, as the Commissioner may

22 require), the representative payee of such individual shall

23 file with the State agency that makes disability determina24 tions on behalf of the Commissioner of Social Security in
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1 the State in which such individual resides, a copy of the

2 treatment plan required by clause (ii).

3 ‘‘(ii) The treatment plan required by this clause shall

4 be developed by the individual’s treating physician or other

5 medical provider, or if approved by the Commissioner,

6 other service provider, and shall describe the services that

7 such physician or provider determines is appropriate for

8 the treatment of such individual’s impairment or combina9 tion of impairments. Such plan shall be in such form and

10 contain such information as the Commissioner may pre11 scribe.

12 ‘‘(iii) The representative payee of any individual de13 scribed in clause (i) shall provide evidence of adherence

14 to the treatment plan described in clause (ii) at the time

15 of any redetermination of eligibility conducted pursuant

16 to section 1614(a)(3)(G)(ii), and at such other time as the

17 Commissioner may prescribe.

18 ‘‘(iv) The failure of a representative payee to comply

19 without good cause with the requirements of clause (i) or

20 (iii) shall constitute misuse of benefits to which subpara21 graph (A)(iii) (but not subparagraph (F)) shall apply. In

22 providing for an alternative representative payee as re23 quired by subparagraph (A)(iii), the Commissioner shall

24 give preference to the State agency that administers the

25 State plan approved under title XIX for the State in which
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1 the individual described in clause (i) resides or any other

2 State agency designated by the State for such responsibil3 ity, unless the Commissioner determines that selection of

4 another organization or person would be appropriate. Any

5 such State agency that serves as a representative payee

6 shall be a ‘qualified organization’ for purposes of subpara7 graph (D) of this paragraph.

8 ‘‘(v) This subparagraph shall not apply to the rep9 resentative payee of any individual with respect to whom

10 the Commissioner determines such application would be

11 inappropriate or unnecessary. In making such determina12 tions, the Commissioner shall take into consideration the

13 nature of the individual’s impairment (or combination of

14 impairments) and the availability of treatment for such

15 impairment (or impairments). Section 1631(c) shall not

16 apply to a finding by the Commissioner that the require17 ments of this subparagraph should not apply to an individ18 ual’s representative payee.’’.

19 (b) ACCESS TO MEDICAID RECORDS.—

20 (1) REQUIREMENT TO FURNISH INFORMA21 TION.—Section 1902(a) (42 U.S.C. 1396a(a)) is

22 amended—

23 (A) by striking ‘‘and’’ at the end of para24 graph (61);
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1 (B) by striking the period at the end of

2 paragraph (62) and inserting ‘‘; and’’; and

3 (C) by adding after paragraph (62) the fol4 lowing new paragraph:

5 ‘‘(63) provide that the State agency that ad6 ministers the plan described in this section shall

7 make available to the Commissioner of Social Secu8 rity such information as the Commissioner may re9 quest in connection with the verification of informa10 tion furnished to the Commissioner by a representa11 tive payee pursuant to section 1631(a)(2)(E)(iii).’’.

12 (2) REIMBURSEMENT OF STATE COSTS.—Sec13 tion 1633 (42 U.S.C. 1383b) is amended by adding

14 at the end the following new subsection:

15 ‘‘(d) The Commissioner of Social Security shall reim16 burse a State for the costs of providing information pursu17 ant to section 1902(a)(63) from funds available for carry18 ing out this title.’’.

19 (c) REPORT TO THE CONGRESS.—Not later than the

20 last day of the thirty-sixth month beginning after the date

21 of the enactment of this Act, the Inspector General of the

22 Social Security Administration shall report to the Commit23 tee on Ways and Means of the House of Representatives

24 and the Committee on Finance of the Senate on the imple25 mentation of this section.
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1 (d) EFFECTIVE DATE.—This section shall take effect

2 on the first day of the twelfth month that begins after

3 the date of the enactment of this Act.

4 SEC. 406. SPECIAL ACCOUNTS FOR INDIVIDUALS UNDER

5 THE AGE OF 18.

6 (a) REQUIREMENT TO ESTABLISH ACCOUNT.—Sec7 tion 1631(a)(2) (42 U.S.C. 1383(a)(2)), as amended by

8 section 405(a), is amended—

9 (1) by redesignating subparagraphs (F) and

10 (G) as subparagraphs (G) and (H), respectively; and

11 (2) by inserting after subparagraph (E) the fol12 lowing new subparagraph:

13 ‘‘(F)(i)(I) Each representative payee of an eligible in14 dividual under the age of 18 who is eligible for the pay15 ment of benefits described in subclause (II) shall establish

16 on behalf of such individual an account in a financial insti17 tution into which such benefits shall be paid, and shall

18 thereafter maintain such account for use in accordance

19 with clause (ii).

20 ‘‘(II) Benefits described in this subclause are past21 due monthly benefits under this title (which, for purposes

22 of this subclause, include State supplementary payments

23 made by the Commissioner pursuant to an agreement

24 under section 1616 or section 212(b) of Public Law 93–

25 66) in an amount (after any withholding by the Commis-
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1 sioner for reimbursement to a State for interim assistance

2 under subsection (g)) that exceeds the product of—

3 ‘‘(aa) 6, and

4 ‘‘(bb) the maximum monthly benefit payable

5 under this title to an eligible individual.

6 ‘‘(ii)(I) A representative payee may use funds in the

7 account established under clause (i) to pay for allowable

8 expenses described in subclause (II).

9 ‘‘(II) An allowable expense described in this subclause

10 is an expense for—

11 ‘‘(aa) education or job skills training;

12 ‘‘(bb) personal needs assistance;

13 ‘‘(cc) special equipment;

14 ‘‘(dd) housing modification;

15 ‘‘(ee) medical treatment;

16 ‘‘(ff) therapy or rehabilitation; or

17 ‘‘(gg) any other item or service that the Com18 missioner determines to be appropriate;

19 provided that such expense benefits such individual and,

20 in the case of an expense described in division (cc), (dd),

21 (ff), or (gg), is related to the impairment (or combination

22 of impairments) of such individual.

23 ‘‘(III) The use of funds from an account established

24 under clause (i) in any manner not authorized by this

25 clause—
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1 ‘‘(aa) by a representative payee shall constitute

2 misuse of benefits for all purposes of this paragraph,

3 and any representative payee who knowingly misuses

4 benefits from such an account shall be liable to the

5 Commissioner in an amount equal to the total

6 amount of such misused benefits; and

7 ‘‘(bb) by an eligible individual who is his or her

8 own representative payee shall be considered an

9 overpayment subject to recovery under subsection

10 (b).

11 ‘‘(IV) This clause shall continue to apply to funds in

12 the account after the child has reached age 18, regardless

13 of whether benefits are paid directly to the beneficiary or

14 through a representative payee.

15 ‘‘(iii) The representative payee may deposit into the

16 account established pursuant to clause (i)—

17 ‘‘(I) past-due benefits payable to the eligible in18 dividual in an amount less than that specified in

19 clause (i)(II), and

20 ‘‘(II) any other funds representing an

21 underpayment under this title to such individual,

22 provided that the amount of such underpayment is

23 equal to or exceeds the maximum monthly benefit

24 payable under this title to an eligible individual.
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1 ‘‘(iv) The Commissioner of Social Security shall es2 tablish a system for accountability monitoring whereby

3 such representative payee shall report, at such time and

4 in such manner as the Commissioner shall require, on ac5 tivity respecting funds in the account established pursuant

6 to clause (i).’’.

7 (b) EXCLUSION FROM RESOURCES.—Section

8 1613(a) (42 U.S.C. 1382b(a)) is amended—

9 (1) in paragraph (9), by striking ‘‘; and’’ and

10 inserting a semicolon;

11 (2) in the first paragraph (10), by striking the

12 period and inserting a semicolon;

13 (3) by redesignating the second paragraph (10)

14 as paragraph (11), and by striking the period and

15 inserting ‘‘; and’’; and

16 (4) by adding at the end the following:

17 ‘‘(12) the assets and accrued interest or other

18 earnings of any account established and maintained

19 in accordance with section 1631(a)(2)(F).’’.

20 (c) EXCLUSION FROM INCOME.—Section 1612(b) (42

21 U.S.C. 1382a(b)) is amended—

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

23 (19);

24 (2) by striking the period at the end of para25 graph (20) and inserting ‘‘; and’’; and
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1 (3) by adding at the end the following new

2 paragraph:

3 ‘‘(21) the interest or other earnings on any ac4 count established and maintained in accordance with

5 section 1631(a)(2)(F).’’.

6 (d) CONFORMING AMENDMENT.—Section

7 1631(a)(2)(E)(iv) of the Act (as added by section 405(a))

8 is amended by striking ‘‘subparagraph (F)’’ and inserting

9 ‘‘subparagraph (G)’’.

10 (e) EFFECTIVE DATE.—This section shall take effect

11 on the date which is 180 days after the date of the enact12 ment of this Act.

13 SEC. 407. CONTINUING DISABILITY REVIEWS FOR INDIVID14 UALS UNDER THE AGE OF 18.

15 (a) IN GENERAL.—Section 1614(a)(3) (42 U.S.C.

16 1382c(a)(3)) is amended by redesignating subparagraph

17 (H) as subparagraph (I) and by inserting after subpara18 graph (G) the following new subparagraph—

19 ‘‘(H)(i)(I) Except as provided in subclauses (II),

20 (III), and (IV), the Commissioner of Social Security shall

21 redetermine the eligibility for benefits under this title by

22 reason of disability of each individual under the age of

23 18 at least once every 3 years.

24 ‘‘(II) In any case in which the Commissioner does not

25 expect improvement in the condition of such an individual,
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•S 828 IS

1 the redetermination of eligibility for such benefits shall be

2 made at such times as the Commissioner determines to

3 be appropriate.

4 ‘‘(III) In any case in which the Commissioner deter5 mines that the condition of such an individual may be ex6 pected to improve within 3 years, such redetermination

7 shall be made at more frequent intervals.

8 ‘‘(IV) The Commissioner shall redetermine the eligi9 bility for benefits under this title by reason of disability

10 of each individual whose low birth weight is a contributing

11 factor material to the Commissioner’s determination that

12 the individual is disabled. Such redetermination shall be

13 made not later than 18 months after such individual was

14 initially determined to be eligible for such benefits on the

15 basis, in whole or in part, of low birth weight.

16 ‘‘(ii) The Commissioner shall determine the most

17 cost-effective means for complying with the requirements

18 of this subparagraph.

19 ‘‘(iii) The provisions of paragraph (4) shall apply to

20 all redeterminations required by this subparagraph.’’.

21 (b) CONFORMING AMENDMENT.—Section 208(a) of

22 the Social Security Independence and Program Improve23 ments Act of 1994 is amended by striking ‘‘100,000’’ and

24 inserting ‘‘80,000 adult’’.
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1 SEC. 408. COORDINATION OF SERVICES FOR SSI CHILDREN.

2 (a) IN GENERAL.—Section 505(a) (42 U.S.C.

3 705(a)) is amended—

4 (1) in paragraph 5—

5 (A) by striking ‘‘and’’ at the end of sub6 paragraph (E);

7 (B) by striking the period at the end of

8 subparagraph (F) and inserting ‘‘; and’’; and

9 (C) by inserting after subparagraph (F)

10 the following new subparagraph:

11 ‘‘(G) the agency administering the State’s

12 program under this title shall be responsible for

13 developing a care coordination plan for each

14 child receiving benefits under title XVI on the

15 basis of disability to assure that such child has

16 access to available medical and other support

17 services, that services are provided in an effi18 cient and effective manner, and that gaps in the

19 provision of services are identified.’’; and

20 (2) by adding at the end the following new sub21 section:

22 ‘‘(c) For purposes of subsection (a)(5)(G), the Sec23 retary, the Secretary of Education, and the Commissioner

24 of Social Security shall take such steps as may be nec25 essary, through issuance of regulations, guidelines, or such

26 other means as they may determine, to assure that, where
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1 appropriate, the State agency administering title XIX, the

2 State Department of Mental Health, the State Disability

3 Determination Service that makes determinations under

4 title II, the State Vocational Rehabilitation agency, the

5 State Developmental Disabilities Council, and the State

6 Department of Education—

7 ‘‘(1) assist the agency administering the State’s

8 program under this title in the development of the

9 child’s care coordination plan;

10 ‘‘(2) participate in the planning and delivery of

11 the services specified in the care coordination plan;

12 and

13 ‘‘(3) assist such agency in providing to the Sec14 retary for each fiscal year information on—

15 ‘‘(A) the number of children receiving ben16 efits under title XVI who were referred to such

17 agency for services,

18 ‘‘(B) the number of such children who

19 were referred who were served,

20 ‘‘(C) the services provided (including inten21 sity of services, duration of services, types of

22 providers, and costs of services),

23 ‘‘(D) the number of children referred to

24 other agencies or departments for services, and
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1 ‘‘(E) the number of care coordination

2 plans developed during such fiscal year.’’.

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

4 this section shall apply to fiscal years beginning after Sep5 tember 30, 1995.

6 TITLE V—MISCELLANEOUS

7 PROVISIONS

8 SEC. 501. REVISION OF TAX RULES ON EXPATRIATION.

9 (a) IN GENERAL.—Subpart A of part II of sub10 chapter N of chapter 1 of the Internal Revenue Code of

11 1986 is amended by inserting after section 877 the follow12 ing new section:

13 ‘‘SEC. 877A. TAX RESPONSIBILITIES OF EXPATRIATION.

14 ‘‘(a) GENERAL RULES.—For purposes of this sub15 title—

16 ‘‘(1) MARK TO MARKET.—Except as provided in

17 subsection (f)(2), all property held by an expatriate

18 immediately before the expatriation date shall be

19 treated as sold at such time for its fair market

20 value.

21 ‘‘(2) RECOGNITION OF GAIN OR LOSS.—In the

22 case of any sale under paragraph (1)—

23 ‘‘(A) notwithstanding any other provision

24 of this title, any gain arising from such sale

25 shall be taken into account for the taxable year
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1 of the sale unless such gain is excluded from

2 gross income under part III of subchapter B,

3 and

4 ‘‘(B) any loss arising from such sale shall

5 be taken into account for the taxable year of

6 the sale to the extent otherwise provided by this

7 title, except that section 1091 shall not apply

8 (and section 1092 shall apply) to any such loss.

9 ‘‘(3) ELECTION TO CONTINUE TO BE TAXED AS

10 UNITED STATES CITIZEN.—

11 ‘‘(A) IN GENERAL.—If an expatriate elects

12 the application of this paragraph with respect

13 to any property—

14 ‘‘(i) this section (other than this para15 graph) shall not apply to such property,

16 but

17 ‘‘(ii) such property shall be subject to

18 tax under this title in the same manner as

19 if the individual were a United States

20 citizen.

21 ‘‘(B) LIMITATION ON AMOUNT OF ESTATE,

22 GIFT, AND GENERATION-SKIPPING TRANSFER

23 TAXES.—The aggregate amount of taxes im24 posed under subtitle B with respect to any

25 transfer of property by reason of an election
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1 under subparagraph (A) shall not exceed the

2 amount of income tax which would be due if the

3 property were sold for its fair market value im4 mediately before the time of the transfer or

5 death (taking into account the rules of sub6 section (a)(2)).

7 ‘‘(C) REQUIREMENTS.—Subparagraph (A)

8 shall not apply to an individual unless the indi9 vidual—

10 ‘‘(i) provides security for payment of

11 tax in such form and manner, and in such

12 amount, as the Secretary may require,

13 ‘‘(ii) consents to the waiver of any

14 right of the individual under any treaty of

15 the United States which would preclude as16 sessment or collection of any tax which

17 may be imposed by reason of this para18 graph, and

19 ‘‘(iii) complies with such other re20 quirements as the Secretary may prescribe.

21 ‘‘(D) ELECTION.—An election under sub22 paragraph (A) shall apply only to the property

23 described in the election and, once made, shall

24 be irrevocable.
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1 ‘‘(b) EXCLUSION FOR CERTAIN GAIN.—The amount

2 which would (but for this subsection) be includible in the

3 gross income of any individual by reason of subsection (a)

4 shall be reduced (but not below zero) by $600,000.

5 ‘‘(c) PROPERTY TREATED AS HELD.—For purposes

6 of this section, except as otherwise provided by the Sec7 retary, an individual shall be treated as holding—

8 ‘‘(1) all property which would be includible in

9 his gross estate under chapter 11 if such individual

10 were a citizen or resident of the United States (with11 in the meaning of chapter 11) who died at the time

12 the property is treated as sold,

13 ‘‘(2) any other interest in a trust which the in14 dividual is treated as holding under the rules of sub15 section (f)(1), and

16 ‘‘(3) any other interest in property specified by

17 the Secretary as necessary or appropriate to carry

18 out the purposes of this section.

19 ‘‘(d) EXCEPTIONS.—The following property shall not

20 be treated as sold for purposes of this section:

21 ‘‘(1) UNITED STATES REAL PROPERTY INTER22 ESTS.—Any United States real property interest (as

23 defined in section 897(c)(1)), other than stock of a

24 United States real property holding corporation
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1 which does not, on the expatriation date, meet the

2 requirements of section 897(c)(2).

3 ‘‘(2) INTEREST IN CERTAIN RETIREMENT

4 PLANS.—

5 ‘‘(A) IN GENERAL.—Any interest in a

6 qualified retirement plan (as defined in section

7 4974(c)), other than any interest attributable to

8 contributions which are in excess of any limita9 tion or which violate any condition for tax-fa10 vored treatment.

11 ‘‘(B) FOREIGN PENSION PLANS.—

12 ‘‘(i) IN GENERAL.—Under regulations

13 prescribed by the Secretary, interests in

14 foreign pension plans or similar retirement

15 arrangements or programs.

16 ‘‘(ii) LIMITATION.—The value of prop17 erty which is treated as not sold by reason

18 of this subparagraph shall not exceed

19 $500,000.

20 ‘‘(e) DEFINITIONS.—For purposes of this section—

21 ‘‘(1) EXPATRIATE.—The term ‘expatriate’

22 means—

23 ‘‘(A) any United States citizen who relin24 quishes his citizenship, or
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1 ‘‘(B) any long-term resident of the United

2 States who—

3 ‘‘(i) ceases to be a lawful permanent

4 resident of the United States (within the

5 meaning of section 7701(b)(6)), or

6 ‘‘(ii) commences to be treated as a

7 resident of a foreign country under the

8 provisions of a tax treaty between the

9 United States and the foreign country and

10 who does not waive the benefits of such

11 treaty applicable to residents of the foreign

12 country.

13 An individual shall not be treated as an expatriate

14 for purposes of this section by reason of the individ15 ual relinquishing United States citizenship before attaining the age of 181 16 ⁄2 if the individual has been a

17 resident of the United States (as defined in section

18 7701(b)(1)(A)(ii)) for less than 5 taxable years be19 fore the date of relinquishment.

20 ‘‘(2) EXPATRIATION DATE.—The term ‘expa21 triation date’ means—

22 ‘‘(A) the date an individual relinquishes

23 United States citizenship, or
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1 ‘‘(B) in the case of a long-term resident of

2 the United States, the date of the event de3 scribed in clause (i) or (ii) of paragraph (1)(B).

4 ‘‘(3) RELINQUISHMENT OF CITIZENSHIP.—A

5 citizen shall be treated as relinquishing his United

6 States citizenship on the earliest of—

7 ‘‘(A) the date the individual renounces his

8 United States nationality before a diplomatic or

9 consular officer of the United States pursuant

10 to paragraph (5) of section 349(a) of the Immi11 gration and Nationality Act (8 U.S.C.

12 1481(a)(5)),

13 ‘‘(B) the date the individual furnishes to

14 the United States Department of State a signed

15 statement of voluntary relinquishment of Unit16 ed States nationality confirming the perform17 ance of an act of expatriation specified in para18 graph (1), (2), (3), or (4) of section 349(a) of

19 the Immigration and Nationality Act (8 U.S.C.

20 1481(a)(1)–(4)),

21 ‘‘(C) the date the United States Depart22 ment of State issues to the individual a certifi23 cate of loss of nationality, or
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1 ‘‘(D) the date a court of the United States

2 cancels a naturalized citizen’s certificate of nat3 uralization.

4 Subparagraph (A) or (B) shall not apply to any indi5 vidual unless the renunciation or voluntary relin6 quishment is subsequently approved by the issuance

7 to the individual of a certificate of loss of nationality

8 by the United States Department of State.

9 ‘‘(4) LONG-TERM RESIDENT.—

10 ‘‘(A) IN GENERAL.—The term ‘long-term

11 resident’ means any individual (other than a

12 citizen of the United States) who is a lawful

13 permanent resident of the United States in at

14 least 8 taxable years during the period of 15

15 taxable years ending with the taxable year dur16 ing which the sale under subsection (a)(1) is

17 treated as occurring. For purposes of the pre18 ceding sentence, an individual shall not be

19 treated as a lawful permanent resident for any

20 taxable year if such individual is treated as a

21 resident of a foreign country for the taxable

22 year under the provisions of a tax treaty be23 tween the United States and the foreign coun24 try and does not waive the benefits of such
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1 treaty applicable to residents of the foreign

2 country.

3 ‘‘(B) SPECIAL RULE.—For purposes of

4 subparagraph (A), there shall not be taken into

5 account—

6 ‘‘(i) any taxable year during which

7 any prior sale is treated under subsection

8 (a)(1) as occurring, or

9 ‘‘(ii) any taxable year prior to the tax10 able year referred to in clause (i).

11 ‘‘(f) SPECIAL RULES APPLICABLE TO BENE12 FICIARIES’ INTERESTS IN TRUST.—

13 ‘‘(1) DETERMINATION OF BENEFICIARIES’ IN14 TEREST IN TRUST.—For purposes of this section—

15 ‘‘(A) GENERAL RULE.—A beneficiary’s in16 terest in a trust shall be based upon all relevant

17 facts and circumstances, including the terms of

18 the trust instrument and any letter of wishes or

19 similar document, historical patterns of trust

20 distributions, and the existence of and functions

21 performed by a trust protector or any similar

22 advisor.

23 ‘‘(B) SPECIAL RULE.—The remaining in24 terests in the trust not determined under sub25 paragraph (A) to be held by any beneficiary
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1 shall be allocated first to the grantor, if a bene2 ficiary, and then to other beneficiaries under

3 rules prescribed by the Secretary similar to the

4 rules of intestate succession.

5 ‘‘(C) CONSTRUCTIVE OWNERSHIP.—If a

6 beneficiary of a trust is a corporation, partner7 ship, trust, or estate, the shareholders, part8 ners, or beneficiaries shall be deemed to be the

9 trust beneficiaries for purposes of this section.

10 ‘‘(D) TAXPAYER RETURN POSITION.—A

11 taxpayer shall clearly indicate on its income tax

12 return—

13 ‘‘(i) the methodology used to deter14 mine that taxpayer’s trust interest under

15 this section, and

16 ‘‘(ii) if the taxpayer knows (or has

17 reason to know) that any other beneficiary

18 of such trust is using a different methodol19 ogy to determine such beneficiary’s trust

20 interest under this section.

21 ‘‘(2) DEEMED SALE IN CASE OF TRUST INTER22 EST.—If an individual who is an expatriate is treat23 ed under paragraph (1) as holding an interest in a

24 trust for purposes of this section—
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1 ‘‘(A) the individual shall not be treated as

2 having sold such interest,

3 ‘‘(B) such interest shall be treated as a

4 separate share in the trust, and

5 ‘‘(C)(i) such separate share shall be treat6 ed as a separate trust consisting of the assets

7 allocable to such share,

8 ‘‘(ii) the separate trust shall be treated as

9 having sold its assets immediately before the ex10 patriation date for their fair market value and

11 as having distributed all of its assets to the in12 dividual as of such time, and

13 ‘‘(iii) the individual shall be treated as hav14 ing recontributed the assets to the separate

15 trust.

16 Subsection (a)(2) shall apply to any income, gain, or

17 loss of the individual arising from a distribution de18 scribed in subparagraph (C)(ii).

19 ‘‘(g) TERMINATION OF DEFERRALS, ETC.—On the

20 date any property held by an individual is treated as sold

21 under subsection (a), notwithstanding any other provision

22 of this title—

23 ‘‘(1) any period during which recognition of in24 come or gain is deferred shall terminate, and
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1 ‘‘(2) any extension of time for payment of tax

2 shall cease to apply and the unpaid portion of such

3 tax shall be due and payable at the time and in the

4 manner prescribed by the Secretary.

5 ‘‘(h) RULES RELATING TO PAYMENT OF TAX.—

6 ‘‘(1) IMPOSITION OF TENTATIVE TAX.—

7 ‘‘(A) IN GENERAL.—If an individual is re8 quired to include any amount in gross income

9 under subsection (a) for any taxable year, there

10 is hereby imposed, immediately before the expa11 triation date, a tax in an amount equal to the

12 amount of tax which would be imposed if the

13 taxable year were a short taxable year ending

14 on the expatriation date.

15 ‘‘(B) DUE DATE.—The due date for any

16 tax imposed by subparagraph (A) shall be the

17 90th day after the expatriation date.

18 ‘‘(C) TREATMENT OF TAX.—Any tax paid

19 under subparagraph (A) shall be treated as a

20 payment of the tax imposed by this chapter for

21 the taxable year to which subsection (a) applies.

22 ‘‘(2) DEFERRAL OF TAX.—The payment of any

23 tax attributable to amounts included in gross income

24 under subsection (a) may be deferred to the same

25 extent, and in the same manner, as any tax imposed
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1 by chapter 11, except that the Secretary may extend

2 the period for extension of time for paying tax under

3 section 6161 to such number of years as the Sec4 retary determines appropriate.

5 ‘‘(3) RULES RELATING TO SECURITY INTER6 ESTS.—

7 ‘‘(A) ADEQUACY OF SECURITY INTER8 ESTS.—In determining the adequacy of any se9 curity to be provided under this section, the

10 Secretary may take into account the principles

11 of section 2056A.

12 ‘‘(B) SPECIAL RULE FOR TRUST.—If a

13 taxpayer is required by this section to provide

14 security in connection with any tax imposed by

15 reason of this section with respect to the hold16 ing of an interest in a trust and any trustee of

17 such trust is an individual citizen of the United

18 States or a domestic corporation, such trustee

19 shall be required to provide such security upon

20 notification by the taxpayer of such require21 ment.

22 ‘‘(i) COORDINATION WITH ESTATE AND GIFT

23 TAXES.—If subsection (a) applies to property held by an

24 individual for any taxable year and—
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1 ‘‘(1) such property is includible in the gross es2 tate of such individual solely by reason of section

3 2107, or

4 ‘‘(2) section 2501 applies to a transfer of such

5 property by such individual solely by reason of sec6 tion 2501(a)(3),

7 then there shall be allowed as a credit against the addi8 tional tax imposed by section 2101 or 2501, whichever is

9 applicable, solely by reason of section 2107 or 2501(a)(3)

10 an amount equal to the increase in the tax imposed by

11 this chapter for such taxable year by reason of this sec12 tion.

13 ‘‘(j) REGULATIONS.—The Secretary shall prescribe

14 such regulations as may be necessary or appropriate to

15 carry out the purposes of this section, including regula16 tions to prevent double taxation by ensuring that—

17 ‘‘(1) appropriate adjustments are made to basis

18 to reflect gain recognized by reason of subsection (a)

19 and the exclusion provided by subsection (b),

20 ‘‘(2) no interest in property is treated as held

21 for purposes of this section by more than one tax22 payer, and

23 ‘‘(3) any gain by reason of a deemed sale under

24 subsection (a) of an interest in a corporation, part25 nership, trust, or estate is reduced to reflect that
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1 portion of such gain which is attributable to an in2 terest in a trust which a shareholder, partner, or

3 beneficiary is treated as holding directly under sub4 section (f)(1)(C).

5 ‘‘(k) CROSS REFERENCE.—

‘‘For income tax treatment of individuals who terminate United States citizenship, see section

7701(a)(47).’’.

6 (b) DEFINITION OF TERMINATION OF UNITED

7 STATES CITIZENSHIP.—Section 7701(a) of the Internal

8 Revenue Code of 1986 is amended by adding at the end

9 the following new paragraph:

10 ‘‘(47) TERMINATION OF UNITED STATES CITI11 ZENSHIP.—An individual shall not cease to be treat12 ed as a United States citizen before the date on

13 which the individual’s citizenship is treated as relin14 quished under section 877A(e)(3).’’.

15 (c) CONFORMING AMENDMENTS.—

16 (1) Section 877 of the Internal Revenue Code

17 of 1986 is amended by adding at the end the follow18 ing new subsection:

19 ‘‘(f) APPLICATION.—This section shall not apply to

20 any individual who relinquishes (within the meaning of

21 section 877A(e)(3)) United States citizenship on or after

22 February 6, 1995.’’.

23 (2) Section 2107(c) of such Code is amended by

24 adding at the end the following new paragraph:
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1 ‘‘(3) CROSS REFERENCE.—For credit against

2 the tax imposed by subsection (a) for expatriation

3 tax, see section 877A(i).’’.

4 (3) Section 2501(a)(3) of such Code is amended

5 by adding at the end the following new flush sen6 tence:

7 ‘‘For credit against the tax imposed under this sec8 tion by reason of this paragraph, see section

9 877A(i).’’.

10 (4) Section 6851 of such Code is amended by

11 striking subsection (d) and by redesignating sub12 section (e) as subsection (d).

13 (5) Paragraph (10) of section 7701(b) of such

14 Code is amended by adding at the end the following

15 new sentence: ‘‘This paragraph shall not apply to

16 any long-term resident of the United States who is

17 an expatriate (as defined in section 877A(e)(1)).’’.

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

19 for subpart A of part II of subchapter N of chapter 1

20 of the Internal Revenue Code of 1986 is amended by in21 serting after the item relating to section 877 the following

22 new item:

‘‘Sec. 877A. Tax responsibilities of expatriation.’’.

23 (e) EFFECTIVE DATE.—

24 (1) IN GENERAL.—The amendments made by

25 this section shall apply to expatriates (within the
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1 meaning of section 877A(e) of the Internal Revenue

2 Code of 1986, as added by this section) whose expa3 triation date (as so defined) occurs on or after Feb4 ruary 6, 1995.

5 (2) DUE DATE FOR TENTATIVE TAX.—The due

6 date under section 877A(h)(1)(B) of such Code shall

7 in no event occur before the 90th day after the date

8 of the enactment of this Act.

9 SEC. 502. BASIS OF ASSETS OF NONRESIDENT ALIEN INDI10 VIDUALS BECOMING CITIZENS OR RESI11 DENTS.

12 (a) IN GENERAL.—Part IV of subchapter O of chap13 ter 1 of the Internal Revenue Code of 1986 (relating to

14 special rules for gain or loss on disposition of property)

15 is amended by redesignating section 1061 as section 1062

16 and by inserting after section 1060 the following new sec17 tion:

18 ‘‘SEC. 1061. BASIS OF ASSETS OF NONRESIDENT ALIEN INDI19 VIDUALS BECOMING CITIZENS OR RESI20 DENTS.

21 ‘‘(a) GENERAL RULE.—If a nonresident alien individ22 ual becomes a citizen or resident of the United States,

23 gain or loss on the disposition of any property held on

24 the date the individual becomes such a citizen or resident

25 shall be determined by substituting, as of the applicable
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1 date, the fair market value of such property (on the appli2 cable date) for its cost basis.

3 ‘‘(b) EXCEPTION FOR DEPRECIATION.—Any deduc4 tion under this chapter for depreciation, depletion, or am5 ortization shall be determined without regard to the appli6 cation of this section.

7 ‘‘(c) DEFINITIONS AND SPECIAL RULES.—For pur8 poses of this section—

9 ‘‘(1) APPLICABLE DATE.—The term ‘applicable

10 date’ means, with respect to any property to which

11 subsection (a) applies, the earlier of—

12 ‘‘(A) the date the individual becomes a citi13 zen or resident of the United States, or

14 ‘‘(B) the date the property first becomes

15 subject to tax under this subtitle by reason of

16 being used in a United States trade or business

17 or by reason of becoming a United States real

18 property interest (within the meaning of section

19 897(c)(1)).

20 ‘‘(2) RESIDENT.—The term ‘resident’ does not

21 include an individual who is treated as a resident of

22 a foreign country under the provisions of a tax trea23 ty between the United States and a foreign country

24 and who does not waive the benefits of such treaty

25 applicable to residents of the foreign country.
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1 ‘‘(3) TRUSTS.—A trust shall not be treated as

2 an individual.

3 ‘‘(4) ELECTION NOT TO HAVE SECTION

4 APPLY.—An individual may elect not to have this

5 section apply solely for purposes of determining gain

6 with respect to any property. Such election shall

7 apply only to property specified in the election and,

8 once made, shall be irrevocable.

9 ‘‘(5) SECTION ONLY TO APPLY ONCE.—This

10 section shall apply only with respect to the first time

11 the individual becomes either a citizen or resident of

12 the United States.

13 ‘‘(d) REGULATIONS.—The Secretary shall prescribe

14 regulations for purposes of this section, including regula15 tions—

16 ‘‘(1) for application of this section in the case

17 of property which consists of a direct or indirect in18 terest in a trust, and

19 ‘‘(2) providing look-thru rules in the case of any

20 indirect interest in any United States real property

21 interest (within the meaning of section 897(c)(1)) or

22 property used in a United States trade or business.’’

23 (b) CONFORMING AMENDMENT.—The table of sec24 tions for part IV of subchapter O of chapter 1 of the Inter25 nal Revenue Code of 1986 is amended by striking the item
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1 relating to section 1061 and inserting the following new

2 items:

‘‘Sec. 1061. Basis of assets of nonresident alien individuals becoming citizens or residents.

‘‘Sec. 1062. Cross references.’’

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

4 this section shall apply to dispositions after the date of

5 the enactment of this Act, and to any disposition occurring

6 on or before such date to which section 877A of the Inter7 nal Revenue Code of 1986 (as added by section 501) ap8 plies.

9 SEC. 503. EARNED INCOME TAX CREDIT DENIED TO INDI10 VIDUALS NOT AUTHORIZED TO BE EM11 PLOYED IN THE UNITED STATES.

12 (a) IN GENERAL.—Section 32(c)(1) of the Internal

13 Revenue Code of 1986 (relating to individuals eligible to

14 claim the earned income tax credit) is amended by adding

15 at the end the following new subparagraph:

16 ‘‘(F) IDENTIFICATION NUMBER REQUIRE17 MENT.—The term ‘eligible individual’ does not

18 include any individual who does not include on

19 the return of tax for the taxable year—

20 ‘‘(i) such individual’s taxpayer identi21 fication number, and

22 ‘‘(ii) if the individual is married (with23 in the meaning of section 7703), the tax-
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1 payer identification number of such indi2 vidual’s spouse.’’

3 (b) SPECIAL IDENTIFICATION NUMBER.—Section 32

4 of the Internal Revenue Code of 1986 is amended by add5 ing at the end the following new subsection:

6 ‘‘(l) IDENTIFICATION NUMBERS.—Solely for pur7 poses of subsections (c)(1)(F) and (c)(3)(D), a taxpayer

8 identification number means a social security number is9 sued to an individual by the Social Security Administra10 tion (other than a social security number issued pursuant

11 to clause (II) (or that portion of clause (III) that relates

12 to clause (II)) of section 205(c)(2)(B)(i) of the Social Se13 curity Act).’’

14 (c) EXTENSION OF PROCEDURES APPLICABLE TO

15 MATHEMATICAL OR CLERICAL ERRORS.—Section

16 6213(g)(2) of the Internal Revenue Code of 1986 (relating

17 to the definition of mathematical or clerical errors) is

18 amended by striking ‘‘and’ at the end of subparagraph

19 (D), by striking the period at the end of subparagraph

20 (E) and inserting ‘‘, and’’, and by inserting after subpara21 graph (E) the following new subparagraph:

22 ‘‘(F) an omission of a correct taxpayer

23 identification number required under section 32

24 (relating to the earned income tax credit) to be

25 included on a return.’’
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1 (d) EFFECTIVE DATE.—The amendments made by

2 this section shall apply to taxable years beginning after

3 December 31, 1995.

4 SEC. 504. EARNED INCOME TAX CREDIT DENIED TO INDI5 VIDUALS WITH SUBSTANTIAL CAPITAL GAIN

6 NET INCOME.

7 (a) IN GENERAL.—Paragraph (2) of section 32(i) of

8 the Internal Revenue Code of 1986 (relating to denial of

9 credit for individuals having excessive investment income)

10 is amended—

11 (1) by striking ‘‘and’’ at the end of subpara12 graph (B),

13 (2) by striking the period at the end of sub14 paragraph (C) and inserting ‘‘, and’’, and

15 (3) by adding at the end the following new sub16 paragraph:

17 ‘‘(D) capital gain net income for the tax18 able year.’’

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

20 this section shall apply to taxable years beginning after

21 December 31, 1995.

22 SEC. 505. TREATMENT OF DISTRIBUTIONS IN REDEMPTION

23 OF STOCK HELD BY A CORPORATION.

24 (a) IN GENERAL.—Subsection (b) of section 302 of

25 the Internal Revenue Code of 1986 (relating to redemp-
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1 tions treated as exchanges) is amended by redesignating

2 paragraph (5) as paragraph (6) and by inserting after

3 paragraph (4) the following new paragraph:

4 ‘‘(5) REDEMPTION FROM CERTAIN CORPORATE

5 SHAREHOLDERS.—Except as provided in regulations,

6 subsection (a) shall apply to a distribution in re7 demption of stock held by a corporation if—

8 ‘‘(A) such redemption is—

9 ‘‘(i) part of a partial liquidation (with10 in the meaning of subsection (e)) of the re11 deeming corporation, or

12 ‘‘(ii) not pro rata as to all sharehold13 ers, and

14 ‘‘(B) such corporation would be entitled to

15 a deduction under section 243, 244, or 245

16 with respect to such distribution but for the ap17 plication of this paragraph.

18 To the extent provided by regulations, no loss shall

19 be recognized solely by reason of the application of

20 this paragraph.’’

21 (b) TECHNICAL AMENDMENTS.—

22 (1) Subsection (a) of section 302 of the Inter23 nal Revenue Code of 1986 is amended by striking

24 ‘‘or (4)’’ and inserting ‘‘(4), or (5)’’.
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1 (2) Paragraph (6) of section 302(b) of such

2 Code (as redesignated by subsection (a)) is amended

3 by striking ‘‘or (4)’’ each place it appears and in4 serting ‘‘(4), or (5)’’.

5 (3) Subsection (e) of section 1059 of such Code

6 is amended by striking paragraph (1) and by redes7 ignating paragraphs (2) and (3) as paragraphs (1)

8 and (2), respectively.

9 (4) Subsection (g) of section 1059 of such Code

10 is amended by inserting ‘‘and section 302(b)(5)’’

11 after ‘‘this section’’ in paragraph (1) and in the ma12 terial preceding paragraph (1).

13 (c) EFFECTIVE DATE.—

14 (1) IN GENERAL.—The amendments made by

15 this section shall apply to redemptions after May 3,

16 1995.

17 (2) EXCEPTION.—The amendments made by

18 this section shall not apply to any redemption pursu19 ant to the terms of—

20 (A) a written binding contract in effect on

21 May 3, 1995, or

22 (B) a tender offer outstanding on May 3,

23 1995.
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1 SEC. 506. UNIFORM ALIEN ELIGIBILITY CRITERIA FOR PUB2 LIC ASSISTANCE PROGRAMS.

3 (a) FEDERAL AND FEDERALLY-ASSISTED PRO4 GRAMS.—

5 (1) PROGRAM ELIGIBILITY CRITERIA.—

6 (A) AID TO FAMILIES WITH DEPENDENT

7 CHILDREN.—Section 402(a)(33) (42 U.S.C.

8 602(a)(33)) is amended by striking ‘‘(A) a citi9 zen’’ and all that follows through ‘‘of such

10 Act);’’ and inserting the following:

11 ‘‘(A) a citizen or national of the United

12 States, or

13 ‘‘(B) a qualified alien, as defined in section

14 1101(a)(10), provided that such alien is not

15 disqualified from receiving aid under a State

16 plan approved under this part pursuant to sec17 tion 210(f) or 245A(h) of the Immigration and

18 Nationality Act or any other provision of law;’’.

19 (B) SUPPLEMENTAL SECURITY INCOME.—

20 Section 1614(a)(1)(B)(i) (42 U.S.C.

21 1382c(a)(1)(B)(i) is amended to read as fol22 lows:

23 ‘‘(B)(i) is a resident of the United States, and

24 is either—

25 ‘‘(I) a citizen or national of the United

26 States, or
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1 ‘‘(II) a qualified alien, as defined in section

2 1101(a)(10), or’’.

3 (C) MEDICAID.—

4 (i) IN GENERAL.—Section 1903(v)

5 (42 U.S.C. 1396b(v)) is amended—

6 (I) in paragraph (1), to read as

7 follows:

8 ‘‘(v)(1) Notwithstanding the preceding provisions of

9 this section—

10 ‘‘(A) no payment may be made to a State under

11 this section for medical assistance furnished to an

12 individual who is disqualified from receiving such as13 sistance pursuant to section 210(f) or 245A(h) of

14 the Immigration and Nationality Act (8 U.S.C.

15 1160(f), 1255a(h)) or any other provision of law;

16 and

17 ‘‘(B) except as provided in paragraph (2), no

18 such payment may be made for medical assistance

19 furnished to an individual who is not—

20 ‘‘(i) a citizen or national of the United

21 States; or

22 ‘‘(ii) a qualified alien, as defined in section

23 1101(a)(10).’’; and

24 (II) in paragraph (2)—
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1 (aa) by striking ‘‘paragraph

2 (1)’’ and inserting ‘‘paragraph

3 (1)(B)’’; and

4 (bb) by striking ‘‘alien’’ each

5 place it appears and inserting

6 ‘‘individual’’.

7 (ii) CONFORMING AMENDMENTS.—

8 Section 1902 (42 U.S.C. 1396a) is amend9 ed—

10 (I) in subsection (a), in the last

11 sentence by striking ‘‘alien’’ and all

12 that follows through ‘‘1903(v).’’ and

13 inserting ‘‘individual who is not (A) a

14 citizen or national of the United

15 States, or (B) a qualified alien, as de16 fined in section 1101(a)(10), only in

17 accordance with section 1903(v).’’;

18 and

19 (II) in subsection (b)(33), by in20 serting ‘‘or national’’ after ‘‘citizen’’.

21 (2) DEFINITION OF QUALIFIED ALIEN.—Section

22 1101(a) (42 U.S.C. 1301(a)) is amended by adding

23 at the end the following new paragraph:

24 ‘‘(10) The term ‘qualified alien’ means an alien—
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1 ‘‘(A) who is lawfully admitted for permanent

2 residence within the meaning of section 101(a)(20)

3 of the Immigration and Nationality Act (8 U.S.C.

4 1101(a)(20));

5 ‘‘(B) who is admitted as a refugee pursuant to

6 section 207 of such Act (8 U.S.C. 1157);

7 ‘‘(C) who is granted asylum pursuant to section

8 208 of such Act (8 U.S.C. 1158);

9 ‘‘(D) whose deportation is withheld pursuant to

10 section 243(h) of such Act (8 U.S.C. 1253(h));

11 ‘‘(E) whose deportation is suspended pursuant

12 to section 244 of such Act (8 U.S.C. 1254);

13 ‘‘(F) who was granted conditional entry pursu14 ant to section 203(a)(7) of such Act (8 U.S.C.

15 1153(a)(7)), as in effect prior to April 1, 1980;

16 ‘‘(G) who is lawfully admitted for temporary

17 residence pursuant to section 210 or 245A of such

18 Act (8 U.S.C. 1160, 1255a);

19 ‘‘(H) who is within a class of aliens lawfully

20 present within the United States pursuant to any

21 other provision of such Act, provided that—

22 ‘‘(i) the Attorney General determines that

23 the continued presence of such class of aliens

24 serves a humanitarian or other compelling pub25 lic interest; and
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1 ‘‘(ii) the Secretary of Health and Human

2 Services determines that such interest would be

3 further served by treating each alien within

4 such class as a ‘qualified alien’ for purposes of

5 this Act; or

6 ‘‘(I) who is the spouse or unmarried child under

7 21 years of age of a citizen of the United States, or

8 the parent of such a citizen if the citizen is 21 years

9 of age or older, and with respect to whom an appli10 cation for adjustment to lawful permanent residence

11 is pending.’’.

12 (3) CONFORMING AMENDMENT.—Section

13 244A(f)(1) of the Immigration and Nationality Act

14 (8 U.S.C. 1254a(f)(1)) is amended by inserting ‘‘and

15 shall not be considered to be a ‘qualified alien’ with16 in the meaning of section 1101(a)(10) of the Social

17 Security Act’’ after ‘‘color or law’’.

18 (4) EFFECTIVE DATE.—The amendments made

19 by this subsection are effective with respect to bene20 fits payable on the basis of any application filed

21 after the date of the enactment of this Act.

22 (b) STATE AND LOCAL PROGRAMS.—A State or polit23 ical subdivision therein may provide that an alien is not

24 eligible for any program of assistance based on need that

25 is furnished by such State or political subdivision unless
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1 such alien is a ‘‘qualified alien’’ within the meaning of sec2 tion 1101(a)(10) of the Social Security Act (as added by

3 subsection (a)(2) of this section).

4 SEC. 507. DEEMING OF SPONSOR’S INCOME AND RE5 SOURCES TO AN ALIEN UNDER THE SUPPLE6 MENTAL SECURITY INCOME, AID TO FAMI7 LIES WITH DEPENDENT CHILDREN, AND

8 FOOD STAMP PROGRAMS.

9 (a) LENGTH OF DEEMING PERIOD.—

10 (1) MAKING THE SSI 5-YEAR PERIOD PERMA11 NENT.—Subsection (b) of section 7 of the Unem12 ployment Compensation Amendments of 1993 (Pub13 lic Law 103–152) is repealed.

14 (2) INCREASING THE AFDC PERIOD FROM 3 TO

15 5 YEARS.—Section 415 (42 U.S.C. 615) is amended

16 in subsections (a), (c)(1), and (d) by striking ‘‘three

17 years’’ each place it appears and inserting ‘‘5

18 years’’.

19 (3) INCREASING THE FOOD STAMP PERIOD

20 FROM 3 TO 5 YEARS.—Section 5(i) of the Food

21 Stamp Act of 1977 (7 U.S.C. 2014(i)) is amended

22 by striking ‘‘three years’’ each place it appears and

23 inserting ‘‘5 years’’.

24 (b) INAPPLICABILITY IN THE CASE OF ANY ALIEN

25 WHOSE SPONSOR RECEIVES SSI OR AFDC BENEFITS.—
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1 (1) SSI.—Section 1621(f) (42 U.S.C. 1382j(f))

2 is amended by adding at the end the following new

3 paragraph:

4 ‘‘(3) The provisions of this section shall not apply to

5 any alien for any month for which such alien’s sponsor

6 receives a benefit under this title (which includes, for pur7 poses of this paragraph, the program of federally adminis8 tered State supplementary payments made pursuant to

9 section 1616(a) or section 212(b) of Public Law 93–66

10 (42 U.S.C. 1382 note)) or under the program of aid to

11 families with dependent children under part A of title

12 IV.’’.

13 (2) AFDC.—Section 415(f) (42 U.S.C. 615(f))

14 is amended—

15 (A) by redesignating paragraphs (1)

16 through (5) as subparagraphs (A) through (E),

17 respectively;

18 (B) by striking ‘‘(f)’’ and inserting

19 ‘‘(f)(1)’’; and

20 (C) by adding at the end the following new

21 paragraph:

22 ‘‘(2) The provisions of this section shall not apply to

23 any alien for any month for which such alien’s sponsor

24 receives a benefit under the program authorized under this

25 part, or the program of supplemental security income au-
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1 thorized under title XVI (which includes, for purposes of

2 this paragraph, the program of federally administered

3 State supplementary payments made pursuant to section

4 1616(a) or section 212(b) of Public Law 93–66 (42

5 U.S.C. 1382 note)).’’.

6 (3) FOOD STAMPS.—Section 5(i)(2)(E) of the

7 Food Stamp Act of 1977 (7 U.S.C. 2014(i)(2)(E))

8 is amended—

9 (A) by striking ‘‘(E)’’ and inserting

10 ‘‘(E)(i)’’; and

11 (B) by adding at the end the following new

12 clause:

13 ‘‘(ii) The provisions of this subsection shall not

14 apply to any alien for any month for which such

15 alien’s sponsor receives a benefit under the program

16 of aid to families with dependent children under part

17 A of title IV of the Social Security Act or the pro18 gram of supplemental security income under title

19 XVI of such Act (which includes, for purposes of

20 this paragraph, the program of federally adminis21 tered State supplementary payments made pursuant

22 to section 1616(a) of such Act or section 212(b) of

23 Public Law 93–66 (42 U.S.C. 1382 note)).’’.

24 (c) INEQUITABLE CIRCUMSTANCES.—
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1 (1) SSI.—Section 1621 (42 U.S.C. 1382j) is

2 amended by adding at the end the following new

3 subsection:

4 ‘‘(g) The Commissioner may, pursuant to regulations

5 promulgated after consultation with the Secretary of Agri6 culture, alter or suspend the application of this section in

7 any case in which the Secretary determines that such ap8 plication would be inequitable under the circumstances.’’

9 (2) AFDC.—Section 415 (42 U.S.C. 615) is

10 amended by adding at the end the following new

11 subsection:

12 ‘‘(g) The Secretary may, pursuant to regulations pro13 mulgated after consultation with the Secretary of Agri14 culture, alter or suspend the application of this section in

15 any case in which the Secretary determines that such ap16 plication would be inequitable under the circumstances.’’

17 (3) FOOD STAMPS.—Section 5(i)(2) of the Food

18 Stamp Act of 1977 (7 U.S.C. 2014(i)(2)) is amend19 ed by adding at the end the following new subpara20 graph:

21 ‘‘(F) The Secretary may, pursuant to regula22 tions promulgated after consultation with the Sec23 retary of Health and Human Services, alter or sus24 pend the application of this section in any case in
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1 which the Secretary determines that such application

2 would be inequitable under the circumstances.’’.

3 (d) FOOD STAMPS EXEMPTION FOR BLIND OR DIS4 ABLED ALIENS.—Section 5(i)(2)(E) of the Food Stamp

5 Act of 1977 (7 U.S.C. 2014(i)(2)(E)), as amended by sub6 section (a)(2)(C), is amended by adding at the end the

7 following new clause:

8 ‘‘(iii) The provisions of this subsection shall not

9 apply with respect to any individual for any month

10 for which such individual receives a benefit under

11 the program of supplemental security income author12 ized by title XVI of the Social Security Act by rea13 son of blindness, as determined under section

14 1614(a)(2) of such Act, or disability, as determined

15 under section 1614(a)(3) of such Act, provided that

16 such blindness or disability commenced after the

17 date of such individual’s admission into the United

18 States for permanent residence.’’.

19 (e) STATE AND LOCAL PROGRAMS.—A State or polit20 ical subdivision therein may provide that an alien is not

21 eligible for any program of assistance based on need that

22 is furnished by such State or political subdivision for any

23 month if such alien has been determined to be ineligible

24 for such month for benefits under—
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1 (A) the program of aid to families with depend2 ent children authorized by part A of title IV of the

3 Social Security Act, as a result of the application of

4 section 415 of such Act;

5 (B) the program of supplemental security in6 come authorized by title XVI of the Social Security

7 Act, as a result of the application of section 1621

8 of such Act; or

9 (C) the Food Stamp Act of 1977, as a result

10 of the application of section 5(i) of such Act.

11 (f) EFFECTIVE DATE.—

12 (1) IN GENERAL.—The amendments made by

13 subsections (a) through (d) shall be effective with re14 spect to benefits under the program of aid to fami15 lies with dependent children under part A of title IV

16 of the Social Security Act (42 U.S.C. 601 et seq.),

17 the program of supplemental security income under

18 title XVI of such Act (42 U.S.C. 1381 et seq.), and

19 the program under the Food Stamp Act of 1977 (7

20 U.S.C. 2011 et seq.), payable for months beginning

21 after September 30, 1995, on the basis of—

22 (A) an application filed after such date, or

23 (B) an application filed on or before such

24 date by or on behalf of an individual subject to

25 the provisions of section 1621(a) or 415(a) of
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1 the Social Security Act (42 U.S.C. 1382j(a),

2 615(a)) or section 5(i)(1) of the Food Stamp

3 Act of 1977 (7 U.S.C. 2014(i)(1)) (as the case

4 may be) on such date.

5 (2) STATE AND LOCAL PROGRAMS.—Subsection

6 (e) shall be effective on October 1, 1995.

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