‘‘(A) amounts on deposit in a bank account
may be seized to satisfy child support arrear-
ages determined under a court order or an
order of an administrative process established
under State law, solely through an administra-
tive process, pending notice to and an expedited
opportunity to be heard from the account hold-
er or holders; and
‘‘(B) if the account holder or holders fail
to successfully challenge the seizure (as deter-
mined under State law), the bank may be re-
quired to pay from the account to the entity
with the right to collect the arrearage the lesser
of—
‘‘(i) the amount of the arrearage; or
‘‘(ii) the amount on deposit in the ac-
count.’’.
SEC. 410. SEIZURE OF LOTTERY WINNINGS, SETTLEMENTS,
PAYOUTS, AWARDS, AND BEQUESTS, AND
SALE OF FORFEITED PROPERTY, TO PAY
CHILD SUPPORT ARREARAGES.
Section 466(a) (42 U.S.C. 666(a)), as amended by
sections 104, 205, 206, 207, 209, 210, 212, 405, 406(a),
407, 408, and 409 of this Act, is amended by inserting
after paragraph (25) the following:
‘‘(26) Procedures, in addition to other income
withholding procedures, under which a lien is im-
posed against property with the following effect:
‘‘(A) The distributor of the winnings from
a State lottery or State-sanctioned or tribal-
sanctioned gambling house or casino shall—
‘‘(i) suspend payment of the winnings
from the person otherwise entitled to the
payment until an inquiry is made to and a
response is received from the State child
support enforcement agency as to whether
the person owes a child support arrearage;
and
‘‘(ii) if there is such an arrearage,
withhold from the payment the lesser of
the amount of the payment or the amount
of the arrearage, and pay the amount with-
held to the agency for distribution.
‘‘(B) The person required to make a pay-
ment under a policy of insurance or a settle-
ment of a claim made with respect to the policy
shall—
‘‘(i) suspend the payment until an in-
quiry is made to and a response received
from the agency as to whether the person
otherwise entitled to the payment owes a
child support arrearage; and
‘‘(ii) if there is such an arrearage,
withhold from the payment the lesser of
the amount of the payment or the amount
of the arrearage, and pay the amount with-
held to the agency for distribution.
‘‘(C) The payor of any amount pursuant to
an award, judgment, or settlement in any ac-
tion brought in Federal or State court shall—
‘‘(i) suspend the payment of the
amount until an inquiry is made to and a
response is received from the agency as to
whether the person otherwise entitled to
the payment owes a child support arrear-
age; and
‘‘(ii) if there is such an arrearage,
withhold from the payment the lesser of
the amount of the payment or the amount
of the arrearage, and pay the amount with-
held to the agency for distribution.
‘‘(D) If the State seizes property forfeited
to the State by an individual by reason of a
criminal conviction, the State shall—
‘‘(i) hold the property until an inquiry
is made to and a response is received from
the agency as to whether the individual
owes a child support arrearage; and
‘‘(ii) if there is such an arrearage, sell
the property and, after satisfying the
claims of all other private or public claim-
ants to the property and deducting from
the proceeds of the sale the attendant costs
(such as for towing, storage, and the sale),
pay the lesser of the remaining proceeds or
the amount of the arrearage directly to the
agency for distribution.
‘‘(E) Any person required to make a pay-
ment in respect of a decedent shall—
‘‘(i) suspend the payment until an in-
quiry is made to and a response received
from the agency as to whether the person
otherwise entitled to the payment owes a
child support arrearage; and
‘‘(ii) if there is such an arrearage,
withhold from the payment the lesser of
the amount of the payment or the amount
of the arrearage, and pay the amount with-
held to the agency for distribution.’’.
SEC. 411. FRAUDULENT TRANSFER PURSUIT.
Section 466(a) (42 U.S.C. 666(a)), as amended by
sections 104, 205, 206, 207, 209, 210, 212, 405, 406(a),
407, 408, 409, and 410 of this Act, is amended by insert-
ing after paragraph (26) the following:
‘‘(27) Procedures requiring that, in any case re-
lated to child support, any transfer of property by
an individual who owes a child support arrearage
shall be presumed to be made with the intent to
avoid payment of the arrearage, and may be rebut-
ted by evidence to the contrary.’’.
SEC. 412. FULL IRS COLLECTION.
The Secretary of the Treasury, in consultation with
the Secretary of Health and Human Services, shall by reg-
ulation simplify the full collection process under section
6305 of the Internal Revenue Code of 1986 and reduce
the amount of child support arrearage needed before an
individual may apply for collection under such section.
SEC. 413. TAX REFUND OFFSET PROGRAM EXPANDED TO
COVER NON-AFDC POST-MINOR CHILDREN.
Section 464(c) (42 U.S.C. 664(c)) is amended—
(1) by striking ‘‘(1) Except as provided in para-
graph (2), as’’ and inserting ‘‘As’’;
(2) by inserting ‘‘(whether or not a minor)’’
after ‘‘a child’’ each place such term appears; and
(3) by striking paragraphs (2) and (3).
SEC. 414. ATTACHMENT OF PUBLIC AND PRIVATE RETIRE-
MENT FUNDS.
Section 466(a) (42 U.S.C. 666(a)), as amended by
sections 104, 205, 206, 207, 209, 210, 212, 405, 406(a),
407, 408, 409, 410, and 411 of this Act, is amended by
inserting after paragraph (27) the following:
‘‘(28) Procedures under which an individual
owed a child support arrearage (determined under a
court order or an order of an administrative process
established under State law) may, notwithstanding
section 401(a)(13) of the Internal Revenue Code of
1986, attach any interest in any public or private re-
tirement plan of the individual who owes the sup-
port, without the requirement of a separate court
order, and with notice and an expedited hearing pro-
vided if requested by the individual who owes the
support.’’.
SEC. 415. REPORTING OF CHILD SUPPORT ARREARAGES TO
CREDIT BUREAUS.
Section 466(a)(7)(A) (42 U.S.C. 666(a)(7)(A)) is
amended by striking ‘‘$1,000’’ and inserting ‘‘the amount
of the monthly support obligation’’.
SEC. 416. ELIMINATION OF STATUTES OF LIMITATIONS IN
CHILD SUPPORT CASES.
Section 466(a) (42 U.S.C. 666(a)), as amended by
sections 104, 205, 206, 207, 209, 210, 212, 405, 406(a),
407, 408, 409, 410, 411, and 414 of this Act, is amended
by inserting after paragraph (28) the following:
‘‘(29) Procedures which ensure that there is no
limit to the period in which any court order, or order
of an administrative process established under State
law, for support or maintenance of a child, may be
enforced.’’.
SEC. 417. INTEREST.
Section 466(a) (42 U.S.C. 666(a)), as amended by
sections 104, 205, 206, 207, 209, 210, 212, 405, 406(a),
407, 408, 409, 410, 411, 414, and 416 of this Act, is
amended by inserting after paragraph (29) the following:
‘‘(30) Procedures under which the State child
support enforcement agency must assess and collect
interest on all child support judgments, at the rate
determined for interest on money judgments, in ad-
dition to any late payment fee imposed by the State
under section 454(21).’’.
SEC. 418. BANKRUPTCY.
(a) DEFINITION.—Section 101 of title 11, United
States Code, is amended by inserting after paragraph (12)
the following:
‘‘(12A) ‘debt for child support’ means a debt of
a kind specified in section 523(a)(5) of this title for
maintenance or support of a child of the debtor;’’.
(b) EXCEPTION FROM AUTOMATIC STAY.—Section
362(b) of title 11, United States Code, is amended—
(1) by inserting ‘‘(A)’’ after ‘‘(2);
(2) by inserting ‘‘or’’ after the semicolon; and
(3) by adding at the end the following:
‘‘(B) under subsection (a) of the commence-
ment or continuation of a civil action or administra-
tive proceeding against the debtor—
‘‘(i) to establish parentage;
‘‘(ii) to establish, review, adjust, or modify
a judgment or order creating a debt for child
support; or
‘‘(iii) to enforce such judgment or order to
collect a debt for child support;’’.
(c) TREATMENT OF DEBT FOR CHILD SUPPORT IN
PROCEEDINGS UNDER CHAPTERS 11, 12, AND 13.—
(1) CHAPTER 11.—Section 1123(a) of title 11,
United States Code, is amended—
(A) by striking ‘‘and’’ at the end of para-
graph (6);
(B) by striking the period at the end of
paragraph (7) and inserting ‘‘; and’’; and
(C) by adding at the end the following:
‘‘(8) provide for the full payment when due of
debts for child support unless the parent with cus-
tody, or the guardian, of the child agrees other-
wise.’’.
(2) CHAPTER 12.—Section 1222(a) of title 11,
United States Code, is amended—
(A) by striking ‘‘and’’ at the end of para-
graph (2);
(B) by striking the period at the end of
paragraph (3) and inserting ‘‘; and’’; and
(C) by adding at the end the following:
‘‘(4) provide for the full payment when due of
debts for child support unless the parent with cus-
tody, or the guardian, of the child agrees other-
wise.’’.
(3) CHAPTER 13.—Section 1322(a) of title 11,
United States Code, is amended—
(A) by striking ‘‘and’’ at the end of para-
graph (2);
(B) by striking the period at the end of
paragraph (3) and inserting ‘‘; and’’; and
(C) by adding at the end the following:
‘‘(4) provide for the full payment when due of
debts for child support unless the parent with cus-
tody, or the guardian, of the child agrees other-
wise.’’.
(d) ASSERTION OF CLAIM FOR CHILD SUPPORT.—
Subchapter I of chapter 5 of title 11, United States Code,
is amended by adding at the end the following:
‘‘§ 511. Assertion of claim for child support
‘‘(a) FEE.—No fee shall be charged for filing of claim
for a debt for child support.
‘‘(b) REQUIREMENTS FOR APPEARANCE.—A claim
for a debt for child support may be made in any court
by a individual appearing—
‘‘(1) personally; or
‘‘(2) through an attorney admitted to practice
in any district court of the United States, without
the attorney’s being required to meet any admission
requirements other than those applicable in the judi-
cial district of the United States in which the attor-
ney is admitted to practice.’’.
(e) CLARIFICATION OF THE NONDISCHARGEABILITY
OF STATE PUBLIC DEBTS AND ASSIGNED CHILD SUP-
PORT BASED
ON
THE PROVISION
OF EXPENDITURES
UNDER PARTS A AND E OF TITLE IV OF THE SOCIAL
SECURITY ACT.—Section 523 of title 11, United States
Code, is amended by adding at the end the following:
‘‘(f) For the purposes of subsection (a)(5), a debt to
a child of the debtor for maintenance for or support of
the child includes State public debts and assigned child
support based on the provision of expenditures under
parts A and E of title IV of the Social Security Act.’’.
(f) PRIORITY OF CLAIMS.—(1) Section 507 of title
11, United States Code, is amended—
(A) in subsection (a)—
(i) in paragraph (8) by striking ‘‘(8)
Eighth’’ and inserting ‘‘(9) Ninth’’,
(ii) in paragraph (7) by striking ‘‘(7) Sev-
enth’’ and inserting ‘‘(8) Eighth’’, and
(iii) by inserting after paragraph (6) the
following:
‘‘(7) Seventh, allowed unsecured claims due to
a spouse, former spouse, or child of the debtor for
maintenance for or support of a child, in connection
with a separation agreement, divorce decree, or
other order of a court of record, a determination
made in accordance with State or territorial law by
a governmental unit, or a property settlement agree-
ment, but not to the extent that—
‘‘(A) such debt is assigned to another en-
tity, voluntarily, by operation of law, or other-
wise (other than debts assigned pursuant to
section 402(a)(26) of the Social Security Act,
or any such debt which has been assigned to
the Federal Government or to a State or any
political subdivision of such State); or
‘‘(B) such debt includes a liability des-
ignated as maintenance or support unless such
liability is actually in the nature of maintenance
or support;’’, and
(B) in subsection (d) by striking ‘‘or (6)’’ and
inserting ‘‘(6), or (7)’’.
(2) Title 11 of the United States Code is amended—
(A) 
in 
sections 
502(i), 
503(b)(1)(B)(i),
523(a)(1)(A), 
and 
1123(a)(1) 
by 
striking
‘‘507(a)(7)’’ and inserting ‘‘507(a)(8)’’,
(B) in section 724(b)(2) by striking ‘‘or
507(a)(6)’’ and inserting ‘‘507(a)(6), or 507(a)(7)’’,
(C) in section 726(b) by striking ‘‘or (7)’’ and
inserting ‘‘, (7), or (8)’’, and
(D) in section 1129(a)(9)—
(i) in subparagraph (B) by striking ‘‘or
507(a)(6)’’ and inserting ‘‘, 507(a)(6), or
507(a)(7)’’, and
(ii) in subparagraph (C) by striking
‘‘507(a)(7)’’ and inserting ‘‘507(a)(8)’’.
(g) PROTECTION OF LIENS.—Section 522(f)(1) of
title 11, United States Code, is amended to read as fol-
lows:
‘‘(1) a judicial lien (other than a judicial lien
that secures a debt to a spouse, former spouse, or
child of the debtor for maintenance for or support
of a child, in connection with a separation agree-
ment, divorce decree or other order of a court of
record, determination made in accordance with State
or territorial law by a governmental unit, or prop-
erty settlement agreement, to the extent that the
debt—
‘‘(A) is not assigned to another entity, vol-
untarily, by operation of law, or otherwise; and
‘‘(B) includes a liability designated as
maintenance or support, unless such liability is
actually in the nature of maintenance or sup-
port).’’.
(h) EXCEPTION TO DISCHARGE.—Section 523 of title
11, United States Code, is amended—
(1) in subsection (a)—
(A) in paragraph (11) by striking ‘‘or’’ at
the end,
(B) in paragraph (12) by inserting ‘‘or’’
after the semicolon at the end, and
(C) by adding at the end the following:
‘‘(13) assumed or incurred by the debtor in the
course of a divorce or separation or in connection
with a separation agreement, divorce decree or other
order of a court of record, a determination made in
accordance with State or territorial law by a govern-
mental unit, or property settlement agreement, un-
less—
‘‘(A) excepting such debt from discharge
under this paragraph would impose an undue
hardship for the debtor; and
‘‘(B) discharging such debt would result in
a benefit to the debtor that outweighs the det-
rimental consequences to a child of the debt-
or.’’, and
(2) in subsection (c)(1) by striking ‘‘or (6)’’
each place it appears and inserting ‘‘, or (13)’’.
(i) PROTECTION AGAINST TRUSTEE AVOIDANCE.—
Section 547(c) of title 11, United States Code, is amend-
ed—
(1) by striking ‘‘or’’ at the end of para-
graph (6);
(2) by redesignating paragraph (7) as
paragraph (8); and
(3) by inserting after paragraph (6) the
following new paragraph:
‘‘(7) to the extent that the transfer was a bona
fide payment of a debt to a spouse, former spouse,
or child of the debtor for maintenance for or support
of such child, in connection with a separation agree-
ment, divorce decree or other order of a court of
record, determination made in accordance with State
or territorial law by a governmental unit, or prop-
erty settlement agreement, but not to the extent that
such debt—
‘‘(A) is assigned to another entity, volun-
tarily, by operation of law, or otherwise; or
‘‘(B) includes a liability designated as
maintenance or support, unless such liability is
actually in the nature of maintenance or sup-
port; or’’.
SEC. 419. FEDERAL GOVERNMENT COOPERATION IN EN-
FORCEMENT OF SUPPORT OBLIGATIONS OF
MEMBERS AND FORMER MEMBERS OF THE
ARMED FORCES.
(a) AVAILABILITY OF CURRENT LOCATOR INFORMA-
TION.—
(1) MAINTENANCE
OF
ADDRESS
INFORMA-
TION.—Each worldwide personnel locator service of
the Armed Forces and each personnel locator service
of the Armed Forces maintained for a military in-
stallation shall include the residential address of
each member of the Armed Forces listed in such
service. Within 30 days after a change of duty sta-
tion or residential address of a member listed in a
locator service, the Secretary concerned shall update
the locator service to indicate the new residential ad-
dress of the member.
(2) AVAILABILITY OF INFORMATION.—The Sec-
retary of Defense shall prescribe regulations to make
information regarding the residential address of a
member of the Armed Forces available, on request,
to any authorized person for the purposes of part D
of title IV of the Social Security Act.
(3) DEFINITIONS.—For purposes of this sub-
section:
(A) The term ‘‘authorized person’’ has the
meaning given that term in section 453(c) of
the Social Security Act (42 U.S.C. 653(c)).
(B) The term ‘‘Secretary concerned’’ has
the meaning given that term in section
101(a)(9) of title 10, United States Code.
(b) FACILITATING THE GRANTING OF LEAVE FOR
ATTENDANCE AT HEARINGS.—
(1) REGULATIONS REQUIRED.—The Secretary
concerned shall prescribe regulations to facilitate the
granting of a leave of absence to a member of the
Armed Forces under the jurisdiction of that Sec-
retary when necessary for the member to attend a
hearing of a court that is conducted in connection
with a civil action—
(A) to determine whether the member is a
natural parent of a child; or
(B) to determine an obligation of the mem-
ber to provide child support.
(2) WAIVER AUTHORITY.—The regulations pre-
scribed under paragraph (1) may authorize a waiver
of the applicability of the regulations to a member
of the Armed Forces when—
(A) the member is serving in an area of
combat operations; or
(B) such a waiver is otherwise necessary in
the national security interest of the United
States.
(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 462 of the
Social Security Act (42 U.S.C. 662).
(C) The term ‘‘Secretary concerned’’ has
the meaning given that term in section
101(a)(9) of title 10, United States Code.
(c) PAYMENT OF MILITARY RETIRED PAY IN COM-
PLIANCE WITH COURT ORDERS.—
(1) DATE
OF
CERTIFICATION
OF
COURT
ORDER.—Section 1408 of title 10, United States
Code, is amended—
(A) by redesignating subsection (i) as sub-
section (j); and
(B) by inserting after subsection (h) the
following new subsection:
‘‘(i) CERTIFICATION DATE.—It is not necessary that
the date of a certification of the authenticity or 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.’’.
(2) PAYMENTS
CONSISTENT
WITH
ASSIGN-
MENTS OF RIGHTS TO STATES.—
(A) AUTHORITY.—Subsection (d)(1) of
such section is amended by inserting after the
first sentence the following: ‘‘In the case of a
spouse or former spouse who, pursuant to sec-
tion 402(a)(26) of the Social Security Act (42
U.S.C. 602(26)), assigns to a State the rights
of the spouse or former spouse to receive sup-
port, the Secretary concerned may make the
child support payments referred to in the pre-
ceding sentence to that State in amounts con-
sistent with the assignment of rights.’’.
(B) RULE OF CONSTRUCTION.—Subsection
(c)(2) of such section is amended—
(i) by inserting after the first sentence
the following: ‘‘The second sentence of sub-
section (d)(1) shall not be construed to
create any such right, title, or interest.’’;
(ii) by inserting ‘‘(A)’’ after ‘‘(2)’’;
and
(iii) by designating the last sentence
as subparagraph (B) and conforming the
margins accordingly.
(3) ARREARAGES OWED BY MEMBERS OF THE
UNIFORMED
SERVICES.—Part D of title IV (42
U.S.C. 651–669) is amended by inserting after sec-
tion 465 the following:
‘‘SEC. 465A. PAYMENT OF CHILD SUPPORT ARREARAGES
OWED BY MEMBERS OF THE UNIFORMED
SERVICES.
‘‘Any authority, requirement, or procedure provided
in this part or section 1408 of title 10, United States
Code, that applies to the payment of child support owed
by a member of the uniformed services (as defined in sec-
tion 101 of title 37, United States Code) shall apply to
the payment of child support arrearages as well as to
amounts of child support that are currently due.’’.
SEC. 420. STATES REQUIRED TO ENACT THE UNIFORM
INTERSTATE FAMILY SUPPORT ACT.
(a) IN GENERAL.—Section 466 (42 U.S.C. 666) is
amended by adding at the end the following:
‘‘(f) In order to satisfy section 454(20)(A), each
State must have in effect laws which adopt the officially
approved version of the Uniform Interstate Family Sup-
port Act adopted by the National Conference of Commis-
sioners on Uniform State Laws in August 1992.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply to payments under part D of
title IV of the Social Security Act for calendar quarters
ending 2 or more years after the date of the enactment
of this Act.
SEC. 421. DENIAL OF PASSPORTS TO NONCUSTODIAL PAR-
ENTS SUBJECT TO STATE ARREST WARRANTS
IN CASES OF NONPAYMENT OF CHILD SUP-
PORT.
The Secretary of State is authorized to refuse a pass-
port or revoke, restrict, or limit a passport in any case
in which the Secretary of State determines or is informed
by competent authority that the applicant or passport
holder is a noncustodial parent who is the subject of an
outstanding State warrant of arrest for nonpayment of
child support, where the amount in controversy is not less
than $10,000.
SEC. 422. DENIAL OF FEDERAL BENEFITS, LOANS, GUARAN-
TEES, AND EMPLOYMENT TO CERTAIN PER-
SONS WITH LARGE CHILD SUPPORT ARREAR-
AGES.
(a) BENEFITS, LOANS, AND GUARANTEES.—Not-
withstanding any other provision of law, each agency or
instrumentality of the Federal Government may not,
under any program that the agency or instrumentality su-
pervises or administers, provide a benefit to, make a loan
to, or provide any guarantee for the benefit of, any per-
son—
(1) whose child support arrearages, determined
under a court order or an order of an administrative
process established under State law, exceed $1,000;
and
(2) who is not in compliance with a plan or an
agreement to repay the arrearages.
(b) EMPLOYMENT.—
(1) IN GENERAL.—Notwithstanding any other
provision of law, an individual shall be considered in-
eligible to accept employment in a position in the
Federal Government if—
(A) such individual has child support ar-
rearages, determined under a court order or an
order of an administrative process established
under State law, exceeding $1,000; and
(B) such individual is not in compliance
with a plan or agreement to repay the arrear-
ages.
(2) REGULATIONS.—Regulations to carry out
paragraph (1) shall—
(A) with respect to positions in the execu-
tive branch, be prescribed by the President (or
his designee);
(B) with respect to positions in the legisla-
tive branch, be prescribed jointly by the Presi-
dent pro tempore of the Senate and the Speak-
er of the House of Representatives (or their
designees); and
(C) with respect to positions in the judicial
branch, be prescribed by the Chief Justice of
the United States (or his designee).
(3) CHILD SUPPORT DEFINED.—For purposes
of this subsection, the term ‘‘child support’’ has the
meaning given such term in section 462 of the So-
cial Security Act.
SEC. 423. STATES REQUIRED TO ORDER COURTS TO ALLOW
ASSIGNMENT OF LIFE INSURANCE BENEFITS
TO SATISFY CHILD SUPPORT ARREARAGES.
Section 466(a) (42 U.S.C. 666(a)), as amended by
sections 104, 205, 206, 207, 209, 210, 212, 405, 406(a),
407, 408, 409, 410, 411, 414, 416, and 417 of this Act,
is amended by inserting after paragraph (30) the follow-
ing:
‘‘(31) Procedures allowing State courts to—
‘‘(A) order the issuer of a life insurance
policy to change the beneficiary provisions of
the policy to effect an assignment of the bene-
fits payable to a beneficiary under the policy, in
whole or in part, to a child to satisfy a child
support arrearage, determined under a court
order or an order of an administrative process
established under State law, owed by the bene-
ficiary with respect to the child; and
‘‘(B) prohibit the sale, assignment, or
pledge as collateral of the policy, in whole or in
part, by the beneficiary of the policy.’’.
SEC. 424. INTERESTS IN JOINTLY HELD PROPERTY SUB-
JECT TO ASSIGNMENT TO SATISFY CHILD
SUPPORT ARREARAGES.
Section 466(a) (42 U.S.C. 666(a)), as amended by
sections 104, 205, 206, 207, 209, 210, 212, 405, 406(a),
407, 408, 409, 410, 411, 414, 416, 417, and 423 of this
Act, is amended by inserting after paragraph (31) the fol-
lowing:
‘‘(32) Procedures allowing State courts to order
the assignment of an interest in jointly held property
to an individual owed a child support arrearage (de-
termined under a court order or an order of an ad-
ministrative process established under State law) by
a holder of an interest in the property, to the extent
of the arrearage.’’.
SEC. 425. INTERNATIONAL CHILD SUPPORT ENFORCE-
MENT.
(a) SENSE OF THE CONGRESS THAT THE UNITED
STATES SHOULD RATIFY THE UNITED NATIONS CON-
VENTION OF 1956.—It is the sense of the Congress that
the United States should ratify the United Nations Con-
vention of 1956.
(b) TREATMENT OF INTERNATIONAL CHILD SUP-
PORT CASES AS INTERSTATE CASES.—Section 454 (42
U.S.C. 654), as amended by sections 211(e) and 301(a)
of this Act, is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(25);
(2) by striking the period at the end of para-
graph (26) and inserting ‘‘; and’’; and
(3) by inserting after paragraph (26) the fol-
lowing:
‘‘(27) provide that the State must treat inter-
national child support cases in the same manner as
the State treats interstate child support cases.’’.
SEC. 426. NONLIABILITY FOR DEPOSITORY INSTITUTIONS
PROVIDING FINANCIAL RECORDS TO STATE
CHILD SUPPORT ENFORCEMENT AGENCIES
IN CHILD SUPPORT CASES.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of Federal or State law, a depository institution shall
not be liable under any Federal or State law to any person
for disclosing any financial record of an individual to a
State child support enforcement agency attempting to es-
tablish, modify, or enforce a child support obligation of
such individual.
(b) PROHIBITION
OF DISCLOSURE
OF FINANCIAL
RECORD OBTAINED
BY STATE CHILD SUPPORT EN-
FORCEMENT AGENCY.—A State child support enforcement
agency which obtains a financial record of an individual
from a financial institution pursuant to subsection (a)
may disclose such financial record only for the purpose
of, and to the extent necessary in, establishing, modifying,
or enforcing a child support obligation of such individual.
(c) CIVIL DAMAGES FOR UNAUTHORIZED DISCLO-
SURE.—
(1) DISCLOSURE BY STATE OFFICER OR EM-
PLOYEE.—If any officer or employee of a State
knowingly, or by reason of negligence, discloses a fi-
nancial record of an individual in violation of sub-
section (b), such individual may bring a civil action
for damages against the officer or employee in the
personal capacity of the officer or employee, in a dis-
trict court of the United States.
(2) NO LIABILITY FOR GOOD FAITH BUT ERRO-
NEOUS
INTERPRETATION.—No liability shall arise
under this subsection with respect to any disclosure
which results from a good faith, but erroneous, in-
terpretation of subsection (b).
(3) DAMAGES.—In any action brought under
paragraph (1), upon a finding of liability on the part
of the defendant, the defendant shall be liable to the
plaintiff in an amount equal to the sum of—
(A) the greater of—
(i) $1,000 for each act of unauthor-
ized disclosure of a financial record with
respect to which such defendant is found
liable; or
(ii) the sum of—
(I) the actual damages sustained
by the plaintiff as a result of such un-
authorized disclosure; plus
(II) in the case of a willful disclo-
sure or a disclosure which is the re-
sult of gross negligence, punitive dam-
ages; plus
(B) the costs of the action.
(d) DEFINITIONS.—For purposes of this section:
(1) The term ‘‘depository institution’’ means—
(A) a depository institution, as defined by
section 3(c) of the Federal Deposit Insurance
Act;
(B) an institution-affiliated party, as de-
fined by section 3(u) of such Act; and
(C) any Federal credit union or State cred-
it union, as defined by section 101 of the Fed-
eral Credit Union Act, including an institution-
affiliated party of such a credit union, as de-
fined by section 206(r) of such Act.
(2) The term ‘‘financial record’’ has the mean-
ing given such term by section 1101 of the Right to
Financial Privacy Act of 1978.
(3) The term ‘‘State child support enforcement
agency’’ means a State agency which administers a
State program for establishing and enforcing child
support obligations.
SEC. 427. COST-OF-LIVING ADJUSTMENT OF CHILD SUP-
PORT AWARDS.
Part D of title IV (42 U.S.C. 651–669) is amended
by inserting after section 467 the following:
‘‘SEC. 467A. COST-OF-LIVING ADJUSTMENT OF CHILD SUP-
PORT AWARDS.
‘‘(a) IN GENERAL.—Each State, as a condition for
having its State plan approved under this part, shall have
in effect such laws and procedures as are necessary to en-
sure that each child support order issued or modified in
the State after the effective date of this section shall pro-
vide that amount of any child support award specified in
the order shall, on each anniversary of the 1st day of the
calendar month in which the order is so issued or modi-
fied, increase by the percentage (if any) by which—
‘‘(1) the average of the Consumer Price Index
(as defined in section 1(f)(5) of the Internal Reve-
nue Code of 1986) for the 12-month period that
ends with the anniversary; exceeds
‘‘(2) the average of the Consumer Price Index
(as so defined) for the 12-month period that ends on
such 1st day.
‘‘(b) RULE
OF INTERPRETATION.—Subsection (a)
shall not be construed to eliminate other grounds for
modifying a child support award.’’.
SEC. 428. ANNUAL EXCHANGE OF FINANCIAL INFORMATION
BY PARTIES TO CHILD SUPPORT ORDER.
Section 466(a) (42 U.S.C. 666(a)), as amended by
sections 104, 205, 206, 207, 209, 210, 212, 405, 406(a),
407, 408, 409, 410, 411, 414, 416, 417, 423, and 424
of this Act, is amended by inserting after paragraph (32)
the following:
‘‘(33) Procedures to ensure that each party to
a child support order issued or modified in the State
discloses to the other party to the order a complete
statement of the financial condition of the party.’’.
SEC. 429. CRIMINAL PENALTIES FOR FAILURE TO PAY
CHILD SUPPORT.
Section 466(a) (42 U.S.C. 666(a)), as amended by
sections 104, 205, 206, 207, 209, 210, 212, 405, 406(a),
407, 408, 409, 410, 411, 414, 416, 417, 423, and 424
of this Act, is amended by inserting after paragraph (33)
the following:
‘‘(34) Procedures under which—
‘‘(A) criminal penalties may be imposed for
the failure to pay child support; and
‘‘(B) use immunity may be granted to
compel testimony in civil child support proceed-
ings in which the defendant claims a Fifth
Amendment privilege against self-incrimination,
and if granted, bars Federal or other State
criminal prosecution for failure to pay child
support based on the testimony given in the
civil proceeding with respect to which use im-
munity was granted.’’.
TITLE V—COLLECTION AND
DISTRIBUTION
SEC. 501. PRIORITIES IN DISTRIBUTION OF COLLECTED
CHILD SUPPORT.
(a) STATE DISTRIBUTION PLAN.—Section 457 (42
U.S.C. 657) is amended by adding at the end the follow-
ing:
‘‘(e) Beginning on September 1, 1995, the amounts
that a State collects as child support (including interest)
pursuant to a plan approved under this part, other than
amounts so collected through a tax refund offset, shall
(subject to subsection (d)) be paid—
‘‘(1) first to the individual owed the support or
(if the individual assigned to the State the payment
of the support) to the State, to the extent necessary
to satisfy the current month’s support obligation;
‘‘(2) then to the individual owed the support, to
the extent necessary to satisfy any arrearage;
‘‘(3) then, at the option of the State, to the
State, to the extent necessary to reimburse the State
for assistance provided with respect to the child
under this title (without interest); and
‘‘(4) then to other States, to the extent nec-
essary to reimburse such other States for assistance
provided with respect to the child under this title
(without interest), in the order in which such assist-
ance was provided.’’.
(b) STUDY AND PILOT PROJECTS.—
(1) IN GENERAL.—The Comptroller General of
the United States shall conduct studies and pilot
projects of systems under which States would be re-
quired to pay the child support collected pursuant to
a State plan approved under part D of title IV of
the Social Security Act to the individuals to whom
the support is owed before making any payment to
reimburse any State for assistance provided with re-
spect to the child under part A of such title.
(2) REPORT
TO
THE
CONGRESS.—Within 3
years after the date of the enactment of this Act, the
Comptroller General shall submit to the Committee
on Ways and Means of the House of Representatives
and the Committee on Finance of the Senate a re-
port on each study and pilot project conducted pur-
suant to paragraph (1), including a cost-benefit
analysis and an analysis of the costs that would be
avoided under the program of aid to families with
dependent children under part A of title IV of the
Social Security Act, the program of medical assist-
ance under title XIX of such Act, and the food
stamp program under the Food Stamp Act of 1977,
if the various systems studied were implemented.
(c) REVISION OF FEDERAL INCOME TAX REFUND
OFFSET.—Section 6402 of the Internal Revenue Code of
1986 (relating to authority to make credits or refunds)
is amended—
(1) in subsection (c), by striking ‘‘after any
other reductions allowed by law (but before’’ and in-
serting ‘‘before any other reductions allowed by law
(and before’’; and
(2) in subsection (d), by striking ‘‘with respect
to past-due support collected pursuant to an assign-
ment under section 402(a)(26) of the Social Security
Act’’.
(d) $50 DISREGARDED
FOR ALL MEANS-TESTED
PROGRAMS.—Section 457(b)(1) (42 U.S.C. 657(b)(1)) is
amended by inserting ‘‘under this part or under any other
Federal program which determines eligibility for or the
amount of assistance based on the income or assets of the
applicant for or recipient of the assistance’’ after ‘‘during
such month’’.
(e) FILL-THE-GAP POLICIES ALLOWED.—Section
402(a)(28) (42 U.S.C. 602(a)(28)) is amended by striking
the open parenthesis and all that follows through the close
parenthesis.
SEC. 502. STATE CLAIMS AGAINST NONCUSTODIAL PARENT
LIMITED TO ASSISTANCE PROVIDED TO THE
CHILD.
Section 466(a) (42 U.S.C. 666(a)), as amended by
sections 104, 205, 206, 207, 209, 210, 212, 405, 406(a),
407, 408, 409, 410, 411, 414, 416, 417, 423, 424, 428,
and 429 of this Act, is amended by inserting after para-
graph (34) the following:
‘‘(35)(A) Procedures under which any claims
the State may have against a noncustodial parent
for a child’s portion of the assistance provided under
a State plan approved under part A shall not exceed
the amount specified as child support under a court
or administrative order.
‘‘(B) As used in subparagraph (A), the term
‘child’s portion’ means the assistance that would
have been provided with respect to the child if the
needs of the caretaker relative of the child had not
been taken into account in making the determination
with respect to the child’s family under section
402(a)(7).’’.
SEC. 503. FEES FOR NON-AFDC CLIENTS.
(a) IN
GENERAL.—Section 454(6) (42 U.S.C.
654(6)) is amended—
(1) in subparagraph (B), by striking ‘‘or recov-
ered’’ and all that follows through ‘‘program)’’;
(2) in subparagraph (C), by inserting ‘‘on the
parent who owes the child or spousal support obliga-
tion involved’’ after ‘‘imposed’’;
(3) in subparagraph (D), by striking ‘‘individ-
ual who’’ and inserting ‘‘the noncustodial parent if
the child whose parentage is to be determined
through the tests’’; and
(4) in subparagraph (E), by striking all that
follows ‘‘may be collected’’ and inserting ‘‘from the
parent who owes the child or spousal support obliga-
tion involved, but only after all current and past-due
support and interest charges have been collected’’.
(b) PUBLICATION
OF FEE SCHEDULES.—Section
454(10) (42 U.S.C. 654(10)) is amended by inserting ‘‘,
and shall publish guidelines and schedules of fees which
may be imposed under paragraph (6), and which shall be
reasonable’’ before the semicolon.
SEC. 504. COLLECTION AND DISBURSEMENT POINTS FOR
CHILD SUPPORT.
Section 454 (42 U.S.C. 654), as amended by sections
211(e), 301(a), and 425 of this Act, is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(26);
(2) by striking the period at the end of para-
graph (27) and inserting ‘‘; and’’; and
(3) by inserting after paragraph (27) the fol-
lowing:
‘‘(28) provide for only 1 location, or several
local or regional locations for the collection of, ac-
counting for, and disbursement of child support in
cases enforced under the State plan under this
part.’’.
TITLE VI—FEDERAL ROLE
SEC. 601. PLACEMENT AND ROLE OF THE OFFICE OF CHILD
SUPPORT ENFORCEMENT.
Section 452(a) (42 U.S.C. 652(a)), as amended by
sections 208(a) and 401(b) of this Act, is amended—
(1) in the matter preceding paragraph (1), by
striking ‘‘, under the direction’’ and all that follows
through ‘‘and who’’ and inserting ‘‘which shall be
known as the Office of Child Support Enforcement,
shall be under the direction of an Assistant Sec-
retary appointed by the President with the advice
and consent of the Senate, and shall have its own
legal counsel. The Assistant Secretary shall report
directly to the Secretary and’’;
(2) in paragraph (10)—
(A) in subparagraph (A), by inserting
‘‘using a methodology that reflects cost-avoid-
ance as well as cost-recovery’’ after ‘‘the States
and the Federal Government’’;
(B) by redesignating subparagraphs (H)
and (I) as subparagraphs (I) and (J), respec-
tively; and
(C) by inserting after subparagraph (G)
the following:
‘‘(H) the budgetary allocation of the $50
pass through equally between part A and this
part;’’;
(3) by striking ‘‘and’’ at the end of paragraph
(11);
(4) by striking the period at the end of para-
graph (12) and inserting ‘‘; and’’; and
(5) by inserting after paragraph (12) the fol-
lowing:
‘‘(13) initiate and actively pursue with other
Federal agencies, such as the Department of De-
fense, coordinated efforts on Federal legislation.’’.
SEC. 602. TRAINING.
(a) 
FEDERAL
TRAINING
ASSISTANCE.—Section
452(a)(7) (42 U.S.C. 652(a)(7)) is amended by inserting
‘‘and training’’ after ‘‘technical assistance’’.
(b) STATE TRAINING PROGRAM.—Section 454 (42
U.S.C. 654), as amended by sections 211(e), 301(a), 425,
and 504 of this Act, is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(27);
(2) by striking the period at the end of para-
graph (28) and inserting ‘‘; and’’; and
(3) by inserting after paragraph (28) the fol-
lowing:
‘‘(29) provide that the State will develop and
implement a training program under which training
is to be provided not less frequently than annually
to all personnel performing functions under the
State plan.’’.
(c) 
REPORT.—Section 
452(a)(10) 
(42 
U.S.C.
652(a)(10)), as amended by section 601(2) of this Act,
is amended by redesignating subparagraphs (I) and (J)
as subparagraphs (J) and (K), respectively, and by insert-
ing after subparagraph (H) the following:
‘‘(I) the training activities at the Federal
and State levels, the training audit, and the
amounts expended on training;’’.
SEC. 603. STAFFING.
(a) METHODOGY.—Not later than 1 year after the
date of the enactment of this Act, the Secretary of Health
and Human Services shall develop the methodology to be
used to determine the staffing requirements of each State
program operated under part D of title IV of the Social
Security Act, including each agency and court involved in
the program.
(b) IMPLEMENTATION.—Not later than 2 years after
the date of the enactment of this Act, each State with
a plan approved under part D of title IV of the Social
Security Act shall—
(1) use the methodology developed pursuant to
subsection (a) to determine the staffing require-
ments of the State program operated under the
plan, including each agency and court involved in
the program; and
(2) staff the program, and each agency and
court involved in the program, in accordance with
the staffing requirements determined pursuant to
paragraph (1).
(c) IMPLEMENTATION.—The Secretary of Health and
Human Services shall reduce by 2 percent the amount oth-
erwise payable to a State pursuant to section 455(a)(1)(A)
of the Social Security Act for any calendar quarter ending
2 or more years after the date of the enactment of this
Act, if the Secretary determines that, during the quarter,
the State is not in substantial compliance with subsection
(b)(2).
SEC. 604. CHILD SUPPORT DEFINITION.
(a) IN GENERAL.—Section 452 (42 U.S.C. 652) is
amended by adding at the end the following:
‘‘(j) For purposes of this part, the term ‘child sup-
port’ shall have the meaning given such term in section
462(b).’’.
(b) CONFORMING AMENDMENTS.—Section 462(b)
(42 U.S.C. 662(b)) is amended—
(1) by inserting ‘‘and lump sum’’ after ‘‘peri-
odic’’, and
(2) by inserting ‘‘child care,’’ after ‘‘clothing,’’.
SEC. 605. 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
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, 1995.—Any amendment to a plan re-
100
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,
1995, 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.
SEC. 606. AUDITS.
(a) STUDY.—
(1) CONTRACT AUTHORITY.—The Secretary of
Health and Human Services shall enter into a con-
tract for a study of the audit process of the Office
of Child Support Enforcement to develop criteria
and methodology for auditing the activities of State
102
(iii) should include the escrowing of
funds withheld as penalties for use by
States to improve their child support pro-
grams in a manner approved by the Sec-
retary of Health and Human Services.
(b) REPORT.—Not later than 90 days after comple-
tion of the study required by subsection (a), the Secretary
of Health and Human Services shall submit to the Com-
mittee on Ways and Means of the House of Representa-
tives and the Committee on Finance of the Senate a report
on the results of the study.
(c) LIMITATION ON CASES INCLUDED IN AUDITS.—
Section 452(a)(4) (42 U.S.C. 652(a)(4)) is amended—
(1) by inserting ‘‘(A)’’ after ‘‘(4)’’;
(2) by adding ‘‘and’’ at the end; and
(3) by adding after and below the end the fol-
lowing:
‘‘(B) notwithstanding subparagraph (A), each
audit under subparagraph (A) shall be limited to
cases open on the date the audit begins and cases
closed within 180 days before such date, unless the
Secretary has determined, in accordance with regula-
tions, that there is a need for a longitudinal review
of case handling that includes cases that have been
closed for more than 180 days;’’.
103
SEC. 607. ESTABLISHMENT OF CHILD SUPPORT ASSUR-
ANCE DEMONSTRATION PROJECTS.
(a) IN GENERAL.—In order to encourage States to
provide a guaranteed minimum level of child support for
every eligible child not receiving such support, the Sec-
retary of Health and Human Services (hereafter in this
section referred to as the ‘‘Secretary’’) shall make grants
to 4 qualified States to conduct demonstration projects for
the purpose of establishing or improving a system of as-
sured minimum child support payments in accordance
with this section.
(b) CONTENTS OF APPLICATION.—An application for
grants under this section shall be submitted by the
Governor of a State and shall—
(1) contain a description of the proposed child
support assurance project to be established, imple-
mented, or improved using amounts provided under
this section, including the level of the assured bene-
fit to be provided, the specific activities to be under-
taken, and the agencies that will be involved;
(2) specify that the project will be carried out
throughout the State;
(3) estimate the number of children who will be
eligible for assured minimum child support payments
under the project, and the amounts to which they
104
will be entitled on average as individuals and in the
aggregate;
(4) describe the child support guidelines and re-
view procedures which are in use in the State and
any expected modifications;
(5) contain a commitment by the State to carry
out the project during a period of not less than 3
and not more than 5 consecutive fiscal years begin-
ning with fiscal year 1996;
(6) contain assurances that the State—
(A) is currently at or above the national
median paternity establishment rate (as defined
in section 452(g)(2) of the Social Security Act),
(B) will improve the performance of the
agency designated by the State to carry out the
requirements under part D of title IV of the
Social Security Act by at least 4 percent each
year in which the State operates a child support
assurance project under this section in—
(i) the number of cases in which pa-
ternity is established when required;
(ii) the number of cases in which child
support orders are obtained; and
105
(iii) the number of cases with child
support orders in which collections are
made; and
(C) to the maximum extent possible under
current law, will use Federal, State, and local
job training assistance to assist individuals who
have been determined to be unable to meet such
individuals’ child support obligations;
(7) describe the extent to which multiple agen-
cies, including those responsible for administering
the Aid to Families With Dependent Children Pro-
gram under part A of title IV of the Social Security
Act and child support collection, enforcement, and
payment under part D of such title, will be involved
in the design and operation of the child support as-
surance project; and
(8) contain such other information as the Sec-
retary may require by regulation.
(c) USE OF FUNDS.—A State shall use amounts pro-
vided under a grant awarded under this section to carry
out a child support assurance project designed to provide
a minimum monthly child support benefit for each eligible
child in the State to the extent that such minimum child
support is not paid in a month by the noncustodial parent.
106
(d) REQUIREMENTS.—(1) A child support assurance
project funded under this section shall provide that—
(A) any child (as defined in paragraph (2)) with
a living noncustodial parent for whom a child sup-
port order has been sought (as defined in paragraph
(3)) or obtained and any child who meets ‘‘good
cause’’ criteria for not seeking or enforcing a sup-
port order is eligible for the assured child support
benefit;
(B) the assured child support benefit shall be
paid promptly to the custodial parent at least once
a month and shall be—
(i) an amount determined by the State
which is—
(I) not less than $1,500 per year for
the first child, $1,000 per year for the sec-
ond child, and $500 per year for the third
and each subsequent child, and
(II) not more than $3,000 per year
for the first child and $1,000 per year for
the second and each subsequent child;
(ii) offset and reduced to the extent that
the custodial parent receives child support in a
month from the noncustodial parent;
(iii) indexed and adjusted for inflation; and
107
(iv) in the case of a family of children with
multiple noncustodial parents, calculated in the
same manner as if all such children were full
siblings, but any child support payment from a
particular noncustodial parent shall only be ap-
plied against the assured child support benefit
for the child or children of that particular
noncustodial parent;
(C) for purposes of determining the need of a
child or relative and the level of assistance, one-half
of the amount received as a child support payment
shall be disregarded from income until the total
amount of child support and Aid to Families With
Dependent Children benefit received under part A of
title IV of the Social Security Act equals the Federal
poverty level for a family of comparable size;
(D) in the event that the family as a whole be-
comes ineligible for Aid to Families With Dependent
Children under part A of the Social Security Act due
to consideration of assured child support benefits,
the continuing eligibility of the caretaker for Aid to
Families With Dependent Children under such title
shall be calculated without consideration of the as-
sured child support benefit; and
108
(E) in order to participate in the child support
assurance project, the child’s caretaker shall apply
for services of the State’s child support enforcement
program under part D of title IV of the Social Secu-
rity Act.
(2) For purposes of this section, the term ‘‘child’’
means an individual who is of such an age, disability, or
educational status as to be eligible for child support as
provided for by the law of the State in which such individ-
ual resides.
(3) For purposes of this section, a child support order
shall be deemed to have been ‘‘sought’’ where an individual
has applied for services from the State agency designated
by the State to carry out the requirements of part D of
title IV of the Social Security Act or has sought a child
support order through representation by private or public
counsel or pro se.
(e) CONSIDERATION
AND PRIORITY
OF APPLICA-
TIONS.—(1) The Secretary shall consider all applications
received from States desiring to conduct demonstration
projects under this section and shall approve not more
than 4 applications which appear likely to contribute sig-
nificantly to the achievement of the purpose of this sec-
tion. In selecting States to conduct demonstration projects
under this section, the Secretary shall—
109
(A) ensure that the applications selected rep-
resent a diversity of minimum benefits distributed
throughout 
the 
range 
specified 
in 
subsection
(d)(1)(B)(i);
(B) consider the geographic dispersion and vari-
ation in population of the applicants;
(C) give priority to States the applications of
which demonstrate—
(i) significant recent improvements in—
(I) establishing paternity and child
support awards,
(II) enforcement of child support
awards, and
(III) collection of child support pay-
ments;
(ii) a record of effective automation; and
(iii) that efforts will be made to link child
support systems with other service delivery sys-
tems;
(D) ensure that the proposed projects will be of
a size sufficient to obtain a meaningful measure of
the effects of child support assurance;
(E) give priority, first, to States intending to
operate a child support assurance project on a state-
wide basis, and, second, to States that are commit-
110
ted to phasing in an expansion of such project to the
entire State, if interim evaluations suggest such ex-
pansion is warranted; and
(F) ensure that, if feasible, the States selected
use a variety of approaches for child support guide-
lines.
(2) Of the States selected to participate in the dem-
onstration projects conducted under this section, the Sec-
retary shall require, if feasible—
(A) that at least 2 provide intensive integrated
social services for low-income participants in the
child support assurance project, for the purpose of
assisting such participants in improving their em-
ployment, housing, health, and educational status;
and
(B) that at least 2 have adopted the Uniform
Interstate Family Support Act.
(f) DURATION.—(1) During fiscal year 1995, the
Secretary shall develop criteria, select the States to par-
ticipate in the demonstration, and plan for the evaluation
required under subsection (h). The demonstration projects
conducted under this section shall commence on October
1, 1995, and shall be conducted for not less than 3 and
not more than 5 consecutive fiscal years, except that the
Secretary may terminate a project before the end of such
111
period if the Secretary determines that the State conduct-
ing the project is not in substantial compliance with the
terms of the application approved by the Secretary under
this section, and the Secretary may authorize the continu-
ation of a project if the Secretary determines that the
project has been successful.
(g) COST SAVINGS RECOVERY.—The Secretary shall
develop a methodology to identify any State cost savings
realized in connection with the implementation of a child
support assurance project conducted under this Act. Any
such savings realized as a result of the implementation
of a child support assurance project shall be utilized for
child support enforcement improvements or expansions
and improvements in the Aid to Families With Dependent
Children Program conducted under part A of title IV of
the Social Security Act within the participating State.
(h) EVALUATION AND REPORT TO CONGRESS.—(1)
The Secretary shall conduct an evaluation of the effective-
ness of the demonstration projects funded under this sec-
tion. The evaluation shall include an assessment of the ef-
fect of an assured benefit on—
(A) income from nongovernment sources and
the number of hours worked;
(B) the use and amount of government sup-
ports;
112
(C) the ability to accumulate resources;
(D) the well-being of the children, including
educational attainment and school behavior; and
(E) the State’s rates of establishing paternity
and support orders and of collecting support.
(2) Three and 5 years after commencement of the
demonstration projects, the Secretary shall submit an in-
terim and final report based on the evaluation to the Com-
mittee on Finance and the Committee on Labor and
Human Resources of the Senate, and the Committee on
Ways and Means and the Committee on Education and
Labor of the House of Representatives concerning the ef-
fectiveness of the child support assurance projects funded
under this section.
(i) STATE REPORTS.—The Secretary shall require
each State that conducts a demonstration project under
this section to annually report such information on the
project’s operation as the Secretary may require, except
that all such information shall be reported according to
a uniform format prescribed by the Secretary.
(j) RESTRICTIONS
ON MATCHING
AND USE
OF
FUNDS.—(1) A State conducting a demonstration project
under this section shall be required—
(A) except as provided in paragraph (2), to pro-
vide not less than 20 percent of the total amounts
113
expended in each calendar year of the project to pay
the costs associated with the project funded under
this section;
(B) to maintain its level of expenditures for
child support collection, enforcement, and payment
at the same level, or at a higher level, than such ex-
penditures were prior to such State’s participation in
a demonstration project provided by this section;
and
(C) to maintain the Aid to Families With De-
pendent Children benefits provided under part A of
title IV of the Social Security Act at the same level,
or at a higher level, as the level of such benefits on
the date of the enactment of this Act.
(2) A State participating in a demonstration project
under this section may provide no less than 10 percent
of the total amounts expended to pay the costs associated
with the project funded under this section in years after
the first year such project is conducted in a State if the
State meets the improvements specified in subsection
(b)(6)(B).
(k) COORDINATION WITH CERTAIN MEANS-TESTED
PROGRAMS.—For purposes of—
(1) the United States Housing Act of 1937;
(2) title V of the Housing Act of 1949;
114
(3) section 101 of the Housing and Urban De-
velopment Act of 1965;
(4) sections 221(d)(3), 235, and 236 of the Na-
tional Housing Act;
(5) the Food Stamp Act of 1977;
(6) title XIX of the Social Security Act; and
(7) child care assistance provided through part
A of title IV of the Social Security Act, the Child
Care and Development Block Grant, or title XX of
the Social Security Act,
any payment made to an individual within the demonstra-
tion project area for child support up to the amount which
an assured child support benefit would provide shall not
be treated as income and shall not be taken into account
in determining resources for the month of its receipt and
the following month.
(l) TREATMENT OF CHILD SUPPORT BENEFIT.—Any
assured child support benefit received by an individual
under this Act shall be considered child support for pur-
poses of the Internal Revenue Code of 1986.
(m) AUTHORIZATION OF APPROPRIATIONS.—There
are authorized to be appropriated such sums as may be
necessary in each of the fiscal years 1995, 1996, 1997,
1998, 1999, and 2000 to carry out the purposes of this
section.
115
SEC. 608. CHILDREN’S TRUST FUND.
(a) DESIGNATION OF CONTRIBUTIONS.—
(1) IN GENERAL.—Subchapter A of chapter 61
of the Internal Revenue Code of 1986 (relating to
returns and records) is amended by adding at the
end thereof the following new part:
‘‘PART IX—CONTRIBUTIONS TO CHILDREN’S
TRUST FUND
‘‘Sec. 6097. Amounts for Children’s Trust Fund.
‘‘SEC. 6097. AMOUNTS FOR CHILDREN’S TRUST FUND.
‘‘Each taxpayer may include with such taxpayer’s re-
turn of tax imposed by chapter 1 for any taxable year a
contribution by the taxpayer to the Children’s Trust
Fund.’’.
(2) CLERICAL
AMENDMENT.—The table of
parts for subchapter A of chapter 61 of the Internal
Revenue Code of 1986 is amended by adding at the
end thereof the following new item:
‘‘Part IX—Contributions for Children’s Trust Fund.’’.
(3) EFFECTIVE DATE.—The amendments made
by this subsection shall apply to taxable years begin-
ning after December 31, 1995.
(b) 
ESTABLISHMENT
OF
CHILDREN’S
TRUST
FUND.—
(1) IN GENERAL.—Subchapter A of chapter 98
of the Internal Revenue Code of 1986 (relating to
116
the trust fund code) is amended by adding at the
end thereof the following new section:
‘‘SEC. 9512. CHILDREN’S TRUST FUND.
‘‘(a) CREATION OF TRUST FUND.—There is estab-
lished in the Treasury of the United States a trust fund
to be known as the ‘Children’s Trust Fund’, consisting
of such amounts as may be appropriated or credited to
the Trust Fund as provided in this section or section
9602(b).
‘‘(b) TRANSFER TO CHILDREN’S TRUST FUND OF
AMOUNTS DESIGNATED.—There is hereby appropriated to
the Children’s Trust Fund amounts equivalent to the
amounts contributed to such Trust Fund under section
6097.
‘‘(c) EXPENDITURES FROM TRUST FUND.—
‘‘(1) IN GENERAL.—Amounts in the Children’s
Trust Fund shall be available as provided by appro-
priation Acts for making expenditures for programs
regarding child support and the specific mandates
described in part D of title IV of the Social Security
Act, especially such mandates established by the
amendments made by the Child Support Responsibil-
ity Act of 1994.
‘‘(2) ADMINISTRATIVE EXPENSES.—Amounts in
the Children’s Trust Fund shall be available to pay
117
the administrative expenses of the Department of
the Treasury directly allocable to—
‘‘(A) modifying the individual income tax
return forms to carry out section 6097,
‘‘(B) carrying out this chapter with respect
to such Trust Fund, and
‘‘(C) processing amounts received under
section 6097 and transferring such amounts to
such Trust Fund.’’.
(2) CLERICAL AMENDMENT.—The table of sec-
tions for subchapter A of chapter 98 of the Internal
Revenue Code of 1986 is amended by adding at the
end thereof the following new item:
‘‘Sec. 9512. Children’s Trust Fund.’’.
SEC. 609. STUDY OF REASONS FOR NONPAYMENT OF CHILD
SUPPORT; REPORT.
(a) STUDY.—The Comptroller General of the United
States shall—
(1) conduct a study of the causes of delin-
quency in the payment of child support, including
the nonpayment of child support by noncustodial
parents and failure of custodial parents to cooperate
in the collection of child support; and
(2) if a sufficient number of studies of this
matter are available, review the studies.
118
(b) REPORT TO THE CONGRESS.—Within 1 year after
the date of the enactment of this Act, the Comptroller
General shall submit to the Committee on Ways and
Means of the House of Representatives and the Committee
on Finance of the Senate, and to the Office of Child Sup-
port Enforcement, a report that contains the results of
the study required by subsection (a), and a consolidated
summary of the studies described in subsection (a)(2).
SEC. 610. STUDY OF EFFECTIVENESS OF ADMINISTRATIVE
PROCESSES; REPORT.
(a) STUDY.—The Comptroller General of the United
States shall conduct a study of the effectiveness of the
processing of child support and parentage cases in States
that use administrative processes as compared with States
that use judicial or quasi-judicial processes.
(b) REPORT TO THE CONGRESS.—Within 1 year after
the date of the enactment of this Act, the Comptroller
General shall submit to the Committee on Ways and
Means of the House of Representatives and the Committee
on Finance of the Senate a report that contains the results
of the study required by subsection (a).
SEC. 611. COMPENDIUM OF STATE CHILD SUPPORT STAT-
UTES.
The Office of Child Support Enforcement shall
produce and update the compendium entitled ‘‘A Guide
119
To State Child Support And Paternity Laws’’, published
by the National Conference of State Legislatures.
SEC. 612. ESTABLISHMENT OF PERMANENT CHILD SUP-
PORT ADVISORY COMMITTEE.
(a) IN GENERAL.—The Office of Child Support En-
forcement shall establish an advisory committee on child
support matters composed of Federal and State legisla-
tors, State child support officials, and representatives of
custodial and noncustodial parents.
(b) FUNCTIONS.—The advisory committee estab-
lished pursuant to subsection (a) shall—
(1) provide oversight of the implementation of
Federal laws and regulations affecting child support,
and the operation of Federal, State, and local child
support programs; and
(2) provide a forum through which child sup-
port problems experienced by parents, State agen-
cies, the courts, and the private bar may be identi-
fied, and from which recommendations on how to
solve such problems may be reported to the Sec-
retary of Health and Human Services and to the
Congress.
(c) PERMANENCY.—Section 14 of the Federal Advi-
sory Committee Act (5 U.S.C. App.) shall not apply to
120
the advisory committee established pursuant to subsection
(a) of this section.
TITLE VII—STATE ROLE
SEC. 701. ADVOCATION OF CHILDREN’S ECONOMIC SECU-
RITY.
Section 454 (42 U.S.C. 654), as amended by sections
211(e), 301(a), 425, 504, and 602 of this Act, is amend-
ed—
(1) by striking ‘‘and’’ at the end of paragraph
(28);
(2) by striking the period at the end of para-
graph (29) and inserting ‘‘; and’’; and
(3) by inserting after paragraph (29) the fol-
lowing:
‘‘(30) provide that the agency administering the
plan shall advocate to promote the greatest economic
security possible for children, consistent with the
ability of any individual who owes child support with
respect to the child to provide the support.’’.
SEC. 702. DUTIES OF STATE CHILD SUPPORT AGENCIES.
Section 454 (42 U.S.C. 654), as amended by sections
211(e), 301(a), 425, 504, 602, and 701 of this Act, is
amended—
(1) by striking ‘‘and’’ at the end of paragraph
(29);
122
‘‘(E) a statement that any custodial parent
who applies for services under the plan is eligi-
ble for such services, and that any application
fee for such services is deferred pending deter-
mination of the eligibility of the custodial par-
ent for aid under the State plan approved under
part A.’’.
SEC. 704. ADMINISTRATIVE PROCESS FOR CHANGE OF
PAYEE IN IV–D CASES.
Section 466(a) (42 U.S.C. 666(a)), as amended by
sections 104, 205, 206, 207, 209, 210, 212, 405, 406(a),
407, 408, 409, 410, 411, 414, 416, 417, 423, 424, 428,
429, and 502 of this Act, is amended by inserting after
paragraph (35) the following:
‘‘(36) Procedures under which only administra-
tive procedures are required to change the payee
under a child support order in a case under this
part, if a statement by an official of the State child
support enforcement agency is included in the court
or administrative file documenting the change.’’.
SEC. 705. FINANCIAL INCENTIVES.
(a) ONLY CHILD SUPPORT ENFORCEMENT FUNDS
SUBJECT TO REDUCTION FOR SUBSTANTIAL NONCOMPLI-
ANCE.—
123
(1) IN
GENERAL.—Subsection (h) of section
403 (42 U.S.C. 603(h)) is hereby transferred to sec-
tion 455 of the Social Security Act, redesignated as
subsection (f) of such section 455, and amended—
(A) in paragraph (1)—
(i) by striking ‘‘Act’’ and inserting
‘‘part’’;
(ii) by striking ‘‘part D’’ and inserting
‘‘this part’’; and
(iii) by striking ‘‘such part’’ and in-
serting ‘‘this part’’; and
(B) in paragraph (3), by striking ‘‘this
part’’ and inserting ‘‘part A’’.
(2) CONFORMING AMENDMENTS.—
(A) 
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(f)’’.
(B) 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(f)’’.
(b) PAYMENTS TO STATES INCREASED.—
(1) IN GENERAL.—Section 455(a) (42 U.S.C.
655(a)) is amended—
124
(A) in paragraph (1)—
(i) by striking ‘‘(a)(1)’’ and inserting
‘‘(a)’’; and
(ii) in subparagraph (A), by striking
‘‘the percent specified in paragraph (2)’’
and inserting ‘‘90 percent’’; and
(iii) in each of subparagraphs (B) and
(C), by striking ‘‘(rather than the percent-
age specified in subparagraph (A))’’;
(B) by striking paragraph (2); and
(C) by redesignating subparagraphs (A),
(B), and (C) of paragraph (1) as paragraphs
(1), (2), and (3), respectively.
(2) CONFORMING
AMENDMENTS.—Paragraphs
(1)(B), (2)(A), and (2)(B) of section 452(d) (42
U.S.C. 652(d)) are each amended by striking
‘‘455(a)(1)(B)’’ and inserting ‘‘455(a)(2)’’.
(c) REPEAL OF INCENTIVE PAYMENTS TO STATES.—
Section 458 (42 U.S.C. 658) is hereby repealed.
SEC. 706. AVOIDANCE OF CONFLICTS OF INTEREST.
Section 454 (42 U.S.C. 654), as amended by sections
211(e), 301(a), 425, 504, 602, 701, and 702 of this Act,
is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(30);
125
(2) by striking the period at the end of para-
graph (31) and inserting ‘‘; and’’; and
(3) by inserting after paragraph (31) the fol-
lowing:
‘‘(32) provide that the State may not seek to
modify a child support order on behalf of a party to
the order if the State has provided services under
the State plan to another party to the order.’’.
Æ
HR 4570 IH——2
HR 4570 IH——3
HR 4570 IH——4
HR 4570 IH——5
HR 4570 IH——6
HR 4570 IH——7
HR 4570 IH——8
HR 4570 IH——9