[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 906 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 906

  To reform the child support enforcement system in order to maximize 
collections of child support payments on behalf of poor children in the 
                             United States.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 13, 1995

 Mr. Andrews introduced the following bill; which was referred to the 
Committee on Ways and Means and, in addition, to the Committees on the 
   Judiciary and Banking and Financial Services, 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 reform the child support enforcement system in order to maximize 
collections of child support payments on behalf of poor children in the 
                             United States.

    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 ``Child Support Enforcement Reform 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--EXPANDING COLLECTOR ACCESS TO INFORMATION

Sec. 101. Expansion of functions of Federal parent locator service.
Sec. 102. Expansion of databases accessed by parent locator systems.
Sec. 103. Expansion of access to national network for location of 
                            parents.
Sec. 104. Private access to locate and enforcement services.
Sec. 105. National reporting of new hires and child support 
                            information.
Sec. 106. Access to law enforcement records systems.
Sec. 107. Broadcasting of warrants on State networks.
Sec. 108. Access to financial records.
         TITLE II--NATIONAL RECOGNITION OF CHILD SUPPORT ORDERS

Sec. 201. Interstate recognition of child support and parentage orders.
Sec. 202. Service of process on Federal employees and members of the 
                            armed services in connection with 
                            proceedings relating to child support and 
                            parentage obligations.
Sec. 203. Presumed address of obligor and obligee.
Sec. 204. Notice to custodial parents.
Sec. 205. Uniform State rules in parentage and child support cases.
Sec. 206. Fair Credit Reporting Act amendment.
Sec. 207. Guideline principles.
Sec. 208. UIFSA endorsement.
Sec. 209. Uniform terms in orders.
         TITLE III--COST SHARING AND COLLECTIONS DISBURSEMENTS

Sec. 301. New system for determining cost sharing and disbursement of 
                            collected child support.
Sec. 302. Provision of child support enforcement services to families 
                            whose income exceeds 200 percent of the 
                            poverty line.
                    TITLE IV--ACCOUNTING AND REVIEWS

Sec. 401. Accounting.
Sec. 402. Reviews.
                        TITLE V--EFFECTIVE DATE

Sec. 501. Effective date.

           TITLE I--EXPANDING COLLECTOR ACCESS TO INFORMATION

SEC. 101. EXPANSION OF FUNCTIONS OF FEDERAL PARENT LOCATOR SERVICE.

    Section 453 of the Social Security Act (42 U.S.C. 653) is amended--
            (1) in subsection (a), by striking ``enforcing support 
        obligations against such parent'' and inserting ``establishing 
        parentage, establishing, modifying, and enforcing child support 
        obligations, and enforcing child visitation rights and 
        responsibilities, and which shall use safeguards to prevent the 
        disclosure of information in cases that would jeopardize the 
        safety of the custodial parent or any child of the custodial 
        parent'';
            (2) in subsection (b), by inserting after the 2nd sentence 
        the following: ``Information with respect to an absent parent 
        shall not be disclosed to any person if the disclosure would 
        jeopardize the safety of the custodial parent or any child of 
        the custodial parent. Information with respect to an absent 
        parent shall not be disclosed to any person (other than the 
        custodial parent) unless the custodial parent has been notified 
        in advance of the disclosure.''; and
            (3) in subsection (d), by inserting ``and such reasonable 
        fees'' after ``such documents''.

SEC. 102. EXPANSION OF DATABASES ACCESSED BY PARENT LOCATOR SYSTEMS.

    (a) Additional Information for Federal Parent Locator Service.--
Section 453 of the Social Security Act (42 U.S.C. 653) is amended--
            (1) in subsection (b), by striking ``the most recent 
        address and place of employment'' and inserting ``the most 
        recent residential address, employer name and address, and 
        amounts and nature of income and assets'';
            (2) in subsection (c)(3), by striking ``the resident 
        parent'' and inserting ``either parent''; and
            (3) in subsection (e), by adding at the end the following:
    ``(4) The Secretary of the Treasury shall enter into an agreement 
with the Secretary to provide prompt access by the Secretary (in 
accordance with this subsection and section 6103(l)(6) of the Internal 
Revenue Code of 1986) to the quarterly estimated Federal income tax 
returns filed by individuals with the Internal Revenue Service.''.
    (b) Federal Income Tax Return Information.--
            (1) In general.--Subparagraph (A) of section 6103(l)(8) of 
        the Internal Revenue Code of 1986 (relating to disclosure of 
        certain return information by Social Security Administration to 
        State and local child support enforcement agencies) is amended 
        by inserting ``the Federal Parent Locator Service or of'' 
        before ``a State or local''.
            (2) Conforming amendments.--
                    (A) Subparagraph (B) of section 6103(l)(8) of such 
                Code is amended by inserting ``in the case of 
                disclosure to a State or local child support 
                enforcement agency,'' after ``preceding sentence,''.
                    (B) The heading for paragraph (8) of section 
                6103(l) of such Code is amended by striking ``state and 
                local''.
    (c) State Information.--Section 466(a) of the Social Security Act 
(42 U.S.C. 666(a)) is amended by inserting after paragraph (11) the 
following:
            ``(12) Procedures under which the State child support 
        enforcement agency shall have automated on-line or batch access 
        (or, if necessary, nonautomated access) to information 
        regarding residential addresses, employers and employer 
        addresses, income and assets, and medical insurance benefits 
        with respect to absent parents that is available through any 
        database maintained by--
                    ``(A) any agency of the State or any political 
                subdivision thereof, that contains information on 
                residential addresses, or on employers and employer 
                addresses, as the State deems appropriate;
                    ``(B) any publicly regulated utility company 
                located in the State;
                    ``(C) any credit reporting agency located in the 
                State; and
                    ``(D) any trade or labor union located in the 
                State.
            ``(13) Procedures under which the State child support 
        enforcement agency shall--
                    ``(A) maintain a child support order registry which 
                shall include each child support order (or an abstract 
                thereof) issued or modified in the State on or after 
                the effective date of this paragraph; and
                    ``(B) transmit electronically to the Office of 
                Child Support Enforcement an abstract of each such 
                order, containing such information and in such form as 
                the Secretary may prescribe pursuant to section 
                452(a)(11).''.
    (d) Federal Registry of Abstracts of Child Support Orders.--Section 
452(a) of the Social Security Act (42 U.S.C. 652(a)), as amended by 
section 209(a) of this Act, is amended--
            (1) in paragraph (10), by striking ``and'' after the 
        semicolon;
            (2) in paragraph (11), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:
            ``(12) maintain a registry of all child support order 
        abstracts received from States pursuant to section 
        466(a)(13)(B).''.
    (e) Study.--The Secretary of Health and Human Services shall 
conduct a study of the databases in the Federal Government (other than 
the databases accessed through the amendments made by this section) 
which may assist the Federal Parent Locator Service in locating 
individuals owing child support obligations. The report of such study 
shall be submitted to the Congress not later than January 31, 1995.

SEC. 103. EXPANSION OF ACCESS TO NATIONAL NETWORK FOR LOCATION OF 
              PARENTS.

    (a) In General.--Section 453 of the Social Security Act (42 U.S.C. 
653) is amended by adding at the end the following:
    ``(g) The Secretary shall expand the Parent Locator Service to 
establish a national network based on the comprehensive statewide child 
support enforcement systems developed by the States, to--
            ``(1) allow each State to--
                    ``(A) locate any absent parent who owes child 
                support, for whom a child support obligation is being 
                established, or for whom an order for visitation is 
                being enforced, by--
                            ``(i) accessing the records of other State 
                        agencies and sources of locate information 
                        directly from one computer system to another; 
                        and
                            ``(ii) accessing Federal sources of locate 
                        information in the same fashion;
                    ``(B) access the files of other States to determine 
                whether there are other child support orders and obtain 
                the details of those orders;
                    ``(C) provide for both on-line and batch processing 
                of locate requests, with on-line access restricted to 
                cases in which the information is needed immediately 
                (for such reasons as court appearances) and batch 
                processing used to `troll' databases to locate 
                individuals or update information periodically; and
                    ``(D) direct locate requests to individual States 
                or Federal agencies, broadcast requests to selected 
                States, or broadcast cases to all States when there is 
                no indication of the source of needed information;
            ``(2) provide for a maximum of 48-hour turnaround time for 
        information to be broadcast and returned to a requesting State;
            ``(3) provide ready access to courts of the information on 
        the network by location of a computer terminal in each court; 
        and
            ``(4) access the registry of child support orders required 
        to be maintained by States pursuant to section 466(a)(13).''.
    (b) Expanded State Interaction With National Network.--Section 
454(16) (42 U.S.C. 654(16)) is amended--
            (1) by striking ``and (E)'' and inserting ``(E)''; and
            (2) by striking ``enforcement;'' and inserting 
        ``enforcement, and (F) to provide access to the national 
        network developed pursuant to section 453(g);''.

SEC. 104. PRIVATE ACCESS TO LOCATE AND ENFORCEMENT SERVICES.

    Section 466(a) of the Social Security Act (42 U.S.C. 666(a)), as 
amended by section 102(c) of this Act, is amended by inserting after 
paragraph (13) the following:
            ``(14)(A) Procedures under which private attorneys and pro 
        se obligees must (in accordance with regulations prescribed by 
        the Secretary in consultation with the Attorney General of the 
        United States) be given access to State locate resources and 
        through enforcement techniques of the State child support 
        enforcement agency, for the purpose of establishing, modifying, 
        and enforcing child support, visitation, and parentage orders 
        in accordance with safeguards established by the Secretary in 
        regulations--
                    ``(i) to provide the custodial parent advance 
                notice of any release of information with respect to a 
                noncustodial parent; and
                    ``(ii) to prevent release of information with 
                respect to a noncustodial parent if the release may 
                jeopardize the safety of the noncustodial parent, the 
                custodial parent, or any child of either parent.
            ``(B) The procedures described in subparagraph (A) must, if 
        the State provides for reasonable fees for the access referred 
        to in subparagraph (A), require the State to establish such 
        fees in accordance with guidelines developed and published by 
        the State that set schedules for such fees.''.

SEC. 105. NATIONAL REPORTING OF NEW HIRES AND CHILD SUPPORT 
              INFORMATION.

    (a) Federal Implementation of System.--
            (1) In general.--The Secretary of the Treasury, in 
        consultation with the Secretary of Labor, shall establish a 
        system of reporting of new employees by requiring employers to 
        provide a copy of every new employee's W-4 form to the 
        employment security agency of the State in which the employment 
        is located.
            (2) Expanded use of form.--The Secretary of the Treasury 
        shall modify the W-4 form to be completed by a new employee to 
        enable the employee to indicate on the form--
                    (A) whether the employee owes child support, and if 
                so--
                            (i) to whom the support is payable and the 
                        amount of the support payable; and
                            (ii) whether the support is to be paid 
                        through wage withholding; and
                    (B) whether health care insurance is available to 
                the new employee, and, if so, whether the new employee 
                has obtained such insurance for the dependent children 
                of the new employee.
            (3) Employer withholding obligation.--
                    (A) In general.--Subtitle C of the Internal Revenue 
                Code of 1986 (relating to employment taxes) is amended 
                by inserting after chapter 24 the following new 
                chapter:

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

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

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

    ``(a) Requirement of Withholding.--Every employer making payment of 
wages shall deduct and withhold upon such wages a specified child 
support obligation amount.
    ``(b) Specified Child Support Obligation Amount.--For purposes of 
this chapter, the specified child support obligation amount with 
respect to any employee shall be determined based on--
            ``(1) information provided by the employee, or (if an 
        agency of the State in which the employer is located notifies 
        the employer that such information is inaccurate) information 
        provided by the agency; and
            ``(2) information contained in any wage withholding order 
        received by the employer from any State.
    ``(c) Liability for Payment.--The employer shall be liable for the 
payment of the specified child support obligation amount to the payee 
identified by the employee.
    ``(d) Special Rules.--For purposes of this chapter (and so much of 
subtitle F as relates to this chapter), any specified child support 
obligation amount shall be treated as if it were a tax withheld under 
chapter 24 and rules similar to the rules of such chapter shall 
apply.''
                    (B) Clerical amendment.--The table of chapters of 
                subtitle C of the Internal Revenue Code of 1986 is 
                amended by inserting after the item relating to chapter 
                24 the following new item:

                              ``Chapter 24A. Child support obligations 
                                        collected at source.''
            (4) Withheld child support obligations reported on w-2 
        forms.--Subsection (a) of section 6051 of the Internal Revenue 
        Code of 1986 (relating to receipts for employees) is amended by 
        striking ``and'' at the end of paragraph (8), by striking the 
        period at the end of paragraph (9) and inserting ``, and'', and 
        by inserting after paragraph (9) the following new paragraph:
            ``(10) the total amount of specified child support 
        obligations withheld under section 3411.''
    (b) State Implementation of System.--Section 466(a) of the Social 
Security Act (42 U.S.C. 666(a)), as amended by sections 102(c) and 104 
of this Act, is amended by inserting after paragraph (14) the 
following:
            ``(15) Procedures under which the State shall--
                    ``(A) use the Parent Locator Service established 
                under section 453 to access information in the national 
                registry of child support orders maintained pursuant to 
                section 452(a)(12) with respect to new employee, 
                compare such information with the information reported 
                on W-4 forms of new employees, and identify child 
                support obligations not reported on such forms;
                    ``(B) if child support information from the W-4 
                form of a new employee agrees with information with 
                respect to the new employee in the national registry of 
                child support orders maintained pursuant to section 
                452(a)(12), notify the individual owed the support (or 
                the individual's designee) of such information;
                    ``(C) notify an employer of any new employee who 
                has not reported on the W-4 form a child support 
                obligation of the new employee;
                    ``(D) impose monetary penalties on--
                            ``(i) any individual who owes child support 
                        and fails to report the obligation to provide 
                        the support on a Federal income tax W-4 form at 
                        time of employment;
                            ``(ii) any employer who fails to forward a 
                        W-4 form for a new employee to the State 
                        employment security agency within 10 calendar 
                        days of the date of the first payroll from 
                        which the new employee is paid; and
                            ``(iii) any employer who fails to withhold 
                        from the pay of any new employee who reports a 
                        child support obligation on a W-4 form an 
                        amount equal to the support owed, or fails to 
                        pay to the individual owed the obligation the 
                        amount so withheld, within 10 calendar days of 
                        the date of the payroll, using electronic funds 
                        transfer, if possible, unless otherwise 
                        notified by a State agency;
                    ``(E) provide the services described in this 
                paragraph to any individual owed child support who 
                applies for assistance under the State plan; and
                    ``(F) on request of another State, broadcast over 
                the Parent Locator Service to such other State child 
                support information from W-4 forms that have been sent 
                to the State employment security agency.''.

SEC. 106. ACCESS TO LAW ENFORCEMENT RECORDS SYSTEMS.

    (a) Access by Child Support Enforcement Agencies.--The head of the 
National Criminal Information Center, the head of the National Law 
Enforcement Telecommunications Network, and the head of any other 
national or regional system for tracking individuals shall each--
            (1) allow Federal, State, and local child support 
        enforcement agencies access to the information of the system 
        for purposes of establishing paternity or a child support 
        obligation of an individual tracked by the system, using 
        appropriate safeguards to prevent improper release of such 
        information; and
            (2) if an access code is required to gain such access, 
        provide the access code to each child support enforcement 
        agency that applies for the code.
    (b) Loss of Federal Funding.--A non-Federal system for tracking 
individuals that fails to comply with paragraphs (1) and (2) of 
subsection (a) shall not be eligible to receive Federal funding for the 
system.

SEC. 107. BROADCASTING OF WARRANTS ON STATE NETWORKS.

    Section 466(a) of the Social Security Act (42 U.S.C. 666(a)), as 
amended by sections 102(c), 104, and 105(b) of this Act, is amended by 
inserting after paragraph (15) the following:
            ``(16) Procedures under which the State--
                    ``(A) shall broadcast on any State or local crime 
                information system each failure-to-appear warrant, 
                capias, and bench warrant issued by a State court in 
                any proceeding related to child support; and
                    ``(B) shall, in a criminal case, remit to any 
                individual to whom the defendant owes child support any 
                security posted by or on behalf of the defendant and 
                forfeited, to the extent of any arrearage in the 
                payment of the support.''.

SEC. 108. ACCESS TO FINANCIAL RECORDS.

    Section 466(a) of the Social Security Act (42 U.S.C. 666(a)), as 
amended by sections 102(c), 104, 105(b), and 107 of this Act, is 
amended by inserting after paragraph (16) the following:
            ``(17) Procedures under which the State may obtain access 
        to financial records maintained with respect to any person by 
        any financial institution doing business in the State, for the 
        purpose of establishing or enforcing a child support obligation 
        of the person.''.

         TITLE II--NATIONAL RECOGNITION OF CHILD SUPPORT ORDERS

SEC. 201. INTERSTATE RECOGNITION OF CHILD SUPPORT AND PARENTAGE ORDERS.

    (a) In General.--Chapter 115 of title 28, United States Code, is 
amended by inserting after section 1738A the following:
``Sec. 1738B. Full faith and credit to child support and parentage 
              orders
    ``(a) Definitions.--As used in this section:
            ``(1) The term `child' means any individual who has not 
        attained the age of 18 years, and any individual who has 
        attained the age of 18 years for whom a child support order has 
        been issued pursuant to the laws of a State.
            ``(2) The term `child support' includes periodic and lump-
        sum payments for current and past due economic support, 
        payments of premiums for health insurance for children, 
        payments for or provision of child care, and payments for 
        educational expenses.
            ``(3) The term `child support order' means a judgment, 
        decree or order of a court requiring the payment of money, 
        whether in periodic amounts or lump sum, for the support of a 
        child and includes permanent and temporary orders, initial 
        orders and modifications, ongoing support and arrearages.
            ``(4) The term `child's State' means, with respect to a 
        child, the State in which the child resides with a parent or an 
        individual acting as a parent.
            ``(5) The term `contestant' means an individual, including 
        a parent, who claims a right to receive child support or is 
        under an order to pay child support, and includes States and 
        political subdivisions to which support rights have been 
        assigned.
            ``(6) The term `court' means a court, administrative 
        process, or quasijudicial process of a State that is authorized 
        to--
                    ``(A) adjudicate parentage;
                    ``(B) establish the amount of support payable by a 
                contestant; or
                    ``(C) modify the amount of support payable by a 
                contestant.
            ``(7) The term `home State' means, with respect to a child, 
        the State in which, immediately preceding the time involved, 
        the child lived with his or her parents, a parent, or an 
        individual acting as parent, for at least 6 consecutive months 
        (including any periods of temporary absence), and if the child 
        has not attained the age of 6 months, the State in which the 
        child lived from birth with any of such individuals.
            ``(8) The term `individual acting as a parent' means an 
        individual, other than a parent, who has physical custody of a 
        child and who has either been awarded custody by a court or 
        claims a right to custody.
            ``(9) The terms `modification' and `modify' refer to a 
        change in a child support order or an order adjudicating 
        parentage that modifies, replaces, supersedes, or otherwise is 
        made subsequent to such prior order, whether or not made by the 
        same court that issued such prior order.
            ``(10) The term `State' means a State of the United States, 
        the District of Columbia, the Commonwealth of Puerto Rico, a 
        territory or possession of the United States, and Indian 
        country as defined in section 1151 of title 18, United States 
        Code.
    ``(b) Full Faith and Credit.--The courts of each State shall 
recognize and enforce according to its terms a child support order or 
an order adjudicating parentage against an individual over whom 
personal jurisdiction has been exercised consistent with this section, 
and shall not modify such an order except as provided in subsection 
(f).
    ``(c) Bases of Jurisdiction.--A court of a State may exercise 
personal jurisdiction over a nonresident contestant if there is any 
basis consistent with the constitution of the State and the 
Constitution of the United States for the exercise.
    ``(d) Continuing Exclusive Jurisdiction.--A court of a State which 
has issued a child support order or an order adjudicating parentage 
consistent with this section shall have continuing, exclusive 
jurisdiction of the order for so long as the State remains the child's 
State or the residence of any contestant, unless another State, acting 
in accordance with subsection (f), has modified the order.
    ``(e) Notice and Hearing.--Before a court of a State makes a child 
support order or adjudicates parentage, reasonable notice and 
opportunity to be heard shall be given to the contestants.
    ``(f) Modification.--A court of a State may modify a child support 
order or an order adjudicating parentage issued by a court of another 
State if--
            ``(1) each contestant has filed written consent for the 
        court of the State to modify the order and assume continuing, 
        exclusive jurisdiction of the order; and
            ``(2) the court of the State otherwise has jurisdiction to 
        issue such an order.
    ``(g) Enforcement of Prior Orders.--A court of a State which no 
longer has continuing, exclusive jurisdiction of a child support order 
or an order adjudicating parentage may enforce the order with respect 
to unsatisfied obligations which accrued before the date the order is 
modified in accordance with subsection (f).
    ``(h) Withholding Exercise of Jurisdiction.--A court of a State 
shall not exercise jurisdiction in any proceeding for a child support 
order or an adjudication of parentage commenced during the pendency of 
a proceeding in a court of another State when the court of the other 
State is exercising jurisdiction consistent with this section unless--
            ``(1) the proceeding was filed in the State before the 
        expiration of time allowed in the other State for filing a 
        responsive pleading challenging the exercise of jurisdiction by 
        the other State;
            ``(2) the contesting party timely challenges the exercise 
        of jurisdiction by the other State; and
            ``(3) if applicable, the court is in the home State of the 
        child.
    ``(i) Choice of Law.--(1) Except as provided in paragraphs (2) and 
(3), the forum State's law shall apply in a proceeding to establish, 
modify, or enforce a child support order or an order adjudicating 
parentage.
    ``(2) The courts of a State shall apply the law of the State that 
issued a child support order or an order adjudicating parentage in 
interpreting such an order.
    ``(3) In an action to enforce a child support order or an order 
adjudicating parentage, the statute of limitations under the laws of 
the forum State or the issuing State, whichever is longer, shall 
apply.''.
    (b) Clerical Amendment.--The chapter analysis for such chapter is 
amended by inserting after the item relating to section 1738A the 
following:

``1738B. Full faith and credit to child support and parentage 
                            orders.''.

SEC. 202. SERVICE OF PROCESS ON FEDERAL EMPLOYEES AND MEMBERS OF THE 
              ARMED SERVICES IN CONNECTION WITH PROCEEDINGS RELATING TO 
              CHILD SUPPORT AND PARENTAGE OBLIGATIONS.

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

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

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

SEC. 203. PRESUMED ADDRESS OF OBLIGOR AND OBLIGEE.

    Section 466(a) of the Social Security Act (42 U.S.C. 666(a)), as 
amended by sections 102(c), 104, 105(b), and 107, and 108 of this Act, 
is amended by inserting after paragraph (17) the following:
            ``(18) Procedures under which the State shall--
                    ``(A) require the court or administrative agency 
                with authority to issue the final order in a child 
                support or parentage case to require each party subject 
                to the order to file with the court or administrative 
                agency, on or before the date the order is issued--
                            ``(i) the party's residential address or 
                        addresses;
                            ``(ii) the party's mailing address or 
                        addresses;
                            ``(iii) the party's home telephone number 
                        or numbers;
                            ``(iv) the party's driver's license number;
                            ``(v) the party's social security account 
                        number;
                            ``(vi) the name of each employer of the 
                        party;
                            ``(vii) the addresses of each place of 
                        employment of the party; and
                            ``(viii) the party's work telephone number 
                        or numbers;
                    ``(B) require the court or administrative agency in 
                any action related to child support to presume, for the 
                purpose of providing sufficient notice (other than the 
                initial notice in an action to establish parentage or a 
                child support order), that the noncustodial parent 
                resides at the last residential address given by the 
                noncustodial parent to the court or agency, or a more 
                recent address provided in good faith by the parent 
                owed the support obligation; and
                    ``(C) ensure that information concerning the 
                location of a custodial parent or a child of the 
                custodial parent is not released to a noncustodial 
                parent if a court order has been issued against the 
                noncustodial parent for the physical protection of the 
                custodial parent or the child.''.

SEC. 204. NOTICE TO CUSTODIAL PARENTS.

    Section 454 of the Social Security Act (42 U.S.C. 654) is amended--
            (1) by striking ``and'' at the end of paragraph (23);
            (2) by striking the period at the end of paragraph (24) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (24) the following:
            ``(25) provide that the agency administering the plan--
                    ``(A) shall make reasonable attempts to provide 
                timely notice to any individual owed child support of 
                any proceeding to establish, modify, or enforce the 
                support obligation;
                    ``(B) shall not delay any such proceeding solely 
                due to the failure of the custodial parent to appear; 
                and
                    ``(C) shall, within 14 days after the date an order 
                that establishes, modifies, or enforces a child support 
                obligation is issued, provide the custodial parent of 
                the child with a copy of the order.''.

SEC. 205. UNIFORM STATE RULES IN PARENTAGE AND CHILD SUPPORT CASES.

    Section 466(a) of the Social Security Act (42 U.S.C. 666(a)), as 
amended by sections 102(c), 104, 105(b), 107, 108, and 203 of this Act, 
is amended by inserting after paragraph (18) the following:
            ``(19) Procedures under which, in the State--
                    ``(A) a party may, in a single cause of action, 
                seek judicial determination of the parentage of a child 
                and judicial establishment of a child support order 
                with respect to the child;
                    ``(B) the venue for determination of parentage of a 
                child shall be in the county of residence of the child;
                    ``(C) a court or agency that issues a parentage or 
                child support order shall have continuing and exclusive 
                jurisdiction over the order until the court or agency 
                transfers such jurisdiction to the appropriate court or 
                agency in the county of residence of the child, or the 
                parties consent to be bound by another court or agency 
                in the State that has subject matter jurisdiction;
                    ``(D) proceedings to enforce or modify of a child 
                support order may be transferred to the city, county, 
                or district in which the child resides without any 
                requirement that the order be filed or the defendant be 
                served again;
                    ``(E) a court or agency that hears a parentage or 
                child support cases shall have statewide jurisdiction 
                over the parties to the case, and the parentage and 
                child support orders issued by the court or agency 
                shall have statewide effect for enforcement purposes; 
                and
                    ``(F) denial of visitation rights may not be used 
                as a defense in an action to enforce an obligation to 
                provide child support and the failure to provide child 
                support may not be used as a defense in an action to 
                enforce visitation rights.''.

SEC. 206. FAIR CREDIT REPORTING ACT AMENDMENT.

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

SEC. 207. GUIDELINE PRINCIPLES.

    Section 467 of the Social Security Act (42 U.S.C. 667) is amended 
by adding at the end the following:
    ``(d) The guidelines established pursuant to subsection (a) shall 
be based on, and applied in accordance with, the following principles:
            ``(1) A change in the child support amount resulting from 
        the application of the guidelines since the entry of the last 
        support order is sufficient reason for modification of a child 
        support obligation without the necessity of showing any other 
        change in circumstance. The State may set a minimum timeframe 
        between reviews of modifications based on the guidelines, 
        absent other changes in circumstances.
            ``(2) Not later than 1995, each State shall establish 
        automatic child support order review procedures based on the 
        automated calculation of the amount of support to which a child 
        is entitled, to ensure that the amount is sufficient to meet 
        the needs of the child, and takes into account any changes in 
        the income of the parents of the child.
            ``(3) The State shall advise any custodial parent who is 
        not receiving aid under a State plan approved under part A of 
        the review of a child support award made with respect to a 
        child of the custodial parent, of any proposed modification in 
        the amount of the award based on the review, and of the right 
        of the custodial parent to decline to seek the modification.
    ``(e) The guidelines established pursuant to subsection (a) may 
consider the treatment of the following:
            ``(1) Work-related or job-training-related child care 
        expenses of either parent for the care of children of either 
        parent.
            ``(2) Health insurance and related uninsured health care 
        expenses, and school expenses incurred on behalf of the child 
        for whom the child support order is sought.
            ``(3) Multiple family child raising obligations other than 
        those for the child for whom the child support order is sought.
    ``(f) Each State must publish the guidelines established pursuant 
to subsection (a).''.

SEC. 208. UIFSA ENDORSEMENT.

    Section 466 of the Social Security Act (42 U.S.C. 666) is amended 
by adding at the end the following new subsection:
    ``(f) In order to satisfy section 454(20)(A), each State must have 
in effect laws which adopt without material change the officially 
approved version of the Uniform Interstate Family Support Act adopted 
by the National Conference of Commissioners on Uniform State Laws and 
approved by the American Bar Association House of Delegates on February 
9, 1993.''.

SEC. 209. UNIFORM TERMS IN ORDERS.

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

         TITLE III--COST SHARING AND COLLECTIONS DISBURSEMENTS

SEC. 301. NEW SYSTEM FOR DETERMINING COST SHARING AND DISBURSEMENT OF 
              COLLECTED CHILD SUPPORT.

    (a) State Plan Requirement.--Section 454 of the Social Security Act 
(42 U.S.C. 654) is amended--
            (1) by striking ``and'' at the end of paragraph (23);
            (2) by striking the period at the end of paragraph (24) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (24) the following:
            ``(25) provide that the State shall make payments to the 
        Secretary in accordance with section 455.''.
    (b) Payments by States With Respect to Collections Regarding 
Children Receiving Aid to Families With Dependent Children.--Section 
455 of such Act (42 U.S.C. 655) is amended to read as follows:

``SEC. 455. PAYMENTS BY STATES.

    ``(a) In General.--Each State with a plan approved under this part 
for a fiscal year shall pay to the Secretary for the year an amount 
equal to the adjusted AFDC percentage of the net AFDC child support 
collections of the State during the year.
    ``(b) Definitions.--As used in this section:
            ``(1) Adjusted afdc percentage.--The term `adjusted AFDC 
        percentage' means, with respect to a State and a fiscal year--
                    ``(A) the AFDC percentage of the State for the 
                fiscal year; minus
                    ``(B) the number of percentage points (if any) by 
                which the State performance percentage exceeds the 
                performance standard for the fiscal year.
            ``(2) AFDC percentage.--The term `AFDC percentage' means, 
        with respect to a State and a fiscal year--
                    ``(A) if the State has exercised the option 
                provided for in section 1118, the Federal medical 
                assistance percentage referred to in such section; or
                    ``(B) if the State has not exercised the option--
                            ``(i) the Federal percentage (as defined in 
                        section 1101(a)(8)), in the case of any State 
                        other than Puerto Rico, the Virgin Islands, 
                        Guam, or American Samoa; or
                            ``(ii) 50 percent, in the case of Puerto 
                        Rico, the Virgin Islands, Guam, and American 
                        Samoa.
            ``(3) Net afdc child support collections.--The term `net 
        AFDC child support collections' means, with respect to a State 
        and a fiscal year--
                    ``(A) the total amount of child support (including 
                past-due support) collected by the State during the 
                fiscal year with respect to children receiving aid 
                under the State plan approved under part A; minus
                    ``(B) the total amount expended by the State during 
                the fiscal year with respect to the collection of child 
                support for such children, including any amount 
                distributed by the State during the fiscal year 
                pursuant to section 457(b)(1).
            ``(4) Performance standard.--
                    ``(A) In general.--The term `performance standard' 
                means 30 percent.
                    ``(B) Limited authority to change performance 
                standard.--The Secretary shall annually review the 
                performance standard in effect under this section and 
                determine whether the standard is appropriate in 
                achieving the purposes of this title, and may increase 
                or decrease the performance standard in effect for the 
                fiscal year to not more than 40 percent and not less 
                than 20 percent, as the Secretary deems appropriate.
            ``(5) State performance percentage.--The term `State 
        performance percentage' means, with respect to a State and a 
        fiscal year--
                    ``(A) the net AFDC child support collections of the 
                State during the fiscal year; divided by
                    ``(B) the sum of--
                            ``(i) the total amount of child support 
                        (excluding past-due support) payable during the 
                        fiscal year with respect to children receiving 
                        aid under the State plan approved under part A; 
                        and
                            ``(ii) the total amount of past-due child 
                        support collected during the fiscal year with 
                        respect to such children.''.
    (c) Payments to States With Respect to Children who are not 
Eligible for Aid to Families With Dependent Children.--Section 458 of 
such Act (42 U.S.C. 658) is amended to read as follows:

``SEC. 458. PAYMENTS TO STATES.

    ``(a) In General.--From the sums appropriated therefor, the 
Secretary shall pay to each State for each calendar quarter an amount 
equal to the adjusted AFDC percentage of the qualified collection costs 
of the State for the quarter.
    ``(b) Definitions.--As used in this section:
            ``(1) Adjusted afdc percentage.--The term `adjusted AFDC 
        percentage' means, with respect to a State and a quarter in a 
        fiscal year--
                    ``(A) the AFDC percentage of the State for the 
                fiscal year; plus
                    ``(B) the number of percentage points (if any) by 
                which the State performance percentage for the 
                immediately preceding fiscal year exceeds the 
                performance standard for such preceding fiscal year.
            ``(2) AFDC percentage.--The term `AFDC percentage' means, 
        with respect to a State and a quarter in a fiscal year--
                    ``(A) if the State has exercised the option 
                provided for in section 1118, the Federal medical 
                assistance percentage referred to in such section; or
                    ``(B) if the State has not exercised the option--
                            ``(i) the Federal percentage (as defined in 
                        section 1101(a)(8)), in the case of any State 
                        other than Puerto Rico, the Virgin Islands, 
                        Guam, or American Samoa; or
                            ``(ii) 50 percent, in the case of Puerto 
                        Rico, the Virgin Islands, Guam, and American 
                        Samoa.
            ``(3) Qualified net collections.--The term `qualified net 
        collections' means, with respect to a State and a quarter in a 
        fiscal year--
                    ``(A) the total amount of child support (including 
                past-due support) collected by the State during the 
                fiscal year with respect to qualified children; minus
                    ``(B) the qualified collection costs of the State 
                during the fiscal year.
            ``(4) Qualified collection costs.--The term `qualified 
        collection costs' means, with respect to a State and a quarter 
        in a fiscal year, the total amount expended by the State during 
        the fiscal year with respect to the collection of child support 
        for qualified children.
            ``(5) Qualified children.--The term `qualified children' 
        means, with respect to a State, children--
                    ``(A) who are not receiving aid under the State 
                plan approved under part A;
                    ``(B) whose family income does not exceed 200 
                percent of the poverty line; and
                    ``(C) with respect to whom support is owed pursuant 
                to a child support order issued or modified in the 
                State.
            ``(6) Performance standard.--The term `performance 
        standard' means, with respect to a quarter in a fiscal year, 75 
        percent of the greatest State performance percentage of any 
        State for the immediately preceding fiscal year.
            ``(7) Poverty line.--The term `poverty line' means the 
        income official poverty line (as defined by the Office of 
        Management and Budget, and revised annually in accordance with 
        section 673(2) of the Omnibus Budget Reconciliation Act of 
        1981) applicable to a family of the size involved.
            ``(8) State performance percentage.--The term `State 
        performance percentage' means, with respect to a State and a 
        quarter in a fiscal year--
                    ``(A) the qualified net collections of the State 
                during the fiscal year; divided by
                    ``(B) the sum of--
                            ``(i) the total amount of child support 
                        (excluding past-due support) payable during the 
                        fiscal year with respect to qualified children; 
                        and
                            ``(ii) the total amount of past-due child 
                        support collected during the fiscal year with 
                        respect to such children.
    ``(c) Estimated Payments.--
            ``(1) Estimate required.--
                    ``(A) In general.--Before the beginning of each 
                quarter, the Secretary shall estimate the amount to 
                which each State will be entitled under subsection (a) 
                for the quarter.
                    ``(B) Contents of estimate.--The estimate shall be 
                based on--
                            ``(i) a report filed by the State that 
                        contains--
                                    ``(I) an estimate by the State of 
                                the total sum to be expended by the 
                                State in the quarter in accordance with 
                                subsection (a);
                                    ``(II) a statement of the amount 
                                appropriated or made available by the 
                                State and the political subdivisions of 
                                the State for such expenditures in the 
                                quarter; and
                                    ``(III) if the amount referred to 
                                in clause (ii) is less than the State's 
                                proportionate share of the total sum of 
                                such estimated expenditures, the source 
                                of sources from which the State expects 
                                the difference to be derived; and
                            ``(ii) such other investigation as the 
                        Secretary may find necessary.
            ``(2) Amount of payment.--After making the estimate 
        required by paragraph (1) of this subsection with respect to a 
        State for a quarter, the Secretary shall, subject to subsection 
        (d), pay to the State, in such installments as the Secretary 
        may determine, the amount so estimated, reduced or increased to 
        the extent of any overpayment or underpayment which the 
        Secretary determines was made under this section to the State 
        for any prior quarter and with respect to which adjustment has 
        not been made under this subsection.
            ``(3) Special rules for last 3 quarters of fiscal year 
        1996.--The Secretary shall, subject to subsection (d), pay to 
        the State, for each of the 2nd, 3rd, and 4th quarters of fiscal 
        year 1996, an amount equal to 60 percent of the total amount 
        paid to the State under this part (as in effect immediately 
        before the enactment of this section) with respect to qualified 
        children for the corresponding quarter of fiscal year 1995, 
        reduced or increased to the extent of any overpayment or 
        underpayment which the Secretary determines was made under this 
        section to the State for any prior quarter and with respect to 
        which adjustment has not been made under this subsection.
    ``(d) Reports Required.--Notwithstanding any other provision of 
law, no amount shall be paid to any State under this section for any 
quarter, before the close of the quarter, unless the State has 
submitted to the Secretary, with respect to each prior quarter (other 
than the last 2 quarters) for which payment is authorized to be made to 
the State under subsection (a), a full and complete report (in such 
form and manner and containing such information as the Secretary shall 
prescribe or require) on the amount of child support collected and 
disbursed by the State and all expenditures by the State with respect 
to which payment is authorized under subsection (a).''.
    (c) Conforming Amendment.--Section 457(b)(2) of such Act (42 U.S.C. 
657(b)(2)) is amended by striking ``to the extent of its participation 
in the financing'' and inserting ``pursuant to section 455(a)''.

SEC. 302. PROVISION OF CHILD SUPPORT ENFORCEMENT SERVICES TO FAMILIES 
              WHOSE INCOME EXCEEDS 200 PERCENT OF THE POVERTY LINE.

    (a) State Option To Provide Services.--Section 454(6)(A) of the 
Social Security Act (42 U.S.C. 654(6)(A)) is amended by inserting 
``whose family income does not exceed 200 percent of the poverty line 
(as determined under section 652 of the Omnibus Budget Reconciliation 
Act of 1981), and, at the option of the State, to any individual not 
otherwise eligible for such services who family income exceeds 200 
percent of the poverty line,'' before ``upon application''.
    (b) State Option To Impose Increased Fee for Services.--Section 
454(6)(B)(i) of the Social Security Act (42 U.S.C. 654(6)(B)(i)) is 
amended by inserting ``for individuals whose family income does not 
exceed 200 percent of the poverty line, or (if the State elects to 
impose a higher fee for services provided to individuals whose family 
income does not exceed 200 percent of the poverty line) such greater 
amount as the State may establish for individuals whose family income 
does not exceed 200 percent of the poverty line,'' after ``$25''.

                    TITLE IV--ACCOUNTING AND REVIEWS

SEC. 401. ACCOUNTING.

    The Secretary of Health and Human Services, in consultation with 
the Comptroller General of the United States, shall develop guidelines 
to be used in accounting for costs for purposes of sections 455 and 458 
of the Social Security Act, which shall provide for the costs described 
in such section 455 to be accounted for separately from the costs 
described in such section 458.

SEC. 402. REVIEWS.

    (a) Review.--The Comptroller General of the United States shall 
conduct a review of--
            (1) the system for reviewing the activities of States 
        pursuant to part D of title IV of the Social Security Act;
            (2) the information reporting requirements imposed on 
        States under such part.
    (b) Report to the Congress.--The Comptroller General shall submit 
to the Secretary of Health and Human Services a report that contains 
recommendations on how to improve and simplify the matters described in 
subsection (a).

                        TITLE V--EFFECTIVE DATE

SEC. 501. EFFECTIVE DATE.

    This Act and the amendments made by this Act shall take effect on 
January 1, 1996.
                                 <all>