H. R. 4—71
‘‘(iv) The number of months of ineligibility under this clause
for an individual shall be equal to—
‘‘(I) the total, cumulative uncompensated value of all the
individual’s resources so disposed of on or after the look-back
date specified in clause (ii)(I), divided by
‘‘(II) the amount of the maximum monthly benefit payable
under section 1611(b) to an eligible individual for the month
in which the date specified in clause (ii)(II) occurs.
‘‘(B) An individual shall not be ineligible for benefits under
this title by reason of subparagraph (A) if the Commissioner deter-
mines that—
‘‘(i) the individual intended to dispose of the resources
at fair market value;
‘‘(ii) the resources were transferred exclusively for a pur-
pose other than to qualify for benefits under this title;
‘‘(iii) all resources transferred for less than fair market
value have been returned to the individual; or
‘‘(iv) the denial of eligibility would work an undue hardship
on the individual (as determined on the basis of criteria estab-
lished by the Commissioner in regulations).
‘‘(C) For purposes of this paragraph, in the case of a resource
held by an individual in common with another person or persons
in a joint tenancy, tenancy in common, or similar arrangement,
the resource (or the affected portion of such resource) shall be
considered to be disposed of by such individual when any action
is taken, either by such individual or by any other person, that
reduces or eliminates such individual’s ownership or control of
such resource.
‘‘(D)(i) Notwithstanding subparagraph (A), this subsection shall
not apply to a transfer of a resource to a trust if the portion
of the trust attributable to such resource is considered a resource
available to the individual pursuant to subsection (e)(3) (or would
be so considered, but for the application of subsection (e)(4)).
‘‘(ii) In the case of a trust established by an individual (within
the meaning of subsection (e)(2)(A)), if from such portion of the
trust (if any) that is considered a resource available to the individual
pursuant to subsection (e)(3) (or would be so considered but for
the application of subsection (e)(2)) or the residue of such portion
upon the termination of the trust—
‘‘(I) there is made a payment other than to or for the
benefit of the individual, or
‘‘(II) no payment could under any circumstance be made
to the individual,
then the payment described in subclause (I) or the foreclosure
of payment described in subclause (II) shall be considered a disposal
of resources by the individual subject to this subsection, as of
the date of such payment or foreclosure, respectively.
‘‘(2)(A) At the time an individual (and the individual’s eligible
spouse, if any) applies for benefits under this title, and at the
time the eligibility of an individual (and such spouse, if any) for
such benefits is redetermined, the Commissioner of Social Security
shall—
‘‘(i) inform such individual of the provisions of paragraph
(1) providing for a period of ineligibility for benefits under
this title for individuals who make certain dispositions of
resources for less than fair market value, and inform such
individual that information obtained pursuant to clause (ii)
H. R. 4—72
will be made available to the State agency administering a
State plan approved under title XIX (as provided in subpara-
graph (B)); and
‘‘(ii) obtain from such individual information which may
be used in determining whether or not a period of ineligibility
for such benefits would be required by reason of paragraph
(1).
‘‘(B) The Commissioner of Social Security shall make the
information obtained under subparagraph (A)(ii) available, on
request, to any State agency administering a State plan approved
under title XIX.
‘‘(3) For purposes of this subsection—
‘‘(A) the term ‘trust’ includes any legal instrument or device
that is similar to a trust; and
‘‘(B) the term ‘benefits under this title’ includes supple-
mentary payments pursuant to an agreement for Federal
administration under section 1616(a), and payments pursuant
to an agreement entered into under section 212(b) of Public
Law 93–66.’’.
(2) EFFECTIVE DATE.—The amendment made by this sub-
section shall be effective with respect to transfers that occur
at least 90 days after the date of the enactment of this Act.
(b) TREATMENT OF ASSETS HELD IN TRUST.—
(1) TREATMENT
AS
RESOURCE.—Section 1613 (42 U.S.C.
1382) is amended by adding at the end the following new
subsection:
‘‘TRUSTS
‘‘(e)(1) In determining the resources of an individual who has
not attained 18 years of age, the provisions of paragraph (3) shall
apply to a trust established by such individual.
‘‘(2)(A) For purposes of this subsection, an individual shall
be considered to have established a trust if any assets of the
individual were transferred to the trust.
‘‘(B) In the case of an irrevocable trust to which the assets
of an individual and the assets of any other person or persons
were transferred, the provisions of this subsection shall apply to
the portion of the trust attributable to the assets of the individual.
‘‘(C) This subsection shall apply without regard to—
‘‘(i) the purposes for which the trust is established;
‘‘(ii) whether the trustees have or exercise any discretion
under the trust;
‘‘(iii) any restrictions on when or whether distributions
may be made from the trust; or
‘‘(iv) any restrictions on the use of distributions from the
trust.
‘‘(3)(A) In the case of a revocable trust, the corpus of the
trust shall be considered a resource available to the individual.
‘‘(B) In the case of an irrevocable trust, if there are any cir-
cumstances under which payment from the trust could be made
to or for the benefit of the individual, the portion of the corpus
from which payment to or for the benefit of the individual could
be made shall be considered a resource available to the individual.
‘‘(4) The Commissioner may waive the application of this sub-
section with respect to any individual if the Commissioner deter-
mines, on the basis of criteria prescribed in regulations, that such
application would work an undue hardship on such individual.
H. R. 4—73
‘‘(5) For purposes of this subsection—
‘‘(A) the term ‘trust’ includes any legal instrument or device
that is similar to a trust;
‘‘(B) the term ‘corpus’ means all property and other
interests held by the trust, including accumulated earnings
and any other addition to such trust after its establishment
(except that such term does not include any such earnings
or addition in the month in which such earnings or addition
is credited or otherwise transferred to the trust);
‘‘(C) the term ‘asset’ includes any income or resource of
the individual, including—
‘‘(i) any income otherwise excluded by section 1612(b);
‘‘(ii) any resource otherwise excluded by this section;
and
‘‘(iii) any other payment or property that the individual
is entitled to but does not receive or have access to because
of action by—
‘‘(I) such individual;
‘‘(II) a person or entity (including a court) with
legal authority to act in place of, or on behalf of,
such individual; or
‘‘(III) a person or entity (including a court) acting
at the direction of, or upon the request of, such individ-
ual; and
‘‘(D) the term ‘benefits under this title’ includes supple-
mentary payments pursuant to an agreement for Federal
administration under section 1616(a), and payments pursuant
to an agreement entered into under section 212(b) of Public
Law 93–66.’’.
(2) TREATMENT AS INCOME.—Section 1612(a)(2) (42 U.S.C.
1382a(a)(2)) is amended—
(A) by striking ‘‘and’’ at the end of subparagraph (E);
(B) by striking the period at the end of subparagraph
(F) and inserting ‘‘; and’’; and
(C) by adding at the end the following new subpara-
graph:
‘‘(G) any earnings of, and additions to, the corpus of
a trust (as defined in section 1613(f)) established by an
individual (within the meaning of section 1613(e)(2)(A))
and of which such individual is a beneficiary (other than
a trust to which section 1613(e)(4) applies), except that
in the case of an irrevocable trust, there shall exist cir-
cumstances under which payment from such earnings or
additions could be made to, or for the benefit of, such
individual.’’.
(3) EFFECTIVE DATE.—The amendments made by this sub-
section shall take effect on January 1, 1996, and shall apply
to trusts established on or after such date.
(c) REQUIREMENT TO ESTABLISH ACCOUNT.—
(1) IN GENERAL.—Section 1631(a)(2) (42 U.S.C. 1383(a)(2))
is amended—
(A) by redesignating subparagraphs (F) and (G) as
subparagraphs (G) and (H), respectively; and
(B) by inserting after subparagraph (E) the following
new subparagraph:
‘‘(F)(i)(I) Each representative payee of an eligible individual
under the age of 18 who is eligible for the payment of benefits
H. R. 4—74
described in subclause (II) shall establish on behalf of such individ-
ual an account in a financial institution into which such benefits
shall be paid, and shall thereafter maintain such account for use
in accordance with clause (ii).
‘‘(II) Benefits described in this subclause are past-due monthly
benefits under this title (which, for purposes of this subclause,
include State supplementary payments made by the Commissioner
pursuant to an agreement under section 1616 or section 212(b)
of Public Law 93–66) in an amount (after any withholding by
the Commissioner for reimbursement to a State for interim assist-
ance under subsection (g)) that exceeds the product of—
‘‘(aa) 6, and
‘‘(bb) the maximum monthly benefit payable under this
title to an eligible individual.
‘‘(ii)(I) A representative payee may use funds in the account
established under clause (i) to pay for allowable expenses described
in subclause (II).
‘‘(II) An allowable expense described in this subclause is an
expense for—
‘‘(aa) education or job skills training;
‘‘(bb) personal needs assistance;
‘‘(cc) special equipment;
‘‘(dd) housing modification;
‘‘(ee) medical treatment;
‘‘(ff) therapy or rehabilitation; or
‘‘(gg) any other item or service that the Commissioner
determines to be appropriate;
provided that such expense benefits such individual and, in the
case of an expense described in item (cc), (dd), (ff), or (gg), is
related to the impairment (or combination of impairments) of such
individual.
‘‘(III) The use of funds from an account established under
clause (i) in any manner not authorized by this clause—
‘‘(aa) by a representative payee shall constitute misuse
of benefits for all purposes of this paragraph, and any represent-
ative payee who knowingly misuses benefits from such an
account shall be liable to the Commissioner in an amount
equal to the total amount of such misused benefits; and
‘‘(bb) by an eligible individual who is his or her own rep-
resentative payee shall be considered an overpayment subject
to recovery under subsection (b).
‘‘(IV) This clause shall continue to apply to funds in the account
after the child has reached age 18, regardless of whether benefits
are paid directly to the beneficiary or through a representative
payee.
‘‘(iii) The representative payee may deposit into the account
established pursuant to clause (i)—
‘‘(I) past-due benefits payable to the eligible individual
in an amount less than that specified in clause (i)(II), and
‘‘(II) any other funds representing an underpayment under
this title to such individual, provided that the amount of such
underpayment is equal to or exceeds the maximum monthly
benefit payable under this title to an eligible individual.
‘‘(iv) The Commissioner of Social Security shall establish a
system for accountability monitoring whereby such representative
payee shall report, at such time and in such manner as the Commis-
H. R. 4—75
sioner shall require, on activity respecting funds in the account
established pursuant to clause (i).’’.
(2) EXCLUSION
FROM
RESOURCES.—Section 1613(a) (42
U.S.C. 1382b(a)) is amended—
(A) in paragraph (9), by striking ‘‘; and’’ and inserting
a semicolon;
(B) in the first paragraph (10), by striking the period
and inserting a semicolon;
(C) by redesignating the second paragraph (10) as para-
graph (11), and by striking the period and inserting ‘‘;
and’’; and
(D) by adding at the end the following:
‘‘(12) the assets and accrued interest or other earnings
of any account established and maintained in accordance with
section 1631(a)(2)(F).’’.
(3) EXCLUSION FROM INCOME.—Section 1612(b) (42 U.S.C.
1382a(b)) is amended—
(A) by striking ‘‘and’’ at the end of paragraph (19);
(B) by striking the period at the end of paragraph
(20) and inserting ‘‘; and’’; and
(C) by adding at the end the following new paragraph:
‘‘(21) the interest or other earnings on any account estab-
lished 
and 
maintained 
in 
accordance 
with 
section
1631(a)(2)(F).’’.
(4) EFFECTIVE DATE.—The amendments made by this sub-
section shall apply to payments made after the date of the
enactment of this Act.
SEC. 214. REDUCTION IN CASH BENEFITS PAYABLE TO INSTITU-
TIONALIZED INDIVIDUALS WHOSE MEDICAL COSTS ARE
COVERED BY PRIVATE INSURANCE.
(a) IN GENERAL.—Section 1611(e)(1)(B) (42 U.S.C. 1382(e)(1)(B))
is amended—
(1) by striking ‘‘title XIX, or’’ and inserting ‘‘title XIX,’’;
and
(2) by inserting ‘‘or, in the case of an eligible individual
under the age of 18 receiving payments (with respect to such
individual) under any health insurance policy issued by a pri-
vate provider of such insurance’’ after ‘‘section 1614(f)(2)(B),’’.
(b) EFFECTIVE DATE.—The amendment made by this section
shall apply to benefits for months beginning 90 or more days
after the date of the enactment of this Act, without regard to
whether regulations have been issued to implement such
amendments.
SEC. 215. REGULATIONS.
Within 3 months after the date of the enactment of this Act,
the Commissioner of Social Security shall prescribe such regulations
as may be necessary to implement the amendments made by this
subtitle.
H. R. 4—76
Subtitle C—State Supplementation
Programs
SEC. 221. REPEAL OF MAINTENANCE OF EFFORT REQUIREMENTS
APPLICABLE 
TO 
OPTIONAL 
STATE 
PROGRAMS 
FOR
SUPPLEMENTATION OF SSI BENEFITS.
Section 1618 (42 U.S.C. 1382g) is hereby repealed.
Subtitle D—Studies Regarding
Supplemental Security Income Program
SEC. 231. ANNUAL 
REPORT 
ON 
THE 
SUPPLEMENTAL 
SECURITY
INCOME PROGRAM.
Title XVI (42 U.S.C. 1381 et seq.), as amended by section
201(c), is amended by adding at the end the following new section:
‘‘ANNUAL REPORT ON PROGRAM
‘‘SEC. 1637. (a) Not later than May 30 of each year, the Commis-
sioner of Social Security shall prepare and deliver a report annually
to the President and the Congress regarding the program under
this title, including—
‘‘(1) a comprehensive description of the program;
‘‘(2) historical and current data on allowances and denials,
including number of applications and allowance rates at initial
determinations, reconsiderations, administrative law judge
hearings, council of appeals hearings, and Federal court appeal
hearings;
‘‘(3) historical and current data on characteristics of recipi-
ents and program costs, by recipient group (aged, blind, work
disabled adults, and children);
‘‘(4) projections of future number of recipients and program
costs, through at least 25 years;
‘‘(5) number of redeterminations and continuing disability
reviews, and the outcomes of such redeterminations and
reviews;
‘‘(6) data on the utilization of work incentives;
‘‘(7) detailed information on administrative and other pro-
gram operation costs;
‘‘(8) summaries of relevant research undertaken by the
Social Security Administration, or by other researchers;
‘‘(9) State supplementation program operations;
‘‘(10) a historical summary of statutory changes to this
title; and
‘‘(11) such other information as the Commissioner deems
useful.
‘‘(b) Each member of the Social Security Advisory Board shall
be permitted to provide an individual report, or a joint report
if agreed, of views of the program under this title, to be included
in the annual report under this section.’’.
SEC. 232. STUDY OF DISABILITY DETERMINATION PROCESS.
(a) IN GENERAL.—Not later than 90 days after the date of
the enactment of this Act, and from funds otherwise appropriated,
the Commissioner of Social Security shall make arrangements with
H. R. 4—77
the National Academy of Sciences, or other independent entity,
to conduct a study of the disability determination process under
titles II and XVI of the Social Security Act. This study shall be
undertaken in consultation with professionals representing appro-
priate disciplines.
(b) STUDY COMPONENTS.—The study described in subsection
(a) shall include—
(1) an initial phase examining the appropriateness of, and
making recommendations regarding—
(A) the definitions of disability in effect on the date
of the enactment of this Act and the advantages and dis-
advantages of alternative definitions; and
(B) the operation of the disability determination proc-
ess, including the appropriate method of performing com-
prehensive assessments of individuals under age 18 with
physical and mental impairments;
(2) a second phase, which may be concurrent with the
initial phase, examining the validity, reliability, and consistency
with current scientific knowledge of the standards and individ-
ual listings in the Listing of Impairments set forth in appendix
1 of subpart P of part 404 of title 20, Code of Federal Regula-
tions, and of related evaluation procedures as promulgated
by the Commissioner of Social Security; and
(3) such other issues as the applicable entity considers
appropriate.
(c) REPORTS AND REGULATIONS.—
(1) REPORTS.—The Commissioner of Social Security shall
request the applicable entity, to submit an interim report and
a final report of the findings and recommendations resulting
from the study described in this section to the President and
the Congress not later than 18 months and 24 months, respec-
tively, from the date of the contract for such study, and such
additional reports as the Commissioner deems appropriate after
consultation with the applicable entity.
(2) REGULATIONS.—The Commissioner of Social Security
shall review both the interim and final reports, and shall issue
regulations implementing any necessary changes following each
report.
SEC. 233. STUDY BY GENERAL ACCOUNTING OFFICE.
Not later than January 1, 1998, the Comptroller General of
the United States shall study and report on—
(1) the impact of the amendments made by, and the provi-
sions of, this title on the supplemental security income program
under title XVI of the Social Security Act; and
(2) extra expenses incurred by families of children receiving
benefits under such title that are not covered by other Federal,
State, or local programs.
Subtitle E—National Commission on the
Future of Disability
SEC. 241. ESTABLISHMENT.
There is established a commission to be known as the National
Commission on the Future of Disability (referred to in this subtitle
as the ‘‘Commission’’).
H. R. 4—78
SEC. 242. DUTIES OF THE COMMISSION.
(a) IN GENERAL.—The Commission shall develop and carry
out a comprehensive study of all matters related to the nature,
purpose, and adequacy of all Federal programs serving individuals
with disabilities. In particular, the Commission shall study the
disability insurance program under title II of the Social Security
Act and the supplemental security income program under title
XVI of such Act.
(b) MATTERS STUDIED.—The Commission shall prepare an
inventory of Federal programs serving individuals with disabilities,
and shall examine—
(1) trends and projections regarding the size and character-
istics of the population of individuals with disabilities, and
the implications of such analyses for program planning;
(2) the feasibility and design of performance standards
for the Nation’s disability programs;
(3) the adequacy of Federal efforts in rehabilitation
research and training, and opportunities to improve the lives
of individuals with disabilities through all manners of scientific
and engineering research; and
(4) the adequacy of policy research available to the Federal
Government, and what actions might be undertaken to improve
the quality and scope of such research.
(c) RECOMMENDATIONS.—The Commission shall submit to the
appropriate committees of the Congress and to the President rec-
ommendations and, as appropriate, proposals for legislation, regard-
ing—
(1) which (if any) Federal disability programs should be
eliminated or augmented;
(2) what new Federal disability programs (if any) should
be established;
(3) the suitability of the organization and location of disabil-
ity programs within the Federal Government;
(4) other actions the Federal Government should take to
prevent disabilities and disadvantages associated with disabil-
ities; and
(5) such other matters as the Commission considers appro-
priate.
SEC. 243. MEMBERSHIP.
(a) NUMBER AND APPOINTMENT.—
(1) IN GENERAL.—The Commission shall be composed of
15 members, of whom—
(A) five shall be appointed by the President, of whom
not more than 3 shall be of the same major political party;
(B) three shall be appointed by the Majority Leader
of the Senate;
(C) two shall be appointed by the Minority Leader
of the Senate;
(D) three shall be appointed by the Speaker of the
House of Representatives; and
(E) two shall be appointed by the Minority Leader
of the House of Representatives.
(2) REPRESENTATION.—The Commission members shall be
chosen based on their education, training, or experience. In
appointing individuals as members of the Commission, the
President and the Majority and Minority Leaders of the Senate
H. R. 4—79
and the Speaker and Minority Leader of the House of Rep-
resentatives shall seek to ensure that the membership of the
Commission reflects the general interests of the business and
taxpaying community and the diversity of individuals with
disabilities in the United States.
(b) COMPTROLLER GENERAL.—The Comptroller General of the
United States shall advise the Commission on the methodology
and approach of the study of the Commission.
(c) TERM OF APPOINTMENT.—The members shall serve on the
Commission for the life of the Commission.
(d) MEETINGS.—The Commission shall locate its headquarters
in the District of Columbia, and shall meet at the call of the
Chairperson, but not less than 4 times each year during the life
of the Commission.
(e) QUORUM.—Ten members of the Commission shall constitute
a quorum, but a lesser number may hold hearings.
(f) CHAIRPERSON AND VICE CHAIRPERSON.—Not later than 15
days after the members of the Commission are appointed, such
members shall designate a Chairperson and Vice Chairperson from
among the members of the Commission.
(g) CONTINUATION
OF
MEMBERSHIP.—If a member of the
Commission becomes an officer or employee of any government
after appointment to the Commission, the individual may continue
as a member until a successor member is appointed.
(h) VACANCIES.—A vacancy on the Commission shall be filled
in the manner in which the original appointment was made not
later than 30 days after the Commission is given notice of the
vacancy.
(i) COMPENSATION.—Members of the Commission shall receive
no additional pay, allowances, or benefits by reason of their service
on the Commission.
(j) TRAVEL EXPENSES.—Each member of the Commission shall
receive travel expenses, including per diem in lieu of subsistence,
in accordance with sections 5702 and 5703 of title 5, United States
Code.
SEC. 244. STAFF AND SUPPORT SERVICES.
(a) DIRECTOR.—
(1) APPOINTMENT.—Upon consultation with the members
of the Commission, the Chairperson shall appoint a Director
of the Commission.
(2) COMPENSATION.—The Director shall be paid the rate
of basic pay for level V of the Executive Schedule.
(b) STAFF.—With the approval of the Commission, the Director
may appoint such personnel as the Director considers appropriate.
(c) APPLICABILITY OF CIVIL SERVICE LAWS.—The staff of the
Commission shall be appointed without regard to the provisions
of title 5, United States Code, governing appointments in the
competitive service, and shall be paid without regard to the provi-
sions of chapter 51 and subchapter III of chapter 53 of such title
relating to classification and General Schedule pay rates.
(d) EXPERTS
AND CONSULTANTS.—With the approval of the
Commission, the Director may procure temporary and intermittent
services under section 3109(b) of title 5, United States Code.
(e) STAFF OF FEDERAL AGENCIES.—Upon the request of the
Commission, the head of any Federal agency may detail, on a
reimbursable basis, any of the personnel of such agency to the
H. R. 4—80
Commission to assist in carrying out the duties of the Commission
under this subtitle.
(f) OTHER RESOURCES.—The Commission shall have reasonable
access to materials, resources, statistical data, and other informa-
tion from the Library of Congress and agencies and elected rep-
resentatives of the executive and legislative branches of the Federal
Government. The Chairperson of the Commission shall make
requests for such access in writing when necessary.
(g) PHYSICAL FACILITIES.—The Administrator of the General
Services Administration shall locate suitable office space for the
operation of the Commission. The facilities shall serve as the
headquarters of the Commission and shall include all necessary
equipment and incidentals required for proper functioning of the
Commission.
SEC. 245. POWERS OF COMMISSION.
(a) HEARINGS.—The Commission may conduct public hearings
or forums at the discretion of the Commission, at any time and
place the Commission is able to secure facilities and witnesses,
for the purpose of carrying out the duties of the Commission under
this subtitle.
(b) DELEGATION OF AUTHORITY.—Any member or agent of the
Commission may, if authorized by the Commission, take any action
the Commission is authorized to take by this section.
(c) INFORMATION.—The Commission may secure directly from
any Federal agency information necessary to enable the Commission
to carry out its duties under this subtitle. Upon request of the
Chairperson or Vice Chairperson of the Commission, the head of
a Federal agency shall furnish the information to the Commission
to the extent permitted by law.
(d) GIFTS, BEQUESTS, AND DEVISES.—The Commission may
accept, use, and dispose of gifts, bequests, or devises of services
or property, both real and personal, for the purpose of aiding
or facilitating the work of the Commission. Gifts, bequests, or
devises of money and proceeds from sales of other property received
as gifts, bequests, or devises shall be deposited in the Treasury
and shall be available for disbursement upon order of the Commis-
sion.
(e) MAILS.—The Commission may use the United States mails
in the same manner and under the same conditions as other Federal
agencies.
SEC. 246. REPORTS.
(a) INTERIM REPORT.—Not later than 1 year prior to the date
on which the Commission terminates pursuant to section 247, the
Commission shall submit an interim report to the President and
to the Congress. The interim report shall contain a detailed state-
ment of the findings and conclusions of the Commission, together
with the Commission’s recommendations for legislative and
administrative action, based on the activities of the Commission.
(b) FINAL REPORT.—Not later than the date on which the
Commission terminates, the Commission shall submit to the Con-
gress and to the President a final report containing—
(1) a detailed statement of final findings, conclusions, and
recommendations; and
(2) an assessment of the extent to which recommendations
of the Commission included in the interim report under sub-
section (a) have been implemented.
H. R. 4—81
(c) PRINTING AND PUBLIC DISTRIBUTION.—Upon receipt of each
report of the Commission under this section, the President shall—
(1) order the report to be printed; and
(2) make the report available to the public upon request.
SEC. 247. TERMINATION.
The Commission shall terminate on the date that is 2 years
after the date on which the members of the Commission have
met and designated a Chairperson and Vice Chairperson.
SEC. 248. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums as are
necessary to carry out the purposes of the Commission.
Subtitle F—Retirement Age Eligibility
SEC. 251. ELIGIBILITY FOR SUPPLEMENTAL SECURITY INCOME BENE-
FITS BASED ON SOCIAL SECURITY RETIREMENT AGE.
(a) 
IN
GENERAL.—Section 
1614(a)(1)(A) 
(42 
U.S.C.
1382C(a)(1)(A)) is amended by striking ‘‘is 65 years of age or older,’’
and inserting ‘‘has attained retirement age.’’.
(b) RETIREMENT AGE DEFINED.—Section 1614 (42 U.S.C. 1382c)
is amended by adding at the end the following new subsection:
‘‘Retirement Age
‘‘(g) For purposes of this title, the term ‘‘retirement age’’ has
the meaning given such term by section 216(l)(1).’’.
(c) CONFORMING
AMENDMENTS.—Sections 1601, 1612(b)(4),
1615(a)(1), and 1620(b)(2) (42 U.S.C. 1381, 1382a(b)(4), 1382d(a)(1),
and 1382i(b)(2)) are amended by striking ‘‘age 65’’ each place it
appears and inserting ‘‘retirement age’’.
(d) EFFECTIVE DATE.—The amendments made by this section
shall apply to applicants for benefits for months beginning after
September 30, 1995.
TITLE III—CHILD SUPPORT
SEC. 300. REFERENCE TO SOCIAL SECURITY ACT.
Except as otherwise specifically provided, where ever in this
title an amendment is expressed in terms of an amendment to
or repeal of a section or other provision, the reference shall be
considered to be made to that section or other provision of the
Social Security Act.
Subtitle A—Eligibility for Services;
Distribution of Payments
SEC. 301. STATE OBLIGATION TO PROVIDE CHILD SUPPORT ENFORCE-
MENT SERVICES.
(a) STATE PLAN REQUIREMENTS.—Section 454 (42 U.S.C. 654)
is amended—
(1) by striking paragraph (4) and inserting the following
new paragraph:
H. R. 4—82
‘‘(4) provide that the State will—
‘‘(A) provide services relating to the establishment of
paternity or the establishment, modification, or enforce-
ment of child support obligations, as appropriate, under
the plan with respect to—
‘‘(i) each child for whom (I) assistance is provided
under the State program funded under part A of this
title, (II) benefits or services for foster care mainte-
nance and adoption assistance are provided under the
State program funded under part B of this title, or
(III) medical assistance is provided under the State
plan approved under title XIX, unless the State agency
administering the plan determines (in accordance with
paragraph (29)) that it is against the best interests
of the child to do so; and
‘‘(ii) any other child, if an individual applies for
such services with respect to the child; and
‘‘(B) enforce any support obligation established with
respect to—
‘‘(i) a child with respect to whom the State provides
services under the plan; or
‘‘(ii) the custodial parent of such a child.’’; and
(2) in paragraph (6)—
(A) by striking ‘‘provide that’’ and inserting ‘‘provide
that—’’;
(B) by striking subparagraph (A) and inserting the
following new subparagraph:
‘‘(A) services under the plan shall be made available
to residents of other States on the same terms as to resi-
dents of the State submitting the plan;’’;
(C) in subparagraph (B), by inserting ‘‘on individuals
not receiving assistance under any State program funded
under part A’’ after ‘‘such services shall be imposed’’;
(D) in each of subparagraphs (B), (C), (D), and (E)—
(i) by indenting the subparagraph in the same
manner as, and aligning the left margin of the subpara-
graph with the left margin of, the matter inserted
by subparagraph (B) of this paragraph; and
(ii) by striking the final comma and inserting a
semicolon; and
(E) in subparagraph (E), by indenting each of clauses
(i) and (ii) 2 additional ems.
(b) CONTINUATION
OF SERVICES
FOR FAMILIES CEASING TO
RECEIVE ASSISTANCE UNDER THE STATE PROGRAM FUNDED UNDER
PART A.—Section 454 (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 paragraph (24)
and inserting ‘‘; and’’; and
(3) by adding after paragraph (24) the following new para-
graph:
‘‘(25) provide that if a family with respect to which services
are provided under the plan ceases to receive assistance under
the State program funded under part A, the State shall provide
appropriate notice to the family and continue to provide such
services, subject to the same conditions and on the same basis
as in the case of other individuals to whom services are fur-
nished under the plan, except that an application or other
H. R. 4—83
request to continue services shall not be required of such a
family and paragraph (6)(B) shall not apply to the family.’’.
(c) CONFORMING AMENDMENTS.—
(1) Section 452(b) (42 U.S.C. 652(b)) is amended by striking
‘‘454(6)’’ and inserting ‘‘454(4)’’.
(2) Section 452(g)(2)(A) (42 U.S.C. 652(g)(2)(A)) is amended
by striking ‘‘454(6)’’ each place it appears and inserting
‘‘454(4)(A)(ii)’’.
(3) Section 466(a)(3)(B) (42 U.S.C. 666(a)(3)(B)) is amended
by striking ‘‘in the case of overdue support which a State
has agreed to collect under section 454(6)’’ and inserting ‘‘in
any other case’’.
(4) Section 466(e) (42 U.S.C. 666(e)) is amended by striking
‘‘paragraph (4) or (6) of section 454’’ and inserting ‘‘section
454(4)’’.
SEC. 302. DISTRIBUTION OF CHILD SUPPORT COLLECTIONS.
(a) IN GENERAL.—Section 457 (42 U.S.C. 657) is amended to
read as follows:
‘‘SEC. 457. DISTRIBUTION OF COLLECTED SUPPORT.
‘‘(a) IN GENERAL.—An amount collected on behalf of a family
as support by a State pursuant to a plan approved under this
part shall be distributed as follows:
‘‘(1) FAMILIES
RECEIVING
ASSISTANCE.—In the case of a
family receiving assistance from the State, the State shall—
‘‘(A) pay to the Federal Government the Federal share
of the amount so collected; and
‘‘(B) retain, or distribute to the family, the State share
of the amount so collected.
‘‘(2) FAMILIES THAT FORMERLY RECEIVED ASSISTANCE.—In
the case of a family that formerly received assistance from
the State:
‘‘(A) CURRENT SUPPORT PAYMENTS.—To the extent that
the amount so collected does not exceed the amount
required to be paid to the family for the month in which
collected, the State shall distribute the amount so collected
to the family.
‘‘(B) PAYMENTS OF ARREARAGES.—To the extent that
the amount so collected exceeds the amount required to
be paid to the family for the month in which collected,
the State shall distribute the amount so collected as follows:
‘‘(i) DISTRIBUTION OF ARREARAGES THAT ACCRUED
AFTER THE FAMILY CEASED TO RECEIVE ASSISTANCE.—
‘‘(I) PRE-OCTOBER 1997.—The provisions of this
section (other than subsection (b)(1)) as in effect
and applied on the day before the date of the
enactment of section 302 of the Personal Respon-
sibility and Work Opportunity Act of 1995 shall
apply with respect to the distribution of support
arrearages that—
‘‘(aa) accrued after the family ceased to
receive assistance, and
‘‘(bb) are collected before October 1, 1997.
‘‘(II) POST-SEPTEMBER 1997.—With respect the
amount so collected on or after October 1, 1997,
or before such date, at the option of the State—
H. R. 4—84
‘‘(aa) IN GENERAL.—The State shall first
distribute the amount so collected (other than
any amount described in clause (iv)) to the
family to the extent necessary to satisfy any
support arrearages with respect to the family
that accrued after the family ceased to receive
assistance from the State.
‘‘(bb) REIMBURSEMENT
OF
GOVERNMENTS
FOR ASSISTANCE PROVIDED TO THE FAMILY.—
After the application of division (aa) and
clause (ii)(II)(aa) with respect to the amount
so collected, the State shall retain the State
share of the amount so collected, and pay to
the Federal Government the Federal share (as
defined in subsection (c)(2)(A)) of the amount
so collected, but only to the extent necessary
to reimburse amounts paid to the family as
assistance by the State.
‘‘(cc) DISTRIBUTION OF THE REMAINDER TO
THE FAMILY.—To the extent that neither divi-
sion (aa) nor division (bb) applies to the
amount so collected, the State shall distribute
the amount to the family.
‘‘(ii) DISTRIBUTION OF ARREARAGES THAT ACCRUED
BEFORE THE FAMILY RECEIVED ASSISTANCE.—
‘‘(I) PRE-OCTOBER 2000.—The provisions of this
section (other than subsection (b)(1)) as in effect
and applied on the day before the date of the
enactment of section 302 of the Personal Respon-
sibility and Work Opportunity Act of 1995 shall
apply with respect to the distribution of support
arrearages that—
‘‘(aa) accrued before the family received
assistance, and
‘‘(bb) are collected before October 1, 2000.
‘‘(II) POST-SEPTEMBER 2000.—Unless, based on
the report required by paragraph (4), the Congress
determines otherwise, with respect to the amount
so collected on or after October 1, 2000, or before
such date, at the option of the State—
‘‘(aa) IN GENERAL.—The State shall first
distribute the amount so collected (other than
any amount described in clause (iv)) to the
family to the extent necessary to satisfy any
support arrearages with respect to the family
that accrued before the family received assist-
ance from the State.
‘‘(bb) REIMBURSEMENT
OF
GOVERNMENTS
FOR ASSISTANCE PROVIDED TO THE FAMILY.—
After the application of clause (i)(II)(aa) and
division (aa) with respect to the amount so
collected, the State shall retain the State share
of the amount so collected, and pay to the
Federal Government the Federal share (as
defined in subsection (c)(2)) of the amount so
collected, but only to the extent necessary to
H. R. 4—85
reimburse of the amounts paid to the family
as assistance by the State.
‘‘(cc) DISTRIBUTION OF THE REMAINDER TO
THE FAMILY.—To the extent that neither divi-
sion (aa) nor division (bb) applies to the
amount so collected, the State shall distribute
the amount to the family.
‘‘(iii) DISTRIBUTION OF ARREARAGES THAT ACCRUED
WHILE THE FAMILY RECEIVED ASSISTANCE.—In the case
of a family described in this subparagraph, the provi-
sions of paragraph (1) shall apply with respect to the
distribution of support arrearages that accrued while
the family received assistance.
‘‘(iv) AMOUNTS COLLECTED PURSUANT TO SECTION
464.—Notwithstanding any other provision of this sec-
tion, any amount of support collected pursuant to sec-
tion 464 shall be retained by the State to the extent
necessary to reimburse amounts paid to the family
as assistance by the State. The State shall pay to
the Federal Government the Federal share of the
amounts so retained. To the extent the amount col-
lected pursuant to section 464 exceeds the amount
so retained, the State shall distribute the excess to
the family.
‘‘(v) ORDERING
RULES
FOR
DISTRIBUTIONS.—For
purposes of this subparagraph, the State shall treat
any support arrearages collected as accruing in the
following order:
‘‘(I) to the period after the family ceased to
receive assistance;
‘‘(II) to the period before the family received
assistance; and
‘‘(III) to the period while the family was receiv-
ing assistance.
‘‘(3) FAMILIES THAT NEVER RECEIVED ASSISTANCE.—In the
case of any other family, the State shall distribute the amount
so collected to the family.
‘‘(4) STUDY AND REPORT.—Not later than October 1, 1998,
the Secretary shall report to the Congress the Secretary’s find-
ings with respect to—
‘‘(A) whether the distribution of post-assistance arrear-
ages to families has been effective in moving people off
of welfare and keeping them off of welfare;
‘‘(B) whether early implementation of a pre-assistance
arrearage program by some states has been effective in
moving people off of welfare and keeping them off of wel-
fare;
‘‘(C) what the overall impact has been of the amend-
ments made by the Personal Responsibility and Work
Opportunity Act of 1995 with respect to child support
enforcement in moving people off of welfare and keeping
them off of welfare; and
‘‘(D) based on the information and data the Secretary
has obtained, what changes, if any, should be made in
the policies related to the distribution of child support
arrearages.
H. R. 4—86
‘‘(b) CONTINUATION OF ASSIGNMENTS.—Any rights to support
obligations, which were assigned to a State as a condition of receiv-
ing assistance from the State under part A and which were in
effect on the day before the date of the enactment of the Personal
Responsibility and Work Opportunity Act of 1995, shall remain
assigned after such date.
‘‘(c) DEFINITIONS.—As used in subsection (a):
‘‘(1) ASSISTANCE.—The term ‘assistance from the State’
means—
‘‘(A) assistance under the State program funded under
part A or under the State plan approved under part A
of this title (as in effect on the day before the date of
the enactment of the Personal Responsibility and Work
Opportunity Act of 1995); or
‘‘(B) benefits under the State plan approved under
part E of this title (as in effect on the day before the
date of the enactment of the Personal Responsibility and
Work Opportunity Act of 1995).
‘‘(2) FEDERAL SHARE.—The term ‘Federal share’ means that
portion of the amount collected resulting from the application
of the Federal medical percentage in effect for the fiscal year
in which the amount is collected.
‘‘(3) FEDERAL MEDICAL ASSISTANCE PERCENTAGE.—The term
‘Federal medical assistance percentage’ means—
‘‘(A) the Federal medical assistance percentage (as
defined in section 1118), in the case of Puerto Rico, the
Virgin Islands, Guam, and American Samoa; or
‘‘(B) the Federal medical assistance percentage (as
defined in section 1905(b)) in the case of any other State.
‘‘(4) STATE SHARE.—The term ‘State share’ means 100 per-
cent minus the Federal share.
‘‘(d) HOLD HARMLESS PROVISION.—If the amounts collected
which could be retained by the State in the fiscal year (to the
extent necessary to reimburse the State for amounts paid to families
as assistance by the State) are less than the State share of the
amounts collected in fiscal year 1995 (determined in accordance
with section 457 as in effect on the day before the date of the
enactment of the Personal Responsibility and Work Opportunity
Act of 1995), the State share for the fiscal year shall be an amount
equal to the State share in fiscal year 1995.’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 464(a)(1) (42 U.S.C. 664(a)(1)) is amended by
striking ‘‘section 457(b)(4) or (d)(3)’’ and inserting ‘‘section 457’’.
(2) Section 454 (42 U.S.C. 654) is amended—
(A) in paragraph (11)—
(i) by striking ‘‘(11)’’ and inserting ‘‘(11)(A)’’; and
(ii) by inserting after the semicolon ‘‘and’’; and
(B) by redesignating paragraph (12) as subparagraph
(B) of paragraph (11).
(c) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided in paragraph (2),
the amendments made by this section shall be effective on
October 1, 1996, or earlier at the State’s option.
(2) CONFORMING AMENDMENTS.—The amendments made by
subsection (b)(2) shall become effective on the date of the enact-
ment of this Act.
H. R. 4—87
SEC. 303. PRIVACY SAFEGUARDS.
(a) STATE PLAN REQUIREMENT.—Section 454 (42 U.S.C. 654),
as amended by section 301(b) of this Act, is amended—
(1) by striking ‘‘and’’ at the end of paragraph (24);
(2) by striking the period at the end of paragraph (25)
and inserting ‘‘; and’’; and
(3) by adding after paragraph (25) the following new para-
graph:
‘‘(26) will have in effect safeguards, applicable to all con-
fidential information handled by the State agency, that are
designed to protect the privacy rights of the parties, including—
‘‘(A) safeguards against unauthorized use or disclosure
of information relating to proceedings or actions to establish
paternity, or to establish or enforce support;
‘‘(B) prohibitions against the release of information
on the whereabouts of 1 party to another party against
whom a protective order with respect to the former party
has been entered; and
‘‘(C) prohibitions against the release of information
on the whereabouts of 1 party to another party if the
State has reason to believe that the release of the informa-
tion may result in physical or emotional harm to the former
party.’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall become effective on October 1, 1997.
SEC. 304. RIGHTS TO NOTIFICATION AND HEARINGS.
(a) IN GENERAL.—Section 454 (42 U.S.C. 654), as amended
by section 302(b)(2) of this Act, is amended by inserting after
paragraph (11) the following new paragraph:
‘‘(12) provide for the establishment of procedures to require
the State to provide individuals who are applying for or receiv-
ing services under the State plan, or who are parties to cases
in which services are being provided under the State plan—
‘‘(A) with notice of all proceedings in which support
obligations might be established or modified; and
‘‘(B) with a copy of any order establishing or modifying
a child support obligation, or (in the case of a petition
for modification) a notice of determination that there should
be no change in the amount of the child support award,
within 14 days after issuance of such order or determina-
tion;’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall become effective on October 1, 1997.
Subtitle B—Locate and Case Tracking
SEC. 311. STATE CASE REGISTRY.
Section 454A, as added by section 344(a)(2) of this Act, is
amended by adding at the end the following new subsections:
‘‘(e) STATE CASE REGISTRY.—
‘‘(1) CONTENTS.—The automated system required by this
section shall include a registry (which shall be known as the
‘State case registry’) that contains records with respect to—
H. R. 4—88
‘‘(A) each case in which services are being provided
by the State agency under the State plan approved under
this part; and
‘‘(B) each support order established or modified in the
State on or after October 1, 1998.
‘‘(2) LINKING OF LOCAL REGISTRIES.—The State case registry
may be established by linking local case registries of support
orders through an automated information network, subject to
this section.
‘‘(3) USE OF STANDARDIZED DATA ELEMENTS.—Such records
shall use standardized data elements for both parents (such
as names, social security numbers and other uniform identifica-
tion numbers, dates of birth, and case identification numbers),
and contain such other information (such as on-case status)
as the Secretary may require.
‘‘(4) PAYMENT
RECORDS.—Each case record in the State
case registry with respect to which services are being provided
under the State plan approved under this part and with respect
to which a support order has been established shall include
a record of—
‘‘(A) the amount of monthly (or other periodic) support
owed under the order, and other amounts (including arrear-
ages, interest or late payment penalties, and fees) due
or overdue under the order;
‘‘(B) any amount described in subparagraph (A) that
has been collected;
‘‘(C) the distribution of such collected amounts;
‘‘(D) the birth date of any child for whom the order
requires the provision of support; and
‘‘(E) the amount of any lien imposed with respect to
the order pursuant to section 466(a)(4).
‘‘(5) UPDATING AND MONITORING.—The State agency operat-
ing the automated system required by this section shall
promptly establish and maintain, and regularly monitor, case
records in the State case registry with respect to which services
are being provided under the State plan approved under this
part, on the basis of—
‘‘(A) 
information 
on 
administrative 
actions 
and
administrative and judicial proceedings and orders relating
to paternity and support;
‘‘(B) information obtained from comparison with Fed-
eral, State, or local sources of information;
‘‘(C) information on support collections and distribu-
tions; and
‘‘(D) any other relevant information.
‘‘(f) INFORMATION COMPARISONS AND OTHER DISCLOSURES OF
INFORMATION.—The State shall use the automated system required
by this section to extract information from (at such times, and
in such standardized format or formats, as may be required by
the Secretary), to share and compare information with, and to
receive information from, other data bases and information compari-
son services, in order to obtain (or provide) information necessary
to enable the State agency (or the Secretary or other State or
Federal agencies) to carry out this part, subject to section 6103
of the Internal Revenue Code of 1986. Such information comparison
activities shall include the following:
H. R. 4—89
‘‘(1) FEDERAL CASE REGISTRY OF CHILD SUPPORT ORDERS.—
Furnishing to the Federal Case Registry of Child Support
Orders established under section 453(h) (and update as nec-
essary, with information including notice of expiration of orders)
the minimum amount of information on child support cases
recorded in the State case registry that is necessary to operate
the registry (as specified by the Secretary in regulations).
‘‘(2) FEDERAL
PARENT
LOCATOR
SERVICE.—Exchanging
information with the Federal Parent Locator Service for the
purposes specified in section 453.
‘‘(3) TEMPORARY FAMILY ASSISTANCE AND MEDICAID AGEN-
CIES.—Exchanging information with State agencies (of the State
and of other States) administering programs funded under part
A, programs operated under State plans under title XIX, and
other programs designated by the Secretary, as necessary to
perform State agency responsibilities under this part and under
such programs.
‘‘(4) INTRASTATE AND INTERSTATE INFORMATION COMPARI-
SONS.—Exchanging information with other agencies of the
State, agencies of other States, and interstate information net-
works, as necessary and appropriate to carry out (or assist
other States to carry out) the purposes of this part.’’.
SEC. 312. COLLECTION AND DISBURSEMENT OF SUPPORT PAYMENTS.
(a) STATE PLAN REQUIREMENT.—Section 454 (42 U.S.C. 654),
as amended by sections 301(b) and 303(a) of this Act, is amended—
(1) by striking ‘‘and’’ at the end of paragraph (25);
(2) by striking the period at the end of paragraph (26)
and inserting ‘‘; and’’; and
(3) by adding after paragraph (26) the following new para-
graph:
‘‘(27) provide that, on and after October 1, 1998, the State
agency will—
‘‘(A) operate a State disbursement unit in accordance
with section 454B; and
‘‘(B) have sufficient State staff (consisting of State
employees) and (at State option) contractors reporting
directly to the State agency to—
‘‘(i) monitor and enforce support collections
through the unit in cases being enforced by the State
pursuant to section 454(4) (including carrying out the
automated data processing responsibilities described
in section 454A(g)); and
‘‘(ii) take the actions described in section 466(c)(1)
in appropriate cases.’’.
(b) ESTABLISHMENT OF STATE DISBURSEMENT UNIT.—Part D
of title IV (42 U.S.C. 651–669), as amended by section 344(a)(2)
of this Act, is amended by inserting after section 454A the following
new section:
‘‘SEC. 454B. COLLECTION AND DISBURSEMENT OF SUPPORT PAY-
MENTS.
‘‘(a) STATE DISBURSEMENT UNIT.—
‘‘(1) IN GENERAL.—In order for a State to meet the require-
ments of this section, the State agency must establish and
operate a unit (which shall be known as the ‘State disbursement
unit’) for the collection and disbursement of payments under
support orders—
H. R. 4—90
‘‘(A) in all cases being enforced by the State pursuant
to section 454(4); and
‘‘(B) in all cases not being enforced by the State under
this part in which the support order is initially issued
in the State on or after January 1, 1994, and in which
the wages of the absent parent are subject to withholding
pursuant to section 466(a)(8)(B).
‘‘(2) OPERATION.—The State disbursement unit shall be
operated—
‘‘(A) directly by the State agency (or 2 or more State
agencies under a regional cooperative agreement), or (to
the extent appropriate) by a contractor responsible directly
to the State agency; and
‘‘(B) except in cases described in paragraph (1)(B), in
coordination with the automated system established by
the State pursuant to section 454A.
‘‘(3) LINKING OF LOCAL DISBURSEMENT UNITS.—The State
disbursement unit may be established by linking local disburse-
ment units through an automated information network, subject
to this section, if the Secretary agrees that the system will
not cost more nor take more time to establish or operate than
a centralized system. In addition, employers shall be given
1 location to which income withholding is sent.
‘‘(b) REQUIRED PROCEDURES.—The State disbursement unit
shall use automated procedures, electronic processes, and computer-
driven technology to the maximum extent feasible, efficient, and
economical, for the collection and disbursement of support pay-
ments, including procedures—
‘‘(1) for receipt of payments from parents, employers, and
other States, and for disbursements to custodial parents and
other obligees, the State agency, and the agencies of other
States;
‘‘(2) for accurate identification of payments;
‘‘(3) to ensure prompt disbursement of the custodial parent’s
share of any payment; and
‘‘(4) to furnish to any parent, upon request, timely informa-
tion on the current status of support payments under an order
requiring payments to be made by or to the parent.
‘‘(c) TIMING OF DISBURSEMENTS.—
‘‘(1) IN GENERAL.—Except as provided in paragraph (2),
the State disbursement unit shall distribute all amounts pay-
able under section 457(a) within 2 business days after receipt
from the employer or other source of periodic income, if suffi-
cient information identifying the payee is provided.
‘‘(2) PERMISSIVE
RETENTION
OF
ARREARAGES.—The State
disbursement unit may delay the distribution of collections
toward arrearages until the resolution of any timely appeal
with respect to such arrearages.
‘‘(d) BUSINESS DAY DEFINED.—As used in this section, the term
‘business day’ means a day on which State offices are open for
regular business.’’.
(c) USE OF AUTOMATED SYSTEM.—Section 454A, as added by
section 344(a)(2) and as amended by section 311 of this Act, is
amended by adding at the end the following new subsection:
‘‘(g) COLLECTION AND DISTRIBUTION OF SUPPORT PAYMENTS.—
‘‘(1) IN GENERAL.—The State shall use the automated sys-
tem required by this section, to the maximum extent feasible,
H. R. 4—91
to assist and facilitate the collection and disbursement of sup-
port payments through the State disbursement unit operated
under section 454B, through the performance of functions,
including, at a minimum—
‘‘(A) transmission of orders and notices to employers
(and other debtors) for the withholding of wages and other
income—
‘‘(i) within 2 business days after receipt from a
court, another State, an employer, the Federal Parent
Locator Service, or another source recognized by the
State of notice of, and the income source subject to,
such withholding; and
‘‘(ii) using uniform formats prescribed by the Sec-
retary;
‘‘(B) ongoing monitoring to promptly identify failures
to make timely payment of support; and
‘‘(C) automatic use of enforcement procedures (includ-
ing procedures authorized pursuant to section 466(c)) if
payments are not timely made.
‘‘(2) BUSINESS DAY DEFINED.—As used in paragraph (1),
the term ‘business day’ means a day on which State offices
are open for regular business.’’.
(d) EFFECTIVE DATE.—The amendments made by this section
shall become effective on October 1, 1998.
SEC. 313. STATE DIRECTORY OF NEW HIRES.
(a) STATE PLAN REQUIREMENT.—Section 454 (42 U.S.C. 654),
as amended by sections 301(b), 303(a) and 312(a) of this Act, is
amended—
(1) by striking ‘‘and’’ at the end of paragraph (26);
(2) by striking the period at the end of paragraph (27)
and inserting ‘‘; and’’; and
(3) by adding after paragraph (27) the following new para-
graph:
‘‘(28) provide that, on and after October 1, 1997, the State
will operate a State Directory of New Hires in accordance
with section 453A.’’.
(b) STATE DIRECTORY OF NEW HIRES.—Part D of title IV (42
U.S.C. 651–669) is amended by inserting after section 453 the
following new section:
‘‘SEC. 453A. STATE DIRECTORY OF NEW HIRES.
‘‘(a) ESTABLISHMENT.—
‘‘(1) IN GENERAL.—
‘‘(A) REQUIREMENT FOR STATES THAT HAVE NO DIREC-
TORY.—Except as provided in subparagraph (B), not later
than October 1, 1997, each State shall establish an auto-
mated directory (to be known as the ‘State Directory of
New Hires’) which shall contain information supplied in
accordance with subsection (b) by employers on each newly
hired employee.
‘‘(B) STATES WITH NEW HIRE REPORTING IN EXISTENCE.—
A State which has a new hire reporting law in existence
on the date of the enactment of this section may continue
to operate under the State law, but the State must meet
the requirements of this section (other than subsection
(f)) not later than October 1, 1997.
‘‘(2) DEFINITIONS.—As used in this section:
H. R. 4—92
‘‘(A) EMPLOYEE.—The term ‘employee’—
‘‘(i) means an individual who is an employee within
the meaning of chapter 24 of the Internal Revenue
Code of 1986; and
‘‘(ii) does not include an employee of a Federal
or State agency performing intelligence or counterintel-
ligence functions, if the head of such agency has deter-
mined that reporting pursuant to paragraph (1) with
respect to the employee could endanger the safety of
the employee or compromise an ongoing investigation
or intelligence mission.
‘‘(B) EMPLOYER.—
‘‘(i) IN
GENERAL.—The term ‘employer’ has the
meaning given such term in section 3401(d) of the
Internal Revenue Code of 1996 and includes any
governmental entity and any labor organization.
‘‘(ii) 
LABOR
ORGANIZATION.—The 
term 
‘labor
organization’ shall have the meaning given such term
in section 2(5) of the National Labor Relations Act,
and includes any entity (also known as a ‘hiring hall’)
which is used by the organization and an employer
to carry out requirements described in section 8(f)(3)
of such Act of an agreement between the organization
and the employer.
‘‘(b) EMPLOYER INFORMATION.—
‘‘(1) REPORTING REQUIREMENT.—
‘‘(A) IN
GENERAL.—Except as provided in subpara-
graphs (B) and (C), each employer shall furnish to the
Directory of New Hires of the State in which a newly
hired employee works, a report that contains the name,
address, and social security number of the employee, and
the name and address of, and identifying number assigned
under section 6109 of the Internal Revenue Code of 1986
to, the employer.
‘‘(B) MULTISTATE EMPLOYERS.—An employer that has
employees who are employed in 2 or more States and
that transmits reports magnetically or electronically may
comply with subparagraph (A) by designating 1 State in
which such employer has employees to which the employer
will transmit the report described in subparagraph (A),
and transmitting such report to such State. Any employer
that transmits reports pursuant to this subparagraph shall
notify the Secretary in writing as to which State such
employer designates for the purpose of sending reports.
‘‘(C) FEDERAL GOVERNMENT EMPLOYERS.—Any depart-
ment, agency, or instrumentality of the United States shall
comply with subparagraph (A) by transmitting the report
described in subparagraph (A) to the National Directory
of New Hires established pursuant to section 453.
‘‘(2) TIMING OF REPORT.—Each State may provide the time
within which the report required by paragraph (1) shall be
made with respect to an employee, but such report shall be
made—
‘‘(A) not later than 20 days after the date the employer
hires the employee; or
‘‘(B) in the case of an employer transmitting reports
magnetically or electronically, by 2 monthly transmissions
H. R. 4—93
(if necessary) not less than 12 days nor more than 16
days apart.
‘‘(c) REPORTING FORMAT AND METHOD.—Each report required
by subsection (b) shall be made on a W–4 form or, at the option
of the employer, an equivalent form, and may be transmitted by
1st class mail, magnetically, or electronically.
‘‘(d) CIVIL MONEY PENALTIES ON NONCOMPLYING EMPLOYERS.—
The State shall have the option to set a State civil money penalty
which shall be less than—
‘‘(1) $25; or
‘‘(2) $500 if, under State law, the failure is the result
of a conspiracy between the employer and the employee to
not supply the required report or to supply a false or incomplete
report.
‘‘(e) ENTRY OF EMPLOYER INFORMATION.—Information shall be
entered into the data base maintained by the State Directory of
New Hires within 5 business days of receipt from an employer
pursuant to subsection (b).
‘‘(f) INFORMATION COMPARISONS.—
‘‘(1) IN GENERAL.—Not later than May 1, 1998, an agency
designated by the State shall, directly or by contract, conduct
automated comparisons of the social security numbers reported
by employers pursuant to subsection (b) and the social security
numbers appearing in the records of the State case registry
for cases being enforced under the State plan.
‘‘(2) NOTICE OF MATCH.—When an information comparison
conducted under paragraph (1) reveals a match with respect
to the social security number of an individual required to pro-
vide support under a support order, the State Directory of
New Hires shall provide the agency administering the State
plan approved under this part of the appropriate State with
the name, address, and social security number of the employee
to whom the social security number is assigned, and the name
of, and identifying number assigned under section 6109 of
the Internal Revenue Code of 1986 to the employer.
‘‘(g) TRANSMISSION OF INFORMATION.—
‘‘(1) TRANSMISSION
OF
WAGE
WITHHOLDING
NOTICES
TO
EMPLOYERS.—Within 2 business days after the date information
regarding a newly hired employee is entered into the State
Directory of New Hires, the State agency enforcing the employ-
ee’s child support obligation shall transmit a notice to the
employer of the employee directing the employer to withhold
from the wages of the employee an amount equal to the monthly
(or other periodic) child support obligation (including any past
due support obligation) of the employee, unless the employee’s
wages are not subject to withholding pursuant to section
466(b)(3).
‘‘(2) TRANSMISSIONS TO THE NATIONAL DIRECTORY OF NEW
HIRES.—
‘‘(A) NEW HIRE INFORMATION.—Within 3 business days
after the date information regarding a newly hired
employee is entered into the State Directory of New Hires,
the State Directory of New Hires shall furnish the informa-
tion to the National Directory of New Hires.
‘‘(B) 
WAGE
AND
UNEMPLOYMENT
COMPENSATION
INFORMATION.—The State Directory of New Hires shall,
on a quarterly basis, furnish to the National Directory
H. R. 4—94
of New Hires extracts of the reports required under section
303(a)(6) to be made to the Secretary of Labor concerning
the wages and unemployment compensation paid to individ-
uals, by such dates, in such format, and containing such
information as the Secretary of Health and Human Services
shall specify in regulations.
‘‘(3) BUSINESS DAY DEFINED.—As used in this subsection,
the term ‘business day’ means a day on which State offices
are open for regular business.
‘‘(h) OTHER USES OF NEW HIRE INFORMATION.—
‘‘(1) LOCATION OF CHILD SUPPORT OBLIGORS.—The agency
administering the State plan approved under this part shall
use information received pursuant to subsection (f)(2) to locate
individuals for purposes of establishing paternity and establish-
ing, modifying, and enforcing child support obligations.
‘‘(2) VERIFICATION OF ELIGIBILITY FOR CERTAIN PROGRAMS.—
A State agency responsible for administering a program speci-
fied in section 1137(b) shall have access to information reported
by employers pursuant to subsection (b) of this section for
purposes of verifying eligibility for the program.
‘‘(3) ADMINISTRATION OF EMPLOYMENT SECURITY AND WORK-
ERS’ COMPENSATION.—State agencies operating employment
security and workers’ compensation programs shall have access
to information reported by employers pursuant to subsection
(b) for the purposes of administering such programs.’’.
(c) QUARTERLY
WAGE
REPORTING.—Section 1137(a)(3) (42
U.S.C. 1320b–7(a)(3)) is amended—
(1) by inserting ‘‘(including State and local governmental
entities and labor organizations (as defined in section
453A(a)(2)(B)(iii))’’ after ‘‘employers’’; and
(2) by inserting ‘‘, and except that no report shall be filed
with respect to an employee of a State or local agency perform-
ing intelligence or counterintelligence functions, if the head
of such agency has determined that filing such a report could
endanger the safety of the employee or compromise an ongoing
investigation or intelligence mission’’ after ‘‘paragraph (2)’’.
SEC. 314. AMENDMENTS CONCERNING INCOME WITHHOLDING.
(a) MANDATORY INCOME WITHHOLDING.—
(1) IN
GENERAL.—Section 466(a)(1) (42 U.S.C. 666(a)(1))
is amended to read as follows:
‘‘(1)(A) Procedures described in subsection (b) for the
withholding from income of amounts payable as support in
cases subject to enforcement under the State plan.
‘‘(B) Procedures under which the wages of a person with
a support obligation imposed by a support order issued (or
modified) in the State before October 1, 1996, if not otherwise
subject to withholding under subsection (b), shall become sub-
ject to withholding as provided in subsection (b) if arrearages
occur, without the need for a judicial or administrative hear-
ing.’’.
(2) CONFORMING AMENDMENTS.—
(A) Section 466(b) (42 U.S.C. 666(b)) is amended in
the matter preceding paragraph (1), by striking ‘‘subsection
(a)(1)’’ and inserting ‘‘subsection (a)(1)(A)’’.
(B) Section 466(b)(4) (42 U.S.C. 666(b)(4)) is amended
to read as follows:
H. R. 4—95
‘‘(4)(A) Such withholding must be carried out in full compli-
ance with all procedural due process requirements of the State,
and the State must send notice to each noncustodial parent
to whom paragraph (1) applies—
‘‘(i) that the withholding has commenced; and
‘‘(ii) of the procedures to follow if the noncustodial
parent desires to contest such withholding on the grounds
that the withholding or the amount withheld is improper
due to a mistake of fact.
‘‘(B) The notice under subparagraph (A) of this paragraph
shall include the information provided to the employer under
paragraph (6)(A).’’.
(C) Section 466(b)(5) (42 U.S.C. 666(b)(5)) is amended
by striking all that follows ‘‘administered by’’ and inserting
‘‘the State through the State disbursement unit established
pursuant to section 454B, in accordance with the require-
ments of section 454B.’’.
(D) Section 466(b)(6)(A) (42 U.S.C. 666(b)(6)(A)) is
amended—
(i) in clause (i), by striking ‘‘to the appropriate
agency’’ and all that follows and inserting ‘‘to the State
disbursement unit within 2 business days after the
date the amount would (but for this subsection) have
been paid or credited to the employee, for distribution
in accordance with this part. The employer shall com-
ply with the procedural rules relating to income
withholding of the State in which the employee works,
regardless of the State where the notice originates.’’.
(ii) in clause (ii), by inserting ‘‘be in a standard
format prescribed by the Secretary, and’’ after ‘‘shall’’;
and
(iii) by adding at the end the following new clause:
‘‘(iii) As used in this subparagraph, the term ‘business
day’ means a day on which State offices are open for regular
business.’’.
(E) Section 466(b)(6)(D) (42 U.S.C. 666(b)(6)(D)) is
amended by striking ‘‘any employer’’ and all that follows
and inserting ‘‘any employer who—
‘‘(i) discharges from employment, refuses to employ,
or takes disciplinary action against any noncustodial parent
subject to wage withholding required by this subsection
because of the existence of such withholding and the obliga-
tions or additional obligations which it imposes upon the
employer; or
‘‘(ii) fails to withhold support from wages, or to pay
such amounts to the State disbursement unit in accordance
with this subsection.’’.
(F) Section 466(b) (42 U.S.C. 666(b)) is amended by
adding at the end the following new paragraph:
‘‘(11) Procedures under which the agency administering
the State plan approved under this part may execute a
withholding order without advance notice to the obligor, includ-
ing issuing the withholding order through electronic means.’’.
(b) CONFORMING AMENDMENT.—Section 466(c) (42 U.S.C. 666(c))
is repealed.
H. R. 4—96
SEC. 315. LOCATOR INFORMATION FROM INTERSTATE NETWORKS.
Section 466(a) (42 U.S.C. 666(a)) is amended by adding at
the end the following new paragraph:
‘‘(12) LOCATOR
INFORMATION
FROM
INTERSTATE
NET-
WORKS.—Procedures to ensure that all Federal and State agen-
cies conducting activities under this part have access to any
system used by the State to locate an individual for purposes
relating to motor vehicles or law enforcement.’’.
SEC. 316. EXPANSION OF THE FEDERAL PARENT LOCATOR SERVICE.
(a) EXPANDED
AUTHORITY
TO
LOCATE
INDIVIDUALS
AND
ASSETS.—Section 453 (42 U.S.C. 653) is amended—
(1) in subsection (a), by striking all that follows ‘‘subsection
(c))’’ and inserting ‘‘, for the purpose of establishing parentage,
establishing, setting the amount of, modifying, or enforcing
child support obligations, or enforcing child custody or visitation
orders—
‘‘(1) information on, or facilitating the discovery of, the
location of any individual—
‘‘(A) who is under an obligation to pay child support
or provide child custody or visitation rights;
‘‘(B) against whom such an obligation is sought;
‘‘(C) to whom such an obligation is owed,
including the individual’s social security number (or numbers),
most recent address, and the name, address, and employer
identification number of the individual’s employer;
‘‘(2) information on the individual’s wages (or other income)
from, and benefits of, employment (including rights to or enroll-
ment in group health care coverage); and
‘‘(3) information on the type, status, location, and amount
of any assets of, or debts owed by or to, any such individual.’’;
and
(2) in subsection (b)—
(A) in the matter preceding paragraph (1), by striking
‘‘social security’’ and all that follows through ‘‘absent par-
ent’’ and inserting ‘‘information described in subsection
(a)’’; and
(B) in the flush paragraph at the end, by adding the
following: ‘‘No information shall be disclosed to any person
if the State has notified the Secretary that the State has
reasonable evidence of domestic violence or child abuse
and the disclosure of such information could be harmful
to the custodial parent or the child of such parent. Informa-
tion received or transmitted pursuant to this section shall
be subject to the safeguard provisions contained in section
454(26).’’.
(b) AUTHORIZED PERSON FOR INFORMATION REGARDING VISITA-
TION RIGHTS.—Section 453(c) (42 U.S.C. 653(c)) is amended—
(1) in paragraph (1), by striking ‘‘support’’ and inserting
‘‘support or to seek to enforce orders providing child custody
or visitation rights’’; and
(2) in paragraph (2), by striking ‘‘, or any agent of such
court; and’’ and inserting ‘‘or to issue an order against a resident
parent for child custody or visitation rights, or any agent of
such court;’’.
(c) REIMBURSEMENT FOR INFORMATION FROM FEDERAL AGEN-
CIES.—Section 453(e)(2) (42 U.S.C. 653(e)(2)) is amended in the
H. R. 4—97
4th sentence by inserting ‘‘in an amount which the Secretary deter-
mines to be reasonable payment for the information exchange
(which amount shall not include payment for the costs of obtaining,
compiling, or maintaining the information)’’ before the period.
(d) REIMBURSEMENT FOR REPORTS BY STATE AGENCIES.—Section
453 (42 U.S.C. 653) is amended by adding at the end the following
new subsection:
‘‘(g) REIMBURSEMENT FOR REPORTS BY STATE AGENCIES.—The
Secretary may reimburse Federal and State agencies for the costs
incurred by such entities in furnishing information requested by
the Secretary under this section in an amount which the Secretary
determines to be reasonable payment for the information exchange
(which amount shall not include payment for the costs of obtaining,
compiling, or maintaining the information).’’.
(e) CONFORMING AMENDMENTS.—
(1) Sections 452(a)(9), 453(a), 453(b), 463(a), 463(e), and
463(f) (42 U.S.C. 652(a)(9), 653(a), 653(b), 663(a), 663(e), and
663(f)) are each amended by inserting ‘‘Federal’’ before ‘‘Parent’’
each place such term appears.
(2) Section 453 (42 U.S.C. 653) is amended in the heading
by adding ‘‘FEDERAL’’ before ‘‘PARENT’’.
(f) NEW COMPONENTS.—Section 453 (42 U.S.C. 653), as amend-
ed by subsection (d) of this section, is amended by adding at
the end the following new subsections:
‘‘(h) FEDERAL CASE REGISTRY OF CHILD SUPPORT ORDERS.—
‘‘(1) IN GENERAL.—Not later than October 1, 1998, in order
to assist States in administering programs under State plans
approved under this part and programs funded under part
A, and for the other purposes specified in this section, the
Secretary shall establish and maintain in the Federal Parent
Locator Service an automated registry (which shall be known
as the ‘Federal Case Registry of Child Support Orders’), which
shall contain abstracts of support orders and other information
described in paragraph (2) with respect to each case in each
State case registry maintained pursuant to section 454A(e),
as furnished (and regularly updated), pursuant to section
454A(f), by State agencies administering programs under this
part.
‘‘(2) CASE INFORMATION.—The information referred to in
paragraph (1) with respect to a case shall be such information
as the Secretary may specify in regulations (including the
names, social security numbers or other uniform identification
numbers, and State case identification numbers) to identify
the individuals who owe or are owed support (or with respect
to or on behalf of whom support obligations are sought to
be established), and the State or States which have the case.
‘‘(i) NATIONAL DIRECTORY OF NEW HIRES.—
‘‘(1) IN GENERAL.—In order to assist States in administering
programs under State plans approved under this part and
programs funded under part A, and for the other purposes
specified in this section, the Secretary shall, not later than
October 1, 1996, establish and maintain in the Federal Parent
Locator Service an automated directory to be known as the
National Directory of New Hires, which shall contain the
information supplied pursuant to section 453A(g)(2).
‘‘(2) ENTRY OF DATA.—Information shall be entered into
the data base maintained by the National Directory of New
H. R. 4—98
Hires within 2 business days of receipt pursuant to section
453A(g)(2).
‘‘(3) ADMINISTRATION OF FEDERAL TAX LAWS.—The Secretary
of the Treasury shall have access to the information in the
National Directory of New Hires for purposes of administering
section 32 of the Internal Revenue Code of 1986, or the advance
payment of the earned income tax credit under section 3507
of such Code, and verifying a claim with respect to employment
in a tax return.
‘‘(4) LIST OF MULTISTATE EMPLOYERS.—The Secretary shall
maintain within the National Directory of New Hires a list
of multistate employers that report information regarding
newly hired employees pursuant to section 453A(b)(1)(B), and
the State which each such employer has designated to receive
such information.
‘‘(j) INFORMATION COMPARISONS AND OTHER DISCLOSURES.—
‘‘(1) VERIFICATION BY SOCIAL SECURITY ADMINISTRATION.—
‘‘(A) IN
GENERAL.—The Secretary shall transmit
information on individuals and employers maintained
under this section to the Social Security Administration
to the extent necessary for verification in accordance with
subparagraph (B).
‘‘(B) VERIFICATION
BY
SSA.—The Social Security
Administration shall verify the accuracy of, correct, or sup-
ply to the extent possible, and report to the Secretary,
the following information supplied by the Secretary pursu-
ant to subparagraph (A):
‘‘(i) The name, social security number, and birth
date of each such individual.
‘‘(ii) The employer identification number of each
such employer.
‘‘(2) INFORMATION COMPARISONS.—For the purpose of locat-
ing individuals in a paternity establishment case or a case
involving the establishment, modification, or enforcement of
a support order, the Secretary shall—
‘‘(A) compare information in the National Directory
of New Hires against information in the support case
abstracts in the Federal Case Registry of Child Support
Orders not less often than every 2 business days; and
‘‘(B) within 2 such days after such a comparison reveals
a match with respect to an individual, report the informa-
tion to the State agency responsible for the case.
‘‘(3) INFORMATION
COMPARISONS
AND
DISCLOSURES
OF
INFORMATION IN ALL REGISTRIES FOR TITLE IV PROGRAM PUR-
POSES.—To the extent and with the frequency that the Sec-
retary determines to be effective in assisting States to carry
out their responsibilities under programs operated under this
part and programs funded under part A, the Secretary shall—
‘‘(A) compare the information in each component of
the Federal Parent Locator Service maintained under this
section against the information in each other such compo-
nent (other than the comparison required by paragraph
(2)), and report instances in which such a comparison
reveals a match with respect to an individual to State
agencies operating such programs; and
‘‘(B) disclose information in such registries to such
State agencies.
H. R. 4—99
‘‘(4) PROVISION OF NEW HIRE INFORMATION TO THE SOCIAL
SECURITY
ADMINISTRATION.—The National Directory of New
Hires shall provide the Commissioner of Social Security with
all information in the National Directory, which shall be used
to determine the accuracy of payments under the supplemental
security income program under title XVI and in connection
with benefits under title II.
‘‘(5) RESEARCH.—The Secretary may provide access to
information reported by employers pursuant to section 453A(b)
for research purposes found by the Secretary to be likely to
contribute to achieving the purposes of part A or this part,
but without personal identifiers.
‘‘(k) FEES.—
‘‘(1) FOR SSA VERIFICATION.—The Secretary shall reimburse
the Commissioner of Social Security, at a rate negotiated
between the Secretary and the Commissioner, for the costs
incurred by the Commissioner in performing the verification
services described in subsection (j).
‘‘(2) FOR INFORMATION FROM STATE DIRECTORIES OF NEW
HIRES.—The Secretary shall reimburse costs incurred by State
directories of new hires in furnishing information as required
by subsection (j)(3), at rates which the Secretary determines
to be reasonable (which rates shall not include payment for
the costs of obtaining, compiling, or maintaining such informa-
tion).
‘‘(3) FOR INFORMATION FURNISHED TO STATE AND FEDERAL
AGENCIES.—A State or Federal agency that receives information
from the Secretary pursuant to this section shall reimburse
the Secretary for costs incurred by the Secretary in furnishing
the information, at rates which the Secretary determines to
be reasonable (which rates shall include payment for the costs
of obtaining, verifying, maintaining, and comparing the
information).
‘‘(l) RESTRICTION ON DISCLOSURE AND USE.—Information in the
Federal Parent Locator Service, and information resulting from
comparisons using such information, shall not be used or disclosed
except as expressly provided in this section, subject to section
6103 of the Internal Revenue Code of 1986.
‘‘(m) INFORMATION INTEGRITY AND SECURITY.—The Secretary
shall establish and implement safeguards with respect to the enti-
ties established under this section designed to—
‘‘(1) ensure the accuracy and completeness of information
in the Federal Parent Locator Service; and
‘‘(2) restrict access to confidential information in the Fed-
eral Parent Locator Service to authorized persons, and restrict
use of such information to authorized purposes.
‘‘(n) FEDERAL GOVERNMENT REPORTING.—Each department,
agency, and instrumentality of the United States shall on a quar-
terly basis report to the Federal Parent Locator Service the name
and social security number of each employee and the wages paid
to the employee during the previous quarter, except that such
a report shall not be filed with respect to an employee of a depart-
ment, agency, or instrumentality performing intelligence or counter-
intelligence functions, if the head of such department, agency, or
instrumentality has determined that filing such a report could
endanger the safety of the employee or compromise an ongoing
investigation or intelligence mission.’’.
H. R. 4—100
(g) CONFORMING AMENDMENTS.—
(1) TO PART D OF TITLE IV OF THE SOCIAL SECURITY ACT.—
(A) Section 454(8)(B) (42 U.S.C. 654(8)(B)) is amended
to read as follows:
‘‘(B) the Federal Parent Locator Service established
under section 453;’’.
(B) Section 454(13) (42 U.S.C.654(13)) is amended by
inserting ‘‘and provide that information requests by parents
who are residents of other States be treated with the same
priority as requests by parents who are residents of the
State submitting the plan’’ before the semicolon.
(2) 
TO
FEDERAL
UNEMPLOYMENT
TAX
ACT.—Section
3304(a)(16) of the Internal Revenue Code of 1986 is amended—
(A) by striking ‘‘Secretary of Health, Education, and
Welfare’’ each place such term appears and inserting ‘‘Sec-
retary of Health and Human Services’’;
(B) in subparagraph (B), by striking ‘‘such information’’
and all that follows and inserting ‘‘information furnished
under subparagraph (A) or (B) is used only for the purposes
authorized under such subparagraph;’’;
(C) by striking ‘‘and’’ at the end of subparagraph (A);
(D) by redesignating subparagraph (B) as subpara-
graph (C); and
(E) by inserting after subparagraph (A) the following
new subparagraph:
‘‘(B) wage and unemployment compensation informa-
tion contained in the records of such agency shall be fur-
nished to the Secretary of Health and Human Services
(in accordance with regulations promulgated by such Sec-
retary) as necessary for the purposes of the National Direc-
tory of New Hires established under section 453(i) of the
Social Security Act, and’’.
(3) TO
STATE
GRANT
PROGRAM
UNDER
TITLE
III
OF
THE
SOCIAL SECURITY ACT.—Subsection (h) of section 303 (42 U.S.C.
503) is amended to read as follows:
‘‘(h)(1) The State agency charged with the administration of
the State law shall, on a reimbursable basis—
‘‘(A) disclose quarterly, to the Secretary of Health and
Human Services, wage and claim information, as required
pursuant to section 453(i)(1), contained in the records of such
agency;
‘‘(B) ensure that information provided pursuant to subpara-
graph (A) meets such standards relating to correctness and
verification as the Secretary of Health and Human Services,
with the concurrence of the Secretary of Labor, may find nec-
essary; and
‘‘(C) establish such safeguards as the Secretary of Labor
determines are necessary to insure that information disclosed
under subparagraph (A) is used only for purposes of section
453(i)(1) in carrying out the child support enforcement program
under title IV.
‘‘(2) Whenever the Secretary of Labor, after reasonable notice
and opportunity for hearing to the State agency charged with the
administration of the State law, finds that there is a failure to
comply substantially with the requirements of paragraph (1), the
Secretary of Labor shall notify such State agency that further
payments will not be made to the State until the Secretary of
H. R. 4—101
Labor is satisfied that there is no longer any such failure. Until
the Secretary of Labor is so satisfied, the Secretary shall make
no future certification to the Secretary of the Treasury with respect
to the State.
‘‘(3) For purposes of this subsection—
‘‘(A) the term ‘wage information’ means information regard-
ing wages paid to an individual, the social security account
number of such individual, and the name, address, State, and
the Federal employer identification number of the employer
paying such wages to such individual; and
‘‘(B) the term ‘claim information’ means information regard-
ing whether an individual is receiving, has received, or has
made application for, unemployment compensation, the amount
of any such compensation being received (or to be received
by such individual), and the individual’s current (or most
recent) home address.’’.
(4) DISCLOSURE OF CERTAIN INFORMATION TO AGENTS OF
CHILD SUPPORT ENFORCEMENT AGENCIES.—
(A) IN GENERAL.—Paragraph (6) of section 6103(l) of
the Internal Revenue Code of 1986 (relating to disclosure
of return information to Federal, State, and local child
support enforcement agencies) is amended by redesignating
subparagraph (B) as subparagraph (C) and by inserting
after subparagraph (A) the following new subparagraph:
‘‘(B) DISCLOSURE TO CERTAIN AGENTS.—The following
information disclosed to any child support enforcement
agency under subparagraph (A) with respect to any individ-
ual with respect to whom child support obligations are
sought to be established or enforced may be disclosed by
such agency to any agent of such agency which is under
contract with such agency to carry out the purposes
described in subparagraph (C):
‘‘(i) The address and social security account num-
ber (or numbers) of such individual.
‘‘(ii) The amount of any reduction under section
6402(c) (relating to offset of past-due support against
overpayments) in any overpayment otherwise payable
to such individual.’’
(B) CONFORMING AMENDMENTS.—
(i) Paragraph (3) of section 6103(a) of such Code
is amended by striking ‘‘(l)(12)’’ and inserting ‘‘para-
graph (6) or (12) of subsection (l)’’.
(ii) Subparagraph (C) of section 6103(l)(6) of such
Code, as redesignated by subsection (a), is amended
to read as follows:
‘‘(C) RESTRICTION ON DISCLOSURE.—Information may
be disclosed under this paragraph only for purposes of,
and to the extent necessary in, establishing and collecting
child support obligations from, and locating, individuals
owing such obligations.’’
(iii) The material following subparagraph (F) of
section 6103(p)(4) of such Code is amended by striking
‘‘subsection (l)(12)(B)’’ and inserting ‘‘paragraph (6)(A)
or (12)(B) of subsection (l)’’.
H. R. 4—102
SEC. 317. COLLECTION AND USE OF SOCIAL SECURITY NUMBERS FOR
USE IN CHILD SUPPORT ENFORCEMENT.
(a) STATE
LAW
REQUIREMENT.—Section 466(a) (42 U.S.C.
666(a)), as amended by section 315 of this Act, is amended by
adding at the end the following new paragraph:
‘‘(13) RECORDING OF SOCIAL SECURITY NUMBERS IN CERTAIN
FAMILY MATTERS.—Procedures requiring that the social security
number of—
‘‘(A) any applicant for a professional license, commer-
cial driver’s license, occupational license, or marriage
license be recorded on the application;
‘‘(B) any individual who is subject to a divorce decree,
support order, or paternity determination or acknowledg-
ment be placed in the records relating to the matter; and
‘‘(C) any individual who has died be placed in the
records relating to the death and be recorded on the death
certificate.
For purposes of subparagraph (A), if a State allows the use
of a number other than the social security number, the State
shall so advise any applicants.’’.
(b) CONFORMING AMENDMENTS.—Section 205(c)(2)(C) (42 U.S.C.
405(c)(2)(C)), as amended by section 321(a)(9) of the Social Security
Independence and Program Improvements Act of 1994, is
amended—
(1) in clause (i), by striking ‘‘may require’’ and inserting
‘‘shall require’’;
(2) in clause (ii), by inserting after the 1st sentence the
following: ‘‘In the administration of any law involving the issu-
ance of a marriage certificate or license, each State shall require
each party named in the certificate or license to furnish to
the State (or political subdivision thereof), or any State agency
having administrative responsibility for the law involved, the
social security number of the party.’’;
(3) in clause (ii), by inserting ‘‘or marriage certificate’’ after
‘‘Such numbers shall not be recorded on the birth certificate’’.
(4) in clause (vi), by striking ‘‘may’’ and inserting ‘‘shall’’;
and
(5) by adding at the end the following new clauses:
‘‘(x) An agency of a State (or a political subdivision
thereof) charged with the administration of any law
concerning the issuance or renewal of a license, certifi-
cate, permit, or other authorization to engage in a
profession, an occupation, or a commercial activity
shall require all applicants for issuance or renewal
of the license, certificate, permit, or other authorization
to provide the applicant’s social security number to
the agency for the purpose of administering such laws,
and for the purpose of responding to requests for
information from an agency operating pursuant to part
D of title IV.
‘‘(xi) All divorce decrees, support orders, and pater-
nity determinations issued, and all paternity acknowl-
edgments made, in each State shall include the social
security number of each party to the decree, order,
determination, or acknowledgment in the records relat-
ing to the matter, for the purpose of responding to
H. R. 4—103
requests for information from an agency operating
pursuant to part D of title IV.’’.
Subtitle C—Streamlining and Uniformity
of Procedures
SEC. 321. ADOPTION OF UNIFORM STATE LAWS.
Section 466 (42 U.S.C. 666) is amended by adding at the end
the following new subsection:
‘‘(f) UNIFORM INTERSTATE FAMILY SUPPORT ACT.—
‘‘(1) ENACTMENT
AND
USE.—In order to satisfy section
454(20)(A), on and after January 1, 1998, each State must
have in effect the Uniform Interstate Family Support Act, as
approved by the American Bar Association on February 9,
1993, together with any amendments officially adopted before
January 1, 1998 by the National Conference of Commissioners
on Uniform State Laws.
‘‘(2) EMPLOYERS TO FOLLOW PROCEDURAL RULES OF STATE
WHERE
EMPLOYEE
WORKS.—The State law enacted pursuant
to paragraph (1) shall provide that an employer that receives
an income withholding order or notice pursuant to section 501
of the Uniform Interstate Family Support Act follow the proce-
dural rules that apply with respect to such order or notice
under the laws of the State in which the obligor works.
SEC. 322. IMPROVEMENTS TO FULL FAITH AND CREDIT FOR CHILD
SUPPORT ORDERS.
Section 1738B of title 28, United States Code, is amended—
(1) in subsection (a)(2), by striking ‘‘subsection (e)’’ and
inserting ‘‘subsections (e), (f), and (i)’’;
(2) in subsection (b), by inserting after the 2nd undesig-
nated paragraph the following:
‘‘ ‘child’s home State’ means the State in which a child
lived with a parent or a person acting as parent for at least
6 consecutive months immediately preceding the time of filing
of a petition or comparable pleading for support and, if a
child is less than 6 months old, the State in which the child
lived from birth with any of them. A period of temporary
absence of any of them is counted as part of the 6-month
period.’’;
(3) in subsection (c), by inserting ‘‘by a court of a State’’
before ‘‘is made’’;
(4) in subsection (c)(1), by inserting ‘‘and subsections (e),
(f), and (g)’’ after ‘‘located’’;
(5) in subsection (d)—
(A) by inserting ‘‘individual’’ before ‘‘contestant’’; and
(B) by striking ‘‘subsection (e)’’ and inserting ‘‘sub-
sections (e) and (f)’’;
(6) in subsection (e), by striking ‘‘make a modification of
a child support order with respect to a child that is made’’
and inserting ‘‘modify a child support order issued’’;
(7) in subsection (e)(1), by inserting ‘‘pursuant to subsection
(i)’’ before the semicolon;
(8) in subsection (e)(2)—
(A) by inserting ‘‘individual’’ before ‘‘contestant’’ each
place such term appears; and
H. R. 4—104
(B) by striking ‘‘to that court’s making the modification
and assuming’’ and inserting ‘‘with the State of continuing,
exclusive jurisdiction for a court of another State to modify
the order and assume’’;
(9) by redesignating subsections (f) and (g) as subsections
(g) and (h), respectively;
(10) by inserting after subsection (e) the following new
subsection:
‘‘(f) RECOGNITION OF CHILD SUPPORT ORDERS.—If 1 or more
child support orders have been issued in this or another State
with regard to an obligor and a child, a court shall apply the
following rules in determining which order to recognize for purposes
of continuing, exclusive jurisdiction and enforcement:
‘‘(1) If only 1 court has issued a child support order, the
order of that court must be recognized.
‘‘(2) If 2 or more courts have issued child support orders
for the same obligor and child, and only 1 of the courts would
have continuing, exclusive jurisdiction under this section, the
order of that court must be recognized.
‘‘(3) If 2 or more courts have issued child support orders
for the same obligor and child, and more than 1 of the courts
would have continuing, exclusive jurisdiction under this section,
an order issued by a court in the current home State of the
child must be recognized, but if an order has not been issued
in the current home State of the child, the order most recently
issued must be recognized.
‘‘(4) If 2 or more courts have issued child support orders
for the same obligor and child, and none of the courts would
have continuing, exclusive jurisdiction under this section, a
court may issue a child support order, which must be
recognized.
‘‘(5) The court that has issued an order recognized under
this subsection is the court having continuing, exclusive juris-
diction.’’;
(11) in subsection (g) (as so redesignated)—
(A) by striking ‘‘PRIOR’’ and inserting ‘‘MODIFIED’’; and
(B) by striking ‘‘subsection (e)’’ and inserting ‘‘sub-
sections (e) and (f)’’;
(12) in subsection (h) (as so redesignated)—
(A) in paragraph (2), by inserting ‘‘including the dura-
tion of current payments and other obligations of support’’
before the comma; and
(B) in paragraph (3), by inserting ‘‘arrears under’’ after
‘‘enforce’’; and
(13) by adding at the end the following new subsection:
‘‘(i) REGISTRATION FOR MODIFICATION.—If there is no individual
contestant or child residing in the issuing State, the party or
support enforcement agency seeking to modify, or to modify and
enforce, a child support order issued in another State shall register
that order in a State with jurisdiction over the nonmovant for
the purpose of modification.’’.
SEC. 323. ADMINISTRATIVE ENFORCEMENT IN INTERSTATE CASES.
Section 466(a) (42 U.S.C. 666(a)), as amended by sections 315
and 317(a) of this Act, is amended by adding at the end the
following new paragraph:
H. R. 4—105
‘‘(14) 
ADMINISTRATIVE
ENFORCEMENT
IN
INTERSTATE
CASES.—Procedures under which—
‘‘(A)(i) the State shall respond within 5 business days
to a request made by another State to enforce a support
order; and
‘‘(ii) the term ‘business day’ means a day on which
State offices are open for regular business;
‘‘(B) the State may, by electronic or other means, trans-
mit to another State a request for assistance in a case
involving the enforcement of a support order, which
request—
‘‘(i) shall include such information as will enable
the State to which the request is transmitted to com-
pare the information about the case to the information
in the data bases of the State; and
‘‘(ii) shall constitute a certification by the request-
ing State—
‘‘(I) of the amount of support under the order
the payment of which is in arrears; and
‘‘(II) that the requesting State has complied
with all procedural due process requirements
applicable to the case;
‘‘(C) if the State provides assistance to another State
pursuant to this paragraph with respect to a case, neither
State shall consider the case to be transferred to the case-
load of such other State; and
‘‘(D) the State shall maintain records of—
‘‘(i) the number of such requests for assistance
received by the State;
‘‘(ii) the number of cases for which the State col-
lected support in response to such a request; and
‘‘(iii) the amount of such collected support.’’.
SEC. 324. USE OF FORMS IN INTERSTATE ENFORCEMENT.
(a) PROMULGATION.—Section 452(a) (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 paragraph (10)
and inserting ‘‘; and’’; and
(3) by adding at the end the following new paragraph:
‘‘(11) not later than June 30, 1996, after consulting with
the State directors of programs under this part, promulgate
forms to be used by States in interstate cases for—
‘‘(A) collection of child support through income
withholding;
‘‘(B) imposition of liens; and
‘‘(C) administrative subpoenas.’’.
(b) USE
BY STATES.—Section 454(9) (42 U.S.C. 654(9)) is
amended—
(1) by striking ‘‘and’’ at the end of subparagraph (C);
(2) by inserting ‘‘and’’ at the end of subparagraph (D);
and
(3) by adding at the end the following new subparagraph:
‘‘(E) no later than October 1, 1996, in using the forms
promulgated pursuant to section 452(a)(11) for income
withholding, imposition of liens, and issuance of adminis-
trative subpoenas in interstate child support cases;’’.
H. R. 4—106
SEC. 325. STATE LAWS PROVIDING EXPEDITED PROCEDURES.
(a) STATE LAW REQUIREMENTS.—Section 466 (42 U.S.C. 666),
as amended by section 314 of this Act, is amended—
(1) in subsection (a)(2), by striking the first sentence and
inserting the following: ‘‘Expedited administrative and judicial
procedures (including the procedures specified in subsection
(c)) for establishing paternity and for establishing, modifying,
and enforcing support obligations.’’; and
(2) by inserting after subsection (b) the following new
subsection:
‘‘(c) EXPEDITED PROCEDURES.—The procedures specified in this
subsection are the following:
‘‘(1) ADMINISTRATIVE ACTION BY STATE AGENCY.—Procedures
which give the State agency the authority to take the following
actions relating to establishment or enforcement of support
orders, without the necessity of obtaining an order from any
other judicial or administrative tribunal, and to recognize and
enforce the authority of State agencies of other States) to take
the following actions:
‘‘(A) GENETIC TESTING.—To order genetic testing for
the purpose of paternity establishment as provided in sec-
tion 466(a)(5).
‘‘(B) FINANCIAL OR OTHER INFORMATION.—To subpoena
any financial or other information needed to establish,
modify, or enforce a support order, and to impose penalties
for failure to respond to such a subpoena.
‘‘(C) RESPONSE TO STATE AGENCY REQUEST.—To require
all entities in the State (including for-profit, nonprofit,
and governmental employers) to provide promptly, in
response to a request by the State agency of that or any
other State administering a program under this part,
information on the employment, compensation, and benefits
of any individual employed by such entity as an employee
or contractor, and to sanction failure to respond to any
such request.
‘‘(D) ACCESS TO CERTAIN RECORDS.—To obtain access,
subject to safeguards on privacy and information security,
to the following records (including automated access, in
the case of records maintained in automated data bases):
‘‘(i) Records of other State and local government
agencies, including—
‘‘(I) vital statistics (including records of mar-
riage, birth, and divorce);
‘‘(II) State and local tax and revenue records
(including 
information 
on 
residence 
address,
employer, income and assets);
‘‘(III) records concerning real and titled per-
sonal property;
‘‘(IV) records of occupational and professional
licenses, and records concerning the ownership and
control of corporations, partnerships, and other
business entities;
‘‘(V) employment security records;
‘‘(VI) records of agencies administering public
assistance programs;
‘‘(VII) records of the motor vehicle department;
and
H. R. 4—107
‘‘(VIII) corrections records.
‘‘(ii) Certain records held by private entities,
including—
‘‘(I) customer records of public utilities and
cable television companies; and
‘‘(II) information (including information on
assets and liabilities) on individuals who owe or
are owed support (or against or with respect to
whom a support obligation is sought) held by finan-
cial institutions (subject to limitations on liability
of such entities arising from affording such access),
as provided pursuant to agreements described in
subsection (a)(18).
‘‘(E) CHANGE
IN
PAYEE.—In cases in which support
is subject to an assignment in order to comply with a
requirement imposed pursuant to part A or section 1912,
or to a requirement to pay through the State disbursement
unit established pursuant to section 454B, upon providing
notice to obligor and obligee, to direct the obligor or other
payor to change the payee to the appropriate government
entity.
‘‘(F) INCOME WITHHOLDING.—To order income withhold-
ing in accordance with subsections (a)(1) and (b) of section
466.
‘‘(G) SECURING
ASSETS.—In cases in which there is
a support arrearage, to secure assets to satisfy the arrear-
age by—
‘‘(i) intercepting or seizing periodic or lump-sum
payments from—
‘‘(I) a State or local agency, including
unemployment compensation, workers’ compensa-
tion, and other benefits; and
‘‘(II) judgments, settlements, and lotteries;
‘‘(ii) attaching and seizing assets of the obligor
held in financial institutions;
‘‘(iii) attaching public and private retirement funds;
and
‘‘(iv) imposing liens in accordance with subsection
(a)(4) and, in appropriate cases, to force sale of property
and distribution of proceeds.
‘‘(H) INCREASE MONTHLY PAYMENTS.—For the purpose
of securing overdue support, to increase the amount of
monthly support payments to include amounts for arrear-
ages, subject to such conditions or limitations as the State
may provide.
Such procedures shall be subject to due process safeguards,
including (as appropriate) requirements for notice, opportunity
to contest the action, and opportunity for an appeal on the
record to an independent administrative or judicial tribunal.
‘‘(2) SUBSTANTIVE AND PROCEDURAL RULES.—The expedited
procedures required under subsection (a)(2) shall include the
following rules and authority, applicable with respect to all
proceedings to establish paternity or to establish, modify, or
enforce support orders:
‘‘(A) LOCATOR INFORMATION; PRESUMPTIONS CONCERN-
ING NOTICE.—Procedures under which—
H. R. 4—108
‘‘(i) each party to any paternity or child support
proceeding is required (subject to privacy safeguards)
to file with the tribunal and the State case registry
upon entry of an order, and to update as appropriate,
information on location and identity of the party,
including social security number, residential and mail-
ing addresses, telephone number, driver’s license num-
ber, and name, address, and name and telephone
number of employer; and
‘‘(ii) in any subsequent child support enforcement
action between the parties, upon sufficient showing
that diligent effort has been made to ascertain the
location of such a party, the tribunal may deem State
due process requirements for notice and service of proc-
ess to be met with respect to the party, upon delivery
of written notice to the most recent residential or em-
ployer address filed with the tribunal pursuant to
clause (i).
‘‘(B) 
STATEWIDE
JURISDICTION.—Procedures 
under
which—
‘‘(i) the State agency and any administrative or
judicial tribunal with authority to hear child support
and paternity cases exerts statewide jurisdiction over
the parties; and
‘‘(ii) in a State in which orders are issued by courts
or administrative tribunals, a case may be transferred
between local jurisdictions in the State without need
for any additional filing by the petitioner, or service
of process upon the respondent, to retain jurisdiction
over the parties.
‘‘(3) COORDINATION
WITH
ERISA.—Notwithstanding sub-
section (d) of section 514 of the Employee Retirement Income
Security Act of 1974 (relating to effect on other laws), nothing
in this subsection shall be construed to alter, amend, modify,
invalidate, impair, or supersede subsections (a), (b), and (c)
of such section 514 as it applies with respect to any procedure
referred to in paragraph (1) and any expedited procedure
referred to in paragraph (2), except to the extent that such
procedure would be consistent with the requirements of section
206(d)(3) of such Act (relating to qualified domestic relations
orders) or the requirements of section 609(a) of such Act (relat-
ing to qualified medical child support orders) if the reference
in such section 206(d)(3) to a domestic relations order and
the reference in such section 609(a) to a medical child support
order were a reference to a support order referred to in para-
graphs (1) and (2) relating to the same matters, respectively.’’.
(b) AUTOMATION OF STATE AGENCY FUNCTIONS.—Section 454A,
as added by section 344(a)(2) and as amended by sections 311
and 312(c) of this Act, is amended by adding at the end the following
new subsection:
‘‘(h) EXPEDITED ADMINISTRATIVE PROCEDURES.—The automated
system required by this section shall be used, to the maximum
extent feasible, to implement the expedited administrative proce-
dures required by section 466(c).’’.
H. R. 4—109
Subtitle D—Paternity Establishment
SEC. 331. STATE LAWS CONCERNING PATERNITY ESTABLISHMENT.
(a) STATE
LAWS
REQUIRED.—Section 466(a)(5) (42 U.S.C.
666(a)(5)) is amended to read as follows:
‘‘(5) 
PROCEDURES
CONCERNING
PATERNITY
ESTABLISH-
MENT.—
‘‘(A) ESTABLISHMENT PROCESS AVAILABLE FROM BIRTH
UNTIL AGE 18.—
‘‘(i) Procedures which permit the establishment of
the paternity of a child at any time before the child
attains 18 years of age.
‘‘(ii) As of August 16, 1984, clause (i) shall also
apply to a child for whom paternity has not been
established or for whom a paternity action was brought
but dismissed because a statute of limitations of less
than 18 years was then in effect in the State.
‘‘(B) PROCEDURES CONCERNING GENETIC TESTING.—
‘‘(i) GENETIC TESTING REQUIRED IN CERTAIN CON-
TESTED CASES.—Procedures under which the State is
required, in a contested paternity case (unless other-
wise barred by State law) to require the child and
all other parties (other than individuals found under
section 454(29) to have good cause for refusing to
cooperate) to submit to genetic tests upon the request
of any such party, if the request is supported by a
sworn statement by the party—
‘‘(I) alleging paternity, and setting forth facts
establishing a reasonable possibility of the req-
uisite sexual contact between the parties; or
‘‘(II) denying paternity, and setting forth facts
establishing 
a 
reasonable 
possibility 
of 
the
nonexistence of sexual contact between the parties.
‘‘(ii) OTHER
REQUIREMENTS.—Procedures which
require the State agency, in any case in which the
agency orders genetic testing—
‘‘(I) to pay costs of such tests, subject to
recoupment (if the State so elects) from the alleged
father if paternity is established; and
‘‘(II) to obtain additional testing in any case
if an original test result is contested, upon request
and advance payment by the contestant.
‘‘(C) VOLUNTARY PATERNITY ACKNOWLEDGMENT.—
‘‘(i) SIMPLE CIVIL PROCESS.—Procedures for a sim-
ple civil process for voluntarily acknowledging pater-
nity under which the State must provide that, before
a mother and a putative father can sign an acknowledg-
ment of paternity, the mother and the putative father
must be given notice, orally and in writing, of the
alternatives to, the legal consequences of, and the
rights (including, if 1 parent is a minor, any rights
afforded due to minority status) and responsibilities
that arise from, signing the acknowledgment.
‘‘(ii) HOSPITAL-BASED PROGRAM.—Such procedures
must include a hospital-based program for the vol-
untary acknowledgment of paternity focusing on the
H. R. 4—110
period immediately before or after the birth of a child,
subject to such good cause exceptions, taking into
account the best interests of the child, as the State
may establish.
‘‘(iii) PATERNITY ESTABLISHMENT SERVICES.—
‘‘(I) STATE-OFFERED
SERVICES.—Such proce-
dures must require the State agency responsible
for maintaining birth records to offer voluntary
paternity establishment services.
‘‘(II) REGULATIONS.—
‘‘(aa) SERVICES OFFERED BY HOSPITALS AND
BIRTH RECORD AGENCIES.—The Secretary shall
prescribe regulations governing voluntary
paternity establishment services offered by
hospitals and birth record agencies.
‘‘(bb) SERVICES OFFERED BY OTHER ENTI-
TIES.—The Secretary shall prescribe regula-
tions specifying the types of other entities that
may offer voluntary paternity establishment
services, and governing the provision of such
services, which shall include a requirement
that such an entity must use the same notice
provisions used by, use the same materials
used by, provide the personnel providing such
services with the same training provided by,
and evaluate the provision of such services
in the same manner as the provision of such
services is evaluated by, voluntary paternity
establishment programs of hospitals and birth
record agencies.
‘‘(iv) USE OF PATERNITY ACKNOWLEDGMENT AFFIDA-
VIT.—Such procedures must require the State to
develop and use an affidavit for the voluntary acknowl-
edgment of paternity which includes the minimum
requirements of the affidavit developed by the Sec-
retary under section 452(a)(7) for the voluntary
acknowledgment of paternity, and to give full faith
and credit to such an affidavit signed in any other
State according to its procedures.
‘‘(D) STATUS
OF
SIGNED
PATERNITY
ACKNOWLEDG-
MENT.—
‘‘(i) INCLUSION
IN
BIRTH
RECORDS.—Procedures
under which the name of the father shall be included
on the record of birth of the child of unmarried parents
only if—
‘‘(I) the father and mother have signed a vol-
untary acknowledgment of paternity; or
‘‘(II) a court or an administrative agency of
competent jurisdiction has issued an adjudication
of paternity.
Nothing in this clause shall preclude a State agency
from obtaining an admission of paternity from the
father for submission in a judicial or administrative
proceeding, or prohibit the issuance of an order in
a judicial or administrative proceeding which bases
a legal finding of paternity on an admission of paternity
H. R. 4—111
by the father and any other additional showing
required by State law.
‘‘(ii) LEGAL
FINDING
OF
PATERNITY.—Procedures
under which a signed voluntary acknowledgment of
paternity is considered a legal finding of paternity,
subject to the right of any signatory to rescind the
acknowledgment within the earlier of—
‘‘(I) 60 days; or
‘‘(II) the date of an administrative or judicial
proceeding relating to the child (including a
proceeding to establish a support order) in which
the signatory is a party.
‘‘(iii) CONTEST.—Procedures under which, after the
60-day period referred to in clause (ii), a signed vol-
untary acknowledgment of paternity may be challenged
in court only on the basis of fraud, duress, or material
mistake of fact, with the burden of proof upon the
challenger, and under which the legal responsibilities
(including child support obligations) of any signatory
arising from the acknowledgment may not be sus-
pended during the challenge, except for good cause
shown.
‘‘(E) BAR ON ACKNOWLEDGMENT RATIFICATION PROCEED-
INGS.—Procedures under which judicial or administrative
proceedings are not required or permitted to ratify an
unchallenged acknowledgment of paternity.
‘‘(F) ADMISSIBILITY
OF
GENETIC
TESTING
RESULTS.—
Procedures—
‘‘(i) requiring the admission into evidence, for pur-
poses of establishing paternity, of the results of any
genetic test that is—
‘‘(I) of a type generally acknowledged as reli-
able by accreditation bodies designated by the Sec-
retary; and
‘‘(II) performed by a laboratory approved by
such an accreditation body;
‘‘(ii) requiring an objection to genetic testing
results to be made in writing not later than a specified
number of days before any hearing at which the results
may be introduced into evidence (or, at State option,
not later than a specified number of days after receipt
of the results); and
‘‘(iii) making the test results admissible as evi-
dence of paternity without the need for foundation
testimony or other proof of authenticity or accuracy,
unless objection is made.
‘‘(G) PRESUMPTION OF PATERNITY IN CERTAIN CASES.—
Procedures which create a rebuttable or, at the option
of the State, conclusive presumption of paternity upon
genetic testing results indicating a threshold probability
that the alleged father is the father of the child.
‘‘(H) DEFAULT ORDERS.—Procedures requiring a default
order to be entered in a paternity case upon a showing
of service of process on the defendant and any additional
showing required by State law.
H. R. 4—112
‘‘(I) NO RIGHT TO JURY TRIAL.—Procedures providing
that the parties to an action to establish paternity are
not entitled to a trial by jury.
‘‘(J) TEMPORARY SUPPORT ORDER BASED ON PROBABLE
PATERNITY IN CONTESTED CASES.—Procedures which require
that a temporary order be issued, upon motion by a party,
requiring the provision of child support pending an
administrative or judicial determination of parentage, if
there is clear and convincing evidence of paternity (on
the basis of genetic tests or other evidence).
‘‘(K) PROOF
OF
CERTAIN
SUPPORT
AND
PATERNITY
ESTABLISHMENT COSTS.—Procedures under which bills for
pregnancy, childbirth, and genetic testing are admissible
as evidence without requiring third-party foundation testi-
mony, and shall constitute prima facie evidence of amounts
incurred for such services or for testing on behalf of the
child.
‘‘(L) STANDING
OF
PUTATIVE
FATHERS.—Procedures
ensuring that the putative father has a reasonable oppor-
tunity to initiate a paternity action.
‘‘(M) FILING OF ACKNOWLEDGMENTS AND ADJUDICATIONS
IN STATE REGISTRY OF BIRTH RECORDS.—Procedures under
which voluntary acknowledgments and adjudications of
paternity by judicial or administrative processes are filed
with the State registry of birth records for comparison
with information in the State case registry.’’.
(b) NATIONAL PATERNITY ACKNOWLEDGMENT AFFIDAVIT.—Sec-
tion 452(a)(7) (42 U.S.C. 652(a)(7)) is amended by inserting ‘‘, and
develop an affidavit to be used for the voluntary acknowledgment
of paternity which shall include the social security number of each
parent and, after consultation with the States, other common ele-
ments as determined by such designee’’ before the semicolon.
(c) CONFORMING AMENDMENT.—Section 468 (42 U.S.C. 668) is
amended by striking ‘‘a simple civil process for voluntarily acknowl-
edging paternity and’’.
SEC. 332. OUTREACH FOR VOLUNTARY PATERNITY ESTABLISHMENT.
Section 454(23) (42 U.S.C. 654(23)) is amended by inserting
‘‘and will publicize the availability and encourage the use of proce-
dures for voluntary establishment of paternity and child support
by means the State deems appropriate’’ before the semicolon.
SEC. 333. COOPERATION BY APPLICANTS FOR AND RECIPIENTS OF
TEMPORARY FAMILY ASSISTANCE.
Section 454 (42 U.S.C. 654), as amended by sections 301(b),
303(a), 312(a), and 313(a) of this Act, is amended—
(1) by striking ‘‘and’’ at the end of paragraph (27);
(2) by striking the period at the end of paragraph (28)
and inserting ‘‘; and’’; and
(3) by inserting after paragraph (28) the following new
paragraph:
‘‘(29) provide that the State agency responsible for admin-
istering the State plan—
‘‘(A) shall make the determination (and redetermina-
tion at appropriate intervals) as to whether an individual
who has applied for or is receiving assistance under the
State program funded under part A or the State program
under title XIX is cooperating in good faith with the State
H. R. 4—113
in establishing the paternity of, or in establishing, modify-
ing, or enforcing a support order for, any child of the
individual by providing the State agency with the name
of, and such other information as the State agency may
require with respect to, the noncustodial parent of the
child, subject to such good cause exceptions, taking into
account the best interests of the child, as the State may
establish through the State agency, or at the option of
the State, through the State agencies administering the
State programs funded under part A and title XIX;
‘‘(B) shall require the individual to supply additional
necessary information and appear at interviews, hearings,
and legal proceedings;
‘‘(C) shall require the individual and the child to submit
to genetic tests pursuant to judicial or administrative order;
‘‘(D) may request that the individual sign a voluntary
acknowledgment of paternity, after notice of the rights
and consequences of such an acknowledgment, but may
not require the individual to sign an acknowledgment or
otherwise relinquish the right to genetic tests as a condition
of cooperation and eligibility for assistance under the State
program funded under part A or the State program under
title XIX; and
‘‘(E) shall promptly notify the individual and the State
agency administering the State program funded under part
A and the State agency administering the State program
under title XIX of each such determination, and if
noncooperation is determined, the basis therefore.’’.
Subtitle E—Program Administration and
Funding
SEC. 341. PERFORMANCE-BASED INCENTIVES AND PENALTIES.
(a) DEVELOPMENT OF NEW SYSTEM.—The Secretary of Health
and Human Services, in consultation with State directors of pro-
grams under part D of title IV of the Social Security Act, shall
develop a new incentive system to replace, in a revenue neutral
manner, the system under section 458 of such Act. The new system
shall provide additional payments to any State based on such
State’s performance under such a program. Not later than June
1, 1996, the Secretary shall report on the new system to the
Committee on Ways and Means of the House of Representatives
and the Committee on Finance of the Senate.
(b) CONFORMING AMENDMENTS TO PRESENT SYSTEM.—Section
458 (42 U.S.C. 658) is amended—
(1) in subsection (a), by striking ‘‘aid to families with
dependent children under a State plan approved under part
A of this title’’ and inserting ‘‘assistance under a program
funded under part A’’;
(2) in subsection (b)(1)(A), by striking ‘‘section 402(a)(26)’’
and inserting ‘‘section 408(a)(4)’’;
(3) in subsections (b) and (c)—
(A) by striking ‘‘AFDC collections’’ each place it appears
and inserting ‘‘title IV–A collections’’, and
(B) by striking ‘‘non-AFDC collections’’ each place it
appears and inserting ‘‘non-title IV–A collections’’; and
H. R. 4—114
(4) in subsection (c), by striking ‘‘combined AFDC/non-
AFDC administrative costs’’ both places it appears and inserting
‘‘combined title IV–A/non-title IV–A administrative costs’’.
(c) CALCULATION OF IV–D PATERNITY ESTABLISHMENT PERCENT-
AGE.—
(1) Section 452(g)(1)(A) (42 U.S.C. 652(g)(1)(A)) is amended
by striking ‘‘75’’ and inserting ‘‘90’’.
(2) Section 452(g)(1) (42 U.S.C. 652(g)(1)) is amended by
redesignating subparagraphs (B) through (E) as subparagraphs
(C) through (F), respectively, and by inserting after subpara-
graph (A) the following new subparagraph:
‘‘(B) for a State with a paternity establishment percent-
age of not less than 75 percent but less than 90 percent
for such fiscal year, the paternity establishment percentage
of the State for the immediately preceding fiscal year plus
2 percentage points;’’.
(3) Section 452(g)(2)(A) (42 U.S.C. 652(g)(2)(A)) is amended
in the matter preceding clause (i)—
(A) by striking ‘‘paternity establishment percentage’’
and inserting ‘‘IV–D paternity establishment percentage’’;
and
(B) by striking ‘‘(or all States, as the case may be)’’.
(4) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is amended by
adding at the end the following new sentence: ‘‘In meeting
the 90 percent paternity establishment requirement, a State
may calculate either the paternity establishment rate of cases
in the program funded under this part or the paternity
establishment rate of all out-of-wedlock births in the State.’’.
(5) Section 452(g)(3) (42 U.S.C. 652(g)(3)) is amended—
(A) by striking subparagraph (A) and redesignating
subparagraphs (B) and (C) as subparagraphs (A) and (B),
respectively;
(B) in subparagraph (A) (as so redesignated), by strik-
ing ‘‘the percentage of children born out-of-wedlock in a
State’’ and inserting ‘‘the percentage of children in a State
who are born out of wedlock or for whom support has
not been established’’; and
(C) in subparagraph (B) (as so redesignated) by insert-
ing ‘‘and securing support’’ before the period.
(d) EFFECTIVE DATES.—
(1) INCENTIVE ADJUSTMENTS.—
(A) IN GENERAL.—The system developed under subsection
(a) and the amendments made by subsection (b) shall become
effective on October 1, 1997, except to the extent provided
in subparagraph (B).
(B) APPLICATION OF SECTION 458.—Section 458 of the Social
Security Act, as in effect on the day before the date of the
enactment of this section, shall be effective for purposes of
incentive payments to States for fiscal years before fiscal year
1999.
(2) PENALTY REDUCTIONS.—The amendments made by sub-
section (c) shall become effective with respect to calendar quar-
ters beginning on or after the date of the enactment of this
Act.
H. R. 4—115
SEC. 342. FEDERAL AND STATE REVIEWS AND AUDITS.
(a) STATE AGENCY ACTIVITIES.—Section 454 (42 U.S.C. 654)
is amended—
(1) in paragraph (14), by striking ‘‘(14)’’ and inserting
‘‘(14)(A)’’;
(2) by redesignating paragraph (15) as subparagraph (B)
of paragraph (14); and
(3) by inserting after paragraph (14) the following new
paragraph:
‘‘(15) provide for—
‘‘(A) a process for annual reviews of and reports to
the Secretary on the State program operated under the
State plan approved under this part, including such
information as may be necessary to measure State compli-
ance with Federal requirements for expedited procedures,
using such standards and procedures as are required by
the Secretary, under which the State agency will determine
the extent to which the program is operated in compliance
with this part; and
‘‘(B) a process of extracting from the automated data
processing system required by paragraph (16) and
transmitting to the Secretary data and calculations
concerning the levels of accomplishment (and rates of
improvement) with respect to applicable performance
indicators (including IV–D paternity establishment percent-
ages to the extent necessary for purposes of sections 452(g)
and 458.’’.
(b) FEDERAL ACTIVITIES.—Section 452(a)(4) (42 U.S.C. 652(a)(4))
is amended to read as follows:
‘‘(4)(A) review data and calculations transmitted by State
agencies pursuant to section 454(15)(B) on State program
accomplishments with respect to performance indicators for
purposes of subsection (g) of this section and section 458;
‘‘(B) review annual reports submitted pursuant to section
454(15)(A) and, as appropriate, provide to the State comments,
recommendations for additional or alternative corrective
actions, and technical assistance; and
‘‘(C) conduct audits, in accordance with the Government
auditing standards of the Comptroller General of the United
States—
‘‘(i) at least once every 3 years (or more frequently,
in the case of a State which fails to meet the requirements
of this part concerning performance standards and reliabil-
ity of program data) to assess the completeness, reliability,
and security of the data, and the accuracy of the reporting
systems, used in calculating performance indicators under
subsection (g) of this section and section 458;
‘‘(ii) of the adequacy of financial management of the
State program operated under the State plan approved
under this part, including assessments of—
‘‘(I) whether Federal and other funds made avail-
able to carry out the State program are being appro-
priately 
expended, 
and 
are 
properly 
and 
fully
accounted for; and
‘‘(II) whether collections and disbursements of sup-
port payments are carried out correctly and are fully
accounted for; and
H. R. 4—116
‘‘(iii) for such other purposes as the Secretary may
find necessary;’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall be effective with respect to calendar quarters beginning 12
months or more after the date of the enactment of this Act.
SEC. 343. REQUIRED REPORTING PROCEDURES.
(a) ESTABLISHMENT.—Section 452(a)(5) (42 U.S.C. 652(a)(5)) is
amended by inserting ‘‘, and establish procedures to be followed
by States for collecting and reporting information required to be
provided under this part, and establish uniform definitions (includ-
ing those necessary to enable the measurement of State compliance
with the requirements of this part relating to expedited processes)
to be applied in following such procedures’’ before the semicolon.
(b) STATE PLAN REQUIREMENT.—Section 454 (42 U.S.C. 654),
as amended by sections 301(b), 303(a), 312(a), 313(a), and 333
of this Act, is amended—
(1) by striking ‘‘and’’ at the end of paragraph (28);
(2) by striking the period at the end of paragraph (29)
and inserting ‘‘; and’’; and
(3) by adding after paragraph (29) the following new
paragraph:
‘‘(30) provide that the State shall use the definitions estab-
lished under section 452(a)(5) in collecting and reporting
information as required under this part.’’.
SEC. 344. AUTOMATED DATA PROCESSING REQUIREMENTS.
(a) REVISED REQUIREMENTS.—
(1) IN GENERAL.—Section 454(16) (42 U.S.C. 654(16)) is
amended—
(A) by striking ‘‘, at the option of the State,’’;
(B) by inserting ‘‘and operation by the State agency’’
after ‘‘for the establishment’’;
(C) by inserting ‘‘meeting the requirements of section
454A’’ after ‘‘information retrieval system’’;
(D) by striking ‘‘in the State and localities thereof,
so as (A)’’ and inserting ‘‘so as’’;
(E) by striking ‘‘(i)’’; and
(F) by striking ‘‘(including’’ and all that follows and
inserting a semicolon.
(2) AUTOMATED DATA PROCESSING.—Part D of title IV (42
U.S.C. 651–669) is amended by inserting after section 454
the following new section:
‘‘SEC. 454A. AUTOMATED DATA PROCESSING.
‘‘(a) IN GENERAL.—In order for a State to meet the requirements
of this section, the State agency administering the State program
under this part shall have in operation a single statewide automated
data processing and information retrieval system which has the
capability to perform the tasks specified in this section with the
frequency and in the manner required by or under this part.
‘‘(b) PROGRAM MANAGEMENT.—The automated system required
by this section shall perform such functions as the Secretary may
specify relating to management of the State program under this
part, including—
‘‘(1) controlling and accounting for use of Federal, State,
and local funds in carrying out the program; and
H. R. 4—117
‘‘(2) maintaining the data necessary to meet Federal report-
ing requirements under this part on a timely basis.
‘‘(c) CALCULATION OF PERFORMANCE INDICATORS.—In order to
enable the Secretary to determine the incentive payments and
penalty adjustments required by sections 452(g) and 458, the State
agency shall—
‘‘(1) use the automated system—
‘‘(A) to maintain the requisite data on State perform-
ance with respect to paternity establishment and child
support enforcement in the State; and
‘‘(B) to calculate the IV–D paternity establishment
percentage for the State for each fiscal year; and
‘‘(2) have in place systems controls to ensure the complete-
ness and reliability of, and ready access to, the data described
in paragraph (1)(A), and the accuracy of the calculations
described in paragraph (1)(B).
‘‘(d) INFORMATION INTEGRITY AND SECURITY.—The State agency
shall have in effect safeguards on the integrity, accuracy, and
completeness of, access to, and use of data in the automated system
required by this section, which shall include the following (in addi-
tion to such other safeguards as the Secretary may specify in
regulations):
‘‘(1) 
POLICIES
RESTRICTING
ACCESS.—Written 
policies
concerning access to data by State agency personnel, and shar-
ing of data with other persons, which—
‘‘(A) permit access to and use of data only to the
extent necessary to carry out the State program under
this part; and
‘‘(B) specify the data which may be used for particular
program purposes, and the personnel permitted access to
such data.
‘‘(2) SYSTEMS CONTROLS.—Systems controls (such as pass-
words or blocking of fields) to ensure strict adherence to the
policies described in paragraph (1).
‘‘(3) MONITORING OF ACCESS.—Routine monitoring of access
to and use of the automated system, through methods such
as audit trails and feedback mechanisms, to guard against
and promptly identify unauthorized access or use.
‘‘(4) TRAINING
AND
INFORMATION.—Procedures to ensure
that all personnel (including State and local agency staff and
contractors) who may have access to or be required to use
confidential program data are informed of applicable require-
ments and penalties (including those in section 6103 of the
Internal Revenue Code of 1986), and are adequately trained
in security procedures.
‘‘(5) PENALTIES.—Administrative penalties (up to and
including dismissal from employment) for unauthorized access
to, or disclosure or use of, confidential data.’’.
(3) REGULATIONS.—The Secretary of Health and Human
Services shall prescribe final regulations for implementation
of section 454A of the Social Security Act not later than 2
years after the date of the enactment of this Act.
(4) IMPLEMENTATION
TIMETABLE.—Section 454(24) (42
U.S.C. 654(24)), as amended by section 303(a)(1) of this Act,
is amended to read as follows:
‘‘(24) provide that the State will have in effect an automated
data processing and information retrieval system—
H. R. 4—118
‘‘(A) by October 1, 1997, which meets all requirements
of this part which were enacted on or before the date
of enactment of the Family Support Act of 1988, and
‘‘(B) by October 1, 1999, which meets all requirements
of this part enacted on or before the date of the enactment
of the Personal Responsibility and Work Opportunity Act
of 1995, except that such deadline shall be extended by
1 day for each day (if any) by which the Secretary fails
to meet the deadline imposed by section 344(a)(3) of the
Personal Responsibility and Work Opportunity Act of
1995;’’.
(b) SPECIAL FEDERAL MATCHING RATE FOR DEVELOPMENT COSTS
OF AUTOMATED SYSTEMS.—
(1) IN
GENERAL.—Section 455(a) (42 U.S.C. 655(a)) is
amended—
(A) in paragraph (1)(B)—
(i) by striking ‘‘90 percent’’ and inserting ‘‘the per-
cent specified in paragraph (3)’’;
(ii) by striking ‘‘so much of’’; and
(iii) by striking ‘‘which the Secretary’’ and all that
follows and inserting ‘‘, and’’; and
(B) by adding at the end the following new paragraph:
‘‘(3)(A) The Secretary shall pay to each State, for each quarter
in fiscal years 1996 and 1997, 90 percent of so much of the State
expenditures described in paragraph (1)(B) as the Secretary finds
are for a system meeting the requirements specified in section
454(16) (as in effect on September 30, 1995) but limited to the
amount approved for States in the advance planning documents
of such States submitted on or before May 1, 1995.
‘‘(B)(i) The Secretary shall pay to each State, for each quarter
in fiscal years 1996 through 2001, the percentage specified in clause
(ii) of so much of the State expenditures described in paragraph
(1)(B) as the Secretary finds are for a system meeting the require-
ments of sections 454(16) and 454A.
‘‘(ii) The percentage specified in this clause is 80 percent.’’.
(2) TEMPORARY LIMITATION ON PAYMENTS UNDER SPECIAL
FEDERAL MATCHING RATE.—
(A) IN GENERAL.—The Secretary of Health and Human
Services may not pay more than $400,000,000 in the aggre-
gate under section 455(a)(3)(B) of the Social Security Act
for fiscal years 1996 through 2001.
(B) ALLOCATION OF LIMITATION AMONG STATES.—The
total amount payable to a State under section 455(a)(3)(B)
of such Act for fiscal years 1996 through 2001 shall not
exceed the limitation determined for the State by the Sec-
retary of Health and Human Services in regulations.
(C) ALLOCATION FORMULA.—The regulations referred
to in subparagraph (B) shall prescribe a formula for allocat-
ing the amount specified in subparagraph (A) among States
with plans approved under part D of title IV of the Social
Security Act, which shall take into account—
(i) the relative size of State caseloads under such
part; and
(ii) the level of automation needed to meet the
automated data processing requirements of such part.
H. R. 4—119
(c) CONFORMING AMENDMENT.—Section 123(c) of the Family
Support Act of 1988 (102 Stat. 2352; Public Law 100–485) is
repealed.
SEC. 345. TECHNICAL ASSISTANCE.
(a) FOR TRAINING OF FEDERAL AND STATE STAFF, RESEARCH
AND
DEMONSTRATION
PROGRAMS, 
AND
SPECIAL
PROJECTS
OF
REGIONAL OR NATIONAL SIGNIFICANCE.—Section 452 (42 U.S.C. 652)
is amended by adding at the end the following new subsection:
‘‘(j) Out of any money in the Treasury of the United States
not otherwise appropriated, there is hereby appropriated to the
Secretary for each fiscal year an amount equal to 1 percent of
the total amount paid to the Federal Government pursuant to
section 457(a) during the immediately preceding fiscal year (as
determined on the basis of the most recent reliable data available
to the Secretary as of the end of the 3rd calendar quarter following
the end of such preceding fiscal year), to cover costs incurred
by the Secretary for—
‘‘(1) information dissemination and technical assistance to
States, training of State and Federal staff, staffing studies,
and related activities needed to improve programs under this
part (including technical assistance concerning State automated
systems required by this part); and
‘‘(2) research, demonstration, and special projects of
regional or national significance relating to the operation of
State programs under this part.
The amount appropriated under this subsection shall remain avail-
able until expended.’’.
(b) OPERATION OF FEDERAL PARENT LOCATOR SERVICE.—Section
453 (42 U.S.C. 653), as amended by section 316 of this Act, is
amended by adding at the end the following new subsection:
‘‘(o) RECOVERY OF COSTS.—Out of any money in the Treasury
of the United States not otherwise appropriated, there is hereby
appropriated to the Secretary for each fiscal year an amount equal
to 2 percent of the total amount paid to the Federal Government
pursuant to section 457(a) during the immediately preceding fiscal
year (as determined on the basis of the most recent reliable data
available to the Secretary as of the end of the 3rd calendar quarter
following the end of such preceding fiscal year), to cover costs
incurred by the Secretary for operation of the Federal Parent
Locator Service under this section, to the extent such costs are
not recovered through user fees.’’.
SEC. 346. REPORTS AND DATA COLLECTION BY THE SECRETARY.
(a) ANNUAL REPORT TO CONGRESS.—
(1) Section 452(a)(10)(A) (42 U.S.C. 652(a)(10)(A)) is
amended—
(A) by striking ‘‘this part;’’ and inserting ‘‘this part,
including—’’; and
(B) by adding at the end the following new clauses:
‘‘(i) the total amount of child support payments
collected as a result of services furnished during the
fiscal year to individuals receiving services under this
part;
‘‘(ii) the cost to the States and to the Federal
Government of so furnishing the services; and
‘‘(iii) the number of cases involving families—
H. R. 4—120
‘‘(I) who became ineligible for assistance under
State programs funded under part A during a
month in the fiscal year; and
‘‘(II) with respect to whom a child support
payment was received in the month;’’.
(2) Section 452(a)(10)(C) (42 U.S.C. 652(a)(10)(C)) is
amended—
(A) in the matter preceding clause (i)—
(i) by striking ‘‘with the data required under each
clause being separately stated for cases’’ and inserting
‘‘separately stated for (1) cases’’;
(ii) by striking ‘‘cases where the child was formerly
receiving’’ and inserting ‘‘or formerly received’’;
(iii) by inserting ‘‘or 1912’’ after ‘‘471(a)(17)’’; and
(iv) by inserting ‘‘(2)’’ before ‘‘all other’’;
(B) in each of clauses (i) and (ii), by striking ‘‘, and
the total amount of such obligations’’;
(C) in clause (iii), by striking ‘‘described in’’ and all
that follows and inserting ‘‘in which support was collected
during the fiscal year;’’;
(D) by striking clause (iv); and
(E) by redesignating clause (v) as clause (vii), and
inserting after clause (iii) the following new clauses:
‘‘(iv) the total amount of support collected during
such fiscal year and distributed as current support;
‘‘(v) the total amount of support collected during
such fiscal year and distributed as arrearages;
‘‘(vi) the total amount of support due and unpaid
for all fiscal years; and’’.
(3) Section 452(a)(10)(G) (42 U.S.C. 652(a)(10)(G)) is
amended by striking ‘‘on the use of Federal courts and’’.
(4) Section 452(a)(10) (42 U.S.C. 652(a)(10)) is amended—
(A) in subparagraph (H), by striking ‘‘and’’;
(B) in subparagraph (I), by striking the period and
inserting ‘‘; and’’; and
(C) by inserting after subparagraph (I) the following
new subparagraph:
‘‘(J) compliance, by State, with the standards estab-
lished pursuant to subsections (h) and (i).’’.
(5) Section 452(a)(10) (42 U.S.C. 652(a)(10)) is amended
by striking all that follows subparagraph (J), as added by
paragraph (4).
(b) EFFECTIVE DATE.—The amendments made by subsection
(a) shall be effective with respect to fiscal year 1996 and succeeding
fiscal years.
Subtitle F—Establishment and
Modification of Support Orders
SEC. 351. SIMPLIFIED PROCESS FOR REVIEW AND ADJUSTMENT OF
CHILD SUPPORT ORDERS.
Section 466(a)(10) (42 U.S.C. 666(a)(10)) is amended to read
as follows:
‘‘(10) REVIEW AND ADJUSTMENT OF SUPPORT ORDERS UPON
REQUEST.—Procedures under which the State shall review and
adjust each support order being enforced under this part upon
H. R. 4—121
the request of either parent or the State if there is an assign-
ment. Such procedures shall provide the following:
‘‘(A) IN GENERAL.—
‘‘(i) 3-YEAR CYCLE.—Except as provided in subpara-
graphs (B) and (C), the State shall review and, as
appropriate, adjust the support order every 3 years,
taking into account the best interests of the child
involved.
‘‘(ii) METHODS
OF
ADJUSTMENT.—The State may
elect to review and, if appropriate, adjust an order
pursuant to clause (i) by—
‘‘(I) reviewing and, if appropriate, adjusting
the order in accordance with the guidelines estab-
lished pursuant to section 467(a) if the amount
of the child support award under the order differs
from the amount that would be awarded in accord-
ance with the guidelines; or
‘‘(II) applying a cost-of-living adjustment to
the order in accordance with a formula developed
by the State and permit either party to contest
the adjustment, within 30 days after the date of
the notice of the adjustment, by making a request
for review and, if appropriate, adjustment of the
order in accordance with the child support guide-
lines established pursuant to section 467(a).
‘‘(iii) NO PROOF OF CHANGE IN CIRCUMSTANCES NEC-
ESSARY.—Any adjustment under this subparagraph (A)
shall be made without a requirement for proof or show-
ing of a change in circumstances.
‘‘(B) AUTOMATED METHOD.—The State may use auto-
mated methods (including automated comparisons with
wage or State income tax data) to identify orders eligible
for review, conduct the review, identify orders eligible for
adjustment, and apply the appropriate adjustment to the
orders eligible for adjustment under the threshold estab-
lished by the State.
‘‘(C) REQUEST
UPON
SUBSTANTIAL
CHANGE
IN
CIR-
CUMSTANCES.—The State shall, at the request of either
parent subject to such an order or of any State child support
enforcement agency, review and, if appropriate, adjust the
order in accordance with the guidelines established pursu-
ant to section 467(a) based upon a substantial change
in the circumstances of either parent.
‘‘(D) NOTICE OF RIGHT TO REVIEW.—The State shall
provide notice not less than once every 3 years to the
parents subject to such an order informing them of their
right to request the State to review and, if appropriate,
adjust the order pursuant to this paragraph. The notice
may be included in the order.’’.
SEC. 352. FURNISHING CONSUMER REPORTS FOR CERTAIN PURPOSES
RELATING TO CHILD SUPPORT.
Section 604 of the Fair Credit Reporting Act (15 U.S.C. 1681b)
is amended by adding at the end the following new paragraphs:
‘‘(4) In response to a request by the head of a State or
local child support enforcement agency (or a State or local
government official authorized by the head of such an agency),
H. R. 4—122
if the person making the request certifies to the consumer
reporting agency that—
‘‘(A) the consumer report is needed for the purpose
of establishing an individual’s capacity to make child sup-
port payments or determining the appropriate level of such
payments;
‘‘(B) the paternity of the consumer for the child to
which the obligation relates has been established or
acknowledged by the consumer in accordance with State
laws under which the obligation arises (if required by those
laws);
‘‘(C) the person has provided at least 10 days’ prior
notice to the consumer whose report is requested, by cer-
tified or registered mail to the last known address of the
consumer, that the report will be requested; and
‘‘(D) the consumer report will be kept confidential,
will be used solely for a purpose described in subparagraph
(A), and will not be used in connection with any other
civil, administrative, or criminal proceeding, or for any
other purpose.
‘‘(5) To an agency administering a State plan under section
454 of the Social Security Act (42 U.S.C. 654) for use to set
an initial or modified child support award.’’.
SEC. 353. NONLIABILITY FOR FINANCIAL INSTITUTIONS PROVIDING
FINANCIAL 
RECORDS 
TO 
STATE 
CHILD 
SUPPORT
ENFORCEMENT AGENCIES IN CHILD SUPPORT CASES.
(a) IN GENERAL.—Notwithstanding any other provision of Fed-
eral or State law, a financial institution shall not be liable under
any Federal or State law to any person for disclosing any financial
record of an individual to a State child support enforcement agency
attempting to establish, modify, or enforce a child support obligation
of such individual.
(b) PROHIBITION
OF
DISCLOSURE
OF
FINANCIAL
RECORD
OBTAINED BY STATE CHILD SUPPORT ENFORCEMENT AGENCY.—A
State child support enforcement agency which obtains a financial
record of an individual from a financial institution pursuant to
subsection (a) may disclose such financial record only for the pur-
pose of, and to the extent necessary in, establishing, modifying,
or enforcing a child support obligation of such individual.
(c) CIVIL DAMAGES FOR UNAUTHORIZED DISCLOSURE.—
(1) DISCLOSURE BY STATE OFFICER OR EMPLOYEE.—If any
person knowingly, or by reason of negligence, discloses a finan-
cial record of an individual in violation of subsection (b), such
individual may bring a civil action for damages against such
person in a district court of the United States.
(2) NO
LIABILITY
FOR
GOOD
FAITH
BUT
ERRONEOUS
INTERPRETATION.—No liability shall arise under this subsection
with respect to any disclosure which results from a good faith,
but erroneous, interpretation of subsection (b).
(3) DAMAGES.—In any action brought under paragraph (1),
upon a finding of liability on the part of the defendant, the
defendant shall be liable to the plaintiff in an amount equal
to the sum of—
(A) the greater of—
H. R. 4—123
(i) $1,000 for each act of unauthorized disclosure
of a financial record with respect to which such defend-
ant is found liable; or
(ii) the sum of—
(I) the actual damages sustained by the plain-
tiff as a result of such unauthorized disclosure;
plus
(II) in the case of a willful disclosure or a
disclosure which is the result of gross negligence,
punitive damages; plus
(B) the costs (including attorney’s fees) of the action.
(d) DEFINITIONS.—For purposes of this section—
(1) FINANCIAL INSTITUTION.—The term ‘‘financial institu-
tion’’ means—
(A) a depository institution, as defined in section 3(c)
of the Federal Deposit Insurance Act (12 U.S.C. 1813(c));
(B) an institution-affiliated party, as defined in section
3(u) of such Act (12 U.S.C. 1813(v));
(C) any Federal credit union or State credit union,
as defined in section 101 of the Federal Credit Union
Act (12 U.S.C. 1752), including an institution-affiliated
party of such a credit union, as defined in section 206(r)
of such Act (12 U.S.C. 1786(r)); and
(D) any benefit association, insurance company, safe
deposit company, money-market mutual fund, or similar
entity authorized to do business in the State.
(2) FINANCIAL RECORD.—The term ‘‘financial record’’ has
the meaning given such term in section 1101 of the Right
to Financial Privacy Act of 1978 (12 U.S.C. 3401).
(3) STATE
CHILD
SUPPORT
ENFORCEMENT
AGENCY.—The
term ‘‘State child support enforcement agency’’ means a State
agency which administers a State program for establishing
and enforcing child support obligations.
Subtitle G—Enforcement of Support
Orders
SEC. 361. INTERNAL REVENUE SERVICE COLLECTION OF ARREAR-
AGES.
(a) COLLECTION OF FEES.—Section 6305(a) of the Internal Reve-
nue Code of 1986 (relating to collection of certain liability) is
amended—
(1) by striking ‘‘and’’ at the end of paragraph (3);
(2) by striking the period at the end of paragraph (4)
and inserting ‘‘, and’’;
(3) by adding at the end the following new paragraph:
‘‘(5) no additional fee may be assessed for adjustments
to an amount previously certified pursuant to such section
452(b) with respect to the same obligor.’’; and
(4) by striking ‘‘Secretary of Health, Education, and Wel-
fare’’ each place it appears and inserting ‘‘Secretary of Health
and Human Services’’.
(b) EFFECTIVE DATE.—The amendments made by this section
shall become effective October 1, 1997.
H. R. 4—124
SEC. 362. AUTHORITY TO COLLECT SUPPORT FROM FEDERAL EMPLOY-
EES.
(a) CONSOLIDATION AND STREAMLINING OF AUTHORITIES.—Sec-
tion 459 (42 U.S.C. 659) is amended to read as follows:
‘‘SEC. 459. CONSENT BY THE UNITED STATES TO INCOME WITHHOLD-
ING, GARNISHMENT, AND SIMILAR PROCEEDINGS FOR
ENFORCEMENT OF CHILD SUPPORT AND ALIMONY
OBLIGATIONS.
‘‘(a) CONSENT
TO SUPPORT ENFORCEMENT.—Notwithstanding
any other provision of law (including section 207 of this Act and
section 5301 of title 38, United States Code), effective January
1, 1975, moneys (the entitlement to which is based upon remunera-
tion for employment) due from, or payable by, the United States
or the District of Columbia (including any agency, subdivision,
or instrumentality thereof) to any individual, including members
of the Armed Forces of the United States, shall be subject, in
like manner and to the same extent as if the United States or
the District of Columbia were a private person, to withholding
in accordance with State law enacted pursuant to subsections (a)(1)
and (b) of section 466 and regulations of the Secretary under such
subsections, and to any other legal process brought, by a State
agency administering a program under a State plan approved under
this part or by an individual obligee, to enforce the legal obligation
of the individual to provide child support or alimony.
‘‘(b) CONSENT TO REQUIREMENTS APPLICABLE TO PRIVATE PER-
SON.—With respect to notice to withhold income pursuant to sub-
section (a)(1) or (b) of section 466, or any other order or process
to enforce support obligations against an individual (if the order
or process contains or is accompanied by sufficient data to permit
prompt identification of the individual and the moneys involved),
each governmental entity specified in subsection (a) shall be subject
to the same requirements as would apply if the entity were a
private person, except as otherwise provided in this section.
‘‘(c) DESIGNATION
OF
AGENT; RESPONSE
TO
NOTICE
OR
PROCESS—
‘‘(1) DESIGNATION
OF
AGENT.—The head of each agency
subject to this section shall—
‘‘(A) designate an agent or agents to receive orders
and accept service of process in matters relating to child
support or alimony; and
‘‘(B) annually publish in the Federal Register the des-
ignation of the agent or agents, identified by title or posi-
tion, mailing address, and telephone number.
‘‘(2) RESPONSE TO NOTICE OR PROCESS.—If an agent des-
ignated pursuant to paragraph (1) of this subsection receives
notice pursuant to State procedures in effect pursuant to sub-
section (a)(1) or (b) of section 466, or is effectively served
with any order, process, or interrogatory, with respect to an
individual’s child support or alimony payment obligations, the
agent shall—
‘‘(A) as soon as possible (but not later than 15 days)
thereafter, send written notice of the notice or service
(together with a copy of the notice or service) to the individ-
ual at the duty station or last-known home address of
the individual;
H. R. 4—125
‘‘(B) within 30 days (or such longer period as may
be prescribed by applicable State law) after receipt of a
notice pursuant to such State procedures, comply with all
applicable provisions of section 466; and
‘‘(C) within 30 days (or such longer period as may
be prescribed by applicable State law) after effective service
of any other such order, process, or interrogatory, respond
to the order, process, or interrogatory.
‘‘(d) PRIORITY OF CLAIMS.—If a governmental entity specified
in subsection (a) receives notice or is served with process, as pro-
vided in this section, concerning amounts owed by an individual
to more than 1 person—
‘‘(1) support collection under section 466(b) must be given
priority over any other process, as provided in section 466(b)(7);
‘‘(2) allocation of moneys due or payable to an individual
among claimants under section 466(b) shall be governed by
section 466(b) and the regulations prescribed under such sec-
tion; and
‘‘(3) such moneys as remain after compliance with para-
graphs (1) and (2) shall be available to satisfy any other such
processes on a first-come, first-served basis, with any such
process being satisfied out of such moneys as remain after
the satisfaction of all such processes which have been previously
served.
‘‘(e) NO REQUIREMENT TO VARY PAY CYCLES.—A governmental
entity that is affected by legal process served for the enforcement
of an individual’s child support or alimony payment obligations
shall not be required to vary its normal pay and disbursement
cycle in order to comply with the legal process.
‘‘(f) RELIEF FROM LIABILITY.—
‘‘(1) Neither the United States, nor the government of the
District of Columbia, nor any disbursing officer shall be liable
with respect to any payment made from moneys due or payable
from the United States to any individual pursuant to legal
process regular on its face, if the payment is made in accordance
with this section and the regulations issued to carry out this
section.
‘‘(2) No Federal employee whose duties include taking
actions necessary to comply with the requirements of subsection
(a) with regard to any individual shall be subject under any
law to any disciplinary action or civil or criminal liability or
penalty for, or on account of, any disclosure of information
made by the employee in connection with the carrying out
of such actions.
‘‘(g) REGULATIONS.—Authority to promulgate regulations for the
implementation of this section shall, insofar as this section applies
to moneys due from (or payable by)—
‘‘(1) the United States (other than the legislative or judicial
branches of the Federal Government) or the government of
the District of Columbia, be vested in the President (or the
designee of the President);
‘‘(2) the legislative branch of the Federal Government, be
vested jointly in the President pro tempore of the Senate and
the Speaker of the House of Representatives (or their des-
ignees), and
H. R. 4—126
‘‘(3) the judicial branch of the Federal Government, be
vested in the Chief Justice of the United States (or the designee
of the Chief Justice).
‘‘(h) MONEYS SUBJECT TO PROCESS.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), moneys paid
or payable to an individual which are considered to be based
upon remuneration for employment, for purposes of this
section—
‘‘(A) consist of—
‘‘(i) compensation paid or payable for personal serv-
ices of the individual, whether the compensation is
denominated as wages, salary, commission, bonus, pay,
allowances, or otherwise (including severance pay, sick
pay, and incentive pay);
‘‘(ii) periodic benefits (including a periodic benefit
as defined in section 228(h)(3)) or other payments—
‘‘(I) under the insurance system established
by title II;
‘‘(II) under any other system or fund estab-
lished by the United States which provides for
the payment of pensions, retirement or retired pay,
annuities, dependents’ or survivors’ benefits, or
similar amounts payable on account of personal
services performed by the individual or any other
individual;
‘‘(III) as compensation for death under any
Federal program;
‘‘(IV) under any Federal program established
to provide ‘black lung’ benefits; or
‘‘(V) by the Secretary of Veterans Affairs as
compensation for a service-connected disability
paid by the Secretary to a former member of the
Armed Forces who is in receipt of retired or
retainer pay if the former member has waived
a portion of the retired or retainer pay in order
to receive such compensation; and
‘‘(iii) worker’s compensation benefits paid under
Federal or State law but
‘‘(B) do not include any payment—
‘‘(i) by way of reimbursement or otherwise, to
defray expenses incurred by the individual in carrying
out duties associated with the employment of the
individual; or
‘‘(ii) as allowances for members of the uniformed
services payable pursuant to chapter 7 of title 37,
United States Code, as prescribed by the Secretaries
concerned (defined by section 101(5) of such title) as
necessary for the efficient performance of duty.
‘‘(2) CERTAIN
AMOUNTS
EXCLUDED.—In determining the
amount of any moneys due from, or payable by, the United
States to any individual, there shall be excluded amounts
which—
‘‘(A) are owed by the individual to the United States;
‘‘(B) are required by law to be, and are, deducted
from the remuneration or other payment involved, includ-
ing Federal employment taxes, and fines and forfeitures
ordered by court-martial;
H. R. 4—127
‘‘(C) are properly withheld for Federal, State, or local
income tax purposes, if the withholding of the amounts
is authorized or required by law and if amounts withheld
are not greater than would be the case if the individual
claimed all dependents to which he was entitled (the
withholding of additional amounts pursuant to section
3402(i) of the Internal Revenue Code of 1986 may be per-
mitted only when the individual presents evidence of a
tax obligation which supports the additional withholding);
‘‘(D) are deducted as health insurance premiums;
‘‘(E) are deducted as normal retirement contributions
(not including amounts deducted for supplementary cov-
erage); or
‘‘(F) are deducted as normal life insurance premiums
from salary or other remuneration for employment (not
including amounts deducted for supplementary coverage).
‘‘(i) DEFINITIONS.—For purposes of this section—
‘‘(1) UNITED
STATES.—The term ‘United States’ includes
any department, agency, or instrumentality of the legislative,
judicial, or executive branch of the Federal Government, the
United States Postal Service, the Postal Rate Commission, any
Federal corporation created by an Act of Congress that is wholly
owned by the Federal Government, and the governments of
the territories and possessions of the United States.
‘‘(2) CHILD SUPPORT.—The term ‘child support’, when used
in reference to the legal obligations of an individual to provide
such support, means amounts required to be paid under a
judgment, decree, or order, whether temporary, final, or subject
to modification, issued by a court or an administrative agency
of competent jurisdiction, for the support and maintenance
of a child, including a child who has attained the age of majority
under the law of the issuing State, or a child and the parent
with whom the child is living, which provides for monetary
support, health care, arrearages or reimbursement, and which
may include other related costs and fees, interest and penalties,
income withholding, attorney’s fees, and other relief.
‘‘(3) ALIMONY.—
‘‘(A) IN GENERAL.—The term ‘alimony’, when used in
reference to the legal obligations of an individual to provide
the same, means periodic payments of funds for the support
and maintenance of the spouse (or former spouse) of the
individual, and (subject to and in accordance with State
law) includes separate maintenance, alimony pendente lite,
maintenance, and spousal support, and includes attorney’s
fees, interest, and court costs when and to the extent
that the same are expressly made recoverable as such
pursuant to a decree, order, or judgment issued in accord-
ance with applicable State law by a court of competent
jurisdiction.
‘‘(B) EXCEPTIONS.—Such term does not include—
‘‘(i) any child support; or
‘‘(ii) any payment or transfer of property or its
value by an individual to the spouse or a former spouse
of the individual in compliance with any community
property settlement, equitable distribution of property,
or other division of property between spouses or former
spouses.
H. R. 4—128
‘‘(4) PRIVATE
PERSON.—The term ‘private person’ means
a person who does not have sovereign or other special immunity
or privilege which causes the person not to be subject to legal
process.
‘‘(5) LEGAL PROCESS.—The term ‘legal process’ means any
writ, order, summons, or other similar process in the nature
of garnishment—
‘‘(A) which is issued by—
‘‘(i) a court or an administrative agency of com-
petent jurisdiction in any State, territory, or possession
of the United States;
‘‘(ii) a court or an administrative agency of com-
petent jurisdiction in any foreign country with which
the United States has entered into an agreement which
requires the United States to honor the process; or
‘‘(iii) an authorized official pursuant to an order
of such a court or an administrative agency of com-
petent jurisdiction or pursuant to State or local law;
and
‘‘(B) which is directed to, and the purpose of which
is to compel, a governmental entity which holds moneys
which are otherwise payable to an individual to make
a payment from the moneys to another party in order
to satisfy a legal obligation of the individual to provide
child support or make alimony payments.’’.
(b) CONFORMING AMENDMENTS.—
(1) TO
PART
D
OF
TITLE
IV.—Sections 461 and 462 (42
U.S.C. 661 and 662) are repealed.
(2) TO TITLE 5, UNITED STATES CODE.—Section 5520a of
title 5, United States Code, is amended, in subsections (h)(2)
and (i), by striking ‘‘sections 459, 461, and 462 of the Social
Security Act (42 U.S.C. 659, 661, and 662)’’ and inserting ‘‘sec-
tion 459 of the Social Security Act (42 U.S.C. 659)’’.
(c) MILITARY RETIRED AND RETAINER PAY.—
(1) DEFINITION OF COURT.—Section 1408(a)(1) of title 10,
United States Code, is amended—
(A) by striking ‘‘and’’ at the end of subparagraph (B);
(B) by striking the period at the end of subparagraph
(C) and inserting ‘‘; and’’; and
(C) by adding after subparagraph (C) the following:
new subparagraph:
‘‘(D) any administrative or judicial tribunal of a State
competent to enter orders for support or maintenance
(including a State agency administering a program under
a State plan approved under part D of title IV of the
Social Security Act), and, for purposes of this subparagraph,
the term ‘State’ includes the District of Columbia, the
Commonwealth of Puerto Rico, the Virgin Islands, Guam,
and American Samoa.’’.
(2) DEFINITION
OF
COURT
ORDER.—Section 1408(a)(2) of
such title is amended—
(A) by inserting ‘‘or a support order, as defined in
section 453(p) of the Social Security Act (42 U.S.C. 653(p)),’’
before ‘‘which—’’;
(B) in subparagraph (B)(i), by striking ‘‘(as defined
in section 462(b) of the Social Security Act (42 U.S.C.
H. R. 4—129
662(b)))’’ and inserting ‘‘(as defined in section 459(i)(2) of
the Social Security Act (42 U.S.C. 662(i)(2)))’’; and
(C) in subparagraph (B)(ii), by striking ‘‘(as defined
in section 462(c) of the Social Security Act (42 U.S.C.
662(c)))’’ and inserting ‘‘(as defined in section 459(i)(3) of
the Social Security Act (42 U.S.C. 662(i)(3)))’’.
(3) PUBLIC
PAYEE.—Section 1408(d) of such title is
amended—
(A) in the heading, by inserting ‘‘(OR
FOR BENEFIT
OF)’’ before ‘‘SPOUSE OR’’; and
(B) in paragraph (1), in the 1st sentence, by inserting
‘‘(or for the benefit of such spouse or former spouse to
a State disbursement unit established pursuant to section
454B of the Social Security Act or other public payee des-
ignated by a State, in accordance with part D of title
IV of the Social Security Act, as directed by court order,
or as otherwise directed in accordance with such part D)’’
before ‘‘in an amount sufficient’’.
(4) RELATIONSHIP TO PART D OF TITLE IV.—Section 1408
of such title is amended by adding at the end the following
new subsection:
‘‘(j) RELATIONSHIP TO OTHER LAWS.—In any case involving an
order providing for payment of child support (as defined in section
459(i)(2) of the Social Security Act) by a member who has never
been married to the other parent of the child, the provisions of
this section shall not apply, and the case shall be subject to the
provisions of section 459 of such Act.’’.
(d) EFFECTIVE DATE.—The amendments made by this section
shall become effective 6 months after the date of the enactment
of this Act.
SEC. 363. ENFORCEMENT OF CHILD SUPPORT OBLIGATIONS OF MEM-
BERS OF THE ARMED FORCES.
(a) AVAILABILITY OF LOCATOR INFORMATION.—
(1) MAINTENANCE
OF
ADDRESS
INFORMATION.—The Sec-
retary of Defense shall establish a centralized personnel locator
service that includes the address of each member of the Armed
Forces under the jurisdiction of the Secretary. Upon request
of the Secretary of Transportation, addresses for members of
the Coast Guard shall be included in the centralized personnel
locator service.
(2) TYPE OF ADDRESS.—
(A) RESIDENTIAL
ADDRESS.—Except as provided in
subparagraph (B), the address for a member of the Armed
Forces shown in the locator service shall be the residential
address of that member.
(B) DUTY ADDRESS.—The address for a member of the
Armed Forces shown in the locator service shall be the
duty address of that member in the case of a member—
(i) who is permanently assigned overseas, to a
vessel, or to a routinely deployable unit; or
(ii) with respect to whom the Secretary concerned
makes a determination that the member’s residential
address should not be disclosed due to national security
or safety concerns.
(3) UPDATING OF LOCATOR INFORMATION.—Within 30 days
after a member listed in the locator service establishes a new
H. R. 4—130
residential address (or a new duty address, in the case of
a member covered by paragraph (2)(B)), the Secretary concerned
shall update the locator service to indicate the new address
of the member.
(4) AVAILABILITY
OF
INFORMATION.—The Secretary of
Defense shall make information regarding the address of a
member of the Armed Forces listed in the locator service avail-
able, on request, to the Federal Parent Locator Service estab-
lished under section 453 of the Social Security Act.
(b) FACILITATING GRANTING
OF LEAVE
FOR ATTENDANCE
AT
HEARINGS.—
(1) REGULATIONS.—The Secretary of each military depart-
ment, and the Secretary of Transportation with respect to the
Coast Guard when it is not operating as a service in the
Navy, shall prescribe regulations to facilitate the granting of
leave to a member of the Armed Forces under the jurisdiction
of that Secretary in a case in which—
(A) the leave is needed for the member to attend a
hearing described in paragraph (2);
(B) the member is not serving in or with a unit
deployed in a contingency operation (as defined in section
101 of title 10, United States Code); and
(C) the exigencies of military service (as determined
by the Secretary concerned) do not otherwise require that
such leave not be granted.
(2) COVERED HEARINGS.—Paragraph (1) applies to a hearing
that is conducted by a court or pursuant to an administrative
process established under State law, in connection with a civil
action—
(A) to determine whether a member of the Armed
Forces is a natural parent of a child; or
(B) to determine an obligation of a member of the
Armed Forces to provide child support.
(3) DEFINITIONS.—For purposes of this subsection—
(A) The term ‘‘court’’ has the meaning given that term
in section 1408(a) of title 10, United States Code.
(B) The term ‘‘child support’’ has the meaning given
such term in section 459(i) of the Social Security Act (42
U.S.C. 659(i)).
(c) PAYMENT OF MILITARY RETIRED PAY IN COMPLIANCE WITH
CHILD SUPPORT ORDERS.—
(1) DATE OF CERTIFICATION OF COURT ORDER.—Section 1408
of title 10, United States Code, as amended by section 362(c)(4)
of this Act, is amended—
(A) by redesignating subsections (i) and (j) as sub-
sections (j) and (k), respectively; and
(B) by inserting after subsection (h) the following new
subsection:
‘‘(i) CERTIFICATION DATE.—It is not necessary that the date
of a certification of the authenticity or completeness of a copy
of a court order for child support received by the Secretary con-
cerned for the purposes of this section be recent in relation to
the date of receipt by the Secretary.’’.
(2) PAYMENTS CONSISTENT WITH ASSIGNMENTS OF RIGHTS
TO
STATES.—Section 1408(d)(1) of such title is amended by
inserting after the 1st sentence the following new sentence:
‘‘In the case of a spouse or former spouse who, pursuant to
H. R. 4—131
section 408(a)(4) of the Social Security Act (42 U.S.C. 607(a)(4)),
assigns to a State the rights of the spouse or former spouse
to receive support, the Secretary concerned may make the
child support payments referred to in the preceding sentence
to that State in amounts consistent with that assignment of
rights.’’.
(3) ARREARAGES
OWED
BY
MEMBERS
OF
THE
UNIFORMED
SERVICES.—Section 1408(d) of such title is amended by adding
at the end the following new paragraph:
‘‘(6) In the case of a court order for which effective service
is made on the Secretary concerned on or after the date of the
enactment of this paragraph and which provides for payments
from the disposable retired pay of a member to satisfy the amount
of child support set forth in the order, the authority provided
in paragraph (1) to make payments from the disposable retired
pay of a member to satisfy the amount of child support set forth
in a court order shall apply to payment of any amount of child
support arrearages set forth in that order as well as to amounts
of child support that currently become due.’’.
(4) PAYROLL DEDUCTIONS.—The Secretary of Defense shall
begin payroll deductions within 30 days after receiving notice
of withholding, or for the 1st pay period that begins after
such 30-day period.
SEC. 364. VOIDING OF FRAUDULENT TRANSFERS.
Section 466 (42 U.S.C. 666), as amended by section 321 of
this Act, is amended by adding at the end the following new
subsection:
‘‘(g) LAWS VOIDING FRAUDULENT TRANSFERS.—In order to sat-
isfy section 454(20)(A), each State must have in effect—
‘‘(1)(A) the Uniform Fraudulent Conveyance Act of 1981;
‘‘(B) the Uniform Fraudulent Transfer Act of 1984;
or
‘‘(C) another law, specifying indicia of fraud which
create a prima facie case that a debtor transferred income
or property to avoid payment to a child support creditor,
which the Secretary finds affords comparable rights to
child support creditors; and
‘‘(2) procedures under which, in any case in which the
State knows of a transfer by a child support debtor with respect
to which such a prima facie case is established, the State
must—
‘‘(A) seek to void such transfer; or
‘‘(B) obtain a settlement in the best interests of the
child support creditor.’’.
SEC. 365. WORK REQUIREMENT FOR PERSONS OWING PAST-DUE
CHILD SUPPORT.
(a) IN GENERAL.—Section 466(a) of the Social Security Act
(42 U.S.C. 666(a)), as amended by sections 315, 317(a), and 323
of this Act, is amended by adding at the end the following new
paragraph:
‘‘(15) PROCEDURES TO ENSURE THAT PERSONS OWING PAST-
DUE SUPPORT WORK OR HAVE A PLAN FOR PAYMENT OF SUCH
SUPPORT.—
‘‘(A) IN GENERAL.—Procedures under which the State
has the authority, in any case in which an individual
owes past-due support with respect to a child receiving
H. R. 4—132
assistance under a State program funded under part A,
to seek a court order that requires the individual to—
‘‘(i) pay such support in accordance with a plan
approved by the court, or, at the option of the State,
a plan approved by the State agency administering
the State program under this part; or
‘‘(ii) if the individual is subject to such a plan
and is not incapacitated, participate in such work
activities (as defined in section 407(d)) as the court,
or, at the option of the State, the State agency admin-
istering the State program under this part, deems
appropriate.
‘‘(B) PAST-DUE
SUPPORT
DEFINED.—For purposes of
subparagraph (A), the term ‘past-due support’ means the
amount of a delinquency, determined under a court order,
or an order of an administrative process established under
State law, for support and maintenance of a child, or of
a child and the parent with whom the child is living.’’.
(b) CONFORMING AMENDMENT.—The flush paragraph at the end
of section 466(a) (42 U.S.C.666(a)) is amended by striking ‘‘and
(7)’’ and inserting ‘‘(7), and (15)’’.
SEC. 366. DEFINITION OF SUPPORT ORDER.
Section 453 (42 U.S.C. 653) as amended by sections 316 and
345(b) of this Act, is amended by adding at the end the following
new subsection:
‘‘(p) SUPPORT ORDER DEFINED.—As used in this part, the term
‘support order’ means a judgment, decree, or order, whether tem-
porary, final, or subject to modification, issued by a court or an
administrative agency of competent jurisdiction, for the support
and maintenance of a child, including a child who has attained
the age of majority under the law of the issuing State, or a child
and the parent with whom the child is living, which provides
for monetary support, health care, arrearages, or reimbursement,
and which may include related costs and fees, interest and penalties,
income withholding, attorneys’ fees, and other relief.’’.
SEC. 367. REPORTING ARREARAGES TO CREDIT BUREAUS.
Section 466(a)(7) (42 U.S.C. 666(a)(7)) is amended to read as
follows:
‘‘(7) REPORTING ARREARAGES TO CREDIT BUREAUS.—
‘‘(A) IN GENERAL.—Procedures (subject to safeguards
pursuant to subparagraph (B)) requiring the State to report
periodically to consumer reporting agencies (as defined in
section 603(f) of the Fair Credit Reporting Act (15 U.S.C.
1681a(f)) the name of any noncustodial parent who is delin-
quent in the payment of support, and the amount of over-
due support owed by such parent.
‘‘(B) SAFEGUARDS.—Procedures ensuring that, in carry-
ing out subparagraph (A), information with respect to a
noncustodial parent is reported—
‘‘(i) only after such parent has been afforded all
due process required under State law, including notice
and a reasonable opportunity to contest the accuracy
of such information; and
‘‘(ii) only to an entity that has furnished evidence
satisfactory to the State that the entity is a consumer
reporting agency (as so defined).’’.
H. R. 4—133
SEC. 368. LIENS.
Section 466(a)(4) (42 U.S.C. 666(a)(4)) is amended to read as
follows:
‘‘(4) LIENS.—Procedures under which—
‘‘(A) liens arise by operation of law against real and
personal property for amounts of overdue support owed
by a noncustodial parent who resides or owns property
in the State; and
‘‘(B) the State accords full faith and credit to liens
described in subparagraph (A) arising in another State,
without registration of the underlying order.’’.
SEC. 369. STATE LAW AUTHORIZING SUSPENSION OF LICENSES.
Section 466(a) (42 U.S.C. 666(a)), as amended by sections 315,
317(a), 323, and 365 of this Act, is amended by adding at the
end the following:
‘‘(16) AUTHORITY TO WITHHOLD OR SUSPEND LICENSES.—
Procedures under which the State has (and uses in appropriate
cases) authority to withhold or suspend, or to restrict the use
of driver’s licenses, professional and occupational licenses, and
recreational licenses of individuals owing overdue support or
failing, after receiving appropriate notice, to comply with
subpoenas or warrants relating to paternity or child support
proceedings.’’.
SEC. 370. DENIAL OF PASSPORTS FOR NONPAYMENT OF CHILD
SUPPORT.
(a) HHS CERTIFICATION PROCEDURE.—
(1) SECRETARIAL RESPONSIBILITY.—Section 452 (42 U.S.C.
652), as amended by section 345 of this Act, is amended by
adding at the end the following new subsection:
‘‘(k)(1) If the Secretary receives a certification by a State agency
in accordance with the requirements of section 454(31) that an
individual owes arrearages of child support in an amount exceeding
$5,000, the Secretary shall transmit such certification to the Sec-
retary of State for action (with respect to denial, revocation, or
limitation of passports) pursuant to section 370(b) of the Personal
Responsibility and Work Opportunity Act of 1995.
‘‘(2) The Secretary shall not be liable to an individual for
any action with respect to a certification by a State agency under
this section.’’.
(2) STATE CASE AGENCY RESPONSIBILITY.—Section 454 (42
U.S.C. 654), as amended by sections 301(b), 303(a), 312(b),
313(a), 333, and 343(b) of this Act, is amended—
(A) by striking ‘‘and’’ at the end of paragraph (29);
(B) by striking the period at the end of paragraph
(30) and inserting ‘‘; and’’; and
(C) by adding after paragraph (30) the following new
paragraph:
‘‘(31) provide that the State agency will have in effect
a procedure for certifying to the Secretary, for purposes of
the procedure under section 452(k), determinations that individ-
uals owe arrearages of child support in an amount exceeding
$5,000, under which procedure—
‘‘(A) each individual concerned is afforded notice of
such determination and the consequences thereof, and an
opportunity to contest the determination; and
H. R. 4—192
‘‘(2) shall at a minimum, focus on—
‘‘(A) the nature and scope of child abuse and neglect;
‘‘(B) the causes, prevention, assessment, identification,
treatment, cultural and socio-economic distinctions, and
the consequences of child abuse and neglect;
‘‘(C) appropriate, effective and culturally sensitive
investigative, administrative, and judicial procedures with
respect to cases of child abuse; and
‘‘(D) the national incidence of child abuse and neglect,
including—
‘‘(i) the extent to which incidents of child abuse
are increasing or decreasing in number and severity;
‘‘(ii) the incidence of substantiated and unsubstan-
tiated reported child abuse cases;
‘‘(iii) the number of substantiated cases that result
in a judicial finding of child abuse or neglect or related
criminal court convictions;
‘‘(iv) the extent to which the number of unsubstan-
tiated, unfounded and false reported cases of child
abuse or neglect have contributed to the inability of
a State to respond effectively to serious cases of child
abuse or neglect;
‘‘(v) the extent to which the lack of adequate
resources and the lack of adequate training of reporters
have contributed to the inability of a State to respond
effectively to serious cases of child abuse and neglect;
‘‘(vi) the number of unsubstantiated, false, or
unfounded reports that have resulted in a child being
placed in substitute care, and the duration of such
placement;
‘‘(vii) the extent to which unsubstantiated reports
return as more serious cases of child abuse or neglect;
‘‘(viii) the incidence and prevalence of physical,
sexual, and emotional abuse and physical and emo-
tional neglect in substitute care;
‘‘(ix) the incidence and outcomes of abuse allega-
tions reported within the context of divorce, custody,
or other family court proceedings, and the interaction
between this venue and the child protective services
system; and
‘‘(x) the cases of children reunited with their fami-
lies or receiving family preservation services that result
in subsequent substantiated reports of child abuse and
neglect, including the death of the child; and
‘‘(3) may include the appointment of an advisory board
to—
‘‘(A) provide recommendations on coordinating Federal,
State, and local child abuse and neglect activities at the
State level with similar activities at the State and local
level pertaining to family violence prevention;
‘‘(B) consider specific modifications needed in State
laws and programs to reduce the number of unfounded
or unsubstantiated reports of child abuse or neglect while
enhancing the ability to identify and substantiate legiti-
mate cases of abuse or neglect which place a child in
danger; and
H. R. 4—220
ment factors under this subclause without a
requirement for documentation of the costs
described in clause (i), except that reimburse-
ment shall not be provided under this
subclause for meals or supplements served to
the children of a person acting as a family
or group day care home provider unless the
children meet the income eligibility guidelines
for free or reduced price meals under section
9.
‘‘(II) OTHER FACTORS.—A family or group day
care home that does not meet the criteria set forth
in clause (ii)(I) may elect to be provided reimburse-
ment factors determined in accordance with the
following requirements:
‘‘(aa) CHILDREN
ELIGIBLE
FOR
FREE
OR
REDUCED PRICE MEALS.—In the case of meals
or supplements served under this subsection
to children who are members of households
whose incomes meet the income eligibility
guidelines for free or reduced price meals
under section 9, the family or group day care
home shall be provided reimbursement factors
set by the Secretary in accordance with clause
(ii)(III).
‘‘(bb) INELIGIBLE CHILDREN.—In the case
of meals or supplements served under this
subsection to children who are members of
households whose incomes do not meet the
income eligibility guidelines, the family or
group day care home shall be provided
reimbursement factors in accordance with
subclause (I).
‘‘(III) INFORMATION AND DETERMINATIONS.—
‘‘(aa) IN GENERAL.—If a family or group
day care home elects to claim the factors
described in subclause (II), the family or group
day care home sponsoring organization serving
the home shall collect the necessary income
information, as determined by the Secretary,
from any parent or other caretaker to make
the determinations specified in subclause (II)
and shall make the determinations in accord-
ance with rules prescribed by the Secretary.
‘‘(bb) CATEGORICAL ELIGIBILITY.—In mak-
ing a determination under item (aa), a family
or group day care home sponsoring organiza-
tion may consider a child participating in or
subsidized under, or a child with a parent
participating in or subsidized under, a feder-
ally or State supported child care or other
benefit program with an income eligibility
limit that does not exceed the eligibility stand-
ard for free or reduced price meals under sec-
tion 9 to be a child who is a member of a
household whose income meets the income
eligibility guidelines under section 9.
H. R. 4—226
(2) by redesignating paragraphs (4) and (5) as paragraphs
(3) and (4), respectively.
(b) DEMO PROJECT OUTSIDE SCHOOL HOURS.—Section 18(e) of
the Act is amended—
(1) in paragraph (1)—
(A) in subparagraph (A)—
(i) by striking ‘‘(A)’’; and
(ii) by striking ‘‘shall’’ and inserting ‘‘may’’; and
(B) by striking subparagraph (B); and
(2) by striking paragraph (5) and inserting the following:
‘‘(5) 
AUTHORIZATION
OF
APPROPRIATIONS.—There 
are
authorized to be appropriated to carry out this subsection such
sums as are necessary for each of fiscal years 1997 and 1998.’’.
(c) ELIMINATING PROJECTS.—Section 18 of the Act is amended—
(1) by striking subsections (a) and (g) through (i); and
(2) by redesignating subsections (b) through (f), as so
amended, as subsections (a) through (e), respectively.
(d) CONFORMING AMENDMENT.—Section 17B(d)(1)(A) of the Act
(42 U.S.C. 1766b(d)(1)(A)) is amended by striking ‘‘18(c)’’ and insert-
ing ‘‘18(b)’’.
SEC. 910. REDUCTION OF PAPERWORK.
Section 19 of the National School Lunch Act (42 U.S.C. 1769a)
is repealed.
SEC. 911. INFORMATION ON INCOME ELIGIBILITY.
Section 23 of the National School Lunch Act (42 U.S.C. 1769d)
is repealed.
SEC. 912. NUTRITION GUIDANCE FOR CHILD NUTRITION PROGRAMS.
Section 24 of the National School Lunch Act (42 U.S.C. 1769e)
is repealed.
SEC. 913. INFORMATION CLEARINGHOUSE.
Section 26 of the National School Lunch Act (42 U.S.C. 1769g)
is repealed.
SEC. 914. SCHOOL NUTRITION OPTIONAL BLOCK GRANT DEMONSTRA-
TION PROGRAM.
(a) IN GENERAL.—The National School Lunch Act is amended
by inserting after section 4 (42 U.S.C. 1753) the following:
‘‘SEC. 5. SCHOOL NUTRITION OPTIONAL BLOCK GRANT DEMONSTRA-
TION PROGRAM.
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) BLOCK GRANT DEMONSTRATION PROGRAM.—The term
‘block grant demonstration program’ means the block grant
program demonstration program established under subsection
(b).
‘‘(2) DEPARTMENT
OF
DEFENSE
DOMESTIC
DEPENDENTS’
SCHOOL.—The term ‘Department of Defense domestic depend-
ents’ school’ means an elementary or secondary school estab-
lished under section 2164 of title 10, United States Code.
‘‘(3) LOW-INCOME STUDENT.—The term ‘low-income student’
means a student who is a member of a family whose income
is less than 130 percent of the poverty line.
‘‘(4) NEEDY STUDENT.—The term ‘needy student’ means a
student who is a member of a family whose income is not
H. R. 4—252
is not available locally through the statewide workforce
development system.’’;
(2) in subparagraph (B)—
(A) in the matter preceding clause (i), by striking the
colon at the end and inserting the following: ‘‘, except
that the State agency shall retain the option to apply
employment requirements prescribed under this subpara-
graph to a program applicant at the time of application:’’;
(B) in clause (i), by striking ‘‘with terms and conditions’’
and all that follows through ‘‘time of application’’; and
(C) in clause (iv)—
(i) by striking subclauses (I) and (II); and
(ii) by redesignating subclauses (III) and (IV) as
subclauses (I) and (II), respectively;
(3) in subparagraph (D)—
(A) in clause (i), by striking ‘‘to which the application’’
and all that follows through ‘‘30 days or less’’;
(B) in clause (ii), by striking ‘‘but with respect’’ and
all that follows through ‘‘child care’’; and
(C) in clause (iii), by striking ‘‘, on the basis of’’ and
all that follows through ‘‘clause (ii)’’ and inserting ‘‘the
exemption continues to be valid’’;
(4) in subparagraph (E), by striking the third sentence;
(5) in subparagraph (G)—
(A) by striking ‘‘(G)(i) The State’’ and inserting ‘‘(G)
The State’’; and
(B) by striking clause (ii);
(6) in subparagraph (H), by striking ‘‘(H)(i) The Secretary’’
and all that follows through ‘‘(ii) Federal funds’’ and inserting
‘‘(H) Federal funds’’;
(7) in subparagraph (I)(i)(II), by striking ‘‘, or was in oper-
ation,’’ and all that follows through ‘‘Social Security Act’’ and
inserting the following: ‘‘), except that no such payment or
reimbursement shall exceed the applicable local market rate’’;
(8)(A) by striking subparagraphs (K) and (L) and inserting
the following:
‘‘(K) LIMITATION ON FUNDING.—Notwithstanding any
other provision of this paragraph, the amount of funds
a State agency uses to carry out this paragraph (including
under subparagraph (I)) for participants who are receiving
benefits under a State program funded under part A of
title IV of the Social Security Act (42 U.S.C. 601 et seq.)
shall not exceed the amount of funds the State agency
used in fiscal year 1995 to carry out this paragraph for
participants who were receiving benefits in fiscal year 1995
under a State program funded under part A of title IV
of the Act (42 U.S.C. 601 et seq.).’’; and
(B) by redesignating subparagraphs (M) and (N) as sub-
paragraphs (L) and (M), respectively; and
(9) in subparagraph (L), as redesignated by paragraph
(8)(B)—
(A) by striking ‘‘(L)(i) The Secretary’’ and inserting
‘‘(L) The Secretary’’; and
(B) by striking clause (ii).
(b) FUNDING.—Section 16(h) of the Act (7 U.S.C. 2025(h)) is
amended by striking ‘‘(h)(1)(A) The Secretary’’ and all that follows
through the end of paragraph (1) and inserting the following:
H. R. 4—263
able, on request, to any Federal, State, or local law enforce-
ment officer if the officer furnishes the State agency with
the name of the member and notifies the agency that—
‘‘(i) the member—
‘‘(I) is fleeing to avoid prosecution, or custody
or confinement after conviction, for a crime (or
attempt to commit a crime) that, under the law
of the place the member is fleeing, is a felony
(or, in the case of New Jersey, a high mis-
demeanor), or is violating a condition of probation
or parole imposed under Federal or State law;
or
‘‘(II) has information that is necessary for the
officer to conduct an official duty related to
subclause (I);
‘‘(ii) locating or apprehending the member is an
official duty; and
‘‘(iii) the request is being made in the proper exer-
cise of an official duty; and
‘‘(E) the safeguards shall not prevent compliance with
paragraph (16);’’.
SEC. 1047. EXPEDITED COUPON SERVICE.
Section 11(e)(9) of the Food Stamp Act of 1977 (7 U.S.C.
2020(e)(9)) is amended—
(1) in subparagraph (A)—
(A) by striking ‘‘five days’’ and inserting ‘‘7 days’’; and
(B) by inserting ‘‘and’’ at the end;
(2) by striking subparagraphs (B) and (C);
(3) by redesignating subparagraph (D) as subparagraph
(B); and
(4) in subparagraph (B), as redesignated by paragraph
(3), by striking ‘‘, (B), or (C)’’.
SEC. 1048. WITHDRAWING FAIR HEARING REQUESTS.
Section 11(e)(10) of the Food Stamp Act of 1977 (7 U.S.C.
2020(e)(10)) is amended by inserting before the semicolon at the
end a period and the following: ‘‘At the option of a State, at any
time prior to a fair hearing determination under this paragraph,
a household may withdraw, orally or in writing, a request by
the household for the fair hearing. If the withdrawal request is
an oral request, the State agency shall provide a written notice
to the household confirming the withdrawal request and providing
the household with an opportunity to request a hearing’’.
SEC. 1049. INCOME, ELIGIBILITY, AND IMMIGRATION STATUS VER-
IFICATION SYSTEMS.
Section 11 of the Food Stamp Act of 1977 (7 U.S.C. 2020)
is amended—
(1) in subsection (e)(18), as redesignated by section
1044(1)(D)—
(A) by striking ‘‘that information is’’ and inserting ‘‘at
the option of the State agency, that information may be’’;
and
(B) by striking ‘‘shall be requested’’ and inserting ‘‘may
be requested’’; and
(2) by adding at the end the following:
H. R. 4—269
SEC. 1060. RESPONSE TO WAIVERS.
Section 17(b)(1) of the Food Stamp Act of 1977 (7 U.S.C.
2026(b)(1)), as amended by section 1058, is further amended by
adding at the end the following:
‘‘(D) RESPONSE TO WAIVERS.—
‘‘(i) RESPONSE.—Not later than 60 days after the
date of receiving a request for a waiver under subpara-
graph (A), the Secretary shall provide a response that—
‘‘(I) approves the waiver request;
‘‘(II) denies the waiver request and explains
any modification needed for approval of the waiver
request;
‘‘(III) denies the waiver request and explains
the grounds for the denial; or
‘‘(IV) requests clarification of the waiver
request.
‘‘(ii) FAILURE TO RESPOND.—If the Secretary does
not provide a response in accordance with clause (i),
the waiver shall be considered approved, unless the
approval is specifically prohibited by this Act.
‘‘(iii) NOTICE OF DENIAL.—On denial of a waiver
request under clause (i)(III), the Secretary shall pro-
vide a copy of the waiver request and a description
of the reasons for the denial to the Committee on
Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of
the Senate.’’.
SEC. 1061. EMPLOYMENT INITIATIVES PROGRAM.
Section 17 of the Food Stamp Act of 1977 (7 U.S.C. 2026)
is amended by striking subsection (d) and inserting the following:
‘‘(d) EMPLOYMENT INITIATIVES PROGRAM.—
‘‘(1) ELECTION TO PARTICIPATE.—
‘‘(A) IN GENERAL.—Subject to the other provisions of
this subsection, a State may elect to carry out an employ-
ment initiatives program under this subsection.
‘‘(B) REQUIREMENT.—A State shall be eligible to carry
out an employment initiatives program under this sub-
section only if not less than 50 percent of the households
that received food stamp benefits during the summer of
1993 also received benefits under a State program funded
under part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.) during the summer of 1993.
‘‘(2) PROCEDURE.—
‘‘(A) IN GENERAL.—A State that has elected to carry
out an employment initiatives program under paragraph
(1) may use amounts equal to the food stamp allotments
that would otherwise be issued to a household under the
food stamp program, but for the operation of this sub-
section, to provide cash benefits in lieu of the food stamp
allotments to the household if the household is eligible
under paragraph (3).
‘‘(B) PAYMENT.—The Secretary shall pay to each State
that has elected to carry out an employment initiatives
program under paragraph (1) an amount equal to the value
of the allotment that each household would be eligible
H. R. 4—270
to receive under this Act but for the operation of this
subsection.
‘‘(C) OTHER
PROVISIONS.—For purposes of the food
stamp program (other than this subsection)—
‘‘(i) cash assistance under this subsection shall
be considered to be an allotment; and
‘‘(ii) each household receiving cash benefits under
this subsection shall not receive any other food stamp
benefit for the period for which the cash assistance
is provided.
‘‘(D) ADDITIONAL
PAYMENTS.—Each State that has
elected to carry out an employment initiatives program
under paragraph (1) shall—
‘‘(i) increase the cash benefits provided to each
household under this subsection to compensate for any
State or local sales tax that may be collected on pur-
chases of food by any household receiving cash benefits
under this subsection, unless the Secretary determines
on the basis of information provided by the State that
the increase is unnecessary on the basis of the limited
nature of the items subject to the State or local sales
tax; and
‘‘(ii) pay the cost of any increase in cash benefits
required by clause (i).
‘‘(3) ELIGIBILITY.—A household shall be eligible to receive
cash benefits under paragraph (2) if an adult member of the
household—
‘‘(A) has worked in unsubsidized employment for not
less than the preceding 90 days;
‘‘(B) has earned not less than $350 per month from
the employment referred to in subparagraph (A) for not
less than the preceding 90 days;
‘‘(C)(i) is receiving benefits under a State program
funded under part A of title IV of the Social Security
Act (42 U.S.C. 601 et seq.); or
‘‘(ii) was receiving benefits under a State program
funded under part A of title IV of the Social Security
Act (42 U.S.C. 601 et seq.) at the time the member first
received cash benefits under this subsection and is no
longer eligible for the State program because of earned
income;
‘‘(D) is continuing to earn not less than $350 per month
from the employment referred to in subparagraph (A); and
‘‘(E) elects to receive cash benefits in lieu of food stamp
benefits under this subsection.
‘‘(4) EVALUATION.—A State that operates a program under
this subsection for 2 years shall provide to the Secretary a
written evaluation of the impact of cash assistance under this
subsection. The State agency, with the concurrence of the Sec-
retary, shall determine the content of the evaluation.’’.
SEC. 1062. ADJUSTABLE FOOD STAMP CAP.
Section 18 of the Food Stamp Act of 1977 (7 U.S.C. 2027)
is amended—
(1) in subsection (a)(1)—
(A) in the first sentence, by striking ‘‘1991 through
1995’’ and inserting ‘‘1996 through 2002’’; and
H. R. 4—276
‘‘(i) to provide food assistance to needy individuals
and families residing in the State, other than residents
of institutions who are ineligible for food stamps under
section 3(i); and
‘‘(ii) to pay administrative costs incurred in provid-
ing the assistance.
‘‘(C) GROUPS SERVED.—The State plan shall describe
how and to what extent the program will serve specific
groups of individuals and families and how the treatment
will differ from treatment under the food stamp program
under the other sections of this Act of the individuals
and families, including—
‘‘(i) elderly individuals and families;
‘‘(ii) migrants or seasonal farmworkers;
‘‘(iii) homeless individuals and families;
‘‘(iv) individuals and families who live in institu-
tions eligible under section 3(i);
‘‘(v) individuals and families with earnings; and
‘‘(vi) members of Indian tribes or tribal organiza-
tions.
‘‘(D) ASSISTANCE FOR ENTIRE STATE.—The State plan
shall provide that benefits under this section shall be avail-
able throughout the entire State.
‘‘(E) NOTICE AND HEARINGS.—The State plan shall pro-
vide that an individual or family who applies for, or
receives, assistance under this section shall be provided
with notice of, and an opportunity for a hearing on, any
action under this section that adversely affects the individ-
ual or family.
‘‘(F) ASSESSMENT
OF NEEDS.—The State plan shall
assess the food and nutrition needs of needy persons resid-
ing in the State.
‘‘(G) ELIGIBILITY
STANDARDS.—The State plan shall
describe the income, resource, and other eligibility stand-
ards that are established for the receipt of assistance under
this section.
‘‘(H) DISQUALIFICATION OF FLEEING FELONS.—The State
plan shall provide for the disqualification of any individual
who would be disqualified from participating in the food
stamp program under section 6(k).
‘‘(I) DISQUALIFICATION FOR CHILD SUPPORT ARREARS.—
The State plan shall provide for the disqualification of
any individual who would be disqualified from participating
in the food stamp program under section 6(n).
‘‘(J) RECEIVING BENEFITS IN MORE THAN 1 JURISDIC-
TION.—The State plan shall establish a system for the
exchange of information with other States to verify the
identity and receipt of benefits by recipients.
‘‘(K) PRIVACY.—The State plan shall provide for safe-
guarding and restricting the use and disclosure of informa-
tion about any individual or family receiving assistance
under this section.
‘‘(L) OTHER INFORMATION.—The State plan shall con-
tain such other information as may be required by the
Secretary.