TITLE III—POLICY CHANGES TO REWARD WORK
Sec. 301. Authority of States to establish enhanced earnings disregards for
AFDC recipients.
Sec. 302. Authority of States to define unemployment for purposes of the
AFDC-UP program.
Sec. 303. Dependent care credit to be refundable; advance payments of credit.
Sec. 304. Report on conflicting administrative requirements that inhibit coordi-
nation of the AFDC, food stamp, medicaid, and Job Training
Partnership Act programs.
Sec. 305. Outcome measures for the JOBS program.
Sec. 306. Enhance use of transitional child care and medicaid.
Sec. 307. Treatment of student earnings and income from programs under the
Job Training Partnership Act.
TITLE IV—CHILD SUPPORT ENFORCEMENT
Sec. 401. Federal child support order registry.
Sec. 402. Expansion of Federal parent locator systems.
Sec. 403. National reporting of employees and child support information.
Sec. 404. Reconciliation of child support obligation and payments on income
tax return.
Sec. 405. Uniform child support withholding order.
Sec. 406. State role.
Sec. 407. Consumer Credit Protection Act amendments.
Sec. 408. States required to enact the Uniform Interstate Family Support Act.
TITLE I—STATE WELFARE
REFORM OPTION
SEC. 101. WELFARE REFORM PLAN.
(a) STATE PLAN OPTION.—Section 402(a) of the
Social Security 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
following:
‘‘(46) at the option of the State, provide that
the State has in effect and operation a welfare re-
form plan approved under part G.’’.
(b) WELFARE REFORM PLAN.—Title IV of such Act
is amended by adding at the end the following:
‘‘PART G—PLAN AMENDMENTS IMPLEMENTING
WELFARE REFORM
‘‘SEC. 491. WELFARE REFORM PLAN.
‘‘(a) PURPOSE.—Any State that desires to carry out
a program under this part may submit to the Secretary
a welfare reform plan for reorienting the mission of the
State agency in order to enable the State agency to—
‘‘(1) integrate welfare and job development
services in the State and create linkages with public
and private employers, employment service agencies,
and other social service providers with the goal of fa-
cilitating access to job placement, skill training, and
other social services necessary for self-sufficiency;
‘‘(2) assist low income individuals in obtaining
employment and skills training that will eliminate or
minimize the need for providing public assistance to
such individuals;
‘‘(3) establish formal agreements between each
recipient of such aid and the State agency that
specify their mutual obligations in working to attain
long-term self-sufficiency for such recipients; and
‘‘(4) provide for the prompt involvement of each
such recipient, who is not exempt from participation
in the State program under part F, in employment,
job-search, self-sufficiency planning, and skills train-
ing that will lead to economic self-sufficiency.
‘‘(b) CONTENTS OF PLAN.—A welfare reform plan
shall contain—
‘‘(1) a welfare-job development integration plan
that meets the requirements of section 492; and
‘‘(2) a plan for increasing employment among
the individuals participating in the State program
under part F that includes specific strategies and
cost estimates for increasing the capacity of the
State to deliver services to the individuals that will
increase the number of hours worked by, the earn-
ings of, and the total income of the individuals.
‘‘(c) FORM OF PLAN.—A welfare reform plan shall
be in the form of amendments to the State plans under
parts A and F.
‘‘(d) DEFINITIONS.—
‘‘(1) GENERAL RULE.—The terms used in this
part shall have the meanings given such terms under
part A.
‘‘(2) OTHER TERMS.—As used in this part:
‘‘(A) ADJUSTED INCOME.—The term ‘ad-
justed income’ means all income other than—
‘‘(i) any refund made by reason of
section 32 of the Internal Revenue Code of
1986 (relating to earned income credit),
‘‘(ii) any payment by an employer
under section 3507 of such Code (relating
to advance payment of earned income cred-
it), and
‘‘(iii) any amount received through
the food stamp program under the Food
Stamp Act of 1977.
‘‘(B) PARTICIPANT.—The term ‘partici-
pant’ means an individual who is participating
in activities under this part, or who has re-
quested such participation.
‘‘(C) POVERTY LINE.—The term ‘poverty
line’ means the income official poverty line (as
defined by the Office of Management and
Budget, and revised annually in accordance
with section 673(2) of the Omnibus Budget
Reconciliation Act of 1981) applicable to a fam-
ily of the size involved.
‘‘SEC. 492. WELFARE-JOB DEVELOPMENT INTEGRATION
PLAN.
‘‘(a) DESCRIPTION.—A welfare-job development inte-
gration plan is a plan designed to integrate welfare and
job development services and to improve and expand case
management services available to recipients of aid under
the State plan approved under part A.
‘‘(b) CONTENTS.—A welfare-job development integra-
tion plan shall include strategies for—
‘‘(1) integrating job development personnel into
the management and operation of the State agency
for the purposes of—
‘‘(A) using such personnel in intake set-
tings in order to evaluate the earning capacity
and job development needs of applicants for
benefits that are based, in whole or in part, on
need and to provide the applicants with job
placement counseling in order to obviate or
minimize the need for obtaining such assist-
ance;
‘‘(B) increasing significantly the use of
such personnel in providing case management
services to recipients of aid under the State
plan approved under part A with the goal of in-
creasing the number of such recipients that are
engaged in employment or some form of work;
and
‘‘(C) enhancing linkages between the State
agency and employers, job training and edu-
cation institutions, and other social service pro-
viders;
‘‘(2) integrating information systems to provide
welfare and job development personnel with access
to relevant information about job openings, skill re-
quirements, and education and skill training oppor-
tunities;
‘‘(3) co-locating (where practicable) welfare,
employment, and child support enforcement services;
‘‘(4) establishing procedures for entering into
contracts with service providers under which pay-
ment levels are based on performance levels, and en-
tering into memoranda of understanding with job
training providers under which payment levels are
based on outcomes relating to job placement and
retention;
‘‘(5) establishing training procedures for wel-
fare personnel that emphasize job-placement, coun-
seling, and case management;
‘‘(6) establishing performance incentives for in-
dividual welfare and job development personnel
based on such factors as—
‘‘(A) the rate at which recipients of such
aid who are assisted by such personnel are
placed in jobs; and
‘‘(B) the average earnings of recipients of
such aid who are placed in jobs;
‘‘(7) modifying personnel plans and operating
and capital budgets to reduce the ratio within the
State agency of clients to case workers, with the
goals of limiting the ratio to not more than 100 cli-
ents per case worker, and improving the capacity of
the State to provide assistance to meet the needs of
minor parents; and
‘‘(8) setting such aid at a level so that the sum
of the aid payable to a family of an aid recipient
who is employed full-time and has entered into a
work-support agreement under section 493(b)(1)
and the earned income of the family results in an
adjusted income for the family of not less than the
90 percent of the poverty line.
‘‘(c) PERSONS REQUIRED TO PARTICIPATE OR TO BE
INCLUDED.—A welfare-job development integration plan
shall—
‘‘(1) provide that, as a continuing condition of
eligibility for aid under the State plan approved
under part A, an applicant or recipient of such aid
who is not exempt from participation in the program
of the State under part F must enter into an
Empowerment Compact with the State pursuant to
section 493; and
‘‘(2) contain a commitment by the State to
enter into an Empowerment Compact pursuant to
section 493 with each applicant for such aid (if eligi-
ble for such aid), and each recipient of such aid,
who—
‘‘(A) is not exempt from participation in
the program of the State under part F; or
‘‘(B) if exempt from such participation,
has requested such participation.
‘‘SEC. 493. EMPOWERMENT COMPACTS.
‘‘(a) DESCRIPTION.—An Empowerment Compact is a
written agreement that—
‘‘(1) specifies the obligations of the State and
of the participant in taking the steps necessary for
the participant to achieve long-term self-sufficiency;
and
‘‘(2) includes specific goals, and timetables for
the attainment of such goals, that will enable the
State and the participant to assess periodically the
progress of the participant toward self-sufficiency.
‘‘(b) TYPES.—An Empowerment Compact shall be of
1 of the following types:
‘‘(1) WORK-SUPPORT
AGREEMENT.—A work-
support agreement that provides, at a minimum, the
following:
‘‘(A) BENEFIT LEVELS.—
‘‘(i) IN GENERAL.—The amount pay-
able as aid to the participant under the
State plan approved under part A shall be
set at a level so that the sum of such aid
and the earnings of the participant from
full-time employment results in an ad-
justed income for the family of the partici-
pant of not less than 90 percent of the
poverty line, except that a family with
more than 4 members shall be considered
to have only 4 members.
‘‘(ii) REDUCTION OF EARNINGS DIS-
REGARDED.—If the adjusted income of the
family of the participant for a month ex-
ceeds the poverty line, the State may re-
duce the amount of earnings of the partici-
pant that is disregarded in determining the
amount of such aid.
‘‘(iii) MAXIMUM BENEFIT.—If the ad-
justed income of the family of the partici-
pant for a month (with such exclusions)
exceeds 150 percent of the poverty line, the
family shall not be eligible to receive aid
under the State plan approved under part
A.
‘‘(B) CHILD
SUPPORT
ORDER
REQUIRED
TO BE OBTAINED.—The participant must have
obtained a child support order for each child of
the participant who is living with the partici-
pant, and must cooperate with the State in ob-
taining support payments for the participant
and for any child with respect to whom aid
under the State plan is claimed unless the par-
ticipant is found to have good cause for refus-
ing to cooperate (as determined by the State
agency in accordance with the standards pre-
scribed 
by 
the 
Secretary 
under 
section
402(a)(26)(B)(ii)).
‘‘(C) ASSESSMENT.—Not later than 1 year
after the work-support agreement has been en-
tered into, the State shall assess whether the
participant has the capacity to earn more than
150 percent of the poverty line.
‘‘(D) 
REVISION
OF
EMPLOYABILITY
PLAN.—If the State determines that the partici-
pant does not have the capacity to earn more
than 150 percent of the poverty line, the State
shall require the participant to revise the
Empowerment Compact to include specific
plans and timetables for enhancing the earning
capacity of the participant through skills train-
ing or other activities that the State determines
are appropriate.
‘‘(E) MITIGATION
OF
REDUCED
INCOME
DUE TO REQUIRED REMEDIAL ACTIVITIES.—If
the participant must work fewer hours in order
to undertake the activities referred to in sub-
paragraph (D), the amount of aid payable to
the participant under the State plan approved
under part A shall be an amount that results
in the adjusted income for the family of the
participant of not less than 90 percent of the
average of such adjusted income during the 3-
month period that ends with the commencement
of such activities, but only if the monthly earn-
ings or work hours of the participant are not
less than 75 percent of the average of such
earnings or work hours during such 3-month
period.
‘‘(F) CASE MANAGEMENT SERVICES.—The
State agency shall provide case management
services to the participant (including engaging
with the participant in self-sufficiency plan-
ning), and coordinate with local schools, em-
ployers, and community-based organizations in
assisting the participant in overcoming personal
barriers to self-sufficiency (including substance
abuse), obtaining education and job-training,
and securing employment.
‘‘(G) TRANSITIONAL
CASE
MANAGEMENT
SERVICES.—The State agency shall provide case
management services to the participant for not
more than 12 months after aid to the partici-
pant under the State plan approved under part
A is terminated.
‘‘(H) PLACEMENT OF LIMITED CHILD SUP-
PORT
PAYMENTS
IN
INTEREST-BEARING
AC-
COUNT.—
‘‘(i) ESTABLISHMENT OF ACCOUNT.—
The State agency shall establish an inter-
est-bearing account for the participant if—
‘‘(I) the participant is entitled to
child support payments under a court
order or an order of an administrative
process established under State law;
and
‘‘(II) during the past 12 months,
an account has not been established
under this clause for the participant.
‘‘(ii) DEPOSITS INTO ACCOUNT.—Ex-
cept as provided in clause (iii), after receiv-
ing and paying to the participant the maxi-
mum amount of child support payments
payable to the participant under the State
plans approved under parts A and D, the
State agency shall deposit in the account
(if any) established under clause (i) the
first $50 of child support payments re-
ceived with respect to a child of the partici-
pant.
‘‘(iii) LIMITATION.—The State agency
shall not under clause (ii) deposit more
than $500 into any account established
under clause (i).
‘‘(iv) 
DISTRIBUTION.—The 
State
agency shall make the amounts contained
in the account available to a participant to
whom aid under the State plan approved
under part A has been terminated—
‘‘(I) within 14 days after such
termination, if such aid has been ter-
minated due to excessive earnings of
the participant; or
‘‘(II) within 45 days after such
termination, in any other case.
‘‘(2) SKILLS
DEVELOPMENT
AGREEMENT.—A
skills development agreement that provides, at a
minimum, the following:
‘‘(A) INCREASE
IN
ASSET
LIMITS; CASE
MANAGEMENT SERVICES; PLACEMENT OF LIM-
ITED CHILD SUPPORT PAYMENTS IN INTEREST-
BEARING ACCOUNT.—The same obligations set
forth in subparagraphs (F), (G), and (H) of
paragraph (1).
‘‘(B) GOALS
AND
TIMETABLES.—If the
participant is required to participate in the
State program under part F, the participant
shall establish specific goals and timetables (as
part of the employability plan developed for the
participant under section 482(b)(1)(B)) for ob-
taining employment and, as necessary, for en-
gaging in skills training and other activities in
order to increase the earning capacity of the
participant to at least 150 percent of the
poverty line.
‘‘(C) ASSESSMENT.—Not later than 1 year
after the skills development agreement has been
entered into, the State shall assess whether the
participant has the capacity to earn more than
150 percent of the poverty line.
‘‘(D) 
REVISION
OF
EMPLOYABILITY
PLAN.—If the State determines that the partici-
pant does not have the capacity to earn more
than 150 percent of the poverty line, the State
shall require the participant to revise the em-
ployability plan to include specific plans and
timetables for enhancing the earning capacity of
the participant through skills training or other
activities that the State determines are appro-
priate.
‘‘(c) EMPOWERMENT COMPACT TO REFLECT PREF-
ERENCES
OF
THE
PARTICIPANT.—The State agency
shall—
‘‘(1) inform the participant of the availability of
each type of Empowerment Compact described in
subsection (b);
‘‘(2) consult with the participant in the develop-
ment of an Empowerment Compact for the partici-
pant;
‘‘(3) inform the participant of the right of the
participant 
to 
suggest 
revisions 
in 
any
Empowerment Compact entered into with the partic-
ipant;
‘‘(4) consult with the participant in any revision
of an Empowerment Compact entered into with the
participant; and
‘‘(5) to the maximum extent possible and con-
sistent 
with 
this 
section, 
ensure 
that 
the
Empowerment Compact for a participant reflects the
preferences of the participant.
‘‘(d) REASSESSMENT AND REVISION.—Not later than
6 months after the State and a participant enter into an
Empowerment Compact, and not less frequently than bi-
annually thereafter, the State—
‘‘(1) shall assess the progress of the participant
toward achieving the goals for self-sufficiency set
forth in the Empowerment Compact; and
‘‘(2) may revise the terms of the Empowerment
Compact in order to enhance the progress of the
participant toward self-sufficiency.
‘‘SEC. 494. APPROVAL AND IMPLEMENTATION OF WELFARE
REFORM PLAN.
‘‘(a) APPROVAL.—Not later than 120 days after a
State submits to the Secretary a welfare reform plan that
meets the requirements of section 491, and after the Sec-
retary provides for public review of and public comment
on the plan, the Secretary shall approve the plan.
‘‘(b) IMPLEMENTATION.—
‘‘(1) IN GENERAL.—Upon approval by the Sec-
retary of the welfare reform plan of a State, the
State may implement the plan.
‘‘(2) CERTIFICATION.—
‘‘(A) AFDC APPLICANTS.—Not later than
6 months after the Secretary approves the wel-
fare reform plan of a State, the State shall cer-
tify 
that 
the 
State 
has 
entered 
into
Empowerment Compacts with a significant
number (as prescribed by the Secretary in regu-
lations) of the applicants for aid under the
State plan under part A with whom the State
is required to enter into Empowerment Com-
pacts.
‘‘(B) AFDC RECIPIENTS.—Not later than
1 year after the Secretary approves the welfare
reform plan of a State, the State shall certify
to the Secretary that the State has entered into
Empowerment Compacts with a significant
number (as prescribed by the Secretary in regu-
lations) of the recipients of aid under the State
plan under part A with whom the State is re-
quired to enter into Empowerment Compacts.
‘‘SEC. 495. EVALUATION.
‘‘Within 3 years after the Secretary approves the wel-
fare reform plan of a State and every 3 years thereafter,
the State shall submit to the Secretary a report that con-
tains the findings of an evaluation of the impacts of the
plan on, at a minimum, the following:
‘‘(1) The earnings of, number of hours worked
by, and total income of recipients of aid under the
State plan approved under part A.
‘‘(2) The rate at which such recipients obtain
child support orders.
‘‘(3) The average duration of receipt of such
aid.
‘‘(4) The rate at which former recipients of
such aid have resumed receipt of such aid.
‘‘(5) The number of hours spent by such recipi-
ents in work programs and skill training pro-
grams.’’.
(c) INCREASED RESOURCE DISREGARDS FOR AFDC
RECIPIENTS WHO HAVE ENTERED INTO EMPOWERMENT
COMPACTS.—Section 402(a)(7)(B) of such Act (42 U.S.C.
602(a)(7)(B)) is amended—
(1) by inserting (or, in the case of a family any
of 
whose 
members 
has 
entered 
into 
an
Empowerment Compact with the State, $5,000)’’
after ‘‘may determine’’; and
(2) by inserting ‘‘(or, in the case of a family
any of whose members has entered into an
Empowerment Compact with the State, $3,000 or
such lower amount that is not less than $2,000 as
the State may determine)’’ before ‘‘, (ii)’’.
(d) DEADLINE FOR RAPID ASSESSMENT AND REFER-
RAL.—Section 482(b) of such Act (42 U.S.C. 682(b)) is
amended by adding at the end the following:
‘‘(4) Within 60 days after an individual becomes re-
quired to participate in the program of a State under this
part, the State agency shall conduct the assessment of the
individual, develop an employability plan for the individ-
ual, and refer the individual to a program component.’’.
TITLE 
II—INCENTIVES 
FOR
STATE 
PARTICIPATION 
IN
WELFARE REFORM
SEC. 201. INCREASED FUNDING FOR THE STATE JOBS PRO-
GRAM.
Section 403(l) of the Social Security Act (42 U.S.C.
603(l)) is amended by adding at the end the following:
‘‘(5)(A) Notwithstanding any other provision of this
subsection:
‘‘(i) A welfare reform State shall not be subject
to any limitation on payments under this subsection
by reason of subsection (k).
‘‘(ii) The Secretary shall pay to any welfare re-
form State for any fiscal year after fiscal year 1994
an amount equal to 90 percent of the amount (if
any) by which the cash expenditures of the State for
the costs of operating a program under part F (in-
cluding cash expenditures for the costs of providing
child care pursuant to section 402(g)(1)(A)) for the
fiscal year exceeds the total of such cash expendi-
tures for fiscal year 1994, in lieu of any payment for
such expenditures under subsection (a) of this
section.
‘‘(B) Subparagraph (A) shall not apply to a welfare
reform State for a fiscal year unless the State meets the
following requirements:
‘‘(i) The expenditures of the State for the costs
of operating a program under part F (whether in
cash or in kind) for the fiscal year is not less than
the amount so expended during fiscal year 1994.
‘‘(ii) Beginning 3 years after the Secretary ap-
proves the welfare reform plan of the State, the par-
ticipation rate of the State is not less than 50
percent.
‘‘(iii) The expenditures of the State for the
costs of providing child care pursuant to section
402(g) (whether in cash or in kind) for the fiscal
year is not less than such expenditures for fiscal
year 1994.
‘‘(C) The term ‘welfare reform State’ means a State
that has a plan approved under part G and has made any
certification required by section 494(b).’’.
SEC. 202. AUTHORITY TO ADJUST INDIVIDUAL AFDC BENE-
FITS QUARTERLY.
Section 402(a) of the Social Security Act (42 U.S.C.
602(a)), as amended by section 101(a) of this Act, is
amended—
(1) by striking ‘‘and’’ at the end of paragraph
(45);
(2) by striking the period at the end of para-
graph (46) and inserting ‘‘; and’’; and
(3) by inserting after paragraph (46) the
following:
‘‘(47) if the State is a welfare reform State (as
defined in section 403(l)(5)(C)), provide that if the
State elects to reduce to quarterly the frequency
with which the State adjusts the amount payable to
individuals participating in activities under the State
plan approved under part G, the State must modify
such amount (in accordance with regulations pre-
scribed by the Secretary) if such an individual pre-
sents documentation that—
‘‘(A) the income of the individual during
the succeeding 3-month period will be less than
such income during the most recent 3-month
period; or
‘‘(B) the income of the individual during
the succeeding 3-month period will be less than
the amount the State has determined will be
the income of the individual for such period.’’.
SEC. 203. GRANTS TO SUPPORT WELFARE REFORM.
(a) WELFARE REFORM PLANNING GRANTS.—The
Secretary may make grants to States for the purpose of
developing welfare reform plans pursuant to part G of title
IV of the Social Security Act.
(b) LIMITATIONS
ON AUTHORIZATION
OF APPRO-
PRIATIONS.—The Secretary may expend in any of fiscal
years 1994, 1995, 1996, 1997, 1998, 1999, and 2000 for
grants under subsection (a) of this section not more than
1 percent of the amounts appropriated for payments under
section 403(l) of the Social Security Act for the fiscal year.
TITLE III—POLICY CHANGES TO
REWARD WORK
SEC. 301. AUTHORITY OF STATES TO ESTABLISH EN-
HANCED EARNINGS DISREGARDS FOR AFDC
RECIPIENTS.
Section 402(a)(8)(B) of the Social Security Act (42
U.S.C. 602(a)(8)(B)) is amended—
(1) by striking ‘‘and’’ at the end of clause (i);
and
(2) by adding at the end the following:
‘‘(iii) notwithstanding clauses (ii) and (iv)
of subparagraph (A) and clause (ii) of this sub-
paragraph, may disregard earned income of any
child or relative receiving aid to families with
dependent children, or of any other individual
(living in the same home as such relative and
child) whose needs as taken into account in
making the determination under paragraph (7),
in accordance with any combination of rules
which (as determined by the State in accord-
ance with regulations prescribed by the Sec-
retary) is at least as favorable to the recipient
of such aid as the combination of rules con-
tained in such clauses, but not more favorable
to the recipient than a rule providing for the
disregard of the first $200 of the total of such
earned income for such month plus 1⁄2 of the
remainder thereof; and’’.
SEC. 302. AUTHORITY OF STATES TO DEFINE UNEMPLOY-
MENT FOR PURPOSES OF THE AFDC–UP PRO-
GRAM.
Section 407(a) of the Social Security Act (42 U.S.C.
607(a)) is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(a)’’;
(2) by striking ‘‘Secretary’’ and inserting
‘‘State’’; and
(3) by adding at the end the following:
‘‘(2) The standards prescribed pursuant to paragraph
(1) shall not impose a limit of less than 100 hours on
the amount of time during which a parent who is the prin-
cipal earner may be employed during a month.’’.
SEC. 303. DEPENDENT CARE CREDIT TO BE REFUNDABLE;
ADVANCE PAYMENTS OF 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
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) 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.’’.
(I) The table of sections for subpart A of
such part IV is amended by striking the item
relating to section 21.
(3) EFFECTIVE DATE.—The amendments made
by this subsection shall apply to taxable years begin-
ning after the date of the enactment of this Act.
(b) ADVANCE PAYMENT OF CREDIT.—
(1) IN GENERAL.—Chapter 25 of such Code
(relating to general provisions relating to employ-
ment taxes) is amended by inserting after section
3507 the following new section:
‘‘SEC. 3507A. ADVANCE PAYMENT OF DEPENDENT CARE
CREDIT.
‘‘(a) GENERAL RULE.—Except as otherwise provided
in this section, every employer making payment of wages
with respect to whom a dependent care credit eligibility
certificate is in effect shall, at the time of paying such
wages, make an additional payment equal to such employ-
ee’s dependent care credit advance amount.
‘‘(b) DEPENDENT CARE CREDIT ELIGIBILITY CER-
TIFICATE.—For purposes of this title, a dependent care
credit eligibility certificate is a statement furnished by an
employee to the employer which—
‘‘(1) certifies that the employee will be eligible
to receive the credit provided by section 35 for the
taxable year,
‘‘(2) certifies that the employee does not have
a dependent care credit eligibility certificate in effect
for the calendar year with respect to the payment of
wages by another employer,
‘‘(3) states whether or not the employee’s
spouse has a dependent care credit eligibility certifi-
cate in effect, and
‘‘(4) estimates the amount of dependent care
credit of the employee for the calendar year.
For purposes of this section, a certificate shall be treated
as being in effect with respect to a spouse if such a certifi-
cate will be in effect on the first status determination date
following the date on which the employee furnishes the
statement in question.
‘‘(c) 
DEPENDENT
CARE
CREDIT
ADVANCE
AMOUNT.—
‘‘(1) IN GENERAL.—For purposes of this title,
the term ‘dependent care credit advance amount’
means, with respect to any payroll period, the
amount determined—
‘‘(A) on the basis of the employee’s wages
from the employer for such period,
‘‘(B) on the basis of the employee’s esti-
mated amount of dependent care credit included
in the dependent care credit eligibility certifi-
cate, and
‘‘(C) in accordance with tables provided by
the Secretary.
‘‘(2) ADVANCE AMOUNT TABLES.—The tables
referred to in paragraph (1)(C) shall be similar in
form to the tables prescribed under section 3402
and, to the maximum extent feasible, shall be coordi-
nated with such tables and the tables prescribed
under section 3507(c).
‘‘(d) DEPENDENT CARE CREDIT.—For purposes of
this section, the term ‘dependent care credit’ means the
credit allowable by section 35.
‘‘(e) OTHER RULES.—For purposes of this section,
rules similar to the rules of subsections (d) and (e) of sec-
tion 3507 shall apply.
‘‘(f) REGULATIONS.—The Secretary shall prescribe
such regulations as may be necessary to carry out the pur-
poses of this section.’’.
(2) CLERICAL AMENDMENT.—The table of sec-
tions for chapter 25 of such Code is amended by in-
serting after the item relating to section 3507 the
following new item:
‘‘Sec. 3507A. Advance payment of dependent care credit.’’.
(3) EFFECTIVE DATE.—The amendments made
by this subsection shall apply to taxable years begin-
ning more than 1 year after the date of the enact-
ment of this Act.
SEC. 304. REPORT ON CONFLICTING ADMINISTRATIVE RE-
QUIREMENTS THAT INHIBIT COORDINATION
OF THE AFDC, FOOD STAMP, MEDICAID, AND
JOB 
TRAINING 
PARTNERSHIP 
ACT 
PRO-
GRAMS.
Within 1 year after the date of the enactment of this
Act, and annually thereafter, the Secretaries of Agri-
culture, Health and Human Services, and Labor, in con-
sultation with the States, shall jointly submit to the Con-
gress a detailed report describing any provision of title IV
of the Social Security Act, the Food Stamp Act of 1977,
the Job Training Partnership Act, or any other Federal
or State law or regulation that may inhibit implementation
of welfare reform plans (whether or not submitted for ap-
proval under part G of such title).
SEC. 305. OUTCOME MEASURES FOR THE JOBS PROGRAM.
(a) ESTABLISHMENT OF REQUIREMENTS BY REGU-
LATION.—Within 9 months after the date of the enact-
ment of this Act, the Secretary of Health and Human
Services shall establish the requirements to be followed by
each State in developing and applying outcome measures
and targets for assessing the effectiveness of the State
program under section 402(a)(19) and part F of title IV
of the Social Security Act. The outcome measures shall
consist of methods for assessing the success of a State’s
program under such part in increasing the average num-
ber of hours worked by, the average earnings of, and total
income of participants in the program. The methods shall
take into account macroeconomic factors in the State that
affect the ability of the program to increase the employ-
ment of its participants.
(b) EFFECT OF FAILURE TO SUBMIT PLAN FOR
MEETING REQUIREMENTS.—
(1) REDUCTION OF JOBS MATCHING RATES.—
Section 403(l) of the Social Security Act (42 U.S.C.
603(l)), as amended by section 201 of this Act, is
amended by adding at the end the following:
‘‘(6) The amount otherwise payable to the State
under this subsection shall be reduced by 5 percent if the
State has not submitted for the approval of the Secretary
a plan for meeting the requirements established pursuant
to 305(a) of the Work-First Welfare Reform Act of
1994.’’.
(2) EFFECTIVE DATE.—The amendment made
by paragraph (1) shall take effect 12 months after
the Secretary establishes the requirements required
by subsection (a).
SEC. 306. ENHANCE USE OF TRANSITIONAL CHILD CARE
AND MEDICAID.
(a) GAO REPORT ON METHODS OF DETERMINING
USE.—Within 6 months after the date of the enactment
of this Act, the Comptroller General of the United States
shall submit to the Congress a methodology for determin-
ing—
(1) the proportion of children eligible for child
care services under section 402(g) of the Social
Security Act who are receiving such services; and
(2) the proportion of children eligible for ex-
tended medical assistance benefits under a State
plan approved under title XIX of such Act by reason
of section 1925 of such Act who are receiving such
benefits.
(b) IMPROVED STATE EFFORT TO ENCOURAGE PAR-
TICIPATION.—Section 402(g)(3)(A) of the Social Security
Act (42 U.S.C. 602(g)(3)(A)) is amended by adding at
the end the following:
‘‘(iii) In the case of amounts expended for child care
pursuant to this subsection by a State which has not made
a good faith effort to develop clear and simple information
materials describing available child care assistance and
medical assistance under the State plan approved under
title XIX, the otherwise applicable rate for purposes of
section 403(a) shall be reduced by 5 percentage points.’’.
(c) OPTION
TO
PROVIDE
FREE
TRANSITIONAL
CHILD
CARE
TO
FAMILIES
BELOW
THE
POVERTY
LINE.—Section 402(g)(1)(A) of such Act (42 U.S.C.
602(g)(1)(A)) is amended by adding at the end the follow-
ing:
‘‘(viii) Notwithstanding clause (vii), each State agen-
cy may elect not to require a family to contribute to child
care provided under clause (ii) if the income of the family
does not exceed the income official poverty line (as defined
by the Office of Management and Budget, and revised an-
nually in accordance with section 673(2) of the Omnibus
Budget Reconciliation Act of 1981) applicable to a family
of the size involved.’’.
(d) OPTION TO PROVIDE TRANSITIONAL CHILD
CARE TO NONREQUESTING FAMILY THAT AGREES TO
ACCEPT IT.—Section 402(g)(1)(A) of such Act (42 U.S.C.
602(g)(1)(A)), as amended by subsection (c) of this sec-
tion, is amended by adding at the end the following:
‘‘(ix) Each State agency may guarantee child care to
a family that has not requested such care if the family
is eligible for such care and agrees to receive such care.’’.
SEC. 307. TREATMENT OF STUDENT EARNINGS AND IN-
COME FROM PROGRAMS UNDER THE JOB
TRAINING PARTNERSHIP ACT.
(a) RESOURCE DISREGARDS.—Section 402(a)(7)(B)
of the Social Security Act (42 U.S.C. 602(a)(7)(B)) is
amended—
(1) by striking ‘‘or’’ at the end of clause (iii);
and
(2) by inserting ‘‘, or (v) the earned income of
any child to the extent disregarded under paragraph
(8)’’ before the semicolon.
(b) INCOME DISREGARDS.—Section 402(a)(8)(A) of
such Act (42 U.S.C. 602(a)(8)(A)) is amended—
(1) in clause (i)—
(A) by inserting ‘‘applying for or’’ before
‘‘receiving’’; and
(B) by inserting ‘‘(including a child
(whether or not married) who has not attained
20 years of age)’’ after ‘‘dependent child’’; and
(2) in clause (v)—
(A) by striking ‘‘may’’ and inserting
‘‘shall’’;
(B) by inserting ‘‘(including any child
(whether or not married) who has not attained
20 years of age)’’ after ‘‘dependent child’’; and
(C) by striking ‘‘time (not to exceed six
months with respect to earned income)’’ and in-
serting ‘‘time,’’.
(c) EXCLUSION FROM GROSS INCOME TEST.—Sec-
tion 402(a)(18) of such Act (42 U.S.C. 602(a)(18)) is
amended by striking ‘‘paragraph (8)(A)(v) or 8(A)(viii)’’
and inserting ‘‘clause (i), (v), or (viii) of paragraph
(8)(A)’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall take effect on October 1, 1994.
TITLE IV—CHILD SUPPORT
ENFORCEMENT
SEC. 401. FEDERAL CHILD SUPPORT ORDER REGISTRY.
(a) ESTABLISHMENT.—Not later than October 1,
1995, the Secretary shall establish a Federal registry of
child support orders issued or modified by any State court
or administrative process established under State law.
(b) COMPARISON OF INFORMATION ON W–4 FORMS
WITH INFORMATION IN CHILD SUPPORT ORDERS.—With-
in 10 days after the registry established under subsection
(a) receives a W–4 form of an employee, the registry
shall—
(1) compare the information on the form with
the information in the registry on the child support
obligations of the employee; and
(2) transmit to the registry established under
section 466(a)(12) of the State in which the em-
ployee is employed a notice as to whether the
amount specified on the W–4 form as the monthly
child support obligation of the employee is accurate
or not.
(c) REGULATIONS.—The Secretary shall prescribe
such regulations as may be necessary to carry out this
section, especially in cases involving an employee who has
2 or more employers or child support obligations.
(d) STATE ACCESS TO THE REGISTRY.—The Sec-
retary shall, upon request of any State, provide the State
with access to the information contained in the registry
established under subsection (a).
(e) DEFINITIONS.—As used in this section:
(1) CHILD SUPPORT ORDER.—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.
(2) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Health and Human Services.
(3) STATE.—The term ‘‘State’’ includes the
several States, the District of Columbia, the Com-
monwealth of Puerto Rico, the Commonwealth of the
Northern Mariana Islands, the United States Virgin
Islands, Guam, American Samoa, and the Trust
Territory of the Pacific Islands.
SEC. 402. EXPANSION OF FEDERAL PARENT LOCATOR SYS-
TEMS.
(a) EXPANSION OF FUNCTIONS.—Section 453(a) of
the Social Security Act (42 U.S.C. 653(a)) is amended
by striking ‘‘enforcing support obligations against such
parent’’ and inserting ‘‘establishing parentage, establish-
ing, modifying, and enforcing child support obligations’’.
(b) ACCESS TO ADDITIONAL DATA BASES.—Section
453 of such Act (42 U.S.C. 653) is amended—
(1) in subsection (b), by striking ‘‘the most re-
cent address and place of employment’’ and insert-
ing ‘‘the most recent residential address, employer
name and address, and amounts and nature of in-
come and assets’’;
(2) in subsection (c)(3), by striking ‘‘the resi-
dent parent’’ and inserting ‘‘either parent’’; and
(3) in subsection (e), by adding at the end the
following:
‘‘(4) The Secretary of the Treasury shall enter into
an agreement with the Secretary to provide prompt access
by the Secretary (in accordance with this subsection and
section 6103(l)(6) of the Internal Revenue Code of 1986)
to all Federal income tax returns filed by individuals with
the Internal Revenue Service.’’.
(c) EXPANSION OF ACCESS TO THE NATIONAL PAR-
ENT LOCATOR NETWORK.—Section 453 of such Act (42
U.S.C. 653) is amended by adding at the end the
following:
‘‘(g) The Secretary shall expand the Parent Locator
Service to establish a national network based on the com-
prehensive statewide child support enforcement systems
developed by the States, to—
‘‘(1) allow each State to—
‘‘(A) locate any absent parent who owes
child support or for whom a child support obli-
gation is being established, by—
‘‘(i) accessing the records of other
State agencies and sources of locate infor-
mation directly from one computer system
to another; and
‘‘(ii) accessing Federal sources of lo-
cate information in the same fashion;
‘‘(B) access the files of other States to de-
termine whether there are other child support
orders and obtain the details of those orders;
‘‘(C) provide for both on-line and batch
processing of locate requests, with on-line ac-
cess restricted to cases in which the information
is needed immediately (for such reasons as
court appearances) and batch processing used
to ‘troll’ data bases to locate individuals or up-
date information periodically; and
‘‘(D) direct locate requests to individual
States or Federal agencies, broadcast requests
to selected States, or broadcast cases to all
States when there is no indication of the source
of needed information;
‘‘(2) provide for a maximum of 48-hour turn-
around time for information to be broadcast and re-
turned to a requesting State;
‘‘(3) provide ready access to courts and admin-
istrative agencies of the information on the network
by location of a computer terminal in each court;
and
‘‘(4) access the registries of child support or-
ders maintained by States pursuant to section
466(a)(12).’’.
SEC. 403. NATIONAL REPORTING OF EMPLOYEES AND
CHILD SUPPORT INFORMATION.
(a) IN GENERAL.—The Secretary of the Treasury, in
consultation with the Secretary of Labor, shall establish
a system of reporting of employees by requiring employers
to provide a copy of every employee’s W–4 form to the
Federal child support order registry established pursuant
to section 401(a) of the Work-First Welfare Reform Act
of 1994 and to the child support order registry established
pursuant to section 466(a)(12) of the Social Security Act
by the State in which the employment is located—
(1) in the case of employees hired on or after
the effective date of this section, on the date the em-
ployee is hired; or
(2) in the case of employees hired before such
effective date, within 10 days after such effective
date.
(b) INCLUSION OF CHILD SUPPORT INFORMATION
ON W–4 FORMS.—The Secretary of the Treasury shall
modify the W–4 form to enable the employee to indicate
on the form—
(A) whether the employee owes child sup-
port, and if so—
(i) to whom the support is payable
and the amount of the support payable;
and
(ii) whether the support is to be paid
through wage withholding; and
(B) whether health care insurance is avail-
able to the new employee, and, if so, whether
the employee has obtained such insurance for
the dependent children of the employee.
SEC. 404. RECONCILIATION OF CHILD SUPPORT OBLIGA-
TION AND PAYMENTS ON INCOME TAX RE-
TURN.
(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. RECONCILIATION OF CHILD SUPPORT OBLIGA-
TION AND PAYMENTS ON INCOME TAX RE-
TURN.
‘‘(a) IN GENERAL.—Each applicable child support
obligation of any individual for months ending with or
within any taxable year shall be paid—
‘‘(1) not later than the last date (determined
without regard to extensions) prescribed for filing
the individual’s return of tax imposed by chapter 1
for such taxable year, and
‘‘(2)(A) if such return is filed not later than
such date, with such return, or
‘‘(B) in any case not described in subparagraph
(A), in such manner as the Secretary may by regula-
tions prescribe.
‘‘(b) OFFSET
FOR WITHHELD CHILD SUPPORT,
ETC.—There shall be allowed as a credit against the
amount required to be paid under subsection (a) by an
individual the sum of—
‘‘(1) the amount (if any) deducted and withheld
pursuant to State law from the wages received by
such individual during the taxable year,
‘‘(2) the amount (if any) paid by such individ-
ual under section 6654 by reason of subsection
(f)(3) thereof for such taxable year, and
‘‘(3) the amount paid by such individual di-
rectly to the person to whom the obligation is owed
(or, if such person has assigned to a State the right
to collect the obligation, the State).
‘‘(c) CREDIT OR REFUND FOR PAYMENTS IN EXCESS
OF ACTUAL OBLIGATION.—There shall be allowed as a
credit against the tax 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
paragraphs (1), (2), and (3) of subsection (a) for
such taxable year, over
‘‘(2) the aggregate of the child support obliga-
tions 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.
‘‘(d) FAILURE TO PAY AMOUNT OWING.—If an indi-
vidual fails to pay the full amount required to be paid
under subsection (a) on or before due date for such pay-
ment, 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.
‘‘(e) APPLICABLE CHILD SUPPORT OBLIGATION.—
For purposes of this section, the term ‘applicable child
support obligation’ means a legal obligation to provide
child support (as defined in section 462(b) of the Social
Security Act).
‘‘(f) AMOUNTS COLLECTED BY SECRETARY PAID TO
STATE REGISTRIES.—Amounts collected under this sec-
tion and section 6654 by reason of an applicable child sup-
port obligation shall be paid by the Secretary to the appro-
priate State registry established pursuant to section
466(a)(12)(A)(i) of the Social Security Act.’’
(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 of child support obliga-
tions withheld pursuant to State law.’’
(c) APPLICATION OF ESTIMATED TAX PENALTY.—
(1) Subsection (f) of section 6654 of such Code
(relating to failure by individual to pay estimated in-
come tax) is amended by striking ‘‘minus’’ at the
end of paragraph (2) and inserting ‘‘plus’’, by redes-
ignating paragraph (3) as paragraph (4), and by in-
serting after paragraph (2) the following new para-
graph:
‘‘(3) the aggregate applicable child support obli-
gation (as defined in section 7524(a)) of the tax-
payer 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 an applicable 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
amended by adding at the end the following new
paragraph:
‘‘(3) CHILD SUPPORT.—For purposes of apply-
ing this section, the sum of—
‘‘(A) amounts deducted and withheld
under State law for applicable child support ob-
ligations, and
‘‘(B) amounts paid by the individual di-
rectly to the person to whom the obligation is
owed (or, if such person has assigned to a State
the right to collect the obligation, the State),
shall be deemed to be a payment of the amount de-
scribed in subsection (f)(3) on the date such
amounts were actually withheld or paid, as the case
may be.’’.
(d) 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. Reconciliation of child support obligation and pay-
ments on income tax return.’’.
(e) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1995.
SEC. 
405. 
UNIFORM 
CHILD 
SUPPORT 
WITHHOLDING
ORDER.
Section 452(a) of the Social Security Act (42 U.S.C.
652(a)) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(9);
(2) by striking the period at the end of para-
graph (10) and inserting ‘‘; and’’; and
(3) by inserting after paragraph (10) the fol-
lowing:
‘‘(11) develop a uniform order to be used in all
cases in which income is to be withheld for the pay-
ment of child support, which shall contain the name
of the individual whose income is to be withheld, the
number of children covered by the order, and the in-
dividual or State to whom the withheld income is to
be paid, and be generic to allow for the service of
the order on all sources of income.’’.
SEC. 406. STATE ROLE.
(a) STATE CHILD SUPPORT ORDER REGISTRIES.—
Section 466(a) of the Social Security Act (42 U.S.C.
666(a)) is amended by inserting after paragraph (11) the
following:
‘‘(12) Procedures under which the—
‘‘(A) State child support enforcement
agency shall—
‘‘(i) establish and maintain a child
support order registry which shall in-
clude—
‘‘(I) a copy of each child support
order issued or modified in the State
on or after the effective date of this
paragraph;
‘‘(II) a copy of each child support
order issued or modified in the State
before the effective date of this para-
graph that is being enforced under the
State plan; and
‘‘(III) a copy of each child sup-
port order issued or modified in the
State before the enactment of this
paragraph that the parties to the
order have requested be included in
the Federal child support order reg-
istry established pursuant to section
401(a) of the Work-First Welfare Re-
form Act of 1994;
‘‘(ii)(I) immediately upon receipt of a
child support order referred to in subclause
(I) or (II) of clause (i), transmit a copy of
the order to the Federal registry; and
‘‘(II) beginning 2 years after such
date of enactment, transmit to the Federal
registry a copy of each child support order
referred to in clause (i)(III); and
‘‘(iii) distribute in accordance with
section 457(b) all amounts received from
employers that have been deducted and
withheld from the wages of employees for
the payment of child support obligations,
and all amounts received from the Internal
Revenue 
Service 
pursuant 
to 
section
7524(f) of the Internal Revenue Code of
1986, within 10 days after receipt;
‘‘(B) allow any individual owed support
pursuant to a child support order issued or
modified in the State who alleges that an em-
ployer 
has 
failed 
to 
comply 
subsection
(b)(11)(B)(ii) with respect to the order, or that
the State has failed to comply with subpara-
graph (A)(iii) of this paragraph with respect to
amounts withheld from wages pursuant to the
order and paid to the State, to bring an action
against the employer or the State, as the case
may be, in any State court and recover dam-
ages, including interest; and
‘‘(C) the State agency referred to in sec-
tion 402(a)(3) shall notify the State child sup-
port enforcement agency of the commencement
or termination of aid under the State plan ap-
proved under part A to any individual or fam-
ily, within 10 days after such commencement or
termination.’’.
(b) DIRECT WAGE WITHHOLDING.—Section 466(b)
of such Act (42 U.S.C. 666(b)) is amended by adding at
the end the following:
‘‘(11)(A)(i) Upon the issuance or modification
by a State court or administrative agency of an
order imposing a child support obligation on an indi-
vidual, the State shall transmit to any employer of
the individual a wage withholding order developed
under section 452(a)(11) directing the employer to
withhold amounts from the wages of the individual
pursuant to the order, or such greater amount as
the State child support order registry established
pursuant to subsection (a)(12)(A) may determine is
the total amount of the child support obligations of
the individual.
‘‘(ii) Clause (i) shall not apply to an order upon
agreement of the parties to the order and the court
or administrative agency that issued or modified the
order.
‘‘(iii) An agreement referred to in clause (ii)
may be unilaterally rescinded only by the individual
to whom child support is payable under the order.
‘‘(B) Any individual or entity engaged in com-
merce, as a condition of doing business in the State,
shall, on receipt of a wage withholding order devel-
oped under section 452(a)(11) that is regular on its
face and has been issued by a court of any State—
‘‘(i) immediately provide a copy of the
order to the employee subject to the order;
‘‘(ii) comply with the order by forwarding
to the State registry established pursuant to
subsection (a)(12)(A) of this section, within 5
days after the end of each payroll period ending
after receipt of the order, the greater of—
‘‘(I) the amount required to be with-
held pursuant to the order; or
‘‘(II) the amount that the State reg-
istry has notified the employer is the
amount required to be withheld from the
wages of the employee for payment of child
support obligations of the employee; and
‘‘(iii) keep records of the amounts so with-
held.
‘‘(C) Such an order may be served on the in-
come source directly or by first-class mail.
‘‘(D) An individual or entity who complies with
subparagraph (B)(ii) with respect to such an order
may not be held liable for wrongful withholding of
income from the employee subject to the order.
‘‘(E) The State shall impose a civil fine of
$1,000 on any individual or entity who receives such
an order for each failure to comply with subpara-
graph (B)(ii) with respect to the order.
‘‘(F) The State shall have in effect procedures
for carrying out this paragraph in cases involving an
employee who has 2 or more employers or child sup-
port obligations.
‘‘(12) If the State transmits to an individual or
entity engaged in commerce only outside the State
a wage withholding order issued by the State with
respect to an employee of the individual or entity,
and the individual or entity contests or refuses to
comply with the order, the State shall send an infor-
mational copy of the order to the registry established
under subsection (a)(12)(A) of any other State in
which the individual or entity is engaged in
commerce.
‘‘(13) If an employee requests a hearing to con-
test wage withholding based on claim of a mistake
of fact, the hearing may be held in the State from
which the income is paid or in which the employee
is employed, and, within 45 days after the income
source receives the withholding order, the entity con-
ducting the hearing must adjudicate the claim. The
State in which the hearing is held shall provide ap-
propriate services in cases enforced under the State
plan to ensure that the interests of the individual to
whom the withheld income is to be paid are ade-
quately represented.’’.
(c) PRIORITIES
IN APPLICATION
OF WITHHELD
WAGES.—Section 466(b) of such Act (42 U.S.C. 666(b)),
as amended by subsection (b) of this section, is amended
by inserting after paragraph (13) the following:
‘‘(14) Procedures under which the amounts
withheld pursuant to a child support or wage with-
holding order are to be applied in the following
order:
‘‘(A) To payments of support due during
the month of withholding.
‘‘(B) To payments of premiums for health
care insurance coverage for dependent children.
‘‘(C) To payments of support due before
the month of withholding, and of unreimbursed
health-care expenses.’’.
(d) ACCESS
TO VARIOUS DATA BASES.—Section
466(a) of such Act (42 U.S.C. 666(a)), as amended by
subsection (a) of this section, is amended by inserting
after paragraph (12) the following:
‘‘(13) Procedures under which the State child
support enforcement agency shall have automated
on-line 
or 
batch 
access 
(or, 
if 
necessary,
nonautomated access) to information regarding resi-
dential addresses, employers and employer address-
es, income and assets, and medical insurance bene-
fits with respect to absent parents that is available
through any data base maintained by—
‘‘(A) any agency of the State or any politi-
cal subdivision thereof, that contains informa-
tion on residential addresses, or on employers
and employer addresses, as the State deems ap-
propriate;
‘‘(B) any publicly regulated utility com-
pany located in the State; and
‘‘(C) any credit reporting agency located in
the State.’’.
(e) EXPANDED INTERACTION WITH THE NATIONAL
PARENT LOCATOR NETWORK.—Section 454(16) of such
Act (42 U.S.C. 654(16)) is amended—
(1) by striking ‘‘and (E)’’ and inserting ‘‘(E)’’;
and
(2) by striking ‘‘enforcement;’’ and inserting
‘‘enforcement, and (F) to provide access to the na-
tional network developed pursuant to section
453(g);’’.
(f) PRIVATE ACCESS TO LOCATE AND ENFORCE-
MENT SERVICES.—Section 466(a) of such Act (42 U.S.C.
666(a)), as amended by subsections (a) and (d) of this
section, is amended by inserting after paragraph (13) the
following:
‘‘(14)(A) Procedures under which private attor-
neys and pro se obligees must be given access to
State locate resources and through enforcement
techniques of the State child support enforcement
agency, for the purpose of establishing, modifying,
and enforcing child support and parentage orders, in
accordance with safeguards established—