[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1157 Introduced in House (IH)]

  1st Session
                                H. R. 1157

    To restore families, promote work, protect endangered children, 
  increase personal responsibility, attack welfare dependency, reduce 
         welfare fraud, and improve child support collections.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 8, 1995

  Mr. Archer introduced the following bill; which was referred to the 
   Committee on Ways and Means, and in addition to the Committees on 
   Economic and Educational Opportunities, Commerce, the Judiciary, 
National Security, and Government Reform and Oversight, for a period to 
      be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL


 
    To restore families, promote work, protect endangered children, 
  increase personal responsibility, attack welfare dependency, reduce 
         welfare fraud, and improve child support collections.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Welfare Transformation Act of 
1995''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents of this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
   TITLE I--BLOCK GRANTS FOR TEMPORARY ASSISTANCE FOR NEEDY FAMILIES

Sec. 101. Block grants to States.
Sec. 102. Report on data processing.
Sec. 103. Transfers.
Sec. 104. Conforming amendments to the Social Security Act.
Sec. 105. Conforming amendments to other laws.
Sec. 106. Continued application of current standards under medicaid 
                            program.
Sec. 107. Effective date.
             TITLE II--CHILD PROTECTION BLOCK GRANT PROGRAM

Sec. 201. Establishment of program.
Sec. 202. Conforming amendments.
Sec. 203. Continued application of current standards under medicaid 
                            program.
Sec. 204. Effective date.
               TITLE III--RESTRICTING WELFARE FOR ALIENS

Sec. 301. Statements of national policy concerning welfare and 
                            immigration.
Sec. 302. Ineligibility of aliens for Federal public welfare 
                            assistance.
Sec. 303. Ineligibility of illegal aliens for State and local public 
                            welfare assistance.
Sec. 304. State authority to limit eligibility of other aliens for 
                            State and local public welfare assistance.
Sec. 305. Attribution of sponsor's income and resources to family-
                            sponsored immigrants.
Sec. 306. Requirements for sponsor's affidavit of support.
Sec. 307. Definitions.
Sec. 308. State agencies required to provide information on illegal 
                            aliens to the Immigration and 
                            Naturalization Service.
                 TITLE IV--SUPPLEMENTAL SECURITY INCOME

Sec. 401. Denial of supplemental security income benefits by reason of 
                            disability to drug addicts and alcoholics.
Sec. 402. Supplemental security income benefits for disabled children.
Sec. 403. Examination of mental listings used to determine eligibility 
                            of children for SSI benefits by reason of 
                            disability.
Sec. 404. Limitation on payments to Puerto Rico, the Virgin Islands, 
                            and Guam under programs of aid to the aged, 
                            blind, or disabled.
Sec. 405. Repeal of maintenance of effort requirements applicable to 
                            optional State programs for supplementation 
                            of SSI benefits.
                         TITLE V--CHILD SUPPORT

Sec. 500. References.
Subtitle A--Case Registries, Eligibility for Services, and Distribution 
                              of Payments

Sec. 501. Case registries; State obligation to provide child support 
                            enforcement services.
Sec. 502. Distribution of child support collections.
Sec. 503. Privacy safeguards.
                  Subtitle B--Locate and Case Tracking

Sec. 511. State case registry.
Sec. 512. Collection and disbursement of support payments.
Sec. 513. State Directory of New Hires.
Sec. 514. Amendments concerning income withholding.
Sec. 515. Locator information from interstate networks.
Sec. 516. Expanded Federal Parent Locator Service.
Sec. 517. Collection and use of social security numbers for use in 
                            child support enforcement.
         Subtitle C--Streamlining and Uniformity of Procedures

Sec. 521. Adoption of uniform State laws.
Sec. 522. Improvements to full faith and credit for child support 
                            orders.
Sec. 523. Administrative enforcement in interstate cases.
Sec. 524. Use of forms in interstate enforcement.
Sec. 525. State laws providing expedited procedures.
                  Subtitle D--Paternity Establishment

Sec. 531. State laws concerning paternity establishment.
Sec. 532. Outreach for voluntary paternity establishment.
Sec. 533. Cooperation by applicants for and recipients of temporary 
                            family assistance.
             Subtitle E--Program Administration and Funding

Sec. 541. Federal matching payments.
Sec. 542. Performance-based incentives and penalties.
Sec. 543. Federal and State reviews and audits.
Sec. 544. Required reporting procedures.
Sec. 545. Automated data processing requirements.
Sec. 546. Technical assistance.
Sec. 547. Reports and data collection by the Secretary.
      Subtitle F--Establishment and Modification of Support Orders

Sec. 551. Simplified process for review and adjustment of child support 
                            orders.
               Subtitle G--Enforcement of Support Orders

Sec. 561. Federal income tax refund offset.
Sec. 562. Authority to collect support from Federal employees.
Sec. 563. Enforcement of child support obligations of members of the 
                            Armed Forces.
Sec. 564. Voiding of fraudulent transfers.
Sec. 565. Sense of the Congress that States should suspend drivers', 
                            business, and occupational licenses of 
                            persons owing past-due child support.
Sec. 566. Work requirement for persons owing past-due child support.
Sec. 567. Definition of support order.
                      Subtitle H--Medical Support

Sec. 571. Technical correction to ERISA definition of medical child 
                            support order.
Subtitle I--Enhancing Responsibility and Opportunity for Nonresidential 
                                Parents

Sec. 581. Grants to States for access and visitation programs.
                    Subtitle J--Effect of Enactment

Sec. 591. Effective dates.

   TITLE I--BLOCK GRANTS FOR TEMPORARY ASSISTANCE FOR NEEDY FAMILIES

SEC. 101. BLOCK GRANTS TO STATES.

    Title IV of the Social Security Act (42 U.S.C. 601 et seq.) is 
amended by striking part A, except sections 403(h) and 417, and 
inserting the following:

  ``PART A--BLOCK GRANTS TO STATES FOR TEMPORARY ASSISTANCE FOR NEEDY 
                                FAMILIES

``SEC. 401. PURPOSE.

    ``The purpose of this part is to increase the flexibility of States 
in operating a program designed to--
            ``(1) provide assistance to needy families so that the 
        children in such families may be cared for in their homes or in 
        the homes of relatives;
            ``(2) end the dependence of needy parents on government 
        benefits by promoting work and marriage; and
            ``(3) discourage out-of-wedlock births.

``SEC. 402. ELIGIBLE STATES; STATE PLAN.

    ``(a) In General.--As used in this part, the term `eligible State' 
means, with respect to a fiscal year, a State that, during the 3-year 
period immediately preceding the fiscal year, has submitted to the 
Secretary a plan that includes the following:
            ``(1) Outline of family assistance program.--A written 
        document that outlines how the State intends to do the 
        following:
                    ``(A) Conduct a program designed to--
                            ``(i) provide cash benefits to needy 
                        families with children; and
                            ``(ii) provide parents of children in such 
                        families with work experience, assistance in 
                        finding employment, and other work preparation 
                        activities and support services that the State 
                        considers appropriate to enable such families 
                        to leave the program and become self-
                        sufficient.
                    ``(B) Require at least 1 parent of a child in any 
                family which has received benefits for more than 24 
                months (whether or not consecutive) under the program 
                to engage in work activities (as defined by the State).
                    ``(C) Ensure that parents receiving assistance 
                under the program engage in work activities in 
                accordance with section 404.
                    ``(D) Treat interstate immigrants, if families 
                including such immigrants are to be treated differently 
                than other families.
                    ``(E) Take such reasonable steps as the State deems 
                necessary to restrict the use and disclosure of 
                information about individuals and families receiving 
                benefits under the program.
                    ``(F) Take actions to reduce the incidence of out-
                of-wedlock births, which may include providing 
                unmarried mothers and unmarried fathers with services 
                which will help them--
                            ``(i) avoid subsequent pregnancies; and
                            ``(ii) provide adequate care to their 
                        children.
                    ``(G) Reduce teenage pregnancy, including (at the 
                option of the State) through the provision of 
                education, counseling, and health services to male and 
                female teenagers.
            ``(2) Certification that the state will operate a child 
        support enforcement program.--A certification by the Governor 
        of the State that, during the fiscal year, the State will 
        operate a child support enforcement program under the State 
        plan approved under part D, in a manner that complies with the 
        requirements of such part.
            ``(3) Certification that the state will operate a child 
        protection program.--A certification by the Governor of the 
        State that, during the fiscal year, the State will operate a 
        child protection program in accordance with part B, which 
        includes a foster care program and an adoption assistance 
        program.
    ``(b) Determinations.--The Secretary shall determine whether a plan 
submitted pursuant to subsection (a) contains the material required by 
subsection (a).

``SEC. 403. PAYMENTS TO STATES.

    ``(a) Entitlements.--
            ``(1) Grants for family assistance.--
                    ``(A) In general.--Each eligible State shall be 
                entitled to receive from the Secretary for each fiscal 
                year specified in subsection (b)(1) a grant in an 
                amount equal to the State share of the family 
                assistance amount for the fiscal year.
                    ``(B) Grant increased to reward states that reduce 
                out-of-wedlock births.--The amount of the grant payable 
                to a State under subparagraph (A) for fiscal year 1998 
                or any succeeding fiscal year shall be increased by--
                            ``(i) 5 percent if the illegitimacy ratio 
                        of the State for the fiscal year is at least 1 
                        percentage point lower than the illegitimacy 
                        ratio of the State for fiscal year 1995; or
                            ``(ii) 10 percent if the illegitimacy ratio 
                        of the State for the fiscal year is at least 2 
                        percentage points lower than the illegitimacy 
                        ratio of the State for fiscal year 1995.
            ``(2) Supplemental grants to adjust for population 
        increases.--In addition to any grant under paragraph (1), each 
        eligible State shall be entitled to receive from the Secretary 
        for each of fiscal years 1997, 1998, 1999, and 2000, a grant in 
        an amount equal to the State proportion of $100,000,000.
    ``(b) Definitions.--As used in this section:
            ``(1) Family assistance amount.--The term `family 
        assistance amount' means $15,355,000,000 for each of fiscal 
        years 1996, 1997, 1998, 1999, and 2000.
            ``(2) State share.--The term `State share' means--
                    ``(A) the amount paid to the State under section 
                403 of this title (as in effect before October 1, 1995) 
                for fiscal year 1994 (other than with respect to 
                amounts expended for child care under subsection (g) or 
                (i) of such section); divided by
                    ``(B) the total amount paid to all of the States 
                under such section for fiscal year 1994 (other than 
                with respect to amounts expended for such child care).
            ``(3) Illegitimacy ratio.--The term `illegitimacy ratio' 
        means, with respect to a State and a fiscal year--
                    ``(A) the sum of--
                            ``(i) the number of out-of-wedlock births 
                        that occurred in the State during the most 
                        recent fiscal year for which such information 
                        is available; and
                            ``(ii) the amount (if any) by which the 
                        number of abortions performed in the State 
                        during the most recent fiscal year for which 
                        such information is available exceeds the 
                        number of abortions performed in the State 
                        during the fiscal year that immediately 
                        precedes such most recent fiscal year; divided 
                        by
                    ``(B) the number of births that occurred in the 
                State during the most recent fiscal year for which such 
                information is available.
            ``(4) State proportion.--The term `State proportion' means, 
        with respect to a fiscal year, the amount that bears the same 
        ratio to the amount specified in subsection (a)(2) as the 
        increase (if any) in the population of the State for the most 
        recent fiscal year for which such information is available over 
        the population of the State for the fiscal year that 
        immediately precedes such most recent fiscal year bears to the 
        total increase in the population of all States which have such 
        an increase in population, as determined by the Secretary using 
        data from the Bureau of the Census.
            ``(5) Fiscal year.--The term `fiscal year' means any 12-
        month period ending on September 30 of a calendar year.
            ``(6) State.--The term `State' includes the several States, 
        the District of Columbia, the Commonwealth of Puerto Rico, the 
        United States Virgin Islands, Guam, and American Samoa.
    ``(c) Use of Grant.--
            ``(1) In general.--A State to which a grant is made under 
        this section may use the grant in any manner that is reasonably 
        calculated to accomplish the purpose of this part, subject to 
        this part, including to provide noncash assistance to mothers 
        who have not attained 18 years of age and their children and to 
        provide low income households with assistance in meeting home 
        heating and cooling costs.
            ``(2) Authority to treat interstate immigrants under rules 
        of former state.--A State to which a grant is made under this 
        section may apply to a family the rules of the program operated 
        under this part of another State if the family has moved to the 
        State from the other State and has resided in the State for 
        less than 12 months.
            ``(3) Authority to use portion of grant for other 
        purposes.--
                    ``(A) In general.--A State may use not more than 30 
                percent of the amount of the grant made to the State 
                under this section for a fiscal year to carry out a 
                State program pursuant to any or all of the following 
                provisions of law:
                            ``(i) Part B of this title.
                            ``(ii) Title XX of this Act.
                            ``(iv) Any provision of law, enacted into 
                        law during the 104th Congress, under which 
                        grants are made to States for food and 
                        nutrition.
                            ``(iv) The Child Care and Development Block 
                        Grant Act of 1990.
                    ``(B) Applicable rules.--Any amount paid to the 
                State under this part that is used to carry out a State 
                program pursuant to a provision of law specified in 
                subparagraph (A) shall not be subject to the 
                requirements of this part, but shall be subject to the 
                requirements that apply to Federal funds provided 
                directly under the provision of law to carry out the 
                program.
            ``(4) Authority to reserve certain amounts for emergency 
        benefits.--
                    ``(A) In general.--A State may reserve amounts paid 
                to the State under this section for any fiscal year for 
                the purpose of providing emergency assistance under the 
                State program operated under this part.
                    ``(B) Authority to use excess reserves for any 
                purpose.--During a fiscal year, a State may use for any 
                purpose deemed appropriate by the State amounts held in 
                reserve under subparagraph (A) to the extent exceeding 
                120 percent of the amount of the grant payable to the 
                State under this section for the fiscal year.
            ``(5) Implementation of electronic benefit transfer 
        system.--A State to which a grant is made under this section is 
        encouraged to implement an electronic benefit transfer system 
        for providing assistance under the State program funded under 
        this part, and may use the grant for such purpose.
    ``(d) Timing of Payments.--The Secretary shall pay each grant 
payable to a State under this section in quarterly installments.
    ``(e) Penalties.--
            ``(1) For use of grant in violation of this part.--
                    ``(A) In general.--If an audit conducted pursuant 
                to chapter 75 of title 31, United States Code, finds 
                that an amount paid to a State under this section for a 
                fiscal year has been used in violation of this part, 
                then the Secretary shall reduce the amount of the grant 
                otherwise payable to the State under this section for 
                the immediately succeeding fiscal year by the amount so 
                used.
                    ``(B) Limitation on amount of penalty.--In carrying 
                out subparagraph (A), the Secretary shall not reduce 
                any quarterly payment by more than 25 percent.
                    ``(C) Carryforward of unrecovered penalties.--To 
                the extent that subparagraph (B) prevents the Secretary 
                from recovering during a fiscal year the full amount of 
                a penalty imposed on a State under subparagraph (A) for 
                a prior fiscal year, the Secretary shall apply 
                subparagraph (A) to the grant otherwise payable to the 
                State under this section for the immediately succeeding 
                fiscal year.
            ``(2) For failure to submit required report.--
                    ``(A) In general.--If the Secretary determines that 
                a State has not, within 6 months after the end of a 
                fiscal year, submitted the report required by section 
                406 for the fiscal year, the Secretary shall reduce by 
                3 percent the amount of the grant that would (in the 
                absence of this subsection, subsection (a)(1)(B) of 
                this section, and section 404(c)(2)) be payable to the 
                State under subsection (a)(1)(A) for the immediately 
                succeeding fiscal year.
                    ``(B) Rescission of penalty.--The Secretary shall 
                rescind a penalty imposed on a State under subparagraph 
                (A) with respect to a report for a fiscal year if the 
                State submits the report before the end of the 
                immediately succeeding fiscal year.
                    ``(C) For failure to participate in the income and 
                eligibility verification system.--If the Secretary 
                determines that a State program funded under this part 
                is not participating during a fiscal year in the income 
                and eligibility verification system required by section 
                1137, the Secretary shall reduce by 1 percent the 
                amount of the grant that would (in the absence of this 
                subsection, subsection (a)(1)(B) of this section, and 
                section 404(c)(2)) be payable to the State under 
                subsection (a)(1)(A) for the fiscal year.
    ``(f) Limitation on Federal Authority.--The Secretary may not 
regulate the conduct of States under this part or enforce any provision 
of this part, except to the extent expressly provided in this part.
    ``(g) Federal Rainy Day Fund.--
            ``(1) Establishment.--There is hereby established in the 
        Treasury of the United States a revolving loan fund which shall 
        be known as the `Federal Rainy Day Fund'.
            ``(2) Deposits into fund.--
                    ``(A) Appropriation.--Out of any money in the 
                Treasury of the United States not otherwise 
                appropriated, $1,000,000,000 are hereby appropriated 
                for fiscal year 1996 for payment to the Federal Rainy 
                Day Fund.
                    ``(B) Loan repayments.--The Secretary shall deposit 
                into the fund any principal or interest payment 
                received with respect to a loan made under this 
                subsection.
            ``(3) Availability.--Amounts in the fund are authorized to 
        remain available without fiscal year limitation for the purpose 
        of making loans and receiving payments of principal and 
        interest on such loans, in accordance with this subsection.
            ``(4) Use of fund.--
                    ``(A) Loans to qualified states.--
                            ``(i) In general.--The Secretary shall make 
                        loans from the fund to any qualified State for 
                        a period to maturity of not more than 3 years.
                            ``(ii) Rate of interest.--The Secretary 
                        shall charge and collect interest on any loan 
                        made under clause (i) at a rate equal to the 
                        current average market yield on outstanding 
                        marketable obligations of the United States 
                        with remaining periods to maturity comparable 
                        to the period to maturity of the loan.
                            ``(iii) Maximum loan.--The amount of any 
                        loan made to a State under clause (i) during a 
                        fiscal year shall not exceed the lesser of--
                                    ``(I) 50 percent of the amount of 
                                the grant payable to the State under 
                                this section for the fiscal year; or
                                    ``(II) $100,000,000.
                    ``(B) Qualified state defined.--A State is a 
                qualified State for purposes of subparagraph (A) if the 
                unemployment rate of the State (as determined by the 
                Bureau of Labor Statistics) for the most recent 3-month 
                period for which such information is available is--
                            ``(i) more than 6.5 percent; and
                            ``(ii) at least 110 percent of such rate 
                        for the corresponding 3-month period in either 
                        of the 2 immediately preceding calendar years.

``SEC. 404. MANDATORY WORK REQUIREMENTS.

    ``(a) Participation Rate Requirements.--
            ``(1) Requirement applicable to 1-parent families receiving 
        assistance.--
                    ``(A) In general.--A State to which a grant is made 
                under section 403 for a fiscal year shall achieve the 
                minimum participation rate specified in the following 
                table for the fiscal year with respect to 1-parent 
                families receiving assistance under the State program 
                funded under this part:

                                                            The minimum
                ``If the fiscal year is:         participation rate is:
                    1996.......................................       4
                    1997.......................................       4
                    1998.......................................       8
                    1999.......................................      12
                    2000.......................................      17
                    2001.......................................      29
                    2002.......................................      40
                    2003 or thereafter.........................     50.
                    ``(B) Pro rata reduction of participation rate for 
                caseload reductions.--The minimum participation rate 
                otherwise required by subparagraph (A) for a fiscal 
                year shall be reduced by a percentage equal to the 
                percentage (if any) by which the number of families 
                receiving assistance during the fiscal year under the 
                State program funded under this part is less than the 
                number of families that received aid under the State 
                plan approved under part A of this title (as in effect 
                before the effective date of this part) during the 
                fiscal year immediately preceding such effective date.
                    ``(C) Participation rate.--For purposes of this 
                paragraph:
                            ``(i) Average monthly rate.--The 
                        participation rate of a State for a fiscal year 
                        is the average of the participation rates of 
                        the State for each month in the fiscal year.
                            ``(ii) Monthly participation rates.--The 
                        participation rate of a State for a month is--
                                    ``(I) the number of 1-parent 
                                families which receive cash assistance 
                                under the State program funded under 
                                this part and in which the parent is 
                                engaged in work activities for the 
                                month; divided by
                                    ``(II) the total number of 1-parent 
                                families which receive cash assistance 
                                under the State program funded under 
                                this part during the month and in which 
                                the parent has attained 18 years of 
                                age.
            ``(2) Requirement applicable to 2-parent families.--
                    ``(A) In general.--A State to which a grant is made 
                under section 403 for a fiscal year shall achieve the 
                minimum participation rate specified in the following 
                table for the fiscal year with respect to 2-parent 
                families receiving assistance under the State program 
                funded under this part:
                                                            The minimum
                ``If the fiscal year is:         participation rate is:
                    1996.......................................      50
                    1997.......................................      50
                    1998 or thereafter.........................     90.
                    ``(B) Participation rate.--For purposes of this 
                paragraph:
                            ``(i) Average monthly rate.--The 
                        participation rate of a State for a fiscal year 
                        is the average of the participation rates of 
                        the State for each month in the fiscal year.
                            ``(ii) Monthly participation rates.--The 
                        participation rate of a State for a month is--
                                    ``(I) the number of 2-parent 
                                families which receive cash assistance 
                                under the State program funded under 
                                this part and in which at least 1 
                                parent is engaged in work activities 
                                for the month; divided by
                                    ``(II) the total number of 2-parent 
                                families receiving cash assistance 
                                under the State program funded under 
                                this part during the month.
    ``(b) Definitions.--As used in this section:
            ``(1) Engage in work activities.--The term `engage in work 
        activities' means, with respect to parent and a month, to make 
        progress in work activities for at least the minimum average 
        number of hours per week specified in the following table 
        during the month, not fewer than 20 hours per week of which are 
        attributable to an activity described in subparagraph (A), (B), 
        (C), or (D) of paragraph (2):
``If the month is in fiscal year:   The minimum average number of hours 
                                                           per week is:
    1996.......................................................      20
    1997.......................................................      20
    1998.......................................................      20
    1999.......................................................      25
    2000.......................................................      30
    2001.......................................................      30
    2002.......................................................      35
    2003 or thereafter.........................................     35.
            ``(2) Work activities.--The term `work activities' means--
                    ``(A) unsubsidized employment;
                    ``(B) subsidized employment;
                    ``(C) subsidized public sector employment or work 
                experience;
                    ``(D) on-the-job training;
                    ``(E) job search;
                    ``(F) education and training directly related to 
                employment;
                    ``(G) job skills training directly related to 
                employment; or
                    ``(H) at the option of the State, satisfactory 
                attendance at secondary school, in the case of a parent 
                who has not completed secondary school and who has not 
                attained 20 years of age.
            ``(3) Fiscal year.--The term `fiscal year' means any 12-
        month period ending on September 30 of a calendar year.
    ``(c) Penalties.--
            ``(1) Against individuals.--
                    ``(A) Applicable to 1-parent families.--A State to 
                which a grant is made under section 403 for a fiscal 
                year shall ensure that the amount of cash assistance 
                paid under the State program funded under this part to 
                a recipient of assistance under the program who is the 
                parent in a 1-parent family and who refuses to engage 
                in work activities required under this section shall be 
                less than the amount of cash assistance that would 
                otherwise be paid to the recipient under the program, 
                subject to such good cause and other exceptions as the 
                State may establish.
                    ``(B) Applicable to 2-parent families.--A State to 
                which a grant is made under section 403 for a fiscal 
                year shall reduce the amount of cash assistance 
                otherwise payable to a 2-parent family for a month 
                under the State program funded under this part with 
                respect to a parent in the family who is not engaged in 
                work activities required under this section, pro rata 
                (or more, at the option of the State) with respect to 
                any period during the month for which the parent is not 
                so engaged.
            ``(2) Against states.--If the Secretary determines that a 
        State to which a grant is made under section 403 for a fiscal 
        year has failed to comply with subsection (a) of this section 
        for the fiscal year, the Secretary shall reduce by not more 
        than 5 percent the amount of the grant that would (in the 
        absence of this paragraph and subsections (a)(1)(B) and (e) of 
        section 403) be payable to the State under section 403(a)(1)(A) 
        for the immediately succeeding fiscal year.
    ``(d) Rule of Interpretation.--This section shall not be construed 
to prohibit a State from offering recipients of assistance under the 
State program funded under this part an opportunity to participate in 
an education or training program before requiring the recipients to 
work or engage in a work program.
    ``(e) Sense of the Congress That States Should Impose Certain 
Requirements on Noncustodial, Nonsupporting Minor Parents.--It is the 
sense of the Congress that the States should require noncustodial, 
nonsupporting parents who have not attained 18 years of age to fulfill 
community work obligations and attend appropriate parenting or money 
management classes after school.
    ``(f) Research.--The Secretary shall conduct research on the costs 
and benefits of State activities under this section.
    ``(g) Evaluation of Innovative Approaches to Employing Recipients 
of Assistance.--The Secretary shall evaluate innovative approaches to 
employing recipients of assistance under State programs funded under 
this part.
    ``(h) Annual Ranking of States and Review of Most and Least 
Successful Work Programs.--
            ``(1) Annual ranking of states.--The Secretary shall rank 
        the States to which grants are paid under section 403 in the 
        order of their success in moving recipients of assistance under 
        the State program funded under this part into long-term private 
        sector jobs.
            ``(2) Annual review of most and least successful work 
        programs.--The Secretary shall review the programs of the 3 
        States most recently ranked highest under paragraph (1) and the 
        3 States most recently ranked lowest under paragraph (1) that 
        provide parents with work experience, assistance in finding 
        employment, and other work preparation activities and support 
        services to enable the families of such parents to leave the 
        program and become self-sufficient.

``SEC. 405. PROHIBITIONS.

    ``(a) In General.--
            ``(1) No assistance for families without a minor child.--A 
        State to which a grant is made under section 403 may not use 
        any part of the grant to provide assistance to a family, unless 
        the family includes a minor child.
            ``(2) Certain payments not to be disregarded in determining 
        the amount of assistance to be provided to a family.--
                    ``(A) Income security payments.--If a State to 
                which a grant is made under section 403 uses any part 
                of the grant to provide assistance for any individual 
                who is receiving a payment under a State plan for old-
                age assistance approved under section 2, a State 
                program funded under part B that provides cash payments 
                for foster care, or the supplemental security income 
                program under title XVI (other than service benefits 
                provided through the use of a grant made under part C 
                of such title), then the State may not disregard the 
                payment in determining the amount of assistance to be 
                provided to the family of which the individual is a 
                member under the State program funded under this part.
                    ``(B) Certain support payments.--A State to which a 
                grant is made under section 403 may not disregard an 
                amount distributed to a family under section 
                457(a)(1)(A) in determining the income of the family 
                for purposes of eligibility for assistance under the 
                State program funded under this part.
            ``(3) No assistance for certain aliens.--Notwithstanding 
        subsection (c)(1), a State to which a grant is made under 
        section 403 may not use any part of the grant to provide 
        assistance for an individual who is not a citizen or national 
        of the United States, unless--
                    ``(A)(i) the individual is admitted to the United 
                States as a refugee under section 207 of the 
                Immigration and Nationality Act; and
                    ``(ii) 5 years has elapsed since the date the 
                individual arrived in the United States;
                    ``(B) the individual--
                            ``(i) is lawfully admitted to the United 
                        States for permanent residence;
                            ``(ii) has attained 75 years of age; and
                            ``(iii) has resided in the United States 
                        for at least 5 years; or
                    ``(C) the individual is honorably discharged from 
                the Armed Forces of the United States.
            ``(4) No assistance for out-of-wedlock births to minors.--
                    ``(A) General rule.--a State to which a grant is 
                made under section 403 may not use any part of the 
                grant to provide cash benefits for a child born out-of-
                wedlock to an individual who has not attained 18 years 
                of age, or for the individual, until the individual 
                attains such age.
                    ``(B) Exception for rape or incest.--Subparagraph 
                (A) shall not apply with respect to a child who is born 
                as a result of rape or incest.
            ``(5) No additional assistance for children born to 
        families receiving assistance.--
                    ``(A) General rule.--A State to which a grant is 
                made under section 403 may not use any part of the 
                grant to provide cash benefits for a minor child who is 
                born to--
                            ``(i) a recipient of benefits under the 
                        program operated under this part; or
                            ``(ii) a person who received such benefits 
                        at any time during the 10-month period ending 
                        with the birth of the child.
                    ``(B) Exception for rape or incest.--Subparagraph 
                (A) shall not apply with respect to a child who is born 
                as a result of rape or incest.
            ``(6) No assistance for more than 5 years.--
                    ``(A) In general.--A State to which a grant is made 
                under section 403 may not use any part of the grant to 
                provide cash benefits for the family of an individual 
                who, after attaining 18 years of age, has received 
                benefits under the program operated under this part for 
                60 months (whether or not consecutive) after the 
                effective date of this part, except as provided under 
                subparagraph (B).
                    ``(B) Hardship exception.--
                            ``(i) In general.--The State may exempt a 
                        family from the application of subparagraph (A) 
                        by reason of hardship.
                            ``(ii) Limitation.--The number of families 
                        with respect to which an exemption made by a 
                        State under clause (i) is in effect shall not 
                        exceed 10 percent of the number of families to 
                        which the State is providing assistance under 
                        the program operated under this part.
            ``(7) No assistance for families not cooperating in 
        paternity establishment.--Notwithstanding subsection (c)(1), a 
        State to which a grant is made under section 403 may not use 
        any part of the grant to provide assistance to a family that 
        includes an individual whom the agency responsible for 
        administering the State plan approved under part D determines 
        is not cooperating with the State in establishing the paternity 
        of any child of the individual.
            ``(8) No assistance for families not assigning support 
        rights to the state.--Notwithstanding subsection (c)(1), a 
        State to which a grant is made under section 403 may not use 
        any part of the grant to provide assistance to a family that 
        includes an individual who has not assigned to the State any 
        rights the individual may have (on behalf of the individual or 
        of any other person for whom the individual has applied for or 
        is receiving such assistance) to support from any other person 
        for any period for which the individual receives such 
        assistance.
            ``(9) Withholding of portion of assistance for families 
        which include a child whose paternity is not established.--
                    ``(A) In general.--A State to which a grant is made 
                under section 403 may not fail to--
                            ``(i) withhold assistance under the State 
                        program funded under this part from a family 
                        which includes a child whose paternity is not 
                        established, in an amount equal to $50 or 15 
                        percent of the amount of the assistance that 
                        would (in the absence of this paragraph) be 
                        provided to the family with respect to the 
                        child, whichever the State elects; or
                            ``(ii) provide to the family the total 
                        amount of assistance so withheld once the 
                        paternity of the child is established, if the 
                        family is then eligible for such assistance.
            ``(B) Exception for rape or incest.--Subparagraph (A) shall 
        not apply with respect to a child who is born as a result of 
        rape or incest.
            ``(10) Denial of assistance for 10 years to a person 
        convicted of fraudulently misrepresenting residence to a 
        welfare program.--A State to which a grant is made under 
        section 403 may not use any part of the grant to provide 
        assistance to an individual during the 10-year period that 
        begins with the date the individual is convicted in Federal or 
        State court of making a fraudulent statement or representation 
        with respect to the place of residence of the person in order 
        to receive benefits or services under 2 or more programs that 
        are funded under this part.
    ``(b) Minor Child Defined.--As used in subsection (a), the term 
`minor child' means an individual--
            ``(1) who has not attained 18 years of age; or
            ``(2) who--
                    ``(A) has not attained 19 years of age; and
                    ``(B) is a full-time student in a secondary school 
                (or in the equivalent level of vocational or technical 
                training).

``SEC. 406. DATA COLLECTION AND REPORTING.

    ``(a) In General.--Each State to which a grant is made under 
section 403 for a fiscal year shall, not later than 6 months after the 
end of the fiscal year, transmit to the Secretary the following 
aggregate information on families to which assistance was provided 
during the fiscal year under the State program operated under this 
part:
            ``(1) The number of adults in the families.
            ``(2) The number of children in the families and the 
        average age of the children.
            ``(3) The basis of the eligibility of the families for such 
        assistance.
            ``(4) In the case of 2-parent families, the number with 
        unemployed parents.
            ``(5) The number of 1-parent families in which the parent 
        is a widow or widower, is divorced, is separated, or has never 
        married.
            ``(6) The age, race, educational attainment, and employment 
        status of the parents in the families.
            ``(7) The number of the families with earned income, and 
        the average monthly earnings of the families.
            ``(8) The income of the families from the program.
            ``(9) Whether, at the time of application for assistance 
        under the program, the families or any member of the families 
        receives benefits under any of the following:
                    ``(A) Any housing program.
                    ``(B) The food stamp program under the Food Stamp 
                Act of 1977.
                    ``(C) The Head Start programs carried out under the 
                Head Start Act.
                    ``(D) Any job training program.
            ``(10) The number of months, since the most recent 
        application for assistance under the program, for which such 
        assistance has been provided to the families.
            ``(11) The total number of months for which assistance has 
        been provided to the families under the program.
            ``(12) Any other data necessary to indicate whether the 
        State is in compliance with the plan most recently submitted by 
        the State pursuant to section 402.
    ``(b) Authority of States to Use Estimates.--A State may comply 
with the requirement to provide precise numerical information described 
in subsection (a) by submitting an estimate which is obtained through 
the use of scientifically acceptable sampling methods.
    ``(c) Report on Use of Federal Funds to Cover Administrative Costs 
and Overhead.--The report required by subsection (a) for a fiscal year 
shall include a statement of the percentage of the funds paid to the 
State under this part for the fiscal year that are used to cover 
administrative costs or overhead.
    ``(d) Report on State Expenditures on Programs for Needy 
Families.--The report required by subsection (a) for a fiscal year 
shall include a statement of the total amount expended by the State 
during the fiscal year on programs for needy families.
    ``(e) Report on Noncustodial Parents Participating in Work 
Activities.--The report required by subsection (a) for a fiscal year 
shall include the number of noncustodial parents in the State who 
participated in work activities (as defined in section 404(b)(1)) 
during the fiscal year.

``SEC. 407. STUDY BY THE CENSUS BUREAU.

    ``(a) In General.--The Bureau of the Census shall expand the Survey 
of Income and Program Participation as necessary to obtain such 
information as will enable interested persons to evaluate the impact of 
the amendments made by title I of the Welfare Transformation Act of 
1995 on a random national sample of recipients of assistance under 
State programs funded under this part and (as appropriate) other low 
income families, and in doing so, shall pay particular attention to the 
issues of out-of-wedlock birth, welfare dependency, the beginning and 
end of welfare spells, and the causes of repeat welfare spells.
    ``(b) Appropriation.--Out of any money in the Treasury of the 
United States not otherwise appropriated, the Secretary of the Treasury 
shall pay to the Bureau of the Census $10,000,000 for each of fiscal 
years 1996, 1997, 1998, 1999, and 2000 to carry out subsection (a).''.

SEC. 102. REPORT ON DATA PROCESSING.

    (a) In General.--Within 6 months after the date of the enactment of 
this Act, the Secretary of Health and Human Services shall prepare and 
submit to the Congress a report on--
            (1) the status of the automated data processing systems 
        operated by the States to assist management in the 
        administration of State programs under part A of title IV of 
        the Social Security Act (whether in effect before or after 
        October 1, 1995); and
            (2) what would be required to establish a system capable 
        of--
                    (A) tracking participants in public programs over 
                time; and
                    (B) checking case records of the States to 
                determine whether individuals are participating in 
                public programs of 2 or more States.
    (b) Preferred Contents.--The report required by subsection (a) 
should include--
            (1) a plan for building on the automated data processing 
        systems of the States to establish a system with the 
        capabilities described in subsection (a)(2); and
            (2) an estimate of the amount of time required to establish 
        such a system and of the cost of establishing such a system.

SEC. 103. TRANSFERS.

    (a) Child Support Review Penalties.--
            (1) Transfer of provision.--Section 403 of the Social 
        Security Act, as added by the amendment made by section 101 of 
        this Act, is amended by adding at the end subsection (h) of 
        section 403, as in effect immediately before the effective date 
        of this title.
            (2) Conforming amendment.--Section 403(h)(3) of such Act, 
        as in effect pursuant to paragraph (1) of this subsection, is 
        amended by striking ``, section 402(a)(27),''.
    (b) Assistant Secretary for Family Support.--
            (1) Redesignation of provision.--Section 417 of such Act 
        (42 U.S.C. 617), as in effect immediately before the effective 
        date of this title, is amended by striking the following:

               ``assistant secretary for family support''

    ``Sec. 417.''
        and inserting the following:

``SEC. 408. ASSISTANT SECRETARY FOR FAMILY SUPPORT.''.

            (2) Transfer of provision.--Part A of title IV of such Act, 
        as added by the amendment made by section 101 of this Act, is 
        amended by adding at the end the section amended by paragraph 
        (1) of this subsection.
            (3) Conforming amendment.--Section 408 of such Act, as 
        added by paragraph (2) of this subsection is amended by 
        striking ``, part D, and part F'' and inserting ``and part D''.

SEC. 104. CONFORMING AMENDMENTS TO THE SOCIAL SECURITY ACT.

    (a) Amendments to Title II.--
            (1) Section 205(c)(2)(C)(vi) of the Social Security Act (42 
        U.S.C. 405(c)(2)(C)(vi)), as so redesignated by section 
        321(a)(9)(B) of the Social Security Independence and Program 
        Improvements Act of 1994, is amended--
                    (A) by inserting ``an agency administering a 
                program funded under part A of title IV or'' before 
                ``an agency operating''; and
                    (B) by striking ``A or D of title IV of this Act'' 
                and inserting ``D of such title''.
            (2) Section 228(d)(1) of such Act (42 U.S.C. 428(d)(1)) is 
        amended by inserting ``under a State program funded under'' 
        before ``part A of title IV''.
    (b) Amendments to Part D of Title IV.--
            (1) Section 451 of such Act (42 U.S.C. 651) is amended by 
        striking ``aid'' and inserting ``assistance under a State 
        program funded''.
            (2) Section 452(a)(10)(C) of such Act (42 U.S.C. 
        652(a)(10)(C)) is amended--
                    (A) by striking ``aid to families with dependent 
                children'' and inserting ``assistance under a State 
                program funded under part A'';
                    (B) by striking ``such aid'' and inserting ``such 
                assistance''; and
                    (C) by striking ``under section 402(a)(26)'' and 
                inserting ``pursuant to section 405(a)(8)''.
            (3) Section 452(a)(10)(F) of such Act (42 U.S.C. 
        652(a)(10)(F)) is amended--
                    (A) by striking ``aid under a State plan approved'' 
                and inserting ``assistance under a State program 
                funded''; and
                    (B) by striking ``in accordance with the standards 
                referred to in section 402(a)(26)(B)(ii)'' and 
                inserting ``by the State''.
            (4) Section 452(a) of such Act (42 U.S.C. 652(a)) is 
        amended in the last sentence by striking ``plan approved'' and 
        inserting ``program funded''.
            (5) Section 452(b) of such Act (42 U.S.C. 652(b)) is 
        amended in the last sentence by striking ``plan approved under 
        part A'' and inserting ``program funded under part A''.
            (6) Section 452(d)(3)(B)(i) of such Act (42 U.S.C. 
        652(d)(3)(B)(i)) is amended by striking ``1115(c)'' and 
        inserting ``1115(b)''.
            (7) Section 452(g)(2)(A)(ii)(I) of such Act (42 U.S.C. 
        652(g)(2)(A)(ii)(I)) is amended--
                    (A) by inserting ``assistance is being provided 
                under the State program funded under part A or'' before 
                ``aid''; and
                    (B) by striking ``A or''.
            (8) Section 452(g)(2)(A) of such Act (42 U.S.C. 
        652(g)(2)(A)) is amended in the matter following clause (iii) 
        by striking ``aid is being provided under the State's plan 
        approved'' and inserting ``assistance is being provided under 
        the State program funded''.
            (9) Section 452(g)(2) of such Act (42 U.S.C. 652(g)(2)) is 
        amended--
                    (A) by striking ``who is a dependent child by 
                reason of the death of a parent'' and inserting ``with 
                respect to whom assistance is being provided under the 
                State program funded under part A'';
                    (B) by inserting ``by the State agency 
                administering the State plan approved under this part'' 
                after ``found''; and
                    (C) by striking ``under section 402(a)(26)'' and 
                inserting ``pursuant to section 405(a)(8)''.
            (10) Section 452(h) of such Act (42 U.S.C. 652(h)) is 
        amended by striking ``under section 402(a)(26)'' and inserting 
        ``pursuant to section 405(a)(8)''.
            (11) Section 454(5) of such Act (42 U.S.C. 654(5)) is 
        amended--
                    (A) by striking ``under section 402(a)(26)'' and 
                inserting ``pursuant to section 405(a)(8)''; and
                    (B) by striking ``except that this paragraph shall 
                not apply to such payments for any month following the 
                first month in which the amount collected is sufficient 
                to make such family ineligible for assistance under the 
                State plan approved under part A;''.
            (12) Section 454(6)(D) of such Act (42 U.S.C. 654(6)(D)) is 
        amended by striking ``aid under a State plan approved'' and 
        inserting ``assistance under a State program funded''.
            (13) Section 456 of such Act (42 U.S.C. 656) is amended by 
        striking ``under section 402(a)(26)'' each place such term 
        appears and inserting ``pursuant to section 405(a)(8)''.
            (14) Section 464(a)(1) of such Act (42 U.S.C. 664(a)(1)) is 
        amended by striking ``402(a)(26)'' and inserting ``405(a)(8)''.
            (15) Section 466(a)(3)(B) of such Act (42 U.S.C. 
        666(a)(3)(B)) is amended by striking ``402(a)(26)'' and 
        inserting ``405(a)(8)''.
            (16) Section 466(a)(10)(B)(i) of such Act (42 U.S.C. 
        666(a)(10)(B)(i)) is amended by striking ``under section 
        402(a)(26)'' and inserting ``pursuant to section 405(a)(8)''.
            (17) Section 466(b)(2) of such Act (42 U.S.C. 666(b)(2)) is 
        amended by striking ``aid'' and inserting ``assistance under a 
        State program funded''.
    (c) Repeal of Part F of Title IV.--Part F of title IV of such Act 
(42 U.S.C. 681-687) is hereby repealed.
    (d) Amendment to Title X.--Section 1002(a)(7) of such Act (42 
U.S.C. 1202(a)(7)) is amended by striking ``aid to families with 
dependent children under the State plan approved under section 402 of 
this Act'' and inserting ``assistance under a State program funded 
under part A of title IV''.
    (e) Amendments to Title XI.--
            (1) Section 1108 of such Act (42 U.S.C. 1308) is amended--
                    (A) by striking subsections (a), (b), (d), and (e); 
                and
                    (B) by striking ``(c)''.
            (2) Section 1109 of such Act (42 U.S.C. 1309) is amended by 
        striking ``or part A of title IV,''.
            (3) Section 1115(a) of such Act (42 U.S.C. 1315(a)) is 
        amended--
                    (A) in the matter preceding paragraph (1), by 
                striking ``A or'';
                    (B) in paragraph (1), by striking ``402,''; and
                    (C) in paragraph (2), by striking ``403,''.
            (4) Section 1116 of such Act (42 U.S.C. 1316) is amended--
                    (A) in each of subsections (a)(1), (d), and (d), by 
                striking ``or part A of title IV,''; and
                    (B) in subsection (a)(3), by striking ``404,'';
            (5) Section 1118 of such Act (42 U.S.C. 1318) is amended--
                    (A) by striking ``403(a),'';
                    (B) by striking ``and part A of title IV,''; and
                    (C) by striking ``and shall, in the case of 
                American Samoa, mean 75 per centum with respect to part 
                A of title IV''.
            (6) Section 1119 of such Act (42 U.S.C. 1319) is amended--
                    (A) by striking ``or part A of title IV''; and
                    (B) by striking ``403(a)''.
            (7) Section 1133(a) of such Act (42 U.S.C. 1320b-3(a)) is 
        amended by striking ``or part A of title IV,''.
            (8) Section 1136 of such Act (42 U.S.C. 1320b-6) is hereby 
        repealed.
            (9) Section 1137 of such Act (42 U.S.C. 1320b-7) is 
        amended--
                    (A) in subsection (b), by striking paragraph (1) 
                and inserting the following:
            ``(1) any State program funded under part A of title IV of 
        this Act;''; and
                    (B) in subsection (d)(2)--
                            (i) by striking ``In this subsection--'' 
                        and all that follows through ``(ii) in'' and 
                        inserting ``In this subsection, in'';
                            (ii) by redesignating subclauses (I), (II), 
                        and (III) as clauses (i), (ii), and (iii); and
                            (iii) by moving such redesignated material 
                        2 ems to the left.
    (g) Amendment to Title XIV.--Section 1402(a)(7) of such Act (42 
U.S.C. 1352(a)(7)) is amended by striking ``aid to families with 
dependent children under the State plan approved under section 402 of 
this Act'' and inserting ``assistance under a State program funded 
under part A of title IV''.
    (h) Amendment to Title XVI as in Effect With Respect to the 
Territories.--Section 1602(a)(11) of such Act, as in effect without 
regard to the amendment made by section 301 of the Social Security 
Amendments of 1972, (42 U.S.C. 1382 note) is amended by striking ``aid 
under the State plan approved'' and inserting ``assistance under a 
State program funded''.
    (i) Amendment to Title XVI as in Effect With Respect to the 
States.--Section 1611(c)(5)(A) of such Act (42 U.S.C. 1382(c)(5)(A)) is 
amended to read as follows: ``(A) a State program funded under part A 
of title IV,''.

SEC. 105. CONFORMING AMENDMENTS TO OTHER LAWS.

    (a) Subsection (b) of section 508 of the Unemployment Compensation 
Amendments of 1976 (42 U.S.C. 603a) is amended to read as follows:
    ``(b) Provision for Reimbursement of Expenses.--For purposes of 
section 455 of the Social Security Act, expenses incurred to reimburse 
State employment offices for furnishing information requested of such 
offices--
            ``(1) pursuant to the third sentence of section 3(a) of the 
        Act entitled `An Act to provide for the establishment of a 
        national employment system and for cooperation with the States 
        in the promotion of such system, and for other purposes', 
        approved June 6, 1933 (29 U.S.C. 49b(a)),
            ``(2) by a State or local agency charged with the duty of 
        carrying a State plan for child support approved under part D 
        of title IV of the Social Security Act,
shall be considered to constitute expenses incurred in the 
administration of such State plan.''.
    (b) Paragraph (9) of section 51(d) of the Internal Revenue Code of 
1986 is amended by striking all that follows ``agency as'' and 
inserting ``being eligible for financial assistance under part A of 
title IV of the Social Security Act and as having continually received 
such financial assistance during the 90-day period which immediately 
precedes the date on which such individual is hired by the employer.''
    (c) Section 9121 of the Omnibus Budget Reconciliation Act of 1987 
(42 U.S.C. 602 note) is hereby repealed.
    (d) Section 9122 of the Omnibus Budget Reconciliation Act of 1987 
(42 U.S.C. 602 note) is hereby repealed.
    (e) Section 221 of the Housing and Urban-Rural Recovery Act of 1983 
(42 U.S.C. 602 note), relating to treatment under AFDC of certain 
rental payments for federally assisted housing, is hereby repealed.
    (f) Section 159 of the Tax Equity and Fiscal Responsibility Act of 
1982 (42 U.S.C. 602 note) is hereby repealed.
    (g) Section 202(d) of the Social Security Amendments of 1967 (81 
Stat. 882; 42 U.S.C. 602 note) is hereby repealed.
    (h) Section 233 of the Social Security Act Amendments of 1994 (42 
U.S.C. 602 note) is hereby repealed.
    (i) Section 903 of the Stewart B. McKinney Homeless Assistance 
Amendments Act of 1988 (42 U.S.C. 11381 note), relating to 
demonstration projects to reduce number of AFDC families in welfare 
hotels, is amended--
            (1) in subsection (a), by striking ``aid to families with 
        dependent children under a State plan approved'' and inserting 
        ``assistance under a State program funded''; and
            (2) in subsection (c), by striking ``aid to families with 
        dependent children in the State under a State plan approved'' 
        and inserting ``assistance in the State under a State program 
        funded''.

SEC. 106. CONTINUED APPLICATION OF CURRENT STANDARDS UNDER MEDICAID 
              PROGRAM.

    (a) In General.--Title XIX of the Social Security Act is amended--
            (1) in section 1931, by inserting ``subject to section 
        1931(a),'' after ``under this title,'' and by redesignating 
        such section as section 1932; and
            (2) by inserting after section 1930 the following new 
        section:

               ``continued application of afdc standards

    ``Sec. 1931. (a) For purposes of applying this title on and after 
October 1, 1995, with respect to a State--
            ``(1) except as provided in paragraph (2), any reference in 
        this title (or other provision of law in relation to the 
        operation of this title) to a provision of part A of title IV 
        of this Act, or a State plan under such part, shall be 
        considered a reference to such provision or plan as in effect 
        as of March 7, 1995, with respect to the State and eligibility 
        for medical assistance under this title shall be determined as 
        if such provision or plan (as in effect as of such date) had 
        remained in effect on and after October 1, 1995; and
            ``(2) any reference in section 1902(a)(5) or 1902(a)(55) to 
        a State plan approved under part A of title IV shall be deemed 
        a reference to a State program funded under such part (as in 
        effect on and after October 1, 1995).
    ``(b) In the case of a waiver of a provision of part A of title IV 
in effect with respect to a State as of March 7, 1995, if the waiver 
affects eligibility of individuals for medical assistance under this 
title, such waiver may continue to be applied, at the option of the 
State, in relation to this title after the date the waiver would 
otherwise expire.''
    (b) Plan Amendment.--Section 1902(a) of such Act (42 U.S.C. 
1396a(a)) is amended--
            (1) by striking ``and'' at the end of paragraph (61),
            (2) by striking the period at the end of paragraph (62) and 
        inserting ``; and'', and
            (3) by inserting after paragraph (62) the following new 
        paragraph:
            ``(63) provide for continuing to administer eligibility 
        standards with respect to individuals who are (or seek to be) 
        eligible for medical assistance based on the application of 
        section 1931.''.
    (c) Conforming Amendments.--(1) Section 1902(c) of such Act (42 
U.S.C. 1396a(c)) is amended by striking ``if--'' and all that follows 
and inserting the following: ``if the State requires individuals 
described in subsection (l)(1) to apply for assistance under the State 
program funded under part A of title IV as a condition of applying for 
or receiving medical assistance under this title.''.
    (2) Section 1903(i) of such Act (42 U.S.C. 1396b(i)) is amended by 
striking paragraph (9).
    (d) Effective Date.--The amendments made by this section shall 
apply to medical assistance furnished for calendar quarters beginning 
on or after October 1, 1995.

SEC. 107. EFFECTIVE DATE.

    (a) In General.--Except as otherwise provided in this title, this 
title and the amendments made by this title shall take effect on 
October 1, 1995.
    (b) Delayed Applicability of Authority To Temporarily Reduce 
Assistance for Certain Families Which Include a Child Whose Paternity 
Is Not Established.--Section 405(a)(9) of the Social Security Act, as 
added by the amendment made by section 101 of this Act, shall not apply 
to individuals who, immediately before the effective date of this 
title, are recipients of aid under a State plan approved under part A 
of title IV of the Social Security Act, until the end of the 1-year 
(or, at the option of the State, 2-year) period that begins with such 
effective date.
    (c) Transition Rule.--The amendments made by this title shall not 
apply with respect to--
            (1) powers, duties, functions, rights, claims, penalties, 
        or obligations applicable to aid or services provided before 
        the effective date of this title under the provisions amended; 
        and
            (2) administrative actions and proceedings commenced before 
        such date, or authorized before such date to be commenced, 
        under such provisions.

             TITLE II--CHILD PROTECTION BLOCK GRANT PROGRAM

SEC. 201. ESTABLISHMENT OF PROGRAM.

    Part B of title IV of the Social Security Act (42 U.S.C. 620-635) 
is amended to read as follows:

    ``PART B--BLOCK GRANTS TO STATES FOR THE PROTECTION OF CHILDREN

``SEC. 421. PURPOSE.

    ``The purpose of this part is to enable eligible States to carry 
out a child protection program to--
            ``(1) identify and assist families at risk of abusing or 
        neglecting their children;
            ``(2) operate a system for receiving reports of abuse or 
        neglect of children;
            ``(3) investigate families reported to abuse or neglect 
        their children;
            ``(4) provide support, treatment, and family preservation 
        services to families which are, or are at risk of, abusing or 
        neglecting their children;
            ``(5) support children who must be removed from or who 
        cannot live with their families;
            ``(6) make timely decisions about permanent living 
        arrangements for children who must be removed from or who 
        cannot live with their families; and
            ``(7) provide for continuing evaluation and improvement of 
        child protection laws, regulations, and services.

``SEC. 422. ELIGIBLE STATES.

    ``(a) In General.--As used in this part, the term `eligible State' 
means, with respect to a fiscal year, a State that, during the 3-year 
period immediately preceding the fiscal year, has submitted to the 
Secretary a plan that includes the following:
            ``(1) Outline of child protection program.--A written 
        document that outlines the activities the State intends to 
        conduct to achieve the purpose of this part, including the 
        procedures to be used for--
                    ``(A) receiving reports of child abuse or neglect;
                    ``(B) investigating such reports;
                    ``(C) protecting children in families in which 
                child abuse or neglect is found to have occurred;
                    ``(D) removing children from dangerous settings;
                    ``(E) protecting children in foster care;
                    ``(F) promoting timely adoptions;
                    ``(G) protecting the rights of families;
                    ``(H) preventing child abuse and neglect; and
                    ``(I) establishing and responding to citizen review 
                panels under section 425.
            ``(2) Certification of state law requiring the reporting of 
        child abuse and neglect.--A certification that the State has in 
        effect laws that require public officials and other 
        professionals to report actual or suspected instances of child 
        abuse or neglect.
            ``(3) Certification of state program to investigate child 
        abuse and neglect cases.--A certification that the State has in 
        effect a program to investigate child abuse and neglect cases.
            ``(4) Certification of state procedures for removal and 
        placement of abused or neglected children.--A certification 
        that the State has in effect procedures for removal from 
        families and placement of abused or neglected children.
            ``(5) Certification of state procedures for developing and 
        reviewing written plans for permanent placement of removed 
        children.--A certification that the State has in effect 
        procedures for ensuring that a written plan is prepared for 
        children who have been removed from their families, which 
        specifies the goal for achieving a permanent placement for the 
        child in a timely fashion, for ensuring that the written plan 
        is reviewed every 6 months, and for ensuring that information 
        about such children is collected regularly and recorded in case 
        records, and a description of such procedures.
            ``(6) Certification that the state will continue to honor 
        adoption assistance agreements.--A certification that the State 
        will honor any adoption assistance agreement (as defined in 
        section 475(3), as in effect immediately before the effective 
        date of this part) entered into by an agency of the State, that 
        is in effect as of such effective date.
            ``(7) Certification of state program to provide independent 
        living services.--A certification that the State has in effect 
        a program to provide independent living services to individuals 
        in the child protection program of the State who have attained 
        16 years of age but have not attained 20 (or, at the option of 
        the State, 22) years of age, and who do not have a family to 
        which to be returned for assistance in making the transition to 
        self-sufficient adulthood.
            ``(8) Identification of child protection goals.--The 
        quantitative goals of the State child protection program.
    ``(b) Determinations.--The Secretary shall determine whether a plan 
submitted pursuant to subsection (a) contains the material required by 
subsection (a). The Secretary may not require a State to include in 
such a plan any material not described in subsection (a), and may not 
review the adequacy of State procedures.

``SEC. 423. GRANTS TO STATES FOR CHILD PROTECTION.

    ``(a) Entitlement.--
            ``(1) In general.--Each eligible State shall be entitled to 
        receive from the Secretary for each fiscal year specified in 
        subsection (b)(1) a grant in an amount equal to the State share 
        of the child protection amount for the fiscal year.
            ``(2) Additional grant.--
                    ``(A) In general.--In addition to a grant under 
                paragraph (1) of this subsection, the Secretary shall 
                pay to each eligible State for each fiscal year 
                specified in subsection (b)(1) an amount equal to the 
                State share of the amount (if any) appropriated 
                pursuant to subparagraph (B) of this paragraph for the 
                fiscal year.
                    ``(B) Limitation on authorization of 
                appropriations.--For grants under subparagraph (A), 
                there are authorized to be appropriated to the 
                Secretary an amount not to exceed $514,000,000 for each 
                fiscal year specified in subsection (b)(1).
    ``(b) Definitions.--As used in this section:
            ``(1) Child protection amount.--The term `child protection 
        grant amount' means--
                    ``(A) $3,930,000,000 for fiscal year 1996;
                    ``(B) $4,195,000,000 for fiscal year 1997;
                    ``(C) $4,507,000,000 for fiscal year 1998;
                    ``(D) $4,767,000,000 for fiscal year 1999; and
                    ``(E) $5,071,000,000 for fiscal year 2000.
            ``(2) State share.--
                    ``(A) In general.--The term `State share' means the 
                greater of--
                    ``(i)(I) the total amount paid to the State under 
                the provisions of law specified in subparagraph (B) for 
                fiscal years 1991, 1992, 1993, and 1994; divided by
                    ``(II) the total amount paid to all of the States 
                under such provisions of law for such fiscal years; or
                    ``(ii)(I) the amount paid to the State under the 
                provisions of law specified in subparagraph (B) for 
                fiscal year 1994; divided by
                    ``(II) the total amount paid to all of the States 
                under such provisions of law for fiscal year 1994.
                    ``(B) Provisions of law.--The provisions of law 
                specified in this subparagraph are the following (as in 
                effect immediately before the effective date of this 
                part):
                            ``(i) Section 474(a) (other than 
                        subparagraphs (C) and (D) of paragraph (3)) of 
                        this Act.
                            ``(ii) Section 304 of the Family Violence 
                        Prevention and Services Act.
                            ``(iii) Section 107(a) of the Child Abuse 
                        Prevention and Treatment Act.
                            ``(iv) Section 201(d) of the Child Abuse 
                        Prevention and Treatment Act.
                            ``(v) Section 423 of this Act.
            ``(3) State.--The term `State' includes the several States, 
        the District of Columbia, the Commonwealth of Puerto Rico, the 
        United States Virgin Islands, Guam, and American Samoa.
    ``(c) Use of Grant.--
            ``(1) In general.--A State to which a grant is made under 
        this section may use the grant in any manner that the State 
        deems appropriate to accomplish the purpose of this part, 
        including setting up abuse and neglect reporting systems, abuse 
        and neglect prevention, family preservation, foster care, 
        adoption, program administration, and training.
            ``(2) Timing of expenditures.--A State to which a grant is 
        made under this section for a fiscal year shall expend the 
        total amount of the grant not later than the end of the 
        immediately succeeding fiscal year.
            ``(3) Rule of interpretation.--This part shall not be 
        interpreted to prohibit short- and long-term foster care 
        facilities operated for profit from receiving funds provided 
        under this part.
    ``(d) Timing of Payments.--The Secretary shall pay each eligible 
State the amount of the grant payable to the State under this section 
in quarterly installments.
    ``(e) Penalties.--
            ``(1) For use of grant in violation of this part.--
                    ``(A) In general.--If an audit conducted pursuant 
                to chapter 75 of title 31, United States Code, finds 
                that an amount paid to a State under this section for a 
                fiscal year has been used in violation of this part, 
                then the Secretary shall reduce the amount of the grant 
                that would (in the absence of this subsection) be 
                payable to the State under this section for the 
                immediately succeeding fiscal year by the amount so 
                used.
                    ``(B) Limitation.--In carrying out subparagraph 
                (A), the Secretary shall not reduce any quarterly 
                payment by more than 25 percent.
                    ``(C) Carryforward of unrecovered penalty.--To the 
                extent that subparagraph (B) prevents the Secretary 
                from recovering during a fiscal year the full amount of 
                a penalty imposed on a State under subparagraph (A) for 
                a prior fiscal year, the Secretary shall apply 
                subparagraph (A) to the grant otherwise payable to the 
                State under this section for the immediately succeeding 
                fiscal year.
            ``(2) For failure to maintain effort.--If an audit 
        conducted pursuant to chapter 75 of title 31, United States 
        Code, finds that the amount expended by a State (other than 
        from amounts provided by the Federal Government) during fiscal 
        year 1996 or 1997 to carry out the State program funded under 
        this part is less than the total amount expended by the State 
        (other than from amounts provided by the Federal Government) 
        during fiscal year 1995 under parts B and E of this title, then 
        the Secretary shall reduce the amount of the grant that would 
        (in the absence of this subsection) be payable to the State 
        under this section for the immediately succeeding fiscal year 
        by the amount of the difference.
            ``(3) For failure to submit required report.--
                    ``(A) In general.--The Secretary shall reduce by 3 
                percent the amount of the grant that would (in the 
                absence of this subsection) be payable to a State under 
                this section for a fiscal year if the Secretary 
                determines that the State has not submitted the report 
                required by section 427(b) for the immediately 
                preceding fiscal year, within 6 months after the end of 
                the immediately preceding fiscal year.
                    ``(B) Rescission of penalty.--The Secretary shall 
                rescind a penalty imposed on a State under subparagraph 
                (A) with respect to a report for a fiscal year if the 
                State submits the report before the end of the 
                immediately succeeding fiscal year.
    ``(f) Limitation on Federal Authority.--Except as expressly 
provided in this part, the Secretary may not regulate the conduct of 
States under this part or enforce any provision of this part.

``SEC. 424. CHILD PROTECTION STANDARDS.

    ``Each State to which a grant is made under section 423 shall 
operate a child protection program in accordance with the following 
standards in order to assure the protection of children:
            ``(1) The primary standard by which a State child welfare 
        system shall be judged is the protection of children.
            ``(2) Each State shall investigate reports of abuse and 
        neglect promptly.
            ``(3) Children removed from their homes shall have a 
        permanency plan and a dispositional hearing by a court or a 
        court-appointed body within 3 months after a fact-finding 
        hearing.
            ``(4) All child protection cases in which the child is 
        placed outside the home shall be reviewed every 6 months unless 
        the child is in a long-term placement.

``SEC. 425. CITIZEN REVIEW PANELS.

    ``(a) Establishment.--Each State to which a grant is made under 
section 423 shall establish at least 3 citizen review panels.
    ``(b) Composition.--Each panel established under subsection (a) 
shall be broadly representative of the community from which drawn.
    ``(c) Frequency of Meetings.--Each panel established under 
subsection (a) shall meet not less frequently than quarterly.
    ``(d) Duties.--
            ``(1) In general.--Each panel established under subsection 
        (a) shall, by examining specific cases, determine the extent to 
        which the State and local agencies responsible for carrying out 
        activities under this part are doing so in accordance with the 
        State plan, with the child protection standards set forth in 
        section 424, and with any other criteria that the panel 
        considers important to ensure the protection of children.
            ``(2) Confidentiality.--The members and staff of any panel 
        established under subsection (a) shall not disclose to any 
        person or government any information about any specific child 
        protection case with respect to which the panel is provided 
        information.
    ``(e) State Assistance.--Each State that establishes a panel under 
subsection (a) shall afford the panel access to any information on any 
case that the panel desires to review, and shall provide the panel with 
staff assistance in performing its duties.
    ``(f) Reports.--Each panel established under subsection (a) shall 
make a public report of its activities after each meeting.

``SEC. 426. CLEARINGHOUSE AND HOTLINE ON MISSING AND RUNAWAY CHILDREN.

    ``(a) In General.--The Secretary shall establish and operate a 
clearinghouse of information on children who are missing or have run 
away from home, including a 24-hour toll-free telephone hotline which 
may be contacted for information on such children.
    ``(b) Limitation on Authorization of Appropriations.--To carry out 
subsection (a), there are authorized to be appropriated to the 
Secretary not to exceed $3,000,000 for each fiscal year.

``SEC. 427. DATA COLLECTION AND REPORTING.

    ``(a) Annual Reports on State Child Welfare Goals.--On the date 
that is 3 years after the effective date of this part and annually 
thereafter, each State to which a grant is made under section 423 shall 
submit to the Secretary a report that contains quantitative information 
on the extent to which the State is making progress toward achieving 
the goals of the State child protection program.
    ``(b) Annual State Data Reports.--Each State to which a grant is 
made under section 423 shall annually submit to the Secretary of Health 
and Human Services a report that includes the following:
            ``(1) The number of children who were reported to the State 
        during the year as abused or neglected.
            ``(2) Of the number of children described in paragraph (1), 
        the number with respect to whom such reports were 
        substantiated.
            ``(3) Of the number of children described in paragraph 
        (2)--
                    ``(A) the number that did not receive services 
                during the year under the State program funded under 
                this part;
                    ``(B) the number that received services during the 
                year under the State program funded under this part; 
                and
                    ``(C) the number that were removed from their 
                families during the year.
            ``(4) The number of families that received preventive 
        services from the State during the year.
            ``(5) Of the number of families described in paragraph (4), 
        the number with respect to whom there is a confirmed report of 
        abuse or neglect of a child.
            ``(6) The number of children who entered foster care under 
        the responsibility of the State during the year.
            ``(7) The number of children in foster care under the 
        responsibility of the State who exited from foster care during 
        the year.
            ``(8) The types of foster care placements made by the State 
        during the year, and the number of children in each type of 
        placement.
            ``(9) The average length of the foster care placements made 
        by the State during the year.
            ``(10) The age, ethnicity, gender, and family income of the 
        children placed in foster care under the responsibility of the 
        State during the year.
            ``(11) The reasons for making foster care placements during 
        the year.
            ``(12) The number of children in foster care under the 
        responsibility of the State with respect to whom the State has 
        the goal of adoption.
            ``(13) The number of children in foster care under the 
        responsibility of the State who were freed for adoption during 
        the year.
            ``(14) The number of children in foster care under the 
        responsibility of the State whose adoptions were finalized 
        during the year.
            ``(15) The number of disrupted adoptions in the State 
        during the year.
            ``(16) The number of children who re-entered foster care 
        under the responsibility of the State during the year.
            ``(17) The number of children in foster care under the 
        responsibility of the State for whom there is a permanency 
        plan.
            ``(18) Quantitative measurements showing whether the State 
        is making progress toward the child protection goals identified 
        by the State under section 422(a)(8).
            ``(19) The number of infants abandoned in the State during 
        the year, and the number of such infants who were legally 
        adopted during the year and the length of time between the 
        discovery of the abandonment and such adoption.
            ``(20) The number of children who died during the year 
        while in foster care under the responsibility of the State.
            ``(21) The number of deaths in the State during the year 
        resulting from child abuse or neglect.
            ``(22) The number of children served by the independent 
        living program of the State.
            ``(23) Any other information which the Secretary and a 
        majority of the States agree is appropriate to collect for 
        purposes of this part.
            ``(24) The response of the State to the findings and 
        recommendations of the citizen review panels established by the 
        State pursuant to section 425.
    ``(c) Authority of States To Use Estimates.--A State may comply 
with a requirement to provide precise numerical information described 
in subsection (b) by submitting an estimate which is obtained through 
the use of scientifically acceptable sampling methods.
    ``(d) Annual Report by the Secretary.--Within 6 months after the 
end of each fiscal year, the Secretary shall prepare a report based on 
information provided by the States for the fiscal year pursuant to 
subsection (b), and shall make the report and such information 
available to the Congress and the public.

``SEC. 428. RESEARCH AND TRAINING.

    ``(a) In General.--The Secretary shall conduct research and 
training in child welfare.
    ``(b) Limitation on Authorization of Appropriations.--To carry out 
subsection (a), there are authorized to be appropriated to the 
Secretary not to exceed $10,000,000 for each fiscal year.

``SEC. 429. NATIONAL RANDOM SAMPLE STUDY OF CHILD WELFARE.

    ``(a) In General.--The Secretary shall conduct a national study 
based on random samples of children who are at risk of child abuse or 
neglect, or are determined by States to have been abused or neglected.
    ``(b) Requirements.--The study required by subsection (a) shall--
            ``(1) have a longitudinal component; and
            ``(2) yield data reliable at the State level for as many 
        States as the Secretary determines is feasible.
    ``(c) Preferred Contents.--In conducting the study required by 
subsection (a), the Secretary should--
            ``(1) collect data on the child protection programs of 
        different small States or (different groups of such States) in 
        different years to yield an occasional picture of the child 
        protection programs of such States;
            ``(2) carefully consider selecting the sample from cases of 
        confirmed abuse or neglect; and
            ``(3) follow each case for several years while obtaining 
        information on, among other things--
                    ``(A) the type of abuse or neglect involved;
                    ``(B) the frequency of contact with State or local 
                agencies;
                    ``(C) whether the child involved has been separated 
                from the family, and, if so, under what circumstances;
                    ``(D) the number, type, and characteristics of out-
                of-home placements of the child; and
                    ``(E) the average duration of each placement.
    ``(d) Reports.--
            ``(1) In general.--From time to time, the Secretary shall 
        prepare reports summarizing the results of the study required 
        by subsection (a), and should include in such reports a 
        comparison of the results of the study with the information 
        reported by States under section 427.
            ``(2) Availability.--The Secretary shall make available to 
        the public any report prepared under paragraph (1), in writing 
        or in the form of an electronic data tape.
            ``(3) Authority to charge fee.--The Secretary may charge 
        and collect a fee for the furnishing of reports under paragraph 
        (2).
    ``(e) Funding.--Out of any money in the Treasury of the United 
States not otherwise appropriated, the Secretary of the Treasury shall 
pay to the Secretary of Health and Human Services $6,000,000 for each 
of fiscal years 1996 through 2000 to carry out this section.

``SEC. 430. REMOVAL OF BARRIERS TO INTERETHNIC ADOPTION.

    ``(a) Purpose.--The purpose of this section is to decrease the 
length of time that children wait to be adopted and to prevent 
discrimination in the placement of children on the basis of race, 
color, or national origin.
    ``(b) Multiethnic Placements.--
            ``(1) Prohibition.--A State or other entity that receives 
        funds from the Federal Government and is involved in adoption 
        or foster care placements may not--
                    ``(A) deny to any person the opportunity to become 
                an adoptive or a foster parent, on the basis of the 
                race, color, or national origin of the person, or of 
                the child, involved; or
                    ``(B) delay or deny the placement of a child for 
                adoption or into foster care, or otherwise discriminate 
                in making a placement decision, on the basis of the 
                race, color, or national origin of the adoptive or 
                foster parent, or the child, involved.
            ``(2) Penalties.--
                    ``(A) State violators.--A State that violates 
                paragraph (1) during a period shall remit to the 
                Secretary all funds that were paid to the State under 
                this part during the period.
                    ``(B) Private violators.--Any other entity that 
                violates paragraph (1) during a period shall remit to 
                the Secretary all funds that were paid to the entity 
                during the period by a State from funds provided under 
                this part.
            ``(3) Private cause of action.--
                    ``(A) In general.--Any individual who is aggrieved 
                by a violation of paragraph (1) by a State or other 
                entity may bring an action seeking relief in any United 
                States district court.
                    ``(B) Statute of limitations.--An action under this 
                paragraph may not be brought more than 2 years after 
                the date the alleged violation occurred.''.

SEC. 202. CONFORMING AMENDMENTS.

    (a) Amendments to Part D of Title IV of the Social Security Act.--
            (1) Section 452(a)(10)(C) of the Social Security Act (42 
        U.S.C. 652(a)(10)(C)), as amended by section 104(b)(2)(C) of 
        this Act, is amended--
                    (A) by striking ``(or foster care maintenance 
                payments under part E)'' and inserting ``or cash 
                payments under a State program funded under part B''; 
                and
                    (B) by striking ``or 471(a)(17)''.
            (2) Section 452(g)(2)(A) of such Act (42 U.S.C. 
        652(g)(2)(A)) is amended--
                    (A) by striking ``E'' each place such term appears 
                and inserting ``B''; and
                    (B) by striking ``plan under part E'' and inserting 
                ``State program funded under part B''.
            (3) Section 456(a)(1) of such Act (42 U.S.C. 656(a)(1)) is 
        amended by striking ``foster care maintenance payments'' and 
        inserting ``benefits or services under a State program funded 
        under part B''.
            (4) Section 464(a)(1) of such Act (42 U.S.C. 664(a)(1)), as 
        amended by section 104(b)(14) of this Act, is amended by 
        striking ``or section 471(a)(17)''.
            (5) Section 466(a)(3)(B) of such Act (42 U.S.C. 
        666(a)(3)(B)), as amended by section 104(b)(15) of this Act, is 
        amended by striking ``or 471(a)(17)''.
    (b) Repeal of Part E of Title IV of the Social Security Act.--Part 
E of title IV of such Act (42 U.S.C. 671-679) is hereby repealed.
    (c) Amendment to Title XVI of the Social Security Act as in Effect 
With Respect to the States.--Section 1611(c)(5)(B) of such Act (42 
U.S.C. 1382(c)(5)(B)) is amended to read as follows: ``(B) the State 
program funded under part B of title IV,''.
    (d) Repeal of Section 13712 of the Omnibus Budget Reconciliation 
Act of 1993.--Section 13712 of the Omnibus Budget Reconciliation Act of 
1993 (42 U.S.C. 670 note) is hereby repealed.
    (e) Amendment to Section 9442 of the Omnibus Budget Reconciliation 
Act of 1986.--Section 9442(4) of the Omnibus Budget Reconciliation Act 
of 1986 (42 U.S.C. 679a(4)) is amended by inserting ``(as in effect 
before October 1, 1995)'' after ``Act''.
    (f) Repeal of Section 553 of the Howard M. Metzenbaum Multiethnic 
Placement Act of 1994.--Section 553 of the Howard M. Metzenbaum 
Multiethnic Placement Act of 1994 (42 U.S.C. 5115a; 108 Stat. 4056) is 
hereby repealed.

SEC. 203. CONTINUED APPLICATION OF CURRENT STANDARDS UNDER MEDICAID 
              PROGRAM.

    Section 1931 of the Social Security Act, as inserted by section 
106(a)(2) of this Act, is amended--
            (1) in subsection (a)(1)--
                    (A) by striking ``part A of'', and
                    (B) by striking ``under such part'' and inserting 
                ``under a part of such title''; and
            (2) in subsection (b), by striking ``part A of''.

SEC. 204. EFFECTIVE DATE.

    (a) In General.--This title and the amendments made by this title 
shall take effect on October 1, 1995.
    (b) Transition Rule.--The amendments made by this title shall not 
apply with respect to--
            (1) powers, duties, functions, rights, claims, penalties, 
        or obligations applicable to aid or services provided before 
        the effective date of this title under the provisions amended; 
        and
            (2) administrative actions and proceedings commenced before 
        such date, or authorized before such date to be commenced, 
        under such provisions.

               TITLE III--RESTRICTING WELFARE FOR ALIENS

SEC. 301. STATEMENTS OF NATIONAL POLICY CONCERNING WELFARE AND 
              IMMIGRATION.

    The Congress makes the following statements concerning national 
policy with respect to welfare and immigration:
            (1) Self-sufficiency has been a basic principle of United 
        States immigration law since this country's earliest 
        immigration statutes.
            (2) It continues to be the immigration policy of the United 
        States that aliens within the nation's borders not depend on 
        public resources to meet their needs, but rather rely on their 
        own capabilities and the resources of their families, their 
        sponsors, and private organizations.
            (3) Despite the principle of self-sufficiency, aliens have 
        been applying for and receiving public benefits from Federal, 
        State, and local governments at increasing rates.
            (4) Current eligibility rules for public assistance and 
        unenforceable support agreements have proved wholly incapable 
        of assuring that individual aliens not burden the public 
        benefits system.
            (5) It is a compelling government interest to enact new 
        eligibility rules and sponsorship agreements in order to assure 
        that aliens be self-reliant in accordance with national 
        immigration policy.

SEC. 302. INELIGIBILITY OF ALIENS FOR FEDERAL PUBLIC WELFARE 
              ASSISTANCE.

    (a) In General.--Notwithstanding any other provision of law and 
except as provided in subsection (b), no alien shall be eligible for 
any program referred to in subsection (c).
    (b) Exceptions.--
            (1) Refugee exception.--Subsection (a) shall not apply to 
        an alien admitted to the United States as a refugee under 
        section 207 of the Immigration and Nationality Act until 5 
        years after the date of such alien's arrival into the United 
        States.
            (2) Aged exception.--Subsection (a) shall not apply to an 
        alien who--
                    (A) has been lawfully admitted to the United States 
                for permanent residence;
                    (B) is over 75 years of age; and
                    (C) has resided in the United States for at least 5 
                years.
            (3) Veteran exception.--Subsection (a) shall not apply to 
        an alien who is a veteran (as defined in section 101 of title 
        38, United States Code) with a discharge characterized as an 
        honorable discharge and who is lawfully residing in any State 
        or any territory or possession of the United States.
            (4) Current legal resident exception.--Subsection (a) shall 
        not apply to the eligibility of an alien for a program referred 
        to in subsection (c) until 1 year after the date of the 
        enactment of this Act if, on such date of enactment, the alien 
        is lawfully residing in any State or any territory or 
        possession of the United States and is eligible for the 
        program.
    (c) Programs for Which Aliens Are Ineligible.--The programs 
referred to in this subsection are the following:
            (1) SSI.--The supplemental security income program under 
        title XVI of the Social Security Act.
            (2) Temporary assistance for needy families.--The program 
        of block grants to States for temporary assistance for needy 
        families under part A of title IV of the Social Security Act.
            (3) Social services block grant.--The program of block 
        grants to States for social services under title XX of the 
        Social Security Act.
    (d) Notification.--Each Federal agency that administers a program 
referred to in subsection (c) shall, directly or through the States, 
post information and provide general notification to the public and 
program recipients of the changes regarding eligibility for any such 
program pursuant to this section.

SEC. 303. INELIGIBILITY OF ILLEGAL ALIENS FOR STATE AND LOCAL PUBLIC 
              WELFARE ASSISTANCE.

    (a) In General.--Notwithstanding any other provision of law and 
except as otherwise provided in this section, no alien who is not 
lawfully present in the United States (as determined in accordance with 
regulations of the Attorney General) shall be eligible for any State 
means-tested public assistance program (as defined in section 307(c)). 
An individual shall not be considered to be lawfully present in the 
United States for purposes of this title merely because the alien may 
be considered to be permanently residing in the United States under 
color of law.
    (b) General Exception for Certain Emergency and Public Health 
Programs.--The limitations under subsection (a) shall not apply to--
            (1) the provision of emergency medical services, or
            (2) public health assistance for immunizations with respect 
        to immunizable diseases and for testing and treatment for 
        communicable diseases.
    (c) Construction.--Nothing in this section shall be construed as 
addressing alien eligibility for State and local governmental programs 
that are not State means-tested public assistance programs.

SEC. 304. STATE AUTHORITY TO LIMIT ELIGIBILITY OF OTHER ALIENS FOR 
              STATE AND LOCAL PUBLIC WELFARE ASSISTANCE.

    (a) In General.--Notwithstanding any other provision of law and 
except as otherwise provided in this section, a State is authorized to 
determine eligibility requirements for aliens who are lawfully present 
in the United States and who are not described in paragraph (1), (2), 
or (3) of section 302(b) for any State means-tested public assistance 
program.
    (b) General Exception for Certain Emergency and Public Health 
Programs.--The limitations under subsection (a) shall not apply to--
            (1) the provision of emergency medical services, or
            (2) public health assistance for immunizations with respect 
        to immunizable diseases and for testing and treatment for 
        communicable diseases.
    (c) Transition.--The limitations of subsection (a) shall not apply 
to eligibility of an alien for a State means-tested public assistance 
program until 1 year after the date of the enactment of this Act if, on 
such date of enactment, the alien is residing in the United States and 
is eligible for benefits under the program. Nothing in the previous 
sentence is intended to address alien eligibility for such a program 
before the date of the enactment of this Act.
    (d) Construction.--Nothing in this section shall be construed as 
addressing alien eligibility for State and local governmental programs 
that are not State means-tested public assistance programs.

SEC. 305. ATTRIBUTION OF SPONSOR'S INCOME AND RESOURCES TO FAMILY-
              SPONSORED IMMIGRANTS.

    (a) In General.--Notwithstanding any other provision of law, in 
determining the eligibility and the amount of benefits of an alien for 
any means-tested public assistance program (as defined in section 
307(c)), the income and resources of the alien shall be deemed to 
include--
            (1) the income and resources of any person who executed an 
        affidavit of support pursuant to section 306 in behalf of such 
        alien, and
            (2) the income and resources of the spouse (if any) of the 
        person.
    (b) Application.--Subsection (a) shall apply with respect to an 
alien until such time as the alien achieves United States citizenship 
through naturalization pursuant to chapter 2 of title III of the 
Immigration and Nationality Act.

SEC. 306. REQUIREMENTS FOR SPONSOR'S AFFIDAVIT OF SUPPORT.

    (a) Enforceability.--No affidavit of support may be accepted by the 
Attorney General or by any consular officer to establish that an alien 
is not excludable as a public charge under section 212(a)(4) of the 
Immigration and Nationality Act unless such affidavit is executed as a 
contract--
            (1) which is legally enforceable against the sponsor by the 
        Federal Government and by any State (or any political 
        subdivision of such State) which provides any means-tested 
        public assistance program, but not later than 10 years after 
        the alien last receives any such benefit; and
            (2) in which the sponsor agrees to submit to the 
        jurisdiction of any Federal or State court for the purpose of 
        actions brought under subsection (e)(2).
Such contract shall be enforceable with respect to benefits provided to 
the alien until such time as the alien achieves United States 
citizenship through naturalization pursuant to chapter 2 of title III 
of the Immigration and Nationality Act.
    (b) Forms.--Not later than ninety days after the date of enactment 
of this Act, the Attorney General, in consultation with the Secretary 
of State and the Secretary of Health and Human Services, shall 
formulate an affidavit of support consistent with the provisions of 
this section.
    (c) Statutory Construction.--Nothing in this section shall be 
construed to grant third party beneficiary rights to any sponsored 
alien under an affidavit of support.
    (d) Notification of Change of Address.--(1) The sponsor shall 
notify the Federal Government and the State in which the sponsored 
alien is currently resident within thirty days of any change of address 
of the sponsor during the period specified in subsection (a)(1).
    (2) Any person subject to the requirement of paragraph (1) who 
fails to satisfy such requirement shall be subject to a civil penalty 
of--
            (A) not less than $250 or more than $2,000, or
            (B) if such failure occurs with knowledge that the 
        sponsored alien has received any benefit under any means-tested 
        public assistance program of the Federal Government or of any 
        State or political subdivision of a State, not less than $2,000 
        or more than $5,000.
    (e) Reimbursement of Government Expenses.--(1)(A) Upon notification 
that a sponsored alien has received any benefit under any means-tested 
public assistance program of the Federal Government or of any State or 
political subdivision of a State, the appropriate Federal, State, or 
local official shall request reimbursement by the sponsor in the amount 
of such assistance.
    (B) The Attorney General, in consultation with the Secretary of 
Health and Human Services, shall prescribe such regulations as may be 
necessary to carry out subparagraph (A).
    (2) If within forty-five days after requesting reimbursement, the 
appropriate Federal, State, or local agency has not received a response 
from the sponsor indicating a willingness to commence payments, an 
action may be brought against the sponsor pursuant to the affidavit of 
support.
    (3) If the sponsor fails to abide by the repayment terms 
established by such agency, the agency may, within sixty days of such 
failure, bring an action against the sponsor pursuant to the affidavit 
of support.
    (4) No cause of action may be brought under this subsection later 
than ten years after the alien last received any benefit under any 
means-tested public assistance program of the Federal Government or of 
any State or political subdivision of a State.
    (f) Jurisdiction.--For purposes of this section, no State court 
shall decline for lack of jurisdiction to hear any action brought 
against a sponsor for reimbursement of the cost of any benefit under 
any means-tested public assistance program of the Federal Government or 
of any State or political subdivision of a State if the sponsored alien 
received public assistance while residing in the State.
    (g) Sponsor Defined.--For the purposes of this section, the term 
``sponsor'' means an individual who--
            (1) is a citizen or national of the United States or an 
        alien who is lawfully admitted to the United States for 
        permanent residence,
            (2) is 18 years of age or over, and
            (3) is domiciled in any State.
    (h) Effective Date.--Subsection (a) shall apply to affidavits of 
support executed on or after a date specified by the Attorney General, 
which date shall be not earlier than 60 days and not later than 90 days 
after the date the Attorney General formulates the form for such 
affidavits under subsection (b).

SEC. 307. DEFINITIONS.

    (a) In General.--Except as otherwise provided in this section, the 
terms used in this title have the same meaning given such terms in 
section 101(a) of the Immigration and Nationality Act.
    (b) State.--As used in this title, the term ``State'' includes the 
District of Columbia, Puerto Rico, the Virgin Islands, Guam, the 
Northern Mariana Islands, and American Samoa.
    (c) Means-Tested Public Assistance Programs.--As used in this 
title:
            (1) In general.--The term ``means-tested public assistance 
        program'' means a program of public assistance (including cash, 
        medical, housing, and food assistance) of the Federal 
        Government or of a State or political subdivision of a State in 
        which the eligibility for benefits under the program, or the 
        amount of such benefits, or both are determined on the basis of 
        income or financial need.
            (2) Federal means-tested public assistance program.--The 
        term ``Federal means-tested public assistance program'' means a 
        program referred to in section 302(c) or a means-tested public 
        assistance program of (or contributed to by) the Federal 
        Government.
            (3) State means-tested public assistance program.--The term 
        ``State means-tested public assistance program'' means a means-
        tested public assistance program of a State or political 
        subdivision of a State, and does not include a program referred 
        to in section 302(c) or another Federal means-tested public 
        assistance program.

SEC. 308. STATE AGENCIES REQUIRED TO PROVIDE INFORMATION ON ILLEGAL 
              ALIENS TO THE IMMIGRATION AND NATURALIZATION SERVICE.

    Each agency that administers the State program under part A of 
title IV of the Social Security Act shall provide the Immigration and 
Naturalization Service with the name, address, and other identifying 
information that the agency has with respect to any individual 
unlawfully in the United States any of whose children is a citizen or 
national of the United States.

                 TITLE IV--SUPPLEMENTAL SECURITY INCOME

SEC. 401. DENIAL OF SUPPLEMENTAL SECURITY INCOME BENEFITS BY REASON OF 
              DISABILITY TO DRUG ADDICTS AND ALCOHOLICS.

    (a) In General.--Section 1614(a)(3) of the Social Security Act (42 
U.S.C. 1382c(a)(3)) is amended by adding at the end the following:
    ``(I) Notwithstanding subparagraph (A), an individual shall not be 
considered to be disabled for purposes of this title if alcoholism or 
drug addiction would (but for this subparagraph) be a contributing 
factor material to the Commissioner's determination that the individual 
is disabled.''.
    (b) Conforming Amendments.--
            (1) Section 1611(e) of such Act (42 U.S.C. 1382(e)) is 
        amended by striking paragraph (3).
            (2) Section 1631(a)(2)(A)(ii) of such Act (42 U.S.C. 
        1383(a)(2)(A)(ii)) is amended--
                    (A) by striking ``(I)''; and
                    (B) by striking subclause (II).
            (3) Section 1631(a)(2)(B) of such Act (42 U.S.C. 
        1383(a)(2)(B)) is amended--
                    (A) by striking clause (vii);
                    (B) in clause (viii), by striking ``(ix)'' and 
                inserting ``(viii)'';
                    (C) in clause (ix)--
                            (i) by striking ``(viii)'' and inserting 
                        ``(vii)''; and
                            (ii) in subclause (II), by striking all 
                        that follows ``15 years'' and inserting a 
                        period;
                    (D) in clause (xiii)--
                            (i) by striking ``(xii)'' and inserting 
                        ``(xi)''; and
                            (ii) by striking ``(xi)'' and inserting 
                        ``(x)''; and
                    (E) by redesignating clauses (viii) through (xiii) 
                as clauses (vii) through (xii), respectively.
            (4) Section 1631(a)(2)(D)(i)(II) of such Act (42 U.S.C. 
        1383(a)(2)(D)(i)(II)) is amended by striking all that follows 
        ``$25.00 per month'' and inserting a period.
            (5) Section 1634 of such Act (42 U.S.C. 1383c) is amended 
        by striking subsection (e).
            (6) Section 201(c)(1) of the Social Security Independence 
        and Program Improvements Act of 1994 (42 U.S.C. 425 note) is 
        amended--
                    (A) by striking ``--'' and all that follows through 
                ``(A)'' the 1st place such term appears;
                    (B) by striking ``and'' the 3rd place such term 
                appears;
                    (C) by striking subparagraph (B);
                    (D) by striking ``either subparagraph (A) or 
                subparagraph (B)'' and inserting ``the preceding 
                sentence''; and
                    (E) by striking ``subparagraph (A) or (B)'' and 
                inserting ``the preceding sentence''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 1995, and shall apply with respect to months 
beginning on or after such date.
    (d) Funding of Certain Programs for Drug Addicts and Alcoholics.--
Out of any money in the Treasury of the United States not otherwise 
appropriated, the Secretary of the Treasury shall pay to the Director 
of the National Institute on Drug Abuse--
            (1) $95,000,000, for each of fiscal years 1997, 1998, 1999, 
        and 2000, for expenditure through the Federal Capacity 
        Expansion Program to expand the availability of drug treatment; 
        and
            (2) $5,000,000 for each of fiscal years 1997, 1998, 1999, 
        and 2000 to be expended solely on the medication development 
        project to improve drug abuse and drug treatment research.

SEC. 402. SUPPLEMENTAL SECURITY INCOME BENEFITS FOR DISABLED CHILDREN.

    (a) Restrictions on Eligibility for Cash Benefits.--
            (1) In general.--Section 1614(a)(3)(A) of the Social 
        Security Act (42 U.S.C. 1382c(a)(3)(A)) is amended--
                    (A) by inserting ``(i)'' after ``(3)(A)'';
                    (B) by inserting ``who has attained 18 years of 
                age'' before ``shall be considered'';
                    (C) by striking ``he'' and inserting ``the 
                individual'';
                    (D) by striking ``(or, in the case of an individual 
                under the age of 18, if he suffers from any medically 
                determinable physical or mental impairment of 
                comparable severity)''; and
                    (E) by adding after and below the end the 
                following:
    ``(ii) An individual who has not attained 18 years of age shall be 
considered to be disabled for purposes of this title for a month if--
            ``(I) the individual--
                    ``(aa) is eligible for cash benefits under this 
                title by reason of disability for the month before the 
                first month for which this clause is in effect and 
                meets all non-disability-related requirements for 
                eligibility for cash benefits under this title; and
                    ``(bb) the individual has any medically 
                determinable physical or mental impairment (or 
                combination of impairments) that meets the 
                requirements, applicable to individuals who have not 
                attained 18 years of age, of the Listings of 
                Impairments set forth in appendix 1 of subpart P of 
                part 404 of title 20, Code of Federal Regulations 
                (revised as of April 1, 1994), or that is equivalent in 
                severity to such an impairment (or such a combination 
                of impairments); or
            ``(II) the individual--
                    ``(aa) is not described in subclause (I)(aa); and
                    ``(bb) has an impairment (or combination of 
                impairments) described in subclause (I)(bb) as a result 
                of which the individual--
                            ``(1) is in a hospital, skilled nursing 
                        facility, nursing facility, residential 
                        treatment facility, intermediate care facility 
                        for the mentally retarded, or other medical 
                        institution; or
                            ``(2) would be required to be placed in 
                        such an institution if the individual were not 
                        receiving personal assistance necessitated by 
                        the impairment (or impairments).''.
            (2) Notice.--Within 1 month after the date of the enactment 
        of this Act, the Commissioner of Social Security shall notify 
        each individual whose eligibility for cash supplemental 
        security income benefits under title XVI of the Social Security 
        Act will terminate by reason of the amendments made by 
        paragraph (1) of such termination.
            (3) Annual reports on listings of impairments.--The 
        Commissioner of Social Security shall annually submit to the 
        Congress a report on the Listings of Impairments set forth in 
        appendix 1 of subpart P of part 404 of title 20, Code of 
        Federal Regulations (revised as of April 1, 1994), that are 
        applicable to individuals who have not attained 18 years of 
        age, and recommend any necessary revisions to the listings.
    (b) Establishment of Program of Block Grants Regarding Children 
With Disabilities.--Title XVI of the Social Security Act (42 U.S.C. 
1381 et seq.) is amended by adding at the end the following:

    ``PART C--BLOCK GRANTS TO STATES FOR CHILDREN WITH DISABILITIES

``SEC. 1641. ENTITLEMENT TO GRANTS.

    ``Each State that meets the requirements of section 1642 for fiscal 
year 1997 or any subsequent fiscal year shall be entitled to receive 
from the Commissioner for the fiscal year a grant in an amount equal to 
the allotment (as defined in section 1646(1)) of the State for the 
fiscal year.

``SEC. 1642. REQUIREMENTS.

    ``(a) In General.--A State meets the requirements of this section 
for a grant under section 1641 for a fiscal year if by the date 
specified by the Commissioner, the State submits to the Commissioner an 
application for the grant that is in such form, is made in such manner, 
and contain such agreements, assurances, and information as the 
Commissioner determines to be necessary to carry out this part, and if 
the application contains an agreement by the State in accordance with 
the following:
            ``(1) The grant will not be expended for any purpose other 
        than providing authorized services (as defined in section 
        1646(2)) to qualifying children (as defined in section 
        1646(3)).
            ``(2)(A) In providing authorized services, the State will 
        make every reasonable effort to obtain payment for the services 
        from other Federal or State programs that provide payment for 
        such services and from private entities that are legally liable 
        to make the payments pursuant to insurance policies, prepaid 
        plans, or other arrangements.
            ``(B) The State will expend the grant only to the extent 
        that payments from the programs and entities described in 
        subparagraph (A) are not available for authorized services 
        provided by the State.
            ``(3) The State will comply with the condition described in 
        subsection (b).
            ``(4) The State will comply with the condition described in 
        subsection (c).
    ``(b) Maintenance of Effort.--
            ``(1) In general.--The condition referred to in subsection 
        (a)(3) for a State for a fiscal year is that, with respect to 
        the purposes described in paragraph (2), the State will 
        maintain expenditures of non-Federal amounts for such purposes 
        at a level that is not less than the following, as applicable:
                    ``(A) For the first fiscal year for which the State 
                receives a grant under section 1641, an amount equal to 
                the difference between--
                            ``(i) the average level of such 
                        expenditures maintained by the State for the 2-
                        year period preceding October 1, 1995 (except 
                        that, if such first fiscal year is other than 
                        fiscal year 1997, the amount of such average 
                        level shall be increased to the extent 
                        necessary to offset the effect of inflation 
                        occurring after October 1, 1995); and
                            ``(ii) the aggregate of non-Federal 
                        expenditures made by the State for such 2-year 
                        period pursuant to section 1618 (as such 
                        section was in effect for such period).
                    ``(B) For each subsequent fiscal year, the amount 
                applicable under subparagraph (A) increased to the 
                extent necessary to offset the effect of inflation 
                occurring after the beginning of the fiscal year to 
                which such subparagraph applies.
            ``(2) Relevant purposes.--The purposes described in this 
        paragraph are any purposes designed to meet (or assist in 
        meeting) the unique needs of qualifying children that arise 
        from physical and mental impairments, including such purposes 
        that are authorized to be carried out under title XIX.
            ``(3) Rule of construction.--With respect to compliance 
        with the agreement made by a State pursuant to paragraph (1), 
        the State has discretion to select, from among the purposes 
        described in paragraph (2), the purposes for which the State 
        expends the non-Federal amounts reserved by the State for such 
        compliance.
            ``(4) Use of consumer price index.--Determinations under 
        paragraph (1) of the extent of inflation shall be made through 
        use of the consumer price index for all urban consumers, U.S. 
        city average, published by the Bureau of Labor Statistics.
    ``(c) Assessment of Need for Services.--The condition referred to 
in subsection (a)(4) for a State for a fiscal year is that each 
qualifying child will be permitted to apply for authorized services, 
and will be provided with an opportunity to have an assessment 
conducted to determine the need of such child for authorized services.

``SEC. 1643. AUTHORITY OF STATE.

    ``The following decisions are in the discretion of a State with 
respect to compliance with an agreement made by the State under section 
1642(a)(1):
            ``(1) Decisions regarding which of the authorized services 
        are provided.
            ``(2) Decisions regarding who among qualifying children in 
        the State receives the services.
            ``(3) Decisions regarding the number of services provided 
        for the qualifying child involved and the duration of the 
        services.

``SEC. 1644. AUTHORIZED SERVICES.

    ``(a) Authority of Commissioner.--The Commissioner, subject to 
subsection (b), shall issue regulations designating the purposes for 
which grants under section 1641 are authorized to be expended by the 
States.
    ``(b) Requirements Regarding Services.--The Commissioner shall 
ensure that the purposes authorized under subsection (a)--
            ``(1) are designed to meet (or assist in meeting) the 
        unique needs of qualifying children that arise from physical 
        and mental impairments;
            ``(2) include medical and nonmedical services; and
            ``(3) do not include the provision of cash benefits.

``SEC. 1645. GENERAL PROVISIONS.

    ``(a) Issuance of Regulations.--Regulations under this part shall 
be issued in accordance with procedures established for the issuance of 
substantive rules under section 553 of title 5, United States Code. 
Payments under grants under section 1641 for fiscal year 1997 shall 
begin not later than January 1, 1997, without regard to whether final 
rules under this part have been issued and without regard to whether 
such rules have taken effect.
    ``(b) Provisions Regarding Other Programs.--
            ``(1) Inapplicability of value of services.--The value of 
        authorized services provided under this part shall not be taken 
        into account in determining eligibility for, or the amount of, 
        benefits or services under any Federal or federally-assisted 
        program.
            ``(2) Medicaid program.--For purposes of title XIX, each 
        qualifying child shall be considered to be a recipient of 
        supplemental security income benefits under this title. The 
        preceding sentence applies on and after the date of the 
        enactment of this part.
    ``(c) Use by States of Existing Delivery Systems.--With respect to 
the systems utilized by the States to deliver services to individuals 
with disabilities (including systems utilized before the date of the 
enactment of the Welfare Transformation Act of 1995), it is the sense 
of the Congress that the States should utilize such systems in 
providing authorized services under this part.
    ``(d) Required Participation of States.--Subparagraphs (C)(i) and 
(E)(i)(I) of section 205(c)(2) shall not apply to a State that does not 
participate in the program established in this part for fiscal year 
1997 or any succeeding fiscal year.

``SEC. 1646. DEFINITIONS.

    ``As used in this part:
            ``(1) Allotment.--The term `allotment' means, with respect 
        to a State and a fiscal year, the product of--
                    ``(A) an amount equal to the difference between--
                            ``(i) the number of qualifying children in 
                        the State (as determined for the most recent 
                        12-month period for which data are available to 
                        the Commissioner); and
                            ``(ii) the number of qualifying children in 
                        the State receiving cash benefits under this 
                        title by reason of disability (as so 
                        determined); and
                    ``(B) an amount equal to 75 percent of the mean 
                average of the respective annual totals of cash 
                benefits paid under this title to each qualifying child 
                described in subparagraph (A)(ii) (as so determined).
            ``(2) Authorized service.--The term `authorized service' 
        means each purpose authorized by the Commissioner under section 
        1644(a).
            ``(3) Qualifying child.--
                    ``(A) In general.--The term `qualifying child' 
                means an individual who--
                            ``(i) has not attained 18 years of age; and
                            ``(ii) is (or, but for section 
                        1614(a)(3)(A)(ii)(II)(bb), would be) eligible 
                        for cash benefits under this title by reason of 
                        disability.
                    ``(B) Responsibilities of commissioner.--The 
                Commissioner shall provide for determinations of 
                whether individuals meet the criteria established in 
                subparagraph (A) for status as qualifying children. 
                Such determinations shall be made in accordance with 
                the provisions otherwise applicable under this title 
                with respect to such criteria.''.
    (c) Provisions Relating to SSI Cash Benefits and SSI Service 
Benefits.--
            (1) Continuing disability reviews for certain children.--
        Section 1614(a)(3)(G) of such Act (42 U.S.C. 1382c(a)(3)(G)) is 
        amended--
                    (A) by inserting ``(i)'' after ``(G)''; and
                    (B) by adding at the end the following:
    ``(ii)(I) Not less frequently than once every 3 years, the 
Commissioner shall redetermine the eligibility for cash benefits under 
this title and for services under part C--
            ``(aa) of each individual who has not attained 18 years of 
        age and is eligible for such cash benefits by reason of 
        disability; and
            ``(bb) of each qualifying child (as defined in section 
        1646(3)).
    ``(II) Subclause (I) shall not apply to an individual if the 
individual has an impairment (or combination of impairments) which is 
(or are) not expected to improve.''.
            (2) Disability review required for ssi recipients who are 
        18 years of age.--
                    (A) In general.--Section 1614(a)(3)(G) of such Act 
                (42 U.S.C. 1382c(a)(3)(G)), as amended by paragraph (1) 
                of this subsection, is amended by adding at the end the 
                following:
    ``(iii)(I) The Commissioner shall redetermine the eligibility of a 
qualified individual for supplemental security income benefits under 
this title by reason of disability, by applying the criteria used in 
determining eligibility for such benefits of applicants who have 
attained 18 years of age.
    ``(II) The redetermination required by subclause (I) with respect 
to a qualified individual shall be conducted during the 1-year period 
that begins on the date the qualified individual attains 18 years of 
age.
    ``(III) As used in this clause, the term `qualified individual' 
means an individual who attains 18 years of age and is a recipient of 
cash benefits under this title by reason of disability or of services 
under part C.
    ``(IV) A redetermination under subclause (I) of this clause shall 
be considered a substitute for a review required under any other 
provision of this subparagraph.''.
                    (B) Report to the congress.--Not later than October 
                1, 1998, the Commissioner of Social Security 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 activities conducted under 
                section 1614(a)(3)(G)(iii) of the Social Security Act.
                    (C) Conforming repeal.--Section 207 of the Social 
                Security Independence and Program Improvements Act of 
                1994 (42 U.S.C. 1382 note; 108 Stat. 1516) is hereby 
                repealed.
            (3) Disability review required for low birth weight babies 
        who have received ssi benefits for 12 months.--Section 
        1614(a)(3)(G) of such Act (42 U.S.C. 1382c(a)(3)(G)), as 
        amended by paragraphs (1) and (2) of this subsection, is 
        amended by adding at the end the following:
    ``(iv)(I) The Commissioner shall redetermine the eligibility for--
            ``(aa) cash benefits under this title by reason of 
        disability of an individual whose low birth weight is a 
        contributing factor material to the Commissioner's 
        determination that the individual is disabled; and
            ``(bb) services under part C of an individual who is 
        eligible for such services by reason of low birth weight.
    ``(II) The redetermination required by subclause (I) shall be 
conducted once the individual has received such benefits for 12 months.
    ``(III) A redetermination under subclause (I) of this clause shall 
be considered a substitute for a review required under any other 
provision of this subparagraph.''.
            (4) Applicability of medicaid rules regarding counting of 
        certain assets and trusts for children.--Section 1613(c) of the 
        Social Security Act (42 U.S.C. 1382b(c)) is amended to read as 
        follows:

``treatment of certain assets and trusts in eligibility determinations 
                              for children

    ``(c) Subsections (c) and (d) of section 1917 shall apply to 
determinations of eligibility for benefits under this title in the case 
of an individual who has not attained 18 years of age in the same 
manner as such subsections apply to determinations of eligibility for 
medical assistance under a State plan under title XIX, except that--
            ``(1) the amount described in section 1917(c)(1)(E)(i)(II) 
        shall be the amount of cash benefits payable under this title 
        to an eligible individual who does not have an eligible spouse 
        and who has no income or resources;
            ``(2) the look-back date specified in section 1917(c)(1)(B) 
        shall be the date that is 36 months before the date the 
        individual has applied for benefits under this title; and
            ``(3) any assets in a trust over which the individual has 
        control shall be considered assets of the individual.''.
    (d) Conforming Amendments.--
            (1) Subsections (b)(1), (b)(2), (c)(3), (c)(5), and 
        (e)(1)(B) of section 1611 and section 1614(a)(1)(B)(ii) of the 
        Social Security Act (42 U.S.C. 1382(b)(1), (b)(2), (c)(3), 
        (c)(5), and (e)(1)(B) and 1382c(a)(1)(B)(ii)) are each amended 
        by inserting ``cash'' before ``benefit under this title''.
            (2) Section 1611(c)(1) of such Act (42 U.S.C. 1382(c)(1)) 
        is amended--
                    (A) by striking ``a benefit'' and inserting 
                ``benefits'';
                    (B) by striking ``such benefit'' and inserting 
                ``the cash benefit under this title''; and
                    (C) by striking ``and the amount of such benefits'' 
                and inserting ``benefits under this title and the 
                amount of any cash benefit under this title''.
            (3) Section 1611(c)(2) of such Act (42 U.S.C. 1382(c)(2)) 
        is amended--
                    (A) by striking ``such benefit'' and inserting 
                ``the cash benefit'';
                    (B) by inserting ``cash'' before ``benefits'' each 
                place such term appears; and
                    (C) in subparagraph (B), by inserting ``cash'' 
                before ``benefit''.
            (4) Section 1611(c)(3) of such Act (42 U.S.C. 1382(c)(3)) 
        is amended by inserting ``cash'' before ``benefits under this 
        title''.
            (5) Section 1611(e)(1)(G) of such Act (42 U.S.C. 
        1382(e)(1)(G)) is amended by inserting ``cash'' before 
        ``benefit of''.
            (6) Section 1614(a)(4) of such Act (42 U.S.C. 1382c(a)(4)) 
        is amended by inserting ``or impairment'' after ``disability'' 
        each place such term appears.
            (7) Section 1614(f)(1) of such Act (42 U.S.C. 1382c(f)(1)) 
        is amended by striking ``and the amount of such benefits'' and 
        inserting ``benefits under this title and the amount of any 
        cash benefit under this title''.
            (8) Section 1614(f)(2)(A) of such Act (42 U.S.C. 
        1382c(f)(2)(A)) is amended by striking ``and the amount of 
        benefits'' and inserting ``benefits under this title and the 
        amount of any cash benefit''.
            (9) Section 1614(f)(3) of such Act (42 U.S.C. 1382c(f)(3)) 
        is amended by striking ``and the amount of benefits'' and 
        inserting ``benefits under this title and the amount of any 
        cash benefit under this title''.
            (10) Section 1616(e)(1) of such Act (42 U.S.C. 1382e(e)(1)) 
        is amended by inserting ``cash'' before ``supplemental''.
            (11) Section 1618(b)(2) of such Act (42 U.S.C. 1382g(b)(2)) 
        is amended by inserting ``cash'' after ``level of''.
            (12) Section 1621(a) of such Act (42 U.S.C. 1382j(a)) is 
        amended by striking ``and the amount of benefits'' and 
        inserting ``benefits under this title and the amount of any 
        cash benefit under this title''.
            (13) Section 1631(a)(4) of such Act (42 U.S.C. 1383(a)(4)) 
        is amended by inserting ``cash'' before ``benefits'' the 1st 
        place such term appears in each of subparagraphs (A) and (B).
            (14) Section 1631(a)(7)(A) of such Act (42 U.S.C. 
        1383(a)(7)(A)) is amended by inserting ``cash'' before 
        ``benefits based''.
            (15) Section 1631(a)(8)(A) of such Act (42 U.S.C. 
        1383(a)(8)(A)) is amended by striking ``benefits based on 
        disability or blindness under this title'' and inserting 
        ``benefits under this title (other than by reason of age)''.
            (16) Section 1631(c) of such Act (42 U.S.C. 1383(c)) is 
        amended--
                    (A) by striking ``payment'' each place such term 
                appears and inserting ``benefits''; and
                    (B) by striking ``payments'' and inserting 
                ``benefits''.
            (17) Section 1631(e) of such Act (42 U.S.C. 1383(e)) is 
        amended--
                    (A) in paragraph (1)(B), by striking ``amounts of 
                such benefits'' and inserting ``amounts of cash 
                benefits under this title'';
                    (B) in paragraph (2), by inserting ``cash'' before 
                ``benefits'' each place such term appears;
                    (C) by redesignating the 2nd paragraph (6) and 
                paragraph (7) as paragraphs (7) and (8), respectively; 
                and
                    (D) in paragraph (7) (as so redesignated), by 
                inserting ``cash'' before ``benefits''.
            (18) Section 1631(g)(2) of such Act (42 U.S.C. 1383(g)(2)) 
        is amended by striking ``supplemental security income'' and 
        inserting ``cash''.
            (19) Section 1635(a) of such Act (42 U.S.C. 1383d(a)) is 
        amended by striking ``by reason of disability or blindness''.
    (e) Temporary Eligibility for Cash Benefits for Poor Disabled 
Children Residing in States Applying Alternative Income Eligibility 
Standards Under Medicaid.--For the period that begins with the 1st 
month that begins 90 or more days after the date of the enactment of 
this Act and ends on September 30, 1996, an individual shall be 
considered to be an eligible individual for purposes of the 
supplemental security income program established under title XVI of the 
Social Security Act if the individual--
            (1) has not attained 18 years of age;
            (2) meets the requirements of section 1614(a)(3)(A)(ii)(II) 
        of such Act and all non-disability related requirements for 
        eligibility for supplemental security income benefits under 
        such title XVI;
            (3) resides in a State that, pursuant to section 1902(f) of 
        such Act, restricts eligibility for medical assistance under 
        title XIX of such Act with respect to aged, blind, and disabled 
        individuals; and
            (4) is not eligible for medical assistance under the State 
        plan under such title XIX.
    (f) Reduction in Cash Benefits Payable to Institutionalized 
Children Whose Medical Costs Are Covered by Private Insurance.--Section 
1611(e)(1)(B) of the Social Security Act (42 U.S.C. 1382(e)(1)(B)) is 
amended by inserting ``or under any health insurance policy issued by a 
private provider of such insurance'' after ``title XIX''.
    (g) Applicability.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by subsections (a)(1), (c), (d) and (f) and 
        section 1645(b)(2) of the Social Security Act (as added by the 
        amendment made by subsection (b) of this section), shall apply 
        to benefits for months beginning 90 or more days after the date 
        of the enactment of this Act, without regard to whether 
        regulations have been issued to implement such amendments.
            (2) Delayed applicability to current ssi recipients of 
        eligibility restrictions.--The amendments made by subsection 
        (a)(1) shall not apply, during the first 6 months that begin 
        after the month in which this Act becomes law, to an individual 
        who is a recipient of cash supplemental security income 
        benefits under title XVI of the Social Security Act for the 
        month in which this Act becomes law.
    (h) Regulations.--Within 3 months after the date of the enactment 
of this Act--
            (1) the Commissioner of Social Security shall prescribe 
        such regulations as may be necessary to implement the 
        amendments made by subsections (a)(1), (c), (d), and (f) and to 
        implement subsection (e); and
            (2) the Secretary of Health and Human Services shall 
        prescribe such regulations as may be necessary to implement 
        section 1645(b)(2) of the Social Security Act, as added by the 
        amendment made by subsection (b) of this section.

SEC. 403. EXAMINATION OF MENTAL LISTINGS USED TO DETERMINE ELIGIBILITY 
              OF CHILDREN FOR SSI BENEFITS BY REASON OF DISABILITY.

    Section 202(e)(2) of the Social Security Independence and Program 
Improvements Act of 1994 (42 U.S.C. 1382 note) is amended--
            (1) by striking ``and'' at the end of subparagraph (F); and
            (2) by redesignating subparagraph (G) as subparagraph (H) 
        and inserting after subparagraph (F) the following:
                    ``(G) whether the criteria in the mental disorders 
                listings in the Listings of Impairments set forth in 
                appendix 1 of subpart P of part 404 of title 20, Code 
                of Federal Regulations, are appropriate to ensure that 
                eligibility of individuals who have not attained 18 
                years of age for cash benefits under the supplemental 
                security income program by reason of disability is 
                limited to those who have serious disabilities and for 
                whom such benefits are necessary to improve their 
                condition or quality of life; and''.

SEC. 404. LIMITATION ON PAYMENTS TO PUERTO RICO, THE VIRGIN ISLANDS, 
              AND GUAM UNDER PROGRAMS OF AID TO THE AGED, BLIND, OR 
              DISABLED.

    Section 1108 of the Social Security Act (42 U.S.C. 1308), as 
amended by section 104(f)(1) of this Act, is amended by inserting 
before ``The total'' the following:
    ``(a) Programs of Aid to the Aged, Blind, or Disabled.--The total 
amount certified by the Secretary of Health and Human Services under 
titles I, X, XIV, and XVI (as in effect without regard to the amendment 
made by section 301 of the Social Security Amendments of 1972)--
            ``(1) for payment to Puerto Rico shall not exceed 
        $18,053,940;
            ``(2) for payment to the Virgin Islands shall not exceed 
        $473,659; and
            ``(3) for payment to Guam shall not exceed $900,718.
    ``(b) Medicaid Programs.--''.

SEC. 405. REPEAL OF MAINTENANCE OF EFFORT REQUIREMENTS APPLICABLE TO 
              OPTIONAL STATE PROGRAMS FOR SUPPLEMENTATION OF SSI 
              BENEFITS.

    Section 1618 of the Social Security Act (42 U.S.C. 1382g) is hereby 
repealed.

                         TITLE V--CHILD SUPPORT

SEC. 500. REFERENCES.

    Except as otherwise specifically provided, wherever in this title 
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.

Subtitle A--Case Registries, Eligibility for Services, and Distribution 
                              of Payments

SEC. 501. CASE REGISTRIES; STATE OBLIGATION TO PROVIDE CHILD SUPPORT 
              ENFORCEMENT SERVICES.

    (a) Required Procedures.--Section 466(a) (42 U.S.C. 666(a)) is 
amended by adding at the end the following:
            ``(12) Use of state case registry and disbursement unit.--
        Procedures under which the State shall establish and operate a 
        State case registry in accordance with section 454A(e) and a 
        State disbursement unit in accordance with section 454B.''.
    (b) State Plan Requirements.--Section 454 (42 U.S.C. 654) is 
amended--
            (1) by striking paragraph (4) and inserting the following:
            ``(4) provide that the State will--
                    ``(A) provide services relating to the 
                establishment of paternity or the establishment, 
                modification, or enforcement of child support 
                obligations, as appropriate, under the plan with 
                respect to--
                            ``(i) each child for whom cash assistance 
                        is provided under the State program funded 
                        under part A of this title, benefits or 
                        services are provided under the State program 
                        funded under part B of this title, or medical 
                        assistance is provided under the State plan 
                        approved under title XIX, unless the State 
                        agency administering the plan determines (in 
                        accordance with paragraph (27)) that it is 
                        against the best interests of the child to do 
                        so; and
                            ``(ii) any other child, if an individual 
                        applies for such services with respect to the 
                        child; and
                    ``(B) enforce any support obligation established 
                with respect to--
                            ``(i) a child with respect to whom the 
                        State provides services under the plan; or
                            ``(ii) the custodial parent of such a 
                        child.''; and
            (2) in paragraph (6)--
                    (A) by striking subparagraph (A) and inserting the 
                following:
                    ``(A) services under the plan shall be made 
                available to nonresidents on the same terms as to 
                residents;'';
                    (B) in subparagraph (B), by inserting ``on 
                individuals not receiving assistance under any State 
                program funded under part A'' after ``such services 
                shall be imposed'';
                    (C) in each of subparagraphs (B), (C), and (D)--
                            (i) by indenting the subparagraph in the 
                        same manner as, and aligning the left margin of 
                        the subparagraph with the left margin of, the 
                        matter inserted by subparagraph of this 
                        paragraph; and
                            (ii) by striking the final comma and 
                        inserting a semicolon; and
                    (D) in subparagraph (E), by indenting each of 
                clauses (i) and (ii) 2 additional ems.
    (c) Conforming Amendments.--
            (1) Section 452(b) (42 U.S.C. 652(b)) is amended by 
        striking ``454(6)'' and inserting ``454(4)''.
            (2) Section 452(g)(2)(A) (42 U.S.C. 652(g)(2)(A)) is 
        amended by striking ``454(6)'' each place it appears and 
        inserting ``454(4)(A)(ii)''.
            (3) Section 466(a)(3)(B) (42 U.S.C. 666(a)(3)(B)) is 
        amended by striking ``in the case of overdue support which a 
        State has agreed to collect under section 454(6)'' and 
        inserting ``in any other case''.
            (4) Section 466(e) (42 U.S.C. 666(e)) is amended by 
        striking ``paragraph (4) or (6) of section 454'' and inserting 
        ``section 454(4)''.

SEC. 502. DISTRIBUTION OF CHILD SUPPORT COLLECTIONS.

    (a) In General.--Section 457 (42 U.S.C. 657) is amended to read as 
follows:

``SEC. 457. DISTRIBUTION OF COLLECTED SUPPORT.

    ``(a) In General.--An amount collected on behalf of a family as 
support by a State pursuant to a plan approved under this part shall be 
distributed as follows:
            ``(1) Families receiving assistance under state program 
        funded under part a.--In the case of a family receiving 
        assistance under the State program funded under part A, the 
        State shall--
                    ``(A) retain, or distribute to the family, the 
                State share of the amount; and
                    ``(B) pay to the Federal Government the Federal 
                share of the amount.
            ``(2) Families that formerly received assistance under 
        state program funded under part a.--In the case of a family 
        that formerly received assistance under the State program 
        funded under part A:
                    ``(A) Current support payments.--To the extent that 
                the amount does not exceed the amount required to be 
                paid to the family for the month in which collected, 
                the State shall distribute the amount to the family.
                    ``(B) Payments of arrearages.--To the extent that 
                the amount exceeds the amount required to be paid to 
                the family for the month in which collected, the State 
                shall distribute the amount as follows:
                            ``(i) Distribution to the family to satisfy 
                        arrearages that accrued before or after the 
                        family received assistance.--The State shall 
                        distribute the amount to the family to the 
                        extent necessary to satisfy any support arrears 
                        with respect to the family that accrued before 
                        or after the family received assistance under 
                        the State program funded under part A or the 
                        State plan approved under part A of this title 
                        (as in effect before October 1, 1996).
                            ``(ii) Reimbursement of governments for 
                        assistance provided to the family.--To the 
                        extent that clause (i) does not apply to the 
                        amount, the State shall retain the State share 
                        of the amount, and pay to the Federal 
                        Government the Federal share of the amount, to 
                        the extent necessary to reimburse amounts paid 
                        to the family as assistance under the State 
                        program funded under part A or as aid to 
                        families with dependent children under the 
                        State plan approved under part A of this title 
                        (as in effect before October 1, 1996).
                            ``(iii) Distribution of the remainder to 
                        the family.--To the extent that neither clause 
                        (i) nor clause (ii) applies to the amount, the 
                        State shall distribute the amount to the 
                        family.
            ``(3) Families that never received assistance.--In the case 
        of any other family, the State shall distribute the amount to 
        the family.
    ``(b) Definitions.--As used in subsection (a):
            ``(1) Federal share.--The term `Federal share' means, with 
        respect to a State, the greatest Federal medical assistance 
        percentage in effect for the State for fiscal year 1995 or any 
        succeeding fiscal year.
            ``(2) Federal medical assistance percentage.--The term 
        `Federal medical assistance percentage' means--
                    ``(A) the Federal medical assistance percentage (as 
                defined in section 1118), in the case of Puerto Rico, 
                the Virgin Islands, Guam, and American Samoa; or
                    ``(B) the Federal medical assistance percentage (as 
                defined in section 1905(b)) in the case of any other 
                State.
            ``(3) State share.--The term `State share' means 100 
        percent minus the Federal share.
    ``(c) Continuation of Services for Families Ceasing To Receive 
Assistance Under the State Program Funded Under Part A.--When a family 
with respect to which services are provided under a State plan approved 
under this part ceases to receive assistance under the State program 
funded under part A, the State shall provide appropriate notice to the 
family and continue to provide such services, subject to the same 
conditions and on the same basis as in the case of individuals to whom 
services are furnished under section 454, except that an application or 
other request to continue services shall not be required of such a 
family and section 454(6)(B) shall not apply to the family.''.
    (b) Effective Date.--
            (1) General rule.--Except as provided in paragraph (2), the 
        amendment made by subsection (a) shall become effective on 
        October 1, 1997.
            (2) Earlier effective date for rules relating to 
        distribution of support collected for families receiving 
        temporary family assistance.--Section 457(a)(1) of the Social 
        Security Act, as added by the amendment made by subsection (a), 
        shall become effective on October 1, 1996.

SEC. 503. PRIVACY SAFEGUARDS.

    (a) State Plan Requirement.--Section 454 (42 U.S.C. 454) 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 adding after paragraph (24) the following:
            ``(25) will have in effect safeguards, applicable to all 
        confidential information handled by the State agency, that are 
        designed to protect the privacy rights of the parties, 
        including--
                    ``(A) safeguards against unauthorized use or 
                disclosure of information relating to proceedings or 
                actions to establish paternity, or to establish or 
                enforce support;
                    ``(B) prohibitions against the release of 
                information on the whereabouts of one party to another 
                party against whom a protective order with respect to 
                the former party has been entered; and
                    ``(C) prohibitions against the release of 
                information on the whereabouts of one party to another 
                party if the State has reason to believe that the 
                release of the information may result in physical or 
                emotional harm to the former party.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
become effective on October 1, 1997.

                  Subtitle B--Locate and Case Tracking

SEC. 511. STATE CASE REGISTRY.

    Section 454A, as added by section 545(a)(2) of this Act, is amended 
by adding at the end the following:
    ``(e) State Case Registry of Child Support Orders.--
            ``(1) Contents.--The automated system required by this 
        section shall include a registry (which shall be known as the 
        `State case registry') that contains records with respect to--
                    ``(A) each case in which services are being 
                provided by the State agency under the State plan 
                approved under this part; and
                    ``(B) each support order established or modified in 
                the State on or after October 1, 1998.
            ``(2) Linking of local registries.--The State case registry 
        may be established by linking local case registries of support 
        orders through an automated information network, subject to 
        this section.
            ``(3) Use of standardized data elements.--Such records 
        shall use standardized data elements for both parents (such as 
        names, social security numbers and other uniform identification 
        numbers, dates of birth, and case identification numbers), and 
        contain such other information (such as on case status) as the 
        Secretary may require.
            ``(4) Payment records.--Each case record in the State case 
        registry with respect to which services are being provided 
        under the State plan approved under this part and with respect 
        to which a support order has been established shall include a 
        record of--
                    ``(A) the amount of monthly (or other periodic) 
                support owed under the order, and other amounts 
                (including arrears, interest or late payment penalties, 
                and fees) due or overdue under the order;
                    ``(B) any amount described in subparagraph (A) that 
                has been collected;
                    ``(C) the distribution of such collected amounts;
                    ``(D) the birth date of any child for whom the 
                order requires the provision of support; and
                    ``(E) the amount of any lien imposed pursuant to 
                section 466(a)(4).
            ``(5) Updating and monitoring.--The State agency operating 
        the automated system required by this section shall promptly 
        establish and maintain, and regularly monitor, case records in 
        the State case registry with respect to which services are 
        being provided under the State plan approved under this part, 
        on the basis of--
                    ``(A) information on administrative actions and 
                administrative and judicial proceedings and orders 
                relating to paternity and support;
                    ``(B) information obtained from comparison with 
                Federal, State, or local sources of information;
                    ``(C) information on support collections and 
                distributions; and
                    ``(D) any other relevant information.
    ``(f) Information Comparisons and Other Disclosures of 
Information.--The State shall use the automated system required by this 
section to extract information from (at such times, and in such 
standardized format or formats, as may be required by the Secretary), 
to share and compare information with, and to receive information from, 
other data bases and information comparison services, in order to 
obtain (or provide) information necessary to enable the State agency 
(or the Secretary or other State or Federal agencies) to carry out this 
part, subject to section 6103 of the Internal Revenue Code of 1986. 
Such information comparison activities shall include the following:
            ``(1) Federal case registry of child support orders.--
        Furnishing to the Federal Case Registry of Child Support Orders 
        established under section 453(h) (and update as necessary, with 
        information including notice of expiration of orders) the 
        minimum amount of information on child support cases recorded 
        in the State case registry that is necessary to operate the 
        registry (as specified by the Secretary in regulations).
            ``(2) Federal parent locator service.--Exchanging 
        information with the Federal Parent Locator Service for the 
        purposes specified in section 453.
            ``(3) Temporary family assistance and medicaid agencies.--
        Exchanging information with State agencies (of the State and of 
        other States) administering programs funded under part A, 
        programs operated under State plans under title XIX, and other 
        programs designated by the Secretary, as necessary to perform 
        State agency responsibilities under this part and under such 
        programs.
            ``(4) Intra- and interstate information comparisons.--
        Exchanging information with other agencies of the State, 
        agencies of other States, and interstate information networks, 
        as necessary and appropriate to carry out (or assist other 
        States to carry out) the purposes of this part.''.

SEC. 512. COLLECTION AND DISBURSEMENT OF SUPPORT PAYMENTS.

    (a) State Plan Requirement.--Section 454 (42 U.S.C. 654), as 
amended by section 503(a) of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (24);
            (2) by striking the period at the end of paragraph (25) and 
        inserting ``; and''; and
            (3) by adding after paragraph (25) the following:
            ``(26) provide that, on and after October 1, 1998, the 
        State agency will--
                    ``(A) operate, in accordance with section 454B, a 
                State disbursement unit for the collection and 
                disbursement of child support under support orders 
                being enforced under this part; and
                    ``(B) have sufficient State staff (consisting of 
                State employees) and (at State option) contractors 
                reporting directly to the State agency to--
                            ``(i) monitor and enforce support 
                        collections through the unit (including 
                        carrying out the automated data processing 
                        responsibilities described in section 454A(g)); 
                        and
                            ``(ii) take the actions described in 
                        section 466(c)(1) in appropriate cases.''.
    (b) Establishment of State Disbursement Unit.--Part D of title IV 
(42 U.S.C. 651-669) is amended by inserting after section 454A the 
following:

``SEC. 454B. COLLECTION AND DISBURSEMENT OF SUPPORT PAYMENTS.

    ``(a) State Disbursement Unit.--
            ``(1) In general.--In order to meet the requirement of 
        section 454(26) on and after October 1, 1998, the State agency 
        must establish and operate a unit (which shall be known as the 
        `State disbursement unit') for the collection and 
disbursement of payments under support orders in all cases being 
enforced by the State pursuant to section 454(4).
            ``(2) Operation.--The State disbursement unit shall be 
        operated--
                    ``(A) directly by the State agency (or 2 or more 
                State agencies under a regional cooperative agreement), 
                or (to the extent appropriate) by a contractor 
                responsible directly to the State agency; and
                    ``(B) in coordination with the automated system 
                established by the State pursuant to section 454A.
            ``(3) Linking of local disbursement units.--The State 
        disbursement unit may be established by linking local 
        disbursement units through an automated information network, 
        subject to this section.
    ``(b) Required Procedures.--The State disbursement unit shall use 
automated procedures, electronic processes, and computer-driven 
technology to the maximum extent feasible, efficient, and economical, 
for the collection and disbursement of support payments, including 
procedures--
            ``(1) for receipt of payments from parents, employers, and 
        other States, and for disbursements to custodial parents and 
        other obligees, the State agency, and the agencies of other 
        States;
            ``(2) for accurate identification of payments;
            ``(3) to ensure prompt disbursement of the custodial 
        parent's share of any payment; and
            ``(4) to furnish to any parent, upon request, timely 
        information on the current status of support payments under an 
        order requiring payments to be made by or to the parent.''.
    ``(c) Timing of Disbursements.--The State disbursement unit shall 
distribute all amounts payable under section 457(a) within 2 business 
days after receipt from the employer or other source of periodic 
income, if sufficient information identifying the payee is provided.
    ``(d) Business Day Defined.--As used in this section, the term 
`business day' means a day on which State offices are open for regular 
business.''.
    (c) Use of Automated System.--Section 454A, as added by section 
545(a)(2) of this Act and as amended by section 511 of this Act, is 
amended by adding at the end the following:
    ``(g) Collection and Distribution of Support Payments.--
            ``(1) In general.--The State shall use the automated system 
        required by this section, to the maximum extent feasible, to 
        assist and facilitate the collection and disbursement of 
        support payments through the State disbursement unit operated 
        under section 454B, through the performance of functions, 
        including, at a minimum--
                    ``(A) transmission of orders and notices to 
                employers (and other debtors) for the withholding of 
                wages (and other income)--
                            ``(i) within 2 business days after receipt 
                        (from a court, another State, an employer, the 
                        Federal Parent Locator Service, or another 
                        source recognized by the State) of notice of, 
                        and the income source subject to, such 
                        withholding; and
                            ``(ii) using uniform formats prescribed by 
                        the Secretary;
                    ``(B) ongoing monitoring to promptly identify 
                failures to make timely payment of support; and
                    ``(C) automatic use of enforcement procedures 
                (including procedures authorized pursuant to section 
                466(c)) where payments are not timely made.
            ``(2) Business day defined.--As used in paragraph (1), the 
        term `business day' means a day on which State offices are open 
        for regular business.''.
    (d) Effective Date.--The amendments made by this section shall 
become effective on October 1, 1998.

SEC. 513. STATE DIRECTORY OF NEW HIRES.

    Part D of title IV (42 U.S.C. 651-669) is amended by inserting 
after section 453 the following:

``SEC. 453A. STATE DIRECTORY OF NEW HIRES.

    ``(a) Establishment.--
            ``(1) In general.--Not later than October 1, 1997, each 
        State shall establish an automated directory (to be known as 
        the `State Directory of New Hires') which shall contain 
        information supplied in accordance with subsection (b) by 
        employers and labor organizations on each newly hired employee.
            ``(2) Definitions.--As used in this section:
                    ``(A) Employee.--The term `employee'--
                            ``(i) means an individual who is an 
                        employee within the meaning of chapter 24 of 
                        the Internal Revenue Code of 1986; and
                            ``(ii) does not include an employee of a 
                        Federal or State agency performing intelligence 
                        or counterintelligence functions, if the head 
                        of such agency has determined that reporting 
                        pursuant to paragraph (1) with respect to the 
                        employee could endanger the safety of the 
                        employee or compromise an ongoing investigation 
                        or intelligence mission.
                    ``(B) Governmental employers.--The term `employer' 
                includes any governmental entity.
                    ``(C) Labor organization.--The term `labor 
                organization' shall have the meaning given such term in 
                section 2(5) of the National Labor Relations Act), and 
                includes any entity (also known as a `hiring hall') 
                which is used by the organization and an employer to 
                carry out requirements described in section 8(f)(3) of 
                such Act of an agreement between the organization and 
                the employer.
    ``(b) Employer Information.--
            ``(1) Reporting requirement.--Each employer shall furnish 
        to the Directory of New Hires of the State in which a newly 
        hired employee works a report that contains the name, address, 
        and social security number of the employee, and the name of, 
        and identifying number assigned under section 6109 of the 
        Internal Revenue Code of 1986 to, the employer.
            ``(2) Timing of report.--The report required by paragraph 
        (1) with respect to an employee shall be made not later than 
        the later of--
                    ``(A) 15 days after the date the employer hires the 
                employee; or
                    ``(B) the date the employee first receives wages or 
                other compensation from the employer.
    ``(c) Reporting Format and Method.--Each report required by 
subsection (b) shall be made on a W-4 form or the equivalent, and may 
be transmitted by first class mail, magnetically, or electronically.
    ``(d) Civil Money Penalties on Noncomplying Employers.--
            ``(1) In general.--An employer that fails to comply with 
        subsection (b) with respect to an employee shall be subject to 
        a civil money penalty of--
                    ``(A) $25; or
                    ``(B) $500 if, under State law, the failure is the 
                result of a conspiracy between the employer and the 
                employee to not supply the required report or to supply 
                a false or incomplete report.
            ``(2) Applicability of section 1128.--Section 1128 (other 
        than subsections (a) and (b) thereof) shall apply to a civil 
        money penalty under paragraph (1) of this subsection in the 
        same manner as such section applies to a civil money penalty or 
        proceeding under section 1128A(a).
    ``(e) Information Comparisons.--
            ``(1) In general.--Not later than October 1, 1997, an 
        agency designated by the State shall, directly or by contract, 
        conduct automated comparisons of the social security numbers 
        reported by employers pursuant to subsection (b) and the social 
        security numbers appearing in the records of the State case 
        registry.
            ``(2) Notice of match.--When an information comparison 
        conducted under paragraph (1) reveals a match with respect to 
        the social security number of an individual required to provide 
        support under a support order, the State Directory of New Hires 
        shall provide the agency administering the State plan approved 
        under this part of the appropriate State with the name, 
        address, and social security number of the employee to whom the 
        social security number is assigned, and the name of, and 
        identifying number assigned under section 6109 of the Internal 
        Revenue Code of 1986 to, the employer.
    ``(g) Transmission of Wage Withholding Notices.--
            ``(1) In general.--Within 2 business days after the date 
        information regarding a newly hired employee is entered into 
        the State Directory of New Hires, the State agency enforcing 
        the employee's child support obligation shall transmit a notice 
        to the employer of the employee directing the employer to 
        withhold from the wages of the employee an amount equal to the 
        monthly (or other periodic) child support obligation of the 
        employee, unless the employee's wages are not subject to 
        withholding pursuant to section 466(b)(3).
            ``(2) Business day defined.--As used in paragraph (1) and 
        subsection (h), the term `business day' means a day on which 
        State offices are open for regular business.
    ``(h) Transmission of Information to the National Directory of New 
Hires.--
            ``(1) In general.--Within 4 business days after the State 
        Directory of New Hires receives information from employers 
        pursuant to this section, the State Directory of New Hires 
        shall furnish the information to the National Directory of New 
        Hires.
            ``(2) Wage and unemployment compensation information.--The 
        State Directory of New Hires shall, on a quarterly basis, 
        furnish to the National Directory of New Hires extracts of the 
        reports required under section 303(a)(6) to be made to the 
        Secretary of Labor concerning the wages and unemployment 
        compensation paid to individuals, by such dates, in such 
        format, and containing such information as the Secretary of 
        Health and Human Services shall specify in regulations.
    ``(i) Other Uses of New Hire Information.--
            ``(1) Location of child support obligors.--The agency 
        administering the State plan approved under this part shall use 
        information received pursuant to subsection (f) to locate 
        individuals for purposes of establishing paternity and 
        establishing, modifying, and enforcing child support 
        obligations.
            ``(2) Verification of eligibility for certain programs.--A 
        State agency responsible for administering a program specified 
        in section 1137(b) shall have access to information reported by 
        employers pursuant to subsection (b) of this section for 
        purposes of verifying eligibility for the program.
            ``(3) Administration of employment security and workers 
        compensation.--State agencies operating employment security and 
        workers' compensation programs shall have access to information 
        reported by employers pursuant to subsection (b) for the 
        purposes of administering such programs.''.

SEC. 514. AMENDMENTS CONCERNING INCOME WITHHOLDING.

    (a) Mandatory Income Withholding.--
            (1) In general.--Section 466(a)(1) (42 U.S.C. 666(a)(1)) is 
        amended to read as follows:
            ``(1) Income withholding.--
                    ``(A) Under orders enforced under the state plan.--
                Procedures described in subsection (b) for the 
                withholding from income of amounts payable as support 
                in cases subject to enforcement under the State plan.
                    ``(B) Under certain orders predating change in 
                requirement.--Procedures under which the wages of a 
                person with a support obligation imposed by a support 
                order issued (or modified) in the State before October 
                1, 1996, if not otherwise subject to withholding under 
                subsection (b), shall become subject to withholding as 
                provided in subsection (b) if arrearages occur, without 
                the need for a judicial or administrative hearing.''.
    (2) Conforming amendments.--
                    (A) Section 466(b) (42 U.S.C. 666(b)) is amended in 
                the matter preceding paragraph (1), by striking 
                ``subsection (a)(1)'' and inserting ``subsection 
                (a)(1)(A)''.
                    (B) Section 466(b)(5) (42 U.S.C. 666(b)(5)) is 
                amended by striking all that follows ``administered 
                by'' and inserting ``the State through the State 
                disbursement unit established pursuant to section 454B, 
                in accordance with the requirements of section 454B.''.
                    (C) Section 466(b)(6)(A) (42 U.S.C. 666(b)(6)(A)) 
                is amended--
                            (i) in clause (i), by striking ``to the 
                        appropriate agency'' and all that follows and 
                        inserting ``to the State disbursement unit 
                        within 2 business days after the date the 
                        amount would (but for this subsection) have 
                        been paid or credited to the employee, for 
                        distribution in accordance with this part.'';
                            (ii) in clause (ii), by inserting ``be in a 
                        standard format prescribed by the Secretary, 
                        and'' after ``shall''; and
                            (iii) by adding at the end the following:
    ``(iii) As used in this subparagraph, the term `business day' means 
a day on which State offices are open for regular business.''.
                    (D) Section 466(b)(6)(D) (42 U.S.C. 666(b)(6)(D)) 
                is amended by striking ``any employer'' and all that 
                follows and inserting the following:
        ``any employer who--
                    ``(i) discharges from employment, refuses to 
                employ, or takes disciplinary action against any absent 
                parent subject to wage withholding required by this 
                subsection because of the existence of such withholding 
                and the obligations or additional obligations which is 
                imposes upon the employer; or
                    ``(ii) fails to withhold support from wages, or to 
                pay such amounts to the State disbursement unit in 
                accordance with this subsection.''.
                    (E) Section 466(b) (42 U.S.C. 666(b)) is amended by 
                adding at the end the following:
            ``(11) Procedures under which the agency administering the 
        State plan approved under this part may execute a withholding 
        order through electronic means and without advance notice to 
        the obligor.''.
    (b) Conforming Amendment.--Section 466(c) (42 U.S.C. 666(c)) is 
repealed.

SEC. 515. LOCATOR INFORMATION FROM INTERSTATE NETWORKS.

    Section 466(a) (42 U.S.C. 666(a)), as amended by section 501(a) of 
this Act, is amended by adding at the end the following:
            ``(13) Locator information from interstate networks.--
        Procedures to ensure that all Federal and State agencies 
        conducting activities under this part have access to any system 
        used by the State to locate an individual for purposes relating 
        to motor vehicles or law enforcement.''.

SEC. 516. EXPANDED FEDERAL PARENT LOCATOR SERVICE.

    (a) Expanded Authority to Locate Individuals and Assets.--Section 
453 (42 U.S.C. 653) is amended--
            (1) in subsection (a), by striking all that follows 
        ``subsection (c))'' and inserting ``, for the purpose of 
        establishing parentage, establishing, setting the amount of, 
        modifying, or enforcing child support obligations--
            ``(1) information on, or facilitating the discovery of, the 
        location of any individual--
                    ``(A) who is under an obligation to pay child 
                support;
                    ``(B) against whom such an obligation is sought; or
                    ``(C) to whom such an obligation is owed,
        including the individual's social security number (or numbers), 
        most recent address, and the name, address, and employer 
        identification number of the individual's employer; and
            ``(2) information on the individual's wages (or other 
        income) from, and benefits of, employment (including rights to 
        or enrollment in group health care coverage).''; and
            (2) in subsection (b), in the matter preceding paragraph 
        (1), by striking ``social security'' and all that follows 
        through ``absent parent'' and inserting ``information described 
        in subsection (a)''.
    (b) Reimbursement for Information From Federal Agencies.--Section 
453(e)(2) (42 U.S.C. 653(e)(2)) is amended in the 4th sentence by 
inserting ``in an amount which the Secretary determines to be 
reasonable payment for the information exchange (which amount shall not 
include payment for the costs of obtaining, compiling, or maintaining 
the information)'' before the period.
    (c) Reimbursement for Reports by State Agencies.--Section 453 (42 
U.S.C. 653) is amended by adding at the end the following:
    ``(g) The Secretary may reimburse Federal and State agencies for 
the costs incurred by such entities in furnishing information requested 
by the Secretary under this section in an amount which the Secretary 
determines to be reasonable payment for the information exchange (which 
amount shall not include payment for the costs of obtaining, compiling, 
or maintaining the information).''.
    (d) Technical Amendments.--
            (1) Sections 452(a)(9), 453(a), 453(b), 463(a), and 463(e) 
        (42 U.S.C. 652(a)(9), 653(a), 653(b), 663(a), and 663(e)) are 
        each amended by inserting ``Federal'' before ``Parent'' each 
        place such term appears.
            (2) Section 453 (42 U.S.C. 653) is amended in the heading 
        by adding ``federal'' before ``parent''.
    (e) New Components.--Section 453 (42 U.S.C. 653), as amended by 
subsection (c)(2) of this section, is amended by adding at the end the 
following:
    ``(h) Federal Case Registry of Child Support Orders.--
            ``(1) In general.--Not later than October 1, 1998, in order 
        to assist States in administering programs under State plans 
        approved under this part and programs funded under part A, and 
        for the other purposes specified in this section, the Secretary 
        shall establish and maintain in the Federal Parent Locator 
        Service an automated registry (which shall be known as the 
        `Federal Case Registry of Child Support Orders'), which shall 
        contain abstracts of support orders and other information 
        described in paragraph (2) with respect to each case in each 
        State case registry maintained pursuant to section 454A(e), as 
        furnished (and regularly updated), pursuant to section 454A(f), 
        by State agencies administering programs under this part.
            ``(2) Case information.--The information referred to in 
        paragraph (1) with respect to a case shall be such information 
        as the Secretary may specify in regulations (including the 
        names, social security numbers or other uniform identification 
        numbers, and State case identification numbers) to identify the 
        individuals who owe or are owed support (or with respect to or 
        on behalf of whom support obligations are sought to be 
        established), and the State or States which have the case.
    ``(i) National Directory of New Hires.--
            ``(1) In general.--In order to assist States in 
        administering programs under State plans approved under this 
        part and programs funded under part A, and for the other 
        purposes specified in this section, the Secretary shall, not 
        later than October 1, 1996, establish and maintain in the 
        Federal Parent Locator Service an automated directory to be 
        known as the National Directory of New Hires, which shall 
        contain the information supplied pursuant to section 453A(h).
            ``(2) Administration of federal tax laws.--The Secretary of 
        the Treasury shall have access to the information in the 
        Federal Directory of New Hires for purposes of administering 
        section 32 of the Internal Revenue Code of 1986, or the advance 
        payment of the earned income tax credit under section 3507 of 
        such Code, and verifying a claim with respect to employment in 
        a tax return.
    ``(j) Information Comparisons and Other Disclosures.--
            ``(1) Verification by social security administration.--
                    ``(A) The Secretary shall transmit information on 
                individuals and employers maintained under this section 
                to the Social Security Administration to the extent 
                necessary for verification in accordance with 
                subparagraph (B).
                    ``(B) The Social Security Administration shall 
                verify the accuracy of, correct, or supply to the 
                extent possible, and report to the Secretary, the 
                following information supplied by the Secretary 
                pursuant to subparagraph (A):
                            ``(i) The name, social security number, and 
                        birth date of each such individual.
                            ``(ii) The employer identification number 
                        of each such employer.
            ``(2) Information comparisons.--For the purpose of locating 
        individuals in a paternity establishment case or a case 
        involving the establishment, modification, or enforcement of a 
        support order, the Secretary shall--
                    ``(A) compare information in the National Directory 
                of New Hires against information in the support order 
                abstracts in the Federal Case Registry of Child Support 
                Orders not less often than every 2 business days; and
                    ``(B) within 2 such days after such a comparison 
                reveals a match with respect to an individual, report 
                the information to the State agency responsible for the 
                case.
            ``(3) Information comparisons and disclosures of 
        information in all registries for title iv program purposes.--
        To the extent and with the frequency that the Secretary 
        determines to be effective in assisting States to carry out 
        their responsibilities under programs operated under this part 
        and programs funded under part A, the Secretary shall--
                    ``(A) compare the information in each component of 
                the Federal Parent Locator Service maintained under 
                this section against the information in each other such 
                component (other than the comparison required by 
                paragraph (2)), and report instances in which such a 
                comparison reveals a match with respect to an 
                individual to State agencies operating such programs; 
                and
                    ``(B) disclose information in such registries to 
                such State agencies.
            ``(4) Provision of new hire information to the social 
        security administration.--The National Directory of New Hires 
        shall provide the Commissioner of Social Security with all 
        information in the National Directory, which shall be used to 
        determine the accuracy of payments under the supplemental 
        security income program under title XVI and in connection with 
        benefits under title II.
            ``(5) Research.--The Secretary may provide access to 
        information reported by employers pursuant to section 453A(b) 
        for research purposes found by the Secretary to be likely to 
        contribute to achieving the purposes of part A or this part, 
        but without personal identifiers.
    ``(k) Fees.--
            ``(1) For ssa verification.--The Secretary shall reimburse 
        the Commissioner of Social Security, at a rate negotiated 
        between the Secretary and the Commissioner, for the costs 
        incurred by the Commissioner in performing the verification 
        services described in subsection (j).
            ``(2) For information from state directories of new 
        hires.--The Secretary shall reimburse costs incurred by State 
        directories of new hires in furnishing information as required 
        by subsection (j)(3), at rates which the Secretary determines 
        to be reasonable (which rates shall not include payment for the 
        costs of obtaining, compiling, or maintaining such 
        information).
            ``(3) For information furnished to state and federal 
        agencies.--A State or Federal agency that receives information 
        from the Secretary pursuant to this section shall reimburse the 
        Secretary for costs incurred by the Secretary in furnishing the 
        information, at rates which the Secretary determines to be 
        reasonable (which rates shall include payment for the costs of 
        obtaining, verifying, maintaining, and comparing the 
        information).
    ``(l) Restriction on Disclosure and Use.--Information in the 
Federal Parent Locator Service, and information resulting from 
comparisons using such information, shall not be used or disclosed 
except as expressly provided in this section, subject to section 6103 
of the Internal Revenue Code of 1986.
    ``(m) Information Integrity and Security.--The Secretary shall 
establish and implement safeguards with respect to the entities 
established under this section designed to--
            ``(1) ensure the accuracy and completeness of information 
        in the Federal Parent Locator Service; and
            ``(2) restrict access to confidential information in the 
        Federal Parent Locator Service to authorized persons, and 
        restrict use of such information to authorized purposes.''.
    (g) Conforming Amendments.--
            (1) To part d of title iv of the social security act.--
        Section 454(8)(B) (42 U.S.C. 654(8)(B)) is amended to read as 
        follows:
                    ``(B) the Federal Parent Locator Service 
                established under section 453;''.
            (2) To federal unemployment tax act.--Section 3304(a)(16) 
        of the Internal Revenue Code of 1986 is amended--
                    (A) by striking ``Secretary of Health, Education, 
                and Welfare'' each place such term appears and 
                inserting ``Secretary of Health and Human Services'';
                    (B) in subparagraph (B), by striking ``such 
                information'' and all that follows and inserting 
                ``information furnished under subparagraph (A) or (B) 
                is used only for the purposes authorized under such 
                subparagraph;'';
                    (C) by striking ``and'' at the end of subparagraph 
                (A);
                    (D) by redesignating subparagraph (B) as 
                subparagraph (C); and
                    (E) by inserting after subparagraph (A) the 
                following new subparagraph:
                    ``(B) wage and unemployment compensation 
                information contained in the records of such agency 
                shall be furnished to the Secretary of Health and Human 
                Services (in accordance with regulations promulgated by 
                such Secretary) as necessary for the purposes of the 
                National Directory of New Hires established under 
                section 453(i) of the Social Security Act, and''.
            (3) To state grant program under title iii of the social 
        security act.--Section 303(a) (42 U.S.C. 503(a)) is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (8);
                    (B) by striking the period at the end of paragraph 
                (9) and inserting ``; and''; and
                    (C) by adding after paragraph (9) the following new 
                paragraph:
            ``(10) The making of quarterly electronic reports, at such 
        dates, in such format, and containing such information, as 
        required by the Secretary of Health and Human Services under 
        section 453(i)(3), and compliance with such provisions as such 
        Secretary may find necessary to ensure the correctness and 
        verification of such reports.''.

SEC. 517. COLLECTION AND USE OF SOCIAL SECURITY NUMBERS FOR USE IN 
              CHILD SUPPORT ENFORCEMENT.

    (a) State Law Requirement.--Section 466(a) (42 U.S.C. 666(a)), as 
amended by sections 501(a) and 515 of this Act, is amended by adding at 
the end the following:
            ``(14) Recording of social security numbers in certain 
        family matters.--Procedures requiring that the social security 
        number of--
                    ``(A) any applicant for a professional license, 
                commercial driver's license, occupational license, or 
                marriage license be recorded on the application; and
                    ``(B) any individual who is subject to a divorce 
                decree, support order, or paternity determination or 
                acknowledgment be placed in the records relating to the 
                matter.''.
    (b) Conforming Amendments.--Section 205(c)(2)(C) (42 U.S.C. 
405(c)(2)(C)), as amended by section 321(a)(9) of the Social Security 
Independence and Program Improvements Act of 1994, is amended--
            (1) in clause (i), by striking ``may require'' and 
        inserting ``shall require'';
            (2) in clause (ii), by inserting after the 1st sentence the 
        following: ``In the administration of any law involving the 
        issuance of a marriage certificate or license, each State shall 
        require each party named in the certificate or license to 
        furnish to the State (or political subdivision thereof) or any 
        State agency having administrative responsibility for the law 
        involved, the social security number of the party.'';
            (3) in clause (vi), by striking ``may'' and inserting 
        ``shall''; and
            (4) by adding at the end the following:
                            ``(ix) An agency of a State (or a political 
                        subdivision thereof) charged with the 
                        administration of any law concerning the 
                        issuance or renewal of a license, certificate, 
                        permit, or other authorization to engage in a 
                        profession, an occupation, or a commercial 
                        activity shall require all applicants for 
                        issuance or renewal of the license, 
                        certificate, permit, or other authorization to 
                        provide the applicant's social security number 
                        to the agency for the purpose of administering 
                        such laws, and for the purpose of responding to 
                        requests for information from an agency 
                        operating pursuant to part D of title IV.
                            ``(x) All divorce decrees, support orders, 
                        and paternity determinations issued, and all 
                        paternity acknowledgments made, in each State 
                        shall include the social security number of 
                        each party to the decree, order, determination, 
                        or acknowledgement in the records relating to 
                        the matter.''.

         Subtitle C--Streamlining and Uniformity of Procedures

SEC. 521. ADOPTION OF UNIFORM STATE LAWS.

    Section 466 (42 U.S.C. 666) is amended by adding at the end the 
following:
    ``(e) Uniform Interstate Family Support Act.--
            ``(1) Enactment and use.--In order to satisfy section 
        454(20)(A) on or after January 1, 1997, each State must have in 
        effect the Uniform Interstate Family Support Act, as approved 
        by the National Conference of Commissioners on Uniform State 
        Laws in August 1992 (with the modifications and additions 
        specified in this subsection), and the procedures required to 
        implement such Act.
            ``(2) Expanded application.--The State law enacted pursuant 
        to paragraph (1) shall be applied to any case involving an 
        order which is established or modified in a State and which is 
        sought to be modified or enforced in another State.
            ``(3) Jurisdiction to modify orders.--The State law enacted 
        pursuant to paragraph (1) of this subsection shall contain the 
        following provision in lieu of section 611(a)(1) of the Uniform 
        Interstate Family Support Act:
            ```(1) the following requirements are met:
            ```(i) the child, the individual obligee, and the obligor--
                    ```(I) do not reside in the issuing State; and
                    ```(II) either reside in this State or are subject 
                to the jurisdiction of this State pursuant to section 
                201; and
            ```(ii) (in any case where another State is exercising or 
        seeks to exercise jurisdiction to modify the order) the 
        conditions of section 204 are met to the same extent as 
        required for proceedings to establish orders; or'.
            ``(4) Service of process.--The State law enacted pursuant 
        to paragraph (1) shall provide that, in any proceeding subject 
        to the law, process may be served (and proved) upon persons in 
        the State by any means acceptable in any State which is the 
        initiating or responding State in the proceeding.''.

SEC. 522. IMPROVEMENTS TO FULL FAITH AND CREDIT FOR CHILD SUPPORT 
              ORDERS.

    Section 1738B of title 28, United States Code, is amended--
            (1) in subsection (a)(2), by striking ``subsection (e)'' 
        and inserting ``subsections (e), (f), and (i)'';
            (2) in subsection (b), by inserting after the 2nd 
        undesignated paragraph the following:
            ```child's home State' means the State in which a child 
        lived with a parent or a person acting as parent for at least 
        six consecutive months immediately preceding the time of filing 
        of a petition or comparable pleading for support and, if a 
        child is less than six months old, the State in which the child 
        lived from birth with any of them. A period of temporary 
        absence of any of them is counted as part of the six-month 
        period.'';
            (3) in subsection (c), by inserting ``by a court of a 
        State'' before ``is made'';
            (4) in subsection (c)(1), by inserting ``and subsections 
        (e), (f), and (g)'' after ``located'';
            (5) in subsection (d)--
                    (A) by inserting ``individual'' before 
                ``contestant''; and
                    (B) by striking ``subsection (e)'' and inserting 
                ``subsections (e) and (f)'';
            (6) in subsection (e), by striking ``make a modification of 
        a child support order with respect to a child that is made'' 
        and inserting ``modify a child support order issued'';
            (7) in subsection (e)(1), by inserting ``pursuant to 
        subsection (i)'' before the semicolon;
            (8) in subsection (e)(2)--
                    (A) by inserting ``individual'' before 
                ``contestant'' each place such term appears; and
                    (B) by striking ``to that court's making the 
                modification and assuming'' and inserting ``with the 
                State of continuing, exclusive jurisdiction for a court 
                of another State to modify the order and assume'';
            (9) by redesignating subsections (f) and (g) as subsections 
        (g) and (h), respectively;
            (10) by inserting after subsection (e) the following:
    ``(f) Recognition of Child Support Orders.--If one or more child 
support orders have been issued in this or another State with regard to 
an obligor and a child, a court shall apply the following rules in 
determining which order to recognize for purposes of continuing, 
exclusive jurisdiction and enforcement:
            ``(1) If only one court has issued a child support order, 
        the order of that court must be recognized.
            ``(2) If two or more courts have issued child support 
        orders for the same obligor and child, and only one of the 
        courts would have continuing, exclusive jurisdiction under this 
        section, the order of that court must be recognized.
            ``(3) If two or more courts have issued child support 
        orders for the same obligor and child, and only one of the 
        courts would have continuing, exclusive jurisdiction under this 
        section, an order issued by a court in the current home State 
        of the child must be recognized, but if an order has not been 
        issued in the current home State of the child, the order most 
        recently issued must be recognized.
            ``(4) If two or more courts have issued child support 
        orders for the same obligor and child, and none of the courts 
        would have continuing, exclusive jurisdiction under this 
        section, a court may issue a child support order, which must be 
        recognized.
            ``(5) The court that has issued an order recognized under 
        this subsection is the court having continuing, exclusive 
        jurisdiction.'';
            (11) in subsection (g) (as so redesignated)--
                    (A) by striking ``Prior'' and inserting 
                ``Modified''; and
                    (B) by striking ``subsection (e)'' and inserting 
                ``subsections (e) and (f)'';
            (12) in subsection (h) (as so redesignated)--
                    (A) in paragraph (2), by inserting ``including the 
                duration of current payments and other obligations of 
                support'' before the comma; and
                    (B) in paragraph (3), by inserting ``arrears 
                under'' after ``enforce''; and
            (13) by adding at the end the following:
    ``(i) Registration for Modification.--If there is no individual 
contestant or child residing in the issuing State, the party or support 
enforcement agency seeking to modify, or to modify and enforce, a child 
support order issued in another State shall register that order in a 
State with jurisdiction over the nonmovant for the purpose of 
modification.''.

SEC. 523. ADMINISTRATIVE ENFORCEMENT IN INTERSTATE CASES.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 501(a), 
515, and 517(a) of this Act, is amended by adding at the end the 
following:
            ``(15) Administrative enforcement in interstate cases.--
        Procedures under which--
                    ``(A)(i) the State shall respond within 5 business 
                days to a request made by another State to enforce a 
                support order; and
                    ``(ii) the term `business day' means a day on which 
                State offices are open for regular business;
                    ``(B) the State may, by electronic or other means, 
                transmit to another State a request for assistance in a 
                case involving the enforcement of a support order, 
                which request--
                            ``(i) shall include such information as 
                        will enable the State to which the request is 
                        transmitted to compare the information about 
                        the case to the information in the data bases 
                        of the State;
                            ``(ii) shall constitute a certification by 
                        the requesting State--
                                    ``(I) of the amount of support 
                                under the order the payment of which is 
                                in arrears; and
                                    ``(II) that the requesting State 
                                has complied with all procedural due 
                                process requirements applicable to the 
                                case.
                    ``(C) if the State provides assistance to another 
                State pursuant to this paragraph with respect to a 
                case, neither State shall consider the case to be 
                transferred to the caseload of such other State; and
                    ``(D) the State shall maintain records of--
            ``(i) the number of such requests for assistance received 
        by the State;
            ``(ii) the number of cases for which the State collected 
        support in response to such a request; and
            ``(iii) the amount of such collected support.''.

SEC. 524. USE OF FORMS IN INTERSTATE ENFORCEMENT.

    (a) Promulgation.--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 paragraph (10) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(11) not later than June 30, 1996, promulgate forms to be 
        used by States in interstate cases for--
                    ``(A) collection of child support through income 
                withholding;
                    ``(B) imposition of liens; and
                    ``(C) administrative subpoenas.''.
    (b) Use by States.--Section 454(9) (42 U.S.C. 654(9)) is amended--
            (1) by striking ``and'' at the end of subparagraph (C);
            (2) by inserting ``and'' at the end of subparagraph (D); 
        and
            (3) by adding at the end the following:
                    ``(E) no later than October 1, 1996, in using the 
                forms promulgated pursuant to section 452(a)(11) for 
                income withholding, imposition of liens, and issuance 
                of administrative subpoenas in interstate child support 
                cases;''.

SEC. 525. STATE LAWS PROVIDING EXPEDITED PROCEDURES.

    (a) State Law Requirements.--Section 466 (42 U.S.C. 666), as 
amended by section 514 of this Act, is amended--
            (1) in subsection (a)(2), by striking the 1st sentence and 
        inserting the following: ``Expedited administrative and 
        judicial procedures (including the procedures specified in 
        subsection (c)) for establishing paternity and for 
        establishing, modifying, and enforcing support obligations.''; 
        and
            (2) by inserting after subsection (b) the following:
    ``(c) Expedited Procedures.--The procedures specified in this 
subsection are the following:
            ``(1) Administrative action by state agency.--Procedures 
        which give the State agency the authority to take the following 
        actions relating to establishment or enforcement of support 
        orders, without the necessity of obtaining an order from any 
        other judicial or administrative tribunal (but subject to due 
        process safeguards, including (as appropriate) requirements for 
        notice, opportunity to contest the action, and opportunity for 
        an appeal on the record to an independent administrative or 
        judicial tribunal), and to recognize and enforce the authority 
        of State agencies of other States) to take the following 
        actions:
                    ``(A) Genetic testing.--To order genetic testing 
                for the purpose of paternity establishment as provided 
                in section 466(a)(5).
                    ``(B) Default orders.--To enter a default order, 
                upon a showing of service of process and any additional 
                showing required by State law--
                            ``(i) establishing paternity, in the case 
                        of a putative father who refuses to submit to 
                        genetic testing; and
                            ``(ii) establishing or modifying a support 
                        obligation, in the case of a parent (or other 
                        obligor or obligee) who fails to respond to 
                        notice to appear at a proceeding for such 
                        purpose.
                    ``(C) Subpoenas.--To subpoena any financial or 
                other information needed to establish, modify, or 
                enforce a support order, and to impose penalties for 
                failure to respond to such a subpoena.
                    ``(D) Access to personal and financial 
                information.--To obtain access, subject to safeguards 
                on privacy and information security, to the records of 
                all other State and local government agencies 
                (including law enforcement and corrections records), 
                including automated access to records maintained in 
                automated data bases.
                    ``(E) Change in payee.--In cases where support is 
                subject to an assignment in order to comply with a 
                requirement imposed pursuant to part A or section 1912, 
                or to a requirement to pay through the State 
                disbursement unit established pursuant to section 454B, 
                upon providing notice to obligor and obligee, to direct 
                the obligor or other payor to change the payee to the 
                appropriate government entity.
                    ``(F) Income withholding.--To order income 
                withholding in accordance with subsections (a)(1) and 
                (b) of section 466.
                    ``(G) Securing assets.--In cases in which there is 
                a support arrearage, to secure assets to satisfy the 
                arrearage by--
                            ``(i) intercepting or seizing periodic or 
                        lump sum payments from--
                                    ``(I) a State or local agency 
                                (including unemployment compensation, 
                                workers' compensation, and other 
                                benefits); and
                                    ``(II) judgments, settlements, and 
                                lotteries;
                            ``(ii) attaching and seizing assets of the 
                        obligor held in financial institutions; and
                            ``(iii) attaching public and private 
                        retirement funds.
                    ``(H) Increase monthly payments.--For the purpose 
                of securing overdue support, to increase the amount of 
                monthly support payments to include amounts for 
                arrearages (subject to such conditions or limitations 
                as the State may provide).
            ``(2) Substantive and procedural rules.--The expedited 
        procedures required under subsection (a)(2) shall include the 
        following rules and authority, applicable with respect to all 
        proceedings to establish paternity or to establish, modify, or 
        enforce support orders:
                    ``(A) Locator information; presumptions concerning 
                notice.--Procedures under which--
                            ``(i) each party to any paternity or child 
                        support proceeding is required (subject to 
                        privacy safeguards) to file with the tribunal 
                        and the State case registry upon entry of an 
                        order, and to update as appropriate, 
                        information on location and identity of the 
                        party (including social security number, 
                        residential and mailing addresses, telephone 
                        number, driver's license number, and name, 
                        address, and name and telephone number of 
                        employer); and
                            ``(ii) in any subsequent child support 
                        enforcement action between the parties, upon 
                        sufficient showing that diligent effort has 
                        been made to ascertain the location of such a 
                        party, the tribunal may deem State due process 
                        requirements for notice and service of process 
                        to be met with respect to the party, upon 
                        delivery of written notice to the most recent 
                        residential or employer address filed with the 
                        tribunal pursuant to clause (i).
                    ``(B) Statewide jurisdiction.--Procedures under 
                which--
                            ``(i) the State agency and any 
                        administrative or judicial tribunal with 
                        authority to hear child support and paternity 
                        cases exerts statewide jurisdiction over the 
                        parties; and
                            ``(ii) in a State in which orders are 
                        issued by courts or administrative tribunals, a 
                        case may be transferred between administrative 
                        areas in the State without need for any 
                        additional filing by the petitioner, or service 
                        of process upon the respondent, to retain 
                        jurisdiction over the parties.''.
    (b) Exceptions from State Law Requirements.--Section 466(d) (42 
U.S.C. 666(d)) is amended--
            (1) by striking ``(d) If'' and inserting the following:
    ``(d) Exemptions From Requirements.--
            ``(1) In general.--Subject to paragraph (2), if''; and
            (2) by adding at the end the following:
            ``(2) Non-exempt requirements.--The Secretary shall not 
        grant an exemption from the requirements of--
                    ``(A) subsection (a)(5) (concerning procedures for 
                paternity establishment);
                    ``(B) subsection (a)(10) (concerning modification 
                of orders);
                    ``(C) section 454A (concerning recording of orders 
                in the State case registry);
                    ``(D) subsection (a)(14) (concerning recording of 
                social security numbers);
                    ``(E) subsection (a)(15) (concerning interstate 
                enforcement); or
                    ``(F) subsection (c) (concerning expedited 
                procedures), other than paragraph (1)(A) thereof 
                (concerning establishment or modification of support 
                amount).''.
    (c) Automation of State Agency Functions.--Section 454A, as added 
by section 545(a)(2) of this Act and as amended by sections 511 and 
512(c) of this Act, is amended by adding at the end the following:
    ``(h) Expedited Administrative Procedures.--The automated system 
required by this section shall be used, to the maximum extent feasible, 
to implement the expedited administrative procedures required by 
section 466(c).''.

                  Subtitle D--Paternity Establishment

SEC. 531. STATE LAWS CONCERNING PATERNITY ESTABLISHMENT.

    (a) State Laws Required.--Section 466(a)(5) (42 U.S.C. 666(a)(5)) 
is amended to read as follows:
            ``(5) Procedures concerning paternity establishment.--
                    ``(A) Establishment process available from birth 
                until age 18.--
                            ``(i) Procedures which permit the 
                        establishment of the paternity of a child at 
                        any time before the child attains 18 years of 
                        age.
                            ``(ii) As of August 16, 1984, clause (i) 
                        shall also apply to a child for whom paternity 
                        has not been established or for whom a 
                        paternity action was brought but dismissed 
                        because a statute of limitations of less than 
                        18 years was then in effect in the State.
                    ``(B) Procedures concerning genetic testing.--
                            ``(i) Genetic testing required in certain 
                        contested cases.--Procedures under which the 
                        State is required, in a contested paternity 
                        case, to require the child and all other 
                        parties (other than individuals found under 
                        section 454(27) to have good cause for refusing 
                        to cooperate) to submit to genetic tests upon 
                        the request of any such party if the request is 
                        supported by a sworn statement by the party--
                                    ``(I) alleging paternity, and 
                                setting forth facts establishing a 
                                reasonable possibility of the requisite 
                                sexual contact between the parties; or
                                    ``(II) denying paternity, and 
                                setting forth facts establishing a 
                                reasonable possibility of the 
                                nonexistence of sexual contact between 
                                the parties.
                            ``(ii) Other requirements.--Procedures 
                        which require the State agency, in any case in 
                        which the agency orders genetic testing--
                                    ``(I) to pay costs of such tests, 
                                subject to recoupment (where the State 
                                so elects) from the alleged father if 
                                paternity is established; and
                                    ``(II) to obtain additional testing 
                                in any case where an original test 
                                result is contested, upon request and 
                                advance payment by the contestant.
                    ``(C) Voluntary paternity acknowledgment.--
                            ``(i) Simple civil process.--Procedures for 
                        a simple civil process for voluntarily 
                        acknowledging paternity under which the State 
                        must provide that, before a mother and a 
                        putative father can sign an acknowledgment of 
                        paternity, the mother and the putative father 
                        must be given notice, orally, in writing, and 
                        in a language that each can understand, of the 
                        alternatives to, the legal consequences of, and 
                        the rights (including, if 1 parent is a minor, 
                        any rights afforded due to minority status) and 
                        responsibilities that arise from, signing the 
                        acknowledgment.
                            ``(ii) Hospital-based program.--Such 
                        procedures must include a hospital-based 
                        program for the voluntary acknowledgment of 
                        paternity focusing on the period immediately 
                        before or after the birth of a child.
                            ``(iii) Paternity establishment services.--
                                    ``(I) State-offered services.--Such 
                                procedures must require the State 
                                agency responsible for maintaining 
                                birth records to offer voluntary 
                                paternity establishment services.
                                    ``(II) Regulations.--
                                            ``(aa) Services offered by 
                                        hospitals and birth record 
                                        agencies.--The Secretary shall 
                                        prescribe regulations governing 
                                        voluntary paternity 
                                        establishment services offered 
                                        by hospitals and birth record 
                                        agencies.
                                            ``(bb) Services offered by 
                                        other entities.--The Secretary 
                                        shall prescribe regulations 
                                        specifying the types of other 
                                        entities that may offer 
                                        voluntary paternity 
                                        establishment services, and 
                                        governing the provision of such 
                                        services, which shall include a 
                                        requirement that such an entity 
                                        must use the same notice 
                                        provisions used by, 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 the 
                                        provision of such services is 
                                        evaluated by, voluntary 
                                        paternity establishment 
                                        programs of hospitals and birth 
                                        record agencies.
                            ``(iv) Use of federal paternity 
                        acknowledgment affidavit.--Such procedures must 
                        require the State and those required to 
                        establish paternity 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.
                    ``(D) Status of signed paternity acknowledgment.--
                            ``(i) Legal finding of paternity.--
                        Procedures under which a signed acknowledgment 
                        of paternity is considered a legal finding of 
                        paternity, subject to the right of any 
                        signatory to rescind the acknowledgment within 
                        60 days.
                            ``(ii) Contest.--Procedures under which, 
                        after the 60-day period referred to in clause 
                        (i), a signed acknowledgment of paternity may 
                        be challenged in court only on the basis of 
                        fraud, duress, or material mistake of fact, 
                        with the burden of proof upon the challenger, 
                        and under which the legal responsibilities 
                        (including child support obligations) of any 
                        signatory arising from the acknowledgment may 
                        not be suspended during the challenge, except 
                        for good cause shown.
                            ``(iii) Rescission.--Procedures under 
                        which, after the 60-day period referred to in 
                        clause (i), a minor who has signed an 
                        acknowledgment of paternity other than in the 
                        presence of a parent or court-appointed 
                        guardian ad litem may rescind the 
                        acknowledgment in a judicial or administrative 
                        proceeding, until the earlier of--
                                    ``(I) attaining the age of 
                                majority; or
                                    ``(II) the date of the first 
                                judicial or administrative proceeding 
                                brought (after the signing) to 
                                establish a child support obligation, 
                                visitation rights, or custody rights 
                                with respect to the child whose 
                                paternity is the subject of the 
                                acknowledgment, and at which the minor 
                                is represented by a parent or guardian 
                                ad litem, or an attorney.
                    ``(E) Bar on acknowledgment ratification 
                proceedings.--Procedures under which judicial or 
                administrative proceedings are not required or 
                permitted to ratify an unchallenged acknowledgment of 
                paternity.
                    ``(F) Admissibility of genetic testing results.--
                Procedures--
                            ``(i) requiring the admission into 
                        evidence, for purposes of establishing 
                        paternity, of the results of any genetic test 
                        that is--
                                    ``(I) of a type generally 
                                acknowledged as reliable by 
                                accreditation bodies designated by the 
                                Secretary; and
                                    ``(II) performed by a laboratory 
                                approved by such an accreditation body;
                            ``(ii) requiring an objection to genetic 
                        testing results to be made in writing not later 
                        than a specified number of days before any 
                        hearing at which the results may be introduced 
                        into evidence (or, at State option, not later 
                        than a specified number of days after receipt 
                        of the results); and
                            ``(iii) making the test results admissible 
                        as evidence of paternity without the need for 
                        foundation testimony or other proof of 
                        authenticity or accuracy, unless objection is 
                        made.
                    ``(G) Presumption of paternity in certain cases.--
                Procedures which create a rebuttable or, at the option 
                of the State, conclusive presumption of paternity upon 
                genetic testing results indicating a threshold 
                probability that the alleged father is the father of 
                the child.
                    ``(H) Default orders.--Procedures requiring a 
                default order to be entered in a paternity case upon a 
                showing of service of process on the defendant and any 
                additional showing required by State law.
                    ``(I) No right to jury trial.--Procedures providing 
                that the parties to an action to establish paternity 
                are not entitled to a trial by jury.
                    ``(J) Temporary support order based on probable 
                paternity in contested cases.--Procedures which require 
                that a temporary order be issued, upon motion by a 
                party, requiring the provision of child support pending 
                an administrative or judicial determination of 
                parentage, where there is clear and convincing evidence 
                of paternity (on the basis of genetic tests or other 
                evidence).
                    ``(K) Proof of certain support and paternity 
                establishment costs.--Procedures under which bills for 
                pregnancy, childbirth, and genetic testing are 
                admissible as evidence without requiring third-party 
                foundation testimony, and shall constitute prima facie 
                evidence of amounts incurred for such services or for 
                testing on behalf of the child.
                    ``(L) Standing of putative fathers.--Procedures 
                ensuring that the putative father has a reasonable 
                opportunity to initiate a paternity action.
                    ``(M) Filing of acknowledgments and adjudications 
                in state registry of birth records.--Procedures under 
                which voluntary acknowledgments and adjudications of 
                paternity by judicial or administrative processes are 
                filed with the State registry of birth records for 
                comparison with information in the State case 
                registry.''.
    (b) 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 
which shall include the social security number of each parent'' before 
the semicolon.
    (c) Technical Amendment.--Section 468 (42 U.S.C. 668) is amended by 
striking ``a simple civil process for voluntarily acknowledging 
paternity and''.

SEC. 532. OUTREACH FOR VOLUNTARY PATERNITY ESTABLISHMENT.

    Section 454(23) (42 U.S.C. 654(23)) is amended by inserting ``and 
will publicize the availability and encourage the use of procedures for 
voluntary establishment of paternity and child support by means the 
State deems appropriate'' before the semicolon.

SEC. 533. COOPERATION BY APPLICANTS FOR AND RECIPIENTS OF TEMPORARY 
              FAMILY ASSISTANCE.

    Section 454 (42 U.S.C. 654), as amended by sections 503(a) and 
512(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 agency responsible for 
        administering the State plan--
                    ``(A) shall require each individual who has applied 
                for or is receiving assistance under the State program 
                funded under part A to cooperate with the State in 
                establishing the paternity of, and in establishing, 
                modifying, or enforcing a support order for, any child 
                of the individual by providing the State agency with 
                the name of, and such other information as the State 
                agency may require with respect to, the father of the 
                child, subject to such good cause and other exceptions 
                as the State may establish; and
                    ``(B) may require the individual and the child to 
                submit to genetic tests.''.

             Subtitle E--Program Administration and Funding

SEC. 541. FEDERAL MATCHING PAYMENTS.

    (a) Increased Base Matching Rate.--Section 455(a)(2) (42 U.S.C. 
655(a)(2)) is amended to read as follows:
            ``(2) The percent specified in this paragraph for any 
        quarter is 66 percent.''.
    (b) Maintenance of Effort.--Section 455 (42 U.S.C. 655) is 
amended--
            (1) in subsection (a)(1), in the matter preceding 
        subparagraph (A), by striking ``From'' and inserting ``Subject 
        to subsection (c), from''; and
            (2) by inserting after subsection (b) the following:
    ``(c) Maintenance of Effort.--Notwithstanding subsection (a), the 
total expenditures under the State plan approved under this part for 
fiscal year 1997 and each succeeding fiscal year, reduced by the 
percentage specified in paragraph (2) for the fiscal year shall not be 
less than such total expenditures for fiscal year 1996, reduced by 66 
percent.''.

SEC. 542. PERFORMANCE-BASED INCENTIVES AND PENALTIES.

    (a) Incentive Adjustments to Federal Matching Rate.--Section 458 
(42 U.S.C. 658) is amended to read as follows:

``SEC. 458. INCENTIVE ADJUSTMENTS TO MATCHING RATE.

    ``(a) Incentive Adjustments.--
            ``(1) In general.--Beginning with fiscal year 1999, the 
        Secretary shall increase the percent specified in section 
        455(a)(2) that applies to payments to a State under section 
        455(a)(1)(A) for each quarter in a fiscal year by a factor 
        reflecting the sum of the applicable incentive adjustments (if 
        any) determined in accordance with regulations under this 
        section with respect to the paternity establishment percentage 
        of the State for the immediately preceding fiscal year and with 
        respect to overall performance of the State in child support 
        enforcement during such preceding fiscal year.
            ``(2) Standards.--
                    ``(A) In general.--The Secretary shall specify in 
                regulations--
                            ``(i) the levels of accomplishment, and 
                        rates of improvement as alternatives to such 
                        levels, which a State must attain to qualify 
                        for an incentive adjustment under this section; 
                        and
                            ``(ii) the amounts of incentive adjustment 
                        that shall be awarded to a State that achieves 
                        specified accomplishment or improvement levels, 
                        which amounts shall be graduated, ranging up 
                        to--
                                    ``(I) 12 percentage points, in 
                                connection with paternity 
                                establishment; and
                                    ``(II) 12 percentage points, in 
                                connection with overall performance in 
                                child support enforcement.
                    ``(B) Limitation.--In setting performance standards 
                pursuant to subparagraph (A)(i) and adjustment amounts 
                pursuant to subparagraph (A)(ii), the Secretary shall 
                ensure that the aggregate number of percentage point 
                increases as incentive adjustments to all States do not 
                exceed such aggregate increases as assumed by the 
                Secretary in estimates of the cost of this section as 
                of June 1994, unless the aggregate performance of all 
                States exceeds the projected aggregate performance of 
                all States in such cost estimates.
            ``(3) Determination of incentive adjustment.--The Secretary 
        shall determine the amount (if any) of the incentive adjustment 
        due each State on the basis of the data submitted by the State 
        pursuant to section 454(15)(B) concerning the levels of 
        accomplishment (and rates of improvement) with respect to 
        performance indicators specified by the Secretary pursuant to 
        this section.
            ``(4) Reduction of incentive adjustment in certain cases.--
                    ``(A) In general.--If the Secretary finds, as a 
                result of an audit conducted under section 452(a)(4)(C) 
                that the paternity establishment percentage of a State 
                does not meet the requirement of subparagraph (B) for a 
                fiscal year and that the State has failed to take 
                sufficient corrective action, or that the data 
                submitted by the State under section 454(15)(B) is 
                incomplete or unreliable, the Secretary shall reduce 
                the amount (if any) of the incentive adjustment due the 
                State for the fiscal year--
                            ``(i) in the case of the 1st such finding, 
                        by not less than 3 percent and not more than 5 
                        percent;
                            ``(ii) in the case of the 2nd such finding, 
                        by not less than 5 percent and not more than 8 
                        percent; or
                            ``(iii) in the case of the 3rd or 
                        subsequent such finding, by not less than 10 
                        percent and not more than 15 percent.
                    ``(B) Requirement.--The requirement of this 
                subparagraph is that the paternity establishment 
                percentage of the State for the fiscal year must be not 
                less than--
                            ``(i) 90 percent;
                            ``(ii) the paternity establishment 
                        percentage of the State for the immediately 
                        preceding fiscal year plus 6 percentage points, 
                        if the paternity establishment percentage of 
                        the State for the fiscal year is not less than 
                        50 percent and less than 90 percent; or
                            ``(iii) the paternity establishment 
                        percentage of the State for the immediately 
                        preceding fiscal year plus 10 percentage 
                        points, if the paternity establishment 
                        percentage of the State for the fiscal year is 
                        less than 50 percent.
            ``(5) Recycling of incentive adjustment.--A State to which 
        funds are paid by the Federal Government as a result of an 
        incentive adjustment under this section shall expend the funds 
        in the State program under this part within 2 years after the 
        date of the payment.
    ``(b) Definitions.--As used in this section:
            ``(1) Paternity establishment percentage.--The term 
        `paternity establishment percentage' means, with respect to a 
        State and a fiscal year--
                    ``(A) the total number of children in the State who 
                were born out of wedlock, who have not attained 1 year 
                of age and for whom paternity is established or 
                acknowledged during the fiscal year; divided by
                    ``(B) the total number of children born out of 
                wedlock in the State during the fiscal year.
            ``(2) Overall performance in child support enforcement.--
        The term `overall performance in child support enforcement' 
        means a measure or measures of the effectiveness of the State 
        agency in a fiscal year which takes into account factors 
        including--
                    ``(A) the percentage of cases requiring a support 
                order in which such an order was established;
                    ``(B) the percentage of cases in which child 
                support is being paid;
                    ``(C) the ratio of child support collected to child 
                support due; and
                    ``(D) the cost-effectiveness of the State program, 
                as determined in accordance with standards established 
                by the Secretary in regulations (after consultation 
                with the States).''.
    (b) Conforming Amendments.--Section 454(22) (42 U.S.C. 654(22)) is 
amended--
            (1) by striking ``incentive payments'' the 1st place such 
        term appears and inserting ``incentive adjustments''; and
            (2) by striking ``any such incentive payments made to the 
        State for such period'' and inserting ``any increases in 
        Federal payments to the State resulting from such incentive 
        adjustments''.
    (c) Calculation of IV-D Paternity Establishment Percentage.--
            (1) Section 452(g)(1) (42 U.S.C. 652(g)(1)) is amended in 
        the matter preceding subparagraph (A) by inserting ``its 
        overall performance in child support enforcement is 
        satisfactory (as defined in section 458(b) and regulations of 
        the Secretary), and'' after ``1994,''.
            (2) Section 452(g)(2)(A) (42 U.S.C. 652(g)(2)(A)) is 
        amended in the matter preceding clause (i)--
                    (A) by striking ``paternity establishment 
                percentage'' and inserting ``IV-D paternity 
                establishment percentage''; and
                    (B) by striking ``(or all States, as the case may 
                be)''.
            (3) Section 452(g)(3) (42 U.S.C. 652(g)(3)) is amended--
                    (A) by striking subparagraph (A) and redesignating 
                subparagraphs (B) and (C) as subparagraphs (A) and (B), 
                respectively;
                    (B) in subparagraph (A) (as so redesignated), by 
                striking ``the percentage of children born out-of-
                wedlock in a State'' and inserting ``the percentage of 
                children in a State who are born out of wedlock or for 
                whom support has not been established''; and
                    (C) in subparagraph (B) (as so redesignated)--
                            (i) by inserting ``and overall performance 
                        in child support enforcement'' after 
                        ``paternity establishment percentages''; and
                            (ii) by inserting ``and securing support'' 
                        before the period.
    (d) Effective Dates.--
            (1) Incentive adjustments.--(A) The amendments made by 
        subsections (a) and (b) shall become effective on October 1, 
        1997, except to the extent provided in subparagraph (B).
            (B) Section 458 of the Social Security Act, as in effect 
        prior to the enactment of this section, shall be effective for 
        purposes of incentive payments to States for fiscal years 
        before fiscal year 1999.
            (2) Penalty reductions.--The amendments made by subsection 
        (c) shall become effective with respect to calendar quarters 
        beginning on and after the date of the enactment of this Act.

SEC. 543. FEDERAL AND STATE REVIEWS AND AUDITS.

    (a) State Agency Activities.--Section 454 (42 U.S.C. 654) is 
amended--
            (1) in paragraph (14), by striking ``(14)'' and inserting 
        ``(14)(A)'';
            (2) by redesignating paragraph (15) as subparagraph (B) of 
        paragraph (14); and
            (3) by inserting after paragraph (14) the following:
            ``(15) provide for--
                    ``(A) a process for annual reviews of and reports 
                to the Secretary on the State program operated under 
                the State plan approved under this part, which shall 
                include such information as may be necessary to measure 
                State compliance with Federal requirements for 
                expedited procedures and timely case processing, using 
                such standards and procedures as are required by the 
                Secretary, under which the State agency will determine 
                the extent to which the program is operated in 
                compliance with this part; and
                    ``(B) a process of extracting from the automated 
                data processing system required by paragraph (16) and 
                transmitting to the Secretary data and calculations 
                concerning the levels of accomplishment (and rates of 
                improvement) with respect to applicable performance 
                indicators (including IV-D paternity establishment 
                percentages and overall performance in child support 
                enforcement) to the extent necessary for purposes of 
                sections 452(g) and 458.''.
    (b) Federal Activities.--Section 452(a)(4) (42 U.S.C. 652(a)(4)) is 
amended to read as follows:
            ``(4)(A) review data and calculations transmitted by State 
        agencies pursuant to section 454(15)(B) on State program 
        accomplishments with respect to performance indicators for 
        purposes of subsection (g) of this section and section 458;
            ``(B) review annual reports submitted pursuant to section 
        454(15)(A) and, as appropriate, provide to the State comments, 
        recommendations for additional or alternative corrective 
        actions, and technical assistance; and
            ``(C) conduct audits, in accordance with the government 
        auditing standards of the Comptroller General of the United 
        States--
                    ``(i) at least once every 3 years (or more 
                frequently, in the case of a State which fails to meet 
                the requirements of this part, concerning performance 
                standards and reliability of program data) to assess 
                the completeness, reliability, and security of the 
                data, and the accuracy of the reporting systems, used 
                in calculating performance indicators under subsection 
                (g) of this section and section 458;
                    ``(ii) of the adequacy of financial management of 
                the State program operated under the State plan 
                approved under this part, including assessments of--
                            ``(I) whether Federal and other funds made 
                        available to carry out the State program are 
                        being appropriately expended, and are properly 
                        and fully accounted for; and
                            ``(II) whether collections and 
                        disbursements of support payments are carried 
                        out correctly and are fully accounted for; and
                    ``(iii) for such other purposes as the Secretary 
                may find necessary;''.
    (c) Effective Date.--The amendments made by this section shall be 
effective with respect to calendar quarters beginning 12 months or more 
after the date of the enactment of this section.

SEC. 544. REQUIRED REPORTING PROCEDURES.

    (a) Establishment.--Section 452(a)(5) (42 U.S.C. 652(a)(5)) is 
amended by inserting ``, and establish procedures to be followed by 
States for collecting and reporting information required to be provided 
under this part, and establish uniform definitions (including those 
necessary to enable the measurement of State compliance with the 
requirements of this part relating to expedited processes and timely 
case processing) to be applied in following such procedures'' before 
the semicolon.
    (b) State Plan Requirement.--Section 454 (42 U.S.C. 654), as 
amended by sections 503(a), 512(a), and 533 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 adding after paragraph (27) the following:
            ``(28) provide that the State shall use the definitions 
        established under section 452(a)(5) in collecting and reporting 
        information as required under this part.''.

SEC. 545. AUTOMATED DATA PROCESSING REQUIREMENTS.

    (a) Revised Requirements.--
            (1) Section 454(16) (42 U.S.C. 654(16)) is amended--
                    (A) by striking ``, at the option of the State,'';
                    (B) by inserting ``and operation by the State 
                agency'' after ``for the establishment'';
                    (C) by inserting ``meeting the requirements of 
                section 454A'' after ``information retrieval system'';
                    (D) by striking ``in the State and localities 
                thereof, so as (A)'' and inserting ``so as'';
                    (E) by striking ``(i)''; and
                    (F) by striking ``(including'' and all that follows 
                and inserting a semicolon.
            (2) Part D of title IV (42 U.S.C. 651-669) is amended by 
        inserting after section 454 the following:

``SEC. 454A. AUTOMATED DATA PROCESSING.

    ``(a) In General.--In order for a State to meet the requirements of 
this section, the State agency administering the State program under 
this part shall have in operation a single statewide automated data 
processing and information retrieval system which has the capability to 
perform the tasks specified in this section with the frequency and in 
the manner required by or under this part.
    ``(b) Program Management.--The automated system required by this 
section shall perform such functions as the Secretary may specify 
relating to management of the State program under this part, 
including--
            ``(1) controlling and accounting for use of Federal, State, 
        and local funds in carrying out the program; and
            ``(2) maintaining the data necessary to meet Federal 
        reporting requirements under this part on a timely basis.
    ``(c) Calculation of Performance Indicators.--In order to enable 
the Secretary to determine the incentive and penalty adjustments 
required by sections 452(g) and 458, the State agency shall--
            ``(1) use the automated system--
                    ``(A) to maintain the requisite data on State 
                performance with respect to paternity establishment and 
                child support enforcement in the State; and
                    ``(B) to calculate the IV-D paternity establishment 
                percentage and overall performance in child support 
                enforcement for the State for each fiscal year; and
            ``(2) have in place systems controls to ensure the 
        completeness, and reliability of, and ready access to, the data 
        described in paragraph (1)(A), and the accuracy of the 
        calculations described in paragraph (1)(B).
    ``(d) Information Integrity and Security.--The State agency shall 
have in effect safeguards on the integrity, accuracy, and completeness 
of, access to, and use of data in the automated system required by this 
section, which shall include the following (in addition to such other 
safeguards as the Secretary may specify in regulations):
            ``(1) Policies restricting access.--Written policies 
        concerning access to data by State agency personnel, and 
        sharing of data with other persons, which--
                    ``(A) permit access to and use of data only to the 
                extent necessary to carry out the State program under 
                this part; and
                    ``(B) specify the data which may be used for 
                particular program purposes, and the personnel 
                permitted access to such data.
            ``(2) Systems controls.--Systems controls (such as 
        passwords or blocking of fields) to ensure strict adherence to 
        the policies described in paragraph (1).
            ``(3) Monitoring of access.--Routine monitoring of access 
        to and use of the automated system, through methods such as 
        audit trails and feedback mechanisms, to guard against and 
        promptly identify unauthorized access or use.
            ``(4) Training and information.--Procedures to ensure that 
        all personnel (including State and local agency staff and 
        contractors) who may have access to or be required to use 
        confidential program data are informed of applicable 
        requirements and penalties (including those in section 6103 of 
        the Internal Revenue Code of 1986), and are adequately trained 
        in security procedures.
            ``(5) Penalties.--Administrative penalties (up to and 
        including dismissal from employment) for unauthorized access 
        to, or disclosure or use of, confidential data.''.
            (3) Regulations.--The Secretary of Health and Human 
        Services shall prescribe final regulations for implementation 
        of section 454A of the Social Security Act not later than 2 
        years after the date of the enactment of this Act.
            (4) Implementation timetable.--Section 454(24) (42 U.S.C. 
        654(24)), as amended by sections 503(a)(2) and 512(a)(1) of 
        this Act, is amended to read as follows:
            ``(24) provide that the State will have in effect an 
        automated data processing and information retrieval system--
                    ``(A) by October 1, 1995, which meets all 
                requirements of this part which were enacted on or 
                before the date of enactment of the Family Support Act 
                of 1988; and
                    ``(B) by October 1, 1999, which meets all 
                requirements of this part enacted on or before the date 
                of the enactment of the Welfare Transformation Act of 
                1995, except that such deadline shall be extended by 1 
                day for each day (if any) by which the Secretary fails 
                to meet the deadline imposed by section 545(a)(3) of 
                such Act.''.
    (b) Special Federal Matching Rate for Development Costs of 
Automated Systems.--
            (1) In general.--Section 455(a) (42 U.S.C. 655(a)) is 
        amended--
                    (A) in paragraph (1)(B)--
                            (i) by striking ``90 percent'' and 
                        inserting ``the percent specified in paragraph 
                        (3)'';
                            (ii) by striking ``so much of''; and
                            (iii) by striking ``which the Secretary'' 
                        and all that follows and inserting ``, and''; 
                        and
                    (B) by adding at the end the following:
    ``(3)(A) The Secretary shall pay to each State, for each quarter in 
fiscal year 1996, 90 percent of so much of the State expenditures 
described in paragraph (1)(B) as the Secretary finds are for a system 
meeting the requirements specified in section 454(16).
    ``(B)(i) The Secretary shall pay to each State, for each quarter in 
fiscal years 1997 through 2001, the percentage specified in clause (ii) 
of so much of the State expenditures described in paragraph (1)(B) as 
the Secretary finds are for a system meeting the requirements of 
sections 454(16) and 454A.
    ``(ii) The percentage specified in this clause is the greater of--
            ``(I) 80 percent; or
            ``(II) the percentage otherwise applicable to Federal 
        payments to the State under subparagraph (A) (as adjusted 
        pursuant to section 458).''.
            (2) Temporary limitation on payments under special federal 
        matching rate.--
                    (A) In general.--The Secretary of Health and Human 
                Services may not pay more than $260,000,000 in the 
                aggregate under section 455(a)(3) of the Social 
                Security Act for fiscal years 1996, 1997, 1998, 1999, 
                and 2000.
                    (B) Allocation of limitation among states.--The 
                total amount payable to a State under section 455(a)(3) 
                of such Act for fiscal years 1996, 1997, 1998, 1999, 
                and 2000 shall not exceed the limitation determined for 
                the State by the Secretary of Health and Human Services 
                in regulations.
                    (C) Allocation formula.--The regulations referred 
                to in subparagraph (B) shall prescribe a formula for 
                allocating the amount specified in subparagraph (A) 
                among States with plans approved under part D of title 
                IV of the Social Security Act, which shall take into 
                account--
                            (i) the relative size of State caseloads 
                        under such part; and
                            (ii) the level of automation needed to meet 
                        the automated data processing requirements of 
                        such part.
    (c) Conforming Amendment.--Section 123(c) of the Family Support Act 
of 1988 (102 Stat. 2352; Public Law 100-485) is repealed.

SEC. 546. TECHNICAL ASSISTANCE.

    (a) For Training of Federal and State Staff, Research and 
Demonstration Programs, and Special Projects of Regional or National 
Significance.--Section 452 (42 U.S.C. 652) is amended by adding at the 
end the following:
    ``(j) Out of any money in the Treasury of the United States not 
otherwise appropriated, there is hereby appropriated to the Secretary 
for each fiscal year an amount equal to 1 percent of the total amount 
paid to the Federal Government pursuant to section 457(a) during the 
immediately preceding fiscal year (as determined on the basis of the 
most recent reliable data available to the Secretary as of the end of 
the 3rd calendar quarter following the end of such preceding fiscal 
year), to cover costs incurred by the Secretary for--
            ``(1) information dissemination and technical assistance to 
        States, training of State and Federal staff, staffing studies, 
        and related activities needed to improve programs under this 
        part (including technical assistance concerning State automated 
        systems required by this part); and
            ``(2) research, demonstration, and special projects of 
        regional or national significance relating to the operation of 
        State programs under this part.''.
    (b) Operation of Federal Parent Locator Service.--Section 453 (42 
U.S.C. 653), as amended by section 516 of this Act, is amended by 
adding at the end the following:
    ``(n) Out of any money in the Treasury of the United States not 
otherwise appropriated, there is hereby appropriated to the Secretary 
for each fiscal year an amount equal to 2 percent of the total amount 
paid to the Federal Government pursuant to section 457(a) during the 
immediately preceding fiscal year (as determined on the basis of the 
most recent reliable data available to the Secretary as of the end of 
the 3rd calendar quarter following the end of such preceding fiscal 
year), to cover costs incurred by the Secretary for operation of the 
Federal Parent Locator Service under this section, to the extent such 
costs are not recovered through user fees.''.

SEC. 547. REPORTS AND DATA COLLECTION BY THE SECRETARY.

    (a) Annual Report to Congress.--
            (1) Section 452(a)(10)(A) (42 U.S.C. 652(a)(10)(A)) is 
        amended--
                    (A) by striking ``this part;'' and inserting ``this 
                part, including--''; and
                    (B) by adding at the end the following:
                            ``(i) the total amount of child support 
                        payments collected as a result of services 
                        furnished during the fiscal year to individuals 
                        receiving services under this part;
                            ``(ii) the cost to the States and to the 
                        Federal Government of so furnishing the 
                        services; and
                            ``(iii) the number of cases involving 
                        families--
                                    ``(I) who became ineligible for 
                                assistance under State programs funded 
                                under part A during a month in the 
                                fiscal year; and
                                    ``(II) with respect to whom a child 
                                support payment was received in the 
                                month;''.
            (2) Section 452(a)(10)(C) (42 U.S.C. 652(a)(10)(C)) is 
        amended--
                    (A) in the matter preceding clause (i)--
                            (i) by striking ``with the data required 
                        under each clause being separately stated for 
                        cases'' and inserting ``separately stated for 
                        (1) cases'';
                            (ii) by striking ``cases where the child 
                        was formerly receiving'' and inserting ``or 
                        formerly received'';
                            (iii) by inserting ``or 1912'' after 
                        ``471(a)(17)''; and
                            (iv) by inserting ``(2)'' before ``all 
                        other'';
                    (B) in each of clauses (i) and (ii), by striking 
                ``, and the total amount of such obligations'';
                    (C) in clause (iii), by striking ``described in'' 
                and all that follows and inserting ``in which support 
                was collected during the fiscal year;'';
                    (D) by striking clause (iv);
                    (E) by redesignating clause (v) as clause (vii), 
                and inserting after clause (iii) the following:
                            ``(iv) the total amount of support 
                        collected during such fiscal year and 
                        distributed as current support;
                            ``(v) the total amount of support collected 
                        during such fiscal year and distributed as 
                        arrearages;
                            ``(vi) the total amount of support due and 
                        unpaid for all fiscal years; and''.
            (3) Section 452(a)(10)(G) (42 U.S.C. 652(a)(10)(G)) is 
        amended by striking ``on the use of Federal courts and''.
            (4) Section 452(a)(10) (42 U.S.C. 652(a)(10)) is amended by 
        striking all that follows subparagraph (I).
    (b) Effective Date.--The amendments made by subsection (a) shall be 
effective with respect to fiscal year 1996 and succeeding fiscal years.

      Subtitle F--Establishment and Modification of Support Orders

SEC. 551. SIMPLIFIED PROCESS FOR REVIEW AND ADJUSTMENT OF CHILD SUPPORT 
              ORDERS.

    Section 466(a)(10) (42 U.S.C. 666(a)(10)) is amended to read as 
follows:
            ``(10) Review and adjustment of support orders.--Procedures 
        under which the State shall review and adjust each support 
        order being enforced under this part. Such procedures shall 
        provide the following:
                    ``(A) The State shall review and, as appropriate, 
                adjust the support order every 3 years.
                    ``(B)(i) The State may elect to review and, if 
                appropriate, adjust an order pursuant to subparagraph 
                (A) by--
                            ``(I) reviewing and, if appropriate, 
                        adjusting the order in accordance with the 
                        guidelines established pursuant to section 
                        467(a) if the amount of the child support award 
                        under the order differs from the amount that 
                        would be awarded in accordance with the 
                        guidelines; or
                            ``(II) applying a cost-of-living adjustment 
                        to the order in accordance with a formula 
                        developed by the State and permit either party 
                        to contest the adjustment, within 30 days after 
                        the date of the notice of the adjustment, by 
                        making a request for review and, if 
                        appropriate, adjustment of the order in 
                        accordance with the child support guidelines 
                        established pursuant to section 467(a).
                    ``(ii) Any adjustment under clause (i) shall be 
                made without a requirement for proof or showing of a 
                change in circumstances.
                    ``(C) The State may use automated methods 
                (including automated comparisons with wage or State 
                income tax data) to identify orders eligible for 
                review, conduct the review, identify orders eligible 
                for adjustment, apply the appropriate adjustment to the 
                orders eligible for adjustment under the threshold 
                established by the State.
                    ``(D) The State shall, at the request of either 
                parent subject to such an order or of any State child 
                support enforcement agency, review and, if appropriate, 
                adjust the order in accordance with the guidelines 
                established pursuant to section 467(a) based upon a 
                substantial change in the circumstances of either 
                parent.
                    ``(E) The State shall provide notice to the parents 
                subject to such an order informing them of their right 
                to request the State to review and, if appropriate, 
                adjust the order pursuant to subparagraph (D). The 
                notice may be included in the order.''.

               Subtitle G--Enforcement of Support Orders

SEC. 561. FEDERAL INCOME TAX REFUND OFFSET.

    (a) Changed Order of Refund Distribution Under Internal Revenue 
Code.--
            (1) Subsection (c) of section 6402 of the Internal Revenue 
        Code of 1986 is amended by striking the third sentence and 
        inserting the following new sentences: ``A reduction under this 
        subsection shall be after any other reduction allowed by 
        subsection (d) with respect to the Department of Health and 
        Human Services and the Department of Education with respect to 
        a student loan and before any other reduction allowed by law 
        and before such overpayment is credited to the future liability 
        for tax of such person pursuant to subsection (b). A reduction 
        under this subsection shall be assigned to the State with 
        respect to past-due support owned to individuals for periods 
        such individuals were receiving assistance under part A or B of 
        title IV of the Social Security Act only after satisfying all 
        other past-due support.''.
            (2) Paragraph (2) of section 6402(d) of such Code is 
        amended--
                    (A) by striking ``Any overpayment'' and inserting 
                ``Except in the case of past-due legally enforceable 
                debts owed to the Department of Health and Human 
                Services or to the Department of Education with respect 
                to a student loan, any overpayment''; and
                    (B) by striking ``with respect to past-due support 
                collected pursuant to an assignment under section 
                402(a)(26) of the Social Security Act''.
    (b) Elimination of Disparities in Treatment of Assigned and Non-
Assigned Arrearages.--
            (1) Section 464(a) (42 U.S.C. 664(a)) is amended--
                    (A) by striking ``(a)'' and inserting ``(a) Offset 
                Authorized.--'';
                    (B) in paragraph (1)--
                            (i) in the 1st sentence, by striking 
                        ``which has been assigned to such State 
                        pursuant to section 402(a)(26) or section 
                        471(a)(17)''; and
                            (ii) in the 2nd sentence, by striking ``in 
                        accordance with section 457(b)(4) or (d)(3)'' 
                        and inserting ``as provided in paragraph (2)'';
                    (C) by striking paragraph (2) and inserting the 
                following:
            ``(2) The State agency shall distribute amounts paid by the 
        Secretary of the Treasury pursuant to paragraph (1)--
                    ``(A) in accordance with section 457(a), in the 
                case of past-due support assigned to a State pursuant 
                to requirements imposed pursuant to section 405(a)(8); 
                and
                    ``(B) to or on behalf of the child to whom the 
                support was owed, in the case of past-due support not 
                so assigned.''; and
                    (D) in paragraph (3)--
                            (i) by striking ``or (2)'' each place such 
                        term appears; and
                            (ii) in subparagraph (B), by striking 
                        ``under paragraph (2)'' and inserting ``on 
                        account of past-due support described in 
                        paragraph (2)(B)''.
            (2) Section 464(b) (42 U.S.C. 664(b)) is amended--
                    (A) by striking ``(b)(1)'' and inserting the 
                following:
    ``(b) Regulations.--''; and
                    (B) by striking paragraph (2).
            (3) Section 464(c) (42 U.S.C. 664(c)) is amended--
                    (A) by striking ``(c)(1) Except as provided in 
                paragraph (2), as'' and inserting the following:
    ``(c) Definition.--As''; and
                    (B) by striking paragraphs (2) and (3).

SEC. 562. AUTHORITY TO COLLECT SUPPORT FROM FEDERAL EMPLOYEES.

    (a) Consolidation and Streamlining of Authorities.--Section 459 (42 
U.S.C. 659) is amended to read as follows:

``SEC. 459. CONSENT BY THE UNITED STATES TO INCOME WITHHOLDING, 
              GARNISHMENT, AND SIMILAR PROCEEDINGS FOR ENFORCEMENT OF 
              CHILD SUPPORT AND ALIMONY OBLIGATIONS.

    ``(a) Consent to Support Enforcement.--Notwithstanding any other 
provision of law (including section 207 of this Act and section 5301 of 
title 38, United States Code), effective January 1, 1975, moneys (the 
entitlement to which is based upon remuneration for employment) due 
from, or payable by, the United States or the District of Columbia 
(including any agency, subdivision, or instrumentality thereof) to any 
individual, including members of the Armed Forces of the United States, 
shall be subject, in like manner and to the same extent as if the 
United States or the District of Columbia were a private person, to 
withholding in accordance with State law enacted pursuant to 
subsections (a)(1) and (b) of section 466 and regulations of the 
Secretary under such subsections, and to any other legal process 
brought, by a State agency administering a program under a State plan 
approved under this part or by an individual obligee, to enforce the 
legal obligation of the individual to provide child support or alimony.
    ``(b) Consent to Requirements Applicable to Private Person.--With 
respect to notice to withhold income pursuant to subsection (a)(1) or 
(b) of section 466, or any other order or process to enforce support 
obligations against an individual (if the order or process contains or 
is accompanied by sufficient data to permit prompt identification of 
the individual and the moneys involved), each governmental entity 
specified in subsection (a) shall be subject to the same requirements 
as would apply if the entity were a private person, except as otherwise 
provided in this section.
    ``(c) Designation of Agent; Response to Notice or Process--
            ``(1) Designation of agent.--The head of each agency 
        subject to this section shall--
                    ``(A) designate an agent or agents to receive 
                orders and accept service of process in matters 
                relating to child support or alimony; and
                    ``(B) annually publish in the Federal Register the 
                designation of the agent or agents, identified by title 
                or position, mailing address, and telephone number.
            ``(2) Response to notice or process.--If an agent 
        designated pursuant to paragraph (1) of this subsection 
        receives notice pursuant to State procedures in effect pursuant 
        to subsection (a)(1) or (b) of section 466, or is effectively 
        served with any order, process, or interrogatory, with respect 
        to an individual's child support or alimony payment 
        obligations, the agent shall--
                    ``(A) as soon as possible (but not later than 15 
                days) thereafter, send written notice of the notice or 
                service (together with a copy of the notice or service) 
                to the individual at the duty station or last-known 
                home address of the individual;
                    ``(B) within 30 days (or such longer period as may 
                be prescribed by applicable State law) after receipt of 
                a notice pursuant to such State procedures, comply with 
                all applicable provisions of section 466; and
                    ``(C) within 30 days (or such longer period as may 
                be prescribed by applicable State law) after effective 
                service of any other such order, process, or 
                interrogatory, respond to the order, process, or 
                interrogatory.
    ``(d) Priority of Claims.--If a governmental entity specified in 
subsection (a) receives notice or is served with process, as provided 
in this section, concerning amounts owed by an individual to more than 
1 person--
            ``(1) support collection under section 466(b) must be given 
        priority over any other process, as provided in section 
        466(b)(7);
            ``(2) allocation of moneys due or payable to an individual 
        among claimants under section 466(b) shall be governed by 
        section 466(b) and the regulations prescribed under such 
        section; and
            ``(3) such moneys as remain after compliance with 
        subparagraphs (A) and (B) shall be available to satisfy any 
        other such processes on a first-come, first-served basis, with 
        any such process being satisfied out of such moneys as remain 
        after the satisfaction of all such processes which have been 
        previously served.
    ``(e) No Requirement To Vary Pay Cycles.--A governmental entity 
that is affected by legal process served for the enforcement of an 
individual's child support or alimony payment obligations shall not be 
required to vary its normal pay and disbursement cycle in order to 
comply with the legal process.
    ``(f) Relief From Liability.--
            ``(1) Neither the United States, nor the government of the 
        District of Columbia, nor any disbursing officer shall be 
        liable with respect to any payment made from moneys due or 
        payable from the United States to any individual pursuant to 
        legal process regular on its face, if the payment is made in 
        accordance with this section and the regulations issued to 
        carry out this section.
            ``(2) No Federal employee whose duties include taking 
        actions necessary to comply with the requirements of subsection 
        (a) with regard to any individual shall be subject under any 
        law to any disciplinary action or civil or criminal liability 
        or penalty for, or on account of, any disclosure of information 
        made by the employee in connection with the carrying out of 
        such actions.
    ``(g) Regulations.--Authority to promulgate regulations for the 
implementation of this section shall, insofar as this section applies 
to moneys due from (or payable by)--
            ``(1) the United States (other than the legislative or 
        judicial branches of the Federal Government) or the government 
        of the District of Columbia, be vested in the President (or the 
        designee of the President);
            ``(2) the legislative branch of the Federal Government, be 
        vested jointly in the President pro tempore of the Senate and 
        the Speaker of the House of Representatives (or their 
        designees); and
            ``(3) the judicial branch of the Federal Government, be 
        vested in the Chief Justice of the United States (or the 
        designee of the Chief Justice).
    ``(h) Moneys Subject to Process.--
            ``(1) In general.--Subject to paragraph (2), moneys paid or 
        payable to an individual which are considered to be based upon 
        remuneration for employment, for purposes of this section--
                    ``(A) consist of--
                            ``(i) compensation paid or payable for 
                        personal services of the individual, whether 
                        the compensation is denominated as wages, 
                        salary, commission, bonus, pay, allowances, or 
                        otherwise (including severance pay, sick pay, 
                        and incentive pay);
                            ``(ii) periodic benefits (including a 
                        periodic benefit as defined in section 
                        228(h)(3)) or other payments--
                                    ``(I) under the insurance system 
                                established by title II;
                                    ``(II) under any other system or 
                                fund established by the United States 
                                which provides for the payment of 
                                pensions, retirement or retired pay, 
                                annuities, dependents' or survivors' 
                                benefits, or similar amounts payable on 
                                account of personal services performed 
                                by the individual or any other 
                                individual;
                                    ``(III) as compensation for death 
                                under any Federal program;
                                    ``(IV) under any Federal program 
                                established to provide `black lung' 
                                benefits; or
                                    ``(V) by the Secretary of Veterans 
                                Affairs as pension, or as compensation 
                                for a service-connected disability or 
                                death (except any compensation paid by 
                                the Secretary to a member of the Armed 
                                Forces who is in receipt of retired or 
                                retainer pay if the member has waived a 
                                portion of the retired pay of the 
                                member in order to receive the 
                                compensation); and
                            ``(iii) worker's compensation benefits paid 
                        under Federal or State law; but
                    ``(B) do not include any payment--
                            ``(i) by way of reimbursement or otherwise, 
                        to defray expenses incurred by the individual 
                        in carrying out duties associated with the 
                        employment of the individual; or
                            ``(ii) as allowances for members of the 
                        uniformed services payable pursuant to chapter 
                        7 of title 37, United States Code, as 
                        prescribed by the Secretaries concerned 
                        (defined by section 101(5) of such title) as 
                        necessary for the efficient performance of 
                        duty.
            ``(2) Certain amounts excluded.--In determining the amount 
        of any moneys due from, or payable by, the United States to any 
        individual, there shall be excluded amounts which--
                    ``(A) are owed by the individual to the United 
                States;
                    ``(B) are required by law to be, and are, deducted 
                from the remuneration or other payment involved, 
                including Federal employment taxes, and fines and 
                forfeitures ordered by court-martial;
                    ``(C) are properly withheld for Federal, State, or 
                local income tax purposes, if the withholding of the 
                amounts is authorized or required by law and if amounts 
                withheld are not greater than would be the case if the 
                individual claimed all dependents to which he was 
                entitled (the withholding of additional amounts 
                pursuant to section 3402(i) of the Internal Revenue 
                Code of 1986 may be permitted only when the individual 
                presents evidence of a tax obligation which supports 
                the additional withholding);
                    ``(D) are deducted as health insurance premiums;
                    ``(E) are deducted as normal retirement 
                contributions (not including amounts deducted for 
                supplementary coverage); or
                    ``(F) are deducted as normal life insurance 
                premiums from salary or other remuneration for 
                employment (not including amounts deducted for 
                supplementary coverage).
    ``(i) Definitions.--As used in this section:
            ``(1) United states.--The term `United States' includes any 
        department, agency, or instrumentality of the legislative, 
        judicial, or executive branch of the Federal Government, the 
        United States Postal Service, the Postal Rate Commission, any 
        Federal corporation created by an Act of Congress that is 
        wholly owned by the Federal Government, and the governments of 
        the territories and possessions of the United States.
            ``(2) Child support.--The term `child support', when used 
        in reference to the legal obligations of an individual to 
        provide such support, means periodic payments of funds for the 
        support and maintenance of a child or children with respect to 
        which the individual has such an obligation, and (subject to 
        and in accordance with State law) includes payments to provide 
        for health care, education, recreation, clothing, or to meet 
        other specific needs of such a child or children, and includes 
        attorney's fees, interest, and court costs, when and to the 
        extent that the same are expressly made recoverable as such 
        pursuant to a decree, order, or judgment issued in accordance 
        with applicable State law by a court of competent jurisdiction.
            ``(3) Alimony.--The term `alimony', when used in reference 
        to the legal obligations of an individual to provide the same, 
        means periodic payments of funds for the support and 
        maintenance of the spouse (or former spouse) of the individual, 
        and (subject to and in accordance with State law) includes 
        separate maintenance, alimony pendente lite, maintenance, and 
        spousal support, and includes attorney's fees, interest, and 
        court costs when and to the extent that the same are expressly 
        made recoverable as such pursuant to a decree, order, or 
        judgment issued in accordance with applicable State law by a 
        court of competent jurisdiction. Such term does not include any 
        payment or transfer of property or its value by an individual 
        to the spouse or a former spouse of the individual in 
        compliance with any community property settlement, equitable 
        distribution of property, or other division of property between 
        spouses or former spouses.
            ``(4) Private person.--The term `private person' means a 
        person who does not have sovereign or other special immunity or 
        privilege which causes the person not to be subject to legal 
        process.
            ``(5) Legal process.--The term `legal process' means any 
        writ, order, summons, or other similar process in the nature of 
        garnishment--
                    ``(A) which is issued by--
                            ``(i) a court of competent jurisdiction in 
                        any State, territory, or possession of the 
                        United States;
                            ``(ii) a court of competent jurisdiction in 
                        any foreign country with which the United 
                        States has entered into an agreement which 
                        requires the United States to honor the 
                        process; or
                            ``(iii) an authorized official pursuant to 
                        an order of such a court of competent 
                        jurisdiction or pursuant to State or local law; 
                        and
                    ``(B) which is directed to, and the purpose of 
                which is to compel, a governmental entity which holds 
                moneys which are otherwise payable to an individual to 
                make a payment from the moneys to another party in 
                order to satisfy a legal obligation of the individual 
                to provide child support or make alimony payments.''.
    (b) Conforming Amendments.--
            (1) To part d of title iv.--Sections 461 and 462 (42 U.S.C. 
        661 and 662) are repealed.
            (2) To title 5, united states code.--Section 5520a of title 
        5, United States Code, is amended, in subsections (h)(2) and 
        (i), by striking ``sections 459, 461, and 462 of the Social 
        Security Act (42 U.S.C. 659, 661, and 662)'' and inserting 
        ``section 459 of the Social Security Act (42 U.S.C. 659)''.
    (c) Military Retired and Retainer Pay.--
            (1) Definition of court.--Section 1408(a)(1) of title 10, 
        United States Code, is amended--
                    (A) by striking ``and'' at the end of subparagraph 
                (B);
                    (B) by striking the period at the end of 
                subparagraph (C) and inserting ``; and''; and
                    (C) by adding after subparagraph (C) the following 
                new paragraph:
                    ``(D) any administrative or judicial tribunal of a 
                State competent to enter orders for support or 
                maintenance (including a State agency administering a 
                program under a State plan approved under part D of 
                title IV of the Social Security Act), and, for purposes 
                of this subparagraph, the term `State' includes the 
                District of Columbia, the Commonwealth of Puerto Rico, 
                the Virgin Islands, Guam, and American Samoa.''.
            (2) Definition of court order.--Section 1408(a)(2) of such 
        title is amended by inserting ``or a court order for the 
        payment of child support not included in or accompanied by such 
        a decree or settlement,'' before ``which--''.
            (3) Public payee.--Section 1408(d) of such title is 
        amended--
                    (A) in the heading, by inserting ``(or for benefit 
                of)'' before ``Spouse or''; and
                    (B) in paragraph (1), in the first sentence, by 
                inserting ``(or for the benefit of such spouse or 
                former spouse to a State disbursement unit established 
                pursuant to section 454B of the Social Security Act or 
                other public payee designated by a State, in accordance 
                with part D of title IV of the Social Security Act, as 
                directed by court order, or as otherwise directed in 
                accordance with such part D)'' before ``in an amount 
                sufficient''.
            (4) Relationship to part d of title iv.--Section 1408 of 
        such title is amended by adding at the end the following:
    ``(j) Relationship to Other Laws.--In any case involving an order 
providing for payment of child support (as defined in section 459(i)(2) 
of the Social Security Act) by a member who has never been married to 
the other parent of the child, the provisions of this section shall not 
apply, and the case shall be subject to the provisions of section 459 
of such Act.''.
    (d) Effective Date.--The amendments made by this section shall 
become effective 6 months after the date of the enactment of this Act.

SEC. 563. ENFORCEMENT OF CHILD SUPPORT OBLIGATIONS OF MEMBERS OF THE 
              ARMED FORCES.

    (a) Availability of Locator Information.--
            (1) Maintenance of address information.--The Secretary of 
        Defense shall establish a centralized personnel locator service 
        that includes the address of each member of the Armed Forces 
        under the jurisdiction of the Secretary. Upon request of the 
        Secretary of Transportation, addresses for members of the Coast 
        Guard shall be included in the centralized personnel locator 
        service.
            (2) Type of address.--
                    (A) Residential address.--Except as provided in 
                subparagraph (B), the address for a member of the Armed 
                Forces shown in the locator service shall be the 
                residential address of that member.
                    (B) Duty address.--The address for a member of the 
                Armed Forces shown in the locator service shall be the 
                duty address of that member in the case of a member--
                            (i) who is permanently assigned overseas, 
                        to a vessel, or to a routinely deployable unit; 
                        or
                            (ii) with respect to whom the Secretary 
                        concerned makes a determination that the 
                        member's residential address should not be 
                        disclosed due to national security or safety 
                        concerns.
            (3) Updating of locator information.--Within 30 days after 
        a member listed in the locator service establishes a new 
        residential address (or a new duty address, in the case of a 
        member covered by paragraph (2)(B)), the Secretary concerned 
        shall update the locator service to indicate the new address of 
        the member.
            (4) Availability of information.--The Secretary of Defense 
        shall make information regarding the address of a member of the 
        Armed Forces listed in the locator service available, on 
        request, to the Federal Parent Locator Service established 
        under section 453 of the Social Security Act.
    (b) Facilitating Granting of Leave for Attendance at Hearings.--
            (1) Regulations.--The Secretary of each military 
        department, and the Secretary of Transportation with respect to 
        the Coast Guard when it is not operating as a service in the 
        Navy, shall prescribe regulations to facilitate the granting of 
        leave to a member of the Armed Forces under the jurisdiction of 
        that Secretary in a case in which--
                    (A) the leave is needed for the member to attend a 
                hearing described in paragraph (2);
                    (B) the member is not serving in or with a unit 
                deployed in a contingency operation (as defined in 
                section 101 of title 10, United States Code); and
                    (C) the exigencies of military service (as 
                determined by the Secretary concerned) do not otherwise 
                require that such leave not be granted.
            (2) Covered hearings.--Paragraph (1) applies to a hearing 
        that is conducted by a court or pursuant to an administrative 
        process established under State law, in connection with a civil 
        action--
                    (A) to determine whether a member of the Armed 
                Forces is a natural parent of a child; or
                    (B) to determine an obligation of a member of the 
                Armed Forces to provide child support.
            (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 459(i) of the Social 
                Security Act (42 U.S.C. 659(i)).
    (c) Payment of Military Retired Pay in Compliance With Child 
Support 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:
    ``(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 or an order of an administrative process established under State 
law for child support received by the Secretary concerned for the 
purposes of this section be recent in relation to the date of receipt 
by the Secretary.''.
            (2) Payments consistent with assignments of rights to 
        states.--Section 1408(d)(1) of such title is amended by 
        inserting after the 1st sentence the following: ``In the case 
        of a spouse or former spouse who, pursuant to section 405(a)(8) 
        of the Social Security Act (42 U.S.C. 605(a)(8)), 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 that assignment of rights.''.
            (3) Arrearages owed by members of the uniformed services.--
        Section 1408(d) of such title is amended by adding at the end 
        the following:
    ``(6) In the case of a court order or an order of an administrative 
process established under State law for which effective service is made 
on the Secretary concerned on or after the date of the enactment of 
this paragraph and which provides for payments from the disposable 
retired pay of a member to satisfy the amount of child support set 
forth in the order, the authority provided in paragraph (1) to make 
payments from the disposable retired pay of a member to satisfy the 
amount of child support set forth in a court order or an order of an 
administrative process established under State law shall apply to 
payment of any amount of child support arrearages set forth in that 
order as well as to amounts of child support that currently become 
due.''.
            (4) Payroll deductions.--The Secretary of Defense shall 
        begin payroll deductions within 30 days after receiving notice 
        of withholding, or for the first pay period that begins after 
        such 30-day period.

SEC. 564. VOIDING OF FRAUDULENT TRANSFERS.

    Section 466 (42 U.S.C. 666), as amended by section 521 of this Act, 
is amended by adding at the end the following:
    ``(f) Laws Voiding Fraudulent Transfers.--In order to satisfy 
section 454(20)(A), each State must have in effect--
            ``(1)(A) the Uniform Fraudulent Conveyance Act of 1981;
            ``(B) the Uniform Fraudulent Transfer Act of 1984; or
            ``(C) another law, specifying indicia of fraud which create 
        a prima facie case that a debtor transferred income or property 
        to avoid payment to a child support creditor, which the 
        Secretary finds affords comparable rights to child support 
        creditors; and
            ``(2) procedures under which, in any case in which the 
        State knows of a transfer by a child support debtor with 
        respect to which such a prima facie case is established, the 
        State must--
                    ``(A) seek to void such transfer; or
                    ``(B) obtain a settlement in the best interests of 
                the child support creditor.''.

SEC. 565. SENSE OF THE CONGRESS THAT STATES SHOULD SUSPEND DRIVERS', 
              BUSINESS, AND OCCUPATIONAL LICENSES OF PERSONS OWING 
              PAST-DUE CHILD SUPPORT.

    It is the sense of the Congress that each State should suspend any 
driver's license, business license, or occupational license issued to 
any person who owes past-due child support.

SEC. 566. WORK REQUIREMENT FOR PERSONS OWING PAST-DUE CHILD SUPPORT.

    Section 466(a) of the Social Security Act (42 U.S.C. 666(a)), as 
amended by sections 501(a), 515, 517(a), and 523 of this Act, is 
amended by adding at the end the following:
            ``(16) Procedures to ensure that persons owing past-due 
        support work or have a plan for payment of such support.--
                    ``(A) Procedures requiring the State, in any case 
                in which an individual owes past-due support with 
                respect to a child receiving assistance under a State 
                program funded under part A, to seek a court order that 
                requires the individual to--
                            ``(i) pay such support in accordance with a 
                        plan approved by the court; or
                            ``(ii) if the individual is subject to such 
                        a plan and is not incapacitated, participate in 
                        such work activities (as defined in section 
                        404(b)(1)) as the court deems appropriate.
                    ``(B) As used in subparagraph (A), the term `past-
                due support' means the amount of a delinquency, 
                determined under a court order, or an order of an 
                administrative process established under State law, for 
                support and maintenance of a child, or of a child and 
                the parent with whom the child is living.''.

SEC. 567. DEFINITION OF SUPPORT ORDER.

    Section 453 (42 U.S.C. 653) as amended by sections 516 and 546(b) 
of this Act, is amended by adding at the end the following:
    ``(o) Support Order Defined.--As used in this part, the term 
``support order'' means an order issued by a court or an administrative 
process established under State law that requires support and 
maintenance of a child or of a child and the parent with whom the child 
is living.''.

                      Subtitle H--Medical Support

SEC. 571. 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, 1996.--
        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, 1996, 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.

Subtitle I--Enhancing Responsibility and Opportunity for Nonresidential 
                                Parents

SEC. 581. GRANTS TO STATES FOR ACCESS AND VISITATION PROGRAMS.

    (a) In General.--Part D of title IV (42 U.S.C. 651-669) is amended 
by adding at the end the following:

``SEC. 469A. GRANTS TO STATES FOR ACCESS AND VISITATION PROGRAMS.

    (a) In General.--The Administration for Children and Families shall 
make grants under this section to enable States to establish and 
administer programs to support and facilitate absent parents' access to 
and visitation of their children, by means of activities including 
mediation (both voluntary and mandatory), counseling, education, 
development of parenting plans, visitation enforcement (including 
monitoring, supervision and neutral drop-off and pickup), and 
development of guidelines for visitation and alternative custody 
arrangements.
    ``(b) Amount of Grant.--The amount of the grant to be made to a 
State under this section for a fiscal year shall be an amount equal to 
the lesser of--
            ``(1) 90 percent of State expenditures during the fiscal 
        year for activities described in subsection (a); or
            ``(2) the allotment of the State under subsection (c) for 
        the fiscal year.
    ``(c) Allotments to States.--
            ``(1) In general.--The allotment of a State for a fiscal 
        year is the amount that bears the same ratio to the amount 
        appropriated pursuant to subsection (f) for the fiscal year as 
        the number of children in the State living with only 1 
        biological parent bears to the total number of such children in 
        all States.
            ``(2) Minimum allotment.--The Administration for Children 
        and Families shall adjust allotments to States under paragraph 
        (1) as necessary to ensure that no State is allotted less 
        than--
                    ``(A) $50,000 for fiscal year 1996 or 1997; or
                    ``(B) $100,000 for any succeeding fiscal year.
    ``(d) No Supplantation of State Expenditures for Similar 
Activities.--A State to which a grant is made under this section may 
not use the grant to supplant expenditures by the State for activities 
specified in subsection (a), but shall use the grant to supplement such 
expenditures at a level at least equal to the level of such 
expenditures for fiscal year 1995.
    ``(e) State Administration.-- Each State to which a grant is made 
under this section--
            ``(1) may administer State programs funded with the grant, 
        directly or through grants to or contracts with courts, local 
        public agencies, or non-profit private entities;
            ``(2) shall not be required to operate such programs on a 
        statewide basis; and
            ``(3) shall monitor, evaluate, and report on such programs 
        in accordance with regulations prescribed by the Secretary.''.

                    Subtitle J--Effect of Enactment

SEC. 591. EFFECTIVE DATES.

    (a) In General.--Except as otherwise specifically provided (but 
subject to subsections (b) and (c))--
            (1) provisions of this title requiring enactment or 
        amendment of State laws under section 466 of the Social 
        Security Act, or revision of State plans under section 454 of 
        such Act, shall be effective with respect to periods beginning 
        on and after October 1, 1996; and
            (2) all other provisions of this title shall become 
        effective upon enactment.
    (b) Grace Period for State Law Changes.--The provisions of this 
title shall become effective with respect to a State on the later of--
            (1) the date specified in this title, or
            (2) the effective date of laws enacted by the legislature 
        of such State implementing such provisions,
but in no event later than the first day of the first calendar quarter 
beginning after the close of the first regular session of the State 
legislature that begins after the date of enactment of this Act. For 
purposes of the previous sentence, in the case of a State that has a 2-
year legislative session, each year of such session shall be deemed to 
be a separate regular session of the State legislature.
    (c) Grace Period for State Constitutional Amendment.--A State shall 
not be found out of compliance with any requirement enacted by this 
title if the State is unable to so comply without amending the State 
constitution until the earlier of--
            (1) 1 year after the effective date of the necessary State 
        constitutional amendment; or
            (2) 5 years after the date of the enactment of this title.
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