[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 2528 Introduced in Senate (IS)]

103d CONGRESS
  2d Session
                                S. 2528

     To improve and strengthen the child support collection system.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

            October 6 (legislative day, September 12), 1994

 Mrs. Feinstein (for herself, Mr. Sasser, and Mr. Pell) introduced the 
 following bill; which was read twice and referred to the Committee on 
                                Finance

_______________________________________________________________________

                                 A BILL


 
     To improve and strengthen the child support collection system.

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

SECTION 1. SHORT TITLE; REFERENCE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Child Support 
Responsibility Act of 1994''.
    (b) Reference to Social Security Act.--Except as otherwise 
specifically provided, wherever in this Act an amendment is expressed 
in terms of an amendment to or repeal of a section or other provision, 
the reference shall be considered to be made to that section or other 
provision of the Social Security Act.
    (c) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; reference; table of contents.
                   TITLE I--LOCATE AND CASE TRACKING

Sec. 101. Federal child support order registry.
Sec. 102. Expansion of Federal parent locator systems.
Sec. 103. National reporting of employees and child support 
                            information.
Sec. 104. State role.
Sec. 105. Reconciliation of child support obligation and payments on 
                            income tax return.
                        TITLE II--ESTABLISHMENT

Sec. 201. Service of process on Federal employees and members of the 
                            armed services in connection with 
                            proceedings relating to child support and 
                            parentage obligations.
Sec. 202. Presumed address of obligor and obligee.
Sec. 203. Fair Credit Reporting Act amendment.
Sec. 204. National child support guideline commission.
Sec. 205. Duration of support.
Sec. 206. Evidence.
Sec. 207. Telephonic appearance in interstate cases.
Sec. 208. Uniform terms in orders.
Sec. 209. Social security numbers on marriage licenses, divorce 
                            decrees, parentage decrees, and birth 
                            certificates.
Sec. 210. Administrative subpoena power.
Sec. 211. Support orders outreach and demonstrations.
Sec. 212. Health care support.
Sec. 213. Rules governing modification of child support orders.
                          TITLE III--PARENTAGE

Sec. 301. Paternity establishment procedures.
                         TITLE IV--ENFORCEMENT

Sec. 401. Direct wage withholding.
Sec. 402. Priorities in application of withheld wages.
Sec. 403. Additional benefits subject to garnishment.
Sec. 404. Consumer Credit Protection Act amendments.
Sec. 405. Prohibition against use of election of remedies doctrine to 
                            prevent collection of child support.
Sec. 406. Hold on occupational, professional, and business licenses.
Sec. 407. Driver's licenses and vehicle registrations denied to persons 
                            failing to appear in child support cases.
Sec. 408. Liens on certificates of vehicle title.
Sec. 409. Attachment of bank accounts.
Sec. 410. Seizure of lottery winnings, settlements, payouts, awards, 
                            and bequests, and sale of forfeited 
                            property, to pay child support arrearages.
Sec. 411. Fraudulent transfer pursuit.
Sec. 412. Full IRS collection.
Sec. 413. Tax refund offset program expanded to cover non-AFDC post-
                            minor children.
Sec. 414. Attachment of public and private retirement funds.
Sec. 415. Reporting of child support arrearages to credit bureaus.
Sec. 416. Elimination of statutes of limitations in child support 
                            cases.
Sec. 417. Interest.
Sec. 418. Bankruptcy.
Sec. 419. Federal government cooperation in enforcement of support 
                            obligations of members and former members 
                            of the Armed Forces.
Sec. 420. States required to enact the Uniform Interstate Family 
                            Support Act.
Sec. 421. Denial of passports to noncustodial parents subject to State 
                            arrest warrants in cases of nonpayment of 
                            child support.
Sec. 422. Denial of Federal benefits, loans, guarantees, and employment 
                            to certain persons with large child support 
                            arrearages.
Sec. 423. States required to order courts to allow assignment of life 
                            insurance benefits to satisfy child support 
                            arrearages.
Sec. 424. Interests in jointly held property subject to assignment to 
                            satisfy child support arrearages.
Sec. 425. International child support enforcement.
Sec. 426. Nonliability for depository institutions providing financial 
                            records to State child support enforcement 
                            agencies in child support cases.
Sec. 427. Cost-of-living adjustment of child support awards.
Sec. 428. Annual exchange of financial information by parties to child 
                            support order.
Sec. 429. Criminal penalties for failure to pay child support.
                  TITLE V--COLLECTION AND DISTRIBUTION

Sec. 501. Priorities in distribution of collected child support.
Sec. 502. State claims against noncustodial parent limited to 
                            assistance provided to the child.
Sec. 503. Fees for non-AFDC clients.
Sec. 504. Collection and disbursement points for child support.
                         TITLE VI--FEDERAL ROLE

Sec. 601. Placement and role of the Office of Child Support 
                            Enforcement.
Sec. 602. Training.
Sec. 603. Staffing.
Sec. 604. Child support definition.
Sec. 605. Technical correction to ERISA definition of medical child 
                            support order.
Sec. 606. Audits.
Sec. 607. Establishment of child support assurance demonstration 
                            projects.
Sec. 608. Children's Trust Fund.
Sec. 609. Study of reasons for nonpayment of child support; report.
Sec. 610. Study of effectiveness of administrative processes; report.
Sec. 611. Compendium of State child support statutes.
Sec. 612. Establishment of permanent child support advisory committee.
                         TITLE VII--STATE ROLE

Sec. 701. Advocation of children's economic security.
Sec. 702. Duties of State child support agencies.
Sec. 704. Administrative process for change of payee in IV-D cases.
Sec. 705. Financial incentives.
Sec. 706. Avoidance of conflicts of interest.

                   TITLE I--LOCATE AND CASE TRACKING

SEC. 101. FEDERAL CHILD SUPPORT ORDER REGISTRY.

    (a) Establishment.--Not later than October 1, 1995, the Secretary 
shall establish a Federal registry of child support orders issued or 
modified by any State court or administrative process established under 
State law.
    (b) Comparison of Information on W-4 Forms With Information in 
Child Support Orders.--Within 10 days after the registry established 
under subsection (a) receives a W-4 form of an employee, the registry 
shall--
            (1) compare the information on the form with the 
        information in the registry on the child support obligations of 
        the employee; and
            (2) transmit to the registry established under section 
        466(a)(12) of the State in which the employee is employed a 
        notice as to whether the amount specified on the W-4 form as 
        the monthly child support obligation of the employee is 
        accurate or not.
    (c) Regulations.--The Secretary shall prescribe such regulations as 
may be necessary to carry out this section, especially in cases 
involving an employee who has 2 or more employers or child support 
obligations.
    (d) State Access to the Registry.--The Secretary shall, upon 
request of any State, provide the State with access to the information 
contained in the registry established under subsection (a).
    (e) Definitions.--As used in this section:
            (1) Child support order.--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 (including an order requiring health insurance to be 
        provided to such a child or parent).
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Health and Human Services.
            (3) State.--The term ``State'' includes the several States, 
        the District of Columbia, the Commonwealth of Puerto Rico, the 
        Commonwealth of the Northern Mariana Islands, the United States 
        Virgin Islands, Guam, American Samoa, and the Trust Territory 
        of the Pacific Islands.

SEC. 102. EXPANSION OF FEDERAL PARENT LOCATOR SYSTEMS.

    (a) Expansion of Functions.--Section 453(a) (42 U.S.C. 653(a)) is 
amended by striking ``enforcing support obligations against such 
parent'' and inserting ``establishing parentage, establishing, 
modifying, and enforcing child support obligations''.
    (b) Access to Additional Data Bases.--Section 453 (42 U.S.C. 653) 
is amended--
            (1) in subsection (b), by striking ``the most recent 
        address and place of employment'' and inserting ``the most 
        recent residential address, employer name and address, and 
        amounts and nature of income and assets'';
            (2) in subsection (c)(3), by striking ``resident'' and 
        inserting ``custodial''; and
            (3) in subsection (e), by adding at the end the following:
    ``(4) The Secretary of the Treasury shall enter into an agreement 
with the Secretary to provide prompt access by the Secretary (in 
accordance with this subsection and section 6103(l)(6) of the Internal 
Revenue Code of 1986) to all Federal income tax returns filed by 
individuals with the Internal Revenue Service.''.
    (c) Expansion of Access to the National Parent Locator Network.--
Section 453 (42 U.S.C. 653) is amended by adding at the end the 
following:
    ``(g) The Secretary shall expand the Parent Locator Service to 
establish a national network based on the comprehensive statewide child 
support enforcement systems developed by the States, to--
            ``(1) allow each State to--
                    ``(A) locate any absent parent who owes child 
                support or for whom a child support obligation is being 
                established, by--
                            ``(i) to the extent practicable, accessing 
                        the records of other State agencies and sources 
                        of locate information directly from one 
                        computer system to another; and
                            ``(ii) accessing Federal sources of locate 
                        information in the same fashion;
                    ``(B) access the files of other States to determine 
                whether there are other child support orders and obtain 
                the details of those orders;
                    ``(C) provide for both on-line and batch processing 
                of locate requests, with on-line access restricted to 
                cases in which the information is needed immediately 
                (for such reasons as court appearances) and batch 
                processing used to `troll' data bases to locate 
                individuals or update information periodically; and
                    ``(D) direct locate requests to individual States 
                or Federal agencies, broadcast requests to selected 
                States, or broadcast cases to all States when there is 
                no indication of the source of needed information;
            ``(2) provide for a maximum of 48-hour turnaround time for 
        information to be broadcast and returned to a requesting State;
            ``(3) provide ready access to courts and administrative 
        agencies of the information on the network by location of a 
        computer terminal in each court; and
            ``(4) access the registries of child support orders 
        maintained by States pursuant to section 466(a)(12).''.

SEC. 103. NATIONAL REPORTING OF EMPLOYEES AND CHILD SUPPORT 
              INFORMATION.

    (a) In General.--Not later than Janauary 1, 1995, the Secretary of 
the Treasury, in consultation with the Secretary of Labor, shall 
establish a system of reporting of employees by requiring employers to 
provide a copy of every employee's W-4 form to the Federal child 
support order registry established pursuant to section 101(a) of the 
Child Support Responsibility Act of 1994 and to the child support order 
registry established pursuant to section 466(a)(12) of the Social 
Security Act by the State in which the employment is located--
            (1) in the case of employees hired on or after the 
        effective date of this section, on the date the employee is 
        hired; or
            (2) in the case of employees hired before such effective 
        date, within 10 days after such effective date.
    (b) Inclusion of Child Support Information on W-4 Forms.--The 
Secretary of the Treasury shall modify the W-4 form to enable the 
employee to indicate on the form--
                    (A) whether the employee owes child support, and if 
                so--
                            (i) to whom the support is payable and the 
                        amount of the support payable; and
                            (ii) whether the support is to be paid 
                        through wage withholding; and
                    (B) whether health care insurance is available to 
                the new employee, and, if so, whether the employee has 
                obtained such insurance for the dependent children of 
                the employee.

SEC. 104. STATE ROLE.

    (a) State Child Support Order Registries.--Section 466(a) (42 
U.S.C. 666(a)) is amended by inserting after paragraph (11) the 
following:
            ``(12) Procedures under which the--
                    ``(A) State child support enforcement agency 
                shall--
                            ``(i) establish and maintain a child 
                        support order registry which shall include--
                                    ``(I) a copy of each child support 
                                order issued or modified in the State 
                                on or after the effective date of this 
                                paragraph;
                                    ``(II) a copy of each child support 
                                order issued or modified in the State 
                                before the effective date of this 
                                paragraph that is being enforced under 
                                the State plan; and
                                    ``(III) a copy of each child 
                                support order issued or modified in the 
                                State before the enactment of this 
                                paragraph that a party to the order has 
                                requested be included in the Federal 
                                child support order registry 
                                established pursuant to section 101(a) 
                                of the Child Support Responsibility Act 
                                of 1994;
                            ``(ii)(I) immediately upon receipt of a 
                        child support order referred to in subclause 
                        (I) or (II) of clause (i), transmit an abstract 
                        of the order to the Federal registry; and
                            ``(II) beginning 2 years after such date of 
                        enactment, transmit to the Federal registry an 
                        abstract of each child support order referred 
                        to in clause (i)(III); and
                            ``(iii) distribute in accordance with 
                        section 457(b) all amounts received from 
                        employers that have been deducted and withheld 
                        from the wages of employees for the payment of 
                        child support obligations, and all amounts 
                        received from the Internal Revenue Service 
                        pursuant to section 7524(f) of the Internal 
                        Revenue Code of 1986, within 3 days after 
                        receipt;
                    ``(B) allow any individual owed support pursuant to 
                a child support order issued or modified in the State 
                who alleges that an employer has failed to comply with 
                subsection (b)(11)(B)(ii) with respect to the order, or 
                that a State official has failed to comply with 
                subparagraph (A)(iii) of this paragraph with respect to 
                amounts withheld from wages pursuant to the order and 
                paid to the State, to bring an action against the 
                employer or the official (in the official's personal 
                capacity), as the case may be, in any State court and 
                recover damages, including interest; and
                    ``(C) the State agency referred to in section 
                402(a)(3) shall notify the State child support 
                enforcement agency of the commencement or termination 
                of aid under the State plan approved under part A to 
                any individual or family, within 10 days after such 
                commencement or termination.''.
    (b) Direct Wage Withholding.--Section 466(b) (42 U.S.C. 666(b)) is 
amended by adding at the end the following:
            ``(11)(A)(i) Upon the issuance or modification by a State 
        court or administrative agency of an order imposing a child 
        support obligation on an individual, the State shall transmit 
        to any employer of the individual a wage withholding order 
        developed under section 452(a)(12) directing the employer to 
        withhold amounts from the wages of the individual pursuant to 
        the order, or such greater amount as the State child support 
        order registry established pursuant to subsection (a)(12)(A) of 
        this section may determine is the total amount of the child 
        support obligations of the individual.
            ``(ii) Clause (i) shall not apply to an order upon 
        agreement of the parties to the order and the court or 
        administrative agency that issued or modified the order.
            ``(iii) An agreement referred to in clause (ii) may be 
        unilaterally rescinded only by the individual to whom child 
        support is payable under the order.
            ``(B) Any individual or entity engaged in commerce, as a 
        condition of doing business in the State, shall, on receipt of 
        a wage withholding order developed under section 452(a)(12) 
        that is regular on its face and has been issued by a court of 
        any State--
                    ``(i) comply with the order by forwarding to the 
                State registry established pursuant to subsection 
                (a)(12)(A) of this section, within 5 days after the end 
                of each payroll period ending after receipt of the 
                order, the greater of--
                            ``(I) the amount required to be withheld 
                        pursuant to the order; or
                            ``(II) the amount that the State registry 
                        has notified the employer is the amount 
                        required to be withheld from the wages of the 
                        employee for payment of child support 
                        obligations of the employee; and
                    ``(ii) keep records of the amounts so withheld.
            ``(C) Such an order may be served on the income source 
        directly or by first-class mail.
            ``(D) An individual or entity who complies with 
        subparagraph (B)(i) with respect to such an order may not be 
        held liable for wrongful withholding of income from the 
        employee subject to the order.
            ``(E) The State shall impose a civil fine of $1,000 on any 
        individual or entity who receives such an order for each 
        failure to comply with subparagraph (B)(i) with respect to the 
        order.
            ``(F) The State shall have in effect procedures for 
        carrying out this paragraph in cases involving an employee who 
        has 2 or more employers or child support obligations.
            ``(12) If the State transmits to an individual or entity 
        engaged in commerce only outside the State a wage withholding 
        order issued by the State with respect to an employee of the 
        individual or entity, and the individual or entity contests or 
        refuses to comply with the order, the State shall send an 
        informational copy of the order to the registry established 
        under subsection (a)(12)(A) of any other State in which the 
        individual or entity is engaged in commerce.
            ``(13) If an employee requests a hearing to contest wage 
        withholding based on claim of a mistake of fact, the hearing 
        may be held in the State from which the income is paid or in 
        which the employee is employed, and, within 45 days after the 
        income source receives the withholding order, the entity 
        conducting the hearing must adjudicate the claim. The State in 
        which the hearing is held shall provide appropriate services in 
        cases enforced under the State plan to ensure that the 
        interests of the individual to whom the withheld income is to 
        be paid are adequately represented.''.
    (c) Priorities in Application of Withheld Wages.--Section 466(b) 
(42 U.S.C. 666(b)), as amended by subsection (b) of this section, is 
amended by inserting after paragraph (13) the following:
            ``(14) Procedures under which the amounts withheld pursuant 
        to a child support or wage withholding order are to be applied 
        in the following order:
                    ``(A) To payments of support due during the month 
                of withholding.
                    ``(B) To payments of premiums for health care 
                insurance coverage for dependent children.
                    ``(C) To payments of support due before the month 
                of withholding, and of unreimbursed health-care 
                expenses.''.
    (d) Access to Various Data Bases.--Section 466(a) (42 U.S.C. 
666(a)), as amended by subsection (a) of this section, is amended by 
inserting after paragraph (12) the following:
            ``(13) Procedures under which the State child support 
        enforcement agency shall have automated on-line or batch access 
        (or, if necessary, nonautomated access) to information 
        regarding residential addresses, employers and employer 
        addresses, income and assets, and medical insurance benefits 
        with respect to absent parents that is available through any 
        data base maintained by--
                    ``(A) any agency of the State or any political 
                subdivision thereof, that contains information on 
                residential addresses, or on employers and employer 
                addresses, as the State deems appropriate;
                    ``(B) any publicly regulated utility company 
                located in the State; and
                    ``(C) any credit reporting agency located in the 
                State.''.
    (e) Expanded Interaction With the National Parent Locator 
Network.--Section 454(16) (42 U.S.C. 654(16)) is amended--
            (1) by striking ``and (E)'' and inserting ``(E)''; and
            (2) by striking ``enforcement;'' and inserting 
        ``enforcement, and (F) to provide access to the national 
        network developed pursuant to section 453(g);''.

SEC. 105. RECONCILIATION OF CHILD SUPPORT OBLIGATION AND PAYMENTS ON 
              INCOME TAX RETURN.

    (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. RECONCILIATION OF CHILD SUPPORT OBLIGATION AND PAYMENTS ON 
              INCOME TAX RETURN.

    ``(a) In General.--Each applicable child support obligation of any 
individual for months ending with or within any taxable year shall be 
paid--
            ``(1) 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
            ``(2)(A) if such return is filed not later than such date, 
        with such return, or
            ``(B) in any case not described in subparagraph (A), in 
        such manner as the Secretary may by regulations prescribe.
    ``(b) Offset for Withheld Child Support, Etc.--There shall be 
allowed as a credit against the amount required to be paid under 
subsection (a) by an individual the sum of--
            ``(1) the amount (if any) deducted and withheld pursuant to 
        State law from the wages received by such individual during the 
        taxable year,
            ``(2) the amount (if any) paid by such individual under 
        section 6654 by reason of subsection (f)(3) thereof for such 
        taxable year, and
            ``(3) the amount paid 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).
    ``(c) 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--
            ``(1) the aggregate of the amounts described in paragraphs 
        (1), (2), and (3) of subsection (a) for such taxable year, over
            ``(2) the aggregate of the child support obligations 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.
    ``(d) Failure To Pay Amount Owing.--If an individual fails to pay 
the full amount required to be paid under subsection (a) 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) 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).
    ``(f) Amounts Collected by Secretary Paid to State Registries.--
Amounts collected under this section and section 6654 by reason of an 
applicable child support obligation shall be paid by the Secretary to 
the appropriate State registry established pursuant to section 
466(a)(12)(A)(i) of the Social Security Act.''.
    (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 of child support obligations 
        withheld pursuant to State law.''.
    (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 State law 
                for applicable child support obligations, and
                    ``(B) amounts paid by the 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),
        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. Reconciliation of child 
                                        support obligation and payments 
                                        on income tax return.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1995.

                        TITLE II--ESTABLISHMENT

SEC. 201. SERVICE OF PROCESS ON FEDERAL EMPLOYEES AND MEMBERS OF THE 
              ARMED SERVICES IN CONNECTION WITH PROCEEDINGS RELATING TO 
              CHILD SUPPORT AND PARENTAGE OBLIGATIONS.

    Part D of title IV (42 U.S.C. 651-670) is amended by inserting 
after section 460 the following:

``SEC. 460A. SERVICE OF PROCESS ON FEDERAL EMPLOYEES AND MEMBERS OF THE 
              ARMED SERVICES IN CONNECTION WITH PROCEEDINGS RELATING TO 
              CHILD SUPPORT AND PARENTAGE OBLIGATIONS.

    ``(a) In General.--The head of each Government agency shall, in 
accordance with applicable regulations under subsection (b), designate 
an agent for receipt of service of process, for any Federal employee or 
member of the Armed Forces serving in or under such agency, in 
connection with an action, brought in a court of competent jurisdiction 
within any State, territory, or possession of the United States, for 
obtaining a child support order or for establishing parentage.
    ``(b) Regulations.--Regulations governing the implementation of 
this section with respect to the executive, legislative, or judicial 
branch of the Government shall be promulgated by the authority or 
authorities responsible for promulgating regulations under section 461 
with respect to the branch of Government involved.
    ``(c) Interpretive Rule.--This section shall not be construed to 
prevent any otherwise eligible individual from requesting or being 
granted a stay or continuance in any judicial proceeding, including 
under the Soldiers' and Sailors' Civil Relief Act of 1940.
    ``(d) Government Agency Defined.--For purposes of this section, the 
term `Government agency' means each agency of the Federal Government, 
including--
            ``(1) an Executive agency (as defined by section 105 of 
        title 5, United States Code);
            ``(2) the Department of Defense, to the extent that any 
        Federal employee serving in or under that agency or any member 
        of the armed services is involved;
            ``(3) the United States Postal Service and the Postal Rate 
        Commission;
            ``(4) the government of the District of Columbia;
            ``(5) an agency within the legislative or judicial branch 
        of the Government; and
            ``(6) an advisory committee to which the Federal Advisory 
        Committee Act applies.''.

SEC. 202. PRESUMED ADDRESS OF OBLIGOR AND OBLIGEE.

    Section 466(a) (42 U.S.C. 666(a)), as amended by section 104 of 
this Act, is amended by inserting after paragraph (13) the following:
            ``(14) Procedures under which the State shall--
                    ``(A) require the court or administrative agency 
                with authority to issue the final order in a child 
                support or parentage case to require each party subject 
                to the order to file with the court or administrative 
                agency, on or before the date the order is issued--
                            ``(i) the party's residential address or 
                        addresses;
                            ``(ii) the party's mailing address or 
                        addresses;
                            ``(iii) the party's home telephone number 
                        or numbers;
                            ``(iv) the party's driver's license number;
                            ``(v) the party's social security account 
                        number;
                            ``(vi) the name of each employer of the 
                        party;
                            ``(vii) the addresses of each place of 
                        employment of the party; and
                            ``(viii) the party's work telephone number 
                        or numbers;
                    ``(B) require the court or administrative agency in 
                any action related to child support to presume, for the 
                purpose of providing sufficient notice (other than the 
                initial notice in an action to establish parentage or a 
                child support order), that the noncustodial parent 
                resides at the last residential address given by the 
                noncustodial parent to the court or agency; and
                    ``(C) ensure that information concerning the 
                location of a custodial parent or a child of the 
                custodial parent is not released to a noncustodial 
                parent if a court order has been issued against the 
                noncustodial parent for the physical protection of the 
                custodial parent or the child.''.

SEC. 203. FAIR CREDIT REPORTING ACT AMENDMENT.

    Section 604 of the Consumer Credit Protection Act (15 U.S.C. 1681b) 
is amended by adding at the end the following:
    ``(4) To a State agency administering a State plan under section 
454 of the Social Security Act, for use to establish or modify a child 
support award.''.

SEC. 204. NATIONAL CHILD SUPPORT GUIDELINE COMMISSION.

    (a) Establishment.--There is hereby established a commission to be 
known as the National Child Support Guidelines Commission (in this 
section referred to as the ``Commission'').
    (b) General Duties.--The Commission shall convene a conference to 
study the desirability of a national child support guideline, and if 
such guideline is advisable, the Commission shall develop for 
congressional consideration a national child support guideline that is 
based on the conference's study of various guideline models, the 
deficiencies of such models and any needed improvements.
    (c) Membership.--
            (1) Number; appointment.--
                    (A) In general.--The Commission shall be composed 
                of 9 individuals appointed jointly by the Secretary of 
                Health and Human Services and the Congress, not later 
                than January 15, 1995.
                    (B) Qualifications of members.--Members of the 
                Commission shall be appointed from among those who are 
                able to provide expertise and experience in the 
                evaluation and development of child support guidelines. 
                At least 2 of the members shall represent parent child 
                support advocacy groups.
            (2) Terms of office.--Each member shall be appointed for a 
        term of 1 year. A vacancy in the Commission shall be filled in 
        the manner in which the original appointment was made.
    (d) Commission Powers, Compensation, Access to Information, and 
Supervision.--The first sentence of subparagraph (C), the first and 
third sentences of subparagraph (D), subparagraph (F) (except with 
respect to the conduct of medical studies), clauses (ii) and (iii) of 
subparagraph (G), and subparagraph (H) of section 1886(e)(6) of the 
Social Security Act shall apply to the Commission in the same manner in 
which such provisions apply to the Prospective Payment Assessment 
Commission.
    (e) Report.--Not later than 1 year after the appointment of 
members, the Commission shall report to the President and the Congress 
on the results of the study described in subsection (b) and the final 
assessment by the Commission of issues relating to a national child 
support guideline.
    (f) Termination.--The Commission shall terminate upon the 
submission of the report described in subsection (e).

SEC. 205. DURATION OF SUPPORT.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 104 and 
202 of this Act, is amended by inserting after paragraph (14) the 
following:
            ``(15) Procedures under which the State--
                    ``(A) imposes on 1 or both parents of a child an 
                obligation to continue to provide support for the child 
                until not earlier than the later of the date the child 
                attains 18 years of age or the date the child is 
                graduated from or is no longer enrolled in secondary 
                school or its equivalent, unless the child is married 
                or is otherwise emancipated by a court of competent 
                jurisdiction or by operation of State law;
                    ``(B) provides that courts with jurisdiction over 
                child support cases may, in accordance with criteria 
                established by the State, order--
                            ``(i) child support, payable to an adult 
                        child, at least up to the age of 22 years for a 
                        child enrolled in an accredited postsecondary 
                        or vocational school or college who is a 
                        student in good standing; and
                            ``(ii) either or both parents to pay for 
                        postsecondary school support based on each 
                        parent's financial ability to pay; and
                    ``(C) provides for child support to continue beyond 
                the child's minority if the child is disabled, unable 
                to be self-supportive, and the disability arose during 
                the child's minority.''.

SEC. 206. EVIDENCE.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 104 and 
205 of this Act, is amended by inserting after paragraph (15) the 
following:
            ``(16) Procedures under which--
                    ``(A) a certified copy of an out-of-State order, 
                decree, or judgment related to child support or 
                parentage shall be admitted once offered in the courts 
                of the State if the order, decree, or judgment is 
                regular on its face; and
                    ``(B) electronically transmitted information and 
                documents faxed to a court or administrative agency 
                that contain information related to the amount of a 
                child support obligation and the terms of the order 
                imposing the obligation may be offered as evidence of 
                the amount and the terms, and electronically 
                transmitted records of payment of a child support 
                agency that are regular on their face shall be 
                admissible as evidence in a child support or parentage 
                proceeding to prove the truth of the matter asserted in 
                the records.''.

SEC. 207. TELEPHONIC APPEARANCE IN INTERSTATE CASES.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 104, 205, 
and 206 of this Act, is amended by inserting after paragraph (16) the 
following:
            ``(17) Procedures under which the parties to an interstate 
        parentage or child support administrative or judicial 
        proceeding may appear and participate by telephonic means in 
        lieu of appearing personally.''.

SEC. 208. UNIFORM TERMS IN ORDERS.

    (a) In General.--Section 452(a) (42 U.S.C. 652(a)) is amended--
            (1) by striking ``and'' at the end of paragraph (9);
            (2) by striking the period at the end of the 2nd sentence 
        of paragraph (10) and inserting ``; and''; and
            (3) by adding at the end the following:
            ``(11) not later than 12 months after the date of the 
        enactment of this paragraph, develop, in conjunction with State 
        executive and judicial organizations, a uniform abstract of a 
        child support order, for use by all State courts to record, 
        with respect to each child support order in the child support 
        order registry established under section 466(a)(12)--
                    ``(A) the date support payments are to begin under 
                the order;
                    ``(B) the circumstances upon which support payments 
                are to end under the order;
                    ``(C) the amount of child support payable pursuant 
                to the order expressed as a sum certain to be paid on a 
                monthly basis, arrearages expressed as a sum certain as 
                of a certain date, and any payback schedule for the 
                arrearages;
                    ``(D) whether the order awards support in a lump 
                sum (nonallocated) or per child;
                    ``(E) if the award is in a lump sum, the event 
                causing a change in the support award and the amount of 
                any change;
                    ``(F) other expenses covered by the order;
                    ``(G) the names of the parents subject to the 
                order;
                    ``(H) the social security account numbers of the 
                parents;
                    ``(I) the name, date of birth, and social security 
                account number (if any) of each child covered by the 
                order;
                    ``(J) the identification (FIPS code, name, and 
                address) of the court that issued the order;
                    ``(K) any information on health care support 
                required by the order; and
                    ``(L) the party to contact if additional 
                information is obtained.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on the date of the enactment of this Act.

SEC. 209. SOCIAL SECURITY NUMBERS ON MARRIAGE LICENSES, DIVORCE 
              DECREES, PARENTAGE DECREES, AND BIRTH CERTIFICATES.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 104, 205, 
206, and 207 of this Act, is amended by inserting after paragraph (17) 
the following:
            ``(18) Procedures under which the social security account 
        number (if any) of--
                    ``(A) each individual applying for a marriage 
                license is to be listed by the individual's name on the 
                license;
                    ``(B) each party granted a divorce decree is to be 
                listed by the party's name on the decree, if any party 
                to the decree is pregnant or a parent;
                    ``(C) each individual determined to be a parent of 
                a child in an action to establish parentage is to be 
                listed by the individual's name on the decree 
                containing the determination; and
                    ``(D) each parent of a child is to be listed by the 
                parent's name on the child's birth certificate, except 
                that, if the State agency determines (in accordance 
                with standards prescribed by the Secretary which shall 
                take into consideration the best interests of the 
                child) that there is good cause for not so listing the 
                social security account number of a parent.''.

SEC. 210. ADMINISTRATIVE SUBPOENA POWER.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 104, 205, 
206, 207, and 209 of this Act, is amended by inserting after paragraph 
(18) the following:
            ``(19) Procedures under which the State child support 
        enforcement agency may issue a subpoena which--
                    ``(A) requires the individual served to produce and 
                deliver documents to, or to appear at, a court or 
                administrative agency on a certain date; and
                    ``(B) penalizes an individual for failing to comply 
                with the subpoena.''.

SEC. 211. SUPPORT ORDERS OUTREACH AND DEMONSTRATIONS.

    (a) States Required To Conduct Surveys of Underserved 
Populations.--
            (1) In general.--Part D of title IV (42 U.S.C. 651-669) is 
        amended by adding at the end the following:

``SEC. 470. STATE SURVEYS OF UNDERSERVED POPULATIONS.

    ``Each State, as a condition for having a State plan approved under 
this part, must conduct surveys to identify populations underserved by 
child support services, and develop outreach programs to serve such 
populations in places such as child care centers, parenting classes, 
prenatal classes, and unemployment offices.''.
            (2) Federal financial participation.--Section 455(a)(1) (42 
        U.S.C. 655(a)(1)) is amended--
                    (A) in subparagraph (B), by striking ``and'' at the 
                end;
                    (B) in subparagraph (C) by adding ``and'' at the 
                end; and
                    (C) by inserting after subparagraph (C) the 
                following:
            ``(D) equal to 90 percent of so much of the sums expended 
        during such quarter as are attributable to operating programs 
        described in section 470,''.
    (b) Materials To Assist Persons With Low Literacy Levels.--The 
Secretary of Health and Human Services shall fund demonstration 
projects and technical assistance grants to States to develop 
applications and informational materials directed to individuals with 
low literacy levels or difficulties reading English.
    (c) Review of Written Materials.--The Secretary of Health and Human 
Services shall review all written materials provided to persons served 
by the Office of Child Support Enforcement to ensure that any 
requirement contained in the materials is presented clearly and in a 
manner that is easily understandable by such persons.
    (d) Demonstration Projects To Improve Coordination Between Certain 
State Public Assistance Agencies.--The Secretary of Health and Human 
Services shall make grants to States to conduct demonstration projects 
to test various methods for improving the coordination of services and 
case processing between the State agency referred to in section 
402(a)(3) of the Social Security Act and the State agency referred to 
in section 454(3) of such Act.
    (e) Referral of Custodial Parents to Community Resources To Combat 
Domestic Violence.--Section 454 (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 agency administering the plan must 
        refer to appropriate community resources custodial parents 
        against whom or whose children violence has been threatened as 
        a result of cooperation with a State agency in establishing or 
        enforcing a child support order, in accordance with procedures 
        developed by the State to reduce the risk of violence, such as 
        exempting the custodial parent from any requirement of face-to-
        face meetings with persons other than from the agency.''.

SEC. 212. HEALTH CARE SUPPORT.

    (a) Inclusion in Child Support Orders.--
            (1) State guidelines.--Section 467 (42 U.S.C. 667) is 
        amended by adding at the end the following:
    ``(d)(1) Not later than the beginning of the 9th calendar month 
that begins after the date the Secretary prescribes final regulations 
in accordance with paragraph (2), each State, as a condition for having 
its State plan approved under this part, must establish guidelines for 
the coverage of the health care costs of children pursuant to child 
support orders issued or modified in the State, which guidelines shall 
create a streamlined process that meets the minimum standards 
established by the Secretary in such regulations.
    ``(2)(A) The Secretary shall promulgate regulations which set forth 
minimum standards that any set of guidelines established pursuant to 
paragraph (1) must meet in providing for the coverage of the health 
care costs of children pursuant to child support orders issued or 
modified in the State, including--
            ``(i) the contents of such an order with respect to the 
        coverage of such costs;
            ``(ii) the distribution of responsibility for such costs;
            ``(iii) to the extent that such costs are to be covered 
        through health insurance--
                    ``(I) the provision of such insurance;
                    ``(II) the payment of insurance claims; and
                    ``(III) the rights of the noncustodial parent and 
                the custodial parent to insurance information;
            ``(iv) the circumstances under which a provider of health 
        insurance may or may not deny coverage to a child who is the 
        subject of such an order;
            ``(v) penalties to be imposed on providers of health 
        insurance who fail to comply with the guidelines; and
            ``(vi) how changes in the circumstances of the noncustodial 
        parent and the custodial parent are to be taken into account 
        with respect to the coverage of such costs.
    ``(B) In developing such standards, the Secretary shall ensure 
that, in establishing guidelines pursuant to paragraph (1), the State 
considers the following matters in the following order of importance:
            ``(i) The best interests of the child.
            ``(ii) The financial and other circumstances of the parents 
        of the child.
            ``(iii) Cost-effectiveness.
    ``(3) The preceding subsections of this section shall apply in like 
manner to the guidelines established pursuant to this subsection.''.
            (2) Regulations.--
                    (A) Proposed regulations.--Within 9 months after 
                the date of the enactment of this Act, the Secretary of 
                Health and Human Services shall issue proposed 
                regulations to implement the amendments made by this 
                subsection.
                    (B) Final regulations.--Within 14 months after the 
                date of the enactment of this Act, the Secretary of 
                Health and Human Services shall issue final regulations 
                to implement the amendments made by this subsection.
    (b) Inclusion in Incentive Payments Program of Dependent Health 
Insurance Provided Due to Successful Enforcement.--
            (1) In general.--Section 458(b) (42 U.S.C. 658(b)) is 
        amended by adding at the end the following:
    ``(5)(A) For purposes of this section, the successful enforcement 
by the State of a provision of a support order requiring an absent 
parent to obtain health insurance for 1 or more children shall be 
considered the collection of support from the absent parent, without 
regard to the means by which such support is provided.
    ``(B) The amount of support collected in any case in which the 
State successfully enforces a provision of a support order requiring an 
absent parent to obtain health insurance for 1 or more children shall 
be the savings to the State from the provision of such health insurance 
to such children, as determined in accordance with a health insurance 
savings methodology adopted by the State in accordance with regulations 
prescribed by the Secretary.''.
            (2) Regulations.--Within 6 months after the date of the 
        enactment of this Act, the Secretary of Health and Human 
        Services shall prescribe such regulations as may be necessary 
        to implement the amendment made by paragraph (1).
            (3) Study; report.--
                    (A) Study.--The Secretary of Health and Human 
                Services shall conduct a study to determine the 
                incentives that should be provided to encourage States 
                to enforce obligations of noncustodial parents to pay 
                (and obtain medical insurance coverage with respect to) 
                the reasonable and necessary health and dental expenses 
                of the children to whom the noncustodial parents owe 
                such obligations.
                    (B) Report.--Not later than 12 months after the 
                date of the enactment of this Act, the Secretary of 
                Health and Human Services shall submit to the Committee 
                on Ways and Means of the House of Representatives and 
                the Committee on Finance of the Senate the results of 
                the study required by subparagraph (A).

SEC. 213. RULES GOVERNING MODIFICATION OF CHILD SUPPORT ORDERS.

    (a) In General.--Chapter 115 of title 28, United States Code, is 
amended by inserting after section 1738A the following:
``Sec. 1738B. Rules governing modification of child support orders
    ``(a) In General.--A court of a State may not modify a child 
support order issued or modified with respect to a child by a court of 
another State, unless--
            ``(1) the child does not reside in the other State;
            ``(2) an individual who is a party to the order (other than 
        the party seeking modification of the order) does not reside in 
        the other State; or
            ``(3) all parties to the order have consented in writing to 
        the modification.
    ``(b) Definitions.--As used in this section:
            ``(1) Child.--The term `child' means an individual for whom 
        a child support order has been issued pursuant to the laws of a 
        State.
            ``(2) Child support order.--The term `child support order' 
        means a judgment, decree, or order that requires child support 
        (as defined in section 462(b) of the Social Security Act) to be 
        provided with respect to a child.
            ``(3) Court.--The term `court' means a court or 
        administrative agency of a State which is authorized by State 
        law to establish or modify a child support order.
            ``(4) State.--The term `State' means a State of the United 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the territories and possessions of the United States, and 
        Indian country as defined in section 1151 of title 18.''.

                          TITLE III--PARENTAGE

SEC. 301. PATERNITY ESTABLISHMENT.

    (a) State Plan Requirements.--Section 454 (42 U.S.C. 654), as 
amended by section 211(e) of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (25);
            (2) by striking the period at the end of paragraph (26) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (26) the following:
            ``(27) in order to encourage voluntary paternity 
        acknowledgement, provide for--
                    ``(A) the development and distribution of material 
                at schools, hospitals, agencies administering the 
                programs under part A of this title and title XIX, 
                prenatal health-care providers, WIC programs, health 
                departments, clinics, and other appropriate locations 
                that describe the benefits and responsibilities of 
                paternity establishment and the process by which 
                paternity services may be obtained,
                    ``(B) outreach programs at hospitals and birthing 
                facilities and programs for prenatal care, child birth, 
                and parenting, and
                    ``(C) the use of consent procedures.''.
    (b) Required Procedures.--Section 466(a)(5)(C) (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.''.
    (c) National Paternity Acknowledgment Affidavit.--Section 452(a)(7) 
(42 U.S.C. 652(a)(7)) is amended by inserting ``, and develop an 
affidavit to be used for the voluntary acknowledgment of paternity'' 
before the semicolon.
    (d) Signed Paternity Acknowledgment Affidavit Conclusively Presumed 
to Establish Paternity.--Section 466(a)(5)(D) (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 that has the effect of a final judgment at 
        law which can be revised, or which can be set aside based on 
        criteria established by the State for setting aside judgments, 
        other than by reason of the minority of the person who executed 
        the acknowledgment--
                    ``(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.''.

                         TITLE IV--ENFORCEMENT

SEC. 401. DIRECT WAGE WITHHOLDING.

    (a) State Law.--Section 466(b) (42 U.S.C. 666(b)), as amended by 
section 104 of this Act, is amended by adding at the end the following:
            ``(15)(A) Upon the issuance or modification by a State 
        court or administrative agency of an order imposing a child 
        support obligation on an individual, the State shall transmit 
        to any employer of the individual a wage withholding order 
        developed under section 452(a)(12) directing the employer to 
        withhold amounts from the wages of the individual pursuant to 
        the order.
            ``(B) Any individual or entity engaged in commerce, as a 
        condition of doing business in the State, shall, on receipt of 
        a wage withholding order developed under section 452(a)(12) 
        that is regular on its face and has been issued by a court of 
        any State--
                    ``(i) within 3 days after receipt of the order, 
                comply with the order;
                    ``(ii) forward the amount withheld pursuant to the 
                order to the State or custodial parent specified in the 
                order; and
                    ``(iii) keep records of the amounts so withheld.
            ``(C) Such an order may be served on the income source 
        directly or by first-class mail.
            ``(D) An individual or entity who complies with such an 
        order may not be held liable for wrongful withholding of income 
        from the employee subject to the order.
            ``(E) The State shall impose a civil fine of $1,000 on any 
        individual or entity who receives such an order, and fails to 
        comply with the order within 10 days after receipt. The 
        preceding sentence shall not be construed to affect the 
        authority of any court to stay the effectiveness of the fine.
            ``(16) If the State transmits to an individual or entity 
        engaged in commerce in another State a wage withholding order 
        issued by the State with respect to an employee of the 
        individual or entity, and the individual or entity contests or 
        refuses to comply with the order, the State shall send an 
        informational copy of the order to the registry established 
        under subsection (a)(12) of such other State or of the State 
        from which the income of the employee is paid.
            ``(17) If an employee requests a hearing to contest wage 
        withholding based on claim of a mistake of fact, the hearing 
        may be held in the State from which the income is paid or in 
        which the employee is employed, and, within 45 days after the 
        income source receives the withholding order, the entity 
        conducting the hearing must adjudicate the claim. The State in 
        which the hearing is held shall provide appropriate services in 
        cases enforced under the State plan to ensure that the 
        interests of the individual to whom the withheld income is to 
        be paid are adequately represented.''.
    (b) Uniform Withholding Order.--Section 452(a) (42 U.S.C. 652(a)), 
as amended by section 208(a) of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (10);
            (2) by striking the period at the end of paragraph (11) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (11) the following:
            ``(12) develop a uniform order to be used in all cases in 
        which income is to be withheld for the payment of child 
        support, which shall contain the name of the individual whose 
        income is to be withheld, the number of children covered by the 
        order, and the individual or State to whom the withheld income 
        is to be paid, and be generic to allow for the service of the 
        order on all sources of income.''.

SEC. 402. PRIORITIES IN APPLICATION OF WITHHELD WAGES.

    Section 466(b) (42 U.S.C. 666(a)), as amended by section 401(a) of 
this Act, is amended by inserting after paragraph (13) the following:
            ``(14) Procedures under which the amounts withheld pursuant 
        to a child support or wage withholding order are to be applied 
        in the following order:
                    ``(A) To payments of support due during the month 
                of withholding.
                    ``(B) To payments of premiums for health care 
                insurance coverage for dependent children.
                    ``(C) To payments of support due before the month 
                of withholding, and of unreimbursed health-care 
                expenses.''.

SEC. 403. ADDITIONAL BENEFITS SUBJECT TO GARNISHMENT.

    (a) Federal Death Benefits, Black Lung Benefits, and Veterans 
Benefits.--Section 462(f)(2) (42 U.S.C. 662(f)(2)) is amended by 
striking ``(not including'' and all that follows through 
``compensation)''.
    (b) Workers' Compensation.--Section 462(f) (42 U.S.C. 662(f)) is 
amended--
            (1) by striking ``or'' at the end of paragraph (1);
            (2) by striking the period at the end of paragraph (2) and 
        inserting ``, or''; and
            (3) by adding at the end the following:
            ``(3) workers' compensation benefits.''.

SEC. 404. CONSUMER CREDIT PROTECTION ACT AMENDMENTS.

    (a) Preemption of State Laws.--Section 307 of the Consumer Credit 
Protection Act (15 U.S.C. 1677) is amended--
            (1) by striking ``This'' and inserting ``(a) In General.--
        Subject to subsection (b), this'';
            (2) by striking ``or'' at the end of paragraph (1);
            (3) by striking the period at the end of paragraph (2) and 
        inserting ``, or''; and
            (4) by adding at the end the following:
            ``(3) providing a cause of action, either by the State or a 
        private individual, to enforce a Federal or State law related 
        to garnishment for the purpose of securing child support.
    ``(b) Exception.--Subsection (a)(1) shall not apply to the laws of 
any State that prohibit or restrict garnishments for the purpose of 
securing support for any person.''.
    (b) Other Forms of Income.--Title III of such Act (15 U.S.C. 1671 
et seq.) is amended by adding at the end the following:

``SEC. 308. OTHER FORMS OF INCOME.

    ``This title does not apply to forms of income that are not 
earnings within the definition contained in section 302(a).''.
    (c) Priority of Debts.--Title III of such Act (15 U.S.C. 1671 et 
seq.) is further amended by adding after section 308, as added by 
subsection (b) of this section, the following:

``SEC. 309. PRIORITY OF DEBTS.

    ``If an individual's disposable earnings are not sufficient to 
pay--
            ``(1) a garnishment intended to satisfy a debt owed to the 
        Federal Government; and
            ``(2) a garnishment intended to satisfy a debt related to 
        the support of any child,
the debt owed to the Federal Government shall be satisfied through 
garnishment only after the debt related to child support has first been 
satisfied.''.
    (d) Additional Indebtedness in Anti-Discharge Section.--Section 304 
of such Act (16 U.S.C. 1674) is amended--
            (1) by redesignating subsection (b) as subsection (c);
            (2) in subsection (c) (as so redesignated) by striking 
        ``subsection (a) of''; and
            (3) by inserting after subsection (a) the following:
    ``(b) No employer may discharge any employee by reason of the fact 
that the earnings of the employee have been subjected to garnishment 
for more than one indebtedness, if not more than one indebtedness 
arises from a debt other than an order for the support of a child.''.
    (e) Clerical Amendment.--The table of sections at the beginning of 
the title III of the Truth in Lending Act (15 U.S.C. 1671 et seq.) is 
amended by adding at the end the following:

``308. Other forms of income.
``309. Priority of debts.''.

SEC. 405. PROHIBITION AGAINST USE OF ELECTION OF REMEDIES DOCTRINE TO 
              PREVENT COLLECTION OF CHILD SUPPORT.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 104, 205, 
206, 207, 209, 210, and 212 of this Act, is amended by inserting after 
paragraph (20) the following:
            ``(21) Procedures which prohibit any State court from 
        applying the doctrine of election of remedies to prevent a 
        custodial parent from collecting or seeking to collect child 
        support from a noncustodial parent.''.

SEC. 406. HOLD ON OCCUPATIONAL, PROFESSIONAL, AND BUSINESS LICENSES.

    (a) State Hold Based on Warrant or Support Delinquency.--Section 
466(a) (42 U.S.C. 666(a)), as amended by sections 104, 205, 206, 207, 
209, 210, 212, and 405 of this Act, is amended by inserting after 
paragraph (21) the following:
            ``(22) Procedures under which the State occupational 
        licensing and regulating departments and agencies may not issue 
        or renew any occupational, professional, or business license 
        of--
                    ``(A) a noncustodial parent who is the subject of 
                an outstanding failure to appear warrant, capias, or 
                bench warrant related to a child support proceeding 
                that appears on the State's crime information system, 
                until removed from the system; and
                    ``(B) an individual who is delinquent in the 
                payment of child support, until the obligee or a State 
                prosecutor responsible for child support enforcement 
                consents to, or a court that is responsible for the 
                order's enforcement orders, the release of the hold on 
                the license, or an expedited inquiry and review is 
                completed while the individual is granted a 60-day 
                temporary license.''.
    (b) Federal Hold Based on Support Delinquency.--A Federal agency 
may not issue or renew any occupational, professional, or business 
license of an individual who is delinquent in the payment of child 
support, until the obligee, the obligee's attorney or a State 
prosecutor responsible for child support enforcement consents to, or a 
court that is responsible for the order's enforcement orders, the 
release of the hold on the license, or an expedited inquiry and review 
is completed while the individual is granted a 60-day temporary 
license.

SEC. 407. DRIVER'S LICENSES AND VEHICLE REGISTRATIONS DENIED TO PERSONS 
              FAILING TO APPEAR IN CHILD SUPPORT CASES.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 104, 205, 
206, 207, 209, 210, 212, 405, and 406(a) of this Act, is amended by 
inserting after paragraph (22) the following:
            ``(23) Procedures under which the State motor vehicle 
        department--
                    ``(A) may not issue or renew the driver's license 
                or any vehicle registration (other than temporary) of 
                any noncustodial parent who is the subject of an 
                outstanding failure to appear warrant, capias, or bench 
                warrant related to a child support proceeding that 
                appears on the State's crime information system, until 
                removed from the system;
                    ``(B) upon receiving notice that an individual to 
                whom a State driver's license or vehicle registration 
                has been issued is the subject of a warrant related to 
                a child support proceeding, shall issue a show cause 
                order to the individual requesting the individual to 
                demonstrate why the individual's driver's license or 
                vehicle registration should not be suspended until the 
                warrant is removed by the State responsible for issuing 
                the warrant; and
                    ``(C) in any case in which a show cause order has 
                been issued as described in subparagraph (B), may grant 
                a temporary license or vehicle registration to the 
                individual pending the show cause hearing or the 
                removal of the warrant, whichever occurs first.''.

SEC. 408. LIENS ON CERTIFICATES OF VEHICLE TITLE.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 104, 205, 
206, 207, 209, 210, 212, 405, 406(a), and 407 of this Act, is amended 
by inserting after paragraph (23) the following:
            ``(24) Procedures under which the State shall 
        systematically place liens on vehicle titles for child support 
        arrearages determined under a court order or an order of an 
        administrative process established under State law, using a 
        method for updating the value of the lien on a regular basis or 
        allowing for an expedited inquiry to and response from a 
        governmental payee for proof of the amount of arrears, with an 
        expedited method for the titleholder or the individual owing 
        the arrearage to contest the arrearage or to request a release 
        upon fulfilling the support obligation, and under which such a 
        lien has precedence over all other encumbrances on a vehicle 
        title other than a purchase money security interest, and that 
        the individual owed the arrearage may execute on, seize, and 
        sell the property in accordance with State law.''.

SEC. 409. ATTACHMENT OF BANK ACCOUNTS.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 104, 205, 
206, 207, 209, 210, 212, 405, 406(a), 407, and 408 of this Act, is 
amended by inserting after paragraph (24) the following:
            ``(25) Procedures under which--
                    ``(A) amounts on deposit in a bank account may be 
                seized to satisfy child support arrearages determined 
                under a court order or an order of an administrative 
                process established under State law, solely through an 
                administrative process, pending notice to and an 
                expedited opportunity to be heard from the account 
                holder or holders; and
                    ``(B) if the account holder or holders fail to 
                successfully challenge the seizure (as determined under 
                State law), the bank may be required to pay from the 
                account to the entity with the right to collect the 
                arrearage the lesser of--
                            ``(i) the amount of the arrearage; or
                            ``(ii) the amount on deposit in the 
                        account.''.

SEC. 410. SEIZURE OF LOTTERY WINNINGS, SETTLEMENTS, PAYOUTS, AWARDS, 
              AND BEQUESTS, AND SALE OF FORFEITED PROPERTY, TO PAY 
              CHILD SUPPORT ARREARAGES.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 104, 205, 
206, 207, 209, 210, 212, 405, 406(a), 407, 408, and 409 of this Act, is 
amended by inserting after paragraph (25) the following:
            ``(26) Procedures, in addition to other income withholding 
        procedures, under which a lien is imposed against property with 
        the following effect:
                    ``(A) The distributor of the winnings from a State 
                lottery or State-sanctioned or tribal-sanctioned 
                gambling house or casino shall--
                            ``(i) suspend payment of the winnings from 
                        the person otherwise entitled to the payment 
                        until an inquiry is made to and a response is 
                        received from the State child support 
                        enforcement agency as to whether the person 
                        owes a child support arrearage; and
                            ``(ii) if there is such an arrearage, 
                        withhold from the payment the lesser of the 
                        amount of the payment or the amount of the 
                        arrearage, and pay the amount withheld to the 
                        agency for distribution.
                    ``(B) The person required to make a payment under a 
                policy of insurance or a settlement of a claim made 
                with respect to the policy shall--
                            ``(i) suspend the payment until an inquiry 
                        is made to and a response received from the 
                        agency as to whether the person otherwise 
                        entitled to the payment owes a child support 
                        arrearage; and
                            ``(ii) if there is such an arrearage, 
                        withhold from the payment the lesser of the 
                        amount of the payment or the amount of the 
                        arrearage, and pay the amount withheld to the 
                        agency for distribution.
                    ``(C) The payor of any amount pursuant to an award, 
                judgment, or settlement in any action brought in 
                Federal or State court shall--
                            ``(i) suspend the payment of the amount 
                        until an inquiry is made to and a response is 
                        received from the agency as to whether the 
                        person otherwise entitled to the payment owes a 
                        child support arrearage; and
                            ``(ii) if there is such an arrearage, 
                        withhold from the payment the lesser of the 
                        amount of the payment or the amount of the 
                        arrearage, and pay the amount withheld to the 
                        agency for distribution.
                    ``(D) If the State seizes property forfeited to the 
                State by an individual by reason of a criminal 
                conviction, the State shall--
                            ``(i) hold the property until an inquiry is 
                        made to and a response is received from the 
                        agency as to whether the individual owes a 
                        child support arrearage; and
                            ``(ii) if there is such an arrearage, sell 
                        the property and, after satisfying the claims 
                        of all other private or public claimants to the 
                        property and deducting from the proceeds of the 
                        sale the attendant costs (such as for towing, 
                        storage, and the sale), pay the lesser of the 
                        remaining proceeds or the amount of the 
                        arrearage directly to the agency for 
                        distribution.
                    ``(E) Any person required to make a payment in 
                respect of a decedent shall--
                            ``(i) suspend the payment until an inquiry 
                        is made to and a response received from the 
                        agency as to whether the person otherwise 
                        entitled to the payment owes a child support 
                        arrearage; and
                            ``(ii) if there is such an arrearage, 
                        withhold from the payment the lesser of the 
                        amount of the payment or the amount of the 
                        arrearage, and pay the amount withheld to the 
                        agency for distribution.''.

SEC. 411. FRAUDULENT TRANSFER PURSUIT.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 104, 205, 
206, 207, 209, 210, 212, 405, 406(a), 407, 408, 409, and 410 of this 
Act, is amended by inserting after paragraph (26) the following:
            ``(27) Procedures requiring that, in any case related to 
        child support, any transfer of property by an individual who 
        owes a child support arrearage shall be presumed to be made 
        with the intent to avoid payment of the arrearage, and may be 
        rebutted by evidence to the contrary.''.

SEC. 412. FULL IRS COLLECTION.

    The Secretary of the Treasury, in consultation with the Secretary 
of Health and Human Services, shall by regulation simplify the full 
collection process under section 6305 of the Internal Revenue Code of 
1986 and reduce the amount of child support arrearage needed before an 
individual may apply for collection under such section.

SEC. 413. TAX REFUND OFFSET PROGRAM EXPANDED TO COVER NON-AFDC POST-
              MINOR CHILDREN.

    Section 464(c) (42 U.S.C. 664(c)) is amended--
            (1) by striking ``(1) Except as provided in paragraph (2), 
        as'' and inserting ``As'';
            (2) by inserting ``(whether or not a minor)'' after ``a 
        child'' each place such term appears; and
            (3) by striking paragraphs (2) and (3).

SEC. 414. ATTACHMENT OF PUBLIC AND PRIVATE RETIREMENT FUNDS.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 104, 205, 
206, 207, 209, 210, 212, 405, 406(a), 407, 408, 409, 410, and 411 of 
this Act, is amended by inserting after paragraph (27) the following:
            ``(28) Procedures under which an individual owed a child 
        support arrearage (determined under a court order or an order 
        of an administrative process established under State law) may, 
        notwithstanding section 401(a)(13) of the Internal Revenue Code 
        of 1986, attach any interest in any public or private 
        retirement plan of the individual who owes the support, without 
        the requirement of a separate court order, and with notice and 
        an expedited hearing provided if requested by the individual 
        who owes the support.''.

SEC. 415. REPORTING OF CHILD SUPPORT ARREARAGES TO CREDIT BUREAUS.

    Section 466(a)(7)(A) (42 U.S.C. 666(a)(7)(A)) is amended by 
striking ``$1,000'' and inserting ``the amount of the monthly support 
obligation''.

SEC. 416. ELIMINATION OF STATUTES OF LIMITATIONS IN CHILD SUPPORT 
              CASES.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 104, 205, 
206, 207, 209, 210, 212, 405, 406(a), 407, 408, 409, 410, 411, and 414 
of this Act, is amended by inserting after paragraph (28) the 
following:
            ``(29) Procedures which ensure that there is no limit to 
        the period in which any court order, or order of an 
        administrative process established under State law, for support 
        or maintenance of a child, may be enforced.''.

SEC. 417. INTEREST.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 104, 205, 
206, 207, 209, 210, 212, 405, 406(a), 407, 408, 409, 410, 411, 414, and 
416 of this Act, is amended by inserting after paragraph (29) the 
following:
            ``(30) Procedures under which the State child support 
        enforcement agency must assess and collect interest on all 
        child support judgments, at the rate determined for interest on 
        money judgments, in addition to any late payment fee imposed by 
        the State under section 454(21).''.

SEC. 418. BANKRUPTCY.

    (a) Definition.--Section 101 of title 11, United States Code, is 
amended by inserting after paragraph (12) the following:
            ``(12A) `debt for child support' means a debt of a kind 
        specified in section 523(a)(5) of this title for maintenance or 
        support of a child of the debtor;''.
    (b) Exception From Automatic Stay.--Section 362(b) of title 11, 
United States Code, is amended--
            (1) by inserting ``(A)'' after ``(2);
            (2) by inserting ``or'' after the semicolon; and
            (3) by adding at the end the following:
            ``(B) under subsection (a) of the commencement or 
        continuation of a civil action or administrative proceeding 
        against the debtor--
                    ``(i) to establish parentage;
                    ``(ii) to establish, review, adjust, or modify a 
                judgment or order creating a debt for child support; or
                    ``(iii) to enforce such judgment or order to 
                collect a debt for child support;''.
    (c) Treatment of Debt for Child Support in Proceedings Under 
Chapters 11, 12, and 13.--
            (1) Chapter 11.--Section 1123(a) of title 11, United States 
        Code, is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (6);
                    (B) by striking the period at the end of paragraph 
                (7) and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(8) provide for the full payment when due of debts for 
        child support unless the parent with custody, or the guardian, 
        of the child agrees otherwise.''.
            (2) Chapter 12.--Section 1222(a) of title 11, United States 
        Code, is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (2);
                    (B) by striking the period at the end of paragraph 
                (3) and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(4) provide for the full payment when due of debts for 
        child support unless the parent with custody, or the guardian, 
        of the child agrees otherwise.''.
            (3) Chapter 13.--Section 1322(a) of title 11, United States 
        Code, is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (2);
                    (B) by striking the period at the end of paragraph 
                (3) and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(4) provide for the full payment when due of debts for 
        child support unless the parent with custody, or the guardian, 
        of the child agrees otherwise.''.
    (d) Assertion of Claim for Child Support.--Subchapter I of chapter 
5 of title 11, United States Code, is amended by adding at the end the 
following:
``Sec. 511. Assertion of claim for child support
    ``(a) Fee.--No fee shall be charged for filing of claim for a debt 
for child support.
    ``(b) Requirements for Appearance.--A claim for a debt for child 
support may be made in any court by an individual appearing--
            ``(1) personally; or
            ``(2) through an attorney admitted to practice in any 
        district court of the United States, without the attorney's 
        being required to meet any admission requirements other than 
        those applicable in the judicial district of the United States 
        in which the attorney is admitted to practice.''.
    (e) Clarification of the Nondischargeability of State Public Debts 
and Assigned Child Support Based on the Provision of Expenditures Under 
Parts A and E of Title IV of the Social Security Act.--Section 523 of 
title 11, United States Code, is amended by adding at the end the 
following:
    ``(f) For the purposes of subsection (a)(5), a debt to a child of 
the debtor for maintenance for or support of the child includes State 
public debts and assigned child support based on the provision of 
expenditures under parts A and E of title IV of the Social Security 
Act.''.
    (f) Priority of Claims.--(1) Section 507 of title 11, United States 
Code, is amended--
            (A) in subsection (a)--
                    (i) in paragraph (8) by striking ``(8) Eighth'' and 
                inserting ``(9) Ninth'',
                    (ii) in paragraph (7) by striking ``(7) Seventh'' 
                and inserting ``(8) Eighth'', and
                    (iii) by inserting after paragraph (6) the 
                following:
            ``(7) Seventh, allowed unsecured claims due to a spouse, 
        former spouse, or child of the debtor for maintenance for or 
        support of a child, in connection with a separation agreement, 
        divorce decree, or other order of a court of record, a 
        determination made in accordance with State or territorial law 
        by a governmental unit, or a property settlement agreement, but 
        not to the extent that--
                    ``(A) such debt is assigned to another entity, 
                voluntarily, by operation of law, or otherwise (other 
                than debts assigned pursuant to section 402(a)(26) of 
                the Social Security Act, or any such debt which has 
                been assigned to the Federal Government or to a State 
                or any political subdivision of such State); or
                    ``(B) such debt includes a liability designated as 
                maintenance or support unless such liability is 
                actually in the nature of maintenance or support;'', 
                and
            (B) in subsection (d) by striking ``or (6)'' and inserting 
        ``(6), or (7)''.
    (2) Title 11 of the United States Code is amended--
            (A) in sections 502(i), 503(b)(1)(B)(i), 523(a)(1)(A), and 
        1123(a)(1) by striking ``507(a)(7)'' and inserting 
        ``507(a)(8)'',
            (B) in section 724(b)(2) by striking ``or 507(a)(6)'' and 
        inserting ``507(a)(6), or 507(a)(7)'',
            (C) in section 726(b) by striking ``or (7)'' and inserting 
        ``, (7), or (8)'', and
            (D) in section 1129(a)(9)--
                    (i) in subparagraph (B) by striking ``or 
                507(a)(6)'' and inserting ``, 507(a)(6), or 
                507(a)(7)'', and
                    (ii) in subparagraph (C) by striking ``507(a)(7)'' 
                and inserting ``507(a)(8)''.
    (g) Protection of Liens.--Section 522(f)(1) of title 11, United 
States Code, is amended to read as follows:
            ``(1) a judicial lien (other than a judicial lien that 
        secures a debt to a spouse, former spouse, or child of the 
        debtor for maintenance for or support of a child, in connection 
        with a separation agreement, divorce decree or other order of a 
        court of record, determination made in accordance with State or 
        territorial law by a governmental unit, or property settlement 
        agreement, to the extent that the debt--
                    ``(A) is not assigned to another entity, 
                voluntarily, by operation of law, or otherwise; and
                    ``(B) includes a liability designated as 
                maintenance or support, unless such liability is 
                actually in the nature of maintenance or support).''.
    (h) Exception to Discharge.--Section 523 of title 11, United States 
Code, is amended--
            (1) in subsection (a)--
                    (A) in paragraph (11) by striking ``or'' at the 
                end,
                    (B) in paragraph (12) by inserting ``or'' after the 
                semicolon at the end, and
                    (C) by adding at the end the following:
            ``(13) assumed or incurred by the debtor in the course of a 
        divorce or separation or in connection with a separation 
        agreement, divorce decree or other order of a court of record, 
        a determination made in accordance with State or territorial 
        law by a governmental unit, or property settlement agreement, 
        unless--
                    ``(A) excepting such debt from discharge under this 
                paragraph would impose an undue hardship for the 
                debtor; and
                    ``(B) discharging such debt would result in a 
                benefit to the debtor that outweighs the detrimental 
                consequences to a child of the debtor.'', and
            (2) in subsection (c)(1) by striking ``or (6)'' each place 
        it appears and inserting ``, or (13)''.
    (i) Protection Against Trustee Avoidance.--Section 547(c) of title 
11, United States Code, is amended--
                    (1) by striking ``or'' at the end of paragraph (6);
                    (2) by redesignating paragraph (7) as paragraph 
                (8); and
                    (3) by inserting after paragraph (6) the following 
                new paragraph:
            ``(7) to the extent that the transfer was a bona fide 
        payment of a debt to a spouse, former spouse, or child of the 
        debtor for maintenance for or support of such child, in 
        connection with a separation agreement, divorce decree or other 
        order of a court of record, determination made in accordance 
        with State or territorial law by a governmental unit, or 
        property settlement agreement, but not to the extent that such 
        debt--
                    ``(A) is assigned to another entity, voluntarily, 
                by operation of law, or otherwise; or
                    ``(B) includes a liability designated as 
                maintenance or support, unless such liability is 
                actually in the nature of maintenance or support; or''.

SEC. 419. FEDERAL GOVERNMENT COOPERATION IN ENFORCEMENT OF SUPPORT 
              OBLIGATIONS OF MEMBERS AND FORMER MEMBERS OF THE ARMED 
              FORCES.

    (a) Availability of Current Locator Information.--
            (1) Maintenance of address information.--Each worldwide 
        personnel locator service of the Armed Forces and each 
        personnel locator service of the Armed Forces maintained for a 
        military installation shall include the residential address of 
        each member of the Armed Forces listed in such service. Within 
        30 days after a change of duty station or residential address 
        of a member listed in a locator service, the Secretary 
        concerned shall update the locator service to indicate the new 
        residential address of the member.
            (2) Availability of information.--The Secretary of Defense 
        shall prescribe regulations to make information regarding the 
        residential address of a member of the Armed Forces available, 
        on request, to any authorized person for the purposes of part D 
        of title IV of the Social Security Act.
            (3) Definitions.--For purposes of this subsection:
                    (A) The term ``authorized person'' has the meaning 
                given that term in section 453(c) of the Social 
                Security Act (42 U.S.C. 653(c)).
                    (B) The term ``Secretary concerned'' has the 
                meaning given that term in section 101(a)(9) of title 
                10, United States Code.
    (b) Facilitating the Granting of Leave for Attendance at 
Hearings.--
            (1) Regulations required.--The Secretary concerned shall 
        prescribe regulations to facilitate the granting of a leave of 
        absence to a member of the Armed Forces under the jurisdiction 
        of that Secretary when necessary for the member to attend a 
        hearing of a court that is conducted in connection with a civil 
        action--
                    (A) to determine whether the member is a natural 
                parent of a child; or
                    (B) to determine an obligation of the member to 
                provide child support.
            (2) Waiver authority.--The regulations prescribed under 
        paragraph (1) may authorize a waiver of the applicability of 
        the regulations to a member of the Armed Forces when--
                    (A) the member is serving in an area of combat 
                operations; or
                    (B) such a waiver is otherwise necessary in the 
                national security interest of the United States.
            (3) Definitions.--For purposes of this subsection:
                    (A) The term ``court'' has the meaning given that 
                term in section 1408(a) of title 10, United States 
                Code.
                    (B) The term ``child support'' has the meaning 
                given such term in section 462 of the Social Security 
                Act (42 U.S.C. 662).
                    (C) The term ``Secretary concerned'' has the 
                meaning given that term in section 101(a)(9) of title 
                10, United States Code.
    (c) Payment of Military Retired Pay in Compliance With Court 
Orders.--
            (1) Date of certification of court order.--Section 1408 of 
        title 10, United States Code, is amended--
                    (A) by redesignating subsection (i) as subsection 
                (j); and
                    (B) by inserting after subsection (h) the following 
                new subsection:
    ``(i) Certification Date.--It is not necessary that the date of a 
certification of the authenticity or completeness of a copy of a court 
order for child support received by the Secretary concerned for the 
purposes of this section be recent in relation to the date of 
receipt.''.
            (2) Payments consistent with assignments of rights to 
        states.--
                    (A) Authority.--Subsection (d)(1) of such section 
                is amended by inserting after the first sentence the 
                following: ``In the case of a spouse or former spouse 
                who, pursuant to section 402(a)(26) of the Social 
                Security Act (42 U.S.C. 602(26)), assigns to a State 
                the rights of the spouse or former spouse to receive 
                support, the Secretary concerned may make the child 
                support payments referred to in the preceding sentence 
                to that State in amounts consistent with the assignment 
                of rights.''.
                    (B) Rule of construction.--Subsection (c)(2) of 
                such section is amended--
                            (i) by inserting after the first sentence 
                        the following: ``The second sentence of 
                        subsection (d)(1) shall not be construed to 
                        create any such right, title, or interest.'';
                            (ii) by inserting ``(A)'' after ``(2)''; 
                        and
                            (iii) by designating the last sentence as 
                        subparagraph (B) and conforming the margins 
                        accordingly.
            (3) Arrearages owed by members of the uniformed services.--
        Part D of title IV (42 U.S.C. 651-669) is amended by inserting 
        after section 465 the following:

``SEC. 465A. PAYMENT OF CHILD SUPPORT ARREARAGES OWED BY MEMBERS OF THE 
              UNIFORMED SERVICES.

    ``Any authority, requirement, or procedure provided in this part or 
section 1408 of title 10, United States Code, that applies to the 
payment of child support owed by a member of the uniformed services (as 
defined in section 101 of title 37, United States Code) shall apply to 
the payment of child support arrearages as well as to amounts of child 
support that are currently due.''.

SEC. 420. STATES REQUIRED TO ENACT THE UNIFORM INTERSTATE FAMILY 
              SUPPORT ACT.

    (a) In General.--Section 466 (42 U.S.C. 666) is amended by adding 
at the end the following:
    ``(f) In order to satisfy section 454(20)(A), each State must have 
in effect laws which adopt the officially approved version of the 
Uniform Interstate Family Support Act adopted by the National 
Conference of Commissioners on Uniform State Laws in August 1992.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to payments under part D of title IV of the Social Security Act 
for calendar quarters ending 2 or more years after the date of the 
enactment of this Act.

SEC. 421. DENIAL OF PASSPORTS TO NONCUSTODIAL PARENTS SUBJECT TO STATE 
              ARREST WARRANTS IN CASES OF NONPAYMENT OF CHILD SUPPORT.

    The Secretary of State is authorized to refuse a passport or 
revoke, restrict, or limit a passport in any case in which the 
Secretary of State determines or is informed by competent authority 
that the applicant or passport holder is a noncustodial parent who is 
the subject of an outstanding State warrant of arrest for nonpayment of 
child support, where the amount in controversy is not less than 
$10,000.

SEC. 422. DENIAL OF FEDERAL BENEFITS, LOANS, GUARANTEES, AND EMPLOYMENT 
              TO CERTAIN PERSONS WITH LARGE CHILD SUPPORT ARREARAGES.

    (a) Benefits, Loans, and Guarantees.--Notwithstanding any other 
provision of law, each agency or instrumentality of the Federal 
Government may not, under any program that the agency or 
instrumentality supervises or administers, provide a benefit to, make a 
loan to, or provide any guarantee for the benefit of, any person--
            (1) whose child support arrearages, determined under a 
        court order or an order of an administrative process 
        established under State law, exceed $1,000; and
            (2) who is not in compliance with a plan or an agreement to 
        repay the arrearages.
    (b) Employment.--
            (1) In general.--Notwithstanding any other provision of 
        law, an individual shall be considered ineligible to accept 
        employment in a position in the Federal Government if--
                    (A) such individual has child support arrearages, 
                determined under a court order or an order of an 
                administrative process established under State law, 
                exceeding $1,000; and
                    (B) such individual is not in compliance with a 
                plan or agreement to repay the arrearages.
            (2) Regulations.--Regulations to carry out paragraph (1) 
        shall--
                    (A) with respect to positions in the executive 
                branch, be prescribed by the President (or his 
                designee);
                    (B) with respect to positions in the legislative 
                branch, be prescribed jointly by the President pro 
                tempore of the Senate and the Speaker of the House of 
                Representatives (or their designees); and
                    (C) with respect to positions in the judicial 
                branch, be prescribed by the Chief Justice of the 
                United States (or his designee).
            (3) Child support defined.--For purposes of this 
        subsection, the term ``child support'' has the meaning given 
        such term in section 462 of the Social Security Act.

SEC. 423. STATES REQUIRED TO ORDER COURTS TO ALLOW ASSIGNMENT OF LIFE 
              INSURANCE BENEFITS TO SATISFY CHILD SUPPORT ARREARAGES.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 104, 205, 
206, 207, 209, 210, 212, 405, 406(a), 407, 408, 409, 410, 411, 414, 
416, and 417 of this Act, is amended by inserting after paragraph (30) 
the following:
            ``(31) Procedures allowing State courts to--
                    ``(A) order the issuer of a life insurance policy 
                to change the beneficiary provisions of the policy to 
                effect an assignment of the benefits payable to a 
                beneficiary under the policy, in whole or in part, to a 
                child to satisfy a child support arrearage, determined 
                under a court order or an order of an administrative 
                process established under State law, owed by the 
                beneficiary with respect to the child; and
                    ``(B) prohibit the sale, assignment, or pledge as 
                collateral of the policy, in whole or in part, by the 
                beneficiary of the policy.''.

SEC. 424. INTERESTS IN JOINTLY HELD PROPERTY SUBJECT TO ASSIGNMENT TO 
              SATISFY CHILD SUPPORT ARREARAGES.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 104, 205, 
206, 207, 209, 210, 212, 405, 406(a), 407, 408, 409, 410, 411, 414, 
416, 417, and 423 of this Act, is amended by inserting after paragraph 
(31) the following:
            ``(32) Procedures allowing State courts to order the 
        assignment of an interest in jointly held property to an 
        individual owed a child support arrearage (determined under a 
        court order or an order of an administrative process 
        established under State law) by a holder of an interest in the 
        property, to the extent of the arrearage.''.

SEC. 425. INTERNATIONAL CHILD SUPPORT ENFORCEMENT.

    (a) Sense of the Congress That the United States Should Ratify the 
United Nations Convention of 1956.--It is the sense of the Congress 
that the United States should ratify the United Nations Convention of 
1956.
    (b) Treatment of International Child Support Cases as Interstate 
Cases.--Section 454 (42 U.S.C. 654), as amended by sections 211(e) and 
301(a) of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (25);
            (2) by striking the period at the end of paragraph (26) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (26) the following:
            ``(27) provide that the State must treat international 
        child support cases in the same manner as the State treats 
        interstate child support cases.''.

SEC. 426. NONLIABILITY FOR DEPOSITORY INSTITUTIONS PROVIDING FINANCIAL 
              RECORDS TO STATE CHILD SUPPORT ENFORCEMENT AGENCIES IN 
              CHILD SUPPORT CASES.

    (a) In General.--Notwithstanding any other provision of Federal or 
State law, a depository institution shall not be liable under any 
Federal or State law to any person for disclosing any financial record 
of an individual to a State child support enforcement agency attempting 
to establish, modify, or enforce a child support obligation of such 
individual.
    (b) Prohibition of Disclosure of Financial Record Obtained by State 
Child Support Enforcement Agency.--A State child support enforcement 
agency which obtains a financial record of an individual from a 
financial institution pursuant to subsection (a) may disclose such 
financial record only for the purpose of, and to the extent necessary 
in, establishing, modifying, or enforcing a child support obligation of 
such individual.
    (c) Civil Damages for Unauthorized Disclosure.--
            (1) Disclosure by state officer or employee.--If any 
        officer or employee of a State knowingly, or by reason of 
        negligence, discloses a financial record of an individual in 
        violation of subsection (b), such individual may bring a civil 
        action for damages against the officer or employee in the 
        personal capacity of the officer or employee, in a district 
        court of the United States.
            (2) No liability for good faith but erroneous 
        interpretation.--No liability shall arise under this subsection 
        with respect to any disclosure which results from a good faith, 
        but erroneous, interpretation of subsection (b).
            (3) Damages.--In any action brought under paragraph (1), 
        upon a finding of liability on the part of the defendant, the 
        defendant shall be liable to the plaintiff in an amount equal 
        to the sum of--
                    (A) the greater of--
                            (i) $1,000 for each act of unauthorized 
                        disclosure of a financial record with respect 
                        to which such defendant is found liable; or
                            (ii) the sum of--
                                    (I) the actual damages sustained by 
                                the plaintiff as a result of such 
                                unauthorized disclosure; plus
                                    (II) in the case of a willful 
                                disclosure or a disclosure which is the 
                                result of gross negligence, punitive 
                                damages; plus
                    (B) the costs of the action.
    (d) Definitions.--For purposes of this section:
            (1) The term ``depository institution'' means--
                    (A) a depository institution, as defined by section 
                3(c) of the Federal Deposit Insurance Act;
                    (B) an institution-affiliated party, as defined by 
                section 3(u) of such Act; and
                    (C) any Federal credit union or State credit union, 
                as defined by section 101 of the Federal Credit Union 
                Act, including an institution-affiliated party of such 
                a credit union, as defined by section 206(r) of such 
                Act.
            (2) The term ``financial record'' has the meaning given 
        such term by section 1101 of the Right to Financial Privacy Act 
        of 1978.
            (3) The term ``State child support enforcement agency'' 
        means a State agency which administers a State program for 
        establishing and enforcing child support obligations.

SEC. 427. COST-OF-LIVING ADJUSTMENT OF CHILD SUPPORT AWARDS.

    Part D of title IV (42 U.S.C. 651-669) is amended by inserting 
after section 467 the following:

``SEC. 467A. COST-OF-LIVING ADJUSTMENT OF CHILD SUPPORT AWARDS.

    ``(a) In General.--Each State, as a condition for having its State 
plan approved under this part, shall have in effect such laws and 
procedures as are necessary to ensure that each child support order 
issued or modified in the State after the effective date of this 
section shall provide that amount of any child support award specified 
in the order shall, on each anniversary of the 1st day of the calendar 
month in which the order is so issued or modified, increase by the 
percentage (if any) by which--
            ``(1) 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 that ends with the anniversary; exceeds
            ``(2) the average of the Consumer Price Index (as so 
        defined) for the 12-month period that ends on such 1st day.
    ``(b) Rule of Interpretation.--Subsection (a) shall not be 
construed to eliminate other grounds for modifying a child support 
award.''.

SEC. 428. ANNUAL EXCHANGE OF FINANCIAL INFORMATION BY PARTIES TO CHILD 
              SUPPORT ORDER.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 104, 205, 
206, 207, 209, 210, 212, 405, 406(a), 407, 408, 409, 410, 411, 414, 
416, 417, 423, and 424 of this Act, is amended by inserting after 
paragraph (32) the following:
            ``(33) Procedures to ensure that each party to a child 
        support order issued or modified in the State discloses to the 
        other party to the order a complete statement of the financial 
        condition of the party.''.

SEC. 429. CRIMINAL PENALTIES FOR FAILURE TO PAY CHILD SUPPORT.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 104, 205, 
206, 207, 209, 210, 212, 405, 406(a), 407, 408, 409, 410, 411, 414, 
416, 417, 423, and 424 of this Act, is amended by inserting after 
paragraph (33) the following:
            ``(34) Procedures under which--
                    ``(A) criminal penalties may be imposed for the 
                failure to pay child support; and
                    ``(B) use immunity may be granted to compel 
                testimony in civil child support proceedings in which 
                the defendant claims a Fifth Amendment privilege 
                against self-incrimination, and if granted, bars 
                Federal or other State criminal prosecution for failure 
                to pay child support based on the testimony given in 
                the civil proceeding with respect to which use immunity 
                was granted.''.

                  TITLE V--COLLECTION AND DISTRIBUTION

SEC. 501. PRIORITIES IN DISTRIBUTION OF COLLECTED CHILD SUPPORT.

    (a) State Distribution Plan.--Section 457 (42 U.S.C. 657) is 
amended by adding at the end the following:
    ``(e) Beginning on September 1, 1995, the amounts that a State 
collects as child support (including interest) pursuant to a plan 
approved under this part, other than amounts so collected through a tax 
refund offset, shall (subject to subsection (d)) be paid--
            ``(1) first to the individual owed the support or (if the 
        individual assigned to the State the payment of the support) to 
        the State, to the extent necessary to satisfy the current 
        month's support obligation;
            ``(2) then to the individual owed the support, to the 
        extent necessary to satisfy any arrearage;
            ``(3) then, at the option of the State, to the State, to 
        the extent necessary to reimburse the State for assistance 
        provided with respect to the child under this title (without 
        interest); and
            ``(4) then to other States, to the extent necessary to 
        reimburse such other States for assistance provided with 
        respect to the child under this title (without interest), in 
        the order in which such assistance was provided.''.
    (b) Study and Pilot Projects.--
            (1) In general.--The Comptroller General of the United 
        States shall conduct studies and pilot projects of systems 
        under which States would be required to pay the child support 
        collected pursuant to a State plan approved under part D of 
        title IV of the Social Security Act to the individuals to whom 
        the support is owed before making any payment to reimburse any 
        State for assistance provided with respect to the child under 
        part A of such title.
            (2) Report to the congress.--Within 3 years after the date 
        of the enactment of this Act, the Comptroller General shall 
        submit to the Committee on Ways and Means of the House of 
        Representatives and the Committee on Finance of the Senate a 
        report on each study and pilot project conducted pursuant to 
        paragraph (1), including a cost-benefit analysis and an 
        analysis of the costs that would be avoided under the program 
        of aid to families with dependent children under part A of 
        title IV of the Social Security Act, the program of medical 
        assistance under title XIX of such Act, and the food stamp 
        program under the Food Stamp Act of 1977, if the various 
        systems studied were implemented.
    (c) Revision of Federal Income Tax Refund Offset.--Section 6402 of 
the Internal Revenue Code of 1986 (relating to authority to make 
credits or refunds) is amended--
            (1) in subsection (c), by striking ``after any other 
        reductions allowed by law (but before'' and inserting ``before 
        any other reductions allowed by law (and before''; and
            (2) in subsection (d), by striking ``with respect to past-
        due support collected pursuant to an assignment under section 
        402(a)(26) of the Social Security Act''.
    (d) $50 Disregarded for All Means-Tested Programs.--Section 
457(b)(1) (42 U.S.C. 657(b)(1)) is amended by inserting ``under this 
part or under any other Federal program which determines eligibility 
for or the amount of assistance based on the income or assets of the 
applicant for or recipient of the assistance'' after ``during such 
month''.
    (e) Fill-The-Gap Policies Allowed.--Section 402(a)(28) (42 U.S.C. 
602(a)(28)) is amended by striking the open parenthesis and all that 
follows through the close parenthesis.

SEC. 502. STATE CLAIMS AGAINST NONCUSTODIAL PARENT LIMITED TO 
              ASSISTANCE PROVIDED TO THE CHILD.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 104, 205, 
206, 207, 209, 210, 212, 405, 406(a), 407, 408, 409, 410, 411, 414, 
416, 417, 423, 424, 428, and 429 of this Act, is amended by inserting 
after paragraph (34) the following:
            ``(35)(A) Procedures under which any claims the State may 
        have against a noncustodial parent for a child's portion of the 
        assistance provided under a State plan approved under part A 
        shall not exceed the amount specified as child support under a 
        court or administrative order.
            ``(B) As used in subparagraph (A), the term `child's 
        portion' means the assistance that would have been provided 
        with respect to the child if the needs of the caretaker 
        relative of the child had not been taken into account in making 
        the determination with respect to the child's family under 
        section 402(a)(7).''.

SEC. 503. FEES FOR NON-AFDC CLIENTS.

    (a) In General.--Section 454(6) (42 U.S.C. 654(6)) is amended--
            (1) in subparagraph (B), by striking ``or recovered'' and 
        all that follows through ``program)'';
            (2) in subparagraph (C), by inserting ``on the parent who 
        owes the child or spousal support obligation involved'' after 
        ``imposed'';
            (3) in subparagraph (D), by striking ``individual who'' and 
        inserting ``the noncustodial parent if the child whose 
        parentage is to be determined through the tests''; and
            (4) in subparagraph (E), by striking all that follows ``may 
        be collected'' and inserting ``from the parent who owes the 
        child or spousal support obligation involved, but only after 
        all current and past-due support and interest charges have been 
        collected''.
    (b) Publication of Fee Schedules.--Section 454(10) (42 U.S.C. 
654(10)) is amended by inserting ``, and shall publish guidelines and 
schedules of fees which may be imposed under paragraph (6), and which 
shall be reasonable'' before the semicolon.

SEC. 504. COLLECTION AND DISBURSEMENT POINTS FOR CHILD SUPPORT.

    Section 454 (42 U.S.C. 654), as amended by sections 211(e), 301(a), 
and 425 of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (26);
            (2) by striking the period at the end of paragraph (27) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (27) the following:
            ``(28) provide for only 1 location, or several local or 
        regional locations for the collection of, accounting for, and 
        disbursement of child support in cases enforced under the State 
        plan under this part.''.

                         TITLE VI--FEDERAL ROLE

SEC. 601. PLACEMENT AND ROLE OF THE OFFICE OF CHILD SUPPORT 
              ENFORCEMENT.

    Section 452(a) (42 U.S.C. 652(a)), as amended by sections 208(a) 
and 401(b) of this Act, is amended--
            (1) in the matter preceding paragraph (1), by striking ``, 
        under the direction'' and all that follows through ``and who'' 
        and inserting ``which shall be known as the Office of Child 
        Support Enforcement, shall be under the direction of an 
        Assistant Secretary appointed by the President with the advice 
        and consent of the Senate, and shall have its own legal 
        counsel. The Assistant Secretary shall report directly to the 
        Secretary and'';
            (2) in paragraph (10)--
                    (A) in subparagraph (A), by inserting ``using a 
                methodology that reflects cost-avoidance as well as 
                cost-recovery'' after ``the States and the Federal 
                Government'';
                    (B) by redesignating subparagraphs (H) and (I) as 
                subparagraphs (I) and (J), respectively; and
                    (C) by inserting after subparagraph (G) the 
                following:
                    ``(H) the budgetary allocation of the $50 pass 
                through equally between part A and this part;'';
            (3) by striking ``and'' at the end of paragraph (11);
            (4) by striking the period at the end of paragraph (12) and 
        inserting ``; and''; and
            (5) by inserting after paragraph (12) the following:
            ``(13) initiate and actively pursue with other Federal 
        agencies, such as the Department of Defense, coordinated 
        efforts on Federal legislation.''.

SEC. 602. TRAINING.

    (a) Federal Training Assistance.--Section 452(a)(7) (42 U.S.C. 
652(a)(7)) is amended by inserting ``and training'' after ``technical 
assistance''.
    (b) State Training Program.--Section 454 (42 U.S.C. 654), as 
amended by sections 211(e), 301(a), 425, and 504 of this Act, is 
amended--
            (1) by striking ``and'' at the end of paragraph (27);
            (2) by striking the period at the end of paragraph (28) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (28) the following:
            ``(29) provide that the State will develop and implement a 
        training program under which training is to be provided not 
        less frequently than annually to all personnel performing 
        functions under the State plan.''.
    (c) Report.--Section 452(a)(10) (42 U.S.C. 652(a)(10)), as amended 
by section 601(2) of this Act, is amended by redesignating 
subparagraphs (I) and (J) as subparagraphs (J) and (K), respectively, 
and by inserting after subparagraph (H) the following:
                    ``(I) the training activities at the Federal and 
                State levels, the training audit, and the amounts 
                expended on training;''.

SEC. 603. STAFFING.

    (a) Methodology.--Not later than 1 year after the date of the 
enactment of this Act, the Secretary of Health and Human Services shall 
develop the methodology to be used to determine the staffing 
requirements of each State program operated under part D of title IV of 
the Social Security Act, including each agency and court involved in 
the program.
    (b) Implementation.--Not later than 2 years after the date of the 
enactment of this Act, each State with a plan approved under part D of 
title IV of the Social Security Act shall--
            (1) use the methodology developed pursuant to subsection 
        (a) to determine the staffing requirements of the State program 
        operated under the plan, including each agency and court 
        involved in the program; and
            (2) staff the program, and each agency and court involved 
        in the program, in accordance with the staffing requirements 
        determined pursuant to paragraph (1).
    (c) Implementation.--The Secretary of Health and Human Services 
shall reduce by 2 percent the amount otherwise payable to a State 
pursuant to section 455(a)(1)(A) of the Social Security Act for any 
calendar quarter ending 2 or more years after the date of the enactment 
of this Act, if the Secretary determines that, during the quarter, the 
State is not in substantial compliance with subsection (b)(2).

SEC. 604. CHILD SUPPORT DEFINITION.

    (a) In General.--Section 452 (42 U.S.C. 652) is amended by adding 
at the end the following:
    ``(j) For purposes of this part, the term `child support' shall 
have the meaning given such term in section 462(b).''.
    (b) Conforming Amendments.--Section 462(b) (42 U.S.C. 662(b)) is 
amended--
            (1) by inserting ``and lump sum'' after ``periodic'', and
            (2) by inserting ``child care,'' after ``clothing,''.

SEC. 605. TECHNICAL CORRECTION TO ERISA DEFINITION OF MEDICAL CHILD 
              SUPPORT ORDER.

    (a) In General.--Section 609(a)(2)(B) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1169(a)(2)(B)) is amended--
            (1) by striking ``issued by a court of competent 
        jurisdiction'';
            (2) by striking the period at the end of clause (ii) and 
        inserting a comma; and
            (3) by adding, after and below clause (ii), the following:
                ``if such judgment, decree, or order (I) is issued by a 
                court of competent jurisdiction or (II) is issued by an 
                administrative adjudicator and has the force and effect 
                of law under applicable State law.''.
    (b) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        take effect on the date of the enactment of this Act.
            (2) Plan amendments not required until january 1, 1995.--
        Any amendment to a plan required to be made by an amendment 
        made by this section shall not be required to be made before 
        the first plan year beginning on or after January 1, 1995, if--
                    (A) during the period after the date before the 
                date of the enactment of this Act and before such first 
                plan year, the plan is operated in accordance with the 
                requirements of the amendments made by this section, 
                and
                    (B) such plan amendment applies retroactively to 
                the period after the date before the date of the 
                enactment of this Act and before such first plan year.
        A plan shall not be treated as failing to be operated in 
        accordance with the provisions of the plan merely because it 
        operates in accordance with this paragraph.

SEC. 606. AUDITS.

    (a) Study.--
            (1) Contract authority.--The Secretary of Health and Human 
        Services shall enter into a contract for a study of the audit 
        process of the Office of Child Support Enforcement to develop 
        criteria and methodology for auditing the activities of State 
        child support enforcement agencies pursuant to part D of title 
        IV of the Social Security Act.
            (2) Design of study.--The study shall be designed to--
                    (A) identify ways to improve the auditing process, 
                including by--
                            (i) reducing the resources required to 
                        perform the audit;
                            (ii) simplifying procedures for States to 
                        follow in obtaining samples;
                            (iii) studying the feasibility of sampling 
                        cases for needed action rather than requiring 
                        sampling plans for each audit criterion; and
                            (iv) a more timely audit period of review; 
                        and
                    (B) develop a penalty process which--
                            (i) focuses on improving the delivery of 
                        child support services and not harming 
                        families;
                            (ii) uses a penalty not tied to any 
                        reduction of funds payable to States under part 
                        A of title IV of the Social Security Act; and
                            (iii) should include the escrowing of funds 
                        withheld as penalties for use by States to 
                        improve their child support programs in a 
                        manner approved by the Secretary of Health and 
                        Human Services.
    (b) Report.--Not later than 90 days after completion of the study 
required by subsection (a), the Secretary of Health and Human Services 
shall submit to the Committee on Ways and Means of the House of 
Representatives and the Committee on Finance of the Senate a report on 
the results of the study.
    (c) Limitation on Cases Included in Audits.--Section 452(a)(4) (42 
U.S.C. 652(a)(4)) is amended--
            (1) by inserting ``(A)'' after ``(4)'';
            (2) by adding ``and'' at the end; and
            (3) by adding after and below the end the following:
            ``(B) notwithstanding subparagraph (A), each audit under 
        subparagraph (A) shall be limited to cases open on the date the 
        audit begins and cases closed within 180 days before such date, 
        unless the Secretary has determined, in accordance with 
        regulations, that there is a need for a longitudinal review of 
        case handling that includes cases that have been closed for 
        more than 180 days;''.

SEC. 607. ESTABLISHMENT OF CHILD SUPPORT ASSURANCE DEMONSTRATION 
              PROJECTS.

    (a) In General.--In order to encourage States to provide a 
guaranteed minimum level of child support for every eligible child not 
receiving such support, the Secretary of Health and Human Services 
(hereafter in this section referred to as the ``Secretary'') shall make 
grants to 4 qualified States to conduct demonstration projects for the 
purpose of establishing or improving a system of assured minimum child 
support payments in accordance with this section.
    (b) Contents of Application.--An application for grants under this 
section shall be submitted by the Governor of a State and shall--
            (1) contain a description of the proposed child support 
        assurance project to be established, implemented, or improved 
        using amounts provided under this section, including the level 
        of the assured benefit to be provided, the specific activities 
        to be undertaken, and the agencies that will be involved;
            (2) specify that the project will be carried out throughout 
        the State;
            (3) estimate the number of children who will be eligible 
        for assured minimum child support payments under the project, 
        and the amounts to which they will be entitled on average as 
        individuals and in the aggregate;
            (4) describe the child support guidelines and review 
        procedures which are in use in the State and any expected 
        modifications;
            (5) contain a commitment by the State to carry out the 
        project during a period of not less than 3 and not more than 5 
        consecutive fiscal years beginning with fiscal year 1996;
            (6) contain assurances that the State--
                    (A) is currently at or above the national median 
                paternity establishment rate (as defined in section 
                452(g)(2) of the Social Security Act),
                    (B) will improve the performance of the agency 
                designated by the State to carry out the requirements 
                under part D of title IV of the Social Security Act by 
                at least 4 percent each year in which the State 
                operates a child support assurance project under this 
                section in--
                            (i) the number of cases in which paternity 
                        is established when required;
                            (ii) the number of cases in which child 
                        support orders are obtained; and
                            (iii) the number of cases with child 
                        support orders in which collections are made; 
                        and
                    (C) to the maximum extent possible under current 
                law, will use Federal, State, and local job training 
                assistance to assist individuals who have been 
                determined to be unable to meet such individuals' child 
                support obligations;
            (7) describe the extent to which multiple agencies, 
        including those responsible for administering the Aid to 
        Families With Dependent Children Program under part A of title 
        IV of the Social Security Act and child support collection, 
        enforcement, and payment under part D of such title, will be 
        involved in the design and operation of the child support 
        assurance project; and
            (8) contain such other information as the Secretary may 
        require by regulation.
    (c) Use of Funds.--A State shall use amounts provided under a grant 
awarded under this section to carry out a child support assurance 
project designed to provide a minimum monthly child support benefit for 
each eligible child in the State to the extent that such minimum child 
support is not paid in a month by the noncustodial parent.
    (d) Requirements.--(1) A child support assurance project funded 
under this section shall provide that--
            (A) any child (as defined in paragraph (2)) with a living 
        noncustodial parent for whom a child support order has been 
        sought (as defined in paragraph (3)) or obtained and any child 
        who meets ``good cause'' criteria for not seeking or enforcing 
        a support order is eligible for the assured child support 
        benefit;
            (B) the assured child support benefit shall be paid 
        promptly to the custodial parent at least once a month and 
        shall be--
                    (i) an amount determined by the State which is--
                            (I) not less than $1,500 per year for the 
                        first child, $1,000 per year for the second 
                        child, and $500 per year for the third and each 
                        subsequent child, and
                            (II) not more than $3,000 per year for the 
                        first child and $1,000 per year for the second 
                        and each subsequent child;
                    (ii) offset and reduced to the extent that the 
                custodial parent receives child support in a month from 
                the noncustodial parent;
                    (iii) indexed and adjusted for inflation; and
                    (iv) in the case of a family of children with 
                multiple noncustodial parents, calculated in the same 
                manner as if all such children were full siblings, but 
                any child support payment from a particular 
                noncustodial parent shall only be applied against the 
                assured child support benefit for the child or children 
                of that particular noncustodial parent;
            (C) for purposes of determining the need of a child or 
        relative and the level of assistance, one-half of the amount 
        received as a child support payment shall be disregarded from 
        income until the total amount of child support and Aid to 
        Families With Dependent Children benefit received under part A 
        of title IV of the Social Security Act equals the Federal 
        poverty level for a family of comparable size;
            (D) in the event that the family as a whole becomes 
        ineligible for Aid to Families With Dependent Children under 
        part A of the Social Security Act due to consideration of 
        assured child support benefits, the continuing eligibility of 
        the caretaker for Aid to Families With Dependent Children under 
        such title shall be calculated without consideration of the 
        assured child support benefit; and
            (E) in order to participate in the child support assurance 
        project, the child's caretaker shall apply for services of the 
        State's child support enforcement program under part D of title 
        IV of the Social Security Act.
    (2) For purposes of this section, the term ``child'' means an 
individual who is of such an age, disability, or educational status as 
to be eligible for child support as provided for by the law of the 
State in which such individual resides.
    (3) For purposes of this section, a child support order shall be 
deemed to have been ``sought'' where an individual has applied for 
services from the State agency designated by the State to carry out the 
requirements of part D of title IV of the Social Security Act or has 
sought a child support order through representation by private or 
public counsel or pro se.
    (e) Consideration and Priority of Applications.--(1) The Secretary 
shall consider all applications received from States desiring to 
conduct demonstration projects under this section and shall approve not 
more than 4 applications which appear likely to contribute 
significantly to the achievement of the purpose of this section. In 
selecting States to conduct demonstration projects under this section, 
the Secretary shall--
            (A) ensure that the applications selected represent a 
        diversity of minimum benefits distributed throughout the range 
        specified in subsection (d)(1)(B)(i);
            (B) consider the geographic dispersion and variation in 
        population of the applicants;
            (C) give priority to States the applications of which 
        demonstrate--
                    (i) significant recent improvements in--
                            (I) establishing paternity and child 
                        support awards,
                            (II) enforcement of child support awards, 
                        and
                            (III) collection of child support payments;
                    (ii) a record of effective automation; and
                    (iii) that efforts will be made to link child 
                support systems with other service delivery systems;
            (D) ensure that the proposed projects will be of a size 
        sufficient to obtain a meaningful measure of the effects of 
        child support assurance;
            (E) give priority, first, to States intending to operate a 
        child support assurance project on a statewide basis, and, 
        second, to States that are committed to phasing in an expansion 
        of such project to the entire State, if interim evaluations 
        suggest such expansion is warranted; and
            (F) ensure that, if feasible, the States selected use a 
        variety of approaches for child support guidelines.
    (2) Of the States selected to participate in the demonstration 
projects conducted under this section, the Secretary shall require, if 
feasible--
            (A) that at least 2 provide intensive integrated social 
        services for low-income participants in the child support 
        assurance project, for the purpose of assisting such 
        participants in improving their employment, housing, health, 
        and educational status; and
            (B) that at least 2 have adopted the Uniform Interstate 
        Family Support Act.
    (f) Duration.--(1) During fiscal year 1995, the Secretary shall 
develop criteria, select the States to participate in the 
demonstration, and plan for the evaluation required under subsection 
(h). The demonstration projects conducted under this section shall 
commence on October 1, 1995, and shall be conducted for not less than 3 
and not more than 5 consecutive fiscal years, except that the Secretary 
may terminate a project before the end of such period if the Secretary 
determines that the State conducting the project is not in substantial 
compliance with the terms of the application approved by the Secretary 
under this section, and the Secretary may authorize the continuation of 
a project if the Secretary determines that the project has been 
successful.
    (g) Cost Savings Recovery.--The Secretary shall develop a 
methodology to identify any State cost savings realized in connection 
with the implementation of a child support assurance project conducted 
under this Act. Any such savings realized as a result of the 
implementation of a child support assurance project shall be utilized 
for child support enforcement improvements or expansions and 
improvements in the Aid to Families With Dependent Children Program 
conducted under part A of title IV of the Social Security Act within 
the participating State.
    (h) Evaluation and Report to Congress.--(1) The Secretary shall 
conduct an evaluation of the effectiveness of the demonstration 
projects funded under this section. The evaluation shall include an 
assessment of the effect of an assured benefit on--
            (A) income from nongovernment sources and the number of 
        hours worked;
            (B) the use and amount of government supports;
            (C) the ability to accumulate resources;
            (D) the well-being of the children, including educational 
        attainment and school behavior; and
            (E) the State's rates of establishing paternity and support 
        orders and of collecting support.
    (2) Three and 5 years after commencement of the demonstration 
projects, the Secretary shall submit an interim and final report based 
on the evaluation to the Committee on Finance and the Committee on 
Labor and Human Resources of the Senate, and the Committee on Ways and 
Means and the Committee on Education and Labor of the House of 
Representatives concerning the effectiveness of the child support 
assurance projects funded under this section.
    (i) State Reports.--The Secretary shall require each State that 
conducts a demonstration project under this section to annually report 
such information on the project's operation as the Secretary may 
require, except that all such information shall be reported according 
to a uniform format prescribed by the Secretary.
    (j) Restrictions on Matching and Use of Funds.--(1) A State 
conducting a demonstration project under this section shall be 
required--
            (A) except as provided in paragraph (2), to provide not 
        less than 20 percent of the total amounts expended in each 
        calendar year of the project to pay the costs associated with 
        the project funded under this section;
            (B) to maintain its level of expenditures for child support 
        collection, enforcement, and payment at the same level, or at a 
        higher level, than such expenditures were prior to such State's 
        participation in a demonstration project provided by this 
        section; and
            (C) to maintain the Aid to Families With Dependent Children 
        benefits provided under part A of title IV of the Social 
        Security Act at the same level, or at a higher level, as the 
        level of such benefits on the date of the enactment of this 
        Act.
    (2) A State participating in a demonstration project under this 
section may provide no less than 10 percent of the total amounts 
expended to pay the costs associated with the project funded under this 
section in years after the first year such project is conducted in a 
State if the State meets the improvements specified in subsection 
(b)(6)(B).
    (k) Coordination With Certain Means-Tested Programs.--For purposes 
of--
            (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;
            (4) sections 221(d)(3), 235, and 236 of the National 
        Housing Act;
            (5) the Food Stamp Act of 1977;
            (6) title XIX of the Social Security Act; and
            (7) child care assistance provided through part A of title 
        IV of the Social Security Act, the Child Care and Development 
        Block Grant, or title XX of the Social Security Act,
any payment made to an individual within the demonstration project area 
for child support up to the amount which an assured child support 
benefit would provide shall not be treated as income and shall not be 
taken into account in determining resources for the month of its 
receipt and the following month.
    (l) Treatment of Child Support Benefit.--Any assured child support 
benefit received by an individual under this Act shall be considered 
child support for purposes of the Internal Revenue Code of 1986.
    (m) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary in each of the fiscal years 
1995, 1996, 1997, 1998, 1999, and 2000 to carry out the purposes of 
this section.

SEC. 608. CHILDREN'S TRUST FUND.

    (a) Designation of Contributions.--
            (1) In general.--Subchapter A of chapter 61 of the Internal 
        Revenue Code of 1986 (relating to returns and records) is 
        amended by adding at the end thereof the following new part:

           ``PART IX--CONTRIBUTIONS TO CHILDREN'S TRUST FUND

                              ``Sec. 6097. Amounts for Children's Trust 
                                        Fund.

``SEC. 6097. AMOUNTS FOR CHILDREN'S TRUST FUND.

    ``Each taxpayer may include with such taxpayer's return of tax 
imposed by chapter 1 for any taxable year a contribution by the 
taxpayer to the Children's Trust Fund.''.
            (2) Clerical amendment.--The table of parts for subchapter 
        A of chapter 61 of the Internal Revenue Code of 1986 is amended 
        by adding at the end thereof the following new item:

                              ``Part IX--Contributions for Children's 
                                        Trust Fund.''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to taxable years beginning after December 31, 1995.
    (b) Establishment of Children's Trust Fund.--
            (1) In general.--Subchapter A of chapter 98 of the Internal 
        Revenue Code of 1986 (relating to the trust fund code) is 
        amended by adding at the end thereof the following new section:

``SEC. 9512. CHILDREN'S TRUST FUND.

    ``(a) Creation of Trust Fund.--There is established in the Treasury 
of the United States a trust fund to be known as the `Children's Trust 
Fund', consisting of such amounts as may be appropriated or credited to 
the Trust Fund as provided in this section or section 9602(b).
    ``(b) Transfer to Children's Trust Fund of Amounts Designated.--
There is hereby appropriated to the Children's Trust Fund amounts 
equivalent to the amounts contributed to such Trust Fund under section 
6097.
    ``(c) Expenditures From Trust Fund.--
            ``(1) In general.--Amounts in the Children's Trust Fund 
        shall be available as provided by appropriation Acts for making 
        expenditures for programs regarding child support and the 
        specific mandates described in part D of title IV of the Social 
        Security Act, especially such mandates established by the 
        amendments made by the Child Support Responsibility Act of 
        1994.
            ``(2) Administrative expenses.--Amounts in the Children's 
        Trust Fund shall be available to pay the administrative 
        expenses of the Department of the Treasury directly allocable 
        to--
                    ``(A) modifying the individual income tax return 
                forms to carry out section 6097,
                    ``(B) carrying out this chapter with respect to 
                such Trust Fund, and
                    ``(C) processing amounts received under section 
                6097 and transferring such amounts to such Trust 
                Fund.''.
            (2) Clerical amendment.--The table of sections for 
        subchapter A of chapter 98 of the Internal Revenue Code of 1986 
        is amended by adding at the end thereof the following new item:

                              ``Sec. 9512. Children's Trust Fund.''.

SEC. 609. STUDY OF REASONS FOR NONPAYMENT OF CHILD SUPPORT; REPORT.

    (a) Study.--The Comptroller General of the United States shall--
            (1) conduct a study of the causes of delinquency in the 
        payment of child support, including the nonpayment of child 
        support by noncustodial parents and failure of custodial 
        parents to cooperate in the collection of child support; and
            (2) if a sufficient number of studies of this matter are 
        available, review the studies.
    (b) Report to the Congress.--Within 1 year after the date of the 
enactment of this Act, the Comptroller General shall submit to the 
Committee on Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate, and to the Office of Child Support 
Enforcement, a report that contains the results of the study required 
by subsection (a), and a consolidated summary of the studies described 
in subsection (a)(2).

SEC. 610. STUDY OF EFFECTIVENESS OF ADMINISTRATIVE PROCESSES; REPORT.

    (a) Study.--The Comptroller General of the United States shall 
conduct a study of the effectiveness of the processing of child support 
and parentage cases in States that use administrative processes as 
compared with States that use judicial or quasi-judicial processes.
    (b) Report to the Congress.--Within 1 year after the date of the 
enactment of this Act, the Comptroller General shall submit to the 
Committee on Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate a report that contains the results 
of the study required by subsection (a).

SEC. 611. COMPENDIUM OF STATE CHILD SUPPORT STATUTES.

    The Office of Child Support Enforcement shall produce and update 
the compendium entitled ``A Guide To State Child Support And Paternity 
Laws'', published by the National Conference of State Legislatures.

SEC. 612. ESTABLISHMENT OF PERMANENT CHILD SUPPORT ADVISORY COMMITTEE.

    (a) In General.--The Office of Child Support Enforcement shall 
establish an advisory committee on child support matters composed of 
Federal and State legislators, State child support officials, and 
representatives of custodial and noncustodial parents.
    (b) Functions.--The advisory committee established pursuant to 
subsection (a) shall--
            (1) provide oversight of the implementation of Federal laws 
        and regulations affecting child support, and the operation of 
        Federal, State, and local child support programs; and
            (2) provide a forum through which child support problems 
        experienced by parents, State agencies, the courts, and the 
        private bar may be identified, and from which recommendations 
        on how to solve such problems may be reported to the Secretary 
        of Health and Human Services and to the Congress.
    (c) Permanency.--Section 14 of the Federal Advisory Committee Act 
(5 U.S.C. App.) shall not apply to the advisory committee established 
pursuant to subsection (a) of this section.

                         TITLE VII--STATE ROLE

SEC. 701. ADVOCATION OF CHILDREN'S ECONOMIC SECURITY.

    Section 454 (42 U.S.C. 654), as amended by sections 211(e), 301(a), 
425, 504, and 602 of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (28);
            (2) by striking the period at the end of paragraph (29) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (29) the following:
            ``(30) provide that the agency administering the plan shall 
        advocate to promote the greatest economic security possible for 
        children, consistent with the ability of any individual who 
        owes child support with respect to the child to provide the 
        support.''.

SEC. 702. DUTIES OF STATE CHILD SUPPORT AGENCIES.

    Section 454 (42 U.S.C. 654), as amended by sections 211(e), 301(a), 
425, 504, 602, and 701 of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (29);
            (2) by striking the period at the end of paragraph (30) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (30) the following:
            ``(31) provide that the agency administering the plan shall 
        provide to each custodial parent--
                    ``(A) a written description of the services 
                available under the plan, and a statement describing 
                the priorities applied in distributing collected child 
                support and the rules governing confidentiality of 
                information in child support matters;
                    ``(B) a statement that at least 30 days before the 
                agency consents to the dismissal of a child support 
                case with prejudice or a reduction of arrearages, the 
                agency must provide notice to the custodial parent at 
                the last known address of the custodial parent;
                    ``(C) written quarterly reports on the status of 
                any case involving the custodial parent;
                    ``(D) a statement that the State is required to 
                provide services under the plan to any custodial parent 
                who is eligible for aid under the State plan approved 
                under part A; and
                    ``(E) a statement that any custodial parent who 
                applies for services under the plan is eligible for 
                such services, and that any application fee for such 
                services is deferred pending determination of the 
                eligibility of the custodial parent for aid under the 
                State plan approved under part A.''.

SEC. 704. ADMINISTRATIVE PROCESS FOR CHANGE OF PAYEE IN IV-D CASES.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 104, 205, 
206, 207, 209, 210, 212, 405, 406(a), 407, 408, 409, 410, 411, 414, 
416, 417, 423, 424, 428, 429, and 502 of this Act, is amended by 
inserting after paragraph (35) the following:
            ``(36) Procedures under which only administrative 
        procedures are required to change the payee under a child 
        support order in a case under this part, if a statement by an 
        official of the State child support enforcement agency is 
        included in the court or administrative file documenting the 
        change.''.

SEC. 705. FINANCIAL INCENTIVES.

    (a) Only Child Support Enforcement Funds Subject to Reduction for 
Substantial Noncompliance.--
            (1) In general.--Subsection (h) of section 403 (42 U.S.C. 
        603(h)) is hereby transferred to section 455 of the Social 
        Security Act, redesignated as subsection (f) of such section 
        455, and amended--
                    (A) in paragraph (1)--
                            (i) by striking ``Act'' and inserting 
                        ``part'';
                            (ii) by striking ``part D'' and inserting 
                        ``this part''; and
                            (iii) by striking ``such part'' and 
                        inserting ``this part''; and
                    (B) in paragraph (3), by striking ``this part'' and 
                inserting ``part A''.
            (2) Conforming amendments.--
                    (A) Section 452(a)(4) (42 U.S.C. 652(a)(4)) is 
                amended by striking ``403(h)'' each place such term 
                appears and inserting ``455(f)''.
                    (B) Subsections (d)(3)(A), (g)(1), and (g)(3)(A) of 
                section 452 (42 U.S.C. 652) are each amended by 
                striking ``403(h)'' and inserting ``455(f)''.
    (b) Payments to States Increased.--
            (1) In general.--Section 455(a) (42 U.S.C. 655(a)) is 
        amended--
                    (A) in paragraph (1)--
                            (i) by striking ``(a)(1)'' and inserting 
                        ``(a)''; and
                            (ii) in subparagraph (A), by striking ``the 
                        percent specified in paragraph (2)'' and 
                        inserting ``90 percent''; and
                            (iii) in each of subparagraphs (B) and (C), 
                        by striking ``(rather than the percentage 
                        specified in subparagraph (A))'';
                    (B) by striking paragraph (2); and
                    (C) by redesignating subparagraphs (A), (B), and 
                (C) of paragraph (1) as paragraphs (1), (2), and (3), 
                respectively.
            (2) Conforming amendments.--Paragraphs (1)(B), (2)(A), and 
        (2)(B) of section 452(d) (42 U.S.C. 652(d)) are each amended by 
        striking ``455(a)(1)(B)'' and inserting ``455(a)(2)''.
    (c) Repeal of Incentive Payments to States.--Section 458 (42 U.S.C. 
658) is hereby repealed.

SEC. 706. AVOIDANCE OF CONFLICTS OF INTEREST.

    Section 454 (42 U.S.C. 654), as amended by sections 211(e), 301(a), 
425, 504, 602, 701, and 702 of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (30);
            (2) by striking the period at the end of paragraph (31) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (31) the following:
            ``(32) provide that the State may not seek to modify a 
        child support order on behalf of a party to the order if the 
        State has provided services under the State plan to another 
        party to the order.''.
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