I
104TH CONGRESS
1ST SESSION
H. R. 759
To improve the effectiveness of Federal welfare efforts and increase citizen
participation in fighting poverty.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 31, 1995
Mr. KNOLLENBERG (for himself, Mr. KOLBE, Mr. SMITH of Texas, and Mr.
ISTOOK) introduced the following bill; which was referred to the Commit-
tee on Ways and Means and, in addition, to the Committees on Agri-
culture, Commerce, Economic and Educational Opportunities, Banking
and Financial Services, the Judiciary, Resources, and Rules, for a period
to be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee
concerned
A BILL
To improve the effectiveness of Federal welfare efforts and
increase citizen participation in fighting poverty.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Common Sense
Welfare Reform Act of 1995’’.
TITLE I—CAPPING THE AGGRE-
GATE GROWTH OF WELFARE
SPENDING
SEC. 101. CAP ON GROWTH OF FEDERAL SPENDING ON
CERTAIN WELFARE PROGRAMS.
(a) RESTRICTIONS ON SPENDING.—The total amount
of Federal spending for a fiscal year for the programs list-
ed in subsection (b) shall not exceed—
(1) in fiscal year 1996, an amount equal to the
sum of—
(A) the total Federal spending for fiscal
year 1995 on the programs listed in section
103;
(B) the total Federal spending for fiscal
year 1995 on the Head Start programs carried
out under the Head Start Act;
(C) the total Federal spending for fiscal
year 1995 on cash, medical, and social services
assistance furnished to refugees and entrants
under title IV of the Immigration and National-
ity Act and section 501 of the Refugee Edu-
cation Assistance Act of 1980; and
(D) the total Federal spending for fiscal
year 1995 on the special supplemental food pro-
gram for women, infants, and children carried
out under section 17 of the Child Nutrition Act
of 1966; and
(2) in fiscal year 1997 and succeeding fiscal
years, an amount equal to the sum of—
(A) the total Federal spending permitted
under this subsection for the preceding fiscal
year; and
(B) an adjustment for inflation.
The inflator used in the preceding sentence shall be
the percent by which the average of the estimated
gross national product fixed-weight price index for
that fiscal year differs from the average of such esti-
mated index for the preceding fiscal year.
(b) PROGRAMS SUBJECT TO SPENDING LIMIT.—The
programs listed in this subsection are the following:
(1) The welfare block grant program estab-
lished under section 102.
(2) The Head Start programs carried out under
the Head Start Act.
(3) The cash, medical, and social services as-
sistance programs for refugees and entrants under
title IV of the Immigration and Nationality Act and
section 501 of the Refugee Education Assistance Act
of 1980.
(4) The special supplemental food program for
women, infants, and children carried out under sec-
tion 17 of the Child Nutrition Act of 1966.
(5) The programs providing general assistance
to Indians under the Act of November 12, 1921 (25
U.S.C. 13; commonly known as the ‘‘Snyder Act’’).
(6) The programs providing Indian health serv-
ices under the Indian Health Care Improvement Act
(25 U.S.C. 1601 et seq.).
(7) The programs providing Indian housing im-
provement grants.
(8) The programs providing Indian and Native
American employment training.
(c) RECONCILIATION OF GROWTH LIMITS.—
(1) 
ALLOCATIONS.—The 
joint 
explanatory
statement accompanying a conference report on a
concurrent resolution on the budget described in sec-
tion 301 of the Congressional Budget Act of 1974
for a fiscal year shall include allocations to each
committee based on the spending cap imposed by
subsection (a) for such fiscal year.
(2) RECONCILIATION
DIRECTIVES.—The rec-
onciliation directives described in section 310 of the
Congressional Budget Act of 1974 shall specify re-
ductions for each committee necessary to comply
with the spending caps imposed by subsection (a) for
such fiscal year.
(3) CONSULTATION
WITH
COMMITTEES.—In
conducting any activities required under paragraphs
(1) and (2), the Committees on the Budget of the
House of Representatives and the Senate shall con-
sult with the following committees of Congress:
(A) The Committee on Ways and Means of
the House of Representatives.
(B) The Committee on Finance of the
Senate.
(C) The Committee on Agriculture of the
House of Representatives.
(D) The Committee on Agriculture, Nutri-
tion, and Forestry of the Senate.
(E) The Committee on Economic Oppor-
tunity of the House of Representatives.
(F) The Committee on Labor and Human
Resources of the Senate.
(G) The Committee on Banking and Fi-
nancial Services of the House of Representa-
tives.
(H) The Committee on Banking, Housing,
and Urban Affairs of the Senate.
(I) The Committee on Commerce of the
House of Representatives.
(J) The Committee on Resources of the
House of Representatives.
SEC. 102. WELFARE BLOCK GRANT PROGRAM.
(a) ENTITLEMENT.—Each State shall be entitled to
receive from the Secretary of the Treasury for each fiscal
year an amount equal to the welfare block grant amount
payable to the State for the fiscal year.
(b) DEFINITIONS.—As used in subsection (a):
(1) WELFARE
BLOCK
GRANT
AMOUNT.—The
term ‘‘welfare block grant amount’’ means, with re-
spect to a State and a fiscal year, an amount equal
to the amount described by subparagraph (A) multi-
plied by the amount described by subparagraph (B).
(A) WELFARE FUNDS AVAILABLE TO THE
STATE.—The amount described by this sub-
paragraph is the amount described in clause (i)
reduced by the amount described by clause (ii).
(i) STATE SHARE OF FEDERAL WEL-
FARE
EXPENDITURES
DURING
FISCAL
YEAR 1995.—The amount described by this
clause 
is 
the 
amount 
described 
by
subclause (I) multiplied by the amount de-
scribed by subclause (II).
(I) FEDERAL WELFARE EXPEND-
ITURES DURING FISCAL YEAR 1995.—
The 
amount 
described 
by 
this
subclause is the aggregate of the
amounts expended during fiscal year
1995 under the provisions of law re-
pealed by section 103 and the pro-
grams eliminated by the amendments
made by subsections (c)(4) and (h)(8)
of section 103, as such provisions of
law and programs are in effect on
September 30, 1995.
(II) STATE SHARE.—The amount
described by this subclause is the ag-
gregate of the amounts paid to the
State during fiscal year 1995 under
such provisions of law and programs,
divided by the aggregate of the
amounts paid to all States during fis-
cal year 1995 under such provisions
of law and programs.
(ii) REDUCTION
IN
FEDERAL
REVE-
NUES
DUE
TO
CHARITABLE
CONTRIBU-
TIONS TAX CREDITS ALLOWED TO CERTAIN
INDIVIDUALS DOMICILED IN THE STATE.—
The amount described by this clause is the
amount (if any) by which Federal revenues
are reduced for the fiscal year as a result
of credits allowed by section 23 of the In-
ternal Revenue Code of 1986 to individuals
who were domiciled in the State at the
time the charitable contribution in respect
of which the credit is allowed was made.
(B) 
INFLATION
ADJUSTMENT.—The
amount described by this subparagraph is the
sum of 1 and the percentage (if any) by
which—
(i) the average of the Consumer Price
Index (as defined in section 1(f)(5) of the
Internal Revenue Code of 1986) for the
most recent 12-month period for which
such Index is available; exceeds
(ii) the average of such Index for the
corresponding 12-month period that ended
the applicable number of years earlier.
(2) APPLICABLE
NUMBER
OF
YEARS.—The
term ‘‘applicable number of years’’ means the num-
ber of whole fiscal years that have elapsed since the
end of fiscal year 1995.
(3) STATE.—The term ‘‘State’’ includes the
District of Columbia, the Commonwealth of Puerto
Rico, the Commonwealth of the Northern Mariana
Islands, the United States Virgin Islands, Guam,
American Samoa, and the Trust Territory of the
Pacific Islands.
(c) AMOUNT AND TIMING OF GRANT PAYMENTS.—
The Secretary of the Treasury shall make the payments
required by subsection (a) at such times and in such man-
ner as the Secretary deems appropriate from the revolving
fund established under subsection (f).
(d) USE OF FUNDS.—Each State to which funds are
provided under this section shall use such funds to provide
assistance to individuals and families whose incomes do
not exceed 150 percent of the income official poverty line
(as defined by the Office of Management and Budget, and
revised annually in accordance with section 673(2) of the
Omnibus Budget Reconciliation Act of 1981) applicable
to a family of the size involved.
(e) COMPLIANCE WITH CIVIL RIGHTS LAWS RE-
QUIRED.—Each State to which funds are provided under
this section shall not violate any requirement established
by statute or regulation under the following Acts in pro-
viding aid using funds provided under this section:
(1) Title VI of the Civil Rights Act of 1965.
(2) Section 504 of the Rehabilitation Act of
1973.
(3) Title IX of the Education Amendments of
1972.
(4) The Age Discrimination Act of 1975.
(5) The Americans with Disabilities Act of
1990.
(f) REVOLVING FUND.—
(1) CREATION.—There is hereby established in
the Treasury of the United States a revolving fund
which shall be known as the ‘‘Welfare Revolving
Fund’’, consisting of such amounts as may be appro-
priated to the revolving fund.
(2) LIMITATIONS ON AUTHORIZATION OF AP-
PROPRIATIONS.—There are authorized to be appro-
priated to the revolving fund for each fiscal year an
amount equal to the amount described by subsection
(b)(1)(A)(i)(I) for the fiscal year, multiplied by the
amount described by subsection (b)(1)(B) for the
fiscal year.
(3) PAYMENT OF COST OF CREDIT FOR CHARI-
TABLE CONTRIBUTIONS TO CERTAIN PRIVATE CHAR-
ITIES PROVIDING ASSISTANCE TO THE POOR.—On
July 15 of each fiscal year, the Secretary of the
Treasury shall make a payment to the Treasury of
the United States from the revolving fund of an
amount equal to the amount (if any) by which Fed-
eral revenues are reduced for the fiscal year as a re-
sult of the amendments made by section 201(a).
(4) PAYMENT OF WELFARE BLOCK GRANT.—
Except as provided in paragraph (3), amounts in the
revolving fund shall be available, as provided in ap-
propriation Acts, only for the payment of grants
under subsection (a).
(g) SUNSET.—This section shall have no force or ef-
fect at the end of the 5-year period that begins with the
effective date of this title.
SEC. 103. ELIMINATION OF CERTAIN WELFARE PROGRAMS.
(a) CASH AID.—
(1) AFDC.—Part A of title IV of the Social Se-
curity Act, except sections 403(h) and 417, (42
U.S.C. 601–617) is repealed.
(2) SSI.—Title XVI of the Social Security Act,
as in effect pursuant to the amendment made by
section 301 of the Social Security Amendments of
1972, (42 U.S.C. 1381–1383d) is repealed.
(3) FOSTER CARE AND ADOPTION ASSISTANCE
PROGRAMS.—Part E of title IV of the Social Secu-
rity Act (42 U.S.C. 470–479) is repealed.
(4) GRANTS TO TERRITORIES FOR AID TO THE
AGED.—Title I of the Social Security Act (42 U.S.C.
301–306) is repealed.
(5) GRANTS TO TERRITORIES FOR AID TO THE
BLIND.—Title X of the Social Security Act (42
U.S.C. 1201–1206) is repealed.
(6) GRANTS TO TERRITORIES FOR AID TO THE
TOTALLY DISABLED.—Title XIV of the Social Secu-
rity Act (42 U.S.C. 1351–1355) is repealed.
(7) GRANTS TO TERRITORIES FOR AID TO THE
AGED, BLIND, OR DISABLED.—Title XVI of the So-
cial Security Act, as in effect without regard to the
amendment made by section 301 of the Social Secu-
rity Amendments of 1972, (42 U.S.C. 1381 note,
1382 note, and 1383 note, 1384 note, and 1385
note) is repealed.
(b) MEDICAL AID.—
(1) MATERNAL AND CHILD HEALTH SERVICES
BLOCK GRANT PROGRAM.—Title V of the Social Se-
curity Act (42 U.S.C. 701–709) is repealed.
(2) COMMUNITY
HEALTH
CENTERS.—Section
330 of the Public Health Service Act (42 U.S.C.
254c) is repealed.
(3) MIGRANT HEALTH CENTERS.—Section 329
of the Public Health Service Act (42 U.S.C. 254b)
is repealed.
(c) FOOD AID.—
(1) FOOD STAMP PROGRAM.—The Food Stamp
Act of 1977 (7 U.S.C. 2011 et seq.) is repealed.
(2) SCHOOL LUNCH PROGRAM.—Sections 4, 6,
and 11 of the National School Lunch Act (42 U.S.C.
1753, 1755, and 1759a) are repealed.
(3) 
EMERGENCY
FOOD
ASSISTANCE
PRO-
GRAM.—The Emergency Food Assistance Act of
1983 (7 U.S.C. 612c note) is repealed.
(4) NUTRITION
PROGRAMS
FOR
THE
ELDER-
LY.—The Older Americans Act of 1965 (42 U.S.C.
3001 et seq.) is amended—
(A) in section 205(a)—
(i) by striking paragraph (2), and
(ii) in paragraph (1)—
(I) by striking ‘‘(1)’’, and
(II) by redesignating subpara-
graphs (A), (B), and (C) as para-
graphs (1), (2), and (3), respectively,
and
(B) in section 303 by striking subsections
(b) and (c),
(C) in section 304—
(i) in subsection (b) by striking ‘‘or
C’’, and
(ii) in subsection (d)(1)(D) by striking
‘‘, senior centers, and nutrition services’’
and inserting ‘‘and senior centers’’,
(D) in section 306(a)(1) by striking ‘‘, nu-
trition services,’’ each place it appears,
(E) in section 307(a) by striking para-
graph (13),
(F) in section 308—
(i) in subsection (b) by striking para-
graphs (4), (5), (6), and (7), and
(ii) by striking subsection (c),
(G) in title III by striking part C,
(H) in section 422(10)(ii) by striking sub-
paragraph (IV),
(I) in section 429B(d) by striking para-
graph (1), and
(J) in section 614(a) by striking paragraph
(8).
(5) SCHOOL BREAKFAST PROGRAM.—Section 4
of the Child Nutrition Act of 1966 (42 U.S.C. 1773)
is repealed.
(6) CHILD AND ADULT CARE FOOD PROGRAM.—
Section 17 of the National School Lunch Act (42
U.S.C. 1766) is repealed.
(7) SUMMER
FOOD
SERVICE
PROGRAM
FOR
CHILDREN.—Section 13 of the National School
Lunch Act (42 U.S.C. 1761) is repealed.
(8) COMMODITY
SUPPLEMENTAL
FOOD
PRO-
GRAM FOR CHILDREN AND THE ELDERLY.—Sections
4 and 5 of the Agriculture and Consumer Protection
Act of 1973 (7 U.S.C. 612c note) are repealed.
(9) SPECIAL MILK PROGRAM.—Section 3 of the
Child Nutrition Act of 1966 (42 U.S.C. 1772) is re-
pealed.
(d) HOUSING AID.—
(1) SECTION 8 RENTAL ASSISTANCE AND PUB-
LIC HOUSING.—Title I of the United States Housing
Act of 1937 (42 U.S.C. 1437 et seq.) is repealed.
(2) RURAL SINGLE FAMILY HOUSING LOANS.—
Section 502 of the Housing Act of 1949 (42 U.S.C.
1472) is repealed.
(3) SECTION 236 INTEREST REDUCTION ASSIST-
ANCE.—Section 236 of the National Housing Act
(12 U.S.C. 1715z–1) is repealed.
(4) RURAL
RENTAL
HOUSING
ASSISTANCE.—
Section 515 of the Housing Act of 1949 (42 U.S.C.
1485) is repealed.
(5) RURAL RENTAL ASSISTANCE PAYMENTS.—
Paragraph (2) of section 521(a) of the Housing Act
of 1949 (42 U.S.C. 1490a(a)(2)) is repealed.
(6) SECTION
235
HOMEOWNERSHIP
ASSIST-
ANCE.—Section 235 of the National Housing Act
(12 U.S.C. 1715z) is repealed.
(7) RENT SUPPLEMENT ASSISTANCE.—Section
101 of the Housing and Urban Development Act of
1968 (12 U.S.C. 1701s) is repealed.
(8) RURAL
HOUSING
REPAIR
ASSISTANCE.—
Section 504 of the Housing Act of 1949 (42 U.S.C.
1474) is repealed.
(9) FARM
LABOR
HOUSING
LOANS.—Section
514 of the Housing Act of 1949 (42 U.S.C. 1483)
is repealed.
(10) RURAL HOUSING SELF-HELP TECHNICAL
ASSISTANCE.—Section 523 of the Housing Act of
1949 (42 U.S.C. 1490c) is repealed.
(11) FARM LABOR HOUSING GRANTS.—Section
516 of the Housing Act of 1949 (42 U.S.C. 1486)
is repealed.
(12) 
RURAL
HOUSING
PRESERVATION
GRANTS.—Section 533 of the Housing Act of 1949
(42 U.S.C. 1490m) is repealed.
(e) ENERGY AID.—
(1) LOW-INCOME
HOME
ENERGY
ASSISTANCE
PROGRAMS.—The Low-Income Home Energy Assist-
ance Act of 1981 (42 U.S.C. 8621–8629) is re-
pealed.
(2) WEATHERIZATION ASSISTANCE PROGRAM.—
Part A of title IV of the Energy Conservation and
Production Act (42 U.S.C. 6861–6872), and the
items relating thereto in the table of contents of
such Act, are repealed.
(f) EDUCATION AID.—
(1) Subpart 1 of part A of title IV of the High-
er Education Act of 1965 (20 U.S.C. 1070a), relat-
ing to Pell grants, is repealed.
(2) Subpart 1 of part A of title I of the Ele-
mentary and Secondary Education Act of 1965 (20
U.S.C. 6311 et seq.) is repealed.
(3) Subpart 3 of part A of title IV of the High-
er Education Act of 1965 (20 U.S.C. 1070b–1 et
seq.), relating to Federal supplemental educational
opportunity grants, is repealed.
(4) Part C of title I of the Elementary and Sec-
ondary Education Act of 1965 (20 U.S.C. 6391 et
seq.) is repealed.
(5) Chapter 1 of subpart 2 of part A of title IV
of the Higher Education Act of 1965 (20 U.S.C.
1070a–11 to 1070a–18), relating to Federal TRIO
programs, is repealed.
(6) Subpart 4 of part A of title IV of the High-
er Education Act of 1965 (20 U.S.C. 1070c et seq.),
relating to grants to States for State student incen-
tives, is repealed.
(7) Part A of title IX of the Higher Education
Act of 1965 (20 U.S.C. 1134a et seq.), relating to
grants to institutions and consortia to encourage
women and minority participation in graduate edu-
cation, is repealed.
(g) JOBS AND TRAINING AID.—
(1) ADULT
TRAINING
PROGRAM.—Part A of
title II of the Job Training Partnership Act (29
U.S.C. 1601 et seq.) is repealed.
(2) SUMMER YOUTH EMPLOYMENT AND TRAIN-
ING PROGRAM.—Part B of title II of the Job Train-
ing Partnership Act (29 U.S.C. 1630 et seq.) is re-
pealed.
(3) JOB CORPS.—Part B of title IV of the Job
Training Partnership Act (29 U.S.C. 1691 et seq.)
is repealed.
(4) OLDER AMERICAN COMMUNITY SERVICE EM-
PLOYMENT PROGRAM.—Title V of the Older Ameri-
cans Act of 1965 (42 U.S.C. 501–511) is repealed.
(5) JOBS PROGRAM.—Part F of title IV of the
Social Security Act (42 U.S.C. 681–687) is repealed.
(6) NATIVE
AMERICANS
AND
MIGRANT
AND
SEASONAL
FARMWORKERS
PROGRAMS.—Sections
401 and 402 of the Job Training Partnership Act
(29 U.S.C. 1671 and 1672) are repealed.
(h) SOCIAL SERVICES.—
(1) BLOCK
GRANTS
TO
STATES
FOR
SOCIAL
SERVICES.—Title XX of the Social Security Act (42
U.S.C. 1397–1397f) is repealed.
(2) COMMUNITY SERVICES BLOCK GRANT PRO-
GRAM.—The Community Services Block Grant Act
(42 U.S.C. 9901), other than sections 671 and 673
of such Act, is repealed.
(3) LEGAL SERVICES.—The Legal Services Cor-
poration Act of 1974 (42 U.S.C. 2996 et seq.) is
repealed.
(4) FEMA EMERGENCY FOOD AND SHELTER
PROGRAM.—Title III of the Stewart B. McKinney
Homeless Assistance Act (42 U.S.C. 11331 et seq.)
is repealed.
(5) RESEARCH REGARDING FAMILY PLANNING
AND
POPULATION
ISSUES.—Section 1004 of the
Public Health Service Act (42 U.S.C. 300a–2) is
repealed.
(6) 
VOLUNTARY
FAMILY
PLANNING
PROJECTS.—Section 1001 of the Public Health
Service Act (42 U.S.C. 300) is repealed.
(7) DOMESTIC VOLUNTEER SERVICE ACT.—The
Domestic Volunteer Service Act of 1973 (42 U.S.C.
4950 et seq.) is repealed.
(8) SUPPORTIVE SERVICES FOR OLDER INDI-
VIDUALS.—The Older Americans Act of 1965 (42
U.S.C. 3301 et seq.) is amended—
(A) in section 102(44) by striking ‘‘means
a service described in section 321(a)’’ and in-
serting the following:
‘‘means—
‘‘(A) a health (including mental health),
education and training, welfare, informational,
recreational, homemaker, counseling, or referral
service;
come guardians, if other adequate
representation is unavailable in the
proceedings; or
‘‘(iii) provision, to older individuals
who provide uncompensated care to their
adult children with disabilities, of counsel-
ing to assist such older individuals with
permanency planning for such children;
‘‘(G) a service designed to enable older in-
dividuals to attain and maintain physical and
mental well-being through programs of regular
physical activity, exercise, music therapy, art
therapy, and dance-movement therapy;
‘‘(H) a service designed to provide health
screening to detect or prevent illnesses, or both,
that occur most frequently in older individuals;
‘‘(I) a service designed to provide, for older
individuals, preretirement counseling and assist-
ance in planning for and assessing future post-
retirement needs with regard to public and pri-
vate 
insurance, 
public 
benefits, 
lifestyle
changes, relocation, legal matters, leisure time,
and other appropriate matters;
‘‘(J) a service of an ombudsman at the
State level to receive, investigate, and act on
complaints by older individuals who are resi-
dents of long-term care facilities and to advo-
cate for the well-being of such individuals;
‘‘(K) a service designed to meet the unique
needs of older individuals who are disabled, and
of older individuals who provide uncompensated
care to their adult children with disabilities;
‘‘(L) a service to encourage the employ-
ment of older workers, including job and second
career counseling and, where appropriate, job
development, referral, and placement;
‘‘(M) a crime prevention service or a victim
assistance program for older individuals;
‘‘(N) a program, to be known as ‘Senior
Opportunities and Services’, designed to iden-
tify and meet the needs of low-income older in-
dividuals in one or more of the following areas:
(A) development and provision of new volunteer
services; (B) effective referral to existing health,
employment, housing, legal, consumer, trans-
portation, and other services; (C) stimulation
and creation of additional services and pro-
grams to remedy gaps and deficiencies in pres-
ently existing services and programs; and (D)
such other services as the Assistant Secretary
may determine are necessary or especially ap-
propriate to meet the needs of low-income older
individuals and to assure them greater self-
sufficiency;
‘‘(O) a service for the prevention of abuse
of older individuals in accordance with chapter
3 of subtitle A of title VII and section
307(a)(16);
‘‘(P) inservice training and State leader-
ship for legal assistance activities;
‘‘(Q) a health and nutrition education serv-
ice, including information concerning preven-
tion, diagnosis, treatment, and rehabilitation of
age-related diseases and chronic disabling con-
ditions;
‘‘(R) a service designed to enable mentally
impaired older individuals to attain and main-
tain emotional well-being and independent living
through a coordinated system of support serv-
ices;
‘‘(S) a service designed to support family
members and other persons providing voluntary
care to older individuals that need long-term
care services;
‘‘(T) a service designed to provide informa-
tion and training for individuals who are or
may become guardians or representative payees
of older individuals, including information on
the powers and duties of guardians and rep-
resentative payees and on alternatives to
guardianships;
‘‘(U) a service to encourage and facilitate
regular interaction between school-age children
and older individuals, including visits in long-
term care facilities, multipurpose senior centers,
and other settings; or
‘‘(V) any other service;
if such service meets standards prescribed by the As-
sistant Secretary and are necessary for the general
welfare of older individuals. For purposes of sub-
paragraph (E), the term ‘client assessment through
case management’ includes providing information re-
lating to assistive technology.’’,
(B) in section 207(c)(4) by striking ‘‘sup-
portive services and’’,
(C) in section 301(a)(1) by striking ‘‘, and
for the provision of,’’,
(D) by striking section 303(a)—
(E) in section 304—
(i) by striking subsection (b), and
(ii) in subsection (d)(1)—
(I) by striking subparagraph (C),
and
(II) by striking subparagraph
(D),
(F) in section 306(a)—
(i) by striking paragraphs (1) and (2),
and
(ii) in paragraph (6) by striking sub-
paragraphs (L) and (M),
(G) in section 307(a)—
(i) in paragraph (10) by striking
‘‘supportive services,’’, and
(ii) by striking paragraphs (14) and
(22),
(H) in title III by striking part B,
(I) in section 422(b)(11)(A)(ii)(V) by
striking ‘‘section 321(a)(21)’’ and inserting
‘‘section 102(44)(U)’’,
(J) in section 429D(b)(1) by striking
‘‘under part B of title III,’’, and
(K) in section 429(H)(a) by striking para-
graph (3).
(i) COMMUNITY AID.—
(1) COMMUNITY DEVELOPMENT BLOCK GRANTS
AND URBAN DEVELOPMENT ACTION GRANTS.—Title
I of the Housing and Community Development Act
of 1974 (42 U.S.C. 5301 et seq.) is repealed.
(2) APPALACHIAN
REGIONAL
DEVELOPMENT
PROGRAM.—The Appalachian Regional Development
Commission is terminated and the Appalachian Re-
gional Development Act of 1965 (40 U.S.C. App. 1
et seq.) is repealed.
SEC. 104. SAVINGS FROM WELFARE SPENDING LIMITS TO
BE USED FOR DEFICIT REDUCTION.
(a) DEFICIT REDUCTION.—All savings to the Federal
Government resulting from the spending cap imposed
under section 101 shall be used for deficit reduction. Such
savings shall not be used to fund increased spending under
any programs that are not subject to the spending cap.
(b) TREATMENT ON THE PAYGO SCORECARD.—None
of the budgetary effects resulting from the enactment of
this title shall be counted for purposes of section 252 of
the Balanced Budgetary and Emergency Deficit Control
Act of 1985.
SEC. 105. TRANSFER OF CERTAIN PROVISIONS.
(a) PENALTIES FOR SUBSTANTIAL NONCOMPLIANCE
WITH STATE PLAN
FOR CHILD
AND SPOUSAL SUP-
PORT.—
(1) IN GENERAL.—Section 403(h) of such Act
(42 U.S.C. 603(h)) is hereby transferred to section
455 of such Act, inserted after subsection (b) of
such section 455, and redesignated as subsection (c).
(2) CONFORMING AMENDMENTS.—
(A) Section 455(c) of such Act (42 U.S.C.
655(c)), as added by paragraph (1) of this sub-
section, is amended—
(i) in paragraph (1)—
(I) by striking ‘‘Act’’ and insert-
ing ‘‘part’’;
(II) by striking ‘‘part D’’ and in-
serting ‘‘this part’’; and
(III) by striking ‘‘such part’’ and
inserting ‘‘this part’’; and
(ii) by striking paragraph (3).
(B) Section 452(a)(4) of such Act (42
U.S.C. 652(a)(4)) is amended—
(i) by striking ‘‘403(h)(1)’’ and insert-
ing ‘‘455(c)(1)’’; and
(ii) by striking ‘‘403(h)(2)’’ and in-
serting ‘‘455(c)(2)’’.
(C) Section 452 of such Act (42 U.S.C.
652) is amended, in each of subsections (a)(4),
(d)(3)(A), (g)(1), and (g)(3)(A), by striking
‘‘403(h)’’ and inserting ‘‘455(c)’’.
(b) ASSISTANT SECRETARY FOR FAMILY SUPPORT.—
(1) IN GENERAL.—Section 417 of such Act (42
U.S.C. 617) is hereby transferred to section 452 of
such Act, added at the end of such section 452, and
redesignated as subsection (j).
(2) CONFORMING AMENDMENT.—Section 452(j)
of such Act (42 U.S.C. 652(j)), as added by para-
graph (1) of this subsection, is amended—
(A) by striking ‘‘ASSISTANT
SECRETARY
FOR FAMILY SUPPORT’’; and
(B) by striking ‘‘programs under this part,
part D, and part F’’ and inserting ‘‘program
under this part’’.
SEC. 106. EFFECTIVE DATE.
This title and the amendments and repeals made by
this title shall take effect on the 1st day of the 1st fiscal
year that begins on or after the date of the enactment
of this Act.
TITLE 
II—EMPOWERING 
TAX-
PAYERS TO PARTICIPATE IN
POVERTY RELIEF EFFORTS
SEC. 201. CREDIT FOR CHARITABLE CONTRIBUTIONS TO
CERTAIN PRIVATE CHARITIES PROVIDING
ASSISTANCE TO THE POOR.
(a) IN GENERAL.—Subpart A of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 (relating to nonrefundable personal credits) is
amended by inserting after section 22 the following new
section:
‘‘SEC. 23. CREDIT FOR CERTAIN CHARITABLE CONTRIBU-
TIONS.
‘‘(a) IN GENERAL.—In the case of an individual,
there shall be allowed as a credit against the tax imposed
by this chapter for the taxable year an amount equal to
the qualified charitable contributions which are paid by
the taxpayer during the taxable year.
‘‘(b) LIMITATION.—
‘‘(1) IN GENERAL.—The credit allowed by sub-
section (a) for the taxable year shall not exceed the
lesser of—
‘‘(A) the applicable percentage of the tax-
payer’s net regular tax for the taxable year, or
‘‘(B) the applicable amount for such tax-
able year.
‘‘(2) APPLICABLE
PERCENTAGE; APPLICABLE
AMOUNT.—For purposes of paragraph (1), the term
‘applicable percentage’ means the percentage deter-
mined in accordance with the following table:
In the case of taxable years
beginning in calendar year:
The applicable percent-
age is:
The applicable amount
is:
1996 .....................................
2 percent
$
500
1997 .....................................
4 percent
1,000
1998 .....................................
6 percent
1,500
1999 .....................................
8 percent
2,000
2000 .....................................
10 percent
2,500.
‘‘(3) NET
REGULAR
TAX.—For purposes of
paragraph (1), the term ‘net regular tax’ means reg-
ular tax liability (as defined in section 26(b), re-
duced by the credits allowable under this subpart
(other than this section), subpart B, and subpart D.
‘‘(c) QUALIFIED CHARITABLE CONTRIBUTION.—For
purposes of this section, the term ‘qualified charitable con-
tribution’ means any charitable contribution (as defined
in section 170(c)) made in cash to a qualified charity but
only if the amount of each such contribution, and the re-
cipient thereof, are identified on the return for the taxable
year during which such contribution is made.
‘‘(d) QUALIFIED CHARITY.—
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘qualified charity’ means, with respect
to the taxpayer, any organization described in sec-
tion 501(c)(3) and exempt from tax under section
501(a)—
‘‘(A) which is certified by the Secretary as
meeting the requirements of paragraphs (2)
and (3), and
‘‘(B) which is organized under the laws of
the State in which the taxpayer is domiciled at
the time the contribution is made and is exempt
from income taxation (if any) by such State.
‘‘(2) CHARITY
MUST
PRIMARILY
ASSIST
THE
POOR.—An organization meets the requirements of
this paragraph only if the predominant activity of
such organization is the provision of services to indi-
viduals whose annual incomes do not exceed 150
percent of the official poverty line (as defined by the
Office of Management and Budget).
‘‘(3) MINIMUM EXPENDITURE REQUIREMENT.—
‘‘(A) IN GENERAL.—An organization meets
the requirements of this paragraph only if the
Secretary reasonably expects that the annual
exempt purpose expenditures of such organiza-
tion will not be less than 70 percent of the an-
nual aggregate expenditures of such organiza-
tion.
‘‘(B) EXEMPT PURPOSE EXPENDITURE.—
For purposes of subparagraph (A)—
‘‘(i) IN GENERAL.—The term ‘exempt
purpose expenditure’ means any expendi-
ture to carry out the activity referred to in
paragraph (2).
‘‘(ii) EXCEPTIONS.—Such term shall
not include—
‘‘(I) any administrative expense,
‘‘(II) any expense for the purpose
of influencing legislation (as defined
in section 4911(d)),
‘‘(III) any expense primarily for
the purpose of fundraising, and
‘‘(IV) any expense for a legal
service provided on behalf of any indi-
vidual referred to in paragraph (2).
‘‘(e) DONOR MAY NOT HAVE FINANCIAL INTEREST
IN CHARITY.—
‘‘(1) IN GENERAL.—No credit shall be allowed
under this section for any contribution made to an
organization if the donor or any member of the do-
nor’s family is an officer or employee of such organi-
zation.
‘‘(2) SELF-DEALING.—To the extent provided
by the Secretary by regulation, no credit shall be al-
lowed under this section for any contribution made
to an organization if—
‘‘(A) the donor,
‘‘(B) any member of the family of the
donor, or
‘‘(C) any 35-percent controlled entity of
persons described in subparagraph (A) or (B),
engages in significant activities with respect to such
organization which are a type described in section
4941(d) (relating to self-dealing).
‘‘(3) 35-PERCENT CONTROLLED ENTITY.—
‘‘(A) IN GENERAL.—For purposes of para-
graph (2), the term ‘35-percent controlled en-
tity’ means—
‘‘(i) a corporation in which persons
described in subparagraph (A) or (B) of
paragraph (2) own more than 35 percent
of the combined voting power,
‘‘(ii) a partnership in which such per-
sons own more than 35 percent of the
profits interest, and
‘‘(iii) a trust or estate in which such
persons own more than 35 percent of the
beneficial interest.
‘‘(B) 
CONSTRUCTIVE
OWNERSHIP
RULES.—Rules similar to the rules of para-
graphs (3) and (4) of section 4946(a) shall
apply for purposes of this paragraph.
‘‘(4) MEMBER OF THE FAMILY.—For purposes
of this subsection, the members of an individual’s
family shall be determined under section 4946(d).
‘‘(f) COORDINATION WITH DEDUCTION FOR CHARI-
TABLE CONTRIBUTIONS.—
‘‘(1) CREDIT
IN
LIEU
OF
DEDUCTION.—The
credit provided by subsection (a) for any qualified
charitable contribution shall be in lieu of any deduc-
tion otherwise allowable under this chapter for such
contribution.
‘‘(2) 
ELECTION
TO
HAVE
SECTION
NOT
APPLY.—A taxpayer may elect for any taxable year
to have this section not apply.’’
(b) QUALIFIED CHARITIES REQUIRED TO PROVIDE
COPIES OF ANNUAL RETURN.—Subsection (e) of section
6104 of such Code (relating to public inspection of certain
annual returns and applications for exemption) is amend-
ed by adding at the end the following new paragraph:
‘‘(3) CHARITIES RECEIVING CREDITABLE CON-
TRIBUTIONS REQUIRED TO PROVIDE COPIES OF AN-
NUAL RETURN.—
‘‘(A) IN GENERAL.—Every qualified char-
ity (as defined in section 23(d)) shall, upon re-
quest of an individual made at an office where
such organization’s annual return filed under
section 6033 is required under paragraph (1) to
be available for inspection, shall provide a copy
of such return to such individual without charge
other than a reasonable fee for any reproduc-
tion and mailing costs. If the request is made
in person, such copies shall be provided imme-
diately and, if made other than in person, shall
be provided within 30 days.
‘‘(B) PERIOD OF AVAILABILITY.—Subpara-
graph (A) shall apply only during the 3-year pe-
riod beginning on the filing date (as defined in
paragraph (1)(D) of the return requested).’’
(c) CLERICAL AMENDMENT.—The table of sections
for subpart A of part IV of subchapter A of chapter 1
of such Code is amended by inserting after the item relat-
ing to section 22 the following new item:
‘‘Sec. 23. Credit for certain charitable contributions.’’
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to contributions made after the
90th day after the date of the enactment of this Act in
taxable years ending after such date.
TITLE III—PROMOTING STRONG
FAMILIES AND PARENTAL RE-
SPONSIBILITY
SEC. 301. ADDITIONAL EARNED INCOME CREDIT FOR MAR-
RIED INDIVIDUALS.
(a) IN GENERAL.—Paragraph (1) of section 32(a) of
the Internal Revenue Code of 1986 (relating to earned in-
come credit) is amended to read as follows:
‘‘(1) IN GENERAL.—There shall be allowed as a
credit against the tax imposed by this subtitle for
the taxable year an amount equal to the sum of—
‘‘(A) in the case of an eligible individual,
an amount equal to the credit percentage of so
much of the taxpayer’s earned income for the
taxable year as does not exceed the earned in-
come amount, and
‘‘(B) in the case of an eligible married in-
dividual, the applicable percentage of $1,000.’’.
(b) APPLICABLE PERCENTAGE.—Section 32(b) of the
Internal Revenue Code of 1986 (relating to percentages
and amounts) is amended by adding at the end the follow-
ing new paragraph:
‘‘(3) APPLICABLE PERCENTAGE.—The applica-
ble percentage for any taxable year is equal to 100
percent reduced (but not below 0 percent) by 10 per-
centage points for each $1,000 (or fraction thereof)
by which the taxpayer’s earned income for such tax-
able year exceeds $16,000.’’.
(c) 
ELIGIBLE
MARRIED
INDIVIDUALS.—Section
32(c) of the Internal Revenue Code of 1986 (relating to
definitions and special rules) is amended by adding at the
end the following new paragraph:
‘‘(4) ELIGIBLE
MARRIED
INDIVIDUALS.—The
term ‘eligible married individual’ means an eligible
individual (determined without regard to paragraph
(1)(A)(ii))—
‘‘(A) who is married (as defined in section
7703) and who has lived together with the indi-
vidual’s spouse at all times during such mar-
riage during the taxable year, and
‘‘(B) has earned income for the taxable
year of at least $8,500.’’.
(d) CONFORMING AMENDMENTS.—
(1) Section 32(a)(2) of the Internal Revenue
Code of 1986 is amended by striking ‘‘paragraph
(1)’’ and inserting ‘‘paragraph (1)(A)’’.
(2) Section 32(i) of such Code is amended to
read as follows:
‘‘(i) INFLATION ADJUSTMENTS.—
‘‘(1) IN GENERAL.—In the case of any taxable
year beginning after the applicable calendar year,
each dollar amount referred to in paragraph (2)(B)
shall be increased by an amount equal to—
‘‘(A) such dollar amount, multiplied by
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3), for the calendar
year in which the taxable year begins, by sub-
stituting for ‘calendar year 1992’ in subpara-
graph (B) thereof—
‘‘(i) ‘calendar year 1993’ in the case
of the dollar amounts referred to in para-
graph (2)(B)(i), and
‘‘(ii) ‘calendar year 1994’ in the case
of the dollar amounts referred to in para-
graph (2)(B)(ii).
‘‘(2) DEFINITIONS, 
ETC.—For purposes of
paragraph (1)—
‘‘(A) APPLICABLE CALENDAR YEAR.—The
term ‘applicable calendar year’ means—
‘‘(i) 1994 in the case of the dollar
amounts 
referred 
to 
in 
paragraph
(2)(B)(i), and
‘‘(ii) 1995 in the case of the dollar
amounts 
referred 
to 
in 
paragraph
(2)(B)(ii).
‘‘(B) 
DOLLAR
AMOUNTS.—The 
dollar
amounts referred to in this subparagraph are—
‘‘(i) each dollar amount contained in
subsection (b)(2)(A), and
‘‘(ii) the $16,000 amount contained in
subsection (b)(3) and the dollar amount
contained in subsection (c)(4)(B).
‘‘(3) ROUNDING.—If any dollar amount after
being increased under paragraph (1) is not a mul-
tiple of $10, such dollar amount shall be rounded to
the nearest multiple of $10 (or, if such dollar
amount is a multiple of $5, such dollar amount shall
be increased to the next higher multiple of $10).’’.
(e) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1994.
SEC. 302. NATIONAL REPORTING OF INFORMATION RELAT-
ING TO CHILD SUPPORT WITH RESPECT TO
CERTAIN EMPLOYEES.
(a) MODIFIED W–4 REPORTING.—
(1) ESTABLISHMENT OF REPORTING SYSTEM.—
The Secretary of the Treasury, in consultation with
the Secretary of Labor, shall establish a system for
the reporting of information relating to child support
obligations of employees, that meets the require-
ments of this subsection.
(2) EMPLOYEE OBLIGATIONS.—
(A) EMPLOYEES SUBJECT TO CHILD SUP-
PORT WAGE WITHHOLDING.—The system shall
require each employee who owes a qualified
child support obligation to indicate, at the time
such obligation first arises or is modified, on a
W–4 form that the employee is otherwise re-
quired to file with the employer—
(i) the existence of the obligation;
(ii) the amount of the obligation;
(iii) the name and address of the per-
son to whom the obligation is owed; and
(iv) whether health care insurance is
available through the employer to the fam-
ily of the employee.
(B) EMPLOYEES IN DESIGNATED INDUS-
TRIES.—The system shall require each em-
ployee, who is employed in a State in an indus-
try that the State has designated pursuant to
section 466(a)(12)(A) of the Social Security Act
as one with respect to which universal employ-
ment reporting would improve child support en-
forcement in a cost-effective manner, to annu-
ally file with the employer a W–4 form indicat-
ing—
(i) whether the employee owes a quali-
fied child support obligation; and
(ii) if so—
(I) the amount of the obligation;
(II) the name and address of the
person to whom the obligation is
owed; and
(III) whether health care insur-
ance is available through the employer
to the family of the employee.
(C) ONE-TIME UPDATING OF W–4 INFOR-
MATION OF ALL EMPLOYEES.—The system shall
require each employee to file with the employer,
during a period that the State in which the em-
ployee is employed has prescribed pursuant to
section 466(a)(12)(B) of the Social Security
Act, a W–4 form indicating—
(i) whether the employee owes a quali-
fied child support obligation; and
(ii) if so—
(I) the amount of each such obli-
gation;
(II) the name and address of
each person to whom the obligation is
owed; and
(III) whether health care insur-
ance is available through the employer
to the family of the employee.
(D) QUALIFIED CHILD SUPPORT OBLIGA-
TION.—As used in this subsection, the term
‘‘qualified child support obligation’’ means a
legal obligation to provide child support (as de-
fined in section 462(b) of the Social Security
Act) which is to be collected, in whole or in
part, through wage withholding pursuant to an
order issued by a court of any State or an order
of an administrative process established under
the law of any State.
(3) EMPLOYER OBLIGATIONS.—Each employer
who receives information from an employee pursuant
to paragraph (2) of this subsection shall—
(A) within 10 days after such receipt, for-
ward the information to the agency, designated
pursuant to section 466(a)(11)(A) of the Social
Security Act, of the State in which the em-
ployee is employed by the employer; and
(B) withhold from the income of the em-
ployee the amount indicated on the W–4 form
(or, if the employer has received from the State
a notice that the amount is incorrect, such
other amount as the State indicates is to be so
withheld), in the manner described in section
466(b)(6)(A)(i) of such Act.
(4) NEW
HIRES
IN
CERTAIN
STATES
EX-
CEPTED.—This subsection shall not apply with re-
spect to the employment in a State of any employee
not described in paragraph (2)(B) if the Secretary
of Health and Human Services determines that the
State—
(A) requires all employers in the State to
report to the State all basic employment infor-
mation on new hires;
(B) requires such information to be com-
pared with information in the State registry of
child support orders established pursuant to
section 466(a)(13) of the Social Security Act
and with requests from other States for infor-
mation on the location of noncustodial parents;
(C) maintains updated employment infor-
mation on all individuals employed in the State
in a manner that enables the State to effec-
tively respond to such requests; and
(D) requires all employers in the State, on
receipt of a notice from the State that an em-
ployee owes a qualified child support obligation,
to begin withholding from the income of the
employee the amount of the obligation, in the
manner described in section 466(b)(6)(A)(i) of
the Social Security Act.
(5) EFFECTIVE
DATE.—This subsection shall
take effect on the 1st day of the 1st fiscal year that
begins on or after the date of the enactment of this
Act.
(b) STATE ROLE.—Section 466(a) of the Social Secu-
rity Act (42 U.S.C. 666(a)) is amended by inserting after
paragraph (10) the following:
‘‘(ii) if the information is not so con-
firmed due to a discrepancy between the
information and a copy of a child support
order in the registry, notify the employer
of the discrepancy and the correct informa-
tion using the order developed under sec-
tion 452(a)(12) of this Act; or
‘‘(iii) if the information is not so con-
firmed because the registry does not con-
tain a copy of an order that imposes a
child support obligation on the employee,
search the child support order registries
established pursuant to section 466(a)(13)
of this Act of the States in which the obli-
gation is most likely to have been imposed.
‘‘(12) Procedures under which the State shall—
‘‘(A) designate at least 1 industry, for pur-
poses of section 302(a)(2)(B) of the Common
Sense Welfare Reform Act of 1995, as an in-
dustry with respect to which universal employ-
ment reporting would improve child support en-
forcement in a cost-effective manner;
‘‘(B) prescribe the period during which
individuals employed in the State are to be
required to file with their employers updated
W–4 forms as required by section 302(a)(2)(C)
of such Act; and
‘‘(C) impose a fine—
‘‘(i) against any individual employed
in the State who is required by section
302(a)(2) of such Act to file a W–4 form
with any employer of the individual and
fails to do so; and
‘‘(ii) in an amount equal to the aver-
age cost of noncompliance (as determined
by the State) or $25, whichever is the less-
er, on any employer who fails to comply
with section 302(a)(3) of such Act for any
month.’’.
SEC. 303. STATE INFORMATION SYSTEMS.
(a) STATE REGISTRIES
OF CHILD SUPPORT OR-
DERS.—Section 466(a) of the Social Security Act (42
U.S.C. 666(a)), as amended by section 302(b) of this Act,
is amended by inserting after paragraph (12) the follow-
ing:
‘‘(13) Procedures requiring the State agency
designated pursuant to paragraph (16) to maintain
a child support order registry, which must include—
‘‘(A) a copy of each child support order
being enforced under the State plan; and
‘‘(B) at the request of an individual who
has or is owed a legal obligation to provide child
support (within the meaning of section 462(b)),
a copy of the order that imposes the obliga-
tion.’’.
(b) ACCESSIBILITY OF STATE INFORMATION RELAT-
ED TO CHILD SUPPORT.—
(1) TO OTHER STATES.—Section 466(a) of such
Act (42 U.S.C. 666(a)), as amended by section
302(b)(1) of this Act and subsection (a) of this sec-
tion, is amended by inserting after paragraph (13)
the following:
‘‘(14)(A) Procedures requiring all records of the
State to which the agency administering the plan
has access and determines may be useful in locating
noncustodial parents or collecting child support to be
made accessible to any agency of any State for such
purpose, through the Interstate Locate Network es-
tablished under section 453(g), in accordance with
safeguards established to prevent release of informa-
tion if the release might jeopardize the safety of any
individual.
‘‘(B) The State may impose reasonable fees for
access to State records provided pursuant to sub-
paragraph (A).’’.
(2) TO PRIVATE PARTIES.—Section 466(a) of
such Act (42 U.S.C. 666(a)), as amended by section
302(b)(1) of this Act, subsection (a) of this section,
and paragraph (1) of this subsection, is amended by
inserting after paragraph (14) the following:
‘‘(15) Procedures under which—
‘‘(A) noncustodial parents (and their des-
ignees) must be given access to State parent lo-
cator services to aid in the establishment or en-
forcement of visitation rights, in accordance
with safeguards established to prevent release
of information if the release might jeopardize
the safety of any individual; and
‘‘(B) custodial parents (and their des-
ignees) must be given access to State parent lo-
cator services to aid in the establishment and
enforcement of child support obligations against
noncustodial parents.’’.
SEC. 304. NATIONAL INFORMATION SYSTEMS.
(a) EXPANSION OF PARENT LOCATOR SERVICE.—
Section 453 of the Social Security Act (42 U.S.C. 653)
is amended—
(1) in subsection (a)—
(A) by inserting ‘‘(1)’’ after ‘‘transmit’’;
and
(B) by striking ‘‘enforcing support obliga-
tions against such parent’’ and inserting ‘‘es-
tablishing parentage, establishing, modifying,
and enforcing child support obligations, and (2)
to any noncustodial parent (or the designee of
the noncustodial parent) information as to the
whereabouts of the custodial parent when such
information is to be used to locate such parent
for the purpose of enforcing child visitation
rights and obligations’’;
(2) in subsection (b), by inserting after the 2nd
sentence the following: ‘‘Information shall not be
disclosed to a custodial parent or a noncustodial par-
ent if the disclosure would jeopardize the safety of
the child or either of such parents.’’;
(3) in subsection (d), by inserting ‘‘and such
reasonable fees’’ after ‘‘such documents’’; and
(4) by striking ‘‘absent parent’’ each place such
term appears and inserting ‘‘noncustodial parent’’.
(b) ESTABLISHMENT OF INTERSTATE LOCATE NET-
WORK.—Section 453 of such Act (42 U.S.C. 653) is
amended by adding at the end the following:
‘‘(g) The Secretary shall establish an Interstate Lo-
cate Network linking the Parent Locator Service and all
State databases relating to child support enforcement,
which—
‘‘(1) any State may use to—
‘‘(A) locate any noncustodial parent who
has a legal obligation to provide child support
(as defined in section 462(b)), with respect to
whom such an obligation is being sought, or
against whom visitation rights are being en-
forced, by accessing the records of any Federal,
State, or other source of locate or child support
information, directly from one computer system
to another; or
‘‘(B) direct a locate request to another
State or a Federal agency, or, if the source of
locate information is unknown, broadcast such
a request to selected States or to all States;
‘‘(2) allows on-line and batch processing of lo-
cate requests, with on-line access restricted to cases
in which the information is needed immediately
(such as for court appearances), and batch process-
ing used to ‘troll’ databases to locate individuals or
update information periodically; and
‘‘(3) enables courts to access information on the
Interstate Locate Network through a computer ter-
minal located in the court.’’.
(c) INFORMATION SHARING REGULATIONS.—Section
452(a) of such Act (42 U.S.C. 652(a)) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(9);
(2) by striking the period at the end of the 2nd
sentence of paragraph (10) and inserting ‘‘; and’’;
and
(3) by inserting after paragraph (10) the fol-
lowing:
‘‘(11) prescribe regulations governing informa-
tion sharing among States, within States, and be-
tween the States and the Parent Locator Service—
‘‘(A) to ensure that a State may broadcast
a request for information for the purpose of lo-
cating a noncustodial parent or collecting child
support, and receive a response to the request
in not more than 48 hours; and
‘‘(B) to require a State that is attempting
to locate a noncustodial parent—
‘‘(i) to compare all outstanding cases
with 
information 
in 
the 
employment
records of the State; and
‘‘(ii) if, after complying with clause
(i), the State is unable to locate the
noncustodial parent, then—
‘‘(I) if the State has reason to
believe that the noncustodial parent is
in another particular State or States,
to request such State or States for in-
formation on the noncustodial parent;
and
‘‘(II) if not, to broadcast to all
States a request for such informa-
tion.’’.
SEC. 305. INCOME WITHHOLDING.
(a) STATE ROLE.—Section 466(a) of the Social Secu-
rity Act (42 U.S.C. 666(a)), as amended by sections
302(b)(1) and 303 of this Act, is amended by inserting
after paragraph (15) the following:
‘‘(16) Procedures under which the State shall
designate a public agency to—
‘‘(A) collect child support pursuant to the
State plan; and
‘‘(B) distribute, in accordance with section
457 and with all due deliberate speed, the
amounts collected as child support.
‘‘(17) Procedures under which the State shall
require any court of the State that establishes or
modifies a child support order to transmit a copy of
the order to the State agency designated pursuant to
paragraph (18), unless the order does not provide
for income withholding, and the noncustodial parent
and the custodial parent object.
‘‘(18) Procedures under which the State shall
designate a State agency to use the uniform income
withholding 
order 
developed 
under 
section
452(a)(12) to notify the agency administering the
State plan, any employer of an individual required to
pay child support through income withholding pursu-
ant to an order issued or modified in the State, and
the agency designated pursuant to paragraph (16) of
this subsection of each State in which such an em-
ployer is located, of—
‘‘(A) the identity of the individual;
‘‘(B) the amount to be withheld; and
‘‘(C) the State agency to which the with-
held amount is to be paid.’’.
(b) 
UNIFORM
WITHHOLDING
ORDER.—Section
452(a) of such Act (42 U.S.C. 652(a)), as amended by
section 304(c) of this Act, is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(10);
(2) by striking the period at the end of para-
graph (11) and inserting ‘‘; and’’; and
(3) by inserting after paragraph (11) the fol-
lowing:
‘‘(12) develop a uniform order to be used in all
cases in which income is to be withheld for the pay-
ment of child support, which shall—
‘‘(A) contain the name of the individual
whose income is to be withheld, the number of
children covered by the order, and the individ-
ual or State to whom the withheld income is to
be paid, and
‘‘(B) be in the form necessary to allow for
the service of the order on all sources of in-
come.’’.
(c) STATES REQUIRED TO HAVE LAWS REQUIRING
EMPLOYERS TO WITHHOLD CHILD SUPPORT PURSUANT
TO UNIFORM INCOME WITHHOLDING ORDERS.—Section
466(b) of such Act (42 U.S.C. 666(b)) is amended—
(1) in paragraph (1), by inserting ‘‘and in the
case of each individual employed in the State,’’ be-
fore ‘‘so much’’;
(2) in paragraph (6)(C), by inserting ‘‘of this
paragraph and paragraph (9)(B) of this subsection’’
after ‘‘(A)’’; and
(3) in paragraph (9)—
(A) by inserting ‘‘(A)’’ after ‘‘(9)’’; and
(B) by adding at the end the following:
‘‘(B)(i) As a condition of doing business in the
State, any individual or entity engaged in commerce
in the State shall, upon receipt of a valid income
withholding order for any of its employees—
‘‘(I) immediately provide a copy of the
order to the employee subject to the order; and
‘‘(II) notwithstanding paragraph (4) of
this subsection, withhold, within 10 days after
receipt of the order, income from the employee
in the manner described in paragraph (6)(A)(i)
of this subsection.
‘‘(ii) A valid income withholding order may be
served on the individual or entity directly or by first-
class mail.
‘‘(iii) Any individual or entity who complies
with a valid income withholding order may not be
held liable for wrongful withholding of income from
the employee subject to the order.
‘‘(iv) The State shall impose a civil fine in an
amount equal to the average cost of noncompliance
(as determined by the State) or $25, whichever is
the lesser, on any such individual or entity who re-
ceives a valid income withholding order with respect
to an employee of the individual or entity, and who,
due to negligence, fails to comply with the order
within 10 days after receipt.
‘‘(v) Any individual or entity who imposes a fee
for the administration of child support income with-
holding and related reporting of information shall
not collect more than the average cost of such ad-
ministration, as determined by the State.
‘‘(vi) For purposes of this subparagraph, a valid
income withholding order is a withholding order de-
veloped under section 452(a)(12) that has been is-
sued by a court or agency of a State and is regular
on its face.’’.
SEC. 306. UNIFORM TERMS IN ORDERS.
Section 452(a) of the Social Security Act (42 U.S.C.
652(a)), as amended by sections 304(c) and 305(b) of this
Act, is amended—
(1) in paragraph (11), by striking ‘‘and’’ after
the semicolon;
(2) in paragraph (12), by striking the period at
the end of the 2nd sentence and inserting ‘‘; and’’;
and
(3) by adding at the end the following:
‘‘(13) develop, in conjunction with State execu-
tive and judicial organizations, a uniform abstract of
a child support order, for use by all State courts to