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efit payable to an eligible individual for a
month is—
(i) 1⁄12 of the sum of—
(I) $3,000 for the 1st eligible
child of the individual; and
(II) $1,000 for each additional
eligible child of the individual; multi-
plied by
(ii) the sum of—
(I) 1.00; plus
(II) the locality adjustment in ef-
fect for the month for the locality of
the United States in which the indi-
vidual resides.
(C) LOCALITY ADJUSTMENT.—
(i) IN
GENERAL.—For purposes of
subparagraph (B)(ii)(II), the locality ad-
justment in effect for a month for a local-
ity is the percentage (if any) by which the
cost of living in the locality for the cal-
endar year immediately preceding the cal-
endar year in which the month occurs ex-
ceeds the cost of living in the locality with
the least such cost for such immediately
preceding calendar year.
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(ii) METHODOLOGY.—The Secretary
shall determine the cost of living in a local-
ity for a calendar year for purposes of
clause (i) by using an average of retail
market prices for the locality during the
calendar year. The retail market prices
shall be selected and used under the same
methodology used by the Bureau of Labor
Statistics in developing the Consumer
Price Index for all Urban Consumers.
(D) INFLATION
PERCENTAGE.—For pur-
poses of subparagraph (A):
(i) IN GENERAL.—The inflation per-
centage in effect for a month for a locality
shall be the greater of—
(I) the percentage (if any) by
which the cost of living in the locality
for the calendar year immediately pre-
ceding the calendar year in which the
month occurs exceeds the cost of liv-
ing in the locality for the calendar
year 2nd preceding the calendar year
in which the month occurs; or
(II) the inflation percentage in
effect for the locality for the calendar
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year immediately preceding the cal-
endar year in which the month occurs.
(ii) 1995.—The inflation percentage
in effect for a locality for calendar year
1995 shall be zero.
(3) TIMING
OF
PAYMENTS.—The Secretary
shall make payments under this subsection on the
1st day of each calendar month.
(b) NOTICE TO BE INCLUDED WITH PAYMENT.—
Upon making any payment under this section to an eligi-
ble individual, the Secretary shall transmit to the individ-
ual and the State agency referred to in section 402(a)(3)
of the Social Security Act of the State in which the indi-
vidual resides a notice that specifies—
(1) the name of the individual;
(2) the amount of the payment;
(3) the method used to determine the amount
of the payment;
(4) the date the payment is made; and
(5) the portion of the payment that is to be in-
cluded in the income of the eligible individual for
purposes of the State program of aid to families
with dependent children under part A of title IV of
the Social Security Act.
(c) NOTICE OF ELIGIBILITY FOR BENEFITS.—
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(1) IN GENERAL.—The Secretary shall notify
each individual who has responsibility for meeting
the daily needs of an eligible child, and each individ-
ual who owes child support with respect to the child
of—
(A) entitlement to benefits under this sec-
tion with respect to the child;
(B) the system for collecting and distribut-
ing child support (including past-due support)
owed with respect to the child;
(C) the rights and responsibilities of the
individual under the system; and
(D) the penalties for failure to cooperate in
the collection of child support under the system.
(2) TIMING.—The Secretary shall provide the
notice required by paragraph (1) with respect to an
eligible child—
(A) if the Secretary determines that the
child is an eligible child by October 1, 1996, not
later than such date;
(B) if the Secretary determines that the
child is an eligible child after such date, then—
(i) if a child support order has been
issued with respect to the child, within 5
days after the national registry established
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under section 3(a) receives a copy of the
order; or
(ii) if a child support order has not
been issued with respect to the child, upon
the determination of the Secretary that the
child is an eligible child.
(d) FEDERAL ADMINISTRATION OF STATE OR LOCAL
SUPPLEMENTARY CHILD SUPPORT ASSURANCE BENEFIT
PAYMENTS.—
(1) IN
GENERAL.—The Secretary may enter
into an agreement, with any qualified political sub-
division of the United States under which the Sec-
retary will, on behalf of the subdivision, pay a sup-
plementary child support assurance benefit to all eli-
gible individuals who reside in the subdivision, in ac-
cordance with such procedural rules or other general
administrative provisions as the Secretary finds nec-
essary to achieve efficient and effective administra-
tion of the child support assurance benefit program
under this section and the supplementary child sup-
port assurance benefit program of the subdivision.
(2) ADMINISTRATION
FEE.—The Secretary
shall assess each subdivision with which an agree-
ment under subsection (a) has been entered into an
administration fee in an amount equal to—
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(A) the number of payments made by the
Secretary on behalf of the subdivision under
this subsection for any month; multiplied by
(B) $1.67.
(3) FEES TO BE DEPOSITED IN THE TREAS-
URY.—All administration fees collected pursuant to
paragraph (2) shall be deposited in the general fund
of the Treasury of the United States as miscellane-
ous receipts.
(4) DEFINITIONS.—As used in this subsection:
(A) QUALIFIED POLITICAL SUBDIVISION.—
The term ‘‘qualified political subdivision’’
means any State or any political subdivision of
a State which has a supplementary child sup-
port assurance benefit program.
(B) STATE.—The term ‘‘State’’ includes
the District of Columbia.
(C) SUPPLEMENTARY CHILD SUPPORT AS-
SURANCE BENEFIT PROGRAM.—The term ‘‘sup-
plementary child support assurance benefit pro-
gram’’ means, with respect to a subdivision, any
program of the subdivision under which cash
benefits are payable to all and only those resi-
dents of the subdivision who are eligible individ-
uals.
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(e) REGULATIONS.—The Secretary may prescribe
such regulations as may be necessary to carry out this
section.
(f) DEFINITIONS.—As used in this section:
(1) CHILD
SUPPORT.—The term ‘‘child sup-
port’’ has the meaning given such term by section
462(b) of the Social Security Act.
(2) ELIGIBLE INDIVIDUAL.—The term ‘‘eligible
individual’’ means an individual who has responsibil-
ity for meeting the daily needs of an eligible child.
(3) ELIGIBLE
CHILD.—The term ‘‘eligible
child’’ means—
(A) a child who has not attained 18 years
of age with respect to whom child support is
owed under a court order, or an order of an ad-
ministrative process established under State
law; and
(B) any other child who has not attained
18 years of age if the State in which the child
resides determines that the custodial parent of
the child—
(i) has good cause for not seeking
child support with respect to the child; or
(ii) has cooperated in seeking child
support with respect to the child.
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(4) LOCALITY.—The term ‘‘locality’’ means a
metropolitan statistical area of the United States (as
defined by the Bureau of the Census for census pur-
poses).
(5) PAST-DUE SUPPORT.—The term ‘‘past-due
support’’ has the meaning given such term by sec-
tion 464(c)(1) of the Social Security Act.
(6) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Health and Human Services.
(g) 
EFFECT
ON
AFDC 
BENEFITS.—Section
402(a)(8)(A)(vi) of the Social Security Act (42 U.S.C.
602(a)(8)(A)(vi)) is amended by striking ‘‘the first $50
of any child support payments for such month received
in that month’’ and inserting ‘‘1⁄2 of any amount received
for the month under section 2(a) of the Child Security
Act of 1995’’.
(h) EFFECT
ON
MEDICAID
BENEFITS.—Section
1902(a)(17) of such Act (42 U.S.C. 1396a(a)(17)) is
amended—
(1) by striking ‘‘and (D)’’ and inserting ‘‘(D)’’;
and
(2) by striking ‘‘; and provide’’ and inserting
the following: ‘‘, and (E) provide for disregarding 50
percent of any income consisting of amounts paid
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under section 2(e) of the Child Security Act of 1995;
and provide’’.
(i) EFFECT ON HOUSING BENEFITS.—Notwithstand-
ing any other provision of law, any amount paid to a mem-
ber of a family under subsection (a) of this section may
not be considered as income for purposes of determining
the eligibility of the family for assistance or occupancy in
a unit assisted, the amount of benefits received by or pro-
vided on behalf of the family, or the amount paid by the
family for rent for a unit assisted, under—
(1) the United States Housing Act of 1937;
(2) title V of the Housing Act of 1949;
(3) section 101 of the Housing and Urban De-
velopment Act of 1965; or
(4) section 221(d)(3), 235, or 236 of the Na-
tional Housing Act.
(j) EFFECT ON BENEFITS UNDER THE FOOD STAMP
ACT OF 1977.—
(1) AMENDMENTS.—Section 5(d) of the Food
Stamp Act of 1977 (7 U.S.C. 2014(d)) is amend-
ed—
(A) by striking ‘‘and (16)’’ and inserting
‘‘(16)’’, and
(B) by inserting before the period at the
end the following: ‘‘, and (17) any payment re-
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ceived under section 2(a) of the Child Security
Act of 1995’’.
(2) 
APPLICATION
OF
AMENDMENTS.—The
amendments made by paragraph (1) shall not apply
with respect to certification periods beginning before
the effective date of this section.
(k) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall take effect on January
1, 1996.
SEC. 3. NATIONAL CHILD SUPPORT ORDER REGISTRY.
(a) ESTABLISHMENT.—Not later than October 1,
1995, the Secretary of Health and Human Services shall
establish a national registry of child support orders issued
or modified by any State court or administrative process
established under State law.
(b) MAINTENANCE OF ABSTRACTS OF CHILD SUP-
PORT ORDERS.—The registry shall maintain an abstract
of each child support order, which shall contain the follow-
ing information:
(1) The names, addresses, and social security
account numbers of—
(A) the individual obligated to make pay-
ments under the order; and
(B) the individual entitled to receive such
payments.
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(2) The name, address, and taxpayer identifica-
tion number of any employer of the individual re-
ferred to in paragraph (1)(A).
(3) The name and date of birth of any child
with respect to whom payments are to be made
under the order.
(4) The dollar amount of child support required
to be paid under the order and the times when such
payments are due.
(5) The date the order was issued or most re-
cently modified.
(6) Any such orders superseded by the order.
(7) Any other such orders issued with respect
to the child.
(c) ACCESS OF SECRETARY OF THE TREASURY TO
THE REGISTRY.—The Secretary of Health and Human
Services shall, upon request of the Secretary of the Treas-
ury, provide the Secretary of the Treasury with access to
the information contained in the registry.
(d) CHILD SUPPORT ORDER DEFINED.—As used in
this section, the term ‘‘child support order’’ means an
order requiring payments for support and maintenance of
a child or of a child and the parent with whom the child
is living.
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(e) TRANSMISSION OF COPIES OF CHILD SUPPORT
ORDERS TO THE NATIONAL REGISTRY.—Section 466(a)
of the Social Security Act (42 U.S.C. 666(a)) is amended
by inserting after paragraph (11) the following:
‘‘(12) Not later than January 1, 1996, proce-
dures to ensure that a copy of any child support
order issued or modified in the State (whether be-
fore or after the enactment of this paragraph) is
transmitted immediately to the national child sup-
port order registry established under section 3(a) of
the Child Security Act of 1995.’’.
(f) INCLUSION OF SOCIAL SECURITY NUMBERS IN
CHILD SUPPORT ORDERS.—Section 466(a) of the Social
Security Act (42 U.S.C. 666(a)), as amended by sub-
section (e) of this section, is amended by inserting after
paragraph (12) the following:
‘‘(13) Not later than January 1, 1996, proce-
dures to ensure that each child support order issued
or modified in the State (whether before or after the
enactment of this paragraph) contains the social se-
curity account number of each parent with rights or
obligations under the order.’’.
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SEC. 4. COLLECTION OF CHILD SUPPORT THROUGH WAGE
WITHHOLDING AND THE INCOME TAX COL-
LECTION SYSTEM.
(a) IN GENERAL.—Chapter 77 of the Internal Reve-
nue Code of 1986 (relating to miscellaneous provisions)
is amended by adding at the end thereof the following new
section:
‘‘SEC. 7524. COLLECTION OF CHILD SUPPORT.
‘‘(a) EMPLOYEE TO NOTIFY EMPLOYER OF CHILD
SUPPORT OBLIGATION.—
‘‘(1) IN GENERAL.—Each employee shall speci-
fy, on each withholding certificate furnished to such
employee’s employer—
‘‘(A) the monthly amount (if any) of each
child support obligation of such employee, and
‘‘(B) the TIN of the individual to whom
each such obligation is owed.
‘‘(2) WHEN CERTIFICATE FILED.—In addition
to the other required times for filing a withholding
certificate, a new withholding certificate shall be
filed within 10 days after the date of any change in
the information specified under paragraph (1).
‘‘(3) PERIOD
CERTIFICATE
IN
EFFECT.—Any
specification under paragraph (1) shall continue in
effect until another withholding certificate takes ef-
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fect which specifies a change in the information
specified under paragraph (1).
‘‘(b) EMPLOYER OBLIGATIONS.—
‘‘(1) IN
GENERAL.—Every employer who re-
ceives a certificate under subsection (a) that speci-
fies that the employee has a child support obligation
for any month shall deduct and withhold from the
wages paid by such employer to such employee dur-
ing each month that such certificate is in effect an
additional amount equal to the amount of such obli-
gation or such other amount as may be specified by
the Secretary under subsection (c).
‘‘(2) NOTICE TO SECRETARY.—
‘‘(A) IN GENERAL.—Every employer who
receives a withholding certificate shall, within
10 business days after such receipt, submit a
copy of such certificate to the Secretary.
‘‘(B) 
EXCEPTION.—Subparagraph 
(A)
shall not apply to any withholding certificate
if—
‘‘(i) a previous withholding certificate
is in effect with the employer, and
‘‘(ii) the information shown on the
new certificate with respect to child sup-
port is the same as the information with
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respect to child support shown on the cer-
tificate in effect.
‘‘(3) WHEN WITHHOLDING OBLIGATION TAKES
EFFECT.—Any withholding obligation with respect
to a child support obligation of an employee shall
commence with the first payment of wages after the
certificate is furnished.
‘‘(c) SECRETARY TO VERIFY AMOUNT
OF CHILD
SUPPORT OBLIGATION.—
‘‘(1) VERIFICATION
OF
INFORMATION
SPECI-
FIED ON WITHHOLDING CERTIFICATES.—Within 10
business days after receiving a withholding certifi-
cate of any employee, the Secretary shall determine
whether the information available to the Secretary
under section 3 of the Child Security Act of 1995
indicates that such employee has a child support ob-
ligation.
‘‘(2) EMPLOYER
NOTIFIED
IF
INCREASED
WITHHOLDING IS REQUIRED.—If the Secretary de-
termines that an employee’s child support obligation
is greater than the amount (if any) shown on the
withholding certificate in effect with respect to such
employee, the Secretary shall, within 5 business days
after such determination, notify the employer to
whom such certificate was furnished of the correct
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amount of such obligation, and such amount shall
apply in lieu of the amount (if any) specified by the
employee with respect to payments of wages by the
employer after the date the employer receives such
notice.
‘‘(3) DETERMINATION OF CORRECT AMOUNT.—
In making the determination under paragraph (2),
the Secretary shall take into account whether the
employee is an employee of more than 1 employer
and appropriately adjust the amount of the required
withholding from each such employer.
‘‘(d) MONTHLY PAYMENTS BY INDIVIDUALS WITH
INSUFFICIENT CHILD SUPPORT WITHHOLDING.—Each
individual who has a child support obligation for any
month shall pay, not later than the close of such month,
to the Secretary an amount equal to the excess (if any)
of—
‘‘(1) the amount of such obligation for such
month, over
‘‘(2) the amount (if any) deducted and withheld
under subsection (b) from the wages paid to such in-
dividual during such month.
‘‘(e) CHILD SUPPORT OBLIGATIONS REQUIRED TO
BE PAID WITH INCOME TAX RETURN.—
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‘‘(1) IN GENERAL.—The child support obliga-
tion of any individual for months ending with or
within any taxable year shall be paid—
‘‘(A) not later than the last date (deter-
mined without regard to extensions) prescribed
for filing his return of tax imposed by chapter
1 for such taxable year, and
‘‘(B)(i) if such return is filed not later
than such date, with such return, or
‘‘(ii) in any case not described in clause (i),
in such manner as the Secretary may by regula-
tions prescribe.
‘‘(2) 
CREDIT
FOR
AMOUNT
PREVIOUSLY
PAID.—The amount required to be paid by an indi-
vidual under paragraph (1) shall be reduced by the
sum of—
‘‘(A) the amount collected under this sec-
tion with respect to periods during the taxable
year, plus
‘‘(B) the amount (if any) paid by such in-
dividual under section 6654 by reason of sub-
section (f)(3) thereof for such taxable year.
‘‘(f) FAILURE TO PAY AMOUNT OWING.—If an indi-
vidual fails to pay the full amount required to be paid
under subsection (d) or (e) on or before due date for such
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payment, the Secretary shall assess and collect the unpaid
amount in the same manner, with the same powers, and
subject to the same limitations applicable to a tax imposed
by subtitle C the collection of which would be jeopardized
by delay.
‘‘(g) CREDIT OR REFUND FOR WITHHELD CHILD
SUPPORT IN EXCESS OF ACTUAL OBLIGATION.—There
shall be allowed as a credit against the taxes imposed by
subtitle A for the taxable year an amount equal to the
excess (if any) of—
‘‘(1) the aggregate of the amounts described in
subparagraphs (A) and (B) of subsection (e)(2),
over
‘‘(2) the actual child support obligation of the
taxpayer for such taxable year.
The credit allowed by this subsection shall be treated for
purposes of this title as allowed by subpart C of part IV
of subchapter A of chapter 1.
‘‘(h) CHILD SUPPORT TREATED AS TAXES.—
‘‘(1) IN GENERAL.—For purposes of penalties
and interest related to failure to deduct and with-
hold taxes, amounts required to be deducted and
withheld under this section shall be treated as taxes
imposed by chapter 24.
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‘‘(2) OTHER RULES.—Rules similar to the rules
of sections 3403, 3404, 3501, 3502, 3504, and 3505
shall apply with respect to child support obligations
required to be deducted and withheld.
‘‘(i) REMITTANCE OF CHILD SUPPORT COLLECTED
BY SECRETARY.—Payments received by the Secretary
pursuant to this section or by reason of section 6654(f)(3)
which are attributable to a child support obligation pay-
able for any month shall be paid (to the extent such pay-
ments do not exceed the amount of such obligation for
such month) within 10 days to the Secretary of Health
and Human Services for disbursement under section 2(b)
of the Child Security Act of 1995.
‘‘(j) DEFINITIONS AND SPECIAL RULES.—
‘‘(1) DEFINITIONS.—For purposes of this sec-
tion—
‘‘(A) WITHHOLDING
CERTIFICATE.—The
term ‘withholding certificate’ means the with-
holding exemption certificate used for purposes
of chapter 24.
‘‘(B) BUSINESS DAY.—The term ‘business
day’ means any day other than a Saturday,
Sunday, or legal holiday (as defined in section
7503).
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‘‘(2) TIMELY MAILING.—Any notice under sub-
section (b)(2) or (c)(2) which is delivered by United
States mail shall be treated as given on the date of
the United States postmark stamped on the cover in
which such notice is mailed.
‘‘(3) MODIFICATION
OF
CERTIFICATE.—The
Secretary shall modify the withholding certificate so
that the information required to be furnished under
subsection (a)(1) may be included on such certifi-
cate.’’
(b) WITHHELD CHILD SUPPORT TO BE SHOWN ON
W–2.—Subsection (a) of section 6051 of such Code is
amended by striking ‘‘and’’ at the end of paragraph (8),
by striking the period at the end of paragraph (9) and
inserting ‘‘, and’’, and by inserting after paragraph (9)
the following new paragraph:
‘‘(10) the total amount deducted and withheld
as a child support obligation under section 7524(b).’’
(c) APPLICATION OF ESTIMATED TAX.—
(1) IN
GENERAL.—Subsection (f) of section
6654 of such Code (relating to failure by individual
to pay estimated income tax) is amended by striking
‘‘minus’’ at the end of paragraph (2) and inserting
‘‘plus’’, by redesignating paragraph (3) as paragraph
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(4), and by inserting after paragraph (2) the follow-
ing new paragraph:
‘‘(3) the aggregate child support obligations of
the taxpayer for months ending with or within the
taxable year, minus’’.
(2) Paragraph (1) of section 6654(d) of such
Code is amended by adding at the end the following
new subparagraph:
‘‘(D) DETERMINATION OF REQUIRED AN-
NUAL PAYMENT FOR TAXPAYERS REQUIRED TO
PAY CHILD SUPPORT.—In the case of a tax-
payer who is required under section 7524 to
pay a child support obligation (as defined in
section 7524) for any month ending with or
within the taxable year, the required annual
payment shall be the sum of—
‘‘(i) the amount determined under
subparagraph (B) without regard to sub-
section (f)(3), plus
‘‘(ii) the aggregate amount of such
obligation for all months ending with or
within the taxable year.’’
(3) CREDIT FOR WITHHELD AMOUNTS, ETC.—
Subsection (g) of section 6654 of such Code is
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amended by adding at the end the following new
paragraph:
‘‘(3) CHILD SUPPORT OBLIGATIONS.—For pur-
poses of applying this section, the amounts collected
under section 7524 shall be deemed to be a payment
of the amount described in subsection (f)(3) on the
date such amounts were actually withheld or paid, as
the case may be.’’
(d) REPEAL OF REFUND OFFSET, ETC.—
(1)(A) Subsections (c) and (g) of section 6402
of such Code are hereby repealed.
(B) Paragraph (2) of section 6402(d) of such
Code is amended by striking ‘‘after such overpay-
ment is reduced’’ and all that follows through ‘‘Se-
curity Act and’’.
(C) Subsection (e) of section 6402 is amended
by striking ‘‘(c) or’’.
(2)(A) Section 6305 of such Code is hereby re-
pealed.
(B) The table of sections for subchapter A of
chapter 64 of such Code is amended by striking the
item relating to section 6305.
(e) OFFICE OF CHILD ADVOCATE.—
(1) IN GENERAL.—There is established in the
Department of Health and Human Services an office
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to be known as the ‘‘Office of the Child Advocate’’.
Such office, including all problem resolution officers,
shall be under the supervision and direction of an of-
ficial to be known as the ‘Child Advocate’ who shall
be appointed by the President by and with the ad-
vice and consent of the Senate, and who shall report
directly to the President. The Child Advocate shall
be entitled to compensation at the same rate as the
Chief Counsel for the Internal Revenue Service.
(2) FUNCTIONS OF OFFICE.—
(A) IN GENERAL.—It shall be the function
of the Office of the Child Advocate to—
(i) assist individuals to whom child
support obligations are owned in resolving
problems relating to the collection and pay-
ment of such obligations by the Internal
Revenue Service,
(ii) to the extent possible, propose
changes in the administrative practices of
the Internal Revenue Service to mitigate
problems identified under clause (i), and
(iii) 
identify 
potential 
legislative
changes which may be appropriate to miti-
gate such problems.
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(3) RESPONSIBILITIES
OF
COMMISSIONER
OF
INTERNAL REVENUE SERVICE.—The Commissioner
of Internal Revenue shall establish procedures re-
quiring a formal response to all recommendations
submitted to the Commissioner by the Child Advo-
cate and shall submit an annual report to the Con-
gress of the progress of the Internal Revenue Service
in resolving problems identified by the Child Advo-
cate.
(f) CLERICAL AMENDMENT.—The table of sections
for chapter 77 of such Code is amended by adding at the
end thereof the following new item:
‘‘Sec. 7524. Collection of child support.’’
(g) EFFECTIVE DATE.—The amendments made by
this section shall apply to calendar years after 1995, and
to taxable years beginning in such calendar years. For
purposes of section 7524 of the Internal Revenue Code
of 1986, as added by this section, all employees employed
on January 1, 1996, shall be treated as commencing em-
ployment on such date but such employees shall be treated
as meeting the requirement of subsection (a)(2) of such
section 7524 if the certificate referred to in such sub-
section is filed not later than March 1, 1996.
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SEC. 5. DISTRIBUTION BY THE DEPARTMENT OF HEALTH
AND HUMAN SERVICES OF CHILD SUPPORT
COLLECTED BY THE INTERNAL REVENUE
SERVICE.
(a) COLLECTED CHILD SUPPORT TO BE PAID TO
CUSTODIAL PARENT AFTER REIMBURSEMENT OF FED-
ERAL AND STATE AID.—Upon receipt of an amount col-
lected from an employee during a calendar month under
section 7524 of the Internal Revenue Code of 1986, or
under section 6654 of such Code by reason of subsection
(f)(3) thereof, on account of a child support obligation
owed with respect to an individual for the month, the Sec-
retary shall distribute the amount as follows:
(1) The amount shall be paid to the Federal
Government to the extent necessary to reimburse the
Federal Government for payments made to the indi-
vidual for the month under section 2(a) of this Act.
(2) Amounts in excess of any amount paid
under paragraph (1) of this subsection shall be paid
to the States to the extent necessary to reimburse
the States for all payments made to the individual
under State plans approved under part A of title IV
of the Social Security Act.
(3) Amounts in excess of any amount paid
under paragraphs (1) and (2) of this subsection
shall be paid to any other State which has provided
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aid to the individual under the State plan approved
under part A of title IV of the Social Security Act
to the extent necessary to reimburse such other
State for payments of such aid.
(4) Amounts in excess of any amount paid
under paragraphs (1), (2), and (3) of this subsection
shall be paid to the individual.
(b) NOTICE TO ACCOMPANY PAYMENT TO CUSTO-
DIAL PARENT.—Upon making any payment under this
section to an eligible individual, the Secretary shall trans-
mit to the individual and the State agency referred to in
section 402(a)(3) of the Social Security Act of the State
in which the individual resides a notice that specifies—
(1) the name of the individual;
(2) the amount of the payment;
(3) the method used to determine the amount
of the payment;
(4) the date the payment is made;
(5) the portion of the payment that is to be in-
cluded in the income of the eligible individual for
purposes of the State program of aid to families
with dependent children under part A of title IV of
the Social Security Act; and
(6) in the case of a payment that includes a
payment that has been in arrears—
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(A) the amount of the arrearage payment;
and
(B) a detailed statement of the status of
child support payments owed to the individual
by the employee referred to in subsection (a)
that are in arrears.
(c) EFFECTIVE DATE.—This section shall take effect
on January 1, 1996.
SEC. 6. STATE ROLE IN COLLECTION AND DISTRIBUTION
OF CHILD SUPPORT.
(a) ASSIGNMENT OF RIGHTS TO PAST-DUE SUP-
PORT.—
(1) 
CHILDREN
RECEIVING
AFDC.—Section
402(a)(26) of the Social Security Act (42 U.S.C.
602(a)(26) is amended—
(A) in subparagraph (A), by inserting
‘‘(except, in the case of child support, only
rights to past-due support (as defined in section
464(c)(1)))’’ after ‘‘support’’; and
(B) in subparagraph (B), by inserting
‘‘(except, in the case of child support payments,
only past-due support payments)’’ after ‘‘sup-
port payments’’.
(2) CHILDREN RECEIVING FOSTER CARE MAIN-
TENANCE PAYMENTS.—Section 471(a)(17) of such
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Act (42 U.S.C. 671(a)(17)) is amended by striking
‘‘support’’ and inserting ‘‘past-due support (as de-
fined in section 464(c)(1))’’.
(b) COLLECTION OF ONLY PAST-DUE SUPPORT.—
Section 464(c)(1) of such Act (42 U.S.C. 664(c)(1)) is
amended—
(1) by striking ‘‘term ‘past-due support’
means’’ and inserting ‘‘terms ‘support’ and ‘past-due
support’ mean’’; and
(2) by inserting ‘‘, for any period that ends be-
fore January 1, 1996’’ before the period.
(c) DISTRIBUTION OF PAST-DUE SUPPORT.—
(1) IN GENERAL.—Section 457(b)(1) of such
Act (42 U.S.C. 657(b)(1)) is amended—
(A) by striking ‘‘the first $50 of payments
for a month received in that month, and’’; and
(B) by inserting ‘‘(if the month ended be-
fore January 1, 1996)’’ after ‘‘prior month’’.
(2) NOTICE
OF
PAYMENT
TO
INDIVIDUAL.—
Section 457 of such Act (42 U.S.C. 657) is amended
by adding at the end the following:
‘‘(e) Upon making any payment under this section
to a family, the State shall transmit to the family and
to the Secretary a notice that specifies—
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‘‘(1) the name of the individual to whom the
payment is made;
‘‘(2) the amount of the payment;
‘‘(3) the method used to determine the amount
of the payment;
‘‘(4) the date the payment is made;
‘‘(5) the portion of the payment that is to be
included in the income of the eligible individual for
purposes of the State program of aid to families
with dependent children under part A of title IV of
the Social Security Act; and
‘‘(6) the extent to which the payment rep-
resents a child support arrearage of the individual
from whom the amount was collected; and
‘‘(7) in detail, the amount of any remaining
child support arrearage of the individual from whom
the amount was collected that is payable to the fam-
ily.’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall take effect on January 1, 1996.
SEC. 7. NATIONAL CHILD SUPPORT GUIDELINE COMMIS-
SION.
(a) ESTABLISHMENT.—The Secretary of Health and
Human Services (in this section referred to as the ‘‘Sec-
retary’’) shall establish in the Department of Health and
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Human Services a commission which shall be known as
the ‘‘National Child Support Guideline Commission’’ (in
this section referred to as the ‘‘Commission’’).
(b) DUTY OF THE COMMISSION.—
(1) DEVELOP
RECOMMENDATIONS
FOR
UNI-
FORM
NATIONAL
CHILD
SUPPORT
GUIDELINES.—
The Commission shall develop recommendations for
uniform national guidelines to be followed in deter-
mining the amount of a child support award.
(2) FACTORS TO BE CONSIDERED.—In develop-
ing such guidelines, the Commission shall take ac-
count of—
(A) the child care, educational, and health
care needs of the child;
(B) the income and resources of the par-
ents of the child;
(C) any other child support obligations of
the parents of the child;
(D) any spouse or other children of any
parent of the child;
(E) child custody arrangements, including
joint physical custody and split custody;
(F) visitation rights and needs;
(G) changes in the circumstances of the
child and of the parents of the child;
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(H) the frequency with which the guide-
lines should be reviewed or revised; and
(I) the extent (if any) to which parents
should be allowed to rebut the use of the guide-
lines.
(c) DUTIES OF THE SECRETARY.—
(1) APPOINTMENT OF MEMBERS.—
(A) IN GENERAL.—The Commission shall
have 10 members appointed by the Secretary,
as follows:
(i) 1 member shall be an economist.
(ii) 1 member shall be a lawyer.
(iii) 1 member shall be a judge.
(iv) 1 member shall be a representa-
tive of a child support agency.
(v) 1 member shall be a representative
of organizations that represent the inter-
ests of custodial parents.
(vi) 1 member shall be a representa-
tive of organizations that represent the in-
terests of noncustodial parents.
(vii) 1 member shall be a representa-
tive of organizations that represent the in-
terests of children.
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(viii) 1 member shall be an individual
involved in academic research into the
costs of raising children and comparative
living standards in households of different
sizes and compositions.
(ix) 1 member shall be an individual
involved in government research into the
costs of raising children and comparative
living standards in households of different
sizes and compositions.
(x) 1 member shall be an individual
involved in private research into the costs
of raising children and comparative living
standards in households of different sizes
and compositions.
(B) POLITICAL
AFFILIATION.—Not more
than 1⁄2 of the members of the Commission may
be of the same political party.
(2) COMPENSATION.—
(A) IN GENERAL.—Except as provided in
subparagraph (B), members of the Commission
shall be paid at a rate determined by the Sec-
retary for each day (including travel time) dur-
ing which they are engaged in the actual per-
formance of duties vested in the Commission.
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(B) NO COMPENSATION OF FEDERAL EM-
PLOYEES.—Members of the Commission who
are full-time officers or employees of the United
States or Members of Congress may not receive
additional pay, allowances, or benefits by reason
of their service on the Commission.
(C) TRAVEL EXPENSES.—Each member of
the Commission shall receive travel expenses,
including per diem in lieu of subsistence, in ac-
cordance with sections 5702 and 5703 of title
5, United States Code.
(3) CHAIRPERSON.—The Secretary shall serve
as the Chairperson for purposes of conducting the
business of the Commission, but may not vote on
any matter before the Commission.
(4) MEETINGS.—The Commission shall meet at
the call of the Secretary.
(5) STAFF.—The Secretary may detail, on a re-
imbursable basis, any of the personnel of the De-
partment of Health and Human Services to the
Commission to assist the Commission in carrying
out the duties of the Commission under this section.
(d) POWERS.—
(1) HEARINGS AND SESSIONS.—The Commis-
sion may, for the purpose of carrying out this sec-
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tion, hold hearings, sit and act at times and places,
take testimony, and receive evidence as the Commis-
sion considers appropriate.
(2) OBTAINING OFFICIAL DATA.—The Commis-
sion may secure directly from any department or
agency of the United States information necessary
to enable it to carry out this section. Upon request
of the Secretary, the head of that department or
agency shall furnish that information to the Com-
mission.
(3) MAILS.—The Commission may use the
United States mails in the same manner and under
the same conditions as other departments and agen-
cies of the United States.
(4) ADMINISTRATIVE
SUPPORT
SERVICES.—
Upon the request of the Secretary, the Adminis-
trator of General Services shall provide to the Com-
mission, on a reimbursable basis, the administrative
support services necessary for the Commission to
carry out its duties under this section.
(e) REPORT.—Not later than 1 year after the date
of the enactment of this Act, the Secretary shall transmit
to the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the
Senate a report that contains the recommendations of the
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Commission for national guidelines to be followed by the
States in making child support awards, together with its
recommendations for such legislation or administrative ac-
tion as the Commission considers appropriate.
(d) EFFECTIVE DATE.—This section shall take effect
on the date of the enactment of this Act.
(f) TERMINATION.—The Commission shall terminate
on the earlier of—
(1) the date the work of the Commission is
completed, as determined by the Secretary; or
(2) the date that is 1 year after the effective
date of this section.
SEC. 8. UNIFORM TERMINATION OF CHILD SUPPORT OBLI-
GATIONS.
(a) IN GENERAL.—Section 454 of the Social Security
Act (42 U.S.C. 654) 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 inserting after paragraph (24) the fol-
lowing:
‘‘(25) provide that the State shall have in effect
a law providing that a court order, or an order of
an administrative process established under State
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law, for support and maintenance of a child, or of
a child and the parent with whom the child is living
may not require the payment of such support or
maintenance with respect to—
‘‘(A) a child who has attained 18 years of
age, unless the parent claims an exemption for
the child under section 151 of the Internal Rev-
enue Code of 1986; or
‘‘(B) any child who has attained 21 years
of age.’’.
(b) EFFECTIVE DATE.—The amendments made by
this section shall take effect on January 1, 1996.
SEC. 9. REALLOCATION OF RESOURCES.
(a) STAFFING.—
(1) PROMULGATION OF METHODOLOGY TO BE
USED TO DETERMINE STATE STAFFING NEEDS.—
Section 452(a)(2) of the Social Security Act (42
U.S.C. 652(a)(1)) is amended by inserting ‘‘, and a
methodology to be used to determine such require-
ments’’ before the semicolon.
(2) EFFECTIVE DATE.—The amendment made
by paragraph (1) shall take effect on November 1,
1995.
(3) CERTAIN CONSULTATIONS REQUIRED.—Be-
fore prescribing a methodology to be used to deter-
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mine staffing requirements under section 452(a)(2)
of the Social Security Act, the Secretary of Health
and Human Services shall consult with the heads of
State child support enforcement agencies, experts in
the operation of State child support enforcement
programs.
(4) DETERMINATION
OF
REQUIRED
STATE
STAFFING NEEDS; DEVELOPMENT OF PLAN TO MEET
REQUIREMENTS.—The Secretary of Health and
Human Services shall—
(A) determine the staffing requirements
for each State child support enforcement pro-
gram, in consultation with the State, by using
the methodology established under section
452(a)(2) of the Social Security Act; and
(B) develop a plan that details the steps
that the State must take to meet such require-
ments by September 1, 1995.
(b) INCREASE IN FEDERAL FINANCIAL PARTICIPA-
TION.—Section 455(a)(2) of the Social Security Act (42
U.S.C. 655(a)(2)) is amended—
(1) in subparagraph (B), by striking ‘‘and’’;
(2) in subparagraph (C), by striking ‘‘fiscal
year 1990 and each fiscal year thereafter.’’ and in-
serting ‘‘fiscal years 1990, 1991, 1992, 1993, 1994,
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and 1995, and the first quarter of fiscal year 1996;
and’’; and
(3) by adding at the end the following:
‘‘(D) 82.5 percent for quarters beginning after
calendar year 1995.’’.
(c) MAINTENANCE OF EFFORT.—Section 455 of such
Act (42 U.S.C. 655) is amended by adding at the end the
following:
‘‘(f) Notwithstanding any other provision of this sec-
tion, the amount otherwise payable to a State for a quar-
ter under this section shall be reduced to the extent that
the total of the amount expended by the State from State
and local sources to carry out the State plans under part
A and this part during the quarter is less than the amount
so expended from such sources during the corresponding
quarter of the calendar year 1994.’’.
(d) MINIMUM AFDC STANDARD OF NEED.—Section
402(a) of such Act (42 U.S.C. 602(a)) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(44);
(2) by striking the period at the end of para-
graph (45) and inserting ‘‘; and’’; and
(3) by inserting after paragraph (45) the fol-
lowing:
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‘‘(46) provide that the State’s standard of need
for a family shall be an amount that is not less than
the greater of—
‘‘(A) 90 percent of the income official pov-
erty line (as defined by the Office of Manage-
ment and Budget, and revised annually in ac-
cordance with section 673(2) of the Omnibus
Budget Reconciliation Act of 1981) applicable
to a family of the same composition; or
‘‘(B) the State’s standard of need for the
family as of March 1, 1995.’’.
(e) EXPANDED AFDC COVERAGE FOR NEEDY STU-
DENTS.—Section 406(a)(2)(B) of such Act (42 U.S.C.
606(a)(2)(B)) is amended by striking ‘‘nineteen’’ each
place such term appears and inserting ‘‘21’’.
(f) OPERATION OF STATE AFDC PLAN AND STATE
CHILD SUPPORT ENFORCEMENT PLAN AS REQUIREMENT
UNDER STATE MEDICAID PLAN.—Section 1902(a) of
such Act (42 U.S.C. 1396a(a)) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(61);
(2) by striking the period at the end of para-
graph (62) and inserting ‘‘; and’’; and
(3) by adding at the end the following new
paragraph:
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‘‘(63) provide that the State—
‘‘(A) has in effect a plan approved under part
D of title IV and operates a child support program
in substantial compliance with such plan, and
‘‘(B) has in effect a plan approved under part
A of title IV and operates a program of aid to fami-
lies with dependent children in substantial compli-
ance with such plan.’’.
(g) EFFECTIVE DATE.—Except as provided in sub-
section (a), the amendments made by this section shall
take effect on January 1, 1996.
SEC. 10. DIRECT ACCOUNTABILITY OF CHILD SUPPORT EN-
FORCEMENT PROGRAMS.
(a) IN GENERAL.—Section 403(h) of such Act (42
U.S.C. 603(h))—
(1) is amended—
(A) in paragraph (1)—
(i) by striking ‘‘part D’’ and inserting
‘‘this part’’;
(ii) by striking ‘‘such part’’ and in-
serting ‘‘this part’’; and
(iii) by striking ‘‘—’’ and all that fol-
lows and inserting ‘‘5 percent.’’;
(B) in paragraph (2)(A), by striking ‘‘re-
ductions’’ and inserting ‘‘reduction’’; and
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(C) in paragraph (3), by striking ‘‘, section
402(a)(27),’’; and
(2) as so amended, is hereby transferred to sec-
tion 455 of such Act, inserted after subsection (b)
of such section 455 and designated as subsection (c)
of such section 455.
(b) CONFORMING AMENDMENT.—Section 454(1) of
such Act (42 U.S.C. 654(1)) is amended by inserting ‘‘and
carried out’’ after ‘‘in effect’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on January 1, 1996.
SEC. 11. SOCIAL SERVICES DEMONSTRATION PROJECTS.
(a) PURPOSE.—The Secretary of Health and Human
Services (in this section referred to as the ‘‘Secretary’’)
shall authorize 5 States to conduct 5-year demonstration
projects under which States are to give priority, to custo-
dial and noncustodial parents who are unable to support
their children financially, in the provision of services under
the job opportunities and basic skills training program
under part F of title IV of the Social Security Act and
under the Job Training Partnership Act, and in the provi-
sion of other Federal job training, education, and child
care services, in order to aid such parents to better provide
for themselves and their children.
(b) DUTIES OF THE SECRETARY.—
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(1) CONSIDERATION
OF
APPLICATIONS.—The
Secretary shall consider all applications received
from States desiring to conduct demonstration
projects under this section.
(2) APPROVAL OF APPLICATIONS.—
(A) NUMBER.—The Secretary shall ap-
prove not more than 5 applications to conduct
demonstration projects under this section.
(B) PRIORITY.—In approving such applica-
tions, the Secretary shall give priority to States
that are conducting programs similar to those
that would be conducted under this section.
(3) GRANTS.—The Secretary shall make a
grant in the amount of $2,000,000, in a lump sum,
to each State whose application to conduct a dem-
onstration project under this section is approved by
the Secretary, to assist the State in carrying out the
project.
(4) TIMING OF GRANTS.—The Secretary shall
make all grants under this section at the same time.
(c) REQUIREMENTS.—
(1) PRESCRIBED
BY
THE
SECRETARY.—Each
State that receives a grant for a demonstration
project under this section shall conduct the project
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in accordance with such requirements as the Sec-
retary may prescribe.
(2) EVALUATIONS AND REPORTS.—
(A) IN GENERAL.—
(i) INTERIM
EVALUATION
AND
RE-
PORT.—Each State that conducts a dem-
onstration project under this section shall
conduct an interim evaluation of the effec-
tiveness of the project after the project has
been conducted for 30 months, and shall
submit to the Secretary an interim report
that contains—
(I) information on the number of
parents involved in particular pro-
grams under the project;
(II) information on the average
length of time between the enrollment
of a parent and the employment of
the parent; and
(III) a description of any rela-
tionship found to exist between social
service programs and the payment of
child support.
(ii) FINAL
EVALUATION
AND
RE-
PORT.—Each State that conducts a dem-
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onstration project under this section shall
conduct a final evaluation of the effective-
ness of the project at the end of the
project, and shall submit to the Secretary
a final report that contains—
(I) information on the number of
parents involved in particular pro-
grams under the project;
(II) information on the average
length of time between the enrollment
of a parent and the employment of
the parent; and
(III) a description of any rela-
tionship found to exist between social
service programs and the payment of
child support.
(B) CONTENTS.—The evaluations and re-
ports required by subparagraph (A) with re-
spect to a demonstration project shall analyze
and describe (in a manner prescribed by the
Secretary)—
(i) the impact of the project on the
economic and noneconomic well-being of
children and adults in custodial and
noncustodial households;
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(ii) the rates at which custodial and
noncustodial parents increase participation
in the workforce as a result of the project;
(iii) the impact of the project on par-
ticipation rates in, amounts of aid provided
under, and overall level of funding for, the
program of aid to families with dependent
children under part A of title IV of the So-
cial Security Act; and
(iv) the impact on custodial and
noncustodial parents of access to education
and job training services under the project.
(d) REPORTS TO THE CONGRESS.—
(1) INTERIM
REPORT.—After receiving and
analyzing the interim reports required by subsection
(c)(2)(A)(i) and analyzing such reports, the Sec-
retary shall submit to the Committee on Ways and
Means and the Committee on Education and Labor
of the House of Representatives, and to the Commit-
tee on Finance and the Committee on Labor and
Human Resources of the Senate, a report that con-
tains—
(A) the results of the evaluations described
in the interim reports; and
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(B) a description of any improvements in
child support enforcement resulting from the
conduct of demonstration projects under this
section.
(2) COMPARATIVE EVALUATION.—
(A) IN
GENERAL.—The Secretary shall
submit to the Committee on Ways and Means
and the Committee on Education and Labor of
the House of Representatives, and to the Com-
mittee on Finance and the Committee on Labor
and Human Resources of the Senate, a report
that—
(i) contains a comparative evaluation
of the demonstration projects conducted
under this section;
(ii) identifies which of such projects,
or aspects of such projects, best contrib-
uted to the achievement of the purpose of
this section; and
(iii) makes such recommendations for
legislative and administrative action as the
Secretary deems appropriate.
(B) TIMING OF REPORTS.—The Secretary
shall submit the evaluation required under sub-
paragraph (A) with respect to a demonstration
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project after the project has been carried out
for 5 years.
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