[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4051 Introduced in House (IH)]

103d CONGRESS
  2d Session
                                H. R. 4051

                  To reform the child support system.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 16, 1994

Ms. Woolsey (for herself, Mr. Clyburn, Mr. Frank of Massachusetts, Mr. 
  Scott, and Ms. Velazquez) introduced the following bill; which was 
              referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
                  To reform the child support system.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Secure Assurance for Families 
Everywhere (SAFE) Act''.

SEC. 2. NATIONAL CHILD SUPPORT ORDER REGISTRY.

    (a) Establishment.--
            (1) In general.--The Secretary of the Treasury shall 
        establish in the Internal Revenue Service a national registry 
        of all child support orders.
            (2) Child support order defined.--As used in this section, 
        the term ``child support order'' means an order, issued or 
        modified by a State court or an administrative process 
        established under State law, that requires an individual to 
        make payments for support and maintenance of a child or of a 
        child and the parent with whom the child is living.
    (b) Transmission of Copies of Child Support Orders to the National 
Registry.--Section 466(a) of the Social Security Act (42 U.S.C. 666(a)) 
is amended by inserting after paragraph (11) the following:
            ``(12) Procedures to ensure that--
                    ``(A) each child support order issued or modified 
                in the State contains the social security account 
                number of each parent with rights or obligations under 
                the order;
                    ``(B) within 5 days after the issuance or 
                modification of a child support order in the State, a 
                copy of the order is transmitted to the national child 
                support order registry established under section 2(a) 
                of the Secure Assurance for Families Everywhere (SAFE) 
                Act;
                    ``(C) within 2 years after the date of the 
                enactment of this paragraph, a copy of each child 
                support order being enforced by the State pursuant to 
                this part which has not been transmitted pursuant to 
                subparagraph (B) is transmitted to the national child 
                support order registry;
                    ``(D) within 5 years after the date of the 
                enactment of this paragraph, a copy of each child 
                support issued or modified in the State which has not 
                been transmitted pursuant to subparagraph (B) or (C) 
                and which a party to the order has requested be sent to 
                the national child support order registry be 
                transmitted to the registry; and
                    ``(E) with each order transmitted pursuant to 
                subparagraph (B), (C), or (D)--
                            ``(i) a notice is included as to the date 
                        the order is required or scheduled to be 
                        reviewed by a court or an administrative 
                        process established under State law; and
                            ``(ii) a certified statement of arrears (if 
                        any) owed under the order is included if a 
                        party to the order is receiving services under 
                        the State plan.''.
    (c) Maintenance of Abstracts of Child Support Orders.--The national 
registry shall maintain an abstract of each child support order, which 
shall contain the following information:
            (1) The names, addresses, and social security account 
        numbers of each individual with rights or obligations under the 
        order, to the extent that the authority that issued the order 
        has not prohibited the release of such information.
            (2) The name and date of birth of any child with respect to 
        whom payments are to be made under the order.
            (3) The dollar amount of child support required to be paid 
        on a monthly basis under the order.
            (4) The date the order was issued or most recently 
        modified, and each date the order is required or scheduled to 
        be reviewed by a court or an administrative process established 
        under State law.
            (5) Any orders superseded by the order.
            (6) Such other information as the Secretary of the 
        Treasury, in consultation with the Secretary of Health and 
        Human Services, shall, by regulation require.
    (d) Provision of Child Support Information to Employers.--Upon 
receipt from an employer of a W-4 form completed pursuant to section 
3(b) of this Act by an employee of the employer, the national registry 
shall report to the employer such information as the national registry 
may have as to--
            (1) whether the employee has a legal obligation to provide 
        child support (as defined 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 State 
        court or an order of an administrative process established 
        under State law; and
            (2) the aggregate amount of all such obligations.

SEC. 3. MODIFICATION OF W-4 REPORTING REQUIREMENTS TO PROVIDE FOR 
              REPORTING OF CHILD SUPPORT OBLIGATIONS OF EMPLOYEES.

    (a) 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 requirements of this section.
    (b) Employee Obligations.--Under the system, each employee shall be 
required to file with the employer of the employee, within 5 days after 
the later of the effective date of this section or the date the 
employee is hired, a W-4 form that indicates--
            (1) whether the employee has a legal obligation to provide 
        child support (as defined 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 State 
        court or an order of an administrative process established 
        under State law; and
            (2) if so--
                    (A) the aggregate amount of all such obligations; 
                and
                    (B) the name and address of any person to whom the 
                employee has such an obligation.
    (c) Employer Obligations.--
            (1) In general.--Subtitle C of the Internal Revenue Code of 
        1986 (relating to employment taxes) is amended by inserting 
        after chapter 24 the following new chapter:

  ``CHAPTER 24A--COLLECTION OF CHILD SUPPORT OBLIGATIONS AT SOURCE ON 
                                 WAGES

                              ``Sec. 3411. Child support obligations 
                                        collected at source.

``SEC. 3411. CHILD SUPPORT OBLIGATIONS COLLECTED AT SOURCE.

    ``(a) Requirement of Withholding.--
            ``(1) Wage withholding as indicated by the employee.--Each 
        employer who receives a completed W-4 form from an employee 
        pursuant to section 3(b) of the Secure Assurance for Families 
        Everywhere (SAFE) Act which indicates that the employee has a 
        legal obligation to provide child support (as defined in 
        section 462(b) of the Social Security Act) shall--
                    ``(A) deduct and withhold from the wages of the 
                employee the amount indicated on the W-4 form as a 
                child support obligation;
                    ``(B) send such amount to Secretary; and
                    ``(C) forward the form to the national child 
                support order registry.
            ``(2) Correction of withholding instructions.--If the 
        national child support order registry notifies the employer 
        that an employee has an obligation referred to in paragraph 
        (1), the employer shall--
                    ``(A) deduct and withhold from the wages of the 
                employee the greater of--
                            ``(i) the amount indicated on the W-4 form 
                        as a child support obligation; or
                            ``(ii) the amount that such registry 
                        indicates is to be deducted and withheld from 
                        the wages of the employee to satisfy such 
                        obligation; and
                    ``(B) send the amount so withheld to the Secretary.
    ``(b) Certain Obligations Exempt.--This section shall not apply to 
a child support obligation if the order requiring payment of such 
obligation specifies that such obligation is exempt from the 
requirements of this section.
    ``(c) Liability for Payment.--The employer shall be liable for the 
payment of amounts deducted and withheld under subsection (a) to the 
Secretary.
    ``(d) National Child Support Order Registry.--For purposes of this 
section, the term `national child support order registry' means the 
national registry of all child support orders established under section 
2 of the Secure Assurance for Families Everywhere (SAFE) Act.
    ``(e) Special Rules.--For purposes of this chapter (and so much of 
subtitle F as relates to this chapter), any amount required to be 
deducted and withheld under this section shall be treated as if it were 
a tax withheld under chapter 24 and rules similar to the rules of 
chapter 24 shall apply.''
            (2) Clerical amendment.--The table of chapters for subtitle 
        C of such Code is amended by inserting after the item relating 
        to chapter 24 the following new item:

                              ``Chapter 24A. Child support obligations 
                                        collected at source.''

SEC. 4. COLLECTION OF CHILD SUPPORT.

    (a) In General.--Chapter 77 of the Internal Revenue Code of 1986 
(relating to miscellaneous provisions) is amended by adding at the end 
thereof the following new section:

``SEC. 7524. COLLECTION OF CHILD SUPPORT.

    ``(a) Monthly Payments By Individuals With No or Insufficient Wage 
Withholding for Child Support.--
            ``(1) In general.--Each individual who has a child support 
        payment shortfall for any month shall pay an amount equal to 
        such shortfall to the Secretary not later than the close of 
        such month or such earlier date specified by the Secretary.
            ``(2) Child support payment shortfall.--For purposes of 
        this subsection, the term `child support payment shortfall' 
        means, with respect to any month, an amount equal to the excess 
        (if any) of--
                    ``(A) the amount of the applicable child support 
                obligation for such month, over
                    ``(B) the amount (if any) deducted and withheld 
                under section 3411 from the wages paid to such 
                individual during such month.
            ``(3) Certain obligations exempt.--This subsection shall 
        not apply to a child support obligation if the order requiring 
        payment of such obligation specifies that such obligation is 
        exempt from the requirements of this subsection.
    ``(b) Payments of Arrearages By Individuals No Longer Exempt From 
Withholding or Monthly Payments.--
            ``(1) In general.--If--
                    ``(A) for any month ending with or within the 
                taxable year, a child support obligation was exempt 
                from section 3111 and subsection (a) of this section,
                    ``(B) such obligation ceases to be so exempt during 
                such year, and
                    ``(C) such individual failed to pay the full amount 
                of such obligation for any month ending with or within 
                such year for which such obligation was so exempt,
        then such individual shall pay (not later than the date 
        specified by the Secretary) an amount equal to the excess of 
        the full amount of such obligation for the months referred to 
        in subparagraph (A) over the amount paid before such date under 
        such obligation for such months.
            ``(2) Determination of amount required to be paid.--
        Subsection (d) shall apply to an amount required to be paid 
        under this subsection only after the Secretary's determination 
        of such amount (after a hearing on the record) becomes final.
    ``(c) Reconciliation of Child Support Obligation and Payments on 
Income Tax Return.--
            ``(1) In general.--Each applicable child support obligation 
        of any individual for months ending with or within any taxable 
        year shall be paid--
                    ``(A) not later than the last date (determined 
                without regard to extensions) prescribed for filing the 
                individual's return of tax imposed by chapter 1 for 
                such taxable year, and
                    ``(B)(i) if such return is filed not later than 
                such date, with such return, or
                    ``(ii) in any case not described in clause (i), in 
                such manner as the Secretary may by regulations 
                prescribe.
            ``(2) Offset for withheld child support, etc.--There shall 
        be allowed as a credit against the amount required to be paid 
        under paragraph (1) by an individual the sum of--
                    ``(A) the amount (if any) deducted and withheld 
                under section 3411 from the wages received by such 
                individual during the taxable year,
                    ``(B) the amount (if any) paid by such individual 
                under section 6654 by reason of subsection (f)(3) 
                thereof for such taxable year,
                    ``(C) the amount (if any) paid by such individual 
                under subsections (a) and (b) for such taxable year, 
                and
                    ``(D) in the case of an obligation which was exempt 
                from the requirements of section 3411 and subsection 
                (a) of this section for only a portion of the taxable 
                year, the amount paid (for such portion of the taxable 
                year) by such individual directly to the person to whom 
                the obligation is owed (or, if such person has assigned 
                to a State the right to collect the obligation, the 
                State).
            ``(3) Credit or refund for payments in excess of actual 
        obligation.--There shall be allowed as a credit against the tax 
        imposed by subtitle A for the taxable year an amount equal to 
        the excess (if any) of--
                    ``(A) the aggregate of the amounts described in 
                subparagraphs (A), (B), (C), and (D) of paragraph (2) 
                for such taxable year, over
                    ``(B) the aggregate of the applicable child support 
                obligations of the taxpayer for such taxable year.
        The credit allowed by this paragraph shall be treated for 
        purposes of this title as allowed by subpart C of part IV of 
        subchapter A of chapter 1.
    ``(d) Failure To Pay Amount Owing.--If an individual fails to pay 
the full amount required to be paid under subsection (a), (b), or (c) 
on or before due date for such payment, the Secretary shall assess and 
collect the unpaid amount in the same manner, with the same powers, and 
subject to the same limitations applicable to a tax imposed by subtitle 
C the collection of which would be jeopardized by delay.
    ``(e) Application of Section to Child Support Orders Not Initially 
Subject to Section.--
            ``(1) In general.--In the case of a child support 
        obligation which becomes an applicable child support obligation 
        for any month after January 1996, the amount required to be 
        paid under subsection (a) for the first such month shall be 
        increased by the excess (if any) of--
                    ``(A) the aggregate amount required to be paid 
                under such obligation for all months before such month 
                (including months in prior taxable years), over
                    ``(B) the aggregate amount paid under such 
                obligation for all months before such month.
            ``(2) Cross reference.--

                                ``For agreements to pay tax in 
installments, see section 6159.
    ``(f) Applicable Child Support Obligation.--For purposes of this 
section, the term `applicable child support obligation' means a legal 
obligation to provide child support (as defined in section 462(b) of 
the Social Security Act), except that such term shall not include any 
such obligation for any period during which section 466(a)(12) of the 
Social Security Act (42 U.S.C. 666(a)(12)) does not apply to the child 
support order with respect thereto until the order is registered.''
    (b) Withheld Child Support To Be Shown on W-2.--Subsection (a) of 
section 6051 of such Code is amended by striking ``and'' at the end of 
paragraph (8), by striking the period at the end of paragraph (9) and 
inserting ``, and'', and by inserting after paragraph (9) the following 
new paragraph:
            ``(10) the total amount deducted and withheld as a child 
        support obligation under section 3411.''
    (c) Application of Estimated Tax Penalty.--
            (1) Subsection (f) of section 6654 of such Code (relating 
        to failure by individual to pay estimated income tax) is 
        amended by striking ``minus'' at the end of paragraph (2) and 
        inserting ``plus'', by redesignating paragraph (3) as paragraph 
        (4), and by inserting after paragraph (2) the following new 
        paragraph:
            ``(3) the aggregate applicable child support obligation (as 
        defined in section 7524(a)) of the taxpayer for months ending 
        with or within the taxable year, minus''.
            (2) Paragraph (1) of section 6654(d) of such Code is 
        amended by adding at the end the following new subparagraph:
                    ``(D) Determination of required annual payment for 
                taxpayers required to pay child support.--In the case 
                of a taxpayer who is required under section 7524 to pay 
                an applicable child support obligation (as defined in 
                section 7524) for any month ending with or within the 
                taxable year, the required annual payment shall be the 
                sum of--
                            ``(i) the amount determined under 
                        subparagraph (B) without regard to subsection 
                        (f)(3), plus
                            ``(ii) the aggregate amount of such 
                        obligation for all months ending with or within 
                        the taxable year.''
            (3) Credit for withheld amounts, etc.--Subsection (g) of 
        section 6654 of such Code is amended by adding at the end the 
        following new paragraph:
            ``(3) Child support.--For purposes of applying this 
        section, the sum of--
                    ``(A) amounts deducted and withheld under section 
                3411, and
                    ``(B) amounts paid under subsections (a) and (b) of 
                section 7524,
        shall be deemed to be a payment of the amount described in 
        subsection (f)(3) on the date such amounts were actually 
        withheld or paid, as the case may be.''
    (d) Clerical Amendment.--The table of sections for chapter 77 of 
such Code is amended by adding at the end thereof the following new 
item:

                              ``Sec. 7524. Collection of child 
                                        support.''

SEC. 5. DISTRIBUTION OF PORTION OF CHILD SUPPORT COLLECTED.

    (a) In General.--The Secretary of the Treasury shall pay to the 
appropriate payee the sum of the following amounts which are received 
by the Secretary on account of a child support obligation payable to 
such payee:
            (1) The amounts deducted and withheld under section 3411 of 
        the Internal Revenue Code of 1986.
            (2) The amounts paid under section 6654 of such Code 
        (relating to estimated tax payments) by reason of subsection 
        (f)(3) thereof.
            (3) The amounts paid under section 7524 of such Code 
        (relating to collection of child support).
    (b) Coordination With Child Support Assurance Benefit.--The amount 
required to be paid under subsection (a) which is attributable to a 
child support obligation payable for any month shall not exceed the 
excess (if any) of--
            (1) the amount of such obligation for such month, over
            (2) the child support assurance benefit paid for such month 
        under section 6(a) on account of such obligation.
    (c) Appropriate Payee.--As used in this section, the term 
``appropriate payee'' means, with respect to a child support 
obligation--
            (1) the person to whom the obligation is owed; or
            (2) if such person has assigned to a State the right to 
        collect the obligation, the State.
    (d) Interest Payable on Late Payments By Secretary.--If, within 10 
days after the Secretary of the Treasury receives an amount referred to 
in a paragraph of subsection (a), the Secretary fails to pay any 
corresponding amount required to be paid under subsection (a), the 
Secretary shall pay, in addition to the amount required to be paid, to 
the appropriate payee interest at the underpayment rate (determined 
under section 6621 of such Code, and compounded daily) on such amount 
for the period beginning on such date and ending on the date paid.
    (e) Coordination With Rules Governing Distribution of Child Support 
Collected by a State.--Section 457 of the Social Security Act (42 
U.S.C. 657) is amended by adding at the end the following:
    ``(e) For purposes of this section, amounts received by a State 
from the Secretary of the Treasury pursuant to section 5(a) of the 
Secure Assurance for Families Everywhere (SAFE) Act shall be considered 
amounts collected by the State as child support pursuant to a plan 
approved under this part.''.

SEC. 6. CHILD SUPPORT ASSURANCE.

    (a) Monthly Child Support Assurance Benefits.--
            (1) In general.--The Secretary of the Treasury shall pay to 
        each eligible individual a monthly child support assurance 
        benefit under this subsection.
            (2) Amount of benefit.--
                    (A) General rule.--The amount of the child support 
                assurance benefit payable under this subsection to an 
                eligible individual for a calendar month is--
                            (i) the basic benefit payable to the 
                        individual; multiplied by
                            (ii) the inflation percentage in effect for 
                        the calendar year in which the month occurs.
                    (B) Basic benefit.--For purposes of subparagraph 
                (A), the amount of the basic benefit payable to an 
                eligible individual is--
                            (i) $250 if the eligible individual is such 
                        with respect to only 1 eligible child; or
                            (ii) $300 if the eligible individual is 
                        such with respect to more than 1 eligible 
                        child.
                    (C) Inflation percentage.--For purposes of 
                subparagraph (A), the inflation percentage in effect 
                for a calendar year is 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 12-month period 
                        comprising the immediately preceding calendar 
                        year; exceeds
                            (ii) the average of the Consumer Price 
                        Index (as so defined) for the 12-month period 
                        comprising the 2nd preceding calendar year.
            (3) Timing of payments.--The Secretary of the Treasury 
        shall make payments under this subsection on the 1st day of 
        each calendar month.
    (b) Definitions.--As used in this subsection (a):
            (1) Eligible individual.--The term ``eligible individual'' 
        means--
                    (A) an individual to whom child support is payable 
                with respect to an eligible child pursuant to an order, 
                issued or modified by a State court or an 
                administrative process established under State law, 
                which has been registered in the national child support 
                order registry established under section 2(a) of this 
                Act; and
                    (B) an individual who--
                            (i) more than 18 months before application 
                        for benefits under this section, applied for 
                        services under a State plan approved under part 
                        D of title IV of the Social Security Act; and
                            (ii)(I) has cooperated fully in--
                                    (aa) establishing the paternity of 
                                any child of the individual with 
                                respect to whom such services have been 
                                sought; and
                                    (bb) seeking to establish a child 
                                support order with respect to an 
                                eligible child with respect to whom 
                                such services have been sought; or
                            (II) has refused to cooperate in the 
                        matters described in subclause (I), for good 
                        cause, in accordance with standards prescribed 
                        by the Secretary in regulations, which 
                        standards shall take into consideration the 
                        best interests of the eligible child.
            (2) Eligible child.--The term ``eligible child'' means a 
        child who has not attained 18 years of age.
    (c) Notice to State AFDC Agencies.--The Secretary shall notify each 
State agency referred to in section 402(a)(3) of the Social Security 
Act of each individual in the State to whom the Secretary makes a 
payment under this section and the amount of the payment.
    (d) Effect on AFDC Benefits.--Section 402(a)(8)(A)(vi) of the 
Social Security Act (42 U.S.C. 602(a)(8)(A)(vi)) is amended to read as 
follows:
                    ``(vi) shall, with respect to any family applying 
                for or receiving aid to families with dependent 
                children, disregard the first $100 of the amounts paid 
                during any month to any relative specified in clause 
                (ii) of this subparagraph under section 6(a) of the 
                Secure Assurance for Families Everywhere (SAFE) Act, 
                and \1/2\ of the remainder thereof;''.

SEC. 7. OUTREACH AND ACCESSIBILITY.

    (a) Uniform Application for Child Support Services.--
            (1) Requirement that states use federal application form.--
        Section 454(6)(A) of the Social Security Act (42 U.S.C. 
        654(6)(A)) is amended by inserting ``(which shall be made on 
        the service application form developed under section 
        452(a)(7))'' after ``State''.
            (2) Duty to develop application form.--Section 452(a)(7) of 
        such Act (42 U.S.C. 652(a)(7)) is amended by inserting ``, and 
        develop a form to be used to apply for services established 
        under State plans under this part'' before the semicolon.
    (b) Outreach.--
            (1) State plan requirement.--Section 454 of such Act (42 
        U.S.C. 654) is amended--
                    (A) in paragraph (23), by striking ``and'' after 
                the semicolon;
                    (B) in paragraph (24), by striking the period and 
                inserting ``; and''; and
                    (C) by inserting after paragraph (24) the 
                following:
            ``(25) provide for the establishment and conduct of an 
        ongoing program of outreach to persons eligible for services 
        under the plan, in accordance with regulations issued under 
        section 452(a)(11).''.
            (2) Regulations.--Section 452(a) of such Act (42 U.S.C. 
        652(a)) is amended--
                    (A) in paragraph (9), by striking ``and'' after the 
                semicolon;
                    (B) in paragraph (10), by striking the 2nd period 
                and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(11) issue such regulations as are necessary to ensure 
        that State agencies--
                    ``(A) develop and implement a plan for serving 
                underserved populations;
                    ``(B) use appropriate personnel and printed 
                material for use by persons who do not speak English or 
                whose hearing is impaired; and
                    ``(C) work in cooperation with other Federal, 
                State, and local government agencies and private 
                nonprofit organizations which serve low-income families 
                to publicize the availability of such services and 
                coordinate the delivery of such services.''.

SEC. 8. COMMISSION ON CHILD SUPPORT GUIDELINES.

    (a) Establishment of Commission.--There is hereby established a 
Commission to be known as the Commission on Child Support Guidelines 
(in this section referred to as the ``Commission'') to be composed of 
15 members appointed in accordance with subsection (b)(1).
    (b) Membership.--
            (1) Appointment.--
                    (A) Appointing authorities.--Subject to 
                subparagraph (B), the members of the Commission shall 
                be appointed as follows:
                            (i) 4 members shall be appointed jointly by 
                        the majority and minority leaders of the 
                        Senate, in consultation with the chairman and 
                        ranking minority member of the Committee on 
                        Finance of the Senate.
                            (ii) 4 members shall be appointed jointly 
                        by the Speaker and the minority leader of the 
                        House of Representatives, in consultation with 
                        the chairman and ranking minority member of the 
                        Committee on Ways and Means of the House of 
                        Representatives.
                            (iii) 7 members shall be appointed by the 
                        Secretary of Health and Human Services.
                    (B) Balanced representation.--The persons with 
                authority to make appointments under subparagraph (A) 
                shall, individually and collectively, ensure that the 
                composition of the membership of the Commission 
                reflects a balanced representation of ethnic groups, 
                groups of various economic status, economists, persons 
                familiar with the cost of raising children, custodial 
                and noncustodial parents, judges and hearing officers 
                familiar with the use of guidelines, and persons who 
                have experience with the welfare system.
            (2) Term of office.--Members of the Commission shall serve 
        for the life of the Commission.
            (3) Vacancies.--A vacancy on the Commission shall be filled 
        in the manner in which the original appointment was made and 
        shall not affect the powers or duties of the Commission.
            (4) Transaction of business.--A majority of the members of 
        the Commission shall constitute a quorum for the transaction of 
        business. Decisions of the Commission shall be according to the 
        vote of a simple majority of those present and voting at a 
        properly called meeting.
            (5) First meeting.--As promptly as possible after all of 
        the members of the Commission are appointed, the Secretary of 
        Health and Human Services shall call the first meeting of the 
        Commission.
            (6) Chairperson.--At the first Commission meeting, the 
        members of the Commission shall select a Chairperson from among 
        such members and shall meet thereafter at the call of the 
        Chairperson or of a majority of the members.
    (c) Compensation of Commission Members.--
            (1) No pay.--Members of the Commission shall serve as such 
        without pay.
            (2) Travel expenses and per diem.--Members of the 
        Commission shall be allowed travel expenses, including a per 
        diem allowance in lieu of subsistence, in the same manner as 
        persons serving intermittently in the government service are 
        allowed travel expenses under section 5703 of title 5, United 
        States Code.
    (d) Report to the Congress on Recommended National Child Support 
Guidelines.--The Commission shall submit to the Congress a report that 
contains recommendations for national child support guidelines that 
should be followed by State courts and administrative bodies in setting 
the amount of child support awards. In developing such guidelines, the 
Commission shall consider the best interests of the child.
    (e) Powers of the Commission.--
            (1) Mails.--The Commission may use the United States mails 
        in the same manner and upon the same conditions as other 
        departments and agencies of the United States Government.
            (2) Gifts.--The Commission may accept, use, and dispose of 
        donations of money and property, and may accept such volunteer 
        services of individuals as it deems appropriate.
            (3) Contract authority.--The Commission may procure 
        supplies, services, and property, may make contracts, and may 
        procure temporary and intermittent services under section 
        3109(b) of title 5, United States Code, but only to the extent 
        and in such amounts as are provided in appropriation Acts.
            (4) Rules of procedure.--For purposes of carrying out its 
        duties under subsection (d), the Commission may adopt such 
        rules for its organization and procedures as it deems 
        appropriate.
            (5) Director and staff.--
                    (A) Director.--The Commission shall have a Director 
                who shall be appointed by the Chairperson.
                    (B) Staff.--The Director may appoint and fix the 
                pay of such additional personnel as the Director 
                considers appropriate.
                    (C) Applicability of certain civil service laws.--
                The Director and staff of the Commission may be 
                appointed without regard to the provisions of title 5, 
                United States Code, governing appointments in the 
                competitive service, and may be paid without regard to 
                the provisions of chapter 51 and subchapter III of 
                chapter 53 of such title relating to classification and 
                General Schedule pay rates, except that an individual 
                so appointed may not be paid at a rate in excess of the 
                rate for level IV of the Executive Schedule.
            (6) Staff of federal agencies.--On request of the 
        Chairperson of the Commission, the head of any Federal 
        department or agency may detail, on a reimbursable basis, any 
        of the personnel of such department or agency to the Commission 
        to assist the Commission in carrying out its duties under this 
        section without regard to section 3341 of title 5, United 
        States Code.
    (f) Effective Date.--This section shall take effect on the date of 
the enactment of this Act.
    (g) Termination of the Commission.--
            (1) Termination date.--The Commission shall terminate on 
        the earlier of--
                    (A) the date that the Commission submits to the 
                Congress the report required by subsection (d); or
                    (B) the date that is 2 years after the date of the 
                enactment of this section.
            (2) Disposition of commission property.--
                    (A) Funds.--Any funds held by the Commission on the 
                date of termination of the Commission shall be 
                deposited in the general fund of the Treasury of the 
                United States and credited as miscellaneous receipts.
                    (B) Other property.--Any property (other than 
                funds) held by the Commission on such date shall be 
                disposed of as excess or surplus property.

SEC. 9. RESOURCES.

    (a) Deadline for Issuance of Standards for Staffing State Child 
Support Programs.--Within 1 year after the date of the enactment of 
this Act, the Secretary of Health and Human Services shall establish 
the staffing requirements required to be established under section 
452(a)(2) of the Social Security Act, including the requirement that a 
State shall, to the extent practicable, fill positions created in order 
to carry out the amendments made by this title with personnel of the 
organizational unit referred to in section 454(3) of such Act whose 
positions are eliminated in order to carry out such amendments.
    (b) Incentive for States to Improve Child Support Programs.--
            (1) Increase in federal matching rate.--Section 455(a) of 
        the Social Security Act (42 U.S.C. 655(a)) is amended--
                    (A) in paragraph (1)(A), by inserting ``(or, if 
                applicable, paragraph (3))'' after ``paragraph (2)''; 
                and
                    (B) by adding at the end the following:
    ``(3)(A) Notwithstanding paragraph (2) of this subsection, the 
percent applicable to a State for a quarter in a fiscal year for 
purposes of paragraph (1)(A) of this subsection is 90 percent if the 
most recent review conducted under section 452(a)(4), after the date of 
the enactment of this Act, of the State program operated under this 
part confirms that--
            ``(i) the paternity establishment percentage of the State 
        for the fiscal year immediately preceding the fiscal year in 
        which the quarter occurs equals or exceeds the threshold 
        percentage;
            ``(ii) the State has met the standards included, pursuant 
        to subsections (h) and (i) of section 452, in the standards 
        required by section 452(a)(1), with respect to at least the 
        threshold percentage of the cases in which services are 
        provided under the State plan under this part during the 
        quarter; and
            ``(iii) during the quarter, the State has complied with a 
        plan approved by the Secretary for the State to meet the 
        staffing requirements established under section 452(a)(2).
    ``(B) For purposes of subparagraph (A) of this paragraph, the 
threshold percentage for a State with respect to a quarter is the 
greater of--
            ``(i) 80 percent; or
            ``(ii) the lesser of--
                    ``(I) the threshold percentage for the State with 
                respect to the most recent quarter for which the 
                percent applicable to a State for purposes of paragraph 
                (1)(A) is 90 percent by reason of subparagraph (A) of 
                this paragraph, increased by 2 percentage points; or
                    ``(II) 95 percent.''.
            (2) Effective date.--The amendments made by paragraph (1) 
        shall apply to payments under part D of title IV of the Social 
        Security Act for quarters beginning after the 1-year period 
        that begins with the date of the enactment of this Act.
    (c) Direct Accountability of Child Support Programs.--Section 
403(h) of such Act (42 U.S.C. 603(h))--
            (1) is amended--
                    (A) in paragraph (1)--
                            (i) by striking ``part D'' and inserting 
                        ``this part''; and
                            (ii) by striking ``such part'' and 
                        inserting ``this part''; and
                    (B) in paragraph (3), by striking ``this part'' and 
                inserting ``part A''; and
            (2) as so amended, is hereby transferred to section 455 of 
        such Act, inserted after subsection (b) of such section 455 and 
        designated as subsection (c) of such section 455.
    (d) Maintenance of Effort.--
            (1) State child support programs.--Section 455 of such Act 
        (42 U.S.C. 655) is amended by adding at the end the following:
    ``(f) Notwithstanding any other provision of this section, the 
amount otherwise payable to a State for a quarter under this section 
shall be reduced to the extent that the amount expended by the State to 
carry out the State plan under this part during the most recently 
completed fiscal year is less than the amount so expended during the 
fiscal year that immediately precedes such most recently completed 
fiscal year.''.
            (2) State afdc programs.--Section 403 of such Act (42 
        U.S.C. 603) is amended by inserting after subsection (b) the 
        following:
    ``(c) Notwithstanding any other provision of this section, the 
amount otherwise payable to a State for a quarter under this section 
shall be reduced to the extent that the amount expended by the State to 
carry out the State plan under this part during the most recently 
completed fiscal year is less than the amount so expended during the 
fiscal year that immediately precedes such most recently completed 
fiscal year.''.
    (e) Streamlining of Child Support Audits.--The Secretary of Health 
and Human Services shall streamline the process for conducting audits 
under section 452(a)(4) of the Social Security Act in such a way as 
to--
            (1) reduce the burden on States with programs that are 
        complying substantially with the requirements of part D of 
        title IV of such Act;
            (2) enable the audit process to produce a timely analysis 
        of State programs that are not complying substantially with 
        such requirements; and
            (3) enable the Secretary to shift staff resources to 
        technical assistance in order to help States improve their 
        programs under such part.

SEC. 10. PATERNITY ESTABLISHMENT PROCEDURES.

    (a) In General.--Section 466(a)(5)(C) of the Social Security Act 
(42 U.S.C. 666(a)(5)(C)) is amended--
            (1) by redesignating the 1st sentence as clause (i)(I);
            (2) by inserting after such clause the following:
            ``(II) Such procedures must provide that any such 
        explanation to a mother include the following information:
                    ``(aa) Signing a paternity acknowledgment affidavit 
                is voluntary.
                    ``(bb) Once paternity of a child is established, 
                the father of the child has the right to seek custody 
                of the child or visitation rights with respect to the 
                child.
                    ``(cc) Once paternity of a child is established, 
                the mother of the child has the right to seek from the 
                father of the child financial and medical support for 
                the child.
                    ``(dd) The effect that the courts of the State will 
                give to a signed paternity acknowledgment affidavit.
            ``(III) Such procedures must provide that any such 
        explanation to a possible father include the following 
        information:
                    ``(aa) Signing a paternity acknowledgment affidavit 
                is voluntary.
                    ``(bb) Genetic testing is available and will be 
                provided upon request.
                    ``(cc) The policy of the State with respect to 
                payment for the cost of genetic testing.
                    ``(dd) Once paternity of a child is established, 
                the father of the child has the right to seek custody 
                of the child or visitation rights with respect to the 
                child.
                    ``(ee) Once paternity of a child is established, 
                the mother of the child has the right to seek from the 
                father of the child financial and medical support for 
                the child.
                    ``(ff) The effect that the courts of the State will 
                give to a signed paternity acknowledgment affidavit.
            ``(IV) Such procedures must provide that the information 
        required to be provided under subclause (II) or (III) must be 
        provided--
                    ``(aa) orally and in writing;
                    ``(bb) where appropriate, in the language of the 
                individual to whom the information is required to be 
                provided; and
                    ``(cc) if the individual is blind or hearing-
                impaired, in a manner accessible to the individual.'';
            (3) by indenting the 2nd sentence 2 ems and redesignating 
        such sentence as clause (ii); and
            (4) by inserting after such clause (ii) the following:
            ``(iii) Such procedures must require the State agency 
        responsible for maintaining birth records to offer voluntary 
        paternity establishment services.
            ``(iv) Such procedures must require the State to use only 
        the affidavit developed under section 452(a)(7) for the 
        voluntary acknowledgment of paternity, and to give full faith 
        and credit to such an affidavit signed in any other State.
            ``(v) The Secretary shall prescribe regulations governing 
        voluntary paternity establishment services offered by entities 
        other than hospitals, which shall include a requirement that 
        any State agency that provides such services must use the same 
        materials used by, provide the personnel providing such 
        services with the same training provided by, and evaluate the 
        provision of such services in the same manner as hospital-based 
        voluntary paternity establishment programs.''.
    (b) National Paternity Acknowledgment Affidavit.--Section 452(a)(7) 
of such Act (42 U.S.C. 652(a)(7)), as amended by section 7(a)(2) of 
this Act, is amended by inserting ``, and develop an affidavit to be 
used for the voluntary acknowledgment of paternity'' before the 
semicolon.
    (c) Signed Paternity Acknowledgment Affidavit Conclusively Presumed 
to Establish Paternity.--Section 466(a)(5)(D) of such Act (42 U.S.C. 
666(a)(5)(D)) is amended--
            (1) by inserting ``(i)'' after ``(D)''; and
            (2) by adding at the end the following:
            ``(ii)(I) Such procedures shall provide that the written 
        voluntary acknowledgment of the paternity of a child shall, 
        upon the expiration of the challenge period, create a legal 
        finding of paternity--
                    ``(aa) without any further action; or
                    ``(bb) at the option of the State, after a court or 
                administrative agency with which the document 
                containing the acknowledgment has been filed within 5 
                business days after the expiration of the challenge 
                period issues an order establishing such paternity.
            ``(II) As used in subclause (I), the term `challenge 
        period' means, with respect to an acknowledgment of paternity--
                    ``(aa) the 30-day period that begins on the date of 
                the acknowledgment; or
                    ``(bb) if the person who executed the 
                acknowledgment undergoes genetic testing within 30 days 
                after the date of the acknowledgment, the 30-day period 
                that begins with the date the person is notified of the 
                results of the genetic testing.''.

SEC. 11. COORDINATION OF COLLECTION ACTIVITIES.

    Section 452 of the Social Security Act (42 U.S.C. 652) is amended 
by adding at the end the following:
    ``(j)(1) Not later than 1 year after the date of the enactment of 
this subsection, the Secretary and the Secretary of the Treasury shall 
jointly issue regulations governing the coordination of State 
activities in collecting child support pursuant to State plans approved 
under this part and the activities of the Secretary of the Treasury in 
collecting child support under section 7524 of the Internal Revenue 
Code of 1986.
    ``(2) The Secretary shall periodically report to the Congress on 
any legislation needed to facilitate the coordination of such child 
support collection activities.''.

SEC. 12. EFFECTIVE DATE.

    Except as otherwise provided in this Act, this Act and the 
amendments made by this Act shall take effect on January 1, 1996, and 
shall apply to--
            (1) child support orders issued or modified on or after 
        such date, and, beginning 3 years after such date, to all 
        orders whether issued before, on, or after such date; and
            (2) payments under part D of title IV of the Social 
        Security Act for quarters beginning on or after such date.

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