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Grant Act of 1990 (42 U.S.C. 9858m) is
amended—
(i) in subsection (a)—
(I) in paragraph (1), by striking
‘‘this subchapter’’ and inserting sec-
tion 658B(a); and
(II) in paragraph (2), by striking
‘‘section 658B’’ and inserting ‘‘section
658B(a); and
(ii) in subsection (b)(1), by striking
‘‘section 658B’’ and inserting ‘‘section
658B(a)’’.
(6) IMPROVING QUALITY.—
(A) INCREASE IN REQUIRED FUNDING.—
Section 658G of the Child Care and Develop-
ment Block Grant Act of 1990 (42 U.S.C.
9858e) is amended by striking ‘‘not less than
20 percent’’.
(B) QUALITY
IMPROVEMENT
INCENTIVE
INITIATIVE.—Section 658G of the Child Care
and Development Block Grant Act of 1990 (42
U.S.C. 9858e) is amended—
(i) by striking ‘‘A State’’ and insert-
ing ‘‘(a) IN GENERAL.—A State’’;
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(ii) by adding at the end the following
new subparagraphs:
‘‘(6) BEFORE
AND
AFTER-SCHOOL
ACTIVI-
TIES.—Increasing the availability of before and
after-school care.
‘‘(7) INFANT CARE.—Increasing the availability
of child care for infants under the age of 18 months.
‘‘(8) NONTRADITIONAL WORK HOURS.—Increas-
ing the availability of child care between the hours
of 5:00 p.m. and 8:00 a.m.’’;
(iii) by adding at the end the follow-
ing new subsection:
‘‘(b) QUALITY IMPROVEMENT INCENTIVE INITIA-
TIVE.—
‘‘(1) IN GENERAL.—The Secretary shall estab-
lish a child care quality improvement incentive ini-
tiative to make funds available to States that dem-
onstrate progress in the implementation of—
‘‘(A) innovative teacher training programs
such as the Department of Defense staff devel-
opment and compensation program for child
care personnel; or
‘‘(B) enhanced child care quality standards
and licensing and monitoring procedures.
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‘‘(2) FUNDING.—From the amounts made
available for each fiscal year under subsection (a),
the 
Secretary 
shall 
reserve 
not 
to 
exceed
$250,000,000 in each such fiscal year to carry out
this subsection.’’.
(7) REPEAL—Section 658H of the Child Care
and Development Block Grant Act of 1990 (42
U.S.C. 9858f) is repealed.
(8) PAYMENTS.—Section 658J(a) of the Child
Care and Development Block Grant Act of 1990 (42
U.S.C. 9858h) is amended by striking ‘‘Subject to
the availability of appropriation, a’’ and inserting
‘‘A’’.
(9) DEFINITION
OF
POVERTY
LINE.—Section
658P of the Child Care and Development Block
Grant Act of 1990 (42 U.S.C. 9858n) is amended—
(A) by redesignating paragraphs (10)
through (14) as paragraphs (11) through (15),
respectively; and
(B) by inserting after paragraph (9), the
following new paragraph:
‘‘(10) POVERTY LINE.—The term ‘poverty line’
means the poverty line (as such term is defined in
section 673(2) of the Community Services Block
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Grant Act (42 U.S.C. 9902(2)), including any revi-
sion required by such section) that—
‘‘(A) in the case of a family of less than
4 individuals, is applicable to a family of the
size involved; and
‘‘(B) in the case of a family of 4 or more
individuals, is applicable to a family of 4 indi-
viduals.’’.
(c) PROGRAM REPEALS.—
(1) STATE DEPENDENT CARE GRANTS.—Sub-
chapter E of chapter 8 of subtitle A of title VI of
the Omnibus Budget Reconciliation Act of 1981 (42
U.S.C. 9871 et seq.) is repealed.
(2) CHILD DEVELOPMENT ASSOCIATE SCHOLAR-
SHIP ASSISTANCE ACT.—The Child Development As-
sociate Scholarship Assistance Act of 1985 (42
U.S.C. 10901 et seq.) is repealed.
SEC. 9206. CERTAIN FEDERAL ASSISTANCE INCLUDIBLE IN
GROSS INCOME.
(a) IN GENERAL.—Part II of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 (relating to
items specifically included in gross income) is amended by
adding at the end the following new section:
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‘‘SEC. 91. CERTAIN FEDERAL ASSISTANCE.
‘‘(a) IN GENERAL.—Gross income shall include an
amount equal to the specified Federal assistance received
by the taxpayer during the taxable year.
‘‘(b) SPECIFIED FEDERAL ASSISTANCE.—For pur-
poses of this section—
‘‘(1) IN GENERAL.—The term ‘specified Federal
assistance’ means—
‘‘(A) supplemental security income benefits
under title XVI of the Social Security Act (in-
cluding supplemental security income benefits
of the type described in section 1616 of such
Act or section 212 of Public Law 93-66).’’.
(b) REPORTING.—
(1) IN GENERAL.—Subpart B of part III of
subchapter A of chapter 61 of such Code is amended
by adding at the end the following new section:
‘‘SEC. 6050Q. PAYMENTS OF CERTAIN FEDERAL ASSIST-
ANCE.
‘‘(a) REQUIREMENT
OF REPORTING.—The appro-
priate official shall make a return, according to the forms
and regulations prescribed by the Secretary, setting
forth—
‘‘(1) the aggregate amount of specified Federal
assistance paid to any individual during any cal-
endar year, and
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‘‘(2) the name, address, and TIN of such indi-
vidual.
‘‘(b) STATEMENTS TO BE FURNISHED TO PERSONS
WITH RESPECT TO WHOM INFORMATION IS REQUIRED.—
Every person required to make a return under subsection
(a) shall furnish to each individual whose name is required
to be set forth in such return a written statement show-
ing—
‘‘(1) the aggregate amount of payments made
to the individual which are required to be shown on
such return, and
‘‘(2) the name of the agency making the pay-
ments.
The written statement required under the preceding sen-
tence shall be furnished to the individual on or before Jan-
uary 31 of the year following the calendar year for which
the return under subsection (a) was required to be made.
‘‘(c) DEFINITIONS AND SPECIAL RULE.—For pur-
poses of this section—
‘‘(1) APPROPRIATE OFFICIAL.—The term ‘ap-
propriate official’ means—
‘‘(A) in the case of specified Federal as-
sistance described in section 91(b)(1)(A), the
head of the State agency administering the plan
under which such assistance is provided,
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paragraphs (Q) through (T) as subparagraphs
(R) through (U), respectively, and by inserting
after subparagraph (P) the following new sub-
paragraph:
‘‘(Q) section 6050Q(b) (relating to pay-
ments of certain Federal assistance),’’.
(c) SUPPLEMENTAL SECURITY INCOME BENEFITS
NOT TAKEN
INTO ACCOUNT
FOR PURPOSES
OF
THE
EARNED INCOME TAX CREDIT.—Section 32 of the Inter-
nal Revenue Code of 1986 (relating to the earned income
tax credit), is amended by adding at the end the following
new subsection:
‘‘(k) ADJUSTED GROSS INCOME DETERMINED WITH-
OUT REGARD TO CERTAIN FEDERAL ASSISTANCE.—For
purposes of this section, adjusted gross income shall be
determined without regard to any amount which is includ-
ible in gross income solely by reason of section 91.’’
(d) CLERICAL AMENDMENTS.—
(1) The table of sections for part II of sub-
chapter B of chapter 1 of such Code is amended by
adding at the end the following new item:
‘‘Sec. 91. Certain Federal assistance.’’.
(2) The table of sections for subpart B of part
III of subchapter A of chapter 61 of such Code is
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amended by adding at the end the following new
item:
‘‘Sec. 6050Q. Payments of certain Federal assistance.’’.
(e) EFFECTIVE DATE.—The amendments made by
this section shall apply to benefits received after December
31, 1995, except that the amendment made by subsection
(c) shall apply to taxable years beginning after such date.
SEC. 9207. DEPENDENT CARE CREDIT TO BE REFUNDABLE;
HIGH-INCOME TAXPAYERS INELIGIBLE FOR
CREDIT.
(a) CREDIT TO BE REFUNDABLE.—
(1) IN GENERAL.—Section 21 of the Internal
Revenue Code of 1986 (relating to expenses for
household and dependent care services necessary for
gainful employment) is hereby moved to subpart C
of part IV of subchapter A of chapter 1 of such
Code (relating to refundable credits) and inserted
after section 34.
(2) TECHNICAL AMENDMENTS.—
(A) Section 35 of such Code is redesig-
nated as section 36.
(B) Section 21 of such Code is redesig-
nated as section 35.
(C) Paragraph (1) of section 35(a) of such
Code (as redesignated by subparagraph (B)) is
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amended by striking ‘‘this chapter’’ and insert-
ing ‘‘this subtitle’’.
(D) Subparagraph (C) of section 129(a)(2)
of such Code is amended by striking ‘‘section
21(e)’’ and inserting ‘‘section 35(e)’’.
(E) Paragraph (2) of section 129(b) of
such Code is amended by striking ‘‘section
21(d)(2)’’ and inserting ‘‘section 35(d)(2)’’.
(F) Paragraph (1) of section 129(e) of
such Code is amended by striking ‘‘section
21(b)(2)’’ and inserting ‘‘section 35(b)(2)’’.
(G) Subsection (e) of section 213 of such
Code is amended by striking ‘‘section 21’’ and
inserting ‘‘section 35’’.
(H) Paragraph (2) of section 1324(b) of
title 31, United States Code, is amended by in-
serting before the period ‘‘, or from section 35
of such Code’’.
(I) The table of sections for subpart C of
part IV of subchapter A of chapter 1 of such
Code is amended by striking the item relating
to section 35 and inserting the following:
‘‘Sec. 35. Expenses for household and dependent care services
necessary for gainful employment.
‘‘Sec. 36. Overpayments of tax.’’.
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(J) The table of sections for subpart A of
such part IV is amended by striking the item
relating to section 21.
(b) HIGHER-INCOME TAXPAYERS INELIGIBLE FOR
CREDIT.—Subsection (a) of section 35 of such Code, as
redesignated by subsection (a), is amended by adding at
the end the following new paragraph:
‘‘(3) PHASEOUT
OF
CREDIT
FOR
HIGHER-IN-
COME TAXPAYERS.—The amount of the credit which
would (but for this paragraph) be allowed by this
section shall be reduced (but not below zero) by an
amount which bears the same ratio to such amount
of credit as the excess of the taxpayer’s adjusted
gross income for the taxable year over $60,000 bears
to $20,000. Any reduction determined under the
preceding sentence which is not a multiple of $10
shall be rounded to the nearest multiple of $10.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1996.
Subtitle C—Work First
SEC. 9301. WORK FIRST PROGRAM.
(a) ESTABLISHMENT
AND
OPERATION
OF
PRO-
GRAM.—Title IV (42 U.S.C. 601 et seq.) is amended by
striking part F and inserting the following:
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‘‘Part F—Work First Program
‘‘SEC. 481. STATE ROLE.
‘‘(a) PROGRAM REQUIREMENTS.—Any State may es-
tablish and operate a work first program that meets the
following requirements:
‘‘(1) OBJECTIVE.—The objective of the pro-
gram is for each program participant to find and
hold a full-time unsubsidized paid job, and for this
goal to be achieved in a cost-effective fashion.
‘‘(2) METHOD.—The method of the program is
to connect recipients of assistance under the State
plan approved under part A with the private sector
labor market as soon as possible and offer them the
support and skills necessary to remain in the labor
market. Each component of the program should be
permeated with an emphasis on employment and
with an understanding that minimum wage jobs are
a stepping stone to more highly paid employment.
The program shall provide recipients with education,
training, 
job 
search 
and 
placement, 
wage
supplementation, temporary subsidized jobs, or such
other services that the State deems necessary to help
a recipient obtain private sector employment.
‘‘(3) JOB
CREATION.—The creation of jobs,
with an emphasis on private sector jobs, shall be a
component of the program and shall be a priority for
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each State office with responsibilities under the pro-
gram.
‘‘(4) FORMS OF ASSISTANCE.—The State shall
provide assistance to participants in the program in
the form of education, training, job placement serv-
ices (including vouchers for job placement services),
work supplementation programs, temporary sub-
sidized job creation, job counseling, assistance in es-
tablishing microenterprises, or other services to pro-
vide individuals with the support and skills necessary
to obtain and keep employment in the private sector.
‘‘(5) 2-YEAR LIMITATION ON PARTICIPATION.—
The program shall comply with section 487(b).
‘‘(6) AGREEMENTS OF MUTUAL RESPONSIBIL-
ITY.—
‘‘(A) IN
GENERAL.—The State agency
shall develop an agreement of mutual respon-
sibility for each program participant, which will
be an individualized comprehensive plan, devel-
oped by the team and the participant, to move
the participant into a full-time unsubsidized
job. The agreement should detail the education,
training, or skills that the individual will be re-
ceiving to obtain a full-time unsubsidized job,
and the obligations of the individual.
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‘‘(B) HOURS OF PARTICIPATION REQUIRE-
MENT.—The agreement shall provide that the
individual shall participate in activities in ac-
cordance with the agreement for—
‘‘(i) not fewer than 20 hours per week
during fiscal years 1997 and 1998;
‘‘(ii) not fewer than 25 hours per
week during fiscal year 1999; and
‘‘(iii) not fewer than 30 hours per
week thereafter.
‘‘(7) CASELOAD
PARTICIPATION
RATES.—The
program shall comply with section 488.
‘‘(8) NONDISPLACEMENT.—The program may
not be operated in a manner that results in—
‘‘(A) the displacement of a currently em-
ployed worker or position by a program partici-
pant;
‘‘(B) the replacement of an employee who
has been terminated with a program partici-
pant; or
‘‘(C) the replacement of an individual who
is on layoff from the same position given to a
program participant or any equivalent position.
‘‘(b) ANNUAL REPORTS.—
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‘‘(1) COMPLIANCE WITH PERFORMANCE MEAS-
URES.—Each State that operates a program under
this part shall submit to the Secretary annual re-
ports that compare the achievements of the program
with the performance-based measures established
under section 488(c).
‘‘(2) 
COMPLIANCE
WITH
PARTICIPATION
RATES.—Each State that operates a program under
this part for a fiscal year shall submit to the Sec-
retary a report on the participation rate of the State
for the fiscal year.
‘‘SEC. 482. REVAMPED JOBS PROGRAM.
‘‘A State that establishes a program under this part
may operate a program similar to the program known as
the ‘GAIN Program’ that has been operated by Riverside
County, California, under Federal law in effect imme-
diately before the date this part first applies to the State
of California.
‘‘SEC. 483. USE OF PLACEMENT COMPANIES.
‘‘(a) IN GENERAL.—A State that establishes a pro-
gram under this part may enter into contracts with private
companies (whether operated for profit or not for profit)
for the placement of participants in the program in posi-
tions of full-time employment, preferably in the private
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sector, for wages sufficient to eliminate the need of such
participants for cash assistance.
‘‘(b) REQUIRED CONTRACT TERMS.—Each contract
entered into under this section with a company shall meet
the following requirements:
‘‘(1) PROVISION OF JOB READINESS AND SUP-
PORT
SERVICES.—The contract shall require the
company to provide, to any program participant who
presents to the company a voucher issued under sub-
section (d) intensive personalized support and job
readiness services designed to prepare the individual
for employment and ensure the continued success of
the individual in employment.
‘‘(2) PAYMENTS.—
‘‘(A) IN
GENERAL.—The contract shall
provide for payments to be made to the com-
pany with respect to each program participant
who presents to the company a voucher issued
under subsection (d).
‘‘(B) STRUCTURE.—The contract shall
provide for the majority of the amounts to be
paid under the contract with respect to a pro-
gram participant, to be paid after the company
has placed the participant in a position of full-
time employment and the participant has been
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employed in the position for such period of not
less than 5 months as the State deems appro-
priate.
‘‘(c) COMPETITIVE BIDDING REQUIRED.—Contracts
under this section shall be awarded only after competitive
bidding.
‘‘(d) VOUCHERS.—The State shall issue a voucher to
each program participant whose agreement of mutual re-
sponsibility provides for the use of placement companies
under this section, indicating that the participant is eligi-
ble for the services of such a company.
‘‘SEC. 484. TEMPORARY SUBSIDIZED JOB CREATION.
‘‘A State that establishes a program under this part
may establish a program similar to the program known
as ‘JOBS Plus’ that has been operated by the State of
Oregon under Federal law in effect immediately before the
date this part first applies to the State of Oregon.
‘‘SEC. 485. MICROENTERPRISE.
‘‘(a) GRANTS AND LOANS TO NONPROFIT ORGANIZA-
TIONS FOR THE PROVISION OF TECHNICAL ASSISTANCE,
TRAINING, AND
CREDIT
TO
LOW
INCOME
ENTRE-
PRENEURS.—A State that establishes a program under
this part may make grants and loans to nonprofit organi-
zations to provide technical assistance, training, and credit
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to low income entrepreneurs for the purpose of establish-
ing microenterprises.
‘‘(b) MICROENTERPRISE DEFINED.—For purposes of
this subsection, the term ‘microenterprise’ means a com-
mercial enterprise which has 5 or fewer employees, 1 or
more of whom owns the enterprise.
‘‘SEC. 486. WORK SUPPLEMENTATION PROGRAM.
‘‘(a) IN GENERAL.—A State that establishes a pro-
gram 
under 
this 
part 
may 
institute 
a 
work
supplementation program under which the State, to the
extent it considers appropriate, may reserve the sums that
would otherwise be payable under the State plan approved
under part A to participants in the program and use the
sums instead for the purpose of providing and subsidizing
jobs for the participants (as described in subsection (c)(3)
(A) and (B)), as an alternative to providing such assist-
ance to the participants.
‘‘(b) STATE FLEXIBILITY.—
‘‘(1) Nothing in this part, or in any State plan
approved under part A, shall be construed to prevent
a State from operating (on such terms and condi-
tions and in such cases as the State may find to be
necessary or appropriate) a work supplementation
program in accordance with this section and section
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484 (as in effect immediately before the date this
part first applies to the State).
‘‘(2) Notwithstanding any other provision of
law, a State may adjust the levels of the standards
of need under the State plan as the State determines
to be necessary and appropriate for carrying out a
work supplementation program under this section.
‘‘(3) Notwithstanding any other provision of
law, a State operating a work supplementation pro-
gram under this section may provide that the need
standards in effect in those areas of the State in
which the program is in operation may be different
from the need standards in effect in the areas in
which the program is not in operation, and the State
may provide that the need standards for categories
of recipients may vary among such categories to the
extent the State determines to be appropriate on the
basis of ability to participate in the work
supplementation program.
‘‘(4) Notwithstanding any other provision of
law, a State may make such further adjustments in
the amounts of assistance provided under the plan
to different categories of recipients (as determined
under paragraph (3)) in order to offset increases in
benefits from needs-related programs (other than
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the State plan approved under part A) as the State
determines to be necessary and appropriate to fur-
ther the purposes of the work supplementation pro-
gram.
‘‘(5) In determining the amounts to be reserved
and used for providing and subsidizing jobs under
this section as described in subsection (a), the State
may use a sampling methodology.
‘‘(6) Notwithstanding any other provision of
law, a State operating a work supplementation pro-
gram under this section, may reduce or eliminate the
amount of earned income to be disregarded under
the State plan as the State determines to be nec-
essary and appropriate to further the purposes of
the work supplementation program.
‘‘(c) RULES RELATING TO SUPPLEMENTED JOBS.—
‘‘(1) A work supplementation program operated
by a State under this section may provide that any
individual who is an eligible individual (as deter-
mined under paragraph (2)) shall take a supple-
mented job (as defined in paragraph (3)) to the ex-
tent that supplemented jobs are available under the
program. Payments by the State to individuals or to
employers under the work supplementation program
shall be treated as expenditures incurred by the
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State for temporary employment assistance under
part A except as limited by subsection (d).
‘‘(2) For purposes of this section, an eligible in-
dividual is an individual who is in a category which
the State determines should be eligible to participate
in the work supplementation program, and who
would, at the time of placement in the job involved,
be eligible for assistance under an approved State
plan 
if 
the 
State 
did 
not 
have 
a 
work
supplementation program in effect.
‘‘(3) For purposes of this subsection, a supple-
mented job is—
‘‘(A) a job provided to an eligible individ-
ual by the State or local agency administering
the State plan under part A; or
‘‘(B) a job provided to an eligible individ-
ual by any other employer for which all or part
of the wages are paid by the State or local
agency.
A State may provide or subsidize under the program
any job which the State determines to be appro-
priate.
‘‘(d) COST LIMITATION.—The amount of the Federal
payment to a State under section 413 for expenditures in-
curred in making payments to individuals and employers
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under a work supplementation program under this sub-
section shall not exceed an amount equal to the amount
which would otherwise be payable under such section if
the family of each individual employed in the program es-
tablished in the State under this section had received the
maximum amount of assistance providable under the State
plan to such a family with no income (without regard to
adjustments under subsection (b) of this section) for the
lesser of—
‘‘(1) 9 months; or
‘‘(2) the number of months in which the indi-
vidual was employed in the program.
‘‘(e) RULES OF INTERPRETATION.—
‘‘(1) This section shall not be construed as re-
quiring the State or local agency administering the
State plan to provide employee status to an eligible
individual to whom the State or local agency pro-
vides a job under the work supplementation program
(or with respect to whom the State or local agency
provides all or part of the wages paid to the individ-
ual by another entity under the program), or as re-
quiring any State or local agency to provide that an
eligible individual filling a job position provided by
another entity under the program be provided em-
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ployee status by the entity during the first 13 weeks
the individual fills the position.
‘‘(2) Wages paid under a work supplementation
program shall be considered to be earned income for
purposes of any provision of law.
‘‘(f) PRESERVATION OF MEDICAID ELIGIBILITY.—
Any State that chooses to operate a work supplementation
program under this section shall provide that any individ-
ual who participates in the program, and any child or rel-
ative of the individual (or other individual living in the
same household as the individual) who would be eligible
for assistance under the State plan approved under part
A if the State did not have a work supplementation pro-
gram, shall be considered individuals receiving assistance
under the State plan approved under part A for purposes
of eligibility for medical assistance under the State plan
approved under title XIX.
‘‘SEC. 487. PARTICIPATION RULES.
‘‘(a) IN GENERAL.—Except as provided in subsection
(b), a State that establishes a program under this part
may require any individual receiving assistance under the
State plan approved under part A to participate in the
program.
‘‘(b) 2-YEAR LIMITATION ON PARTICIPATION.—
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‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), an individual may not participate in a
State program established under this part if the in-
dividual has participated in the State program es-
tablished under this part for 24 months after the
date the individual first signed an agreement of mu-
tual responsibility under this part, excluding any
month during which the individual worked for an av-
erage of at least 25 hours per week in a private sec-
tor job.
‘‘(2) AUTHORITY TO ALLOW REPEAT PARTICI-
PATION.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B) of this paragraph, a State may allow
an individual who, by reason of paragraph (1),
would be prohibited from participating in the
State program established under this part to
participate in the program for such additional
period or periods as the State determines ap-
propriate.
‘‘(B) LIMITATION ON PERCENTAGE OF RE-
PEAT PARTICIPANTS.—
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii) of this subparagraph,
the number of individuals allowed under
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subparagraph (A) to participate during a
program year in a State program estab-
lished under this part shall not exceed—
‘‘(I) 10 percent of the total num-
ber of individuals who participated in
the State program established under
this part or the State program estab-
lished under part H during the imme-
diately preceding program year; or
‘‘(II) in the case of fiscal year
2004 or any succeeding fiscal year, 15
percent of such total number of indi-
viduals.
‘‘(ii) AUTHORITY TO INCREASE LIMI-
TATION.—
‘‘(I) PETITION.—A State may re-
quest the Secretary to increase to not
more than 15 percent the percentage
limitation imposed by clause (i)(I) for
a fiscal year before fiscal year 2004.
‘‘(II) AUTHORITY TO GRANT RE-
QUEST.—The Secretary may approve
a request made pursuant to subclause
(I) if the Secretary deems it appro-
priate. The Secretary shall develop
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recommendations on the criteria that
should be applied in evaluating re-
quests under subclause (I).
‘‘SEC. 488. CASELOAD PARTICIPATION RATES; PERFORM-
ANCE MEASURES.
‘‘(a) PARTICIPATION RATES.—
‘‘(1) REQUIREMENT.—A State that operates a
program under this part shall achieve a participation
rate for the following fiscal years of not less than
the following percentage:
‘‘Fiscal year:
Percentage:
1997 .........................................................................................
1998 .........................................................................................
1999 .........................................................................................
2000 .........................................................................................
2001 .........................................................................................
2002 .........................................................................................
2003 or later ............................................................................
52.
‘‘(2) PARTICIPATION RATE DEFINED.—
‘‘(A) IN GENERAL.—As used in this sub-
section, the term ‘participation rate’ means,
with respect to a State and a fiscal year, an
amount equal to—
‘‘(i) the average monthly number of
individuals who, during the fiscal year,
participate in the State program estab-
lished under this part or (if applicable)
part G or H; divided by
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‘‘(ii) the average monthly number of
individuals who are not described in sec-
tion 402(c)(1)(D) and for whom an indi-
vidual responsibility plan is in effect under
section 403 during the fiscal year.
‘‘(B) SPECIAL RULE.—For each of the 1st
12 months after an individual ceases to receive
assistance under a State plan approved under
part A by reason of having become employed
for more than 25 hours per week in an
unsubsidized job in the private sector, the indi-
vidual shall be considered to be participating in
the State program established under this part,
and to be an adult recipient of such assistance,
for purposes of subparagraph (A).
‘‘(3) STATE
COMPLIANCE
REPORTS.—Each
State that operates a program under this part for a
fiscal year shall submit to the Secretary a report on
the participation rate of the State for the fiscal year.
‘‘(4) EFFECT OF FAILURE TO MEET PARTICIPA-
TION RATES.—
‘‘(A) IN GENERAL.—If a State reports that
the State has failed to achieve the participation
rate required by paragraph (1) for the fiscal
year, the Secretary may make recommendations
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for changes in the State program established
under this part and (if the State has estab-
lished a program under part G) the State pro-
gram established under part G. The State may
elect to follow such recommendations, and shall
demonstrate to the Secretary how the State will
achieve the required participation rates.
‘‘(B) SECOND
CONSECUTIVE
FAILURE.—
Notwithstanding subparagraph (A), if a State
fails to achieve the participation rate required
by paragraph (1) for 2 consecutive fiscal years,
the Secretary may—
‘‘(i) require the State to make
changes in the State program established
under this part and (if the State has estab-
lished a program under part G) the State
program established under part G; and
‘‘(ii) reduce by 5 percent the amount
otherwise payable to the State under sec-
tion 413.
‘‘(b) PERFORMANCE STANDARDS.—The Secretary
shall develop standards to be used to measure the effec-
tiveness of the programs established under this part and
part G in moving recipients of assistance under the State
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plan approved under part A into full-time unsubsidized
employment.
‘‘(c) PERFORMANCE-BASED MEASURES.—
‘‘(1) ESTABLISHMENT.—The Secretary shall, by
regulation, establish measures of the effectiveness of
the State programs established under this part and
under part G in moving recipients of assistance
under the State plan approved under part A into
full-time unsubsidized employment, based on the
performance of such programs.
‘‘(2) ANNUAL
COMPLIANCE
REPORTS.—Each
State that operates a program under this part shall
submit to the Secretary annual reports that compare
the achievements of the program with the perform-
ance-based measures established under paragraph
(1).
‘‘SEC. 489. FEDERAL ROLE.
‘‘(a) APPROVAL OF STATE PLANS.—
‘‘(1) IN GENERAL.—Within 60 days after the
date a State submits to the Secretary a plan that
provides for the establishment and operation of a
work first program that meets the requirements of
section 481, the Secretary shall approve the plan.
‘‘(2) AUTHORITY TO EXTEND APPROVAL DEAD-
LINE.—The 60-day deadline established in para-
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graph (1) with respect to a State may be extended
in accordance with an agreement between the Sec-
retary and the State.
‘‘(b) PERFORMANCE-BASED MEASURES.—The Sec-
retary shall, by regulation, establish measures of the effec-
tiveness of the State program established under this part
and (if the State has established a program under part
G) the State program established under part G in moving
recipients of assistance under the State plan approved
under part A into full-time unsubsidized employment,
based on the performance of such programs.
‘‘(c) EFFECT OF FAILURE TO MEET PARTICIPATION
RATES.—
‘‘(1) IN GENERAL.—If a State reports that the
State has failed to achieve the participation rate re-
quired by section 488 for the fiscal year, the Sec-
retary may make recommendations for changes in
the State program established under this part and
(if the State has established a program under part
G) the State program established under part G. The
State may elect to follow such recommendations, and
shall demonstrate to the Secretary how the State
will achieve the required participation rates.
‘‘(2) SECOND
CONSECUTIVE
FAILURE.—Not-
withstanding paragraph (1), if the State has failed
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to achieve the participation rates required by section
488 for 2 consecutive fiscal years, the Secretary may
require the State to make changes in the State pro-
gram established under this part and (if the State
has established a program under part G) the State
program established under part G.
‘‘PART G—WORKFARE PROGRAM
‘‘SEC. 490. ESTABLISHMENT AND OPERATION OF PROGRAM.
‘‘(a) IN GENERAL.—A State that establishes a work
first program under part F may establish and carry out
a workfare program that meets the requirements of this
part, unless the State has established a job placement
voucher program under part H.
‘‘(b) OBJECTIVE.—The objective of the workfare pro-
gram is for each program participant to find and hold a
full-time unsubsidized paid job, and for this goal to be
achieved in a cost-effective fashion.
‘‘(c) CASE MANAGEMENT TEAMS.—The State shall
assign to each program participant a case management
team that shall meet with the participant and assist the
participant to choose the most suitable workfare job under
subsection (e), (f), or (g) and to eventually obtain a full-
time unsubsidized paid job.
‘‘(d) PROVISION OF JOBS.—The State shall provide
each participant in the program with a community service
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job that meets the requirements of subsection (e) or a sub-
sidized job that meets the requirements of subsection (f)
or (g).
‘‘(e) COMMUNITY SERVICE JOBS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graphs (2) and (3), each participant shall work for
not fewer than 30 hours per week (or, at the option
of the State, 20 hours per week during fiscal years
1997 and 1998, not fewer than 25 hours per week
during fiscal year 1999, not fewer than 30 hours per
week during fiscal years 2000 and 2001, and not
fewer than 35 hours per week thereafter) in a com-
munity service job, and be paid at a rate which is
not greater than 75 percent (or, at the option of the
State, 100 percent) of the maximum amount of as-
sistance that may be provided under the State plan
approved under part A to a family of the same size
and composition with no income.
‘‘(2) EXCEPTION.—(A) If the participant has
obtained unsubsidized part-time employment in the
private sector, the State shall provide the participant
with a part-time community service job.
‘‘(B) If the State provides a participant a part-
time community service job under subparagraph (A),
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the State shall ensure that the participant works for
not fewer than 30 hours per week.
‘‘(3) WAGES
NOT
CONSIDERED
EARNED
IN-
COME.—Wages paid under a workfare program shall
not be considered to be earned income for purposes
of any provision of law.
‘‘(4) COMMUNITY SERVICE JOB DEFINED.—For
purposes of this section, the term ‘community serv-
ice job’ means—
‘‘(A) a job provided to a participant by the
State administering the State plan under part
A; or
‘‘(B) a job provided to a participant by any
other employer for which all or part of the
wages are paid by the State.
A State may provide or subsidize under the program
any job which the State determines to be appro-
priate.
‘‘(f) TEMPORARY SUBSIDIZED JOB CREATION.—A
State that establishes a workfare program under this part
may establish a program similar to the program operated
by the State of Oregon, which is known as ‘JOBS Plus’.
‘‘(g) WORK SUPPLEMENTATION PROGRAM.—
‘‘(1) IN GENERAL.—A State that establishes a
workfare program under this part may institute a
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work supplementation program under which the
State, to the extent it considers appropriate, may re-
serve the sums that would otherwise be payable to
participants in the program as a community service
minimum wage and use the sums instead for the
purpose of providing and subsidizing private sector
jobs for the participants.
‘‘(2) EMPLOYER
AGREEMENT.—An employer
who provides a private sector job to a participant
under paragraph (1) shall agree to provide to the
participant an amount in wages equal to the poverty
threshold for a family of three.
‘‘(h) JOB SEARCH REQUIREMENT.—The State shall
require each participant to spend a minimum of 5 hours
per week on activities related to securing unsubsidized
full-time employment in the private sector.
‘‘(i) DURATION OF PARTICIPATION.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), an individual may not participate for
more than 2 years in a workfare program under this
part.
‘‘(2) AUTHORITY
TO
ALLOW
REPEATED
PAR-
TICIPATION.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), a State may allow an individual
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who, by reason of paragraph (1), would be pro-
hibited from participating in the State program
established under this part to participate in the
program for such additional period or periods
as the State determines appropriate.
‘‘(B) LIMITATION ON PERCENTAGE OF RE-
PEAT PARTICIPANTS.—
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), the number of individ-
uals allowed under subparagraph (A) to
participate during a program year in a
State program established under this part
shall not exceed 10 percent of the total
number of individuals who participated in
the program during the immediately pre-
ceding program year.
‘‘(ii) AUTHORITY TO INCREASE LIMI-
TATION.—
‘‘(I) PETITION.—A State may re-
quest the Secretary to increase the
percentage 
limitation 
imposed 
by
clause (i) to not more than 15 per-
cent.
‘‘(II) AUTHORITY TO GRANT RE-
QUEST.—The Secretary may approve
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a request made pursuant to subclause
(I) if the Secretary deems it appro-
priate. The Secretary shall develop
recommendations on the criteria that
should be applied in evaluating re-
quests under subclause (I).
‘‘(j) USE OF PLACEMENT COMPANIES.—A State that
establishes a workfare program under this part may enter
into contracts with private companies (whether operated
for profit or not for profit) for the placement of partici-
pants in the program in positions of full-time employment,
preferably in the private sector, for wages sufficient to
eliminate the need of such participants for cash assistance
in accordance with section 483.
‘‘(k) MAXIMUM OF 3 COMMUNITY SERVICE JOBS.—
A program participant may not receive more than 3 com-
munity service jobs under the program.
‘‘PART H—JOB PLACEMENT VOUCHER PROGRAM
‘‘SEC. 490A. JOB PLACEMENT VOUCHER PROGRAM.
‘‘A State that is not operating a workfare program
under part G may establish a job placement voucher pro-
gram that meets the following requirements:
‘‘(1) The program shall offer each program par-
ticipant a voucher which the participant may use to
obtain employment in the private sector.
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‘‘(2) An employer who receives a voucher issued
under the program from an individual may redeem
the voucher at any time after the individual has been
employed by the employer for 6 months, unless an-
other employee of the employer was displaced by the
employment of the individual.
‘‘(3) Upon presentation of a voucher by an em-
ployer to the State agency responsible for the admin-
istration of the program, the State agency shall pay
to the employer an amount equal to 50 percent of
the total amount of assistance provided under the
State plan approved under part A to the family of
which the individual is a member for the most recent
12 months for which the family was eligible for such
assistance.’’.
(c) FUNDING.—Section 413(a), as added by section
9101(a) of this Act, is amended—
(1) by striking ‘‘Subject to’’ and inserting the
following:
‘‘(1) IN GENERAL.—Subject to’’; and
(2) by inserting after and below the end the fol-
lowing:
‘‘(2) WORK FIRST AND OTHER PROGRAMS.—(A)
Each State that is operating a program in accord-
ance with a plan approved under part F and a pro-
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‘‘(III) $1,900,000,000 for fiscal year 1999;
‘‘(IV) $2,500,000,000 for fiscal year 2000;
and
‘‘(V) $3,200,000,000 for fiscal year 2001;
and
‘‘(VI) $4,700,000,000 for fiscal year 2002;
and
‘‘(VII) the amount determined under
clause (ii) for fiscal year 2003 and each suc-
ceeding fiscal year.
‘‘(ii) The amount determined under this clause
for a fiscal year is the product of the following:
‘‘(I) The amount specified in this subpara-
graph for the immediately preceding fiscal year.
‘‘(II) 1.00 plus the percentage (if any) by
which—
‘‘(aa) the average of the Consumer
Price Index (as defined in section 1(f)(5)
of the Internal Revenue Code of 1986) for
the most recent 12-month period for which
such information is available; exceeds
‘‘(bb) the average of the Consumer
Price Index (as so defined) for the 12-
month period ending on June 30 of the
2nd preceding fiscal year.
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‘‘(III) The amount that bears the same
ratio to the amount specified in this subpara-
graph for the immediately preceding fiscal year
as the number of individuals whom the Sec-
retary estimates will participate in programs
operated under part F, G, or H during the fis-
cal year bears to the total number of individuals
who participated in such programs during such
preceding fiscal year.
‘‘(D) For purposes of this paragraph, the term
‘adult recipient’ in the case of any State means an
individual other than a dependent child (unless such
child is the custodial parent of another dependent
child) whose needs are met (in whole or in part)
with assistance provided under the State plan ap-
proved under this part.
‘‘(E) For purposes of subparagraph (D), the
term ‘dependent child’ means a needy child (i) who
has been deprived of parental support or care by
reason of the death, continued absence from the
home (other than absence occasioned solely by rea-
son of the performance of active duty in the uni-
formed services of the United States), or physical or
mental incapacity of a parent, and who is living with
his father, mother, grandfather, grandmother, broth-
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er, sister, stepfather, stepmother, stepbrother, step-
sister, uncle, aunt, first cousin, nephew, or niece, in
a place of residence maintained by one or more of
such relatives as his or their own home, and (ii) who
is (I) under the age of eighteen, or (II) at the option
of the State, under the age of nineteen and a full-
time student in a secondary school (or in the equiva-
lent level of vocational or technical training), if, be-
fore he attains age nineteen, he may reasonably be
expected to complete the program of such secondary
school (or such training).
‘‘(F) For purposes of subparagraph (E), the
term ‘relative with whom any dependent child is liv-
ing’ means the individual who is one of the relatives
specified in subparagraph (E) and with whom such
child is living (within the meaning of such sub-
section) in a place of residence maintained by such
individual (himself or together with any one or more
of the other relatives so specified) as his (or their)
own home.
‘‘(3)(A) In lieu of any payment under para-
graph (1) therefor, the Secretary shall pay to each
State that is operating a program in accordance
with a plan approved under part F and a program
in accordance with part G or H, with respect to ex-
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penditures by the State to carry out such programs,
an amount equal to—
‘‘(i) with respect to so much of such ex-
penditures in a fiscal year as do not exceed the
State’s expenditures in the fiscal year 1987
with respect to which payments were made to
such State from its allotment for such fiscal
year pursuant to part C of this title as then in
effect, 90 percent; and
‘‘(ii) with respect to so much of such ex-
penditures in a fiscal year as exceed the amount
described in clause (i)—
‘‘(I) 50 percent, in the case of expend-
itures for administrative costs made by a
State in operating such programs for such
fiscal year (other than the personnel costs
for staff employed full-time in the oper-
ation of such program) and the costs of
transportation and other work-related sup-
portive services; and
‘‘(II) 60 percent or the Federal medi-
cal assistance percentage (as defined in the
last sentence of section 1118), whichever is
the greater, in the case of expenditures
made by a State in operating such pro-
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grams for such fiscal year (other than for
costs described in subclause (I)).
‘‘(B) With respect to the amount for which pay-
ment is made to a State under subparagraph (A)(i),
the State’s expenditures for the costs of operating
such programs may be in cash or in kind, fairly eval-
uated.
‘‘(C) Not more than 10 percent of the amount
payable to a State under this paragraph for a quar-
ter may be for expenditures made during the quarter
with respect to program participants who are not eli-
gible for assistance under the State plan approved
under this part.’’.
(d) SECRETARY’S SPECIAL ADJUSTMENT FUND.—
Section 413(a), as added by section 9101(a) of this Act,
is amended by adding at the end the following:
‘‘(4) 
SECRETARY’S
SPECIAL
ADJUSTMENT
FUND.—(A) There shall be available to the Sec-
retary from the amount appropriated for payments
under paragraph (2) for States’ programs under
parts F and G for fiscal year 1996, $300,000,000
for special adjustments to States’ limitations on
Federal payments for such programs.
‘‘(B) A State may, not later than March 1 and
September 1 of each fiscal year, submit to the Sec-
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retary a request to adjust the limitation on pay-
ments under this section with respect to its program
under part F (and, in fiscal years after 1997) its
program under part G for the following fiscal year.
The Secretary shall only consider such a request
from a State which has, or which demonstrates con-
vincingly on the basis of estimates that it will, sub-
mit allowable claims for Federal payment in the full
amount available to it under paragraph (2) in the
current fiscal year and obligated 95 percent of its
full amount in the prior fiscal year. The Secretary
shall by regulation prescribe criteria for the equi-
table allocation among the States of Federal pay-
ments pursuant to adjustments of the limitations re-
ferred to in the preceding sentence in the case where
the requests of all States that the Secretary finds
reasonable exceed the amount available, and, within
30 days following the dates specified in this para-
graph, will notify each State whether one or more of
its limitations will be adjusted in accordance with
the State’s request and the amount of the adjust-
ment (which may be some or all of the amount re-
quested).
‘‘(C) The Secretary may adjust the limitation
on Federal payments to a State for a fiscal year
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under paragraph (2), and upon a determination by
the Secretary that (and the amount by which) a
State’s limitation should be raised, the amount spec-
ified in such paragraph shall be considered to be so
increased for the following fiscal year.
‘‘(D) The amount made available under sub-
paragraph (A) for special adjustments shall remain
available to the Secretary until expended. That
amount shall be reduced by the sum of the adjust-
ments approved by the Secretary in any fiscal year,
and the amount shall be increased in a fiscal year
by the amount by which all States’ limitations under
paragraph (2) of this subsection and section 2008
for a fiscal year exceeded the sum of the Federal
payments under such provisons of law for such fiscal
year, but for fiscal years after 1997, such amount
at the end of such fiscal year shall not exceed
$400,000,000.’’.
(e) CONFORMING AMENDMENTS.—
(1) 
Section 
1115(b)(2)(A) 
(42 
U.S.C.
1315(b)(2)(A)) is amended by striking ‘‘, and
402(a)(19) (relating to the work incentive pro-
gram)’’.
(2) Section 1108 (42 U.S.C. 1308) is amend-
ed—
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(g) SENSE OF THE CONGRESS.—It is the sense of
the Congress that States should target individuals who
have not attained 25 years of age for participation in the
program established by the State under part F of title IV
of the Social Security Act (as added by the amendment
made by section 9301(a) of this section) in order to break
the cycle of welfare dependency.
SEC. 9302. REGULATIONS.
The Secretary of Health and Human Services shall
prescribe such regulations as may be necessary to imple-
ment the amendments made by this subtitle.
SEC. 9303. APPLICABILITY TO STATES.
(a) STATE OPTION TO ACCELERATE APPLICABIL-
ITY.—If a State formally notifies the Secretary of Health
and Human Services that the State desires to accelerate
the applicability to the State of the amendments made by
this subtitle, the amendments shall apply to the State on
and after such earlier date as the State may select.
(b) STATE OPTION TO DELAY APPLICABILITY UNTIL
WAIVERS EXPIRE.—The amendments made by this sub-
title shall not apply to a State with respect to which there
is in effect a waiver issued under section 1115 of the So-
cial Security Act for the State program established under
part F of title IV of such Act, until the waiver expires,
if the State formally notifies the Secretary of Health and
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Human Services that the State desires to so delay such
effective date.
(c) AUTHORITY OF THE SECRETARY OF HEALTH
AND HUMAN SERVICES TO DELAY APPLICABILITY TO A
STATE.—If a State formally notifies the Secretary of
Health and Human Services that the State desires to
delay the applicability to the State of the amendments
made by this title, the amendments shall apply to the
State on and after any later date agreed upon by the Sec-
retary and the State.
Subtitle D—Family Responsibility
And Improved Child Support
Enforcement
CHAPTER 
1—ELIGIBILITY 
AND 
OTHER
MATTERS CONCERNING TITLE IV–D
PROGRAM CLIENTS
SEC. 9401. STATE OBLIGATION TO PROVIDE PATERNITY ES-
TABLISHMENT 
AND 
CHILD 
SUPPORT 
EN-
FORCEMENT SERVICES.
(a) STATE LAW REQUIREMENTS.—Section 466(a)
(42 U.S.C. 666(a)) is amended by inserting after para-
graph (11) the following:
‘‘(12) USE OF CENTRAL CASE REGISTRY AND
CENTRALIZED
COLLECTIONS
UNIT.—Procedures
under which—
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‘‘(A) every child support order established
or modified in the State on or after October 1,
1998, is recorded in the central case registry
established in accordance with section 454A(e);
and
‘‘(B) child support payments are collected
through the centralized collections unit estab-
lished in accordance with section 454B—
‘‘(i) on and after October 1, 1998,
under each order subject to wage withhold-
ing under section 466(b); and
‘‘(ii) on and after October 1, 1999,
under each other order required to be re-
corded in such central case registry under
this paragraph or section 454A(e), except
as provided in subparagraph (C); and
‘‘(C)(i) parties subject to a child support
order described in subparagraph (B)(ii) may
opt out of the procedure for payment of support
through the centralized collections unit (but not
the procedure for inclusion in the central case
registry) by filing with the State agency a writ-
ten agreement, signed by both parties, to an al-
ternative payment procedure; and
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‘‘(ii) an agreement described in clause (i)
becomes void whenever either party advises the
State agency of an intent to vacate the agree-
ment.’’.
(b) STATE PLAN REQUIREMENTS.—Section 454 (42
U.S.C. 654) is amended—
(1) by striking paragraph (4) and inserting the
following:
‘‘(4) provide that such State will undertake—
‘‘(A) to provide appropriate services under
this part to—
‘‘(i) each child with respect to whom
an assignment is effective under section
403(b)(1)(E)(i), 471(a)(17), or 1912 (ex-
cept in cases where the State agency deter-
mines, in accordance with paragraph (25),
that it is against the best interests of the
child to do so); and
‘‘(ii) each child not described in clause
(i)—
‘‘(I) with respect to whom an in-
dividual applies for such services; and
‘‘(II) (on and after October 1,
1998) each child with respect to
whom a support order is recorded in
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the central State case registry estab-
lished under section 454A, regardless
of whether application is made for
services under this part; and
‘‘(B) to enforce the support obligation es-
tablished with respect to the custodial parent of
a child described in subparagraph (A) unless
the parties to the order which establishes the
support obligation have opted, in accordance
with section 466(a)(12)(C), for an alternative
payment procedure.’’; and
(2) in paragraph (6)—
(A) by striking subparagraph (A) and in-
serting the following:
‘‘(A) services under the State plan shall be
made available to nonresidents on the same
terms as to residents;’’;
(B) in subparagraph (B)—
(i) by inserting ‘‘on individuals not re-
ceiving assistance under part A’’ after
‘‘such services shall be imposed’’; and
(ii) by inserting ‘‘but no fees or costs
shall be imposed on any absent or custo-
dial parent or other individual for inclusion
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in the central State registry maintained
pursuant to section 454A(e)’’; and
(C) in each of subparagraphs (B), (C), and
(D)—
(i) by indenting such subparagraph
and aligning its left margin with the left
margin of subparagraph (A); and
(ii) by striking the final comma and
inserting a semicolon.
(c) CONFORMING AMENDMENTS.—
(1) 
Section 
452(g)(2)(A) 
(42 
U.S.C.
652(g)(2)(A)) is amended by striking ‘‘454(6)’’ each
place it appears and inserting ‘‘454(4)(A)(ii)’’.
(2) Section 454(23) (42 U.S.C. 654(23)) is
amended, effective October 1, 1998, by striking ‘‘in-
formation as to any application fees for such services
and’’.
(3) 
Section 
466(a)(3)(B) 
(42 
U.S.C.
666(a)(3)(B)) is amended by striking ‘‘in the case of
overdue support which a State has agreed to collect
under section 454(6)’’ and inserting ‘‘in any other
case’’.
(4) Section 466(e) (42 U.S.C. 666(e)) is
amended by striking ‘‘or (6)’’.
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SEC. 9402. DISTRIBUTION OF PAYMENTS.
(a) DISTRIBUTIONS THROUGH STATE CHILD SUP-
PORT ENFORCEMENT AGENCY TO FORMER ASSISTANCE
RECIPIENTS.—Section 454(5) (42 U.S.C. 654(5)) is
amended—
(1) in subparagraph (A)—
(A) by striking ‘‘section 402(a)(26) is ef-
fective,’’ and inserting ‘‘section 403(b)(1)(E)(i)
is effective, except as otherwise specifically pro-
vided in section 464 or 466(a)(3),’’; and
(B) by striking ‘‘except that’’ and all that
follows through the semicolon; and
(2) in subparagraph (B), by striking ‘‘, except’’
and all that follows through ‘‘medical assistance’’.
(b) DISTRIBUTION TO A FAMILY CURRENTLY RE-
CEIVING TEMPORARY EMPLOYMENT ASSISTANCE.—Sec-
tion 457 (42 U.S.C. 657) is amended—
(1) by striking subsection (a) and redesignating
subsection (b) as subsection (a);
(2) in subsection (a) (as so redesignated)—
(A) in the matter preceding paragraph (2),
to read as follows:
‘‘(a) IN THE CASE OF A FAMILY RECEIVING TEA.—
Amounts collected under this part during any month as
support of a child who is receiving assistance under part
A (or a parent or caretaker relative of such a child) shall
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(except in the case of a State exercising the option under
subsection (b)) be distributed as follows:
‘‘(1) an amount equal to the amount that will
be disregarded pursuant to section 402(d)(2)(C)
shall be taken from each of—
‘‘(A) the amounts received in a month
which represent payments for that month; and
‘‘(B) the amounts received in a month
which represent payments for a prior month
which were made by the absent parent in that
prior month;
and shall be paid to the family without affecting its
eligibility for assistance or decreasing any amount
otherwise payable as assistance to such family dur-
ing such month;’’;
(B) in paragraph (4), by striking ‘‘or (B)’’
and all that follows through the period and in-
serting ‘‘; then (B) from any remainder,
amounts equal to arrearages of such support
obligations assigned, pursuant to part A, to any
other State or States shall be paid to such
other State or States and used to pay any such
arrearages (with appropriate reimbursement of
the Federal Government to the extent of its
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participation in the financing); and then (C)
any remainder shall be paid to the family.’’; and
(3) by inserting after subsection (a) (as so re-
designated) the following new subsection:
‘‘(b) ALTERNATIVE DISTRIBUTION IN CASE OF FAM-
ILY RECEIVING TEA.—In the case of a State electing the
option under this subsection, amounts collected as de-
scribed in subsection (a) shall be distributed as follows:
‘‘(1) an amount equal to the amount that will
be disregarded pursuant to section 402(d)(2)(C)
shall be taken from each of—
‘‘(A) the amounts received in a month
which represent payments for that month; and
‘‘(B) the amounts received in a month
which represent payments for a prior month
which were made by the absent parent in that
prior month;
and shall be paid to the family without affecting its
eligibility for assistance or decreasing any amount
otherwise payable as assistance to such family dur-
ing such month;
‘‘(2) second, from any remainder, amounts
equal to the balance of support owed for the current
month shall be paid to the family;
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‘‘(3) third, from any remainder, amounts equal
to arrearages of such support obligations assigned,
pursuant to part A, to the State making the collec-
tion shall be retained and used by such State to pay
any such arrearages (with appropriate reimburse-
ment of the Federal Government to the extent of its
participation in the financing);
‘‘(4) fourth, from any remainder, amounts
equal to arrearages of such support obligations as-
signed, pursuant to part A, to any other State or
States shall be paid to such other State or States
and used to pay any such arrearages (with appro-
priate reimbursement of the Federal Government to
the extent of its participation in the financing); and
‘‘(5) fifth, any remainder shall be paid to the
family.’’.
(c) DISTRIBUTION TO A FAMILY NOT RECEIVING
TEA.—Section 457(c) (42 U.S.C. 657(c)) is amended to
read as follows:
‘‘(c) DISTRIBUTIONS IN CASE OF FAMILY NOT RE-
CEIVING TEA.—Amounts collected by a State agency
under this part during any month as support of a child
who is not receiving assistance under part A (or of a par-
ent or caretaker relative of such a child) shall (subject to
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the remaining provisions of this section) be distributed as
follows:
‘‘(1) first, amounts equal to the total of such
support owed for such month shall be paid to the
family;
‘‘(2) second, from any remainder, amounts
equal to arrearages of such support obligations for
months during which such child did not receive as-
sistance under part A shall be paid to the family;
‘‘(3) third, from any remainder, amounts equal
to arrearages of such support obligations assigned to
the State making the collection pursuant to part A
shall be retained and used by such State to pay any
such arrearages (with appropriate reimbursement of
the Federal Government to the extent of its partici-
pation in the financing); and
‘‘(4) fourth, from any remainder, amounts
equal to arrearages of such support obligations as-
signed to any other State pursuant to part A shall
be paid to such other State or States, and used to
pay such arrearages, in the order in which such ar-
rearages accrued (with appropriate reimbursement
of the Federal Government to the extent of its par-
ticipation in the financing).’’.
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(d) DISTRIBUTION TO A CHILD RECEIVING ASSIST-
ANCE UNDER TITLE IV–E.—Section 457(d) (42 U.S.C.
657(d)) is amended, in the matter preceding paragraph
(1), by striking ‘‘Notwithstanding the preceding provisions
of this section, amounts’’ and inserting the following:
‘‘(d) DISTRIBUTIONS IN CASE OF A CHILD RECEIV-
ING ASSISTANCE UNDER TITLE IV–E.—Amounts’’.
(e) REGULATIONS.—The Secretary of Health and
Human Services shall promulgate regulations under part
A of title IV of the Social Security Act, establishing stand-
ards applicable to States electing the alternative formula
under section 457(b) of such Act for distribution of collec-
tions on behalf of families receiving temporary employ-
ment assistance, designed to minimize irregular monthly
payments to such families.
(f) CLERICAL
AMENDMENTS.—Section 454 (42
U.S.C. 654) is amended—
(1) in paragraph (11)—
(A) by striking ‘‘(11)’’ and inserting
‘‘(11)(A)’’; and
(B) by inserting after the semicolon ‘‘and’’;
and
(2) by redesignating paragraph (12) as sub-
paragraph (B) of paragraph (11).
(g) EFFECTIVE DATES.—
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SEC. 9403. DUE PROCESS RIGHTS.
(a) IN GENERAL.—Section 454 (42 U.S.C. 654), as
amended by section 9402(f) of this Act, is amended by
inserting after paragraph (11) the following new para-
graph:
‘‘(12) provide for procedures to ensure that—
‘‘(A) individuals who are applying for or
receiving services under this part, or are parties
to cases in which services are being provided
under this part—
‘‘(i) receive notice of all proceedings in
which support obligations might be estab-
lished or modified; and
‘‘(ii) receive a copy of any order estab-
lishing or modifying a child support obliga-
tion, or (in the case of a petition for modi-
fication) a notice of determination that
there should be no change in the amount
of the child support award, within 14 days
after issuance of such order or determina-
tion;
‘‘(B) individuals applying for or receiving
services under this part have access to a fair
hearing that meets standards established by the
Secretary and ensures prompt consideration
and resolution of complaints (but the resort to
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such procedure shall not stay the enforcement
of any support order); and
‘‘(C) individuals adversely affected by the
establishment or modification of (or, in the case
of a petition for modification, the determination
that there should be no change in) a child sup-
port order shall be afforded not less than 30
days after the receipt of the order or determina-
tion to initiate proceedings to challenge such
order or determination;’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall become effective on October 1, 1997.
SEC. 9404. PRIVACY SAFEGUARDS.
(a) STATE PLAN REQUIREMENT.—Section 454 (42
U.S.C. 454) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(23);
(2) by striking the period at the end of para-
graph (24) and inserting ‘‘; and’’; and
(3) by adding after paragraph (24) the follow-
ing:
‘‘(25) will have in effect safeguards applicable
to all sensitive and confidential information handled
by the State agency designed to protect the privacy
rights of the parties, including—
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‘‘(A) safeguards against unauthorized use
or disclosure of information relating to proceed-
ings or actions to establish paternity, or to es-
tablish or enforce support;
‘‘(B) prohibitions on the release of infor-
mation on the whereabouts of one party to an-
other party against whom a protective order
with respect to the former party has been en-
tered; and
‘‘(C) prohibitions on the release of infor-
mation on the whereabouts of one party to an-
other party if the State has reason to believe
that the release of the information may result
in physical or emotional harm to the former
party.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall become effective on October 1, 1997.
CHAPTER 2—PROGRAM ADMINISTRATION
AND FUNDING
SEC. 9411. FEDERAL MATCHING PAYMENTS.
(a) INCREASED BASE MATCHING RATE.—Section
455(a)(2) (42 U.S.C. 655(a)(2)) is amended to read as
follows:
‘‘(2) The applicable percent for a quarter for
purposes of paragraph (1)(A) is—
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‘‘(A) for fiscal year 1997, 69 percent,
‘‘(B) for fiscal year 1998, 72 percent, and
‘‘(C) for fiscal year 1999 and succeeding
fiscal years, 75 percent.’’.
(b) MAINTENANCE OF EFFORT.—Section 455 (42
U.S.C. 655) is amended—
(1) in subsection (a)(1), in the matter preced-
ing subparagraph (A), by striking ‘‘From’’ and in-
serting ‘‘Subject to subsection (c), from’’; and
(2) by inserting after subsection (b) the follow-
ing new subsection:
‘‘(c) MAINTENANCE OF EFFORT.—Notwithstanding
the provisions of subsection (a), total expenditures for the
State program under this part for fiscal year 1997 and
each succeeding fiscal year, reduced by the percentage
specified for such fiscal year under subsection (a)(2)(A),
(B), or (C)(i), shall not be less than such total expendi-
tures for fiscal year 1996, reduced by 66 percent.’’.
SEC. 9412. PERFORMANCE-BASED INCENTIVES AND PEN-
ALTIES.
(a) INCENTIVE ADJUSTMENTS TO FEDERAL MATCH-
ING RATE.—Section 458 (42 U.S.C. 658) is amended to
read as follows:
‘‘INCENTIVE ADJUSTMENTS TO MATCHING RATE
‘‘SEC. 458. (a) INCENTIVE ADJUSTMENT.—(1) IN
GENERAL.—In order to encourage and reward State child
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support enforcement programs which perform in an effec-
tive manner, the Federal matching rate for payments to
a State under section 455(a)(1)(A), for each fiscal year
beginning on or after October 1, 1998, shall be increased
by a factor reflecting the sum of the applicable incentive
adjustments (if any) determined in accordance with regu-
lations under this section with respect to Statewide pater-
nity establishment and to overall performance in child sup-
port enforcement.
‘‘(2) STANDARDS.—(A) IN GENERAL.—The Sec-
retary shall specify in regulations—
‘‘(i) the levels of accomplishment, and rates of
improvement as alternatives to such levels, which
States must attain to qualify for incentive adjust-
ments under this section; and
‘‘(ii) the amounts of incentive adjustment that
shall be awarded to States achieving specified ac-
complishment or improvement levels, which amounts
shall be graduated, ranging up to—
‘‘(I) 5 percentage points, in connection
with Statewide paternity establishment; and
‘‘(II) 10 percentage points, in connection
with overall performance in child support en-
forcement.
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‘‘(B) LIMITATION.—In setting performance stand-
ards pursuant to subparagraph (A)(i) and adjustment
amounts pursuant to subparagraph (A)(ii), the Secretary
shall ensure that the aggregate number of percentage
point increases as incentive adjustments to all States do
not exceed such aggregate increases as assumed by the
Secretary in estimates of the cost of this section as of
June 1995, unless the aggregate performance of all States
exceeds the projected aggregate performance of all States
in such cost estimates.
‘‘(3) DETERMINATION
OF
INCENTIVE
ADJUST-
MENT.—The Secretary shall determine the amount (if
any) of incentive adjustment due each State on the basis
of the data submitted by the State pursuant to section
454(15)(B) concerning the levels of accomplishment (and
rates of improvement) with respect to performance indica-
tors specified by the Secretary pursuant to this section.
‘‘(4) FISCAL YEAR SUBJECT TO INCENTIVE ADJUST-
MENT.—The total percentage point increase determined
pursuant to this section with respect to a State program
in a fiscal year shall apply as an adjustment to the appli-
cable percent under section 455(a)(2) for payments to
such State for the succeeding fiscal year.
‘‘(5) RECYCLING OF INCENTIVE ADJUSTMENT.—A
State shall expend in the State program under this part
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all funds paid to the State by the Federal Government
as a result of an incentive adjustment under this section.
‘‘(b) MEANING OF TERMS.—For purposes of this sec-
tion—
‘‘(1) the term ‘Statewide paternity establish-
ment percentage’ means, with respect to a fiscal
year, the ratio (expressed as a percentage) of—
‘‘(A) the total number of out-of-wedlock
children in the State under one year of age for
whom paternity is established or acknowledged
during the fiscal year, to
‘‘(B) the total number of children born out
of wedlock in the State during such fiscal year;
and
‘‘(2) the term ‘overall performance in child sup-
port enforcement’ means a measure or measures of
the effectiveness of the State agency in a fiscal year
which takes into account factors including—
‘‘(A) the percentage of cases requiring a
child support order in which such an order was
established;
‘‘(B) the percentage of cases in which child
support is being paid;
‘‘(C) the ratio of child support collected to
child support due; and
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‘‘(D) the cost-effectiveness of the State
program, as determined in accordance with
standards established by the Secretary in regu-
lations.’’.
(b) ADJUSTMENT OF PAYMENTS UNDER PART D OF
TITLE IV.—Section 455(a)(2) (42 U.S.C. 655(a)(2)), as
amended by section 9411(a) of this Act, is amended—
(1) by striking the period at the end of sub-
paragraph (C)(ii) and inserting a comma; and
(2) by adding after and below subparagraph
(C), flush with the left margin of the subsection, the
following:
‘‘increased by the incentive adjustment factor (if any) de-
termined by the Secretary pursuant to section 458.’’.
(c) CONFORMING AMENDMENTS.—Section 454(22)
(42 U.S.C. 654(22)) is amended—
(1) by striking ‘‘incentive payments’’ the first
place it appears and inserting ‘‘incentive adjust-
ments’’; and
(2) by striking ‘‘any such incentive payments
made to the State for such period’’ and inserting
‘‘any increases in Federal payments to the State re-
sulting from such incentive adjustments’’.
(d) CALCULATION OF IV–D PATERNITY ESTABLISH-
MENT PERCENTAGE.—(1) Section 452(g)(1) (42 U.S.C.
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652(g)(1)) is amended in the matter preceding subpara-
graph (A) by inserting ‘‘its overall performance in child
support enforcement is satisfactory (as defined in section
458(b) and regulations of the Secretary), and’’ after
‘‘1994,’’.
(2) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is
amended—
(A) in subparagraph (A), in the matter preced-
ing clause (i)—
(i) by striking ‘‘paternity establishment
percentage’’ and inserting ‘‘IV–D paternity es-
tablishment percentage’’; and
(ii) by striking ‘‘(or all States, as the case
may be)’’;
(B) in subparagraph (A)(i), by striking ‘‘during
the fiscal year’’;
(C) in subparagraph (A)(ii)(I), by striking ‘‘as
of the end of the fiscal year’’ and inserting ‘‘in the
fiscal year or, at the option of the State, as of the
end of such year’’;
(D) in subparagraph (A)(ii)(II), by striking ‘‘or
(E) as of the end of the fiscal year’’ and inserting
‘‘in the fiscal year or, at the option of the State, as
of the end of such year’’;
(E) in subparagraph (A)(iii)—
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(i) by striking ‘‘during the fiscal year’’;
and
(ii) by striking ‘‘and’’ at the end; and
(F) in the matter following subparagraph (A)—
(i) by striking ‘‘who were born out of wed-
lock during the immediately preceding fiscal
year’’ and inserting ‘‘born out of wedlock’’;
(ii) by striking ‘‘such preceding fiscal
year’’ both places it appears and inserting ‘‘the
preceding fiscal year’’; and
(iii) by striking ‘‘or (E)’’ the second place
it appears.
(3) Section 452(g)(3) (42 U.S.C. 652(g)(3)) is
amended—
(A) by striking subparagraph (A) and redesig-
nating subparagraphs (B) and (C) as subparagraphs
(A) and (B), respectively;
(B) in subparagraph (A), as redesignated, by
striking ‘‘the percentage of children born out-of-wed-
lock in the State’’ and inserting ‘‘the percentage of
children in the State who are born out of wedlock
or for whom support has not been established’’; and
(C) in subparagraph (B), as redesignated—
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(i) by inserting ‘‘and overall performance
in child support enforcement’’ after ‘‘paternity
establishment percentages’’; and
(ii) by inserting ‘‘and securing support’’
before the period.
(e) REDUCTION OF PAYMENTS UNDER PART D OF
TITLE IV.—
(1) NEW
REQUIREMENTS.—Section 455 (42
U.S.C. 655) is amended by inserting after sub-
section (b) the following:
‘‘(c)(1) If the Secretary finds, with respect to a State
program under this part in a fiscal year beginning on or
after October 1, 1997—
‘‘(A)(i) on the basis of data submitted by a
State pursuant to section 454(15)(B), that the State
program in such fiscal year failed to achieve the IV–
D paternity establishment percentage (as defined in
section 452(g)(2)(A)) or the appropriate level of
overall performance in child support enforcement (as
defined in section 458(b)(2)), or to meet other per-
formance measures that may be established by the
Secretary, or
‘‘(ii) on the basis of an audit or audits of such
State 
data 
conducted 
pursuant 
to 
section
452(a)(4)(C), that the State data submitted pursu-
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‘‘(C) not less than 12 nor more than 15 per-
cent, if the finding is the third or a subsequent con-
secutive such finding.
‘‘(3) For purposes of this subsection, section 405(d),
and section 452(a)(4), a State which is determined as a
result of an audit to have submitted incomplete or unreli-
able data pursuant to section 454(15)(B), shall be deter-
mined to have submitted adequate data if the Secretary
determines that the extent of the incompleteness or
unreliability of the data is of a technical nature which does
not adversely affect the determination of the level of the
State’s performance.’’.
(2) CONFORMING AMENDMENTS.—
(A) 
Section 
452(a)(4) 
(42 
U.S.C.
652(a)(4)) is amended by striking ‘‘403(h)’’
each place such term appears and inserting
‘‘455(c)’’.
(B) Subsections (d)(3)(A), (g)(1), and
(g)(3)(A) of section 452 (42 U.S.C. 652) are
each amended by striking ‘‘403(h)’’ and insert-
ing ‘‘455(c)’’.
(f) EFFECTIVE DATES.—
(1) 
INCENTIVE
ADJUSTMENTS.—(A) 
The
amendments made by subsections (a), (b), and (c)
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‘‘(A) a process for annual reviews of and
reports to the Secretary on the State program
under this part, which shall include such infor-
mation as may be necessary to measure State
compliance with Federal requirements for expe-
dited procedures and timely case processing,
using such standards and procedures as are re-
quired by the Secretary, under which the State
agency will determine the extent to which such
program is in conformity with applicable re-
quirements with respect to the operation of
State programs under this part (including the
status of complaints filed under the procedure
required under paragraph (12)(B)); and
‘‘(B) a process of extracting from the
State automated data processing system and
transmitting to the Secretary data and calcula-
tions concerning the levels of accomplishment
(and rates of improvement) with respect to ap-
plicable performance indicators (including IV–D
paternity establishment percentages and overall
performance in child support enforcement) to
the extent necessary for purposes of sections
452(g) and 458.’’.
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(b) FEDERAL ACTIVITIES.—Section 452(a)(4) (42
U.S.C. 652(a)(4)) is amended to read as follows:
‘‘(4)(A) review data and calculations transmit-
ted 
by 
State 
agencies 
pursuant 
to 
section
454(15)(B) on State program accomplishments with
respect to performance indicators for purposes of
section 452(g) and 458, and determine the amount
(if any) of penalty reductions pursuant to section
455(c) to be applied to the State;
‘‘(B) review annual reports by State agencies
pursuant to section 454(15)(A) on State program
conformity with Federal requirements; evaluate any
elements of a State program in which significant de-
ficiencies are indicated by such report on the status
of complaints under the State procedure under sec-
tion 454(12)(B); and, as appropriate, provide to the
State agency comments, recommendations for addi-
tional or alternative corrective actions, and technical
assistance; and
‘‘(C) conduct audits, in accordance with the
government auditing standards of the United States
Comptroller General—
‘‘(i) at least once every 3 years (or more
frequently, in the case of a State which fails to
meet requirements of this part, or of regula-
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tions implementing such requirements, concern-
ing performance standards and reliability of
program data) to assess the completeness, reli-
ability, and security of the data, and the accu-
racy of the reporting systems, used for the cal-
culations of performance indicators specified in
subsection (g) and section 458;
‘‘(ii) of the adequacy of financial manage-
ment of the State program, including assess-
ments of—
‘‘(I) whether Federal and other funds
made available to carry out the State pro-
gram under this part are being appro-
priately expended, and are properly and
fully accounted for; and
‘‘(II) whether collections and disburse-
ments of support payments and program
income are carried out correctly and are
properly and fully accounted for; and
‘‘(iii) for such other purposes as the Sec-
retary may find necessary;’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall be effective with respect to calendar
quarters beginning on or after the date one year after en-
actment of this section.
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SEC. 9414. REQUIRED REPORTING PROCEDURES.
(a) ESTABLISHMENT.—Section 452(a)(5) (42 U.S.C.
652(a)(5)) is amended by inserting ‘‘, and establish proce-
dures to be followed by States for collecting and reporting
information required to be provided under this part, and
establish uniform definitions (including those necessary to
enable the measurement of State compliance with the re-
quirements of this part relating to expedited processes and
timely case processing) to be applied in following such pro-
cedures’’ before the semicolon.
(b) STATE PLAN REQUIREMENT.—Section 454 (42
U.S.C. 654), as amended by section 9404(a) of this Act,
is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(24);
(2) by striking the period at the end of para-
graph (25) and inserting ‘‘; and’’; and
(3) by adding after paragraph (25) the follow-
ing:
‘‘(26) provide that the State shall use the defi-
nitions established under section 452(a)(5) in col-
lecting and reporting information as required under
this part.’’.
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SEC. 9415. AUTOMATED DATA PROCESSING REQUIRE-
MENTS.
(a) REVISED REQUIREMENTS.—(1) Section 454(16)
(42 U.S.C. 654(16)) is amended—
(A) by striking ‘‘, at the option of the State,’’;
(B) by inserting ‘‘and operation by the State
agency’’ after ‘‘for the establishment’’;
(C) by inserting ‘‘meeting the requirements of
section 454A’’ after ‘‘information retrieval system’’;
(D) by striking ‘‘in the State and localities
thereof, so as (A)’’ and inserting ‘‘so as’’;
(E) by striking ‘‘(i)’’; and
(F) by striking ‘‘(including’’ and all that follows
and inserting a semicolon.
(2) Part D of title IV (42 U.S.C. 651–669) is amend-
ed by inserting after section 454 the following new section:
‘‘AUTOMATED DATA PROCESSING
‘‘SEC. 454A. (a) IN GENERAL.—In order to meet the
requirements of this section, for purposes of the require-
ment of section 454(16), a State agency shall have in op-
eration a single statewide automated data processing and
information retrieval system which has the capability to
perform the tasks specified in this section, and performs
such tasks with the frequency and in the manner specified
in this part or in regulations or guidelines of the Sec-
retary.
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‘‘(b) PROGRAM MANAGEMENT.—The automated sys-
tem required under this section shall perform such func-
tions as the Secretary may specify relating to management
of the program under this part, including—
‘‘(1) controlling and accounting for use of Fed-
eral, State, and local funds to carry out such pro-
gram; and
‘‘(2) maintaining the data necessary to meet
Federal reporting requirements on a timely basis.
‘‘(c) CALCULATION
OF
PERFORMANCE
INDICA-
TORS.—In order to enable the Secretary to determine the
incentive and penalty adjustments required by sections
452(g) and 458, the State agency shall—
‘‘(1) use the automated system—
‘‘(A) to maintain the requisite data on
State performance with respect to paternity es-
tablishment and child support enforcement in
the State; and
‘‘(B) to calculate the IV–D paternity es-
tablishment percentage and overall performance
in child support enforcement for the State for
each fiscal year; and
‘‘(2) have in place systems controls to ensure
the completeness, and reliability of, and ready access
to, the data described in paragraph (1)(A), and the
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accuracy of the calculations described in paragraph
(1)(B).
‘‘(d) INFORMATION INTEGRITY AND SECURITY.—The
State agency shall have in effect safeguards on the integ-
rity, accuracy, and completeness of, access to, and use of
data in the automated system required under this section,
which shall include the following (in addition to such other
safeguards as the Secretary specifies in regulations):
‘‘(1) POLICIES RESTRICTING ACCESS.—Written
policies concerning access to data by State agency
personnel, and sharing of data with other persons,
which—
‘‘(A) permit access to and use of data only
to the extent necessary to carry out program re-
sponsibilities;
‘‘(B) specify the data which may be used
for particular program purposes, and the per-
sonnel permitted access to such data; and
‘‘(C) ensure that data obtained or disclosed
for a limited program purpose is not used or
redisclosed for another, impermissible purpose.
‘‘(2) SYSTEMS
CONTROLS.—Systems controls
(such as passwords or blocking of fields) to ensure
strict adherence to the policies specified under para-
graph (1).
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‘‘(3) MONITORING OF ACCESS.—Routine mon-
itoring of access to and use of the automated sys-
tem, through methods such as audit trails and feed-
back mechanisms, to guard against and promptly
identify unauthorized access or use.
‘‘(4) TRAINING AND INFORMATION.—The State
agency shall have in effect procedures to ensure that
all personnel (including State and local agency staff
and contractors) who may have access to or be re-
quired to use sensitive or confidential program data
are fully informed of applicable requirements and
penalties, and are adequately trained in security pro-
cedures.
‘‘(5) PENALTIES.—The State agency shall have
in effect administrative penalties (up to and includ-
ing dismissal from employment) for unauthorized ac-
cess to, or disclosure or use of, confidential data.’’.
(3) REGULATIONS.—Section 452 (42 U.S.C. 652) is
amended by adding at the end the following:
‘‘(j) The Secretary shall prescribe final regulations
for implementation of the requirements of section 454A
not later than 2 years after the date of the enactment of
this subsection.’’.
(4) 
IMPLEMENTATION
TIMETABLE.—Section
454(24) (42 U.S.C. 654(24)), as amended by sections
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9404(a)(2) and 9414(b)(1) of this Act, is amended to read
as follows:
‘‘(24) provide that the State will have in effect
an automated data processing and information re-
trieval system—
‘‘(A) by October 1, 1995, meeting all re-
quirements of this part which were enacted on
or before the date of enactment of the Family
Support Act of 1988; and
‘‘(B) by October 1, 1999, meeting all re-
quirements of this part enacted on or before the
date of enactment of the Omnibus Budget Rec-
onciliation Act of 1995 (but this provision shall
not be construed to alter earlier deadlines speci-
fied for elements of such system), except that
such deadline shall be extended by 1 day for
each day (if any) by which the Secretary fails
to meet the deadline imposed by section 452(j)
of this Act;’’.
(b) SPECIAL FEDERAL MATCHING RATE FOR DE-
VELOPMENT COSTS OF AUTOMATED SYSTEMS.—Section
455(a) (42 U.S.C. 655(a)) is amended—
(1) in paragraph (1)(B)—
(A) by striking ‘‘90 percent’’ and inserting
‘‘the percent specified in paragraph (3)’’;
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(B) by striking ‘‘so much of’’; and
(C) by striking ‘‘which the Secretary’’ and
all that follows and inserting ‘‘, and’’; and
(2) by adding at the end the following new
paragraph:
‘‘(3)(A) The Secretary shall pay to each State, for
each quarter in fiscal year 1996, 90 percent of so much
of State expenditures described in subparagraph (1)(B) as
the Secretary finds are for a system meeting the require-
ments specified in section 454(16), or meeting such re-
quirements without regard to clause (D) thereof.
‘‘(B)(i) The Secretary shall pay to each State, for
each quarter in fiscal years 1997 through 2001, the per-
centage specified in clause (ii) of so much of State expend-
itures described in subparagraph (1)(B) as the Secretary
finds are for a system meeting the requirements specified
in sections 454(16) and 454A, subject to clause (iii).
‘‘(ii) The percentage specified in this clause, for pur-
poses of clause (i), is the higher of—
‘‘(I) 80 percent, or
‘‘(II) the percentage otherwise applicable to
Federal payments to the State under subparagraph
(A) (as adjusted pursuant to section 458).’’.
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(c) CONFORMING AMENDMENT.—Section 123(c) of
the Family Support Act of 1988 (102 Stat. 2352; Public
Law 100–485) is repealed.
(d) ADDITIONAL PROVISIONS.—For additional provi-
sions of section 454A, as added by subsection (a) of this
section, see the amendments made by sections 9421,
9422(c), and 9433(d) of this Act.
SEC. 9416. DIRECTOR OF CSE PROGRAM; STAFFING STUDY.
(a) REPORTING TO SECRETARY.—Section 452(a) (42
U.S.C. 652(a)) is amended in the matter preceding para-
graph (1) by striking ‘‘directly’’.
(b) STAFFING STUDIES.—
(1) SCOPE.—The Secretary of Health and
Human Services shall, directly or by contract, con-
duct studies of the staffing of each State child sup-
port enforcement program under part D of title IV
of the Social Security Act. Such studies shall include
a review of the staffing needs created by require-
ments for automated data processing, maintenance
of a central case registry and centralized collections
of child support, and of changes in these needs re-
sulting from changes in such requirements. Such
studies shall examine and report on effective staffing
practices used by the States and on recommended
staffing procedures.
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(2) FREQUENCY OF STUDIES.—The Secretary
shall complete the first staffing study required under
paragraph (1) by October 1, 1997, and may conduct
additional studies subsequently at appropriate inter-
vals.
(3) REPORT
TO
THE
CONGRESS.—The Sec-
retary shall submit a report to the Congress stating
the findings and conclusions of each study conducted
under this subsection.
SEC. 9417. FUNDING FOR SECRETARIAL ASSISTANCE TO
STATE PROGRAMS.
Section 452 (42 U.S.C. 652), as amended by section
9415(a)(3) of this Act, is amended by adding at the end
the following new subsection:
‘‘(k) FUNDING FOR FEDERAL ACTIVITIES ASSISTING
STATE PROGRAMS.—(1) There shall be available to the
Secretary, from amounts appropriated for fiscal year 1996
and each succeeding fiscal year for payments to States
under this part, the amount specified in paragraph (2) for
the costs to the Secretary for—
‘‘(A) information dissemination and technical
assistance to States, training of State and Federal
staff, staffing studies, and related activities needed
to improve programs (including technical assistance
concerning State automated systems);
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‘‘(B) research, demonstration, and special
projects of regional or national significance relating
to the operation of State programs under this part;
and
‘‘(C) operation of the Federal Parent Locator
Service under section 453, to the extent such costs
are not recovered through user fees.
‘‘(2) The amount specified in this paragraph for a
fiscal year is the amount equal to a percentage of the re-
duction in Federal payments to States under part A on
account of child support (including arrearages) collected
in the preceding fiscal year on behalf of children receiving
assistance under State plans approved under part A in
such preceding fiscal year (as determined on the basis of
the most recent reliable data available to the Secretary
as of the end of the third calendar quarter following the
end of such preceding fiscal year), equal to—
‘‘(A) 1 percent, for the activities specified in
subparagraphs (A) and (B) of paragraph (1); and
‘‘(B) 2 percent, for the activities specified in
subparagraph (C) of paragraph (1).’’.
SEC. 9418. REPORTS AND DATA COLLECTION BY THE SEC-
RETARY.
(a) ANNUAL REPORT TO CONGRESS.—(1) Section
452(a)(10)(A) (42 U.S.C. 652(a)(10)(A)) is amended—
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(A) by striking ‘‘this part;’’ and inserting ‘‘this
part, including—’’; and
(B) by adding at the end the following indented
clauses:
‘‘(i) the total amount of child support
payments collected as a result of services
furnished during such fiscal year to indi-
viduals receiving services under this part;
‘‘(ii) the cost to the States and to the
Federal Government of furnishing such
services to those individuals; and
‘‘(iii) the number of cases involving
families—
‘‘(I) who became ineligible for as-
sistance under a State plan approved
under part A during a month in such
fiscal year; and
‘‘(II) with respect to whom a
child support payment was received in
the same month;’’.
(2) Section 452(a)(10)(C) (42 U.S.C. 652(a)(10)(C))
is amended—
(A) in the matter preceding clause (i)—
(i) by striking ‘‘with the data required
under each clause being separately stated for
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cases’’ and inserting ‘‘separately stated for (1)
cases’’;
(ii) by striking ‘‘cases where the child was
formerly receiving’’ and inserting ‘‘or formerly
received’’;
(iii) 
by 
inserting 
‘‘or 
1912’’ 
after
‘‘471(a)(17)’’; and
(iv) by inserting ‘‘(2)’’ before ‘‘all other’’;
(B) in each of clauses (i) and (ii), by striking
‘‘, and the total amount of such obligations’’;
(C) in clause (iii), by striking ‘‘described in’’
and all that follows and inserting ‘‘in which support
was collected during the fiscal year;’’;
(D) by striking clause (iv); and
(E) by redesignating clause (v) as clause (vii),
and inserting after clause (iii) the following new
clauses:
‘‘(iv) the total amount of support col-
lected during such fiscal year and distrib-
uted as current support;
‘‘(v) the total amount of support col-
lected during such fiscal year and distrib-
uted as arrearages;
‘‘(vi) the total amount of support due
and unpaid for all fiscal years; and’’.
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(3) Section 452(a)(10)(G) (42 U.S.C. 652(a)(10)(G))
is amended by striking ‘‘on the use of Federal courts
and’’.
(4) Section 452(a)(10) (42 U.S.C. 652(a)(10)) is
amended by striking all that follows subparagraph (I).
(b) DATA COLLECTION AND REPORTING.—Section
469 (42 U.S.C. 669) is amended—
(1) by striking subsections (a) and (b) and in-
serting the following:
‘‘(a) The Secretary shall collect and maintain, on a
fiscal year basis, up-to-date statistics, by State, with re-
spect to services to establish paternity and services to es-
tablish child support obligations, the data specified in sub-
section (b), separately stated, in the case of each such
service, with respect to—
‘‘(1) families (or dependent children) receiving
assistance under State plans approved under part A
(or E); and
‘‘(2) families not receiving such assistance.
‘‘(b) The data referred to in subsection (a) are—
‘‘(1) the number of cases in the caseload of the
State agency administering the plan under this part
in which such service is needed; and
‘‘(2) the number of such cases in which the
service has been provided.’’; and
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(2) in subsection (c), by striking ‘‘(a)(2)’’ and
inserting ‘‘(b)(2)’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall be effective with respect to fiscal year
1996 and succeeding fiscal years.
CHAPTER 3—LOCATE AND CASE
TRACKING
SEC. 9421. CENTRAL STATE AND CASE REGISTRY.
Section 454A, as added by section 9415(a)(2) of this
Act, is amended by adding at the end the following:
‘‘(e) CENTRAL
CASE
REGISTRY.—(1) IN
GEN-
ERAL.—The automated system required under this section
shall perform the functions, in accordance with the provi-
sions of this subsection, of a single central registry con-
taining records with respect to each case in which services
are being provided by the State agency (including, on and
after October 1, 1998, each order specified in section
466(a)(12)), using such standardized data elements (such
as names, social security numbers or other uniform identi-
fication numbers, dates of birth, and case identification
numbers), and containing such other information (such as
information on case status) as the Secretary may require.
‘‘(2) PAYMENT RECORDS.—Each case record in the
central registry shall include a record of—
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‘‘(A) the amount of monthly (or other periodic)
support owed under the support order, and other
amounts due or overdue (including arrears, interest
or late payment penalties, and fees);
‘‘(B) the date on which or circumstances under
which the support obligation will terminate under
such order;
‘‘(C) all child support and related amounts col-
lected (including such amounts as fees, late payment
penalties, and interest on arrearages);
‘‘(D) the distribution of such amounts collected;
and
‘‘(E) the birth date of the child for whom the
child support order is entered.
‘‘(3) UPDATING AND MONITORING.—The State agen-
cy shall promptly establish and maintain, and regularly
monitor, case records in the registry required by this sub-
section, on the basis of—
‘‘(A) information on administrative actions and
administrative and judicial proceedings and orders
relating to paternity and support;
‘‘(B) information obtained from matches with
Federal, State, or local data sources;
‘‘(C) information on support collections and dis-
tributions; and
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‘‘(D) any other relevant information.
‘‘(f) DATA MATCHES AND OTHER DISCLOSURES OF
INFORMATION.—The automated system required under
this section shall have the capacity, and be used by the
State agency, to extract data at such times, and in such
standardized format or formats, as may be required by
the Secretary, and to share and match data with, and re-
ceive data from, other data bases and data matching serv-
ices, in order to obtain (or provide) information necessary
to enable the State agency (or Secretary or other State
or Federal agencies) to carry out responsibilities under
this part. Data matching activities of the State agency
shall include at least the following:
‘‘(1) DATA
BANK
OF
CHILD
SUPPORT
OR-
DERS.—Furnish to the Data Bank of Child Support
Orders established under section 453(h) (and update
as necessary, with information including notice of
expiration of orders) minimal information (to be
specified by the Secretary) on each child support
case in the central case registry.
‘‘(2) FEDERAL
PARENT
LOCATOR
SERVICE.—
Exchange data with the Federal Parent Locator
Service for the purposes specified in section 453.
‘‘(3) TEMPORARY
EMPLOYMENT
ASSISTANCE
PROGRAM
AND
MEDICAID
AGENCIES.—Exchange
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data with State agencies (of the State and of other
States) administering the programs under part A
and title XIX, as necessary for the performance of
State agency responsibilities under this part and
under such programs.
‘‘(4) 
INTRA- 
AND
INTERSTATE
DATA
MATCHES.—Exchange data with other agencies of
the State, agencies of other States, and interstate
information networks, as necessary and appropriate
to carry out (or assist other States to carry out) the
purposes of this part.’’.
SEC. 9422. CENTRALIZED COLLECTION AND DISBURSE-
MENT OF SUPPORT PAYMENTS.
(a) STATE PLAN REQUIREMENT.—Section 454 (42
U.S.C. 654), as amended by sections 9404(a) and 9414(b)
of this Act, is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(25);
(2) by striking the period at the end of para-
graph (26) and inserting ‘‘; and’’; and
(3) by adding after paragraph (26) the follow-
ing new paragraph:
‘‘(27) provide that the State agency, on and
after October 1, 1998—
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‘‘(A) will operate a centralized, automated unit
for the collection and disbursement of child support
under orders being enforced under this part, in ac-
cordance with section 454B; and
‘‘(B) will have sufficient State staff (consisting
of State employees), and (at State option) contrac-
tors reporting directly to the State agency to mon-
itor and enforce support collections through such
centralized unit, including carrying out the auto-
mated data processing responsibilities specified in
section 454A(g) and to impose, as appropriate in
particular cases, the administrative enforcement
remedies specified in section 466(c)(1).’’.
(b) ESTABLISHMENT OF CENTRALIZED COLLECTION
UNIT.—Part D of title IV (42 U.S.C. 651–669) is amend-
ed by adding after section 454A the following new section:
‘‘CENTRALIZED COLLECTION AND DISBURSEMENT OF
SUPPORT PAYMENTS
‘‘SEC. 454B. (a) IN GENERAL.—In order to meet the
requirement of section 454(27), the State agency must op-
erate a single centralized, automated unit for the collection
and disbursement of support payments, coordinated with
the automated data system required under section 454A,
in accordance with the provisions of this section, which
shall be—
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‘‘(1) operated directly by the State agency (or
by two or more State agencies under a regional co-
operative agreement), or by a single contractor re-
sponsible directly to the State agency; and
‘‘(2) used for the collection and disbursement
(including interstate collection and disbursement) of
payments under support orders in all cases being en-
forced by the State pursuant to section 454(4).
‘‘(b) REQUIRED PROCEDURES.—The centralized col-
lections unit shall use automated procedures, electronic
processes, and computer-driven technology to the maxi-
mum extent feasible, efficient, and economical, for the col-
lection and disbursement of support payments, including
procedures—
‘‘(1) for receipt of payments from parents, em-
ployers, and other States, and for disbursements to
custodial parents and other obligees, the State agen-
cy, and the State agencies of other States;
‘‘(2) for accurate identification of payments;
‘‘(3) to ensure prompt disbursement of the cus-
todial parent’s share of any payment; and
‘‘(4) to furnish to either parent, upon request,
timely information on the current status of support
payments.’’.
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(c) USE OF AUTOMATED SYSTEM.—Section 454A, as
added by section 9415(a)(2) of this Act and as amended
by section 9421 of this Act, is amended by adding at the
end the following new subsection:
‘‘(g) CENTRALIZED COLLECTION AND DISTRIBUTION
OF SUPPORT PAYMENTS.—The automated system re-
quired under this section shall be used, to the maximum
extent feasible, to assist and facilitate collections and dis-
bursement of support payments through the centralized
collections unit operated pursuant to section 454B,
through the performance of functions including at a mini-
mum—
‘‘(1) generation of orders and notices to em-
ployers (and other debtors) for the withholding of
wages (and other income)—
‘‘(A) within two working days after receipt
(from the directory of New Hires established
under section 453(i) or any other source) of no-
tice of and the income source subject to such
withholding; and
‘‘(B) using uniform formats directed by
the Secretary;
‘‘(2) ongoing monitoring to promptly identify
failures to make timely payment; and
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‘‘(3) automatic use of enforcement mechanisms
(including mechanisms authorized pursuant to sec-
tion 466(c)) where payments are not timely made.’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall become effective on October 1, 1998.
SEC. 9423. AMENDMENTS CONCERNING INCOME WITH-
HOLDING.
(a) MANDATORY INCOME WITHHOLDING.—(1) Sec-
tion 466(a)(1) (42 U.S.C. 666(a)(1)) is amended to read
as follows:
‘‘(1) INCOME WITHHOLDING.—(A) UNDER OR-
DERS ENFORCED UNDER THE STATE PLAN.—Proce-
dures described in subsection (b) for the withholding
from income of amounts payable as support in cases
subject to enforcement under the State plan.
‘‘(B) UNDER
CERTAIN
ORDERS
PREDATING
CHANGE
IN
REQUIREMENT.—Procedures 
under
which all child support orders issued (or modified)
before October 1, 1996, and which are not otherwise
subject to withholding under subsection (b), shall be-
come subject to withholding from wages as provided
in subsection (b) if arrearages occur, without the
need for a judicial or administrative hearing.’’.
(2) Section 466(a)(8) (42 U.S.C. 666(a)(8)) is re-
pealed.
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(3) Section 466(b) (42 U.S.C. 666(b)) is amended—
(A) in the matter preceding paragraph (1), by
striking ‘‘subsection (a)(1)’’ and inserting ‘‘sub-
section (a)(1)(A)’’;
(B) in paragraph (5), by striking all that fol-
lows ‘‘administered by’’ and inserting ‘‘the State
through the centralized collections unit established
pursuant to section 454B, in accordance with the re-
quirements of such section 454B.’’;
(C) in paragraph (6)(A)(i)—
(i) by inserting ‘‘, in accordance with time-
tables established by the Secretary,’’ after
‘‘must be required’’; and
(ii) by striking ‘‘to the appropriate agency’’
and all that follows and inserting ‘‘to the State
centralized collections unit within 5 working
days after the date such amount would (but for
this subsection) have been paid or credited to
the employee, for distribution in accordance
with this part.’’;
(D) in paragraph (6)(A)(ii), by inserting ‘‘be in
a standard format prescribed by the Secretary, and’’
after ‘‘shall’’; and
(E) in paragraph (6)(D)—
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(i) by striking ‘‘employer who discharges’’
and inserting ‘‘employer who—(A) discharges’’;
(ii) by relocating subparagraph (A), as des-
ignated, as an indented subparagraph after and
below the introductory matter;
(iii) by striking the period at the end; and
(iv) by adding after and below subpara-
graph (A) the following new subparagraph:
‘‘(B) fails to withhold support from wages,
or to pay such amounts to the State centralized
collections unit in accordance with this sub-
section.’’.
(b) CONFORMING AMENDMENT.—Section 466(c) (42
U.S.C. 666(c)) is repealed.
(c) DEFINITION
OF TERMS.—The Secretary shall
promulgate regulations providing definitions, for purposes
of part D of title IV of the Social Security Act, for the
term ‘‘income’’ and for such other terms relating to in-
come withholding under section 466(b) of such Act as the
Secretary may find it necessary or advisable to define.
SEC. 9424. LOCATOR INFORMATION FROM INTERSTATE
NETWORKS.
Section 466(a) (42 U.S.C. 666(a)), as amended by
section 9423(a)(2) of this Act, is amended by inserting
after paragraph (7) the following:
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‘‘(8) LOCATOR
INFORMATION
FROM
INTER-
STATE
NETWORKS.—Procedures ensuring that the
State will neither provide funding for, nor use for
any purpose (including any purpose unrelated to the
purposes of this part), any automated interstate net-
work or system used to locate individuals—
‘‘(A) for purposes relating to the use of
motor vehicles; or
‘‘(B) providing information for law en-
forcement purposes (where child support en-
forcement agencies are otherwise allowed access
by State and Federal law),
unless all Federal and State agencies administering
programs under this part (including the entities es-
tablished under section 453) have access to informa-
tion in such system or network to the same extent
as any other user of such system or network.’’.
SEC. 9425. EXPANDED FEDERAL PARENT LOCATOR SERV-
ICE.
(a) EXPANDED AUTHORITY TO LOCATE INDIVIDUALS
AND ASSETS.—Section 453 (42 U.S.C. 653) is amended—
(1) in subsection (a), by striking all that follows
‘‘subsection (c))’’ and inserting the following:
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‘‘, for the purpose of establishing parentage, establishing,
setting the amount of, modifying, or enforcing child sup-
port obligations—
‘‘(1) information on, or facilitating the discov-
ery of, the location of any individual—
‘‘(A) who is under an obligation to pay
child support;
‘‘(B) against whom such an obligation is
sought; or
‘‘(C) to whom such an obligation is owed,
including such individual’s social security num-
ber (or numbers), most recent residential ad-
dress, and the name, address, and employer
identification number of such individual’s em-
ployer; and
‘‘(2) information on the individual’s wages (or
other income) from, and benefits of, employment (in-
cluding rights to or enrollment in group health care
coverage); and
‘‘(3) information on the type, status, location,
and amount of any assets of, or debts owed by or
to, any such individual.’’; and
(2) in subsection (b)—
(A) in the matter preceding paragraph (1),
by striking ‘‘social security’’ and all that follows
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through ‘‘absent parent’’ and inserting ‘‘infor-
mation specified in subsection (a)’’; and
(B) in paragraph (2), by inserting before
the period ‘‘, or from any consumer reporting
agency (as defined in section 603(f) of the Fair
Credit Reporting Act (15 U.S.C. 1681a(f))’’;
(3) in subsection (e)(1), by inserting before the
period ‘‘, or by consumer reporting agencies’’.
(b) REIMBURSEMENT FOR DATA FROM FEDERAL
AGENCIES.—Section 453(e)(2) (42 U.S.C. 653(e)(2)) is
amended in the fourth sentence by inserting before the
period ‘‘in an amount which the Secretary determines to
be reasonable payment for the data exchange (which
amount shall not include payment for the costs of obtain-
ing, compiling, or maintaining the data)’’.
(c) ACCESS TO CONSUMER REPORTS UNDER FAIR
CREDIT REPORTING ACT.—(1) Section 608 of the Fair
Credit Reporting Act (15 U.S.C. 1681f) is amended—
(A) by striking ‘‘, limited to’’ and inserting ‘‘to
a 
governmental 
agency 
(including 
the 
entire
consumer report, in the case of a Federal, State, or
local agency administering a program under part D
of title IV of the Social Security Act, and limited
to’’; and
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(B) by striking ‘‘employment, to a govern-
mental agency’’ and inserting ‘‘employment, in the
case of any other governmental agency)’’.
(2) REIMBURSEMENT
FOR
REPORTS
BY
STATE
AGENCIES
AND CREDIT BUREAUS.—Section 453 (42
U.S.C. 653) is amended by adding at the end the following
new subsection:
‘‘(g) The Secretary is authorized to reimburse costs
to State agencies and consumer credit reporting agencies
the costs incurred by such entities in furnishing informa-
tion requested by the Secretary pursuant to this section
in an amount which the Secretary determines to be rea-
sonable payment for the data exchange (which amount
shall not include payment for the costs of obtaining, com-
piling, or maintaining the data).’’.
(d) DISCLOSURE OF TAX RETURN INFORMATION.—
(1) Section 6103(1)(6)(A)(ii) of the Internal Revenue
Code of 1986 is amended by striking ‘‘, but only if’’ and
all that follows and inserting a period.
(2) Section 6103(1)(8)(A) of the Internal Revenue
Code of 1986 is amended by inserting ‘‘Federal,’’ before
‘‘State or local’’.
(e) TECHNICAL AMENDMENTS.—
(1) Sections 452(a)(9), 453(a), 453(b), 463(a),
and 463(e) (42 U.S.C. 652(a)(9), 653(a), 653(b),
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663(a), and 663(e)) are each amended by inserting
‘‘Federal’’ before ‘‘Parent’’ each place it appears.
(2) Section 453 (42 U.S.C. 653) is amended in
the heading by adding ‘‘FEDERAL’’ before ‘‘PAR-
ENT’’.
(f) NEW COMPONENTS.—Section 453 (42 U.S.C.
653), as amended by subsection (c)(2) of this section, is
amended by adding at the end the following:
‘‘(h) DATA BANK OF CHILD SUPPORT ORDERS.—
‘‘(1) IN GENERAL.—Not later than October 1,
1998, In order to assist States in administering
their State plans under this part and parts A, F,
and G, and for the other purposes specified in this
section, the Secretary shall establish and maintain in
the Federal Parent Locator Service an automated
registry to be known as the Data Bank of Child
Support Orders, which shall contain abstracts of
child support orders and other information described
in paragraph (2) on each case in each State central
case registry maintained pursuant to section
454A(e), as furnished (and regularly updated), pur-
suant to section 454A(f), by State agencies admin-
istering programs under this part.
‘‘(2) CASE INFORMATION.—The information re-
ferred to in paragraph (1), as specified by the Sec-