SECTION 1. CHILD SUPPORT AUDIT ADVISORY COMMITTEE.

    (a) Establishment.--Not later than 60 days after the date of the 
enactment of this Act, the Secretary of Health and Human Services (in 
this Act referred to as the ``Secretary'') shall establish a committee 
which shall be known as the Child Support Audit Advisory Committee (in 
this Act referred to as the ``Committee'').
    (b) Duties.--The Committee shall assist the Secretary in--
            (1) developing revised audit criteria and standards to be 
        used pursuant to section 452(a)(4) of the Social Security Act 
        based on--
                    (A) common data elements which are defined, 
                collected, and reported in a uniform manner from each 
                State;
                    (B) numeric measures of the outcomes of the child 
                support enforcement program under part D of title IV of 
                such Act; and
                    (C) numeric measures for assessing compliance with 
                the regulations issued by the Secretary pursuant to 
                subsections (h) and (i) of section 452 of such Act;
            (2) formulating a definition of substantial compliance that 
        is based on such revised audit criteria and standards;
            (3) determining the period of time after interim or final 
        Federal regulations are issued implementing such revised audit 
        criteria and standards after which a State may be audited to 
        determine compliance with such regulations; and
            (4) recommending to the Congress such legislation as may be 
        necessary, with respect to the financing of State child support 
        programs under part D of title IV of such Act, to enhance the 
        effectiveness of audits required to be conducted under section 
        452(a)(4) of such Act and the associated penalty process under 
        section 403(h) of such Act.
    (c) Membership.--The Committee shall be composed of not less than 6 
members appointed by the Secretary, including--
            (1) at least 1 director of a State child support 
        enforcement program operating under part D of title IV of the 
        Social Security Act;
            (2) at least 1 commissioner of a State human services 
        agency;
            (3) individuals who have demonstrated expertise in the 
        development of quantitative and qualitative measures for 
        performance-based audits; and
            (4) at least 2 representatives of recipients of child 
        support enforcement services.
    (d) Procedure.--
            (1) Participation of the secretary.--The Secretary (or a 
        designee of the Secretary) shall be an ex officio member of the 
        Committee, and shall not vote on matters before the Committee.
            (2) Meetings.--The Committee shall meet at the call of the 
        Secretary or a designee of the Secretary.
    (e) Compensation.--
            (1) In general.--No member of the Committee may receive 
        compensation for service on the Committee.
            (2) Travel expenses.--Each member of the Committee shall 
        receive travel expenses, including per diem in lieu of 
        subsistence, in accordance with sections 5702 and 5703 of title 
        5, United States Code.
    (f) Administrative Support.--Upon request of the Committee, the 
Secretary shall provide to the Committee the administrative support 
services necessary for the Committee to carry out its duties under this 
Act.
    (g) Inapplicability of the Federal Advisory Committee Act.--The 
Federal Advisory Committee Act shall not apply to the Committee.
    (h) Report.--Within 180 days after the date of the enactment of 
this Act, the Committee shall submit to the Secretary a report that 
contains proposed criteria and standards for conducting audits under 
section 452(a)(4) of the Social Security Act, which emphasize program 
outcomes.

SEC. 2. NEW CHILD SUPPORT AUDIT PROCESS.

    (a) In General.--After consultation with the Committee, the 
Secretary shall--
            (1) in accordance with subsection (b), promulgate new 
        criteria and standards for conducting audits under section 
        452(a)(4) of the Social Security Act, which emphasize program 
        outcomes; and
            (2) not later than the 1st day of the 12th calendar month 
        beginning after the date of the enactment of this Act, 
        recommend to the Congress such legislation as may be necessary, 
        with respect to the financing of State child support programs 
        under part D of title IV of the Social Security Act, to enhance 
        the effectiveness of such audits and the associated penalty 
        process under section 403(h) of the Social Security Act.
    (b) Timing.--
            (1) Notice of proposed rulemaking.--Not later than 270 days 
        after the date of the enactment of this Act, the Secretary 
        shall issue a notice of proposed rulemaking with respect to the 
        audit criteria and standards required by subsection (a)(1).
            (2) Final regulations.--Not later than the first day of the 
        12th calendar month beginning after the date of the enactment 
        of this Act, and after allowing not less than 45 days for 
        public comment on the proposed rulemaking required by paragraph 
        (1) of this subsection, the Secretary shall issue final 
        regulations with respect to the audit criteria and standards 
        required by subsection (a)(1).
Output: Directs the Secretary of Health and Human Services to:  (1) establish the Child Support Audit Advisory Committee to assist in developing new criteria and standards for audits of State child support agencies which emphasize program outcomes; and (2) issue final regulations to implement such criteria and standards.