[Congressional Record Volume 143, Number 108 (Monday, July 28, 1997)]
[Senate]
[Pages S8187-S8190]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DODD:
  S. 1074. A bill to amend title IV of the Social Security Act to 
reform child support enforcement procedures; to the Committee on 
Finance.
  S. 1075. A bill to provide for demonstration projects to establish or 
improve a system of assured minimum child support payments; to the 
Committee on Finance.


                       CHILD SUPPORT LEGISLATION

  Mr. DODD. Mr. President, today I'm introducing two pieces of 
legislation intended to address the ongoing and utter failure of our 
Nation's child support efforts.
  Last week, the General Accounting Office released a long-awaited 
report on efforts to collect child support throughout the country. It 
paints a picture of a broken child support system:
  One where four out of five parents legally required to pay child 
support simply ignore court orders to do so; one where nearly three in 
four custodial parents--and their children--who receive no child 
support live in poverty (as of 1991); and one where a staggering $34 
billion in child support payments remain uncollected.
  The current system of child support is not just a failure by the 
States to collect money. It's a nationwide failure to care for 
America's children.
  Imagine what parents could do for their kids with these billions in 
unpaid child support obligations. Currently, Congress and the President 
are engaged in a heated debate over how to provide health insurance to 
the 10\1/2\ million kids who don't currently have it. We might not be 
having that debate if the child support system was working.
  Imagine how much better parents could prepare their children to get 
the right start in life. With each passing day, we are learning about 
how incredibly important the first years, months, even days of life are 
to a child's future well-being. Most importantly, they need what money 
can't buy: Love, affection, and attention--preferably by two parents 
rather than one. But they also need wholesome food, a clean and safe 
neighborhood, child care that nurtures rather than warehouses, and 
early learning that stretches young minds. Yet, nearly two in three--64 
percent--of children under the age of 6 who live only with their 
mothers live in poverty.
  For two decades, the Federal Government has tried to help States 
crack down on deadbeat parents. For two decades they have, by and 
large, failed to get the job done. It's time now to try a different 
approach.

  In 1975, we established the child support enforcement program, which 
paid the majority of the administrative and operating costs incurred by 
States in enforcing child support rules.
  In 1980, we passed legislation to help States pay to computerize 
child support orders.
  In 1988, we passed a law requiring States to establish computer 
registries, and committed $2.6 billion to the effort.
  We set a deadline of 1995 for implementation and certification of 
those registries. But only a handful of States met that deadline.
  So in 1995, we extended the deadline 2 years, to October 1, 1997. 
Yet, at this moment, only 15 States have met the requirements of 
certification. And GAO predicts many will not meet them by October 1--a 
result of mismanagement, interagency squabbles, and a failure to 
accurately assess the cost and complexity of computerizing child 
support enforcement.
  Note that Connecticut at the moment is conditionally certified. 
That's a nice way of saying that it's close to meeting the requirements 
of certification, but not there yet. And while there has been some 
improvement in enforcement efforts, overall our State's performance is 
weak by any standard. Some $663 million in child support obligations 
remain unpaid and uncollected. The child support payment rate in our 
State--the percentage of payments that are on time and in full--is only 
16 percent. That's below the national average.
  My legislation will do several things.
  First, and most importantly, it will federalize the child support 
system. It will make paying child support as much of an obligation as 
paying taxes. Instead of 50 or more entities struggling to create a 
coherent system of collection, we'll have one collector: the IRS. 
People may not like the IRS--but that's partly because it gets the job 
done. This bill creates a new child support enforcement division within 
the IRS, and allows the IRS to use its normal tax collection methods to 
collect child support. My legislation would also allow the use of 
Federal courts to enforce child support orders--which will immensely 
help track deadbeat parents across State lines. And it preserves the 
role of States in determining paternity and establishing child support 
orders in the first place.
  Second, this legislation tries a new approach to help States do a 
better job in child support enforcement. It's an approach that a number 
of States have tried with considerable success. It's called child 
support assurance. The bill I introduce today would provide 
demonstration grants to three, four, or five States. Those States would 
in turn guarantee child support payments each month to children and 
custodial parents. When this approach was tried in New York, a number 
of positive developments occurred. First, children got the support they 
needed. Second, welfare payments dropped. Third, New York could devote 
more resources to enforcing child support orders because it had to 
worry less about caring for parents and kids who weren't receiving 
child support payments. Overall, New York saved $10 for every $1 it 
invested in this program.
  Last week's GAO report demonstrates that it's time for our Nation to 
take a new approach in efforts to enforce child support obligations. 
This legislation can work. And now is the time to try it.
  Mr. President, I ask unanimous consent that these bills be printed in 
the Record.
  There being no objection, the bills were ordered to be printed in the 
Record, as follows:

                                S. 1074

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Child 
     Support Reform Act of 1997''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.

         TITLE I--NATIONAL CHILD SUPPORT GUIDELINES COMMISSION

Sec. 101. National Child Support Guidelines Commission.

            TITLE II--CENTRALIZED CHILD SUPPORT ENFORCEMENT

Sec. 201. Establishment of the Office of the Assistant Commissioner for 
              Centralized Child Support Enforcement.
Sec. 202. Use of Federal Case Registry of Child Support Orders and 
              National Directory of New Hires.
Sec. 203. Division of Enforcement.
Sec. 204. State plan requirements.
Sec. 205. Definitions.

                       TITLE III--EFFECTIVE DATES

Sec. 301. Effective dates.

[[Page S8188]]

     SEC. 2. FINDINGS AND PURPOSES.

       (a) Findings.--Congress finds that--
       (1) an increasing number of children are raised in families 
     with only one parent present, usually the mother, and these 
     families are 5 times as likely to be poor as 2-parent 
     families;
       (2) the failure of noncustodial parents to pay their fair 
     share of child support is a major contributor to poverty 
     among single-parent families;
       (3) in 1990, there was a $33,700,000,000 gap between the 
     amount of child support that was received and the amount that 
     could have been collected;
       (4) in 1991, the aggregate child support income deficit was 
     $5,800,000,000;
       (5) as of spring 1992, only 54 percent, or 6,200,000, of 
     custodial parents received awards of child support, and of 
     the 6,200,000 custodial parents awarded child support, 
     5,300,000 were supposed to receive child support payments in 
     1991;
       (6) of the custodial parents described in paragraph (5), 
     approximately \1/2\ of the parents due child support received 
     full payment and the remaining \1/2\ were divided equally 
     between those receiving partial payment (24 percent) and 
     those receiving nothing (25 percent);
       (7) as a result of the situation described in paragraphs 
     (5) and (6), increasing numbers of families are turning to 
     the child support program established under part D of title 
     IV of the Social Security Act (42 U.S.C. 651 et seq.) for 
     assistance, accounting for an over 40 percent increase in the 
     caseload under that program during the 1991 to 1995 period;
       (8) during the 1991 to 1995 period, the percentage of cases 
     under the title IV-D child support program in which a 
     collection was made declined from 19.3 percent to 18.9 
     percent;
       (9) the Internal Revenue Service has improved its 
     performance in making collections in cases referred to it by 
     the title IV-D child support program, moving from 
     successfully intercepting Federal income tax refunds in 
     992,000 cases in 1992 to successfully intercepting Federal 
     income tax refunds in 1,200,000 cases in 1996;
       (10) in cases under the title IV-D child support program in 
     which a collection is made, approximately \1/3\ of such cases 
     are cases where some or all of the collection is a result of 
     a Federal tax refund intercept;
       (11) in 1995, the average amount collected for families in 
     which the Internal Revenue Service made a collection through 
     the Federal tax refund intercept method was $827 for families 
     receiving Aid to Families with Dependent Children and $847 
     for other families; and
       (12) State-by-State child support guidelines have resulted 
     in orders that vary significantly from State to State, 
     resulting in low awards and inequities for children.
       (b) Purpose.--It is the purpose of this Act to--
       (1) provide for the review of various State child support 
     guidelines to determine how custodial parents and children 
     are served by such guidelines;
       (2) increase the economic security of children, improve the 
     enforcement of child support awards through a more 
     centralized, efficient system; and
       (3) improve the enforcement of child support orders by 
     placing responsibility for enforcement in the Internal 
     Revenue Service.
         TITLE I--NATIONAL CHILD SUPPORT GUIDELINES COMMISSION

     SEC. 101. NATIONAL CHILD SUPPORT GUIDELINES COMMISSION.

       (a) Establishment.--There is hereby established a 
     commission to be known as the ``National Child Support 
     Guidelines Commission'' (in this section referred to as the 
     ``Commission'').
       (b) General Duties.--The Commission shall study and 
     evaluate the various child support guidelines currently in 
     use by the States, identify the benefits and deficiencies of 
     such guidelines in providing adequate support for children, 
     and recommend any needed improvements.
       (c) Matters for Consideration by the Commission.--In making 
     the recommendations concerning guidelines required under 
     subsection (b), the Commission shall consider--
       (1) matters generally applicable to all support orders, 
     including--
       (A) the relationship between the guideline amounts and the 
     actual costs of raising children; and
       (B) how to define income and under what circumstances 
     income should be imputed;
       (2) 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;
       (3) 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);
       (4) the appropriate treatment of expenses for health care 
     (including uninsured health care) and other extraordinary 
     expenses for children with special needs;
       (5) the appropriate duration of support by 1 or both 
     parents, including
       (A) support (including shared support) for post-secondary 
     or vocational education; and
       (B) support for disabled adult children;
       (6) 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; and
       (7) 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, 
     1998, of which--
       (i) 2 shall be appointed by the Chairman of the Committee 
     on Finance of the Senate, and 1 shall be appointed by the 
     ranking minority member of the Committee;
       (ii) 2 shall be appointed by the Chairman of the Committee 
     on Ways and Means of the House of Representatives, and 1 
     shall be appointed by the ranking minority member of the 
     Committee; and
       (iii) 6 shall be appointed by the Secretary of Health and 
     Human Services.
       (B) Qualifications of members.--Members of the Commission 
     shall have expertise and experience in the evaluation and 
     development of child support guidelines. At least 1 member 
     shall represent advocacy groups for custodial parents, at 
     least 1 member shall represent advocacy groups for 
     noncustodial parents, and at least 1 member shall be the 
     director of a State program under part D of title IV of the 
     Social Security Act.
       (2) Terms of office.--Each member shall be appointed for a 
     term of 2 years. A vacancy in the Commission shall be filled 
     in the manner in which the original appointment was made.
       (e) Commission Powers, Compensation, Access to Information, 
     and Supervision.--The first sentence of subparagraph (C), the 
     first and third sentences of subparagraph (D), subparagraph 
     (F) (except with respect to the conduct of medical studies), 
     clauses (ii) and (iii) of subparagraph (G), and subparagraph 
     (H) of section 1886(e)(6) of the Social Security Act shall 
     apply to the Commission in the same manner in which such 
     provisions apply to the Prospective Payment Assessment 
     Commission.
       (f) Report.--Not later than 2 years after the appointment 
     of members, the Commission shall submit to the President, the 
     Committee on Ways and Means of the House of Representatives, 
     and the Committee on Finance of the Senate, a final 
     assessment of how States, through various child support 
     guideline models, are serving custodial parents and children.
       (g) Termination.--The Commission shall terminate 6 months 
     after the submission of the report described in subsection 
     (e).
            TITLE II--CENTRALIZED CHILD SUPPORT ENFORCEMENT

     SEC. 201. ESTABLISHMENT OF THE OFFICE OF THE ASSISTANT 
                   COMMISSIONER FOR CENTRALIZED CHILD SUPPORT 
                   ENFORCEMENT.

       (a) In General.--For purposes of locating absent parents 
     and facilitating the enforcement of child support 
     obligations, the Secretary of the Treasury shall establish 
     within the Internal Revenue Service an Office of the 
     Assistant Commissioner for Centralized Child Support 
     Enforcement which shall establish not later than October 1, 
     1997, a Division of Enforcement for the purpose of carrying 
     out the duties described in section 203.
       (b) Coordination.--The Secretary of the Treasury, in 
     consultation with the Secretary of Health and Human Services 
     shall issue regulations for the coordination of activities 
     among the Office of the Assistant Commissioner for 
     Centralized Child Support Enforcement, the Assistant 
     Secretary for Children and Families, and the States, to 
     facilitate the purposes of this title.

     SEC. 202. USE OF FEDERAL CASE REGISTRY OF CHILD SUPPORT 
                   ORDERS AND NATIONAL DIRECTORY OF NEW HIRES.

       Section 453(j)(2) of the Social Security Act (42 U.S.C. 
     653(j)(2)) is amended to read as follows:
       ``(2) Information comparisons.--
       ``(A) In general.--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--
       ``(i) 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
       ``(ii) within 2 business days after such a comparison 
     reveals a match with respect to an individual, report the 
     information to the Division of Enforcement for centralized 
     enforcement.
       ``(B) Cases referred to division of enforcement.--If a case 
     is referred to the Division of Enforcement by the Secretary 
     under subparagraph (A)(ii), the Division of Enforcement 
     shall--
       ``(i) notify the custodial and noncustodial parents of such 
     referral,
       ``(ii) direct the employer to remit all child support 
     payments to the Internal Revenue Service;
       ``(iii) receive all child support payments made pursuant to 
     the case;
       ``(iv) record such payments; and
       ``(v) promptly disburse the funds--

       ``(I) if there is an assignment of rights under section 
     408(a)(3), in accordance with section 457, and
       ``(II) in all other cases, to the custodial parent.''.

[[Page S8189]]

     SEC. 203. DIVISION OF ENFORCEMENT.

       (a) In General.--With respect to the Division of 
     Enforcement, the duties described in this section are as 
     follows:
       (1) Enforce all child support orders referred to the 
     Division of Enforcement--
       (A) under section 453(j)(2)(A)(ii) of the Social Security 
     Act (42 U.S.C. 653(j)(2)(A)(ii));
       (B) by the State in accordance with section 454(35) of such 
     Act (42 U.S.C. 654(35)); and
       (C) under section 452(b) of such Act (42 U.S.C. 652(b)).
       (2) Enforce a child support order in accordance with the 
     terms of the abstract contained in the Federal Case Registry 
     of Child Support Orders or the modified terms of such an 
     order upon notification of such modifications by the 
     Secretary of Health and Human Services.
       (3) Enforce medical support provisions of any child support 
     order using any means available under State or Federal law.
       (4) Receive and process requests for a Federal income tax 
     refund intercept made in accordance with section 464 of the 
     Social Security Act (42 U.S.C. 664).
       (b) Failure To Pay Amount Owing.--With respect to any child 
     support order being enforced by the Division of Enforcement, 
     if an individual fails to pay the full amount required to be 
     paid on or before the due date for such payment, the Office 
     of the Assistant Commissioner for Centralized Child Support 
     Enforcement, through the Division of Enforcement, may assess 
     and collect the unpaid amount in the same manner, with the 
     same powers, and subject to the same limitations applicable 
     to a tax imposed by subtitle C of the Internal Revenue Code 
     of 1986 the collection of which would be jeopardized by 
     delay.
       (c) Use of Federal Courts.--The Office of the Assistant 
     Commissioner for Centralized Child Support Enforcement, 
     through the Division of Enforcement, may utilize the courts 
     of the United States to enforce child support orders against 
     absent parents upon a finding that--
       (1) the order is being enforced by the Division of 
     Enforcement; and
       (2) utilization of such courts is a reasonable method of 
     enforcing the child support order.
       (d) Conforming Amendments.--
       (1) Section 452(a)(8) (42 U.S.C. 652(a)(8)) is repealed.
       (2) Section 452(c) (42 U.S.C. 652(c)) is repealed.

     SEC. 204. STATE PLAN REQUIREMENTS.

       (a) In General.--Section 454 of the Social Security Act (42 
     U.S.C. 654) is amended by striking ``and'' at the end of 
     paragraph (32), by striking the period at the end of 
     paragraph (33) and inserting ``; and'', and by inserting 
     after paragraph (33) the following new paragraph:
       ``(34) provide that the State will cooperate with the 
     Office of the Assistant Commissioner for Centralized Child 
     Support Enforcement to facilitate the exchange of information 
     regarding child support cases and the enforcement of orders 
     by the Commissioner.''.
       (b) Conforming Amendment.--Section 455(b) of the Social 
     Security Act (42 U.S.C. 655(b)) is amended by striking 
     ``454(34)'' and inserting ``454(33)''.

     SEC. 205. DEFINITIONS.

       Any term used in this title which is also used in part D of 
     title IV of the Social Security Act (42 U.S.C. 651 et seq.) 
     shall have the meaning given such term by such part.
                       TITLE III--EFFECTIVE DATES

     SEC. 301. EFFECTIVE DATES.

       (a) In General.--Except as otherwise provided in this Act 
     or subsection (b), the amendments made by this Act take 
     effect on the date of enactment of this Act.
       (b) Special Rule.--In the case of a State that the 
     Secretary of Health and Human Services determines requires 
     State legislation (other than legislation appropriating 
     funds) in order to meet the additional requirements imposed 
     by the amendments made by this Act, the State shall not be 
     regarded as failing to comply with the requirements of such 
     amendments before the first day of the first calendar quarter 
     beginning after the close of the first regular session of the 
     State legislature that begins after the date of enactment of 
     this Act. For purposes of this subsection, in the case of a 
     State that has a 2-year legislative session, each year of the 
     session shall be treated as a separate regular session of the 
     State legislature.
                                                                    ____


                                S. 1075

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Child Support Assurance Act 
     of 1997''.

     SEC. 2. FINDINGS AND PURPOSES.

       (a) Findings.--Congress finds the following:
       (1) Increasingly, children are raised in families with only 
     1 parent present, usually the mother, and these single-parent 
     families are 5 times as likely to be poor as 2-parent 
     families.
       (2) The failure of noncustodial parents to pay their fair 
     share of child support is a significant contributor to 
     poverty among single-parent families.
       (3) In 1990, there was a $33,700,000,000 gap between the 
     amount of child support that was received and the amount that 
     could have been collected.
       (4) In 1991, the aggregate child support income deficit was 
     $5,800,000,000.
       (5) As of spring 1992, only 54 percent, or 6,200,000, of 
     custodial parents received awards of child support. Of the 
     6,200,000 custodial parents awarded child support, 5,300,000 
     were supposed to receive child support payments in 1991. 
     Approximately \1/2\ of the parents due child support received 
     full payment; the remaining \1/2\ were divided equally 
     between those receiving partial payment (24 percent) and 
     those receiving nothing (25 percent).
       (6) Custodial parents who are poor are much more likely to 
     receive no child support. Of the 3,700,000 custodial parents 
     who were poor in 1991, over \3/4\ received no child support. 
     Only 34 percent of poor custodial parents had child support 
     awards and were supposed to receive child support payments in 
     1991. Of those parents, only 40 percent received full 
     payment, 29 percent received partial payment, and 32 percent 
     received nothing.
       (7) The percentage of poor women who were awarded child 
     support in 1991, 39 percent, was significantly lower than the 
     65 percent award rate for nonpoor women.
       (8) Families fare better with child support than without 
     that support. In 1991, 43 percent of custodial parents who 
     did not have child support orders were poor.
       (9) In 1991, the average total money income of custodial 
     parents receiving child support due was 21 percent higher 
     than that received by parents who did not receive child 
     support due and was 45 percent higher than that received by 
     custodial parents with no child support award at all.
       (b) Purposes.--The purposes of this Act are to enable 
     participating States to establish child support assurance 
     systems in order to improve the economic circumstances of 
     children who do not receive a minimum level of child support 
     in a given month from the noncustodial parents of such 
     children, to strengthen the establishment and enforcement of 
     child support awards, and to promote work by custodial and 
     noncustodial parents.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Child.--The term ``child'' means an individual who is 
     of such an age, disability, or educational status as to be 
     eligible for child support as provided for by law.
       (2) Eligible child.--The term ``eligible child'' means a 
     child--
       (A) who is not currently receiving cash assistance under 
     the State program funded under part A of title IV of the 
     Social Security Act (42 U.S.C. 601 et seq.);
       (B) who meets the eligibility requirements established by 
     the State for participation in a project administered under 
     this section; and
       (C) who is the subject of a support order, as defined in 
     section 453(p) of the Social Security Act (42 U.S.C. 653(p)), 
     or for which good cause exists, as determined by the 
     appropriate State agency under section 454(29)(A) of such Act 
     (42 U.S.C. 654(29)(A)), for not having or pursuing a support 
     order.
       (3) Secretary.--The term ``Secretary'' means the Secretary 
     of Health and Human Services.

     SEC. 4. ESTABLISHMENT OF CHILD SUPPORT ASSURANCE 
                   DEMONSTRATION PROJECTS.

       (a) Demonstrations Authorized.--The Secretary shall make 
     grants to not less than 3 and not more than 5 States to 
     conduct demonstration projects for the purpose of 
     establishing or improving a system of an assured minimum 
     child support payment to an eligible child in accordance with 
     this section.
       (b) Application and Selection.--
       (1) Application requirements.--An application for a grant 
     under this section shall be submitted by the Chief Executive 
     Officer of a State and shall--
       (A) contain a description of the proposed child support 
     assurance project to be established, implemented, or improved 
     using amounts provided under this section, including the 
     level of the assured minimum child support payment to be 
     provided and the agencies that will be involved;
       (B) specify whether the project will be carried out 
     throughout the State or in limited areas of the State;
       (C) specify the level of income, if any, at which a 
     recipient or applicant will be ineligible for an assured 
     minimum child support payment under the project;
       (D) estimate the number of children who will be eligible 
     for assured minimum child support payments under the project;
       (E) contain a description of the work requirements, if any, 
     for noncustodial parents whose children are participating in 
     the project;
       (F) contain a commitment by the State to carry out the 
     project during a period of not less than 3 and not more than 
     5 consecutive fiscal years beginning with fiscal year 1998; 
     and
       (G) contain such other information as the Secretary may 
     require by regulation.
       (2) Selection criteria.--The Secretary shall consider 
     geographic diversity in the selection of States to conduct a 
     demonstration project under this section, and any other 
     criteria that the Secretary determines will contribute to the 
     achievement of the purposes of this Act.
       (c) Use of Funds.--A State shall use amounts provided under 
     a grant awarded under this section to carry out a child 
     support assurance project that is designed to provide a 
     minimum monthly child support payment for each eligible child 
     participating

[[Page S8190]]

     in the project to the extent that such minimum child support 
     is not paid in a month by the noncustodial parent.
       (d) Treatment of Child Support Payment.--Any assured 
     minimum child support payment received by an individual under 
     this Act shall be considered child support for purposes of 
     determining the treatment of such payment under--
       (1) the Internal Revenue Code of 1986; and
       (2) any eligibility requirements for any means-tested 
     program of assistance.
       (e) Duration.--A demonstration project conducted under this 
     section shall commence on October 1, 1997, and shall be 
     conducted for not less than 3 and not more than 5 consecutive 
     fiscal years, except that the Secretary may terminate a 
     project before the end of such period if the Secretary 
     determines that the State conducting the project is not in 
     compliance with the terms of the application approved by the 
     Secretary under this section.
       (f) Evaluations and Reports.--
       (1) State evaluations.--
       (A) In general.--Each State administering a demonstration 
     project under this section shall--
       (i) provide for evaluation of the project, meeting such 
     conditions and standards as the Secretary may require; and
       (ii) submit to the Secretary reports, at the times and in 
     the formats as the Secretary may require, and containing any 
     information (in addition to the information required under 
     subparagraph (B)) as the Secretary may require.
       (B) Required information.--A report submitted under 
     subparagraph (A)(ii) shall include information on and 
     analysis of the effect of the project with respect to--
       (i) the amount of child support collected for project 
     recipients;
       (ii) the economic circumstances and work efforts of 
     custodial parents;
       (iii) the work efforts of noncustodial parents;
       (iv) the rate of compliance by noncustodial parents with 
     support orders;
       (v) project recipients' need for assistance under means-
     tested assistance programs other than the project 
     administered under this section; and
       (vi) any other matters that the Secretary may specify.
       (C) Methodology.--Information required under this paragraph 
     shall be collected through the use of scientifically 
     acceptable sampling methods.
       (2) Reports to congress.--The Secretary shall, on the basis 
     of reports received from States administering projects under 
     this section, submit interim reports, and, not later than 6 
     months after the conclusion of all projects administered 
     under this section, a final report to Congress. A report 
     submitted under this paragraph shall contain an assessment of 
     the effectiveness of the State projects administered under 
     this section and any recommendations for legislative action 
     that the Secretary considers appropriate.
       (g) Funding Limits; Pro Rata Reductions of State 
     Matching.--
       (1) Funds available.--There shall be available to the 
     Secretary, from amounts made available to carry out part D of 
     title IV of the Social Security Act, for purposes of carrying 
     out demonstration projects under this section, amounts not to 
     exceed--
       (A) $27,000,000 for fiscal year 1998;
       (B) $55,000,000 for fiscal year 1999; and
       (C) $70,000,000 for each of fiscal years 2000 through 2003.
       (2) Pro rata reductions.--The Secretary shall make pro rata 
     reductions in the amounts otherwise payable to States under 
     this section as necessary to comply with the funding 
     limitation specified in paragraph (1).

     SEC. 5. MANDATORY REVIEW AND ADJUSTMENT OF CHILD SUPPORT 
                   ORDERS FOR TANF RECIPIENTS.

       Section 466(a)(10) of the Social Security Act (42 U.S.C. 
     666(a)(10)) is amended--
       (1) in subparagraph (A)(i), by striking ``or, if there is 
     an assignment under part A, upon the request of the State 
     agency under the State plan or of either parent,''; and
       (2) by adding at the end the following:
       ``(D) Mandatory 3-year review for part a assignments.--
     Procedures under which the State shall conduct the review 
     under subparagraph (A) and make any appropriate adjustments 
     under such subparagraph not less than every 3 years in the 
     case of an assignment under part A.''.
                                 ______