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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1977 Introduced in Senate (IS)]

103d CONGRESS
  2d Session
                                S. 1977

 To amend title IV of the Social Security Act to reform child support 
            enforcement procedures, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

             March 24 (legislative day, February 22), 1994

 Mr. Dodd (for himself, Mr. Kennedy, and Ms. Mikulski) introduced the 
 following bill; which was read twice and referred to the Committee on 
                                Finance

_______________________________________________________________________

                                 A BILL

 
 To amend title IV of the Social Security Act to reform child support 
            enforcement procedures, and for other purposes.

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

SECTION 1. SHORT TITLE; REFERENCE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Child Support 
Reform Act of 1994''.
    (b) Reference to Social Security Act.--Except as otherwise 
specifically provided, whenever in this Act an amendment is expressed 
in terms of an amendment to or repeal of a section or other provision, 
the reference shall be considered to be made to that section or other 
provision of the Social Security Act.
    (c) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; reference; table of contents.
Sec. 2. Findings and purposes.
                  TITLE I--ESTABLISHING SUPPORT ORDERS

              Subtitle A--National Child Support Guideline

Sec. 101. Process for developing recommendations for a national child 
                            support guideline for congressional 
                            approval.
    Subtitle B--Improved Procedures for Establishing Support Orders

Sec. 111. Administrative process.
Sec. 112. Evidence.
Sec. 113. Credit Reporting.
                  Subtitle C--Child Support Registries

Sec. 121. State central registries.
                 TITLE II--COLLECTIONS AND ENFORCEMENT

Sec. 201. Reporting of child support information.
Sec. 202. Occupational, professional, and business licenses.
Sec. 203. Driver's licenses and vehicle registrations.
Sec. 204. Technical correction to ERISA definition of medical child 
                            support order.
Sec. 205. UIFSA endorsement.
Sec. 206. Reports to credit bureaus on persons delinquent in child 
                            support payments.
            TITLE III--INTERSTATE CHILD SUPPORT ENFORCEMENT

Sec. 301. Establishment of the Office of the Assistant Commissioner for 
                            Interstate Child Support Enforcement.
Sec. 302. Division of the National Registry of Child Support Orders.
Sec. 303. Division of Enforcement.
Sec. 304. State plan requirements.
Sec. 305. Definitions.
     TITLE IV--FINANCING STATE CHILD SUPPORT ENFORCEMENT ACTIVITIES

Sec. 401. Federal financial participation.
Sec. 402. Audit standards.
                        TITLE V--EFFECTIVE DATES

Sec. 501. Effective dates.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--The Congress finds that--
            (1) an increasing number of children live in single-parent 
        families, and these families are 4 times as likely to be poor 
        as 2-parent families;
            (2) the failure of noncustodial parents to pay their fair 
        share of child support is a major contributor to poverty among 
        single-parent families;
            (3) in 1989, only 26 percent of all single mothers received 
        a full amount of child support, and half of the mothers with 
        child support orders received either no child support or less 
        than such mothers were due;
            (4) child support cases in which the parties live in 
        different States have the worst collection rates, accounting 
        for 3 of every 10 child support cases, but only $1 of every $10 
        of child support collected;
            (5) custodial parents in interstate cases are almost twice 
        as likely as parents in in-State cases to never receive child 
        support payments;
            (6) a more centralized system of child support enforcement 
        would help improve collections in all cases;
            (7) particularly strong measures are needed to overcome the 
        difficulties in reaching across State lines to collect child 
        support due in interstate cases;
            (8) increased Federal involvement in interstate cases would 
        relieve the States of the considerable burden of enforcing 
        child support orders when one of the parties lives in another 
        jurisdiction; and
            (9) State-by-State child support guidelines have resulted 
        in orders that vary significantly from State to State, 
        resulting in low awards and inequities for children.
    (b) Purpose.--It is the purpose of this Act to--
            (1) increase the economic security of children by creating 
        national child support guidelines;
            (2) improve the enforcement of child support awards through 
        a more centralized, efficient system and enhanced tools for 
        States to use in enforcement; and
            (3) improve the enforcement of child support orders when 
        the parties live in different States by placing responsibility 
        for enforcement in the Internal Revenue Service.

                  TITLE I--ESTABLISHING SUPPORT ORDERS

              Subtitle A--National Child Support Guideline

SEC. 101. PROCESS FOR DEVELOPING RECOMMENDATIONS FOR A NATIONAL CHILD 
              SUPPORT GUIDELINE FOR CONGRESSIONAL APPROVAL.

    (a) Development of Implementing Bill.--
            (1) In general.--Not later than 12 months after the date of 
        the enactment of this Act, the separate organizational unit 
        established under section 452(a) of the Social Security Act (42 
        U.S.C. 652(a)) shall submit to the Congress an implementing 
        bill with respect to the national child support guideline 
        developed under subsection (b) which contains such provisions 
        necessary or appropriate to implement such guideline, either 
        repealing or amending existing laws or providing new statutory 
        authority.
            (2) Use of advisory board.--
                    (A) In general.--To assist the separate 
                organizational unit in developing an implementing bill 
                with respect to a national child support guideline, the 
                Secretary of Health and Human Services shall appoint a 
                9-member National Child Support Guideline Advisory 
                Board (hereafter in this paragraph referred to as the 
                ``Board''). The Board shall include--
                            (i) individuals with judicial or 
                        administrative experience in matters involving 
                        child support enforcement;
                            (ii) individuals with knowledge of the cost 
                        of raising children; and
                            (iii) representatives of organizations 
                        which represent custodial and noncustodial 
                        parents.
                    (B) Compensation.--
                            (i) In general.--Members of the Board shall 
                        serve as such without pay.
                            (ii) Travel expenses, etc.--Members of the 
                        Board shall be allowed travel expenses, 
                        including a per diem allowance in lieu of 
                        subsistence, in the same manner as persons 
                        serving intermittently in the Government 
                        service are allowed travel expenses under 
                        section 5703 of title 5 of the United States 
                        Code.
    (b) National Child Support Guideline.--The national child support 
guideline developed under this subsection for recommendation to the 
Congress shall--
            (1) be used by each State as a rebuttable presumption of 
        the correct amount of support to be awarded in all judicial or 
        administrative proceedings for the establishment or 
        modification of child support;
            (2) maximize the support for children;
            (3) take into account--
                    (A) the definitions of ``income'' and ``resources'' 
                to be used in applying the guideline,
                    (B) the health care needs of the children, through 
                health insurance coverage or other means, and
                    (C) the child care and educational needs of the 
                children; and
            (4) include the criteria a State may use in evaluating a 
        request from either parent to rebut the use of the national 
        guideline, except that issues related to visitation may not be 
        used in lowering the amount of child support to be paid.
    (c) Congressional Consideration of Implementing Bill.--
            (1) In general.--The implementing bill described in 
        subsection (a) shall be considered by the Congress under the 
        procedure for consideration described in paragraph (2).
            (2) Procedure.--
                    (A) Rules of house of representatives and senate.--
                This paragraph is enacted by Congress--
                            (i) as an exercise of the rulemaking power 
                        of the House of Representatives and the Senate, 
                        respectively, and as such is deemed a part of 
                        the rules of each House, respectively, but 
                        applicable only with respect to the procedure 
                        to be followed in that House in the case of an 
                        implementing bill described in subsection 
                        (a)(1), and supersedes other rules only to the 
                        extent that such rules are inconsistent 
                        therewith; and
                            (ii) with full recognition of the 
                        constitutional right of either House to change 
                        the rules (so far as relating to the procedure 
                        of that House) at any time, in the same manner 
                        and to the same extent as in the case of any 
                        other rule of that House.
                    (B) Introduction and referral.--On the day on which 
                the implementing bill described in subsection (a)(1) is 
                transmitted to the House of Representatives and the 
                Senate, such bill shall be introduced (by request) in 
                the House of Representatives by the Majority Leader of 
                the House, for himself and the Minority Leader of the 
                House, or by Members of the House designated by the 
                Majority Leader and Minority Leader of the House and 
                shall be introduced (by request) in the Senate by the 
                Majority Leader of the Senate, for himself and the 
                Minority Leader of the Senate, or by Members of the 
                Senate designated by the Majority Leader and Minority 
                Leader of the Senate. If either House is not in session 
                on the day on which the implementing bill is 
                transmitted, the bill shall be introduced in the House, 
                as provided in the preceding sentence, on the first day 
                thereafter on which the House is in session. The 
                implementing bill introduced in the House of 
                Representatives and the Senate shall be referred to the 
                appropriate committees of each House.
                    (C) Amendments prohibited.--No amendment to an 
                implementing bill shall be in order in either the House 
                of Representatives or the Senate and no motion to 
                suspend the application of this paragraph shall be in 
                order in either House, nor shall it be in order in 
                either House for the Presiding Officer to entertain a 
                request to suspend the application of this paragraph by 
                unanimous consent.
                    (D) Period for committee and floor consideration.--
                            (i) In general.--Except as provided in 
                        clause (ii), if the committee or committees of 
                        either House to which an implementing bill has 
                        been referred have not reported it at the close 
                        of the 90th day after its introduction, such 
                        committee or committees shall be automatically 
                        discharged from further consideration of the 
                        implementing bill and it shall be placed on the 
                        appropriate calendar. A vote on final passage 
                        of the implementing bill shall be taken in each 
                        House on or before the close of the 90th day 
                        after the implementing bill is reported by the 
                        committees or committee of that House to which 
                        it was referred, or after such committee or 
                        committees have been discharged from further 
                        consideration of the implementing bill. If 
                        prior to the passage by 1 House of an 
                        implementing bill of that House, that House 
                        receives the same implementing bill from the 
                        other House then--
                                    (I) the procedure in that House 
                                shall be the same as if no implementing 
                                bill had been received from the other 
                                House; but
                                    (II) the vote on final passage 
                                shall be on the implementing bill of 
                                the other House.
                            (ii) Computation of days.--For purposes of 
                        clause (i), in computing a number of days in 
                        either House, there shall be excluded--
                                    (I) the days on which either House 
                                is not in session because of an 
                                adjournment of more than 3 days to a 
                                day certain, or an adjournment of the 
                                Congress sine die; and
                                    (II) any Saturday and Sunday not 
                                excluded under subclause (I) when 
                                either House is not in session.
                    (E) Floor consideration in the house of 
                representatives.--
                            (i) Motion to proceed.--A motion in the 
                        House of Representatives to proceed to the 
                        consideration of an implementing bill shall be 
                        highly privileged and not debatable. An 
                        amendment to the motion shall not be in order, 
                        nor shall it be in order to move to reconsider 
                        the vote by which the motion is agreed to or 
                        disagreed to.
                            (ii) Debate.--Debate in the House of 
                        Representatives on an implementing bill shall 
                        be limited to not more than 20 hours, which 
                        shall be divided equally between those favoring 
                        and those opposing the bill. A motion further 
                        to limit debate shall not be debatable. It 
                        shall not be in order to move to recommit an 
                        implementing bill or to move to reconsider the 
                        vote by which an implementing bill is agreed to 
                        or disagreed to.
                            (iii) Motion to postpone.--Motions to 
                        postpone, made in the House of Representatives 
                        with respect to the consideration of an 
                        implementing bill, and motions to proceed to 
                        the consideration of other business, shall be 
                        decided without debate.
                            (iv) Appeals.--All appeals from the 
                        decisions of the Chair relating to the 
                        application of the Rules of the House of 
                        Representatives to the procedure relating to an 
                        implementing bill shall be decided without 
                        debate.
                            (v) General rules apply.--Except to the 
                        extent specifically provided in the preceding 
                        provisions of this subparagraph, consideration 
                        of an implementing bill shall be governed by 
                        the Rules of the House of Representatives 
                        applicable to other bills and resolutions in 
                        similar circumstances.
                    (F) Floor consideration in the senate.--
                          (i) Motion to proceed.--A motion in the 
                        Senate to proceed to the consideration of an 
                        implementing bill shall be privileged and not 
                        debatable. An amendment to the motion shall not 
                        be in order, nor shall it be in order to move 
                        to reconsider the vote by which the motion is 
                        agreed to or disagreed to.
                            (ii) General debate.--Debate in the Senate 
                        on an implementing bill, and all debatable 
                        motions and appeals in connection therewith, 
                        shall be limited to not more than 20 hours. The 
                        time shall be equally divided between, and 
                        controlled by, the Majority Leader and the 
                        Minority Leader or their designees.
                            (iii) Debate of motions and appeals.--
                        Debate in the Senate on any debatable motion or 
                        appeal in connection with an implementing bill 
                        shall be limited to not more than 1 hour, to be 
                        equally divided between, and controlled by, the 
                        mover and the manager of the implementing bill, 
                        except that in the event the manager of the 
                        implementing bill is in favor of any such 
                        motion or appeal, the time in opposition 
                        thereto, shall be controlled by the Minority 
                        Leader or his designee. Such leaders, or either 
                        of them, may, from time under their control on 
                        the passage of an implementing bill, allot 
                        additional time to any Senator during the 
                        consideration of any debatable motion or 
                        appeal.
                            (iv) Other motions.--A motion in the Senate 
                        to further limit debate is not debatable. A 
                        motion to recommit an implementing bill is not 
                        in order.
    (d) Resubmissions.--If an implementing bill submitted under 
subsection (a)(1) is not approved by the Congress or is vetoed by the 
President (and such veto is not overridden by the Congress), the 
separate organizational unit shall resubmit a new implementing bill not 
later than 90 days after the Congress failed to approve such bill or 
failed to override the President's veto, and such new implementing bill 
shall be subject to congressional consideration as provided in 
subsection (c).

    Subtitle B--Improved Procedures for Establishing Support Orders

SEC. 111. ADMINISTRATIVE PROCESS.

    Section 466(a)(2) (42 U.S.C. 666(a)(2)) is amended to read as 
follows:
            ``(2) Procedures under which expedited administrative 
        processes are used to establish paternity in contested cases 
        and to obtain and enforce support orders in all cases. The 
        Secretary may waive the provisions of this paragraph with 
        respect to one or more political subdivisions within the State 
        on the basis of the effectiveness and timeliness of support 
        order issuance and enforcement or paternity establishment 
        within the political subdivision (in accordance with the 
        general rule for exemptions under subsection (d)).''.

SEC. 112. EVIDENCE.

    (a) National Subpoena Duces Tecum.--Section 452(a) (42 U.S.C. 
652(a)) is amended by striking ``and'' at the end of paragraph (9), by 
redesignating paragraph (10) as paragraph (11), and by inserting after 
paragraph (9) the following new paragraph:
            ``(10) draft and distribute a national subpoena duces tecum 
        for use by child support litigants to obtain income information 
        pertaining to all private, Federal, State, and local government 
        employees, as well as any receivers of income; and''.
    (b) State Standards.--Section 466(a) (42 U.S.C. 666(a)) is amended 
by inserting after paragraph (11) the following new paragraph:
            ``(12)(A) Procedures which require any unit of government, 
        person, or corporation doing business in the State to accept 
        and honor a subpoena duces tecum developed pursuant to section 
        452(a)(10).
            ``(B) Procedures which enforce through a hearing such a 
        subpoena served in the State, at which hearing the burden of 
        specifying the reasons for not timely honoring the subpoena 
        rests with the non-complying person or entity.
            ``(C) Procedures for the introduction in any judicial or 
        administrative child support proceeding of information 
        contained in the response to such a subpoena without the need 
        for further verification.''.

SEC. 113. CREDIT REPORTING.

    Section 604 of the Consumer Credit Protection Act (15 U.S.C. 1681b) 
is amended by adding at the end the following new paragraph:
    ``(4) To an agency administering a State plan under section 454 of 
the Social Security Act (42 U.S.C. 654) to use the information relevant 
to the setting of an initial or modified child support award, without 
the necessity of a court order.''.

                  Subtitle C--Child Support Registries

SEC. 121. STATE CENTRAL REGISTRIES.

    Section 466(a) (42 U.S.C. 666(a)), as amended by section 112, is 
amended by inserting after paragraph (12) the following new paragraph:
            ``(13)(A) Procedures under which the State shall maintain 
        by not later than July 1, 1996, a central child support order 
        registry which shall include each child support order issued or 
        modified in the State. Except in the case of a child support 
        order being enforced under section 303 of the Child Support 
        Reform Act of 1994, the State shall, through the registry, 
        receive, record, and disburse payment under each such child 
        support order.
            ``(B) Procedures under which the State prepares and 
        transmits within 5 days of entry into the central State child 
        support registry, an abstract of each order maintained in such 
        registry, to the National Registry of Child Support Orders 
        established under section 301 of the Child Support Reform Act 
        of 1994. The abstract shall contain such information as 
        required by the Secretary of the Treasury pursuant to 
        regulations issued under section 301(b) of such Act.''.

                 TITLE II--COLLECTIONS AND ENFORCEMENT

SEC. 201. REPORTING OF CHILD SUPPORT INFORMATION.

    (a) W-4 Reporting Requirement.--
            (1) In general.--The Secretary of the Treasury, in 
        consultation with the Secretary of Labor, shall require--
                    (A) all employees to file a new W-4 form with their 
                employers within 5 calendar days after the latest of--
                            (i) October 1, 1996,
                            (ii) the date the employee is hired, or
                            (iii) the date any information specified 
                        under paragraph (2) is no longer accurate; and
                    (B) all employers to provide a copy of every 
                employee's W-4 form to the National Registry of Child 
                Support Orders established under section 301 of this 
                Act.
            (2) Expanded use of form.--The Secretary of the Treasury 
        shall modify the W-4 form to be completed by an employee to 
        enable the employee to indicate on the form--
                    (A) whether the employee has a legal obligation to 
                provide child support (as defined in section 462(b) of 
                the Social Security Act (42 U.S.C. 662(b)) which is to 
                be collected, in whole or in part, through wage 
                withholding pursuant to an order issued by a State 
                court or an order of an administrative process 
                established under State law; and
                    (B) if so--
                            (i) the aggregate amount of all such 
                        obligations,
                            (ii) the name and address of any person to 
                        whom the employee has such an obligation, and
                            (iii) whether the payment of such 
                        obligation has been previously remitted to the 
                        National Registry of Child Support Orders 
                        established under section 301 of this Act.
    (b) Employer Obligations.--
            (1) In general.--Subtitle C of the Internal Revenue Code of 
        1986 (relating to employment taxes) is amended by inserting 
        after chapter 24 the following new chapter:

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

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

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

    ``(a) Requirement of Withholding.--
            ``(1) Wage withholding as indicated by the employee.--
        Except as provided in paragraph (2), each employer who receives 
        a completed W-4 form from an employee pursuant to section 
        201(a)(2) of the Child Support Reform Act of 1994 which 
        indicates that the employee has a legal obligation to provide 
        child support (as defined in section 462(b) of the Social 
        Security Act) which is payable through wage withholding shall--
                    ``(A) deduct and withhold from the wages of the 
                employee the amount indicated on the W-4 form as a 
                child support obligation; and
                    ``(B) send such amount to--
                            ``(i) the appropriate central State child 
                        support order registry established under 
                        section 466(a)(13)(A) of the Social Security 
                        Act, or
                            ``(ii) the National Registry of Child 
                        Support Orders established under section 301 of 
                        the Child Support Reform Act of 1994, if 
                        notified pursuant to the employee's W-4 or 
                        section 302(4) of such Act.
            ``(2) Correction of withholding instructions.--If the 
        central State child support order registry or the National 
        Registry of Child Support Orders notifies the employer that an 
        employee has an obligation unreported or misreported on the 
        employee's W-4, the employer shall--
                    ``(A) deduct and withhold from the wages of the 
                employee the amount that such registry indicates is to 
                be deducted and withheld from the wages of the employee 
                to satisfy such obligation; and
                    ``(B) send the amount so withheld to such registry.
    ``(b) Liability for Payment.--The employer shall be liable for the 
payment of amounts deducted and withheld under subsection (a) to the 
appropriate registry.
    ``(c) Special Rules.--For purposes of this chapter (and so much of 
subtitle F as relates to this chapter), any amount required to be 
deducted and withheld under this section shall be treated as if it were 
a tax withheld under chapter 24 and rules similar to the rules of 
chapter 24 shall apply.''.
            (2) Clerical amendment.--The table of chapters for subtitle 
        C of such Code is amended by inserting after the item relating 
        to chapter 24 the following new item:

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

SEC. 202. OCCUPATIONAL, PROFESSIONAL, AND BUSINESS LICENSES.

    Section 466(a) (42 U.S.C. 666(a)), as amended by section 121, is 
amended by inserting after paragraph (13) the following new paragraph:
            ``(14) Procedures under which the State occupational 
        licensing and regulating departments and agencies may not issue 
        or renew an occupational, professional, or business license 
        of--
                    ``(A) a noncustodial parent who is the subject of 
                an outstanding failure to appear warrant, capias, or 
                bench warrant related to a child support proceeding 
                that appears on the State's crime information system or 
                the National Registry of Child Support Orders 
                established under section 301 of the Child Support 
                Reform Act of 1994, until removed from the system or 
                Registry; and
                    ``(B) a noncustodial parent who is delinquent in 
                such parent's child support obligation in an amount at 
                least equal to the support payable for one month, as 
                recorded in the central State child support order 
                registry established under paragraph (13)(A) or the 
                National Registry of Child Support Orders established 
                under section 301 of the Child Support Reform Act of 
                1994, until--
                            ``(i) the pro se obligee, the obligee's 
                        attorney, a State prosecutor responsible for 
                        child support enforcement, or the Division of 
                        Enforcement established under such section 301 
                        consents to the release of the hold on the 
                        license,
                            ``(ii) a court or administrative agency 
                        that is responsible for the order's enforcement 
                        orders the release of the hold on the license, 
                        or
                            ``(iii) an expedited inquiry and review is 
                        completed while such parent is granted a 30-day 
                        temporary license.''.

SEC. 203. DRIVER'S LICENSES AND VEHICLE REGISTRATIONS.

    Section 466(a) (42 U.S.C. 666(a)), as amended by section 202, is 
amended by inserting after paragraph (14) the following new paragraph:
            ``(15) Procedures under which the State motor vehicle 
        department--
                    ``(A) may not issue or renew a driver's license 
                (other than a temporary license of not more than 60-
                days duration) of any noncustodial parent who is the 
                subject of an outstanding failure to appear warrant, 
                capias, or bench warrant related to a child support 
                proceeding that appears on the State's crime 
                information system or the National Registry of Child 
                Support Orders established under section 301 of the 
                Child Support Reform Act of 1994, until removed from 
                the system or Registry;
                    ``(B) may not issue or renew a driver's license or 
                vehicle registration (other than temporary) of any 
                noncustodial parent who is delinquent in such parent's 
                child support obligation in an amount at least equal to 
                the support payable for one month, as recorded in the 
                central State child support order registry established 
                under paragraph (13)(A) or the National Registry of 
                Child Support Orders established under section 301 of 
                the Child Support Reform Act of 1994, until--
                            ``(i) the pro se obligee, the obligee's 
                        attorney, a State prosecutor responsible for 
                        child support enforcement, or the Division of 
                        Enforcement established under such section 301 
                        consents to the release of the hold on the 
                        license or registration,
                            ``(ii) a court or administrative agency 
                        that is responsible for the order's enforcement 
                        orders the release of the hold on the license 
                        or registration, or
                            ``(iii) an expedited inquiry and review is 
                        completed while such parent is granted a 30-day 
                        temporary license or registration; and
                    ``(C) upon receiving notice that an individual 
                holds a State driver's license or vehicle registration 
                who is the subject of a warrant related to a child 
                support proceeding--
                            ``(i) issues a show cause order to such 
                        individual asking such individual to 
                        demonstrate why such individual's driver's 
                        license or vehicle registration ought not be 
                        suspended until the warrant is removed by the 
                        court responsible for issuing the warrant, and
                            ``(ii) in cases in which a show cause order 
                        pursuant to clause (i) has been issued, may 
                        grant a temporary license or vehicle 
                        registration to such individual pending the 
                        show cause hearing or the removal of the 
                        warrant, whichever occurs first.''.

SEC. 204. TECHNICAL CORRECTION TO ERISA DEFINITION OF MEDICAL CHILD 
              SUPPORT ORDER.

    (a) In General.--Section 609(a)(2)(B) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1169(a)(2)(B)) is amended--
            (1) by striking ``issued by a court of competent 
        jurisdiction'';
            (2) by striking the period at the end of clause (ii) and 
        inserting a comma; and
            (3) by adding, after and below clause (ii), the following:
                ``if such judgment, decree, or order (I) is issued by a 
                court of competent jurisdiction or (II) is issued by an 
                administrative adjudicator and has the force and effect 
                of law under applicable State law.''.
    (b) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        take effect on the date of the enactment of this Act.
            (2) Plan amendments not required until january 1, 1995.--
        Any amendment to a plan required to be made by an amendment 
        made by this section shall not be required to be made before 
        the first plan year beginning on or after January 1, 1995, if--
                    (A) during the period after the date before the 
                date of the enactment of this Act and before such first 
                plan year, the plan is operated in accordance with the 
                requirements of the amendments made by this section, 
                and
                    (B) such plan amendment applies retroactively to 
                the period after the date before the date of the 
                enactment of this Act and before such first plan year.
        A plan shall not be treated as failing to be operated in 
        accordance with the provisions of the plan merely because it 
        operates in accordance with this paragraph.

SEC. 205. UIFSA ENDORSEMENT.

    Section 466 (42 U.S.C. 666) is amended by adding at the end the 
following new subsection:
    ``(f) In order to satisfy section 454(20)(A), each State must have 
in effect by January 1, 1996, laws which adopt without material change 
the officially approved version of the Uniform Interstate Family 
Support Act adopted by the National Conference of Commissioners on 
Uniform State Laws and approved by the American Bar Association House 
of Delegates on February 9, 1993.''.

SEC. 206. REPORTS TO CREDIT BUREAUS ON PERSONS DELINQUENT IN CHILD 
              SUPPORT PAYMENTS.

    (a) In General.--Section 466(a)(7) (42 U.S.C. 666(a)(7)) is amended 
to read as follows:
    ``(7) Procedures requiring the State to provide to each consumer 
reporting agency (as defined in section 603(f) of the Fair Credit 
Reporting Act (15 U.S.C. 1681a(f))) information regarding the amount of 
overdue support owed by any absent parent who resides in the State.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 1994.

            TITLE III--INTERSTATE CHILD SUPPORT ENFORCEMENT

SEC. 301. ESTABLISHMENT OF THE OFFICE OF THE ASSISTANT COMMISSIONER FOR 
              INTERSTATE CHILD SUPPORT ENFORCEMENT.

    (a) In General.--For purposes of locating absent parents and 
facilitating the enforcement of child support obligations, the 
Secretary of the Treasury shall establish within the Internal Revenue 
Service an Office of the Assistant Commissioner for Interstate Child 
Support Enforcement which shall establish not later than July 1, 1996--
            (1) a Division of the National Registry of Child Support 
        Orders for the purpose of carrying out the duties described in 
        section 302; and
            (2) a Division of Enforcement for the purpose of carrying 
        out the duties described in section 303.
    (b) Coordination.--The Secretary of the Treasury, in consultation 
with the Secretary of Health and Human Services shall issue regulations 
for the coordination of activities among the Office of the Assistant 
Commissioner for Interstate Child Support Enforcement, the Assistant 
Secretary for Children and Families, and the States, to facilitate the 
purposes of this title.

SEC. 302. DIVISION OF THE NATIONAL REGISTRY OF CHILD SUPPORT ORDERS.

    With respect to the Division of the National Registry of Child 
Support Orders (hereafter in this title referred to as the 
``Registry''), the duties described in this section are as follows:
            (1) Retain an abstract of all child support orders issued 
        or modified by the States, including the names, social security 
        numbers, and addresses of the parties, the amount of the order, 
        whether the order is being enforced under the State plan 
        approved under part D of title IV of the Social Security Act 
        (42 U.S.C. 651 et seq.), and such other information as the 
        Secretary of Treasury, in consultation with the Secretary of 
        Health and Human Services, shall, by regulation, require.
            (2) Promptly notify the Division of Enforcement whenever 
        the Registry receives notice from a State that an order being 
        enforced by the Division of Enforcement has been modified, 
        specifying which terms of such order are modified.
            (3)(A) Receive from employers the reports required under 
        section 201(a)(1) of this Act, match such reports against the 
        abstracts contained in the Registry, confirm that support is 
        owed, to whom such support is owed, and in what amount, and 
        report any corrections to the employers.
            (B) Upon receipt of such a report--
                    (i) if the employee is subject to a child support 
                order, retain the information contained in such report 
                with respect to such employee; and
                    (ii) if the employee is not subject to a child 
                support order, promptly destroy such information.
            (C) Upon receipt of such a report--
                    (i) if both parents reside in the same State and 
                the child support order has not been previously 
                referred to the Division of Enforcement, report to the 
                appropriate central State child support order registry 
                established under section 466(a)(13)(A) of the Social 
                Security Act (42 U.S.C. 666(a)(13)(A)), the name, 
                address, social security number, and date of birth of 
                the employee, the employer's name and address, the 
                employee's date of hire, and any other information 
                obtained which would be useful in enforcing the child 
                support order according to its terms;
                    (ii) if the parents reside in different States and 
                the order has not been previously referred to the 
                Division of Enforcement, refer the order for interstate 
                enforcement to the Division of Enforcement; and
                    (iii) if the order has been previously referred to 
                the Division of Enforcement, refer the information 
                specified in clause (i) to the Division of Enforcement.
            (4) If an order is referred to the Division of Enforcement 
        by the Registry under paragraph (3)(C)(ii) or by a State child 
        support enforcement agency under section 454(26) of the Social 
        Security Act (42 U.S.C. 654(26))--
                    (A) notify the custodial and noncustodial parents 
                of such referral; and
                    (B) notify the employer to remit all child support 
                payments to the Registry, receive all child support 
                payments made pursuant to the order, record such 
                payments, and promptly disburse the funds--
                            (i) in cases where there is an assignment 
                        of rights under section 402(a)(26) of the 
                        Social Security Act (42 U.S.C. 602(a)(26)), in 
                        accordance with section 457(b) of such Act (42 
                        U.S.C. 657(b)), and
                            (ii) in all other cases, to the custodial 
                        parent.

SEC. 303. DIVISION OF ENFORCEMENT.

    (a) In General.--With respect to the Division of Enforcement, the 
duties described in this section are as follows:
            (1) Enforce all child support orders referred to the 
        Division of Enforcement--
                    (A) under section 302(3)(C)(ii);
                    (B) by a State child support enforcement agency 
                under section 454(26) of the Social Security Act (42 
                U.S.C. 654(26)); and
                    (C) under section 452(b) of the Social Security Act 
                (42 U.S.C. 652(b)).
            (2) Enforce a child support order in accordance with the 
        terms of the abstract contained in the Registry pursuant to 
        section 302(1) or the modified terms of such an order upon 
        notification of such modifications by the Registry under 
        section 302(2).
            (3) Enforce medical support provisions of any child support 
        order using any means available under State or Federal law.
            (4) Receive and process requests for Federal income 
        intercept made in accordance with section 464 of the Social 
        Security Act (42 U.S.C. 664).
With respect to orders referred to the Division of Enforcement under 
subparagraph (A) or (B) of paragraph (1), once the referral is made, 
the Division of Enforcement shall retain responsibility for enforcement 
even if the parties resume residence in the same State.
    (b) Failure To Pay Amount Owing.--With respect to any child support 
order being enforced by the Division of Enforcement, if an individual 
fails to pay the full amount required to be paid on or before the due 
date for such payment, the Office of the Assistant Commissioner for 
Interstate Child Enforcement, through the Division of Enforcement, may 
assess and collect the unpaid amount in the same manner, with the same 
powers, and subject to the same limitations applicable to a tax imposed 
by subtitle C of the Internal Revenue Code of 1986 the collection of 
which would be jeopardized by delay.
    (c) Use of Federal Courts.--The Office of the Assistant 
Commissioner for Interstate Child Enforcement, through the Division of 
Enforcement, may utilize the courts of the United States to enforce 
child support orders against absent parents upon a finding that--
            (1) the order is being enforced by the Division of 
        Enforcement; and
            (2) utilization of such courts is a reasonable method of 
        enforcing the child support order.
    (d) Conforming Amendments.--
            (1) Section 452(a)(8) (42 U.S.C. 652(a)(8)) is repealed.
            (2) Section 452(c) (42 U.S.C. 652(c)) is repealed.

SEC. 304. STATE PLAN REQUIREMENTS.

    Section 454 (42 U.S.C. 654) is amended by striking ``and'' at the 
end of paragraph (23), by striking the period at the end of paragraph 
(24) and inserting a semicolon, and by inserting after paragraph (24) 
the following new paragraphs:
            ``(25) provide that the State will cooperate with the 
        Office of the Assistant Commissioner for Interstate Child 
        Support Enforcement to facilitate the exchange of information 
        regarding child support cases and the enforcement of orders by 
        the Commissioner; and
            ``(26) provide that the State child support enforcement 
        agency shall refer for enforcement to the Division of 
        Enforcement established under section 301 of the Child Support 
        Reform Act of 1994 any child support order if an amount equal 
        to at least 1 month's support is in arrears and the State 
        believes the parties reside in different States.''.

SEC. 305. DEFINITIONS.

    Any term used in this title which is also used in part D of title 
IV of the Social Security Act (42 U.S.C. 651 et seq.) shall have the 
meaning given such term by such part.

     TITLE IV--FINANCING STATE CHILD SUPPORT ENFORCEMENT ACTIVITIES

SEC. 401. FEDERAL FINANCIAL PARTICIPATION.

    (a) In General.--Section 455(a) (42 U.S.C. 655(a)) is amended--
            (1) at the end of paragraph (1), by adding the following 
        new sentence: ``For fiscal year 1995 and thereafter, no amount 
        shall be paid to any State under this section unless the 
        amounts expended by such State during such year for the 
        operation of the plan approved under this part are not less 
        than such amounts expended by such State in fiscal year 
        1994.''; and
            (2) in paragraph (2), by striking ``and'' at the end of 
        subparagraph (B) and by striking subparagraph (C) and inserting 
        the following new subparagraphs:
                    ``(C) 66 percent for fiscal years 1990, 1991, 1992, 
                1993, and 1994, and
                    ``(D) 85 percent for fiscal year 1995 and each 
                fiscal year thereafter.''.
    (b) Repeal of Incentive Payments to States.--Section 458 (42 U.S.C. 
658) is repealed.

SEC. 402. AUDIT STANDARDS.

    (a) Establishment of Committee.--
            (1) In general.--The Secretary (hereafter in this section 
        referred to as the ``Secretary'') shall establish a Child 
        Support Audit Advisory Committee (hereafter in this section 
        referred to as the ``Committee'').
            (2) Membership.--
                    (A) Number of members.--The Secretary shall 
                determine the number of members on the Committee.
                    (B) Appointment.--The members of the Committee 
                shall be appointed by the Secretary and shall include 
                representatives of directors of State child support 
                enforcement programs operating under part D of title IV 
                of the Social Security Act (42 U.S.C. 651 et seq.), 
                recipients of child support enforcement services, and 
                independent management consultants.
            (3) Duties of the committee.--The Committee shall assist 
        the Secretary in preparing revised audit criteria to be used 
        pursuant to section 452(a)(4) of the Social Security Act (42 
        U.S.C. 652(a)(4)) based on--
                    (A) common data elements which are defined, 
                collected, and reported in a uniform manner from each 
                State;
                    (B) numeric measures of program outcomes in 
                locating absent parents, establishing paternity, 
                obtaining child support orders, periodically modifying 
                such orders, and enforcing such orders (including 
                orders for health insurance coverage);
                    (C) numeric measures for assessing compliance with 
                the regulations issued by the Secretary pursuant to 
                subsections (h) and (i) of section 452 of such Act (42 
                U.S.C. 652); and
                    (D) a definition of substantial compliance with 
                such criteria.
            (4) Compensation.--
                    (A) In general.--Members of the Committee shall 
                serve without compensation.
                    (B) Expenses, etc., reimbursed.--The members of the 
                Committee may be allowed travel expenses while on the 
                business of the Committee, including per diem in lieu 
                of subsistence, as authorized by section 5703 of title 
                5, United States Code, for persons employed 
                intermittently in Government service.
            (5) Application of act.--The provisions of the Federal 
        Advisory Committee Act shall not apply with respect to the 
        Committee.
            (6) Support.--The Secretary shall supply such necessary 
        office facilities, office supplies, support services, and 
        related expenses as necessary to carry out the functions of the 
        Committee.
            (7) Timing.--The Secretary shall--
                    (A) not later than 60 days after the date of the 
                enactment of this Act establish the Committee; and
                    (B) not later than 180 days after such date issue a 
                notice of proposed rulemaking with respect to the audit 
                standards required by this subsection, and, after 
                allowing not less than 45 days for public comment, 
                issue final regulations not later than 270 days after 
                the date of the enactment of this Act, to be effective 
                beginning 1 year after the date of the issuance of such 
                regulations.
    (b) Compliance Enforcement.--
            (1) In general.--Section 403(h)(1) (42 U.S.C. 603(h)(1)) is 
        amended--
                    (A) by striking ``part D'' and inserting ``this 
                part''; and
                    (B) by striking ``by--'' and all that follows and 
                inserting ``by not less than 5 percent nor more than 10 
                percent.''.
            (2) Redesignation.--Title IV is amended--
                    (A) by redesignating subsection (h) of section 403 
                (42 U.S.C. 603), as amended by paragraph (1), as 
                subsection (f); and
                    (B) by relocating subsection (f) (as so 
                redesignated) immediately following subsection (e) of 
                section 455 (42 U.S.C. 655).

                        TITLE V--EFFECTIVE DATES

SEC. 501. EFFECTIVE DATES.

    (a) In General.--Except as otherwise provided in this Act or 
subsection (b), the amendments made by this Act shall take effect on 
the date of the enactment of this Act.
    (b) Special Rule.--In the case of a State that the Secretary of 
Health and Human Services determines requires State legislation (other 
than legislation appropriating funds) in order to meet the additional 
requirements imposed by the amendments made by this Act, the State 
shall not be regarded as failing to comply with the requirements of 
such amendments before the first day of the first calendar quarter 
beginning after the close of the first regular session of the State 
legislature that begins after the date of enactment of this Act. For 
purposes of this subsection, in the case of a State that has a 2-year 
legislative session, each year of the session shall be treated as a 
separate regular session of the State legislature.

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