I
104TH CONGRESS
1ST SESSION
H. R. 1250
To promote self-sufficiency and stability among families receiving aid to
families with dependent children by increasing employment opportunities;
to increase State flexibility in operating a Job Opportunities and Basic
Skills Training Program; to improve the interstate enforcement of child
support and parentage court orders; and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH 15, 1995
Mrs. MINK of Hawaii (for herself, Mr. ABERCROMBIE, Mr. ACKERMAN, Mr.
BECERRA, Mr. BEILENSON, Mr. BISHOP, Ms. BROWN of Florida, Mr.
CLAY, Mrs. CLAYTON, Mr. CLYBURN, Mr. COLEMAN, Miss COLLINS of
Michigan, Mrs. COLLINS of Illinois, Mr. CONYERS, Mr. DE LA GARZA,
Mr. DELLUMS, Mr. ENGEL, Mr. EVANS, Mr. FALEOMAVAEGA, Mr.
FATTAH, Mr. FIELDS of Louisiana, Mr. FLAKE, Mr. FOGLIETTA, Mr.
FRANK of Massachusetts, Ms. FURSE, Mr. GONZALEZ, Mr. GUTIERREZ,
Mr. HASTINGS of Florida, Mr. HILLIARD, Mr. HINCHEY, Ms. JACKSON-
LEE, Mr. JEFFERSON, Ms. EDDIE BERNICE JOHNSON of Texas, Mr.
JOHNSTON of Florida, Mr. LEWIS of Georgia, Mr. MARTINEZ, Mr.
MCDERMOTT, Ms. MCKINNEY, Mrs. MEEK of Florida, Mr. MFUME, Mr.
MILLER of California, Mr. MINETA, Ms. NORTON, Mr. OLVER, Mr.
OWENS, Mr. PASTOR, Mr. PAYNE of New Jersey, Ms. PELOSI, Mr. REYN-
OLDS, Mr. RICHARDSON, Mr. ROMERO-BARCELO´, Ms. ROYBAL-ALLARD,
Mr. RUSH, Mr. SABO, Mr. SANDERS, Mrs. SCHROEDER, Mr. SCOTT, Mr.
SERRANO, Mr. STARK, Mr. STOKES, Mr. STUDDS, Mr. THOMPSON, Mr.
TORRES, Mr. TOWNS, Mr. TUCKER, Mr. UNDERWOOD, Ms. VELA´ZQUEZ,
Mr. VENTO, Ms. WATERS, Mr. WATT of North Carolina, Mr. WAXMAN,
Mr. WILLIAMS, Ms. WOOLSEY, Mr. WYNN, and Mr. YATES) introduced
the following bill; which was referred to the Committee on Ways and
Means, and in addition to the Committees on Economic and Educational
Opportunities, Agriculture, Commerce, the Judiciary, National Security,
and Government Reform and Oversight, for a period to be subsequently
determined by the Speaker, in each case for consideration of such provi-
sions as fall within the jurisdiction of the committee concerned
A BILL
To promote self-sufficiency and stability among families re-
ceiving aid to families with dependent children by in-
creasing employment opportunities; to increase State
flexibility in operating a Job Opportunities and Basic
Skills Training Program; to improve the interstate en-
forcement of child support and parentage court orders;
and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Family Stability and
Work Act of 1995’’.
SEC. 2. REFERENCE TO SOCIAL SECURITY ACT.
Except as otherwise specifically provided, wherever in
this Act an amendment is expressed in terms of an amend-
ment to or repeal of a section or other provision, the ref-
erence shall be considered to be made to that section or
other provision of the Social Security Act.
SEC. 3. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Reference to Social Security Act.
Sec. 3. Table of contents.
TITLE I—IMPROVING AID TO FAMILIES WITH DEPENDENT
CHILDREN
Sec. 101. Increase in standard earned income disregard.
Sec. 102. Increase in State flexibility regarding recipient participation in jobs
program.
Sec. 103. Elimination of different treatment of 2-parent families.
Sec. 104. Extension of transitional child care guarantee.
Sec. 105. Increase in Federal matching rates for child care.
Sec. 106. Increase in jobs program funding.
Sec. 107. Requirement with respect to jobs program participation rate.
Sec. 108. Increase in matching rates for States whose recipients leave AFDC
for paid employment.
Sec. 109. Increase in at-risk child care funding.
Sec. 110. Improvements in jobs program self-sufficiency planning and case
management.
Sec. 111. Change in mandatory services and activities under the jobs program.
Sec. 112. Jobs creation and work experience program.
Sec. 113. Provisions generally applicable to the jobs program.
TITLE II—MAKING WORK PAY
Sec. 201. Transitional medicaid benefits.
Sec. 202. Temporary exclusion of earned income for purposes of determining
rent paid for units in federally assisted housing.
Sec. 203. Continuation of food stamp benefits.
TITLE III—IMPROVING CHILD SUPPORT ENFORCEMENT
Subtitle A—Eligibility and Other Matters Concerning Title IV–D Program
Clients
Sec. 301. State obligation to provide paternity establishment and child support
enforcement services.
Sec. 302. Distribution of payments.
Sec. 303. Due process rights.
Sec. 304. Privacy safeguards.
Subtitle B—Program Administration and Funding
Sec. 311. Federal matching payments.
Sec. 312. Performance-based incentives and penalties.
Sec. 313. Federal and State reviews and audits.
Sec. 314. Required reporting procedures.
Sec. 315. Automated data processing requirements.
Sec. 316. Director of CSE program; staffing study.
Sec. 317. Funding for secretarial assistance to State programs.
Sec. 318. Reports and data collection by the Secretary.
Subtitle C—Locate and Case Tracking
Sec. 321. Central State and case registry.
Sec. 322. Centralized collection and disbursement of support payments.
Sec. 323. Amendments concerning income withholding.
Sec. 324. Locator information from interstate networks.
Sec. 325. Expanded Federal Parent Locator Service.
Sec. 326. Use of social security numbers.
Subtitle D—Streamlining and Uniformity of Procedures
Sec. 331. Adoption of uniform State laws
Sec. 332. Improvements to full faith and credit for child support orders.
Sec. 333. State laws providing expedited procedures
Subtitle E—Paternity Establishment
Sec. 341. State laws concerning paternity establishment.
Sec. 342. Outreach for voluntary paternity establishment.
Subtitle F—Establishment and Modification of Support Orders
Sec. 351. National Child Support Guidelines Commission.
Sec. 352. Simplified process for review and adjustment of child support orders.
Subtitle G—Enforcement of Support Orders
Sec. 361. Federal income tax refund offset.
Sec. 362. Internal revenue service collection of arrears.
Sec. 363. Authority to collect support from Federal employees.
Sec. 364. Enforcement of child support obligations of members of the Armed
Forces.
Sec. 365. Motor vehicle liens.
Sec. 366. Voiding of fraudulent transfers.
Sec. 367. State law authorizing suspension of licenses.
Sec. 368. Reporting arrearages to credit bureaus.
Sec. 369. Extended statute of limitation for collection of arrearages.
Sec. 370. Charges for arrearages.
Sec. 371. Denial of passports for nonpayment of child support.
Sec. 372. International child support enforcement.
Subtitle H—Medical Support
Sec. 381. Technical correction to ERISA definition of medical child support
order.
Subtitle I—Effect of Enactment
Sec. 391. Effective dates.
Sec. 392. Severability.
TITLE IV—REAUTHORIZATION OF CHILD CARE AND
DEVELOPMENT BLOCK GRANT
Sec. 431. Reauthorization of child care and development block grant.
TITLE V—AMENDMENTS TO THE INTERNAL REVENUE CODE
Sec. 501. Increase in top marginal rate under section 11.
TITLE VI—EFFECTIVE DATE
Sec. 601. Effective date.
TITLE 
I—IMPROVING 
AID 
TO
FAMILIES WITH DEPENDENT
CHILDREN
SEC. 101. INCREASE IN STANDARD EARNED INCOME DIS-
REGARD.
Clause (ii) of section 402(a)(8)(A) (42 U.S.C.
602(a)(8)(A)(ii)) is amended by striking ‘‘$90’’ and in-
serting ‘‘$170’’.
SEC. 102. INCREASE IN STATE FLEXIBILITY REGARDING RE-
CIPIENT PARTICIPATION IN JOBS PROGRAM.
(a) CHANGES IN STATE PLAN REQUIREMENTS.—
Paragraph (19) of section 402(a) (42 U.S.C. 602(a)(19))
is amended to read as follows:
‘‘(19) provide—
‘‘(A) that the State has in effect and oper-
ation a job opportunities and basic skills train-
ing program which meets the requirements of
part F;
‘‘(B) that, not later than 30 days after ap-
proving the application of a family for aid
under the State plan approved under this part,
the State shall—
‘‘(i) conduct an initial assessment of
the self-sufficiency needs of the family that
includes an assessment of the family cir-
cumstances, the educational, child care,
and other supportive services needs, and
the skills, prior work experience, and em-
ployability of each recipient;
‘‘(ii) determine whether it would be
appropriate to require or permit any mem-
ber of the family to participate in the pro-
gram of the State under part F; and
‘‘(iii) advise the family of the avail-
ability of child care assistance under sec-
tion 402(g) for participation in education,
training, and employment;
‘‘(C) that—
‘‘(i) the costs of attendance by a re-
cipient at an institution of higher edu-
cation (as defined in section 481(a) of the
Higher Education Act of 1965), or a
school or course of vocational or technical
training, shall not constitute federally re-
imbursable expenses for purposes of sec-
tion 403; and
‘‘(ii) the costs of day care, transpor-
tation, and other services which are nec-
essary (as determined by the State agency)
for such attendance in accordance with
section 402(g) are eligible for Federal re-
imbursement so long as the recipient is
making satisfactory progress in such insti-
tution, school, or course and such attend-
ance is consistent with the employment
goals in the recipient’s self-sufficiency plan
developed under part F;
‘‘(D) that—
‘‘(i) if an individual who is required
by the State to participate in the program
of the State under part F fails without
good cause to participate or refuses with-
out good cause to accept employment in
which such individual is able to engage
which is offered through the public employ-
ment offices of the State, or is otherwise
offered by an employer if the offer of such
employer is determined to be a bona fide
offer of employment—
‘‘(I) the family of the individual
shall cease to be eligible for aid under
this part; unless
‘‘(II) such individual is a member
of a family in which both parents are
living at home, and his or her spouse
care for any incapacitated individual
living in the same home as a depend-
ent child) is necessary for an individ-
ual to participate in the program or
accept employment, such care is not
available, and the State agency fails
to provide such care; and
‘‘(H) the State agency may require a par-
ticipant in the program to accept a job only if
such agency assures that the family of such
participant will experience no net loss of cash
income resulting from acceptance of the job;
and any costs incurred by the State agency as
a result of this subparagraph shall be treated as
expenditures with respect to which section
403(a)(1) or 403(a)(2) applies;’’.
(b) CHANGE
IN PAYMENT
TO STATES.—Section
403(l) (42 U.S.C. 603(l)) is amended by striking para-
graph (2).
SEC. 103. ELIMINATION OF DIFFERENT TREATMENT OF 2-
PARENT FAMILIES.
(a) IN
GENERAL.—Section 402(a) (42 U.S.C.
602(a)) is amended by striking paragraph (41).
(b) CONFORMING AMENDMENTS.—
(1) 
Section 
402(a)(38)(B) 
(42 
U.S.C.
602(a)(38)(B)) is amended by striking ‘‘or in section
407(a)’’.
(2) Section 402(a) (42 U.S.C. 602(a)) is
amended by striking paragraph (42).
(3) 
Section 
402(g)(1)(A)(ii) 
(42 
U.S.C.
602(g)(1)(A)(ii)) is amended by striking ‘‘hours of,
or increased income from,’’ and inserting ‘‘income
from’’.
(4) Section 406(a)(1) (42 U.S.C. 606(a)(1)) is
amended by striking ‘‘who has been deprived’’ and
all that follows through ‘‘incapacity of a parent’’.
(5) Section 406(b)(1) (42 U.S.C. 606(b)(1)) is
amended by striking ‘‘and if such relative’’ and all
that follows through ‘‘section 407’’.
(6) Section 407 (42 U.S.C. 607) is hereby re-
pealed.
(7) Section 472(a) (42 U.S.C. 672(a)) is
amended by striking ‘‘or of section 407’’.
(8) 
Section 
473(a)(2)(A)(i) 
(42 
U.S.C.
672(a)(2)(A)(i)) is amended by striking ‘‘or section
407’’.
(9) Section 1115(b) (42 U.S.C. 1315(b)) is
amended by striking paragraph (5).
(10) Section 1115 (42 U.S.C. 1315) is amended
by striking subsection (d).
(11) Section 1902(a)(10)(A)(i) (42 U.S.C.
1396a(a)(10)(A)(i)) 
is 
amended 
by 
striking
subclause (V) and by redesignating subclauses (VI)
and (VII) as subclauses (V) and (VI), respectively.
(12) Section 1905 (42 U.S.C. 1396d) is amend-
ed by striking subsection (m).
(13) 
Section 
1905(n)(1) 
(42 
U.S.C.
1396d(n)(1)) is amended—
(A) in subparagraph (A)—
(i) by striking ‘‘(or’’ and all that fol-
lows through ‘‘407)’’; and
(ii) by adding ‘‘or’’ at the end; and
(B) by striking subparagraph (B).
(14) Section 1925(a) (42 U.S.C. 1396r–6(a)) is
amended by striking ‘‘hours of, or income from,’’
and inserting ‘‘income from’’.
(15) Section 204(b)(2) of the Family Support
Act of 1988 (42 U.S.C. 681 note) is amended by
striking the semicolon and all that follows through
‘‘1998’’.
SEC. 104. EXTENSION OF TRANSITIONAL CHILD CARE
GUARANTEE.
Clause (iii) of section 402(g)(1)(A) (42 U.S.C.
602(g)(1)(A)(iii)) is amended to read as follows:
‘‘(iii) A family shall only be eligible for child care pro-
vided under clause (ii)—
‘‘(I) for a period of 24 months after the last
month for which the family received aid to families
with dependent children under this part; or
‘‘(II) until the income of the family exceeds by
more than 200 percent the income official poverty
line (as defined by the Office of Management and
Budget, and revised annually in accordance with sec-
tion 673(2) of the Omnibus Budget Reconciliation
Act of 1981) applicable to a family of the size in-
volved;
whichever occurs first.’’.
SEC. 105. INCREASE IN FEDERAL MATCHING RATES FOR
CHILD CARE.
(a) AFDC AND TRANSITIONAL CHILD CARE.—
(1) INCREASE IN RATES FOR SEVERAL STATES
AND DISTRICT OF COLUMBIA.—Clause (i) of section
402(g)(3)(A) (42 U.S.C. 602(g)(3)(A)(i)) is amend-
ed by striking ‘‘1905(b)).’’ and inserting ‘‘1905(b)),
increased by 10 percentage points.’’.
(2) INCREASE IN RATES FOR OTHER STATES.—
Clause (ii) of section 402(g)(3)(A) (42 U.S.C.
602(g)(3)(A)(ii)) is amended by striking ‘‘1118).’’
and inserting ‘‘1118), increased by 10 percentage
points.’’.
(b) AT-RISK CHILD CARE.—Subparagraph (A) of
section 403(n)(1) (42 U.S.C. 603(n)(1)(A)) is amended
by inserting ‘‘increased by 10 percentage points’’ before
‘‘of the expenditures’’.
SEC. 106. INCREASE IN JOBS PROGRAM FUNDING.
Paragraph (3) of section 403(k) (42 U.S.C.
603(k)(3)) is amended—
(1) in subparagraph (E), by striking ‘‘and’’ at
the end;
(2) in subparagraph (F), by striking ‘‘and each
succeeding fiscal year,’’ and inserting a comma at
the end; and
(3) by inserting after subparagraph (F) the fol-
lowing:
‘‘(G) $1,500,000,000 in the case of fiscal year
1997,
‘‘(H) $1,900,000,000 in the case of fiscal year
1998,
‘‘(I) $2,800,000,000 in the case of fiscal year
1999,
participate in the State program established under
part F.
‘‘(3) Each State that operates a program under part
F for a fiscal year shall submit to the Secretary a report
on the participation rate of the State for the fiscal year.
‘‘(4)(A) If a State reports that the State has failed
to achieve the participation rate required by paragraph (1)
for the fiscal year, the Secretary may make recommenda-
tions for changes in the State program established under
part F. The State may elect to follow such recommenda-
tions, and shall demonstrate to the Secretary how the
State will achieve the required participation rates.
‘‘(B) Notwithstanding subparagraph (A), if a State
fails to achieve the participation rate required by para-
graph (1) for 2 consecutive fiscal years, the Secretary may
require the State to make changes in the State program
established under part F.’’.
(b) CHANGE
IN PAYMENT
TO STATES.—Section
403(l) (42 U.S.C. 603(l)) is amended by striking para-
graphs (3) and (4).
SEC. 108. INCREASE IN MATCHING RATES FOR STATES
WHOSE RECIPIENTS LEAVE AFDC FOR PAID
EMPLOYMENT.
(a) INCREASE IN JOBS MATCHING RATE.—Section
403(l) (42 U.S.C. 603(l)), as amended by section 102(b),
is amended by inserting after paragraph (1) the following:
‘‘(2)(A) Notwithstanding paragraph (1), the Sec-
retary shall pay to a State, with respect to expenditures
made by the State that are described in paragraph
(1)(A)(ii)(II), an amount equal to the greater of 70 per-
cent or the Federal medical assistance percentage (as de-
fined in section 1118 in the case of any State to which
section 1108 applies, or as defined in section 1905(b) in
the case of any other State) increased by 10 percent if
the number of qualified families with respect to the State
for a fiscal year equals or exceeds the proportion specified
in subparagraph (B) for such year of the total number
of individuals participating in the State program estab-
lished under part F during such year.
‘‘(B) The proportion specified in this subparagraph
is—
‘‘(i) 1⁄4 for fiscal year 1998;
‘‘(ii) 1⁄3 for fiscal year 1999;
‘‘(iii) 1⁄2 for fiscal year 2000, and for each fiscal
year thereafter.
‘‘(C) For purposes of subparagraph (A), the term
‘qualified family’ means, with respect to a State for a fis-
cal year, a family—
‘‘(i) that was receiving aid from the State under
this part during such year;
‘‘(ii) a member of which ceased to participate in
the State program established under part F during
such year as the result of the employment of such
member in a job (other than a job provided under
the job creation and work experience program under
section 482(e)); and
‘‘(iii) ceased to receive such aid as a result of
such employment.’’
(b) INCREASE
IN
TRANSITIONAL
CHILD
CARE
RATE.—Paragraph (3) of section 402(g) (42 U.S.C.
602(g)(3)) is amended by adding at the end the following:
‘‘(C) Notwithstanding subparagraph (A), in the case
of amounts expended for child care pursuant to paragraph
(1)(A)(ii) by any State that satisfies the requirement in
section 403(l)(2)(A), the applicable rate for purposes of
section 403(a) shall be the percentage specified in sub-
paragraph (A) for such amounts, increased by 10 percent-
age points.’’.
SEC. 109. INCREASE IN AT-RISK CHILD CARE FUNDING.
Subparagraph (B) of section 403(n)(2) (42 U.S.C.
603(n)(2)(B)) of the Social Security Act is amended—
(1) in clause (iv), by striking ‘‘and’’ at the end;
(2) in clause (v), by striking ‘‘1995, and for
each fiscal year thereafter.’’ and inserting ‘‘1995;’’;
and
(3) by adding at the end the following:
‘‘(vi) $300,000,000 for fiscal year 1996;
‘‘(vii) $800,000,000 for fiscal year 1997;
‘‘(viii) $1,300,000,000 for fiscal year 1998;
‘‘(ix) $1,800,000,000 for fiscal year 1999;
‘‘(x) $2,300,000,000 for fiscal year 2000; and
‘‘(xi) $2,800,000,000 for fiscal year 2001.’’.
SEC. 110. IMPROVEMENTS IN JOBS PROGRAM SELF-SUFFI-
CIENCY PLANNING AND CASE MANAGEMENT.
Section 482(b) (42 U.S.C. 682(b)) is amended—
(1) by amending the subsection heading to read
as follows:
‘‘(b) SELF-SUFFICIENCY PLAN.—’’;
(2) by striking paragraph (1)(A), redesignating
paragraph (1)(B) as paragraph (1)(A), and adjust-
ing the placement and margins of paragraph (1)(A)
(as so redesignated) accordingly;
(3) in paragraph (1)(A) (as redesignated by
paragraph (2))—
(A) by striking ‘‘such assessment,’’ and in-
serting ‘‘the initial assessment of self-suffi-
ciency under section 402(a)(19)(B),’’; and
(B) by striking ‘‘employability plan’’ each
place such term appears and inserting ‘‘self-suf-
ficiency plan’’;
(4) in paragraph (2)—
(A) by striking ‘‘initial assessment and re-
view and the development of the employability
plan’’ and inserting ‘‘initial assessment of self-
sufficiency and the development of the self-suf-
ficiency plan’’;
(B) by striking ‘‘the State agency may re-
quire’’ and inserting ‘‘the State agency shall re-
quire’’; and
(C) by striking ‘‘If the State agency exer-
cises the option under the preceding sentence,
the State agency must’’ and inserting ‘‘The
State agency must’’; and
(5) in paragraph (3)—
(A) by striking ‘‘may assign’’ and inserting
‘‘shall assign’’; and
(B) by adding at the end the following:
‘‘Case management services under this paragraph shall
continue for a period of not fewer than 90 days after a
participant becomes employed, and, at the option of the
State, the State may extend such period to not more than
365 days.’’.
SEC. 111. CHANGE IN MANDATORY SERVICES AND ACTIVI-
TIES UNDER THE JOBS PROGRAM.
(a) MANDATORY AND PERMISSIBLE SERVICES AND
ACTIVITIES.—Subparagraph (A) of section 482(d)(1) (42
U.S.C. 682(d)(1)(A)) is amended to read as follows:
‘‘(d) SERVICES AND ACTIVITIES UNDER THE PRO-
GRAM.—(1)(A) In carrying out the program, each State
shall make available a broad range of services and activi-
ties to aid in carrying out the purpose of this part. Such
services and activities—
‘‘(i) shall include—
‘‘(I) educational activities (as appropriate),
including high school or equivalent education
(combined with training as needed), basic and
remedial education to achieve a basic literacy
level, and education for individuals with limited
English proficiency;
‘‘(II) job skills training;
‘‘(III) job readiness activities to help pre-
pare participants for work;
‘‘(IV) job development and job placement;
‘‘(V) a job creation and work experience
program as described in subsection (e); and
‘‘(VI) group and individual job search as
described in subsection (f); and
‘‘(ii) may include—
‘‘(I) on-the-job training; and
‘‘(II) any other work experience program
approved by the Secretary.’’.
(b) ELIMINATION OF REQUIREMENT WITH RESPECT
TO CERTAIN EDUCATIONAL ACTIVITIES.—Section 482(d)
(42 U.S.C. 682(d)) is amended—
(1) by striking paragraph (2); and
(2) by redesignating paragraph (3) as para-
graph (2).
SEC. 112. JOBS CREATION AND WORK EXPERIENCE PRO-
GRAM.
Section 482 (42 U.S.C. 682) is amended—
(1) by striking subsections (e) and (f);
(2) by redesignating subsections (g), (h), and (i) as
subsections (f), (g), and (h); and
(3) by inserting after subsection (d) the follow-
ing:
‘‘(e) JOBS CREATION AND WORK EXPERIENCE PRO-
GRAM.—
‘‘(1) IN GENERAL.—In carrying out the pro-
gram, each State shall establish a jobs creation and
work experience program in accordance with this
subsection.
‘‘(2) GENERAL
REQUIREMENTS.—A jobs cre-
ation and work experience program is a program
that provides employment in the public sector or in
the private sector in accordance with the following
requirements:
‘‘(A) PARTICIPATION.—A State shall re-
quire an individual to participate in the jobs
creation and work experience program if the in-
dividual—
‘‘(i) is eligible to receive aid under the
State plan approved under part A;
‘‘(ii) is prepared to commence employ-
ment, as determined under the self-suffi-
ciency plan developed for the individual
under subsection (b)(1)(A); and
‘‘(iii) has demonstrated that the indi-
vidual is not otherwise able to obtain em-
ployment in the public or private sectors.
‘‘(B) PERIODIC JOB SEARCH REQUIRED.—
As a continuing condition of eligibility to par-
ticipate in the jobs creation and work experi-
ence program, each participant in the program
shall periodically engage in job search.
‘‘(C) ENTRY-LEVEL POSITIONS.—
‘‘(i) IN GENERAL.—Subject to clause
(ii), the jobs creation and work experience
program shall provide entry-level positions,
to the extent practicable.
‘‘(ii) NO
INFRINGEMENT
ON
PRO-
MOTIONAL
OPPORTUNITIES.—A job shall
not be created in a promotional line that
will infringe in any way upon the pro-
motional opportunities of persons employed
in jobs not subsidized under this sub-
section.
‘‘(D) MAXIMUM
PERIOD
OF
SUBSIDIZED
EMPLOYMENT
AT
SAME
POSITION.—The jobs
creation and work experience program shall not
permit an individual to remain in the program
for more than 24 months.
‘‘(E) MINIMUM WAGE REQUIREMENT.—An
individual participating in the jobs creation and
work experience program may not be required
to accept any employment if the wage rate for
such employment does not equal or exceed the
minimum wage rate then in effect under section
6 of the Fair Labor Standards Act of 1938.
‘‘(3) WAGES TREATED AS EARNED INCOME.—
Wages paid under a program established under this
subsection shall be considered to be earned income
for purposes of any provision of law.
‘‘(4) PRESERVATION
OF
ELIGIBILITY
FOR
CHILD
CARE
ASSISTANCE
AND
MEDICAID
BENE-
FITS.—Any individual who becomes ineligible to re-
ceive aid under a State plan approved under part A
by reason of income from employment provided
under a program established under this subsection
to the caretaker relative of the family of which the
individual is a member shall for purposes of eligi-
bility 
for 
child 
care 
benefits 
under 
section
402(g)(1)(A)(i) and for purposes of eligibility for
medical assistance under the State plan approved
under title XIX, be considered to be receiving such
aid for so long as the subsidized employment pro-
vided to the individual under this subsection contin-
ues.’’.
SEC. 113. PROVISIONS GENERALLY APPLICABLE TO THE
JOBS PROGRAM.
Section 484 (42 U.S.C. 684) is amended by striking
subsections (b), (c), and (d) and inserting the following:
‘‘(b)(1)(A) Funds provided for a program established
under section 482 may be used only for programs that
do not duplicate any employment activity otherwise avail-
able in the locality of the program.
‘‘(B) Funds provided for a program established under
section 482 shall not be paid to a private entity to conduct
activities that are the same or substantially equivalent to
activities provided by a State in which the entity is located
or by an agency of local government with jurisdiction over
the locality in which the entity is located, unless the re-
quirements of paragraph (2) are met.
‘‘(2)(A) An employer shall not displace an employee
or position, including partial displacement such as reduc-
tion in hours, wages, or employment benefits, as a result
of the use by the employer of a participant in a program
established under section 482.
‘‘(B) No work assignment under a program estab-
lished under section 482 shall result in any infringement
of the promotional opportunities of any employed individ-
ual.
‘‘(C)(i) A participant in a program established under
section 482(e) shall not perform any services or duties or
engage in activities that would otherwise be performed by
an employee as part of the assigned duties of the em-
ployee.
‘‘(ii) A participant in a program established under
section 482 shall not perform any services or duties or
engage in activities that—
‘‘(I) will supplant the hiring of employed work-
ers; or
‘‘(II) are services, duties or activities with re-
spect to which an individual has recall rights pursu-
ant to a collective bargaining agreement or applica-
ble personnel procedures.
‘‘(iii) A participant in a program established under
section 482 shall not perform services or duties that have
been performed by or were assigned to any—
‘‘(I) presently employed worker if the partici-
pant is in a program established under section
482(e);
‘‘(II) employee who recently resigned or was
discharged;
‘‘(III) employee who—
‘‘(aa) is the subject of a reduction in force;
or
‘‘(bb) has recall rights pursuant to a col-
lective bargaining agreement or applicable per-
sonnel procedures;
‘‘(IV) employee who is on leave (terminal, tem-
porary, vacation, emergency, or sick); or
period at the end and inserting the following: ‘‘, and
that the State shall offer to each such family the op-
tion of extending coverage under this subsection for
any of the first 2 succeeding 6-month periods, in the
same manner and under the same conditions as the
option of extending coverage under this subsection
for the first succeeding 6-month period.’’.
(2) 
CONFORMING
AMENDMENTS.—Section
1925(b) (42 U.S.C. 1396r–6(b)) is amended—
(A) in the heading, by striking ‘‘EXTEN-
SION’’ and inserting ‘‘EXTENSIONS’’;
(B) in the heading of paragraph (1), by
striking ‘‘REQUIREMENT’’ and inserting ‘‘IN
GENERAL’’;
(C) in paragraph (2)(B)(ii)—
(i) in the heading, by striking ‘‘PE-
RIOD’’ and inserting ‘‘PERIODS’’, and
(ii) by striking ‘‘in the period’’ and in-
serting ‘‘in each of the 6-month periods’’;
(D) in paragraph (3)(A), by striking ‘‘the
6-month period’’ and inserting ‘‘any 6-month
period’’;
(E) in paragraph (4)(A), by striking ‘‘the
extension period’’ and inserting ‘‘any extension
period’’; and
(F) in paragraph (5)(D)(i), by striking ‘‘is
a 3-month period’’ and all that follows and in-
serting the following: ‘‘is, with respect to a par-
ticular 6-month additional extension period pro-
vided under this subsection, a 3-month period
beginning with the first or fourth month of
such extension period.’’.
(b) IMPOSITION
OF PREMIUM PERMITTED ONLY
DURING ADDITIONAL EXTENSION PERIODS.—
(1) IN
GENERAL.—Section 1925(b)(5)(A) of
such Act (42 U.S.C. 1396r–6(b)(5)(A)) is amended
by striking ‘‘(D)(i)),’’ and inserting ‘‘(D)(i)) occur-
ring during the second or third additional extension
period provided under this subsection,’’.
(2) 
CONFORMING
AMENDMENT.—Section
1925(b)(1) of such Act (42 U.S.C. 1396r–6(b)(1)),
as amended by subsection (a)(1), is amended by in-
serting after ‘‘same conditions’’ the following: ‘‘(ex-
cept as provided in paragraph (5)(A))’’.
(c) EXTENSION
OF COVERAGE
FOR LOW-INCOME
CHILDREN.—Section 1925(b) of such Act (42 U.S.C.
1396r–6(b)) is amended by adding at the end the follow-
ing new paragraph:
‘‘(6) EXTENSION OF COVERAGE FOR LOW-IN-
COME CHILDREN.—
‘‘(A) IN GENERAL.—Notwithstanding any
other provision of this title, each State plan ap-
proved under this title shall provide that the
State shall offer (in the last month of the third
additional extension period provided under
paragraph (1)) to each eligible low-income child
who has received assistance pursuant to this
section during each of the 6-month periods de-
scribed in subsection (a) and paragraph (1) the
option of coverage under the State plan, in the
same manner and under the same conditions as
the option of extending coverage under para-
graph (1) for the second and third additional
extension periods provided under such para-
graph.
‘‘(B) ELIGIBLE
LOW-INCOME
CHILD
DE-
FINED.—In subparagraph (A), the term ‘eligi-
ble low-income child’ means an individual who
has not attained 18 years of age and whose
family income does not exceed 200 percent of
the official poverty line (as defined by the Of-
fice of Management and Budget, and revised
annually in accordance with section 673(2) of
the Omnibus Budget Reconciliation Act of
1981) applicable to a family of the size in-
volved.’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to calendar quarters beginning on
or after October 1, 1996, without regard to whether or
not final regulations to carry out such amendments have
been promulgated by such date.
SEC. 202. TEMPORARY EXCLUSION OF EARNED INCOME
FOR PURPOSES OF DETERMINING RENT PAID
FOR 
UNITS 
IN 
FEDERALLY 
ASSISTED
HOUSING.
(a) IN
GENERAL.—Notwithstanding any other
provision of law, the amount of rent payable by a qualified
family for a qualified dwelling unit may not be increased
because of the increased income due to the employment
referred to in subsection (b)(2)(A) for the period that be-
gins upon the commencement of such employment and
ends—
(A) 24 months thereafter, or
(B) upon the first date after the commencement
of such employment that the income of the family
exceeds 200 percent of the official poverty line (as
defined by the Office of Management and Budget
and revised periodically in accordance with section
673(2) of the Omnibus Budget Reconciliation Act of
1981) applicable to a family of the size involved,
whichever occurs first.
(b) DEFINITIONS.—For purposes of this section, the
following definitions shall apply:
(1) QUALIFIED
DWELLING
UNIT.—The term
‘‘qualified dwelling unit’’ means a dwelling unit—
(A) for which assistance is provided by the
Secretary of Housing and Urban Development
in the form of any grant, contract, loan, loan
guarantee, cooperative agreement, rental assist-
ance payment, interest subsidy, insurance, or
direct appropriation, or that is located in a
project for which such assistance is provided;
and
(B) for which the amount of rent paid by
the occupying family is limited, restricted, or
determined under law or regulation based on
the income of the family.
(2) QUALIFIED FAMILY.—The term ‘‘qualified
family’’ means a family—
(A) whose income increases as a result of
employment of a member of the family who was
previously unemployed; and
(B) who was receiving aid to families with
dependent children under a State plan approved
under part A of title IV of the Social Security
Act immediately before such employment.
SEC. 203. CONTINUATION OF FOOD STAMP BENEFITS.
(a) AMENDMENT.—Section 5(c) of the Food Stamp
Act of 1977 (7 U.S.C. 2014(c)) is amended by adding at
the end the following:
‘‘Notwithstanding any other provision of this subsection,
in the case of a household that receives benefits under part
A of title IV of the Social Security Act and whose income
increases because a member of such household obtains em-
ployment, the earned income from such employment shall
be excluded during a 2-year period for purposes of deter-
mining eligibility under such standards unless the aggre-
gate income of such household exceeds the poverty line by
more than 200 percent.’’.
(b) APPLICATION OF AMENDMENT.—The amendment
made by subsection (a) shall not apply with respect to cer-
tification periods beginning before the date of the enact-
ment of this Act.
TITLE III—IMPROVING CHILD
SUPPORT ENFORCEMENT
Subtitle A—Eligibility and Other
Matters Concerning Title IV–D
Program Clients
SEC. 301. STATE OBLIGATION TO PROVIDE PATERNITY ES-
TABLISHMENT 
AND 
CHILD 
SUPPORT 
EN-
FORCEMENT SERVICES.
(a) STATE LAW REQUIREMENTS.—Section 466(a)
(42 U.S.C. 666(a)) is amended by adding at the end the
following new paragraph:
‘‘(12) USE OF CENTRAL CASE REGISTRY AND
CENTRALIZED
COLLECTIONS
UNIT.—Procedures
under which—
‘‘(A) every child support order established
or modified in the State on or after October 1,
1998, is recorded in the central case registry
established in accordance with section 454A(e);
and
‘‘(B) child support payments are collected
through the centralized collections unit estab-
lished in accordance with section 454B—
‘‘(i) on and after October 1, 1998,
under each order subject to wage withhold-
ing under section 466(b); and
‘‘(ii) on and after October 1, 1999,
under each other order required to be re-
corded in such central case registry under
this paragraph or section 454A(e), except
as provided in subparagraph (C); and
‘‘(C)(i) parties subject to a child support
order described in subparagraph (B)(ii) may
opt out of the procedure for payment of support
through the centralized collections unit (but not
the procedure for inclusion in the central case
registry) by filing with State agency a written
agreement, signed by both parties, to an alter-
native payment procedure; and
‘‘(ii) an agreement described in clause (i)
becomes void whenever either party advises the
State agency of an intent to vacate the agree-
ment.’’.
(b) STATE PLAN REQUIREMENTS.—Section 454 (42
U.S.C. 654) is amended—
(1) by striking paragraph (4) and inserting the
following:
‘‘(4) provide that such State will undertake—
‘‘(A) to provide appropriate services under
this part to—
‘‘(i) each child with respect to whom
an assignment is effective under section
402(a)(26), 471(a)(17), or 1912 (except in
cases where the State agency determines,
in accordance with paragraph (25), that it
is against the best interests of the child to
do so); and
‘‘(ii) each child not described in clause
(i)—
‘‘(I) with respect to whom an in-
dividual applies for such services; and
‘‘(II) (on and after October 1,
1998) each child with respect to
whom a support order is recorded in
the central State case registry estab-
lished under section 454A, regardless
of whether application is made for
services under this part; and
‘‘(B) to enforce the support obligation es-
tablished with respect to the custodial parent of
a child described in subparagraph (A) unless
the parties to the order which establishes the
support obligation have opted, in accordance
with section 466(a)(12)(C), for an alternative
payment procedure.’’; and
(2) in paragraph (6)—
(A) by striking subparagraph (A) and in-
serting the following:
‘‘(A) services under the State plan shall be
made available to nonresidents on the same
terms as to residents;’’;
(B) in subparagraph (B)—
(i) by inserting ‘‘on individuals not re-
ceiving assistance under part A’’ after
‘‘such services shall be imposed’’; and
(ii) by inserting ‘‘but no fees or costs
shall be imposed on any absent or custo-
dial parent or other individual for inclusion
in the central State registry maintained
pursuant to section 454A(e)’’; and
(C) in each of subparagraphs (B), (C), and
(D)—
(i) by indenting such subparagraph
and aligning its left margin with the left
margin of subparagraph (A); and
(ii) by striking the final comma and
inserting a semicolon.
(c) CONFORMING AMENDMENTS.—
(1) 
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)’’.
(2) Section 454(23) (42 U.S.C. 654(23)) is
amended, effective October 1, 1998, by striking ‘‘in-
formation as to any application fees for such services
and’’.
(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 ‘‘or (6)’’.
SEC. 302. DISTRIBUTION OF PAYMENTS.
(a) DISTRIBUTIONS THROUGH STATE CHILD SUP-
PORT ENFORCEMENT AGENCY TO FORMER ASSISTANCE
RECIPIENTS.—Section 454(5) (42 U.S.C. 654(5)) is
amended—
(1) in subparagraph (A)—
(A) by inserting ‘‘except as otherwise spe-
cifically provided in section 464 or 466(a)(3),’’
after ‘‘is effective,’’; and
(B) by striking ‘‘except that’’ and all that
follows through the semicolon; and
and shall be paid to the family without affecting its
eligibility for assistance or decreasing any amount
otherwise payable as assistance to such family dur-
ing such month;’’;
(B) in paragraph (4), by striking ‘‘or (B)’’
and all that follows and inserting ‘‘; then (B)
from any remainder, amounts equal to arrear-
ages of such support obligations assigned, pur-
suant to part A, to any other State or States
shall be paid to such other State or States and
used to any such arrearages (with appropriate
reimbursement of the Federal Government to
the extent of its participation in the financing);
and then (C) any remainder shall be paid to the
family.’’.
(3) by inserting after subsection (a), as redesig-
nated, the following new subsection:
‘‘(b) ALTERNATIVE DISTRIBUTION IN CASE OF FAM-
ILY RECEIVING AFDC.—In the case of a State electing
the option under this subsection, amounts collected as de-
scribed in subsection (a) shall be distributed as follows:
‘‘(1) an amount equal to the amount that will
be disregarded pursuant to section 402(a)(8)(A)(vi)
shall be taken from each of—
‘‘(A) amounts received in a month which
represent payments for that month; and
‘‘(B) amounts received in a month which
represent payments for a prior month which
were made by the absent parent in the month
when due;
and shall be paid to the family without affecting its
eligibility for assistance or decreasing any amount
otherwise payable as assistance to such family dur-
ing such month;
‘‘(2) second, from any remainder, amounts
equal to the balance of support owed for the current
month shall be paid to the family;
‘‘(3) third, from any remainder, amounts equal
to arrearages of such support obligations assigned,
pursuant to part A, to the State making the collec-
tion shall be retained and used by such State to pay
any such arrearages (with appropriate reimburse-
ment of the Federal Government to the extent of its
participation in the financing);
‘‘(4) fourth, from any remainder, amounts
equal to arrearages of such support obligations as-
signed, pursuant to part A, to any other State or
States shall be paid to such other State or States
and used to pay any such arrearages (with appro-
priate reimbursement of the Federal Government to
the extent of its participation in the financing); and
‘‘(5) fifth, any remainder shall be paid to the
family.’’.
(c) DISTRIBUTION TO A FAMILY NOT RECEIVING
AFDC.—
(1) IN GENERAL.—Section 457(c) (42 U.S.C.
657(c)) is amended to read as follows:
‘‘(c) IN CASE OF FAMILY NOT RECEIVING AFDC.—
Amounts collected by a State agency under this part dur-
ing any month as support of a child who is not receiving
assistance under part A (or of a parent or caretaker rel-
ative of such a child) shall (subject to the remaining provi-
sions of this section) be distributed as follows:
‘‘(1) first, amounts equal to the total of such
support owed for such month shall be paid to the
family;
‘‘(2) second, from any remainder, amounts
equal to arrearages of such support obligations for
months during which such child did not receive as-
sistance under part A shall be paid to the family;
‘‘(3) third, from any remainder, amounts equal
to arrearages of such support obligations assigned to
the State making the collection pursuant to part A
shall be retained and used by such State to pay any
such arrearages (with appropriate reimbursement of
the Federal Government to the extent of its partici-
pation in the financing);
‘‘(4) fourth, from any remainder, amounts
equal to arrearages of such support obligations as-
signed to any other State pursuant to part A shall
be paid to such other State or States, and used to
pay such arrearages, in the order in which such ar-
rearages accrued (with appropriate reimbursement
of the Federal Government to the extent of its par-
ticipation in the financing).’’.
(2) EFFECTIVE DATE.—The amendment made
by paragraph (1) shall take effect on October 1,
1999.
(d) DISTRIBUTION TO A CHILD RECEIVING ASSIST-
ANCE UNDER TITLE IV–E.—Section 457(d) (42 U.S.C.
657(d)) is amended, in the matter preceding paragraph
(1), by striking ‘‘Notwithstanding the preceding provisions
of this section, amounts’’ and inserting the following:
‘‘(d) IN CASE OF A CHILD RECEIVING ASSISTANCE
UNDER TITLE IV–E.—Amounts’’.
(e) REGULATIONS.—The Secretary of Health and
Human Services shall promulgate regulations—
(1) under part D of title IV of the Social Secu-
rity Act, establishing a uniform nationwide standard
for allocation of child support collections from an ob-
ligor owing support to more than one family; and
(2) under part A of such title, establishing
standards applicable to States electing the alter-
native formula under section 457(b) of such Act for
distribution of collections on behalf of families re-
ceiving Aid to Families with Dependent Children,
designed to minimize irregular monthly payments to
such families.
(f) CLERICAL AMENDMENT.—Section 454 (42 U.S.C.
654) is amended—
(1) in paragraph (11), by striking ‘‘(11)’’ and
inserting ‘‘(11)(A)’’; and
(2) by redesignating paragraph (12) as sub-
paragraph (B) of paragraph (11).
(g) MANDATORY CHILD SUPPORT PASS-THROUGH.—
(1) IN GENERAL.—Section 402(a)(8)(A)(vi) (42
U.S.C. 602(a)(8)(A)(vi)) is amended—
(A) by striking ‘‘$50’’ each place such
term appears and inserting ‘‘$50, or, if greater,
$50 adjusted by the CPI (as prescribed in sec-
tion 406(i));’’; and
(B) by striking the semicolon at the end
and inserting ‘‘or, in lieu of each dollar amount
specified in this clause, such greater amount as
the State may choose (and provide for in its
State plan);’’.
(2) 
CPI 
ADJUSTMENT.—Section 
406 
(42
U.S.C. 606) is amended by adding at the end the
following:
‘‘(i) For purposes of this part, an amount is ‘adjusted
by the CPI’ for any month in a calendar year by multiply-
ing the amount involved by the ratio of—
‘‘(1) the Consumer Price Index (as prepared by
the Department of Labor) for the third quarter of
the preceding calendar year, to
‘‘(2) such Consumer Price Index for the third
quarter of calendar year 1996,
and rounding the product, if not a multiple of $10, to the
nearer multiple of $10.’’.
SEC. 303. DUE PROCESS RIGHTS.
(a) IN GENERAL.—Section 454 (42 U.S.C. 654), as
amended by section 102(f) of this Act, is amended by in-
serting after paragraph (11) the following new paragraph:
‘‘(12) provide for procedures to ensure that—
‘‘(A) individuals who are applying for or
receiving services under this part, or are parties
to cases in which services are being provided
under this part—
‘‘(i) receive notice of all proceedings in
which support obligations might be estab-
lished or modified; and
‘‘(ii) receive a copy of any order estab-
lishing or modifying a child support obliga-
tion, or (in the case of a petition for modi-
fication) a notice of determination that
there should be no change in the amount
of the child support award, within 14 days
after issuance of such order or determina-
tion;
‘‘(B) individuals applying for or receiving
services under this part have access to a fair
hearing that meets standards established by the
Secretary and ensures prompt consideration
and resolution of complaints (but the resort to
such procedure shall not stay the enforcement
of any support order); and
‘‘(C)(i) individuals adversely affected by
the establishment or modification of (or, in the
case of a petition for modification, the deter-
mination that there should be no change in) a
child support order shall be afforded not less
than 30 days after the receipt of the order or
determination to initiate proceedings to chal-
lenge such order or determination; and
‘‘(ii) the State may not provide to any
noncustodial parent of a child representation re-
lating to the establishment or modification of
an order for the payment of child support with
respect to that child, unless the State makes
provision for such representation outside the
State agency;’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall become effective on October 1, 1997.
SEC. 304. PRIVACY SAFEGUARDS.
(a) STATE PLAN REQUIREMENT.—Section 454 (42
U.S.C. 454) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(23);
(2) by striking the period at the end of para-
graph (24) and inserting ‘‘; and’’; and
(3) by adding after paragraph (24) the follow-
ing:
‘‘(25) will have in effect safeguards applicable
to all sensitive and confidential information handled
by the State agency 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 on the release of infor-
mation on the whereabouts of one party to an-
other party against whom a protective order
with respect to the former party has been en-
tered; and
‘‘(C) prohibitions on the release of infor-
mation on the whereabouts of one party to an-
other party if the State has reason to believe
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.
Subtitle B—Program
Administration and Funding
SEC. 311. FEDERAL MATCHING PAYMENTS.
(a) INCREASED BASE MATCHING RATE.—Section
455(a)(2) (42 U.S.C. 655(a)(2)) is amended to read as
follows:
‘‘(2) The applicable percent for a quarter for
purposes of paragraph (1)(A) is—
‘‘(A) for fiscal year 1997, 69 percent,
‘‘(B) for fiscal year 1998, 72 percent, and
‘‘(C) for fiscal year 1999 and succeeding
fiscal years, 75 percent.’’.
(b) MAINTENANCE OF EFFORT.—Section 455 (42
U.S.C. 655) is amended—
(1) in subsection (a)(1), in the matter preced-
ing subparagraph (A), by striking ‘‘From’’ and in-
serting ‘‘Subject to subsection (c), from’’; and
(2) by inserting after subsection (b) the follow-
ing new subsection:
‘‘(c) MAINTENANCE OF EFFORT.—Notwithstanding
the provisions of subsection (a), total expenditures for the
State program under this part for fiscal year 1997 and
each succeeding fiscal year, reduced by the percentage
specified for such fiscal year under subsection (a)(2) (A),
(B), or (C)(i), shall not be less than such total expendi-
tures for fiscal year 1996, reduced by 66 percent.’’.
SEC. 312. PERFORMANCE-BASED INCENTIVES AND PEN-
ALTIES.
(a) INCENTIVE ADJUSTMENTS TO FEDERAL MATCH-
ING RATE.—Section 458 (42 U.S.C. 658) is amended to
read as follows:
‘‘INCENTIVE ADJUSTMENTS TO MATCHING RATE
‘‘SEC. 458. (a) INCENTIVE ADJUSTMENT.—
‘‘(1) IN GENERAL.—In order to encourage and
reward State child support enforcement programs
which perform in an effective manner, the Federal
matching rate for payments to a State under section
455(a)(1)(A), for each fiscal year beginning on or
after October 1, 1998, shall be increased by a factor
reflecting the sum of the applicable incentive adjust-
ments (if any) determined in accordance with regu-
lations under this section with respect to Statewide
paternity establishment and to overall performance
in child support enforcement.
‘‘(2) STANDARDS.—
‘‘(A) IN
GENERAL.—The Secretary shall
specify in regulations—
‘‘(i) the levels of accomplishment, and
rates of improvement as alternatives to
such levels, which States must attain to
qualify for incentive adjustments under
this section; and
‘‘(ii) the amounts of incentive adjust-
ment that shall be awarded to States
achieving specified accomplishment or im-
provement levels, which amounts shall be
graduated, ranging up to—
‘‘(I) 5 percentage points, in con-
nection with Statewide paternity es-
tablishment; and
‘‘(II) 10 percentage points, in
connection with overall performance in
child support enforcement.
‘‘(B) LIMITATION.—In setting performance
standards pursuant to subparagraph (A)(i) and
adjustment amounts pursuant to subparagraph
(A)(ii), the Secretary shall ensure that the ag-
gregate number of percentage point increases as
incentive adjustments to all States do not ex-
ceed such aggregate increases as assumed by
the Secretary in estimates of the cost of this
section as of June 1995, unless the aggregate
performance of all States exceeds the projected
aggregate performance of all States in such cost
estimates.
‘‘(3) DETERMINATION OF INCENTIVE ADJUST-
MENT.—The Secretary shall determine the amount
(if any) of incentive adjustment due each State on
the basis of the data submitted by the State pursu-
ant to section 454(15)(B) concerning the levels of
accomplishment (and rates of improvement) with re-
spect to performance indicators specified by the Sec-
retary pursuant to this section.
‘‘(4) FISCAL YEAR SUBJECT TO INCENTIVE AD-
JUSTMENT.—The total percentage point increase de-
termined pursuant to this section with respect to a
State program in a fiscal year shall apply as an ad-
justment to the applicable percent under section
455(a)(2) for payments to such State for the suc-
ceeding fiscal year.
‘‘(5) 
RECYCLING
OF
INCENTIVE
ADJUST-
MENT.—A State shall expend in the State program
under this part all funds paid to the State by the
Federal Government as a result of an incentive ad-
justment under this section.
‘‘(b) MEANING OF TERMS.—For purposes of this sec-
tion—
‘‘(1) the term ‘Statewide paternity establish-
ment percentage’ means, with respect to a fiscal
year, the ratio (expressed as a percentage) of—
‘‘(A) the total number of out-of-wedlock
children in the State under one year of age for
whom paternity is established or acknowledged
during the fiscal year, to
‘‘(B) the total number of children born out
of wedlock in the State during such fiscal year;
and
‘‘(2) the term ‘overall performance in child sup-
port enforcement’ means a measure or measures of
the effectiveness of the State agency in a fiscal year
which takes into account factors including—
‘‘(A) the percentage of cases requiring a
child support order in which such an order was
established;
‘‘(B) the percentage of cases in which child
support is being paid;
‘‘(C) the ratio of child support collected to
child support due; and
‘‘(D) the cost-effectiveness of the State
program, as determined in accordance with
standards established by the Secretary in regu-
lations.’’.
(b) ADJUSTMENT OF PAYMENTS UNDER PART D OF
TITLE IV.—Section 455(a)(2) (42 U.S.C. 655(a)(2)), as
amended by section 111(a) of this Act, is amended—
(1) by striking the period at the end of sub-
paragraph (C)(ii) and inserting a comma; and
(2) by adding after and below subparagraph
(C), flush with the left margin of the subsection, the
following:
‘‘increased by the incentive adjustment factor (if any) de-
termined by the Secretary pursuant to section 458.’’.
(c) CONFORMING AMENDMENTS.—Section 454(22)
(42 U.S.C. 654(22)) is amended—
(1) by striking ‘‘incentive payments’’ the first
place it appears and inserting ‘‘incentive adjust-
ments’’; and
(2) by striking ‘‘any such incentive payments
made to the State for such period’’ and inserting
‘‘any increases in Federal payments to the State re-
sulting from such incentive adjustments’’.
(d) CALCULATION OF IV–D PATERNITY ESTABLISH-
MENT PERCENTAGE.—(1) Section 452(g)(1) (42 U.S.C.
652(g)(1)) is amended in the matter preceding subpara-
graph (A) by inserting ‘‘its overall performance in child
support enforcement is satisfactory (as defined in section
458(b) and regulations of the Secretary), and’’ after
‘‘1994,’’.
(2) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is
amended—
(A) in subparagraph (A), in the matter preced-
ing clause (i)—
(i) by striking ‘‘paternity establishment
percentage’’ and inserting ‘‘IV–D paternity es-
tablishment percentage’’; and
(ii) by striking ‘‘(or all States, as the case
may be)’’;
(B) in subparagraph (A)(i), by striking ‘‘during
the fiscal year’’;
(C) in subparagraph (A)(ii)(I), by striking ‘‘as
of the end of the fiscal year’’ and inserting ‘‘in the
fiscal year or, at the option of the State, as of the
end of such year’’;
(D) in subparagraph (A)(ii)(II), by striking ‘‘or
(E) as of the end of the fiscal year’’ and inserting
‘‘in the fiscal year or, at the option of the State, as
of the end of such year’’;
(E) in subparagraph (A)(iii)—
(i) by striking ‘‘during the fiscal year’’;
and
(ii) by striking ‘‘and’’ at the end; and
(F) in the matter following subparagraph (A)—
(i) by striking ‘‘who were born out of wed-
lock during the immediately preceding fiscal
year’’ and inserting ‘‘born out of wedlock’’;
(ii) by striking ‘‘such preceding fiscal
year’’ both places it appears and inserting ‘‘the
preceding fiscal year’’; and
(iii) by striking ‘‘or (E)’’ the second place
it appears.
(3) Section 452(g)(3) (42 U.S.C. 652(g)(3)) is
amended—
(A) by striking subparagraph (A) and redesig-
nating subparagraphs (B) and (C) as subparagraphs
(A) and (B), respectively;
(B) in subparagraph (A), as redesignated, by
striking ‘‘the percentage of children born out-of-wed-
lock in the State’’ and inserting ‘‘the percentage of
children in the State who are born out of wedlock
or for whom support has not been established’’; and
(C) in subparagraph (B), as redesignated—
(i) by inserting ‘‘and overall performance
in child support enforcement’’ after ‘‘paternity
establishment percentages’’; and
(ii) by inserting ‘‘and securing support’’
before the period.
(e) REDUCTION OF PAYMENTS UNDER PART D OF
TITLE IV.—
(1) NEW
REQUIREMENTS.—Section 455 (42
U.S.C. 655) is amended by inserting after sub-
section (b) the following:
‘‘(c)(1) If the Secretary finds, with respect to a State
program under this part in a fiscal year beginning on or
after October 1, 1997—
‘‘(A)(i) on the basis of data submitted by a
State pursuant to section 454(15)(B), that the State
program in such fiscal year failed to achieve the IV–
D paternity establishment percentage (as defined in
section 452(g)(2)(A)) or the appropriate level of
overall performance in child support enforcement (as
defined in section 458(b)(2)), or to meet other per-
formance measures that may be established by the
Secretary, or
‘‘(ii) on the basis of an audit or audits of such
State 
data 
conducted 
pursuant 
to 
section
452(a)(4)(C), that the State data submitted pursu-
ant to section 454(15)(B) is incomplete or unreli-
able; and
‘‘(B) that, with respect to the succeeding fiscal
year—
‘‘(i) the State failed to take sufficient cor-
rective action to achieve the appropriate per-
be determined to have submitted adequate data if the Sec-
retary determines that the extent of the incompleteness
or unreliability of the data is of a technical nature which
does not adversely affect the determination of the level of
the State’s performance.’’.
(2) CONFORMING AMENDMENTS.—
(A) Section 403 (42 U.S.C. 603) is amend-
ed by striking subsection (h).
(B) 
Section 
452(a)(4) 
(42 
U.S.C.
652(a)(4)) is amended by striking ‘‘403(h)’’
each place such term appears and inserting
‘‘455(c)’’.
(C) Subsections (d)(3)(A), (g)(1), and
(g)(3)(A) of section 452 (42 U.S.C. 652) are
each amended by striking ‘‘403(h)’’ and insert-
ing ‘‘455(c)’’.
(f) EFFECTIVE DATES.—
(1) INCENTIVE ADJUSTMENTS.—
(A) The amendments made by subsections
(a), (b), and (c) shall become effective October
1, 1997, except to the extent provided in sub-
paragraph (B).
(B) Section 458 of the Social Security Act,
as in effect prior to the enactment of this sec-
tion, shall be effective for purposes of incentive
payments to States for fiscal years prior to fis-
cal year 1999.
(2) PENALTY REDUCTIONS.—
(A) The amendments made by subsection
(d) shall become effective with respect to cal-
endar quarters beginning on and after the date
of enactment of this Act.
(B) The amendments made by subsection
(e) shall become effective with respect to cal-
endar quarters beginning on and after the date
one year after the date of enactment of this
Act.
SEC. 313. FEDERAL AND STATE REVIEWS AND AUDITS.
(a) STATE AGENCY ACTIVITIES.—Section 454 (42
U.S.C. 654) is amended—
(1) in paragraph (14), by striking ‘‘(14)’’ and
insert ‘‘(14)(A)’’;
(2) by redesignating paragraph (15) as sub-
paragraph (B) of paragraph (14); and
(3) by inserting after paragraph (14) the fol-
lowing new paragraph:
‘‘(15) provide for—
‘‘(A) a process for annual reviews of and
reports to the Secretary on the State program
under this part, which shall include such infor-
mation as may be necessary to measure State
compliance with Federal requirements for expe-
dited procedures and timely case processing,
using such standards and procedures as are re-
quired by the Secretary, under which the State
agency will determine the extent to which such
program is in conformity with applicable re-
quirements with respect to the operation of
State programs under this part (including the
status of complaints filed under the procedure
required under paragraph (12)(B)); and
‘‘(B) a process of extracting from the
State automated data processing system and
transmitting to the Secretary data and calcula-
tions concerning the levels of accomplishment
(and rates of improvement) with respect to ap-
plicable performance indicators (including IV–D
paternity establishment percentages and overall
performance in child support enforcement) to
the extent necessary for purposes of sections
452(g) and 458.’’.
(b) FEDERAL ACTIVITIES.—Section 452(a)(4) (42
U.S.C. 652(a)(4)) is amended to read as follows:
‘‘(4)(A) review data and calculations transmit-
ted 
by 
State 
agencies 
pursuant 
to 
section
454(15)(B) on State program accomplishments with
respect to performance indicators for purposes of
section 452(g) and 458, and determine the amount
(if any) of penalty reductions pursuant to section
455(c) to be applied to the State;
‘‘(B) review annual reports by State agencies
pursuant to section 454(15)(A) on State program
conformity with Federal requirements; evaluate any
elements of a State program in which significant de-
ficiencies are indicated by such report on the status
of complaints under the State procedure under sec-
tion 454(12)(B); and, as appropriate, provide to the
State agency comments, recommendations for addi-
tional or alternative corrective actions, and technical
assistance; and
‘‘(C) conduct audits, in accordance with the
government auditing standards of the United States
Comptroller General—
‘‘(i) at least once every 3 years (or more
frequently, in the case of a State which fails to
meet requirements of this part, or of regula-
tions implementing such requirements, concern-
ing performance standards and reliability of
program data) to assess the completeness, reli-
ability, and security of the data, and the accu-
racy of the reporting systems, used for the cal-
culations of performance indicators specified in
subsection (g) and section 458;
‘‘(ii) of the adequacy of financial manage-
ment of the State program, including assess-
ments of—
‘‘(I) whether Federal and other funds
made available to carry out the State pro-
gram under this part are being appro-
priately expended, and are properly and
fully accounted for; and
‘‘(II) whether collections and disburse-
ments of support payments and program
income are carried out correctly and are
properly and fully accounted for; and
‘‘(iii) for such other purposes as the Sec-
retary may find necessary;’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall be effective with respect to calendar
quarters beginning on or after the date one year after en-
actment of this section.
SEC. 314. REQUIRED REPORTING PROCEDURES.
(a) ESTABLISHMENT.—Section 452(a)(5) (42 U.S.C.
652(a)(5)) is amended by inserting ‘‘, and establish proce-
dures to be followed by States for collecting and reporting
information required to be provided under this part, and
establish uniform definitions (including those necessary to
enable the measurement of State compliance with the re-
quirements of this part relating to expedited processes and
timely case processing) to be applied in following such pro-
cedures’’ before the semicolon.
(b) STATE PLAN REQUIREMENT.—Section 454 (42
U.S.C. 654), as amended by section 104(a) 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:
‘‘(26) provide that the State shall use the defi-
nitions established under section 452(a)(5) in col-
lecting and reporting information as required under
this part.’’.
SEC. 315. AUTOMATED DATA PROCESSING REQUIREMENTS.
(a) REVISED REQUIREMENTS.—
(1) Section 454(16) (42 U.S.C. 654(16)) is
amended—
(A) by striking ‘‘, at the option of the
State,’’;
(B) by inserting ‘‘and operation by the
State agency’’ after ‘‘for the establishment’’;
(C) by inserting ‘‘meeting the requirements
of section 454A’’ after ‘‘information retrieval
system’’;
(D) by striking ‘‘in the State and localities
thereof, so as (A)’’ and inserting ‘‘so as’’;
(E) by striking ‘‘(i)’’; and
(F) by striking ‘‘(including’’ and all that
follows and inserting a semicolon.
(2) Part D of title IV (42 U.S.C. 651–669) is
amended by inserting after section 454 the following
new section:
‘‘AUTOMATED DATA PROCESSING
‘‘SEC. 454A. (a) IN GENERAL.—In order to meet the
requirements of this section, for purposes of the require-
ment of section 454(16), a State agency shall have in op-
eration a single statewide automated data processing and
information retrieval system which has the capability to
perform the tasks specified in this section, and perform
such tasks with the frequency and in the manner specified
in this part or in regulations or guidelines of the Sec-
retary.
‘‘(b) PROGRAM MANAGEMENT.—The automated sys-
tem required under this section shall perform such func-
tions as the Secretary may specify relating to management
of the program under this part, including—
‘‘(1) controlling and accounting for use of Fed-
eral, State, and local funds to carry out such pro-
gram; and
‘‘(2) maintaining the data necessary to meet
Federal reporting requirements on a timely basis.
‘‘(c) CALCULATION
OF
PERFORMANCE
INDICA-
TORS.—In order to enable the Secretary to determine the
incentive and penalty adjustments required by sections
452(g) and 458, the State agency shall—
‘‘(1) use the automated system—
‘‘(A) to maintain the requisite data on
State performance with report to paternity es-
tablishment and child support enforcement in
the State; and
‘‘(B) to calculate the IV–D paternity es-
tablishment percentage and overall performance
in child support enforcement for the State for
each fiscal year; and
‘‘(2) have in place systems controls to ensure
the completeness, and reliability of, and ready access
to, the data described in paragraph (1)(A), and the
accuracy of the calculations described in paragraph
(1)(B).
‘‘(d) INFORMATION INTEGRITY AND SECURITY.—The
State agency shall have in effect safeguards on the integ-
rity, accuracy, and completeness of, access to, and use of
data in the automated system required under this section,
which shall include the following (in addition to such other
safeguards as the Secretary specifies in regulations):
‘‘(1) POLICIES RESTRICTING ACCESS.—Written
policies concerning access to data by State agency
personnel, and sharing of data with other persons,
which—
‘‘(A) permit access to and use of data only
to the extent necessary to carry out program re-
sponsibilities;
‘‘(B) specify the data which may be used
for particular program purposes, and the per-
sonnel permitted access to such data; and
‘‘(C) ensure that data obtained or disclosed
for a limited program purpose is not used or
redisclosed for another, impermissible purpose.
‘‘(2) SYSTEMS
CONTROLS.—Systems controls
(such as passwords or blocking of fields) to ensure
strict adherence to the policies specified under para-
graph (1).
‘‘(3) MONTIORING OF ACCESS.—Routine mon-
itoring of access to and use of the automated sys-
tem, through methods such as audit trails and feed-
back mechanism, to guard against and promptly
identify unauthorized access or use.
‘‘(4) TRAINING AND INFORMATION.—The State
agency shall have in effect procedures to ensure that
all personnel (including State and local agency staff
and contractors) who may have access to or be re-
quired to use sensitive or confidential program data
are fully informed of applicable requirements and
penalties, and are adequately trained in security pro-
cedures.
‘‘(5) PENALTIES.—The State agency shall have
in effect administrative penalties (up to and includ-
ing dismissal from employment) for unauthorized ac-
cess to, or disclosure or use of, confidential data.’’.
(3) REGULATIONS.—Section 452 (42 U.S.C.
652) is amended by adding at the end the following:
‘‘(j) The Secretary shall prescribe final regulations
for implementation of the requirements of section 454A
not later than 2 years after the date of enactment of this
subsection.’’.
(4) 
IMPLEMENTATION
TIMETABLE.—Section
454(24) (42 U.S.C. 654(24)), as amended by sec-
tions 304(a)(2) and 314(b)(1) of this Act, is amend-
ed to read as follows:
‘‘(24) provide that the State will have in effect
an automated data processing and information re-
trieval system—
‘‘(A) by October 1, 1995, meeting all re-
quirements of this part which were enacted on
or before the date of enactment of the Family
Support Act of 1988; and
‘‘(B) by October 1, 1999, meeting all re-
quirements of this part enacted on or before the
date of enactment of this Act.
(but this provision shall not be construed to alter
earlier deadlines specified for elements of such sys-
tem), except that such deadline shall be extended by
1 day for each day (if any) by which the Secretary
fails to meet the deadline imposed by section
452(j);’’.
(b) SPECIAL FEDERAL MATCHING RATE FOR DE-
VELOPMENT COSTS OF AUTOMATED SYSTEMS.—Section
455(a) (42 U.S.C. 655(a)) is amended—
(1) in paragraph (1)(B)—
(A) by striking ‘‘90 percent’’ and inserting
‘‘the percent specified in paragraph (3)’’;
(B) by striking ‘‘so much of’’; and
(C) by striking ‘‘which the Secretary’’ and
all that follows and inserting ‘‘, and’’; and
(2) by adding at the end the following new
paragraph:
‘‘(3)(A) The Secretary shall pay to each State, for
each quarter in fiscal year 1996, 90 percent of so much
of State expenditures described in subparagraph (1)(B) as
the Secretary finds are for a system meeting the require-
ments specified in section 454(16), or meeting such re-
quirements without regard to clause (D) thereof.
‘‘(B)(i) The Secretary shall pay to each State, for
each quarter in fiscal years 1997 through 2001, the per-
centage specified in clause (ii) of so much of State expend-
itures described in subparagraph (1)(B) as the Secretary
finds are for a system meeting the requirements specified
in section 454(16) and 454A, subject to clause (iii).
‘‘(ii) The percentage specified in this clause, for pur-
poses of clause (i), is the higher of—
‘‘(I) 80 percent, or
‘‘(II) the percentage otherwise applicable to
Federal payments to the State under subparagraph
(A) (as adjusted pursuant to section 458).’’.
(c) CONFORMING AMENDMENT.—Section 123(c) of
the Family Support Act of 1988 (102 Stat. 2352; Public
Law 100–485) is repealed.
(d) ADDITIONAL PROVISIONS.—For additional provi-
sions of section 454A, as added by subsection (a) of this
section, see the amendments made by sections 21, 322(c),
and 333(d) of this Act.
SEC. 316. DIRECTOR OF CSE PROGRAM; STAFFING STUDY.
(a) REPORTING TO SECRETARY.—Section 452(a) (42
U.S.C. 652(a)) is amended in the matter preceding para-
graph (1) by striking ‘‘directly’’.
(b) STAFFING STUDIES.—
(1) SCOPE.—The Secretary of Health and
Human Services shall, directly or by contract, con-
duct studies of the staffing of each State child sup-
port enforcement program under part D of title IV
of the Social Security Act. Such studies shall include
a review of the staffing needs created by require-
ments for automated data processing, maintenance
of a central case registry and centralized collections
of child support, and of changes in these needs re-
sulting from changes in such requirements. Such
studies shall examine and report on effective staffing
practices used by the States and on recommended
staffing procedures.
(2) FREQUENCY OF STUDIES.—The Secretary
shall complete the first staffing study required under
paragraph (1) by October 1, 1997, and may conduct
additional studies subsequently at appropriate inter-
vals.
(3) REPORT
TO
THE
CONGRESS.—The Sec-
retary shall submit a report to the Congress stating
the findings and conclusions of each study conducted
under this subsection.
SEC. 317. FUNDING FOR SECRETARIAL ASSISTANCE TO
STATE PROGRAMS.
Section 452 (42 U.S.C. 652), as amended by section
115(a)(3) of this Act, is amended by adding at the end
the following new subsection:
‘‘(k) FUNDING FOR FEDERAL ACTIVITIES ASSISTING
STATE PROGRAMS.—(1) There shall be available to the
Secretary, from amounts appropriated for fiscal year 1996
and each succeeding fiscal year for payments to States
under this part, the amount specified in paragraph (2) for
the costs to the Secretary for—
‘‘(A) information dissemination and technical
assistance to States, training of State and Federal
staff, staffing studies, and related activities needed
to improve programs (including technical assistance
concerning State automated systems);
‘‘(B) research, demonstration, and special
projects of regional or national significance relating
to the operation of State programs under this part;
and
‘‘(C) operation of the Federal Parent Locator
Service under section 453, to the extent such costs
are not recovered through user fees.
‘‘(2) The amount specified in the paragraph for a fis-
cal year is the amount equal to a percentage of the reduc-
tion in Federal payments to States under part A on ac-
count of child support (including arrearages) collected in
the preceding fiscal year on behalf of children receiving
aid under such part A in such preceding fiscal year (as
determined on the basis of the most recent reliable data
available to the Secretary as of the end of the third cal-
endar quarter following the end of such preceding fiscal
year), equal to—
‘‘(A) 1 percent, for the activities specified in
subparagraphs (A) and (B) of paragraph (1); and
‘‘(B) 2 percent, for the activities specified in
subparagraph (C) of paragraph (1).’’.
SEC. 318. REPORTS AND DATA COLLECTION BY THE SEC-
RETARY.
(a) ANNUAL REPORT TO CONGRESS.—(1) Section
452(a)(10)(A) (42 U.S.C. 652(a)(10)(A)) is amended—
(A) by striking ‘‘this part;’’ and inserting ‘‘this
part, including—’’; and
(B) by adding at the end the following indented
clauses:
‘‘(i) the total amount of child support
payments collected as a result of services
furnished during such fiscal year to indi-
viduals receiving services under this part;
‘‘(ii) the cost to the States and to the
Federal Government of furnishing such
services to those individuals; and
‘‘(iii) the number of cases involving
families—
‘‘(I) who became ineligible for aid
under part A during a month in such
fiscal year; and
‘‘(II) with respect to whom a
child support payment was received in
the same month;’’.
(2) Section 452(a)(10)(C) (42 U.S.C. 652(a)(10)(C))
is amended—
(A) in the matter preceding clause (i)—
(i) by striking ‘‘with the data required
under each clause being separately stated for
cases’’ and inserting ‘‘separately stated for (1)
cases’’;
(ii) by striking ‘‘cases where the child was
formerly receiving’’ and inserting ‘‘or formerly
received’’;
(iii) 
by 
inserting 
‘‘or 
1912’’ 
after
‘‘471(a)(17)’’; and
(iv) by inserting ‘‘(2)’’ before ‘‘all other’’;
(B) in each of clauses (i) and (ii), by striking
‘‘, and the total amount of such obligations’’;
(C) in clause (iii), by striking ‘‘described in’’
and all that follows and inserting ‘‘in which support
was collected during the fiscal year;’’;
(D) by striking clause (iv); and
(E) by redesignating clause (v) as clause (vii),
and inserting after clause (iii) the following new
clauses:
‘‘(iv) the total amount of support col-
lected during such fiscal year and distrib-
uted as current support;
‘‘(v) the total amount of support col-
lected during such fiscal year and distrib-
uted as arrearages;
‘‘(vi) the total amount of support due
and unpaid for all fiscal years; and’’.
(3) Section 452(a)(10)(G) (42 U.S.C. 652(a)(10)(G))
is amended by striking ‘‘on the use of Federal courts
and’’.
(4) Section 452(a)(10) (42 U.S.C. 652(a)(10)) is
amended by striking all that follows subparagraph (I).
Subtitle C—Locate and Case
Tracking
SEC. 321. CENTRAL STATE AND CASE REGISTRY.
Section 454A, as added by section 315(a)(2) of this
Act, is amended by adding at the end the following:
‘‘(e) CENTRAL CASE REGISTRY.—
‘‘(1) IN GENERAL.—The automated system re-
quired under this section shall perform the func-
tions, in accordance with the provisions of this sub-
section, of a single central registry containing
records with respect to each case in which services
are being provided by the State agency (including,
on and after October 1, 1998, each order specified
in section 466(a)(12)), using such standardized data
elements (such as names, social security numbers or
other uniform identification numbers, dates of birth,
and case identification numbers), and containing
such other information (such as information on case
status) as the Secretary may require.
‘‘(2) PAYMENT RECORDS.—Each case record in
the central registry shall include a record of—
‘‘(A) the amount of monthly (or other peri-
odic) support owed under the support order,
and other amounts due or overdue (including
arrears, interest or late payment penalties, and
fees);
‘‘(B) the date on which or circumstances
under which the support obligation will termi-
nate under such order;
‘‘(C) all child support and related amounts
collected (including such amounts as fees, late
payment penalties, and interest on arrearages);
‘‘(D) the distribution of such amounts col-
lected; and
‘‘(E) the birth date of the child for whom
the child support order is entered.
‘‘(3) UPDATING AND MONITORING.—The State
agency shall promptly establish and maintain, and
regularly monitor, case records in the registry re-
quired by this subsection, 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 matches
with Federal, State, or local data sources;
‘‘(C) information on support collections
and distributions; and
‘‘(D) any other relevant information.
‘‘(f) DATA MATCHES AND OTHER DISCLOSURES OF
INFORMATION.—The automated system required under
this section shall have the capacity, and be used by the
State agency, to extract data at such times, and in such
standardized format or formats, as may be required by
the Secretary, and to share and match data with, and re-
ceive data from, other data bases and data matching serv-
ices, in order to obtain (or provide) information necessary
to enable the State agency (or Secretary or other State
or Federal agencies) to carry out responsibilities under
this part. Data matching activities of the State agency
shall include at least the following:
‘‘(1) DATA
BANK
OF
CHILD
SUPPORT
OR-
DERS.—Furnish to the Data Bank of Child Support
Orders established under section 453(h) (and update
as necessary, with information including notice of
expiration of orders) minimal information (to be
specified by the Secretary) on each child support
case in the central case registry.
‘‘(2) FEDERAL
PARENT
LOCATOR
SERVICE.—
Exchange data with the Federal Parent Locator
Service for the purposes specified in section 453.
‘‘(3) AFDC AND
MEDICAID
AGENCIES.—Ex-
change data with State agencies (of the State and
of other States) administering the programs under
part A and title XIX, as necessary for the perform-
ance of State agency responsibilities under this part
and under such programs.
‘‘(4) 
INTRA- 
AND
INTERSTATE
DATA
MATCHES.—Exchange data 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. 322. CENTRALIZED COLLECTION AND DISBURSEMENT
OF SUPPORT PAYMENTS.
(a) STATE PLAN REQUIREMENT.—Section 454 (42
U.S.C. 654), as amended by sections 304(a) and 314(b)
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 the State agency, on and
after October 1, 1998—
‘‘(A) will operate a centralized, automated
unit for the collection and disbursement of child
support under orders being enforced under this
part, in accordance with section 454B; and
‘‘(B) will have sufficient State staff (con-
sisting of State employees), and (at State op-
tion) contractors reporting directly to the State
agency to monitor and enforce support collec-
tions through such centralized unit, including
carrying out the automated data processing re-
sponsibilities specified in section 454A(g) and
to impose, as appropriate in particular cases,
the administrative enforcement remedies speci-
fied in section 466(c)(1).’’.
(b) ESTABLISHMENT OF CENTRALIZED COLLECTION
UNIT.—Part D of title IV (42 U.S.C. 651–669) is amend-
ed by adding after section 454A the following new section:
‘‘CENTRALIZED COLLECTION AND DISBURSEMENT OF
SUPPORT PAYMENTS
‘‘SEC. 454B. (a) IN GENERAL.—In order to meet the
requirement of section 454(27), the State agency must op-
erate a single centralized, automated unit for the collection
and disbursement of support payments, coordinated with
the automated data system required under section 454A,
in accordance with the provisions of this section, which
shall be—
‘‘(1) operated directly by the State agency (or
by two or more State agencies under a regional co-
operative agreement), or by a single contractor re-
sponsible directly to the State agency; and
‘‘(2) used for the collection and disbursement
(including interstate collection and disbursement) of
payments under support orders in all cases being en-
forced by the State pursuant to section 454(4).
‘‘(b) REQUIRED PROCEDURES.—The centralized col-
lections unit shall use automated procedures, electronic
processes, and computer-driven technology to the maxi-
mum extent feasible, efficient, and economical, for the col-
lection and disbursement of support payments, including
procedures—
‘‘(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 State 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 either parent, upon request,
timely information on the current status of support
payments.’’.
(c) USE OF AUTOMATED SYSTEM.—Section 454A, as
added by section 315(a)(2) of this Act and as amended