[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4494 Introduced in House (IH)]

103d CONGRESS
  2d Session
                                H. R. 4494

  To guarantee the provision of minimum child support benefits and to 
              reform the child support enforcement system.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 25, 1994

  Mr. Nadler (for himself, Mr. Peterson of Florida, Mr. Payne of New 
  Jersey, Mr. Engel, Mr. Frost, Mr. Hochbrueckner, and Ms. Velazquez) 
   introduced the following bill; which was referred jointly to the 
Committees on Ways and Means, Energy and Commerce, Banking, Finance and 
          Urban Affairs, Agriculture, and Education and Labor

_______________________________________________________________________

                                 A BILL


 
  To guarantee the provision of minimum child support benefits and to 
              reform the child support enforcement system.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Child Security Act 
of 1994''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Universal child support assurance system.
Sec. 3. National child support order registry.
Sec. 4. Collection of child support through wage withholding and the 
                            income tax collection system.
Sec. 5. Distribution by the Department of Health and Human Services of 
                            child support collected by the Internal 
                            Revenue Service.
Sec. 6. State role in collection and distribution of child support.
Sec. 7. National Child Support Guideline Commission.
Sec. 8. Uniform termination of child support obligations.
Sec. 9. Reallocation of resources.
Sec. 10. Direct accountability of child support enforcement programs.
Sec. 11. Social services demonstration projects.

SEC. 2. UNIVERSAL CHILD SUPPORT ASSURANCE SYSTEM.

    (a) Monthly Child Support Assurance Benefits.--
            (1) Entitlement.--Each eligible individual who has applied 
        for benefits under this subsection shall be entitled to payment 
        of 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 for the month; multiplied by
                            (ii) the inflation percentage in effect for 
                        the month for the locality of the United States 
                        in which the individual resides.
                    (B) Basic benefit.--For purposes of subparagraph 
                (A), the amount of the basic benefit payable to an 
                eligible individual for a month is--
                            (i) \1/12\ of the sum of--
                                    (I) $3,000 for the 1st eligible 
                                child of the individual; and
                                    (II) $1,000 for each additional 
                                eligible child of the individual; 
                                multiplied by
                            (ii) the sum of--
                                    (I) 1.00; plus
                                    (II) the locality adjustment in 
                                effect for the month for the locality 
                                of the United States in which the 
                                individual resides.
                    (C) Locality adjustment.--
                            (i) In general.--For purposes of 
                        subparagraph (B)(ii)(II), the locality 
                        adjustment in effect for a month for a locality 
                        is the percentage (if any) by which the cost of 
                        living in the locality for the calendar year 
                        immediately preceding the calendar year in 
                        which the month occurs exceeds the cost of 
                        living in the locality with the least such cost 
                        for such immediately preceding calendar year.
                            (ii) Methodology.--The Secretary shall 
                        determine the cost of living in a locality for 
                        a calendar year for purposes of clause (i) by 
                        using an average of retail market prices for 
                        the locality during the calendar year. The 
                        retail market prices shall be selected and used 
                        under the same methodology used by the Bureau 
                        of Labor Statistics in developing the Consumer 
                        Price Index for all Urban Consumers.
                    (D) Inflation percentage.--For purposes of 
                subparagraph (A):
                            (i) In general.--The inflation percentage 
                        in effect for a month for a locality shall be 
                        the greater of--
                                    (I) the percentage (if any) by 
                                which the cost of living in the 
                                locality for the calendar year 
                                immediately preceding the calendar year 
                                in which the month occurs exceeds the 
                                cost of living in the locality for the 
                                calendar year 2nd preceding the 
                                calendar year in which the month 
                                occurs; or
                                    (II) the inflation percentage in 
                                effect for the locality for the 
                                calendar year immediately preceding the 
                                calendar year in which the month 
                                occurs.
                            (ii) 1995.--The inflation percentage in 
                        effect for a locality for calendar year 1995 
                        shall be zero.
            (3) Timing of payments.--The Secretary shall make payments 
        under this subsection on the 1st day of each calendar month.
    (b) Notice To Be Included With Payment.--Upon making any payment 
under this section to an eligible individual, the Secretary shall 
transmit to the individual and the State agency referred to in section 
402(a)(3) of the Social Security Act of the State in which the 
individual resides a notice that specifies--
            (1) the name of the individual;
            (2) the amount of the payment;
            (3) the method used to determine the amount of the payment;
            (4) the date the payment is made; and
            (5) the portion of the payment that is to be included in 
        the income of the eligible individual for purposes of the State 
        program of aid to families with dependent children under part A 
        of title IV of the Social Security Act.
    (c) Notice of Eligibility for Benefits.--
            (1) In general.--The Secretary shall notify each individual 
        who has responsibility for meeting the daily needs of an 
        eligible child, and each individual who owes child support with 
        respect to the child of--
                    (A) entitlement to benefits under this section with 
                respect to the child;
                    (B) the system for collecting and distributing 
                child support (including past-due support) owed with 
                respect to the child;
                    (C) the rights and responsibilities of the 
                individual under the system; and
                    (D) the penalties for failure to cooperate in the 
                collection of child support under the system.
            (2) Timing.--The Secretary shall provide the notice 
        required by paragraph (1) with respect to an eligible child--
                    (A) if the Secretary determines that the child is 
                an eligible child by October 1, 1995, not later than 
                such date;
                    (B) if the Secretary determines that the child is 
                an eligible child after such date, then--
                            (i) if a child support order has been 
                        issued with respect to the child, within 5 days 
                        after the national registry established under 
                        section 3(a) receives a copy of the order; or
                            (ii) if a child support order has not been 
                        issued with respect to the child, upon the 
                        determination of the Secretary that the child 
                        is an eligible child.
    (d) Federal Administration of State or Local Supplementary Child 
Support Assurance Benefit Payments.--
            (1) In general.--The Secretary may enter into an agreement, 
        with any qualified political subdivision of the United States 
        under which the Secretary will, on behalf of the subdivision, 
        pay a supplementary child support assurance benefit to all 
        eligible individuals who reside in the subdivision, in 
        accordance with such procedural rules or other general 
        administrative provisions as the Secretary finds necessary to 
        achieve efficient and effective administration of the child 
        support assurance benefit program under this section and the 
        supplementary child support assurance benefit program of the 
        subdivision.
            (2) Administration fee.--The Secretary shall assess each 
        subdivision with which an agreement under subsection (a) has 
        been entered into an administration fee in an amount equal to--
                    (A) the number of payments made by the Secretary on 
                behalf of the subdivision under this subsection for any 
                month; multiplied by
                    (B) $1.67.
            (3) Fees to be deposited in the treasury.--All 
        administration fees collected pursuant to paragraph (2) shall 
        be deposited in the general fund of the Treasury of the United 
        States as miscellaneous receipts.
            (4) Definitions.--As used in this subsection:
                    (A) Qualified political subdivision.--The term 
                ``qualified political subdivision'' means any State or 
                any political subdivision of a State which has a 
                supplementary child support assurance benefit program.
                    (B) State.--The term ``State'' includes the 
                District of Columbia.
                    (C) Supplementary child support assurance benefit 
                program.--The term ``supplementary child support 
                assurance benefit program'' means, with respect to a 
                subdivision, any program of the subdivision under which 
                cash benefits are payable to all and only those 
                residents of the subdivision who are eligible 
                individuals.
    (e) Regulations.--The Secretary may prescribe such regulations as 
may be necessary to carry out this section.
    (f) Definitions.--As used in this section:
            (1) Child support.--The term ``child support'' has the 
        meaning given such term by section 462(b) of the Social 
        Security Act.
            (2) Eligible individual.--The term ``eligible individual'' 
        means an individual who has responsibility for meeting the 
        daily needs of an eligible child.
            (3) Eligible child.--The term ``eligible child'' means--
                    (A) a child who has not attained 18 years of age 
                with respect to whom child support is owed under a 
                court order, or an order of an administrative process 
                established under State law; and
                    (B) any other child who has not attained 18 years 
                of age if the State in which the child resides 
                determines that the custodial parent of the child--
                            (i) has good cause for not seeking child 
                        support with respect to the child; or
                            (ii) has cooperated in seeking child 
                        support with respect to the child.
            (4) Locality.--The term ``locality'' means a metropolitan 
        statistical area of the United States (as defined by the Bureau 
        of the Census for census purposes).
            (5) Past-due support.--The term ``past-due support'' has 
        the meaning given such term by section 464(c)(1) of the Social 
        Security Act.
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of Health and Human Services.
    (g) 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 by striking 
``the first $50 of any child support payments for such month received 
in that month'' and inserting ``\1/2\ of any amount received for the 
month under section 2(a) of the Child Security Act of 1994''.
    (h) Effect on Medicaid Benefits.--Section 1902(a)(17) of such Act 
(42 U.S.C. 1396a(a)(17)) is amended--
            (1) by striking ``and (D)'' and inserting ``(D)''; and
            (2) by striking ``; and provide'' and inserting the 
        following: ``, and (E) provide for disregarding 50 percent of 
        any income consisting of amounts paid under section 2(e) of the 
        Child Security Act of 1994; and provide''.
    (i) Effect on Housing Benefits.--Notwithstanding any other 
provision of law, any amount paid to a member of a family under 
subsection (a) of this section may not be considered as income for 
purposes of determining the eligibility of the family for assistance or 
occupancy in a unit assisted, the amount of benefits received by or 
provided on behalf of the family, or the amount paid by the family for 
rent for a unit assisted, under--
            (1) the United States Housing Act of 1937;
            (2) title V of the Housing Act of 1949;
            (3) section 101 of the Housing and Urban Development Act of 
        1965; or
            (4) section 221(d)(3), 235, or 236 of the National Housing 
        Act.
    (j) Effect on Benefits Under the Food Stamp Act of 1977.--
            (1) Amendments.--Section 5(d) of the Food Stamp Act of 1977 
        (7 U.S.C. 2014(d)) is amended--
                    (A) by striking ``and (16)'' and inserting 
                ``(16)'', and
                    (B) by inserting before the period at the end the 
                following: ``, and (17) any payment received under 
                section 2(a) of the Child Security Act of 1994''.
            (2) Application of amendments.--The amendments made by 
        paragraph (1) shall not apply with respect to certification 
        periods beginning before the effective date of this section.
    (k) Effective Date.--This section and the amendments made by this 
section shall take effect on January 1, 1995.

SEC. 3. NATIONAL CHILD SUPPORT ORDER REGISTRY.

    (a) Establishment.--Not later than October 1, 1995, the Secretary 
of Health and Human Services shall establish a national registry of 
child support orders issued or modified by any State court or 
administrative process established under State law.
    (b) Maintenance of Abstracts of Child Support Orders.--The 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--
                    (A) the individual obligated to make payments under 
                the order; and
                    (B) the individual entitled to receive such 
                payments.
            (2) The name, address, and taxpayer identification number 
        of any employer of the individual referred to in paragraph 
        (1)(A).
            (3) The name and date of birth of any child with respect to 
        whom payments are to be made under the order.
            (4) The dollar amount of child support required to be paid 
        under the order and the times when such payments are due.
            (5) The date the order was issued or most recently 
        modified.
            (6) Any such orders superseded by the order.
            (7) Any other such orders issued with respect to the child.
    (c) Access of Secretary of the Treasury to the Registry.--The 
Secretary of Health and Human Services shall, upon request of the 
Secretary of the Treasury, provide the Secretary of the Treasury with 
access to the information contained in the registry.
    (d) Child Support Order Defined.--As used in this section, the term 
``child support order'' means an order requiring payments for support 
and maintenance of a child or of a child and the parent with whom the 
child is living.
    (e) 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) Not later than January 1, 1996, procedures to ensure 
        that a copy of any child support order issued or modified in 
        the State (whether before or after the enactment of this 
        paragraph) is transmitted immediately to the national child 
        support order registry established under section 3(a) of the 
        Child Security Act of 1994.''.
    (f) Inclusion of Social Security Numbers in Child Support Orders.--
Section 466(a) of the Social Security Act (42 U.S.C. 666(a)), as 
amended by subsection (e) of this section, is amended by inserting 
after paragraph (12) the following:
            ``(13) Not later than January 1, 1996, procedures to ensure 
        that each child support order issued or modified in the State 
        (whether before or after the enactment of this paragraph) 
        contains the social security account number of each parent with 
        rights or obligations under the order.''.

SEC. 4. COLLECTION OF CHILD SUPPORT THROUGH WAGE WITHHOLDING AND THE 
              INCOME TAX COLLECTION SYSTEM.

    (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) Employee To Notify Employer of Child Support Obligation.--
            ``(1) In general.--Each employee shall specify, on each 
        withholding certificate furnished to such employee's employer--
                    ``(A) the monthly amount (if any) of each child 
                support obligation of such employee, and
                    ``(B) the TIN of the individual to whom each such 
                obligation is owed.
            ``(2) When certificate filed.--In addition to the other 
        required times for filing a withholding certificate, a new 
        withholding certificate shall be filed within 10 days after the 
        date of any change in the information specified under paragraph 
        (1).
            ``(3) Period certificate in effect.--Any specification 
        under paragraph (1) shall continue in effect until another 
        withholding certificate takes effect which specifies a change 
        in the information specified under paragraph (1).
    ``(b) Employer Obligations.--
            ``(1) In general.--Every employer who receives a 
        certificate under subsection (a) that specifies that the 
        employee has a child support obligation for any month shall 
        deduct and withhold from the wages paid by such employer to 
        such employee during each month that such certificate is in 
        effect an additional amount equal to the amount of such 
        obligation or such other amount as may be specified by the 
        Secretary under subsection (c).
            ``(2) Notice to secretary.--
                    ``(A) In general.--Every employer who receives a 
                withholding certificate shall, within 10 business days 
                after such receipt, submit a copy of such certificate 
                to the Secretary.
                    ``(B) Exception.--Subparagraph (A) shall not apply 
                to any withholding certificate if--
                            ``(i) a previous withholding certificate is 
                        in effect with the employer, and
                            ``(ii) the information shown on the new 
                        certificate with respect to child support is 
                        the same as the information with respect to 
                        child support shown on the certificate in 
                        effect.
            ``(3) When withholding obligation takes effect.--Any 
        withholding obligation with respect to a child support 
        obligation of an employee shall commence with the first payment 
        of wages after the certificate is furnished.
    ``(c) Secretary To Verify Amount of Child Support Obligation.--
            ``(1) Verification of information specified on withholding 
        certificates.--Within 10 business days after receiving a 
        withholding certificate of any employee, the Secretary shall 
        determine whether the information available to the Secretary 
        under section 3 of the Child Security Act of 1994 indicates 
        that such employee has a child support obligation.
            ``(2) Employer notified if increased withholding is 
        required.--If the Secretary determines that an employee's child 
        support obligation is greater than the amount (if any) shown on 
        the withholding certificate in effect with respect to such 
        employee, the Secretary shall, within 5 business days after 
        such determination, notify the employer to whom such 
        certificate was furnished of the correct amount of such 
        obligation, and such amount shall apply in lieu of the amount 
        (if any) specified by the employee with respect to payments of 
        wages by the employer after the date the employer receives such 
        notice.
            ``(3) Determination of correct amount.--In making the 
        determination under paragraph (2), the Secretary shall take 
        into account whether the employee is an employee of more than 1 
        employer and appropriately adjust the amount of the required 
        withholding from each such employer.
    ``(d) Monthly Payments By Individuals With Insufficient Child 
Support Withholding.--Each individual who has a child support 
obligation for any month shall pay, not later than the close of such 
month, to the Secretary an amount equal to the excess (if any) of--
            ``(1) the amount of such obligation for such month, over
            ``(2) the amount (if any) deducted and withheld under 
        subsection (b) from the wages paid to such individual during 
        such month.
    ``(e) Child Support Obligations Required To Be Paid With Income Tax 
Return.--
            ``(1) In general.--The 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 his 
                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) Credit for amount previously paid.--The amount 
        required to be paid by an individual under paragraph (1) shall 
        be reduced by the sum of--
                    ``(A) the amount collected under this section with 
                respect to periods during the taxable year, plus
                    ``(B) the amount (if any) paid by such individual 
                under section 6654 by reason of subsection (f)(3) 
                thereof for such taxable year.
    ``(f) Failure To Pay Amount Owing.--If an individual fails to pay 
the full amount required to be paid under subsection (d) or (e) 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.
    ``(g) Credit or Refund for Withheld Child Support in Excess of 
Actual Obligation.--There shall be allowed as a credit against the 
taxes imposed by subtitle A for the taxable year an amount equal to the 
excess (if any) of--
            ``(1) the aggregate of the amounts described in 
        subparagraphs (A) and (B) of subsection (e)(2), over
            ``(2) the actual child support obligation of the taxpayer 
        for such taxable year.
The credit allowed by this subsection shall be treated for purposes of 
this title as allowed by subpart C of part IV of subchapter A of 
chapter 1.
    ``(h) Child Support Treated as Taxes.--
            ``(1) In general.--For purposes of penalties and interest 
        related to failure to deduct and withhold taxes, amounts 
        required to be deducted and withheld under this section shall 
        be treated as taxes imposed by chapter 24.
            ``(2) Other rules.--Rules similar to the rules of sections 
        3403, 3404, 3501, 3502, 3504, and 3505 shall apply with respect 
        to child support obligations required to be deducted and 
        withheld.
    ``(i) Remittance of Child Support Collected By Secretary.--Payments 
received by the Secretary pursuant to this section or by reason of 
section 6654(f)(3) which are attributable to a child support obligation 
payable for any month shall be paid (to the extent such payments do not 
exceed the amount of such obligation for such month) within 10 days to 
the Secretary of Health and Human Services for disbursement under 
section 2(b) of the Child Security Act of 1994.
    ``(j) Definitions and Special Rules.--
            ``(1) Definitions.--For purposes of this section--
                    ``(A) Withholding certificate.--The term 
                `withholding certificate' means the withholding 
                exemption certificate used for purposes of chapter 24.
                    ``(B) Business day.--The term `business day' means 
                any day other than a Saturday, Sunday, or legal holiday 
                (as defined in section 7503).
            ``(2) Timely mailing.--Any notice under subsection (b)(2) 
        or (c)(2) which is delivered by United States mail shall be 
        treated as given on the date of the United States postmark 
        stamped on the cover in which such notice is mailed.
            ``(3) Modification of certificate.--The Secretary shall 
        modify the withholding certificate so that the information 
        required to be furnished under subsection (a)(1) may be 
        included on such certificate.''
    (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 7524(b).''
    (c) Application of Estimated Tax.--
            (1) In general.--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 child support obligations 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 
                a 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 obligations.--For purposes of applying 
        this section, the amounts collected under 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) Repeal of Refund Offset, Etc.--
            (1)(A) Subsections (c) and (g) of section 6402 of such Code 
        are hereby repealed.
            (B) Paragraph (2) of section 6402(d) of such Code is 
        amended by striking ``after such overpayment is reduced'' and 
        all that follows through ``Security Act and''.
            (C) Subsection (e) of section 6402 is amended by striking 
        ``(c) or''.
            (2)(A) Section 6305 of such Code is hereby repealed.
            (B) The table of sections for subchapter A of chapter 64 of 
        such Code is amended by striking the item relating to section 
        6305.
    (e) Office of Child Advocate.--
            (1) In general.--There is established in the Department of 
        Health and Human Services an office to be known as the ``Office 
        of the Child Advocate''. Such office, including all problem 
        resolution officers, shall be under the supervision and 
        direction of an official to be known as the `Child Advocate' 
        who shall be appointed by the President by and with the advice 
        and consent of the Senate, and who shall report directly to the 
        President. The Child Advocate shall be entitled to compensation 
        at the same rate as the Chief Counsel for the Internal Revenue 
        Service.
            (2) Functions of office.--
                    (A) In general.--It shall be the function of the 
                Office of the Child Advocate to--
                            (i) assist individuals to whom child 
                        support obligations are owned in resolving 
                        problems relating to the collection and payment 
                        of such obligations by the Internal Revenue 
                        Service,
                            (ii) to the extent possible, propose 
                        changes in the administrative practices of the 
                        Internal Revenue Service to mitigate problems 
                        identified under clause (i), and
                            (iii) identify potential legislative 
                        changes which may be appropriate to mitigate 
                        such problems.
            (3) Responsibilities of commissioner of internal revenue 
        service.--The Commissioner of Internal Revenue shall establish 
        procedures requiring a formal response to all recommendations 
        submitted to the Commissioner by the Child Advocate and shall 
        submit an annual report to the Congress of the progress of the 
        Internal Revenue Service in resolving problems identified by 
        the Child Advocate.
    (f) 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.''
    (g) Effective Date.--The amendments made by this section shall 
apply to calendar years after 1995, and to taxable years beginning in 
such calendar years. For purposes of section 7524 of the Internal 
Revenue Code of 1986, as added by this section, all employees employed 
on January 1, 1996, shall be treated as commencing employment on such 
date but such employees shall be treated as meeting the requirement of 
subsection (a)(2) of such section 7524 if the certificate referred to 
in such subsection is filed not later than March 1, 1996.

SEC. 5. DISTRIBUTION BY THE DEPARTMENT OF HEALTH AND HUMAN SERVICES OF 
              CHILD SUPPORT COLLECTED BY THE INTERNAL REVENUE SERVICE.

    (a) Collected Child Support To Be Paid to Custodial Parent After 
Reimbursement of Federal and State Aid.--Upon receipt of an amount 
collected from an employee during a calendar month under section 7524 
of the Internal Revenue Code of 1986, or under section 6654 of such 
Code by reason of subsection (f)(3) thereof, on account of a child 
support obligation owed with respect to an individual for the month, 
the Secretary shall distribute the amount as follows:
            (1) The amount shall be paid to the Federal Government to 
        the extent necessary to reimburse the Federal Government for 
        payments made to the individual for the month under section 
        2(a) of this Act.
            (2) Amounts in excess of any amount paid under paragraph 
        (1) of this subsection shall be paid to the States to the 
        extent necessary to reimburse the States for all payments made 
        to the individual under State plans approved under part A of 
        title IV of the Social Security Act.
            (3) Amounts in excess of any amount paid under paragraphs 
        (1) and (2) of this subsection shall be paid to any other State 
        which has provided aid to the individual under the State plan 
        approved under part A of title IV of the Social Security Act to 
        the extent necessary to reimburse such other State for payments 
        of such aid.
            (4) Amounts in excess of any amount paid under paragraphs 
        (1), (2), and (3) of this subsection shall be paid to the 
        individual.
    (b) Notice to Accompany Payment to Custodial Parent.--Upon making 
any payment under this section to an eligible individual, the Secretary 
shall transmit to the individual and the State agency referred to in 
section 402(a)(3) of the Social Security Act of the State in which the 
individual resides a notice that specifies--
            (1) the name of the individual;
            (2) the amount of the payment;
            (3) the method used to determine the amount of the payment;
            (4) the date the payment is made;
            (5) the portion of the payment that is to be included in 
        the income of the eligible individual for purposes of the State 
        program of aid to families with dependent children under part A 
        of title IV of the Social Security Act; and
            (6) in the case of a payment that includes a payment that 
        has been in arrears--
                    (A) the amount of the arrearage payment; and
                    (B) a detailed statement of the status of child 
                support payments owed to the individual by the employee 
                referred to in subsection (a) that are in arrears.
    (c) Effective Date.--This section shall take effect on January 1, 
1996.

SEC. 6. STATE ROLE IN COLLECTION AND DISTRIBUTION OF CHILD SUPPORT.

    (a) Assignment of Rights to Past-Due Support.--
            (1) Children receiving afdc.--Section 402(a)(26) of the 
        Social Security Act (42 U.S.C. 602(a)(26) is amended--
                    (A) in subparagraph (A), by inserting ``(except, in 
                the case of child support, only rights to past-due 
                support (as defined in section 464(c)(1)))'' after 
                ``support''; and
                    (B) in subparagraph (B), by inserting ``(except, in 
                the case of child support payments, only past-due 
                support payments)'' after ``support payments''.
            (2) Children receiving foster care maintenance payments.--
        Section 471(a)(17) of such Act (42 U.S.C. 671(a)(17)) is 
        amended by striking ``support'' and inserting ``past-due 
        support (as defined in section 464(c)(1))''.
    (b) Collection of Only Past-Due Support.--Section 464(c)(1) of such 
Act (42 U.S.C. 664(c)(1)) is amended--
            (1) by striking ``term `past-due support' means'' and 
        inserting ``terms `support' and `past-due support' mean''; and
            (2) by inserting ``, for any period that ends before 
        January 1, 1996'' before the period.
    (c) Distribution of Past-Due Support.--
            (1) In general.--Section 457(b)(1) of such Act (42 U.S.C. 
        657(b)(1)) is amended--
                    (A) by striking ``the first $50 of payments for a 
                month received in that month, and''; and
                    (B) by inserting ``(if the month ended before 
                January 1, 1996)'' after ``prior month''.
            (2) Notice of payment to individual.--Section 457 of such 
        Act (42 U.S.C. 657) is amended by adding at the end the 
        following:
    ``(e) Upon making any payment under this section to a family, the 
State shall transmit to the family and to the Secretary a notice that 
specifies--
            ``(1) the name of the individual to whom the payment is 
        made;
            ``(2) the amount of the payment;
            ``(3) the method used to determine the amount of the 
        payment;
            ``(4) the date the payment is made;
            ``(5) the portion of the payment that is to be included in 
        the income of the eligible individual for purposes of the State 
        program of aid to families with dependent children under part A 
        of title IV of the Social Security Act; and
            ``(6) the extent to which the payment represents a child 
        support arrearage of the individual from whom the amount was 
        collected; and
            ``(7) in detail, the amount of any remaining child support 
        arrearage of the individual from whom the amount was collected 
        that is payable to the family.''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on January 1, 1996.

SEC. 7. NATIONAL CHILD SUPPORT GUIDELINE COMMISSION.

    (a) Establishment.--The Secretary of Health and Human Services (in 
this section referred to as the ``Secretary'') shall establish in the 
Department of Health and Human Services a commission which shall be 
known as the ``National Child Support Guideline Commission'' (in this 
section referred to as the ``Commission'').
    (b) Duty of the Commission.--
            (1) Develop recommendations for uniform national child 
        support guidelines.--The Commission shall develop 
        recommendations for uniform national guidelines to be followed 
        in determining the amount of a child support award.
            (2) Factors to be considered.--In developing such 
        guidelines, the Commission shall take account of--
                    (A) the child care, educational, and health care 
                needs of the child;
                    (B) the income and resources of the parents of the 
                child;
                    (C) any other child support obligations of the 
                parents of the child;
                    (D) any spouse or other children of any parent of 
                the child;
                    (E) child custody arrangements, including joint 
                physical custody and split custody;
                    (F) visitation rights and needs;
                    (G) changes in the circumstances of the child and 
                of the parents of the child;
                    (H) the frequency with which the guidelines should 
                be reviewed or revised; and
                    (I) the extent (if any) to which parents should be 
                allowed to rebut the use of the guidelines.
    (c) Duties of the Secretary.--
            (1) Appointment of members.--
                    (A) In general.--The Commission shall have 10 
                members appointed by the Secretary, as follows:
                            (i) 1 member shall be an economist.
                            (ii) 1 member shall be a lawyer.
                            (iii) 1 member shall be a judge.
                            (iv) 1 member shall be a representative of 
                        a child support agency.
                            (v) 1 member shall be a representative of 
                        organizations that represent the interests of 
                        custodial parents.
                            (vi) 1 member shall be a representative of 
                        organizations that represent the interests of 
                        noncustodial parents.
                            (vii) 1 member shall be a representative of 
                        organizations that represent the interests of 
                        children.
                            (viii) 1 member shall be an individual 
                        involved in academic research into the costs of 
                        raising children and comparative living 
                        standards in households of different sizes and 
                        compositions.
                            (ix) 1 member shall be an individual 
                        involved in government research into the costs 
                        of raising children and comparative living 
                        standards in households of different sizes and 
                        compositions.
                            (x) 1 member shall be an individual 
                        involved in private research into the costs of 
                        raising children and comparative living 
                        standards in households of different sizes and 
                        compositions.
                    (B) Political affiliation.--Not more than \1/2\ of 
                the members of the Commission may be of the same 
                political party.
            (2) Compensation.--
                    (A) In general.--Except as provided in subparagraph 
                (B), members of the Commission shall be paid at a rate 
                determined by the Secretary for each day (including 
                travel time) during which they are engaged in the 
                actual performance of duties vested in the Commission.
                    (B) No compensation of federal employees.--Members 
                of the Commission who are full-time officers or 
                employees of the United States or Members of Congress 
                may not receive additional pay, allowances, or benefits 
                by reason of their service on the Commission.
                    (C) Travel expenses.--Each member of the Commission 
                shall receive travel expenses, including per diem in 
                lieu of subsistence, in accordance with sections 5702 
                and 5703 of title 5, United States Code.
            (3) Chairperson.--The Secretary shall serve as the 
        Chairperson for purposes of conducting the business of the 
        Commission, but may not vote on any matter before the 
        Commission.
            (4) Meetings.--The Commission shall meet at the call of the 
        Secretary.
            (5) Staff.--The Secretary may detail, on a reimbursable 
        basis, any of the personnel of the Department of Health and 
        Human Services to the Commission to assist the Commission in 
        carrying out the duties of the Commission under this section.
    (d) Powers.--
            (1) Hearings and sessions.--The Commission may, for the 
        purpose of carrying out this section, hold hearings, sit and 
        act at times and places, take testimony, and receive evidence 
        as the Commission considers appropriate.
            (2) Obtaining official data.--The Commission may secure 
        directly from any department or agency of the United States 
        information necessary to enable it to carry out this section. 
        Upon request of the Secretary, the head of that department or 
        agency shall furnish that information to the Commission.
            (3) Mails.--The Commission may use the United States mails 
        in the same manner and under the same conditions as other 
        departments and agencies of the United States.
            (4) Administrative support services.--Upon the request of 
        the Secretary, the Administrator of General Services shall 
        provide to the Commission, on a reimbursable basis, the 
        administrative support services necessary for the Commission to 
        carry out its duties under this section.
    (e) Report.--Not later than 1 year after the date of the enactment 
of this Act, the Secretary shall transmit to the Committee on Ways and 
Means of the House of Representatives and the Committee on Finance of 
the Senate a report that contains the recommendations of the Commission 
for national guidelines to be followed by the States in making child 
support awards, together with its recommendations for such legislation 
or administrative action as the Commission considers appropriate.
    (d) Effective Date.--This section shall take effect on the date of 
the enactment of this Act.
    (f) Termination.--The Commission shall terminate on the earlier 
of--
            (1) the date the work of the Commission is completed, as 
        determined by the Secretary; or
            (2) the date that is 1 year after the effective date of 
        this section.

SEC. 8. UNIFORM TERMINATION OF CHILD SUPPORT OBLIGATIONS.

    (a) In General.--Section 454 of the Social Security Act (42 U.S.C. 
654) is amended--
            (1) by striking ``and'' at the end of paragraph (23);
            (2) by striking the period at the end of paragraph (24) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (24) the following:
            ``(25) provide that the State shall have in effect a law 
        providing that a court order, or an order of an administrative 
        process established under State law, for support and 
        maintenance of a child, or of a child and the parent with whom 
        the child is living may not require the payment of such support 
        or maintenance with respect to--
                    ``(A) a child who has attained 18 years of age, 
                unless the parent claims an exemption for the child 
                under section 151 of the Internal Revenue Code of 1986; 
                or
                    ``(B) any child who has attained 21 years of 
                age.''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on January 1, 1995.

SEC. 9. REALLOCATION OF RESOURCES.

    (a) Staffing.--
            (1) Promulgation of methodology to be used to determine 
        state staffing needs.--Section 452(a)(2) of the Social Security 
        Act (42 U.S.C. 652(a)(1)) is amended by inserting ``, and a 
        methodology to be used to determine such requirements'' before 
        the semicolon.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall take effect on November 1, 1995.
            (3) Certain consultations required.--Before prescribing a 
        methodology to be used to determine staffing requirements under 
        section 452(a)(2) of the Social Security Act, the Secretary of 
        Health and Human Services shall consult with the heads of State 
        child support enforcement agencies, experts in the operation of 
        State child support enforcement programs.
            (4) Determination of required state staffing needs; 
        development of plan to meet requirements.--The Secretary of 
        Health and Human Services shall--
                    (A) determine the staffing requirements for each 
                State child support enforcement program, in 
                consultation with the State, by using the methodology 
                established under section 452(a)(2) of the Social 
                Security Act; and
                    (B) develop a plan that details the steps that the 
                State must take to meet such requirements by September 
                1, 1994.
    (b) Increase in Federal Financial Participation.--Section 455(a)(2) 
of the Social Security Act (42 U.S.C. 655(a)(2)) is amended--
            (1) in subparagraph (B), by striking ``and'';
            (2) in subparagraph (C), by striking ``fiscal year 1990 and 
        each fiscal year thereafter.'' and inserting ``fiscal years 
        1990, 1991, 1992, 1993, and 1994, and the first quarter of 
        fiscal year 1995; and''; and
            (3) by adding at the end the following:
            ``(D) 82.5 percent for quarters beginning after calendar 
        year 1994.''.
    (c) Maintenance of Effort.--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 total of the amount expended by 
the State from State and local sources to carry out the State plans 
under part A and this part during the quarter is less than the amount 
so expended from such sources during the corresponding quarter of the 
calendar year 1994.''.
    (d) Minimum AFDC Standard of Need.--Section 402(a) of such Act (42 
U.S.C. 602(a)) is amended--
            (1) by striking ``and'' at the end of paragraph (44);
            (2) by striking the period at the end of paragraph (45) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (45) the following:
            ``(46) provide that the State's standard of need for a 
        family shall be an amount that is not less than the greater 
        of--
                    ``(A) 90 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 same composition; 
                or
                    ``(B) the State's standard of need for the family 
                as of March 1, 1994.''.
    (e) Expanded AFDC Coverage for Needy Students.--Section 
406(a)(2)(B) of such Act (42 U.S.C. 606(a)(2)(B)) is amended by 
striking ``nineteen'' each place such term appears and inserting 
``21''.
    (f) Operation of State AFDC Plan and State Child Support 
Enforcement Plan as Requirement Under State Medicaid Plan.--Section 
1902(a) of such Act (42 U.S.C. 1396a(a)), as amended by section 
13631(a)(3) of the Omnibus Budget Reconciliation Act of 1993, is 
amended--
            (1) by striking ``and'' at the end of paragraph (61);
            (2) by striking the period at the end of paragraph (62) and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
    ``(63) provide that the State--
            ``(A) has in effect a plan approved under part D of title 
        IV and operates a child support program in substantial 
        compliance with such plan, and
            ``(B) has in effect a plan approved under part A of title 
        IV and operates a program of aid to families with dependent 
        children in substantial compliance with such plan.''.
    (g) Effective Date.--Except as provided in subsection (a), the 
amendments made by this section shall take effect on January 1, 1995.

SEC. 10. DIRECT ACCOUNTABILITY OF CHILD SUPPORT ENFORCEMENT PROGRAMS.

    (a) In General.--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'';
                            (ii) by striking ``such part'' and 
                        inserting ``this part''; and
                            (iii) by striking ``--'' and all that 
                        follows and inserting ``5 percent.'';
                    (B) in paragraph (2)(A), by striking ``reductions'' 
                and inserting ``reduction''; and
                    (C) in paragraph (3), by striking ``, section 
                402(a)(27),''; 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.
    (b) Conforming Amendment.--Section 454(1) of such Act (42 U.S.C. 
654(1)) is amended by inserting ``and carried out'' after ``in 
effect''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on January 1, 1995.

SEC. 11. SOCIAL SERVICES DEMONSTRATION PROJECTS.

    (a) Purpose.--The Secretary of Health and Human Services (in this 
section referred to as the ``Secretary'') shall authorize 5 States to 
conduct 5-year demonstration projects under which States are to give 
priority, to custodial and noncustodial parents who are unable to 
support their children financially, in the provision of services under 
the job opportunities and basic skills training program under part F of 
title IV of the Social Security Act and under the Job Training 
Partnership Act, and in the provision of other Federal job training, 
education, and child care services, in order to aid such parents to 
better provide for themselves and their children.
    (b) Duties of the Secretary.--
            (1) Consideration of applications.--The Secretary shall 
        consider all applications received from States desiring to 
        conduct demonstration projects under this section.
            (2) Approval of applications.--
                    (A) Number.--The Secretary shall approve not more 
                than 5 applications to conduct demonstration projects 
                under this section.
                    (B) Priority.--In approving such applications, the 
                Secretary shall give priority to States that are 
                conducting programs similar to those that would be 
                conducted under this section.
            (3) Grants.--The Secretary shall make a grant in the amount 
        of $2,000,000, in a lump sum, to each State whose application 
        to conduct a demonstration project under this section is 
        approved by the Secretary, to assist the State in carrying out 
        the project.
            (4) Timing of grants.--The Secretary shall make all grants 
        under this section at the same time.
    (c) Requirements.--
            (1) Prescribed by the secretary.--Each State that receives 
        a grant for a demonstration project under this section shall 
        conduct the project in accordance with such requirements as the 
        Secretary may prescribe.
            (2) Evaluations and reports.--
                    (A) In general.--
                            (i) Interim evaluation and report.--Each 
                        State that conducts a demonstration project 
                        under this section shall conduct an interim 
                        evaluation of the effectiveness of the project 
                        after the project has been conducted for 30 
                        months, and shall submit to the Secretary an 
                        interim report that contains--
                                    (I) information on the number of 
                                parents involved in particular programs 
                                under the project;
                                    (II) information on the average 
                                length of time between the enrollment 
                                of a parent and the employment of the 
                                parent; and
                                    (III) a description of any 
                                relationship found to exist between 
                                social service programs and the payment 
                                of child support.
                            (ii) Final evaluation and report.--Each 
                        State that conducts a demonstration project 
                        under this section shall conduct a final 
                        evaluation of the effectiveness of the project 
                        at the end of the project, and shall submit to 
                        the Secretary a final report that contains--
                                    (I) information on the number of 
                                parents involved in particular programs 
                                under the project;
                                    (II) information on the average 
                                length of time between the enrollment 
                                of a parent and the employment of the 
                                parent; and
                                    (III) a description of any 
                                relationship found to exist between 
                                social service programs and the payment 
                                of child support.
                    (B) Contents.--The evaluations and reports required 
                by subparagraph (A) with respect to a demonstration 
                project shall analyze and describe (in a manner 
                prescribed by the Secretary)--
                            (i) the impact of the project on the 
                        economic and noneconomic well-being of children 
                        and adults in custodial and noncustodial 
                        households;
                            (ii) the rates at which custodial and 
                        noncustodial parents increase participation in 
                        the workforce as a result of the project;
                            (iii) the impact of the project on 
                        participation rates in, amounts of aid provided 
                        under, and overall level of funding for, the 
                        program of aid to families with dependent 
                        children under part A of title IV of the Social 
                        Security Act; and
                            (iv) the impact on custodial and 
                        noncustodial parents of access to education and 
                        job training services under the project.
    (d) Reports to the Congress.--
            (1) Interim report.--After receiving and analyzing the 
        interim reports required by subsection (c)(2)(A)(i) and 
        analyzing such reports, the Secretary shall submit to the 
        Committee on Ways and Means and the Committee on Education and 
        Labor of the House of Representatives, and to the Committee on 
        Finance and the Committee on Labor and Human Resources of the 
        Senate, a report that contains--
                    (A) the results of the evaluations described in the 
                interim reports; and
                    (B) a description of any improvements in child 
                support enforcement resulting from the conduct of 
                demonstration projects under this section.
            (2) Comparative evaluation.--
                    (A) In general.--The Secretary shall submit to the 
                Committee on Ways and Means and the Committee on 
                Education and Labor of the House of Representatives, 
                and to the Committee on Finance and the Committee on 
                Labor and Human Resources of the Senate, a report 
                that--
                            (i) contains a comparative evaluation of 
                        the demonstration projects conducted under this 
                        section;
                            (ii) identifies which of such projects, or 
                        aspects of such projects, best contributed to 
                        the achievement of the purpose of this section; 
                        and
                            (iii) makes such recommendations for 
                        legislative and administrative action as the 
                        Secretary deems appropriate.
                    (B) Timing of reports.--The Secretary shall submit 
                the evaluation required under subparagraph (A) with 
                respect to a demonstration project after the project 
                has been carried out for 5 years.

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