[105th Congress Public Law 200]
[From the U.S. Government Printing Office]


<DOC>
[DOCID: f:publ200.105]


[[Page 112 STAT. 645]]

Public Law 105-200
105th Congress

                                 An Act


 
To provide for an alternative penalty procedure for States that fail to 
   meet Federal child support data processing requirements, to reform 
 Federal incentive payments for effective child support performance, to 
 provide for a more flexible penalty procedure for States that violate 
        interjurisdictional adoption requirements, and for other 
            purposes. <<NOTE: July 16, 1998 -  [H.R. 3130]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress <<NOTE: Child Support Performance 
and Incentive Act of 1998.>> assembled,

SECTION 1. SHORT <<NOTE: 42 USC 1305 note.>> TITLE.

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

SEC. 2. TABLE OF CONTENTS.

    The table of contents of this Act is as follows:

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

           TITLE I--CHILD SUPPORT DATA PROCESSING REQUIREMENTS

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

                TITLE II--CHILD SUPPORT INCENTIVE SYSTEM

Sec. 201. Incentive payments to States.

                     TITLE III--ADOPTION PROVISIONS

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

                         TITLE IV--MISCELLANEOUS

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

[[Page 112 STAT. 646]]

           TITLE I--CHILD SUPPORT DATA PROCESSING REQUIREMENTS

SEC. 101. ALTERNATIVE PENALTY PROCEDURE.

    (a) In General.--Section 455(a) of the Social Security Act (42 
U.S.C. 655(a)) is amended by adding at the end the following:
    ``(4)(A)(i) If--
            ``(I) the Secretary determines that a State plan under 
        section 454 would (in the absence of this paragraph) be 
        disapproved for the failure of the State to comply with a 
        particular subparagraph of section 454(24), and that the State 
        has made and is continuing to make a good faith effort to so 
        comply; and
            ``(II) the State has submitted to the Secretary a corrective 
        compliance plan that describes how, by when, and at what cost 
        the State will achieve such compliance, which has been approved 
        by the Secretary,

then the Secretary shall not disapprove the State plan under section 
454, and the Secretary shall reduce the amount otherwise payable to the 
State under paragraph (1)(A) of this subsection for the fiscal year by 
the penalty amount.
    ``(ii) All failures of a State during a fiscal year to comply with 
any of the requirements referred to in the same subparagraph of section 
454(24) shall be considered a single failure of the State to comply with 
that subparagraph during the fiscal year for purposes of this paragraph.
    ``(B) In this paragraph:
            ``(i) The term `penalty amount' means, with respect to a 
        failure of a State to comply with a subparagraph of section 
        454(24)--
                    ``(I) 4 percent of the penalty base, in the case of 
                the first fiscal year in which such a failure by the 
                State occurs (regardless of whether a penalty is imposed 
                under this paragraph with respect to the failure);
                    ``(II) 8 percent of the penalty base, in the case of 
                the second such fiscal year;
                    ``(III) 16 percent of the penalty base, in the case 
                of the third such fiscal year;
                    ``(IV) 25 percent of the penalty base, in the case 
                of the fourth such fiscal year; or
                    ``(V) 30 percent of the penalty base, in the case of 
                the fifth or any subsequent such fiscal year.
            ``(ii) The term `penalty base' means, with respect to a 
        failure of a State to comply with a subparagraph of section 
        454(24) during a fiscal year, the amount otherwise payable to 
        the State under paragraph (1)(A) of this subsection for the 
        preceding fiscal year.

    ``(C)(i) The Secretary shall waive a penalty under this paragraph 
for any failure of a State to comply with section 454(24)(A) during 
fiscal year 1998 if--
            ``(I) on or before August 1, 1998, the State has submitted 
        to the Secretary a request that the Secretary certify the State 
        as having met the requirements of such section;
            ``(II) the Secretary subsequently provides the certification 
        as a result of a timely review conducted pursuant to the 
        request; and

[[Page 112 STAT. 647]]

            ``(III) the State has not failed such a review.

    ``(ii) If a State with respect to which a reduction is made under 
this paragraph for a fiscal year with respect to a failure to comply 
with a subparagraph of section 454(24) achieves compliance with such 
subparagraph by the beginning of the succeeding fiscal year, the 
Secretary shall increase the amount otherwise payable to the State under 
paragraph (1)(A) of this subsection for the succeeding fiscal year by an 
amount equal to 90 percent of the reduction for the fiscal year.
    ``(D) The Secretary may not impose a penalty under this paragraph 
against a State with respect to a failure to comply with section 
454(24)(B) for a fiscal year if the Secretary is required to impose a 
penalty under this paragraph against the State with respect to a failure 
to comply with section 454(24)(A) for the fiscal year.''.
    (b) Inapplicability of Penalty Under TANF Program.--Section 
409(a)(8)(A)(i)(III) of such Act (42 U.S.C. 609(a)(8)(A)(i)(III)) is 
amended by inserting ``(other than section 454(24))'' before the 
semicolon.

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

    (a) In General.--Section 452(d)(3) of the Social Security Act (42 
U.S.C. 652(d)(3)) is amended to read as follows:
    ``(3) The Secretary may waive any requirement of paragraph (1) or 
any condition specified under section 454(16), and shall waive the 
single statewide system requirement under sections 454(16) and 454A, 
with respect to a State if--
            ``(A) the State demonstrates to the satisfaction of the 
        Secretary that the State has or can develop an alternative 
        system or systems that enable the State--
                    ``(i) for purposes of section 409(a)(8), to achieve 
                the paternity establishment percentages (as defined in 
                section 452(g)(2)) and other performance measures that 
                may be established by the Secretary;
                    ``(ii) to submit data under section 454(15)(B) that 
                is complete and reliable;
                    ``(iii) to substantially comply with the 
                requirements of this part; and
                    ``(iv) in the case of a request to waive the single 
                statewide system requirement, to--
                          ``(I) meet all functional requirements of 
                      sections 454(16) and 454A;
                          ``(II) ensure that calculation of 
                      distributions meets the requirements of section 
                      457 and accounts for 
                      distributions to children in different families or 
                      in 
                      different States or sub-State jurisdictions, and 
                      for distributions to other States;
                          ``(III) ensure that there is only one point of 
                      contact in the State which provides seamless case 
                      processing for all interstate case processing and 
                      coordinated, automated intrastate case management;
                          ``(IV) ensure that standardized data elements, 
                      forms, and definitions are used throughout the 
                      State;

[[Page 112 STAT. 648]]

                          ``(V) complete the alternative system in no 
                      more time than it would take to complete a single 
                      statewide system that meets such requirement; and
                          ``(VI) process child support cases as quickly, 

                      efficiently, and effectively as such cases would 
                      be processed through a single statewide system 
                      that meets such requirement;
            ``(B)(i) the waiver meets the criteria of paragraphs (1), 
        (2), and (3) of section 1115(c); or
            ``(ii) the State provides assurances to the Secretary that 
        steps will be taken to otherwise improve the State's child 
        support enforcement program; and
            ``(C) in the case of a request to waive the single statewide 
        system requirement, the State has submitted to the Secretary 
        separate estimates of the total cost of a single statewide 
        system that meets such requirement, and of any such alternative 
        system or systems, which shall include estimates of the cost of 
        developing and completing the system and of operating and 
        maintaining the system for 5 years, and the Secretary has agreed 
        with the estimates.''.

    (b) Payments to States.--Section 455(a)(1) of such Act (42 U.S.C. 
655(a)(1)) is amended--
            (1) by striking ``and'' at the end of subparagraph (B);
            (2) by striking the semicolon at the end of subparagraph (C) 
        and inserting ``, and''; and
            (3) by inserting after subparagraph (C) the following:
            ``(D) equal to 66 percent of the sums expended by the State 
        during the quarter for an alternative statewide system for which 
        a waiver has been granted under section 452(d)(3), but only to 
        the extent that the total of the sums so expended by the State 
        on or after the date of the enactment of this subparagraph does 
        not exceed the least total cost estimate submitted by the State 
        pursuant to section 452(d)(3)(C) in the request for the 
        waiver;''.

                TITLE II--CHILD SUPPORT INCENTIVE SYSTEM

SEC. 201. INCENTIVE PAYMENTS TO STATES.

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

``SEC. 458A . <<NOTE: 42 USC 658a.>> INCENTIVE PAYMENTS TO STATES.

    ``(a) In General.--In addition to any other payment under this part, 
the Secretary shall, subject to subsection (f ), make an incentive 
payment to each State for each fiscal year in an amount determined under 
subsection (b).
    ``(b) Amount of Incentive Payment.--
            ``(1) In general.--The incentive payment for a State for a 
        fiscal year is equal to the incentive payment pool for the 
        fiscal year, multiplied by the State incentive payment share for 
        the fiscal year.
            ``(2) Incentive payment pool.--
                    ``(A) In general.--In paragraph (1), the term 
                `incentive payment pool' means--

[[Page 112 STAT. 649]]

                          ``(i) $422,000,000 for fiscal year 2000;
                          ``(ii) $429,000,000 for fiscal year 2001;
                          ``(iii) $450,000,000 for fiscal year 2002;
                          ``(iv) $461,000,000 for fiscal year 2003;
                          ``(v) $454,000,000 for fiscal year 2004;
                          ``(vi) $446,000,000 for fiscal year 2005;
                          ``(vii) $458,000,000 for fiscal year 2006;
                          ``(viii) $471,000,000 for fiscal year 2007;
                          ``(ix) $483,000,000 for fiscal year 2008; and
                          ``(x) for any succeeding fiscal year, the 
                      amount of the incentive payment pool for the 
                      fiscal year that precedes such succeeding fiscal 
                      year, multiplied by the percentage (if any) by 
                      which the CPI for such preceding fiscal year 
                      exceeds the CPI for the second preceding fiscal 
                      year.
                    ``(B) CPI.--For purposes of subparagraph (A), the 
                CPI for a fiscal year is the average of the Consumer 
                Price Index for the 12-month period ending on September 
                30 of the fiscal year. As used in the preceding 
                sentence, the term `Consumer Price Index' means the last 
                Consumer Price Index for all-urban consumers published 
                by the Department of Labor.
            ``(3) State incentive payment share.--In paragraph (1), the 
        term `State incentive payment share' means, with respect to a 
        fiscal year--
                    ``(A) the incentive base amount for the State for 
                the fiscal year; divided by
                    ``(B) the sum of the incentive base amounts for all 
                of the States for the fiscal year.
            ``(4) Incentive base amount.--In paragraph (3), the term 
        `incentive base amount' means, with respect to a State and a 
        fiscal year, the sum of the applicable percentages (determined 
        in accordance with paragraph (6)) multiplied by the 
        corresponding maximum incentive base amounts for the State for 
        the fiscal year, with respect to each of the following measures 
        of State performance for the fiscal year:
                    ``(A) The paternity establishment performance level.
                    ``(B) The support order performance level.
                    ``(C) The current payment performance level.
                    ``(D) The arrearage payment performance level.
                    ``(E) The cost-effectiveness performance level.
            ``(5) Maximum incentive base amount.--
                    ``(A) In general.--For purposes of paragraph (4), 
                the maximum incentive base amount for a State for a 
                fiscal year is--
                          ``(i) with respect to the performance measures 
                      described in subparagraphs (A), (B), and (C) of 
                      paragraph (4), the State collections base for the 
                      fiscal year; and
                          ``(ii) with respect to the performance 
                      measures described in subparagraphs (D) and (E) of 
                      paragraph (4), 75 percent of the State collections 
                      base for the fiscal year.
                    ``(B) Data required to be complete and reliable.--
                Notwithstanding subparagraph (A), the maximum incentive 
                base amount for a State for a fiscal year with respect 
                to a performance measure described in paragraph (4) is

[[Page 112 STAT. 650]]

                zero, unless the Secretary determines, on the basis of 
                an audit performed under section 452(a)(4)(C)(i), that 
                the data which the State submitted pursuant to section 
                454(15)(B) for the fiscal year and which is used to 
                determine the performance level involved is complete and 
                reliable.
                    ``(C) State collections base.--For purposes of 
                subparagraph (A), the State collections base for a 
                fiscal year is equal to the sum of--
                          ``(i) 2 times the sum of--
                                    ``(I) the total amount of support 
                                collected during the fiscal year under 
                                the State plan approved under this part 
                                in cases in which the support obligation 
                                involved is required to be assigned to 
                                the State pursuant to part A or E of 
                                this title or title XIX; and
                                    ``(II) the total amount of support 
                                collected during the fiscal year under 
                                the State plan approved under this part 
                                in cases in which the support obligation 
                                involved was so assigned but, at the 
                                time of collection, is not required to 
                                be so assigned; and
                          ``(ii) the total amount of support collected 
                      during the fiscal year under the State plan 
                      approved under this part in all other cases.
            ``(6) Determination of applicable percentages based on 
        performance levels.--
                    ``(A) Paternity establishment.--
                          ``(i) Determination of paternity establishment 
                      performance level.--The paternity establishment 
                      performance level for a State for a fiscal year 
                      is, at the option of the State, the IV-D paternity 
                      establishment percentage determined under section 
                      452(g)(2)(A) or the statewide paternity 
                      establishment percentage determined under section 
                      452(g)(2)(B).
                          ``(ii) Determination of applicable 
                      percentage.--The applicable percentage with 
                      respect to a State's paternity establishment 
                      performance level is as follows:
      

------------------------------------------------------------------------
``If the paternity establishment performance level is:
-------------------------------------------------------  The applicable
            At least:                 But less than:     percentage is:
------------------------------------------------------------------------
80%..............................  ...................         100
79%..............................  80%................         98
78%..............................  79%................         96
77%..............................  78%................         94
76%..............................  77%................         92
75%..............................  76%................         90
74%..............................  75%................         88
73%..............................  74%................         86
72%..............................  73%................         84
71%..............................  72%................         82
70%..............................  71%................         80
69%..............................  70%................         79
68%..............................  69%................         78

[[Page 112 STAT. 651]]

 
67%..............................  68%................         77
66%..............................  67%................         76
65%..............................  66%................         75
64%..............................  65%................         74
63%..............................  64%................         73
62%..............................  63%................         72
61%..............................  62%................         71
60%..............................  61%................         70
59%..............................  60%................         69
58%..............................  59%................         68
57%..............................  58%................         67
56%..............................  57%................         66
55%..............................  56%................         65
54%..............................  55%................         64
53%..............................  54%................         63
52%..............................  53%................         62
51%..............................  52%................         61
50%..............................  51%................         60
0%...............................  50%................         0.
------------------------------------------------------------------------

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

------------------------------------------------------------------------
     ``If the support order performance level is:
-------------------------------------------------------  The applicable
            At least:                 But less than:     percentage is:
------------------------------------------------------------------------
80%..............................  ...................         100
79%..............................  80%................         98
78%..............................  79%................         96
77%..............................  78%................         94
76%..............................  77%................         92
75%..............................  76%................         90
74%..............................  75%................         88
73%..............................  74%................         86
72%..............................  73%................         84

[[Page 112 STAT. 652]]

 
71%..............................  72%................         82
70%..............................  71%................         80
69%..............................  70%................         79
68%..............................  69%................         78
67%..............................  68%................         77
66%..............................  67%................         76
65%..............................  66%................         75
64%..............................  65%................         74
63%..............................  64%................         73
62%..............................  63%................         72
61%..............................  62%................         71
60%..............................  61%................         70
59%..............................  60%................         69
58%..............................  59%................         68
57%..............................  58%................         67
56%..............................  57%................         66
55%..............................  56%................         65
54%..............................  55%................         64
53%..............................  54%................         63
52%..............................  53%................         62
51%..............................  52%................         61
50%..............................  51%................         60
0%...............................  50%................         0.
------------------------------------------------------------------------

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

------------------------------------------------------------------------
    ``If the current payment performance level is:
-------------------------------------------------------  The applicable
            At least:                 But less than:     percentage is:
------------------------------------------------------------------------
80%..............................  ...................         100
79%..............................  80%................         98
78%..............................  79%................         96
77%..............................  78%................         94

[[Page 112 STAT. 653]]

 
76%..............................  77%................         92
75%..............................  76%................         90
74%..............................  75%................         88
73%..............................  74%................         86
72%..............................  73%................         84
71%..............................  72%................         82
70%..............................  71%................         80
69%..............................  70%................         79
68%..............................  69%................         78
67%..............................  68%................         77
66%..............................  67%................         76
65%..............................  66%................         75
64%..............................  65%................         74
63%..............................  64%................         73
62%..............................  63%................         72
61%..............................  62%................         71
60%..............................  61%................         70
59%..............................  60%................         69
58%..............................  59%................         68
57%..............................  58%................         67
56%..............................  57%................         66
55%..............................  56%................         65
54%..............................  55%................         64
53%..............................  54%................         63
52%..............................  53%................         62
51%..............................  52%................         61
50%..............................  51%................         60
49%..............................  50%................         59
48%..............................  49%................         58
47%..............................  48%................         57
46%..............................  47%................         56
45%..............................  46%................         55
44%..............................  45%................         54
43%..............................  44%................         53
42%..............................  43%................         52
41%..............................  42%................         51
40%..............................  41%................         50
0%...............................  40%................         0.
------------------------------------------------------------------------

                      Notwithstanding the preceding sentence, if the 
                      current payment performance level of a State for a 
                      fiscal year is less than 40 percent but exceeds by 
                      at least 5 percentage points the current payment 
                      performance level of the State for the immediately 
                      preceding fiscal year, then the applicable 
                      percentage with respect to the State's current 
                      payment performance level is 50 percent.
                    ``(D) Collections on child support arrearages.--
                          ``(i) Determination of arrearage payment 
                      performance level.--The arrearage payment 
                      performance level for a State for a fiscal year is 
                      equal to the total number of cases under the State 
                      plan approved under this part in which payments of 
                      past-

[[Page 112 STAT. 654]]

                      due child support were received during the fiscal 
                      year and part or all of the payments were 
                      distributed to the family to whom the past-due 
                      child support was owed (or, if all past-due child 
                      support owed to the family was, at the time of 
                      receipt, subject to an assignment to the State, 
                      part or all of the payments were retained by the 
                      State) divided by the total number of cases under 
                      the State plan in which there is past-due child 
                      support, expressed as a percentage.
                          ``(ii) Determination of applicable 
                      percentage.--The applicable percentage with 
                      respect to a State's arrearage payment performance 
                      level is as 
                      follows:

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

[[Page 112 STAT. 655]]

 
41%..............................  42%................         51
40%..............................  41%................         50
0%...............................  40%................         0.
------------------------------------------------------------------------

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

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

    ``(c) Treatment of Interstate Collections.--In computing incentive 
payments under this section, support which is collected by a State at 
the request of another State shall be treated as having been collected 
in full by both States, and any amounts expended by a State in carrying 
out a special project assisted under section 455(e) shall be excluded.
    ``(d) Administrative Provisions.--The amounts of the incentive 
payments to be made to the States under this section for a fiscal year 
shall be estimated by the Secretary at/or before the beginning of the 
fiscal year on the basis of the best information available. The 
Secretary shall make the payments for the fiscal year, on a quarterly 
basis (with each quarterly payment being made no later than the 
beginning of the quarter involved), in the amounts so estimated, reduced 
or increased to the extent of

[[Page 112 STAT. 656]]

any overpayments or underpayments which the Secretary determines were 
made under this section to the States involved for prior periods and 
with respect to which adjustment has not already been made under this 
subsection. Upon the making of any estimate by the Secretary under the 
preceding sentence, any appropriations available for payments under this 
section are deemed obligated.
    ``(e) Regulations.--The Secretary shall prescribe such regulations 
as may be necessary governing the calculation of incentive payments 
under this section, including directions for excluding from the 
calculations certain closed cases and cases over which the States do not 
have jurisdiction.
    ``(f ) Reinvestment.--A State to which a payment is made under this 
section shall expend the full amount of the payment to supplement, and 
not supplant, other funds used by the State--
            ``(1) to carry out the State plan approved under this 
        part; or
            ``(2) for any activity (including cost-effective contracts 
        with local agencies) approved by the Secretary, whether or not 
        the expenditures for the activity are eligible for reimbursement 
        under this part, which may contribute to improving the 
        effectiveness or efficiency of the State program operated under 
        this part.''.

    (b) <<NOTE: 42 USC 658a note.>> Transition Rule.--Notwithstanding 
any other provision of law--
            (1) for fiscal year 2000, the Secretary shall reduce by one-
        third the amount otherwise payable to a State under section 458 
        of the Social Security Act, and shall reduce by two-thirds the 
        amount otherwise payable to a State under section 458A of such 
        Act; and
            (2) for fiscal year 2001, the Secretary shall reduce by two-
        thirds the amount otherwise payable to a State under section 458 
        of the Social Security Act, and shall reduce by one-third the 
        amount otherwise payable to a State under section 458A of such 
        Act.

    (c) <<NOTE: 42 USC 658a note.>> Regulations.--Within 9 months after 
the date of the enactment of this section, the Secretary of Health and 
Human Services shall prescribe regulations governing the implementation 
of section 458A of the Social Security Act when such section takes 
effect and the implementation of subsection (b) of this section.

    (d) <<NOTE: 42 USC 658a note.>> Studies.--
            (1) General review of new incentive payment system.--
                    (A) In general.--The Secretary of Health and Human 
                Services shall conduct a study of the implementation of 
                the incentive payment system established by section 458A 
                of the Social Security Act, in order to identify the 
                problems and successes of the system.
                    (B) <<NOTE: Deadlines.>> Reports to the congress.--
                          (i) Report on variations in state performance 
                      attributable to demographic variables.--Not later 
                      than October 1, 2000, the Secretary shall submit 
                      to the Congress a report that identifies any 
                      demographic or economic variables that account for 
                      differences in the performance levels achieved by 
                      the States with respect to the performance 
                      measures used in the system, and contains the 
                      recommendations of the Secretary for such 
                      adjustments to the system as may be necessary to 
                      ensure that the relative performance

[[Page 112 STAT. 657]]

                      of States is measured from a baseline that takes 
                      account of any such variables.
                          (ii) Interim report.--Not later than March 1, 
                      2001, the Secretary shall submit to the Congress 
                      an interim report that contains the findings of 
                      the study required by subparagraph (A).
                          (iii) Final report.--Not later than October 1, 
                      2003, the Secretary shall submit to the Congress a 
                      final report that contains the final findings of 
                      the study required by subparagraph (A). The report 
                      shall include any recommendations for changes in 
                      the system that the Secretary determines would 
                      improve the operation of the child support 
                      enforcement program.
            (2) Development of medical support incentive.--
                    (A) In general.--The Secretary of Health and Human 
                Services, in consultation with State directors of 
                programs operated under part D of title IV of the Social 
                Security Act and representatives of children potentially 
                eligible for medical support, shall develop a 
                performance measure based on the effectiveness of States 
                in establishing and enforcing medical support 
                obligations, and shall make recommendations for the 
                incorporation of the measure, in a revenue neutral 
                manner, into the incentive payment system established by 
                section 458A of the Social Security Act.
                    (B) <<NOTE: Deadline.>> Report.--Not later than 
                October 1, 1999, the Secretary shall submit to the 
                Congress a report that describes the performance measure 
                and contains the recommendations required by 
                subparagraph (A).

    (e) Technical Amendments.--
            (1) In general.--Section 341 of the Personal Responsibility 
        and Work Opportunity Reconciliation Act of 1996 (42 U.S.C. 658 
        note) is amended--
                    (A) <<NOTE: 42 USC 652 and note, 658 and notes.>> by 
                striking subsection (a) and redesignating subsections 
                (b), (c), and (d) as subsections (a), (b), and (c), 
                respectively; and
                    (B) in subsection (c) (as so redesignated)--
                          (i) <<NOTE: 42 USC 658 note.>> by striking 
                      paragraph (1) and inserting the following:
            ``(1) <<NOTE: Effective date.>> Conforming amendments to 
        present system.--The amendments made by subsection (a) of this 
        section shall become effective with respect to a State as of the 
        date the amendments made by section 103(a) (without regard to 
        section 116(a)(2)) first apply to the State.''; and
                          (ii) <<NOTE: 42 USC 652 note.>> in paragraph 
                      (2), by striking ``(c)'' and inserting ``(b)''.
            (2) <<NOTE: 42 USC 652 note.>> Effective date.--The 
        amendments made by this 
        subsection shall take effect as if included in the enactment of 
        section 341 of the Personal Responsibility and Work Opportunity 
        Reconciliation Act of 1996.

    (f ) Elimination of Predecessor Incentive Payment 
System.--
            (1) Repeal.--Section 458 of the Social Security Act (42 
        U.S.C. 658) is repealed.
            (2) Conforming amendments.--

[[Page 112 STAT. 658]]

                    (A) Section 458A of the Social Security Act, as 
                added by section 201(a) of this Act, is redesignated as 
                section 458.
                    (B) Section 455(a)(4)(C)(iii) of such Act (42 U.S.C. 
                655(a)(4)(C)(iii)), as added by section 101(a) of this 
                Act, is amended--
                          (i) by striking ``458A(b)(4)'' and inserting 
                      ``458(b)(4)'';
                          (ii) by striking ``458A(b)(6)'' and inserting 
                      ``458(b)(6)''; and
                          (iii) by striking ``458A(b)(5)(B)'' and 
                      inserting ``458(b)(5)(B)''.
                    (C) Subsection (d)(1) of this section is amended by 
                striking ``458A'' and inserting ``458''.
            (3) <<NOTE: 42 USC 655 note.>> Effective date.--The 
        amendments made by this 
        subsection shall take effect on October 1, 2001.

    (g) <<NOTE: 42 USC 658a note.>> General Effective Date.--Except as 
otherwise provided in this section, the amendments made by this section 
shall take effect on October 1, 1999.

                     TITLE III--ADOPTION PROVISIONS

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

    (a) Conversion of Funding Ban Into State Plan Requirement.--Section 
471(a) of the Social Security Act (42 U.S.C. 671(a)) is amended--
            (1) by striking ``and'' at the end of paragraph (21);
            (2) by striking the period at the end of paragraph (22) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(23) provides that the State shall not--
                    ``(A) deny or delay the placement of a child for 
                adoption when an approved family is available outside of 
                the 
                jurisdiction with responsibility for handling the case 
                of the child; or
                    ``(B) fail to grant an opportunity for a fair 
                hearing, as described in paragraph (12), to an 
                individual whose allegation of a violation of 
                subparagraph (A) of this paragraph is denied by the 
                State or not acted upon by the State with reasonable 
                promptness.''.

    (b) Penalty for Noncompliance.--Section 474(d) of such Act (42 
U.S.C. 674(d)) is amended in each of paragraphs (1) and (2) by striking 
``section 471(a)(18)'' and inserting ``paragraph (18) or (23) of section 
471(a)''.
    (c) Conforming Amendment.--Section 474 of such Act (42 U.S.C. 674) 
is amended by striking subsection (e).
    (d) <<NOTE: 42 USC 671 note.>> Retroactivity.--The amendments made 
by this section shall take effect as if included in the enactment of 
section 202 of the Adoption and Safe Families Act of 1997 (Public Law 
105-89; 111 Stat. 2125).

[[Page 112 STAT. 659]]

                         TITLE IV--MISCELLANEOUS

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

    (a) <<NOTE: 42 USC 651 note.>> Study on Effectiveness of Enforcement 
of Medical Support by State Agencies.--
            (1) <<NOTE: Deadline. Establishment.>> Medical child support 
        working group.--Within 60 days after the date of the enactment 
        of this Act, the Secretary of Health and Human Services and the 
        Secretary of Labor shall jointly establish a Medical Child 
        Support Working Group. The purpose of the Working Group shall be 
        to identify the impediments to the effective enforcement of 
        medical support by State agencies administering the programs 
        operated pursuant to part D of title IV of the Social Security 
        Act.
            (2) Membership.--The Working Group shall consist of not more 
        than 30 members and shall be composed of representatives of--
                    (A) the Department of Labor;
                    (B) the Department of Health and Human Services;
                    (C) State directors of programs under part D of 
                title IV of the Social Security Act;
                    (D) State directors of the Medicaid program under 
                title XIX of the Social Security Act;
                    (E) employers, including owners of small businesses 
                and their trade or industry representatives and 
                certified human resource and payroll professionals;
                    (F) plan administrators and plan sponsors of group 
                health plans (as defined in section 607(1) of the 
                Employee Retirement Income Security Act of 1974 (29 
                U.S.C. 1167(1));
                    (G) children potentially eligible for medical 
                support, such as child advocacy organizations;
                    (H) State medical child support programs; and
                    (I) organizations representing State child support 
                programs.
            (3) Compensation.--The members shall serve without 
        compensation.
            (4) Administrative support.--The Department of Health and 
        Human Services and the Department of Labor shall jointly provide 
        appropriate administrative support to the Working Group, 
        including technical assistance. The Working Group may use the 
        services and facilities of either such Department, with or 
        without reimbursement, as jointly determined by such 
        Departments.
            (5) Report.--
                    (A) <<NOTE: Deadline.>> Report by working group to 
                the secretaries.--Not later than 18 months after the 
                date of the enactment of this Act, the Working Group 
                shall submit to the Secretary of Labor and the Secretary 
                of Health and Human Services a report containing 
                recommendations for appropriate measures to address the 
                impediments to the effective enforcement of medical 
                support by State agencies administering the programs 
                operated pursuant to part D of title IV of the Social 
                Security Act identified by the Working Group, 
                including--

[[Page 112 STAT. 660]]

                          (i) recommendations based on assessments of 
                      the form and content of the National Medical 
                      Support Notice, as issued under interim 
                      regulations;
                          (ii) appropriate measures that establish the 
                      priority of withholding of child support 
                      obligations, medical support obligations, 
                      arrearages in such obligations, and in the case of 
                      a medical support obligation, the employee's 
                      portion of any health care coverage premium, by 
                      such State agencies in light of the restrictions 
                      on garnishment provided under title III of the 
                      Consumer Credit Protection Act (15 U.S.C. 1671-
                      1677);
                          (iii) appropriate procedures for coordinating 
                      the provision, enforcement, and transition of 
                      health care coverage under the State programs 
                      operated pursuant to part D of title IV of the 
                      Social Security Act and titles XIX and XXI of such 
                      Act;
                          (iv) appropriate measures to improve the 
                      availability of alternate types of medical support 
                      that are aside from health coverage offered 
                      through the noncustodial parent's health plan and 
                      unrelated to the noncustodial parent's employer, 
                      including measures that establish a noncustodial 
                      parent's responsibility to share the cost of 
                      premiums, co-payments, deductibles, or payments 
                      for services not covered under a child's existing 
                      health coverage;
                          (v) recommendations on whether reasonable cost 
                      should remain a consideration under section 452(f 
                      ) of the Social Security Act; and
                          (vi) appropriate measures for eliminating any 
                      other impediments to the effective enforcement of 
                      medical support orders that the Working Group 
                      deems necessary.
                    (B) <<NOTE: Deadline.>> Report by secretaries to the 
                congress.--Not later than 2 months after receipt of the 
                report pursuant to subparagraph (A), the Secretaries 
                shall jointly submit a report to each House of the 
                Congress regarding the recommendations contained in the 
                report under subparagraph (A).
            (6) Termination.--The Working Group shall terminate 30 days 
        after the date of the issuance of its report under paragraph 
        (5).

    (b) <<NOTE: Regulations. 42 USC 651 note.>> Promulgation of National 
Medical Support Notice.--
            (1) In general.--The Secretary of Health and Human Services 
        and the Secretary of Labor shall jointly develop and promulgate 
        by regulation a National Medical Support Notice, to be issued by 
        States as a means of enforcing the health care coverage 
        provisions in a child support order.
            (2) Requirements.--The National Medical Support Notice 
        shall--
                    (A) conform with the requirements which apply to 
                medical child support orders under section 609(a)(3) of 
                the Employee Retirement Income Security Act of 1974 (29 
                U.S.C. 1169(a)(3)) in connection with group health plans 
                (subject to section 609(a)(4) of such Act), irrespective 
                of whether the group health plan is covered under 
                section 4 of such Act;

[[Page 112 STAT. 661]]

                    (B) conform with the requirements of part D of title 
                IV of the Social Security Act; and
                    (C) include a separate and easily severable employer 
                withholding notice, informing the employer of--
                          (i) applicable provisions of State law 
                      requiring the employer to withhold any employee 
                      contributions due under any group health plan in 
                      connection with 
                      coverage required to be provided under such order;
                          (ii) the duration of the withholding 
                      requirement;
                          (iii) the applicability of limitations on any 
                      such withholding under title III of the Consumer 
                      Credit Protection Act;
                          (iv) the applicability of any prioritization 
                      required under State law between amounts to be 
                      withheld for purposes of cash support and amounts 
                      to be withheld for purposes of medical support, in 
                      cases where available funds are insufficient for 
                      full withholding for both purposes; and
                          (v) the name and telephone number of the 
                      appropriate unit or division to contact at the 
                      State agency regarding the National Medical 
                      Support Notice.
            (3) Procedures.--The regulations promulgated pursuant to 
        paragraph (1) shall include appropriate procedures for the 
        transmission of the National Medical Support Notice to employers 
        by State agencies administering the programs operated pursuant 
        to part D of title IV of the Social Security Act.
            (4) <<NOTE: Deadline.>> Interim regulations.--Not later than 
        10 months after the date of the enactment of this Act, the 
        Secretaries shall issue interim regulations providing for the 
        National Medical Support Notice.
            (5) <<NOTE: Deadline.>> Final regulations.--Not later than 1 
        year after the issuance of the interim regulations under 
        paragraph (4), the Secretary of Health and Human Services and 
        the Secretary of Labor shall jointly issue final regulations 
        providing for the National Medical Support Notice.

    (c) Required Use by States of National Medical Support Notices.--
            (1) State procedures.--Section 466(a)(19) of the Social 
        Security Act (42 U.S.C. 666(a)(19)) is amended to read as 
        follows:
            ``(19) Health care coverage.--Procedures under which--
                    ``(A) effective as provided in section 401(c)(3) of 
                the Child Support Performance and Incentive Act of 1998, 
                all child support orders enforced pursuant to this part 
                which include a provision for the health care coverage 
                of the child are enforced, where appropriate, through 
                the use of the National Medical Support Notice 
                promulgated pursuant to section 401(b) of the Child 
                Support Performance and Incentive Act of 1998 (and 
                referred to in section 609(a)(5)(C) of the Employee 
                Retirement Income Security Act of 1974 in connection 
                with group health plans covered under title I of such 
                Act, in section 401(e)(3)(C) of the Child Support 
                Performance and Incentive Act of 1998 in connection with 
                State or local group health plans, and in section 401(f 
                )(5)(C) of such Act in connection with church group 
                health plans);

[[Page 112 STAT. 662]]

                    ``(B) unless alternative coverage is allowed for in 
                any order of the court (or other entity issuing the 
                child support order), in any case in which a 
                noncustodial parent is required under the child support 
                order to provide such health care coverage and the 
                employer of such noncustodial parent is known to the 
                State agency--
                          ``(i) the State agency uses the National 
                      Medical Support Notice to transfer notice of the 
                      provision for the health care coverage of the 
                      child to the employer;
                          ``(ii) within 20 business days after the date 
                      of the National Medical Support Notice, the 
                      employer is required to transfer the Notice, 
                      excluding the severable employer withholding 
                      notice described in section 401(b)(2)(C) of the 
                      Child Support Performance and Incentive Act of 
                      1998, to the appropriate plan providing any such 
                      health care coverage for which the child is 
                      eligible;
                          ``(iii) in any case in which the noncustodial 
                      parent is a newly hired employee entered in the 
                      State Directory of New Hires pursuant to section 
                      453A(e), the State agency provides, where 
                      appropriate, the National Medical Support Notice, 
                      together with an income withholding notice issued 
                      pursuant to section 466(b), within two days after 
                      the date of the entry of such employee in such 
                      Directory; and
                          ``(iv) in any case in which the employment of 
                      the noncustodial parent with any employer who has 
                      received a National Medical Support Notice is 
                      terminated, such employer is required to notify 
                      the State agency of such termination; and
                    ``(C) any liability of the noncustodial parent to 
                such plan for employee contributions which are required 
                under such plan for enrollment of the child is 
                effectively subject to appropriate enforcement, unless 
                the noncustodial parent contests such enforcement based 
                on a mistake of fact.''.
            (2) Conforming amendments.--Section 452(f ) of such Act (42 
        U.S.C. 652(f )) is amended in the first sentence--
                    (A) by striking ``petition for the inclusion of '' 
                and 
                inserting ``include''; and
                    (B) by inserting ``and enforce medical support'' 
                before ``whenever''.
            (3) <<NOTE: 42 USC 652 note.>> Effective date.--The 
        amendments made by this subsection shall be effective with 
        respect to periods beginning on or after the later of--
                    (A) October 1, 2001; or
                    (B) the effective date of laws enacted by the 
                legislature of such State implementing such amendments,
        but in no event later than the first day of the first calendar 
        quarter beginning after the close of the first regular session 
        of the State legislature that begins after the date of the 
        enactment of this Act. For purposes of the preceding sentence, 
        in the case of a State that has a 2-year legislative session, 
        each year of such session shall be deemed to be a separate 
        regular session of the State legislature.

    (d) National Medical Support Notice Deemed under 
ERISA a Qualified Medical Child Support Order.--Section 609(a)(5) of the 
Employee Retirement Income Security Act of 1974

[[Page 112 STAT. 663]]

(29 U.S.C. 1169(a)(5)) is amended by adding at the end the following:
                    ``(C) National medical support notice deemed to be a 
                qualified medical child support order.--
                          ``(i) In general.--If the plan administrator 
                      of a group health plan which is maintained by the 
                      employer of a noncustodial parent of a child or to 
                      which such an employer contributes receives an 
                      appropriately completed National Medical Support 
                      Notice promulgated pursuant to section 401(b) of 
                      the Child Support Performance and Incentive Act of 
                      1998 in the case of such child, and the Notice 
                      meets the requirements of paragraphs (3) and (4), 
                      the Notice shall be deemed to be a qualified 
                      medical child support order in the case of such 
                      child.
                          ``(ii) Enrollment of child in plan.--In any 
                      case in which an appropriately completed National 
                      Medical Support Notice is issued in the case of a 
                      child of a participant under a group health plan 
                      who is a noncustodial parent of the child, and the 
                      Notice is deemed under clause (i) to be a 
                      qualified medical child support order, the plan 
                      administrator, within 40 business days after the 
                      date of the Notice, shall--
                                    ``(I) <<NOTE: Notification.>> notify 
                                the State agency issuing the Notice with 
                                respect to such child whether coverage 
                                of the child is available under the 
                                terms of the plan and, if so, whether 
                                such child is covered under the plan and 
                                either the effective date of the 
                                coverage or, if necessary, any steps to 
                                be taken by the custodial parent (or by 
                                the official of a State or political 
                                subdivision thereof substituted for the 
                                name of such child pursuant to paragraph 
                                (3)(A)) to effectuate the coverage; and
                                    ``(II) provide to the custodial 
                                parent (or such substituted official) a 
                                description of the coverage available 
                                and any forms or documents necessary to 
                                effectuate such coverage.
                          ``(iii) Rule of construction.--Nothing in this 
                      subparagraph shall be construed as requiring a 
                      group health plan, upon receipt of a National 
                      Medical Support Notice, to provide benefits under 
                      the plan (or eligibility for such benefits) in 
                      addition to benefits (or eligibility for benefits) 
                      provided under the terms of the plan as of 
                      immediately before receipt of such Notice.''.

    (e) <<NOTE: 29 USC 1169 note.>> National Medical Support Notices for 
State or Local Governmental Group Health Plans.--
            (1) In general.--Each State or local governmental group 
        health plan shall provide benefits in accordance with the 
        applicable requirements of any National Medical Support Notice.
            (2) Enrollment of child in plan.--In any case in which an 
        appropriately completed National Medical Support Notice is 
        issued in the case of a child of a participant under a State or 
        local governmental group health plan who is a noncustodial 
        parent of the child, the plan administrator, within 40 business 
        days after the date of the Notice, shall--

[[Page 112 STAT. 664]]

                    (A) <<NOTE: Notification.>> notify the State agency 
                issuing the Notice with respect to such child whether 
                coverage of the child is available under the terms of 
                the plan and, if so, whether such child is covered under 
                the plan and either the effective date of the coverage 
                or any steps necessary to be taken by the custodial 
                parent (or by any official of a State or political 
                subdivision thereof substituted in the Notice for the 
                name of such child in accordance with procedures 
                appliable under subsection (b)(2) of this section) to 
                effectuate the coverage; and
                    (B) provide to the custodial parent (or such 
                substituted official) a description of the coverage 
                available and any forms or documents necessary to 
                effectuate such coverage.
            (3) Rule of construction.--Nothing in this subsection shall 
        be construed as requiring a State or local governmental group 
        health plan, upon receipt of a National Medical Support Notice, 
        to provide benefits under the plan (or eligibility for such 
        benefits) in addition to benefits (or eligibility for benefits) 
        provided under the terms of the plan as of immediately before 
        receipt of such Notice.
            (4) Definitions.--For purposes of this subsection--
                    (A) State or local governmental group health plan.--
                The term ``State or local governmental group health 
                plan'' means a group health plan which is established or 
                maintained for its employees by the government of any 
                State, any political subdivision of a State, or any 
                agency or instrumentality of either of the foregoing.
                    (B) Alternate recipient.--The term ``alternate 
                recipient'' means any child of a participant who is 
                recognized under a National Medical Support Notice as 
                having a right to enrollment under a State or local 
                governmental group health plan with respect to such 
                participant.
                    (C) Group health plan.--The term ``group health 
                plan'' has the meaning provided in section 607(1) of the 
                Employee Retirement Income Security Act of 1974.
                    (D) State.--The term ``State'' includes the District 
                of Columbia, the Commonwealth of Puerto Rico, the Virgin 
                Islands, Guam, and American Samoa.
                    (E) Other terms.--The terms ``participant'' and 
                ``administrator'' shall have the meanings provided such 
                terms, respectively, by paragraphs (7) and (16) of 
                section 3 of the Employee Retirement Income Security Act 
                of 1974.
            (5) Effective date.--The provisions of this subsection shall 
        take effect on the date of the issuance of interim regulations 
        pursuant to subsection (b)(4) of this section.

    (f ) <<NOTE: 29 USC 1169 note.>> Qualified Medical Child Support 
Orders and National Medical Support Notices for Church Plans.--
            (1) In general.--Each church group health plan shall provide 
        benefits in accordance with the applicable requirements of any 
        qualified medical child support order. A qualified medical child 
        support order with respect to any participant or beneficiary 
        shall be deemed to apply to each such group health plan which 
        has received such order, from which the participant or 
        beneficiary is eligible to receive benefits, and with respect to 
        which the requirements of paragraph (4) are met.
            (2) Definitions.--For purposes of this subsection--

[[Page 112 STAT. 665]]

                    (A) Church group health plan.--The term ``church 
                group health plan'' means a group health plan which is a 
                church plan.
                    (B) Qualified medical child support order.--The term 
                ``qualified medical child support order'' means a 
                medical child support order--
                          (i) which creates or recognizes the existence 
                      of an alternate recipient's right to, or assigns 
                      to an alternate recipient the right to, receive 
                      benefits for which a participant or beneficiary is 
                      eligible under a church group health plan; and
                          (ii) with respect to which the requirements of 

                      paragraphs (3) and (4) are met.
                    (C) Medical child support order.--The term ``medical 
                child support order'' means any judgment, decree, or 
                order (including approval of a settlement agreement) 
                which--
                          (i) provides for child support with respect to 
                      a child of a participant under a church group 
                      health plan or provides for health benefit 
                      coverage to such a child, is made pursuant to a 
                      State domestic relations law (including a 
                      community property law), and relates to benefits 
                      under such plan; or
                          (ii) is made pursuant to a law relating to 
                      medical child support described in section 1908 of 
                      the Social Security Act (as added by section 13822 
                      of the Omnibus Budget Reconciliation Act of 1993) 
                      with respect to a church group health plan,
                if such judgment, decree, or order: (I) is issued by a 
                court of competent jurisdiction; or (II) is issued 
                through an administrative process established under 
                State law and has the force and effect of law under 
                applicable State law. For purposes of this paragraph, an 
                administrative notice which is issued pursuant to an 
                administrative process referred to in subclause (II) of 
                the preceding sentence and which has the effect of an 
                order described in clause (i) or (ii) of the preceding 
                sentence shall be treated as such an order.
                    (D) Alternate recipient.--The term ``alternate 
                recipient'' means any child of a participant who is 
                recognized under a medical child support order as having 
                a right to enrollment under a church group health plan 
                with respect to such participant.
                    (E) Group health plan.--The term ``group health 
                plan'' has the meaning provided in section 607(1) of the 
                Employee Retirement Income Security Act of 1974.
                    (F) State.--The term ``State'' includes the District 
                of Columbia, the Commonwealth of Puerto Rico, the Virgin 
                Islands, Guam, and American Samoa.
                    (G) Other terms.--The terms ``participant'', 
                ``beneficiary'', ``administrator'', and ``church plan'' 
                shall have the meanings provided such terms, 
                respectively, by paragraphs (7), (8), (16), and (33) of 
                section 3 of the Employee Retirement Income Security Act 
                of 1974.
            (3) Information to be included in qualified order.--A 
        medical child support order meets the requirements of this 
        paragraph only if such order clearly specifies--

[[Page 112 STAT. 666]]

                    (A) the name and the last known mailing address (if 
                any) of the participant and the name and mailing address 
                of each alternate recipient covered by the order, except 
                that, to the extent provided in the order, the name and 
                mailing address of an official of a State or a political 
                subdivision thereof may be substituted for the mailing 
                address of any such alternate recipient;
                    (B) a reasonable description of the type of coverage 
                to be provided to each such alternate recipient, or the 
                manner in which such type of coverage is to be 
                determined; and
                    (C) the period to which such order applies.
            (4) Restriction on new types or forms of benefits.--A 
        medical child support order meets the requirements of this 
        paragraph only if such order does not require a church group 
        health plan to provide any type or form of benefit, or any 
        option, not otherwise provided under the plan, except to the 
        extent necessary to meet the requirements of a law relating to 
        medical child support described in section 1908 of the Social 
        Security Act (as added by section 13822 of the Omnibus Budget 
        Reconciliation Act of 1993).
            (5) Procedural requirements.--
                    (A) Timely notifications and determinations.--In the 
                case of any medical child support order received by a 
                church group health plan--
                          (i) <<NOTE: Notification.>> the plan 
                      administrator shall promptly notify the 
                      participant and each alternate recipient of the 
                      receipt of such order and the plan's procedures 
                      for determining whether medical child support 
                      orders are qualified medical child support orders; 
                      and
                          (ii) within a reasonable period after receipt 
                      of such order, the plan administrator shall 
                      determine whether such order is a qualified 
                      medical child support order and notify the 
                      participant and each alternate recipient of such 
                      determination.
                    (B) Establishment of procedures for determining 
                qualified status of orders.--Each church group health 
                plan shall establish reasonable procedures to determine 
                whether medical child support orders are qualified 
                medical child support orders and to administer the 
                provision of benefits under such qualified orders. Such 
                procedures--
                          (i) shall be in writing;
                          (ii) shall provide for the notification of 
                      each person specified in a medical child support 
                      order as eligible to receive benefits under the 
                      plan (at the address included in the medical child 
                      support order) of such procedures promptly upon 
                      receipt by the plan of the medical child support 
                      order; and
                          (iii) shall permit an alternate recipient to 
                      designate a representative for receipt of copies 
                      of notices that are sent to the alternate 
                      recipient with respect to a medical child support 
                      order.
                    (C) National medical support notice deemed to be a 
                qualified medical child support order.--
                          (i) In general.--If the plan administrator of 
                      any church group health plan which is maintained 
                      by the employer of a noncustodial parent of a 
                      child or to

[[Page 112 STAT. 667]]

                      which such an employer contributes receives an 
                      appropriately completed National Medical Support 
                      Notice promulgated pursuant to subsection (b) of 
                      this section in the case of such child, and the 
                      Notice meets the requirements of paragraphs (3) 
                      and (4) of this subsection, the Notice shall be 
                      deemed to be a qualified medical child support 
                      order in the case of such child.
                          (ii) Enrollment of child in plan.--In any case 
                      in which an appropriately completed National 
                      Medical Support Notice is issued in the case of a 
                      child of a participant under a church group health 
                      plan who is a noncustodial parent of the child, 
                      and the Notice is deemed under clause (i) to be a 
                      qualified medical child support order, the plan 
                      administrator, within 40 business days after the 
                      date of the Notice, shall--
                                    (I) <<NOTE: Notification.>> notify 
                                the State agency issuing the Notice with 
                                respect to such child whether coverage 
                                of the child is available under the 
                                terms of the plan and, if so, whether 
                                such child is covered under the plan and 
                                either the effective date of the 
                                coverage or any steps necessary to be 
                                taken by the custodial parent (or by the 
                                official of a State or political 
                                subdivision thereof substituted for the 
                                name of such child pursuant to paragraph 
                                (3)(A)) to effectuate the coverage; and
                                    (II) provide to the custodial parent 
                                (or such substituted official) a 
                                description of the coverage available 
                                and any forms or documents necessary to 
                                effectuate such coverage.
                          (iii) Rule of construction.--Nothing in this 
                      subparagraph shall be construed as requiring a 
                      church group health plan, upon receipt of a 
                      National Medical Support Notice, to provide 
                      benefits under the plan (or eligibility for such 
                      benefits) in addition to benefits (or eligibility 
                      for benefits) provided under the terms of the plan 
                      as of immediately before receipt of such Notice.
            (6) Direct provision of benefits provided to alternate 
        recipients.--Any payment for benefits made by a church group 
        health plan pursuant to a medical child support order in 
        reimbursement for expenses paid by an alternate recipient or an 
        alternate recipient's custodial parent or legal guardian shall 
        be made to the alternate recipient or the alternate recipient's 
        custodial parent or legal guardian.
            (7) Payment to state official treated as satisfaction of 
        plan's obligation to make payment to alternate recipient.--
        Payment of benefits by a church group health plan to an official 
        of a State or a political subdivision thereof whose name and 
        address have been substituted for the address of an alternate 
        recipient in a medical child support order, pursuant to 
        paragraph (3)(A), shall be treated, for purposes of this 
        subsection and part D of title IV of the Social Security Act, as 
        payment of benefits to the alternate recipient.
            (8) Effective date.--The provisions of this subsection shall 
        take effect on the date of the issuance of interim regulations 
        pursuant to subsection (b)(4) of this section.

[[Page 112 STAT. 668]]

    (g) <<NOTE: Deadline. 29 USC 1169 note.>> Report and Recommendations 
Regarding the Enforcement of Qualified Medical Child Support Orders.--
Not later than 8 months after the issuance of the report to the Congress 
pursuant to subsection (a)(5), the Secretary of Health and Human 
Services and the Secretary of Labor shall jointly submit to each House 
of the Congress a report containing recommendations for appropriate 
legislation to improve the effectiveness of, and enforcement of, 
qualified medical child support orders under the provisions of 
subsection (f ) of this section and section 609(a) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1169(a)).

    (h) Technical Corrections.--
            (1) Amendment relating to public law 104-266.--
                    (A) In general.--Subsection (f ) of section 101 of 
                the Employee Retirement Income Security Act of 1974 (29 
                U.S.C. 1021(f )) is repealed.
                    (B) <<NOTE: 29 USC 1021 note.>> Effective date.--The 
                amendment made by subparagraph (A) shall take effect as 
                if included in the enactment of the Act entitled ``An 
                Act to repeal the Medicare and Medicaid Coverage Data 
                Bank'', approved October 2, 1996 (Public Law 104-226; 
                110 Stat. 3033).
            (2) Amendments relating to public law 103-66.--
                    (A) In general.--(i) Section 4301(c)(4)(A) of the 
                Omnibus Budget Reconciliation Act of 1993 (Public Law 
                103-66; 107 Stat. 377) <<NOTE: 29 USC 1144.>> is amended 
                by striking ``subsection (b)(7)(D)'' and inserting 
                ``subsection (b)(7)''.
                    (ii) Section 514(b)(7) of the Employee Retirement 
                Income Security Act of 1974 (29 U.S.C. 1144(b)(7)) is 
                amended by striking ``enforced by'' and inserting ``they 
                apply to''.
                    (iii) Section 609(a)(2)(B)(ii) of such Act (29 
                U.S.C. 1169(a)(2)(B)(ii)) is amended by striking 
                ``enforces'' and inserting ``is made pursuant to''.
                    (B) Child defined.--Section 609(a)(2) of the 
                Employee Retirement Income Security Act of 1974 (29 
                U.S.C. 1169(a)(2)) is amended by adding at the end the 
                following:
                    ``(D) Child.--The term `child' includes any child 
                adopted by, or placed for adoption with, a participant 
                of a group health plan.''.
                    (C) <<NOTE: 29 USC 1144 note.>> Effective date.--The 
                amendments made by subparagraph (A) shall be effective 
                as if included in the enactment of section 4301(c)(4)(A) 
                of the Omnibus Budget Reconciliation Act of 1993.
            (3) Amendment related to public law 105-33.--
                    (A) In general.--Section 609(a)(9) of the Employee 
                Retirement Income Security Act of 1974 (29 U.S.C. 
                1169(a)(9)) is amended by striking ``the name and 
                address'' and inserting ``the address''.
                    (B) <<NOTE: 29 USC 1169 note.>> Effective date.--The 
                amendment made by subparagraph (A) shall be effective as 
                if included in the enactment of section 5611(b) of the 
                Balanced Budget Act of 1997.

SEC. 402. SAFEGUARD OF NEW EMPLOYEE INFORMATION.

    (a) Penalty for Unauthorized Access, Disclosure, or Use of 
Information.--Section 453(l) of the Social Security Act (42 U.S.C. 
653(l)) is amended--
            (1) by striking ``Information'' and inserting the following:

[[Page 112 STAT. 669]]

            ``(1) In general.--Information''; and
            (2) by adding at the end the following:
            ``(2) Penalty for misuse of information in the national 
        directory of new hires.--The Secretary shall require the 
        imposition of an administrative penalty (up to and including 
        dismissal from employment), and a fine of $1,000, for each act 
        of unauthorized access to, disclosure of, or use of, information 
        in the National Directory of New Hires established under 
        subsection (i) by any officer or employee of the United States 
        who knowingly and willfully violates this paragraph.''.

    (b) Limits on Retention of Data in the National Directory of New 
Hires.--Section 453(i)(2) of such Act (42 U.S.C. 653(i)(2)) is amended 
to read as follows:
            ``(2) Data entry and deletion requirements.--
                    ``(A) In general.--Information provided pursuant to 
                section 453A(g)(2) shall be entered into the data base 
                maintained by the National Directory of New Hires within 
                two business days after receipt, and shall be deleted 
                from the data base 24 months after the date of entry.
                    ``(B) 12-month limit on access to wage and 
                unemployment compensation information.--The Secretary 
                shall not have access for child support enforcement 
                purposes to information in the National Directory of New 
                Hires that is provided pursuant to section 
                453A(g)(2)(B), if 12 months has elapsed since the date 
                the information is so provided and there has not been a 
                match resulting from the use of such information in any 
                information comparison under this subsection.
                    ``(C) Retention of data for research purposes.--
                Notwithstanding subparagraphs (A) and (B), the Secretary 
                may retain such samples of data entered in the National 
                Directory of New Hires as the Secretary may find 
                necessary to assist in carrying out subsection ( 
                j)(5).''.

    (c) <<NOTE: Deadline. 42 USC 653 note.>> Notice of Purposes for 
Which Wage and Salary Data are to be Used.--Within 90 days after the 
date of the enactment of this Act, the Secretary of Health and Human 
Services shall notify the Committee on Ways and Means of the House of 
Representatives and the Committee on Finance of the Senate of the 
specific purposes for which the new hire and the wage and unemployment 
compensation information in the National Directory of New Hires is to be 
used. At least 30 days before such information is to be used for a 
purpose not specified in the notice provided pursuant to the preceding 
sentence, the Secretary shall notify the Committee on Ways and Means of 
the House of Representatives and the Committee on Finance of the Senate 
of such purpose.

    (d) <<NOTE: Deadline. 42 USC 653 note.>> Report by the Secretary.--
Within 3 years after the date of the enactment of this Act, the 
Secretary of Health and Human Services shall submit to the Committee on 
Ways and Means of the House of Representatives and the Committee on 
Finance of the Senate a report on the accuracy of the data maintained by 
the National Directory of New Hires pursuant to section 453(i) of the 
Social Security Act, and the effectiveness of the procedures designed to 
provide for the security of such data.

    (e) <<NOTE: 42 USC 653 note.>> Effective Date.--The amendments made 
by this section shall take effect on October 1, 2000.

[[Page 112 STAT. 670]]

SEC. 403. <<NOTE: Grants.>> LIMITATIONS ON USE OF TANF FUNDS FOR 
            MATCHING UNDER CERTAIN FEDERAL TRANSPORTATION PROGRAM.

    (a) In General.--Section 404 of the Social Security Act (42 U.S.C. 
604) is amended by adding at the end the following:
    ``(k) Limitations on Use of Grant for Matching Under Certain Federal 
Transportation Program.--
            ``(1) Use limitations.--A State to which a grant is made 
        under section 403 may not use any part of the grant to match 
        funds made available under section 3037 of the Transportation 
        Equity Act for the 21st Century, unless--
                    ``(A) the grant is used for new or expanded 
                transportation services (and not for construction) that 
                benefit individuals described in subparagraph (C), and 
                not to subsidize current operating costs;
                    ``(B) the grant is used to supplement and not 
                supplant other State expenditures on transportation;
                    ``(C) the preponderance of the benefits derived from 
                such use of the grant accrues to individuals who are--
                          ``(i) recipients of assistance under the State 
                      program funded under this part;
                          ``(ii) former recipients of such assistance;
                          ``(iii) noncustodial parents who are described 
                      in item (aa) or (bb) of section 
                      403(a)(5)(C)(ii)(II); and
                          ``(iv) low-income individuals who are at risk 
                      of qualifying for such assistance; and
                    ``(D) the services provided through such use of the 
                grant promote the ability of such recipients to engage 
                in work activities (as defined in section 407(d)).
            ``(2) Amount limitation.--From a grant made to a State under 
        section 403(a), the amount that a State uses to match funds 
        described in paragraph (1) of this subsection shall not exceed 
        the amount (if any) by which 30 percent of the total amount of 
        the grant exceeds the amount (if any) of the grant that is used 
        by the State to carry out any State program described in 
        subsection (d)(1) of this section.
            ``(3) Rule of interpretation.--The provision by a State of a 
        transportation benefit under a program conducted under section 
        3037 of the Transportation Equity Act for the 21st Century, to 
        an individual who is not otherwise a recipient of assistance 
        under the State program funded under this part, using funds from 
        a grant made under section 403(a) of this Act, shall not be 
        considered to be the provision of assistance to the individual 
        under the State program funded under this part.''.

    (b) <<NOTE: Deadline. 49 USC 5309 note.>> Report to the Congress.--
Not later than 2 years after the date of the enactment of this Act, the 
Secretary of Transportation, in consultation with the Secretary of 
Health and Human Services, shall submit to the Committees on Ways and 
Means and on Transportation and Infrastructure of the House of 
Representatives and the Committees on Finance and on Environment and 
Public Works of the Senate a report that--
            (1) describes the manner in which funds made available under 
        section 3037 of the Transportation Equity Act for the 21st 
        Century have been used;
            (2) describes whether such uses of such funds has improved 
        transportation services for low-income individuals; and

[[Page 112 STAT. 671]]

            (3) contains such other relevant information as may be 
        appropriate.

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

    (a) In General.--Section 466(a)(14)(B) of the Social Security Act 
(42 U.S.C. 666(a)(14)(B)) is amended to read as follows:
                    ``(B) High-volume automated administrative 
                enforcement.--In this part, the term `high-volume 
                automated administrative enforcement', in interstate 
                cases, means, on request of another State, the 
                identification by a State, through automated data 
                matches with financial institutions and other entities 
                where assets may be found, of assets owned by persons 
                who owe child support in other States, and the seizure 
                of such assets by the State, through levy or other 
                appropriate processes.''.

    (b) <<NOTE: 42 USC 666 note.>> Retroactivity.--The amendment made by 
subsection (a) shall take effect as if included in the enactment of 
section 5550 of the Balanced Budget Act of 1997 (Public Law 105-33; 111 
Stat. 633).

SEC. 405. <<NOTE: Deadlines.>> GENERAL ACCOUNTING OFFICE REPORTS.

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

SEC. 406. DATA MATCHING BY MULTISTATE FINANCIAL INSTITUTIONS.

    (a) Use of Federal Parent Locator Service.--Section 466(a)(17)(A)(i) 
of the Social Security Act (42 U.S.C. 666(a)(17)(A)(i)) is amended by 
inserting ``and the Federal Parent Locator Service in the case of 
financial institutions doing business in two or more States,'' before 
``a data match system''.
    (b) Facilitation of Agreements.--Section 452 of such Act (42 U.S.C. 
652) is amended by adding at the end the following:
    ``(l) The Secretary, through the Federal Parent Locator Service, may 
aid State agencies providing services under State programs

[[Page 112 STAT. 672]]

operated pursuant to this part and financial institutions doing business 
in two or more States in reaching agreements regarding the receipt from 
such institutions, and the transfer to the State agencies, of 
information that may be provided pursuant to section 466(a)(17)(A)(i), 
except that any State that, as of the date of the enactment of this 
subsection, is conducting data matches pursuant to section 
466(a)(17)(A)(i) shall have until January 1, 2000, to allow the 
Secretary to obtain such information from such institutions that are 
operating in the State. For purposes of section 1113(d) of the Right to 
Financial Privacy Act of 1978, a disclosure pursuant to this subsection 
shall be considered a disclosure pursuant to a Federal statute.''.
    (c) Protection Against Liability.--Section 469A(a) of such Act (42 
U.S.C. 669a(a)) is amended by inserting ``, or for disclosing any such 
record to the Federal Parent Locator Service pursuant to section 
466(a)(17)(A)'' before the period.

SEC. 407. ELIMINATION OF UNNECESSARY DATA REPORTING.

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

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

    ``(a) In General.--With respect to each type of service described in 
subsection (b), the Secretary shall collect and maintain up-to-date 
statistics, by State, and on a fiscal year basis, on--
            ``(1) the number of cases in the caseload of the State 
        agency administering the plan approved under this part in which 
        the service is needed; and
            ``(2) the number of such cases in which the service has 
        actually been provided.

    ``(b) Types of Services.--The statistics required by subsection (a) 
shall be separately stated with respect to paternity establishment 
services and child support obligation establishment services.
    ``(c) Types of Service Recipients.--The statistics required by 
subsection (a) shall be separately stated with respect to--
            ``(1) recipients of assistance under a State program funded 
        under part A or of payments or services under a State plan 
        approved under part E; and
            ``(2) individuals who are not such recipients.''; and
            (2) in subsection (c), by striking ``(c)'' and inserting 
        ``(d) Rule of Interpretation.--''.

    (b) Conforming Amendment.--Section 452(a)(10) of such Act (42 U.S.C. 
652(a)(10)) is amended--
            (1) by adding ``and'' at the end of subparagraph (H); and
            (2) by striking subparagraph (I) and redesignating 
        subparagraph (J) as subparagraph (I).

    (c) <<NOTE: Applicability. 42 USC 652 note.>> Effective Date.--The 
amendments made by this section shall apply to information maintained 
with respect to fiscal year 1995 or any succeeding fiscal year.

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

    Section 403(a)(5)(C)(ii) of the Social Security Act (42 U.S.C. 
603(a)(5)(C)(ii)) is amended--

[[Page 112 STAT. 673]]

            (1) in the matter preceding subclause (I) by striking ``of 
        minors whose custodial parent is such a recipient'';
            (2) in subclause (I), by inserting ``or the noncustodial 
        parent'' after ``recipient''; and
            (3) in subclause (II), by striking ``The individual--'' and 
        inserting ``The recipient or the minor children of the non-
        custodial parent--''.

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

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

SEC. 410. TECHNICAL CORRECTIONS.

    (a) Section 413(g)(1) of the Social Security Act (42 U.S.C. 
613(g)(1)) is amended by striking ``Economic and Educational 
Opportunities'' and inserting ``Education and the Workforce''.
    (b) Section 422(b)(2) of the Social Security Act (42 U.S.C. 
622(b)(2)) is amended by striking ``under under'' and inserting 
``under''.
    (c) <<NOTE: 42 USC 629b.>> Section 432(a)(8) of the Social Security 
Act (42 U.S.C. 632(a)(8)) is amended by adding ``; and'' at the end.

    (d) Section 453(a)(2) of the Social Security Act (42 U.S.C. 
653(a)(2)) is amended--
            (1) by striking ``parentage,'' and inserting ``parentage 
        or'';
            (2) by striking ``or making or enforcing child custody or 
        visitation orders,''; and
            (3) in subparagraph (A), by decreasing the indentation of 
        clause (iv) by 2 ems.

    (e)(1) <<NOTE: Effective dates.>> Section 5557(b) of the Balanced 
Budget Act of 1997 (42 U.S.C. 608 note) is amended by adding at the end 
the following: ``The amendment made by section 5536(1)(A) shall not take 
effect with respect to a State until October 1, 2000, or such earlier 
date as the State may select.''.

    (2) <<NOTE: 42 USC 608 note.>> The amendment made by paragraph (1) 
shall take effect as if included in the enactment of section 5557 of the 
Balanced Budget Act of 1997 (Public Law 105-33; 111 Stat. 637).

    (f ) Section 473A(c)(2)(B) of the Social Security Act (42 U.S.C. 
673b(c)(2)(B)) is amended--
            (1) by striking ``November 30, 1997'' and inserting ``April 
        30, 1998''; and
            (2) by striking ``March 1, 1998'' and inserting ``July 1, 
        1998''.

[[Page 112 STAT. 674]]

    (g) Section 474(a) of the Social Security Act (42 U.S.C. 674(a)) is 
amended by striking ``(subject to the limitations imposed by subsection 
(b))''.
    (h) Section 232 of the Social Security Act Amendments of 1994 (42 
U.S.C. 1314a) is amended--
            (1) in subsection (b)(3)(D), by striking ``Energy and''; and
            (2) in subsection (d)(4), by striking ``(b)(3)(C)'' and 
        inserting ``(b)(3)''.

    Approved July 16, 1998.

LEGISLATIVE HISTORY--H.R. 3130:
---------------------------------------------------------------------------

HOUSE REPORTS: No. 105-422 (Comm. on Ways and Means).
CONGRESSIONAL RECORD, Vol. 144 (1998):
            Mar. 5, considered and passed House.
            Apr. 2, considered and passed Senate, amended.
            June 25, House concurred in Senate amendments with 
                amendments.
            June 26, Senate concurred in House amendments.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 34 (1998):
            July 16, Presidential statement.

                                  <all>