[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3130 Engrossed Amendment House (EAH)]


  2d Session

                               H.R. 3130

_______________________________________________________________________

                               AMENDMENTS

                                   TO

                           SENATE AMENDMENTS
                In the House of Representatives, U. S.,

                                                         June 25, 1998.

    Resolved, That the House agree to the amendments of the Senate to the bill 
(H.R. 3130) entitled ``An Act to provide for an alternative penalty procedure 
for States that fail to meet Federal child support data processing requirements, 
to reform Federal incentive payments for effective child support performance, to 
provide for a more flexible penalty procedure for States that violate 
interjurisdictional adoption requirements, to amend the Immigration and 
Nationality Act to make certain aliens determined to be delinquent in the 
payment of child support inadmissible and ineligible for naturalization, and for 
other purposes'', with the following

                              AMENDMENTS:

            Strike out all after the enacting clause and insert:

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Child Support Performance and 
Incentive Act of 1998''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents of this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.

          TITLE I--CHILD SUPPORT DATA PROCESSING REQUIREMENTS

Sec. 101. Alternative penalty procedure.
Sec. 102. Authority to waive single statewide automated data processing 
                            and information retrieval system 
                            requirement.

                TITLE II--CHILD SUPPORT INCENTIVE SYSTEM

Sec. 201. Incentive payments to States.

                     TITLE III--ADOPTION PROVISIONS

Sec. 301. More flexible penalty procedure to be applied for failing to 
                            permit interjurisdictional adoption.

                        TITLE IV--MISCELLANEOUS

Sec. 401. Elimination of barriers to the effective establishment and 
                            enforcement of medical child support.
Sec. 402. Safeguard of new employee information.
Sec. 403. Limitations on use of TANF funds for matching under certain 
                            Federal transportation program.
Sec. 404. Clarification of meaning of high-volume automated 
                            administrative enforcement of child support 
                            in interstate cases.
Sec. 405. General Accounting Office reports.
Sec. 406. Data matching by multistate financial institutions.
Sec. 407. Elimination of unnecessary data reporting.
Sec. 408. Clarification of eligibility under welfare-to-work programs.
Sec. 409. Study of feasibility of implementing immigration provisions 
                            of H.R. 3130, as passed by the House of 
                            Representatives on March 5, 1998.
Sec. 410. Technical corrections.

          TITLE I--CHILD SUPPORT DATA PROCESSING REQUIREMENTS

SEC. 101. ALTERNATIVE PENALTY PROCEDURE.

    (a) In General.--Section 455(a) of the Social Security Act (42 
U.S.C. 655(a)) is amended by adding at the end the following:
    ``(4)(A)(i) If--
            ``(I) the Secretary determines that a State plan under 
        section 454 would (in the absence of this paragraph) be 
        disapproved for the failure of the State to comply with a 
        particular subparagraph of section 454(24), and that the State 
        has made and is continuing to make a good faith effort to so 
        comply; and
            ``(II) the State has submitted to the Secretary a 
        corrective compliance plan that describes how, by when, and at 
        what cost the State will achieve such compliance, which has 
        been approved by the Secretary,
then the Secretary shall not disapprove the State plan under section 
454, and the Secretary shall reduce the amount otherwise payable to the 
State under paragraph (1)(A) of this subsection for the fiscal year by 
the penalty amount.
    ``(ii) All failures of a State during a fiscal year to comply with 
any of the requirements referred to in the same subparagraph of section 
454(24) shall be considered a single failure of the State to comply 
with that subparagraph during the fiscal year for purposes of this 
paragraph.
    ``(B) In this paragraph:
            ``(i) The term `penalty amount' means, with respect to a 
        failure of a State to comply with a subparagraph of section 
        454(24)--
                    ``(I) 4 percent of the penalty base, in the case of 
                the 1st fiscal year in which such a failure by the 
                State occurs (regardless of whether a penalty is 
                imposed under this paragraph with respect to the 
                failure);
                    ``(II) 8 percent of the penalty base, in the case 
                of the 2nd such fiscal year;
                    ``(III) 16 percent of the penalty base, in the case 
                of the 3rd such fiscal year;
                    ``(IV) 25 percent of the penalty base, in the case 
                of the 4th such fiscal year; or
                    ``(V) 30 percent of the penalty base, in the case 
                of the 5th or any subsequent such fiscal year.
            ``(ii) The term `penalty base' means, with respect to a 
        failure of a State to comply with a subparagraph of section 
        454(24) during a fiscal year, the amount otherwise payable to 
        the State under paragraph (1)(A) of this subsection for the 
        preceding fiscal year.
    ``(C)(i) The Secretary shall waive a penalty under this paragraph 
for any failure of a State to comply with section 454(24)(A) during 
fiscal year 1998 if--
            ``(I) on or before August 1, 1998, the State has submitted 
        to the Secretary a request that the Secretary certify the State 
        as having met the requirements of such section;
            ``(II) the Secretary subsequently provides the 
        certification as a result of a timely review conducted pursuant 
        to the request; and
            ``(III) the State has not failed such a review.
    ``(ii) If a State with respect to which a reduction is made under 
this paragraph for a fiscal year with respect to a failure to comply 
with a subparagraph of section 454(24) achieves compliance with such 
subparagraph by the beginning of the succeeding fiscal year, the 
Secretary shall increase the amount otherwise payable to the State 
under paragraph (1)(A) of this subsection for the succeeding fiscal 
year by an amount equal to 90 percent of the reduction for the fiscal 
year.
    ``(D) The Secretary may not impose a penalty under this paragraph 
against a State with respect to a failure to comply with section 
454(24)(B) for a fiscal year if the Secretary is required to impose a 
penalty under this paragraph against the State with respect to a 
failure to comply with section 454(24)(A) for the fiscal year.''.
    (b) Inapplicability of Penalty Under TANF Program.--Section 
409(a)(8)(A)(i)(III) of such Act (42 U.S.C. 609(a)(8)(A)(i)(III)) is 
amended by inserting ``(other than section 454(24))'' before the 
semicolon.

SEC. 102. AUTHORITY TO WAIVE SINGLE STATEWIDE AUTOMATED DATA PROCESSING 
              AND INFORMATION RETRIEVAL SYSTEM REQUIREMENT.

    (a) In General.--Section 452(d)(3) of the Social Security Act (42 
U.S.C. 652(d)(3)) is amended to read as follows:
    ``(3) The Secretary may waive any requirement of paragraph (1) or 
any condition specified under section 454(16), and shall waive the 
single statewide system requirement under sections 454(16) and 454A, 
with respect to a State if--
            ``(A) the State demonstrates to the satisfaction of the 
        Secretary that the State has or can develop an alternative 
        system or systems that enable the State--
                    ``(i) for purposes of section 409(a)(8), to achieve 
                the paternity establishment percentages (as defined in 
                section 452(g)(2)) and other performance measures that 
                may be established by the Secretary;
                    ``(ii) to submit data under section 454(15)(B) that 
                is complete and reliable;
                    ``(iii) to substantially comply with the 
                requirements of this part; and
                    ``(iv) in the case of a request to waive the single 
                statewide system requirement, to--
                            ``(I) meet all functional requirements of 
                        sections 454(16) and 454A;
                            ``(II) ensure that calculation of 
                        distributions meets the requirements of section 
                        457 and accounts for distributions to children 
                        in different families or in different States or 
                        sub-State jurisdictions, and for distributions 
                        to other States;
                            ``(III) ensure that there is only 1 point 
                        of contact in the State which provides seamless 
                        case processing for all interstate case 
                        processing and coordinated, automated 
                        intrastate case management;
                            ``(IV) ensure that standardized data 
                        elements, forms, and definitions are used 
                        throughout the State;
                            ``(V) complete the alternative system in no 
                        more time than it would take to complete a 
                        single statewide system that meets such 
                        requirement; and
                            ``(VI) process child support cases as 
                        quickly, efficiently, and effectively as such 
                        cases would be processed through a single 
                        statewide system that meets such requirement;
            ``(B)(i) the waiver meets the criteria of paragraphs (1), 
        (2), and (3) of section 1115(c); or
            ``(ii) the State provides assurances to the Secretary that 
        steps will be taken to otherwise improve the State's child 
        support enforcement program; and
            ``(C) in the case of a request to waive the single 
        statewide system requirement, the State has submitted to the 
        Secretary separate estimates of the total cost of a single 
        statewide system that meets such requirement, and of any such 
        alternative system or systems, which shall include estimates of 
        the cost of developing and completing the system and of 
        operating and maintaining the system for 5 years, and the 
        Secretary has agreed with the estimates.''.
    (b) Payments to States.--Section 455(a)(1) of such Act (42 U.S.C. 
655(a)(1)) is amended--
            (1) by striking ``and'' at the end of subparagraph (B);
            (2) by striking the semicolon at the end of subparagraph 
        (C) and inserting ``, and''; and
            (3) by inserting after subparagraph (C) the following:
            ``(D) equal to 66 percent of the sums expended by the State 
        during the quarter for an alternative statewide system for 
        which a waiver has been granted under section 452(d)(3), but 
        only to the extent that the total of the sums so expended by 
        the State on or after the date of the enactment of this 
        subparagraph does not exceed the least total cost estimate 
        submitted by the State pursuant to section 452(d)(3)(C) in the 
        request for the waiver;''.

                TITLE II--CHILD SUPPORT INCENTIVE SYSTEM

SEC. 201. INCENTIVE PAYMENTS TO STATES.

    (a) In General.--Part D of title IV of the Social Security Act (42 
U.S.C. 651-669) is amended by inserting after section 458 the 
following:

``SEC. 458A. INCENTIVE PAYMENTS TO STATES.

    ``(a) In General.--In addition to any other payment under this 
part, the Secretary shall, subject to subsection (f), make an incentive 
payment to each State for each fiscal year in an amount determined 
under subsection (b).
    ``(b) Amount of Incentive Payment.--
            ``(1) In general.--The incentive payment for a State for a 
        fiscal year is equal to the incentive payment pool for the 
        fiscal year, multiplied by the State incentive payment share 
        for the fiscal year.
            ``(2) Incentive payment pool.--
                    ``(A) In general.--In paragraph (1), the term 
                `incentive payment pool' means--
                            ``(i) $422,000,000 for fiscal year 2000;
                            ``(ii) $429,000,000 for fiscal year 2001;
                            ``(iii) $450,000,000 for fiscal year 2002;
                            ``(iv) $461,000,000 for fiscal year 2003;
                            ``(v) $454,000,000 for fiscal year 2004;
                            ``(vi) $446,000,000 for fiscal year 2005;
                            ``(vii) $458,000,000 for fiscal year 2006;
                            ``(viii) $471,000,000 for fiscal year 2007;
                            ``(ix) $483,000,000 for fiscal year 2008; 
                        and
                            ``(x) for any succeeding fiscal year, the 
                        amount of the incentive payment pool for the 
                        fiscal year that precedes such succeeding 
                        fiscal year, multiplied by the percentage (if 
                        any) by which the CPI for such preceding fiscal 
                        year exceeds the CPI for the 2nd preceding 
                        fiscal year.
                    ``(B) CPI.--For purposes of subparagraph (A), the 
                CPI for a fiscal year is the average of the Consumer 
                Price Index for the 12-month period ending on September 
                30 of the fiscal year. As used in the preceding 
                sentence, the term `Consumer Price Index' means the 
                last Consumer Price Index for all-urban consumers 
                published by the Department of Labor.
            ``(3) State incentive payment share.--In paragraph (1), the 
        term `State incentive payment share' means, with respect to a 
        fiscal year--
                    ``(A) the incentive base amount for the State for 
                the fiscal year; divided by
                    ``(B) the sum of the incentive base amounts for all 
                of the States for the fiscal year.
            ``(4) Incentive base amount.--In paragraph (3), the term 
        `incentive base amount' means, with respect to a State and a 
        fiscal year, the sum of the applicable percentages (determined 
        in accordance with paragraph (6)) multiplied by the 
        corresponding maximum incentive base amounts for the State for 
        the fiscal year, with respect to each of the following measures 
        of State performance for the fiscal year:
                    ``(A) The paternity establishment performance 
                level.
                    ``(B) The support order performance level.
                    ``(C) The current payment performance level.
                    ``(D) The arrearage payment performance level.
                    ``(E) The cost-effectiveness performance level.
            ``(5) Maximum incentive base amount.--
                    ``(A) In general.--For purposes of paragraph (4), 
                the maximum incentive base amount for a State for a 
                fiscal year is--
                            ``(i) with respect to the performance 
                        measures described in subparagraphs (A), (B), 
                        and (C) of paragraph (4), the State collections 
                        base for the fiscal year; and
                            ``(ii) with respect to the performance 
                        measures described in subparagraphs (D) and (E) 
                        of paragraph (4), 75 percent of the State 
                        collections base for the fiscal year.
                    ``(B) Data required to be complete and reliable.--
                Notwithstanding subparagraph (A), the maximum incentive 
                base amount for a State for a fiscal year with respect 
                to a performance measure described in paragraph (4) is 
                zero, unless the Secretary determines, on the basis of 
                an audit performed under section 452(a)(4)(C)(i), that 
                the data which the State submitted pursuant to section 
                454(15)(B) for the fiscal year and which is used to 
                determine the performance level involved is complete 
                and reliable.
                    ``(C) State collections base.--For purposes of 
                subparagraph (A), the State collections base for a 
                fiscal year is equal to the sum of--
                            ``(i) 2 times the sum of--
                                    ``(I) the total amount of support 
                                collected during the fiscal year under 
                                the State plan approved under this part 
                                in cases in which the support 
                                obligation involved is required to be 
                                assigned to the State pursuant to part 
                                A or E of this title or title XIX; and
                                    ``(II) the total amount of support 
                                collected during the fiscal year under 
                                the State plan approved under this part 
                                in cases in which the support 
                                obligation involved was so assigned 
                                but, at the time of collection, is not 
                                required to be so assigned; and
                            ``(ii) the total amount of support 
                        collected during the fiscal year under the 
                        State plan approved under this part in all 
                        other cases.
            ``(6) Determination of applicable percentages based on 
        performance levels.--
                    ``(A) Paternity establishment.--
                            ``(i) Determination of paternity 
                        establishment performance level.--The paternity 
                        establishment performance level for a State for 
                        a fiscal year is, at the option of the State, 
                        the IV-D paternity establishment percentage 
                        determined under section 452(g)(2)(A) or the 
                        statewide paternity establishment percentage 
                        determined under section 452(g)(2)(B).
                            ``(ii) Determination of applicable 
                        percentage.--The applicable percentage with 
                        respect to a State's paternity establishment 
                        performance level is as follows:
      

------------------------------------------------------------------------
``If the paternity establishment performance level is:                  
-------------------------------------------------------  The applicable 
            At least:                 But less than:     percentage is: 
------------------------------------------------------------------------
80%..............................  ...................         100      
79%..............................  80%................         98       
78%..............................  79%................         96       
77%..............................  78%................         94       
76%..............................  77%................         92       
75%..............................  76%................         90       
74%..............................  75%................         88       
73%..............................  74%................         86       
72%..............................  73%................         84       
71%..............................  72%................         82       
70%..............................  71%................         80       
69%..............................  70%................         79       
68%..............................  69%................         78       
67%..............................  68%................         77       
66%..............................  67%................         76       
65%..............................  66%................         75       
64%..............................  65%................         74       
63%..............................  64%................         73       
62%..............................  63%................         72       
61%..............................  62%................         71       
60%..............................  61%................         70       
59%..............................  60%................         69       
58%..............................  59%................         68       
57%..............................  58%................         67       
56%..............................  57%................         66       
55%..............................  56%................         65       
54%..............................  55%................         64       
53%..............................  54%................         63       
52%..............................  53%................         62       
51%..............................  52%................         61       
50%..............................  51%................         60       
0%...............................  50%................         0.       
------------------------------------------------------------------------

                        Notwithstanding the preceding sentence, if the 
                        paternity establishment performance level of a 
                        State for a fiscal year is less than 50 percent 
                        but exceeds by at least 10 percentage points 
                        the paternity establishment performance level 
                        of the State for the immediately preceding 
                        fiscal year, then the applicable percentage 
                        with respect to the State's paternity 
                        establishment performance level is 50 percent.
                    ``(B) Establishment of child support orders.--
                            ``(i) Determination of support order 
                        performance level.--The support order 
                        performance level for a State for a fiscal year 
                        is the percentage of the total number of cases 
                        under the State plan approved under this part 
                        in which there is a support order during the 
                        fiscal year.
                            ``(ii) Determination of applicable 
                        percentage.--The applicable percentage with 
                        respect to a State's support order performance 
                        level is as follows:
      

------------------------------------------------------------------------
     ``If the support order performance level is:                       
-------------------------------------------------------  The applicable 
            At least:                 But less than:     percentage is: 
------------------------------------------------------------------------
80%..............................  ...................         100      
79%..............................  80%................         98       
78%..............................  79%................         96       
77%..............................  78%................         94       
76%..............................  77%................         92       
75%..............................  76%................         90       
74%..............................  75%................         88       
73%..............................  74%................         86       
72%..............................  73%................         84       
71%..............................  72%................         82       
70%..............................  71%................         80       
69%..............................  70%................         79       
68%..............................  69%................         78       
67%..............................  68%................         77       
66%..............................  67%................         76       
65%..............................  66%................         75       
64%..............................  65%................         74       
63%..............................  64%................         73       
62%..............................  63%................         72       
61%..............................  62%................         71       
60%..............................  61%................         70       
59%..............................  60%................         69       
58%..............................  59%................         68       
57%..............................  58%................         67       
56%..............................  57%................         66       
55%..............................  56%................         65       
54%..............................  55%................         64       
53%..............................  54%................         63       
52%..............................  53%................         62       
51%..............................  52%................         61       
50%..............................  51%................         60       
0%...............................  50%................         0.       
------------------------------------------------------------------------

                        Notwithstanding the preceding sentence, if the 
                        support order performance level of a State for 
                        a fiscal year is less than 50 percent but 
                        exceeds by at least 5 percentage points the 
                        support order performance level of the State 
                        for the immediately preceding fiscal year, then 
                        the applicable percentage with respect to the 
                        State's support order performance level is 50 
                        percent.
                    ``(C) Collections on current child support due.--
                            ``(i) Determination of current payment 
                        performance level.--The current payment 
                        performance level for a State for a fiscal year 
                        is equal to the total amount of current support 
                        collected during the fiscal year under the 
                        State plan approved under this part divided by 
                        the total amount of current support owed during 
                        the fiscal year in all cases under the State 
                        plan, expressed as a percentage.
                            ``(ii) Determination of applicable 
                        percentage.--The applicable percentage with 
                        respect to a State's current payment 
                        performance level is as follows:
      

------------------------------------------------------------------------
    ``If the current payment performance level is:                      
-------------------------------------------------------  The applicable 
            At least:                 But less than:     percentage is: 
------------------------------------------------------------------------
80%..............................  ...................         100      
79%..............................  80%................         98       
78%..............................  79%................         96       
77%..............................  78%................         94       
76%..............................  77%................         92       
75%..............................  76%................         90       
74%..............................  75%................         88       
73%..............................  74%................         86       
72%..............................  73%................         84       
71%..............................  72%................         82       
70%..............................  71%................         80       
69%..............................  70%................         79       
68%..............................  69%................         78       
67%..............................  68%................         77       
66%..............................  67%................         76       
65%..............................  66%................         75       
64%..............................  65%................         74       
63%..............................  64%................         73       
62%..............................  63%................         72       
61%..............................  62%................         71       
60%..............................  61%................         70       
59%..............................  60%................         69       
58%..............................  59%................         68       
57%..............................  58%................         67       
56%..............................  57%................         66       
55%..............................  56%................         65       
54%..............................  55%................         64       
53%..............................  54%................         63       
52%..............................  53%................         62       
51%..............................  52%................         61       
50%..............................  51%................         60       
49%..............................  50%................         59       
48%..............................  49%................         58       
47%..............................  48%................         57       
46%..............................  47%................         56       
45%..............................  46%................         55       
44%..............................  45%................         54       
43%..............................  44%................         53       
42%..............................  43%................         52       
41%..............................  42%................         51       
40%..............................  41%................         50       
0%...............................  40%................         0.       
------------------------------------------------------------------------

                        Notwithstanding the preceding sentence, if the 
                        current payment performance level of a State 
                        for a fiscal year is less than 40 percent but 
                        exceeds by at least 5 percentage points the 
                        current payment performance level of the State 
                        for the immediately preceding fiscal year, then 
                        the applicable percentage with respect to the 
                        State's current payment performance level is 50 
                        percent.
                    ``(D) Collections on child support arrearages.--
                            ``(i) Determination of arrearage payment 
                        performance level.--The arrearage payment 
                        performance level for a State for a fiscal year 
                        is equal to the total number of cases under the 
                        State plan approved under this part in which 
                        payments of past-due child support were 
                        received during the fiscal year and part or all 
                        of the payments were distributed to the family 
                        to whom the past-due child support was owed 
                        (or, if all past-due child support owed to the 
                        family was, at the time of receipt, subject to 
                        an assignment to the State, part or all of the 
                        payments were retained by the State) divided by 
                        the total number of cases under the State plan 
                        in which there is past-due child support, 
                        expressed as a percentage.
                            ``(ii) Determination of applicable 
                        percentage.--The applicable percentage with 
                        respect to a State's arrearage payment 
                        performance level is as follows:
      

------------------------------------------------------------------------
   ``If the arrearage payment performance level is:                     
-------------------------------------------------------  The applicable 
            At least:                 But less than:     percentage is: 
------------------------------------------------------------------------
80%..............................  ...................         100      
79%..............................  80%................         98       
78%..............................  79%................         96       
77%..............................  78%................         94       
76%..............................  77%................         92       
75%..............................  76%................         90       
74%..............................  75%................         88       
73%..............................  74%................         86       
72%..............................  73%................         84       
71%..............................  72%................         82       
70%..............................  71%................         80       
69%..............................  70%................         79       
68%..............................  69%................         78       
67%..............................  68%................         77       
66%..............................  67%................         76       
65%..............................  66%................         75       
64%..............................  65%................         74       
63%..............................  64%................         73       
62%..............................  63%................         72       
61%..............................  62%................         71       
60%..............................  61%................         70       
59%..............................  60%................         69       
58%..............................  59%................         68       
57%..............................  58%................         67       
56%..............................  57%................         66       
55%..............................  56%................         65       
54%..............................  55%................         64       
53%..............................  54%................         63       
52%..............................  53%................         62       
51%..............................  52%................         61       
50%..............................  51%................         60       
49%..............................  50%................         59       
48%..............................  49%................         58       
47%..............................  48%................         57       
46%..............................  47%................         56       
45%..............................  46%................         55       
44%..............................  45%................         54       
43%..............................  44%................         53       
42%..............................  43%................         52       
41%..............................  42%................         51       
40%..............................  41%................         50       
0%...............................  40%................         0.       
------------------------------------------------------------------------

                        Notwithstanding the preceding sentence, if the 
                        arrearage payment performance level of a State 
                        for a fiscal year is less than 40 percent but 
                        exceeds by at least 5 percentage points the 
                        arrearage payment performance level of the 
                        State for the immediately preceding fiscal 
                        year, then the applicable percentage with 
                        respect to the State's arrearage payment 
                        performance level is 50 percent.
                    ``(E) Cost-effectiveness.--
                            ``(i) Determination of cost-effectiveness 
                        performance level.--The cost-effectiveness 
                        performance level for a State for a fiscal year 
                        is equal to the total amount collected during 
                        the fiscal year under the State plan approved 
                        under this part divided by the total amount 
                        expended during the fiscal year under the State 
                        plan, expressed as a ratio.
                            ``(ii) Determination of applicable 
                        percentage.--The applicable percentage with 
                        respect to a State's cost-effectiveness 
                        performance level is as follows:
      

------------------------------------------------------------------------
   ``If the cost-effectiveness performance level is:                    
-------------------------------------------------------  The applicable 
            At least:                 But less than:     percentage is: 
------------------------------------------------------------------------
5.00.............................  ...................         100      
4.50.............................  4.99...............         90       
4.00.............................  4.50...............         80       
3.50.............................  4.00...............         70       
3.00.............................  3.50...............         60       
2.50.............................  3.00...............         50       
2.00.............................  2.50...............         40       
0.00.............................  2.00...............         0.       
------------------------------------------------------------------------

    ``(c) Treatment of Interstate Collections.--In computing incentive 
payments under this section, support which is collected by a State at 
the request of another State shall be treated as having been collected 
in full by both States, and any amounts expended by a State in carrying 
out a special project assisted under section 455(e) shall be excluded.
    ``(d) Administrative Provisions.--The amounts of the incentive 
payments to be made to the States under this section for a fiscal year 
shall be estimated by the Secretary at or before the beginning of the 
fiscal year on the basis of the best information available. The 
Secretary shall make the payments for the fiscal year, on a quarterly 
basis (with each quarterly payment being made no later than the 
beginning of the quarter involved), in the amounts so estimated, 
reduced or increased to the extent of any overpayments or underpayments 
which the Secretary determines were made under this section to the 
States involved for prior periods and with respect to which adjustment 
has not already been made under this subsection. Upon the making of any 
estimate by the Secretary under the preceding sentence, any 
appropriations available for payments under this section are deemed 
obligated.
    ``(e) Regulations.--The Secretary shall prescribe such regulations 
as may be necessary governing the calculation of incentive payments 
under this section, including directions for excluding from the 
calculations certain closed cases and cases over which the States do 
not have jurisdiction.
    ``(f) Reinvestment.--A State to which a payment is made under this 
section shall expend the full amount of the payment to supplement, and 
not supplant, other funds used by the State--
            ``(1) to carry out the State plan approved under this part; 
        or
            ``(2) for any activity (including cost-effective contracts 
        with local agencies) approved by the Secretary, whether or not 
        the expenditures for the activity are eligible for 
        reimbursement under this part, which may contribute to 
        improving the effectiveness or efficiency of the State program 
        operated under this part.''.
    (b) Transition Rule.--Notwithstanding any other provision of law--
            (1) for fiscal year 2000, the Secretary shall reduce by \1/
        3\ the amount otherwise payable to a State under section 458 of 
        the Social Security Act, and shall reduce by \2/3\ the amount 
        otherwise payable to a State under section 458A of such Act; 
        and
            (2) for fiscal year 2001, the Secretary shall reduce by \2/
        3\ the amount otherwise payable to a State under section 458 of 
        the Social Security Act, and shall reduce by \1/3\ the amount 
        otherwise payable to a State under section 458A of such Act.
    (c) Regulations.--Within 9 months after the date of the enactment 
of this section, the Secretary of Health and Human Services shall 
prescribe regulations governing the implementation of section 458A of 
the Social Security Act when such section takes effect and the 
implementation of subsection (b) of this section.
    (d) Studies.--
            (1) General review of new incentive payment system.--
                    (A) In general.--The Secretary of Health and Human 
                Services shall conduct a study of the implementation of 
                the incentive payment system established by section 
                458A of the Social Security Act, in order to identify 
                the problems and successes of the system.
                    (B) Reports to the congress.--
                            (i) Report on variations in state 
                        performance attributable to demographic 
                        variables.--Not later than October 1, 2000, the 
                        Secretary shall submit to the Congress a report 
                        that identifies any demographic or economic 
                        variables that account for differences in the 
                        performance levels achieved by the States with 
                        respect to the performance measures used in the 
                        system, and contains the recommendations of the 
                        Secretary for such adjustments to the system as 
                        may be necessary to ensure that the relative 
                        performance of States is measured from a 
                        baseline that takes account of any such 
                        variables.
                            (ii) Interim report.--Not later than March 
                        1, 2001, the Secretary shall submit to the 
                        Congress an interim report that contains the 
                        findings of the study required by subparagraph 
                        (A).
                            (iii) Final report.--Not later than October 
                        1, 2003, the Secretary shall submit to the 
                        Congress a final report that contains the final 
                        findings of the study required by subparagraph 
                        (A). The report shall include any 
                        recommendations for changes in the system that 
                        the Secretary determines would improve the 
                        operation of the child support enforcement 
                        program.
            (2) Development of medical support incentive.--
                    (A) In general.--The Secretary of Health and Human 
                Services, in consultation with State directors of 
                programs operated under part D of title IV of the 
                Social Security Act and representatives of children 
                potentially eligible for medical support, shall develop 
                a performance measure based on the effectiveness of 
                States in establishing and enforcing medical support 
                obligations, and shall make recommendations for the 
                incorporation of the measure, in a revenue neutral 
                manner, into the incentive payment system established 
                by section 458A of the Social Security Act.
                    (B) Report.--Not later than October 1, 1999, the 
                Secretary shall submit to the Congress a report that 
                describes the performance measure and contains the 
                recommendations required by subparagraph (A).
    (e) Technical Amendments.--
            (1) In general.--Section 341 of the Personal Responsibility 
        and Work Opportunity Reconciliation Act of 1996 (42 U.S.C. 658 
        note) is amended--
                    (A) by striking subsection (a) and redesignating 
                subsections (b), (c), and (d) as subsections (a), (b), 
                and (c), respectively; and
                    (B) in subsection (c) (as so redesignated)--
                            (i) by striking paragraph (1) and inserting 
                        the following:
            ``(1) Conforming amendments to present system.--The 
        amendments made by subsection (a) of this section shall become 
        effective with respect to a State as of the date the amendments 
        made by section 103(a) (without regard to section 116(a)(2)) 
        first apply to the State.''; and
                            (ii) in paragraph (2), by striking ``(c)'' 
                        and inserting ``(b)''.
            (2) Effective date.--The amendments made by this subsection 
        shall take effect as if included in the enactment of section 
        341 of the Personal Responsibility and Work Opportunity 
        Reconciliation Act of 1996.
    (f) Elimination of Predecessor Incentive Payment System.--
            (1) Repeal.--Section 458 of the Social Security Act (42 
        U.S.C. 658) is repealed.
            (2) Conforming amendments.--
                    (A) Section 458A of the Social Security Act, as 
                added by section 201(a) of this Act, is redesignated as 
                section 458.
                    (B) Section 455(a)(4)(C)(iii) of such Act (42 
                U.S.C. 655(a)(4)(C)(iii)), as added by section 101(a) 
                of this Act, is amended--
                            (i) by striking ``458A(b)(4)'' and 
                        inserting ``458(b)(4)'';
                            (ii) by striking ``458A(b)(6)'' and 
                        inserting ``458(b)(6)''; and
                            (iii) by striking ``458A(b)(5)(B)'' and 
                        inserting ``458(b)(5)(B)''.
                    (C) Subsection (d)(1) of this section is amended by 
                striking ``458A'' and inserting ``458''.
            (3) Effective date.--The amendments made by this subsection 
        shall take effect on October 1, 2001.
    (g) General Effective Date.--Except as otherwise provided in this 
section, the amendments made by this section shall take effect on 
October 1, 1999.

                     TITLE III--ADOPTION PROVISIONS

SEC. 301. MORE FLEXIBLE PENALTY PROCEDURE TO BE APPLIED FOR FAILING TO 
              PERMIT INTERJURISDICTIONAL ADOPTION.

    (a) Conversion of Funding Ban Into State Plan Requirement.--Section 
471(a) of the Social Security Act (42 U.S.C. 671(a)) is amended--
            (1) by striking ``and'' at the end of paragraph (21);
            (2) by striking the period at the end of paragraph (22) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(23) provides that the State shall not--
                    ``(A) deny or delay the placement of a child for 
                adoption when an approved family is available outside 
                of the jurisdiction with responsibility for handling 
                the case of the child; or
                    ``(B) fail to grant an opportunity for a fair 
                hearing, as described in paragraph (12), to an 
                individual whose allegation of a violation of 
                subparagraph (A) of this paragraph is denied by the 
                State or not acted upon by the State with reasonable 
                promptness.''.
    (b) Penalty for Noncompliance.--Section 474(d) of such Act (42 
U.S.C. 674(d)) is amended in each of paragraphs (1) and (2) by striking 
``section 471(a)(18)'' and inserting ``paragraph (18) or (23) of 
section 471(a)''.
    (c) Conforming Amendment.--Section 474 of such Act (42 U.S.C. 674) 
is amended by striking subsection (e).
    (d) Retroactivity.--The amendments made by this section shall take 
effect as if included in the enactment of section 202 of the Adoption 
and Safe Families Act of 1997 (Public Law 105-89; 111 Stat. 2125).

                        TITLE IV--MISCELLANEOUS

SEC. 401. ELIMINATION OF BARRIERS TO THE EFFECTIVE ESTABLISHMENT AND 
              ENFORCEMENT OF MEDICAL CHILD SUPPORT.

    (a) Study on Effectiveness of Enforcement of Medical Support by 
State Agencies.--
            (1) Medical child support working group.--Within 60 days 
        after the date of the enactment of this Act, the Secretary of 
        Health and Human Services and the Secretary of Labor shall 
        jointly establish a Medical Child Support Working Group. The 
        purpose of the Working Group shall be to identify the 
        impediments to the effective enforcement of medical support by 
        State agencies administering the programs operated pursuant to 
        part D of title IV of the Social Security Act.
            (2) Membership.--The Working Group shall consist of not 
        more than 30 members and shall be composed of representatives 
        of--
                    (A) the Department of Labor;
                    (B) the Department of Health and Human Services;
                    (C) State directors of programs under part D of 
                title IV of the Social Security Act;
                    (D) State directors of the medicaid program under 
                title XIX of the Social Security Act;
                    (E) employers, including owners of small businesses 
                and their trade or industry representatives and 
                certified human resource and payroll professionals;
                    (F) plan administrators and plan sponsors of group 
                health plans (as defined in section 607(1) of the 
                Employee Retirement Income Security Act of 1974 (29 
                U.S.C. 1167(1));
                    (G) children potentially eligible for medical 
                support, such as child advocacy organizations;
                    (H) State medical child support programs; and
                    (I) organizations representing State child support 
                programs.
            (3) Compensation.--The members shall serve without 
        compensation.
            (4) Administrative support.--The Department of Health and 
        Human Services and the Department of Labor shall jointly 
        provide appropriate administrative support to the Working 
        Group, including technical assistance. The Working Group may 
        use the services and facilities of either such Department, with 
        or without reimbursement, as jointly determined by such 
        Departments.
            (5) Report.--
                    (A) Report by working group to the secretaries.--
                Not later than 18 months after the date of the 
                enactment of this Act, the Working Group shall submit 
                to the Secretary of Labor and the Secretary of Health 
                and Human Services a report containing recommendations 
                for appropriate measures to address the impediments to 
                the effective enforcement of medical support by State 
                agencies administering the programs operated pursuant 
                to part D of title IV of the Social Security Act 
                identified by the Working Group, including--
                            (i) recommendations based on assessments of 
                        the form and content of the National Medical 
                        Support Notice, as issued under interim 
                        regulations;
                            (ii) appropriate measures that establish 
                        the priority of withholding of child support 
                        obligations, medical support obligations, 
                        arrearages in such obligations, and, in the 
                        case of a medical support obligation, the 
                        employee's portion of any health care coverage 
                        premium, by such State agencies in light of the 
                        restrictions on garnishment provided under 
                        title III of the Consumer Credit Protection Act 
                        (15 U.S.C. 1671-1677);
                            (iii) appropriate procedures for 
                        coordinating the provision, enforcement, and 
                        transition of health care coverage under the 
                        State programs operated pursuant to part D of 
                        title IV of the Social Security Act and titles 
                        XIX and XXI of such Act;
                            (iv) appropriate measures to improve the 
                        availability of alternate types of medical 
                        support that are aside from health coverage 
                        offered through the noncustodial parent's 
                        health plan and unrelated to the noncustodial 
                        parent's employer, including measures that 
                        establish a noncustodial parent's 
                        responsibility to share the cost of premiums, 
                        copayments, deductibles, or payments for 
                        services not covered under a child's existing 
                        health coverage;
                            (v) recommendations on whether reasonable 
                        cost should remain a consideration under 
                        section 452(f) of the Social Security Act; and
                            (vi) appropriate measures for eliminating 
                        any other impediments to the effective 
                        enforcement of medical support orders that the 
                        Working Group deems necessary.
                    (B) Report by secretaries to the congress.--Not 
                later than 2 months after receipt of the report 
                pursuant to subparagraph (A), the Secretaries shall 
                jointly submit a report to each House of the Congress 
                regarding the recommendations contained in the report 
                under subparagraph (A).
            (6) Termination.--The Working Group shall terminate 30 days 
        after the date of the issuance of its report under paragraph 
        (5).
    (b) Promulgation of National Medical Support Notice.--
            (1) In general.--The Secretary of Health and Human Services 
        and the Secretary of Labor shall jointly develop and promulgate 
        by regulation a National Medical Support Notice, to be issued 
        by States as a means of enforcing the health care coverage 
        provisions in a child support order.
            (2) Requirements.--The National Medical Support Notice 
        shall--
                    (A) conform with the requirements which apply to 
                medical child support orders under section 609(a)(3) of 
                the Employee Retirement Income Security Act of 1974 (29 
                U.S.C. 1169(a)(3)) in connection with group health 
                plans (subject to section 609(a)(4) of such Act), 
                irrespective of whether the group health plan is 
                covered under section 4 of such Act;
                    (B) conform with the requirements of part D of 
                title IV of the Social Security Act; and
                    (C) include a separate and easily severable 
                employer withholding notice, informing the employer 
                of--
                            (i) applicable provisions of State law 
                        requiring the employer to withhold any employee 
                        contributions due under any group health plan 
                        in connection with coverage required to be 
                        provided under such order;
                            (ii) the duration of the withholding 
                        requirement;
                            (iii) the applicability of limitations on 
                        any such withholding under title III of the 
                        Consumer Credit Protection Act;
                            (iv) the applicability of any 
                        prioritization required under State law between 
                        amounts to be withheld for purposes of cash 
                        support and amounts to be withheld for purposes 
                        of medical support, in cases where available 
                        funds are insufficient for full withholding for 
                        both purposes; and
                            (v) the name and telephone number of the 
                        appropriate unit or division to contact at the 
                        State agency regarding the National Medical 
                        Support Notice.
            (3) Procedures.--The regulations promulgated pursuant to 
        paragraph (1) shall include appropriate procedures for the 
        transmission of the National Medical Support Notice to 
        employers by State agencies administering the programs operated 
        pursuant to part D of title IV of the Social Security Act.
            (4) Interim regulations.--Not later than 10 months after 
        the date of the enactment of this Act, the Secretaries shall 
        issue interim regulations providing for the National Medical 
        Support Notice.
            (5) Final regulations.--Not later than 1 year after the 
        issuance of the interim regulations under paragraph (4), the 
        Secretary of Health and Human Services and the Secretary of 
        Labor shall jointly issue final regulations providing for the 
        National Medical Support Notice.
    (c) Required Use by States of National Medical Support Notices.--
            (1) State procedures.--Section 466(a)(19) of the Social 
        Security Act (42 U.S.C. 666(a)(19)) is amended to read as 
        follows:
            ``(19) Health care coverage.--Procedures under which--
                    ``(A) effective as provided in section 401(c)(3) of 
                the Child Support Performance and Incentive Act of 
                1998, all child support orders enforced pursuant to 
                this part which include a provision for the health care 
                coverage of the child are enforced, where appropriate, 
                through the use of the National Medical Support Notice 
                promulgated pursuant to section 401(b) of the Child 
                Support Performance and Incentive Act of 1998 (and 
                referred to in section 609(a)(5)(C) of the Employee 
                Retirement Income Security Act of 1974 in connection 
                with group health plans covered under title I of such 
                Act, in section 401(e)(3)(C) of the Child Support 
                Performance and Incentive Act of 1998 in connection 
                with State or local group health plans, and in section 
                401(f)(5)(C) of such Act in connection with church 
                group health plans);
                    ``(B) unless alternative coverage is allowed for in 
                any order of the court (or other entity issuing the 
                child support order), in any case in which a 
                noncustodial parent is required under the child support 
                order to provide such health care coverage and the 
                employer of such noncustodial parent is known to the 
                State agency--
                            ``(i) the State agency uses the National 
                        Medical Support Notice to transfer notice of 
                        the provision for the health care coverage of 
                        the child to the employer;
                            ``(ii) within 20 business days after the 
                        date of the National Medical Support Notice, 
                        the employer is required to transfer the 
                        Notice, excluding the severable employer 
                        withholding notice described in section 
                        401(b)(2)(C) of the Child Support Performance 
                        and Incentive Act of 1998, to the appropriate 
                        plan providing any such health care coverage 
                        for which the child is eligible;
                            ``(iii) in any case in which the 
                        noncustodial parent is a newly hired employee 
                        entered in the State Directory of New Hires 
                        pursuant to section 453A(e), the State agency 
                        provides, where appropriate, the National 
                        Medical Support Notice, together with an income 
                        withholding notice issued pursuant to section 
                        466(b), within 2 days after the date of the 
                        entry of such employee in such Directory; and
                            ``(iv) in any case in which the employment 
                        of the noncustodial parent with any employer 
                        who has received a National Medical Support 
                        Notice is terminated, such employer is required 
                        to notify the State agency of such termination; 
                        and
                    ``(C) any liability of the noncustodial parent to 
                such plan for employee contributions which are required 
                under such plan for enrollment of the child is 
                effectively subject to appropriate enforcement, unless 
                the noncustodial parent contests such enforcement based 
                on a mistake of fact.''.
            (2) Conforming amendments.--Section 452(f) of such Act (42 
        U.S.C. 652(f)) is amended in the first sentence--
                    (A) by striking ``petition for the inclusion of'' 
                and inserting ``include''; and
                    (B) by inserting ``and enforce medical support'' 
                before ``whenever''.
            (3) Effective date.--The amendments made by this subsection 
        shall be effective with respect to periods beginning on or 
        after the later of--
                    (A) October 1, 2001; or
                    (B) the effective date of laws enacted by the 
                legislature of such State implementing such amendments,
        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 preceding sentence, 
        in the case of a State that has a two-year legislative session, 
        each year of such session shall be deemed to be a separate 
        regular session of the State legislature.
    (d) National Medical Support Notice Deemed under ERISA a Qualified 
Medical Child Support Order.--Section 609(a)(5) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1169(a)(5)) is 
amended by adding at the end the following:
                    ``(C) National medical support notice deemed to be 
                a qualified medical child support order.--
                            ``(i) In general.--If the plan 
                        administrator of a group health plan which is 
                        maintained by the employer of a noncustodial 
                        parent of a child or to which such an employer 
                        contributes receives an appropriately completed 
                        National Medical Support Notice promulgated 
                        pursuant to section 401(b) of the Child Support 
                        Performance and Incentive Act of 1998 in the 
                        case of such child, and the Notice meets the 
                        requirements of paragraphs (3) and (4), the 
                        Notice shall be deemed to be a qualified 
                        medical child support order in the case of such 
                        child.
                            ``(ii) Enrollment of child in plan.--In any 
                        case in which an appropriately completed 
                        National Medical Support Notice is issued in 
                        the case of a child of a participant under a 
                        group health plan who is a noncustodial parent 
                        of the child, and the Notice is deemed under 
                        clause (i) to be a qualified medical child 
                        support order, the plan administrator, within 
                        40 business days after the date of the Notice, 
                        shall--
                                    ``(I) notify the State agency 
                                issuing the Notice with respect to such 
                                child whether coverage of the child is 
                                available under the terms of the plan 
                                and, if so, whether such child is 
                                covered under the plan and either the 
                                effective date of the coverage or, if 
                                necessary, any steps to be taken by the 
                                custodial parent (or by the official of 
                                a State or political subdivision 
                                thereof substituted for the name of 
                                such child pursuant to paragraph 
                                (3)(A)) to effectuate the coverage; and
                                    ``(II) provide to the custodial 
                                parent (or such substituted official) a 
                                description of the coverage available 
                                and any forms or documents necessary to 
                                effectuate such coverage.
                            ``(iii) Rule of construction.--Nothing in 
                        this subparagraph shall be construed as 
                        requiring a group health plan, upon receipt of 
                        a National Medical Support Notice, to provide 
                        benefits under the plan (or eligibility for 
                        such benefits) in addition to benefits (or 
                        eligibility for benefits) provided under the 
                        terms of the plan as of immediately before 
                        receipt of such Notice.''.
    (e) National Medical Support Notices for State or Local 
Governmental Group Health Plans.--
            (1) In general.--Each State or local governmental group 
        health plan shall provide benefits in accordance with the 
        applicable requirements of any National Medical Support Notice.
            (2) Enrollment of child in plan.--In any case in which an 
        appropriately completed National Medical Support Notice is 
        issued in the case of a child of a participant under a State or 
        local governmental group health plan who is a noncustodial 
        parent of the child, the plan administrator, within 40 business 
        days after the date of the Notice, shall--
                    (A) notify the State agency issuing the Notice with 
                respect to such child whether coverage of the child is 
                available under the terms of the plan and, if so, 
                whether such child is covered under the plan and either 
                the effective date of the coverage or any steps 
                necessary to be taken by the custodial parent (or by 
                any official of a State or political subdivision 
                thereof substituted in the Notice for the name of such 
                child in accordance with procedures appliable under 
                subsection (b)(2) of this section) to effectuate the 
                coverage; and
                    (B) provide to the custodial parent (or such 
                substituted official) a description of the coverage 
                available and any forms or documents necessary to 
                effectuate such coverage.
            (3) Rule of construction.--Nothing in this subsection shall 
        be construed as requiring a State or local governmental group 
        health plan, upon receipt of a National Medical Support Notice, 
        to provide benefits under the plan (or eligibility for such 
        benefits) in addition to benefits (or eligibility for benefits) 
        provided under the terms of the plan as of immediately before 
        receipt of such Notice.
            (4) Definitions.--For purposes of this subsection--
                    (A) State or local governmental group health 
                plan.--The term ``State or local governmental group 
                health plan'' means a group health plan which is 
                established or maintained for its employees by the 
                government of any State, any political subdivision of a 
                State, or any agency or instrumentality of either of 
                the foregoing.
                    (B) Alternate recipient.--The term ``alternate 
                recipient'' means any child of a participant who is 
                recognized under a National Medical Support Notice as 
                having a right to enrollment under a State or local 
                governmental group health plan with respect to such 
                participant.
                    (C) Group health plan.--The term ``group health 
                plan'' has the meaning provided in section 607(1) of 
                the Employee Retirement Income Security Act of 1974.
                    (D) State.--The term ``State'' includes the 
                District of Columbia, the Commonwealth of Puerto Rico, 
                the Virgin Islands, Guam, and American Samoa.
                    (E) Other terms.--The terms ``participant'' and 
                ``administrator'' shall have the meanings provided such 
                terms, respectively, by paragraphs (7) and (16) of 
                section 3 of the Employee Retirement Income Security 
                Act of 1974.
            (5) Effective date.--The provisions of this subsection 
        shall take effect on the date of the issuance of interim 
        regulations pursuant to subsection (b)(4) of this section.
    (f) Qualified Medical Child Support Orders and National Medical 
Support Notices for Church Plans.--
            (1) In general.--Each church group health plan shall 
        provide benefits in accordance with the applicable requirements 
        of any qualified medical child support order. A qualified 
        medical child support order with respect to any participant or 
        beneficiary shall be deemed to apply to each such group health 
        plan which has received such order, from which the participant 
        or beneficiary is eligible to receive benefits, and with 
        respect to which the requirements of paragraph (4) are met.
            (2) Definitions.--For purposes of this subsection--
                    (A) Church group health plan.--The term ``church 
                group health plan'' means a group health plan which is 
                a church plan.
                    (B) Qualified medical child support order.--The 
                term ``qualified medical child support order'' means a 
                medical child support order--
                            (i) which creates or recognizes the 
                        existence of an alternate recipient's right to, 
                        or assigns to an alternate recipient the right 
                        to, receive benefits for which a participant or 
                        beneficiary is eligible under a church group 
                        health plan; and
                            (ii) with respect to which the requirements 
                        of paragraphs (3) and (4) are met.
                    (C) Medical child support order.--The term 
                ``medical child support order'' means any judgment, 
                decree, or order (including approval of a settlement 
                agreement) which--
                            (i) provides for child support with respect 
                        to a child of a participant under a church 
                        group health plan or provides for health 
                        benefit coverage to such a child, is made 
                        pursuant to a State domestic relations law 
                        (including a community property law), and 
                        relates to benefits under such plan; or
                            (ii) is made pursuant to a law relating to 
                        medical child support described in section 1908 
                        of the Social Security Act (as added by section 
                        13822 of the Omnibus Budget Reconciliation Act 
                        of 1993) with respect to a church group health 
                        plan,
                if such judgment, decree, or order (I) is issued by a 
                court of competent jurisdiction or (II) is issued 
                through an administrative process established under 
                State law and has the force and effect of law under 
                applicable State law. For purposes of this paragraph, 
                an administrative notice which is issued pursuant to an 
                administrative process referred to in subclause (II) of 
                the preceding sentence and which has the effect of an 
                order described in clause (i) or (ii) of the preceding 
                sentence shall be treated as such an order.
                    (D) Alternate recipient.--The term ``alternate 
                recipient'' means any child of a participant who is 
                recognized under a medical child support order as 
                having a right to enrollment under a church group 
                health plan with respect to such participant.
                    (E) Group health plan.--The term ``group health 
                plan'' has the meaning provided in section 607(1) of 
                the Employee Retirement Income Security Act of 1974.
                    (F) State.--The term ``State'' includes the 
                District of Columbia, the Commonwealth of Puerto Rico, 
                the Virgin Islands, Guam, and American Samoa.
                    (G) Other terms.--The terms ``participant'', 
                ``beneficiary'', ``administrator'', and ``church plan'' 
                shall have the meanings provided such terms, 
                respectively, by paragraphs (7), (8), (16), and (33) of 
                section 3 of the Employee Retirement Income Security 
                Act of 1974.
            (3) Information to be included in qualified order.--A 
        medical child support order meets the requirements of this 
        paragraph only if such order clearly specifies--
                    (A) the name and the last known mailing address (if 
                any) of the participant and the name and mailing 
                address of each alternate recipient covered by the 
                order, except that, to the extent provided in the 
                order, the name and mailing address of an official of a 
                State or a political subdivision thereof may be 
                substituted for the mailing address of any such 
                alternate recipient;
                    (B) a reasonable description of the type of 
                coverage to be provided to each such alternate 
                recipient, or the manner in which such type of coverage 
                is to be determined; and
                    (C) the period to which such order applies.
            (4) Restriction on new types or forms of benefits.--A 
        medical child support order meets the requirements of this 
        paragraph only if such order does not require a church group 
        health plan to provide any type or form of benefit, or any 
        option, not otherwise provided under the plan, except to the 
        extent necessary to meet the requirements of a law relating to 
        medical child support described in section 1908 of the Social 
        Security Act (as added by section 13822 of the Omnibus Budget 
        Reconciliation Act of 1993).
            (5) Procedural requirements.--
                    (A) Timely notifications and determinations.--In 
                the case of any medical child support order received by 
                a church group health plan--
                            (i) the plan administrator shall promptly 
                        notify the participant and each alternate 
                        recipient of the receipt of such order and the 
                        plan's procedures for determining whether 
                        medical child support orders are qualified 
                        medical child support orders; and
                            (ii) within a reasonable period after 
                        receipt of such order, the plan administrator 
                        shall determine whether such order is a 
                        qualified medical child support order and 
                        notify the participant and each alternate 
                        recipient of such determination.
                    (B) Establishment of procedures for determining 
                qualified status of orders.--Each church group health 
                plan shall establish reasonable procedures to determine 
                whether medical child support orders are qualified 
                medical child support orders and to administer the 
                provision of benefits under such qualified orders. Such 
                procedures--
                            (i) shall be in writing;
                            (ii) shall provide for the notification of 
                        each person specified in a medical child 
                        support order as eligible to receive benefits 
                        under the plan (at the address included in the 
                        medical child support order) of such procedures 
                        promptly upon receipt by the plan of the 
                        medical child support order; and
                            (iii) shall permit an alternate recipient 
                        to designate a representative for receipt of 
                        copies of notices that are sent to the 
                        alternate recipient with respect to a medical 
                        child support order.
                    (C) National medical support notice deemed to be a 
                qualified medical child support order.--
                            (i) In general.--If the plan administrator 
                        of any church group health plan which is 
                        maintained by the employer of a noncustodial 
                        parent of a child or to which such an employer 
                        contributes receives an appropriately completed 
                        National Medical Support Notice promulgated 
                        pursuant to subsection (b) of this section in 
                        the case of such child, and the Notice meets 
                        the requirements of paragraphs (3) and (4) of 
                        this subsection, the Notice shall be deemed to 
                        be a qualified medical child support order in 
                        the case of such child.
                            (ii) Enrollment of child in plan.--In any 
                        case in which an appropriately completed 
                        National Medical Support Notice is issued in 
                        the case of a child of a participant under a 
                        church group health plan who is a noncustodial 
                        parent of the child, and the Notice is deemed 
                        under clause (i) to be a qualified medical 
                        child support order, the plan administrator, 
                        within 40 business days after the date of the 
                        Notice, shall--
                                    (I) notify the State agency issuing 
                                the Notice with respect to such child 
                                whether coverage of the child is 
                                available under the terms of the plan 
                                and, if so, whether such child is 
                                covered under the plan and either the 
                                effective date of the coverage or any 
                                steps necessary to be taken by the 
                                custodial parent (or by the official of 
                                a State or political subdivision 
                                thereof substituted for the name of 
                                such child pursuant to paragraph 
                                (3)(A)) to effectuate the coverage; and
                                    (II) provide to the custodial 
                                parent (or such substituted official) a 
                                description of the coverage available 
                                and any forms or documents necessary to 
                                effectuate such coverage.
                            (iii) Rule of construction.--Nothing in 
                        this subparagraph shall be construed as 
                        requiring a church group health plan, upon 
                        receipt of a National Medical Support Notice, 
                        to provide benefits under the plan (or 
                        eligibility for such benefits) in addition to 
                        benefits (or eligibility for benefits) provided 
                        under the terms of the plan as of immediately 
                        before receipt of such Notice.
            (6) Direct provision of benefits provided to alternate 
        recipients.--Any payment for benefits made by a church group 
        health plan pursuant to a medical child support order in 
        reimbursement for expenses paid by an alternate recipient or an 
        alternate recipient's custodial parent or legal guardian shall 
        be made to the alternate recipient or the alternate recipient's 
        custodial parent or legal guardian.
            (7) Payment to state official treated as satisfaction of 
        plan's obligation to make payment to alternate recipient.--
        Payment of benefits by a church group health plan to an 
        official of a State or a political subdivision thereof whose 
        name and address have been substituted for the address of an 
        alternate recipient in a medical child support order, pursuant 
        to paragraph (3)(A), shall be treated, for purposes of this 
        subsection and part D of title IV of the Social Security Act, 
        as payment of benefits to the alternate recipient.
            (8) Effective date.--The provisions of this subsection 
        shall take effect on the date of the issuance of interim 
        regulations pursuant to subsection (b)(4) of this section.
    (g) Report and Recommendations Regarding the Enforcement of 
Qualified Medical Child Support Orders.--Not later than 8 months after 
the issuance of the report to the Congress pursuant to subsection 
(a)(5), the Secretary of Health and Human Services and the Secretary of 
Labor shall jointly submit to each House of the Congress a report 
containing recommendations for appropriate legislation to improve the 
effectiveness of, and enforcement of, qualified medical child support 
orders under the provisions of subsection (f) of this section and 
section 609(a) of the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1169(a)).
    (h) Technical Corrections.--
            (1) Amendment relating to public law 104-266.--
                    (A) In general.--Subsection (f) of section 101 of 
                the Employee Retirement Income Security Act of 1974 (29 
                U.S.C. 1021(f)) is repealed.
                    (B) Effective date.--The amendment made by 
                subparagraph (A) shall take effect as if included in 
                the enactment of the Act entitled ``An Act to repeal 
                the Medicare and Medicaid Coverage Data Bank'', 
                approved October 2, 1996 (Public Law 104-226; 110 Stat. 
                3033).
            (2) Amendments relating to public law 103-66.--
                    (A) In general.--(i) Section 4301(c)(4)(A) of the 
                Omnibus Budget Reconciliation Act of 1993 (Public Law 
                103-66; 107 Stat. 377) is amended by striking 
                ``subsection (b)(7)(D)'' and inserting ``subsection 
                (b)(7)''.
                    (ii) Section 514(b)(7) of the Employee Retirement 
                Income Security Act of 1974 (29 U.S.C. 1144(b)(7)) is 
                amended by striking ``enforced by'' and inserting 
                ``they apply to''.
                    (iii) Section 609(a)(2)(B)(ii) of such Act (29 
                U.S.C. 1169(a)(2)(B)(ii)) is amended by striking 
                ``enforces'' and inserting ``is made pursuant to''.
                    (B) Child defined.--Section 609(a)(2) of the 
                Employee Retirement Income Security Act of 1974 (29 
                U.S.C. 1169(a)(2)) is amended by adding at the end the 
                following:
                    ``(D) Child.--The term `child' includes any child 
                adopted by, or placed for adoption with, a participant 
                of a group health plan.''.
                    (C) Effective date.--The amendments made by 
                subparagraph (A) shall be effective as if included in 
                the enactment of section 4301(c)(4)(A) of the Omnibus 
                Budget Reconciliation Act of 1993.
            (3) Amendment related to public law 105-33.--
                    (A) In general.--Section 609(a)(9) of the Employee 
                Retirement Income Security Act of 1974 (29 U.S.C. 
                1169(a)(9)) is amended by striking ``the name and 
                address'' and inserting ``the address''.
                    (B) Effective date.--The amendment made by 
                subparagraph (A) shall be effective as if included in 
                the enactment of section 5611(b) of the Balanced Budget 
                Act of 1997.

SEC. 402. SAFEGUARD OF NEW EMPLOYEE INFORMATION.

    (a) Penalty for Unauthorized Access, Disclosure, or Use of 
Information.--Section 453(l) of the Social Security Act (42 U.S.C. 
653(l)) is amended--
            (1) by striking ``Information'' and inserting the 
        following:
            ``(1) In general.--Information''; and
            (2) by adding at the end the following:
            ``(2) Penalty for misuse of information in the national 
        directory of new hires.--The Secretary shall require the 
        imposition of an administrative penalty (up to and including 
        dismissal from employment), and a fine of $1,000, for each act 
        of unauthorized access to, disclosure of, or use of, 
        information in the National Directory of New Hires established 
        under subsection (i) by any officer or employee of the United 
        States who knowingly and willfully violates this paragraph.''.
    (b) Limits on Retention of Data in the National Directory of New 
Hires.--Section 453(i)(2) of such Act (42 U.S.C. 653(i)(2)) is amended 
to read as follows:
            ``(2) Data entry and deletion requirements.--
                    ``(A) In general.--Information provided pursuant to 
                section 453A(g)(2) shall be entered into the data base 
                maintained by the National Directory of New Hires 
                within 2 business days after receipt, and shall be 
                deleted from the data base 24 months after the date of 
                entry.
                    ``(B) 12-month limit on access to wage and 
                unemployment compensation information.--The Secretary 
                shall not have access for child support enforcement 
                purposes to information in the National Directory of 
                New Hires that is provided pursuant to section 
                453A(g)(2)(B), if 12 months has elapsed since the date 
                the information is so provided and there has not been a 
                match resulting from the use of such information in any 
                information comparison under this subsection.
                    ``(C) Retention of data for research purposes.--
                Notwithstanding subparagraphs (A) and (B), the 
                Secretary may retain such samples of data entered in 
                the National Directory of New Hires as the Secretary 
                may find necessary to assist in carrying out subsection 
                (j)(5).''.
    (c) Notice of Purposes for Which Wage and Salary Data are to be 
Used.--Within 90 days after the date of the enactment of this Act, the 
Secretary of Health and Human Services shall notify the Committee on 
Ways and Means of the House of Representatives and the Committee on 
Finance of the Senate of the specific purposes for which the new hire 
and the wage and unemployment compensation information in the National 
Directory of New Hires is to be used. At least 30 days before such 
information is to be used for a purpose not specified in the notice 
provided pursuant to the preceding sentence, the Secretary shall notify 
the Committee on Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate of such purpose.
    (d) Report by the Secretary.--Within 3 years after the date of the 
enactment of this Act, the Secretary of Health and Human Services shall 
submit to the Committee on Ways and Means of the House of 
Representatives and the Committee on Finance of the Senate a report on 
the accuracy of the data maintained by the National Directory of New 
Hires pursuant to section 453(i) of the Social Security Act, and the 
effectiveness of the procedures designed to provide for the security of 
such data.
    (e) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2000.

SEC. 403. LIMITATIONS ON USE OF TANF FUNDS FOR MATCHING UNDER CERTAIN 
              FEDERAL TRANSPORTATION PROGRAM.

    (a) In General.--Section 404 of the Social Security Act (42 U.S.C. 
604) is amended by adding at the end the following:
    ``(k) Limitations on Use of Grant for Matching Under Certain 
Federal Transportation Program.--
            ``(1) Use limitations.--A State to which a grant is made 
        under section 403 may not use any part of the grant to match 
        funds made available under section 3037 of the Transportation 
        Equity for the 21st Century Act of 1998, unless--
                    ``(A) the grant is used for new or expanded 
                transportation services (and not for construction) that 
                benefit individuals described in subparagraph (C), and 
                not to subsidize current operating costs;
                    ``(B) the grant is used to supplement and not 
                supplant other State expenditures on transportation;
                    ``(C) the preponderance of the benefits derived 
                from such use of the grant accrues to individuals who 
                are--
                            ``(i) recipients of assistance under the 
                        State program funded under this part;
                            ``(ii) former recipients of such 
                        assistance;
                            ``(iii) noncustodial parents who are 
                        described in item (aa) or (bb) of section 
                        403(a)(5)(C)(ii)(II); and
                            ``(iv) low income individuals who are at 
                        risk of qualifying for such assistance; and
                    ``(D) the services provided through such use of the 
                grant promote the ability of such recipients to engage 
                in work activities (as defined in section 407(d)).
            ``(2) Amount limitation.--From a grant made to a State 
        under section 403(a), the amount that a State uses to match 
        funds described in paragraph (1) of this subsection shall not 
        exceed the amount (if any) by which 30 percent of the total 
        amount of the grant exceeds the amount (if any) of the grant 
        that is used by the State to carry out any State program 
        described in subsection (d)(1) of this section.
            ``(3) Rule of interpretation.--The provision by a State of 
        a transportation benefit under a program conducted under 
        section 3037 of the Transportation Equity for the 21st Century 
        Act of 1998, to an individual who is not otherwise a recipient 
        of assistance under the State program funded under this part, 
        using funds from a grant made under section 403(a) of this Act, 
        shall not be considered to be the provision of assistance to 
        the individual under the State program funded under this 
        part.''.
    (b) Report to the Congress.--Not later than 2 years after the date 
of the enactment of this Act, the Secretary of Transportation, in 
consultation with the Secretary of Health and Human Services, shall 
submit to the Committees on Ways and Means and on Transportation and 
Infrastructure of the House of Representatives and the Committees on 
Finance and on Environment and Public Works of the Senate a report 
that--
            (1) describes the manner in which funds made available 
        under section 3037 of the Transportation Equity for the 21st 
        Century Act of 1998 have been used;
            (2) describes whether such uses of such funds has improved 
        transportation services for low income individuals; and
            (3) contains such other relevant information as may be 
        appropriate.

SEC. 404. CLARIFICATION OF MEANING OF HIGH-VOLUME AUTOMATED 
              ADMINISTRATIVE ENFORCEMENT OF CHILD SUPPORT IN INTERSTATE 
              CASES.

    (a) In General.--Section 466(a)(14)(B) of the Social Security Act 
(42 U.S.C. 666(a)(14)(B)) is amended to read as follows:
                    ``(B) High-volume automated administrative 
                enforcement.--In this part, the term `high-volume 
                automated administrative enforcement', in interstate 
                cases, means, on request of another State, the 
                identification by a State, through automated data 
                matches with financial institutions and other entities 
                where assets may be found, of assets owned by persons 
                who owe child support in other States, and the seizure 
                of such assets by the State, through levy or other 
                appropriate processes.''.
    (b) Retroactivity.--The amendment made by subsection (a) shall take 
effect as if included in the enactment of section 5550 of the Balanced 
Budget Act of 1997 (Public Law 105-33; 111 Stat. 633).

SEC. 405. GENERAL ACCOUNTING OFFICE REPORTS.

    (a) Report On Feasibility of Instant Check System.--Not later than 
December 31, 1998, the Comptroller General of the United States shall 
report to the Committee on Finance of the Senate and the Committee on 
Ways and Means of the House of Representatives on the feasibility and 
cost of creating and maintaining a nationwide instant child support 
order check system under which an employer would be able to determine 
whether a newly hired employee is required to provide support under a 
child support order.
    (b) Report On Implementation and Use of Child Support Databases.--
Not later than December 31, 1998, the Comptroller General of the United 
States shall report to the Committee on Finance of the Senate and the 
Committee on Ways and Means of the House of Representatives on the 
implementation of the Federal Parent Locater Service (including the 
Federal Case Registry of Child Support Orders and the National 
Directory of New Hires) established under section 453 of the Social 
Security Act (42 U.S.C. 653) and the State Directory of New Hires 
established under section 453A of such Act (42 U.S.C. 653a). The report 
shall include a detailed discussion of the purposes for which, and the 
manner in which, the information maintained in such databases has been 
used, and an examination as to whether such databases are subject to 
adequate safeguards to protect the privacy of the individuals with 
respect to whom information is reported and maintained.

SEC. 406. DATA MATCHING BY MULTISTATE FINANCIAL INSTITUTIONS.

    (a) Use of Federal Parent Locator Service.--Section 
466(a)(17)(A)(i) of the Social Security Act (42 U.S.C. 
666(a)(17)(A)(i)) is amended by inserting ``and the Federal Parent 
Locator Service in the case of financial institutions doing business in 
2 or more States,'' before ``a data match system''.
    (b) Facilitation of Agreements.--Section 452 of such Act (42 U.S.C. 
652) is amended by adding at the end the following:
    ``(l) The Secretary, through the Federal Parent Locator Service, 
may aid State agencies providing services under State programs operated 
pursuant to this part and financial institutions doing business in 2 or 
more States in reaching agreements regarding the receipt from such 
institutions, and the transfer to the State agencies, of information 
that may be provided pursuant to section 466(a)(17)(A)(i), except that 
any State that, as of the date of the enactment of this subsection, is 
conducting data matches pursuant to section 466(a)(17)(A)(i) shall have 
until January 1, 2000, to allow the Secretary to obtain such 
information from such institutions that are operating in the State. For 
purposes of section 1113(d) of the Right to Financial Privacy Act of 
1978, a disclosure pursuant to this subsection shall be considered a 
disclosure pursuant to a Federal statute.''.
    (c) Protection Against Liability.--Section 469A(a) of such Act (42 
U.S.C. 669a(a)) is amended by inserting ``, or for disclosing any such 
record to the Federal Parent Locator Service pursuant to section 
466(a)(17)(A)'' before the period.

SEC. 407. ELIMINATION OF UNNECESSARY DATA REPORTING.

    (a) In General.--Section 469 of the Social Security Act (42 U.S.C. 
669) is amended--
            (1) by striking all that precedes subsection (c) and 
        inserting the following:

``SEC. 469. COLLECTION AND REPORTING OF CHILD SUPPORT ENFORCEMENT DATA.

    ``(a) In General.--With respect to each type of service described 
in subsection (b), the Secretary shall collect and maintain up-to-date 
statistics, by State, and on a fiscal year basis, on--
            ``(1) the number of cases in the caseload of the State 
        agency administering the plan approved under this part in which 
        the service is needed; and
            ``(2) the number of such cases in which the service has 
        actually been provided.
    ``(b) Types of Services.--The statistics required by subsection (a) 
shall be separately stated with respect to paternity establishment 
services and child support obligation establishment services.
    ``(c) Types of Service Recipients.--The statistics required by 
subsection (a) shall be separately stated with respect to--
            ``(1) recipients of assistance under a State program funded 
        under part A or of payments or services under a State plan 
        approved under part E; and
            ``(2) individuals who are not such recipients.''; and
            (2) in subsection (c), by striking ``(c)'' and inserting 
        ``(d) Rule of Interpretation.--''.
    (b) Conforming Amendment.--Section 452(a)(10) of such Act (42 
U.S.C. 652(a)(10)) is amended--
            (1) by adding ``and'' at the end of subparagraph (H); and
            (2) by striking subparagraph (I) and redesignating 
        subparagraph (J) as subparagraph (I).
    (c) Effective Date.--The amendments made by this section shall 
apply to information maintained with respect to fiscal year 1995 or any 
succeeding fiscal year.

SEC. 408. CLARIFICATION OF ELIGIBILITY UNDER WELFARE-TO-WORK PROGRAMS.

    Section 403(a)(5)(C)(ii) of the Social Security Act (42 U.S.C. 
603(a)(5)(C)(ii)) is amended--
            (1) in the matter preceding subclause (I) by striking ``of 
        minors whose custodial parent is such a recipient'';
            (2) in subclause (I), by inserting ``or the noncustodial 
        parent'' after ``recipient''; and
            (3) in subclause (II), by striking ``The individual--'' and 
        inserting ``The recipient or the minor children of the 
        noncustodial parent--''.

SEC. 409. STUDY OF FEASIBILITY OF IMPLEMENTING IMMIGRATION PROVISIONS 
              OF H.R. 3130, AS PASSED BY THE HOUSE OF REPRESENTATIVES 
              ON MARCH 5, 1998.

    (a) Study.--The Secretary of Health and Human Services, in 
consultation with the Immigration and Naturalization Service, shall 
conduct a study to determine the feasibility of the provisions of title 
V of H.R. 3130, as passed by the House of Representatives on March 5, 
1998, were such provisions to become law, especially whether it would 
be feasible for the Immigration and Naturalization Service to implement 
effectively the requirements of such provisions.
    (b) Report to the Congress.--Within 6 months after the date of the 
enactment of this Act, the Secretary of health and Human Services shall 
submit to the Committees on Ways and Means and on the Judiciary of the 
House of Representatives and the Committees on Finance and on the 
Judiciary of the Senate a report on the results of the study required 
by subsection (a).

SEC. 410. TECHNICAL CORRECTIONS.

    (a) Section 413(g)(1) of the Social Security Act (42 U.S.C. 
613(g)(1)) is amended by striking ``Economic and Educational 
Opportunities'' and inserting ``Education and the Workforce''.
    (b) Section 422(b)(2) of the Social Security Act (42 U.S.C. 
622(b)(2)) is amended by striking ``under under'' and inserting 
``under''.
    (c) Section 432(a)(8) of the Social Security Act (42 U.S.C. 
632(a)(8)) is amended by adding ``; and'' at the end.
    (d) Section 453(a)(2) of the Social Security Act (42 U.S.C. 
653(a)(2)) is amended--
            (1) by striking ``parentage,'' and inserting ``parentage 
        or'';
            (2) by striking ``or making or enforcing child custody or 
        visitation orders,''; and
            (3) in subparagraph (A), by decreasing the indentation of 
        clause (iv) by 2 ems.
    (e)(1) Section 5557(b) of the Balanced Budget Act of 1997 (42 
U.S.C. 608 note) is amended by adding at the end the following: ``The 
amendment made by section 5536(1)(A) shall not take effect with respect 
to a State until October 1, 2000, or such earlier date as the State may 
select.''.
    (2) The amendment made by paragraph (1) shall take effect as if 
included in the enactment of section 5557 of the Balanced Budget Act of 
1997 (Public Law 105-33; 111 Stat. 637).
    (f) Section 473A(c)(2)(B) of the Social Security Act (42 U.S.C. 
673b(c)(2)(B)) is amended--
            (1) by striking ``November 30, 1997'' and inserting ``April 
        30, 1998''; and
            (2) by striking ``March 1, 1998'' and inserting ``July 1, 
        1998''.
    (g) Section 474(a) of the Social Security Act (42 U.S.C. 674(a)) is 
amended by striking ``(subject to the limitations imposed by subsection 
(b))''.
    (h) Section 232 of the Social Security Act Amendments of 1994 (42 
U.S.C. 1314a) is amended--
            (1) in subsection (b)(3)(D), by striking ``Energy and''; 
        and
            (2) in subsection (d)(4), by striking ``(b)(3)(C)'' and 
        inserting ``(b)(3)''.

            In lieu of the matter proposed to be inserted by the Senate 
        amendment to the title of the bill, insert the following: ``An 
        Act to provide for an alternative penalty procedure for States 
        that fail to meet Federal child support data processing 
        requirements, to reform Federal incentive payments for 
        effective child support performance, to provide for a more 
        flexible penalty procedure for States that violate 
        interjurisdictional adoption requirements, and for other 
        purposes.''.
            Attest:

                                                                          Clerk.