‘‘(28) Procedures under which the State shall
systematically place liens on vehicle titles for child
support arrearages determined under a court order
or an order of an administrative process established
under State law, using a method for updating the
value of the lien on a regular basis or allowing for
an expedited inquiry to and response from a govern-
mental payee for proof of the amount of arrears,
with an expedited method for the titleholder or the
individual owing the arrearage to contest the arrear-
age or to request a release upon fulfilling the sup-
port obligation, and under which such a lien has
precedence over all other encumbrances on a vehicle
title other than a purchase money security interest,
and that the individual owed the arrearage may exe-
cute on, seize, and sell the property in accordance
with State law.’’.
SEC. 409. ATTACHMENT OF BANK ACCOUNTS.
Section 466(a) (42 U.S.C. 666(a)), as amended by
section 408 of this Act, is amended by inserting after
paragraph (28) the following:
‘‘(29) Procedures under which—
‘‘(A) amounts on deposit in a bank account
may be seized to satisfy child support arrear-
ages determined under a court order or an
order of an administrative process established
under State law, solely through an administra-
tive process, pending notice to and an expedited
opportunity to be heard from the account hold-
er or holders; and
‘‘(B) if the account holder or holders fail
to successfully challenge the seizure (as deter-
mined under State law), the bank may be re-
quired to pay from the account to the entity
with the right to collect the arrearage the lesser
of—
‘‘(i) the amount of the arrearage; or
‘‘(ii) the amount on deposit in the ac-
count.’’.
SEC. 410. SEIZURE OF LOTTERY WINNINGS, SETTLEMENTS,
PAYOUTS, AWARDS, AND BEQUESTS, AND
SALE OF FORFEITED PROPERTY, TO PAY
CHILD SUPPORT ARREARAGES.
Section 466(a) (42 U.S.C. 666(a)), as amended by
section 409 of this Act, is amended by inserting after
paragraph (29) the following:
‘‘(30) Procedures, in addition to other income
withholding procedures, under which a lien is im-
posed against property with the following effect:
‘‘(A) The distributor of the winnings from
a State lottery or State-sanctioned or tribal-
sanctioned gambling house or casino shall—
‘‘(i) suspend payment of the winnings
from the person otherwise entitled to the
payment until an inquiry is made to and a
response is received from the State child
support enforcement agency as to whether
the person owes a child support arrearage;
and
‘‘(ii) if there is such an arrearage,
withhold from the payment the lesser of
the amount of the payment or the amount
of the arrearage, and pay the amount with-
held to the agency for distribution.
‘‘(B) The person required to make a pay-
ment under a policy of insurance or a settle-
ment of a claim made with respect to the policy
shall—
‘‘(i) suspend the payment until an in-
quiry is made to and a response received
from the agency as to whether the person
otherwise entitled to the payment owes a
child support arrearage; and
‘‘(ii) if there is such an arrearage,
withhold from the payment the lesser of
the amount of the payment or the amount
of the arrearage, and pay the amount with-
held to the agency for distribution.
‘‘(C) The payor of any amount pursuant to
an award, judgment, or settlement in any ac-
tion brought in Federal or State court shall—
‘‘(i) suspend the payment of the
amount until an inquiry is made to and a
response is received from the agency as to
whether the person otherwise entitled to
the payment owes a child support arrear-
age; and
‘‘(ii) if there is such an arrearage,
withhold from the payment the lesser of
the amount of the payment or the amount
of the arrearage, and pay the amount with-
held to the agency for distribution.
‘‘(D) If the State seizes property forfeited
to the State by an individual by reason of a
criminal conviction, the State shall—
‘‘(i) hold the property until an inquiry
is made to and a response is received from
the agency as to whether the individual
owes a child support arrearage; and
‘‘(ii) if there is such an arrearage, sell
the property and, after satisfying the
claims of all other private or public claim-
ants to the property and deducting from
the proceeds of the sale the attendant costs
(such as for towing, storage, and the sale),
pay the lesser of the remaining proceeds or
the amount of the arrearage directly to the
agency for distribution.
‘‘(E) Any person required to make a pay-
ment in respect of a decedent shall—
‘‘(i) suspend the payment until an in-
quiry is made to and a response received
from the agency as to whether the person
otherwise entitled to the payment owes a
child support arrearage; and
‘‘(ii) if there is such an arrearage,
withhold from the payment the lesser of
the amount of the payment or the amount
of the arrearage, and pay the amount with-
held to the agency for distribution.’’.
SEC. 411. FRAUDULENT TRANSFER PURSUIT.
Section 466(a) (42 U.S.C. 666(a)), as amended by
section 410 of this Act, is amended by inserting after
paragraph (30) the following:
‘‘(31) Procedures requiring that, in any case re-
lated to child support, any transfer of property by
an individual who owes a child support arrearage
shall be presumed to be made with the intent to
avoid payment of the arrearage, and may be rebut-
ted by evidence to the contrary.’’.
SEC. 412. FULL IRS COLLECTION.
(a) SENSE OF THE CONGRESS.—It is the sense of the
Congress that the Commissioner of the Internal Revenue
Services should instruct the field offices and agents of the
Internal Revenue Service to give a high priority to re-
quests for the use of full collection in delinquent child sup-
port cases, and to set uniform standards for full collection
to ensure its expeditious and effective implementation.
(b) SIMPLIFIED PROCEDURE.—The Secretary of the
Treasury, in consultation with the Secretary of Health and
Human Services, shall by regulation simplify the full col-
lection process under section 6305 of the Internal Revenue
Code of 1986 and reduce the amount of child support ar-
rearage needed before an individual may apply for collec-
tion under such section.
SEC. 413. TAX REFUND OFFSET PROGRAM EXPANDED TO
COVER NON-AFDC POST-MINOR CHILDREN.
Section 464(c) (42 U.S.C. 664(c)) is amended—
(1) by striking ‘‘(1) Except as provided in para-
graph (2), as’’ and inserting ‘‘As’’;
(2) by inserting ‘‘(whether or not a minor)’’
after ‘‘a child’’ each place such term appears; and
(3) by striking paragraphs (2) and (3).
SEC. 414. ATTACHMENT OF PUBLIC AND PRIVATE RETIRE-
MENT FUNDS.
Section 466(a) (42 U.S.C. 666(a)), as amended by
section 411 of this Act, is amended by inserting after
paragraph (31) the following:
‘‘(32) Procedures under which an individual
owed a child support arrearage (determined under a
court order or an order of an administrative process
established under State law) may, notwithstanding
section 401(a)(13) of the Internal Revenue Code of
1986, attach any interest in any public or private re-
tirement plan of the individual who owes the sup-
port, without the requirement of a separate court
order, and with notice and an expedited hearing pro-
vided if requested by the individual who owes the
support.’’.
SEC. 415. REPORTING OF CHILD SUPPORT ARREARAGES TO
CREDIT BUREAUS.
Section 466(a)(7)(A) (42 U.S.C. 666(a)(7)(A)) is
amended by striking ‘‘$1,000’’ and inserting ‘‘the amount
of the monthly support obligation’’.
SEC. 416. STATUTES OF LIMITATION.
(a) IN
GENERAL.—Section 466(a) (42 U.S.C.
666(a)), as amended by section 414 of this Act, is amend-
ed by inserting after paragraph (32) the following:
‘‘(33) Procedures which permit the enforcement
of any child support order until the child attains at
least 30 years of age.’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to orders entered before, on, and
after the date of the enactment of this Act.
SEC. 417. INTEREST.
Section 466(a) (42 U.S.C. 666(a)), as amended by
section 416(a) of this Act, is amended by inserting after
paragraph (33) the following:
‘‘(34) Procedures under which the State child
support enforcement agency must assess and collect
interest on all child support judgments, at the rate
determined for interest on money judgments, in ad-
dition to any late payment fee imposed by the State
under section 454(21).’’.
SEC. 418. BANKRUPTCY.
(a) DEFINITION.—Section 101 of title 11, United
States Code, is amended by inserting after paragraph (12)
the following:
‘‘(12a) ‘debt for child support’ means a debt to
a child for maintenance for or support of the child
within the meaning of section 523(a)(5).’’.
(b) EXCEPTION FROM AUTOMATIC STAY.—Section
362(b) of such title is amended—
(1) by inserting ‘‘(A)’’ after ‘‘(2);
(2) by adding ‘‘or’’ after the semicolon; and
(3) by adding at the end the following new
paragraph:
‘‘(B) under subsection (a), of the commence-
ment or continuation of a civil action or administra-
tive proceeding against the debtor—
‘‘(i) to establish parentage;
‘‘(ii) to establish, review, adjust, or modify
a judgment or order creating a debt for child
support; or
‘‘(iii) to enforce or collect on a judgment or
order issued in such an action or proceeding;’’.
(c) TREATMENT OF DEBT FOR CHILD SUPPORT IN
PROCEEDINGS UNDER CHAPTERS 11, 12, AND 13.—
(1) CHAPTER 11.—Section 1123(a) of such title
is amended—
(A) by striking ‘‘and’’ at the end of para-
graph (6);
(B) by striking the period at the end of
paragraph (7) and inserting ‘‘; and’’; and
(C) by adding at the end the following new
paragraph:
‘‘(8) provide for the full payment when due of
debts for child support, unless the parent in custody
or guardian of the child agrees otherwise.’’.
(2) CHAPTER 12.—Section 1222(a) of such title
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) provide for the full payment when due of
debts for child support, unless the parent in custody
or guardian of the child agrees otherwise.’’.
(3) CHAPTER 13.—Section 1322(a) of such title
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) provide for the full payment when due of
debts for child support, unless the parent in custody
or guardian of the child agrees otherwise.’’.
(d) ASSERTION OF CLAIM FOR CHILD SUPPORT.—
(1) IN GENERAL.—Subchapter I of chapter 5 of
such title is amended by adding at the end the fol-
lowing:
‘‘§ 511. Assertion of claim for child support
‘‘(a) IN GENERAL.—A claim for payment of a debt
for child support may be asserted by the filing of a claim
form that describes the debt.
‘‘(b) FEE.—No fee shall be charged for the filing of
a claim described in subsection (a).
‘‘(c) REQUIREMENTS
FOR APPEARANCE.—A claim
described in subsection (a) may be made in any court by
a person appearing—
‘‘(1) in proper person; or
‘‘(2) through an attorney admitted to practice
in any district court, without the attorney’s being re-
quired to meet any admission requirements other
than those applicable in the district in which the at-
torney is admitted to practice.’’.
(2) BANKRUPTCY RULES.—Pursuant to section
2705 of title 28, United States Code, the Bank-
ruptcy Rules shall be amended as necessary to im-
plement section 511 of title 11, United States Code,
as added by paragraph (1) of this subsection; until
the Bankruptcy Rules are so amended, any provision
of the Bankruptcy Rules or the rules of any court
that is inconsistent with that section is superseded
by that section.
(e) CLARIFICATION OF THE NONDISCHARGEABILITY
OF STATE PUBLIC DEBTS AND ASSIGNED CHILD SUP-
PORT BASED
ON
THE PROVISION
OF EXPENDITURES
UNDER PARTS A AND E OF TITLE IV OF THE SOCIAL
SECURITY ACT.—Section 523 of title 11, United States
Code, is amended by adding at the end the following:
‘‘(f) For the purposes of subsection (a)(5), a debt to
a child of the debtor for maintenance for or support of
the child includes State public debts and assigned child
support based on the provision of expenditures under
parts A and E of title IV of the Social Security Act (43
U.S.C. 401 et seq. and 470 et seq.).’’.
SEC. 419. FEDERAL GOVERNMENT COOPERATION IN EN-
FORCEMENT OF SUPPORT OBLIGATIONS OF
MEMBERS AND FORMER MEMBERS OF THE
ARMED FORCES.
(a) AVAILABILITY OF CURRENT LOCATOR INFORMA-
TION.—
(1) MAINTENANCE
OF
ADDRESS
INFORMA-
TION.—Each worldwide personnel locator service of
the Armed Forces and each personnel locator service
of the Armed Forces maintained for a military in-
stallation shall include the residential address of
each member of the Armed Forces listed in such
service. Within 30 days after a change of duty sta-
tion or residential address of a member listed in a
locator service, the Secretary concerned shall update
the locator service to indicate the new residential ad-
dress of the member.
(2) AVAILABILITY OF INFORMATION.—The Sec-
retary of Defense shall prescribe regulations to make
information regarding the residential address of a
member of the Armed Forces available, on request,
to any authorized person for the purposes of part D
of title IV of the Social Security Act.
(3) DEFINITIONS.—For purposes of this sub-
section:
(A) The term ‘‘authorized person’’ has the
meaning given that term in section 453(c) of
the Social Security Act (42 U.S.C. 653(c)).
(B) The term ‘‘Secretary concerned’’ has
the meaning given that term in section
101(a)(9) of title 10, United States Code.
(b) FACILITATING THE GRANTING OF LEAVE FOR
ATTENDANCE AT HEARINGS.—
(1) REGULATIONS REQUIRED.—The Secretary
concerned shall prescribe regulations to facilitate the
granting of a leave of absence to a member of the
Armed Forces under the jurisdiction of that Sec-
retary when necessary for the member to attend a
hearing of a court that is conducted in connection
with a civil action—
(A) to determine whether the member is a
natural parent of a child; or
(B) to determine an obligation of the mem-
ber to provide child support.
(2) WAIVER AUTHORITY.—The regulations pre-
scribed under paragraph (1) may authorize a waiver
of the applicability of the regulations to a member
of the Armed Forces when—
(A) the member is serving in an area of
combat operations; or
(B) such a waiver is otherwise necessary in
the national security interest of the United
States.
(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
meaning given such term in section 462 of the
Social Security Act (42 U.S.C. 662).
(C) The term ‘‘Secretary concerned’’ has
the meaning given that term in section
101(a)(9) of title 10, United States Code.
(c) PAYMENT OF MILITARY RETIRED PAY IN COM-
PLIANCE WITH COURT ORDERS.—
(1) DATE
OF
CERTIFICATION
OF
COURT
ORDER.—Section 1408 of title 10, United States
Code, is amended—
(A) by redesignating subsection (i) as sub-
section (j); and
(B) by inserting after subsection (h) the
following new subsection:
‘‘(i) CERTIFICATION DATE.—It is not necessary that
the date of a certification of the authenticity or complete-
ness of a copy of a court order for child support received
by the Secretary concerned for the purposes of this section
be recent in relation to the date of receipt.’’.
(2) PAYMENTS
CONSISTENT
WITH
ASSIGN-
MENTS OF RIGHTS TO STATES.—
(A) AUTHORITY.—Subsection (d)(1) of
such section is amended by inserting after the
first sentence the following: ‘‘In the case of a
spouse or former spouse who, pursuant to sec-
tion 402(a)(26) of the Social Security Act (42
U.S.C. 602(26)), assigns to a State the rights
of the spouse or former spouse to receive sup-
port, the Secretary concerned may make the
child support payments referred to in the pre-
ceding sentence to that State in amounts con-
sistent with the assignment of rights.’’.
(B) RULE OF CONSTRUCTION.—Subsection
(c)(2) of such section is amended—
(i) by inserting after the first sentence
the following: ‘‘The second sentence of sub-
section (d)(1) shall not be construed to
create any such right, title, or interest.’’;
(ii) by inserting ‘‘(A)’’ after ‘‘(2)’’;
and
(iii) by designating the last sentence
as subparagraph (B) and conforming the
margins accordingly.
(3) ARREARAGES OWED BY MEMBERS OF THE
UNIFORMED
SERVICES.—Part D of title IV (42
U.S.C. 651–669) is amended by inserting after sec-
tion 465 the following:
‘‘SEC. 465A. PAYMENT OF CHILD SUPPORT ARREARAGES
OWED BY MEMBERS OF THE UNIFORMED
SERVICES.
‘‘Any authority, requirement, or procedure provided
in this part or section 1408 of title 10, United States
Code, that applies to the payment of child support owed
by a member of the uniformed services (as defined in sec-
tion 101 of title 37, United States Code) shall apply to
the payment of child support arrearages as well as to
amounts of child support that are currently due.’’.
SEC. 420. STATES REQUIRED TO ENACT THE UNIFORM
INTERSTATE FAMILY SUPPORT ACT.
(a) IN GENERAL.—Section 466 (42 U.S.C. 666) is
amended by adding at the end the following:
‘‘(f) In order to satisfy section 454(20)(A), each
State must have in effect laws which—
‘‘(1) adopt verbatim the officially approved ver-
sion of the Uniform Interstate Family Support Act
adopted by the National Conference of Commis-
sioners on Uniform State Laws in August 1992; and
‘‘(2) require the courts of the State to recognize
according to its terms an order issued by a court of
any other State adjudicating parentage of an indi-
vidual over whom the court of such other State has
exercised personal jurisdiction.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply to payments under part D of
title IV of the Social Security Act for calendar quarters
ending 2 or more years after the date of the enactment
of this Act.
SEC. 421. IRS RECONCILIATION PROCESS.
(a) IN GENERAL.—The Comptroller General and the
Secretary of the Treasury shall jointly conduct a study
of the feasibility of a procedure under which—
(1) past-due child support is collected from the
taxpayer owing such support by increasing the tax-
payer’s tax liability for a taxable year by the past-
due child support for such taxable year, and
(2) the Internal Revenue Service remits the col-
lected past-due child support to the individual or
governmental agency entitled to receive it.
(b) FORM.—As part of the study, the Secretary of
the Treasury shall develop an appropriate form which
could be filed with a taxpayer’s income tax return and
which shows—
(1) the child support required to be paid by the
taxpayer during the taxable year,
(2) the unpaid amount of such support as of
the time of filing the taxpayer’s income tax return
for such taxable year, and
(3) the name and address of the individual or
governmental agency entitled to receive any payment
of such unpaid amount.
(c) REPORT.—The report of such study shall be sub-
mitted to Congress not later than 1 year after the date
of the enactment of this Act.
SEC. 422. DENIAL OF PASSPORTS TO NONCUSTODIAL PAR-
ENTS SUBJECT TO STATE ARREST WARRANTS
IN CASES OF NONPAYMENT OF CHILD SUP-
PORT.
The Secretary of State is authorized to refuse a pass-
port or revoke, restrict, or limit a passport in any case
in which the Secretary of State determines or is informed
by competent authority that the applicant or passport
holder is a noncustodial parent who is the subject of an
outstanding State warrant of arrest for nonpayment of
child support, where the amount in controversy is not less
than $10,000.
SEC. 423. DENIAL OF FEDERAL BENEFITS, LOANS, GUARAN-
TEES, AND EMPLOYMENT TO CERTAIN PER-
SONS WITH LARGE CHILD SUPPORT ARREAR-
AGES.
(a) BENEFITS, LOANS, AND GUARANTEES.—Not-
withstanding any other provision of law, each agency or
instrumentality of the Federal Government may not,
under any program that the agency or instrumentality su-
pervises or administers, provide a benefit to, make a loan
to, or provide any guarantee for the benefit of, any per-
son—
(1) whose child support arrearages, determined
under a court order or an order of an administrative
process established under State law, exceed $1,000;
and
(2) who is not in compliance with a plan or an
agreement to repay the arrearages.
(b) EMPLOYMENT.—
(1) IN GENERAL.—Notwithstanding any other
provision of law, an individual shall be considered in-
eligible to accept employment in a position in the
Federal Government if—
(A) such individual has child support ar-
rearages, determined under a court order or an
order of an administrative process established
under State law, exceeding $1,000; and
(B) such individual is not in compliance
with a plan or agreement to repay the arrear-
ages.
(2) REGULATIONS.—Regulations to carry out
paragraph (1) shall—
(A) with respect to positions in the execu-
tive branch, be prescribed by the President (or
his designee);
(B) with respect to positions in the legisla-
tive branch, be prescribed jointly by the Presi-
dent pro tempore of the Senate and the Speak-
er of the House of Representatives (or their
designees); and
(C) with respect to positions in the judicial
branch, be prescribed by the Chief Justice of
the United States (or his designee).
(3) CHILD SUPPORT DEFINED.—For purposes
of this subsection, the term ‘‘child support’’ has the
meaning given such term in section 462 of the So-
cial Security Act.
SEC. 424. STATES REQUIRED TO ORDER COURTS TO ALLOW
ASSIGNMENT OF LIFE INSURANCE BENEFITS
TO SATISFY CHILD SUPPORT ARREARAGES.
Section 466(a) (42 U.S.C. 666(a)), as amended by
section 417 of this Act, is amended by inserting after
paragraph (34) the following:
‘‘(35) Procedures allowing State courts to—
‘‘(A) order the issuer of a life insurance
policy to change the beneficiary provisions of
the policy to effect an assignment of the bene-
fits payable to a beneficiary under the policy, in
whole or in part, to a child to satisfy a child
support arrearage, determined under a court
order or an order of an administrative process
established under State law, owed by the bene-
ficiary with respect to the child; and
‘‘(B) prohibit the sale, assignment, or
pledge as collateral of the policy, in whole or in
part, by the beneficiary of the policy.’’.
SEC. 425. INTERESTS IN JOINTLY HELD PROPERTY SUB-
JECT TO ASSIGNMENT TO SATISFY CHILD
SUPPORT ARREARAGES.
Section 466(a) (42 U.S.C. 666(a)), as amended by
section 424 of this Act, is amended by inserting after
paragraph (35) the following:
‘‘(36) Procedures allowing State courts to order
the assignment of an interest in jointly held property
to an individual owed a child support arrearage (de-
termined under a court order or an order of an ad-
ministrative process established under State law) by
a holder of an interest in the property, to the extent
of the arrearage.’’.
SEC. 426. INTERNATIONAL CHILD SUPPORT ENFORCE-
MENT.
(a) SENSE OF THE CONGRESS THAT THE UNITED
STATES SHOULD RATIFY THE UNITED NATIONS CON-
VENTION OF 1956.—It is the sense of the Congress that
the United States should ratify the United Nations Con-
vention of 1956.
(b) TREATMENT OF INTERNATIONAL CHILD SUP-
PORT CASES AS INTERSTATE CASES.—Section 454 (42
U.S.C. 654), as amended by section 301 of this Act, is
amended—
(1) by striking ‘‘and’’ at the end of paragraph
(26);
(2) by striking the period at the end of para-
graph (27) and inserting ‘‘; and’’; and
(3) by inserting after paragraph (27) the fol-
lowing:
‘‘(28) provide that the State must treat inter-
national child support cases in the same manner as
the State treats interstate child support cases.’’.
TITLE V—COLLECTION AND
DISTRIBUTION
SEC. 501. PRIORITIES IN DISTRIBUTION OF COLLECTED
CHILD SUPPORT.
(a) STATE DISTRIBUTION PLAN.—Section 457 (42
U.S.C. 657) is amended by adding at the end the follow-
ing:
‘‘(e) Beginning on September 1, 1994, the amounts
that a State collects as child support (including interest)
pursuant to a plan approved under this part, other than
amounts so collected through a tax refund offset, shall
(subject to subsection (d)) be paid—
‘‘(1) first to the individual owed the support or
(if the individual assigned to the State the payment
of the support) to the State, to the extent necessary
to satisfy the current month’s support obligation;
‘‘(2) then to the individual owed the support, to
the extent necessary to satisfy any arrearage that
accrued after assistance with respect to the child
under this title ended;
‘‘(3) then, at the option of the State—
‘‘(A) to the individual owed the support, to
the extent necessary to satisfy any arrearage
that accrued before assistance was provided
with respect to the child under this title; or
‘‘(B) to the State, to the extent necessary
to reimburse the State for assistance provided
with respect to the child under this title (with-
out interest); and
‘‘(4) then to other States, to the extent nec-
essary to reimburse such other States for assistance
provided with respect to the child under this title
(without interest), in the order in which such assist-
ance was provided.’’.
(b) STUDY AND PILOT PROJECTS.—
(1) IN GENERAL.—The Comptroller General of
the United States shall conduct studies and pilot
projects of systems under which States would be re-
quired to pay the child support collected pursuant to
a State plan approved under part D of title IV of
the Social Security Act to the individuals to whom
the support is owed before making any payment to
reimburse any State for assistance provided with re-
spect to the child under part A of such title.
(2) REPORT
TO
THE
CONGRESS.—Within 3
years after the date of the enactment of this Act, the
Comptroller General shall submit to the Committee
on Ways and Means of the House of Representatives
and the Committee on Finance of the Senate a re-
port on each study and pilot project conducted pur-
suant to paragraph (1), including a cost-benefit
analysis and an analysis of the costs that would be
avoided under the program of aid to families with
dependent children under part A of title IV of the
Social Security Act, the program of medical assist-
ance under title XIX of such Act, and the food
stamp program under the Food Stamp Act of 1977,
if the various systems studied were implemented.
(3) SENSE OF THE CONGRESS.—It is the sense
of the Congress that, if the report submitted pursu-
ant to paragraph (2) demonstrates that there would
be a net benefit to society if a system described in
paragraph (1) were implemented, then Federal law
should provide that States implement the system.
(c) REVISION OF FEDERAL INCOME TAX REFUND
OFFSET.—Section 6402 of the Internal Revenue Code of
1986 (relating to authority to make credits or refunds)
is amended—
(1) in subsection (c), by striking ‘‘after any
other reductions allowed by law (but before’’ and in-
serting ‘‘before any other reductions allowed by law
(and before’’; and
(2) in subsection (d), by striking ‘‘with respect
to past-due support collected pursuant to an assign-
ment under section 402(a)(26) of the Social Security
Act’’.
(d) $50 DISREGARDED
FOR ALL MEANS-TESTED
PROGRAMS.—Section 457(b)(1) (42 U.S.C. 657(b)(1)) is
amended by inserting ‘‘under this part or under any other
Federal program which determines eligibility for or the
amount of assistance based on the income or assets of the
applicant for or recipient of the assistance’’ after ‘‘during
such month’’.
(e) FILL-THE-GAP POLICIES ALLOWED.—Section
402(a)(28) (42 U.S.C. 602(a)(28)) is amended by striking
the open parenthesis and all that follows through the close
parenthesis.
SEC. 502. STATE CLAIMS AGAINST NONCUSTODIAL PARENT
LIMITED TO ASSISTANCE PROVIDED TO THE
CHILD.
Section 466(a) (42 U.S.C. 666(a)), as amended by
section 425 of this Act, is amended by inserting after
paragraph (36) the following:
‘‘(37)(A) Procedures under which any claims
the State may have against a noncustodial parent
for a child’s portion of the assistance provided under
a State plan approved under part A shall not exceed
the amount specified as child support under a court
or administrative order.
‘‘(B) As used in subparagraph (A), the term
‘child’s portion’ means the assistance that would
have been provided with respect to the child if the
needs of the caretaker relative of the child had not
been taken into account in making the determination
with respect to the child’s family under section
402(a)(7).’’.
SEC. 503. FEES FOR NON-AFDC CLIENTS.
(a) IN
GENERAL.—Section 454(6) (42 U.S.C.
654(6)) is amended—
(1) in subparagraph (B), by striking ‘‘or recov-
ered’’ and all that follows through ‘‘program)’’;
(2) in subparagraph (C), by inserting ‘‘on the
parent who owes the child or spousal support obliga-
tion involved’’ after ‘‘imposed’’;
(3) in subparagraph (D), by striking ‘‘individ-
ual who’’ and inserting ‘‘the noncustodial parent if
the child whose parentage is to be determined
through the tests’’; and
(4) in subparagraph (E), by striking all that
follows ‘‘may be collected’’ and inserting ‘‘from the
parent who owes the child or spousal support obliga-
tion involved, but only after all current and past-due
support and interest charges have been collected’’.
(b) PUBLICATION
OF FEE SCHEDULES.—Section
454(10) (42 U.S.C. 654(10)) is amended by inserting ‘‘,
and shall publish guidelines and schedules of fees which
may be imposed under paragraph (6), and which shall be
reasonable’’ before the semicolon.
SEC. 504. COLLECTION AND DISBURSEMENT POINTS FOR
CHILD SUPPORT.
Section 454 (42 U.S.C. 654), as amended by section
427(b) of this Act, is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(27);
(2) by striking the period at the end of para-
graph (28) and inserting ‘‘; and’’; and
(3) by inserting after paragraph (28) the fol-
lowing:
‘‘(29) provide for only 1 location, or several
local or regional locations for the collection of, ac-
counting for, and disbursement of child support in
cases enforced under the State plan under this
part.’’.
SEC. 505. SENSE OF THE CONGRESS THAT STATES SHOULD
ENCOURAGE PARENTS TO USE THE STATE
CHILD SUPPORT AGENCY TO COLLECT AND
PROCESS CHILD SUPPORT PAYMENTS.
It is the sense of the Congress that States should en-
courage all parents to use the state child support agency
to process and distribute child support payments in order
to establish an official record of such payments.
TITLE VI—FEDERAL ROLE
SEC. 601. PLACEMENT AND ROLE OF THE OFFICE OF CHILD
SUPPORT ENFORCEMENT.
Section 452(a) (42 U.S.C. 652(a)), as amended by
section 401(b) of this Act, is amended—
(1) in the matter preceding paragraph (1), by
striking ‘‘, under the direction’’ and all that follows
through ‘‘and who’’ and inserting ‘‘which shall be
known as the Office of Child Support Enforcement,
shall be under the direction of an Assistant Sec-
retary appointed by the President with the advice
and consent of the Senate, and shall have its own
legal counsel. The Assistant Secretary shall report
directly to the Secretary and’’;
(2) in paragraph (10)—
(A) in subparagraph (A), by inserting
‘‘using a methodology that reflects cost-avoid-
ance as well as cost-recovery’’ after ‘‘the States
and the Federal Government’’;
(B) by redesignating subparagraphs (H)
and (I) as subparagraphs (I) and (J), respec-
tively; and
(C) by inserting after subparagraph (G)
the following:
‘‘(H) the budgetary allocation of the $50
pass through equally between part A and this
part;’’;
(3) by striking ‘‘and’’ at the end of paragraph
(13);
(4) by striking the period at the end of para-
graph (14) and inserting ‘‘; and’’; and
(5) by inserting after paragraph (14) the fol-
lowing:
‘‘(15) initiate and actively pursue with other
Federal agencies, such as the Department of De-
fense, coordinated efforts on Federal legislation.’’.
SEC. 602. TRAINING.
(a) 
FEDERAL
TRAINING
ASSISTANCE.—Section
452(a)(7) (42 U.S.C. 652(a)(7)) is amended by inserting
‘‘and training’’ after ‘‘technical assistance’’.
(b) STATE TRAINING PROGRAM.—Section 454 (42
U.S.C. 654), as amended by section 504 of this Act, is
amended—
(1) by striking ‘‘and’’ at the end of paragraph
(28);
(2) by striking the period at the end of para-
graph (29) and inserting ‘‘; and’’; and
(3) by inserting after paragraph (29) the fol-
lowing:
‘‘(30) provide that the State will develop and
implement a training program under which training
is to be provided not less frequently than annually
to all personnel performing functions under the
State plan.’’.
(c) 
REPORT.—Section 
452(a)(10) 
(42 
U.S.C.
652(a)(10)), as amended by section 601(2) of this Act,
is amended by redesignating subparagraphs (I) and (J)
as subparagraphs (J) and (K), respectively, and by insert-
ing after subparagraph (H) the following:
‘‘(I) the training activities at the Federal
and State levels, the training audit, and the
amounts expended on training;’’.
SEC. 603. STAFFING.
(a) STUDIES.—The Secretary of Health and Human
Services shall conduct and, not later than 1 year after the
100
date of the enactment of this Act, complete staffing stud-
ies for each State child support enforcement program, in-
cluding each agency and court involved in the child sup-
port process.
(b) REPORT TO THE CONGRESS.—Within 90 days
after the end of the 1-year period described in subsection
(a), the Secretary shall report to the Committee on Ways
and Means of the House of Representatives and the Com-
mittee on Finance of the Senate, and to each State, the
results of the studies required by subsection (a).
(c) IMPLEMENTATION.—The Secretary of Health and
Human Services shall reduce by 2 percent the amount oth-
erwise payable to a State pursuant to section 455(a)(1)(A)
of the Social Security Act for any calendar quarter ending
2 or more years after the State receives a report transmit-
ted pursuant to subsection (b), if the Secretary determines
that, during the quarter, the State has not implemented
the staffing levels recommended in the report.
SEC. 604. DEMONSTRATION PROJECTS TO TEST ALTER-
NATIVE APPROACHES TO INCENTIVE FUND-
ING FOR STATE CHILD SUPPORT PROGRAMS.
(a) IN GENERAL.—The Secretary of Health and
Human Services shall authorize 3 States to carry out dem-
onstration projects under which—
101
(1) the State is to implement the State plan ap-
proved under part D of title IV of the Social Secu-
rity Act so as to promote quality control and provide
incentives for enforcement of health care support;
(2) in lieu of applying subsections (b) and (c)
of section 458 of such Act to the States, the incen-
tive payment to a State for a fiscal year shall be—
(A) not less than 65 percent of the total
amount expended to carry out the plan during
the fiscal year if the performance of the State
in implementing the plan meets such minimum
performance standards as the Secretary shall
prescribe by regulation; and
(B) not more than 90 percent of such total
amount if the performance significantly exceeds
the standards; and
(3) a payment to a State under this subsection
is deemed a payment to the State under such section
458.
(b) REPORT.—The Secretary of Health and Human
Services and the Comptroller General of the United States
shall evaluate each demonstration project carried out
under subsection (a) and report to the Committee on Ways
and Means of the House of Representatives and the Com-
102
mittee on Finance of the Senate the results and their rec-
ommendations.
(c) HEALTH CARE SUPPORT INCLUDED IN INCEN-
TIVE PAYMENT FORMULA.—Section 458 (42 U.S.C. 658)
is amended by adding at the end the following:
‘‘(f) For purposes of this section, the term ‘support’
includes premiums paid for health insurance coverage pur-
suant to a support order.’’.
(d) MINIMUM STATE FUNDING OF CHILD SUPPORT
ACTIVITIES.—The Secretary of Health and Human Serv-
ices shall reduce by 2 percent the amount otherwise pay-
able to a State pursuant to section 455(a)(1)(A) of the
Social Security Act for any of the 5 fiscal years that begin
after the date of the enactment of this Act (in this sub-
section referred to as ‘‘investment years’’), if the Secretary
determines that, during the investment year, the State has
not expended on the program under the State plan ap-
proved under part D of title IV of such an amount equal
to the sum of—
(1) the amount the State expends on the pro-
gram during the fiscal year in which this Act be-
comes law (in this subsection referred to as the
‘‘base year’’); plus
103
(2)(A) in the case of the 1st investment year,
60 percent of the amount paid to the State under
section 458 of such Act for the base year;
(B) in the case of the 2nd investment year, 70
percent of the amount so paid to the State;
(C) in the case of the 3rd investment year, 80
percent of the amount so paid to the State;
(D) in the case of the 4th investment year, 90
percent of the amount so paid to the State; and
(E) in the case of the 5th investment year, 100
percent of the amount so paid to the State.
(e) SENSE OF THE CONGRESS.—It is the sense of the
Congress that States should not use amounts paid to the
States pursuant to part D of title IV of the Social Security
Act, which are reinvested in child support activities, to
supplant State funding of such activities.
SEC. 605. CHILD SUPPORT DEFINITION.
(a) IN GENERAL.—Section 452 (42 U.S.C. 652) is
amended by adding at the end the following:
‘‘(j) For purposes of this part, the term ‘child sup-
port’ shall have the meaning given such term in section
462(b).’’.
(b) CONFORMING AMENDMENTS.—Section 462(b)
(42 U.S.C. 662(b)) is amended—
104
(1) by inserting ‘‘and lump sum’’ after ‘‘peri-
odic’’, and
(2) by inserting ‘‘child care,’’ after ‘‘clothing,’’.
SEC. 606. AUDITS.
(a) STUDY.—
(1) CONTRACT AUTHORITY.—The Secretary of
Health and Human Services shall enter into a con-
tract for a study of the audit process of the Office
of Child Support Enforcement to develop criteria
and methodology for auditing the activities of State
child support enforcement agencies pursuant to part
D of title IV of the Social Security Act.
(2) DESIGN OF STUDY.—The study shall be de-
signed to—
(A) identify ways to improve the auditing
process, including by—
(i) reducing the resources required to
perform the audit;
(ii) simplifying procedures for States
to follow in obtaining samples;
(iii) studying the feasibility of sam-
pling cases for needed action rather than
requiring sampling plans for each audit
criterion; and
105
(iv) a more timely audit period of re-
view; and
(B) develop a penalty process which—
(i) focuses on improving the delivery
of child support services and not harming
families;
(ii) uses a penalty not tied to any re-
duction of funds payable to States under
part A of title IV of the Social Security
Act; and
(iii) should include the escrowing of
funds withheld as penalties for use by
States to improve their child support pro-
grams in a manner approved by the Sec-
retary of Health and Human Services.
(b) REPORT.—Not later than 90 days after comple-
tion of the study required by subsection (a), the Secretary
of Health and Human Services shall submit to the Com-
mittee on Ways and Means of the House of Representa-
tives and the Committee on Finance of the Senate a report
on the results of the study.
(c) LIMITATION ON CASES INCLUDED IN AUDITS.—
Section 452(a)(4) (42 U.S.C. 652(a)(4)) is amended—
(1) by inserting ‘(A) after ‘‘(4);
(2) by adding ‘‘and’’ at the end; and
106
(3) by adding after and below the end the fol-
lowing:
‘‘(B) notwithstanding subparagraph (A), each
audit under subparagraph (A) shall be limited to
cases open on the date the audit begins and cases
closed within 180 days before such date, unless the
Secretary has determined, in accordance with regula-
tions, that there is a need for a longitudinal review
of case handling that includes cases that have been
closed for more than 180 days;’’.
SEC. 607. CHILD SUPPORT ASSURANCE DEMONSTRATION
PROJECTS.
(a) SENSE OF THE CONGRESS.—It is the sense of the
Congress that children should have a consistent source of
income to meet their education and medical needs.
(b) SENSE OF THE CONGRESS.—It is the sense of
the Congress that the provision of public assistance to a
custodial parent for the support of a child with respect
to whom a noncustodial parent owes child support does
not absolve the noncustodial parent of the obligation to
provide such support.
(c) SENSE OF THE CONGRESS.—It is the sense of the
Congress that the States must continue to vigorously pur-
sue efforts to establish parentage, and establish and en-
force child support obligations.
107
(d) CHILD SUPPORT ASSURANCE DEMONSTRATION
PROJECTS.—
(1) PURPOSE.—The purpose of this subsection
is to test the feasibility and utility of ensuring that
custodial parents owed child support have a consist-
ent source of income for the support of their chil-
dren, by authorizing States to conduct projects dem-
onstrating various methods for doing so.
(2) CONSIDERATION OF APPLICATIONS.—
(A) 
IN
GENERAL.—The 
Secretary 
of
Health and Human Services (in this section re-
ferred to as the ‘‘Secretary’’) shall consider ap-
plications to conduct demonstration projects
under this subsection received only from eligible
States.
(B) ELIGIBLE STATE DEFINED.—For pur-
poses of subparagraph (A), a State is an eligi-
ble State if—
(i) the child support collection ratio
for the State for the most recent fiscal
year for which such information is avail-
able exceeds the child support collection
ratio for the United States for the fiscal
year; or
108
(ii) AFDC support collection ratio for
the State for the most recent fiscal year
for which such information is available ex-
ceeds the AFDC support collection ratio
for the United States for the fiscal year.
(C) 
CHILD
SUPPORT
COLLECTION
RATIO.—As used in subparagraph (B), the term
‘‘child support collection ratio’’ means, with re-
spect to a fiscal year—
(i) for a State—
(I) the total amount expended by
the State during the fiscal year for
the operation of the plan approved
under section 454 of the Social Secu-
rity Act; divided by
(II) the total amount of support
collected by the State during the fiscal
year in all cases under part D of title
IV of such Act; and
(ii) for the United States—
(I) the total amount expended by
the States during the fiscal year for
the operation of the plans approved
under such section; divided by
109
(II) the total amount of support
collected by the States during the fis-
cal year in all cases under such part.
(D) 
AFDC 
SUPPORT
COLLECTION
RATIO.—As used in subparagraph (B), the term
‘‘AFDC support collection ratio’’ means, with
respect to a fiscal year—
(i) for a State—
(I) the total amount expended by
the State during the fiscal year for
the operation of the plan approved
under section 454 of the Social Secu-
rity Act; divided by
(II) the total amount of support
collected by the State under the plan
during the fiscal year in cases in
which the support obligation involved
is assigned to the State pursuant to
section 
402(a)(26) 
or 
section
471(a)(17) of such Act; and
(ii) for the United States—
(I) the total amount expended by
the States during the fiscal year for
the operation of the plans approved
under such section 454; divided by
110
(II) the total amount of support
collected by the States under the
plans during the fiscal year in cases in
which the support obligation involved
is assigned to a State pursuant to sec-
tion 402(a)(26) or section 471(a)(17)
of such Act.
(3) APPLICATION REQUIREMENTS.—Each appli-
cation of a State to conduct a demonstration project
under this subsection must describe a demonstration
project that meets the following requirements:
(A) PROJECT
BENEFICIARIES.—A child
support assurance benefit is payable under the
project to the caretaker of a child if—
(i) the child is an eligible child; and
(ii) the caretaker has applied for serv-
ices under the State plan approved under
part D of title IV of the Social Security
Act.
(B) ELIGIBLE CHILDREN.—A child is an
eligible child if—
(i) the child resides in the State;
(ii) the child has a living noncustodial
parent;
111
(iii) a good faith effort has been made
to seek or enforce an order for such parent
to provide support for the child, or there is
good cause for not seeking or enforcing
such an order; and
(iv) any rights to support owed the
child have been assigned to the State, to
the extent of the child support assurance
benefits received with respect to the child
under the project.
(C) AMOUNT OF CHILD SUPPORT ASSUR-
ANCE BENEFIT.—The amount of the child sup-
port assurance benefit payable under the
project to the caretaker of 1 or more eligible
children is the amount by which—
(i) the child support assurance thresh-
old; exceeds
(ii) the dollar value of the child sup-
port (if any) received during the month by
the caretaker from the noncustodial parent
for the support of any eligible child.
(D) CHILD SUPPORT ASSURANCE THRESH-
OLD.—The child support assurance threshold is
1⁄12 of—
112
(i) $2,000 for the 1st eligible child;
plus
(ii) $1,000 for the 2nd eligible child
(if any); plus
(iii) $500 for each subsequent eligible
child (if any).
(4) METHODS TO BE TESTED.—In approving
applications to conduct demonstration projects under
this subsection, the Secretary shall ensure that the
applications approved under this subsection describe
projects which, in the aggregate, are designed to test
the following:
(A) 
ADMINISTRATIVE
VERSUS
OTHER
PROCESSING.—The feasibility of implementing
a statewide child support assurance benefit in a
State which processes child support and parent-
age cases administratively, as opposed to the
feasibility of implementing such a benefit in a
State which processes such cases only judicially
or quasi-judicially.
(B) ALLOWANCE OF GOOD CAUSE EXCEP-
TIONS.—The effects of prohibiting the provision
of a child support assurance benefit with re-
spect to a child unless an order for the support
of the child has been established and the care-
113
taker of the child has made a good faith effort
to enforce the order, as opposed to allowing
good cause exceptions to the prohibition.
(C) TIMING OF BENEFITS.—The effects of
providing child support assurance benefits im-
mediately upon the establishment of a child
support order, as opposed to providing such
benefits only after a period (determined by the
Secretary) of nonreceipt of child support. The
Secretary may select 1 or more such periods to
be tested in different demonstration projects.
(D) RELATIONSHIP
OF
BENEFITS
TO
OTHER INCOME AND BENEFITS.—The effects of
reducing the amount payable with respect to a
child under the State plan approved under part
A of title IV of the Social Security Act by a
portion (determined by the Secretary) of the
child support assurance benefit provided by the
State with respect to the child, as opposed to
reducing the child support assurance benefit
provided by the State with respect to the child
by a portion (determined by the Secretary) of
the earned income of the family of the child.
The Secretary may select 1 or more such por-
114
tions of benefits or of earned income to be test-
ed in different demonstration projects.
(5) PRIORITY TO BE GIVEN TO PROJECTS THAT
INCLUDE WORK INCENTIVES.—In approving applica-
tions to conduct demonstration projects under this
subsection, the Secretary shall give priority among
otherwise equivalent applications to applications that
describe projects that include work incentives for
participants.
(6) APPROVAL
OF
CERTAIN
APPLICATIONS.—
The Secretary shall approve not more than 5 appli-
cations to conduct demonstration projects under this
subsection which appear likely to contribute signifi-
cantly to the achievement of the purpose of this sub-
section.
(7) OTHER REQUIREMENTS.—Each State whose
application to conduct a demonstration project under
this subsection has been approved by the Secretary
shall conduct the project in accordance with such
regulations as the Secretary may prescribe.
(8) FUNDING.—From the sums appropriated to
carry out this subsection, the Secretary shall pay to
each State whose application to conduct a dem-
onstration project under this subsection has been ap-
115
proved by the Secretary, for each month, an amount
equal to—
(A) 90 percent of the aggregate amount of
the child support assurance benefits paid by the
State during the month if, during the month,
the project has met such performance goals as
the Secretary has established for the project; or
(B) 80 percent of such aggregate amount,
otherwise.
(9) MODIFIED PRIORITY OF DISTRIBUTION OF
CHILD SUPPORT COLLECTED FOR CHILDREN WITH
RESPECT
TO
WHOM
CHILD
SUPPORT
ASSURANCE
BENEFIT IS PAID.—In lieu of paragraph (1) of sec-
tion 457(e) of the Social Security Act, child support
collected from a noncustodial parent of a child with
respect to whom a child support assurance benefit is
paid under a demonstration project conducted under
this subsection shall (subject to section 457(d) of
such Act) be paid—
(A) first to the State, to the extent nec-
essary to reimburse the State for the portion of
the benefit not paid from funds provided under
paragraph (8) of this subsection; and
(B) then to the Federal Government, to
the extent necessary to reimburse the Federal