119
part nor (B) in excess of the amount described in sub-
section (g)(1)(C) or (i)(3)(B), whichever may be applicable
to the child involved, and, with respect to children to
whom subsection (i)(3)(B) applies, the State agency shall
be obligated to pay the lead agency for child care furnished
in a fiscal year only to the extent of appropriations avail-
able for such purpose for such fiscal year.
‘‘(3) SINGLE STATE AGENCY.—Nothing in this sub-
section shall be construed as precluding the designation
of the agency established or designated under section
402(a)(3) as the lead agency for purposes of the CCDBG
Act. No agreement shall be necessary in the case where
the same agency is designated under both the CCDBG Act
and this Act, but the agency shall, as lead agency, comply
with all the provisions of this subsection.’’.
SEC. 305. FUNDING FOR QUALITY IMPROVEMENT AND LI-
CENSING 
ACTIVITIES 
BENEFITTING 
CHIL-
DREN RECEIVING AFDC OR AT-RISK CHILD
CARE.
(a)(1) LICENSING AND MONITORING COSTS.—Sec-
tion 402(g)(3) of the Act is amended by adding at the
end thereof the following new subparagraph:
‘‘(C) In determining the amount expended
by a State for purposes of section 403(a)(3),
the Secretary shall allow the State to include an
120
amount, determined in accordance with a for-
mula prescribed by the Secretary, to reimburse
the State for expenditures in connection with li-
censing, monitoring, and similar activities with
respect to child care providers in the State. The
formula adopted by the Secretary shall reflect
either the number of children for whom child
care is reimbursed under section 403(a), the
number of child care providers in the State fur-
nishing such child care, or both, and any other
factors which the Secretary determines it would
be equitable to consider. The total payment to
all States pursuant to this subparagraph shall
not exceed $15,000,000 for any fiscal year.’’.
(2) The amendment made by paragraph (1) shall be
effective for fiscal years after 1995.
(b) SUPPLY AND QUALITY IMPROVEMENT ACTIVI-
TIES.—Section 402(i) of the Act is amended by redesig-
nating paragraph (9) (as previously redesignated) as para-
graph (10) and inserting after and below paragraph (8)
the following:
‘‘(9) Of the amount available to a State for any
fiscal year under section 403(n), 10 percent of such
amount may be paid by the Secretary with respect
to expenditures for those activities to improve the
121
quality of child care in the State described in section
458G of the Child Care and Development Block
Grant Act (referred to in this subsection as the
‘CCDBG’ Act) and to increase the availability in
low-income communities of child care appropriate for
infants and very young children in a variety of set-
tings. Either the State agency administering the
plan approved under this part or the lead agency
designated under the CCDBG Act may conduct such
activities (in which case the State agency shall pay
to the lead agency the amount provided by the Sec-
retary for this purpose pursuant to the preceding
sentence).’’.
SEC. 306. FUNDING OF CHILD CARE FOR FAMILIES AT RISK
OF WELFARE DEPENDENCY.
(a) FEDERAL FUNDING.—Section 403(n) is amend-
ed—
(1) in paragraph (1)(A), by striking out ‘‘the
Federal medical assistance percentage as defined in
section 1905(b))’’ and inserting in lieu therof ‘‘the
State’s enhanced Federal medical assistance percent-
age (as defined in subsection (m)(6))’’; and
(2) in paragraph (2), by amending subpara-
graph (B) to read as follows:
122
‘‘(B) The amount specified in this sub-
paragraph is—
‘‘(i) $300,000,000 for fiscal year
1995,
‘‘(ii) $500,000,000 for fiscal year
1996,
‘‘(iii) $600,000,000 for fiscal year
1997,
‘‘(iv) $700,000,000 for fiscal year
1998, and
‘‘(v) $1,000,000,000 for fiscal year
1999,
‘‘(vi) $1,050,000,000 for fiscal year
2000,
‘‘(vii) $1,100,000,000 for fiscal year
2001,
‘‘(viii) $1,150,000,000 for fiscal year
2002,
‘‘(ix) $1,200,000,000 for fiscal year
2003,
‘‘(x) $1,300,000,000 for fiscal year
2004, and
‘‘(xi) the product of $1,300,000,000
adjusted by the CPI as prescribed in sec-
tion 406(i) and the ratio of the child popu-
123
lation in the United States for the most re-
cent preceding fiscal year for which such
data are available, to such population for
the second most recent preceding fiscal
year,
reduced by 2 percent (or, in the case of fiscal
years after 1998, 1 percent) for carrying out
section 404 of the Work and Responsibility Act
of 1994.’’.
(b) REALLOTMENT
OF
AT-RISK
CHILD
CARE
FUNDS.—Section 403(n)(3)(C) of the Act (permitting a
one-year carryover by a State of unclaimed Federal funds
for at-risk child care) is amended to read as follows:
‘‘(C) If the amount specified in subpara-
graph (B) for any fiscal year exceeds (or if the
Secretary estimates that it will exceed) the total
amount paid (or estimated to be payable) under
paragraph (1) for such fiscal year, then the
Secretary shall provide additional payments to
States whose expenditures pursuant to section
402(i) for such year exceed their limitation on
Federal payment under paragraph (2). The
Secretary shall by regulation provide for the eq-
uitable reallotment of any amounts available in
the case where all States’ claims for a fiscal
124
year under this subparagraph exceed the
amount available for reallotment.’’.
SEC. 307. SUPPLEMENT TO INCOME DISREGARD.
(a) REQUIREMENT.—Section 402(g)(1)(B) of the Act
is amended by adding at the end thereof the following new
sentence: ‘‘If the State agency guarantees child care by
applying the income disregard provision in subsection
(a)(8)(A)(iii) in determining the amount of aid to be paid
for a month, the State agency shall offer the caretaker
relative the option of receiving care under another ar-
rangement pursuant to this subparagraph, or, alter-
natively, the State agency shall reimburse the caretaker
relative for expenditures for child care for such month in
an amount equal to the excess of such expenditures (or,
if less, the maximum amount that may be paid for the
type of child care involved, as determined under subpara-
graph (C)) over the amount that is disregarded under such
subsection.’’.
(b) NOTICE.—Section 402(g)(1)(A)(i) of the Act is
amended by striking out the period at the end and insert-
ing in lieu thereof a semicolon and adding after and below
clause (II) the following: ‘‘and if the State agency applies
the income disregard provision in subsection (a)(8)(A)(iii)
without reimbursement under subparagraph (B) for any
additional cost, it shall advise each such family that they
125
also have the option to have the State agency provide child
care under another arrangement pursuant to subpara-
graph (B).’’.
TITLE IV—PROVISIONS WITH MULTI-
PROGRAM APPLICABILITY
SEC. 401. PERFORMANCE STANDARDS.
Section 487 of the Act is amended to read as follows:
‘‘SEC. 487. PERFORMANCE STANDARDS.
‘‘(a) DEVELOPMENT
OF FACTORS TO BE MEAS-
URED.—In order to specify a set of outcome-based per-
formance measures to which the Secretary can thereafter
apply standards of achievement to define successful State
JOBS and WORK programs (with appropriate variations
in the factors to be measured, and the standards applied,
among the States and for programs directly administered
by Indian tribes or Alaska Native organizations), the Sec-
retary shall develop recommendations for factors to be
measured in assessing such programs, together with spe-
cific elements to be examined and the methodology for col-
lecting the necessary data. Factors to be recommended
shall include the percentage of a State’s AFDC caseload
subject to the time limits in section 417 who receive aid
for 24 cumulative months and may include factors such
as those considered under section 106 of the Job Training
Partnership Act, as well as—
126
‘‘(1) the increase in employment and level of
earnings of program participants after leaving the
JOBS and WORK programs,
‘‘(2) the retention of program participants for
significant periods of time in unsubsidized employ-
ment,
‘‘(3) the decrease in the rate of dependency on
welfare of participants’ families,
‘‘(4) the improvement in the long-term eco-
nomic well-being of families with children with a
family member who previously participated in one or
both such programs, and
‘‘(5) such other factors as the Secretary finds
appropriate.
The Secretary shall solicit views on the recommendations
from the Secretary of Labor, the Secretary of Education,
and other Federal, State, and local officials (and rep-
resentatives of associations of such officials) from both the
executive and the legislative branches of government, and
from other individuals and organizations with expertise in
the fields of social welfare, education and training pro-
grams for children and adults, employment-related pro-
grams and social and supportive services related to these
areas, as well as from community-based organizations and
former and current program participants. Based upon the
127
consultations and consideration of the views provided re-
garding the recommended factors, the Secretary shall, not
later than October 1, 1996, publish in the Federal Reg-
ister the factors to be measured in assessing States’ per-
formance in administering the programs established under
parts F and G.
‘‘(b) DEVELOPMENT
OF
PERFORMANCE
STAND-
ARDS.—(1) RECOMMENDATIONS.—In order to set stand-
ards of achievement to be applied to each of the factors
to be measured as defined in accordance with subsection
(a), the Secretary shall, not later than April 1, 1998, de-
velop recommended standards to be applied to each of the
factors. Views on these recommended standards shall be
solicited from officials, organizations, and individuals
broadly representative of the groups described in sub-
section (a). Based upon the consultations and consider-
ation of the comments received from these sources, the
Secretary shall, not later than October 1, 1998, publish
in the Federal Register the standards to be applied to the
measurement factors.
‘‘(2) REQUIREMENTS.—The performance standards
described in paragraph (1) shall include provisions govern-
ing cost-effective methods for obtaining such data as are
necessary to carry out this section which, notwithstanding
any other provision of law, may include access to earnings
128
records, State employment security records, records col-
lected under the Federal Insurance Contributions Act
(chapter 21 of the Internal Revenue Code of 1986), State
aid to families with dependent children records, and the
use of statistical sampling techniques, and similar records
or measures, with appropriate safeguards to protect the
confidentiality of the information obtained.
‘‘(c) INCENTIVES AND PENALTIES.—The Secretary
shall recommend and, not later than October 1, 1998,
issue regulations prescribing incentives for States meeting
or exceeding the performance standards adopted pursuant
to subsection (b), and penalties for States failing to meet
such standards. In developing such regulations, the Sec-
retary shall study and consider the relationship between
penalties and incentives as a means of achieving the pro-
posed standards. The Secretary will consider whether the
penalties and incentives set are sufficient to insure that
a State which incurs the costs necessary to obtain the de-
sired outcomes is financially better off than one that does
not. Such regulations shall also include provisions for
delay of any penalty when the Secretary finds it appro-
priate to afford a State sufficient time to develop and
(with the Secretary’s approval) implement a corrective ac-
tion plan which, if successful, will obviate the application
of a penalty, and provision for furnishing technical assist-
129
ance to any State in order to improve its program and
avoid the application of a penalty.
‘‘(d) The Secretary shall, from time to time, and in
consultation with officials, organizations, and individuals
broadly representative of the groups referred to in sub-
section (a), review and, if appropriate, propose modifica-
tions to the factors to be measured, the standards of per-
formance, or the incentives and penalties, and after oppor-
tunity for review and comment, modify any one or more
of such items.
‘‘(e) The Secretary shall on an annual basis make
public the level of performance achieved by each State as
compared to the applicable standard.
‘‘(f)(1) Each State with a plan approved under this
part shall collect and furnish such data as the Secretary
may require to assist in the development of the factors
to measure performance (pursuant to subsection (a)) and
the development of standards to be applied to those factors
(pursuant to subsection (b)).
‘‘(2) Each State with a plan approved under this part
shall establish methods to solicit, on a regular and ongoing
basis, the views of participants in the program under this
part, and in the WORK program under part G, and of
employers of participants from both programs, on the
quality and effectiveness of the services provided under the
130
program. Participants and employers may provide either
oral or written views, and the State should use a range
of methods to obtain such views, including written ques-
tionnaires and group interviews and discussions. The in-
formation obtained from participants and employers shall
be analyzed by the State and a summary of the informa-
tion, together with the State’s analysis, made available for
use in improving the administration of the JOBS and
WORK programs.
SEC. 402. AFDC QUALITY CONTROL SYSTEM AMENDMENTS.
(a) EXPANDED PURPOSE.—Section 408(a) of the Act
is amended to read as follows:
‘‘(a) IN GENERAL.—In order (1) to improve the accu-
racy of payments of aid to families with dependent chil-
dren, and wages under the WORK program under part
G, to assess the accuracy of State reported data relating
to its JOBS and WORK programs and to its implementa-
tion of the time limits established by section 417, (2) to
determine the number of individuals to whom the State
found applicable section 402(a)(19)(D) (by each of the
categories enumerated within such section) and the num-
ber of individuals with respect to whom an extension of
the time limit under section 417 was provided (by each
of the categories enumerated within section 417(e)), (3)
to determine whether participation standards under sec-
131
tion 403 have been met, (4) to assess the effectiveness
of the State’s program by applying the performance stand-
ards developed under section 487, and (5) to serve such
other purposes as the Secretary finds appropriate for a
performance measurement system, the Secretary shall es-
tablish and operate a quality control system to secure the
accurate data needed to measure performance, identify
areas in which corrective action is necessary, and deter-
mine the amount (if any) of the disallowance required to
be repaid to the Secretary because of erroneous payments
of aid made by the State, or its failure to meet such par-
ticipation or performance standards.’’.
(b) ADDITIONAL DATA REQUIRED TO BE SAM-
PLED.—Section 408(h) of the Act is amended—
(1) by redesignating paragraphs (2) through
(6) as paragraph (3) through (7), respectively,
(2) by adding after and below paragraph (1)
the following new paragraph:
‘‘(2) payments of aid that will be considered,
for purposes of this section, to be erroneous pay-
ments because of a State’s exceeding the limits spec-
ified in section 402(a)(19)(D) or 417(e), and the
State’s failure to achieve the participation rates
specified in section 403, or to meet the performance
standards developed pursuant to section 487, and
132
the additional data elements to be included in a
sample (and whether as part of the sample review
under subsection (b) or separately) in order to deter-
mine whether such participation rates have been
achieved, and the extent to which the State has met
such performance standards;’’; and
(3) by amending paragraph (3) (as redesig-
nated) by inserting before the semicolon ‘‘and mat-
ters relating to the size and selection of samples and
relating to the methodology for making statistically
valid estimates of the State’s compliance with the
limits referred to in paragraph (2) and its achieve-
ment of participation rates and performance (meas-
ured against such standards) achieved by the State’’.
(c) STATE STUDIES.—Section 408(h) is amended by
adding at the end thereof the following new sentence: ‘‘Ex-
penditures by a State to conduct studies approved by the
Secretary to test and improve its quality control system,
and adapt it to the full range of purposes described in
subsection (a) shall, notwithstanding any other provision
of law, be considered for purposes of section 403(a)(3) to
be necessary for the proper and efficient administration
of the State’s plan approved under this part.’’.
(d) CONFORMING AMENDMENT.—Section 408(b)(5)
of the Act is amended—
133
(1) in subparagraph (A), by striking out ‘‘sub-
section (h)(3)’’ and inserting in lieu thereof ‘‘sub-
section (h)(4)’’, and
(2) in subparagraph (B), by striking out ‘‘sub-
section (h)(4)’’ and inserting lieu thereof ‘‘subsection
(h)(5)’’.
(e) CONSULTATION.—The Secretary of Health and
Human Services shall consult with the State agencies ad-
ministering programs under parts A, F, and G of title IV
of the Act, and with others knowledgeable about design
and administration of quality control systems and per-
formance measurements systems, and thereafter, but not
later than April 1, 1995, report to the Congress and pub-
lish in the Federal Register the proposed rules necessary
to effectuate the amendments to section 408 of the Act
made by this section.
SEC. 403. NATIONAL WELFARE RECEIPT REGISTRY; STATE
INFORMATION SYSTEMS.
(a) FEDERAL RESPONSIBILITIES.—Part A of title IV
of the Act is amended by adding after section 410 the
following new section:
‘‘NATIONAL WELFARE RECEIPT REGISTRY
‘‘SEC. 411. (a) ESTABLISHMENT.—In order to assist
States in administering their State plans approved under
this part, part F, and part G, the Secretary shall establish
and maintain an automated registry, to be known as the
134
National Welfare Receipt Registry, containing information
reported by each State agency administering a plan ap-
proved under this part concerning individuals receiving (or
who have received) aid to families with dependent children
or wages under a State’s WORK program under part G.
‘‘(b) INFORMATION TO BE MAINTAINED.—There
shall be maintained in the Registry, at a minimum, the
following information with respect to each individual in
the family who has received aid to families with dependent
children:
‘‘(1) The individual’s name, date of birth, and
social security account number.
‘‘(2) The months for which aid was provided
(with respect to such individual), including months
in which no aid was paid with respect to such indi-
vidual because a sanction was being applied pursu-
ant to section 402(a)(19)(G), section 402(a)(26), or
section 496(f).
‘‘(3) Months in which section 402(a)(19)(D)
was applicable to the individual.
‘‘(4) Months during which an extension under
section 417 (e) was provided with respect to an indi-
vidual.
‘‘(5) Months in which an individual was reg-
istered with the State’s WORK program under part
135
G and months in which the individual was assigned
to a position under part G.
‘‘(6) Such other information as the Secretary
may determine would assist in the administration of
the programs involved, including the performance
measurement of one or more of such programs.
‘‘(c) USE OF INFORMATION.—(1) TO WHOM PRO-
VIDED.—The Secretary shall promptly respond to requests
by a State agency administering a plan approved under
this part for information with respect to one or more indi-
viduals, identified by name and social security number.
The Secretary shall furnish such information electroni-
cally, and if such an individual has previously received (or
is receiving) aid to families with dependent children, or
was registered under a program pursuant to part G, iden-
tify the State making payment of aid or administering the
program under part G for each month involved or indicate
that the requested information is not in the Registry.
‘‘(2) REGULATIONS.—The Secretary shall prescribe
rules pertaining to—
‘‘(A) the format in which and process by which
States must submit the information maintained
under subsection (b);
‘‘(B) the format in which and process by which
States must submit requests (and responses will be
136
furnished to such requests) for information under
this subsection;
‘‘(C) the safeguards that the State must adopt
to assure that requests are submitted, and responses
received, only by personnel authorized by the State
agency to perform these functions; and
‘‘(D) steps that the State must take to safe-
guard any information received from the Registry,
and assure that it will not be redisclosed except to
the extent permitted under section 402(a)(9) or
under this section.
The Secretary shall take into consideration in developing
and issuing rules under this subsection the varying levels
of capability among the States to monitor, provide, and
receive by electronic means the information to be main-
tained in the Registry, and shall allow in such rules a
State to adopt alternatives to the generally applicable re-
quirements if the State demonstrates that its alternative
will be effective in reporting, receiving and using the infor-
mation to be maintained in the Registry and the State
has in effect an advance planning document approved
under section 402(e).
‘‘(d) The Secretary shall not be liable to either a
State or an individual for inaccurate information provided
138
the administration of the unemployment compensa-
tion program under title III (or under a State law
with respect to which the Secretary of Labor cer-
tifies payment under such title), and
‘‘(4) for research purposes found by the Sec-
retary to be likely to contribute to achieving the pur-
poses of this part or part F or G, but without per-
sonal identifiers.
‘‘(f) There are authorized to be appropriated to estab-
lish the National Welfare Receipt Registry, $6,000,000 for
fiscal year 1995, and to operate the Registry, $4,000,000
for each of fiscal years 1996 through 1999.’’.
(b) STATE RESPONSIBILITIES.—Section 402(a) of
the Act is amended by adding after paragraph (28) the
following new paragraph:
‘‘(29) provide—
‘‘(A) that information will be reported to
the National Welfare Receipt Registry, at such
times, in such format and by such process as
the Secretary shall prescribe pursuant to sec-
tion 411;
‘‘(B) that the State agency will request
from such Registry, and from the other Reg-
istries maintained as part of the National Wel-
fare Reform Information Clearinghouse estab-
139
lished pursuant to section 453A, in such man-
ner as the Secretary may prescribe, and will use
all information that would facilitate the proper
and efficient operation of the State’s programs
under this part and parts F and G, and
‘‘(C) that the State agency will cooperate
with any other State agency administering or
supervising the administration of a plan ap-
proved under this part in order to resolve any
disagreement between an individual seeking aid
under such a plan (or seeking to participate in
a program under part G) and the State about
the correctness of information it reported to the
Registry and report to the Registry any correc-
tions to be made in the data contained in the
Registry;’’.
(c) STATE AUTOMATED INFORMATION SYSTEM.—
Section 402(a)(30) of the Act is amended to read as fol-
lows:
‘‘(30)(A) provide for an automated system
which manages, monitors, and reports the informa-
tion in paragraph (29) efficiently and economically,
and for security against unauthorized access to, or
use of, the data in such system; and
140
‘‘(B) at the option of the State, provide for the
establishment and operation, in accordance with an
(initial and annually updated) advance planning doc-
ument approved under subsection (e), of a statewide
automated information system to assist in the ad-
ministration of the State plan approved under this
part through automated procedures and processes in
any one or more of the following areas—
‘‘(i) to assist in performing intake and re-
ferral functions;
‘‘(ii) to assist in providing the child care
services required under subsection (g)(1), and
available under subsection (i), and coordinating
the provision of such services with those pro-
vided in the State under the Child Care and
Development Block Grant Act, in an efficient
manner that eliminates (or at least minimizes)
the disruption of service to children and fami-
lies and assists the State in monitoring the
quality, cost, and delivery of such services; or
‘‘(iii) to assist in the administration of the
State’s plan approved under part F, including
monitoring the delivery of employment and
training services and related support services,
and to manage the information necessary to ad-
141
minister and assess its programs under parts F
and G;
and to provide for security against unauthorized access to,
or use of, the data in such system and, if the State elects
to implement any such automated system, may also de-
velop and implement a system (or, if more cost-effective,
enhance an existing system) for determining eligibility for
any payment amount of aid under this part;’’.
(d) DEVELOPMENT OF MODEL AUTOMATED INFOR-
MATION MANAGEMENT SYSTEMS.—Section 413 of the Act
(including its heading) is amended to read as follows:
‘‘MODEL AUTOMATED INFORMATION MANAGEMENT
SYSTEMS
‘‘SEC. 413. (a)(1) The Secretary shall, in partnership
with States, design and develop model automated support
and case management systems to assist States in the oper-
ation, managing, tracking, and reporting in each of the
program areas described in section 402(a)(30)(A) and
clauses (i), (ii), and (iii) of section 402(a)(30)(B), and
thereafter provide necessary technical assistance to States
choosing to adopt such model.
‘‘(2) Two or more States may determine to collabo-
rate in developing model automated support and case
management systems to assist them in operating, manag-
ing, tracking, and reporting in each of the program areas
described in section 402(a)(30) and, in such case, the Sec-
142
retary shall provide all appropriate technical assistance,
and otherwise cooperate with the States’ collaboration to
develop systems that meet all the requirements of this
part.
‘‘(b) The model system developed by the Secretary
under subsection (a)(1), or the system developed collabo-
ratively by States under subsection (a)(2), must meet the
following criteria—
‘‘(1) with respect to payment of aid under the
State’s plan approved under this part, the system
must be capable of assisting in performing the in-
take and Federal function;
‘‘(2) with respect to the State’s child care pro-
grams under this part, as well as under the CCDBG
Act, the system must be capable of assisting in—
‘‘(A) identifying and establishing the eligi-
bility of families with children in need of child
care, and determining the appropriate program
under which to pay for such care;
‘‘(B) determining the continuing eligibility
of such families for such care, and planning for
and monitoring services provided to such fami-
lies;
143
‘‘(C) processing payments and other finan-
cial data needed for the management of the
child care programs, and
‘‘(D) producing necessary management re-
ports for the efficient and effective administra-
tion of the child care programs, including the
generating of required financial and statistical
reports;
‘‘(3) with respect to the State’s JOBS and
WORK programs under parts F and G respectively,
the system must be capable of assisting in—
‘‘(A) assessing a participant’s service needs
in relation to stated goals,
‘‘(B) developing an appropriate employ-
ability plan, and
‘‘(C) monitoring and recording the individ-
ual’s attendance at or participation in all re-
quired program activities.
In the case of each of the State’s systems described
in paragraphs (1), (2), and (3), the system must
also be capable of exchanging data electronically
with related Federal electronic data systems and
other such systems of the State, and providing such
other information necessary to assess the State’s
144
program performance against the standards estab-
lished by the Secretary under section 487.
‘‘(c) There are authorized to be appropriated to carry
out subsection (a), $7,500,000 for each of fiscal years
1995 and 1996.
‘‘(d)(1) In addition to the technical assistance re-
quired in connection with the model systems described in
subsection (a)(1), the Secretary shall provide for such
training, and furnish such technical assistance as may be
appropriate to enable States to develop and implement
automated management systems as promptly and in as
cost-effective a manner as possible.
‘‘(2) There are authorized to be appropriated
$1,000,000 for each fiscal years 1995 through 1999 to
carry out this subsection.’’.
(e) ENHANCED MATCHING.—Section 403(a) of the
Act is amended—
(1) by redesignating paragraph (3) as para-
graph (3)(A) and striking out ‘‘and’’ at the end
thereof, and
(2) by adding after and below such paragraph
the following:
‘‘(B) if the Secretary determines that the
modification of a State’s system that meets the
requirements of section 402(a)(30)(A) will be
145
cost-effective, or that a State’s automated man-
agement information system uses any one or
more of the Secretary’s models developed under
section 413(a)(1), or is based on a State col-
laboration under section 413(a)(2), Federal
payments with respect to such systems shall
equal 80 percent (or, if greater, the State’s en-
hanced Federal medical assistance percentage,
as defined in subsection (m)(6)) of a State’s ex-
penditures under its approved advance planning
document for the cost of developing and imple-
menting any such system collaborative project;
and
‘‘(C) notwithstanding any other provision
of this section, the total amount payable by the
Secretary with respect to expenditures, (during
the five-year period) to which subparagraph (B)
applies shall not exceed $800,000,000 to be dis-
tributed among the States, and to make avail-
able at such time or times over the five-year pe-
riod, as is provided in regulations issued by the
Secretary, taking into account the relative size
of State caseloads and the levels of automation
needed to meet the requirements of this title,
and payments under subparagraph (B) shall be
146
made at such times and in such manner as pro-
vided in subsection (b) and the advance plan-
ning 
document 
approved 
under 
section
402(e).’’, and
(3) by striking out ‘‘section 403(a)(3)’’ in sub-
paragraph (C) of section 402(g)(3) of this Act, as
added by section 305(a)(1) of this Act, and inserting
in lieu thereof ‘‘section 403(a)(3)(A)’’.
(f) REVISION OF ADVANCE PLANNING DOCUMENT
REQUIREMENT.—Section 402(e) of the Act is amended to
read as follows:
‘‘(e)(1) The Secretary shall not approve the Advance
Data Planning document referred to in subsection (a)(30),
unless such document, when implemented, will economi-
cally, efficiently, and effectively carry out the objectives
of the automated, statewide, management information sys-
tems referred to in such subsection, and such document
provides a plan to address the State’s approach, schedule,
needed resources, and cost-benefit of the project.
‘‘(2) The Secretary shall, on a continuing basis, re-
view, access, and inspect the planning, design, and oper-
ation of the statewide management information systems
approved under subsection 403(a)(3)(B), to determine
whether, and to what extent, such systems meet and will
continue to meet requirements imposed under this part.’’.
147
SEC. 404. RESEARCH AND EVALUATION; TECHNICAL AS-
SISTANCE; DEMONSTRATION PROJECTS.
(a) FUNDING.—There shall be available to the Sec-
retary of Health and Human Services (hereafter in this
section referred to as the ‘‘Secretary’’) for carrying out
the projects and other activities specified in this section,
and other such activities related to the provisions of this
Act, in a fiscal year an amount equal to 2 percent (or,
in the case of fiscal years after 1998, 1 percent) of the
sum of the amounts specified in subsections (k)(3), (l)(3),
and (n)(2)(B) of section 403 of the Social Security Act
for such fiscal year.
(b) RESEARCH AND EVALUATION.—In addition to
any other research and evaluation found appropriate by
the Secretary pertaining to the new programs and amend-
ments to existing programs added to the Social Security
Act by the provisions of this Act, the Secretary shall, in
consultation with the Secretary of Labor and the Sec-
retary of Education conduct, in accordance with scientif-
ically-acceptable methodology, the following studies of the
time-limited program of assistance together with training
and preparation for employment, followed by a program
of required employment or employment-related activities:
(1) A two-phase implementation study of—
(A) the initial steps taken by States and
political subdivisions to implement the new pro-
148
grams and requirements established by the
amendments made by this Act, as well as the
obstacles faced, institutional arrangements en-
tered into, and recommendations of such States
and political subdivisions based on their experi-
ences, and thereafter
(B) the experiences of States and localities
after the new programs and requirements have
been substantially implemented, including a
study of the program design, services provided,
funding levels, participation rates, and rec-
ommendations of the administering agencies,
and a review of the impact of these new pro-
grams and requirements on the State and local
administration of the programs, including man-
agement systems, staffing structures, and the
culture of the welfare programs.
(2) An evaluation in a variety of States and lo-
calities, using random assignment of individuals to
treatment and control groups, and other appropriate
rigorous methods, to examine the effectiveness of
time-limited 
assistance 
in 
helping 
participants
achieve self-sufficiency, and the corresponding effect
on unemployment rates, reduction of welfare depend-
ency and teen pregnancy, the effects on income lev-
149
els, family structure, and children’s well-being
among participant groups.
(3) Together with the Secretary of Labor, a
comprehensive national study after the WORK pro-
gram (under part G of title IV of the Act) has been
in effect for 2 years to measure the program’s suc-
cess in assisting participants to obtain unsubsidized
employment, and to evaluate skill levels and barriers
to employment in the case of individuals who have
not, after participating in such program for 2 years,
been able to obtain unsubsidized employment.
(c) TECHNICAL ASSISTANCE.—In addition to any
other specific authorization in the Social Security Act for
technical assistance, the Secretary is authorized to offer
a broad range of technical assistance to States (including
Indian tribes and Alaska Native organizations) and terri-
tories, including training, consultations, and fostering the
exchange of information among States and others about
practices, strategies, and techniques that are proving ef-
fective.
(d) PLACEMENT DEMONSTRATION PROJECTS.—The
Secretary is authorized to approve up to 10 demonstra-
tions of innovative techniques to increase the number of
placements of participants in the JOBS program (under
part F of title IV of the Social Security Act) in positions
150
of unsubsidized employment with significant retention
rates. No more than 5 such demonstrations shall test the
use by the State of a private organization, pursuant to
a contractual arrangement under which the organization
will place JOBS program participants in employment, and
no more than 5 such demonstrations shall involve the use
of placement bonuses payable to State or local agency em-
ployees who effectuate successful placements. All the
projects shall specify performance standards (based on
placement and retention rates) to measure successful per-
formance, and, in the case of projects involving the use
of private agencies, shall also specify the services that
must be made available to clients, both before and after
the placement, and indicate whether the organization will
also serve participants in the State’s WORK program
(under part G of title IV of the Social Security Act.)
(e) 
WORK-FOR-WAGES
DEMONSTRATION
PRO-
JECTS.—The Secretary is authorized to approve up to 5
local demonstration projects to test the development, im-
plementation, and effectiveness of WORK programs con-
ducted outside the context of the State’s AFDC program.
Any project approved under this subsection must include
the following elements:
(1) The State agency administering the State’s
AFDC program (under part A of title IV of the So-
151
cial Security Act) must close the case when an indi-
vidual to whom section 417 applies (as added by sec-
tion 104 of this Act) reaches the time limit specified
in such section.
(2) Each individual involved in the demonstra-
tion must be advised of the procedures that must be
followed to apply for the WORK-for-Wages Project,
and may not be denied an opportunity to participate
if such individual would be eligible to participate in
the State’s WORK program under part G of such
title.
(3) Each individual will be afforded the oppor-
tunity to earn wages in a position of employment
and WORK stipends if necessary to provide at least
the income level of the State’s AFDC program (after
application of the $120 per month earned income
disregard for work expenses) in the case of a simi-
larly situated family (and States conducting projects
will be encouraged to standardize, to the extent con-
sistent with the preceding provisions of this para-
graph, the amount of the stipends), but no payment
of either wages or the stipend will occur unless the
individual has worked or participated in an alter-
native project-specified activity such as job search,
152
interim community service, or other activity designed
by the project.
(4) Those elements of the WORK program
under part G of title IV of the Act which the Sec-
retary determines are essential to achieve its objec-
tives, while protecting the interests of participants in
the program and others involved in or affected by
the project, will be retained and applied in the
project.
(f) WORK SUPPORT AGENCY DEMONSTRATIONS.—
The Secretary is authorized, in consultation with the Sec-
retary of Labor, the Secretary of Agriculture, and the Sec-
retary of the Treasury, to approve demonstration projects
in up to 5 States, under which the State establishes a
Work Support Agency to provide a broad and coordinated
array of services and assistance to individuals who are
former recipients of aid to families with dependent chil-
dren to assist them in retaining unsubsidized employment.
Services may include assistance in obtaining other benefits
or payments for which the individual is still eligible, assist-
ance in dealing with short-term family problems which
could otherwise jeopardize continuation of the employment
relationship, short-term or one-time financial aid to meet
unusual employment-related needs and any other aid or
153
services that support the individual’s ability to retain or,
where necessary, secure employment.
(g) DEMONSTRATION PROJECTS FOR NONCUSTODIAL
PARENTS.—In order to encourage the development of in-
novative parenting programs for noncustodial parents that
build upon existing programs for high-risk families, such
as the Head Start program, the Healthy Start program,
the Even Start program, and the Family Preservation and
Support program, the Secretary is authorized to make
grants to States, Indian tribes and Alaska Native organi-
zations, or community-based organizations to conduct
demonstration projects designed to improve the parenting
skills of noncustodial parents with particular emphasis on
matters such as the importance of parental involvement
and economic security in the healthy development of chil-
dren. The applicant shall describe the services to be pro-
vided, and the way in which project services will be coordi-
nated with one or more of the programs or initiates re-
ferred to in the preceding sentence.
(h) The Secretary shall, with respect to all dem-
onstrations authorized under this section, prescribe—
(1) the minimum length of such projects in
order to assure the value of the project,
154
(2) the assignment techniques and other re-
quirements for the methodologies so that the results
will be scientifically acceptable,
(3) the required financial contribution by the
project applicant,
(4) types of expenditures that may be included
under the project,
(5) the timing and nature of required reports
and the procedures to be followed in conducting the
evaluation and review of project results, and
(6) any other rules that the Secretary finds ap-
propriate to assure the integrity of the demonstra-
tion, and to protect the rights and interests of pro-
gram participants who are assigned to the dem-
onstration.
SEC. 405. OFFSETS TO MANDATORY SPENDING FROM RE-
DUCED FRAUD, WASTE, AND ABUSE.
(a) CERTIFICATIONS.—In order to assure achieve-
ment of the reductions in mandatory spending assumed
in the cost estimates accompanying this Act, beginning in
fiscal year 1998, and each of the five succeeding fiscal
years is—
(1) the Secretary of Health and Human Serv-
ices shall certify to the Director of the Office of
Management and Budget that each of the systems
155
of data bases included in the National Welfare Re-
form Information Clearinghouse established by Sec-
tion 453A of the Social Security Act, (as added by
section 625 of this Act) are both receiving data from
and providing data to State and Federal agencies,
and otherwise fully complying with all requirements
imposed by or pursuant to the provisions of the So-
cial Security Act establishing, and requiring use of
the components, of the Clearinghouse, and
(2) the Director of the Office of Management
and Budget shall determine whether, and if so cer-
tify that, all such data were used fully and by the
Federal agencies to which it was supplied in order
to reduce fraud, waste, and abuse in the programs
it administers and in compliance with the require-
ments imposed by or pursuant to the Social Security
Act and subsection (d).
(b) ALTERNATIVE
REDUCTIONS
IN
MANDATORY
SPENDING.—If the Director of the Office of Management
and Budget, after consultation with the Secretary of
Health and Human Services, certifies, prior to the close
of a fiscal year, as provided in subsection (a)(2), that, not-
withstanding the full use of data as described in sub-
section (a) and States’ implementation of applicable re-
quirements of the Social Security Act, mandatory spend-
156
ing was not reduced (when compared to the levels esti-
mated had the Clearinghouse not been established and
used) by the amount projected in the cost estimates, then
in the succeeding fiscal year the following reductions in
spending shall occur, in the sequence stated, to the extent
necessary to reduce mandatory spending by the difference
between the amount that it was estimated would be saved
(or avoided) in the year (in which the certifications are
made) and the amount certified by the Director as having
been saved (or avoided)—
(1) the amount made available to the Secretary
of Health and Human Services under section 404(a)
of this Act for research, demonstrations, and tech-
nical assistance, and the amount available under sec-
tion 452(j) of the Social Security Act (as added by
section 616 of this Act) for technical assistance to
States with respect to child support enforcement
programs (each such amount being reduced propor-
tionately); and, if necessary,
(2) amounts otherwise payable under section
403(a)(3) of the Social Security Act (as amended by
this Act) to States which have not fully implemented
all the requirements imposed by or pursuant to the
Social Security Act for full use of the data available
from any part of the National Welfare Reform Infor-
157
mation Clearinghouse shall be reduced by 3 percent
(or such lesser amount as is necessary to achieve the
necessary reductions in mandatory spending).
(c) RELATED AMENDMENTS.—Section 1137(a)(2) of
the Act is amended by striking out ‘‘such Code,’’ and in-
serting in lieu thereof ‘‘such Code, and information avail-
able from any Registry maintained under the National
Welfare Reform Information Clearinghouse established
under section 453(A) (or, prior to the full establishment
and operation of the Director of New Hires, from systems
of similar information maintained by any other State,
where cost-effective),’’.
(d) The Social Security Administration and the Sec-
retary of the Treasury shall each request and fully use
all information in the registries maintained under the Na-
tional Welfare Reform Information Clearinghouse estab-
lished under section 453A of the Social Security Act to
the extent that such information may be useful in carrying
out their statutory responsibilities and reducing fraud,
waste, and abuse.
TITLE V—PREVENTION OF DEPENDENCY
SEC. 501. SUPERVISED LIVING ARRANGEMENTS FOR MI-
NORS.
(a) Section 402(a)(43) of the Act is amended by
striking out ‘‘at the option of the State,’’.
158
(b) Such section is further amended in subparagraph
(A)(i) by striking out ‘‘, or reside in a foster home’’ and
all that follows down to the semicolon.
(c) Such section is further amended—
(1) by amending so much of subparagraph (B)
as precedes clause (i) to read ‘‘(B) in the case
where—’’,
(2) by striking out the semicolon at the end of
each numbered clause in such subparagraph and in-
serting in lieu thereof a comma, and
(3) by adding after and below clause (v) of such
subparagraph the following: ‘‘subparagraph (A) shall
not be applicable, but the State agency shall assist
the individual in locating an appropriate adult-super-
vised supportive living arrangement taking into con-
sideration the needs and concerns of the minor, (or
may determine that the individual’s current living
arrangement is appropriate) and thereafter shall re-
quire that the individual (and child, if any) reside in
such living arrangement as a condition of the contin-
ued receipt of aid under the plan (or in an alter-
native 
appropriate 
arrangement, 
should 
cir-
cumstances change and the current arrangement
cease to be appropriate) or, if the State agency is
unable, after making diligent efforts, to locate any
159
such appropriate living arrangement, it shall provide
for comprehensive case management, monitoring,
and other social services consistent with the best in-
terests of the individual (and child) while living inde-
pendently;’’.
SEC. 502. STATE OPTION TO LIMIT BENEFIT INCREASES
FOR ADDITIONAL FAMILY MEMBERS.
(a) STATE OPTION.—Section 402(a) of the Act is
amended—
(1) by striking out ‘‘and’’ after paragraph (44);
(2) by striking out the period after paragraph
(45) and inserting in lieu thereof ‘‘; and’’; and
(3) by adding at the end thereof the following
new paragraph:
‘‘(46) at the option of the State, provide that—
‘‘(A) subject to subparagraphs (B), (C),
and (D), the amount of aid to families with de-
pendent children paid to a family under the
plan will not be increased by reason of the birth
of a child to an individual included in such fam-
ily for purposes of making the determination
under paragraph (7) and applying paragraph
(8), or will be increased less than the amount
that would be paid with respect to such child if
such child had been a member of the family
160
when the family first applied for aid, (but any
such child will be considered to be a recipient
of aid for all other purposes, including title
XIX) if—
‘‘(i) in the case where the individual is
a custodial parent of a dependent child,
the child was conceived in a month for
which the individual received aid under the
plan, or
‘‘(ii) in the case where the individual
is a dependent child, the individual is the
parent of another child who is a member of
the same family and whose needs are in-
cluded for purposes of making such deter-
mination;
‘‘(B) services will be offered under para-
graph (15) to all appropriate family members;
‘‘(C) there will be disregarded, in making
the determination under paragraph (7) and be-
fore applying the provisions of paragraph (8),
an amount of income equal to any increase in
aid that would have been paid but for subpara-
graph (A) that is derived from child support
collected with respect to the child referred to in
paragraph (A), earned income of a member of
161
the family referred to in such subparagraph, or
from any other source specified in the plan that
the Secretary may approve as consistent with
the objectives of this paragraph; and
‘‘(D) the provisions of subparagraph (A)
will not be applied in case of rape or in any
other cases that the State agency finds would
violate standards of fairness and good con-
science.’’.
(b) MATCHING
FOR
RELATED
ADMINISTRATIVE
COSTS.—Section 403(a)(3) of the Act is amended by
striking out the semicolon and inserting in lieu thereof ‘‘or
counseling or referral services (but no other types of fam-
ily planning services) furnished pursuant to section
402(a)(15);’’.
SEC. 503. CASE MANAGEMENT FOR PARENTS UNDER AGE
20.
Section 482(b) of the Act, as amended by section
102(2) of this Act, is further amended by—
(1) redesignating paragraph (4) as paragraph
(4)(A),
(2) striking out ‘‘The State agency’’ in such
paragraph (4)(A) and inserting in lieu thereof ‘‘Ex-
cept as provided in subparagraph (B), the State
agency’’, and
162
(3) by inserting after and below paragraph
(4)(A) the following:
‘‘(B) The State agency shall—
‘‘(i) assign a case manager to each
custodial parent receiving aid under part A
who is under age 20;
‘‘(ii) provide that case managers will
have the training necessary (taking into
consideration the recommendations of ap-
propriate professional organizations) to en-
able them to carry out their responsibilities
and will be assigned a caseload the size of
which permits effective case management;
and
‘‘(iii) provide that the case manager
will be responsible for—
‘‘(I) assisting such parent in ob-
taining appropriate services, including
at a minimum, parenting education,
family planning services, education
and vocational training, and child care
and transportation services,
‘‘(II) making the determinations
required to implement the provision of
paragraph (43),
163
‘‘(III) monitoring such parent’s
compliance with all program require-
ments, and, where appropriate, pro-
viding incentives and applying sanc-
tions, and
‘‘(IV) providing general guidance,
encouragement and support to assist
such parent in his or her role as a
parent and in achieving self-suffi-
ciency.’’.
SEC. 504. STATE OPTION TO PROVIDE ADDITIONAL INCEN-
TIVES AND PENALTIES TO ENCOURAGE TEEN
PARENTS TO COMPLETE HIGH SCHOOL AND
PARTICIPATE IN PARENTING ACTIVITIES.
(a) STATE PLAN.—Section 402(a)(19)(E) of the Act
(as amended by section 101 of this Act) is amended by
adding ‘‘and’’ after clause (ii) and adding after and below
clause (ii) the following new clause:
‘‘(iii) at the option of the State, some
or all custodial parents who are under age
20 (and pregnant women under age 20)
who are receiving aid under this part will
be required to participate in a program of
monetary incentives and penalties, consist-
ent with subsection (k);’’.
164
(b) ELEMENTS OF PROGRAM.—Section 402 of the
Act is amended by adding at the end thereof the following
new subsection:
‘‘(k)(1) If a State chooses to conduct a program of
monetary incentives and penalties to encourage custodial
parents (and pregnant women) who are under age 20 to
complete their high school (or equivalent) education, and
participate in parenting activities, the State shall amend
its State plan—
‘‘(A) to specify the one or more political sub-
divisions in which the State will conduct the pro-
gram (or other clearly defined geographic area or
areas), and
‘‘(B) to describe its program in detail.
‘‘(2) A program under this subsection—
‘‘(A) may, at the option of the State, include all
such parents who are under age 21;
‘‘(B) may, at the option of the State, require
full-time participation in secondary school or equiva-
lent educational activities, or participation in a
course or program leading to a skills certificate
found appropriate by the State agency or parenting
education activities (or any combination of such ac-
tivities and secondary education);
165
‘‘(C) shall require that the case manager as-
signed to the custodial parent pursuant to section
482(b)(3) will review the needs of such parent and
will assure that, either in the initial development or
revision of the parent’s employability plan, there will
be included a description of the services that will be
provided to the parent and the way in which the
case manager and service providers will coordinate
with the educational or skills training activities in
which the custodial parent is participating;
‘‘(D) shall provide monetary incentives for more
than minimally acceptable performance of required
educational activities; and
‘‘(E) shall provide penalties (which may be
those required by subsection (a)(19)(G) or, with the
approval of the Secretary, other monetary penalties
that the State finds will better achieve the objectives
of the program.
‘‘(3) When a monetary incentive is payable because
of the more than minimally acceptable performance of re-
quired educational activities by a custodial parent, the in-
centive shall be paid directly to such parent, regardless
of whether the State agency makes payment of aid under
the State plan directly to such parent.
166
‘‘(4)(A) For purposes of this part, monetary incen-
tives paid under this subsection shall be considered aid
to families with dependent children.
‘‘(B) For purposes of any other Federal or federally-
assisted program based on need, no monetary incentive
paid under this subsection shall be considered income in
determining a family’s eligibility for or amount of benefits
under such program, and if aid is reduced by reason of
a penalty under this subsection, such other program shall
treat the family involved as if no such penalty has been
applied.
‘‘(5) The State agency shall from time to time provide
such information as the Secretary may request, and other-
wise cooperate with the Secretary, in order to permit eval-
uation of the effectiveness on a broad basis of the State’s
program conducted under this subsection.’’.
SEC. 505. ADOLESCENT PREGNANCY PREVENTION GRANTS.
(a) ADOLESCENT PREGNANCY PREVENTION.—Title
XX (42 U.S.C. 1397–1397F) is amended by adding at
the end the following:
‘‘SEC. 
2008. 
ADOLESCENT 
PREGNANCY 
PREVENTION
GRANTS.
‘‘(a) PURPOSE.—The purpose of this section is to en-
courage and provide financial assistance for the develop-
ment of intensive and sustained school-linked and school-
167
based pregnancy prevention programs for adolescents and
their families in areas of high poverty or high unmarried
adolescent birth rates that build upon other Federal,
State, and local pregnancy prevention and youth develop-
ment programs.
‘‘(b) GENERAL AUTHORITY.—Notwithstanding sec-
tion 2005(a)(6), the Secretary of Health and Human
Services, the Secretary of Education, and the Chief Execu-
tive Officer of the Corporation for National and Commu-
nity Service (hereinafter referred to as the ‘responsible
Federal officials’), in consultation with other relevant Fed-
eral agencies, shall jointly make grants to eligible entities,
to carry out programs in accordance with this section.
‘‘(c) FEDERAL ADMINISTRATION.—
‘‘(1) Notwithstanding the Department of Edu-
cation Organization Act (20 U.S.C. 3401 et seq.)
and the General Education Provisions Act (20
U.S.C. 1221 et seq.), the responsible Federal offi-
cials shall jointly provide for the administration of
this section, and shall jointly issue whatever regula-
tions, procedures, and guidelines, the responsible
Federal officials consider necessary and appropriate
to administer and enforce the provisions of this sec-
tion.
168
‘‘(2) The responsible Federal officials may enter
into agreements with any other Federal entity with
expertise in youth development activities to admin-
ister the program under this section and may pro-
vide such entity with appropriate reimbursement.
‘‘(d) FUNDING.—
‘‘(1) IN GENERAL.—To achieve the purposes of
this section, the responsible Federal officials shall
make grants to eligible entities under subsection (b)
and conduct activities under subsections (m) and (n)
so that in the aggregate the expenditures for such
grants and activities do not exceed $20,000,000 for
fiscal year 1995, $40,000,000 for fiscal year 1996,
$60,000,000 for fiscal year 1997, $80,000,000 for
fiscal year 1998, and $100,000,000 for fiscal year
1999 and each subsequent fiscal year.
‘‘(2) PAYMENTS TO GRANTEES.—Upon approval
by the responsible Federal officials, each grant appli-
cant shall be entitled to payment of at least $50,000
and not more than $400,000 for each fiscal year
based on an assessment by the responsible Federal
officials of the scope and quality of the proposed
program and the number of adolescents to be served
by the program. Payments to a grantee for any fis-
cal year shall be available for expenditure by such
169
grantee in such fiscal year or the succeeding fiscal
year.
‘‘(3) RESERVATION FOR EVALUATION, TRAIN-
ING, 
TECHNICAL
ASSISTANCE, 
AND
NATIONAL
CLEARINGHOUSE.—The responsible Federal officials
shall reserve, with respect to each fiscal year, up to
10 percent of the aggregate amount described in
paragraph (1) for expenditure by the responsible
Federal officials for evaluation, training, and tech-
nical assistance related to the programs under this
section, and for the establishment and operation of
a National Clearinghouse on Adolescent Pregnancy
Prevention Programs under subsection (n).
‘‘(4) EXCESS AMOUNT.—If in any fiscal year
the aggregate amount specified in paragraph (1) for
such fiscal year exceeds the amount required to
carry out approved grant applications and other
functions under paragraph (3), then the amount
specified in section 2003(c)(5) shall be increased by
the excess.
‘‘(e) DEFINITIONS.—As used in this section:
‘‘(1) ADOLESCENTS.—The term ‘adolescents’
means youth who are ages 10 through 19.
‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible en-
tity’ means a partnership that includes—
170
‘‘(A) a local education agency, acting on
behalf of one or more schools, together with
‘‘(B) one or more community-based organi-
zations, institutions of higher education, or
public or private agencies or organizations.
‘‘(3) ELIGIBLE AREA.—The term ‘eligible area’
means a school attendance area in which—
‘‘(A) at least 75 percent of the children are
from low-income families as that term is used
in part A of title I of the Elementary and Sec-
ondary Education Act of 1965; or
‘‘(B) the number of children receiving Aid
to Families with Dependent Children under
part A of title IV is substantial as determined
by the responsible Federal officials; or
‘‘(C) the unmarried adolescent birth rate is
high, as determined by the responsible Federal
officials.
‘‘(4) SCHOOL.—The term ‘school’ means a pub-
lic elementary, middle, or secondary school.
‘‘(5) RESPONSIBLE FEDERAL OFFICIALS.—The
term ‘responsible Federal officials’ means the Sec-
retary of Education, the Secretary of Health and
Human Services, and the Chief Executive Officer of
171
the Corporation for National and Community Serv-
ice.
‘‘(f) USES OF FUNDS.—Grants under this section—
‘‘(1) shall be used to—
‘‘(A) develop, operate, expand, and improve
a sequential, age-appropriate program of in-
struction and counseling services for adolescents
designed to promote personal responsibility and
a healthy drug free lifestyle, and to prevent ad-
olescent pregnancy, through such activities as
counseling and instruction in the full range of
consequences of premature sexual behavior and
adolescent pregnancy, training in decision-mak-
ing, and activities to promote involvement of
parents and families in adolescent development
and personal responsibility; and
‘‘(B) provide opportunities for youth at-
risk to develop sustained contact with one or
more volunteer or professionally trained adults
to provide character development, through such
activities as mentoring, group coaching, or
after-school activities; and
‘‘(2) may be used to conduct other related ac-
tivities that promote the purposes of this section.
172
‘‘(g) APPLICATION.—Each applicant for a grant
under subsection (b) must submit an application that—
‘‘(1) includes a plan, based on local needs, for
accomplishing the purposes of this section that—
‘‘(A) sets forth specific, measurable goals
intended to be accomplished under the program,
and describes the methods to be used in meas-
uring progress toward accomplishment of such
goals;
‘‘(B) describes the components of the pro-
gram, including—
‘‘(i) the role in the program of any
national service participants supported by
the National and Community Service Act
of 1990 (42 U.S.C. 12501 et seq.) or by
any other national service law as defined in
such Act, and
‘‘(ii) the activities, in accordance with
subsection (f), that will be made available
under the program,
and the manner in which such components will
be implemented, including the extent to which
activities will take place after school, on week-
ends, or during the summer;
173
‘‘(C) describes the manner in which one or
more professional staff will administer the pro-
gram, and, where appropriate or feasible, the
manner in which national service participants
will be involved in the development or delivery
of services and in the coordination of during or
after-school activities;
‘‘(2) demonstrates the manner in which the pro-
gram will be based on research concerning effective
means of reducing adolescent pregnancy, including
reducing risk-taking behaviors correlated with ado-
lescent pregnancy;
‘‘(3) demonstrates that the program will serve
male and female adolescents and, where feasible,
out-of-school adolescents, and describes the steps the
applicant will take to serve such adolescents;
‘‘(4) demonstrates the manner in which the ap-
plicant will provide, to the extent feasible, a continu-
ity of services for adolescents until age 19;
‘‘(5) demonstrates the extent to which school
personnel, parents, community organizations, and
the adolescents to be served have participated in the
development of the application and will participate
in the planning and implementation of the program;
174
‘‘(6) describes the applicant’s partnership, in-
cluding the relationship of the partners, the role of
each partner in the development and implementation
of the program, and the manner in which the part-
ners will coordinate their resources;
‘‘(7) describes the nature and scope of commit-
ment to the program by other community institu-
tions, such as religious organizations, community
groups, institutions of higher education, business,
and labor;
‘‘(8) describes the methods to be used in coordi-
nating the provision of services under the program
with the provision of services or benefits under other
Federal or federally assisted programs, State and
local programs, and private programs serving the
same population;
‘‘(9) demonstrates that the area to be served is
an eligible area;
‘‘(10) contains assurances that at least one ac-
tivity will be located in a school in the area to be
served and describes the activities that will be
school-based;
‘‘(11) contains assurances that the amounts
provided under this section will not be used to sup-
176
‘‘(2) participate in other Federal and non-Fed-
eral programs that relate to the purposes of this sec-
tion.
‘‘(i) TREATMENT
AS NON-FEDERAL SHARE.—For
purposes of the National and Community Service Act of
1990 (42 U.S.C. 12501 et seq.), the funds provided to
a grantee under this section shall not be considered Fed-
eral funds.
‘‘(j) PROHIBITION ON USE OF FUNDS.—No assist-
ance made available under this section shall be used to
provide religious instruction, to conduct worship services,
or to promote any religious view or teaching in any man-
ner.
‘‘(k) GEOGRAPHIC
DIVERSITY.—The responsible
Federal officials shall, to the extent feasible, ensure that
applications are approved from both urban and rural areas
and reflect nationwide geographic diversity.
‘‘(l) APPLICATION PERIOD.—An application approved
under this section shall be for a term of 5 years; except
that approval may be terminated before the end of such
period if the responsible Federal officials determine that
the grantee conducting the program has failed substan-
tially to carry out the program as described in the ap-
proved application.
177
‘‘(m) EVALUATION, TRAINING, AND TECHNICAL AS-
SISTANCE.—
‘‘(1) EVALUATION.—The responsible Federal
officials shall evaluate the effectiveness of programs
conducted under this section, directly or by grant or
contract, and may require each grantee conducting
such a program to provide such information as the
responsible Federal officials determine is necessary
for such evaluations.
‘‘(2) TRAINING AND TECHNICAL ASSISTANCE.—
The responsible Federal officials may provide train-
ing and technical assistance with respect to the de-
velopment, implementation, or operation of programs
under this section.
‘‘(3) COORDINATION
WITH
NATIONAL
CLEAR-
INGHOUSE.—The responsible Federal officials shall
coordinate the activities conducted under this sub-
section with the activities conducted by the National
Clearinghouse on Adolescent Pregnancy Prevention
Programs under subsection (n).
‘‘(n) NATIONAL CLEARINGHOUSE ON ADOLESCENT
PREGNANCY.—
‘‘(1) ESTABLISHMENT.—The responsible Fed-
eral officials shall establish, through grant or con-
tract, a national center for the collection and provi-
178
sion of programmatic information and technical as-
sistance that relates to adolescent pregnancy preven-
tion programs, to be known as the ‘National Clear-
inghouse on Adolescent Pregnancy Prevention Pro-
grams’.
‘‘(2) FUNCTIONS.—The national center estab-
lished under paragraph (1) shall serve as a national
information and data clearinghouse, and as a train-
ing, technical assistance, and material development
source for adolescent pregnancy prevention pro-
grams. Such center shall—
‘‘(A) develop and maintain a system for
disseminating information on all types of ado-
lescent pregnancy prevention program and on
the state of adolescent pregnancy prevention
program development, including information
concerning the most effective model programs;
‘‘(B) develop and sponsor a variety of
training institutes and curricula for adolescent
pregnancy prevention program staff;
‘‘(C) identify model programs representing
the various types of adolescent pregnancy pre-
vention programs;
‘‘(D) develop technical assistance materials
and activities to assist other entities in estab-
179
lishing and improving adolescent pregnancy
prevention programs;
‘‘(E) develop networks of adolescent preg-
nancy prevention programs for the purpose of
sharing and disseminating information; and
‘‘(F) conduct such other activities as the
responsible Federal officials find will assist in
developing and carrying out programs or activi-
ties to reduce adolescent pregnancy.’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall become effective October 1, 1994.
SEC. 506. DEMONSTRATION PROJECTS TO PROVIDE COM-
PREHENSIVE SERVICES TO PREVENT ADO-
LESCENT PREGNANCY IN HIGH-RISK COMMU-
NITIES.
(a) DEMONSTRATON
PROJECTS.—Title XX (42
U.S.C. 1397–1397f) is amended by adding at the end the
following:
‘‘SEC. 2009. DEMONSTRATION PROJECTS TO PROVIDE COM-
PREHENSIVE SERVICES TO PREVENT ADO-
LESCENT PREGNANCY IN HIGH-RISK COMMU-
NITIES.
‘‘(a)(1) PURPOSE.—In order to stimulate the develop-
ment of innovative approaches for the effective delivery of
comprehensive services, with particular emphasis on preg-
180
nancy prevention, to certain youth and their families in
high-risk communities and the promotion of community
involvement in improving the environment in which such
youth live, the Secretary of Health and Human Services
shall conduct demonstration projects in accordance with
this section.
‘‘(2) APPROVAL OF PROJECTS.—The Secretary of
Health and Human Services, in consultation with the Sec-
retary of Education, the Secretary of Housing and Urban
Development, the Attorney General, the Director of the
Office of National Drug Control Policy, and the Secretary
of Labor, shall approve at least 5 and not more than 7
projects, in accordance with subsection (c). Upon approval
by the Secretary, each project applicant shall be entitled
to payment of up to $3,600,000 for each of fiscal years
1995 through 1999 for the purpose of conducting ap-
proved demonstration projects.
‘‘(b) FUNDING.—
‘‘(1) IN GENERAL.—There shall be made avail-
able to the Secretary not to exceed $20,000,000 for
each of fiscal years 1995 through 1999 for carrying
out the projects under this section. Payments to a
grantee for any fiscal year must be expended by the
grantee in such fiscal year or the succeeding fiscal
year.
181
‘‘(2) EVALUATION, TRAINING, AND TECHNICAL
ASSISTANCE.—The Secretary shall reserve, with re-
spect to each fiscal year, ten percent of the amount
described in paragraph (1) for expenditure by the
Secretary for training and technical assistance relat-
ed to the demonstration projects under this section
and for evaluation of such projects. The amount so
reserved shall remain available for obligation
through fiscal year 1999.
‘‘(3) EXCESS AMOUNTS.—If in any fiscal year
the amount specified in paragraph (1) for such fiscal
year exceeds the amount required to carry out ap-
proved projects and evaluation, training, and tech-
nical assistance under this section, then the amount
specified in section 2003(c)(5) shall be increased by
the excess.
‘‘(c) APPLICATION; ELIGIBILITY CRITERIA.—A local
public or private nonprofit organization, including a unit
of government, or any combination of such entities, shall
be eligible to submit a project application. In order that
an application be approved under subsection (a), the appli-
cation must—
‘‘(1) demonstrate that the geographic area to be
served by the project satisfies the following criteria:
182
‘‘(A) it includes a population of 20,000 to
35,000 residents,
‘‘(B) it has an identifiable boundary and is
recognizable as a community by its residents,
and
‘‘(C) within the community, there is a pov-
erty rate of not less than 20 percent;
‘‘(2) include a plan for accomplishing the pur-
poses of this section that—
‘‘(A) describes the comprehensive, inte-
grated services, in accordance with subsection
(e), that will be made available under the
project;
‘‘(B)(i) sets forth the goals intended to be
accomplished under the project, and
‘‘(ii) describes the methods to be used in
measuring progress toward accomplishment of
such goals and the outcomes to be measured,
including unmarried adolescent birth rates,
rates of youth alcohol and drug use, rates of
youth violence, high school graduation rates,
and such other outcomes as the Secretary finds
appropriate;
‘‘(C) describes the process by which the af-
fected community (including parents, the youth
183
to be served, schools, local government, religious
organizations, community groups, business, and
labor) is a full partner in the process of devel-
oping and implementing the project and the ex-
tent to which parents, the youth to be served,
and local institutions and organizations have
contributed to the planning process;
‘‘(D) identifies the private and public part-
nerships to be used;
‘‘(E) describes the methods to be used in
coordinating the provision of services under the
project and the provision of services or benefits
under other Federal or federally assisted pro-
grams, State and local programs, and private
programs serving the same population; and
‘‘(F) describes the manner in which other
Federal funds and non-Federal funds will be
used to further the purpose of the program;
‘‘(3) demonstrate strong State and local govern-
ment commitment to the project and involvement in
the planning and implementation of the project;
‘‘(4) demonstrate the ability of the applicant to
carry out the project;
184
‘‘(5) describe the methods to be used for main-
taining accurate records regarding the activities car-
ried out with funds under this section;
‘‘(6) contain assurances that the amounts pro-
vided under this section will not be used to supplant
Federal, State, and local funds for services and ac-
tivities that promote the purposes of this section;
‘‘(7) contain assurances that the applicant will
provide a non-Federal share, in cash or in kind, of
10 percent of the cost of carrying out the approved
project and describe the capacity of the applicant to
provide the non-Federal share;
‘‘(8) contain assurances that the applicant will
furnish such reports, containing such information,
and participate in such evaluations, as the Secretary
may require; and
‘‘(9) include such other information as the Sec-
retary may require.
‘‘(d) PRIORITY.—In making awards under this sec-
tion, the Secretary shall give priority to applicants that
provide for non-Federal resources significantly in excess
of those required in subsection (c)(7).
‘‘(e) USE OF GRANTS.—Under each demonstration
project conducted under this section, the grantee shall de-
velop a community-wide strategy to address the causes
185
and factors of risk-taking tendencies among youth, to
positively affect community norms, to increase community
health and safety, and to generally improve the social envi-
ronment to enhance the life choice of community youth.
The strategy shall be used to provide a comprehensive set
of coordinated services designed to saturate the commu-
nity and shall include, but not be limited to, the following
areas:
‘‘(1) Health education and access services de-
signed to promote physical and mental well-being
and personal responsibility (with particular emphasis
on pregnancy prevention), such as school health
services, family planning services, alcohol and drug
abuse prevention services and referral for treatment,
life skills training, and decision-making skills train-
ing.
‘‘(2) Educational and employability development
services designed to promote educational advance-
ment leading to a high school diploma or its equiva-
lent and opportunities for high skill, high wage job
attainment and productive employment, to establish
a lifelong commitment to learning and achievement,
and to increase self-confidence, such as academic tu-
toring, literacy training, drop-out prevention pro-
grams, career and college counseling, mentoring pro-
186
grams, job skills training, apprenticeships, and part-
time paid work opportunities.
‘‘(3) Social support services designed to provide
youth with a stable environment, opportunities for a
sustained relationship with one or more adults, and
opportunities for participation in safe and productive
activities, such as cultural, recreational and sports
activities, leadership development, peer counseling
and 
crisis 
intervention, 
mentoring 
programs,
parenting skills training, and family counseling.
‘‘(4) Community activities designed to improve
community stability, and to encourage youth to par-
ticipate in community service and establish a stake
in the community, such as community policing, com-
munity service programs, community activities in
partnership with less distressed neighborhoods, local
media campaigns, and establishment of community
advisory councils with youth representation.
‘‘(5) Employment opportunity development ac-
tivities designed to be coordinated with educational
and employability development services, social sup-
port services, and community activities described in
paragraphs (2) through (4). Emphasis shall be on
development of linkages with employers within and
outside the community to help create employment
187
opportunities and foster an understanding by com-
munity youth of the relationship between productive
employment, healthy development, and sound life
choices.
‘‘(f) EVALUATION, TRAINING, AND TECHNICAL AS-
SISTANCE.—
‘‘(1) EVALUATION.—The Secretary shall evalu-
ate the effectiveness of each demonstration project
conducted under this section and may require each
grantee conducting such a project to provide such
information as the Secretary determines is necessary
for such evaluations.
‘‘(2) TRAINING AND TECHNICAL ASSISTANCE.—
The Secretary shall provide training and technical
assistance with respect to the development, imple-
mentation, or operation of projects under this sec-
tion.
‘‘(3) COORDINATION
WITH
NATIONAL
CLEAR-
INGHOUSE.—The Secretary shall coordinate the ac-
tivities conducted under this subsection with activi-
ties conducted by the National Clearinghouse on Ad-
olescent Pregnancy Prevention Programs under sec-
tion 2008(n).
‘‘(g) 
FUNDING
PERIOD.—Each 
demonstration
project supported under this section shall be conducted for
188
a 5-year period; except that the Secretary may terminate
a project before the end of such period if the Secretary
determines that the grantee conducting the project has
failed substantially to carry out the project as described
in the approved application.
‘‘(h) DEFINITIONS AND SPECIAL RULES.—As used in
this section:
‘‘(1) YOUTH.—The term ‘youth’ means an indi-
vidual who is not less than 10 years of age and not
more than 21 years of age.
‘‘(2) USE OF CENSUS DATA.—Population and
poverty rate shall be determined by the most recent
decennial census data available.’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall become effective October 1, 1994.
TITLE VI—CHILD SUPPORT
ENFORCEMENT
SEC. 600. REFERENCES IN TITLE.
References in this title to a section or other provision
refer to a section or other provision of the Social Security
Act, unless the context otherwise requires.
189
PART A—ELIGIBILITY AND OTHER MAT-
TERS CONCERNING TITLE IV-D PRO-
GRAM CLIENTS
SEC. 601. COOPERATION REQUIREMENT AND GOOD CAUSE
EXCEPTION.
(a) CHILD
SUPPORT
ENFORCEMENT
REQUIRE-
MENTS.—Section 454 is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(23);
(2) by striking the period at the end of para-
graph (24) and inserting ‘‘; and’’; and
(3) by adding after paragraph (24) the follow-
ing new paragraph:
‘‘(25) provide that the State agency administer-
ing the plan under this part—
‘‘(A) will make the determination specified
under paragraph (4), as to whether an individ-
ual is cooperating with efforts to establish pa-
ternity and secure support (or has good cause
not to cooperate with such efforts) for purposes
of the requirements of sections 402(a)(26) and
1912;
‘‘(B) will advise individuals, both orally
and in writing, of the grounds for good cause
190
exceptions to the requirement to cooperate with
such efforts;
‘‘(C) will take the best interests of the
child into consideration in making the deter-
mination whether such individual has good
cause not to cooperate with such efforts;
‘‘(D)(i) will make the initial determination
as to whether an individual is cooperating (or
has good cause not to cooperate) with efforts to
establish paternity within 10 days after such in-
dividual is referred to such State agency by the
State agency administering the program under
part A of title XIX;
‘‘(ii) will make redeterminations as to co-
operation or good cause at appropriate inter-
vals; and
‘‘(iii) will promptly notify the individual,
and the State agencies administering such pro-
grams, of each such determination and redeter-
mination;
‘‘(E) with respect to any child born on or
after the date 10 months after enactment of
this provision, will not determine (or redeter-
mine) the mother (or other custodial relative) of
such child to be cooperating with efforts to es-
191
tablish paternity unless such individual fur-
nishes—
‘‘(i) the name of the putative father
(or fathers); and
‘‘(ii) sufficient additional information
to enable the State agency, if reasonable
efforts were made, to verify the identity of
the person named as the putative father
(including such information as the putative
father’s present address, telephone num-
ber, date of birth, past or present place of
employment, school previously or currently
attended, and names and addresses of par-
ents, friends, or relatives able to provide
location information, or other information
that could enable service of process on
such person), and
‘‘(F)(i) (where a custodial parent who was
initially determined not to be cooperating (or to
have good cause not to cooperate) is later deter-
mined to be cooperating or to have good cause
not to cooperate) will immediately notify the
State agencies administering the programs
under part A of title XIX that this eligibility
condition has been met; and
192
‘‘(ii) (where a custodial parent was initially
determined to be cooperating (or to have good
cause not to cooperate)) will not later determine
such individual not to be cooperating (or not to
have good cause not to cooperate) until such in-
dividual has been afforded an opportunity for a
hearing.’’.
(b) AFDC AMENDMENTS.—
(1) Section 402(a)(11) is amended by striking
‘‘furnishing of’’ and inserting ‘‘application for’’.
(2) Section 402(a)(26) is amended—
(A) in each of subparagraphs (A) and (B),
by redesignating clauses (i) and (ii) as
subclauses (I) and (II);
(B) by indenting and redesignating sub-
paragraphs (A), (B), and (C) as clauses (i), (ii),
and (iv), respectively;
(C) in clause (ii), as redesignated—
(i) by striking ‘‘is claimed, or in ob-
taining any other payments or property
due such applicant or such child,’’ and in-
serting ‘‘is claimed;’’; and
(ii) by striking ‘‘unless’’ and all that
follows through ‘‘aid is claimed; and’’;
193
(D) by adding after clause (ii) the follow-
ing new clause:
‘‘(iii) to cooperate with the State in
obtaining any other payments or property
due such applicant or such child; and’’;
(E) in the matter preceding clause (i), as
redesignated, to read as follows:
‘‘(26) provide—
‘‘(A) that, as a condition of eligibility for
aid, each applicant or recipient will be required
(subject to subparagraph (C))—’’;
(F) in subparagraph (A)(iv), as redesig-
nated, by striking ‘‘, unless such individual’’
and all that follows through ‘‘individuals in-
volved’’;
(G) by adding at the end the following new
subparagraphs:
‘‘(B) that the State agency will imme-
diately refer each applicant requiring paternity
establishment services to the State agency ad-
ministering the program under part D;
‘‘(C) that an individual will not be required
to cooperate with the State, as provided under
subparagraph (A), if the individual is found to
have good cause for refusing to cooperate, as
194
determined in accordance with standards pre-
scribed by the Secretary, which standards shall
take into consideration the best interests of the
child on whose behalf aid is claimed—
‘‘(i) to the satisfaction of the State
agency administering the program under
part D, as determined in accordance with
section 454(25), with respect to the re-
quirements under clauses (i) and (ii) of
subparagraph (A); and
‘‘(ii) to the satisfaction of the State
agency administering the program under
this part, with respect to the requirements
under clauses (iii) and (iv) of subpara-
graph (A);
‘‘(D) that (except as provided in subpara-
graph (E)) an applicant requiring paternity es-
tablishment services (other than an individual
eligible for emergency assistance as defined in
section 406(e)) shall not be eligible for any aid
under this part until such applicant—
‘‘(i) has furnished to the agency ad-
ministering the State plan under part D
the 
information 
specified 
in 
section
454(25)(E); or
195
‘‘(ii) has been determined by such
agency to have good cause not to cooper-
ate;
‘‘(E) that the provisions of subparagraph
(D) shall not apply—
‘‘(i) if the State agency specified in
such subparagraph has not, within 10 days
after such individual was referred to such
agency, provided the notification required
by section 454(25)(D)(iii), until such noti-
fication is received; and
‘‘(ii) if such individual appeals a de-
termination that the individual lacks good
cause for noncooperation, until after such
determination is affirmed after notice and
opportunity for a hearing; and’’; and
(H)(i) by relocating and redesignating as
subparagraph (F) the text at the end of sub-
paragraph (A)(ii) beginning with ‘‘that, if the
relative’’ and all that follows through the semi-
colon;
(ii) in subparagraph (F), as so redesig-
nated and relocated, by striking ‘‘subpara-
graphs (A) and (B) of this paragraph’’ and in-
serting ‘‘subparagraph (A)’’; and
196
(iii) by striking ‘‘and’’ at the end of sub-
paragraph (a)(ii).
(c) MEDICAID AMENDMENTS.—Section 1912(a) is
amended—
(1) in paragraph (1)(B), by inserting ‘‘(except
as provided in paragraph (2))’’ after ‘‘to cooperate
with the State’’;
(2) in subparagraphs (B) and (C) of paragraph
(1) by striking ‘‘, unless’’ and all that follows and
inserting a semicolon; and
(3) by redesignating paragraph (2) as para-
graph (5), and inserting after paragraph (1) the fol-
lowing new paragraphs:
‘‘(2) provide that the State agency will imme-
diately refer each applicant or recipient requiring
paternity establishment services to the State agency
administering the program under part D of title IV;
‘‘(3) provide that an individual will not be re-
quired to cooperate with the State, as provided
under paragraph (1), if the individual is found to
have good cause for refusing to cooperate, as deter-
mined in accordance with standards prescribed by
the Secretary, which standards shall take into con-
sideration the best interests of the individuals in-
volved—
197
‘‘(A) to the satisfaction of the State agency
administering the program under part D, as de-
termined in accordance with section 454(25),
with respect to the requirements to cooperate
with efforts to establish paternity and to obtain
support (including medical support) from a par-
ent; and
‘‘(B) to the satisfaction of the State agen-
cy administering the program under this title,
with respect to other requirements to cooperate
under paragraph (1);
‘‘(4) provide that (except as provided in para-
graph (5)) an applicant requiring paternity estab-
lishment services (other than an individual eligible
for emergency assistance as defined in section
406(e), or presumptively eligible pursuant to section
1920) shall not be eligible for medical assistance
under this title until such applicant—
‘‘(i) has furnished to the agency admin-
istering the State plan under part D of title IV
the information specified in section 454(25)(E);
or
‘‘(ii) has been determined by such agency
to have good cause not to cooperate; and
198
‘‘(5) provide that the provisions of paragraph
(4) shall not apply with respect to an applicant—
‘‘(i) if such agency has not, within 10 days
after such individual was referred to such agen-
cy, provided the notification required by section
454(25)(D)(iii), until such notification is re-
ceived); and
‘‘(ii) if such individual appeals a deter-
mination that the individual lacks good cause
for noncooperation, until after such determina-
tion is affirmed after notice and opportunity for
a hearing.’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall be effective with respect to applications
filed in or after the first calendar quarter beginning 10
months or more after enactment of this amendment (or
such earlier quarter as the State may select) for aid under
title IV–A or for medical assistance under title XIX.
SEC. 602. STATE OBLIGATION TO PROVIDE PATERNITY ES-
TABLISHMENT 
AND 
CHILD 
SUPPORT 
EN-
FORCEMENT SERVICES.
(a) STATE LAW REQUIREMENTS.—Section 466(a) is
amended by adding at the end the following new para-
graph:
199
‘‘(12) USE OF CENTRAL CASE REGISTRY AND
CENTRALIZED
COLLECTIONS
UNIT.—Procedures
under which—
‘‘(A) every child support order established
or modified in the State on or after October 1,
1997, is recorded in the central case registry
established in accordance with section 454A(e);
and
‘‘(B) child support payments are collected
through the centralized collections unit estab-
lished in accordance with section 454B—
‘‘(i) on and after October 1, 1997,
under each order subject to wage withhold-
ing under section 466(b); and
‘‘(ii) on and after October 1, 1998,
under each other order required to be re-
corded in such central case registry under
this paragraph or section 454A(e), except
as provided in subparagraph (C); and
‘‘(C)(i) parties subject to a child support
order described in subparagraph (B)(ii) may
opt out of the procedure for payment of support
through the centralized collections unit (but not
the procedure for inclusion in the central case
registry) by filing with the State agency a writ-
200
ten agreement, signed by both parties, to an al-
ternative payment procedure; and
‘‘(ii) an agreement described in clause (i)
becomes void, and may not be renewed, when-
ever—
‘‘(I) the party owing support fails to
make a timely payment; or
‘‘(II) either party advises the State
agency of an intent to vacate the agree-
ment.’’.
(b) STATE PLAN REQUIREMENTS.—Section 454 is
amended—
(1) in paragraph (4), to read as follows:
‘‘(4) provide that such State will undertake—
‘‘(A) to provide appropriate services under
this part to—
‘‘(i) each child with respect to whom
an assignment is effective under section
402(a)(26), 471(a)(17), or 1912 (except in
cases where the State agency determines,
in accordance with paragraph (25), that it
is against the best interests of the child to
do so); and
‘‘(ii) each child not described in clause
(i)—
201
‘‘(I) with respect to whom an in-
dividual applies for such services; and
‘‘(II) (on and after October 1,
1997) each child with respect to
whom a support order is recorded in
the central State case registry estab-
lished under section 454A, regardless
of whether application is made for
services under this part; and
‘‘(B) to enforce the support obligation es-
tablished with respect to the custodial parent of
a child described in subparagraph (A).’’;
(2) in paragraph (6)—
(A) by striking all that precedes subpara-
graph (C) and inserting the following:
‘‘(6) provide that—
‘‘(A) services under the State plan shall be
made available to nonresidents on the same
terms as to residents;
‘‘(B) no fees or costs shall be imposed on
any absent or custodial parent or other individ-
ual—
‘‘(i) on or after October 1, 1997, for
application for child support enforcement
services under this part; or
202
‘‘(ii) for inclusion in the central State
registry maintained pursuant to section
454A(e);’’;
(B) in each of subparagraphs (C) and
(D)—
(i) by indenting such subparagraph
and aligning its left margin with the left
margin of paragraph (B); and
(ii) by striking the final comma and
inserting a semicolon;
(C) by striking subparagraph (E) and in-
serting the following subparagraphs:
‘‘(E) no other fees or costs may be im-
posed on the custodial parent; and
‘‘(F) any other fees or costs may be im-
posed on the noncustodial parent (but fees for
child 
support 
collection 
services 
provided
through the central collections unit operated
pursuant to section 454B, or for related auto-
mated procedures pursuant to section 454A(g),
may be imposed only if such fees or costs are
added to, and not deducted from, amounts col-
lected as child support);’’.
(c) CONFORMING AMENDMENTS.—
203
(1) Section 452(g)(2)(A) is amended by striking
‘‘454(6)’’ each place it appears and inserting
‘‘454(4)(A)(ii)’’.
(2) Section 454(23) is amended, effective Octo-
ber 1, 1997, by striking ‘‘information as to any ap-
plication fees for such services and’’.
(3) Section 466(a)(3)(B) is amended by strik-
ing ‘‘in the case of overdue support which a State
has agreed to collect under section 454(6)’’ and in-
serting ‘‘in any other case’’.
(4) Section 466(e) is amended by striking ‘‘or
(6)’’.
SEC. 603. DISTRIBUTION OF PAYMENTS.
(a) DISTRIBUTIONS THROUGH STATE CHILD SUP-
PORT ENFORCEMENT AGENCY TO FORMER ASSISTANCE
RECIPIENTS.—Section 454(5) is amended—
(1) in subparagraph (A)—
(A) by inserting ‘‘except as otherwise spe-
cifically provided in section 464 or 466(a)(3),’’
after ‘‘is effective,’’; and
(B) by striking ‘‘except that’’ and all that
follows through the semicolon; and
(2) in subparagraph (B), by striking ‘‘, except’’
and all that follows through ‘‘medical assistance’’.
204
(b) DISTRIBUTION TO A FAMILY CURRENTLY RE-
CEIVING AFDC.—Section 457 is amended—
(1) by striking subsection (a) and redesignating
subsection (b) as subsection (a);
(2) in subsection (a), as redesignated—
(A) in the matter preceding paragraph (2),
to read as follows:
‘‘(a) IN
THE
CASE
OF
A
FAMILY
RECEIVING
AFDC.—Amounts collected under this part during any
month as support of a child who is receiving assistance
under part A (or a parent or caretaker relative of such
a child) shall (except in the case of a State exercising the
option under subsection (b)) be distributed as follows:
‘‘(1) an amount equal to the amount specified
in section 402(a)(8)(A)(vi) shall be taken from each
of—
‘‘(A) amounts received in a month which
represent payments for that month; and
‘‘(B) amounts received in a month which
represent payments for a prior month which
were made by the absent parent in the month
when due;
and shall be paid to the family without affecting its
eligibility for assistance or decreasing any amount
205
otherwise payable as assistance to such family dur-
ing such month;’’;
(B) in paragraph (4), by striking ‘‘or (B)’’
and all that follows and inserting ‘‘; then (B)
from any remainder, amounts equal to arrear-
ages of such support obligations assigned, pur-
suant to part A, to any other State or States
shall be paid to such other State or States and
used to pay any such arrearages (with appro-
priate reimbursement of the Federal Govern-
ment to the extent of its participation in the fi-
nancing); and then (C) any remainder shall be
paid to the family.’’.
(3) by inserting after subsection (a), as redesig-
nated, the following new subsection:
‘‘(b) ALTERNATIVE DISTRIBUTION IN CASE OF FAM-
ILY RECEIVING AFDC.—In the case of a State electing
the option under this subsection, amounts collected as de-
scribed in subsection (a) shall be distributed as follows:
‘‘(1) an amount equal to the amount specified
in section 402(a)(8)(A)(vi) shall be taken from each
of—
‘‘(A) amounts received in a month which
represent payments for that month; and
206
‘‘(B) amounts received in a month which
represent payments for a prior month which
were made by the absent parent in the month
when due;
and shall be paid to the family without affecting its
eligibility for assistance or decreasing any amount
otherwise payable as assistance to such family dur-
ing such month;
‘‘(2) second, from any remainder, amounts
equal to the balance of support owed for the current
month shall be paid to the family;
‘‘(3) third, from any remainder, amounts equal
to arrearages of such support obligations assigned,
pursuant to part A, to the State making the collec-
tion shall be retained and used by such State to pay
any such arrearages (with appropriate reimburse-
ment of the Federal Government to the extent of its
participation in the financing);
‘‘(4) fourth, from any remainder, amounts
equal to arrearages of such support obligations as-
signed, pursuant to part A, to any other State or
States shall be paid to such other State or States
and used to pay any such arrearages (with appro-
priate reimbursement of the Federal Government to
the extent of its participation in the financing); and
207
‘‘(5) fifth, any remainder shall be paid to the
family.’’.
(c) DISTRIBUTION TO A FAMILY NOT RECEIVING
AFDC.—Section 457(c) is amended to read as follows:
‘‘(c) IN CASE OF FAMILY NOT RECEIVING AFDC.—
Amounts collected by a State agency under this part dur-
ing any month as support of a child who is not receiving
assistance under part A (or of a parent or caretaker rel-
ative of such a child) shall (subject to the remaining provi-
sions of this section) be distributed as follows:
‘‘(1) first, amounts equal to the total of such
support owed for such month shall be paid to the
family;
‘‘(2) second, from any remainder, amounts
equal to arrearages of such support obligations for
months during which such child did not receive as-
sistance under part A shall be paid to the family;
‘‘(3) third, from any remainder, amounts equal
to arrearages of such support obligations assigned to
the State making the collection pursuant to part A
shall be retained and used by such State to pay any
such arrearages (with appropriate reimbursement of
the Federal Government to the extent of its partici-
pation in the financing);
208
‘‘(4) fourth, from any remainder, amounts
equal to arrearages of such support obligations as-
signed to any other State pursuant to part A shall
be paid to such other State or States, and used to
pay such arrearages, in the order in which such ar-
rearages accrued (with appropriate reimbursement
of the Federal Government to the extent of its par-
ticipation in the financing).’’.
(d) DISTRIBUTION TO A CHILD RECEIVING ASSIST-
ANCE UNDER TITLE IV–E.—Subsection (d) is amended,
in the matter preceding paragraph (1), by striking ‘‘Not-
withstanding the preceding provisions of this section,
amounts’’ and inserting ‘‘IN CASE OF A CHILD RECEIVING
ASSISTANCE UNDER TITLE IV–E.—Amounts’’.
(e) SUSPENSION OR CANCELLATION OF DEBTS UPON
MARRIAGE OF PARENTS.—Section 457 is further amend-
ed by adding at the end the following new subsection:
‘‘(e) SUSPENSION OR CANCELLATION OF DEBTS TO
STATE
UPON
MARRIAGE
OF
PARENTS.—(1) CIR-
CUMSTANCES REQUIRING SUSPENSION
OR CANCELLA-
TION.—In any case in which a State has been assigned
rights to support owed with respect to a child who is re-
ceiving or has received assistance under part A and—
‘‘(A) the parent owing such support marries (or
remarries) the parent with whom such child is living
209
and to whom such support is owed and applies to
the State for relief under this subsection;
‘‘(B) the State determines (in accordance with
procedures and criteria established by the Secretary)
that the marriage is not a sham marriage entered
into solely to satisfy this subsection; and
‘‘(C) the combined income of such parents is
less than twice the Federal poverty line,
the State shall afford relief to the parent owing such sup-
port in accordance with paragraph (2).
‘‘(2) SUSPENSION OR CANCELLATION.—In the case
of a marriage or remarriage described in paragraph (1),
the State shall either—
‘‘(A) cancel all debts owed to the State pursu-
ant to such assignment, or
‘‘(B) suspend collection of such debts for the
duration of such marriage, and cancel such debts if
such duration extends beyond the end of the period
with respect to which support is owed.
‘‘(3) NOTICE REQUIRED.—The State shall notify cus-
todial parents of children who are receiving aid under part
A of the relief available under this subsection to individ-
uals who marry (or remarry).’’.
(f) REGULATIONS.—The Secretary shall promulgate
regulations—
210
(1) under title IV–D of the Social Security Act,
establishing a uniform nationwide standard for allo-
cation of child support collections from an obligor
owing support to more than one family; and
(2) under title IV–A of such Act, establishing
standards applicable to States electing the alter-
native formula under section 457(b) of the Social
Security Act for distribution of collections on behalf
of families receiving Aid to Families with Dependent
Children, designed to minimize irregular monthly
payments to such families.
(g) CLERICAL AMENDMENT.—Section 454 is amend-
ed—
(1) in paragraph (11), by striking ‘‘(11)’’ and
inserting ‘‘(11)(A)’’; and
(2) by redesignating paragraph (12) as sub-
paragraph (B) of paragraph (11).
(h) 
CONFORMING
AMENDMENT.—Section
402(a)(26)(A)(i), as redesignated by section 601(b)(2)(A),
is amended—
(1) by striking ‘‘(I)’’; and
(2) by striking ‘‘, and (II)’’ and all that follows
before the semicolon.
211
SEC. 604. DUE PROCESS RIGHTS.
(a) Section 454, as amended by section 603(g), is fur-
ther amended by inserting after paragraph (11) the follow-
ing new paragraph:
‘‘(12) provide for procedures to ensure that—
‘‘(A) individuals who are parties to cases
in which services are being provided under this
part—
‘‘(i) receive notice of all proceedings in
which support obligations might be estab-
lished or modified; and
‘‘(ii) receive a copy of any order estab-
lishing or modifying a child support obliga-
tion within 14 days after issuance of such
order; and
‘‘(B) individuals receiving services under
this part have access to a fair hearing or other
formal complaint procedure, meeting standards
established by the Secretary, that ensures
prompt consideration and resolution of com-
plaints (but the resort to such procedure shall
not stay the enforcement of any support
order);’’.
(b) EFFECTIVE DATE.—The amendments made by
this section shall become effective on October 1, 1996.
212
SEC. 605. PRIVACY SAFEGUARDS.
(a) STATE PLAN REQUIREMENT.—Section 454, as
amended by section 601, is further amended—
(1) by striking ‘‘and’’ at the end of paragraph
(24);
(2) by striking the period at the end of para-
graph (25) and inserting ‘‘; and’’; and
(3) by adding after paragraph (25) the follow-
ing new paragraph;
‘‘(26) will have in effect safeguards applicable
to all sensitive and confidential information handled
by the State agency designed to protect the privacy
rights of the parties, including—
‘‘(A) safeguards against unauthorized use
or disclosure of information relating to proceed-
ings or actions to establish paternity, or to es-
tablish or enforce support; and
‘‘(B) prohibitions on the release of infor-
mation on the whereabouts of one party to an-
other party against whom a protective order
with respect to such party has been entered.’’.
(b) The amendments made by this section shall be-
come effective on October 1, 1996.
213
SEC. 606. REQUIREMENT TO FACILITATE ACCESS TO SERV-
ICES.
(a) STATE PLAN REQUIREMENT.—Section 454(23) is
amended—
(1) by striking ‘‘the State will regularly’’ and
inserting ‘‘the State will—
‘‘(A) regularly’’;
(2) by incorporating the remainder of the text
within subparagraph (A);
(3) by striking ‘‘and’’ at the end; and
(4) by adding after and below subparagraph
(A) the following new subparagraph:
‘‘(B) have a plan for outreach to parents
designed to disseminate information about and
increase access to child support enforcement
services, including plans responding to needs—
‘‘(i) of working parents to obtain such
services without taking time off work; and
‘‘(ii) of parents with limited pro-
ficiency in English for elimination of lan-
guage barriers to use of such services;
and’’.
(b) The amendments made by this section shall be-
come effective on October 1, 1996.
214
PART B—PROGRAM ADMINISTRATION AND
FUNDING
SEC. 611. FEDERAL MATCHING PAYMENTS.
(a) INCREASED BASE MATCHING RATE.—Section
455(a)(2) is amended to read as follows:
‘‘(2) The applicable percent for a quarter for
purposes of paragraph (1)(A) is—
‘‘(A) for fiscal year 1996, 69 percent,
‘‘(B) for fiscal year 1997, 72 percent, and
‘‘(C) for fiscal year 1998 and succeeding
fiscal years, 75 percent.’’.
(b) MAINTENANCE
OF EFFORT.—Section 455 is
amended—
(1) in subsection (a)(1), in the matter preced-
ing subparagraph (A), by striking ‘‘From’’ and in-
serting ‘‘Subject to subsection (c), from’’; and
(2) by inserting after subsection (b) the follow-
ing new subsection:
‘‘(c) MAINTENANCE OF EFFORT.—Notwithstanding
the provisions of subsection (a), total expenditures for the
State program under this part for fiscal year 1996 and
each succeeding fiscal year, reduced by the percentage
specified for such fiscal year under subsection (a)(2)(A),
(B), or (C)(i), shall not be less than such total expendi-
tures for fiscal year 1995, reduced by 66 percent.’’
215
SEC. 612. PERFORMANCE-BASED INCENTIVES AND PEN-
ALTIES.
(a) INCENTIVE ADJUSTMENTS TO FEDERAL MATCH-
ING RATE.—(1) IN GENERAL.—Section 458 is amended
to read as follows:
‘‘INCENTIVE ADJUSTMENTS TO MATCHING RATE
‘‘SEC. 458. (a) INCENTIVE ADJUSTMENT.—(1) IN
GENERAL.—In order to encourage and reward State child
support enforcement programs which perform in an effec-
tive manner, the Federal matching rate for payments to
a State under section 455(a)(1)(A), for each fiscal year
beginning on or after October 1, 1997, shall be increased
by a factor reflecting the sum of the applicable incentive
adjustments (if any) determined in accordance with regu-
lations under this section with respect to Statewide pater-
nity establishment and to overall performance in child sup-
port enforcement.
‘‘(2) STANDARDS.—(A) IN GENERAL.—The Sec-
retary shall specify in regulations—
‘‘(i) the levels of accomplishment, and rates of
improvement as alternatives to such levels, which
States must attain to qualify for incentive adjust-
ments under this section; and
‘‘(ii) the amounts of incentive adjustment that
shall be awarded to States achieving specified ac-
216
complishment or improvement levels, which amounts
shall be graduated, ranging up to—
‘‘(I) 5 percentage points, in connection
with Statewide paternity establishment; and
‘‘(II) 10 percentage points, in connection
with overall performance in child support en-
forcement.
‘‘(B) LIMITATION.—In setting performance stand-
ards pursuant to subparagraph (A)(i) and adjustment
amounts pursuant to subparagraph (A)(ii), the Secretary
shall ensure that the aggregate number of percentage
point increases as incentive adjustments to all States do
not exceed such aggregate increases as assumed by the
Secretary in estimates of the cost of this section as of
June 1994, unless the aggregate performance of all States
exceeds the projected aggregate performance of all States
in such cost estimates.
‘‘(3) DETERMINATION
OF
INCENTIVE
ADJUST-
MENT.—The Secretary shall determine the amount (if
any) of incentive adjustment due each State on the basis
of the data submitted by the State pursuant to section
454(15)(B) concerning the levels of accomplishment (and
rates of improvement) with respect to performance indica-
tors specified by the Secretary pursuant to this section.
217
‘‘(4) FISCAL YEAR SUBJECT TO INCENTIVE ADJUST-
MENT.—The total percentage point increase determined
pursuant to this section with respect to a State program
in a fiscal year shall apply as an adjustment to the appli-
cable percent under section 455(a)(2) for payments to
such State for the succeeding fiscal year.
‘‘(b) MEANING OF TERMS.—For purposes of this sec-
tion—
‘‘(1) the term ‘Statewide paternity establish-
ment percentage’ means, with respect to a fiscal
year, the ratio (expressed as a percentage) of—
‘‘(A) the total number of out-of-wedlock
children in the State under one year of age for
whom paternity is established or acknowledged
during the fiscal year, to
‘‘(B) the total number of children born out
of wedlock in the State during such fiscal year;
and
‘‘(2) the term ‘overall performance in child sup-
port enforcement’ means a measure or measures of
the effectiveness of the State agency in a fiscal year
which takes into account factors including—
‘‘(A) the percentage of cases requiring a
child support order in which such an order was
established;
218
‘‘(B) the percentage of cases in which child
support is being paid;
‘‘(C) the ratio of child support collected to
child support due; and
‘‘(D) the cost-effectiveness of the State
program, as determined in accordance with
standards established by the Secretary in regu-
lations.’’.
(b) TITLE IV–D PAYMENT ADJUSTMENT.—Section
455(a)(2), as amended by section 611, is further amend-
ed—
(1) by striking the period at the end of sub-
paragraph (C)(ii) and inserting a period; and
(2) by adding after and below subparagraph
(C), flush with the left margin of the subsection, the
following:
‘‘increased by the incentive adjustment factor (if any) de-
termined by the Secretary pursuant to section 458.’’.
(c) CONFORMING AMENDMENTS.—Section 454(22) is
amended—
(1) by striking ‘‘incentive payments’’ the first
place it appears and inserting ‘‘incentive adjust-
ments’’; and
(2) by striking ‘‘any such incentive payments
made to the State for such period’’ and inserting
219
‘‘any increases in Federal payments to the State re-
sulting from such incentive adjustments’’.
(d) CALCULATION OF IV–D PATERNITY ESTABLISH-
MENT PERCENTAGE.—(1) Section 452(g) is amended in
paragraph (1), in the matter preceding subparagraph (A),
by inserting ‘‘its overall performance in child support en-
forcement is satisfactory (as defined in section 458(b) and
regulations of the Secretary), and’’ after ‘‘1994,’’.
(2) Section 452(g)(2) is amended—
(A) in subparagraph (A), in the matter preced-
ing clause (i)—
(i) by striking ‘‘paternity establishment
percentage’’ and inserting ‘‘IV–D paternity es-
tablishment percentage’’; and
(ii) by striking ‘‘(or all States, as the case
may be)’’;
(B) in subparagraph (A)(i), by striking ‘‘during
the fiscal year’’;
(C) in subclause (I) of subparagraph (A)(ii), by
striking ‘‘as of the end of the fiscal year’’ and insert-
ing ‘‘in the fiscal year or, at the option of the State,
as of the end of such year’’;
(D) in subclause (II) of subparagraph (A)(ii),
by striking ‘‘or (E) as of the end of the fiscal year’’
220
and inserting ‘‘in the fiscal year or, at the option of
the State, as of the end of such year’’;
(E) in subparagraph (A)(iii)—
(i) by striking ‘‘during the fiscal year’’;
and
(ii) by striking ‘‘and’’ at the end; and
(F) in the matter following subparagraph (A)—
(i) by striking ‘‘who were born out of wed-
lock during the immediately preceding fiscal
year’’ and inserting ‘‘born out of wedlock’’;
(ii) by striking ‘‘such preceding fiscal
year’’ both places it appears and inserting ‘‘the
preceding fiscal year’’; and
(iii) by striking ‘‘or (E)’’ the second place
it appears.
(3) Section 452(g)(3) is amended—
(A) by striking subparagraph (A) and redesig-
nating subparagraphs (B) and (C) as subparagraphs
(A) and (B), respectively;
(B) in subparagraph (A), as redesignated, by
striking ‘‘the percentage of children born out-of-wed-
lock in the State’’ and inserting ‘‘the percentage of
children in the State who are born out of wedlock
or for whom support has not been established’’; and
(C) in subparagraph (B), as redesignated—
221
(i) by inserting ‘‘and overall performance
in child support enforcement’’ after ‘‘paternity
establishment percentages’’; and
(ii) by inserting ‘‘and securing support’’
before the period.
(e) TITLE IV–A PAYMENT REDUCTION.—Section
403 is amended—
(1) in subsection (a), by striking ‘‘1958—’’ and
inserting ‘‘1958—’’ (subject to subsection (h))—’’;
(2) in subsection (h), by striking all that pre-
cedes paragraph (3) and inserting the following:
‘‘(h)(1) If the Secretary finds, with respect to a State
program under this part in a fiscal year beginning on or
after October 1, 1996—
‘‘(A)(i) on the basis of data submitted by a
State pursuant to section 454(15)(B), that the State
program in such fiscal year failed to achieve the IV–
D paternity establishment percentage (as defined in
section 452(g)(2)(A)) or the appropriate level of
overall performance in child support enforcement (as
defined in section 458(b)(2)), or to meet other per-
formance measures that may be established by the
Secretary, or
‘‘(ii) on the basis of an audit or audits of such
State 
data 
conducted 
pursuant 
to 
section
222
452(a)(4)(C), that the State data submitted pursu-
ant to section 454(15)(B) is incomplete or unreli-
able; and
‘‘(B) that, with respect to the succeeding fiscal
year—
‘‘(i) the State failed to take sufficient cor-
rective action to achieve the appropriate per-
formance levels as described in subparagraph
(A)(i), or
‘‘(ii) the data submitted by the State pur-
suant to section 454(15)(B) is incomplete or
unreliable,
the amounts otherwise payable to the State under this
part for quarters following the end of such succeeding fis-
cal year, prior to quarters following the end of the first
quarter throughout which the State program is in compli-
ance with such performance requirement, shall be reduced
by the percentage specified in paragraph (2).
‘‘(2) The reductions required under paragraph (1)
shall be—
‘‘(A) not less than one nor more than two per-
cent, or
‘‘(B) not less than two nor more than three
percent, if the finding is the second consecutive find-
ing made pursuant to paragraph (1), or
223
‘‘(C) not less than three nor more than five per-
cent, if the finding is the third or a subsequent con-
secutive such finding.’’; and
‘‘(3) In subsection (h)(3), by striking ‘‘not in full
compliance’’ and all that follows and inserting ‘‘deter-
mined as a result of an audit to have submitted incomplete
or unreliable data pursuant to section 454(15)(B), shall
be determined to have submitted adequate data if the Sec-
retary determines that the extent of the incompleteness
or unreliability of the data is of a technical nature which
does not adversely affect the determination of the level of
the State’s performance.’’.
(f) EFFECTIVE DATES.—
(1) 
INCENTIVE
ADJUSTMENTS.—(A) 
The
amendments made by subsections (a), (b), and (c)
shall become effective October 1, 1996, except to the
extent provided in subparagraph (B).
(B) The provisions of section 458 of the Act, as
in effect prior to the enactment of this section, shall
be effective for purposes of incentive payments to
States for fiscal years prior to fiscal year 1998.
(2) PENALTY REDUCTIONS.—(A) The amend-
ments made by subsection (d) shall become effective
with respect to calendar quarters beginning on and
after the date of enactment of this Act.
224
(B) The amendments made by subsection (e)
shall become effective with respect to calendar quar-
ters beginning on and after the date one year after
the date of enactment of this Act.
SEC. 613. FEDERAL AND STATE REVIEWS AND AUDITS.
(a) STATE AGENCY ACTIVITIES.—Section 454 is
amended—
(1) in paragraph (14), by striking ‘‘(14)’’ and
inserting ‘‘(14)(A)’’;
(2) by redesignating paragraph (15) as sub-
paragraph (B) of paragraph (14); and
(3) by inserting after paragraph (14) the fol-
lowing new paragraph:
‘‘(15) provide for—
‘‘(A) a process for annual reviews of and
reports to the Secretary on the State program
under this part, using such standards and pro-
cedures as are required by the Secretary, under
which the State agency will determine the ex-
tent to which such program is in conformity
with applicable requirements with respect to the
operation of State programs under this part
(including the status of complaints filed under
the 
procedure 
required 
under 
paragraph
(12)(B)); and
225
‘‘(B) a process of extracting from the
State automated data processing system and
transmitting to the Secretary data and calcula-
tions concerning the levels of accomplishment
(and rates of improvement) with respect to ap-
plicable performance indicators (including IV–D
paternity establishment percentages and overall
performance in child support enforcement) to
the extent necessary for purposes of sections
452(g) and 458.’’.
(b) FEDERAL
ACTIVITIES.—Section 452(a)(4) is
amended to read as follows:
‘‘(4)(A) review data and calculations transmit-
ted 
by 
State 
agencies 
pursuant 
to 
section
454(15)(B) on State program accomplishments with
respect to performance indicators for purposes of
section 452(g) and 458, and determine the amount
(if any) of penalty reductions pursuant to section
403(h) to be applied to the State;
‘‘(B) review annual reports by State agencies
pursuant to section 454(15)(A) on State program
conformity with Federal requirements; evaluate any
elements of a State program in which significant de-
ficiencies are indicated by such report on the status
of complaints under the State procedure under sec-
226
tion 454(12)(B); and, as appropriate, provide to the
State agency comments, recommendations for addi-
tional or alternative corrective actions, and technical
assistance; and
‘‘(C) conduct audits, in accordance with the
government auditing standards of the United States
Comptroller General—
‘‘(i) at least once every 3 years (or more
frequently, in the case of a State which fails to
meet requirements of this part, or of regula-
tions implementing such requirements, concern-
ing performance standards and reliability of
program data) to assess the completeness, reli-
ability, and security of the data, and the accu-
racy of the reporting systems, used for the cal-
culations of performance indicators specified in
subsection (g) and section 458;
‘‘(ii) of the adequacy of financial manage-
ment of the State program, including assess-
ments of—
‘‘(I) whether Federal and other funds
made available to carry out the State pro-
gram under this part are being appro-
priately expended, and are properly and
fully accounted for; and
227
‘‘(II) whether collections and disburse-
ments of support payments and program
income are carried out correctly and are
properly and fully accounted for; and
‘‘(iii) for such other purposes as the Sec-
retary may find necessary;’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall be effective with respect to calendar
quarters beginning on or after the date one year after en-
actment of this section.
SEC. 614. AUTOMATED DATA PROCESSING REQUIREMENTS.
(a) REVISED REQUIREMENTS.—(1) Section 454(16)
is amended—
(A) by striking ‘‘, at the option of the State,’’;
(B) by inserting ‘‘and operation by the State
agency’’ after ‘‘for the establishment’’;
(C) by inserting ‘‘meeting the requirements of
section 454A’’ after ‘‘information retrieval system’’;
(D) by striking ‘‘in the State and localities
thereof, so as (A)’’ and inserting ‘‘so as’’;
(E) by striking ‘‘(i)’’; and
(F) by striking ‘‘(including’’ and all that follows
and inserting a semicolon.
(2) Part D of title IV is amended by inserting after
section 454 the following new section:
228
‘‘AUTOMATED DATA PROCESSING
‘‘SEC. 454A. (a) IN GENERAL.—In order to meet the
requirements of this section, for purposes of the require-
ment of section 454(16), a State agency shall have in op-
eration a single statewide automated data processing and
information retrieval system which has the capability to
perform the tasks specified in this section, and performs
such tasks with the frequency and in the manner specified
in this part or in regulations or guidelines of the Sec-
retary.
‘‘(b) PROGRAM MANAGEMENT.—The automated sys-
tem required under this section shall perform such func-
tions as the Secretary may specify relating to management
of the program under this part, including—
‘‘(1) controlling and accounting for use of Fed-
eral, State, and local funds to carry out such pro-
gram; and
‘‘(2) maintaining the data necessary to meet
Federal reporting requirements on a timely basis.
‘‘(c) CALCULATION
OF
PERFORMANCE
INDICA-
TORS.—In order to enable the Secretary to determine the
incentive and penalty adjustments required by sections
452(g) and 458, the State agency shall—
‘‘(1) use the automated system—
229
‘‘(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).
‘‘(d) INFORMATION INTEGRITY AND SECURITY.—The
State agency shall have in effect safeguards on the integ-
rity, accuracy, and completeness of, access to, and use of
data in the automated system required under this section,
which shall include the following (in addition to such other
safeguards as the Secretary specifies in regulations):
‘‘(1) POLICIES RESTRICTING ACCESS.—Written
policies concerning access to data by State agency
personnel, and sharing of data with other persons,
which—
230
‘‘(A) permit access to and use of data only
to the extent necessary to carry out program re-
sponsibilities;
‘‘(B) specify the data which may be used
for particular program purposes, and the per-
sonnel permitted access to such data; and
‘‘(C) ensure that data obtained or disclosed
for a limited program purpose is not used or
redisclosed for another, impermissible purpose.
‘‘(2) SYSTEMS
CONTROLS.—Systems controls
(such as passwords or blocking of fields) to ensure
strict adherence to the policies specified under para-
graph (1).
‘‘(3) 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.
‘‘(4) TRAINING AND INFORMATION.—The State
agency shall have in effect procedures to ensure that
all personnel (including State and local agency staff
and contractors) who may have access to or be re-
quired to use sensitive or confidential program data
are fully informed of applicable requirements and
231
penalties, and are adequately trained in security pro-
cedures.
‘‘(5) PENALTIES.—The State agency shall have
in effect administrative penalties (up to and includ-
ing dismissal from employment) for unauthorized ac-
cess to, or disclosure or use of, confidential data.’’.
(3) 
IMPLEMENTATION
TIMETABLE.—Section
454(24) is amended to read as follows:
‘‘(24) provide that the State will have in effect
an automated data processing and information re-
trieval system—
‘‘(A) by October 1, 1995, meeting all re-
quirements of this part which were enacted on
or before the date of enactment of the Family
Support Act of 1988; and
‘‘(B) by October 1, 1998, meeting all re-
quirements of this part enacted on or before the
date of enactment of the Work and Responsibil-
ity Act of 1994 (but this provision shall not be
construed to alter earlier deadlines specified for
elements of such system);’’.
(b) SPECIAL FEDERAL MATCHING RATE FOR DE-
VELOPMENT COSTS OF AUTOMATED SYSTEMS.—Section
455(a) is amended—
(1) in paragraph (1)(B)—
232
(A) by striking ‘‘90 percent’’ and inserting
‘‘the percent specified in paragraph (3)’’;
(B) by striking ‘‘so much of’’; and
(C) by striking ‘‘which the Secretary’’ and
all that follows and inserting ‘‘, and’’; and
(2) by adding at the end the following new
paragraph:
‘‘(3)(A) The Secretary shall pay to each State, for
each quarter in fiscal year 1995, 90 percent of so much
of State expenditures described in subparagraph (1)(B) as
the Secretary finds are for a system meeting the require-
ments specified in section 454(16), or meeting such re-
quirements without regard to clause (D) thereof.
‘‘(B)(i) The Secretary shall pay to each State, for
each quarter in fiscal years 1996 through 2000, the per-
centage specified in clause (ii) of so much of State expend-
itures described in subparagraph (1)(B) as the Secretary
finds are for a system meeting the requirements specified
in section 454(16) and 454A, subject to clause (iii).
‘‘(ii) The percentage specified in this clause, for pur-
poses of clause (i), is the higher of—
‘‘(I) 80 percent, or
‘‘(II) the percentage otherwise applicable to
Federal payments to the State under subparagraph
(A) (as adjusted in pursuant to section 458).
233
‘‘(iii) Notwithstanding any other provision of this sec-
tion, the total amount payable by the Secretary with re-
spect to expenditures during fiscal years specified in clause
(i) shall not exceed $260,000,000, to be distributed among
the States, and to be made available at such time or times
over the five-year period, as is provided in regulations is-
sued by the Secretary, taking into account the relative size
of State caseloads and the level of automation needed to
meet the requirements of this part, and payments under
clause (i) shall be made to a State at such times and in
such a manner as provided in the advance planning docu-
ment approved under section 452(d).’’.
(c) CONFORMING AMENDMENT.—Section 123(c) of
the Family Support Act of 1988 is repealed.
(d) ADDITIONAL PROVISIONS.—For additional provi-
sions of section 454A, as added by subsection (a), see sec-
tions 621, 622, and 636 of this Act.
SEC. 615. DIRECTOR OF CSE PROGRAM; TRAINING AND
STAFFING.
(a) REPORTING TO SECRETARY.—Section 452(a) is
amended, in the matter preceding paragraph (1), by strik-
ing ‘‘directly’’.
(b) TRAINING
PROGRAM.—Section 452(a)(7) is
amended by striking ‘‘paternity;’’ and inserting ‘‘pater-
nity, through activities including—
234
‘‘(A) development of a core curriculum and
training standards to be used by States in the
development of State-specific training guides;
and
‘‘(B) development of a national training
program for directors of State programs under
this part;’’.
(c) STATE PLAN REQUIREMENT.—Section 454, as
amended by sections 602 and 604, is further amended—
(1) by striking ‘‘and’’ at the end of paragraph
(25);
(2) by striking the period at the end of para-
graph (26) and inserting ‘‘; and’’; and
(3) by adding after paragraph (26) the follow-
ing new paragraph:
‘‘(27) provide that the State agency will develop
and implement a training program which—
‘‘(A) is consistent with the national train-
ing standards and core curriculum developed by
the Secretary pursuant to section 452(a)(7),
and uses a State-specific training guide incor-
porating such core curriculum;
‘‘(B) provides for initial and ongoing train-
ing of all staff (including State and local agency
staff and contractors) of the program under
235
this part, including annual training for case
workers and special training when significant
changes are made in statutes, regulations, poli-
cies, or procedures; and
‘‘(C) may provide (subject to approval by
the Secretary) for appropriate training of other
persons with responsibilities relating to the im-
plementation of the State program under this
part (including staff administering programs
under part A, part E, title XIX, and other re-
lated and complementary programs; judges and
other staff of judicial and administrative tribu-
nals; law enforcement personnel; staff of social
services organizations; and the private bar.’’.
(d) STAFFING STUDIES.—(1) SCOPE OF STUDY.—
The Secretary of Health and Human Services shall, di-
rectly or by contract, conduct studies of the staffing of
each State child support enforcement program under title
IV–D of the Act. Such studies shall include a review of
the staffing needs created by requirements for automated
data processing, maintenance of a central case registry,
and centralized collections of child support, and of changes
in these needs resulting from changes in such require-
ments.
236
(2) FREQUENCY OF STUDIES.—The Secretary shall
complete the first staffing study required under paragraph
(1) by October 1, 1996, and may conduct additional stud-
ies subsequently at appropriate intervals.
(3) REPORT
TO CONGRESS.—The Secretary shall
submit a report to the Congress stating the findings and
conclusions of each study conducted under this subsection.
SEC. 616. FUNDING FOR SECRETARIAL ASSISTANCE TO
STATE PROGRAMS.
Section 452 is amended by adding at the end the fol-
lowing new subsection:
‘‘(j) FUNDING FOR FEDERAL ACTIVITIES ASSISTING
STATE PROGRAMS.—(1) There shall be available to the
Secretary, from amounts appropriated for fiscal year 1995
and each succeeding fiscal year for payments to States
under this part, the amount specified in paragraph (2) for
the costs to the Secretary for—
‘‘(A) information dissemination and technical
assistance to States, training of State and Federal
staff, staffing studies, and related activities needed
to improve programs (including technical assistance
concerning State automated systems);
‘‘(B) research, demonstration, and special
projects of regional or national significance relating
237
to the operation of State programs under this part;
and
‘‘(C) operation of the Federal parent Locator
Service under section 453 and the National Welfare
Reform Information Clearinghouse under section
453A, to the extent such costs are not recovered
through user fees.
‘‘(2) The amount specified in this paragraph for a
fiscal year is the amount equal to a percentage of the re-
duction in Federal payments to States under part A on
account of child support (including arrearages) collected
in the preceding fiscal year on behalf of children receiving
aid under such part A in such preceding fiscal year (as
determined on the basis of the most recent reliable data
available to the Secretary as of the end of the third cal-
endar quarter following the end of such preceding fiscal
year), equal to—
‘‘(A) 1 percent, for the activities specified in
subparagraphs (A) and (B) of paragraph (1); and
‘‘(B) 2 percent, for the activities specified in
subparagraph (C) of paragraph (1).’’.
SEC. 617. DATA COLLECTION AND REPORTS BY THE SEC-
RETARY.
(a) ANNUAL REPORT TO CONGRESS.—(1) Section
452(a)(10)(A) is amended—
238
(A) by striking ‘‘this part;’’ and inserting ‘‘this
part, including—’’; and
(B) by adding at the end the following indented
clauses:
‘‘(i) the total amount of child support
payments collected as a result of services
furnished during such fiscal year to indi-
viduals receiving services under this part;
‘‘(ii) the cost to the States and to the
Federal Government of furnishing such
services to those individuals; and
‘‘(iii) the number of cases involving
families—
‘‘(I) who became ineligible for aid
under part A during a month in such
fiscal year; and
‘‘(II) with respect to whom a
child support payment was received in
the same month;’’.
(2) Section 452(a)(10)(C) 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’’;
239
(ii) by striking ‘‘cases where the child was
formerly receiving’’ and inserting ‘‘or formerly
received’’;
(iii) 
by 
inserting 
‘‘or 
1912’’ 
after
‘‘471(a)(17)’’; and
(iv) by inserting ‘‘(2)’’ before ‘‘all other’’;
(B) in each of clauses (i) and (ii), by striking
‘‘, and the total amount of such obligations’’;
(C) in clause (iii), by striking ‘‘described in’’
and all that follows and inserting ‘‘in which support
was collected during the fiscal year;’’;
(D) by striking clause (iv);
(E) by redesignating clause (v) as clause (vii),
and inserting after clause (iii) the following new
clauses:
‘‘(iv) the total amount of support col-
lected during such fiscal year and distrib-
uted as current support;
‘‘(v) the total amount of support col-
lected during such fiscal year and distrib-
uted as arrearages;
‘‘(vi) the total amount of support due
and unpaid for all fiscal years; and’’.
(3) Section 452(a)(10)(G) is amended by striking ‘‘on
the use of Federal courts and’’.
240
(4) Section 452(a)(10) is further amended by striking
the matter following the end of subparagraph (I).
(b) DATA COLLECTION AND REPORTING.—Section
469 is amended—
(1) in subsections (a) and (b), to read as fol-
lows:
‘‘(a) The Secretary shall collect and maintain, on a
fiscal year basis, up-to-date statistics, by State, with re-
spect to services to establish paternity and services to es-
tablish child support obligations, the data specified in sub-
section (b), separately stated, in the case of each such
service, with respect to—
‘‘(1) families (or dependent children) receiving
aid under plans approved under part A (or E); and
‘‘(2) families not receiving such aid.
‘‘(b) The data referred to in subsection (a) are—
‘‘(1) the number of cases in the caseload of the
State agency administering the plan under this part
in which such service is needed; and
‘‘(2) the number of such cases in which the
service has been provided.’’; and
(2) in subsection (c), by striking ‘‘(a)(2)’’ and
inserting ‘‘(b)(2)’’.
241
(c) EFFECTIVE DATE.—The amendments made by
this section shall be effective with respect to fiscal year
1995 and succeeding fiscal years.
PART C—LOCATE AND CASE TRACKING
SEC. 621. CENTRAL STATE AND CASE REGISTRY.
Section 454A, as added by section 614, is further
amended by adding at the end the following new sub-
sections:
‘‘(e) CENTRAL
CASE
REGISTRY.—(1) IN
GEN-
ERAL.—The automated system required under this section
shall perform the functions, in accordance with the provi-
sions of this subsection, of a single central registry con-
taining records with respect to each case in which services
are being provided by the State agency (including, on and
after October 1, 1997, each order specified in section
466(a)(12)), using such standardized data elements (such
as names, social security numbers or other uniform identi-
fication numbers, dates of birth, and case identification
numbers), and containing such other information (such as
information on case status) as the Secretary may require.
‘‘(2) PAYMENT RECORDS.—Each case record in the
central registry shall include a record of—
‘‘(A) the amount of monthly (or other periodic)
support owed under the support order, and other
242
amounts due or overdue (including arrears, interest
or late payment penalties, and fees);
‘‘(B) the date on which the support obligation
will terminate under such order;
‘‘(C) all child support and related amounts col-
lected (including such amounts as fees, late payment
penalties, and interest on arrearages); and
‘‘(D) the distribution of such amounts collected.
‘‘(3) UPDATING AND MONITORING.—The State agen-
cy shall promptly establish and maintain, and regularly
monitor, case records in the registry required by this sub-
section, on the basis of—
‘‘(A) information on administrative actions and
administrative and judicial proceedings and orders
relating to paternity and support;
‘‘(B) information obtained from matches with
Federal, State, or local data sources;
‘‘(C) information on support collections and dis-
tributions; and
‘‘(D) any other relevant information.
‘‘(f) DATA MATCHES AND OTHER DISCLOSURES OF
INFORMATION.—The automated system required under
this section shall have the capacity, and be used by the
State agency, to extract data at such times, and in such
standardized format or formats, as may be required by
243
the Secretary, and to share and match data with, and re-
ceive data from, other data bases and data matching serv-
ices, in order to obtain (or provide) information necessary
to enable the State agency (or Secretary or other State
or Federal agencies) to carry out responsibilities under
this part. Data matching activities of the State agency
shall include at least the following:
‘‘(1) NATIONAL CHILD SUPPORT REGISTRY.—
Furnish to the National Child Support Registry es-
tablished under section 453A (and update as nec-
essary, with information including notice of expira-
tion of orders) minimal information (to be specified
by the Secretary) on each child support case in the
central case registry.
‘‘(2) FEDERAL
PARENT
LOCATOR
SERVICE.—
Exchange data with the Federal Parent Locator
Service for the purposes specified in section 453.
‘‘(3) AFDC AND
MEDICAID
AGENCIES.—Ex-
change data with State agencies (of the State and
of other States) administering the programs under
part A and title XIX, as necessary for the perform-
ance of State agency responsibilities under this part
and under such programs.
‘‘(4) 
INTRA- 
AND
INTERSTATE
DATA
MATCHES.—Exchange data with other agencies of
244
the State, agencies of other States, and interstate
information networks, as necessary and appropriate
to carry out (or assist other States to carry out) the
purposes of this part.’’.
SEC. 622. CENTRALIZED COLLECTION AND DISBURSEMENT
OF SUPPORT PAYMENTS.
(a) STATE PLAN REQUIREMENT.—Section 454, as
previously amended by sections 601, 605, and 615, is fur-
ther amended—
(1) by striking ‘‘and’’ at the end of paragraph
(26);
(2) by striking the period at the end of para-
graph (27) and inserting ‘‘; and’’; and
(3) by adding after paragraph (27) the follow-
ing new paragraph:
‘‘(28) provide that the State agency, on and
after October 1, 1997—
‘‘(A) will operate a centralized, automated
unit for the collection and disbursement of child
support under orders being enforced under this
part, in accordance with section 454B; and
‘‘(B) will have sufficient State staff (con-
sisting of State employees, and (at State op-
tion) contractors reporting directly to the State
agency) to monitor and enforce support collec-
245
tions through such centralized unit, including
carrying out the automated data processing re-
sponsibilities specified in section 454A(g) and
to impose, as appropriate in particular cases,
the administrative enforcement remedies speci-
fied in section 466(c)(1).’’.
(b) ESTABLISHMENT OF CENTRALIZED COLLECTION
UNIT.—Part D of title IV is amended by adding after sec-
tion 454A the following new section:
‘‘CENTRALIZED COLLECTION AND DISBURSEMENT OF
SUPPORT PAYMENTS
‘‘SEC. 454B. (a) IN GENERAL.—In order to meet the
requirement of section 454(28), the State agency must op-
erate a single centralized, automated unit for the collection
and disbursement of support payments, coordinated with
the automated data system required under section 454A,
in accordance with the provisions of this section, which
shall be—
‘‘(1) operated directly by the State agency (or
by two or more State agencies under a regional co-
operative agreement), or by a single contractor re-
sponsible directly to the State agency; and
‘‘(2) used for the collection and disbursement
(including interstate collection and disbursement) of
payments under support orders in all cases being en-
forced by the State pursuant to section 454(4).
246
‘‘(b) REQUIRED PROCEDURES.—The centralized col-
lections unit shall use automated procedures, electronic
processes, and computer-driven technology to the maxi-
mum extent feasible, efficient, and economical, for the col-
lection and disbursement of support payments, including
procedures—
‘‘(1) for receipt of payments from parents, em-
ployers, and other States, and for disbursements to
custodial parents and other obligees, the State agen-
cy, and the State agencies of other States;
‘‘(2) for accurate identification of payments;
‘‘(3) to ensure prompt disbursement of the cus-
todial parent’s share of any payment; and
‘‘(4) to furnish to either parent, upon request,
timely information on the current status of support
payments.’’.
(c) USE OF AUTOMATED SYSTEM.—Section 454A, as
added by section 614 and amended by section 621, is fur-
ther amended by adding at the end the following new sub-
section:
‘‘(g) CENTRALIZED COLLECTION AND DISTRIBUTION
OF SUPPORT PAYMENTS.—The automated system re-
quired under this section shall be used, to the maximum
extent feasible, to assist and facilitate collections and dis-
bursement of support payments through the centralized
247
collections unit operated pursuant to section 454B,
through the performance of functions including at a mini-
mum—
‘‘(1) generation of orders and notices to em-
ployers (and other debtors) for the withholding of
wages (and other income)—
‘‘(A) within two working days after receipt
(from the National Directory of New Hires or
any other source) of notice of and the income
source subject to such withholding; and
‘‘(B) using uniform formats directed by
the Secretary;
‘‘(2) ongoing monitoring to promptly identify
failures to make timely payment; and
‘‘(3) automatic use of enforcement mechanisms
(including mechanisms authorized pursuant to sec-
tion 466(c)) where payments are not timely made.’’.
(d) The amendments made by this section shall be-
come effective on October 1, 1997.
SEC. 623. AMENDMENTS CONCERNING INCOME WITHHOLD-
ING.
(a) MANDATORY INCOME WITHHOLDING.—(1) Sec-
tion 466(a)(1) is amended to read as follows:
‘‘(1) INCOME WITHHOLDING.—(A) UNDER OR-
DERS ENFORCED UNDER THE STATE PLAN.—Proce-
248
dures described in subsection (b) for the withholding
from income of amounts payable as support in cases
subject to enforcement under the State plan.
‘‘(B) UNDER
CERTAIN
ORDERS
PREDATING
CHANGE
IN
REQUIREMENT.—Procedures 
under
which all child support orders issued (or modified)
before October 1, 1995, and which are not otherwise
subject to withholding under subsection (b), shall be-
come subject to withholding from wages as provided
in subsection (b) if arrearages occur, without the
need for a judicial or administrative hearing.’’.
(2) Section 466(a)(8) is repealed.
(3) Section 466(b) is amended—
(A) in the matter preceding paragraph (1),
by striking ‘‘subsection (a)(1)’’ and inserting
‘‘subsection (a)(1)(A)’’;
(B) in paragraph (5), by striking all that
follows ‘‘administered by’’ and inserting ‘‘the
State through the centralized collections unit
established pursuant to section 454B, in ac-
cordance with the requirements of such section
454B.’’;
(C) in paragraph (6)(A)(i)—
249
(i) by inserting ‘‘, in accordance with time-
tables established by the Secretary,’’ after
‘‘must be required’’; and
(ii) by striking ‘‘to the appropriate agency’’
and all that follows and inserting ‘‘to the State
centralized collections unit within 5 working
days after the date such amount would (but for
this subsection) have been paid or credited to
the employee, for distribution in accordance
with this part.’’;
(D) in paragraph (6)(A)(ii), by inserting ‘‘be in
a standard format prescribed by the Secretary, and’’
after ‘‘shall’’; and
(E) in paragraph (6)(D)—
(i) by striking ‘‘employer who discharges’’
and inserting ‘‘employer who—(A) discharges’’;
(ii) by relocating subparagraph (A), as des-
ignated, as an indented subparagraph after and
below the introductory matter;
(iii) by striking the period at the end; and
(iv) by adding after and below subpara-
graph (A) the following new subparagraph:
‘‘(B) fails to withhold support from wages,
or to pay such amounts to the State centralized
250
collections unit in accordance with this sub-
section.’’.
(b) CONFORMING AMENDMENT.—Section 466(c) is
repealed.
(c) DEFINITION
OF TERMS.—The Secretary shall
promulgate regulations providing definitions, for purposes
of title IV–D of the Act, for the term ‘‘income’’ and for
such other terms relating to income withholding under sec-
tion 466(b) of the Act as the Secretary may find it nec-
essary or advisable to define.
SEC. 624. LOCATOR INFORMATION FROM INTERSTATE NET-
WORKS AND LABOR UNIONS.
STATE LAW REQUIREMENT.—Section 466(a), as
amended by section 623, is amended by adding after para-
graph (7) the following new paragraph:
‘‘(8) LOCATOR
INFORMATION.—(A) INTER-
STATE
NETWORKS.—Procedures ensuring that the
State will neither provide funding for, nor use for
any purpose (including any purpose unrelated to the
purposes of this part), any automated interstate net-
work or system used to locate individuals—
‘‘(i) for purposes relating to the use of motor
vehicles; or
‘‘(ii) providing information for law enforcement
purposes (where child support enforcement agencies
251
are otherwise allowed access by State and Federal
law),
unless all Federal and State agencies administering pro-
grams under this part (including the entities established
under sections 453 and 453A) have access to information
in such system or network to the same extent as any other
user of such system or network.
‘‘(B) LABOR UNIONS.—Procedures under which
labor unions, and their hiring halls, must furnish to
the State agency, upon request, with respect to any
union member against whom paternity or a support
obligation is sought to be established or enforced,
such information as the union or hiring hall may
have on such member’s residential address and tele-
phone number, employer’s name, address, and tele-
phone number, and wages and medical insurance
benefits.’’.
SEC. 625. NATIONAL WELFARE REFORM INFORMATION
CLEARINGHOUSE.
(a) Part D of title IV is amended by adding after
section 453 the following new section:
‘‘NATIONAL WELFARE REFORM INFORMATION
CLEARINGHOUSE
‘‘SEC. 453A. (a)(1) In order to assist States in ad-
ministering their State plans under this part and parts
252
A, F, and G, and for the other purposes specified in this
section, the Secretary shall establish and operate a Na-
tional Welfare Reform Information Clearinghouse, per-
forming the functions and meeting the requirements speci-
fied in this section, and containing the registries and di-
rectory specified in paragraph (2).
‘‘(2) COMPONENTS SPECIFIED.—The registries and
directory specified in this paragraph, for purposes of para-
graph (1), are—
‘‘(A) the National Child Support Registry es-
tablished pursuant to subsection (b);
‘‘(B) the National Directory of New Hires es-
tablished pursuant to subsection (c);
‘‘(C) the Federal Parent Locater Service estab-
lished pursuant to section 453; and
‘‘(D) the National Welfare Receipt Registry es-
tablished pursuant section 411.
‘‘(3) USE OF TERM.—For purposes of this section,
references to registries maintained under this section shall
be considered to include the National Directory of New
Hires and the Federal Parent Locator Service.
‘‘(b) NATIONAL CHILD SUPPORT REGISTRY.—(1) IN
GENERAL.—The Secretary shall establish by October 1,
1997, and maintain thereafter, an automated registry, to
be known as the National Child Support Registry, contain-
253
ing minimal information (in accordance with paragraph
(2)) on each case in each State central case registry main-
tained pursuant to section 454A(e), as furnished (and reg-
ularly updated), pursuant to section 454A(f), by State
agencies administering programs under this part.
‘‘(2) CASE INFORMATION.—The case information re-
quired to be furnished pursuant to this subsection, as
specified by the Secretary, shall include sufficient informa-
tion (including names, social security numbers or other
uniform identification numbers, and State case identifica-
tion numbers) to identify the individuals who owe or are
owed support (or with respect to or on behalf of whom
support obligations are sought to be established), and the
State or States which have established or modified, or are
enforcing or seeking to establish, such an order.
‘‘(c) NATIONAL DIRECTORY OF NEW HIRES.—(1) IN
GENERAL.—The Secretary shall establish by October 1,
1997, and maintain thereafter, an automated directory, to
be known as the National Directory of New Hires, con-
taining—
‘‘(A) information supplied by employers on each
newly hired individual, in accordance with paragraph
(2); and
254
‘‘(B) information supplied by State agencies ad-
ministering State unemployment compensation laws,
in accordance with paragraph (3).
‘‘(2) EMPLOYER INFORMATION.—(A) INFORMATION
REQUIRED.—Subject to subparagraph (D), each employer
shall furnish to the Secretary, for inclusion in the direc-
tory under this subsection, not later than 10 days after
the date (on or after October 1, 1997) on which the em-
ployer hires a new employee (as defined in subparagraph
(C)), a report containing the name, date of birth, and so-
cial security number of such employee, and the employer
identification number of the employer.
‘‘(B) REPORTING METHOD AND FORMAT.—The Sec-
retary shall provide for transmission of the reports re-
quired under subparagraph (A) using formats and meth-
ods which minimize the burden on employers, which shall
include—
‘‘(i) automated or electronic transmission of
such reports;
‘‘(ii) transmission by regular mail; and
‘‘(iii) transmission of a copy of the form re-
quired for purposes of compliance with section 3402
of the Internal Revenue Code of 1986.
‘‘(C) EMPLOYEE DEFINED.—For purposes of this
paragraph, the term ‘‘employee’’—
255
‘‘(i) means (subject to clause (ii)) any individual
subject to the requirement of section 3402(f)(2) of
the Internal Revenue Code of 1986; and
‘‘(ii) does not include an employee of a Federal
or State agency performing law enforcement func-
tions, or of a Federal agency performing intelligence
or counterintelligence functions, where the head of
such agency has determined that reporting pursuant
to this paragraph with respect to such employee
could endanger the safety of the employee or com-
promise an ongoing investigation or intelligence mis-
sion.
‘‘(D) PAPERWORK REDUCTION REQUIREMENT.—As
required by the information resources management poli-
cies published by the Director of the Office of Manage-
ment and Budget pursuant to 44 U.S.C. 3504(b)(1), the
Secretary, in order to minimize the cost and reporting bur-
den on employers, shall not require reporting pursuant to
this paragraph if an alternative reporting mechanism can
be developed that either relies on existing Federal or State
reporting or enables the Secretary to collect the needed
information in a more cost-effective and equally expedi-
tious manner, taking into account the reporting costs on
employers.
256
‘‘(E) CIVIL MONEY PENALTY ON NONCOMPLYING
EMPLOYERS.—(i) Any employer that fails to make a time-
ly report in accordance with this paragraph with respect
to an individual shall be subject to a civil money penalty,
for each calendar year in which the failure occurs, of the
lesser of $500 or 1 percent of the wages or other com-
pensation paid by such employer to such individual during
such calendar year.
‘‘(ii) Subject to clause (iii), the provisions of section
1128A (other than subsections (a) and (b) thereof) shall
apply to a civil money penalty under clause (i) in the same
manner as they apply to a civil money penalty or proceed-
ing under section 1128A(a).
‘‘(iii) Any employer with respect to whom a penalty
under this subparagraph is upheld after an administrative
hearing shall be liable to pay all costs of the Secretary
with respect to such hearing.
‘‘(3) EMPLOYMENT SECURITY INFORMATION.—(A)
REPORTING REQUIREMENT.—Each State agency admin-
istering a State unemployment compensation law approved
by the Secretary of Labor under the Federal Unemploy-
ment Tax Act shall furnish to the Secretary of Health and
Human Services extracts of the reports to the Secretary
of Labor concerning the wages and unemployment com-
257
pensation paid to individuals required under section
303(a)(6), in accordance with subparagraph (B).
‘‘(B) MANNER OF COMPLIANCE.—The extracts re-
quired under subparagraph (A) shall be furnished to the
Secretary of Health and Human Services on a quarterly
basis, with respect to calendar quarters beginning on and
after October 1, 1995, by such dates, in such format, and
containing such information as required by that Secretary
in regulations.
‘‘(d) DATA MATCHES AND OTHER DISCLOSURES.—
(1) VERIFICATION BY SOCIAL SECURITY ADMINISTRA-
TION.—(A) The Secretary shall transmit data on individ-
uals and employers in the registries maintained under this
section to the Social Security Administration to the extent
necessary for verification in accordance with subparagraph
(B).
‘‘(B) The Social Security Administration shall verify
the accuracy of, correct or supply to the extent necessary
and feasible, and report to the Secretary, the following in-
formation in data supplied by the Secretary pursuant to
subparagraph (A):
‘‘(i) the name, social security number, and birth
date of each individual; and
‘‘(ii) the employer identification number of each
employer.
258
‘‘(2) CHILD SUPPORT LOCATOR MATCHES.—For the
purpose of locating individuals for purposes of paternity
establishment and establishment and enforcement of child
support, the Secretary shall—
‘‘(A) match data in the New Hire Directory
against data in the Child Support Registry not less
often than every 2 working days; and
‘‘(B) report information obtained from such a
match to concerned State agencies operating pro-
grams under this part not later than 2 working days
after such match.
‘‘(3) DATA MATCHES AND DISCLOSURES OF DATA IN
ALL REGISTRIES.—(A) FOR TITLE IV PROGRAM PUR-
POSES.—The Secretary shall—
‘‘(i) perform matches of data in each registry
maintained under this section against data in each
other such registry (other than the matches required
pursuant to paragraph (1)), and report information
resulting from such matches to State agencies oper-
ating programs under this part and parts A, F, and
G; and
‘‘(ii) disclose data in such registries to such
State agencies—
259
to the extent, and with the frequency, that the Secretary
determines to be effective in assisting such States to carry
out their responsibilities under such programs.
‘‘(B) FOR INCOME ELIGIBILITY VERIFICATION SYS-
TEM.—The Secretary shall disclose data in the registries
maintained under this section to the programs specified
in section 1137(b), to the extent necessary to enable such
programs to meet requirements for an income eligibility
verification system under such section 1137.
‘‘(C) TO SOCIAL SECURITY ADMINISTRATION.—The
Secretary shall disclose data in the registries maintained
under this section to the Social Security Administration—
‘‘(i) for the purpose of determining the accu-
racy of payments under the supplemental security
income program under title XVI; or
‘‘(ii) for use in connection with benefits under
title II.
‘‘(4) OTHER DISCLOSURES OF NEW HIRE DATA.—
The Secretary shall disclose data in the New Hire Direc-
tory under subsection (c)—
‘‘(A) to the Secretary of the Treasury for pur-
poses directly connected with—
‘‘(i) the administration of the earned in-
come tax credit under section 32 of the Internal
Revenue Code of 1986, or the advance payment
260
of such credit under section 3507 of such Code;
or
‘‘(ii) verification of a claim with respect to
employment in an individual tax return; and
‘‘(B) to State agencies operating employment
security and workers compensation programs, for
the purpose of assisting such agencies to determine
the allowability of claims for benefits under such
programs.
‘‘(5) DISCLOSURES FOR RESEARCH PURPOSES.—The
Secretary is authorized to disclose data in registries main-
tained under this section for research purposes found by
the Secretary to be likely to contribute to achieving the
purposes of this part or part A, F, or G, but without per-
sonal identifiers.
‘‘(f) FEES.—(1) FOR SSA VERIFICATION.—The Sec-
retary shall reimburse the Commissioner of Social Secu-
rity, at a rate negotiated between the Secretary and the
Commissioner, the costs incurred by the Commissioner in
performing the verification services specified in subsection
(d).
‘‘(2) FOR INFORMATION FROM SESAS.—The Sec-
retary shall reimburse costs incurred by State employment
security agencies in furnishing data as required by sub-
section (c)(3), at rates which the Secretary determines to
261
be reasonable (which rates shall not include payment for
the costs of obtaining, compiling, or maintaining such
data).
‘‘(3) FOR INFORMATION FURNISHED TO STATE AND
FEDERAL AGENCIES.—State and Federal agencies receiv-
ing data or information from the Secretary pursuant to
this section shall reimburse the costs incurred by the Sec-
retary in furnishing such data or information, at rates
which the Secretary determines to be reasonable (which
rates shall include payment for the costs of obtaining, veri-
fying, maintaining, and matching such data or informa-
tion).
‘‘(g) RESTRICTION ON DISCLOSURE AND USE.—Data
in registries maintained pursuant to this section, and in-
formation resulting from matches using data maintained
in such registries, shall not be used or disclosed except
as specifically provided in this section.
‘‘(h) RETENTION OF DATA.—Data in registries main-
tained pursuant to this title, and data resulting from
matches performed pursuant to this section, shall be re-
tained for such period (determined by the Secretary) as
appropriate for the data uses specified in this section.
‘‘(i) INFORMATION INTEGRITY AND SECURITY.—The
Secretary shall establish and implement safeguards with
262
respect to the entities established under this section de-
signed to—
‘‘(1) ensure the accuracy and completeness of
information in the system; and
‘‘(2) restrict access to confidential information
in the registries to authorized persons, and restrict
use of such information to authorized purposes.
‘‘(j) LIMIT ON LIABILITY.—The Secretary shall not
be liable to either a State or an individual for inaccurate
information provided to a registry maintained under this
section and disclosed by the Secretary in accordance with
this section.’’.
(b) CONFORMING AMENDMENTS.—
(1) TO TITLE IV–D.—Section 454(8) is amend-
ed—
(A) by striking ‘‘, and’’ at the end of sub-
paragraph (A);
(B) in subparagraph (B), to read as fol-
lows:
‘‘(B) the Federal Parent Locator Service
established under section 453; and’’; and
(C) by adding at the end the following new
subparagraph:
263
‘‘(C) the National Welfare Reform Infor-
mation Clearinghouse established under section
453A;’’.
(2) TO FEDERAL UNEMPLOYMENT TAX ACT.—
26 U.S.C. 3304 is amended in paragraph (16)—
(A) by striking ‘‘Secretary of Health, Edu-
cation, and Welfare’’ each place it appears and
inserting ‘‘Secretary of Health and Human
Services’’;
(B) in subparagraph (B), by striking
‘‘such information’’ and all that follows and in-
serting ‘‘information furnished under subpara-
graph (A) or (B) is used only for the purposes
authorized under such subparagraph;’’;
(C) by striking ‘‘and’’ at the end of sub-
paragraph (A);
(D) by redesignating subparagraph (B) as
subparagraph (C); and
(E) by inserting after subparagraph (A)
the following new subparagraph:
‘‘(B) wage and unemployment compensa-
tion information contained in the records of
such agency shall be furnished to the Secretary
of Health and Human Services (in accordance
with regulations promulgated by such Sec-
264
retary) as necessary for the purposes of the Na-
tional Directory of New Hires established under
section 453A(b) of the Social Security Act,
and’’.
(3) TO STATE GRANT PROGRAM UNDER TITLE
III OF THE SOCIAL SECURITY ACT.—Section 303(a)
is amended—
(A) by striking ‘‘and’’ at the end of para-
graph (8);
(B) by striking the period at the end of
paragraph (9) and inserting ‘‘; and’’; and
(C) by adding after paragraph (9) the fol-
lowing new paragraph:
‘‘(10) The making of quarterly electronic re-
ports, at such dates, in such format, and containing
such information, as required by the Secretary of
Health 
and 
Human 
Services 
under 
section
453A(b)(3), and compliance with such provisions as
such Secretary may find necessary to ensure the cor-
rectness and verification of such reports.’’.
SEC. 626. EXPANDED LOCATE AUTHORITY.
(a) EXPANDED AUTHORITY TO LOCATE INDIVIDUALS
AND ASSETS.—Section 453 is amended—
(1) in subsection (a), by striking all that follows
‘‘subsection (c))’’ and inserting the following:
265
‘‘, for the purpose of establishing, setting the amount of,
or enforcing child support obligations—
‘‘(1) information on, or facilitating the discov-
ery of, the location of any individual—
‘‘(A) who is under an obligation to pay
child support;
‘‘(B) against whom such an obligation is
sought; or
‘‘(C) to whom such an obligation is owed,
including such individual’s social security num-
ber (or numbers), most recent residential ad-
dress, and the name, address, and employer
identification number of such individual’s em-
ployer; and
‘‘(2) information on the individual’s wages (or
other income) from, and benefits of, employment (in-
cluding rights to or enrollment in group health care
coverage); and
‘‘(3) information on the type, status, location,
and amount of any assets of, or debts owed by or
to, any such individual.’’; and
(2) in subsection (b)—
(A) in the matter preceding paragraph (1),
by striking ‘‘social security’’ and all that follows
266
through ‘‘absent parent’’ and inserting ‘‘infor-
mation specified in subsection (a)’’; and
(B) in paragraph (2), by inserting before
the period ‘‘, or from any consumer reporting
agency (as defined in section 603(f) of the Fair
Credit Reporting Act (15 U.S.C. 1681a(f))’’;
(3) in subsection (e)(1), by inserting before the
period ‘‘, or by consumer reporting agencies’’.
(b) REIMBURSEMENT FOR DATA FROM FEDERAL
AGENCIES.—Section 453(e)(2) is amended in the fourth
sentence by inserting before the period ‘‘in an amount
which the Secretary determines to be reasonable payment
for the data exchange (which amount shall not include
payment for the costs of obtaining, compiling, or main-
taining the data)’’.
(c) ACCESS TO CONSUMER REPORTS UNDER FAIR
CREDIT REPORTING ACT.—(1) Section 608 of the Fair
Credit Reporting Act (15 U.S.C. 1681f) is amended—
(A) by striking ‘‘, limited to’’ and inserting ‘‘to
a 
governmental 
agency 
(including 
the 
entire
consumer report, in the case of a Federal, State, or
local agency administering a program under part D
of title IV of the Social Security Act, and limited
to’’; and
267
(B) by striking ‘‘employment, to a govern-
mental agency’’ and inserting ‘‘employment, in the
case of any other governmental agency)’’.
(2) REIMBURSEMENT FOR REPORTS BY STATE AGEN-
CIES AND CREDIT BUREAUS.—Section 453 is amended by
adding at the end the following new subsection:
‘‘(g) The Secretary is authorized to reimburse costs
to State agencies and consumer credit reporting agencies
the costs incurred by such entities in furnishing informa-
tion requested by the Secretary pursuant to this section
in an amount which the Secretary determines to be rea-
sonable payment for the data exchange (which amount
shall not include payment for the costs of obtaining, com-
piling, or maintaining the data).’’.
(d) DISCLOSURE OF TAX RETURN INFORMATION.—
(1) Section 6103(1)(6)(A)(ii) of the Internal Revenue
Code of 1986 (26 U.S.C. 6103(1)(6)(A)(ii) is amended by
striking ‘‘, but only if’’ and all that follows and inserting
a period.
(2) Section 6103(1)(8)(A) of the Internal Revenue
Code of 1986 (26 U.S.C. 6103(1)(8)(A)) is amended by
inserting ‘‘Federal,’’ before ‘‘State or local’’.
(e) TECHNICAL AMENDMENTS.—
268
(1) Sections 452(a)(9), 453(a), 453(b), 463(a),
and 463(e) are each amended by inserting ‘‘Fed-
eral’’ before ‘‘Parent’’ each place it appears.
(2) Section 453 is amended in the heading by
adding ‘‘FEDERAL’’ before ‘‘PARENT’’.
SEC. 627. STUDIES AND DEMONSTRATIONS CONCERNING
LOCATOR ACTIVITIES.
(a) STUDIES.—The Secretary of Health and Human
Services shall study, and report and make recommenda-
tions to the Congress concerning—
(1) whether access to information available
through the Federal Parent Locator Service under
section 453 of the Social Security Act should be af-
forded to noncustodial parents seeking to locate
their children and, if so, whether custodial parents
at risk of harm by such noncustodial parents could
be adequately protected; and
(2) the feasibility, implications, and costs of es-
tablishing and operating electronic data interchanges
between such Service and major consumer credit re-
porting bureaus.
(b) DEMONSTRATIONS.—The Secretary shall make
grants to States, from funds available under section 452(j)
of the Social Security Act, for demonstrations designed to
test the utility of automated data exchanges with State
269
data bases that have the potential to improve the States’
effectiveness in locating individuals and resources for pur-
poses of establishing paternity and establishing and en-
forcing support obligations.
SEC. 628. USE OF SOCIAL SECURITY NUMBERS.
(a) STATE LAW REQUIREMENT.—Section 466(a) is
amended by adding at the end the following new para-
graph:
‘‘(13) 
SOCIAL
SECURITY
NUMBERS
RE-
QUIRED.—Procedures requiring the recording of so-
cial security numbers—
‘‘(A) of both parties on marriage licenses
and divorce decrees; and
‘‘(B) of both parents, on birth records and
child support and paternity orders.’’.
(b) CLARIFICATION OF FEDERAL POLICY.—Section
205(c)(2)(C)(ii) is amended by striking the third sentence
and inserting ‘‘This clause shall not be considered to au-
thorize disclosure of such numbers except as provided in
the preceding sentence.’’.
Part D—Streamlining and Uniformity of Procedures
SEC. 635. ADOPTION OF UNIFORM STATE LAWS.
(a) Section 466(a) is amended by adding at the end
the following new paragraph:
270
‘‘(14) INTERSTATE ENFORCEMENT.—(A) ADOP-
TION OF UIFSA.—Procedures under which the State
adopts in its entirety (with the modifications and ad-
ditions specified in this paragraph) not later than
January 1, 1996, and uses on and after such date,
the Uniform Interstate Family Support Act, as ap-
proved by the National Conference of Commissioners
on Uniform State Laws in August, 1992.
‘‘(B) EXPANDED APPLICATION OF UIFSA.—The
State law adopted pursuant to subparagraph (A)
shall be applied to any case—
‘‘(i) involving an order established or modi-
fied in one State and for which a subsequent
modification is sought in another State; or
‘‘(ii) in which interstate activity is required
to enforce an order.
‘‘(C) LONG-ARM JURISDICTION, BASED ON RES-
IDENCE OF CHILD.—The State law adopted pursu-
ant to subparagraph (A) shall presume that, in the
case where a child meets the criteria for residence in
the State, a tribunal of the State having jurisdiction
over such child has jurisdiction over both parents of
such child, if parentage has been legally established
or acknowledged, or may be presumed under the
laws of the State.
271
‘‘(D) JURISDICTION TO MODIFY ORDERS.—For
purposes of the State law adopted pursuant to sub-
paragraph (A), section 611(a)(1) of such Uniform
Act shall be amended to read as follows:
‘‘ ‘(1) the following requirements are met:
‘‘ ‘(i) the child, the individual obligee, and the
obligor—
‘‘ ‘(I) do not reside in the issuing State;
and
‘‘ ‘(II) either reside in this State or are
subject to the jurisdiction of this State pursu-
ant to section 201; and
‘‘ ‘(ii) (in any case where another State is exer-
cising or seeks to exercise jurisdiction to modify the
order) the conditions of section 204 are met to the
same extent as required for proceedings to establish
orders; or’.
‘‘(E) PARTIES’ OPTION CONCERNING JURISDIC-
TION.—The State law adopted pursuant to subpara-
graph (A) shall allow parties, by agreement, to per-
mit a State that issued an order to retain jurisdic-
tion which the State would otherwise lose under the
provisions of such law.
‘‘(F) SERVICE
OF
PROCESS.—The State law
adopted pursuant to subparagraph (A) shall recog-
272
nize as valid, for purposes of any proceeding subject
to such State law, service of process upon persons
in the State (and proof of such service) by any
means acceptable in another State which is the initi-
ating or responding State in such proceeding.
‘‘(G) 
COOPERATION
BY
EMPLOYERS.—The
State law adopted pursuant to subparagraph (A)
shall provide for the use of procedures (including
sanctions for noncompliance) under which all entities
in the State (including for-profit, nonprofit, and gov-
ernmental employers) are required to provide
promptly, in response to a request by the State
agency of that or any other State administering a
program under this part, information on the employ-
ment, compensation, and benefits of any individual
employed by such entity as an employee or contrac-
tor.’’.
(b) EXPEDITED APPEAL OF CONSTITUTIONAL CHAL-
LENGE.—(1) An appeal may be taken directly to the Su-
preme Court of the United States from any interlocutory
or final judgment, decree, or order issued by a United
States district court ruling upon the constitutionality of
section 466(a)(14)(C) of the Act, as added by subsection
(a).
273
(2) The Supreme Court shall, if it has not previously
ruled on the question, accept jurisdiction over, and ad-
vance on the docket, and expedite to the greatest extent
possible, such appeal. All cases raising such question shall
be consolidated to the maximum extent permissible under
applicable rules of civil procedure.
SEC. 636. STATE LAWS PROVIDING EXPEDITED PROCE-
DURES.
(a) STATE LAW REQUIREMENTS.—Section 466 is
amended—
(1) in subsection (a)(2), in the first sentence, to
read as follows: ‘‘Expedited administrative and judi-
cial procedures (including the procedures specified in
subsection (c)) for establishing paternity and for es-
tablishing, modifying, and enforcing support obliga-
tions.’’; and
(2) by adding after subsection (b) the following
new subsection:
‘‘(c) EXPEDITED PROCEDURES.—(1) ADMINISTRA-
TIVE ACTION BY STATE AGENCY.—Procedures which give
the State agency the authority (and recognize and enforce
the authority of State agencies of other States), without
the necessity of obtaining an order from any other judicial
or administrative tribunal (but subject to due process safe-
guards, including (as appropriate) requirements for notice,
274
opportunity to contest the action, and opportunity for an
appeal on the record to an independent administrative or
judicial tribunal), to take the following actions relating to
establishment or enforcement of orders:
‘‘(A) 
ESTABLISH
OR
MODIFY
SUPPORT
AMOUNT.—To establish the amount of support
awards in all cases in which services are being pro-
vided under this part, and to modify the amount of
such awards under all orders included in the central
case registry established under section 454A(e) (in-
cluding orders entered by a court), in accordance
with the guidelines established under section 467.
‘‘(B) GENETIC
TESTING.—To order genetic
testing for the purpose of paternity establishment as
provided in section 466(a)(5).
‘‘(C) DEFAULT ORDERS.—To enter a default
order, upon a showing of service of process and any
additional showing required by State law—
‘‘(i) establishing paternity, in the case of
any putative father who refuses to submit to ge-
netic testing; and
‘‘(ii) establishing or modifying a support
obligation, in the case of a parent (or other ob-
ligor or obligee) who fails to respond to notice
to appear at a proceeding for such purpose.
275
‘‘(D) SUBPOENAS.—To subpoena any financial
or other information needed to establish, modify, or
enforce an order, and to sanction failure to respond
to any such subpoena.
‘‘(E) ACCESS TO PERSONAL AND FINANCIAL IN-
FORMATION.—To obtain access, subject to safe-
guards on privacy and information security, to the
following records (including automated access, in the
case of records maintained in automated data
bases):
‘‘(i) records of other State and local gov-
ernment agencies, including:
‘‘(I) vital statistics (including records
of marriage, birth, and divorce);
‘‘(II) State and local tax and revenue
records (including information on residence
address, employer, income and assets);
‘‘(III) records concerning real and ti-
tled personal property;
‘‘(IV) records of occupational and pro-
fessional licenses, and records concerning
the ownership and control of corporations,
partnerships, and other business entities;
‘‘(V) employment security records;
276
‘‘(VI) records of agencies administer-
ing public assistance programs;
‘‘(VII) records of the motor vehicle
department; and
‘‘(VIII) corrections records; and
‘‘(ii) certain records held by private enti-
ties, including—
‘‘(I) customer records of public utili-
ties and cable television companies; and
‘‘(II) information (including informa-
tion on assets and liabilities) on individuals
who owe or are owed support (or against
or with respect to whom a support obliga-
tion is sought) held by financial institu-
tions (subject to limitations on liability of
such entities arising from affording such
access).
‘‘(F) INCOME WITHHOLDING.—To order income
withholding in accordance with section 466(a)(1)
and (b).
‘‘(G) CHANGE IN PAYEE.—(In cases where sup-
port is subject to an assignment under section
402(a)(26), 471(a)(17), or 1912, or to a require-
ment to pay through the centralized collections unit
under section 454B) upon providing notice to obligor
277
and obligee, to direct the obligor or other payor to
change the payee to the appropriate government en-
tity.
‘‘(H) SECURE
ASSETS
TO
SATISFY
ARREAR-
AGES.—For the purpose of securing overdue sup-
port—
‘‘(i) to intercept and seize any periodic or
lump-sum payment to the obligor by or through
a State or local government agency, including—
‘‘(I) 
unemployment 
compensation,
workers’ compensation, and other benefits;
‘‘(II) judgments and settlements in
cases under the jurisdiction of the State or
local government; and
‘‘(III) lottery winnings;
‘‘(ii) to attach and seize assets of the obli-
gor held by financial institutions;
‘‘(iii) to attach public and private retire-
ment funds in appropriate cases, as determined
by the Secretary; and
‘‘(iv) to impose liens in accordance with
paragraph (a)(4) and, in appropriate cases, to
force sale of property and distribution of pro-
ceeds.
278
‘‘(I) INCREASE MONTHLY PAYMENTS.—For the
purpose of securing overdue support, to increase the
amount of monthly support payments to include
amounts for arrearages (subject to such conditions
or restrictions as the State may provide).
‘‘(J) SUSPENSION OF DRIVERS’ LICENSES.—To
suspend drivers’ licenses of individuals owing past-
due support, in accordance with subsection (a)(16).
‘‘(2) SUBSTANTIVE AND PROCEDURAL RULES.—The
expedited procedures required under subsection (a)(2)
shall include the following rules and authority, applicable
with respect to all proceedings to established paternity or
to establish, modify, or enforce support orders:
‘‘(A) LOCATOR
INFORMATION; PRESUMPTIONS
CONCERNING NOTICE.—Procedures under which—
‘‘(i) the parties to any paternity or child
support proceedings are required (subject to
privacy safeguards) to file with the tribunal be-
fore entry of an order, and to update as appro-
priate, information on location and identity (in-
cluding social security number, residential and
mailing addresses, telephone number, driver’s li-
cense number, and name, address, and tele-
phone number of employer); and
279
‘‘(ii) in any subsequent child support en-
forcement action between the same parties, the
tribunal shall be authorized, upon sufficient
showing that deligent effort has been made to
ascertain such a party’s current location, to
deem due process requirements for notice and
service of process to be met, with respect to
such party, by delivery to the most recent resi-
dential or employer address so filed pursuant to
clause (i).
‘‘(B) STATEWIDE
JURISDICTION.—Procedures
under which—
‘‘(i) the State agency and any administra-
tive or judicial tribunal with authority to hear
child support and paternity cases exerts state-
wide jurisdiction over the parties, and orders is-
sued in such cases have statewide effect; and
‘‘(ii) (in the case of a State in which orders
in such cases are issued by local jurisdictions)
a case may be transferred between jurisdictions
in the State without need for any additional fil-
ing by the petitioner, or service of process upon
the respondent, to retain jurisdiction over the
parties.’’.
280
(c) EXCEPTIONS
FROM
STATE
LAW
REQUIRE-
MENTS.—Section 466(d) is amended—
(1) by striking ‘‘(d) If’’ and inserting ‘‘(d) EX-
EMPTIONS FROM REQUIREMENTS.—(1) IN GEN-
ERAL.—Subject to paragraph (2), if’’; and
(2) by adding at the end the following new
paragraph:
‘‘(2) NON-EXEMPT REQUIREMENTS.—The Sec-
retary shall not grant an exemption from the re-
quirements of—
‘‘(A) subsection (a)(5) (concerning proce-
dures for paternity establishment);
‘‘(B) subsection (a)(10) (concerning modi-
fication of orders);
‘‘(C) subsection (a)(12) (concerning re-
cording of orders in the central State case reg-
istry);
‘‘(D) subsection (a)(13) (concerning re-
cording of social security numbers);
‘‘(E) subsection (a)(14) (concerning inter-
state enforcement); or
‘‘(F) subsection (c) (concerning expedited
procedures), other than paragraph (1)(A) there-
of (concerning establishment or modification of
support amount).’’.
281
(d) AUTOMATION OF STATE AGENCY FUNCTIONS.—
Section 454A, as added by section 614 and amended by
sections 621 and 622, is further amended by adding at
the end the following new subsection:
‘‘(h) EXPEDITED ADMINISTRATIVE PROCEDURES.—
The automated system required under this section shall
be used, to the maximum extent feasible, to implement the
expedited administrative procedures required under sec-
tion 466(c).’’.
PART E—PATERNITY ESTABLISHMENT
SEC. 640. STATE LAWS CONCERNING PATERNITY ESTAB-
LISHMENT.
(a) STATE LAWS REQUIRED.—Section 466(a)(5) is
amended—
(1) by striking ‘‘(5)’’ and inserting ‘‘(5) PRO-
CEDURES
CONCERNING
PATERNITY
ESTABLISH-
MENT.—’’;
(2) in subparagraph (A)—
(A) by striking ‘‘(A)’’ and inserting ‘‘(A)
ESTABLISHMENT
PROCESS
AVAILABLE
FROM
BEFORE BIRTH UNTIL AGE EIGHTEEN.—’’;
(B) by indenting clause (ii) an additional
unit of indentation from the left margin; and
(C) by adding after and below clause (ii)
the following new clause:
282
‘‘(iii) Procedures which permit the ini-
tiation of proceedings to establish paternity
before the birth of the child concerned.’’;
(3) in subparagraph (B)—
(A) by striking ‘‘(B)’’ and inserting ‘‘(B)
PROCEDURES
CONCERNING
GENETIC
TEST-
ING.—(i)’’;
(B) in clause (i), as redesignated, by in-
serting before the period ‘‘, where such request
is supported by a sworn statement by such
party setting forth facts establishing a reason-
able possibility of the requisite sexual contact’’;
(C) by inserting after and below clause (i)
(as redesignated) the following new clause:
‘‘(ii) Procedures which require the
State agency, in any case in which such
agency orders genetic testing—
‘‘(I) to pay costs of such tests,
subject to recoupment (where the
State so elects) from the putative fa-
ther if paternity is established; and
‘‘(II) to obtain additional testing
in any case where an original test re-
sult is disputed, upon request and ad-
283
vance payment by the disputing
party.’’;
(4) in subparagraph (C), to read as follows:
‘‘(C) VOLUNTARY ACKNOWLEDGMENT PRO-
CEDURE.—Procedures for a simple civil process
for voluntarily acknowledging paternity under
which—
‘‘(i) the benefits, rights and respon-
sibilities of acknowledging paternity are ex-
plained to unwed parents;
‘‘(ii) due process safeguards are af-
forded; and
‘‘(iii) hospitals and other health
care facilities providing inpatient or
outpatient maternity and pediatric
services are required, as a condition of
participation in the State program
under title XIX—
‘‘(I) to explain to unwed parents
the matters specified in clause (i);
‘‘(II) to make available the vol-
untary acknowledgment procedure re-
quired under this subparagraph; and
‘‘(III) (in the case of hospitals
providing maternity services) to have
284
facilities for obtaining blood or other
genetic samples from the mother, pu-
tative father, and child for genetic
testing; to inform the mother and pu-
tative father of the availability of such
testing (at their expense); and to ob-
tain such samples upon request of
both such individuals;’’;
(5) in subparagraphs (D) and (E), to read as
follows:
‘‘(D) LEGAL
STATUS
OF
ACKNOWLEDG-
MENT.—Procedures under which—
‘‘(i) a voluntary acknowledgment of
paternity creates, at State option, either—
‘‘(I) a conclusive presumption of
paternity, or
‘‘(II) a rebuttable presumption
which becomes a conclusive presump-
tion within one year, unless rebutted
or invalidated by an intervening deter-
mination which reaches a contrary
conclusion;
‘‘(ii) (at State option), notwithstand-
ing clause (i), upon the request of a party,
a determination of paternity based on an
285
acknowledgment may be vacated on the
basis of new evidence, the existence of
fraud, or the best interests of the child;
and
‘‘(iii) a voluntary acknowledgment of
paternity is admissible as evidence of pa-
ternity, and as a basis for seeking a sup-
port order, without requiring any further
proceedings to establish paternity.
‘‘(E) BAR ON ACKNOWLEDGMENT RATIFI-
CATION
PROCEEDINGS.—Procedures 
under
which no judicial or administrative proceedings
are required or permitted to ratify an unchal-
lenged acknowledgment of paternity.’’;
(6) in subparagraph (F), to read as follows:
‘‘(F) ADMISSIBILITY OF GENETIC TESTING
RESULTS.—Procedures—
‘‘(i) requiring that the State admit
into evidence, for purposes of establishing
paternity, results of any genetic test that
is—
‘‘(I) of a type generally acknowl-
edged, by accreditation bodies des-
ignated by the Secretary, as reliable
evidence of paternity; and
286
‘‘(II) performed by a laboratory
approved by such an accreditation
body;
‘‘(ii) that any objection to genetic
testing results must be made in writing not
later than a specified number of days be-
fore any hearing at which such results may
be introduced into evidence (or, at State
option, not later than a specified number
of days after receipt of such results); and
‘‘(iii) that, if no objection is made, the
test results are admissible as evidence of
paternity without the need for foundation
testimony or other proof of authenticity or
accuracy.’’; and
‘‘(7) by adding after subparagraph (H) the fol-
lowing new paragraphs:
‘‘(I) 
NO
RIGHT
TO
JURY
TRIAL.—Procedures 
providing 
that
the parties to an action to establish
paternity are not entitled to jury trial.
‘‘(J) TEMPORARY SUPPORT ORDER BASED
ON
PROBABLE
PATERNITY
IN
CONTESTED
CASES.—Procedures which require that a tem-
porary order be issued, upon motion by a party,
287
requiring the provision of child support pending
an administrative or judicial determination of
parentage, where there is clear and convincing
evidence of paternity (on the basis of genetic
tests or other evidence).
‘‘(K) PROOF OF CERTAIN SUPPORT AND
PATERNITY
ESTABLISHMENT
COSTS.—Proce-
dures under which bills for pregnancy, child-
birth, and genetic testing are admissible as evi-
dence without requiring third-party foundation
testimony, and shall constitute prima facie evi-
dence of amounts incurred for such services and
testing on behalf of the child.
‘‘(L) WAIVER OF STATE DEBTS FOR CO-
OPERATION.—Procedures under which the tri-
bunal establishing paternity and support has
discretion to waive rights to all or part of
amounts owed to the State (but not to the
mother) for costs related to pregnancy, child-
birth, and genetic testing and for public assist-
ance paid to the family where the father cooper-
ates or acknowledges paternity before or after
genetic testing.
‘‘(M) STANDING OF PUTATIVE FATHERS.—
Procedures ensuring that the putative father
288
has a reasonable opportunity to initiate a pater-
nity action.’’.
(b) TECHNICAL
AMENDMENT.—Section 468 is
amended by striking ‘‘a simple civil process for voluntarily
acknowledging paternity and’’.
SEC. 641. OUTREACH FOR VOLUNTARY PATERNITY ESTAB-
LISHMENT.
(a) STATE PLAN REQUIREMENT.—Section 454(23),
as amended by section 606, is further amended by adding
at the end the following new subparagraph:
‘‘(C) publicize the availability and encour-
age the use of procedures for voluntary estab-
lishment of paternity and child support through
a variety of means, which—
‘‘(i) include distribution of written
materials at health care facilities (includ-
ing hospitals and clinics), and other loca-
tions such as schools;
‘‘(ii) may include pre-natal programs
to educate expectant couples on individual
and joint rights and responsibilities with
respect to paternity (and may require all
expectant recipients of assistance under
part A to participate in such pre-natal pro-
grams, as an element of cooperation with
289
efforts to establish paternity and child sup-
port);
‘‘(iii) include, with respect to each
child discharged from a hospital after birth
for whom paternity or child support has
not been established, reasonable follow-up
efforts (including at least one contact of
each parent whose whereabouts are known,
except where there is reason to believe
such follow-up efforts would put mother or
child at risk), providing—
‘‘(I) in the case of a child for
whom paternity has not been estab-
lished, information on the benefits of
and procedures for establishing pater-
nity; and
‘‘(II) in the case of a child for
whom paternity has been established
but child support has not been estab-
lished, information on the benefits of
and procedures for establishing a
child support order, and an applica-
tion for child support services;’’.
(b) 
ENHANCED
FEDERAL
MATCHING.—Section
455(a)(1)(C) is amended—
290
(1) by inserting ‘‘(i)’’ before ‘‘laboratory costs’’,
and
(2) by inserting before the semicolon ‘‘, and (ii)
costs of outreach programs designed to encourage
voluntary acknowledgment of paternity’’.
(c) EFFECTIVE DATES.—(1) The amendments made
by subsection (a) shall become effective October 1, 1996.
(2) The amendments made by subsection (b) shall be
effective with respect to calendar quarters beginning on
and after October 1, 1995.
SEC. 642. PENALTY FOR FAILURE TO ESTABLISH PATER-
NITY PROMPTLY.
Section 403 is amended—
(1) in subsection (a), as amended by section
612(e), by striking ‘‘subsection (h)’’ and inserting
‘‘subsections (h) and (i)—’’; and
(2) by adding after subsection (h) the following
new subsection:
‘‘(i) PENALTY FOR FAILURE TO ESTABLISH PATER-
NITY PROMPTLY.—(1) IN GENERAL.—The amounts other-
wise payable to a State under subsection (a) for any cal-
endar quarter beginning 10 months or more after enact-
ment of this subsection shall be reduced by an amount,
determined pursuant to regulations in accordance with
291
paragraph (2), for certain children for whom paternity has
not been established.
‘‘(2) REDUCTION
FORMULA.—The Secretary shall
promulgate regulations specifying the formula for the re-
duction required under this subsection, which formula
shall provide for a reduction in Federal matching pay-
ments to a State under this section by an amount equal
to the product of—
‘‘(A) the number (after allowing for the toler-
ance level established under paragraph (3)) of chil-
dren born on or after the date 10 months after en-
actment of this provision who are receiving aid
under the State plan under part A, whose custodial
relatives have, throughout the preceding 12-month
period, complied with the cooperation requirements
specified in section 454(25)(D), but for whom pater-
nity has not been established;
‘‘(B) the average monthly assistance payment
under the State plan under this part; and
‘‘(C) the Federal matching rate applicable to
such assistance payment.
‘‘(3) TOLERANCE LEVEL.—(A) The tolerance level,
for purposes of paragraph (2)(A), shall not be higher than
the percentage specified in subparagraph (B) of children
in the State described in paragraph (1), and may decrease
292
over time to make allowance for a State’s inability to es-
tablish paternity in all cases.
‘‘(B) The percentage specified in this paragraph shall
be 25 percent for fiscal years 1997 and 1998, 20 percent
for fiscal years 1999 and 2000, 15 percent for fiscal years
2001 and 2002, and 10 percent for fiscal year 2003 and
each succeeding fiscal year.’’.
SEC. 643. INCENTIVES TO PARENTS TO ESTABLISH PATER-
NITY.
(a) OPTIONAL STATE ACTIVITIES.—Section 455 is
amended by adding at the end the following new sub-
section:
‘‘(f) PATERNITY ESTABLISHMENT INCENTIVES
TO
FAMILIES.—(1) The Secretary, in accordance with regula-
tions, may approve proposals by States to amend State
plans under this part to provide for incentive payments
to families to encourage paternity establishment.
‘‘(2) Federal financial participation shall be available
in accordance with subsection (a) for expenditures by a
State pursuant to a plan amendment approved under
paragraph (1).
(b) DEMONSTRATIONS.—(1) PROJECTS
AUTHOR-
IZED.—The Secretary shall authorize up to 3 States to
conduct demonstrations providing financial incentives to
families for establishment of paternity.
293
(2) FEDERAL FUNDING.—(A) Subject to subpara-
graph (B), a State participating in a demonstration under
this section shall be entitled to Federal payments pursuant
to section 455(f) of the Social Security Act for 90 percent
of the payments to families under such demonstration.
(B) FUNDING LIMITATION.—Total Federal expendi-
tures for demonstrations under this section shall not ex-
ceed $1,000,000.
PART F—ESTABLISHMENT AND
MODIFICATION OF SUPPORT ORDERS
SEC. 651. NATIONAL COMMISSION ON CHILD SUPPORT
GUIDELINES.
(a) ESTABLISHMENT.—The Secretary is authorized
to establish, in accordance with this section, a commission
to be known as the ‘‘National Commission on Child Sup-
port Guidelines’’ (in this section referred to as the ‘‘Com-
mission’’).
(b) GENERAL DUTIES.—The Commission shall con-
sider whether a national child support guideline is advis-
able and, if it so determines, shall develop and propose
for congressional consideration such a guideline (or pa-
rameters for State guidelines), reflecting the Commission’s
study of various guideline models and its conclusions con-
cerning their strengths and deficiencies, and specifically
reflecting consideration of the need for simplicity and ease
294
of application of guidelines, and of the matters enumer-
ated in subsection (c).
(c) MATTERS FOR CONSIDERATION BY THE COMMIS-
SION.—In making the recommendations concerning guide-
lines required pursuant to subsection (b), the Commission
shall consider—
(1) the adequacy of State child support guide-
lines established pursuant to section 467;
(2) matters generally applicable to all support
orders, including—
(A) the feasibility of adopting uniform
terms in all child support orders;
(B) how to define income and under what
circumstances income should be imputed; and
(C) tax treatment of child support pay-
ments;
(3) the appropriate treatment of cases in which
either or both parents have financial obligations to
more than one family, including the effect (if any)
to be given to—
(A) the income of either parent’s spouse;
and
(B) the financial responsibilities of either
parent for other children or stepchildren;
295
(4) the appropriate treatment of expenses for
child care (including care of the children of either
parent, and work-related or job-training-related child
care);
(5) the appropriate treatment of expenses for
health care (including uninsured health care) and
other extraordinary expenses for children with spe-
cial needs;
(6) the appropriate duration of support by one
or both parents, including—
(A) support (including shared support) for
post-secondary or vocational education; and
(B) support for disabled adult children;
and
(7) whether, or to what extent, support levels
should be adjusted in cases where custody is shared
or where the noncustodial parent has extended visi-
tation rights.
(d) MEMBERSHIP.—
(1) NUMBER; APPOINTMENT.—
(A) IN GENERAL.—The Commission shall
be composed of 12 individuals appointed not
later than March 1, 1995, of which—
(i) two shall be appointed by the
Chairman of the Senate Committee on Fi-
297
(e) COMMISSION POWERS, COMPENSATION, ACCESS
TO INFORMATION, AND SUPERVISION.—The first sentence
of subparagraph (C), the first and third sentences of sub-
paragraph (D), subparagraph (F) (except with respect to
the conduct of medical studies), clauses (ii) and (iii) of
subparagraph (G), and subparagraph (H) of section
1886(e)(6) of the Social Security Act shall apply to the
Commission in the same manner in which such provisions
apply to the Prospective Payment Assessment Commis-
sion, except that references in such section to the Office
of Technology Assessment shall be disregarded.
(f) REPORT.—Not later than July 1, 1997, the Com-
mission shall report to the President and the Congress on
the results of the studies required under this section.
(g) The Commission shall terminate 6 months after
submission of the report required under subsection (f).
(h) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated to carry out this section
$1,000,000 for each of fiscal years 1995 and 1996, to re-
main available until expended.
SEC. 652. STATE LAWS CONCERNING MODIFICATION OF
CHILD SUPPORT ORDERS.
(a) 
STATE
LAW
REQUIREMENTS.—Section
466(a)(10) is amended—
298
(1) by inserting ‘‘PROCEDURES FOR MODIFICA-
TION OF SUPPORT ORDERS.—’’ after ‘‘(10)’’;
(2) by redesignating subparagraph (C) as sub-
paragraph (E) and inserting after subparagraph (B)
the following new subparagraphs:
‘‘(C)(i) Procedures to ensure that, begin-
ning October 1, 1999 (or such earlier date as
the State may select), the State agency (or, at
the option of the State, the local agency) re-
views and adjusts, in accordance with guidelines
established pursuant to section 467(a), judicial
and administrative child support orders in-
cluded in the State registry established pursu-
ant to section 454A(d), under which (subject to
clauses (ii) and (iii) the order—
‘‘(I) is to be reviewed not later than
36 months after the establishment of the
order or the most recent adjustment of (or
determination not to adjust) such order;
and
‘‘(II) (at State option) may not be re-
viewed during a minimum period estab-
lished by the State following the establish-
ment or most recent review of the order.
299
‘‘(ii) The requirement of clause (i)(I) shall
not apply in any case where—
‘‘(I) the State has determined, in ac-
cordance with regulations of the Secretary,
that such a review would not be in the best
interests of the child; or
‘‘(II) both parents have been informed
of the modified support amount that would
be imposed under the guidelines and have
declined such modification in writing.
‘‘(iii) The State shall provide for review of
a child support order upon the request of either
parent, notwithstanding the requirement of
clause (i)(II), whenever, subsequent to the es-
tablishment or most recent review—
‘‘(I) 
either 
parent’s 
income 
has
changed by more than 20 percent, or
‘‘(II) other substantial changes have
occurred in either parent’s circumstances.
‘‘(D) AMOUNT
OF
MODIFICATION
BASED
ON GUIDELINES.—Procedures under which sup-
port orders reviewed in accordance with sub-
paragraph (C) must be adjusted in accordance
with the guidelines established pursuant to sec-
tion 467(a), without a requirement for any
300
other change in circumstances (except that the
State may refuse to modify an order in any
case where the change in the support amount,
if so modified, would not exceed a threshold
percentage (which may not be greater than 10
percent)).’’;
(3) in subparagraph (E), as redesignated—
(i) by striking ‘‘(E)’’ and inserting ‘‘(E)
DUE PROCESS SAFEGUARDS.—’’;
(ii) in the matter preceding clause (i), by
striking ‘‘this part—’’ and inserting ‘‘this part,
in accordance with State due process require-
ments—’’;
(iii) in clause (i), by striking ‘‘, at least 30
days before the commencement of such review’’;
and
(iv) in clause (iii), by striking ‘‘not less
than 30 days’’ and inserting ‘‘a reasonable
time’’.
(b) AUTOMATED PROCEDURES.—Section 454A, as
previously added and amended by this Act, is further
amended by adding at the end the following new sub-
section:
‘‘(i) MODIFICATION
OF SUPPORT ORDERS.—The
automated system required under this section shall be
301
used, to the maximum extent feasible, to assist in the re-
view and modification of support orders in accordance
with the timetable under section 466(a)(10) and the
guidelines under section 467.’’.
SEC. 653. STUDY ON USE OF TAX RETURN INFORMATION
FOR MODIFICATION OF CHILD SUPPORT OR-
DERS.
(a) REQUIREMENT FOR STUDY.—The Secretary of
Health and Human Services and the Secretary of the
Treasury shall conduct a study to determine how return
information (as defined in section 6103(b) of the Internal
Revenue Code of 1986) filed with the Secretary of the
Treasury might be used to facilitate the process of deter-
mining the amount (if any) by which child support award
amounts should be modified in accordance with guidelines
established under section 467.
(b) AMENDMENT TO INTERNAL REVENUE CODE.—
Section 6103(1)(6) of the Internal Revenue Code of 1986
is amended by adding at the end the following new sub-
paragraph:
‘‘(C) Upon written request by the Sec-
retary of Health and Human Services, the Sec-
retary may disclose return information to offi-
cers and employees of the Department of the
Treasury and the Department of Health and
302
Human Services, as may be specified in such
written request, to be used in conducting the
study required under section 653 of the Work
and Responsibility Act of 1994. Return infor-
mation disclosed pursuant to this subparagraph
shall be used only for purposes of conducting
such study.’’.
PART G—ENFORCEMENT OF SUPPORT ORDERS
SEC. 661. REVOLVING LOAN FUND FOR PROGRAM IM-
PROVEMENTS TO INCREASE COLLECTIONS.
Part D of title IV is amended by inserting after sec-
tion 455 the following new section:
‘‘REVOLVING FUND FOR PROGRAM IMPROVEMENTS TO
INCREASE COLLECTIONS
‘‘SEC. 455A. (a) PURPOSE; AUTHORIZATION OF AP-
PROPRIATIONS.—The Secretary is authorized to establish
a revolving fund for loans to States operating programs
under this part, for short-term projects by such States
(and political subdivisions of such States) for making
operational improvements in such programs with the po-
tential for achieving substantial increases in child support
collections. There are authorized to be appropriated for
payment to such fund $10,000,000 for each of fiscal years
1998 and 1999, and $20,000,000 for each of fiscal years
2000 through 2003: Provided, That payment may be made
303
to this fund only to the extent, and in such amounts, as
are provided for in advance in appropriations Acts.
‘‘(b) CRITERIA
FOR LOAN AWARDS.—Criteria for
evaluating applications for loans under this section must
include—
‘‘(1) the likelihood that the proposed project
will increase child support collections, and
‘‘(2) the availability to the State (or political
subdivision) of funding for the project from other
sources.
‘‘(c) AMOUNT AND DURATION OF LOANS.—
‘‘(1) AMOUNT.—Loans may be made to a State
under this section in amounts not to exceed
$5,000,000 per State or $1,000,000 per project (or
$5,000,000 for a single Statewide project in a large
State). States may supplement loan funds under this
section with funds from other sources, and may re-
quire contributions from local jurisdictions served by
the project.
‘‘(2) DURATION.—Loan payments to a State
for a project under this section may not be made for
a period longer than 3 years.
‘‘(d) RECOUPMENT.—A loan to a State under this
section shall be recovered from the State over 3 fiscal
years, beginning in the fourth calendar quarter beginning
304
after the project ends (or, if earlier, the sixteenth calendar
quarter beginning after loan payments for the project
began) through—
‘‘(1) an offset of one-half of the increase in in-
centive payments due to the State under section 458
for each calendar quarter until funds are fully re-
paid, plus
‘‘(2) an offset from payments due to the State
under section 455(a) for each calendar quarter equal
to the amount, if any, by which one-twelfth of the
total loan (plus interest) exceeds the amount de-
scribed under paragraph (1),
with such amounts recovered being credited to the revolv-
ing fund under this section.
‘‘(e) AVAILABILITY AS STATE SHARE.—Funds re-
ceived by a State under this section may be used by the
State as the non-Federal share of expenditures under the
State program under this part.’’.
SEC. 662. FEDERAL INCOME TAX REFUND OFFSET.
(a) CHANGED ORDER OF REFUND DISTRIBUTION
UNDER INTERNAL REVENUE CODE.—(1) Section 6402(c)
of the Internal Revenue Code of 1986 is amended—
(A) by striking ‘‘The amount’’ and inserting
‘‘(1) IN GENERAL.—The amount’’;