207
qualify for incentive adjustments under
this section; and
‘‘(ii) the amounts of incentive adjust-
ment that shall be awarded to States
achieving specified accomplishment or im-
provement levels, which amounts shall be
graduated, ranging up to—
‘‘(I) 5 percentage points, in con-
nection with Statewide paternity es-
tablishment; and
‘‘(II) 10 percentage points, in
connection with overall performance in
child support enforcement.
‘‘(B) LIMITATION.—In setting performance
standards pursuant to subparagraph (A)(i) and
adjustment amounts pursuant to subparagraph
(A)(ii), the Secretary shall ensure that the ag-
gregate number of percentage point increases as
incentive adjustments to all States do not ex-
ceed such aggregate increases as assumed by
the Secretary in estimates of the cost of this
section as of June 1994, unless the aggregate
performance of all States exceeds the projected
aggregate performance of all States in such cost
estimates.
208
‘‘(3) DETERMINATION OF INCENTIVE ADJUST-
MENT.—
‘‘(A) USE
OF
PERFORMANCE
INDICA-
TORS.—The Secretary shall, for fiscal year
1998 and each succeeding fiscal year, determine
the amount (if any) of incentive adjustment for
each State on the basis of the data submitted
by the State pursuant to section 454(15)(B)
with respect to performance indicators estab-
lished by the Secretary.
‘‘(B) 
MINIMUM
PERFORMANCE
RE-
QUIRED.—
‘‘(i) IN
GENERAL.—The Secretary
shall not determine an incentive adjust-
ment for a State for a fiscal year if the
level of performance of the State for the
fiscal year with respect to such perform-
ance indicators is below the performance
threshold established by the Secretary for
the State for the fiscal year.
‘‘(ii) ESTABLISHMENT OF STATE PER-
FORMANCE
THRESHOLD.—The perform-
ance threshold with respect to such per-
formance indicators for a State and a fis-
209
cal year shall be at or above the greater
of—
‘‘(I) the national average level of
performance with respect to such indi-
cators, as of the date of the enact-
ment of this section; or
‘‘(II) the level of performance of
the State with respect to such indica-
tors for the immediately preceding fis-
cal year.
‘‘(C) DEADLINE FOR ISSUANCE OF REGU-
LATIONS.—Within 90 days after the date of the
enactment of this section, the Secretary shall
issue regulations setting forth the criteria for
awarding incentive adjustments.
‘‘(4) FISCAL YEAR SUBJECT TO INCENTIVE AD-
JUSTMENT.—The total percentage point increase de-
termined pursuant to this section with respect to a
State program in a fiscal year shall apply as an ad-
justment to the percent applicable under section
455(a)(2) for payments to such State for the suc-
ceeding fiscal year.
‘‘(b) DEFINITIONS.—As used in subsection (a):
‘‘(1) STATEWIDE PATERNITY ESTABLISHMENT
PERCENTAGE.—The term ‘Statewide paternity estab-
210
lishment 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.
‘‘(2) OVERALL PERFORMANCE OF THE STATE
IN
CHILD
SUPPORT
ENFORCEMENT.—The term
‘overall performance of the State in child support
enforcement’ means a measure or measures of the
effectiveness of the State agency in a fiscal year
which takes into account factors including—
‘‘(A) the percentage of cases requiring a
child support order in which such an order was
established;
‘‘(B) the percentage of cases in which child
support is being paid;
‘‘(C) the ratio of child support collected to
child support due; and
‘‘(D) the cost-effectiveness of the State
program, as determined in accordance with
standards established by the Secretary in regu-
lations.’’.
211
(b) TITLE IV–D PAYMENT ADJUSTMENT.—Section
455(a)(2) (42 U.S.C. 655(a)(2)), as amended by section
415(a) of this Act, is amended—
(1) by striking the period at the end of sub-
paragraph (C) and inserting a semicolon; and
(2) by adding after and below subparagraph
(C), flush with the left margin of the subsection, the
following:
‘‘increased by the incentive adjustment factor (if any) de-
termined by the Secretary pursuant to section 458.’’.
(c) CONFORMING AMENDMENTS.—Section 454(22)
(42 U.S.C. 654(22)) is amended—
(1) by striking ‘‘incentive payments’’ the 1st
place such term appears and inserting ‘‘incentive ad-
justments’’; and
(2) by striking ‘‘any such incentive payments
made to the State for such period’’ and inserting
‘‘any increases in Federal payments to the State re-
sulting from such incentive adjustments’’.
(d) CALCULATION OF IV–D PATERNITY ESTABLISH-
MENT PERCENTAGE.—
(1) Section 452(g)(1) (42 U.S.C. 652(g)(1)) is
amended in the matter preceding subparagraph (A)
by inserting ‘‘its overall performance in child sup-
port enforcement is satisfactory (as defined in sec-
212
tion 458(b) and regulations of the Secretary), and’’
after ‘‘1994,’’.
(2) 
Section 
452(g)(2)(A) 
(42 
U.S.C.
652(g)(2)(A)) is amended in the matter preceding
clause (i)—
(A) by striking ‘‘paternity establishment
percentage’’ and inserting ‘‘IV–D paternity es-
tablishment percentage’’; and
(B) by striking ‘‘(or all States, as the case
may be)’’.
(3) Section 452(g)(3) (42 U.S.C. 652(g)(3)) is
amended—
(A) by striking subparagraph (A) and re-
designating subparagraphs (B) and (C) as sub-
paragraphs (A) and (B), respectively;
(B) in subparagraph (A) (as so redesig-
nated), by striking ‘‘the percentage of children
born out-of-wedlock in a State’’ and inserting
‘‘the percentage of children in a State who are
born out of wedlock or for whom support has
not been established’’; and
(C) in subparagraph (B) (as so redesig-
nated)—
213
(i) by inserting ‘‘and overall perform-
ance in child support enforcement’’ after
‘‘paternity establishment percentages’’; and
(ii) by inserting ‘‘and securing sup-
port’’ before the period.
(e) TITLE IV–A PAYMENT REDUCTION.—Section
403 (42 U.S.C. 603) 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
214
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 1 nor more than 2 percent,
or
‘‘(B) not less than 2 nor more than 3 percent,
if the finding is the 2nd consecutive finding made
pursuant to paragraph (1), or
215
‘‘(C) not less than 3 nor more than 5 percent,
if the finding is the 3rd or a subsequent consecutive
such finding.’’; and
(3) in subsection (h)(3), by striking ‘‘not in full
compliance’’ and all that follows and inserting ‘‘de-
termined 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 Secretary determines that the
extent of the incompleteness or unreliability of the
data is of a technical nature which does not ad-
versely 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) Section 458 of the Social Security Act, as
in effect immediately before the date of the enact-
ment of this section, shall be effective for purposes
of incentive payments to States for fiscal years be-
fore fiscal year 1998.
(2) PENALTY REDUCTIONS.—(A) The amend-
ments made by subsection (d) shall become effective
216
with respect to calendar quarters beginning on and
after the date of enactment of this Act.
(B) The amendments made by subsection (e)
shall become effective with respect to calendar quar-
ters beginning on and after the date that is 1 year
after the date of enactment of this Act.
SEC. 446. STATE LAWS CONCERNING PATERNITY ESTAB-
LISHMENT.
(a) STATE LAWS REQUIRED.—Section 466(a)(5) (42
U.S.C. 666(a)(5)) is amended—
(1) by striking ‘‘(5)’’ and inserting the follow-
ing:
‘‘(5) PROCEDURES CONCERNING PATERNITY ES-
TABLISHMENT.—’’;
(2) in subparagraph (A)—
(A) by striking ‘‘(A)(i)’’ and inserting the
following:
‘‘(A) ESTABLISHMENT
PROCESS
AVAIL-
ABLE
FROM
BIRTH
UNTIL
AGE
EIGHTEEN.—
(i)’’; and
(B) by indenting clauses (i) and (ii) so
that the left margin of such clauses is 2 ems to
the right of the left margin of paragraph (4);
(3) in subparagraph (B)—
217
(A) by striking ‘‘(B)’’ and inserting the
following:
‘‘(B) PROCEDURES CONCERNING GENETIC
TESTING.—(i)’’;
(B) in clause (i), as redesignated, by in-
serting before the period ‘‘, where such request
is supported by a sworn statement (I) by such
party alleging paternity setting forth facts es-
tablishing a reasonable possibility of the req-
uisite sexual contact of the parties, or (II) by
such party denying paternity setting forth facts
establishing a reasonable possibility of the
nonexistence of sexual contact of the parties;’’;
(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 father if paternity is es-
tablished; and
‘‘(II) to obtain additional testing in
any case where an original test result is
218
disputed, upon request and advance pay-
ment by the disputing party.’’;
(4) by striking subparagraphs (C) and (D) and
inserting the following:
‘‘(C) PATERNITY ACKNOWLEDGMENT.—(i)
Procedures for a simple civil process for volun-
tarily acknowledging paternity under which the
State must provide that, before a mother and a
putative father can sign an acknowledgment of
paternity, the putative father and the mother
must be given notice, orally, in writing, and in
a language that each can understand, of the al-
ternatives to, the legal consequences of, and the
rights (including, if 1 parent is a minor, any
rights afforded due to minority status) and re-
sponsibilities that arise from, signing the ac-
knowledgment.
‘‘(ii) Such procedures must include a hos-
pital-based program for the voluntary acknowl-
edgment of paternity focusing on the period im-
mediately before or after the birth of a child.
‘‘(iii) Such procedures must require the
State agency responsible for maintaining birth
records to offer voluntary paternity establish-
ment services.
219
‘‘(iv) The Secretary shall prescribe regula-
tions governing voluntary paternity establish-
ment services offered by hospitals and birth
record agencies. The Secretary shall prescribe
regulations specifying the types of other entities
that may offer voluntary paternity establish-
ment services, and governing the provision of
such services, which shall include a requirement
that such an entity must use the same notice
provisions used by, the same materials used by,
provide the personnel providing such services
with the same training provided by, and evalu-
ate the provision of such services in the same
manner as, voluntary paternity establishment
programs of hospitals and birth record agen-
cies.
‘‘(v) Such procedures must require the
State and those required to establish paternity
to use only the affidavit developed under section
452(a)(7) for the voluntary acknowledgment of
paternity, and to give full faith and credit to
such an affidavit signed in any other State.
‘‘(D) STATUS OF SIGNED PATERNITY AC-
KNOWLEDGMENT.—(i) Procedures under which
a signed acknowledgment of paternity is consid-
220
ered a legal finding of paternity, subject to the
right of any signatory to rescind the acknowl-
edgment within 60 days.
‘‘(ii)(I) Procedures under which, after the
60-day period referred to in clause (i), a signed
acknowledgment of paternity may be challenged
in court only on the basis of fraud, duress, or
material mistake of fact, with the burden of
proof upon the challenger, and under which the
legal responsibilities (including child support
obligations) of any signatory arising from the
acknowledgment may not be suspended during
the challenge, except for good cause shown.
‘‘(II) Procedures under which, after the
60-day period referred to in clause (i), a minor
who signs an acknowledgment of paternity
other than in the presence of a parent or court-
appointed guardian ad litem may rescind the
acknowledgment in a judicial or administrative
proceeding, until the earlier of—
‘‘(aa) attaining the age of majority; or
‘‘(bb) the date of the first judicial or
administrative proceeding brought (after
the signing) to establish a child support
obligation, visitation rights, or custody
221
rights with respect to the child whose pa-
ternity is the subject of the acknowledg-
ment, and at which the minor is rep-
resented by a parent, guardian ad litem, or
attorney.’’;
(5) by striking subparagraph (E) and inserting
the following:
‘‘(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) by striking subparagraph (F) and inserting
the following:
‘‘(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
222
‘‘(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
following new subparagraphs:
‘‘(I) NO RIGHT TO JURY TRIAL.—Proce-
dures 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,
requiring the provision of child support pending
223
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.—At the option of the State, proce-
dures under which the tribunal establishing pa-
ternity 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, childbirth, and genetic testing
and for public assistance paid to the family
where the father cooperates or acknowledges
paternity before or after genetic testing.
‘‘(M) STANDING OF PUTATIVE FATHERS.—
Procedures ensuring that the putative father
224
has a reasonable opportunity to initiate a pater-
nity action.’’.
(b) NATIONAL PATERNITY ACKNOWLEDGMENT AFFI-
DAVIT.—Section 452(a)(7) (42 U.S.C. 652(a)(7)) is
amended by inserting ‘‘, and develop an affidavit to be
used for the voluntary acknowledgment of paternity which
shall include the social security account number of each
parent’’ before the semicolon.
(c) TECHNICAL
AMENDMENT.—Section 468 (42
U.S.C. 668) is amended by striking ‘‘a simple civil process
for voluntarily acknowledging paternity and’’.
SEC. 447. OUTREACH FOR VOLUNTARY PATERNITY ESTAB-
LISHMENT.
(a) STATE PLAN REQUIREMENT.—Section 454(23)
(42 U.S.C. 654(23)) is 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;
225
‘‘(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
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
226
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) (42 U.S.C. 655(a)(1)(C)) is amended—
(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, 1997.
(2) The amendments made by subsection (b) shall be
effective with respect to calendar quarters beginning on
and after October 1, 1996.
Subtitle F—Establishment and
Modification of Support Orders
SEC. 451. NATIONAL CHILD SUPPORT GUIDELINES COMMIS-
SION.
(a) ESTABLISHMENT.—There is hereby established a
commission to be known as the ‘‘National Child Support
Guidelines Commission’’ (in this section referred to as the
‘‘Commission’’).
227
(b) GENERAL DUTIES.—The Commission shall de-
velop a national child support guideline for consideration
by the Congress that is based on a study of various guide-
line models, the benefits and deficiencies of such models,
and any needed improvements.
(c) MEMBERSHIP.—
(1) NUMBER; APPOINTMENT.—
(A) IN GENERAL.—The Commission shall
be composed of 12 individuals appointed jointly
by the Secretary of Health and Human Services
and the Congress, not later than January 15,
1997, of which—
(i) 2 shall be appointed by the Chair-
man of the Committee on Finance of the
Senate, and 1 shall be appointed by the
ranking minority member of the Commit-
tee;
(ii) 2 shall be appointed by the Chair-
man of the Committee on Ways and Means
of the House of Representatives, and 1
shall be appointed by the ranking minority
member of the Committee; and
(iii) 6 shall be appointed by the Sec-
retary of Health and Human Services.
228
(B) 
QUALIFICATIONS
OF
MEMBERS.—
Members of the Commission shall have exper-
tise and experience in the evaluation and devel-
opment of child support guidelines. At least 1
member shall represent advocacy groups for
custodial parents, at least 1 member shall rep-
resent advocacy groups for noncustodial par-
ents, and at least 1 member shall be the direc-
tor of a State program under part D of title IV
of the Social Security Act.
(2) TERMS OF OFFICE.—Each member shall be
appointed for a term of 2 years. A vacancy in the
Commission shall be filled in the manner in which
the original appointment was made.
(d) 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.
229
(e) REPORT.—Not later than 2 years after the ap-
pointment of members, the Commission shall submit to
the President, the Committee on Ways and Means of the
House of Representatives, and the Committee on Finance
of the Senate, a recommended national child support
guideline and a final assessment of issues relating to such
a proposed national child support guideline.
(f) TERMINATION.—The Commission shall terminate
6 months after the submission of the report described in
subsection (e).
SEC. 452. SIMPLIFIED PROCESS FOR REVIEW AND ADJUST-
MENT OF CHILD SUPPORT ORDERS.
(a) IN GENERAL.—Section 466(a)(10) (42 U.S.C.
666(a)(10)) is amended to read as follows:
‘‘(10) PROCEDURES
FOR
MODIFICATION
OF
SUPPORT ORDERS.—
‘‘(A)(i) Procedures under which—
‘‘(I) every 3 years, at the request of
either parent subject to a child support
order, the State shall review and, as appro-
priate, adjust the order in accordance with
the guidelines established under section
467(a) if the amount of the child support
award under the order differs from the
amount that would be awarded in accord-
230
ance with such guidelines, without a re-
quirement for any other change in cir-
cumstances; and
‘‘(II) upon request at any time of ei-
ther parent subject to a child support
order, the State shall review and, as appro-
priate, adjust the order in accordance with
the guidelines established under section
467(a) based on a substantial change in
the circumstances of either such parent.
‘‘(ii) Such procedures shall require both
parents subject to a child support order to be
notified of their rights and responsibilities pro-
vided for under clause (i) at the time the order
is issued and in the annual information ex-
change form provided under subparagraph (B).
‘‘(B) Procedures under which each child
support order issued or modified in the State
after the effective date of this subparagraph
shall require the parents subject to the order to
provide each other with a complete statement of
their respective financial condition annually on
a form which shall be established by the Sec-
retary and provided by the State. The Secretary
231
shall establish regulations for the enforcement
of such exchange of information.’’.
Subtitle G—Enforcement of
Support Orders
SEC. 461. FEDERAL INCOME TAX REFUND OFFSET.
(a) CHANGED ORDER OF REFUND DISTRIBUTION
UNDER INTERNAL REVENUE CODE.—Section 6402(c) of
the Internal Revenue Code of 1986 is amended by striking
the 3rd sentence.
(b) ELIMINATION OF DISPARITIES IN TREATMENT
OF ASSIGNED
AND NON-ASSIGNED ARREARAGES.—(1)
Section 464(a) (42 U.S.C. 664(a)) is amended—
(A) by striking ‘‘(a)’’ and inserting ‘‘(a) OFF-
SET AUTHORIZED.—’’;
(B) in paragraph (1)—
(i) in the first sentence, by striking ‘‘which
has been assigned to such State pursuant to
section 402(a)(26) or section 471(a)(17)’’; and
(ii) in the second sentence, by striking ‘‘in
accordance with section 457 (b)(4) or (d)(3)’’
and inserting ‘‘as provided in paragraph (2)’’;
(C) in paragraph (2), to read as follows:
‘‘(2) The State agency shall distribute amounts
paid by the Secretary of the Treasury pursuant to
paragraph (1)—
232
‘‘(A) in accordance with section 457 (a)(4)
or (d)(3), in the case of past-due support as-
signed 
to 
a 
State 
pursuant 
to 
section
402(a)(26) or section 471(a)(17); and
‘‘(B) to or on behalf of the child to whom
the support was owed, in the case of past-due
support not so assigned.’’;
(D) in paragraph (3)—
(i) by striking ‘‘or (2)’’ each place it ap-
pears; and
(ii) in subparagraph (B), by striking
‘‘under paragraph (2)’’ and inserting ‘‘on ac-
count of past-due support described in para-
graph (2)(B)’’.
(2) Section 464(b) (42 U.S.C. 664(b)) is
amended—
(A) by striking ‘‘(b)(1)’’ and inserting ‘‘(b)
REGULATIONS.—’’; and
(B) by striking paragraph (2).
(3) Section 464(c) (42 U.S.C. 664(c)) is
amended—
(A) by striking ‘‘(c)(1) Except as provided
in paragraph (2), as’’ and inserting ‘‘(c) DEFI-
NITION.—As’’; and
(B) by striking paragraphs (2) and (3).
233
(c) TREATMENT
OF
LUMP-SUM
TAX
REFUND
UNDER AFDC.—
(1) EXEMPTION FROM LUMP-SUM RULE.—Sec-
tion 402(a)(17) (42 U.S.C. 602(a)(17)) is amended
by adding at the end the following: ‘‘but this para-
graph shall not apply to income received by a family
that is attributable to a child support obligation
owed with respect to a member of the family and
that is paid to the family from amounts withheld
from a Federal income tax refund otherwise payable
to the person owing such obligation, to the extent
that such income is placed in a qualified asset ac-
count (as defined in section 406(j)) the total
amounts in which, after such placement, does not
exceed $10,000;’’.
(2) QUALIFIED
ASSET
ACCOUNT
DEFINED.—
Section 406 (42 U.S.C. 606), as amended by section
402(g)(2) of this Act, is amended by adding at the
end the following:
‘‘(j)(1) The term ‘qualified asset account’ means a
mechanism approved by the State (such as individual re-
tirement accounts, escrow accounts, or savings bonds) that
allows savings of a family receiving aid to families with
dependent children to be used for qualified distributions.
234
‘‘(2) The term ‘qualified distribution’ means a dis-
tribution from a qualified asset account for expenses di-
rectly related to 1 or more of the following purposes:
‘‘(A) The attendance of a member of the family
at any education or training program.
‘‘(B) The improvement of the employability (in-
cluding self-employment) of a member of the family
(such as through the purchase of an automobile).
‘‘(C) The purchase of a home for the family.
‘‘(D) A change of the family residence.’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall become effective October 1, 1999.
SEC. 462. INTERNAL REVENUE SERVICE COLLECTION OF
ARREARS.
(a) AMENDMENT TO INTERNAL REVENUE CODE.—
Section 6305(a) of the Internal Revenue Code of 1986 is
amended—
(1) in paragraph (1), by inserting ‘‘except as
provided in paragraph (5)’’ after ‘‘collected’’;
(2) by striking ‘‘and’’ at the end of paragraph
(3);
(3) by striking the period at the end of para-
graph (4) and inserting a comma;
(4) by adding after paragraph (4) the following
new paragraph:
235
‘‘(5) no additional fee may be assessed for ad-
justments to an amount previously certified pursu-
ant to such section 452(b) with respect to the same
obligor.’’; and
(5) by striking ‘‘Secretary of Health, Edu-
cation, and Welfare’’ each place it appears and in-
serting ‘‘Secretary of Health and Human Services’’.
(b) EFFECTIVE DATE.—The amendments made by
this section shall become effective October 1, 1997.
SEC. 463. AUTHORITY TO COLLECT SUPPORT FROM FED-
ERAL EMPLOYEES.
(a) CONSOLIDATION
AND STREAMLINING
OF AU-
THORITIES.—
(1) Section 459 (42 U.S.C. 659) is amended in
the caption by inserting ‘‘INCOME WITHHOLDING,’’
before ‘‘GARNISHMENT’’.
(2) Section 459(a) (42 U.S.C. 659(a)) is
amended—
(A) by striking ‘‘(a)’’ and inserting ‘‘(a)
CONSENT TO SUPPORT ENFORCEMENT.—
(B) by striking ‘‘section 207’’ and insert-
ing ‘‘section 207 of this Act and 38 U.S.C.
5301’’; and
(C) by striking all that follows ‘‘a private
person,’’ and inserting ‘‘to withholding in ac-
236
cordance with State law pursuant to subsections
(a)(1) and (b) of section 466 and regulations of
the Secretary thereunder, and to any other legal
process brought, by a State agency administer-
ing a program under this part or by an individ-
ual obligee, to enforce the legal obligation of
such individual to provide child support or ali-
mony.’’.
(3) Section 459(b) (42 U.S.C. 659(b)) is
amended to read as follows:
‘‘(b) CONSENT TO REQUIREMENTS APPLICABLE TO
PRIVATE PERSON.— Except as otherwise provided herein,
each entity specified in subsection (a) shall be subject,
with respect to notice to withhold income pursuant to sub-
section (a)(1) or (b) of section 466, or to any other order
or process to enforce support obligations against an indi-
vidual (if such order or process contains or is accompanied
by sufficient data to permit prompt identification of the
individual and the moneys involved), to the same require-
ments as would apply if such entity were a private per-
son.’’.
(4) Section 459(c) (42 U.S.C. 659(c)) is redes-
ignated and relocated as paragraph (2) of subsection
(f), and is amended—
239
(7) Section 461 (42 U.S.C. 661) is amended by
striking subsection (c), and section 459 (42 U.S.C.
659) is amended by inserting after subsection (c) (as
added by paragraph (5) and amended by paragraph
(6) of this subsection) the following:
‘‘(d) PRIORITY OF CLAIMS.—In the event that a gov-
ernmental entity receives notice or is served with process,
as provided in this section, concerning amounts owed by
an individual to more than one person—
‘‘(1) support collection under section 466(b)
must be given priority over any other process, as
provided in section 466(b)(7);
‘‘(2) allocation of moneys due or payable to an
individual among claimants under section 466(b)
shall be governed by the provisions of such section
466(b) and regulations thereunder; and
‘‘(3) such moneys as remain after compliance
with subparagraphs (A) and (B) shall be available to
satisfy any other such processes on a first-come,
first-served basis, with any such process being satis-
fied out of such moneys as remain after the satisfac-
tion of all such processes which have been previously
served.’’.
240
(8) Section 459(e) (42 U.S.C. 659(e)) is
amended by striking ‘‘(e)’’ and inserting the follow-
ing:
‘‘(e) NO REQUIREMENT TO VARY PAY CYCLES.—’’.
(9) Section 459(f) (42 U.S.C. 659(f)) is amend-
ed by striking ‘‘(f)’’ and inserting the following:
‘‘(f) RELIEF FROM LIABILITY.—(1)’’.
(10) Section 461(a) (42 U.S.C. 661(a)) is re-
designated and relocated as section 459(g), and is
amended—
(A) by striking ‘‘(g)’’ and inserting the fol-
lowing:
‘‘(g) REGULATIONS.—’’; and
(B) by striking ‘‘section 459’’ and insert-
ing ‘‘this section’’.
(11) Section 462 (42 U.S.C. 662) is amended
by striking subsection (f), and section 459 (42
U.S.C. 659) is amended by inserting the following
after subsection (g) (as added by paragraph (10) of
this subsection):
‘‘(h) MONEYS SUBJECT TO PROCESS.—(1) Subject to
subsection (i), moneys paid or payable to an individual
which are considered to be based upon remuneration for
employment, for purposes of this section—
‘‘(A) consist of—
241
‘‘(i) compensation paid or payable for per-
sonal services of such individual, whether such
compensation is denominated as wages, salary,
commission, bonus, pay, allowances, or other-
wise (including severance pay, sick pay, and in-
centive pay);
‘‘(ii) periodic benefits (including a periodic
benefit as defined in section 228(h)(3)) or other
payments—
‘‘(I) under the insurance system es-
tablished by title II;
‘‘(II) under any other system or fund
established by the United States which
provides for the payment of pensions, re-
tirement or retired pay, annuities, depend-
ents’ or survivors’ benefits, or similar
amounts payable on account of personal
services performed by the individual or any
other individual;
‘‘(III) as compensation for death
under any Federal program;
‘‘(IV) under any Federal program es-
tablished to provide ‘black lung’ benefits;
or
242
‘‘(V) by the Secretary of Veterans Af-
fairs as pension, or as compensation for a
service-connected disability or death (ex-
cept any compensation paid by such Sec-
retary to a former member of the Armed
Forces who is in receipt of retired or re-
tainer pay if such former member has
waived a portion of his retired pay in order
to receive such compensation); and
‘‘(iii) worker’s compensation benefits paid
under Federal or State law; but
‘‘(B) do not include any payment—
‘‘(i) by way of reimbursement or otherwise,
to defray expenses incurred by such individual
in carrying out duties associated with his em-
ployment; or
‘‘(ii) as allowances for members of the uni-
formed services payable pursuant to chapter 7
of title 37, United States Code, as prescribed
by the Secretaries concerned (defined by section
101(5) of such title) as necessary for the effi-
cient performance of duty.’’.
(12) Section 462(g) (42 U.S.C. 662(g)) is re-
designated and relocated as section 459(i) (42
U.S.C. 659(i)).
243
(13)(A) Section 462 (42 U.S.C. 662) is amend-
ed—
(i) in subsection (e)(1), by redesignating
subparagraphs (A), (B), and (C) as clauses (i),
(ii), and (iii); and
(ii) in subsection (e), by redesignating
paragraphs (1) and (2) as subparagraphs (A)
and (B).
(B) Section 459 (42 U.S.C. 659) is amended by
adding at the end the following:
‘‘(j) DEFINITIONS.—For purposes of this sec-
tion—’’.
(C) Subsections (a) through (e) of section 462
(42 U.S.C. 662), as amended by subparagraph (A)
of this paragraph, are relocated and redesignated as
paragraphs (1) through (4), respectively of section
459(j) (as added by subparagraph (B) of this para-
graph, (42 U.S.C. 659(j)), and the left margin of
each of such paragraphs (1) through (4) is indented
2 ems to the right of the left margin of subsection
(i) (as added by paragraph (12) of this subsection).
(b) CONFORMING AMENDMENTS.—
(1) TO PART D OF TITLE IV.—Sections 461 and
462 (42 U.S.C. 661), as amended by subsection (a)
of this section, are repealed.
244
(2) TO TITLE 5, UNITED STATES CODE.—Sec-
tion 5520a of title 5, United States Code, is amend-
ed, in subsections (h)(2) and (i), by striking ‘‘sec-
tions 459, 461, and 462 of the Social Security Act
(42 U.S.C. 659, 661, and 662)’’ and inserting ‘‘sec-
tion 459 of the Social Security Act (42 U.S.C.
659)’’.
(c) MILITARY RETIRED AND RETAINER PAY.—(1)
DEFINITION OF COURT.—Section 1408(a)(1) of title 10,
United States Code, is amended—
(A) by striking ‘‘and’’ at the end of subpara-
graph (B);
(B) by striking the period at the end of sub-
paragraph (C) and inserting ‘‘; and’’; and
(C) by adding after subparagraph (C) the fol-
lowing new paragraph:
‘‘(D) any administrative or judicial tribu-
nal of a State competent to enter orders for
support or maintenance (including a State
agency administering a State program under
part D of title IV of the Social Security Act).’’;
(2) 
DEFINITION
OF
COURT
ORDER.—Section
1408(a)(2) of such title is amended by inserting ‘‘or a
court order for the payment of child support not included
245
in or accompanied by such a decree or settlement,’’ before
‘‘which—’’.
(3) PUBLIC PAYEE.—Section 1408(d) of such title is
amended—
(A) in the heading, by striking ‘‘to spouse’’ and
inserting ‘‘to (or for benefit of)’’; and
(B) in paragraph (1), in the first sentence, by
inserting ‘‘(or for the benefit of such spouse or
former spouse to a State central collections unit or
other public payee designated by a State, in accord-
ance with part D of title IV of the Social Security
Act, as directed by court order, or as otherwise di-
rected in accordance with such part D)’’ before ‘‘in
an amount sufficient’’.
(4) RELATIONSHIP TO PART D OF TITLE IV.—Sec-
tion 1408 of such title is amended by adding at the end
the following new subsection:
‘‘(j) RELATIONSHIP TO OTHER LAWS.—In any case
involving a child support order against a member who has
never been married to the other parent of the child, the
provisions of this section shall not apply, and the case
shall be subject to the provisions of section 459 of the
Social Security Act.’’.
246
(d) EFFECTIVE DATE.—The amendments made by
this section shall become effective 6 months after the date
of the enactment of this Act.
SEC. 464. ENFORCEMENT OF CHILD SUPPORT OBLIGA-
TIONS OF MEMBERS OF THE ARMED FORCES.
(a) AVAILABILITY OF LOCATOR INFORMATION.—
(1) MAINTENANCE
OF
ADDRESS
INFORMA-
TION.—The Secretary of Defense shall establish a
centralized personnel locator service that includes
the address of each member of the Armed Forces
under the jurisdiction of the Secretary. Upon re-
quest of the Secretary of Transportation, addresses
for members of the Coast Guard shall be included in
the centralized personnel locator service.
(2) TYPE OF ADDRESS.—
(A) RESIDENTIAL
ADDRESS.—Except as
provided in subparagraph (B), the address for
a member of the Armed Forces shown in the lo-
cator service shall be the residential address of
that member.
(B) DUTY ADDRESS.—The address for a
member of the Armed Forces shown in the loca-
tor service shall be the duty address of that
member in the case of a member—
247
(i) who is permanently assigned over-
seas, to a vessel, or to a routinely
deployable unit; or
(ii) with respect to whom the Sec-
retary concerned makes a determination
that the member’s residential address
should not be disclosed due to national se-
curity or safety concerns.
(3) UPDATING
OF
LOCATOR
INFORMATION.—
Within 30 days after a member listed in the locator
service establishes a new residential address (or a
new duty address, in the case of a member covered
by paragraph (2)(B)), the Secretary concerned shall
update the locator service to indicate the new ad-
dress of the member.
(4) AVAILABILITY OF INFORMATION.—The Sec-
retary of Defense shall make information regarding
the address of a member of the Armed Forces listed
in the locator service available, on request, to the
Federal Parent Locator Service.
(b) FACILITATING GRANTING OF LEAVE FOR AT-
TENDANCE AT HEARINGS.—
(1) REGULATIONS.—The Secretary of each
military department, and the Secretary of Transpor-
tation with respect to the Coast Guard when it is
248
not operating as a service in the Navy, shall pre-
scribe regulations to facilitate the granting of leave
to a member of the Armed Forces under the juris-
diction of that Secretary in a case in which—
(A) the leave is needed for the member to
attend a hearing described in paragraph (2);
(B) the member is not serving in or with
a unit deployed in a contingency operation (as
defined in section 101 of title 10, United States
Code); and
(C) the exigencies of military service (as
determined by the Secretary concerned) do not
otherwise require that such leave not be
granted.
(2) COVERED HEARINGS.—Paragraph (1) ap-
plies to a hearing that is conducted by a court or
pursuant to an administrative process established
under State law, in connection with a civil action—
(A) to determine whether a member of the
Armed Forces is a natural parent of a child; or
(B) to determine an obligation of a mem-
ber of the Armed Forces to provide child sup-
port.
(3) DEFINITIONS.—For purposes of this sub-
section:
249
(A) The term ‘‘court’’ has the meaning
given that term in section 1408(a) of title 10,
United States Code.
(B) The term ‘‘child support’’ has the
meaning given such term in section 462 of the
Social Security Act (42 U.S.C. 662).
(c) PAYMENT OF MILITARY RETIRED PAY IN COM-
PLIANCE WITH CHILD SUPPORT ORDERS.—
(1) DATE
OF
CERTIFICATION
OF
COURT
ORDER.—Section 1408 of title 10, United States
Code, is amended—
(A) by redesignating subsection (i) as sub-
section (j); and
(B) by inserting after subsection (h) the
following new subsection (i):
‘‘(i) CERTIFICATION DATE.—It is not necessary that
the date of a certification of the authenticity or complete-
ness of a copy of a court order or an order of an adminis-
trative process established under State law for child sup-
port received by the Secretary concerned for the purposes
of this section be recent in relation to the date of receipt
by the Secretary.’’.
(2) PAYMENTS
CONSISTENT
WITH
ASSIGN-
MENTS OF RIGHTS TO STATES.—Section 1408(d)(1)
of such title is amended by inserting after the first
250
sentence the following: ‘‘In the case of a spouse or
former spouse who, pursuant to section 402(a)(26)
of the Social Security Act (42 U.S.C. 602(26)), as-
signs to a State the rights of the spouse or former
spouse to receive support, the Secretary concerned
may make the child support payments referred to
in the preceding sentence to that State in amounts
consistent with that assignment of rights.’’.
(3) ARREARAGES OWED BY MEMBERS OF THE
UNIFORMED
SERVICES.—Section 1408(d) of such
title is amended by adding at the end the following
new paragraph:
‘‘(6) In the case of a court order or an order of an
administrative process established under State law for
which effective service is made on the Secretary concerned
on or after the date of the enactment of this paragraph
and which provides for payments from the disposable re-
tired pay of a member to satisfy the amount of child sup-
port set forth in the order, the authority provided in para-
graph (1) to make payments from the disposable retired
pay of a member to satisfy the amount of child support
set forth in a court order or an order of an administrative
process established under State law shall apply to payment
of any amount of child support arrearages set forth in that
251
order as well as to amounts of child support that currently
become due.’’.
SEC. 465. MOTOR VEHICLE LIENS.
Section 466(a)(4) (42 U.S.C. 666(a)(4)) is amend-
ed—
(1) by striking ‘‘(4) Procedures’’ and inserting
the following:
‘‘(4) LIENS.—
‘‘(A) IN GENERAL.—Procedures’’; and
(2) by adding at the end the following new sub-
paragraph:
‘‘(B) MOTOR VEHICLE LIENS.—Procedures
for placing liens for arrears of child support on
motor vehicle titles of individuals owing such
arrears equal to or exceeding two months of
support, under which—
‘‘(i) any person owed such arrears
may place such a lien;
‘‘(ii) the State agency administering
the program under this part shall system-
atically place such liens;
‘‘(iii) expedited methods are provided
for—
‘‘(I) ascertaining the amount of
arrears;
252
‘‘(II) affording the person owing
the arrears or other titleholder to con-
test the amount of arrears or to ob-
tain a release upon fulfilling the sup-
port obligation;
‘‘(iv) such a lien has precedence over
all other encumbrances on a vehicle title
other than a purchase money security in-
terest; and
‘‘(v) the individual or State agency
owed the arrears may execute on, seize,
and sell the property in accordance with
State law.’’.
SEC. 466. VOIDING OF FRAUDULENT TRANSFERS.
Section 466(a) (42 U.S.C. 666(a)), as amended by
sections 401(a), 426(a), 431, and 442 of this Act, is
amended by inserting after paragraph (15) the following:
‘‘(16) FRAUDULENT
TRANSFERS.—Procedures
under which—
‘‘(A) the State has in effect—
‘‘(i) the Uniform Fraudulent Convey-
ance Act of 1981,
‘‘(ii) the Uniform Fraudulent Trans-
fer Act of 1984, or
253
‘‘(iii) another law, specifying indicia of
fraud which create a prima facie case that
a debtor transferred income or property to
avoid payment to a child support creditor,
which the Secretary finds affords com-
parable rights to child support creditors;
and
‘‘(B) in any case in which the State knows
of a transfer by a child support debtor with re-
spect to which such a prima facie case is estab-
lished, the State must—
‘‘(i) seek to void such transfer; or
‘‘(ii) obtain a settlement in the best
interests of the child support creditor.’’.
SEC. 467. STATE LAW AUTHORIZING SUSPENSION OF LI-
CENSES.
Section 466(a) (42 U.S.C. 666(a)), as amended by
sections 401(a), 426(a), 431, 442, and 466 of this Act,
is amended by inserting after paragraph (16) the follow-
ing:
‘‘(17) AUTHORITY TO WITHHOLD OR SUSPEND
LICENSES.—Procedures under which the State has
(and uses in appropriate cases) authority (subject to
appropriate due process safeguards) to withhold or
suspend, or to restrict the use of driver’s licenses,
254
and professional and occupational licenses of individ-
uals owing overdue child support or failing, after re-
ceiving appropriate notice, to comply with subpoenas
or warrants relating to paternity or child support
proceedings.’’.
SEC. 468. REPORTING ARREARAGES TO CREDIT BUREAUS.
Section 466(a)(7) (42 U.S.C. 666(a)(7)) is amended
to read as follows:
‘‘(7) REPORTING ARREARAGES TO CREDIT BU-
REAUS.—(A) Procedures (subject to safeguards pur-
suant to subparagraph (B)) requiring the State to
report periodically to consumer reporting agencies
(as defined in section 603(f) of the Fair Credit Re-
porting Act (15 U.S.C. 1681a(f)) the name of any
absent parent who is delinquent by 90 days or more
in the payment of support, and the amount of over-
due support owed by such parent.
‘‘(B) Procedures ensuring that, in carrying out
subparagraph (A), information with respect to an
absent parent is reported—
‘‘(i) only after such parent has been af-
forded all due process required under State law,
including notice and a reasonable opportunity
to contest the accuracy of such information;
and
255
‘‘(ii) only to an entity that has furnished
evidence satisfactory to the State that the en-
tity is a consumer reporting agency.’’.
SEC. 469. EXTENDED STATUTE OF LIMITATION FOR COL-
LECTION OF ARREARAGES.
(a) AMENDMENTS.—Section 466(a)(9) (42 U.S.C.
666(a)(9)) is amended—
(1) by striking ‘‘(9) Procedures’’ and inserting
the following:
‘‘(9) LEGAL TREATMENT OF ARREARS.—
‘‘(A) FINALITY.—Procedures’’;
(2) by redesignating subparagraphs (A), (B),
and (C) as clauses (i), (ii), and (iii), respectively,
and by indenting each of such clauses 2 additional
ems to the right; and
(3) by adding after and below subparagraph
(A), as redesignated, the following new subpara-
graph:
‘‘(B) STATUTE
OF
LIMITATIONS.—Proce-
dures under which the statute of limitations on
any arrearages of child support extends at least
until the child owed such support is 30 years of
age.’’.
(b) APPLICATION OF REQUIREMENT.—The amend-
ment made by this section shall not be read to require
256
any State law to revive any payment obligation which had
lapsed prior to the effective date of such State law.
SEC. 470. CHARGES FOR ARREARAGES.
(a) STATE LAW REQUIREMENT.—Section 466(a) (42
U.S.C. 666(a)), as amended by sections 401(a), 426(a),
431, 442, 466, and 467 of this Act, is amended by insert-
ing after paragraph (17) the following:
‘‘(18) CHARGES
FOR
ARREARAGES.—Proce-
dures providing for the calculation and collection of
interest or penalties for arrearages of child support,
and for distribution of such interest or penalties col-
lected for the benefit of the child (except where the
right to support has been assigned to the State).’’.
(b) REGULATIONS.—The Secretary of Health and
Human Services shall establish by regulation a rule to re-
solve choice of law conflicts arising in the implementation
of the amendment made by subsection (a).
(c) CONFORMING AMENDMENT.—Section 454(21)
(42 U.S.C. 654(21)) is repealed.
(d) EFFECTIVE DATE.—The amendments made by
this section shall be effective with respect to arrearages
accruing on or after October 1, 1998.
SEC. 471. DENIAL OF PASSPORTS FOR NONPAYMENT OF
CHILD SUPPORT.
(a) HHS CERTIFICATION PROCEDURE.—
257
(1) SECRETARIAL
RESPONSIBILITY.—Section
452 (42 U.S.C. 652), as amended by sections
415(a)(3) and 417 of this Act, is amended by adding
at the end the following new subsection:
‘‘(l) CERTIFICATIONS FOR PURPOSES OF PASSPORT
RESTRICTIONS.—
‘‘(1) IN
GENERAL.—Where the Secretary re-
ceives a certification by a State agency in accord-
ance with the requirements of section 454(28) that
an individual owes arrearages of child support in an
amount exceeding $5,000 or in an amount exceeding
24 months’ worth of child support, the Secretary
shall transmit such certification to the Secretary of
State for action (with respect to denial, revocation,
or limitation of passports) pursuant to section
471(b) of the Individual Responsibility Act of 1995.
‘‘(2) LIMIT ON LIABILITY.—The Secretary shall
not be liable to an individual for any action with re-
spect to a certification by a State agency under this
section.’’.
(2) STATE CSE AGENCY RESPONSIBILITY.—Sec-
tion 454 (42 U.S.C. 654), as amended by sections
404(a), 414(b), and 422(a) of this Act, is amend-
ed—
258
(A) by striking ‘‘and’’ at the end of para-
graph (26);
(B) by striking the period at the end of
paragraph (27) and inserting ‘‘; and’’; and
(C) by adding after paragraph (27) the fol-
lowing new paragraph:
‘‘(28) provide that the State agency will have in
effect a procedure (which may be combined with the
procedure for tax refund offset under section 464)
for certifying to the Secretary, for purposes of the
procedure under section 452(l) (concerning denial of
passports) determinations that individuals owe ar-
rearages of child support in an amount exceeding
$5,000 or in an amount exceeding 24 months’ worth
of child support, under which procedure—
‘‘(A) each individual concerned is afforded
notice of such determination and the con-
sequences thereof, and an opportunity to con-
test the determination; and
‘‘(B) the certification by the State agency
is furnished to the Secretary in such format,
and accompanied by such supporting docu-
mentation, as the Secretary may require.’’.
(b) STATE DEPARTMENT PROCEDURE FOR DENIAL
OF PASSPORTS.—
259
(1) IN
GENERAL.—The Secretary of State,
upon certification by the Secretary of Health and
Human Services, in accordance with section 452(l)
of the Social Security Act, that an individual owes
arrearages of child support in excess of $5,000, shall
refuse to issue a passport to such individual, and
may revoke, restrict, or limit a passport issued pre-
viously to such individual.
(2) LIMIT
ON
LIABILITY.—The Secretary of
State shall not be liable to an individual for any ac-
tion with respect to a certification by a State agency
under this section.
(c) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall become effective October
1, 1996.
SEC. 472. INTERNATIONAL CHILD SUPPORT ENFORCE-
MENT.
(a) SENSE OF THE CONGRESS THAT THE UNITED
STATES SHOULD RATIFY THE UNITED NATIONS CON-
VENTION OF 1956.—It is the sense of the Congress that
the United States should ratify the United Nations Con-
vention of 1956.
(b) TREATMENT OF INTERNATIONAL CHILD SUP-
PORT CASES AS INTERSTATE CASES.—Section 454 (42
260
U.S.C. 654), as amended by sections 404(a), 414(b),
422(a), and 471(a)(2) of this Act, is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(27);
(2) by striking the period at the end of para-
graph (28) and inserting ‘‘; and’’; and
(3) by inserting after paragraph (28) the fol-
lowing:
‘‘(29) provide that the State must treat inter-
national child support cases in the same manner as
the State treats interstate child support cases.’’.
SEC. 473. SEIZURE OF LOTTERY WINNINGS, SETTLEMENTS,
PAYOUTS, AWARDS, AND BEQUESTS, AND
SALE OF FORFEITED PROPERTY, TO PAY
CHILD SUPPORT ARREARAGES.
Section 466(a) (42 U.S.C. 666(a)), as amended by
sections 401(a), 426(a), 431, 442, 466, 467, and 470(a)
of this Act, is amended by inserting after paragraph (18)
the following:
‘‘(19) Procedures, in addition to other income
withholding procedures, under which a lien is im-
posed against property with the following effect:
‘‘(A) The distributor of the winnings from
a State lottery or State-sanctioned or tribal-
sanctioned gambling house or casino shall—
261
‘‘(i) suspend payment of the winnings
from the person otherwise entitled to the
payment until an inquiry is made to and a
response is received from the State child
support enforcement agency as to whether
the person owes a child support arrearage;
and
‘‘(ii) if there is such an arrearage,
withhold from the payment the lesser of
the amount of the payment or the amount
of the arrearage, and pay the amount with-
held to the agency for distribution.
‘‘(B) The person required to make a pay-
ment under a policy of insurance or a settle-
ment of a claim made with respect to the policy
shall—
‘‘(i) suspend the payment until an in-
quiry is made to and a response received
from the agency as to whether the person
otherwise entitled to the payment owes a
child support arrearage; and
‘‘(ii) if there is such an arrearage,
withhold from the payment the lesser of
the amount of the payment or the amount
262
of the arrearage, and pay the amount with-
held to the agency for distribution.
‘‘(C) The payor of any amount pursuant to
an award, judgment, or settlement in any ac-
tion brought in Federal or State court shall—
‘‘(i) suspend the payment of the
amount until an inquiry is made to and a
response is received from the agency as to
whether the person otherwise entitled to
the payment owes a child support arrear-
age; and
‘‘(ii) if there is such an arrearage,
withhold from the payment the lesser of
the amount of the payment or the amount
of the arrearage, and pay the amount with-
held to the agency for distribution.
‘‘(D) If the State seizes property forfeited
to the State by an individual by reason of a
criminal conviction, the State shall—
‘‘(i) hold the property until an inquiry
is made to and a response is received from
the agency as to whether the individual
owes a child support arrearage; and
‘‘(ii) if there is such an arrearage, sell
the property and, after satisfying the
263
claims of all other private or public claim-
ants to the property and deducting from
the proceeds of the sale the attendant costs
(such as for towing, storage, and the sale),
pay the lesser of the remaining proceeds or
the amount of the arrearage directly to the
agency for distribution.
‘‘(E) Any person required to make a pay-
ment in respect of a decedent shall—
‘‘(i) suspend the payment until an in-
quiry is made to and a response received
from the agency as to whether the person
otherwise entitled to the payment owes a
child support arrearage; and
‘‘(ii) if there is such an arrearage,
withhold from the payment the lesser of
the amount of the payment or the amount
of the arrearage, and pay the amount with-
held to the agency for distribution.’’.
SEC. 474. LIABILITY OF GRANDPARENTS FOR FINANCIAL
SUPPORT OF CHILDREN OF THEIR MINOR
CHILDREN.
Section 466(a) (42 U.S.C. 666(a)), as amended by
sections 401(a), 426(a), 431, 442, 466, 467, 470(a), and
264
473 of this Act, is amended by inserting after paragraph
(19) the following:
‘‘(20) Procedures under which each parent of
an individual who has not attained 18 years of age
is liable for the financial support of any child of the
individual to the extent that the individual is unable
to provide such support. The preceding sentence
shall not apply to the State if the State plan explic-
itly provides for such inapplicability.’’.
SEC. 475. SENSE OF THE CONGRESS REGARDING PRO-
GRAMS FOR NONCUSTODIAL PARENTS UN-
ABLE TO MEET CHILD SUPPORT OBLIGA-
TIONS.
It is the sense of the Congress that the States should
develop programs, such as the program of the State of
Wisconsin known as the ‘‘Children’s First Program’’, that
are designed to work with noncustodial parents who are
unable to meet their child support obligations.
Subtitle H—Medical Support
SEC. 481. TECHNICAL CORRECTION TO ERISA DEFINITION
OF MEDICAL CHILD SUPPORT ORDER.
(a) IN GENERAL.—Section 609(a)(2)(B) of the Em-
ployee Retirement Income Security Act of 1974 (29
U.S.C. 1169(a)(2)(B)) is amended—
265
(1) by striking ‘‘issued by a court of competent
jurisdiction’’;
(2) by striking the period at the end of clause
(ii) and inserting a comma; and
(3) by adding, after and below clause (ii), the
following:
‘‘if such judgment, decree, or order (I) is issued
by a court of competent jurisdiction or (II) is
issued by an administrative adjudicator and has
the force and effect of law under applicable
State law.’’.
(b) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendments made by
this section shall take effect on the date of the en-
actment of this Act.
(2) PLAN AMENDMENTS NOT REQUIRED UNTIL
JANUARY 1, 1996.—Any amendment to a plan re-
quired to be made by an amendment made by this
section shall not be required to be made before the
first plan year beginning on or after January 1,
1996, if—
(A) during the period after the date before
the date of the enactment of this Act and be-
fore such first plan year, the plan is operated
266
in accordance with the requirements of the
amendments made by this section, and
(B) such plan amendment applies retro-
actively to the period after the date before the
date of the enactment of this Act and before
such first plan year.
A plan shall not be treated as failing to be operated
in accordance with the provisions of the plan merely
because it operates in accordance with this para-
graph.
SEC. 482. EXTENSION OF MEDICAID ELIGIBILITY FOR FAMI-
LIES LOSING AFDC DUE TO INCREASED
CHILD SUPPORT COLLECTIONS.
Section 402(a) (42 U.S.C. 602(a)), as amended by
the other provisions of this Act, is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(55);
(2) by striking the period at the end of para-
graph (56) and inserting ‘‘; and’’; and
(3) by inserting after paragraph (56) the fol-
lowing:
‘‘(57) provide that each member of a family
which would be eligible for aid under the State plan
but for the receipt of child support payments shall
be considered to be receiving such aid for purposes
267
of eligibility for medical assistance under the State
plan approved under title XIX for so long as the
family would (but for such receipt) be eligible for
such aid.’’.
Subtitle I—Effect of Enactment
SEC. 491. EFFECTIVE DATES.
(a) IN GENERAL.—Except as otherwise specifically
provided (but subject to subsections (b) and (c))—
(1) provisions of this title requiring enactment
or amendment of State laws under section 466 of
the Social Security Act, or revision of State plans
under section 454 of such Act, shall be effective with
respect to periods beginning on and after October 1,
1996; and
(2) all other provisions of this title shall become
effective upon enactment.
(b) GRACE PERIOD FOR STATE LAW CHANGES.—The
provisions of this title shall become effective with respect
to a State on the later of—
(1) the date specified in this title, or
(2) the effective date of laws enacted by the leg-
islature of such State implementing such provisions,
but in no event later than the first day of the first cal-
endar quarter beginning after the close of the first regular
session of the State legislature that begins after the date
268
of enactment of this Act. For purposes of the previous
sentence, in the case of a State that has a 2-year legisla-
tive session, each year of such session shall be deemed to
be a separate regular session of the State legislature.
(c) GRACE PERIOD
FOR STATE CONSTITUTIONAL
AMENDMENT.—A State shall not be found out of compli-
ance with any requirement enacted by this title if it is
unable to comply without amending the State constitution
until the earlier of—
(1) the date one year after the effective date of
the necessary State constitutional amendment, or
(2) the date five years after enactment of this
title.
SEC. 492. SEVERABILITY.
If any provision of this title or the application thereof
to any person or circumstance is held invalid, the invalid-
ity shall not affect other provisions or applications of this
title which can be given effect without regard to the invalid
provision or application, and to this end the provisions of
this title shall be severable.
285
(1) by striking ‘‘and’’ at the end of paragraph
(52);
(2) by striking the period at the end of para-
graph (53) and inserting ‘‘; and’’; and
(3) by inserting after paragraph (53) the fol-
lowing:
‘‘(54) at the option of the State, provide for the
payment of aid under the State plan through the use
of electronic benefit transfer systems.’’.
SEC. 602. DEADLINE FOR ACTION ON APPLICATION FOR
WAIVER OF REQUIREMENT APPLICABLE TO
PROGRAM OF AID TO FAMILIES WITH DE-
PENDENT CHILDREN.
Section 1115 (42 U.S.C. 1315) is amended by adding
at the end the following:
‘‘(e) The Secretary shall approve or deny an applica-
tion for a waiver under this section with respect to a re-
quirement of section 402, not later than 90 days after the
Secretary receives the application, unless otherwise agreed
upon by the Secretary and the applicant.’’.