[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 828 Introduced in Senate (IS)]







104th CONGRESS
  1st Session
                                 S. 828

  To enable each State to assist applicants and recipients of aid to 
  families with dependent children in providing for the economic well-
 being of their children, to allow States to test new ways to improve 
              the welfare system, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                 May 18 (legislative day, May 15), 1995

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

_______________________________________________________________________

                                 A BILL


 
  To enable each State to assist applicants and recipients of aid to 
  families with dependent children in providing for the economic well-
 being of their children, to allow States to test new ways to improve 
              the welfare system, and for other purposes.
    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Family Support Act 
of 1995''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. References to Social Security Act.
                TITLE I--STRENGTHENING THE JOBS PROGRAM

Sec. 101. Increase in required JOBS participation rates.
Sec. 102. Promoting work.
Sec. 103. Funding for the JOBS program and child care.
Sec. 104. Evaluation of the JOBS program.
           TITLE II--AID TO FAMILIES WITH DEPENDENT CHILDREN

              Subtitle A--Requirements for Teenage Parents

Sec. 201. Case management for parents under age 20.
Sec. 202. Participation in educational activity.
Sec. 203. Living arrangement requirements.
                     Subtitle B--State Flexibility

       Part I--Establishment of Interagency Welfare Review Board

Sec. 211. Interagency Welfare Review Board.
Sec. 212. Waiver application.
Sec. 213. Review and approval of applications.
Sec. 214. Definition of State.
           Part II--Additional Provisions Concerning Waivers

Sec. 221. Schedule for consideration of waiver applications.
Sec. 222. State authority to establish certain AFDC rules.
Sec. 223. Waiver authority for the JOBS program.
                  TITLE III--CHILD SUPPORT ENFORCEMENT

Sec. 300. Short title.
    Subtitle A--Improvements to the Child Support Collection System

  Part I--Eligibility and Other Matters Concerning Title IV-D Program 
                                Clients

Sec. 301. Cooperation requirement and good cause exception.
Sec. 302. State obligation to provide paternity establishment and child 
                            support enforcement services.
Sec. 303. Distribution of payments.
Sec. 304. Rights to notification and hearings.
Sec. 305. Privacy safeguards.
              Part II--Program Administration and Funding

Sec. 311. Federal matching payments.
Sec. 312. Performance-based incentives and penalties.
Sec. 313. Federal and State reviews and audits.
Sec. 314. Required reporting procedures.
Sec. 315. Automated data processing requirements.
Sec. 316. Director of CSE program; staffing study.
Sec. 317. Funding for secretarial assistance to State programs.
Sec. 318. Data collection and reports by the Secretary.
                   Part III--Locate and Case Tracking

Sec. 321. Central State and case registry.
Sec. 322. Centralized collection and disbursement of support payments.
Sec. 323. Amendments concerning income withholding.
Sec. 324. Locator information from interstate networks.
Sec. 325. Expanded Federal parent locator service.
Sec. 326. Use of social security numbers.
           Part IV--Streamlining and Uniformity of Procedures

Sec. 331. Adoption of uniform State laws.
Sec. 332. Improvements to full faith and credit for child support 
                            orders.
Sec. 333. State laws providing expedited procedures.
                    Part V--Paternity Establishment

Sec. 341. State laws concerning paternity establishment.
Sec. 342. Outreach for voluntary paternity establishment.
       Part VI--Establishment and Modification of Support Orders

Sec. 351. National Child Support Guidelines Commission.
Sec. 352. Simplified process for review and adjustment of child support 
                            orders.
                Part VII--Enforcement of Support Orders

Sec. 361. Federal income tax refund offset.
Sec. 362. Internal Revenue Service collection of arrearages.
Sec. 363. Authority to collect support from Federal employees.
Sec. 364. Enforcement of child support obligations of members of the 
                            Armed Forces.
Sec. 365. Voiding of fraudulent transfers.
Sec. 366. State law authorizing suspension of licenses.
Sec. 367. Reporting arrearages to credit bureaus.
Sec. 368. Extended statute of limitation for collection of arrearages.
Sec. 369. Charges for arrearages.
Sec. 370. Denial of passports for nonpayment of child support.
                       Part VIII--Medical Support

Sec. 381. Technical correction to ERISA definition of medical child 
                            support order.
                Part IX--Access and Visitation Programs

Sec. 391. Grants to States for access and visitation programs.
                    Subtitle B--Effect of Enactment

Sec. 395. Effective dates.
Sec. 396. Severability.
                 TITLE IV--SUPPLEMENTAL SECURITY INCOME

Sec. 401. Revised regulations applicable to the determination of 
                            disability in individuals under the age of 
                            18.
Sec. 402. Directory of services.
Sec. 403. Use of standardized tests and their equivalent.
Sec. 404. Graduated benefits for additional children.
Sec. 405. Treatment requirements for disabled individuals under the age 
                            of 18.
Sec. 406. Special accounts for individuals under the age of 18.
Sec. 407. Continuing disability reviews for individuals under the age 
                            of 18.
Sec. 408. Coordination of services for SSI children.
              TITLE V--FINANCING; MISCELLANEOUS PROVISIONS

Sec. 501. Revision of tax rules on expatriation.
Sec. 502. Basis of assets of nonresident alien individuals becoming 
                            citizens or residents.
Sec. 503. Earned income tax credit denied to individuals not authorized 
                            to be employed in the United States.
Sec. 504. Earned income tax credit denied to individuals with 
                            substantial capital gain net income.
Sec. 505. Treatment of distributions in redemption of stock held by a 
                            corporation.
Sec. 506. Uniform alien eligibility criteria for public assistance 
                            programs.
Sec. 507. Deeming of sponsor's income and resources to an alien under 
                            the supplemental security income, aid to 
                            families with dependent children, and food 
                            stamp programs.
SEC. 2. REFERENCES TO SOCIAL SECURITY ACT.

    Except as otherwise specifically provided, whenever 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 (42 
U.S.C. 301 et seq.).

                TITLE I--STRENGTHENING THE JOBS PROGRAM

SEC. 101. INCREASE IN REQUIRED JOBS PARTICIPATION RATES.

    (a) In General.--Section 403(l)(3) (42 U.S.C. 603(l)(3)) is 
amended--
            (1) in subparagraph (A)--
                    (A) in clause (v), by striking ``and'';
                    (B) in clause (vi), by striking the period and 
                inserting ``or 1996;''; and
                    (C) by adding at the end the following new clauses:
                    ``(vii) 30 percent if such year is 1997;
                    ``(viii) 35 percent if such year is 1998;
                    ``(ix) 40 percent if such year is 1999;
                    ``(x) 45 percent if such year is 2000; and
                    ``(xi) 50 percent if such year is 2001 or any year 
                thereafter.''; and
            (2) in subparagraph (B)--
                    (A) in clause (ii)(IV), by striking ``fiscal years 
                1994 and 1995'' and inserting ``any fiscal year 
                beginning after fiscal year 1993''; and
                    (B) in clause (iii), by striking subclauses (I) and 
                (II) and inserting the following:
            ``(I) the average monthly number of individuals required or 
        allowed by the State to participate in the program under part F 
        who have participated in such program in months in the 
        computation period (including individuals who combine 
        employment and participation in such program for an average of 
        20 hours a week in that month in such period), plus the number 
        of individuals who are employed for an average of 20 hours a 
        week in that month in such period, divided by
            ``(II) the average monthly number of individuals required 
        to participate under the program under part F in such period 
        (other than individuals described in subparagraph (C)(iii)(I) 
        or (D) of section 402(a)(19) with respect to whom the State has 
        exercised its option to require their participation), minus the 
        average monthly number of individuals who are being sanctioned 
        in such period pursuant to section 402(a)(19)(G).''.
    (b) Conforming Amendments.--The Family Support Act of 1988 (42 
U.S.C. 1305 note) is amended by striking section 204(b)(2).

SEC. 102. PROMOTING WORK.

    (a) Increased Employment and Job Retention.--Section 481(a) (42 
U.S.C. 681(a)) is amended to read as follows:
    ``Sec. 481. (a) Purpose.--It is the purpose of this part to assist 
each State in providing such services as the State determines to be 
necessary to--
            ``(1) enable individuals receiving assistance under part A 
        to enter employment as quickly as possible;
            ``(2) increase job retention; and
            ``(3) ensure that needy families with children obtain the 
        education, training, and employment that will help them avoid 
        long-term welfare dependence.''.
    (b) State Agency Responsibilities.--Section 482(a)(2) (42 U.S.C. 
682(a)(2)) is amended--
            (1) by striking ``(2) The'' and inserting ``(2)(A) The''; 
        and
            (2) by adding at the end the following new subparagraphs:
    ``(B) The State agency shall establish procedures to--
            ``(i) encourage the placement of participants in jobs as 
        quickly as possible, including using performance measures that 
        reward staff performance, or such other management practice as 
        the State may choose; and
            ``(ii) assist participants in retaining employment after 
        they are hired.
    ``(C) The Secretary shall provide technical assistance and training 
to States to assist the States in implementing effective management 
practices and strategies in order to achieve the purpose of this 
part.''.
    (c) Services and Activities Under the JOBS Program.--Section 
482(d)(1)(A)(i) (42 U.S.C. 682(d)(1)(A)(i)) is amended--
            (1) in the matter preceding subclause (I), by striking 
        ``shall'' and inserting ``may''; and
            (2) in subclause (I), by striking ``(as appropriate)'' and 
        all that follows through the semicolon and inserting a 
        semicolon.
    (d) Job Placement Voucher Program.--
            (1) Addition of program.--Section 482 (42 U.S.C. 682) is 
        amended--
                    (A) in subsection (d)(1)(A)(ii)--
                            (i) in subclause (III), by striking ``and'' 
                        at the end;
                            (ii) in subclause (IV), by striking the 
                        period and inserting ``; and''; and
                            (iii) by adding at the end the following 
                        new subclause:
                            ``(V) a job placement voucher program as 
                        described in subsection (h).'';
                    (B) by redesignating subsections (h) and (i) as 
                subsections (i) and (j), respectively; and
                    (C) by inserting after subsection (g), the 
                following subsection:
    ``(h) Job Placement Voucher Program.--(1) The State agency may 
establish and operate a job placement voucher program for individuals 
participating in the program under this part.
    ``(2) A State that elects to operate a job placement voucher 
program under this subsection--
            ``(i) shall establish eligibility requirements for 
        participation in the job placement voucher program; and
            ``(ii) may establish other requirements for such voucher 
        program as the State deems appropriate.
    ``(3) A job placement voucher program operated by a State under 
this subsection shall include the following requirements:
            ``(A) The State shall identify, maintain, and make 
        available to an individual applying for or receiving assistance 
        under part A a list of State-approved job placement 
        organizations that offer services in the area where the 
        individual resides and a description of the job placement and 
        support services each such organization provides. Such 
        organizations may be publicly or privately owned and operated.
            ``(B)(i) An individual determined to be eligible for 
        assistance under part A shall, at the time the individual 
        becomes eligible for such assistance--
                    ``(I) receive the list and description described in 
                subparagraph (A);
                    ``(II) agree, in exchange for job placement and 
                support services, to--
                                    ``(aa) execute, within a period of 
                                time permitted by the State, a contract 
                                with a State-approved job placement 
                                organization which provides that the 
                                organization shall attempt to find 
                                employment for the individual; and
                                    ``(bb) comply with the terms of the 
                                contract; and
                    ``(III) receive a job placement voucher (in an 
                amount to be determined by the State) for payment to a 
                State-approved job placement organization.
            ``(ii) The State shall impose the sanctions provided for in 
        section 402(a)(19)(G) on any individual who does not fulfill 
        the terms of a contract executed with a State-approved job 
        placement organization.
            ``(C) At the time an individual executes a contract with a 
        State-approved job placement organization, the individual shall 
        provide the organization with the job placement voucher that 
        the individual received pursuant to subparagraph (B).
            ``(D)(i) A State-approved job placement organization may 
        redeem for payment from the State not more than 25 percent of 
        the value of a job placement voucher upon the initial receipt 
        of the voucher for payment of costs incurred in finding and 
        placing an individual in an employment position. The remaining 
        value of such voucher shall not be redeemed for payment from 
        the State until the State-approved job placement organization--
                    ``(I) finds an employment position (as determined 
                by the State) for the individual who provided the 
                voucher; and
                    ``(II) certifies to the State that the individual 
                remains employed with the employer that the 
                organization originally placed the individual with for 
                the greater of--
                            ``(aa) 6 continuous months; or
                            ``(bb) a period determined by the State.
            ``(ii) A State may modify, on a case-by-case basis, the 
        requirement of clause (i)(II) under such terms and conditions 
        as the State deems appropriate.
            ``(E)(i) The State shall establish performance-based 
        standards to evaluate the success of the State job placement 
        voucher program operated under this subsection in achieving 
        employment for individuals participating in such voucher 
        program. Such standards shall take into account the economic 
        conditions of the State in determining the rate of success.
            ``(ii) The State shall, not less than once a fiscal year, 
        evaluate the job placement voucher program operated under this 
        subsection in accordance with the performance-based standards 
        established under clause (i).
            ``(iii) The State shall submit a report containing the 
        results of an evaluation conducted under clause (ii) to the 
        Secretary and a description of the performance-based standards 
        used to conduct the evaluation in such form and under such 
        conditions as the Secretary shall require. The Secretary shall 
        review each report submitted under this clause and may require 
        the State to revise the performance-based standards if the 
        Secretary determines that the State is not achieving an 
        adequate rate of success for such State.''.
            (2) Conforming amendments.--Title IV (42 U.S.C. 681 et 
        seq.) is amended--
                    (A) in section 403(l) (42 U.S.C. 603(l))--
                            (i) in paragraph (1)(A), by striking 
                        ``482(i)(2)'' and inserting ``482(j)(2)''; and
                            (ii) in paragraph (4)(A)(i), by inserting 
                        ``a job placement voucher program,'' after 
                        ``on-the-job training,''; and
                    (B) in section 431(a)(6) (42 U.S.C. 629a(a)(6))--
                            (i) by striking ``482(i)(5)'' and inserting 
                        ``482(j)(5)''; and
                            (ii) by striking ``482(i)(7)(A)'' and 
                        inserting ``482(j)(7)(A)''.
            (3) Effective date.--The amendments made by paragraphs (1) 
        and (2) shall be effective with respect to calendar quarters 
        beginning with the second calendar quarter beginning after the 
        date of the enactment of this Act.
    (e) Elimination of Requirement To Provide Educational Activities to 
Individuals Age 20 or Older; Permitting States To Provide Employment 
Services for Non-Custodial Parents.--Section 482(d) (42 U.S.C. 682(d)) 
is amended--
            (1) by striking paragraph (2);
            (2) by redesignating paragraph (3) as paragraph (2); and
            (3) in paragraph (2), as so redesignated--
                    (A) by striking ``up to 5''; and
                    (B) by striking the second sentence.
    (f) Increase in Period in Which Earned Income Disregard May Apply 
Under Work Supplementation Program.--Section 482(e) (42 U.S.C. 682(e)) 
is amended in paragraphs (2)(G) and (4), by striking ``9 months'' and 
inserting ``12 months''.
    (g) State Flexibility for the Job Search Program.--Section 482(g) 
(42 U.S.C. 682(g)) is amended--
            (1) in paragraph (2)--
                    (A) by inserting ``, and subject to paragraph 
                (3),'' after ``section 402(a)(19)(B)(i)''; and
                    (B) by striking ``applies)--'' and all that follows 
                through the period at the end and inserting ``applies) 
                at such time or times as the State agency may 
                determine.''; and
            (2) in paragraph (3), by inserting ``, not including any 
        period of job search that occurred at the same time that the 
        individual was participating in another activity under this 
        part'' after ``12 months''.

SEC. 103. FUNDING FOR THE JOBS PROGRAM AND CHILD CARE.

    (a) Funding for the JOBS Program.--
            (1) Increase in funding.--Section 403(k)(3) (42 U.S.C. 
        603(k)(3)) is amended--
                    (A) in subparagraph (E), by striking ``and''; and
                    (B) by striking subparagraph (F) and inserting the 
                following:
            ``(F) $1,200,000,000 in the case of the fiscal year 1996,
            ``(G) $1,300,000,000 in the case of the fiscal year 1997,
            ``(H) $1,600,000,000 in the case of the fiscal year 1998,
            ``(I) $1,900,000,000 in the case of the fiscal year 1999,
            ``(J) $2,200,000,000 in the case of the fiscal year 2000, 
        and
            ``(K) $2,500,000,000 in the case of the fiscal year 2001, 
        and each succeeding fiscal year,''.
            (2) Applicable percentages.--
                    (A) In general.--Section 403(l)(1) (42 U.S.C. 
                603(l)(1)) is amended--
                            (i) by striking ``(l)(1)(A) In lieu'' and 
                        inserting ``(l)(1) In lieu''; and
                            (ii) by striking ``(including 
                        expenditures'' and all that follows through 
                        subparagraph (B), and inserting ``an amount 
                        equal to the greater of--
            ``(A) 70 percent; or
            ``(B) the Federal medical assistance percentage (as defined 
        in section 1118 in the case of any State to which section 1108 
        applies, or as defined in section 1905(b) in the case of any 
        other State) plus ten percentage points,
in the case of expenditures made by a State in operating such a program 
for in a fiscal year.''.
                    (B) Conforming amendments.--Section 403(l) (42 
                U.S.C. 603(l)) is amended--
                            (i) in paragraph (2)(A), by striking 
                        ``paragraph (1)(A)'' and inserting ``paragraph 
                        (1)''; and
                            (ii) in paragraph (3)(C), by striking 
                        ``paragraph (1)(A)'' and inserting ``paragraph 
                        (1)''.
    (b) Funding for Child Care.--
            (1) Funding for jobs and transitional child care.--
                    (A) In general.--Section 402(g)(3)(A) (42 U.S.C. 
                602(g)(3)(A)) is amended to read as follows:
    ``(3)(A) In the case of amounts expended for child care pursuant to 
clause (i) or (ii) of paragraph (1)(A), the applicable rate for 
purposes of section 403(a) shall be the greater of--
            ``(i) 70 percent; or
            ``(ii) the Federal medical assistance percentage (as 
        defined in section 1118 in the case of any State to which 
        section 1108 applies, or as defined in section 1905(b) in the 
        case of any other State) plus ten percentage points.''.
                    (B) Extension of the transitional child care 
                program.--Section 304(b) of the Family Support Act of 
                1988 (42 U.S.C. 602 note) is amended--
                            (i) by striking ``(1)''; and
                            (ii) by striking paragraph (2).
            (2) Funding for at-risk child care.--Section 403(n)(1)(A) 
        (42 U.S.C. 603(n)(1)(A)) is amended to read as follows:
            ``(A) 70 percent, or, if higher, the Federal medical 
        assistance percentage (as defined in section 1118 in the case 
        of any State to which section 1108 applies, or as defined in 
        section 1905(b) in the case of any other State) plus ten 
        percentage points, of the expenditures by the State in 
        providing child care services pursuant to section 402(i), and 
        in administering the provision of such child care services, for 
        any fiscal year; and''.
    (c) Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall take effect on the date 
        of the enactment of this Act.
            (2) Applicable percentages.--The amendments made by 
        subsections (a)(2) and (b) shall take effect on October 1, 
        1996.

SEC. 104. EVALUATION OF THE JOBS PROGRAM.

    (a) Evaluation Objectives and Development.--
            (1) Objectives.--The Secretary shall develop and implement 
        a plan for evaluating the programs operated by the States under 
        part F of title IV of the Social Security Act (42 U.S.C. 681 et 
        seq.). Such plan shall be designed to develop information to--
                    (A) assess the impacts of such programs with 
                respect to--
                            (i) cost effectiveness;
                            (ii) the level of earnings achieved;
                            (iii) welfare receipt;
                            (iv) job retention;
                            (v) the effects on children; and
                            (vi) such other factors as the Secretary 
                        may determine;
                    (B) provide guidance to the Secretary in making any 
                necessary changes and improvements in the performance 
                standards required by section 487 of such Act (42 
                U.S.C. 687); and
                    (C) enable the Secretary to provide technical 
                assistance to the States to assist them in improving 
                such programs and in meeting such standards.
            (2) Development of plan.--The plan described in paragraph 
        (1) shall be developed by the Secretary in consultation with 
        representatives of the States.
    (b) Definitions.--For purposes of this section:
            (1) Secretary.--The term ``Secretary'' means the Secretary 
        of Health and Human Services.
            (2) State.--The term ``State'' means any of the 50 States, 
        the District of Columbia, the Commonwealth of Puerto Rico, the 
        Virgin Islands, Guam, and American Samoa.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary for fiscal years 1996 
through 2000 for the purpose of carrying out the provisions of this 
section. Any sums so appropriated shall remain available until 
expended.
           TITLE II--AID TO FAMILIES WITH DEPENDENT CHILDREN

              Subtitle A--Requirements for Teenage Parents
SEC. 201. CASE MANAGEMENT FOR PARENTS UNDER AGE 20.

    (a) In General.--Section 482(b) (42 U.S.C. 682(b)) is amended by 
adding at the end the following new paragraph:
            ``(4) Case manager.--The State agency shall--
                    ``(A) assign a case manager to each custodial 
                parent receiving aid under part A who is under age 20;
                    ``(B) provide that case managers will have the 
                training necessary (taking into consideration the 
                recommendations of appropriate professional 
                organizations) to enable them to carry out their 
                responsibilities and will be assigned a caseload the 
                size of which permits effective case management; and
                    ``(C) provide that the case manager will be 
                responsible for--
                            ``(i) assisting such parent in obtaining 
                        appropriate services, including at a minimum, 
                        parenting education, family planning services, 
                        education and vocational training, and child 
                        care and transportation services,
                            ``(ii) making the determinations required 
                        to implement the provision of section 
                        402(a)(43),
                            ``(iii) monitoring such parent's compliance 
                        with all program requirements, and, where 
                        appropriate, providing incentives and applying 
                        sanctions, and
                            ``(iv) providing general guidance, 
                        encouragement, and support to assist such 
                        parent in his or her role as a parent and in 
                        achieving self-sufficiency.''.
    (b) Effective Date.--The amendment made by this section shall be 
effective with respect to calendar quarters beginning on or after 
October 1, 1996.

SEC. 202. PARTICIPATION IN EDUCATIONAL ACTIVITY.

    (a) In General.--Section 402(a)(19)(E) (42 U.S.C. 602(a)(19)(E)) is 
amended to read as follows:
                    ``(E) that the State agency shall--
                            ``(i) in the case of a custodial parent who 
                        has not attained 20 years of age, has not 
                        successfully completed a high school education 
                        (or its equivalent), and is required to 
                        participate in the program (including an 
                        individual who would otherwise be exempt from 
                        participation in the program solely by reason 
                        of subparagraph (C)(iii)), require such parent 
                        to--
                                    ``(I) attend school,
                                    ``(II) participate in a program 
                                that combines classroom and job 
                                training, or
                                    ``(III) work toward attainment of a 
                                high school education (or its 
                                equivalent);
                            ``(ii) in the case of custodial parent who 
                        has not attained 20 years of age, but has 
                        successfully completed a high school education 
                        (or its equivalent), and is required to 
                        participate in the program (including an 
                        individual who would otherwise be exempt from 
                        participation in the program solely by reason 
                        of subparagraph (C)(iii)), require such parent 
                        to participate in a JOBS activity (including a 
                        work activity) approved by the State;
                            ``(iii) establish criteria in accordance 
                        with regulations of the Secretary under which a 
                        custodial parent described in clauses (i) and 
                        (ii) who has not attained 20 years of age may 
                        be exempted from the requirements under such 
                        clause but the number of such parents exempted 
                        from such requirements shall not exceed 50 
                        percent in fiscal year 2000 or any fiscal year 
                        thereafter; and
                            ``(iv) at the option of the State, some or 
                        all custodial parents who are under age 20 (and 
                        pregnant women under age 20) who are receiving 
                        aid under this part will be required to 
                        participate in a program of monetary incentives 
                        and penalties, consistent with subsection 
                        (j);''.
    (b) State Option To Provide Additional Incentives and Penalties To 
Encourage Teenage Parents To Complete High School--Section 402 (42 
U.S.C. 602) is amended by adding at the end the following new 
subsection:
    ``(j)(1) If a State chooses to conduct a program of monetary 
incentives and penalties to encourage custodial parents (and pregnant 
women) who are under age 20 to complete their high school (or 
equivalent) education, and participate in parenting activities, the 
State shall amend its State plan--
            ``(A) to specify the one or more political subdivisions in 
        which the State will conduct the program (or other clearly 
        defined geographic area or areas), and
            ``(B) to describe its program in detail.
    ``(2) A program under this subsection--
            ``(A) may, at the option of the State, include all such 
        parents who are under age 21;
            ``(B) may, at the option of the State, require full-time 
        participation in secondary school or equivalent educational 
        activities, or participation in a course or program leading to 
        a skills certificate found appropriate by the State agency or 
        parenting education activities (or any combination of such 
        activities and secondary education);
            ``(C) shall require that the case manager assigned to the 
        custodial parent pursuant to paragraph (3) or (4) of section 
        482(b) will review the needs of such parent and will assure 
        that, either in the initial development or revision of the 
        parent's employability plan, there will be included a 
        description of the services that will be provided to the parent 
        and the way in which the case manager and service providers 
        will coordinate with the educational or skills training 
        activities in which the custodial parent is participating;
            ``(D) shall provide monetary incentives for more than 
        minimally acceptable performance of required educational 
        activities; and
            ``(E) shall provide penalties which may be those required 
        by subsection (a)(19)(G) or, with the approval of the 
        Secretary, other monetary penalties that the State finds will 
        better achieve the objectives of the program.
    ``(3) When a monetary incentive is payable because of the more than 
minimally acceptable performance of required educational activities by 
a custodial parent, the incentive shall be paid directly to such 
parent, regardless of whether the State agency makes payment of aid 
under the State plan directly to such parent.
    ``(4)(A) For purposes of this part, monetary incentives paid under 
this subsection shall be considered aid to families with dependent 
children.
    ``(B) For purposes of any other Federal or federally assisted 
program based on need, no monetary incentive paid under this subsection 
shall be considered income in determining a family's eligibility for or 
amount of benefits under such program, and if aid is reduced by reason 
of a penalty under this subsection, such other program shall treat the 
family involved as if no such penalty has been applied.
    ``(5) The State agency shall from time to time provide such 
information as the Secretary may request, and otherwise cooperate with 
the Secretary, in order to permit evaluation of the effectiveness on a 
broad basis of the State's program conducted under this subsection.''.
    (c) Effective Date.--The amendments made by this section shall be 
effective with respect to calendar quarters beginning on or after 
October 1, 1996.

SEC. 203. LIVING ARRANGEMENT REQUIREMENTS.

    (a) In General.--Section 402(a)(43) (42 U.S.C. 602(a)(43)) is 
amended--
            (1) in the matter preceding subparagraph (A), by striking 
        ``at the option of the State,'',
            (2) in subparagraph (A), by redesignating clauses (i) and 
        (ii) as subclauses (I) and (II), respectively,
            (3) by striking ``(A) subject to subparagraph (B),'' and 
        inserting ``(A)(i) subject to clause (ii),'',
            (4) in subclause (II) of subparagraph (A)(i), as 
        redesignated--
                    (A) by striking ``(where possible)'', and
                    (B) by striking ``or other adult relative'' and 
                inserting ``other adult relative, or other adult 
                supervising the living arrangement'', and
            (5) by striking subparagraph (B) and inserting the 
        following:
                    ``(ii) clause (i) does not apply in any case in 
                which the State agency--
                            ``(I) determines that the physical or 
                        emotional health or safety of such individual 
                        or such dependent child would be jeopardized if 
                        such individual and such dependent child lived 
                        in the same residence with such individual's 
                        own parent or legal guardian; or
                            ``(II) otherwise determines in accordance 
                        with regulations issued by the Secretary that 
                        there is good cause for waiving such clause; 
                        and
                    ``(B) if an individual is not residing in an 
                alternative adult-supervised living arrangement that is 
                approved by the State agency, the State agency (in 
                consultation with the child welfare agency) is required 
                to assist the individual in locating an appropriate 
                living arrangement;''.
    (b) Effective Date.--The amendments made by this section shall be 
effective with respect to calendar quarters beginning on or after 
October 1, 1997.

                     Subtitle B--State Flexibility

       PART I--ESTABLISHMENT OF INTERAGENCY WELFARE REVIEW BOARD

SEC. 211. INTERAGENCY WELFARE REVIEW BOARD.

    (a) Establishment and Purpose.--In order to facilitate the 
consideration of welfare program requirement waiver requests that 
involve more than 1 Federal department or agency, there is established 
an Interagency Welfare Review Board (hereafter in this part referred to 
as the ``Board'').
    (b) Membership.--The Board shall consist of the following members:
            (1) The Secretary of Agriculture (or the designee of the 
        Secretary).
            (2) The Secretary of Health and Human Services (or the 
        designee of the Secretary).
            (3) The Secretary of Housing and Urban Development (or the 
        designee of the Secretary).
            (4) The Secretary of Labor (or the designee of the 
        Secretary).
            (5) The Secretary of Education (or the designee of the 
        Secretary).
            (6) Such other individuals as the President determines 
        appropriate.
    (c) Chairperson.--The President shall appoint 1 member of the Board 
to serve as Chairperson of the Board.
    (d) Vacancies.--A vacancy in the position of Chairperson shall be 
filled in the manner in which the original appointment was made.
    (e) No Additional Compensation.--The members of the Board may not 
be provided additional pay, allowances, or benefits by reason of their 
service on the Board.
    (f) Powers.--
            (1) Assistance of other federal entities.--A member of the 
        Board shall detail to the Chairperson, on a nonreimbursable 
        basis, such officers and employees of the department or agency 
        headed by the member, and shall make available to the 
        Chairperson such assistance as the Chairperson may require to 
        carry out the activities of the Board.
            (2) Use of united states mails.--The Chairperson may use 
        the United States mails in the same manner and under the same 
        conditions as other departments and agencies of the United 
        States.
    (g) Duties.--
            (1) In general.--The Board shall act as the central 
        organization for coordinating the review of applications 
        submitted under section 212 by States for waivers from the 
        requirements of eligible Federal low-income assistance programs 
        that involve more than 1 department or agency of the Federal 
        Government.
            (2) Duty to provide technical assistance.--The Board shall 
        provide assistance and technical advice to entities submitting 
        applications under section 212 and implementing an assistance 
        plan under an application approved under section 213.

SEC. 212. WAIVER APPLICATION.

    Any State that is receiving or is eligible to receive funds or 
other assistance under eligible Federal low-income assistance programs 
involving more than 1 Federal department or agency and desires a waiver 
authorized by law from the Federal requirements with respect to such 
programs may submit to the Board an application for such waiver. The 
application shall be submitted in the form and manner prescribed by the 
Board.

SEC. 213. REVIEW AND APPROVAL OF APPLICATIONS.

    (a) Review of Applications.--The Board shall review a waiver 
application submitted under section 212 and issue an advisory opinion 
with respect to such waiver application. Final decisions with respect 
to the waiver application shall be made by the Secretaries of the 
departments or agencies that have responsibility for administering the 
programs with respect to which the waiver is sought.
    (b) Action on Application.--The Board shall establish a schedule 
for the consideration of a waiver application submitted under section 
212, to assure that the State will receive a final decision from the 
Secretaries described in subsection (a) on the waiver application not 
later than 90 days after the date the completed application is received 
by the Board.

SEC. 214. DEFINITION OF STATE.

    (a) In General.--For purposes of this part, the term ``State'' 
means any of the 50 States, the District of Columbia, Puerto Rico, 
American Samoa, Guam, and the Virgin Islands.
    (b) Indian Tribes.--In the case of an eligible Federal low-income 
assistance program under which aid or assistance is provided with 
respect to an Indian tribe, the Indian tribal organization is deemed to 
be a State for purposes of this part.

           PART II--ADDITIONAL PROVISIONS CONCERNING WAIVERS

SEC. 221. SCHEDULE FOR CONSIDERATION OF WAIVER APPLICATIONS.

    Section 1115 (42 U.S.C. 1315) is amended--
            (1) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively;
            (2) by striking ``(a) In'' and inserting ``(a)(1) In''; and
            (3) by adding at the end the following new paragraph:
    ``(2) Not later than 90 days after the date a completed application 
from a State for a waiver under paragraph (1) is received by the 
Secretary, the Secretary shall approve or disapprove such application. 
In considering an application for a waiver, there shall be a 
presumption for approval in the case of a request for a waiver that is 
similar in substance and scale to one that the Secretary has previously 
approved.''.
SEC. 222. STATE AUTHORITY TO ESTABLISH CERTAIN AFDC RULES.

    (a) In General.--Section 1115 (42 U.S.C. 1315) is amended by adding 
at the end the following new subsection:
    ``(e)(1) Any State having an approved plan under part A of title IV 
may, without receiving a waiver from the Secretary pursuant to this 
section or otherwise, establish any of the program changes described in 
paragraph (2) for purposes of providing aid or assistance under part A 
of such title.
    ``(2) The program changes described in this paragraph are the 
following:
            ``(A) Income and resource requirements other than those 
        specified in section 402(a)(7) in order to test the effect of 
        such requirements on an individual's effort to obtain 
        employment.
            ``(B) Requirements relating to the disregard of income 
        other than those specified in section 402(a)(8).
            ``(C) Standards for defining unemployment other than those 
        prescribed by the Secretary pursuant to section 407(a).
            ``(D) Rules for the eligibility for aid or assistance under 
        part A of title IV of an unemployed parent without regard to 
        section 407(b)(1)(A)(iii).
    ``(3)(A) The Secretary shall evaluate a sufficient number of the 
program changes described in paragraph (2) which are established by a 
State in order to determine the impact of such changes on the receipt 
of aid to families with dependent children program under part A of 
title IV in such State, earnings achieved, costs to the Federal and 
State governments, and such other factors as the Secretary may 
determine.
    ``(B) Any State chosen by the Secretary for an evaluation under 
subparagraph (A) shall cooperate with such evaluation.
    ``(C) There are authorized to be appropriated such sums as may be 
necessary for the purpose of conducting evaluations under this 
paragraph.
    ``(4) The authority provided by paragraphs (1) and (2) of this 
subsection shall expire 5 years after the date on which this subsection 
takes effect.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect on October 1, 1996.

SEC. 223. WAIVER AUTHORITY FOR THE JOBS PROGRAM.

    Section 1115(a) (42 U.S.C. 1315(a)) is amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``part A or D of title IV'' and inserting ``part A, D, or F of 
        title IV'';
            (2) in paragraph (1), by inserting ``482,'' after ``454,''; 
        and
            (3) in paragraph (2), by inserting ``402(g),'' after 
        ``section 3,''.
                  TITLE III--CHILD SUPPORT ENFORCEMENT

SEC. 300. SHORT TITLE.

    This title may be cited as the ``Interstate Child Support 
Responsibility Act of 1995''.

    Subtitle A--Improvements to the Child Support Collection System

  PART I--ELIGIBILITY AND OTHER MATTERS CONCERNING TITLE IV-D PROGRAM 
                                CLIENTS

SEC. 301. COOPERATION REQUIREMENT AND GOOD CAUSE EXCEPTION.

    (a) Child Support Enforcement Requirements.--Section 454 is 
amended--
            (1) by striking ``and'' at the end of paragraph (23);
            (2) by striking the period at the end of paragraph (24) and 
        inserting ``; and''; and
            (3) by adding after paragraph (24) the following new 
        paragraph:
            ``(25) provide that the State agency administering the plan 
        under this part--
                    ``(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 efforts to establish paternity 
                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 as to cooperation 
                or good cause at appropriate intervals; 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 provision--
                            ``(i) will not determine (or redetermine) 
                        the mother of such child to be cooperating with 
                        efforts to establish paternity unless the 
                        mother 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 the person named 
                                as the putative father (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 enable service of process on such 
                                person); and
                            ``(ii) in the case of a caretaker who is 
                        not the mother and who is receiving payments 
                        for the child under part A, will determine (or 
                        redetermine) such caretaker to be reasonably 
                        cooperating with efforts to establish paternity 
                        under regulations prescribed by the Secretary; 
                        and
                    ``(F)(i) (where a custodial parent who was 
                initially determined not to be cooperating (or to have 
                good cause not to cooperate) 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 of title XIX 
                that this eligibility condition has been met; and
                    ``(ii) (where 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 (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) is amended by striking ``furnishing 
        of'' and inserting ``application for''.
            (2) Section 402(a)(26) is amended--
                    (A) in each of subparagraphs (A) and (B), by 
                redesignating clauses (i) and (ii) as subclauses (I) 
                and (II);
                    (B) by indenting and redesignating subparagraphs 
                (A), (B), and (C) as clauses (i), (ii), and (iv), 
                respectively;
                    (C) in clause (ii), as redesignated--
                            (i) by striking ``is claimed, or in 
                        obtaining any other payments or property due 
                        such applicant or such child,'' and inserting 
                        ``is claimed;''; and
                            (ii) by striking ``unless'' and all that 
                        follows through ``aid is claimed; and'';
                    (D) by adding after clause (ii) the following new 
                clause:
                            ``(iii) to cooperate with the State in 
                        obtaining any other payments or property due 
                        such applicant or such child; and'';
                    (E) in the matter preceding clause (i), as 
                redesignated, to read as follows:
            ``(26) provide--
                    ``(A) that, as a condition of eligibility for aid, 
                each applicant or recipient will be required (subject 
                to subparagraph (C))--'';
                    (F) in subparagraph (A)(iv), as redesignated, by 
                striking ``, unless such individual'' and all that 
                follows through ``individuals involved'';
                    (G) by adding at the end the following new 
                subparagraphs:
                    ``(B) that the State agency will immediately refer 
                each applicant 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) that (except as provided in subparagraph (E)) 
                an applicant 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 
                applicant--
                            ``(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; and''; and
                    (H)(i) by relocating and redesignating as 
                subparagraph (F) the text at the end of subparagraph 
                (A)(ii) beginning with ``that, if the relative'' and 
                all that follows through the semicolon;
                    (ii) in subparagraph (F), as so redesignated and 
                relocated, by striking ``subparagraphs (A) and (B) of 
                this paragraph'' and inserting ``subparagraph (A)''; 
                and
                    (iii) by striking ``and'' at the end of 
                subparagraph (a)(ii).
    (c) Medicaid Amendments.--Section 1912(a) is amended--
            (1) in paragraph (1)(B), by inserting ``(except as provided 
        in paragraph (2))'' after ``to cooperate with the State'';
            (2) in subparagraphs (B) and (C) of paragraph (1) by 
        striking ``, unless'' and all that follows and inserting a 
        semicolon; and
            (3) by redesignating paragraph (2) as paragraph (5), and 
        inserting after paragraph (1) the following new paragraphs:
            ``(2) provide that the State agency will immediately refer 
        each 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) provide that (except as provided in paragraph (5)) an 
        applicant 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 applicant--
                    ``(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) Effective Date.--The amendments made by this section shall be 
effective with respect to applications filed in or after the first 
calendar quarter beginning 10 months or more after the date of the 
enactment of this Act (or such earlier quarter as the State may select) 
for aid under part A of title IV of the Social Security Act or for 
medical assistance under title XIX of such Act.

SEC. 302. STATE OBLIGATION TO PROVIDE PATERNITY ESTABLISHMENT AND CHILD 
              SUPPORT ENFORCEMENT SERVICES.

    (a) State Law Requirements.--Section 466(a) (42 U.S.C. 666(a)) is 
amended by adding at the end the following new paragraph:
            ``(12) Procedures under which--
                    ``(A) every child support order established or 
                modified in the State on or after October 1, 1998, is 
                recorded in the central case registry established in 
                accordance with section 454A(e); and
                    ``(B) child support payments are collected through 
                the centralized collections unit established in 
                accordance with section 454B--
                            ``(i) on and after October 1, 1998, under 
                        each order subject to wage withholding under 
                        section 466(b); and
                            ``(ii) on and after October 1, 1999, under 
                        each other order required to be recorded in 
                        such central case registry under this paragraph 
                        or section 454A(e)--
                                    ``(I) if requested by either party 
                                subject to such order, or
                                    ``(II) at the option of the State, 
                                regardless of whether application is 
                                made for services under this part.''.
    (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 to provide 
        appropriate services under this part to--
                    ``(A) 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
                    ``(B) each child not described in subparagraph 
                (A)--
                            ``(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, if application is made for 
                        services under this part;''; and
            (2) in paragraph (6)--
                    (A) by striking ``(6) provide that'' and all that 
                follows through subparagraph (A) 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) in subparagraph (B)--
                            (i) by inserting ``on individuals not 
                        receiving assistance under part A'' after 
                        ``such services shall be imposed''; and
                            (ii) by inserting ``but no fees or costs 
                        shall be imposed on any absent or custodial 
                        parent or other individual for inclusion in the 
                        central State registry maintained pursuant to 
                        section 454A(e)''; and
                    (C) in each of subparagraphs (B), (C), (D), and 
                (E), by indenting such subparagraph and aligning its 
                left margin with the left margin of subparagraph (A); 
                and
                    (D) in each of subparagraphs (B), (C), and (D), by 
                striking the final comma and inserting a semicolon.
    (c) Conforming Amendments.--
            (1) Paternity establishment percentage.--Section 
        452(g)(2)(A) (42 U.S.C. 652(g)(2)(A)) is amended by striking 
        ``454(6)'' each place it appears and inserting 
        ``454(4)(A)(ii)''.
            (2) State plan.--Section 454(23) (42 U.S.C. 654(23)) is 
        amended, effective October 1, 1998, by striking ``information 
        as to any application fees for such services and''.
            (3) Procedures to improve enforcement.--Section 
        466(a)(3)(B) (42 U.S.C. 666(a)(3)(B)) is amended by striking 
        ``in the case of overdue support which a State has agreed to 
        collect under section 454(6)'' and inserting ``in any other 
        case''.
            (4) Definition of overdue support.--Section 466(e) (42 
        U.S.C. 666(e)) is amended by striking ``or (6)''.

SEC. 303. DISTRIBUTION OF PAYMENTS.

    (a) Distributions Through State Child Support Enforcement Agency to 
Former Assistance Recipients.--Section 454(5) (42 U.S.C. 654(5)) is 
amended--
            (1) in subparagraph (A)--
                    (A) by inserting ``except as otherwise specifically 
                provided in section 464 or 466(a)(3),'' after ``is 
                effective,''; and
                    (B) by striking ``except that'' and all that 
                follows through the semicolon; and
            (2) in subparagraph (B), by striking ``, except'' and all 
        that follows through ``medical assistance''.
    (b) Distribution to a Family Currently Receiving AFDC.--Section 457 
(42 U.S.C. 657) is amended--
            (1) by striking subsection (a) and redesignating subsection 
        (b) as subsection (a);
            (2) in subsection (a), as redesignated--
                    (A) in the matter preceding paragraph (2), to read 
                as follows:
    ``(a) In the Case of a Family Receiving AFDC.--Amounts collected 
under this part during any month as support of a child who is receiving 
assistance under part A (or a parent or caretaker relative of such a 
child) shall (except in the case of a State exercising the option under 
subsection (b)) be distributed as follows:
            ``(1) an amount equal to the amount that will be 
        disregarded pursuant to section 402(a)(8)(A)(vi) shall be taken 
        from each of--
                    ``(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) in paragraph (4), by striking ``or (B)'' and 
                all that follows through the period and inserting ``; 
                then (B) from any remainder, amounts equal to 
                arrearages of such support obligations assigned, 
                pursuant to part A, to any other State or States shall 
                be paid to such other State or States and used to pay 
                any such arrearages (with appropriate reimbursement of 
                the Federal Government to the extent of its 
                participation in the financing); and then (C) any 
                remainder shall be paid to the family.''; and
            (3) by inserting after subsection (a), as redesignated, the 
        following new subsection:
    ``(b) Alternative Distribution in Case of Family Receiving AFDC.--
In the case of a State electing the option under this subsection, 
amounts collected as described in subsection (a) shall be distributed 
as follows:
            ``(1) an amount equal to the amount that will be 
        disregarded pursuant to section 402(a)(8)(A)(vi) shall be taken 
        from each of--
                    ``(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;
            ``(2) second, from any remainder, amounts equal to the 
        balance of support owed for the current month shall be paid to 
        the family;
            ``(3) third, from any remainder, amounts equal to 
        arrearages of such support obligations assigned, pursuant to 
        part A, to the State making the collection shall be retained 
        and used by such State to pay any such arrearages (with 
        appropriate reimbursement of the Federal Government to the 
        extent of its participation in the financing);
            ``(4) fourth, from any remainder, amounts equal to 
        arrearages of such support obligations assigned, pursuant to 
        part A, to any other State or States shall be paid to such 
        other State or States and used to pay any such arrearages (with 
        appropriate reimbursement of the Federal Government to the 
        extent of its participation in the financing); and
            ``(5) fifth, any remainder shall be paid to the family.''.
    (c) Distribution to a Family Not Receiving AFDC.--
            (1) In general.--Section 457(c) (42 U.S.C. 657(c)) is 
        amended to read as follows:
    ``(c) 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 assistance under part A (or of a parent 
or caretaker relative of such a child) shall (subject to the remaining 
provisions of this section) be distributed as follows:
            ``(1) first, amounts equal to the total of such support 
        owed for such month shall be paid to the family;
            ``(2) second, from any remainder, amounts equal to 
        arrearages of such support obligations for months during which 
        such child did not receive assistance under part A shall be 
        paid to the family;
            ``(3) third, from any remainder, amounts equal to 
        arrearages of such support obligations assigned to the State 
        making the collection pursuant to part A shall be retained and 
        used by such State to pay any such arrearages (with appropriate 
        reimbursement of the Federal Government to the extent of its 
        participation in the financing); and
            ``(4) fourth, from any remainder, amounts equal to 
        arrearages of such support obligations assigned to any other 
        State pursuant to part A shall be paid to such other State or 
        States, and used to pay such arrearages, in the order in which 
        such arrearages accrued (with appropriate reimbursement of the 
        Federal Government to the extent of its participation in the 
        financing).''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall become effective on October 1, 1999.
    (d) Distribution to a Child Receiving Assistance Under Title IV-
E.--Section 457(d) (42 U.S.C. 657(d)) is amended, in the matter 
preceding paragraph (1), by striking ``Notwithstanding the preceding 
provisions of this section, amounts'' and inserting the following:
    ``(d) Distributions In Case of a Child Receiving Assistance Under 
Title IV-E.--Amounts''.
    (e) Regulations.--The Secretary of Health and Human Services shall 
promulgate regulations--
            (1) under part D of title IV of the Social Security Act, 
        establishing a uniform nationwide standard for allocation of 
        child support collections from an obligor owing support to more 
        than 1 family; and
            (2) under part A of such title, establishing standards 
        applicable to States electing the alternative formula under 
        section 457(b) of such Act for distribution of collections on 
        behalf of families receiving Aid to Families with Dependent 
        Children, designed to minimize irregular monthly payments to 
        such families.
    (f) Clerical Amendments.--Section 454 (42 U.S.C. 654) is amended--
            (1) in paragraph (11)--
                    (A) by striking ``(11)'' and inserting ``(11)(A)''; 
                and
                    (B) by inserting after the semicolon ``and''; and
            (2) by redesignating paragraph (12) as subparagraph (B) of 
        paragraph (11).

SEC. 304. RIGHTS TO NOTIFICATION AND HEARINGS.

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

SEC. 305. PRIVACY SAFEGUARDS.

    (a) State Plan Requirement.--Section 454 (42 U.S.C. 454), as 
amended by section 301(a), is amended--
            (1) by striking ``and'' at the end of paragraph (24);
            (2) by striking the period at the end of paragraph (25) and 
        inserting ``; and''; and
            (3) by adding after paragraph (25) the following:
            ``(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 parties, including--
                    ``(A) safeguards against unauthorized use or 
                disclosure of information relating to proceedings or 
                actions to establish paternity, or to establish or 
                enforce support;
                    ``(B) prohibitions on the release of information on 
                the whereabouts of 1 party to another party against 
                whom a protective order with respect to the former 
                party has been entered; and
                    ``(C) prohibitions on the release of information on 
                the whereabouts of 1 party to another party if the 
                State has reason to believe that the release of the 
                information may result in physical or emotional harm to 
                the former party.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
become effective on October 1, 1997.

              PART II--PROGRAM ADMINISTRATION AND FUNDING

SEC. 311. FEDERAL MATCHING PAYMENTS.

    (a) Increased Base Matching Rate.--Section 455(a)(2) (42 U.S.C. 
655(a)(2)) is amended to read as follows:
            ``(2) The applicable percent for a quarter for purposes of 
        paragraph (1)(A) is--
                    ``(A) for fiscal years 1997 and 1998, 66 percent, 
                and
                    ``(B) for fiscal year 1999 and succeeding fiscal 
                years, 75 percent.''.
    (b) Maintenance of Effort.--Section 455 (42 U.S.C. 655) is 
amended--
            (1) in subsection (a)(1), in the matter preceding 
        subparagraph (A), by striking ``From'' and inserting ``Subject 
        to subsection (c), from''; and
            (2) by inserting after subsection (b) the following new 
        subsection:
    ``(c) Notwithstanding the provisions of subsection (a), total 
expenditures for the State program under this part for fiscal year 1997 
and each succeeding fiscal year (excluding 1-time capital expenditures 
for automation), reduced by the percentage specified for such fiscal 
year under subsection (a)(2) shall not be less than such total 
expenditures for fiscal year 1996, reduced by 66 percent.''.

SEC. 312. PERFORMANCE-BASED INCENTIVES AND PENALTIES.

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

                ``incentive adjustments to matching rate

    ``Sec. 458. (a) Incentive Adjustment.--
            ``(1) In general.--In order to encourage and reward State 
        child support enforcement programs which perform in an 
        effective manner, the Federal matching rate for payments to a 
        State under section 455(a)(1)(A), for each fiscal year 
        beginning on or after October 1, 1998, shall be increased by a 
        factor reflecting the sum of the applicable incentive 
        adjustments (if any) determined in accordance with regulations 
        under this section with respect to Statewide paternity 
        establishment and to overall performance in child support 
        enforcement.
            ``(2) Standards.--
                    ``(A) In general.--The Secretary shall specify in 
                regulations--
                            ``(i) the levels of accomplishment, and 
                        rates of improvement as alternatives to
                         such levels, which States must attain to 
qualify for incentive adjustments under this section; and
                            ``(ii) the amounts of incentive adjustment 
                        that shall be awarded to States achieving 
                        specified accomplishment or improvement levels, 
                        which amounts shall be graduated, ranging up 
                        to--
                                    ``(I) 5 percentage points, in 
                                connection with Statewide paternity 
                                establishment; and
                                    ``(II) 10 percentage points, in 
                                connection with overall performance in 
                                child support enforcement.
                    ``(B) Limitation.--In setting performance standards 
                pursuant to subparagraph (A)(i) and adjustment amounts 
                pursuant to subparagraph (A)(ii), the Secretary shall 
                ensure that the aggregate number of percentage point 
                increases as incentive adjustments to all States do not 
                exceed such aggregate increases as assumed by the 
                Secretary in estimates of the cost of this section as 
                of June 1995, unless the aggregate performance of all 
                States exceeds the projected aggregate performance of 
                all States in such cost estimates.
            ``(3) Determination of incentive adjustment.--The Secretary 
        shall determine the amount (if any) of incentive adjustment due 
        each State on the basis of the data submitted by the State 
        pursuant to section 454(15)(B) concerning the levels of 
        accomplishment (and rates of improvement) with respect to 
        performance indicators specified by the Secretary pursuant to 
        this section.
            ``(4) Fiscal year subject to incentive adjustment.--The 
        total percentage point increase determined pursuant to this 
        section with respect to a State program in a fiscal year shall 
        apply as an adjustment to the applicable percent under section 
        455(a)(2) for payments to such State for the succeeding fiscal 
        year.
            ``(5) Recycling of incentive adjustment.--A State shall 
        expend in the State program under this part all funds paid to 
        the State by the Federal Government as a result of an incentive 
        adjustment under this section.
    ``(b) Meaning of Terms.--
            ``(1) Statewide paternity establishment percentage.--
                    ``(A) In general.--For purposes of this section, 
                the term `Statewide paternity establishment percentage' 
                means, with respect to a fiscal year, the ratio 
                (expressed as a percentage) of--
                            ``(i) the total number of out-of-wedlock 
                        children in the State under 1 year of age for 
                        whom paternity is established or acknowledged 
                        during the fiscal year, to
                            ``(ii) the total number of children 
                        requiring paternity establishment born in the 
                        State during such fiscal year.
                    ``(B) Alternative measurement.--The Secretary shall 
                develop an alternate method of measurement for the 
                Statewide paternity establishment percentage for any 
                State that does not record the out-of-wedlock status of 
                children on birth certificates.
            ``(2) Overall performance in child support enforcement.--
        The term `overall performance in child support enforcement' 
        means a measure or measures of the effectiveness of the State 
        agency in a fiscal year which takes into account factors 
        including--
                    ``(A) the percentage of cases requiring a 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 311(a), is 
amended--
            (1) by striking the period at the end of subparagraph (C) 
        and inserting a comma; and
            (2) by adding after and below subparagraph (C), flush with 
        the left margin of the paragraph, the following:
``increased by the incentive adjustment factor (if any) determined by 
the Secretary pursuant to section 458.''.
    (c) Conforming Amendments.--Section 454(22) (42 U.S.C. 654(22)) is 
amended--
            (1) by striking ``incentive payments'' the first place it 
        appears and inserting ``incentive adjustments''; and
            (2) by striking ``any such incentive payments made to the 
        State for such period'' and inserting ``any increases in 
        Federal payments to the State resulting from such incentive 
        adjustments''.
    (d) Calculation of IV-D Paternity Establishment Percentage.--
            (1) Overall performance.--Section 452(g)(1) (42 U.S.C. 
        652(g)(1)) is amended in the matter preceding subparagraph (A) 
        by inserting ``its overall performance in child support 
        enforcement is satisfactory (as defined in section 458(b) and 
        regulations of the Secretary), and'' after ``1994,''.
            (2) Definition.--Section 452(g)(2)(A) (42 U.S.C. 
        652(g)(2)(A)) is amended, in the matter preceding clause (i)--
                    (A) by striking ``paternity establishment 
                percentage'' and inserting ``IV-D paternity 
                establishment percentage''; and
                    (B) by striking ``(or all States, as the case may 
                be)''.
            (3) Modification of requirements.--Section 452(g)(3) (42 
        U.S.C. 652(g)(3)) is amended--
                    (A) by striking subparagraph (A) and redesignating 
                subparagraphs (B) and (C) as subparagraphs (A) and (B), 
                respectively;
                    (B) in subparagraph (A), as redesignated, by 
                striking ``the percentage of children born out-of-
                wedlock in the State'' and inserting ``the percentage 
                of children in the State who are born out of wedlock or 
                for whom support has not been established''; and
                    (C) in subparagraph (B), as redesignated--
                            (i) by inserting ``and overall performance 
                        in child support enforcement'' after 
                        ``paternity establishment percentages''; and
                            (ii) by inserting ``and securing support'' 
                        before the period.
    (e) Reduction of Payments Under Part D of Title IV.--
            (1) New requirements.--Section 455 (42 U.S.C. 655) is 
        amended--
                    (A) by redesignating subsection (e) as subsection 
                (f); and
                    (B) by inserting after subsection (d) the following 
                new subsection:
    ``(e)(1) Notwithstanding any other provision of law, if the 
Secretary finds, with respect to a State program under this part in a 
fiscal year beginning on or after October 1, 1997--
            ``(A)(i) on the basis of data submitted by a State pursuant 
        to section 454(15)(B), that the State program in such fiscal 
        year failed to achieve the IV-D paternity establishment 
        percentage (as defined in section 452(g)(2)(A)) or the 
        appropriate level of overall performance in child support 
        enforcement (as defined in section 458(b)(2)), or to meet other 
        performance measures that may be established by the Secretary, 
        or
            ``(ii) on the basis of an audit or audits of such State 
        data conducted pursuant to section 452(a)(4)(C), that the State 
        data submitted pursuant to section 454(15)(B) is incomplete or 
        unreliable; and
            ``(B) that, with respect to the succeeding fiscal year--
                    ``(i) the State failed to take sufficient 
                corrective action to achieve the appropriate 
                performance levels as described in subparagraph (A)(i) 
                of this paragraph, or
                    ``(ii) the data submitted by the State pursuant to 
                section 454(15)(B) is incomplete or unreliable,
the amounts otherwise payable to the State under this part for quarters 
following the end of such succeeding fiscal year, prior to quarters 
following the end of the first quarter throughout which the State 
program is in compliance with such performance requirement, shall be 
reduced by the percentage specified in paragraph (2).
    ``(2) The reductions required under paragraph (1) shall be--
            ``(A) not less than 3 nor more than 5 percent, or
            ``(B) not less than 5 nor more than 7 percent, if the 
        finding is the second consecutive finding made pursuant to 
        paragraph (1), or
            ``(C) not less than 7 nor more than 10 percent, if the 
        finding is the third or a subsequent consecutive such finding.
    ``(3) For purposes of this subsection, section 402(a)(27), and 
section 452(a)(4), a State which is determined as a result of an audit 
to have submitted incomplete or unreliable data pursuant to section 
454(15)(B), shall be determined to have submitted adequate data if the 
Secretary determines that the extent of the incompleteness or 
unreliability of the data is of a technical nature which does not 
adversely affect the determination of the level of the State's 
performance.''.
            (2) Conforming amendments.--
                    (A) Payments to states.--Section 403 (42 U.S.C. 
                603) is amended by striking subsection (h).
                    (B) Duties of secretary.--Subsections (d)(3)(A), 
                (g)(1), and (g)(3)(A) of section 452 (42 U.S.C. 652) 
                are each amended by striking ``403(h)'' and inserting 
                ``455(e)''.
    (f) Effective Dates.--
            (1) Incentive adjustments.--
                    (A) In general.--The amendments made by subsections 
                (a), (b), and (c) shall become effective on October 1, 
                1997, except to the extent provided in subparagraph 
                (B).
                    (B) Exception.--Section 458 of the Social Security 
                Act, as in effect prior to the enactment of this 
                section, shall be effective for purposes of incentive 
                payments to States for fiscal years prior to fiscal 
                year 1999.
            (2) Penalty reductions.--
                    (A) In general.--The amendments made by subsection 
                (d) shall become effective with respect to calendar 
                quarters beginning on and after the date of the 
                enactment of this Act.
                    (B) Reductions.--The amendments made by subsection 
                (e) shall become effective with respect to calendar 
                quarters beginning on and after the date which is 1 
                year after the date of the enactment of this Act.

SEC. 313. FEDERAL AND STATE REVIEWS AND AUDITS.

    (a) State Agency Activities.--Section 454 (42 U.S.C. 654) is 
amended--
            (1) in paragraph (14)--
                    (A) by striking ``(14)'' and inserting ``(14)(A)''; 
                and
                    (B) by inserting after the semicolon ``and'';
            (2) by redesignating paragraph (15) as subparagraph (B) of 
        paragraph (14); and
            (3) by inserting after paragraph (14) the following new 
        paragraph:
            ``(15) provide for--
                    ``(A) a process for annual reviews of and reports 
                to the Secretary on the State program under this part--
                            ``(i) which shall include such information 
                        as may be necessary to measure State compliance 
                        with Federal requirements for
                         expedited procedures and timely case 
processing, using such standards and procedures as are required by the 
Secretary; and
                            ``(ii) under which the State agency will 
                        determine the extent to which such program is 
                        in conformity with applicable requirements with 
                        respect to the operation of State programs 
                        under this part (including the status of 
                        complaints filed under the procedure required 
                        under paragraph (12)(B)); and
                    ``(B) a process of extracting from the State 
                automated data processing system and transmitting to 
                the Secretary data and calculations concerning the 
                levels of accomplishment (and rates of improvement) 
                with respect to applicable performance indicators 
                (including IV-D paternity establishment percentages and 
                overall performance in child support enforcement) to 
                the extent necessary for purposes of sections 452(g) 
                and 458.''.
    (b) Federal Activities.--Section 452(a)(4) (42 U.S.C. 652(a)(4)) is 
amended to read as follows:
            ``(4)(A) review data and calculations transmitted by State 
        agencies pursuant to section 454(15)(B) on State program 
        accomplishments with respect to performance indicators for 
        purposes of section 452(g) and 458, and determine the amount 
        (if any) of penalty reductions pursuant to section 455(e) to be 
        applied to the State;
            ``(B) review annual reports by State agencies pursuant to 
        section 454(15)(A) on State program conformity with Federal 
        requirements; evaluate any elements of a State program in which 
        significant deficiencies are indicated by such report on the 
        status of complaints under the State procedure under section 
        454(12)(B); and, as appropriate, provide to the State agency 
        comments, recommendations for additional or alternative 
        corrective actions, and technical assistance; and
            ``(C) conduct audits, in accordance with the government 
        auditing standards of the United States Comptroller General--
                    ``(i) at least once every 3 years (or more 
                frequently, in the case of a State which fails to meet 
                requirements of this part, or of regulations 
                implementing such requirements, concerning performance 
                standards and reliability of program data) to assess 
                the completeness, reliability, and security of the 
                data, and the accuracy of the reporting systems, used 
                for the calculations of performance indicators 
                specified in subsection (g) and section 458;
                    ``(ii) of the adequacy of financial management of 
                the State program, including assessments of--
                            ``(I) whether Federal and other funds made 
                        available to carry out the State program under 
                        this part are being appropriately expended, and 
                        are properly and fully accounted for; and
                            ``(II) whether collections and 
                        disbursements of support payments and program 
                        income are carried out correctly and are 
                        properly and fully accounted for; and
                    ``(iii) for such other purposes as the Secretary 
                may find necessary;''.
    (c) Effective Date.--The amendments made by this section shall be 
effective with respect to calendar quarters beginning on or after the 
date which is 1 year after the enactment of this section.
SEC. 314. REQUIRED REPORTING PROCEDURES.

    (a) Establishment.--Section 452(a)(5) (42 U.S.C. 652(a)(5)) is 
amended by inserting ``, and establish procedures to be followed by 
States for collecting and reporting information required to be provided 
under this part, and establish uniform definitions (including those 
necessary to enable the measurement of State compliance with the 
requirements of this part relating to expedited processes and timely 
case processing) to be applied in following such procedures'' before 
the semicolon.
    (b) State Plan Requirement.--Section 454 (42 U.S.C. 654), as 
amended by sections 301(a) and 305(a), 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:
            ``(27) provide that the State shall use the definitions 
        established under section 452(a)(5) in collecting and reporting 
        information as required under this part.''.

SEC. 315. AUTOMATED DATA PROCESSING REQUIREMENTS.

    (a) Revised Requirements.--
            (1) State plan.--Section 454(16) (42 U.S.C. 654(16)) is 
        amended--
                    (A) by striking ``, at the option of the State,'';
                    (B) by inserting ``and operation by the State 
                agency'' after ``for the establishment'';
                    (C) by inserting ``meeting the requirements of 
                section 454A'' after ``information retrieval system'';
                    (D) by striking ``in the State and localities 
                thereof, so as (A)'' and inserting ``so as'';
                    (E) by striking ``(i)''; and
                    (F) by striking ``(including, but not limited to,'' 
                and all that follows and to the semicolon.
            (2) Automated data processing.--Part D of title IV (42 
        U.S.C. 651-669) is amended by inserting after section 454 the 
        following new section:

                      ``automated data processing

    ``Sec. 454A. (a) In General.--In order to meet the requirements of 
this section, for purposes of the requirement of section 454(16), a 
State agency shall have in operation a single statewide automated data 
processing and information retrieval system which has the capability to 
perform the tasks specified in this section, and performs such tasks 
with the frequency and in the manner specified in this part or in 
regulations or guidelines of the Secretary.
    ``(b) Program Management.--The automated system required under this 
section shall perform such functions as the Secretary may specify 
relating to management of the program under this part, including--
            ``(1) controlling and accounting for use of Federal, State, 
        and local funds to carry out such program; and
            ``(2) maintaining the data necessary to meet Federal 
        reporting requirements on a timely basis.
    ``(c) Calculation of Performance Indicators.--In order to enable 
the Secretary to determine the incentive and penalty adjustments 
required by sections 452(g) and 458, the State agency shall--
            ``(1) use the automated system--
                    ``(A) to maintain the requisite data on State 
                performance with respect to paternity establishment and 
                child support enforcement in the State; and
                    ``(B) to calculate the IV-D paternity establishment 
                percentage and overall performance in child support 
                enforcement for the State for each fiscal year; and
            ``(2) have in place systems controls to ensure the 
        completeness, and reliability of, and ready access to, the data 
        described in paragraph (1)(A), and the accuracy of the 
        calculations described in paragraph (1)(B).
    ``(d) Information Integrity and Security.--The State agency shall 
have in effect safeguards on the integrity, accuracy, and completeness 
of, access to, and use of data in the automated system required under 
this section, which shall include the following (in addition to such 
other safeguards as the Secretary specifies in regulations):
            ``(1) Policies restricting access.--Written policies 
        concerning access to data by State agency personnel, and 
        sharing of data with other persons, which--
                    ``(A) permit access to and use of data only to the 
                extent necessary to carry out program responsibilities;
                    ``(B) specify the data which may be used for 
                particular program purposes, and the personnel 
                permitted access to such data; and
                    ``(C) ensure that data obtained or disclosed for a 
                limited program purpose is not used or redisclosed for 
                another, impermissible purpose.
            ``(2) Systems controls.--Systems controls (such as 
        passwords or blocking of fields) to ensure strict adherence to 
        the policies specified under paragraph (1).
            ``(3) Monitoring of access.--Routine monitoring of access 
        to and use of the automated system, through methods such as 
        audit trails and feedback mechanisms, to guard against and 
        promptly identify unauthorized access or use.
            ``(4) Training and information.--The State agency shall 
        have in effect procedures to ensure that all personnel 
        (including State and local agency staff and contractors) who 
        may have access to or be required to use sensitive or 
        confidential program data are fully informed of applicable 
        requirements and penalties, and are adequately trained in 
        security procedures.
            ``(5) Penalties.--The State agency shall have in effect 
        administrative penalties (up to and including dismissal from 
        employment) for unauthorized access to, or disclosure or use 
        of, confidential data.''.
            (3) Regulations.--Section 452 (42 U.S.C. 652) is amended by 
        adding at the end the following new subsection:
    ``(j) The Secretary shall prescribe final regulations for 
implementation of the requirements of section 454A not later than 2 
years after the date of the enactment of this subsection.''.
            (4) Implementation timetable.--Section 454(24) (42 U.S.C. 
        654(24)), as amended by sections 301(a), 305(a)(2) and 
        314(b)(1), is amended to read as follows:
            ``(24) provide that the State will have in effect an 
        automated data processing and information retrieval system--
                    ``(A) by October 1, 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 the Interstate Child Support 
                Responsibility Act of 1995 (but this provision shall 
                not be construed to alter earlier deadlines specified 
                for elements of such system), except that such deadline 
                shall be extended by 1 day for each day (if any) by 
                which the Secretary fails to meet the deadline imposed 
                by section 452(j);''.
    (b) Special Federal Matching Rate for Development Costs of 
Automated Systems.--Section 455(a) (42 U.S.C. 655(a)) is amended--
            (1) in paragraph (1)(B)--
                    (A) by striking ``90 percent'' and inserting ``the 
                percent specified in paragraph (3)'';
                    (B) by striking ``so much of''; and
                    (C) by striking ``which the Secretary'' and all 
                that follows through ``thereof''; and
            (2) by adding at the end the following new paragraph:
    ``(3)(A) The Secretary shall pay to each State, for each quarter in 
fiscal years 1996 through 2001, the percentage specified in 
subparagraph (B) of so much of State expenditures described in 
paragraph (1)(B) as the Secretary finds are for a system meeting the 
requirements specified in section 454(16) and 454A, subject to 
subparagraph (C).
    ``(B) The percentage specified in this subparagraph, for purposes 
of subparagraph (A), is the higher of--
            ``(i) 80 percent, or
            ``(ii) the percentage otherwise applicable to Federal 
        payments to the State under paragraph (1)(A) (as adjusted 
        pursuant to section 458).
    ``(C)(i) The Secretary may not pay more than $260,000,000 in the 
aggregate under this paragraph for fiscal years 1996, 1997, 1998, 1999, 
2000, and 2001.
    ``(ii) The total amount payable to a State under this paragraph for 
fiscal years 1996, 1997, 1998, 1999, 2000, and 2001 shall not exceed 
the limitation determined for the State by the Secretary in 
regulations.
    ``(iii) The regulations referred to in clause (ii) shall prescribe 
a formula for allocating the amount specified in clause (iii) among 
States with plans approved under this part, which shall take into 
account--
            ``(I) the relative size of State caseloads under this part; 
        and
            ``(II) the level of automation needed to meet the automated 
        data processing requirements of this part.''.
    (c) Conforming Amendment.--Section 123(c) of the Family Support Act 
of 1988 (102 Stat. 2352; Public Law 100-485) is repealed.

SEC. 316. DIRECTOR OF CSE PROGRAM; STAFFING STUDY.

    (a) Reporting to Secretary.--Section 452(a) (42 U.S.C. 652(a)) is 
amended in the matter preceding paragraph (1) by striking ``directly''.
    (b) Staffing Studies.--
            (1) Scope.--The Secretary of Health and Human Services (in 
        this subsection referred to as the ``Secretary'') shall, 
        directly or by contract, conduct studies of the staffing of 
        each State child support enforcement program under part D of 
        title IV of the Social Security Act. Such studies shall--
                    (A) include a review of the staffing needs created 
                by requirements for automated data processing, 
                maintenance of a central case registry and centralized 
                collections of child support, and of changes in these 
                needs resulting from changes in such requirements; and
                    (B) examine and report on effective staffing 
                practices used by the States and on recommended 
                staffing procedures.
            (2) Frequency of studies.--The Secretary shall complete the 
        first staffing study required under paragraph (1) not later 
        than October 1, 1997, and may conduct additional studies 
        subsequently at appropriate intervals.
            (3) Report to the congress.--The Secretary shall submit a 
        report to the Congress stating the findings and conclusions of 
        each study conducted under this subsection.
SEC. 317. FUNDING FOR SECRETARIAL ASSISTANCE TO STATE PROGRAMS.

    Section 452 (42 U.S.C. 652), as amended by section 315(a)(3), is 
amended by adding at the end the following new subsection:
    ``(k)(1) There shall be available to the Secretary, from amounts 
appropriated for fiscal year 1996 and each succeeding fiscal year for 
payments to States under this part, the amount specified in paragraph 
(2) for the costs to the Secretary for--
            ``(A) information dissemination and technical assistance to 
        States, training of State and Federal staff, staffing studies, 
        and related activities needed to improve programs (including 
        technical assistance concerning State automated systems);
            ``(B) research, demonstration, and special projects of 
        regional or national significance relating to the operation of 
        State programs under this part; and
            ``(C) operation of the Federal Parent Locator Service under 
        section 453, to the extent such costs are not recovered through 
        user fees.
    ``(2) The amount specified in this paragraph for a fiscal year is 
the amount equal to a percentage of the reduction in Federal payments 
to States under part A on account of child support (including 
arrearages) collected in the preceding fiscal year on behalf of 
children receiving aid under such part A in such preceding fiscal year 
(as determined on the basis of the most recent reliable data available 
to the Secretary as of the end of the third calendar quarter following 
the end of such preceding fiscal year), equal to--
            ``(A) 1 percent, for the activities specified in 
        subparagraphs (A) and (B) of paragraph (1); and
            ``(B) 2 percent, for the activities specified in 
        subparagraph (C) of paragraph (1).''.

SEC. 318. 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:
    ``(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.

                   PART III--LOCATE AND CASE TRACKING

SEC. 321. CENTRAL STATE AND CASE REGISTRY.

    Section 454A, as added by section 315(a)(2), is amended by adding 
at the end the following new subsections:
    ``(e) Central Case Registry.--
            ``(1) In general.--The automated system required under this 
        section shall perform the functions, in accordance with the 
        provisions of this subsection, of a single central registry 
        containing records with respect to each case in which services 
        are being provided by the State agency (including, on and after 
        October 1, 1998, each order specified in section 466(a)(12)), 
        using such standardized data elements (such as names, social 
        security numbers or other uniform identification numbers, dates 
        of birth, and case identification numbers), and containing such 
        other information (such as information on case status) as the 
        Secretary may require.
            ``(2) Payment Records.--Each case record in the central 
        registry shall include a record of--
                    ``(A) the amount of monthly (or other periodic) 
                support owed under the support order, and other amounts 
                due or overdue (including arrearages, interest or late 
                payment penalties, and fees);
                    ``(B) all child support and related amounts 
                collected (including such amounts as fees, late payment 
                penalties, and interest on arrearages);
                    ``(C) the distribution of such amounts collected; 
                and
                    ``(D) the birth date of the child for whom the 
                child support order is entered.
            ``(3) Updating and monitoring.--The State agency shall 
        promptly establish and maintain, and regularly monitor, case 
        records in the registry required by this subsection, on the 
        basis of--
                    ``(A) information on administrative actions and 
                administrative and judicial proceedings and orders 
                relating to paternity and support;
                    ``(B) information obtained from matches with 
                Federal, State, or local data sources;
                    ``(C) information on support collections and 
                distributions; and
                    ``(D) any other relevant information.
    ``(f) Data Matches and Other Disclosures of Information.--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) Data bank of child support orders.--Furnishing to the 
        Data Bank of Child Support Orders established under section 
        453(h) (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 and medicaid agencies.--Exchanging data with 
        State agencies (of the State and of other States) administering 
        the programs under part A and title XIX, as necessary for the 
        performance of State agency responsibilities under this part 
        and under such programs.
            ``(4) Intra- and interstate data matches.--Exchanging data 
        with other agencies of the State, agencies of other States, and 
        interstate information networks, as necessary and appropriate 
        to carry out (or assist other States to carry out) the purposes 
        of this part.''.
SEC. 322. CENTRALIZED COLLECTION AND DISBURSEMENT OF SUPPORT PAYMENTS.

    (a) State Plan Requirement.--Section 454 (42 U.S.C. 654), as 
amended by sections 301(a), 305(a) and 314(b), 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 staff (consisting 
                of State employees), and, at State option, contractors 
                reporting directly to the State agency to monitor and 
                enforce support collections through such centralized 
                unit, including carrying out the automated data 
                processing responsibilities specified in section 
                454A(g) and to impose, as appropriate in particular 
                cases, the administrative enforcement remedies 
                specified in section 466(c)(1).''.
    (b) Establishment of Centralized Collection Unit.--Part D of title 
IV (42 U.S.C. 651-669) is amended by adding after section 454A the 
following new section:

     ``centralized collection and disbursement of support payments

    ``Sec. 454B. (a) In General.--In order to meet the requirement of 
section 454(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 
315(a)(2) and as amended by section 321, is amended by adding at the 
end the following new subsection:
    ``(g) Centralized Collection and Distribution of Support 
Payments.--The automated system required under this section shall be 
used, to the maximum extent feasible, to assist and facilitate 
collections and disbursement of support payments through the 
centralized collections unit operated pursuant to section 454B, through 
the performance of functions including at a minimum--
            ``(1) generation of orders and notices to employers (and 
        other debtors) for the withholding of wages (and other 
        income)--
                    ``(A) within 2 working days after receipt (from the 
                directory of New Hires established under section 453(i) 
                or any other source) of notice of and the income source 
                subject to such withholding; and
                    ``(B) using uniform formats directed by the 
                Secretary;
            ``(2) ongoing monitoring to promptly identify failures to 
        make timely payment; and
            ``(3) automatic use of enforcement mechanisms (including 
        mechanisms authorized pursuant to section 466(c)) where 
        payments are not timely made.''.
    (d) Effective Date.--The amendments made by this section shall 
become effective on October 1, 1998.

SEC. 323. AMENDMENTS CONCERNING INCOME WITHHOLDING.

    (a) Mandatory Income Withholding.--
            (1) From wages.--Section 466(a)(1) (42 U.S.C. 666(a)(1)) is 
        amended to read as follows:
            ``(1)(A) Procedures described in subsection (b) for the 
        withholding from income of amounts payable as support in cases 
        subject to enforcement under the State plan.
            ``(B) Procedures under which all child support orders 
        issued (or modified) before October 1, 1996, and which are not 
        otherwise subject to withholding under subsection (b), shall 
        become subject to withholding from wages as provided in 
        subsection (b) if arrearages occur, without the need for a 
        judicial or administrative hearing.''.
            (2) Repeal of certain provisions concerning arrearages.--
        Section 466(a)(8) (42 U.S.C. 666(a)(8)) is repealed.
            (3) Procedures described.--Section 466(b) (42 U.S.C. 
        666(b)) is amended--
                    (A) in the matter preceding paragraph (1), by 
                striking ``subsection (a)(1)'' and inserting 
                ``subsection (a)(1)(A)'';
                    (B) in paragraph (5), by striking ``a public 
                agency'' and all that follows through the period and 
                inserting ``the State through the centralized 
                collections unit established pursuant to section 454B, 
                in accordance with the requirements of such section 
                454B.'';
                    (C) in paragraph (6)(A)(i)--
                            (i) by inserting ``, in accordance with 
                        timetables established by the Secretary,'' 
                        after ``must be required''; and
                            (ii) by striking ``to the appropriate 
                        agency'' and all that follows through the 
                        period and inserting ``to the State centralized 
                        collections unit within 5 working days after 
                        the date such amount would (but for this 
                        subsection) have been paid or credited to the 
                        employee, for distribution in accordance with 
                        this part.'';
                    (D) in paragraph (6)(A)(ii), by inserting ``be in a 
                standard format prescribed by the Secretary, and'' 
                after ``shall''; and
                    (E) in paragraph (6)(D) to read as follows:
            ``(D) Provision must be made for the imposition of a fine 
        against any employer who--
                    ``(i) discharges from employment, refuses to 
                employ, or takes disciplinary action against any absent 
                parent subject to wage withholding required by this 
                subsection because of the existence of such withholding 
                and the obligations or additional obligations which it 
                imposes upon the employer; or
                    ``(ii) fails to withhold support from wages, or to 
                pay such amounts to the State centralized collections 
                unit in accordance with this subsection.''.
    (b) Conforming Amendment.--Section 466(c) (42 U.S.C. 666(c)) is 
repealed.
    (c) Definition of Terms.--The Secretary of Health and Human 
Services shall promulgate regulations providing definitions, for 
purposes of part D of title IV of the Social Security Act, for the term 
``income'' and for such other terms relating to income withholding 
under section 466(b) of such Act as the Secretary may find it necessary 
or advisable to define.
SEC. 324. LOCATOR INFORMATION FROM INTERSTATE NETWORKS.

    Section 466(a) (42 U.S.C. 666(a)), as amended by section 323(a)(2), 
is amended by inserting after paragraph (7) the following new 
paragraph:
            ``(8) Procedures ensuring that the State will neither 
        provide funding for, nor use for any purpose (including any 
        purpose unrelated to the purposes of this part), any automated 
        interstate network or system used to locate individuals--
                    ``(A) for purposes relating to the use of motor 
                vehicles; or
                    ``(B) providing information for law enforcement 
                purposes (where child support enforcement agencies are 
                otherwise allowed access by State and Federal law),
        unless all Federal and State agencies administering programs 
        under this part (including the entities established under 
        section 453) have access to information in such system or 
        network to the same extent as any other user of such system or 
        network.''.

SEC. 325. EXPANDED FEDERAL PARENT LOCATOR SERVICE.

    (a) Expanded Authority To Locate Individuals and Assets.--Section 
453 (42 U.S.C. 653) is amended--
            (1) in subsection (a), by striking ``information as to the 
        whereabouts'' and all that follows through the period and 
        inserting ``, for the purpose of establishing parentage, 
        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; and
            ``(2) information on the individual's wages (or other 
        income) from, and benefits of, employment (including rights to 
        or enrollment in group health care coverage); and
            ``(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) 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''.
    (e) New Components.--Section 453 (42 U.S.C. 653), as amended by 
subsection (c)(2), is amended by adding at the end the following new 
subsections:
    ``(h) Data Bank of Child Support Orders.--
            ``(1) In general.--Not later than October 1, 1998, in order 
        to assist States in administering their State plans under this 
        part and parts A, F, and G, and for the other purposes 
        specified in this section, the Secretary shall establish and 
        maintain in the Federal Parent Locator Service an automated 
        registry to be known as the Data Bank of Child Support Orders, 
        which shall contain abstracts of child support orders and other 
        information described in paragraph (2) on each case in each 
        State central case registry maintained pursuant to section 
        454A(e), as furnished (and regularly updated), pursuant to 
        section 454A(f), by State agencies administering programs under 
        this part.
            ``(2) Case information.--The information referred to in 
        paragraph (1), as specified by the Secretary, shall include 
        sufficient information (including names, social security 
        numbers or other uniform identification numbers, and State case 
        identification numbers) to identify the individuals who owe or 
        are owed support (or with respect to or on behalf of whom 
        support obligations are sought to be established), and the 
        State or States which have established or modified, or are 
        enforcing or seeking to establish, such an order.
    ``(i) Directory of New Hires.--
            ``(1) In general.--Not later than October 1, 1998, in order 
        to assist States in administering their State plans under this 
        part and parts A, F, and G, and for the other purposes 
        specified in this section, the Secretary shall establish and 
        maintain in the Federal Parent Locator Service an automated 
        directory to be known as the directory of New Hires, 
        containing--
                    ``(A) information supplied by employers on each 
                newly hired individual, in accordance with paragraph 
                (2); and
                    ``(B) information supplied by State agencies 
                administering State unemployment compensation laws, in 
                accordance with paragraph (3).
            ``(2) Employer information.--
                    ``(A) Information required.--Subject to 
                subparagraph (D), each employer shall furnish to the 
                Secretary, for inclusion in the directory under this 
                subsection, not later than 10 days after the date (on 
                or after October 1, 1998) on which the employer hires a 
                new employee (as defined in subparagraph (C)), a report 
                containing the name, date of birth, and social security 
                number of such employee, and the employer 
                identification number of the employer.
                    ``(B) Reporting method and format.--The Secretary 
                shall provide for transmission of the reports required 
                under subparagraph (A) using formats and methods which 
                minimize the burden on employers, which shall include--
                            ``(i) automated or electronic transmission 
                        of such reports;
                            ``(ii) transmission by regular mail; and
                            ``(iii) transmission of a copy of the form 
                        required for purposes of compliance with 
                        section 3402 of the Internal Revenue Code of 
                        1986.
                    ``(C) Employee defined.--For purposes of this 
                paragraph, the term `employee' means any individual 
                subject to the requirement of section 3402(f)(2) of the 
                Internal Revenue Code of 1986.
                    ``(D) Paperwork reduction requirement.--As required 
                by the information resources management policies 
                published by the Director of the Office of Management 
                and Budget pursuant to section 3504(b)(1) of title 44, 
                United States Code, the Secretary, in order to minimize 
                the cost and reporting burden on employers, shall not 
                require reporting pursuant to this paragraph if an 
                alternative reporting mechanism can be developed that 
                either relies on existing Federal or State reporting or 
                enables the Secretary to collect the needed information 
                in a more cost-effective and equally expeditious 
                manner, taking into account the reporting costs on 
                employers.
                    ``(E) Civil money penalty on noncomplying 
                employers.--
                            ``(i) In general.--Any employer 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 agency 
                administering a State unemployment compensation law 
                approved by the Secretary of Labor under the Federal 
                Unemployment Tax Act shall furnish to the Secretary 
                extracts of the reports to the Secretary of Labor 
                concerning the wages and unemployment compensation paid 
                to individuals required under section 303(a)(6), in 
                accordance with subparagraph (B).
                    ``(B) Manner of compliance.--The extracts required 
                under subparagraph (A) shall be furnished to the 
                Secretary on a quarterly basis, with respect to 
                calendar quarters beginning on and after October 1, 
                1996, by such dates, in such format, and containing 
                such information as required by that Secretary in 
                regulations.
    ``(j) Data Matches and Other Disclosures.--
                    ``(1) Verification by social security 
                administration.--
                    ``(A) Transmission of data.--The Secretary shall 
                transmit data on individuals and employers in the 
                registries maintained under this section to the Social 
                Security Administration to the extent necessary for 
                verification in accordance with subparagraph (B).
            ``(B) Verification.--The Commissioner of Social Security 
        shall verify the accuracy of, correct or supply to the extent 
        necessary and feasible, and report to the Secretary, the 
        following information 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 directory of New Hires 
                against the child support order abstracts in the Data 
                Bank of Child Support Orders not less than every 2 
                working days; and
                    ``(B) report information obtained from a match 
                established under subparagraph (A) to concerned State 
                agencies operating programs under this part not later 
                than 2 working days after such match.
            ``(3) Data matches and disclosures of data in all 
        registries for title iv program purposes.--The Secretary 
        shall--
                    ``(A) perform matches of data in each component of 
                the Federal Parent Locator Service
                 maintained under this section against data in each 
other such component (other than the matches required pursuant to 
paragraph (1)), and report information resulting from such matches to 
State agencies operating programs under this part and parts A, F, and 
G; and
                    ``(B) disclose data in such registries to such 
                State agencies,
        to the extent, and with the frequency, that the Secretary 
        determines to be effective in assisting such States to carry 
        out their responsibilities under such programs.
    ``(k) Fees.--
            ``(1) For ssa verification.--The Secretary shall reimburse 
        the Commissioner of Social Security, at a rate negotiated 
        between the Secretary and the Commissioner, the costs incurred 
        by the Commissioner in performing the verification services 
        specified in subsection (j).
            ``(2) For information from sesas.--The Secretary shall 
        reimburse costs incurred by State employment security agencies 
        in furnishing data as required by subsection (i)(3), at rates 
        which the Secretary determines to be reasonable (which rates 
        shall not include payment for the costs of obtaining, 
        compiling, or maintaining such data).
            ``(3) For information furnished to state and federal 
        agencies.--State and Federal agencies receiving data or 
        information from the Secretary pursuant to this section shall 
        reimburse the costs incurred by the Secretary in furnishing 
        such data or information, at rates which the Secretary 
        determines to be reasonable (which rates shall include payment 
        for the costs of obtaining, verifying, maintaining, and 
        matching such data or information).
    ``(l) Restriction on Disclosure and Use.--Data in the Federal 
Parent Locator Service, and information resulting from matches using 
such data, shall not be used or disclosed except as specifically 
provided in this section.
    ``(m) Retention of Data.--Data in the Federal Parent Locator 
Service, and data resulting from matches performed pursuant to this 
section, shall be retained for such period (determined by the 
Secretary) as appropriate for the data uses specified in this section.
    ``(n) Information Integrity and Security.--The Secretary shall 
establish and implement safeguards with respect to the entities 
established under this section designed to--
            ``(1) ensure the accuracy and completeness of information 
        in the Federal Parent Locator Service; and
            ``(2) restrict access to confidential information in the 
        Federal Parent Locator Service to authorized persons, and 
        restrict use of such information to authorized purposes.
    ``(o) Limit on Liability.--The Secretary shall not be liable to 
either a State or an individual for inaccurate information provided to 
a component of the Federal Parent Locator Service and disclosed by the 
Secretary in accordance with this section.''.
    (f) Conforming Amendments.--
            (1) To part d of title iv of the social security act.--
        Section 454(8)(B) (42 U.S.C. 654(8)(B)) is amended to read as 
        follows:
                    ``(B) the Federal Parent Locator Service 
                established under section 453;''.
            (2) To federal unemployment tax act.--Section 3304(16) of 
        the Internal Revenue Code of 1986 (relating to approval of 
        State laws) is amended--
                    (A) by striking ``Secretary of Health, Education, 
                and Welfare'' each place it appears and inserting 
                ``Secretary of Health and Human Services'';
                    (B) in subparagraph (B), by striking ``such 
                information'' and all that follows through the 
                semicolon and inserting ``information furnished under 
                subparagraph (A) or (B) is used only for the purposes 
                authorized under such subparagraph;'';
                    (C) by striking ``and'' at the end of subparagraph 
                (A);
                    (D) by redesignating subparagraph (B) as 
                subparagraph (C); and
                    (E) by inserting after subparagraph (A) the 
                following new subparagraph:
                    ``(B) wage and unemployment compensation 
                information contained in the records of such agency 
                shall be furnished to the Secretary of Health and Human 
                Services (in accordance with regulations promulgated by 
                such Secretary) as necessary for the purposes of the 
                directory of New Hires established under section 453(i) 
                of the Social Security Act, and''.
            (3) To state grant program under title iii of the social 
        security act.--Section 303(a) (42 U.S.C. 503(a)) is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (8);
                    (B) by striking the period at the end of paragraph 
                (9) and inserting ``; and''; and
                    (C) by adding 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 453(i)(3), and 
        compliance with such provisions as such Secretary may find 
        necessary to ensure the correctness and verification of such 
        reports.''.

SEC. 326. USE OF SOCIAL SECURITY NUMBERS.

    (a) State Law Requirement.--Section 466(a) (42 U.S.C. 666(a)), as 
amended by section 302(a), is amended by adding at the end the 
following new paragraph:
            ``(13) Procedures requiring the recording of social 
        security numbers--
                    ``(A) of both parties on marriage licenses and 
                divorce decrees;
                    ``(B) of both parents, on birth records and child 
                support and paternity orders; and
                    ``(C) on all applications for motor vehicle 
                licenses and professional licenses.''.
    (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.''.

           PART IV--STREAMLINING AND UNIFORMITY OF PROCEDURES

SEC. 331. ADOPTION OF UNIFORM STATE LAWS.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 302(a) 
and 326(a), is amended by adding at the end the following new 
paragraph:
            ``(14)(A) Procedures under which the State adopts in its 
        entirety (with the modifications and additions specified in 
        this paragraph) not later than January 1, 1997, and uses on and 
        after such date, the Uniform Interstate Family Support Act, as 
        approved by the National Conference of Commissioners on Uniform 
        State Laws in August 1992.
            ``(B) The State law adopted pursuant to subparagraph (A) 
        shall be applied to any case--
                    ``(i) involving an order established or modified in 
                one State and for which a subsequent modification is 
                sought in another State; or
                    ``(ii) in which interstate activity is required to 
                enforce an order.
            ``(C) The State law adopted pursuant to subparagraph (A) of 
        this paragraph shall contain the following provision in lieu of 
        section 611(a)(1) of the Uniform Interstate Family Support Act 
        described in such subparagraph (A):
            ```(1) the following requirements are met:
                    ```(i) the child, the individual obligee, and the 
                obligor--
                            ```(I) do not reside in the issuing State; 
                        and
                            ```(II) either reside in this State or are 
                        subject to the jurisdiction of this State 
                        pursuant to section 201; and
                    ```(ii) in any case where another State is 
                exercising or seeks to exercise jurisdiction to modify 
                the order, the conditions of section 204 are met to the 
                same extent as required for proceedings to establish 
                orders; or'.
            ``(D) The State law adopted pursuant to subparagraph (A) 
        shall recognize as valid, for purposes of any proceeding 
        subject to such State law, service of process upon persons in 
        the State (and proof of such service) by any means acceptable 
        in another State which is the initiating or responding State in 
        such proceeding.''.
SEC. 332. IMPROVEMENTS TO FULL FAITH AND CREDIT FOR CHILD SUPPORT 
              ORDERS.

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

SEC. 333. STATE LAWS PROVIDING EXPEDITED PROCEDURES.

    (a) State Law Requirements.--Section 466 (42 U.S.C. 666), as 
amended by section 323(b), is amended--
            (1) in subsection (a)(2), in the first sentence, to read as 
        follows: ``Expedited administrative and judicial procedures 
        (including the procedures specified in subsection (c)) for 
        establishing paternity and for establishing, modifying, and 
        enforcing support obligations.''; and
            (2) by adding after subsection (b) the following new 
        subsection:
    ``(c) The procedures specified in this subsection are the 
following:
            ``(1) Procedures which give the State agency the authority 
        (and recognize and enforce the authority of State agencies of 
        other States), without the necessity of obtaining an order from 
        any other judicial or administrative tribunal (but subject to 
        due process safeguards, including (as appropriate) requirements 
        for notice, opportunity to contest the action, and opportunity 
        for an appeal on the record to an independent administrative or 
        judicial tribunal), to take the following actions relating to 
        establishment or enforcement of orders:
                    ``(A) To order genetic testing for the purpose of 
                paternity establishment as provided in section 
                466(a)(5).
                    ``(B) To enter a default order, upon a showing of 
                service of process and any additional showing required 
                by State law--
                            ``(i) establishing paternity, in the case 
                        of any putative father who refuses to submit to 
                        genetic testing; and
                            ``(ii) establishing or modifying a support 
                        obligation, in the case of a parent (or other 
                        obligor or obligee) who fails to respond to 
                        notice to appear at a proceeding for such 
                        purpose.
                    ``(C) To subpoena any financial or other 
                information needed to establish, modify, or enforce an 
                order, and to sanction failure to respond to any such 
                subpoena.
                    ``(D) To require all entities in the State 
                (including for-profit, nonprofit, and governmental 
                employers) 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, and to sanction failure to respond to any 
                such request.
                    ``(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) vital statistics (including 
                                records of marriage, birth, and 
                                divorce);
                                    ``(II) State and local tax and 
                                revenue records (including information 
                                on residence address, employer, income 
                                and assets);
                                    ``(III) records concerning real and 
                                titled personal property;
                                    ``(IV) records of occupational and 
                                professional licenses, and records 
                                concerning the ownership and control of 
                                corporations, partnerships, and other 
                                business entities;
                                    ``(V) employment security records;
                                    ``(VI) records of agencies 
                                administering public assistance 
                                programs;
                                    ``(VII) records of the motor 
                                vehicle department; and
                                    ``(VIII) corrections records.
                            ``(ii) Certain records held by private 
                        entities, including--
                                    ``(I) customer records of public 
                                utilities and cable television 
                                companies; and
                                    ``(II) information (including 
                                information on assets and liabilities) 
                                on individuals who owe or are owed 
                                support (or against or with respect to 
                                whom a support obligation is sought) 
                                held by financial institutions (subject 
                                to limitations on liability of such 
                                entities arising from affording such 
                                access).
                    ``(F) To order income withholding in accordance 
                with subsection (a)(1) and (b) of section 466.
                    ``(G) In cases where support is subject to an 
                assignment under section 402(a)(26), 471(a)(17), or 
                1912, or to a requirement to pay through the 
                centralized collections unit under section 454B) upon 
                providing notice to obligor and obligee, to direct the 
                obligor or other payor to change the payee to the 
                appropriate government entity.
                    ``(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 
                        paragraph (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 establish 
        paternity or to establish, modify, or enforce support orders:
                    ``(A) Procedures under which--
                            ``(i) the parties to any paternity or child 
                        support proceedings are required (subject to 
                        privacy safeguards) to file with the tribunal 
                        before entry of an order, and to update as 
                        appropriate, information on location and 
                        identity (including social security number, 
                        residential and mailing addresses, telephone 
                        number, driver's license number, and name, 
                        address, and telephone number of employer); and
                            ``(ii) in any subsequent child support 
                        enforcement action between the same parties, 
                        the tribunal shall be authorized, upon 
                        sufficient showing that diligent effort has 
                        been made to ascertain such party's current 
                        location, to deem due process requirements for 
                        notice and service of process to be met, with 
                        respect to such party, by delivery to the most 
                        recent residential or employer address so filed 
                        pursuant to clause (i).
                    ``(B) Procedures under which--
                            ``(i) the State agency and any 
                        administrative or judicial tribunal with 
                        authority to hear child support and paternity 
                        cases exerts statewide jurisdiction over the 
                        parties, and orders issued in such cases have 
                        statewide effect; and
                            ``(ii) in the case of a State in which 
                        orders in such cases are issued by local 
                        jurisdictions, a case may be transferred 
                        between jurisdictions in the State without need 
                        for any additional filing by the petitioner, or 
                        service of process upon the respondent, to 
                        retain jurisdiction over the parties.''.
    (b) Exceptions From State Law Requirements.--Section 466(d) (42 
U.S.C. 666(d)) is amended--
            (1) by striking ``(d) If'' and inserting ``(d)(1) Subject 
        to paragraph (2), if''; and
            (2) by adding at the end the following new paragraph:
    ``(2) The Secretary shall not grant an exemption from the 
requirements of--
            ``(A) subsection (a)(5) (concerning procedures for 
        paternity establishment);
            ``(B) subsection (a)(10) (concerning modification of 
        orders);
            ``(C) subsection (a)(12) (concerning recording of orders in 
        the central State case registry);
            ``(D) subsection (a)(13) (concerning recording of social 
        security numbers);
            ``(E) subsection (a)(14) (concerning interstate 
        enforcement); or
            ``(F) subsection (c) (concerning expedited procedures), 
        other than paragraph (1)(A) thereof (concerning establishment 
        or modification of support amount).''.
    (c) Automation of State Agency Functions.--Section 454A, as added 
by section 315(a)(2) and as amended by sections 321 and 322(c), is 
amended by adding at the end the following new subsection:
    ``(h) Expedited Administrative Procedures.--The automated system 
required under this section shall be used, to the maximum extent 
feasible, to implement any expedited administrative procedures required 
under section 466(c).''.

                    PART V--PATERNITY ESTABLISHMENT

SEC. 341. STATE LAWS CONCERNING PATERNITY ESTABLISHMENT.

    (a) State Laws Required.--Section 466(a)(5) (42 U.S.C. 666(a)(5)) 
is amended--
            (1) in subparagraph (B)--
                    (A) by striking ``(B)'' and inserting ``(B)(i)'';
                    (B) in clause (i), as redesignated, by inserting 
                before the period ``, where such request is supported 
                by a sworn statement--
            ``(I) by such party alleging paternity setting forth facts 
        establishing a reasonable possibility of the requisite sexual 
        contact of the parties; or
            ``(II) by such party denying paternity setting forth facts 
        establishing a reasonable possibility of the nonexistence of 
        sexual contact of the parties;''; and
                    (C) by inserting after clause (i) (as redesignated) 
                the following new clause:
            ``(ii) Procedures which require the State agency, in any 
        case in which such agency orders genetic testing--
                    ``(I) to pay the costs of such tests, subject to 
                recoupment (where the State so elects) from the 
                putative father if paternity is established; and
                    ``(II) to obtain additional testing in any case 
                where an original test result is disputed, upon request 
                and advance payment by the disputing party.'';
            (2) by striking subparagraphs (C), (D), (E), and (F) and 
        inserting the following:
            ``(C)(i) Procedures for a simple civil process for 
        voluntarily acknowledging paternity under which the State must 
        provide that, before a mother and a putative father can sign an 
        acknowledgment of paternity, the putative father and the mother 
        must be given notice, orally, in writing, and in a language 
        that each can understand, of the alternatives to, the legal 
        consequences of, and the rights (including, if 1 parent is a 
        minor, any rights afforded due to minority status) and 
        responsibilities that arise from, signing the acknowledgment.
            ``(ii) Such procedures must include a hospital-based 
        program for the voluntary acknowledgment of paternity focusing 
        on the period immediately before or after the birth of a child.
            ``(iii) Such procedures must require the State agency 
        responsible for maintaining birth records to offer voluntary 
        paternity establishment services.
            ``(iv) The Secretary shall prescribe regulations governing 
        voluntary paternity establishment services offered by hospitals 
        and birth record agencies. The Secretary shall prescribe 
        regulations specifying the types of other entities that may 
        offer voluntary paternity establishment services, and governing 
        the provision of such services, which shall include a 
        requirement that such an entity must use the same notice 
        provisions used by, the same materials used by, provide the 
        personnel providing such services with the same training 
        provided by, and evaluate the provision of such services in the 
        same manner as, voluntary paternity establishment programs of 
        hospitals and birth record agencies.
            ``(D)(i) Procedures under which a signed acknowledgment of 
        paternity is considered a legal finding of paternity, subject 
        to the right of any signatory to rescind the acknowledgment 
        within 60 days.
            ``(ii)(I) Procedures under which, after the 60-day period 
        referred to in clause (i), a signed acknowledgment of paternity 
        may be challenged in court only on the basis of fraud, duress, 
        or material mistake of fact, with the burden of proof upon the 
        challenger, and under which the legal responsibilities 
        (including child support obligations) of any signatory arising 
        from the acknowledgment may not be suspended during the 
        challenge, except for good cause shown.
            ``(II) Procedures under which, after the 60-day period 
        referred to in clause (i), a minor who signs an acknowledgment 
        of paternity other than in the presence of a parent or court-
        appointed guardian ad litem may rescind the acknowledgment in a 
        judicial or administrative proceeding, until the earlier of--
                    ``(aa) attaining the age of majority; or
                    ``(bb) the date of the first judicial or 
                administrative proceeding brought (after the signing) 
                to establish a child support obligation, visitation 
                rights, or custody rights with respect to the child 
                whose paternity is the subject of the acknowledgment, 
                and at which the minor is represented by a parent, 
                guardian ad litem, or attorney.
            ``(E) Procedures under which no judicial or administrative 
        proceedings are required or permitted to ratify an unchallenged 
        acknowledgment of paternity.
            ``(F) Procedures requiring--
                    ``(i) that the State admit into evidence, for 
                purposes of establishing paternity, results of any 
                genetic test that is--
                            ``(I) of a type generally acknowledged, by 
                        accreditation bodies designated by the 
                        Secretary, as reliable evidence of paternity; 
                        and
                            ``(II) performed by a laboratory approved 
                        by such an accreditation body;
                    ``(ii) that any objection to genetic testing 
                results must be made in writing not later than a 
                specified number of days before any hearing at which 
                such results may be introduced into evidence (or, at 
                State option, not later than a specified number of days 
                after receipt of such results); and
                    ``(iii) that, if no objection is made, the test 
                results are admissible as evidence of paternity without 
                the need for foundation testimony or other proof of 
                authenticity or accuracy.''; and
            (3) by adding after subparagraph (H) the following new 
        subparagraphs:
            ``(I) Procedures providing that the parties to an action to 
        establish paternity are not entitled to a jury trial.
            ``(J) Procedures which require that a temporary order be 
        issued, upon motion by a party, requiring the provision of 
        child support pending an administrative or judicial 
        determination of parentage, where there is clear and convincing 
        evidence of paternity (on the basis of genetic tests or other 
        evidence).
            ``(K) Procedures under which bills for pregnancy, 
        childbirth, and genetic testing are admissible as evidence 
        without requiring third-party foundation testimony, and shall 
        constitute prima facie evidence of amounts incurred for such 
        services and testing on behalf of the child.
            ``(L) At the option of the State, procedures under which 
        the tribunal establishing paternity and support has discretion 
        to waive rights to all or part of amounts owed to the State 
        (but not to the mother) for costs related to pregnancy, 
        childbirth, and genetic testing and for public assistance paid 
        to the family where the father cooperates or acknowledges 
        paternity before or after genetic testing.
            ``(M) Procedures ensuring that the putative father has a 
        reasonable opportunity to initiate a paternity action.''.
    (b) Technical Amendment.--Section 468 (42 U.S.C. 668) is amended by 
striking ``a simple civil process for voluntarily acknowledging 
paternity and''.

SEC. 342. OUTREACH FOR VOLUNTARY PATERNITY ESTABLISHMENT.

    (a) State Plan Requirement.--Section 454(23) (42 U.S.C. 654(23)) is 
amended--
            (1) by striking ``(23)'' and inserting ``(23)(A)'';
            (2) by inserting ``and'' after the semicolon; and
            (3) by adding at the end the following new subparagraph:
            ``(B) publicize the availability and encourage the use of 
        procedures for voluntary establishment of paternity and child 
        support through a variety of means, which--
                    ``(i) include distribution of written materials at 
                health care facilities (including hospitals and 
                clinics), and other locations such as schools;
                    ``(ii) may include pre-natal 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 pre-natal 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.

       PART VI--ESTABLISHMENT AND MODIFICATION OF SUPPORT ORDERS

SEC. 351. NATIONAL CHILD SUPPORT GUIDELINES COMMISSION.

    (a) Establishment.--There is hereby established a commission to be 
known as the ``National Child Support Guidelines Commission'' (in this 
section referred to as the ``Commission'').
    (b) General Duties.--
            (1) In general.--The Commission shall determine--
                    (A) whether it is appropriate to develop a national 
                child support guideline for consideration by the 
                Congress or for adoption by individual States; or
                    (B) based on a study of various guideline models, 
                the benefits and deficiencies of such models, and any 
                needed improvements.
            (2) Development of models.--If the Commission determines 
        under paragraph (1)(A) that a national child support guideline 
        is needed or under paragraph (1)(B) that improvements to 
        guideline models are needed, the Commission shall develop such 
        national guideline or improvements.
    (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;
            (7) procedures to automatically adjust child support orders 
        periodically to address changed economic circumstances, 
        including changes in the consumer price index or either 
        parent's income and expenses in particular cases;
            (8) procedures to help non-custodial parents address 
        grievances regarding visitation and custody orders to prevent 
        such parents from withholding child support payments until such 
        grievances are resolved; and
            (9) whether, or to what extent, support levels should be 
        adjusted in cases in which custody is shared or in which the 
        noncustodial parent has extended visitation rights.
    (d) Membership.--
            (1) Number; appointment.--
                    (A) In general.--The Commission shall be composed 
                of 12 individuals appointed jointly by the Secretary of 
                Health and Human Services and the Congress, not later 
                than January 15, 1997, of which--
                            (i) 2 shall be appointed by the Chairman of 
                        the Committee on Finance of the Senate, and 1 
                        shall be appointed by the ranking minority 
                        member of 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 a 
        term of 2 years. 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.
    (f) Report.--Not later than 2 years after the appointment of 
members, the Commission shall submit to the President, the Committee on 
Ways and Means of the House of Representatives, and the Committee on 
Finance of the Senate, a recommended national child support guideline 
and a final assessment of issues relating to such a proposed national 
child support guideline.
    (g) Termination.--The Commission shall terminate 6 months after the 
submission of the report described in subsection (e).

SEC. 352. SIMPLIFIED PROCESS FOR REVIEW AND ADJUSTMENT OF CHILD SUPPORT 
              ORDERS.

    Section 466(a)(10) (42 U.S.C. 666(a)(10)) is amended to read as 
follows:
            ``(10)(A)(i) Procedures under which--
                    ``(I) every 3 years, at the request of either 
                parent subject to a child support order, the State 
                shall review and, as appropriate, adjust the order in 
                accordance with the guidelines established under 
                section 467(a) if the amount of the child support award 
                under the order differs from the amount that would be 
                awarded in accordance with such guidelines, without a 
                requirement for any other change in circumstances; and
                    ``(II) upon request at any time of either parent 
                subject to a child support order, the State shall 
                review and, as appropriate, adjust the order in 
                accordance with the guidelines established under 
                section 467(a) based on a substantial change in the 
                circumstances of either such parent.
            ``(ii) Such procedures shall require both parents subject 
        to a child support order to be notified of their rights and 
        responsibilities provided for under clause (i) at the time the 
        order is issued and in the annual information exchange form 
        provided under subparagraph (B).
            ``(B) Procedures under which each child support order 
        issued or modified in the State after the effective date of 
        this subparagraph shall require the parents subject to the 
        order to provide each other with a complete statement of their 
        respective financial condition annually on a form which shall 
        be provided by the State. The Secretary shall establish 
        regulations for the enforcement of such exchange of 
        information.''.
                PART VII--ENFORCEMENT OF SUPPORT ORDERS

SEC. 361. FEDERAL INCOME TAX REFUND OFFSET.

    (a) Changed Order of Refund Distribution Under Internal Revenue 
Code.--Section 6402(c) of the Internal Revenue Code of 1986 (relating 
to offset of past-due support against overpayments) is amended--
            (1) by striking ``The amount'' and inserting
            ``(1) In general.--The amount'';
            (2) by striking ``paid to the State. A reduction'' and 
        inserting ``paid to the State''.
            ``(2) Priorities for offset.--A reduction'';
            (3) by striking ``has been assigned'' and inserting ``has 
        not been assigned''; and
            (4) by striking ``and shall be applied'' and all that 
        follows and inserting ``and shall thereafter be applied to 
        satisfy any past-due support that has been so assigned.''.
    (b) Elimination of Disparities in Treatment of Assigned and 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) in paragraph (2), to read as follows:
            ``(2) The State agency shall distribute amounts paid by the 
        Secretary of the Treasury pursuant to paragraph (1)--
                    ``(A) in accordance with subsection (a)(4) or 
                (d)(3) of section 457, in the case of past-due support 
                assigned to a State pursuant to section 402(a)(26) or 
                section 471(a)(17); 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.'';
                    (C) in paragraph (3)--
                            (i) by striking ``or (2)'' each place it 
                        appears; and
                            (ii) in subparagraph (B), by striking 
                        ``under paragraph (2)'' and inserting ``on 
                        account of past-due support described in 
                        paragraph (2)(B)''.
            (2) Notices of past-due support.--Section 464(b) (42 U.S.C. 
        664(b)) is amended--
                    (A) by striking ``(b)(1)'' and inserting ``(b)''; 
                and
                    (B) by striking paragraph (2).
            (3) Definition of past-due support.--Section 464(c) (42 
        U.S.C. 664(c)) is amended--
                    (A) by striking ``(c)(1) Except as provided in 
                paragraph (2), as'' and inserting ``(c) As''; and
                    (B) by striking paragraphs (2) and (3).
    (c) Treatment of Lump-Sum Tax Refund Under AFDC.--
            (1) Exemption from lump-sum rule.--Section 402(a)(17) (42 
        U.S.C. 602(a)(17)) is amended by inserting before the semicolon 
        at the end the following: ``, but this paragraph shall not 
        apply to income received by a family that is attributable to a 
        child support obligation owed with respect to a member of the 
        family and that is paid to the family from amounts withheld 
        from a Federal income tax refund otherwise payable to the 
        person owing such obligation, to the extent that such income is 
        placed in a qualified asset account (as defined in section 
        406(i)) the total amounts in which, after such placement, does 
        not exceed $10,000''.
            (2) Qualified asset account defined.--Section 406 (42 
        U.S.C. 606) is amended by adding at the end the following new 
        subsection:
    ``(i)(1) The term `qualified asset account' means a mechanism 
approved by the State (such as individual retirement accounts, escrow 
accounts, or savings bonds) that allows savings of a family receiving 
aid to families with dependent children to be used for qualified 
distributions.
    ``(2) The term `qualified distribution' means a distribution from a 
qualified asset account for expenses directly related to 1 or more of 
the following purposes:
            ``(A) The attendance of a member of the family at any 
        education or training program.
            ``(B) The improvement of the employability (including self-
        employment) of a member of the family (such as through the 
        purchase of an automobile).
            ``(C) The purchase of a home for the family.
            ``(D) A change of the family residence.''.
    (d) Effective Date.--The amendments made by this section shall 
become effective October 1, 1999.
SEC. 362. INTERNAL REVENUE SERVICE COLLECTION OF ARREARAGES.

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

SEC. 363. AUTHORITY TO COLLECT SUPPORT FROM FEDERAL EMPLOYEES.

    (a) Consolidation and Streamlining of Authorities.--Section 459 (42 
U.S.C. 659) is amended--
            (1) in the heading, by inserting ``income withholding,'' 
        before ``garnishment'';
            (2) in subsection (a)--
                    (A) by striking ``section 207'' and inserting 
                ``section 207 and section 5301 of title 38, United 
                States Code''; and
                    (B) by striking ``to legal process'' and all that 
                follows through the period and inserting ``to 
                withholding in accordance with State law pursuant to 
                subsections (a)(1) and (b) of section 466 and 
                regulations of the Secretary thereunder, and to any 
                other legal process brought, by a State agency 
                administering a program under this part or by an 
                individual obligee, to enforce the legal obligation of 
                such individual to provide child support or alimony.'';
            (3) by striking subsection (b) and inserting the following 
        new subsection:
    ``(b) Except as otherwise provided herein, each entity specified in 
subsection (a) shall be subject, with respect to notice to withhold 
income pursuant to subsection (a)(1) or (b) of section 466, or to any 
other order or process to enforce support obligations against an 
individual (if such order or process contains or is accompanied by 
sufficient data to permit prompt identification of the individual and 
the moneys involved), to the same requirements as would apply if such 
entity were a private person.'';
            (4) by striking subsections (c) and (d) and inserting the 
        following new subsections:
    ``(c)(1) The head of each agency subject to the requirements of 
this section shall--
            ``(A) designate an agent or agents to receive orders and 
        accept service of process; and
            ``(B) publish--
                    ``(i) in the appendix of such regulations;
                    ``(ii) in each subsequent republication of such 
                regulations; and
                    ``(iii) annually in the Federal Register,
        the designation of such agent or agents, identified by title of 
        position, mailing address, and telephone number.
    ``(2) Whenever an agent designated pursuant to paragraph (1) 
receives notice pursuant to subsection (a)(1) or (b) of section 466, or 
is effectively served with any order, process, or interrogatories, with 
respect to an individual's child support or alimony payment 
obligations, such agent shall--
            ``(A) as soon as possible (but not later than 15 days) 
        thereafter, send written notice of such notice or service 
        (together with a copy thereof) to such individual at his duty 
        station or last-known home address;
            ``(B) not later than 30 days (or such longer period as may 
        be prescribed by applicable State law) after receipt of a 
        notice pursuant to subsection (a)(1) or (b) of section 466, 
        comply with all applicable provisions of such section 466; and
            ``(C) not later than 30 days (or such longer period as may 
        be prescribed by applicable State law) after effective service 
        of any other such order, process, or interrogatories, respond 
        thereto.
    ``(d) In the event that a governmental entity receives notice or is 
served with process, as provided in this section, concerning amounts 
owed by an individual to more than 1 person--
            ``(1) support collection under section 466(b) must be given 
        priority over any other process, as provided in section 
        466(b)(7);
            ``(2) allocation of moneys due or payable to an individual 
        among claimants under section 466(b) shall be governed by the 
        provisions of such section 466(b) and regulations thereunder; 
        and
            ``(3) such moneys as remain after compliance with 
        subparagraphs (A) and (B) shall be available to satisfy any 
        other such processes on a first-come,
         first-served basis, with any such process being satisfied out 
of such moneys as remain after the satisfaction of all such processes 
which have been previously served.'';
            (5) in subsection (f)--
                    (A) by striking ``(f)'' and inserting ``(f)(1)''; 
                and
                    (B) by adding at the end the following new 
                paragraph:
    ``(2) No Federal employee whose duties include taking actions 
necessary to comply with the requirements of subsection (a) with regard 
to any individual shall be subject under any law to any disciplinary 
action or civil or criminal liability or penalty for, or on account of, 
any disclosure of information made by him in connection with the 
carrying out of such duties.''; and
            (6) by adding at the end the following new 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 (d) of 
section 462 (42 U.S.C. 662), are transferred and redesignated as 
paragraphs (1) through (4), respectively, of section 459(j) (as added 
by subsection (a)(6)), and the left margin of each of such paragraphs 
(1) through (4) is indented 2 ems to the right of the left margin of 
subsection (j) (as added by subsection (a)(6)).
    (c) Conforming Amendments.--
            (1) To part d of title iv.--Sections 461 and 462 (42 U.S.C. 
        661) 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)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (B), by striking 
                        ``and'';
                            (ii) in subparagraph (C), by striking the 
                        period and inserting ``; and''; and
                            (iii) 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).'';
                    (B) in paragraph (2), by inserting ``or a court 
                order for the payment of child support not included in 
                or accompanied by such a decree or settlement,'' before 
                ``which--'';
            (2) in subsection (d)--
                    (A) in the heading, by inserting ``(or for benefit 
                of)'' after ``concerned''; and
                    (B) in paragraph (1), in the first sentence, by 
                inserting ``(or for the benefit of such spouse or 
                former spouse to a State central collections unit or 
                other public payee designated by a State, in accordance 
                with part D of title IV of the Social Security Act, as 
                directed by court order, or as otherwise directed in 
                accordance with such part D)'' before ``in an amount 
                sufficient''; and
            (3) 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. 364. ENFORCEMENT OF CHILD SUPPORT OBLIGATIONS OF MEMBERS OF THE 
              ARMED FORCES.

    (a) Availability of Locator Information.--
            (1) Maintenance of address information.--The Secretary of 
        Defense shall establish a centralized personnel locator service 
        that includes the address of each member of the Armed Forces 
        under the jurisdiction of the Secretary. Upon request of the 
        Secretary of Transportation, addresses for members of the Coast 
        Guard shall be included in the centralized personnel locator 
        service.
            (2) Type of address.--
                    (A) Residential address.--Except as provided in 
                subparagraph (B), the address for a member of the Armed 
                Forces shown in the locator service shall be the 
                residential address of that member.
                    (B) Duty address.--The address for a member of the 
                Armed Forces shown in the locator service shall be the 
                duty address of that member in the case of a member--
                            (i) who is permanently assigned overseas, 
                        to a vessel, or to a routinely deployable unit; 
                        or
                            (ii) with respect to whom the Secretary 
                        concerned makes a determination that the 
                        member's residential address should not be 
                        disclosed due to national security or safety 
                        concerns.
            (3) Updating of locator information.--Not later than 30 
        days after a member listed in the locator service establishes a 
        new residential address (or a new duty address, in the case of 
        a member covered by paragraph (2)(B)), the Secretary concerned 
        shall update the locator service to indicate the new address of 
        the member.
            (4) Availability of information.--The Secretary of Defense 
        shall make information regarding the address of a member of the 
        Armed Forces listed in the locator service available, on 
        request, to the Federal Parent Locator Service.
    (b) Facilitating Granting of Leave for Attendance at Hearings.--
            (1) Regulations.--The Secretary of each military 
        department, and the Secretary of Transportation with respect to 
        the Coast Guard when it is not operating as a service in the 
        Navy, shall prescribe regulations to facilitate the granting of 
        leave to a member of the Armed Forces under the jurisdiction of 
        that Secretary in a case in which--
                    (A) the leave is needed for the member to attend a 
                hearing described in paragraph (2);
                    (B) the member is not serving in or with a unit 
                deployed in a contingency operation (as defined in 
                section 101 of title 10, United States Code); and
                    (C) the exigencies of military service (as 
                determined by the Secretary concerned) do not otherwise 
                require that such leave not be granted.
            (2) Covered hearings.--Paragraph (1) applies to a hearing 
        that is conducted by a court or pursuant to an administrative 
        process established under State law, in connection with a civil 
        action--
                    (A) to determine whether a member of the Armed 
                Forces is a natural parent of a child; or
                    (B) to determine an obligation of a member of the 
                Armed Forces to provide child support.
            (3) Definitions.--For purposes of this subsection:
                    (A) The term ``court'' has the meaning given that 
                term in section 1408(a) of title 10, United States 
                Code.
                    (B) The term ``child support'' has the meaning 
                given such term in section 462 of the Social Security 
                Act (42 U.S.C. 662).
    (c) Payment of Military Retired Pay in Compliance With Child 
Support Orders.--Section 1408 of title 10, United States Code, as 
amended by section 363(d)(3), is amended--
            (1) by redesignating subsections (i) and (j) as subsections 
        (j) and (k), respectively;
            (2) by inserting after subsection (h) the following new 
        subsection:
    ``(i) Certification Date.--It is not necessary that the date of a 
certification of the authenticity or completeness of a copy of a court 
order or an order of an administrative process established under State 
law for child support received by the Secretary concerned for the 
purposes of this section be recent in relation to the date of receipt 
by the Secretary.''; and
            (3) in subsection (d)--
                    (A) in paragraph (1), by inserting after the first 
                sentence the following: ``In the case of a spouse or 
                former spouse who, pursuant to section 402(a)(26) of 
                the Social Security Act (42 U.S.C. 602(26)), assigns to 
                a State the rights of the spouse or former spouse to 
                receive support, the Secretary concerned may make the 
                child support payments referred to in the preceding 
                sentence to that State in amounts consistent with that 
                assignment of rights.''; and
                    (B) by adding at the end the following new 
                paragraph:
    ``(6) In the case of a court order or an order of an administrative 
process established under State law for which effective service is made 
on the Secretary concerned on or after the date of the enactment of 
this paragraph and which provides for payments from the disposable 
retired pay of a member to satisfy the amount of child support set 
forth in the order, the authority provided in paragraph (1) to make 
payments from the disposable retired pay of a member to satisfy the 
amount of child support set forth in a court order or an order of an 
administrative process established under State law shall apply to 
payment of any amount of child support arrearages set forth in that 
order as well as to amounts of child support that currently become 
due.''.

SEC. 365. VOIDING OF FRAUDULENT TRANSFERS.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 302(a), 
326(a), and 331, is amended by adding at the end the following new 
paragraph:
            ``(15) Procedures under which--
                    ``(A) the State has in effect--
                            ``(i) the Uniform Fraudulent Conveyance Act 
                        of 1981,
                            ``(ii) the Uniform Fraudulent Transfer Act 
                        of 1984, or
                            ``(iii) another law, specifying indicia of 
                        fraud which create a prima facie case that a 
                        debtor transferred income or property to avoid 
                        payment to a child support creditor, which the 
                        Secretary finds affords comparable rights to 
                        child support creditors; and
                    ``(B) in any case in which the State knows of a 
                transfer by a child support debtor with respect to 
                which such a prima facie case is established, the State 
                must--
                            ``(i) seek to void such transfer; or
                            ``(ii) obtain a settlement in the best 
                        interests of the child support creditor.''.

SEC. 366. STATE LAW AUTHORIZING SUSPENSION OF LICENSES.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 302(a), 
326(a), 331, and 365, is amended by adding at the end the following new 
paragraph:
            ``(16) Procedures under which the State has (and uses in 
        appropriate cases) authority (subject to appropriate due 
        process safeguards) to withhold or suspend, or to restrict the 
        use of driver's licenses, professional and occupational 
        licenses, and recreational licenses of individuals owing 
        overdue child support or failing, after receiving appropriate 
        notice, to comply with subpoenas or warrants relating to 
        paternity or child support proceedings.''.

SEC. 367. 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 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. 368. EXTENDED STATUTE OF LIMITATION FOR COLLECTION OF ARREARAGES.

    (a) In General.--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. 369. CHARGES FOR ARREARAGES.

    (a) State Law Requirement.--Section 466(a) (42 U.S.C. 666(a)), as 
amended by sections 302(a), 326(a), 331, 365, and 367, is amended by 
adding at the end the following new paragraph:
            ``(17) Procedures providing for the calculation and 
        collection of interest or penalties for arrearages of child 
        support, and for distribution of such interest or penalties 
        collected for the benefit of the child (except where the right 
        to support has been assigned to the State).''.
    (b) Regulations.--The Secretary of Health and Human Services shall 
establish by regulation a rule to resolve choice of law conflicts 
arising in the implementation of the amendment made by subsection (a).
    (c) Conforming Amendment.--Section 454(21) (42 U.S.C. 654(21)) is 
repealed.
    (d) Effective Date.--The amendments made by this section shall be 
effective with respect to arrearages accruing on or after October 1, 
1998.

SEC. 370. 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 315(a)(3) and 317, 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 or in an amount exceeding 24 months' worth of child support, the 
Secretary shall transmit such certification to the Secretary of State 
for action (with respect to denial, revocation, or limitation of 
passports) pursuant to section 370(b) of the Interstate Child Support 
Responsibility Act of 1995.
    ``(2) The Secretary shall not be liable to an individual for any 
action with respect to a certification by a State agency under this 
section.''.
            (2) State cse agency responsibility.--Section 454 (42 
        U.S.C. 654), as amended by sections 301(a), 305(a), 314(b), and 
        322(a), is 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 or in an amount exceeding 24 months' worth of 
        child support, under which procedure--
                    ``(A) each individual concerned is afforded notice 
                of such determination and the consequences thereof, and 
                an opportunity to contest the determination; and
                    ``(B) the certification by the State agency is 
                furnished to the Secretary in such format, and 
                accompanied by such supporting documentation, as the 
                Secretary may require.''.
    (b) State Department Procedure for Denial of Passports.--
            (1) In general.--The Secretary of State, upon certification 
        by the Secretary of Health and Human Services, in accordance 
        with section 452(l) of the Social Security Act, that an 
        individual owes arrearages of child support in excess of $5,000 
        or in an amount exceeding 24 months' worth of child support, 
        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 section.
    (c) Effective Date.--This section and the amendments made by this 
section shall become effective October 1, 1996.
                       PART VIII--MEDICAL SUPPORT

SEC. 381. TECHNICAL CORRECTION TO ERISA DEFINITION OF MEDICAL CHILD 
              SUPPORT ORDER.

    (a) In General.--Section 609(a)(2)(B) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1169(a)(2)(B)) is amended--
            (1) by striking ``issued by a court of competent 
        jurisdiction'';
            (2) in clause (ii) by striking the period and inserting a 
        comma; and
            (3) by adding after clause (ii), the following flush left 
        language:
                ``if such judgment, decree, or order (I) is issued by a 
                court of competent jurisdiction or (II) is issued by an 
                administrative adjudicator and has the force and effect 
                of law under applicable State law.''.
    (b) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        become effective on the date of the enactment of this Act.
            (2) Plan amendments not required until january 1, 1996.--
                    (A) In general.--Any amendment to a plan required 
                to be made by an amendment made by this section shall 
                not be required to be made before the first plan year 
                beginning on or after January 1, 1996, if--
                            (i) during the period after the date before 
                        the date of the enactment of this Act and 
                        before such first plan year, the plan is 
                        operated in accordance with the requirements of 
                        the amendments made by this section; and
                            (ii) such plan amendment applies 
                        retroactively to the period after the date 
                        before the date of the enactment of this Act 
                        and before such first plan year.
                    (B) No failure for compliance with this 
                paragraph.--A plan shall not be treated as failing to 
                be operated in accordance with the provisions of the 
                plan merely because it operates in accordance with this 
                paragraph.

                PART IX--ACCESS AND VISITATION PROGRAMS

SEC. 391. GRANTS TO STATES FOR ACCESS AND VISITATION PROGRAMS.

    Part D of title IV 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 
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 
1996 and 1997, 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 1994.
    ``(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 1996 or 
        1997, 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 nonprofit 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.''.

                    Subtitle B--Effect of Enactment

SEC. 395. EFFECTIVE DATES.

    (a) In General.--Except as otherwise specifically provided (but 
subject to subsections (b) and (c))--
            (1) provisions of subtitle A 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 subtitle A shall become 
        effective upon the date of the enactment of this Act.
    (b) Grace Period for State Law Changes.--The provisions of subtitle 
A shall become effective with respect to a State on the later of--
            (1) the date specified in subtitle A, 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 subtitle 
A 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. 396. SEVERABILITY.

    If any provision of subtitle A or the application thereof to any 
person or circumstance is held invalid, the invalidity shall not affect 
other provisions or applications of subtitle A which can be given 
effect without regard to the invalid provision or application, and to 
this end the provisions of subtitle A shall be severable.
                 TITLE IV--SUPPLEMENTAL SECURITY INCOME

SEC. 401. REVISED REGULATIONS APPLICABLE TO THE DETERMINATION OF 
              DISABILITY IN INDIVIDUALS UNDER THE AGE OF 18.

    (a) Regulations Applicable to the Determination of Disability in 
Individuals Under the Age of 18.--
            (1) In general.--The Commissioner of Social Security 
        (hereafter in this section referred to as the ``Commissioner'') 
        is directed to issue revised regulations applicable to the 
        determination of disability in individuals under the age of 18 
        for purposes of establishing eligibility for supplemental 
        security income benefits under title XVI of the Social Security 
        Act that ensure that such eligibility is limited to those 
        individuals whose impairments are sufficiently severe as to 
        meet the statutory definition of disability contained in 
        section 1614(a)(3)(A) of such Act (42 U.S.C. 1382c(a)(3)(A)).
            (2) Specific requirements.--
                    (A) In general.--The regulations described in 
                paragraph (1) shall provide that an individual under 
                the age of 18 may be determined to be under a 
                disability only if the individual's impairment or 
                combination of impairments is so severe as to cause, at 
                minimum--
                            (i) a marked limitation in at least 2 
                        domains of functioning or development; or
                            (ii) an extreme limitation in at least 1 
                        such domain.
                    (B) Domain defined.--As used in subparagraph (A), 
                the term ``domain'' refers to a broad but, to the 
                maximum extent practicable, discrete area of function 
                or development that can be identified in infancy and 
                traced through an individual's maturation. Subject to 
                subparagraph (C), the Commissioner shall specify 
                domains and describe the age-appropriate activities and 
                behaviors that characterize each domain. Under no 
                circumstance may the Commissioner specify a domain of 
                maladaptive behavior or consider the limitations caused 
                by such behavior in more than 1 domain.
                    (C) Limitation on number of domains.--For the 
                purpose of making individualized functional assessments 
                in individuals under the age of 18, the Commissioner 
                shall specify a set of domains consisting of fewer 
                domains than the number in use for such purpose on the 
                date of the enactment of this Act.
            (3) Deadline.--The Commissioner shall issue the regulations 
        required by this subsection not later than the last day of the 
        ninth month that begins after the date of the enactment of this 
        Act.
    (b) Disability Review Required for Certain Recipients.--
            (1) In general.--During the period that begins on the 
        effective date of the regulations required by subsection (a) 
        and that ends 2 years after such date, the Commissioner shall 
        redetermine the eligibility for supplemental security income 
        benefits under title XVI of the Social Security Act by reason 
        of disability of each individual receiving such benefits on the 
        basis of a finding of disability made before the effective date 
        of such regulations. The provisions of section 1614(a)(4) of 
        such Act (42 U.S.C. 1382c(a)(4)) shall not apply to 
        redeterminations conducted pursuant to this paragraph. The 
        Commissioner shall except from the requirement of this 
        paragraph any individual whose impairment or combination of 
        impairments was determined to be disabling in accordance with 
        regulations that were not subject to revision pursuant to 
        subsection (a).
            (2) Notice.--In any case in which the Commissioner 
        initiates a review under this subsection, the Commissioner 
        shall notify the individual whose case is to be reviewed in the 
        same manner as required under section 221(i)(4) of the Social 
        Security Act (42 U.S.C. 421(i)(4)).

SEC. 402. DIRECTORY OF SERVICES.

    Section 1631 (42 U.S.C. 1383) is amended by redesignating the 
second subsection (n) (relating to notice requirements) as subsection 
(o) and by adding at the end the following new subsection:

                        ``Directory of Services

    ``(p) For the purpose of expanding the information base available 
to members of the public who contact the Social Security 
Administration, the Commissioner of Social Security shall establish a 
directory of services for disabled children that are available within 
the area served by each Social Security Administration office. Each 
such directory shall include the names of service providers, along with 
each provider's address and telephone number, and shall be accessible 
electronically by all agency personnel who provide direct service to 
the public.''.

SEC. 403. USE OF STANDARDIZED TESTS AND THEIR EQUIVALENT.

    Section 1614(a)(3)(H) (42 U.S.C. 1382c(a)(3)(H)) is amended--
            (1) by inserting ``(i)'' after ``(H)''; and
            (2) by adding after and below the end the following:
            ``(ii) In making any determination under this title with 
        respect to the disability of an individual who is under the age 
        of 18, the Commissioner shall use--
                    ``(I) standardized tests that provide measures of 
                childhood development or functioning, or
                    ``(II) criteria of childhood development or 
                function that are equivalent to the findings of a 
                standardized test,
        whenever such tests or criteria are available and the 
        Commissioner determines their use to be appropriate.''.

SEC. 404. GRADUATED BENEFITS FOR ADDITIONAL CHILDREN.

    (a) In General.--Section 1611(b) of the Social Security Act (42 
U.S.C. 1382(b)) is amended by adding at the end the following new 
paragraph:
    ``(3)(A) The benefit under this title for each eligible blind or 
disabled individual as determined pursuant to section 1611(a)(1) who--
            ``(i) is a child under the age of 18,
            ``(ii) lives in the same household as 1 or more persons who 
        are also eligible blind or disabled children under the age of 
        18, and
            ``(iii) does not live in a group or foster home,
shall be equal to the applicable percentage of the amount in section 
1611(b)(1), reduced by the amount of any income of such child, 
including income deemed to such child under section 1614(f)(2).
    ``(B) For purposes of this paragraph, the applicable percentage 
shall be determined under the following table:

  
                                                         The applicable
  
                                                    percentage for each
``If the household has:
                                                     eligible child is:
  2 eligible children................................        90 percent
  3 eligible children................................        80 percent
  4 eligible children................................        70 percent
  5 eligible children................................        65 percent
  6 eligible children................................        60 percent
  7 eligible children................................        55 percent
  8 eligible children................................        50 percent
  9 eligible children or more........................        45 percent
    ``(C) For purposes of this paragraph, the applicable household size 
shall be determined by the number of eligible blind and disabled 
children under the age of 18 in such household whose countable income 
and resources do not exceed the limits specified in section 
1611(a)(1).''.
    (b) Preservation of Medicaid Eligibility.--Section 1634 (42 U.S.C. 
1383c) is amended by adding at the end the following new subsection:
    ``(f) Any child under the age of 18 who would be eligible for a 
payment under this title but for the limitation on payment amount 
imposed by section 1611(b)(3) shall be deemed receiving such benefit 
for purposes of establishing such child's eligibility for medical 
assistance under a State plan approved under title XIX of this Act.''.
    (c) Conforming Amendment.--Section 1618(e) (42 U.S.C. 1382g(e)) is 
amended by adding at the end the following new paragraph:
    ``(3) In determining whether the requirements of paragraph (1) of 
this subsection are met, the difference between the benefit amounts 
authorized by section 1611(b)(1) and the benefits authorized after the 
application of section 1611(b)(3) shall be disregarded.
    ``(4) For purposes of determining compliance with section 1618(b), 
decreases or increases in a State's expenditures in a 12-month period 
due solely to reductions in amounts of benefits paid pursuant to 
section 1611(b)(3) shall be disregarded.''.
    (d) Effective Date.--The amendments made by this section shall take 
effect--
            (1) on the date of the enactment of this Act, with respect 
        to payments made on the basis of determinations of eligibility 
        made on or after such date, and
            (2) 180 days after the date of the enactment of this Act, 
        with respect to payments made for months beginning after such 
        date on the basis of determinations of eligibility made before 
        the date of the enactment of this Act.

SEC. 405. TREATMENT REQUIREMENTS FOR DISABLED INDIVIDUALS UNDER THE AGE 
              OF 18.

    (a) In General.--Section 1631(a)(2) (42 U.S.C. 1383(a)(2)) is 
amended--
            (1) by redesignating subparagraphs (E) and (F) as 
        subparagraphs (F) and (G), respectively; and
            (2) by inserting after subparagraph (D) the following new 
        subparagraph:
    ``(E)(i) Not later than 3 months after the Commissioner determines 
that an individual under the age of 18 is eligible for benefits under 
this title by reason of disability (and periodically thereafter, as the 
Commissioner may require), the representative payee of such individual 
shall file with the State agency that makes disability determinations 
on behalf of the Commissioner of Social Security in the State in which 
such individual resides, a copy of the treatment plan required by 
clause (ii).
    ``(ii) The treatment plan required by this clause shall be 
developed by the individual's treating physician or other medical 
provider, or if approved by the Commissioner, other service provider, 
and shall describe the services that such physician or provider 
determines is appropriate for the treatment of such individual's 
impairment or combination of impairments. Such plan shall be in such 
form and contain such information as the Commissioner may prescribe.
    ``(iii) The representative payee of any individual described in 
clause (i) shall provide evidence of adherence to the treatment plan 
described in clause (ii) at the time of any redetermination of 
eligibility conducted pursuant to section 1614(a)(3)(G)(ii), and at 
such other time as the Commissioner may prescribe.
    ``(iv) The failure of a representative payee to comply without good 
cause with the requirements of clause (i) or (iii) shall constitute 
misuse of benefits to which subparagraph (A)(iii) (but not subparagraph 
(F)) shall apply. In providing for an alternative representative payee 
as required by subparagraph (A)(iii), the Commissioner shall give 
preference to the State agency that administers the State plan approved 
under title XIX for the State in which the individual described in 
clause (i) resides or any other State agency designated by the State 
for such responsibility, unless the Commissioner determines that 
selection of another organization or person would be appropriate. Any 
such State agency that serves as a representative payee shall be a 
`qualified organization' for purposes of subparagraph (D) of this 
paragraph.
    ``(v) This subparagraph shall not apply to the representative payee 
of any individual with respect to whom the Commissioner determines such 
application would be inappropriate or unnecessary. In making such 
determinations, the Commissioner shall take into consideration the 
nature of the individual's impairment (or combination of impairments) 
and the availability of treatment for such impairment (or impairments). 
Section 1631(c) shall not apply to a finding by the Commissioner that 
the requirements of this subparagraph should not apply to an 
individual's representative payee.''.
    (b) Access to Medicaid Records.--
            (1) Requirement to furnish information.--Section 1902(a) 
        (42 U.S.C. 1396a(a)) is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (61);
                    (B) by striking the period at the end of paragraph 
                (62) and inserting ``; and''; and
                    (C) by adding after paragraph (62) the following 
                new paragraph:
            ``(63) provide that the State agency that administers the 
        plan described in this section shall make available to the 
        Commissioner of Social Security such information as the 
        Commissioner may request in connection with the verification of 
        information furnished to the Commissioner by a representative 
        payee pursuant to section 1631(a)(2)(E)(iii).''.
            (2) Reimbursement of state costs.--Section 1633 (42 U.S.C. 
        1383b) is amended by adding at the end the following new 
        subsection:
    ``(d) The Commissioner of Social Security shall reimburse a State 
for the costs of providing information pursuant to section 1902(a)(63) 
from funds available for carrying out this title.''.
    (c) Report to the Congress.--Not later than the last day of the 
thirty-sixth month beginning after the date of the enactment of this 
Act, the Inspector General of the Social Security Administration shall 
report to the Committee on Ways and Means of the House of 
Representatives and the Committee on Finance of the Senate on the 
implementation of this section.
    (d) Effective Date.--This section shall take effect on the first 
day of the twelfth month that begins after the date of the enactment of 
this Act.

SEC. 406. SPECIAL ACCOUNTS FOR INDIVIDUALS UNDER THE AGE OF 18.

    (a) Requirement To Establish Account.--Section 1631(a)(2) (42 
U.S.C. 1383(a)(2)), as amended by section 405(a), is amended--
            (1) by redesignating subparagraphs (F) and (G) as 
        subparagraphs (G) and (H), respectively; and
            (2) by inserting after subparagraph (E) the following new 
        subparagraph:
    ``(F)(i)(I) Each representative payee of an eligible individual 
under the age of 18 who is eligible for the payment of benefits 
described in subclause (II) shall establish on behalf of such 
individual an account in a financial institution into which such 
benefits shall be paid, and shall thereafter maintain such account for 
use in accordance with clause (ii).
    ``(II) Benefits described in this subclause are past-due monthly 
benefits under this title (which, for purposes of this subclause, 
include State supplementary payments made by the Commissioner pursuant 
to an agreement under section 1616 or section 212(b) of Public Law 93-
66) in an amount (after any withholding by the Commissioner for 
reimbursement to a State for interim assistance under subsection (g)) 
that exceeds the product of--
            ``(aa) 6, and
            ``(bb) the maximum monthly benefit payable under this title 
        to an eligible individual.
    ``(ii)(I) A representative payee may use funds in the account 
established under clause (i) to pay for allowable expenses described in 
subclause (II).
    ``(II) An allowable expense described in this subclause is an 
expense for--
            ``(aa) education or job skills training;
            ``(bb) personal needs assistance;
            ``(cc) special equipment;
            ``(dd) housing modification;
            ``(ee) medical treatment;
            ``(ff) therapy or rehabilitation; or
            ``(gg) any other item or service that the Commissioner 
        determines to be appropriate;
provided that such expense benefits such individual and, in the case of 
an expense described in division (cc), (dd), (ff), or (gg), is related 
to the impairment (or combination of impairments) of such individual.
    ``(III) The use of funds from an account established under clause 
(i) in any manner not authorized by this clause--
            ``(aa) by a representative payee shall constitute misuse of 
        benefits for all purposes of this paragraph, and any 
        representative payee who knowingly misuses benefits from such 
        an account shall be liable to the Commissioner in an amount 
        equal to the total amount of such misused benefits; and
            ``(bb) by an eligible individual who is his or her own 
        representative payee shall be considered an overpayment subject 
        to recovery under subsection (b).
    ``(IV) This clause shall continue to apply to funds in the account 
after the child has reached age 18, regardless of whether benefits are 
paid directly to the beneficiary or through a representative payee.
    ``(iii) The representative payee may deposit into the account 
established pursuant to clause (i)--
            ``(I) past-due benefits payable to the eligible individual 
        in an amount less than that specified in clause (i)(II), and
            ``(II) any other funds representing an underpayment under 
        this title to such individual, provided that the amount of such 
        underpayment is equal to or exceeds the maximum monthly benefit 
        payable under this title to an eligible individual.
    ``(iv) The Commissioner of Social Security shall establish a system 
for accountability monitoring whereby such representative payee shall 
report, at such time and in such manner as the Commissioner shall 
require, on activity respecting funds in the account established 
pursuant to clause (i).''.
    (b) Exclusion From Resources.--Section 1613(a) (42 U.S.C. 1382b(a)) 
is amended--
            (1) in paragraph (9), by striking ``; and'' and inserting a 
        semicolon;
            (2) in the first paragraph (10), by striking the period and 
        inserting a semicolon;
            (3) by redesignating the second paragraph (10) as paragraph 
        (11), and by striking the period and inserting ``; and''; and
            (4) by adding at the end the following:
            ``(12) the assets and accrued interest or other earnings of 
        any account established and maintained in accordance with 
        section 1631(a)(2)(F).''.
    (c) Exclusion From Income.--Section 1612(b) (42 U.S.C. 1382a(b)) is 
amended--
            (1) by striking ``and'' at the end of paragraph (19);
            (2) by striking the period at the end of paragraph (20) and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(21) the interest or other earnings on any account 
        established and maintained in accordance with section 
        1631(a)(2)(F).''.
    (d) Conforming Amendment.--Section 1631(a)(2)(E)(iv) of the Act (as 
added by section 405(a)) is amended by striking ``subparagraph (F)'' 
and inserting ``subparagraph (G)''.
    (e) Effective Date.--This section shall take effect on the date 
which is 180 days after the date of the enactment of this Act.

SEC. 407. CONTINUING DISABILITY REVIEWS FOR INDIVIDUALS UNDER THE AGE 
              OF 18.

    (a) In General.--Section 1614(a)(3) (42 U.S.C. 1382c(a)(3)) is 
amended by redesignating subparagraph (H) as subparagraph (I) and by 
inserting after subparagraph (G) the following new subparagraph--
    ``(H)(i)(I) Except as provided in subclauses (II), (III), and (IV), 
the Commissioner of Social Security shall redetermine the eligibility 
for benefits under this title by reason of disability of each 
individual under the age of 18 at least once every 3 years.
    ``(II) In any case in which the Commissioner does not expect 
improvement in the condition of such an individual, the redetermination 
of eligibility for such benefits shall be made at such times as the 
Commissioner determines to be appropriate.
    ``(III) In any case in which the Commissioner determines that the 
condition of such an individual may be expected to improve within 3 
years, such redetermination shall be made at more frequent intervals.
    ``(IV) The Commissioner shall redetermine the eligibility for 
benefits under this title by reason of disability of each individual 
whose low birth weight is a contributing factor material to the 
Commissioner's determination that the individual is disabled. Such 
redetermination shall be made not later than 18 months after such 
individual was initially determined to be eligible for such benefits on 
the basis, in whole or in part, of low birth weight.
    ``(ii) The Commissioner shall determine the most cost-effective 
means for complying with the requirements of this subparagraph.
    ``(iii) The provisions of paragraph (4) shall apply to all 
redeterminations required by this subparagraph.''.
    (b) Conforming Amendment.--Section 208(a) of the Social Security 
Independence and Program Improvements Act of 1994 is amended by 
striking ``100,000'' and inserting ``80,000 adult''.
SEC. 408. COORDINATION OF SERVICES FOR SSI CHILDREN.

    (a) In General.--Section 505(a) (42 U.S.C. 705(a)) is amended--
            (1) in paragraph 5--
                    (A) by striking ``and'' at the end of subparagraph 
                (E);
                    (B) by striking the period at the end of 
                subparagraph (F) and inserting ``; and''; and
                    (C) by inserting after subparagraph (F) the 
                following new subparagraph:
                    ``(G) the agency administering the State's program 
                under this title shall be responsible for developing a 
                care coordination plan for each child receiving 
                benefits under title XVI on the basis of disability to 
                assure that such child has access to available medical 
                and other support services, that services are provided 
                in an efficient and effective manner, and that gaps in 
                the provision of services are identified.''; and
            (2) by adding at the end the following new subsection:
    ``(c) For purposes of subsection (a)(5)(G), the Secretary, the 
Secretary of Education, and the Commissioner of Social Security shall 
take such steps as may be necessary, through issuance of regulations, 
guidelines, or such other means as they may determine, to assure that, 
where appropriate, the State agency administering title XIX, the State 
Department of Mental Health, the State Disability Determination Service 
that makes determinations under title II, the State Vocational 
Rehabilitation agency, the State Developmental Disabilities Council, 
and the State Department of Education--
            ``(1) assist the agency administering the State's program 
        under this title in the development of the child's care 
        coordination plan;
            ``(2) participate in the planning and delivery of the 
        services specified in the care coordination plan; and
            ``(3) assist such agency in providing to the Secretary for 
        each fiscal year information on--
                    ``(A) the number of children receiving benefits 
                under title XVI who were referred to such agency for 
                services,
                    ``(B) the number of such children who were referred 
                who were served,
                    ``(C) the services provided (including intensity of 
                services, duration of services, types of providers, and 
                costs of services),
                    ``(D) the number of children referred to other 
                agencies or departments for services, and
                    ``(E) the number of care coordination plans 
                developed during such fiscal year.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to fiscal years beginning after September 30, 1995.
                   TITLE V--MISCELLANEOUS PROVISIONS

SEC. 501. REVISION OF TAX RULES ON EXPATRIATION.

    (a) In General.--Subpart A of part II of subchapter N of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 877 the following new section:

``SEC. 877A. TAX RESPONSIBILITIES OF EXPATRIATION.

    ``(a) General Rules.--For purposes of this subtitle--
            ``(1) Mark to market.--Except as provided in subsection 
        (f)(2), all property held by an expatriate immediately before 
        the expatriation date shall be treated as sold at such time for 
        its fair market value.
            ``(2) Recognition of gain or loss.--In the case of any sale 
        under paragraph (1)--
                    ``(A) notwithstanding any other provision of this 
                title, any gain arising from such sale shall be taken 
                into account for the taxable year
                 of the sale unless such gain is excluded from gross 
income under part III of subchapter B, and
                    ``(B) any loss arising from such sale shall be 
                taken into account for the taxable year of the sale to 
                the extent otherwise provided by this title, except 
                that section 1091 shall not apply (and section 1092 
                shall apply) to any such loss.
            ``(3) Election to continue to be taxed as united states 
        citizen.--
                    ``(A) In general.--If an expatriate elects the 
                application of this paragraph with respect to any 
                property--
                            ``(i) this section (other than this 
                        paragraph) shall not apply to such property, 
                        but
                            ``(ii) such property shall be subject to 
                        tax under this title in the same manner as if 
                        the individual were a United States citizen.
                    ``(B) Limitation on amount of estate, gift, and 
                generation-skipping transfer taxes.--The aggregate 
                amount of taxes imposed under subtitle B with respect 
                to any transfer of property by reason of an election 
                under subparagraph (A) shall not exceed the amount of 
                income tax which would be due if the property were sold 
                for its fair market value immediately before the time 
                of the transfer or death (taking into account the rules 
                of subsection (a)(2)).
                    ``(C) Requirements.--Subparagraph (A) shall not 
                apply to an individual unless the individual--
                            ``(i) provides security for payment of tax 
                        in such form and manner, and in such amount, as 
                        the Secretary may require,
                            ``(ii) consents to the waiver of any right 
                        of the individual under any treaty of the 
                        United States which would preclude assessment 
                        or collection of any tax which may be imposed 
                        by reason of this paragraph, and
                            ``(iii) complies with such other 
                        requirements as the Secretary may prescribe.
                    ``(D) Election.--An election under subparagraph (A) 
                shall apply only to the property described in the 
                election and, once made, shall be irrevocable.
    ``(b) Exclusion for Certain Gain.--The amount which would (but for 
this subsection) be includible in the gross income of any individual by 
reason of subsection (a) shall be reduced (but not below zero) by 
$600,000.
    ``(c) Property Treated as Held.--For purposes of this section, 
except as otherwise provided by the Secretary, an individual shall be 
treated as holding--
            ``(1) all property which would be includible in his gross 
        estate under chapter 11 if such individual were a citizen or 
        resident of the United States (within the meaning of chapter 
        11) who died at the time the property is treated as sold,
            ``(2) any other interest in a trust which the individual is 
        treated as holding under the rules of subsection (f)(1), and
            ``(3) any other interest in property specified by the 
        Secretary as necessary or appropriate to carry out the purposes 
        of this section.
    ``(d) Exceptions.--The following property shall not be treated as 
sold for purposes of this section:
            ``(1) United states real property interests.--Any United 
        States real property interest (as defined in section 
        897(c)(1)), other than stock of a United States real property 
        holding corporation which does not, on the expatriation date, 
        meet the requirements of section 897(c)(2).
            ``(2) Interest in certain retirement plans.--
                    ``(A) In general.--Any interest in a qualified 
                retirement plan (as defined in section 4974(c)), other 
                than any interest attributable to contributions which 
                are in excess of any limitation or which violate any 
                condition for tax-favored treatment.
                    ``(B) Foreign pension plans.--
                            ``(i) In general.--Under regulations 
                        prescribed by the Secretary, interests in 
                        foreign pension plans or similar retirement 
                        arrangements or programs.
                            ``(ii) Limitation.--The value of property 
                        which is treated as not sold by reason of this 
                        subparagraph shall not exceed $500,000.
    ``(e) Definitions.--For purposes of this section--
            ``(1) Expatriate.--The term `expatriate' means--
                    ``(A) any United States citizen who relinquishes 
                his citizenship, or
                    ``(B) any long-term resident of the United States 
                who--
                            ``(i) ceases to be a lawful permanent 
                        resident of the United States (within the 
                        meaning of section 7701(b)(6)), or
                            ``(ii) commences to be treated as a 
                        resident of a foreign country under the 
                        provisions of a tax treaty between the United 
                        States and the foreign country and who does not 
                        waive the benefits of such treaty applicable to 
                        residents of the foreign country.
        An individual shall not be treated as an expatriate for 
        purposes of this section by reason of the individual 
        relinquishing United States citizenship before attaining the 
        age of 18\1/2\ if the individual has been a resident of the 
        United States (as defined in section 7701(b)(1)(A)(ii)) for 
        less than 5 taxable years before the date of relinquishment.
            ``(2) Expatriation date.--The term `expatriation date' 
        means--
                    ``(A) the date an individual relinquishes United 
                States citizenship, or
                    ``(B) in the case of a long-term resident of the 
                United States, the date of the event described in 
                clause (i) or (ii) of paragraph (1)(B).
            ``(3) Relinquishment of citizenship.--A citizen shall be 
        treated as relinquishing his United States citizenship on the 
        earliest of--
                    ``(A) the date the individual renounces his United 
                States nationality before a diplomatic or consular 
                officer of the United States pursuant to paragraph (5) 
                of section 349(a) of the Immigration and Nationality 
                Act (8 U.S.C. 1481(a)(5)),
                    ``(B) the date the individual furnishes to the 
                United States Department of State a signed statement of 
                voluntary relinquishment of United States nationality 
                confirming the performance of an act of expatriation 
                specified in paragraph (1), (2), (3), or (4) of section 
                349(a) of the Immigration and Nationality Act (8 U.S.C. 
                1481(a)(1)-(4)),
                    ``(C) the date the United States Department of 
                State issues to the individual a certificate of loss of 
                nationality, or
                    ``(D) the date a court of the United States cancels 
                a naturalized citizen's certificate of naturalization.
        Subparagraph (A) or (B) shall not apply to any individual 
        unless the renunciation or voluntary relinquishment is 
        subsequently approved by the issuance to the individual of a 
        certificate of loss of nationality by the United States 
        Department of State.
            ``(4) Long-term resident.--
                    ``(A) In general.--The term `long-term resident' 
                means any individual (other than a citizen of the 
                United States) who is a lawful permanent resident of 
                the United States in at least 8 taxable years during 
                the period of 15 taxable years ending with the taxable 
                year during which the sale under subsection (a)(1) is 
                treated as occurring. For purposes of the preceding 
                sentence, an individual shall not be treated as a 
                lawful permanent resident for any taxable year if such 
                individual is treated as a resident of a foreign 
                country for the taxable year under the provisions of a 
                tax treaty between the United States and the foreign 
                country and does not waive the benefits of such
                 treaty applicable to residents of the foreign country.
                    ``(B) Special rule.--For purposes of subparagraph 
                (A), there shall not be taken into account--
                            ``(i) any taxable year during which any 
                        prior sale is treated under subsection (a)(1) 
                        as occurring, or
                            ``(ii) any taxable year prior to the 
                        taxable year referred to in clause (i).
    ``(f) Special Rules Applicable to Beneficiaries' Interests in 
Trust.--
            ``(1) Determination of beneficiaries' interest in trust.--
        For purposes of this section--
                    ``(A) General rule.--A beneficiary's interest in a 
                trust shall be based upon all relevant facts and 
                circumstances, including the terms of the trust 
                instrument and any letter of wishes or similar 
                document, historical patterns of trust distributions, 
                and the existence of and functions performed by a trust 
                protector or any similar advisor.
                    ``(B) Special rule.--The remaining interests in the 
                trust not determined under subparagraph (A) to be held 
                by any beneficiary shall be allocated first to the 
                grantor, if a beneficiary, and then to other 
                beneficiaries under rules prescribed by the Secretary 
                similar to the rules of intestate succession.
                    ``(C) Constructive ownership.--If a beneficiary of 
                a trust is a corporation, partnership, trust, or 
                estate, the shareholders, partners, or beneficiaries 
                shall be deemed to be the trust beneficiaries for 
                purposes of this section.
                    ``(D) Taxpayer return position.--A taxpayer shall 
                clearly indicate on its income tax return--
                            ``(i) the methodology used to determine 
                        that taxpayer's trust interest under this 
                        section, and
                            ``(ii) if the taxpayer knows (or has reason 
                        to know) that any other beneficiary of such 
                        trust is using a different methodology to 
                        determine such beneficiary's trust interest 
                        under this section.
            ``(2) Deemed sale in case of trust interest.--If an 
        individual who is an expatriate is treated under paragraph (1) 
        as holding an interest in a trust for purposes of this 
        section--
                    ``(A) the individual shall not be treated as having 
                sold such interest,
                    ``(B) such interest shall be treated as a separate 
                share in the trust, and
                    ``(C)(i) such separate share shall be treated as a 
                separate trust consisting of the assets allocable to 
                such share,
                    ``(ii) the separate trust shall be treated as 
                having sold its assets immediately before the 
                expatriation date for their fair market value and as 
                having distributed all of its assets to the individual 
                as of such time, and
                    ``(iii) the individual shall be treated as having 
                recontributed the assets to the separate trust.
        Subsection (a)(2) shall apply to any income, gain, or loss of 
        the individual arising from a distribution described in 
        subparagraph (C)(ii).
    ``(g) Termination of Deferrals, Etc.--On the date any property held 
by an individual is treated as sold under subsection (a), 
notwithstanding any other provision of this title--
            ``(1) any period during which recognition of income or gain 
        is deferred shall terminate, and
            ``(2) any extension of time for payment of tax shall cease 
        to apply and the unpaid portion of such tax shall be due and 
        payable at the time and in the manner prescribed by the 
        Secretary.
    ``(h) Rules Relating to Payment of Tax.--
            ``(1) Imposition of tentative tax.--
                    ``(A) In general.--If an individual is required to 
                include any amount in gross income under subsection (a) 
                for any taxable year, there is hereby imposed, 
                immediately before the expatriation date, a tax in an 
                amount equal to the amount of tax which would be 
                imposed if the taxable year were a short taxable year 
                ending on the expatriation date.
                    ``(B) Due date.--The due date for any tax imposed 
                by subparagraph (A) shall be the 90th day after the 
                expatriation date.
                    ``(C) Treatment of tax.--Any tax paid under 
                subparagraph (A) shall be treated as a payment of the 
                tax imposed by this chapter for the taxable year to 
                which subsection (a) applies.
            ``(2) Deferral of tax.--The payment of any tax attributable 
        to amounts included in gross income under subsection (a) may be 
        deferred to the same extent, and in the same manner, as any tax 
        imposed by chapter 11, except that the Secretary may extend the 
        period for extension of time for paying tax under section 6161 
        to such number of years as the Secretary determines 
        appropriate.
            ``(3) Rules relating to security interests.--
                    ``(A) Adequacy of security interests.--In 
                determining the adequacy of any security to be provided 
                under this section, the Secretary may take into account 
                the principles of section 2056A.
                    ``(B) Special rule for trust.--If a taxpayer is 
                required by this section to provide security in 
                connection with any tax imposed by reason of this 
                section with respect to the holding of an interest in a 
                trust and any trustee of such trust is an individual 
                citizen of the United States or a domestic corporation, 
                such trustee shall be required to provide such security 
                upon notification by the taxpayer of such requirement.
    ``(i) Coordination With Estate and Gift Taxes.--If subsection (a) 
applies to property held by an individual for any taxable year and--
            ``(1) such property is includible in the gross estate of 
        such individual solely by reason of section 2107, or
            ``(2) section 2501 applies to a transfer of such property 
        by such individual solely by reason of section 2501(a)(3),
then there shall be allowed as a credit against the additional tax 
imposed by section 2101 or 2501, whichever is applicable, solely by 
reason of section 2107 or 2501(a)(3) an amount equal to the increase in 
the tax imposed by this chapter for such taxable year by reason of this 
section.
    ``(j) Regulations.--The Secretary shall prescribe such regulations 
as may be necessary or appropriate to carry out the purposes of this 
section, including regulations to prevent double taxation by ensuring 
that--
            ``(1) appropriate adjustments are made to basis to reflect 
        gain recognized by reason of subsection (a) and the exclusion 
        provided by subsection (b),
            ``(2) no interest in property is treated as held for 
        purposes of this section by more than one taxpayer, and
            ``(3) any gain by reason of a deemed sale under subsection 
        (a) of an interest in a corporation, partnership, trust, or 
        estate is reduced to reflect that portion of such gain which is 
        attributable to an interest in a trust which a shareholder, 
        partner, or beneficiary is treated as holding directly under 
        subsection (f)(1)(C).
    ``(k) Cross Reference.--

                                ``For income tax treatment of 
individuals who terminate United States citizenship, see section 
7701(a)(47).''.
    (b) Definition of Termination of United States Citizenship.--
Section 7701(a) of the Internal Revenue Code of 1986 is amended by 
adding at the end the following new paragraph:
            ``(47) Termination of united states citizenship.--An 
        individual shall not cease to be treated as a United States 
        citizen before the date on which the individual's citizenship 
        is treated as relinquished under section 877A(e)(3).''.
    (c) Conforming Amendments.--
            (1) Section 877 of the Internal Revenue Code of 1986 is 
        amended by adding at the end the following new subsection:
    ``(f) Application.--This section shall not apply to any individual 
who relinquishes (within the meaning of section 877A(e)(3)) United 
States citizenship on or after February 6, 1995.''.
            (2) Section 2107(c) of such Code is amended by adding at 
        the end the following new paragraph:
            ``(3) Cross reference.--For credit against the tax imposed 
        by subsection (a) for expatriation tax, see section 877A(i).''.
            (3) Section 2501(a)(3) of such Code is amended by adding at 
        the end the following new flush sentence:
        ``For credit against the tax imposed under this section by 
        reason of this paragraph, see section 877A(i).''.
            (4) Section 6851 of such Code is amended by striking 
        subsection (d) and by redesignating subsection (e) as 
        subsection (d).
            (5) Paragraph (10) of section 7701(b) of such Code is 
        amended by adding at the end the following new sentence: ``This 
        paragraph shall not apply to any long-term resident of the 
        United States who is an expatriate (as defined in section 
        877A(e)(1)).''.
    (d) Clerical Amendment.--The table of sections for subpart A of 
part II of subchapter N of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after the item relating to section 877 the 
following new item:

                              ``Sec. 877A. Tax responsibilities of 
                                        expatriation.''.
    (e) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to expatriates (within the meaning of section 877A(e) of 
        the Internal Revenue Code of 1986, as added by this section) 
        whose expatriation date (as so defined) occurs on or after 
        February 6, 1995.
            (2) Due date for tentative tax.--The due date under section 
        877A(h)(1)(B) of such Code shall in no event occur before the 
        90th day after the date of the enactment of this Act.

SEC. 502. BASIS OF ASSETS OF NONRESIDENT ALIEN INDIVIDUALS BECOMING 
              CITIZENS OR RESIDENTS.

    (a) In General.--Part IV of subchapter O of chapter 1 of the 
Internal Revenue Code of 1986 (relating to special rules for gain or 
loss on disposition of property) is amended by redesignating section 
1061 as section 1062 and by inserting after section 1060 the following 
new section:
``SEC. 1061. BASIS OF ASSETS OF NONRESIDENT ALIEN INDIVIDUALS BECOMING 
              CITIZENS OR RESIDENTS.

    ``(a) General Rule.--If a nonresident alien individual becomes a 
citizen or resident of the United States, gain or loss on the 
disposition of any property held on the date the individual becomes 
such a citizen or resident shall be determined by substituting, as of 
the applicable date, the fair market value of such property (on the 
applicable date) for its cost basis.
    ``(b) Exception for Depreciation.--Any deduction under this chapter 
for depreciation, depletion, or amortization shall be determined 
without regard to the application of this section.
    ``(c) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Applicable date.--The term `applicable date' means, 
        with respect to any property to which subsection (a) applies, 
        the earlier of--
                    ``(A) the date the individual becomes a citizen or 
                resident of the United States, or
                    ``(B) the date the property first becomes subject 
                to tax under this subtitle by reason of being used in a 
                United States trade or business or by reason of 
                becoming a United States real property interest (within 
                the meaning of section 897(c)(1)).
            ``(2) Resident.--The term `resident' does not include an 
        individual who is treated as a resident of a foreign country 
        under the provisions of a tax treaty between the United States 
        and a foreign country and who does not waive the benefits of 
        such treaty applicable to residents of the foreign country.
            ``(3) Trusts.--A trust shall not be treated as an 
        individual.
            ``(4) Election not to have section apply.--An individual 
        may elect not to have this section apply solely for purposes of 
        determining gain with respect to any property. Such election 
        shall apply only to property specified in the election and, 
        once made, shall be irrevocable.
            ``(5) Section only to apply once.--This section shall apply 
        only with respect to the first time the individual becomes 
        either a citizen or resident of the United States.
    ``(d) Regulations.--The Secretary shall prescribe regulations for 
purposes of this section, including regulations--
            ``(1) for application of this section in the case of 
        property which consists of a direct or indirect interest in a 
        trust, and
            ``(2) providing look-thru rules in the case of any indirect 
        interest in any United States real property interest (within 
        the meaning of section 897(c)(1)) or property used in a United 
        States trade or business.''
    (b) Conforming Amendment.--The table of sections for part IV of 
subchapter O of chapter 1 of the Internal Revenue Code of 1986 is 
amended by striking the item relating to section 1061 and inserting the 
following new items:

                              ``Sec. 1061. Basis of assets of 
                                        nonresident alien individuals 
                                        becoming citizens or residents.
                              ``Sec. 1062. Cross references.''
    (c) Effective Date.--The amendments made by this section shall 
apply to dispositions after the date of the enactment of this Act, and 
to any disposition occurring on or before such date to which section 
877A of the Internal Revenue Code of 1986 (as added by section 501) 
applies.

SEC. 503. EARNED INCOME TAX CREDIT DENIED TO INDIVIDUALS NOT AUTHORIZED 
              TO BE EMPLOYED IN THE UNITED STATES.

    (a) In General.--Section 32(c)(1) of the Internal Revenue Code of 
1986 (relating to individuals eligible to claim the earned income tax 
credit) is amended by adding at the end the following new subparagraph:
                    ``(F) Identification number requirement.--The term 
                `eligible individual' does not include any individual 
                who does not include on the return of tax for the 
                taxable year--
                            ``(i) such individual's taxpayer 
                        identification number, and
                            ``(ii) if the individual is married (within 
                        the meaning of section 7703), the taxpayer 
                        identification number of such individual's 
                        spouse.''
    (b) Special Identification Number.--Section 32 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
subsection:
    ``(l) Identification Numbers.--Solely for purposes of subsections 
(c)(1)(F) and (c)(3)(D), a taxpayer identification number means a 
social security number issued to an individual by the Social Security 
Administration (other than a social security number issued pursuant to 
clause (II) (or that portion of clause (III) that relates to clause 
(II)) of section 205(c)(2)(B)(i) of the Social Security Act).''
    (c) Extension of Procedures Applicable to Mathematical or Clerical 
Errors.--Section 6213(g)(2) of the Internal Revenue Code of 1986 
(relating to the definition of mathematical or clerical errors) is 
amended by striking ``and' at the end of subparagraph (D), by striking 
the period at the end of subparagraph (E) and inserting ``, and'', and 
by inserting after subparagraph (E) the following new subparagraph:
                    ``(F) an omission of a correct taxpayer 
                identification number required under section 32 
                (relating to the earned income tax credit) to be 
                included on a return.''
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1995.

SEC. 504. EARNED INCOME TAX CREDIT DENIED TO INDIVIDUALS WITH 
              SUBSTANTIAL CAPITAL GAIN NET INCOME.

    (a) In General.--Paragraph (2) of section 32(i) of the Internal 
Revenue Code of 1986 (relating to denial of credit for individuals 
having excessive investment income) is amended--
            (1) by striking ``and'' at the end of subparagraph (B),
            (2) by striking the period at the end of subparagraph (C) 
        and inserting ``, and'', and
            (3) by adding at the end the following new subparagraph:
                    ``(D) capital gain net income for the taxable 
                year.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1995.

SEC. 505. TREATMENT OF DISTRIBUTIONS IN REDEMPTION OF STOCK HELD BY A 
              CORPORATION.

    (a) In General.--Subsection (b) of section 302 of the Internal 
Revenue Code of 1986 (relating to redemptions treated as exchanges) is 
amended by redesignating paragraph (5) as paragraph (6) and by 
inserting after paragraph (4) the following new paragraph:
            ``(5) Redemption from certain corporate shareholders.--
        Except as provided in regulations, subsection (a) shall apply 
        to a distribution in redemption of stock held by a corporation 
        if--
                    ``(A) such redemption is--
                            ``(i) part of a partial liquidation (within 
                        the meaning of subsection (e)) of the redeeming 
                        corporation, or
                            ``(ii) not pro rata as to all shareholders, 
                        and
                    ``(B) such corporation would be entitled to a 
                deduction under section 243, 244, or 245 with respect 
                to such distribution but for the application of this 
                paragraph.
        To the extent provided by regulations, no loss shall be 
        recognized solely by reason of the application of this 
        paragraph.''
    (b) Technical Amendments.--
            (1) Subsection (a) of section 302 of the Internal Revenue 
        Code of 1986 is amended by striking ``or (4)'' and inserting 
        ``(4), or (5)''.
            (2) Paragraph (6) of section 302(b) of such Code (as 
        redesignated by subsection (a)) is amended by striking ``or 
        (4)'' each place it appears and inserting ``(4), or (5)''.
            (3) Subsection (e) of section 1059 of such Code is amended 
        by striking paragraph (1) and by redesignating paragraphs (2) 
        and (3) as paragraphs (1) and (2), respectively.
            (4) Subsection (g) of section 1059 of such Code is amended 
        by inserting ``and section 302(b)(5)'' after ``this section'' 
        in paragraph (1) and in the material preceding paragraph (1).
    (c) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to redemptions after May 3, 1995.
            (2) Exception.--The amendments made by this section shall 
        not apply to any redemption pursuant to the terms of--
                    (A) a written binding contract in effect on May 3, 
                1995, or
                    (B) a tender offer outstanding on May 3, 1995.
SEC. 506. UNIFORM ALIEN ELIGIBILITY CRITERIA FOR PUBLIC ASSISTANCE 
              PROGRAMS.

    (a) Federal and Federally-Assisted Programs.--
            (1) Program eligibility criteria.--
                    (A) Aid to families with dependent children.--
                Section 402(a)(33) (42 U.S.C. 602(a)(33)) is amended by 
                striking ``(A) a citizen'' and all that follows through 
                ``of such Act);'' and inserting the following:
                    ``(A) a citizen or national of the United States, 
                or
                    ``(B) a qualified alien, as defined in section 
                1101(a)(10), provided that such alien is not 
                disqualified from receiving aid under a State plan 
                approved under this part pursuant to section 210(f) or 
                245A(h) of the Immigration and Nationality Act or any 
                other provision of law;''.
                    (B) Supplemental security income.--Section 
                1614(a)(1)(B)(i) (42 U.S.C. 1382c(a)(1)(B)(i) is 
                amended to read as follows:
            ``(B)(i) is a resident of the United States, and is 
        either--
                    ``(I) a citizen or national of the United States, 
                or
                    ``(II) a qualified alien, as defined in section 
                1101(a)(10), or''.
                    (C) Medicaid.--
                            (i) In general.--Section 1903(v) (42 U.S.C. 
                        1396b(v)) is amended--
                                    (I) in paragraph (1), to read as 
                                follows:
    ``(v)(1) Notwithstanding the preceding provisions of this section--
            ``(A) no payment may be made to a State under this section 
        for medical assistance furnished to an individual who is 
        disqualified from receiving such assistance pursuant to section 
        210(f) or 245A(h) of the Immigration and Nationality Act (8 
        U.S.C. 1160(f), 1255a(h)) or any other provision of law; and
            ``(B) except as provided in paragraph (2), no such payment 
        may be made for medical assistance furnished to an individual 
        who is not--
                    ``(i) a citizen or national of the United States; 
                or
                    ``(ii) a qualified alien, as defined in section 
                1101(a)(10).''; and
                                    (II) in paragraph (2)--
                                            (aa) by striking 
                                        ``paragraph (1)'' and inserting 
                                        ``paragraph (1)(B)''; and
                                            (bb) by striking ``alien'' 
                                        each place it appears and 
                                        inserting ``individual''.
                            (ii) Conforming amendments.--Section 1902 
                        (42 U.S.C. 1396a) is amended--
                                    (I) in subsection (a), in the last 
                                sentence by striking ``alien'' and all 
                                that follows through ``1903(v).'' and 
                                inserting ``individual who is not (A) a 
                                citizen or national of the United 
                                States, or (B) a qualified alien, as 
                                defined in section 1101(a)(10), only in 
                                accordance with section 1903(v).''; and
                                    (II) in subsection (b)(33), by 
                                inserting ``or national'' after 
                                ``citizen''.
            (2) Definition of qualified alien.--Section 1101(a) (42 
        U.S.C. 1301(a)) is amended by adding at the end the following 
        new paragraph:
    ``(10) The term `qualified alien' means an alien--
            ``(A) who is lawfully admitted for permanent residence 
        within the meaning of section 101(a)(20) of the Immigration and 
        Nationality Act (8 U.S.C. 1101(a)(20));
            ``(B) who is admitted as a refugee pursuant to section 207 
        of such Act (8 U.S.C. 1157);
            ``(C) who is granted asylum pursuant to section 208 of such 
        Act (8 U.S.C. 1158);
            ``(D) whose deportation is withheld pursuant to section 
        243(h) of such Act (8 U.S.C. 1253(h));
            ``(E) whose deportation is suspended pursuant to section 
        244 of such Act (8 U.S.C. 1254);
            ``(F) who was granted conditional entry pursuant to section 
        203(a)(7) of such Act (8 U.S.C. 1153(a)(7)), as in effect prior 
        to April 1, 1980;
            ``(G) who is lawfully admitted for temporary residence 
        pursuant to section 210 or 245A of such Act (8 U.S.C. 1160, 
        1255a);
            ``(H) who is within a class of aliens lawfully present 
        within the United States pursuant to any other provision of 
        such Act, provided that--
                    ``(i) the Attorney General determines that the 
                continued presence of such class of aliens serves a 
                humanitarian or other compelling public interest; and
                    ``(ii) the Secretary of Health and Human Services 
                determines that such interest would be further served 
                by treating each alien within such class as a 
                `qualified alien' for purposes of this Act; or
            ``(I) who is the spouse or unmarried child under 21 years 
        of age of a citizen of the United States, or the parent of such 
        a citizen if the citizen is 21 years of age or older, and with 
        respect to whom an application for adjustment to lawful 
        permanent residence is pending.''.
            (3) Conforming amendment.--Section 244A(f)(1) of the 
        Immigration and Nationality Act (8 U.S.C. 1254a(f)(1)) is 
        amended by inserting ``and shall not be considered to be a 
        `qualified alien' within the meaning of section 1101(a)(10) of 
        the Social Security Act'' after ``color or law''.
            (4) Effective date.--The amendments made by this subsection 
        are effective with respect to benefits payable on the basis of 
        any application filed after the date of the enactment of this 
        Act.
    (b) State and Local Programs.--A State or political subdivision 
therein may provide that an alien is not eligible for any program of 
assistance based on need that is furnished by such State or political 
subdivision unless such alien is a ``qualified alien'' within the 
meaning of section 1101(a)(10) of the Social Security Act (as added by 
subsection (a)(2) of this section).

SEC. 507. DEEMING OF SPONSOR'S INCOME AND RESOURCES TO AN ALIEN UNDER 
              THE SUPPLEMENTAL SECURITY INCOME, AID TO FAMILIES WITH 
              DEPENDENT CHILDREN, AND FOOD STAMP PROGRAMS.

    (a) Length of Deeming Period.--
            (1) Making the ssi 5-year period permanent.--Subsection (b) 
        of section 7 of the Unemployment Compensation Amendments of 
        1993 (Public Law 103-152) is repealed.
            (2) Increasing the afdc period from 3 to 5 years.--Section 
        415 (42 U.S.C. 615) is amended in subsections (a), (c)(1), and 
        (d) by striking ``three years'' each place it appears and 
        inserting ``5 years''.
            (3) Increasing the food stamp period from 3 to 5 years.--
        Section 5(i) of the Food Stamp Act of 1977 (7 U.S.C. 2014(i)) 
        is amended by striking ``three years'' each place it appears 
        and inserting ``5 years''.
    (b) Inapplicability in the Case of Any Alien Whose Sponsor Receives 
SSI or AFDC Benefits.--
            (1) SSI.--Section 1621(f) (42 U.S.C. 1382j(f)) is amended 
        by adding at the end the following new paragraph:
    ``(3) The provisions of this section shall not apply to any alien 
for any month for which such alien's sponsor receives a benefit under 
this title (which includes, for purposes of this paragraph, the program 
of federally administered State supplementary payments made pursuant to 
section 1616(a) or section 212(b) of Public Law 93-66 (42 U.S.C. 1382 
note)) or under the program of aid to families with dependent children 
under part A of title IV.''.
            (2) AFDC.--Section 415(f) (42 U.S.C. 615(f)) is amended--
                    (A) by redesignating paragraphs (1) through (5) as 
                subparagraphs (A) through (E), respectively;
                    (B) by striking ``(f)'' and inserting ``(f)(1)''; 
                and
                    (C) by adding at the end the following new 
                paragraph:
    ``(2) The provisions of this section shall not apply to any alien 
for any month for which such alien's sponsor receives a benefit under 
the program authorized under this part, or the program of supplemental 
security income authorized under title XVI (which includes, for 
purposes of this paragraph, the program of federally administered State 
supplementary payments made pursuant to section 1616(a) or section 
212(b) of Public Law 93-66 (42 U.S.C. 1382 note)).''.
            (3) Food stamps.--Section 5(i)(2)(E) of the Food Stamp Act 
        of 1977 (7 U.S.C. 2014(i)(2)(E)) is amended--
                    (A) by striking ``(E)'' and inserting ``(E)(i)''; 
                and
                    (B) by adding at the end the following new clause:
            ``(ii) The provisions of this subsection shall not apply to 
        any alien for any month for which such alien's sponsor receives 
        a benefit under the program of aid to families with dependent 
        children under part A of title IV of the Social Security Act or 
        the program of supplemental security income under title XVI of 
        such Act (which includes, for purposes of this paragraph, the 
        program of federally administered State supplementary payments 
        made pursuant to section 1616(a) of such Act or section 212(b) 
        of Public Law 93-66 (42 U.S.C. 1382 note)).''.
    (c) Inequitable Circumstances.--
            (1) SSI.--Section 1621 (42 U.S.C. 1382j) is amended by 
        adding at the end the following new subsection:
    ``(g) The Commissioner may, pursuant to regulations promulgated 
after consultation with the Secretary of Agriculture, alter or suspend 
the application of this section in any case in which the Secretary 
determines that such application would be inequitable under the 
circumstances.''
            (2) AFDC.--Section 415 (42 U.S.C. 615) is amended by adding 
        at the end the following new subsection:
    ``(g) The Secretary may, pursuant to regulations promulgated after 
consultation with the Secretary of Agriculture, alter or suspend the 
application of this section in any case in which the Secretary 
determines that such application would be inequitable under the 
circumstances.''
            (3) Food stamps.--Section 5(i)(2) of the Food Stamp Act of 
        1977 (7 U.S.C. 2014(i)(2)) is amended by adding at the end the 
        following new subparagraph:
            ``(F) The Secretary may, pursuant to regulations 
        promulgated after consultation with the Secretary of Health and 
        Human Services, alter or suspend the application of this 
        section in any case in which the Secretary determines
         that such application would be inequitable under the 
circumstances.''.
    (d) Food Stamps Exemption for Blind or Disabled Aliens.--Section 
5(i)(2)(E) of the Food Stamp Act of 1977 (7 U.S.C. 2014(i)(2)(E)), as 
amended by subsection (a)(2)(C), is amended by adding at the end the 
following new clause:
            ``(iii) The provisions of this subsection shall not apply 
        with respect to any individual for any month for which such 
        individual receives a benefit under the program of supplemental 
        security income authorized by title XVI of the Social Security 
        Act by reason of blindness, as determined under section 
        1614(a)(2) of such Act, or disability, as determined under 
        section 1614(a)(3) of such Act, provided that such blindness or 
        disability commenced after the date of such individual's 
        admission into the United States for permanent residence.''.
    (e) State and Local Programs.--A State or political subdivision 
therein may provide that an alien is not eligible for any program of 
assistance based on need that is furnished by such State or political 
subdivision for any month if such alien has been determined to be 
ineligible for such month for benefits under--
            (A) the program of aid to families with dependent children 
        authorized by part A of title IV of the Social Security Act, as 
        a result of the application of section 415 of such Act;
            (B) the program of supplemental security income authorized 
        by title XVI of the Social Security Act, as a result of the 
        application of section 1621 of such Act; or
            (C) the Food Stamp Act of 1977, as a result of the 
        application of section 5(i) of such Act.
    (f) Effective Date.--
            (1) In general.--The amendments made by subsections (a) 
        through (d) shall be effective with respect to benefits under 
        the program of aid to families with dependent children under 
        part A of title IV of the Social Security Act (42 U.S.C. 601 et 
        seq.), the program of supplemental security income under title 
        XVI of such Act (42 U.S.C. 1381 et seq.), and the program under 
        the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.), payable for 
        months beginning after September 30, 1995, on the basis of--
                    (A) an application filed after such date, or
                    (B) an application filed on or before such date by 
                or on behalf of an individual subject to the provisions 
                of section 1621(a) or 415(a) of the Social Security Act 
                (42 U.S.C. 1382j(a), 615(a)) or section 5(i)(1) of the 
                Food Stamp Act of 1977 (7 U.S.C. 2014(i)(1)) (as the 
                case may be) on such date.
            (2) State and local programs.--Subsection (e) shall be 
        effective on October 1, 1995.
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