2078
HR 2491 EAS
‘‘(B) by October 1, 1999, which meets all re-
quirements of this part enacted on or before the
date of the enactment of the Personal Respon-
sibility and Work Opportunity Act of 1995, ex-
cept 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
12344(a)(3) of the Personal Responsibility and
Work Opportunity Act of 1995;’’.
(b) SPECIAL FEDERAL MATCHING RATE FOR DEVEL-
OPMENT 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 in-
serting ‘‘the percent 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
2079
HR 2491 EAS
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 1997 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 requirements of sections 454(16)
and 454A.
‘‘(ii) The percentage specified in this clause is 80 per-
cent.’’.
(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 aggregate under section
455(a)(3) of the Social Security Act for fiscal
years 1996, 1997, 1998, 1999, and 2000.
(B) ALLOCATION
OF
LIMITATION
AMONG
STATES.—The total amount payable to a State
under section 455(a)(3) of such Act for fiscal
years 1996, 1997, 1998, 1999, and 2000 shall
2080
HR 2491 EAS
not exceed the limitation determined for the
State by the Secretary of Health and Human
Services in regulations.
(C) ALLOCATION
FORMULA.—The regula-
tions referred to in subparagraph (B) shall pre-
scribe a formula for allocating the amount speci-
fied in subparagraph (A) among States with
plans approved under part D of title IV of the
Social Security Act, which shall take into ac-
count—
(i) the relative size of State caseloads
under such part; and
(ii) the level of automation needed to
meet the automated data processing require-
ments of such part.
(c) CONFORMING AMENDMENT.—Section 123(c) of the
Family Support Act of 1988 (102 Stat. 2352; Public Law
100–485) is repealed.
SEC. 12345. 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:
2081
HR 2491 EAS
‘‘(j) Out of any money in the Treasury of the United
States not otherwise appropriated, there is hereby appro-
priated 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 imme-
diately 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 as-
sistance to States, training of State and Federal staff,
staffing studies, and related activities needed to im-
prove programs under this part (including technical
assistance concerning State automated systems re-
quired 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.’’.
(b) OPERATION OF FEDERAL PARENT LOCATOR SERV-
ICE.—Section 453 (42 U.S.C. 653), as amended by section
12316 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,
2082
HR 2491 EAS
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) dur-
ing 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 fol-
lowing the end of such preceding fiscal year), to cover costs
incurred by the Secretary for operation of the Federal Par-
ent Locator Service under this section, to the extent such
costs are not recovered through user fees.’’.
SEC. 12346. REPORTS AND DATA COLLECTION BY THE SEC-
RETARY.
(a) ANNUAL REPORT TO CONGRESS.—
(1) 
Section 
452(a)(10)(A) 
(42 
U.S.C.
652(a)(10)(A)) is amended—
(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 individ-
uals receiving services under this part;
2083
HR 2491 EAS
‘‘(ii) the cost to the States and to the
Federal Government of so furnishing the
services; and
‘‘(iii) the number of cases involving
families—
‘‘(I) who became ineligible for as-
sistance 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
2084
HR 2491 EAS
(iv) by inserting ‘‘(2)’’ before ‘‘all
other’’;
(B) in each of clauses (i) and (ii), by strik-
ing ‘‘, 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 follow-
ing new clauses:
‘‘(iv) the total amount of support col-
lected during such fiscal year and distrib-
uted as current support;
‘‘(v) the total amount of support col-
lected during such fiscal year and distrib-
uted as arrearages;
‘‘(vi) the total amount of support due
and unpaid for all fiscal years; and’’.
(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—
2085
HR 2491 EAS
(A) in subparagraph (H), by striking
‘‘and’’;
(B) in subparagraph (I), by striking the pe-
riod and inserting ‘‘; and’’; and
(C) by inserting after subparagraph (I) the
following new subparagraph:
‘‘(J) compliance, by State, with the stand-
ards established 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 sub-
section (a) shall be effective with respect to fiscal year 1996
and succeeding fiscal years.
CHAPTER 6—ESTABLISHMENT AND
MODIFICATION OF SUPPORT ORDERS
SEC. 12351. SIMPLIFIED PROCESS FOR REVIEW AND AD-
JUSTMENT 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 the request of ei-
2086
HR 2491 EAS
ther parent or the State if there is an assignment.
Such procedures shall provide the following:
‘‘(A) IN GENERAL.—
‘‘(i) 3-YEAR
CYCLE.—Except as pro-
vided in subparagraphs (B) and (C), the
State shall review and, as appropriate, ad-
just 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 appro-
priate, adjust an order pursuant to clause
(i) by—
‘‘(I) reviewing and, if appro-
priate, adjusting the order in accord-
ance with the guidelines established
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 ac-
cordance with the guidelines; or
‘‘(II) applying a cost-of-living ad-
justment to the order in accordance
with a formula developed by the State
and permit either party to contest the
2087
HR 2491 EAS
adjustment, within 30 days after the
date of the notice of the adjustment, by
making a request for review and, if ap-
propriate, adjustment of the order in
accordance with the child support
guidelines established pursuant to sec-
tion 467(a).
‘‘(iii) NO PROOF OF CHANGE IN CIR-
CUMSTANCES NECESSARY.—Any adjustment
under this subparagraph (A) shall be made
without a requirement for proof or showing
of a change in circumstances.
‘‘(B) AUTOMATED
METHOD.—The State
may use automated methods (including auto-
mated 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 adjust-
ment to the orders eligible for adjustment under
the threshold established by the State.
‘‘(C) REQUEST UPON SUBSTANTIAL CHANGE
IN CIRCUMSTANCES.—The State shall, at the re-
quest of either parent subject to such an order or
of any State child support enforcement agency,
review and, if appropriate, adjust the order in
2088
HR 2491 EAS
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. 12352. FURNISHING CONSUMER REPORTS FOR CER-
TAIN PURPOSES RELATING TO CHILD SUP-
PORT.
Section 604 of the Fair Credit Reporting Act (15
U.S.C. 1681b) is amended by adding at the end the follow-
ing 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), if the person making the re-
quest certifies to the consumer reporting agency
that—
‘‘(A) the consumer report is needed for the
purpose of establishing an individual’s capacity
2089
HR 2491 EAS
to make child support 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 es-
tablished or acknowledged by the consumer in ac-
cordance with State laws under which the obliga-
tion 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 certified or registered mail to the
last known address of the consumer, that the re-
port will be requested; and
‘‘(D) the consumer report will be kept con-
fidential, will be used solely for a purpose de-
scribed in subparagraph (A), and will not be
used in connection with any other civil, admin-
istrative, 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.’’.
2091
HR 2491 EAS
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 ERRO-
NEOUS
INTERPRETATION.—No liability shall arise
under this subsection with respect to any disclosure
which results from a good faith, but erroneous, inter-
pretation 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—
(i) $1,000 for each act of unauthorized
disclosure of a financial record with respect
to which such defendant is found liable; or
(ii) the sum of—
(I) the actual damages sustained
by the plaintiff as a result of such un-
authorized disclosure; plus
(II) in the case of a willful disclo-
sure or a disclosure which is the result
of gross negligence, punitive damages;
plus
(B) the costs (including attorney’s fees) of
the action.
2092
HR 2491 EAS
(d) DEFINITIONS.—For purposes of this section—
(1) FINANCIAL INSTITUTION.—The term ‘‘finan-
cial institution’’ 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 de-
fined 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 com-
pany, safe deposit company, money-market mu-
tual 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 AGEN-
CY.—The term ‘‘State child support enforcement agen-
2093
HR 2491 EAS
cy’’ means a State agency which administers a State
program for establishing and enforcing child support
obligations.
CHAPTER 7—ENFORCEMENT OF SUPPORT
ORDERS
SEC. 12361. INTERNAL REVENUE SERVICE COLLECTION OF
ARREARAGES.
(a) COLLECTION OF FEES.—Section 6305(a) of the In-
ternal Revenue Code of 1986 (relating to collection of cer-
tain liability) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(3);
(2) by striking the period at the end of para-
graph (4) and inserting ‘‘, and’’;
(3) by adding at the end the following new para-
graph:
‘‘(5) no additional fee may be assessed for adjust-
ments 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 Welfare’’ 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.
2094
HR 2491 EAS
SEC. 12362. AUTHORITY TO COLLECT SUPPORT FROM FED-
ERAL EMPLOYEES.
(a) CONSOLIDATION AND STREAMLINING OF AUTHORI-
TIES.—Section 459 (42 U.S.C. 659) is amended to read as
follows:
‘‘SEC. 459. CONSENT BY THE UNITED STATES TO INCOME
WITHHOLDING, GARNISHMENT, AND SIMILAR
PROCEEDINGS FOR ENFORCEMENT OF CHILD
SUPPORT AND ALIMONY OBLIGATIONS.
‘‘(a) CONSENT
TO SUPPORT ENFORCEMENT.—Not-
withstanding 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 remuneration for employment) due
from, or payable by, the United States or the District of
Columbia (including any agency, subdivision, or instru-
mentality 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 with-
holding 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
2095
HR 2491 EAS
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 PERSON.—With respect to notice to withhold in-
come pursuant to subsection (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 identi-
fication of the individual and the moneys involved), each
governmental entity specified in subsection (a) shall be sub-
ject 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 Reg-
ister the designation of the agent or agents, iden-
tified by title or position, mailing address, and
telephone number.
2096
HR 2491 EAS
‘‘(2) RESPONSE TO NOTICE OR PROCESS.—If an
agent designated pursuant to paragraph (1) of this
subsection receives notice pursuant to State proce-
dures in effect pursuant to subsection (a)(1) or (b) of
section 466, or is effectively served with any order,
process, or interrogatory, with respect to an individ-
ual’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 no-
tice or service (together with a copy of the notice
or service) to the individual at the duty station
or last-known home address of the individual;
‘‘(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 provi-
sions 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
2097
HR 2491 EAS
process, as provided 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 regula-
tions prescribed under such section; and
‘‘(3) such moneys as remain after compliance
with paragraphs (1) and (2) shall be available to sat-
isfy 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 ali-
mony 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 govern-
ment of the District of Columbia, nor any disbursing
officer shall be liable with respect to any payment
2098
HR 2491 EAS
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 accord-
ance 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 require-
ments of subsection (a) with regard to any individual
shall be subject under any law to any disciplinary ac-
tion 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 regula-
tions 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 Govern-
ment, be vested jointly in the President pro tempore
of the Senate and the Speaker of the House of Rep-
resentatives (or their designees), and
2099
HR 2491 EAS
‘‘(3) the judicial branch of the Federal Govern-
ment, 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 employ-
ment, for purposes of this section—
‘‘(A) consist of—
‘‘(i) compensation paid or payable for
personal services 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 established by the United States
which provides for the payment of pen-
sions, retirement or retired pay, annu-
ities, dependents’ or survivors’ benefits,
2100
HR 2491 EAS
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’ bene-
fits; or
‘‘(V) by the Secretary of Veterans
Affairs as pension, or as compensation
for a service-connected disability or
death; 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 other-
wise, to defray expenses incurred by the in-
dividual 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 (de-
fined by section 101(5) of such title) as nec-
essary for the efficient performance of duty.
2101
HR 2491 EAS
‘‘(2) CERTAIN AMOUNTS EXCLUDED.—In deter-
mining the amount of any moneys due from, or pay-
able 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, de-
ducted from the remuneration or other payment
involved, including Federal employment taxes,
and fines and forfeitures ordered by court-mar-
tial;
‘‘(C) are properly withheld for Federal,
State, or local income tax purposes, if the with-
holding 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 permitted only when the individual
presents evidence of a tax obligation which sup-
ports the additional withholding);
‘‘(D) are deducted as health insurance pre-
miums;
2102
HR 2491 EAS
‘‘(E) are deducted as normal retirement
contributions (not including amounts deducted
for supplementary coverage); 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 Serv-
ice, the Postal Rate Commission, any Federal cor-
poration created by an Act of Congress that is wholly
owned by the Federal Government, and the govern-
ments 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 modi-
fication, issued by a court or an administrative agen-
cy of competent jurisdiction, for the support and
maintenance of a child, including a child who has at-
2103
HR 2491 EAS
tained the age of majority under the law of the issu-
ing 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 peri-
odic 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 pur-
suant to a decree, order, or judgment issued in
accordance with applicable State law by a court
of competent jurisdiction.
‘‘(B) EXCEPTIONS.—Such term does not in-
clude—
‘‘(i) any child support; or
2104
HR 2491 EAS
‘‘(ii) any payment or transfer of prop-
erty or its value by an individual to the
spouse or a former spouse of the individual
in compliance with any community prop-
erty settlement, equitable distribution of
property, or other division of property be-
tween spouses or former spouses.
‘‘(4) PRIVATE PERSON.—The term ‘private per-
son’ 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 agen-
cy of competent jurisdiction in any State,
territory, or possession of the United States;
‘‘(ii) a court or an administrative
agency of competent jurisdiction in any for-
eign country with which the United States
has entered into an agreement which re-
quires the United States to honor the proc-
ess; or
2105
HR 2491 EAS
‘‘(iii) an authorized official pursuant
to an order of such a court or an adminis-
trative agency of competent 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 ‘‘section 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 sub-
paragraph (B);
2106
HR 2491 EAS
(B) by striking the period at the end of sub-
paragraph (C) and inserting ‘‘; and’’; and
(C) by adding after subparagraph (C) the
following: new subparagraph
‘‘(D) any administrative or judicial tribu-
nal of a State competent to enter orders for sup-
port or maintenance (including a State agency
administering a program under a State plan ap-
proved under part D of title IV of the Social Se-
curity Act), and, for purposes of this subpara-
graph, 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 de-
fined 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 Secu-
rity Act (42 U.S.C. 662(b)))’’ and inserting ‘‘(as
defined in section 459(i)(2) of the Social Secu-
rity 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 Secu-
2107
HR 2491 EAS
rity Act (42 U.S.C. 662(c)))’’ and inserting ‘‘(as
defined in section 459(i)(3) of the Social Secu-
rity 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 es-
tablished pursuant to section 454B of the Social
Security Act or other public payee designated 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 suffi-
cient’’.
(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 par-
ent of the child, the provisions of this section shall not
2108
HR 2491 EAS
apply, and the case shall be subject to the provisions of sec-
tion 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. 12363. ENFORCEMENT OF CHILD SUPPORT OBLIGA-
TIONS OF MEMBERS OF THE ARMED FORCES.
(a) AVAILABILITY OF LOCATOR INFORMATION.—
(1) MAINTENANCE OF ADDRESS INFORMATION.—
The Secretary of Defense shall establish a centralized
personnel locator service that includes the address of
each member of the Armed Forces under the jurisdic-
tion 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 loca-
tor service shall be the residential address of that
member.
(B) DUTY
ADDRESS.—The address for a
member of the Armed Forces shown in the loca-
2109
HR 2491 EAS
tor service shall be the duty address of that mem-
ber in the case of a member—
(i) who is permanently assigned over-
seas, 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 residential address (or a new
duty address, in the case of a member covered by
paragraph (2)(B)), the Secretary concerned shall up-
date the locator service to indicate the new address of
the member.
(4) AVAILABILITY OF INFORMATION.—The Sec-
retary of Defense shall make information regarding
the address of a member of the Armed Forces listed
in the locator service available, on request, to the Fed-
eral Parent Locator Service established under section
453 of the Social Security Act.
(b) FACILITATING GRANTING OF LEAVE FOR ATTEND-
ANCE AT HEARINGS.—
2110
HR 2491 EAS
(1) REGULATIONS.—The Secretary of each mili-
tary department, and the Secretary of Transportation
with respect to the Coast Guard when it is not operat-
ing as a service in the Navy, shall prescribe regula-
tions 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 at-
tend a hearing described in paragraph (2);
(B) the member is not serving in or with a
unit deployed in a contingency operation (as de-
fined in section 101 of title 10, United States
Code); and
(C) the exigencies of military service (as de-
termined by the Secretary concerned) do not oth-
erwise require that such leave not be granted.
(2) COVERED
HEARINGS.—Paragraph (1) ap-
plies 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.
2111
HR 2491 EAS
(3) DEFINITIONS.—For purposes of this sub-
section—
(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 mean-
ing given such term in section 459(i) of the So-
cial Security Act (42 U.S.C. 659(i)).
(c) PAYMENT OF MILITARY RETIRED PAY IN COMPLI-
ANCE 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 subsections (j) and (k), respectively; and
(B) by inserting after subsection (h) the fol-
lowing 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 concerned 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
2112
HR 2491 EAS
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 section 407(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 preced-
ing 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 arrear-
ages set forth in that order as well as to amounts of child
support that currently become due.’’.
2113
HR 2491 EAS
(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. 12364. 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 follow-
ing new subsection:
‘‘(g) LAWS VOIDING FRAUDULENT TRANSFERS.—In
order to satisfy 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 sup-
port debtor with respect to which such a prima facie
case is established, the State must—
2114
HR 2491 EAS
‘‘(A) seek to void such transfer; or
‘‘(B) obtain a settlement in the best inter-
ests of the child support creditor.’’.
SEC. 12365. WORK REQUIREMENT FOR PERSONS OWING
PAST-DUE CHILD SUPPORT.
(a) IN GENERAL.—Section 466(a) of the Social Secu-
rity Act (42 U.S.C. 666(a)), as amended by sections 12315,
12317(a), and 12323 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 re-
spect to a child receiving 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
2115
HR 2491 EAS
in such work activities (as defined in sec-
tion 406(d)) as the court, or, at the option
of the State, the State agency administering
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, de-
termined 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. 12366. DEFINITION OF SUPPORT ORDER.
Section 453 (42 U.S.C. 653) as amended by sections
12316 and 12345(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 temporary, final, or subject to modifica-
tion, issued by a court or an administrative agency of com-
petent jurisdiction, for the support and maintenance of a
2116
HR 2491 EAS
child, including a child who has attained the age of major-
ity 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 reimburse-
ment, and which may include related costs and fees, interest
and penalties, income withholding, attorneys’ fees, and
other relief.’’.
SEC. 12367. 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 BU-
REAUS.—
‘‘(A) IN GENERAL.—Procedures (subject to
safeguards pursuant to subparagraph (B)) re-
quiring the State to report periodically to
consumer reporting agencies (as defined in sec-
tion 603(f) of the Fair Credit Reporting Act (15
U.S.C. 1681a(f)) the name of any noncustodial
parent who is delinquent in the payment of sup-
port, and the amount of overdue support owed by
such parent.
‘‘(B) SAFEGUARDS.—Procedures ensuring
that, in carrying out subparagraph (A), infor-
mation with respect to a noncustodial parent is
reported—
2117
HR 2491 EAS
‘‘(i) only after such parent has been af-
forded all due process required under State
law, including notice and a reasonable op-
portunity to contest the accuracy of such in-
formation; and
‘‘(ii) only to an entity that has fur-
nished evidence satisfactory to the State
that the entity is a consumer reporting
agency (as so defined).’’.
SEC. 12368. 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 over-
due 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 under-
lying order.’’.
2118
HR 2491 EAS
SEC. 12369. STATE LAW AUTHORIZING SUSPENSION OF LI-
CENSES.
Section 466(a) (42 U.S.C. 666(a)), as amended by sec-
tions 12315, 12317(a), 12323, and 12365 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 rec-
reational licenses of individuals owing overdue sup-
port or failing, after receiving appropriate notice, to
comply with subpoenas or warrants relating to pater-
nity or child support proceedings.’’.
SEC. 12370. INTERNATIONAL CHILD SUPPORT ENFORCE-
MENT.
(a) AUTHORITY FOR INTERNATIONAL AGREEMENTS.—
Part D of title IV, as amended by section 362(a) of this
Act, is amended by adding after section 459 the following
new section:
‘‘SEC. 459A. INTERNATIONAL CHILD SUPPORT ENFORCE-
MENT.
‘‘(a) AUTHORITY FOR DECLARATIONS.—
‘‘(1) DECLARATION.—The Secretary of State,
with the concurrence of the Secretary of Health and
Human Services, is authorized to declare any foreign
2119
HR 2491 EAS
country (or a political subdivision thereof) to be a
foreign reciprocating country if the foreign country
has established, or undertakes to establish, procedures
for the establishment and enforcement of duties of
support owed to obligees who are residents of the
United States, and such procedures are substantially
in conformity with the standards prescribed under
subsection (b).
‘‘(2) REVOCATION.—A declaration with respect
to a foreign country made pursuant to paragraph (1)
may be revoked if the Secretaries of State and Health
and Human Services determine that—
‘‘(A) the procedures established by the for-
eign nation regarding the establishment and en-
forcement of duties of support have been so
changed, or the foreign nation’s implementation
of such procedures is so unsatisfactory, that such
procedures do not meet the criteria for such a
declaration; or
‘‘(B) continued operation of the declaration
is not consistent with the purposes of this part.
‘‘(3) FORM
OF
DECLARATION.—A declaration
under paragraph (1) may be made in the form of an
international agreement, in connection with an inter-
2120
HR 2491 EAS
national agreement or corresponding foreign declara-
tion, or on a unilateral basis.
‘‘(b) STANDARDS FOR FOREIGN SUPPORT ENFORCE-
MENT PROCEDURES.—
‘‘(1) MANDATORY ELEMENTS.—Child support en-
forcement procedures of a foreign country which may
be the subject of a declaration pursuant to subsection
(a)(1) shall include the following elements:
‘‘(A) The foreign country (or political sub-
division thereof) has in effect procedures, avail-
able to residents of the United States—
‘‘(i) for establishment of paternity, and
for establishment of orders of support for
children and custodial parents; and
‘‘(ii) for enforcement of orders to pro-
vide support to children and custodial par-
ents, including procedures for collection and
appropriate distribution of support pay-
ments under such orders.
‘‘(B) The procedures described in subpara-
graph (A), including legal and administrative
assistance, are provided to residents of the Unit-
ed States at no cost.
2121
HR 2491 EAS
‘‘(C) An agency of the foreign country is
designated as a Central Authority responsible
for—
‘‘(i) facilitating child support enforcement in
cases involving residents of the foreign nation and
residents of the United States; and
‘‘(ii) ensuring compliance with the standards es-
tablished pursuant to this subsection.
‘‘(2) ADDITIONAL ELEMENTS.—The Secretary of
Health and Human Services and the Secretary of
State, in consultation with the States, may establish
such additional standards as may be considered nec-
essary to further the purposes of this section.
‘‘(c) DESIGNATION OF UNITED STATES CENTRAL AU-
THORITY.—It shall be the responsibility of the Secretary of
Health and Human Services to facilitate child support en-
forcement in cases involving residents of the United States
and residents of foreign nations that are the subject of a
declaration under this section, by activities including—
‘‘(1) development of uniform forms and proce-
dures for use in such cases;
‘‘(2) notification of foreign reciprocating coun-
tries of the State of residence of individuals sought for
support enforcement purposes, on the basis of infor-
2122
HR 2491 EAS
mation provided by the Federal Parent Locator Serv-
ice; and
‘‘(3) such other oversight, assistance, and coordi-
nation activities as the Secretary may find necessary
and appropriate.
‘‘(d) EFFECT ON OTHER LAWS.—States may enter
into reciprocal arrangements for the establishment and en-
forcement of child support obligations with foreign countries
that are not the subject of a declaration pursuant to sub-
section (a), to the extent consistent with Federal law.’’.
(b) STATE PLAN REQUIREMENT.—Section 454 (42
U.S.C. 654), as amended by sections 12301(b), 12303(a),
12312(b), 12313(a), 12333, and 12343(b) of this Act, is
amended—
(1) by striking ‘‘and’’ at the end of paragraph
(29);
(2) by striking the period at the end of para-
graph (30) and inserting ‘‘; and’’; and
(3) by adding after paragraph (30) the following
new paragraph:
‘‘(31)(A) provide that any request for services
under this part by a foreign reciprocating country or
a foreign country with which the State has an ar-
rangement described in section 459A(d)(2) shall be
treated as a request by a State;
2123
HR 2491 EAS
‘‘(B) provide, at State option, notwithstanding
paragraph (4) or any other provision of this part, for
services under the plan for enforcement of a spousal
support order not described in paragraph (4)(B) en-
tered by such a country (or subdivision); and
‘‘(C) provide that no applications will be re-
quired from, and no costs will be assessed for such
services against, the foreign reciprocating country or
foreign obligee (but costs may at State option be as-
sessed against the obligor).’’.
SEC. 12371. FINANCIAL INSTITUTION DATA MATCHES.
Section 466(a) (42 U.S.C. 666(a)), as amended by sec-
tions 12315, 12317(a), 12323, 12365, and 12369 of this Act,
is amended by adding at the end the following new para-
graph:
‘‘(17) FINANCIAL INSTITUTION DATA MATCHES.—
‘‘(A) IN GENERAL.—Procedures under which
the State agency shall enter into agreements with
financial institutions doing business in the
State—
‘‘(i) to develop and operate, in coordi-
nation with such financial institutions, a
data match system, using automated data
exchanges to the maximum extent feasible,
in which each such financial institution is
2124
HR 2491 EAS
required to provide for each calendar quar-
ter the name, record address, social security
number or other taxpayer identification
number, and other identifying information
for each noncustodial parent who maintains
an account at such institution and who
owes past-due support, as identified by the
State by name and social security number
or other taxpayer identification number;
and
‘‘(ii) in response to a notice of lien or
levy, encumber or surrender, as the case
may be, assets held by such institution on
behalf of any noncustodial parent who is
subject to a child support lien pursuant to
paragraph (4).
‘‘(B) REASONABLE FEES.—The State agen-
cy may pay a reasonable fee to a financial insti-
tution for conducting the data match provided
for in subparagraph (A)(i), not to exceed the ac-
tual costs incurred by such financial institution.
‘‘(C) LIABILITY.—A financial institution
shall not be liable under any Federal or State
law to any person—
2125
HR 2491 EAS
‘‘(i) for any disclosure of information
to the State agency under subparagraph
(A)(i);
‘‘(ii) for encumbering or surrendering
any assets held by such financial institution
in response to a notice of lien or levy issued
by the State agency as provided for in sub-
paragraph (A)(ii); or
‘‘(iii) for any other action taken in
good faith to comply with the requirements
of subparagraph (A).
‘‘(D) DEFINITIONS.—For purposes of this
paragraph—
‘‘(i) 
FINANCIAL
INSTITUTION.—The
term ‘financial institution’ means any Fed-
eral or State commercial savings bank, in-
cluding savings association or cooperative
bank, Federal- or State-chartered credit
union, benefit association, insurance com-
pany, safe deposit company, money-market
mutual fund, or any similar entity author-
ized to do business in the State; and
‘‘(ii) ACCOUNT.—The term ‘account’
means a demand deposit account, checking
or negotiable withdrawal order account,
2126
HR 2491 EAS
savings account, time deposit account, or
money-market mutual fund account.’’.
SEC. 12372. ENFORCEMENT OF ORDERS AGAINST PATERNAL
OR MATERNAL GRANDPARENTS IN CASES OF
MINOR PARENTS.
Section 466(a) (42 U.S.C. 666(a)), as amended by sec-
tions 12315, 12317(a), 12323, 12365, 12369, and 12371 of
this Act, is amended by adding at the end the following
new paragraph:
‘‘(18) ENFORCEMENT OF ORDERS AGAINST PA-
TERNAL OR MATERNAL GRANDPARENTS.—Procedures
under which, at the State’s option, any child support
order enforced under this part with respect to a child
of minor parents, if the custodial parents of such
child is receiving assistance under the State program
under part A, shall be enforceable, jointly and sever-
ally, against the parents of the noncustodial parents
of such child.’’.
CHAPTER 8—MEDICAL SUPPORT
SEC. 12376. CORRECTION TO ERISA DEFINITION OF MEDI-
CAL CHILD SUPPORT ORDER.
(a) IN GENERAL.—Section 609(a)(2)(B) of the Em-
ployee Retirement Income Security Act of 1974 (29 U.S.C.
1169(a)(2)(B)) is amended—
2127
HR 2491 EAS
(1) by striking ‘‘issued by a court of competent
jurisdiction’’;
(2) by striking the period at the end of clause
(ii) and inserting a comma; and
(3) by adding, after and below clause (ii), the
following:
‘‘if such judgment, decree, or order (I) is issued
by a court of competent jurisdiction or (II) is is-
sued through an administrative process estab-
lished under State law and has the force and ef-
fect of law under applicable State law.’’.
(b) EFFECTIVE DATE.—
(1) IN
GENERAL.—The amendments made by
this section shall take effect on the date of the enact-
ment of this Act.
(2) PLAN AMENDMENTS NOT REQUIRED UNTIL
JANUARY 1, 1996.—Any amendment to a plan required
to be made by an amendment made by this section
shall not be required to be made before the 1st plan
year beginning on or after January 1, 1996, if—
(A) during the period after the date before
the date of the enactment of this Act and before
such 1st plan year, the plan is operated in ac-
cordance with the requirements of the amend-
ments made by this section; and
2128
HR 2491 EAS
(B) such plan amendment applies retro-
actively to the period after the date before the
date of the enactment of this Act and before such
1st plan year.
A plan shall not be treated as failing to be operated
in accordance with the provisions of the plan merely
because it operates in accordance with this para-
graph.
SEC. 12377. ENFORCEMENT OF ORDERS FOR HEALTH CARE
COVERAGE.
Section 466(a) (42 U.S.C. 666(a)), as amended by sec-
tions 12315, 12317(a), 12323, 12365, 12369, 12371, and
12372 of this Act, is amended by adding at the end the
following new paragraph:
‘‘(19) HEALTH
CARE
COVERAGE.—Procedures
under which all child support orders enforced pursu-
ant to this part shall include a provision for the
health care coverage of the child, and in the case in
which a noncustodial parent provides such coverage
and changes employment, and the new employer pro-
vides health care coverage, the State agency shall
transfer notice of the provision to the employer, which
notice shall operate to enroll the child in the
noncustodial 
parent’s 
health 
plan, 
unless 
the
noncustodial parent contests the notice.’’.
2129
HR 2491 EAS
CHAPTER 9—ENHANCING RESPONSIBIL-
ITY AND OPPORTUNITY FOR NON-RES-
IDENTIAL PARENTS
SEC. 12381. GRANTS TO STATES FOR ACCESS AND VISITA-
TION PROGRAMS.
Part D of title IV (42 U.S.C. 651–669) is amended
by adding at the end the following:
‘‘SEC. 469A. GRANTS TO STATES FOR ACCESS AND VISITA-
TION PROGRAMS.
‘‘(a) IN GENERAL.—The Administration for Children
and Families shall make grants under this section to enable
States to establish and administer programs to support and
facilitate noncustodial parents’ access to and visitation of
their children, by means of activities including mediation
(both voluntary and mandatory), counseling, education, de-
velopment of parenting plans, visitation enforcement (in-
cluding monitoring, supervision and neutral drop-off and
pickup), and development of guidelines for visitation and
alternative custody arrangements.
‘‘(b) AMOUNT OF GRANT.—The amount of the grant
to be made to a State under this section for a fiscal year
shall be an amount equal to the lesser of—
‘‘(1) 90 percent of State expenditures during the
fiscal year for activities described in subsection (a); or
2130
HR 2491 EAS
‘‘(2) the allotment of the State under subsection
(c) for the fiscal year.
‘‘(c) ALLOTMENTS TO STATES.—
‘‘(1) IN GENERAL.—The allotment of a State for
a fiscal year is the amount that bears the same ratio
to the amount appropriated for grants under this sec-
tion for the fiscal year as the number of children in
the State living with only 1 biological parent bears
to the total number of such children in all States.
‘‘(2) MINIMUM
ALLOTMENT.—The Administra-
tion for Children and Families shall adjust allotments
to States under paragraph (1) as necessary to ensure
that no State is allotted less than—
‘‘(A) $50,000 for fiscal year 1996 or 1997;
or
‘‘(B) $100,000 for any succeeding fiscal
year.
‘‘(d) NO SUPPLANTATION OF STATE EXPENDITURES
FOR SIMILAR ACTIVITIES.—A State to which a grant is
made under this section may not use the grant to supplant
expenditures by the State for activities specified in sub-
section (a), but shall use the grant to supplement such ex-
penditures at a level at least equal to the level of such ex-
penditures for fiscal year 1995.
2131
HR 2491 EAS
‘‘(e) STATE ADMINISTRATION.—Each State to which a
grant is made under this section—
‘‘(1) may administer State programs funded
with the grant, directly or through grants to or con-
tracts with courts, local public agencies, or non-profit
private entities;
‘‘(2) shall not be required to operate such pro-
grams on a statewide basis; and
‘‘(3) shall monitor, evaluate, and report on such
programs in accordance with regulations prescribed
by the Secretary.’’.
CHAPTER 10—EFFECT OF ENACTMENT
SEC. 12391. EFFECTIVE DATES.
(a) IN GENERAL.—Except as otherwise specifically
provided (but subject to subsections (b) and (c))—
(1) the provisions of this subtitle requiring the
enactment or amendment of State laws under section
466 of the Social Security Act, or revision of State
plans under section 454 of such Act, shall be effective
with respect to periods beginning on and after Octo-
ber 1, 1996; and
(2) all other provisions of this subtitle shall be-
come effective upon the date of the enactment of this
Act.
2132
HR 2491 EAS
(b) GRACE PERIOD FOR STATE LAW CHANGES.—The
provisions of this subtitle shall become effective with respect
to a State on the later of—
(1) the date specified in this subtitle, or
(2) the effective date of laws enacted by the legis-
lature of such State implementing such provisions,
but in no event later than the 1st day of the 1st calendar
quarter beginning after the close of the 1st regular session
of the State legislature that begins after the date of the en-
actment of this Act. For purposes of the previous sentence,
in the case of a State that has a 2-year legislative session,
each year of such session shall be deemed to be a separate
regular session of the State legislature.
(c) GRACE PERIOD
FOR STATE CONSTITUTIONAL
AMENDMENT.—A State shall not be found out of compliance
with any requirement enacted by this subtitle if the State
is unable to so comply without amending the State constitu-
tion until the earlier of—
(1) 1 year after the effective date of the necessary
State constitutional amendment; or
(2) 5 years after the date of the enactment of this
Act.
2133
HR 2491 EAS
Subtitle D—Restricting Welfare and
Public Benefits for Aliens
CHAPTER 1—ELIGIBILITY FOR FEDERAL
BENEFITS
SEC. 12401. ALIENS WHO ARE NOT QUALIFIED ALIENS IN-
ELIGIBLE FOR FEDERAL PUBLIC BENEFITS.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law and except as provided in subsection (b), an
alien who is not a qualified alien (as defined section 12431)
is not eligible for any Federal public benefit (as defined in
subsection (c)).
(b) EXCEPTIONS.—Subsection (a) shall not apply with
respect to the following Federal public benefits:
(1) Emergency medical services under title XIX
or XXI of the Social Security Act.
(2) Short-term, non-cash, in-kind emergency dis-
aster relief.
(3)(A) Public health assistance for immuniza-
tions.
(B) Public health assistance for testing and
treatment of a serious communicable disease if
the Secretary of Health and Human Services de-
termines that it is necessary to prevent the
spread of such disease.
2134
HR 2491 EAS
(4) Programs, services, or assistance (such as
soup kitchens, crisis counseling and intervention, and
short-term shelter) specified by the Attorney General,
in the Attorney General’s sole and unreviewable dis-
cretion after consultation with appropriate Federal
agencies and departments, which (A) deliver in-kind
services at the community level, including through
public or private nonprofit agencies; (B) do not con-
dition the provision of assistance, the amount of as-
sistance provided, or the cost of assistance provided
on the individual recipient’s income or resources; and
(C) are necessary for the protection of life or safety.
(5) Programs for housing or community develop-
ment assistance or financial assistance administered
by the Secretary of Housing and Urban Development,
any program under title V of the Housing Act of
1949, or any assistance under section 306C of the
Consolidated Farm and Rural Development Act, to
the extent that the alien is receiving such a benefit on
the date of the enactment of this Act.
(c) FEDERAL PUBLIC BENEFIT DEFINED.—
(1) Except as provided in paragraph (2), for
purposes of this subtitle the term ‘‘Federal public ben-
efit’’ means a Federal public benefit providing direct
spending for—
2135
HR 2491 EAS
(A) any grant, contract, loan, professional
license, or commercial license provided by an
agency of the United States or by appropriated
funds of the United States; and
(B) any retirement, welfare, health, disabil-
ity, public or assisted housing, post-secondary
education, food assistance, unemployment bene-
fit, or any other similar benefit for which pay-
ments or assistance are provided to an individ-
ual, household, or family eligibility unit by an
agency of the United States or by appropriated
funds of the United States.
(2) Such term shall not apply—
(A) to any contract, professional license, or
commercial license for a nonimmigrant whose
visa for entry is related to such employment in
the United States; or
(B) with respect to benefits for an alien who
as a work authorized nonimmigrant or as an
alien lawfully admitted for permanent residence
under the Immigration and Nationality Act
qualified for such benefits and for whom the
United States under reciprocal treaty agreements
is required to pay benefits, as determined by the
2136
HR 2491 EAS
Attorney General, after consultation with the
Secretary of State.
SEC. 12402. LIMITED ELIGIBILITY OF CERTAIN QUALIFIED
ALIENS FOR CERTAIN FEDERAL PROGRAMS.
(a) LIMITED ELIGIBILITY FOR SPECIFIED FEDERAL
PROGRAMS.—
(1) IN
GENERAL.—Notwithstanding any other
provision of law and except as provided in paragraph
(2), an alien who is a qualified alien (as defined in
section 12431) is not eligible for any specified Federal
program (as defined in paragraph (3)).
(2) EXCEPTIONS.—
(A) TIME-LIMITED EXCEPTION FOR REFU-
GEES AND ASYLEES.—Paragraph (1) shall not
apply to an alien until 5 years after the date—
(i) an alien is admitted to the United
States as a refugee under section 207 of the
Immigration and Nationality Act;
(ii) an alien is granted asylum under
section 208 of such Act; or
(iii) an alien’s deportation is withheld
under section 243(h) of such Act.
(B) 
CERTAIN
PERMANENT
RESIDENT
ALIENS.—Paragraph (1) shall not apply to an
alien who—
2137
HR 2491 EAS
(i) is lawfully admitted to the United
States for permanent residence under the
Immigration and Nationality Act; and
(ii)(I) has worked 40 qualifying quar-
ters of coverage as defined under title II of
the Social Security Act, and (II) did not re-
ceive any Federal means-tested public bene-
fit (as defined in section 12403(c)) during
any such quarter.
(C) VETERAN
AND
ACTIVE
DUTY
EXCEP-
TION.—Paragraph (1) shall not apply to an
alien who is lawfully residing in any State and
is—
(i) a veteran (as defined in section 101
of title 38, United States Code) with a dis-
charge characterized as an honorable dis-
charge and not on account of alienage,
(ii) on active duty (other than active
duty for training) in the Armed Forces of
the United States, or
(iii) the spouse or unmarried depend-
ent child of an individual described in
clause (i) or (ii).
(D) TRANSITION
FOR
ALIENS
CURRENTLY
RECEIVING
BENEFITS.—Paragraph 
(1) 
shall
2138
HR 2491 EAS
apply to the eligibility of an alien for a program
for months beginning on or after January 1,
1997, if, on the date of the enactment of this Act,
the alien is lawfully residing in any State and
is receiving benefits under such program on the
date of the enactment of this Act.
(3) SPECIFIED FEDERAL PROGRAM DEFINED.—
For purposes of this subtitle, the term ‘‘specified Fed-
eral program’’ means any of the following:
(A) SSI.—The supplemental security in-
come program under title XVI of the Social Se-
curity Act.
(B) FOOD STAMPS.—The food stamp pro-
gram as defined in section 3(h) of the Food
Stamp Act of 1977.
(b) LIMITED ELIGIBILITY FOR DESIGNATED FEDERAL
PROGRAMS.—
(1) IN
GENERAL.—Notwithstanding any other
provision of law and except as provided in section
12403 and paragraph (2), a State is authorized to de-
termine the eligibility of an alien who is a qualified
alien (as defined in section 12431) for any designated
Federal program (as defined in paragraph (3)).
2139
HR 2491 EAS
(2) EXCEPTIONS.—Qualified aliens under this
paragraph shall be eligible for any designated Federal
program.
(A) TIME-LIMITED EXCEPTION FOR REFU-
GEES AND ASYLEES.—
(i) An alien who is admitted to the
United States as a refugee under section
207 of the Immigration and Nationality
Act until 5 years after the date of an alien’s
entry into the United States.
(ii) An alien who is granted asylum
under section 208 of such Act until 5 years
after the date of such grant of asylum.
(iii) An alien whose deportation is
being withheld under section 243(h) of such
Act until 5 years after such withholding.
(B) 
CERTAIN
PERMANENT
RESIDENT
ALIENS.—An alien who—
(i) is lawfully admitted to the United
States for permanent residence under the
Immigration and Nationality Act; and
(ii)(I) has worked 40 qualifying quar-
ters of coverage to be a fully insured indi-
vidual for old-age retirement benefits under
title II of the Social Security Act, (II) did
2140
HR 2491 EAS
not receive any Federal means-tested public
benefit (as defined in section 12403(c)) dur-
ing any such quarter, and (III) at the time
of application is otherwise eligible for such
benefits.
(C) VETERAN
AND
ACTIVE
DUTY
EXCEP-
TION.—An alien who is lawfully residing in any
State and is—
(i) a veteran (as defined in section 101
of title 38, United States Code) with a dis-
charge characterized as an honorable dis-
charge and not on account of alienage,
(ii) on active duty (other than active
duty for training) in the Armed Forces of
the United States, or
(iii) the spouse or unmarried depend-
ent child of an individual described in
clause (i) or (ii).
(D) TRANSITION
FOR
THOSE
CURRENTLY
RECEIVING BENEFITS.—An alien who on the date
of the enactment of this Act is lawfully residing
in any State and is receiving benefits under such
program on the date of the enactment of this Act
shall continue to be eligible to receive such bene-
fits until January 1, 1997.
2141
HR 2491 EAS
(3) 
DESIGNATED
FEDERAL
PROGRAM
DE-
FINED.—For purposes of this subtitle, the term ‘‘des-
ignated Federal program’’ means any of the follow-
ing:
(A) TEMPORARY
ASSISTANCE
FOR
NEEDY
FAMILIES.—The program of block grants to
States for temporary assistance for needy fami-
lies under part A of title IV of the Social Secu-
rity Act.
(B) SOCIAL SERVICES BLOCK GRANT.—The
program of block grants to States for social serv-
ices under title XX of the Social Security Act.
(C) MEDICAID AND MEDIGRANT.—The pro-
gram of medical assistance under title XIX and
XXI of the Social Security Act.
SEC. 12403. FIVE-YEAR LIMITED ELIGIBILITY OF QUALIFIED
ALIENS FOR FEDERAL MEANS-TESTED PUB-
LIC BENEFIT.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law and except as provided in subsection (b), an
alien who is a qualified alien (as defined in section 12431)
and who enters the United States on or after the date of
the enactment of this Act is not eligible for any Federal
means-tested public benefit (as defined in subsection (c)) for
a period of five years beginning on the date of the alien’s
2142
HR 2491 EAS
entry into the United States with a status within the mean-
ing of the term ‘‘qualified alien’’.
(b) EXCEPTIONS.—The limitation under subsection (a)
shall not apply to the following aliens:
(1) EXCEPTION FOR REFUGEES AND ASYLEES.—
(A) An alien who is admitted to the United
States as a refugee under section 207 of the Im-
migration and Nationality Act.
(B) An alien who is granted asylum under
section 208 of such Act.
(C) An alien whose deportation is being
withheld under section 243(h) of such Act.
(2) VETERAN AND ACTIVE DUTY EXCEPTION.—An
alien who is lawfully residing in any State and is—
(A) a veteran (as defined in section 101 of
title 38, United States Code) with a discharge
characterized as an honorable discharge and not
on account of alienage,
(B) on active duty (other than active duty
for training) in the Armed Forces of the United
States, or
(C) the spouse or unmarried dependent
child of an individual described in subparagraph
(A) or (B).
2143
HR 2491 EAS
(c) FEDERAL MEANS-TESTED PUBLIC BENEFIT DE-
FINED.—
(1) Except as provided in paragraph (2), for
purposes of this subtitle, the term ‘‘Federal means-
tested public benefit’’ means a Federal public benefit
providing direct spending (including cash, medical,
housing, and food assistance and social services) by
the Federal Government in which the eligibility of an
individual, household, or family eligibility unit for
benefits, or the amount of such benefits, or both are
determined on the basis of income, resources, or fi-
nancial need of the individual, household, or unit.
(2) Such term does not include the following:
(A) Emergency medical services under title
XIX or XXI of the Social Security Act.
(B) Short-term, non-cash, in-kind emer-
gency disaster relief.
(C) Assistance or benefits under the Na-
tional School Lunch Act.
(D) Assistance or benefits under the Child
Nutrition Act of 1966.
(E)(i) Public health assistance for immuni-
zations.
(ii) Public health assistance for testing
and treatment of a serious communicable
2144
HR 2491 EAS
disease if the Secretary of Health and
Human Services determines that it is nec-
essary to prevent the spread of such disease.
(F) Payments for foster care and adoption
assistance under part B of title IV of the Social
Security Act for a child who would, in the ab-
sence of subsection (a), be eligible to have such
payments made on the child’s behalf under such
part, but only if the foster or adoptive parent or
parents of such child are not described under
subsection (a).
(G) Programs, services, or assistance (such
as soup kitchens, crisis counseling and interven-
tion, and short-term shelter) specified by the At-
torney General, in the Attorney General’s sole
and unreviewable discretion after consultation
with appropriate Federal agencies and depart-
ments, which (i) deliver in-kind services at the
community level, including through public or
private nonprofit agencies; (ii) do not condition
the provision of assistance, the amount of assist-
ance provided, or the cost of assistance provided
on the individual recipient’s income or resources;
and (iii) are necessary for the protection of life
or safety.
2145
HR 2491 EAS
(H) Programs of student assistance under
titles IV, V, IX, and X of the Higher Education
Act of 1965.
(I) Means-tested programs under the Ele-
mentary and Secondary Education Act of 1965.
CHAPTER 2—ATTRIBUTION OF INCOME
AND AFFIDAVITS OF SUPPORT
SEC. 12421. ATTRIBUTION OF SPONSOR’S INCOME AND RE-
SOURCES TO ALIEN.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law and except as provided in subsection (c), in
determining the eligibility and the amount of benefits of
an alien for any means-tested public benefits program (as
defined in subsection (e)) the income and resources of the
alien shall be deemed to include the following:
(1) The income and resources of any person who
executed an affidavit of support pursuant to section
213A of the Immigration and Nationality Act (as
added by section 12422) in behalf of such alien.
(2) The income and resources of the spouse (if
any) of the person.
(b) APPLICATION.—Subsection (a) shall apply with re-
spect to an alien until such time as the alien achieves Unit-
ed States citizenship through naturalization pursuant to
2146
HR 2491 EAS
chapter 2 of title III of the Immigration and Nationality
Act.
(c) EXCEPTIONS.—Subsection (a) shall not apply with
respect to the following Federal public benefits:
(1) Emergency medical services under title XIX
or XXI of the Social Security Act.
(2) Short-term, non-cash, in-kind emergency dis-
aster relief.
(3) Assistance or benefits under the National
School Lunch Act.
(4) Assistance or benefits under the Child Nutri-
tion Act of 1966.
(5)(A) Public health assistance for immuniza-
tions.
(B) Public health assistance for testing and
treatment of a serious communicable disease if
the Secretary of Health and Human Services de-
termines that it is necessary to prevent the
spread of such disease.
(6) Payments for foster care and adoption assist-
ance under part B of title IV of the Social Security
Act for a child who would, in the absence of sub-
section (a), be eligible to have such payments made on
the child’s behalf under such part, but only if the fos-
2147
HR 2491 EAS
ter or adoptive parent or parents of such child are not
described under subsection (a).
(7) Programs, services, or assistance (such as
soup kitchens, crisis counseling and intervention, and
short-term shelter) specified by the Attorney General,
in the Attorney General’s sole and unreviewable dis-
cretion after consultation with appropriate Federal
agencies and departments, which (A) deliver in-kind
services at the community level, including through
public or private nonprofit agencies; (B) do not con-
dition the provision of assistance, the amount of as-
sistance provided, or the cost of assistance provided
on the individual recipient’s income or resources; and
(C) are necessary for the protection of life or safety.
(8) Programs of student assistance under titles
IV, V, IX, and X of the Higher Education Act of
1965.
(d) REVIEW OF INCOME AND RESOURCES OF ALIEN
UPON REAPPLICATION.—Whenever an alien is required to
reapply for benefits under any means-tested public benefits
program, the applicable agency shall review the income and
resources attributed to the alien under subsection (a).
(e) MEANS-TESTED PUBLIC BENEFITS PROGRAM DE-
FINED.—The term ‘‘means-tested public benefits program’’
means a program of Federal public benefits providing di-
2148
HR 2491 EAS
rect spending (including cash, medical, housing, and food
assistance and social services) by the Federal government
in which the eligibility of an individual, household, or fam-
ily eligibility unit for benefits, or the amount of such bene-
fits, or both are determined on the basis of income, re-
sources, or financial need of the individual, household, or
unit.
(f) APPLICATION.—
(1) If on the date of the enactment of this Act,
a means-tested public benefits program attributes a
sponsor’s income and resources to an alien in deter-
mining the alien’s eligibility and the amount of bene-
fits for an alien, this section shall apply to any such
determination beginning on the day after the date of
the enactment of this Act.
(2) If on the date of the enactment of this Act,
a means-tested public benefits program does not at-
tribute a sponsor’s income and resources to an alien
in determining the alien’s eligibility and the amount
of benefits for an alien, this section shall apply to any
such determination beginning 180 days after the date
of the enactment of this Act.
2149
HR 2491 EAS
SEC. 12422. REQUIREMENTS FOR SPONSOR’S AFFIDAVIT OF
SUPPORT.
(a) IN GENERAL.—Title II of the Immigration and
Nationality Act is amended by inserting after section 213
the following new section:
‘‘REQUIREMENTS FOR SPONSOR’S AFFIDAVIT OF SUPPORT
‘‘SEC. 213A. (a) ENFORCEABILITY.—(1) No affidavit
of support may be accepted by the Attorney General or by
any consular officer to establish that an alien is not exclud-
able as a public charge under section 212(a)(4) unless such
affidavit is executed as a contract—
‘‘(A) which is legally enforceable against the
sponsor by the sponsored alien, the Federal Govern-
ment, and by any State (or any political subdivision
of such State) which provides any means-tested public
benefits program, but not later than 10 years after the
alien last receives any such benefit;
‘‘(B) in which the sponsor agrees to financially
support the alien, so that the alien will not become
a public charge; and
‘‘(C) in which the sponsor agrees to submit to the
jurisdiction of any Federal or State court for the pur-
pose of actions brought under subsection (e)(2).
‘‘(2) A contract under paragraph (1) shall be enforce-
able with respect to benefits provided to the alien until such
2150
HR 2491 EAS
time as the alien achieves United States citizenship through
naturalization pursuant to chapter 2 of title III.
‘‘(b) FORMS.—Not later than 90 days after the date
of enactment of this section, the Attorney General, in con-
sultation with the Secretary of State and the Secretary of
Health and Human Services, shall formulate an affidavit
of support consistent with the provisions of this section.
‘‘(c) REMEDIES.—Remedies available to enforce an af-
fidavit of support under this section include any or all of
the remedies described in section 3201, 3203, 3204, or 3205
of title 28, United States Code, as well as an order for spe-
cific performance and payment of legal fees and other costs
of collection, and include corresponding remedies available
under State law. A Federal agency may seek to collect
amounts owed under this section in accordance with the
provisions of subchapter II of chapter 37 of title 31, United
States Code.
‘‘(d) NOTIFICATION OF CHANGE OF ADDRESS.—
‘‘(1) IN GENERAL.—The sponsor shall notify the
Attorney General and the State in which the spon-
sored alien is currently resident within 30 days of
any change of address of the sponsor during the pe-
riod specified in subsection (a)(2).
2151
HR 2491 EAS
‘‘(2) PENALTY.—Any person subject to the re-
quirement of paragraph (1) who fails to satisfy such
requirement shall be subject to a civil penalty of—
‘‘(A) not less than $250 or more than
$2,000, or
‘‘(B) if such failure occurs with knowledge
that the alien has received any means-tested pub-
lic benefit, not less than $2,000 or more than
$5,000.
‘‘(e) REIMBURSEMENT OF GOVERNMENT EXPENSES.—
(1)(A) Upon notification that a sponsored alien has re-
ceived any benefit under any means-tested public benefits
program, the appropriate Federal, State, or local official
shall request reimbursement by the sponsor in the amount
of such assistance.
‘‘(B) The Attorney General, in consultation with the
Secretary of Health and Human Services, shall prescribe
such regulations as may be necessary to carry out subpara-
graph (A).
‘‘(2) If within 45 days after requesting reimbursement,
the appropriate Federal, State, or local agency has not re-
ceived a response from the sponsor indicating a willingness
to commence payments, an action may be brought against
the sponsor pursuant to the affidavit of support.
2152
HR 2491 EAS
‘‘(3) If the sponsor fails to abide by the repayment
terms established by such agency, the agency may, within
60 days of such failure, bring an action against the sponsor
pursuant to the affidavit of support.
‘‘(4) No cause of action may be brought under this sub-
section later than 10 years after the alien last received any
benefit under any means-tested public benefits program.
‘‘(5) If, pursuant to the terms of this subsection, a Fed-
eral, State, or local agency requests reimbursement from the
sponsor in the amount of assistance provided, or brings an
action against the sponsor pursuant to the affidavit of sup-
port, the appropriate agency may appoint or hire an indi-
vidual or other person to act on behalf of such agency acting
under the authority of law for purposes of collecting any
moneys owed. Nothing in this subsection shall preclude any
appropriate Federal, State, or local agency from directly
requesting reimbursement from a sponsor for the amount
of assistance provided, or from bringing an action against
a sponsor pursuant to an affidavit of support.
‘‘(f) DEFINITIONS.—For the purposes of this section—
‘‘(1) SPONSOR.—The term ‘sponsor’ means an
individual who—
‘‘(A) is a citizen or national of the United
States or an alien who is lawfully admitted to
the United States for permanent residence;
2153
HR 2491 EAS
‘‘(B) is 18 years of age or over;
‘‘(C) is domiciled in any State; and
‘‘(D) is the person petitioning for the ad-
mission of the alien under section 204.
‘‘(2) MEANS-TESTED PUBLIC BENEFITS PROGRAM
DEFINED.—The term ‘means-tested public benefits
program’ means a program of Federal public benefits
providing direct spending (including cash, medical,
housing, and food assistance and social services) by
the Federal Government in which the eligibility of an
individual, household, or family eligibility unit for
benefits, or the amount of such benefits, or both are
determined on the basis of income, resources, or fi-
nancial need of the individual, household, or unit.’’.
(b) CLERICAL AMENDMENT.—The table of contents of
such Act is amended by inserting after the item relating
to section 213 the following:
‘‘Sec. 213A. Requirements for sponsor’s affidavit of support.’’.
(c) EFFECTIVE DATE.—Subsection (a) of section 213A
of the Immigration and Nationality Act, as inserted by sub-
section (a) of this section, shall apply to affidavits of sup-
port executed on or after a date specified by the Attorney
General, which date shall be not earlier than 60 days (and
not later than 90 days) after the date the Attorney General
formulates the form for such affidavits under subsection (b)
of such section.
2154
HR 2491 EAS
(d) BENEFITS NOT SUBJECT TO REIMBURSEMENT.—
Requirements for reimbursement by a sponsor for benefits
provided to a sponsored alien pursuant to an affidavit of
support under section 213A of the Immigration and Na-
tionality Act shall not apply with respect to the following:
(1) Emergency medical services under title XIX
or XXI of the Social Security Act.
(2) Short-term, non-cash, in-kind emergency dis-
aster relief.
(3) Assistance or benefits under the National
School Lunch Act.
(4) Assistance or benefits under the Child Nutri-
tion Act of 1966.
(5)(A) Public health assistance for immuniza-
tions.
(B) Public health assistance for testing and
treatment of a serious communicable disease if the
Secretary of Health and Human Services determines
that it is necessary to prevent the spread of such dis-
ease.
(6) Payments for foster care and adoption assist-
ance under part B of title IV of the Social Security
Act for a child who would, in the absence of sub-
section (a), be eligible to have such payments made on
the child’s behalf under such part, but only if the fos-
2155
HR 2491 EAS
ter or adoptive parent or parents of such child are not
described under subsection (a).
(7) Programs, services, or assistance (such as
soup kitchens, crisis counseling and intervention, and
short-term shelter) specified by the Attorney General,
in the Attorney General’s sole and unreviewable dis-
cretion after consultation with appropriate Federal
agencies and departments, which (A) deliver in-kind
services at the community level, including through
public or private nonprofit agencies; (B) do not con-
dition the provision of assistance, the amount of as-
sistance provided, or the cost of assistance provided
on the individual recipient’s income or resources; and
(C) are necessary for the protection of life or safety.
(8) Programs of student assistance under titles
IV, V, IX, and X of the Higher Education Act of
1965.
SEC. 12423. COSIGNATURE OF ALIEN STUDENT LOANS.
Section 484(b) of the Higher Education Act of 1965
(20 U.S.C. 1091(b)) is amended by adding at the end the
following new paragraph:
‘‘(6) 
Notwithstanding 
sections 
427(a)(2)(C),
428B(a), 428C(b)(4)(A), and 464(c)(1)(E), a student
who is an alien lawfully admitted for permanent resi-
dence under the Immigration and Nationality Act
2156
HR 2491 EAS
shall not be eligible for a loan under this title unless
the loan is endorsed and cosigned by the alien’s spon-
sor under section 213A of the Immigration and Na-
tionality Act or by another individual who is a Unit-
ed States citizen.’’.
CHAPTER 3—GENERAL PROVISIONS
SEC. 12431. DEFINITIONS.
(a) IN GENERAL.—Except as otherwise provided in
this subtitle, the terms used in this subtitle have the same
meaning given such terms in section 101(a) of the Immigra-
tion and Nationality Act.
(b) QUALIFIED ALIEN.—For purposes of this subtitle,
the term ‘‘qualified alien’’ means an alien who, at the time
the alien applies for, receives, or attempts to receive a Fed-
eral public benefit, is—
(1) an alien who is lawfully admitted for perma-
nent residence under the Immigration and National-
ity Act,
(2) an alien who is granted asylum under sec-
tion 208 of such Act,
(3) a refugee who is admitted to the United
States under section 207 of such Act,
(4) an alien who is paroled into the United
States under section 212(d)(5) of such Act for a pe-
riod of at least 1 year,
2157
HR 2491 EAS
(5) an alien whose deportation is being withheld
under section 243(h) of such Act, or
(6) an alien who is granted conditional entry
pursuant to section 203(a)(7) of such Act as in effect
prior to April 1, 1980.
SEC. 12432. REAPPLICATION FOR SSI BENEFITS.
(a) APPLICATION AND NOTICE.—Notwithstanding any
other provision of law, in the case of an individual who
is receiving supplemental security income benefits under
title XVI of the Social Security Act as of the date of the
enactment of this Act and whose eligibility for such benefits
would terminate by reason of the application of section
12402(a)(2)(D), the Commissioner of Social Security shall
so notify the individual not later than 90 days after the
date of the enactment of this Act.
(b) REAPPLICATION.—
(1) IN GENERAL.—Not later than 120 days after
the date of the enactment of this Act, each individual
notified pursuant to subsection (a) who desires to re-
apply for benefits under title XVI of the Social Secu-
rity Act shall reapply to the Commissioner of Social
Security.
(2) DETERMINATION OF ELIGIBILITY.—Not later
than 1 year after the date of the enactment of this
Act, the Commissioner of Social Security shall deter-
2158
HR 2491 EAS
mine the eligibility of each individual who reapplies
for benefits under paragraph (1) pursuant to the pro-
cedures of such title XVI.
SEC. 12433. STATUTORY CONSTRUCTION.
(a) LIMITATION.—
(1) Nothing in this subtitle may be construed as
an entitlement or a determination of an individual’s
eligibility or fulfillment of the requisite requirements
for any Federal, State, or local governmental pro-
gram, assistance, or benefits. For purposes of this sub-
title, eligibility relates only to the general issue of eli-
gibility or ineligibility on the basis of alienage.
(2) Nothing in this subtitle may be construed as
addressing alien eligibility for a basic public edu-
cation as determined by the Supreme Court of the
United States under Plyler v. Doe (457 U.S.
202)(1982).
(b) NOT APPLICABLE TO FOREIGN ASSISTANCE.—This
subtitle does not apply to any Federal, State, or local gov-
ernmental program, assistance, or benefits provided to an
alien under any program of foreign assistance as deter-
mined by the Secretary of State in consultation with the
Attorney General.
(c) SEVERABILITY.—If any provision of this subtitle
or the application of such provision to any person or cir-
2159
HR 2491 EAS
cumstance is held to be unconstitutional, the remainder of
this subtitle and the application of the provisions of such
to any person or circumstance shall not be affected thereby.
Subtitle E—Teaching Hospital and
Graduate 
Medical 
Education
Trust Fund
CHAPTER 1—TRUST FUND
SEC. 12501. ESTABLISHMENT OF FUND; PAYMENTS TO
TEACHING HOSPITALS.
The Social Security Act (42 U.S.C. 300 et seq.) is
amended by adding after title XXI the following title:
‘‘TITLE XXII—TEACHING HOSPITAL AND
GRADUATE MEDICAL EDUCATION TRUST FUND
‘‘TABLE OF CONTENTS OF TITLE
‘‘PART A—ESTABLISHMENT OF FUND
‘‘Sec. 2201. Establishment of Fund.
‘‘PART B—PAYMENTS TO TEACHING HOSPITALS
‘‘Subpart 1—Requirement of Payments
‘‘Sec. 2211. Formula payments to teaching hospitals.
‘‘Sec. 2212. Additional provisions regarding annual payment document.
‘‘Subpart 2—Amount Relating to MedicarePlus Program
‘‘Sec. 2221. Determination of amount relating to MedicarePlus program.
‘‘Subpart 3—Amount Relating to Indirect Costs of Graduate Medical
Education
‘‘Sec. 2231. Determination of amount relating to indirect costs.
‘‘Sec. 2232. Indirect costs; special rules regarding payments from general ac-
count.
‘‘Subpart 4—Amount Relating to Direct Costs of Graduate Medical Education
‘‘Sec. 2241. Determination of amount relating to direct costs.
2160
HR 2491 EAS
‘‘Sec. 2242. Direct costs; special rules regarding payments from general ac-
count.
‘‘Sec. 2243. Direct costs; authority for payments to consortia of providers.
‘‘PART A—ESTABLISHMENT OF FUND
‘‘SEC. 2201. ESTABLISHMENT OF FUND.
‘‘(a) IN GENERAL.—There is established in the Treas-
ury of the United States a fund to be known as the Teaching
Hospital and Graduate Medical Education Trust Fund (in
this title referred to as the ‘Fund’), consisting of amounts
appropriated to the Fund in subsections (d), (f)(3), and (g),
and amounts transferred to the Fund under section 1886(j).
Amounts in the Fund are available until expended.
‘‘(b) EXPENDITURES FROM FUND.—Amounts in the
Fund are available to the Secretary for making payments
under section 2211.
‘‘(c) ACCOUNTS IN FUND.—There are established with-
in the Fund the following accounts:
‘‘(1) The General MedicarePlus Incentive Ac-
count.
‘‘(2) The General Indirect-Costs Medical Edu-
cation Account.
‘‘(3) The General Direct-Costs Medical Edu-
cation Account.
‘‘(4) The Medicare Indirect-Costs Medical Edu-
cation Account.
‘‘(5) The Medicare Direct-Costs Medical Edu-
cation Account.
2161
HR 2491 EAS
‘‘(d) GENERAL TRANSFERS TO FUND.—
‘‘(1) IN GENERAL.—For fiscal year 1997 and
each subsequent fiscal year, there are appropriated to
the Fund (effective on the date specified in paragraph
(2)), out of any money in the Treasury not otherwise
appropriated, the following amounts (as applicable to
the fiscal year involved):
‘‘(A) For fiscal year 1997, $1,100,000,000.
‘‘(B) For fiscal year 1998, $1,300,000,000.
‘‘(C) For fiscal year 1999, $2,000,000,000.
‘‘(D) For fiscal year 2000, $2,600,000,000.
‘‘(E) For fiscal year 2001, $3,100,000,000.
‘‘(F) For fiscal year 2002, $3,400,000,000.
‘‘(G) For fiscal year 2003 and each subse-
quent fiscal year, the greater of the amount ap-
propriated for the preceding fiscal year or an
amount equal to the product of—
‘‘(i) the amount appropriated for the
preceding fiscal year; and
‘‘(ii) 1 plus the percentage increase in
the nominal gross domestic product for the
one-year period ending upon July 1 of such
preceding fiscal year.
‘‘(2) EFFECTIVE DATE FOR ANNUAL APPROPRIA-
TION.—For purposes of paragraph (1), the date speci-
2162
HR 2491 EAS
fied in this paragraph for a fiscal year is the first
day of the fiscal year.
‘‘(3) ALLOCATION FOR GENERAL MEDICAREPLUS
INCENTIVE ACCOUNT.—Of the amount appropriated
in paragraph (1) for a fiscal year, there shall be allo-
cated to the General MedicarePlus Incentive Account
the following percentage (as applicable to the fiscal
year involved):
‘‘(A) For fiscal year 1997, 20 percent.
‘‘(B) For fiscal year 1998, 30 percent.
‘‘(C) For fiscal year 1999, 40 percent.
‘‘(D) For fiscal year 2000 and each subse-
quent fiscal year, 50 percent.
‘‘(4) ALLOCATIONS FOR GENERAL MEDICAL EDU-
CATION ACCOUNTS.—
‘‘(A) IN GENERAL.—Of the amount appro-
priated in paragraph (1) for a fiscal year and
remaining after the allocation required in para-
graph (3) for the year has been made—
‘‘(i) there shall be allocated to the Gen-
eral Indirect-Costs Medical Education Ac-
count the percentage determined under sub-
paragraph (B)(ii); and
‘‘(ii) there shall be allocated to the
General Direct-Costs Medical Education Ac-
2163
HR 2491 EAS
count the percentage determined under sub-
paragraph (B)(iii).
‘‘(B) DETERMINATION OF FIXED PERCENT-
AGES.—The Secretary of Health and Human
Services, acting through the Administrator of the
Health Care Financing Administration, shall de-
termine the following:
‘‘(i) The total amount of payments
that were made under subsections (d)(5)(B)
and (h) of section 1886 for fiscal year 1994.
‘‘(ii) The percentage of such total that
was constituted by payments under sub-
section (d)(5)(B) of such section.
‘‘(iii) The percentage of such total that
was constituted by payments under sub-
section (h) of such section.
‘‘(e) TRANSFERS
FROM
MEDICARE
PROGRAM.—
Amounts shall, in accordance with section 1886(j), be trans-
ferred to the Fund from the trust funds established under
parts A and B of title XVIII.
‘‘(f) INVESTMENT.—
‘‘(1) IN GENERAL.—The Secretary of the Treas-
ury shall invest such amounts of the Fund as such
Secretary determines are not required to meet current
withdrawals from the Fund. Such investments may be
2164
HR 2491 EAS
made only in interest-bearing obligations of the Unit-
ed States. For such purpose, such obligations may be
acquired on original issue at the issue price, or by
purchase of outstanding obligations at the market
price.
‘‘(2) SALE OF OBLIGATIONS.—Any obligation ac-
quired by the Fund may be sold by the Secretary of
the Treasury at the market price.
‘‘(3) AVAILABILITY OF INCOME.—Any interest de-
rived from obligations acquired by the Fund, and
proceeds from any sale or redemption of such obliga-
tions, are hereby appropriated to the Fund.
‘‘(g) MONETARY GIFTS TO FUND.—There are appro-
priated to the Fund such amounts as may be uncondition-
ally donated to the Federal Government as gifts to the
Fund.
‘‘PART B—PAYMENTS TO TEACHING HOSPITALS
‘‘Subpart 1—Requirement of Payments
‘‘SEC. 2211. FORMULA PAYMENTS TO TEACHING HOSPITALS.
‘‘(a) IN GENERAL.—Subject to subsection (d), in the
case of each teaching hospital that in accordance with sub-
section (b) submits to the Secretary a payment document
for fiscal year 1997 or any subsequent fiscal year, the Sec-
retary shall make payments for the year to the teaching
hospital for the direct and indirect costs of operating ap-
2165
HR 2491 EAS
proved medical residency training programs. Such pay-
ments shall be made from the Fund, and the total of the
payments to the hospital for the fiscal year shall equal the
sum of the following:
‘‘(1) An amount determined under section 2221
(relating to the MedicarePlus program).
‘‘(2) An amount determined under section 2231
(relating to the indirect costs of graduate medical
education).
‘‘(3) An amount determined under section 2241
(relating to the direct costs of graduate medical edu-
cation).
‘‘(b) PAYMENT DOCUMENT.—For purposes of sub-
section (a), a payment document is a document containing
such information as may be necessary for the Secretary to
make payments under such subsection to a teaching hospital
during a fiscal year. The document is submitted in accord-
ance with this subsection if the document is submitted not
later than the date specified by the Secretary, and the docu-
ment is in such form and is made in such manner as the
Secretary may require. This subsection is subject to section
2212.
‘‘(c) PERIODIC PAYMENTS.—Payments under sub-
section (a) for a teaching hospital for a fiscal year shall
be made periodically, at such intervals and in such
2166
HR 2491 EAS
amounts as the Secretary determines to be appropriate
(subject to applicable Federal law regarding Federal pay-
ments).
‘‘(d) SPECIAL RULES.—
‘‘(1) PAYMENTS TO CONSORTIA OF PROVIDERS.—
In the case of payments under subsection (a) that are
determined under section 2241:
‘‘(A) The requirement under such subsection
to make the payments to teaching hospitals is
subject to the authority of the Secretary under
section 2243(a) to make payments to qualifying
consortia.
‘‘(B) If the Secretary authorizes payments
to a consortium under section 2243(a), sub-
sections (a) and (b) of this section (other than
subsection (a)(2)) apply to the consortium to the
same extent and in the same manner as the sub-
sections apply to teaching hospitals.
‘‘(2) HOSPITALS IN STATES WITH CERTAIN DEM-
ONSTRATION PROJECTS.—Paragraph (2) of subsection
(a) is subject to section 2232(d)(1)(B), and paragraph
(3) 
of 
such 
subsection 
is 
subject 
to 
section
2242(d)(1)(B).
‘‘(e) ADMINISTRATOR OF PROGRAMS.—This part, and
the subsequent parts of this title, shall be carried out by
2167
HR 2491 EAS
the Secretary acting through the Administrator of the
Health Care Financing Administration.
‘‘(f) APPROVED MEDICAL RESIDENCY TRAINING PRO-
GRAM .—For purposes of this title, the term ‘approved med-
ical residency training program’ has the meaning given
such term in section 1886(h)(5)(A).
‘‘SEC. 2212. ADDITIONAL PROVISIONS REGARDING ANNUAL
PAYMENT DOCUMENT.
‘‘(a) PERIODIC REPORTS.—In collecting information
under section 2211(b), the Secretary may require that infor-
mation be submitted to the Secretary in periodic reports.
‘‘(b) INFORMATION RELATING
TO MEDICARE PRO-
GRAM.—Information collected by the Secretary under sec-
tion 2211(b) with respect to a teaching hospital for a fiscal
year shall include information on the following:
‘‘(1) The number of inpatient discharges for the
fiscal year attributable to individuals enrolled in the
MedicarePlus program under part C of title XVIII.
‘‘(2) For each discharge with respect to which
payment is received from the Secretary pursuant to
part A of title XVIII, the diagnosis-related group
within which the discharge is classified (as deter-
mined in accordance with section 1886(d)(4)(A)).
‘‘(3) The medicare patient load of the hospital
(as defined in section 1886(h)(3)(C)).
2168
HR 2491 EAS
‘‘Subpart 2—Amount Relating to MedicarePlus Program
‘‘SEC. 2221. DETERMINATION OF AMOUNT RELATING TO
MEDICAREPLUS PROGRAM.
‘‘(a) 
IN
GENERAL.—For 
purposes 
of 
section
2211(a)(1), the amount determined under this section for
a teaching hospital for a fiscal year is the product of—
‘‘(1) the amount in the General MedicarePlus In-
centive Account on the date specified in section
2201(d)(2) (once the appropriation under such section
is made); and
‘‘(2) the percentage determined for the hospital
under subsection (b) for the fiscal year.
‘‘(b) ANNUAL HOSPITAL-SPECIFIC PERCENTAGE.—For
purposes of subsection (a)(2), the percentage determined
under this subsection for a teaching hospital for a fiscal
year is the percentage constituted by the ratio of—
‘‘(1) the number of inpatient discharges for the
fiscal year attributable to individuals enrolled in the
MedicarePlus program under part C of title XVIII; to
‘‘(2) the sum of the respective numbers deter-
mined under paragraph (1) for the fiscal year for all
teaching hospitals.
2169
HR 2491 EAS
‘‘Subpart 3—Amount Relating to Indirect Costs of
Graduate Medical Education
‘‘SEC. 2231. DETERMINATION OF AMOUNT RELATING TO IN-
DIRECT COSTS.
‘‘(a) 
IN
GENERAL.—For 
purposes 
of 
section
2211(a)(2), the amount determined under this section for
a teaching hospital for a fiscal year is the sum of—
‘‘(1) the amount determined under subsection (b)
(relating to the General Indirect-Costs Medical Edu-
cation Account); and
‘‘(2) the amount determined under subsection (c)
(relating to the Medicare Indirect-Costs Medical Edu-
cation Account), subject to section 2232(d)(1)(B).
‘‘(b) PAYMENT FROM GENERAL ACCOUNT.—
‘‘(1) IN GENERAL.—For purposes of subsection
(a)(1), the amount determined under this subsection
for a teaching hospital for a fiscal year is the product
of—
‘‘(A) the amount in the General Indirect-
Costs Medical Education Account on the date
specified in section 2201(d)(2) (once the appro-
priation under such section is made); and
‘‘(B) the percentage determined for the hos-
pital under paragraph (2).
‘‘(2) FIXED HOSPITAL-SPECIFIC PERCENTAGE.—
2170
HR 2491 EAS
‘‘(A) IN GENERAL.—For purposes of para-
graph (1)(B), the percentage determined under
this paragraph for a teaching hospital is the
mean average of the respective percentages deter-
mined under subparagraph (C) for each fiscal
year of the applicable period (as defined in sub-
paragraph (B)), adjusted by the Secretary (up-
ward or downward, as the case may be) on a pro
rata basis to the extent necessary to ensure that
the sum of the percentages determined under this
paragraph for all teaching hospitals is equal to
100 percent. The preceding sentence is subject to
section 2232.
‘‘(B) APPLICABLE PERIOD REGARDING REL-
EVANT
DATA; 
FISCAL
YEARS
1992
THROUGH
1994.—For purposes of this part, the term ‘appli-
cable period’ means the period beginning on the
first day of fiscal year 1992 and continuing
through the end of fiscal year 1994.
‘‘(C) RESPECTIVE
DETERMINATIONS
FOR
FISCAL
YEARS
OF
APPLICABLE
PERIOD.—For
purposes of subparagraph (A), the percentage de-
termined under this subparagraph for a teaching
hospital for a fiscal year of the applicable period
is the percentage constituted by the ratio of—
2171
HR 2491 EAS
‘‘(i) the total amount of payments re-
ceived 
by 
the 
hospital 
under 
section
1886(d)(5)(B) for discharges occurring dur-
ing the fiscal year involved; to
‘‘(ii) the sum of the respective amounts
determined under clause (i) for the fiscal
year for all teaching hospitals.
‘‘(3) AVAILABILITY OF DATA.—If a teaching hos-
pital received the payments specified in paragraph
(2)(C)(i) during the applicable period but a complete
set of the relevant data is not available to the Sec-
retary for purposes of determining an amount under
such paragraph for the fiscal year involved, the Sec-
retary shall for purposes of such subsection make an
estimate on the basis of such data as are available to
the Secretary for the applicable period.
‘‘(c) PAYMENT FROM MEDICARE ACCOUNT.—For pur-
poses of subsection (a)(2), the amount determined under this
subsection for a teaching hospital for a fiscal year is an
amount determined in accordance with the methodology in
effect under section 1886(d)(5)(B) for such year. Payments
made under section 2211 pursuant to the preceding sentence
shall be made from the Medicare Indirect-Costs Medical
Education Account.
2172
HR 2491 EAS
‘‘SEC. 2232. INDIRECT COSTS; SPECIAL RULES REGARDING
PAYMENTS FROM GENERAL ACCOUNT.
‘‘(a) SPECIAL RULE REGARDING FISCAL YEARS 1995
AND 1996.—
‘‘(1) IN GENERAL.—In the case of a teaching hos-
pital 
whose 
first 
payments 
under 
section
1886(d)(5)(B) were for discharges occurring in fiscal
year 1995 or in fiscal year 1996 (referred to in this
subsection individually as a ‘first payment year’), the
percentage determined under paragraph (2) for the
hospital is deemed to be the percentage applicable
under section 2231(b)(2) to the hospital, subject to
paragraph (3).
‘‘(2) DETERMINATION OF FIXED PERCENTAGE.—
For purposes of paragraph (1), the percentage deter-
mined under this paragraph for a teaching hospital
is the percentage constituted by the ratio of the
amount determined under subparagraph (A) to the
amount determined under subparagraph (B), as fol-
lows:
‘‘(A)(i) If the first payment year for the
hospital is fiscal year 1995, the amount deter-
mined under this subparagraph is the total
amount of payments received by the hospital
under section 1886(d)(5)(B) for discharges occur-
ring during fiscal year 1995.
2173
HR 2491 EAS
‘‘(ii) If the first payment year for the hos-
pital is fiscal year 1996, the amount determined
under this subparagraph is an amount equal to
an estimate by the Secretary of the total amount
of payments that would have been paid to the
hospital under section 1886(d)(5)(B) for dis-
charges occurring during fiscal year 1995 if such
section, as in effect for fiscal year 1996, had ap-
plied to the hospital for discharges occurring
during fiscal year 1995.
‘‘(B)(i) If the first payment year for the
hospital is fiscal year 1995, the amount deter-
mined under this subparagraph is the aggregate
total of the payments received by teaching hos-
pitals under section 1886(d)(5)(B) for discharges
occurring during fiscal year 1995.
‘‘(ii) If the first payment year for the hos-
pital is fiscal year 1996—
‘‘(I) the Secretary shall make an esti-
mate in accordance with subparagraph
(A)(ii) for all teaching hospitals; and
‘‘(II) the amount determined under
this subparagraph is the sum of the esti-
mates 
made 
by 
the 
Secretary 
under
subclause (I).
2174
HR 2491 EAS
‘‘(3) ADJUSTMENT OF PERCENTAGE.—The per-
centage determined under paragraph (2) shall be ad-
justed by the Secretary in accordance with section
2231(b)(2)(A) to the extent determined by the Sec-
retary to be necessary with respect to a sum that
equals 100 percent.
‘‘(b) NEW TEACHING HOSPITALS.—
‘‘(1) IN GENERAL.—In the case of a teaching hos-
pital that did not receive payments under section
1886(d)(5)(B) for any of the fiscal years 1992 through
1996, the percentage determined under paragraph (3)
for the hospital is deemed to be the percentage appli-
cable under section 2231(b)(2) to the hospital, subject
to paragraphs (4) and (5).
‘‘(2) DESIGNATED
FISCAL
YEAR
REGARDING
DATA.—The determination under paragraph (3) of a
percentage for a teaching hospital described in para-
graph (1) shall be made for the most recent fiscal year
for which the Secretary has sufficient data to make
the determination (referred to in this subsection as the
‘designated fiscal year’).
‘‘(3) DETERMINATION OF FIXED PERCENTAGE.—
For purposes of paragraph (1), the percentage deter-
mined under this paragraph for the teaching hospital
involved is the percentage constituted by the ratio of
2175
HR 2491 EAS
the amount determined under subparagraph (A) to
the amount determined under subparagraph (B), as
follows:
‘‘(A) The amount determined under this
subparagraph is an amount equal to an estimate
by the Secretary of the total amount of payments
that would have been paid to the hospital under
section 1886(d)(5)(B) for the designated fiscal
year if such section, as in effect for the first fis-
cal year for which payments pursuant to this
subsection are to be made to the hospital, had
applied to the hospital for the designated fiscal
year.
‘‘(B) The Secretary shall make an estimate
in accordance with subparagraph (A) for all
teaching hospitals. The amount determined
under this subparagraph is the sum of the esti-
mates made by the Secretary under the preceding
sentence.
‘‘(4) ADJUSTMENT OF PERCENTAGE.—The per-
centage determined under paragraph (3) shall be ad-
justed by the Secretary in accordance with section
2231(b)(2)(A) to the extent determined by the Sec-
retary to be necessary with respect to a sum that
equals 100 percent.
2176
HR 2491 EAS
‘‘(5) LIMITATION.—This subsection does not
apply to a teaching hospital described in paragraph
(1) if the hospital is in a State for which a dem-
onstration project under section 1814(b)(3) is in ef-
fect.
‘‘(c) CONSOLIDATIONS AND MERGERS.—In the case of
two or more teaching hospitals that have each received pay-
ments pursuant to section 2231 for one or more fiscal years
and that undergo a consolidation or merger, the percentage
applicable to the resulting teaching hospital for purposes
of section 2231(b)(2) is the sum of the respective percentages
that would have applied pursuant to such section if the hos-
pitals had not undergone the consolidation or merger.
‘‘(d) 
STATES
WITH
CERTAIN
DEMONSTRATION
PROJECTS.—
‘‘(1) IN GENERAL.—In the case of a teaching hos-
pital in a State for which a demonstration project
under section 1814(b)(3) is in effect—
‘‘(A) the percentage determined under para-
graph (2) for the hospital is deemed to be the
percentage applicable under section 2231(b)(2) to
the hospital; and
‘‘(B) the hospital is not eligible for any
payments from the Medicare Indirect-Costs Med-
ical Education Account.
2177
HR 2491 EAS
‘‘(2) DETERMINATION OF FIXED PERCENTAGE.—
For purposes of paragraph (1)(A):
‘‘(A) The Secretary shall make an estimate
of the total amount of payments that would have
been received under section 1886(d)(5)(b) by the
hospital involved with respect to each of the fis-
cal years of the applicable period if such section
(as in effect for such fiscal years) had applied to
the hospital for such years.
‘‘(B) The percentage determined under this
paragraph for the hospital for a fiscal year is a
mean average percentage determined for the hos-
pital in accordance with the methodology of sec-
tion 2231(b)(2), except that the estimate made by
the Secretary under subparagraph (A) of this
paragraph for a fiscal year of the applicable pe-
riod is deemed to be the amount that applies for
purposes of section 2231(b)(2)(C)(i) for such
year.
2183
HR 2491 EAS
retary to be necessary with respect to a sum that
equals 100 percent.
‘‘(b) NEW TEACHING HOSPITALS.—
‘‘(1) IN GENERAL.—In the case of a teaching hos-
pital that did not receive payments under section
1886(h) for any of the fiscal years 1992 through 1996,
the percentage determined under paragraph (3) for
the hospital is deemed to be the percentage applicable
under section 2241(b)(2) to the hospital, subject to
paragraphs (4) and (5).
‘‘(2) DESIGNATED
FISCAL
YEAR
REGARDING
DATA.—The determination under paragraph (3) of a
percentage for a teaching hospital described in para-
graph (1) shall be made for the most recent fiscal year
for which the Secretary has sufficient data to make
the determination (referred to in this subsection as the
‘designated fiscal year’).
‘‘(3) DETERMINATION OF FIXED PERCENTAGE.—
For purposes of paragraph (1), the percentage deter-
mined under this paragraph for the teaching hospital
involved is the percentage constituted by the ratio of
the amount determined under subparagraph (A) to
the amount determined under subparagraph (B), as
follows:
2186
HR 2491 EAS
‘‘(A) The Secretary shall make an estimate
of the total amount of payments that would have
been received under section 1886(h) by the hos-
pital involved with respect to each of the fiscal
years of the applicable period if such section (as
in effect for such fiscal years) had applied to the
hospital for such years.
‘‘(B) The percentage determined under this
paragraph for the hospital for a fiscal year is a
mean average percentage determined for the hos-
pital in accordance with the methodology of sec-
tion 2241(b)(2), except that the estimate made by
the Secretary under subparagraph (A) of this
paragraph for a fiscal year of the applicable pe-
riod is deemed to be the amount that applies for
purposes of section 2241(b)(2)(B)(i) for such
year.
‘‘SEC. 2243. DIRECT COSTS; AUTHORITY FOR PAYMENTS TO
CONSORTIA OF PROVIDERS.
‘‘(a) IN GENERAL.—In lieu of making payments to
teaching hospitals pursuant to sections 2221 and 2241, the
Secretary may make payments under this section to consor-
tia that meet the requirements of subsection (b).
‘‘(b) QUALIFYING CONSORTIUM.—For purposes of sub-
section (a), a consortium meets the requirements of this sub-