190
‘‘TREATMENT REFERRALS FOR INDIVIDUALS WITH AN
ALCOHOLISM OR DRUG ADDICTION CONDITION
‘‘SEC. 1636. In the case of any eligible individual
whose benefits under this title by reason of disability are
paid to a representative payee pursuant to section
1631(a)(2)(A)(ii)(II), the Commissioner of Social Security
shall refer such individual to the appropriate State agency
administering the State plan for substance abuse treat-
ment services approved under subpart II of part B of title
XIX of the Public Health Service Act (42 U.S.C. 300x–
21 et seq.).’’.
(d) CONFORMING AMENDMENTS.—
(1) Section 1611(e) (42 U.S.C. 1382(e)) is
amended by striking paragraph (3).
(2) Section 1634 (42 U.S.C. 1383c) is amended
by striking subsection (e).
(3) Section 201(c)(1) of the Social Security
Independence and Program Improvements Act of
1994 (42 U.S.C. 425 note) is amended—
(A) by striking ‘‘to—’’ and all that follows
through ‘‘in cases in which’’ and inserting ‘‘to
individuals who are entitled to disability insur-
ance benefits or child’s, widow’s, or widower’s
insurance benefits based on disability under
191
title II of the Social Security Act, in cases in
which’’;
(B) by striking ‘‘either subparagraph (A)
or subparagraph (B)’’ and inserting ‘‘the pre-
ceding sentence’’; and
(C) by striking ‘‘subparagraph (A) or (B)’’
and inserting ‘‘the preceding sentence’’.
(e) SUPPLEMENTAL FUNDING FOR ALCOHOL AND
SUBSTANCE ABUSE TREATMENT PROGRAMS.—
(1) IN GENERAL.—Out of any money in the
Treasury not otherwise appropriated, there are here-
by appropriated to supplement State and Tribal pro-
grams funded under section 1933 of the Public
Health 
Service 
Act 
(42 
U.S.C. 
300x–33),
$50,000,000 for each of the fiscal years 1997 and
1998.
(2) 
ADDITIONAL
FUNDS.—Amounts 
appro-
priated under paragraph (1) shall be in addition to
any funds otherwise appropriated for allotments
under section 1933 of the Public Health Service Act
(42 U.S.C. 300x–33) and shall be allocated pursuant
to such section 1933.
(3) USE OF FUNDS.—A State or tribal govern-
ment receiving an allotment under this subsection
shall consider as priorities, for purposes of expend-
192
ing funds allotted under this subsection, activities
relating to the treatment of the abuse of alcohol and
other drugs.
(f) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided in para-
graphs (2) and (3), the amendments made by this
section shall apply to applicants for benefits for
months beginning on or after the date of the enact-
ment of this Act, without regard to whether regula-
tions have been issued to implement such amend-
ments.
(2) APPLICATION TO CURRENT RECIPIENTS.—
(A) APPLICATION AND NOTICE.—Notwith-
standing 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 enact-
ment of this Act and whose eligibility for such
benefits would terminate by reason of the
amendments made by this section, such amend-
ments shall apply with respect to the benefits of
such individual, including such individual’s
treatment (if any) provided pursuant to such
title as in effect on the day before the date of
such enactment, for months beginning on or
193
after January 1, 1997, and the Commissioner
of Social Security shall so notify the individual
not later than 90 days after the date of the en-
actment of this Act.
(B) REAPPLICATION.—
(i) IN GENERAL.—Not later than 120
days after the date of the enactment of
this Act, each individual notified pursuant
to subparagraph (A) who desires to re-
apply for benefits under title XVI of the
Social Security Act, as amended by this
title, may reapply to the Commissioner of
Social Security.
(ii) 
DETERMINATION
OF
ELIGI-
BILITY.—Not later than January 1, 1997,
the Commissioner of Social Security shall
complete the eligibility redetermination of
each individual who reapplies for benefits
under clause (i) pursuant to the proce-
dures of title XVI of such Act.
(3) ADDITIONAL APPLICATION OF PAYEE REP-
RESENTATIVE
AND
TREATMENT
REFERRAL
RE-
QUIREMENTS.—The amendments made by sub-
sections (b) and (c) shall also apply—
194
(A) in the case of any individual who is re-
ceiving supplemental security income benefits
under title XVI of the Social Security Act as of
the date of the enactment of this Act, on and
after the date of such individual’s first continu-
ing disability review occurring after such date
of enactment, and
(B) in the case of any individual who re-
ceives supplemental security income benefits
under title XVI of the Social Security Act and
has attained age 65, in such manner as deter-
mined appropriate by the Commissioner of So-
cial Security.
Subtitle B—Benefits for Disabled
Children
SEC. 211. DEFINITION AND ELIGIBILITY RULES.
(a) DEFINITION OF CHILDHOOD DISABILITY.—Sec-
tion 1614(a)(3) (42 U.S.C. 1382c(a)(3)) is amended—
(1) in subparagraph (A), by striking ‘‘An indi-
vidual’’ and inserting ‘‘Except as provided in sub-
paragraph (C), an individual’’;
(2) in subparagraph (A), by striking ‘‘(or, in
the case of an individual under the age of 18, if he
suffers from any medically determinable physical or
mental impairment of comparable severity)’’;
195
(3) by redesignating subparagraphs (C) through
(H) as subparagraphs (D) through (I), respectively;
(4) by inserting after subparagraph (B) the fol-
lowing new subparagraph:
‘‘(C) An individual under the age of 18 shall be con-
sidered disabled for the purposes of this title if that indi-
vidual has a medically determinable physical or mental im-
pairment, which results in marked and severe functional
limitations, and which can be expected to result in death
or which has lasted or can be expected to last for a contin-
uous period of not less than 12 months.’’; and
(5) in subparagraph (F), as so redesignated by
paragraph (3) of this subsection, by striking ‘‘(D)’’
and inserting ‘‘(E)’’.
(b) CHANGES TO CHILDHOOD SSI REGULATIONS.—
(1) MODIFICATION TO MEDICAL CRITERIA FOR
EVALUATION
OF
MENTAL
AND
EMOTIONAL
DIS-
ORDERS.—The Commissioner of Social Security
shall 
modify 
sections 
112.00C.2. 
and
112.02B.2.c.(2) of appendix 1 to subpart P of part
404 of title 20, Code of Federal Regulations, to
eliminate references to maladaptive behavior in the
domain of personal/behavorial function.
(2) 
DISCONTINUANCE
OF
INDIVIDUALIZED
FUNCTIONAL
ASSESSMENT.—The Commissioner of
196
Social Security shall discontinue the individualized
functional assessment for children set forth in sec-
tions 416.924d and 416.924e of title 20, Code of
Federal Regulations.
(c) EFFECTIVE DATE; REGULATIONS; APPLICATION
TO CURRENT RECIPIENTS.—
(1) IN GENERAL.—The amendments made by
subsections (a) and (b) shall apply to applicants for
benefits for months beginning on or after the date
of the enactment of this Act, without regard to
whether regulations have been issued to implement
such amendments.
(2) REGULATIONS.—The Commissioner of So-
cial Security shall issue such regulations as the
Commissioner determines to be necessary to imple-
ment the amendments made by subsections (a) and
(b) not later than 60 days after the date of the en-
actment of this Act.
(3) APPLICATION TO CURRENT RECIPIENTS.—
(A) ELIGIBILITY
DETERMINATIONS.—Not
later than 1 year after the date of the enact-
ment of this Act, the Commissioner of Social
Security shall redetermine the eligibility of any
individual under age 18 who is receiving supple-
mental security income benefits based on a dis-
197
ability under title XVI of the Social Security
Act as of the date of the enactment of this Act
and whose eligibility for such benefits may ter-
minate by reason of the amendments made by
subsection (a) or (b). With respect to any rede-
termination under this subparagraph—
(i) section 1614(a)(4) of the Social
Security Act (42 U.S.C. 1382c(a)(4)) shall
not apply;
(ii) the Commissioner of Social Secu-
rity shall apply the eligibility criteria for
new applicants for benefits under title XVI
of such Act;
(iii) the Commissioner shall give such
redetermination priority over all continuing
eligibility reviews and other reviews under
such title; and
(iv) such redetermination shall be
counted as a review or redetermination
otherwise required to be made under sec-
tion 208 of the Social Security Independ-
ence and Program Improvements Act of
1994 or any other provision of title XVI of
the Social Security Act.
198
(B) 
GRANDFATHER
PROVISION.—The
amendments made by subsections (a) and (b),
and the redetermination under subparagraph
(A), shall only apply with respect to the benefits
of an individual described in subparagraph (A)
for months beginning on or after January 1,
1997.
(C) NOTICE.—Not later than 90 days after
the date of the enactment of this Act, the Com-
missioner of Social Security shall notify an indi-
vidual described in subparagraph (A) of the
provisions of this paragraph.
SEC. 212. ELIGIBILITY REDETERMINATIONS AND CONTINU-
ING DISABILITY REVIEWS.
(a) CONTINUING DISABILITY REVIEWS RELATING TO
CERTAIN CHILDREN.—Section 1614(a)(3)(H) (42 U.S.C.
1382c(a)(3)(H)), as so redesignated by section 211(a)(3)
of this Act, is amended—
(1) by inserting ‘‘(i)’’ after ‘‘(H)’’; and
(2) by adding at the end the following new
clause:
‘‘(ii)(I) Not less frequently than once every 3 years,
the Commissioner shall review in accordance with para-
graph (4) the continued eligibility for benefits under this
title of each individual who has not attained 18 years of
199
age and is eligible for such benefits by reason of an im-
pairment (or combination of impairments) which may im-
prove (or, which is unlikely to improve, at the option of
the Commissioner).
‘‘(II) A parent or guardian of a recipient whose case
is reviewed under this clause shall present, at the time
of review, evidence demonstrating that the recipient is,
and has been, receiving treatment, to the extent consid-
ered medically necessary and available, of the condition
which was the basis for providing benefits under this
title.’’.
(b) DISABILITY ELIGIBILITY REDETERMINATIONS
REQUIRED FOR SSI RECIPIENTS WHO ATTAIN 18 YEARS
OF AGE.—
(1) IN GENERAL.—Section 1614(a)(3)(H) (42
U.S.C. 1382c(a)(3)(H)), as so redesignated by sec-
tion 211(a)(3) of this Act and as amended by sub-
section (a) of this section, is amended by adding at
the end the following new clause:
‘‘(iii) If an individual is eligible for benefits under this
title by reason of disability for the month preceding the
month in which the individual attains the age of 18 years,
the Commissioner shall redetermine such eligibility—
‘‘(I) during the 1-year period beginning on the
individual’s 18th birthday; and
200
‘‘(II) by applying the criteria used in determin-
ing the initial eligibility for applicants who have at-
tained the age of 18 years.
With respect to a redetermination under this clause, para-
graph (4) shall not apply and such redetermination shall
be considered a substitute for a review or redetermination
otherwise required under any other provision of this sub-
paragraph during that 1-year period.’’.
(2) CONFORMING REPEAL.—Section 207 of the
Social Security Independence and Program Improve-
ments Act of 1994 (42 U.S.C. 1382 note; 108 Stat.
1516) is hereby repealed.
(c) CONTINUING DISABILITY REVIEW REQUIRED FOR
LOW BIRTH WEIGHT BABIES.—Section 1614(a)(3)(H)
(42 U.S.C. 1382c(a)(3)(H)), as so redesignated by section
211(a)(3) of this Act and as amended by subsections (a)
and (b) of this section, is amended by adding at the end
the following new clause:
‘‘(iv)(I) Not later than 12 months after the birth of
an individual, the Commissioner shall review in accordance
with paragraph (4) the continuing eligibility for benefits
under this title by reason of disability of such individual
whose low birth weight is a contributing factor material
to the Commissioner’s determination that the individual
is disabled.
201
‘‘(II) A review under subclause (I) shall be considered
a substitute for a review otherwise required under any
other provision of this subparagraph during that 12-
month period.
‘‘(III) A parent or guardian of a recipient whose case
is reviewed under this clause shall present, at the time
of review, evidence demonstrating that the recipient is,
and has been, receiving treatment, to the extent consid-
ered medically necessary and available, of the condition
which was the basis for providing benefits under this
title.’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to benefits for months beginning
on or after the date of the enactment of this Act, without
regard to whether regulations have been issued to imple-
ment such amendments.
SEC. 213. ADDITIONAL ACCOUNTABILITY REQUIREMENTS.
(a) TIGHTENING OF REPRESENTATIVE PAYEE RE-
QUIREMENTS.—
(1) 
CLARIFICATION
OF
ROLE.—Section
1631(a)(2)(B)(ii) (42 U.S.C. 1383(a)(2)(B)(ii)) is
amended by striking ‘‘and’’ at the end of subclause
(II), by striking the period at the end of subclause
(IV) and inserting ‘‘; and’’, and by adding after sub-
clause (IV) the following new subclause:
202
‘‘(V) advise such person through the notice of
award of benefits, and at such other times as the
Commissioner of Social Security deems appropriate,
of specific examples of appropriate expenditures of
benefits under this title and the proper role of a rep-
resentative payee.’’.
(2) DOCUMENTATION
OF
EXPENDITURES
RE-
QUIRED.—
(A) IN GENERAL.—Subparagraph (C)(i) of
section 1631(a)(2) (42 U.S.C. 1383(a)(2)) is
amended to read as follows:
‘‘(C)(i) In any case where payment is made to a rep-
resentative payee of an individual or spouse, the Commis-
sioner of Social Security shall—
‘‘(I) require such representative payee to docu-
ment 
expenditures 
and 
keep 
contemporaneous
records of transactions made using such payment;
and
‘‘(II) implement statistically valid procedures
for reviewing a sample of such contemporaneous
records in order to identify instances in which such
representative payee is not properly using such pay-
ment.’’.
(B) CONFORMING AMENDMENT WITH RE-
SPECT TO PARENT PAYEES.—Clause (ii) of sec-
203
tion 1631(a)(2)(C) (42 U.S.C. 1383(a)(2)(C))
is amended by striking ‘‘Clause (i)’’ and insert-
ing ‘‘Subclauses (II) and (III) of clause (i)’’.
(3) EFFECTIVE DATE.—The amendments made
by this subsection shall apply to benefits paid after
the date of the enactment of this Act.
(b) DEDICATED SAVINGS ACCOUNTS.—
(1) IN GENERAL.—Section 1631(a)(2)(B) (42
U.S.C. 1383(a)(2)(B)) is amended by adding at the
end the following:
‘‘(xiv) Notwithstanding clause (x), the Commissioner
of Social Security may, at the request of the representative
payee, pay any lump sum payment for the benefit of a
child into a dedicated savings account that could only be
used to purchase for such child—
‘‘(I) education and job skills training;
‘‘(II) special equipment or housing modifica-
tions or both specifically related to, and required by
the nature of, the child’s disability; and
‘‘(III) appropriate therapy and rehabilitation.’’.
(2) DISREGARD
OF
TRUST
FUNDS.—Section
1613(a) (42 U.S.C. 1382b(a)) is amended—
(A) by striking ‘‘and’’ at the end of para-
graph (10),
204
(B) by striking the period at the end of
paragraph (11) and inserting ‘‘; and’’, and
(C) by inserting after paragraph (11) the
following:
‘‘(12) all amounts deposited in, or interest cred-
ited to, a dedicated savings account described in sec-
tion 1631(a)(2)(B)(xiv).’’.
(3) EFFECTIVE DATE.—The amendments made
by this subsection shall apply to payments made
after the date of the enactment of this Act.
SEC. 214. REDUCTION IN CASH BENEFITS PAYABLE TO IN-
STITUTIONALIZED INDIVIDUALS WHOSE MED-
ICAL COSTS ARE COVERED BY PRIVATE IN-
SURANCE.
(a) IN GENERAL.—Section 1611(e)(1)(B) (42 U.S.C.
1382(e)(1)(B)) is amended—
(1) by striking ‘‘title XIX, or’’ and inserting
‘‘title XIX,’’; and
(2) by inserting ‘‘or, in the case of an eligible
individual under the age of 18 receiving payments
(with respect to such individual) under any health
insurance policy issued by a private provider of such
insurance’’ after ‘‘section 1614(f)(2)(B),’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to benefits for months beginning
205
90 or more days after the date of the enactment of this
Act, without regard to whether regulations have been is-
sued to implement such amendments.
SEC. 215. MODIFICATION RESPECTING PARENTAL INCOME
DEEMED TO DISABLED CHILDREN.
(a) IN GENERAL.—Section 1614(f)(2) (42 U.S.C.
1382c(f)(2)) is amended—
(1) by adding at the end of subparagraph (A)
the following: ‘‘For purposes of the preceding sen-
tence, the income of such parent or spouse of such
parent shall be reduced by—
‘‘(A) the allocation for basic needs described in
subparagraph (C)(i); and
‘‘(B) the earned income disregard described in
subparagraph (C)(ii).’’; and
(2) by adding at the end the following:
‘‘(C)(i) The allocation for basic needs described by
this clause is—
‘‘(I) in the case of an eligible individual who
does not have an eligible spouse, an amount equal to
50 percent of the maximum monthly benefit payable
under this title to an eligible individual who does not
have an eligible spouse; or
‘‘(II) in the case of an eligible individual who
has an eligible spouse, an amount equal to 50 per-
206
cent of the maximum monthly benefit payable under
this title to an eligible individual who has an eligible
spouse.
‘‘(ii) The earned income disregard described by this
clause is an amount determined by deducting the first
$780 per year (or proportionally smaller amounts for
shorter periods) plus 64 percent of the remainder from
the earned income (determined in accordance with section
1612(a)(1)) of the parent (and spouse, if any).’’.
(b) PRESERVATION
OF MEDICAID ELIGIBILITY.—
Section 1634 (42 U.S.C. 1383c) is amended by adding
at the end the following:
‘‘(f) Any child who has not attained 18 years of age
and who would be eligible for a payment under this title
but for the amendment made by section 215(a) of the
Peronsal Responsibility and Work Opportunity Act of
1996 shall be deemed to be receiving such payment for
purposes of eligibility of the child for medical assistance
under a State plan approved under title XIX of this Act.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to months after 1996.
207
Subtitle C—State Supplementation
Programs
SEC. 221. REPEAL OF MAINTENANCE OF EFFORT REQUIRE-
MENTS APPLICABLE TO OPTIONAL STATE
PROGRAMS FOR SUPPLEMENTATION OF SSI
BENEFITS.
Section 1618 (42 U.S.C. 1382g) is hereby repealed.
Subtitle 
D—Studies 
Regarding
Supplemental Security Income
Program
SEC. 231. ANNUAL REPORT ON THE SUPPLEMENTAL SECU-
RITY INCOME PROGRAM.
Title XVI (42 U.S.C. 1381 et seq.), as amended by
section 201(c) of this Act, is amended by adding at the
end the following new section:
‘‘ANNUAL REPORT ON PROGRAM
‘‘SEC. 1637. (a) Not later than May 30 of each year,
the Commissioner of Social Security shall prepare and de-
liver a report annually to the President and the Congress
regarding the program under this title, including—
‘‘(1) a comprehensive description of the pro-
gram;
‘‘(2) historical and current data on allowances
and denials, including number of applications and
allowance rates at initial determinations, reconsider-
208
ations, administrative law judge hearings, council of
appeals hearings, and Federal court appeal hearings;
‘‘(3) historical and current data on characteris-
tics of recipients and program costs, by recipient
group (aged, blind, work disabled adults, and chil-
dren);
‘‘(4) projections of future number of recipients
and program costs, through at least 25 years;
‘‘(5) number of redeterminations and continu-
ing disability reviews, and the outcomes of such re-
determinations and reviews;
‘‘(6) data on the utilization of work incentives;
‘‘(7) detailed information on administrative and
other program operation costs;
‘‘(8) summaries of relevant research undertaken
by the Social Security Administration, or by other
researchers;
‘‘(9) State supplementation program operations;
‘‘(10) a historical summary of statutory
changes to this title; and
‘‘(11) such other information as the Commis-
sioner deems useful.
‘‘(b) Each member of the Social Security Advisory
Board shall be permitted to provide an individual report,
or a joint report if agreed, of views of the program under
209
this title, to be included in the annual report under this
section.’’.
SEC. 232. STUDY OF DISABILITY DETERMINATION PROC-
ESS.
(a) IN GENERAL.—Not later than 90 days after the
date of the enactment of this Act, and from funds other-
wise appropriated, the Commissioner of Social Security
shall make arrangements with the National Academy of
Sciences, or other independent entity, to conduct a study
of the disability determination process under titles II and
XVI of the Social Security Act. This study shall be under-
taken in consultation with professionals representing ap-
propriate disciplines.
(b) STUDY COMPONENTS.—The study described in
subsection (a) shall include—
(1) an initial phase examining the appropriate-
ness of, and making recommendations regarding—
(A) the definitions of disability in effect on
the date of the enactment of this Act and the
advantages and disadvantages of alternative
definitions; and
(B) the operation of the disability deter-
mination process, including the appropriate
method of performing comprehensive assess-
210
ments of individuals under age 18 with physical
and mental impairments;
(2) a second phase, which may be concurrent
with the initial phase, examining the validity, reli-
ability, and consistency with current scientific knowl-
edge of the standards and individual listings in the
Listing of Impairments set forth in appendix 1 of
subpart P of part 404 of title 20, Code of Federal
Regulations, and of related evaluation procedures as
promulgated by the Commissioner of Social Security;
and
(3) such other issues as the applicable entity
considers appropriate.
(c) REPORTS AND REGULATIONS.—
(1) REPORTS.—The Commissioner of Social Se-
curity shall request the applicable entity, to submit
an interim report and a final report of the findings
and recommendations resulting from the study de-
scribed in this section to the President and the Con-
gress not later than 18 months and 24 months, re-
spectively, from the date of the contract for such
study, and such additional reports as the Commis-
sioner deems appropriate after consultation with the
applicable entity.
211
(2) REGULATIONS.—The Commissioner of So-
cial Security shall review both the interim and final
reports, and shall issue regulations implementing
any necessary changes following each report.
SEC. 233. STUDY BY GENERAL ACCOUNTING OFFICE.
Not later than January 1, 1998, the Comptroller
General of the United States shall study and report on—
(1) the impact of the amendments made by,
and the provisions of, this title on the supplemental
security income program under title XVI of the So-
cial Security Act; and
(2) extra expenses incurred by families of chil-
dren receiving benefits under such title that are not
covered by other Federal, State, or local programs.
Subtitle E—National Commission
on the Future of Disability
SEC. 241. ESTABLISHMENT.
There is established a commission to be known as the
National Commission on the Future of Disability (referred
to in this subtitle as the ‘‘Commission’’).
SEC. 242. DUTIES OF THE COMMISSION.
(a) IN GENERAL.—The Commission shall develop
and carry out a comprehensive study of all matters related
to the nature, purpose, and adequacy of all Federal pro-
grams serving individuals with disabilities. In particular,
212
the Commission shall study the disability insurance pro-
gram under title II of the Social Security Act and the sup-
plemental security income program under title XVI of
such Act.
(b) MATTERS STUDIED.—The Commission shall pre-
pare an inventory of Federal programs serving individuals
with disabilities, and shall examine—
(1) trends and projections regarding the size
and characteristics of the population of individuals
with disabilities, and the implications of such analy-
ses for program planning;
(2) the feasibility and design of performance
standards for the Nation’s disability programs;
(3) the adequacy of Federal efforts in rehabili-
tation research and training, and opportunities to
improve the lives of individuals with disabilities
through all manners of scientific and engineering re-
search; and
(4) the adequacy of policy research available to
the Federal Government, and what actions might be
undertaken to improve the quality and scope of such
research.
(c) RECOMMENDATIONS.—The Commission shall
submit to the appropriate committees of the Congress and
213
to the President recommendations and, as appropriate,
proposals for legislation, regarding—
(1) which (if any) Federal disability programs
should be eliminated or augmented;
(2) what new Federal disability programs (if
any) should be established;
(3) the suitability of the organization and loca-
tion of disability programs within the Federal Gov-
ernment;
(4) other actions the Federal Government
should take to prevent disabilities and disadvantages
associated with disabilities; and
(5) such other matters as the Commission con-
siders appropriate.
SEC. 243. MEMBERSHIP.
(a) NUMBER AND APPOINTMENT.—
(1) IN
GENERAL.—The Commission shall be
composed of 15 members, of whom—
(A) five shall be appointed by the Presi-
dent, of whom not more than 3 shall be of the
same major political party;
(B) three shall be appointed by the Major-
ity Leader of the Senate;
(C) two shall be appointed by the Minority
Leader of the Senate;
214
(D) three shall be appointed by the Speak-
er of the House of Representatives; and
(E) two shall be appointed by the Minority
Leader of the House of Representatives.
(2) REPRESENTATION.—The Commission mem-
bers shall be chosen based on their education, train-
ing, or experience. In appointing individuals as
members of the Commission, the President and the
Majority and Minority Leaders of the Senate and
the Speaker and Minority Leader of the House of
Representatives shall seek to ensure that the mem-
bership of the Commission reflects the general inter-
ests of the business and taxpaying community and
the diversity of individuals with disabilities in the
United States.
(b) COMPTROLLER
GENERAL.—The Comptroller
General of the United States shall advise the Commission
on the methodology and approach of the study of the Com-
mission.
(c) TERM OF APPOINTMENT.—The members shall
serve on the Commission for the life of the Commission.
(d) MEETINGS.—The Commission shall locate its
headquarters in the District of Columbia, and shall meet
at the call of the Chairperson, but not less than 4 times
each year during the life of the Commission.
215
(e) QUORUM.—Ten members of the Commission shall
constitute a quorum, but a lesser number may hold hear-
ings.
(f) CHAIRPERSON
AND VICE CHAIRPERSON.—Not
later than 15 days after the members of the Commission
are appointed, such members shall designate a Chair-
person and Vice Chairperson from among the members of
the Commission.
(g) CONTINUATION OF MEMBERSHIP.—If a member
of the Commission becomes an officer or employee of any
government after appointment to the Commission, the in-
dividual may continue as a member until a successor mem-
ber is appointed.
(h) VACANCIES.—A vacancy on the Commission shall
be filled in the manner in which the original appointment
was made not later than 30 days after the Commission
is given notice of the vacancy.
(i) COMPENSATION.—Members of the Commission
shall receive no additional pay, allowances, or benefits by
reason of their service on the Commission.
(j) TRAVEL EXPENSES.—Each member of the Com-
mission shall receive travel expenses, including per diem
in lieu of subsistence, in accordance with sections 5702
and 5703 of title 5, United States Code.
216
SEC. 244. STAFF AND SUPPORT SERVICES.
(a) DIRECTOR.—
(1) APPOINTMENT.—Upon consultation with
the members of the Commission, the Chairperson
shall appoint a Director of the Commission.
(2) COMPENSATION.—The Director shall be
paid the rate of basic pay for level V of the Execu-
tive Schedule.
(b) STAFF.—With the approval of the Commission,
the Director may appoint such personnel as the Director
considers appropriate.
(c) APPLICABILITY OF CIVIL SERVICE LAWS.—The
staff of the Commission shall be appointed without regard
to the provisions of title 5, United States Code, governing
appointments in the competitive service, and shall be paid
without regard to the provisions of chapter 51 and sub-
chapter III of chapter 53 of such title relating to classi-
fication and General Schedule pay rates.
(d) EXPERTS
AND CONSULTANTS.—With the ap-
proval of the Commission, the Director may procure tem-
porary and intermittent services under section 3109(b) of
title 5, United States Code.
(e) STAFF OF FEDERAL AGENCIES.—Upon the re-
quest of the Commission, the head of any Federal agency
may detail, on a reimbursable basis, any of the personnel
217
of such agency to the Commission to assist in carrying
out the duties of the Commission under this subtitle.
(f) OTHER RESOURCES.—The Commission shall have
reasonable access to materials, resources, statistical data,
and other information from the Library of Congress and
agencies and elected representatives of the executive and
legislative branches of the Federal Government. The
Chairperson of the Commission shall make requests for
such access in writing when necessary.
(g) PHYSICAL FACILITIES.—The Administrator of
the General Services Administration shall locate suitable
office space for the operation of the Commission. The fa-
cilities shall serve as the headquarters of the Commission
and shall include all necessary equipment and incidentals
required for proper functioning of the Commission.
SEC. 245. POWERS OF COMMISSION.
(a) HEARINGS.—The Commission may conduct pub-
lic hearings or forums at the discretion of the Commission,
at any time and place the Commission is able to secure
facilities and witnesses, for the purpose of carrying out
the duties of the Commission under this subtitle.
(b) DELEGATION OF AUTHORITY.—Any member or
agent of the Commission may, if authorized by the Com-
mission, take any action the Commission is authorized to
take by this section.
218
(c) INFORMATION.—The Commission may secure di-
rectly from any Federal agency information necessary to
enable the Commission to carry out its duties under this
subtitle. Upon request of the Chairperson or Vice Chair-
person of the Commission, the head of a Federal agency
shall furnish the information to the Commission to the ex-
tent permitted by law.
(d) GIFTS, BEQUESTS, AND DEVISES.—The Commis-
sion may accept, use, and dispose of gifts, bequests, or
devises of services or property, both real and personal, for
the purpose of aiding or facilitating the work of the Com-
mission. Gifts, bequests, or devises of money and proceeds
from sales of other property received as gifts, bequests,
or devises shall be deposited in the Treasury and shall be
available for disbursement upon order of the Commission.
(e) MAILS.—The Commission may use the United
States mails in the same manner and under the same con-
ditions as other Federal agencies.
SEC. 246. REPORTS.
(a) INTERIM REPORT.—Not later than 1 year prior
to the date on which the Commission terminates pursuant
to section 247, the Commission shall submit an interim
report to the President and to the Congress. The interim
report shall contain a detailed statement of the findings
and conclusions of the Commission, together with the
219
Commission’s recommendations for legislative and admin-
istrative action, based on the activities of the Commission.
(b) FINAL REPORT.—Not later than the date on
which the Commission terminates, the Commission shall
submit to the Congress and to the President a final report
containing—
(1) a detailed statement of final findings, con-
clusions, and recommendations; and
(2) an assessment of the extent to which rec-
ommendations of the Commission included in the in-
terim report under subsection (a) have been imple-
mented.
(c) PRINTING AND PUBLIC DISTRIBUTION.—Upon
receipt of each report of the Commission under this sec-
tion, the President shall—
(1) order the report to be printed; and
(2) make the report available to the public upon
request.
SEC. 247. TERMINATION.
The Commission shall terminate on the date that is
2 years after the date on which the members of the Com-
mission have met and designated a Chairperson and Vice
Chairperson.
220
SEC. 248. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums
as are necessary to carry out the purposes of the Commis-
sion.
TITLE III—CHILD SUPPORT
SEC. 300. REFERENCE TO SOCIAL SECURITY ACT.
Except as otherwise specifically provided, where ever
in this title an amendment is expressed in terms of an
amendment to or repeal of a section or other provision,
the reference shall be considered to be made to that sec-
tion or other provision of the Social Security Act.
Subtitle A—Eligibility for Services;
Distribution of Payments
SEC. 301. STATE OBLIGATION TO PROVIDE CHILD SUP-
PORT ENFORCEMENT SERVICES.
(a) STATE PLAN REQUIREMENTS.—Section 454 (42
U.S.C. 654) is amended—
(1) by striking paragraph (4) and inserting the
following new paragraph:
‘‘(4) provide that the State will—
‘‘(A) provide services relating to the estab-
lishment of paternity or the establishment,
modification, or enforcement of child support
obligations, as appropriate, under the plan with
respect to—
221
‘‘(i) each child for whom (I) assist-
ance is provided under the State program
funded under part A of this title, (II) ben-
efits or services for foster care mainte-
nance and adoption assistance are provided
under the State program funded under
part B of this title, or (III) medical assist-
ance is provided under the State plan ap-
proved under title XIX, unless the State
agency administering the plan determines
(in accordance with paragraph (29)) that
it is against the best interests of the child
to do so; and
‘‘(ii) any other child, if an individual
applies for such services with respect to
the child; and
‘‘(B) enforce any support obligation estab-
lished with respect to—
‘‘(i) a child with respect to whom the
State provides services under the plan; or
‘‘(ii) the custodial parent of such a
child.’’; and
(2) in paragraph (6)—
(A) by striking ‘‘provide that’’ and insert-
ing ‘‘provide that—’’;
222
(B) by striking subparagraph (A) and in-
serting the following new subparagraph:
‘‘(A) services under the plan shall be made
available to residents of other States on the
same terms as to residents of the State submit-
ting the plan;’’;
(C) in subparagraph (B), by inserting ‘‘on
individuals not receiving assistance under any
State program funded under part A’’ after
‘‘such services shall be imposed’’;
(D) in each of subparagraphs (B), (C),
(D), and (E)—
(i) by indenting the subparagraph in
the same manner as, and aligning the left
margin of the subparagraph with the left
margin of, the matter inserted by subpara-
graph (B) of this paragraph; and
(ii) by striking the final comma and
inserting a semicolon; and
(E) in subparagraph (E), by indenting
each of clauses (i) and (ii) 2 additional ems.
(b) CONTINUATION
OF SERVICES
FOR FAMILIES
CEASING TO RECEIVE ASSISTANCE UNDER THE STATE
PROGRAM FUNDED UNDER PART A.—Section 454 (42
U.S.C. 654) is amended—
223
(1) by striking ‘‘and’’ at the end of paragraph
(23);
(2) by striking the period at the end of para-
graph (24) and inserting ‘‘; and’’; and
(3) by adding after paragraph (24) the follow-
ing new paragraph:
‘‘(25) provide that if a family with respect to
which services are provided under the plan ceases to
receive assistance under the State program funded
under part A, the State shall provide appropriate no-
tice to the family and continue to provide such serv-
ices, subject to the same conditions and on the same
basis as in the case of other individuals to whom
services are furnished under the plan, except that an
application or other request to continue services
shall not be required of such a family and paragraph
(6)(B) shall not apply to the family.’’.
(c) CONFORMING AMENDMENTS.—
(1) Section 452(b) (42 U.S.C. 652(b)) is
amended by 
striking 
‘‘454(6)’’ 
and 
inserting
‘‘454(4)’’.
(2) 
Section 
452(g)(2)(A) 
(42 
U.S.C.
652(g)(2)(A)) is amended by striking ‘‘454(6)’’ each
place it appears and inserting ‘‘454(4)(A)(ii)’’.
224
(3) 
Section 
466(a)(3)(B) 
(42 
U.S.C.
666(a)(3)(B)) is amended by striking ‘‘in the case of
overdue support which a State has agreed to collect
under section 454(6)’’ and inserting ‘‘in any other
case’’.
(4) Section 466(e) (42 U.S.C. 666(e)) is
amended by striking ‘‘paragraph (4) or (6) of sec-
tion 454’’ and inserting ‘‘section 454(4)’’.
SEC. 302. DISTRIBUTION OF CHILD SUPPORT COLLEC-
TIONS.
(a) IN GENERAL.—Section 457 (42 U.S.C. 657) is
amended to read as follows:
‘‘SEC. 457. DISTRIBUTION OF COLLECTED SUPPORT.
‘‘(a) IN GENERAL.—An amount collected on behalf
of a family as support by a State pursuant to a plan ap-
proved under this part shall be distributed as follows:
‘‘(1) FAMILIES RECEIVING ASSISTANCE.—In the
case of a family receiving assistance from the State,
the State shall—
‘‘(A) pay to the Federal Government the
Federal share of the amount so collected; and
‘‘(B) retain, or distribute to the family, the
State share of the amount so collected.
225
‘‘(2) FAMILIES THAT FORMERLY RECEIVED AS-
SISTANCE.—In the case of a family that formerly re-
ceived assistance from the State:
‘‘(A) CURRENT SUPPORT PAYMENTS.—To
the extent that the amount so collected does not
exceed the amount required to be paid to the
family for the month in which collected, the
State shall distribute the amount so collected to
the family.
‘‘(B) PAYMENTS OF ARREARAGES.—To the
extent that the amount so collected exceeds the
amount required to be paid to the family for
the month in which collected, the State shall
distribute the amount so collected as follows:
‘‘(i) DISTRIBUTION
OF
ARREARAGES
THAT
ACCRUED
AFTER
THE
FAMILY
CEASED TO RECEIVE ASSISTANCE.—
‘‘(I) PRE-OCTOBER
1997.—The
provisions of this section (other than
subsection (b)(1)) as in effect and ap-
plied on the day before the date of the
enactment of section 302 of the Bi-
partisan Welfare Reform Act of 1996
shall apply with respect to the dis-
tribution of support arrearages that—
226
‘‘(aa) accrued after the fam-
ily ceased to receive assistance,
and
‘‘(bb) are collected before
October 1, 1997.
‘‘(II) POST-SEPTEMBER
1997.—
With respect the amount so collected
on or after October 1, 1997, or before
such date, at the option of the
State—
‘‘(aa) IN
GENERAL.—The
State shall first distribute the
amount so collected (other than
any amount described in clause
(iv)) to the family to the extent
necessary to satisfy any support
arrearages with respect to the
family that accrued after the
family ceased to receive assist-
ance from the State.
‘‘(bb) REIMBURSEMENT
OF
GOVERNMENTS
FOR
ASSISTANCE
PROVIDED
TO
THE
FAMILY.—
After the application of division
(aa) and clause (ii)(II)(aa) with
227
respect to the amount so col-
lected, the State shall retain the
State share of the amount so col-
lected, and pay to the Federal
Government the Federal share
(as 
defined 
in 
subsection
(c)(2)(A)) of the amount so col-
lected, but only to the extent nec-
essary to reimburse amounts paid
to the family as assistance by the
State.
‘‘(cc) DISTRIBUTION OF THE
REMAINDER
TO
THE
FAMILY.—
To the extent that neither divi-
sion (aa) nor division (bb) applies
to the amount so collected, the
State shall distribute the amount
to the family.
‘‘(ii) DISTRIBUTION OF ARREARAGES
THAT ACCRUED BEFORE THE FAMILY RE-
CEIVED ASSISTANCE.—
‘‘(I) PRE-OCTOBER
2000.—The
provisions of this section (other than
subsection (b)(1)) as in effect and ap-
plied on the day before the date of the
228
enactment of section 302 of the Bi-
partisan Welfare Reform Act of 1996
shall apply with respect to the dis-
tribution of support arrearages that—
‘‘(aa) accrued before the
family received assistance, and
‘‘(bb) are collected before
October 1, 2000.
‘‘(II) POST-SEPTEMBER
2000.—
Unless, based on the report required
by paragraph (4), the Congress deter-
mines otherwise, with respect to the
amount so collected on or after Octo-
ber 1, 2000, or before such date, at
the option of the State—
‘‘(aa) IN
GENERAL.—The
State shall first distribute the
amount so collected (other than
any amount described in clause
(iv)) to the family to the extent
necessary to satisfy any support
arrearages with respect to the
family that accrued before the
family received assistance from
the State.
229
‘‘(bb) REIMBURSEMENT
OF
GOVERNMENTS
FOR
ASSISTANCE
PROVIDED
TO
THE
FAMILY.—
After the application of clause
(i)(II)(aa) and division (aa) with
respect to the amount so col-
lected, the State shall retain the
State share of the amount so col-
lected, and pay to the Federal
Government the Federal share
(as defined in subsection (c)(2))
of the amount so collected, but
only to the extent necessary to
reimburse of the amounts paid to
the family as assistance by the
State.
‘‘(cc) DISTRIBUTION OF THE
REMAINDER
TO
THE
FAMILY.—
To the extent that neither divi-
sion (aa) nor division (bb) applies
to the amount so collected, the
State shall distribute the amount
to the family.
‘‘(iii) DISTRIBUTION OF ARREARAGES
THAT ACCRUED WHILE THE FAMILY RE-
230
CEIVED
ASSISTANCE.—In the case of a
family described in this subparagraph, the
provisions of paragraph (1) shall apply
with respect to the distribution of support
arrearages that accrued while the family
received assistance.
‘‘(iv) AMOUNTS
COLLECTED
PURSU-
ANT
TO
SECTION 464.—Notwithstanding
any other provision of this section, any
amount of support collected pursuant to
section 464 shall be retained by the State
to the extent necessary to reimburse
amounts paid to the family as assistance
by the State. The State shall pay to the
Federal Government the Federal share of
the amounts so retained. To the extent the
amount collected pursuant to section 464
exceeds the amount so retained, the State
shall distribute the excess to the family.
‘‘(v) ORDERING RULES FOR DISTRIBU-
TIONS.—For purposes of this subpara-
graph, the State shall treat any support
arrearages collected as accruing in the fol-
lowing order:
231
‘‘(I) to the period after the fam-
ily ceased to receive assistance;
‘‘(II) to the period before the
family received assistance; and
‘‘(III) to the period while the
family was receiving assistance.
‘‘(3) FAMILIES THAT NEVER RECEIVED ASSIST-
ANCE.—In the case of any other family, the State
shall distribute the amount so collected to the fam-
ily.
‘‘(4) STUDY AND REPORT.—Not later than Oc-
tober 1, 1998, the Secretary shall report to the Con-
gress the Secretary’s findings with respect to—
‘‘(A) whether the distribution of post-as-
sistance arrearages to families has been effec-
tive in moving people off of welfare and keeping
them off of welfare;
‘‘(B) whether early implementation of a
pre-assistance arrearage program by some
States has been effective in moving people off
of welfare and keeping them off of welfare;
‘‘(C) what the overall impact has been of
the amendments made by the Bipartisan Wel-
fare Reform Act of 1996 with respect to child
232
support enforcement in moving people off of
welfare and keeping them off of welfare; and
‘‘(D) based on the information and data
the Secretary has obtained, what changes, if
any, should be made in the policies related to
the distribution of child support arrearages.
‘‘(b) CONTINUATION OF ASSIGNMENTS.—Any rights
to support obligations, which were assigned to a State as
a condition of receiving assistance from the State under
part A and which were in effect on the day before the
date of the enactment of the Bipartisan Welfare Reform
Act of 1996, shall remain assigned after such date.
‘‘(c) DEFINITIONS.—As used in subsection (a):
‘‘(1) ASSISTANCE.—The term ‘assistance from
the State’ means—
‘‘(A) assistance under the State program
funded under part A or under the State plan
approved under part A of this title (as in effect
on the day before the date of the enactment of
the Bipartisan Welfare Reform Act of 1996); or
‘‘(B) benefits under the State plan ap-
proved under part E of this title (as in effect
on the day before the date of the enactment of
the Bipartisan Welfare Reform Act of 1996).
233
‘‘(2) FEDERAL
SHARE.—The term ‘Federal
share’ means that portion of the amount collected
resulting from the application of the Federal medical
percentage in effect for the fiscal year in which the
amount is collected.
‘‘(3) FEDERAL MEDICAL ASSISTANCE PERCENT-
AGE.—The term ‘Federal medical assistance per-
centage’ means—
‘‘(A) the Federal medical assistance per-
centage (as defined in section 1118), in the case
of Puerto Rico, the Virgin Islands, Guam, and
American Samoa; or
‘‘(B) the Federal medical assistance per-
centage (as defined in section 1905(b)) in the
case of any other State.
‘‘(4) STATE
SHARE.—The term ‘State share’
means 100 percent minus the Federal share.
‘‘(d) HOLD HARMLESS PROVISION.—If the amounts
collected which could be retained by the State in the fiscal
year (to the extent necessary to reimburse the State for
amounts paid to families as assistance by the State) are
less than the State share of the amounts collected in fiscal
year 1995 (determined in accordance with section 457 as
in effect on the day before the date of the enactment of
the Bipartisan Welfare Reform Act of 1996), the State
234
share for the fiscal year shall be an amount equal to the
State share in fiscal year 1995.’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 464(a)(1) (42 U.S.C. 664(a)(1)) is
amended by striking ‘‘section 457(b)(4) or (d)(3)’’
and inserting ‘‘section 457’’.
(2) Section 454 (42 U.S.C. 654) is amended—
(A) in paragraph (11)—
(i) by striking ‘‘(11)’’ and inserting
‘‘(11)(A)’’; and
(ii) by inserting after the semicolon
‘‘and’’; and
(B) by redesignating paragraph (12) as
subparagraph (B) of paragraph (11).
(c) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section
shall be effective on October 1, 1996, or earlier at
the State’s option.
(2) CONFORMING AMENDMENTS.—The amend-
ments made by subsection (b)(2) shall become effec-
tive on the date of the enactment of this Act.
235
SEC. 303. PRIVACY SAFEGUARDS.
(a) STATE PLAN REQUIREMENT.—Section 454 (42
U.S.C. 654), as amended by section 301(b) of this Act,
is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(24);
(2) by striking the period at the end of para-
graph (25) and inserting ‘‘; and’’; and
(3) by adding after paragraph (25) the follow-
ing new paragraph:
‘‘(26) will have in effect safeguards, applicable
to all confidential information handled by the State
agency, that are designed to protect the privacy
rights of the parties, including—
‘‘(A) safeguards against unauthorized use
or disclosure of information relating to proceed-
ings or actions to establish paternity, or to es-
tablish or enforce support;
‘‘(B) prohibitions against the release of in-
formation on the whereabouts of 1 party to an-
other party against whom a protective order
with respect to the former party has been en-
tered; and
‘‘(C) prohibitions against the release of in-
formation on the whereabouts of 1 party to an-
other party if the State has reason to believe
236
that the release of the information may result
in physical or emotional harm to the former
party.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall become effective on October 1, 1997.
SEC. 304. RIGHTS TO NOTIFICATION AND HEARINGS.
(a) IN GENERAL.—Section 454 (42 U.S.C. 654), as
amended by section 302(b)(2) of this Act, is amended by
inserting after paragraph (11) the following new para-
graph:
‘‘(12) provide for the establishment of proce-
dures to require the State to provide individuals who
are applying for or receiving services under the State
plan, or who are parties to cases in which services
are being provided under the State plan—
‘‘(A) with notice of all proceedings in
which support obligations might be established
or modified; and
‘‘(B) with a copy of any order establishing
or modifying a child support obligation, or (in
the case of a petition for modification) a notice
of determination that there should be no change
in the amount of the child support award, with-
in 14 days after issuance of such order or de-
termination;’’.
237
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall become effective on October 1, 1997.
Subtitle B—Locate and Case
Tracking
SEC. 311. STATE CASE REGISTRY.
Section 454A, as added by section 344(a)(2) of this
Act, is amended by adding at the end the following new
subsections:
‘‘(e) STATE CASE REGISTRY.—
‘‘(1) CONTENTS.—The automated system re-
quired by this section shall include a registry (which
shall be known as the ‘State case registry’) that con-
tains records with respect to—
‘‘(A) each case in which services are being
provided by the State agency under the State
plan approved under this part; and
‘‘(B) each support order established or
modified in the State on or after October 1,
1998.
‘‘(2) LINKING
OF
LOCAL
REGISTRIES.—The
State case registry may be established by linking
local case registries of support orders through an
automated information network, subject to this sec-
tion.
238
‘‘(3) USE
OF
STANDARDIZED
DATA
ELE-
MENTS.—Such records shall use standardized data
elements for both parents (such as names, social se-
curity numbers and other uniform identification
numbers, dates of birth, and case identification
numbers), and contain such other information (such
as on-case status) as the Secretary may require.
‘‘(4) PAYMENT RECORDS.—Each case record in
the State case registry with respect to which services
are being provided under the State plan approved
under this part and with respect to which a support
order has been established shall include a record
of—
‘‘(A) the amount of monthly (or other peri-
odic) support owed under the order, and other
amounts (including arrearages, interest or late
payment penalties, and fees) due or overdue
under the order;
‘‘(B) any amount described in subpara-
graph (A) that has been collected;
‘‘(C) the distribution of such collected
amounts;
‘‘(D) the birth date of any child for whom
the order requires the provision of support; and
239
‘‘(E) the amount of any lien imposed with
respect to the order pursuant to section
466(a)(4).
‘‘(5) UPDATING AND MONITORING.—The State
agency operating the automated system required by
this section shall promptly establish and maintain,
and regularly monitor, case records in the State case
registry with respect to which services are being pro-
vided under the State plan approved under this part,
on the basis of—
‘‘(A) information on administrative actions
and administrative and judicial proceedings and
orders relating to paternity and support;
‘‘(B) information obtained from compari-
son with Federal, State, or local sources of in-
formation;
‘‘(C) information on support collections
and distributions; and
‘‘(D) any other relevant information.
‘‘(f) INFORMATION COMPARISONS AND OTHER DIS-
CLOSURES OF INFORMATION.—The State shall use the
automated system required by this section to extract infor-
mation from (at such times, and in such standardized for-
mat or formats, as may be required by the Secretary), to
share and compare information with, and to receive infor-
240
mation from, other data bases and information compari-
son services, in order to obtain (or provide) information
necessary to enable the State agency (or the Secretary or
other State or Federal agencies) to carry out this part,
subject to section 6103 of the Internal Revenue Code of
1986. Such information comparison activities shall include
the following:
‘‘(1) FEDERAL CASE REGISTRY OF CHILD SUP-
PORT
ORDERS.—Furnishing to the Federal Case
Registry of Child Support Orders established under
section 453(h) (and update as necessary, with infor-
mation including notice of expiration of orders) the
minimum amount of information on child support
cases recorded in the State case registry that is nec-
essary to operate the registry (as specified by the
Secretary in regulations).
‘‘(2) FEDERAL
PARENT
LOCATOR
SERVICE.—
Exchanging information with the Federal Parent
Locator Service for the purposes specified in section
453.
‘‘(3) TEMPORARY
FAMILY
ASSISTANCE
AND
MEDICAID AGENCIES.—Exchanging information with
State agencies (of the State and of other States) ad-
ministering programs funded under part A, pro-
grams operated under State plans under title XIX,
241
and other programs designated by the Secretary, as
necessary to perform State agency responsibilities
under this part and under such programs.
‘‘(4) INTRASTATE AND INTERSTATE INFORMA-
TION COMPARISONS.—Exchanging information with
other agencies of the State, agencies of other States,
and interstate information networks, as necessary
and appropriate to carry out (or assist other States
to carry out) the purposes of this part.’’.
SEC. 312. COLLECTION AND DISBURSEMENT OF SUPPORT
PAYMENTS.
(a) STATE PLAN REQUIREMENT.—Section 454 (42
U.S.C. 654), as amended by sections 301(b) and 303(a)
of this Act, is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(25);
(2) by striking the period at the end of para-
graph (26) and inserting ‘‘; and’’; and
(3) by adding after paragraph (26) the follow-
ing new paragraph:
‘‘(27) provide that, on and after October 1,
1998, the State agency will—
‘‘(A) operate a State disbursement unit in
accordance with section 454B; and
242
‘‘(B) have sufficient State staff (consisting
of State employees) and (at State option) con-
tractors reporting directly to the State agency
to—
‘‘(i) monitor and enforce support col-
lections through the unit in cases being en-
forced by the State pursuant to section
454(4) (including carrying out the auto-
mated data processing responsibilities de-
scribed in section 454A(g)); and
‘‘(ii) take the actions described in sec-
tion 466(c)(1) in appropriate cases.’’.
(b) ESTABLISHMENT
OF
STATE
DISBURSEMENT
UNIT.—Part D of title IV (42 U.S.C. 651–669), as
amended by section 344(a)(2) of this Act, is amended by
inserting after section 454A the following new section:
‘‘SEC. 454B. COLLECTION AND DISBURSEMENT OF SUP-
PORT PAYMENTS.
‘‘(a) STATE DISBURSEMENT UNIT.—
‘‘(1) IN
GENERAL.—In order for a State to
meet the requirements of this section, the State
agency must establish and operate a unit (which
shall be known as the ‘State disbursement unit’) for
the collection and disbursement of payments under
support orders—
243
‘‘(A) in all cases being enforced by the
State pursuant to section 454(4); and
‘‘(B) in all cases not being enforced by the
State under this part in which the support
order is initially issued in the State on or after
January 1, 1994, and in which the wages of the
absent parent are subject to withholding pursu-
ant to section 466(a)(8)(B).
‘‘(2) OPERATION.—The State disbursement
unit shall be operated—
‘‘(A) directly by the State agency (or 2 or
more State agencies under a regional coopera-
tive agreement), or (to the extent appropriate)
by a contractor responsible directly to the State
agency; and
‘‘(B) except in cases described in para-
graph (1)(B), in coordination with the auto-
mated system established by the State pursuant
to section 454A.
‘‘(3) 
LINKING
OF
LOCAL
DISBURSEMENT
UNITS.—The State disbursement unit may be estab-
lished by linking local disbursement units through
an automated information network, subject to this
section, if the Secretary agrees that the system will
not cost more nor take more time to establish or op-
244
erate than a centralized system. In addition, employ-
ers shall be given 1 location to which income with-
holding is sent.
‘‘(b) REQUIRED PROCEDURES.—The State disburse-
ment unit shall use automated procedures, electronic proc-
esses, and computer-driven technology to the maximum
extent feasible, efficient, and economical, for the collection
and disbursement of support payments, including proce-
dures—
‘‘(1) for receipt of payments from parents, em-
ployers, and other States, and for disbursements to
custodial parents and other obligees, the State agen-
cy, and the agencies of other States;
‘‘(2) for accurate identification of payments;
‘‘(3) to ensure prompt disbursement of the cus-
todial parent’s share of any payment; and
‘‘(4) to furnish to any parent, upon request,
timely information on the current status of support
payments under an order requiring payments to be
made by or to the parent.
‘‘(c) TIMING OF DISBURSEMENTS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the State disbursement unit shall distrib-
ute all amounts payable under section 457(a) within
2 business days after receipt from the employer or
245
other source of periodic income, if sufficient infor-
mation identifying the payee is provided.
‘‘(2) PERMISSIVE
RETENTION
OF
ARREAR-
AGES.—The State disbursement unit may delay the
distribution of collections toward arrearages until
the resolution of any timely appeal with respect to
such arrearages.
‘‘(d) BUSINESS DAY DEFINED.—As used in this sec-
tion, the term ‘business day’ means a day on which State
offices are open for regular business.’’.
(c) USE OF AUTOMATED SYSTEM.—Section 454A, as
added by section 344(a)(2) and as amended by section 311
of this Act, is amended by adding at the end the following
new subsection:
‘‘(g) COLLECTION AND DISTRIBUTION OF SUPPORT
PAYMENTS.—
‘‘(1) IN
GENERAL.—The State shall use the
automated system required by this section, to the
maximum extent feasible, to assist and facilitate the
collection and disbursement of support payments
through the State disbursement unit operated under
section 454B, through the performance of functions,
including, at a minimum—
246
‘‘(A) transmission of orders and notices to
employers (and other debtors) for the withhold-
ing of wages and other income—
‘‘(i) within 2 business days after re-
ceipt from a court, another State, an em-
ployer, the Federal Parent Locator Service,
or another source recognized by the State
of notice of, and the income source subject
to, such withholding; and
‘‘(ii) using uniform formats prescribed
by the Secretary;
‘‘(B) ongoing monitoring to promptly iden-
tify failures to make timely payment of support;
and
‘‘(C) automatic use of enforcement proce-
dures (including procedures authorized pursu-
ant to section 466(c)) if payments are not time-
ly made.
‘‘(2) BUSINESS
DAY
DEFINED.—As used in
paragraph (1), the term ‘business day’ means a day
on which State offices are open for regular busi-
ness.’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall become effective on October 1, 1998.
247
SEC. 313. STATE DIRECTORY OF NEW HIRES.
(a) STATE PLAN REQUIREMENT.—Section 454 (42
U.S.C. 654), as amended by sections 301(b), 303(a) and
312(a) of this Act, is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(26);
(2) by striking the period at the end of para-
graph (27) and inserting ‘‘; and’’; and
(3) by adding after paragraph (27) the follow-
ing new paragraph:
‘‘(28) provide that, on and after October 1,
1997, the State will operate a State Directory of
New Hires in accordance with section 453A.’’.
(b) STATE DIRECTORY OF NEW HIRES.—Part D of
title IV (42 U.S.C. 651–669) is amended by inserting
after section 453 the following new section:
‘‘SEC. 453A. STATE DIRECTORY OF NEW HIRES.
‘‘(a) ESTABLISHMENT.—
‘‘(1) IN GENERAL.—
‘‘(A) REQUIREMENT
FOR STATES
THAT
HAVE NO DIRECTORY.—Except as provided in
subparagraph (B), not later than October 1,
1997, each State shall establish an automated
directory (to be known as the ‘State Directory
of New Hires’) which shall contain information
248
supplied in accordance with subsection (b) by
employers on each newly hired employee.
‘‘(B) STATES WITH NEW HIRE REPORTING
IN EXISTENCE.—A State which has a new hire
reporting law in existence on the date of the en-
actment of this section may continue to operate
under the State law, but the State must meet
the requirements of this section (other than
subsection (f)) not later than October 1, 1997.
‘‘(2) DEFINITIONS.—As used in this section:
‘‘(A) EMPLOYEE.—The term ‘employee’—
‘‘(i) means an individual who is an
employee within the meaning of chapter 24
of the Internal Revenue Code of 1986; and
‘‘(ii) does not include an employee of
a Federal or State agency performing in-
telligence or counterintelligence functions,
if the head of such agency has determined
that reporting pursuant to paragraph (1)
with respect to the employee could endan-
ger the safety of the employee or com-
promise an ongoing investigation or intel-
ligence mission.
‘‘(B) EMPLOYER.—
249
‘‘(i) IN
GENERAL.—The term ‘em-
ployer’ has the meaning given such term in
section 3401(d) of the Internal Revenue
Code of 1996 and includes any govern-
mental entity and any labor organization.
‘‘(ii) 
LABOR
ORGANIZATION.—The
term ‘labor organization’ shall have the
meaning given such term in section 2(5) of
the National Labor Relations Act, and in-
cludes any entity (also known as a ‘hiring
hall’) which is used by the organization
and an employer to carry out requirements
described in section 8(f)(3) of such Act of
an agreement between the organization
and the employer.
‘‘(b) EMPLOYER INFORMATION.—
‘‘(1) REPORTING REQUIREMENT.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraphs (B) and (C), each employer shall
furnish to the Directory of New Hires of the
State in which a newly hired employee works, a
report that contains the name, address, and so-
cial security number of the employee, and the
name and address of, and identifying number
250
assigned under section 6109 of the Internal
Revenue Code of 1986 to, the employer.
‘‘(B) MULTISTATE EMPLOYERS.—An em-
ployer that has employees who are employed in
2 or more States and that transmits reports
magnetically or electronically may comply with
subparagraph (A) by designating 1 State in
which such employer has employees to which
the employer will transmit the report described
in subparagraph (A), and transmitting such re-
port to such State. Any employer that transmits
reports pursuant to this subparagraph shall no-
tify the Secretary in writing as to which State
such employer designates for the purpose of
sending reports.
‘‘(C) FEDERAL
GOVERNMENT
EMPLOY-
ERS.—Any department, agency, or instrumen-
tality of the United States shall comply with
subparagraph (A) by transmitting the report
described in subparagraph (A) to the National
Directory of New Hires established pursuant to
section 453.
‘‘(2) TIMING
OF
REPORT.—Each State may
provide the time within which the report required by
251
paragraph (1) shall be made with respect to an em-
ployee, but such report shall be made—
‘‘(A) not later than 20 days after the date
the employer hires the employee; or
‘‘(B) in the case of an employer transmit-
ting reports magnetically or electronically, by 2
monthly transmissions (if necessary) not less
than 12 days nor more than 16 days apart.
‘‘(c) REPORTING FORMAT AND METHOD.—Each re-
port required by subsection (b) shall be made on a W–
4 form or, at the option of the employer, an equivalent
form, and may be transmitted by 1st class mail, magneti-
cally, or electronically.
‘‘(d) CIVIL MONEY PENALTIES ON NONCOMPLYING
EMPLOYERS.—The State shall have the option to set a
State civil money penalty which shall be less than—
‘‘(1) $25; or
‘‘(2) $500 if, under State law, the failure is the
result of a conspiracy between the employer and the
employee to not supply the required report or to
supply a false or incomplete report.
‘‘(e) ENTRY OF EMPLOYER INFORMATION.—Infor-
mation shall be entered into the data base maintained by
the State Directory of New Hires within 5 business days
of receipt from an employer pursuant to subsection (b).
252
‘‘(f) INFORMATION COMPARISONS.—
‘‘(1) IN
GENERAL.—Not later than May 1,
1998, an agency designated by the State shall, di-
rectly or by contract, conduct automated compari-
sons of the social security numbers reported by em-
ployers pursuant to subsection (b) and the social se-
curity numbers appearing in the records of the State
case registry for cases being enforced under the
State plan.
‘‘(2) NOTICE OF MATCH.—When an information
comparison conducted under paragraph (1) reveals a
match with respect to the social security number of
an individual required to provide support under a
support order, the State Directory of New Hires
shall provide the agency administering the State
plan approved under this part of the appropriate
State with the name, address, and social security
number of the employee to whom the social security
number is assigned, and the name of, and identify-
ing number assigned under section 6109 of the In-
ternal Revenue Code of 1986 to the employer.
‘‘(g) TRANSMISSION OF INFORMATION.—
‘‘(1) TRANSMISSION
OF
WAGE
WITHHOLDING
NOTICES TO EMPLOYERS.—Within 2 business days
after the date information regarding a newly hired
253
employee is entered into the State Directory of New
Hires, the State agency enforcing the employee’s
child support obligation shall transmit a notice to
the employer of the employee directing the employer
to withhold from the wages of the employee an
amount equal to the monthly (or other periodic)
child support obligation (including any past due sup-
port obligation) of the employee, unless the employ-
ee’s wages are not subject to withholding pursuant
to section 466(b)(3).
‘‘(2) TRANSMISSIONS TO THE NATIONAL DIREC-
TORY OF NEW HIRES.—
‘‘(A) NEW HIRE INFORMATION.—Within 3
business days after the date information re-
garding a newly hired employee is entered into
the State Directory of New Hires, the State Di-
rectory of New Hires shall furnish the informa-
tion to the National Directory of New Hires.
‘‘(B) WAGE
AND
UNEMPLOYMENT
COM-
PENSATION
INFORMATION.—The State Direc-
tory of New Hires shall, on a quarterly basis,
furnish to the National Directory of New Hires
extracts of the reports required under section
303(a)(6) to be made to the Secretary of Labor
concerning the wages and unemployment com-
254
pensation paid to individuals, by such dates, in
such format, and containing such information
as the Secretary of Health and Human Services
shall specify in regulations.
‘‘(3) BUSINESS DAY DEFINED.—As used in this
subsection, the term ‘business day’ means a day on
which State offices are open for regular business.
‘‘(h) OTHER USES OF NEW HIRE INFORMATION.—
‘‘(1) LOCATION
OF
CHILD
SUPPORT
OBLI-
GORS.—The agency administering the State plan ap-
proved under this part shall use information received
pursuant to subsection (f)(2) to locate individuals
for purposes of establishing paternity and establish-
ing, modifying, and enforcing child support obliga-
tions.
‘‘(2) VERIFICATION OF ELIGIBILITY FOR CER-
TAIN
PROGRAMS.—A State agency responsible for
administering a program specified in section 1137(b)
shall have access to information reported by employ-
ers pursuant to subsection (b) of this section for
purposes of verifying eligibility for the program.
‘‘(3) ADMINISTRATION OF EMPLOYMENT SECU-
RITY AND WORKERS’ COMPENSATION.—State agen-
cies operating employment security and workers’
compensation programs shall have access to informa-
255
tion reported by employers pursuant to subsection
(b) for the purposes of administering such pro-
grams.’’.
(c) 
QUARTERLY
WAGE
REPORTING.—Section
1137(a)(3) (42 U.S.C. 1320b–7(a)(3)) is amended—
(1) by inserting ‘‘(including State and local gov-
ernmental entities and labor organizations (as de-
fined in section 453A(a)(2)(B)(iii))’’ after ‘‘employ-
ers’’; and
(2) by inserting ‘‘, and except that no report
shall be filed with respect to an employee of a State
or local agency performing intelligence or counter-
intelligence functions, if the head of such agency has
determined that filing such a report could endanger
the safety of the employee or compromise an ongo-
ing investigation or intelligence mission’’ after
‘‘paragraph (2)’’.
SEC. 314. AMENDMENTS CONCERNING INCOME WITHHOLD-
ING.
(a) MANDATORY INCOME WITHHOLDING.—
(1) 
IN
GENERAL.—Section 
466(a)(1) 
(42
U.S.C. 666(a)(1)) is amended to read as follows:
‘‘(1)(A) Procedures described in subsection (b)
for the withholding from income of amounts payable
256
as support in cases subject to enforcement under the
State plan.
‘‘(B) Procedures under which the wages of a
person with a support obligation imposed by a sup-
port order issued (or modified) in the State before
October 1, 1996, if not otherwise subject to with-
holding under subsection (b), shall become subject to
withholding as provided in subsection (b) if arrear-
ages occur, without the need for a judicial or admin-
istrative hearing.’’.
(2) CONFORMING AMENDMENTS.—
(A) Section 466(b) (42 U.S.C. 666(b)) is
amended in the matter preceding paragraph
(1), by striking ‘‘subsection (a)(1)’’ and insert-
ing ‘‘subsection (a)(1)(A)’’.
(B) 
Section 
466(b)(4) 
(42 
U.S.C.
666(b)(4)) is amended to read as follows:
‘‘(4)(A) Such withholding must be carried out
in full compliance with all procedural due process re-
quirements of the State, and the State must send
notice to each noncustodial parent to whom para-
graph (1) applies—
‘‘(i) that the withholding has commenced;
and
257
‘‘(ii) of the procedures to follow if the non-
custodial parent desires to contest such with-
holding on the grounds that the withholding or
the amount withheld is improper due to a mis-
take of fact.
‘‘(B) The notice under subparagraph (A) of this
paragraph shall include the information provided to
the employer under paragraph (6)(A).’’.
(C) 
Section 
466(b)(5) 
(42 
U.S.C.
666(b)(5)) is amended by striking all that fol-
lows ‘‘administered by’’ and inserting ‘‘the
State through the State disbursement unit es-
tablished pursuant to section 454B, in accord-
ance with the requirements of section 454B.’’.
(D) Section 466(b)(6)(A) (42 U.S.C.
666(b)(6)(A)) is amended—
(i) in clause (i), by striking ‘‘to the
appropriate agency’’ and all that follows
and inserting ‘‘to the State disbursement
unit within 2 business days after the date
the amount would (but for this subsection)
have been paid or credited to the employee,
for distribution in accordance with this
part. The employer shall comply with the
procedural rules relating to income with-
258
holding of the State in which the employee
works, regardless of the State where the
notice originates.’’.
(ii) in clause (ii), by inserting ‘‘be in
a standard format prescribed by the Sec-
retary, and’’ after ‘‘shall’’; and
(iii) by adding at the end the follow-
ing new clause:
‘‘(iii) As used in this subparagraph, the term
‘business day’ means a day on which State offices
are open for regular business.’’.
(E) Section 466(b)(6)(D) (42 U.S.C.
666(b)(6)(D)) is amended by striking ‘‘any em-
ployer’’ and all that follows and inserting ‘‘any
employer who—
‘‘(i) discharges from employment, refuses
to employ, or takes disciplinary action against
any noncustodial parent subject to wage with-
holding required by this subsection because of
the existence of such withholding and the obli-
gations or additional obligations which it im-
poses upon the employer; or
‘‘(ii) fails to withhold support from wages,
or to pay such amounts to the State disburse-
ment unit in accordance with this subsection.’’.
259
(F) Section 466(b) (42 U.S.C. 666(b)) is
amended by adding at the end the following
new paragraph:
‘‘(11) Procedures under which the agency ad-
ministering the State plan approved under this part
may execute a withholding order without advance
notice to the obligor, including issuing the withhold-
ing order through electronic means.’’.
(b) CONFORMING AMENDMENT.—Section 466(c) (42
U.S.C. 666(c)) is repealed.
SEC. 315. LOCATOR INFORMATION FROM INTERSTATE NET-
WORKS.
Section 466(a) (42 U.S.C. 666(a)) is amended by
adding at the end the following new paragraph:
‘‘(12) LOCATOR
INFORMATION
FROM
INTER-
STATE NETWORKS.—Procedures to ensure that all
Federal and State agencies conducting activities
under this part have access to any system used by
the State to locate an individual for purposes relat-
ing to motor vehicles or law enforcement.’’.
SEC. 316. EXPANSION OF THE FEDERAL PARENT LOCATOR
SERVICE.
(a) EXPANDED AUTHORITY TO LOCATE INDIVID-
UALS
AND ASSETS.—Section 453 (42 U.S.C. 653) is
amended—
260
(1) in subsection (a), by striking all that follows
‘‘subsection (c))’’ and inserting ‘‘, for the purpose of
establishing parentage, establishing, setting the
amount of, modifying, or enforcing child support ob-
ligations, or enforcing child custody or visitation or-
ders—
‘‘(1) information on, or facilitating the discov-
ery of, the location of any individual—
‘‘(A) who is under an obligation to pay
child support or provide child custody or visita-
tion rights;
‘‘(B) against whom such an obligation is
sought;
‘‘(C) to whom such an obligation is owed,
including the individual’s social security number (or
numbers), most recent address, and the name, ad-
dress, and employer identification number of the in-
dividual’s employer;
‘‘(2) information on the individual’s wages (or
other income) from, and benefits of, employment (in-
cluding rights to or enrollment in group health care
coverage); and
‘‘(3) information on the type, status, location,
and amount of any assets of, or debts owed by or
to, any such individual.’’; and
261
(2) in subsection (b)—
(A) in the matter preceding paragraph (1),
by striking ‘‘social security’’ and all that follows
through ‘‘absent parent’’ and inserting ‘‘infor-
mation described in subsection (a)’’; and
(B) in the flush paragraph at the end, by
adding the following: ‘‘No information shall be
disclosed to any person if the State has notified
the Secretary that the State has reasonable evi-
dence of domestic violence or child abuse and
the disclosure of such information could be
harmful to the custodial parent or the child of
such parent. Information received or transmit-
ted pursuant to this section shall be subject to
the safeguard provisions contained in section
454(26).’’.
(b) AUTHORIZED PERSON FOR INFORMATION RE-
GARDING
VISITATION
RIGHTS.—Section 453(c) (42
U.S.C. 653(c)) is amended—
(1) in paragraph (1), by striking ‘‘support’’ and
inserting ‘‘support or to seek to enforce orders pro-
viding child custody or visitation rights’’; and
(2) in paragraph (2), by striking ‘‘, or any
agent of such court; and’’ and inserting ‘‘or to issue
262
an order against a resident parent for child custody
or visitation rights, or any agent of such court;’’.
(c) REIMBURSEMENT FOR INFORMATION FROM FED-
ERAL
AGENCIES.—Section 
453(e)(2) 
(42 
U.S.C.
653(e)(2)) is amended in the 4th sentence by inserting
‘‘in an amount which the Secretary determines to be rea-
sonable payment for the information exchange (which
amount shall not include payment for the costs of obtain-
ing, compiling, or maintaining the information)’’ before
the period.
(d) REIMBURSEMENT
FOR
REPORTS
BY
STATE
AGENCIES.—Section 453 (42 U.S.C. 653) is amended by
adding at the end the following new subsection:
‘‘(g) REIMBURSEMENT
FOR REPORTS
BY STATE
AGENCIES.—The Secretary may reimburse Federal and
State agencies for the costs incurred by such entities in
furnishing information requested by the Secretary under
this section in an amount which the Secretary determines
to be reasonable payment for the information exchange
(which amount shall not include payment for the costs of
obtaining, compiling, or maintaining the information).’’.
(e) CONFORMING AMENDMENTS.—
(1) Sections 452(a)(9), 453(a), 453(b), 463(a),
463(e), and 463(f) (42 U.S.C. 652(a)(9), 653(a),
653(b), 663(a), 663(e), and 663(f)) are each amend-
263
ed by inserting ‘‘Federal’’ before ‘‘Parent’’ each
place such term appears.
(2) Section 453 (42 U.S.C. 653) is amended in
the heading by adding ‘‘FEDERAL’’ before ‘‘PAR-
ENT’’.
(f) NEW COMPONENTS.—Section 453 (42 U.S.C.
653), as amended by subsection (d) of this section, is
amended by adding at the end the following new sub-
sections:
‘‘(h) FEDERAL CASE REGISTRY OF CHILD SUPPORT
ORDERS.—
‘‘(1) IN GENERAL.—Not later than October 1,
1998, in order to assist States in administering pro-
grams under State plans approved under this part
and programs funded under part A, and for the
other purposes specified in this section, the Sec-
retary shall establish and maintain in the Federal
Parent Locator Service an automated registry
(which shall be known as the ‘Federal Case Registry
of Child Support Orders’), which shall contain ab-
stracts of support orders and other information de-
scribed in paragraph (2) with respect to each case
in each State case registry maintained pursuant to
section 454A(e), as furnished (and regularly up-
264
dated), pursuant to section 454A(f), by State agen-
cies administering programs under this part.
‘‘(2) CASE INFORMATION.—The information re-
ferred to in paragraph (1) with respect to a case
shall be such information as the Secretary may
specify in regulations (including the names, social
security numbers or other uniform identification
numbers, and State case identification numbers) to
identify the individuals who owe or are owed support
(or with respect to or on behalf of whom support ob-
ligations are sought to be established), and the State
or States which have the case.
‘‘(i) NATIONAL DIRECTORY OF NEW HIRES.—
‘‘(1) IN GENERAL.—In order to assist States in
administering programs under State plans approved
under this part and programs funded under part A,
and for the other purposes specified in this section,
the Secretary shall, not later than October 1, 1996,
establish and maintain in the Federal Parent Loca-
tor Service an automated directory to be known as
the National Directory of New Hires, which shall
contain the information supplied pursuant to section
453A(g)(2).
‘‘(2) ENTRY
OF
DATA.—Information shall be
entered into the data base maintained by the Na-
265
tional Directory of New Hires within 2 business
days of receipt pursuant to section 453A(g)(2).
‘‘(3) 
ADMINISTRATION
OF
FEDERAL
TAX
LAWS.—The Secretary of the Treasury shall have
access to the information in the National Directory
of New Hires for purposes of administering section
32 of the Internal Revenue Code of 1986, or the ad-
vance payment of the earned income tax credit
under section 3507 of such Code, and verifying a
claim with respect to employment in a tax return.
‘‘(4) LIST OF MULTISTATE EMPLOYERS.—The
Secretary shall maintain within the National Direc-
tory of New Hires a list of multistate employers that
report information regarding newly hired employees
pursuant to section 453A(b)(1)(B), and the State
which each such employer has designated to receive
such information.
‘‘(j) INFORMATION COMPARISONS AND OTHER DIS-
CLOSURES.—
‘‘(1) VERIFICATION BY SOCIAL SECURITY AD-
MINISTRATION.—
‘‘(A) IN
GENERAL.—The Secretary shall
transmit information on individuals and em-
ployers maintained under this section to the So-
cial Security Administration to the extent nec-
266
essary for verification in accordance with sub-
paragraph (B).
‘‘(B) VERIFICATION BY SSA.—The Social
Security Administration shall verify the accu-
racy of, correct, or supply to the extent pos-
sible, and report to the Secretary, the following
information supplied by the Secretary pursuant
to subparagraph (A):
‘‘(i) The name, social security num-
ber, and birth date of each such individual.
‘‘(ii) The employer identification num-
ber of each such employer.
‘‘(2) INFORMATION
COMPARISONS.—For the
purpose of locating individuals in a paternity estab-
lishment case or a case involving the establishment,
modification, or enforcement of a support order, the
Secretary shall—
‘‘(A) compare information in the National
Directory of New Hires against information in
the support case abstracts in the Federal Case
Registry of Child Support Orders not less often
than every 2 business days; and
‘‘(B) within 2 such days after such a com-
parison reveals a match with respect to an indi-
267
vidual, report the information to the State
agency responsible for the case.
‘‘(3) INFORMATION COMPARISONS AND DISCLO-
SURES OF INFORMATION IN ALL REGISTRIES FOR
TITLE IV PROGRAM PURPOSES.—To the extent and
with the frequency that the Secretary determines to
be effective in assisting States to carry out their re-
sponsibilities under programs operated under this
part and programs funded under part A, the Sec-
retary shall—
‘‘(A) compare the information in each com-
ponent of the Federal Parent Locator Service
maintained under this section against the infor-
mation in each other such component (other
than the comparison required by paragraph
(2)), and report instances in which such a com-
parison reveals a match with respect to an indi-
vidual to State agencies operating such pro-
grams; and
‘‘(B) disclose information in such registries
to such State agencies.
‘‘(4) PROVISION OF NEW HIRE INFORMATION
TO THE SOCIAL SECURITY ADMINISTRATION.—The
National Directory of New Hires shall provide the
Commissioner of Social Security with all information
268
in the National Directory, which shall be used to de-
termine the accuracy of payments under the supple-
mental security income program under title XVI and
in connection with benefits under title II.
‘‘(5) RESEARCH.—The Secretary may provide
access to information reported by employers pursu-
ant to section 453A(b) for research purposes found
by the Secretary to be likely to contribute to achiev-
ing the purposes of part A or this part, but without
personal identifiers.
‘‘(k) FEES.—
‘‘(1) FOR SSA VERIFICATION.—The Secretary
shall reimburse the Commissioner of Social Security,
at a rate negotiated between the Secretary and the
Commissioner, for the costs incurred by the Com-
missioner in performing the verification services de-
scribed in subsection (j).
‘‘(2) FOR INFORMATION FROM STATE DIREC-
TORIES OF NEW HIRES.—The Secretary shall reim-
burse costs incurred by State directories of new
hires in furnishing information as required by sub-
section (j)(3), at rates which the Secretary deter-
mines to be reasonable (which rates shall not include
payment for the costs of obtaining, compiling, or
maintaining such information).
269
‘‘(3) FOR INFORMATION FURNISHED TO STATE
AND FEDERAL AGENCIES.—A State or Federal agen-
cy that receives information from the Secretary pur-
suant to this section shall reimburse the Secretary
for costs incurred by the Secretary in furnishing the
information, at rates which the Secretary determines
to be reasonable (which rates shall include payment
for the costs of obtaining, verifying, maintaining,
and comparing the information).
‘‘(l) RESTRICTION ON DISCLOSURE AND USE.—In-
formation in the Federal Parent Locator Service, and in-
formation resulting from comparisons using such informa-
tion, shall not be used or disclosed except as expressly pro-
vided in this section, subject to section 6103 of the Inter-
nal Revenue Code of 1986.
‘‘(m) INFORMATION INTEGRITY
AND SECURITY.—
The Secretary shall establish and implement safeguards
with respect to the entities established under this section
designed to—
‘‘(1) ensure the accuracy and completeness of
information in the Federal Parent Locator Service;
and
‘‘(2) restrict access to confidential information
in the Federal Parent Locator Service to authorized
270
persons, and restrict use of such information to au-
thorized purposes.
‘‘(n) FEDERAL GOVERNMENT REPORTING.—Each
department, agency, and instrumentality of the United
States shall on a quarterly basis report to the Federal
Parent Locator Service the name and social security num-
ber of each employee and the wages paid to the employee
during the previous quarter, except that such a report
shall not be filed with respect to an employee of a depart-
ment, agency, or instrumentality performing intelligence
or counterintelligence functions, if the head of such de-
partment, agency, or instrumentality has determined that
filing such a report could endanger the safety of the em-
ployee or compromise an ongoing investigation or intel-
ligence mission.’’.
(g) CONFORMING AMENDMENTS.—
(1) TO PART D OF TITLE IV OF THE SOCIAL SE-
CURITY ACT.—
(A) 
Section 
454(8)(B) 
(42 
U.S.C.
654(8)(B)) is amended to read as follows:
‘‘(B) the Federal Parent Locator Service
established under section 453;’’.
(B) Section 454(13) (42 U.S.C.654(13)) is
amended by inserting ‘‘and provide that infor-
mation requests by parents who are residents of
271
other States be treated with the same priority
as requests by parents who are residents of the
State submitting the plan’’ before the semi-
colon.
(2) TO FEDERAL UNEMPLOYMENT TAX ACT.—
Section 3304(a)(16) of the Internal Revenue Code of
1986 is amended—
(A) by striking ‘‘Secretary of Health, Edu-
cation, and Welfare’’ each place such term ap-
pears and inserting ‘‘Secretary of Health and
Human Services’’;
(B) in subparagraph (B), by striking
‘‘such information’’ and all that follows and in-
serting ‘‘information furnished under subpara-
graph (A) or (B) is used only for the purposes
authorized under such subparagraph;’’;
(C) by striking ‘‘and’’ at the end of sub-
paragraph (A);
(D) by redesignating subparagraph (B) as
subparagraph (C); and
(E) by inserting after subparagraph (A)
the following new subparagraph:
‘‘(B) wage and unemployment compensa-
tion information contained in the records of
such agency shall be furnished to the Secretary
272
of Health and Human Services (in accordance
with regulations promulgated by such Sec-
retary) as necessary for the purposes of the Na-
tional Directory of New Hires established under
section 453(i) of the Social Security Act, and’’.
(3) TO STATE GRANT PROGRAM UNDER TITLE
III OF THE SOCIAL SECURITY ACT.—Subsection (h)
of section 303 (42 U.S.C. 503) is amended to read
as follows:
‘‘(h)(1) The State agency charged with the adminis-
tration of the State law shall, on a reimbursable basis—
‘‘(A) disclose quarterly, to the Secretary of
Health and Human Services, wage and claim infor-
mation, as required pursuant to section 453(i)(1),
contained in the records of such agency;
‘‘(B) ensure that information provided pursuant
to subparagraph (A) meets such standards relating
to correctness and verification as the Secretary of
Health and Human Services, with the concurrence
of the Secretary of Labor, may find necessary; and
‘‘(C) establish such safeguards as the Secretary
of Labor determines are necessary to insure that in-
formation disclosed under subparagraph (A) is used
only for purposes of section 453(i)(1) in carrying out
273
the child support enforcement program under title
IV.
‘‘(2) Whenever the Secretary of Labor, after reason-
able notice and opportunity for hearing to the State agen-
cy charged with the administration of the State law, finds
that there is a failure to comply substantially with the re-
quirements of paragraph (1), the Secretary of Labor shall
notify such State agency that further payments will not
be made to the State until the Secretary of Labor is satis-
fied that there is no longer any such failure. Until the
Secretary of Labor is so satisfied, the Secretary shall
make no future certification to the Secretary of the Treas-
ury with respect to the State.
‘‘(3) For purposes of this subsection—
‘‘(A) the term ‘wage information’ means infor-
mation regarding wages paid to an individual, the
social security account number of such individual,
and the name, address, State, and the Federal em-
ployer identification number of the employer paying
such wages to such individual; and
‘‘(B) the term ‘claim information’ means infor-
mation regarding whether an individual is receiving,
has received, or has made application for, unemploy-
ment compensation, the amount of any such com-
pensation being received (or to be received by such
274
individual), and the individual’s current (or most re-
cent) home address.’’.
(4) DISCLOSURE OF CERTAIN INFORMATION TO
AGENTS OF CHILD SUPPORT ENFORCEMENT AGEN-
CIES.—
(A) IN GENERAL.—Paragraph (6) of sec-
tion 6103(l) of the Internal Revenue Code of
1986 (relating to disclosure of return informa-
tion to Federal, State, and local child support
enforcement agencies) is amended by redesig-
nating subparagraph (B) as subparagraph (C)
and by inserting after subparagraph (A) the fol-
lowing new subparagraph:
‘‘(B) DISCLOSURE TO CERTAIN AGENTS.—
The following information disclosed to any child
support enforcement agency under subpara-
graph (A) with respect to any individual with
respect to whom child support obligations are
sought to be established or enforced may be dis-
closed by such agency to any agent of such
agency which is under contract with such agen-
cy to carry out the purposes described in sub-
paragraph (C):
275
‘‘(i) The address and social security
account number (or numbers) of such indi-
vidual.
‘‘(ii) The amount of any reduction
under section 6402(c) (relating to offset of
past-due support against overpayments) in
any overpayment otherwise payable to such
individual.’’
(B) CONFORMING AMENDMENTS.—
(i) Paragraph (3) of section 6103(a)
of such Code is amended by striking
‘‘(l)(12)’’ and inserting ‘‘paragraph (6) or
(12) of subsection (l)’’.
(ii) Subparagraph (C) of section
6103(l)(6) of such Code, as redesignated
by subsection (a), is amended to read as
follows:
‘‘(C) RESTRICTION ON DISCLOSURE.—In-
formation may be disclosed under this para-
graph only for purposes of, and to the extent
necessary in, establishing and collecting child
support obligations from, and locating, individ-
uals owing such obligations.’’
(iii) The material following subpara-
graph (F) of section 6103(p)(4) of such
276
Code is amended by striking ‘‘subsection
(l)(12)(B)’’ 
and 
inserting 
‘‘paragraph
(6)(A) or (12)(B) of subsection (l)’’.
SEC. 317. COLLECTION AND USE OF SOCIAL SECURITY
NUMBERS FOR USE IN CHILD SUPPORT EN-
FORCEMENT.
(a) STATE LAW REQUIREMENT.—Section 466(a) (42
U.S.C. 666(a)), as amended by section 315 of this Act,
is amended by adding at the end the following new para-
graph:
‘‘(13) RECORDING OF SOCIAL SECURITY NUM-
BERS
IN
CERTAIN
FAMILY
MATTERS.—Procedures
requiring that the social security number of—
‘‘(A) any applicant for a professional li-
cense, commercial driver’s license, occupational
license, or marriage license be recorded on the
application;
‘‘(B) any individual who is subject to a di-
vorce decree, support order, or paternity deter-
mination or acknowledgment be placed in the
records relating to the matter; and
‘‘(C) any individual who has died be placed
in the records relating to the death and be re-
corded on the death certificate.
277
For purposes of subparagraph (A), if a State allows
the use of a number other than the social security
number, the State shall so advise any applicants.’’.
(b) 
CONFORMING
AMENDMENTS.—Section
205(c)(2)(C) (42 U.S.C. 405(c)(2)(C)), as amended by
section 321(a)(9) of the Social Security Independence and
Program Improvements Act of 1994, is amended—
(1) in clause (i), by striking ‘‘may require’’ and
inserting ‘‘shall require’’;
(2) in clause (ii), by inserting after the 1st sen-
tence the following: ‘‘In the administration of any
law involving the issuance of a marriage certificate
or license, each State shall require each party named
in the certificate or license to furnish to the State
(or political subdivision thereof), or any State agen-
cy having administrative responsibility for the law
involved, the social security number of the party.’’;
(3) in clause (ii), by inserting ‘‘or marriage cer-
tificate’’ after ‘‘Such numbers shall not be recorded
on the birth certificate’’.
(4) in clause (vi), by striking ‘‘may’’ and insert-
ing ‘‘shall’’; and
(5) by adding at the end the following new
clauses:
278
‘‘(x) An agency of a State (or a politi-
cal subdivision thereof) charged with the
administration of any law concerning the
issuance or renewal of a license, certificate,
permit, or other authorization to engage in
a profession, an occupation, or a commer-
cial activity shall require all applicants for
issuance or renewal of the license, certifi-
cate, permit, or other authorization to pro-
vide the applicant’s social security number
to the agency for the purpose of admin-
istering such laws, and for the purpose of
responding to requests for information
from an agency operating pursuant to part
D of title IV.
‘‘(xi) All divorce decrees, support or-
ders, and paternity determinations issued,
and all paternity acknowledgments made,
in each State shall include the social secu-
rity number of each party to the decree,
order, determination, or acknowledgment
in the records relating to the matter, for
the purpose of responding to requests for
information from an agency operating pur-
suant to part D of title IV.’’.
279
Subtitle C—Streamlining and
Uniformity of Procedures
SEC. 321. ADOPTION OF UNIFORM STATE LAWS.
Section 466 (42 U.S.C. 666) is amended by adding
at the end the following new subsection:
‘‘(f) UNIFORM
INTERSTATE
FAMILY
SUPPORT
ACT.—
‘‘(1) ENACTMENT AND USE.—In order to sat-
isfy section 454(20)(A), on and after January 1,
1998, each State must have in effect the Uniform
Interstate Family Support Act, as approved by the
American Bar Association on February 9, 1993, to-
gether with any amendments officially adopted be-
fore January 1, 1998, by the National Conference of
Commissioners on Uniform State Laws.
‘‘(2) EMPLOYERS
TO
FOLLOW
PROCEDURAL
RULES OF STATE WHERE EMPLOYEE WORKS.—The
State law enacted pursuant to paragraph (1) shall
provide that an employer that receives an income
withholding order or notice pursuant to section 501
of the Uniform Interstate Family Support Act follow
the procedural rules that apply with respect to such
order or notice under the laws of the State in which
the obligor works.’’.
280
SEC. 322. IMPROVEMENTS TO FULL FAITH AND CREDIT
FOR CHILD SUPPORT ORDERS.
Section 1738B of title 28, United States Code, is
amended—
(1) in subsection (a)(2), by striking ‘‘subsection
(e)’’ and inserting ‘‘subsections (e), (f), and (i)’’;
(2) in subsection (b), by inserting after the 2d
undesignated paragraph the following:
‘‘ ‘child’s home State’ means the State in which
a child lived with a parent or a person acting as par-
ent for at least 6 consecutive months immediately
preceding the time of filing of a petition or com-
parable pleading for support and, if a child is less
than 6 months old, the State in which the child lived
from birth with any of them. A period of temporary
absence of any of them is counted as part of the 6-
month period.’’;
(3) in subsection (c), by inserting ‘‘by a court
of a State’’ before ‘‘is made’’;
(4) in subsection (c)(1), by inserting ‘‘and sub-
sections (e), (f), and (g)’’ after ‘‘located’’;
(5) in subsection (d)—
(A) by inserting ‘‘individual’’ before ‘‘con-
testant’’; and
(B) by striking ‘‘subsection (e)’’ and in-
serting ‘‘subsections (e) and (f)’’;
281
(6) in subsection (e), by striking ‘‘make a modi-
fication of a child support order with respect to a
child that is made’’ and inserting ‘‘modify a child
support order issued’’;
(7) in subsection (e)(1), by inserting ‘‘pursuant
to subsection (i)’’ before the semicolon;
(8) in subsection (e)(2)—
(A) by inserting ‘‘individual’’ before ‘‘con-
testant’’ each place such term appears; and
(B) by striking ‘‘to that court’s making the
modification and assuming’’ and inserting ‘‘with
the State of continuing, exclusive jurisdiction
for a court of another State to modify the order
and assume’’;
(9) by redesignating subsections (f) and (g) as
subsections (g) and (h), respectively;
(10) by inserting after subsection (e) the follow-
ing new subsection:
‘‘(f) RECOGNITION OF CHILD SUPPORT ORDERS.—
If 1 or more child support orders have been issued in this
or another State with regard to an obligor and a child,
a court shall apply the following rules in determining
which order to recognize for purposes of continuing, exclu-
sive jurisdiction and enforcement:
287
SEC. 325. STATE LAWS PROVIDING EXPEDITED PROCE-
DURES.
(a) STATE LAW REQUIREMENTS.—Section 466 (42
U.S.C. 666), as amended by section 314 of this Act, is
amended—
(1) in subsection (a)(2), by striking the first
sentence and inserting the following: ‘‘Expedited ad-
ministrative and judicial procedures (including the
procedures specified in subsection (c)) for establish-
ing paternity and for establishing, modifying, and
enforcing support obligations.’’; and
(2) by inserting after subsection (b) the follow-
ing new subsection:
‘‘(c) EXPEDITED
PROCEDURES.—The procedures
specified in this subsection are the following:
‘‘(1) ADMINISTRATIVE ACTION BY STATE AGEN-
CY.—Procedures which give the State agency the au-
thority to take the following actions relating to es-
tablishment or enforcement of support orders, with-
out the necessity of obtaining an order from any
other judicial or administrative tribunal, and to rec-
ognize and enforce the authority of State agencies of
other States) to take the following actions:
‘‘(A) GENETIC TESTING.—To order genetic
testing for the purpose of paternity establish-
ment as provided in section 466(a)(5).