605
for an incentive adjustment under this sec-
tion; and
‘‘(ii) the amounts of incentive adjust-
ment that shall be awarded to a State that
achieves specified accomplishment or im-
provement levels, which amounts shall be
graduated, ranging up to—
‘‘(I) 12 percentage points, in con-
nection with paternity establishment;
and
‘‘(II) 12 percentage points, in
connection with overall performance in
child support enforcement.
‘‘(B) LIMITATION.—In setting performance
standards pursuant to subparagraph (A)(i) and
adjustment amounts pursuant to subparagraph
(A)(ii), the Secretary shall ensure that the aggre-
gate number of percentage point increases as in-
centive adjustments to all States do not exceed
such aggregate increases as assumed by the Sec-
retary in estimates of the cost of this section as
of June 1994, unless the aggregate performance
of all States exceeds the projected aggregate per-
formance of all States in such cost estimates.
606
‘‘(3) DETERMINATION
OF
INCENTIVE
ADJUST-
MENT.—The Secretary shall determine the amount (if
any) of the 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 accom-
plishment (and rates of improvement) with respect to
performance indicators specified by the Secretary
pursuant to this section.
‘‘(4) RECYCLING OF INCENTIVE ADJUSTMENT.—A
State to which funds are paid by the Federal Govern-
ment as a result of an incentive adjustment under
this section shall expend the funds in the State pro-
gram under this part within 2 years after the date
of the payment.
‘‘(b) DEFINITIONS.—As used in this section:
‘‘(1) 
PATERNITY
ESTABLISHMENT
PERCENT-
AGE.—The term ‘paternity establishment percentage’
means, with respect to a State and a fiscal year—
‘‘(A) the total number of children in the
State who were born out of wedlock, who have
not attained 1 year of age and for whom pater-
nity is established or acknowledged during the
fiscal year; divided by
‘‘(B) the total number of children born out
of wedlock in the State during the fiscal year.
607
‘‘(2) OVERALL PERFORMANCE IN CHILD SUPPORT
ENFORCEMENT.—The term ‘overall performance in
child support enforcement’ means a measure or meas-
ures of the effectiveness of the State agency in a fiscal
year which takes into account factors including—
‘‘(A) the percentage of cases requiring a
support order in which such an order was estab-
lished;
‘‘(B) the percentage of cases in which child
support is being paid;
‘‘(C) the ratio of child support collected to
child support due; and
‘‘(D) the cost-effectiveness of the State pro-
gram, as determined in accordance with stand-
ards established by the Secretary in regulations
(after consultation with the States).
‘‘(3) STATE DEFINED.—The term ‘State’ does not
include any area within the jurisdiction of an Indian
tribal government.’’.
(b) CONFORMING AMENDMENTS.—Section 454(22) (42
U.S.C. 654(22)) is amended—
(1) by striking ‘‘incentive payments’’ the 1st
place such term appears and inserting ‘‘incentive ad-
justments’’; and
608
(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’’.
(c) CALCULATION OF IV–D PATERNITY ESTABLISH-
MENT PERCENTAGE.—
(1) Section 452(g)(1) (42 U.S.C. 652(g)(1)) is
amended—
(A) in the matter preceding subparagraph
(A) by inserting ‘‘its overall performance in
child support enforcement is satisfactory (as de-
fined in section 458(b) and regulations of the
Secretary), and’’ after ‘‘1994,’’; and
(B) in each of subparagraphs (A) and (B),
by striking ‘‘75’’ and inserting ‘‘90’’.
(2) 
Section 
452(g)(2)(A) 
(42 
U.S.C.
652(g)(2)(A)) is amended in the matter preceding
clause (i)—
(A) by striking ‘‘paternity establishment
percentage’’ and inserting ‘‘IV–D paternity es-
tablishment percentage’’; and
(B) by striking ‘‘(or all States, as the case
may be)’’.
(3) Section 452(g)(3) (42 U.S.C. 652(g)(3)) is
amended—
609
(A) by striking subparagraph (A) and re-
designating subparagraphs (B) and (C) as sub-
paragraphs (A) and (B), respectively;
(B) in subparagraph (A) (as so redesig-
nated), by striking ‘‘the percentage of children
born out-of-wedlock in a State’’ and inserting
‘‘the percentage of children in a State who are
born out of wedlock or for whom support has not
been established’’; and
(C) in subparagraph (B) (as so redesig-
nated)—
(i) by inserting ‘‘and overall perform-
ance in child support enforcement’’ after
‘‘paternity establishment percentages’’; and
(ii) by inserting ‘‘and securing sup-
port’’ before the period.
(d) EFFECTIVE DATES.—
(1) INCENTIVE ADJUSTMENTS.—
(A) IN GENERAL.—The amendments made
by subsections (a) and (b) shall become effective
on October 1, 1997, except to the extent provided
in subparagraph (B).
(B) EXCEPTION.—Section 458 of the Social
Security Act, as in effect before the date of the
enactment of this section, shall be effective for
610
purposes of incentive payments to States for fis-
cal years before fiscal year 1999.
(2) PENALTY
REDUCTIONS.—The amendments
made by subsection (c) shall become effective with re-
spect to calendar quarters beginning on and after the
date of the enactment of this Act.
SEC. 443. 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 subpara-
graph (B) of paragraph (14); and
(3) by inserting after paragraph (14) the follow-
ing new paragraph:
‘‘(15) provide for—
‘‘(A) a process for annual reviews of and re-
ports to the Secretary on the State program op-
erated under the State plan approved under this
part, which shall include such information as
may be necessary to measure State compliance
with Federal requirements for expedited proce-
dures, using such standards and procedures as
are required by the Secretary, under which the
State agency will determine the extent to which
611
the program is operated in compliance with this
part; and
‘‘(B) a process of extracting from the auto-
mated data processing system required by para-
graph (16) and transmitting to the Secretary
data and calculations concerning the levels of ac-
complishment (and rates of improvement) with
respect to applicable performance indicators (in-
cluding IV–D paternity establishment percent-
ages and overall performance in child support
enforcement) to the extent necessary for purposes
of sections 452(g) and 458.’’.
(b) FEDERAL
ACTIVITIES.—Section 452(a)(4) (42
U.S.C. 652(a)(4)) is amended to read as follows:
‘‘(4)(A) review data and calculations transmitted
by State agencies pursuant to section 454(15)(B) on
State program accomplishments with respect to per-
formance indicators for purposes of subsection (g) of
this section and section 458;
‘‘(B) review annual reports submitted pursuant
to section 454(15)(A) and, as appropriate, provide to
the State comments, recommendations for additional
or alternative corrective actions, and technical assist-
ance; and
612
‘‘(C) conduct audits, in accordance with the Gov-
ernment auditing standards of the Comptroller Gen-
eral of the United States—
‘‘(i) at least once every 3 years (or more fre-
quently, in the case of a State which fails to
meet the requirements of this part, concerning
performance standards and reliability of pro-
gram data) to assess the completeness, reliability,
and security of the data, and the accuracy of the
reporting systems, used in calculating perform-
ance indicators under subsection (g) of this sec-
tion and section 458;
‘‘(ii) of the adequacy of financial manage-
ment of the State program operated under the
State plan approved under this part, including
assessments of—
‘‘(I) whether Federal and other funds
made available to carry out the State pro-
gram are being appropriately expended,
and are properly and fully accounted for;
and
‘‘(II) whether collections and disburse-
ments of support payments are carried out
correctly and are fully accounted for; and
613
‘‘(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 12 months or more after the date of the enactment
of this section.
SEC. 444. REQUIRED REPORTING PROCEDURES.
(a) ESTABLISHMENT.—Section 452(a)(5) (42 U.S.C.
652(a)(5)) is amended by inserting ‘‘, and establish proce-
dures to be followed by States for collecting and reporting
information required to be provided under this part, and
establish uniform definitions (including those necessary to
enable the measurement of State compliance with the re-
quirements of this part relating to expedited processes) to
be applied in following such procedures’’ before the semi-
colon.
(b) STATE PLAN REQUIREMENT.—Section 454 (42
U.S.C. 654), as amended by sections 404(a), 412(a), 413(a),
and 433 of this Act, is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(27);
(2) by striking the period at the end of para-
graph (28) and inserting ‘‘; and’’; and
(3) by adding after paragraph (28) the following
new paragraph:
614
‘‘(29) provide that the State shall use the defini-
tions established under section 452(a)(5) in collecting
and reporting information as required under this
part.’’.
SEC. 445. AUTOMATED DATA PROCESSING REQUIREMENTS.
(a) REVISED REQUIREMENTS.—
(1) IN GENERAL.—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 sys-
tem’’;
(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) AUTOMATED DATA PROCESSING.—Part D of
title IV (42 U.S.C. 651–669) is amended by inserting
after section 454 the following new section:
615
‘‘SEC. 454A. AUTOMATED DATA PROCESSING.
‘‘(a) IN GENERAL.—In order for a State to meet the
requirements of this section, the State agency administering
the State program under this part shall have in operation
a single statewide automated data processing and informa-
tion retrieval system which has the capability to perform
the tasks specified in this section with the frequency and
in the manner required by or under this part.
‘‘(b) PROGRAM MANAGEMENT.—The automated system
required by this section shall perform such functions as the
Secretary may specify relating to management of the State
program under this part, including—
‘‘(1) controlling and accounting for use of Fed-
eral, State, and local funds in carrying out the pro-
gram; and
‘‘(2) maintaining the data necessary to meet
Federal reporting requirements under this part on a
timely basis.
‘‘(c) CALCULATION OF PERFORMANCE INDICATORS.—
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-
616
tablishment and child support enforcement in the
State; and
‘‘(B) to calculate the IV–D paternity estab-
lishment 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 accu-
racy of the calculations described in paragraph
(1)(B).
‘‘(d) INFORMATION INTEGRITY AND SECURITY.—The
State agency shall have in effect safeguards on the integrity,
accuracy, and completeness of, access to, and use of data
in the automated system required by this section, which
shall include the following (in addition to such other safe-
guards as the Secretary may specify 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 the State
program under this part; and
617
‘‘(B) specify the data which may be used for
particular program purposes, and the personnel
permitted access to such data.
‘‘(2) SYSTEMS
CONTROLS.—Systems controls
(such as passwords or blocking of fields) to ensure
strict adherence to the policies described in paragraph
(1).
‘‘(3) MONITORING
OF
ACCESS.—Routine mon-
itoring of access to and use of the automated system,
through methods such as audit trails and feedback
mechanisms, to guard against and promptly identify
unauthorized access or use.
‘‘(4) TRAINING AND INFORMATION.—Procedures
to ensure that all personnel (including State and local
agency staff and contractors) who may have access to
or be required to use confidential program data are
informed of applicable requirements and penalties
(including those in section 6103 of the Internal Reve-
nue Code of 1986), and are adequately trained in se-
curity procedures.
‘‘(5) PENALTIES.—Administrative penalties (up
to and including dismissal from employment) for un-
authorized access to, or disclosure or use of, confiden-
tial data.’’.
618
(3) REGULATIONS.—The Secretary of Health and
Human Services shall prescribe final regulations for
implementation of section 454A of the Social Security
Act not later than 2 years after the date of the enact-
ment of this Act.
(4) 
IMPLEMENTATION
TIMETABLE.—Section
454(24) (42 U.S.C. 654(24)), as amended by sections
404(a)(2) and 412(a)(1) of this Act, 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, 1997, which meets all re-
quirements of this part which were enacted on or
before the date of enactment of the Family Sup-
port Act of 1988; and
‘‘(B) by October 1, 1999, which meets all re-
quirements of this part enacted on or before the
date of the enactment of the Family Self-Suffi-
ciency Act of 1995, 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 445(a)(3) of the Family Self-
Sufficiency Act of 1995.’’.
619
(b) SPECIAL FEDERAL MATCHING RATE FOR DEVEL-
OPMENT COSTS OF AUTOMATED SYSTEMS.—
(1) IN
GENERAL.—Section 455(a) (42 U.S.C.
655(a)) is amended—
(A) in paragraph (1)(B)—
(i) by striking ‘‘90 percent’’ and in-
serting ‘‘the percent specified in paragraph
(3)’’;
(ii) by striking ‘‘so much of’’; and
(iii) by striking ‘‘which the Secretary’’
and all that follows and inserting ‘‘, and’’;
and
(B) by adding at the end the following new
paragraph:
‘‘(3)(A) The Secretary shall pay to each State, for each
quarter in fiscal years 1996 and 1997, 90 percent of so
much of the State expenditures described in paragraph
(1)(B) as the Secretary finds are for a system meeting the
requirements specified in section 454(16), but limited to the
amount approved for States in the advance planning docu-
ments of such States submitted before May 1, 1995.
‘‘(B)(i) The Secretary shall pay to each State, for each
quarter in fiscal years 1998 through 2001, the percentage
specified in clause (ii) of so much of the State expenditures
described in paragraph (1)(B) as the Secretary finds are
620
for a system meeting the requirements of sections 454(16)
and 454A.
‘‘(ii) The percentage specified in this clause is the
greater of—
‘‘(I) 80 percent; or
‘‘(II) the percentage otherwise applicable to Fed-
eral payments to the State under subparagraph (A)
(as adjusted pursuant to section 458).’’.
(2) TEMPORARY
LIMITATION
ON
PAYMENTS
UNDER SPECIAL FEDERAL MATCHING RATE.—
(A) IN GENERAL.—The Secretary of Health
and Human Services may not pay more than
$260,000,000 in the aggregate under section
455(a)(3) of the Social Security Act for fiscal
years 1996, 1997, 1998, 1999, and 2000.
(B) ALLOCATION
OF
LIMITATION
AMONG
STATES.—The total amount payable to a State
under section 455(a)(3) of such Act for fiscal
years 1996, 1997, 1998, 1999, and 2000 shall
not exceed the limitation determined for the
State by the Secretary of Health and Human
Services in regulations.
(C) ALLOCATION
FORMULA.—The regula-
tions referred to in subparagraph (B) shall pre-
scribe a formula for allocating the amount speci-
621
fied in subparagraph (A) among States with
plans approved under part D of title IV of the
Social Security Act, which shall take into ac-
count—
(i) the relative size of State caseloads
under such part; and
(ii) the level of automation needed to
meet the automated data processing require-
ments of such part.
(c) CONFORMING AMENDMENT.—Section 123(c) of the
Family Support Act of 1988 (102 Stat. 2352; Public Law
100–485) is repealed.
SEC. 446. TECHNICAL ASSISTANCE.
(a) FOR TRAINING OF FEDERAL AND STATE STAFF,
RESEARCH AND DEMONSTRATION PROGRAMS, AND SPECIAL
PROJECTS OF REGIONAL OR NATIONAL SIGNIFICANCE.—
Section 452 (42 U.S.C. 652) is amended by adding at the
end the following new subsection:
‘‘(j) Out of any money in the Treasury of the United
States not otherwise appropriated, there is hereby appro-
priated to the Secretary for each fiscal year an amount
equal to 1 percent of the total amount paid to the Federal
Government pursuant to section 457(a) during the imme-
diately preceding fiscal year (as determined on the basis
of the most recent reliable data available to the Secretary
622
as of the end of the 3rd calendar quarter following the end
of such preceding fiscal year), to cover costs incurred by
the Secretary for—
‘‘(1) information dissemination and technical as-
sistance to States, training of State and Federal staff,
staffing studies, and related activities needed to im-
prove programs under this part (including technical
assistance concerning State automated systems re-
quired by this part); and
‘‘(2) 
research, 
demonstration, 
and 
special
projects of regional or national significance relating
to the operation of State programs under this part.’’.
(b) OPERATION OF FEDERAL PARENT LOCATOR SERV-
ICE.—Section 453 (42 U.S.C. 653), as amended by section
416(f) of this Act, is amended by adding at the end the
following new subsection:
‘‘(n) Out of any money in the Treasury of the United
States not otherwise appropriated, there is hereby appro-
priated to the Secretary for each fiscal year an amount
equal to 2 percent of the total amount paid to the Federal
Government pursuant to section 457(a) during the imme-
diately preceding fiscal year (as determined on the basis
of the most recent reliable data available to the Secretary
as of the end of the 3rd calendar quarter following the end
of such preceding fiscal year), to cover costs incurred by
623
the Secretary for operation of the Federal Parent Locator
Service under this section, to the extent such costs are not
recovered through user fees.’’.
SEC. 447. 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
(B) by adding at the end the following new
clauses:
‘‘(i) the total amount of child support
payments collected as a result of services
furnished during the fiscal year to individ-
uals receiving services under this part;
‘‘(ii) the cost to the States and to the
Federal Government of so furnishing the
services; and
‘‘(iii) the number of cases involving
families—
‘‘(I) who became ineligible for as-
sistance under State programs funded
under part A during a month in the
fiscal year; and
624
‘‘(II) with respect to whom a child
support payment was received in the
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’’;
(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 strik-
ing ‘‘, 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
625
(E) by redesignating clause (v) as clause
(vii), and inserting after clause (iii) the follow-
ing new clauses:
‘‘(iv) the total amount of support col-
lected during such fiscal year and distrib-
uted as current support;
‘‘(v) the total amount of support col-
lected during such fiscal year and distrib-
uted as arrearages;
‘‘(vi) the total amount of support due
and unpaid for all fiscal years; and’’.
(3) 
Section 
452(a)(10)(G) 
(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—
(A) in subparagraph (H), by striking
‘‘and’’;
(B) in subparagraph (I), by striking the pe-
riod and inserting ‘‘; and’’; and
(C) by inserting after subparagraph (I) the
following new subparagraph:
‘‘(J) compliance, by State, with the stand-
ards established pursuant to subsections (h) and
(i).’’.
626
(5) Section 452(a)(10) (42 U.S.C. 652(a)(10)) is
amended by striking all that follows subparagraph
(J), as added by paragraph (4).
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall be effective with respect to fiscal year 1996
and succeeding fiscal years.
Subtitle F—Establishment and
Modification of Support Orders
SEC. 451. NATIONAL CHILD SUPPORT GUIDELINES COMMIS-
SION.
(a) ESTABLISHMENT.—There is hereby established a
commission to be known as the National Child Support
Guidelines Commission (in this section referred to as the
‘‘Commission’’).
(b) GENERAL DUTIES.—
(1) IN GENERAL.—The Commission shall deter-
mine—
(A) whether it is appropriate to develop a
national child support guideline for consider-
ation by the Congress or for adoption by individ-
ual States; or
(B) based on a study of various guideline
models, the benefits and deficiencies of such mod-
els, and any needed improvements.
627
(2) DEVELOPMENT OF MODELS.—If the Commis-
sion determines under paragraph (1)(A) that a na-
tional child support guideline is needed or under
paragraph (1)(B) that improvements to guideline
models are needed, the Commission shall develop such
national guideline or improvements.
(c) MATTERS FOR CONSIDERATION BY THE COMMIS-
SION.—In making the recommendations concerning guide-
lines required under subsection (b), the Commission shall
consider—
(1) the adequacy of State child support guide-
lines established pursuant to section 467;
(2) matters generally applicable to all support
orders, including—
(A) the feasibility of adopting uniform
terms in all child support orders;
(B) how to define income and under what
circumstances income should be imputed; and
(C) tax treatment of child support pay-
ments;
(3) the appropriate treatment of cases in which
either or both parents have financial obligations to
more than 1 family, including the effect (if any) to
be given to—
628
(A) the income of either parent’s spouse;
and
(B) the financial responsibilities of either
parent for other children or stepchildren;
(4) the appropriate treatment of expenses for
child care (including care of the children of either
parent, and work-related or job-training-related child
care);
(5) the appropriate treatment of expenses for
health care (including uninsured health care) and
other extraordinary expenses for children with special
needs;
(6) the appropriate duration of support by 1 or
both parents, including—
(A) support (including shared support) for
postsecondary or vocational education; and
(B) support for disabled adult children;
(7) procedures to automatically adjust child sup-
port orders periodically to address changed economic
circumstances, including changes in the Consumer
Price Index or either parent’s income and expenses in
particular cases;
(8) procedures to help noncustodial parents ad-
dress grievances regarding visitation and custody or-
ders to prevent such parents from withholding child
629
support payments until such grievances are resolved;
and
(9) whether, or to what extent, support levels
should be adjusted in cases in which custody is shared
or in which the noncustodial parent has extended vis-
itation rights.
(d) MEMBERSHIP.—
(1) NUMBER; APPOINTMENT.—
(A) IN GENERAL.—The Commission shall be
composed of 12 individuals appointed jointly by
the Secretary of Health and Human Services
and the Congress, not later than January 15,
1997, of which—
(i) 2 shall be appointed by the Chair-
man of the Committee on Finance of the
Senate, and 1 shall be appointed by the
ranking minority member of the Committee;
(ii) 2 shall be appointed by the Chair-
man of the Committee on Ways and Means
of the House of Representatives, and 1 shall
be appointed by the ranking minority mem-
ber of the Committee; and
(iii) 6 shall be appointed by the Sec-
retary of Health and Human Services.
630
(B) QUALIFICATIONS OF MEMBERS.—Mem-
bers of the Commission shall have expertise and
experience in the evaluation and development of
child support guidelines. At least 1 member shall
represent advocacy groups for custodial parents,
at least 1 member shall represent advocacy
groups for noncustodial parents, and at least 1
member shall be the director of a State program
under part D of title IV of the Social Security
Act.
(2) TERMS OF OFFICE.—Each member shall be
appointed for a term of 2 years. A vacancy in the
Commission shall be filled in the manner in which
the original appointment was made.
(e) COMMISSION POWERS, COMPENSATION, ACCESS TO
INFORMATION, AND SUPERVISION.—The 1st sentence of sub-
paragraph (C), the 1st and 3rd sentences of subparagraph
(D), subparagraph (F) (except with respect to the conduct
of medical studies), clauses (ii) and (iii) of subparagraph
(G), and subparagraph (H) of section 1886(e)(6) of the So-
cial Security Act shall apply to the Commission in the same
manner in which such provisions apply to the Prospective
Payment Assessment Commission.
(f) REPORT.—Not later than 2 years after the appoint-
ment of members, the Commission shall submit to the Presi-
631
dent, the Committee on Ways and Means of the House of
Representatives, and the Committee on Finance of the Sen-
ate, a recommended national child support guideline and
a final assessment of issues relating to such a proposed na-
tional child support guideline.
(g) TERMINATION.—The Commission shall terminate
6 months after the submission of the report described in sub-
section (e).
SEC. 452. SIMPLIFIED PROCESS FOR REVIEW AND ADJUST-
MENT OF CHILD SUPPORT ORDERS.
Section 466(a)(10) (42 U.S.C. 666(a)(10)) is amended
to read as follows:
‘‘(10) Procedures under which the State shall re-
view and adjust each support order being enforced
under this part upon the request of either parent or
the State if there is an assignment. Such procedures
shall provide the following:
‘‘(A) The State shall review and, as appro-
priate, adjust the support order every 3 years,
taking into account the best interests of the child
involved.
‘‘(B)(i) The State may elect to review and,
if appropriate, adjust an order pursuant to sub-
paragraph (A) by—
632
‘‘(I) reviewing and, if appropriate, ad-
justing the order in accordance with the
guidelines established pursuant to section
467(a) if the amount of the child support
award under the order differs from the
amount that would be awarded in accord-
ance with the guidelines; or
‘‘(II) applying a cost-of-living adjust-
ment to the order in accordance with a for-
mula developed by the State and permit ei-
ther party to contest the adjustment, within
30 days after the date of the notice of the
adjustment, by making a request for review
and, if appropriate, adjustment of the order
in accordance with the child support guide-
lines established pursuant to section 467(a).
‘‘(ii) Any adjustment under clause (i) shall
be made without a requirement for proof or
showing of a change in circumstances.
‘‘(C) The State may use automated methods
(including automated comparisons with wage or
State income tax data) to identify orders eligible
for review, conduct the review, identify orders el-
igible for adjustment, apply the appropriate ad-
633
justment to the orders eligible for adjustment
under the threshold established by the State.
‘‘(D) The State shall, at the request of either
parent subject to such an order or of any State
child support enforcement agency, review and, if
appropriate, adjust the order in accordance with
the guidelines established pursuant to section
467(a) based upon a substantial change in the
circumstances of either parent.
‘‘(E) The State shall provide notice to the
parents subject to such an order informing them
of their right to request the State to review and,
if appropriate, adjust the order pursuant to sub-
paragraph (D). The notice may be included in
the order.’’.
SEC. 453. FURNISHING CONSUMER REPORTS FOR CERTAIN
PURPOSES RELATING TO CHILD SUPPORT.
Section 604 of the Fair Credit Reporting Act (15
U.S.C. 1681b) is amended by adding at the end the follow-
ing new paragraphs:
‘‘(4) In response to a request by the head of a
State or local child support enforcement agency (or a
State or local government official authorized by the
head of such an agency), if the person making the re-
634
quest certifies to the consumer reporting agency
that—
‘‘(A) the consumer report is needed for the
purpose of establishing an individual’s capacity
to make child support payments or determining
the appropriate level of such payments;
‘‘(B) the paternity of the consumer for the
child to which the obligation relates has been es-
tablished or acknowledged by the consumer in ac-
cordance with State laws under which the obliga-
tion arises (if required by those laws);
‘‘(C) the person has provided at least 10
days’ prior notice to the consumer whose report
is requested, by certified or registered mail to the
last known address of the consumer, that the re-
port will be requested, and
‘‘(D) the consumer report will be kept con-
fidential, will be used solely for a purpose de-
scribed in subparagraph (A), and will not be
used in connection with any other civil, admin-
istrative, or criminal proceeding, or for any
other purpose.
‘‘(5) To an agency administering a State plan
under section 454 of the Social Security Act (42
635
U.S.C. 654) for use to set an initial or modified child
support award.’’.
SEC. 454. NONLIABILITY FOR DEPOSITORY INSTITUTIONS
PROVIDING FINANCIAL RECORDS TO STATE
CHILD SUPPORT ENFORCEMENT AGENCIES
IN CHILD SUPPORT CASES.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of Federal or State law, a depository institution shall
not be liable under any Federal or State law to any person
for disclosing any financial record of an individual to a
State child support enforcement agency attempting to estab-
lish, modify, or enforce a child support obligation of such
individual.
(b) PROHIBITION
OF DISCLOSURE
OF FINANCIAL
RECORD OBTAINED BY STATE CHILD SUPPORT ENFORCE-
MENT AGENCY.—A State child support enforcement agency
which obtains a financial record of an individual from a
financial institution pursuant to subsection (a) may dis-
close such financial record only for the purpose of, and to
the extent necessary in, establishing, modifying, or enforc-
ing a child support obligation of such individual.
(c) CIVIL DAMAGES
FOR UNAUTHORIZED DISCLO-
SURE.—
(1) DISCLOSURE
BY
STATE
OFFICER
OR
EM-
PLOYEE.—If any person knowingly, or by reason of
636
negligence, discloses a financial record of an individ-
ual in violation of subsection (b), such individual
may bring a civil action for damages against such
person in a district court of the United States.
(2) NO LIABILITY FOR GOOD FAITH BUT ERRO-
NEOUS
INTERPRETATION.—No liability shall arise
under this subsection with respect to any disclosure
which results from a good faith, but erroneous, inter-
pretation of subsection (b).
(3) DAMAGES.—In any action brought under
paragraph (1), upon a finding of liability on the part
of the defendant, the defendant shall be liable to the
plaintiff in an amount equal to the sum of—
(A) the greater of—
(i) $1,000 for each act of unauthorized
disclosure of a financial record with respect
to which such defendant is found liable; or
(ii) the sum of—
(I) the actual damages sustained
by the plaintiff as a result of such un-
authorized disclosure; plus
(II) in the case of a willful disclo-
sure or a disclosure which is the result
of gross negligence, punitive damages;
plus
637
(B) the costs (including attorney’s fees) of
the action.
(d) DEFINITIONS.—For purposes of this section:
(1) The term ‘‘depository institution’’ means—
(A) a depository institution, as defined in
section 3(c) of the Federal Deposit Insurance Act
(12 U.S.C. 1813(c));
(B) an institution-affiliated party, as de-
fined in section 3(u) of such Act (12 U.S.C.
1813(v)); and
(C) any Federal credit union or State credit
union, as defined in section 101 of the Federal
Credit Union Act (12 U.S.C. 1752), including
an institution-affiliated party of such a credit
union, as defined in section 206(r) of such Act
(12 U.S.C. 1786(r)).
(2) The term ‘‘financial record’’ has the meaning
given such term in section 1101 of the Right to Fi-
nancial Privacy Act of 1978 (12 U.S.C. 3401).
(3) The term ‘‘State child support enforcement
agency’’ means a State agency which administers a
State program for establishing and enforcing child
support obligations.
638
Subtitle G—Enforcement of Support
Orders
SEC. 461. FEDERAL INCOME TAX REFUND OFFSET.
(a) CHANGED ORDER
OF REFUND DISTRIBUTION
UNDER INTERNAL REVENUE CODE.—
(1) IN GENERAL.—Subsection (c) of section 6402
of the Internal Revenue Code of 1986 (relating to au-
thority to make credits or refunds) is amended by
striking the 3rd and 4th sentences and inserting the
following new sentences: ‘‘A reduction under this sub-
section shall be applied 1st to satisfy past-due sup-
port, before any other reductions allowed by law (in-
cluding a credit against future liability for an inter-
nal revenue tax) have been made. A reduction under
this subsection shall be assigned to the State with re-
spect to past-due support owed to individuals for pe-
riods such individuals were receiving assistance under
part A or B of title IV of the Social Security Act only
after satisfying all other past-due support.’’.
(2) CONFORMING AMENDMENT.—Paragraph (2)
of section 6402(d) of such Code is amended by strik-
ing ‘‘with respect to past-due support collected pursu-
ant to an assignment under section 402(a)(26) of the
Social Security Act’’.
639
(b) ELIMINATION OF DISPARITIES IN TREATMENT OF
ASSIGNED AND NONASSIGNED ARREARAGES.—
(1) Section 464(a) (42 U.S.C. 664(a)) is amend-
ed—
(A) by striking ‘‘(a)’’ and inserting ‘‘(a)
OFFSET AUTHORIZED.—’’;
(B) in paragraph (1)—
(i) in the 1st sentence, by striking
‘‘which has been assigned to such State pur-
suant to section 402(a)(26) or section
471(a)(17)’’; and
(ii) in the 2nd sentence, by striking
‘‘in accordance with section 457(b)(4) or
(d)(3)’’ and inserting ‘‘as provided in para-
graph (2)’’;
(C) by striking paragraph (2) and inserting
the following new paragraph:
‘‘(2) The State agency shall distribute amounts paid
by the Secretary of the Treasury pursuant to paragraph
(1)—
‘‘(A) in accordance with section 457(a), in the
case of past-due support assigned to a State; and
‘‘(B) to or on behalf of the child to whom the
support was owed, in the case of past-due support not
so assigned.’’; and
640
(D) in paragraph (3)—
(i) by striking ‘‘or (2)’’ each place such
term appears; and
(ii) in subparagraph (B), by striking
‘‘under paragraph (2)’’ and inserting ‘‘on
account of past-due support described in
paragraph (2)(B)’’.
(2) Section 464(b) (42 U.S.C. 664(b)) is amend-
ed—
(A) by striking ‘‘(b)(1)’’ and inserting the
following:
‘‘(b) REGULATIONS.—’’; and
(B) by striking paragraph (2).
(3) Section 464(c) (42 U.S.C. 664(c)) is amend-
ed—
(A) by striking ‘‘(c)(1) Except as provided
in paragraph (2), as’’ and inserting the follow-
ing:
‘‘(c) DEFINITION.—As’’; and
(B) by striking paragraphs (2) and (3).
SEC. 462. INTERNAL REVENUE SERVICE COLLECTION OF
ARREARAGES.
(a) AMENDMENT TO INTERNAL REVENUE CODE.—Sec-
tion 6305(a) of the Internal Revenue Code of 1986 (relating
to collection of certain liability) is amended—
641
(1) in paragraph (1), by inserting ‘‘except as
provided in paragraph (5)’’ after ‘‘collected’’;
(2) by striking ‘‘and’’ at the end of paragraph
(3);
(3) by striking the period at the end of para-
graph (4) and inserting ‘‘, and’’;
(4) by adding at the end the following new para-
graph:
‘‘(5) no additional fee may be assessed for adjust-
ments to an amount previously certified pursuant to
such section 452(b) with respect to the same obligor.’’;
and
(5) by striking ‘‘Secretary of Health, Education,
and Welfare’’ each place it appears and inserting
‘‘Secretary of Health and Human Services’’.
(b) EFFECTIVE DATE.—The amendments made by this
section shall become effective October 1, 1997.
SEC. 463. AUTHORITY TO COLLECT SUPPORT FROM FED-
ERAL EMPLOYEES.
(a) CONSOLIDATION AND STREAMLINING OF AUTHORI-
TIES.—Section 459 (42 U.S.C. 659) is amended to read as
follows:
642
‘‘SEC. 459. CONSENT BY THE UNITED STATES TO INCOME
WITHHOLDING, GARNISHMENT, AND SIMILAR
PROCEEDINGS FOR ENFORCEMENT OF CHILD
SUPPORT AND ALIMONY OBLIGATIONS.
‘‘(a) CONSENT TO SUPPORT ENFORCEMENT.—Not-
withstanding any other provision of law (including section
207 of this Act and section 5301 of title 38, United States
Code), effective January 1, 1975, moneys (the entitlement
to which is based upon remuneration for employment) due
from, or payable by, the United States or the District of
Columbia (including any agency, subdivision, or instru-
mentality thereof) to any individual, including members of
the Armed Forces of the United States, shall be subject, in
like manner and to the same extent as if the United States
or the District of Columbia were a private person, to with-
holding in accordance with State law enacted pursuant to
subsections (a)(1) and (b) of section 466 and regulations
of the Secretary under such subsections, and to any other
legal process brought, by a State agency administering a
program under a State plan approved under this part or
by an individual obligee, to enforce the legal obligation of
the individual to provide child support or alimony.
‘‘(b) CONSENT
TO REQUIREMENTS APPLICABLE
TO
PRIVATE PERSON.—With respect to notice to withhold in-
come pursuant to subsection (a)(1) or (b) of section 466,
or any other order or process to enforce support obligations
643
against an individual (if the order or process contains or
is accompanied by sufficient data to permit prompt identi-
fication of the individual and the moneys involved), each
governmental entity specified in subsection (a) shall be sub-
ject to the same requirements as would apply if the entity
were a private person, except as otherwise provided in this
section.
‘‘(c) DESIGNATION OF AGENT; RESPONSE TO NOTICE
OR PROCESS—
‘‘(1) DESIGNATION OF AGENT.—The head of each
agency subject to this section shall—
‘‘(A) designate an agent or agents to receive
orders and accept service of process in matters
relating to child support or alimony; and
‘‘(B) annually publish in the Federal Reg-
ister the designation of the agent or agents, iden-
tified by title or position, mailing address, and
telephone number.
‘‘(2) RESPONSE TO NOTICE OR PROCESS.—If an
agent designated pursuant to paragraph (1) of this
subsection receives notice pursuant to State proce-
dures in effect pursuant to subsection (a)(1) or (b) of
section 466, or is effectively served with any order,
process, or interrogatory, with respect to an individ-
644
ual’s child support or alimony payment obligations,
the agent shall—
‘‘(A) as soon as possible (but not later than
15 days) thereafter, send written notice of the no-
tice or service (together with a copy of the notice
or service) to the individual at the duty station
or last-known home address of the individual;
‘‘(B) within 30 days (or such longer period
as may be prescribed by applicable State law)
after receipt of a notice pursuant to such State
procedures, comply with all applicable provi-
sions of section 466; and
‘‘(C) within 30 days (or such longer period
as may be prescribed by applicable State law)
after effective service of any other such order,
process, or interrogatory, respond to the order,
process, or interrogatory.
‘‘(d) PRIORITY OF CLAIMS.—If a governmental entity
specified in subsection (a) receives notice or is served with
process, as provided in this section, concerning amounts
owed by an individual to more than 1 person—
‘‘(1) support collection under section 466(b) must
be given priority over any other process, as provided
in section 466(b)(7);
645
‘‘(2) allocation of moneys due or payable to an
individual among claimants under section 466(b)
shall be governed by section 466(b) and the regula-
tions prescribed under such section; and
‘‘(3) such moneys as remain after compliance
with paragraphs (1) and (2) shall be available to sat-
isfy any other such processes on a 1st-come, 1st-served
basis, with any such process being satisfied out of
such moneys as remain after the satisfaction of all
such processes which have been previously served.
‘‘(e) NO REQUIREMENT TO VARY PAY CYCLES.—A
governmental entity that is affected by legal process served
for the enforcement of an individual’s child support or ali-
mony payment obligations shall not be required to vary its
normal pay and disbursement cycle in order to comply with
the legal process.
‘‘(f) RELIEF FROM LIABILITY.—
‘‘(1) Neither the United States, nor the govern-
ment of the District of Columbia, nor any disbursing
officer shall be liable with respect to any payment
made from moneys due or payable from the United
States to any individual pursuant to legal process
regular on its face, if the payment is made in accord-
ance with this section and the regulations issued to
carry out this section.
647
‘‘(1) IN
GENERAL.—Subject to paragraph (2),
moneys paid or payable to an individual which are
considered to be based upon remuneration for employ-
ment, for purposes of this section—
‘‘(A) consist of—
‘‘(i) compensation paid or payable for
personal services of the individual, whether
the compensation is denominated as wages,
salary, commission, bonus, pay, allowances,
or otherwise (including severance pay, sick
pay, and incentive pay);
‘‘(ii) periodic benefits (including a
periodic benefit as defined in section
228(h)(3)) or other payments—
‘‘(I) under the insurance system
established by title II;
‘‘(II) under any other system or
fund established by the United States
which provides for the payment of pen-
sions, retirement or retired pay, annu-
ities, dependents’ or survivors’ benefits,
or similar amounts payable on account
of personal services performed by the
individual or any other individual;
648
‘‘(III) as compensation for death
under any Federal program;
‘‘(IV) under any Federal program
established to provide ‘black lung’ bene-
fits; or
‘‘(V) by the Secretary of Veterans
Affairs as pension, or as compensation
for a service-connected disability or
death (except any compensation paid
by the Secretary to a member of the
Armed Forces who is in receipt of re-
tired or retainer pay if the member has
waived a portion of the retired pay of
the member in order to receive the com-
pensation); and
‘‘(iii) workers’ compensation benefits
paid under Federal or State law; but
‘‘(B) do not include any payment—
‘‘(i) by way of reimbursement or other-
wise, to defray expenses incurred by the in-
dividual in carrying out duties associated
with the employment of the individual; or
‘‘(ii) as allowances for members of the
uniformed services payable pursuant to
chapter 7 of title 37, United States Code, as
649
prescribed by the Secretaries concerned (de-
fined by section 101(5) of such title) as nec-
essary for the efficient performance of duty.
‘‘(2) CERTAIN AMOUNTS EXCLUDED.—In deter-
mining the amount of any moneys due from, or pay-
able by, the United States to any individual, there
shall be excluded amounts which—
‘‘(A) are owed by the individual to the
United States;
‘‘(B) are required by law to be, and are, de-
ducted from the remuneration or other payment
involved, including Federal employment taxes,
and fines and forfeitures ordered by court-mar-
tial;
‘‘(C) are properly withheld for Federal,
State, or local income tax purposes, if the with-
holding of the amounts is authorized or required
by law and if amounts withheld are not greater
than would be the case if the individual claimed
all dependents to which he was entitled (the
withholding of additional amounts pursuant to
section 3402(i) of the Internal Revenue Code of
1986 may be permitted only when the individual
presents evidence of a tax obligation which sup-
ports the additional withholding);
650
‘‘(D) are deducted as health insurance pre-
miums;
‘‘(E) are deducted as normal retirement
contributions (not including amounts deducted
for supplementary coverage); or
‘‘(F) are deducted as normal life insurance
premiums from salary or other remuneration for
employment (not including amounts deducted for
supplementary coverage).
‘‘(i) DEFINITIONS.—As used in this section:
‘‘(1) UNITED STATES.—The term ‘United States’
includes any department, agency, or instrumentality
of the legislative, judicial, or executive branch of the
Federal Government, the United States Postal Serv-
ice, the Postal Rate Commission, any Federal cor-
poration created by an Act of Congress that is wholly
owned by the Federal Government, and the govern-
ments of the territories and possessions of the United
States.
‘‘(2) CHILD SUPPORT.—The term ‘child support’,
when used in reference to the legal obligations of an
individual to provide such support, means periodic
payments of funds for the support and maintenance
of a child or children with respect to which the indi-
vidual has such an obligation, and (subject to and in
651
accordance with State law) includes payments to pro-
vide for health care, education, recreation, clothing,
or to meet other specific needs of such a child or chil-
dren, and includes attorney’s fees, interest, and court
costs, when and to the extent that the same are ex-
pressly made recoverable as such pursuant to a decree,
order, or judgment issued in accordance with applica-
ble State law by a court of competent jurisdiction.
‘‘(3) ALIMONY.—The term ‘alimony’, when used
in reference to the legal obligations of an individual
to provide the same, means periodic payments of
funds for the support and maintenance of the spouse
(or former spouse) of the individual, and (subject to
and in accordance with State law) includes separate
maintenance, alimony pendente lite, maintenance,
and spousal support, and includes attorney’s fees, in-
terest, and court costs when and to the extent that the
same are expressly made recoverable as such pursuant
to a decree, order, or judgment issued in accordance
with applicable State law by a court of competent ju-
risdiction. Such term does not include any payment
or transfer of property or its value by an individual
to the spouse or a former spouse of the individual in
compliance with any community property settlement,
652
equitable distribution of property, or other division of
property between spouses or former spouses.
‘‘(4) PRIVATE PERSON.—The term ‘private per-
son’ means a person who does not have sovereign or
other special immunity or privilege which causes the
person not to be subject to legal process.
‘‘(5) LEGAL PROCESS.—The term ‘legal process’
means any writ, order, summons, or other similar
process in the nature of garnishment—
‘‘(A) which is issued by—
‘‘(i) a court of competent jurisdiction
in any State, territory, or possession of the
United States;
‘‘(ii) a court of competent jurisdiction
in any foreign country with which the
United States has entered into an agree-
ment which requires the United States to
honor the process; or
‘‘(iii) an authorized official pursuant
to an order of such a court of competent ju-
risdiction or pursuant to State or local law;
and
‘‘(B) which is directed to, and the purpose
of which is to compel, a governmental entity
which holds moneys which are otherwise payable
653
to an individual to make a payment from the
moneys to another party in order to satisfy a
legal obligation of the individual to provide child
support or make alimony payments.’’.
(b) CONFORMING AMENDMENTS.—
(1) TO PART D OF TITLE IV.—Sections 461 and
462 (42 U.S.C. 661 and 662) are repealed.
(2) TO TITLE 5, UNITED STATES CODE.—Section
5520a of title 5, United States Code, is amended, in
subsections (h)(2) and (i), by striking ‘‘sections 459,
461, and 462 of the Social Security Act (42 U.S.C.
659, 661, and 662)’’ and inserting ‘‘section 459 of the
Social Security Act (42 U.S.C. 659)’’.
(c) MILITARY RETIRED AND RETAINER PAY.—
(1) DEFINITION OF COURT.—Section 1408(a)(1)
of title 10, United States Code, is amended—
(A) by striking ‘‘and’’ at the end of sub-
paragraph (B);
(B) by striking the period at the end of sub-
paragraph (C) and inserting ‘‘; and’’; and
(C) by adding after subparagraph (C) the
following new subparagraph:
‘‘(D) any administrative or judicial tribu-
nal of a State competent to enter orders for sup-
port or maintenance (including a State agency
654
administering a program under a State plan ap-
proved under part D of title IV of the Social Se-
curity Act), and, for purposes of this subpara-
graph, the term ‘State’ includes the District of
Columbia, the Commonwealth of Puerto Rico, the
Virgin Islands, Guam, and American Samoa.’’.
(2) DEFINITION
OF
COURT
ORDER.—Section
1408(a)(2) of such title is amended by inserting ‘‘or
a court order for the payment of child support not in-
cluded in or accompanied by such a decree or settle-
ment,’’ before ‘‘which—’’.
(3) PUBLIC
PAYEE.—Section 1408(d) of such
title is amended—
(A) in the heading, by inserting ‘‘(OR FOR
BENEFIT OF)’’ before ‘‘SPOUSE OR’’; and
(B) in paragraph (1), in the 1st sentence,
by inserting ‘‘(or for the benefit of such spouse
or former spouse to a State disbursement unit es-
tablished pursuant to section 454B of the Social
Security Act or other public payee designated by
a State, in accordance with part D of title IV of
the Social Security Act, as directed by court
order, or as otherwise directed in accordance
with such part D)’’ before ‘‘in an amount suffi-
cient’’.
655
(4) RELATIONSHIP TO PART D OF TITLE IV.—
Section 1408 of such title is amended by adding at
the end the following new subsection:
‘‘(j) RELATIONSHIP TO OTHER LAWS.—In any case
involving an order providing for payment of child support
(as defined in section 459(i)(2) of the Social Security Act)
by a member who has never been married to the other par-
ent of the child, the provisions of this section shall not
apply, and the case shall be subject to the provisions of sec-
tion 459 of such Act.’’.
(d) EFFECTIVE DATE.—The amendments made by this
section shall become effective 6 months after the date of the
enactment of this Act.
SEC. 464. ENFORCEMENT OF CHILD SUPPORT OBLIGATIONS
OF MEMBERS OF THE ARMED FORCES.
(a) AVAILABILITY OF LOCATOR INFORMATION.—
(1) MAINTENANCE OF ADDRESS INFORMATION.—
The Secretary of Defense shall establish a centralized
personnel locator service that includes the address of
each member of the Armed Forces under the jurisdic-
tion of the Secretary. Upon request of the Secretary
of Transportation, addresses for members of the Coast
Guard shall be included in the centralized personnel
locator service.
(2) TYPE OF ADDRESS.—
656
(A) RESIDENTIAL
ADDRESS.—Except as
provided in subparagraph (B), the address for a
member of the Armed Forces shown in the loca-
tor service shall be the residential address of that
member.
(B) DUTY
ADDRESS.—The address for a
member of the Armed Forces shown in the loca-
tor service shall be the duty address of that mem-
ber in the case of a member—
(i) who is permanently assigned over-
seas, to a vessel, or to a routinely deployable
unit; or
(ii) with respect to whom the Secretary
concerned makes a determination that the
member’s residential address should not be
disclosed due to national security or safety
concerns.
(3) UPDATING
OF
LOCATOR
INFORMATION.—
Within 30 days after a member listed in the locator
service establishes a new residential address (or a new
duty address, in the case of a member covered by
paragraph (2)(B)), the Secretary concerned shall up-
date the locator service to indicate the new address of
the member.
657
(4) AVAILABILITY OF INFORMATION.—The Sec-
retary of Defense shall make information regarding
the address of a member of the Armed Forces listed
in the locator service available, on request, to the Fed-
eral Parent Locator Service established under section
453 of the Social Security Act.
(b) FACILITATING GRANTING OF LEAVE FOR ATTEND-
ANCE AT HEARINGS.—
(1) REGULATIONS.—The Secretary of each mili-
tary department, and the Secretary of Transportation
with respect to the Coast Guard when it is not operat-
ing as a service in the Navy, shall prescribe regula-
tions to facilitate the granting of leave to a member
of the Armed Forces under the jurisdiction of that
Secretary in a case in which—
(A) the leave is needed for the member to at-
tend a hearing described in paragraph (2);
(B) the member is not serving in or with a
unit deployed in a contingency operation (as de-
fined in section 101 of title 10, United States
Code); and
(C) the exigencies of military service (as de-
termined by the Secretary concerned) do not oth-
erwise require that such leave not be granted.
658
(2) COVERED
HEARINGS.—Paragraph (1) ap-
plies to a hearing that is conducted by a court or
pursuant to an administrative process established
under State law, in connection with a civil action—
(A) to determine whether a member of the
Armed Forces is a natural parent of a child; or
(B) to determine an obligation of a member
of the Armed Forces to provide child support.
(3) DEFINITIONS.—For purposes of this sub-
section:
(A) The term ‘‘court’’ has the meaning
given that term in section 1408(a) of title 10,
United States Code.
(B) The term ‘‘child support’’ has the mean-
ing given such term in section 459(i) of the So-
cial Security Act (42 U.S.C. 659(i)).
(c) PAYMENT OF MILITARY RETIRED PAY IN COMPLI-
ANCE WITH CHILD SUPPORT ORDERS.—
(1) 
DATE
OF
CERTIFICATION
OF
COURT
ORDER.—Section 1408 of title 10, United States Code,
as amended by section 463(c)(4) of this Act, is
amended—
(A) by redesignating subsections (i) and (j)
as subsections (j) and (k), respectively; and
659
(B) by inserting after subsection (h) the fol-
lowing new subsection:
‘‘(i) CERTIFICATION DATE.—It is not necessary that
the date of a certification of the authenticity or completeness
of a copy of a court order for child support received by the
Secretary concerned for the purposes of this section be recent
in relation to the date of receipt by the Secretary.’’.
(2) PAYMENTS CONSISTENT WITH ASSIGNMENTS
OF RIGHTS TO STATES.—Section 1408(d)(1) of such
title is amended by inserting after the 1st sentence the
following: ‘‘In the case of a spouse or former spouse
who assigns to a State the rights of the spouse or
former spouse to receive support, the Secretary con-
cerned may make the child support payments referred
to in the preceding sentence to that State in amounts
consistent with that assignment of rights.’’.
(3) ARREARAGES OWED BY MEMBERS OF THE
UNIFORMED SERVICES.—Section 1408(d) of such title
is amended by adding at the end the following new
paragraph:
‘‘(6) In the case of a court order for which effective
service is made on the Secretary concerned on or after the
date of the enactment of this paragraph and which provides
for payments from the disposable retired pay of a member
to satisfy the amount of child support set forth in the order,
660
the authority provided in paragraph (1) to make payments
from the disposable retired pay of a member to satisfy the
amount of child support set forth in a court order shall
apply to payment of any amount of child support arrear-
ages set forth in that order as well as to amounts of child
support that currently become due.’’.
(4) PAYROLL
DEDUCTIONS.—The Secretary of
Defense shall begin payroll deductions within 30 days
after receiving notice of withholding, or for the 1st
pay period that begins after such 30-day period.
SEC. 465. VOIDING OF FRAUDULENT TRANSFERS.
Section 466 (42 U.S.C. 666), as amended by section
421 of this Act, is amended by adding at the end the follow-
ing new subsection:
‘‘(g) In order to satisfy section 454(20)(A), each State
must have in effect—
‘‘(1)(A) the Uniform Fraudulent Conveyance Act
of 1981;
‘‘(B) the Uniform Fraudulent Transfer Act of
1984; or
‘‘(C) another law, specifying indicia of fraud
which create a prima facie case that a debtor trans-
ferred income or property to avoid payment to a child
support creditor, which the Secretary finds affords
comparable rights to child support creditors; and
661
‘‘(2) procedures under which, in any case in
which the State knows of a transfer by a child sup-
port debtor with respect to which such a prima facie
case is established, the State must—
‘‘(A) seek to void such transfer; or
‘‘(B) obtain a settlement in the best inter-
ests of the child support creditor.’’.
SEC. 466. WORK REQUIREMENT FOR PERSONS OWING
CHILD SUPPORT.
Section 466(a) of the Social Security Act (42 U.S.C.
666(a)), as amended by sections 401(a), 415, 417(a), and
423 of this Act, is amended by adding at the end the follow-
ing new paragraph:
‘‘(16) Procedures requiring the State, in any
case in which an individual owes support with re-
spect to a child receiving services under this part, to
seek a court order or administrative order that re-
quires the individual to—
‘‘(A) pay such support in accordance with
a plan approved by the court; or
‘‘(B) if the individual is not working and
is not incapacitated, participate in work activi-
ties (including, at State option, work activities
as defined in section 482) as the court deems ap-
propriate.’’.
662
SEC. 467. DEFINITION OF SUPPORT ORDER.
Section 453 (42 U.S.C. 653) as amended by sections
416 and 446(b) of this Act, is amended by adding at the
end the following new subsection:
‘‘(o) As used in this part, the term ‘support order’
means a judgment, decree, or order, whether temporary,
final, or subject to modification, issued by a court or an
administrative agency of competent jurisdiction, for the
support and maintenance of a child, including a child who
has attained the age of majority under the law of the issuing
State, or a child and the parent with whom the child is
living, which provides for monetary support, health care,
arrearages, or reimbursement, and which may include re-
lated costs and fees, interest and penalties, income withhold-
ing, attorneys’ fees, and other relief.’’.
SEC. 468. REPORTING ARREARAGES TO CREDIT BUREAUS.
Section 466(a)(7) (42 U.S.C. 666(a)(7)) is amended
to read as follows:
‘‘(7)(A) Procedures (subject to safeguards pursu-
ant to subparagraph (B)) requiring the State to re-
port periodically to consumer reporting agencies (as
defined in section 603(f) of the Fair Credit Reporting
Act (15 U.S.C. 1681a(f)) the name of any absent par-
ent who is delinquent in the payment of support, and
the amount of overdue support owed by such parent.
663
‘‘(B) Procedures ensuring that, in carrying out
subparagraph (A), information with respect to an ab-
sent parent is reported—
‘‘(i) only after such parent has been af-
forded all due process required under State law,
including notice and a reasonable opportunity to
contest the accuracy of such information; and
‘‘(ii) only to an entity that has furnished
evidence satisfactory to the State that the entity
is a consumer reporting agency.’’.
SEC. 469. LIENS.
Section 466(a)(4) (42 U.S.C. 666(a)(4)) is amended
to read as follows:
‘‘(4) Procedures under which—
‘‘(A) liens arise by operation of law against
real and personal property for amounts of over-
due support owed by an absent parent who re-
sides or owns property in the State; and
‘‘(B) the State accords full faith and credit
to liens described in subparagraph (A) arising in
another State, without registration of the under-
lying order.’’.
664
SEC. 470. STATE LAW AUTHORIZING SUSPENSION OF LI-
CENSES.
Section 466(a) (42 U.S.C. 666(a)), as amended by sec-
tions 415, 417(a), and 423 of this Act, is amended by add-
ing at the end the following new paragraph:
‘‘(15) Procedures under which the State has (and
uses in appropriate cases) authority to withhold or
suspend, or to restrict the use of driver’s licenses, pro-
fessional and occupational licenses, and recreational
licenses of individuals owing overdue support or fail-
ing, after receiving appropriate notice, to comply
with subpoenas or warrants relating to paternity or
child support proceedings.’’.
SEC. 471. DENIAL OF PASSPORTS FOR NONPAYMENT OF
CHILD SUPPORT.
(a) HHS CERTIFICATION PROCEDURE.—
(1) SECRETARIAL RESPONSIBILITY.—Section 452
(42 U.S.C. 652), as amended by section 446, is
amended by adding at the end the following new sub-
section:
‘‘(k)(1) If the Secretary receives a certification by a
State agency in accordance with the requirements of section
454(30) that an individual owes arrearages of child support
in an amount exceeding $5,000 or in an amount exceeding
24 months’ worth of child support, the Secretary shall
transmit such certification to the Secretary of State for ac-
665
tion (with respect to denial, revocation, or limitation of
passports) pursuant to section 471(b) of the Family Self-
Sufficiency Act of 1995.
‘‘(2) The Secretary shall not be liable to an individual
for any action with respect to a certification by a State
agency under this section.’’.
(2) STATE CSE AGENCY RESPONSIBILITY.—Sec-
tion 454 (42 U.S.C. 654), as amended by sections
404(a), 412(b), 413(a), 433, and 444(a), is amend-
ed—
(A) by striking ‘‘and’’ at the end of para-
graph (28);
(B) by striking the period at the end of
paragraph (29) and inserting ‘‘; and’’; and
(C) by adding after paragraph (29) the fol-
lowing new paragraph:
‘‘(30) provide that the State agency will have in
effect a procedure (which may be combined with the
procedure for tax refund offset under section 464) for
certifying to the Secretary, for purposes of the proce-
dure under section 452(k) (concerning denial of pass-
ports) determinations that individuals owe arrearages
of child support in an amount exceeding $5,000 or in
an amount exceeding 24 months’ worth of child sup-
port, under which procedure—
666
‘‘(A) each individual concerned is afforded
notice of such determination and the con-
sequences thereof, and an opportunity to contest
the determination; and
‘‘(B) the certification by the State agency is
furnished to the Secretary in such format, and
accompanied by such supporting documentation,
as the Secretary may require.’’.
(b) STATE DEPARTMENT PROCEDURE FOR DENIAL OF
PASSPORTS.—
(1) IN GENERAL.—The Secretary of State, upon
certification by the Secretary of Health and Human
Services, in accordance with section 452(k) of the So-
cial Security Act, that an individual owes arrearages
of child support in excess of $5,000 or in an amount
exceeding 24 months’ worth of child support, shall
refuse to issue a passport to such individual, and
may revoke, restrict, or limit a passport issued pre-
viously to such individual.
(2) LIMIT ON LIABILITY.—The Secretary of State
shall not be liable to an individual for any action
with respect to a certification by a State agency
under this section.
667
(c) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall become effective October
1, 1996.
Subtitle H—Medical Support
SEC. 475. TECHNICAL CORRECTION TO ERISA DEFINITION
OF MEDICAL CHILD SUPPORT ORDER.
(a) IN GENERAL.—Section 609(a)(2)(B) of the Em-
ployee Retirement Income Security Act of 1974 (29 U.S.C.
1169(a)(2)(B)) is amended—
(1) by striking ‘‘issued by a court of competent
jurisdiction’’;
(2) by striking the period at the end of clause
(ii) and inserting a comma; and
(3) by adding, after and below clause (ii), the
following:
‘‘if such judgment, decree, or order (I) is issued
by a court of competent jurisdiction or (II) is is-
sued through an administrative process estab-
lished under State law and has the force and ef-
fect of law under applicable State law.’’.
(b) EFFECTIVE DATE.—
(1) IN
GENERAL.—The amendments made by
this section shall take effect on the date of the enact-
ment of this Act.
668
(2) PLAN AMENDMENTS NOT REQUIRED UNTIL
JANUARY 1, 1996.—Any amendment to a plan required
to be made by an amendment made by this section
shall not be required to be made before the 1st plan
year beginning on or after January 1, 1996, if—
(A) during the period after the date before
the date of the enactment of this Act and before
such 1st plan year, the plan is operated in ac-
cordance with the requirements of the amend-
ments made by this section; and
(B) such plan amendment applies retro-
actively to the period after the date before the
date of the enactment of this Act and before such
1st plan year.
A plan shall not be treated as failing to be operated
in accordance with the provisions of the plan merely
because it operates in accordance with this para-
graph.
SEC. 476. ENFORCEMENT OF ORDERS FOR HEALTH CARE
COVERAGE.
Section 466(a) (42 U.S.C. 666(a)), as amended by sec-
tions 415, 417(a), 423, and 469 of this Act, is amended
by adding at the end the following new paragraph:
‘‘(16) Procedures under which all child support
orders enforced under this part shall include a provi-
669
sion for the health care coverage of the child, and in
the case in which an absent parent provides such cov-
erage and changes employment, and the new employer
provides health care coverage, the State agency shall
transfer notice of the provision to the employer, which
notice shall operate to enroll the child in the absent
parent’s health plan, unless the absent parent contests
the notice.’’.
Subtitle I—Enhancing Responsibil-
ity 
and 
Opportunity 
for
Nonresidential Parents
SEC. 481. GRANTS TO STATES FOR ACCESS AND VISITATION
PROGRAMS.
Part D of title IV (42 U.S.C. 651–669) is amended
by adding at the end the following new section:
‘‘SEC. 469A. GRANTS TO STATES FOR ACCESS AND VISITA-
TION PROGRAMS.
‘‘(a) IN GENERAL.—The Administration for Children
and Families shall make grants under this section to enable
States to establish and administer programs to support and
facilitate absent parents’ access to and visitation of their
children, by means of activities including mediation (both
voluntary and mandatory), counseling, education, develop-
ment of parenting plans, visitation enforcement (including
monitoring, supervision and neutral drop-off and pickup),
670
and development of guidelines for visitation and alternative
custody arrangements.
‘‘(b) AMOUNT OF GRANT.—The amount of the grant
to be made to a State under this section for a fiscal year
shall be an amount equal to the lesser of—
‘‘(1) 90 percent of State expenditures during the
fiscal year for activities described in subsection (a); or
‘‘(2) the allotment of the State under subsection
(c) for the fiscal year.
‘‘(c) ALLOTMENTS TO STATES.—
‘‘(1) IN GENERAL.—The allotment of a State for
a fiscal year is the amount that bears the same ratio
to the amount appropriated for grants under this sec-
tion for the fiscal year as the number of children in
the State living with only 1 biological parent bears
to the total number of such children in all States.
‘‘(2) MINIMUM
ALLOTMENT.—The Administra-
tion for Children and Families shall adjust allotments
to States under paragraph (1) as necessary to ensure
that no State is allotted less than—
‘‘(A) $50,000 for fiscal year 1996 or 1997;
or
‘‘(B) $100,000 for any succeeding fiscal
year.
671
‘‘(d) NO SUPPLANTATION OF STATE EXPENDITURES
FOR SIMILAR ACTIVITIES.—A State to which a grant is
made under this section may not use the grant to supplant
expenditures by the State for activities specified in sub-
section (a), but shall use the grant to supplement such ex-
penditures at a level at least equal to the level of such ex-
penditures for fiscal year 1995.
‘‘(e) STATE ADMINISTRATION.—Each State to which a
grant is made under this section—
‘‘(1) may administer State programs funded
with the grant, directly or through grants to or con-
tracts with courts, local public agencies, or nonprofit
private entities;
‘‘(2) shall not be required to operate such pro-
grams on a statewide basis; and
‘‘(3) shall monitor, evaluate, and report on such
programs in accordance with regulations prescribed
by the Secretary.’’.
Subtitle J—Effect of Enactment
SEC. 491. EFFECTIVE DATES.
(a) IN GENERAL.—Except as otherwise specifically
provided (but subject to subsections (b) and (c))—
(1) the provisions of this title requiring the en-
actment or amendment of State laws under section
466 of the Social Security Act, or revision of State
673
(2) 5 years after the date of the enactment of this
title.
Amend the title so as to read: ‘‘An Act to enhance
support and work opportunities for families with children,
reduce welfare dependence, and control welfare spend-
ing.’’.
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