[Congressional Record Volume 141, Number 130 (Saturday, August 5, 1995)]
[Senate]
[Pages S11575-S11602]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                      FAMILY SELF-SUFFICIENCY ACT

  Mr. DOLE. Mr. President, I ask unanimous consent that the Senate now 
turn to the consideration of Calendar 125, H.R. 4, the welfare bill.
  The PRESIDING OFFICER. The clerk will report.
  The assistant legislative clerk read as follows:

       A bill (H.R. 4) to restore the American family, reduce 
     illegitimacy, control welfare spending and reduce welfare 
     dependence.

  The PRESIDING OFFICER. Is there objection to the immediate 
consideration of the bill?
  There being no objection, the Senate proceeded to consider the bill, 
which 

[[Page S11576]]

had been reported from the Committee on Finance, with an amendment to 
the title and an amendment to strike out all after the enacting clause 
and inserting in lieu thereof the following:
     SECTION 1. SHORT TITLE; REFERENCE; TABLE OF CONTENTS.

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

Sec. 1. Short title; reference; table of contents.

   TITLE I--BLOCK GRANTS FOR TEMPORARY ASSISTANCE FOR NEEDY FAMILIES

Sec. 101. Block grants to States.
Sec. 102. Report on data processing.
Sec. 103. Continued application of current standards under medicaid 
              program.
Sec. 104. Waivers.
Sec. 105. Deemed income requirement for Federal and federally funded 
              programs under the Social Security Act.
Sec. 106. Conforming amendments to the Social Security Act.
Sec. 107. Conforming amendments to the Food Stamp Act of 1977 and 
              related provisions.
Sec. 108. Conforming amendments to other laws.
Sec. 109. Secretarial submission of legislative proposal for technical 
              and conforming amendments.
Sec. 110. Effective date; transition rule.

              TITLE II--MODIFICATIONS TO THE JOBS PROGRAM

Sec. 201. Modifications to the JOBS program.
Sec. 202. Effective date.

                TITLE III--SUPPLEMENTAL SECURITY INCOME

                  Subtitle A--Eligibility Restrictions

Sec. 301. Denial of supplemental security income benefits by reason of 
              disability to drug addicts and alcoholics.
Sec. 302. Limited eligibility of noncitizens for SSI benefits.
Sec. 303. Denial of SSI benefits for 10 years to individuals found to 
              have fraudulently misrepresented residence in order to 
              obtain benefits simultaneously in 2 or more States.
Sec. 304. Denial of SSI benefits for fugitive felons and probation and 
              parole violators.
Sec. 305. Effective dates; application to current recipients.

               Subtitle B--Benefits for Disabled Children

Sec. 311. Restrictions on eligibility for benefits.
Sec. 312. Continuing disability reviews.
Sec. 313. Treatment requirements for disabled individuals under the age 
              of 18.

         Subtitle C--Study of Disability Determination Process

Sec. 321. Study of disability determination process.

      Subtitle D--National Commission on the Future of Disability

Sec. 331. Establishment.
Sec. 332. Duties of the Commission.
Sec. 333. Membership.
Sec. 334. Staff and support services.
Sec. 335. Powers of Commission.
Sec. 336. Reports.
Sec. 337. Termination.

                        TITLE IV--CHILD SUPPORT

     Subtitle A--Eligibility for Services; Distribution of Payments

Sec. 401. State obligation to provide child support enforcement 
              services.
Sec. 402. Distribution of child support collections.
Sec. 403. Rights to notification and hearings.
Sec. 404. Privacy safeguards.

                  Subtitle B--Locate and Case Tracking

Sec. 411. State case registry.
Sec. 412. Collection and disbursement of support payments.
Sec. 413. State directory of new hires.
Sec. 414. Amendments concerning income withholding.
Sec. 415. Locator information from interstate networks.
Sec. 416. Expansion of the Federal parent locator service.
Sec. 417. Collection and use of social security numbers for use in 
              child support enforcement.

         Subtitle C--Streamlining and Uniformity of Procedures

Sec. 421. Adoption of uniform State laws.
Sec. 422. Improvements to full faith and credit for child support 
              orders.
Sec. 423. Administrative enforcement in interstate cases.
Sec. 424. Use of forms in interstate enforcement.
Sec. 425. State laws providing expedited procedures.

                  Subtitle D--Paternity Establishment

Sec. 431. State laws concerning paternity establishment.
Sec. 432. Outreach for voluntary paternity establishment.
Sec. 433. Cooperation by applicants for and recipients of temporary 
              family assistance.

             Subtitle E--Program Administration and Funding

Sec. 441. Federal matching payments.
Sec. 442. Performance-based incentives and penalties.
Sec. 443. Federal and State reviews and audits.
Sec. 444. Required reporting procedures.
Sec. 445. Automated data processing requirements.
Sec. 446. Technical assistance.
Sec. 447. Reports and data collection by the Secretary.

      Subtitle F--Establishment and Modification of Support Orders

Sec. 451. National Child Support Guidelines Commission.
Sec. 452. Simplified process for review and adjustment of child support 
              orders.
Sec. 453. Furnishing consumer reports for certain purposes relating to 
              child support.
Sec. 454. Nonliability for depository institutions providing financial 
              records to State child support enforcement agencies in 
              child support cases.

               Subtitle G--Enforcement of Support Orders

Sec. 461. Federal income tax refund offset.
Sec. 462. Internal Revenue Service collection of arrearages.
Sec. 463. Authority to collect support from Federal employees.
Sec. 464. Enforcement of child support obligations of members of the 
              Armed Forces.
Sec. 465. Voiding of fraudulent transfers.
Sec. 466. Work requirement for persons owing child support.
Sec. 467. Definition of support order.
Sec. 468. Reporting arrearages to credit bureaus.
Sec. 469. Liens.
Sec. 470. State law authorizing suspension of licenses.
Sec. 471. Denial of passports for nonpayment of child support.

                      Subtitle H--Medical Support

Sec. 475. Technical correction to ERISA definition of medical child 
              support order.
Sec. 476. Enforcement of orders for health care coverage.

Subtitle I--Enhancing Responsibility and Opportunity for Nonresidential 
                                Parents

Sec. 481. Grants to States for access and visitation programs.

                    Subtitle J--Effect of Enactment

Sec. 491. Effective dates.
   TITLE I--BLOCK GRANTS FOR TEMPORARY ASSISTANCE FOR NEEDY FAMILIES

     SEC. 101. BLOCK GRANTS TO STATES.

       Part A of title IV (42 U.S.C. 601 et seq.) is amended to 
     read as follows:

  ``PART A--BLOCK GRANTS TO STATES FOR TEMPORARY ASSISTANCE FOR NEEDY 
                      FAMILIES WITH MINOR CHILDREN

     ``SEC. 401. PURPOSE.

       ``The purpose of this part is to increase the flexibility 
     of States in operating a program designed to--
       ``(1) provide assistance to needy families with minor 
     children;
       ``(2) provide job preparation and opportunities for such 
     families; and
       ``(3) prevent and reduce the incidence of out-of-wedlock 
     pregnancies.

     ``SEC. 402. ELIGIBLE STATES; STATE PLAN.

       ``(a) In General.--As used in this part, the term `eligible 
     State' means, with respect to a fiscal year, a State that has 
     submitted to the Secretary a plan that includes the 
     following:
       ``(1) Outline of family assistance program.--A written 
     document that outlines how the State intends to do the 
     following:
       ``(A) Conduct a program designed to serve all political 
     subdivisions in the State to--
       ``(i) provide assistance to needy families with not less 
     than 1 minor child; and
       ``(ii) provide a parent or caretaker in such families with 
     work experience, assistance in finding employment, and other 
     work preparation activities and support services that the 
     State considers appropriate to enable such families to leave 
     the program and become self-sufficient.
       ``(B) Require a parent or caretaker receiving assistance 
     under the program for more than 24 months (whether or not 
     consecutive), or at the option of the State, a lesser period, 
     to engage in work activities in accordance with section 404 
     and part F.
       ``(C) Satisfy the minimum participation rates specified in 
     section 404.
       ``(D) Treat--
       ``(i) families with minor children moving into the State 
     from another State; and
       ``(ii) noncitizens of the United States.
       ``(E) Safeguard and restrict the use and disclosure of 
     information about individuals and families receiving 
     assistance under the program.
       ``(F) Take action to prevent and reduce the incidence of 
     out-of-wedlock pregnancies, with special emphasis on teenage 
     pregnancies.
       ``(2) Certification that the state will operate a child 
     support enforcement program.--A certification by the chief 
     executive officer of the State that, during the fiscal year, 
     the State will operate a child support enforcement program 
     under the State plan approved under part D, in a manner that 
     complies with the requirements of such part.
       ``(3) Certification that the state will operate a child 
     protection program.--A certification by the chief executive 
     officer of the State that, during the fiscal year, the State 
     will operate a child protection program in accordance with 
     part B.
       ``(4) Certification that the state will operate a foster 
     care and adoption assistance program.--A certification by the 
     chief executive officer of the State that, during the fiscal 
     year, 

[[Page S11577]]
     the State will operate a foster care and adoption assistance program in 
     accordance with part E.
       ``(5) Certification that the state will operate a jobs 
     program.--A certification by the chief executive officer of 
     the State that, during the fiscal year, the State will 
     operate a JOBS program in accordance with part F.
       ``(6) Certification that the state will participate in the 
     income and eligibility verification system.--A certification 
     by the chief executive officer of the State that, during the 
     fiscal year, the State will participate in the income and 
     eligibility verification system required by section 1137.
       ``(7) Certification of the administration of the program.--
     The chief executive officer of the State shall certify which 
     State agency or agencies are responsible for the 
     administration and supervision of the State program for the 
     fiscal year.
       ``(8) Certification that required reports will be 
     submitted.--A certification by the chief executive officer of 
     the State that the State shall provide the Secretary with any 
     reports required under this part and part F.
       ``(9) Estimate of fiscal year state and local 
     expenditures.--An estimate of the total amount of State and 
     local expenditures under the State program for the fiscal 
     year.
       ``(b) Determinations.--The Secretary shall determine 
     whether a plan submitted pursuant to subsection (a) contains 
     the material required by subsection (a).
       ``(c) Definitions.--For purposes of this part, the 
     following definitions shall apply:
       ``(1) Minor child.--The term `minor child' means an 
     individual--
       ``(A) who--
       ``(i) has not attained 18 years of age; or
       ``(ii) has--

       ``(I) not attained 19 years of age; and
       ``(II) is a full-time student in a secondary school (or in 
     the equivalent level of vocational or technical training); 
     and

       ``(B) who resides with such individual's custodial parent 
     or other caretaker relative.
       ``(2) Work activity.--The term `work activity' means an 
     activity described in section 482.
       ``(3) Fiscal year.--The term `fiscal year' means any 12-
     month period ending on September 30 of a calendar year.
       ``(4) State.--The term `State' includes the several States, 
     the District of Columbia, the Commonwealth of Puerto Rico, 
     the United States Virgin Islands, Guam, and American Samoa.

     ``SEC. 403. PAYMENTS TO STATES.

       ``(a) Entitlement.--
       ``(1) In general.--Subject to the provisions of section 
     406, the Secretary shall pay to each eligible State for each 
     of fiscal years 1996, 1997, 1998, 1999, and 2000 a grant in 
     an amount equal to the State family assistance grant for the 
     fiscal year.
       ``(2) Appropriation.--
       ``(A) States.--There are authorized to be appropriated and 
     there are appropriated $16,779,000,000 for each fiscal year 
     described in paragraph (1) for the purpose of paying State 
     family assistance grants to States under such paragraph.
       ``(B) Indian tribes.--There are authorized to be 
     appropriated and there are appropriated $7,638,474 for each 
     fiscal year described in paragraph (1) for the purpose of 
     paying State family assistance grants to Indian tribes under 
     such paragraph in accordance with section 482(i).
       ``(b) State Family Assistance Grant.--
       ``(1) In general.--For purposes of subsection (a), a State 
     family assistance grant for any State for a fiscal year is an 
     amount equal to the total amount of the Federal payments to 
     the State under section 403 for fiscal year 1994 (as such 
     section was in effect before October 1, 1995).
       ``(2) State appropriation of grant.--Notwithstanding any 
     other provision of law, any funds received by a State under 
     this part shall be expended only in accordance with the laws 
     and procedures applicable to expenditures of the State's own 
     revenues, including appropriation by the State legislature, 
     consistent with the terms and conditions required under this 
     part.
       ``(3) Special rule for indian tribes.--For amount of a 
     State family assistance grant for a fiscal year for an Indian 
     tribe, see section 482(i).
       ``(c) Use of Grant.--
       ``(1) In general.--Subject to this part, a State to which a 
     grant is made under this section may use the grant in any 
     manner that is reasonably calculated to accomplish the 
     purpose of this part.
       ``(2) Authority to treat interstate immigrants under rules 
     of former state.--A State to which a grant is made under this 
     section may apply to a family the rules of the program 
     operated under this part of another State if the family has 
     moved to the State from the other State and has resided in 
     the State for less than 12 months.
       ``(3) Authority to reserve certain amounts for 
     assistance.--A State may reserve amounts paid to the State 
     under this part for any fiscal year for the purpose of 
     providing, without fiscal year limitation, assistance under 
     the State program operated under this part.
       ``(4) Authority to provide child care and transitional 
     services.--A State to which a grant is made under this 
     section may provide, at the State's option, child care and 
     transitional services to--
       ``(A) families at risk of becoming eligible for assistance 
     under the program if child care is not provided; and
       ``(B) families that cease to receive assistance under the 
     program because of employment.
       ``(d) Timing of Payments.--The Secretary shall pay each 
     grant payable to a State under this section in quarterly 
     installments.
       ``(e) Limitation on Federal Authority.--The Secretary may 
     not regulate the conduct of States under this part or enforce 
     any provision of this part, except to the extent expressly 
     provided in this part.
       ``(f) Supplemental Assistance for Needy Families Federal 
     Loan Fund.--
       ``(1) Establishment.--There is hereby established in the 
     Treasury of the United States a revolving loan fund which 
     shall be known as the `Supplemental Assistance for Needy 
     Families Federal Loan Fund'.
       ``(2) Deposits into fund.--
       ``(A) Appropriation.--Out of any money in the Treasury of 
     the United States not otherwise appropriated, $1,700,000,000 
     are hereby appropriated for fiscal year 1996 for payment to 
     the Supplemental Assistance for Needy Families Federal Loan 
     Fund.
       ``(B) Loan repayments.--The Secretary shall deposit into 
     the fund any principal or interest payment received with 
     respect to a loan made under this subsection.
       ``(3) Availability.--Amounts in the fund are authorized to 
     remain available without fiscal year limitation for the 
     purpose of making loans and receiving payments of principal 
     and interest on such loans, in accordance with this 
     subsection.
       ``(4) Use of fund.--
       ``(A) Loans to states.--The Secretary shall make loans from 
     the fund to any loan-eligible State, as defined in 
     subparagraph (D), for a period to maturity of not more than 3 
     years.
       ``(B) Rate of interest.--The Secretary shall charge and 
     collect interest on any loan made under subparagraph (A) at a 
     rate equal to the Federal short term rate, as defined in 
     section 1274(d) of the Internal Revenue Code of 1986.
       ``(C) Maximum loan.--The cumulative amount of any loans 
     made to a State under subparagraph (A) during fiscal years 
     1996 through 2000 shall not exceed 10 percent of the State 
     family assistance grant under subsection (b) for a fiscal 
     year.
       ``(D) Loan-eligible state.--For purposes of subparagraph 
     (A), a loan-eligible State is a State which has not had a 
     penalty described in section 406 imposed against it at any 
     time prior to the loan being made.
       ``(5) Limitation on use of loan.--A State shall use a loan 
     received under this subsection only for--
       ``(A) the purpose of providing assistance under the State 
     program funded under this part; or
       ``(B) welfare anti-fraud activities, systems, or 
     initiatives, including positive client identity verification 
     and computerized data record matching and analysis.

     ``SEC. 404. MANDATORY WORK REQUIREMENTS.

       ``(a) Participation Rate Requirements.--
       ``(1) Requirement applicable to all families receiving 
     assistance.--
       ``(A) In general.--A State to which a grant is made under 
     section 403 for a fiscal year shall achieve the minimum 
     participation rate specified in the following table for the 
     fiscal year with respect to all families receiving assistance 
     under the State program funded under this part:

                                                            The minimum
                                                          participation
      ``If the fiscal year is:                                 rate is:
        1996.......................................................20  
        1997.......................................................30  
        1998.......................................................35  
        1999.......................................................40  
        2000.......................................................45  
        2001 or thereafter........................................50.  
       ``(B) State option for participation requirement 
     exemptions.--For any fiscal year before fiscal year 1999, a 
     State may opt to not require an individual described in 
     section 402(a)(19)(C) (as such section was in effect on 
     September 30, 1995) to engage in work activities and may 
     exclude such individuals from the determination of the 
     minimum participation rate specified for such fiscal year in 
     subparagraph (A).
       ``(C) Child care for individuals with children under 6 
     years of age.--If a State requires an individual described in 
     section 402(a)(19)(C)(iii)(II) (as such section was in effect 
     on September 30, 1995) to engage in work activities, the 
     State shall provide the individual with child care.
       ``(D) Participation rate.--For purposes of this paragraph:
       ``(i) Average monthly rate.--The participation rate of a 
     State for a fiscal year is the average of the participation 
     rates of the State for each month in the fiscal year.
       ``(ii) Monthly participation rates.--The participation rate 
     of a State for a month, expressed as a percentage, is--

       ``(I) the number of families receiving assistance under the 
     State program
      funded under this part which include an individual who is 
     engaged in work activities for the month; divided by

       ``(II) the total number of families receiving assistance 
     under the State program funded under this part during the 
     month.

       ``(iii) Engaged.--A recipient is engaged in work activities 
     for a month in a fiscal year if the recipient is 
     participating, per the State's requirement which must be at 
     least 20 hours each week in the month, in work activities 
     described in clause (i), (ii), (vi), (vii), (viii), (ix), or 
     (x) of section 482(d)(1)(A), (or, in the case of the first 4 
     weeks for which the recipient is required under this section 
     to participate in work activities, an activity described in 
     any such clause or in clause (iii), (iv), or (v) of such 
     section).
       ``(2) Requirement applicable to 2-parent families.--
       ``(A) In general.--A State to which a grant is made under 
     section 403 for a fiscal year shall achieve the minimum 
     participation rate specified in the following table for the 
     fiscal year with respect to 2-parent families receiving 
     assistance under the State program funded under this part:

                                                            The minimum
                                                          participation
      ``If the fiscal year is:                                 rate is:
        1996.......................................................60  

[[Page S11578]]

        1997 or 1998...............................................75  
        1999 or thereafter........................................90.  
       ``(B) Participation rate.--For purposes of this paragraph:
       ``(i) Average monthly rate.--The participation rate of a 
     State for a fiscal year is the average of the participation 
     rates of the State for each month in the fiscal year.
       ``(ii) Monthly participation rates.--The participation rate 
     of a State for a month is--

       ``(I) the number of 2-parent families receiving assistance 
     under the State program funded under this part which include 
     at least 1 adult who is engaged in work activities for the 
     month; divided by
       ``(II) the total number of 2-parent families receiving 
     assistance under the State program funded under this part 
     during the month.

       ``(iii) Engaged.--An adult is engaged in work activities 
     for a month in a fiscal year if the adult is making progress 
     in such activities, per the State's requirement which must be 
     at least 30 hours each week in a month, in work activities 
     described in clause (vi), (vii), (viii), (ix), or (x) of 
     section 482(d)(1)(A) (or, in the case of the first 4 weeks 
     for which the recipient is required under this section to 
     participate in work activities, an activity described in any 
     such clause or in clause (iii), (iv), or (v) of such 
     section).
       ``(b) Penalties Against Individuals.--
       ``(1) Applicable to all families.--If an adult in a family 
     receiving assistance under the State program funded under 
     this part refuses to engage (within the meaning of subsection 
     (a)(1)(C)(iii)) in work activities required under this 
     section, a State to which a grant is made under section 403 
     shall--
       ``(A) reduce the amount of assistance that would otherwise 
     be payable to the family; or
       ``(B) terminate such assistance,

     subject to such good cause and other exceptions as the State 
     may establish.
       ``(2) Applicable to 2-parent families.--If an adult in a 2-
     parent family refuses to engage (within the meaning of 
     subsection (a)(2)(B)(iii)) in work activities for at least 30 
     hours per week during any month, a State to which a grant is 
     made under section 402 shall--
       ``(A) reduce the amount of assistance otherwise payable to 
     the family; or
       ``(B) terminate such assistance,
     subject to such good cause and other exceptions as the State 
     may establish.
       ``(3) Limitation on federal authority.--No officer or 
     employee of the Federal Government may regulate the conduct 
     of States under this paragraph or enforce this paragraph 
     against any State.

     ``SEC. 405. LIMITATIONS.

       ``(a) No Assistance for More Than 5 Years.--
       ``(1) In general.--Except as provided under paragraph (2), 
     a State to which a grant is made under section 403 may not 
     use any part of the grant to provide assistance to a family 
     of an individual who has received assistance under the 
     program operated under this part for the lesser of--
       ``(A) the period of time established at the option of the 
     State; or
       ``(B) 60 months (whether or not consecutive) after 
     September 30, 1995.
       ``(2) Minor child exception.--If an individual received 
     assistance under the State program operated under this part 
     as a minor child in a needy family, any period during which 
     such individual's family received assistance shall not be 
     counted for purposes of applying the limitation described in 
     paragraph (1) to an application for assistance under such 
     program by such individual as the head of a household of a 
     needy family with minor children.
       ``(3) Hardship exception.--
       ``(A) In general.--The State may exempt a family from the 
     application of paragraph (1) by reason of hardship.
       ``(B) Limitation.--The number of families with respect to 
     which an exemption made by a State under subparagraph (A) is 
     in effect for a fiscal year shall not exceed 15 percent of 
     the average monthly number of families to which the State is 
     providing assistance under the program operated under this 
     part.
       ``(b) Denial of Assistance for 10 Years to a Person Found 
     To Have Fraudulently Misrepresented Residence in Order To 
     Obtain Assistance in 2 or More States.--An individual shall 
     not be considered an eligible individual for the purposes of 
     this part during the 10-year period that begins on the date 
     the individual is convicted in Federal or State court of 
     having made a fraudulent statement or representation with 
     respect to the place of residence of the individual in order 
     to receive assistance simultaneously from 2 or more States 
     under programs that are funded under this title, title XIX, 
     or the Food Stamp Act of 1977, or benefits in 2 or more 
     States under the supplemental security income program under 
     title XVI.
       ``(c) Denial of Assistance for Fugitive Felons and 
     Probation and Parole Violators.--
       ``(1) In general.--An individual shall not be considered an 
     eligible individual for the purposes of this part if such 
     individual is--
       ``(A) fleeing to avoid prosecution, or custody or 
     confinement after conviction, under the laws of the place 
     from which the individual flees, for a crime, or an attempt 
     to commit a crime, which is a felony under the laws
      of the place from which the individual flees, or which, in 
     the case of the State of New Jersey, is a high misdemeanor 
     under the laws of such State; or
       ``(B) violating a condition of probation or parole imposed 
     under Federal or State law.
       ``(2) Exchange of information with law enforcement 
     agencies.--Notwithstanding any other provision of law, a 
     State shall furnish any Federal, State, or local law 
     enforcement officer, upon the request of the officer, with 
     the current address of any recipient of assistance under this 
     part, if the officer furnishes the agency with the name of 
     the recipient and notifies the agency that--
       ``(A) such recipient--
       ``(i) is described in subparagraph (A) or (B) of paragraph 
     (1); or
       ``(ii) has information that is necessary for the officer to 
     conduct the officer's official duties; and
       ``(B) the location or apprehension of the recipient is 
     within such officer's official duties.
       ``(d) State Option To Prohibit Assistance for Certain 
     Aliens.--
       ``(1) In general.--A State to which a grant is made under 
     section 403 may, at its option, prohibit the use of any part 
     of the grant to provide assistance under the State program 
     funded under this part for an individual who is not a citizen 
     or national of the United States.
       ``(2) Deeming of income and resources if assistance is 
     provided.--For deeming of income and resources requirements 
     if assistance is provided to an individual who is not a 
     citizen or national of the United States, see section 1145.

     ``SEC. 406. STATE PENALTIES.

       ``(a) In General.--Subject to the provisions of subsection 
     (b), the Secretary shall deduct from the grant otherwise 
     payable under section 403 the following penalties:
       ``(1) For use of grant in violation of this part.--If an 
     audit conducted pursuant to chapter 75 of title 31, United 
     States Code, finds that an amount paid to a State under 
     section 403 for a fiscal year has been used in violation of 
     this part, then the Secretary shall reduce the amount of the 
     grant otherwise payable to the State under such section for 
     the immediately succeeding fiscal year quarter by the amount 
     so used, plus 5 percent of such grant (determined without 
     regard to this section).
       ``(2) For failure to submit required report.--
       ``(A) In general.--If the Secretary determines that a State 
     has not, within 6 months after the end of a fiscal year, 
     submitted the report required by section 408 for the fiscal 
     year, the Secretary shall reduce by 5 percent the amount of 
     the grant that would (in the absence of this section) be 
     payable to the State under section 403 for the immediately 
     succeeding fiscal year.
       ``(B) Rescission of penalty.--The Secretary shall rescind a 
     penalty imposed on a State under subparagraph (A) with 
     respect to a report for a fiscal year if the State submits 
     the report before the end of the immediately succeeding 
     fiscal year.
       ``(3) For failure to satisfy minimum participation rates.--
       ``(A) In general.--If the Secretary determines that a State 
     has failed to satisfy the minimum participation rates 
     specified in section 404 for a fiscal year, the Secretary 
     shall reduce by not more than 5 percent the amount of the 
     grant that would (in the absence of this section) be payable 
     to the State under section 403 for the immediately succeeding 
     fiscal year.
       ``(B) Penalty based on severity of failure.--The Secretary 
     shall impose reductions under subparagraph (A) on the basis 
     of the degree of noncompliance.
       ``(4) For failure to participate in the income and 
     eligibility verification system.--If the Secretary determines 
     that a State program funded under this part is not 
     participating during a fiscal year in the income and 
     eligibility verification system required by section 1137, the 
     Secretary shall reduce by not more than 5 percent the amount 
     of the grant that would (in the absence of this section) be 
     payable to the State under section 403 for the immediately 
     succeeding fiscal year.
       ``(5) For failure to comply with paternity establishment 
     and child support enforcement requirements under part d.--
       ``(A) In general.--Notwithstanding any other provision of 
     this Act, if a State's program operated under part D of this 
     title is found as a result of a review conducted under 
     section 452(a)(4) of this title not to have complied 
     substantially with the requirements of such part for any 
     quarter beginning after September 30, 1983, and the Secretary 
     determines that the State's program is not complying 
     substantially with such requirements at the time such finding 
     is made, the amounts otherwise payable to the State under 
     section 403 for such quarter and each subsequent quarter, 
     prior to the first quarter throughout which the State program 
     is found to be in substantial compliance with such 
     requirements, shall be reduced (subject to paragraph (2)) 
     by--
       ``(i) not less than 1 nor more than 2 percent;
       ``(ii) not less than 2 nor more than 3 percent, if the 
     finding is the second consecutive such finding made as a 
     result of such a review; or
       ``(iii) not less than 3 nor more than 5 percent, if the 
     finding is the third or a subsequent consecutive such finding 
     made as a result of such a review.
       ``(B) Suspension of reductions.--
       ``(i) In general.--The reductions required under 
     subparagraph (A) shall be suspended for any quarter if--

       ``(I) the State submits a corrective action plan, within a 
     period prescribed by the Secretary following notice of the 
     finding under subparagraph (A), which contains steps 
     necessary to achieve substantial compliance within a time 
     period which the Secretary finds to be appropriate;
       ``(II) the Secretary approves such corrective action plan 
     (and any amendments thereto) as being sufficient to achieve 
     substantial compliance; and
       ``(III) the Secretary finds that the corrective action plan 
     (and any amendments approved under subclause (II)) is being 
     fully implemented by the State and that the State is 
     progressing in accordance with the timetable contained in the 
     plan to achieve substantial compliance with such 
     requirements.

       ``(ii) Continuation of suspension.--A suspension of the 
     penalty under clause (i) shall 

[[Page S11579]]
     continue until such time as the Secretary determines that--

       ``(I) the State has achieved substantial compliance;
       ``(II) the State is no longer implementing its corrective 
     action plan; or
       ``(III) the State is implementing or has implemented its 
     corrective action plan but has failed to achieve substantial 
     compliance within the appropriate time period (as specified 
     in clause (i)(I)).

       ``(iii) Exceptions.--

       ``(I) Achieves compliance.--In the case of a State whose 
     penalty suspension ends pursuant to clause (ii)(I), the 
     penalty shall not be applied.
       ``(II) No longer implementing corrective action plan.--In 
     the case of a State whose penalty suspension ends pursuant to 
     clause (ii)(II), the penalty shall be applied as if the 
     suspension had not occurred.
       ``(III) Failure to achieve compliance within appropriate 
     time period.--In the case of a State whose penalty suspension 
     ends pursuant to clause (ii)(III), the penalty shall be 
     applied to all quarters ending after the expiration of the 
     time period specified in such clause and prior to the first 
     quarter throughout which the State program is found to be in 
     substantial compliance.

       ``(C) Determination of substantial compliance.--For 
     purposes of this paragraph and section 452(a)(4) of this 
     title, a State which is not in full compliance with the 
     requirements of part D shall be determined to be in 
     substantial compliance with such requirements only if the 
     Secretary determines that any noncompliance with such 
     requirements is of a technical nature which does not 
     adversely affect the performance of the child support 
     enforcement program.
       ``(6) For failure to timely repay a supplemental assistance 
     for needy families federal loan.--If the Secretary determines 
     that a State has failed to repay any amount borrowed from the 
     Supplemental Assistance for Needy Families Federal Loan Fund 
     established under section 403(f) within the period of 
     maturity applicable to such loan, plus any interest owed on 
     such loan, then the Secretary shall reduce the amount of the 
     grant otherwise payable to the State under section 403 for 
     the immediately succeeding fiscal year quarter by the 
     outstanding loan amount, plus the interest owed on such 
     outstanding amount.
       ``(b) Requirements.--
       ``(1) Limitation on amount of penalty.--
       ``(A) In general.--In imposing the penalties described in 
     subsection (a), the Secretary shall not reduce any quarterly 
     payment to a State by more than 25 percent.
       ``(B) Carryforward of unrecovered penalties.--To the extent 
     that subparagraph (A) prevents the Secretary from recovering 
     during a fiscal year the full amount of all penalties imposed 
     on a State under subsection (a) for a prior fiscal year, the 
     Secretary shall apply any remaining amount of such penalties 
     to the grant otherwise payable to the State under section 403 
     for the immediately succeeding fiscal year.
       ``(2) State funds to replace reductions in grant.--A State 
     which has a penalty imposed against it under subsection (a) 
     shall expend additional State funds in an amount equal to the 
     amount of the penalty for the purpose of providing assistance 
     under the State program under this part.
       ``(3) Reasonable cause for noncompliance.--The Secretary 
     may not impose a penalty on a State under subsection (a) if 
     the Secretary determines that the State has reasonable cause 
     for failing to comply with a requirement for which a penalty 
     is imposed under such subsection.

     ``SEC. 407. RELIGIOUS CHARACTER AND FREEDOM.

       ``Notwithstanding any other provision of law, any religious 
     organization participating in the State program funded under 
     this part shall retain its independence from Federal, State, 
     and local government, including such an organization's 
     control over the definition, development, practice, and 
     expression of its religious beliefs. However, a religious 
     organization participating in the State program under this 
     part shall not deny needy families and children any 
     assistance provided under this part on the basis of religion, 
     a religious belief, or refusal to participate in a religious 
     practice.

     ``SEC. 408. DATA COLLECTION AND REPORTING.

       ``(a) In General.--Each State to which a grant is made 
     under section 403 for a fiscal year shall, not later than 6 
     months after the end of fiscal year 1997, and each fiscal 
     year thereafter, transmit to the Secretary the following 
     aggregate information on families to which assistance was 
     provided during the fiscal year under the State program 
     operated under this part:
       ``(1) The number of adults receiving such assistance.
       ``(2) The number of children receiving such assistance and 
     the average age of the children.
       ``(3) The employment status of such adults, and the average 
     earnings of employed adults receiving such assistance.
       ``(4) The age, race, and educational attainment at the time 
     of application for assistance of the adults receiving such 
     assistance.
       ``(5) The average amount of cash and other assistance 
     provided to the families under the program.
       ``(6) The number of months, since the most recent 
     application for assistance under the program, for which such 
     assistance has been provided to the families.
       ``(7) The total number of months for which assistance has 
     been provided to the families under the program.
       ``(8) Any other data necessary to indicate whether the 
     State is in compliance with the plan most recently submitted 
     by the State pursuant to section 402.
       ``(9) The components of any program carried out by the 
     State to provide employment and training activities in order 
     to comply with section 404 and part F, and the average 
     monthly number of adults in each such component.
       ``(10) The number of part-time job placements and the 
     number of full-time job placements made through the program 
     referred to in paragraph (11), the number of cases with 
     reduced assistance, and the number of cases closed due to 
     employment.
       ``(11) The number of cases closed due to section 405(a).
       ``(12) The increase or decrease in the number of children 
     born out of wedlock to recipients of assistance under the 
     State program funded under this part.
       ``(b) Authority of States To Use Estimates.--A State may 
     comply with the requirement to provide precise numerical 
     information described in subsection (a) by submitting an 
     estimate which is obtained through the use of scientifically 
     acceptable sampling methods.
       ``(c) Report on Use of Federal Funds To Cover 
     Administrative Costs and Overhead.--The report required by 
     subsection (a) for a fiscal year shall include a statement 
     of--
       ``(1) the total amount and percentage of the Federal funds 
     paid to the State under this part for the fiscal year that 
     are used to cover administrative costs or overhead; and
       ``(2) the total amount of State funds that are used to 
     cover such costs or overhead.
       ``(d) Report on State Expenditures on Programs for Needy 
     Families.--The report required by subsection (a) for a fiscal 
     year shall include a statement of the total amount expended 
     by the State during the fiscal year on the program under this 
     part and the purposes for which such amount was spent.
       ``(e) Report on Noncustodial Parents Participating in Work 
     Activities.--The report required by subsection (a) for a 
     fiscal year shall include the number of noncustodial parents 
     in the State who participated in work activities during the 
     fiscal year.
       ``(f) Report on Child Support Collected.--The report 
     required by subsection (a) for a fiscal year shall include 
     the total amount of child support collected by the State 
     agency administering the State program under part D on behalf 
     of a family receiving assistance under this part.
       ``(g) Report on Child Care.--The report required by 
     subsection (a) for a fiscal year shall include the total 
     amount expended by the State for child care under the program 
     under this part, along with a description of the types of 
     child care provided, including--
       ``(1) child care provided in the case of a family that has 
     ceased to receive assistance under this part because of 
     employment; or
       ``(2) child care provided in the case of a family that is 
     not receiving assistance under this part but would be at risk 
     of becoming eligible for such assistance if child care was 
     not provided.
       ``(h) Report on Transitional Services.--The report required 
     by subsection (a) for a fiscal year shall include the total 
     amount expended by the State for providing transitional 
     services to a family that has ceased to receive assistance 
     under this part because of employment, along with a 
     description of such services.
     ``SEC. 409. RESEARCH, EVALUATIONS, AND NATIONAL STUDIES.

       ``(a) Research.--The Secretary may conduct research on the 
     effects and costs of State programs funded under this part.
       ``(b) Development and Evaluation of Innovative Approaches 
     To Employing Welfare Recipients.--The Secretary may assist 
     States in developing, and shall evaluate, innovative 
     approaches to employing recipients of assistance under 
     programs funded under this part. In performing such 
     evaluations, the Secretary shall, to the maximum extent 
     feasible, use random assignment to experimental and control 
     groups.
       ``(c) Studies of Welfare Caseloads.--The Secretary may 
     conduct studies of the caseloads of States operating programs 
     funded under this part.
       ``(d) Dissemination of Information.--The Secretary shall 
     develop innovative methods of disseminating information on 
     any research, evaluations, and studies conducted under this 
     section, including the facilitation of the sharing of 
     information and best practices among States and localities 
     through the use of computers and other technologies.
       ``(e) Annual Ranking of States and Review of Most and Least 
     Successful Work Programs.--
       ``(1) Annual ranking of states.--The Secretary shall rank 
     annually the States to which grants are paid under section 
     403 in the order of their success in moving recipients of 
     assistance under the State program funded under this part 
     into long-term private sector jobs.
       ``(2) Annual review of most and least successful work 
     programs.--The Secretary shall review the programs of the 3 
     States most recently ranked highest under paragraph (1) and 
     the 3 States most recently ranked lowest under paragraph (1) 
     that provide parents with work experience, assistance in 
     finding employment, and other work preparation activities and 
     support services to enable the families of such parents to 
     leave the program and become self-sufficient.
       ``(f) Study on Alternative Outcomes Measures.--
       ``(1) Study.--The Secretary shall, in cooperation with the 
     States, study and analyze outcomes measures for evaluating 
     the success of a State in moving individuals out of the 
     welfare system through employment as an alternative to the 
     minimum participation rates described in section 404. The 
     study shall include a determination as to whether such 
     alternative outcomes measures should be applied on a national 
     or a State-by-State basis.
       ``(2) Report.--Not later than September 30, 1998, the 
     Secretary shall submit to the Committee on Finance of the 
     Senate and the Committee 

[[Page S11580]]
     on Ways and Means of the House of Representatives a report containing 
     the findings of the study described in paragraph (1).
     ``SEC. 410. STUDY BY THE CENSUS BUREAU.

       ``(a) In General.--The Bureau of the Census shall expand 
     the Survey of Income and Program Participation as necessary 
     to obtain such information as will enable interested persons 
     to evaluate the impact of the amendments made by titles I and 
     II of the Family Self-Sufficiency Act of 1995 on a random 
     national sample of recipients of assistance under State 
     programs funded under this part and (as appropriate) other 
     low-income families, and in doing so, shall pay particular 
     attention to the issues of out-of-wedlock births, welfare 
     dependency, the beginning and end of welfare spells, and the 
     causes of repeat welfare spells.
       ``(b) Appropriation.--Out of any money in the Treasury of 
     the United States not otherwise appropriated, the Secretary 
     of the Treasury shall pay to the Bureau of the Census 
     $10,000,000 for each of fiscal years 1996, 1997, 1998, 1999, 
     and 2000 to carry out subsection (a).
     ``SEC. 411. ASSISTANT SECRETARY FOR FAMILY SUPPORT.

       ``The programs under this part, part D, and part F of this 
     title shall be administered by an Assistant Secretary for 
     Family Support within the Department of Health and Human 
     Services, who shall be appointed by the President, by and 
     with the advice and consent of the Senate, and who shall be 
     in addition to any other Assistant Secretary of Health and 
     Human Services provided for by law.
     ``SEC. 412. STATE DEMONSTRATION PROGRAMS.

       ``Nothing in this part shall be construed as limiting a 
     State's ability to conduct demonstration projects for the 
     purpose of identifying innovative or effective program 
     designs in 1 or more political subdivisions of the State.

     ``SEC. 413. NO INDIVIDUAL ENTITLEMENT.

       ``Notwithstanding any other provision of law, no individual 
     is entitled to any assistance under this part or any service 
     under part F.''.

     SEC. 102. REPORT ON DATA PROCESSING.

       (a) In General.--Not later than 6 months after the date of 
     the enactment of this Act, the Secretary of Health and Human 
     Services shall prepare and submit to the Congress a report 
     on--
       (1) the status of the automated data processing systems 
     operated by the States to assist management in the 
     administration of State programs under part A of title IV of 
     the Social Security Act (whether in effect before or after 
     October 1, 1995); and
       (2) what would be required to establish a system capable 
     of--
       (A) tracking participants in public programs over time; and
       (B) checking case records of the States to determine 
     whether individuals are participating in public programs in 2 
     or more States.
       (b) Preferred Contents.--The report required by subsection 
     (a) should include--
       (1) a plan for building on the automated data processing 
     systems of the States to establish a system with the 
     capabilities described in subsection (a)(2); and
       (2) an estimate of the amount of time required to establish 
     such a system and of the cost of establishing such a system.

     SEC. 103. CONTINUED APPLICATION OF CURRENT STANDARDS UNDER 
                   MEDICAID PROGRAM.

       (a) In General.--Title XIX (42 U.S.C. 1396 et seq.) is 
     amended--
       (1) in section 1931, by inserting ``subject to section 
     1931(a),'' after ``under this title,'' and by redesignating 
     such section as section 1932; and
       (2) by inserting after section 1930 the following new 
     section:


               ``continued application of afdc standards

       ``Sec. 1931. (a) For purposes of applying this title on and 
     after October 1, 1995, with respect to a State--
       ``(1) except as provided in paragraph (2), any reference in 
     this title (or other provision of law in relation to the 
     operation of this title) to a provision of part A of title IV 
     of this Act, or a State plan under such part, shall be 
     considered a reference to such provision or plan as in effect 
     as of June 1, 1995, with respect to the State and eligibility 
     for medical assistance under this title shall be determined 
     as if such provision or plan (as in effect as of such date) 
     had remained in effect on and after October 1, 1995; and
       ``(2) any reference in section 1902(a)(5) or 1902(a)(55) to 
     a State plan approved under part A of title IV shall be 
     deemed a reference to a State program funded under such part 
     (as in effect on and after October 1, 1995).
       ``(b) In the case of a waiver of a provision of part A of 
     title IV in effect with respect to a State as of June 1, 
     1995, if the waiver affects eligibility of individuals for 
     medical assistance under this title, such waiver may, at the 
     option of the State, continue to be applied in relation to 
     this title after the date the waiver would otherwise 
     expire.''.
       (b) Plan Amendment.--Section 1902(a) (42 U.S.C. 1396a(a)) 
     is amended--
       (1) by striking ``and'' at the end of paragraph (61);
       (2) by striking the period at the end of paragraph (62) and 
     inserting ``; and''; and
       (3) by inserting after paragraph (62) the following new 
     paragraph:
       ``(63) provide for continuing to administer eligibility 
     standards with respect to individuals who are (or seek to be) 
     eligible for medical assistance based on the application of 
     section 1931.''.
       (c) Conforming Amendments.--(1) Section 1902(c) (42 U.S.C. 
     1396a(c)) is amended by striking ``if--'' and all that 
     follows and inserting the following: ``if the State requires 
     individuals described in subsection (l)(1) to apply for 
     assistance under the State program funded under part A of 
     title IV as a condition of applying for or receiving medical 
     assistance under this title.''.
       (2) Section 1903(i) (42 U.S.C. 1396b(i)) is amended by 
     striking paragraph (9).
       (d) Effective Date.--The amendments made by this section 
     shall apply to medical assistance furnished for calendar 
     quarters beginning on or after October 1, 1995.

     SEC. 104. WAIVERS.

       (a) Continuation of Waivers.--
       (1) In general.--Except as provided in paragraph (2), if 
     any waiver granted to a State under section 1115 of the 
     Social Security Act or otherwise which relates to the 
     provision of assistance under a State plan under part A of 
     title IV of such Act (42 U.S.C. 1396 et seq.), is in effect 
     or approved by the Secretary of Health and Human Services (in 
     this section referred to as the ``Secretary'') as of October 
     1, 1995, the amendments made by this Act shall not apply with 
     respect to the State before the expiration (determined 
     without regard to any extensions) of the waiver to the extent 
     such amendments are inconsistent with the terms of the 
     waiver.
       (2) Financing limitation.--Notwithstanding any other 
     provision of law, beginning with fiscal year 1996, a State 
     operating under a waiver described in paragraph (1) shall 
     receive the payment described for such State for such fiscal 
     year under section 403 of the Social Security Act, as added 
     by section 101, in lieu of any other payment provided for in 
     the waiver.
       (b) State Option To Terminate Waiver.--
       (1) In general.--A State may terminate a waiver described 
     in subsection (a) before the expiration of the waiver.
       (2) Report.--A State which terminates a waiver under 
     paragraph (1) shall submit a report to the Secretary 
     summarizing the waiver and any available information 
     concerning the result or effect of such waiver.
       (3) Hold harmless provision.--
       (A) In general.--A State that, not later than the date 
     described in subparagraph (B), submits a written request to 
     terminate a waiver described in subsection (a) shall be held 
     harmless for accrued cost neutrality liabilities incurred 
     under the terms and conditions of such waiver.
       (B) Date described.--The date described in this 
     subparagraph is the later of--
       (i) January 1, 1996; or
       (ii) 90 days following the adjournment of the first regular 
     session of the State legislature that begins after the date 
     of the enactment of this Act.
       (c) Secretarial Encouragement of Current Waivers.--The 
     Secretary shall encourage any State operating a waiver 
     described in subsection (a) to continue such waiver and to 
     evaluate, using random sampling and other characteristics of 
     accepted scientific evaluations, the result or effect of such 
     waiver.

     SEC. 105. DEEMED INCOME REQUIREMENT FOR FEDERAL AND FEDERALLY 
                   FUNDED PROGRAMS UNDER THE SOCIAL SECURITY ACT.

       (a) In General.--Part A of title XI (42 U.S.C. 1301-1320b-
     14) is amended by adding at the end the following new 
     section:
 ``deemed income requirement for federal and federally funded programs

       ``Sec. 1145. (a) Deeming Requirement for Federal and 
     Federally Funded Programs.--For purposes of determining the 
     eligibility of an individual (whether a citizen or national 
     of the United States or an alien) for assistance, and the 
     amount of assistance, under any Federal program of assistance 
     authorized under this Act, or any program of assistance 
     authorized under this Act funded in whole or in part by the 
     Federal Government for which eligibility is based on need, 
     the income and resources described in subsection (b) shall, 
     notwithstanding any other provision of law, be deemed to be 
     the income and resources of such individual.
       ``(b) Deemed Income and Resources.--The income and 
     resources described in this subsection include the following:
       ``(1) The income and resources of any person who, as a 
     sponsor of such individual's entry into the United States (or 
     in order to enable such individual lawfully to remain in the 
     United States), executed an affidavit of support or similar 
     agreement with respect to such individual.
       ``(2) The income and resources of such sponsor's spouse.
       ``(c) Length of Deemed Income Period.--The requirement of 
     subsection (a) shall apply for the period for which the 
     sponsor has agreed, in such affidavit or agreement, to 
     provide support for such individual, or for a period of 5 
     years beginning on the date such individual was first 
     lawfully in the United States after the execution of such 
     affidavit or agreement, whichever period is longer.
       ``(d) Deemed Income Authority to State and Local 
     Agencies.--
       ``(1) In general.--For purposes of determining the 
     eligibility of an individual (whether a citizen or national 
     of the United States or an alien) for assistance, and the 
     amount of assistance, under any State or local program of 
     assistance authorized under this Act for which eligibility is 
     based on need, or any need-based program of assistance 
     authorized under this Act and administered by a State or 
     local government other than a program described in subsection 
     (a), the State or local government may, notwithstanding any 
     other provision of law, require that the income and resources 
     described in subsection (b) be deemed to be the income and 
     resources of such individual.
       ``(2) Length of deeming period.--A State or local 
     government may impose a requirement described in paragraph 
     (1) for the period described in subsection (c).''.
       (b) Conforming Amendments.--
       (1) Section 1621 (42 U.S.C. 1382j) is repealed.
       (2) Section 1614(f)(3) (42 U.S.C. 1382c(f)(3)) is amended 
     by striking ``section 1621'' and inserting ``section 1145''.
     
[[Page S11581]]


     SEC. 106. CONFORMING AMENDMENTS TO THE SOCIAL SECURITY ACT.

       (a) Amendments to Title II.--
       (1) Section 205(c)(2)(C)(vi) (42 U.S.C. 405(c)(2)(C)(vi)), 
     as so redesignated by section 321(a)(9)(B) of the Social 
     Security Independence and Program Improvements Act of 1994, 
     is amended--
       (A) by inserting ``an agency administering a program funded 
     under part A of title IV or'' before ``an agency operating''; 
     and
       (B) by striking ``A or D of title IV of this Act'' and 
     inserting ``D of such title''.
       (2) Section 228(d)(1) (42 U.S.C. 428(d)(1)) is amended by 
     inserting ``under a State program funded under'' before 
     ``part A of title IV''.
       (b) Amendment to Part B of Title IV.--Section 422(b)(2) (42 
     U.S.C. 622(b)(2)) is amended by
      striking ``under the State plan approved'' and inserting 
     ``under the State program funded.''.
       (c) Amendments to Part D of Title IV.--
       (1) Section 451 (42 U.S.C. 651) is amended by striking 
     ``aid'' and inserting ``assistance under a State program 
     funded''.
       (2) Section 452(a)(10)(C) (42 U.S.C. 652(a)(10)(C)) is 
     amended--
       (A) by striking ``aid to families with dependent children'' 
     and inserting ``assistance under a State program funded under 
     part A''; and
       (B) by striking ``such aid'' and inserting ``such 
     assistance''; and
       (C) by striking ``402(a)(26) or''.
       (3) Section 452(a)(10)(F) (42 U.S.C. 652(a)(10)(F)) is 
     amended--
       (A) by striking ``aid under a State plan approved'' and 
     inserting ``assistance under a State program funded''; and
       (B) by striking ``in accordance with the standards referred 
     to in section 402(a)(26)(B)(ii)'' and inserting ``by the 
     State''.
       (4) Section 452(b) (42 U.S.C. 652(b)) is amended in the 
     first sentence by striking ``aid under the State plan 
     approved under part A'' and inserting ``assistance under a 
     State program funded under part A''.
       (5) Section 452(d)(3)(B)(i) (42 U.S.C. 652(d)(3)(B)(i)) is 
     amended by striking ``1115(c)'' and inserting ``1115(b)''.
       (6) Section 452(g)(2)(A)(ii)(I) (42 U.S.C. 
     652(g)(2)(A)(ii)(I)) is amended by striking ``aid is being 
     paid under the State's plan approved under part A or E'' and 
     inserting ``assistance is being provided under the State 
     program funded under part A or aid is being paid under the 
     State's plan approved under part E''.
       (7) Section 452(g)(2)(A) (42 U.S.C. 652(g)(2)(A)) is 
     amended in the matter following clause (iii) by striking 
     ``aid was being paid under the State's plan approved under 
     part A or E'' and inserting ``assistance was being provided 
     under the State program funded under part A or aid was being 
     paid under the State's plan approved under part E''.
       (8) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is amended in 
     the matter following subparagraph (B)--
       (A) by striking ``who is a dependent child by reason of the 
     death of a parent'' and inserting ``with respect to whom 
     assistance is being provided under the State program funded 
     under part A'';
       (B) by inserting ``by the State agency administering the 
     State plan approved under this part'' after ``found''; and
       (C) by striking ``under section 402(a)(26)'' and inserting 
     ``with the State in establishing paternity''.
       (9) Section 452(h) (42 U.S.C. 652(h)) is amended by 
     striking ``under section 402(a)(26)''.
       (10) Section 453(c)(3) (42 U.S.C. 653(c)(3)) is amended by 
     striking ``aid'' and inserting ``assistance under a State 
     program funded''.
       (11) Section 454 (42 U.S.C. 654)) is amended--
       (A) in paragraph (5)(A)--
       (i) by striking ``under section 402(a)(26)''; and
       (ii) by striking ``except that this paragraph shall not 
     apply to such payments for any month following the first 
     month in which the amount collected is sufficient to make 
     such family ineligible for assistance under the State plan 
     approved under part A;''; and
       (B) in paragraph (6)(D), by striking ``aid under a State 
     plan approved'' and inserting ``assistance under a State 
     program funded''.
       (12) Section 456 (42 U.S.C. 656) is amended by striking 
     ``under section 402(a)(26)'' each place it appears.
       (13) Section 466(a)(3)(B) (42 U.S.C. 666(a)(3)(B)) is 
     amended by striking ``402(a)(26) or''.
       (14) Section 466(b)(2) (42 U.S.C. 666(b)(2)) is amended by 
     striking ``aid'' and inserting ``assistance under a State 
     program funded''.
       (15) Section 469(a) (42 U.S.C. 669(a)) is amended--
       (A) by striking ``aid under plans approved'' and inserting 
     ``assistance under State programs funded''; and
       (B) by striking ``such aid'' and inserting ``such 
     assistance''.
       (d) Amendments to Part E of Title IV.--
       (1) Section 470 (42 U.S.C. 670) is amended by striking 
     ``the State's plan approved'' and inserting ``a State program 
     funded''.
       (2) Section 471(17) (42 U.S.C. 671(17)) is amended by 
     striking ``plans approved under parts A and D'' and inserting 
     ``program funded under part A and plan approved under part 
     D''.
       (3) Section 472(a) (42 U.S.C. 672(a)) is amended--
       (A) in the matter preceding paragraph (1), by striking 
     ``would meet the requirements of section 406(a) or of section 
     407 but for his removal from the home of a relative 
     (specified in section 406(a))'' and inserting ``would be a 
     minor child in a needy family under the State program funded 
     under part A but for the child's removal from the home of the 
     child's custodial parent or caretaker relative.'; and
       (B) in paragraph (4)--
       (i) in subparagraph (A), by striking ``aid under a State 
     plan approved under section 402'' and inserting ``assistance 
     under a State program funded under part A''; and
       (ii) in subparagraph (B)--

       (I) in clause (i), by striking ``aid'' and inserting 
     ``assistance''; and
       (II) in clause (ii), by striking ``relative specified in 
     section 406(a)'' and inserting ``the child's custodial parent 
     or caretaker relative''.

       (4) Section 472(h) (42 U.S.C. 672(h)) is amended to read as 
     follows:
       ``(h)(1) For purposes of title XIX, any child with respect 
     to whom foster care maintenance payments are made under this 
     section shall be deemed to be a dependent child as defined in 
     section 406 (as in effect as of June 1, 1995) and shall be 
     deemed to be a recipient of aid to families with dependent 
     children under part A of this title (as so in effect). For 
     purposes of title XX, any child with respect to whom foster 
     care maintenance payments are made under this section shall 
     be deemed to be a minor child in a needy family under a State 
     program funded under part A and shall be deemed to be a 
     recipient of assistance under such part.
       ``(2) For purposes of paragraph (1), a child whose costs in 
     a foster family home or child care institution are covered by 
     the foster care maintenance payments being made with respect 
     to the child's minor parent, as provided in section 
     475(4)(B), shall be considered a child with respect to whom 
     foster care maintenance payments are made under this 
     section.''.
       (5) Section 473(a)(2) (42 U.S.C. 673(a)(2)) is amended--
       (A) in subparagraph (A)(i)--
       (i) by striking ``met the requirements of section 406(a) or 
     section 407'' and all that follows through ``specified in 
     section 406(a)),'' and inserting ``was a minor child in a 
     needy family under the State program funded under part A or 
     would have met such a standard except for the child's removal 
     from the home of the child's custodial parent or caretaker 
     relative,'' ; and
       (ii) by striking ``(or 403)'';
       (B) in subparagraph (B)(i), by striking ``aid under the 
     State plan approved under section 402'' and inserting 
     ``assistance under the State program funded under part A'';
       (C) in subparagraph (B)(ii)--
       (i) in subclause (I), by striking ``aid'' and inserting 
     ``assistance''; and
       (ii) in subclause (II)--

       (I) by striking ``a relative specified in section 406(a)'' 
     and inserting ``the child's custodial parent or caretaker 
     relative''; and
       (II) by striking ``aid'' each place such term appears and 
     inserting ``assistance''.

       (6) Section 473(b) (42 U.S.C. 673(b)) is amended to read as 
     follows:
       ``(b)(1) For purposes of title XIX, any child who is 
     described in paragraph (3) shall be deemed to be a dependent 
     child as defined in section 406 (as in effect as of June 1, 
     1995) and shall be deemed to be a recipient of aid to 
     families with dependent children under part A of this title 
     (as so in effect) in the State where such child resides.
       ``(2) For purposes of title XX, any child who is described 
     in paragraph (3) shall be deemed to be a minor child in a 
     needy family under a State program funded under part A and 
     shall be deemed to be a recipient of assistance under such 
     part.
       ``(3) A child described in this paragraph is any child--
       ``(A)(i) who is a child described in subsection (a)(2), and
       ``(ii) with respect to whom an adoption assistance 
     agreement is in effect under this section (whether or nor 
     adoption assistance payments are provided under the agreement 
     or are being made under this section), including any such 
     child who has been placed for adoption in accordance with 
     applicable State and local law (whether or not an 
     interlocutory or other judicial decree of adoption has been 
     issued), or
       ``(B) with respect to whom foster care maintenance payments 
     are being made under section 472.
       ``(4) For purposes of paragraphs (1) and (2), a child whose 
     costs in a foster family home or child-care institution are 
     covered by the foster care maintenance payments being made 
     with respect to the child's minor parent, as provided in 
     section 475(4)(B), shall be considered a child with respect 
     to whom foster care maintenance payments are being made under 
     section 472.''.
       (e) Amendment to Title X.--Section 1002(a)(7) (42 U.S.C. 
     1202(a)(7)) is amended by striking ``aid to families with 
     dependent children under the State plan approved under 
     section 402 of this Act'' and inserting ``assistance under a 
     State program funded under part A of title IV''.
       (f) Amendments to Title XI.--
       (1) Section 1109 (42 U.S.C. 1309) is amended by striking 
     ``or part A of title IV,''.
       (2) Section 1115 (42 U.S.C. 1315) is amended--
       (A) in subsection (a)(2)--
       (i) by inserting ``(A)'' after ``(2)'';
       (ii) by striking ``403,'';
       (iii) by striking the period at the end and inserting ``, 
     and''; and
       (iv) by adding at the end the following new subparagraph:
       ``(B) costs of such project which would not otherwise be a 
     permissible use of funds under part A of title IV and which 
     are not included as part of the costs of projects under 
     section 1110, shall to the extent and for the period 
     prescribed by the Secretary, be regarded as a permissible use 
     of funds under such part.''; and
       (B) in subsection (c)(3), by striking ``under the program 
     of aid to families with dependent children'' and inserting 
     ``part A of such title''.
       (3) Section 1116 (42 U.S.C. 1316) is amended--
       (A) in each of subsections (a)(1), (b), and (d), by 
     striking ``or part A of title IV,''; and
       (B) in subsection (a)(3), by striking ``404,''.
       (4) Section 1118 (42 U.S.C. 1318) is amended--
       (A) by striking ``403(a),'';
       (B) by striking ``and part A of title IV,''; and

[[Page S11582]]

       (C) by striking ``, and shall, in the case of American 
     Samoa, mean 75 per centum with respect to part A of title 
     IV''.
       (5) Section 1119 (42 U.S.C. 1319) is amended--
       (A) by striking ``or part A of title IV''; and
       (B) by striking ``403(a),''.
       (6) Section 1133(a) (42 U.S.C. 1320b-3(a)) is amended by 
     striking ``or part A of title IV,''.
       (7) Section 1136 (42 U.S.C. 1320b-6) is repealed.
       (8) Section 1137 (42 U.S.C. 1320b-7) is amended--
       (A) in subsection (b), by striking paragraph (1) and 
     inserting the following:
       ``(1) any State program funded under part A of title IV of 
     this Act;''; and
       (B) in subsection (d)(1)(B)--
       (i) by striking ``In this subsection--'' and all that 
     follows through ``(ii) in'' and inserting ``In this 
     subsection, in'';
       (ii) by redesignating subclauses (I), (II), and (III) as 
     clauses (i), (ii), and (iii); and
       (iii) by moving such redesignated material 2 ems to the 
     left.
       (g) Amendment to Title XIV.--Section 1402(a)(7) (42 U.S.C. 
     1352(a)(7)) is amended by striking ``aid to families with 
     dependent children under the State plan approved under 
     section 402 of this Act'' and inserting ``assistance under a 
     State program funded under part A of title IV''.
       (h) Amendment to Title XVI as in Effect With Respect to the 
     Territories.--Section 1602(a)(11), as in effect without 
     regard to the amendment made by section 301 of the Social 
     Security Amendments of 1972 (42 U.S.C. 1382 note), is amended 
     by striking ``aid under the State plan approved'' and 
     inserting ``assistance under a State program funded''.
       (i) Amendment to Title XVI as in Effect With Respect to the 
     States.--Section 1611(c)(5)(A) (42 U.S.C. 1382(c)(5)(A)) is 
     amended to read as follows: ``(A) a State program funded 
     under part A of title IV,''.
     SEC. 107. CONFORMING AMENDMENTS TO THE FOOD STAMP ACT OF 1977 
                   AND RELATED PROVISIONS.

       (a) Section 5 of the Food Stamp Act of 1977 (7 U.S.C. 2014) 
     is amended--
       (1) in the second sentence of subsection (a), by striking 
     ``a State plan approved'' and inserting ``a State program 
     funded'';
       (2) in subsection (d)(5)--
       (A) by striking ``assistance to families with dependent 
     children'' and inserting ``assistance under a State program 
     funded''; and
       (B) by striking paragraph (13) and redesignating paragraphs 
     (14), (15), and (16) as paragraphs (13), (14), and (15), 
     respectively;
       (3) in subsection (j), by striking ``a State plan 
     approved'' and inserting ``a State program funded''; and
       (4) in subsection (k)(1)(A), by striking ``a regular 
     benefit payable to the household for living expenses under a 
     State plan for aid to families with dependent children 
     approved'' and inserting ``assistance payable to the 
     household under a State program funded''.
       (b) Section 6 of such Act (7 U.S.C. 2015) is amended--
       (1) in subsection (c)(5), by striking ``the State plan 
     approved'' and inserting ``the State program funded'';
       (2) in subsection (d)(4)--
       (A) in subparagraph (B)(i), by striking ``in subparagraphs 
     (A) and (B) of section 402(a)(35) of part A of title IV of 
     the Social Security Act'' and inserting ``under the State 
     program funded under part A of title IV of the Social 
     Security Act'';
       (B) in subparagraph (I)(i)(II), by striking ``benefits 
     under part A'' and inserting ``assistance under a State 
     program funded under part A''; and
       (C) in subparagraph (L)(ii) by striking ``training''; and
       (3) in subsection (e)(6), by striking ``aid to families 
     with dependent children'' and inserting ``assistance under a 
     State program funded''.
       (c) Section 8(e) of such Act (7 U.S.C. 2017(e)) is 
     amended--
       (1) in paragraph (1)(A)(i), by striking ``aid to families 
     with dependent children'' and inserting ``assistance under a 
     State program'';
       (2) in paragraph (2)(A)(ii)(I), by striking ``benefits paid 
     to such household under a State plan for aid to families with 
     dependent children approved'' and inserting ``assistance paid 
     to such household under a State program funded''; and
       (3) in paragraph (3), by striking ``such aid to families 
     with dependent children'' and inserting ``the assistance 
     under a State program funded under part A of title IV of the 
     Social Security Act''.
       (d) Section 11 of such Act (7 U.S.C. 2020) is amended--
       (1) in subsection (e)(2), by striking ``the aid to families 
     with dependent children program'' and inserting ``the State 
     program funded''; and
       (2) in subsection (i)(1), by striking ``the aid to families 
     with dependent children program'' and inserting ``the State 
     program funded''.
       (e) Section 16(g)(4) of such Act (7 U.S.C. 2025(g)(4)) is 
     amended by striking ``State plans under the Aid to Families 
     with Dependent Children Program under'' and inserting ``State 
     programs funded under part A of''.
       (f) Section 17 of such Act (7 U.S.C. 2026) is amended--
       (1) in subsection (b)--
       (A) the first sentence of paragraph (1)(A), by striking 
     ``aid to families with dependent children'' and inserting 
     ``assistance under a State program funded''; and
       (B) in paragraph (3)--
       (i) in the first sentence of subparagraph (B), by striking 
     ``aid to families with dependent children under part F of 
     title IV of the Social Security Act (42 U.S.C. 681 et seq.)'' 
     and inserting ``assistance under part
      A of title IV of the Social Security Act (42 U.S.C. 601 et 
     seq.)'';
       (ii) in subparagraph (C)--

       (II) in the first sentence, by striking ``subsections 
     (a)(19) and (g)'' and all that follows through ``section 
     402(g)(1)(A)) and''; and
       (III) in the second sentence, by striking ```aid to 
     families with dependent children''' and inserting 
     ```assistance under the State program funded under part A'''; 
     and

       (iii) in subparagraph (E), by striking ``the provisions of 
     section 402, and sections 481 through 487,'' and inserting 
     ``sections 481 through 487''; and
       (2) in subsection (i)--
       (A) in paragraph (1), by striking ``benefits under a State 
     plan'' and all that follows through ``and without regard'' 
     and inserting ``assistance under a State program funded under 
     part A of title IV of the Social Security Act (42 U.S.C. 601 
     et seq.) (referred to in this subsection as an `eligible 
     household') shall be issued monthly allotments following the 
     rules and procedures of the program, and without regard''; 
     and
       (B) in paragraph (2)--
       (i) in subparagraph (D)--

       (I) in the first sentence, by striking ``benefit provided 
     under'' and inserting ``assistance provided under a State 
     program funded under''; and
       (II) in the first sentence, by striking ``section 
     402(a)(7)(C)'' and all that follows to the end period and 
     inserting ``any nonrecurring lump-sum income and income 
     deemed or allocated to the household under the State program 
     funded under such part''; and

       (ii) in subparagraph (E)--

       (I) in the first sentence, by striking ``section 402(a)(8) 
     of the Social Security Act (42 U.S.C. 602(a)(8))'' and 
     inserting ``the State program funded under part A of title IV 
     of the Social Security Act''; and
       (II) in the second sentence, by striking ``the earned 
     income disregards provided under 402(a)(8) of the Social 
     Security Act'' and inserting ``any earned income disregards 
     provided under the State program funded under such part''.

       (g) Section 5(h)(1) of the Agriculture and Consumer 
     Protection Act of 1973 (Public Law 93-186; 7 U.S.C. 612c 
     note) is amended by striking ``the program for aid to 
     families with dependent children'' and inserting ``the State 
     program funded''.
       (h) Section 9 of the National School Lunch Act (42 U.S.C. 
     1758) is amended--
       (1) in subsection (b)--
       (A) in paragraph (2)(C)(ii)(II), by striking ``program for 
     aid to families with dependent children'' and inserting 
     ``State program funded''; and
       (B) in paragraph (6)--
       (i) in subparagraph (A)(ii), by striking ``an AFDC 
     assistance unit (under the aid to families with dependent 
     children program authorized'' and inserting ``a family (under 
     the State program funded''; and
       (ii) in subparagraph (B), by striking ``aid to families 
     with dependent children'' and inserting ``assistance under 
     the State
      program funded under part A of title IV of the Social 
     Security Act (42 U.S.C. 601 et seq.)''; and
       (2) in subsection (d)(2)(C), by striking ``program for aid 
     to families with dependent children'' and inserting ``State 
     program funded''.
       (i) Section 17 of the Child Nutrition Act of 1966 (42 
     U.S.C. 1786) is amended--
       (1) in subsection (d)(2)(A)(ii)(II), by striking ``program 
     for aid to families with dependent children established'' and 
     inserting ``State program funded'';
       (2) in subsection (e)(4)(A), by striking ``program for aid 
     to families with dependent children'' and inserting ``State 
     program funded''; and
       (3) in subsection (f)(1)(C)(iii), by striking ``aid to 
     families with dependent children,'' and inserting ``State 
     program funded under part A of title IV of the Social 
     Security Act (42 U.S.C. 601 et seq.) and with the''.

     SEC. 108. CONFORMING AMENDMENTS TO OTHER LAWS.

       (a) Subsection (b) of section 508 of the Unemployment 
     Compensation Amendments of 1976 (Public Law 94-566; 90 Stat. 
     2689) is amended to read as follows:
       ``(b) Provision for Reimbursement of Expenses.--For 
     purposes of section 455 of the Social Security Act, expenses 
     incurred to reimburse State employment offices for furnishing 
     information requested of such offices--
       ``(1) pursuant to the third sentence of section 3(a) of the 
     Act entitled `An Act to provide for the establishment of a 
     national employment system and for cooperation with the 
     States in the promotion of such system, and for other 
     purposes', approved June 6, 1933 (29 U.S.C. 49b(a)), or
       ``(2) by a State or local agency charged with the duty of 
     carrying a State plan for child support approved under part D 
     of title IV of the Social Security Act,

     shall be considered to constitute expenses incurred in the 
     administration of such State plan.''.
       (b) Section 9121 of the Omnibus Budget Reconciliation Act 
     of 1987 (42 U.S.C. 602 note) is repealed.
       (c) Section 9122 of the Omnibus Budget Reconciliation Act 
     of 1987 (42 U.S.C. 602 note) is repealed.
       (d) Section 221 of the Housing and Urban-Rural Recovery Act 
     of 1983 (42 U.S.C. 602 note), relating to treatment under 
     AFDC of certain rental payments for federally assisted 
     housing, is repealed.
       (e) Section 159 of the Tax Equity and Fiscal Responsibility 
     Act of 1982 (42 U.S.C. 602 note) is repealed.
       (f) Section 202(d) of the Social Security Amendments of 
     1967 (81 Stat. 882; 42 U.S.C. 602 note) is repealed.
       (g) Section 233 of the Social Security Act Amendments of 
     1994 (42 U.S.C. 602 note) is repealed.

[[Page S11583]]

       (h) Section 903 of the Stewart B. McKinney Homeless 
     Assistance Amendments Act of 1988 (42 U.S.C. 11381 note), 
     relating to demonstration projects to reduce number of AFDC 
     families in welfare hotels, is amended--
       (1) in subsection (a), by striking ``aid to families with 
     dependent children under a State plan approved'' and 
     inserting ``assistance under a State program funded''; and
       (2) in subsection (c), by striking ``aid to families with 
     dependent children in the State under a State plan approved'' 
     and inserting ``assistance in the State under a State program 
     funded''.
       (i) The Higher Education Act of 1965 (20 U.S.C. 1001 et 
     seq.) is amended--
       (1) in section 404C(c)(3) (20 U.S.C. 1070a-23(c)(3)), by 
     striking ``(Aid to Families with Dependent Children)''; and
       (2) in section 480(b)(2) (20 U.S.C. 1087vv(b)(2)), by 
     striking ``aid to families with dependent children under a 
     State plan approved'' and inserting ``assistance under a 
     State program funded''.
       (j) The Carl D. Perkins Vocational and Applied Technology 
     Education Act (20 U.S.C. 2301 et seq.) is amended--
       (1) in section 231(d)(3)(A)(ii) (20 U.S.C. 
     2341(d)(3)(A)(ii)), by striking ``the program for aid to 
     dependent children'' and inserting ``the State program 
     funded'';
       (2) in section 232(b)(2)(B) (20 U.S.C. 2341a(b)(2)(B)), by 
     striking ``the program for aid to families with dependent 
     children'' and inserting ``the State program funded''; and
       (3) in section 521(14)(B)(iii) (20 U.S.C. 
     2471(14)(B)(iii)), by striking ``the program for aid to 
     families with dependent children'' and inserting ``the State 
     program funded''.
       (k) The Elementary and Secondary Education Act of 1965 (20 
     U.S.C. 2701 et seq.) is amended--
       (1) in section 1113(a)(5) (20 U.S.C. 6313(a)(5)), by 
     striking ``Aid to Families with Dependent Children Program'' 
     and inserting ``State program funded under part A of title IV 
     of the Social Security Act'';
       (2) in section 1124(c)(5) (20 U.S.C. 6333(c)(5)), by 
     striking ``the program of aid to families with dependent 
     children under a State plan approved under'' and inserting 
     ``a State program funded under part A of''; and
       (3) in section 5203(b)(2) (20 U.S.C. 7233(b)(2))--
       (A) in subparagraph (A)(xi), by striking ``Aid to Families 
     with Dependent Children benefits'' and inserting ``assistance 
     under a State program funded under part A of title IV of the 
     Social Security Act''; and
       (B) in subparagraph (B)(viii), by striking ``Aid to 
     Families with Dependent Children'' and inserting ``assistance 
     under the State program funded under part A of title IV of 
     the Social Security Act''.
       (l) Chapter VII of title I of Public Law 99-88 (25 U.S.C. 
     13d-1) is amended to read as follows: ``Provided further, 
     That general assistance payments made by the Bureau of Indian 
     Affairs shall be made--
       ``(1) after April 29, 1985, and before October 1, 1995, on 
     the basis of Aid to Families with Dependent Children (AFDC) 
     standards of need; and
       ``(2) on and after October 1, 1995, on the basis of 
     standards of need established under the State program funded 
     under part A of title IV of the Social Security Act,

     except that where a State ratably reduces its AFDC or State 
     program payments, the Bureau shall reduce general assistance 
     payments in such State by the same percentage as the State 
     has reduced the AFDC or State program payment.''.
       (m) The Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.) 
     is amended--
       (1) in section 51(d)(9) (26 U.S.C. 51(d)(9)), by striking 
     all that follows ``agency as'' and inserting ``being eligible 
     for financial assistance under part A of title IV of the 
     Social Security Act and as having continually received such 
     financial assistance during the 90-day period which 
     immediately precedes the date on which such individual is 
     hired by the employer.'';
       (2) in section 3304(a)(16) (26 U.S.C. 3304(a)(16)), by 
     striking ``eligibility for aid or services,'' and all that 
     follows through ``children approved'' and inserting 
     ``eligibility for assistance, or the amount of such 
     assistance, under a State program funded'';
       (3) in section 6103(l)(7)(D)(i) (26 U.S.C. 
     6103(l)(7)(D)(i)), by striking ``aid to families with 
     dependent children provided under a State plan approved'' and 
     inserting ``a State program funded'';
       (4) in section 6334(a)(11)(A) (26 U.S.C. 6334(a)(11)(A)), 
     by striking ``(relating to aid to families with dependent 
     children)''; and
       (5) in section 7523(b)(3)(C) (26 U.S.C. 7523(b)(3)(C)), by 
     striking ``aid to families with dependent children'' and 
     inserting ``assistance under a State program funded under 
     part A of title IV of the Social Security Act''.
       (n) Section 3(b) of the Wagner-Peyser Act (29 U.S.C. 
     49b(b)) is amended by striking ``State plan approved under 
     part A of title IV'' and inserting ``State program funded 
     under part A of title IV''.
       (o) The Job Training Partnership Act (29 U.S.C. 1501 et 
     seq.) is amended--
       (1) in section 106(b)(6)(C) (29 U.S.C. 1516(b)(6)(C)), by 
     striking ``State aid to families with dependent children 
     records,'' and inserting ``records collected under the State 
     program funded under part A of title IV of the Social 
     Security Act'';
       (2) in section 501(1) (29 U.S.C. 1791(1)), by striking 
     ``aid to families with dependent children'' and inserting 
     ``assistance under the State program funded'';
       (3) in section 506(1)(A) (29 U.S.C. 1791e(1)(A)), by 
     striking ``aid to families with dependent children'' and 
     inserting ``assistance under the State program funded''; and
       (4) in section 508(a)(2)(A) (29 U.S.C. 1791g(a)(2)(A)), by 
     striking ``aid to families with dependent children'' and 
     inserting ``assistance under the State program funded''.
       (p) Section 3803(c)(2)(C)(iv) of title 31, United States 
     Code, is amended to read as follows:
       ``(iv) assistance under a State program funded under part A 
     of title IV of the Social Security Act''.
       (q) Section 2605(b)(2)(A)(i) of the Low-Income Home Energy 
     Assistance Act of 1981 (42 U.S.C. 8624(b)(2)(A)(i)) is 
     amended to read as follows:
       ``(i) assistance under the State program funded under part 
     A of title IV of the Social Security Act;''.
       (r) Section 303(f)(2) of the Family Support Act of 1988 (42 
     U.S.C. 602 note) is amended--
       (1) by striking ``(A)''; and
       (2) by striking subparagraphs (B) and (C).
       (s) The Balanced Budget and Emergency Deficit Control Act 
     of 1985 (2 U.S.C. 900 et seq.) is amended--
       (1) in section 255(h) (2 U.S.C. 905(h), by striking ``Aid 
     to families with dependent children (75-0412-0-1-609);'' and 
     inserting ``Block grants to States for temporary assistance 
     for needy families;''; and
       (2) in section 256 (2 U.S.C. 906)--
       (A) by striking subsection (k); and
       (B) by redesignating subsection (l) as subsection (k).
       (t) The Immigration and Nationality Act (8 U.S.C. 1101 et 
     seq.) is amended--
       (1) in section 210(f) (8 U.S.C. 1160(f)), by striking ``aid 
     under a State plan approved under'' each place it appears and 
     inserting ``assistance under a State program funded under'';
       (2) in section 245A(h) (8 U.S.C. 1255a(h))--
       (A) in paragraph (1)(A)(i), by striking ``program of aid to 
     families with dependent children'' and inserting ``State 
     program of assistance''; and
       (B) in paragraph (2)(B), by striking ``aid to families with 
     dependent children'' and inserting ``assistance under a State 
     program funded under part A of title IV of the Social 
     Security Act''; and
       (3) in section 412(e)(4) (8 U.S.C. 1522(e)(4)), by striking 
     ``State plan approved'' and inserting ``State program 
     funded''.
       (u) Section 640(a)(4)(B)(i) of the Head Start Act (42 
     U.S.C. 9835(a)(4)(B)(i)) is amended by striking ``program of 
     aid to families with dependent children under a State plan 
     approved'' and inserting ``State program of assistance 
     funded''.
       (v) Section 9 of the Act of April 19, 1950 (64 Stat. 47, 
     chapter 92; 25 U.S.C. 639) is repealed.

     SEC. 109. SECRETARIAL SUBMISSION OF LEGISLATIVE PROPOSAL FOR 
                   TECHNICAL AND CONFORMING AMENDMENTS.

       Not later than 90 days after the date of the enactment of 
     this Act, the Secretary of Health and Human Services, in 
     consultation, as appropriate, with the heads of other Federal 
     agencies, shall submit to the appropriate committees of 
     Congress a legislative proposal providing for such technical 
     and conforming amendments in the law as are required by the 
     provisions of this Act.

     SEC. 110. EFFECTIVE DATE; TRANSITION RULE.

       (a) In General.--Except as otherwise provided in this 
     title, this title and the amendments made by this title shall 
     take effect on October 1, 1995.
       (b) Transition Rule.--
       (1) State option to continue afdc program.--
       (A) 6-month extension.--A State may continue a State 
     program under parts A and F of title IV of the Social 
     Security Act, as in effect on September 30, 1995 (for 
     purposes of this paragraph, the ``State AFDC program'') until 
     March 31, 1996.
       (B) Reduction of fiscal year 1996 grant.--In the case of 
     any State opting to continue the State AFDC program pursuant 
     to subparagraph (A), the State family assistance grant paid 
     to such State under section 403(b) of the Social Security Act 
     (as added by section 101 and as in effect on and after 
     October 1, 1995) for fiscal year 1996 (after the termination 
     of the State AFDC program) shall be reduced by an amount 
     equal to the total Federal payment to such State under 
     section 403 of the Social Security Act (as in effect on 
     September 30, 1995) for such fiscal year.
       (2) Claims, actions, and proceedings.--The amendments made 
     by this title shall not apply with respect to--
       (A) powers, duties, functions, rights, claims, penalties, 
     or obligations applicable to aid, assistance, or services 
     provided before the effective date of this title under the 
     provisions amended; and
       (B) administrative actions and proceedings commenced before 
     such date, or authorized before such date to be commenced, 
     under such provisions.
              TITLE II--MODIFICATIONS TO THE JOBS PROGRAM

     SEC. 201. MODIFICATIONS TO THE JOBS PROGRAM.

       (a) Increased Employment and Job Retention.--
       (1) Job opportunities and basic skills.--The heading for 
     part F of title IV (42 U.S.C. 681 et seq.) is amended by 
     striking ``Training''.
       (2) Purpose.--Section 481(a) (42 U.S.C. 681(a)) is amended 
     to read as follows:
       ``Sec. 481. (a) Purpose.--It is the purpose of this part to 
     assist each State in providing such services as the State 
     determines to be necessary to--
       ``(1) enable individuals receiving assistance under part A 
     to enter employment as quickly as possible;
       ``(2) increase job retention among such individuals; and
       ``(3) ensure that needy families with children obtain the 
     supportive services that will help them avoid long-term 
     welfare dependence.''.

[[Page S11584]]

       (b) Establishment and Operation of State Programs.--
       (1) State plans for jobs programs.--Section 482(a) (42 
     U.S.C. 682(a)) is amended--
       (A) in the heading, by striking ``Training'';
       (B) in paragraph (1)--
       (i) in subparagraph (A)--

       (I) by striking ``of aid to families with dependent 
     children'';
       (II) by striking ``training''; and
       (III) by striking ``under a plan approved'' and all that 
     follows through the period and inserting a period;

       (ii) in subparagraph (B)--

       (I) in the matter preceding clause (i), by striking ``plan 
     for establishing and operating the program must describe'' 
     and inserting ``shall submit to the Secretary periodically, 
     but not less frequently than every 2 years, a plan 
     describing'';
       (II) in clause (ii)--

       (aa) by striking ``the extent to which such services are 
     expected to be made available by other agencies on a 
     nonreimbursable basis,''; and
       (bb) by striking ``program, and'' and inserting 
     ``program.''; and

       (III) by striking clause (iii);

       (iii) by striking subparagraph (C);
       (iv) in subparagraph (D)(i), by striking ``Not later than 
     October 1, 1992, each State shall make'' and inserting ``Each 
     State shall make appropriate services of''; and
       (v) by redesignating subparagraph (D) as subparagraph (C);
       (C) in paragraph (2)--
       (i) by striking ``(2) The'' and inserting ``(2)(A) The'';
       (ii) by striking ``approved''; and
       (iii) by adding at the end the following new subparagraphs:
       ``(B) The State agency shall establish procedures to--
       ``(i) encourage the placement of participants in jobs as 
     quickly as possible, including using performance measures 
     that reward staff performance, or such other management 
     practice as the State may choose; and
       ``(ii) assist participants in retaining employment after 
     they are hired.
       ``(C) The Secretary shall provide technical assistance and 
     training to States to assist the States in implementing 
     effective management practices and strategies in order to 
     achieve the purpose of this part.''; and
       (D) by striking paragraph (3).
       (2) Employability plan.--Section 482(b)(1) (42 U.S.C. 
     682(b)(1)) is amended--
       (A) in subparagraph (A), by inserting ``the employability 
     of each participant under the program and, in appropriate 
     circumstances, a subsequent assessment which may include'' 
     after ``assessment of''; and
       (B) in subparagraph (B)--
       (i) by striking ``such assessment'' and inserting ``the 
     subsequent assessment''; and
       (ii) by striking the last sentence.
       (3) Provision of information.--Section 482(c) (42 U.S.C. 
     682(c)) is amended--
       (A) in paragraph (1), by striking ``aid to families with 
     dependent children'' and inserting ``assistance under the 
     State program funded under part A'';
       (B) in paragraph (2), by striking ``aid to families with 
     dependent children'' and inserting ``assistance under the 
     State program funded under part A'';
       (C) in paragraph (4), by striking ``aid to families with 
     dependent children of the grounds for exemption from 
     participation in the program and the consequences of refusal 
     to participate if not exempt'' and inserting ``assistance 
     under the State program funded under part A of the 
     consequences of refusal to participate in the program under 
     this part''; and
       (D) by striking paragraph (5).
       (4) Services and activities.--Section 482(d) (42 U.S.C. 
     682(d)) is amended--
       (A) in paragraph (1)(A), by striking ``Such services and 
     activities--'' and all that follows through the period and 
     inserting ``Such services and activities shall be designed to 
     improve the employability of participants and may include any 
     combination of the following:
       ``(i) Educational activities (as appropriate), including 
     high school or equivalent education (combined with training 
     as needed), basic and remedial education to achieve a basic 
     literacy level, and education for individuals with limited 
     English proficiency.
       ``(ii) Job skills training.
       ``(iii) Job readiness activities to help prepare 
     participants for work.
       ``(iv) Job development and job placement.
       ``(v) Group and individual job search.
       ``(vi) On-the-job training.
       ``(vii) Work supplementation programs as described in 
     subsection (e).
       ``(viii) Community work experience programs as described in 
     subsection (f), or any other community service programs 
     approved by the State.
       ``(ix) A job placement voucher program, as described in 
     subsection (g).
       ``(x) Unsubsidized employment.'';
       (B) in paragraph (2), by striking the last sentence; and
       (C) in paragraph (3)--
       (i) by striking ``the Secretary shall permit up to 5 States 
     to'' and inserting ``A State may''; and
       (ii) by striking the last sentence.
       (5) Work supplementation program.--Section 482(e) (42 
     U.S.C. 682(e)) is amended--
       (A) in paragraph (1)--
       (i) by striking ``aid to families with dependent children'' 
     each place it appears and inserting ``assistance under the 
     State program funded under part A''; and
       (ii) by striking ``paragraph (3)(C)(i) and (ii)'' and 
     inserting ``paragraph (3)''; and
       (B) in paragraph (2)--
       (i) by striking subparagraphs (A), (C), (D), (F), and (G);
       (ii) in subparagraph (B), by striking ``approved'';
       (iii) in subparagraph (E)--

       (I) by striking ``aid to families with dependent children'' 
     and inserting ``assistance'';
       (II) by striking ``(as determined under subparagraph 
     (D))''; and
       (III) by striking ``State plan approved'' and inserting 
     ``State program''; and
       (iv) by redesignating subparagraphs (B) and (E) as 
     subparagraphs (A) and (B), respectively;
       (C) in paragraph (3) to read as follows:
       ``(3) For purposes of this section, a subsidized job is a 
     job provided to an individual for not more than a 12-month 
     period--
       ``(A) by the State or local agency administering the State 
     plan under part A; or
       ``(B) by any other employer for which all or part of the 
     wages are paid by such State or local agency.

     A State may provide or subsidize under the program any type 
     of job which such State determines to be appropriate.'';
       (D) by striking paragraph (4);
       (E) in paragraph (5)(A)--
       (i) by striking ``eligible'' each place it appears; and
       (ii) by redesignating such paragraph as paragraph (4);
       (F) in paragraph (6)--
       (i) by striking ``aid to families with dependent children 
     under the State plan approved'' each place it appears and 
     inserting ``assistance''; and
       (ii) by redesignating such paragraph as paragraph (5); and
       (G) by striking paragraph (7).
       (6) Community work experience program.--Section 482(f) (42 
     U.S.C. 682(f)) is amended--
       (A) in paragraph (1)--
       (i) in subparagraph (B)--

       (I) in clause (i), by striking ``aid to families with 
     dependent children payable with respect to the family of 
     which such individual is a member under the State plan 
     approved under this part'' and inserting ``assistance payable 
     with respect to the family of which such individual is a 
     member under the State program funded under part A''; and
       (II) in clause (ii), by striking ``aid to families with 
     dependent children payable with respect to the family of 
     which such individual is a member under the State plan 
     approved under this part (excluding any portion of such aid'' 
     and inserting ``assistance payable with respect to the family 
     of which such individual is a member under the State program 
     funded under part A (excluding any portion of such 
     assistance'';

       (ii) by striking subparagraph (C);
       (iii) in subparagraph (D)--

       (I) by striking ``approved''; and
       (II) by striking ``community work experience program'' and 
     all that follows through the period and inserting ``community 
     service program.''; and

       (iv) by redesignating subparagraphs (D) and (E) as 
     subparagraphs (C) and (D), respectively.
       (B) in paragraph (3)--
       (i) by striking ``any program of job search under 
     subsection (g),''; and
       (ii) by striking ``aid to families with dependent 
     children'' and inserting ``assistance under the State program 
     funded under part A''; and
       (C) by striking paragraph (4).
       (7) Job placement voucher program.--Section 482(g) (42 
     U.S.C. 682(g)) is amended to read as follows:
       ``(g) Job Placement Voucher Program.--(1) The State agency 
     may establish and operate a job placement voucher program for 
     individuals participating in the program under this part.
       ``(2) A State that elects to operate a job placement 
     voucher program under this subsection--
       ``(i) shall establish eligibility requirements for 
     participation in the job placement voucher program; and
       ``(ii) may establish other requirements for such voucher 
     program as the State deems appropriate.
       ``(3) A job placement voucher program operated by a State 
     under this subsection shall include the following 
     requirements:
       ``(A) The State shall identify, maintain, and make 
     available to an individual applying for or receiving 
     assistance under part A a list of State-approved job 
     placement organizations that offer services in the area where 
     the individual resides and a description of the job placement 
     and support services each such organization provides. Such 
     organizations may be publicly or privately owned and 
     operated.
       ``(B)(i) An individual determined to be eligible for 
     assistance under part A shall, at the time the individual 
     becomes eligible for such assistance--
       ``(I) receive the list and description described in 
     subparagraph (A);
       ``(II) agree, in exchange for job placement and support 
     services, to--

       ``(aa) execute, within a period of time permitted by the 
     State, a contract with a State-approved job placement 
     organization which provides that the organization shall 
     attempt to find employment for the individual; and
       ``(bb) comply with the terms of the contract; and

       ``(III) receive a job placement voucher (in an amount to be 
     determined by the State) for payment to a State-approved job 
     placement organization.
       ``(ii) The State shall impose the sanctions provided for in 
     section 404(b) on any individual who does not fulfill the 
     terms of a contract executed with a State-approved job 
     placement organization.
       ``(C) At the time an individual executes a contract with a 
     State-approved job placement organization, the individual 
     shall provide the organization with the job placement voucher 
     that the individual received pursuant to subparagraph (B).
       ``(D)(i) A State-approved job placement organization may 
     redeem for payment from the State 

[[Page S11585]]
     not more than 25 percent of the value of a job placement voucher upon 
     the initial receipt of the voucher for payment of costs 
     incurred in finding and placing an individual in an 
     employment position. The remaining value of such voucher 
     shall not be redeemed for payment from the State until the 
     State-approved job placement organization--
       ``(I) finds an employment position (as determined by the 
     State) for the individual who provided the voucher; and
       ``(II) certifies to the State that the individual remains 
     employed with the employer that the organization originally 
     placed the individual with for the greater of--
       ``(aa) 6 continuous months; or
       ``(bb) a period determined by the State.
       ``(ii) A State may modify, on a case-by-case basis, the 
     requirement of clause (i)(II) under such terms and conditions 
     as the State deems appropriate.
       ``(E)(i) The State shall establish performance-based 
     standards to evaluate the success of the State job placement 
     voucher program operated under this subsection in achieving 
     employment for individuals participating in such voucher 
     program. Such standards shall take into account the economic 
     conditions of the State in determining the rate of success.
       ``(ii) The State shall, not less than once a fiscal year, 
     evaluate the job placement voucher program operated under 
     this subsection in accordance with the performance-based 
     standards established under clause (i).
       ``(iii) The State shall submit a report containing the 
     results of an evaluation conducted under clause (ii) to the 
     Secretary and a description of the performance-based 
     standards used to conduct the evaluation in such form and 
     under such conditions as the Secretary shall require. The 
     Secretary shall review each report submitted under this 
     clause and may require the State to revise the performance-
     based standards if the Secretary determines that the State is 
     not achieving an adequate rate of success for such State.''.
       (8) Dispute resolution procedures.--Section 482(h) (42 
     U.S.C. 682(h)) is amended by striking ``or through the 
     provision of a hearing pursuant to section 402(a)(4); but in 
     no event shall aid to families with dependent children'' and 
     inserting ``; but in no event shall assistance under the 
     State program funded under part A''.
       (9) Provisions relating to indian tribes.--Section 482(i) 
     (42 U.S.C. 682(i)) is amended--
       (A) in paragraph (1)--
       (i) by striking ``training'' each place it appears; and
       (ii) in the second sentence, by inserting ``, for fiscal 
     years before 1996,'' after ``State'';
       (B) in paragraph (2), by inserting ``, for fiscal years 
     before 1996,'' after ``paragraph (1)'';
       (C) in paragraph (3)--
       (i) by striking ``training'' each place it appears; and
       (ii) by striking ``402(a)(19)'' and inserting ``404'';
       (D) in paragraph (4)--
       (i) by striking ``training''; and
       (ii) by striking ``and the maximum amount'' and all that 
     follows through the period at the end of the second sentence 
     and inserting ``and the amount that may be paid under section 
     403 to the State within which the tribe or Alaska Native 
     organization is located shall be increased by any portion of 
     the amount retained by the Secretary with respect to such 
     program (and not payable to such tribe or Alaska Native 
     organization for obligations already incurred).'';
       (E) in paragraph (7)(D), by striking ``training'' each 
     place it appears;
       (F) by redesignating paragraphs (3) through (8) as 
     paragraphs (4) through (9), respectively; and
       (G) by inserting after paragraph (2), the following new 
     paragraph:
       ``(3) For any fiscal year after 1995, the amount of payment 
     to any tribe or organization received under this subsection 
     shall be an amount equal to the amount such tribe or 
     organization received for fiscal year 1994.''.
       (c) Coordination Requirements.--Section 483 (42 U.S.C. 683) 
     is amended--
       (1) in subsection (a)(2), by striking ``not less than 60 
     days before its submission to the Secretary,'';
       (2) in subsection (b), by striking ``education and training 
     services'' and inserting ``necessary and supportive 
     assistance for employment''; and
       (3) in subsection (c), by striking ``approved''.
       (d) Provisions Generally Applicable.--Section 484 (42 
     U.S.C. 684) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1), by striking ``family 
     responsibilities,''; and
       (B) in paragraph (5), by striking ``, the participant's 
     circumstances,'';
       (2) in subsection (c), by striking the last sentence; and
       (3) in subsection (e), by striking ``AFDC program'' and 
     inserting ``State program funded under part A''.
       (e) Contract Authority.--Section 485 (42 U.S.C. 685) is 
     amended in subsections (a) and (c), by striking ``approved'' 
     each place it appears.
       (f) Performance Standards.--Section 487(c) (42 U.S.C. 
     687(c)) is amended by striking ``matching rate'' and 
     inserting ``payment to the States under section 403''.

     SEC. 202. EFFECTIVE DATE.

       This title and the amendments made by this title shall take 
     effect on October 1, 1995, unless a State has exercised the 
     option described in section 110(b).
                TITLE III--SUPPLEMENTAL SECURITY INCOME
                  Subtitle A--Eligibility Restrictions

     SEC. 301. DENIAL OF SUPPLEMENTAL SECURITY INCOME BENEFITS BY 
                   REASON OF DISABILITY TO DRUG ADDICTS AND 
                   ALCOHOLICS.

       (a) In General.--Section 1614(a)(3) (42 U.S.C. 1382c(a)(3)) 
     is amended by adding at the end the following new 
     subparagraph:
       ``(I) Notwithstanding subparagraph (A), an individual shall 
     not be considered to be disabled for purposes of this title 
     if alcoholism or drug addiction would (but for this 
     subparagraph) be a contributing factor material to the 
     Commissioner's determination that the individual is 
     disabled.''.
       (b) Conforming Amendments.--
       (1) Section 1611(e) (42 U.S.C. 1382(e)) is amended by 
     striking paragraph (3).
       (2) Section 1631(a)(2)(A)(ii) (42 U.S.C. 1383(a)(2)(A)(ii)) 
     is amended--
       (A) by striking ``(I)''; and
       (B) by striking subclause (II).
       (3) Section 1631(a)(2)(B) (42 U.S.C. 1383(a)(2)(B)) is 
     amended--
       (A) by striking clause (vii);
       (B) in clause (viii), by striking ``(ix)'' and inserting 
     ``(viii)'';
       (C) in clause (ix)--
       (i) by striking ``(viii)'' and inserting ``(vii)''; and
       (ii) in subclause (II), by striking all that follows ``15 
     years'' and inserting a period;
       (D) in clause (xiii)--
       (i) by striking ``(xii)'' and inserting ``(xi)''; and
       (ii) by striking ``(xi)'' and inserting ``(x)''; and
       (E) by redesignating clauses (viii) through (xiii) as 
     clauses (vii) through (xii), respectively.
       (4) Section 1631(a)(2)(D)(i)(II) (42 U.S.C. 
     1383(a)(2)(D)(i)(II)) is amended by striking all that follows 
     ``$25.00 per month'' and inserting a period.
       (5) Section 1634 (42 U.S.C. 1383c) is amended by striking 
     subsection (e).
       (6) Section 201(c)(1) of the Social Security Independence 
     and Program Improvements Act of 1994 (42 U.S.C. 425 note) is 
     amended--
       (A) by striking ``--'' and all that follows through ``(A)'' 
     the 1st place it appears;
       (B) by striking ``and'' the 3rd place it appears;
       (C) by striking subparagraph (B);
       (D) by striking ``either subparagraph (A) or subparagraph 
     (B)'' and inserting ``the preceding sentence''; and
       (E) by striking ``subparagraph (A) or (B)'' and inserting 
     ``the preceding sentence''.

     SEC. 302. LIMITED ELIGIBILITY OF NONCITIZENS FOR SSI 
                   BENEFITS.

       Paragraph (1) of section 1614(a) (42 U.S.C. 1382c(a)) is 
     amended--
       (1) in subparagraph (B)(i), by striking ``either'' and all 
     that follows through ``, or'' and inserting ``(I) a citizen; 
     (II) a noncitizen who is granted asylum under section 208 of 
     the Immigration and Nationality Act or whose deportation has 
     been withheld under section 243(h) of such Act for a period 
     of not more than 5 years after the date of arrival into the 
     United States; (III) a noncitizen who is admitted to the 
     United States as a refugee under section 207 of such Act for 
     not more than such 5-year period; (IV) a noncitizen, lawfully 
     present in any State (or any territory or possession of the 
     United States), who is a veteran (as defined in section 101 
     of title 38, United
      States Code) with a discharge characterized as an honorable 
     discharge and not on account of alienage or who is the 
     spouse or unmarried dependent child of such veteran; or 
     (V) a noncitizen who has worked sufficient calendar 
     quarters of coverage to be a fully insured individual for 
     benefits under title II, or''; and
       (2) by adding at the end the following new flush sentence:

     ``For purposes of subparagraph (B)(i)(IV), the determination 
     of whether a noncitizen is lawfully present in the United 
     States shall be made in accordance with regulations of the 
     Attorney General. A noncitizen shall not be considered to be 
     lawfully present in the United States for purposes of this 
     title merely because the noncitizen may be considered to be 
     permanently residing in the United States under color of law 
     for purposes of any particular program.''.

     SEC. 303. DENIAL OF SSI BENEFITS FOR 10 YEARS TO INDIVIDUALS 
                   FOUND TO HAVE FRAUDULENTLY MISREPRESENTED 
                   RESIDENCE IN ORDER TO OBTAIN BENEFITS 
                   SIMULTANEOUSLY IN 2 OR MORE STATES.

       Section 1614(a) (42 U.S.C. 1382c(a)) is amended by adding 
     at the end the following new paragraph:
       ``(5) An individual shall not be considered an eligible 
     individual for purposes of this title during the 10-year 
     period beginning on the date the individual is convicted in 
     Federal or State court of having made a fraudulent statement 
     or representation with respect to the place of residence of 
     the individual in order to receive assistance simultaneously 
     from 2 or more States under programs that are funded under 
     part A of title IV, title XIX, or the Food Stamp Act of 1977, 
     or benefits in 2 or more States under the supplemental 
     security income program under title XVI.''.

     SEC. 304. DENIAL OF SSI BENEFITS FOR FUGITIVE FELONS AND 
                   PROBATION AND PAROLE VIOLATORS.

       (a) In General.--Section 1611(e) (42 U.S.C. 1382(e)), as 
     amended by section 301(b)(1) of this Act, is amended by 
     inserting after paragraph (2) the following new paragraph:
       ``(3) A person shall not be an eligible individual or 
     eligible spouse for purposes of this title with respect to 
     any month if during such month the person is--
       ``(A) fleeing to avoid prosecution, or custody or 
     confinement after conviction, under the laws of the place 
     from which the person flees, for a crime, or an attempt to 
     commit a crime, which is a felony under the laws of the place 
     from which the person flees, or which, in the case of the 
     State of New Jersey, is a high misdemeanor under the laws of 
     such State; or
       ``(B) violating a condition of probation or parole imposed 
     under Federal or State law.''.

[[Page S11586]]

       (b) Exchange of Information With Law Enforcement 
     Agencies.--Section 1631(e) (42 U.S.C. 1383(e)) is amended by 
     inserting after paragraph (3) the following new paragraph:
       ``(4) Notwithstanding any other provision of law, the 
     Commissioner shall furnish any Federal, State, or local law 
     enforcement officer, upon the request of the officer, with 
     the current address of any recipient of benefits under this 
     title, if the officer furnishes the agency with the name of 
     the recipient and notifies the agency that--
       ``(A) the recipient--
       ``(i) is fleeing to avoid prosecution, or custody or 
     confinement after conviction, under the laws of the place 
     from which the person flees, for a crime, or an attempt to 
     commit a crime, which is a felony under the laws of the place 
     from which the person flees, or which, in the case of the 
     State of New Jersey, is a high misdemeanor under the laws of 
     such State;
       ``(ii) is violating a condition of probation or parole 
     imposed under Federal or State law; or
       ``(iii) has information that is necessary for the officer 
     to conduct the officer's official duties; and
       ``(B) the location or apprehension of the recipient is 
     within the officer's official duties.''.

     SEC. 305. EFFECTIVE DATES; APPLICATION TO CURRENT RECIPIENTS.

       (a) Sections 301 and 302.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by sections 301 and 302 shall apply to 
     applicants for benefits for months beginning on or after the 
     date of the enactment of this Act, without regard to whether 
     regulations have been issued to implement such amendments.
       (2) Application to current recipients.--
       (A) Application and notice.--Notwithstanding any other 
     provision of law, in the case of an individual who is 
     receiving supplemental security income benefits under title 
     XVI of the Social Security Act as of the date of the 
     enactment of this Act and whose eligibility for such benefits 
     would terminate by reason of the amendments made by section 
     301 or 302, such amendments shall apply with respect to the 
     benefits of such individual for months beginning on or after 
     January 1, 1997, and the Commissioner of Social Security 
     shall so notify the individual not later than 90 days after 
     the date of the enactment of this Act.
       (B) Reapplication.--
       (i) In general.--Not later than 120 days after the date of 
     the enactment of this Act, each individual notified pursuant 
     to subparagraph (A) who desires to reapply for benefits under 
     title XVI of the Social Security Act, as amended by this 
     title, shall reapply to the Commissioner of Social Security.
       (ii) Determination of eligibility.--Not later than 1 year 
     after the date of the enactment of this Act, the Commissioner 
     of Social Security shall determine the eligibility of each 
     individual who reapplies for benefits under clause (i) 
     pursuant to the procedures of such title.
       (b) Other Amendments.--The amendments made by sections 303 
     and 304 shall take effect on the date of the enactment of 
     this Act.
               Subtitle B--Benefits for Disabled Children

     SEC. 311. RESTRICTIONS ON ELIGIBILITY FOR BENEFITS.

       (a) Definition of Childhood Disability.--Section 1614(a)(3) 
     (42 U.S.C. 1382c(a)(3)), as amended by section 301(a), is 
     amended--
       (1) in subparagraph (A), by striking ``An individual'' and 
     inserting ``Except as provided in subparagraph (C), an 
     individual;
       (2) in subparagraph (A), by striking ``(or, in the case of 
     an individual under the age of 18, if he suffers from any 
     medically determinable physical or mental impairment of 
     comparable severity)'';
       (3) by redesignating subparagraphs (C) through (I) as 
     subparagraphs (D) through (J), respectively;
       (4) by inserting after subparagraph (B) the following new 
     subparagraph:
       ``(C) An individual under the age of 18 shall be considered 
     disabled for the purposes of this title if that individual 
     has a medically determinable physical or mental impairment, 
     which results in marked, pervasive, and severe functional 
     limitations, and which can be expected to result in death or 
     which has lasted or can be expected to last for a continuous 
     period of not less than 12 months.''; and
       (5) in subparagraph (F), as redesignated by paragraph (3), 
     by striking ``(D)'' and inserting ``(E)''.
       (b) Changes to Childhood SSI Regulations.--
       (1) Modification to medical criteria for evaluation of 
     mental and emotional disorders.--The Commissioner of Social 
     Security shall modify sections 112.00C.2. and 112.02B.2.c.(2) 
     of appendix 1 to subpart P of part 404 of title 20, Code of 
     Federal Regulations, to eliminate references to maladaptive 
     behavior in the domain of personal/behavorial function.
       (2) Discontinuance of individualized functional 
     assessment.--The Commissioner of Social Security shall 
     discontinue the individual functional assessment for children 
     set forth in sections 416.924d and 416.924e of title 20, Code 
     of Federal Regulations.
       (c) Effective Date; Application to Current Recipients.--
       (1) In general.--The amendments made by subsections (a) and 
     (b) shall apply to applicants for benefits for months 
     beginning on or after the date of the enactment of this Act, 
     without regard to whether regulations have been issued to 
     implement such amendments.
       (2) Application to current recipients.--
       (A) Continuing disability reviews.--Not later than 1 year 
     after the date of the enactment of this Act, the Commissioner 
     of Social Security shall redetermine pursuant to the 
     procedures of title XVI of the Social Security Act the 
     eligibility of any individual who is receiving supplemental 
     security income benefits under title XVI of the Social 
     Security Act as of the date of the enactment of this Act and 
     whose eligibility for such benefits would terminate by reason 
     of the amendments made by subsection (a) or (b). The 
     Commissioner of Social Security shall give redetermination 
     reviews under this subparagraph priority over other 
     redetermination reviews.
       (B) Grandfather and hold harmless.--The amendments made by 
     subsections (a) and (b), and the redetermination under 
     subparagraph (A), shall only apply with respect to the 
     benefits of an individual described in subparagraph (A) for 
     months beginning on or after January 1, 1997, and such 
     individual shall be held harmless for any payment of benefits 
     made until such date.
       (C) Notice.--Not later than 90 days after the date of the 
     enactment of this Act, the Commissioner of Social Security 
     shall notify an individual described in subparagraph (A) of 
     the provisions of this paragraph.

     SEC. 312. CONTINUING DISABILITY REVIEWS.

       (a) Continuing Disability Reviews Relating for Certain 
     Children.--Section 1614(a)(3)(H) (42 U.S.C. 1382c(a)(3)(H)), 
     as redesignated by section 311(a)(3), is amended--
       (1) by inserting ``(i)'' after ``(H)''; and
       (2) by adding at the end the following new clause:
       ``(ii)(I) Not less frequently than once every 3 years, the 
     Commissioner shall redetermine the eligibility for benefits 
     under this title of each individual who has not attained 18 
     years of age and is eligible for such benefits by reason of 
     disability.
       ``(II) Subclause (I) shall not apply to an individual if 
     the individual has an impairment (or combination of 
     impairments) which is (or are) not expected to improve.''.
       (b) Disability Review Required for SSI Recipients Who Are 
     18 Years of Age.--
       (1) In general.--Section 1614(a)(3)(H) (42 U.S.C. 
     1382c(a)(3)(H)), as amended by subsection (a), is amended by 
     adding at the end the following new clause:
       ``(iii) If an individual is eligible for benefits under 
     this title by reason of disability for the month preceding 
     the month in which the individual attains the age of 18 
     years, the Commissioner shall redetermine such eligibility--
       ``(I) during the 1-year period beginning on the 
     individual's 18th birthday; and
       ``(II) by applying the criteria used in determining such 
     eligibility for applicants who have attained the age of 18 
     years.

     A review under this clause shall be considered a substitute 
     for a review otherwise required under any other provision of 
     this subparagraph during that 1-year period.''.
       (2) Report to the congress.--Not later than October 1, 
     1998, the Commissioner of Social Security 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 
     activities conducted under section 1614(a)(3)(H)(iii) of the 
     Social Security Act, as added by paragraph (1).
       (3) Conforming repeal.--Section 207 of the Social Security 
     Independence and Program Improvements Act of 1994 (42 U.S.C. 
     1382 note; 108 Stat. 1516) is hereby repealed.
       (c) Disability Review Required for Low Birth Weight 
     Babies.--Section 1614(a)(3)(H) (42 U.S.C. 1382c(a)(3)(H)), as 
     amended by subsections (a) and (b), is amended by adding at 
     the end the following new clause:
       ``(iv)(I) Not later than 12 months after the birth of an 
     individual, the Commissioner shall redetermine the 
     eligibility for benefits under this title by reason of 
     disability of such individual whose low birth weight is a 
     contributing factor material to the Commissioner's 
     determination that the individual is disabled.
       ``(II) A redetermination under subclause (I) shall be 
     considered a substitute for a review otherwise required under 
     any other provision of this subparagraph during that 12-month 
     period.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to benefits for months beginning on or after the 
     date of the enactment of this Act, without regard to whether 
     regulations have been issued to implement such amendments.

     SEC. 313. TREATMENT REQUIREMENTS FOR DISABLED INDIVIDUALS 
                   UNDER THE AGE OF 18.

       (a) In General.--Section 1631(a)(2) (42 U.S.C. 1383(a)(2)) 
     is amended--
       (1) by redesignating subparagraphs (E) and (F) as 
     subparagraphs (F) and (G), respectively; and
       (2) by inserting after subparagraph (D) the following new 
     subparagraph:
       ``(E)(i) Not later than 3 months after the Commissioner 
     determines that an individual under the age of 18 is eligible 
     for benefits under this title by reason of disability (and 
     periodically thereafter, as the Commissioner may require), 
     the representative payee of such individual shall file with 
     the State agency that makes disability determinations on 
     behalf of the Commissioner of Social Security in the State in 
     which such individual resides, a copy of the treatment plan 
     required by clause (ii).
       ``(ii) The treatment plan required by this clause shall be 
     developed by the individual's treating physician or other 
     medical provider, or if approved by the Commissioner, other 
     service provider, and shall describe the services that such 
     physician or provider determines is appropriate for the 
     treatment of such individual's impairment or combination of 
     impairments. Such plan shall be in such form and contain such 
     information as the Commissioner may prescribe.
       ``(iii) The representative payee of any individual 
     described in clause (i) shall provide evidence of adherence 
     to the treatment plan described in 

[[Page S11587]]
     clause (ii) at the time of any redetermination of eligibility conducted 
     pursuant to section 1614(a)(3)(G)(ii), and at such other time 
     as the Commissioner may prescribe.
       ``(iv) The failure of a representative payee to comply 
     without good cause with the requirements of clause (i) or 
     (iii) shall constitute misuse of benefits to which 
     subparagraph (A)(iii) (but not subparagraph (F)) shall apply. 
     In providing for an alternative representative payee as 
     required by subparagraph (A)(iii), the Commissioner shall 
     give preference to the State agency that administers the 
     State plan approved under title XIX for the State in which 
     the individual described in clause (i) resides or any other 
     State agency designated by the State for such responsibility, 
     unless the Commissioner determines that selection of another 
     organization or person would be appropriate. Any such State 
     agency that serves as a representative payee shall be a 
     `qualified organization' for purposes of subparagraph (D) of 
     this paragraph.
       ``(v) This subparagraph shall not apply to the 
     representative payee of any individual with respect to whom 
     the Commissioner determines such application would be 
     inappropriate or unnecessary. In making such determinations, 
     the Commissioner shall take into consideration the nature of 
     the individual's impairment (or combination of impairments) 
     and the availability of treatment for such impairment (or 
     impairments). Section 1631(c) shall not apply to a finding by 
     the Commissioner that the requirements of
      this subparagraph should not apply to an individual's 
     representative payee.''.
       (b) Access to Medicaid Records.--
       (1) Requirement to furnish information.--Section 1902(a) 
     (42 U.S.C. 1396a(a)), as amended by section 103(b), is 
     amended--
       (A) by striking ``and'' at the end of paragraph (62);
       (B) by striking the period at the end of paragraph (63) and 
     inserting ``; and''; and
       (C) by adding after paragraph (63) the following new 
     paragraph:
       ``(64) provide that the State agency that administers the 
     plan described in this section shall make available to the 
     Commissioner of Social Security such information as the 
     Commissioner may request in connection with the verification 
     of information furnished to the Commissioner by a 
     representative payee pursuant to section 
     1631(a)(2)(E)(iii).''.
       (2) Reimbursement of state costs.--Section 1633 (42 U.S.C. 
     1383b) is amended by adding at the end the following new 
     subsection:
       ``(d) The Commissioner of Social Security shall reimburse a 
     State for the costs of providing information pursuant to 
     section 1902(a)(64) from funds available for carrying out 
     this title.''.
       (c) Report to the Congress.--Not later than the last day of 
     the 36th month beginning after the date of the enactment of 
     this Act, the Inspector General of the Social Security 
     Administration shall report to the Committee on Ways and 
     Means of the House of Representatives and the Committee on 
     Finance of the Senate on the implementation of this section.
       (d) Effective Date.--This section shall take effect on the 
     1st day of the 12th month that begins after the date of the 
     enactment of this Act.
         Subtitle C--Study of Disability Determination Process

     SEC. 321. STUDY OF DISABILITY DETERMINATION PROCESS.

       (a) In General.--Not later than 180 days after the date of 
     the enactment of this Act, and from funds otherwise 
     appropriated, the Commissioner of Social Security shall 
     contract with the National Academy of Sciences, or other 
     independent entity, to conduct a comprehensive study of the 
     disability determination process under titles II and XVI of 
     the Social Security Act, including the validity, reliability, 
     equity, and consistency with current scientific knowledge and 
     standards of the Listing of Impairments set forth in appendix 
     1 of subpart P of part 404 of title 20, Code of Federal 
     Regulations.
       (b) Study of Definitions.--The study described in 
     subsection (a) shall also include an examination of the 
     appropriateness of the definitions of disability in titles II 
     and XVI of the Social Security Act and the advantages and 
     disadvantages of alternative definitions.
       (c) Reports.--The Commissioner of Social Security shall, 
     through the applicable entity, issue an interim report and a 
     final report of the findings and recommendations resulting 
     from the study described in this section to the President and 
     the Congress not later than 12 months and 24 months, 
     respectively, from the date of the contract for such study.
      Subtitle D--National Commission on the Future of Disability

     SEC. 331. ESTABLISHMENT.

       There is established a commission to be known as the 
     National Commission on the Future of Disability (referred to 
     in this subtitle as the ``Commission''), the expenses of 
     which shall be paid from funds otherwise appropriated for the 
     Social Security Administration.

     SEC. 332. DUTIES OF THE COMMISSION.

       (a) In General.--The Commission shall develop and carry out 
     a comprehensive study of all matters related to the nature, 
     purpose, and adequacy of all Federal programs serving 
     individuals with disabilities. In particular, the Commission 
     shall study the disability insurance program under title II 
     of the Social Security Act and the supplemental security 
     income program under title XVI of such Act.
       (b) Matters Studied.--The Commission shall prepare an 
     inventory of Federal programs serving individuals with 
     disabilities, and shall examine--
       (1) trends and projections regarding the size and 
     characteristics of the population of individuals with 
     disabilities, and the implications of such analyses for 
     program planning;
       (2) the feasibility and design of performance standards for 
     the Nation's disability programs;
       (3) the adequacy of Federal efforts in rehabilitation 
     research and training, and opportunities to improve the lives 
     of individuals with disabilities through all manners of 
     scientific and engineering research; and
       (4) the adequacy of policy research available to the 
     Federal Government, and what actions might be undertaken to 
     improve the quality and scope of such research.
       (c) Recommendations.--The Commission shall submit to the 
     appropriate committees of the Congress and to the President 
     recommendations and, as appropriate, proposals for 
     legislation, regarding--
       (1) which (if any) Federal disability programs should be 
     eliminated or augmented;
       (2) what new Federal disability programs (if any) should be 
     established;
       (3) the suitability of the organization and location of 
     disability programs within the Federal Government;
       (4) other actions the Federal Government should take to 
     prevent disabilities and disadvantages associated with 
     disabilities; and
       (5) such other matters as the Commission considers 
     appropriate.

     SEC. 333. MEMBERSHIP.

       (a) Number and Appointment.--
       (1) In general.--The Commission shall be composed of 15 
     members, of whom--
       (A) five shall be appointed by the President, of whom not 
     more than 3 shall be of the same major political party;
       (B) three shall be appointed by the Majority Leader of the 
     Senate;
       (C) two shall be appointed by the Minority Leader of the 
     Senate;
       (D) three shall be appointed by the Speaker of the House of 
     Representatives; and
       (E) two shall be appointed by the Minority Leader of the 
     House of Representatives.
       (2) Representation.--The Commission members shall be chosen 
     based on their education, training, or experience. In 
     appointing individuals as members of the Commission, the 
     President and the Majority and Minority Leaders of the Senate 
     and the Speaker and Minority Leader of the House of 
     Representatives shall seek to ensure that the membership of 
     the Commission reflects the diversity of individuals with 
     disabilities in the United States.
       (b) Comptroller General.--The Comptroller General shall 
     serve on the Commission as an ex officio member of the 
     Commission to advise and oversee the methodology and approach 
     of the study of the Commission.
       (c) Prohibition Against Officer or Employee.--No officer or 
     employee of any government shall be appointed under 
     subsection (a).
       (d) Deadline for Appointment; Term of Appointment.--Members 
     of the Commission shall be appointed not later than 60 days 
     after the date of the enactment of this Act. The members 
     shall serve on the Commission for the life of the Commission.
       (e) Meetings.--The Commission shall locate its headquarters 
     in the District of Columbia, and shall meet at the call of 
     the Chairperson, but not less than 4 times each year during 
     the life of the Commission.
       (f) Quorum.--Ten members of the Commission shall constitute 
     a quorum, but a lesser number may hold hearings.
       (g) Chairperson and Vice Chairperson.--Not later than 15 
     days after the members of the Commission are appointed, such 
     members shall designate a Chairperson and Vice Chairperson 
     from among the members of the Commission.
       (h) Continuation of Membership.--If a member of the 
     Commission becomes an officer or employee of any government 
     after appointment to the Commission, the individual may 
     continue as a member until a successor member is appointed.
       (i) Vacancies.--A vacancy on the Commission shall be filled 
     in the manner in which the original appointment was made not 
     later than 30 days after the Commission is given notice of 
     the vacancy.
       (j) Compensation.--Members of the Commission shall receive 
     no additional pay, allowances, or benefits by reason of their 
     service on the Commission.
       (k) Travel Expenses.--Each member of the Commission shall 
     receive travel expenses, including per diem in lieu of 
     subsistence, in accordance with sections 5702 and 5703 of 
     title 5, United States Code.

     SEC. 334. STAFF AND SUPPORT SERVICES.

       (a) Director.--
       (1) Appointment.--Upon consultation with the members of the 
     Commission, the Chairperson shall appoint a Director of the 
     Commission.
       (2) Compensation.--The Director shall be paid the rate of 
     basic pay for level V of the Executive Schedule.
       (b) Staff.--With the approval of the Commission, the 
     Director may appoint such personnel as the Director considers 
     appropriate.
       (c) Applicability of Civil Service Laws.--The staff of the 
     Commission shall be appointed without regard to the 
     provisions of title 5, United States Code, governing 
     appointments in the competitive service, and shall be paid 
     without regard to the provisions of chapter 51 and subchapter 
     III of chapter 53 of such title relating to classification 
     and General Schedule pay rates.
       (d) Experts and Consultants.--With the approval of the 
     Commission, the Director may procure temporary and 
     intermittent services under section 3109(b) of title 5, 
     United States Code.
       (e) Staff of Federal Agencies.--Upon the request of the 
     Commission, the head of any Federal agency may detail, on a 
     reimbursable basis, any of the personnel of such agency to 
     the Commission to assist in carrying out the duties of the 
     Commission under this subtitle.
       (f) Other Resources.--The Commission shall have reasonable 
     access to materials, resources, statistical data, and other 
     information from the Library of Congress and agencies and 
     elected 

[[Page S11588]]
     representatives of the executive and legislative branches of the 
     Federal Government. The Chairperson of the Commission shall 
     make requests for such access in writing when necessary.
       (g) Physical Facilities.--The Administrator of the General 
     Services Administration shall locate suitable office space 
     for the operation of the Commission. The facilities shall 
     serve as the headquarters of the Commission and shall include 
     all necessary equipment and incidentals required for proper 
     functioning of the Commission.

     SEC. 335. POWERS OF COMMISSION.

       (a) Hearings.--The Commission may conduct public hearings 
     or forums at the discretion of the Commission, at any time 
     and place the Commission is able to secure facilities and 
     witnesses, for the purpose of carrying out the duties of the 
     Commission under this subtitle.
       (b) Delegation of Authority.--Any member or agent of the 
     Commission may, if authorized by the Commission, take any 
     action the Commission is authorized to take by this section.
       (c) Information.--The Commission may secure directly from 
     any Federal agency information necessary to enable the 
     Commission to carry out its duties under this subtitle. Upon 
     request of the Chairperson or Vice Chairperson of the 
     Commission, the head of a Federal agency shall furnish the 
     information to the Commission to the extent permitted by law.
       (d) Gifts, Bequests, and Devises.--The Commission may 
     accept, use, and dispose of gifts, bequests, or devises of 
     services or property, both real and personal, for the purpose 
     of aiding or facilitating the work of the Commission. Gifts, 
     bequests, or devises of money and proceeds from sales of 
     other property received as gifts, bequests, or devises shall 
     be deposited in the Treasury and shall be available for 
     disbursement upon order of the Commission.
       (e) Mails.--The Commission may use the United States mails 
     in the same manner and under the same conditions as other 
     Federal agencies.
     SEC. 336. REPORTS.

       (a) Interim Report.--Not later than 1 year prior to the 
     date on which the Commission terminates pursuant to section 
     337, the Commission shall submit an interim report to the 
     President and to the Congress. The interim report shall 
     contain a detailed statement of the findings and conclusions 
     of the Commission, together with the Commission's 
     recommendations for legislative and administrative action, 
     based on the activities of the Commission.
       (b) Final Report.--Not later than the date on which the 
     Commission terminates, the Commission shall submit to the 
     Congress and to the President a final report containing--
       (1) a detailed statement of final findings, conclusions, 
     and recommendations; and
       (2) an assessment of the extent to which recommendations of 
     the Commission included in the interim report under 
     subsection (a) have been implemented.
       (c) Printing and Public Distribution.--Upon receipt of each 
     report of the Commission under this section, the President 
     shall--
       (1) order the report to be printed; and
       (2) make the report available to the public upon request.

     SEC. 337. TERMINATION.

       The Commission shall terminate on the date that is 2 years 
     after the date on which the members of the Commission have 
     met and designated a Chairperson and Vice Chairperson.
                        TITLE IV--CHILD SUPPORT
     Subtitle A--Eligibility for Services; Distribution of Payments

     SEC. 401. STATE OBLIGATION TO PROVIDE CHILD SUPPORT 
                   ENFORCEMENT SERVICES.

       (a) State Plan Requirements.--Section 454 (42 U.S.C. 654) 
     is amended--
       (1) by striking paragraph (4) and inserting the following 
     new paragraph:
       ``(4) provide that the State will--
       ``(A) provide services relating to the establishment of 
     paternity or the establishment, modification, or enforcement 
     of child support obligations, as appropriate, under the plan 
     with respect to--
       ``(i) each child for whom (I) cash assistance is provided 
     under the State program funded under part A of this title, 
     (II) benefits or services are provided under the State 
     program funded under part B of this title, or (III) medical 
     assistance is provided under the State plan approved under 
     title XIX, unless the State agency administering the plan 
     determines (in accordance with paragraph (28)) that it is 
     against the best interests of the child to do so; and
       ``(ii) any other child, if an individual applies for such 
     services with respect to the child; and
       ``(B) enforce any support obligation established with 
     respect to--
       ``(i) a child with respect to whom the State provides 
     services under the plan; or
       ``(ii) the custodial parent of such a child.''; and
       (2) in paragraph (6)--
       (A) by striking ``provide that'' and inserting ``provide 
     that--'';
       (B) by striking subparagraph (A) and inserting the 
     following new subparagraph:
       ``(A) services under the plan shall be made available to 
     nonresidents on the same terms as to residents;'';
       (C) in subparagraph (B), by inserting ``on individuals not 
     receiving assistance under any State program funded under 
     part A'' after ``such services shall be imposed'';
       (D) in each of subparagraphs (B), (C), (D), and (E)--
       (i) by indenting the subparagraph in the same manner as, 
     and aligning the left margin of the subparagraph with the 
     left margin of, the matter inserted by subparagraph (B) of 
     this paragraph; and
       (ii) by striking the final comma and inserting a semicolon; 
     and
       (E) in subparagraph (E), by indenting each of clauses (i) 
     and (ii) 2 additional ems.
       (b) Conforming Amendments.--
       (1) Section 452(b) (42 U.S.C. 652(b)) is amended by 
     striking ``454(6)'' and inserting ``454(4)''.
       (2) Section 452(g)(2)(A) (42 U.S.C. 652(g)(2)(A)) is 
     amended by striking ``454(6)'' each place it appears and 
     inserting ``454(4)(A)(ii)''.
       (3) Section 466(a)(3)(B) (42 U.S.C. 666(a)(3)(B)) is 
     amended by striking ``in the case of overdue support which a 
     State has agreed to collect under section 454(6)'' and 
     inserting ``in any other case''.
       (4) Section 466(e) (42 U.S.C. 666(e)) is amended by 
     striking ``paragraph (4) or (6) of section 454'' and 
     inserting ``section 454(4)''.

     SEC. 402. DISTRIBUTION OF CHILD SUPPORT COLLECTIONS.

       (a) In General.--Section 457 (42 U.S.C. 657) is amended to 
     read as follows:

     ``SEC. 457. DISTRIBUTION OF COLLECTED SUPPORT.

       ``(a) In General.--An amount collected on behalf of a 
     family as support by a State pursuant to a plan approved 
     under this part shall be distributed as follows:
       ``(1) Families receiving cash assistance.--In the case of a 
     family receiving cash assistance from the State, the State 
     shall--
       ``(A) retain, or distribute to the family, the State share 
     of the amount so collected; and
       ``(B) pay to the Federal Government the Federal share of 
     the amount so collected.
       ``(2) Families that formerly received cash assistance.--In 
     the case of a family that formerly received cash assistance 
     from the State:
       ``(A) Current support payments.--To the extent that the 
     amount so collected does not exceed the amount required to be 
     paid to the family for the month in which collected, the 
     State shall distribute the amount so collected to the family.
       ``(B) Payments of arrearages.--To the extent that the 
     amount so collected exceeds the amount required to be paid to 
     the family for the month in which collected, the State shall 
     distribute the amount so collected as follows:
       ``(i) Distribution to the family to satisfy arrearages that 
     accrued before or after the family received cash 
     assistance.--The State shall distribute the amount so 
     collected to the family to the extent necessary to satisfy 
     any support arrearages with respect to the family that 
     accrued before or after the family received cash assistance 
     from the State.
       ``(ii) Reimbursement of governments for assistance provided 
     to the family.--To the extent that clause (i) does not apply 
     to the amount, the State shall retain the State share of the 
     amount so collected, and pay to the Federal Government the 
     Federal share of the amount so collected, to the extent 
     necessary to reimburse amounts paid to the family as cash 
     assistance from the State.
       ``(iii) Distribution of the remainder to the family.--To 
     the extent that neither clause (i) nor clause (ii) applies to 
     the amount so collected, the State shall distribute the 
     amount to the family.
       ``(3) Families that never received cash assistance.--In the 
     case of any other family, the State shall distribute the 
     amount so collected to the family.
       ``(b) Definitions.--As used in subsection (a):
       ``(1) Cash assistance.--The term `cash assistance from the 
     State' means--
       ``(A) cash assistance under the State program funded under 
     part A or under the State plan approved under part A of this 
     title (as in effect before October 1, 1995); or
       ``(B) cash benefits under the State program funded under 
     part B or under the State plan approved under part B or E of 
     this title (as in effect before October 1, 1995).
       ``(2) Federal share.--The term `Federal share' means, with 
     respect to an amount collected by the State to satisfy a 
     support obligation owed to a family for a time period--
       ``(A) the greatest Federal medical assistance percentage in 
     effect for the State for fiscal year 1995 or any succeeding 
     fiscal year; or
       ``(B) if support is not owed to the family for any month 
     for which the family received aid to families with dependent 
     children under the State plan approved under part A of this 
     title (as in effect before October 1, 1995), the Federal 
     reimbursement percentage for the fiscal year in which the 
     time period occurs.
       ``(3) Federal medical assistance percentage.--The term 
     `Federal medical assistance percentage' means--
       ``(A) the Federal medical assistance percentage (as defined 
     in section 1905(b)) in the case of any State for which 
     subparagraph (B) does not apply; or
       ``(B) the Federal medical assistance percentage (as defined 
     in section 1118), in the case of Puerto Rico, the Virgin 
     Islands, Guam, and American Samoa.
       ``(4) Federal reimbursement percentage.--The term `Federal 
     reimbursement percentage' means, with respect to a fiscal 
     year--
       ``(A) the total amount paid to the State under section 403 
     for the fiscal year; divided by
       ``(B) the total amount expended by the State to carry out 
     the State program under part A during the fiscal year.
       ``(5) State share.--The term `State share' means 100 
     percent minus the Federal share.
       ``(c) Continuation of Services for Families Ceasing To 
     Receive Assistance Under the State Program Funded Under Part 
     A.--When a family with respect to which services are provided 
     under a State plan approved under this part ceases to receive 
     assistance under the State program funded under part A, the 
     State shall provide appropriate notice to the family and 
     continue to provide such services, subject to the same 
     conditions and on the same basis as in the case of 
     individuals to whom services are furnished under section 454, 
     except that an application or other request to continue 
     services shall 

[[Page S11589]]
     not be required of such a family and section 454(6)(B) shall not apply 
     to the family.''.
       (b) Clerical Amendments.--Section 454 (42 U.S.C. 654) is 
     amended--
       (1) in paragraph (11)--
       (A) by striking ``(11)'' and inserting ``(11)(A)''; and
       (B) by inserting after the semicolon ``and''; and
       (2) by redesignating paragraph (12) as subparagraph (B) of 
     paragraph (11).
       (c) Effective Date.--
       (1) General rule.--Except as provided in paragraphs (2) and 
     (3), the amendment made by subsection (a) shall become 
     effective on October 1, 1999.
       (2) Earlier effective date for rules relating to 
     distribution of support collected for families receiving cash 
     assistance.--Section 457(a)(1) of the Social Security Act, as 
     added by the amendment made by subsection (a), shall become 
     effective on October 1, 1995.
       (3) Clerical amendments.--The amendments made by subsection 
     (b) shall become effective on October 1, 1995.

     SEC. 403. RIGHTS TO NOTIFICATION AND HEARINGS.

       (a) In General.--Section 454 (42 U.S.C. 654), as amended by 
     section 402(b), is amended by inserting after paragraph (11) 
     the following new paragraph:
       ``(12) establish procedures to provide that--
       ``(A) individuals who are applying for or receiving 
     services under this part, or are parties to cases in which 
     services are being provided under this part--
       ``(i) receive notice of all proceedings in which support 
     obligations might be established or modified; and
       ``(ii) receive a copy of any order establishing or 
     modifying a child support obligation, or (in the case of a 
     petition for modification) a notice of determination that 
     there should be no change in the amount of the child support 
     award, within 14 days after issuance of such order or 
     determination; and
       ``(B) individuals applying for or receiving services under 
     this part have access to a fair hearing or other formal 
     complaint procedure that meets standards established by the 
     Secretary and ensures prompt consideration and resolution of 
     complaints (but the resort to such procedure shall not stay 
     the enforcement of any support order);''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall become effective on October 1, 1997.

     SEC. 404. PRIVACY SAFEGUARDS.

       (a) State Plan Requirement.--Section 454 (42 U.S.C. 654) is 
     amended--
       (1) by striking ``and'' at the end of paragraph (23);
       (2) by striking the period at the end of paragraph (24) and 
     inserting ``; and''; and
       (3) by adding after paragraph (24) the following new 
     paragraph:
       ``(25) will have in effect safeguards, applicable to all 
     confidential information handled by the State agency, that 
     are designed to protect the privacy rights of the parties, 
     including--
       ``(A) safeguards against unauthorized use or disclosure of 
     information relating to proceedings or actions to establish 
     paternity, or to establish or enforce support;
       ``(B) prohibitions against the release of information on 
     the whereabouts of 1 party to another party against whom a 
     protective order with respect to the former party has been 
     entered; and
       ``(C) prohibitions against the release of information on 
     the whereabouts of 1 party to another party if the State has 
     reason to believe that the release of the information may 
     result in physical or emotional harm to the former party.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall become effective on October 1, 1997.
                  Subtitle B--Locate and Case Tracking

     SEC. 411. STATE CASE REGISTRY.

       Section 454A, as added by section 445(a)(2) of this Act, is 
     amended by adding at the end the following new subsections:
       ``(e) State Case Registry.--
       ``(1) Contents.--The automated system required by this 
     section shall include a registry (which shall be known as the 
     `State case registry') that contains records with respect 
     to--
       ``(A) each case in which services are being provided by the 
     State agency under the State plan approved under this part; 
     and
       ``(B) each support order established or modified in the 
     State on or after October 1, 1998.
       ``(2) Linking of local registries.--The State case registry 
     may be established by linking local case registries of 
     support orders through an automated information network, 
     subject to this section.
       ``(3) Use of standardized data elements.--Such records 
     shall use standardized data elements for both parents (such 
     as names, social security numbers and other uniform 
     identification numbers, dates of birth, and case 
     identification numbers), and contain such other information 
     (such as on-case status) as the Secretary may require.
       ``(4) Payment records.--Each case record in the State case 
     registry with respect to which services are being provided 
     under the State plan approved under this part and with 
     respect to which a support order has been established shall 
     include a record of--
       ``(A) the amount of monthly (or other periodic) support 
     owed under the order, and other amounts (including 
     arrearages, interest or late payment penalties, and fees) due 
     or overdue under the order;
       ``(B) any amount described in subparagraph (A) that has 
     been collected;
       ``(C) the distribution of such collected amounts;
       ``(D) the birth date of any child for whom the order 
     requires the provision of support; and
       ``(E) the amount of any lien imposed with respect to the 
     order pursuant to section 466(a)(4).
       ``(5) Updating and monitoring.--The State agency operating 
     the automated system required by this section shall promptly 
     establish and maintain, and regularly monitor, case records 
     in the State case registry with respect to which services are 
     being provided under the State plan approved under this part, 
     on the basis of--
       ``(A) information on administrative actions and 
     administrative and judicial proceedings and orders relating 
     to paternity and support;
       ``(B) information obtained from comparison with Federal, 
     State, or local sources of information;
       ``(C) information on support collections and distributions; 
     and
       ``(D) any other relevant information.
       ``(f) Information Comparisons and Other Disclosures of 
     Information.--The State shall use the automated system 
     required by this section to extract information from (at such 
     times, and in such standardized format or formats, as may be 
     required by the Secretary), to share and compare information 
     with, and to receive information from, other data bases and 
     information comparison services, in order to obtain (or 
     provide) information necessary to enable the State agency (or 
     the Secretary or other State or Federal agencies) to carry 
     out this part, subject to section 6103 of the Internal 
     Revenue Code of 1986. Such information comparison activities 
     shall include the following:
       ``(1) Federal case registry of child support orders.--
     Furnishing to the Federal Case Registry of Child Support 
     Orders established under section 453(h) (and update as 
     necessary, with information including notice of expiration of 
     orders) the minimum amount of information on child support 
     cases recorded in the State case registry that is necessary 
     to operate the registry (as specified by the Secretary in 
     regulations).
       ``(2) Federal parent locator service.--Exchanging 
     information with the Federal Parent Locator Service for the 
     purposes specified in section 453.
       ``(3) Temporary family assistance and medicaid agencies.--
     Exchanging information with State agencies (of the State and 
     of other States) administering programs funded under part A, 
     programs operated under State plans under title XIX, and 
     other programs designated by the Secretary, as necessary to 
     perform State agency responsibilities under this part and 
     under such programs.
       ``(4) Intrastate and interstate information comparisons.--
     Exchanging information with other agencies of the State, 
     agencies of other States, and interstate information 
     networks, as necessary and appropriate to carry out (or 
     assist other States to carry out) the purposes of this 
     part.''.

     SEC. 412. COLLECTION AND DISBURSEMENT OF SUPPORT PAYMENTS.

       (a) State Plan Requirement.--Section 454 (42 U.S.C. 654), 
     as amended by section 404(a) of this Act, is amended--
       (1) by striking ``and'' at the end of paragraph (24);
       (2) by striking the period at the end of paragraph (25) and 
     inserting ``; and''; and
       (3) by adding after paragraph (25) the following new 
     paragraph:
       ``(26) provide that, on and after October 1, 1998, the 
     State agency will--
       ``(A) operate a State disbursement unit in accordance with 
     section 454B; and
       ``(B) have sufficient State staff (consisting of State 
     employees), and (at State option) contractors reporting 
     directly to the State agency, to--
       ``(i) monitor and enforce support collections through the 
     unit (including carrying out the automated data processing 
     responsibilities described in section 454A(g)); and
       ``(ii) take the actions described in section 466(c)(1) in 
     appropriate cases.''.
       (b) Establishment of State Disbursement Unit.--Part D of 
     title IV (42 U.S.C. 651-669), as amended by section 445(a)(2) 
     of this Act, is amended by inserting after section 454A the 
     following new section:

     ``SEC. 454B. COLLECTION AND DISBURSEMENT OF SUPPORT PAYMENTS.

       ``(a) State Disbursement Unit.--
       ``(1) In general.--In order for a State to meet the 
     requirements of this section, the State agency must establish 
     and operate a unit (which shall be known as the `State 
     disbursement unit') for the collection and disbursement of 
     payments under support orders in all cases being enforced by 
     the State pursuant to section 454(4).
       ``(2) Operation.--The State disbursement unit shall be 
     operated--
       ``(A) directly by the State agency (or 2 or more State 
     agencies under a regional cooperative agreement), or (to the 
     extent appropriate) by a contractor responsible directly to 
     the State agency; and
       ``(B) in coordination with the automated system established 
     by the State pursuant to section 454A.
       ``(3) Linking of local disbursement units.--The State 
     disbursement unit may be established by linking local 
     disbursement units through an automated information network, 
     subject to this section. The Secretary must agree that the 
     system will not cost more nor take more time to establish or 
     operate than a centralized system. In addition, employers 
     shall be given 1 location to which income withholding is 
     sent.
       ``(b) Required Procedures.--The State disbursement unit 
     shall use automated procedures, electronic processes, and 
     computer-driven technology to the maximum extent feasible, 
     efficient, and economical, for the collection and 
     disbursement of support payments, including procedures--
       ``(1) for receipt of payments from parents, employers, and 
     other States, and for disbursements 

[[Page S11590]]
     to custodial parents and other obligees, the State agency, and the 
     agencies of other States;
       ``(2) for accurate identification of payments;
       ``(3) to ensure prompt disbursement of the custodial 
     parent's share of any payment; and
       ``(4) to furnish to any parent, upon request, timely 
     information on the current status of support payments under 
     an order requiring payments to be made by or to the parent.
       ``(c) Timing of Disbursements.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     State disbursement unit shall distribute all amounts payable 
     under section 457(a) within 2 business days after receipt 
     from the employer or other source of periodic income, if 
     sufficient information identifying the payee is provided.
       ``(2) Permissive retention of arrearages.--The State 
     disbursement unit may delay the distribution of collections 
     toward arrearages until the resolution of any timely appeal 
     with respect to such arrearages.
       ``(d) Business Day Defined.--As used in this section, the 
     term `business day' means a day on which State offices are 
     open for regular business.''.
       (c) Use of Automated System.--Section 454A, as added by 
     section 445(a)(2) of this Act and as amended by section 411 
     of this Act, is amended by adding at the end the following 
     new subsection:
       ``(g) Collection and Distribution of Support Payments.--
       ``(1) In general.--The State shall use the automated system 
     required by this section, to the maximum extent feasible, to 
     assist and facilitate the collection and disbursement of 
     support payments through the State disbursement unit operated 
     under section 454B, through the performance of functions, 
     including, at a minimum--
       ``(A) transmission of orders and notices to employers (and 
     other debtors) for the withholding of wages and other 
     income--
       ``(i) within 2 business days after receipt from a court, 
     another State, an employer, the Federal Parent Locator 
     Service, or another source recognized by the State of notice 
     of, and the income source subject to, such withholding; and
       ``(ii) using uniform formats prescribed by the Secretary;
       ``(B) ongoing monitoring to promptly identify failures to 
     make timely payment of support; and
       ``(C) automatic use of enforcement procedures (including 
     procedures authorized pursuant to section 466(c)) where 
     payments are not timely made.
       ``(2) Business day defined.--As used in paragraph (1), the 
     term `business day' means a day on which State offices are 
     open for regular business.''.
       (d) Effective Date.--The amendments made by this section 
     shall become effective on October 1, 1998.

     SEC. 413. STATE DIRECTORY OF NEW HIRES.

       (a) State Plan Requirement.--Section 454 (42 U.S.C. 654), 
     as amended by sections 404(a) and 412(a) of this Act, is 
     amended--
       (1) by striking ``and'' at the end of paragraph (25);
       (2) by striking the period at the end of paragraph (26) and 
     inserting ``; and''; and
       (3) by adding after paragraph (26) the following new 
     paragraph:
       ``(27) provide that, on and after October 1, 1997, the 
     State will operate a State Directory of New Hires in 
     accordance with section 453A.''.
       (b) State Directory of New Hires.--Part D of title IV (42 
     U.S.C. 651-669) is amended by inserting after section 453 the 
     following new section:

     ``SEC. 453A. STATE DIRECTORY OF NEW HIRES.

       ``(a) Establishment.--
       ``(1) In general.--Not later than October 1, 1997, each 
     State shall establish an automated directory (to be known as 
     the `State Directory of New Hires') which shall contain 
     information supplied in accordance with subsection (b) by 
     employers on each newly hired employee.
       ``(2) Definitions.--As used in this section:
       ``(A) Employee.--The term `employee'--
       ``(i) means an individual who is an employee within the 
     meaning of chapter 24 of the Internal Revenue Code of 1986; 
     and
       ``(ii) does not include an employee of a Federal or State 
     agency performing intelligence or counterintelligence 
     functions, if the head of such agency has determined that 
     reporting pursuant to paragraph (1) with respect to the 
     employee could endanger the safety of the employee or 
     compromise an ongoing investigation or intelligence mission.
       ``(B) Employer.--The term `employer' includes--
       ``(i) any governmental entity, and
       ``(ii) any labor organization.
       ``(C) Labor organization.--The term `labor organization' 
     shall have the meaning given such term in section 2(5) of the 
     National Labor Relations Act, and includes any entity (also 
     known as a `hiring hall') which is used by the organization 
     and an employer to carry out requirements described in 
     section 8(f)(3) of such Act of an agreement between the 
     organization and the employer.
       ``(b) Employer Information.--
       ``(1) Reporting requirement.--Each employer shall furnish 
     to the Directory of New Hires of the State in which a newly 
     hired employee works, a report that contains the name, 
     address, and social security number of the employee, and the 
     name of, and identifying number assigned under section 6109 
     of the Internal Revenue Code of 1986 to, the employer.
       ``(2) Timing of report.--The report required by paragraph 
     (1) with respect to an employee shall be made not later than 
     the later of--
       ``(A) 15 days after the date the employer hires the 
     employee; or
       ``(B) in the case of an employer that reports by magnetic 
     or electronic means, the 1st business day of the week 
     following the date on which the employee 1st receives wages 
     or other compensation from the employer.
       ``(c) Reporting Format and Method.--Each report required by 
     subsection (b) shall be made on a W-4 form or the equivalent, 
     and may be transmitted by 1st class mail, magnetically, or 
     electronically.
       ``(d) Civil Money Penalties on Noncomplying Employers.--
       ``(1) In general.--An employer that fails to comply with 
     subsection (b) with respect to an employee shall be subject 
     to a civil money penalty of--
       ``(A) $25; or
       ``(B) $500 if, under State law, the failure is the result 
     of a conspiracy between the employer and the employee to not 
     supply the required report or to supply a false or incomplete 
     report.
       ``(2) Applicability of section 1128.--Section 1128 (other 
     than subsections (a) and (b) of such section) shall apply to 
     a civil money penalty under paragraph (1) of this subsection 
     in the same manner as such section applies to a civil money 
     penalty or proceeding under section 1128A(a).
       ``(e) Entry of Employer Information.--Information shall be 
     entered into the data base maintained by the State Directory 
     of New Hires within 5 business days of receipt from an 
     employer pursuant to subsection (b).
       ``(f) Information Comparisons.--
       ``(1) In general.--Not later than October 1, 1998, an 
     agency designated by the State shall, directly or by 
     contract, conduct automated comparisons of the social 
     security numbers reported by employers pursuant to subsection 
     (b) and the social security numbers appearing in the records 
     of the State case registry for cases being enforced under the 
     State plan.
       ``(2) Notice of match.--When an information comparison 
     conducted under paragraph (1) reveals a match with respect to 
     the social security number of an individual required to 
     provide support under a support order, the State Directory of 
     New Hires shall provide the agency administering the State 
     plan approved under this part of the appropriate State with 
     the name, address, and social security number of the employee 
     to whom the social security number is assigned, and the name 
     of, and identifying number assigned under section 6109 of the 
     Internal Revenue Code of 1986 to, the employer.
       ``(g) Transmission of Information.--
       ``(1) Transmission of wage withholding notices to 
     employers.--Within 2 business days after the date information 
     regarding a newly hired employee is entered into the State 
     Directory of New Hires, the State agency enforcing the 
     employee's child support obligation shall transmit a notice 
     to the employer of the employee directing the employer to 
     withhold from the wages of the employee an amount equal to 
     the monthly (or other periodic) child support obligation of 
     the employee, unless the employee's wages are not subject to 
     withholding pursuant to section 466(b)(3).
       ``(2) Transmissions to the national directory of new 
     hires.--
       ``(A) New hire information.--Within 2 business days after 
     the date information regarding a newly hired employee is 
     entered into the State Directory of New Hires, the State 
     Directory of New Hires shall furnish the information to the 
     National Directory of New Hires.
       ``(B) Wage and unemployment compensation information.--The 
     State Directory of New Hires shall, on a quarterly basis, 
     furnish to the National Directory of New Hires extracts of 
     the reports required under section 303(a)(6) to be made to 
     the Secretary of Labor concerning the wages and unemployment 
     compensation paid to individuals, by such dates, in such 
     format, and containing such information as the Secretary of 
     Health and Human Services shall specify in regulations.
       ``(3) Business day defined.--As used in this subsection, 
     the term `business day' means a day on which State offices 
     are open for regular business.
       ``(h) Other Uses of New Hire Information.--
       ``(1) Location of child support obligors.--The agency 
     administering the State plan approved under this part shall 
     use information received pursuant to subsection (f)(2) to 
     locate individuals for purposes of establishing paternity and 
     establishing, modifying, and enforcing child support 
     obligations.
       ``(2) Verification of eligibility for certain programs.--A 
     State agency responsible for administering a program 
     specified in section 1137(b) shall have access to information 
     reported by employers pursuant to subsection (b) of this 
     section for purposes of verifying eligibility for the 
     program.
       ``(3) Administration of employment security and workers' 
     compensation.--State agencies operating employment security 
     and workers' compensation programs shall have access to 
     information reported by employers pursuant to subsection (b) 
     for the purposes of administering such programs.''.
     SEC. 414. AMENDMENTS CONCERNING INCOME WITHHOLDING.

       (a) Mandatory Income Withholding.--
       (1) In general.--Section 466(a)(1) (42 U.S.C. 666(a)(1)) is 
     amended to read as follows:
       ``(1)(A) Procedures described in subsection (b) for the 
     withholding from income of amounts payable as support in 
     cases subject to enforcement under the State plan.
       ``(B) Procedures under which the wages of a person with a 
     support obligation imposed by a support order issued (or 
     modified) in the State before October 1, 1996, if not 
     otherwise subject to withholding under subsection (b), shall 
     become subject to withholding as provided in subsection (b) 
     if arrearages occur, without the need for a judicial or 
     administrative hearing.''.
       (2) Conforming amendments.--
       (A) Section 466(a)(8)(B)(iii) (42 U.S.C. 666(a)(8)(B)(iii)) 
     is amended--

[[Page S11591]]

       (i) by striking ``(5),''; and
       (ii) by inserting ``, and, at the option of the State, the 
     requirements of subsection (b)(5)'' before the period.
       (B) Section 466(b) (42 U.S.C. 666(b)) is amended in the 
     matter preceding paragraph (1), by striking ``subsection 
     (a)(1)'' and inserting ``subsection (a)(1)(A)''.
       (C) Section 466(b)(4) (42 U.S.C. 666(b)(4)) is amended to 
     read as follows:
       ``(4)(A) Such withholding must be carried out in full 
     compliance with all procedural due process requirements of 
     the State, and the State must send notice to each absent 
     parent to whom paragraph (1) applies--
       ``(i) that the withholding has commenced; and
       ``(ii) of the procedures to follow if the absent parent 
     desires to contest such withholding on the grounds that the 
     withholding or the amount withheld is improper due to a 
     mistake of fact.
       ``(B) The notice under subparagraph (A) shall include the 
     information provided to the employer under paragraph 
     (6)(A).''.
       (D) Section 466(b)(5) (42 U.S.C. 666(b)(5)) is amended by 
     striking all that follows ``administered by'' and inserting 
     ``the State through the State disbursement unit established 
     pursuant to section 454B, in accordance with the requirements 
     of section 454B.''.
       (E) Section 466(b)(6)(A) (42 U.S.C. 666(b)(6)(A)) is 
     amended--
       (i) in clause (i), by striking ``to the appropriate 
     agency'' and all that follows and inserting ``to the State 
     disbursement unit within 2 business days after the date the 
     amount would (but for this subsection) have been paid or 
     credited to the employee, for distribution in accordance with 
     this part.'';
       (ii) in clause (ii), by inserting ``be in a standard format 
     prescribed by the Secretary, and'' after ``shall''; and
       (iii) by adding at the end the following new clause:
       ``(iii) As used in this subparagraph, the term `business 
     day' means a day on which State offices are open for regular 
     business.''.
       (F) Section 466(b)(6)(D) (42 U.S.C. 666(b)(6)(D)) is 
     amended by striking ``any employer'' and all that follows and 
     inserting ``any employer who--
       ``(i) discharges from employment, refuses to employ, or 
     takes disciplinary action against any absent parent subject 
     to wage withholding required by this subsection because of 
     the existence of such withholding and the obligations or 
     additional obligations which it imposes upon the employer; or
       ``(ii) fails to withhold support from wages, or to pay such 
     amounts to the State disbursement unit in accordance with 
     this subsection.''.
       (G) Section 466(b) (42 U.S.C. 666(b)) is amended by adding 
     at the end the following new paragraph:
       ``(11) Procedures under which the agency administering the 
     State plan approved under this part may execute a withholding 
     order through electronic means and without advance notice to 
     the obligor.''.
       (b) Conforming Amendment.--Section 466(c) (42 U.S.C. 
     666(c)) is repealed.

     SEC. 415. LOCATOR INFORMATION FROM INTERSTATE NETWORKS.

       Section 466(a) (42 U.S.C. 666(a)) is amended by adding at 
     the end the following new paragraph:
       ``(12) Procedures to ensure that all Federal and State 
     agencies conducting activities under this part have access to 
     any system used by the State to locate an individual for 
     purposes relating to motor vehicles or law enforcement.''.
     SEC. 416. EXPANSION OF THE FEDERAL PARENT LOCATOR SERVICE.

       (a) Expanded Authority To Locate Individuals and Assets.--
     Section 453 (42 U.S.C. 653) is amended--
       (1) in subsection (a), by striking all that follows 
     ``subsection (c))'' and inserting ``, for the purpose of 
     establishing parentage, establishing, setting the amount of, 
     modifying, or enforcing child support obligations, or 
     enforcing child visitation orders--
       ``(1) information on, or facilitating the discovery of, the 
     location of any individual--
       ``(A) who is under an obligation to pay child support or 
     provide child visitation rights;
       ``(B) against whom such an obligation is sought;
       ``(C) to whom such an obligation is owed,

     including the individual's social security number (or 
     numbers), most recent address, and the name, address, and 
     employer identification number of the individual's employer;
       ``(2) information on the individual's wages (or other 
     income) from, and benefits of, employment (including rights 
     to or enrollment in group health care coverage); and
       ``(3) information on the type, status, location, and amount 
     of any assets of, or debts owed by or to, any such 
     individual.''; and
       (2) in subsection (b), in the matter preceding paragraph 
     (1), by striking ``social security'' and all that follows 
     through ``absent parent'' and inserting ``information 
     described in subsection (a)''.
       (b) Authorized Person for Information Regarding Visitation 
     Rights.--Section 453(c) (42 U.S.C. 653(c)) is amended--
       (1) in paragraph (1), by striking ``support'' and inserting 
     ``support or to seek to enforce orders providing child 
     visitation rights'';
       (2) in paragraph (2), by striking ``, or any agent of such 
     court; and'' and inserting ``or to issue an order against a 
     resident parent for visitation rights, or any agent of such 
     court;'';
       (3) by striking the period at the end of paragraph (3) and 
     inserting ``; and''; and
       (4) by adding at the end the following new paragraph:
       ``(4) the absent parent, only with regard to a court order 
     against a resident parent for child visitation rights.''.
       (c) Reimbursement for Information From Federal Agencies.--
     Section 453(e)(2) (42 U.S.C. 653(e)(2)) is amended in the 4th 
     sentence by inserting ``in an amount which the Secretary 
     determines to be reasonable payment for the information 
     exchange (which amount shall not include payment for the 
     costs of obtaining, compiling, or maintaining the 
     information)'' before the period.
       (d) Reimbursement for Reports by State Agencies.--Section 
     453 (42 U.S.C. 653) is amended by adding at the end the 
     following new subsection:
       ``(g) The Secretary may reimburse Federal and State 
     agencies for the costs incurred by such entities in 
     furnishing information requested by the Secretary under this 
     section in an amount which the Secretary determines to be 
     reasonable payment for the information exchange (which amount 
     shall not include payment for the costs of obtaining, 
     compiling, or maintaining the information).''.
       (e) Technical Amendments.--
       (1) Sections 452(a)(9), 453(a), 453(b), 463(a), 463(e), and 
     463(f) (42 U.S.C. 652(a)(9), 653(a), 653(b), 663(a), 663(e), 
     and 663(f)) are each amended by inserting ``Federal'' before 
     ``Parent'' each place such term appears.
       (2) Section 453 (42 U.S.C. 653) is amended in the heading 
     by adding ``federal'' before ``parent''.
       (f) New Components.--Section 453 (42 U.S.C. 653), as 
     amended by subsection (d) of this section, is amended by 
     adding at the end the following new subsection:
       ``(h)(1) Not later than October 1, 1998, in order to assist 
     States in administering programs under State plans approved 
     under this part and programs funded under part A, and for the 
     other purposes specified in this section, the Secretary shall 
     establish and maintain in the Federal Parent Locator Service 
     an automated registry (which shall be known as the `Federal 
     Case Registry of Child Support Orders'), which shall contain 
     abstracts of support orders and other information described 
     in paragraph (2) with respect to each case in each State case 
     registry maintained pursuant to section 454A(e), as furnished 
     (and regularly updated), pursuant to section 454A(f), by 
     State agencies administering programs under this part.
       ``(2) The information referred to in paragraph (1) with 
     respect to a case shall be such information as the Secretary 
     may specify in regulations (including the names, social 
     security numbers or other uniform identification numbers, and 
     State case identification numbers) to identify the 
     individuals who owe or are owed support (or with respect to 
     or on behalf of whom support obligations are sought to be 
     established), and the State or States which have the case.
       ``(i)(1) In order to assist States in administering 
     programs under State plans approved under this part and 
     programs funded under part A, and for the other purposes 
     specified in this section, the Secretary shall, not later 
     than October 1, 1996, establish and maintain in the Federal 
     Parent Locator Service an automated directory to be known as 
     the National Directory of New Hires, which shall contain the 
     information supplied pursuant to section 453A(g)(2).
       ``(2) Information shall be entered into the data base 
     maintained by the National Directory of New Hires within 2 
     business days of receipt pursuant to section 453A(g)(2).
       ``(3) The Secretary of the Treasury shall have access to 
     the information in the National Directory of New Hires for 
     purposes of administering section 32 of the Internal Revenue 
     Code of 1986, or the advance payment of the earned income tax 
     credit under section 3507 of such Code, and verifying a claim 
     with respect to employment in a tax return.
       ``(j)(1)(A) The Secretary shall transmit information on 
     individuals and employers maintained under this section to 
     the Social Security Administration to the extent necessary 
     for verification in accordance with subparagraph (B).
       ``(B) The Social Security Administration shall verify the 
     accuracy of, correct, or supply to the extent possible, and 
     report to the Secretary, the following information supplied 
     by the Secretary pursuant to subparagraph (A):
       ``(i) The name, social security number, and birth date of 
     each such individual.
       ``(ii) The employer identification number of each such 
     employer.
       ``(2) For the purpose of locating individuals in a 
     paternity establishment case or a case involving the 
     establishment, modification, or enforcement of a support 
     order, the Secretary shall--
       ``(A) compare information in the National Directory of New 
     Hires against information in the support case abstracts in 
     the Federal Case Registry of Child Support Orders not less 
     often than every 2 business days; and
       ``(B) within 2 such days after such a comparison reveals a 
     match with respect to an individual, report the information 
     to the State agency responsible for the case.
       ``(3) To the extent and with the frequency that the 
     Secretary determines to be effective in assisting States to 
     carry out their responsibilities under programs operated 
     under this part and programs funded under part A, the 
     Secretary shall--
       ``(A) compare the information in each component of the 
     Federal Parent Locator Service maintained under this section 
     against the information in each other such component (other 
     than the comparison required by paragraph (2)), and report 
     instances in which such a comparison reveals a match with 
     respect to an individual to State agencies operating such 
     programs; and
       ``(B) disclose information in such registries to such State 
     agencies.

[[Page S11592]]

       ``(4) The National Directory of New Hires shall provide the 
     Commissioner of Social Security with all information in the 
     National Directory, which shall be used to determine the 
     accuracy of payments under the supplemental security income 
     program under title XVI and in connection with benefits under 
     title II.
       ``(5) The Secretary may provide access to information 
     reported by employers pursuant to section 453A(b) for 
     research purposes found by the Secretary to be likely to 
     contribute to achieving the purposes of part A or this part, 
     but without personal identifiers.
       ``(k)(1) The Secretary shall reimburse the Commissioner of 
     Social Security, at a rate negotiated between the Secretary 
     and the Commissioner, for the costs incurred by the 
     Commissioner in performing the verification services 
     described in subsection (j).
       ``(2) The Secretary shall reimburse costs incurred by State 
     directories of new hires in furnishing information as 
     required by subsection (j)(3), at rates which the Secretary 
     determines to be reasonable (which rates shall not include 
     payment for the costs of obtaining, compiling, or maintaining 
     such information).
       ``(3) A State or Federal agency that receives information 
     from the Secretary pursuant to this section shall reimburse 
     the Secretary for costs incurred by the Secretary in 
     furnishing the information, at rates which the Secretary 
     determines to be reasonable (which rates shall include 
     payment for the costs of obtaining, verifying, maintaining, 
     and comparing the information).
       ``(l) Information in the Federal Parent Locator Service, 
     and information resulting from comparisons using such 
     information, shall not be used or disclosed except as 
     expressly provided in this section, subject to section 6103 
     of the Internal Revenue Code of 1986.
       ``(m) The Secretary shall establish and implement 
     safeguards with respect to the entities established under 
     this section designed to--
       ``(1) ensure the accuracy and completeness of information 
     in the Federal Parent Locator Service; and
       ``(2) restrict access to confidential information in the 
     Federal Parent Locator Service to authorized persons, and 
     restrict use of such information to authorized purposes.''.
       (f) Quarterly Wage Reporting.--Section 1137(a)(3) (42 
     U.S.C. 1320b-7(a)(3)) is amended--
       (1) by inserting ``(including governmental entities)'' 
     after ``employers''; and
       (2) by inserting ``, and except that no report shall be 
     filed with respect to an employee of a Federal or State 
     agency performing intelligence or counterintelligence 
     functions, if the head of such agency has determined that 
     filing such a report could endanger the safety of the 
     employee or compromise an ongoing investigation or 
     intelligence mission'' after ``paragraph (2)''.
       (g) Conforming Amendments.--
       (1) To part d of title iv of the social security act.--
     Section 454(8)(B) (42 U.S.C. 654(8)(B)) is amended to read as 
     follows:
       ``(B) the Federal Parent Locator Service established under 
     section 453;''.
       (2) To federal unemployment tax act.--Section 3304(a)(16) 
     of the Internal Revenue Code of 1986 is amended--
       (A) by striking ``Secretary of Health, Education, and 
     Welfare'' each place such term appears and inserting 
     ``Secretary of Health and Human Services'';
       (B) in subparagraph (B), by striking ``such information'' 
     and all that follows and inserting ``information furnished 
     under subparagraph (A) or (B) is used only for the purposes 
     authorized under such subparagraph;'';
       (C) by striking ``and'' at the end of subparagraph (A);
       (D) by redesignating subparagraph (B) as subparagraph (C); 
     and
       (E) by inserting after subparagraph (A) the following new 
     subparagraph:
       ``(B) wage and unemployment compensation information 
     contained in the records of such agency shall be furnished to 
     the Secretary of Health and Human Services (in accordance 
     with regulations promulgated by such Secretary) as necessary 
     for the purposes of the National Directory of New Hires 
     established under section 453(i) of the Social Security Act, 
     and''.
       (3) To state grant program under title iii of the social 
     security act.--Section 303(a) (42 U.S.C. 503(a)) is amended--
       (A) by striking ``and'' at the end of paragraph (8);
       (B) by striking ``and'' at the end of paragraph (9);
       (C) by striking the period at the end of paragraph (10) and 
     inserting ``; and''; and
       (D) by adding after paragraph (10) the following new 
     paragraph:
       ``(11) The making of quarterly electronic reports, at such 
     dates, in such format, and containing such information, as 
     required by the Secretary of Health and Human Services under 
     section 453(i)(3), and compliance with such provisions as 
     such Secretary may find necessary to ensure the correctness 
     and verification of such reports.''.

     SEC. 417. COLLECTION AND USE OF SOCIAL SECURITY NUMBERS FOR 
                   USE IN CHILD SUPPORT ENFORCEMENT.

       (a) State Law Requirement.--Section 466(a) (42 U.S.C. 
     666(a)), as amended by section 415 of this Act, is amended by 
     adding at the end the following new paragraph:
       ``(13) Procedures requiring that the social security number 
     of--
       ``(A) any applicant for a professional license, commercial 
     driver's license, occupational license, or marriage license 
     be recorded on the application;
       ``(B) any individual who is subject to a divorce decree, 
     support order, or paternity determination or acknowledgment 
     be placed in the records relating to the matter; and
       ``(C) any individual who has died be placed in the records 
     relating to the death and be recorded on the death 
     certificate.''.
       (b) Conforming Amendments.--Section 205(c)(2)(C) (42 U.S.C. 
     405(c)(2)(C)), as amended by section 321(a)(9) of the Social 
     Security Independence and Program Improvements Act of 1994, 
     is amended--
       (1) in clause (i), by striking ``may require'' and 
     inserting ``shall require'';
       (2) in clause (ii), by inserting after the 1st sentence the 
     following: ``In the administration of any law involving the 
     issuance of a marriage certificate or license, each State 
     shall require each party named in the certificate or license 
     to furnish to the State (or political subdivision thereof), 
     or any State agency having administrative responsibility for 
     the law involved, the social security number of the party.'';
       (3) in clause (vi), by striking ``may'' and inserting 
     ``shall''; and
       (4) by adding at the end the following new clauses:
       ``(x) An agency of a State (or a political subdivision 
     thereof) charged with the administration of any law 
     concerning the issuance or renewal of a license, certificate, 
     permit, or other authorization to engage in a profession, an 
     occupation, or a commercial activity shall require all 
     applicants for issuance or renewal of the license, 
     certificate, permit, or other authorization to provide the 
     applicant's social security number to the agency for the 
     purpose of administering such laws, and for the purpose of 
     responding to requests for information from an agency 
     operating pursuant to part D of title IV.
       ``(xi) All divorce decrees, support orders, and paternity 
     determinations issued, and all paternity acknowledgments 
     made, in each State shall include the social security number 
     of each party to the decree, order, determination, or 
     acknowledgement in the records relating to the matter.''.
         Subtitle C--Streamlining and Uniformity of Procedures

     SEC. 421. ADOPTION OF UNIFORM STATE LAWS.

       Section 466 (42 U.S.C. 666) is amended by adding at the end 
     the following new subsection:
       ``(f)(1) In order to satisfy section 454(20)(A) on or after 
     January 1, 1997, each State must have in effect the Uniform 
     Interstate Family Support Act, as approved by the National 
     Conference of Commissioners on Uniform State Laws in August 
     1992 (with the modifications and additions specified in this 
     subsection), and the procedures required to implement such 
     Act.
       ``(2) The State law enacted pursuant to paragraph (1) may 
     be applied to any case involving an order which is 
     established or modified in a State and which is sought to be 
     modified or enforced in another State.
       ``(3) The State law enacted pursuant to paragraph (1) of 
     this subsection shall contain the following provision in lieu 
     of section 611(a)(1) of the Uniform Interstate Family Support 
     Act:
       ```(1) the following requirements are met:
       ```(i) the child, the individual obligee, and the obligor--
       ```(I) do not reside in the issuing State; and
       ```(II) either reside in this State or are subject to the 
     jurisdiction of this State pursuant to section 201; and
       ```(ii) in any case where another State is exercising or 
     seeks to exercise jurisdiction to modify the order, the 
     conditions of section 204 are met to the same extent as 
     required for proceedings to establish orders; or'.
       ``(4) The State law enacted pursuant to paragraph (1) shall 
     provide that, in any proceeding subject to the law, process 
     may be served (and proved) upon persons in the State by any 
     means acceptable in any State which is the initiating or 
     responding State in the proceeding.''.

     SEC. 422. IMPROVEMENTS TO FULL FAITH AND CREDIT FOR CHILD 
                   SUPPORT ORDERS.

       Section 1738B of title 28, United States Code, is amended--
       (1) in subsection (a)(2), by striking ``subsection (e)'' 
     and inserting ``subsections (e), (f), and (i)'';
       (2) in subsection (b), by inserting after the 2nd 
     undesignated paragraph the following:
       ```child's home State' means the State in which a child 
     lived with a parent or a person acting as parent for at least 
     6 consecutive months immediately preceding the time of filing 
     of a petition or comparable pleading for support and, if a 
     child is less than 6 months old, the State in which the child 
     lived from birth with any of them. A period of temporary 
     absence of any of them is counted as part of the 6-month 
     period.'';
       (3) in subsection (c), by inserting ``by a court of a 
     State'' before ``is made'';
       (4) in subsection (c)(1), by inserting ``and subsections 
     (e), (f), and (g)'' after ``located'';
       (5) in subsection (d)--
       (A) by inserting ``individual'' before ``contestant''; and
       (B) by striking ``subsection (e)'' and inserting 
     ``subsections (e) and (f)'';
       (6) in subsection (e), by striking ``make a modification of 
     a child support order with respect to a child that is made'' 
     and inserting ``modify a child support order issued'';
       (7) in subsection (e)(1), by inserting ``pursuant to 
     subsection (i)'' before the semicolon;
       (8) in subsection (e)(2)--
       (A) by inserting ``individual'' before ``contestant'' each 
     place such term appears; and
       (B) by striking ``to that court's making the modification 
     and assuming'' and inserting ``with the State of continuing, 
     exclusive jurisdiction for a court of another State to modify 
     the order and assume'';
       (9) by redesignating subsections (f) and (g) as subsections 
     (g) and (h), respectively;
       (10) by inserting after subsection (e) the following new 
     subsection:
       ``(f) Recognition of Child Support Orders.--If 1 or more 
     child support orders have been issued in this or another 
     State with regard to an obligor and a child, a court shall 
     apply the following rules in determining which order to 
     recognize for purposes of continuing, exclusive jurisdiction 
     and enforcement:

[[Page S11593]]

       ``(1) If only 1 court has issued a child support order, the 
     order of that court must be recognized.
       ``(2) If 2 or more courts have issued child support orders 
     for the same obligor and child, and only 1 of the courts 
     would have continuing, exclusive jurisdiction under this 
     section, the order of that court must be recognized.
       ``(3) If 2 or more courts have issued child support orders 
     for the same obligor and child, and more than 1 of the courts 
     would have continuing, exclusive jurisdiction under this 
     section, an order issued by a court in the current home State 
     of the child must be recognized, but if an order has not been 
     issued in the current home State of the child, the order most 
     recently issued must be recognized.
       ``(4) If 2 or more courts have issued child support orders 
     for the same obligor and child, and none of the courts would 
     have continuing, exclusive jurisdiction under this section, a 
     court may issue a child support order, which must be 
     recognized.
       ``(5) The court that has issued an order recognized under 
     this subsection is the court having continuing, exclusive 
     jurisdiction.'';
       (11) in subsection (g) (as so redesignated)--
       (A) by striking ``Prior'' and inserting ``Modified''; and
       (B) by striking ``subsection (e)'' and inserting 
     ``subsections (e) and (f)'';
       (12) in subsection (h) (as so redesignated)--
       (A) in paragraph (2), by inserting ``including the duration 
     of current payments and other obligations of support'' before 
     the comma; and
       (B) in paragraph (3), by inserting ``arrears under'' after 
     ``enforce''; and
       (13) by adding at the end the following new subsection:
       ``(i) Registration for Modification.--If there is no 
     individual contestant or child residing in the issuing State, 
     the party or support enforcement agency seeking to modify, or 
     to modify and enforce, a child support order issued in 
     another State shall register that order in a State with 
     jurisdiction over the nonmovant for the purpose of 
     modification.''.

     SEC. 423. ADMINISTRATIVE ENFORCEMENT IN INTERSTATE CASES.

       Section 466(a) (42 U.S.C. 666(a)), as amended by sections 
     415 and 417(a) of this Act, is amended by adding at the end 
     the following new paragraph:
       ``(14) Procedures under which--
       ``(A)(i) the State shall respond within 5 business days to 
     a request made by another State to enforce a support order; 
     and
       ``(ii) the term `business day' means a day on which State 
     offices are open for regular business;
       ``(B) the State may, by electronic or other means, transmit 
     to another State a request for assistance in a case involving 
     the enforcement of a support order, which request--
       ``(i) shall include such information as will enable the 
     State to which the request is transmitted to compare the 
     information about the case to the information in the data 
     bases of the State; and
       ``(ii) shall constitute a certification by the requesting 
     State--

       ``(I) of the amount of support under the order the payment 
     of which is in arrears; and
       ``(II) that the requesting State has complied with all 
     procedural due process requirements applicable to the case;

       ``(C) if the State provides assistance to another State 
     pursuant to this paragraph with respect to a case, neither 
     State shall consider the case to be transferred to the 
     caseload of such other State; and
       ``(D) the State shall maintain records of--
       ``(i) the number of such requests for assistance received 
     by the State;
       ``(ii) the number of cases for which the State collected 
     support in response to such a request; and
       ``(iii) the amount of such collected support.''.

     SEC. 424. USE OF FORMS IN INTERSTATE ENFORCEMENT.

       (a) Promulgation.--Section 452(a) (42 U.S.C. 652(a)) is 
     amended--
       (1) by striking ``and'' at the end of paragraph (9);
       (2) by striking the period at the end of paragraph (10) and 
     inserting ``; and''; and
       (3) by adding at the end the following new paragraph:
       ``(11) not later than June 30, 1996, promulgate forms to be 
     used by States in interstate cases for--
       ``(A) collection of child support through income 
     withholding;
       ``(B) imposition of liens; and
       ``(C) administrative subpoenas.''.
       (b) Use by States.--Section 454(9) (42 U.S.C. 654(9)) is 
     amended--
       (1) by striking ``and'' at the end of subparagraph (C);
       (2) by inserting ``and'' at the end of subparagraph (D); 
     and
       (3) by adding at the end the following new subparagraph:
       ``(E) no later than October 1, 1996, in using the forms 
     promulgated pursuant to section 452(a)(11) for income 
     withholding, imposition of liens, and issuance of 
     administrative subpoenas in interstate child support 
     cases;''.

     SEC. 425. STATE LAWS PROVIDING EXPEDITED PROCEDURES.

       (a) State Law Requirements.--Section 466 (42 U.S.C. 666), 
     as amended by section 414 of this Act, is amended--
       (1) in subsection (a)(2), by striking the 1st sentence and 
     inserting the following: ``Expedited administrative and 
     judicial procedures (including the procedures specified in 
     subsection (c)) for establishing paternity and for 
     establishing, modifying, and enforcing support 
     obligations.''; and
       (2) by inserting after subsection (b) the following new 
     subsection:
       ``(c) The procedures specified in this subsection are the 
     following:
       ``(1) Procedures which give the State agency the authority 
     to take the following actions relating to establishment or 
     enforcement of support orders, without the necessity of 
     obtaining an order from any other judicial or administrative 
     tribunal, and to recognize and enforce the authority of State 
     agencies of other States) to take the following actions:
       ``(A) To order genetic testing for the purpose of paternity 
     establishment as provided in section 466(a)(5).
       ``(B) To enter a default order, upon a showing of service 
     of process and any additional showing required by State law--
       ``(i) establishing paternity, in the case of a putative 
     father who refuses to submit to genetic testing; and
       ``(ii) establishing or modifying a support obligation, in 
     the case of a parent (or other obligor or obligee) who fails 
     to respond to notice to appear at a proceeding for such 
     purpose.
       ``(C) To subpoena any financial or other information needed 
     to establish, modify, or enforce a support order, and to 
     impose penalties for failure to respond to such a subpoena.
       ``(D) To require all entities in the State (including for-
     profit, nonprofit, and governmental employers) to provide 
     promptly, in response to a request by the State agency of 
     that or any other State administering a program under this 
     part, information on the employment, compensation, and 
     benefits of any individual employed by such entity as an 
     employee or contractor, and to sanction failure to respond to 
     any such request.
       ``(E) To obtain access, subject to safeguards on privacy 
     and information security, to the following records (including 
     automated access, in the case of records maintained in 
     automated data bases):
       ``(i) Records of other State and local government agencies, 
     including--

       ``(I) vital statistics (including records of marriage, 
     birth, and divorce);
       ``(II) State and local tax and revenue records (including 
     information on residence address, employer, income and 
     assets);
       ``(III) records concerning real and titled personal 
     property;
       ``(IV) records of occupational and professional licenses, 
     and records concerning the ownership and control of 
     corporations, partnerships, and other business entities;
       ``(V) employment security records;
       ``(VI) records of agencies administering public assistance 
     programs;
       ``(VII) records of the motor vehicle department; and
       ``(VIII) corrections records.

       ``(ii) Certain records held by private entities, 
     including--

       ``(I) customer records of public utilities and cable 
     television companies; and
       ``(II) information (including information on assets and 
     liabilities) on individuals who owe or are owed support (or 
     against or with respect to whom a support obligation is 
     sought) held by financial institutions (subject to 
     limitations on liability of such entities arising from 
     affording such access).

       ``(F) In cases where support is subject to an assignment in 
     order to comply with a requirement imposed pursuant to part A 
     or section 1912, or to a requirement to pay through the State 
     disbursement unit established pursuant to section 454B, upon 
     providing notice to obligor and obligee, to direct the 
     obligor or other payor to change the payee to the appropriate 
     government entity.
       ``(G) To order income withholding in accordance with 
     subsections (a)(1) and (b) of section 466.
       ``(H) In cases in which there is a support arrearage, to 
     secure assets to satisfy the arrearage by--
       ``(i) intercepting or seizing periodic or lump-sum payments 
     from--

       ``(I) a State or local agency, including unemployment 
     compensation, workers' compensation, and other benefits; and
       ``(II) judgments, settlements, and lotteries;

       ``(ii) attaching and seizing assets of the obligor held in 
     financial institutions;
       ``(iii) attaching public and private retirement funds; and
       ``(iv) imposing liens in accordance with subsection (a)(4) 
     and, in appropriate cases, to force sale of property and 
     distribution of proceeds.
       ``(I) For the purpose of securing overdue support, to 
     increase the amount of monthly support payments to include 
     amounts for arrearages, subject to such conditions or 
     limitations as the State may provide.

     Such procedures shall be subject to due process safeguards, 
     including (as appropriate) requirements for notice, 
     opportunity to contest the action, and opportunity for an 
     appeal on the record to an independent administrative or 
     judicial tribunal.
       ``(2) The expedited procedures required under subsection 
     (a)(2) shall include the following rules and authority, 
     applicable with respect to all proceedings to establish 
     paternity or to establish, modify, or enforce support orders:
       ``(A) Procedures under which--
       ``(i) each party to any paternity or child support 
     proceeding is required (subject to privacy safeguards) to 
     file with the tribunal and the State case registry upon entry 
     of an order, and to update as appropriate, information on 
     location and identity of the party, including social security 
     number, residential and mailing addresses, telephone number, 
     driver's license number, and name, address, and name and 
     telephone number of employer; and
       ``(ii) in any subsequent child support enforcement action 
     between the parties, upon sufficient showing that diligent 
     effort has been made to ascertain the location of such a 
     party, the tribunal may deem State due process requirements 
     for notice and service of process to be met with respect to 
     the party, upon delivery of written notice to the most recent 
     residential or employer 

[[Page S11594]]
     address filed with the tribunal pursuant to clause (i).
       ``(B) Procedures under which--
       ``(i) the State agency and any administrative or judicial 
     tribunal with authority to hear child support and paternity 
     cases exerts statewide jurisdiction over the parties; and
       ``(ii) in a State in which orders are issued by courts or 
     administrative tribunals, a case may be transferred between 
     local jurisdictions in the State without need for any 
     additional filing by the petitioner, or service of process 
     upon the respondent, to retain jurisdiction over the 
     parties.''.
       (b) Automation of State Agency Functions.--Section 454A, as 
     added by section 445(a)(2) of this Act and as amended by 
     sections 411 and 412(c) of this Act, is amended by adding at 
     the end the following new subsection:
       ``(h) Expedited Administrative Procedures.--The automated 
     system required by this section shall be used, to the maximum 
     extent feasible, to implement the expedited administrative 
     procedures required by section 466(c).''.
                  Subtitle D--Paternity Establishment

     SEC. 431. STATE LAWS CONCERNING PATERNITY ESTABLISHMENT.

       (a) State Laws Required.--Section 466(a)(5) (42 U.S.C. 
     666(a)(5)) is amended to read as follows:
       ``(5)(A)(i) Procedures which permit the establishment of 
     the paternity of a child at any time before the child attains 
     21 years of age.
       ``(ii) As of August 16, 1984, clause (i) shall also apply 
     to a child for whom paternity has not been established or for 
     whom a paternity action was brought but dismissed because a 
     statute of limitations of less than 21 years was then in 
     effect in the State.
       ``(B)(i) Procedures under which the State is required, in a 
     contested paternity case, unless otherwise barred by State 
     law, to require the child and all other parties (other than 
     individuals found under section 454(28) to have good cause 
     for refusing to cooperate) to submit to genetic tests upon 
     the request of any such party if the request is supported by 
     a sworn statement by the party--
       ``(I) alleging paternity, and setting forth facts 
     establishing a reasonable possibility of the requisite sexual 
     contact between the parties; or
       ``(II) denying paternity, and setting forth facts 
     establishing a reasonable possibility of the nonexistence of 
     sexual contact between the parties.
       ``(ii) Procedures which require the State agency in any 
     case in which the agency orders genetic testing--
       ``(I) to pay costs of such tests, subject to recoupment 
     (where the State so elects) from the alleged father if 
     paternity is established; and
       ``(II) to obtain additional testing in any case where an 
     original test result is contested, upon request and advance 
     payment by the contestant.
       ``(C)(i) Procedures for a simple civil process for 
     voluntarily acknowledging paternity under which the State 
     must provide that, before a mother and a putative father can 
     sign an acknowledgment of paternity, the mother and the 
     putative father must be given notice, orally and in writing, 
     of the alternatives to, the legal consequences of, and the 
     rights (including, if 1 parent is a minor, any rights 
     afforded due to minority status) and responsibilities that 
     arise from, signing the acknowledgment.
       ``(ii) Such procedures must include a hospital-based 
     program for the voluntary acknowledgment of paternity 
     focusing on the period immediately before or after the birth 
     of a child.
       ``(iii)(I) Such procedures must require the State agency 
     responsible for maintaining birth records to offer voluntary 
     paternity establishment services.
       ``(II)(aa) The Secretary shall prescribe regulations 
     governing voluntary paternity establishment services offered 
     by hospitals and birth record agencies.
       ``(bb) The Secretary shall prescribe regulations specifying 
     the types of other entities that may offer voluntary 
     paternity establishment services, and governing the provision 
     of such services, which shall include a requirement that such 
     an entity must use the same notice provisions used by, use 
     the same materials used by, provide the personnel providing 
     such services with the same training provided by, and 
     evaluate the provision of such services in the same manner as 
     the provision of such services is evaluated by, voluntary 
     paternity establishment programs of hospitals and birth 
     record agencies.
       ``(iv) Such procedures must require the State to develop 
     and use an affidavit for the voluntary acknowledgment of 
     paternity which includes the minimum requirements of the 
     affidavit developed by the Secretary under section 452(a)(7) 
     for the voluntary acknowledgment of paternity, and to give 
     full faith and credit to such an affidavit signed in any 
     other State according to its procedures.
       ``(D)(i) Procedures under which the name of the father 
     shall be included on the record of birth of the child only if 
     the father and mother have signed an acknowledgment of 
     paternity and under which a signed acknowledgment of 
     paternity is considered a legal finding of paternity, subject 
     to the right of any signatory to rescind the acknowledgment 
     within 60 days.
       ``(ii) Procedures under which, after the 60-day period 
     referred to in clause (i), a signed acknowledgment of 
     paternity may be challenged in court only on the basis of 
     fraud, duress, or material mistake of fact, with the burden 
     of proof upon the challenger, and under which the legal 
     responsibilities (including child support obligations) of any 
     signatory arising from the acknowledgment may not be 
     suspended during the challenge, except for good cause shown.
       ``(E) Procedures under which judicial or administrative 
     proceedings are not required or permitted to ratify an 
     unchallenged acknowledgment of paternity.
       ``(F) Procedures--
       ``(i) requiring the admission into evidence, for purposes 
     of establishing paternity, of the results of any genetic test 
     that is--
       ``(I) of a type generally acknowledged as reliable by 
     accreditation bodies designated by the Secretary; and
       ``(II) performed by a laboratory approved by such an 
     accreditation body;
       ``(ii) requiring an objection to genetic testing results to 
     be made in writing not later than a specified number of days 
     before any hearing at which the results may be introduced 
     into evidence (or, at State option, not later than a 
     specified number of days after receipt of the results); and
       ``(iii) making the test results admissible as evidence of 
     paternity without the need for foundation testimony or other 
     proof of authenticity or accuracy, unless objection is made.
       ``(G) Procedures which create a rebuttable or, at the 
     option of the State, conclusive presumption of paternity upon 
     genetic testing results indicating a threshold probability 
     that the alleged father is the father of the child.
       ``(H) Procedures requiring a default order to be entered in 
     a paternity case upon a showing of service of process on the 
     defendant and any additional showing required by State law.
       ``(I) Procedures providing that the parties to an action to 
     establish paternity are not entitled to a trial by jury.
       ``(J) Procedures which require that a temporary order be 
     issued, upon motion by a party, requiring the provision of 
     child support pending an administrative or judicial 
     determination of parentage, where there is clear and 
     convincing evidence of paternity (on the basis of genetic 
     tests or other evidence).
       ``(K) Procedures under which bills for pregnancy, 
     childbirth, and genetic testing are admissible as evidence 
     without requiring third-party foundation testimony, and shall 
     constitute prima facie evidence of amounts incurred for such 
     services or for testing on behalf of the child.
       ``(L) Procedures ensuring that the putative father has a 
     reasonable opportunity to initiate a paternity action.
       ``(M) Procedures under which voluntary acknowledgments and 
     adjudications of paternity by judicial or administrative 
     processes are filed with the State registry of birth records 
     for comparison with information in the State case 
     registry.''.
       (b) National Paternity Acknowledgment Affidavit.--Section 
     452(a)(7) (42 U.S.C. 652(a)(7)) is amended by inserting ``, 
     and develop an affidavit to be used for the voluntary 
     acknowledgment of paternity which shall include the social 
     security number of each parent'' before the semicolon.
       (c) Technical Amendment.--Section 468 (42 U.S.C. 668) is 
     amended by striking ``a simple civil process for voluntarily 
     acknowledging paternity and''.

     SEC. 432. OUTREACH FOR VOLUNTARY PATERNITY ESTABLISHMENT.

       Section 454(23) (42 U.S.C. 654(23)) is amended by inserting 
     ``and will publicize the availability and encourage the use 
     of procedures for voluntary establishment of paternity and 
     child support by means the State deems appropriate'' before 
     the semicolon.

     SEC. 433. COOPERATION BY APPLICANTS FOR AND RECIPIENTS OF 
                   TEMPORARY FAMILY ASSISTANCE.

       Section 454 (42 U.S.C. 654), as amended by sections 404(a), 
     412(a), and 413(a) of this Act, is amended--
       (1) by striking ``and'' at the end of paragraph (26);
       (2) by striking the period at the end of paragraph (27) and 
     inserting ``; and''; and
       (3) by inserting after paragraph (27) the following new 
     paragraph:
       ``(28) provide that the State agency responsible for 
     administering the State plan--
       ``(A) shall make the determination (and redetermination at 
     appropriate intervals) as to whether an individual who has 
     applied for or is receiving assistance under the State 
     program funded under part A is cooperating in good faith with 
     the State in establishing the paternity of, or in 
     establishing, modifying, or enforcing a support order for, 
     any child of the individual by providing the State agency 
     with the name of, and such other information as the State 
     agency may require with respect to, the father of the child, 
     subject to such good cause and other exceptions as the State 
     may establish and taking into account the best interests of 
     the child;
       ``(B) shall require the individual to supply additional 
     necessary information and appear at interviews, hearings, and 
     legal proceedings;
       ``(C) shall require the individual and the child to submit 
     to genetic tests pursuant to judicial or administrative 
     order; and
       ``(D) shall promptly notify the individual and the State 
     agency administering the State program funded under part A of 
     each such determination, and if noncooperation is determined, 
     the basis therefore.''.
             Subtitle E--Program Administration and Funding

     SEC. 441. FEDERAL MATCHING PAYMENTS.

       (a) Increased Base Matching Rate.--Section 455(a)(2) (42 
     U.S.C. 655(a)(2)) is amended to read as follows:
       ``(2) The percent specified in this paragraph for any 
     quarter is 66 percent.''.
       (b) Maintenance of Effort.--Section 455 (42 U.S.C. 655) is 
     amended--
       (1) in subsection (a)(1), in the matter preceding 
     subparagraph (A), by striking ``From'' and inserting 
     ``Subject to subsection (c), from''; and
       (2) by inserting after subsection (b) the following new 
     subsection:
       ``(c) Notwithstanding subsection (a), the total 
     expenditures under the State plan approved 

[[Page S11595]]
     under this part for fiscal year 1997 and each succeeding fiscal year, 
     reduced by the percentage specified in paragraph (2) for the 
     fiscal year shall not be less than such total expenditures 
     for fiscal year 1996, reduced by 66 percent.''.

     SEC. 442. PERFORMANCE-BASED INCENTIVES AND PENALTIES.

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

     ``SEC. 458. INCENTIVE ADJUSTMENTS TO MATCHING RATE.

       ``(a) Incentive Adjustments.--
       ``(1) In general.--Beginning with fiscal year 1999, the 
     Secretary shall increase the percent specified in section 
     455(a)(2) that applies to payments to a State under section 
     455(a)(1)(A) for each quarter in a fiscal year by a factor 
     reflecting the sum of the applicable incentive adjustments 
     (if any) determined in accordance with regulations under this 
     section with respect to the paternity establishment 
     percentage of the State for the immediately preceding fiscal 
     year and with respect to overall performance of the State in 
     child support enforcement during such preceding fiscal year.
       ``(2) Standards.--
       ``(A) In general.--The Secretary shall specify in 
     regulations--
       ``(i) the levels of accomplishment, and rates of 
     improvement as alternatives to such levels, which a State 
     must attain to qualify for an incentive adjustment under this 
     section; and
       ``(ii) the amounts of incentive adjustment that shall be 
     awarded to a State that achieves specified accomplishment or 
     improvement levels, which amounts shall be graduated, ranging 
     up to--

       ``(I) 12 percentage points, in connection with paternity 
     establishment; and
       ``(II) 12 percentage points, in connection with overall 
     performance in child support enforcement.

       ``(B) Limitation.--In setting performance standards 
     pursuant to subparagraph (A)(i) and adjustment amounts 
     pursuant to subparagraph (A)(ii), the Secretary shall ensure 
     that the aggregate number of percentage point increases as 
     incentive adjustments to all States do not exceed such 
     aggregate increases as assumed by the Secretary in estimates 
     of the cost of this section as of June 1994, unless the 
     aggregate performance of all States exceeds the projected 
     aggregate performance of all States in such cost estimates.
       ``(3) Determination of incentive adjustment.--The Secretary 
     shall determine the amount (if any) of the incentive 
     adjustment due each State on the basis of the data submitted 
     by the State pursuant to section 454(15)(B) concerning the 
     levels of accomplishment (and rates of improvement) with 
     respect to performance indicators specified by the Secretary 
     pursuant to this section.
       ``(4) Recycling of incentive adjustment.--A State to which 
     funds are paid by the Federal Government as a result of an 
     incentive adjustment under this section shall expend the 
     funds in the State program under this part within 2 years 
     after the date of the payment.
       ``(b) Definitions.--As used in this section:
       ``(1) Paternity establishment percentage.--The term 
     `paternity establishment percentage' means, with respect to a 
     State and a fiscal year--
       ``(A) the total number of children in the State who were 
     born out of wedlock, who have not attained 1 year of age and 
     for whom paternity is established or acknowledged during the 
     fiscal year; divided by
       ``(B) the total number of children born out of wedlock in 
     the State during the fiscal year.
       ``(2) Overall performance in child support enforcement.--
     The term `overall performance in child support enforcement' 
     means a measure or measures of the effectiveness of the State 
     agency in a fiscal year which takes into account factors 
     including--
       ``(A) the percentage of cases requiring a support order in 
     which such an order was established;
       ``(B) the percentage of cases in which child support is 
     being paid;
       ``(C) the ratio of child support collected to child support 
     due; and
       ``(D) the cost-effectiveness of the State program, as 
     determined in accordance with standards established by the 
     Secretary in regulations (after consultation with the 
     States).
       ``(3) State defined.--The term `State' does not include any 
     area within the jurisdiction of an Indian tribal 
     government.''.
       (b) Conforming Amendments.--Section 454(22) (42 U.S.C. 
     654(22)) is amended--
       (1) by striking ``incentive payments'' the 1st place such 
     term appears and inserting ``incentive adjustments''; and
       (2) by striking ``any such incentive payments made to the 
     State for such period'' and inserting ``any increases in 
     Federal payments to the State resulting from such incentive 
     adjustments''.
       (c) Calculation of IV-D Paternity Establishment 
     Percentage.--
       (1) Section 452(g)(1) (42 U.S.C. 652(g)(1)) is amended--
       (A) in the matter preceding subparagraph (A) by inserting 
     ``its overall performance in child support enforcement is 
     satisfactory (as defined in section 458(b) and regulations of 
     the Secretary), and'' after ``1994,''; and
       (B) in each of subparagraphs (A) and (B), by striking 
     ``75'' and inserting ``90''.
       (2) Section 452(g)(2)(A) (42 U.S.C. 652(g)(2)(A)) is 
     amended in the matter preceding clause (i)--
       (A) by striking ``paternity establishment percentage'' and 
     inserting ``IV-D paternity establishment percentage''; and
       (B) by striking ``(or all States, as the case may be)''.
       (3) Section 452(g)(3) (42 U.S.C. 652(g)(3)) is amended--
       (A) by striking subparagraph (A) and redesignating 
     subparagraphs (B) and (C) as subparagraphs (A) and (B), 
     respectively;
       (B) in subparagraph (A) (as so redesignated), by striking 
     ``the percentage of children born out-of-wedlock in a State'' 
     and inserting ``the percentage of children in a State who are 
     born out of wedlock or for whom support has not been 
     established''; and
       (C) in subparagraph (B) (as so redesignated)--
       (i) by inserting ``and overall performance in child support 
     enforcement'' after ``paternity establishment percentages''; 
     and
       (ii) by inserting ``and securing support'' before the 
     period.
       (d) Effective Dates.--
       (1) Incentive adjustments.--
       (A) In general.--The amendments made by subsections (a) and 
     (b) shall become effective on October 1, 1997, except to the 
     extent provided in subparagraph (B).
       (B) Exception.--Section 458 of the Social Security Act, as 
     in effect before the date of the enactment of this section, 
     shall be effective for purposes of incentive payments to 
     States for fiscal years before fiscal year 1999.
       (2) Penalty reductions.--The amendments made by subsection 
     (c) shall become effective with respect to calendar quarters 
     beginning on and after the date of the enactment of this Act.

     SEC. 443. FEDERAL AND STATE REVIEWS AND AUDITS.

       (a) State Agency Activities.--Section 454 (42 U.S.C. 654) 
     is amended--
       (1) in paragraph (14), by striking ``(14)'' and inserting 
     ``(14)(A)'';
       (2) by redesignating paragraph (15) as subparagraph (B) of 
     paragraph (14); and
       (3) by inserting after paragraph (14) the following new 
     paragraph:
       ``(15) provide for--
       ``(A) a process for annual reviews of and reports to the 
     Secretary on the State program operated under the State plan 
     approved under this part, which shall include such 
     information as may be necessary to measure State compliance 
     with Federal requirements for expedited procedures, using 
     such standards and procedures as are required by the 
     Secretary, under which the State agency will determine the 
     extent to which the program is operated in compliance with 
     this part; and
       ``(B) a process of extracting from the automated data 
     processing system required by paragraph (16) and transmitting 
     to the Secretary data and calculations concerning the levels 
     of accomplishment (and rates of improvement) with respect to 
     applicable performance indicators (including IV-D paternity 
     establishment percentages and overall performance in child 
     support enforcement) to the extent necessary for purposes of 
     sections 452(g) and 458.''.
       (b) Federal Activities.--Section 452(a)(4) (42 U.S.C. 
     652(a)(4)) is amended to read as follows:
       ``(4)(A) review data and calculations transmitted by State 
     agencies pursuant to section 454(15)(B) on State program 
     accomplishments with respect to performance indicators for 
     purposes of subsection (g) of this section and section 458;
       ``(B) review annual reports submitted pursuant to section 
     454(15)(A) and, as appropriate, provide to the State 
     comments, recommendations for additional or alternative 
     corrective actions, and technical assistance; and
       ``(C) conduct audits, in accordance with the Government 
     auditing standards of the Comptroller General of the United 
     States--
       ``(i) at least once every 3 years (or more frequently, in 
     the case of a State which fails to meet the requirements of 
     this part, concerning performance standards and reliability 
     of program data) to assess the completeness, reliability, and 
     security of the data, and the accuracy of the reporting 
     systems, used in calculating performance indicators under 
     subsection (g) of this section and section 458;
       ``(ii) of the adequacy of financial management of the State 
     program operated under the State plan approved under this 
     part, including assessments of--
       ``(I) whether Federal and other funds made available to 
     carry out the State program are being appropriately expended, 
     and are properly and fully accounted for; and
       ``(II) whether collections and disbursements of support 
     payments are carried out correctly and are fully accounted 
     for; and
       ``(iii) for such other purposes as the Secretary may find 
     necessary;''.
       (c) Effective Date.--The amendments made by this section 
     shall be effective with respect to calendar quarters 
     beginning 12 months or more after the date of the enactment 
     of this section.

     SEC. 444. REQUIRED REPORTING PROCEDURES.

       (a) Establishment.--Section 452(a)(5) (42 U.S.C. 652(a)(5)) 
     is amended by inserting ``, and establish procedures to be 
     followed by States for collecting and reporting information 
     required to be provided under this part, and establish 
     uniform definitions (including those necessary to enable the 
     measurement of State compliance with the requirements of this 
     part relating to expedited processes) to be applied in 
     following such procedures'' before the semicolon.
       (b) State Plan Requirement.--Section 454 (42 U.S.C. 654), 
     as amended by sections 404(a), 412(a), 413(a), and 433 of 
     this Act, is amended--
       (1) by striking ``and'' at the end of paragraph (27);
       (2) by striking the period at the end of paragraph (28) and 
     inserting ``; and''; and
       (3) by adding after paragraph (28) the following new 
     paragraph:
       ``(29) provide that the State shall use the definitions 
     established under section 452(a)(5) in collecting and 
     reporting information as required under this part.''.

     SEC. 445. AUTOMATED DATA PROCESSING REQUIREMENTS.

       (a) Revised Requirements.--
       (1) In general.--Section 454(16) (42 U.S.C. 654(16)) is 
     amended--

[[Page S11596]]

       (A) by striking ``, at the option of the State,'';
       (B) by inserting ``and operation by the State agency'' 
     after ``for the establishment'';
       (C) by inserting ``meeting the requirements of section 
     454A'' after ``information retrieval system'';
       (D) by striking ``in the State and localities thereof, so 
     as (A)'' and inserting ``so as'';
       (E) by striking ``(i)''; and
       (F) by striking ``(including'' and all that follows and 
     inserting a semicolon.
       (2) Automated data processing.--Part D of title IV (42 
     U.S.C. 651-669) is amended by inserting after section 454 the 
     following new section:
     ``SEC. 454A. AUTOMATED DATA PROCESSING.

       ``(a) In General.--In order for a State to meet the 
     requirements of this section, the State agency administering 
     the State program under this part shall have in operation a 
     single statewide automated data processing and information 
     retrieval system which has the capability to perform the 
     tasks specified in this section with the frequency and in the 
     manner required by or under this part.
       ``(b) Program Management.--The automated system required by 
     this section shall perform such functions as the Secretary 
     may specify relating to management of the State program under 
     this part, including--
       ``(1) controlling and accounting for use of Federal, State, 
     and local funds in carrying out the program; and
       ``(2) maintaining the data necessary to meet Federal 
     reporting requirements under this part on a timely basis.
       ``(c) Calculation of Performance Indicators.--In order to 
     enable the Secretary to determine the incentive and penalty 
     adjustments required by sections 452(g) and 458, the State 
     agency shall--
       ``(1) use the automated system--
       ``(A) to maintain the requisite data on State performance 
     with respect to paternity establishment and child support 
     enforcement in the State; and
       ``(B) to calculate the IV-D paternity establishment 
     percentage and overall performance in child support 
     enforcement for the State for each fiscal year; and
       ``(2) have in place systems controls to ensure the 
     completeness, and reliability of, and ready access to, the 
     data described in paragraph (1)(A), and the accuracy of the 
     calculations described in paragraph (1)(B).
       ``(d) Information Integrity and Security.--The State agency 
     shall have in effect safeguards on the integrity, accuracy, 
     and completeness of, access to, and use of data in the 
     automated system required by this section, which shall 
     include the following (in addition to such other safeguards 
     as the Secretary may specify in regulations):
       ``(1) Policies restricting access.--Written policies 
     concerning access to data by State agency personnel, and 
     sharing of data with other persons, which--
       ``(A) permit access to and use of data only to the extent 
     necessary to carry out the State program under this part; and
       ``(B) specify the data which may be used for particular 
     program purposes, and the personnel permitted access to such 
     data.
       ``(2) Systems controls.--Systems controls (such as 
     passwords or blocking of fields) to ensure strict adherence 
     to the policies described in paragraph (1).
       ``(3) Monitoring of access.--Routine monitoring of access 
     to and use of the automated system, through methods such as 
     audit trails and feedback mechanisms, to guard against and 
     promptly identify unauthorized access or use.
       ``(4) Training and information.--Procedures to ensure that 
     all personnel (including State and local agency staff and 
     contractors) who may have access to or be required to use 
     confidential program data are informed of applicable 
     requirements and penalties (including those in section 6103 
     of the Internal Revenue Code of 1986), and are adequately 
     trained in security procedures.
       ``(5) Penalties.--Administrative penalties (up to and 
     including dismissal from employment) for unauthorized access 
     to, or disclosure or use of, confidential data.''.
       (3) Regulations.--The Secretary of Health and Human 
     Services shall prescribe final regulations for implementation 
     of section 454A of the Social Security Act not later than 2 
     years after the date of the enactment of this Act.
       (4) Implementation timetable.--Section 454(24) (42 U.S.C. 
     654(24)), as amended by sections 404(a)(2) and 412(a)(1) of 
     this Act, is amended to read as follows:
       ``(24) provide that the State will have in effect an 
     automated data processing and information retrieval system--
       ``(A) by October 1, 1997, which meets all requirements of 
     this part which were enacted on or before the date of 
     enactment of the Family Support Act of 1988; and
       ``(B) by October 1, 1999, which meets all requirements of 
     this part enacted on or before the date of the enactment of 
     the Family Self-Sufficiency Act of 1995, except that such 
     deadline shall be extended by 1 day for each day (if any) by 
     which the Secretary fails to meet the deadline imposed by 
     section 445(a)(3) of the Family Self-Sufficiency Act of 
     1995.''.
       (b) Special Federal Matching Rate for Development Costs of 
     Automated Systems.--
       (1) In general.--Section 455(a) (42 U.S.C. 655(a)) is 
     amended--
       (A) in paragraph (1)(B)--
       (i) by striking ``90 percent'' and inserting ``the percent 
     specified in paragraph (3)'';
       (ii) by striking ``so much of''; and
       (iii) by striking ``which the Secretary'' and all that 
     follows and inserting ``, and''; and
       (B) by adding at the end the following new paragraph:
       ``(3)(A) The Secretary shall pay to each State, for each 
     quarter in fiscal years 1996 and 1997, 90 percent of so much 
     of the State expenditures described in paragraph (1)(B) as 
     the Secretary finds are for a system meeting the requirements 
     specified in section 454(16), but limited to the amount 
     approved for States in the advance planning documents of such 
     States submitted before May 1, 1995.
       ``(B)(i) The Secretary shall pay to each State, for each 
     quarter in fiscal years 1998 through 2001, the percentage 
     specified in clause (ii) of so much of the State expenditures 
     described in paragraph (1)(B) as the Secretary finds are for 
     a system meeting the requirements of sections 454(16) and 
     454A.
       ``(ii) The percentage specified in this clause is the 
     greater of--
       ``(I) 80 percent; or
       ``(II) the percentage otherwise applicable to Federal 
     payments to the State under subparagraph (A) (as adjusted 
     pursuant to section 458).''.
       (2) Temporary limitation on payments under special federal 
     matching rate.--
       (A) In general.--The Secretary of Health and Human Services 
     may not pay more than $260,000,000 in the aggregate under 
     section 455(a)(3) of the Social Security Act for fiscal years 
     1996, 1997, 1998, 1999, and 2000.
       (B) Allocation of limitation among states.--The total 
     amount payable to a State under section 455(a)(3) of such Act 
     for fiscal years 1996, 1997, 1998, 1999, and 2000 shall not 
     exceed the limitation determined for the State by the 
     Secretary of Health and Human Services in regulations.
       (C) Allocation formula.--The regulations referred to in 
     subparagraph (B) shall prescribe a formula for allocating the 
     amount specified in subparagraph (A) among States with plans 
     approved under part D of title IV of the Social Security Act, 
     which shall take into account--
       (i) the relative size of State caseloads under such part; 
     and
       (ii) the level of automation needed to meet the automated 
     data processing requirements of such part.
       (c) Conforming Amendment.--Section 123(c) of the Family 
     Support Act of 1988 (102 Stat. 2352; Public Law 100-485) is 
     repealed.

     SEC. 446. TECHNICAL ASSISTANCE.

       (a) For Training of Federal and State Staff, Research and 
     Demonstration Programs, and Special Projects of Regional or 
     National Significance.--Section 452 (42 U.S.C. 652) is 
     amended by adding at the end the following new subsection:
       ``(j) Out of any money in the Treasury of the United States 
     not otherwise appropriated, there is hereby appropriated to 
     the Secretary for each fiscal year an amount equal to 1 
     percent of the total amount paid to the Federal Government 
     pursuant to section 457(a) during the immediately preceding 
     fiscal year (as determined on the basis of the most recent 
     reliable data available to the Secretary
      as of the end of the 3rd calendar quarter following the end 
     of such preceding fiscal year), to cover costs incurred by 
     the Secretary for--
       ``(1) information dissemination and technical assistance to 
     States, training of State and Federal staff, staffing 
     studies, and related activities needed to improve programs 
     under this part (including technical assistance concerning 
     State automated systems required by this part); and
       ``(2) research, demonstration, and special projects of 
     regional or national significance relating to the operation 
     of State programs under this part.''.
       (b) Operation of Federal Parent Locator Service.--Section 
     453 (42 U.S.C. 653), as amended by section 416(f) of this 
     Act, is amended by adding at the end the following new 
     subsection:
       ``(n) Out of any money in the Treasury of the United States 
     not otherwise appropriated, there is hereby appropriated to 
     the Secretary for each fiscal year an amount equal to 2 
     percent of the total amount paid to the Federal Government 
     pursuant to section 457(a) during the immediately preceding 
     fiscal year (as determined on the basis of the most recent 
     reliable data available to the Secretary as of the end of the 
     3rd calendar quarter following the end of such preceding 
     fiscal year), to cover costs incurred by the Secretary for 
     operation of the Federal Parent Locator Service under this 
     section, to the extent such costs are not recovered through 
     user fees.''.

     SEC. 447. REPORTS AND DATA COLLECTION BY THE SECRETARY.

       (a) Annual Report to Congress.--
       (1) Section 452(a)(10)(A) (42 U.S.C. 652(a)(10)(A)) is 
     amended--
       (A) by striking ``this part;'' and inserting ``this part, 
     including--''; and
       (B) by adding at the end the following new clauses:
       ``(i) the total amount of child support payments collected 
     as a result of services furnished during the fiscal year to 
     individuals receiving services under this part;
       ``(ii) the cost to the States and to the Federal Government 
     of so furnishing the services; and
       ``(iii) the number of cases involving families--

       ``(I) who became ineligible for assistance under State 
     programs funded under part A during a month in the fiscal 
     year; and
       ``(II) with respect to whom a child support payment was 
     received in the month;''.

       (2) Section 452(a)(10)(C) (42 U.S.C. 652(a)(10)(C)) is 
     amended--
       (A) in the matter preceding clause (i)--
       (i) by striking ``with the data required under each clause 
     being separately stated for cases'' and inserting 
     ``separately stated for (1) cases'';
       (ii) by striking ``cases where the child was formerly 
     receiving'' and inserting ``or formerly received'';
       (iii) by inserting ``or 1912'' after ``471(a)(17)''; and
       (iv) by inserting ``(2)'' before ``all other'';

[[Page S11597]]

       (B) in each of clauses (i) and (ii), by striking ``, and 
     the total amount of such obligations'';
       (C) in clause (iii), by striking ``described in'' and all 
     that follows and inserting ``in which support was collected 
     during the fiscal year;'';
       (D) by striking clause (iv); and
       (E) by redesignating clause (v) as clause (vii), and 
     inserting after clause (iii) the following new clauses:
       ``(iv) the total amount of support collected during such 
     fiscal year and distributed as current support;
       ``(v) the total amount of support collected during such 
     fiscal year and distributed as arrearages;
       ``(vi) the total amount of support due and unpaid for all 
     fiscal years; and''.
       (3) Section 452(a)(10)(G) (42 U.S.C. 652(a)(10)(G)) is 
     amended by striking ``on the use of Federal courts and''.
       (4) Section 452(a)(10) (42 U.S.C. 652(a)(10)) is amended--
       (A) in subparagraph (H), by striking ``and'';
       (B) in subparagraph (I), by striking the period and 
     inserting ``; and''; and
       (C) by inserting after subparagraph (I) the following new 
     subparagraph:
       ``(J) compliance, by State, with the standards established 
     pursuant to subsections (h) and (i).''.
       (5) Section 452(a)(10) (42 U.S.C. 652(a)(10)) is amended by 
     striking all that follows subparagraph (J), as added by 
     paragraph (4).
       (b) Effective Date.--The amendments made by subsection (a) 
     shall be effective with respect to fiscal year 1996 and 
     succeeding fiscal years.
      Subtitle F--Establishment and Modification of Support Orders

     SEC. 451. NATIONAL CHILD SUPPORT GUIDELINES COMMISSION.

       (a) Establishment.--There is hereby established a 
     commission to be known as the National Child Support 
     Guidelines Commission (in this section referred to as the 
     ``Commission'').
       (b) General Duties.--
       (1) In general.--The Commission shall determine--
       (A) whether it is appropriate to develop a national child 
     support guideline for consideration by the Congress or for 
     adoption by individual States; or
       (B) based on a study of various guideline models, the 
     benefits and deficiencies of such models, and any needed 
     improvements.
       (2) Development of models.--If the Commission determines 
     under paragraph (1)(A) that a national child support 
     guideline is needed or under paragraph (1)(B) that 
     improvements to guideline models are needed, the Commission 
     shall develop such national guideline or improvements.
       (c) Matters for Consideration by the Commission.--In making 
     the recommendations concerning guidelines required under 
     subsection (b), the Commission shall consider--
       (1) the adequacy of State child support guidelines 
     established pursuant to section 467;
       (2) matters generally applicable to all support orders, 
     including--
       (A) the feasibility of adopting uniform terms in all child 
     support orders;
       (B) how to define income and under what circumstances 
     income should be imputed; and
       (C) tax treatment of child support payments;
       (3) the appropriate treatment of cases in which either or 
     both parents have financial obligations to more than 1 
     family, including the effect (if any) to be given to--
       (A) the income of either parent's spouse; and
       (B) the financial responsibilities of either parent for 
     other children or stepchildren;
       (4) the appropriate treatment of expenses for child care 
     (including care of the children of either parent, and work-
     related or job-training-related child care);
       (5) the appropriate treatment of expenses for health care 
     (including uninsured health care) and other extraordinary 
     expenses for children with special needs;
       (6) the appropriate duration of support by 1 or both 
     parents, including--
       (A) support (including shared support) for postsecondary or 
     vocational education; and
       (B) support for disabled adult children;
       (7) procedures to automatically adjust child support orders 
     periodically to address changed economic circumstances, 
     including changes in the Consumer Price Index or either 
     parent's income and expenses in particular cases;
       (8) procedures to help noncustodial parents address 
     grievances regarding visitation and custody orders to prevent 
     such parents from withholding child support payments until 
     such grievances are resolved; and
       (9) whether, or to what extent, support levels should be 
     adjusted in cases in which custody is shared or in which the 
     noncustodial parent has extended visitation rights.
       (d) Membership.--
       (1) Number; appointment.--
       (A) In general.--The Commission shall be composed of 12 
     individuals appointed jointly by the Secretary of Health and 
     Human Services and the Congress, not later than January 15, 
     1997, of which--
       (i) 2 shall be appointed by the Chairman of the Committee 
     on Finance of the Senate, and 1 shall be appointed by the 
     ranking minority member of the Committee;
       (ii) 2 shall be appointed by the Chairman of the Committee 
     on Ways and Means of the House of Representatives, and 1 
     shall be appointed by the ranking minority member of the 
     Committee; and
       (iii) 6 shall be appointed by the Secretary of Health and 
     Human Services.
       (B) Qualifications of members.--Members of the Commission 
     shall have expertise and experience in the evaluation and 
     development of child support guidelines. At least 1 member 
     shall represent advocacy groups for custodial parents, at 
     least 1 member shall represent advocacy groups for 
     noncustodial parents, and at least 1 member shall be the 
     director of a State program under part D of title IV of the 
     Social Security Act.
       (2) Terms of office.--Each member shall be appointed for a 
     term of 2 years. A vacancy in the Commission shall be filled 
     in the manner in which the original appointment was made.
       (e) Commission Powers, Compensation, Access to Information, 
     and Supervision.--The 1st sentence of subparagraph (C), the 
     1st and 3rd sentences of subparagraph (D), subparagraph (F) 
     (except with respect to the conduct of medical studies), 
     clauses (ii) and (iii) of subparagraph (G), and subparagraph 
     (H) of section 1886(e)(6) of the Social Security Act shall 
     apply to the Commission in the same manner in which such 
     provisions apply to the Prospective Payment Assessment 
     Commission.
       (f) Report.--Not later than 2 years after the appointment 
     of members, the Commission shall submit to the President, the 
     Committee on Ways and Means of the House of Representatives, 
     and the Committee on Finance of the Senate, a recommended 
     national child support guideline and a final assessment of 
     issues relating to such a proposed national child support 
     guideline.
       (g) Termination.--The Commission shall terminate 6 months 
     after the submission of the report described in subsection 
     (e).

     SEC. 452. SIMPLIFIED PROCESS FOR REVIEW AND ADJUSTMENT OF 
                   CHILD SUPPORT ORDERS.

       Section 466(a)(10) (42 U.S.C. 666(a)(10)) is amended to 
     read as follows:
       ``(10) Procedures under which the State shall review and 
     adjust each support order being enforced under this part upon 
     the request of either parent or the State if there is an 
     assignment. Such procedures shall provide the following:
       ``(A) The State shall review and, as appropriate, adjust 
     the support order every 3 years, taking into account the best 
     interests of the child involved.
       ``(B)(i) The State may elect to review and, if appropriate, 
     adjust an order pursuant to subparagraph (A) by--
       ``(I) reviewing and, if appropriate, adjusting the order in 
     accordance with the guidelines established pursuant to 
     section 467(a) if the amount of the child support award under 
     the order differs from the amount that would be awarded in 
     accordance with the guidelines; or
       ``(II) applying a cost-of-living adjustment to the order in 
     accordance with a formula developed by the State and permit 
     either party to contest the adjustment, within 30 days after 
     the date of the notice of the adjustment, by making a request 
     for review and, if appropriate, adjustment of the order in 
     accordance with the child support guidelines established 
     pursuant to section 467(a).
       ``(ii) Any adjustment under clause (i) shall be made 
     without a requirement for proof or showing of a change in 
     circumstances.
       ``(C) The State may use automated methods (including 
     automated comparisons with wage or State income tax data) to 
     identify orders eligible for review, conduct the review, 
     identify orders eligible for adjustment, apply the 
     appropriate adjustment to the orders eligible for adjustment 
     under the threshold established by the State.
       ``(D) The State shall, at the request of either parent 
     subject to such an order or of any State child support 
     enforcement agency, review and, if appropriate, adjust the 
     order in accordance with the guidelines established pursuant 
     to section 467(a) based upon a substantial change in the 
     circumstances of either parent.
       ``(E) The State shall provide notice to the parents subject 
     to such an order informing them of their right to request the 
     State to review and, if appropriate, adjust the order 
     pursuant to subparagraph (D). The notice may be included in 
     the order.''.

     SEC. 453. FURNISHING CONSUMER REPORTS FOR CERTAIN PURPOSES 
                   RELATING TO CHILD SUPPORT.

       Section 604 of the Fair Credit Reporting Act (15 U.S.C. 
     1681b) is amended by adding at the end the following new 
     paragraphs:
       ``(4) In response to a request by the head of a State or 
     local child support enforcement agency (or a State or local 
     government official authorized by the head of such an 
     agency), if the person making the request certifies to the 
     consumer reporting agency that--
       ``(A) the consumer report is needed for the purpose of 
     establishing an individual's capacity to make child support 
     payments or determining the appropriate level of such 
     payments;
       ``(B) the paternity of the consumer for the child to which 
     the obligation relates has been established or acknowledged 
     by the consumer in accordance with State laws under which the 
     obligation arises (if required by those laws);
       ``(C) the person has provided at least 10 days' prior 
     notice to the consumer whose report is requested, by 
     certified or registered mail to the last known address of the 
     consumer, that the report will be requested, and
       ``(D) the consumer report will be kept confidential, will 
     be used solely for a purpose described in subparagraph (A), 
     and will not be used in connection with any other civil, 
     administrative, or criminal proceeding, or for any other 
     purpose.
       ``(5) To an agency administering a State plan under section 
     454 of the Social Security Act (42
      U.S.C. 654) for use to set an initial or modified child 
     support award.''.

     SEC. 454. NONLIABILITY FOR DEPOSITORY INSTITUTIONS PROVIDING 
                   FINANCIAL RECORDS TO STATE CHILD SUPPORT 
                   ENFORCEMENT AGENCIES IN CHILD SUPPORT CASES.

       (a) In General.--Notwithstanding any other provision of 
     Federal or State law, a depository institution shall not be 
     liable under any Federal or State law to any person for 
     disclosing any financial record of an individual to a State 
     child support enforcement agency attempting to establish, 
     modify, or enforce a child support obligation of such 
     individual.

[[Page S11598]]

       (b) Prohibition of Disclosure of Financial Record Obtained 
     by State Child Support Enforcement Agency.--A State child 
     support enforcement agency which obtains a financial record 
     of an individual from a financial institution pursuant to 
     subsection (a) may disclose such financial record only for 
     the purpose of, and to the extent necessary in, establishing, 
     modifying, or enforcing a child support obligation of such 
     individual.
       (c) Civil Damages for Unauthorized Disclosure.--
       (1) Disclosure by state officer or employee.--If any person 
     knowingly, or by reason of negligence, discloses a financial 
     record of an individual in violation of subsection (b), such 
     individual may bring a civil action for damages against such 
     person in a district court of the United States.
       (2) No liability for good faith but erroneous 
     interpretation.--No liability shall arise under this 
     subsection with respect to any disclosure which results from 
     a good faith, but erroneous, interpretation of subsection 
     (b).
       (3) Damages.--In any action brought under paragraph (1), 
     upon a finding of liability on the part of the defendant, the 
     defendant shall be liable to the plaintiff in an amount equal 
     to the sum of--
       (A) the greater of--
       (i) $1,000 for each act of unauthorized disclosure of a 
     financial record with respect to which such defendant is 
     found liable; or
       (ii) the sum of--

       (I) the actual damages sustained by the plaintiff as a 
     result of such unauthorized disclosure; plus
       (II) in the case of a willful disclosure or a disclosure 
     which is the result of gross negligence, punitive damages; 
     plus

       (B) the costs (including attorney's fees) of the action.
       (d) Definitions.--For purposes of this section:
       (1) The term ``depository institution'' means--
       (A) a depository institution, as defined in section 3(c) of 
     the Federal Deposit Insurance Act (12 U.S.C. 1813(c));
       (B) an institution-affiliated party, as defined in section 
     3(u) of such Act (12 U.S.C. 1813(v)); and
       (C) any Federal credit union or State credit union, as 
     defined in section 101 of the Federal Credit Union Act (12 
     U.S.C. 1752), including an institution-affiliated party of 
     such a credit union, as defined in section 206(r) of such Act 
     (12 U.S.C. 1786(r)).
       (2) The term ``financial record'' has the meaning given 
     such term in section 1101 of the Right to Financial Privacy 
     Act of 1978 (12 U.S.C. 3401).
       (3) The term ``State child support enforcement agency'' 
     means a State agency which administers a State program for 
     establishing and enforcing child support obligations.
               Subtitle G--Enforcement of Support Orders

     SEC. 461. FEDERAL INCOME TAX REFUND OFFSET.

       (a) Changed Order of Refund Distribution Under Internal 
     Revenue Code.--
       (1) In general.--Subsection (c) of section 6402 of the 
     Internal Revenue Code of 1986 (relating to authority to make 
     credits or refunds) is amended by striking the 3rd and 4th 
     sentences and inserting the following new sentences: ``A 
     reduction under this subsection shall be applied 1st to 
     satisfy past-due support, before any other reductions allowed 
     by law (including a credit against future liability for an 
     internal revenue tax) have been made. A reduction under this 
     subsection shall be assigned to the State with respect to 
     past-due support owed to individuals for periods such 
     individuals were receiving assistance under part A or B of 
     title IV of the Social Security Act only after satisfying all 
     other past-due support.''.
       (2) Conforming amendment.--Paragraph (2) of section 6402(d) 
     of such Code is amended by striking ``with respect to past-
     due support collected pursuant to an assignment under section 
     402(a)(26) of the Social Security Act''.
       (b) Elimination of Disparities in Treatment of Assigned and 
     Nonassigned Arrearages.--
       (1) Section 464(a) (42 U.S.C. 664(a)) is amended--
       (A) by striking ``(a)'' and inserting ``(a) Offset 
     Authorized.--'';
       (B) in paragraph (1)--
       (i) in the 1st sentence, by striking ``which has been 
     assigned to such State pursuant to section 402(a)(26) or 
     section 471(a)(17)''; and
       (ii) in the 2nd sentence, by striking ``in accordance with 
     section 457(b)(4) or (d)(3)'' and inserting ``as provided in 
     paragraph (2)'';
       (C) by striking paragraph (2) and inserting the following 
     new paragraph:
       ``(2) The State agency shall distribute amounts paid by the 
     Secretary of the Treasury pursuant to paragraph (1)--
       ``(A) in accordance with section 457(a), in the case of 
     past-due support assigned to a State; and
       ``(B) to or on behalf of the child to whom the support was 
     owed, in the case of past-due support not so assigned.''; and
       (D) in paragraph (3)--
       (i) by striking ``or (2)'' each place such term appears; 
     and
       (ii) in subparagraph (B), by striking ``under paragraph 
     (2)'' and inserting ``on account of past-due support 
     described in paragraph (2)(B)''.
       (2) Section 464(b) (42 U.S.C. 664(b)) is amended--
       (A) by striking ``(b)(1)'' and inserting the following:
       ``(b) Regulations.--''; and
       (B) by striking paragraph (2).
       (3) Section 464(c) (42 U.S.C. 664(c)) is amended--
       (A) by striking ``(c)(1) Except as provided in paragraph 
     (2), as'' and inserting the following:
       ``(c) Definition.--As''; and
       (B) by striking paragraphs (2) and (3).

     SEC. 462. INTERNAL REVENUE SERVICE COLLECTION OF ARREARAGES.

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

     SEC. 463. AUTHORITY TO COLLECT SUPPORT FROM FEDERAL 
                   EMPLOYEES.

       (a) Consolidation and Streamlining of Authorities.--Section 
     459 (42 U.S.C. 659) is amended to read as follows:

     ``SEC. 459. CONSENT BY THE UNITED STATES TO INCOME 
                   WITHHOLDING, GARNISHMENT, AND SIMILAR 
                   PROCEEDINGS FOR ENFORCEMENT OF CHILD SUPPORT 
                   AND ALIMONY OBLIGATIONS.

       ``(a) Consent To Support Enforcement.--Notwithstanding any 
     other provision of law (including section 207 of this Act and 
     section 5301 of title 38, United States Code), effective 
     January 1, 1975, moneys (the entitlement to which is based 
     upon remuneration for employment) due from, or payable by, 
     the United States or the District of Columbia (including any 
     agency, subdivision, or instrumentality thereof) to any 
     individual, including members of the Armed Forces of the 
     United States, shall be subject, in like manner and to the 
     same extent as if the United States or the District of 
     Columbia were a private person, to withholding in accordance 
     with State law enacted pursuant to subsections (a)(1) and (b) 
     of section 466 and regulations of the Secretary under such 
     subsections, and to any other legal process brought, by a 
     State agency administering a program under a State plan 
     approved under this part or by an individual obligee, to 
     enforce the legal obligation of the individual to provide 
     child support or alimony.
       ``(b) Consent to Requirements Applicable to Private 
     Person.--With respect to notice to withhold income pursuant 
     to subsection (a)(1) or (b) of section 466, or any other 
     order or process to enforce support obligations against an 
     individual (if the order or process contains or is 
     accompanied by sufficient data to permit prompt 
     identification of the individual and the moneys involved), 
     each governmental entity specified in subsection (a) shall be 
     subject to the same requirements as would apply if the entity 
     were a private person, except as otherwise provided in this 
     section.
       ``(c) Designation of Agent; Response to Notice or Process--
       ``(1) Designation of agent.--The head of each agency 
     subject to this section shall--
       ``(A) designate an agent or agents to receive orders and 
     accept service of process in matters relating to child 
     support or alimony; and
       ``(B) annually publish in the Federal Register the 
     designation of the agent or agents, identified by title or 
     position, mailing address, and telephone number.
       ``(2) Response to notice or process.--If an agent 
     designated pursuant to paragraph (1) of this subsection 
     receives notice pursuant to State procedures in effect 
     pursuant to subsection (a)(1) or (b) of section 466, or is 
     effectively served with any order, process, or interrogatory, 
     with respect to an individual's child support or alimony 
     payment obligations, the agent shall--
       ``(A) as soon as possible (but not later than 15 days) 
     thereafter, send written notice of the notice or service 
     (together with a copy of the notice or service) to the 
     individual at the duty station or last-known home address of 
     the individual;
       ``(B) within 30 days (or such longer period as may be 
     prescribed by applicable State law) after receipt of a notice 
     pursuant to such State procedures, comply with all applicable 
     provisions of section 466; and
       ``(C) within 30 days (or such longer period as may be 
     prescribed by applicable State law) after effective service 
     of any other such order, process, or interrogatory, respond 
     to the order, process, or interrogatory.
       ``(d) Priority of Claims.--If a governmental entity 
     specified in subsection (a) receives notice or is served with 
     process, as provided in this section, concerning amounts owed 
     by an individual to more than 1 person--
       ``(1) support collection under section 466(b) must be given 
     priority over any other process, as provided in section 
     466(b)(7);
       ``(2) allocation of moneys due or payable to an individual 
     among claimants under section 466(b) shall be governed by 
     section 466(b) and the regulations prescribed under such 
     section; and
       ``(3) such moneys as remain after compliance with 
     paragraphs (1) and (2) shall be available to satisfy any 
     other such processes on a 1st-come, 1st-served basis, with 
     any such process being satisfied out of such moneys as remain 
     after the satisfaction of all such processes which have been 
     previously served.
       ``(e) No Requirement To Vary Pay Cycles.--A governmental 
     entity that is affected by legal process served for the 
     enforcement of an individual's child support or alimony 
     payment 

[[Page S11599]]
     obligations shall not be required to vary its normal pay and 
     disbursement cycle in order to comply with the legal process.
       ``(f) Relief From Liability.--
       ``(1) Neither the United States, nor the government of the 
     District of Columbia, nor any disbursing officer shall be 
     liable with respect to any payment made from moneys due or 
     payable from the United States to any individual pursuant to 
     legal process regular on its face, if the payment is made in 
     accordance with this section and the regulations issued to 
     carry out this section.
       ``(2) No Federal employee whose duties include taking 
     actions necessary to comply with the requirements of 
     subsection (a) with regard to any individual shall be subject 
     under any law to any disciplinary action or civil or criminal 
     liability or penalty for, or on account of, any disclosure of 
     information made by the employee in connection with the 
     carrying out of such actions.
       ``(g) Regulations.--Authority to promulgate regulations for 
     the implementation of this section shall, insofar as this 
     section applies to moneys due from (or payable by)--
       ``(1) the United States (other than the legislative or 
     judicial branches of the Federal Government) or the 
     government of the District of Columbia, be vested in the 
     President (or the designee of the President);
       ``(2) the legislative branch of the Federal Government, be 
     vested jointly in the President pro tempore of the Senate and 
     the Speaker of the House of Representatives (or their 
     designees), and
       ``(3) the judicial branch of the Federal Government, be 
     vested in the Chief Justice of the United States (or the 
     designee of the Chief Justice).
       ``(h) Moneys Subject To Process.--
       ``(1) In general.--Subject to paragraph (2), moneys paid or 
     payable to an individual which are considered to be based 
     upon remuneration for employment, for purposes of this 
     section--
       ``(A) consist of--
       ``(i) compensation paid or payable for personal services of 
     the individual, whether the compensation is denominated as 
     wages, salary, commission, bonus, pay, allowances, or 
     otherwise (including severance pay, sick pay, and incentive 
     pay);
       ``(ii) periodic benefits (including a periodic benefit as 
     defined in section 228(h)(3)) or other payments--

       ``(I) under the insurance system established by title II;
       ``(II) under any other system or fund established by the 
     United States which provides for the payment of pensions, 
     retirement or retired pay, annuities, dependents' or 
     survivors' benefits, or similar amounts payable on account of 
     personal services performed by the individual or any other 
     individual;
       ``(III) as compensation for death under any Federal 
     program;
       ``(IV) under any Federal program established to provide 
     `black lung' benefits; or
       ``(V) by the Secretary of Veterans Affairs as pension, or 
     as compensation for a service-connected disability or death 
     (except any compensation paid by the Secretary to a member of 
     the Armed Forces who is in receipt of retired or retainer pay 
     if the member has waived a portion of the retired pay of the 
     member in order to receive the compensation); and

       ``(iii) workers' compensation benefits paid under Federal 
     or State law; but
       ``(B) do not include any payment--
       ``(i) by way of reimbursement or otherwise, to defray 
     expenses incurred by the individual in carrying out duties 
     associated with the employment of the individual; or
       ``(ii) as allowances for members of the uniformed services 
     payable pursuant to chapter 7 of title 37, United States 
     Code, as prescribed by the Secretaries concerned (defined by 
     section 101(5) of such title) as necessary for the efficient 
     performance of duty.
       ``(2) Certain amounts excluded.--In determining the amount 
     of any moneys due from, or payable by, the United States to 
     any individual, there shall be excluded amounts which--
       ``(A) are owed by the individual to the United States;
       ``(B) are required by law to be, and are, deducted from the 
     remuneration or other payment involved, including Federal 
     employment taxes, and fines and forfeitures ordered by court-
     martial;
       ``(C) are properly withheld for Federal, State, or local 
     income tax purposes, if the withholding of the amounts is 
     authorized or required by law and if amounts withheld are not 
     greater than would be the case if the individual claimed all 
     dependents to which he was entitled (the withholding of 
     additional amounts pursuant to section 3402(i) of the 
     Internal Revenue Code of 1986 may be permitted only when the 
     individual presents evidence of a tax obligation which 
     supports the additional withholding);
       ``(D) are deducted as health insurance premiums;
       ``(E) are deducted as normal retirement contributions (not 
     including amounts deducted for supplementary coverage); or
       ``(F) are deducted as normal life insurance premiums from 
     salary or other remuneration for employment (not including 
     amounts deducted for supplementary coverage).
       ``(i) Definitions.--As used in this section:
       ``(1) United states.--The term `United States' includes any 
     department, agency, or instrumentality of the legislative, 
     judicial, or executive branch of the Federal Government, the 
     United States Postal Service, the Postal Rate Commission, any 
     Federal corporation created by an Act of Congress that is 
     wholly owned by the Federal Government, and the governments 
     of the territories and possessions of the United States.
       ``(2) Child support.--The term `child support', when used 
     in reference to the legal obligations of an individual to 
     provide such support, means periodic payments of funds for 
     the support and maintenance of a child or children with 
     respect to which the individual has such an obligation, and 
     (subject to and in
      accordance with State law) includes payments to provide for 
     health care, education, recreation, clothing, or to meet 
     other specific needs of such a child or children, and 
     includes attorney's fees, interest, and court costs, when 
     and to the extent that the same are expressly made 
     recoverable as such pursuant to a decree, order, or 
     judgment issued in accordance with applicable State law by 
     a court of competent jurisdiction.
       ``(3) Alimony.--The term `alimony', when used in reference 
     to the legal obligations of an individual to provide the 
     same, means periodic payments of funds for the support and 
     maintenance of the spouse (or former spouse) of the 
     individual, and (subject to and in accordance with State law) 
     includes separate maintenance, alimony pendente lite, 
     maintenance, and spousal support, and includes attorney's 
     fees, interest, and court costs when and to the extent that 
     the same are expressly made recoverable as such pursuant to a 
     decree, order, or judgment issued in accordance with 
     applicable State law by a court of competent jurisdiction. 
     Such term does not include any payment or transfer of 
     property or its value by an individual to the spouse or a 
     former spouse of the individual in compliance with any 
     community property settlement, equitable distribution of 
     property, or other division of property between spouses or 
     former spouses.
       ``(4) Private person.--The term `private person' means a 
     person who does not have sovereign or other special immunity 
     or privilege which causes the person not to be subject to 
     legal process.
       ``(5) Legal process.--The term `legal process' means any 
     writ, order, summons, or other similar process in the nature 
     of garnishment--
       ``(A) which is issued by--
       ``(i) a court of competent jurisdiction in any State, 
     territory, or possession of the United States;
       ``(ii) a court of competent jurisdiction in any foreign 
     country with which the United States has entered into an 
     agreement which requires the United States to honor the 
     process; or
       ``(iii) an authorized official pursuant to an order of such 
     a court of competent jurisdiction or pursuant to State or 
     local law; and
       ``(B) which is directed to, and the purpose of which is to 
     compel, a governmental entity which holds moneys which are 
     otherwise payable to an individual to make a payment from the 
     moneys to another party in order to satisfy a legal 
     obligation of the individual to provide child support or make 
     alimony payments.''.
       (b) Conforming Amendments.--
       (1) To part d of title iv.--Sections 461 and 462 (42 U.S.C. 
     661 and 662) are repealed.
       (2) To title 5, united states code.--Section 5520a of title 
     5, United States Code, is amended, in subsections (h)(2) and 
     (i), by striking ``sections 459, 461, and 462 of the Social 
     Security Act (42 U.S.C. 659, 661, and 662)'' and inserting 
     ``section 459 of the Social Security Act (42 U.S.C. 659)''.
       (c) Military Retired and Retainer Pay.--
       (1) Definition of court.--Section 1408(a)(1) of title 10, 
     United States Code, is amended--
       (A) by striking ``and'' at the end of subparagraph (B);
       (B) by striking the period at the end of subparagraph (C) 
     and inserting ``; and''; and
       (C) by adding after subparagraph (C) the following new 
     subparagraph:
       ``(D) any administrative or judicial tribunal of a State 
     competent to enter orders for support or maintenance 
     (including a State agency administering a program under a 
     State plan approved under part D of title IV of the Social 
     Security Act), and, for purposes of this subparagraph, the 
     term `State' includes the District of Columbia, the 
     Commonwealth of Puerto Rico, the Virgin Islands, Guam, and 
     American Samoa.''.
       (2) Definition of court order.--Section 1408(a)(2) of such 
     title is amended by inserting ``or a court order for the 
     payment of child support not included in or accompanied by 
     such a decree or settlement,'' before ``which--''.
       (3) Public payee.--Section 1408(d) of such title is 
     amended--
       (A) in the heading, by inserting ``(or for Benefit of)'' 
     before ``Spouse or''; and
       (B) in paragraph (1), in the 1st sentence, by inserting 
     ``(or for the benefit of such spouse or former spouse to a 
     State disbursement unit established pursuant to section 454B 
     of the Social Security Act or other public payee designated 
     by a State, in accordance with part D of title IV of the 
     Social Security Act, as directed by court order, or as 
     otherwise directed in accordance with such part D)'' before 
     ``in an amount sufficient''.
       (4) Relationship to part d of title iv.--Section 1408 of 
     such title is amended by adding at the end the following new 
     subsection:
       ``(j) Relationship to Other Laws.--In any case involving an 
     order providing for payment of child support (as defined in 
     section 459(i)(2) of the Social Security Act) by a member who 
     has never been married to the other parent of the child, the 
     provisions of this section shall not apply, and the case 
     shall be subject to the provisions of section 459 of such 
     Act.''.
       (d) Effective Date.--The amendments made by this section 
     shall become effective 6 months after the date of the 
     enactment of this Act.

     SEC. 464. ENFORCEMENT OF CHILD SUPPORT OBLIGATIONS OF MEMBERS 
                   OF THE ARMED FORCES.

       (a) Availability of Locator Information.--
       (1) Maintenance of address information.--The Secretary of 
     Defense shall establish a centralized personnel locator 
     service that includes the address of each member of the Armed 
     Forces under the jurisdiction of the Secretary. Upon request 
     of the Secretary of Transportation, addresses for members of 
     the Coast Guard shall be included in the centralized 
     personnel locator service.

[[Page S11600]]

       (2) Type of address.--
       (A) Residential address.--Except as provided in 
     subparagraph (B), the address for a member of the Armed 
     Forces shown in the locator service shall be the residential 
     address of that member.
       (B) Duty address.--The address for a member of the Armed 
     Forces shown in the locator service shall be the duty address 
     of that member in the case of a member--
       (i) who is permanently assigned overseas, to a vessel, or 
     to a routinely deployable unit; or
       (ii) with respect to whom the Secretary concerned makes a 
     determination that the member's residential address should 
     not be disclosed due to national security or safety concerns.
       (3) Updating of locator information.--Within 30 days after 
     a member listed in the locator service establishes a new 
     residential address (or a new duty address, in the case of a 
     member covered by paragraph (2)(B)), the Secretary concerned 
     shall update the locator service to indicate the new address 
     of the member.
       (4) Availability of information.--The Secretary of Defense 
     shall make information regarding the address of a member of 
     the Armed Forces listed in the locator service available, on 
     request, to the Federal Parent Locator Service established 
     under section 453 of the Social Security Act.
       (b) Facilitating Granting of Leave for Attendance at 
     Hearings.--
       (1) Regulations.--The Secretary of each military 
     department, and the Secretary of Transportation with respect 
     to the Coast Guard when it is not operating as a service in 
     the Navy, shall prescribe regulations to facilitate the 
     granting of leave to a member of the Armed Forces under the 
     jurisdiction of that Secretary in a case in which--
       (A) the leave is needed for the member to attend a hearing 
     described in paragraph (2);
       (B) the member is not serving in or with a unit deployed in 
     a contingency operation (as defined in section 101 of title 
     10, United States Code); and
       (C) the exigencies of military service (as determined by 
     the Secretary concerned) do not otherwise require that such 
     leave not be granted.
       (2) Covered hearings.--Paragraph (1) applies to a hearing 
     that is conducted by a court or pursuant to an administrative 
     process established under State law, in connection with a 
     civil action--
       (A) to determine whether a member of the Armed Forces is a 
     natural parent of a child; or
       (B) to determine an obligation of a member of the Armed 
     Forces to provide child support.
       (3) Definitions.--For purposes of this subsection:
       (A) The term ``court'' has the meaning given that term in 
     section 1408(a) of title 10, United States Code.
       (B) The term ``child support'' has the meaning given such 
     term in section 459(i) of the Social Security Act (42 U.S.C. 
     659(i)).
       (c) Payment of Military Retired Pay in Compliance With 
     Child Support Orders.--
       (1) Date of certification of court order.--Section 1408 of 
     title 10, United States Code, as amended by section 463(c)(4) 
     of this Act, is amended--
       (A) by redesignating subsections (i) and (j) as subsections 
     (j) and (k), respectively; and
       (B) by inserting after subsection (h) the following new 
     subsection:
       ``(i) Certification Date.--It is not necessary that the 
     date of a certification of the authenticity or completeness 
     of a copy of a court order for child support received by the 
     Secretary concerned for the purposes of this section be 
     recent in relation to the date of receipt by the 
     Secretary.''.
       (2) Payments consistent with assignments of rights to 
     states.--Section 1408(d)(1) of such title is amended by 
     inserting after the 1st sentence the following: ``In the case 
     of a spouse or former spouse who assigns to a State the 
     rights of the spouse or former spouse to receive support, the 
     Secretary concerned may make the child support payments 
     referred to in the preceding sentence to that State in 
     amounts consistent with that assignment of rights.''.
       (3) Arrearages owed by members of the uniformed services.--
     Section 1408(d) of such title is amended by adding at the end 
     the following new paragraph:
       ``(6) In the case of a court order for which effective 
     service is made on the Secretary concerned on or after the 
     date of the enactment of this paragraph and which provides 
     for payments from the disposable retired pay of a member to 
     satisfy the amount of child support set forth in the order, 
     the authority provided in paragraph (1) to make payments from 
     the disposable retired pay of a member to satisfy the amount 
     of child support set forth in a court order shall apply to 
     payment of any amount of child support arrearages set forth 
     in that order as well as to amounts of child support that 
     currently become due.''.
       (4) Payroll deductions.--The Secretary of Defense shall 
     begin payroll deductions within 30 days after receiving 
     notice of withholding, or for the 1st pay period that begins 
     after such 30-day period.

     SEC. 465. VOIDING OF FRAUDULENT TRANSFERS.

       Section 466 (42 U.S.C. 666), as amended by section 421 of 
     this Act, is amended by adding at the end the following new 
     subsection:
       ``(g) In order to satisfy section 454(20)(A), each State 
     must have in effect--
       ``(1)(A) the Uniform Fraudulent Conveyance Act of 1981;
       ``(B) the Uniform Fraudulent Transfer Act of 1984; or
       ``(C) another law, specifying indicia of fraud which create 
     a prima facie case that a debtor transferred income or 
     property to avoid payment to a child support creditor, which 
     the Secretary finds affords comparable rights to child 
     support creditors; and
       ``(2) procedures under which, in any case in which the 
     State knows of a transfer by a child support debtor with 
     respect to which such a prima facie case is established, the 
     State must--
       ``(A) seek to void such transfer; or
       ``(B) obtain a settlement in the best interests of the 
     child support creditor.''.

     SEC. 466. WORK REQUIREMENT FOR PERSONS OWING CHILD SUPPORT.

       Section 466(a) of the Social Security Act (42 U.S.C. 
     666(a)), as amended by sections 401(a), 415, 417(a), and 423 
     of this Act, is amended by adding at the end the following 
     new paragraph:
       ``(16) Procedures requiring the State, in any case in which 
     an individual owes support with respect to a child receiving 
     services under this part, to seek a court order or 
     administrative order that requires the individual to--
       ``(A) pay such support in accordance with a plan approved 
     by the court; or
       ``(B) if the individual is not working and is not 
     incapacitated, participate in work activities (including, at 
     State option, work activities as defined in section 482) as 
     the court deems appropriate.''.

     SEC. 467. DEFINITION OF SUPPORT ORDER.

       Section 453 (42 U.S.C. 653) as amended by sections 416 and 
     446(b) of this Act, is amended by adding at the end the 
     following new subsection:
       ``(o) As used in this part, the term `support order' means 
     a judgment, decree, or order, whether temporary, final, or 
     subject to modification, issued by a court or an 
     administrative agency of competent jurisdiction, for the 
     support and maintenance of a child, including a child who has 
     attained the age of majority under the law of the issuing 
     State, or a child and the parent with whom the child is 
     living, which provides for monetary support, health care, 
     arrearages, or reimbursement, and which may include related 
     costs and fees, interest and penalties, income withholding, 
     attorneys' fees, and other relief.''.

     SEC. 468. REPORTING ARREARAGES TO CREDIT BUREAUS.

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

     SEC. 469. LIENS.

       Section 466(a)(4) (42 U.S.C. 666(a)(4)) is amended to read 
     as follows:
       ``(4) Procedures under which--
       ``(A) liens arise by operation of law against real and 
     personal property for amounts of overdue support owed by an 
     absent parent who resides or owns property in the State; and
       ``(B) the State accords full faith and credit to liens 
     described in subparagraph (A) arising in another State, 
     without registration of the underlying order.''.
     SEC. 470. STATE LAW AUTHORIZING SUSPENSION OF LICENSES.

       Section 466(a) (42 U.S.C. 666(a)), as amended by sections 
     415, 417(a), and 423 of this Act, is amended by adding at the 
     end the following new paragraph:
       ``(15) Procedures under which the State has (and uses in 
     appropriate cases) authority to withhold or suspend, or to 
     restrict the use of driver's licenses, professional and 
     occupational licenses, and recreational licenses of 
     individuals owing overdue support or failing, after receiving 
     appropriate notice, to comply with subpoenas or warrants 
     relating to paternity or child support proceedings.''.

     SEC. 471. DENIAL OF PASSPORTS FOR NONPAYMENT OF CHILD 
                   SUPPORT.

       (a) HHS Certification Procedure.--
       (1) Secretarial responsibility.--Section 452 (42 U.S.C. 
     652), as amended by section 446, is amended by adding at the 
     end the following new subsection:
       ``(k)(1) If the Secretary receives a certification by a 
     State agency in accordance with the requirements of section 
     454(30) that an individual owes arrearages of child support 
     in an amount exceeding $5,000 or in an amount exceeding 24 
     months' worth of child support, the Secretary shall transmit 
     such certification to the Secretary of State for action (with 
     respect to denial, revocation, or limitation of passports) 
     pursuant to section 471(b) of the Family Self-Sufficiency Act 
     of 1995.
       ``(2) The Secretary shall not be liable to an individual 
     for any action with respect to a certification by a State 
     agency under this section.''.
       (2) State cse agency responsibility.--Section 454 (42 
     U.S.C. 654), as amended by sections 404(a), 412(b), 413(a), 
     433, and 444(a), is amended--
       (A) by striking ``and'' at the end of paragraph (28);
       (B) by striking the period at the end of paragraph (29) and 
     inserting ``; and''; and
       (C) by adding after paragraph (29) the following new 
     paragraph:
       ``(30) provide that the State agency will have in effect a 
     procedure (which may be combined with the procedure for tax 
     refund offset under section 464) for certifying to the 
     Secretary, for purposes of the procedure under section 452(k) 
     (concerning denial of passports) determinations that 
     individuals owe arrearages of child support 

[[Page S11601]]
     in an amount exceeding $5,000 or in an amount exceeding 24 months' 
     worth of child support, under which procedure--
       ``(A) each individual concerned is afforded notice of such 
     determination and the consequences thereof, and an 
     opportunity to contest the determination; and
       ``(B) the certification by the State agency is furnished to 
     the Secretary in such format, and accompanied by such 
     supporting documentation, as the Secretary may require.''.
       (b) State Department Procedure for Denial of Passports.--
       (1) In general.--The Secretary of State, upon certification 
     by the Secretary of Health and Human Services, in accordance 
     with section 452(k) of the Social Security Act, that an 
     individual owes arrearages of child support in excess of 
     $5,000 or in an amount exceeding 24 months' worth of child 
     support, shall refuse to issue a passport to such individual, 
     and may revoke, restrict, or limit a passport issued 
     previously to such individual.
       (2) Limit on liability.--The Secretary of State shall not 
     be liable to an individual for any action with respect to a 
     certification by a State agency under this section.
       (c) Effective Date.--This section and the amendments made 
     by this section shall become effective October 1, 1996.
                      Subtitle H--Medical Support

     SEC. 475. TECHNICAL CORRECTION TO ERISA DEFINITION OF MEDICAL 
                   CHILD SUPPORT ORDER.

       (a) In General.--Section 609(a)(2)(B) of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 
     1169(a)(2)(B)) is amended--
       (1) by striking ``issued by a court of competent 
     jurisdiction'';
       (2) by striking the period at the end of clause (ii) and 
     inserting a comma; and
       (3) by adding, after and below clause (ii), the following:
     ``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.''.
       (b) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     take effect on the date of the enactment of this Act.
       (2) Plan amendments not required until january 1, 1996.--
     Any amendment to a plan required to be made by an amendment 
     made by this section shall not be required to be made before 
     the 1st plan year beginning on or after January 1, 1996, if--
       (A) during the period after the date before the date of the 
     enactment of this Act and before such 1st plan year, the plan 
     is operated in accordance with the requirements of the 
     amendments made by this section; and
       (B) such plan amendment applies retroactively to the period 
     after the date before the date of the enactment of this Act 
     and before such 1st plan year.
     A plan shall not be treated as failing to be operated in 
     accordance with the provisions of the plan merely because it 
     operates in accordance with this paragraph.

     SEC. 476. ENFORCEMENT OF ORDERS FOR HEALTH CARE COVERAGE.

       Section 466(a) (42 U.S.C. 666(a)), as amended by sections 
     415, 417(a), 423, and 469 of this Act, is amended by adding 
     at the end the following new paragraph:
       ``(16) Procedures under which all child support orders 
     enforced under this part shall include a provision for the 
     health care coverage of the child, and in the case in which 
     an absent parent provides such coverage and changes 
     employment, and the new employer provides health care 
     coverage, the State agency shall transfer notice of the 
     provision to the employer, which notice shall operate to 
     enroll the child in the absent parent's health plan, unless 
     the absent parent contests the notice.''.
Subtitle I--Enhancing Responsibility and Opportunity for Nonresidential 
                                Parents

     SEC. 481. GRANTS TO STATES FOR ACCESS AND VISITATION 
                   PROGRAMS.

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

     ``SEC. 469A. GRANTS TO STATES FOR ACCESS AND VISITATION 
                   PROGRAMS.

       ``(a) In General.--The Administration for Children and 
     Families shall make grants under this section to enable 
     States to establish and administer programs to support and 
     facilitate absent parents' access to and visitation of their 
     children, by means of activities including mediation (both 
     voluntary and mandatory), counseling, education, development 
     of parenting plans, visitation enforcement (including 
     monitoring, supervision and neutral drop-off and pickup), and 
     development of guidelines for visitation and alternative 
     custody arrangements.
       ``(b) Amount of Grant.--The amount of the grant to be made 
     to a State under this section for a fiscal year shall be an 
     amount equal to the lesser of--
       ``(1) 90 percent of State expenditures during the fiscal 
     year for activities described in subsection (a); or
       ``(2) the allotment of the State under subsection (c) for 
     the fiscal year.
       ``(c) Allotments to States.--
       ``(1) In general.--The allotment of a State for a fiscal 
     year is the amount that bears the same ratio to the amount 
     appropriated for grants under this section for the fiscal 
     year as the number of children in the State living with only 
     1 biological parent bears to the total number of such 
     children in all States.
       ``(2) Minimum allotment.--The Administration for Children 
     and Families shall adjust allotments to States under 
     paragraph (1) as necessary to ensure that no State is 
     allotted less than--
       ``(A) $50,000 for fiscal year 1996 or 1997; or
       ``(B) $100,000 for any succeeding fiscal year.
       ``(d) No Supplantation of State Expenditures for Similar 
     Activities.--A State to which a grant is made under this 
     section may not use the grant to supplant expenditures by the 
     State for activities specified in subsection (a), but shall 
     use the grant to supplement such expenditures at a level at 
     least equal to the level of such expenditures for fiscal year 
     1995.
       ``(e) State Administration.--Each State to which a grant is 
     made under this section--
       ``(1) may administer State programs funded with the grant, 
     directly or through grants to or contracts with courts, local 
     public agencies, or nonprofit private entities;
       ``(2) shall not be required to operate such programs on a 
     statewide basis; and
       ``(3) shall monitor, evaluate, and report on such programs 
     in accordance with regulations prescribed by the 
     Secretary.''.
                    Subtitle J--Effect of Enactment

     SEC. 491. EFFECTIVE DATES.

       (a) In General.--Except as otherwise specifically provided 
     (but subject to subsections (b) and (c))--
       (1) the provisions of this title requiring the enactment or 
     amendment of State laws under section 466 of the Social 
     Security Act, or revision of State plans under section 454 of 
     such Act, shall be effective with respect to periods 
     beginning on and after October 1, 1996; and
       (2) all other provisions of this title shall become 
     effective upon the date of the enactment of this Act.
       (b) Grace Period for State Law Changes.--The provisions of 
     this title shall become effective with respect to a State on 
     the later of--
       (1) the date specified in this title, or
       (2) the effective date of laws enacted by the legislature 
     of such State implementing such provisions,
     but in no event later than the 1st day of the 1st calendar 
     quarter beginning after the close of the 1st regular session 
     of the State legislature that begins after the date of the 
     enactment of this Act. For purposes of the previous sentence, 
     in the case of a State that has a 2-year legislative session, 
     each year of such session shall be deemed to be a separate 
     regular session of the State legislature.
       (c) Grace Period for State Constitutional Amendment.--A 
     State shall not be found out of compliance with any 
     requirement enacted by this title if the State is unable to 
     so comply without amending the State constitution until the 
     earlier of--
       (1) 1 year after the effective date of the necessary State 
     constitutional amendment; or
       (2) 5 years after the date of the enactment of this title.
       Amend the title so as to read: ``An Act to enhance support 
     and work opportunities for families with children, reduce 
     welfare dependence, and control welfare spending.''.
  Mr. DOLE. There is an old saying that ``everybody talks about the 
weather, but nobody does anything about it.''
  For the past several years, that saying could also apply to welfare 
reform. Everyone talked about it, but nobody did anything about it that 
really mattered.
  That will change Monday, when we begin serious debate. In fact, it 
will change today because we will introduce the substitute here in a 
moment. But on Monday, the Senate will begin serious debate on the Work 
Opportunity Act of 1995.
  There is a true national consensus to transform welfare from a 
program that does not work into one that does. It is my intention that 
once the Senate begins to talk about welfare reform, we will continue 
until we actually have done something about it. And when all the 
talking is done, I believe we will pass legislation that will transform 
welfare from a failed system into one that succeeds in providing work, 
hope, and opportunity for many, many Americans in need.
  At the center of our debate will be the legislation introduced this 
week by 33 Senate Republicans including the entire Senate Republican 
leadership. I am also very proud that our legislation has the support 
of a majority of America's Governors. Hopefully, it is bipartisan, but 
I can say that there are 30 Republican Governors out of the 50 States, 
and 30 Republican Governors represent 70 percent of the people in 
America, and every one of the 30 Republican Governors support our 
legislation.
  Our bill is based on three conservative principles:
  First and foremost, welfare reform should be designed and run by 
those closest to the problem--the States. Not by Washington, not by 
some faceless, nameless bureaucrat but by the States, by the State 
legislators and by the Governors and the people they appoint. We 
believe this is the key to true conservative reform. The Congress has 
dedicated itself to restoring the 10th amendment to the Constitution 
and to getting the Federal Government out of the mandate business, and 
States should not have to play a game of 

[[Page S11602]]
``mother may I'' with the Federal Government when it comes to welfare.
  Second: Welfare programs should include a real work requirement which 
in no uncertain terms requires able-bodied welfare recipients to find a 
job rather than to stay at home or stay in a training program forever. 
And make no mistake about it; our legislation contains real work 
requirements.
  And third: No program with an unlimited budget will ever be made to 
work effectively and efficiently. Therefore, we must put a cap on 
welfare spending.
  We will be discussing those principles in greater detail during the 
debate. I believe the entire Senate, Republicans and Democrats, begins 
this debate united in many ways. We begin united in the knowledge that 
our current welfare system is broke, and we begin united in a 
commitment to fix it.
  We have made valiant efforts in the past. And I see my colleague from 
New York who is the expert on welfare and has been for some 30 years in 
my memory and who has made a lot of suggestions that had we followed 
years ago, we would not be in the trouble we are today; they were not 
followed. I hope that he will enlist in our efforts to make some rather 
radical changes.
  That is not to say we are not going to have disagreements. I hope it 
is not going to be party line. In my view, the best we can do when it 
comes to the Work Opportunity Act of 1995, or whatever title other 
Members may have on their bills, is to work together, iron out some of 
the problems we have, and have a big vote for change in this Senate 
Chamber.
  There will be a number of close votes during the debate, but by 
remembering what unites us, I feel confident we will pass a bill with 
wide bipartisan support. I hope this is a bill we do not have to go 
through the cloture exercise; that we do not have a filibuster either 
by amendment or by intent because it seems to me if we have--I know 
Senator Packwood, the chairman of the Finance Committee, will be 
leading the debate on this side. He is a very early riser. He will be 
willing to start at 7, 6, 7:30, 8 o'clock, and so there will be--I do 
not know how many literally--not hundreds of hours but 40, 50, 60 hours 
of debate, so hopefully we can move very quickly once we start on 
Monday.


                           Amendment No. 2280

  Mr. DOLE. I send to the desk my amendment to the underlying bill, 
H.R. 4 in the form of a first-degree amendment.
  The PRESIDING OFFICER. The clerk will report.
  The assistant legislative clerk read as follows.

       The Senator from Kansas [Mr. Dole] proposes an amendment 
     numbered 2280.

  Mr. DOLE. Mr. President, I ask unanimous consent that reading of the 
amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment is as follows:
  (The amendment is printed in today's Record under ``Amendments 
Submitted.'')
  Mr. DOLE. I know the amendment is probably several hundred pages.
  The PRESIDING OFFICER. The Senator is correct.
  Mr. DOLE. I just say for the information of all Senators, my first-
degree amendment will be printed and available for all Members by late 
Monday morning. We believe we have introduced it in a way that when 
someone offers an amendment, they can be sure they are going to get a 
vote on their amendment. Nobody is going to be able to second degree 
it. If the Senator from New York has an amendment, there will be a vote 
on that amendment. It might be a tabling motion, but there will be a 
vote on or in relation to the amendment.
  So I think we are ready to go, and I know the Senator from New York 
has been waiting to make a statement. I appreciate his patience.
  Mr. MOYNIHAN. May I first thank the distinguished majority leader, 
the Republican leader, for the tone and the openness with which he 
begins once again a welfare debate.
  We did this 7 years ago with the Family Support Act of 1988. I had 
introduced it a year earlier.
  It was a bipartisan measure. It passed the Senate 96-1. President 
Reagan signed it in the company of the Governors who had been so much 
involved, then chairman of the association, Governor Clinton of 
Arkansas; the chairman of the committee of the Governors' Association 
concerned with this matter; then-Governor Castle of Delaware, now 
Representative Castle.
  I regret that the time now has seemingly come when we will be asked 
to put an end to the Federal commitment to sharing State efforts to 
provide for the dependent children. They are a massive number. They 
overwhelm the capacity of our great cities. Would the Senator from 
Kansas believe, for example, that in the city of Los Angeles, 62 
percent of all children are on AFDC, in Chicago 44 percent, in New York 
28 percent, and in Detroit 79 percent? This is beyond--this is a social 
experience which we have had, of which there is no counterpart.
  We put in place legislation in 1988, which has been working. States 
have been innovating. The results are beginning to appear. I will have 
a bill which is offered in the Finance Committee, the Family Support 
Act of 1995, bringing it up to date as I believe we should. The 
distinguished Democratic leader, with Senator Mikulski and Senator 
Breaux, will have measures. We will have amendments. We will have a 
good debate. It need not be an endless debate. I hope the outcome will 
be better than is now forecast. And we will see.
  Mr. President, I thank the Senate for giving me this time late in the 
day. I look forward to 10:30 on Monday morning when we will commence.
  I yield the floor.
  Mr. DOLE. I thank the Senator from New York.

                          ____________________