142
SEC. 21007. STUDY.
(a) AVAILABILITY
OF CREDIT
FOR SMALL BUSI-
NESSES
WHICH
ARE
LARGER
THAN
MICROENTER-
PRISES.—The Financial Institutions Examination Council
shall conduct a study before the end of the 2-year period
beginning on the date of the enactment of this subtitle,
based on the agency’s experience in administering the
microenterprise loan provisions of this subtitle, and the
amendments made by this subtitle, on the best means to
make credit available for small businesses which—
(1) do not qualify for microenterprise loans or
need credit in larger amounts than is available
through microenterprise loans; and
(2) need credit in smaller amounts than is gen-
erally available from financial institutions or the
Small Business Administration.
(b) RECOMMENDATIONS AND REPORT.—The Finan-
cial Institutions Examination Council shall submit a re-
port to the Congress before the end of the 2-year period
referred to in subsection (a) containing the findings and
conclusions of the agency in connection with the study
conducted pursuant to subsection (a) and such rec-
ommendations for legislative and administrative action as
the agency may determine to be appropriate.
143
Subtitle B—Commission on the Ad-
vancement of Women in the
Science and Engineering Work
Forces
SEC. 22001. FINDINGS.
The Congress finds that—
(1) despite a consistently high presence of
women in the professional and total work forces of
the United States, women continue to be underrep-
resented in the science and engineering work forces;
(2) women scientists and engineers have higher
rates of unemployment and underemployment than
their male counterparts, although the number of
women receiving degrees in scientific and engineer-
ing disciplines has increased since 1981;
(3) artificial barriers exist in the recruitment,
retention, and advancement of women in the science
and engineering work forces;
(4) academia, industry, and government are in-
creasingly aware of the necessity of and the advan-
tages derived from diverse science and engineering
work forces;
(5) initiatives of the White House Task Force
on Women, Minorities, and the Handicapped in
Science and Technology and of the Federal Coordi-
144
nating Council on Science, Engineering, and Tech-
nology have been instrumental in raising public
awareness of—
(A) the underrepresentation of women in
the science and engineering work forces; and
(B) the desirability of eliminating artificial
barriers to the recruitment, retention, and ad-
vancement of women in such work forces; and
(6) the establishment of a commission to exam-
ine issues raised by these initiatives would help to—
(A) focus greater attention on the impor-
tance of eliminating artificial barriers to the re-
cruitment, retention, and advancement of
women in the science and engineering work
forces and in all employment sectors of the
United States;
(B) promote work force diversity; and
(C) encourage the replication of successful
recruitment and retention programs by univer-
sities, corporations, and Federal agencies hav-
ing difficulties in employing women scientists
and engineers.
SEC. 22002. ESTABLISHMENT.
There is established a commission to be known as the
‘‘Commission on the Advancement of Women in the
145
Science and Engineering Work Forces’’ (hereinafter in
this subtitle referred to as the ‘‘Commission’’).
SEC. 22003. DUTY OF COMMISSION.
The Commission shall conduct a study to—
(1) identify the number of women in the United
States in the science and engineering work forces,
and the specific types of occupations in such
workforces in which women scientists and engineers
are underrepresented;
(2) examine the preparedness of women to—
(A) pursue careers in the science and engi-
neering work forces; and
(B) advance to positions of greater respon-
sibility within academia, industry, and govern-
ment;
(3) describe the practices and policies of em-
ployers and labor unions relating to the recruitment,
retention, and advancement of women scientists and
engineers;
(4) identify the opportunities for, and artificial
barriers to, the recruitment, retention, and advance-
ment of women scientists and engineers in academia,
industry, and government;
(5) describe the employment situations in which
the recruitment, retention, and advancement of
146
women scientists and engineers are comparable to
their male counterparts, and identify those situa-
tions in which such comparability does not exist;
(6) compile a synthesis of available research on
practices, policies, and programs that have success-
fully led to the recruitment, retention, and advance-
ment of women in the science and engineering work
forces, including training programs, rotational as-
signments, developmental programs, reward pro-
grams, employee benefit structures, and family leave
policies;
(7) examine such other issues and information
relating to the advancement of women in the science
and engineering work forces as determined by the
Commission to be appropriate; and
(8) issue recommendations that government (in-
cluding Congress and appropriate Federal agencies),
academia, and private industry can follow to assist
in the recruitment, retention, and advancement of
women in science and engineering.
SEC. 22004. MEMBERSHIP.
(a) NUMBER AND APPOINTMENT.—The Commission
shall be composed of 18 members as follows:
(1) 5 members appointed by the President.
147
(2) 3 members appointed jointly by the Speaker
of the House of Representatives and the majority
leader of the Senate.
(3) 1 member appointed by the majority leader
of the House of Representatives.
(4) 1 member appointed by the minority leader
of the House of Representatives.
(5) 1 member appointed by the majority leader
of the Senate.
(6) 1 member appointed by the minority leader
of the Senate.
(7) 2 Members of the House of Representatives,
appointed jointly by the majority leader and the mi-
nority leader of the House of Representatives.
(8) 2 Senators appointed jointly by the majority
leader and the minority leader of the Senate.
(9) The Director of the Office of Science and
Technology Policy.
(b) ADDITIONAL QUALIFICATIONS.—Initial appoint-
ments shall be made under subsection (a) not later than
180 days after the date of the enactment of this subtitle.
In making each appointment under subsection (a), the ap-
pointing authority shall consider (among other factors)
whether the individual—
148
(1) is a member of an organization representing
women and minorities;
(2) holds executive management or senior deci-
sion-making positions in any business entity; and
(3) possesses academic expertise or other recog-
nized abilities relating to employment and employ-
ment discrimination issues.
(c) POLITICAL AFFILIATION.—Not more than 1⁄2 of
the members may be of the same political party.
(d) CONTINUATION OF MEMBERSHIP.—If a member
was appointed to the Commission because the member was
an officer or employee of any government and later ceases
to be such an officer or employee, that member may con-
tinue as a member of the Commission for not longer than
the 60-day period beginning on the date the member
ceases to be such an officer or employee.
(e) TERMS.—
(1) IN GENERAL.—Each member shall be ap-
pointed for the life of the Commission.
(2) VACANCIES.—A vacancy in the Commission
shall be filled in the manner in which the original
appointment was made.
(f) BASIC PAY.—
(1) RATES
OF
PAY.—Except as provided in
paragraph (2), each member of the Commission
149
shall receive compensation at the daily equivalent of
the maximum rate of pay payable under section
5376 of title 5, United States Code, for each day the
member is engaged in the performance of duties for
the Commission, including attendance at meetings
and conferences of the Commission, and travel to
conduct the duties of the Commission.
(2) PROHIBITION OF COMPENSATION OF FED-
ERAL
EMPLOYEES.—Members of the Commission
who are full-time officers or employees of the United
States or Members of Congress may not receive ad-
ditional pay, allowances, or benefits by reason of
their service on the Commission.
(g) TRAVEL EXPENSES.—Each member shall receive
travel expenses, including per diem in lieu of subsistence,
in accordance with sections 5702 and 5703 of title 5,
United States Code.
(h) QUORUM.—A majority of the members of the
Commission shall constitute a quorum for the transaction
of business.
(i) CHAIRPERSON.—The Director of the Office of
Science and Technology Policy shall serve as the Chair-
person of the Commission.
(j) MEETINGS.—
150
(1) MEETINGS PRIOR TO COMPLETION OF RE-
PORT.—The Commission shall meet not fewer than
5 times in connection with and pending the comple-
tion of the reports described in subsections (a) and
(b) of section 22007. The Commission shall hold ad-
ditional meetings for such purpose if the Chair-
person or a majority of the members of the Commis-
sion requests the additional meetings in writing.
(2) MEETINGS
AFTER
COMPLETION
OF
RE-
PORT.—The Commission shall meet at least once,
but not more than twice after the completion of the
report described in section 22007(b), in connection
with and pending completion of the report required
by section 22007(c).
(k) EMPLOYMENT STATUS.—A member of the Com-
mission, who is not otherwise an officer or employee of
the Federal Government, shall not be deemed to be an
employee of the Federal Government except for the pur-
poses of—
(1) the tort claims provisions of chapter 171 of
title 28, United States Code; and
(2) subchapter I of chapter 81 of title 5, United
States Code, relating to compensation for work inju-
ries.
151
SEC. 22005. DIRECTOR AND STAFF OF COMMISSION; EX-
PERTS AND CONSULTANTS.
(a) DIRECTOR.—The Commission shall have a Direc-
tor who shall be appointed by the Chairperson. The Direc-
tor shall be paid at a rate not to exceed the maximum
annual rate of basic pay payable under section 5376 of
title 5, United States Code.
(b) STAFF.—Subject to rules prescribed by the Com-
mission, the Chairperson may appoint and fix the pay of
additional personnel as the Chairperson considers appro-
priate.
(c) APPLICABILITY
OF CERTAIN CIVIL SERVICE
LAWS.—The Director and staff of the Commission may
be appointed without regard to the provisions of title 5,
United States Code, governing appointments in the com-
petitive service, and may be paid without regard to the
provisions of chapter 51 and subchapter III of chapter 53
of that title relating to classification and General Schedule
pay rates, except that an individual so appointed may not
receive pay in excess of the maximum annual rate of basic
pay payable under section 5376 of title 5, United States
Code.
(d) EXPERTS AND CONSULTANTS.—The Commission
may procure temporary and intermittent services under
section 3109(b) of title 5, United States Code, at rates
for individuals not to exceed the maximum annual rate
152
of basic pay payable under section 5376 of title 5, United
States Code.
(e) STAFF OF FEDERAL AGENCIES.—Upon request
of the Commission, the head of any Federal department
or agency may detail, on a reimbursable basis, any of the
personnel of that department or agency to the Commission
to assist it in carrying out its duties under this subtitle.
SEC. 22006. POWERS OF COMMISSION.
(a) HEARINGS
AND SESSIONS.—The Commission
may, for the purpose of carrying out this subtitle, hold
hearings, sit and act at times and places, take testimony,
and receive evidence as the Commission considers appro-
priate. The Commission may administer oaths or affirma-
tions to witnesses appearing before it.
(b) POWERS OF MEMBERS AND AGENTS.—Any mem-
ber or agent of the Commission may, if authorized by the
Commission, take any action which the Commission is au-
thorized to take by this section.
(c) OBTAINING OFFICIAL DATA.—The Commission
may secure directly from any department or agency of the
United States information necessary to enable it to carry
out this subtitle. Upon request of the Chairperson of the
Commission, the head of that department or agency shall
furnish that information to the Commission.
153
(d) GIFTS, BEQUESTS, AND DEVISES.—The Commis-
sion may accept, use, and dispose of gifts, bequests, or
devises of services or property, both real and personal, for
the purpose of aiding or facilitating the work of the Com-
mission. Gifts, bequests, or devises of money and proceeds
from sales of other property received as gifts, bequests,
or devises shall be deposited in the Treasury and shall be
available for disbursement upon order of the Commission.
(e) MAILS.—The Commission may use the United
States mails in the same manner and under the same con-
ditions as other departments and agencies of the United
States.
(f) ADMINISTRATIVE SUPPORT SERVICES.—Upon the
request of the Commission, the Administrator of General
Services shall provide to the Commission, on a reimburs-
able basis, the administrative support services necessary
for the Commission to carry out its responsibilities under
this subtitle.
(g) CONTRACT AUTHORITY.—To the extent provided
in advance in appropriations Acts, the Commission may
contract with and compensate government and private
agencies or persons for the purpose of conducting research
or surveys necessary to enable the Commission to carry
out its duties under this subtitle.
154
SEC. 22007. REPORTS.
(a) STATUS REPORT.—Not later than 1 year after
the date on which the initial appointments under section
22004(a) are completed, the Commission shall submit to
the President and the Congress a written report describing
the current activities and findings of the Commission and
the direction of the Commission.
(b) RECOMMENDATION REPORT.—Not later than 18
months after the date on which the initial appointments
under section 22004(a) are completed, the Commission
shall submit to the President and the Congress a written
report containing—
(1) the findings and conclusions of the Commis-
sion resulting from the study conducted under sec-
tion 22003; and
(2) recommendations, including specific pro-
posed legislation and administrative action, based on
the findings and conclusions referred to in para-
graph (1).
(c) FOLLOW-UP REPORT.—After submission of the
report required by subsection (b) and before the termi-
nation of the Commission, the Commission shall submit
to the President and to the Congress a written report—
(1) identifying which of the recommendations
included in such report have been implemented; and
155
(2) containing any additional information the
Commission considers to be appropriate.
SEC. 22008. CONSTRUCTION; USE OF INFORMATION OB-
TAINED.
(a) IN GENERAL.—Nothing in this subtitle shall be
construed to require any non-Federal entity (such as a
business, college, or university, foundation, or research or-
ganization) to provide information to the Commission con-
cerning such entity’s personnel policies, including, but not
limited to, salaries and benefits, promotion criteria, and
affirmative action plans.
(b) USE OF INFORMATION OBTAINED.—No informa-
tion obtained from any entity by the Commission may be
used in connection with any employment related litigation.
SEC. 22009. TERMINATION.
The Commission shall terminate 1 year after submit-
ting the report required by section 22007(b).
SEC. 22010. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated for fiscal
years 1997, 1998, and 1999 such sums as may be nec-
essary to carry out this subtitle.
156
Subtitle C—Equal Surety Bond
Opportunity
SEC. 23001. EQUAL SURETY BOND OPPORTUNITY REQUIRE-
MENTS.
(a) ACTIVITIES CONSTITUTING DISCRIMINATION.—It
shall be unlawful for any surety to discriminate against
any applicant, with respect to any aspect of a surety bond
transaction—
(1) on the basis of race, color, religion, national
origin, sex, marital status, sexual orientation, dis-
ability, or age (if the applicant has the capacity to
contract);
(2) because the applicant has in good faith ex-
ercised any right under this subtitle;
(3) because the applicant previously obtained a
bond through an individual or personal surety; or
(4) because the applicant previously obtained a
bond through—
(A) any bonding assistance program ex-
pressly authorized by law;
(B) any bonding assistance program ad-
ministered by a nonprofit organization for its
members or an economically disadvantaged
class of persons; or
157
(C) any special purpose bonding program
offered by a profit-making organization to meet
special needs.
(b) ACTIVITIES NOT CONSTITUTING DISCRIMINA-
TION.—It shall not constitute discrimination for purposes
of this subtitle for a surety—
(1) to make an inquiry of marital status if such
inquiry is for the purpose of ascertaining the sure-
ty’s rights and remedies applicable to the granting
of a bond and not to discriminate in a determination
of bondability;
(2) to make an inquiry of the applicant’s age if
such inquiry is for the purpose of determining the
amount and probable continuance of bondability; or
(3) to make an inquiry as to where the appli-
cant has previously obtained a bond, in order to de-
termine bonding history, or other pertinent element
of bondability, except that an applicant may not be
assigned a negative factor or value because the ap-
plicant previously obtained a bond through—
(A) an individual or personal surety;
(B) a bonding assistance program ex-
pressly authorized by law;
158
(C) any bonding program administered by
a nonprofit organization for its members or an
economically disadvantaged class of persons; or
(D) any special purpose bonding program
offered by a profit-making organization to meet
special needs.
(c) ADDITIONAL ACTIVITIES NOT CONSTITUTING
DISCRIMINATION.—It is not a violation of this subtitle for
a surety to refuse to issue a bond pursuant to—
(1) any bonding assistance program authorized
by law for an economically disadvantaged class of
persons;
(2) any bonding assistance program adminis-
tered by a nonprofit organization for its members or
an economically disadvantaged class of persons; or
(3) any special purpose bonding program of-
fered by a profit-making organization to meet special
needs;
if such refusal is required by or made pursuant to such
program.
(d) REASONS FOR ADVERSE ACTION; PROCEDURE
APPLICABLE; DEFINITION.—
(1) NOTICE REQUIRED.—
(A) IN GENERAL.—Except as provided in
subparagraph (B), any surety approved under
159
section 9304 of title 31, United States Code,
shall notify an applicant of the surety’s action
on a completed application before the end of the
10-day period beginning on the date the appli-
cation is filed with the surety.
(B) EXTENSION.—The 10-day period re-
ferred to in subparagraph (A) may be extended
an additional 10 days if the surety has not is-
sued a bond to the applicant during the 1-year
period ending on the date the application is
filed with the surety.
(2) STATEMENT OF REASONS.—
(A) IN GENERAL.—Each applicant against
whom adverse action is taken shall be entitled
to a statement of reasons for such action from
the surety.
(B) 
ACCEPTABLE
FORMS
OF
STATE-
MENT.—A surety satisfies the requirement es-
tablished under subparagraph (A) by—
(i) providing a statement of reasons in
writing as a matter of course to applicants
against whom adverse action is taken; or
(ii) giving written notification of ad-
verse action which discloses—
160
(I) the applicant’s right to a
statement of reasons within 30 days
after receipt by the surety of a re-
quest made within 60 days after such
notification; and
(II) the identity of the person or
office from which such statement may
be obtained.
(C) ORAL STATEMENT PERMITTED.—Such
statement may be given orally if the written no-
tification advises the applicant of the appli-
cant’s right to have the statement of reasons
confirmed in writing on written request.
(3) SPECIFICITY OF REASONS.—A statement of
reasons meets the requirements of this subtitle only
if it contains specific reasons for the adverse action
taken.
(4) APPLICABILITY IN CASE OF 3D PARTY AP-
PLICATIONS.—In the case of a request to a surety
by a third party to issue a bond directly or indirectly
to an applicant, the notification and statement of
reasons required by this section may be made di-
rectly by such surety, or indirectly through the third
party, if the identity of the surety is disclosed to the
applicant.
161
(5) APPLICABILITY
IN
CASE
OF
SURETIES
WHICH ACCEPT FEW APPLICATIONS.—The require-
ments of paragraph (2), (3), or (4) may be satisfied
by oral statements or notifications in the case of any
surety who did not act on more than 100 applica-
tions during the calendar year in which the adverse
action is taken.
(e) ADVERSE ACTION DEFINED.—For purposes of
this subtitle, the term ‘‘adverse action’’—
(1) means a denial of a bond, a change in the
terms of an existing bonding arrangement, or a re-
fusal to issue a bond in the amount or on substan-
tially the terms requested; and
(2) does not include any refusal to issue an ad-
ditional bond under an existing bonding arrange-
ment where the applicant is in default, or where
such additional bond would exceed a previously es-
tablished bonding limit.
SEC. 23002. CIVIL LIABILITY.
(a) DAMAGES.—Any surety who fails to comply with
section 23001(a) shall be liable to the aggrieved applicant
for—
(1) any actual damage sustained by such appli-
cant (individually or as a member of a class); and
162
(2) in the case of any successful action under
this section, the costs of the action, together with
reasonable attorney’s fees as determined by the
court.
(b) EQUITABLE RELIEF.—Upon application by an
aggrieved applicant, a court of competent jurisdiction may
enjoin a surety from violating the requirements of this
subtitle or grant such other equitable relief as the court
determines to be appropriate to enforce such require-
ments.
(c) JURISDICTION.—Any action under this section
may be brought in any United States district court, or
in any other court of competent jurisdiction, within 1 year
after the date of the occurrence of the violation involved.
SEC. 23003. ADMINISTRATIVE ENFORCEMENT.
(a) IN GENERAL.—A company may not be approved
as a surety by the Secretary of the Treasury under section
9304 of title 31, United States Code, or provide any surety
bond pursuant to such section unless such company main-
tains full compliance with the requirements of this sub-
title.
(b) REQUIREMENTS RELATING TO ENFORCEABILITY
OF ACT.—
163
(1) SIGNED STATEMENT OF COMPLIANCE WITH
APPLICATION.—Section 9305(a) of title 31, United
States Code, is amended—
(A) by striking ‘‘and’’ at the end of para-
graph (1);
(B) by striking the period at the end of
paragraph (2) and inserting ‘‘; and’’; and
(C) by adding at the end the following new
paragraph:
‘‘(3) a statement of compliance with the Eco-
nomic Equity Act of 1996 which is signed under
penalty of perjury by the president and the secretary
of the corporation.’’.
(2) COMPLIANCE
AS
A
CONDITION
FOR
AP-
PROVAL OF APPLICATION.—Section 9305(b) of title
31, United States Code, is amended—
(A) by striking ‘‘and’’ at the end of para-
graph (2);
(B) by striking the period at the end of
paragraph (3) and inserting ‘‘; and’’; and
(C) by adding at the end the following new
paragraph:
‘‘(4) the corporation is in full compliance with
the Economic Equity Act of 1996.’’.
164
(3) SIGNED STATEMENT OF COMPLIANCE WITH
QUARTERLY REPORTS.—Section 9305(c) of title 31,
United States Code, is amended by inserting ‘‘and a
statement of compliance with the Economic Equity
Act of 1996’’ before the period.
(4) ENFORCEMENT AUTHORITY OF SECRETARY
OF THE TREASURY.—Section 9305(d) of title 31,
United States Code, is amended—
(A) in paragraph (1), by inserting ‘‘or the
provisions of the Economic Equity Act of
1996’’ before the semicolon;
(B) by striking ‘‘and’’ at the end of para-
graph (2);
(C) by striking the period at the end of
paragraph (3) and inserting ‘‘; and’’; and
(D) by adding at the end the following new
paragraph:
‘‘(4) may, after the end of the 1-year period be-
ginning on the effective date of any revocation under
paragraph (1) of the authority of a surety corpora-
tion for noncompliance with the Economic Equity
Act of 1996, reauthorize such corporation to provide
surety bonds under section 9304.’’.
165
(5) REVOCATION FOR FAILURE TO PAY CER-
TAIN
JUDGMENTS.—Section 9305(e) of title 31,
United States Code, is amended—
(A) by striking ‘‘and’’ at the end of para-
graph (1);
(B) by redesignating paragraph (2) as
paragraph (3); and
(C) by inserting after paragraph (1) the
following new paragraph:
‘‘(2) the corporation does not pay a final judg-
ment or order against the corporation for noncompli-
ance with the Economic Equity Act of 1996 or fails
to comply with any order under section 23002(c) of
such Act; and’’.
(c) TECHNICAL AND CONFORMING AMENDMENT.—
Section 9304(a)(3) of title 31, United States Code, is
amended by inserting ‘‘and section 23003(a) of the Eco-
nomic Equity Act of 1996’’ before the period.
(d) REGULATIONS.—
(1) IN GENERAL.—The Secretary of the Treas-
ury shall prescribe such regulations as may be nec-
essary to carry out the purposes of this subtitle.
(2) INITIAL REGULATIONS.—The initial regula-
tions prescribed pursuant to paragraph (1) shall
take effect at the earliest practicable date after the
166
date of the enactment of this subtitle and not later
than the end of the 1-year period beginning on such
date of enactment.
SEC. 23004. EFFECTIVE DATE.
Sections 23001(d) and 23003(a) shall take effect on
the earlier of—
(1) the effective date of the initial regulations
prescribed pursuant to section 23003(d); or
(2) the end of the 1-year period beginning on
the date of the enactment of this subtitle.
Subtitle D—Self-Sufficiency
Standard
SEC. 24001. FINDINGS AND PURPOSE.
(a) FINDINGS.—The Congress finds that—
(1) the principle objective of programs under
part A of title II of the Job Training Partnership
Act (29 U.S.C. 1601 et seq.) is to move economically
disadvantaged adults into permanent, unsubsidized
employment that pays a wage that enables such
adults to achieve long-term economic self-sufficiency
for themselves and their dependents;
(2) current measures of success of such pro-
grams do not accurately assess the degree to which
participants achieve long-term economic self-suffi-
ciency;
167
(3) in order to ensure that such programs re-
sult in long-term economic self-sufficiency for par-
ticipants, performance standards must focus both on
the wage and benefits a participant receives relative
to the participant’s family size and needs, and on
the duration and stability of the participant’s em-
ployment; and
(4) the wage and benefits needed to achieve
long-term economic self-sufficiency will vary by fam-
ily size and local market conditions governing prices
of essential goods and services.
(b) PURPOSES.—The purposes of this subtitle are—
(1) to provide for the establishment and use of
local economic self-sufficiency standards tables to ac-
curately measure the effectiveness of adult training
programs carried out under part A of title II of the
Job Training Partnership Act (29 U.S.C. 1601 et
seq.); and
(2) to provide grants to States to develop dem-
onstration and exemplary programs to increase the
number of participants under such programs who
are trained and placed in jobs that yield long-term
economic self-sufficiency using the local economic
self-sufficiency standards tables.
168
SEC. 24002. DEFINITION OF ECONOMIC SELF-SUFFICIENCY.
Section 4 of the Job Training Partnership Act (29
U.S.C. 1503) is amended by adding at the end the follow-
ing new paragraph:
‘‘(41) The term ‘economic self-sufficiency’
means the ability of an individual to meet the follow-
ing basic needs for the individual and such individ-
ual’s family:
‘‘(A) Housing.
‘‘(B) Child care.
‘‘(C) Adult dependent care.
‘‘(D) Food.
‘‘(E) Transportation.
‘‘(F) Health care.
‘‘(G) Work-related expenses.’’.
SEC. 24003. ESTABLISHMENT OF ECONOMIC SELF-SUFFI-
CIENCY STANDARDS FOR ADULT TRAINING
PROGRAMS.
(a) IN GENERAL.—Section 106(b) of such Act (29
U.S.C. 1516(b)) is amended by adding at the end the fol-
lowing new paragraph:
‘‘(9) ECONOMIC SELF-SUFFICIENCY STANDARDS
FOR ADULT PROGRAMS.—
‘‘(A) FORMULA DEVELOPED BY THE SEC-
RETARY.—(i)(I) Not later than 6 months after
the date of the enactment of this paragraph,
169
the Secretary shall develop and publish in the
Federal Register a proposed formula which
measures the minimum amount of wages and
employment benefits that a participant enrolled
in a program under part A of title II should re-
ceive after termination from such program to
ensure the long-term economic self-sufficiency
of such participant.
‘‘(II) The Secretary shall provide for public
review and comment of the proposed formula
described in subclause (I) within the 60-day pe-
riod beginning on the date such formula is pub-
lished in the Federal Register. Not later than
4 months after the end of such 60-day period,
the Secretary shall develop and publish in the
Federal Register a final formula.
‘‘(ii) The Secretary shall base the formula
described in clause (i) on appropriate factors,
which shall include—
‘‘(I) the participant’s family size and
composition, including the number and age
of dependent adults and children;
‘‘(II) 100 percent of the average hous-
ing costs, which shall be based on the fair
market rental in effect for the market area
170
in which the participant resides, as estab-
lished by the Secretary of Housing and
Urban Development pursuant to section
8(c) of the United States Housing Act of
1937;
‘‘(III) 100 percent of the average
child care costs (differentiated by the age
of each child), which may be based on the
actual cost of such care established under
section 402(g)(1)(C)(i)(I) the Social Secu-
rity Act or the applicable local market rate
established under clause (ii) of such sec-
tion;
‘‘(IV) 100 percent of the average
adult dependent care costs, which may be
based on local surveys or the local average
of such costs;
‘‘(V) 100 percent of the average
health care costs, which shall include costs
incurred for full family health care cov-
erage (including premiums, deductibles,
and co-payments), and which may be based
on local surveys or the local average of
such costs;
171
‘‘(VI) 100 percent of the average
transportation costs, which may be based
on local surveys or the local average of
such costs;
‘‘(VII) 100 percent of the food costs,
which shall be equal to 1⁄3 of the official
poverty line (as defined by the Office of
Management and Budget, and revised an-
nually in accordance with section 673(2) of
the Omnibus Budget Reconciliation Act of
1981 (42 U.S.C. 9902(2)); and
‘‘(VIII) 100 percent of the average
work-related costs, which shall include the
cost of uniforms, tools, and other appro-
priate work-related costs.
‘‘(iii) The Secretary shall also designate,
from among the needs identified through the
needs assessment conducted under this Act,
those needs which shall be used by a service de-
livery area to develop the summary needs table
under section 104(b)(14)(B).
‘‘(B) LOCAL ECONOMIC SELF-SUFFICIENCY
STANDARDS TABLES DEVELOPED BY SERVICE
DELIVERY
AREAS.—(i) Not later than 12
months after the date on which the Secretary
173
‘‘(ii) The Governor shall approve each local
economic self-sufficiency standards table only
if—
‘‘(I) such table accounts for the full
range of variations of family size and com-
position described in subclause (I) of sub-
paragraph (A)(ii);
‘‘(II) such table accounts for 100 per-
cent of each of the costs described in sub-
clauses (II) through (VIII) of subpara-
graph (A)(ii);
‘‘(III) the methodology used to deter-
mine such costs accurately represent such
costs; and
‘‘(IV) such table complies with all
other provisions of the formula developed
by the Secretary under subparagraph (A).
‘‘(iii) If the Governor determines that the
table does not meet the requirements of clause
(ii) or is otherwise incomplete or unsatisfactory,
the Governor shall, before the end of the period
referred to in clause (i)—
‘‘(I) notify the service delivery area of
the reasons for the failure to approve the
table;
174
‘‘(II) notify the service delivery area
that the table may be resubmitted during
the period referred to in subclause (III);
and
‘‘(III) permit the service delivery area
to resubmit a corrected or amended table
during the 30-day period beginning on no-
tification under this clause.
‘‘(iv) The Governor shall review and ap-
prove or disapprove any table resubmitted
under clause (iii) beginning before the expira-
tion of the 30-day period beginning upon such
resubmission.
‘‘(D) ANNUAL UPDATES.—Each service de-
livery area shall update the local economic self-
sufficiency standards table developed by such
area on an annual basis and shall submit to the
Governor a description of the updated version
of such table.’’.
(b) CONFORMING AMENDMENT.—Paragraph (3) of
section 106(b) of such Act (29 U.S.C. 1516(b)(3)) is
amended by striking ‘‘The Secretary’’ and inserting ‘‘In
addition to the standards under local economic self-suffi-
ciency standards tables developed pursuant to paragraph
(9), the Secretary’’.
175
SEC. 24004. PROHIBITION OF INCENTIVE GRANTS TO SERV-
ICE DELIVERY AREAS THAT DO NOT HAVE IN
EFFECT AN APPROVED LOCAL ECONOMIC
SELF-SUFFICIENCY STANDARDS TABLE.
(a) IN GENERAL.—Paragraph (7) of section 106(b)
of such Act (29 U.S.C. 1516(b)(7)) is amended—
(1) by striking ‘‘From funds available’’ and in-
serting ‘‘(A) Subject to subparagraph (B), from
funds available’’;
(2) by redesignating clauses (i) and (ii) of sub-
paragraph (D) as subclauses (I) and (II), respec-
tively;
(3) by redesignating subparagraphs (A) through
(E) of such paragraph as clauses (i) through (v), re-
spectively; and
(4) by adding at the end the following new sub-
paragraph:
‘‘(B) A Governor shall not award incentive
grants for programs under part A of title II to serv-
ice delivery areas that do not have in effect a local
economic self-sufficiency standards table approved
under paragraph (9)(C).’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall take effect 2 years after the date of
the enactment of this subtitle.
176
SEC. 24005. INCLUSION OF LOCAL ECONOMIC SELF-SUFFI-
CIENCY STANDARDS TABLE AND RELATED
REPORTS IN JOB TRAINING PLAN.
(a) LOCAL ECONOMIC SELF-SUFFICIENCY STAND-
ARDS TABLE.—Subparagraph (B) of section 104(b)(5) of
such Act (29 U.S.C. 1514(b)(5)(B)) is amended by insert-
ing ‘‘, including the local economic self-sufficiency stand-
ards table developed pursuant to subsection (b)(9) of such
section’’ after ‘‘section 106’’.
(b) ANNUAL REPORTS.—Subsection (b) of section
104 of such Act (29 U.S.C. 1514(b)) is amended—
(1) in paragraph (12), by striking ‘‘; and’’ and
inserting a semi-colon;
(2) in paragraph (13), by striking the period at
the end of such paragraph and inserting ‘‘; and’’;
and
(3) by adding at the end the following new
paragraph:
‘‘(14) procedures for the preparation and sub-
mission of an annual report to the Governor, which
shall include—
‘‘(A) with respect to each participant who
has completed training under a program carried
out under part A of title II in the service deliv-
ery area, information relating to—
177
‘‘(i) the type and amount of services
provided to such participant under the pro-
gram;
‘‘(ii) the subsequent employment of
the participant, where appropriate, includ-
ing the amount of wages and employment
benefits received by the participant under
such employment; and
‘‘(iii) the degree of long-term eco-
nomic self-sufficiency which the participant
has achieved as a result of the training re-
ceived by the participant under the pro-
gram based upon the local economic self-
sufficiency standards table; and
‘‘(B) a summary needs table which—
‘‘(i) ranks and places participants into
at least 4 categories of equal size based
upon the needs designated by the Sec-
retary under section 106(b)(9)(A)(iii);
‘‘(ii) includes a description of the level
of measurements used to place the partici-
pants into such categories; and
‘‘(iii) includes a description of the de-
gree to which participants in each category
achieved long-term economic self-suffi-
178
ciency after termination from a program
under part A of title II.’’.
SEC. 24006. INCLUSION OF LOCAL ECONOMIC SELF-SUFFI-
CIENCY STANDARDS TABLES AND RELATED
REPORTS IN GOVERNOR’S COORDINATION
AND SPECIAL SERVICES PLAN.
Subsection (b) of section 121 of such Act (29 U.S.C.
1531(b)) is amended—
(1) by redesignating paragraphs (6) and (7) as
paragraphs (7) and (8), respectively; and
(2) by inserting after paragraph (5) the follow-
ing new paragraph:
‘‘(6) The plan shall include—
‘‘(A) the local economic self-sufficiency
standards table developed by each service deliv-
ery areas pursuant to section 106(b)(9);
‘‘(B) a compilation of the reports received
by the Governor under section 104(b)(14); and
‘‘(C) a description of goals and objectives
to assist participants enrolled in programs
under part A of title II achieve long-term eco-
nomic self-sufficiency.’’.
179
SEC. 24007. DEMONSTRATION PROGRAMS TO IMPLEMENT
LOCAL 
ECONOMIC 
SELF-SUFFICIENCY
STANDARDS TABLES.
(a) IN GENERAL.—Part D of title IV of such Act (29
U.S.C. 1737 et seq.) is amended by adding at the end
the following new section:
‘‘SEC. 457. ECONOMIC SELF-SUFFICIENCY DEMONSTRATION
GRANT PROGRAM.
‘‘(a) AUTHORIZATION.—
‘‘(1) IN
GENERAL.—From funds available
under this part for the fiscal years 1997, 1998, and
1999, the Secretary shall use $1,500,000 in each
such fiscal year to provide grants to States to estab-
lish and carry out demonstration and exemplary pro-
grams to increase the number of participants in pro-
grams under part A of title II who are trained and
placed in jobs that yield long-term economic self-suf-
ficiency in accordance with the local economic self-
sufficiency standards tables under section 106(b)(9).
‘‘(2) LIMITATION.—The Secretary may provide
no more than 6 grants in each fiscal year under
paragraph (1).
‘‘(b) APPLICATION.—The Secretary may provide a
grant to a State under subsection (a) only if such State
submits to the Secretary an application which contains
such information as the Secretary may reasonably require.
180
‘‘(c) USE OF FUNDS.—
‘‘(1) IN GENERAL.—A State shall use amounts
received from a grant under subsection (a) to award
grants to service delivery areas and eligible service
providers described in paragraph (3) to develop and
test strategies to train, place, and retain participants
in jobs that yield long-term economic self-sufficiency
in accordance with the local economic self-sufficiency
standards tables under section 106(b)(9).
‘‘(2) APPROPRIATE
LEVEL
OF
SERVICES.—In
providing grants under paragraph (1), a State shall
ensure that each service delivery area or service pro-
vider provides for an appropriate level of services, in-
cluding supportive services, to participants using the
relevant local economic self-sufficiency standards ta-
bles developed by the service delivery area.
‘‘(3) ELIGIBLE SERVICE PROVIDERS.—Eligible
service providers described in this paragraph are
community-based organizations, educational institu-
tions, or any other service providers in the State
that have a demonstrated success in—
‘‘(A) providing occupational skills training
to participants for high-wage jobs; and
181
‘‘(B) ensuring that participants receive
supportive services in order to successfully com-
plete such training.
‘‘(d) ADMINISTRATIVE
AND RELATED COSTS.—In
any fiscal year in which a State receives amounts from
a grant under subsection (a), the State may retain an
amount not to exceed 10 percent of the grant amount to—
‘‘(1) pay the administrative costs of programs
established and carried out under subsection (a);
‘‘(2) facilitate the coordination of statewide ap-
proaches to training and placing participants in jobs
yielding long-term economic self-sufficiency; and
‘‘(3) provide technical assistance to service de-
livery areas and service providers.
‘‘(e) SELECTION.—In providing grants to States
under subsection (a), the Secretary shall consider—
‘‘(1) the extent to which the State has dem-
onstrated that the coordination of services provided
under this Act with services provided by agencies
and organizations addressing the basic needs of low-
income individuals, including housing, food, trans-
portation, dependent care, and health care, has re-
sulted in the prompt and efficient delivery of services
to participants under this Act;
182
‘‘(2) the extent to which the State has dem-
onstrated its capability to ensure the provision of all
needed supportive services to participants in any job
training program carried out in the State for the du-
ration of such participants’ enrollment;
‘‘(3) the extent of private sector involvement in
the development and implementation of training pro-
grams that increase opportunities for participants to
achieve long-term economic self-sufficiency under
this Act in the State;
‘‘(4) the extent to which the initiatives proposed
by a State in its application supplement or build
upon existing efforts in the State to train and place
individuals in jobs that increase opportunities for
participants to achieve long-term economic self-suffi-
ciency;
‘‘(5) whether the proposed amount of the grant
to be provided under subsection (a) is sufficient to
accomplish measurable goals;
‘‘(6) the extent to which the State is prepared
to disseminate information on its demonstration
training programs relating to training, placement,
and other services; and
183
‘‘(7) the extent to which the State is prepared
to produce materials that allow for replication of
such State’s demonstration training programs.
‘‘(f) EVALUATION.—The Secretary shall provide for
an evaluation of the programs established and carried out
under subsection (a), including evaluation of the effective-
ness of such programs in—
‘‘(1) assisting participants with varying needs
in achieving long-term economic self-sufficiency
through training, placement, and other services;
‘‘(2) effectively implementing the use of local
economic self-sufficiency standards tables to increase
the number of participants achieving long-term eco-
nomic self-sufficiency; and
‘‘(3) developing and replicating approaches to
assist participants with varying needs in achieving
long-term economic self-sufficiency through training,
placement, and other services.’’.
(b) CONFORMING AMENDMENT.—The table of con-
tents of such Act is amended by inserting after the item
relating to section 456 the following new item:
‘‘Sec. 457. Economic self-sufficiency demonstration grant program.’’.
SEC. 24008. REPORT AND RECOMMENDATIONS.
(a) REPORT.—Not later than 2 years after the date
on which the Secretary provides the 1st grant to a State
under section 457(a)(1) of the Job Training Partnership
184
Act and biennially thereafter, the Secretary of Labor shall
submit to the Congress a report on—
(1) the extent to which States, service delivery
areas, and other service providers have succeeded in
training, placing, and retaining participants enrolled
in programs under part A of title II of such Act in
jobs yielding long-term economic self-sufficiency; and
(2) the effectiveness of the demonstration pro-
grams established under section 457 of such Act in
developing and replicating approaches to train,
place, and retain participants in such jobs, including
a summary of activities performed by grant recipi-
ents under the demonstration programs authorized
under such section.
(b) RECOMMENDATIONS.—The report described in
subsection (a) shall include recommendations on—
(1) the need to continue, expand, or modify the
demonstration programs established under section
457 of the Job Training Partnership Act;
(2) legislative and administrative changes nec-
essary to increase opportunities for participants to
achieve long-term economic self-sufficiency; and
(3) legislative and administrative action nec-
essary to institutionalize the use of local economic
self-sufficiency standards tables as the principal
185
measure of performance for programs carried out
under part A of title II of the Job Training Partner-
ship Act (29 U.S.C. 1601 et seq.) such that—
(A) the basic measure of performance for
such programs shall be the achievement of long-
term economic self-sufficiency resulting from
participation in the program;
(B) placements are evaluated according to
whether the wages and employment benefits
meet the participant’s particular long-term eco-
nomic self-sufficiency needs;
(C) both wages and the cash value of em-
ployment benefits are used to determine wheth-
er a participant has achieved the self-sufficiency
standard for their particular family size and
composition;
(D) in order to ensure that participants
with varying needs are served equitably, the
placements shall be equitably distributed among
the categories contained in the summary needs
table established by the service delivery area in
the job training plan prepared under section
104(b)(14)(B) of the Job Training Partnership
Act; and
186
(E) 
incentive 
grants 
under 
section
106(b)(7) of such Act (29 U.S.C. 1516(b)(7))
are provided to service delivery areas based pri-
marily on the extent to which such areas exceed
the standards under the local economic self-suf-
ficiency standards table for such areas.
Subtitle E—Community
Reinvestment
SEC. 25001. REPORTING OF ACTUAL PERFORMANCE DATA.
(a) IN GENERAL.—The Community Reinvestment
Act of 1977 (12 U.S.C. 2901 et seq.) is amended by add-
ing at the end the following new section:
‘‘SEC. 809. REPORTING OF ACTUAL PERFORMANCE DATA.
‘‘(a) ESTABLISHMENT REQUIRED.—The appropriate
Federal financial supervisory agencies shall jointly develop
a format for collecting data from regulated financial insti-
tutions, in connection with examinations under section
804, concerning such institutions’ record of meeting the
credit needs of their local communities, including low- and
moderate-income neighborhoods.
‘‘(b) DATA REQUIRED.—The data required to be col-
lected under subsection (a) shall include the following:
‘‘(1) SMALL BUSINESS LENDING.—
‘‘(A) The aggregate number and dollar vol-
ume of loans originated, with a separate break-
187
out for originations to minority-owned and
women-owned businesses and start-up busi-
nesses.
‘‘(B) The aggregate number and dollar vol-
ume of loans originated under programs admin-
istered by the Small Business Administration,
with a separate break-out for minority-owned
and women-owned businesses.
‘‘(C) The aggregate number and dollar vol-
ume of small business loans originated by the
financial institution, compiled on the basis of
the racial and income characteristics in the in-
stitution’s entire community.
‘‘(2) COMMUNITY DEVELOPMENT.—
‘‘(A) The number and dollar volume of
loans to nonprofit child care, mental health,
and literacy centers and to nonprofit developers
of affordable housing.
‘‘(B) The financial institution’s participa-
tion in any community development project, in-
cluding a description of any partnerships devel-
oped with nonprofit community organizations,
that benefit the low- and moderate-income resi-
dents of the institution’s entire community.
188
‘‘(3) CONSUMER LOANS.—A statistical analysis
of the number and dollar volume of consumer loans
compiled on the basis of the racial and income char-
acteristics of neighborhoods in the institution’s en-
tire community.
‘‘(4) BRANCH CLOSURES.—
‘‘(A) A compilation of the number of the
institution’s branches and other deposit facili-
ties in neighborhoods of various racial and in-
come characteristics within the institution’s
community.
‘‘(B) An analysis of all openings and clos-
ings of branches and other deposit facilities by
the institution in the past 10 years in neighbor-
hoods of various racial and income characteris-
tics within the institution’s community.’’.
(b) DATA REQUIRED IN PUBLIC SECTION OF RE-
PORT.—Section 807(b)(1)(A) of the Community Reinvest-
ment Act of 1977 (12 U.S.C. 2906(b)(1)(A)) is amend-
ed—
(1) by striking ‘‘and’’ at the end of clause (ii);
(2) by striking the period at the end of clause
(iii) and inserting ‘‘; and’’; and
(3) by adding at the end the following new
clause:
189
‘‘(iv) contain the data required to be
collected with respect to the institution
pursuant to section 809.’’.
Subtitle F—Telecommunications
Economic Opportunity
SEC. 26001. FINDINGS.
The Congress finds the following:
(1) It is in the public interest for business en-
terprises owned by minorities and women to partici-
pate in procurement contracts of all providers of
telecommunications services.
(2) The opportunity for full participation in our
free enterprise system by business enterprises that
are owned by minorities and women is essential if
this Nation is to attain social and economic equality
for those businesses and improve the functioning of
the national economy.
(3) It is in this Nation’s interest to expedi-
tiously improve the economically disadvantaged posi-
tion of business enterprises that are owned by mi-
norities and women.
(4) The position of these businesses can be im-
proved through the development by the providers of
telecommunications services of substantial long-
range and annual goals, which are supported by
190
training and technical assistance, for the purchase,
to the maximum practicable extent, of technology,
equipment, supplies, services, material and construc-
tion from minority business enterprises.
(5) Procurement policies which include partici-
pation of business enterprises that are owned by mi-
norities and women also benefit the communication
industry and its consumers by encouraging the ex-
pansion of the numbers of suppliers for procure-
ment, thereby encouraging competition among sup-
pliers and promoting economic efficiency in the proc-
ess.
SEC. 26002. PURPOSE.
The purposes of this subtitle are—
(1) to encourage and foster greater economic
opportunity for business enterprises that are owned
by minorities and women;
(2) to promote competition among suppliers to
providers of telecommunications services and their
affiliates to enhance economic efficiency in the pro-
curement of telephone corporation contracts and
contracts of their State commission-regulated sub-
sidiaries and affiliates;
(3) to clarify and expand a program for the
procurement by State and federally-regulated tele-
191
phone companies of technology, equipment, supplies,
services, materials and construction work from busi-
ness enterprises that are owned by minorities and
women; and
(4) to ensure that a fair proportion of the total
purchases, contracts, and subcontracts for supplies,
commodities, technology, property, and services of-
fered by the providers of telecommunications services
and their affiliates are awarded to minority and
women business enterprises.
SEC. 26003. ANNUAL PLAN SUBMISSION.
(a) ANNUAL PLANS REQUIRED.—
(1) IN
GENERAL.—The Commission shall re-
quire each provider of telecommunications services
to submit annually a detailed and verifiable plan for
increasing its procurement from business enterprises
that are owned by minorities or women in all cat-
egories of procurement in which minorities are under
represented.
(2) CONTENTS OF PLANS.—The annual plans
required by paragraph (1) shall include (but not be
limited to) short- and long-term progressive goals
and timetables, technical assistance, and training
and shall, in addition to goals for direct contracting
opportunities, include methods for encouraging both
192
prime contractors and grantees to engage business
enterprises that are owned by minorities and women
in subcontracts in all categories in which minorities
are under represented.
(3) IMPLEMENTATION REPORT.—Each provider
of telecommunications services shall furnish an an-
nual report to the Commission regarding the imple-
mentation of programs established pursuant to this
subtitle in such form as the Commission shall re-
quire, and at such time as the Commission shall an-
nually designate.
(4) REPORT TO CONGRESS.—The Commission
shall provide an annual report to Congress, begin-
ning in January 1996, on the progress of activities
undertaken by each provider of telecommunications
services regarding the implementation of activities
pursuant to this subtitle to develop business enter-
prises that are owned by minorities or women. The
report shall evaluate the accomplishments under this
subtitle and shall recommend a program for enhanc-
ing the policy declared in this subtitle, together with
such recommendations for legislation as it deems
necessary or desirable to further that policy.
193
(b) REGULATIONS AND CRITERIA FOR DETERMINING
ELIGIBILITY OF MINORITY BUSINESS ENTERPRISES FOR
PROCUREMENT CONTRACTS.—
(1) IN GENERAL.—The Commission shall estab-
lish regulations for implementing programs pursuant
to this subtitle that will govern providers of tele-
communications services and their affiliates.
(2) VERIFYING
CRITERIA.—The Commission
shall develop and publish regulations setting forth
criteria for verifying and determining the eligibility
of business enterprises that are owned by minorities
or women for procurement contracts.
(3) OUTREACH.—The Commission’s regulations
shall require each provider of telecommunications
services and its affiliates to develop and to imple-
ment an outreach program to inform and recruit
business enterprises that are owned by minorities or
women to apply for procurement contracts under
this subtitle.
(4) ENFORCEMENT.—The Commission shall es-
tablish and promulgate such regulations necessary to
enforce the provisions of this subtitle.
(c) WAIVER AUTHORITY.—The requirements of this
section may be waived, in whole or in part, by the Commis-
sion with respect to a particular contract or subcontract
194
in accordance with guidelines set forth in regulations
which the Commission shall prescribe when it determines
that the application of such regulations prove to result in
undue hardship or unreasonable expense to a provider of
telecommunications services.
SEC. 26004. SANCTIONS AND REMEDIES.
(a) FALSE REPRESENTATION OF BUSINESSES; SANC-
TIONS.—
(1) IN GENERAL.—Any person or corporation,
through its directors, officers, or agent, which falsely
represents the business as a business enterprise that
is owned by minorities or women in the procurement
or attempt to procure contracts from telephone oper-
ating companies and their affiliates pursuant to this
article, shall be punished by a fine of not more than
$5,000, or by imprisonment for a period not to ex-
ceed 5 years of its directors, officers, or agents re-
sponsible for the false statements, or by both fine
and imprisonment.
(2) HOLDING
COMPANIES.—Any provider of
telecommunications services which falsely represents
its annual report to the Commission or its imple-
mentation of its programs pursuant to this section
shall be subject to a fine of $100,000 and be subject
to a penalty of up to 5 years restriction from partici-
195
pation in lines of business activities provided for in
this subtitle.
(b) INDEPENDENT CAUSE OF ACTION, REMEDIES,
AND ATTORNEY FEES.—
(1) DISCRIMINATION PROHIBITED.—No other-
wise qualified business enterprise that is owned by
minorities or women shall solely, by reason of its ra-
cial, ethnic, or gender composition be excluded from
the participation in, be denied the benefits of, or be
subjected to discrimination in procuring contracts
from telephone utilities.
(2) CIVIL ACTIONS AUTHORIZED.—Whenever a
qualified business enterprise that is owned by mi-
norities or women has reasonable cause to believe
that a provider of telecommunications services or its
affiliate is engaged in a pattern or practice of resist-
ance to the full compliance of any provision of this
subtitle, the business enterprise may bring a civil ac-
tion in the appropriate district court of the United
States against the provider of telecommunications
services or its affiliate requesting such monetary or
injunctive relief, or both, as deemed necessary to en-
sure the full benefits of this subtitle.
(3) ATTORNEYS’ FEES AND COSTS.—In any ac-
tion or proceeding to enforce or charge of a violation
196
of a provision of this subtitle, the court, in its discre-
tion, may allow the prevailing party reasonable at-
torneys’ fees and costs.
SEC. 26005. DEFINITIONS.
For the purpose of this subtitle, the following defini-
tions apply:
(1) The term ‘‘business enterprise owned by mi-
norities or women’’ means—
(A) a business enterprise that is at least
51 percent owned by a person or persons who
are minority persons or women; or
(B) in the case of any publicly owned busi-
ness, at least 51 percent of the stock of which
is owned by one or more persons who are mi-
nority persons or women, and whose manage-
ment and daily business operations are con-
trolled by one or more of those persons.
(2) The term ‘‘minority person’’ means persons
who are Black Americans, Hispanic Americans, Na-
tive Americans, Asian Americans, and Pacific Amer-
icans.
(3) The term ‘‘control’’ means exercising the
power to make financial and policy decisions.
197
(4) The term ‘‘operate’’ means the active in-
volvement in the day-to-day management of the
business and not merely being officers or directors.
(5) The term ‘‘Commission’’ means the Federal
Communications Commission.
(6) The term ‘‘telecommunications service’’
means the offering, on a common carrier basis, of
telecommunications facilities, or of telecommuni-
cations by means of such facilities. Such term does
not include an information service.
Subtitle G—HHS Women Scientist
Employment Opportunity
SEC. 27001. WOMEN’S SCIENTIFIC EMPLOYMENT.
The Public Health Service Act (42 U.S.C. 281 et
seq.) is amended by adding at the end the following title:
‘‘TITLE XXVII—WOMEN’S SCIENTIFIC EMPLOY-
MENT WITH DEPARTMENT OF HEALTH
AND HUMAN SERVICES
‘‘SEC. 2701. WOMEN’S SCIENTIFIC EMPLOYMENT.
‘‘(a) IN GENERAL.—
‘‘(1) IN GENERAL.—For each agency specified
in paragraph (2), the Secretary, in collaboration
with the head of the agency, shall—
‘‘(A) establish policies for the agency on
matters relating to the employment by the
198
agency of women as scientists, and periodically
review and as appropriate revise such policies;
and
‘‘(B) monitor the extent of compliance with
such policies and take appropriate action in
cases in which the Secretary determines that
the policies have been violated.
‘‘(2) SPECIFIED AGENCIES.—The agencies re-
ferred to in paragraph (1) are the National Insti-
tutes of Health, the Centers for Disease Control and
Prevention, the Food and Drug Administration, and
such other agencies or offices of the Department of
Health and Human Services as the Secretary deter-
mines to be appropriate.
‘‘(b) CERTAIN FUNCTIONS.—
‘‘(1) IN GENERAL.—In carrying out subsection
(a) with respect to a specified agency, the Secretary
shall provide for the following:
‘‘(A) Determining the concerns of women
scientists employed at the agency.
‘‘(B) Developing a policy defining the
standard tenure process for employment at the
agency.
199
‘‘(C) Determining the reason for departure
from the agency by interviewing women and
men scientists as they leave.
‘‘(D) Distributing yearly to all employees
of the agency of the policy of the agency on
flexible family leave.
‘‘(E) Monitoring the number of women, in-
cluding minority women, included on the com-
mittees, panels, and other working groups (and
in meetings) of the agency.
‘‘(F) Making efforts to recruit minority
women, based on the small numbers of tenured
minority women scientists.
‘‘(G) Developing additional goals related to
women and minority women scientists at the
agency.
‘‘(2) AGENCY-SPECIFIC PROVISIONS.—With re-
spect to the National Institutes of Health, in carry-
ing out subsection (a), the Secretary shall (in addi-
tion to activities under paragraph (1)) provide for
the implementation of the recommendations of the
group known as the Task Force on the Status of
NIH Intramural Women Scientists.
‘‘(c) INCLUSION OF WOMEN ON INTRAMURAL AND
EXTRAMURAL CONFERENCES AND OTHER GROUPS.—
200
‘‘(1) IN GENERAL.—The Secretary shall estab-
lish a policy at each specified agency of requiring in-
clusion of women scientists in greater numbers on or
in conferences, workshops, meetings, international
congresses, and other groups funded or sponsored by
the agency. Such policy shall provide for the inclu-
sion of not less than one woman scientist in each
such group, except as provided in paragraph (2).
This paragraph applies whether such groups are
held for employees of the agency headquarters, for
employees of field offices, or both.
‘‘(2) EXCLUSION; WRITTEN
EXPLANATION.—
The policy established in paragraph (1) may provide
that no woman scientist will be included in a group
for purposes of such paragraph if the Secretary pro-
vides a waiver of the requirement. The Secretary
may grant such a waiver only if—
‘‘(A) the individual with the chief respon-
sibility for the group involved submits to the
Secretary a written request for the waiver and
the request provides an explanation of the rea-
sons underlying the need for the waiver; and
‘‘(B) the Secretary makes a determination
that extraordinary circumstances justify provid-
ing the waiver.
201
‘‘(d) STUDY ON PAY EQUITY.—
‘‘(1) IN GENERAL.—For each specified agency,
the Secretary shall provide for a study to identify
any pay differences among men and women sci-
entists employed by the agency, both tenured and
untenured. The study shall include recommendations
on measures to adjust any disparities or inequities,
and shall identify a program to communicate infor-
mation on salary ranges to all employees.
‘‘(2) REPORT.—Not later than 240 days after
the date of the enactment of the Economic Equity
Act of 1996, the Secretary shall complete the study
required in paragraph (1) and submit to the Com-
mittee on Commerce of the House of Representa-
tives, and to the Committee on Labor and Human
Resources of the Senate, a report describing the
findings made as a result of the study.
‘‘(e) DEFINITIONS.—For purposes of this section, the
term ‘specified agency’ means an agency specified in sub-
section (a)(2).
‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—For the
purpose of carrying out this section, there are authorized
to be appropriated such sums as may be necessary for
each of the fiscal years 1997 through 1999.’’.
202
Subtitle H—Women in Enterprise
Development
SEC. 28001. WOMEN IN ENTERPRISE DEVELOPMENT.
Chapter 1 of part I of the Foreign Assistance Act
of 1961 is amended by inserting after section 113 the fol-
lowing:
‘‘SEC. 114. WOMEN IN ENTERPRISE DEVELOPMENT.
‘‘(a) ESTABLISHMENT
OF PROGRAM.—In carrying
out this part, the Administrator of the Agency for Inter-
national Development shall establish and implement a
Women in Enterprise Development Program.
‘‘(b) DESCRIPTION
OF PROGRAM.—This program
shall provide funding and other support for projects hav-
ing the following 3 interrelated components:
‘‘(1) FINANCIAL ASSISTANCE.—The provision of
financial assistance to women—
‘‘(A) to support the creation of small- to
medium-size businesses in which women can
readily participate;
‘‘(B) to foster investment in businesses
substantially owned or managed by women; and
‘‘(C) to enable such women to further their
education.
‘‘(2) EDUCATIONAL
ASSISTANCE.—The provi-
sion of assistance to encourage and support efforts
203
of indigenous educational institutions, and where ap-
propriate other organizations—
‘‘(A) to encourage women to participate in
the processes of local and national government,
and to stimulate the interest of women in busi-
ness;
‘‘(B) to prepare women for involvement in
government and business;
‘‘(C) to provide opportunities for women to
gain practical experience in government and
business through internships or on-the-job ap-
prenticeships while in school;
‘‘(D) to provide women with remedial as-
sistance whenever necessary; and
‘‘(E) to identify women with leadership po-
tential to serve as role models, and to assist
such women in furthering their education and
obtaining suitable positions in the public or pri-
vate sector.
Assistance under this paragraph shall encourage the
development and implementation of guidelines to be
used by secondary and postsecondary education in-
stitutions to achieve the objectives described in sub-
paragraphs (A) through (E) through the develop-
ment of appropriate curricula and other means.
204
‘‘(3) INFORMATION
ASSISTANCE.—The provi-
sion of assistance to support the creation or expan-
sion of local resource centers which offer to women
interested in careers in business, government, or re-
lated fields—
‘‘(A) courses in accounting, bookkeeping,
and elementary marketing practices, and other
courses; and
‘‘(B) workshops, informational materials,
career counseling, and assistance in the local
community.
‘‘(c) ELIGIBILITY CRITERIA FOR FINANCIAL ASSIST-
ANCE.—The Administrator of the Agency for Inter-
national Development shall develop criteria for identifying
the women who are eligible to receive financial assistance
under subsection (b)(1).
‘‘(d) INITIAL FUNDING LEVEL.—The Congress urges
the Administrator of the Agency for International Devel-
opment, in carrying out this section during fiscal year
1997, to use not less than an amount equal to 10 percent
of the amount made available under this part for assist-
ance for micro-enterprise development.
‘‘(e) ANNUAL REPORTS.—The annual congressional
presentation materials on economic assistance shall in-
clude a description of the assistance being provided under
205
this section, including the amount that was provided for
such assistance during preceding fiscal year, the amount
estimated to be provided during the current fiscal year,
and the amount proposed for the coming fiscal year.’’.
TITLE III—WORK AND FAMILY
Subtitle A—Child Care
Consolidation and Investment
SEC. 31001. FINDINGS.
Congress finds that—
(1) fragmentation of the Federal Government’s
major child care assistance programs has left gaps
for many parents moving from welfare to work;
(2) child care problems have prevented 34 per-
cent of poor mothers between the ages 21 and 29
from working;
(3) 2⁄3 of all families receiving assistance under
the Aid to Families with Dependent Children pro-
gram have at least one preschool age child and need
child care in order to work;
(4) there already exists an unmet need for child
care assistance—37 States now have waiting lists
that can run as high as 35,000 individuals;
(5) child care directly affects an individual’s
ability to stay in the work force;
206
(6) welfare reform that places work at its cen-
ter will increase the demand for child care and re-
quire an additional investment of resources;
(7) child care consumes $260 per month or
about 27 percent of income for average working poor
families, leaving them with less income than families
eligible for assistance under the Aid to Families with
Dependent Children program;
(8) quality must be a central feature of the
child care policy of the United States;
(9) only 1 in 7 day care centers offer good qual-
ity care;
(10) 40 percent of day care centers serving in-
fants and toddlers do not meet basic sanitary condi-
tions, have safety problems, and do not encourage
learning; and
(11) only 9 percent of family and relative day
care is considered good quality care.
SEC. 31002. PURPOSE.
It is the purpose of this subtitle to—
(1) eliminate program fragmentation and create
a seamless system of high quality child care that al-
lows for continuity of care for children as parents
move from welfare to job training to work;
207
(2) provide for parental choice among high
quality child care programs; and
(3) increase the availability of high quality af-
fordable child care in order to promote self suffi-
ciency and support working families.
SEC. 31003. AMENDMENTS TO CHILD CARE AND DEVELOP-
MENT BLOCK GRANT ACT OF 1990.
(a) APPROPRIATIONS.—Section 658B of the Child
Care and Development Block Grant Act of 1990 (42
U.S.C. 9858) is amended to read as follows:
‘‘SEC. 658B. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated to carry out
this subchapter, $2,790,000,000 for fiscal year 1997,
$3,040,000,000 for fiscal year 1998, $3,460,000,000 for
fiscal year 1999, $4,030,000,000 for fiscal year 2000, and
$4,680,000,000 for fiscal year 2001.’’.
(b) AWARDING OF GRANTS.—Section 658C of the
Child Care and Development Block Grant Act of 1990 (42
U.S.C. 9858a) is amended by striking ‘‘is authorized to’’
and inserting ‘‘shall’’.
(c) SUPPLEMENTATION.—Section 658E(c)(2)(J) of
the Child Care and Development Block Grant Act of 1990
(42 U.S.C. 9858c(c)(2)(J)) is amended by inserting ‘‘in
fiscal year 1995’’ before the period.
208
(d) SET-ASIDES FOR QUALITY AND WORKING FAMI-
LIES, 
AND
CHILD
CARE
GUARANTEE.—Section
658E(c)(3) of the Child Care and Development Block
Grant Act of 1990 (42 U.S.C. 9858c(c)(3))—
(1) in subparagraph (C), by striking ‘‘25 per-
cent’’ and inserting ‘‘20 percent’’; and
(2) by adding at the end thereof the following:
‘‘(D) 
ASSISTANCE
FOR
LOW-INCOME
WORKING FAMILIES.—The State shall reserve
not less than 50 percent of the amount provided
to the State and available for providing services
under this subchapter, to carry out child care
activities to support low-income working fami-
lies residing in the State.
‘‘(E) 
CHILD
CARE
GUARANTEE.—The
State plan shall provide assurances that the
availability of child care under the grant will be
coordinated in an appropriate manner (as de-
termined by the Secretary) with the require-
ments of part A of title IV of the Social Secu-
rity Act. Such coordination shall ensure that
the single custodial parent of a dependent child
who is less than 11 years of age, or who is a
child with a disability (as defined in section
602(1)(A) of the Individuals with Disabilities
209
Act (20 U.S.C. 1401(1)(A)), is not required to
undertake an education, job training, job
search, or employment requirement unless child
care assistance in an appropriate child care pro-
gram is made available.’’.
(e) MATCHING REQUIREMENT.—Section 658E(c) of
the Child Care and Development Block Grant Act of 1990
(42 U.S.C. 9858c(c)) is amended by adding at the end
thereof the following:
‘‘(6) MATCHING REQUIREMENT.—With respect
to amounts made available to a State in each fiscal
year beginning on or after the effective date of this
paragraph, that exceed the aggregate amounts re-
ceived by the State for child care services in fiscal
year 1995, the State plan shall provide that, with re-
spect to the costs to be incurred by the State in car-
rying out the activities for which a grant under this
subchapter is awarded, the State will make available
(directly or through in-kind donations from public or
private entities) non-Federal contributions in an
amount equal to not less than $1 for every $4 of
Federal funds provided under the grant.’’.
(f) IMPROVING QUALITY.—
(1) INCREASE IN REQUIRED FUNDING.—Section
658G of the Child Care and Development Block
210
Grant Act of 1990 (42 U.S.C. 9858e) is amended by
striking ‘‘not less than 20 percent’’ and inserting
‘‘50 percent’’.
(2) QUALITY IMPROVEMENT INCENTIVE INITIA-
TIVE.—Section 658G of the Child Care and Develop-
ment Block Grant Act of 1990 (42 U.S.C. 9858e)
is amended—
(A) by striking ‘‘A State’’ and inserting
‘‘(a) IN GENERAL.—A State’’; and
(B) by adding at the end thereof the fol-
lowing:
‘‘(b) QUALITY IMPROVEMENT INCENTIVE INITIA-
TIVE.—
‘‘(1) IN GENERAL.—The Secretary shall estab-
lish a child care quality improvement incentive ini-
tiative to make funds available to States that dem-
onstrate progress in the implementation of—
‘‘(A) innovative teacher training programs
such as the Department of Defense staff devel-
opment and compensation program for child
care personnel; or
‘‘(B) enhanced child care quality standards
and licensing and monitoring procedures.
‘‘(2) FUNDING.—From the amounts made
available for each fiscal year under subsection (a),
211
the 
Secretary 
shall 
reserve 
not 
to 
exceed
$50,000,000 in each such fiscal year to carry out
this subsection.’’.
(g) BEFORE- AND AFTER-SCHOOL SERVICES.—Sec-
tion 658H(a) of the Child Care and Development Block
Grant Act of 1990 (42 U.S.C. 9858f(a)) is amended by
striking ‘‘not less than 75 percent’’ and inserting ‘‘50 per-
cent’’.
(h) PAYMENTS.—Section 658J(a) of the Child Care
and Development Block Grant Act of 1990 (42 U.S.C.
9858h) is amended by striking ‘‘Subject to the availability
of appropriation, a’’ and inserting ‘‘A’’.
(i) ALLOTMENTS.—Section 658O(b) of the Child
Care and Development Block Grant Act of 1990 (42
U.S.C. 9858m(b)) is amended by adding at the end there-
of the following:
‘‘(5) ALLOTMENT.—
‘‘(A) BASE ALLOTMENT.—The amount al-
lotted to a State under this section shall include
the base amount that the State received under
this Act, and under the provisions repealed
under section 31004 of the Economic Equity
Act of 1996, in fiscal year 1995.
‘‘(B) 
ADDITIONAL
AMOUNTS.—Any
amounts appropriated under section 658B for a
212
fiscal year and remaining after the requirement
of subparagraph (A) is complied with, shall be
allotted to States pursuant to the formula de-
scribed in paragraph (1).’’.
SEC. 31004. PROGRAM REPEALS.
(a) AFDC JOBS 
AND
TRANSITIONAL
CHILD
CARE.—
(1) REPEAL.—Paragraphs (1), (3), (4), (5),
(6), and (7) of section 402(g) of the Social Security
Act (42 U.S.C. 602(g)) are repealed.
(2) CONFORMING
AMENDMENTS.—Part A of
title IV of the Social Security Act (42 U.S.C. 601
et seq.) is amended—
(A) in section 402(a)(19) (42 U.S.C.
602(a)(19))—
(i) in subparagraph (B)(i)(I), by strik-
ing ‘‘section 402(g)’’ and inserting ‘‘the
Child Care Development Block Grant Act
of 1990 (42 U.S.C. 9858 et seq.)’’;
(ii) in subparagraph (C)(iii)(II), by
striking ‘‘section 402(g)’’ and inserting
‘‘the Child Care Development Block Grant
Act of 1990 (42 U.S.C. 9858 et seq.)’’;
(iii) in subparagraph (D), by striking
‘‘section 402(g)’’ and inserting ‘‘the Child
213
Care Development Block Grant Act of
1990 (42 U.S.C. 9858 et seq.)’’; and
(iv) in subparagraph (F)(iv), by strik-
ing ‘‘section 402(g)’’ and inserting ‘‘section
402(g)(2) and the Child Care Development
Block Grant Act of 1990 (42 U.S.C. 9858
et seq.)’’;
(B) in section 402(g)(2) (42 U.S.C.
602(g)(2)), by striking ‘‘(in addition to guaran-
teeing child care under paragraph (1))’’; and
(C) in section 403(l)(1)(A) (42 U.S.C.
603(l)(1)(A)), by striking ‘‘(including expendi-
tures 
for 
child 
care 
under 
section
402(g)(1)(A)(i), but only in the case of a State
with respect to which section 1108 applies)’’.
(b) AT-RISK CHILD CARE.—Sections 402(i) and
403(n) of the Social Security Act (42 U.S.C. 602(i),
603(n)) are repealed.
(c) STATE DEPENDENT CARE GRANTS.—Subchapter
E of chapter 8 of subtitle A of title VI of the Omnibus
Budget Reconciliation Act of 1981 (42 U.S.C. 9871 et
seq.) is repealed.
(d) CHILD DEVELOPMENT ASSOCIATE SCHOLARSHIP
ASSISTANCE ACT.—The Child Development Associate
214
Scholarship Assistance Act of 1985 (42 U.S.C. 10901 et
seq.) is repealed.
(e) SECRETARIAL SUBMISSION OF LEGISLATIVE PRO-
POSAL
FOR
TECHNICAL
AND
CONFORMING
AMEND-
MENTS.—The Secretary of Health and Human Services
shall, within 90 days after the date of the enactment of
this subtitle, submit to the appropriate committees of the
Congress, a legislative proposal providing for such tech-
nical and conforming amendments in the law as are re-
quired by the provisions of subsections (a) and (c).
SEC. 31005. EFFECTIVE DATE.
This subtitle shall take effect on the first day of the
first fiscal year beginning after the date of the enactment
of this subtitle.
Subtitle B—Child Care Public
Private Partnership
SEC. 32001. ESTABLISHMENT OF BUSINESS INCENTIVE
GRANT PROGRAM.
The Secretary of Health and Human Services shall
establish a program to make grants to—
(1) businesses and consortia—
(A) to pay start-up costs incurred to pro-
vide child care services; or
(B) to provide additional child care serv-
ices;
215
needed by the employees of such businesses; and
(2) nonprofit business organizations to provide
technical information and assistance to enable busi-
nesses to provide child care services.
SEC. 32002. ELIGIBILITY TO RECEIVE GRANTS.
To be eligible to receive a grant under section 32001,
a business, nonprofit business organization, or consortium
shall submit to the Secretary an application in accordance
with section 32003.
SEC. 32003. APPLICATION.
The application required by section 32002 shall be
submitted by a business, nonprofit business organization,
or consortium at such time, in such form, and containing
such information as the Secretary may require by rule,
except that such application shall contain—
(1) an assurance that the applicant shall ex-
pend, for the purpose for which such grant is made,
an amount not less than 200 percent of the amount
of such grant;
(2) an assurance that such applicant will ex-
pend such grant for the use specified in paragraph
(1) or (2) of section 32001, as the case may be;
(3) an assurance that such applicant will em-
ploy strategies to ensure that child care services pro-
vided by such applicant, or provided with the tech-
216
nical information and assistance made available by
such applicant, are provided at affordable rates, and
on an equitable basis, to low- and moderate-income
employees;
(4) an assurance that such applicant—
(A) in the case of a business or consor-
tium, will comply with all State and local licens-
ing requirements applicable to such business or
consortium concerning the provision of child
care services; or
(B) in the case of a nonprofit business or-
ganization, will employ procedures to ensure
that technical information and assistance pro-
vided under this subtitle by such business orga-
nization will be provided only to businesses that
provide child care services in compliance with
all State and local licensing requirements appli-
cable to child care providers in such State; and
(5) in the case of a business or consortium, an
assurance that if the employees of such applicant do
not require all the child care services for which such
grant and the funds required by paragraph (1) are
to be expended by such applicant, the excess of such
child care services shall be made available to families
in the community in which such applicant is located.
217
SEC. 32004. SELECTION OF GRANTEES.
For purposes of selecting applicants to receive grants
under this subtitle, the Secretary shall give priority to
businesses that have fewer than 100 full-time employees.
To the extent practicable, the Secretary shall—
(1) make grants equitably under this subtitle to
applicants located in all geographical regions of the
United States; and
(2) give priority to applicants for grants under
section 32001(1).
SEC. 32005. DEFINITIONS.
As used in the Act:
(1) BUSINESS.—The term ‘‘business’’ means a
person engaged in commerce whose primary activity
is not providing child care services.
(2) CHILD CARE SERVICES.—The term ‘‘child
care services’’ means care for a child that is—
(A) provided on the site at which a parent
of such child is employed or at a site nearby in
the community; and
(B) subsidized at least in part by the busi-
ness that employs such parent.
(3) CONSORTIUM.—The term ‘‘consortium’’
means 2 or more businesses acting jointly. A consor-
tium may also include a nonprofit private organiza-
tion.
218
(4) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Health and Human Services.
SEC. 32006. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated to carry out
this subtitle $25,000,000 for each of the fiscal years 1994,
1995, 1996, and 1997.
Subtitle C—Dependent Care Tax
Credit Refundability
SEC. 33001. DEPENDENT CARE TAX CREDIT.
(a) DEPENDENT CARE SERVICES.—Subpart C of
part IV of subchapter A of chapter 1 of the Internal Reve-
nue Code of 1986 (relating to refundable credits) is
amended by redesignating section 35 as section 36 and
by inserting after section 34 the following new section:
‘‘SEC. 35. DEPENDENT CARE SERVICES.
‘‘(a) ALLOWANCE OF CREDIT.—
‘‘(1) IN GENERAL.—In the case of an individual
who maintains a household which includes as a
member 1 or more qualifying individuals, there shall
be allowed as a credit against the tax imposed by
this subtitle for the taxable year an amount equal to
the applicable percentage of the sum of—
‘‘(A) the employment-related expenses paid
by such individual during the taxable year, plus
219
‘‘(B) the respite care expenses paid by
such individual during the taxable year.
‘‘(2) APPLICABLE PERCENTAGE DEFINED.—
‘‘(A) IN GENERAL.—For purposes of para-
graph (1), the term ‘applicable percentage’
means 50 percent reduced (but not below 20
percent) by 1 percentage point for each full
$1,000 amount by which the taxpayer’s ad-
justed gross income for the taxable year exceeds
$15,000.
‘‘(B) COST-OF-LIVING ADJUSTMENT.—
‘‘(i) IN GENERAL.—In the case of a
taxable year beginning in a calendar year
after 1997, subparagraph (A) shall be ap-
plied by increasing the $15,000 amount
contained therein by the cost-of-living ad-
justment (as defined in section 1(f)(3)) for
such calendar year determined by sub-
stituting ‘1996’ for ‘1992’ in subparagraph
(B) of section 1(f)(3).
‘‘(ii) ROUNDING.—If any increase de-
termined under clause (i) is not a multiple
of $10, such increase shall be rounded to
the nearest multiple of $10 (or if such in-
crease is a multiple of $15, such increase
220
shall be increased to the next highest mul-
tiple of $10).
‘‘(b) EMPLOYMENT-RELATED EXPENSES.—For pur-
poses of this section—
‘‘(1) 
DETERMINATION
OF
ELIGIBLE
EX-
PENSES.—
‘‘(A) IN
GENERAL.—The term ‘employ-
ment-related expenses’ means amounts paid for
the following expenses, but only if such ex-
penses are incurred to enable the taxpayer to be
gainfully employed for any period for which
there are 1 or more qualifying individuals with
respect to the taxpayer:
‘‘(i) expenses for household services,
and
‘‘(ii) expenses for the care of a quali-
fying individual.
Such term shall not include any amount paid
for services outside the taxpayer’s household at
a camp where the qualifying individual stays
overnight and shall not include any respite care
expense taken into account under subsection
(a).
‘‘(B) 
EXCEPTION.—Employment-related
expenses described in subparagraph (A) which
221
are incurred for services outside the taxpayer’s
household shall be taken into account only if in-
curred for the care of—
‘‘(i) a qualifying individual described
in subsection (d)(1), or
‘‘(ii) a qualifying individual (not de-
scribed in subsection (d)(1)) who regularly
spends at least 8 hours each day in the
taxpayer’s household.
‘‘(C) DEPENDENT
CARE
CENTERS.—Em-
ployment-related expenses described in subpara-
graph (A) which are incurred for services pro-
vided outside the taxpayer’s household by a de-
pendent care center (as defined in subpara-
graph (D)) shall be taken into account only if—
‘‘(i) such center complies with all ap-
plicable laws and regulations of a State or
unit of local government, and
‘‘(ii) the requirements of subpara-
graph (B) are met.
‘‘(D) DEPENDENT
CARE
CENTER
DE-
FINED.—For purposes of this paragraph, the
term ‘dependent care center’ means any facility
which—
222
‘‘(i) provides care for more than 6 in-
dividuals (other than individuals who re-
side at the facility), and
‘‘(ii) receives a fee, payment, or grant
for providing services for any of the indi-
viduals (regardless of whether such facility
is operated for profit).
‘‘(2) 
DOLLAR
LIMIT
ON
AMOUNT
CRED-
ITABLE.—
‘‘(A) IN
GENERAL.—The amount of the
employment-related expenses incurred during
any taxable year which may be taken into ac-
count under subsection (a) shall not exceed—
‘‘(i) $2,400 if there is 1 qualifying in-
dividual with respect to the taxpayer for
such taxable year, or
‘‘(ii) $4,800 if there are 2 or more
qualifying individuals with respect to the
taxpayer for such taxable year.
The amount determined under clause (i) or (ii)
(whichever is applicable) shall be reduced by the
aggregate amount excludable from gross income
under section 129 for the taxable year.
‘‘(B) REDUCTION IN LIMIT FOR AMOUNT
OF RESPITE CARE EXPENSES.—The limitation
223
of subparagraph (A) shall be reduced by the
amount of the respite care expenses taken into
account by the taxpayer under subsection (a)
for the taxable year.
‘‘(3) EARNED INCOME LIMITATION.—
‘‘(A) IN GENERAL.—Except as otherwise
provided in this paragraph, the amount of the
employment-related expenses incurred during
any taxable year which may be taken into ac-
count under subsection (a) shall not exceed—
‘‘(i) in the case of an individual who
is not married at the close of such year,
such individual’s earned income for such
year, or
‘‘(ii) in the case of an individual who
is married at the close of such year, the
lesser of such individual’s earned income or
the earned income of his spouse for such
year.
‘‘(B) SPECIAL RULE FOR SPOUSE WHO IS
A
STUDENT
OR
INCAPABLE
OF
CARING
FOR
HIMSELF.—In the case of a spouse who is a
student or a qualified individual described in
subsection (d)(3), for purposes of subparagraph
(A), such spouse shall be deemed for each
224
month during which such spouse is a full-time
student at an educational institution, or is such
a qualifying individual, to be gainfully employed
and to have earned income of not less than—
‘‘(i) $200 if paragraph (2)(A)(i) ap-
plies for the taxable year, or
‘‘(ii) $400 if paragraph (2)(A)(ii) ap-
plies for the taxable year.
In the case of any husband and wife, this sub-
paragraph shall apply with respect to only one
spouse for any one month.
‘‘(c) RESPITE CARE EXPENSES.—For purposes of
this section—
‘‘(1) IN GENERAL.—The term ‘respite care ex-
penses’ means expenses paid (whether or not to en-
able the taxpayer to be gainfully employed) for—
‘‘(A) the care of a qualifying individual—
‘‘(i) who has attained the age of 13,
or
‘‘(ii) who is under the age of 13 but
has a physical or mental impairment which
results in the individual being incapable of
caring for himself,
225
during any period when such individual regu-
larly spends at least 8 hours each day in the
taxpayer’s household, or
‘‘(B) care (for not more than 14 days dur-
ing the calendar year) of a qualifying individual
described in subparagraph (A) during any pe-
riod during which the individual does not regu-
larly spend at least 8 hours each day in the tax-
payer’s household.
‘‘(2) DOLLAR LIMIT.—The amount of the res-
pite care expenses incurred during any taxable year
which may be taken into account under subsection
(a) shall not exceed—
‘‘(A) $1,200 if such expenses are incurred
with respect to only 1 qualifying individual for
the taxable year, or
‘‘(B) $2,400 if such expenses are incurred
for 2 or more qualifying individuals for such
taxable year.
‘‘(d) QUALIFYING INDIVIDUAL.—For purposes of this
section, the term ‘qualifying individual’ means—
‘‘(1) a dependent of the taxpayer who is under
the age of 13 and with respect to whom the taxpayer
is entitled to a deduction under section 151(c),
226
‘‘(2) a dependent of the taxpayer who is phys-
ically or mentally incapable of caring for himself, or
‘‘(3) the spouse of the taxpayer, if he is phys-
ically or mentally incapable of caring for himself.
‘‘(e) SPECIAL RULES.—For purposes of this sec-
tion—
‘‘(1) MAINTAINING
HOUSEHOLD.—An individ-
ual shall be treated as maintaining a household for
any period only if over half the cost of maintaining
the household for such period is furnished by such
individual (or, if such individual is married during
such period, is furnished by such individual and his
spouse).
‘‘(2) MARRIED COUPLES MUST FILE JOINT RE-
TURN.—If the taxpayer is married at the close of
the taxable year, the credit shall be allowed under
subsection (a) only if the taxpayer and his spouse
file a joint return for the taxable year.
‘‘(3) MARITAL STATUS.—An individual legally
separated from his spouse under a decree of divorce
or of separate maintenance shall not be considered
as married.
‘‘(4) CERTAIN
MARRIED
INDIVIDUALS
LIVING
APART.—If—
227
‘‘(A) an individual who is married and who
files a separate return—
‘‘(i) maintains as his home a house-
hold which constitutes for more than one-
half of the taxable year the principal place
of abode of a qualifying individual, and
‘‘(ii) furnishes over half the cost of
maintaining such household during the
taxable year, and
‘‘(B) during the last 6 months of such tax-
able year such individual’s spouse is not a mem-
ber of such household,
such individual shall not be considered as married.
‘‘(5) SPECIAL DEPENDENCY TEST IN CASE OF
DIVORCED PARENTS, ETC.—If—
‘‘(A) paragraph (2) or (4) of section
152(e) applies to any child with respect to any
calendar year, and
‘‘(B) such child is under the age of 13 or
is physically or mentally incapable of caring for
himself,
in the case of any taxable year beginning in such
calendar year, such child shall be treated as a quali-
fying individual with respect to the custodial parent
(within the meaning of section 152(e)(1)), and shall
228
not be treated as a qualifying individual with respect
to the noncustodial parent.
‘‘(6) PAYMENTS TO RELATED INDIVIDUALS.—
No credit shall be allowed under subsection (a) for
any amount paid by the taxpayer to an individual—
‘‘(A) with respect to whom, for the taxable
year, a deduction under section 151(c) (relating
to deduction for personal exemptions for de-
pendents) is allowable either to the taxpayer or
his spouse, or
‘‘(B) who is a child of the taxpayer (within
the meaning of section 151(c)(3)) who has not
attained the age of 19 at the close of the tax-
able year.
For purposes of this paragraph, the term ‘taxable
year’ means the taxable year of the taxpayer in
which the service is performed.
‘‘(7) STUDENT.—The term ‘student’ means an
individual who during each of 5 calendar months
during the taxable year is a full-time student at an
educational organization.
‘‘(8) EDUCATIONAL ORGANIZATION.—The term
‘educational organization’ means an educational or-
ganization described in section 170(b)(1)(A)(ii).
229
‘‘(9) IDENTIFYING
INFORMATION
REQUIRED
WITH RESPECT TO SERVICE PROVIDER.—No credit
shall be allowed under subsection (a) for any amount
paid to any person unless—
‘‘(A) the name, address, and taxpayer
identification number of such person are in-
cluded on the return claiming the credit, or
‘‘(B) if such person is an organization de-
scribed in section 501(c)(3) and exempt from
tax under section 501(a), the name and address
of such person are included on the return
claiming the credit.
In the case of a failure to provide the information
required under the preceding sentence, the preceding
sentence shall not apply if it is shown that the tax-
payer exercised due diligence in attempting to pro-
vide the information so required.
‘‘(f) REGULATIONS.—The Secretary shall prescribe
such regulations as may be necessary to carry out the pur-
poses of this section.’’
(b) CONFORMING AMENDMENTS.—
(1) Section 21 of such Code is hereby repealed.
(2) Paragraph (2) of section 129(b) of such
Code is amended by striking ‘‘section 21(d)(2)’’ and
inserting ‘‘section 35(b)(3)(B)’’.
230
(3) Subsection (e) of section 213 of such Code
is amended by striking ‘‘section 21’’ and inserting
‘‘section 35’’.
(c) TECHNICAL AMENDMENTS.—
(1) The table of sections for subpart C of part
IV of subchapter A of chapter 1 of such Code is
amended by striking the item relating to section 35
and inserting the following:
‘‘Sec. 35. Dependent care services.
‘‘Sec. 36. Overpayments of tax.’’
(2) The table of sections for subpart A of such
part IV is amended by striking the item relating to
section 21.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1996.
Subtitle D—IRA Deductions for
Homemakers
SEC. 34001. HOMEMAKERS ELIGIBLE FOR FULL IRA DEDUC-
TION.
(a) SPOUSAL IRA COMPUTED ON BASIS OF COM-
PENSATION OF BOTH SPOUSES.—Subsection (c) of section
219 of the Internal Revenue Code of 1986 (relating to
special rules for certain married individuals) is amended
to read as follows:
231
‘‘(c) SPECIAL RULES FOR CERTAIN MARRIED INDI-
VIDUALS.—
‘‘(1) IN GENERAL.—In the case of an individual
to whom this paragraph applies for the taxable year,
the limitation of paragraph (1) of subsection (b)
shall be equal to the lesser of—
‘‘(A) $2,000, or
‘‘(B) the sum of—
‘‘(i) the compensation includible in
such individual’s gross income for the tax-
able year, plus
‘‘(ii) the compensation includible in
the gross income of such individual’s
spouse for the taxable year reduced by the
amount allowable as a deduction under
subsection (a) to such spouse for such tax-
able year.
‘‘(2) INDIVIDUALS
TO
WHOM
PARAGRAPH
(1)
APPLIES.—Paragraph (1) shall apply to any individ-
ual if—
‘‘(A) such individual files a joint return for
the taxable year, and
‘‘(B) the amount of compensation (if any)
includible in such individual’s gross income for
the taxable year is less than the compensation
232
includible in the gross income of such individ-
ual’s spouse for the taxable year.’’
(b) IRA ALLOWED FOR SPOUSES WHO ARE NOT AC-
TIVE PLAN PARTICIPANTS.—Section 219(g)(1) of the In-
ternal Revenue Code of 1986 is amended by striking ‘‘or
the individual’s spouse’’.
(c) CONFORMING AMENDMENTS.—
(1) Paragraph (2) of section 219(f) of the In-
ternal Revenue Code of 1986 (relating to other defi-
nitions and special rules) is amended by striking
‘‘subsections (b) and (c)’’ and inserting ‘‘subsection
(b)’’.
(2) Section 408(d)(5) of such Code is amended
by striking ‘‘$2,250’’ and inserting ‘‘$2,000’’.
(d) EFFECTIVE DATE.—The amendments made by
this subtitle shall apply to taxable years beginning after
December 31, 1996.
Subtitle E—Federal Parental Leave
for Education Activities
SEC. 35001. COVERAGE OF EMPLOYEES.
Paragraphs (2)(B)(ii) and (4)(A)(i) of section 101 of
the Family and Medical Leave Act of 1993 (29 U.S.C.
2611 (2)(B)(ii) and (4)(A)(i)) are amended by striking
‘‘50’’ each place it appears and inserting ‘‘25’’.
233
SEC. 35002. PARENTAL INVOLVEMENT LEAVE.
(a) LEAVE REQUIREMENT.—Section 102(a) of the
Family and Medical Leave Act of 1993 (29 U.S.C.
2612(a)) is amended by adding at the end the following:
‘‘(3) ENTITLEMENT
TO
PARENTAL
INVOLVE-
MENT LEAVE.—
‘‘(A) IN
GENERAL.—Subject to section
103(f), an eligible employee shall be entitled to
a total of 4 hours of leave during any 30-day
period, and a total of 24 hours of leave during
any 12-month period, in addition to leave avail-
able under paragraph (1), to participate in or
attend an activity that—
‘‘(i) is sponsored by a school or com-
munity organization; and
‘‘(ii) relates to a program of the
school or organization that is attended by
a son or daughter of the employee, includ-
ing a foster child of the employee.
‘‘(B) DEFINITIONS.—As used in this para-
graph:
‘‘(i) COMMUNITY
ORGANIZATION.—
The term ‘community organization’ means
a private nonprofit organization that is
representative of a community or a signifi-
cant segment of a community and provides
234
activities for individuals described in sub-
paragraph (A) or (B) of section 101(12),
such as a scouting or sports organization.
‘‘(ii) SCHOOL.—The term ‘school’
means an elementary school or secondary
school (as such terms are defined in sec-
tion 14101 of the Elementary and Second-
ary Education Act of 1965 (20 U.S.C.
8801)), a Head Start program assisted
under the Head Start Act (42 U.S.C. 9831
et seq.), and a child care facility licensed
under State law.’’.
(b) SCHEDULE.—Section 102(b)(1) of such Act (29
U.S.C. 2612(b)(1)) is amended by inserting after the sec-
ond sentence the following: ‘‘Leave under subsection
(a)(3) may be taken intermittently or on a reduced leave
schedule.’’.
(c) 
SUBSTITUTION
OF
PAID
LEAVE.—Section
102(d)(2)(A) of such Act (29 U.S.C. 2612(d)(2)(A)) is
amended by inserting before the period the following:
‘‘, or for leave provided under subsection (a)(3) for any
part of the 24-hour period of such leave under such sub-
section’’.
(d) NOTICE.—Section 102(e)(1) of such Act (29
U.S.C. 2612(e)(1)) is amended by adding at the end the
235
following: ‘‘In any case in which an employee requests
leave under subsection (a)(3), the employee shall provide
the employer with not less than 7 days’ notice, before the
date the leave is to begin, of the employee’s intention to
take leave under such subsection.’’.
(e) CERTIFICATION.—Section 103 of such Act (29
U.S.C. 2613) is amended by adding at the end the follow-
ing:
‘‘(f) CERTIFICATION FOR PARENTAL INVOLVEMENT
LEAVE.—An employer may require that a request for
leave under section 102(a)(3) be supported by a certifi-
cation issued at such time and in such manner as the Sec-
retary may by regulation prescribe.’’.
SEC. 35003. PARENTAL INVOLVEMENT LEAVE FOR CIVIL
SERVANTS.
(a) LEAVE REQUIREMENT.—Section 6382(a) of title
5, United States Code, is amended by adding at the end
the following:
‘‘(3)(A) Subject to section 6383(f), an employee shall
be entitled to a total of 4 hours of leave during any 30-
day period, and a total of 24 hours of leave during any
12-month period, in addition to leave available under para-
graph (1), to participate in or attend an activity that—
‘‘(i) is sponsored by a school or community or-
ganization; and
236
‘‘(ii) relates to a program of the school or orga-
nization that is attended by a son or daughter of the
employee, including a foster child of the employee.
‘‘(B) As used in this paragraph:
‘‘(i) The term ‘community organization’ means
a private nonprofit organization that is representa-
tive of a community or a significant segment of a
community and provides activities for individuals de-
scribed in subparagraph (A) or (B) of section
6381(6), such as a scouting or sports organization.
‘‘(ii) The term ‘school’ means an elementary
school or secondary school (as such terms are de-
fined in section 14101 of the Elementary and Sec-
ondary Education Act of 1965 (20 U.S.C. 8801)), a
Head Start program assisted under the Head Start
Act (42 U.S.C. 9831 et seq.), and a child care facil-
ity licensed under State law.’’.
(b) SCHEDULE.—Section 6382(b)(1) of such title is
amended by inserting after the second sentence the follow-
ing: ‘‘Leave under subsection (a)(3) may be taken inter-
mittently or on a reduced leave schedule.’’.
(c) 
SUBSTITUTION
OF
PAID
LEAVE.—Section
6382(d) of such title is amended by inserting before
‘‘, except’’ the following: ‘‘, or for leave provided under
subsection (a)(3) any of the employee’s accrued or accu-
237
mulated annual leave under subchapter I for any part of
the 24-hour period of such leave under such subsection’’.
(d) NOTICE.—Section 6382(e)(1) of such title is
amended by adding at the end the following: ‘‘In any case
in which an employee requests leave under subsection
(a)(3), the employee shall provide the employing agency
with not less than 7 days’ notice, before the date the leave
is to begin, of the employee’s intention to take leave under
such subsection.’’.
(e) CERTIFICATION.—Section 6383 of such title is
amended by adding at the end the following:
‘‘(f) An employing agency may require that a request
for leave under section 6382(a)(3) be supported by a cer-
tification issued at such time and in such manner as the
Office of Personnel Management may by regulation pre-
scribe.’’.
Subtitle F—Tax Incentives for
Family-Friendly Workplaces
SEC. 36001. SMALL BUSINESS FAMILY AND MEDICAL LEAVE
CREDIT.
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 (relating to business related credits) is amended by
adding at the end the following new section:
238
‘‘SEC. 45C. SMALL BUSINESS FAMILY AND MEDICAL LEAVE
CREDIT.
‘‘(a) AMOUNT OF CREDIT.—For purposes of section
38, in the case of an eligible small business employer, the
amount of the small business family and medical leave
credit determined under this section for any taxable year
shall be an amount equal to 50 percent of the qualified
family and medical leave costs paid or incurred by the tax-
payer during such taxable year.
‘‘(b) LIMITATION ON CREDIT.—The credit allowed by
subsection (a) with respect to each employee for qualified
family and medical leave costs paid or incurred by the tax-
payer during the taxable year with respect to such em-
ployee shall not exceed $2,000.
‘‘(c) DEFINITIONS.—For purposes of this section—
‘‘(1) ELIGIBLE SMALL BUSINESS EMPLOYER.—
The term ‘eligible small business employer’ means
any employer who complies with title I of the Family
and Medical Leave Act of 1993 but who is not re-
quired to comply with such title by reason of em-
ploying fewer than 50 employees during the periods
described in section 101(4)(A) of such Act.
‘‘(2) QUALIFIED FAMILY AND MEDICAL LEAVE
COSTS.—The term ‘qualified family and medical
leave costs’ means expenses incurred in connection
239
with complying with title I of the Family and Medi-
cal Leave Act of 1993.
‘‘(d) DENIAL OF DOUBLE BENEFIT.—No deduction
shall be allowed under this chapter for that portion of the
qualified family and medical leave costs otherwise allow-
able as a deduction for the taxable year which is equal
to the amount of the credit determined for such taxable
year under this section.’’
(b) CONFORMING AMENDMENT.—Subsection (b) of
section 38 of such Code is amended by striking ‘‘plus’’
at the end of paragraph (10), by striking the period at
the end of paragraph (11) and inserting ‘‘, plus’’, and by
adding at the end the following new paragraph:
‘‘(12) in the case of an eligible small business
employer (as defined in section 45C(c)), the small
business family and medical leave credit determined
under section 45C.’’
(c) CLERICAL AMENDMENT.—The table of sections
for subpart D of part IV of subchapter A of chapter 1
of such Code is amended by adding at the end the follow-
ing new item:
‘‘Sec. 45C. Small business family and medical leave credit.’’
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to expenses paid or incurred after
the date which is 6 months after the date of the enactment
of this subtitle.
240
SEC. 36002. CREDIT FOR WAGES PAID TO EMPLOYEE WHO
IS ALLOWED TO SHIFT HOURS OF EMPLOY-
MENT OR TO WORK AT HOME IN ORDER TO
REDUCE CHILD CARE NEEDS.
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 (relating to business related credits), as amended by
section 36001, is amended by adding at the end the follow-
ing new section:
‘‘SEC. 45D. WAGES PAID TO EMPLOYEE WHO IS ALLOWED
TO SHIFT HOURS OF EMPLOYMENT OR WORK
AT HOME IN ORDER TO REDUCE CHILD CARE
NEEDS.
‘‘(a) IN GENERAL.—For purposes of section 38, the
amount of the child care-related wage credit determined
under this section for any taxable year shall be an amount
equal to 1⁄3 of the aggregate wages paid or incurred during
such year which are attributable to services performed by
an employee of the taxpayer during the 1-year period be-
ginning on the date the employee first becomes a qualified
employee of the taxpayer.
‘‘(b) QUALIFIED EMPLOYEE.—For purposes of this
section, the term ‘qualified employee’ means any full-time
employee if—
‘‘(1) such employee is permitted by the em-
ployer, solely in order to reduce the amount of de-
241
pendent care services provided (to a dependent of
the employee) outside the employee’s household, to
perform services for the employer—
‘‘(A) at the employee’s home, or
‘‘(B) during a period which is not within
the normal business hours of the employer, and
‘‘(2) as a result of the services performed for
the employer as described in subparagraphs (A) and
(B) of paragraph (1), there is at least a 20 percent
reduction in the amount of time dependent care
services are provided to a dependent of the employee
outside the employee’s household.
‘‘(c) OTHER DEFINITIONS AND SPECIAL RULES.—
For purposes of this section—
‘‘(1) EMPLOYEE
MUST
BE
QUALIFIED
EM-
PLOYEE FOR ENTIRE YEAR.—No credit shall be de-
termined under subsection (a) with respect to any
employee unless such employee is a qualified em-
ployee throughout the 1-year period described in
subsection (a).
‘‘(2) ONLY $6,000 OF WAGES PER YEAR TAKEN
INTO ACCOUNT.—The amount of the wages which
may be taken into account with respect to any em-
ployee shall not exceed $6,000 per year.
242
‘‘(3) WAGES.—The term ‘wages’ has the mean-
ing given such term by section 51(c) (determined
without regard to paragraph (4) thereof).
‘‘(4) CERTAIN RULES TO APPLY.—Rules similar
to the rules of section 52 and subsections (f), (g),
(h), (i), and (k) of section 51 shall apply.’’
(b) CONFORMING AMENDMENT.—Subsection (b) of
section 38 of such Code (relating to current year business
credit), as amended by section 36001(b), is amended by
striking ‘‘plus’’ at the end of paragraph (11), by striking
the period at the end of paragraph (12) and inserting ‘‘,
plus’’, and by adding at the end the following new para-
graph:
‘‘(13) the child care-related wage credit deter-
mined under section 45D(a).’’
(c) CLERICAL AMENDMENT.—The table of sections
for subpart D of part IV of subchapter A of chapter 1
of such Code is amended by adding at the end the follow-
ing new item:
‘‘Sec. 45D. Wages paid to employee who is allowed to shift hours
of employment or work at home in order to reduce
child care needs.’’
(d) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendments made by
this section shall apply to wages paid or incurred
after the date which is 6 months after the date of
the enactment of this subtitle.
243
(2) EMPLOYER PRACTICES BEFORE EFFECTIVE
DATE.—For purposes of section 45D(b)(2) of the
Internal Revenue Code of 1986, as added by this
section, no reduction before the 1st taxable year to
which such section applies shall be taken into ac-
count.
Subtitle G—Parental Equity Leave
SEC. 37001. LEAVE FOR ADOPTED AND FOSTER CHILDREN.
If an employer provides to an employee who is a par-
ent leave, in addition to the leave required by the Family
and Medical Leave Act of 1993, for the birth of a child,
such employer shall provide the same leave to an employee
who is a parent for an adopted child or a foster child.
For purposes of enforcement such additional leave shall
be considered leave required to be provided under section
102 of such Act.
TITLE IV—ECONOMIC SELF-
SUFFICIENCY
Subtitle A—Child Support
Responsibility
SEC. 41001. REFERENCE TO SOCIAL SECURITY ACT.
Except as otherwise specifically provided, wherever in
this subtitle an amendment is expressed in terms of an
amendment to or repeal of a section or other provision,
244
the reference shall be considered to be made to that sec-
tion or other provision of the Social Security Act.
CHAPTER 
1—ELIGIBILITY 
AND 
OTHER
MATTERS CONCERNING TITLE IV–D
PROGRAM CLIENTS
SEC. 41101. STATE OBLIGATION TO PROVIDE PATERNITY
ESTABLISHMENT AND CHILD SUPPORT EN-
FORCEMENT SERVICES.
(a) STATE LAW REQUIREMENTS.—Section 466(a)
(42 U.S.C. 666(a)) is amended by adding at the end the
following new paragraph:
‘‘(12) USE OF CENTRAL CASE REGISTRY AND
CENTRALIZED
COLLECTIONS
UNIT.—Procedures
under which—
‘‘(A) every child support order established
or modified in the State on or after October 1,
1998, is recorded in the central case registry
established in accordance with section 454A(e);
and
‘‘(B) child support payments are collected
through the centralized collections unit estab-
lished in accordance with section 454B—
‘‘(i) on and after October 1, 1998,
under each order subject to wage withhold-
ing under section 466(b); and
245
‘‘(ii) on and after October 1, 1999,
under each other order required to be re-
corded in such central case registry under
this paragraph or section 454A(e), except
as provided in subparagraph (C); and
‘‘(C)(i) parties subject to a child support
order described in subparagraph (B)(ii) may
opt out of the procedure for payment of support
through the centralized collections unit (but not
the procedure for inclusion in the central case
registry) by filing with the State agency a writ-
ten agreement, signed by both parties, to an al-
ternative payment procedure; and
‘‘(ii) an agreement described in clause (i)
becomes void whenever either party advises the
State agency of an intent to vacate the agree-
ment.’’.
(b) STATE PLAN REQUIREMENTS.—Section 454 (42
U.S.C. 654) is amended—
(1) by striking paragraph (4) and inserting the
following:
‘‘(4) provide that such State will undertake—
‘‘(A) to provide appropriate services under
this part to—
246
‘‘(i) each child with respect to whom
an assignment is effective under section
402(a)(26), 471(a)(17), or 1912 (except in
cases where the State agency determines,
in accordance with paragraph (25), that it
is against the best interests of the child to
do so); and
‘‘(ii) each child not described in clause
(i)—
‘‘(I) with respect to whom an in-
dividual applies for such services; and
‘‘(II) (on and after October 1,
1998) each child with respect to
whom a support order is recorded in
the central State case registry estab-
lished under section 454A, regardless
of whether application is made for
services under this part; and
‘‘(B) to enforce the support obligation es-
tablished with respect to the custodial parent of
a child described in subparagraph (A) unless
the parties to the order which establishes the
support obligation have opted, in accordance
with section 466(a)(12)(C), for an alternative
payment procedure.’’; and
247
(2) in paragraph (6)—
(A) by striking subparagraph (A) and in-
serting the following:
‘‘(A) services under the State plan shall be
made available to nonresidents on the same
terms as to residents;’’;
(B) in subparagraph (B)—
(i) by inserting ‘‘on individuals not re-
ceiving assistance under part A’’ after
‘‘such services shall be imposed’’; and
(ii) by inserting ‘‘but no fees or costs
shall be imposed on any absent or custo-
dial parent or other individual for inclusion
in the central State registry maintained
pursuant to section 454A(e)’’; and
(C) in each of subparagraphs (B), (C), and
(D)—
(i) by indenting such subparagraph
and aligning its left margin with the left
margin of subparagraph (A); and
(ii) by striking the final comma and
inserting a semicolon.
(c) CONFORMING AMENDMENTS.—
248
(1) 
Section 
452(g)(2)(A) 
(42 
U.S.C.
652(g)(2)(A)) is amended by striking ‘‘454(6)’’ each
place it appears and inserting ‘‘454(4)(A)(ii)’’.
(2) Section 454(23) (42 U.S.C. 654(23)) is
amended, effective October 1, 1998, by striking ‘‘in-
formation as to any application fees for such services
and’’.
(3) 
Section 
466(a)(3)(B) 
(42 
U.S.C.
666(a)(3)(B)) is amended by striking ‘‘in the case of
overdue support which a State has agreed to collect
under section 454(6)’’ and inserting ‘‘in any other
case’’.
(4) Section 466(e) (42 U.S.C. 666(e)) is
amended by striking ‘‘or (6)’’.
SEC. 41102. DISTRIBUTION OF PAYMENTS.
(a) DISTRIBUTIONS THROUGH STATE CHILD SUP-
PORT ENFORCEMENT AGENCY TO FORMER ASSISTANCE
RECIPIENTS.—Section 454(5) (42 U.S.C. 654(5)) is
amended—
(1) in subparagraph (A)—
(A) by inserting ‘‘except as otherwise spe-
cifically provided in section 464 or 466(a)(3),’’
after ‘‘is effective,’’; and
(B) by striking ‘‘except that’’ and all that
follows through the semicolon; and
249
(2) in subparagraph (B), by striking ‘‘, except’’
and all that follows through ‘‘medical assistance’’.
(b) DISTRIBUTION TO A FAMILY CURRENTLY RE-
CEIVING AFDC.—Section 457 (42 U.S.C. 657) is amend-
ed—
(1) by striking subsection (a) and redesignating
subsection (b) as subsection (a);
(2) in subsection (a), as redesignated—
(A) in the matter preceding paragraph (2),
to read as follows:
‘‘(a) IN
THE
CASE
OF
A
FAMILY
RECEIVING
AFDC.—Amounts collected under this part during any
month as support of a child who is receiving assistance
under part A (or a parent or caretaker relative of such
a child) shall (except in the case of a State exercising the
option under subsection (b)) be distributed as follows:
‘‘(1) an amount equal to the amount that will
be disregarded pursuant to section 402(a)(8)(A)(vi)
shall be taken from each of—
‘‘(A) amounts received in a month which
represent payments for that month; and
‘‘(B) amounts received in a month which
represent payments for a prior month which
were made by the absent parent in the month
when due;
250
and shall be paid to the family without affecting its
eligibility for assistance or decreasing any amount
otherwise payable as assistance to such family dur-
ing such month;’’;
(B) in paragraph (4), by striking ‘‘or (B)’’
and all that follows and inserting ‘‘; then (B)
from any remainder, amounts equal to arrear-
ages of such support obligations assigned, pur-
suant to part A, to any other State or States
shall be paid to such other State or States and
used to pay any such arrearages (with appro-
priate reimbursement of the Federal Govern-
ment to the extent of its participation in the fi-
nancing); and then (C) any remainder shall be
paid to the family.’’.
(3) by inserting after subsection (a), as redesig-
nated, the following new subsection:
‘‘(b) ALTERNATIVE DISTRIBUTION IN CASE OF FAM-
ILY RECEIVING AFDC.—In the case of a State electing
the option under this subsection, amounts collected as de-
scribed in subsection (a) shall be distributed as follows:
‘‘(1) an amount equal to the amount that will
be disregarded pursuant to section 402(a)(8)(A)(vi)
shall be taken from each of—
251
‘‘(A) amounts received in a month which
represent payments for that month; and
‘‘(B) amounts received in a month which
represent payments for a prior month which
were made by the absent parent in the month
when due;
and shall be paid to the family without affecting its
eligibility for assistance or decreasing any amount
otherwise payable as assistance to such family dur-
ing such month;
‘‘(2) second, from any remainder, amounts
equal to the balance of support owed for the current
month shall be paid to the family;
‘‘(3) third, from any remainder, amounts equal
to arrearages of such support obligations assigned,
pursuant to part A, to the State making the collec-
tion shall be retained and used by such State to pay
any such arrearages (with appropriate reimburse-
ment of the Federal Government to the extent of its
participation in the financing);
‘‘(4) fourth, from any remainder, amounts
equal to arrearages of such support obligations as-
signed, pursuant to part A, to any other State or
States shall be paid to such other State or States
and used to pay any such arrearages (with appro-
253
such arrearages (with appropriate reimbursement of
the Federal Government to the extent of its partici-
pation in the financing);
‘‘(4) fourth, from any remainder, amounts
equal to arrearages of such support obligations as-
signed to any other State pursuant to part A shall
be paid to such other State or States, and used to
pay such arrearages, in the order in which such ar-
rearages accrued (with appropriate reimbursement
of the Federal Government to the extent of its par-
ticipation in the financing).’’.
(2) EFFECTIVE DATE.—The amendment made
by paragraph (1) shall take effect on October 1,
1999.
(d) DISTRIBUTION TO A CHILD RECEIVING ASSIST-
ANCE UNDER TITLE IV–E.—Section 457(d) (42 U.S.C.
657(d)) is amended, in the matter preceding paragraph
(1), by striking ‘‘Notwithstanding the preceding provisions
of this section, amounts’’ and inserting the following:
‘‘(d) IN CASE OF A CHILD RECEIVING ASSISTANCE
UNDER TITLE IV–E.—Amounts’’.
(e) REGULATIONS.—The Secretary of Health and
Human Services shall promulgate regulations—
(1) under part D of title IV of the Social Secu-
rity Act, establishing a uniform nationwide standard
254
for allocation of child support collections from an ob-
ligor owing support to more than one family; and
(2) under part A of such title, establishing
standards applicable to States electing the alter-
native formula under section 457(b) of such Act for
distribution of collections on behalf of families re-
ceiving Aid to Families with Dependent Children,
designed to minimize irregular monthly payments to
such families.
(f) CLERICAL AMENDMENT.—Section 454 (42 U.S.C.
654) is amended—
(1) in paragraph (11), by striking ‘‘(11)’’ and
inserting ‘‘(11)(A)’’; and
(2) by redesignating paragraph (12) as sub-
paragraph (B) of paragraph (11).
(g) MANDATORY CHILD SUPPORT PASS-THROUGH.—
(1) IN GENERAL.—Section 402(a)(8)(A)(vi) (42
U.S.C. 602(a)(8)(A)(vi)) is amended—
(A) by striking ‘‘$50’’ each place such
term appears and inserting ‘‘$50, or, if greater,
$50 adjusted by the CPI (as prescribed in sec-
tion 406(i));’’; and
(B) by striking the semicolon at the end
and inserting ‘‘or, in lieu of each dollar amount
specified in this clause, such greater amount as
255
the State may choose (and provide for in its
State plan);’’.
(2) 
CPI 
ADJUSTMENT.—Section 
406 
(42
U.S.C. 606) is amended by adding at the end the
following:
‘‘(i) For purposes of this part, an amount is ‘adjusted
by the CPI’ for any month in a calendar year by multiply-
ing the amount involved by the ratio of—
‘‘(1) the Consumer Price Index (as prepared by
the Department of Labor) for the third quarter of
the preceding calendar year, to
‘‘(2) such Consumer Price Index for the third
quarter of calendar year 1996,
and rounding the product, if not a multiple of $10, to the
nearer multiple of $10.’’.
SEC. 41103. DUE PROCESS RIGHTS.
(a) IN GENERAL.—Section 454 (42 U.S.C. 654), as
amended by section 41102(f) of this subtitle, is amended
by inserting after paragraph (11) the following new para-
graph:
‘‘(12) provide for procedures to ensure that—
‘‘(A) individuals who are applying for or
receiving services under this part, or are parties
to cases in which services are being provided
under this part—
256
‘‘(i) receive notice of all proceedings in
which support obligations might be estab-
lished or modified; and
‘‘(ii) receive a copy of any order estab-
lishing or modifying a child support obliga-
tion, or (in the case of a petition for modi-
fication) a notice of determination that
there should be no change in the amount
of the child support award, within 14 days
after issuance of such order or determina-
tion;
‘‘(B) individuals applying for or receiving
services under this part have access to a fair
hearing that meets standards established by the
Secretary and ensures prompt consideration
and resolution of complaints (but the resort to
such procedure shall not stay the enforcement
of any support order); and
‘‘(C)(i) individuals adversely affected by
the establishment or modification of (or, in the
case of a petition for modification, the deter-
mination that there should be no change in) a
child support order shall be afforded not less
than 30 days after the receipt of the order or
257
determination to initiate proceedings to chal-
lenge such order or determination; and
‘‘(ii) the State may not provide to any non-
custodial parent of a child representation relat-
ing to the establishment or modification of an
order for the payment of child support with re-
spect to that child, unless the State makes pro-
vision for such representation outside the State
agency;’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall become effective on October 1, 1997.
SEC. 41104. PRIVACY SAFEGUARDS.
(a) STATE PLAN REQUIREMENT.—Section 454 (42
U.S.C. 454) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(23);
(2) by striking the period at the end of para-
graph (24) and inserting ‘‘; and’’; and
(3) by adding after paragraph (24) the follow-
ing:
‘‘(25) will have in effect safeguards applicable
to all sensitive and confidential information handled
by the State agency designed to protect the privacy
rights of the parties, including—
258
‘‘(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;
‘‘(B) prohibitions on the release of infor-
mation on the whereabouts of one party to an-
other party against whom a protective order
with respect to the former party has been en-
tered; and
‘‘(C) prohibitions on the release of infor-
mation on the whereabouts of one party to an-
other party if the State has reason to believe
that the release of the information may result
in physical or emotional harm to the former
party.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall become effective on October 1, 1997.
CHAPTER 2—PROGRAM ADMINISTRATION
AND FUNDING
SEC. 41201. FEDERAL MATCHING PAYMENTS.
(a) INCREASED BASE MATCHING RATE.—Section
455(a)(2) (42 U.S.C. 655(a)(2)) is amended to read as
follows:
‘‘(2) The applicable percent for a quarter for
purposes of paragraph (1)(A) is—
259
‘‘(A) for fiscal year 1997, 69 percent,
‘‘(B) for fiscal year 1998, 72 percent, and
‘‘(C) for fiscal year 1999 and succeeding
fiscal years, 75 percent.’’.
(b) MAINTENANCE OF EFFORT.—Section 455 (42
U.S.C. 655) is amended—
(1) in subsection (a)(1), in the matter preced-
ing subparagraph (A), by striking ‘‘From’’ and in-
serting ‘‘Subject to subsection (c), from’’; and
(2) by inserting after subsection (b) the follow-
ing new subsection:
‘‘(c) MAINTENANCE OF EFFORT.—Notwithstanding
the provisions of subsection (a), total expenditures for the
State program under this part for fiscal year 1997 and
each succeeding fiscal year, reduced by the percentage
specified for such fiscal year under subsection (a)(2) (A),
(B), or (C)(i), shall not be less than such total expendi-
tures for fiscal year 1996, reduced by 66 percent.’’.
SEC. 41202. PERFORMANCE-BASED INCENTIVES AND PEN-
ALTIES.
(a) INCENTIVE ADJUSTMENTS TO FEDERAL MATCH-
ING RATE.—Section 458 (42 U.S.C. 658) is amended to
read as follows:
‘‘INCENTIVE ADJUSTMENTS TO MATCHING RATE
‘‘SEC. 458. (a) INCENTIVE ADJUSTMENT.—(1) IN
GENERAL.—In order to encourage and reward State child
261
‘‘(B) LIMITATION.—In setting performance stand-
ards pursuant to subparagraph (A)(i) and adjustment
amounts pursuant to subparagraph (A)(ii), the Secretary
shall ensure that the aggregate number of percentage
point increases as incentive adjustments to all States do
not exceed such aggregate increases as assumed by the
Secretary in estimates of the cost of this section as of
June 1995, unless the aggregate performance of all States
exceeds the projected aggregate performance of all States
in such cost estimates.
‘‘(3) DETERMINATION
OF
INCENTIVE
ADJUST-
MENT.—The Secretary shall determine the amount (if
any) of incentive adjustment due each State on the basis
of the data submitted by the State pursuant to section
454(15)(B) concerning the levels of accomplishment (and
rates of improvement) with respect to performance indica-
tors specified by the Secretary pursuant to this section.
‘‘(4) FISCAL YEAR SUBJECT TO INCENTIVE ADJUST-
MENT.—The total percentage point increase determined
pursuant to this section with respect to a State program
in a fiscal year shall apply as an adjustment to the appli-
cable percent under section 455(a)(2) for payments to
such State for the succeeding fiscal year.
‘‘(5) RECYCLING OF INCENTIVE ADJUSTMENT.—A
State shall expend in the State program under this part
262
all funds paid to the State by the Federal Government
as a result of an incentive adjustment under this section.
‘‘(b) MEANING OF TERMS.—For purposes of this sec-
tion—
‘‘(1) the term ‘Statewide paternity establish-
ment percentage’ means, with respect to a fiscal
year, the ratio (expressed as a percentage) of—
‘‘(A) the total number of out-of-wedlock
children in the State under one year of age for
whom paternity is established or acknowledged
during the fiscal year, to
‘‘(B) the total number of children born out
of wedlock in the State during such fiscal year;
and
‘‘(2) the term ‘overall performance in child sup-
port enforcement’ means a measure or measures of
the effectiveness of the State agency in a fiscal year
which takes into account factors including—
‘‘(A) the percentage of cases requiring a
child support order in which such an order was
established;
‘‘(B) the percentage of cases in which child
support is being paid;
‘‘(C) the ratio of child support collected to
child support due; and
263
‘‘(D) the cost-effectiveness of the State
program, as determined in accordance with
standards established by the Secretary in regu-
lations.’’.
(b) ADJUSTMENT OF PAYMENTS UNDER PART D OF
TITLE IV.—Section 455(a)(2) (42 U.S.C. 655(a)(2)), as
amended by section 41201(a) of this subtitle, is amend-
ed—
(1) by striking the period at the end of sub-
paragraph (C)(ii) and inserting a comma; 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 first
place it appears and inserting ‘‘incentive adjust-
ments’’; and
(2) by striking ‘‘any such incentive payments
made to the State for such period’’ and inserting
‘‘any increases in Federal payments to the State re-
sulting from such incentive adjustments’’.
264
(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 subpara-
graph (A) by inserting ‘‘its overall performance in child
support enforcement is satisfactory (as defined in section
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 preced-
ing clause (i)—
(i) by striking ‘‘paternity establishment
percentage’’ and inserting ‘‘IV–D paternity es-
tablishment percentage’’; and
(ii) by striking ‘‘(or all States, as the case
may be)’’;
(B) in subparagraph (A)(i), by striking ‘‘during
the fiscal year’’;
(C) in 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 striking ‘‘or
(E) as of the end of the fiscal year’’ and inserting
265
‘‘in the fiscal year or, at the option of the State, as
of the end of such year’’;
(E) in subparagraph (A)(iii)—
(i) by striking ‘‘during the fiscal year’’;
and
(ii) by striking ‘‘and’’ at the end; and
(F) in the matter following subparagraph (A)—
(i) by striking ‘‘who were born out of wed-
lock during the immediately preceding fiscal
year’’ and inserting ‘‘born out of wedlock’’;
(ii) by striking ‘‘such preceding fiscal
year’’ both places it appears and inserting ‘‘the
preceding fiscal year’’; and
(iii) by striking ‘‘or (E)’’ the second place
it appears.
(3) Section 452(g)(3) (42 U.S.C. 652(g)(3)) is
amended—
(A) by striking subparagraph (A) and redesig-
nating subparagraphs (B) and (C) as subparagraphs
(A) and (B), respectively;
(B) in subparagraph (A), as redesignated, by
striking ‘‘the percentage of children born out-of-wed-
lock in the State’’ and inserting ‘‘the percentage of
children in the State who are born out of wedlock
or for whom support has not been established’’; and
266
(C) in subparagraph (B), as redesignated—
(i) by inserting ‘‘and overall performance
in child support enforcement’’ after ‘‘paternity
establishment percentages’’; and
(ii) by inserting ‘‘and securing support’’
before the period.
(e) REDUCTION OF PAYMENTS UNDER PART D OF
TITLE IV.—
(1) NEW
REQUIREMENTS.—Section 455 (42
U.S.C. 655) is amended by inserting after sub-
section (b) the following:
‘‘(c)(1) If the Secretary finds, with respect to a State
program under this part in a fiscal year beginning on or
after October 1, 1997—
‘‘(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
267
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) of this paragraph, 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 6 nor more than 8 percent,
or
‘‘(B) not less than 8 nor more than 12 percent,
if the finding is the second consecutive finding made
pursuant to paragraph (1), or
268
‘‘(C) not less than 12 nor more than 15 per-
cent, if the finding is the third or a subsequent con-
secutive such finding.
‘‘(3) For purposes of this subsection, section
402(a)(27), and section 452(a)(4), a State which is deter-
mined as a result of an audit to have submitted incomplete
or unreliable data pursuant to section 454(15)(B), shall
be determined to have submitted adequate data if the Sec-
retary determines that the extent of the incompleteness
or unreliability of the data is of a technical nature which
does not adversely affect the determination of the level of
the State’s performance.’’.
(2) CONFORMING AMENDMENTS.—
(A) Section 403 (42 U.S.C. 603) is amend-
ed by striking subsection (h).
(B) 
Section 
452(a)(4) 
(42 
U.S.C.
652(a)(4)) is amended by striking ‘‘403(h)’’
each place such term appears and inserting
‘‘455(c)’’.
(C) Subsections (d)(3)(A), (g)(1), and
(g)(3)(A) of section 452 (42 U.S.C. 652) are
each amended by striking ‘‘403(h)’’ and insert-
ing ‘‘455(c)’’.
(f) EFFECTIVE DATES.—
269
(1) 
INCENTIVE
ADJUSTMENTS.—(A) 
The
amendments made by subsections (a), (b), and (c)
shall become effective October 1, 1997, except to the
extent provided in subparagraph (B).
(B) Section 458 of the Social Security Act, as
in effect prior to the enactment of this section, shall
be effective for purposes of incentive payments to
States for fiscal years prior to fiscal year 1999.
(2) PENALTY REDUCTIONS.—(A) The amend-
ments made by subsection (d) shall become effective
with respect to calendar quarters beginning on and
after the date of enactment of this subtitle.
(B) The amendments made by subsection (e)
shall become effective with respect to calendar quar-
ters beginning on and after the date one year after
the date of enactment of this subtitle.
SEC. 41203. FEDERAL AND STATE REVIEWS AND AUDITS.
(a) STATE AGENCY ACTIVITIES.—Section 454 (42
U.S.C. 654) is amended—
(1) in paragraph (14), by striking ‘‘(14)’’ and
inserting ‘‘(14)(A)’’;
(2) by redesignating paragraph (15) as sub-
paragraph (B) of paragraph (14); and
(3) by inserting after paragraph (14) the fol-
lowing new paragraph:
270
‘‘(15) provide for—
‘‘(A) a process for annual reviews of and
reports to the Secretary on the State program
under this part, which shall include such infor-
mation as may be necessary to measure State
compliance with Federal requirements for expe-
dited procedures and timely case processing,
using such standards and procedures as are re-
quired by the Secretary, under which the State
agency will determine the extent to which such
program is in conformity with applicable re-
quirements with respect to the operation of
State programs under this part (including the
status of complaints filed under the procedure
required under paragraph (12)(B)); and
‘‘(B) a process of extracting from the
State automated data processing system and
transmitting to the Secretary data and calcula-
tions concerning the levels of accomplishment
(and rates of improvement) with respect to ap-
plicable performance indicators (including IV–D
paternity establishment percentages and overall
performance in child support enforcement) to
the extent necessary for purposes of sections
452(g) and 458.’’.
271
(b) FEDERAL ACTIVITIES.—Section 452(a)(4) (42
U.S.C. 652(a)(4)) is amended to read as follows:
‘‘(4)(A) review data and calculations transmit-
ted 
by 
State 
agencies 
pursuant 
to 
section
454(15)(B) on State program accomplishments with
respect to performance indicators for purposes of
section 452(g) and 458, and determine the amount
(if any) of penalty reductions pursuant to section
455(c) to be applied to the State;
‘‘(B) review annual reports by State agencies
pursuant to section 454(15)(A) on State program
conformity with Federal requirements; evaluate any
elements of a State program in which significant de-
ficiencies are indicated by such report on the status
of complaints under the State procedure under sec-
tion 454(12)(B); and, as appropriate, provide to the
State agency comments, recommendations for addi-
tional or alternative corrective actions, and technical
assistance; and
‘‘(C) conduct audits, in accordance with the
government auditing standards of the United States
Comptroller General—
‘‘(i) at least once every 3 years (or more
frequently, in the case of a State which fails to
meet requirements of this part, or of regula-
272
tions implementing such requirements, concern-
ing performance standards and reliability of
program data) to assess the completeness, reli-
ability, and security of the data, and the accu-
racy of the reporting systems, used for the cal-
culations of performance indicators specified in
subsection (g) and section 458;
‘‘(ii) of the adequacy of financial manage-
ment of the State program, including assess-
ments of—
‘‘(I) whether Federal and other funds
made available to carry out the State pro-
gram under this part are being appro-
priately expended, and are properly and
fully accounted for; and
‘‘(II) whether collections and disburse-
ments of support payments and program
income are carried out correctly and are
properly and fully accounted for; and
‘‘(iii) for such other purposes as the Sec-
retary may find necessary;’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall be effective with respect to calendar
quarters beginning on or after the date one year after en-
actment of this section.
274
SEC. 41205. AUTOMATED DATA PROCESSING REQUIRE-
MENTS.
(a) REVISED REQUIREMENTS.—(1) Section 454(16)
(42 U.S.C. 654(16)) is amended—
(A) by striking ‘‘, at the option of the State,’’;
(B) by inserting ‘‘and operation by the State
agency’’ after ‘‘for the establishment’’;
(C) by inserting ‘‘meeting the requirements of
section 454A’’ after ‘‘information retrieval system’’;
(D) by striking ‘‘in the State and localities
thereof, so as (A)’’ and inserting ‘‘so as’’;
(E) by striking ‘‘(i)’’; and
(F) by striking ‘‘(including’’ and all that follows
and inserting a semicolon.
(2) Part D of title IV (42 U.S.C. 651–669) is amend-
ed by inserting after section 454 the following new section:
‘‘AUTOMATED DATA PROCESSING
‘‘SEC. 454A. (a) IN GENERAL.—In order to meet the
requirements of this section, for purposes of the require-
ment of section 454(16), a State agency shall have in op-
eration a single statewide automated data processing and
information retrieval system which has the capability to
perform the tasks specified in this section, and performs
such tasks with the frequency and in the manner specified
in this part or in regulations or guidelines of the Sec-
retary.
275
‘‘(b) PROGRAM MANAGEMENT.—The automated sys-
tem required under this section shall perform such func-
tions as the Secretary may specify relating to management
of the program under this part, including—
‘‘(1) controlling and accounting for use of Fed-
eral, State, and local funds to carry out such pro-
gram; and
‘‘(2) maintaining the data necessary to meet
Federal reporting requirements on a timely basis.
‘‘(c) CALCULATION
OF
PERFORMANCE
INDICA-
TORS.—In order to enable the Secretary to determine the
incentive and penalty adjustments required by sections
452(g) and 458, the State agency shall—
‘‘(1) use the automated system—
‘‘(A) to maintain the requisite data on
State performance with respect to paternity es-
tablishment and child support enforcement in
the State; and
‘‘(B) to calculate the IV–D paternity es-
tablishment percentage and overall performance
in child support enforcement for the State for
each fiscal year; and
‘‘(2) have in place systems controls to ensure
the completeness, and reliability of, and ready access
to, the data described in paragraph (1)(A), and the
276
accuracy of the calculations described in paragraph
(1)(B).
‘‘(d) INFORMATION INTEGRITY AND SECURITY.—The
State agency shall have in effect safeguards on the integ-
rity, accuracy, and completeness of, access to, and use of
data in the automated system required under this section,
which shall include the following (in addition to such other
safeguards as the Secretary specifies in regulations):
‘‘(1) POLICIES RESTRICTING ACCESS.—Written
policies concerning access to data by State agency
personnel, and sharing of data with other persons,
which—
‘‘(A) permit access to and use of data only
to the extent necessary to carry out program re-
sponsibilities;
‘‘(B) specify the data which may be used
for particular program purposes, and the per-
sonnel permitted access to such data; and
‘‘(C) ensure that data obtained or disclosed
for a limited program purpose is not used or re-
disclosed for another, impermissible purpose.
‘‘(2) SYSTEMS
CONTROLS.—Systems controls
(such as passwords or blocking of fields) to ensure
strict adherence to the policies specified under para-
graph (1).
277
‘‘(3) MONITORING OF ACCESS.—Routine mon-
itoring of access to and use of the automated sys-
tem, through methods such as audit trails and feed-
back mechanisms, to guard against and promptly
identify unauthorized access or use.
‘‘(4) TRAINING AND INFORMATION.—The State
agency shall have in effect procedures to ensure that
all personnel (including State and local agency staff
and contractors) who may have access to or be re-
quired to use sensitive or confidential program data
are fully informed of applicable requirements and
penalties, and are adequately trained in security pro-
cedures.
‘‘(5) PENALTIES.—The State agency shall have
in effect administrative penalties (up to and includ-
ing dismissal from employment) for unauthorized ac-
cess to, or disclosure or use of, confidential data.’’.
(3) REGULATIONS.—Section 452 (42 U.S.C. 652) is
amended by adding at the end the following:
‘‘(j) The Secretary shall prescribe final regulations
for implementation of the requirements of section 454A
not later than 2 years after the date of the enactment of
this subsection.’’.
(4) 
IMPLEMENTATION
TIMETABLE.—Section
454(24) (42 U.S.C. 654(24)), as amended by sections
278
41104(a)(2) and 41204(b)(1) of this subtitle, is amended
to read as follows:
‘‘(24) provide that the State will have in effect
an automated data processing and information re-
trieval system—
‘‘(A) by October 1, 1995, meeting all re-
quirements of this part which were enacted on
or before the date of enactment of the Family
Support Act of 1988; and
‘‘(B) by October 1, 1999, meeting all re-
quirements of this part enacted on or before the
date of enactment of the Economic Equity Act
of 1996 (but this provision shall not be con-
strued to alter earlier deadlines specified for
elements of such system), except that such
deadline shall be extended by 1 day for each
day (if any) by which the Secretary fails to
meet the deadline imposed by section 452(j);’’.
(b) SPECIAL FEDERAL MATCHING RATE FOR DE-
VELOPMENT COSTS OF AUTOMATED SYSTEMS.—Section
455(a) (42 U.S.C. 655(a)) is amended—
(1) in paragraph (1)(B)—
(A) by striking ‘‘90 percent’’ and inserting
‘‘the percent specified in paragraph (3)’’;
(B) by striking ‘‘so much of’’; and
279
(C) by striking ‘‘which the Secretary’’ and
all that follows and inserting ‘‘, and’’; and
(2) by adding at the end the following new
paragraph:
‘‘(3)(A) The Secretary shall pay to each State, for
each quarter in fiscal year 1996, 90 percent of so much
of State expenditures described in subparagraph (1)(B) as
the Secretary finds are for a system meeting the require-
ments specified in section 454(16), or meeting such re-
quirements without regard to clause (D) thereof.
‘‘(B)(i) The Secretary shall pay to each State, for
each quarter in fiscal years 1997 through 2001, the per-
centage specified in clause (ii) of so much of State expend-
itures described in subparagraph (1)(B) as the Secretary
finds are for a system meeting the requirements specified
in section 454(16) and 454A, subject to clause (iii).
‘‘(ii) The percentage specified in this clause, for pur-
poses of clause (i), is the higher of—
‘‘(I) 80 percent, or
‘‘(II) the percentage otherwise applicable to
Federal payments to the State under subparagraph
(A) (as adjusted pursuant to section 458).’’.
(c) CONFORMING AMENDMENT.—Section 123(c) of
the Family Support Act of 1988 (102 Stat. 2352; Public
Law 100–485) is repealed.
280
(d) ADDITIONAL PROVISIONS.—For additional provi-
sions of section 454A, as added by subsection (a) of this
section, see the amendments made by sections 121,
122(c), and 133(d) of this subtitle.
SEC. 41206. DIRECTOR OF CSE PROGRAM; STAFFING STUDY.
(a) REPORTING TO SECRETARY.—Section 452(a) (42
U.S.C. 652(a)) is amended in the matter preceding para-
graph (1) by striking ‘‘directly’’.
(b) STAFFING STUDIES.—
(1) SCOPE.—The Secretary of Health and
Human Services shall, directly or by contract, con-
duct studies of the staffing of each State child sup-
port enforcement program under part D of title IV
of the Social Security Act. Such studies shall include
a review of the staffing needs created by require-
ments for automated data processing, maintenance
of a central case registry and centralized collections
of child support, and of changes in these needs re-
sulting from changes in such requirements. Such
studies shall examine and report on effective staffing
practices used by the States and on recommended
staffing procedures.
(2) FREQUENCY OF STUDIES.—The Secretary
shall complete the first staffing study required under
paragraph (1) by October 1, 1997, and may conduct
281
additional studies subsequently at appropriate inter-
vals.
(3) REPORT
TO
THE
CONGRESS.—The Sec-
retary shall submit a report to the Congress stating
the findings and conclusions of each study conducted
under this subsection.
SEC. 41207. FUNDING FOR SECRETARIAL ASSISTANCE TO
STATE PROGRAMS.
Section 452 (42 U.S.C. 652), as amended by section
41205(a)(3) of this subtitle, is amended by adding at the
end the following new subsection:
‘‘(k) FUNDING FOR FEDERAL ACTIVITIES ASSISTING
STATE PROGRAMS.—(1) There shall be available to the
Secretary, from amounts appropriated for fiscal year 1996
and each succeeding fiscal year for payments to States
under this part, the amount specified in paragraph (2) for
the costs to the Secretary for—
‘‘(A) information dissemination and technical
assistance to States, training of State and Federal
staff, staffing studies, and related activities needed
to improve programs (including technical assistance
concerning State automated systems);
‘‘(B) research, demonstration, and special
projects of regional or national significance relating
282
to the operation of State programs under this part;
and
‘‘(C) operation of the Federal Parent Locator
Service under section 453, to the extent such costs
are not recovered through user fees.
‘‘(2) The amount specified in this paragraph for a
fiscal year is the amount equal to a percentage of the re-
duction in Federal payments to States under part A on
account of child support (including arrearages) collected
in the preceding fiscal year on behalf of children receiving
aid under such part A in such preceding fiscal year (as
determined on the basis of the most recent reliable data
available to the Secretary as of the end of the third cal-
endar quarter following the end of such preceding fiscal
year), equal to—
‘‘(A) 1 percent, for the activities specified in
subparagraphs (A) and (B) of paragraph (1); and
‘‘(B) 2 percent, for the activities specified in
subparagraph (C) of paragraph (1).’’.
SEC. 41208. REPORTS AND DATA COLLECTION BY THE SEC-
RETARY.
(a) ANNUAL REPORT TO CONGRESS.—(1) Section
452(a)(10)(A) (42 U.S.C. 652(a)(10)(A)) is amended—
(A) by striking ‘‘this part;’’ and inserting ‘‘this
part, including—’’; and
283
(B) by adding at the end the following indented
clauses:
‘‘(i) the total amount of child support
payments collected as a result of services
furnished during such fiscal year to indi-
viduals receiving services under this part;
‘‘(ii) the cost to the States and to the
Federal Government of furnishing such
services to those individuals; and
‘‘(iii) the number of cases involving
families—
‘‘(I) who became ineligible for aid
under part A during a month in such
fiscal year; and
‘‘(II) with respect to whom a
child support payment was received in
the same month;’’.
(2) Section 452(a)(10)(C) (42 U.S.C. 652(a)(10)(C))
is amended—
(A) in the matter preceding clause (i)—
(i) by striking ‘‘with the data required
under each clause being separately stated for
cases’’ and inserting ‘‘separately stated for (1)
cases’’;
284
(ii) by striking ‘‘cases where the child was
formerly receiving’’ and inserting ‘‘or formerly
received’’;
(iii) 
by 
inserting 
‘‘or 
1912’’ 
after
‘‘471(a)(17)’’; and
(iv) by inserting ‘‘(2)’’ before ‘‘all other’’;
(B) in each of clauses (i) and (ii), by striking
‘‘, and the total amount of such obligations’’;
(C) in clause (iii), by striking ‘‘described in’’
and all that follows and inserting ‘‘in which support
was collected during the fiscal year;’’;
(D) by striking clause (iv); and
(E) by redesignating clause (v) as clause (vii),
and inserting after clause (iii) the following new
clauses:
‘‘(iv) the total amount of support col-
lected during such fiscal year and distrib-
uted as current support;
‘‘(v) the total amount of support col-
lected during such fiscal year and distrib-
uted as arrearages;
‘‘(vi) the total amount of support due
and unpaid for all fiscal years; and’’.
285
(3) Section 452(a)(10)(G) (42 U.S.C. 652(a)(10)(G))
is amended by striking ‘‘on the use of Federal courts
and’’.
(4) Section 452(a)(10) (42 U.S.C. 652(a)(10)) is
amended by striking all that follows subparagraph (I).
(b) DATA COLLECTION AND REPORTING.—Section
469 (42 U.S.C. 669) is amended—
(1) by striking subsections (a) and (b) and in-
serting the following:
‘‘(a) The Secretary shall collect and maintain, on a
fiscal year basis, up-to-date statistics, by State, with re-
spect to services to establish paternity and services to es-
tablish child support obligations, the data specified in sub-
section (b), separately stated, in the case of each such
service, with respect to—
‘‘(1) families (or dependent children) receiving
aid under plans approved under part A (or E); and
‘‘(2) families not receiving such aid.
‘‘(b) The data referred to in subsection (a) are—
‘‘(1) the number of cases in the caseload of the
State agency administering the plan under this part
in which such service is needed; and
‘‘(2) the number of such cases in which the
service has been provided.’’; and
286
(2) in subsection (c), by striking ‘‘(a)(2)’’ and
inserting ‘‘(b)(2)’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall be effective with respect to fiscal year
1996 and succeeding fiscal years.
CHAPTER 3—LOCATE AND CASE
TRACKING
SEC. 41301. CENTRAL STATE AND CASE REGISTRY.
Section 454A, as added by section 41205(a)(2) of
this subtitle, is amended by adding at the end the follow-
ing:
‘‘(e) CENTRAL
CASE
REGISTRY.—(1) IN
GEN-
ERAL.—The automated system required under this section
shall perform the functions, in accordance with the provi-
sions of this subsection, of a single central registry con-
taining records with respect to each case in which services
are being provided by the State agency (including, on and
after October 1, 1998, each order specified in section
466(a)(12)), using such standardized data elements (such
as names, social security numbers or other uniform identi-
fication numbers, dates of birth, and case identification
numbers), and containing such other information (such as
information on case status) as the Secretary may require.
‘‘(2) PAYMENT RECORDS.—Each case record in the
central registry shall include a record of—
287
‘‘(A) the amount of monthly (or other periodic)
support owed under the support order, and other
amounts due or overdue (including arrears, interest
or late payment penalties, and fees);
‘‘(B) the date on which or circumstances under
which the support obligation will terminate under
such order;
‘‘(C) all child support and related amounts col-
lected (including such amounts as fees, late payment
penalties, and interest on arrearages);
‘‘(D) the distribution of such amounts collected;
and
‘‘(E) the birth date of the child for whom the
child support order is entered.
‘‘(3) UPDATING AND MONITORING.—The State agen-
cy shall promptly establish and maintain, and regularly
monitor, case records in the registry required by this sub-
section, on the basis of—
‘‘(A) information on administrative actions and
administrative and judicial proceedings and orders
relating to paternity and support;
‘‘(B) information obtained from matches with
Federal, State, or local data sources;
‘‘(C) information on support collections and dis-
tributions; and
288
‘‘(D) any other relevant information.
‘‘(f) DATA MATCHES AND OTHER DISCLOSURES OF
INFORMATION.—The automated system required under
this section shall have the capacity, and be used by the
State agency, to extract data at such times, and in such
standardized format or formats, as may be required by
the Secretary, and to share and match data with, and re-
ceive data from, other data bases and data matching serv-
ices, in order to obtain (or provide) information necessary
to enable the State agency (or Secretary or other State
or Federal agencies) to carry out responsibilities under
this part. Data matching activities of the State agency
shall include at least the following:
‘‘(1) DATA
BANK
OF
CHILD
SUPPORT
OR-
DERS.—Furnish to the Data Bank of Child Support
Orders established under section 453(h) (and update
as necessary, with information including notice of
expiration of orders) minimal information (to be
specified by the Secretary) on each child support
case in the central case registry.
‘‘(2) FEDERAL
PARENT
LOCATOR
SERVICE.—
Exchange data with the Federal Parent Locator
Service for the purposes specified in section 453.
‘‘(3) AFDC AND
MEDICAID
AGENCIES.—Ex-
change data with State agencies (of the State and
289
of other States) administering the programs under
part A and title XIX, as necessary for the perform-
ance of State agency responsibilities under this part
and under such programs.
‘‘(4) 
INTRA- 
AND
INTERSTATE
DATA
MATCHES.—Exchange data with other agencies of
the State, agencies of other States, and interstate
information networks, as necessary and appropriate
to carry out (or assist other States to carry out) the
purposes of this part.’’.
SEC. 41302. CENTRALIZED COLLECTION AND DISBURSE-
MENT OF SUPPORT PAYMENTS.
(a) STATE PLAN REQUIREMENT.—Section 454 (42
U.S.C. 654), as amended by sections 41104(a) and
41204(b) of this subtitle, 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 adding after paragraph (26) the follow-
ing new paragraph:
‘‘(27) provide that the State agency, on and
after October 1, 1998—
‘‘(A) will operate a centralized, automated
unit for the collection and disbursement of child
290
support under orders being enforced under this
part, in accordance with section 454B; and
‘‘(B) will have sufficient State staff (con-
sisting of State employees), and (at State op-
tion) contractors reporting directly to the State
agency to monitor and enforce support collec-
tions through such centralized unit, including
carrying out the automated data processing re-
sponsibilities specified in section 454A(g) and
to impose, as appropriate in particular cases,
the administrative enforcement remedies speci-
fied in section 466(c)(1).’’.
(b) ESTABLISHMENT OF CENTRALIZED COLLECTION
UNIT.—Part D of title IV (42 U.S.C. 651–669) is amend-
ed by adding after section 454A the following new section:
‘‘CENTRALIZED COLLECTION AND DISBURSEMENT OF
SUPPORT PAYMENTS
‘‘SEC. 454B. (a) IN GENERAL.—In order to meet the
requirement of section 454(27), the State agency must op-
erate a single centralized, automated unit for the collection
and disbursement of support payments, coordinated with
the automated data system required under section 454A,
in accordance with the provisions of this section, which
shall be—
‘‘(1) operated directly by the State agency (or
by two or more State agencies under a regional co-
291
operative agreement), or by a single contractor re-
sponsible directly to the State agency; and
‘‘(2) used for the collection and disbursement
(including interstate collection and disbursement) of
payments under support orders in all cases being en-
forced by the State pursuant to section 454(4).
‘‘(b) REQUIRED PROCEDURES.—The centralized col-
lections unit shall use automated procedures, electronic
processes, and computer-driven technology to the maxi-
mum extent feasible, efficient, and economical, for the col-
lection and disbursement of support payments, including
procedures—
‘‘(1) for receipt of payments from parents, em-
ployers, and other States, and for disbursements to
custodial parents and other obligees, the State agen-
cy, and the State agencies of other States;
‘‘(2) for accurate identification of payments;
‘‘(3) to ensure prompt disbursement of the cus-
todial parent’s share of any payment; and
‘‘(4) to furnish to either parent, upon request,
timely information on the current status of support
payments.’’.
(c) USE OF AUTOMATED SYSTEM.—Section 454A, as
added by section 41205(a)(2) of this subtitle and as
292
amended by section 41301 of this subtitle, is amended by
adding at the end the following new subsection:
‘‘(g) CENTRALIZED COLLECTION AND DISTRIBUTION
OF SUPPORT PAYMENTS.—The automated system re-
quired under this section shall be used, to the maximum
extent feasible, to assist and facilitate collections and dis-
bursement of support payments through the centralized
collections unit operated pursuant to section 454B,
through the performance of functions including at a mini-
mum—
‘‘(1) generation of orders and notices to em-
ployers (and other debtors) for the withholding of
wages (and other income)—
‘‘(A) within two working days after receipt
(from the directory of New Hires established
under section 453(i) or any other source) of no-
tice of and the income source subject to such
withholding; and
‘‘(B) using uniform formats directed by
the Secretary;
‘‘(2) ongoing monitoring to promptly identify
failures to make timely payment; and
‘‘(3) automatic use of enforcement mechanisms
(including mechanisms authorized pursuant to sec-
tion 466(c)) where payments are not timely made.’’.
293
(d) EFFECTIVE DATE.—The amendments made by
this section shall become effective on October 1, 1998.
SEC. 41303. AMENDMENTS CONCERNING INCOME WITH-
HOLDING.
(a) MANDATORY INCOME WITHHOLDING.—(1) Sec-
tion 466(a)(1) (42 U.S.C. 666(a)(1)) is amended to read
as follows:
‘‘(1) INCOME WITHHOLDING.—(A) UNDER OR-
DERS ENFORCED UNDER THE STATE PLAN.—Proce-
dures described in subsection (b) for the withholding
from income of amounts payable as support in cases
subject to enforcement under the State plan.
‘‘(B) UNDER
CERTAIN
ORDERS
PREDATING
CHANGE
IN
REQUIREMENT.—Procedures 
under
which all child support orders issued (or modified)
before October 1, 1996, and which are not otherwise
subject to withholding under subsection (b), shall be-
come subject to withholding from wages as provided
in subsection (b) if arrearages occur, without the
need for a judicial or administrative hearing.’’.
(2) Section 466(a)(8) (42 U.S.C. 666(a)(8)) is re-
pealed.
(3) Section 466(b) (42 U.S.C. 666(b)) is amended—
294
(A) in the matter preceding paragraph (1), by
striking ‘‘subsection (a)(1)’’ and inserting ‘‘sub-
section (a)(1)(A)’’;
(B) in paragraph (5), by striking all that fol-
lows ‘‘administered by’’ and inserting ‘‘the State
through the centralized collections unit established
pursuant to section 454B, in accordance with the re-
quirements of such section 454B.’’;
(C) in paragraph (6)(A)(i)—
(i) by inserting ‘‘, in accordance with time-
tables established by the Secretary,’’ after
‘‘must be required’’; and
(ii) by striking ‘‘to the appropriate agency’’
and all that follows and inserting ‘‘to the State
centralized collections unit within 5 working
days after the date such amount would (but for
this subsection) have been paid or credited to
the employee, for distribution in accordance
with this part.’’;
(D) in paragraph (6)(A)(ii), by inserting ‘‘be in
a standard format prescribed by the Secretary, and’’
after ‘‘shall’’; and
(E) in paragraph (6)(D)—
(i) by striking ‘‘employer who discharges’’
and inserting ‘‘employer who—(A) discharges’’;
295
(ii) by relocating subparagraph (A), as des-
ignated, as an indented subparagraph after and
below the introductory matter;
(iii) by striking the period at the end; and
(iv) by adding after and below subpara-
graph (A) the following new subparagraph:
‘‘(B) fails to withhold support from wages,
or to pay such amounts to the State centralized
collections unit in accordance with this sub-
section.’’.
(b) CONFORMING AMENDMENT.—Section 466(c) (42
U.S.C. 666(c)) is repealed.
(c) DEFINITION
OF TERMS.—The Secretary shall
promulgate regulations providing definitions, for purposes
of part D of title IV of the Social Security Act, for the
term ‘‘income’’ and for such other terms relating to in-
come withholding under section 466(b) of such Act as the
Secretary may find it necessary or advisable to define.
SEC. 41304. LOCATOR INFORMATION FROM INTERSTATE
NETWORKS.
Section 466(a) (42 U.S.C. 666(a)), as amended by
section 41303(a)(2) of this subtitle, is amended by insert-
ing after paragraph (7) the following new paragraph:
‘‘(8) LOCATOR
INFORMATION
FROM
INTER-
STATE
NETWORKS.—Procedures ensuring that the
296
State will neither provide funding for, nor use for
any purpose (including any purpose unrelated to the
purposes of this part), any automated interstate net-
work or system used to locate individuals—
‘‘(A) for purposes relating to the use of
motor vehicles; or
‘‘(B) providing information for law en-
forcement purposes (where child support en-
forcement agencies are otherwise allowed access
by State and Federal law),
unless all Federal and State agencies administering
programs under this part (including the entities es-
tablished under section 453) have access to informa-
tion in such system or network to the same extent
as any other user of such system or network.’’.
SEC. 41305. EXPANDED FEDERAL PARENT LOCATOR SERV-
ICE.
(a) EXPANDED AUTHORITY TO LOCATE INDIVID-
UALS
AND ASSETS.—Section 453 (42 U.S.C. 653) is
amended—
(1) in subsection (a), by striking all that follows
‘‘subsection (c))’’ and inserting the following:
‘‘, for the purpose of establishing parentage, establishing,
setting the amount of, modifying, or enforcing child sup-
port obligations—
297
‘‘(1) information on, or facilitating the discov-
ery of, the location of any individual—
‘‘(A) who is under an obligation to pay
child support;
‘‘(B) against whom such an obligation is
sought; or
‘‘(C) to whom such an obligation is owed,
including such individual’s social security num-
ber (or numbers), most recent residential ad-
dress, and the name, address, and employer
identification number of such individual’s em-
ployer; and
‘‘(2) information on the individual’s wages (or
other income) from, and benefits of, employment (in-
cluding rights to or enrollment in group health care
coverage); and
‘‘(3) information on the type, status, location,
and amount of any assets of, or debts owed by or
to, any such individual.’’; and
(2) in subsection (b)—
(A) in the matter preceding paragraph (1),
by striking ‘‘social security’’ and all that follows
through ‘‘absent parent’’ and inserting ‘‘infor-
mation specified in subsection (a)’’; and
298
(B) in paragraph (2), by inserting before
the period ‘‘, or from any consumer reporting
agency (as defined in section 603(f) of the Fair
Credit Reporting Act (15 U.S.C. 1681a(f))’’;
(3) in subsection (e)(1), by inserting before the
period ‘‘, or by consumer reporting agencies’’.
(b) REIMBURSEMENT FOR DATA FROM FEDERAL
AGENCIES.—Section 453(e)(2) (42 U.S.C. 653(e)(2)) is
amended in the fourth sentence by inserting before the
period ‘‘in an amount which the Secretary determines to
be reasonable payment for the data exchange (which
amount shall not include payment for the costs of obtain-
ing, compiling, or maintaining the data)’’.
(c) ACCESS TO CONSUMER REPORTS UNDER FAIR
CREDIT REPORTING ACT.—(1) Section 608 of the Fair
Credit Reporting Act (15 U.S.C. 1681f) is amended—
(A) by striking ‘‘, limited to’’ and inserting ‘‘to
a 
governmental 
agency 
(including 
the 
entire
consumer report, in the case of a Federal, State, or
local agency administering a program under part D
of title IV of the Social Security Act, and limited
to’’; and
(B) by striking ‘‘employment, to a govern-
mental agency’’ and inserting ‘‘employment, in the
case of any other governmental agency)’’.
299
(2) REIMBURSEMENT
FOR
REPORTS
BY
STATE
AGENCIES
AND CREDIT BUREAUS.—Section 453 (42
U.S.C. 653) is amended by adding at the end the following
new subsection:
‘‘(g) The Secretary is authorized to reimburse costs
to State agencies and consumer credit reporting agencies
the costs incurred by such entities in furnishing informa-
tion requested by the Secretary pursuant to this section
in an amount which the Secretary determines to be rea-
sonable payment for the data exchange (which amount
shall not include payment for the costs of obtaining, com-
piling, or maintaining the data).’’.
(d) DISCLOSURE OF TAX RETURN INFORMATION.—
(1) Section 6103(1)(6)(A)(ii) of the Internal Revenue
Code of 1986 is amended by striking ‘‘, but only if’’ and
all that follows and inserting a period.
(2) Section 6103(1)(8)(A) of the Internal Revenue
Code of 1986 is amended by inserting ‘‘Federal,’’ before
‘‘State or local’’.
(e) TECHNICAL AMENDMENTS.—
(1) Sections 452(a)(9), 453(a), 453(b), 463(a),
and 463(e) (42 U.S.C. 652(a)(9), 653(a), 653(b),
663(a), and 663(e)) are each amended by inserting
‘‘Federal’’ before ‘‘Parent’’ each place it appears.
300
(2) Section 453 (42 U.S.C. 653) is amended in
the heading by adding ‘‘FEDERAL’’ before ‘‘PAR-
ENT’’.
(f) NEW COMPONENTS.—Section 453 (42 U.S.C.
653), as amended by subsection (c)(2) of this section, is
amended by adding at the end the following:
‘‘(h) DATA BANK OF CHILD SUPPORT ORDERS.—
‘‘(1) IN GENERAL.—Not later than October 1,
1998, in order to assist States in administering their
State plans under this part and parts A, F, and G,
and for the other purposes specified in this section,
the Secretary shall establish and maintain in the
Federal Parent Locator Service an automated reg-
istry to be known as the Data Bank of Child Sup-
port Orders, which shall contain abstracts of child
support orders and other information described in
paragraph (2) on each case in each State central
case registry maintained pursuant to section
454A(e), as furnished (and regularly updated), pur-
suant to section 454A(f), by State agencies admin-
istering programs under this part.
‘‘(2) CASE INFORMATION.—The information re-
ferred to in paragraph (1), as specified by the Sec-
retary, shall include sufficient information (including
names, social security numbers or other uniform
301
identification numbers, and State case identification
numbers) to identify the individuals who owe or are
owed support (or with respect to or on behalf of
whom support obligations are sought to be estab-
lished), and the State or States which have estab-
lished or modified, or are enforcing or seeking to es-
tablish, such an order.
‘‘(i) DIRECTORY OF NEW HIRES.—
‘‘(1) IN GENERAL.—Not later than October 1,
1998, in order to assist States in administering their
State plans under this part and parts A, F, and G,
and for the other purposes specified in this section,
the Secretary shall establish and maintain in the
Federal Parent Locator Service an automated direc-
tory to be known as the directory of New Hires, con-
taining—
‘‘(A) information supplied by employers on
each newly hired individual, in accordance with
paragraph (2); and
‘‘(B) information supplied by State agen-
cies administering State unemployment com-
pensation laws, in accordance with paragraph
(3).
‘‘(2) EMPLOYER INFORMATION.—
302
‘‘(A) INFORMATION
REQUIRED.—Subject
to subparagraph (D), each employer shall fur-
nish to the Secretary, for inclusion in the direc-
tory established under this subsection, not later
than 10 days after the date (on or after Octo-
ber 1, 1998) on which the employer hires a new
employee (as defined in subparagraph (C)), a
report containing the name, date of birth, and
social security number of such employee, and
the employer identification number of the em-
ployer.
‘‘(B) REPORTING
METHOD
AND
FOR-
MAT.—The Secretary shall provide for trans-
mission of the reports required under subpara-
graph (A) using formats and methods which
minimize the burden on employers, which shall
include—
‘‘(i) automated or electronic trans-
mission of such reports;
‘‘(ii) transmission by regular mail;
and
‘‘(iii) transmission of a copy of the
form required for purposes of compliance
with section 3402 of the Internal Revenue
Code of 1986.
303
‘‘(C) EMPLOYEE DEFINED.—For purposes
of this paragraph, the term ‘employee’ means
any individual subject to the requirement of
section 3402(f)(2) of the Internal Revenue Code
of 1986.
‘‘(D) PAPERWORK
REDUCTION
REQUIRE-
MENT.—As required by the information re-
sources management policies published by the
Director of the Office of Management and
Budget pursuant to section 3504(b)(1) of title
44, United States Code, the Secretary, in order
to minimize the cost and reporting burden on
employers, shall not require reporting pursuant
to this paragraph if an alternative reporting
mechanism can be developed that either relies
on existing Federal or State reporting or en-
ables the Secretary to collect the needed infor-
mation in a more cost-effective and equally ex-
peditious manner, taking into account the re-
porting costs on employers.
‘‘(E) CIVIL
MONEY
PENALTY
ON
NON-
COMPLYING
EMPLOYERS.—(i) Any employer
that fails to make a timely report in accordance
with this paragraph with respect to an individ-
ual shall be subject to a civil money penalty, for
304
each calendar year in which the failure occurs,
of the lesser of $500 or 1 percent of the wages
or other compensation paid by such employer to
such individual during such calendar year.
‘‘(ii) Subject to clause (iii), the provisions
of section 1128A (other than subsections (a)
and (b) thereof) shall apply to a civil money
penalty under clause (i) in the same manner as
they apply to a civil money penalty or proceed-
ing under section 1128A(a).
‘‘(iii) Any employer with respect to whom
a penalty under this subparagraph is upheld
after an administrative hearing shall be liable to
pay all costs of the Secretary with respect to
such hearing.
‘‘(3) EMPLOYMENT SECURITY INFORMATION.—
‘‘(A) REPORTING
REQUIREMENT.—Each
State agency administering a State unemploy-
ment compensation law approved by the Sec-
retary of Labor under the Federal Unemploy-
ment Tax Act shall furnish to the Secretary of
Health and Human Services extracts of the re-
ports to the Secretary of Labor concerning the
wages and unemployment compensation paid to
305
individuals required under section 303(a)(6), in
accordance with subparagraph (B).
‘‘(B) MANNER OF COMPLIANCE.—The ex-
tracts required under subparagraph (A) shall be
furnished to the Secretary of Health and
Human Services on a quarterly basis, with re-
spect to calendar quarters beginning on and
after October 1, 1996, by such dates, in such
format, and containing such information as re-
quired by that Secretary in regulations.
‘‘(j) DATA MATCHES AND OTHER DISCLOSURES.—
‘‘(1) VERIFICATION BY SOCIAL SECURITY AD-
MINISTRATION.—(A) The Secretary shall transmit
data on individuals and employers maintained under
this section to the Social Security Administration to
the extent necessary for verification in accordance
with subparagraph (B).
‘‘(B) The Social Security Administration shall
verify the accuracy of, correct or supply to the ex-
tent necessary and feasible, and report to the Sec-
retary, the following information in data supplied by
the Secretary pursuant to subparagraph (A):
‘‘(i) the name, social security number, and
birth date of each individual; and
306
‘‘(ii) the employer identification number of
each employer.
‘‘(2) CHILD SUPPORT LOCATOR MATCHES.—For
the purpose of locating individuals for purposes of
paternity establishment and establishment and en-
forcement of child support, the Secretary shall—
‘‘(A) match data in the directory of New
Hires against the child support order abstracts
in the Data Bank of Child Support Orders not
less often than every 2 working days; and
‘‘(B) report information obtained from
such a match to concerned State agencies oper-
ating programs under this part not later than
2 working days after such match.
‘‘(3) DATA
MATCHES
AND
DISCLOSURES
OF
DATA IN ALL REGISTRIES FOR TITLE IV PROGRAM
PURPOSES.—The Secretary shall—
‘‘(A) perform matches of data in each com-
ponent of the Federal Parent Locator Service
maintained under this section against data in
each other such component (other than the
matches required pursuant to paragraph (1)),
and report information resulting from such
matches to State agencies operating programs
under this part and parts A, F, and G; and
307
‘‘(B) disclose data in such registries to
such State agencies,
to the extent, and with the frequency, that the Sec-
retary determines to be effective in assisting such
States to carry out their responsibilities under such
programs.
‘‘(k) FEES.—
‘‘(1) FOR SSA VERIFICATION.—The Secretary
shall reimburse the Commissioner of Social Security,
at a rate negotiated between the Secretary and the
Commissioner, the costs incurred by the Commis-
sioner in performing the verification services speci-
fied in subsection (j).
‘‘(2) FOR
INFORMATION
FROM
SESAS.—The
Secretary shall reimburse costs incurred by State
employment security agencies in furnishing data as
required by subsection (j)(3), at rates which the Sec-
retary determines to be reasonable (which rates shall
not include payment for the costs of obtaining, com-
piling, or maintaining such data).
‘‘(3) FOR INFORMATION FURNISHED TO STATE
AND FEDERAL AGENCIES.—State and Federal agen-
cies receiving data or information from the Secretary
pursuant to this section shall reimburse the costs in-
curred by the Secretary in furnishing such data or
308
information, at rates which the Secretary determines
to be reasonable (which rates shall include payment
for the costs of obtaining, verifying, maintaining,
and matching such data or information).
‘‘(l) RESTRICTION ON DISCLOSURE AND USE.—Data
in the Federal Parent Locator Service, and information
resulting from matches using such data, shall not be used
or disclosed except as specifically provided in this section.
‘‘(m) RETENTION OF DATA.—Data in the Federal
Parent Locator Service, and data resulting from matches
performed pursuant to this section, shall be retained for
such period (determined by the Secretary) as appropriate
for the data uses specified in this section.
‘‘(n) INFORMATION INTEGRITY AND SECURITY.—The
Secretary shall establish and implement safeguards with
respect to the entities established under this section de-
signed to—
‘‘(1) ensure the accuracy and completeness of
information in the Federal Parent Locator Service;
and
‘‘(2) restrict access to confidential information
in the Federal Parent Locator Service to authorized
persons, and restrict use of such information to au-
thorized purposes.
309
‘‘(o) LIMIT ON LIABILITY.—The Secretary shall not
be liable to either a State or an individual for inaccurate
information provided to a component of the Federal Par-
ent Locator Service section and disclosed by the Secretary
in accordance with this section.’’.
(g) CONFORMING AMENDMENTS.—
(1) TO PART D OF TITLE IV OF THE SOCIAL SE-
CURITY
ACT.—Section 
454(8)(B) 
(42 
U.S.C.
654(8)(B)) is amended to read as follows:
‘‘(B) the Federal Parent Locator Service
established under section 453;’’.
(2) TO FEDERAL UNEMPLOYMENT TAX ACT.—
Section 3304(16) of the Internal Revenue Code of
1986 is amended—
(A) by striking ‘‘Secretary of Health, Edu-
cation, and Welfare’’ each place such term ap-
pears and inserting ‘‘Secretary of Health and
Human Services’’;
(B) in subparagraph (B), by striking
‘‘such information’’ and all that follows and in-
serting ‘‘information furnished under subpara-
graph (A) or (B) is used only for the purposes
authorized under such subparagraph;’’;
(C) by striking ‘‘and’’ at the end of sub-
paragraph (A);
310
(D) by redesignating subparagraph (B) as
subparagraph (C); and
(E) by inserting after subparagraph (A)
the following new subparagraph:
‘‘(B) wage and unemployment compensa-
tion information contained in the records of
such agency shall be furnished to the Secretary
of Health and Human Services (in accordance
with regulations promulgated by such Sec-
retary) as necessary for the purposes of the di-
rectory of New Hires established under section
453(i) of the Social Security Act, and’’.
(3) TO STATE GRANT PROGRAM UNDER TITLE
III OF THE SOCIAL SECURITY ACT.—Section 303(a)
(42 U.S.C. 503(a)) is amended—
(A) by striking ‘‘and’’ at the end of para-
graph (8);
(B) by striking the period at the end of
paragraph (9) and inserting ‘‘; and’’; and
(C) by adding after paragraph (9) the fol-
lowing new paragraph:
‘‘(10) The making of quarterly electronic re-
ports, at such dates, in such format, and containing
such information, as required by the Secretary of
Health and Human Services under section 453(i)(3),
311
and compliance with such provisions as such Sec-
retary may find necessary to ensure the correctness
and verification of such reports.’’.
SEC. 41306. USE OF SOCIAL SECURITY NUMBERS.
(a) STATE LAW REQUIREMENT.—Section 466(a) (42
U.S.C. 666(a)), as amended by section 41101(a) of this
subtitle, is amended by adding at the end the following
new paragraph:
‘‘(13) 
SOCIAL
SECURITY
NUMBERS
RE-
QUIRED.—Procedures requiring the recording of so-
cial security numbers—
‘‘(A) of both parties on marriage licenses
and divorce decrees; and
‘‘(B) of both parents, on birth records and
child support and paternity orders.’’.
(b) CLARIFICATION OF FEDERAL POLICY.—Section
205(c)(2)(C)(ii) (42 U.S.C. 405(c)(2)(C)(ii)) is amended
by striking the third sentence and inserting ‘‘This clause
shall not be considered to authorize disclosure of such
numbers except as provided in the preceding sentence.’’.
312
CHAPTER 4—STREAMLINING AND
UNIFORMITY OF PROCEDURES
SEC. 41401. ADOPTION OF UNIFORM STATE LAWS.
Section 466(a) (42 U.S.C. 666(a)), as amended by
sections 41101(a) and 41306(a) of this subtitle, is amend-
ed by adding at the end the following new paragraph:
‘‘(14) INTERSTATE ENFORCEMENT.—(A) ADOP-
TION OF UIFSA.—Procedures under which the State
adopts in its entirety (with the modifications and ad-
ditions specified in this paragraph) not later than
January 1, 1997, and uses on and after such date,
the Uniform Interstate Family Support Act, as ap-
proved by the National Conference of Commissioners
on Uniform State Laws in August, 1992.
‘‘(B) EXPANDED APPLICATION OF UIFSA.—The
State law adopted pursuant to subparagraph (A)
shall be applied to any case—
‘‘(i) involving an order established or modi-
fied in one State and for which a subsequent
modification is sought in another State; or
‘‘(ii) in which interstate activity is required
to enforce an order.
‘‘(C) JURISDICTION TO MODIFY ORDERS.—The
State law adopted pursuant to subparagraph (A) of
this paragraph shall contain the following provision
313
in lieu of section 611(a)(1) of the Uniform Inter-
state Family Support Act described in such subpara-
graph (A):
‘‘ ‘(1) the following requirements are met:
‘‘ ‘(i) the child, the individual obligee, and
the obligor—
‘‘ ‘(I) do not reside in the issuing
State; and
‘‘ ‘(II) either reside in this State or
are subject to the jurisdiction of this State
pursuant to section 201; and
‘‘ ‘(ii) (in any case where another State is
exercising or seeks to exercise jurisdiction to
modify the order) the conditions of section 204
are met to the same extent as required for pro-
ceedings to establish orders; or’.
‘‘(D) SERVICE
OF
PROCESS.—The State law
adopted pursuant to subparagraph (A) shall recog-
nize as valid, for purposes of any proceeding subject
to such State law, service of process upon persons
in the State (and proof of such service) by any
means acceptable in another State which is the initi-
ating or responding State in such proceeding.
‘‘(E) 
COOPERATION
BY
EMPLOYERS.—The
State law adopted pursuant to subparagraph (A)
314
shall provide for the use of procedures (including
sanctions for noncompliance) under which all entities
in the State (including for-profit, nonprofit, and gov-
ernmental employers) are required to provide
promptly, in response to a request by the State
agency of that or any other State administering a
program under this part, information on the employ-
ment, compensation, and benefits of any individual
employed by such entity as an employee or contrac-
tor.’’.
SEC. 41402. IMPROVEMENTS TO FULL FAITH AND CREDIT
FOR CHILD SUPPORT ORDERS.
Section 1738B of title 28, United States Code, is
amended—
(1) in subsection (a)(2), by striking ‘‘subsection
(e)’’ and inserting ‘‘subsections (e), (f), and (i)’’;
(2) in subsection (b), by inserting after the 2nd
undesignated paragraph the following:
‘‘ ‘child’s home State’ means the State in which
a child lived with a parent or a person acting as par-
ent for at least six consecutive months immediately
preceding the time of filing of a petition or com-
parable pleading for support and, if a child is less
than six months old, the State in which the child
lived from birth with any of them. A period of tem-
315
porary absence of any of them is counted as part of
the six-month period.’’;
(3) in subsection (c), by inserting ‘‘by a court
of a State’’ before ‘‘is made’’;
(4) in subsection (c)(1), by inserting ‘‘and sub-
sections (e), (f), and (g)’’ after ‘‘located’’;
(5) in subsection (d)—
(A) by inserting ‘‘individual’’ before ‘‘con-
testant’’; and
(B) by striking ‘‘subsection (e)’’ and in-
serting ‘‘subsections (e) and (f)’’;
(6) in subsection (e), by striking ‘‘make a modi-
fication of a child support order with respect to a
child that is made’’ and inserting ‘‘modify a child
support order issued’’;
(7) in subsection (e)(1), by inserting ‘‘pursuant
to subsection (i)’’ before the semicolon;
(8) in subsection (e)(2)—
(A) by inserting ‘‘individual’’ before ‘‘con-
testant’’ each place such term appears; and
(B) by striking ‘‘to that court’s making the
modification and assuming’’ and inserting ‘‘with
the State of continuing, exclusive jurisdiction
for a court of another State to modify the order
and assume’’;
316
(9) by redesignating subsections (f) and (g) as
subsections (g) and (h), respectively;
(10) by inserting after subsection (e) the follow-
ing:
‘‘(f) RECOGNITION OF CHILD SUPPORT ORDERS.—
If one or more child support orders have been issued in
this or another State with regard to an obligor and a child,
a court shall apply the following rules in determining
which order to recognize for purposes of continuing, exclu-
sive jurisdiction and enforcement:
‘‘(1) If only one court has issued a child sup-
port order, the order of that court must be recog-
nized.
‘‘(2) If two or more courts have issued child
support orders for the same obligor and child, and
only one of the courts would have continuing, exclu-
sive jurisdiction under this section, the order of that
court must be recognized.
‘‘(3) If two or more courts have issued child
support orders for the same obligor and child, and
only one of the courts would have continuing, exclu-
sive jurisdiction under this section, an order issued
by a court in the current home State of the child
must be recognized, but if an order has not been is-
317
sued in the current home State of the child, the
order most recently issued must be recognized.
‘‘(4) If two or more courts have issued child
support orders for the same obligor and child, and
none of the courts would have continuing, exclusive
jurisdiction under this section, a court may issue a
child support order, which must be recognized.
‘‘(5) The court that has issued an order recog-
nized under this subsection is the court having con-
tinuing, exclusive jurisdiction.’’;
(11) in subsection (g) (as so redesignated)—
(A) by striking ‘‘PRIOR’’ and inserting
‘‘MODIFIED’’; and
(B) by striking ‘‘subsection (e)’’ and in-
serting ‘‘subsections (e) and (f)’’;
(12) in subsection (h) (as so redesignated)—
(A) in paragraph (2), by inserting ‘‘includ-
ing the duration of current payments and other
obligations of support’’ before the comma; and
(B) in paragraph (3), by inserting ‘‘arrears
under’’ after ‘‘enforce’’; and
(13) by adding at the end the following:
‘‘(i) REGISTRATION FOR MODIFICATION.—If there is
no individual contestant or child residing in the issuing
State, the party or support enforcement agency seeking
318
to modify, or to modify and enforce, a child support order
issued in another State shall register that order in a State
with jurisdiction over the nonmovant for the purpose of
modification.’’.
SEC. 41403. STATE LAWS PROVIDING EXPEDITED PROCE-
DURES.
(a) STATE LAW REQUIREMENTS.—Section 466 (42
U.S.C. 666) is amended—
(1) in subsection (a)(2), in the first sentence, to
read as follows: ‘‘Expedited administrative and judi-
cial procedures (including the procedures specified in
subsection (c)) for establishing paternity and for es-
tablishing, modifying, and enforcing support obliga-
tions.’’; and
(2) by adding after subsection (b) the following
new subsection:
‘‘(c) EXPEDITED
PROCEDURES.—The procedures
specified in this subsection are the following:
‘‘(1) ADMINISTRATIVE ACTION BY STATE AGEN-
CY.—Procedures which give the State agency the au-
thority (and recognize and enforce the authority of
State agencies of other States), without the necessity
of obtaining an order from any other judicial or ad-
ministrative tribunal (but subject to due process
safeguards, including (as appropriate) requirements
319
for notice, opportunity to contest the action, and op-
portunity for an appeal on the record to an inde-
pendent administrative or judicial tribunal), to take
the following actions relating to establishment or en-
forcement of orders:
‘‘(A) GENETIC TESTING.—To order genetic
testing for the purpose of paternity establish-
ment as provided in section 466(a)(5).
‘‘(B) DEFAULT ORDERS.—To enter a de-
fault order, upon a showing of service of proc-
ess and any additional showing required by
State law—
‘‘(i) establishing paternity, in the case
of any putative father who refuses to sub-
mit to genetic testing; and
‘‘(ii) establishing or modifying a sup-
port obligation, in the case of a parent (or
other obligor or obligee) who fails to re-
spond to notice to appear at a proceeding
for such purpose.
‘‘(C) SUBPOENAS.—To subpoena any fi-
nancial or other information needed to estab-
lish, modify, or enforce an order, and to sanc-
tion failure to respond to any such subpoena.
320
‘‘(D) ACCESS TO PERSONAL AND FINAN-
CIAL INFORMATION.—To obtain access, subject
to safeguards on privacy and information secu-
rity, to the following records (including auto-
mated access, in the case of records maintained
in automated data bases):
‘‘(i) records of other State and local
government agencies, including—
‘‘(I) vital statistics (including
records of marriage, birth, and di-
vorce);
‘‘(II) State and local tax and rev-
enue records (including information
on residence address, employer, in-
come and assets);
‘‘(III) records concerning real
and titled personal property;
‘‘(IV) records of occupational and
professional licenses, and records con-
cerning the ownership and control of
corporations, partnerships, and other
business entities;
‘‘(V) 
employment 
security
records;
321
‘‘(VI) records of agencies admin-
istering public assistance programs;
‘‘(VII) records of the motor vehi-
cle department; and
‘‘(VIII) corrections records; and
‘‘(ii) certain records held by private
entities, including—
‘‘(I) customer records of public
utilities and cable television compa-
nies; and
‘‘(II) information (including in-
formation on assets and liabilities) on
individuals who owe or are owed sup-
port (or against or with respect to
whom a support obligation is sought)
held by financial institutions (subject
to limitations on liability of such enti-
ties arising from affording such ac-
cess).
‘‘(E) INCOME
WITHHOLDING.—To order
income withholding in accordance with sub-
section (a)(1) and (b) of section 466.
‘‘(F) CHANGE IN PAYEE.—(In cases where
support is subject to an assignment under sec-
tion 402(a)(26), 471(a)(17), or 1912, or to a
322
requirement to pay through the centralized col-
lections unit under section 454B) upon provid-
ing notice to obligor and obligee, to direct the
obligor or other payor to change the payee to
the appropriate government entity.
‘‘(G) SECURE ASSETS TO SATISFY ARREAR-
AGES.—For the purpose of securing overdue
support—
‘‘(i) to intercept and seize any peri-
odic or lump-sum payment to the obligor
by or through a State or local government
agency, including—
‘‘(I) 
unemployment 
compensa-
tion, 
workers’ 
compensation, 
and
other benefits;
‘‘(II) judgments and settlements
in cases under the jurisdiction of the
State or local government; and
‘‘(III) lottery winnings;
‘‘(ii) to attach and seize assets of the
obligor held by financial institutions;
‘‘(iii) to attach public and private re-
tirement funds in appropriate cases, as de-
termined by the Secretary; and
323
‘‘(iv) to impose liens in accordance
with paragraph (a)(4) and, in appropriate
cases, to force sale of property and dis-
tribution of proceeds.
‘‘(H) INCREASE
MONTHLY
PAYMENTS.—
For the purpose of securing overdue support, to
increase the amount of monthly support pay-
ments to include amounts for arrearages (sub-
ject to such conditions or restrictions as the
State may provide).
‘‘(I) 
SUSPENSION
OF
DRIVERS’ 
LI-
CENSES.—To suspend drivers’ licenses of indi-
viduals owing past-due support, in accordance
with subsection (a)(16).
‘‘(2) SUBSTANTIVE AND PROCEDURAL RULES.—
The expedited procedures required under subsection
(a)(2) shall include the following rules and author-
ity, applicable with respect to all proceedings to es-
tablish paternity or to establish, modify, or enforce
support orders:
‘‘(A) LOCATOR
INFORMATION; PRESUMP-
TIONS
CONCERNING
NOTICE.—Procedures
under which—
‘‘(i) the parties to any paternity or
child support proceedings are required
324
(subject to privacy safeguards) to file with
the tribunal before entry of an order, and
to update as appropriate, information on
location and identity (including Social Se-
curity number, residential and mailing ad-
dresses, telephone number, driver’s license
number, and name, address, and telephone
number of employer); and
‘‘(ii) in any subsequent child support
enforcement action between the same par-
ties, the tribunal shall be authorized, upon
sufficient showing that diligent effort has
been made to ascertain such party’s cur-
rent location, to deem due process require-
ments for notice and service of process to
be met, with respect to such party, by de-
livery to the most recent residential or em-
ployer address so filed pursuant to clause
(i).
‘‘(B) STATEWIDE
JURISDICTION.—Proce-
dures under which—
‘‘(i) the State agency and any admin-
istrative or judicial tribunal with authority
to hear child support and paternity cases
exerts statewide jurisdiction over the par-
325
ties, and orders issued in such cases have
statewide effect; and
‘‘(ii) (in the case of a State in which
orders in such cases are issued by local ju-
risdictions) a case may be transferred be-
tween jurisdictions in the State without
need for any additional filing by the peti-
tioner, or service of process upon the re-
spondent, to retain jurisdiction over the
parties.’’.
(c) EXCEPTIONS
FROM
STATE
LAW
REQUIRE-
MENTS.—Section 466(d) (42 U.S.C. 666(d)) is amend-
ed—
(1) by striking ‘‘(d) If’’ and inserting the fol-
lowing:
‘‘(d) EXEMPTIONS FROM REQUIREMENTS.—
‘‘(1) IN GENERAL.—Subject to paragraph (2),
if’’; and
(2) by adding at the end the following new
paragraph:
‘‘(2) NONEXEMPT
REQUIREMENTS.—The Sec-
retary shall not grant an exemption from the re-
quirements of—
‘‘(A) subsection (a)(5) (concerning proce-
dures for paternity establishment);
326
‘‘(B) subsection (a)(10) (concerning modi-
fication of orders);
‘‘(C) subsection (a)(12) (concerning re-
cording of orders in the central State case reg-
istry);
‘‘(D) subsection (a)(13) (concerning re-
cording of Social Security numbers);
‘‘(E) subsection (a)(14) (concerning inter-
state enforcement); or
‘‘(F) subsection (c) (concerning expedited
procedures), other than paragraph (1)(A) there-
of (concerning establishment or modification of
support amount).’’.
(d) AUTOMATION OF STATE AGENCY FUNCTIONS.—
Section 454A, as added by section 41205(a)(2) of this
subtitle and as amended by sections 41301 and 41302(c)
of this subtitle, is amended by adding at the end the fol-
lowing new subsection:
‘‘(h) EXPEDITED ADMINISTRATIVE PROCEDURES.—
The automated system required under this section shall
be used, to the maximum extent feasible, to implement any
expedited administrative procedures required under sec-
tion 466(c).’’.
327
CHAPTER 5—PATERNITY ESTABLISHMENT
SEC. 41501. 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)—
(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
328
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 non-
existence 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
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
329
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.
‘‘(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
330
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-
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
331
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
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:
332
‘‘(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
‘‘(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
333
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
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-
334
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
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.
335
(c) TECHNICAL
AMENDMENT.—Section 468 (42
U.S.C. 668) is amended by striking ‘‘a simple civil process
for voluntarily acknowledging paternity and’’.
SEC. 41502. OUTREACH FOR VOLUNTARY PATERNITY ES-
TABLISHMENT.
(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;
‘‘(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);