< Back to H.R. 195 (104th Congress, 1995–1996)

Text of the Interstate Child Support Enforcement Act

This bill was introduced on January 4, 1995, in a previous session of Congress, but was not enacted. The text of the bill below is as of Jan 4, 1995 (Introduced).

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HR 195 IH

104th CONGRESS

1st Session

H. R. 195

Entitled ‘Interstate Child Support Enforcement Act’.

IN THE HOUSE OF REPRESENTATIVES

January 4, 1995

Mrs. ROUKEMA introduced the following bill; which was referred to the Committee on Ways and Means and, in addition, to the Committees on the Judiciary, Banking and Financial Services, National Security, and Economic and Educational Opportunities for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned


A BILL

Entitled ‘Interstate Child Support Enforcement Act’.

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

SECTION 1. SHORT TITLE; REFERENCE; TABLE OF CONTENTS.

    (a) SHORT TITLE- This Act may be cited as the ‘Interstate Child Support Enforcement Act’.

    (b) REFERENCE TO SOCIAL SECURITY ACT- Except as otherwise specifically provided, whenever in this Act an amendment is expressed in terms of an amendment to or repeal of a section or other provision, the reference shall be considered to be made to that section or other provision of the Social Security Act.

    (c) TABLE OF CONTENTS- The table of contents of this Act is as follows:

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

      Sec. 2. Findings, declarations, and purposes.

TITLE I--LOCATE AND CASE TRACKING

      Sec. 101. Expansion of use of Federal parent locator system.

      Sec. 102. Expansion of data bases accessed by parent locator systems.

      Sec. 103. Expansion of access to national network for location of parents.

      Sec. 104. Private attorney access to locate and enforcement services.

      Sec. 105. Access to law enforcement systems of records.

      Sec. 106. State networks for broadcasting warrants.

TITLE II--ESTABLISHMENT

      Sec. 201. Service of process.

      Sec. 202. Service of process on Federal employees and members of the armed services relating to child support, alimony, and parentage obligations.

      Sec. 203. Presumed address of obligor and obligee.

      Sec. 204. Notification to custodial parents.

      Sec. 205. State uniformity regarding establishment of parentage and support, jurisdiction and venue, and Federal employee residential status.

      Sec. 206. Fair Credit Reporting Act amendments.

      Sec. 207. National Child Support Guideline Commission.

      Sec. 208. State child support guideline principles.

      Sec. 209. Duration of support.

      Sec. 210. National subpoena duces tecum.

      Sec. 211. Uniform terms in orders.

      Sec. 212. Social security numbers on marriage licenses and child support orders.

      Sec. 213. Administrative subpoena power.

TITLE III--PARENTAGE

      Sec. 301. Parentage.

TITLE IV--ENFORCEMENT

      Sec. 401. Anti-assignment clauses amended.

      Sec. 402. National reporting of new hires and child support information.

      Sec. 403. Direct income withholding.

      Sec. 404. Priority of wage withholding.

      Sec. 405. Definition of income subject to withholding includes workers’ compensation.

      Sec. 406. Consumer Credit Protection Act amendments.

      Sec. 407. Election of remedies prohibition.

      Sec. 408. Occupational, professional and business licenses

      Sec. 409. Driver’s licenses.

      Sec. 410. Attachment of bank accounts.

      Sec. 411. Lotteries, settlements, payouts, awards, and forfeitures.

      Sec. 412. Fraudulent transfer pursuit.

      Sec. 413. Full IRS collection.

      Sec. 414. Bonds.

      Sec. 415. Tax offset for non-AFDC post-minor child.

      Sec. 416. Attachment of public and private retirement funds.

      Sec. 417. Criminal nonsupport.

      Sec. 418. Statutes of limitation.

      Sec. 419. Interest.

      Sec. 420. Health-care enforcement.

      Sec. 421. Bankruptcy.

      Sec. 422. Federal Government cooperation in enforcement of support obligations of members of the armed forces and other persons entitled to payments by the Federal Government.

      Sec. 423. UIFSA endorsement.

TITLE V--COLLECTION AND DISTRIBUTION

      Sec. 501. Priority of distribution of collections.

      Sec. 502. Relationship of AFDC to CSE--limiting reimbursement claims to award amount.

      Sec. 503. Fees for non-AFDC clients.

      Sec. 504. Collection and disbursement points for child support.

TITLE VI--FEDERAL ROLE

      Sec. 601. Placement and role of the Federal Child Support Agency.

      Sec. 602. Training.

      Sec. 603. Staffing.

      Sec. 604. Funding and incentives for child support agencies.

      Sec. 605. Child support definition.

      Sec. 606. Audits.

      Sec. 607. Child support assurance demonstration projects.

TITLE VII--STATE ROLE

      Sec. 701. Prohibition of residency requirement for IV-D services.

      Sec. 702. Advocating for children’s economic security.

      Sec. 703. Duties of IV-D agencies.

      Sec. 704. Broader access to services.

      Sec. 705. Process for change of payee in IV-D cases.

TITLE VIII--EFFECTIVE DATE

      Sec. 801. Effective date.

SEC. 2. FINDINGS, DECLARATIONS, AND PURPOSES.

    (a) FINDINGS- The Congress finds that--

      (1) there is a large and growing number of child support and parentage cases annually involving disputes between parents or presumed parents who reside in different States;

      (2) the laws by which the courts of the various States determine their authority to establish, enforce, or modify a child support order, or to establish parentage are not uniform;

      (3) those laws, along with the limits imposed by a Federal system, on the authority of each State to take certain actions outside its own boundaries, contribute to--

        (A) the pressing problem of parties moving to avoid jurisdiction,

        (B) inequities based solely on choice of domicile,

        (C) disregard of court orders resulting in massive arrearages nationwide,

        (D) excessive relitigation of cases,

        (E) the establishment of conflicting orders by the courts of various States, and

        (F) inter-jurisdiction travel and communication that is so expensive and time consuming as to disrupt parties’ occupations and commercial activities; and

      (4) among the results of these conditions are--

        (A) the failure of the courts of such jurisdictions to give full faith and credit to the judicial proceedings of the other States,

        (B) the deprivation of rights of liberty and property without due process of law,

        (C) burdens on commerce among the States, and

        (D) harm to the welfare of children and their parents and other custodians.

    (b) DECLARATION- Based on the findings stated in subsection (a), it is necessary to establish national standards under which the courts of each State will determine their jurisdiction to establish, enforce, or modify a child support order, or to establish parentage and the effect to be given by each State to such determinations by the courts of other States.

    (c) PURPOSE- The general purposes of this Act are to--

      (1) expand the forums available to establish, enforce, or modify a child support order, or to establish parentage so that such actions may be heard in the State that has the strongest interest in the child’s financial security;

      (2) promote and expand the exchange of information and other forms of mutual assistance between States that are concerned with the same child;

      (3) facilitate the enforcement of support decrees among the States;

      (4) discourage continuing interstate controversies over child support in the interest of greater financial stability and secure family relationships for the child; and

      (5) avoid jurisdictional competition and conflict between courts in matters relating to the establishment, enforcement, and modification of child support orders, and to the establishment of parentage, which have resulted in the movement of parties among States and a low percentage of interstate cases with support orders, thereby adversely affecting children’s well-being.

    (d) DEFINITIONS- For purposes of this Act--

      (1) STATE- The term ‘State’ means a State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, a territory or possession of the United States, and Indian country as defined in section 1151 of title 18, United States Code.

      (2) COURT- The term ‘court’ means a court, administrative process, or quasijudicial process of a State that is authorized to--

        (A) establish and enforce parentage orders;

        (B) establish and enforce orders regarding the amount of support payable by a contestant; or

        (C) modify orders regarding the amount of support payable by a contestant.

TITLE I--LOCATE AND CASE TRACKING

SEC. 101. EXPANSION OF USE OF FEDERAL PARENT LOCATOR SYSTEM.

    Section 453 (42 U.S.C. 653) is amended--

      (1) by striking ‘for the purpose of enforcing support obligations against such parent’ in subsection (a) and inserting ‘for the purposes of parentage establishment, child support establishment, modification, and enforcement, and child visitation enforcement, provided that safeguards are in place to prevent release of information when it may jeopardize the safety of the children or either parent’, and

      (2) by inserting ‘and such reasonable fees’ after ‘such documents’ in subsection (d).

SEC. 102. EXPANSION OF DATA BASES ACCESSED BY PARENT LOCATOR SYSTEMS.

    (a) ADDITIONAL INFORMATION FOR FEDERAL PARENT LOCATOR SERVICE- Section 453 (42 U.S.C. 653) is amended--

      (1) by striking ‘the most recent address and place of employment’ in subsection (b) and inserting ‘the most recent residential address, employer name and address, and amounts and nature of income and assets’,

      (2) by striking ‘the resident parent’ in subsection (c)(3) and inserting ‘either parent’, and

      (3) by adding at the end of subsection (e) the following new paragraph:

    ‘(4) The Secretary of the Treasury shall enter into an agreement with the Secretary to provide prompt access for the Secretary (in accordance with this subsection and section 6103(l)(6) of the Internal Revenue Code of 1986) to the quarterly estimated Federal income tax returns filed by individuals with the Internal Revenue Service.’.

    (b) STATE INFORMATION- Section 466(a) (42 U.S.C. 666(a)) is amended by inserting after paragraph (11) the following new paragraphs:

      ‘(12) Procedures under which the State agency shall have automated on-line or batch access (or, if necessary, nonautomated access) to information regarding residential addresses, employers and employer addresses, income and assets, and medical insurance benefits with respect to absent parents through various data bases. Such data bases shall include data bases belonging to--

        ‘(A) the State revenue or taxation department;

        ‘(B) the State motor vehicle registration department;

        ‘(C) the State employment security department;

        ‘(D) the State crime information system;

        ‘(E) the State bureau of corrections;

        ‘(F) the State recreational, occupational, and professional licensing department;

        ‘(G) the Secretary of State’s office;

        ‘(H) the State bureau of vital statistics;

        ‘(I) State or local agencies administering public assistance;

        ‘(J) State or local real and personal property record departments;

        ‘(K) publicly regulated utility companies located in the State;

        ‘(L) credit reporting agencies located in the State; and

        ‘(M) trade and labor unions located in the State.

      ‘(13) Procedures under which the State agency shall maintain a child support order registry which shall include--

        ‘(A) each child support order in the State in which the parties agree to the inclusion of such order in the registry; and

        ‘(B) at the option of the State, all other child support orders in the State.’.

    (c) SENSE OF THE CONGRESS- It is the sense of the Congress that the Secretary of Health and Human Services should investigate pursuant to section 453(e) of the Social Security Act (42 U.S.C. 653(e)) accessing Federal data banks not already linked to the Parent Locator Service which are deemed more-than-marginally useful to locate absent parents.

    (d) EFFECTIVE DATE- The amendments made by subsections (a) and (b) shall take effect on and after January 1, 1998.

SEC. 103. EXPANSION OF ACCESS TO NATIONAL NETWORK FOR LOCATION OF PARENTS.

    (a) IN GENERAL- Section 453 (42 U.S.C. 653) is amended by adding at the end the following new subsection:

    ‘(g) The Secretary, through the Office of Child Support Enforcement, shall expand the Parent Locator System, established under this section to provide a national network based on the comprehensive statewide child support enforcement systems developed by the various States. Such an expansion would--

      ‘(1) allow each State to--

        ‘(A) locate any absent parent who owes a child support obligation, for whom an obligation is being established, or for whom an order for visitation is being enforced by--

          ‘(i) accessing the records of other State agencies and sources of locate information, and

          ‘(ii) accessing Federal sources of locate information in the same fashion;

        ‘(B) access the files of other States to determine whether there are other child support orders and obtain the details of those orders;

        ‘(C) provide for both on-line and batch processing of locate requests, with on-line access restricted to cases in which the information is needed immediately (i.e., court appearances) and batch processing used to ‘troll’ data bases to locate individuals or update information periodically; and

        ‘(D) direct locate requests to individual States or Federal agencies, broadcast requests to selected States, or broadcast cases to all States when there is no indication of the source of needed information;

      ‘(2) provide for a maximum of 72-hour turnaround time for information to be broadcast and returned to a requesting State;

      ‘(3) provide ready access to courts of the information on the network; and

      ‘(4) access the registry of child support orders for public and private cases maintained at the State level by the State agencies as described in section 466(a)(13).’.

    (b) EXPANDED STATE INTERACTION WITH NATIONAL NETWORK- Section 454(16) (42 U.S.C. 654(16)) is amended--

      (1) by striking ‘and (E)’ and inserting ‘(E)’, and

      (2) by striking ‘enforcement;’ at the end of subparagraph (E) and inserting ‘enforcement, and (F) to provide access to the national network developed pursuant to section 453(g);’.

    (c) EFFECTIVE DATE- The amendments made by this section shall take effect on and after January 1, 1998.

SEC. 104. PRIVATE ATTORNEY ACCESS TO LOCATE AND ENFORCEMENT SERVICES.

    Section 466(a) (42 U.S.C. 666(a)), as amended by section 102, is amended by inserting after paragraph (13) the following new paragraph:

      ‘(14) Procedures under which private attorneys and pro se obligees are given access to State locate information and enforcement techniques of the State child support enforcement agency, for the limited purpose of establishing, modifying, and enforcing child support, visitation, and parentage orders, provided that safeguards are in place to prevent release of information when it may jeopardize the safety of the children or either parent. Such procedures may provide for reasonable fees for such access.’.

SEC. 105. ACCESS TO LAW ENFORCEMENT SYSTEMS OF RECORDS.

    The head of the National Criminal Information Center, of the National Law Enforcement Telecommunications Network, and of any other national or regional system for tracking individuals shall--

      (1) allow access to Federal, State, and local child support enforcement agencies to information held by the Center, Network, or other system; and

      (2) if an access code is required to allow such access, provide an access code to each child support enforcement agency that applies for one.

SEC. 106. STATE NETWORKS FOR BROADCASTING WARRANTS.

    Section 466(a) (42 U.S.C. 666(a)), as amended by section 104, is amended by inserting after paragraph (14) the following new paragraph:

      ‘(15) Procedures under which the State--

        ‘(A) shall make available for broadcasting on its local and State crime information system failure-to-appear warrants, capiases and bench warrants issued by courts in civil and criminal parentage and child support proceedings; and

        ‘(B) if a defendant or anyone on behalf of the defendant posts security after being arrested, shall remit any subsequent forfeiture to the individual owed the child support obligation to the extent of any arrearage in such obligation.’.

TITLE II--ESTABLISHMENT

SEC. 201. SERVICE OF PROCESS.

    Section 466(a) (42 U.S.C. 666(a)), as amended by section 106, is amended by inserting after paragraph (15) the following new paragraph:

      ‘(16) Procedures under which the State shall--

        ‘(A) treat out-of-State service of process in child support and parentage actions in the same manner as in-State service of process;

        ‘(B) require that notice for the exercise of jurisdiction over nonresident be given in a manner reasonably calculated to give actual notice and may be--

          ‘(i) by personal delivery outside the State in the manner prescribed for service of process within the State;

          ‘(ii) in the manner prescribed by the law of the place in which the service is made;

          ‘(iii) by first-class mail addressed to the individual to be served (if allowed by the State’s rules of civil procedure) or any other form of mail that includes a request for a receipt or signature of such individual, subject to the requirements of such rules of civil procedure; or

          ‘(iv) as directed by the court, including publication if other means of notification are ineffective, subject to the requirements of the State’s rules of civil procedure;

        ‘(C) require that notice to commence a child support or parentage action be delivered, mailed, or published with sufficient time to allow for serving an answer or other response before any hearing in the State, in accordance with the otherwise applicable rule regarding the commencement of an original action in the State;

        ‘(D) require notice of the commencement of a child support or parentage action to each party whose rights, privileges, duties, or powers may be affected by the action;

        ‘(E) require that proof of service outside the State may be made by the affidavit of the individual who made the service, or in the manner prescribed by the law of the State, by the order under which the service is made, or by the law of the place in which service is made, and if service is made by mail, proof of service may be by a receipt signed by the addressee or other evidence of delivery to the addressee; and

        ‘(F) require the availability of first-class mail service after the service of the summons and initial pleadings.’.

SEC. 202. SERVICE OF PROCESS ON FEDERAL EMPLOYEES AND MEMBERS OF THE ARMED SERVICES RELATING TO CHILD SUPPORT, ALIMONY, AND PARENTAGE OBLIGATIONS.

    (a) IN GENERAL- Part D of title IV is amended by inserting after section 460 the following new section:

‘SERVICE OF PROCESS ON FEDERAL EMPLOYEES AND MEMBERS OF THE ARMED SERVICES RELATING TO CHILD SUPPORT, ALIMONY, AND PARENTAGE OBLIGATIONS.

    ‘SEC. 460A. (a) The head of each agency shall designate an agent for receipt of service of process for any employee or member of the armed services of such agency relating to any action filed in a State court to establish, enforce, or modify a child support order or an alimony order, or to establish parentage.

    ‘(b) The agent designated under subsection (a) shall receive service of process--

      ‘(1) at the designated post of duty or regular place of business of the employee or member of the armed services; or

      ‘(2) at a location within the United States for an employee or member of the uniformed services whose post of duty is outside of the United States.

    ‘(c) Nothing in this section shall be construed to prohibit any employee or member of the armed services from requesting or being granted a stay or continuance in any action in a Federal or State court, including any relief available under the Soldiers and Sailors Civil Relief Act of 1940 (50 U.S.C. App. 501 et seq.).

    ‘(d) For purposes of this section, the term ‘agency’ means each agency of the Federal Government, including--

      ‘(1) an Executive agency as defined under section 105 of title 5, United States Code;

      ‘(2) the Department of Defense with regard to employees of such department and members of the armed services;

      ‘(3) the United States Postal Service and Postal Rate Commission;

      ‘(4) any agency of the government of the District of Columbia;

      ‘(5) any agency of the legislative or judicial branch of the Government; and

      ‘(6) any advisory committee to which the Federal Advisory Committee Act (5 U.S.C. App. 2) applies.’.

    (b) CONFORMING AMENDMENT FOR GARNISHMENT PROCEEDINGS- Section 459(b) (42 U.S.C. 659(b)) is amended--

      (1) by inserting ‘(1)’ after ‘(b)’; and

      (2) by adding at the end thereof the following new paragraph:

    ‘(2) With respect to any Federal employee, including any member of the armed services, the agent designated under paragraph (1) shall receive service of process--

      ‘(A) at the designated post of duty or regular place of business of the employee or member of the armed services; or

      ‘(B) at a location within the United States for an employee or member of the armed services whose post of duty is outside of the United States.

    ‘(3) Nothing in this section shall be construed to prohibit any employee or member of the armed services from requesting or being granted a stay or continuance in any action in a Federal or State court, including any relief available under the Soldiers and Sailors Civil Relief Act of 1940 (50 U.S.C. App. 501 et seq.).’.

    (c) REGULATIONS- No later than 270 days after the date of the enactment of this Act, the head of each agency shall promulgate and publish regulations implementing the amendments made by this section.

SEC. 203. PRESUMED ADDRESS OF OBLIGOR AND OBLIGEE.

    Section 466(a) (42 U.S.C. 666(a)), as amended by section 201, is amended by inserting after paragraph (16) the following new paragraph:

      ‘(17) Procedures under which the State shall--

        ‘(A) require the filing of parents’ residential addresses, mailing addresses, home telephone numbers, driver’s license numbers, social security numbers, names of employers, addresses of places of employment, and work telephone numbers with the appropriate court or administrative agency, on or before the date the final order is issued;

        ‘(B) create the presumption that for the purpose of providing sufficient notice in any support-related action other than the initial notice in an action to establish parentage or establish a child support order that the last residential address of the party given to the appropriate agency or court is the current address of the party; and

        ‘(C) ensure that information concerning the location of a parent or child shall not be released to the other parent if there is a court order for the physical protection of one parent or child entered against the other parent.’.

SEC. 204. NOTIFICATION TO CUSTODIAL PARENTS.

    Section 454 (42 U.S.C. 654) is amended by striking ‘and’ at the end of paragraph (23), by striking the period at the end of paragraph (24) and inserting ‘; and’, and by inserting after paragraph (24) the following new paragraph:

      ‘(25) provide that the agency administering the plan--

        ‘(A) notify any individual owed a child support obligation of all hearings in which such obligation might be established, modified, or enforced, in a timely fashion to allow custodial parents the opportunity to attend and present evidence to the court, except that failure to actually notify such individual may not be used as a ground for delay and shall not prevent a court from rendering a decision if the agency made reasonable attempts to provide such notice; and

        ‘(B) provide custodial parents with a copy of any order that establishes, modifies, or enforces a child support obligation within 14 days of the date of the issuance of such order.’.

SEC. 205. STATE UNIFORMITY REGARDING ESTABLISHMENT OF PARENTAGE AND SUPPORT, JURISDICTION AND VENUE, AND FEDERAL EMPLOYEE RESIDENTIAL STATUS.

    Section 466(a) (42 U.S.C. 666(a)), as amended by section 203, is amended by inserting after paragraph (17) the following new paragraph:

      ‘(18) Procedures under which within the State--

        ‘(A) a party seeking both parentage and child support establishment shall be able to bring both in a single cause of action;

        ‘(B) the venue for parentage establishment shall be in the county of residence of the child, when the child and alleged parent who is the defendant reside in different counties within the State;

        ‘(C) a court or agency that issues a parentage or child support order shall have continuing and exclusive jurisdiction over the order until that court or agency transfers jurisdiction to the appropriate court or agency in the county where the child resides, or the parties consent to be bound by another court or agency in the State that has subject matter jurisdiction;

        ‘(D) proceedings for purposes of enforcement and modification shall be transferred to the city, county, or district where the child resides without the need for refiling by the plaintiff or re-serving the defendant;

        ‘(E) a court or agency that hears parentage or child support claims shall have statewide jurisdiction over the parties, and the parentage and child support orders issued by the court or agency shall have statewide effect for enforcement purposes; and

        ‘(F) visitation denial is not a defense to child support enforcement and the nonpayment of support is not a defense to visitation enforcement.’.

SEC. 206. FAIR CREDIT REPORTING ACT AMENDMENTS.

    Section 604 of the Consumer Credit Protection Act (15 U.S.C. 1681b) is amended by adding at the end thereof the following new paragraph:

    ‘(4) To an agency administering a State plan under section 454 of the Social Security Act (42 U.S.C. 654) to use the information relevant to the setting of an initial or modified child support award, without the necessity of a court order.’.

SEC. 207. NATIONAL CHILD SUPPORT GUIDELINE COMMISSION.

    (a) ESTABLISHMENT- There is hereby established a commission to be known as the ‘National Child Support Guidelines Commission’ (in this section referred to as the ‘Commission’).

    (b) GENERAL DUTIES- The Commission shall convene a conference to study the desirability of a national child support guideline, and if such guideline is advisable, the Commission shall develop for congressional consideration a national child support guideline that is based on the conference’s study of various guideline models, the deficiencies of such models and any needed improvements.

    (c) MEMBERSHIP-

      (1) NUMBER; APPOINTMENT-

        (A) IN GENERAL- The Commission shall be composed of 9 individuals appointed jointly by the Secretary of Health and Human Services and the Congress, not later than January 15, 1994.

        (B) QUALIFICATIONS OF MEMBERS- Members of the Commission shall be appointed from among those who are able to provide expertise and experience in the evaluation and development of child support guidelines. At least 2 of the members shall represent parent child support advocacy groups.

      (2) TERMS OF OFFICE- Each member shall be appointed for a term of 1 year. A vacancy in the Commission shall be filled in the manner in which the original appointment was made.

    (d) COMMISSION POWERS, COMPENSATION, ACCESS TO INFORMATION, AND SUPERVISION- The first sentence of subparagraph (C), the first and third sentences of subparagraph (D), subparagraph (F) (except with respect to the conduct of medical studies), clauses (ii) and (iii) of subparagraph (G), and subparagraph (H) of section 1886(e)(6) of the Social Security Act shall apply to the Commission in the same manner in which such provisions apply to the Prospective Payment Assessment Commission.

    (e) REPORT- Not later than 1 year after the appointment of members, the Commission shall report to the President and the Congress on the results of the study described in subsection (b) and the final assessment by the Commission of issues relating to a national child support guideline.

    (f) TERMINATION- The Commission shall terminate upon the submission of the report described in subsection (e).

SEC. 208. STATE CHILD SUPPORT GUIDELINE PRINCIPLES.

    Section 467 (42 U.S.C. 667) is amended by adding at the end the following new subsections:

    ‘(d) The guidelines established pursuant to subsection (a) shall include the following principles:

      ‘(1) A change in the child support amount resulting from the application of the guidelines since the entry of the last support order is sufficient reason for modification of a child support obligation without the necessity of showing any other change in circumstance.

      ‘(2) Any custodial parent requesting a review of a child support award who is not receiving aid for families with dependent children under part A of this title must agree to both review and modification of such award. Such custodial parent shall be advised of a recalculated support amount based on such review and given an opportunity to decline the pursuit of the modification.

    ‘(e) The guidelines established pursuant to subsection (a) shall take into account the following:

      ‘(1) Work-related or job-training-related child care expenses of either parent for the care of children of either parent.

      ‘(2) Health insurance and related uninsured health care expenses, and extraordinary school expenses incurred on behalf of the child of such parents for whom the child support order is sought.

      ‘(3) Multiple family child raising obligations other than those for the child for whom the child support order is sought.’.

SEC. 209. DURATION OF SUPPORT.

    Section 466(a) (42 U.S.C. 666(a)), as amended by section 205, is amended by inserting after paragraph (18) the following new paragraph:

      ‘(19) Procedures under which the State--

        ‘(A) requires a continuing support obligation by one or both parents until at least the latter of when a child reaches the age of eighteen, or graduates from or is no longer enrolled in secondary school or its equivalent, unless a child marries, or is otherwise emancipated by a court of competent jurisdiction;

        ‘(B) provides that courts with child support jurisdiction have the discretionary power, pursuant to criteria established by the State, to order--

          ‘(i) child support, payable to an adult child, at least up to the age of 22 for a child enrolled in an accredited postsecondary or vocational school or college and who is a student in good standing;

          ‘(ii) either or both parents to pay for postsecondary school support based on each parent’s financial ability to pay;

        ‘(C) provides for child support to continue beyond the child’s age of majority provided the child is disabled, unable to be self-supportive, and the disability arose during the child’s minority; and

        ‘(D) provides that courts should consider the effect of child support received on means-tested governmental benefits and whether to credit governmental benefits against a support award amount.’.

SEC. 210. NATIONAL SUBPOENA DUCES TECUM.

    Section 452(a) (42 U.S.C. 652(a)) is amended by striking ‘and’ at the end of paragraph (9), by striking the period at the end of paragraph (10), and by inserting after paragraph (10) the following new paragraphs:

      ‘(11) draft and distribute a national subpoena duces tecum for use by local and State child support agencies and child support litigants to reach income information pertaining to all private, Federal, State, and local government employees, as well as any receivers of income, such subpoena duces tecum--

        ‘(A) to be limited to evidence regarding the prior 12 months of income or evidence of accumulated income to date,

        ‘(B) to be honored by payors with the timely mailing of the information to a supplied address on the subpoena,

        ‘(C) to be enforced by a hearing held in the payor’s State at which time the payor bears, under penalty of State sanction, the burden of specifying the reasons for not timely honoring the subpoena, and

        ‘(D) the information of which is to be admitted once offered to prove the truth of the matter asserted; and

      ‘(12) establish a simplified certification process and admissibility procedure for out-of-State documents in child support or parentage cases.’.

SEC. 211. UNIFORM TERMS IN ORDERS.

    Section 452(a) (42 U.S.C. 652(a)), as amended by section 210, is amended by striking ‘and’ at the end of paragraph (11), by striking the period at the end of paragraph (12) and inserting ‘; and’, and by inserting after paragraph (12) the following new paragraph:

      ‘(13) develop, in conjunction with State executive and judicial organizations, a uniform abstract of a child support order, to be used by all State courts to record the facts of a child support order in a registry of child support orders established under section 466(a)(12), such abstract to include--

        ‘(A) the date that support payments are to commence;

        ‘(B) the circumstances upon which support payments are to terminate;

        ‘(C) the amount of current child support expressed as a sum certain, arrearages expressed as a sum certain as of a certain date, and any payback schedule for the arrearages;

        ‘(D) whether the support award is in a lump sum (nonallocated) or per child;

        ‘(E) if the award is lump sum, the event causing a change in the support award and the amount of any change;

        ‘(F) other expenses, such as those for child care and health care;

        ‘(G) names of the parents;

        ‘(H) social security numbers and dates of birth of the parents;

        ‘(I) names of all children covered by the order;

        ‘(J) dates of birth and social security numbers of children covered by the order;

        ‘(K) court identification (FIPS code, name and address) of the court issuing the order;

        ‘(L) health-care support information; and

        ‘(M) party to contact when additional information is obtained.’.

SEC. 212. SOCIAL SECURITY NUMBERS ON MARRIAGE LICENSES AND CHILD SUPPORT ORDERS.

    Section 466(a) (42 U.S.C. 666(a)), as amended by section 209, is amended by inserting after paragraph (19) the following new paragraph:

      ‘(20) Procedures under which social security numbers of the individuals applying for a marriage license are listed on the license by each applicant’s name.’.

SEC. 213. ADMINISTRATIVE SUBPOENA POWER.

    Section 466(a) (42 U.S.C. 666(a)), as amended by section 212, is amended by inserting after paragraph (20) the following new paragraph:

      ‘(21) Procedures under which the State agency may issue subpoenas that require the individual served to produce and deliver documents to or to appear at a court or administrative agency on a certain date and may sanction an individual for failing to obey the subpoena’s command.’.

TITLE III--PARENTAGE

SEC. 301. PARENTAGE.

    (a) STATE PLAN- Section 454 (42 U.S.C. 654), as amended by section 204, is amended by striking ‘and’ at the end of paragraph (24), by striking the period at the end of paragraph (25) and inserting ‘; and’, and by inserting after paragraph (25) the following new paragraph:

      ‘(26) in order to encourage voluntary paternity acknowledgement, provide for--

        ‘(A) the development and distribution of material at schools, hospitals, agencies administering the programs under part A of this title and title XIX, prenatal health-care providers, WIC programs, health departments, clinics, and other appropriate locations that describe the benefits and responsibilities of paternity establishment and the process by which paternity services may be obtained,

        ‘(B) outreach programs at hospitals and birthing facilities and programs for prenatal care, child birth, and parenting, and

        ‘(C) the use of consent procedures.’.

    (b) ENHANCED FEDERAL MATCH- Section 455(a)(1) (42 U.S.C. 655(a)(1)) is amended by striking ‘and’ at the end of subparagraph (B), by inserting ‘and’ after the semicolon at the end of subparagraph (C), and by inserting after subparagraph (C) the following new subparagraph:

        ‘(D) equal to 90 percent (rather than the percentage specified in subparagraph (A)) of so much of the sums expended during such quarter as are attributable to costs incurred in carrying out the purposes of section 454(26);’.

TITLE IV--ENFORCEMENT

SEC. 401. ANTI-ASSIGNMENT CLAUSES AMENDED.

    Section 462(f)(2) (42 U.S.C. 662(f)(2)) is amended by striking ‘(not including’ and all that follows through ‘compensation)’.

SEC. 402. NATIONAL REPORTING OF NEW HIRES AND CHILD SUPPORT INFORMATION.

    (a) FEDERAL IMPLEMENTATION OF SYSTEM-

      (1) IN GENERAL- The Secretary of the Treasury, in consultation with the Secretary of Labor, shall establish a system of reporting of new employees by requiring employers to provide a copy of every new employee’s W-4 form to the child support enforcement agency of the State in which the employment is located.

      (2) EXPANDED USE OF FORM- The Secretary of the Treasury shall modify the W-4 form completed by the new employee to include--

        (A) whether a child support obligation is owed by the new employee, and if so, to whom such obligation is payable and the amount of such obligation,

        (B) whether payment of such obligation is to be by income withholding, and

        (C) whether the new employee has health care insurance available.

      (3) EMPLOYER WITHHOLDING OBLIGATION-

        (A) IN GENERAL- Subtitle C of the Internal Revenue Code of 1986 (relating to employment taxes) is amended by inserting after chapter 24 the following new chapter:

‘CHAPTER 24A--COLLECTION OF CHILD SUPPORT OBLIGATIONS AT SOURCE OF WAGES

‘Sec. 3411. Child support obligations collected at source of wages.

‘SEC. 3411. CHILD SUPPORT OBLIGATIONS COLLECTED AT SOURCE OF WAGES.

    ‘(a) REQUIREMENT OF WITHHOLDING- Every employer making payment of wages shall deduct and withhold upon such wages a specified child support obligation amount.

    ‘(b) SPECIFIED CHILD SUPPORT OBLIGATION AMOUNT- For purposes of this chapter, the specified child support obligation amount with respect to any employee shall be determined based on information provided by the employee that has been confirmed or corrected by the State enforcing the wage withholding within which the employer is located under procedures described in section 466(a)(22) of the Social Security Act.

    ‘(c) LIABILITY FOR PAYMENT- The employer shall be liable for the payment of the specified child support obligation amount to the payee identified by the employee.

    ‘(d) SPECIAL RULES- For purposes of this chapter (and so much of subtitle F as relates to this chapter), any specified child support obligation amount shall be treated as if it were a tax withheld under chapter 24 and rules similar to the rules of such chapter shall apply.

    ‘(e) DEFINITIONS- For purposes of this section, the terms ‘wages’, ‘employee’ and ‘employer’ shall have the meanings given to such terms by subsections (a), (c), and (d), respectively.’

        (B) CLERICAL AMENDMENT- The table of chapters of subtitle C of the Internal Revenue Code of 1986 is amended by inserting after the item relating to chapter 24 the following new item:

‘CHAPTER 24A. Child support obligations collected at source of wages.’.

      (4) WITHHELD CHILD SUPPORT OBLIGATIONS REPORTED ON W-2 FORMS- Subsection (a) of section 6051 of the Internal Revenue Code of 1986 (relating to receipts for employees) is amended by striking ‘and’ at the end of paragraph (8), by striking the period at the end of paragraph (9) and inserting ‘, and’, and by inserting after paragraph (9) the following new paragraph:

      ‘(10) the total amount of specified child support obligations withheld under section 3411.’.

    (b) STATE IMPLEMENTATION OF SYSTEM- Section 466(a) (42 U.S.C. 666(a)), as amended by section 213, is amended by inserting after paragraph (21) the following new paragraph:

      ‘(22) Procedures under which the State shall--

        ‘(A) impose monetary penalties on--

          ‘(i) any individual who owes child support obligations who fails to report such obligations on a Federal income tax W-4 form at time of employment;

          ‘(ii) any employer who fails to forward such W-4 form to the State child support enforcement agency within 10 calendar days of the date of the employment of such individual; and

          ‘(iii) any employer who fails to withhold the child support obligation and disburse such obligation to the individual owed such obligation within 10 calendar days of the date of the payroll, using electronic funds transfer, if possible, unless otherwise notified by such State agency;

        ‘(B) confirm the information provided under subparagraph (A)(ii) or identify child support obligations that have not been reported by the new employee through the use of the Parent Locator System established under section 453;

        ‘(C) notify the employer in cases where the employee has not correctly reported on the W-4 using a standard wage withholding notice developed by the Federal Office of Child Support Enforcement under section 452(a)(14);

        ‘(D) broadcast over the Parent Locator System to other States information based on W-4 form information that has been sent to the State child support enforcement agency; and

        ‘(E) in the event of a match between the W-4 related information and the abstract of support orders on file in the State registry of child support orders, notify the individual owed a child support obligation or such individual’s designee of such information.

      If an individual owed a child support obligation who is not utilizing the State program under this part desires the wage withholding services described in this paragraph, such individual shall be required to apply for assistance under the State plan.’.

    (c) EFFECTIVE DATE- The provisions and amendments made by this section shall take effect on and after January 1, 1998.

SEC. 403. DIRECT INCOME WITHHOLDING.

    (a) STATE LAW-

      (1) IN GENERAL- Section 466(b) (42 U.S.C. 666(b)) is amended by adding at the end the following new paragraphs:

      ‘(11) Any individual or entity engaged in commerce, as a condition of doing business in the State, shall honor income withholding notices or orders issued by a court or agency of any other State. Service of the notice may be by first-class mail, or directly served on the income source. The individual or entity served shall immediately provide a copy of the notice to the employee. The individual or entity shall honor the withholding notice or order--

        ‘(A) if such notice or order is regular on its face,

        ‘(B) regardless of the location of the employee’s workplace.

      If such notice or order is fully complied with, the individual or entity may not be held liable for wrongful withholding.

      ‘(12) In any case under this part, if a contest to or refusal to comply with an income withholding notice or order occurs, the State seeking withholding shall send an informational copy of the withholding notice or order to the registry established under subsection (a)(15) in the State in which the employee is employed or which is the source of the income.’.

      (2) CONTEST HEARING- Paragraph (4) of section 466(b) (42 U.S.C. 666(b)) is amended by adding at the end the following new subparagraph:

      ‘(C) If the employee requests a hearing to contest the withholding based on a mistake of fact, that hearing may be held in the State of the income source or the State of the employee’s employment, with a determination made within 45 days of the mailing of the withholding notice or order to the income source. The State where any hearing is held shall provide the appropriate services in cases enforced under the State plan to ensure that the interests of the individual owed the child support obligation are represented.’.

      (3) EMPLOYER RECORDS- Paragraph (6) of section 466(b) (42 U.S.C. 666(b)) is amended by adding at the end the following new subparagraph:

      ‘(E) The employer shall maintain records of payroll deductions taken in compliance with this section and make such records available upon request to the State or individual enforcing the wage withholding order.’.

    (b) UNIFORM WITHHOLDING NOTICE- Section 452(a) (42 U.S.C. 652(a)), as amended by section 211, is amended by striking ‘and’ at the end of paragraph (12), by striking the period at the end of paragraph (13) and inserting ‘; and’, and by inserting after paragraph (13) the following new paragraph:

      ‘(14) develop a uniform withholding notice to be used in all income withholding cases, such notice to list the number of children covered by such notice and to be generic to allow for the service of the same notice on subsequent or concurrent sources of income without the necessity of obtaining from the decisionmaker a new, income-source-specific notice.’.

SEC. 404. PRIORITY OF WAGE WITHHOLDING.

    Section 466(b) (42 U.S.C. 666(a)), as amended by section 403, is amended by inserting after paragraph (14) the following new paragraph:

      ‘(13) Procedures under which, absent a request by the custodial parent, the presumptive priority of withholding under a child support or income withholding order is--

        ‘(A) payments on current support obligations,

        ‘(B) payments of premiums for health insurance for dependent children, and

        ‘(C) payments on past due child support obligations and unreimbursed health-care expenses.

      In the case of multiple withholding orders affecting the same employee, payments shall be made to each child on a pro rata basis.’.

SEC. 405. DEFINITION OF INCOME SUBJECT TO WITHHOLDING INCLUDES WORKERS’ COMPENSATION.

    Section 462 (42 U.S.C. 662(f)) is amended--

      (1) by striking ‘For purposes of section 459’ and inserting ‘For purposes of section 459 and, in the case of subsection (f), this part’,

      (2) by striking the period at the end of paragraph (2) of subsection (f) and inserting ‘, or’, and

      (3) by adding at the end of subsection (f) the following new paragraph:

      ‘(3) workers’ compensation benefits.’.

SEC. 406. CONSUMER CREDIT PROTECTION ACT AMENDMENTS.

    (a) PREEMPTION OF STATE LAWS- Section 307 of the Consumer Credit Protection Act (15 U.S.C. 1677) is amended--

      (1) by striking ‘This’ and inserting ‘(a) IN GENERAL- Subject to subsection (b), this’;

      (2) by striking ‘or’ at the end of paragraph (1);

      (3) by striking the period at the end of paragraph (2) and inserting ‘, or’; and

      (4) by adding at the end the following:

      ‘(3) providing a cause of action, either by the State or a private individual, to enforce a Federal or State law related to garnishment for the purpose of securing child support.

    ‘(b) EXCEPTION- Subsection (a)(1) does not apply to the laws of any State that prohibit or restrict garnishments for the purpose of securing support for any person.’.

    (b) OTHER FORMS OF INCOME- Title III of the Consumer Credit Protection Act (15 U.S.C. 1671 et seq.) is amended by adding at the end the following new section:

‘SEC. 308. OTHER FORMS OF INCOME.

    ‘This title does not apply to forms of income that are not earnings within the definition contained in section 302(a).’.

    (c) PRIORITY OF DEBTS- Title III of the Consumer Credit Protection Act (15 U.S.C. 1671 et seq.), as amended by subsection (b), is further amended by adding at the end the following new section:

‘SEC. 309. PRIORITY OF DEBTS.

    ‘If an individual’s disposable earnings are not sufficient to pay--

      ‘(1) a garnishment intended to satisfy a Federal debt; and

      ‘(2) a garnishment intended to satisfy a debt related to the support of any child,

    the Federal debt shall be satisfied through garnishment only after the debt related to child support has first been satisfied.’.

    (d) ADDITIONAL INDEBTEDNESS IN ANTI-DISCHARGE SECTION- Section 304 of the Consumer Credit Protection Act (16 U.S.C. 1674) is amended by adding at the end the following:

    ‘(c) The prohibition contained in subsection (a) shall apply to any employee whose earnings are subject to garnishment for more than one indebtedness, if the additional indebtedness arises from an order for the support of a child.’.

SEC. 407. ELECTION OF REMEDIES PROHIBITION.

    Section 466(a) (42 U.S.C. 666(a)), as amended by section 402, is amended by inserting after paragraph (22) the following new paragraph:

      ‘(23) Procedures under which the doctrine of election of remedies may not be invoked in child support cases.’.

SEC. 408. OCCUPATIONAL, PROFESSIONAL AND BUSINESS LICENSES

    (a) STATE HOLD BASED ON WARRANT OR SUPPORT DELINQUENCY- Section 466(a) (42 U.S.C. 666(a)), as amended by section 407, is amended by inserting after paragraph (23) the following new paragraph:

      ‘(24) Procedures under which the State occupational licensing and regulating departments and agencies may not issue or renew occupational, professional, or business licenses of--

        ‘(A) noncustodial parents who are the subject of outstanding failure to appear warrants, capiases, and bench warrants related to a child support proceeding that appear on the State’s crime information system, until removed from the system; and

        ‘(B) individuals who are delinquent in their child support obligation, until the pro se obligee, the obligee’s attorney, or a State prosecutor responsible for child support enforcement consents to, or a court that is responsible for the order’s enforcement orders, the release of the hold on the license, or an expedited inquiry and review is completed while such individual is granted a 60-day temporary license.’.

    (b) FEDERAL HOLD BASED ON SUPPORT DELINQUENCY- No Federal agency may issue or renew occupational, professional, or business licenses of individuals who are delinquent in their child support obligation, until the pro se obligee, the obligee’s attorney or a State prosecutor responsible for child support enforcement consents to, or a court that is responsible for the order’s enforcement orders, the release of the hold on the license, or an expedited inquiry and review is completed while such individual is granted a 60-day temporary license.

    (c) WAIVER OF FEDERAL IMMUNITY- The Federal Government shall waive its sovereign immunity claims for this limited purpose and cooperate fully with local and State officials regarding license issuances or renewals.

SEC. 409. DRIVER’S LICENSES.

    Section 466(a) (42 U.S.C. 666(a)), as amended by section 408, is amended by inserting after paragraph (24) the following new paragraph:

      ‘(25) Procedures under which the State motor vehicle department may not issue or renew a driver’s license (other than a temporary license of not more than 60-days duration) of any noncustodial parent who is the subject of an outstanding failure to appear warrant, capias, or bench warrant related to a child support proceeding that appears on the State’s crime information system, until removed from the system.’.

SEC. 410. ATTACHMENT OF BANK ACCOUNTS.

    Section 466(a) (42 U.S.C. 666(a)), as amended by section 409, is amended by inserting after paragraph (25) the following new paragraph:

      ‘(26) Procedures under which the State shall authorize post-judgment seizure of the bank accounts of delinquent child support obligors without the need to obtain a separate court order for the attachment. The funds shall be frozen pending notice to and an expedited opportunity to be heard for the account holder or holders. If the account holder or holders do not successfully challenge the freeze, the part of the account subject to the freeze up to the amount of the child support debt shall be turned over to the individual or State seeking the execution.’.

SEC. 411. LOTTERIES, SETTLEMENTS, PAYOUTS, AWARDS, AND FORFEITURES.

    Paragraph (4) of section 466(a) (42 U.S.C. 666(a)) is amended by inserting before the period the following: ‘, including the following:

        ‘(A) A lottery player’s winnings from a State lottery or a gambler’s winnings in a State-sanctioned or tribal-sanctioned gambling house or casino held by the distributor.

        ‘(B) Insurance settlements or policy payouts held by the insurance carrier or the risk-holder.

        ‘(C) State or Federal court awards, judgments, or settlements held by either the attorney for the payor or the pro se payor.

        ‘(D) Property seized and forfeited to the State when an individual has been convicted of a crime involving forfeiture of property.’.

SEC. 412. FRAUDULENT TRANSFER PURSUIT.

    Section 466(a) (42 U.S.C. 666(a)), as amended by section 410, is amended by inserting after paragraph (26) the following new paragraph:

      ‘(27) Procedures that allow the State to void fraudulent conveyances of property that are made in an attempt to avoid child support obligations.’.

SEC. 413. FULL IRS COLLECTION.

    (a) SENSE OF THE CONGRESS- It is the sense of the Congress that the Commissioner of the Internal Revenue Services should instruct the field offices and agents of the Internal Revenue Service to give a high priority to requests for the use of full collection in delinquent child support cases, and to set uniform standards for full collection to ensure its expeditious and effective implementation.

    (b) SIMPLIFIED PROCEDURE- The Secretary of the Treasury, in consultation with the Secretary of Health and Human Services, shall by regulation simplify the full collection process and reduce the amount of child support arrearage needed before an individual may apply for full collection, and shall report to the Congress by January 1, 1997, on the actions taken and the effect of such actions.

SEC. 414. BONDS.

    Paragraph (6) of section 466(a) (42 U.S.C. 666(a)) is amended by inserting ‘(A)’ after ‘(6)’ and by adding at the end the following new subparagraph:

      ‘(B) In cases not involving absent parents, procedures which allow the posting of a cash bond, security deposit, or personal undertaking with the State child enforcement agency if child support payments are not timely made, with the refund of funds (other than the costs of posting) if the individual who owes a child support obligation makes full payments for a prescribed period of time.’.

SEC. 415. TAX OFFSET FOR NONAFDC POST-MINOR CHILD.

    Section 464(c) (42 U.S.C. 664(c)) is amended--

      (1) by striking ‘(1) Except as provided in paragraph (2), as’ and inserting ‘As’, and

      (2) by striking paragraphs (2) and (3).

SEC. 416. ATTACHMENT OF PUBLIC AND PRIVATE RETIREMENT FUNDS.

    Section 466(a) (42 U.S.C. 666(a)), as amended by section 412, is amended by inserting after paragraph (27) the following new paragraph:

      ‘(28) Procedures under which--

        ‘(A) an individual owed a child support obligation may attach lump sum funds invested by the individual who owes such obligation or the employer of such individual in public and private retirement plans, including any funds that are prematurely reachable by such individual without loss of employment even if the distribution would cause a penalty or tax to such individual for early withdrawal;

        ‘(B) all early withdrawal penalties or taxes remain the responsibility of the individual who owes such obligation; and

        ‘(C) the attachment is made without the requirement of a separate court order, with notice and an expedited hearing provided if requested.’.

SEC. 417. CRIMINAL NONSUPPORT.

    Section 466(a) (42 U.S.C. 666(a)), as amended by section 416 is amended by inserting after paragraph (28) the following new paragraph:

      ‘(29) Procedures under which--

        ‘(A) criminal nonsupport penalties may be imposed; and

        ‘(B) the use immunity may be granted to compel testimony in civil child support proceedings where the defendant claims a Fifth Amendment privilege against self-incrimination, and once granted, bars Federal or other State prosecution for criminal nonsupport based on the testimony given in the civil proceeding in which use immunity was granted.’.

SEC. 418. STATUTES OF LIMITATION.

    (a) IN GENERAL- Section 466(a) (42 U.S.C. 666(a)), as amended by section 417, is amended by inserting after paragraph (29) the following new paragraph:

      ‘(30) Procedures which permit the enforcement of any child support order until at least the child’s 30th birthday.’.

    (b) EFFECTIVE DATE- The amendment made by this section shall apply to orders entered before, on, and after the date of the enactment of this Act.

SEC. 419. INTEREST.

    Section 466(a) (42 U.S.C. 666(a)), as amended by section 418, is amended by inserting after paragraph (30 the following new paragraph:

      ‘(31) Procedures under which the State child support enforcement agency is required to assess and collect interest on all child support judgments, at the rate determined for interest on money judgments, and in addition to any late payment fee imposed by the State under section 454(21).’.

SEC. 420. HEALTH-CARE ENFORCEMENT.

    Section 466(a) (42 U.S.C. 666(a)), as amended by section 419, is amended by inserting after paragraph (31) the following new paragraph:

      ‘(32) Procedures under which--

        ‘(A) a rebuttable presumption is established that the individual owed a child support obligation shall have the right to choose the appropriate health care insurance for the children of the parties;

        ‘(B) in making the appropriate order for health care insurance, the court shall consider the availability, coverage, and cost of any proposed insurance plan;

        ‘(C) the insurance premium and noncovered health care expenses are apportioned between the parents pursuant to a formula included in the State’s child support guideline;

        ‘(D) any insurance premium or sum-certain health care expense for which the individual who owes such obligation is responsible shall be included in the child support order;

        ‘(E) the individual owed such obligation under the child support order may act in the place of the insured, including the right to make direct application for insurance, and to make claims and sign claim forms to the same extent as the insured could;

        ‘(F) if the individual who owes such obligation is securing the insurance, such individual shall provide, within 30 days of the order, written proof to the individual owed such obligation and the State child support enforcement agency that insurance has been obtained or an application made for insurance, and the date the insurance coverage is to take effect;

        ‘(G) each welfare benefit plan operating under the laws of the State is required to include in such plan that--

          ‘(i) the employer or union shall release to the individual owed such obligation or the State child enforcement agency, upon request, information on the dependent coverage including the name of the insurer,

          ‘(ii) the employer or union or insurer shall provide all necessary reimbursement forms to such individual, and

          ‘(iii) the employer or union shall provide claim forms and enrollment cards to such individual and honor the signature of such individual on the claim form;

        ‘(H) courts shall quantify ‘reasonable cost’ in the order providing for medical support; and

        ‘(I) employers located in the State are required to provide notice, using an address provided by the State child support enforcement agency, to the custodial parent for children of any termination or change in benefit of an insurance plan under which children in the parent’s care are covered.’.

SEC. 421. BANKRUPTCY.

    (a) DEFINITION- Section 101 of title 11, United States Code, is amended by inserting after paragraph (12) the following new paragraph:

      ‘(12a) ‘debt for child support’ means a debt to a child for maintenance for or support of the child within the meaning of section 523(a)(5).’.

    (b) EXCEPTION FROM AUTOMATIC STAY- Section 362(b) of title 11, United States Code, is amended--

      (1) by inserting ‘(A)’ after ‘(2)’;

      (2) by adding ‘or’ after the semicolon; and

      (3) by adding at the end the following new paragraph:

      ‘(B) under subsection (a), of the commencement or continuation of a civil action or administrative proceeding against the debtor--

        ‘(i) to establish parentage;

        ‘(ii) to establish, review, adjust, or modify a judgment or order creating a debt for child support; or

        ‘(iii) to enforce or collect on a judgment or order issued in such an action or proceeding;’.

    (c) TREATMENT OF DEBT FOR CHILD SUPPORT IN PROCEEDINGS UNDER CHAPTERS 11, 12, AND 13-

      (1) CHAPTER 11- Section 1123(a) of title 11, United States Code, is amended--

        (A) by striking ‘and’ at the end of paragraph (6);

        (B) by striking the period at the end of paragraph (7) and inserting ‘; and’; and

        (C) by adding at the end the following new paragraph:

      ‘(8) provide for the full payment when due of debts for child support, unless the parent in custody or guardian of the child agrees otherwise.’.

      (2) CHAPTER 12- Section 1222(a) of title 11, United States Code, is amended--

        (A) by striking ‘and’ at the end of paragraph (2);

        (B) by striking the period at the end of paragraph (3) and inserting ‘; and’; and

        (C) by adding at the end the following new paragraph:

      ‘(4) provide for the full payment when due of debts for child support, unless the parent in custody or guardian of the child agrees otherwise.’.

      (3) CHAPTER 13- Section 1322(a) of title 11, United States Code, is amended--

        (A) by striking ‘and’ at the end of paragraph (2);

        (B) by striking the period at the end of paragraph (3) and inserting ‘; and’; and

        (C) by adding at the end the following new paragraph:

      ‘(4) provide for the full payment when due of debts for child support, unless the parent in custody or guardian of the child agrees otherwise.’.

    (d) ASSERTION OF CLAIM FOR CHILD SUPPORT-

      (1) IN GENERAL- Subchapter I of chapter 5 of title 11, United States Code, is amended by adding at the end the following new section:

‘Sec. 511. Assertion of claim for child support

    ‘(a) IN GENERAL- A claim for payment of a debt for child support may be asserted by the filing of a claim form that describes the debt.

    ‘(b) FEE- No fee shall be charged for the filing of a claim described in subsection (a).

    ‘(c) REQUIREMENTS FOR APPEARANCE- A claim described in subsection (a) may be made in any court by a person appearing--

      ‘(1) in proper person; or

      ‘(2) through an attorney admitted to practice in any district court, without the attorney’s being required to meet any admission requirements other than those applicable in the district in which the attorney is admitted to practice.’.

      (2) BANKRUPTCY RULES- Pursuant to section 2705 of title 28, United States Code, the Bankruptcy Rules shall be amended as necessary to implement section 511 of title 11, United States Code, as added by paragraph (1); until the Bankruptcy Rules are so amended, any provision of the Bankruptcy Rules or the rules of any court that is inconsistent with that section is superseded by that section.

    (e) CLARIFICATION OF THE NONDISCHARGEABILITY OF STATE PUBLIC DEBTS AND ASSIGNED CHILD SUPPORT BASED ON THE PROVISION OF EXPENDITURES UNDER PARTS A AND E OF TITLE IV OF THE SOCIAL SECURITY ACT- Section 523 of title 11, United States Code, is amended by adding at the end the following new subsection:

    ‘(f) For the purposes of subsection (a)(5), a debt to a child of the debtor for maintenance for or support of the child includes State public debts and assigned child support based on the provision of expenditures under parts A and E of title IV of the Social Security Act (43 U.S.C. 401 et seq. and 470 et seq.).’.

SEC. 422. FEDERAL GOVERNMENT COOPERATION IN ENFORCEMENT OF SUPPORT OBLIGATIONS OF MEMBERS OF THE ARMED FORCES AND OTHER PERSONS ENTITLED TO PAYMENTS BY THE FEDERAL GOVERNMENT.

    (a) AVAILABILITY OF CURRENT LOCATOR INFORMATION- The Secretary of Defense shall prescribe regulations providing for each worldwide personnel locator service of the Armed Forces and each installation personnel locator service of the Armed Forces--

      (1) to include the residential address of each member of the Armed Forces listed in such service;

      (2) in the case of a change of duty station or residential address of a member so listed, to be updated with regard to the residential address of the member within 30 days after the change of duty station or residential address; and

      (3) to make the information regarding the member’s residential address available, on request, to any authorized person (as defined in section 453(c) of the Social Security Act (42 U.S.C. 653(c)) for the purposes of part D of title IV of such Act.

    (b) FACILITATING THE GRANTING OF LEAVE FOR ATTENDANCE AT HEARINGS-

      (1) REGULATIONS REQUIRED- The Secretary of each military department shall prescribe regulations to facilitate the granting of leave to a member of the Armed Forces under the jurisdiction of that Secretary when necessary for the member to attend a hearing of a Court that is conducted in connection with a civil action--

        (A) to determine whether the member is a natural parent of a child; or

        (B) to determine an obligation of the member to provide child support.

      (2) WAIVER AUTHORITY- The regulations may authorize a waiver of the applicability of the regulations to a member of the Armed Forces when--

        (A) the member is serving in an area of combat operations; or

        (B) such a waiver is otherwise necessary in the national security interest of the United States.

      (3) DEFINITIONS- In this section:

        (A) The term ‘Court’ has the meaning given such term in section 1408(a) of title 10, United States Code.

        (B) The term ‘child support’ has the meaning given such term in section 462 of the Social Security Act (42 U.S.C. 662).

    (c) PAYMENT OF MILITARY RETIRED PAY IN COMPLIANCE WITH COURT ORDERS-

      (1) DATE OF CERTIFICATION OF COURT ORDER- Section 1408 of title 10, United States Code, is amended--

        (A) by redesignating subsection (h) as subsection (i); and

        (B) by inserting after subsection (g) the following new subsection (h):

    ‘(h) CERTIFICATION DATE- It is not necessary that the date of a certification of the authenticity or completeness of a copy of a court order for child support received by the Secretary concerned for the purposes of this section be recent in relation to the date of receipt.’.

      (2) PAYMENTS CONSISTENT WITH ASSIGNMENTS OF RIGHTS TO STATES-

        (A) AUTHORITY- Subsection (d)(1) of such section is amended by inserting after the first sentence the following: ‘In the case of a spouse or former spouse who, pursuant to section 402(a)(26) of the Social Security Act (42 U.S.C. 602(26)), assigns to a State the rights of the spouse or former spouse to receive support, the Secretary concerned may make the child support payments referred to in the preceding sentence to that State in amounts consistent with the assignment of rights.’.

        (B) RULE OF CONSTRUCTION- Subsection (c)(2) of such section is amended--

          (i) by inserting after the first sentence the following: ‘The second sentence of subsection (d)(1) shall not be construed to create any such right, title, or interest.’;

          (ii) by inserting ‘(A)’ after ‘(2)’; and

          (iii) by designating the last sentence as subparagraph (B).

      (3) ARREARAGES OWED BY MEMBERS OF THE UNIFORMED SERVICES- Part D of title IV (42 U.S.C. 651 et seq.) is amended by inserting after section 465 the following new section:

‘SEC. 465A. PAYMENT OF CHILD SUPPORT ARREARAGES OWED BY MEMBERS OF THE UNIFORMED SERVICES.

    ‘Any authority, requirement, or procedure provided in this part or section 1408 of title 10, United States Code, that applies to the payment of child support owed by a member of the uniformed services (as defined in section 101 of title 37, United States Code) shall apply to the payment of child support arrearages as well as to amounts of child support that are currently due.’.

SEC. 423. UIFSA ENDORSEMENT.

    Section 466 (42 U.S.C. 666) is amended by adding at the end the following new subsection:

    ‘(f) In order to satisfy section 454(20)(A), each State must have in effect laws which adopt without material change by January 1, 1997, the officially approved version of the Uniform Interstate Family Support Act adopted by the National Conference of Commissioners on Uniform State Laws and approved by the American Bar Association House of Delegates on February 9, 1993.’.

TITLE V--COLLECTION AND DISTRIBUTION

SEC. 501. PRIORITY OF DISTRIBUTION OF COLLECTIONS.

    (a) STATE DISTRIBUTION PLAN- Section 457 (42 U.S.C. 657) is amended by adding at the end the following new subsection:

    ‘(e) The amounts collected as support by a State pursuant to a plan approved under this part during any fiscal year beginning after September 30, 1996 (except amounts collected through a tax refund offset), shall (subject to subsection (d) be distributed as follows:

      ‘(1) To a current month’s child support obligation.

      ‘(2) After the fulfillment of the current month’s obligation, to debts owed the family (other than obligations under this title); if any right to child support were assigned to the State, then all arrearages that accrued after the child no longer received assistance under this title are to be distributed to the family; States may include any preassignment family-debt arrearages at this priority level.

      ‘(3) To reimburse the State making the collection for any assistance payments made to the family (with appropriate reimbursement of the Federal Government to the extent of its participation in the financing).

      ‘(4) To reimburse other States for payments described in paragraph (3) (in the order in which such payments occurred). The collecting State shall continue to enforce the order until all such payments have been reimbursed and to transmit the collections and identifying information to the other State.’.

    (b) STUDY AND PILOT PROJECTS- The Comptroller General of the United States (hereafter in this subsection referred to as the ‘Comptroller General’) shall analyze the existing child support distribution system under section 457 of the Social Security Act and authorize pilot projects for the distribution of arrearages in the following order:

      (1) Application of all support collected first to a current month’s child support obligation.

      (2) Application of funds collected in excess of the amount of the current month’s obligation to debts owed the family (other than obligations under this title).

      (3) Using funds collected in excess of the debts to the family and in excess of the amount of the current support obligation, to reimburse the State making the collection for any assistance payments made to the family (with appropriate reimbursement of the Federal Government to the extent of its participation in the financing).

      (4) Using funds collected in excess of the current month’s support obligation after the debt to the family and the collecting State have been satisfied, to reimburse other States for payments described in paragraph (3) (in the order in which such payments occurred). The collecting State shall continue to enforce the order until all such payments have been reimbursed and to transmit the collections and identifying information to the other State.

      (5) Subject to paragraph (6), the priority of distribution of interest shall reflect the distribution priority for the child support installment or the title IV of the Social Security Act grant on which the interest accrued.

      (6) A State’s right to retain interest on assigned support is limited to the grant amount paid by that State. All additional interest is to be distributed to the individual owed such support.

    The pilot projects shall be awarded to States that allow for the indefinite tolling of the statute of limitations on debts under title IV of the Social Security Act and are not governed by Federal case law that allows for the dischargeability of such debts in bankruptcy. In analyzing each pilot project a cost-benefit analysis, a welfare-medicaid-food stamp cost-avoidance analysis, and an analysis of the family impact including a present value dollar valuation of the distribution scheme shall be reported to the Comptroller General. The Comptroller General shall report the results of the study and pilot projects to the Congress.

    (c) REVISION OF FEDERAL INCOME TAX REFUND OFFSET- Section 6402 of the Internal Revenue Code of 1986 (relating to authority to make credits or refunds) is amended--

      (1) by striking ‘after any other reductions allowed by law (but before’ in subsection (c) and inserting ‘before any other reductions allowed by law (and before’, and

      (2) by striking ‘with respect to past-due support collected pursuant to an assignment under section 402(a)(26) of the Social Security Act’ in subsection (d).

    (d) FIFTY-DOLLAR DISREGARDED FOR ALL MEANS-TESTED PROGRAM- Section 457(b)(1) (42 U.S.C. 657(b)(1)) is amended by inserting ‘under this part or under any other Federal program which determines eligibility for assistance or amount of such assistance based on the income or assets of the applicant for or recipient of such assistance’ after ‘during such month’.

    (e) FILL-THE-GAP POLICIES ENCOURAGED- The Secretary of Health and Human Services shall, upon request by any State, grant a waiver under section 1115(a)(1) of the Social Security Act with respect to the date limitations under section 402(a)(28) of such Act.

SEC. 502. RELATIONSHIP OF AFDC TO CSE--LIMITING REIMBURSEMENT CLAIMS TO AWARD AMOUNT.

    Section 466(a) (42 U.S.C. 666(a)), as amended by section 421, is amended by inserting after paragraph (32) the following new paragraph:

      ‘(33) Procedures under which any claims for the child’s portion of the assistance under this title such State may have against a noncustodial parent shall be limited to the amount specified as child support under a court or administrative order.’.

SEC. 503. FEES FOR NONAFDC CLIENTS.

    Clause (ii) of section 454(6)(E) (42 U.S.C. 654(6)(E)) shall be amended to read as follows:

        ‘(ii) at the option of the State, from any individual other than the custodial parent;’.

SEC. 504. COLLECTION AND DISBURSEMENT POINTS FOR CHILD SUPPORT.

    Section 454 (42 U.S.C. 654), as amended by section 301, is amended by striking ‘and’ at the end of paragraph (25), by striking the period at the end of paragraph (26) and inserting ‘; and’, and by inserting after paragraph (26) the following new paragraph:

      ‘(27) provide either one central, statewide collection, accounting, and disbursement point for cases under this part or several local or regional collection and disbursement points throughout the State for all cases.’.

TITLE VI--FEDERAL ROLE

SEC. 601. PLACEMENT AND ROLE OF THE FEDERAL CHILD SUPPORT AGENCY.

    Section 452(a) (42 U.S.C. 652(a)), as amended by section 403 is amended--

      (1) by striking ‘under the direction of a designee of the Secretary’ and inserting ‘to be known as the Office of Child Support Enforcement, under the direction of an assistant secretary appointed by the President with the advice and consent of the Senate’;

      (2) by inserting ‘using a methodology that reflects cost-avoidance as well as cost-recovery’ after ‘the States and the Federal Government’ in paragraph (10)(A);

      (3) by inserting ‘, including a separate legal counsel for the Office’ after ‘Enforcement’ in paragraph (10)(B);

      (4) by redesignating subparagraphs (H) and (I) of paragraph (10) as subparagraphs (I) and (J) of such paragraph, respectively, and by inserting after subparagraph (G) of such paragraph the following new subparagraph:

        ‘(H) the budgetary allocation of the $50 pass through equally between part A and this part;’; and

      (5) by striking ‘and’ at the end of paragraph (13), by striking the period at the end of paragraph (14) and inserting ‘; and’, and by inserting after paragraph (14) the following new paragraph:

      ‘(15) initiate and actively pursue with other Federal agencies, coordinated efforts on Federal legislation.’.

SEC. 602. TRAINING.

    (a) FEDERAL TRAINING ASSISTANCE- Section 452(a)(7) (42 U.S.C. 652(a)(7)) is amended by inserting ‘and training’ after ‘technical assistance’.

    (b) STATE TRAINING PROGRAM- Section 454 (42 U.S.C. 654), as amended by section 504, is amended by striking ‘and’ at the end of paragraph (26), by striking the period at the end of paragraph (27) and inserting ‘; and’, and by inserting after paragraph (27) the following new paragraph:

      ‘(28) provide that the State will develop and implement a training program which provides training no less than annually to all personnel providing functions under the State plan.’.

    (c) REPORT- Section 452(a)(10) (42 U.S.C. 652(a)(10)), as amended by section 601, is amended by redesignating subparagraphs (I) and (J) as subparagraphs (J) and (K), respectively, and by inserting after subparagraph (H) the following new subparagraph:

        ‘(I) the training activities at the Federal and State levels, the training audit, and the amount of funds expended on training;’.

SEC. 603. STAFFING.

    Section 452(a) (42 U.S.C. 652(a)), as amended by section 601, is amended by striking ‘and’ at the end of paragraph (14), by striking the period at the end of paragraph (15) and inserting ‘; and’, and by inserting after paragraph (15) the following new paragraph:

      ‘(16) conduct staffing studies for each State child support enforcement program, including each agency and court involved in the child support process, and report such results to the Congress and State officials.’.

SEC. 604. FUNDING AND INCENTIVES FOR CHILD SUPPORT AGENCIES.

    (a) STUDY- The Comptroller General of the United States shall study the incentive formula under section 458 of the Social Security Act (42 U.S.C. 458) and investigate the feasibility, costs, and benefits of the following:

      (1) Encouraging States to centralize functions at the State level.

      (2) Abolishing minimum incentives to States as well as the requirement that incentive funds be passed to local child support enforcement agencies.

      (3) Exploring incentive formula that are based on increases in FFP for States that exceed performance criteria instead of the present percentage of collections formula.

      (4) Promoting quality control.

      (5) Providing financial incentives for the enforcement of health-care expenses.

      (6) Providing for a Federal incentive formula that would include tying incentive amounts to performance criteria that include total collections as a denominator (not solely the amount of AFDC collections) and which are not solely based on cost-benefit criteria alone.

    (b) REPORT- The Comptroller General of the United States shall report the results of the study described in subsection (a) to the Congress not later than December 31, 1996.

SEC. 605. CHILD SUPPORT DEFINITION.

    (a) IN GENERAL- Section 452 (42 U.S.C. 652) is amended by adding at the end the following new subsection:

    ‘(j) For purposes of this part, the term ‘child support’ includes periodic and lump sum payments for current and past due economic support, payments of premiums for health insurance for children, payments for or provision of child care, and payments for educational expenses.’.

    (b) CONFORMING AMENDMENT- Section 462(b) (42 U.S.C. 662(b)) is amended--

      (1) by inserting ‘and lump sum’ after ‘periodic’, and

      (2) by inserting ‘child care,’ after ‘clothing,’.

SEC. 606. AUDITS.

    (a) STUDY- The Secretary of Health and Human Services shall contract for a study of the audit process of the Office of Child Support Enforcement to develop criteria and methodology for auditing State child support enforcement agencies established under part D of title IV of the Social Security Act. The study shall be designed to result in improvements to the auditing process that include--

      (1) reduction in the resources required to perform the audit,

      (2) simplified procedures for States to follow in obtaining samples,

      (3) the feasibility of sampling cases for needed action as opposed to the present audit methods that require sampling plans for each audit criteria, and

      (4) a more timely audit period of review.

    The study shall also be designed to determine a penalty process that focuses on improving the delivery of child support services and not harming families, specifically a penalty that is not tied to the reduction of funds available to the States to provide payments under the Aid to Families with Dependent Children program. Such a plan should include the escrowing of funds withheld as penalties for use by States in a federally approved program improvement.

    (b) REPORT- The Secretary of Health and Human Services shall report the results of the study described in subsection (a) to the Congress not later than 90 days after completion of the study.

    (c) CONTINUATION OF OCSE’S AUDIT REVIEW- From the date of the report described in subsection (b), the audit review of the Office of Child Support Enforcement shall be limited to cases open on such date and cases closed within 180 days before such date, unless there is a specific need for a longitudinal review of State agency case handling that includes cases that have been closed for more than 180 days. The criteria for longitudinal reviews shall be established by regulation by the Secretary of Health and Human Services. The Office of Child Support Enforcement shall continue to impose timeframes for implementation and audit standards for each mandated function under part D of title IV of the Social Security Act.

SEC. 607. CHILD SUPPORT ASSURANCE DEMONSTRATION PROJECTS.

    (a) IN GENERAL- In order to encourage States to provide a guaranteed minimum level of child support for every child not receiving such support, the Secretary of Health and Human Services (hereafter in this section referred to as the ‘Secretary’) shall make grants to not less than 6 States to conduct demonstration projects for the purpose of establishing or improving a system of assured minimum child support payments in accordance with this section.

    (b) CONTENTS OF APPLICATION- An application for grants under this section shall be submitted by the Governor of a State and shall--

      (1) contain a description of the proposed child support assurance project to be established, implemented, or enhanced using amounts provided under this section, including the specific activities to be undertaken and the agencies that will be involved;

      (2) specify whether the project will be carried out throughout the State or in limited areas of the State;

      (3) estimate the number of children who will be eligible for assured minimum child support payments under the project, and the amounts to which such children will be entitled on average as individuals and in the aggregate;

      (4) describe the child support guidelines and review procedures which are in use in the State and any expected modifications;

      (5) contain a commitment by the State to carry out the project during a period of not less than 3 fiscal years beginning with fiscal year 1996;

      (6) specify the extent to which the State has implemented (or will implement during the duration of the project) major enforcement initiatives, such as central registries, centralized administration, automated computer systems, administrative law systems, universal wage withholding, updating of orders, access to State data bases, legal procedures for paternity establishment (including in-hospital paternity establishment), and enforcement tools;

      (7) specify the current relative quality of the State enforcement system as compared to other States, including the ratio of collections to accounts receivables for the immediate past year, the ratio of collections to accounts receivables for all past years, the ratio of collections to administrative expenditures, and the paternity establishment rate;

      (8) provide assurances that the State performance meets or exceeds the national median paternity establishment rate (as defined in section 452(g)(2) of the Social Security Act) and provide assurances the State will continue to improve its performance in the number of cases in which--

        (A) paternity is established,

        (B) child support orders are collected, and

        (C) child support collections are made; and

      (9) contain such other information as the Secretary may require by regulation.

    (c) USE OF FUNDS- A State shall use amounts provided under a grant awarded under this section to carry out a child support assurance project designed to provide a minimum monthly child support benefit for each child in the State to the extent that such minimum child support is not paid in a month by the noncustodial parent.

    (d) REQUIREMENTS- (1) A child support assurance project funded under this section shall provide that--

      (A) the custodial parent is eligible for the assured child support benefit if--

        (i) such parent establishes paternity and has a child support order established;

        (ii) more than 1 year has passed since such parent applied, in writing to the State for the establishment of paternity and a child support order and has complied with the requirements of paragraph (3), but neither paternity nor a child support order has been established due to circumstances beyond the control of the parent; or

        (iii) with respect to the custodial parent, the danger of physical abuse of such parent is shown;

      (B) the assured child support benefit shall be paid promptly to the custodial parent at least once a month and shall be offset and reduced to the extent that the custodial parent receives child support in a month from the noncustodial parent; and

      (C) in the event that the family as a whole becomes ineligible for Aid to Families With Dependent Children under part A of title IV of the Social Security Act due to consideration of assured child support benefits, the continuing eligibility of the caretaker for Aid to Families With Dependent Children under such title shall be calculated without consideration of the assured child support benefit.

    (2) For purposes of this section, the term ‘child’ means an individual who is of such an age, disability, or educational status as to be eligible for child support as provided by the law of the State in which such individual resides.

    (3) The requirements of this paragraph are as follows:

      (A) Provide the name of the alleged father.

      (B) Provide sufficient information to verify the identity of the person named, including the present address of the person, the past or present place of employment of the person, the past or present school attended by the person, the name and address of the person’s parents, friends or relatives that can provide location information for the person, the telephone number of the person, the social security number of the person, the date of birth of the person, or other information that, if reasonable efforts were made by the State, could lead to identify a particular person to be served with process.

      (C) Continue to provide all other relevant information that the applicant has that may be requested by the State.

      (D) Appear at required interviews, conference hearings or legal proceedings, if notified in advance and an illness or emergency does not prevent attendance.

      (E) Submit (along with the child) to genetic tests.

    (4) For purposes of this section, the term ‘circumstances beyond the control of the parent’ includes--

      (A) failure of the State to make reasonable and timely efforts to locate the noncustodial parent,

      (B) instances in which the noncustodial parent cannot be located despite the State’s reasonable efforts because the noncustodial parent has disappeared or moved out of the country,

      (C) instances in which the noncustodial parent has been located but the State has failed to serve such parent with the legal papers,

      (D) cases in which the State or courts have failed to complete the legal process to establish paternity or set an award, and

      (E) other cases in which the State’s or court’s action or inaction has resulted in the failure to establish paternity or set an award.

    (e) CONSIDERATION AND PRIORITY OF APPLICATIONS- The Secretary shall consider all applications received from States desiring to conduct demonstration projects under this section and shall approve the 6 applications which appear likely to contribute significantly to the achievement of the purpose of this section. In selecting States to conduct demonstration projects under this section, the Secretary shall consider geographic diversity, variety in types of support guideline models used, and variation in population of the applicants.

    (f) EVALUATION AND REPORTS- (1) Each State that conducts a demonstration project under this section shall, as a part of such demonstration project, conduct an interim and a final evaluation of the effectiveness of the demonstration project and shall submit an interim and final report to the Secretary concerning the results of the evaluation and any improvements in child support enforcement.

    (2) The evaluation and report submitted by a State to the Secretary shall analyze and describe (in such a manner as prescribed by the Secretary)--

      (A) the impact of the child support assurance project on the economic and noneconomic well-being of children and adults in both custodial and noncustodial households;

      (B) the work force participation rates of both custodial and noncustodial parents as a result of participation in the child support assurance project;

      (C) the impact of the child support assurance project on Aid to Families With Dependent Children participation rates, grants, and funding levels;

      (D) the impact of the child support assurance project on paternity establishment;

      (E) a comparison of enforcement effectiveness in intrastate and interstate cases;

      (F) administrative policies and laws of the Federal Government and the State or a political subdivision of the State, identified by the State as impediments to the implementation of child support assurance;

      (G) the measures that the State has taken to implement the project and the lessons learned therefrom by the State; and

      (H) any other relevant items as the Secretary may require.

    (g) DURATION- A demonstration project conducted under this section shall be commenced not later than fiscal year 1996 and shall be conducted for not less than 3 and not more than 5 consecutive fiscal years, except that the Secretary may terminate a project before the end of such period if the Secretary determines that the State conducting the project is not in substantial compliance with the terms of the application approved by the Secretary under this section.

    (h) COST SAVINGS RECOVERY- The Secretary shall develop a methodology to identify any State cost savings realized in connection with the implementation of a child support assurance project conducted under this section. Any such savings realized as a result of the implementation of a child support assurance project shall be utilized for child support enforcement improvements or expansions and improvements in the Aid to Families With Dependent Children Program conducted under part A of title IV of the Social Security Act within the participating State, and Federal expenditures for such project within the State shall be reduced in proportion to any such savings.

    (i) EVALUATION AND REPORT TO CONGRESS- Three and 5 years after commencement of the first State child support assurance project, the Secretary shall conduct an evaluation of each such project and submit a report to the Committee on Finance and the Committee on Labor and Human Resources of the Senate, and the Committee on Ways and Means and the Committee on Economic and Educational Opportunities of the House of Representatives concerning the effectiveness of the child support assurance projects funded under this section. Such report shall analyze the reports received by the Secretary under subsection (f) from each participating State and shall compare the effects of different types of child support guidelines.

    (j) RESTRICTIONS ON MATCHING AND USE OF FUNDS- (1) A State conducting a demonstration project under this section shall be required--

      (A) except as provided in paragraph (2), to provide not less than 15 percent of the total amounts expended in each calendar year of the project to pay the costs associated with the project funded under this section; and

      (B) to maintain its level of expenditures for child support collection, enforcement, and payment at the same level, or at a higher level, than such expenditures were prior to such State’s participation in a demonstration project provided by this section.

    (2) A State participating in a demonstration project under this section may provide no less than 10 percent of the total amounts expended to pay the costs associated with the project funded under this section in years after the first year such project is conducted in a State if the State meets the improvements specified in subsection (b)(6).

    (k) TREATMENT OF CHILD SUPPORT BENEFIT- Any assured child support benefit received by an individual under this section shall be considered child support for purposes of the Internal Revenue Code of 1986.

    (l) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated and are appropriated such sums as may be necessary in each of the fiscal years 1996, 1997, 1998, 1999, and 2000, to carry out the purposes of this section.

TITLE VII--STATE ROLE

SEC. 701. PROHIBITION OF RESIDENCY REQUIREMENT FOR IV-D SERVICES.

    Section 454 (42 U.S.C. 654), as amended by section 602, is amended by striking ‘and’ at the end of paragraph (27), by striking the period at the end of paragraph (28) and inserting ‘; and’, and by inserting after paragraph (28) the following new paragraph:

      ‘(29) provide that an applicant may not be denied services under the plan solely because of the applicant’s nonresidency in that State.’.

SEC. 702. ADVOCATING FOR CHILDREN’S ECONOMIC SECURITY.

    Section 454 (42 U.S.C. 654), as amended by section 701, is amended by striking ‘and’ at the end of paragraph (28), by striking the period at the end of paragraph (29) and inserting ‘; and’, and by inserting after paragraph (29) the following new paragraph:

      ‘(30) provide that the State agency administering the plan shall advocate to promote the greatest economic security possible for children, within the ability of the individual who owes a child support obligation to pay such obligation.’.

SEC. 703. DUTIES OF IV-D AGENCIES.

    Section 454 (42 U.S.C. 654), as amended by section 702, is amended by striking ‘and’ at the end of paragraph (29), by striking the period at the end of paragraph (30) and inserting ‘; and’, and by inserting after paragraph (30) the following new paragraph:

      ‘(31) provide that the State agency administering the plan shall provide to all custodial parents--

        ‘(A) a written description of available services and a statement articulating the priority of distribution and the degree of confidentiality of information;

        ‘(B) a statement that before the agency consents to a dismissal with prejudice or a reduction of arrearages, the agency shall provide notice to the last known address at least 30 days before dismissal;

        ‘(C) written quarterly reports on case status;

        ‘(D) a statement that services under this part are mandatory if an individual is determined eligible under part A; and

        ‘(E) a statement that while eligibility under part A is being determined, an applicant is eligible for services under this part and all application fees are deferred pending such determination.’.

SEC. 704. BROADER ACCESS TO SERVICES.

    It is the sense of the Congress that State and local child support enforcement agencies should provide--

      (1) offices in easily accessible locations near public transportation,

      (2) office hours that allow parents to meet with attorneys and caseworkers without taking time off from work, and

      (3) office environments conducive to discussion of legal and personal matters in privacy (e.g., individual interview rooms and child care facilities).

SEC. 705. PROCESS FOR CHANGE OF PAYEE IN IV-D CASES.

    Section 466(a) (42 U.S.C. 666(a)), as amended by section 502, is amended by inserting after paragraph (33) the following new paragraph:

      ‘(34) Procedures under which a change in payee may not require a court hearing or order to take effect and may be done administratively, as long as a statement by an agency official is included in the court or administrative file documenting the change.’.

TITLE VIII--EFFECTIVE DATE

SEC. 801. EFFECTIVE DATE.

    Except as otherwise provided in this Act, the amendments made by this Act shall take effect on and after January 1, 1997.