[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 442 Introduced in Senate (IS)]







104th CONGRESS
  1st Session
                                 S. 442

To improve and strengthen the child support collection system, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

            February 16 (legislative day, January 30), 1995

  Ms. Snowe (for herself and Mr. Dole) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To improve and strengthen the child support collection system, and for 
                            other purposes.

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

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

    (a) Short Title.--This Act may be cited as the ``Child Support 
Responsibility Act of 1995''.
    (b) Reference to Social Security Act.--Except as otherwise 
specifically provided, wherever in this Act an amendment is expressed 
in terms of an amendment to or repeal of a section or other provision, 
the reference shall be considered to be made to that section or other 
provision of the Social Security Act.
    (c) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; reference; table of contents.
      TITLE I--IMPROVEMENTS TO THE CHILD SUPPORT COLLECTION SYSTEM

Subtitle A--Eligibility and Other Matters Concerning Title IV-D Program 
                                Clients

Sec. 101. State obligation to provide paternity establishment and child 
                            support enforcement services.
Sec. 102. Distribution of payments.
Sec. 103. Due process rights.
Sec. 104. Privacy safeguards.
             Subtitle B--Program Administration and Funding

Sec. 111. Federal matching payments.
Sec. 112. Performance-based incentives and penalties.
Sec. 113. Federal and State reviews and audits.
Sec. 114. Required reporting procedures.
Sec. 115. Automated data processing requirements.
Sec. 116. Director of CSE program; staffing study.
Sec. 117. Funding for secretarial assistance to State programs.
Sec. 118. Data collection and reports by the Secretary.
                  Subtitle C--Locate and Case Tracking

Sec. 121. Central State and case registry.
Sec. 122. Centralized collection and disbursement of support payments.
Sec. 123. Amendments concerning income withholding.
Sec. 124. Locator information from interstate networks.
Sec. 125. Expanded Federal Parent Locator Service.
Sec. 126. Use of Social Security numbers.
         Subtitle D--Streamlining and Uniformity of Procedures

Sec. 131. Adoption of uniform State laws.
Sec. 132. Improvements to full faith and credit for child support 
                            orders.
Sec. 133. State laws providing expedited procedures.
                  Subtitle E--Paternity Establishment

Sec. 141. State laws concerning paternity establishment.
Sec. 142. Outreach for voluntary paternity establishment.
      Subtitle F--Establishment and Modification of Support Orders

Sec. 151. National Child Support Guidelines Commission.
Sec. 152. Simplified process for review and adjustment of child support 
                            orders.
               Subtitle G--Enforcement of Support Orders

Sec. 161. Federal income tax refund offset.
Sec. 162. Internal Revenue Service collection of arrearages.
Sec. 163. Authority to collect support from Federal employees.
Sec. 164. Enforcement of child support obligations of members of the 
                            Armed Forces.
Sec. 165. Motor vehicle liens.
Sec. 166. Voiding of fraudulent transfers.
Sec. 167. State law authorizing suspension of licenses.
Sec. 168. Reporting arrearages to credit bureaus.
Sec. 169. Extended statute of limitation for collection of arrearages.
Sec. 170. Charges for arrearages.
Sec. 171. Denial of passports for nonpayment of child support.
Sec. 172. International child support enforcement.
                      Subtitle H--Medical Support

Sec. 181. Technical correction to ERISA definition of medical child 
                            support order.
  TITLE II--INCREASED ACCESS TO FINANCIAL INFORMATION OF NONCUSTODIAL 
           PARENTS AND ADDITIONAL IMPROVEMENTS IN ENFORCEMENT

Sec. 201. Nonliability for depository institutions providing financial 
                            records to State child support enforcement 
                            agencies in child support cases.
Sec. 202. Access to and use of consumer reports by State child support 
                            enforcement agencies in child support 
                            cases.
Sec. 203. Health care support.
Sec. 204. Annual reports on State compliance with time limits within 
                            which State must provide certain child 
                            support assistance.
Sec. 205. Wages withheld by employers to pay child support obligations 
                            required to be paid to State within 10 
                            days; late payment penalty imposed on 
                            employers.
Sec. 206. National Parent Locator Network.
                       TITLE III--EFFECTIVE DATES

Sec. 301. Effective dates.

      TITLE I--IMPROVEMENTS TO THE CHILD SUPPORT COLLECTION SYSTEM

Subtitle A--Eligibility and Other Matters Concerning Title IV-D Program 
                                Clients

SEC. 101. STATE OBLIGATION TO PROVIDE PATERNITY ESTABLISHMENT AND CHILD 
              SUPPORT ENFORCEMENT SERVICES.

    (a) State Law Requirements.--Section 466(a) (42 U.S.C. 666(a)) is 
amended by adding at the end the following new paragraph:
            ``(12) Procedures under which--
                    ``(A) every child support order established or 
                modified in the State on or after October 1, 1998, is 
                recorded in the central case registry established in 
                accordance with section 454A(e);
                    ``(B) child support payments are collected through 
                the centralized collections unit established in 
                accordance with section 454B--
                            ``(i) on and after October 1, 1998, under 
                        each order subject to wage withholding under 
                        section 466(b); and
                            ``(ii) on and after October 1, 1999, under 
                        each other order required to be recorded in 
                        such central case registry under this paragraph 
                        or section 454A(e), except as provided in 
                        subparagraph (C); and
                    ``(C)(i) parties subject to a child support order 
                described in subparagraph (B)(ii) may opt out of the 
                procedure for payment of support through the 
                centralized collections unit (but not the procedure for 
                inclusion in the central case registry) by filing with 
                the State agency a written agreement, signed by both 
                parties, to an alternative payment procedure; and
                    ``(ii) an agreement described in clause (i) becomes 
                void whenever either party advises the State agency of 
                an intent to vacate the agreement.''.
    (b) State Plan Requirements.--Section 454 (42 U.S.C. 654) is 
amended--
            (1) by striking paragraph (4) and inserting the following 
        new paragraph:
            ``(4) provide that such State will undertake--
                    ``(A) to provide appropriate services under this 
                part to--
                            ``(i) each child with respect to whom an 
                        assignment is effective under section 
                        402(a)(26), 471(a)(17), or 1912 (except 
in cases in which the State agency determines, in accordance with 
paragraph (25), that it is against the best interests of the child to 
do so); and
                            ``(ii) each child not described in clause 
                        (i)--
                                    ``(I) with respect to whom an 
                                individual applies for such services; 
                                and
                                    ``(II) on and after October 1, 
                                1998, with respect to whom a support 
                                order is recorded in the central State 
                                case registry established under section 
                                454A, regardless of whether application 
                                is made for services under this part; 
                                and
                    ``(B) to enforce the support obligation established 
                with respect to the custodial parent of a child 
                described in subparagraph (A) unless the parties to the 
                order which establishes the support obligation have 
                opted, in accordance with section 466(a)(12)(C), for an 
                alternative payment procedure.''; and
            (2) in paragraph (6)--
                    (A) by striking ``provide that'' and all that 
                follows through subparagraph (A) and inserting the 
                following:
            ``provide that--
                    ``(A) services under the State plan shall be made 
                available to nonresidents on the same terms as to 
                residents;'';
                    (B) in subparagraph (B)--
                            (i) by inserting ``on individuals not 
                        receiving assistance under part A'' after 
                        ``such services shall be imposed''; and
                            (ii) by inserting ``but no fees or costs 
                        shall be imposed on any absent or custodial 
                        parent or other individual for inclusion in the 
                        central State registry maintained pursuant to 
                        section 454A(e);'';
                    (C) in each of subparagraphs (B), (C), and (D), by 
                indenting such subparagraph and aligning its left 
                margin with the left margin of subparagraph (A); and
                    (D) in each of subparagraphs (B) and (C), by 
                striking the final comma and inserting a semicolon.
    (c) Conforming Amendments.--
            (1) Paternity establishment percentage.--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)''.
            (2) State plan.--Section 454(23) (42 U.S.C. 654(23)) is 
        amended, effective October 1, 1998, by striking ``information 
        as to any application fees for such services and''.
            (3) Procedures to improve enforcement.--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) Definition of overdue support.--Section 466(e) (42 
        U.S.C. 666(e)) is amended by striking ``or (6)''.

SEC. 102. DISTRIBUTION OF PAYMENTS.

    (a) Distributions Through State Child Support Enforcement Agency to 
Former Assistance Recipients.--Section 454(5) (42 U.S.C. 654(5)) is 
amended--
            (1) in subparagraph (A)--
                    (A) by inserting ``except as otherwise specifically 
                provided in section 464 or 466(a)(3),'' after ``is 
                effective,''; and
                    (B) by striking ``except that'' and all that 
                follows through the semicolon; and
            (2) in subparagraph (B), by striking ``, except'' and all 
        that follows through ``medical assistance''.
    (b) Distribution to a Family Currently Receiving AFDC.--Section 457 
(42 U.S.C. 657) is amended--
            (1) by striking subsection (a) and redesignating subsection 
        (b) as subsection (a);
            (2) in subsection (a), as redesignated--
                    (A) in the matter preceding paragraph (2), to read 
                as follows:
    ``(a) In the Case of a Family Receiving AFDC.--Amounts collected 
under this part during any month as support of a child who is receiving 
assistance under part A (or a parent or caretaker relative of such a 
child) shall (except in the case of a State exercising the option under 
subsection (b)) be distributed as follows:
            ``(1) an amount equal to the amount that will be 
        disregarded pursuant to section 402(a)(8)(A)(vi) shall be taken 
        from each of the--
                    ``(A) amounts received in a month which represent 
                payments for that month; and
                    ``(B) amounts received in a month which represent 
                payments for a prior month which were made by the 
                absent parent;
        and shall be paid to the family without affecting its 
        eligibility for assistance or decreasing any amount otherwise 
        payable as assistance to such family during such month;''; and
                    (B) in paragraph (4), by striking ``or (B)'' and 
                all that follows through the period and inserting ``; 
                then (B) from any remainder, amounts equal to 
                arrearages of such support obligations assigned, 
                pursuant to part A, to any other State or States shall 
                be paid to such other State or States and used to pay 
                any such arrearages (with appropriate reimbursement of 
                the Federal Government to the extent of its 
                participation in the financing); and then (C) any 
                remainder shall be paid to the family.''; and
            (3) by inserting after subsection (a), as redesignated, the 
        following new subsection:
    ``(b) Alternative Distribution in Case of Family Receiving AFDC.--
In the case of a State electing the option under this subsection, 
amounts collected as described in subsection (a) shall be distributed 
as follows:
            ``(1) an amount equal to the amount that will be 
        disregarded pursuant to section 402(a)(8)(A)(vi) shall be taken 
        from each of the--
                    ``(A) amounts received in a month which represent 
                payments for that month; and
                    ``(B) amounts received in a month which represent 
                payments for a prior month which were made by the 
                absent parent;
        and shall be paid to the family without affecting its 
        eligibility for assistance or decreasing any amount otherwise 
        payable as assistance to such family during such month;
            ``(2) second, from any remainder, amounts equal to the 
        balance of support owed for the current month shall be paid to 
        the family;
            ``(3) third, from any remainder, amounts equal to 
        arrearages of such support obligations assigned, pursuant to 
        part A, to the State making the collection shall be retained 
        and used by such State to pay any such arrearages (with 
        appropriate reimbursement of the Federal Government to the 
        extent of its participation in the financing); and
            ``(4) fourth, from any remainder, amounts equal to 
        arrearages of such support obligations assigned, pursuant to 
        part A, to any other State or States shall be paid to such 
        other State or States and used to pay any such arrearages (with 
        appropriate reimbursement of the Federal Government to the 
        extent of its participation in the financing); and
            ``(5) fifth, any remainder shall be paid to the family.''.
    (c) Distribution to a Family Not Receiving AFDC.--
            (1) In general.--Section 457(c) (42 U.S.C. 657(c)) is 
        amended to read as follows:
    ``(c) Distribution in Case of Family Not Receiving AFDC.--Amounts 
collected by a State agency under this part during any month as support 
of a child who is not receiving assistance under part A (or of a parent 
or caretaker relative of such a child) shall (subject to the remaining 
provisions of this section) be distributed as follows:
            ``(1) first, amounts equal to the total of such support 
        owed for such month shall be paid to the family;
            ``(2) second, from any remainder, amounts equal to 
        arrearages of such support obligations for months during which 
        such child did not receive assistance under part A shall be 
        paid to the family;
            ``(3) third, from any remainder, amounts equal to 
        arrearages of such support obligations assigned to the State 
        making the collection pursuant to part A shall be retained and 
        used by such State to pay any such arrearages (with appropriate 
        reimbursement of the Federal Government to the extent of its 
        participation in the financing); and
            ``(4) fourth, from any remainder, amounts equal to 
        arrearages of such support obligations assigned to any other 
        State pursuant to part A shall be paid to such other State or 
        States, and used to pay such arrearages, in the order in which 
        such arrearages accrued (with appropriate reimbursement of the 
        Federal Government to the extent of its participation in the 
        financing).''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall become effective on October 1, 1999.
    (d) Distribution to a Child Receiving Assistance Under Title IV-
E.--Section 457(d) (42 U.S.C. 657(d)) is amended, in the matter 
preceding paragraph (1), by striking ``Notwithstanding the preceding 
provisions of this section, amounts'' and inserting the following:
    ``(d) In Case of a Child Receiving Assistance Under Title IV-E.--
Amounts''.
    (e) Regulations.--The Secretary of Health and Human Services shall 
promulgate regulations--
            (1) under part D of title IV of the Social Security Act, 
        establishing a uniform nationwide standard for allocation of 
        child support collections from an obligor owing support to more 
        than 1 family; and
            (2) under part A of such title, establishing standards 
        applicable to States electing the alternative formula under 
        section 457(b) of such Act for distribution of collections on 
        behalf of families receiving Aid to Families with Dependent 
        Children, designed to minimize irregular monthly payments to 
        such families.
    (f) Clerical Amendments.--Section 454 (42 U.S.C. 654) is amended--
            (1) in paragraph (11)--
                    (A) by striking ``(11)'' and inserting ``(11)(A)''; 
                and
                    (B) by inserting after the semicolon ``and''; and
            (2) by redesignating paragraph (12) as subparagraph (B) of 
        paragraph (11).
    (g) Mandatory Child Support Pass-Through.--
            (1) In general.--Section 402(a)(8)(A)(vi) (42 U.S.C. 
        602(a)(8)(A)(vi)) is amended--
                    (A) by striking ``$50'' each place it appears and 
                inserting ``$50, or, if greater, $50 adjusted by the 
                CPI (as prescribed in section 406(i));''; and
                    (B) by striking the semicolon at the end and 
                inserting ``or, in lieu of each dollar amount specified 
                in this clause, such greater amount as the State may 
                choose (and provide for in its State plan);''.
            (2) CPI adjustment.--Section 406 (42 U.S.C. 606) is amended 
        by adding at the end the following new subsection:
    ``(i) For purposes of this part, an amount is `adjusted by the CPI' 
for any month in a calendar year by multiplying the amount involved by 
the ratio of--
            ``(1) the Consumer Price Index (as prepared by the 
        Department of Labor) for the third quarter of the preceding 
        calendar year, to
            ``(2) such Consumer Price Index for the third quarter of 
        calendar year 1996,
and rounding the product, if not a multiple of $10, to the nearest 
multiple of $10.''.

SEC. 103. DUE PROCESS RIGHTS.

    (a) In General.--Section 454 (42 U.S.C. 654), as amended by section 
102(f), is amended by inserting after paragraph (11) the following new 
paragraph:
            ``(12) provide for procedures to ensure that--
                    ``(A) individuals who are applying for or receiving 
                services under this part, or are parties to cases in 
                which services are being provided under this part--
                            ``(i) receive notice of all proceedings in 
                        which support obligations might be established 
                        or modified; and
                            ``(ii) receive a copy of any order 
                        establishing or modifying a child support 
                        obligation, or (in the case of a petition for 
                        modification) a notice of determination that 
                        there should be no change in the amount of the 
                        child support award, within 14 days after 
                        issuance of such order or determination;
                    ``(B) individuals applying for or receiving 
                services under this part have access to a fair hearing 
                that meets standards established by the Secretary and 
                ensures prompt consideration and resolution of 
                complaints (but the resort to such procedure shall not 
                stay the enforcement of any support order); and
                    ``(C)(i) individuals adversely affected by the 
                establishment or modification of (or, in the case of a 
                petition for modification, the determination that there 
                should be no change in) a child support order shall be 
                afforded not less than 30 days after the receipt of the 
                order or determination to initiate proceedings to 
                challenge such order or determination; and
                    ``(ii) the State may not provide to any 
                noncustodial parent of a child representation relating 
                to the establishment or modification of an order for 
                the payment of child support with respect to that 
                child, unless the State makes provision for such 
                representation outside the State agency;''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
become effective on October 1, 1997.

SEC. 104. 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) provide that the State will have in effect 
        safeguards applicable to all sensitive and confidential 
        information handled by the State agency 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 on the release of information on 
                the whereabouts of 1 party to another party against 
                whom a protective order with respect to the former 
                party has been entered; and
                    ``(C) prohibitions on the release of information on 
                the whereabouts of 1 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--Program Administration and Funding

SEC. 111. 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 applicable percent for a quarter for purposes of 
paragraph (1)(A) is--
            ``(A) for fiscal year 1997, 69 percent;
            ``(B) for fiscal year 1998, 72 percent; and
            ``(C) for fiscal year 1999 and succeeding fiscal years, 75 
        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 new 
        subsection:
    ``(c) Notwithstanding the provisions of subsection (a), total 
expenditures for the State program under this part for fiscal year 1997 
and each succeeding fiscal year, reduced by the percentage specified 
for such fiscal year under subsection (a)(2), shall not be less than 
such total expenditures for fiscal year 1996, reduced by 66 percent.''.

SEC. 112. 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:

                ``incentive adjustments to matching rate

    ``Sec. 458. (a) Incentive Adjustment.--
            ``(1) In general.--In order to encourage and reward State 
        child support enforcement programs which perform in an 
        effective manner, the Federal matching rate for payments to a 
        State under section 455(a)(1)(A), for each fiscal year 
        beginning on or after October 1, 1996, shall be increased by a 
        factor reflecting the sum of the applicable incentive 
        adjustments (if any) determined in accordance with regulations 
        under this section with respect to Statewide paternity 
        establishment and to overall performance in child support 
        enforcement.
            ``(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 States must attain to qualify for 
                        incentive adjustments under this section; and
                            ``(ii) the amounts of incentive adjustment 
                        that shall be awarded to States achieving 
                        specified accomplishment or improvement levels, 
                        which amounts shall be graduated, ranging up 
                        to--
                                    ``(I) 5 percentage points, in 
                                connection with Statewide paternity 
                                establishment; and
                                    ``(II) 10 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 1995, 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 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) Fiscal year subject to incentive adjustment.--The 
        total percentage point increase determined pursuant to this 
        section with respect to a State program in a fiscal year shall 
        apply as an adjustment to the applicable percent under section 
        455(a)(2) for payments to such State for the succeeding fiscal 
        year.
            ``(5) Recycling of incentive adjustment.--A State shall 
        expend in the State program under this part all funds paid to 
        the State by the Federal Government as a result of an incentive 
        adjustment under this section.
    ``(b) Meaning of Terms.--For purposes of this section--
            ``(1) the term `Statewide paternity establishment 
        percentage' means, with respect to a fiscal year, the ratio 
        (expressed as a percentage) of--
                    ``(A) the total number of out-of-wedlock children 
                in the State under 1 year of age for whom paternity is 
                established or acknowledged during the fiscal year, to
                    ``(B) the total number of children born out of 
                wedlock in the State during such fiscal year; and
            ``(2) 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 child 
                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.''.
    (b) Adjustment of Payments Under Part D of Title IV.--Section 
455(a)(2) (42 U.S.C. 655(a)(2)), as amended by section 111(a), is 
amended--
            (1) by striking the period at the end of subparagraph (C) 
        and inserting a comma; and
            (2) by adding after subparagraph (C), flush with the left 
        margin of the paragraph, the following:
``increased by the incentive adjustment factor (if any) determined by 
the Secretary pursuant to section 458.''.
    (c) Conforming Amendments.--Section 454(22) (42 U.S.C. 654(22)) is 
amended--
            (1) by striking ``incentive payments'' the first place it 
        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''.
    (d) Calculation of IV-D Paternity Establishment Percentage.--
            (1) Overall performance.--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 determined under regulations promulgated by the 
Secretary), and'' after ``1994,''.
            (2) Definition.--Section 452(g)(2) (42 U.S.C. 652(g)(2)) is 
        amended in subparagraph (A), in the matter preceding clause 
        (i)--
                            (i) by striking ``paternity establishment 
                        percentage'' and inserting ``IV-D paternity 
                        establishment percentage''; and
                            (ii) by striking ``(or all States, as the 
                        case may be)''.
            (3) Modification of requirements.--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 redesignated, by 
                striking ``the percentage of children born out-of-
                wedlock in the State'' and inserting ``the percentage 
                of children in the State who are born out of wedlock or 
                for whom support has not been established''; and
                    (C) in subparagraph (B), as 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.
            (4) Overall performance in child support enforcement.--
        Section 452(g) (42 U.S.C. 652(g)) is amended by adding at the 
        end the following new paragraph:
    ``(4) For purposes of this subsection, the term `overall 
performance in child support enforcement' shall have the same meaning 
given such term by section 458(b).''.
    (e) Reduction of Payments Under Part D of Title IV.--
            (1) New requirements.--Section 455 (42 U.S.C. 655) is 
        amended--
                    (A) by redesignating subsection (e) as subsection 
                (f); and
                    (B) by inserting after subsection (d) the following 
                new subsection:
    ``(e)(1) Notwithstanding any other provision of law, if the 
Secretary finds, with respect to a State program under this part in a 
fiscal year beginning on or after October 1, 1997--
            ``(A)(i) on the basis of data submitted by a State pursuant 
        to section 454(15)(B), that the State program in such fiscal 
        year failed to achieve the IV-D paternity establishment 
        percentage (as defined in section 452(g)(2)(A)) or the 
        appropriate level of overall performance in child support 
        enforcement (as defined in section 458(b)(2)), or to meet other 
        performance measures that may be established by the Secretary; 
        or
            ``(ii) on the basis of an audit or audits of such State 
        data conducted pursuant to section 452(a)(4)(C), that the State 
        data submitted pursuant to section 454(15)(B) is incomplete or 
        unreliable; and
            ``(B) that, with respect to the succeeding fiscal year--
                    ``(i) the State failed to take sufficient 
                corrective action to achieve the appropriate 
                performance levels as described in subparagraph (A)(i) 
                of this paragraph; or
                    ``(ii) the data submitted by the State pursuant to 
                section 454(15)(B) is incomplete or unreliable,
the amounts otherwise payable to the State under this part for quarters 
following the end of such succeeding fiscal year, prior to quarters 
following the end of the first quarter throughout which the State 
program is in compliance with such performance requirement, shall be 
reduced by the percentage specified in paragraph (2).
    ``(2) The reductions required under paragraph (1) shall be--
            ``(A) not less than 6 nor more than 8 percent; or
            ``(B) not less than 8 nor more than 12 percent, if the 
        finding is the second consecutive finding made pursuant to 
        paragraph (1); or
            ``(C) not less than 12 nor more than 15 percent, if the 
        finding is the third or a subsequent consecutive such finding.
    ``(3) For purposes of this subsection, section 402(a)(27), and 
section 452(a)(4), a State which is determined as a result of an audit 
to have submitted incomplete or unreliable data pursuant to section 
454(15)(B), shall be determined to have submitted adequate data if the 
Secretary determines that the extent of the incompleteness or 
unreliability of the data is of a technical nature which does not 
adversely affect the determination of the level of the State's 
performance.''.
            (2) Conforming amendments.--
                    (A) Payments to states.--Section 403 (42 U.S.C. 
                603) is amended by striking subsection (h).
                    (B) Duties of the secretary.--Subsections 
                (d)(3)(A), (g)(1), and (g)(3)(A) of section 452 (42 
                U.S.C. 652) are each amended by striking ``403(h)'' and 
                inserting ``455(e)''.
    (f) Effective Dates.--
            (1) Incentive adjustments.--The amendments made by 
        subsections (a), (b), and (c) shall become effective on October 
        1, 1996.
            (2) Penalty reductions.--
                    (A) In general.--The amendments made by subsection 
                (d) shall become effective with respect to calendar 
                quarters beginning on and after the date of the 
                enactment of this Act.
                    (B) Reductions.--The amendments made by subsection 
                (e) shall become effective with respect to calendar 
                quarters beginning on and after the date 1 year after 
                the date of the enactment of this Act.

SEC. 113. FEDERAL AND STATE REVIEWS AND AUDITS.

    (a) State Agency Activities.--Section 454 (42 U.S.C. 654) is 
amended--
            (1) in paragraph (14)--
                    (A) by striking ``(14)'' and inserting ``(14)(A)''; 
                and
                    (B) by inserting after the semicolon ``and'';
            (2) by redesignating paragraph (15) as subparagraph (B) of 
        paragraph (14); and
            (3) by inserting after paragraph (14) the following new 
        paragraph:
            ``(15) provide for--
                    ``(A) a process for annual reviews of and reports 
                to the Secretary on the State program under this part--
                            ``(i) 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; and
                            ``(ii) under which the State agency will 
                        determine the extent to which such program is 
                        in conformity with applicable requirements with 
                        respect to the operation of State programs 
                        under this part (including the status of 
                        complaints filed under the procedure required 
                        under paragraph (12)(B)); and
                    ``(B) a process of extracting from the State 
                automated data processing system 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 section 452(g) and 458, and determine the amount 
        (if any) of penalty reductions pursuant to section 455(e) to be 
        applied to the State;
            ``(B) review annual reports by State agencies pursuant to 
        section 454(15)(A) on State program conformity with Federal 
        requirements, evaluate any elements of a State program in which 
        significant deficiencies are indicated by such report on the 
        status of complaints under the State procedure under section 
        454(12)(B), and, as appropriate, provide to the State agency 
        comments, recommendations for additional or alternative 
        corrective actions, and technical assistance; and
            ``(C) conduct audits, in accordance with the government 
        auditing standards of the United States Comptroller General--
                    ``(i) at least once every 3 years (or more 
                frequently, in the case of a State which fails to meet 
                requirements of this part, or of regulations 
                implementing such requirements, 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 
                for the calculations of performance indicators 
                specified in subsection (g) and section 458;
                    ``(ii) of the adequacy of financial management of 
                the State program, including assessments of--
                            ``(I) whether Federal and other funds made 
                        available to carry out the State program under 
                        this part are being appropriately expended, and 
                        are properly and fully accounted for; and
                            ``(II) whether collections and 
                        disbursements of support payments and program 
                        income are carried out correctly and are 
                        properly and 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 on or after the 
date which is 1 year after the date of the enactment of this section.

SEC. 114. 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 section 104(a), 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 new 
        paragraph:
            ``(26) 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. 115. AUTOMATED DATA PROCESSING REQUIREMENTS.

    (a) Revised Requirements.--
            (1) State plan.--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, but not limited to,'' 
                and all that follows through the semicolon and 
                inserting a semicolon.
            (2) Automated data processing.--Part D of title IV (42 
        U.S.C. 651-669) is amended by inserting after section 454 the 
        following new section:

                      ``automated data processing

    ``Sec. 454A. (a) In General.--In order to meet the requirements of 
this section, for purposes of the requirement of section 454(16), a 
State agency 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, and performs such tasks 
with the frequency and in the manner specified in this part or in 
regulations or guidelines of the Secretary.
    ``(b) Program Management.--The automated system required under this 
section shall perform such functions as the Secretary may specify 
relating to management of the program under this part, including--
            ``(1) controlling and accounting for use of Federal, State, 
        and local funds to carry out such program; and
            ``(2) maintaining the data necessary to meet Federal 
        reporting requirements 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 under 
this section, which shall include the following (in addition to such 
other safeguards as the Secretary specifies 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 program responsibilities;
                    ``(B) specify the data which may be used for 
                particular program purposes, and the personnel 
                permitted access to such data; and
                    ``(C) ensure that data obtained or disclosed for a 
                limited program purpose is not used or redisclosed for 
                another, impermissible purpose.
            ``(2) Systems controls.--Systems controls (such as 
        passwords or blocking of fields) to ensure strict adherence to 
        the policies specified under 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.--The State agency shall 
        have in effect procedures to ensure that all personnel 
        (including State and local agency staff and contractors) who 
        may have access to or be required to use sensitive or 
        confidential program data are fully informed of applicable 
        requirements and penalties, and are adequately trained in 
        security procedures.
            ``(5) Penalties.--The State agency shall have in effect 
        administrative penalties (up to and including dismissal from 
        employment) for unauthorized access to, or disclosure or use 
        of, confidential data.''.
            (3) Regulations.--Section 452 (42 U.S.C. 652) is amended by 
        adding at the end the following new subsection:
    ``(j) The Secretary shall prescribe final regulations for 
implementation of the requirements of section 454A not later than 2 
years after the date of the enactment of this subsection.''.
            (4) Implementation timetable.--Section 454(24) (42 U.S.C. 
        654(24)), as amended by sections 104(a)(2) and 114(b)(1), 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, meeting all requirements 
                of this part which were enacted on or before the date 
                of the enactment of the Family Support Act of 1988; and
                    ``(B) by October 1, 1999, meeting all requirements 
                of this part enacted on or before the date of the 
                enactment of the Child Support Responsibility Act of 
                1995 (but this provision shall not be construed to 
                alter earlier deadlines specified for elements of such 
                system), 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 
                452(j);''.
    (b) Special Federal Matching Rate for Development Costs of 
Automated Systems.--Section 455(a) (42 U.S.C. 655(a)) is amended--
            (1) in paragraph (1)(B)--
                    (A) by striking ``90 percent'' and inserting ``the 
                percent specified in paragraph (3)'';
                    (B) by striking ``so much of''; and
                    (C) by striking ``which the Secretary'' and all 
                that follows through ``thereof''; and
            (2) by adding at the end the following new paragraph:
    ``(3)(A) The Secretary shall pay to each State, for each quarter in 
fiscal year 1996, 90 percent of so much of State expenditures described 
in paragraph (1)(B) as the Secretary finds are for a system meeting the 
requirements specified in section 454(16), or meeting such requirements 
without regard to subparagraph (D) thereof.
    ``(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 State expenditures described in paragraph (1)(B) as the 
Secretary finds are for a system meeting the requirements specified in 
section 454(16) and 454A, subject to clause (iii).
    ``(ii) The percentage specified in this clause, for purposes of 
clause (i), is the higher 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).''.
    (c) Conforming Amendment.--Section 123(c) of the Family Support Act 
of 1988 (102 Stat. 2352; Public Law 100-485) is repealed.

SEC. 116. DIRECTOR OF CSE PROGRAM; STAFFING STUDY.

    (a) Reporting to Secretary.--Section 452(a) (42 U.S.C. 652(a)) is 
amended in the matter preceding paragraph (1) by striking ``directly''.
    (b) Staffing Studies.--
            (1) Scope.--The Secretary of Health and Human Services (in 
        this subsection referred to as the ``Secretary'') shall, 
        directly or by contract, conduct studies of the staffing of 
        each State child support enforcement program under part D of 
        title IV of the Social Security Act. Such studies shall--
                    (A) include a review of the staffing needs created 
                by requirements for automated data processing, 
                maintenance of a central case registry, and centralized 
                collections of child support, and of changes in these 
                needs resulting from changes in such requirements; and
                    (B) examine and report on effective staffing 
                practices used by the States and on recommended 
                staffing procedures.
            (2) Frequency of studies.--The Secretary shall complete the 
        first staffing study required under paragraph (1) not later 
        than October 1, 1997, and may conduct additional studies 
        subsequently at appropriate intervals.
            (3) Report to congress.--The Secretary shall submit a 
        report to the Congress stating the findings and conclusions of 
        each study conducted under this subsection.

SEC. 117. FUNDING FOR SECRETARIAL ASSISTANCE TO STATE PROGRAMS.

    Section 452 (42 U.S.C. 652), as amended by section 115(a)(3), is 
amended by adding at the end the following new subsection:
    ``(k)(1) There shall be available to the Secretary, from amounts 
appropriated for fiscal year 1996 and each succeeding fiscal year for 
payments to States under this part, the amount specified in paragraph 
(2) for the costs to the Secretary for--
            ``(A) information dissemination and technical assistance to 
        States, training of State and Federal staff, staffing studies, 
        and related activities needed to improve programs (including 
        technical assistance concerning State automated systems);
            ``(B) research, demonstration, and special projects of 
        regional or national significance relating to the operation of 
        State programs under this part; and
            ``(C) operation of the Federal Parent Locator Service under 
        section 453, to the extent such costs are not recovered through 
        user fees.
    ``(2) The amount specified in this paragraph for a fiscal year is 
the amount equal to a percentage of the reduction in Federal payments 
to States under part A on account of child support (including 
arrearages) collected in the preceding fiscal year on behalf of 
children receiving aid under such part A in such preceding fiscal year 
(as determined on the basis of the most recent reliable data available 
to the Secretary as of the end of the third calendar quarter following 
the end of such preceding fiscal year), equal to--
            ``(A) 1 percent, for the activities specified in 
        subparagraphs (A) and (B) of paragraph (1); and
            ``(B) 2 percent, for the activities specified in 
        subparagraph (C) of paragraph (1).''.

SEC. 118. DATA COLLECTION AND REPORTS BY THE SECRETARY.

    (a) Annual Report to Congress.--
            (1) In general.--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 indented 
                clauses:
                            ``(i) the total amount of child support 
                        payments collected as a result of services 
                        furnished during such fiscal year to 
                        individuals receiving services under this part;
                            ``(ii) the cost to the States and to the 
                        Federal Government of furnishing such services 
                        to those individuals; and
                            ``(iii) the number of cases involving 
                        families--
                                    ``(I) who became ineligible for aid 
                                under part A during a month in such 
                                fiscal year; and
                                    ``(II) with respect to whom a child 
                                support payment was received in the 
                                same month;''.
            (2) Certain data.--Section 452(a)(10)(C) (42 U.S.C. 
        652(a)(10)(C)) is amended--
                    (A) in the matter preceding clause (i), by striking 
                ``with the data required under each clause being 
                separately stated for cases'' and all that follows 
                through ``part:'' and inserting ``separately stated for 
                cases where the child is receiving aid to families with 
                dependent children (or foster care maintenance payments 
                under part E), or formerly received such aid or 
                payments and the State is continuing to collect support 
                assigned to it under section 402(a)(26), 471(a)(17), or 
                1912, and all other cases under this part--'';
                    (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 through the semicolon 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 new 
                clauses:
                            ``(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) Use of federal courts.--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) Additional information not necessary.--Section 
        452(a)(10) (42 U.S.C. 652(a)(10)) is amended by striking the 
        matter following subparagraph (I).
    (b) Data Collection and Reporting.--Section 469 (42 U.S.C. 669) is 
amended--
            (1) by striking subsections (a) and (b) and inserting the 
        following:
    ``(a) The Secretary shall collect and maintain for each State for 
each fiscal year the data specified in subsection (b) with respect to 
services to establish paternity and services to establish child support 
obligations. The data with respect to each such service shall be up-to-
date and shall be separately stated for families (or dependent 
children) receiving aid under plans approved under part A or E and for 
other families (or dependent children).
    ``(b) The data referred to in subsection (a) are--
            ``(1) the number of cases in the caseload of the State 
        agency administering the plan under this part in which each 
        service described in subsection (a) is needed; and
            ``(2) the number of such cases in which the service has 
        been provided.''; and
            (2) in subsection (c), by striking ``(a)(2)'' and inserting 
        ``(b)(2)''.
    (c) Effective Date.--The amendments made by this section shall be 
effective with respect to fiscal year 1996 and succeeding fiscal years.

                  Subtitle C--Locate and Case Tracking

SEC. 121. CENTRAL STATE AND CASE REGISTRY.

    Section 454A, as added by section 115(a)(2), is amended by adding 
at the end the following new subsections:
    ``(e) Central Case Registry.--
            ``(1) In general.--The automated system required under this 
        section shall perform the functions, in accordance with the 
        provisions of this subsection, of a single central registry 
        containing records with respect to each case in which services 
        are being provided by the State agency (including, on and after 
        October 1, 1998, each order specified in section 466(a)(12)), 
        using such standardized data elements (such as names, Social 
        Security numbers or other uniform identification numbers, dates 
        of birth, and case identification numbers), and containing such 
        other information (such as information on case status) as the 
        Secretary may require.
            ``(2) Payment records.--Each case record in the central 
        registry shall include a record of--
                    ``(A) the amount of monthly (or other periodic) 
                support owed under the support order, and other amounts 
                due or overdue (including arrears, interest or late 
                payment penalties, and fees);
                    ``(B) the date on which or circumstances under 
                which the support obligation will terminate under such 
                order;
                    ``(C) all child support and related amounts 
                collected (including such amounts as fees, late payment 
                penalties, and interest on arrearages);
                    ``(D) the distribution of such amounts collected; 
                and
                    ``(E) the birth date of the child for whom the 
                child support order is entered.
            ``(3) Updating and monitoring.--The State agency shall 
        promptly establish and maintain, and regularly monitor, case 
        records in the registry required by this subsection, 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 matches with 
                Federal, State, or local data sources;
                    ``(C) information on support collections and 
                distributions; and
                    ``(D) any other relevant information.
    ``(f) Data Matches and Other Disclosures of Information.--In order 
to obtain (or provide) information necessary to enable the State agency 
(or other State or Federal agencies) to carry out responsibilities 
under this part, the automated system required under this section shall 
have the capacity, and be used by the State agency to extract data at 
such times, and in such standardized format or formats, as may be 
required by the Secretary, and to share and match data with, and 
receive data from, other data bases and data matching services. Data 
matching activities of the State agency shall include at least the 
following:
            ``(1) Data bank of child support orders.--Furnishing to the 
        Data Bank of Child Support Orders established under section 
        453(h) minimal information (as specified by the Secretary) on 
        each child support case in the central case registry, and 
        updating such information as necessary (including notice of 
        expiration of orders).
            ``(2) Federal parent locator service.--Exchanging data with 
        the Federal Parent Locator Service for the purposes specified 
        in section 453.
            ``(3) AFDC and medicaid agencies.--Exchanging data with 
        State agencies (of the State and of other States) administering 
        the programs under part A and title XIX, as necessary for the 
        performance of State agency responsibilities under this part 
        and under such programs.
            ``(4) Intra- and interstate data matches.--Exchanging data 
        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. 122. CENTRALIZED COLLECTION AND DISBURSEMENT OF SUPPORT PAYMENTS.

    (a) State Plan Requirement.--Section 454 (42 U.S.C. 654), as 
amended by sections 104(a) and 114(b), 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 adding after paragraph (26) the following new 
        paragraph:
            ``(27) provide that the State agency, on and after October 
        1, 1998--
                    ``(A) will operate a centralized, automated unit 
                for the collection and disbursement of child support 
                under orders being enforced under this part, in 
                accordance with section 454B; and
                    ``(B) will have sufficient State staff (consisting 
                of State employees, and, at State option, contractors 
                reporting directly to the State agency) to monitor and 
                enforce support collections through such centralized 
                unit, including carrying out the automated data 
                processing responsibilities specified in section 
                454A(g) and to impose, as appropriate in particular 
                cases, the administrative enforcement remedies 
                specified in section 466(c)(1).''.
    (b) Establishment of Centralized Collection Unit.--Part D of title 
IV (42 U.S.C. 651-669) is amended by adding after section 454A the 
following new section:

     ``centralized collection and disbursement of support payments

    ``Sec. 454B. (a) In General.--In order to meet the requirement of 
section 454(27), the State agency must operate a single, centralized, 
automated unit for the collection and disbursement of support payments, 
coordinated with the automated data system required under section 454A, 
in accordance with the provisions of this section, which shall be--
            ``(1) operated directly by the State agency (or by 2 or 
        more State agencies under a regional cooperative agreement), or 
        by a single contractor responsible directly to the State 
        agency; and
            ``(2) used for the collection and disbursement (including 
        interstate collection and disbursement) of payments under 
        support orders in all cases being enforced by the State 
        pursuant to section 454(4).
    ``(b) Required Procedures.--The centralized collections 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 State 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 either parent, upon request, timely 
        information on the current status of support payments.''.
    (c) Use of Automated System.--Section 454A, as added by section 
115(a)(2) and as amended by section 121, is amended by adding at the 
end the following new subsection:
    ``(g) Centralized Collection and Distribution of Support 
Payments.--The automated system required under this section shall be 
used, to the maximum extent feasible, to assist and facilitate 
collections and disbursement of support payments through the 
centralized collections unit operated pursuant to section 454B, through 
the performance of functions including at a minimum--
            ``(1) generation of orders and notices to employers (and 
        other debtors) for the withholding of wages (and other 
        income)--
                    ``(A) within 2 working days after receipt (from the 
                directory of New Hires established under section 453(i) 
                or any other source) of notice of and the income source 
                subject to such withholding; and
                    ``(B) using uniform formats directed by the 
                Secretary;
            ``(2) ongoing monitoring to promptly identify failures to 
        make timely payment; and
            ``(3) automatic use of enforcement mechanisms (including 
        mechanisms authorized pursuant to section 466(c)) where 
        payments are not timely made.''.
    (d) Effective Date.--The amendments made by this section shall 
become effective on October 1, 1998.

SEC. 123. AMENDMENTS CONCERNING INCOME WITHHOLDING.

    (a) Mandatory Income Withholding.--
            (1) From wages.--Section 466(a)(1) (42 U.S.C. 666(a)(1)) is 
        amended to read as follows:
            ``(1)(A) 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) Procedures under which all child support orders 
        issued (or modified) before October 1, 1996, and which are not 
        otherwise subject to withholding under subsection (b), shall 
        become subject to withholding from wages as provided in 
        subsection (b) if arrearages occur, without the need for a 
        judicial or administrative hearing.''.
            (2) Repeal of certain provisions concerning arrearages.--
        Section 466(a)(8) (42 U.S.C. 666(a)(8)) is repealed.
            (3) Procedures described.--Section 466(b) (42 U.S.C. 
        666(b)) is amended--
                    (A) in the matter preceding paragraph (1), by 
                striking ``subsection (a)(1)'' and inserting 
                ``subsection (a)(1)(A)'';
                    (B) in paragraph (5), by striking ``a public 
                agency'' and all that follows through the period and 
                inserting ``the State through the centralized 
                collections unit established pursuant to section 454B, 
                in accordance with the requirements of such section 
                454B.'';
                    (C) in paragraph (6)(A)(i)--
                            (i) by inserting ``, in accordance with 
                        timetables established by the Secretary,'' 
                        after ``must be required''; and
                            (ii) by striking ``to the appropriate 
                        agency'' and all that follows through the 
                        period and inserting ``to the State centralized 
                        collections unit within 5 working days after 
                        the date such amount would (but for this 
                        subsection) have been paid or credited to the 
                        employee, for distribution in accordance with 
                        this part.'';
                    (D) in paragraph (6)(A)(ii), by inserting ``be in a 
                standard format prescribed by the Secretary, and'' 
                after ``shall''; and
                    (E) in paragraph (6)(D) to read as follows:
            ``(D) Provision must be made for the imposition of a fine 
        against 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 it 
                imposes upon the employer; or
                    ``(ii) fails to withhold support from wages, or to 
                pay such amounts to the State centralized collections 
                unit in accordance with this subsection.''.
    (b) Conforming Amendment.--Section 466(c) (42 U.S.C. 666(c)) is 
repealed.
    (c) Definition of Terms.--The Secretary of Health and Human 
Services shall promulgate regulations providing definitions, for 
purposes of part D of title IV of the Social Security Act, for the term 
``income'' and for such other terms relating to income withholding 
under section 466(b) of such Act as the Secretary may find it necessary 
or advisable to define.

SEC. 124. LOCATOR INFORMATION FROM INTERSTATE NETWORKS.

    Section 466(a) (42 U.S.C. 666(a)), as amended by section 123(a)(2), 
is amended by inserting after paragraph (7) the following new 
paragraph:
            ``(8) Procedures ensuring that the State will neither 
        provide funding for, nor use for any purpose (including any 
        purpose unrelated to the purposes of this part), any automated 
        interstate network or system used to locate individuals--
                    ``(A) for purposes relating to the use of motor 
                vehicles; or
                    ``(B) providing information for law enforcement 
                purposes (where child support enforcement agencies are 
                otherwise allowed access by State and Federal law),
        unless all Federal and State agencies administering programs 
        under this part (including the entities established under 
        section 453) have access to information in such system or 
        network to the same extent as any other user of such system or 
        network.''.

SEC. 125. 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 ``information as to the 
        whereabouts'' and all that follows through the period and 
        inserting ``, for the purpose of establishing parentage, or 
        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 
                such individual's Social Security number (or numbers), 
                most recent residential address, and the name, address, 
                and employer identification number of such individual's 
                employer;
            ``(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
            ``(3) information on the type, status, location, and amount 
        of any assets of, or debts owed by or to, any such 
        individual.'';
            (2) in subsection (b)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``social security'' and all that follows 
                through ``absent parent'' and inserting ``information 
                specified in subsection (a)''; and
                    (B) in paragraph (2), by inserting before the 
                period ``, or from any consumer reporting agency (as 
                defined in section 603(f) of the Fair Credit Reporting 
                Act (15 U.S.C. 1681a(f))''; and
            (3) in subsection (e)(1), by inserting before the period 
        ``, or by consumer reporting agencies''.
    (b) Reimbursement for Data From Federal Agencies.--Section 
453(e)(2) (42 U.S.C. 653(e)(2)) is amended in the fourth sentence by 
inserting before the period ``in an amount which the Secretary 
determines to be reasonable payment for the data exchange (which amount 
shall not include payment for the costs of obtaining, compiling, or 
maintaining the data)''.
    (c) Access to Consumer Reports Under Fair Credit Reporting Act.--
            (1) In general.--Section 608 of the Fair Credit Reporting 
        Act (15 U.S.C. 1681f) is amended--
                    (A) by striking ``, limited to'' and inserting ``to 
                a governmental agency (including the entire consumer 
                report, in the case of a Federal, State, or local 
                agency administering a program under part D of title IV 
                of the Social Security Act, and limited to''; and
                    (B) by striking ``employment, to a governmental 
                agency'' and inserting ``employment, in the case of any 
                other governmental agency)''.
            (2) Reimbursement for reports by state agencies and credit 
        bureaus.--Section 453 (42 U.S.C. 653) is amended by adding at 
        the end the following new subsection:
    ``(g) The Secretary is authorized to reimburse to State agencies 
and consumer credit reporting agencies the costs incurred by such 
entities in furnishing information requested by the Secretary pursuant 
to this section in an amount which the Secretary determines to be 
reasonable payment for the data exchange (which amount shall not 
include payment for the costs of obtaining, compiling, or maintaining 
the data).''.
    (d) Disclosure of Tax Return Information.--
            (1) By the secretary of the treasury.--Section 
        6103(l)(6)(A)(ii) of the Internal Revenue Code of 1986 
        (relating to disclosure of return information to Federal, 
        State, and local child support enforcement agencies) is amended 
        by striking ``, but only if'' and all that follows through the 
        period and inserting a period.
            (2) By the social security administration.--Section 
        6103(l)(8)(A) 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 striking ``State or local'' and 
        inserting ``Federal, State, or local''.
    (e) References to Parent Locator Service.--
            (1) In general.--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 it appears.
            (2) In heading of section 453.--Section 453 (42 U.S.C. 653) 
        is amended in the heading by inserting ``federal'' before 
        ``parent''.
    (f) New Components.--Section 453 (42 U.S.C. 653), as amended by 
subsection (c)(2), is amended by adding at the end the following new 
subsections:
    ``(h) Data Bank of Child Support Orders.--
            ``(1) In general.--Not later than October 1, 1998, in order 
        to assist States in administering their State plans under this 
        part and parts A, F, and G, and for the other purposes 
        specified in this section, the Secretary shall establish and 
        maintain in the Federal Parent Locator Service an automated 
        registry to be known as the Data Bank of Child Support Orders, 
        which shall contain abstracts of child support orders and other 
        information described in paragraph (2) on each case in each 
        State central 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), as specified by the Secretary, shall include 
        sufficient information (including 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 established or modified, or are enforcing or seeking 
to establish, such an order.
    ``(i) Directory of New Hires.--
            ``(1) In general.--Not later than October 1, 1998, in order 
        to assist States in administering their State plans under this 
        part and parts A, F, and G, and for the other purposes 
        specified in this section, the Secretary shall establish and 
        maintain in the Federal Parent Locator Service an automated 
        directory to be known as the directory of New Hires, 
        containing--
                    ``(A) information supplied by employers on each 
                newly hired individual, in accordance with paragraph 
                (2); and
                    ``(B) information supplied by State agencies 
                administering State unemployment compensation laws, in 
                accordance with paragraph (3).
            ``(2) Employer information.--
                    ``(A) Information required.--Subject to 
                subparagraph (D), each employer shall furnish to the 
                Secretary, for inclusion in the directory under this 
                subsection, not later than 10 days after the date (on 
                or after October 1, 1998) on which the employer hires a 
                new employee (as defined in subparagraph (C)), a report 
                containing the name, date of birth, and social security 
                number of such employee, and the employer 
                identification number of the employer.
                    ``(B) Reporting method and format.--The Secretary 
                shall provide for transmission of the reports required 
                under subparagraph (A) using formats and methods which 
                minimize the burden on employers, which shall include--
                            ``(i) automated or electronic transmission 
                        of such reports;
                            ``(ii) transmission by regular mail; and
                            ``(iii) transmission of a copy of the form 
                        required for purposes of compliance with 
                        section 3402 of the Internal Revenue Code of 
                        1986.
                    ``(C) Employee defined.--For purposes of this 
                paragraph, the term `employee' means any individual 
                subject to the requirement of section 3402(f)(2) of the 
                Internal Revenue Code of 1986.
                    ``(D) Paperwork reduction requirement.--As required 
                by the information resources management policies 
                published by the Director of the Office of Management 
                and Budget pursuant to section 3504(b)(1) of title 44, 
                United States Code, the Secretary, in order to minimize 
                the cost and reporting burden on employers, shall not 
                require reporting pursuant to this paragraph if an 
                alternative reporting mechanism can be developed that 
                either relies on existing Federal or State reporting or 
                enables the Secretary to collect the needed information 
                in a more cost-effective and equally expeditious 
                manner, taking into account the reporting costs on 
                employers.
                    ``(E) Civil money penalty on noncomplying 
                employers.--
                            ``(i) In general.--Any employer who fails 
                        to make a timely report in accordance with this 
                        paragraph with respect to an individual shall 
                        be subject to a civil money penalty, for each 
                        calendar year in which the failure occurs, of 
                        the lesser of $500 or 1 percent of the wages or 
                        other compensation paid by such employer to 
                        such individual during such calendar year.
                            ``(ii) Application of section 1128a.--
                        Subject to clause (iii), the provisions of 
                        section 1128A (other than subsections (a) and 
                        (b) thereof) shall apply to a civil money 
                        penalty under clause (i) in the same manner as 
                        they apply to a civil money penalty or 
                        proceeding under section 1128A(a).
                            ``(iii) Costs to secretary.--Any employer 
                        with respect to whom a penalty under this 
                        subparagraph is upheld after an administrative 
                        hearing shall be liable to pay all costs of the 
                        Secretary with respect to such hearing.
            ``(3) Employment security information.--
                    ``(A) Reporting requirement.--Each State agency 
                administering a State unemployment compensation law 
                approved by the Secretary of Labor under the Federal 
                Unemployment Tax Act shall furnish to the Secretary 
                extracts of the reports to the Secretary of Labor 
                concerning the wages and unemployment compensation paid 
                to individuals required under section 303(a)(6), in 
                accordance with subparagraph (B).
                    ``(B) Manner of compliance.--The extracts required 
                under subparagraph (A) shall be furnished to the 
                Secretary on a quarterly basis, with respect to 
                calendar quarters beginning on and after October 1, 
                1996, by such dates, in such format, and containing 
                such information as required by the Secretary in 
                regulations.
    ``(j) Data Matches and Other Disclosures.--
            ``(1) Verification by social security administration.--
                    ``(A) Transmission of data.--The Secretary shall 
                transmit data on individuals and employers in the 
                registries maintained under this section to the Social 
                Security Administration to the extent necessary for 
                verification in accordance with subparagraph (B).
                    ``(B) Verification.--The Commissioner of Social 
                Security shall verify the accuracy of, correct or 
                supply to the extent necessary and feasible, and report 
                to the Secretary, the following information on data 
                supplied by the Secretary pursuant to subparagraph (A):
                            ``(i) the name, social security number, and 
                        birth date of each individual; and
                            ``(ii) the employer identification number 
                        of each employer.
            ``(2) Child support locator matches.--For the purpose of 
        locating individuals for purposes of paternity establishment 
        and establishment and enforcement of child support, the 
        Secretary shall--
                    ``(A) match data in the directory of New Hires 
                against the child support order abstracts in the Data 
                Bank of Child Support Orders not less than every 2 
                working days; and
                    ``(B) report information obtained from a match 
                established under subparagraph (A) to concerned State 
                agencies operating programs under this part not later 
                than 2 working days after such match.
            ``(3) Data matches and disclosures of data in all 
        registries for title iv program purposes.--The Secretary 
        shall--
                    ``(A) perform matches of data in each component of 
                the Federal Parent Locator Service maintained under 
                this section against data in each other such component 
                (other than the matches required pursuant to paragraph 
                (1)), and report information resulting from such 
                matches to State agencies operating programs under this 
                part and parts A, F, and (G); and
                    ``(B) disclose data in such registries to such 
                State agencies,
        to the extent, and with the frequency, that the Secretary 
        determines to be effective in assisting such States to carry 
        out their responsibilities under such programs.
    ``(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 specified in subsection (j).
            ``(2) For information from sesas.--The Secretary shall 
        reimburse costs incurred by State employment security agencies 
        in furnishing data as required by subsection (i)(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 data).
            ``(3) For information furnished to state and federal 
        agencies.--State and Federal agencies receiving data or 
        information from the Secretary pursuant to this section shall 
        reimburse the costs incurred by the Secretary in furnishing 
        such data or information, at rates which the Secretary 
        determines to be reasonable (which rates shall include payment 
        for the costs of obtaining, verifying, maintaining, and 
        matching such data or information).
    ``(l) Restriction on Disclosure and Use.--Data in the Federal 
Parent Locator Service, and information resulting from matches using 
data, shall not be used or disclosed except as specifically provided in 
this section.
    ``(m) Retention of Data.--Data in the Federal Parent Locator 
Service, and data resulting from matches performed pursuant to this 
section, shall be retained for such period (determined by the 
Secretary) as appropriate for the data uses specified in this section.
    ``(n) 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.
    ``(o) Limit on Liability.--The Secretary shall not be liable to 
either a State or an individual for inaccurate information provided to 
a component of the Federal Parent Locator Service and disclosed by the 
Secretary in accordance with this section.''.
    (b) 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 (relating to approval of 
        State laws) is amended--
                    (A) by striking ``Secretary of Health, Education, 
                and Welfare'' each place it appears and inserting 
                ``Secretary of Health and Human Services'';
                    (B) in subparagraph (B), by striking ``such 
                information'' and all that follows through the 
                semicolon 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 
                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 at the end 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 under section 453(i)(3), and 
        compliance with such provisions as the Secretary may find 
        necessary to ensure the correctness and verification of such 
        reports.''.

SEC. 126. USE OF SOCIAL SECURITY NUMBERS.

    (a) State Law Requirement.--Section 466(a) (42 U.S.C. 666(a)), as 
amended by section 101(a), is amended by adding at the end the 
following new paragraph:
            ``(13) Procedures requiring the recording of social 
        security numbers--
                    ``(A) of both parties on marriage licenses and 
                divorce decrees; and
                    ``(B) of both parents, on birth records and child 
                support and paternity orders.''.
    (b) Clarification of Federal Policy.--Section 205(c)(2)(C)(ii) (42 
U.S.C. 405(c)(2)(C)(ii)) is amended by striking the third sentence and 
inserting ``This clause shall not be considered to authorize disclosure 
of such numbers except as provided in the preceding sentence.''.

         Subtitle D--Streamlining and Uniformity of Procedures

SEC. 131. ADOPTION OF UNIFORM STATE LAWS.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 101(a) 
and 126(a), is amended by adding at the end the following new 
paragraph:
            ``(14)(A) Procedures under which the State adopts in its 
        entirety (with the modifications and additions specified in 
        this paragraph) not later than January 1, 1997, and uses on and 
        after such date, the Uniform Interstate Family Support Act, as 
        approved by the National Conference of Commissioners on Uniform 
        State Laws in August 1992.
            ``(B) The State law adopted pursuant to subparagraph (A) 
        shall be applied to any case--
                    ``(i) involving an order established or modified in 
                one State and for which a subsequent modification is 
                sought in another State; or
                    ``(ii) in which interstate activity is required to 
                enforce an order.
            ``(C) The State law adopted pursuant to subparagraph (A) of 
        this paragraph shall contain the following provision in lieu of 
        section 611(a)(1) of the Uniform Interstate Family Support Act 
        described in such subparagraph (A):
                    ```(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'.
            ``(D) The State law adopted pursuant to subparagraph (A) 
        shall recognize as valid, for purposes of any proceeding 
        subject to such State law, service of process upon persons in 
        the State (and proof of such service) by any means acceptable 
        in another State which is the initiating or responding State in 
        such proceeding.
            ``(E) The State law adopted pursuant to subparagraph (A) 
        shall provide for the use of procedures (including sanctions 
        for noncompliance) under which all entities in the State 
        (including for-profit, nonprofit, and governmental employers) 
        are required to provide promptly, in response to a request by 
        the State agency of that or any other State administering a 
        program under this part, information on the employment, 
        compensation, and benefits of any individual employed by such 
        entity as an employee or contractor.''.

SEC. 132. 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 first 
        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 6 
        consecutive months immediately preceding the time of filing of 
        a petition or comparable pleading for support and, if a child 
        is less than 6 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 6-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 new 
        subsection:
    ``(f) Recognition of Child Support Orders.--If 1 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 1 court has issued a child support order, the 
        order of that court must be recognized.
            ``(2) If 2 or more courts have issued child support orders 
        for the same obligor and child, and only 1 of the courts would 
        have continuing, exclusive jurisdiction under this section, the 
        order of that court must be recognized.
            ``(3) If 2 or more courts have issued child support orders 
        for the same obligor and child, and only 1 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 2 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 new subsection:
    ``(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. 133. STATE LAWS PROVIDING EXPEDITED PROCEDURES.

    (a) State Law Requirements.--Section 466 (42 U.S.C. 666), as 
amended by section 123(b), is amended--
            (1) in subsection (a)(2), in the first sentence, to read as 
        follows: ``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 adding after subsection (b) the following new 
        subsection:
    ``(c) The procedures specified in this subsection are the 
following:
            ``(1) Procedures which give the State agency the authority 
        (and recognize and enforce the authority of State agencies of 
        other States), without the necessity of obtaining an order from 
        any other judicial or administrative tribunal to take the 
        following actions relating to establishment or enforcement of 
        orders:
                    ``(A) To order genetic testing for the purpose of 
                paternity establishment as provided in section 
                466(a)(5).
                    ``(B) 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 any putative father who refuses to submit to 
                        genetic testing; and
                            ``(ii) establishing a support obligation 
                        (or modifying a support obligation issued by 
                        the agency), 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) To subpoena any financial or other 
                information needed to establish, modify, or enforce an 
                order, and to sanction failure to respond to any such 
                subpoena.
                    ``(D) To provide access, subject to safeguards on 
                privacy and information security, to the following 
                records (including automated access, in the case of 
                records maintained in automated data bases):
                            ``(i) Records of the State and local 
                        government agencies, including--
                                    ``(I) vital statistics (including 
                                records of marriage, birth, and 
                                divorce);
                                    ``(II) state and local tax and 
                                revenue records (including information 
                                on residence address, employer, income 
                                and assets);
                                    ``(III) records concerning real and 
                                titled personal property;
                                    ``(IV) records of occupational and 
                                professional licenses, and records 
                                concerning the ownership and control of 
                                corporations, partnerships, and other 
                                business entities;
                                    ``(V) employment security records;
                                    ``(VI) records of agencies 
                                administering public assistance 
                                programs;
                                    ``(VII) records of the motor 
                                vehicle department; and
                                    ``(VIII) corrections records.
                            ``(ii) Certain records held by private 
                        entities, including--
                                    ``(I) customer records of public 
                                utilities and cable television 
                                companies; and
                                    ``(II) information (including 
                                information on assets and liabilities) 
                                on individuals who owe or are owed 
                                support (or against or with respect to 
                                whom a support obligation is sought) 
                                held by financial institutions (subject 
                                to limitations on liability of such 
                                entities arising from affording such 
                                access).
                    ``(E) To order income withholding in accordance 
                with subsection (a)(1) and (b) of section 466.
                    ``(F) In cases where support is subject to an 
                assignment under section 402(a)(26), 471(a)(17), or 
                1912, or to a requirement to pay through the 
                centralized collections unit under 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.
                    ``(G) For the purpose of securing overdue support--
                            ``(i) to intercept and seize any periodic 
                        or lump-sum payment to the obligor by or 
                        through a State or local government agency, 
                        including--
                                    ``(I) unemployment compensation, 
                                workers' compensation, and other 
                                benefits;
                                    ``(II) judgments and settlements in 
                                cases under the jurisdiction of the 
                                State or local government; and
                                    ``(III) lottery winnings;
                            ``(ii) to attach and seize assets of the 
                        obligor held by financial institutions;
                            ``(iii) to attach public and private 
                        retirement funds in appropriate cases, as 
                        determined by the Secretary; and
                            ``(iv) to impose liens in accordance with 
                        subsection (a)(4) and, in appropriate cases, to 
                        force sale of property and distribution of 
                        proceeds.
                    ``(H) 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 restrictions as the State may provide).
                    ``(I) To suspend drivers' licenses of individuals 
                owing past-due support, in accordance with subsection 
                (a)(16).
            ``(2) The procedures required under paragraph (1) shall be 
        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.
            ``(3) 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) Procedures under which--
                            ``(i) the parties to any paternity or child 
                        support proceedings are required (subject to 
                        privacy safeguards) to file with the tribunal 
                        before entry of an order, and to update as 
                        appropriate, information on location and 
                        identity (including social security number, 
                        residential and mailing addresses, telephone 
                        number, driver's license number, and name, 
                        address, and telephone number of employer); and
                            ``(ii) in any subsequent child support 
                        enforcement action between the same parties, 
                        the tribunal shall be authorized, upon 
                        sufficient showing that diligent effort has 
                        been made to ascertain such a party's current 
                        location, to deem due process requirements for 
                        notice and service of process to be met, with 
                        respect to such party, by delivery to the most 
                        recent residential or employer address so filed 
                        pursuant to clause (i).
                    ``(B) 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 orders issued in such cases have 
                        statewide effect; and
                            ``(ii) in the case of a State in which 
                        orders in such cases are issued by local 
                        jurisdictions, a case may be transferred 
                        between jurisdictions 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 ``(d)(1) Subject 
        to paragraph (2), if''; and
            (2) by adding at the end the following new paragraph:
    ``(2) 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) subsection (a)(12) (concerning recording of orders in 
        the central State case registry);
            ``(D) subsection (a)(13) (concerning recording of social 
        security numbers);
            ``(E) subsection (a)(14) (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 115(a)(2) and as amended by sections 121 and 122(c), is 
amended by adding at the end the following new subsection:
    ``(h) Expedited Administrative Procedures.--The automated system 
required under this section shall be used, to the maximum extent 
feasible, to implement any expedited administrative procedures required 
under section 466(c).''.

                  Subtitle E--Paternity Establishment

SEC. 141. STATE LAWS CONCERNING PATERNITY ESTABLISHMENT.

    (a) State Laws Required.--Section 466(a)(5) (42 U.S.C. 666(a)(5)) 
is amended--
            (1) in subparagraph (B)--
                    (A) by striking ``(B)'' and inserting ``(B)(i)'';
                    (B) in clause (i), as redesignated, by inserting 
                before the period ``, where such request is supported 
                by a sworn statement--
            ``(I) by such party alleging paternity setting forth facts 
        establishing a reasonable possibility of the requisite sexual 
        contact of the parties; or
            ``(II) by such party denying paternity setting forth facts 
        establishing a reasonable possibility of the nonexistence of 
        sexual contact of the parties;''; and
                    (C) by inserting after clause (i) (as redesignated) 
                the following new clause:
            ``(ii) Procedures which require the State agency, in any 
        case in which such agency orders genetic testing--
                    ``(I) to pay the costs of such tests, subject to 
                recoupment (where the State so elects) from the 
                putative father if paternity is established; and
                    ``(II) to obtain additional testing in any case 
                where an original test result is disputed, upon request 
                and advance payment by the disputing party.'';
            (2) by striking subparagraphs (C), (D), (E), and (F) and 
        inserting the following new subparagraphs:
            ``(C)(i) 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 putative father and the mother 
        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) 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) Such procedures must require the State agency 
        responsible for maintaining birth records to offer voluntary 
        paternity establishment services.
            ``(iv) The Secretary shall prescribe regulations governing 
        voluntary paternity establishment services offered by hospitals 
        and birth record agencies. 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, 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, voluntary paternity establishment programs of 
        hospitals and birth record agencies.
            ``(v) 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)(i) 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)(I) 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.
            ``(II) Procedures under which, after the 60-day period 
        referred to in clause (i), a minor who signs 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--
                    ``(aa) attaining the age of majority; or
                    ``(bb) 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, 
                guardian ad litem, or attorney.
            ``(E) Procedures under which no judicial or administrative 
        proceedings are required or permitted to ratify an unchallenged 
        acknowledgment of paternity.
            ``(F) Procedures requiring--
                    ``(i) that the State admit into evidence, for 
                purposes of establishing paternity, results of any 
                genetic test that is--
                            ``(I) of a type generally acknowledged, by 
                        accreditation bodies designated by the 
                        Secretary, as reliable evidence of paternity; 
                        and
                            ``(II) performed by a laboratory approved 
                        by such an accreditation body;
                    ``(ii) that any objection to genetic testing 
                results must be made in writing not later than a 
                specified number of days before any hearing at which 
                such results may be introduced into evidence (or, at 
                State option, not later than a specified number of days 
                after receipt of such results); and
                    ``(iii) that, if no objection is made, the test 
                results are admissible as evidence of paternity without 
                the need for foundation testimony or other proof of 
                authenticity or accuracy.''; and
            (3) by adding after subparagraph (H) the following new 
        subparagraphs:
            ``(I) Procedures providing that the parties to an action to 
        establish paternity are not entitled to a jury trial.
            ``(J) 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) 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 and testing on behalf of the child.
            ``(L) At the option of the State, procedures under which 
        the tribunal establishing paternity and support has discretion 
        to waive rights to all or part of amounts owed to the State 
        (but not to the mother) for costs related to pregnancy, 
        childbirth, and genetic testing and for public assistance paid 
        to the family where the father cooperates or acknowledges 
        paternity before or after genetic testing.
            ``(M) Procedures ensuring that the putative father has a 
        reasonable opportunity to initiate a paternity action.''.
    (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. 142. OUTREACH FOR VOLUNTARY PATERNITY ESTABLISHMENT.

    (a) State Plan Requirement.--Section 454(23) (42 U.S.C. 654(23)) is 
amended--
            (1) by striking ``(23)'' and inserting ``(23)(A)'';
            (2) by inserting ``and'' after the semicolon; and
            (3) by adding at the end the following new subparagraph:
            ``(B) publicize the availability and encourage the use of 
        procedures for voluntary establishment of paternity and child 
        support through a variety of means, which--
                    ``(i) include distribution of written materials at 
                health care facilities (including hospitals and 
                clinics), and other locations such as schools;
                    ``(ii) may include prenatal programs to educate 
                expectant couples on individual and joint rights and 
                responsibilities with respect to paternity (and may 
                require all expectant recipients of assistance under 
                part A to participate in such prenatal programs, as an 
                element of cooperation with efforts to establish 
                paternity and child support); and
                    ``(iii) include, with respect to each child 
                discharged from a hospital after birth for whom 
                paternity or child support has not been established, 
                reasonable followup efforts (including at least one 
                contact of each parent whose whereabouts are known, 
                except where there is reason to believe such followup 
                efforts would put mother or child at risk), providing--
                            ``(I) in the case of a child for whom 
                        paternity has not been established, information 
                        on the benefits of and procedures for 
                        establishing paternity; and
                            ``(II) in the case of a child for whom 
                        paternity has been established but child 
                        support has not been established, information 
                        on the benefits of and procedures for 
                        establishing a child support order, and an 
                        application for child support services;''.
    (b) Enhanced Federal Matching.--Section 455(a)(1)(C) (42 U.S.C. 
655(a)(1)(C)) is amended--
            (1) by inserting ``(i)'' before ``laboratory costs'', and
            (2) by inserting before the semicolon ``, and (ii) costs of 
        outreach programs designed to encourage voluntary 
        acknowledgment of paternity''.
    (c) Effective Dates.--
            (1) In general.--The amendments made by subsection (a) 
        shall become effective October 1, 1997.
            (2) Exception.--The amendments made by subsection (b) shall 
        be effective with respect to calendar quarters beginning on and 
        after October 1, 1996.

      Subtitle F--Establishment and Modification of Support Orders

SEC. 151. NATIONAL CHILD SUPPORT GUIDELINES COMMISSION.

    (a) Establishment.--There is hereby established a commission to be 
known as the ``National Child Support Guidelines Commission'' (in this 
section referred to as the ``Commission'').
    (b) General Duties.--The Commission shall develop a national child 
support guideline for consideration by the Congress that is based on a 
study of various guideline models, the benefits and deficiencies of 
such models, and any needed improvements.
    (c) Membership.--
            (1) Number; appointment.--
                    (A) In general.--The Commission shall be composed 
                of 12 individuals appointed jointly by the Secretary of 
                Health and Human Services and the Congress, not later 
than January 15, 1997, of which--
                            (i) 2 shall be appointed by the Chairman of 
                        the Committee on Finance of the Senate, and 1 
                        shall be appointed by the ranking minority 
                        member of such Committee;
                            (ii) 2 shall be appointed by the Chairman 
                        of the Committee on Ways and Means of the House 
                        of Representatives, and 1 shall be appointed by 
                        the ranking minority member of such Committee; 
                        and
                            (iii) 6 shall be appointed by the Secretary 
                        of Health and Human Services.
                    (B) Qualifications of members.--Members of the 
                Commission shall have expertise and experience in the 
                evaluation and development of child support guidelines. 
                At least 1 member shall represent advocacy groups for 
                custodial parents, at least 1 member shall represent 
                advocacy groups for noncustodial parents, and at least 
                1 member shall be the director of a State program under 
                part D of title IV of the Social Security Act.
            (2) Terms of office.--Each member shall be appointed for a 
        term of 2 years. A vacancy in the Commission shall be filled in 
        the manner in which the original appointment was made.
    (d) Commission Powers, Compensation, Access to Information, and 
Supervision.--The first sentence of subparagraph (C), the first and 
third sentences of subparagraph (D), subparagraph (F) (except with 
respect to the conduct of medical studies), clauses (ii) and (iii) of 
subparagraph (G), and subparagraph (H) of section 1886(e)(6) of the 
Social Security Act shall apply to the Commission in the same manner in 
which such provisions apply to the Prospective Payment Assessment 
Commission.
    (e) Report.--Not later than 2 years after the appointment of 
members, the Commission shall submit to the President, the Committee on 
Ways and Means of the House of Representatives, and the Committee on 
Finance of the Senate, a recommended national child support guideline 
and a final assessment of issues relating to such a proposed national 
child support guideline.
    (f) Termination.--The Commission shall terminate 6 months after the 
submission of the report described in subsection (e).

SEC. 152. 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)(A)(i) Procedures under which--
                    ``(I) every 3 years, at the request of either 
                parent subject to a child support order, the State 
                shall review and, as appropriate, adjust the order in 
                accordance with the guidelines established under 
                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 such guidelines, without a 
                requirement for any other change in circumstances; and
                    ``(II) upon request at any time of either parent 
                subject to a child support order, the State shall 
                review and, as appropriate, adjust the order in 
                accordance with the guidelines established under 
                section 467(a) based on a substantial change in the 
                circumstances of either such parent.
            ``(ii) Such procedures shall require both parents subject 
        to a child support order to be notified of their rights and 
        responsibilities provided for under clause (i) at the time the 
        order is issued and in the annual information exchange form 
        provided under subparagraph (B).
            ``(B) Procedures under which each child support order 
        issued or modified in the State after the effective date of 
        this subparagraph shall require the parents subject to the 
        order to provide each other with a complete statement of their 
        respective financial condition annually on a form which shall 
        be established by the Secretary and provided by the State. The 
        Secretary shall establish regulations for the enforcement of 
        such exchange of information.''.

               Subtitle G--Enforcement of Support Orders

SEC. 161. FEDERAL INCOME TAX REFUND OFFSET.

    (a) Changed Order of Refund Distribution Under Internal Revenue 
Code.--Section 6402(c) of the Internal Revenue Code of 1986 (relating 
to offset of past-due support against overpayments) is amended--
            (1) by striking ``has been assigned'' and inserting ``has 
        not been assigned''; and
            (2) by striking ``and shall be applied'' and all that 
        follows through the period and inserting ``and shall thereafter 
        be applied to satisfy any past-due support that has been so 
        assigned.''.
    (b) Elimination of Disparities in Treatment of Assigned and 
Nonassigned Arrearages.--
            (1) In general.--Section 464(a) (42 U.S.C. 664(a)) is 
        amended--
                    (A) in paragraph (1)--
                            (i) in the first 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 second sentence, by striking 
                        ``in accordance with section 457(b)(4) or 
                        (d)(3)'' and inserting ``as provided in 
                        paragraph (2)'';
                    (B) in paragraph (2), to read as follows:
    ``(2) The State agency shall distribute amounts paid by the 
Secretary of the Treasury pursuant to paragraph (1)--
            ``(A) in accordance with subsection (a)(4) or (d)(3) of 
        section 457, in the case of past-due support assigned to a 
        State pursuant to section 402(a)(26) or section 471(a)(17);
            ``(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
                    (C) in paragraph (3)--
                            (i) by striking ``or (2)'' each place it 
                        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) Notices of past-due support.--Section 464(b) (42 U.S.C. 
        664(b)) is amended--
                    (A) by striking ``(b)(1)'' and inserting ``(b)''; 
                and
                    (B) by striking paragraph (2).
            (3) Definition of past-due support.--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 ``(c) As''; and
                    (B) by striking paragraphs (2) and (3).
    (c) Treatment of Lump-Sum Tax Refund Under AFDC.--
            (1) Exemption from lump-sum rule.--Section 402(a)(17) (42 
        U.S.C. 602(a)(17)) is amended by inserting before the semicolon 
        at the end the following: ``, but this paragraph shall not 
        apply to income received by a family that is attributable to a 
        child support obligation owed with respect to a member of the 
        family and that is paid to the family from amounts withheld 
        from a Federal income tax refund otherwise payable to the 
        person owing such obligation, to the extent that such income is 
        placed in a qualified asset account (as defined in section 
        406(j)) the total amounts in which, after such placement, does 
        not exceed $10,000''.
            (2) Qualified asset account defined.--Section 406 (42 
        U.S.C. 606), as amended by section 102(g)(2), is amended by 
        adding at the end the following new subsection:
    ``(j)(1) The term `qualified asset account' means a mechanism 
approved by the State (such as individual retirement accounts, escrow 
accounts, or savings bonds) that allows savings of a family receiving 
aid to families with dependent children to be used for qualified 
distributions.
    ``(2) The term `qualified distribution' means a distribution from a 
qualified asset account for expenses directly related to 1 or more of 
the following purposes:
            ``(A) The attendance of a member of the family at any 
        education or training program.
            ``(B) The improvement of the employability (including self-
        employment) of a member of the family (such as through the 
        purchase of an automobile).
            ``(C) The purchase of a home for the family.
            ``(D) A change of the family residence.''.
    (d) Effective Date.--The amendments made by this section shall 
become effective October 1, 1999.

SEC. 162. INTERNAL REVENUE SERVICE COLLECTION OF ARREARAGES.

    (a) Amendment to Internal Revenue Code.--Section 6305(a) of the 
Internal Revenue Code of 1986 (relating to collection of certain 
liability) is amended--
            (1) in paragraph (1), by inserting ``except as provided in 
        paragraph (5)'' after ``collected'';
            (2) by striking ``and'' at the end of paragraph (3);
            (3) by striking the period at the end of paragraph (4) and 
        inserting ``, and'';
            (4) by adding at the end the following new paragraph:
            ``(5) no additional fee may be assessed for adjustments to 
        an amount previously certified pursuant to such section 452(b) 
        with respect to the same obligor.''; and
            (5) by striking ``Secretary of Health, Education, and 
        Welfare'' each place it appears and inserting ``Secretary of 
        Health and Human Services''.
    (b) Effective Date.--The amendments made by this section shall 
become effective October 1, 1997.

SEC. 163. AUTHORITY TO COLLECT SUPPORT FROM FEDERAL EMPLOYEES.

    (a) Consolidation and Streamlining of Authorities.--Section 459 (42 
U.S.C. 659) is amended--
            (1) in the heading, by inserting ``income withholding,'' 
        before ``garnishment'';
            (2) in subsection (a)--
                    (A) by striking ``section 207'' and inserting 
                ``section 207 and section 5301 of title 38, United 
                States Code''; and
                    (B) by striking ``to legal process'' and all that 
                follows through the period and inserting ``to 
                withholding in accordance with State law pursuant to 
                subsections (a)(1) and (b) of section 466 and 
                regulations of the Secretary thereunder, and to any 
                other legal process brought, by a State agency 
                administering a program under this part or by an 
                individual obligee, to enforce the legal obligation of 
                such individual to provide child support or alimony.'';
            (3) in subsection (b), to read as follows:
    ``(b) Except as otherwise provided herein, each entity specified in 
subsection (a) shall be subject, with respect to notice to withhold 
income pursuant to subsection (a)(1) or (b) of section 466, or to any 
other order or process to enforce support obligations against an 
individual (if such order or process contains or is accompanied by 
sufficient data to permit prompt identification of the individual and 
the moneys involved), to the same requirements as would apply if such 
entity were a private person.'';
            (4) by striking subsections (c) and (d) and inserting the 
        following new subsections:
    ``(c)(1) The head of each agency subject to the requirements of 
this section shall--
            ``(A) designate an agent or agents to receive orders and 
        accept service of process; and
            ``(B) publish--
                    ``(i) in the appendix of such regulations;
                    ``(ii) in each subsequent republication of such 
                regulations; and
                    ``(iii) annually in the Federal Register,
        the designation of such agent or agents, identified by title of 
        position, mailing address, and telephone number.
    ``(2) Whenever an agent designated pursuant to paragraph (1) 
receives notice pursuant to subsection (a)(1) or (b) of section 466, or 
is effectively served with any order, process, or interrogatories, with 
respect to an individual's child support or alimony payment 
obligations, such agent shall--
            ``(A) as soon as possible (but not later than 15 days) 
        thereafter, send written notice of such notice or service 
        (together with a copy thereof) to such individual at his duty 
        station or last-known home address;
            ``(B) not later than 30 days (or such longer period as may 
        be prescribed by applicable State law) after receipt of a 
        notice pursuant to subsection (a)(1) or (b) of section 466, 
        comply with all applicable provisions of such section 466; and
            ``(C) not later than 30 days (or such longer period as may 
        be prescribed by applicable State law) after effective service 
        of any other such order, process, or interrogatories, respond 
        thereto.
    ``(d) In the event that a governmental entity 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 the 
        provisions of such section 466(b) and regulations thereunder; 
        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.'';
            (5) in subsection (f)--
                    (A) by striking ``(f)'' and inserting ``(f)(1)''; 
                and
                    (B) by adding at the end the following new 
                paragraph:
    ``(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 him in connection with the 
carrying out of such duties.''; and
            (6) by adding at the end the following new subsection:
    ``(g) Authority to promulgate regulations for the implementation of 
the provisions of this section shall, insofar as the provisions of this 
section are applicable to moneys due from (or payable by)--
            ``(1) the executive branch of the Federal Government 
        (including in such branch, for the purposes of this subsection, 
        the territories and possessions of the United States, the 
        United States Postal Service, the Postal Rate Commission, any 
        wholly owned Federal corporation created by an Act of Congress, 
        and the government of the District of Columbia), be vested in 
        the President (or the President's designee);
            ``(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 Chief 
        Justice's designee).
    ``(h) Subject to subsection (i), moneys paid or payable to an 
individual which are considered to be based upon remuneration for 
employment, for purposes of this section--
            ``(1) consist of--
                    ``(A) compensation paid or payable for personal 
                services of such individual, whether such compensation 
                is denominated as wages, salary, commission, bonus, 
                pay, allowances, or otherwise (including severance pay, 
                sick pay, and incentive pay);
                    ``(B) 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 such Secretary to a former 
                        member of the Armed Forces who is in receipt of 
retired or retainer pay if such former member has waived a portion of 
his retired pay in order to receive such compensation); and
                    ``(C) worker's compensation benefits paid under 
                Federal or State law; but
            ``(2) do not include any payment--
                    ``(A) by way of reimbursement or otherwise, to 
                defray expenses incurred by such individual in carrying 
                out duties associated with his employment; or
                    ``(B) 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.
    ``(i) In determining the amount of any moneys due from, or payable 
by, the United States to any individual, there shall be excluded 
amounts which--
            ``(1) are owed by such individual to the United States;
            ``(2) 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;
            ``(3) are properly withheld for Federal, State, or local 
        income tax purposes, if the withholding of such amounts is 
        authorized or required by law and if amounts withheld are not 
        greater than would be the case if such individual claimed all 
        the dependents that the individual was entitled to (the 
        withholding of additional amounts pursuant to section 3402(i) 
        of the Internal Revenue Code of 1986 may be permitted only when 
        such individual presents evidence of a tax obligation which 
        supports the additional withholding);
            ``(4) are deducted as health insurance premiums;
            ``(5) are deducted as normal retirement contributions (not 
        including amounts deducted for supplementary coverage); or
            ``(6) are deducted as normal life insurance premiums from 
        salary or other remuneration for employment (not including 
        amounts deducted for supplementary coverage).
    ``(j) For purposes of this section--''.
    (b) Transfer of Subsections.--Subsections (a) through (e) of 
section 462 (42 U.S.C. 662), are transferred and redesignated as 
paragraphs (1) through (4), respectively of section 459(j) (as added by 
subsection (a)(6)), and the left margin of each of such paragraphs (1) 
through (4) is indented 2 ems to the right of the left margin of 
subsection (j) (as added by subsection (a)(6)).
    (c) Conforming Amendments.--
            (1) To part d of title iv.--Sections 461 and 462 (42 U.S.C. 
        661, 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)'' each place it 
        appears and inserting ``section 459 of the Social Security Act 
        (42 U.S.C. 659)''.
    (d) Military Retired and Retainer Pay.--Section 1408(a) of title 
10, United States Code, is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (B), by striking ``and'';
                    (B) in subparagraph (C), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(D) any administrative or judicial tribunal of a 
                State competent to enter orders for support or 
                maintenance (including a State agency administering a 
                State program under part D of title IV of the Social 
                Security Act).'';
            (2) in paragraph (2), 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) in subsection (d)--
                    (A) in the heading, by inserting ``(or for benefit 
                of)'' after ``concerned''; and
                    (B) in paragraph (1), in the first sentence, by 
                inserting ``(or for the benefit of such spouse or 
                former spouse to a State central collections unit 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''; and
            (4) by adding at the end the following new subsection:
    ``(j) Relationship to Other Laws.--In any case involving a child 
support order against 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 the 
Social Security Act.''.
    (e) Effective Date.--The amendments made by this section shall 
become effective 6 months after the date of the enactment of this Act.

SEC. 164. 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.--Not later than 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.
    (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 such 
                term in section 1408(a) of title 10, United States 
                Code.
                    (B) The term ``child support'' has the meaning 
                given such term in section 462 of the Social Security 
                Act (42 U.S.C. 662).
    (c) Payment of Military Retired Pay in Compliance With Child 
Support Orders.--Section 1408 of title 10, United States Code, as 
amended by section 163(d)(4), is amended--
            (1) by redesignating subsections (i) and (j) as subsections 
        (j) and (k), respectively;
            (2) by inserting after subsection (h) the following new 
        subsection:
    ``(i) Certification Date.--It is not necessary that the date of a 
certification of the authenticity or completeness of a copy of a court 
order 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.''; and
            (3) in subsection (d)--
                    (A) in paragraph (1), by inserting after the first 
                sentence the following: ``In the case of a spouse or 
                former spouse who, pursuant to section 402(a)(26) of 
                the Social Security Act (42 U.S.C. 602(26)), assigns to 
                a State the rights of the spouse or former spouse to 
                receive support, the Secretary concerned may make the 
                child support payments referred to in the preceding 
                sentence to that State in amounts consistent with that 
                assignment of rights.''; and
                    (B) by adding at the end the following new 
                paragraph:
    ``(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.''.

SEC. 165. MOTOR VEHICLE LIENS.

    Section 466(a)(4) (42 U.S.C. 666(a)(4)) is amended--
            (1) by striking ``(4)'' and inserting ``(4)(A)''; and
            (2) by adding at the end the following new subparagraph:
            ``(B) Procedures for placing liens for arrears of child 
        support on motor vehicle titles of individuals owing such 
        arrearages equal to or exceeding 2 months of support, under 
        which--
                    ``(i) any person owed such arrears may place such a 
                lien;
                    ``(ii) the State agency administering the program 
                under this part shall systematically place such liens;
                    ``(iii) expedited methods are provided for--
                            ``(I) ascertaining the amount of arrears; 
                        and
                            ``(II) affording the person owing the 
                        arrearages or other titleholder to contest the 
amount of arrearages or to obtain a release upon fulfilling the support 
obligation;
                    ``(iv) such a lien has precedence over all other 
                encumbrances on a vehicle title other than a purchase 
                money security interest; and
                    ``(v) the individual or State agency owed the 
                arrears may execute on, seize, and sell the property in 
                accordance with State law.''.

SEC. 166. VOIDING OF FRAUDULENT TRANSFERS.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 101(a), 
126(a), and 131, is amended by adding at the end the following new 
paragraph:
            ``(15) Procedures under which--
                    ``(A) the State has in effect--
                            ``(i) the Uniform Fraudulent Conveyance Act 
                        of 1981;
                            ``(ii) the Uniform Fraudulent Transfer Act 
                        of 1984; or
                            ``(iii) 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
                    ``(B) 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--
                            ``(i) seek to void such transfer; or
                            ``(ii) obtain a settlement in the best 
                        interests of the child support creditor.''.

SEC. 167. STATE LAW AUTHORIZING SUSPENSION OF LICENSES.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 101(a), 
126(a), 131, and 166, is amended by adding at the end the following new 
paragraph:
            ``(16) Procedures under which the State has (and uses in 
        appropriate cases) authority (subject to appropriate due 
        process safeguards) to withhold or suspend, or to restrict the 
        use of driver's licenses, professional and occupational 
        licenses, and recreational licenses of individuals owing 
        overdue child support or failing, after receiving appropriate 
        notice, to comply with subpoenas or warrants relating to 
        paternity or child support proceedings.''.

SEC. 168. REPORTING ARREARAGES TO CREDIT BUREAUS.

    Section 466(a)(7) (42 U.S.C. 666(a)(7)) is amended to read as 
follows:
            ``(7)(A) Procedures (subject to safeguards pursuant to 
        subparagraph (B)) requiring the State to report periodically to 
        consumer reporting agencies (as defined in section 603(f) of 
        the Fair Credit Reporting Act (15 U.S.C. 1681a(f)) the name of 
        any absent parent who is delinquent by 90 days or more in the 
        payment of support, and the amount of overdue support owed by 
        such parent.
            ``(B) Procedures ensuring that, in carrying out 
        subparagraph (A), information with respect to an absent parent 
        is reported--
                    ``(i) only after such parent has been afforded all 
                due process required under State law, including notice 
                and a reasonable opportunity to contest the accuracy of 
                such information; and
                    ``(ii) only to an entity that has furnished 
                evidence satisfactory to the State that the entity is a 
                consumer reporting agency.''.

SEC. 169. EXTENDED STATUTE OF LIMITATION FOR COLLECTION OF ARREARAGES.

    (a) Amendments.--Section 466(a)(9) (42 U.S.C. 666(a)(9)) is 
amended--
            (1) by redesignating subparagraphs (A), (B), and (C) as 
        clauses (i), (ii), and (iii), respectively;
            (2) by striking ``(9)'' and inserting ``(9)(A)''; and
            (3) by adding at the end the following new subparagraph:
            ``(B) Procedures under which the statute of limitations on 
        any arrearages of child support extends at least until the 
        child owed such support is 30 years of age.''.
    (b) Application of Requirement.--The amendment made by this section 
shall not be interpreted to require any State law to revive any payment 
obligation which had lapsed prior to the effective date of such State 
law.

SEC. 170. CHARGES FOR ARREARAGES.

    (a) State Law Requirement.--Section 466(a) (42 U.S.C. 666(a)), as 
amended by sections 101(a), 126(a), 131, 166, and 167, is amended by 
adding at the end the following new paragraph:
            ``(17) Procedures providing for the calculation and 
        collection of interest or penalties for arrearages of child 
        support, and for distribution of such interest or penalties 
        collected for the benefit of the child (except where the right 
        to support has been assigned to the State).''.
    (b) Regulations.--The Secretary of Health and Human Services shall 
establish by regulation a rule to resolve choice of law conflicts 
arising in the implementation of the amendment made by subsection (a).
    (c) Conforming Amendment.--Section 454(21) (42 U.S.C. 654(21)) is 
repealed.
    (d) Effective Date.--The amendments made by this section shall be 
effective with respect to arrearages accruing on or after October 1, 
1998.

SEC. 171. DENIAL OF PASSPORTS FOR NONPAYMENT OF CHILD SUPPORT.

    (a) HHS Certification Procedure.--
            (1) Secretarial responsibility.--Section 452 (42 U.S.C. 
        652), as amended by sections 115(a)(3) and 117, is amended by 
        adding at the end the following new subsection:
    ``(l)(1) If the Secretary receives a certification by a State 
agency in accordance with the requirements of section 454(28) that an 
individual owes arrearages of child support in an amount exceeding 
$5,000 or in an amount exceeding 24 months worth of child support, the 
Secretary shall transmit such certification to the Secretary of State 
for action (with respect to denial, revocation, or limitation of 
passports) pursuant to section 171(b) of the Child Support 
Responsibility Act of 1995.
    ``(2) The Secretary shall not be liable to an individual for any 
action with respect to a certification by a State agency under this 
section.''.
            (2) State cse agency responsibility.--Section 454 (42 
        U.S.C. 654), as amended by sections 104(a), 114(b), and 122(a), 
        is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (26);
                    (B) by striking the period at the end of paragraph 
                (27) and inserting ``; and''; and
                    (C) by adding after paragraph (27) the following 
                new paragraph:
            ``(28) provide that the State agency will have in effect a 
        procedure (which may be combined with the procedure for tax 
        refund offset under section 464) for certifying to the 
        Secretary, for purposes of the procedure under section 452(l) 
        (concerning denial of passports) determinations that 
        individuals owe arrearages of child support in an amount 
        exceeding $5,000 or in an amount exceeding 24 months worth of 
        child support, under which procedure--
                    ``(A) each individual concerned is afforded notice 
                of such determination and the consequences thereof, and 
                an opportunity to contest the determination; and
                    ``(B) the certification by the State agency is 
                furnished to the Secretary in such format, and 
                accompanied by such supporting documentation, as the 
                Secretary may require.''.
    (b) State Department Procedure for Denial of Passports.--
            (1) In general.--The Secretary of State, upon certification 
        by the Secretary of Health and Human Services, in accordance 
        with section 452(l) of the Social Security Act, that an 
        individual owes arrearages of child support in excess of 
        $5,000, shall refuse to issue a passport to such individual, 
        and may revoke, restrict, or limit a passport issued previously 
        to such individual.
            (2) Limit on liability.--The Secretary of State shall not 
        be liable to an individual for any action with respect to a 
        certification by a State agency under this subsection.
    (c) Effective Date.--This section and the amendments made by this 
section shall become effective October 1, 1996.

SEC. 172. INTERNATIONAL CHILD SUPPORT ENFORCEMENT.

    (a) Sense of the Congress That the United States Should Ratify the 
United Nations Convention of 1956.--It is the sense of the Congress 
that the United States should ratify the United Nations Convention of 
1956.
    (b) Treatment of International Child Support Cases as Interstate 
Cases.--Section 454 (42 U.S.C. 654), as amended by sections 104(a), 
114(b), 122(a), and 171(a)(2), is amended--
            (1) by striking ``and'' at the end of paragraph (27);
            (2) by striking the period at the end of paragraph (28) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (28) the following new 
        paragraph:
            ``(29) provide that the State must treat international 
        child support cases in the same manner as the State treats 
        interstate child support cases.''.

                      Subtitle H--Medical Support

SEC. 181. 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) in clause (ii) by striking the period and inserting a 
        comma; and
            (3) by adding after clause (ii), the following flush left 
        language:
                ``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.--
                    (A) In general.--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--
                            (i) 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
                            (ii) 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.
                    (B) No failure for compliance with this 
                paragraph.--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.

  TITLE II--INCREASED ACCESS TO FINANCIAL INFORMATION OF NONCUSTODIAL 
           PARENTS AND ADDITIONAL IMPROVEMENTS IN ENFORCEMENT

SEC. 201. NONLIABILITY FOR DEPOSITORY INSTITUTIONS PROVIDING FINANCIAL 
              RECORDS TO STATE CHILD SUPPORT ENFORCEMENT AGENCIES IN 
              CHILD SUPPORT CASES.

    (a) In General.--Notwithstanding any other provision of Federal or 
State law, a depository institution shall not be liable under any 
Federal or State law to any person for disclosing any financial record 
of an individual to a State child support enforcement agency attempting 
to establish, modify, or enforce a child support obligation of such 
individual.
    (b) Prohibition of Disclosure of Financial Record Obtained by State 
Child Support Enforcement Agency.--A State child support enforcement 
agency which obtains a financial record of an individual from a 
financial institution pursuant to subsection (a) may disclose such 
financial record only for the purpose of, and to the extent necessary 
in, establishing, modifying, or enforcing a child support obligation of 
such individual.
    (c) Civil Damages for Unauthorized Disclosure.--
            (1) Disclosure by state officer or employee.--If any person 
        knowingly, or by reason of negligence, discloses a financial 
        record of an individual in violation of subsection (b), such 
        individual may bring a civil action for damages against such 
        person in a district court of the United States.
            (2) No liability for good faith but erroneous 
        interpretation.--No liability shall arise under this subsection 
        with respect to any disclosure which results from a good faith, 
        but erroneous, interpretation of subsection (b).
            (3) Damages.--In any action brought under paragraph (1), 
        upon a finding of liability on the part of the defendant, the 
defendant shall be liable to the plaintiff in an amount equal to the 
sum of--
                    (A) the greater of--
                            (i) $1,000 for each act of unauthorized 
                        disclosure of a financial record with respect 
                        to which such defendant is found liable; or
                            (ii) the sum of--
                                    (I) the actual damages sustained by 
                                the plaintiff as a result of such 
                                unauthorized disclosure; plus
                                    (II) in the case of a willful 
                                disclosure or a disclosure which is the 
                                result of gross negligence, punitive 
                                damages; plus
                    (B) the costs (including attorney's fees) of the 
                action.
    (d) Definitions.--For purposes of this section:
            (1) The term ``depository institution'' means--
                    (A) a depository institution, as defined in section 
                3(c) of the Federal Deposit Insurance Act (12 U.S.C. 
                1813(c));
                    (B) an institution-affiliated party, as defined in 
                section 3(u) of such Act (12 U.S.C. 1813(v)); and
                    (C) any Federal credit union or State credit union, 
                as defined in section 101 of the Federal Credit Union 
                Act (12 U.S.C. 1752), including an institution-
                affiliated party of such a credit union, as defined in 
                section 206(r) of such Act (12 U.S.C. 1786(r)).
            (2) The term ``financial record'' has the meaning given 
        such term in section 1101 of the Right to Financial Privacy Act 
        of 1978 (12 U.S.C. 3401).
            (3) The term ``State child support enforcement agency'' 
        means a State agency which administers a State program for 
        establishing and enforcing child support obligations.

SEC. 202. ACCESS TO AND USE OF CONSUMER REPORTS BY STATE CHILD SUPPORT 
              ENFORCEMENT AGENCIES IN CHILD SUPPORT CASES.

    Section 604 of the Fair Credit Reporting Act (15 U.S.C. 1681b) is 
amended by adding at the end the following new paragraph:
            ``(4) To a State child support enforcement agency that is 
        seeking to establish, modify, or enforce a child support 
        obligation against the consumer, if--
                    ``(A) the paternity of the consumer for the child 
                to which the obligation relates has been established or 
                acknowledged by the consumer in accordance with State 
                laws under which the obligation arises (if required by 
                those laws); and
                    ``(B) the State child support enforcement agency--
                            ``(i) before obtaining the consumer report, 
                        provides written notice to the consumer that 
                        the State agency intends to obtain a consumer 
                        report on the consumer; and
                            ``(ii) certifies to the consumer reporting 
                        agency that--
                                    ``(I) the requirement in 
                                subparagraph (A) has been fulfilled (if 
                                applicable); and
                                    ``(II) the notice required by 
                                clause (i) has been provided.''.

SEC. 203. HEALTH CARE SUPPORT.

    (a) Inclusion in Child Support Orders.--
            (1) In general.--Section 466(a) (42 U.S.C. 666(a)), as 
        amended by sections 101(a), 126(a), 131, 166, 167, and 170(a) 
        is amended by inserting after paragraph (17) the following new 
        paragraph:
            ``(18) Not later than the beginning of the ninth calendar 
        month that begins after the date the Secretary prescribes final 
        regulations as provided for in section 467(d)(2):
                    ``(A) Procedures which require any child support 
                order, issued or modified by a court or administrative 
                agency of the State on or after the effective date of 
                guidelines established by the State under section 
                467(d), to provide for coverage of the health care 
                costs of the child in accordance with such guidelines.
                    ``(B) Procedures which require the expedited 
                consideration and disposition of any allegation of 
                noncompliance with an obligation to cover the health 
                care costs of a child imposed under a child support 
                order issued or modified in the State.''.
            (2) State guidelines.--Section 467 (42 U.S.C. 667) is 
        amended by adding at the end the following new subsection:
    ``(d)(1) Not later than the beginning of the ninth calendar month 
that begins after the date the Secretary prescribes final regulations 
as provided for in paragraph (2), each State, as a condition for having 
its State plan approved under this part, must establish guidelines for 
the coverage of the health care costs of children pursuant to child 
support orders issued or modified in the State. Guidelines established 
under this subsection shall create a streamlined process that meets the 
minimum standards established by the Secretary in final regulations 
promulgated under paragraph (2).
    ``(2)(A) The Secretary shall promulgate regulations which set forth 
minimum standards that any set of guidelines established pursuant to 
paragraph (1) must meet in providing for the coverage of the health 
care costs of children pursuant to child support orders issued or 
modified in the State, including--
            ``(i) the contents of such an order with respect to the 
        coverage of such costs;
            ``(ii) the distribution of responsibility for such costs;
            ``(iii) to the extent that such costs are to be covered 
        through health insurance--
                    ``(I) the provision of such insurance;
                    ``(II) the payment of insurance claims; and
                    ``(III) the rights of the noncustodial parent and 
                the custodial parent to insurance information;
            ``(iv) the circumstances under which a provider of health 
        insurance may or may not deny coverage to a child who is the 
        subject of such an order;
            ``(v) penalties to be imposed on providers of health 
        insurance who fail to comply with the guidelines; and
            ``(vi) how changes in the circumstances of the noncustodial 
        parent and the custodial parent are to be taken into account 
        with respect to the coverage of such costs.
    ``(B) In developing such standards, the Secretary shall ensure 
that, in establishing guidelines pursuant to paragraph (1), the State 
consider the following matters in the following order of importance:
            ``(i) The best interests of the child.
            ``(ii) The financial and other circumstances of the parents 
        of the child.
            ``(iii) Cost-effectiveness.
    ``(3) The preceding subsections of this section shall apply in like 
manner to the guidelines established pursuant to this subsection.''.
            (3) Regulations.--
                    (A) Proposed regulations.--Not later than 9 months 
                after the date of the enactment of this Act, the 
                Secretary of Health and Human Services shall issue 
                proposed regulations to implement the amendments made 
                by this subsection.
                    (B) Final regulations.--Not later than 14 months 
                after the date of the enactment of this Act, the 
                Secretary of Health and Human Services shall issue 
                final regulations to implement the amendments made by 
                this subsection.
    (b) Incentive Payments for Dependent Health Insurance Provided Due 
to Successful Enforcement.--
            (1) In general.--Section 458(a)(2) (42 U.S.C. 658), as 
        amended by section 112(a), is amended by redesignating 
        subparagraph (B) as subparagraph (C) and by inserting after 
        subparagraph (A) the following new subparagraph:
                    ``(B) Incentive payments for dependent health 
                insurance.--
                            ``(i) In general.--In setting performance 
                        standards pursuant to subparagraph (A)(i), the 
                        Secretary shall provide in regulations 
                        promulgated pursuant to such subparagraph, that 
                        the successful enforcement by the State of a 
                        provision of a support order requiring an 
                        absent parent to obtain health insurance for 1 
                        or more children (in this subparagraph referred 
                        to as the ``health insurance support'') shall 
                        be considered the collection of support from 
                        the absent parent, without regard to the means 
                        by which such support is provided.
                            ``(ii) Valuation.--The Secretary shall 
                        estimate the value of the health insurance 
                        support collected by a State and shall include 
                        in the regulations promulgated pursuant to 
                        subparagraph (A) performance standards and 
                        incentive adjustments for the collection of 
                        such support.
            (2) Study; report.--
                    (A) Study.--The Secretary of Health and Human 
                Services shall conduct a study to determine the 
                incentives that should be provided to encourage States 
                to enforce obligations of noncustodial parents to pay 
                (and obtain medical insurance coverage with respect to) 
                the reasonable and necessary health and dental expenses 
                of the children to whom the noncustodial parents owe 
                such obligations.
                    (B) Report.--Not later than 12 months after the 
                date of the enactment of this Act, the Secretary of 
                Health and Human Services shall submit to the Committee 
                on Ways and Means of the House of Representatives and 
                the Committee on Finance of the Senate the results of 
                the study required by subparagraph (A).

SEC. 204. ANNUAL REPORTS ON STATE COMPLIANCE WITH TIME LIMITS WITHIN 
              WHICH STATE MUST PROVIDE CERTAIN CHILD SUPPORT 
              ASSISTANCE.

    Section 452(a)(10) (42 U.S.C. 652(a)(10)) is amended--
            (1) in subparagraph (H), by striking ``and'';
            (2) in subparagraph (I), by striking the period and 
        inserting ``; and''; and
            (3) by inserting after subparagraph (I) the following new 
        subparagraph:
                    ``(J) compliance, by State, with the standards 
                established pursuant to subsections (h) and (i).''.

SEC. 205. WAGES WITHHELD BY EMPLOYERS TO PAY CHILD SUPPORT OBLIGATIONS 
              REQUIRED TO BE PAID TO STATE WITHIN 10 DAYS; LATE PAYMENT 
              PENALTY IMPOSED ON EMPLOYERS.

    (a) In General.--Section 466(b)(6)(A) (42 U.S.C. 666(b)(6)(A)) is 
amended--
            (1) in clause (i), by inserting ``within 10 days after the 
        payment of such wages'' before ``to the appropriate agency''; 
        and
            (2) by adding at the end the following new clause:
            ``(iii) The State shall require any employer who fails to 
        make any payment required in accordance with clause (i) within 
        the 10-day period described therein to pay the State a $1,000 
        penalty. The State shall expend all penalties collected in 
        accordance with this clause for the operation of the State plan 
        approved under section 454, not later than the end of the 
        calendar quarter following the calendar quarter in which 
        collected.''.
    (b) Effective Date.--
            (1) In general.--Except as provided in paragraph (2) of 
        this subsection, the amendments made by subsection (a) of this 
        section shall take effect on the date of the enactment of this 
        Act and apply to--
                    (A) wages paid on or after such date; and
                    (B) payments under part D of title IV of the Social 
                Security Act for calendar quarters beginning on or 
                after such date.
            (2) Delay permitted if state legislation required.--In the 
        case of a State plan approved under section 454 of the Social 
        Security Act which the Secretary of Health and Human Services 
        determines requires State legislation (other than legislation 
        appropriating funds) in order for the plan to meet the 
        additional requirements imposed by the amendments made by 
        subsection (a) of this section, the State plan shall not be 
        regarded as failing to comply with the requirements of such 
        section 454 solely on the basis of the failure of the plan to 
        meet such additional requirements before the 1st day of the 1st 
        calendar quarter beginning after the close of the 1st regular 
        session of the State legislature that begins after the date of 
        the 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.

SEC. 206. NATIONAL PARENT LOCATOR NETWORK.

    Section 453 of the Social Security Act (42 U.S.C. 653), as amended 
by sections 125(c)(2) and 125(f), is amended by adding at the end the 
following new subsection:
    ``(p) The Secretary shall expand the Federal 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 1 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 involving 
                the same absent parent, and obtain the details of any 
                such order;
                    ``(C) provide for both on-line and batch processing 
                of locate requests, with on-line access restricted to 
                cases in which the information is needed immediately 
                (for such reasons as court appearances) and batch 
                processing used to `troll' data bases to locate 
                individuals or update information periodically; and
                    ``(D) direct locate requests to individual States 
                or Federal agencies, broadcast requests to selected 
                States, or broadcast cases to all States when there is 
                no indication of the source of needed information;
            ``(2) provide for a maximum of 48-hour turnaround time for 
        information to be broadcast and returned to a requesting State; 
        and
            ``(3) provide ready access to courts of the information on 
        the network by location of a computer terminal in each 
        court.''.

                       TITLE III--EFFECTIVE DATES

SEC. 301. EFFECTIVE DATES.

    (a) In General.--Except as otherwise specifically provided (but 
subject to subsections (b) and (c))--
            (1) provisions of this Act requiring enactment or amendment 
        of State laws under section 466 of the Act, or revision of 
        State plans under section 454 of the Act, shall be effective 
        with respect to periods beginning on and after October 1, 1996; 
        and
            (2) all other provisions of this Act shall become effective 
        upon the date of the enactment of this Act.
    (b) Grace Period for State Law Changes.--The provisions of this Act 
shall become effective with respect to a State on the later of--
            (1) any date specified in this Act; 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 the 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 Act 
if it is unable to comply without amending the State constitution until 
the earlier of--
            (1) the date which is 1 year after the effective date of 
        the necessary State constitutional amendment; or
            (2) the date which is 5 years after the date of the 
        enactment of this Act.
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