(1) by striking ‘‘incentive payments’’ the first
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-
tion 458(b) and regulations of the Secretary), and’’
after ‘‘1994,’’.
(2) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is
amended—
(A) in subparagraph (A), in the matter
preceding clause (i)—
(i) by striking ‘‘paternity establish-
ment percentage’’ and inserting ‘‘IV–D pa-
ternity establishment percentage’’; and
(ii) by striking ‘‘(or all States, as the
case may be)’’;
(B) in subparagraph (A)(i), by striking
‘‘during the fiscal year’’;
(C) in subparagraph (A)(ii)(I), by striking
‘‘as of the end of the fiscal year’’ and inserting
‘‘in the fiscal year or, at the option of the
State, as of the end of such year’’;
(D) in subparagraph (A)(ii)(II), by strik-
ing ‘‘or (E) as of the end of the fiscal year’’
and inserting ‘‘in the fiscal year or, at the op-
tion 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
wedlock during the immediately preceding
fiscal year’’ and inserting ‘‘born out of
wedlock’’;
(ii) by striking ‘‘such preceding fiscal
year’’ both places such term appears and
inserting ‘‘the preceding fiscal year’’; and
(iii) by striking ‘‘or (E)’’ the 2nd
place such term appears.
(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 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 so redesig-
nated—
(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 through the system referred to in section
458(a)(3), that the State program in such fiscal
year failed to achieve the reqired paternity establish-
ment 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 performance measures
that may be established by the Secretary; or
‘‘(ii) on the basis of an audit or audits of such
State 
data 
conducted 
pursuant 
to 
section
452(a)(4)(C), that the State data submitted through
the system referred to in section 458(a)(3) is incom-
plete or unreliable; 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
through the system referred to in section
458(a)(3) is incomplete or unreliable,
the amounts otherwise payable to the State under this
part for quarters after the end of the immediately succeed-
ing fiscal year, before quarters occurring after the end of
the 1st quarter throughout which the State program is
in compliance with the performance requirement, shall be
reduced by the percentage specified in paragraph (2) of
this subsection.
‘‘(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
‘‘(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 com-
pliance’’ and all that follows and inserting ‘‘determined as
a result of an audit to have submitted incomplete or unre-
liable data through the system referred to in section
458(a)(3), 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 adversely affect the determination
of the level of the State’s performance.’’.
(f) TEMPORARY
CONTINUED
APPLICABILITY
OF
FORMER INCENTIVE SYSTEM.—Section 458 of the Social
Security Act, as in effect immediately before the enact-
ment of this section, shall remain in effect for purposes
of incentive payments to States for fiscal years before fis-
cal year 1998.
SEC. 207. INCREASED FEDERAL FINANCIAL PARTICIPATION
FOR STATES WITH UNIFIED CHILD SUPPORT
ENFORCEMENT PROGRAMS.
(a) IN GENERAL.—Section 455(a)(2) (42 U.S.C.
655(a)(2)), as amended by sections 205(a) and 206(b) of
this Act, is amended—
(1) by inserting ‘‘(A)’’ after ‘‘(2)’’;
(2) by redesignating subparagraphs (A), (B),
and (C) as clauses (i), (ii), and (iii), respectively;
and
(3) by adding after and below the end the fol-
lowing:
‘‘(B) The percent described in this paragraph for a
State for a quarter in a fiscal year shall be the percent
specified in subparagraph (A) for the fiscal year increased
by 5 percentage points if the following apply to the State
child support enforcement program:
‘‘(i) All authority, accountability, and respon-
sibility for the program is centered at the State level
in a unified State agency.
‘‘(ii) The program is administered by a single
agency, and policymaking for the program is central-
ized.
‘‘(iii) There is statewide uniformity of case-
processing procedures and forms.
‘‘(iv) There is a uniform hearing and appeal
process.
‘‘(v) All financing decisions are made at the
State level.
‘‘(vi) All non-Federal funding is appropriated at
the State level.
‘‘(vii) All personnel and contracting decision
making is made by the State agency, and all person-
nel are employees of the State agency, except that
the Secretary may by regulation establish exceptions
with respect to not more than 10 percent of person-
nel.’’.
(b) CONFORMING AMENDMENT.—Section 455(c) (42
U.S.C. 655(c)), as added by section 205 of this Act, is
amended by striking ‘‘(a)(2)’’ and inserting ‘‘(a)(2)(A)’’.
SEC. 208. NEW CHILD SUPPORT AUDIT PROCESS.
(a) IN GENERAL.—After consultation with the Child
Support Audit Advisory Committee, the Secretary of
Health and Human Services shall—
(1) in accordance with subsection (b), promul-
gate new criteria and standards for conducting re-
views under section 452(a)(4) of the Social Security
Act and establishing a system for the reporting of
data relevant to such reviews, which emphasize pro-
gram outcomes; and
(2) not later than the 1st day of the 12th cal-
endar month beginning after the date of the enact-
ment of this Act, recommend to the Congress such
legislation as may be necessary, with respect to the
financing of State child support programs under
part D of title IV of the Social Security Act, to en-
hance the effectiveness of such audits and the asso-
ciated penalty process under section 403(h) of the
Social Security Act.
(b) TIMING.—
(1) NOTICE OF PROPOSED RULEMAKING.—Not
later than 270 days after the date of the enactment
of this Act, the Secretary of Health and Human
Services shall issue a notice of proposed rulemaking
with respect to the audit criteria and standards re-
quired by subsection (a)(1).
(2) FINAL REGULATIONS.—Not later than the
first day of the 12th calendar month beginning after
the date of the enactment of this Act, and after al-
lowing not less than 45 days for public comment on
the proposed rulemaking required by paragraph (1)
of this subsection, the Secretary of Health and
Human Services shall issue final regulations with re-
spect to the audit criteria and standards required by
subsection (a)(1).
SEC. 209. 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’’).
(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,
1996, 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.
(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.
(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. 210. CHILD SUPPORT AUDIT ADVISORY COMMITTEE.
(a) ESTABLISHMENT.—Not later than 60 days after
the date of the enactment of this Act, the Secretary of
Health and Human Services (in this section referred to
as the ‘‘Secretary’’) shall establish a committee which
shall be known as the Child Support Audit Advisory Com-
mittee (in this section referred to as the ‘‘Committee’’).
(b) DUTIES.—The Committee shall assist the Sec-
retary in—
(1) developing revised audit criteria and stand-
ards to be used pursuant to section 452(a)(4) of the
Social Security Act based on—
(A) common data elements which are de-
fined, collected, and reported in a uniform man-
ner from each State;
(B) numeric measures of the outcomes of
the child support enforcement program under
part D of title IV of such Act; and
(C) numeric measures for assessing com-
pliance with the regulations issued by the Sec-
retary pursuant to subsections (h) and (i) of
section 452 of such Act;
(2) formulating a definition of substantial com-
pliance that is based on such revised audit criteria
and standards;
(3) determining the period of time after interim
or final Federal regulations are issued implementing
such revised audit criteria and standards after which
a State may be audited to determine compliance
with such regulations; and
(4) recommending to the Congress such legisla-
tion as may be necessary, with respect to the financ-
ing of child support programs under part D of title
IV of such Act, to enhance the effectiveness of au-
dits required to be conducted under section
452(a)(4) of such Act and the associated penalty
process under section 403(h) of such Act.
(c) MEMBERSHIP.—The Committee shall be com-
posed of not less than 6 members appointed by the Sec-
retary, including—
(1) at least 1 director of a State child support
enforcement program operating under part D of title
IV of the Social Security Act;
(2) at least 1 commissioner of a State human
services agency;
(3) individuals who have demonstrated expertise
in the development of quantitative and qualitative
measures for performance-based audits; and
(4) at least 2 representatives of recipients of
child support enforcement services.
(d) PROCEDURE.—
(1) PARTICIPATION OF THE SECRETARY.—The
Secretary (or a designee of the Secretary) shall be
an ex officio member of the Committee, and shall
not vote on matters before the Committee.
(2) MEETINGS.—The Committee shall meet at
the call of the Secretary or a designee of the Sec-
retary.
(e) COMPENSATION.—
(1) IN GENERAL.—No member of the Commit-
tee may receive compensation for service on the
Committee.
(2) TRAVEL EXPENSES.—Each member of the
Committee shall receive travel expenses, including
per diem in lieu of subsistence, in accordance with
sections 5702 and 5703 of title 5, United States
Code.
(f) ADMINISTRATIVE SUPPORT.—Upon request of the
Committee, the Secretary shall provide to the Committee
the administrative support services necessary for the Com-
mittee to carry out its duties under this Act.
(g) INAPPLICABILITY OF THE FEDERAL ADVISORY
COMMITTEE ACT.—The Federal Advisory Committee Act
shall not apply to the Committee.
(h) REPORT.—Within 180 days after the date of the
enactment of this Act, the Committee shall submit to the
Secretary a report that contains proposed criteria and
standards for conducting audits under section 452(a)(4)
of the Social Security Act, which emphasize program out-
comes.
Subtitle B—Paternity
Establishment
SEC. 211. PATERNITY ESTABLISHMENT PROCEDURES.
(a) IN GENERAL.—Section 466(a)(5) (42 U.S.C.
666(a)(5)) is amended by striking subparagraphs (C) and
(D) and inserting the following:
‘‘(C)(i) Procedures for a simple civil process for
voluntarily acknowledging paternity under which the
State must provide that, before a mother and a pu-
tative father can sign an acknowledgment of pater-
nity, the putative father and the mother must be
given notice, orally, in writing, and in a language
that each can understand, of the alternatives to, the
legal consequences of, and the rights (including, if 1
parent is a minor, any rights afforded due to minor-
ity status) and responsibilities that arise from, sign-
ing the acknowledgment.
‘‘(ii) Such procedures must include a hospital-
based program for the voluntary acknowledgment of
paternity focusing on the period immediately 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 establishment services.
‘‘(iv) The Secretary shall prescribe regulations
governing voluntary paternity establishment services
offered by hospitals and birth record agencies. The
Secretary shall prescribe regulations specifying the
types of other entities that may offer voluntary pa-
ternity establishment services, and governing the
provision of such services, which shall include a re-
quirement 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 evaluate the
provision of such services in the same manner as,
voluntary paternity establishment programs of hos-
pitals and birth record agencies.
‘‘(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.
title XIX, prenatal health-care providers, WIC
programs, health departments, clinics, and
other appropriate locations, that describe the
benefits and responsibilities of paternity estab-
lishment and the process by which paternity
services may be obtained; and
‘‘(B) outreach programs at hospitals and
birthing facilities and programs for prenatal
care, child birth, and parenting, in accordance
with regulations which shall be prescribed by
the Secretary not later than 1 year after such
effective date.’’.
(b) 
ENHANCED
FEDERAL
MATCH.—Section
455(a)(1) (42 U.S.C. 655(a)(1)) is amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (B);
(2) by inserting ‘‘and’’ at the end of subpara-
graph (C); and
(3) by inserting after subparagraph (C) the fol-
lowing:
‘‘(D) equal to 90 percent (rather than the
percentage specified in subparagraph (A)) of so
much of the sums expended during such quar-
ter as are attributable to costs incurred in car-
rying out section 454(25);’’.
SEC. 213. STRENGTHENING CIVIL PROCEDURES FOR PA-
TERNITY ESTABLISHMENT.
Section 466(a) (42 U.S.C. 666(a)) is amended by in-
serting after paragraph (11) the following:
‘‘(12) As part of the State’s civil procedures for
establishment of paternity, the State shall—
‘‘(A) allow for expedited procedures for or-
dering genetic tests upon the birth of a child if
the putative father of the child has not ac-
knowledged paternity of the child;
‘‘(B) authorize the State agency to order
all parties to a paternity action to submit to ge-
netic testing upon request of any party or if the
putative father denies paternity or fails to ap-
pear at any scheduled conference to respond to
the allegation of paternity;
‘‘(C)(i) advance the costs of genetic tests,
subject to recoupment from the putative father
of a child if he is determined to be the biologi-
cal father of the child; and
‘‘(ii) if the result of genetic testing done by
a laboratory is disputed, then, upon reasonable
request of any party, order that additional test-
ing be done by the same laboratory or by an
independent laboratory at the expense of the re-
questing party;
‘‘(D) authorize the State to forgive costs
incurred by the State for delivery medical ex-
penses or payments of aid under the State plan
approved under part A (but not forgive debts
owed to the mother) if the father of the child
cooperates or acknowledges paternity before or
after the completion of a genetic test;
‘‘(E) authorize the State agency to enter
default orders to establish paternity if a party
refuses to comply with an order to submit to
genetic testing;
‘‘(F) prohibit the use of hearings by a
court or administrative agency to ratify an ac-
knowledgement of paternity;
‘‘(G) allow a putative father of a child (if
not presumed to be the father under State law)
standing to bring paternity actions;
‘‘(H) after paternity of a child is estab-
lished by affidavit, and until an action for cus-
tody of the child is brought and heard by a tri-
bunal, presume that the primary caretaker of a
child born out of wedlock has physical custody
of the child (with the mother presumed to be
the primary caretaker of a newborn child whose
paternity is established by affidavit in a hos-
pital), unless the mother and father of the child
agree that physical custody should be with an-
other individual;
‘‘(I) upon motion by a party, require a tri-
bunal in contested cases to order the absent
parent of a child to provide child support with
respect to the child on a temporary basis in ac-
cordance with State law if—
‘‘(i) the results of parentage testing
create a rebuttable presumption that the
putative parent is a parent of the child;
‘‘(ii) the person from whom support is
sought has signed a verified statement of
parentage of the child; or
‘‘(iii) there is other clear and convinc-
ing evidence that the person from whom
support is sought is a parent of the child;
‘‘(J) repeal any law that provides for pa-
ternity cases to be tried by a jury, except to the
extent that such a trial is required by the State
constitution; and
‘‘(K) have and use laws that provide for
the introduction and admission into evidence,
without need for third-party foundation testi-
mony, of pre-natal and post-natal birth-related
and parentage-testing bills, under which such a
bill shall be regarded as prima facie evidence of
the amount incurred on behalf of the child for
the procedures included in the bill.’’.
SEC. 214. PENALTY FOR FAILURE TO ESTABLISH PATER-
NITY PROMPTLY.
Section 403 (42 U.S.C. 603) is amended by inserting
after subsection (h) the following:
‘‘(i) PENALTY FOR FAILURE TO ESTABLISH PATER-
NITY PROMPTLY.—
‘‘(1) IN
GENERAL.—The amounts otherwise
payable under subsection (a) to a State for any cal-
endar quarter beginning 10 months or more after
the date of the enactment of this subsection shall be
reduced by an amount, determined pursuant to regu-
lations in accordance with paragraph (2), for certain
children for whom paternity has not been estab-
lished.
‘‘(2) REDUCTION
FORMULA.—The Secretary
shall promulgate regulations specifying the formula
for the reduction required under this subsection,
which formula shall provide for a reduction in Fed-
eral matching payments to a State under this sec-
tion by an amount equal to the product of—
‘‘(A) the number (after allowing for the
tolerance level established under paragraph (3))
of children born on or after the date that is 10
months after the date of the enactment of this
subsection—
‘‘(i) who are receiving aid under the
State plan approved under part A;
‘‘(ii) whose custodial relatives have,
throughout the preceding 12-month period,
complied with the cooperation require-
ments 
specified 
in 
section
402(a)(26)(B)(i); and
‘‘(iii) for whom paternity has not been
established;
‘‘(B) the average monthly assistance pay-
ment under the State plan approved under this
part; and
‘‘(C) the Federal matching rate applicable
to the assistance payment.
‘‘(3) TOLERANCE LEVEL.—
‘‘(A) IN GENERAL.—For purposes of para-
graph (2)(A), the tolerance level shall not be
higher than the applicable percentage of chil-
dren in the State described in paragraph (1),
and may decrease over time to make allowance
for a State’s inability to establish paternity in
all cases.
‘‘(B) APPLICABLE PERCENTAGE.—As used
in subparagraph (A), the term ‘applicable per-
centage’ means—
‘‘(i) 25 percent for fiscal years 1997
and 1998;
‘‘(ii) 20 percent for fiscal years 1999
and 2000;
‘‘(iii) 15 percent for fiscal years 2001
and 2002; and
‘‘(iv) 10 percent for fiscal year 2003
and each succeeding fiscal year.’’.
Subtitle C—Enforcement
SEC. 221. ACCESS TO FINANCIAL RECORDS.
Section 466(a) (42 U.S.C. 666(a)), as amended by
section 213 of this Act, is amended by inserting after
paragraph (12) the following:
‘‘(13) Procedures under which the State may
obtain access to financial records maintained by any
financial institution doing business in the State, for
the purpose of establishing, modifying, or enforcing
a child support obligation of the person.’’.
SEC. 222. PRESUMED ADDRESS OF OBLIGOR AND OBLIGEE.
Section 466(a) (42 U.S.C. 666(a)), as amended by
sections 213 and 221 of this Act, is amended by inserting
after paragraph (13) the following:
‘‘(14) Procedures under which the State shall—
‘‘(A) require the court or administrative
agency with authority to issue the final order in
a child support or parentage case to require
each party subject to the order to file with the
court or administrative agency, on or before the
date the order is issued—
‘‘(i) the party’s residential address or
addresses;
‘‘(ii) the party’s mailing address or
addresses;
‘‘(iii) the party’s home telephone num-
ber or numbers;
‘‘(iv) the party’s driver’s license num-
ber and the State that issued the license;
‘‘(v) the party’s social security ac-
count number;
‘‘(vi) the name of each employer of
the party;
‘‘(vii) the addresses of each place of
employment of the party; and
‘‘(viii) the party’s work telephone
number or numbers; and
‘‘(B) require the court or administrative
agency in any action related to child support to
presume, for the purpose of providing sufficient
notice (other than the initial notice in an action
to establish parentage or a child support order),
that the parent resides at the last residential
address given by the parent to the court or
agency.’’.
SEC. 223. FAIR CREDIT REPORTING ACT AMENDMENT.
Section 604 of the Consumer Credit Protection Act
(15 U.S.C. 1681b) is amended by adding at the end the
following:
‘‘(4) To a State agency administering a State plan
under section 454 of the Social Security Act, for use to
establish, modify, or enforce a child support award.’’.
SEC. 224. ADDITIONAL BENEFITS SUBJECT TO GARNISH-
MENT.
(a) FEDERAL DEATH BENEFITS, BLACK LUNG BEN-
EFITS, AND VETERANS BENEFITS.—Section 462(f)(2) (42
U.S.C. 662(f)(2)) is amended by striking ‘‘(not including’’
and all that follows through ‘‘compensation)’’.
(b) WORKERS’ COMPENSATION.—Section 462(f) (42
U.S.C. 662(f)) is amended—
100
(1) by striking ‘‘or’’ at the end of paragraph
(1);
(2) by striking the period at the end of para-
graph (2) and inserting ‘‘, or’’; and
(3) by adding at the end the following:
‘‘(3) workers’ compensation benefits.’’.
SEC. 225. HOLD ON OCCUPATIONAL, PROFESSIONAL, AND
BUSINESS LICENSES.
(a) STATE HOLD BASED ON WARRANT OR SUPPORT
DELINQUENCY.—Section 466(a) (42 U.S.C. 666(a)), as
amended by sections 213, 221, and 222 of this Act, is
amended by inserting after paragraph (14) the following:
‘‘(15) Procedures under which the State occu-
pational licensing and regulating departments and
agencies (other than the department or agency re-
sponsible for licensing the operation of motor vehi-
cles) may not issue or renew any occupational, pro-
fessional, or business license of—
‘‘(A) a noncustodial parent who is the sub-
ject of an outstanding failure to appear war-
rant, capias, or bench warrant related to a child
support proceeding that appears on the State’s
crime information system, until removed from
the system; or
101
‘‘(B) an individual who is delinquent in the
payment of child support, until the obligee or a
State entity responsible for child support en-
forcement consents to, or a court or administra-
tive agency that is responsible for the order’s
enforcement orders, the release of the hold on
the license, or an expedited inquiry and review
is completed while the individual is granted a
60-day temporary license.’’.
(b) FEDERAL HOLD BASED ON SUPPORT DELIN-
QUENCY.—A Federal agency may not issue or renew any
occupational, professional, or business license of an indi-
vidual who is delinquent in the payment of child support,
until the obligee, the obligee’s attorney or a State entity
responsible for child support enforcement consents to, or
a court or administrative agency that is responsible for
the order’s enforcement orders, the release of the hold on
the license, or an expedited inquiry and review is com-
pleted while the individual is granted a 60-day temporary
license.
102
SEC. 226. DRIVER’S LICENSES AND VEHICLE REGISTRA-
TIONS DENIED TO PERSONS FAILING TO AP-
PEAR IN CHILD SUPPORT CASES.
Section 466(a) (42 U.S.C. 666(a)), as amended by
sections 213, 221, 222, and 225 of this Act, is amended
by inserting after paragraph (15) the following:
‘‘(16) Procedures under which—
‘‘(A) the State motor vehicle department—
‘‘(i) may not issue or renew the driv-
er’s license or any vehicle registration
(other than temporary) of any noncustodial
parent who is the subject of an outstand-
ing failure to appear warrant, capias, or
bench warrant related to a child support
proceeding that appears on the State’s
crime information system, until removed
from the system; and
‘‘(ii) in any case in which a show
cause order has been issued as described in
subparagraph (B), may grant a temporary
license or vehicle registration to the indi-
vidual pending the show cause hearing or
the removal of the warrant, whichever oc-
curs first; and
‘‘(B) a State court, upon receiving notice
that an individual to whom a State driver’s li-
103
cense or vehicle registration has been issued is
the subject of a warrant related to a child sup-
port proceeding, shall issue a show cause order
to the individual requesting the individual to
demonstrate why the individual’s driver’s li-
cense or vehicle registration should not be sus-
pended until the warrant is removed by the
State responsible for issuing the warrant.’’.
SEC. 227. LIENS.
Section 466(a) (42 U.S.C. 666(a)), as amended by
sections 213, 221, 222, 225, and 226 of this Act, is
amended by inserting after paragraph (16) the following:
‘‘(17) Procedures under which the State shall
systematically place liens on all nonexempt real and
titled personal property for child support arrearages
determined under a court order or an order of an
administrative process established under State law,
using a method for updating the value of the lien on
a regular basis or allowing for an expedited inquiry
to and response from a State child support order
registry established pursuant to paragraph (20)(A)
for proof of the amount of arrears, with an expe-
dited method for the titleholder or the individual
owing the arrearage to contest the arrearage or to
request a release upon fulfilling the support obliga-
104
tion, and under which such a lien has precedence
over all other encumbrances on a title to personal
property other than a purchase money security inter-
est, and that the individual owed the arrearage may
execute on, seize, and sell the property in accordance
with State law.’’.
SEC. 228. FRAUDULENT TRANSFER PURSUIT.
Section 466(a) (42 U.S.C. 666(a)), as amended by
sections 213, 221, 222, 225, 226, and 227 of this Act,
is amended by inserting after paragraph (17) the follow-
ing:
‘‘(18) Procedures requiring that, in any case re-
lated to child support, any transfer of property for
significantly less than the fair market value of the
property by an individual who owes a child support
arrearage shall be presumed to be made with the in-
tent to avoid payment of the arrearage, and may be
rebutted by evidence to the contrary.’’.
SEC. 229. REPORTING OF CHILD SUPPORT ARREARAGES TO
CREDIT BUREAUS.
Section 466(a)(7)(A) (42 U.S.C. 666(a)(7)(A)) is
amended by striking ‘‘$1,000’’ and inserting ‘‘the amount
of the monthly support obligation’’.
105
SEC. 230. DENIAL OF PASSPORTS TO NONCUSTODIAL PAR-
ENTS SUBJECT TO STATE ARREST WARRANTS
IN CASES OF NONPAYMENT OF CHILD SUP-
PORT.
The Secretary of State is authorized to refuse a pass-
port or revoke, restrict, or limit a passport in any case
in which the Secretary of State determines or is informed
by competent authority that the applicant or passport
holder is a noncustodial parent who is the subject of an
outstanding State warrant of arrest for nonpayment of
child support, where the amount in controversy is not less
than $10,000.
SEC. 231. STATUTES OF LIMITATION.
(a) IN
GENERAL.—Section 466(a) (42 U.S.C.
666(a)), as amended by sections 213, 221, 222, 225, 226,
227, and 228 of this Act, is amended by inserting after
paragraph (18) the following:
‘‘(19) Procedures which permit the enforcement
of any child support order until the child attains at
least 30 years of age.’’.
(b) APPLICABILITY.—The amendment made by this
section shall apply to orders entered before, on, and after
the date of the enactment of this Act.
106
SEC. 232. COLLECTION OF PAST-DUE SUPPORT USING TAX
COLLECTION AUTHORITY.
(a) EXPANDED ROLE OF THE INTERNAL REVENUE
SERVICE.—
(1) IN GENERAL.—Section 6305 of the Internal
Revenue Code of 1986 (relating to collection of cer-
tain liability) is amended by redesignating sub-
sections (a) and (b) as subsections (b) and (c), re-
spectively, and by inserting before subsection (b) (as
so redesignated) the following new subsection:
‘‘(a) IN GENERAL.—The head of any State child sup-
port order registry established pursuant to section
466(a)(20)(A) of the Social Security Act may certify to
the Secretary for collection under this subsection the
amount of any child support obligation. No amount may
be certified under the preceding sentence except the
amount of the delinquency under a court or administrative
order for support and upon a showing by such agency head
that such State has made reasonable efforts to collect such
amount using its own collection mechanisms.’’
(2) CONFORMING AMENDMENTS.—
(A) Subsection (b) of section 6305 of such
Code (as redesignated by subsection (a)) is
amended by striking ‘‘Upon receiving’’ and all
that follows through ‘‘Welfare’’ the second place
107
it appears and inserting ‘‘Upon receiving a cer-
tification referred to in subsection (a)’’.
(B) Subsection (c) of section 6305 of such
Code (as redesignated by subsection (a)) is
amended by striking ‘‘subsection (a)’’ and in-
serting ‘‘subsection (b)’’.
(b) COLLECTION OF PAST-DUE SUPPORT USING RE-
FUND OFFSET.—
(1) IN
GENERAL.—Subsection (c) of section
6402 of such Code is amended to read as follows:
‘‘(c) OFFSET
OF
PAST-DUE
SUPPORT
AGAINST
OVERPAYMENTS.—
‘‘(1) IN GENERAL.—Upon receiving notice from
any State registry that an individual owes past-due
support, the Secretary shall determine whether any
amounts, as refunds of Federal taxes paid, are pay-
able to such individual (regardless of whether such
individual filed a tax return as a married or unmar-
ried individual). If the Secretary finds that any such
amount is payable, the Secretary—
‘‘(A) shall withhold from such refunds an
amount equal to the past-due support,
‘‘(B) shall concurrently send a notice to
such individual that the withholding has been
made (including in or with such notice a notifi-
108
cation to any other individual who may have
filed a joint return with such individual of the
steps which such other individual may take in
order to secure his or her proper share of the
refund), and
‘‘(C) shall pay such amount to such reg-
istry (together with notice of the individual’s
home address).
‘‘(2) PROCEDURE.—
‘‘(A) IN GENERAL.—Prior to notifying the
Secretary under paragraph (1) that an individ-
ual owes past-due support, the head of the
State registry shall send notice to such individ-
ual that a withholding will be made from any
refund otherwise payable to such individual.
The notice shall also (i) instruct the individual
owing the past-due support of the steps which
may be taken to contest the State registry’s de-
termination that past-due support is owed or
the amount of the past-due support, and (ii)
provide information, as may be prescribed by
the Secretary of Health and Human Services by
regulation in consultation with the Secretary,
with respect to procedures to be followed, in the
case of a joint return, to protect the share of
109
the refund which may be payable to another in-
dividual.
‘‘(B) SPECIAL RULES FOR OFFSETS AGAINST
OVERPAYMENTS ON JOINT RETURNS.—
‘‘(i) IN
GENERAL.—If the Secretary
determines that an amount should be with-
held under paragraph (1), and that the re-
fund from which it should be withheld is
based upon a joint return, the Secretary
shall notify the State registry that the
withholding is being made from a refund
based upon a joint return, and shall fur-
nish to the State registry the names and
addresses of each spouse filing such joint
return.
‘‘(ii) SHARE OF REFUND PAYABLE TO
SPOUSE NOT OWING PAST-DUE SUPPORT.—
If the other individual filing the joint re-
turn with the named individual owing the
past-due support takes appropriate action
to secure his or her proper share of a re-
fund from which a withholding was made
under paragraph (1), the Secretary shall
pay such share to such other individual.
The Secretary shall deduct the amount of
110
such payment from amounts subsequently
payable to the State registry to which the
amount originally withheld from such re-
fund was paid.
‘‘(C) ERRONEOUS OFFSETS.—In any case
in which an amount was withheld under para-
graph (1) and paid to a State registry, and the
State registry subsequently determines that the
amount certified as past-due support was in ex-
cess of the amount actually owed at the time
the amount withheld is to be distributed to or
on behalf of the child, the State registry shall
pay the excess amount withheld to the named
individual thought to have owed the past-due
support (or, in the case of amounts withheld on
the basis of a joint return, jointly to the parties
filing such return).
‘‘(3) REGULATIONS; 
CONTENTS, 
ETC.—The
Secretary shall issue regulations, approved by the
Secretary of Health and Human Services, prescrib-
ing the time or times at which State registries must
submit notices of past-due support, the manner in
which such notices must be submitted, and the nec-
essary information that must be contained in or ac-
company the notices. The regulations—
111
‘‘(A) shall be consistent with the provisions
of paragraph (2),
‘‘(B) shall specify the minimum amount of
past-due support to which the offset procedure
established by paragraph (1) may be applied,
and
‘‘(C) shall provide that the Secretary will
advise the Secretary of Health and Human
Services, not less frequently than annually, of—
‘‘(i) the State registries which have
furnished notices of past-due support
under paragraph (1) of this subsection,
‘‘(ii) the number of cases in each
State with respect to which such notices
have been furnished,
‘‘(iii) the amount of support sought to
be collected under this subsection by each
State registry, and
‘‘(iv) the amount of such collections
actually made in the case of each State
registry.
‘‘(4) STATE REGISTRY.—For purposes of this
subsection, the term ‘State registry’ means any
State child support order registry established pursu-
112
ant to section 466(a)(20)(A) of the Social Security
Act.
‘‘(5) PAST-DUE
SUPPORT.—For purposes of
this subsection, the term ‘past-due support’ means
the amount of a delinquency, determined under a
court order, or an order of an administrative process
established under State law, for support (including
medical support) and maintenance of a child, or of
a child and the parent with whom the child is living.
‘‘(6) SUBSECTION APPLIED BEFORE CREDITING
TO FUTURE LIABILITY.—This subsection shall be ap-
plied to an overpayment prior to its being credit to
a taxpayer’s future liability for any internal revenue
tax.’’
(2) CONFORMING AMENDMENT.—Paragraph (2)
of section 6402(d) of such Code is amended by strik-
ing ‘‘with respect to past-due support collected pur-
suant to an assignment under section 402(a)(26) of
the Social Security Act’’.
(c) ELIMINATION OF THE ROLE OF THE SECRETARY
OF HEALTH AND HUMAN SERVICES.—
(1) Section 464 (42 U.S.C. 664) is hereby re-
pealed.
(2) Section 452 (42 U.S.C. 652) is amended by
striking subsections (b) and (c).
113
Subtitle D—State Responsibilities
SEC. 241. STATE ROLE.
(a) STATE CHILD SUPPORT ORDER REGISTRIES,
ETC.—
(1) IN GENERAL.—Section 466(a) (42 U.S.C.
666(a)), as amended by subtitle C of this title, is
amended by inserting after paragraph (19) the fol-
lowing:
‘‘(20) Procedures under which—
‘‘(A) the State child support enforcement
agency shall—
‘‘(i) establish an automated central
child support order registry (including, at
State option, by integrating local registries
through computers, if the cost of such inte-
gration does not exceed the cost of a single
centralized registry) which shall maintain a
current record of—
‘‘(I) each child support order is-
sued, modified, or registered in the
State under the State plan;
‘‘(II) each child support order is-
sued, modified, or being enforced in
the State after the effective date of
this paragraph; and
114
‘‘(III) any other child support
order, at the request of a party to the
order;
‘‘(ii) for each such child support
order, record the amount of support or-
dered and maintain a record of payments
under the order;
‘‘(iii) prepare a support abstract that
conforms to the child support order ab-
stract 
developed 
pursuant 
to 
section
452(a)(1)), forward the abstract to the
Federal child support order registry estab-
lished under section 203 of the Family
Self-Sufficiency Act of 1994, and enter the
abstract into the State registry for pur-
poses of matching against other data bases
on a regular basis;
‘‘(iv) program the statewide auto-
mated system to extract weekly updates
automatically of all case records included
in the State registry;
‘‘(v) provide a central point of access
to the Federal new-hire reporting directory
and other Federal data bases, statewide
data bases, and interstate case activity;
115
‘‘(vi) routinely match information in
the State registry against other State data
bases to which the agency has access;
‘‘(vii) use a national identification
number, preferably the social security ac-
count number, for all individuals or cases
as determined by the Secretary;
‘‘(viii) maintain procedures (such as
notification to parents) to ensure that ar-
rearages do not accrue after the child for
whom support is ordered is no longer eligi-
ble for support or the order becomes in-
valid;
‘‘(ix) use technology and automated
procedures in operating the State registry
wherever feasible and cost-effective;
‘‘(x) ensure that the amount of any
interest due with respect to delinquent
child support obligations can be automati-
cally calculated;
‘‘(xi) ensure that the State registry
has access to vital statistics or other infor-
mation necessary to provide the Secretary
with such information as the Secretary
116
may require in order to apply the formula
provided for in section 403(i);
‘‘(xii) use the State registry (whether
centralized or established through the inte-
gration of local registries)—
‘‘(I) as a clearinghouse for the
centralized collection and disburse-
ment of child support payments, ena-
bling the functions to be carried out
(by the State or a private entity) at 1
location within the State, and through
a fully automated process (including,
at State option, through multi-State
regional 
cooperative 
agreements
through 1 ‘drop box’ location with
computer linkage to the individual
State registries); and
‘‘(II) as the central payment cen-
ter—
‘‘(aa) for all employers re-
mitting child support withheld
from wages; and
‘‘(bb) for all payments not
made through wage withholding,
through the use of payment cou-
117
pons 
or 
stubs 
or 
electronic
means, unless otherwise agreed
by the parties to the order and
the court or administrative agen-
cy that issued or modified the
order (which agreement may be
unilaterally rescinded by the indi-
vidual to whom child support is
payable under the order or by the
individual obligated to pay child
support under the order, without
permission of any court or ad-
ministrative agency), and, at
State option, payments may be
made at local offices or financial
institutions only if the payments
are remitted to the State registry
by the local office or financial in-
stitution for payment processing
by electronic funds transfer with-
in 24 hours after receipt; and
‘‘(xiii) require the State registry to—
‘‘(I) accept all payments for child
support by any means of transfer;
118
‘‘(II) generate bills which provide
for accurate payment identification,
such as return stubs or coupons, for
cases with respect to which wage with-
holding is not required;
‘‘(III) identify all payments made
to the State registry and match the
payment to the correct child support
case record;
‘‘(IV) distribute all collections as
required by law;
‘‘(V) disburse to custodial par-
ents child support payments that are
payable to such parents, including
through the use of direct deposit upon
the request of the custodial parent;
‘‘(VI) process and send to custo-
dial parents child support payments
that are payable to such parents with-
in 24 hours after receipt;
‘‘(VII) maintain records of trans-
actions and the status of all accounts,
including arrears, and monitor all
payments of support;
119
‘‘(VIII) develop automatic mon-
itoring procedures for all cases where
a disruption in payments triggers
automatic enforcement mechanisms;
‘‘(IX) accept and transmit inter-
state collections to other States, when-
ever possible, using electronic funds
transfer technology; and
‘‘(X) when necessary, change
payees in child support cases adminis-
tratively, with notice to both parties;
‘‘(B) each child support order issued or
modified in the State is required to be transmit-
ted to the registry within such period of time
after the issuance or modification as the Sec-
retary shall prescribe in regulations; and
‘‘(C) the State shall—
‘‘(i) prohibit any State agency from
imposing a fee on any custodial or
noncustodial parent for inclusion in the
State registry, or imposing any new fee on
a custodial parent for routine establish-
ment, enforcement, or modification of
cases handled through the State registry;
120
‘‘(ii) have automated procedures to
monitor cases and impose those enforce-
ment measures that can be handled on a
mass or group basis using computer auto-
mation technology, by—
‘‘(I) monitoring all cases within
the State registry on a regular basis,
determining on at least a monthly
basis whether the child support pay-
ment has been made;
‘‘(II) maintaining automation ca-
pability whereby a disruption in pay-
ments triggers automatic enforcement
mechanisms; and
‘‘(III) administratively imposing
measures such as—
‘‘(aa) ordering wages to be
withheld automatically for the
purposes of satisfying child sup-
port obligations, and directing
wage withholding orders to em-
ployers immediately upon notifi-
cation by the Federal child sup-
port order registry established
121
under section 203(a) of the Fam-
ily Self-Sufficiency Act of 1990;
‘‘(bb) attaching accounts at
financial institutions, including,
at State option, freezing with-
drawals from such accounts and,
if the freeze is not challenged,
turning over the part of the ac-
count subject to the freeze up to
the amount of the child support
debt to the person or State seek-
ing the support;
‘‘(cc) 
intercepting 
certain
lump-sum monies such as lottery
winnings and settlements to be
turned over to the State to sat-
isfy pending arrearages;
‘‘(dd) attaching public and
private retirement funds in ap-
propriate cases, as determined by
the Secretary;
‘‘(ee) attaching unemploy-
ment 
compensation, 
worker’s
compensation, and other State
benefits;
122
‘‘(ff) 
increasing 
required
payments to cover arrearages;
‘‘(gg) intercepting State tax
refunds; and
‘‘(hh) submitting cases for
Federal tax refund offset; and
‘‘(iii) be able to provide parents with
up-do-date information on payments that
are not past due, payments that are past
due, and general information on available
child support services;
‘‘(D) child support arrears with respect to
cases in the State registry are considered judg-
ments by operation of law, and reducing the
amount of such arrears to money judgments is
not a prerequisite to enforcement;
‘‘(E) all cases in the State registry shall
receive services offered by the registry without
regard to whether an application for such serv-
ices has been made; and
‘‘(F) the State agency referred to in sec-
tion 402(a)(3) shall notify the State child sup-
port enforcement agency of the commencement
or termination of aid under the State plan ap-
proved under part A to any individual or fam-
123
ily, within 10 days after the commencement or
termination.’’.
(2) 
CONFORMING
AMENDMENT.—Section
466(b) (42 U.S.C. 666(b)) is amended by striking
paragraph (5).
(b) WAGE WITHHOLDING.—
(1) IN GENERAL.—Section 466(b) (42 U.S.C.
666(b)) is amended by adding at the end the follow-
ing:
‘‘(11)(A)(i) Upon the issuance or modification
by a State court or administrative agency of an
order imposing a child support obligation on an indi-
vidual, the State shall transmit to any employer of
the individual a wage withholding order developed
under section 452(a)(11) directing the employer to
withhold amounts from the wages of the individual
pursuant to the order, or such greater amount as
the State child support order registry established
pursuant to subsection (a)(20)(A) may determine is
the total amount of the child support obligations of
the individual.
‘‘(ii) Clause (i) shall not apply to an order upon
agreement of the parties to the order and the court
or administrative agency that issued or modified the
order.
124
‘‘(iii) An agreement referred to in clause (ii)
may be unilaterally rescinded by the individual to
whom child support is payable under the order or by
the individual obligated to pay child support under
the order, without permission of any court or admin-
istrative agency.
‘‘(B) Any individual or entity engaged in com-
merce, as a condition of doing business in the State,
shall, on receipt of a wage withholding order devel-
oped under section 452(a)(11) that is regular on its
face and has been issued by a court or administra-
tive agency of any State—
‘‘(i) immediately provide a copy of the
order to the employee subject to the order;
‘‘(ii) comply with the order by forwarding
to the State registry established pursuant to
subsection (a)(20)(A) of this section, within 5
days after the end of each payroll period ending
after receipt of the order, the greater of—
‘‘(I) the amount required to be with-
held pursuant to the order; or
‘‘(II) the amount that the State reg-
istry has notified the individual or family
is the amount required to be withheld from
the wages of the employee for payment of
125
child support obligations of the employee;
and
‘‘(iii) keep records of the amounts so with-
held and the dates of such withholding.
‘‘(C) Such an order may be served on the indi-
vidual or entity directly or by first-class mail.
‘‘(D) An individual or entity who complies with
subparagraph (B)(ii) with respect to such an order
may not be held liable for wrongful withholding of
income from the employee subject to the order.
‘‘(E) The State shall impose a civil fine of
$1,000 on any individual or entity who receives such
an order for each failure to comply with subpara-
graph (B)(ii) with respect to the order.
‘‘(F) The State shall have in effect such proce-
dures as the Secretary may require by regulation for
carrying out this paragraph in cases involving an
employee who has 2 or more employers or child sup-
port obligations.
‘‘(12) If the State transmits to an individual or
entity engaged in commerce only outside the State
a wage withholding order issued by the State with
respect to an employee of the individual or entity,
and the individual or entity refuses to comply with
the order, the State shall send an informational copy
126
of the order to the registry established pursuant to
subsection (a)(20)(A) of any other State in which
the individual or entity is engaged in commerce.
‘‘(13) If an employee requests a hearing to con-
test wage withholding based on claim of a mistake
of fact, the hearing may be held in the State from
which the child support is collected, and, within 45
days after the income source receives the withhold-
ing order, the entity conducting the hearing must
adjudicate the claim. The State in which the hearing
is held shall provide appropriate services in cases en-
forced under the State plan to ensure that the inter-
ests of the individual to whom the withheld income
is to be paid are adequately represented.’’.
(2) 
CONFORMING
AMENDMENT.—Section
466(b)(6)(A)(i) (42 U.S.C. 666(b)(6)(A)(i)) is
amended by striking ‘‘(which may include’’ and all
that follows through ‘‘paragraph (5))’’ and inserting
‘‘and pay such amount to the State registry estab-
lished under subsection (a)(12)’’.
(c) PRIORITIES
IN APPLICATION
OF WITHHELD
WAGES.—Section 466(b) (42 U.S.C. 666(b)), as amended
by subsection (b)(1) of this section, is amended by insert-
ing after paragraph (13) the following:
127
‘‘(14) Procedures under which the amounts
withheld pursuant to a child support or wage with-
holding order are to be applied in the following
order:
‘‘(A) To payments of support due during
the month of withholding.
‘‘(B) To payments of premiums for health
care insurance coverage for dependent children.
‘‘(C) To payments of support due before
the month of withholding or collection, and of
unreimbursed health-care expenses.’’.
(d) ACCESS
TO VARIOUS DATA BASES.—Section
466(a) (42 U.S.C. 666(a)), as amended by subtitle C of
this title and by subsection (a) of this section, is amended
by inserting after paragraph (20) the following:
‘‘(21) Procedures under which the State child
support enforcement agency shall have automated
on-line 
or 
batch 
access 
(or, 
if 
necessary,
nonautomated access) to information regarding resi-
dential addresses, employers and employer address-
es, income and assets, and medical insurance bene-
fits with respect to absent parents that is available
through any data base maintained by—
‘‘(A) any agency of the State or any politi-
cal subdivision thereof, that contains informa-
128
tion on residential addresses, or on employers
and employer addresses;
‘‘(B) any publicly regulated utility com-
pany located in the State; and
‘‘(C) any credit reporting agency.’’.
(e) EXPANDED INTERACTION WITH THE NATIONAL
PARENT
LOCATOR
NETWORK.—Section 454(16) (42
U.S.C. 654(16)) is amended—
(1) by striking ‘‘and (E)’’ and inserting ‘‘(E)’’;
and
(2) by striking ‘‘enforcement;’’ and inserting
‘‘enforcement, and (F) to provide access to the na-
tional network developed pursuant to section
453(g);’’.
(f) STATE PLAN REQUIREMENT.—Section 454 (42
U.S.C. 654), as amended by section 212(a) of this Act,
is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(24);
(2) by striking the period at the end of para-
graph (25) and inserting ‘‘; and’’; and
(3) by inserting after paragraph (25) the fol-
lowing:
‘‘(26) will have in effect safeguards applicable
to all sensitive and confidential information handled
129
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 against the release of in-
formation on the whereabouts of a party to an-
other party against whom a protective order
with respect to the party has been entered.’’.
SEC. 242. UNIFORM TERMS IN ORDERS.
Section 452(a) (42 U.S.C. 652(a)) is amended—
(1) in paragraph (9), by striking ‘‘and’’ after
the semicolon;
(2) in paragraph (10), by striking the period at
the end of the 2nd sentence and inserting ‘‘; and’’;
and
(3) by adding at the end the following:
‘‘(11) not later than 12 months after the date
of the enactment of this paragraph, develop a uni-
form abstract of a child support order, for use by
the child support order registry established pursuant
to section 466(a)(20)(A), in which may be re-
corded—
130
‘‘(A) the date support payments are to
begin under the order;
‘‘(B) the circumstances upon which sup-
port payments are to end under the order;
‘‘(C) the amount of child support payable
pursuant to the order expressed as a sum cer-
tain to be paid on a monthly basis, arrearages
expressed as a sum certain as of a certain date,
and any payback schedule for the arrearages;
‘‘(D) whether the order awards support in
a lump sum (nonallocated) or per child;
‘‘(E) if the award is in a lump sum, the
event causing a change in the support award
and the amount of any change;
‘‘(F) other expenses covered by the order;
‘‘(G) the names of the parents subject to
the order;
‘‘(H) the social security account numbers
of the parents;
‘‘(I) the name, date of birth, and social se-
curity account number (if any) of each child
covered by the order;
‘‘(J) the identification (FIPS code, name,
and address) of the court or administrative
agency that issued the order;
131
‘‘(K) any information on health care sup-
port required by the order;
‘‘(L) the party to contact if additional in-
formation is obtained; and
‘‘(M) such other information as the Sec-
retary deems appropriate.’’.
SEC. 243. STATES REQUIRED TO ENACT THE UNIFORM
INTERSTATE FAMILY SUPPORT ACT.
(a) IN GENERAL.—Section 466 (42 U.S.C. 666) is
amended by adding at the end the following:
‘‘(f) In order to satisfy section 454(20)(A), each
State must have in effect laws which adopt the officially
approved version of the Uniform Interstate Family Sup-
port Act adopted by the National Conference of Commis-
sioners on Uniform State Laws in August 1992.’’.
(b) APPLICABILITY.—
(1) IN GENERAL.—Except as provided in para-
graph (2) of this subsection, the amendment made
by subsection (a) shall apply to calendar quarters
beginning on or after October 1, 1995, without re-
gard to whether regulations to implement such
amendments are promulgated by such date.
(2) DELAY PERMITTED IF STATE LEGISLATION
REQUIRED.—In the case of a State plan approved
under part D of title IV of the Social Security Act
132
which the Secretary of Health and Human Services
determines requires State legislation (other than leg-
islation appropriating funds) in order for the plan to
meet the additional requirement imposed by the
amendment made by subsection (a) of this section,
the State plan shall not be regarded as failing to
comply with such additional requirement solely on
the basis of the failure of the plan to meet such ad-
ditional requirement before the 1st day of the 1st
calendar quarter beginning after the close of the 1st
regular session of the State legislature that begins
after the date of the enactment of this Act. For pur-
poses of the previous sentence, in the case of a State
that has a 2-year legislative session, each year of
such session shall be deemed to be a separate regu-
lar session of the State legislature.
SEC. 244. EXPEDITED PROCESSES AND ADMINISTRATIVE
PROCEDURES.
(a) 
MONITORING
OF
COMPLIANCE.—Section
452(a)(4) (42 U.S.C. 652(a)(4)) is amended by inserting
‘‘and to determine whether the expedited processes re-
quired under section 466(a)(2)(A) are in effect’’ before ‘‘,
and, not less’’.
(b) NONCOMPLIANT STATES WITH JUDICIAL SYS-
TEM FOR PROCESSING CHILD SUPPORT CASES REQUIRED
133
TO CONVERT
TO ADMINISTRATIVE SYSTEM.—Section
466(a)(2) (42 U.S.C. 666(a)(2)) is amended by inserting
after the 1st sentence the following: ‘‘If the Secretary
finds that the processes for obtaining and modifying child
support orders under the State judicial system has not
met the standards established in such regulations, such
procedures shall provide for the use of State administra-
tive processes for obtaining and modifying such orders.’’.
SEC. 245. DUE PROCESS.
Section 454 (42 U.S.C. 654), as amended by sections
212(a) and 241(f) of this Act, is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(25);
(2) by striking the period at the end of para-
graph (26) and inserting ‘‘; and’’; and
(3) by inserting after paragraph (26) the fol-
lowing:
‘‘(27) provide 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
134
‘‘(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 timely access to a fair hearing or
other formal complaint procedure, meeting
standards established by the Secretary, that en-
sures prompt consideration and resolution of
complaints (but the resort to the procedure
shall not stay the enforcement of any support
order);’’.
SEC. 246. OUTREACH AND ACCESSIBILITY.
(a) UNIFORM APPLICATION
FOR CHILD SUPPORT
SERVICES.—
(1) REQUIREMENT THAT STATES USE FEDERAL
APPLICATION FORM.—Section 454(6)(A) (42 U.S.C.
654(6)(A)) is amended by inserting ‘‘(which shall be
made on the service application form developed
under section 452(a)(7))’’ after ‘‘State’’.
(2) DUTY TO DEVELOP APPLICATION FORM.—
Section 452(a)(7) (42 U.S.C. 652(a)(7)), as amend-
ed by section 211(b) of this Act, is amended by in-
serting ‘‘, and develop a form to be used to apply
135
for services established under State plans under this
part’’ before the semicolon.
(b) OUTREACH.—
(1) STATE PLAN REQUIREMENT.—Section 454
(42 U.S.C. 654), as amended by sections 212(a),
241(f), and 245 of this Act, is amended—
(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 inserting after paragraph (27) the
following:
‘‘(28) provide for the establishment and conduct
of an ongoing program of outreach to persons eligi-
ble for services under the plan, in accordance with
regulations issued under section 452(a)(11).’’.
(2) REGULATIONS.—Section 452(a) (42 U.S.C.
652(a)), as amended by section 242 of this Act, is
amended—
(A) in paragraph (10), by striking ‘‘and’’
after the semicolon;
(B) in paragraph (11), by striking the pe-
riod and inserting ‘‘; and’’; and
(C) by adding at the end the following:
136
‘‘(12) issue such regulations as are necessary to
ensure that State agencies—
‘‘(A) develop and implement a plan for
serving underserved populations;
‘‘(B) use appropriate personnel and print-
ed material for use by persons who do not
speak English or whose hearing is impaired;
and
‘‘(C) work in cooperation with other Fed-
eral, State, and local government agencies and
private nonprofit organizations which serve low-
income families to publicize the availability of
such services and coordinate the delivery of
such services.’’.
SEC. 247. COST-OF-LIVING ADJUSTMENT OF CHILD SUP-
PORT AWARDS.
Part D of title IV (42 U.S.C. 651–669) is amended
by inserting after section 467 the following:
‘‘SEC. 467A. COST-OF-LIVING ADJUSTMENT OF CHILD SUP-
PORT AWARDS.
‘‘(a) IN GENERAL.—Each State, as a condition for
having its State plan approved under this part, shall have
in effect such laws and procedures as are necessary to en-
sure that each child support order issued or modified in
the State after the effective date of this section provides
137
that amount of child support payable under the order dur-
ing the 12-month period that begins on each anniversary
of the date the order was issued or most recently so modi-
fied shall be an amount equal to—
‘‘(1) the amount of the award specified in the
order; multiplied by
‘‘(2) the percentage (if any) by which—
‘‘(A) the average of the Consumer Price
Index (as defined in section 1(f)(5) of the Inter-
nal Revenue Code of 1986) for the most recent
12-month period for which such information is
available; exceeds
‘‘(B) the average of the Consumer Price
Index (as so defined) for the 12-month period
that ends on the date the order was issued or
most recently so modified.
‘‘(b) NOTICE REQUIREMENTS.—The laws and proce-
dures described in subsection (a) shall include a require-
ment that notice of the cost-of-living adjustment of a child
support award be provided to—
‘‘(1) the individual obligated to pay the child
support, and if wages are to be withheld to pay such
support, to each employer of the individual; and
‘‘(2) the individual to whom the child support
is owed.
138
‘‘(c) RULE
OF INTERPRETATION.—Subsection (a)
shall not be construed to affect other grounds for modify-
ing a child support award.’’.
SEC. 248. SIMPLIFIED PROCESS FOR REVIEW AND ADJUST-
MENT OF CERTAIN CHILD SUPPORT ORDERS.
(a) IN GENERAL.—Section 466(a)(10) (42 U.S.C.
666(a)(10)) is amended by adding at the end the follow-
ing:
‘‘(D)(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 appropriate, adjust
the order in accordance with the guidelines es-
tablished under section 467(a) if the amount of
the child support award under the order differs
from the amount that would be awarded in ac-
cordance with such guidelines by more than the
total of the adjustments required to be made in
the amount of the award pursuant to section
467A during the 3 year period ending on the
date of the request; and
‘‘(II) upon request of either parent subject
to a child support order, the State shall review
and, as appropriate, adjust the order in accord-
ance with the guidelines established under sec-
139
tion 467(a) based on a significant 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 provided for under clause (i) at the time
the order is issued and in the annual information ex-
change form provided under subparagraph (E).
‘‘(E) Procedures under which each child sup-
port 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 finan-
cial condition annually on a form which shall be es-
tablished by the Secretary and provided by the
State.’’.
(b) CONFORMING AMENDMENT.—Section 466(a) (42
U.S.C. 666(a)) is amended by striking paragraph (10).
SEC. 249. PREVENTION OF CONFLICTS OF INTEREST.
Section 466(a)(10) (42 U.S.C. 666(a)(10)), as
amended by section 248 of this Act, is amended by adding
at the end the following:
‘‘(F) Procedures to ensure that the State does
not provide to any noncustodial parent of a child
representation relating to the review or adjustment
of an order for the payment of child support with re-
151
(II) a child support order has been
obtained and is being enforced by the
State child support order registry estab-
lished pursuant to section 466(a)(12) of
the Social Security Act; or
(ii) a parent of the child has good cause
for not seeking or enforcing a support order;
(B) the assured child support benefit shall be
paid promptly to the custodial parent at least once
a month and shall be—
(i) an amount determined by the State
which is—
(I) not less than $1,500 per year for
the first child, $1,000 per year for the sec-
ond child, and $500 per year for the third
and each subsequent child, and
(II) not more than $3,000 per year
for the first child and $1,000 per year for
the second and each subsequent child;
(ii) indexed and adjusted for inflation; and
(iii) in the case of a family of children with
multiple noncustodial parents, calculated in the
same manner as if all such children were full
siblings;
152
(C) when child support is collected for a child
in a month in which the child has received a child
support assurance benefit, the amount due to the
child from the child support collection shall be re-
duced by the child support assurance already paid to
the child for the month, and if the child is receiving
child support assurance benefits in common with sib-
lings or half-siblings, the amount of the child sup-
port assurance benefits attributable to the child shall
be not more than the child’s pro rata share of the
total benefits.
(D) for purposes of determining the need of a
child or relative and the level of assistance under
part A of title IV of the Social Security Act, 1⁄2 of
the amount received as a child support assurance
benefit shall be disregarded from income until the
total amount of child support and aid to families
with dependent children benefit received under part
A of title IV of the Social Security Act equals the
Federal poverty level for a family of comparable size;
(E) in determining need and the amount of as-
sistance under part A of title IV of the Social Secu-
rity Act, the needs of any family member not receiv-
ing an assured child support benefit shall be deter-
209
(b) ANNUAL WAIVER STATUS REPORTS.—
(1) IN
GENERAL.—Section 1115 (42 U.S.C.
1315), as amended by subsection (a) of this section,
is amended by adding at the end the following:
‘‘(f) On January 1 of each fiscal year, the Secretary
shall submit to the Congress a report that identifies each
waiver approved under this section, describes the status
of each such waiver, and summarizes the evaluation find-
ings relating to activities under waivers issued under this
section that became available during the immediately pre-
ceding fiscal year.’’.
(2) APPLICABILITY.—The amendment made by
paragraph (1) shall apply to fiscal year 1997 and
each succeeding fiscal year.
(c) NOTICE AND COMMENT PERIOD.—Section 1115
(42 U.S.C. 1315), as amended by subsections (a) and (b)
of this section, is amended by adding at the end the follow-
ing:
‘‘(g) The Secretary may not issue a waiver under this
section before—
‘‘(1) the Secretary has published in the Federal
Register a notice of the proposed waiver; and
‘‘(2) 30 days have elapsed since the beginning
of the comment period with respect to the proposed
waiver.’’.
216
and subsections (c)(1), (d), and (e) of the section, is
amended—
(1) by striking ‘‘and’’ at the end of clause (xi);
and
(2) by adding at the end the following:
‘‘(xiii) shall disregard any living allowance,
child care allowance, stipend, or educational
award paid under section 140 of the National
and Community Service Act of 1990 to a family
member participating in a national service pro-
gram carried out with assistance from the Cor-
poration for National and Community Serv-
ice;’’.
(g) 
‘‘FILL-THE-GAP’’ 
DISREGARDS.—Section
402(a)(8)(A) (42 U.S.C. 602(a)(8)(A)), as amended by
section 312(b) of this Act and subsections (c)(1), (d), (e),
and (f) of this section, is amended—
(1) by striking ‘‘and’’ at the end of clause (xii);
and
(2) by adding at the end the following:
‘‘(xiv) after applying paragraph (28) and
the other clauses of this subparagraph, may dis-
regard such categories of income as are pro-
vided for in the State plan in an amount not
exceeding the difference between the State’s