348
‘‘(1) controlling and accounting for use of Fed-
eral, State, and local funds in carrying out the pro-
gram; and
‘‘(2) maintaining the data necessary to meet
Federal reporting requirements under this part 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 respect 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).
349
‘‘(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 by this section,
which shall include the following (in addition to such other
safeguards as the Secretary may specify in regulations):
‘‘(1) POLICIES RESTRICTING ACCESS.—Written
policies concerning access to data by State agency
personnel, and sharing of data with other persons,
which—
‘‘(A) permit access to and use of data only
to the extent necessary to carry out the State
program under this part; and
‘‘(B) specify the data which may be used
for particular program purposes, and the per-
sonnel permitted access to such data.
‘‘(2) SYSTEMS
CONTROLS.—Systems controls
(such as passwords or blocking of fields) to ensure
strict adherence to the policies described in para-
graph (1).
‘‘(3) MONITORING OF ACCESS.—Routine mon-
itoring of access to and use of the automated sys-
tem, through methods such as audit trails and feed-
back mechanisms, to guard against and promptly
identify unauthorized access or use.
350
‘‘(4) TRAINING
AND
INFORMATION.—Proce-
dures to ensure that all personnel (including State
and local agency staff and contractors) who may
have access to or be required to use confidential pro-
gram data are informed of applicable requirements
and penalties (including those in section 6103 of the
Internal Revenue Code of 1986), and are adequately
trained in security procedures.
‘‘(5) PENALTIES.—Administrative penalties (up
to and including dismissal from employment) for un-
authorized access to, or disclosure or use of, con-
fidential data.’’.
(3) REGULATIONS.—The Secretary of Health
and Human Services shall prescribe final regulations
for implementation of section 454A of the Social Se-
curity Act not later than 2 years after the date of
the enactment of this Act.
(4) 
IMPLEMENTATION
TIMETABLE.—Section
454(24) (42 U.S.C. 654(24)), as amended by sec-
tions 703(a)(2) and 712(a)(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—
351
‘‘(A) by October 1, 1995, which meets all
requirements of this part which were enacted on
or before the date of enactment of the Family
Support Act of 1988; and
‘‘(B) by October 1, 1999, which meets all
requirements of this part enacted on or before
the date of the enactment of the Personal Re-
sponsibility Act of 1995, except that such dead-
line shall be extended by 1 day for each day (if
any) by which the Secretary fails to meet the
deadline imposed by section 745(a)(3) of the
Personal Responsibility Act of 1995.’’.
(b) SPECIAL FEDERAL MATCHING RATE FOR DE-
VELOPMENT COSTS OF AUTOMATED SYSTEMS.—
(1) IN GENERAL.—Section 455(a) (42 U.S.C.
655(a)) is amended—
(A) in paragraph (1)(B)—
(i) by striking ‘‘90 percent’’ and in-
serting ‘‘the percent specified in paragraph
(3)’’;
(ii) by striking ‘‘so much of’’; and
(iii) by striking ‘‘which the Secretary’’
and all that follows and inserting ‘‘, and’’;
and
(B) by adding at the end the following:
352
‘‘(3)(A) The Secretary shall pay to each State, for
each quarter in fiscal year 1996, 90 percent of so much
of the State expenditures described in paragraph (1)(B)
as the Secretary finds are for a system meeting the re-
quirements specified in section 454(16).
‘‘(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 the State
expenditures described in paragraph (1)(B) as the Sec-
retary finds are for a system meeting the requirements
of sections 454(16) and 454A.
‘‘(ii) The percentage specified in this clause is the
greater 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).’’.
(2) TEMPORARY
LIMITATION
ON
PAYMENTS
UNDER SPECIAL FEDERAL MATCHING RATE.—
(A) 
IN
GENERAL.—The 
Secretary 
of
Health and Human Services may not pay more
than $260,000,000 in the aggregate under sec-
tion 455(a)(3) of the Social Security Act for fis-
cal years 1996, 1997, 1998, 1999, and 2000.
353
(B) ALLOCATION OF LIMITATION AMONG
STATES.—The total amount payable to a State
under section 455(a)(3) of such Act for fiscal
years 1996, 1997, 1998, 1999, and 2000 shall
not exceed the limitation determined for the
State by the Secretary of Health and Human
Services in regulations.
(C) ALLOCATION FORMULA.—The regula-
tions referred to in subparagraph (B) shall pre-
scribe a formula for allocating the amount spec-
ified in subparagraph (A) among States with
plans approved under part D of title IV of the
Social Security Act, which shall take into ac-
count—
(i) the relative size of State caseloads
under such part; and
(ii) the level of automation needed to
meet the automated data processing re-
quirements of such part.
(c) CONFORMING AMENDMENT.—Section 123(c) of
the Family Support Act of 1988 (102 Stat. 2352; Public
Law 100–485) is repealed.
SEC. 746. TECHNICAL ASSISTANCE.
(a) FOR TRAINING OF FEDERAL AND STATE STAFF,
RESEARCH AND DEMONSTRATION PROGRAMS, AND SPE-
354
CIAL PROJECTS OF REGIONAL OR NATIONAL SIGNIFI-
CANCE.—Section 452 (42 U.S.C. 652) is amended by add-
ing at the end the following:
‘‘(j) Out of any money in the Treasury of the United
States not otherwise appropriated, there is hereby appro-
priated to the Secretary for each fiscal year an amount
equal to 1 percent of the total amount paid to the Federal
Government pursuant to section 457(a) during the imme-
diately preceding fiscal year (as determined on the basis
of the most recent reliable data available to the Secretary
as of the end of the 3rd calendar quarter following the
end of such preceding fiscal year), to cover costs incurred
by the Secretary for—
‘‘(1) information dissemination and technical
assistance to States, training of State and Federal
staff, staffing studies, and related activities needed
to improve programs under this part (including tech-
nical assistance concerning State automated systems
required by this part); and
‘‘(2) research, demonstration, and special
projects of regional or national significance relating
to the operation of State programs under this
part.’’.
(b) OPERATION
OF FEDERAL PARENT LOCATOR
SERVICE.—Section 453 (42 U.S.C. 653), as amended by
355
section 716(e) of this Act, is amended by adding at the
end the following:
‘‘(n) Out of any money in the Treasury of the United
States not otherwise appropriated, there is hereby appro-
priated to the Secretary for each fiscal year an amount
equal to 2 percent of the total amount paid to the Federal
Government pursuant to section 457(a) during the imme-
diately preceding fiscal year (as determined on the basis
of the most recent reliable data available to the Secretary
as of the end of the 3rd calendar quarter following the
end of such preceding fiscal year), to cover costs incurred
by the Secretary for operation of the Federal Parent Loca-
tor Service under this section, to the extent such costs are
not recovered through user fees.’’.
SEC. 747. 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:
‘‘(i) the total amount of child support
payments collected as a result of services
356
furnished during the fiscal year to individ-
uals receiving services under this part;
‘‘(ii) the cost to the States and to the
Federal Government of so furnishing the
services; and
‘‘(iii) the number of cases involving
families—
‘‘(I) who became ineligible for as-
sistance under State programs funded
under part A during a month in the
fiscal year; and
‘‘(II) with respect to whom a
child support payment was received in
the month;’’.
(2) 
Section 
452(a)(10)(C) 
(42 
U.S.C.
652(a)(10)(C)) is amended—
(A) in the matter preceding clause (i)—
(i) by striking ‘‘with the data required
under each clause being separately stated
for cases’’ and inserting ‘‘separately stated
for (1) cases’’;
(ii) by striking ‘‘cases where the child
was formerly receiving’’ and inserting ‘‘or
formerly received’’;
357
(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 strik-
ing ‘‘, and the total amount of such obliga-
tions’’;
(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);
(E) by redesignating clause (v) as clause
(vii), and inserting after clause (iii) the follow-
ing:
‘‘(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’’.
358
(4) Section 452(a)(10) (42 U.S.C. 652(a)(10))
is amended by striking all that follows subparagraph
(I).
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall be effective with respect to fiscal year
1996 and succeeding fiscal years.
Subtitle F—Establishment and
Modification of Support Orders
SEC. 751. SIMPLIFIED PROCESS FOR REVIEW AND ADJUST-
MENT OF CHILD SUPPORT ORDERS.
Section 466(a)(10) (42 U.S.C. 666(a)(10)) is amend-
ed to read as follows:
‘‘(10) REVIEW AND ADJUSTMENT OF SUPPORT
ORDERS.—Procedures under which the State shall
review and adjust each support order being enforced
under this part. Such procedures shall provide the
following:
‘‘(A) The State shall review and, as appro-
priate, adjust the support order every 3 years,
taking into account the best interests of the
child involved.
‘‘(B)(i) The State may elect to review and,
if appropriate, adjust an order pursuant to sub-
paragraph (A) by—
359
‘‘(I) reviewing and, if appropriate, ad-
justing the order in accordance with the
guidelines established pursuant to section
467(a) if the amount of the child support
award under the order differs from the
amount that would be awarded in accord-
ance with the guidelines; or
‘‘(II) applying a cost-of-living adjust-
ment to the order in accordance with a for-
mula developed by the State and permit ei-
ther party to contest the adjustment, with-
in 30 days after the date of the notice of
the adjustment, by making a request for
review and, if appropriate, adjustment of
the order in accordance with the child sup-
port guidelines established pursuant to sec-
tion 467(a).
‘‘(ii) Any adjustment under clause (i) shall
be made without a requirement for proof or
showing of a change in circumstances.
‘‘(C) The State may use automated meth-
ods (including automated comparisons with
wage or State income tax data) to identify or-
ders eligible for review, conduct the review,
identify orders eligible for adjustment, apply
360
the appropriate adjustment to the orders eligi-
ble for adjustment under the threshold estab-
lished by the State.
‘‘(D) The State shall, at the request of ei-
ther parent subject to such an order or of any
State child support enforcement agency, review
and, if appropriate, adjust the order in accord-
ance with the guidelines established pursuant to
section 467(a) based upon a substantial change
in the circumstances of either parent.
‘‘(E) The State shall provide notice to the
parents subject to such an order informing
them of their right to request the State to re-
view and, if appropriate, adjust the order pur-
suant to subparagraph (D). The notice may be
included in the order.’’.
SEC. 752. FURNISHING CONSUMER REPORTS FOR CERTAIN
PURPOSES RELATING TO CHILD SUPPORT.
Section 604 of the Fair Credit Reporting Act (15
U.S.C. 1681b) is amended by adding at the end the follow-
ing:
‘‘(4) In response to a request by the head of a
State or local child support enforcement agency (or
a State or local government official authorized by
the head of such an agency), if the person making
361
the request certifies to the consumer reporting agen-
cy that—
‘‘(A) the consumer report is needed for the
purpose of establishing an individual’s capacity
to make child support payments or determining
the appropriate level of such payments;
‘‘(B) the person has provided at least 10
days prior notice to the consumer whose report
is requested, by certified or registered mail to
the last known address of the consumer, that
the report will be requested, and
‘‘(C) the consumer report will be kept con-
fidential, will be used solely for a purpose de-
scribed in subparagraph (A), and will not be
used in connection with any other civil, admin-
istrative, or criminal proceeding, or for any
other purpose.
‘‘(5) To an agency administering a State plan
under section 454 of the Social Security Act (42
U.S.C. 654) for use to set an initial or modified
child support award.’’.
362
Subtitle G—Enforcement of
Support Orders
SEC. 761. FEDERAL INCOME TAX REFUND OFFSET.
(a) CHANGED ORDER OF REFUND DISTRIBUTION
UNDER INTERNAL REVENUE CODE.—
(1) Subsection (c) of section 6402 of the Inter-
nal Revenue Code of 1986 is amended by striking
the third sentence and inserting the following new
sentences: ‘‘A reduction under this subsection shall
be after any other reduction allowed by subsection
(d) with respect to the Department of Health and
Human Services and the Department of Education
with respect to a student loan and before any other
reduction allowed by law and before such overpay-
ment is credited to the future liability for tax of
such person pursuant to subsection (b). A reduction
under this subsection shall be assigned to the State
with respect to past-due support owed to individuals
for periods such individuals were receiving assistance
under part A or B of title IV of the Social Security
Act only after satisfying all other past-due sup-
port.’’.
(2) Paragraph (2) of section 6402(d) of such
Code is amended—
363
(A) by striking ‘‘Any overpayment’’ and in-
serting ‘‘Except in the case of past-due legally
enforceable debts owed to the Department of
Health and Human Services or to the Depart-
ment of Education with respect to a student
loan, any overpayment’’; and
(B) by striking ‘‘with respect to past-due
support collected pursuant to an assignment
under section 402(a)(26) of the Social Security
Act’’.
(b) ELIMINATION OF DISPARITIES IN TREATMENT
OF ASSIGNED AND NON-ASSIGNED ARREARAGES.—
(1) Section 464(a) (42 U.S.C. 664(a)) is
amended—
(A) by striking ‘‘(a)’’ and inserting ‘‘(a)
OFFSET AUTHORIZED.—’’;
(B) in paragraph (1)—
(i) in the 1st sentence, by striking
‘‘which has been assigned to such State
pursuant to section 402(a)(26) or section
471(a)(17)’’; and
(ii) in the 2nd sentence, by striking
‘‘in accordance with section 457(b)(4) or
(d)(3)’’ and inserting ‘‘as provided in para-
graph (2)’’;
364
(C) by striking paragraph (2) and insert-
ing the following:
‘‘(2) The State agency shall distribute amounts paid
by the Secretary of the Treasury pursuant to paragraph
(1)—
‘‘(A) in accordance with section 457(a), in the
case of past-due support assigned to a State pursu-
ant to requirements imposed pursuant to section
405(a)(8); and
‘‘(B) to or on behalf of the child to whom the
support was owed, in the case of past-due support
not so assigned.’’; and
(D) in paragraph (3)—
(i) by striking ‘‘or (2)’’ each place
such term appears; and
(ii) in subparagraph (B), by striking
‘‘under paragraph (2)’’ and inserting ‘‘on
account of past-due support described in
paragraph (2)(B)’’.
(2) Section 464(b) (42 U.S.C. 664(b)) is
amended—
(A) by striking ‘‘(b)(1)’’ and inserting the
following:
‘‘(b) REGULATIONS.—’’; and
(B) by striking paragraph (2).
365
(3) Section 464(c) (42 U.S.C. 664(c)) is
amended—
(A) by striking ‘‘(c)(1) Except as provided
in paragraph (2), as’’ and inserting the follow-
ing:
‘‘(c) DEFINITION.—As’’; and
(B) by striking paragraphs (2) and (3).
SEC. 762. AUTHORITY TO COLLECT SUPPORT FROM FED-
ERAL EMPLOYEES.
(a) CONSOLIDATION
AND STREAMLINING
OF AU-
THORITIES.—Section 459 (42 U.S.C. 659) is amended to
read as follows:
‘‘SEC. 459. CONSENT BY THE UNITED STATES TO INCOME
WITHHOLDING, GARNISHMENT, AND SIMILAR
PROCEEDINGS FOR ENFORCEMENT OF CHILD
SUPPORT AND ALIMONY OBLIGATIONS.
‘‘(a) CONSENT TO SUPPORT ENFORCEMENT.—Not-
withstanding any other provision of law (including section
207 of this Act and section 5301 of title 38, United States
Code), effective January 1, 1975, moneys (the entitlement
to which is based upon remuneration for employment) due
from, or payable by, the United States or the District of
Columbia (including any agency, subdivision, or instru-
mentality thereof) to any individual, including members
of the Armed Forces of the United States, shall be subject,
366
in like manner and to the same extent as if the United
States or the District of Columbia were a private person,
to withholding in accordance with State law enacted pur-
suant to subsections (a)(1) and (b) of section 466 and reg-
ulations of the Secretary under such subsections, and to
any other legal process brought, by a State agency admin-
istering a program under a State plan approved under this
part or by an individual obligee, to enforce the legal obliga-
tion of the individual to provide child support or alimony.
‘‘(b) CONSENT TO REQUIREMENTS APPLICABLE TO
PRIVATE PERSON.—With respect to notice to withhold in-
come pursuant to subsection (a)(1) or (b) of section 466,
or any other order or process to enforce support obliga-
tions against an individual (if the order or process con-
tains or is accompanied by sufficient data to permit
prompt identification of the individual and the moneys in-
volved), each governmental entity specified in subsection
(a) shall be subject to the same requirements as would
apply if the entity were a private person, except as other-
wise provided in this section.
‘‘(c) DESIGNATION OF AGENT; RESPONSE TO NOTICE
OR PROCESS—
‘‘(1) DESIGNATION OF AGENT.—The head of
each agency subject to this section shall—
367
‘‘(A) designate an agent or agents to re-
ceive orders and accept service of process in
matters relating to child support or alimony;
and
‘‘(B) annually publish in the Federal Reg-
ister the designation of the agent or agents,
identified by title or position, mailing address,
and telephone number.
‘‘(2) RESPONSE TO NOTICE OR PROCESS.—If an
agent designated pursuant to paragraph (1) of this
subsection receives notice pursuant to State proce-
dures in effect pursuant to subsection (a)(1) or (b)
of section 466, or is effectively served with any
order, process, or interrogatory, with respect to an
individual’s child support or alimony payment obli-
gations, the agent shall—
‘‘(A) as soon as possible (but not later
than 15 days) thereafter, send written notice of
the notice or service (together with a copy of
the notice or service) to the individual at the
duty station or last-known home address of the
individual;
‘‘(B) within 30 days (or such longer period
as may be prescribed by applicable State law)
after receipt of a notice pursuant to such State
368
procedures, comply with all applicable provi-
sions of section 466; and
‘‘(C) within 30 days (or such longer period
as may be prescribed by applicable State law)
after effective service of any other such order,
process, or interrogatory, respond to the order,
process, or interrogatory.
‘‘(d) PRIORITY OF CLAIMS.—If a governmental entity
specified in subsection (a) receives notice or is served with
process, as provided in this section, concerning amounts
owed by an individual to more than 1 person—
‘‘(1) support collection under section 466(b)
must be given priority over any other process, as
provided in section 466(b)(7);
‘‘(2) allocation of moneys due or payable to an
individual among claimants under section 466(b)
shall be governed by section 466(b) and the regula-
tions prescribed under such section; and
‘‘(3) such moneys as remain after compliance
with subparagraphs (A) and (B) shall be available to
satisfy any other such processes on a first-come,
first-served basis, with any such process being satis-
fied out of such moneys as remain after the satisfac-
tion of all such processes which have been previously
served.
369
‘‘(e) NO REQUIREMENT TO VARY PAY CYCLES.—A
governmental entity that is affected by legal process
served for the enforcement of an individual’s child support
or alimony payment obligations shall not be required to
vary its normal pay and disbursement cycle in order to
comply with the legal process.
‘‘(f) RELIEF FROM LIABILITY.—
‘‘(1) Neither the United States, nor the govern-
ment of the District of Columbia, nor any disbursing
officer shall be liable with respect to any payment
made from moneys due or payable from the United
States to any individual pursuant to legal process
regular on its face, if the payment is made in ac-
cordance with this section and the regulations issued
to carry out this section.
‘‘(2) No Federal employee whose duties include
taking actions necessary to comply with the require-
ments of subsection (a) with regard to any individ-
ual shall be subject under any law to any discipli-
nary action or civil or criminal liability or penalty
for, or on account of, any disclosure of information
made by the employee in connection with the carry-
ing out of such actions.
‘‘(g) REGULATIONS.—Authority to promulgate regu-
lations for the implementation of this section shall, insofar
370
as this section applies to moneys due from (or payable
by)—
‘‘(1) the United States (other than the legisla-
tive or judicial branches of the Federal Government)
or the government of the District of Columbia, be
vested in the President (or the designee of the Presi-
dent);
‘‘(2) the legislative branch of the Federal Gov-
ernment, be vested jointly in the President pro tem-
pore of the Senate and the Speaker of the House of
Representatives (or their designees), and
‘‘(3) the judicial branch of the Federal Govern-
ment, be vested in the Chief Justice of the United
States (or the designee of the Chief Justice).
‘‘(h) MONEYS SUBJECT TO PROCESS.—
‘‘(1) IN GENERAL.—Subject to paragraph (2),
moneys paid or payable to an individual which are
considered to be based upon remuneration for em-
ployment, for purposes of this section—
‘‘(A) consist of—
‘‘(i) compensation paid or payable for
personal services of the individual, whether
the compensation is denominated as wages,
salary, commission, bonus, pay, allowances,
371
or otherwise (including severance pay, sick
pay, and incentive pay);
‘‘(ii) periodic benefits (including a
periodic benefit as defined in section
228(h)(3)) or other payments—
‘‘(I) under the insurance system
established by title II;
‘‘(II) under any other system or
fund established by the United States
which provides for the payment of
pensions, retirement or retired pay,
annuities, dependents’ or survivors’
benefits, or similar amounts payable
on account of personal services per-
formed by the individual or any other
individual;
‘‘(III) as compensation for death
under any Federal program;
‘‘(IV) under any Federal pro-
gram established to provide ‘black
lung’ benefits; or
‘‘(V) by the Secretary of Veter-
ans Affairs as pension, or as com-
pensation for a service-connected dis-
ability or death (except any compensa-
372
tion paid by the Secretary to a mem-
ber of the Armed Forces who is in re-
ceipt of retired or retainer pay if the
member has waived a portion of the
retired pay of the member in order to
receive the compensation); and
‘‘(iii) worker’s compensation benefits
paid under Federal or State law but
‘‘(B) do not include any payment—
‘‘(i) by way of reimbursement or oth-
erwise, to defray expenses incurred by the
individual in carrying out duties associated
with the employment of the individual; or
‘‘(ii) as allowances for members of the
uniformed services payable pursuant to
chapter 7 of title 37, United States Code,
as prescribed by the Secretaries concerned
(defined by section 101(5) of such title) as
necessary for the efficient performance of
duty.
‘‘(2) CERTAIN AMOUNTS EXCLUDED.—In deter-
mining the amount of any moneys due from, or pay-
able by, the United States to any individual, there
shall be excluded amounts which—
373
‘‘(A) are owed by the individual to the
United States;
‘‘(B) are required by law to be, and are,
deducted from the remuneration or other pay-
ment involved, including Federal employment
taxes, and fines and forfeitures ordered by
court-martial;
‘‘(C) are properly withheld for Federal,
State, or local income tax purposes, if the with-
holding of the amounts is authorized or re-
quired by law and if amounts withheld are not
greater than would be the case if the individual
claimed all dependents to which he was entitled
(the withholding of additional amounts pursu-
ant to section 3402(i) of the Internal Revenue
Code of 1986 may be permitted only when the
individual presents evidence of a tax obligation
which supports the additional withholding);
‘‘(D) are deducted as health insurance pre-
miums;
‘‘(E) are deducted as normal retirement
contributions (not including amounts deducted
for supplementary coverage); or
‘‘(F) are deducted as normal life insurance
premiums from salary or other remuneration
374
for employment (not including amounts de-
ducted for supplementary coverage).
‘‘(i) DEFINITIONS.—As used in this section:
‘‘(1) UNITED
STATES.—The term ‘United
States’ includes any department, agency, or instru-
mentality of the legislative, judicial, or executive
branch of the Federal Government, the United
States Postal Service, the Postal Rate Commission,
any Federal corporation created by an Act of Con-
gress that is wholly owned by the Federal Govern-
ment, and the governments of the territories and
possessions of the United States.
‘‘(2) CHILD SUPPORT.—The term ‘child sup-
port’, when used in reference to the legal obligations
of an individual to provide such support, means peri-
odic payments of funds for the support and mainte-
nance of a child or children with respect to which
the individual has such an obligation, and (subject
to and in accordance with State law) includes pay-
ments to provide for health care, education, recre-
ation, clothing, or to meet other specific needs of
such a child or children, and includes attorney’s
fees, interest, and court costs, when and to the ex-
tent that the same are expressly made recoverable as
such pursuant to a decree, order, or judgment issued
375
in accordance with applicable State law by a court
of competent jurisdiction.
‘‘(3) ALIMONY.—The term ‘alimony’, when used
in reference to the legal obligations of an individual
to provide the same, means periodic payments of
funds for the support and maintenance of the spouse
(or former spouse) of the individual, and (subject to
and in accordance with State law) includes separate
maintenance, alimony pendente lite, maintenance,
and spousal support, and includes attorney’s fees,
interest, and court costs when and to the extent that
the same are expressly made recoverable as such
pursuant to a decree, order, or judgment issued in
accordance with applicable State law by a court of
competent jurisdiction. Such term does not include
any payment or transfer of property or its value by
an individual to the spouse or a former spouse of the
individual in compliance with any community prop-
erty settlement, equitable distribution of property, or
other division of property between spouses or former
spouses.
‘‘(4) PRIVATE PERSON.—The term ‘private per-
son’ means a person who does not have sovereign or
other special immunity or privilege which causes the
person not to be subject to legal process.
376
‘‘(5) LEGAL PROCESS.—The term ‘legal proc-
ess’ means any writ, order, summons, or other simi-
lar process in the nature of garnishment—
‘‘(A) which is issued by—
‘‘(i) a court of competent jurisdiction
in any State, territory, or possession of the
United States;
‘‘(ii) a court of competent jurisdiction
in any foreign country with which the
United States has entered into an agree-
ment which requires the United States to
honor the process; or
‘‘(iii) an authorized official pursuant
to an order of such a court of competent
jurisdiction or pursuant to State or local
law; and
‘‘(B) which is directed to, and the purpose
of which is to compel, a governmental entity
which holds moneys which are otherwise pay-
able to an individual to make a payment from
the moneys to another party in order to satisfy
a legal obligation of the individual to provide
child support or make alimony payments.’’.
(b) CONFORMING AMENDMENTS.—
377
(1) TO PART D OF TITLE IV.—Sections 461 and
462 (42 U.S.C. 661 and 662) are repealed.
(2) TO TITLE 5, UNITED STATES CODE.—Sec-
tion 5520a of title 5, United States Code, is amend-
ed, in subsections (h)(2) and (i), by striking ‘‘sec-
tions 459, 461, and 462 of the Social Security Act
(42 U.S.C. 659, 661, and 662)’’ and inserting ‘‘sec-
tion 459 of the Social Security Act (42 U.S.C.
659)’’.
(c) MILITARY RETIRED AND RETAINER PAY.—
(1) 
DEFINITION
OF
COURT.—Section
1408(a)(1) of title 10, United States Code, is
amended—
(A) by striking ‘‘and’’ at the end of sub-
paragraph (B);
(B) by striking the period at the end of
subparagraph (C) and inserting ‘‘; and’’; and
(C) by adding after subparagraph (C) the
following:
‘‘(D) any administrative or judicial tribu-
nal of a State competent to enter orders for
support or maintenance (including a State
agency administering a program under a State
plan approved under part D of title IV of the
Social Security Act), and, for purposes of this
378
subparagraph, the term ‘State’ includes the
District of Columbia, the Commonwealth of
Puerto Rico, the Virgin Islands, Guam, and
American Samoa.’’.
(2) DEFINITION
OF
COURT
ORDER.—Section
1408(a)(2) of such title is amended by inserting ‘‘or
a court order for the payment of child support not
included in or accompanied by such a decree or set-
tlement,’’ before ‘‘which—’’.
(3) PUBLIC PAYEE.—Section 1408(d) of such
title is amended—
(A) in the heading, by inserting ‘‘(OR FOR
BENEFIT OF)’’ before ‘‘SPOUSE OR’’; and
(B) in paragraph (1), in the first sentence,
by inserting ‘‘(or for the benefit of such spouse
or former spouse to a State disbursement unit
established pursuant to section 454B of the So-
cial Security Act or other public payee des-
ignated by a State, in accordance with part D
of title IV of the Social Security Act, as di-
rected by court order, or as otherwise directed
in accordance with such part D)’’ before ‘‘in an
amount sufficient’’.
379
(4) RELATIONSHIP TO PART D OF TITLE IV.—
Section 1408 of such title is amended by adding at
the end the following:
‘‘(j) RELATIONSHIP TO OTHER LAWS.—In any case
involving an order providing for payment of child support
(as defined in section 459(i)(2) of the Social Security Act)
by a member who has never been married to the other
parent of the child, the provisions of this section shall not
apply, and the case shall be subject to the provisions of
section 459 of such Act.’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall become effective 6 months after the date
of the enactment of this Act.
SEC. 763. ENFORCEMENT OF CHILD SUPPORT OBLIGA-
TIONS OF MEMBERS OF THE ARMED FORCES.
(a) AVAILABILITY OF LOCATOR INFORMATION.—
(1) MAINTENANCE
OF
ADDRESS
INFORMA-
TION.—The Secretary of Defense shall establish a
centralized personnel locator service that includes
the address of each member of the Armed Forces
under the jurisdiction of the Secretary. Upon re-
quest of the Secretary of Transportation, addresses
for members of the Coast Guard shall be included in
the centralized personnel locator service.
(2) TYPE OF ADDRESS.—
380
(A) RESIDENTIAL
ADDRESS.—Except as
provided in subparagraph (B), the address for
a member of the Armed Forces shown in the lo-
cator service shall be the residential address of
that member.
(B) DUTY ADDRESS.—The address for a
member of the Armed Forces shown in the loca-
tor service shall be the duty address of that
member in the case of a member—
(i) who is permanently assigned over-
seas, to a vessel, or to a routinely
deployable unit; or
(ii) with respect to whom the Sec-
retary concerned makes a determination
that the member’s residential address
should not be disclosed due to national se-
curity or safety concerns.
(3) UPDATING
OF
LOCATOR
INFORMATION.—
Within 30 days after a member listed in the locator
service establishes a new residential address (or a
new duty address, in the case of a member covered
by paragraph (2)(B)), the Secretary concerned shall
update the locator service to indicate the new ad-
dress of the member.
381
(4) AVAILABILITY OF INFORMATION.—The Sec-
retary of Defense shall make information regarding
the address of a member of the Armed Forces listed
in the locator service available, on request, to the
Federal Parent Locator Service established under
section 453 of the Social Security Act.
(b) FACILITATING GRANTING OF LEAVE FOR AT-
TENDANCE AT HEARINGS.—
(1) REGULATIONS.—The Secretary of each
military department, and the Secretary of Transpor-
tation with respect to the Coast Guard when it is
not operating as a service in the Navy, shall pre-
scribe regulations to facilitate the granting of leave
to a member of the Armed Forces under the juris-
diction of that Secretary in a case in which—
(A) the leave is needed for the member to
attend a hearing described in paragraph (2);
(B) the member is not serving in or with
a unit deployed in a contingency operation (as
defined in section 101 of title 10, United States
Code); and
(C) the exigencies of military service (as
determined by the Secretary concerned) do not
otherwise require that such leave not be grant-
ed.
382
(2) COVERED HEARINGS.—Paragraph (1) ap-
plies to a hearing that is conducted by a court or
pursuant to an administrative process established
under State law, in connection with a civil action—
(A) to determine whether a member of the
Armed Forces is a natural parent of a child; or
(B) to determine an obligation of a mem-
ber of the Armed Forces to provide child sup-
port.
(3) DEFINITIONS.—For purposes of this sub-
section:
(A) The term ‘‘court’’ has the meaning
given that term in section 1408(a) of title 10,
United States Code.
(B) The term ‘‘child support’’ has the
meaning given such term in section 459(i) of
the Social Security Act (42 U.S.C. 659(i)).
(c) PAYMENT OF MILITARY RETIRED PAY IN COM-
PLIANCE WITH CHILD SUPPORT ORDERS.—
(1) DATE
OF
CERTIFICATION
OF
COURT
ORDER.—Section 1408 of title 10, United States
Code, as amended by section 762(c)(4) of this Act,
is amended—
(A) by redesignating subsections (i) and (j)
as subsections (j) and (k), respectively; and
383
(B) by inserting after subsection (h) the
following:
‘‘(i) CERTIFICATION DATE.—It is not necessary that
the date of a certification of the authenticity or complete-
ness of a copy of a court order for child support received
by the Secretary concerned for the purposes of this section
be recent in relation to the date of receipt by the Sec-
retary.’’.
(2) PAYMENTS
CONSISTENT
WITH
ASSIGN-
MENTS OF RIGHTS TO STATES.—Section 1408(d)(1)
of such title is amended by inserting after the 1st
sentence the following: ‘‘In the case of a spouse or
former spouse who, pursuant to section 405(a)(8) of
the Social Security Act (42 U.S.C. 605(a)(8)), as-
signs to a State the rights of the spouse or former
spouse to receive support, the Secretary concerned
may make the child support payments referred to in
the preceding sentence to that State in amounts con-
sistent with that assignment of rights.’’.
(3) ARREARAGES OWED BY MEMBERS OF THE
UNIFORMED
SERVICES.—Section 1408(d) of such
title is amended by adding at the end the following:
‘‘(6) In the case of a court order for which effective
service is made on the Secretary concerned on or after
the date of the enactment of this paragraph and which
384
provides for payments from the disposable retired pay of
a member to satisy the amount of child support set forth
in the order, the authority provided in paragraph (1) to
make payments from the disposable retired pay of a mem-
ber to satisy the amount of child support set forth in a
court order shall apply to payment of any amount of child
support arrearages set forth in that order as well as to
amounts of child support that currently become due.’’.
(4) PAYROLL DEDUCTIONS.—The Secretary of
Defense shall begin payroll deductions within 30
days after receiving notice of withholding, or for the
first pay period that begins after such 30-day pe-
riod.
SEC. 764. VOIDING OF FRAUDULENT TRANSFERS.
Section 466 (42 U.S.C. 666), as amended by section
721 of this Act, is amended by adding at the end the
following:
‘‘(g) LAWS VOIDING FRAUDULENT TRANSFERS.—In
order to satisfy section 454(20)(A), each State must have
in effect—
‘‘(1)(A) the Uniform Fraudulent Conveyance
Act of 1981;
‘‘(B) the Uniform Fraudulent Transfer Act
of 1984; or
385
‘‘(C) another law, specifying indicia of
fraud which create a prima facie case that a
debtor transferred income or property to avoid
payment to a child support creditor, which the
Secretary finds affords comparable rights to
child support creditors; and
‘‘(2) procedures under which, in any case in
which the State knows of a transfer by a child sup-
port debtor with respect to which such a prima facie
case is established, the State must—
‘‘(A) seek to void such transfer; or
‘‘(B) obtain a settlement in the best inter-
ests of the child support creditor.’’.
SEC. 765. SENSE OF THE CONGRESS THAT STATES SHOULD
SUSPEND DRIVERS’, BUSINESS, AND OCCUPA-
TIONAL LICENSES OF PERSONS OWING PAST-
DUE CHILD SUPPORT.
It is the sense of the Congress that each State should
suspend any driver’s license, business license, or occupa-
tional license issued to any person who owes past-due child
support.
SEC. 766. WORK REQUIREMENT FOR PERSONS OWING
PAST-DUE CHILD SUPPORT.
Section 466(a) of the Social Security Act (42 U.S.C.
666(a)), as amended by sections 701(a), 715, 717(a), and
386
723 of this Act, is amended by adding at the end the
following:
‘‘(16) PROCEDURES TO ENSURE THAT PERSONS
OWING PAST-DUE SUPPORT WORK OR HAVE A PLAN
FOR PAYMENT OF SUCH SUPPORT.—
‘‘(A) Procedures requiring the State, in
any case in which an individual owes past-due
support with respect to a child receiving assist-
ance under a State program funded under part
A, to seek a court order that requires the indi-
vidual to—
‘‘(i) pay such support in accordance
with a plan approved by the court; or
‘‘(ii) if the individual is subject to
such a plan and is not incapacitated, par-
ticipate in such work activities (as defined
in section 404(b)(1)) as the court deems
appropriate.
‘‘(B) As used in subparagraph (A), the
term ‘past-due support’ means the amount of a
delinquency, determined under a court order, or
an order of an administrative process estab-
lished under State law, for support and mainte-
nance of a child, or of a child and the parent
with whom the child is living.’’.
387
SEC. 767. DEFINITION OF SUPPORT ORDER.
Section 453 (42 U.S.C. 653) as amended by sections
716 and 746(b) of this Act, is amended by adding at the
end the following:
‘‘(o) SUPPORT ORDER DEFINED.—As used in this
part, the term ‘support order’ means an order issued by
a court or an administrative process established under
State law that requires support and maintenance of a child
or of a child and the parent with whom the child is liv-
ing.’’.
Subtitle H—Medical Support
SEC. 771. TECHNICAL CORRECTION TO ERISA DEFINITION
OF MEDICAL CHILD SUPPORT ORDER.
(a) IN GENERAL.—Section 609(a)(2)(B) of the Em-
ployee Retirement Income Security Act of 1974 (29
U.S.C. 1169(a)(2)(B)) is amended—
(1) by striking ‘‘issued by a court of competent
jurisdiction’’;
(2) by striking the period at the end of clause
(ii) and inserting a comma; and
(3) by adding, after and below clause (ii), the
following:
‘‘if such judgment, decree, or order (I) is issued
by a court of competent jurisdiction or (II) is
issued by an administrative adjudicator and has
388
the force and effect of law under applicable
State law.’’.
(b) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendments made by
this section shall take effect on the date of the en-
actment of this Act.
(2) PLAN AMENDMENTS NOT REQUIRED UNTIL
JANUARY 1, 1996.—Any amendment to a plan re-
quired to be made by an amendment made by this
section shall not be required to be made before the
first plan year beginning on or after January 1,
1996, if—
(A) during the period after the date before
the date of the enactment of this Act and be-
fore such first plan year, the plan is operated
in accordance with the requirements of the
amendments made by this section; and
(B) such plan amendment applies retro-
actively to the period after the date before the
date of the enactment of this Act and before
such first plan year.
A plan shall not be treated as failing to be operated
in accordance with the provisions of the plan merely
because it operates in accordance with this para-
graph.
389
Subtitle I—Enhancing Responsibil-
ity and Opportunity for Non-
residential Parents
SEC. 781. GRANTS TO STATES FOR ACCESS AND VISITATION
PROGRAMS.
Part D of title IV (42 U.S.C. 651–669) is amended
by adding at the end the following:
‘‘SEC. 469A. GRANTS TO STATES FOR ACCESS AND VISITA-
TION PROGRAMS.
‘‘(a) IN GENERAL.—The Administration for Children
and Families shall make grants under this section to en-
able States to establish and administer programs to sup-
port and facilitate absent parents’ access to and visitation
of their children, by means of activities including medi-
ation (both voluntary and mandatory), counseling, edu-
cation, development of parenting plans, visitation enforce-
ment (including monitoring, supervision and neutral drop-
off and pickup), and development of guidelines for visita-
tion and alternative custody arrangements.
‘‘(b) AMOUNT OF GRANT.—The amount of the grant
to be made to a State under this section for a fiscal year
shall be an amount equal to the lesser of—
‘‘(1) 90 percent of State expenditures during
the fiscal year for activities described in subsection
(a); or
390
‘‘(2) the allotment of the State under sub-
section (c) for the fiscal year.
‘‘(c) ALLOTMENTS TO STATES.—
‘‘(1) IN GENERAL.—The allotment of a State
for a fiscal year is the amount that bears the same
ratio to the amount appropriated for grants under
this section for the fiscal year as the number of chil-
dren in the State living with only 1 biological parent
bears to the total number of such children in all
States.
‘‘(2) MINIMUM ALLOTMENT.—The Administra-
tion for Children and Families shall adjust allot-
ments to States under paragraph (1) as necessary to
ensure that no State is allotted less than—
‘‘(A) $50,000 for fiscal year 1996 or 1997;
or
‘‘(B) $100,000 for any succeeding fiscal
year.
‘‘(d) NO SUPPLANTATION OF STATE EXPENDITURES
FOR SIMILAR ACTIVITIES.—A State to which a grant is
made under this section may not use the grant to supplant
expenditures by the State for activities specified in sub-
section (a), but shall use the grant to supplement such
expenditures at a level at least equal to the level of such
expenditures for fiscal year 1995.
391
‘‘(e) STATE ADMINISTRATION.—Each State to which
a grant is made under this section—
‘‘(1) may administer State programs funded
with the grant, directly or through grants to or con-
tracts with courts, local public agencies, or non-prof-
it private entities;
‘‘(2) shall not be required to operate such pro-
grams on a statewide basis; and
‘‘(3) shall monitor, evaluate, and report on such
programs in accordance with regulations prescribed
by the Secretary.’’.
Subtitle J—Effect of Enactment
SEC. 791. EFFECTIVE DATES.
(a) IN GENERAL.—Except as otherwise specifically
provided (but subject to subsections (b) and (c))—
(1) the provisions of this title requiring the en-
actment or amendment of State laws under section
466 of the Social Security Act, or revision of State
plans under section 454 of such Act, shall be effec-
tive with respect to periods beginning on and after
October 1, 1996; and
(2) all other provisions of this title shall become
effective upon enactment.
392
(b) GRACE PERIOD FOR STATE LAW CHANGES.—The
provisions of this title shall become effective with respect
to a State on the later of—
(1) the date specified in this title, or
(2) the effective date of laws enacted by the leg-
islature of such State implementing such provisions,
but in no event later than the first day of the first cal-
endar quarter beginning after the close of the first regular
session of the State legislature that begins after the date
of the enactment of this Act. For purposes of the previous
sentence, in the case of a State that has a 2-year legisla-
tive session, each year of such session shall be deemed to
be a separate regular session of the State legislature.
(c) GRACE PERIOD
FOR STATE CONSTITUTIONAL
AMENDMENT.—A State shall not be found out of compli-
ance with any requirement enacted by this title if the State
is unable to so comply without amending the State con-
stitution until the earlier of—
(1) 1 year after the effective date of the nec-
essary State constitutional amendment; or
(2) 5 years after the date of the enactment of
this title.
393
TITLE VIII—MISCELLANEOUS
PROVISIONS
SEC. 801. SCORING.
(a) IN GENERAL.—None of the changes in direct
spending resulting from this Act shall be reflected in esti-
mates under section 252(d) of the Balanced Budget and
Emergency Deficit Control Act of 1985.
(b) TECHNICAL AMENDMENT.—Section 251(b)(2) of
the Balanced Budget and Emergency Deficit Control Act
of 1985 is amended by adding at the end the following
new subparagraph:
‘‘(H) SPECIAL ALLOWANCE FOR WELFARE RE-
FORM.—For any fiscal year, the adjustments shall
be appropriations for discretionary programs result-
ing from the Personal Responsibility Act of 1995 (as
described in the joint explanatory statement accom-
panying a conference report on that Act) in discre-
tionary accounts and the outlays flowing in all years
from such appropriations (but not to exceed
amounts authorized for those programs by that Act
for that fiscal year) minus appropriations for com-
parable discretionary programs for fiscal year 1995
(as described in the joint explanatory statement ac-
companying a conference report on that Act.’’.
394
SEC. 802. PROVISIONS TO ENCOURAGE ELECTRONIC BENE-
FIT TRANSFER SYSTEMS.
Section 904 of the Electronic Fund Transfer Act (15
U.S.C. 1693b) is amended—
(1) by striking ‘‘(d) In the event’’ and inserting
‘‘(d) 
APPLICABILITY
TO
SERVICE
PROVIDERS
OTHER
THAN
CERTAIN
FINANCIAL
INSTITU-
TIONS.—
‘‘(1) IN GENERAL.—In the event’’; and
(2) by adding at the end the following new
paragraph:
‘‘(2) STATE AND LOCAL GOVERNMENT ELEC-
TRONIC BENEFIT TRANSFER PROGRAMS.—
‘‘(A) EXEMPTION
GENERALLY.—The dis-
closures, protections, responsibilities, and rem-
edies established under this title, and any regu-
lation prescribed or order issued by the Board
in accordance with this title, shall not apply to
any electronic benefit transfer program estab-
lished under State or local law or administered
by a State or local government.
‘‘(B) EXCEPTION
FOR
DIRECT
DEPOSIT
INTO
RECIPIENT’S
ACCOUNT.—Subparagraph
(A) shall not apply with respect to any elec-
tronic funds transfer under an electronic benefit
transfer program for deposits directly into a
395
consumer account held by the recipient of the
benefit.
‘‘(C) RULE OF CONSTRUCTION.—No provi-
sion of this paragraph may be construed as—
‘‘(i) affecting or altering the protec-
tions otherwise applicable with respect to
benefits established by Federal, State, or
local law; or
‘‘(ii) otherwise superseding the appli-
cation of any State or local law.
‘‘(D) ELECTRONIC
BENEFIT
TRANSFER
PROGRAM
DEFINED.—For purposes of this
paragraph, the term ‘electronic benefit transfer
program’—
‘‘(i) means a program under which a
government agency distributes needs-tested
benefits by establishing accounts to be
accessed by recipients electronically, such
as through automated teller machines, or
point-of-sale terminals; and
‘‘(ii) does not include employment-re-
lated payments, including salaries and pen-
sion, retirement, or unemployment benefits
396
established by Federal, State, or local gov-
ernments.’’.
Æ
HR 1214 IH——2
HR 1214 IH——3
HR 1214 IH——4
HR 1214 IH——5
HR 1214 IH——6
HR 1214 IH——7
HR 1214 IH——8
HR 1214 IH——9
HR 1214 IH——10
HR 1214 IH——11
HR 1214 IH——12
HR 1214 IH——13
HR 1214 IH——14
HR 1214 IH——15
HR 1214 IH——16
HR 1214 IH——17
HR 1214 IH——18
HR 1214 IH——19
HR 1214 IH——20
HR 1214 IH——21
HR 1214 IH——22
HR 1214 IH——23
397
HR 1214 IH——24
HR 1214 IH——25
HR 1214 IH——26