[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 687 Introduced in Senate (IS)]







104th CONGRESS
  1st Session
                                 S. 687

  To improve and strengthen child support enforcement, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                April 6 (legislative day, April 5), 1995

   Mr. Pryor introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To improve and strengthen child support enforcement, 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.

    This Act may be cited as the ``Child Support Enforcement Act of 
1995''.

SEC. 2. TABLE OF CONTENTS; REFERENCES.

    (a) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title.
Sec. 2. Table of contents; references.
    TITLE I--ELIGIBILITY AND OTHER MATTERS CONCERNING CHILD SUPPORT 
                      ENFORCEMENT PROGRAM CLIENTS

Sec. 101. Cooperation requirement and good cause exception.
Sec. 102. State obligation to provide paternity establishment and child 
                            support enforcement services.
Sec. 103. Distribution of payments.
Sec. 104. Due process rights.
Sec. 105. Privacy safeguards.
Sec. 106. Requirement to facilitate access to services.
              TITLE II--PROGRAM ADMINISTRATION AND FUNDING

Sec. 201. Federal matching payments.
Sec. 202. Performance-based incentives and penalties.
Sec. 203. Federal and State reviews and audits.
Sec. 204. Automated data processing requirements.
Sec. 205. Director of OSCE program; training and staffing.
Sec. 206. Funding for secretarial assistance to State programs.
Sec. 207. Data collection and reports by the Secretary.
Sec. 208. Coordination with income and eligibility verification system.
                  TITLE III--LOCATE AND CASE TRACKING

Sec. 301. Central State case registry.
Sec. 302. Centralized collection and disbursement of support payments.
Sec. 303. Amendments concerning income withholding.
Sec. 304. Locator information from interstate networks and labor 
                            unions.
Sec. 305. National child support information clearinghouse.
Sec. 306. Expanded locate authority.
Sec. 307. Studies and demonstrations concerning Federal parent locator 
                            service.
Sec. 308. Use of Social Security numbers.
          TITLE IV--STREAMLINING AND UNIFORMITY OF PROCEDURES

Sec. 401. Adoption of uniform State laws.
Sec. 402. State laws providing expedited procedures.
                    TITLE V--PATERNITY ESTABLISHMENT

Sec. 501. State laws concerning paternity establishment.
Sec. 502. Outreach for voluntary paternity establishment.
Sec. 503. Penalty for failure to establish paternity promptly.
Sec. 504. Incentives to parents to establish paternity.
       TITLE VI--ESTABLISHMENT AND MODIFICATION OF SUPPORT ORDERS

Sec. 601. National Commission on child support guidelines.
Sec. 602. State laws concerning modification of child support orders.
Sec. 603. Study on use of tax return information for modification of 
                            child support orders.
Sec. 604. Cost-of-living adjustment of child support awards.
                TITLE VII--ENFORCEMENT OF SUPPORT ORDERS

Sec. 701. Revolving loan fund for program improvements to increase 
                            collections.
Sec. 702. Federal income tax refund offset.
Sec. 703. Internal Revenue Service collection of arrearages.
Sec. 704. Authority to collect support from employment-related payments 
                            by United States.
Sec. 705. Motor vehicle liens.
Sec. 706. Voiding of fraudulent transfers.
Sec. 707. State law authorizing suspension of licenses.
Sec. 708. Reporting arrearages to credit bureaus.
Sec. 709. Extended statute of limitation for collection of arrearages.
Sec. 710. Charges for arrearages.
Sec. 711. Visitation issue barred.
Sec. 712. Denial of passports for nonpayment of child support.
Sec. 713. Denial of Federal benefits, loans, and guarantees to certain 
                            persons with large child support 
                            arrearages.
Sec. 714. Seizure of lottery winnings, settlements, payouts, awards, 
                            and bequests, and sale of forfeited 
                            property, to pay child support arrearages.
                       TITLE VIII--DEMONSTRATIONS

Sec. 801. Child support enforcement and assurance demonstrations.
Sec. 802. Social Security Act demonstrations.
                 TITLE IX--ACCESS AND VISITATION GRANTS

Sec. 901. Grants to States for access and visitation programs.
                      TITLE X--EFFECT OF ENACTMENT

Sec. 1001. Effective dates.
Sec. 1002. Severability.
    (b) References.--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.

    TITLE I--ELIGIBILITY AND OTHER MATTERS CONCERNING CHILD SUPPORT 
                      ENFORCEMENT PROGRAM CLIENTS

SEC. 101. COOPERATION REQUIREMENT AND GOOD CAUSE EXCEPTION.

    (a) Child Support Enforcement Requirements.--Section 454 (42 U.S.C. 
654) is amended--
            (1) by striking ``and'' at the end of paragraph (23);
            (2) by striking the period at the end of paragraph (24) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (24) the following new 
        paragraph:
            ``(25) provide that the State agency administering the 
        plan--
                    ``(A) will make the determination specified under 
                paragraph (4), as to whether an individual is 
                cooperating with efforts to establish paternity and 
                secure support (or has good cause not to cooperate with 
                such efforts) for purposes of the requirements of 
                sections 402(a)(26) and 1912;
                    ``(B) will advise individuals, both orally and in 
                writing, of the grounds for good cause exceptions to 
                the requirement to cooperate with such efforts;
                    ``(C) will take the best interests of the child 
                into consideration in making the determination whether 
                such individual has good cause not to cooperate with 
                such efforts;
                    ``(D)(i) will make the initial determination as to 
                whether an individual is cooperating (or has good cause 
                not to cooperate) with such efforts within 10 days 
                after such individual is referred to such State agency 
                by the State agency administering the program under 
                part A of title XIX;
                    ``(ii) will make redeterminations whenever changes 
                in circumstances could reasonably be expected to 
                justify a different determination; and
                    ``(iii) will promptly notify the individual, and 
                the State agencies administering such programs, of each 
                such determination and redetermination;
                    ``(E) with respect to any child born on or after 
                the date 10 months after the date of the enactment of 
this paragraph, will not determine or redetermine the mother (or other 
custodial relative) of such child to be cooperating with efforts to 
establish paternity unless such individual furnishes--
                            ``(i) the name of the putative father (or 
                        fathers); and
                            ``(ii) sufficient additional information to 
                        enable the State agency, if reasonable efforts 
                        were made, to verify the identity of any person 
                        so named, including such information as the 
                        putative father's present address, telephone 
                        number, date of birth, past or present place of 
                        employment, school previously or currently 
                        attended, and names and addresses of parents, 
                        friends, or relatives able to provide location 
                        information, or other information that could 
                        assist in the identification of or enable 
                        service of process on such person; and
                    ``(F)(i) in the case of a custodial parent who was 
                initially determined not to be cooperating with efforts 
                to establish paternity and secure support (without 
                having good cause not to cooperate) and who is later 
                determined to be cooperating or to have good cause not 
                to cooperate, will immediately notify the State 
                agencies administering the programs under part A and 
                title XIX that this eligibility condition has been met; 
                and
                    ``(ii) in the case of a custodial parent was 
                initially determined to be cooperating (or to have good 
                cause not to cooperate), will not later determine such 
                individual not to be cooperating with such efforts (or 
                not to have good cause not to cooperate) until such 
                individual has been afforded an opportunity for a 
                hearing.''.
    (b) AFDC Amendments.--
            (1) Section 402(a)(11) (42 U.S.C. 602(a)(11)) is amended by 
        striking ``furnishing of'' and inserting ``application for''.
            (2) Section 402(a)(26) (42 U.S.C. 602(a)(26)) is amended to 
        read as follows:
            ``(26) provide--
                    ``(A) except as provided in subparagraph (C), that 
                each individual who is an applicant or recipient will, 
                as a condition of eligibility for aid, be required--
                            ``(i) to assign the State any rights to 
                        support from any other person such individual 
                        may have (I) in his own behalf or in behalf of 
                        any other family member for whom the individual 
                        is applying for or receiving aid, and (II) 
                        which have accrued at the time such assignment 
                        is executed;
                            ``(ii) to cooperate with the State (I) in 
                        establishing the paternity of a child born out 
                        of wedlock with respect to whom aid is claimed, 
                        and (II) in obtaining support payments for such 
                        individual and for a child with respect to whom 
                        such aid is claimed;
                            ``(iii) to cooperate with the State in 
                        obtaining any other payments or property due 
                        such individual or such child; and
                            ``(iv) to cooperate with the State in 
                        identifying, and providing information to 
                        assist the State in pursuing, any third party 
                        who may be liable to pay for care and services 
                        available under the State's plan for medical 
                        assistance under title XIX, but the State shall 
                        not be subject to any financial penalty in the 
                        administration or enforcement of this clause as 
                        a result of any monitoring, quality control, or 
                        auditing requirements;
                    ``(B) that the State agency will immediately refer 
                each individual requiring paternity establishment 
                services to the State agency administering the program 
                under part D;
                    ``(C) that an individual will not be required to 
                cooperate with the State, as provided under 
                subparagraph (A), if the individual is found to have 
                good cause for refusing to cooperate, as determined in 
                accordance with standards prescribed by the Secretary, 
                which standards shall take into consideration the best 
                interests of the child on whose behalf aid is claimed--
                            ``(i) to the satisfaction of the State 
                        agency administering the program under part D, 
                        as determined in accordance with section 
                        454(25), with respect to the requirements under 
                        clauses (i) and (ii) of subparagraph (A); and
                            ``(ii) to the satisfaction of the State 
                        agency administering the program under this 
                        part, with respect to the requirements under 
                        clauses (iii) and (iv) of subparagraph (A);
                    ``(D) except as provided in subparagraph (E), that 
                an individual requiring paternity establishment 
                services (other than an individual eligible for 
                emergency assistance as defined in section 406(e)) 
                shall not be eligible for any aid under this part until 
                such individual--
                            ``(i) has furnished to the agency 
                        administering the State plan under part D the 
                        information specified in section 454(25)(E); or
                            ``(ii) has been determined by such agency 
                        to have good cause not to cooperate;
                    ``(E) that the provisions of subparagraph (D) shall 
                not apply--
                            ``(i) if the State agency specified in such 
                        subparagraph has not, within 10 days after such 
                        individual was referred to such agency, 
                        provided the notification required by section 
                        454(25)(D)(iii), until such notification is 
                        received; and
                            ``(ii) if such individual appeals a 
                        determination that the individual lacks good 
                        cause for noncooperation, until after such 
                        determination is affirmed after notice and 
                        opportunity for a hearing;
                    ``(F) that the processing of such individual's 
                application shall not otherwise be delayed or suspended 
                pending a determination as to cooperation pursuant to 
                section 454(4); and
                    ``(G) that, if the relative with whom a child is 
                living is found to be ineligible because of failure to 
                comply with the requirements of clauses (i) and (ii) of 
                subparagraph (A) of this paragraph, any aid for which 
                such child is eligible will be provided in the form of 
                protective payments as described in section 406(b)(2) 
                (without regard to subparagraphs (A) through (D) of 
                such section) unless the State agency, after making 
                reasonable efforts, is unable to locate an appropriate 
                individual to whom such payments can be made.''.
    (c) Medicaid Amendments.--Section 1912(a) (42 U.S.C. 1396k(a)) is 
amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (B)--
                            (i) by inserting ``(except as provided in 
                        paragraph (3))'' after ``to cooperate with the 
                        State''; and
                            (ii) by striking ``, unless'' and all that 
                        follows through ``involved''; and
                    (B) in subparagraph (C), by striking ``unless'' and 
                all that follows and inserting a semicolon; and
            (2) by redesignating paragraph (2) as paragraph (6), and 
        inserting after paragraph (1) the following new paragraphs:
            ``(2) provide that the State agency will immediately refer 
        each individual who is an applicant or recipient requiring 
        paternity establishment services to the State agency 
        administering the program under part D of title IV;
            ``(3) provide that an individual will not be required to 
        cooperate with the State, as provided under paragraph (1), if 
        the individual is found to have good cause for refusing to 
        cooperate, as determined in accordance with standards 
        prescribed by the Secretary, which standards shall take into 
        consideration the best interests of the individuals involved--
                    ``(A) to the satisfaction of the State agency 
                administering the program under part D, as determined 
                in accordance with section 454(25), with respect to the 
                requirements to cooperate with efforts to establish 
                paternity and to obtain support (including medical 
                support) from a parent; and
                    ``(B) to the satisfaction of the State agency 
                administering the program under this title, with 
                respect to other requirements to cooperate under 
                paragraph (1);
            ``(4) except as provided in paragraph (5), provide that an 
        individual requiring paternity establishment services (other 
        than an individual eligible for emergency assistance as defined 
        in section 406(e), or presumptively eligible pursuant to 
        section 1920) shall not be eligible for medical assistance 
        under this title until such individual--
                    ``(i) has furnished to the agency administering the 
                State plan under part D of title IV the information 
                specified in section 454(25)(E); or
                    ``(ii) has been determined by such agency to have 
                good cause not to cooperate; and
            ``(5) provide that the provisions of paragraph (4) shall 
        not apply with respect to an applicant--
                    ``(i) if such agency has not, within 10 days after 
                such individual was referred to such agency, provided 
                the notification required by section 454(25)(D)(iii), 
                until such notification is received); and
                    ``(ii) if such individual appeals a determination 
                that the individual lacks good cause for 
                noncooperation, until after such determination is 
                affirmed after notice and opportunity for a hearing.''.
    (d) Conforming Amendment.--Section 452(a)(10)(F) (42 U.S.C. 
652(a)(10)(F)) is amended by striking ``section 402(a)(26)(B)(ii)'' and 
inserting ``section 402(a)(26)(C)''.
    (e) Effective Date.--The amendments made by this section shall 
apply to applications for aid under part A of title IV of the Social 
Security Act and for medical assistance under title XIX of such Act 
filed in calendar quarters beginning at least 10 months after the date 
of the enactment of this Act (or such earlier quarters as the State may 
select).

SEC. 102. 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 inserting after paragraph (11) 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 income withholding under 
                        section 466(b); and
                            ``(ii) on and after October 1, 1999, except 
                        as provided in subparagraph (C), under each 
                        other order required to be recorded in such 
                        central case registry under this paragraph or 
                        section 454A(e); 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, and may not be renewed, if--
                            ``(I) the party owing support fails to make 
                        a timely payment; or
                            ``(II) 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; 
                                or
                                    ``(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).''; and
            (2) in paragraph (6)--
                    (A) by striking ``(6) provide that'' and all that 
                follows through subparagraph (B) and inserting the 
                following:
            ``(6) provide that--
                    ``(A) services under the State plan shall be made 
                available to nonresidents on the same terms as to 
                residents;
                    ``(B) no fees or costs shall be imposed on any 
                absent or custodial parent or other individual--
                            ``(i) on or after October 1, 1998, for 
                        application for child support enforcement 
                        services under this part; or
                            ``(ii) for inclusion in the central State 
                        registry maintained pursuant to section 
                        454A(e);'';
                    (B) in each of subparagraphs (C) and (D)--
                            (i) by indenting such subparagraph and 
                        aligning its left margin with the left margin 
                        of paragraph (B); and
                            (ii) by striking the final comma and 
                        inserting a semicolon; and
                    (C) by striking subparagraph (E) and inserting the 
                following subparagraphs:
                    ``(E) no other fees or costs may be imposed on the 
                custodial parent; and
                    ``(F) any other fees or costs may be imposed on the 
                noncustodial parent (but fees for child support 
                collection services provided through the central 
                collections unit operated pursuant to section 454B, or 
                for related automated procedures pursuant to section 
                454A(g), may be imposed only if such fees or costs are 
                added to, and not deducted from, amounts collected as 
                child support);''.
    (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. 103. 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) by striking the matter preceding paragraph (2) 
                and inserting the following:
    ``(a) Distribution in Case of a Family Receiving AFDC.--Amounts 
collected under this part during any month as support of a child who is 
receiving aid to families with dependent children under part A (or a 
parent or caretaker relative of such a child) shall (except as 
otherwise specified under subsection (b) in the case of a State 
exercising the option under such subsection) 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--
                    ``(A) the amounts received in a month which 
                represent payments for that month; and
                    ``(B) the amounts received in a month which 
                represent payments for a prior month which were made by 
the absent parent in that prior month;
        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;'';
                    (B) by striking ``and'' at the end of paragraph 
                (3); and
                    (C) by striking paragraph (4) and inserting the 
                following:
            ``(4) from any remainder, amounts which have been assigned 
        pursuant to section 402(a)(26) and are not in excess of 
        unreimbursed past assistance payments made to the family shall 
        be--
                    ``(A) retained by the State; or
                    ``(B) if no such payments by the State are 
                unreimbursed, paid to any other State or States that 
                may have such unreimbursed payments (with appropriate 
                reimbursement of the Federal Government to the extent 
                of its participation in the financing); and
            ``(5) 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 distributing amounts collected as described in subsection (a), a 
State may elect to make the distribution to the family specified in 
subsection (a)(3) before the distribution to the State specified in 
subsection (a)(2).''.
    (c) Distribution to a Family Not Receiving AFDC.--Section 457(c) 
(42 U.S.C. 657(c)) is amended to read as follows:
    ``(c) Distributions 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 aid to families with dependent children 
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 which have not been 
        assigned pursuant to section 402(a)(26) (and, at State option, 
        amounts equal to such arrearages which have been so assigned, 
        but which represent support 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 or States 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).''.
    (d) Distribution to a Child Receiving Assistance Under Part E of 
Title IV.--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) Distributions in Case of a Child Receiving Assistance Under 
Part E of Title IV.--Amounts''.
    (e) Suspension or Cancellation of Debts Upon Marriage of Parents.--
Section 457 (42 U.S.C. 657) is further amended by adding at the end the 
following new subsection:
    ``(e) Suspension or Cancellation of Debts to State Upon Marriage of 
Parents.--
            ``(1) Circumstances requiring suspension or cancellation.--
        In any case in which a State has been assigned rights to 
        support owed with respect to a child who is receiving or has 
        received aid to families with dependent children under part A 
        and--
                    ``(A) the parent owing such support marries (or 
                remarries) the parent with whom such child is living 
                and to whom such support is owed and applies to the 
                State for relief under this subsection;
                    ``(B) the State determines (in accordance with 
                procedures and criteria established by the Secretary) 
                that the marriage is not a sham marriage entered into 
                solely to satisfy this subsection; and
                    ``(C) the combined income of such parents is less 
                than twice the Federal poverty line,
        the State shall afford relief to the parent owing such support 
        in accordance with paragraph (2).
            ``(2) Suspension or cancellation.--In the case of a 
        marriage or remarriage described in paragraph (1), the State 
        shall either--
                    ``(A) cancel all debts owed to the State pursuant 
                to such assignment, or
                    ``(B) suspend collection of such debts for the 
                duration of such marriage, and cancel such debts if 
                such duration extends beyond the end of the period with 
                respect to which support is owed.
            ``(3) Notice required.--The State shall notify custodial 
        parents of children who are receiving aid to families with 
        dependent children under part A of the relief available under 
        this subsection to individuals who marry (or remarry).''.
    (f) 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.
    (g) Conforming Amendments.--Section 402(a)(26)(A)(i), as 
redesignated by section 101(b)(2)(A), is amended--
            (1) by striking ``(I)''; and
            (2) by striking ``, and (II)'' and all that follows before 
        the semicolon and inserting ``for periods during which the 
        individual is receiving aid under this part''.
    (h) 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).
    (i) Effective Date.--The amendments made by this section shall be 
effective with respect to calendar quarters beginning on or after 
October 1, 1998.

SEC. 104. DUE PROCESS RIGHTS.

    (a) In General.--Section 454 (42 U.S.C. 654), as amended by section 
103(h), is amended by inserting after paragraph (11) the following new 
paragraph:
            ``(12) provide for procedures to ensure that--
                    ``(A) individuals who 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 within 14 days after issuance of 
                        such order; and
                    ``(B) individuals receiving services under this 
                part have access to a fair hearing or other formal 
                complaint procedure, meeting standards established by 
                the Secretary, that ensures prompt consideration and 
                resolution of complaints (but the resort to the 
                procedure shall not stay the enforcement of any support 
                order);''.
    (b) Effective Date.--The amendments made by this section shall 
become effective on October 1, 1997.

SEC. 105. PRIVACY SAFEGUARDS.

    (a) State Plan Requirement.--Section 454 (42 U.S.C. 654), as 
amended by section 101, 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 inserting after paragraph (25) the following new 
        paragraph:
            ``(26) 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 individuals, including--
                    ``(A) safeguards against unauthorized use or 
                disclosure of information relating to proceedings or 
                actions to establish paternity, or to establish or 
                enforce support; and
                    ``(B) prohibitions on the release of information on 
                the whereabouts of 1 individual to another person if--
                            ``(i) such person is subject to a 
                        protective order with respect to such 
                        individual, or has been convicted of criminal 
                        assault or abuse against such individual; or
                            ``(ii) a proceeding is pending seeking such 
                        an order or conviction.''.
    (b) Effective Date.--The amendment made by this section shall 
become effective on October 1, 1997.

SEC. 106. REQUIREMENT TO FACILITATE ACCESS TO SERVICES.

    (a) State Plan Requirement.--Section 454(23) (42 U.S.C. 654(23)) is 
amended--
            (1) by striking ``the State will regularly'' and inserting 
        ``the State will--
                    ``(A) regularly'';
            (2) by incorporating the remainder of the text within 
        subparagraph (A); and
            (3) by adding at the end the following new subparagraph:
                    ``(B) have a plan for outreach to parents designed 
                to disseminate information about and increase access to 
                child support enforcement services, including plans 
                responding to needs--
                            ``(i) of working parents to obtain such 
                        services without taking time off work; and
                            ``(ii) of parents with limited proficiency 
                        in English for elimination of language barriers 
                        to use of such services; and''.
    (b) Effective Date.--The amendments made by this section shall 
become effective on October 1, 1997.

              TITLE II--PROGRAM ADMINISTRATION AND FUNDING

SEC. 201. 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) in the case of a State meeting the 
                requirements of subsection (c)--
                            ``(i) for fiscal year 1997, 69 percent,
                            ``(ii) for fiscal year 1998, 72 percent, 
                        and
                            ``(iii) for fiscal year 1999 and succeeding 
                        fiscal years, 75 percent; and
                    ``(B) in the case of any other State, for fiscal 
                year 1997 and succeeding fiscal years, 66 percent.''.
    (b) Maintenance of Effort.--Section 455 (42 U.S.C. 655) is amended 
by inserting after subsection (b) the following new subsection:
    ``(c) For purposes of subsection (a)(2), in order for a State to 
meet the requirements of this subsection--
            ``(1) with respect to a fiscal year after fiscal year 1996, 
        total expenditures for the State program under this part for 
        such fiscal year shall not be less than such total expenditures 
        for fiscal year 1996; and
            ``(2) with respect to each of fiscal years 1997 and 1998, 
        such total expenditures (reduced by the Federal payments to 
        such State under this section and section 458) shall not be 
        less than such total expenditures, so reduced, for fiscal year 
        1996.''.

SEC. 202. PERFORMANCE-BASED INCENTIVES AND PENALTIES.

    (a) Incentive Adjustments to Federal Matching Rate.--Section 458 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, 1997, 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 adjustments 
                        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 as reflected in the 
                                statewide paternity establishment 
                                percentage; 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 does 
                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 of any 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.
    ``(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 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 201, is 
amended--
            (1) by striking the period at the end of subparagraph (B) 
        and inserting a comma; and
            (2) by adding after and below subparagraph (B), 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 requirement.--Section 452(g)(1) (42 
        U.S.C. 652(g)(1)) is amended in the matter preceding 
        subparagraph (A) by inserting ``its overall performance in 
        child support enforcement is satisfactory (as defined in 
        section 458(b) and regulations of the Secretary), and'' after 
        ``1994,''.
            (2) Definition of iv-d paternity establishment 
        percentage.--Section 452(g) (42 U.S.C. 652(g)) is amended--
                    (A) by striking ``paternity establishment 
                percentage'' each place it appears and inserting ``IV-D 
                paternity establishment percentage'';
                    (B) in paragraph (2)(A), in the matter preceding 
                clause (i) by striking ``(or all States, as the case 
                may be)'';
                    (C) in paragraph (2)(A)(i), by striking ``during 
                the fiscal year'';
                    (D) in paragraph (2)(A)(ii)(I), by striking ``as of 
                the end of the fiscal year'' and inserting ``in the 
                fiscal year or, at the option of the State, as of the 
                end of such year'';
                    (E) in paragraph (2)(A)(ii)(II), by striking ``or 
                (E) as of the end of the fiscal year'' and inserting 
                ``in the fiscal year or, at the option of the State, as 
                of the end of such year'';
                    (F) in paragraph (2)(A)(iii)--
                            (i) by striking ``during the fiscal year''; 
                        and
                            (ii) by striking ``and'' at the end; and
                    (G) in the matter following paragraph (2)(A)--
                            (i) by striking ``who were born out of 
                        wedlock during the immediately preceding fiscal 
                        year'' and inserting ``born out of wedlock'';
                            (ii) by striking ``such preceding fiscal 
                        year'' both places it appears and inserting 
                        ``the preceding fiscal year''; and
                            (iii) by striking ``or (E)'' the second 
                        place it appears.
            (3) Conforming amendments.--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 ``IV-D 
                        paternity establishment percentages''; and
                            (ii) by inserting ``and securing support'' 
                        before the period.
    (e) Reduction of Payments Under Part A of Title IV.--
            (1) In general.--Section 403 (42 U.S.C.603) is amended--
                    (A) in subsection (a), by striking ``1958--'' and 
                inserting ``1958 (subject to subsection (h))--'';
                    (B) in subsection (h), by striking ``(h)(1)'' and 
                all that follows through paragraph (2) and inserting 
                the following:
    ``(h)(1) 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), 
                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 
beginning after the end of such succeeding fiscal year, and before 
quarters beginning after 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 1 nor more than 2 percent, or
            ``(B) not less than 2 nor more than 3 percent, if the 
        finding is the second consecutive finding made pursuant to 
        paragraph (1), or
            ``(C) not less than 3 nor more than 5 percent, if the 
        finding is the third or a subsequent consecutive such 
        finding.''; and
                    (C) in subsection (h)(3), by striking ``not in full 
                compliance'' and all that follows and inserting 
                ``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 amendment.--Section 452(a)(4) (42 U.S.C. 
        652(a)(4)) is amended by striking ``, or which is operating 
        under a corrective action plan in accordance with section 
        403(h)(2),''.
    (f) Effective Dates.--
            (1) Incentive adjustments.--
                    (A) In general.--Except to the extent provided in 
                subparagraph (B), the amendments made by subsections 
                (a), (b), and (c) shall become effective October 1, 
                1997.
                    (B) Exception.--Section 458 of the Social Security 
                Act, as in effect prior to the date of the enactment of 
                this section, shall be effective for purposes of 
                incentive payments to States for fiscal years beginning 
                before October 1, 1998.
            (2) Penalties.--
                    (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 which is 1 
                year after the date of the enactment of this Act.

SEC. 203. 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, 
                using such standards and procedures as are required by 
                the Secretary, 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 403(h) 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. 204. 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'' and all that follows 
                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.--For purposes of section 454(16), a 
State agency shall meet the requirements of this section if it has 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 State agency shall ensure that the 
automated system required under this section is capable of performing 
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 (including dismissal from employment) 
        for unauthorized access to, or disclosure or use of, 
        confidential data.''.
            (3) Implementation timetable.--Section 454(24) (42 U.S.C. 
        654(24)), as amended by section 105(a)(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, 1996, 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 this paragraph (but this provision shall 
                not be construed to alter earlier deadlines specified 
                for elements of such system);''.
    (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 subparagraph (1)(B) as are reasonable and necessary for a system 
meeting the requirements specified in section 454(16), or meeting such 
requirements without regard to subparagraph (D) thereof.
    ``(B)(i) Subject to clause (iii), 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 subparagraph (1)(B) as are for a system meeting the 
requirements specified in section 454(16) and 454A.
    ``(ii) The percentage specified in this clause 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).
    ``(iii) Notwithstanding any other provision of this section, the 
total amount payable by the Secretary with respect to expenditures 
during fiscal years specified in clause (i) shall not exceed 
$260,000,000--
            ``(I) to be distributed among the States and to be made 
        available at such time or times over the 5-year period as is 
        provided in regulations issued by the Secretary, taking into 
        account the relative size of State caseloads and the level of 
        automation needed to meet the requirements of this part; and
            ``(II) to be made to a State at such times and in such a 
        manner as provided in the advance planning document approved 
        under section 452(d).''.
    (c) Conforming Amendment.--Section 123(c) of the Family Support Act 
of 1988 (102 Stat. 2352; Public Law 100-485) is repealed.
    (d) Additional Provisions.--For additional provisions of section 
454A, as added by subsection (a), see sections 301, 302, and 402 of 
this Act.

SEC. 205. DIRECTOR OF CSE PROGRAM; TRAINING AND STAFFING.

    (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) Training Program.--
            (1) Secretarial responsibilities.--Section 452(a)(7) (42 
        U.S.C. 652(a)(7)) is amended by striking ``paternity;'' and 
        inserting ``paternity, through activities including--
                    ``(A) development of a core curriculum and training 
                standards to be used by States in the development of 
                State-specific training guides; and
                    ``(B) development of a national training program 
                for directors of State programs under this part;''.
            (2) Training fee authority.--Section 452 (42 U.S.C. 652) is 
        amended by adding at the end the following new subsection:
    ``(j) The Secretary is authorized, subject to appropriations, to 
charge fees for training programs for directors of State programs under 
subsection (a)(7). Such fees shall be credited to the appropriation for 
this program and used to pay costs of such training programs.''.
    (c) State Plan Requirement.--Section 454 (42 U.S.C. 654), as 
amended by sections 102 and 104, 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 will develop and 
        implement a training program which--
                    ``(A) is consistent with the national training 
                standards and core curriculum developed by the 
                Secretary pursuant to section 452(a)(7), and uses a 
                State-specific training guide incorporating such core 
                curriculum;
                    ``(B) provides for initial and ongoing training of 
                all staff (including State and local agency staff and 
                contractors) of the program under this part, including 
                annual training for case workers and special training 
                when significant changes are made in statutes, 
                regulations, policies, or procedures; and
                    ``(C) may provide (subject to approval by the 
                Secretary) for appropriate training of other persons 
                with responsibilities relating to the implementation of 
                the State program under this part (including staff 
                administering programs under part A, part E, title XIX, 
                and other related and complementary programs; judges 
                and other staff of judicial and administrative 
                tribunals; law enforcement personnel; staff of social 
                services organizations; and the private bar).''.
    (d) Staffing Studies.--
            (1) Scope of study.--The Secretary of Health and Human 
        Services (in this subsection referred to as the ``Secretary'') 
        shall, in consultation with directors of State child support 
        enforcement programs under part D of title IV of the Social 
        Security Act, conduct studies of the staffing of each such 
        program. Such studies shall include--
                    (A) 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) a review of the ratio of caseworkers to cases 
                and an assessment of the impact of this ratio on the 
                effectiveness of the program.
            (2) Frequency of studies.--The Secretary shall complete the 
        first staffing study required under paragraph (1) by October 1, 
        1997, and may conduct additional studies subsequently at 
        appropriate intervals.
            (3) State reports.--The Secretary shall, as a result of the 
        studies conducted under this subsection, and in consultation 
        with directors of each State child support enforcement program 
        under part D of title IV of the Social Security Act, issue a 
        report for each State containing recommendations addressing the 
        issues described in paragraph (1).
            (4) 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. 206. FUNDING FOR SECRETARIAL ASSISTANCE TO STATE PROGRAMS.

    Section 452 (42 U.S.C. 652), as amended by section 205(b)(2), 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 and the National Child Support Information 
        Clearinghouse under section 453A, 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. 207. 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); and
                    (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 all 
        that follows 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 new subsections:
    ``(a) The Secretary shall collect and maintain, on a fiscal year 
basis, up-to-date statistics, by State, with respect to services to 
establish paternity and services to establish child support 
obligations, the data specified in subsection (b), separately stated, 
in the case of each such service, with respect to--
            ``(1) families (or dependent children) receiving aid under 
        plans approved under part A (or E); and
            ``(2) families not receiving such aid.
    ``(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 such 
        service 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.

SEC. 208. COORDINATION WITH INCOME AND ELIGIBILITY VERIFICATION SYSTEM.

    (a) Use of IEVS Information Furnished to CSE Agency.--Section 
1137(a)(4) (42 U.S.C. 1320b-7(a)(4)) is amended--
            (1) in subparagraph (B), by striking ``to assist in the 
        child support program under part D of title IV of this Act'' 
        and inserting ``to Federal and State agencies administering the 
        child support program under part D of title IV to assist in 
        carrying out any responsibilities under such part''; and
            (2) in subparagraph (C), by inserting ``by the State 
        agencies administering the programs listed in subsection (b)'' 
        after ``the use of such information''.
    (b) Availability of CSE Information to IEVS Agencies.--Section 
1137(a) (42 U.S.C. 1320b-7(a)) is amended--
            (1) by redesignating paragraphs (5) through (7) as 
        paragraphs (6) through (8), respectively, and
            (2) by inserting after paragraph (4) the following new 
        paragraph:
            ``(5) the State agency administering the child support 
        enforcement program under part D of title IV shall make 
        available to the State agencies administering the programs 
        listed in subsection (b) information in the central State case 
        registry operated pursuant to section 454A.''.

                  TITLE III--LOCATE AND CASE TRACKING

SEC. 301. CENTRAL STATE CASE REGISTRY.

    Section 454A, as added by section 204, 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 be capable of performing 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 arrearages, interest or late 
                payment penalties, and fees);
                    ``(B) the date on 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); and
                    ``(D) the distribution of such amounts collected.
            ``(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.--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, in order to obtain (or 
provide) information necessary to enable the State agency (or Secretary 
or other State or Federal agencies) to carry out responsibilities under 
this part. Data matching activities of the State agency shall include 
at least the following:
            ``(1) National child support information clearinghouse.--
        Furnishing to the National Child Support Information 
        Clearinghouse established under section 453A (and updating as 
        necessary, with information including notice of expiration of 
        orders) minimal information specified by the Secretary on each 
        child support case in the central case registry.
            ``(2) Federal parent locator service.--Exchanging data with 
        the Federal Parent Locator Service for the purposes specified 
        in section 453.
            ``(3) AFDC, foster care, and medicaid agencies.--Exchanging 
        data with State agencies (of the State and of other States) 
        administering the programs under parts A and E and title XIX, 
        as necessary for the performance of State agency 
        responsibilities under this part and under such programs.
            ``(4) Intrastate 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. 302. CENTRALIZED COLLECTION AND DISBURSEMENT OF SUPPORT PAYMENTS.

    (a) State Plan Requirement.--Section 454 (42 U.S.C. 654), as 
amended by sections 101, 105, and 205, is amended--
            (1) by striking ``and'' at the end of paragraph (26);
            (2) by striking the period at the end of paragraph (27) and 
        inserting ``; and''; and
            (3) by adding after paragraph (27) the following new 
        paragraph:
            ``(28) 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 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(28), 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 
204(a)(2) and as amended by section 301, 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 
                National Directory of New Hires 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. 303. AMENDMENTS CONCERNING INCOME WITHHOLDING.

    (a) Mandatory Income Withholding.--
            (1) From income.--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 income 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 
                        such procedures and timetables as may be 
                        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) by striking subparagraph (D) of paragraph (6) 
                and inserting the following new subparagraph:
            ``(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. 304. LOCATOR INFORMATION FROM INTERSTATE NETWORKS AND LABOR 
              UNIONS.

    Section 466(a) (42 U.S.C. 666(a)), as amended by section 303, is 
amended by inserting after paragraph (7) the following new paragraph:
            ``(8)(A) 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--
                    ``(i) for purposes relating to the use of motor 
                vehicles; or
                    ``(ii) for providing information for law 
                enforcement purposes (if 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 
        sections 453 and 453A) have access to information in such 
        system or network to the same extent as any other user of such 
        system or network.
            ``(B) Procedures under which labor unions, and hiring halls 
        of labor unions, must furnish to the State agency, upon 
        request, with respect to any union member against whom 
        paternity or a support obligation is sought to be established 
        or enforced, such information as the union or hiring hall may 
        have on such member's residential address and telephone number, 
        employer's name, address, and telephone number, and income and 
        medical insurance benefits.''.

SEC. 305. NATIONAL CHILD SUPPORT INFORMATION CLEARINGHOUSE.

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

           ``national child support information clearinghouse

    ``Sec. 453A. (a) Establishment.--
            ``(1) In general.--In order to assist States in 
        administering their State plans under this part and parts A and 
        F, and for the other purposes specified in this section, the 
        Secretary shall establish and operate a National Child Support 
        Information Clearinghouse, performing the functions and meeting 
        the requirements specified in this section, and containing the 
        registries specified in paragraph (2).
            ``(2) Registries specified.--The registries specified in 
        this paragraph are--
                    ``(A) the National Child Support Registry 
                established pursuant to subsection (b);
                    ``(B) the National Directory of New Hires 
                established pursuant to subsection (c); and
                    ``(C) the Federal Parent Locator Service 
                established pursuant to section 453.
            ``(3) Use of term.--For purposes of this section, 
        references to registries maintained under this section shall be 
        considered to include the National Directory of New Hires and 
        the Federal Parent Locator Service.
    ``(b) National Child Support Registry.--
            ``(1) In general.--The Secretary shall establish by October 
        1, 1998, and maintain thereafter, an automated registry, to be 
        known as the National Child Support Registry, containing 
        minimal information (in accordance with 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 case information required to 
        be furnished pursuant to this subsection, 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.
    ``(c) National Directory of New Hires.--
            ``(1) In general.--The Secretary shall establish by October 
        1, 1998, and maintain thereafter, an automated directory, to be 
        known as the National 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 the date specified in 
                subparagraph (B), a report containing the name, date of 
                birth, and social security number of each employee 
                hired on or after October 1, 1998, and the employer 
                identification number of the employer.
                    ``(B) Reporting timetable.--Reports required under 
                subparagraph (A) shall be made not later than--
                            ``(i) in the case of an employer that 
                        elects to make such reports electronically or 
                        through comparable automated methods, 10 
                        business days following the end of the payroll 
                        period with respect to all employees hired 
                        during such period (but the employer shall not 
                        be required to make more than 1 report each 
                        during the first and last halves of each 
                        month); and
                            ``(ii) in the case of any other employer, 
                        10 business days after the date the employee is 
                        hired.
                    ``(C) 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 in accordance with subparagraph 
                        (B);
                            ``(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.
                    ``(D) Employee defined.--For purposes of this 
                paragraph--
                            ``(i) the term `employee'--
                                    ``(I) means (subject to subclause 
                                (II)) any individual subject to the 
                                requirement of section 3402(f)(2) of 
                                the Internal Revenue Code of 1986; and
                                    ``(II) does not include an employee 
                                of a Federal or State agency performing 
                                law enforcement functions, or of a 
                                Federal agency performing intelligence 
                                or counterintelligence functions, if 
                                the head of such agency has determined 
                                that reporting pursuant to this 
                                paragraph with respect to such employee 
                                could endanger the safety of the 
                                employee or compromise an ongoing 
                                investigation or intelligence mission; 
                                and
                            ``(ii) the term `employer' means any 
                        employer (as defined in section 3401(c) of such 
                        Code) subject to the requirement of section 
                        3402(a) of such Code.
                    ``(E) 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.
                    ``(F) Civil money penalty on noncomplying 
                employers.--
                            ``(i) In general.--Any employer that 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 
                administering a State unemployment compensation law 
                approved by the Secretary of Labor under the Federal 
                Unemployment Tax Act shall furnish to the Secretary of 
                Health and Human Services, in accordance with 
                subparagraph (B), extracts of the reports to the 
                Secretary of Labor concerning the wages and 
                unemployment compensation paid to individuals required 
                under section 303(a)(6).
                    ``(B) Manner of compliance.--The extracts required 
                under subparagraph (A) shall be furnished to the 
                Secretary of Health and Human Services on a quarterly 
                basis (or on a more frequent basis as such reports are 
                furnished to the Secretary of Labor), 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 of Health 
                and Human Services in regulations.
    ``(d) 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 in 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 National Directory of New 
                Hires against data in the National Child Support 
                Registry not less often than every 2 working days; and
                    ``(B) report information obtained from such a match 
                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.--
                    ``(A) For title iv program purposes.--The Secretary 
                shall--
                            ``(i) perform matches of data in each 
                        registry maintained under this section against 
                        data in each other such registry (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 and F; and
                            ``(ii) 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.
                    ``(B) For income eligibility verification system.--
                The Secretary shall disclose data in the registries 
                maintained under this section to the programs specified 
                in section 1137(b), for use for any purpose related to 
                the administration of such programs permitted under 
                such section 1137.
                    ``(C) To social security administration.--The 
                Secretary shall disclose data in the registries 
                maintained under this section to the Social Security 
                Administration--
                            ``(i) for the purpose of determining the 
                        accuracy of payments under the supplemental 
                        security income program under title XVI; or
                            ``(ii) for use in connection with benefits 
                        under title II.
            ``(4) Other disclosures of new hire data.--The Secretary 
        shall disclose data in the National Directory of New Hires 
        under subsection (c)--
                    ``(A) to the Secretary of the Treasury for purposes 
                directly connected with--
                            ``(i) the administration of the earned 
                        income tax credit under section 32 of the 
                        Internal Revenue Code of 1986, or the advance 
                        payment of such credit under section 3507 of 
                        such Code; or
                            ``(ii) verification of a claim with respect 
                        to employment in an individual tax return; and
                    ``(B) to State agencies operating employment 
                security and workers compensation programs, for the 
                purpose of assisting such agencies to determine the 
                allowability of claims for benefits under such 
                programs.
            ``(5) Disclosures for research purposes.--The Secretary is 
        authorized to disclose data in registries maintained under this 
        section for research purposes found by the Secretary to be 
        likely to contribute to achieving the purposes of this part or 
        part A or F, but without personal identifiers.
    ``(e) Fees.--
            ``(1) For ssa verification.--The Secretary shall reimburse 
        the Commissioner of Social Security, at a rate negotiated 
        between the Secretary and the Commissioner, the costs incurred 
        by the Commissioner in performing the verification services 
        specified in subsection (d).
            ``(2) For information from sesas.--The Secretary shall 
        reimburse costs incurred by State employment security agencies 
        in furnishing data as required by subsection (c)(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).
    ``(f) Restriction on Disclosure and Use.--Data in registries 
maintained pursuant to this section, and information resulting from 
matches using data maintained in such registries, shall not be used or 
disclosed except as specifically provided in this section.
    ``(g) Retention of Data.--Data in registries maintained pursuant to 
this title, 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.
    ``(h) 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 system; and
            ``(2) restrict access to confidential information in the 
        registries to authorized persons, and restrict use of such 
        information to authorized purposes.
    ``(i) Limit on Liability.--The Secretary shall not be liable to 
either a State or an individual for inaccurate information provided to 
a registry maintained under this section 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) (42 U.S.C. 654(8)) is amended--
                    (A) by striking ``, and'' at the end of 
                subparagraph (A) and inserting a semicolon; and
                    (B) by striking subparagraph (B) and inserting the 
                following the new subparagraphs:
                    ``(B) the Federal Parent Locator Service 
                established under section 453; and
                    ``(C) the National Child Support Information 
                Clearinghouse established under section 453A;''.
            (2) To federal unemployment tax act.--Section 3304(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 
                National Directory of New Hires established under 
                section 453A(b) of the Social Security Act, and''.
            (3) To state grant program under title iii of the social 
        security act.--Section 303(a) (42 U.S.C. 503(a)) is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (8);
                    (B) by striking the period at the end of paragraph 
                (9) and inserting ``; and''; and
                    (C) by adding after paragraph (9) the following new 
                paragraph:
            ``(10) The making of quarterly electronic reports, at such 
        dates, in such format, and containing such information, as 
        required by the Secretary under section 453A(c)(3), and 
        compliance with such provisions as such Secretary may find 
        necessary to ensure the correctness and verification of such 
        reports.''.

SEC. 306. EXPANDED LOCATE AUTHORITY.

    (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 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 inserting ``Federal,'' before ``State 
        or local''.
    (e) Technical Amendments.--
            (1) Sections 452(a)(9), 453(a), 453(b), 463(a), and 463(e) 
        (42 U.S.C. 652(a)(9), 653(a), 653(b), 663(a), and 663(e)) are 
        each amended by inserting ``Federal'' before ``Parent'' each 
        place it appears.
            (2) Section 453 (42 U.S.C. 653) is amended in the heading 
        by inserting ``federal'' before ``parent''.

SEC. 307. STUDIES AND DEMONSTRATIONS CONCERNING LOCATOR ACTIVITIES.

    (a) Studies.--The Secretary of Health and Human Services (hereafter 
in this section referred to as the ``Secretary'') shall study, and 
report and make recommendations to the Congress concerning--
            (1) whether access to information available through the 
        Federal Parent Locator Service under section 453 of the Social 
        Security Act should be afforded to noncustodial parents seeking 
        to locate their children and, if so, whether custodial parents 
        at risk of harm by such noncustodial parents could be 
        adequately protected; and
            (2) the feasibility, implications, and costs of 
        establishing and operating electronic data interchanges between 
        such Service and major consumer credit reporting bureaus.
    (b) Demonstrations.--The Secretary shall make grants to States, 
from funds available under section 452(j) of the Social Security Act, 
for demonstrations designed to test the utility of automated data 
exchanges with State data bases that have the potential to improve the 
States' effectiveness in locating individuals and resources for 
purposes of establishing paternity and establishing and enforcing 
support obligations.

SEC. 308. USE OF SOCIAL SECURITY NUMBERS.

    (a) State Law Requirement.--Section 466(a) (42 U.S.C. 666(a)), as 
amended by section 102(a), is amended by inserting after paragraph (12) 
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.''.

          TITLE IV--STREAMLINING AND UNIFORMITY OF PROCEDURES

SEC. 401. ADOPTION OF UNIFORM STATE LAWS.

    (a) In General.--Section 466(a) (42 U.S.C. 666(a)), as amended by 
sections 102(a) and 308(a), is amended by inserting after paragraph 
(13) 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, 1996, 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 
                1 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) 
        shall provide that, in the case where a child meets the 
        criteria for residence in the State, a tribunal of the State 
        having jurisdiction over such child has jurisdiction over both 
        parents of such child, if parentage has been legally 
        established or acknowledged, or may be presumed under the laws 
        of the State.
            ``(D) For purposes of the State law adopted pursuant to 
        subparagraph (A), section 611(a)(1) of the Uniform Interstate 
        Family Support Act shall be amended to read as follows:
            ```(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'.
            ``(E) The State law adopted pursuant to subparagraph (A) 
        shall allow parties, by agreement, to permit a State that 
        issued an order to retain jurisdiction which the State would 
        otherwise lose under the provisions of such law.
            ``(F) 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.
            ``(G) 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.''.
    (b) Expedited Appeal of Constitutional Challenge.--
            (1) In general.--An appeal may be taken directly to the 
        Supreme Court of the United States from any interlocutory or 
        final judgment, decree, or order issued by a United States 
        district court ruling upon the constitutionality of section 
        466(a)(14)(C) of the Social Security Act, as added by 
        subsection (a).
            (2) Expedited procedure.--The Supreme Court of the United 
        States shall, if it has not previously ruled on the question, 
        accept jurisdiction over, and advance on the docket, and 
        expedite to the greatest extent possible, an appeal described 
        under paragraph (1). All cases raising such question shall be 
        consolidated to the maximum extent permissible under applicable 
        rules of civil procedure.
    (c) Conforming Amendments to Full Faith and Credit Requirements.--
Section 1738B of title 28, United States Code, is amended to read as 
follows:
``Sec. 1738B. Full faith and credit for child support orders
    ``(a) In General.--The appropriate authorities of each State shall 
enforce a child support order by a court of another State according to 
its terms, if such other State's order is made--
            ``(1) pursuant to the procedures specified in section 
        466(a)(14) of the Social Security Act (42 U.S.C. 666(a)(14); or
            ``(2) in a case in which such other State has not adopted 
        such procedures, pursuant to procedures consistent with section 
        207 of the Uniform Interstate Family Support Act, as approved 
        by the National Conference of Commissioners on Uniform State 
        Laws in August 1992.
    ``(b) Definition.--For purposes of this section--
            ``(1) `court' means a court or administrative agency of a 
        State that is authorized by State law to establish, modify, or 
        enforce a child support order; and
            ``(2) `State' means a State of the United States, the 
        District of Columbia, the Commonwealth of Puerto Rico, the 
        territories and possessions of the United States, and includes 
        an Indian tribe, at its option.''.

SEC. 402. STATE LAWS PROVIDING EXPEDITED PROCEDURES.

    (a) State Law Requirements.--Section 466 (42 U.S.C. 666), as 
amended by section 303(a)(3), is amended--
            (1) by striking paragraph (2) of subsection (a) and 
        inserting the following new paragraph:
            ``(2) 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 (but subject to 
        the substantive and procedural rules, including due process 
        safeguards required under paragraph (2)), to take the following 
        actions relating to establishment or enforcement of orders:
                    ``(A) To establish the amount of support awards in 
                all cases in which services are being provided under 
                this part, and to modify the amount of such awards 
                under all orders included in the central case registry 
                established under section 454A(e) (including orders 
                entered by a court), in accordance with the guidelines 
                established under section 467.
                    ``(B) To order genetic testing for the purpose of 
                paternity establishment as provided in section 
                466(a)(5).
                    ``(C) 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 or modifying a support 
                        obligation, in the case of a parent (or other 
                        obligor or obligee) who fails to respond to 
                        notice to appear at a proceeding for such 
                        purpose.
                    ``(D) 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.
                    ``(E) To obtain 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 other State and local 
                        government agencies, including--
                                    ``(I) records of marriage, birth, 
                                and divorce, and other vital 
                                statistics;
                                    ``(II) State and local tax and 
                                revenue records with respect to 
                                residence address, employer, income and 
                                assets, and other necessary 
                                information;
                                    ``(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 State 
                                secretary of state;
                                    ``(VIII) records of the motor 
                                vehicle department; and
                                    ``(IX) 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.
                    ``(F) To order income withholding in accordance 
                with subsections (a)(1) and (b).
                    ``(G) In cases in which 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.
                    ``(H) 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.
                    ``(I) 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).
                    ``(J) To suspend drivers' licenses of individuals 
                owing past-due support, in accordance with subsection 
                (a)(16).
            ``(2) The expedited procedures required under subsection 
        (a)(2) shall include the following rules and authority, 
        applicable with respect to all proceedings to established 
        paternity or to establish, modify, or enforce support orders:
                    ``(A) Procedures under which--
                            ``(i) subject to privacy safeguards, the 
                        parties to any paternity or child support 
                        proceedings are required 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 is 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 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.
                    ``(C) Procedures affording due process safeguards--
                            ``(i) including (as appropriate) 
                        requirements for notice, opportunity to contest 
                        the action, and opportunity for an appeal on 
                        the record to an independent administrative or 
                        judicial tribunal; and
                            ``(ii) under which the provisions of the 
                        Soldiers' and Sailors' Civil Relief Act apply 
                        to any proceeding to establish paternity, to 
                        establish a child support obligation, or to 
                        modify the financial obligation under a child 
                        support order.''.
    (c) 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).''.
    (d) Automation of State Agency Functions.--Section 454A, as added 
by section 204(a)(2) and amended by sections 301 and 302(c), is further 
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 the expedited administrative procedures required 
under section 466(c).''.
    (e) Conforming Amendment to Bankruptcy Code.--Section 362(b)(2)(A) 
of title 11, United States Code, is amended in the matter preceding 
clause (i), by inserting ``judicial or administrative'' before 
``proceeding''.

                    TITLE V--PATERNITY ESTABLISHMENT

SEC. 501. 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 (A)--
                    (A) by indenting clause (ii) an additional unit of 
                indentation from the left margin; and
                    (B) by adding after and below clause (ii) the 
                following new clause:
            ``(iii) Procedures which permit the initiation of 
        proceedings to establish paternity before the birth of the 
        child concerned.'';
            (2) 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 by such party setting forth facts 
                establishing a reasonable possibility of the requisite 
                sexual contact''; and
                    (C) by inserting after and below 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 costs of such tests, subject to the 
                right of the State to elect recoupment of the costs 
                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.'';
            (3) by striking subparagraphs (C), (D), (E), and (F) and 
        inserting the following new subparagraphs:
            ``(C) Procedures for a simple civil process for voluntarily 
        acknowledging paternity under which--
                    ``(i) the benefits, rights and responsibilities of 
                acknowledging paternity are explained to unwed parents;
                    ``(ii) due process safeguards are afforded; and
                    ``(iii) hospitals and other health care facilities 
                providing inpatient or outpatient maternity and 
                pediatric services are required, as a condition of 
                participation in the State program under title XIX--
                            ``(I) to explain to unwed parents the 
                        matters specified in clause (i);
                            ``(II) to make available the voluntary 
                        acknowledgment procedure required under this 
                        subparagraph; and
                            ``(III) in the case of hospitals providing 
                        maternity services, to have facilities for 
                        obtaining blood or other genetic samples from 
                        the mother, putative father, and child for 
                        genetic testing; to inform the mother and 
                        putative father of the availability of such 
                        testing (at their expense); and to obtain such 
                        samples upon request of both such individuals.
            ``(D) Procedures under which--
                    ``(i) a voluntary acknowledgment of paternity 
                creates, at State option, either--
                            ``(I) a conclusive presumption of 
                        paternity, or
                            ``(II) a rebuttable presumption which 
                        becomes a conclusive presumption within 1 year, 
                        unless rebutted or invalidated by an 
                        intervening determination which reaches a 
                        contrary conclusion;
                    ``(ii) at State option and notwithstanding clause 
                (i), upon the request of a party, a determination of 
                paternity based on an acknowledgment may be vacated on 
                the basis of new evidence, the existence of fraud, or 
                the best interests of the child; and
                    ``(iii) a voluntary acknowledgment of paternity is 
                admissible as evidence of paternity, and as a basis for 
                seeking a support order, without requiring any further 
                proceedings to establish paternity.
            ``(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
            (4) 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 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) 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 if 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) Technical Amendment.--Section 468 (42 U.S.C. 668) is amended by 
striking ``a simple civil process for voluntarily acknowledging 
paternity and''.

SEC. 502. OUTREACH FOR VOLUNTARY PATERNITY ESTABLISHMENT.

    (a) State Plan Requirement.--Section 454(23) (42 U.S.C. 654(23)), 
as amended by section 106, is amended by adding at the end the 
following new subparagraph:
            ``(C) 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);
                    ``(iii) include, with respect to each child 
                discharged from a hospital after birth for whom 
                paternity or child support has not been established, 
                reasonable follow-up efforts, 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.

SEC. 503. PENALTY FOR FAILURE TO ESTABLISH PATERNITY PROMPTLY.

    Section 403 (42 U.S.C. 603) is amended--
            (1) in subsection (a), as amended by section 202(e), by 
        striking ``subsection (h)'' and inserting ``subsections (h) and 
        (i)''; and
            (2) by inserting after subsection (h) the following new 
        subsection:
    ``(i) Penalty for Failure To Establish Paternity Promptly.--
            ``(1) In general.--The amounts otherwise payable to a State 
        under subsection (a) for any calendar quarter beginning 10 
        months or more after the date of the enactment of this 
        subsection shall be reduced by an amount, determined pursuant 
        to regulations in accordance with paragraph (2), for certain 
        children for whom paternity has not been established.
            ``(2) Reduction formula.--The Secretary shall promulgate 
        regulations specifying the formula for the reduction required 
        under this subsection, which formula shall provide for a 
        reduction in Federal matching payments to a State under this 
        section by an amount equal to the product of--
                    ``(A) the number (after allowing for the tolerance 
                level established under paragraph (3)) of children born 
on or after the date 10 months after the date of the enactment of this 
subsection--
                            ``(i) who are receiving aid under the State 
                        plan under part A;
                            ``(ii) whose custodial relatives have, 
                        throughout the preceding 12-month period, 
                        complied with the cooperation requirements 
                        specified in section 454(25)(D); and
                            ``(iii) for whom paternity has not been 
                        established;
                    ``(B) the average monthly assistance payment under 
                the State plan approved under this part; and
                    ``(C) one-half of the Federal matching rate 
                applicable to such assistance payment.
            ``(3) Tolerance level.--
                    ``(A) In general.--For purposes of paragraph 
                (2)(A), the tolerance level shall not be higher than 
                the applicable percentage of children in the State 
                described in paragraph (1), and may decrease over time 
                to make allowance for a State's inability to establish 
                paternity in all cases.
                    ``(B) Applicable percentage.--For purposes of 
                subparagraph (A), the applicable percentage is 25 
                percent for fiscal years 1998 and 1999, 20 percent for 
                fiscal years 2000 and 2001, 15 percent for fiscal years 
                2002 and 2003, and 10 percent for fiscal year 2004 and 
                each succeeding fiscal year.''.

SEC. 504. INCENTIVES TO PARENTS TO ESTABLISH PATERNITY.

    (a) Optional State Activities.--Section 455 (42 U.S.C. 655) is 
amended by adding at the end the following new subsection:
    ``(f)(1) The Secretary, in accordance with regulations, may approve 
proposals by States to amend State plans under this part to provide for 
incentive payments to families to encourage paternity establishment.
    ``(2) Federal financial participation shall be available in 
accordance with subsection (a) for expenditures by a State pursuant to 
a plan amendment approved under paragraph (1).''.
    (b) Demonstrations.--
            (1) Projects authorized.--The Secretary of Health and Human 
        Services shall authorize up to 3 States to conduct 
        demonstrations providing financial incentives to families for 
        establishment of paternity.
            (2) Federal funding.--
                    (A) In general.--Subject to subparagraph (B), a 
                State participating in a demonstration under this 
                subsection shall be entitled to Federal payments 
                pursuant to section 455(f) of the Social Security Act 
                for 90 percent of the payments to families under such 
                demonstration.
                    (B) Funding limitation.--Total Federal expenditures 
                for demonstrations under this subsection shall not 
                exceed $1,000,000.

       TITLE VI--ESTABLISHMENT AND MODIFICATION OF SUPPORT ORDERS

SEC. 601. NATIONAL COMMISSION ON CHILD SUPPORT GUIDELINES.

    (a) Establishment.--The Secretary is authorized to establish, in 
accordance with this section, a commission to be known as the 
``National Commission on Child Support Guidelines'' (hereafter in this 
section referred to as the ``Commission'').
    (b) General Duties.--The Commission shall consider whether a 
national child support guideline is advisable and, if it so determines, 
shall develop and propose for congressional consideration such a 
guideline (or parameters for State guidelines), reflecting the 
Commission's study of various guideline models and its conclusions 
concerning their strengths and deficiencies, and specifically 
reflecting consideration of the need for simplicity and ease of 
application of guidelines, and of the matters enumerated in subsection 
(c).
    (c) Matters for Consideration by the Commission.--In making the 
recommendations concerning guidelines required under subsection (b), 
the Commission shall consider--
            (1) the adequacy of State child support guidelines 
        established pursuant to section 467 of the Social Security Act;
            (2) matters generally applicable to all support orders, 
        including--
                    (A) the feasibility of adopting uniform terms in 
                all child support orders;
                    (B) how to define income and under what 
                circumstances income should be imputed; and
                    (C) tax treatment of child support payments;
            (3) the appropriate treatment of cases in which either or 
        both parents have financial obligations to more than 1 family, 
        including the effect (if any) to be given to--
                    (A) the income of either parent's spouse; and
                    (B) the financial responsibilities of either parent 
                for other children or stepchildren;
            (4) the appropriate treatment of expenses for child care 
        (including care of the children of either parent, and work-
        related or job-training-related child care);
            (5) the appropriate treatment of expenses for health care 
        (including uninsured health care) and other extraordinary 
        expenses for children with special needs;
            (6) the appropriate duration of support by 1 or both 
        parents, including--
                    (A) support (including shared support) for post-
                secondary or vocational education; and
                    (B) support for disabled adult children; and
            (7) whether, or to what extent, support levels should be 
        adjusted in cases where custody is shared or where the 
        noncustodial parent has extended visitation rights.
    (d) Membership.--
            (1) Number; appointment.--
                    (A) In general.--The Commission shall be composed 
                of 12 individuals appointed not later than March 1, 
                1996, 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 the 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 the 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 
        the life of the Commission. A vacancy in the Commission shall 
        be filled in the manner in which the original appointment was 
        made.
    (e) 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, except that references in such section to the Office of 
Technology Assessment shall be disregarded.
    (f) Report.--Not later than July 1, 1998, the Commission shall 
report to the President and the Congress on the results of the studies 
required under this section.
    (g) Termination.--The Commission shall terminate 6 months after 
submission of the report required under subsection (f).
    (h) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $1,000,000 for each of fiscal 
years 1996 and 1997, to remain available until expended.

SEC. 602. STATE LAWS CONCERNING MODIFICATION OF CHILD SUPPORT ORDERS.

    (a) State Law Requirements.--Section 466(a)(10) (42 U.S.C. 
666(a)(10)) is amended--
            (1) by redesignating subparagraph (C) as subparagraph (E) 
        and by inserting after subparagraph (B) the following new 
        subparagraphs:
            ``(C)(i) Procedures to ensure that, beginning October 1, 
        2000 (or such earlier date as the State may select), the State 
        agency (or, at the option of the State, the local agency) 
        reviews and adjusts, in accordance with guidelines established 
        pursuant to section 467(a), judicial and administrative child 
        support orders included in the State case registry established 
        pursuant to section 454A(d), under which (subject to clauses 
        (ii) and (iii) the order--
                    ``(I) is to be reviewed not later than 36 months 
                after the establishment of the order or the most recent 
                adjustment of (or determination not to adjust) such 
                order; and
                    ``(II) at the option of the State, may not be 
                reviewed during a minimum period established by the 
                State following the establishment or most recent review 
                of the order.
            ``(ii) The requirement of clause (i)(I) shall not apply in 
        any case in which--
                    ``(I) the State has determined, in accordance with 
                regulations of the Secretary, that such a review would 
                not be in the best interests of the child;
                    ``(II) both parents have been informed of the right 
                to a review and have been provided a copy of the 
                applicable child support guidelines and have declined a 
                modification in writing; or
                    ``(III) both parents have been informed of the 
                modified support amount that would be imposed under the 
                guidelines and have declined such modification in 
                writing.
            ``(iii) The State shall provide for review of a child 
        support order upon the request of either parent, 
        notwithstanding the requirement of clause (i)(II), whenever, 
        subsequent to the establishment or most recent review--
                    ``(I) either parent's income has changed by more 
                than 20 percent, or
                    ``(II) other substantial changes have occurred in 
                either parent's or the child's circumstances.
            ``(D) Procedures under which support orders reviewed in 
        accordance with subparagraph (C) must be adjusted in accordance 
        with the guidelines established pursuant to section 467(a), 
        without a requirement for any other change in circumstances 
        (except that the State may refuse to modify an order in any 
        case in which the change in the support amount, if so modified, 
        would not exceed a threshold percentage (which may not be 
        greater than 10 percent)).''; and
            (2) in subparagraph (E), as redesignated--
                    (A) in the matter preceding clause (i), by striking 
                ``this part'' and inserting ``this part, in accordance 
                with State due process requirements'';
                    (B) in clause (i), by striking ``, at least 30 days 
                before the commencement of such review''; and
                    (C) in clause (iii), by striking ``not less than 30 
                days'' and inserting ``a reasonable time''.
    (b) Automated Procedures.--Section 454A, as added by section 
204(a)(2) and amended by sections 301, 302(c), and 402(d), is amended 
by adding at the end the following new subsection:
    ``(i) Modification of Support Orders.--The automated system 
required under this section shall be used, to the maximum extent 
feasible, to assist in the review and modification of support orders in 
accordance with the timetable under section 466(a)(10) and the 
guidelines under section 467.''.

SEC. 603. STUDY ON USE OF TAX RETURN INFORMATION FOR MODIFICATION OF 
              CHILD SUPPORT ORDERS.

    (a) Requirement for Study.--The Secretary of Health and Human 
Services and the Secretary of the Treasury shall conduct a study to 
determine how return information (as defined in section 6103(b) of the 
Internal Revenue Code of 1986) filed with the Secretary of the Treasury 
might be used to facilitate the process of determining the amount (if 
any) by which child support award amounts should be modified in 
accordance with guidelines established under section 467 of the Social 
Security Act.
    (b) Amendment to Internal Revenue Code.--Section 6103(l)(6) of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new subparagraph:
                    ``(C) Upon written request by the Secretary of 
                Health and Human Services, the Secretary may disclose 
                return information to officers and employees of the 
                Department of the Treasury and the Department of Health 
                and Human Services, as may be specified in such written 
                request, to be used in conducting the study required 
                under section 603 of the Child Support Enforcement Act 
                of 1995. Return information disclosed pursuant to this 
                subparagraph shall be used only for purposes of 
                conducting such study.''.

SEC. 604. COST-OF-LIVING ADJUSTMENT OF CHILD SUPPORT AWARDS.

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

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

    ``(a) In General.--Each State shall include in its State plan 
approved under this part such procedures as are necessary to ensure 
that each child support order issued or modified in the State after the 
effective date of this section shall provide that amount of any child 
support award specified in the order shall, on each anniversary of the 
1st day of the calendar month in which the order is so issued or 
modified, increase by the percentage (if any) by which--
            ``(1) the average of the Consumer Price Index (as defined 
        in section 1(f)(5) of the Internal Revenue Code of 1986) for 
        the 12-month period that ends with the anniversary; exceeds
            ``(2) the average of the Consumer Price Index (as so 
        defined) for the 12-month period that ends on such 1st day.
    ``(b) Rule of Interpretation.--Subsection (a) shall not be 
construed to eliminate other grounds for modifying a child support 
award.''.

                TITLE VII--ENFORCEMENT OF SUPPORT ORDERS

SEC. 701. REVOLVING LOAN FUND FOR PROGRAM IMPROVEMENTS TO INCREASE 
              COLLECTIONS.

    Part D of title IV (42 U.S.C. 651-669) is amended by inserting 
after section 455 the following new section:

   ``revolving fund for program improvements to increase collections

    ``Sec. 455A. (a) Purpose; Authorization of Appropriations.--The 
Secretary is authorized to establish a revolving fund for loans to 
States operating programs under this part, for short-term projects by 
such States (and political subdivisions of such States) for making 
operational improvements in such programs with the potential for 
achieving substantial increases in child support collections. There are 
authorized to be appropriated for payment to such fund $10,000,000 for 
each of fiscal years 1999 and 2000, and $20,000,000 for each of fiscal 
years 2001 through 2004.
    ``(b) Criteria for Loan Awards.--Criteria for evaluating 
applications for loans under this section must include--
            ``(1) the likelihood that the proposed project will 
        increase child support collections, and
            ``(2) the availability to the State (or political 
        subdivision) of funding for the project from other sources.
    ``(c) Amount and Duration of Loans.--
            ``(1) Amount.--Loans may be made to a State under this 
        section in amounts not to exceed $5,000,000 per State or 
        $1,000,000 per project (or $5,000,000 for a single Statewide 
        project in a large State). States may supplement loan funds 
        under this section with funds from other sources, and may 
        require contributions from local jurisdictions served by the 
        project.
            ``(2) Duration.--The period for loan payments to a State 
        for a project under this section may not exceed 3 years.
    ``(d) Recoupment.--
            ``(1) In general.--A loan to a State under this section 
        shall be recovered from the State over 3 fiscal years, 
        beginning in the fourth calendar quarter beginning after the 
        project ends (or, if earlier, the sixteenth calendar quarter 
        beginning after loan payments for the project began).
            ``(2) Amount of recoupment.--A loan to a State under this 
        section shall be recovered from the State through an offset 
        from payments due to the State under section 455(a) for each 
        calendar quarter equal to the amount, if any, by which one-
        twelfth of the total loan (plus interest) exceeds the amount 
        described under subsection (c)(1).
            ``(3) Recoupment credited to fund.--Amounts recovered under 
        this subsection shall be credited to the revolving fund under 
        this section.
    ``(e) Availability as State Share.--Funds received by a State under 
this section may be used by the State as the non-Federal share of 
expenditures under the State program under this part.''.

SEC. 702. FEDERAL INCOME TAX REFUND OFFSET.

    (a) Changed Order of Refund Distribution Under Internal Revenue 
Code.--
            (1) In general.--Section 6402(c) of the Internal Revenue 
        Code of 1986 (relating to offset of past-due support against 
        overpayments) is amended by striking the third sentence.
            (2) Conforming amendment.--Section 6402(d)(2) of such Code 
        (relating to priorities for offset) is amended by striking 
``after such overpayment'' and all that follows through ``Social 
Security Act and'' and inserting ``(A) before such overpayment is 
reduced pursuant to subsection (c), in the case of a debt owed to the 
Department of Education or Department of Health and Human Services with 
respect to a student loan, (B) after such overpayment is reduced 
pursuant to subsection (c), in the case of any other debt, and (C) in 
either case,''.
    (b) Elimination of Disparities in Treatment of Assigned and Non-
Assigned 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) by striking paragraph (2) and inserting the 
                following new paragraph:
    ``(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); and
            ``(B) to or on behalf of the child to whom the support was 
        owed, in the case of past-due support not so assigned.''; and
                    (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) Effective Date.--The amendments made by this section shall 
become effective October 1, 1997.

SEC. 703. 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 after paragraph (4) 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) Report by GAO.--Within 180 days after the date of the enactment 
of this Act, the Comptroller General of the United States shall report 
to Congress on the effectiveness of the Internal Revenue Service in 
assisting with the child support collections processes of the States. 
The report of the study shall include the following items:
            (1) A review of the present role and operation of the 
        Internal Revenue Service in each State's child support 
        collection efforts.
            (2) A listing and analysis of any pilot programs involving 
        the Internal Revenue Service child support collection 
        assistance to the States.
            (3) The barriers that prevent the Internal Revenue Service 
        from becoming more involved in such assistance.
            (4) A review of current State efforts to use State tax 
        collection agencies in support of child support collections 
        efforts.
            (5) Any legislative recommendations to provide for a more 
        effective role for the Internal Revenue Service in the child 
        support enforcement process.
    (c) Effective Date.--The amendments made by subsection (a) shall 
become effective October 1, 1997.

SEC. 704. AUTHORITY TO COLLECT SUPPORT FROM EMPLOYMENT-RELATED PAYMENTS 
              BY UNITED STATES.

    (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) by striking subsections (b), (c), and (d) and inserting 
        the following new subsections:
    ``(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.
    ``(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.'';
            (4) 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
            (5) by adding at the end the following new subsections:
    ``(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)(5)), 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)(5)).
    (c) Conforming Amendments.--
            (1) To part d of title iv.--Sections 461 and 462 (42 U.S.C. 
        661 and 662) are repealed.
            (2) To title 5, united states code.--Section 5520a of title 
        5, United States Code, is amended, in subsections (h)(2) and 
        (i), by striking ``sections 459, 461, and 462 of the Social 
        Security Act (42 U.S.C. 659, 661, and 662)'' 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 of title 10, 
United States Code, is amended--
            (1) in subsection (a)(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 subsection (a)(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 to''; 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. 705. 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 arrearages 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 arrearages 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 
                        arrearages; 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 
                arrearages may execute on, seize, and sell the property 
                in accordance with State law.''.

SEC. 706. VOIDING OF FRAUDULENT TRANSFERS.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 102(a), 
308(a), and 401(a), is amended by inserting after paragraph (14) 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. 707. STATE LAW AUTHORIZING SUSPENSION OF LICENSES.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 102(a), 
308(a), 401(a), and 706, is amended by inserting after paragraph (15) 
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. 708. 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 1 month 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. 709. 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. 710. CHARGES FOR ARREARAGES.

    (a) State Law Requirement.--Section 466(a) (42 U.S.C. 666(a)), as 
amended by sections 102(a), 308(a), 401(a), 706, and 707, is amended by 
inserting after paragraph (16) 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. 711. VISITATION ISSUES BARRED.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 102(a), 
308(a), 401(a), 706, 707, and 710, is amended by inserting after 
paragraph (17) the following new paragraph:
            ``(18) Procedures under which failure to pay child support 
        is not a defense to denial of visitation rights, and denial of 
        visitation rights is not a defense to failure to pay child 
        support.''.

SEC. 712. 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 205(b)(2) and 206, 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(29) that an 
individual owes arrearages of child support in an amount exceeding 
$5,000, 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 712 of the Child Support 
Enforcement 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 101, 105, 205, and 302, is 
        further amended--
                    (A) by striking ``and'' at the end of paragraph 
                (27);
                    (B) by striking the period at the end of paragraph 
                (28) and inserting ``; and''; and
                    (C) by adding after paragraph (28) the following 
                new paragraph:
            ``(29) 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, 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. 713. DENIAL OF FEDERAL BENEFITS, LOANS, AND GUARANTEES TO CERTAIN 
              PERSONS WITH LARGE CHILD SUPPORT ARREARAGES.

    (a) Benefits, Loans, and Guarantees.--Notwithstanding any other 
provision of law, each agency or instrumentality of the Federal 
Government may not, under any program that the agency or 
instrumentality supervises or administers, provide a benefit to, make a 
loan to, or provide any guarantee for the benefit of, any person--
            (1) whose child support arrearages, determined under a 
        court order or an order of an administrative process 
        established under State law, exceed $1,000; and
            (2) who is not in compliance with a plan or an agreement to 
        repay the arrearages.
    (b) Child Support Defined.--For purposes of this subsection, the 
term ``child support'' has the meaning given such term in section 462 
of the Social Security Act.

SEC. 714. SEIZURE OF LOTTERY WINNINGS, SETTLEMENTS, PAYOUTS, AWARDS, 
              AND BEQUESTS, AND SALE OF FORFEITED PROPERTY, TO PAY 
              CHILD SUPPORT ARREARAGES.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 102(a), 
308(a), 401(a), 706, 707, 710, and 711, is amended by inserting after 
paragraph (18) the following new paragraph:
            ``(19) Procedures, in addition to other income withholding 
        procedures, under which a lien is imposed against property with 
        the following effect:
                    ``(A) The distributor of the winnings from a State 
                lottery or State-sanctioned or tribal-sanctioned 
                gambling house or casino shall--
                            ``(i) suspend payment of the winnings from 
                        the person otherwise entitled to the payment 
                        until an inquiry is made to and a response is 
                        received from the State child support 
                        enforcement agency as to whether the person 
                        owes a child support arrearage; and
                            ``(ii) if there is such an arrearage, 
                        withhold from the payment the lesser of the 
                        amount of the payment or the amount of the 
                        arrearage, and pay the amount withheld to the 
                        agency for distribution.
                    ``(B) The person required to make a payment under a 
                policy of insurance or a settlement of a claim made 
                with respect to the policy shall--
                            ``(i) suspend the payment until an inquiry 
                        is made to and a response received from the 
                        agency as to whether the person otherwise 
                        entitled to the payment owes a child support 
                        arrearage; and
                            ``(ii) if there is such an arrearage, 
                        withhold from the payment the lesser of the 
                        amount of the payment or the amount of the 
                        arrearage, and pay the amount withheld to the 
                        agency for distribution.
                    ``(C) The payor of any amount pursuant to an award, 
                judgment, or settlement in any action brought in 
                Federal or State court shall--
                            ``(i) suspend the payment of the amount 
                        until an inquiry is made to and a response is 
                        received from the agency as to whether the 
                        person otherwise entitled to the payment owes a 
                        child support arrearage; and
                            ``(ii) if there is such an arrearage, 
                        withhold from the payment the lesser of the 
                        amount of the payment or the amount of the 
                        arrearage, and pay the amount withheld to the 
                        agency for distribution.
                    ``(D) If the State seizes property forfeited to the 
                State by an individual by reason of a criminal 
                conviction, the State shall--
                            ``(i) hold the property until an inquiry is 
                        made to and a response is received from the 
                        agency as to whether the individual owes a 
                        child support arrearage; and
                            ``(ii) if there is such an arrearage, sell 
                        the property and, after satisfying the claims 
                        of all other private or public claimants to the 
                        property and deducting from the proceeds of the 
                        sale the attendant costs (such as for towing, 
                        storage, and the sale), pay the lesser of the 
                        remaining proceeds or the amount of the 
                        arrearage directly to the agency for 
                        distribution.
                    ``(E) Any person required to make a payment in 
                respect of a decedent shall--
                            ``(i) suspend the payment until an inquiry 
                        is made to and a response received from the 
                        agency as to whether the person otherwise 
                        entitled to the payment owes a child support 
                        arrearage; and
                            ``(ii) if there is such an arrearage, 
                        withhold from the payment the lesser of the 
                        amount of the payment or the amount of the 
                        arrearage, and pay the amount withheld to the 
                        agency for distribution.''.

                       TITLE VIII--DEMONSTRATIONS

SEC. 801. CHILD SUPPORT ENFORCEMENT AND ASSURANCE DEMONSTRATIONS.

    (a) Demonstrations Authorized.--The Secretary of Health and Human 
Services (hereafter in this section referred to as the ``Secretary'') 
shall make grants to 3 States for demonstrations under this section to 
determine the effectiveness of programs to provide assured levels of 
child support to custodial parents of children for whom paternity and 
support obligations have been established.
    (b) Duration of Projects.--
            (1) Total project period.--The Secretary shall make grants 
        to States for demonstrations under this section beginning in 
        fiscal year 1998, for periods of 7 to 10 years.
            (2) Phasedown period.--Each State implementing a 
        demonstration project under this section shall--
                    (A) phase down activities under such demonstration 
                during the final 2 years of the project; and
                    (B) obtain the Secretary's approval, before the 
                beginning of such phasedown period, of a plan for 
                accomplishing such phasedown.
    (c) Considerations in Selection of Projects.--
            (1) Scope.--Projects under this section may, but need not, 
        be statewide in scope.
            (2) State administration.--
                    (A) Responsible state agency.--A State 
                demonstration project under this section shall be 
                administered either by the State agency administering 
                the program under part D of title IV of the Social 
                Security Act or the State department of revenue and 
                taxation.
                    (B) Automation.--The State agency described in 
                subparagraph (A) shall operate (or have automated 
                access to) the automated data system required under 
                section 454(16) of the Social Security Act, and shall 
                have adequate automated capacity to carry out the 
                project under this section (including the timely 
                distribution of child support assurance benefits).
            (3) Controls.--At least 1 demonstration project under this 
        section shall include randomly assigned control groups.
    (d) Eligibility.--
            (1) In general.--Child support assurance payments under 
        projects under this section shall be available only to children 
        for whom paternity and support obligations have been 
        established (or with respect to whom a determination has been 
        made that efforts to establish paternity or support would not 
        be in the best interests of the child).
            (2) Families with shared custody.--In cases in which both 
        parents share custody of a child, a parent and child shall not 
        be eligible for benefits under a demonstration under this 
        section unless--
                    (A) a support order is in effect entitling such 
                parent to support payments in excess of the minimum 
                benefit; or
                    (B) the agency or tribunal which issued the order 
                certifies that the child support award would be below 
                such minimum benefit if either parent was awarded sole 
custody and the guidelines under section 467 of the Social Security Act 
were applied.
            (3) State option to base eligibility on need.--At the 
        option of the State, eligibility for benefits under a 
        demonstration under this section may be limited to families 
        with incomes and resources below a standard of need established 
        by the State.
    (e) Benefit Amounts.--
            (1) Range of benefit levels.--States shall have flexibility 
        to set annual benefit levels under demonstrations under this 
        section, provided that (subject to the remaining provisions of 
        this subsection) such levels--
                    (A) are not less than $1,500 for a family with 1 
                child or $3,000 for a family with 4 or more children; 
                and
                    (B) do not exceed $3,000 for a family with 1 child 
                or $4,500 for a family with 4 or more children.
            (2) Indexing.--Annual benefit levels for each fiscal year 
        after fiscal year 1997 shall be indexed to reflect the change 
        in the Consumer Price Index.
            (3) Unmatched excess benefits.--The Secretary may permit 
        States to pay benefits in excess of a maximum specified in 
        paragraphs (1) and (2), but Federal matching of such payments 
        shall not be available for benefits in excess of the amounts 
        specified in paragraph (1) (as adjusted in accordance with 
        paragraph (2)) by more than $25 per month.
    (f) Treatment of Benefits.--
            (1) For purposes of afdc.--The amount of aid otherwise 
        payable to a family under part A of title IV of the Social 
        Security Act shall be reduced by an amount equal to the amount 
        of child support assurance paid to such family (or, at the 
        Secretary's discretion, by a percentage of such amount paid 
        specified by the Secretary).
            (2) For purposes of other benefit programs.--
                    (A) In general.--Except as provided in subparagraph 
                (B), child support assurance paid to a family shall be 
                considered ordinary income for purposes of determining 
                eligibility for and benefits under any Federal or State 
                program.
                    (B) Deemed afdc eligibility.--At the option of the 
                State, a child (or family) that is ineligible for aid 
                under part A of title IV of the Social Security Act 
                because of payments under a demonstration under this 
                section may be deemed to be receiving such aid for 
                purposes of determining eligibility for other Federal 
                and State programs.
            (3) For tax purposes.--Child support assurance which is 
        paid to a family under this section and is not reimbursed from 
        a child support collection from a noncustodial parent shall be 
        considered ordinary income for purposes of Federal and State 
        tax liability.
    (g) Work Program Option.--At the option of the State grantee, a 
demonstration under this section may include a work program for 
unemployed noncustodial parents of eligible children.
    (h) Availability of Appropriations for Payments to States.--
            (1) State entitlement to part d of title iv funding.--A 
        State administering an approved demonstration under this 
        section in a calendar quarter shall be entitled to payments for 
        such quarter, pursuant to section 455 of the Social Security 
        Act for the Federal share of reasonable and necessary 
        expenditures (including expenditures for benefit payments and 
        for associated administrative costs) under such project, in an 
        amount (subject to paragraphs (2) and (3)) equal to--
                    (A) with respect to that portion of such 
                expenditures equal to the reduction of expenditures 
                under part A of title IV of the Social Security Act 
                pursuant to subsection (g)(1), a percentage equal to 
                the percentage that would have been paid if such 
                expenditures had been made under such part; and
                    (B) 90 percent of the remainder of such 
                expenditures.
            (2) States with low afdc benefits.--In the case of a State 
        in which benefit levels under part A of title IV of such Act 
        are less than the national median for such payments, the 
        Secretary may elect to provide 90 percent Federal matching of a 
        portion of expenditures under a project under this section that 
        would otherwise be matched at the rate specified in paragraph 
        (1)(A).
            (3) Funding limits; pro rata reductions of state 
        matching.--
                    (A) Funds available.--There shall be available to 
                the Secretary, from amounts appropriated to carry out 
                part D of title IV of the Social Security Act, for 
                purposes of carrying out demonstrations under this 
                section, amounts not to exceed--
                            (i) $27,000,000 for fiscal year 1998;
                            (ii) $55,000,000 for fiscal year 1999;
                            (iii) $70,000,000 for each of fiscal years 
                        2000 through 2003; and
                            (iv) $55,000,000 for fiscal year 2004.
                    (B) Pro rata reductions.--The Secretary shall make 
                pro rata reductions in the amounts otherwise payable to 
                States under this section as necessary to comply with 
                the funding limitation specified in subparagraph (A).
    (i) Distribution of Child Support Collections.--Notwithstanding 
section 457 of the Social Security Act, support payments collected from 
the noncustodial parent of a child receiving (or who has received) 
child support assurance payments under this section shall be 
distributed as follows:
            (1) First, amounts equal to the total support owed for such 
        month shall be paid to the family.
            (2) Second, from any remainder, amounts owed to the State 
        on account of child support assurance payments to the family 
        shall be paid to the State (with appropriate reimbursement to 
        the Federal Government of its share to such payments).
            (3) Third, from any remainder, arrearages of support owed 
        to the family shall be paid to the family.
            (4) Fourth, from any remainder, amounts owed to the State 
        on account of current or past payments of aid under part A of 
        title IV of the Social Security Act shall be paid to the State 
        (with appropriate reimbursement to the Federal Government of 
        its share of such payments).
    (j) Evaluations and Reports.--
            (1) State evaluations.--Each State administering a 
        demonstration project under this section shall--
                    (A) provide for ongoing and retrospective 
                evaluation of the project, meeting such conditions and 
                standards as the Secretary may require; and
                    (B) submit to the Secretary such reports (at such 
                times, in such format, and containing such information) 
                as the Secretary may require, including at least an 
                interim report not later than 90 days after the end of 
                the fourth year of the project, and a final report not 
                later than 1 year after the completion of the project, 
                which shall include information on and analysis of the 
                effect of the project with respect to--
                            (i) the economic circumstances of both 
                        noncustodial and custodial parents;
                            (ii) the rate of compliance by noncustodial 
                        parents with support orders;
                            (iii) work-force participation by both 
                        custodial and noncustodial parents;
                            (iv) need for or amount of aid to families 
                        with dependent children under part A of title 
                        IV of the Social Security Act;
                            (v) paternity establishment rates; and
                            (vi) any other matters the Secretary may 
                        specify.
            (2) Reports to congress.--The Secretary shall, on the basis 
        of reports received from States administering projects under 
        this section, make the following reports, containing an 
        assessment of the effectiveness of the projects and any 
        recommendations the Secretary considers appropriate:
                    (A) An interim report, not later than 6 months 
                following receipt of the interim State reports required 
                by subsection (c).
                    (B) A final report, not later than 6 months 
                following receipt of the final State reports required 
                under subsection (i).
            (3) Funding for costs to secretary.--There are authorized 
        to be appropriated $10,000,000 for fiscal year 1998, to remain 
        available until expended for payment of the cost of evaluations 
        by the Secretary of demonstrations under this section.

SEC. 802. SOCIAL SECURITY ACT DEMONSTRATIONS.

    Section 1115(c)(3) (42 U.S.C. 1315(c)(3)) is amended by striking 
``increased cost'' and all that follows and inserting ``an increase in 
total costs to the Federal Government.''.

                 TITLE IX--ACCESS AND VISITATION GRANTS

SEC. 901. GRANTS TO STATES FOR ACCESS AND VISITATION PROGRAMS.

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

         ``grants to states for access and visitation programs

    ``Sec. 469A. (a) Purposes; Authorization of Appropriations.--For 
the purposes of enabling States to establish and administer programs to 
support and facilitate absent parents' access to and visitation of 
their children, by means of activities including mediation (both 
voluntary and mandatory), counseling, education, development of 
parenting plans, visitation enforcement (including monitoring, 
supervision and neutral drop-off and pickup), and development of 
guidelines for visitation and alternative custody arrangements, there 
are authorized to be appropriated $5,000,000 for each of fiscal years 
1997 and 1998, and $10,000,000 for each succeeding fiscal year.
    ``(b) Payments to States.--
            ``(1) In general.--Each State shall be entitled to payment 
        under this section for each fiscal year in an amount equal to 
        its allotment under subsection (c) for such fiscal year, to be 
        used for payment of 90 percent of State expenditures for the 
        purposes specified in subsection (a).
            ``(2) Supplementary use.--Payments under this section shall 
        be used by a State to supplement (and not to substitute for) 
        expenditures by the State, for activities specified in 
        subsection (a), at a level at least equal to the level of such 
        expenditures for fiscal year 1995.
    ``(c) Allotments to States.--
            ``(1) In general.--For purposes of subsection (b), each 
        State shall be entitled (subject to paragraph (2)) to an amount 
        for each fiscal year bearing the same ratio to the amount 
        authorized to be appropriated pursuant to subsection (a) for 
        such fiscal year as the number of children in the State living 
        with only 1 biological parent bears to the total number of such 
        children in all States.
            ``(2) Minimum allotment.--Allotments to States under 
        paragraph (1) shall be adjusted as necessary to ensure that no 
        State is allotted less than $50,000 for fiscal year 1997 or 
        1998, or $100,000 for any succeeding fiscal year.
    ``(d) Federal Administration.--The program under this section shall 
be administered by the Administration for Children and Families.
    ``(e) State Program Administration.--
            ``(1) In general.--Each State may administer the program 
        under this section directly or through grants to or contracts 
        with courts, local public agencies, or non-profit private 
        entities.
            ``(2) Statewide plan permissible.--State programs under 
        this section may, but need not, be statewide.
            ``(3) Evaluation.--States administering programs under this 
        section shall monitor, evaluate, and report on such programs in 
accordance with requirements established by the Secretary.

                      TITLE X--EFFECT OF ENACTMENT

SEC. 1001. 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 Social Security Act, or 
        revision of State plans under section 454 of such Act, shall be 
        effective with respect to periods beginning on and after 
        October 1, 1996; and
            (2) all other provisions of this 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) the 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.

SEC. 1002. SEVERABILITY.

    If any provision of this Act or the application thereof to any 
person or circumstance is held invalid, the invalidity shall not affect 
other provisions or applications of this Act which can be given effect 
without regard to the invalid provision or application, and to this end 
the provisions of this Act shall be severable.
                                 <all>
S 687 IS----2
S 687 IS----3
S 687 IS----4
S 687 IS----5
S 687 IS----6
S 687 IS----7
S 687 IS----8
S 687 IS----9
S 687 IS----10
S 687 IS----11
S 687 IS----12