Text: H.R.3857 — 104th Congress (1995-1996)All Bill Information (Except Text)

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Introduced in House (07/18/1996)

 
[Congressional Bills 104th Congress]
[From the U.S. Government Printing Office]
[H.R. 3857 Introduced in House (IH)]







104th CONGRESS
  2d Session
                                H. R. 3857

  To ensure economic equity for American women and their families by 
      promoting fairness in the workplace, creating new economic 
  opportunities for women workers and women business owners, helping 
   workers better meet the competing demands of work and family, and 
enhancing economic self-sufficiency through public and private pension 
           reform and improved child support and enforcement.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 18, 1996

 Mrs. Morella (for herself, Mrs. Lowey, Ms. Roybal-Allard, Ms. Waters, 
 Ms. Brown of Florida, Ms. Furse, Ms. Velazquez, Mrs. Meek of Florida, 
 Mrs. Collins of Illinois, Mrs. Maloney, Mrs. Schroeder, Ms. Lofgren, 
 Ms. Woolsey, Mrs. Eddie Bernice Johnson of Texas, Mrs. Kennelly, Ms. 
  Pelosi, Mrs. Clayton, and Ms. Jackson-Lee of Texas) introduced the 
following bill; which was referred to the Committee on Ways and Means, 
and in addition to the Committees on Agriculture, Banking and Financial 
Services, Commerce, Economic and Educational Opportunities, Government 
  Reform and Oversight, House Oversight, International Relations, the 
    Judiciary, National Security, Resources, and Transportation and 
   Infrastructure, 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


 
  To ensure economic equity for American women and their families by 
      promoting fairness in the workplace, creating new economic 
  opportunities for women workers and women business owners, helping 
   workers better meet the competing demands of work and family, and 
enhancing economic self-sufficiency through public and private pension 
           reform and improved child support and enforcement.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Economic Equity Act of 1996''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
                      TITLE I--WORKPLACE FAIRNESS

         Subtitle A--Part-Time and Temporary Workers Protection

        Chapter 1--Protection of Part-Time and Temporary Workers

Sec. 11101. Eligibility for unemployment compensation of certain 
                            individuals seeking part-time employment.
Sec. 11102. Annual Bureau of Labor Statistics survey relating to 
                            temporary workers.
Sec. 11103. Protection of part-time and temporary workers.
  Chapter 2--Misclassification of Employees as Independent Contractors

Sec. 11201. Internal Revenue Service procedures.
Sec. 11202. Federal contracts.
Sec. 11203. Defense contracts.
                 Subtitle B--Federal Employee Fairness

Sec. 12001. Amendments relating to administrative determination of 
                            Federal employee discrimination claims.
Sec. 12002. Amendments to the Age Discrimination in Employment Act and 
                            the Rehabilitation Act of 1973.
Sec. 12003. Amendments to title 5 of the United States Code.
Sec. 12004. Technical amendments.
Sec. 12005. Issuance of procedural guidelines and notice rules.
Sec. 12006. Issuance of rules regarding classified information.
Sec. 12007. Rules of construction.
Sec. 12008. Sense of the Congress.
Sec. 12009. Effective dates; application of amendments.
                Subtitle C--Legislative Pay Equity Study

Sec. 13001. Declaration of policy.
Sec. 13002. Establishment of commission.
Sec. 13003. Functions of commission.
Sec. 13004. Staff of commission.
Sec. 13005. Compensation of members.
Sec. 13006. Powers of commission.
Sec. 13007. Reports and termination of commission.
Sec. 13008. Administrative provisions.
                Subtitle D--Sexual Harassment Prevention

Sec. 14001. Civil action.
Sec. 14002. Additional funding for the Equal Employment Opportunity 
                            Commission.
               Subtitle E--Sexual Harassment Information

Sec. 15001. Findings and purposes.
Sec. 15002. Employer requirements.
Sec. 15003. Duties of the commission.
Sec. 15004. Enforcement.
Sec. 15005. Definitions.
Sec. 15006. Effective dates.
                Subtitle F--Sexual Harassment Tax Equity

Sec. 16001. Deduction for legal expenses of individuals bringing sexual 
                            harassment suits against their employers.
                       Subtitle G--Equal Remedies

Sec. 17001. Equalization of remedies.
            Subtitle H--Federal Temporary Workers Protection

Sec. 18001. Eligibility for health benefits.
Sec. 18002. Effective date.
                Subtitle I--Contingent Work Force Equity

Sec. 19001. Equal pay.
Sec. 19002. Occupational safety and health.
Sec. 19003. Family and medical leave.
Sec. 19004. Contingent workforce survey.
Sec. 19005. Collective bargaining rights.
Sec. 19006. Protection of part-time and temporary workers.
Sec. 19007. Unemployment compensation.
                     TITLE II--ECONOMIC OPPORTUNITY

           Subtitle A--Microenterprise Opportunity Expansion

Sec. 21001. Public assistance provisions.
Sec. 21002. Unemployment compensation for individuals starting 
                            microenterprises.
Sec. 21003. Treatment of microenterprise loans and grants by insured 
                            depository institutions as community 
                            reinvestment.
Sec. 21004. Treatment of microenterprise loans of savings associations 
                            as qualified thrift investments.
Sec. 21005. Use of CDBG assistance for administrative costs of entities 
                            assisting microenterprises.
Sec. 21006. Establishment of microenterprise division in each Federal 
                            banking agency.
Sec. 21007. Study.
 Subtitle B--Commission on the Advancement of Women in the Science and 
                        Engineering Work Forces

Sec. 22001. Findings.
Sec. 22002. Establishment.
Sec. 22003. Duty of commission.
Sec. 22004. Membership.
Sec. 22005. Director and staff of commission; experts and consultants.
Sec. 22006. Powers of commission.
Sec. 22007. Reports.
Sec. 22008. Construction; use of information obtained.
Sec. 22009. Termination.
Sec. 22010. Authorization of appropriations.
               Subtitle C--Equal Surety Bond Opportunity

Sec. 23001. Equal surety bond opportunity requirements.
Sec. 23002. Civil liability.
Sec. 23003. Administrative enforcement.
Sec. 23004. Effective date.
                 Subtitle D--Self-Sufficiency Standard

Sec. 24001. Findings and purpose.
Sec. 24002. Definition of economic self-sufficiency.
Sec. 24003. Establishment of economic self-sufficiency standards for 
                            adult training programs.
Sec. 24004. Prohibition of incentive grants to service delivery areas 
                            that do not have in effect an approved 
                            local economic self-sufficiency standards 
                            table.
Sec. 24005. Inclusion of local economic self-sufficiency standards 
                            table and related reports in job training 
                            plan.
Sec. 24006. Inclusion of local economic self-sufficiency standards 
                            tables and related reports in Governor's 
                            coordination and special services plan.
Sec. 24007. Demonstration programs to implement local economic self-
                            sufficiency standards tables.
Sec. 24008. Report and recommendations.
                   Subtitle E--Community Reinvestment

Sec. 25001. Reporting of actual performance data.
          Subtitle F--Telecommunications Economic Opportunity

Sec. 26001. Findings.
Sec. 26002. Purpose.
Sec. 26003. Annual plan submission.
Sec. 26004. Sanctions and remedies.
Sec. 26005. Definitions.
         Subtitle G--HHS Women Scientist Employment Opportunity

Sec. 27001. Women's scientific employment.
              Subtitle H--Women in Enterprise Development

Sec. 28001. Women in enterprise development.
                       TITLE III--WORK AND FAMILY

          Subtitle A--Child Care Consolidation and Investment

Sec. 31001. Findings.
Sec. 31002. Purpose.
Sec. 31003. Amendments to Child Care and Development Block Grant Act of 
                            1990.
Sec. 31004. Program repeals.
Sec. 31005. Effective date.
           Subtitle B--Child Care Public-Private Partnership

Sec. 32001. Establishment of business incentive grant program.
Sec. 32002. Eligibility to receive grants.
Sec. 32003. Application.
Sec. 32004. Selection of grantees.
Sec. 32005. Definitions.
Sec. 32006. Authorization of appropriations.
          Subtitle C--Dependent Care Tax Credit Refundability

Sec. 33001. Dependent care tax credit.
               Subtitle D--IRA Deductions for Homemakers

Sec. 34001. Homemakers eligible for full IRA deduction.
      Subtitle E--Federal Parental Leave for Education Activities

Sec. 35001. Coverage of employees.
Sec. 35002. Parental involvement leave.
Sec. 35003. Parental involvement leave for civil servants.
       Subtitle F--Tax Incentives for Family-Friendly Workplaces

Sec. 36001. Small business family and medical leave credit.
Sec. 36002. Credit for wages paid to employee who is allowed to shift 
                            hours of employment or to work at home in 
                            order to reduce child care needs.
                   Subtitle G--Parental Equity Leave

Sec. 37001. Leave for adopted and foster children.
                  TITLE IV--ECONOMIC SELF-SUFFICIENCY

                Subtitle A--Child Support Responsibility

Sec. 41001. Reference to Social Security Act.
Chapter 1--Eligibility and Other Matters Concerning Title IV-D Program 
                                Clients

Sec. 41101. State obligation to provide paternity establishment and 
                            child support enforcement services.
Sec. 41102. Distribution of payments.
Sec. 41103. Due process rights.
Sec. 41104. Privacy safeguards.
             Chapter 2--Program Administration and Funding

Sec. 41201. Federal matching payments.
Sec. 41202. Performance-based incentives and penalties.
Sec. 41203. Federal and State reviews and audits.
Sec. 41204. Required reporting procedures.
Sec. 41205. Automated data processing requirements.
Sec. 41206. Director of CSE program; staffing study.
Sec. 41207. Funding for secretarial assistance to State programs.
Sec. 41208. Reports and data collection by the Secretary.
                  Chapter 3--Locate and Case Tracking

Sec. 41301. Central State and case registry.
Sec. 41302. Centralized collection and disbursement of support 
                            payments.
Sec. 41303. Amendments concerning income withholding.
Sec. 41304. Locator information from interstate networks.
Sec. 41305. Expanded Federal Parent Locator Service.
Sec. 41306. Use of social security numbers.
          Chapter 4--Streamlining and Uniformity of Procedures

Sec. 41401. Adoption of uniform State laws.
Sec. 41402. Improvements to full faith and credit for child support 
                            orders.
Sec. 41403. State laws providing expedited procedures.
                   Chapter 5--Paternity Establishment

Sec. 41501. State laws concerning paternity establishment.
Sec. 41502. Outreach for voluntary paternity establishment.
      Chapter 6--Establishment and Modification of Support Orders

Sec. 41601. National Child Support Guidelines Commission.
Sec. 41602. Simplified process for review and adjustment of child 
                            support orders.
                Chapter 7--Enforcement Of Support Orders

Sec. 41701. Federal income tax refund offset.
Sec. 41702. Internal Revenue Service collection of arrears.
Sec. 41703. Authority to collect support from Federal employees.
Sec. 41704. Enforcement of child support obligations of members of the 
                            armed forces.
Sec. 41705. Motor vehicle liens.
Sec. 41706. Voiding of fraudulent transfers.
Sec. 41707. State law authorizing suspension of licenses.
Sec. 41708. Reporting arrearages to credit bureaus.
Sec. 41709. Extended statute of limitation for collection of 
                            arrearages.
Sec. 41710. Charges for arrearages.
Sec. 41711. Denial of passports for nonpayment of child support.
Sec. 41712. International child support enforcement.
                       Chapter 8--Medical Support

Sec. 41801. Technical correction to ERISA definition of medical child 
                            support order.
                     Chapter 9--Effect of Enactment

Sec. 41901. Effective dates.
Sec. 41902. Severability.
                  Subtitle B--Interstate Child Support

Sec. 42001. Reference.
Sec. 42002. Findings, declarations, and purposes.
                  Chapter 1--Locate and Case Tracking

Sec. 42101. Expansion of functions of Federal Parent Locator Service.
Sec. 42102. Expansion of data bases accessed by parent locator systems.
Sec. 42103. Expansion of access to national network for location of 
                            parents.
Sec. 42104. Private access to locate and enforcement services.
Sec. 42105. National reporting of new hires and child support 
                            information.
Sec. 42106. Access to law enforcement records systems.
Sec. 42107. Broadcasting of warrants on State networks.
Sec. 42108. Case monitoring.
Sec. 42109. Access to financial records.
                        Chapter 2--Establishment

Sec. 42201. Service of process on Federal employees and members of the 
                            Armed Services in connection with 
                            proceedings relating to child support and 
                            parentage obligations.
Sec. 42202. Presumed address of obligor and obligee.
Sec. 42203. Notice to custodial parents.
Sec. 42204. Uniform State rules in parentage and child support cases.
Sec. 42205. Fair Credit Reporting Act amendment.
Sec. 42206. National Child Support Guidelines Commission.
Sec. 42207. Guideline principles.
Sec. 42208. Duration of support.
Sec. 42209. Evidence.
Sec. 42210. Telephonic appearance in interstate cases.
Sec. 42211. Uniform terms in orders.
Sec. 42212. Social security numbers on marriage licenses, divorce 
                            decrees, parentage decrees, and birth 
                            certificates.
Sec. 42213. Administrative subpoena power.
Sec. 42214. Legal assistance programs.
Sec. 42215. Indian child support.
Sec. 42216. Support orders outreach and demonstrations.
                          Chapter 3--Parentage

Sec. 42301. Parentage.
                         Chapter 4--Enforcement

Sec. 42401. Direct wage withholding.
Sec. 42402. Priorities in application of withheld wages.
Sec. 42403. Additional benefits subject to garnishment.
Sec. 42404. Consumer Credit Protection Act amendments.
Sec. 42405. Prohibition against use of election of remedies doctrine to 
                            prevent collection of child support.
Sec. 42406. Hold on occupational, professional, and business licenses.
Sec. 42407. Driver's licenses and vehicle registrations denied to 
                            persons failing to appear in child support 
                            cases.
Sec. 42408. Liens on certificates of vehicle title.
Sec. 42409. Attachment of bank accounts.
Sec. 42410. Seizure of lottery winnings, settlements, payouts, awards, 
                            and bequests, and sale of forfeited 
                            property, to pay child support arrearages.
Sec. 42411. Fraudulent transfer pursuit.
Sec. 42412. Full IRS collection.
Sec. 42413. Tax refund offset program expanded to cover non-AFDC post-
                            minor children.
Sec. 42414. Attachment of public and private retirement funds.
Sec. 42415. Statutes of limitation.
Sec. 42416. Interest.
Sec. 42417. Armed forces cooperation in enforcement of support 
                            obligations of members and former members 
                            of the armed forces.
Sec. 42418. States required to enact the Uniform Interstate Family 
                            Support Act.
Sec. 42419. IRS reconciliation process.
Sec. 42420. Denial of passports to noncustodial parents subject to 
                            State arrest warrants in cases of 
                            nonpayment of child support.
Sec. 42421. Denial of Federal benefits, loans, guarantees, and 
                            employment to certain persons with large 
                            child support arrearages.
Sec. 42422. States required to order courts to allow assignment of life 
                            insurance benefits to satisfy child support 
                            arrearages.
Sec. 42423. Interests in jointly held property subject to assignment to 
                            satisfy child support arrearages.
Sec. 42424. International child support enforcement.
                 Chapter 5--Collection and Distribution

Sec. 42501. Priorities in distribution of collected child support.
Sec. 42502. State claims against noncustodial parent limited to 
                            assistance provided to the child.
Sec. 42503. Fees for non-AFDC clients.
Sec. 42504. Collection and disbursement points for child support.
Sec. 42505. Sense of the Congress that States should encourage parents 
                            to use the State child support agency to 
                            collect and process child support payments.
                        Chapter 6--Federal Role

Sec. 42601. Placement and role of the office of child support 
                            enforcement.
Sec. 42602. Training.
Sec. 42603. Staffing.
Sec. 42604. Demonstration projects to test alternative approaches to 
                            incentive funding for State child support 
                            programs.
Sec. 42605. Child support definition.
Sec. 42606. Audits.
Sec. 42607. Child support assurance demonstration projects.
Sec. 42608. Children's Trust Fund.
Sec. 42609. Study of reasons for nonpayment of child support; report.
Sec. 42610. Study of effectiveness of administrative processes; report.
Sec. 42611. Publication of best child support practices.
Sec. 42612. Establishment of Permanent Child Support Advisory 
                            Committee.
                         Chapter 7--State Role

Sec. 42701. Advocation of children's economic security.
Sec. 42702. Duties of State child support agencies.
Sec. 42703. Sense of the Congress regarding quality of and 
                            accessibility to child support services.
Sec. 42704. Administrative process for change of payee in IV-D cases.
Sec. 42705. Sense of the Congress supporting use of administrative 
                            procedures in child support cases.
Sec. 42706. Sense of the Congress supporting establishment of State 
                            child support councils.
          Chapter 8--Jobs for Unemployed Noncustodial Parents

Sec. 42801. Parents fair share demonstration projects.
                       Chapter 9--Effective Date

Sec. 42901. Effective date.
           Subtitle C--Child Support Enforcement Improvements

Sec. 43001. Nonliability for depository institutions providing 
                            financial records to State child support 
                            enforcement agencies in child support 
                            cases.
Sec. 43002. Access to and use of consumer reports by State child 
                            support enforcement agencies in child 
                            support cases.
Sec. 43003. Health care support.
Sec. 43004. Annual reports on State compliance with time limits within 
                            which State must provide certain child 
                            support assistance.
Sec. 43005. Wages withheld by employers to pay child support 
                            obligations required to be paid to State 
                            within 10 days; late payment penalty 
                            imposed on employers.
Sec. 43006. National parent locator network.
                  Subtitle D--Single Parent Protection

Sec. 44001. Treatment of unpaid child support.
                   Subtitle E--Women's Pension Equity

Sec. 45001. Model spousal consent form and qualified domestic relations 
                            order.
Sec. 45002. Extension of tier II railroad retirement benefits to 
                            surviving former spouses pursuant to 
                            divorce agreements.
Sec. 45003. Survivor annuities for widows, widowers, and former spouses 
                            of Federal employees who die before 
                            attaining age for deferred annuity under 
                            Civil Service Retirement System.
Sec. 45004. Court orders relating to Federal retirement benefits for 
                            former spouses of Federal employees.
Sec. 45005. Prevention of circumvention of court order by waiver of 
                            retired pay to enhance civil service 
                            retirement annuity.
                       Subtitle F--Pension Reform

Sec. 46001. Pension integration rules.
Sec. 46002. Application of minimum coverage requirements with respect 
                            to separate lines of business.
Sec. 46003. Elimination of special vesting rule for multiemployer 
                            plans.
Sec. 46004. Division of pension benefits upon divorce.
Sec. 46005. Effective dates.
Sec. 46006. Clarification of continued availability of remedies 
                            relating to matters treated in domestic 
                            relations orders entered before 1985.
Sec. 46007. Entitlement of divorced spouses to railroad retirement 
                            annuities independent of actual entitlement 
                            of employee.
                 Subtitle G--Social Security Caregiver

Sec. 47001. Increase in number of years disregarded.
Sec. 47002. Effective date and related provisions.
Sec. 47003. Repeal of 7-year restriction on eligibility for widow's and 
                            widower's insurance benefits based on 
                            disability.
Sec. 47004. Increase in widow's and widower's insurance benefits by 
                            reason of delayed retirement.
Sec. 47005. Effective date.
Sec. 47006. Exemption from two-year waiting period for divorced 
                            spouse's benefits following the divorce in 
                            cases of prior receipt of spouse's 
                            benefits.
Sec. 47007. Effective date.
Sec. 47008. Full benefits for disabled widows and widowers without 
                            regard to age.
Sec. 47009. Exemption from reductions in benefits.
Sec. 47010. Effective date and redetermination of benefits.
             TITLE V--ECONOMIC IMPACT OF DOMESTIC VIOLENCE

          Subtitle A--Workplace Violence Prevention Tax Credit

Sec. 51001. Congressional findings.
Sec. 51002. Credit for costs to employers of implementing workplace 
                            safety programs to combat violence against 
                            women.
   Subtitle B--Insurance Protection for Victims of Domestic Violence

Sec. 52001. Prohibition of health insurance discrimination with respect 
                            to victims of domestic violence.
             Subtitle C--Fairness to Minority Women Health

Sec. 53001. Exception to AFDC income and resources attribution rule for 
                            certain battered aliens.
Sec. 53002. Amendment to the Food Stamp Act of 1977.
Sec. 53003. Requiring certain recipients of Federal financial 
                            assistance to have personnel available who 
                            speak predominant language used in area.
Sec. 53004. Study regarding domestic violence and Latina women.
           Subtitle D--Battered Women's Employment Protection

Sec. 54001. Findings and purposes.
Sec. 54002. Unemployment compensation.
Sec. 54003. Leave from employment.
Sec. 54004. Effect on other laws and employment benefits.
        Subtitle E--Domestic Violence Legal Services Eligibility

Sec. 55001. Income rule for victims of domestic violence.

                      TITLE I--WORKPLACE FAIRNESS

         Subtitle A--Part-Time and Temporary Workers Protection

        CHAPTER 1--PROTECTION OF PART-TIME AND TEMPORARY WORKERS

SEC. 11101. ELIGIBILITY FOR UNEMPLOYMENT COMPENSATION OF CERTAIN 
              INDIVIDUALS SEEKING PART-TIME EMPLOYMENT.

    (a) General Rule.--Subsection (a) of section 3304 of the Internal 
Revenue Code of 1986 (relating to requirements for approval of State 
unemployment compensation laws) is amended by striking ``and'' at the 
end of paragraph (18), by redesignating paragraph (19) as paragraph 
(20), and by inserting after paragraph (18) the following new 
paragraph:
            ``(19) in applying the State law provisions relating to 
        availability for work, active search for work, or refusal to 
        accept work, the term `suitable work' shall not include any 
        work where the individual would normally perform services for 
        more hours per week than the number of hours per week for which 
        the individual normally performed services in the individual's 
        last job in the base period, and''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on the date of the enactment of this subtitle.

SEC. 11102. ANNUAL BUREAU OF LABOR STATISTICS SURVEY RELATING TO 
              TEMPORARY WORKERS.

    The Secretary of Labor, acting through the Commissioner of the 
Bureau of Labor Statistics, shall establish and carry out an annual 
survey identifying--
            (1) the characteristics of temporary workers in the United 
        States;
            (2) the relationship between such workers and the 
        establishments at which such workers are temporarily employed; 
        and
            (3) where appropriate, the relationship between such 
        workers and their permanent employers.

SEC. 11103. PROTECTION OF PART-TIME AND TEMPORARY WORKERS.

    (a) Treatment of Employees Working at Less Than Full-Time Under 
Participation, Vesting, and Accrual Rules Governing Pension Plans.--
            (1) Participation rules.--
                    (A) In general.--Section 202(a)(3) of the Employee 
                Retirement Income Security Act of 1974 (29 U.S.C. 
                1052(a)(3)) is amended by adding at the end the 
                following new subparagraph:
    ``(E)(i) For purposes of this paragraph, in the case of any 
employee who, as of the beginning of the 12-month period referred to in 
subparagraph (A)--
            ``(I) has customarily completed 500 or more hours of 
        service per year but less than 1,000 hours of service per year, 
        or
            ``(II) is employed in a type of position in which 
        employment customarily constitutes 500 or more hours of service 
        per year but less than 1,000 hours of service per year,
completion of 500 hours of service within such 12-month period shall be 
treated as completion of 1,000 hours of service.
    ``(ii) For purposes of this subparagraph, the extent to which 
employment in any type of position customarily constitutes less than 
1,000 hours of service per year shall be determined with respect to 
each pension plan in accordance with such regulations as the Secretary 
may prescribe providing for consideration of facts and circumstances 
peculiar to the work-force constituting the participants in such 
plan.''.
                    (B) Conforming amendment.--Section 204(b)(1)(E) of 
                such Act (29 U.S.C. 1054(b)(1)(E)) is amended by 
striking ``section 202(a)(3)(A)'' and inserting ``subparagraphs (A) and 
(E) of section 202(a)(3)''.
            (2) Vesting rules.--
                    (A) In general.--Section 203(b)(2) of such Act (29 
                U.S.C. 1053(b)(2)) is amended by adding at the end the 
                following new subparagraph:
    ``(E)(i) For purposes of this paragraph, in the case of any 
employee who, as of the beginning of the period designated by the plan 
pursuant to subparagraph (A)--
            ``(I) has customarily completed 500 or more hours of 
        service per year but less than 1,000 hours of service per year, 
        or
            ``(II) is employed in a type of position in which 
        employment customarily constitutes 500 or more hours of service 
        per year but less than 1,000 hours of service per year,
completion of 500 hours of service within such period shall be treated 
as completion of 1,000 hours of service.
    ``(ii) For purposes of this subparagraph, the extent to which 
employment in any type of position customarily constitutes less than 
1,000 hours of service per year shall be determined with respect to 
each pension plan in accordance with such regulations as the Secretary 
may prescribe providing for consideration of facts and circumstances 
peculiar to the work-force constituting the participants in such 
plan.''.
                    (B) 1-year breaks in service.--Section 203(b)(3) of 
                such Act (29 U.S.C. 1053(b)(3)) is amended by adding at 
                the end the following new subparagraph:
    ``(F)(i) For purposes of this paragraph, in the case of any 
employee who, as of the beginning of the period designated by the plan 
pursuant to subparagraph (A)--
            ``(I) has customarily completed 500 or more hours of 
        service per year but less than 1,000 hours of service per year, 
        or
            ``(II) is employed in a type of position in which 
        employment customarily constitutes 500 or more hours of service 
        per year but less than 1,000 hours of service per year,
completion of 250 hours of service within such period shall be treated 
as completion of 500 hours of service.
    ``(ii) For purposes of this subparagraph, the extent to which 
employment in any type of position customarily constitutes less than 
1,000 hours of service per year shall be determined with respect to 
each pension plan in accordance with such regulations as the Secretary 
may prescribe providing for consideration of facts and circumstances 
peculiar to the work-force constituting the participants in such 
plan.''.
            (3) Accrual rules.--Section 204(b)(4)(C) of such Act (29 
        U.S.C. 1054(b)(4)(C)) is amended--
                    (A) by inserting ``(i)'' after ``(C)''; and
                    (B) by adding at the end the following new clauses:
    ``(ii) For purposes of this subparagraph, in the case of any 
employee who, as of the beginning of the period designated by the plan 
pursuant to clause (i)--
            ``(I) has customarily completed 500 or more hours of 
        service per year but less than 1,000 hours of service per year, 
        or
            ``(II) is employed in a type of position in which 
        employment customarily constitutes 500 or more hours of service 
        per year but less than 1,000 hours of service per year,
completion of 500 hours of service within such period shall be treated 
as completion of 1,000 hours of service.
    ``(iii) For purposes of clause (ii), the extent to which employment 
in any type of position customarily constitutes less than 1,000 hours 
of service per year shall be determined with respect to each pension 
plan in accordance with such regulations as the Secretary may prescribe 
providing for consideration of facts and circumstances peculiar to the 
work-force constituting the participants in such plan.''.
    (b) Treatment of Employees Working at Less Than Full-Time Under 
Group Health Plans.--
            (1) In general.--Part 2 of subtitle B of title I of such 
        Act is amended--
                    (A) by redesignating section 211 (29 U.S.C. 1061) 
                as section 212; and
                    (B) by inserting after section 210 (29 U.S.C. 1060) 
                the following new section:

       ``treatment of part-time workers under group health plans

    ``Sec. 211. (a) In General.--A reduction in the employer-provided 
premium under a group health plan with respect to any employee for any 
period of coverage solely because the employee's customary employment 
is less than full-time may be provided under such plan only if the 
employee is described in subsection (b) and only to the extent 
permitted under subsection (c).
    ``(b) Reductions Applicable to Employees Working Less Than Full-
Time.--
            ``(1) In general.--An employee is described in this 
        subsection if such employee, as of the beginning of the period 
        of coverage referred to in subsection (a)--
                    ``(A) has customarily completed less than 30 hours 
                of service per week, or
                    ``(B) is employed in a type of position in which 
                employment customarily constitutes less than 30 hours 
                of service per week.
            ``(2) Regulations.--For purposes of paragraph (1), whether 
        employment in any type of position customarily constitutes less 
        than 30 hours of service per week shall be determined with 
        respect to each group health plan in accordance with such 
        regulations as the Secretary may prescribe providing for 
        consideration of facts and circumstances peculiar to the work 
        force constituting the participants in such plan.
    ``(c) Amount of Permissible Reduction.--The employer-provided 
premium under a group health plan with respect to any employee for any 
period of coverage, after the reduction permitted under subsection (a), 
shall not be less than a ratable portion of the employer-provided 
premium which would be provided under such plan for such period of 
coverage with respect to an employee who completes 30 hours of service 
per week.
    ``(d) Definitions.--For purposes of this section--
            ``(1) Group health plan.--The term `group health plan' has 
        the meaning provided such term in section 607(1).
            ``(2) Employer-provided premium.--
                    ``(A) In general.--The term `employer-provided 
                premium' under a plan for any period of coverage means 
                the portion of the applicable premium under the plan 
                for such period of coverage which is attributable under 
                the plan to employer contributions.
                    ``(B) Applicable premium.--For purposes of 
                subparagraph (A), in determining the applicable premium 
                of a group health plan, principles similar to the 
                principles applicable under section 604 shall apply.''.
            (2) Conforming amendments.--
                    (A) Section 201(1) of such Act (29 U.S.C. 1051(1)) 
                is amended by inserting ``, except with respect to 
                section 211'' before the semicolon.
                    (B) The table of contents in section 1 of such Act 
                is amended by striking the item relating to section 211 
                and inserting the following new items:

``Sec. 211. Treatment of part-time workers under group health plans.
``Sec. 212. Effective date.''.
    (c) Expansion of Definition of Employee To Include Certain 
Individuals Whose Services Are Leased or Contracted For.--Paragraph (6) 
of section 3 of such Act (29 U.S.C. 1002(6)) is amended--
            (1) by inserting ``(A)'' after ``(6)''; and
            (2) by adding at the end the following new subparagraph:
    ``(B) Such term includes, with respect to any employer, any person 
who is not an employee (within the meaning of subparagraph (A)) of such 
employer and who provides services to such employer, if--
            ``(i) such person has (pursuant to an agreement with such 
        employer or any other person) performed such services for such 
        employer (or for such employer and related persons (within the 
        meaning of section 144(a)(3) of the Internal Revenue Code of 
        1986)) for a period of at least 1 year (6 months in the case of 
        core health benefits) at the rate of at least 500 hours of 
        service per year, and
            ``(ii) such services are of a type historically performed, 
        in the business field of the employer, by employees (within the 
        meaning of subparagraph (A)).''.
    (d) Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply with respect to 
plan years beginning on or after January 1, 1997.
            (2) Special rule for collectively bargained plans.--In the 
        case of a plan maintained pursuant to 1 or more collective 
        bargaining agreements between employee representatives and 1 or 
        more employers ratified on or before the date of the enactment 
        of this subtitle, paragraph (1) shall be applied to benefits 
        pursuant to, and individuals covered by, any such agreement by 
        substituting for ``January 1, 1997'' the date of the 
        commencement of the first plan year beginning on or after the 
        earlier of--
                    (A) the later of--
                            (i) January 1, 1997, or
                            (ii) the date on which the last of such 
                        collective bargaining agreements terminates 
                        (determined without regard to any extension 
                        thereof after the date of the enactment of this 
                        subtitle), or
                    (B) January 1, 1999.
            (3) Plan amendments.--If any amendment made by this section 
        requires an amendment to any plan, such plan amendment shall 
        not be required to be made before the first plan year beginning 
        on or after January 1, 1998, if--
                    (A) during the period after such amendment made by 
                this section takes effect and before such first plan 
                year, the plan is operated in accordance with the 
                requirements of such amendment made by this section, 
                and
                    (B) such plan amendment applies retroactively to 
                the period after such amendment made by this section 
                takes effect and such first plan year.
        A plan shall not be treated as failing to provide definitely 
        determinable benefits or contributions, or to be operated in 
        accordance with the provisions of the plan, merely because it 
        operates in accordance with this paragraph.

  CHAPTER 2--MISCLASSIFICATION OF EMPLOYEES AS INDEPENDENT CONTRACTORS

SEC. 11201. INTERNAL REVENUE SERVICE PROCEDURES.

    (a) Waiver of Employment Tax Liability for Reasonable Good Faith 
Misclassification Based on Common Law Rules.--Section 3509 of the 
Internal Revenue Code of 1986 (relating to determination of employer's 
liability for certain employment taxes) is amended by adding at the end 
the following new subsection:
    ``(e) Waiver of Employment Tax Liability for Reasonable Good Faith 
Misclassification Based on Common Law Rules.--
            ``(1) In general.--For purposes of determining the 
        liability of any taxpayer for employment taxes with respect to 
        any individual for any period, such individual shall be deemed 
        not to have been an employee of the taxpayer for such period 
        if--
                    ``(A) the taxpayer did not treat such individual as 
                an employee for purposes of the employment taxes for 
                such period,
                    ``(B) the taxpayer's treatment of such individual 
                as not being an employee was based on a reasonable good 
                faith misapplication of the common law rules used for 
                determining the employer-employee relationship,
                    ``(C) all Federal tax returns (including 
                information returns) required to be filed by the 
                taxpayer with respect to such individual for such 
                period were filed on a basis consistent with the 
                taxpayer's treatment of such individual as not being an 
                employee,
                    ``(D) the taxpayer (and any predecessor) did not 
                treat any other individual holding a substantially 
                similar position as an employee for purposes of the 
                employment taxes for any period beginning after 
                December 31, 1977, and
                    ``(E) the taxpayer enters into a closing agreement 
                under section 7121 with the Secretary (in the time and 
                manner determined by the Secretary) agreeing to treat 
                such individual, and any other individual holding a 
                substantially similar position, as employees and to 
                file all Federal employment tax returns with respect to 
                such individuals on a basis consistent with the 
                taxpayer's treatment of such individuals as employees.
            ``(2) Definitions and special rules.--
                    ``(A) Employment tax.--For purposes of this 
                subsection, the term `employment tax' means any tax 
                imposed by subtitle C, including any interest, penalty, 
                or additional amount with respect to such tax.
                    ``(B) No refund or credit of overpayment.--No 
                refund or credit of any overpayment of an employment 
                tax resulting from the application of paragraph (1) 
                shall be allowed, notwithstanding that the period for 
                filing a claim for refund or credit of such overpayment 
                is not barred on the effective date of this 
                subsection.''
    (b) Modifications to Safe Harbor for Classifications of Individuals 
as Nonemployees.--
            (1) Requirement of reasonable basis.--Paragraph (1) of 
        section 530(a) of the Revenue Act of 1978 (relating to 
        controversies involving whether individuals are employees for 
        purposes of the employment taxes) is amended by striking 
        ``unless the taxpayer had no reasonable basis'' and inserting 
        the following: ``if the taxpayer had a reasonable basis''.
            (2) Repeal of prior audit as reasonable basis, etc.--
        Paragraph (2) of section 530(a) of the Revenue Act of 1978 is 
        amended--
                    (A) by striking the paragraph caption and inserting 
                the following: ``Reasonable basis for not treating 
                individual as employee.--'',
                    (B) in the matter preceding subparagraph (A)--
                            (i) by striking ``in any case'', and
                            (ii) by inserting ``only'' before ``if the 
                        taxpayer's'',
                    (C) by adding ``or'' at the end of subparagraph 
                (A), and
                    (D) by striking subparagraph (B) and by 
                redesignating subparagraph (C) as subparagraph (B).
    (c) Authority for Regulations and Rulings on Employment Status.--
Section 530 of the Revenue Act of 1978 is amended by striking 
subsection (b) and by redesignating subsections (c) and (d) as 
subsections (b) and (c), respectively.
    (d) Effective Dates.--
            (1) In general.--The amendments made by this section shall 
        take effect beginning on the date which is 120 days after the 
        date of the enactment of this subtitle.
            (2) Modifications to safe harbor.--The amendments made by 
        subsection (b) shall apply to periods ending on or after the 
        date which is 120 days after the date of the enactment of this 
        subtitle.

SEC. 11202. FEDERAL CONTRACTS.

    (a) Classification of Persons as Employees and Independent 
Contractors Under Certain Procurement Contracts.--(1) Title III of the 
Federal Property and Administrative Services Act of 1949 (41 U.S.C. 251 
et seq.) is amended by adding at the end the following new section:

``SEC. 317. CLASSIFICATION OF PERSONS AS EMPLOYEES AND INDEPENDENT 
              CONTRACTORS.

    ``(a) Ineligibility for Government Contracts and Subcontracts.--(1) 
A person (including any subsidiary, successor, or related entity of a 
person) shall not be eligible for a contract during the 2-year period 
beginning on the date of the issuance of any final determination under 
Federal law that the person (including any subsidiary or related entity 
of the person) willfully misclassified an individual for purposes of 
any employment tax.
    ``(2) For purposes of this subsection, a determination is final if 
all rights to appeal the determination, or to request a review, 
rehearing, or redetermination of the matter that is the subject of the 
determination, have been exhausted or have lapsed.
    ``(b) Certification of Adequacy of Bids To Pay Employment Taxes.--A 
person who submits a bid or proposal for a contract shall certify that 
the amount of the bid or proposal is adequate to pay all employment 
taxes with respect to all work to be performed under the contract by 
employees of the person.
    ``(c) Notification of Independent Contractors.--Each contract shall 
include a requirement that the contractor provide, to each person who 
performs work under the contract and who is treated by the contractor 
as an independent contractor for purposes of employment taxes, a 
notification regarding--
            ``(1) all obligations of the independent contractor under 
        Federal and State law to withhold and pay employment taxes with 
        respect to work performed under the contract by the independent 
        contractor (including work performed by employees of the 
        independent contractor); and
            ``(2) all statutory rights and protections that are 
        available under Federal and State law to employees of the 
        contractor and are not available to the independent contractor 
        (including employees of the independent contractor), including 
        rights and protections under the Fair Labor Standards Act of 
        1938, the Occupational Safety and Health Act of 1978, and title 
        VII of the Civil Rights Act of 1964.
    ``(d) Right of Action.--A person who submits a bid or proposal for 
a contract and who suffers damages as a result of the award of the 
contract to a person who knowingly and willfully submits a 
certification under subsection (b) with respect to the contract that is 
false, may bring an action for damages against the person awarded the 
contract in any district court of the United States in which the 
defendant is located.
    ``(e) Definitions.--As used in this section:
            ``(1) The term `employment tax' means any tax imposed by 
        subtitle C of the Internal Revenue Code of 1986.
            ``(2) The term `contract' means a contract that is entered 
        into by an executive agency under this title, and all 
        subcontracts under such a contract.
            ``(3) The term `misclassify' means to treat as an 
        independent contractor an individual who is an employee.''.
    (2) The table of contents in section 1 of the Federal Property and 
Administrative Services Act of 1949 is amended by inserting after the 
item relating to the last section in title III the following new item:

``Sec. 317. Classification of persons as employees and independent 
                            contractors.''.
    (b) Applicability.--Section 317 of the Federal Property and 
Administrative Services Act of 1949, as added by subsection (a), shall 
apply to--
            (1) contracts entered into under title III of such Act 
        after the expiration of the 180-day period beginning on the 
        date of the enactment of this subtitle;
            (2) subcontracts under contracts covered by paragraph (1); 
        and
            (3) options exercised under any such contract after the 
        expiration of the 180-day period beginning on the date of the 
        enactment of this subtitle.

SEC. 11203. DEFENSE CONTRACTS.

    (a) Classification of Persons as Employees and Independent 
Contractors Under Defense Contracts.--(1) Chapter 141 of title 10, 
United States Code, is amended by inserting after section 2393 the 
following new section:
``Sec. 2393a. Classification of persons as employees and independent 
              contractors
    ``(a) Ineligibility for Defense Contracts and Subcontracts.--(1) A 
person (including any subsidiary, successor, or related entity of a 
person) shall not be eligible for a contract during the 2-year period 
beginning on the date of the issuance of any final determination under 
Federal law that the person (including any subsidiary or related entity 
of the person) willfully misclassified an individual for purposes of 
any employment tax.
    ``(2) For purposes of this subsection, a determination is final if 
all rights to appeal the determination, or to request a review, 
rehearing, or redetermination of the matter that is the subject of the 
determination, have been exhausted or have lapsed.
    ``(b) Certification of Adequacy of Bids To Pay Employment Taxes.--A 
person who submits a bid or proposal for a contract shall certify that 
the amount of the bid or proposal is adequate to pay all employment 
taxes with respect to all work to be performed under the contract by 
employees of the person.
    ``(c) Notification of Independent Contractors.--Each contract shall 
include a requirement that the contractor shall provide, to each person 
who performs work under the contract and who is treated by the 
contractor as an independent contractor for purposes of employment 
taxes, a notification regarding--
            ``(1) all obligations of the independent contractor under 
        Federal and State law to withhold and pay employment taxes with 
        respect to work performed under the contract by the independent 
        contractor (including work performed by employees of the 
        independent contractor); and
            ``(2) all statutory rights and protections that are 
        available under Federal and State law to employees of the 
        contractor and are not available to the independent contractor 
        (including employees of the independent contractor), including 
        rights and protections under the Fair Labor Standards Act of 
        1938, the Occupational Safety and Health Act of 1978, and title 
        VII of the Civil Rights Act of 1964.
    ``(d) Right of Action.--A person who submits a bid or proposal for 
a contract and who suffers damages as a result of the award of the 
contract to a person who knowingly and willfully submits a 
certification under subsection (b) with respect to the contract that is 
false, may bring an action for damages against the person awarded the 
contract in any district court of the United States in which the 
defendant is located.
    ``(e) Applicability.--This section applies to contracts entered 
into under chapter 137 of this title.
    ``(f) Definitions.--In this section:
            ``(1) The term `employment tax' means any tax imposed by 
        subtitle C of the Internal Revenue Code of 1986.
            ``(2) The term `contract' includes subcontracts.
            ``(3) The term `misclassify' means to treat as an 
        independent contractor an individual who is an employee.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2393 the 
following new item:

``2393a. Classification of persons as employees and independent 
                            contractors.''.
    (b) Applicability.--Section 2393a of title 10, United States Code, 
as added by subsection (a), shall apply to--
            (1) contracts entered into under chapter 137 of title 10, 
        United States Code, after the expiration of the 180-day period 
        beginning on the date of the enactment of this subtitle;
            (2) subcontracts under contracts covered by paragraph (1); 
        and
            (3) options exercised under any such contract after the 
        expiration of the 180-day period beginning on the date of the 
        enactment of this subtitle.

                 Subtitle B--Federal Employee Fairness

SEC. 12001. AMENDMENTS RELATING TO ADMINISTRATIVE DETERMINATION OF 
              FEDERAL EMPLOYEE DISCRIMINATION CLAIMS.

    (a) Definitions.--Section 701 of the Civil Rights Act of 1964 (42 
U.S.C. 2000e) is amended--
            (1) in paragraph (f) by striking ``The term'' and inserting 
        ``Except when it appears as part of the term `Federal 
        employee', the term'', and
            (2) by adding at the end the following:
    ``(o) The term `administrative judge' includes an administrative 
law judge appointed under section 3105 of title 5 of the United States 
Code.
    ``(p) The term `Commission' means the Equal Employment Opportunity 
Commission.
    ``(q) The term `entity of the Federal Government' means an entity 
to which section 717(a) applies, except that such term does not include 
the Library of Congress.
    ``(r) The term `Federal employee' means an individual employed by, 
or who applies for employment with, an entity of the Federal 
Government.
    ``(s) The term `Federal employment' means employment by an entity 
of the Federal Government.
    ``(t) The terms `government', `government agency', and `political 
subdivision' do not include an entity of the Federal Government.''.
    (b) EEOC Determination of Federal Employment Discrimination 
Claims.--Section 717 of the Civil Rights Act of 1964 (42 U.S.C. 2000e-
16) is amended--
            (1) in subsection (b)--
                    (A) by inserting ``(1)'' after ``(b)'',
                    (B) in the second sentence--
                            (i) by redesignating paragraphs (1), (2), 
                        and (3), as subparagraphs (A), (B), and (C), 
                        respectively,
                            (ii) in the subparagraph (B), as so 
                        redesignated, by striking ``and'' at the end,
                            (iii) in subparagraph (C), as so 
                        redesignated, by striking the period at the end 
                        and inserting ``; and'', and
                            (iv) by inserting after subparagraph (C), 
                        as so redesignated, the following:
            ``(D) require each entity of the Federal Government--
                    ``(i) to make counseling available to Federal 
                employees who believe such entity has discriminated 
                against them in violation of this section, for the 
                purpose of trying to resolve the matters with respect 
                to which such discrimination is alleged (Such entity 
                shall assist such employee to identify the respondent 
                required by subsection (c)(1) to be named in a 
                complaint alleging such violation, shall inform such 
                Federal employee individually of the procedures and 
                deadlines that apply under this section to a claim 
                alleging such discrimination, and shall make such 
                counseling available throughout the administrative 
                process.);
                    ``(ii) to establish a voluntary alternative dispute 
                resolution process to resolve complaints, except that a 
Federal employee's decision to forgo such process shall not affect the 
rights of such employee under this title;
                    ``(iii) not to discourage Federal employees from 
                filing complaints on any matter relating to 
                discrimination in violation of this section;
                    ``(iv) not to require Federal employees to 
                participate in conciliation made available under 
                subsection (c)(1)(A)(ii) unless such entity has an 
                alternative dispute resolution process approved by the 
                Commission as described in such subsection; and
                    ``(v) not to require Federal employees to 
                participate in a dispute resolution process made 
                available under clause (ii).
    ``(2)(A) A Federal employee who believes that an entity of the 
Federal Government has discriminated against such employee in violation 
of this section, to whom subsection (c)(1)(A)(ii) applies, who has 
requested such entity to provide the conciliation described in 
subsection (c)(1)(A)(ii), and who is the subject of, or about to be the 
subject of, a personnel action to be taken against such employee as a 
result of expressing that belief or requesting such conciliation may 
file with the Commission a request for a stay of such personnel action, 
together with an affidavit made by such employee in support of such 
request.
    ``(B) Immediately after receiving such request so supported, the 
Commission shall appoint an administrative judge to review such 
request. Subsection (f)(3) shall apply with respect to such review and 
to the issuance of a stay requested under subparagraph (A).''.
                    (C) in the third sentence by striking ``The'' and 
                inserting the following:
    ``(3) The'',
                    (D) in the fourth sentence by redesignating 
                paragraphs (1) and (2) as subparagraphs (A) and (B), 
                respectively,
                    (E) in the last sentence by striking ``With'' and 
                inserting the following:
    ``(4) With'', and
                    (F) by adding at the end the following:
    ``(4)(A) Subject to subparagraph (B), an unlawful employment 
practice of the kind described in section 704(a) is established under 
this section if an employee or applicant for employment demonstrates 
that his opposing any practice made an unlawful employment practice by 
this title, his making a charge, testifying, assisting, or 
participating in any manner in an investigation, proceeding, or hearing 
under this title, or his communicating with the Congress regarding 
discrimination in violation of this section was a contributing factor 
in an adverse personnel action that was taken or is to be taken against 
such employee or applicant.
    ``(B) On a claim in which a Federal employee proves a violation 
under subparagraph (A) and a respondent demonstrates, on the basis of 
the evidentiary standard specified in section 1221(e)(2) of title 5 of 
the United States Code, that the respondent would have to take the same 
personnel action in the absence of the impermissible motivating factor, 
the court--
            ``(i) may grant declaratory relief, injunctive relief 
        (except as provided in clause (ii)), and attorney's fees and 
        costs demonstrated to be directly attributable only to the 
        pursuit of a claim under subparagraph (A); and
            ``(ii) shall not award damages or issue an order requiring 
        any admission, reinstatement, hiring, promotion, or payment not 
        described in clause (i).'',
            (2) by striking subsection (c),
            (3) in subsection (d)--
                    (A) by inserting ``(1)'' after ``(d)'',
                    (B) by striking ``(k)'' and inserting ``(j)'',
                    (C) by striking ``brought hereunder'' and inserting 
                ``commenced under this section'', and
                    (D) by adding at the end the following:
    ``(2) The head of the department, agency, or unit in which 
discrimination in violation of this section is alleged to have occurred 
shall be the defendant in a civil action alleging such violation. If a 
department, unit, or agency is named as the defendant, the court shall 
freely grant leave to amend the complaint to name the head of such 
department, agency, or unit.
    ``(3)(A) In any action or proceeding under this section, the court, 
in its discretion, may allow the prevailing party (other than an entity 
of the Federal Government) a reasonable attorney's fee (including 
expert fees) and costs as a court has authority to award under section 
706(k), as amended from time to time, and the same interest to 
compensate for delay in payment as in cases involving nonpublic 
parties.
    ``(B) If an action brought under this section by or on behalf a 
Federal employee is found by the court to be unreasonable, groundless, 
or vexatious, the court, in its discretion, may allow the respondent a 
reasonable attorney's fee (including expert fees), costs, and interest 
as a court has authority to award in an action to a prevailing party 
under subparagraph (A).'',
            (4) by redesignating subsections (d) and (e) as subsections 
        (o) and (p), respectively, and
            (5) by inserting after subsection (b) the following:
    ``(c)(1)(A) Except as provided in subparagraphs (B), (C), (D), and 
(E), a complaint filed by or on behalf of a Federal employee or a class 
of Federal employees and alleging a claim of discrimination arising 
under this section shall name as the respondent, and be filed with, the 
head of the department, agency, or unit in which such discrimination is 
alleged to have occurred, or with the Commission--
            ``(i) not later than 180 days after the alleged 
        discrimination occurs, except as provided in clause (ii); and
            ``(ii) in the case of a respondent that provides to such 
        employee a voluntary alternative dispute resolution process 
        approved by the Commission in accordance with rules issued by 
        the Commission under section 12005(a)(4) of the Economic Equity 
        Act of 1996, after the expiration of the 20-day period 
        beginning on the date the Federal employee specifically named 
        in the complaint (or an individual authorized to represent such 
        Federal employee or both) requests and offers to meet once with 
        an individual authorized to represent the respondent in 
        accordance with subparagraph (B) to engage in the precomplaint 
        conciliation approved under such section by the Commission to 
        be provided by the respondent, except that such 20-day period 
        shall be excluded for purposes calculating such 180 days.
    ``(B) For purposes of subparagraph (A)(ii)--
            ``(i) conciliation shall occur during the regular working 
        hours of such Federal employee; and
            ``(ii) an individual may not be authorized to represent the 
        respondent if such individual--
                    ``(I) has or has had any involvement in the 
                circumstances relating to any of such claims; or
                    ``(II) has or has had supervisory authority over 
                such Federal employee.
    ``(C) If, not later than 180 days (determined under subparagraph 
(A)) after the alleged discrimination occurs, the complaint is filed--
            ``(i) with such department, agency, or unit and fails to 
        name the head of the department, agency, or unit as the 
        respondent; or
            ``(ii) except as provided in subparagraph (E), with any 
        other entity of the Federal Government, regardless of the 
        respondent named;
the complaint shall be considered to be filed in compliance with 
subparagraph (A).
    ``(D) A complaint filed under this section with respect to a claim 
of discrimination arising under this section shall be dismissed if--
            ``(i) such claim is a grievance that is subject to section 
        7121 of title 5, United States Code; and
            ``(ii) the aggrieved Federal employee has, in the 
        discretion of the Federal employee, exercised the option under 
        section 7121(d) of such title to raise the matter under the 
        negotiated grievance procedure before filing the complaint.
    ``(E) A complaint filed by or on behalf of a Federal employee, or a 
class of Federal employees, employed by a department, agency, or unit 
in the intelligence community (as defined by Executive Order 12333 or 
any successor to such order) and alleging a claim of discrimination 
arising under this section shall be filed with the department, agency, 
or unit in which such discrimination is alleged to have occurred not 
later than 180 days (determined under subparagraph (A)) after the 
alleged discrimination occurs.
    ``(2) If the complaint is filed with an entity of the Federal 
Government other than the department, agency, or unit in which such 
discrimination is alleged to have occurred, then--
            ``(A) such entity (other than the Commission) shall 
        transmit the complaint to the Commission, not later than 10 
        days after receiving the complaint; and
            ``(B) the Commission shall transmit a copy of the 
        complaint, not later than 10 days after receiving the 
        complaint, to the head of the department, agency, or unit in 
        which such discrimination is alleged to have occurred 
        (hereinafter in this section referred to as the `respondent').
    ``(3) Not later than 10 days after the respondent receives the 
complaint from a source other than the Commission, the respondent shall 
transmit to the Commission a copy of the complaint.
    ``(d) Throughout the period beginning on the date the respondent 
receives the complaint and ending on the latest date by which all 
administrative and judicial proceedings available under this section 
have been concluded with respect to such claim, the respondent shall 
collect and preserve documents and information (including the 
complaint) that are relevant to such claim, including the documents and 
information that comply with rules issued by the Commission.
    ``(e)(1) The respondent shall make reasonable efforts to conciliate 
each claim alleged in the complaint beginning on the date the complaint 
is filed under subsection (c). After the complaint is filed, the 
respondent shall promptly inform such Federal employee individually of 
the procedures and deadlines that apply under this section to a claim 
alleging such discrimination.
    ``(2)(A) With respect to such claim, the respondent may enter into 
a settlement agreement with such Federal employee.
    ``(B) The entity of the Federal Government with which the complaint 
is filed under subsection (c) shall immediately give formal written 
notice to such Federal employee that such Federal employee may either--
            ``(i) before the expiration of the 90-day period beginning 
        on the date such Federal employee receives such notice, file 
        with the Commission--
                    ``(I) a written request for a determination of such 
                claim under subsection (f) by an administrative judge 
                of the Commission, together with, at the option of such 
                Federal employee, a request that the administrative 
                judge request a stay described in subsection (f)(3)(A);
                    ``(II) if such claim alleges discrimination in the 
                Commission or alleges an action appealable to the Merit 
                Systems Protection Board, a written request electing 
                that a determination of such claim be made under the 
                procedures specified in either subparagraph (A) or (B) 
                of section 7702(a)(2) of title 5, United States Code, 
                or a request described in subclause (I); or
                    ``(III) if such claim alleges a grievance that is 
                subject to section 7121 of title 5, United States Code, 
                but not appealable to the Merit Systems Protection 
                Board, a written request to raise such claim under the 
                administrative and judicial procedures provided in such 
                section 7121 or a request described in subclause (I); 
                or
            ``(ii) in the 90-day period beginning on the date the 
        complaint is filed under subsection (c) or in the 90-day period 
        beginning on the date such Federal employee receives such 
        notice (whichever 90-day period begins later), commence a civil 
        action in an appropriate district court of the United States 
        for de novo review of such claim.
    ``(3)(A) Such Federal employee may either--
            ``(i) file a written request described in clause (i) of 
        paragraph (2)(B) at any time before the expiration of the 90-
        day period specified in clause (i) of such paragraph; or
            ``(ii) commence a civil action described in clause (ii) of 
        such paragraph before the expiration of the applicable 90-day 
period specified in paragraph (2)(B)(ii).
    ``(B) If such Federal employee files a written request under 
subclause (II) or (III) of paragraph (2)(B)(i) and in accordance with 
subparagraph (A)(i), the Commission shall transmit the complaint, not 
later than 10 days after the Commission receives the complaint, to the 
appropriate agency for determination.
    ``(f)(1) If such Federal employee files a written request under 
subsection (e)(2)(B)(i)(I) and in accordance with subsection (e)(3)(A) 
with the Commission for a determination under this subsection of a 
claim with respect to which notice is required by subsection (e)(2), 
then the Commission shall transmit a copy of such request to the 
respondent and, not later than 10 days after receiving such request, 
shall appoint an administrative judge of the Commission to determine 
such claim. If such request includes a request for a stay described in 
paragraph (3)(A), then the Commission shall appoint an administrative 
judge immediately after receiving such request.
    ``(2) Not later than 5 days after receiving a copy of a request 
under subsection (e)(2)(B)(i), the respondent shall transmit--
            ``(A) to the Commission if such request is for a 
        determination under this subsection; or
            ``(B) to the Merit Systems Protection Board if such request 
        is for a determination be made under the procedures specified 
        in section 7702(a)(2)(A) of title 5, United States Code;
a copy of all documents and information collected by the respondent 
under subsection (d) with respect to such claim.
    ``(3)(A) The administrative judge, in accordance with rules issued 
by the Commission, may request any member of the Commission to order a 
stay of any personnel action for 45 days if the administrative judge 
determines that there are reasonable grounds to believe that the 
personnel action was taken for discriminatory or retaliatory reasons 
prohibited under this section.
    ``(B)(i) Any member of the Commission requested under subparagraph 
(A) to order a stay shall order such stay unless the member determines 
that, under the facts and circumstances involved, such a stay does not 
comply with such rules or otherwise would not be appropriate.
    ``(ii) Unless denied under clause (i), any stay requested under 
subparagraph (A) shall be deemed to be ordered on the third calendar 
day (excluding Saturdays, Sundays, and legal holidays) after the date 
of the request.
    ``(C) If a stay is ordered under subparagraph (B), the member who 
received the request for such stay may terminate such stay at any time 
after giving notice, and an opportunity for oral or written comments, 
to the aggrieved Federal employee on whose behalf such stay was 
ordered.
    ``(D)(i) The Commission may extend the period of any stay granted 
under subparagraph (B) for any period that the Commission considers 
appropriate.
    ``(ii) Members of the Commission shall allow any entity of the 
Federal Government that would be subject to a stay, or to the extension 
of a stay, to comment to such members and the Commission on the request 
for such stay and on a request for such extension.
    ``(iii) The respondent shall comply with a stay in effect under 
this section.
    ``(4) The administrative judge shall determine whether the 
documents and information received under paragraph (2) comply with 
subsection (d) and are complete and accurate. If the administrative 
judge finds that the respondent has failed to produce the documents and 
information necessary to comply with such subsection, the 
administrative judge shall, in the absence of good cause shown by the 
respondent, impose any of the sanctions specified in paragraph (6)(C) 
and shall require the respondent--
            ``(A) to obtain any additional documents and information 
        necessary to comply with such subsection; and
            ``(B) to correct any inaccuracy in the documents and 
        information so received.
    ``(5)(A) After examining the documents and information received 
under paragraph (4), the administrative judge shall issue an order 
dismissing--
            ``(i) any frivolous claim alleged in the complaint;
            ``(ii) any claim of a Federal employee who fails to comply 
        with subsection (c)(1)(A)(ii) if applicable to such employee; 
        and
            ``(iii) the complaint if it fails to state a nonfrivolous 
        claim for which relief may be granted under this section.
    ``(B)(i) If a claim or the complaint is dismissed under 
subparagraph (A), the administrative judge shall give formal written 
notice to the aggrieved Federal employee that such Federal employee 
may, before the expiration of the 90-day period beginning on the date 
such Federal employee receives such notice--
            ``(I) file with the Commission a written request for 
        appellate review of such order; or
            ``(II) commence a civil action in an appropriate district 
        court of the United States for de novo review of such claim or 
        the complaint.
    ``(ii) Such Federal employee may commence such civil action after 
the dismissal of such claim or the complaint and before the expiration 
of the 90-day period specified in clause (i).
    ``(6)(A)(i) If the complaint is not dismissed under paragraph 
(5)(A), the administrative judge shall make a determination, after an 
opportunity for a hearing, on the merits of each claim that is not 
dismissed under such paragraph. The administrative judge shall make a 
determination on the merits of any other nonfrivolous claim under this 
section, and on the merits of any action such Federal employee may 
appeal to the Merit Systems Protection Board, reasonably expected to 
arise from the facts on which the complaint is based.
    ``(ii) On the request of the aggrieved Federal employee, the 
administrative judge shall--
            ``(I) determine whether the administrative proceeding with 
        respect to such claim may be maintained as a class proceeding; 
        and
            ``(II) if the administrative proceeding may be so 
        maintained, shall describe those whom the administrative judge 
        finds to be members of such class.
    ``(B) With respect to such claim, a party may conduct discovery by 
such means as may be available in a civil action to the extent deemed 
appropriate by the administrative judge.
    ``(C) If the aggrieved Federal employee or the respondent fails 
without good cause to respond fully and in a timely fashion to a 
request made or approved by the administrative judge for information or 
the attendance of a witness, and if such information or such witness is 
solely in the control of the party who so fails to respond, then the 
administrative judge shall--
            ``(i) draw an adverse inference that the requested 
        information, or the testimony of the requested witness, would 
        have reflected unfavorably on the party who so fails to 
        respond;
            ``(ii) consider the matters to which such information or 
        such testimony pertains to be established in favor of the 
        opposing party;
            ``(iii) exclude other evidence offered by the party who so 
        fails to respond;
            ``(iv) grant full or partial relief, including--
                    ``(I) relief of the kinds described in section 
                706(g); and
                    ``(II) compensatory damages for unlawful 
                intentional discrimination (not an employment practice 
that is unlawful because of its disparate impact) prohibited under this 
section, subject to the limitations specified in section 1977A(b)(3) of 
the Revised Statutes of the United States;
        to the aggrieved Federal employee; or
            ``(v) take such other action the administrative judge 
        considers to be appropriate.
    ``(D) In a hearing on a claim, the administrative judge shall--
            ``(i) limit attendance to persons who have a direct 
        connection with such claim;
            ``(ii) bring out pertinent facts and relevant employment 
        practices and policies, and ensure that the record is developed 
        for a full and fair determination of such claim, but exclude 
        irrelevant or unduly repetitious information;
            ``(iii) permit all parties to examine and cross examine 
        witnesses; and
            ``(iv) require that testimony be given under oath or 
        affirmation.
    ``(E) At the request of any party or the administrative judge, a 
transcript of all or part of such hearing shall be provided in a timely 
manner and simultaneously to the parties and the Commission. The 
respondent shall bear the cost of providing such transcript.
    ``(F) The administrative judge shall have authority--
            ``(i) to administer oaths and affirmations;
            ``(ii) to regulate the course of hearings;
            ``(iii) to rule on offers of proof and receive evidence;
            ``(iv) to issue subpoenas to compel--
                    ``(I) the production of documents or information by 
                the entity of the Federal Government in which 
                discrimination is alleged to have occurred; and
                    ``(II) the attendance of witnesses who are Federal 
                officers or employees of such entity;
            ``(v) to request the Commission to issue subpoenas to 
        compel the production of documents or information by any other 
        entity of the Federal Government or by the aggrieved Federal 
        employee, and the attendance of other witnesses, except that 
        any witness who is not an officer or employee of an entity of 
        the Federal Government may be compelled only to attend any 
        place--
                    ``(I) less than 100 miles from the place where such 
                witness resides, is employed, transacts business in 
                person, or is served; or
                    ``(II) at such other convenient place as is fixed 
                by the administrative judge;
        and shall be paid fees and allowances, by the party that 
        requests the subpoena, to the same extent that fees and 
        allowances are paid to witnesses under chapter 119 of title 28, 
        United States Code, as amended from time to time;
            ``(vi) to exclude witnesses whose testimony would be unduly 
        repetitious;
            ``(vii) to exclude any person from a hearing for 
        contumacious conduct, or for misbehavior, that obstructs such 
        hearing; and
            ``(viii) to grant full or partial relief, including--
                    ``(I) relief of the kinds described in section 
                706(g); and
                    ``(II) compensatory damages for unlawful 
                intentional discrimination (not an employment practice 
                that is unlawful because of its disparate impact) 
                prohibited under this section, subject to the 
                limitations specified in section 1977A(b)(3) of the 
                Revised Statutes of the United States.
    ``(G) The administrative judge and the Commission shall have 
authority to award to a prevailing party (other than an entity of the 
Federal Government)--
            ``(i) a reasonable attorney's fee (including expert fees) 
        and costs as a court has authority to award under section 
        706(k), as amended from time to time; and
            ``(ii) the same interest to compensate for delay in payment 
        as in cases involving nonpublic parties.
    ``(H) The Commission shall have authority to issue subpoenas 
described in subparagraph (F)(v).
    ``(I) In the case of contumacy or failure to obey a subpoena issued 
under subparagraph (F) or (H), the United States district court for the 
judicial district in which the person to whom the subpoena is addressed 
resides or is served may issue an order requiring such person to appear 
at any designated place to testify or to produce documentary or other 
evidence.
    ``(7)(A) Except as provided in subparagraph (B), the administrative 
judge shall issue a written order making the determination required by 
paragraph (6)(A), and granting or denying relief, not later than--
            ``(i)(I) 300 days after the complaint containing such claim 
        is filed by or on behalf of a Federal employee if such 
        complaint is filed in the 1-year period beginning on the 
        effective date of this subsection.
            ``(II) except as provided in subclause (I), 210 days after 
        the complaint containing such claim is filed by or on behalf of 
        a Federal employee; or
            ``(ii) 2 years and 30 days after the complaint containing 
        such claim is filed on behalf of a class of Federal employees;
except that these time periods shall be extended for 30 days if the 
administrative judge certifies, in writing, that such 30-day period is 
needed to secure additional documents or information from the 
respondent to have a complete administrative record.
    ``(B) The administrative judge shall issue such order not later 
than 30 days after the applicable period specified in subparagraph (A) 
if the administrative judge certifies in writing, before the expiration 
of such applicable period--
            ``(i) that such 30-day period is necessary to make such 
        determination; and
            ``(ii) the particular and unusual circumstances that 
        prevent the administrative judge from complying with the 
        applicable period specified in subparagraph (A).
    ``(C) The administrative judge may apply to the Commission to 
extend any period applicable under subparagraph (A) or (B) if manifest 
injustice would occur in the absence of such an extension.
    ``(D) The Commission--
            ``(i) may not grant such extension; or
            ``(ii) shall terminate such extension;
if the aggrieved Federal employee shows that such extension would 
prejudice a claim of, or otherwise harm, such Federal employee.
    ``(E) In addition to findings of fact and conclusions of law, such 
order shall include formal written notice to each party that before the 
expiration of the 90-day period beginning on the date such party 
receives such order--
            ``(i) the aggrieved Federal employee may commence a civil 
        action in an appropriate district court of the United States 
        for de novo review of a claim with respect to which such order 
        is issued; and
            ``(ii) unless and until a civil action is commenced in such 
        90-day period under clause (i) with respect to such claim, any 
        party may file with the Commission a written request for 
        appellate review of the determination made, and relief granted 
        or denied, in such order with respect to such claim.
    ``(F) Such Federal employee may commence such civil action at any 
time before the expiration of the 90-day period beginning on the date 
such Federal employee receives an order described in subparagraph (A).
    ``(G) If such order applies to more than one claim and if--
            ``(i) such employee does not commence a civil action in 
        accordance with subparagraph (E)(i); and
            ``(ii) neither party requests appellate review in 
        accordance with subparagraph (E)(ii);
with respect to a particular claim, then the determination made, and 
relief granted, in such order with respect to such particular claim 
shall be enforceable immediately.
    ``(g)(1) If a party files timely a written request in accordance 
with subsection (f)(5)(B)(i) or (f)(7)(E)(ii) with the Commission for 
appellate review of the determination made, and relief granted or 
denied, with respect to a claim in such order, then the Commission 
shall immediately transmit a copy of such request to the other parties 
involved and to the administrative judge who issued such order.
    ``(2) Not later than 7 days after receiving a copy of such request, 
the administrative judge shall transmit to the Commission the record of 
the proceeding on which such order is based, including all documents 
and information collected by the respondent under subsection (d).
    ``(3)(A) After allowing the parties to file briefs with respect to 
such determination, the Commission shall issue a written order with 
respect to such claim affirming, reversing, or modifying the applicable 
provisions of the order of the administrative judge not later than--
            ``(i) 150 days after receiving such request; or
            ``(ii) 30 days after such 150-day period if the Commission 
        certifies in writing, before the expiration of such 150-day 
        period--
                    ``(I) that such 30-day period is necessary to 
                review such claim; and
                    ``(II) the particular and unusual circumstances 
                that prevent the Commission from complying with clause 
                (i).
    ``(B) The Commission shall affirm the determination made, and 
relief granted or denied, by the administrative judge with respect to 
such claim if such determination and such relief are supported by a 
preponderance of the evidence in the record taken as a whole and are 
otherwise in accordance with law. The Commission shall accord 
substantial deference to the findings of fact of the administrative 
judge.
    ``(C) In addition to findings of fact and conclusions of law, the 
Commission shall include in its order formal written notice to the 
aggrieved Federal employee that, before the expiration of the 90-day 
period beginning on the date such Federal employee receives such order, 
such Federal employee may commence a civil action in an appropriate 
district court of the United States for de novo review of a claim with 
respect to which such order is issued.
    ``(D) Such Federal employee may commence such civil action at any 
time before the expiration of the 90-day period beginning on the date 
such Federal employee receives an order described in subparagraph (A).
    ``(h)(1) In addition to the periods authorized by subsections 
(f)(7)(F) and (g)(3)(D)--
            ``(A) during the period beginning 20 days after the 
        expiration of the applicable period specified in subparagraph 
        (A) or (B) of subsection (f)(7) and ending on the date the 
        administrative judge issues under such subsection an order with 
        respect to such claim; and
            ``(B) during the period beginning 20 days after the 
        expiration of the applicable period specified in subsection 
        (g)(3)(A) and ending on the date the Commission issues under 
        such subsection an order with respect to such claim;
such Federal employee may commence a civil action in an appropriate 
district court of the United States for de novo review of such claim.
    ``(2) Whenever a civil action is commenced timely and otherwise in 
accordance with this section to determine the merits of a claim arising 
under this section, the jurisdiction of the administrative judge or the 
Commission (as the case may be) to determine the merits of such claim 
shall terminate.
    ``(i) A Federal employee who prevails on a claim arising under this 
section may bring a civil action in an appropriate district court of 
the United States to enforce--
            ``(1) the provisions of a settlement agreement applicable 
        to such claim;
            ``(2) the provisions of an order issued by an 
        administrative judge under subsection (f)(7)(A) applicable to 
        such claim if--
                    ``(A) a request is not filed timely under 
                subsection (g)(1) for appellate review by the 
                Commission; and
                    ``(B) a civil action is not commenced timely under 
                subsection (g)(3)(D) for de novo review;
        of such claim; or
            ``(3) the provisions of an order issued by the Commission 
        under subsection (g)(3)(A) applicable to such claim if a civil 
        action is not commenced timely under subsection (g)(3)(D) for 
        de novo review of such claim.
    ``(j) Any amount awarded under this section (including fees, costs, 
and interest awarded under subsection (f)(6)(G)), or under title 28 of 
the United States Code, with respect to a violation of this section, 
shall be paid by the entity of the Federal Government that violated 
such subsection from any funds made available to such entity by 
appropriation or otherwise.
    ``(k)(1) An entity of the Federal Government against which a claim 
of discrimination is alleged in a complaint filed in an administrative 
proceeding or a civil action under this section shall grant the 
aggrieved Federal employee paid administrative leave if otherwise on 
duty, for time expended in accordance with rules issued by the 
Commission to carry out this section, except that such leave shall 
include reasonable time for--
            ``(A) preparation of a complaint based on such allegation;
            ``(B) conciliation required by subsection (c)(1)(A)(ii);
            ``(C) responding to requests made by the Commission 
        (including administrative judges) or the respondent for 
        information; and
            ``(D) attendance at such proceeding or action.
    ``(2) Except as provided in paragraph (1), an entity of the Federal 
Government shall grant a Federal employee--
            ``(A) paid administrative leave to participate for the 
        benefit of a claimant in an administrative proceeding or civil 
        action commenced under this section to the same extent and 
        under such circumstances as such entity would grant an employee 
        official duty or paid administrative leave to participate for 
        the benefit of a Federal entity in an administrative proceeding 
        or civil action commenced under this section against such 
        entity; and
            ``(B) other leave to participate for the benefit of a 
        claimant in an administrative proceeding or civil action 
        commenced under this section to the same extent and under such 
        circumstances as such entity would grant an employee other 
        leave to participate for the benefit of a Federal entity in an 
        administrative proceeding or civil action commenced under this 
        section against such entity.
    ``(l)(1) In enforcing compliance with an order issued by an 
administrative judge or the Commission, the Commission may make a 
written determination that--
            ``(A) any officer or employee of the agency, department, or 
        unit charged with complying with such order; or
            ``(B) any officer or employee of the United States 
        determined to be responsible for the failure of the agency, 
        department, or unit to comply with such order;
who is not an officer or employee appointed by the President by and 
with the advice and consent of the Senate, shall not be entitled to 
receive payment for service as an officer or employee for the period 
during which such order has not been complied with. The Commission 
shall certify to the Comptroller General of the United States that a 
determination under this paragraph has been made, and no payment shall 
be made out of the Treasury of the United States for any service 
specified in such determination.
    ``(2) In enforcing compliance with such order with respect to any 
officer or employee described in subparagraph (A) or (B) of paragraph 
(1) who is an officer or employee appointed by the President by and 
with the advice and consent of the Senate, the Commission shall notify 
the President that such officer or employee has failed to obey such 
order.
    ``(m) If with respect to the merits of a claim of intentional 
discrimination (other than an employment practice that is unlawful 
because of its disparate impact) prohibited by this section, a Federal 
employee prevails in a proceeding under subsection (f) or a civil 
action commenced under this section, then not later than 15 days after 
issuing an order finding liability under this section, the 
administrative judge or the district court involved shall transmit to 
the Office of Special Counsel a copy of such order.
    ``(n) This section, as in effect immediately before the effective 
date of the Economic Equity Act of 1996, shall apply with respect to 
employment in the Library of Congress.''.

SEC. 12002. AMENDMENTS TO THE AGE DISCRIMINATION IN EMPLOYMENT ACT AND 
              THE REHABILITATION ACT OF 1973.

    (a) Enforcement by EEOC.--(1) Section 15 of the Age Discrimination 
in Employment Act of 1967 (29 U.S.C. 633a) is amended--
            (A) by striking subsections (c) and (d),
            (B) by inserting after subsection (b) the following:
    ``(c)(1)(A) Except as provided in subparagraph (B), any individual 
aggrieved by a violation of subsection (a) of this section may file a 
complaint with the Commission in accordance with section 717 of the 
Civil Rights Act of 1964.
    ``(B) Subsections (c) and (d) of this section, as in effect 
immediately before the effective date of the Economic Equity Act of 
1996, shall apply with respect to employment in the Library of 
Congress.
    ``(2) Except as provided in paragraph (1)(B) and subsection (d), 
such section 717 shall apply to a violation alleged in a complaint 
filed under paragraph (1) in the same manner as such section applies to 
a claim arising under section 717 of such Act.
    ``(d)(1) If an individual aggrieved by a violation of this section 
does not file a complaint under subsection (c)(1), such individual may 
commence a civil action--
            ``(A) not less than 30 days after filing with the 
        Commission a notice of intent to commence such action; and
            ``(B) not more than 2 years after the alleged violation of 
        this section occurs;
in an appropriate district court of the United States for de novo 
review of such violation.
    ``(2) On receiving such notice, the Commission shall--
            ``(A) promptly notify all persons named in such notice as 
        prospective defendants in such action; and
            ``(B) take any appropriate action to ensure the elimination 
        of any unlawful practice.
    ``(3) Section 717(o) of the Civil Rights Act of 1964 (42 U.S.C. 
2000e-16(o)) shall apply to civil actions commenced under this 
subsection in the same manner as such section applies to civil actions 
commenced under section 717 of the Civil Rights Act of 1964.'',
            (C) in subsection (f)--
                    (i) by inserting ``(1)'' after ``(f)'',
                    (ii) by striking ``section 12(b)'' and inserting 
                ``sections 12(b) and 4(d)'', and
                    (iii) by adding at the end the following:
    ``(2)(A) Subject to subparagraph (B), an unlawful personnel action 
of the kind described in section 4(d) is established under subsection 
(a) if an employee or applicant for employment demonstrates that his 
opposing any practice made an unlawful employment practice by 
subsection (a), his making a charge, testifying, assisting, or 
participating in any manner in an investigation, proceeding, or hearing 
under this section, or his communicating with the Congress regarding 
discrimination in violation of subsection (a) was a contributing factor 
in an adverse personnel action that was taken or is to be taken against 
such employee or applicant.
    ``(B) On a claim in which a Federal employee proves a violation 
under subparagraph (A) and a respondent demonstrates, on the basis of 
the evidentiary standard specified in section 1221(e)(2) of title 5 of 
the United States Code, that the respondent would have taken the same 
personnel action in the absence of the impermissible motivating factor, 
the court--
            ``(i) may grant declaratory relief, injunctive relief 
        (except as provided in clause (ii)), and attorney's fees and 
        costs demonstrated to be directly attributable only to the 
        pursuit of a claim under subparagraph (A); and
            ``(ii) shall not award damages or issue an order requiring 
        any admission, reinstatement, hiring, promotion, or payment not 
        described in clause (i).'',
    (2) Section 505 of the Rehabilitation Act of 1973 (29 U.S.C. 794a) 
is amended--
            (A) in subsection (a)(1)--
                    (i) by inserting ``(A)'' after ``(a)(1)'',
                    (ii) by striking ``706(k)'' and inserting 
                ``706(j)'',
                    (iii) by striking ``through (k)'' and inserting 
                ``through (j)'', and
                    (iv) by adding at the end the following:
    ``(B) The first sentence of this paragraph, as in effect 
immediately before the effective date of the Economic Equity Act of 
1996, shall apply with respect to employment in the Library of 
Congress.'', and
            (B) in subsection (b) by striking ``In'' and inserting 
        ``Except as provided in subsection (a)(1), in''.
    (b) Opportunity To Commence Civil Action.--If a complaint filed 
under section 15 of the Age Discrimination in Employment Act of 1967 
(29 U.S.C. 633a), or section 501 of the Rehabilitation Act of 1973 (29 
U.S.C. 791)), with the Equal Employment Opportunity Commission is 
pending in the period beginning on the date of the enactment of this 
subtitle and ending on December 31, 1996, the individual who filed such 
complaint may commence a civil action under such section not later than 
June 30, 1997.

SEC. 12003. AMENDMENTS TO TITLE 5 OF THE UNITED STATES CODE.

    (a) Grievance Procedures.--Section 7121 of title 5, United States 
Code, is amended--
            (1) in subsection (a)(1) by inserting ``administrative'' 
        after ``exclusive'', and
            (2) in subsection (d)--
                    (A) by inserting ``(1)'' after ``(d)'',
                    (B) in the first sentence by inserting ``, in the 
                discretion of the aggrieved employee,'' after ``may'', 
                and
                    (C) in the last sentence by striking ``Selection'' 
                and all that follows through ``any other'', and 
                inserting the following:
    ``(2) An employee may commence, not later than 120 days after a 
final decision, a civil action in an appropriate district court of the 
United States for de novo review of a''.
    (b) Actions Involving Discrimination.--Section 7702 of title 5, 
United States Code, is amended to read as follows:
``Sec. 7702. Actions involving discrimination
    ``(a)(1) Notwithstanding any other provision of law, in the case of 
any employee or applicant for employment who--
            ``(A) is affected by--
                    ``(i) an action which the employee or applicant may 
                appeal to the Merit Systems Protection Board, or
                    ``(ii) an action, not described in clause (i)--
                            ``(I) on the part the Equal Employment 
                        Opportunity Commission, and
                            ``(II) with respect to which the employee 
                        or applicant makes an election under section 
                        717(e)(2)(B)(i)(II) of the Civil Rights Act of 
                        1964, and
            ``(B) alleges that a basis for the action was 
        discrimination prohibited by--
                    ``(i) section 717 of the Civil Rights Act of 1964 
                (42 U.S.C. 2000a-16),
                    ``(ii) section 6(d) of the Fair Labor Standards Act 
                of 1938 (29 U.S.C. 206(d)),
                    ``(iii) section 501 of the Rehabilitation Act of 
                1973 (29 U.S.C. 791),
                    ``(iv) sections 12 and 15 of the Age Discrimination 
                in Employment Act of 1967 (29 U.S.C. 631, 633a), or
                    ``(v) any rule, regulation, or policy directive 
                prescribed under any provision of law described in 
                clauses (i) through (iv) of this subparagraph,
the employee or applicant may raise the action as provided in paragraph 
(2).
    ``(2) For purposes of paragraph (1), the employee shall raise the 
action by filing a complaint in accordance with section 717 of the 
Civil Rights Act of 1964 and shall make a request described in section 
717(e)(2)(B)(i) selecting the procedures specified in one of the 
following subparagraphs:
            ``(A) The administrative and judicial procedures provided 
        under sections 7701 and 7703.
            ``(B) The administrative and judicial procedures provided 
        under section 7121.
            ``(C) The administrative and judicial procedures provided 
        under section 717 of the Civil Rights Act of 1964.
    ``(3) The agency (including the Board and the Equal Employment 
Opportunity Commission) that carries out such procedures shall apply 
the substantive law that is applied by the agency that administers the 
particular law referred to in subsection (a)(1) that prohibits the 
conduct alleged to be the basis of the action referred to in subsection 
(a)(1)(A).
    ``(b) If--
            ``(1) an employee elects the procedures specified in 
        subsection (a)(2)(C), and
            ``(2) the Equal Employment Opportunity Commission dismisses 
        under section 717(f)(5)(A) of the Civil Rights Act of 1964 a 
        claim that is based on the action raised by the employee,
then the employee shall have 20 days in which to raise the action under 
the procedures specified in subparagraph (A) or (B) of subsection 
(a)(2), except that no allegation of a kind described in subsection 
(a)(1)(B) may be raised under this subsection.
    ``(c) If at any time after the 120th day following the receipt 
under section 717(e)(3)(B) of the Civil Rights Act of 1964 of a 
complaint as a result of an election made under section 717(e)(2)(B)(i) 
of the Civil Rights Act of 1964 to raise an action under the procedures 
specified in subsection (a)(2)(A) there is no judicially reviewable 
action, an employee shall be entitled to file, not later than 240 days 
after making such election, a civil action in an appropriate district 
court of the United States for de novo review of the action raised 
under subsection (a).
    ``(d) Nothing in this section shall be construed to affect the 
right to trial de novo under any provision of law described in 
subsection (a)(1) after a judicially reviewable action.''.
    (c) Disciplinary Action.--(1) Section 1214 of title 5, United 
States Code, is amended by adding at the end the following:
    ``(g)(1) Whenever the Office of Special Counsel receives any copy 
of an order, in accordance with section 717(m) of the Civil Rights Act 
of 1964, with respect to a claim arising under section 717 of the Civil 
Rights Act of 1964, section 15(a) of the Age Discrimination in 
Employment Act of 1967, or section 501 of the Rehabilitation Act of 
1973, the Special Counsel shall investigate the matter to the extent 
necessary to determine whether there are reasonable grounds to believe 
that a prohibited personnel practice described in section 2302(b)(1) 
has occurred and, if so, shall seek the appropriate disciplinary action 
under section 1215.
    ``(2) A determination under this subsection shall be made not later 
than 180 days after the appropriate date under paragraph (3) for the 
last applicable event described in such paragraph.
    ``(3)(A) With respect to a claim--
            ``(i) to which an order issued by an administrative judge 
        of the Equal Employment Opportunity Commission applies, and
            ``(ii) with respect to which the aggrieved employee 
        neither--
                    ``(I) commences a civil action in accordance with 
                section 717(f)(7)(E)(i) of the Civil Rights Act of 
                1964, nor
                    ``(II) requests appellate review in accordance with 
                section 717(f)(7)(E)(ii) of the Civil Rights Act of 
                1964,
the appropriate date is the date on which the Office of Special Counsel 
receives a copy of an order (referred to in paragraph (1)) from the 
administrative judge.
    ``(B) With respect to a claim--
            ``(i) to which an order issued by the Equal Employment 
        Opportunity Commission applies, and
            ``(ii) with respect to which the aggrieved employee does 
        not commence a civil action in accordance with section 
        717(g)(3)(D),
the appropriate date is the date on which the Office of Special Counsel 
receives a copy of an order (referred to in paragraph (1)) from the 
Commission.
    ``(C) With respect to a claim to which a final judgment issued by a 
court of the United States applies, the appropriate date is the date on 
which the Office of Special Counsel receives a copy of an order 
(referred to in paragraph (1)) from such court.
    ``(4) For the purpose of this subsection--
            ``(A) the term `order' means an order issued on the merits;
            ``(B) the term `judgment' means a judgment issued on the 
        merits; and
            ``(C) the term `final judgment' means a judgment that is 
        either--
                    ``(i) not reviewed by any other court that has 
                authority to review such judgment; or
                    ``(ii) not reviewable by any other court.''.
    (2) Section 1218 of title 5, United States Code, is amended--
            (A) by inserting ``(a)'' before the first sentence; and
            (B) by adding at the end the following:
    ``(b) Any statistical or other information provided under the first 
sentence of subsection (a) shall specify with respect to each 
particular prohibited personnel practice, the extent to which such 
information relates to any matter referred to in section 1214(g), the 
disposition of such practice, and the basis for such disposition.''.
    (d) Recordkeeping.--(1) Chapter 23 of title 5, United States Code, 
is amended by adding at the end the following:
``Sec. 2306. Federal personnel records
    ``(a) For the purpose of this section--
            ``(1) the term `personnel action' has the meaning given 
        such term in section 2302(a)(2)(A);
            ``(2) the term `record' has the meaning given such term in 
        section 552a(a)(4); and
            ``(3) the term `employee' means an employee or applicant 
        for employment in any entity of the Federal Government to 
        which--
                    ``(A) section 717(a) of the Civil Rights Act of 
                1964 applies;
                    ``(B) section 501 of the Rehabilitation Act of 1973 
                applies; or,
                    ``(C) sections 12 and 15 of the Age Discrimination 
                in Employment Act of 1967 apply;
        but does not include any employee or applicant for employment 
        with respect to whom section 117, or title III (excluding 
        section 320), of the Civil Rights Act of 1991 applies.
    ``(b) Records relating to any personnel action taken with respect 
to an employee shall be maintained by the employing authority for at 
least the greater of--
            ``(1) 270 days after the effective date of the personnel 
        action to which such records relate; or
            ``(2) the period of time otherwise required under 
        applicable provisions of law, rule, or regulation, if any.
    ``(c) The Office of Personnel Management, in consultation with the 
Equal Employment Opportunity Commission, shall issue guidelines for the 
implementation of this section by an entity of the Federal Government 
(as defined in section 701 of the Civil Rights Act of 1964).''.
    (2) The table of sections for chapter 23 of title 5, United States 
Code, is amended by adding at the end the following:

``2306. Federal personnel records.''.
    (e) Conforming Amendments.--Section 7703(b) of title 5, United 
States Code, is amended--
            (1) in paragraph (1) by striking ``(1) Except as provided 
        in paragraph (2) of this subsection, a'' and inserting ``A'', 
        and
            (2) by striking paragraph (2).
    (f) Right To Intervene.--Section 1212(c)(2) of title 5, United 
States Code, is amended--
            (1) by striking ``(2)'' and inserting ``(2)(A)''; and
            (2) by adding at the end the following:
    ``(B) Consent under subparagraph (A) shall not be required, in the 
case of an appeal from an action, if--
            ``(i) section 7513(d) is the provision making the action 
        appealable to the Board;
            ``(ii) the appeal is brought in a matter with respect to 
        which a copy of an order has been received by the Office of 
        Special Counsel under section 717(m) of the Civil Rights Act of 
        1964; and
            ``(iii) 1 of the grounds for the action being appealed is 
        discrimination of a type described in section 2302(b)(1).''.

SEC. 12004. TECHNICAL AMENDMENTS.

    Section 717(b) of the Civil Rights Act of 1964 (42 U.S.C. 2000e-
16(b)) is amended by striking ``Civil Service Commission'' each place 
it appears and inserting ``Commission''.

SEC. 12005. ISSUANCE OF PROCEDURAL GUIDELINES AND NOTICE RULES.

    (a) Issuance of Certain Rules and Guidelines.--After providing 
notice in accordance with section 553(b) of title 5, United States 
Code, and not later than 1 year after the date of the enactment of this 
subtitle, the Equal Employment Opportunity Commission shall issue--
            (1) rules to assist entities of the Federal Government to 
        comply with section 717(d) of the Civil Rights Act of 1964, as 
        added by section 12002 of this subtitle,
            (2) rules establishing--
                    (A) a uniform written official notice to be used to 
                comply with section 717 of such Act, as added by 
                section 12002 of this subtitle, and
                    (B) detailed requirements applicable to collecting 
                and preserving documents and information under section 
                717(d), as added by section 12002 of this subtitle,
            (3) guidelines describing an alternative dispute resolution 
        process that may be used by entities of the Federal Government 
        (as defined in section 701(p) of the Civil Rights Act of 1964 
        (7 U.S.C. 2000e(p)), in their discretion, consistent with the 
        administrative process applicable to claims under section 717 
        of such Act, and
            (4) rules establishing the criteria, standards, and process 
        for obtaining Commission simultaneous approval of--
                    (A) a process for precomplaint conciliation of the 
                kind required by section 717(c)(1)(A)(i) of the Civil 
                Rights Act of 1964, and
                    (B) an alternative dispute resolution process for 
                purposes of such section.
    (b) Publication of Proposed Guidelines.--Not later than 180 days 
after the date of the enactment of this subtitle, the Equal Employment 
Opportunity Commission shall publish in the Federal Register proposed 
guidelines of the kind described in subsection (a)(3) and proposed 
rules of the kind described in subsection (a)(4), and allow not less 
than 30 days for public comment before issuing guidelines and rules 
under paragraphs (3) and (4) of subsection (a).
    (c) Standards for Alternative Dispute Resolution Processes.--The 
guidelines required by subsections (a) and (b) shall provide for 
alternative dispute resolution processes that include--
            (1) procedural rules applicable to the operation of such 
        processes, including a description of the roles of Federal 
        employees and the authorized representatives of such employees 
        in such processes,
            (2) an opportunity for meaningful participation by Federal 
        employees, and their authorized representatives if appropriate, 
        in the design and development of such processes and such rules,
            (3) methods for selecting and training qualified 
        facilitators, including the use of nonparty neutrals not from 
        the employing activities,
            (4) providing to the parties access to relevant documents 
        and witnesses,
            (5) application of decisional law and legal principles,
            (6) periodic evaluation of the efficacy of facilitators,
            (7) periodic evaluation of the efficacy of the alternative 
        dispute resolution process and conciliation (including 
        precomplaint conciliation), and reporting on the resolution and 
        settlement of disputes under such process, and
            (8) confidentiality of communications (including offers of 
        settlement) among participants in such process.
    (d) Identification of Approved Alternative Dispute Resolution 
Processes.--Not later than 21 months after the date of the enactment of 
this subtitle, and annually thereafter, the Equal Employment 
Opportunity Commission shall publish in the Federal Register the names 
of the entities of the Federal Government (as defined in section 701 of 
the Civil Rights Act of 1964) that provide a voluntary alternative 
dispute resolution process approved by the Commission in accordance 
with the rules in effect under subsection (a)(4).
    (e) Voluntary Settlement Program.--The Equal Employment Opportunity 
Commission shall issue rules establishing a program and procedures, 
consistent with the administrative adjudication of claims under section 
717 of the Civil Rights Act of 1964 as amended by this subtitle, to 
foster the voluntary settlement of such claims.
    (f) Reporting Requirement.--Section 705 of the Civil Rights Act of 
1964 (42 U.S.C. 2000-e4) is amended by adding at the end the following:
    ``(l) The Commission shall include in each report made under 
subsection (e) the following information separately identified with 
respect to each entity of the Federal Government for the period for 
which such report is made:
            ``(1) The number of Federal employees who participated in 
        conciliation provided under section 717(c)(1)(A)(ii) as added 
        by the Economic Equity Act of 1996.
            ``(2) The number of such employees who entered into a 
        settlement under section 717, as amended by such Act, for 
        relief of any kind.
            ``(3) The number of such employees who filed complaints 
        under such section 717.
            ``(4) The number of other Federal employees who filed 
        complaints under such section.
The head of each such entity shall provide such information timely to 
the Commission to enable the Commission to comply with this 
subsection.''.

SEC. 12006. ISSUANCE OF RULES REGARDING CLASSIFIED INFORMATION.

    (a) Rules Required.--The Equal Employment Opportunity Commission, 
in consultation with the Director of Central Intelligence, the 
Secretary of Defense, and the Director of the Information Security 
Oversight Office of the General Services Administration, shall issue 
rules to ensure the protection of classified information and national 
security information in administrative proceedings under section 717 of 
the Civil Rights Act of 1964 (42 U.S.C. 2000e-16). Such rules shall 
include a requirement that complaints filed under section 717(c) of 
such Act that bear on classified information shall be handled only by 
administrative judges, and other personnel, who have appropriate 
security clearances.
    (b) Definition.--For purposes of subsection (a), the term 
``classified information'' has the meaning given such term in section 
606(1) of the National Security Act of 1947 (50 U.S.C. 426(1)).

SEC. 12007. RULES OF CONSTRUCTION.

    Any reference in any law (other than title VII of the Civil Rights 
Act of 1964) to any provision of title VII of the Civil Rights Act of 
1964 amended by this subtitle shall be deemed to be a reference to such 
provision as amended by this subtitle.

SEC. 12008. SENSE OF THE CONGRESS.

    (a) Appropriation of Funds.--It is the sense of the Congress that 
because the amendments made by this subtitle--
            (1) impose on the Equal Employment Opportunity Commission 
        additional administrative responsibility in the processing of 
        claims of Federal employees based on discrimination in 
        employment, and
            (2) increase the financial burden on the Commission to 
        carry out such responsibility,
the amount appropriated to the Commission to carry out laws prohibiting 
discrimination in Federal employment should be increased accordingly to 
enable the Commission to carry out its additional responsibility.
    (b) Payment of Relief Awarded.--It is the sense of the Congress 
that the payment of any relief awarded under section 717 of the Civil 
Rights Act of 1964 (42 U.S.C. 20003-16) should not be made by any 
Federal agency out of any funds appropriated to such agency for the 
salaries and expenses.

SEC. 12009. EFFECTIVE DATES; APPLICATION OF AMENDMENTS.

    (a) General Effective Date.--Except as provided in subsections (b) 
and (c), this subtitle and the amendments made by this subtitle shall 
take effect on January 1, 1998.
    (b) Effective Date of Sections 12005 and 12006.--Sections 12005 and 
12006 shall take effect on the date of the enactment of this subtitle.
    (c) Application of Amendments.--The amendments made by this 
subtitle shall not apply with respect to--
            (1) complaints filed under section 717 of the Civil Rights 
        Act of 1964 (42 U.S.C. 2000e-16) before the effective date of 
        this subtitle; and
            (2) proceedings pending under title 5 of the United States 
        Code before the effective date of this subtitle.

                Subtitle C--Legislative Pay Equity Study

SEC. 13001. DECLARATION OF POLICY.

    The Congress is committed to the elimination of all forms of 
discrimination that adversely affect pay or working conditions of any 
employee because of the race, color, religion, sex, or national origin 
of the employee, and it is the policy of the Congress that persons 
employed in the legislative branch shall receive equal pay in cases in 
which the work performed is comparable, as measured by the composite of 
skill, effort, responsibility, and working conditions normally required 
in the performance of the job.

SEC. 13002. ESTABLISHMENT OF COMMISSION.

    (a) In General.--There is established the Commission on Employment 
Discrimination in the Legislative Branch (hereinafter in this subtitle 
referred to as the ``Commission'').
    (b) Appointment of Members.--The Commission shall consist of 
thirteen members to be appointed for the life of the Commission as 
follows:
            (1) Four shall be Members of the House of Representatives, 
        appointed by the Speaker of the House of Representatives, two 
        upon recommendation of the majority leader and two upon 
        recommendation of the minority leader.
            (2) Four shall be Senators, appointed by the President pro 
        tempore, two upon recommendation of the majority leader and two 
        upon recommendation of the minority leader.
            (3) Two shall be other than Members of Congress, appointed 
        by the Speaker of the House of Representatives and shall, to 
        the extent practicable, be persons with expertise in job 
        evaluation. One such member shall be appointed upon 
        recommendation of the majority leader and one upon 
        recommendation of the minority leader.
            (4) Two shall be other than Members of Congress, appointed 
        by the President pro tempore of the Senate and shall, to the 
        extent practicable, be persons with expertise in job 
        evaluation. One such member shall be appointed upon 
        recommendation of the majority leader and one shall be 
        appointed upon recommendation of the minority leader.
            (5) One shall be appointed by the Speaker of the House of 
        Representatives and the President pro tempore of the Senate, 
        acting jointly, upon recommendation of the members appointed 
        under paragraphs (1) through (4).
    (c) Prerequisites Relating to Certain Appointments.--(1) Of the 
members of the Commission appointed under subsection (b)(3)--
            (A) one shall be a member of one of the two largest labor 
        unions at the Library of Congress; and
            (B) one shall be a manager at the Library of Congress.
    (2) Of the members of the Commission appointed under subsection 
(b)(4)--
            (A) one shall be a member of one of the two largest labor 
        unions at the Library of Congress; and
            (B) one shall be a manager at the Library of Congress.
    (3) The member appointed under paragraph (1)(A) shall not be from 
the same labor union as the member appointed under paragraph (2)(A).
    (d) Removal.--The person making an appointment may remove a member 
of the Commission for neglect of duty or malfeasance in office.
    (e) Vacancies.--A vacancy in the Commission shall be filled in the 
manner in which the original appointment is made.
    (f) Chairman; Vice Chairman.--The Commission shall elect a chairman 
and a vice chairman from among its members. The chairman and vice 
chairman shall not be of the same political party.
    (g) Quorum.--Seven members of the Commission shall constitute a 
quorum for the transaction of business, but the Commission may 
establish a lesser number for holding hearings, taking testimony, and 
receiving evidence.
    (h) Commencement of Operations.--Members shall be appointed and the 
Commission shall commence operation not later than four weeks after the 
date on which this subtitle is agreed to.

SEC. 13003. FUNCTIONS OF COMMISSION.

    (a) In General.--The Commission shall--
            (1) employ a nongovernmental consultant with expertise in 
        job evaluation to study and compare the compensation paid 
        within and between job classifications in the Library of 
        Congress and to analyze personnel policies and practices in the 
        Library of Congress;
            (2) evaluate the compensation system and personnel policies 
        and practices in the Library of Congress for compliance with 
        title VII of the Civil Rights Act of 1964 and make specific 
        recommendations (other than any recommendation that, if 
        implemented, would result in a reduction in the rate of pay 
        payable for any position) to the Congress for such action as 
        may be necessary to achieve that compliance;
            (3) develop a comprehensive plan for application of the 
        principles of title VII of the Civil Rights Act of 1964 
        throughout the legislative branch; and
            (4) make specific recommendations (other than any 
        recommendation that, if implemented, would result in a 
        reduction in the rate of pay payable for any position) to the 
        Congress for improvement of personnel policies and practices in 
        the legislative branch that may be necessary to carry out the 
        policy declared in section 13001.
    (b) Specific Requirement Relating to the Consultant.--In carrying 
out the requirements of paragraph (1) of subsection (a), the consultant 
employed under such paragraph shall use standard objective job-
evaluation techniques to determine whether the compensation system at 
the Library of Congress is in compliance with the policy objectives in 
section 13001.

SEC. 13004. STAFF OF COMMISSION.

    (a) Staff Director.--The Commission shall have a staff director who 
shall be appointed by the chairman and who shall be paid at a rate not 
to exceed the maximum rate of basic pay payable under the General 
Schedule (as determined under section 5376 of title 5, United States 
Code).
    (b) Additional Staff.--With the approval of the Commission, the 
chairman may appoint, terminate, and fix the pay of additional staff. 
Any person so appointed may be paid at a rate not to exceed the maximum 
rate of basic pay payable for grade GS-15 of the General Schedule, 
under section 5332 of title 5, United States Code.

SEC. 13005. COMPENSATION OF MEMBERS.

    (a) Prohibition of Compensation of Certain Members.--A member of 
the Commission who is a Member of Congress or a full-time officer or 
employee of the United States shall receive no additional pay by reason 
of service on the Commission.
    (b) Compensation of Other Members.--Any other member of the 
Commission shall be paid at a rate equal to the daily equivalent of the 
maximum annual rate of basic pay payable under the General Schedule (as 
determined under section 5376 of title 5, United States Code) for each 
day, including travel time, such member is engaged in the performance 
of duties of the Commission.

SEC. 13006. POWERS OF COMMISSION.

    The Commission may hold hearings, take testimony, receive evidence, 
administer oaths or affirmations to witnesses appearing before it, and 
authorize any member or agent of the Commission to exercise such 
powers.

SEC. 13007. REPORTS AND TERMINATION OF COMMISSION.

    The Commission may submit interim reports to the Congress and shall 
submit a final report to the Congress not later than 18 months after 
the date on which this subtitle is agreed to. The Commission shall 
cease to exist thirty days after submitting the final report.

SEC. 13008. ADMINISTRATIVE PROVISIONS.

    (a) Funding.--There shall be paid from the applicable accounts of 
the House of Representatives and from the contingent fund of the Senate 
such sums as may be necessary to carry out this subtitle. One-half of 
the total of such sums shall be paid from each such source. Payment 
shall be upon vouchers submitted by the chairman of the Commission and 
approved by the Committee on House Oversight of the House of 
Representatives or the Committee on Rules and Administration of the 
Senate, as appropriate.
    (b) Status of Members and Staff.--Members of the Commission (other 
than Members of Congress) and the staff of the Commission shall be 
treated as detailed employees, or as temporary or intermittent 
employees of the House or of the Senate, as appropriate.
    (c) Regulations.--The Committee on House Oversight of the House of 
Representatives and the Committee on Rules and Administration of the 
Senate, acting jointly, shall prescribe such regulations as may be 
necessary to carry out this subtitle. Employment of experts and 
consultants, travel, procurement of support services, procedures for 
securing information, and other administrative matters with respect to 
the Commission shall be in accordance with such regulations.

                Subtitle D--Sexual Harassment Prevention

SEC. 14001. CIVIL ACTION.

    (a) Generally.--Whoever (including a governmental entity), in or 
affecting interstate or foreign commerce--
            (1) engages in any sexual harassment; or
            (2) retaliates against any person for opposing sexual 
        harassment or filing a complaint, or otherwise participating in 
        any manner, in a civil action under paragraph (1);
shall be liable to the person injured by that harassment or retaliation 
for any appropriate relief, which may include money damages. In a civil 
action under this section, the court may award a prevailing plaintiff a 
reasonable attorneys' fee and other litigation expenses (including 
expert witness fees) as a part of the costs.
    (b) What Constitutes Sexual Harassment.--
            (1) Generally.--As used in this section, the term ``sexual 
        harassment'' means conduct described in paragraph (2) in a 
        relationship described in paragraph (3).
            (2) Conduct.--The conduct referred to in paragraph (1) is 
        an unwelcome sexual advance, unwelcome request for sexual 
        favors, or other unwelcome conduct of a sexual nature where--
                    (A) submission to such conduct is either explicitly 
                or implicitly a term or condition of the relationship 
                described in paragraph (3);
                    (B) submission to or rejection of such conduct is 
                the basis for decisions or actions regarding the person 
                who submitted to or rejected that conduct; or
                    (C) such conduct has the purpose or effect of 
                unreasonably interfering with the relationship 
                described in paragraph (3) or creates an intimidating, 
                hostile, or offensive environment within that 
                relationship.
            (3) Relationship.--The relationship referred to in 
        paragraphs (1) and (2) is a relationship--
                    (A) between a patient and a physician, 
                psychotherapist, or dentist;
                    (B) between a client and an attorney, marriage, 
                family, or child counselor, social worker, or 
                accountant;
                    (C) between a beneficiary and an executor, trustee, 
                or administrator of a trust or estate;
                    (D) between an employee and an employer, if the 
                employer has fewer than 15 employees for each working 
                day in each of 33 or more calendar weeks in the current 
                and in the preceding calendar year; or
                    (E) between the parties to a contract or between 
                persons negotiating a contract or seeking to enforce 
                claimed rights under a contract.
    (c) Effective Date.--This subtitle shall take effect 180 days after 
the date of the enactment of this subtitle.

SEC. 14002. ADDITIONAL FUNDING FOR THE EQUAL EMPLOYMENT OPPORTUNITY 
              COMMISSION.

    In addition to any other sums authorized to be appropriated to the 
Equal Employment Opportunity Commission, there are authorized to be 
appropriated to such Commission $268,000,000 for fiscal year 1997, and 
such sums thereafter as may be necessary.

               Subtitle E--Sexual Harassment Information

SEC. 15001. FINDINGS AND PURPOSES.

    (a) Findings.--The Congress finds the following:
            (1) Sexual harassment in employment persists widely in the 
        workplace, although it violates title VII of the Civil Rights 
        Act of 1964 and adversely affects employees.
            (2) According to guidelines issued by the Equal Employment 
        Opportunity Commission in 1980, the most effective tool for 
        eliminating sexual harassment is prevention.
            (3) The United States Merit Systems Protection Board found 
        in 1981 and 1988 surveys of Federal Government employees that 
        42 percent of female employees and 14 percent of male employees 
        questioned had experienced some kind of harassment in 
        employment. The American Psychological Association estimates 
        that at least \1/2\ of all working women have been sexually 
        harassed at the workplace during their careers.
            (4) The vast majority of sexual harassment episodes go 
        unreported to a supervisory employee or other individual 
        designated by the employer. Only 5 percent of the Federal 
        Government employees who indicated in the 1988 Merit Systems 
        Protection Board survey that they had been harassed filed a 
        formal complaint or requested an investigation of the 
        harassment.
            (5) Sexual harassment has a significant cost for employees 
        and employers. A 1988 study by Working Woman Magazine shows 
        that sexual harassment costs a typical ``Fortune 500'' private 
        employer $6,000,000, or $292.53 per employee, each year. The 
        same study estimates that it is 34 times more expensive for 
        such an employer to ignore the problem than it is to establish 
        effective programs and policies to address the problem.
            (6) Most job growth over the next decade is expected to 
        occur in employment by small employers. Sixty-six percent of 
        the individuals who will enter the work force during this 
        period are expected to be female. The establishment of programs 
        and policies in small-business environments, at a low cost to 
        employers, will be a key prevention priority to reduce sexual 
        harassment in employment.
    (b) Purposes.--The purposes of this subtitle are--
            (1) to establish workplace requirements that will reduce 
        the incidence of sexual harassment in employment,
            (2) to provide a low-cost system to assist employers to 
        establish programs and policies to prevent sexual harassment in 
        employment,
            (3) to raise the awareness of employees of the definition 
        of sexual harassment and of available avenues of redress, and
            (4) to increase the authority and capacity of the Equal 
        Employment Opportunity Commission to assist in preventing 
        sexual harassment in employment.

SEC. 15002. EMPLOYER REQUIREMENTS.

    (a) Posting of Notice in the Workplace.--Each employer shall post 
and keep posted in conspicuous places upon its premises where notices 
to employees and applicants for employment are customarily posted, a 
notice that shall be prepared or approved by the Commission and shall 
set forth--
            (1) the definition of sexual harassment found in section 
        1604.11(a) of title 29 of the Code of Federal Regulations (July 
        1, 1992),
            (2) the fact that sexual harassment in employment is a 
        violation of title VII of the Civil Rights Act of 1964,
            (3) information describing how to file a claim alleging 
        such harassment, including information on the time periods 
        within which an alleged victim of discrimination (including 
        sexual harassment) must file a claim in order to satisfy the 
        applicable statute of limitations applicable to such claim,
            (4) an address, and the toll-free telephone number, to be 
        used to contact the Commission regarding such harassment or 
        compliance with the requirements of this subtitle, and
            (5) such other information as the Commission may require.
    (b) Separate Notice to Individual Employees.--Each employer shall 
provide annually to each employee separately a written notice that 
includes--
            (1) the matters specified in paragraphs (1) through (4) of 
        subsection (a),
            (2) a description of the procedures established by such 
        employer to resolve allegations of sexual harassment in 
        employment, and
            (3) such other information as the Commission may require.
Such notice shall be provided in a manner that ensures that such 
employee actually receives such notice.
    (c) Management Information for Supervisory Employees.--Not later 
than 60 days after an employer places an individual in a supervisory 
employment position or 1 year after the date of the enactment of this 
subtitle, whichever occurs later, such employer shall provide to the 
supervisory employee information specifying the responsibilities of, 
and the methods to be used by, such employee to ensure that immediate 
and corrective action is taken to address allegations of sexual 
harassment in employment.
    (d) Civil Penalty.--A willful violation of this section shall be 
punishable by a civil penalty of not more than $1,000 for each separate 
violation.

SEC. 15003. DUTIES OF THE COMMISSION.

    (a) Technical Assistance Materials.--Not later than 180 days after 
the date of the enactment of this subtitle, the Commission shall 
prepare, revise from time to time as needed, and make available to 
employers at no cost (by publication in the Federal Register or other 
means)--
            (1) a model notice of the kind required by section 15002(a) 
        to be posted,
            (2) a model notice of the kind required by section 15002(b) 
        to be provided to employees, and
            (3) voluntary guidelines for the establishment of policies 
        and procedures by employers to address allegations of 
        discrimination (including sexual harassment) in employment.
    (b) Toll-Free Telephone Number.--Not later than 180 days after the 
date of the enactment of this subtitle, the Commission shall provide a 
toll-free telephone number for use by employees and employers in the 
United States to obtain--
            (1) information regarding compliance with this subtitle, 
        and
            (2) the model notices and guidelines prepared under 
        subsection (a).

SEC. 15004. ENFORCEMENT.

    Section 15002 shall be enforced--
            (1) by the Commission with respect to violations alleged by 
        employees as defined in subparagraphs (A), (B), and (C) of 
        section 15005(2), and
            (2) the Board of the Office of Compliance with respect to 
        violations alleged by employees as defined in subparagraph (D) 
        of section 15005(2).

SEC. 15005. DEFINITIONS.

    For purposes of this subtitle--
            (1) the term ``Commission'' means the Equal Employment 
        Opportunity Commission,
            (2) the term ``employee'' means--
                    (A) an employee as defined in section 701(f) of the 
                Civil Rights Act of 1964 (42 U.S.C. 2000e(f)),
                    (B) an employee referred to in section 717(a) of 
                such Act (42 U.S.C. 2000e-16(a)),
                    (C) an individual with respect to whom section 
                302(a)(1) of the Government Employee Rights Act of 1991 
                (2 U.S.C. 1202(a)(1)) applies, or
                    (D) a covered employee as defined in section 101 of 
                the Congressional Accountability Act of 1995 (Public 
                Law 104-1; 109 Stat. 3),
            (3) the term ``employer'' means--
                    (A) an employer as defined in section 701(b) of the 
                Civil Rights Act of 1964 (42 U.S.C. 2000e(b)),
                    (B) a Federal entity to which section 717(a) of the 
                Civil Rights Act of 1964 (42 U.S.C. 2000e-716(a)) 
                applies,
                    (C) an employing authority to which section 
                302(a)(1) of the Government Employee Rights Act of 1991 
                (2 U.S.C. 1202(a)(1)) applies, or
                    (D) an employing authority to which section 201(a) 
                of the Congressional Accountability Act of 1995 (Public 
                Law 104-1; 109 Stat. 3) applies, and
            (4) the term ``sexual harassment'' has the same meaning as 
        such term has for purposes of title VII of the Civil Rights Act 
        of 1964 (42 U.S.C. 2000e-2000e-17).

SEC. 15006. EFFECTIVE DATES.

    (a) General Effective Date.--Except as provided in subsection (b), 
this subtitle shall take effect on the date of the enactment of this 
subtitle.
    (b) Effective Date of Section 15002.--Section 15002 shall take 
effect 1 year after the date of the enactment of this subtitle.

                Subtitle F--Sexual Harassment Tax Equity

SEC. 16001. DEDUCTION FOR LEGAL EXPENSES OF INDIVIDUALS BRINGING SEXUAL 
              HARASSMENT SUITS AGAINST THEIR EMPLOYERS.

    (a) In General.--Part VII of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by redesignating section 220 
as section 221 and by inserting after section 219 the following new 
section:

``SEC. 220. LEGAL EXPENSES OF INDIVIDUALS BRINGING SEXUAL HARASSMENT 
              SUITS AGAINST THEIR EMPLOYERS.

    ``In the case of an individual, there shall be allowed as a 
deduction the amount paid during the taxable year for reasonable legal 
fees and related expenses (including attorney's fees) with respect to a 
sexual harassment suit by such individual against an employer or former 
employer.''
    (b) Deduction Allowed Whether or Not Taxpayer Itemizes.--Subsection 
(a) of section 62 of such Code is amended by inserting the following 
new paragraph after paragraph (15):
            ``(16) Sexual harassment suit legal costs.--The deduction 
        allowed by section 220.''
    (c) Clerical Amendment.--The table of sections for part VII of 
subchapter B of chapter 1 of such Code is amended by striking the item 
relating to section 220 and inserting the following new items:

                              ``Sec. 219. Legal expenses of individuals 
                                        bringing sexual harassment 
                                        suits against their employers.
                              ``Sec. 220. Cross reference.''
    (d) Effective Date.--The amendments made by this section shall 
apply to suits filed after January 1, 1997.

                       Subtitle G--Equal Remedies

SEC. 17001. EQUALIZATION OF REMEDIES.

    Section 1977A of the Revised Statutes, as added by section 102 of 
the Civil Rights Act of 1991, is amended--
            (1) in subsection (b)--
                    (A) by striking paragraph (3), and
                    (B) by redesignating paragraph (4) as paragraph 
                (3), and
            (2) in subsection (c) by striking ``section--'' and all 
        that follows through the period, and inserting ``section, any 
        party may demand a jury trial.''.

            Subtitle H--Federal Temporary Workers Protection

SEC. 18001. ELIGIBILITY FOR HEALTH BENEFITS.

    (a) In General.--Paragraph (4) of section 8913(b) of title 5, 
United States Code, is amended to read as follows:
            ``(4) an employee who is occupying a position on a 
        temporary basis, if such employee has, in the aggregate, 
        completed the equivalent of at least 1 year of service in such 
        position within the preceding 2 years.''.
    (b) Technical and Conforming Amendments.--(1) Section 8906a of 
title 5, United States Code, is repealed.
    (2) The table of sections for chapter 89 of title 5, United States 
Code, is amended by striking the item relating to section 8906a.

SEC. 18002. EFFECTIVE DATE.

    (a) In General.--This subtitle and the amendments made by this 
subtitle shall take effect on the date of the enactment of this 
subtitle, and any change in contributions payable by or on behalf of an 
individual to the Employees Health Benefits Fund (described in section 
8909 of title 5, United States Code) as a result of the enactment of 
this subtitle shall take effect as of the first applicable pay period 
beginning on or after such date.
    (b) Creditability of Prior Service.--Service performed before the 
effective date of this subtitle may be taken into account for purposes 
of the amendment made by section 18001(a).

                Subtitle I--Contingent Work Force Equity

SEC. 19001. EQUAL PAY.

    Section 6 of the Fair Labor Standards Act of 1938 (29 U.S.C. 206) 
is amended by adding at the end the following:
    ``(g)(1) No employer having employees subject to any provision of 
this section shall discriminate, within any establishment in which such 
employees are employed, between employees on the basis of employment 
status by paying wages to part-time or temporary employees in such 
establishment at a rate less than the rate at which the employer pays 
wages to full-time employees in such establishment for equal work on 
jobs the performance of which requires equal skill, effort, and 
responsibility and which are performed under similar working conditions 
unless such payment is made pursuant to--
            ``(A) a seniority system;
            ``(B) a merit system;
            ``(C) a system that measures earnings by quantity or 
        quality of production; or
            ``(D) a differential based on any other factor other than 
        employment status.
An employer who is paying a wage rate differential in violation of this 
paragraph shall not, in order to comply with the requirements of this 
paragraph, reduce the wage rate of any employee.
    ``(2) No labor organization, or its agents, representing employees 
of an employer having employees subject to any provision of this 
section shall cause or attempt to cause such an employer to 
discriminate against an employee in violation of paragraph (1).
    ``(3) For purposes of administration and enforcement of paragraph 
(1), any amount owing to any employee that has been withheld in 
violation of paragraph (1) shall be deemed to be unpaid minimum wages 
under subsection (a) or unpaid overtime compensation under section 7.
    ``(4) As used in paragraph (2), the term `labor organization' means 
any organization of any kind, or any agency or employee representation 
committee or plan, in which employees participate and which exists for 
the purpose, in whole or in part, of dealing with employers concerning 
grievances, labor disputes, wages, rates of pay, hours of employment, 
or conditions of work.''.

SEC. 19002. OCCUPATIONAL SAFETY AND HEALTH.

    (a) Amendment.--Section 5(a)(1) of the Occupational Safety and 
Health Act of 1970 (29 U.S.C. 654(a)(1)) is amended to read as follows:
            ``(1) shall furnish employment and a place of employment 
        that are free from recognized hazards that are causing or are 
        likely to cause death or serious physical harm to the employees 
        of the employer or to individuals who are employed by another 
        employer and are performing services at such place of 
        employment;''.
    (b) Study.--The Secretary of Labor shall conduct a study to 
determine if the health and safety of part-time or temporary employees 
are being adequately monitored and, if the monitoring is not adequate, 
to determine how such monitoring can be made adequate.

SEC. 19003. FAMILY AND MEDICAL LEAVE.

    (a) Family and Medical Leave Act.--Section 101(2)(A) of the Family 
and Medical Leave Act (29 U.S.C. 2611(2)(A)) is amended--
            (1) by striking ``at least 12 months'' and inserting ``at 
        least 3 months''; and
            (2) by striking ``at least 1,250 hours of service with such 
        employer during the previous 12-month period'' and inserting 
        ``at least 125 hours of service with such employer during the 
        previous 3-month period''.
    (b) Federal Employees.--Section 6381(1)(B) of title 5, United 
States Code, is amended by striking ``12 months'' and inserting ``3 
months''.
    (c) Congressional Employees.--Section 202(a)(2)(B) of the 
Congressional Accountability Act of 1995 is amended--
            (1) by striking ``for 12 months'' and inserting ``for 3 
        months''; and
            (2) by striking ``at least 1,250 hours of employement 
        during the previous 12 months'' and inserting ``at least 125 
        hours of employment during the previous 3-month period''.

SEC. 19004. CONTINGENT WORKFORCE SURVEY.

    The Secretary of Labor, acting through the Commissioner of the 
Bureau of Labor Statistics, shall establish and carry out an annual 
survey identifying--
            (1) the characteristics of temporary workers in the United 
        States;
            (2) the relationship between such workers and the 
        establishments at which such workers are temporarily employed; 
        and
            (3) where appropriate, the relationship between such 
        workers and their permanent employers.

SEC. 19005. COLLECTIVE BARGAINING RIGHTS.

    Section 9(b) of the National Labor Relations Act (29 U.S.C. 195(b)) 
is amended--
            (1) by striking ``; or (2)'' and inserting ``2'';
            (2) by striking ``or (3)'' and inserting ``; (3)''; and
            (3) by inserting before the period the following: ``; or 
        (4) decide that an employee shall be excluded from a unit 
        otherwise appropriate for the purposes of collective bargaining 
        based on the employee's part-time or temporary status, if such 
        employee (A) has a reasonable expectation of continued 
        employment; and (B) is employed by the employer on the date on 
        which eligibility for participation in a representation 
        election is determined and on the date of the election.''.

SEC. 19006. PROTECTION OF PART-TIME AND TEMPORARY WORKERS.

    (a) Treatment of Employees Working at Less Than Full-Time Under 
Participation, Vesting, and Accrual Rules Governing Pension Plans.--
            (1) Participation rules.--
                    (A) In general.--Section 202(a)(3) of the Employee 
                Retirement Income Security Act of 1974 (29 U.S.C. 
                1052(a)(3)) is amended by adding at the end the 
                following new subparagraph:
    ``(E)(i) For purposes of this paragraph, in the case of any 
employee who, as of the beginning of the 12-month period referred to in 
subparagraph (A)--
            ``(I) has customarily completed 500 or more hours of 
        service per year but less than 1,000 hours of service per year, 
        or
            ``(II) is employed in a type of position in which 
        employment customarily constitutes 500 or more hours of service 
        per year but less than 1,000 hours of service per year,
completion of 500 hours of service within such 12-month period shall be 
treated as completion of 1,000 hours of service.
    ``(ii) For purposes of this subparagraph, the extent to which 
employment in any type of position customarily constitutes less than 
1,000 hours of service per year shall be determined with respect to 
each pension plan in accordance with such regulations as the Secretary 
shall prescribe providing for consideration of facts and circumstances 
peculiar to the work-force constituting the participants in such 
plan.''.
                    (B) Conforming amendment.--Section 204(b)(1)(E) of 
                such Act (29 U.S.C. 1054(b)(1)(E)) is amended by 
                striking ``section 202(a)(3)(A)'' and inserting 
                ``subparagraphs (A) and (E) of section 202(a)(3)''.
            (2) Vesting rules.--
                    (A) In general.--Section 203(b)(2) of such Act (29 
                U.S.C. 1053(b)(2)) is amended by adding at the end the 
                following new subparagraph:
    ``(E)(i) For purposes of this paragraph, in the case of any 
employee who, as of the beginning of the period designated by the plan 
pursuant to subparagraph (A)--
            ``(I) has customarily completed 500 or more hours of 
        service per year but less than 1,000 hours of service per year, 
        or
            ``(II) is employed in a type of position in which 
        employment customarily constitutes 500 or more hours of service 
        per year but less than 1,000 hours of service per year,
completion of 500 hours of service within such period shall be treated 
as completion of 1,000 hours of service.
    ``(ii) For purposes of this subparagraph, the extent to which 
employment in any type of position customarily constitutes less than 
1,000 hours of service per year shall be determined with respect to 
each pension plan in accordance with such regulations as the Secretary 
shall prescribe providing for consideration of facts and circumstances 
peculiar to the work-force constituting the participants in such 
plan.''.
                    (B) 1-year breaks in service.--Section 203(b)(3) of 
                such Act (29 U.S.C. 1053(b)(3)) is amended by adding at 
                the end the following new subparagraph:
    ``(F)(i) For purposes of this paragraph, in the case of any 
employee who, as of the beginning of the period designated by the plan 
pursuant to subparagraph (A)--
            ``(I) has customarily completed 500 or more hours of 
        service per year but less than 1,000 hours of service per year, 
        or
            ``(II) is employed in a type of position in which 
        employment customarily constitutes 500 or more hours of service 
        per year but less than 1,000 hours of service per year,
completion of 250 hours of service within such period shall be treated 
as completion of 500 hours of service.
    ``(ii) For purposes of this subparagraph, the extent to which 
employment in any type of position customarily constitutes less than 
1,000 hours of service per year shall be determined with respect to 
each pension plan in accordance with such regulations as the Secretary 
shall prescribe providing for consideration of facts and circumstances 
peculiar to the work-force constituting the participants in such 
plan.''.
            (3) Accrual rules.--Section 204(b)(4)(C) of such Act (29 
        U.S.C. 1054(b)(4)(C)) is amended--
                    (A) by inserting ``(i)'' after ``(C)''; and
                    (B) by adding at the end the following new clauses:
    ``(ii) For purposes of this subparagraph, in the case of any 
employee who, as of the beginning of the period designated by the plan 
pursuant to clause (i)--
            ``(I) has customarily completed 500 or more hours of 
        service per year but less than 1,000 hours of service per year, 
        or
            ``(II) is employed in a type of position in which 
        employment customarily constitutes 500 or more hours of service 
        per year but less than 1,000 hours of service per year,
completion of 500 hours of service within such period shall be treated 
as completion of 1,000 hours of service.
    ``(iii) For purposes of clause (ii), the extent to which employment 
in any type of position customarily constitutes less than 1,000 hours 
of service per year shall be determined with respect to each pension 
plan in accordance with such regulations as the Secretary shall 
prescribe providing for consideration of facts and circumstances 
peculiar to the work-force constituting the participants in such 
plan.''.
    (b) Treatment of Employees Working at Less Than Full-Time Under 
Group Health Plans.
            (1) In general.--Part 2 of subtitle B of title I of such 
        Act is amended--
                    (A) by redesignating section 211 (29 U.S.C. 1061) 
                as section 212; and
                    (B) by inserting after section 210 (29 U.S.C. 1060) 
                the following new section:

       ``treatment of part-time workers under group health plans

    ``Sec. 211. (a) In General.--A reduction in the employer-provided 
premium under a group health plan with respect to any employee for any 
period of coverage solely because the employee's customary employment 
is less than full-time may be provided under such plan only if the 
employee is described in subsection (b) and only to the extent 
permitted under subsection (c).
    ``(b) Reductions Applicable to Employees Working Less Than Full-
Time.--
            ``(1) In general.--An employee is described in this 
        subsection if such employee, as of the beginning of the period 
        of coverage referred to in subsection (a)--
                    ``(A) has customarily completed less than 30 hours 
                of service per week, or
                    ``(B) is employed in a type of position in which 
                employment customarily constitutes less than 30 hours 
                of service per week.
            ``(2) Regulations.--For purposes of paragraph (1), whether 
        employment in any type of position customarily constitutes less 
        than 30 hours of service per week shall be determined with 
        respect to each group health plan in accordance with such 
        regulations as the Secretary shall prescribe providing for 
        consideration of facts and circumstances peculiar to the work-
        force constituting the participants in such plan.
    ``(c) Amount of Permissible Reduction.--The employer-provided 
premium under a group health plan with respect to any employee for any 
period of coverage, after the reduction permitted under subsection (a), 
shall not be less than a ratable portion of the employer-provided 
premium which would be provided under such plan for such period of 
coverage with respect to an employee who completes 30 hours of service 
per week.
    ``(d) Definitions.--For purposes of this section--
            ``(1) Group health plan.--The term `group health plan' has 
        the meaning provided such term in section 607(1).
            ``(2) Employer-provided premium.--
                    ``(A) In general.--The term `employer-provided 
                premium' under a plan for any period of coverage means 
                the portion of the applicable premium under the plan 
                for such period of coverage which is attributable under 
                the plan to employer contributions.
                    ``(B) Applicable premium.--For purposes of 
                subparagraph (A), in determining the applicable premium 
of a group health plan, principles similar to the principles applicable 
under section 604 shall apply.''.
            (2) Conforming amendments.--
                    (A) Section 201(1) of such Act (29 U.S.C. 1051(1)) 
                is amended by inserting ``, except with respect to 
                section 211'' before the semicolon.
                    (B) The table of contents in section 1 of such Act 
                is amended by striking the item relating to section 211 
                and inserting the following new items:

``Sec. 211. Treatment of part-time workers under group health plans.
``Sec. 212. Effective date.''.
    (c) Expansion of Definition of Employee To Include Certain 
Individuals Whose Services Are Leased or Contracted For.--Paragraph (6) 
of section 3 of such Act (29 U.S.C. 1002(6)) is amended--
            (1) by inserting ``(A)'' after ``(6)''; and
            (2) by adding at the end the following new subparagraph:
    ``(B) Such term includes, with respect to any employer, any person 
who is not an employee (within the meaning of subparagraph (A)) of such 
employer and who provides services to such employer, if--
            ``(i) such person has (pursuant to an agreement with such 
        employer or any other person) performed such services for such 
        employer (or for such employer and related persons (within the 
        meaning of section 144(a)(3) of the Internal Revenue Code of 
        1986)) for a period of at least 1 year (6 months in the case of 
        core health benefits) at the rate of at least 500 hours of 
        service per year, and
            ``(ii) such services are of a type historically performed, 
        in the business field of the employer, by employees (within the 
        meaning of subparagraph (A)).''.
    (d) Effective Dates.
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply with respect to 
        plan years beginning on or after January 1, 1997.
            (2) Special rule for collectively bargained plans.--In the 
        case of a plan maintained pursuant to 1 or more collective 
        bargaining agreements between employee representatives and 1 or 
        more employers ratified on or before the date of the enactment 
        of this subtitle, paragraph (1) shall be applied to benefits 
        pursuant to, and individuals covered by, any such agreement by 
        substituting for ``January 1, 1997'' the date of the 
        commencement of the first plan year beginning on or after the 
        earlier of--
                    (A) the later of--
                            (i) January 1, 1997, or
                            (ii) the date on which the last of such 
                        collective bargaining agreements terminates 
                        (determined without regard to any extension 
                        thereof after the date of the enactment of this 
                        subtitle), or
                    (B) January 1, 1999.
            (3) Plan amendments.--If any amendment made by this section 
        requires an amendment to any plan, such plan amendment shall 
        not be required to be made before the first plan year beginning 
        on or after January 1, 1998, if--
                    (A) during the period after such amendment made by 
                this section takes effect and before such first plan 
                year, the plan is operated in accordance with the 
                requirements of such amendment made by this section, 
                and
                    (B) such plan amendment applies retroactively to 
                the period after such amendment made by this section 
                takes effect and such first plan year.
        A plan shall not be treated as failing to provide definitely 
        determinable benefits or contributions, or to be operated in 
        accordance with the provisions of the plan, merely because it 
        operates in accordance with this paragraph.

SEC. 19007. UNEMPLOYMENT COMPENSATION.

    (a) Part-Time Employees; Independent Contractors.--Subsection (a) 
of section 3304 of the Internal Revenue Code of 1986 (relating to 
requirements for approval of State unemployment compensation laws) is 
amended by striking ``and'' at the end of paragraph (17), by 
redesignating paragraph (18) as paragraph (20), and by inserting after 
paragraph (17) the following new paragraphs:
            ``(18) in applying the State law provisions relating to 
        availability for work, active search for work, or refusal to 
        accept work, to an individual seeking part-time employment, the 
        term `suitable work' shall not include any work where the 
        individual would normally perform services for more hours per 
        week than the number of hours per week for which the individual 
        is available if the individual demonstrates good cause for the 
        individual's limited availability and such limitation does not 
        substantially impair the individual's current attachment to the 
        labor force;
            ``(19) the determination of whether an individual is an 
        employee of another person shall be made in accordance with 
        section 3306(i); and''.
    (b) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall take effect on January 1, 
        1997.
            (2) Special rule.--In the case of any State the legislature 
        of which has not been in session for at least 30 calendar days 
        (whether or not successive) between the date of the enactment 
        of this subtitle and January 1, 1997, the amendments made by 
        this section shall take effect 30 calendar days after the 1st 
        day on which such legislature is in session on or after January 
        1, 1998.

                     TITLE II--ECONOMIC OPPORTUNITY

           Subtitle A--Microenterprise Opportunity Expansion

SEC. 21001. PUBLIC ASSISTANCE PROVISIONS.

    (a) Business Assets Excluded From Resources and Income.--
            (1) AFDC.--
                    (A) Exclusion from resources.--Section 402(a)(7)(B) 
                of the Social Security Act (42 U.S.C. 602(a)(8)(A)) is 
                amended--
                            (i) by striking ``or'' at the end of clause 
                        (iii); and
                            (ii) by inserting before the semicolon the 
                        following: ``, or (v) any asset of the family 
                        which is primarily used for business purposes 
                        in a business owned, in whole or in part, by an 
                        individual eligible for aid under any State 
                        plan approved under this part; and''.
                    (B) Exclusion from income.--Section 402(a)(8)(A) of 
                such Act (42 U.S.C. 602(a)(8)(A)) is amended--
                            (i) by striking ``and'' at the end of 
                        clause (vii); and
                            (ii) by inserting after clause (viii) the 
                        following:
                    ``(ix) shall disregard from the income of any 
                child, relative, or other individual specified in 
                clause (ii) any asset which is primarily used for 
                business purposes in a business owned, in whole or in 
                part, by an individual eligible for aid under any State 
                plan approved under this part; and''.
            (2) SSI.--
                    (A) Exclusion from income.--Section 1612(b) of such 
                Act (42 U.S.C. 1382a(b)) is amended--
                            (i) by striking ``and'' at the end of 
                        paragraph (17);
                            (ii) in paragraph (18), by striking the 
                        period and inserting ``; and''; and
                            (iii) by adding at the end the following:
            ``(19) any asset of such individual (or such spouse) which 
        is primarily used for business purposes in a business owned, in 
        whole or in part, by an individual eligible for aid under any 
        State plan approved under part A of title IV.''.
                    (B) Exclusion from resources.--Section 1613(a) of 
                such Act (42 U.S.C. 1382b(a)) is amended--
                            (i) by striking ``and'' at the end of 
                        paragraph (9);
                            (ii) in paragraph (10), by striking the 
                        period and inserting ``; and''; and
                            (iii) by inserting after paragraph (10) the 
                        following:
            ``(11) any asset of (including any amount received as a 
        loan by) such individual (or such spouse) which is primarily 
        used for business purposes in a business owned, in whole or in 
        part, by an individual eligible for aid under any State plan 
        approved under part A of title IV.''.
    (b) Public Assistance Benefits Extended for Persons With Income 
From or Resources In A Microenterprise.--
            (1) AFDC and medicaid.--Section 402(a) of such Act (42 
        U.S.C. 602(a)) is amended by inserting after paragraph (28) the 
        following:
            ``(29) notwithstanding paragraphs (7) and (8), provide 
        that, during the 2-year period beginning on the first day any 
        member of a family eligible for benefits under the State plan 
        sells any good or service as part of operating a commercial 
        enterprise with 5 or fewer employees, which is owned in whole 
        or in part by such family member, all income of such family 
        member attributable to the enterprise and all resources in 
        which such family member has a beneficial interest used 
        primarily in the enterprise shall be disregarded in determining 
        the amount of aid to which the family is entitled under the 
        State plan;''.
            (2) SSI and medicaid.--
                    (A) Exclusion from income.--Section 1612(b) of such 
                Act (42 U.S.C. 1382a(b)), as amended by subsection 
                (a)(2)(A) of this section, is amended--
                            (i) by striking ``and'' at the end of 
                        paragraph (18);
                            (ii) in paragraph (19), by striking the 
                        period and inserting ``; and''; and
                            (iii) by adding at the end the following:
            ``(20) during the 2-year period beginning on the first day 
        such individual (or such spouse) sells any good or service as 
        part of operating a commercial enterprise with 5 or fewer 
        employees, which is owned in whole or in part by such 
        individual (or such spouse), all income of such individual (or 
        such spouse) attributable to the enterprise.''.
                    (B) Exclusion from resources.--Section 1613(a) of 
                such Act (42 U.S.C. 1382b(a)), as amended by subsection 
                (a)(2)(B) of this section, is amended--
                            (i) by striking ``and'' at the end of 
                        paragraph (10);
                            (ii) in paragraph (11), by striking the 
                        period and inserting ``; and''; and
                            (iii) by inserting after paragraph (11) the 
                        following:
            ``(12) during the 2-year period beginning on the first day 
        such individual (or such spouse) sells any good or service as 
        part of operating a commercial enterprise with 5 or fewer 
        employees, which is owned in whole or in part by such 
        individual (or such spouse), all resources of such individual 
        (or such spouse) that are used primarily in the enterprise.''.

SEC. 21002. UNEMPLOYMENT COMPENSATION FOR INDIVIDUALS STARTING 
              MICROENTERPRISES.

    (a) State Law Requirements.--Subsection (a) of section 3304 of the 
Internal Revenue Code of 1986 (relating to State law requirements) is 
amended by striking ``and'' at the end of paragraph (17), by 
redesignating paragraph (18) as paragraph (19), and by inserting after 
paragraph (17) the following new paragraph:
            ``(18) compensation shall be payable to individuals 
        starting microenterprises as provided in section 3(b) of the 
        Act for microenterprises; and''.
    (b) Payment of Compensation to Individuals Starting 
Microenterprises.--
            (1) In general.--For purposes of section 3304(a)(18) of the 
        Internal Revenue Code of 1986, a State law shall provide that--
                    (A) each individual who is an eligible individual 
                with respect to any benefit year shall be entitled to 
                receive regular or extended unemployment compensation, 
                as the case may be, without regard to any State or 
                Federal requirements relating to availability for work, 
                active search for work, or refusal to accept suitable 
                work, and
                    (B) such individual shall be considered to be 
                unemployed for purposes of the State and Federal laws 
                applicable to unemployment compensation, as long as the 
                individual is actively involved in the ownership and 
                operation of a microenterprise or the preparation of a 
                business plan for the ownership and operation of a 
                microenterprise and is receiving guidance or 
                consultation in starting up or operating a 
                microenterprise from an experienced entrepreneur or 
                provider of technical business assistance.
            (2) Authorization for using unemployment funds to provide 
        startup assistance.--Nothing in section 3304(a)(4) or 3306(f) 
        of the Internal Revenue Code of 1986 or section 303(a)(5) of 
        the Social Security Act shall prevent amounts in a State 
        unemployment fund from being used to provide assistance to 
        eligible individuals in starting microenterprises. The amount 
        of assistance so provided may be in the form of a lump sum and 
        shall be in lieu of the periodic payments of compensation to 
        which the individual would otherwise have been entitled and 
        shall not exceed the aggregate amount of compensation to which 
        the individual would otherwise have been so entitled.
            (3) Definitions.--For purposes of this section--
                    (A) Eligible individual.--The term ``eligible 
                individual'' means, with respect to any benefit year, 
                an individual who--
                            (i) is eligible to receive regular or 
                        extended compensation under the State law 
                        during such benefit year,
                            (ii) is starting a microenterprise in which 
                        the individual will have an ownership interest, 
                        and
                            (iii) submits a request to the State agency 
                        for compensation under this subsection.
                    (B) Microenterprise.--The term ``microenterprise'' 
                means any unincorporated trade or business with 5 or 
                fewer employees, 1 or more of whom own the enterprise.
                    (C) Other terms.--The terms ``compensation'', 
                ``extended compensation'', ``regular compensation'', 
``benefit year'', ``State'', and ``State law'' have the respective 
meanings given to such terms under section 205 of the Federal-State 
Extended Unemployment Compensation Act of 1970.

SEC. 21003. TREATMENT OF MICROENTERPRISE LOANS AND GRANTS BY INSURED 
              DEPOSITORY INSTITUTIONS AS COMMUNITY REINVESTMENT.

    Section 804 of the Community Reinvestment Act of 1977 (12 U.S.C. 
2903) is amended by adding at the end the following new subsections:
    ``(c) Microenterprise Loans.--
            ``(1) Treatment of loans and grants.--The following amounts 
        shall be treated as an investment in a regulated financial 
        institution's community for purposes of subsection (a):
                    ``(A) The amount of any loan described in paragraph 
                (2)(A) made by the regulated financial institution 
                directly to a microenterprise, if the loan is made in 
                accordance with the requirements of subsection (c).
                    ``(B) The amount of any grant or donation made by 
                the regulated financial institution to any 
                microenterprise intermediary to meet operating costs of 
                the intermediary, including the costs associated with 
                training, technical assistance, and other support 
                services provided by the intermediary to 
                microenterprises.
                    ``(C) The amount of any regulated financial 
                institution's investment in a revolving fund 
                established by the institution for loans to 
                microenterprise intermediaries for lending to 
                microenterprises if--
                            ``(i) the amount of the investment in the 
                        revolving fund is equal to or greater than the 
                        amount which is equal to 0.05 percent of the 
                        assets of the institution;
                            ``(ii) the regulated financial 
                        institution--
                                    ``(I) makes grants or donations 
                                described in subparagraph (B) to 
                                microenterprise intermediaries the 
                                total amount of which equals or exceeds 
                                the amount which is equal to 15 percent 
                                of the amount required to be invested 
                                in the revolving fund under clause (i); 
                                or
                                    ``(II) provides financial services, 
                                including the establishment and 
                                maintenance of a transaction account, 
                                for a microenterprise (or any 
                                individual who controls the 
                                microenterprise) who receives a 
                                microenterprise loan from a 
                                microenterprise intermediary, at 
                                preferential or reduced rates which are 
                                at least as favorable to the 
                                microenterprise as the rates offered 
                                for such services to the institution's 
                                most preferred commercial customers; 
                                and
                            ``(iii) loans from the revolving fund may 
                        be made only to microenterprise intermediaries 
                        who agree to use the proceeds of the loan to 
                        make microenterprise loans in accordance with 
                        the requirements of subsection (d).
            ``(2) Microenterprise loan.--For purposes of this 
        subsection and subsection (d), the term `microenterprise 
        loan'--
                    ``(A) means a loan--
                            ``(i) to a commercial enterprise with 5 or 
                        fewer employees, 1 or more of whom own the 
                        enterprise;
                            ``(ii) in amounts not less than $100 and 
                        not more than $10,000;
                            ``(iii) the interest rate on which is 
                        comparable to the interest rate charged on 
                        secured commercial loans offered by the 
                        regulated financial institution to the 
                        institution's most preferred commercial 
                        customers;
                            ``(iv) which--
                                    ``(I) is not secured by collateral; 
                                or
                                    ``(II) is secured by collateral the 
                                value of which, as a percentage of the 
                                amount of the loan, is substantially 
                                less than the percentage generally 
                                required by the institution for 
                                commercial loans; and
                            ``(v) the terms of which may permit the 
                        deferral of principal or interest payments 
                        otherwise due under such terms; and
                    ``(B) includes a loan to a microenterprise 
                intermediary the proceeds of which will be used by the 
                intermediary for making loans described in subparagraph 
                (A).
    ``(d) Criteria for Microenterprise Loans.--
            ``(1) In general.--A microenterprise loan meets the 
        requirements of this subsection if the loan is made in 
        accordance with the following criteria:
                    ``(A) In considering any loan to a microenterprise, 
                the lender takes into account--
                            ``(i) the creditworthiness of any person 
                        who controls the microenterprise in lieu of the 
                        creditworthiness of the enterprise;
                            ``(ii) in the case of a microenterprise 
                        which is a startup business, whether the 
                        microenterprise is soundly conceived; and
                            ``(iii) the need of the microenterprise for 
                        expansion capital.
                    ``(B) The lender accepts as collateral for the loan 
                a security interest in any personal property of any 
                person who controls the microenterprise which consists 
                of consumer or household goods.
                    ``(C) The lender does not require collateral or a 
                secured interest for more than 50 percent of the face 
                amount of the loan.
                    ``(D) The loans are made in amounts not less than 
                $100 and not more than $10,000 to persons who would not 
                otherwise qualify for a commercial loan.
                    ``(E) The lender provides technical assistance, 
                training, and counseling in business practices, such as 
                accounting, marketing, management, sales, financial 
                practices, and general business practices, and closely 
                monitors the microenterprise during the period the loan 
                is outstanding, including the enterprise's loan 
                repayment performance.
            ``(2) Lender defined.--For purposes of paragraph (1), the 
        term `lender' means--
                    ``(A) in the case of a microenterprise loan by a 
                regulated financial institution to a microenterprise, 
                the regulated financial institution; and
                    ``(B) in the case of a microenterprise loan by a 
                microenterprise intermediary to a microenterprise, the 
                microenterprise intermediary.''.

SEC. 21004. TREATMENT OF MICROENTERPRISE LOANS OF SAVINGS ASSOCIATIONS 
              AS QUALIFIED THRIFT INVESTMENTS.

    (a) In General.--Section 10(m)(4)(C)(ii) of the Home Owners' Loan 
Act (12 U.S.C. 1467a(m)(4)(C)(ii)) is amended by adding at the end the 
following new subclause:
                                    ``(VII) The aggregate amount of 
                                microenterprise loans held by the 
                                savings association.''.
    (b) Microenterprise Loan Defined.--Section 10(m)(4) of the Home 
Owners' Loan Act (12 U.S.C. 1467a(m)(4)) is amended by adding at the 
end the following new subparagraph:
                    ``(D) Microenterprise loan.--For purposes of this 
                paragraph, the term `microenterprise loan'--
                            ``(i) means a loan--
                                    ``(I) to a commercial enterprise 
                                with 5 or fewer employees, 1 or more of 
                                whom own the enterprise;
                                    ``(II) in amounts not less than 
                                $100 and not more than $10,000; and
                                    ``(III) the interest rate on which 
                                is comparable to the interest rate 
                                charged on secured commercial loans 
                                offered by the savings association to 
                                the association's most preferred 
                                commercial customers;
                                    ``(IV) which is not secured by 
                                collateral or is secured by collateral 
                                the value of which, as a percentage of 
                                the amount of the loan, is 
                                substantially less than the percentage 
                                generally required by the institution 
                                for commercial loans; and
                                    ``(V) the terms of which may permit 
                                the deferral of principal or interest 
                                payments otherwise due under such 
                                terms;
                            ``(ii) includes a loan to a microenterprise 
                        intermediary the proceeds of which will be used 
                        by the intermediary for making loans described 
                        in clause (i); and
                            ``(iii) does not include--
                                    ``(I) any loan to a microenterprise 
                                which does not meet the requirements of 
                                paragraph (8); or
                                    ``(II) any loan to a 
                                microenterprise intermediary which does 
                                not agree to use the proceeds of the 
                                loan to make microenterprise loans in 
                                accordance with the requirements of 
                                paragraph (8).''.
    (c) Criteria for Microenterprise Loans.--Section 10(m) of the Home 
Owners' Loan Act (12 U.S.C. 1467a(m)) is amended by adding at the end 
the following new paragraph:
            ``(8) Criteria for microenterprise loans.--
                    ``(A) In general.--A microenterprise loan meets the 
                requirements of this paragraph only if the savings 
                association makes the microenterprise loan, or the 
                microenterprise intermediary which receives a loan from 
                the association, agrees to use the proceeds of the loan 
                to make microenterprise loans in accordance with the 
                following criteria:
                            ``(i) In considering any loan to a 
                        microenterprise, the lender takes into 
                        account--
                                    ``(I) the creditworthiness of any 
                                person who controls the microenterprise 
                                in lieu of the creditworthiness of the 
                                enterprise;
                                    ``(II) in the case of a 
                                microenterprise which is a startup 
                                business, whether the microenterprise 
                                is soundly conceived; and
                                    ``(III) the need of the 
                                microenterprise for expansion capital.
                            ``(ii) The lender accepts as collateral for 
                        the loan a security interest in any personal 
                        property of any person who controls the 
                        microenterprise which consists of consumer or 
                        household goods.
                            ``(iii) The lender does not require 
                        collateral or a secured interest for more than 
                        50 percent of the face amount of the loan.
                            ``(iv) The loans are made in amounts not 
                        less than $100 and not more than $10,000 to 
                        persons who would not otherwise qualify for a 
                        commercial loan.
                            ``(v) The lender provides technical 
                        assistance, training, and counseling in 
                        business practices, such as accounting, 
                        marketing, management, financial practices, and 
                        general business practices and sales, to the 
                        microenterprise in connection with the loan and 
                        closely monitors the microenterprise, including 
                        the enterprise's loan repayment performance.
                    ``(B) Lender defined.--For purposes of subparagraph 
                (A), the term `lender' means--
                            ``(i) in the case of a microenterprise loan 
                        by a savings association to a microenterprise, 
                        the savings association; and
                            ``(ii) in the case of a microenterprise 
                        loan by a microenterprise intermediary to a 
                        microenterprise, the microenterprise 
                        intermediary.''.

SEC. 21005. USE OF CDBG ASSISTANCE FOR ADMINISTRATIVE COSTS OF ENTITIES 
              ASSISTING MICROENTERPRISES.

    Section 105(a)(23) of the Housing and Community Development Act of 
1974 (42 U.S.C. 5305(a)(23)) is amended by adding at the end the 
following flush material:
        ``assistance provided to such entities under this paragraph may 
        be used for reasonable administrative and operating costs of 
        such entities related to facilitating economic development 
        through activities under subparagraphs (A) through (C);''.

SEC. 21006. ESTABLISHMENT OF MICROENTERPRISE DIVISION IN EACH FEDERAL 
              BANKING AGENCY.

    (a) In General.--Each Federal banking agency (as defined in section 
3(z) of the Federal Deposit Insurance Act) shall establish a division 
to be known as the ``Microenterprise Technical and Operations Office'' 
to promote microenterprises by offering technical assistance, training, 
outreach, and other support to groups and individuals engaged in, or 
desiring to establish, a microenterprise or an institution which offers 
credit or financial services to microenterprises.
    (b) Duties of Microenterprise Division.--The Microenterprise 
Technical and Operations Office of each Federal banking agency shall--
            (1) facilitate the creation and financing of 
        microenterprises by--
                    (A) collecting information relating to 
                microenterprises, including the ownership 
                characteristics of microenterprises and the performance 
                of microenterprises by industry;
                    (B) providing such information without charge to 
                interested persons; and
                    (C) generally serving as a clearinghouse for 
                information relating to microenterprises; and
            (2) monitor and provide assistance to the microenterprise 
        divisions established pursuant to section 34 of the Federal 
        Deposit Insurance Act.
    (a) Microenterprise Defined.--As used in this section, the term 
``microenterprise'' means any commercial enterprise with 5 or fewer 
employees, 1 or more of whom own the enterprise.

SEC. 21007. STUDY.

    (a) Availability of Credit for Small Businesses Which Are Larger 
Than Microenterprises.--The Financial Institutions Examination Council 
shall conduct a study before the end of the 2-year period beginning on 
the date of the enactment of this subtitle, based on the agency's 
experience in administering the microenterprise loan provisions of this 
subtitle, and the amendments made by this subtitle, on the best means 
to make credit available for small businesses which--
            (1) do not qualify for microenterprise loans or need credit 
        in larger amounts than is available through microenterprise 
        loans; and
            (2) need credit in smaller amounts than is generally 
        available from financial institutions or the Small Business 
        Administration.
    (b) Recommendations and Report.--The Financial Institutions 
Examination Council shall submit a report to the Congress before the 
end of the 2-year period referred to in subsection (a) containing the 
findings and conclusions of the agency in connection with the study 
conducted pursuant to subsection (a) and such recommendations for 
legislative and administrative action as the agency may determine to be 
appropriate.

 Subtitle B--Commission on the Advancement of Women in the Science and 
                        Engineering Work Forces

SEC. 22001. FINDINGS.

    The Congress finds that--
            (1) despite a consistently high presence of women in the 
        professional and total work forces of the United States, women 
        continue to be underrepresented in the science and engineering 
        work forces;
            (2) women scientists and engineers have higher rates of 
        unemployment and underemployment than their male counterparts, 
        although the number of women receiving degrees in scientific 
        and engineering disciplines has increased since 1981;
            (3) artificial barriers exist in the recruitment, 
        retention, and advancement of women in the science and 
        engineering work forces;
            (4) academia, industry, and government are increasingly 
        aware of the necessity of and the advantages derived from 
        diverse science and engineering work forces;
            (5) initiatives of the White House Task Force on Women, 
        Minorities, and the Handicapped in Science and Technology and 
        of the Federal Coordinating Council on Science, Engineering, 
        and Technology have been instrumental in raising public 
        awareness of--
                    (A) the underrepresentation of women in the science 
                and engineering work forces; and
                    (B) the desirability of eliminating artificial 
                barriers to the recruitment, retention, and advancement 
                of women in such work forces; and
            (6) the establishment of a commission to examine issues 
        raised by these initiatives would help to--
                    (A) focus greater attention on the importance of 
                eliminating artificial barriers to the recruitment, 
                retention, and advancement of women in the science and 
                engineering work forces and in all employment sectors 
                of the United States;
                    (B) promote work force diversity; and
                    (C) encourage the replication of successful 
                recruitment and retention programs by universities, 
                corporations, and Federal agencies having difficulties 
                in employing women scientists and engineers.

SEC. 22002. ESTABLISHMENT.

    There is established a commission to be known as the ``Commission 
on the Advancement of Women in the Science and Engineering Work 
Forces'' (hereinafter in this subtitle referred to as the 
``Commission'').

SEC. 22003. DUTY OF COMMISSION.

    The Commission shall conduct a study to--
            (1) identify the number of women in the United States in 
        the science and engineering work forces, and the specific types 
        of occupations in such workforces in which women scientists and 
        engineers are underrepresented;
            (2) examine the preparedness of women to--
                    (A) pursue careers in the science and engineering 
                work forces; and
                    (B) advance to positions of greater responsibility 
                within academia, industry, and government;
            (3) describe the practices and policies of employers and 
        labor unions relating to the recruitment, retention, and 
        advancement of women scientists and engineers;
            (4) identify the opportunities for, and artificial barriers 
        to, the recruitment, retention, and advancement of women 
        scientists and engineers in academia, industry, and government;
            (5) describe the employment situations in which the 
        recruitment, retention, and advancement of women scientists and 
        engineers are comparable to their male counterparts, and 
        identify those situations in which such comparability does not 
        exist;
            (6) compile a synthesis of available research on practices, 
        policies, and programs that have successfully led to the 
        recruitment, retention, and advancement of women in the science 
        and engineering work forces, including training programs, 
        rotational assignments, developmental programs, reward 
        programs, employee benefit structures, and family leave 
        policies;
            (7) examine such other issues and information relating to 
        the advancement of women in the science and engineering work 
        forces as determined by the Commission to be appropriate; and
            (8) issue recommendations that government (including 
        Congress and appropriate Federal agencies), academia, and 
        private industry can follow to assist in the recruitment, 
        retention, and advancement of women in science and engineering.

SEC. 22004. MEMBERSHIP.

    (a) Number and Appointment.--The Commission shall be composed of 18 
members as follows:
            (1) 5 members appointed by the President.
            (2) 3 members appointed jointly by the Speaker of the House 
        of Representatives and the majority leader of the Senate.
            (3) 1 member appointed by the majority leader of the House 
        of Representatives.
            (4) 1 member appointed by the minority leader of the House 
        of Representatives.
            (5) 1 member appointed by the majority leader of the 
        Senate.
            (6) 1 member appointed by the minority leader of the 
        Senate.
            (7) 2 Members of the House of Representatives, appointed 
        jointly by the majority leader and the minority leader of the 
        House of Representatives.
            (8) 2 Senators appointed jointly by the majority leader and 
        the minority leader of the Senate.
            (9) The Director of the Office of Science and Technology 
        Policy.
    (b) Additional Qualifications.--Initial appointments shall be made 
under subsection (a) not later than 180 days after the date of the 
enactment of this subtitle. In making each appointment under subsection 
(a), the appointing authority shall consider (among other factors) 
whether the individual--
            (1) is a member of an organization representing women and 
        minorities;
            (2) holds executive management or senior decision-making 
        positions in any business entity; and
            (3) possesses academic expertise or other recognized 
        abilities relating to employment and employment discrimination 
        issues.
    (c) Political Affiliation.--Not more than \1/2\ of the members may 
be of the same political party.
    (d) Continuation of Membership.--If a member was appointed to the 
Commission because the member was an officer or employee of any 
government and later ceases to be such an officer or employee, that 
member may continue as a member of the Commission for not longer than 
the 60-day period beginning on the date the member ceases to be such an 
officer or employee.
    (e) Terms.--
            (1) In general.--Each member shall be appointed for the 
        life of the Commission.
            (2) Vacancies.--A vacancy in the Commission shall be filled 
        in the manner in which the original appointment was made.
    (f) Basic Pay.--
            (1) Rates of pay.--Except as provided in paragraph (2), 
        each member of the Commission shall receive compensation at the 
        daily equivalent of the maximum rate of pay payable under 
        section 5376 of title 5, United States Code, for each day the 
        member is engaged in the performance of duties for the 
        Commission, including attendance at meetings and conferences of 
        the Commission, and travel to conduct the duties of the 
        Commission.
            (2) Prohibition of compensation of federal employees.--
        Members of the Commission who are full-time officers or 
        employees of the United States or Members of Congress may not 
        receive additional pay, allowances, or benefits by reason of 
        their service on the Commission.
    (g) Travel Expenses.--Each member shall receive travel expenses, 
including per diem in lieu of subsistence, in accordance with sections 
5702 and 5703 of title 5, United States Code.
    (h) Quorum.--A majority of the members of the Commission shall 
constitute a quorum for the transaction of business.
    (i) Chairperson.--The Director of the Office of Science and 
Technology Policy shall serve as the Chairperson of the Commission.
    (j) Meetings.--
            (1) Meetings prior to completion of report.--The Commission 
        shall meet not fewer than 5 times in connection with and 
        pending the completion of the reports described in subsections 
        (a) and (b) of section 22007. The Commission shall hold 
        additional meetings for such purpose if the Chairperson or a 
        majority of the members of the Commission requests the 
        additional meetings in writing.
            (2) Meetings after completion of report.--The Commission 
        shall meet at least once, but not more than twice after the 
        completion of the report described in section 22007(b), in 
        connection with and pending completion of the report required 
        by section 22007(c).
    (k) Employment Status.--A member of the Commission, who is not 
otherwise an officer or employee of the Federal Government, shall not 
be deemed to be an employee of the Federal Government except for the 
purposes of--
            (1) the tort claims provisions of chapter 171 of title 28, 
        United States Code; and
            (2) subchapter I of chapter 81 of title 5, United States 
        Code, relating to compensation for work injuries.

SEC. 22005. DIRECTOR AND STAFF OF COMMISSION; EXPERTS AND CONSULTANTS.

    (a) Director.--The Commission shall have a Director who shall be 
appointed by the Chairperson. The Director shall be paid at a rate not 
to exceed the maximum annual rate of basic pay payable under section 
5376 of title 5, United States Code.
    (b) Staff.--Subject to rules prescribed by the Commission, the 
Chairperson may appoint and fix the pay of additional personnel as the 
Chairperson considers appropriate.
    (c) Applicability of Certain Civil Service Laws.--The Director and 
staff of the Commission may be appointed without regard to the 
provisions of title 5, United States Code, governing appointments in 
the competitive service, and may be paid without regard to the 
provisions of chapter 51 and subchapter III of chapter 53 of that title 
relating to classification and General Schedule pay rates, except that 
an individual so appointed may not receive pay in excess of the maximum 
annual rate of basic pay payable under section 5376 of title 5, United 
States Code.
    (d) Experts and Consultants.--The Commission may procure temporary 
and intermittent services under section 3109(b) of title 5, United 
States Code, at rates for individuals not to exceed the maximum annual 
rate of basic pay payable under section 5376 of title 5, United States 
Code.
    (e) Staff of Federal Agencies.--Upon request of the Commission, the 
head of any Federal department or agency may detail, on a reimbursable 
basis, any of the personnel of that department or agency to the 
Commission to assist it in carrying out its duties under this subtitle.

SEC. 22006. POWERS OF COMMISSION.

    (a) Hearings and Sessions.--The Commission may, for the purpose of 
carrying out this subtitle, hold hearings, sit and act at times and 
places, take testimony, and receive evidence as the Commission 
considers appropriate. The Commission may administer oaths or 
affirmations to witnesses appearing before it.
    (b) Powers of Members and Agents.--Any member or agent of the 
Commission may, if authorized by the Commission, take any action which 
the Commission is authorized to take by this section.
    (c) Obtaining Official Data.--The Commission may secure directly 
from any department or agency of the United States information 
necessary to enable it to carry out this subtitle. Upon request of the 
Chairperson of the Commission, the head of that department or agency 
shall furnish that information to the Commission.
    (d) Gifts, Bequests, and Devises.--The Commission may accept, use, 
and dispose of gifts, bequests, or devises of services or property, 
both real and personal, for the purpose of aiding or facilitating the 
work of the Commission. Gifts, bequests, or devises of money and 
proceeds from sales of other property received as gifts, bequests, or 
devises shall be deposited in the Treasury and shall be available for 
disbursement upon order of the Commission.
    (e) Mails.--The Commission may use the United States mails in the 
same manner and under the same conditions as other departments and 
agencies of the United States.
    (f) Administrative Support Services.--Upon the request of the 
Commission, the Administrator of General Services shall provide to the 
Commission, on a reimbursable basis, the administrative support 
services necessary for the Commission to carry out its responsibilities 
under this subtitle.
    (g) Contract Authority.--To the extent provided in advance in 
appropriations Acts, the Commission may contract with and compensate 
government and private agencies or persons for the purpose of 
conducting research or surveys necessary to enable the Commission to 
carry out its duties under this subtitle.

SEC. 22007. REPORTS.

    (a) Status Report.--Not later than 1 year after the date on which 
the initial appointments under section 22004(a) are completed, the 
Commission shall submit to the President and the Congress a written 
report describing the current activities and findings of the Commission 
and the direction of the Commission.
    (b) Recommendation Report.--Not later than 18 months after the date 
on which the initial appointments under section 22004(a) are completed, 
the Commission shall submit to the President and the Congress a written 
report containing--
            (1) the findings and conclusions of the Commission 
        resulting from the study conducted under section 22003; and
            (2) recommendations, including specific proposed 
        legislation and administrative action, based on the findings 
        and conclusions referred to in paragraph (1).
    (c) Follow-Up Report.--After submission of the report required by 
subsection (b) and before the termination of the Commission, the 
Commission shall submit to the President and to the Congress a written 
report--
            (1) identifying which of the recommendations included in 
        such report have been implemented; and
            (2) containing any additional information the Commission 
        considers to be appropriate.

SEC. 22008. CONSTRUCTION; USE OF INFORMATION OBTAINED.

    (a) In General.--Nothing in this subtitle shall be construed to 
require any non-Federal entity (such as a business, college, or 
university, foundation, or research organization) to provide 
information to the Commission concerning such entity's personnel 
policies, including, but not limited to, salaries and benefits, 
promotion criteria, and affirmative action plans.
    (b) Use of Information Obtained.--No information obtained from any 
entity by the Commission may be used in connection with any employment 
related litigation.

SEC. 22009. TERMINATION.

    The Commission shall terminate 1 year after submitting the report 
required by section 22007(b).

SEC. 22010. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated for fiscal years 1997, 
1998, and 1999 such sums as may be necessary to carry out this 
subtitle.

               Subtitle C--Equal Surety Bond Opportunity

SEC. 23001. EQUAL SURETY BOND OPPORTUNITY REQUIREMENTS.

    (a) Activities Constituting Discrimination.--It shall be unlawful 
for any surety to discriminate against any applicant, with respect to 
any aspect of a surety bond transaction--
            (1) on the basis of race, color, religion, national origin, 
        sex, marital status, sexual orientation, disability, or age (if 
        the applicant has the capacity to contract);
            (2) because the applicant has in good faith exercised any 
        right under this subtitle;
            (3) because the applicant previously obtained a bond 
        through an individual or personal surety; or
            (4) because the applicant previously obtained a bond 
        through--
                    (A) any bonding assistance program expressly 
                authorized by law;
                    (B) any bonding assistance program administered by 
                a nonprofit organization for its members or an 
                economically disadvantaged class of persons; or
                    (C) any special purpose bonding program offered by 
                a profit-making organization to meet special needs.
    (b) Activities Not Constituting Discrimination.--It shall not 
constitute discrimination for purposes of this subtitle for a surety--
            (1) to make an inquiry of marital status if such inquiry is 
        for the purpose of ascertaining the surety's rights and 
        remedies applicable to the granting of a bond and not to 
        discriminate in a determination of bondability;
            (2) to make an inquiry of the applicant's age if such 
        inquiry is for the purpose of determining the amount and 
        probable continuance of bondability; or
            (3) to make an inquiry as to where the applicant has 
        previously obtained a bond, in order to determine bonding 
        history, or other pertinent element of bondability, except that 
        an applicant may not be assigned a negative factor or value 
        because the applicant previously obtained a bond through--
                    (A) an individual or personal surety;
                    (B) a bonding assistance program expressly 
                authorized by law;
                    (C) any bonding program administered by a nonprofit 
                organization for its members or an economically 
                disadvantaged class of persons; or
                    (D) any special purpose bonding program offered by 
                a profit-making organization to meet special needs.
    (c) Additional Activities Not Constituting Discrimination.--It is 
not a violation of this subtitle for a surety to refuse to issue a bond 
pursuant to--
            (1) any bonding assistance program authorized by law for an 
        economically disadvantaged class of persons;
            (2) any bonding assistance program administered by a 
        nonprofit organization for its members or an economically 
        disadvantaged class of persons; or
            (3) any special purpose bonding program offered by a 
        profit-making organization to meet special needs;
if such refusal is required by or made pursuant to such program.
    (d) Reasons for Adverse Action; Procedure Applicable; Definition.--
            (1) Notice required.--
                    (A) In general.--Except as provided in subparagraph 
                (B), any surety approved under section 9304 of title 
                31, United States Code, shall notify an applicant of 
                the surety's action on a completed application before 
                the end of the 10-day period beginning on the date the 
                application is filed with the surety.
                    (B) Extension.--The 10-day period referred to in 
                subparagraph (A) may be extended an additional 10 days 
                if the surety has not issued a bond to the applicant 
                during the 1-year period ending on the date the 
                application is filed with the surety.
            (2) Statement of reasons.--
                    (A) In general.--Each applicant against whom 
                adverse action is taken shall be entitled to a 
                statement of reasons for such action from the surety.
                    (B) Acceptable forms of statement.--A surety 
                satisfies the requirement established under 
                subparagraph (A) by--
                            (i) providing a statement of reasons in 
                        writing as a matter of course to applicants 
                        against whom adverse action is taken; or
                            (ii) giving written notification of adverse 
                        action which discloses--
                                    (I) the applicant's right to a 
                                statement of reasons within 30 days 
                                after receipt by the surety of a 
                                request made within 60 days after such 
                                notification; and
                                    (II) the identity of the person or 
                                office from which such statement may be 
                                obtained.
                    (C) Oral statement permitted.--Such statement may 
                be given orally if the written notification advises the 
                applicant of the applicant's right to have the 
                statement of reasons confirmed in writing on written 
                request.
            (3) Specificity of reasons.--A statement of reasons meets 
        the requirements of this subtitle only if it contains specific 
        reasons for the adverse action taken.
            (4) Applicability in case of 3d party applications.--In the 
        case of a request to a surety by a third party to issue a bond 
        directly or indirectly to an applicant, the notification and 
        statement of reasons required by this section may be made 
        directly by such surety, or indirectly through the third party, 
        if the identity of the surety is disclosed to the applicant.
            (5) Applicability in case of sureties which accept few 
        applications.--The requirements of paragraph (2), (3), or (4) 
        may be satisfied by oral statements or notifications in the 
        case of any surety who did not act on more than 100 
        applications during the calendar year in which the adverse 
        action is taken.
    (e) Adverse Action Defined.--For purposes of this subtitle, the 
term ``adverse action''--
            (1) means a denial of a bond, a change in the terms of an 
        existing bonding arrangement, or a refusal to issue a bond in 
        the amount or on substantially the terms requested; and
            (2) does not include any refusal to issue an additional 
        bond under an existing bonding arrangement where the applicant 
        is in default, or where such additional bond would exceed a 
        previously established bonding limit.

SEC. 23002. CIVIL LIABILITY.

    (a) Damages.--Any surety who fails to comply with section 23001(a) 
shall be liable to the aggrieved applicant for--
            (1) any actual damage sustained by such applicant 
        (individually or as a member of a class); and
            (2) in the case of any successful action under this 
        section, the costs of the action, together with reasonable 
        attorney's fees as determined by the court.
    (b) Equitable Relief.--Upon application by an aggrieved applicant, 
a court of competent jurisdiction may enjoin a surety from violating 
the requirements of this subtitle or grant such other equitable relief 
as the court determines to be appropriate to enforce such requirements.
    (c) Jurisdiction.--Any action under this section may be brought in 
any United States district court, or in any other court of competent 
jurisdiction, within 1 year after the date of the occurrence of the 
violation involved.

SEC. 23003. ADMINISTRATIVE ENFORCEMENT.

    (a) In General.--A company may not be approved as a surety by the 
Secretary of the Treasury under section 9304 of title 31, United States 
Code, or provide any surety bond pursuant to such section unless such 
company maintains full compliance with the requirements of this 
subtitle.
    (b) Requirements Relating to Enforceability of Act.--
            (1) Signed statement of compliance with application.--
        Section 9305(a) of title 31, United States Code, is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (1);
                    (B) by striking the period at the end of paragraph 
                (2) and inserting ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(3) a statement of compliance with the Economic Equity 
        Act of 1996 which is signed under penalty of perjury by the 
        president and the secretary of the corporation.''.
            (2) Compliance as a condition for approval of 
        application.--Section 9305(b) of title 31, 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) the corporation is in full compliance with the 
        Economic Equity Act of 1996.''.
            (3) Signed statement of compliance with quarterly 
        reports.--Section 9305(c) of title 31, United States Code, is 
        amended by inserting ``and a statement of compliance with the 
        Economic Equity Act of 1996'' before the period.
            (4) Enforcement authority of secretary of the treasury.--
        Section 9305(d) of title 31, United States Code, is amended--
                    (A) in paragraph (1), by inserting ``or the 
                provisions of the Economic Equity Act of 1996'' before 
                the semicolon;
                    (B) by striking ``and'' at the end of paragraph 
                (2);
                    (C) by striking the period at the end of paragraph 
                (3) and inserting ``; and''; and
                    (D) by adding at the end the following new 
                paragraph:
            ``(4) may, after the end of the 1-year period beginning on 
        the effective date of any revocation under paragraph (1) of the 
        authority of a surety corporation for noncompliance with the 
        Economic Equity Act of 1996, reauthorize such corporation to 
        provide surety bonds under section 9304.''.
            (5) Revocation for failure to pay certain judgments.--
        Section 9305(e) of title 31, United States Code, is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (1);
                    (B) by redesignating paragraph (2) as paragraph 
                (3); and
                    (C) by inserting after paragraph (1) the following 
                new paragraph:
            ``(2) the corporation does not pay a final judgment or 
        order against the corporation for noncompliance with the 
        Economic Equity Act of 1996 or fails to comply with any order 
        under section 23002(c) of such Act; and''.
    (c) Technical and Conforming Amendment.--Section 9304(a)(3) of 
title 31, United States Code, is amended by inserting ``and section 
23003(a) of the Economic Equity Act of 1996'' before the period.
    (d) Regulations.--
            (1) In general.--The Secretary of the Treasury shall 
        prescribe such regulations as may be necessary to carry out the 
        purposes of this subtitle.
            (2) Initial regulations.--The initial regulations 
        prescribed pursuant to paragraph (1) shall take effect at the 
        earliest practicable date after the date of the enactment of 
        this subtitle and not later than the end of the 1-year period 
        beginning on such date of enactment.

SEC. 23004. EFFECTIVE DATE.

    Sections 23001(d) and 23003(a) shall take effect on the earlier 
of--
            (1) the effective date of the initial regulations 
        prescribed pursuant to section 23003(d); or
            (2) the end of the 1-year period beginning on the date of 
        the enactment of this subtitle.

                 Subtitle D--Self-Sufficiency Standard

SEC. 24001. FINDINGS AND PURPOSE.

    (a) Findings.--The Congress finds that--
            (1) the principle objective of programs under part A of 
        title II of the Job Training Partnership Act (29 U.S.C. 1601 et 
        seq.) is to move economically disadvantaged adults into 
        permanent, unsubsidized employment that pays a wage that 
        enables such adults to achieve long-term economic self-
        sufficiency for themselves and their dependents;
            (2) current measures of success of such programs do not 
        accurately assess the degree to which participants achieve 
        long-term economic self-sufficiency;
            (3) in order to ensure that such programs result in long-
        term economic self-sufficiency for participants, performance 
        standards must focus both on the wage and benefits a 
        participant receives relative to the participant's family size 
        and needs, and on the duration and stability of the 
        participant's employment; and
            (4) the wage and benefits needed to achieve long-term 
        economic self-sufficiency will vary by family size and local 
        market conditions governing prices of essential goods and 
        services.
    (b) Purposes.--The purposes of this subtitle are--
            (1) to provide for the establishment and use of local 
        economic self-sufficiency standards tables to accurately 
        measure the effectiveness of adult training programs carried 
        out under part A of title II of the Job Training Partnership 
        Act (29 U.S.C. 1601 et seq.); and
            (2) to provide grants to States to develop demonstration 
        and exemplary programs to increase the number of participants 
        under such programs who are trained and placed in jobs that 
        yield long-term economic self-sufficiency using the local 
        economic self-sufficiency standards tables.

SEC. 24002. DEFINITION OF ECONOMIC SELF-SUFFICIENCY.

    Section 4 of the Job Training Partnership Act (29 U.S.C. 1503) is 
amended by adding at the end the following new paragraph:
            ``(41) The term `economic self-sufficiency' means the 
        ability of an individual to meet the following basic needs for 
        the individual and such individual's family:
                    ``(A) Housing.
                    ``(B) Child care.
                    ``(C) Adult dependent care.
                    ``(D) Food.
                    ``(E) Transportation.
                    ``(F) Health care.
                    ``(G) Work-related expenses.''.

SEC. 24003. ESTABLISHMENT OF ECONOMIC SELF-SUFFICIENCY STANDARDS FOR 
              ADULT TRAINING PROGRAMS.

    (a) In General.--Section 106(b) of such Act (29 U.S.C. 1516(b)) is 
amended by adding at the end the following new paragraph:
            ``(9) Economic self-sufficiency standards for adult 
        programs.--
                    ``(A) Formula developed by the secretary.--(i)(I) 
                Not later than 6 months after the date of the enactment 
                of this paragraph, the Secretary shall develop and 
                publish in the Federal Register a proposed formula 
                which measures the minimum amount of wages and 
                employment benefits that a participant enrolled in a 
                program under part A of title II should receive after 
                termination from such program to ensure the long-term 
                economic self-sufficiency of such participant.
                    ``(II) The Secretary shall provide for public 
                review and comment of the proposed formula described in 
                subclause (I) within the 60-day period beginning on the 
                date such formula is published in the Federal Register. 
                Not later than 4 months after the end of such 60-day 
                period, the Secretary shall develop and publish in the 
                Federal Register a final formula.
                    ``(ii) The Secretary shall base the formula 
                described in clause (i) on appropriate factors, which 
                shall include--
                            ``(I) the participant's family size and 
                        composition, including the number and age of 
                        dependent adults and children;
                            ``(II) 100 percent of the average housing 
                        costs, which shall be based on the fair market 
                        rental in effect for the market area in which 
                        the participant resides, as established by the 
                        Secretary of Housing and Urban Development 
                        pursuant to section 8(c) of the United States 
                        Housing Act of 1937;
                            ``(III) 100 percent of the average child 
                        care costs (differentiated by the age of each 
                        child), which may be based on the actual cost 
                        of such care established under section 
                        402(g)(1)(C)(i)(I) the Social Security Act or 
                        the applicable local market rate established 
                        under clause (ii) of such section;
                            ``(IV) 100 percent of the average adult 
                        dependent care costs, which may be based on 
                        local surveys or the local average of such 
                        costs;
                            ``(V) 100 percent of the average health 
                        care costs, which shall include costs incurred 
                        for full family health care coverage (including 
                        premiums, deductibles, and co-payments), and 
                        which may be based on local surveys or the 
                        local average of such costs;
                            ``(VI) 100 percent of the average 
                        transportation costs, which may be based on 
                        local surveys or the local average of such 
                        costs;
                            ``(VII) 100 percent of the food costs, 
                        which shall be equal to \1/3\ of the official 
                        poverty line (as defined by the Office of 
                        Management and Budget, and revised annually in 
                        accordance with section 673(2) of the Omnibus 
                        Budget Reconciliation Act of 1981 (42 U.S.C. 
                        9902(2)); and
                            ``(VIII) 100 percent of the average work-
                        related costs, which shall include the cost of 
                        uniforms, tools, and other appropriate work-
                        related costs.
                    ``(iii) The Secretary shall also designate, from 
                among the needs identified through the needs assessment 
                conducted under this Act, those needs which shall be 
                used by a service delivery area to develop the summary 
                needs table under section 104(b)(14)(B).
                    ``(B) Local economic self-sufficiency standards 
                tables developed by service delivery areas.--(i) Not 
                later than 12 months after the date on which the 
                Secretary publishes the final formula in the Federal 
                Register under subparagraph (A)(i)(II), each service 
                delivery area shall, in accordance with such formula, 
                develop and submit to the Governor a local economic 
                self-sufficiency standards table which measures the 
                minimum amount of wages and employment benefits that a 
                participant enrolled in a program under part A of title 
                II in such area should receive after termination from 
                such program to ensure the long-term economic self-
                sufficiency of such participant.
                    ``(ii) The Secretary shall provide technical 
                assistance to States and service delivery areas for the 
                purpose of assisting such service delivery areas to 
                develop the local economic self-sufficiency standards 
                tables under clause (i).
                    ``(C) Approval and disapproval of table.--(i) Not 
                later than 30 days after the date on which the Governor 
                receives a local economic self-sufficiency standards 
                table submitted by a service delivery area under 
                subparagraph (B)(i), the Governor shall review such 
                table and approve or disapprove such table in 
                accordance with this subparagraph.
                    ``(ii) The Governor shall approve each local 
                economic self-sufficiency standards table only if--
                            ``(I) such table accounts for the full 
                        range of variations of family size and 
                        composition described in subclause (I) of 
                        subparagraph (A)(ii);
                            ``(II) such table accounts for 100 percent 
                        of each of the costs described in subclauses 
                        (II) through (VIII) of subparagraph (A)(ii);
                            ``(III) the methodology used to determine 
                        such costs accurately represent such costs; and
                            ``(IV) such table complies with all other 
                        provisions of the formula developed by the 
                        Secretary under subparagraph (A).
                    ``(iii) If the Governor determines that the table 
                does not meet the requirements of clause (ii) or is 
                otherwise incomplete or unsatisfactory, the Governor 
                shall, before the end of the period referred to in 
                clause (i)--
                            ``(I) notify the service delivery area of 
                        the reasons for the failure to approve the 
                        table;
                            ``(II) notify the service delivery area 
                        that the table may be resubmitted during the 
                        period referred to in subclause (III); and
                            ``(III) permit the service delivery area to 
                        resubmit a corrected or amended table during 
                        the 30-day period beginning on notification 
                        under this clause.
                    ``(iv) The Governor shall review and approve or 
                disapprove any table resubmitted under clause (iii) 
                beginning before the expiration of the 30-day period 
                beginning upon such resubmission.
                    ``(D) Annual updates.--Each service delivery area 
                shall update the local economic self-sufficiency 
                standards table developed by such area on an annual 
                basis and shall submit to the Governor a description of 
                the updated version of such table.''.
    (b) Conforming Amendment.--Paragraph (3) of section 106(b) of such 
Act (29 U.S.C. 1516(b)(3)) is amended by striking ``The Secretary'' and 
inserting ``In addition to the standards under local economic self-
sufficiency standards tables developed pursuant to paragraph (9), the 
Secretary''.

SEC. 24004. PROHIBITION OF INCENTIVE GRANTS TO SERVICE DELIVERY AREAS 
              THAT DO NOT HAVE IN EFFECT AN APPROVED LOCAL ECONOMIC 
              SELF-SUFFICIENCY STANDARDS TABLE.

    (a) In General.--Paragraph (7) of section 106(b) of such Act (29 
U.S.C. 1516(b)(7)) is amended--
            (1) by striking ``From funds available'' and inserting 
        ``(A) Subject to subparagraph (B), from funds available'';
            (2) by redesignating clauses (i) and (ii) of subparagraph 
        (D) as subclauses (I) and (II), respectively;
            (3) by redesignating subparagraphs (A) through (E) of such 
        paragraph as clauses (i) through (v), respectively; and
            (4) by adding at the end the following new subparagraph:
            ``(B) A Governor shall not award incentive grants for 
        programs under part A of title II to service delivery areas 
        that do not have in effect a local economic self-sufficiency 
        standards table approved under paragraph (9)(C).''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect 2 years after the date of the enactment of this subtitle.

SEC. 24005. INCLUSION OF LOCAL ECONOMIC SELF-SUFFICIENCY STANDARDS 
              TABLE AND RELATED REPORTS IN JOB TRAINING PLAN.

    (a) Local Economic Self-Sufficiency Standards Table.--Subparagraph 
(B) of section 104(b)(5) of such Act (29 U.S.C. 1514(b)(5)(B)) is 
amended by inserting ``, including the local economic self-sufficiency 
standards table developed pursuant to subsection (b)(9) of such 
section'' after ``section 106''.
    (b) Annual Reports.--Subsection (b) of section 104 of such Act (29 
U.S.C. 1514(b)) is amended--
            (1) in paragraph (12), by striking ``; and'' and inserting 
        a semi-colon;
            (2) in paragraph (13), by striking the period at the end of 
        such paragraph and inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(14) procedures for the preparation and submission of an 
        annual report to the Governor, which shall include--
                    ``(A) with respect to each participant who has 
                completed training under a program carried out under 
                part A of title II in the service delivery area, 
                information relating to--
                            ``(i) the type and amount of services 
                        provided to such participant under the program;
                            ``(ii) the subsequent employment of the 
                        participant, where appropriate, including the 
                        amount of wages and employment benefits 
                        received by the participant under such 
                        employment; and
                            ``(iii) the degree of long-term economic 
                        self-sufficiency which the participant has 
                        achieved as a result of the training received 
                        by the participant under the program based upon 
                        the local economic self-sufficiency standards 
                        table; and
                    ``(B) a summary needs table which--
                            ``(i) ranks and places participants into at 
                        least 4 categories of equal size based upon the 
                        needs designated by the Secretary under section 
                        106(b)(9)(A)(iii);
                            ``(ii) includes a description of the level 
                        of measurements used to place the participants 
                        into such categories; and
                            ``(iii) includes a description of the 
                        degree to which participants in each category 
                        achieved long-term economic self-sufficiency 
                        after termination from a program under part A 
                        of title II.''.

SEC. 24006. INCLUSION OF LOCAL ECONOMIC SELF-SUFFICIENCY STANDARDS 
              TABLES AND RELATED REPORTS IN GOVERNOR'S COORDINATION AND 
              SPECIAL SERVICES PLAN.

    Subsection (b) of section 121 of such Act (29 U.S.C. 1531(b)) is 
amended--
            (1) by redesignating paragraphs (6) and (7) as paragraphs 
        (7) and (8), respectively; and
            (2) by inserting after paragraph (5) the following new 
        paragraph:
            ``(6) The plan shall include--
                    ``(A) the local economic self-sufficiency standards 
                table developed by each service delivery areas pursuant 
                to section 106(b)(9);
                    ``(B) a compilation of the reports received by the 
                Governor under section 104(b)(14); and
                    ``(C) a description of goals and objectives to 
                assist participants enrolled in programs under part A 
                of title II achieve long-term economic self-
                sufficiency.''.

SEC. 24007. DEMONSTRATION PROGRAMS TO IMPLEMENT LOCAL ECONOMIC SELF-
              SUFFICIENCY STANDARDS TABLES.

    (a) In General.--Part D of title IV of such Act (29 U.S.C. 1737 et 
seq.) is amended by adding at the end the following new section:

``SEC. 457. ECONOMIC SELF-SUFFICIENCY DEMONSTRATION GRANT PROGRAM.

    ``(a) Authorization.--
            ``(1) In general.--From funds available under this part for 
        the fiscal years 1997, 1998, and 1999, the Secretary shall use 
        $1,500,000 in each such fiscal year to provide grants to States 
        to establish and carry out demonstration and exemplary programs 
        to increase the number of participants in programs under part A 
        of title II who are trained and placed in jobs that yield long-
        term economic self-sufficiency in accordance with the local 
        economic self-sufficiency standards tables under section 
        106(b)(9).
            ``(2) Limitation.--The Secretary may provide no more than 6 
        grants in each fiscal year under paragraph (1).
    ``(b) Application.--The Secretary may provide a grant to a State 
under subsection (a) only if such State submits to the Secretary an 
application which contains such information as the Secretary may 
reasonably require.
    ``(c) Use of Funds.--
            ``(1) In general.--A State shall use amounts received from 
        a grant under subsection (a) to award grants to service 
        delivery areas and eligible service providers described in 
        paragraph (3) to develop and test strategies to train, place, 
        and retain participants in jobs that yield long-term economic 
        self-sufficiency in accordance with the local economic self-
        sufficiency standards tables under section 106(b)(9).
            ``(2) Appropriate level of services.--In providing grants 
        under paragraph (1), a State shall ensure that each service 
        delivery area or service provider provides for an appropriate 
        level of services, including supportive services, to 
        participants using the relevant local economic self-sufficiency 
        standards tables developed by the service delivery area.
            ``(3) Eligible service providers.--Eligible service 
        providers described in this paragraph are community-based 
        organizations, educational institutions, or any other service 
        providers in the State that have a demonstrated success in--
                    ``(A) providing occupational skills training to 
                participants for high-wage jobs; and
                    ``(B) ensuring that participants receive supportive 
                services in order to successfully complete such 
                training.
    ``(d) Administrative and Related Costs.--In any fiscal year in 
which a State receives amounts from a grant under subsection (a), the 
State may retain an amount not to exceed 10 percent of the grant amount 
to--
            ``(1) pay the administrative costs of programs established 
        and carried out under subsection (a);
            ``(2) facilitate the coordination of statewide approaches 
        to training and placing participants in jobs yielding long-term 
        economic self-sufficiency; and
            ``(3) provide technical assistance to service delivery 
        areas and service providers.
    ``(e) Selection.--In providing grants to States under subsection 
(a), the Secretary shall consider--
            ``(1) the extent to which the State has demonstrated that 
        the coordination of services provided under this Act with 
        services provided by agencies and organizations addressing the 
        basic needs of low-income individuals, including housing, food, 
        transportation, dependent care, and health care, has resulted 
        in the prompt and efficient delivery of services to 
        participants under this Act;
            ``(2) the extent to which the State has demonstrated its 
        capability to ensure the provision of all needed supportive 
        services to participants in any job training program carried 
        out in the State for the duration of such participants' 
        enrollment;
            ``(3) the extent of private sector involvement in the 
        development and implementation of training programs that 
        increase opportunities for participants to achieve long-term 
        economic self-sufficiency under this Act in the State;
            ``(4) the extent to which the initiatives proposed by a 
        State in its application supplement or build upon existing 
        efforts in the State to train and place individuals in jobs 
        that increase opportunities for participants to achieve long-
        term economic self-sufficiency;
            ``(5) whether the proposed amount of the grant to be 
        provided under subsection (a) is sufficient to accomplish 
        measurable goals;
            ``(6) the extent to which the State is prepared to 
        disseminate information on its demonstration training programs 
        relating to training, placement, and other services; and
            ``(7) the extent to which the State is prepared to produce 
        materials that allow for replication of such State's 
        demonstration training programs.
    ``(f) Evaluation.--The Secretary shall provide for an evaluation of 
the programs established and carried out under subsection (a), 
including evaluation of the effectiveness of such programs in--
            ``(1) assisting participants with varying needs in 
        achieving long-term economic self-sufficiency through training, 
        placement, and other services;
            ``(2) effectively implementing the use of local economic 
        self-sufficiency standards tables to increase the number of 
        participants achieving long-term economic self-sufficiency; and
            ``(3) developing and replicating approaches to assist 
        participants with varying needs in achieving long-term economic 
        self-sufficiency through training, placement, and other 
        services.''.
    (b) Conforming Amendment.--The table of contents of such Act is 
amended by inserting after the item relating to section 456 the 
following new item:

``Sec. 457. Economic self-sufficiency demonstration grant program.''.

SEC. 24008. REPORT AND RECOMMENDATIONS.

    (a) Report.--Not later than 2 years after the date on which the 
Secretary provides the 1st grant to a State under section 457(a)(1) of 
the Job Training Partnership Act and biennially thereafter, the 
Secretary of Labor shall submit to the Congress a report on--
            (1) the extent to which States, service delivery areas, and 
        other service providers have succeeded in training, placing, 
        and retaining participants enrolled in programs under part A of 
        title II of such Act in jobs yielding long-term economic self-
        sufficiency; and
            (2) the effectiveness of the demonstration programs 
        established under section 457 of such Act in developing and 
        replicating approaches to train, place, and retain participants 
        in such jobs, including a summary of activities performed by 
        grant recipients under the demonstration programs authorized 
        under such section.
    (b) Recommendations.--The report described in subsection (a) shall 
include recommendations on--
            (1) the need to continue, expand, or modify the 
        demonstration programs established under section 457 of the Job 
        Training Partnership Act;
            (2) legislative and administrative changes necessary to 
        increase opportunities for participants to achieve long-term 
        economic self-sufficiency; and
            (3) legislative and administrative action necessary to 
        institutionalize the use of local economic self-sufficiency 
        standards tables as the principal measure of performance for 
        programs carried out under part A of title II of the Job 
        Training Partnership Act (29 U.S.C. 1601 et seq.) such that--
                    (A) the basic measure of performance for such 
                programs shall be the achievement of long-term economic 
                self-sufficiency resulting from participation in the 
                program;
                    (B) placements are evaluated according to whether 
                the wages and employment benefits meet the 
                participant's particular long-term economic self-
                sufficiency needs;
                    (C) both wages and the cash value of employment 
                benefits are used to determine whether a participant 
                has achieved the self-sufficiency standard for their 
                particular family size and composition;
                    (D) in order to ensure that participants with 
                varying needs are served equitably, the placements 
                shall be equitably distributed among the categories 
                contained in the summary needs table established by the 
                service delivery area in the job training plan prepared 
                under section 104(b)(14)(B) of the Job Training 
                Partnership Act; and
                    (E) incentive grants under section 106(b)(7) of 
                such Act (29 U.S.C. 1516(b)(7)) are provided to service 
                delivery areas based primarily on the extent to which 
                such areas exceed the standards under the local 
                economic self-sufficiency standards table for such 
                areas.

                   Subtitle E--Community Reinvestment

SEC. 25001. REPORTING OF ACTUAL PERFORMANCE DATA.

    (a) In General.--The Community Reinvestment Act of 1977 (12 U.S.C. 
2901 et seq.) is amended by adding at the end the following new 
section:

``SEC. 809. REPORTING OF ACTUAL PERFORMANCE DATA.

    ``(a) Establishment Required.--The appropriate Federal financial 
supervisory agencies shall jointly develop a format for collecting data 
from regulated financial institutions, in connection with examinations 
under section 804, concerning such institutions' record of meeting the 
credit needs of their local communities, including low- and moderate-
income neighborhoods.
    ``(b) Data Required.--The data required to be collected under 
subsection (a) shall include the following:
            ``(1) Small business lending.--
                    ``(A) The aggregate number and dollar volume of 
                loans originated, with a separate breakout for 
                originations to minority-owned and women-owned 
                businesses and start-up businesses.
                    ``(B) The aggregate number and dollar volume of 
                loans originated under programs administered by the 
                Small Business Administration, with a separate break-
                out for minority-owned and women-owned businesses.
                    ``(C) The aggregate number and dollar volume of 
                small business loans originated by the financial 
                institution, compiled on the basis of the racial and 
                income characteristics in the institution's entire 
                community.
            ``(2) Community development.--
                    ``(A) The number and dollar volume of loans to 
                nonprofit child care, mental health, and literacy 
                centers and to nonprofit developers of affordable 
                housing.
                    ``(B) The financial institution's participation in 
                any community development project, including a 
                description of any partnerships developed with 
                nonprofit community organizations, that benefit the 
                low- and moderate-income residents of the institution's 
                entire community.
            ``(3) Consumer loans.--A statistical analysis of the number 
        and dollar volume of consumer loans compiled on the basis of 
        the racial and income characteristics of neighborhoods in the 
        institution's entire community.
            ``(4) Branch closures.--
                    ``(A) A compilation of the number of the 
                institution's branches and other deposit facilities in 
                neighborhoods of various racial and income 
                characteristics within the institution's community.
                    ``(B) An analysis of all openings and closings of 
                branches and other deposit facilities by the 
                institution in the past 10 years in neighborhoods of 
                various racial and income characteristics within the 
                institution's community.''.
    (b) Data Required in Public Section of Report.--Section 
807(b)(1)(A) of the Community Reinvestment Act of 1977 (12 U.S.C. 
2906(b)(1)(A)) is amended--
            (1) by striking ``and'' at the end of clause (ii);
            (2) by striking the period at the end of clause (iii) and 
        inserting ``; and''; and
            (3) by adding at the end the following new clause:
                            ``(iv) contain the data required to be 
                        collected with respect to the institution 
                        pursuant to section 809.''.

          Subtitle F--Telecommunications Economic Opportunity

SEC. 26001. FINDINGS.

    The Congress finds the following:
            (1) It is in the public interest for business enterprises 
        owned by minorities and women to participate in procurement 
        contracts of all providers of telecommunications services.
            (2) The opportunity for full participation in our free 
        enterprise system by business enterprises that are owned by 
        minorities and women is essential if this Nation is to attain 
        social and economic equality for those businesses and improve 
        the functioning of the national economy.
            (3) It is in this Nation's interest to expeditiously 
        improve the economically disadvantaged position of business 
        enterprises that are owned by minorities and women.
            (4) The position of these businesses can be improved 
        through the development by the providers of telecommunications 
        services of substantial long-range and annual goals, which are 
        supported by training and technical assistance, for the 
        purchase, to the maximum practicable extent, of technology, 
        equipment, supplies, services, material and construction from 
        minority business enterprises.
            (5) Procurement policies which include participation of 
        business enterprises that are owned by minorities and women 
        also benefit the communication industry and its consumers by 
        encouraging the expansion of the numbers of suppliers for 
        procurement, thereby encouraging competition among suppliers 
        and promoting economic efficiency in the process.

SEC. 26002. PURPOSE.

    The purposes of this subtitle are--
            (1) to encourage and foster greater economic opportunity 
        for business enterprises that are owned by minorities and 
        women;
            (2) to promote competition among suppliers to providers of 
        telecommunications services and their affiliates to enhance 
        economic efficiency in the procurement of telephone corporation 
        contracts and contracts of their State commission-regulated 
        subsidiaries and affiliates;
            (3) to clarify and expand a program for the procurement by 
        State and federally-regulated telephone companies of 
        technology, equipment, supplies, services, materials and 
        construction work from business enterprises that are owned by 
        minorities and women; and
            (4) to ensure that a fair proportion of the total 
        purchases, contracts, and subcontracts for supplies, 
        commodities, technology, property, and services offered by the 
        providers of telecommunications services and their affiliates 
        are awarded to minority and women business enterprises.

SEC. 26003. ANNUAL PLAN SUBMISSION.

    (a) Annual Plans Required.--
            (1) In general.--The Commission shall require each provider 
        of telecommunications services to submit annually a detailed 
        and verifiable plan for increasing its procurement from 
        business enterprises that are owned by minorities or women in 
        all categories of procurement in which minorities are under 
        represented.
            (2) Contents of plans.--The annual plans required by 
        paragraph (1) shall include (but not be limited to) short- and 
        long-term progressive goals and timetables, technical 
        assistance, and training and shall, in addition to goals for 
        direct contracting opportunities, include methods for 
        encouraging both prime contractors and grantees to engage 
        business enterprises that are owned by minorities and women in 
        subcontracts in all categories in which minorities are under 
        represented.
            (3) Implementation report.--Each provider of 
        telecommunications services shall furnish an annual report to 
        the Commission regarding the implementation of programs 
        established pursuant to this subtitle in such form as the 
        Commission shall require, and at such time as the Commission 
        shall annually designate.
            (4) Report to congress.--The Commission shall provide an 
        annual report to Congress, beginning in January 1996, on the 
        progress of activities undertaken by each provider of 
        telecommunications services regarding the implementation of 
        activities pursuant to this subtitle to develop business 
        enterprises that are owned by minorities or women. The report 
        shall evaluate the accomplishments under this subtitle and 
        shall recommend a program for enhancing the policy declared in 
        this subtitle, together with such recommendations for 
        legislation as it deems necessary or desirable to further that 
        policy.
    (b) Regulations and Criteria for Determining Eligibility of 
Minority Business Enterprises for Procurement Contracts.--
            (1) In general.--The Commission shall establish regulations 
        for implementing programs pursuant to this subtitle that will 
        govern providers of telecommunications services and their 
        affiliates.
            (2) Verifying criteria.--The Commission shall develop and 
        publish regulations setting forth criteria for verifying and 
determining the eligibility of business enterprises that are owned by 
minorities or women for procurement contracts.
            (3) Outreach.--The Commission's regulations shall require 
        each provider of telecommunications services and its affiliates 
        to develop and to implement an outreach program to inform and 
        recruit business enterprises that are owned by minorities or 
        women to apply for procurement contracts under this subtitle.
            (4) Enforcement.--The Commission shall establish and 
        promulgate such regulations necessary to enforce the provisions 
        of this subtitle.
    (c) Waiver Authority.--The requirements of this section may be 
waived, in whole or in part, by the Commission with respect to a 
particular contract or subcontract in accordance with guidelines set 
forth in regulations which the Commission shall prescribe when it 
determines that the application of such regulations prove to result in 
undue hardship or unreasonable expense to a provider of 
telecommunications services.

SEC. 26004. SANCTIONS AND REMEDIES.

    (a) False Representation of Businesses; Sanctions.--
            (1) In general.--Any person or corporation, through its 
        directors, officers, or agent, which falsely represents the 
        business as a business enterprise that is owned by minorities 
        or women in the procurement or attempt to procure contracts 
        from telephone operating companies and their affiliates 
        pursuant to this article, shall be punished by a fine of not 
        more than $5,000, or by imprisonment for a period not to exceed 
        5 years of its directors, officers, or agents responsible for 
        the false statements, or by both fine and imprisonment.
            (2) Holding companies.--Any provider of telecommunications 
        services which falsely represents its annual report to the 
        Commission or its implementation of its programs pursuant to 
        this section shall be subject to a fine of $100,000 and be 
        subject to a penalty of up to 5 years restriction from 
        participation in lines of business activities provided for in 
        this subtitle.
    (b) Independent Cause of Action, Remedies, and Attorney Fees.--
            (1) Discrimination prohibited.--No otherwise qualified 
        business enterprise that is owned by minorities or women shall 
        solely, by reason of its racial, ethnic, or gender composition 
        be excluded from the participation in, be denied the benefits 
        of, or be subjected to discrimination in procuring contracts 
        from telephone utilities.
            (2) Civil actions authorized.--Whenever a qualified 
        business enterprise that is owned by minorities or women has 
        reasonable cause to believe that a provider of 
        telecommunications services or its affiliate is engaged in a 
        pattern or practice of resistance to the full compliance of any 
        provision of this subtitle, the business enterprise may bring a 
        civil action in the appropriate district court of the United 
        States against the provider of telecommunications services or 
        its affiliate requesting such monetary or injunctive relief, or 
        both, as deemed necessary to ensure the full benefits of this 
        subtitle.
            (3) Attorneys' fees and costs.--In any action or proceeding 
        to enforce or charge of a violation of a provision of this 
        subtitle, the court, in its discretion, may allow the 
        prevailing party reasonable attorneys' fees and costs.

SEC. 26005. DEFINITIONS.

    For the purpose of this subtitle, the following definitions apply:
            (1) The term ``business enterprise owned by minorities or 
        women'' means--
                    (A) a business enterprise that is at least 51 
                percent owned by a person or persons who are minority 
                persons or women; or
                    (B) in the case of any publicly owned business, at 
                least 51 percent of the stock of which is owned by one 
                or more persons who are minority persons or women, and 
                whose management and daily business operations are 
                controlled by one or more of those persons.
            (2) The term ``minority person'' means persons who are 
        Black Americans, Hispanic Americans, Native Americans, Asian 
        Americans, and Pacific Americans.
            (3) The term ``control'' means exercising the power to make 
        financial and policy decisions.
            (4) The term ``operate'' means the active involvement in 
        the day-to-day management of the business and not merely being 
        officers or directors.
            (5) The term ``Commission'' means the Federal 
        Communications Commission.
            (6) The term ``telecommunications service'' means the 
        offering, on a common carrier basis, of telecommunications 
        facilities, or of telecommunications by means of such 
        facilities. Such term does not include an information service.

         Subtitle G--HHS Women Scientist Employment Opportunity

SEC. 27001. WOMEN'S SCIENTIFIC EMPLOYMENT.

    The Public Health Service Act (42 U.S.C. 281 et seq.) is amended by 
adding at the end the following title:

``TITLE XXVII--WOMEN'S SCIENTIFIC EMPLOYMENT WITH DEPARTMENT OF HEALTH 
                           AND HUMAN SERVICES

``SEC. 2701. WOMEN'S SCIENTIFIC EMPLOYMENT.

    ``(a) In General.--
            ``(1) In general.--For each agency specified in paragraph 
        (2), the Secretary, in collaboration with the head of the 
        agency, shall--
                    ``(A) establish policies for the agency on matters 
                relating to the employment by the agency of women as 
                scientists, and periodically review and as appropriate 
                revise such policies; and
                    ``(B) monitor the extent of compliance with such 
                policies and take appropriate action in cases in which 
                the Secretary determines that the policies have been 
                violated.
            ``(2) Specified agencies.--The agencies referred to in 
        paragraph (1) are the National Institutes of Health, the 
        Centers for Disease Control and Prevention, the Food and Drug 
        Administration, and such other agencies or offices of the 
        Department of Health and Human Services as the Secretary 
        determines to be appropriate.
    ``(b) Certain Functions.--
            ``(1) In general.--In carrying out subsection (a) with 
        respect to a specified agency, the Secretary shall provide for 
        the following:
                    ``(A) Determining the concerns of women scientists 
                employed at the agency.
                    ``(B) Developing a policy defining the standard 
                tenure process for employment at the agency.
                    ``(C) Determining the reason for departure from the 
                agency by interviewing women and men scientists as they 
                leave.
                    ``(D) Distributing yearly to all employees of the 
                agency of the policy of the agency on flexible family 
                leave.
                    ``(E) Monitoring the number of women, including 
                minority women, included on the committees, panels, and 
                other working groups (and in meetings) of the agency.
                    ``(F) Making efforts to recruit minority women, 
                based on the small numbers of tenured minority women 
                scientists.
                    ``(G) Developing additional goals related to women 
                and minority women scientists at the agency.
            ``(2) Agency-specific provisions.--With respect to the 
        National Institutes of Health, in carrying out subsection (a), 
        the Secretary shall (in addition to activities under paragraph 
        (1)) provide for the implementation of the recommendations of 
        the group known as the Task Force on the Status of NIH 
        Intramural Women Scientists.
    ``(c) Inclusion of Women on Intramural and Extramural Conferences 
and Other Groups.--
            ``(1) In general.--The Secretary shall establish a policy 
        at each specified agency of requiring inclusion of women 
        scientists in greater numbers on or in conferences, workshops, 
        meetings, international congresses, and other groups funded or 
        sponsored by the agency. Such policy shall provide for the 
        inclusion of not less than one woman scientist in each such 
        group, except as provided in paragraph (2). This paragraph 
        applies whether such groups are held for employees of the 
        agency headquarters, for employees of field offices, or both.
            ``(2) Exclusion; written explanation.--The policy 
        established in paragraph (1) may provide that no woman 
        scientist will be included in a group for purposes of such 
        paragraph if the Secretary provides a waiver of the 
        requirement. The Secretary may grant such a waiver only if--
                    ``(A) the individual with the chief responsibility 
                for the group involved submits to the Secretary a 
                written request for the waiver and the request provides 
                an explanation of the reasons underlying the need for 
                the waiver; and
                    ``(B) the Secretary makes a determination that 
                extraordinary circumstances justify providing the 
                waiver.
    ``(d) Study on Pay Equity.--
            ``(1) In general.--For each specified agency, the Secretary 
        shall provide for a study to identify any pay differences among 
        men and women scientists employed by the agency, both tenured 
        and untenured. The study shall include recommendations on 
        measures to adjust any disparities or inequities, and shall 
        identify a program to communicate information on salary ranges 
        to all employees.
            ``(2) Report.--Not later than 240 days after the date of 
        the enactment of the Economic Equity Act of 1996, the Secretary 
        shall complete the study required in paragraph (1) and submit 
        to the Committee on Commerce of the House of Representatives, 
        and to the Committee on Labor and Human Resources of the 
        Senate, a report describing the findings made as a result of 
        the study.
    ``(e) Definitions.--For purposes of this section, the term 
`specified agency' means an agency specified in subsection (a)(2).
    ``(f) Authorization of Appropriations.--For the purpose of carrying 
out this section, there are authorized to be appropriated such sums as 
may be necessary for each of the fiscal years 1997 through 1999.''.

              Subtitle H--Women in Enterprise Development

SEC. 28001. WOMEN IN ENTERPRISE DEVELOPMENT.

    Chapter 1 of part I of the Foreign Assistance Act of 1961 is 
amended by inserting after section 113 the following:

``SEC. 114. WOMEN IN ENTERPRISE DEVELOPMENT.

    ``(a) Establishment of Program.--In carrying out this part, the 
Administrator of the Agency for International Development shall 
establish and implement a Women in Enterprise Development Program.
    ``(b) Description of Program.--This program shall provide funding 
and other support for projects having the following 3 interrelated 
components:
            ``(1) Financial assistance.--The provision of financial 
        assistance to women--
                    ``(A) to support the creation of small- to medium-
                size businesses in which women can readily participate;
                    ``(B) to foster investment in businesses 
                substantially owned or managed by women; and
                    ``(C) to enable such women to further their 
                education.
            ``(2) Educational assistance.--The provision of assistance 
        to encourage and support efforts of indigenous educational 
        institutions, and where appropriate other organizations--
                    ``(A) to encourage women to participate in the 
                processes of local and national government, and to 
                stimulate the interest of women in business;
                    ``(B) to prepare women for involvement in 
                government and business;
                    ``(C) to provide opportunities for women to gain 
                practical experience in government and business through 
                internships or on-the-job apprenticeships while in 
                school;
                    ``(D) to provide women with remedial assistance 
                whenever necessary; and
                    ``(E) to identify women with leadership potential 
                to serve as role models, and to assist such women in 
                furthering their education and obtaining suitable 
                positions in the public or private sector.
        Assistance under this paragraph shall encourage the development 
        and implementation of guidelines to be used by secondary and 
        postsecondary education institutions to achieve the objectives 
        described in subparagraphs (A) through (E) through the 
        development of appropriate curricula and other means.
            ``(3) Information assistance.--The provision of assistance 
        to support the creation or expansion of local resource centers 
        which offer to women interested in careers in business, 
        government, or related fields--
                    ``(A) courses in accounting, bookkeeping, and 
                elementary marketing practices, and other courses; and
                    ``(B) workshops, informational materials, career 
                counseling, and assistance in the local community.
    ``(c) Eligibility Criteria for Financial Assistance.--The 
Administrator of the Agency for International Development shall develop 
criteria for identifying the women who are eligible to receive 
financial assistance under subsection (b)(1).
    ``(d) Initial Funding Level.--The Congress urges the Administrator 
of the Agency for International Development, in carrying out this 
section during fiscal year 1997, to use not less than an amount equal 
to 10 percent of the amount made available under this part for 
assistance for micro-enterprise development.
    ``(e) Annual Reports.--The annual congressional presentation 
materials on economic assistance shall include a description of the 
assistance being provided under this section, including the amount that 
was provided for such assistance during preceding fiscal year, the 
amount estimated to be provided during the current fiscal year, and the 
amount proposed for the coming fiscal year.''.

                       TITLE III--WORK AND FAMILY

          Subtitle A--Child Care Consolidation and Investment

SEC. 31001. FINDINGS.

    Congress finds that--
            (1) fragmentation of the Federal Government's major child 
        care assistance programs has left gaps for many parents moving 
        from welfare to work;
            (2) child care problems have prevented 34 percent of poor 
        mothers between the ages 21 and 29 from working;
            (3) \2/3\ of all families receiving assistance under the 
        Aid to Families with Dependent Children program have at least 
        one preschool age child and need child care in order to work;
            (4) there already exists an unmet need for child care 
        assistance--37 States now have waiting lists that can run as 
        high as 35,000 individuals;
            (5) child care directly affects an individual's ability to 
        stay in the work force;
            (6) welfare reform that places work at its center will 
        increase the demand for child care and require an additional 
        investment of resources;
            (7) child care consumes $260 per month or about 27 percent 
        of income for average working poor families, leaving them with 
        less income than families eligible for assistance under the Aid 
        to Families with Dependent Children program;
            (8) quality must be a central feature of the child care 
        policy of the United States;
            (9) only 1 in 7 day care centers offer good quality care;
            (10) 40 percent of day care centers serving infants and 
        toddlers do not meet basic sanitary conditions, have safety 
        problems, and do not encourage learning; and
            (11) only 9 percent of family and relative day care is 
        considered good quality care.

SEC. 31002. PURPOSE.

    It is the purpose of this subtitle to--
            (1) eliminate program fragmentation and create a seamless 
        system of high quality child care that allows for continuity of 
        care for children as parents move from welfare to job training 
        to work;
            (2) provide for parental choice among high quality child 
        care programs; and
            (3) increase the availability of high quality affordable 
        child care in order to promote self sufficiency and support 
        working families.

SEC. 31003. AMENDMENTS TO CHILD CARE AND DEVELOPMENT BLOCK GRANT ACT OF 
              1990.

    (a) Appropriations.--Section 658B of the Child Care and Development 
Block Grant Act of 1990 (42 U.S.C. 9858) is amended to read as follows:

``SEC. 658B. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this 
subchapter, $2,790,000,000 for fiscal year 1997, $3,040,000,000 for 
fiscal year 1998, $3,460,000,000 for fiscal year 1999, $4,030,000,000 
for fiscal year 2000, and $4,680,000,000 for fiscal year 2001.''.
    (b) Awarding of Grants.--Section 658C of the Child Care and 
Development Block Grant Act of 1990 (42 U.S.C. 9858a) is amended by 
striking ``is authorized to'' and inserting ``shall''.
    (c) Supplementation.--Section 658E(c)(2)(J) of the Child Care and 
Development Block Grant Act of 1990 (42 U.S.C. 9858c(c)(2)(J)) is 
amended by inserting ``in fiscal year 1995'' before the period.
    (d) Set-Asides for Quality and Working Families, and Child Care 
Guarantee.--Section 658E(c)(3) of the Child Care and Development Block 
Grant Act of 1990 (42 U.S.C. 9858c(c)(3))--
            (1) in subparagraph (C), by striking ``25 percent'' and 
        inserting ``20 percent''; and
            (2) by adding at the end thereof the following:
                    ``(D) Assistance for low-income working families.--
                The State shall reserve not less than 50 percent of the 
                amount provided to the State and available for 
                providing services under this subchapter, to carry out 
                child care activities to support low-income working 
                families residing in the State.
                    ``(E) Child care guarantee.--The State plan shall 
                provide assurances that the availability of child care 
                under the grant will be coordinated in an appropriate 
                manner (as determined by the Secretary) with the 
                requirements of part A of title IV of the Social 
                Security Act. Such coordination shall ensure that the 
                single custodial parent of a dependent child who is 
                less than 11 years of age, or who is a child with a 
                disability (as defined in section 602(1)(A) of the 
                Individuals with Disabilities Act (20 U.S.C. 
                1401(1)(A)), is not required to undertake an education, 
                job training, job search, or employment requirement 
                unless child care assistance in an appropriate child 
                care program is made available.''.
    (e) Matching Requirement.--Section 658E(c) of the Child Care and 
Development Block Grant Act of 1990 (42 U.S.C. 9858c(c)) is amended by 
adding at the end thereof the following:
            ``(6) Matching requirement.--With respect to amounts made 
        available to a State in each fiscal year beginning on or after 
        the effective date of this paragraph, that exceed the aggregate 
        amounts received by the State for child care services in fiscal 
        year 1995, the State plan shall provide that, with respect to 
        the costs to be incurred by the State in carrying out the 
        activities for which a grant under this subchapter is awarded, 
        the State will make available (directly or through in-kind 
        donations from public or private entities) non-Federal 
        contributions in an amount equal to not less than $1 for every 
        $4 of Federal funds provided under the grant.''.
    (f) Improving Quality.--
            (1) Increase in required funding.--Section 658G of the 
        Child Care and Development Block Grant Act of 1990 (42 U.S.C. 
        9858e) is amended by striking ``not less than 20 percent'' and 
        inserting ``50 percent''.
            (2) Quality improvement incentive initiative.--Section 658G 
        of the Child Care and Development Block Grant Act of 1990 (42 
        U.S.C. 9858e) is amended--
                    (A) by striking ``A State'' and inserting ``(a) In 
                General.--A State''; and
                    (B) by adding at the end thereof the following:
    ``(b) Quality Improvement Incentive Initiative.--
            ``(1) In general.--The Secretary shall establish a child 
        care quality improvement incentive initiative to make funds 
        available to States that demonstrate progress in the 
        implementation of--
                    ``(A) innovative teacher training programs such as 
                the Department of Defense staff development and 
                compensation program for child care personnel; or
                    ``(B) enhanced child care quality standards and 
                licensing and monitoring procedures.
            ``(2) Funding.--From the amounts made available for each 
        fiscal year under subsection (a), the Secretary shall reserve 
        not to exceed $50,000,000 in each such fiscal year to carry out 
        this subsection.''.
    (g) Before- and After-School Services.--Section 658H(a) of the 
Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858f(a)) 
is amended by striking ``not less than 75 percent'' and inserting ``50 
percent''.
    (h) Payments.--Section 658J(a) of the Child Care and Development 
Block Grant Act of 1990 (42 U.S.C. 9858h) is amended by striking 
``Subject to the availability of appropriation, a'' and inserting 
``A''.
    (i) Allotments.--Section 658O(b) of the Child Care and Development 
Block Grant Act of 1990 (42 U.S.C. 9858m(b)) is amended by adding at 
the end thereof the following:
            ``(5) Allotment.--
                    ``(A) Base allotment.--The amount allotted to a 
                State under this section shall include the base amount 
                that the State received under this Act, and under the 
                provisions repealed under section 31004 of the Economic 
                Equity Act of 1996, in fiscal year 1995.
                    ``(B) Additional amounts.--Any amounts appropriated 
                under section 658B for a fiscal year and remaining 
after the requirement of subparagraph (A) is complied with, shall be 
allotted to States pursuant to the formula described in paragraph 
(1).''.

SEC. 31004. PROGRAM REPEALS.

    (a) AFDC JOBS and Transitional Child Care.--
            (1) Repeal.--Paragraphs (1), (3), (4), (5), (6), and (7) of 
        section 402(g) of the Social Security Act (42 U.S.C. 602(g)) 
        are repealed.
            (2) Conforming amendments.--Part A of title IV of the 
        Social Security Act (42 U.S.C. 601 et seq.) is amended--
                    (A) in section 402(a)(19) (42 U.S.C. 602(a)(19))--
                            (i) in subparagraph (B)(i)(I), by striking 
                        ``section 402(g)'' and inserting ``the Child 
                        Care Development Block Grant Act of 1990 (42 
                        U.S.C. 9858 et seq.)'';
                            (ii) in subparagraph (C)(iii)(II), by 
                        striking ``section 402(g)'' and inserting ``the 
                        Child Care Development Block Grant Act of 1990 
                        (42 U.S.C. 9858 et seq.)'';
                            (iii) in subparagraph (D), by striking 
                        ``section 402(g)'' and inserting ``the Child 
                        Care Development Block Grant Act of 1990 (42 
                        U.S.C. 9858 et seq.)''; and
                            (iv) in subparagraph (F)(iv), by striking 
                        ``section 402(g)'' and inserting ``section 
                        402(g)(2) and the Child Care Development Block 
                        Grant Act of 1990 (42 U.S.C. 9858 et seq.)'';
                    (B) in section 402(g)(2) (42 U.S.C. 602(g)(2)), by 
                striking ``(in addition to guaranteeing child care 
                under paragraph (1))''; and
                    (C) in section 403(l)(1)(A) (42 U.S.C. 
                603(l)(1)(A)), by striking ``(including expenditures 
                for child care under section 402(g)(1)(A)(i), but only 
                in the case of a State with respect to which section 
                1108 applies)''.
    (b) At-Risk Child Care.--Sections 402(i) and 403(n) of the Social 
Security Act (42 U.S.C. 602(i), 603(n)) are repealed.
    (c) State Dependent Care Grants.--Subchapter E of chapter 8 of 
subtitle A of title VI of the Omnibus Budget Reconciliation Act of 1981 
(42 U.S.C. 9871 et seq.) is repealed.
    (d) Child Development Associate Scholarship Assistance Act.--The 
Child Development Associate Scholarship Assistance Act of 1985 (42 
U.S.C. 10901 et seq.) is repealed.
    (e) Secretarial Submission of Legislative Proposal for Technical 
and Conforming Amendments.--The Secretary of Health and Human Services 
shall, within 90 days after the date of the enactment of this subtitle, 
submit to the appropriate committees of the Congress, a legislative 
proposal providing for such technical and conforming amendments in the 
law as are required by the provisions of subsections (a) and (c).

SEC. 31005. EFFECTIVE DATE.

    This subtitle shall take effect on the first day of the first 
fiscal year beginning after the date of the enactment of this subtitle.

           Subtitle B--Child Care Public Private Partnership

SEC. 32001. ESTABLISHMENT OF BUSINESS INCENTIVE GRANT PROGRAM.

    The Secretary of Health and Human Services shall establish a 
program to make grants to--
            (1) businesses and consortia--
                    (A) to pay start-up costs incurred to provide child 
                care services; or
                    (B) to provide additional child care services;
        needed by the employees of such businesses; and
            (2) nonprofit business organizations to provide technical 
        information and assistance to enable businesses to provide 
        child care services.

SEC. 32002. ELIGIBILITY TO RECEIVE GRANTS.

    To be eligible to receive a grant under section 32001, a business, 
nonprofit business organization, or consortium shall submit to the 
Secretary an application in accordance with section 32003.

SEC. 32003. APPLICATION.

    The application required by section 32002 shall be submitted by a 
business, nonprofit business organization, or consortium at such time, 
in such form, and containing such information as the Secretary may 
require by rule, except that such application shall contain--
            (1) an assurance that the applicant shall expend, for the 
        purpose for which such grant is made, an amount not less than 
        200 percent of the amount of such grant;
            (2) an assurance that such applicant will expend such grant 
        for the use specified in paragraph (1) or (2) of section 32001, 
        as the case may be;
            (3) an assurance that such applicant will employ strategies 
        to ensure that child care services provided by such applicant, 
        or provided with the technical information and assistance made 
        available by such applicant, are provided at affordable rates, 
        and on an equitable basis, to low- and moderate-income 
        employees;
            (4) an assurance that such applicant--
                    (A) in the case of a business or consortium, will 
                comply with all State and local licensing requirements 
                applicable to such business or consortium concerning 
                the provision of child care services; or
                    (B) in the case of a nonprofit business 
                organization, will employ procedures to ensure that 
                technical information and assistance provided under 
                this subtitle by such business organization will be 
                provided only to businesses that provide child care 
                services in compliance with all State and local 
                licensing requirements applicable to child care 
                providers in such State; and
            (5) in the case of a business or consortium, an assurance 
        that if the employees of such applicant do not require all the 
        child care services for which such grant and the funds required 
        by paragraph (1) are to be expended by such applicant, the 
        excess of such child care services shall be made available to 
        families in the community in which such applicant is located.

SEC. 32004. SELECTION OF GRANTEES.

    For purposes of selecting applicants to receive grants under this 
subtitle, the Secretary shall give priority to businesses that have 
fewer than 100 full-time employees. To the extent practicable, the 
Secretary shall--
            (1) make grants equitably under this subtitle to applicants 
        located in all geographical regions of the United States; and
            (2) give priority to applicants for grants under section 
        32001(1).

SEC. 32005. DEFINITIONS.

    As used in the Act:
            (1) Business.--The term ``business'' means a person engaged 
        in commerce whose primary activity is not providing child care 
        services.
            (2) Child care services.--The term ``child care services'' 
        means care for a child that is--
                    (A) provided on the site at which a parent of such 
                child is employed or at a site nearby in the community; 
                and
                    (B) subsidized at least in part by the business 
                that employs such parent.
            (3) Consortium.--The term ``consortium'' means 2 or more 
        businesses acting jointly. A consortium may also include a 
        nonprofit private organization.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Health and Human Services.

SEC. 32006. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to carry out this subtitle 
$25,000,000 for each of the fiscal years 1994, 1995, 1996, and 1997.

          Subtitle C--Dependent Care Tax Credit Refundability

SEC. 33001. DEPENDENT CARE TAX CREDIT.

    (a) Dependent Care Services.--Subpart C of part IV of subchapter A 
of chapter 1 of the Internal Revenue Code of 1986 (relating to 
refundable credits) is amended by redesignating section 35 as section 
36 and by inserting after section 34 the following new section:

``SEC. 35. DEPENDENT CARE SERVICES.

    ``(a) Allowance of Credit.--
            ``(1) In general.--In the case of an individual who 
        maintains a household which includes as a member 1 or more 
        qualifying individuals, there shall be allowed as a credit 
        against the tax imposed by this subtitle for the taxable year 
        an amount equal to the applicable percentage of the sum of--
                    ``(A) the employment-related expenses paid by such 
                individual during the taxable year, plus
                    ``(B) the respite care expenses paid by such 
                individual during the taxable year.
            ``(2) Applicable percentage defined.--
                    ``(A) In general.--For purposes of paragraph (1), 
                the term `applicable percentage' means 50 percent 
                reduced (but not below 20 percent) by 1 percentage 
                point for each full $1,000 amount by which the 
                taxpayer's adjusted gross income for the taxable year 
                exceeds $15,000.
                    ``(B) Cost-of-living adjustment.--
                            ``(i) In general.--In the case of a taxable 
                        year beginning in a calendar year after 1997, 
                        subparagraph (A) shall be applied by increasing 
                        the $15,000 amount contained therein by the 
                        cost-of-living adjustment (as defined in 
                        section 1(f)(3)) for such calendar year 
                        determined by substituting `1996' for `1992' in 
                        subparagraph (B) of section 1(f)(3).
                            ``(ii) Rounding.--If any increase 
                        determined under clause (i) is not a multiple 
                        of $10, such increase shall be rounded to the 
                        nearest multiple of $10 (or if such increase is 
                        a multiple of $15, such increase shall be 
                        increased to the next highest multiple of $10).
    ``(b) Employment-Related Expenses.--For purposes of this section--
            ``(1) Determination of eligible expenses.--
                    ``(A) In general.--The term `employment-related 
                expenses' means amounts paid for the following 
                expenses, but only if such expenses are incurred to 
                enable the taxpayer to be gainfully employed for any 
                period for which there are 1 or more qualifying 
                individuals with respect to the taxpayer:
                            ``(i) expenses for household services, and
                            ``(ii) expenses for the care of a 
                        qualifying individual.
                Such term shall not include any amount paid for 
                services outside the taxpayer's household at a camp 
                where the qualifying individual stays overnight and 
                shall not include any respite care expense taken into 
                account under subsection (a).
                    ``(B) Exception.--Employment-related expenses 
                described in subparagraph (A) which are incurred for 
                services outside the taxpayer's household shall be 
                taken into account only if incurred for the care of--
                            ``(i) a qualifying individual described in 
                        subsection (d)(1), or
                            ``(ii) a qualifying individual (not 
                        described in subsection (d)(1)) who regularly 
                        spends at least 8 hours each day in the 
                        taxpayer's household.
                    ``(C) Dependent care centers.--Employment-related 
                expenses described in subparagraph (A) which are 
                incurred for services provided outside the taxpayer's 
                household by a dependent care center (as defined in 
                subparagraph (D)) shall be taken into account only if--
                            ``(i) such center complies with all 
                        applicable laws and regulations of a State or 
                        unit of local government, and
                            ``(ii) the requirements of subparagraph (B) 
                        are met.
                    ``(D) Dependent care center defined.--For purposes 
                of this paragraph, the term `dependent care center' 
                means any facility which--
                            ``(i) provides care for more than 6 
                        individuals (other than individuals who reside 
                        at the facility), and
                            ``(ii) receives a fee, payment, or grant 
                        for providing services for any of the 
                        individuals (regardless of whether such 
                        facility is operated for profit).
            ``(2) Dollar limit on amount creditable.--
                    ``(A) In general.--The amount of the employment-
                related expenses incurred during any taxable year which 
                may be taken into account under subsection (a) shall 
                not exceed--
                            ``(i) $2,400 if there is 1 qualifying 
                        individual with respect to the taxpayer for 
                        such taxable year, or
                            ``(ii) $4,800 if there are 2 or more 
                        qualifying individuals with respect to the 
                        taxpayer for such taxable year.
                The amount determined under clause (i) or (ii) 
                (whichever is applicable) shall be reduced by the 
                aggregate amount excludable from gross income under 
                section 129 for the taxable year.
                    ``(B) Reduction in limit for amount of respite care 
                expenses.--The limitation of subparagraph (A) shall be 
                reduced by the amount of the respite care expenses 
                taken into account by the taxpayer under subsection (a) 
                for the taxable year.
            ``(3) Earned income limitation.--
                    ``(A) In general.--Except as otherwise provided in 
                this paragraph, the amount of the employment-related 
                expenses incurred during any taxable year which may be 
                taken into account under subsection (a) shall not 
                exceed--
                            ``(i) in the case of an individual who is 
                        not married at the close of such year, such 
                        individual's earned income for such year, or
                            ``(ii) in the case of an individual who is 
                        married at the close of such year, the lesser 
                        of such individual's earned income or the 
                        earned income of his spouse for such year.
                    ``(B) Special rule for spouse who is a student or 
                incapable of caring for himself.--In the case of a 
                spouse who is a student or a qualified individual 
                described in subsection (d)(3), for purposes of 
                subparagraph (A), such spouse shall be deemed for each 
                month during which such spouse is a full-time student 
                at an educational institution, or is such a qualifying 
                individual, to be gainfully employed and to have earned 
                income of not less than--
                            ``(i) $200 if paragraph (2)(A)(i) applies 
                        for the taxable year, or
                            ``(ii) $400 if paragraph (2)(A)(ii) applies 
                        for the taxable year.
                In the case of any husband and wife, this subparagraph 
                shall apply with respect to only one spouse for any one 
                month.
    ``(c) Respite Care Expenses.--For purposes of this section--
            ``(1) In general.--The term `respite care expenses' means 
        expenses paid (whether or not to enable the taxpayer to be 
        gainfully employed) for--
                    ``(A) the care of a qualifying individual--
                            ``(i) who has attained the age of 13, or
                            ``(ii) who is under the age of 13 but has a 
                        physical or mental impairment which results in 
                        the individual being incapable of caring for 
                        himself,
                during any period when such individual regularly spends 
                at least 8 hours each day in the taxpayer's household, 
                or
                    ``(B) care (for not more than 14 days during the 
                calendar year) of a qualifying individual described in 
                subparagraph (A) during any period during which the 
                individual does not regularly spend at least 8 hours 
                each day in the taxpayer's household.
            ``(2) Dollar limit.--The amount of the respite care 
        expenses incurred during any taxable year which may be taken 
        into account under subsection (a) shall not exceed--
                    ``(A) $1,200 if such expenses are incurred with 
                respect to only 1 qualifying individual for the taxable 
                year, or
                    ``(B) $2,400 if such expenses are incurred for 2 or 
                more qualifying individuals for such taxable year.
    ``(d) Qualifying Individual.--For purposes of this section, the 
term `qualifying individual' means--
            ``(1) a dependent of the taxpayer who is under the age of 
        13 and with respect to whom the taxpayer is entitled to a 
        deduction under section 151(c),
            ``(2) a dependent of the taxpayer who is physically or 
        mentally incapable of caring for himself, or
            ``(3) the spouse of the taxpayer, if he is physically or 
        mentally incapable of caring for himself.
    ``(e) Special Rules.--For purposes of this section--
            ``(1) Maintaining household.--An individual shall be 
        treated as maintaining a household for any period only if over 
        half the cost of maintaining the household for such period is 
        furnished by such individual (or, if such individual is married 
        during such period, is furnished by such individual and his 
        spouse).
            ``(2) Married couples must file joint return.--If the 
        taxpayer is married at the close of the taxable year, the 
        credit shall be allowed under subsection (a) only if the 
        taxpayer and his spouse file a joint return for the taxable 
        year.
            ``(3) Marital status.--An individual legally separated from 
        his spouse under a decree of divorce or of separate maintenance 
        shall not be considered as married.
            ``(4) Certain married individuals living apart.--If--
                    ``(A) an individual who is married and who files a 
                separate return--
                            ``(i) maintains as his home a household 
                        which constitutes for more than one-half of the 
                        taxable year the principal place of abode of a 
                        qualifying individual, and
                            ``(ii) furnishes over half the cost of 
                        maintaining such household during the taxable 
                        year, and
                    ``(B) during the last 6 months of such taxable year 
                such individual's spouse is not a member of such 
                household,
        such individual shall not be considered as married.
            ``(5) Special dependency test in case of divorced parents, 
        etc.--If--
                    ``(A) paragraph (2) or (4) of section 152(e) 
                applies to any child with respect to any calendar year, 
                and
                    ``(B) such child is under the age of 13 or is 
                physically or mentally incapable of caring for himself,
        in the case of any taxable year beginning in such calendar 
        year, such child shall be treated as a qualifying individual 
        with respect to the custodial parent (within the meaning of 
        section 152(e)(1)), and shall not be treated as a qualifying 
        individual with respect to the noncustodial parent.
            ``(6) Payments to related individuals.--No credit shall be 
        allowed under subsection (a) for any amount paid by the 
        taxpayer to an individual--
                    ``(A) with respect to whom, for the taxable year, a 
                deduction under section 151(c) (relating to deduction 
                for personal exemptions for dependents) is allowable 
                either to the taxpayer or his spouse, or
                    ``(B) who is a child of the taxpayer (within the 
                meaning of section 151(c)(3)) who has not attained the 
                age of 19 at the close of the taxable year.
        For purposes of this paragraph, the term `taxable year' means 
        the taxable year of the taxpayer in which the service is 
        performed.
            ``(7) Student.--The term `student' means an individual who 
        during each of 5 calendar months during the taxable year is a 
        full-time student at an educational organization.
            ``(8) Educational organization.--The term `educational 
        organization' means an educational organization described in 
        section 170(b)(1)(A)(ii).
            ``(9) Identifying information required with respect to 
        service provider.--No credit shall be allowed under subsection 
        (a) for any amount paid to any person unless--
                    ``(A) the name, address, and taxpayer 
                identification number of such person are included on 
                the return claiming the credit, or
                    ``(B) if such person is an organization described 
                in section 501(c)(3) and exempt from tax under section 
                501(a), the name and address of such person are 
                included on the return claiming the credit.
        In the case of a failure to provide the information required 
        under the preceding sentence, the preceding sentence shall not 
        apply if it is shown that the taxpayer exercised due diligence 
        in attempting to provide the information so required.
    ``(f) Regulations.--The Secretary shall prescribe such regulations 
as may be necessary to carry out the purposes of this section.''
    (b) Conforming Amendments.--
            (1) Section 21 of such Code is hereby repealed.
            (2) Paragraph (2) of section 129(b) of such Code is amended 
        by striking ``section 21(d)(2)'' and inserting ``section 
        35(b)(3)(B)''.
            (3) Subsection (e) of section 213 of such Code is amended 
        by striking ``section 21'' and inserting ``section 35''.
    (c) Technical Amendments.--
            (1) The table of sections for subpart C of part IV of 
        subchapter A of chapter 1 of such Code is amended by striking 
        the item relating to section 35 and inserting the following:

                              ``Sec. 35. Dependent care services.
                              ``Sec. 36. Overpayments of tax.''
            (2) The table of sections for subpart A of such part IV is 
        amended by striking the item relating to section 21.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1996.

               Subtitle D--IRA Deductions for Homemakers

SEC. 34001. HOMEMAKERS ELIGIBLE FOR FULL IRA DEDUCTION.

    (a) Spousal IRA Computed on Basis of Compensation of Both 
Spouses.--Subsection (c) of section 219 of the Internal Revenue Code of 
1986 (relating to special rules for certain married individuals) is 
amended to read as follows:
    ``(c) Special Rules for Certain Married Individuals.--
            ``(1) In general.--In the case of an individual to whom 
        this paragraph applies for the taxable year, the limitation of 
        paragraph (1) of subsection (b) shall be equal to the lesser 
        of--
                    ``(A) $2,000, or
                    ``(B) the sum of--
                            ``(i) the compensation includible in such 
                        individual's gross income for the taxable year, 
                        plus
                            ``(ii) the compensation includible in the 
                        gross income of such individual's spouse for 
                        the taxable year reduced by the amount 
                        allowable as a deduction under subsection (a) 
                        to such spouse for such taxable year.
            ``(2) Individuals to whom paragraph (1) applies.--Paragraph 
        (1) shall apply to any individual if--
                    ``(A) such individual files a joint return for the 
                taxable year, and
                    ``(B) the amount of compensation (if any) 
                includible in such individual's gross income for the 
                taxable year is less than the compensation includible 
                in the gross income of such individual's spouse for the 
                taxable year.''
    (b) IRA Allowed for Spouses Who Are Not Active Plan Participants.--
Section 219(g)(1) of the Internal Revenue Code of 1986 is amended by 
striking ``or the individual's spouse''.
    (c) Conforming Amendments.--
            (1) Paragraph (2) of section 219(f) of the Internal Revenue 
        Code of 1986 (relating to other definitions and special rules) 
        is amended by striking ``subsections (b) and (c)'' and 
        inserting ``subsection (b)''.
            (2) Section 408(d)(5) of such Code is amended by striking 
        ``$2,250'' and inserting ``$2,000''.
    (d) Effective Date.--The amendments made by this subtitle shall 
apply to taxable years beginning after December 31, 1996.

      Subtitle E--Federal Parental Leave for Education Activities

SEC. 35001. COVERAGE OF EMPLOYEES.

    Paragraphs (2)(B)(ii) and (4)(A)(i) of section 101 of the Family 
and Medical Leave Act of 1993 (29 U.S.C. 2611 (2)(B)(ii) and (4)(A)(i)) 
are amended by striking ``50'' each place it appears and inserting 
``25''.

SEC. 35002. PARENTAL INVOLVEMENT LEAVE.

    (a) Leave Requirement.--Section 102(a) of the Family and Medical 
Leave Act of 1993 (29 U.S.C. 2612(a)) is amended by adding at the end 
the following:
            ``(3) Entitlement to parental involvement leave.--
                    ``(A) In general.--Subject to section 103(f), an 
                eligible employee shall be entitled to a total of 4 
                hours of leave during any 30-day period, and a total of 
                24 hours of leave during any 12-month period, in 
                addition to leave available under paragraph (1), to 
                participate in or attend an activity that--
                            ``(i) is sponsored by a school or community 
                        organization; and
                            ``(ii) relates to a program of the school 
                        or organization that is attended by a son or 
                        daughter of the employee, including a foster 
                        child of the employee.
                    ``(B) Definitions.--As used in this paragraph:
                            ``(i) Community organization.--The term 
                        `community organization' means a private 
                        nonprofit organization that is representative 
                        of a community or a significant segment of a 
                        community and provides activities for 
                        individuals described in subparagraph (A) or 
                        (B) of section 101(12), such as a scouting or 
                        sports organization.
                            ``(ii) School.--The term `school' means an 
                        elementary school or secondary school (as such 
                        terms are defined in section 14101 of the 
                        Elementary and Secondary Education Act of 1965 
                        (20 U.S.C. 8801)), a Head Start program 
                        assisted under the Head Start Act (42 U.S.C. 
                        9831 et seq.), and a child care facility 
                        licensed under State law.''.
    (b) Schedule.--Section 102(b)(1) of such Act (29 U.S.C. 2612(b)(1)) 
is amended by inserting after the second sentence the following: 
``Leave under subsection (a)(3) may be taken intermittently or on a 
reduced leave schedule.''.
    (c) Substitution of Paid Leave.--Section 102(d)(2)(A) of such Act 
(29 U.S.C. 2612(d)(2)(A)) is amended by inserting before the period the 
following: ``, or for leave provided under subsection (a)(3) for any 
part of the 24-hour period of such leave under such subsection''.
    (d) Notice.--Section 102(e)(1) of such Act (29 U.S.C. 2612(e)(1)) 
is amended by adding at the end the following: ``In any case in which 
an employee requests leave under subsection (a)(3), the employee shall 
provide the employer with not less than 7 days' notice, before the date 
the leave is to begin, of the employee's intention to take leave under 
such subsection.''.
    (e) Certification.--Section 103 of such Act (29 U.S.C. 2613) is 
amended by adding at the end the following:
    ``(f) Certification for Parental Involvement Leave.--An employer 
may require that a request for leave under section 102(a)(3) be 
supported by a certification issued at such time and in such manner as 
the Secretary may by regulation prescribe.''.

SEC. 35003. PARENTAL INVOLVEMENT LEAVE FOR CIVIL SERVANTS.

    (a) Leave Requirement.--Section 6382(a) of title 5, United States 
Code, is amended by adding at the end the following:
    ``(3)(A) Subject to section 6383(f), an employee shall be entitled 
to a total of 4 hours of leave during any 30-day period, and a total of 
24 hours of leave during any 12-month period, in addition to leave 
available under paragraph (1), to participate in or attend an activity 
that--
            ``(i) is sponsored by a school or community organization; 
        and
            ``(ii) relates to a program of the school or organization 
        that is attended by a son or daughter of the employee, 
        including a foster child of the employee.
    ``(B) As used in this paragraph:
            ``(i) The term `community organization' means a private 
        nonprofit organization that is representative of a community or 
        a significant segment of a community and provides activities 
        for individuals described in subparagraph (A) or (B) of section 
        6381(6), such as a scouting or sports organization.
            ``(ii) The term `school' means an elementary school or 
        secondary school (as such terms are defined in section 14101 of 
        the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        8801)), a Head Start program assisted under the Head Start Act 
        (42 U.S.C. 9831 et seq.), and a child care facility licensed 
        under State law.''.
    (b) Schedule.--Section 6382(b)(1) of such title is amended by 
inserting after the second sentence the following: ``Leave under 
subsection (a)(3) may be taken intermittently or on a reduced leave 
schedule.''.
    (c) Substitution of Paid Leave.--Section 6382(d) of such title is 
amended by inserting before ``, except'' the following: ``, or for 
leave provided under subsection (a)(3) any of the employee's accrued or 
accumulated annual leave under subchapter I for any part of the 24-hour 
period of such leave under such subsection''.
    (d) Notice.--Section 6382(e)(1) of such title is amended by adding 
at the end the following: ``In any case in which an employee requests 
leave under subsection (a)(3), the employee shall provide the employing 
agency with not less than 7 days' notice, before the date the leave is 
to begin, of the employee's intention to take leave under such 
subsection.''.
    (e) Certification.--Section 6383 of such title is amended by adding 
at the end the following:
    ``(f) An employing agency may require that a request for leave 
under section 6382(a)(3) be supported by a certification issued at such 
time and in such manner as the Office of Personnel Management may by 
regulation prescribe.''.

       Subtitle F--Tax Incentives for Family-Friendly Workplaces

SEC. 36001. SMALL BUSINESS FAMILY AND MEDICAL LEAVE CREDIT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to business related 
credits) is amended by adding at the end the following new section:

``SEC. 45C. SMALL BUSINESS FAMILY AND MEDICAL LEAVE CREDIT.

    ``(a) Amount of Credit.--For purposes of section 38, in the case of 
an eligible small business employer, the amount of the small business 
family and medical leave credit determined under this section for any 
taxable year shall be an amount equal to 50 percent of the qualified 
family and medical leave costs paid or incurred by the taxpayer during 
such taxable year.
    ``(b) Limitation on Credit.--The credit allowed by subsection (a) 
with respect to each employee for qualified family and medical leave 
costs paid or incurred by the taxpayer during the taxable year with 
respect to such employee shall not exceed $2,000.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Eligible small business employer.--The term `eligible 
        small business employer' means any employer who complies with 
        title I of the Family and Medical Leave Act of 1993 but who is 
        not required to comply with such title by reason of employing 
        fewer than 50 employees during the periods described in section 
        101(4)(A) of such Act.
            ``(2) Qualified family and medical leave costs.--The term 
        `qualified family and medical leave costs' means expenses 
        incurred in connection with complying with title I of the 
        Family and Medical Leave Act of 1993.
    ``(d) Denial of Double Benefit.--No deduction shall be allowed 
under this chapter for that portion of the qualified family and medical 
leave costs otherwise allowable as a deduction for the taxable year 
which is equal to the amount of the credit determined for such taxable 
year under this section.''
    (b) Conforming Amendment.--Subsection (b) of section 38 of such 
Code is amended by striking ``plus'' at the end of paragraph (10), by 
striking the period at the end of paragraph (11) and inserting ``, 
plus'', and by adding at the end the following new paragraph:
            ``(12) in the case of an eligible small business employer 
        (as defined in section 45C(c)), the small business family and 
        medical leave credit determined under section 45C.''
    (c) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by adding 
at the end the following new item:

                              ``Sec. 45C. Small business family and 
                                        medical leave credit.''
    (d) Effective Date.--The amendments made by this section shall 
apply to expenses paid or incurred after the date which is 6 months 
after the date of the enactment of this subtitle.

SEC. 36002. CREDIT FOR WAGES PAID TO EMPLOYEE WHO IS ALLOWED TO SHIFT 
              HOURS OF EMPLOYMENT OR TO WORK AT HOME IN ORDER TO REDUCE 
              CHILD CARE NEEDS.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to business related 
credits), as amended by section 36001, is amended by adding at the end 
the following new section:

``SEC. 45D. WAGES PAID TO EMPLOYEE WHO IS ALLOWED TO SHIFT HOURS OF 
              EMPLOYMENT OR WORK AT HOME IN ORDER TO REDUCE CHILD CARE 
              NEEDS.

    ``(a) In General.--For purposes of section 38, the amount of the 
child care-related wage credit determined under this section for any 
taxable year shall be an amount equal to \1/3\ of the aggregate wages 
paid or incurred during such year which are attributable to services 
performed by an employee of the taxpayer during the 1-year period 
beginning on the date the employee first becomes a qualified employee 
of the taxpayer.
    ``(b) Qualified Employee.--For purposes of this section, the term 
`qualified employee' means any full-time employee if--
            ``(1) such employee is permitted by the employer, solely in 
        order to reduce the amount of dependent care services provided 
        (to a dependent of the employee) outside the employee's 
        household, to perform services for the employer--
                    ``(A) at the employee's home, or
                    ``(B) during a period which is not within the 
                normal business hours of the employer, and
            ``(2) as a result of the services performed for the 
        employer as described in subparagraphs (A) and (B) of paragraph 
        (1), there is at least a 20 percent reduction in the amount of 
        time dependent care services are provided to a dependent of the 
        employee outside the employee's household.
    ``(c) Other Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Employee must be qualified employee for entire 
        year.--No credit shall be determined under subsection (a) with 
        respect to any employee unless such employee is a qualified 
        employee throughout the 1-year period described in subsection 
        (a).
            ``(2) Only $6,000 of wages per year taken into account.--
        The amount of the wages which may be taken into account with 
        respect to any employee shall not exceed $6,000 per year.
            ``(3) Wages.--The term `wages' has the meaning given such 
        term by section 51(c) (determined without regard to paragraph 
        (4) thereof).
            ``(4) Certain rules to apply.--Rules similar to the rules 
        of section 52 and subsections (f), (g), (h), (i), and (k) of 
        section 51 shall apply.''
    (b) Conforming Amendment.--Subsection (b) of section 38 of such 
Code (relating to current year business credit), as amended by section 
36001(b), is amended by striking ``plus'' at the end of paragraph (11), 
by striking the period at the end of paragraph (12) and inserting ``, 
plus'', and by adding at the end the following new paragraph:
            ``(13) the child care-related wage credit determined under 
        section 45D(a).''
    (c) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by adding 
at the end the following new item:

                              ``Sec. 45D. Wages paid to employee who is 
                                        allowed to shift hours of 
                                        employment or work at home in 
                                        order to reduce child care 
                                        needs.''
    (d) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to wages paid or incurred after the date which is 6 
        months after the date of the enactment of this subtitle.
            (2) Employer practices before effective date.--For purposes 
        of section 45D(b)(2) of the Internal Revenue Code of 1986, as 
        added by this section, no reduction before the 1st taxable year 
        to which such section applies shall be taken into account.

                   Subtitle G--Parental Equity Leave

SEC. 37001. LEAVE FOR ADOPTED AND FOSTER CHILDREN.

    If an employer provides to an employee who is a parent leave, in 
addition to the leave required by the Family and Medical Leave Act of 
1993, for the birth of a child, such employer shall provide the same 
leave to an employee who is a parent for an adopted child or a foster 
child. For purposes of enforcement such additional leave shall be 
considered leave required to be provided under section 102 of such Act.

                  TITLE IV--ECONOMIC SELF-SUFFICIENCY

                Subtitle A--Child Support Responsibility

SEC. 41001. REFERENCE TO SOCIAL SECURITY ACT.

    Except as otherwise specifically provided, wherever in this 
subtitle 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.

CHAPTER 1--ELIGIBILITY AND OTHER MATTERS CONCERNING TITLE IV-D PROGRAM 
                                CLIENTS

SEC. 41101. STATE OBLIGATION TO PROVIDE PATERNITY ESTABLISHMENT AND 
              CHILD SUPPORT ENFORCEMENT SERVICES.

    (a) State Law Requirements.--Section 466(a) (42 U.S.C. 666(a)) is 
amended by adding at the end the following new paragraph:
            ``(12) Use of central case registry and centralized 
        collections unit.--Procedures under which--
                    ``(A) every child support order established or 
                modified in the State on or after October 1, 1998, is 
                recorded in the central case registry established in 
                accordance with section 454A(e); and
                    ``(B) child support payments are collected through 
                the centralized collections unit established in 
                accordance with section 454B--
                            ``(i) on and after October 1, 1998, under 
                        each order subject to wage withholding under 
                        section 466(b); and
                            ``(ii) on and after October 1, 1999, under 
                        each other order required to be recorded in 
                        such central case registry under this paragraph 
                        or section 454A(e), except as provided in 
                        subparagraph (C); and
                    ``(C)(i) parties subject to a child support order 
                described in subparagraph (B)(ii) may opt out of the 
                procedure for payment of support through the 
                centralized collections unit (but not the procedure for 
                inclusion in the central case registry) by filing with 
                the State agency a written agreement, signed by both 
                parties, to an alternative payment procedure; and
                    ``(ii) an agreement described in clause (i) becomes 
                void whenever either party advises the State agency of 
                an intent to vacate the agreement.''.
    (b) State Plan Requirements.--Section 454 (42 U.S.C. 654) is 
amended--
            (1) by striking paragraph (4) and inserting the following:
            ``(4) provide that such State will undertake--
                    ``(A) to provide appropriate services under this 
                part to--
                            ``(i) each child with respect to whom an 
                        assignment is effective under section 
                        402(a)(26), 471(a)(17), or 1912 (except in 
                        cases where the State agency determines, in 
                        accordance with paragraph (25), that it is 
                        against the best interests of the child to do 
                        so); and
                            ``(ii) each child not described in clause 
                        (i)--
                                    ``(I) with respect to whom an 
                                individual applies for such services; 
                                and
                                    ``(II) (on and after October 1, 
                                1998) each child with respect to whom a 
                                support order is recorded in the 
                                central State case registry established 
                                under section 454A, regardless of 
                                whether application is made for 
                                services under this part; and
                    ``(B) to enforce the support obligation established 
                with respect to the custodial parent of a child 
                described in subparagraph (A) unless the parties to the 
                order which establishes the support obligation have 
                opted, in accordance with section 466(a)(12)(C), for an 
                alternative payment procedure.''; and
            (2) in paragraph (6)--
                    (A) by striking subparagraph (A) and inserting the 
                following:
                    ``(A) services under the State plan shall be made 
                available to nonresidents on the same terms as to 
                residents;'';
                    (B) in subparagraph (B)--
                            (i) by inserting ``on individuals not 
                        receiving assistance under part A'' after 
                        ``such services shall be imposed''; and
                            (ii) by inserting ``but no fees or costs 
                        shall be imposed on any absent or custodial 
                        parent or other individual for inclusion in the 
                        central State registry maintained pursuant to 
                        section 454A(e)''; and
                    (C) in each of subparagraphs (B), (C), and (D)--
                            (i) by indenting such subparagraph and 
                        aligning its left margin with the left margin 
                        of subparagraph (A); and
                            (ii) by striking the final comma and 
                        inserting a semicolon.
    (c) Conforming Amendments.--
            (1) Section 452(g)(2)(A) (42 U.S.C. 652(g)(2)(A)) is 
        amended by striking ``454(6)'' each place it appears and 
        inserting ``454(4)(A)(ii)''.
            (2) Section 454(23) (42 U.S.C. 654(23)) is amended, 
        effective October 1, 1998, by striking ``information as to any 
        application fees for such services and''.
            (3) Section 466(a)(3)(B) (42 U.S.C. 666(a)(3)(B)) is 
        amended by striking ``in the case of overdue support which a 
        State has agreed to collect under section 454(6)'' and 
        inserting ``in any other case''.
            (4) Section 466(e) (42 U.S.C. 666(e)) is amended by 
        striking ``or (6)''.

SEC. 41102. DISTRIBUTION OF PAYMENTS.

    (a) Distributions Through State Child Support Enforcement Agency to 
Former Assistance Recipients.--Section 454(5) (42 U.S.C. 654(5)) is 
amended--
            (1) in subparagraph (A)--
                    (A) by inserting ``except as otherwise specifically 
                provided in section 464 or 466(a)(3),'' after ``is 
                effective,''; and
                    (B) by striking ``except that'' and all that 
                follows through the semicolon; and
            (2) in subparagraph (B), by striking ``, except'' and all 
        that follows through ``medical assistance''.
    (b) Distribution to a Family Currently Receiving AFDC.--Section 457 
(42 U.S.C. 657) is amended--
            (1) by striking subsection (a) and redesignating subsection 
        (b) as subsection (a);
            (2) in subsection (a), as redesignated--
                    (A) in the matter preceding paragraph (2), to read 
                as follows:
    ``(a) In the Case of a Family Receiving AFDC.--Amounts collected 
under this part during any month as support of a child who is receiving 
assistance under part A (or a parent or caretaker relative of such a 
child) shall (except in the case of a State exercising the option under 
subsection (b)) be distributed as follows:
            ``(1) an amount equal to the amount that will be 
        disregarded pursuant to section 402(a)(8)(A)(vi) shall be taken 
        from each of--
                    ``(A) amounts received in a month which represent 
                payments for that month; and
                    ``(B) amounts received in a month which represent 
                payments for a prior month which were made by the 
                absent parent in the month when due;
        and shall be paid to the family without affecting its 
        eligibility for assistance or decreasing any amount otherwise 
        payable as assistance to such family during such month;'';
                    (B) in paragraph (4), by striking ``or (B)'' and 
                all that follows and inserting ``; then (B) from any 
                remainder, amounts equal to arrearages of such support 
                obligations assigned, pursuant to part A, to any other 
                State or States shall be paid to such other State or 
                States and used to pay any such arrearages (with 
                appropriate reimbursement of the Federal Government to 
                the extent of its participation in the financing); and 
                then (C) any remainder shall be paid to the family.''.
            (3) by inserting after subsection (a), as redesignated, the 
        following new subsection:
    ``(b) Alternative Distribution in Case of Family Receiving AFDC.--
In the case of a State electing the option under this subsection, 
amounts collected as described in subsection (a) shall be distributed 
as follows:
            ``(1) an amount equal to the amount that will be 
        disregarded pursuant to section 402(a)(8)(A)(vi) shall be taken 
        from each of--
                    ``(A) amounts received in a month which represent 
                payments for that month; and
                    ``(B) amounts received in a month which represent 
                payments for a prior month which were made by the 
                absent parent in the month when due;
        and shall be paid to the family without affecting its 
        eligibility for assistance or decreasing any amount otherwise 
        payable as assistance to such family during such month;
            ``(2) second, from any remainder, amounts equal to the 
        balance of support owed for the current month shall be paid to 
        the family;
            ``(3) third, from any remainder, amounts equal to 
        arrearages of such support obligations assigned, pursuant to 
        part A, to the State making the collection shall be retained 
        and used by such State to pay any such arrearages (with 
        appropriate reimbursement of the Federal Government to the 
        extent of its participation in the financing);
            ``(4) fourth, from any remainder, amounts equal to 
        arrearages of such support obligations assigned, pursuant to 
        part A, to any other State or States shall be paid to such 
        other State or States and used to pay any such arrearages (with 
        appropriate reimbursement of the Federal Government to the 
        extent of its participation in the financing); and
            ``(5) fifth, any remainder shall be paid to the family.''.
    (c) Distribution to a Family Not Receiving AFDC.--
            (1) In general.--Section 457(c) (42 U.S.C. 657(c)) is 
        amended to read as follows:
    ``(c) In Case of Family Not Receiving AFDC.--Amounts collected by a 
State agency under this part during any month as support of a child who 
is not receiving assistance under part A (or of a parent or caretaker 
relative of such a child) shall (subject to the remaining provisions of 
this section) be distributed as follows:
            ``(1) first, amounts equal to the total of such support 
        owed for such month shall be paid to the family;
            ``(2) second, from any remainder, amounts equal to 
        arrearages of such support obligations for months during which 
        such child did not receive assistance under part A shall be 
        paid to the family;
            ``(3) third, from any remainder, amounts equal to 
        arrearages of such support obligations assigned to the State 
        making the collection pursuant to part A shall be retained and 
        used by such State to pay any such arrearages (with appropriate 
        reimbursement of the Federal Government to the extent of its 
        participation in the financing);
            ``(4) fourth, from any remainder, amounts equal to 
        arrearages of such support obligations assigned to any other 
        State pursuant to part A shall be paid to such other State or 
        States, and used to pay such arrearages, in the order in which 
        such arrearages accrued (with appropriate reimbursement of the 
        Federal Government to the extent of its participation in the 
        financing).''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall take effect on October 1, 1999.
    (d) Distribution To A Child Receiving Assistance Under Title IV-
E.--Section 457(d) (42 U.S.C. 657(d)) is amended, in the matter 
preceding paragraph (1), by striking ``Notwithstanding the preceding 
provisions of this section, amounts'' and inserting the following:
    ``(d) In Case of a Child Receiving Assistance Under Title IV-E.--
Amounts''.
    (e) Regulations.--The Secretary of Health and Human Services shall 
promulgate regulations--
            (1) under part D of title IV of the Social Security Act, 
        establishing a uniform nationwide standard for allocation of 
child support collections from an obligor owing support to more than 
one family; and
            (2) under part A of such title, establishing standards 
        applicable to States electing the alternative formula under 
        section 457(b) of such Act for distribution of collections on 
        behalf of families receiving Aid to Families with Dependent 
        Children, designed to minimize irregular monthly payments to 
        such families.
    (f) Clerical Amendment.--Section 454 (42 U.S.C. 654) is amended--
            (1) in paragraph (11), by striking ``(11)'' and inserting 
        ``(11)(A)''; and
            (2) by redesignating paragraph (12) as subparagraph (B) of 
        paragraph (11).
    (g) Mandatory Child Support Pass-Through.--
            (1) In general.--Section 402(a)(8)(A)(vi) (42 U.S.C. 
        602(a)(8)(A)(vi)) is amended--
                    (A) by striking ``$50'' each place such term 
                appears and inserting ``$50, or, if greater, $50 
                adjusted by the CPI (as prescribed in section 
                406(i));''; and
                    (B) by striking the semicolon at the end and 
                inserting ``or, in lieu of each dollar amount specified 
                in this clause, such greater amount as the State may 
                choose (and provide for in its State plan);''.
            (2) CPI adjustment.--Section 406 (42 U.S.C. 606) is amended 
        by adding at the end the following:
    ``(i) For purposes of this part, an amount is `adjusted by the CPI' 
for any month in a calendar year by multiplying the amount involved by 
the ratio of--
            ``(1) the Consumer Price Index (as prepared by the 
        Department of Labor) for the third quarter of the preceding 
        calendar year, to
            ``(2) such Consumer Price Index for the third quarter of 
        calendar year 1996,
and rounding the product, if not a multiple of $10, to the nearer 
multiple of $10.''.

SEC. 41103. DUE PROCESS RIGHTS.

    (a) In General.--Section 454 (42 U.S.C. 654), as amended by section 
41102(f) of this subtitle, is amended by inserting after paragraph (11) 
the following new paragraph:
            ``(12) provide for procedures to ensure that--
                    ``(A) individuals who are applying for or receiving 
                services under this part, or are parties to cases in 
                which services are being provided under this part--
                            ``(i) receive notice of all proceedings in 
                        which support obligations might be established 
                        or modified; and
                            ``(ii) receive a copy of any order 
                        establishing or modifying a child support 
                        obligation, or (in the case of a petition for 
                        modification) a notice of determination that 
                        there should be no change in the amount of the 
                        child support award, within 14 days after 
                        issuance of such order or determination;
                    ``(B) individuals applying for or receiving 
                services under this part have access to a fair hearing 
                that meets standards established by the Secretary and 
                ensures prompt consideration and resolution of 
                complaints (but the resort to such procedure shall not 
                stay the enforcement of any support order); and
                    ``(C)(i) individuals adversely affected by the 
                establishment or modification of (or, in the case of a 
                petition for modification, the determination that there 
                should be no change in) a child support order shall be 
                afforded not less than 30 days after the receipt of the 
                order or determination to initiate proceedings to 
                challenge such order or determination; and
                    ``(ii) the State may not provide to any 
                noncustodial parent of a child representation relating 
                to the establishment or modification of an order for 
                the payment of child support with respect to that 
                child, unless the State makes provision for such 
                representation outside the State agency;''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
become effective on October 1, 1997.

SEC. 41104. PRIVACY SAFEGUARDS.

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

             CHAPTER 2--PROGRAM ADMINISTRATION AND FUNDING

SEC. 41201. FEDERAL MATCHING PAYMENTS.

    (a) Increased Base Matching Rate.--Section 455(a)(2) (42 U.S.C. 
655(a)(2)) is amended to read as follows:
            ``(2) The applicable percent for a quarter for purposes of 
        paragraph (1)(A) is--
                    ``(A) for fiscal year 1997, 69 percent,
                    ``(B) for fiscal year 1998, 72 percent, and
                    ``(C) for fiscal year 1999 and succeeding fiscal 
                years, 75 percent.''.
    (b) Maintenance of Effort.--Section 455 (42 U.S.C. 655) is 
amended--
            (1) in subsection (a)(1), in the matter preceding 
        subparagraph (A), by striking ``From'' and inserting ``Subject 
        to subsection (c), from''; and
            (2) by inserting after subsection (b) the following new 
        subsection:
    ``(c) Maintenance of Effort.--Notwithstanding the provisions of 
subsection (a), total expenditures for the State program under this 
part for fiscal year 1997 and each succeeding fiscal year, reduced by 
the percentage specified for such fiscal year under subsection (a)(2) 
(A), (B), or (C)(i), shall not be less than such total expenditures for 
fiscal year 1996, reduced by 66 percent.''.

SEC. 41202. PERFORMANCE-BASED INCENTIVES AND PENALTIES.

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

                ``incentive adjustments to matching rate

    ``Sec. 458. (a) Incentive Adjustment.--(1) In General.--In order to 
encourage and reward State child support enforcement programs which 
perform in an effective manner, the Federal matching rate for payments 
to a State under section 455(a)(1)(A), for each fiscal year beginning 
on or after October 1, 1998, shall be increased by a factor reflecting 
the sum of the applicable incentive adjustments (if any) determined in 
accordance with regulations under this section with respect to 
Statewide paternity establishment and to overall performance in child 
support enforcement.
    ``(2) Standards.--(A) In General.--The Secretary shall specify in 
regulations--
            ``(i) the levels of accomplishment, and rates of 
        improvement as alternatives to such levels, which States must 
        attain to qualify for incentive adjustments under this section; 
        and
            ``(ii) the amounts of incentive adjustment that shall be 
        awarded to States achieving specified accomplishment or 
        improvement levels, which amounts shall be graduated, ranging 
        up to--
                    ``(I) 5 percentage points, in connection with 
                Statewide paternity establishment; and
                    ``(II) 10 percentage points, in connection with 
                overall performance in child support enforcement.
    ``(B) Limitation.--In setting performance standards pursuant to 
subparagraph (A)(i) and adjustment amounts pursuant to subparagraph 
(A)(ii), the Secretary shall ensure that the aggregate number of 
percentage point increases as incentive adjustments to all States do 
not exceed such aggregate increases as assumed by the Secretary in 
estimates of the cost of this section as of June 1995, unless the 
aggregate performance of all States exceeds the projected aggregate 
performance of all States in such cost estimates.
    ``(3) Determination of Incentive Adjustment.--The Secretary shall 
determine the amount (if any) of incentive adjustment due each State on 
the basis of the data submitted by the State pursuant to section 
454(15)(B) concerning the levels of accomplishment (and rates of 
improvement) with respect to performance indicators specified by the 
Secretary pursuant to this section.
    ``(4) Fiscal Year Subject to Incentive Adjustment.--The total 
percentage point increase determined pursuant to this section with 
respect to a State program in a fiscal year shall apply as an 
adjustment to the applicable percent under section 455(a)(2) for 
payments to such State for the succeeding fiscal year.
    ``(5) Recycling of Incentive Adjustment.--A State shall expend in 
the State program under this part all funds paid to the State by the 
Federal Government as a result of an incentive adjustment under this 
section.
    ``(b) Meaning of Terms.--For purposes of this section--
            ``(1) the term `Statewide paternity establishment 
        percentage' means, with respect to a fiscal year, the ratio 
        (expressed as a percentage) of--
                    ``(A) the total number of out-of-wedlock children 
                in the State under one year of age for whom paternity 
                is established or acknowledged during the fiscal year, 
                to
                    ``(B) the total number of children born out of 
                wedlock in the State during such fiscal year; and
            ``(2) the term `overall performance in child support 
        enforcement' means a measure or measures of the effectiveness 
        of the State agency in a fiscal year which takes into account 
        factors including--
                    ``(A) the percentage of cases requiring a child 
                support order in which such an order was established;
                    ``(B) the percentage of cases in which child 
                support is being paid;
                    ``(C) the ratio of child support collected to child 
                support due; and
                    ``(D) the cost-effectiveness of the State program, 
                as determined in accordance with standards established 
                by the Secretary in regulations.''.
    (b) Adjustment of Payments Under Part D of Title IV.--Section 
455(a)(2) (42 U.S.C. 655(a)(2)), as amended by section 41201(a) of this 
subtitle, is amended--
            (1) by striking the period at the end of subparagraph 
        (C)(ii) and inserting a comma; and
            (2) by adding after and below subparagraph (C), flush with 
        the left margin of the subsection, the following:
``increased by the incentive adjustment factor (if any) determined by 
the Secretary pursuant to section 458.''.
    (c) Conforming Amendments.--Section 454(22) (42 U.S.C. 654(22)) is 
amended--
            (1) by striking ``incentive payments'' the first place it 
        appears and inserting ``incentive adjustments''; and
            (2) by striking ``any such incentive payments made to the 
        State for such period'' and inserting ``any increases in 
        Federal payments to the State resulting from such incentive 
        adjustments''.
    (d) Calculation of IV-D Paternity Establishment Percentage.--(1) 
Section 452(g)(1) (42 U.S.C. 652(g)(1)) is amended in the matter 
preceding subparagraph (A) by inserting ``its overall performance in 
child support enforcement is satisfactory (as defined in section 458(b) 
and regulations of the Secretary), and'' after ``1994,''.
    (2) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is amended--
            (A) in subparagraph (A), in the matter preceding clause 
        (i)--
                    (i) by striking ``paternity establishment 
                percentage'' and inserting ``IV-D paternity 
                establishment percentage''; and
                    (ii) by striking ``(or all States, as the case may 
                be)'';
            (B) in subparagraph (A)(i), by striking ``during the fiscal 
        year'';
            (C) in subparagraph (A)(ii)(I), by striking ``as of the end 
        of the fiscal year'' and inserting ``in the fiscal year or, at 
        the option of the State, as of the end of such year'';
            (D) in subparagraph (A)(ii)(II), by striking ``or (E) as of 
        the end of the fiscal year'' and inserting ``in the fiscal year 
        or, at the option of the State, as of the end of such year'';
            (E) in subparagraph (A)(iii)--
                    (i) by striking ``during the fiscal year''; and
                    (ii) by striking ``and'' at the end; and
            (F) in the matter following subparagraph (A)--
                    (i) by striking ``who were born out of wedlock 
                during the immediately preceding fiscal year'' and 
                inserting ``born out of wedlock'';
                    (ii) by striking ``such preceding fiscal year'' 
                both places it appears and inserting ``the preceding 
                fiscal year''; and
                    (iii) by striking ``or (E)'' the second place it 
                appears.
    (3) Section 452(g)(3) (42 U.S.C. 652(g)(3)) is amended--
            (A) by striking subparagraph (A) and redesignating 
        subparagraphs (B) and (C) as subparagraphs (A) and (B), 
        respectively;
            (B) in subparagraph (A), as redesignated, by striking ``the 
        percentage of children born out-of-wedlock in the State'' and 
        inserting ``the percentage of children in the State who are 
        born out of wedlock or for whom support has not been 
        established''; and
            (C) in subparagraph (B), as redesignated--
                    (i) by inserting ``and overall performance in child 
                support enforcement'' after ``paternity establishment 
                percentages''; and
                    (ii) by inserting ``and securing support'' before 
                the period.
    (e) Reduction of Payments Under Part D of Title IV.--
            (1) New requirements.--Section 455 (42 U.S.C. 655) is 
        amended by inserting after subsection (b) the following:
    ``(c)(1) If the Secretary finds, with respect to a State program 
under this part in a fiscal year beginning on or after October 1, 
1997--
            ``(A)(i) on the basis of data submitted by a State pursuant 
        to section 454(15)(B), that the State program in such fiscal 
        year failed to achieve the IV-D paternity establishment 
        percentage (as defined in section 452(g)(2)(A)) or the 
        appropriate level of overall performance in child support 
        enforcement (as defined in section 458(b)(2)), or to meet other 
        performance measures that may be established by the Secretary, 
        or
            ``(ii) on the basis of an audit or audits of such State 
        data conducted pursuant to section 452(a)(4)(C), that the State 
        data submitted pursuant to section 454(15)(B) is incomplete or 
        unreliable; and
            ``(B) that, with respect to the succeeding fiscal year--
                    ``(i) the State failed to take sufficient 
                corrective action to achieve the appropriate 
                performance levels as described in subparagraph (A)(i) 
                of this paragraph, or
                    ``(ii) the data submitted by the State pursuant to 
                section 454(15)(B) is incomplete or unreliable,
the amounts otherwise payable to the State under this part for quarters 
following the end of such succeeding fiscal year, prior to quarters 
following the end of the first quarter throughout which the State 
program is in compliance with such performance requirement, shall be 
reduced by the percentage specified in paragraph (2).
    ``(2) The reductions required under paragraph (1) shall be--
            ``(A) not less than 6 nor more than 8 percent, or
            ``(B) not less than 8 nor more than 12 percent, if the 
        finding is the second consecutive finding made pursuant to 
        paragraph (1), or
            ``(C) not less than 12 nor more than 15 percent, if the 
        finding is the third or a subsequent consecutive such finding.
    ``(3) For purposes of this subsection, section 402(a)(27), and 
section 452(a)(4), a State which is determined as a result of an audit 
to have submitted incomplete or unreliable data pursuant to section 
454(15)(B), shall be determined to have submitted adequate data if the 
Secretary determines that the extent of the incompleteness or 
unreliability of the data is of a technical nature which does not 
adversely affect the determination of the level of the State's 
performance.''.
            (2) Conforming amendments.--
                    (A) Section 403 (42 U.S.C. 603) is amended by 
                striking subsection (h).
                    (B) Section 452(a)(4) (42 U.S.C. 652(a)(4)) is 
                amended by striking ``403(h)'' each place such term 
                appears and inserting ``455(c)''.
                    (C) Subsections (d)(3)(A), (g)(1), and (g)(3)(A) of 
                section 452 (42 U.S.C. 652) are each amended by 
                striking ``403(h)'' and inserting ``455(c)''.
    (f) Effective Dates.--
            (1) Incentive adjustments.--(A) The amendments made by 
        subsections (a), (b), and (c) shall become effective October 1, 
        1997, except to the extent provided in subparagraph (B).
            (B) Section 458 of the Social Security Act, as in effect 
        prior to the enactment of this section, shall be effective for 
        purposes of incentive payments to States for fiscal years prior 
        to fiscal year 1999.
            (2) Penalty reductions.--(A) The amendments made by 
        subsection (d) shall become effective with respect to calendar 
        quarters beginning on and after the date of enactment of this 
        subtitle.
            (B) The amendments made by subsection (e) shall become 
        effective with respect to calendar quarters beginning on and 
        after the date one year after the date of enactment of this 
        subtitle.

SEC. 41203. FEDERAL AND STATE REVIEWS AND AUDITS.

    (a) State Agency Activities.--Section 454 (42 U.S.C. 654) is 
amended--
            (1) in paragraph (14), by striking ``(14)'' and inserting 
        ``(14)(A)'';
            (2) by redesignating paragraph (15) as subparagraph (B) of 
        paragraph (14); and
            (3) by inserting after paragraph (14) the following new 
        paragraph:
            ``(15) provide for--
                    ``(A) a process for annual reviews of and reports 
                to the Secretary on the State program under this part, 
                which shall include such information as may be 
                necessary to measure State compliance with Federal 
                requirements for expedited procedures and timely case 
                processing, using such standards and procedures as are 
                required by the Secretary, under which the State agency 
                will determine the extent to which such program is in 
                conformity with applicable requirements with respect to 
                the operation of State programs under this part 
                (including the status of complaints filed under the 
                procedure required under paragraph (12)(B)); and
                    ``(B) a process of extracting from the State 
                automated data processing system and transmitting to 
                the Secretary data and calculations concerning the 
                levels of accomplishment (and rates of improvement) 
                with respect to applicable performance indicators 
                (including IV-D paternity establishment percentages and 
                overall performance in child support enforcement) to 
                the extent necessary for purposes of sections 452(g) 
                and 458.''.
    (b) Federal Activities.--Section 452(a)(4) (42 U.S.C. 652(a)(4)) is 
amended to read as follows:
            ``(4)(A) review data and calculations transmitted by State 
        agencies pursuant to section 454(15)(B) on State program 
        accomplishments with respect to performance indicators for 
        purposes of section 452(g) and 458, and determine the amount 
        (if any) of penalty reductions pursuant to section 455(c) to be 
        applied to the State;
            ``(B) review annual reports by State agencies pursuant to 
        section 454(15)(A) on State program conformity with Federal 
        requirements; evaluate any elements of a State program in which 
        significant deficiencies are indicated by such report on the 
        status of complaints under the State procedure under section 
        454(12)(B); and, as appropriate, provide to the State agency 
        comments, recommendations for additional or alternative 
        corrective actions, and technical assistance; and
            ``(C) conduct audits, in accordance with the government 
        auditing standards of the United States Comptroller General--
                    ``(i) at least once every 3 years (or more 
                frequently, in the case of a State which fails to meet 
                requirements of this part, or of regulations 
                implementing such requirements, concerning performance 
                standards and reliability of program data) to assess 
                the completeness, reliability, and security of the 
                data, and the accuracy of the reporting systems, used 
                for the calculations of performance indicators 
                specified in subsection (g) and section 458;
                    ``(ii) of the adequacy of financial management of 
                the State program, including assessments of--
                            ``(I) whether Federal and other funds made 
                        available to carry out the State program under 
                        this part are being appropriately expended, and 
                        are properly and fully accounted for; and
                            ``(II) whether collections and 
                        disbursements of support payments and program 
                        income are carried out correctly and are 
                        properly and fully accounted for; and
                    ``(iii) for such other purposes as the Secretary 
                may find necessary;''.
    (c) Effective Date.--The amendments made by this section shall be 
effective with respect to calendar quarters beginning on or after the 
date one year after enactment of this section.

SEC. 41204. REQUIRED REPORTING PROCEDURES.

    (a) Establishment.--Section 452(a)(5) (42 U.S.C. 652(a)(5)) is 
amended by inserting ``, and establish procedures to be followed by 
States for collecting and reporting information required to be provided 
under this part, and establish uniform definitions (including those 
necessary to enable the measurement of State compliance with the 
requirements of this part relating to expedited processes and timely 
case processing) to be applied in following such procedures'' before 
the semicolon.
    (b) State Plan Requirement.--Section 454 (42 U.S.C. 654), as 
amended by section 41104(a) of this subtitle, is amended--
            (1) by striking ``and'' at the end of paragraph (24);
            (2) by striking the period at the end of paragraph (25) and 
        inserting ``; and''; and
            (3) by adding after paragraph (25) the following:
            ``(26) provide that the State shall use the definitions 
        established under section 452(a)(5) in collecting and reporting 
        information as required under this part.''.

SEC. 41205. AUTOMATED DATA PROCESSING REQUIREMENTS.

    (a) Revised Requirements.--(1) Section 454(16) (42 U.S.C. 654(16)) 
is amended--
            (A) by striking ``, at the option of the State,'';
            (B) by inserting ``and operation by the State agency'' 
        after ``for the establishment'';
            (C) by inserting ``meeting the requirements of section 
        454A'' after ``information retrieval system'';
            (D) by striking ``in the State and localities thereof, so 
        as (A)'' and inserting ``so as'';
            (E) by striking ``(i)''; and
            (F) by striking ``(including'' and all that follows and 
        inserting a semicolon.
    (2) Part D of title IV (42 U.S.C. 651-669) is amended by inserting 
after section 454 the following new section:

                      ``automated data processing

    ``Sec. 454A. (a) In General.--In order to meet the requirements of 
this section, for purposes of the requirement of section 454(16), a 
State agency shall have in operation a single statewide automated data 
processing and information retrieval system which has the capability to 
perform the tasks specified in this section, and performs such tasks 
with the frequency and in the manner specified in this part or in 
regulations or guidelines of the Secretary.
    ``(b) Program Management.--The automated system required under this 
section shall perform such functions as the Secretary may specify 
relating to management of the program under this part, including--
            ``(1) controlling and accounting for use of Federal, State, 
        and local funds to carry out such program; and
            ``(2) maintaining the data necessary to meet Federal 
        reporting requirements on a timely basis.
    ``(c) Calculation of Performance Indicators.--In order to enable 
the Secretary to determine the incentive and penalty adjustments 
required by sections 452(g) and 458, the State agency shall--
            ``(1) use the automated system--
                    ``(A) to maintain the requisite data on State 
                performance with respect to paternity establishment and 
                child support enforcement in the State; and
                    ``(B) to calculate the IV-D paternity establishment 
                percentage and overall performance in child support 
                enforcement for the State for each fiscal year; and
            ``(2) have in place systems controls to ensure the 
        completeness, and reliability of, and ready access to, the data 
        described in paragraph (1)(A), and the accuracy of the 
        calculations described in paragraph (1)(B).
    ``(d) Information Integrity and Security.--The State agency shall 
have in effect safeguards on the integrity, accuracy, and completeness 
of, access to, and use of data in the automated system required under 
this section, which shall include the following (in addition to such 
other safeguards as the Secretary specifies in regulations):
            ``(1) Policies restricting access.--Written policies 
        concerning access to data by State agency personnel, and 
        sharing of data with other persons, which--
                    ``(A) permit access to and use of data only to the 
                extent necessary to carry out program responsibilities;
                    ``(B) specify the data which may be used for 
                particular program purposes, and the personnel 
                permitted access to such data; and
                    ``(C) ensure that data obtained or disclosed for a 
                limited program purpose is not used or redisclosed for 
                another, impermissible purpose.
            ``(2) Systems controls.--Systems controls (such as 
        passwords or blocking of fields) to ensure strict adherence to 
        the policies specified under paragraph (1).
            ``(3) Monitoring of access.--Routine monitoring of access 
        to and use of the automated system, through methods such as 
        audit trails and feedback mechanisms, to guard against and 
        promptly identify unauthorized access or use.
            ``(4) Training and information.--The State agency shall 
        have in effect procedures to ensure that all personnel 
        (including State and local agency staff and contractors) who 
        may have access to or be required to use sensitive or 
        confidential program data are fully informed of applicable 
        requirements and penalties, and are adequately trained in 
        security procedures.
            ``(5) Penalties.--The State agency shall have in effect 
        administrative penalties (up to and including dismissal from 
        employment) for unauthorized access to, or disclosure or use 
        of, confidential data.''.
    (3) Regulations.--Section 452 (42 U.S.C. 652) is amended by adding 
at the end the following:
    ``(j) The Secretary shall prescribe final regulations for 
implementation of the requirements of section 454A not later than 2 
years after the date of the enactment of this subsection.''.
    (4) Implementation Timetable.--Section 454(24) (42 U.S.C. 654(24)), 
as amended by sections 41104(a)(2) and 41204(b)(1) of this subtitle, is 
amended to read as follows:
            ``(24) provide that the State will have in effect an 
        automated data processing and information retrieval system--
                    ``(A) by October 1, 1995, meeting all requirements 
                of this part which were enacted on or before the date 
                of enactment of the Family Support Act of 1988; and
                    ``(B) by October 1, 1999, meeting all requirements 
                of this part enacted on or before the date of enactment 
                of the Economic Equity Act of 1996 (but this provision 
                shall not be construed to alter earlier deadlines 
                specified for elements of such system), except that 
                such deadline shall be extended by 1 day for each day 
                (if any) by which the Secretary fails to meet the 
                deadline imposed by section 452(j);''.
    (b) Special Federal Matching Rate for Development Costs of 
Automated Systems.--Section 455(a) (42 U.S.C. 655(a)) is amended--
            (1) in paragraph (1)(B)--
                    (A) by striking ``90 percent'' and inserting ``the 
                percent specified in paragraph (3)'';
                    (B) by striking ``so much of''; and
                    (C) by striking ``which the Secretary'' and all 
                that follows and inserting ``, and''; and
            (2) by adding at the end the following new paragraph:
    ``(3)(A) The Secretary shall pay to each State, for each quarter in 
fiscal year 1996, 90 percent of so much of State expenditures described 
in subparagraph (1)(B) as the Secretary finds are for a system meeting 
the requirements specified in section 454(16), or meeting such 
requirements without regard to clause (D) thereof.
    ``(B)(i) The Secretary shall pay to each State, for each quarter in 
fiscal years 1997 through 2001, the percentage specified in clause (ii) 
of so much of State expenditures described in subparagraph (1)(B) as 
the Secretary finds are for a system meeting the requirements specified 
in section 454(16) and 454A, subject to clause (iii).
    ``(ii) The percentage specified in this clause, for purposes of 
clause (i), is the higher of--
            ``(I) 80 percent, or
            ``(II) the percentage otherwise applicable to Federal 
        payments to the State under subparagraph (A) (as adjusted 
        pursuant to section 458).''.
    (c) Conforming Amendment.--Section 123(c) of the Family Support Act 
of 1988 (102 Stat. 2352; Public Law 100-485) is repealed.
    (d) Additional Provisions.--For additional provisions of section 
454A, as added by subsection (a) of this section, see the amendments 
made by sections 121, 122(c), and 133(d) of this subtitle.

SEC. 41206. DIRECTOR OF CSE PROGRAM; STAFFING STUDY.

    (a) Reporting to Secretary.--Section 452(a) (42 U.S.C. 652(a)) is 
amended in the matter preceding paragraph (1) by striking ``directly''.
    (b) Staffing Studies.--
            (1) Scope.--The Secretary of Health and Human Services 
        shall, directly or by contract, conduct studies of the staffing 
        of each State child support enforcement program under part D of 
        title IV of the Social Security Act. Such studies shall include 
        a review of the staffing needs created by requirements for 
        automated data processing, maintenance of a central case 
        registry and centralized collections of child support, and of 
        changes in these needs resulting from changes in such 
        requirements. Such studies shall examine and report on 
        effective staffing practices used by the States and on 
        recommended staffing procedures.
            (2) Frequency of studies.--The Secretary shall complete the 
        first staffing study required under paragraph (1) by October 1, 
        1997, and may conduct additional studies subsequently at 
        appropriate intervals.
            (3) Report to the congress.--The Secretary shall submit a 
        report to the Congress stating the findings and conclusions of 
        each study conducted under this subsection.

SEC. 41207. FUNDING FOR SECRETARIAL ASSISTANCE TO STATE PROGRAMS.

    Section 452 (42 U.S.C. 652), as amended by section 41205(a)(3) of 
this subtitle, is amended by adding at the end the following new 
subsection:
    ``(k) Funding for Federal Activities Assisting State Programs.--(1) 
There shall be available to the Secretary, from amounts appropriated 
for fiscal year 1996 and each succeeding fiscal year for payments to 
States under this part, the amount specified in paragraph (2) for the 
costs to the Secretary for--
            ``(A) information dissemination and technical assistance to 
        States, training of State and Federal staff, staffing studies, 
        and related activities needed to improve programs (including 
        technical assistance concerning State automated systems);
            ``(B) research, demonstration, and special projects of 
        regional or national significance relating to the operation of 
        State programs under this part; and
            ``(C) operation of the Federal Parent Locator Service under 
        section 453, to the extent such costs are not recovered through 
        user fees.
    ``(2) The amount specified in this paragraph for a fiscal year is 
the amount equal to a percentage of the reduction in Federal payments 
to States under part A on account of child support (including 
arrearages) collected in the preceding fiscal year on behalf of 
children receiving aid under such part A in such preceding fiscal year 
(as determined on the basis of the most recent reliable data available 
to the Secretary as of the end of the third calendar quarter following 
the end of such preceding fiscal year), equal to--
            ``(A) 1 percent, for the activities specified in 
        subparagraphs (A) and (B) of paragraph (1); and
            ``(B) 2 percent, for the activities specified in 
        subparagraph (C) of paragraph (1).''.

SEC. 41208. REPORTS AND DATA COLLECTION BY THE SECRETARY.

    (a) Annual Report to Congress.--(1) Section 452(a)(10)(A) (42 
U.S.C. 652(a)(10)(A)) is amended--
            (A) by striking ``this part;'' and inserting ``this part, 
        including--''; and
            (B) by adding at the end the following indented clauses:
                            ``(i) the total amount of child support 
                        payments collected as a result of services 
                        furnished during such fiscal year to 
                        individuals receiving services under this part;
                            ``(ii) the cost to the States and to the 
                        Federal Government of furnishing such services 
                        to those individuals; and
                            ``(iii) the number of cases involving 
                        families--
                                    ``(I) who became ineligible for aid 
                                under part A during a month in such 
                                fiscal year; and
                                    ``(II) with respect to whom a child 
                                support payment was received in the 
                                same month;''.
    (2) Section 452(a)(10)(C) (42 U.S.C. 652(a)(10)(C)) is amended--
            (A) in the matter preceding clause (i)--
                    (i) by striking ``with the data required under each 
                clause being separately stated for cases'' and 
                inserting ``separately stated for (1) cases'';
                    (ii) by striking ``cases where the child was 
                formerly receiving'' and inserting ``or formerly 
                received'';
                    (iii) by inserting ``or 1912'' after 
                ``471(a)(17)''; and
                    (iv) by inserting ``(2)'' before ``all other'';
            (B) in each of clauses (i) and (ii), by striking ``, and 
        the total amount of such obligations'';
            (C) in clause (iii), by striking ``described in'' and all 
        that follows and inserting ``in which support was collected 
        during the fiscal year;'';
            (D) by striking clause (iv); and
            (E) by redesignating clause (v) as clause (vii), and 
        inserting after clause (iii) the following new clauses:
                            ``(iv) the total amount of support 
                        collected during such fiscal year and 
                        distributed as current support;
                            ``(v) the total amount of support collected 
                        during such fiscal year and distributed as 
                        arrearages;
                            ``(vi) the total amount of support due and 
                        unpaid for all fiscal years; and''.
    (3) Section 452(a)(10)(G) (42 U.S.C. 652(a)(10)(G)) is amended by 
striking ``on the use of Federal courts and''.
    (4) Section 452(a)(10) (42 U.S.C. 652(a)(10)) is amended by 
striking all that follows subparagraph (I).
    (b) Data Collection and Reporting.--Section 469 (42 U.S.C. 669) is 
amended--
            (1) by striking subsections (a) and (b) and inserting the 
        following:
    ``(a) The Secretary shall collect and maintain, on a fiscal year 
basis, up-to-date statistics, by State, with respect to services to 
establish paternity and services to establish child support 
obligations, the data specified in subsection (b), separately stated, 
in the case of each such service, with respect to--
            ``(1) families (or dependent children) receiving aid under 
        plans approved under part A (or E); and
            ``(2) families not receiving such aid.
    ``(b) The data referred to in subsection (a) are--
            ``(1) the number of cases in the caseload of the State 
        agency administering the plan under this part in which such 
        service is needed; and
            ``(2) the number of such cases in which the service has 
        been provided.''; and
            (2) in subsection (c), by striking ``(a)(2)'' and inserting 
        ``(b)(2)''.
    (c) Effective Date.--The amendments made by this section shall be 
effective with respect to fiscal year 1996 and succeeding fiscal years.

                  CHAPTER 3--LOCATE AND CASE TRACKING

SEC. 41301. CENTRAL STATE AND CASE REGISTRY.

    Section 454A, as added by section 41205(a)(2) of this subtitle, is 
amended by adding at the end the following:
    ``(e) Central Case Registry.--(1) In General.--The automated system 
required under this section shall perform the functions, in accordance 
with the provisions of this subsection, of a single central registry 
containing records with respect to each case in which services are 
being provided by the State agency (including, on and after October 1, 
1998, each order specified in section 466(a)(12)), using such 
standardized data elements (such as names, social security numbers or 
other uniform identification numbers, dates of birth, and case 
identification numbers), and containing such other information (such as 
information on case status) as the Secretary may require.
    ``(2) Payment Records.--Each case record in the central registry 
shall include a record of--
            ``(A) the amount of monthly (or other periodic) support 
        owed under the support order, and other amounts due or overdue 
        (including arrears, interest or late payment penalties, and 
        fees);
            ``(B) the date on which or circumstances under which the 
        support obligation will terminate under such order;
            ``(C) all child support and related amounts collected 
        (including such amounts as fees, late payment penalties, and 
        interest on arrearages);
            ``(D) the distribution of such amounts collected; and
            ``(E) the birth date of the child for whom the child 
        support order is entered.
    ``(3) Updating and Monitoring.--The State agency shall promptly 
establish and maintain, and regularly monitor, case records in the 
registry required by this subsection, on the basis of--
            ``(A) information on administrative actions and 
        administrative and judicial proceedings and orders relating to 
        paternity and support;
            ``(B) information obtained from matches with Federal, 
        State, or local data sources;
            ``(C) information on support collections and distributions; 
        and
            ``(D) any other relevant information.
    ``(f) Data Matches and Other Disclosures of Information.--The 
automated system required under this section shall have the capacity, 
and be used by the State agency, to extract data at such times, and in 
such standardized format or formats, as may be required by the 
Secretary, and to share and match data with, and receive data from, 
other data bases and data matching services, in order to obtain (or 
provide) information necessary to enable the State agency (or Secretary 
or other State or Federal agencies) to carry out responsibilities under 
this part. Data matching activities of the State agency shall include 
at least the following:
            ``(1) Data bank of child support orders.--Furnish to the 
        Data Bank of Child Support Orders established under section 
        453(h) (and update as necessary, with information including 
        notice of expiration of orders) minimal information (to be 
        specified by the Secretary) on each child support case in the 
        central case registry.
            ``(2) Federal parent locator service.--Exchange data with 
        the Federal Parent Locator Service for the purposes specified 
        in section 453.
            ``(3) AFDC and medicaid agencies.--Exchange data with State 
        agencies (of the State and of other States) administering the 
        programs under part A and title XIX, as necessary for the 
        performance of State agency responsibilities under this part 
        and under such programs.
            ``(4) Intra- and interstate data matches.--Exchange data 
        with other agencies of the State, agencies of other States, and 
        interstate information networks, as necessary and appropriate 
        to carry out (or assist other States to carry out) the purposes 
        of this part.''.

SEC. 41302. CENTRALIZED COLLECTION AND DISBURSEMENT OF SUPPORT 
              PAYMENTS.

    (a) State Plan Requirement.--Section 454 (42 U.S.C. 654), as 
amended by sections 41104(a) and 41204(b) of this subtitle, is 
amended--
            (1) by striking ``and'' at the end of paragraph (25);
            (2) by striking the period at the end of paragraph (26) and 
        inserting ``; and''; and
            (3) by adding after paragraph (26) the following new 
        paragraph:
            ``(27) provide that the State agency, on and after October 
        1, 1998--
                    ``(A) will operate a centralized, automated unit 
                for the collection and disbursement of child support 
under orders being enforced under this part, in accordance with section 
454B; and
                    ``(B) will have sufficient State staff (consisting 
                of State employees), and (at State option) contractors 
                reporting directly to the State agency to monitor and 
                enforce support collections through such centralized 
                unit, including carrying out the automated data 
                processing responsibilities specified in section 
                454A(g) and to impose, as appropriate in particular 
                cases, the administrative enforcement remedies 
                specified in section 466(c)(1).''.
    (b) Establishment of Centralized Collection Unit.--Part D of title 
IV (42 U.S.C. 651-669) is amended by adding after section 454A the 
following new section:

     ``centralized collection and disbursement of support payments

    ``Sec. 454B. (a) In General.--In order to meet the requirement of 
section 454(27), the State agency must operate a single centralized, 
automated unit for the collection and disbursement of support payments, 
coordinated with the automated data system required under section 454A, 
in accordance with the provisions of this section, which shall be--
            ``(1) operated directly by the State agency (or by two or 
        more State agencies under a regional cooperative agreement), or 
        by a single contractor responsible directly to the State 
        agency; and
            ``(2) used for the collection and disbursement (including 
        interstate collection and disbursement) of payments under 
        support orders in all cases being enforced by the State 
        pursuant to section 454(4).
    ``(b) Required Procedures.--The centralized collections unit shall 
use automated procedures, electronic processes, and computer-driven 
technology to the maximum extent feasible, efficient, and economical, 
for the collection and disbursement of support payments, including 
procedures--
            ``(1) for receipt of payments from parents, employers, and 
        other States, and for disbursements to custodial parents and 
        other obligees, the State agency, and the State agencies of 
        other States;
            ``(2) for accurate identification of payments;
            ``(3) to ensure prompt disbursement of the custodial 
        parent's share of any payment; and
            ``(4) to furnish to either parent, upon request, timely 
        information on the current status of support payments.''.
    (c) Use of Automated System.--Section 454A, as added by section 
41205(a)(2) of this subtitle and as amended by section 41301 of this 
subtitle, is amended by adding at the end the following new subsection:
    ``(g) Centralized Collection and Distribution of Support 
Payments.--The automated system required under this section shall be 
used, to the maximum extent feasible, to assist and facilitate 
collections and disbursement of support payments through the 
centralized collections unit operated pursuant to section 454B, through 
the performance of functions including at a minimum--
            ``(1) generation of orders and notices to employers (and 
        other debtors) for the withholding of wages (and other 
        income)--
                    ``(A) within two working days after receipt (from 
                the directory of New Hires established under section 
                453(i) or any other source) of notice of and the income 
                source subject to such withholding; and
                    ``(B) using uniform formats directed by the 
                Secretary;
            ``(2) ongoing monitoring to promptly identify failures to 
        make timely payment; and
            ``(3) automatic use of enforcement mechanisms (including 
        mechanisms authorized pursuant to section 466(c)) where 
        payments are not timely made.''.
    (d) Effective Date.--The amendments made by this section shall 
become effective on October 1, 1998.

SEC. 41303. AMENDMENTS CONCERNING INCOME WITHHOLDING.

    (a) Mandatory Income Withholding.--(1) Section 466(a)(1) (42 U.S.C. 
666(a)(1)) is amended to read as follows:
            ``(1) Income withholding.--(A) Under orders enforced under 
        the state plan.--Procedures described in subsection (b) for the 
        withholding from income of amounts payable as support in cases 
        subject to enforcement under the State plan.
            ``(B) Under certain orders predating change in 
        requirement.--Procedures under which all child support orders 
        issued (or modified) before October 1, 1996, and which are not 
        otherwise subject to withholding under subsection (b), shall 
        become subject to withholding from wages as provided in 
        subsection (b) if arrearages occur, without the need for a 
        judicial or administrative hearing.''.
    (2) Section 466(a)(8) (42 U.S.C. 666(a)(8)) is repealed.
    (3) Section 466(b) (42 U.S.C. 666(b)) is amended--
            (A) in the matter preceding paragraph (1), by striking 
        ``subsection (a)(1)'' and inserting ``subsection (a)(1)(A)'';
            (B) in paragraph (5), by striking all that follows 
        ``administered by'' and inserting ``the State through the 
        centralized collections unit established pursuant to section 
        454B, in accordance with the requirements of such section 
        454B.'';
            (C) in paragraph (6)(A)(i)--
                    (i) by inserting ``, in accordance with timetables 
                established by the Secretary,'' after ``must be 
                required''; and
                    (ii) by striking ``to the appropriate agency'' and 
                all that follows and inserting ``to the State 
                centralized collections unit within 5 working days 
                after the date such amount would (but for this 
                subsection) have been paid or credited to the employee, 
                for distribution in accordance with this part.'';
            (D) in paragraph (6)(A)(ii), by inserting ``be in a 
        standard format prescribed by the Secretary, and'' after 
        ``shall''; and
            (E) in paragraph (6)(D)--
                    (i) by striking ``employer who discharges'' and 
                inserting ``employer who--(A) discharges'';
                    (ii) by relocating subparagraph (A), as designated, 
                as an indented subparagraph after and below the 
                introductory matter;
                    (iii) by striking the period at the end; and
                    (iv) by adding after and below subparagraph (A) the 
                following new subparagraph:
                    ``(B) fails to withhold support from wages, or to 
                pay such amounts to the State centralized collections 
                unit in accordance with this subsection.''.
    (b) Conforming Amendment.--Section 466(c) (42 U.S.C. 666(c)) is 
repealed.
    (c) Definition of Terms.--The Secretary shall promulgate 
regulations providing definitions, for purposes of part D of title IV 
of the Social Security Act, for the term ``income'' and for such other 
terms relating to income withholding under section 466(b) of such Act 
as the Secretary may find it necessary or advisable to define.

SEC. 41304. LOCATOR INFORMATION FROM INTERSTATE NETWORKS.

    Section 466(a) (42 U.S.C. 666(a)), as amended by section 
41303(a)(2) of this subtitle, is amended by inserting after paragraph 
(7) the following new paragraph:
            ``(8) Locator information from interstate networks.--
        Procedures ensuring that the State will neither provide funding 
        for, nor use for any purpose (including any purpose unrelated 
        to the purposes of this part), any automated interstate network 
        or system used to locate individuals--
                    ``(A) for purposes relating to the use of motor 
                vehicles; or
                    ``(B) providing information for law enforcement 
                purposes (where child support enforcement agencies are 
                otherwise allowed access by State and Federal law),
        unless all Federal and State agencies administering programs 
        under this part (including the entities established under 
        section 453) have access to information in such system or 
        network to the same extent as any other user of such system or 
        network.''.

SEC. 41305. EXPANDED FEDERAL PARENT LOCATOR SERVICE.

    (a) Expanded Authority To Locate Individuals and Assets.--Section 
453 (42 U.S.C. 653) is amended--
            (1) in subsection (a), by striking all that follows 
        ``subsection (c))'' and inserting the following:
``, for the purpose of establishing parentage, establishing, setting 
the amount of, modifying, or enforcing child support obligations--
            ``(1) information on, or facilitating the discovery of, the 
        location of any individual--
                    ``(A) who is under an obligation to pay child 
                support;
                    ``(B) against whom such an obligation is sought; or
                    ``(C) to whom such an obligation is owed, including 
                such individual's social security number (or numbers), 
                most recent residential address, and the name, address, 
                and employer identification number of such individual's 
                employer; and
            ``(2) information on the individual's wages (or other 
        income) from, and benefits of, employment (including rights to 
        or enrollment in group health care coverage); and
            ``(3) information on the type, status, location, and amount 
        of any assets of, or debts owed by or to, any such 
        individual.''; and
            (2) in subsection (b)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``social security'' and all that follows 
                through ``absent parent'' and inserting ``information 
                specified in subsection (a)''; and
                    (B) in paragraph (2), by inserting before the 
                period ``, or from any consumer reporting agency (as 
                defined in section 603(f) of the Fair Credit Reporting 
                Act (15 U.S.C. 1681a(f))'';
            (3) in subsection (e)(1), by inserting before the period 
        ``, or by consumer reporting agencies''.
    (b) Reimbursement for Data From Federal Agencies.--Section 
453(e)(2) (42 U.S.C. 653(e)(2)) is amended in the fourth sentence by 
inserting before the period ``in an amount which the Secretary 
determines to be reasonable payment for the data exchange (which amount 
shall not include payment for the costs of obtaining, compiling, or 
maintaining the data)''.
    (c) Access to Consumer Reports Under Fair Credit Reporting Act.--
(1) Section 608 of the Fair Credit Reporting Act (15 U.S.C. 1681f) is 
amended--
            (A) by striking ``, limited to'' and inserting ``to a 
        governmental agency (including the entire consumer report, in 
        the case of a Federal, State, or local agency administering a 
        program under part D of title IV of the Social Security Act, 
        and limited to''; and
            (B) by striking ``employment, to a governmental agency'' 
        and inserting ``employment, in the case of any other 
        governmental agency)''.
    (2) Reimbursement for Reports by State Agencies and Credit 
Bureaus.--Section 453 (42 U.S.C. 653) is amended by adding at the end 
the following new subsection:
    ``(g) The Secretary is authorized to reimburse costs to State 
agencies and consumer credit reporting agencies the costs incurred by 
such entities in furnishing information requested by the Secretary 
pursuant to this section in an amount which the Secretary determines to 
be reasonable payment for the data exchange (which amount shall not 
include payment for the costs of obtaining, compiling, or maintaining 
the data).''.
    (d) Disclosure of Tax Return Information.--(1) Section 
6103(1)(6)(A)(ii) of the Internal Revenue Code of 1986 is amended by 
striking ``, but only if'' and all that follows and inserting a period.
    (2) Section 6103(1)(8)(A) of the Internal Revenue Code of 1986 is 
amended by inserting ``Federal,'' before ``State or local''.
    (e) Technical Amendments.--
            (1) Sections 452(a)(9), 453(a), 453(b), 463(a), and 463(e) 
        (42 U.S.C. 652(a)(9), 653(a), 653(b), 663(a), and 663(e)) are 
        each amended by inserting ``Federal'' before ``Parent'' each 
        place it appears.
            (2) Section 453 (42 U.S.C. 653) is amended in the heading 
        by adding ``federal'' before ``parent''.
    (f) New Components.--Section 453 (42 U.S.C. 653), as amended by 
subsection (c)(2) of this section, is amended by adding at the end the 
following:
    ``(h) Data Bank of Child Support Orders.--
            ``(1) In general.--Not later than October 1, 1998, in order 
        to assist States in administering their State plans under this 
        part and parts A, F, and G, and for the other purposes 
        specified in this section, the Secretary shall establish and 
        maintain in the Federal Parent Locator Service an automated 
        registry to be known as the Data Bank of Child Support Orders, 
        which shall contain abstracts of child support orders and other 
        information described in paragraph (2) on each case in each 
        State central case registry maintained pursuant to section 
        454A(e), as furnished (and regularly updated), pursuant to 
        section 454A(f), by State agencies administering programs under 
        this part.
            ``(2) Case information.--The information referred to in 
        paragraph (1), as specified by the Secretary, shall include 
        sufficient information (including names, social security 
        numbers or other uniform identification numbers, and State case 
        identification numbers) to identify the individuals who owe or 
        are owed support (or with respect to or on behalf of whom 
        support obligations are sought to be established), and the 
        State or States which have established or modified, or are 
        enforcing or seeking to establish, such an order.
    ``(i) Directory of New Hires.--
            ``(1) In general.--Not later than October 1, 1998, in order 
        to assist States in administering their State plans under this 
        part and parts A, F, and G, and for the other purposes 
        specified in this section, the Secretary shall establish and 
        maintain in the Federal Parent Locator Service an automated 
        directory to be known as the directory of New Hires, 
        containing--
                    ``(A) information supplied by employers on each 
                newly hired individual, in accordance with paragraph 
                (2); and
                    ``(B) information supplied by State agencies 
                administering State unemployment compensation laws, in 
                accordance with paragraph (3).
            ``(2) Employer information.--
                    ``(A) Information required.--Subject to 
                subparagraph (D), each employer shall furnish to the 
                Secretary, for inclusion in the directory established 
                under this subsection, not later than 10 days after the 
                date (on or after October 1, 1998) on which the 
                employer hires a new employee (as defined in 
                subparagraph (C)), a report containing the name, date 
                of birth, and social security number of such employee, 
                and the employer identification number of the employer.
                    ``(B) Reporting method and format.--The Secretary 
                shall provide for transmission of the reports required 
                under subparagraph (A) using formats and methods which 
                minimize the burden on employers, which shall include--
                            ``(i) automated or electronic transmission 
                        of such reports;
                            ``(ii) transmission by regular mail; and
                            ``(iii) transmission of a copy of the form 
                        required for purposes of compliance with 
                        section 3402 of the Internal Revenue Code of 
                        1986.
                    ``(C) Employee defined.--For purposes of this 
                paragraph, the term `employee' means any individual 
                subject to the requirement of section 3402(f)(2) of the 
                Internal Revenue Code of 1986.
                    ``(D) Paperwork reduction requirement.--As required 
                by the information resources management policies 
                published by the Director of the Office of Management 
                and Budget pursuant to section 3504(b)(1) of title 44, 
                United States Code, the Secretary, in order to minimize 
                the cost and reporting burden on employers, shall not 
                require reporting pursuant to this paragraph if an 
                alternative reporting mechanism can be developed that 
                either relies on existing Federal or State reporting or 
                enables the Secretary to collect the needed information 
                in a more cost-effective and equally expeditious 
                manner, taking into account the reporting costs on 
                employers.
                    ``(E) Civil money penalty on noncomplying 
                employers.--(i) Any employer that fails to make a 
                timely report in accordance with this paragraph with 
                respect to an individual shall be subject to a civil 
                money penalty, for each calendar year in which the 
                failure occurs, of the lesser of $500 or 1 percent of 
                the wages or other compensation paid by such employer 
                to such individual during such calendar year.
                    ``(ii) Subject to clause (iii), the provisions of 
                section 1128A (other than subsections (a) and (b) 
                thereof) shall apply to a civil money penalty under 
                clause (i) in the same manner as they apply to a civil 
                money penalty or proceeding under section 1128A(a).
                    ``(iii) Any employer with respect to whom a penalty 
                under this subparagraph is upheld after an 
                administrative hearing shall be liable to pay all costs 
                of the Secretary with respect to such hearing.
            ``(3) Employment security information.--
                    ``(A) Reporting requirement.--Each State agency 
                administering a State unemployment compensation law 
                approved by the Secretary of Labor under the Federal 
                Unemployment Tax Act shall furnish to the Secretary of 
                Health and Human Services extracts of the reports to 
                the Secretary of Labor concerning the wages and 
                unemployment compensation paid to individuals required 
                under section 303(a)(6), in accordance with 
                subparagraph (B).
                    ``(B) Manner of compliance.--The extracts required 
                under subparagraph (A) shall be furnished to the 
                Secretary of Health and Human Services on a quarterly 
                basis, with respect to calendar quarters beginning on 
                and after October 1, 1996, by such dates, in such 
                format, and containing such information as required by 
                that Secretary in regulations.
    ``(j) Data Matches and Other Disclosures.--
            ``(1) Verification by social security administration.--(A) 
        The Secretary shall transmit data on individuals and employers 
        maintained under this section to the Social Security 
        Administration to the extent necessary for verification in 
        accordance with subparagraph (B).
            ``(B) The Social Security Administration shall verify the 
        accuracy of, correct or supply to the extent necessary and 
        feasible, and report to the Secretary, the following 
        information in data supplied by the Secretary pursuant to 
        subparagraph (A):
                    ``(i) the name, social security number, and birth 
                date of each individual; and
                    ``(ii) the employer identification number of each 
                employer.
            ``(2) Child support locator matches.--For the purpose of 
        locating individuals for purposes of paternity establishment 
        and establishment and enforcement of child support, the 
        Secretary shall--
                    ``(A) match data in the directory of New Hires 
                against the child support order abstracts in the Data 
                Bank of Child Support Orders not less often than every 
                2 working days; and
                    ``(B) report information obtained from such a match 
                to concerned State agencies operating programs under 
                this part not later than 2 working days after such 
                match.
            ``(3) Data matches and disclosures of data in all 
        registries for title iv program purposes.--The Secretary 
        shall--
                    ``(A) perform matches of data in each component of 
                the Federal Parent Locator Service maintained under 
                this section against data in each other such component 
                (other than the matches required pursuant to paragraph 
                (1)), and report information resulting from such 
                matches to State agencies operating programs under this 
                part and parts A, F, and G; and
                    ``(B) disclose data in such registries to such 
                State agencies,
        to the extent, and with the frequency, that the Secretary 
        determines to be effective in assisting such States to carry 
        out their responsibilities under such programs.
    ``(k) Fees.--
            ``(1) For ssa verification.--The Secretary shall reimburse 
        the Commissioner of Social Security, at a rate negotiated 
        between the Secretary and the Commissioner, the costs incurred 
        by the Commissioner in performing the verification services 
        specified in subsection (j).
            ``(2) For information from sesas.--The Secretary shall 
        reimburse costs incurred by State employment security agencies 
        in furnishing data as required by subsection (j)(3), at rates 
        which the Secretary determines to be reasonable (which rates 
        shall not include payment for the costs of obtaining, 
        compiling, or maintaining such data).
            ``(3) For information furnished to state and federal 
        agencies.--State and Federal agencies receiving data or 
        information from the Secretary pursuant to this section shall 
        reimburse the costs incurred by the Secretary in furnishing 
        such data or information, at rates which the Secretary 
        determines to be reasonable (which rates shall include payment 
        for the costs of obtaining, verifying, maintaining, and 
        matching such data or information).
    ``(l) Restriction on Disclosure and Use.--Data in the Federal 
Parent Locator Service, and information resulting from matches using 
such data, shall not be used or disclosed except as specifically 
provided in this section.
    ``(m) Retention of Data.--Data in the Federal Parent Locator 
Service, and data resulting from matches performed pursuant to this 
section, shall be retained for such period (determined by the 
Secretary) as appropriate for the data uses specified in this section.
    ``(n) Information Integrity and Security.--The Secretary shall 
establish and implement safeguards with respect to the entities 
established under this section designed to--
            ``(1) ensure the accuracy and completeness of information 
        in the Federal Parent Locator Service; and
            ``(2) restrict access to confidential information in the 
        Federal Parent Locator Service to authorized persons, and 
        restrict use of such information to authorized purposes.
    ``(o) Limit on Liability.--The Secretary shall not be liable to 
either a State or an individual for inaccurate information provided to 
a component of the Federal Parent Locator Service section and disclosed 
by the Secretary in accordance with this section.''.
    (g) Conforming Amendments.--
            (1) To part d of title iv of the social security act.--
        Section 454(8)(B) (42 U.S.C. 654(8)(B)) is amended to read as 
        follows:
                    ``(B) the Federal Parent Locator Service 
                established under section 453;''.
            (2) To federal unemployment tax act.--Section 3304(16) of 
        the Internal Revenue Code of 1986 is amended--
                    (A) by striking ``Secretary of Health, Education, 
                and Welfare'' each place such term appears and 
                inserting ``Secretary of Health and Human Services'';
                    (B) in subparagraph (B), by striking ``such 
                information'' and all that follows and inserting 
                ``information furnished under subparagraph (A) or (B) 
                is used only for the purposes authorized under such 
                subparagraph;'';
                    (C) by striking ``and'' at the end of subparagraph 
                (A);
                    (D) by redesignating subparagraph (B) as 
                subparagraph (C); and
                    (E) by inserting after subparagraph (A) the 
                following new subparagraph:
                    ``(B) wage and unemployment compensation 
                information contained in the records of such agency 
                shall be furnished to the Secretary of Health and Human 
                Services (in accordance with regulations promulgated by 
                such Secretary) as necessary for the purposes of the 
                directory of New Hires established under section 453(i) 
                of the Social Security Act, and''.
            (3) To state grant program under title iii of the social 
        security act.--Section 303(a) (42 U.S.C. 503(a)) is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (8);
                    (B) by striking the period at the end of paragraph 
                (9) and inserting ``; and''; and
                    (C) by adding after paragraph (9) the following new 
                paragraph:
            ``(10) The making of quarterly electronic reports, at such 
        dates, in such format, and containing such information, as 
        required by the Secretary of Health and Human Services under 
        section 453(i)(3), and compliance with such provisions as such 
        Secretary may find necessary to ensure the correctness and 
        verification of such reports.''.

SEC. 41306. USE OF SOCIAL SECURITY NUMBERS.

    (a) State Law Requirement.--Section 466(a) (42 U.S.C. 666(a)), as 
amended by section 41101(a) of this subtitle, is amended by adding at 
the end the following new paragraph:
            ``(13) Social security numbers required.--Procedures 
        requiring the recording of social security numbers--
                    ``(A) of both parties on marriage licenses and 
                divorce decrees; and
                    ``(B) of both parents, on birth records and child 
                support and paternity orders.''.
    (b) Clarification of Federal Policy.--Section 205(c)(2)(C)(ii) (42 
U.S.C. 405(c)(2)(C)(ii)) is amended by striking the third sentence and 
inserting ``This clause shall not be considered to authorize disclosure 
of such numbers except as provided in the preceding sentence.''.

          CHAPTER 4--STREAMLINING AND UNIFORMITY OF PROCEDURES

SEC. 41401. ADOPTION OF UNIFORM STATE LAWS.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 41101(a) 
and 41306(a) of this subtitle, is amended by adding at the end the 
following new paragraph:
            ``(14) Interstate enforcement.--(A) Adoption of uifsa.--
        Procedures under which the State adopts in its entirety (with 
        the modifications and additions specified in this paragraph) 
        not later than January 1, 1997, and uses on and after such 
        date, the Uniform Interstate Family Support Act, as approved by 
        the National Conference of Commissioners on Uniform State Laws 
        in August, 1992.
            ``(B) Expanded application of uifsa.--The State law adopted 
        pursuant to subparagraph (A) shall be applied to any case--
                    ``(i) involving an order established or modified in 
                one State and for which a subsequent modification is 
                sought in another State; or
                    ``(ii) in which interstate activity is required to 
                enforce an order.
            ``(C) Jurisdiction to modify orders.--The State law adopted 
        pursuant to subparagraph (A) of this paragraph shall contain 
        the following provision in lieu of section 611(a)(1) of the 
        Uniform Interstate Family Support Act described in such 
        subparagraph (A):
            ```(1) the following requirements are met:
                    ```(i) the child, the individual obligee, and the 
                obligor--
                            ```(I) do not reside in the issuing State; 
                        and
                            ```(II) either reside in this State or are 
                        subject to the jurisdiction of this State 
                        pursuant to section 201; and
                    ```(ii) (in any case where another State is 
                exercising or seeks to exercise jurisdiction to modify 
                the order) the conditions of section 204 are met to the 
                same extent as required for proceedings to establish 
                orders; or'.
            ``(D) Service of process.--The State law adopted pursuant 
        to subparagraph (A) shall recognize as valid, for purposes of 
        any proceeding subject to such State law, service of process 
        upon persons in the State (and proof of such service) by any 
        means acceptable in another State which is the initiating or 
        responding State in such proceeding.
            ``(E) Cooperation by employers.--The State law adopted 
        pursuant to subparagraph (A) shall provide for the use of 
procedures (including sanctions for noncompliance) under which all 
entities in the State (including for-profit, nonprofit, and 
governmental employers) are required to provide promptly, in response 
to a request by the State agency of that or any other State 
administering a program under this part, information on the employment, 
compensation, and benefits of any individual employed by such entity as 
an employee or contractor.''.

SEC. 41402. IMPROVEMENTS TO FULL FAITH AND CREDIT FOR CHILD SUPPORT 
              ORDERS.

    Section 1738B of title 28, United States Code, is amended--
            (1) in subsection (a)(2), by striking ``subsection (e)'' 
        and inserting ``subsections (e), (f), and (i)'';
            (2) in subsection (b), by inserting after the 2nd 
        undesignated paragraph the following:
            ```child's home State' means the State in which a child 
        lived with a parent or a person acting as parent for at least 
        six consecutive months immediately preceding the time of filing 
        of a petition or comparable pleading for support and, if a 
        child is less than six months old, the State in which the child 
        lived from birth with any of them. A period of temporary 
        absence of any of them is counted as part of the six-month 
        period.'';
            (3) in subsection (c), by inserting ``by a court of a 
        State'' before ``is made'';
            (4) in subsection (c)(1), by inserting ``and subsections 
        (e), (f), and (g)'' after ``located'';
            (5) in subsection (d)--
                    (A) by inserting ``individual'' before 
                ``contestant''; and
                    (B) by striking ``subsection (e)'' and inserting 
                ``subsections (e) and (f)'';
            (6) in subsection (e), by striking ``make a modification of 
        a child support order with respect to a child that is made'' 
        and inserting ``modify a child support order issued'';
            (7) in subsection (e)(1), by inserting ``pursuant to 
        subsection (i)'' before the semicolon;
            (8) in subsection (e)(2)--
                    (A) by inserting ``individual'' before 
                ``contestant'' each place such term appears; and
                    (B) by striking ``to that court's making the 
                modification and assuming'' and inserting ``with the 
                State of continuing, exclusive jurisdiction for a court 
                of another State to modify the order and assume'';
            (9) by redesignating subsections (f) and (g) as subsections 
        (g) and (h), respectively;
            (10) by inserting after subsection (e) the following:
    ``(f) Recognition of Child Support Orders.--If one or more child 
support orders have been issued in this or another State with regard to 
an obligor and a child, a court shall apply the following rules in 
determining which order to recognize for purposes of continuing, 
exclusive jurisdiction and enforcement:
            ``(1) If only one court has issued a child support order, 
        the order of that court must be recognized.
            ``(2) If two or more courts have issued child support 
        orders for the same obligor and child, and only one of the 
        courts would have continuing, exclusive jurisdiction under this 
        section, the order of that court must be recognized.
            ``(3) If two or more courts have issued child support 
        orders for the same obligor and child, and only one of the 
        courts would have continuing, exclusive jurisdiction under this 
        section, an order issued by a court in the current home State 
        of the child must be recognized, but if an order has not been 
        issued in the current home State of the child, the order most 
        recently issued must be recognized.
            ``(4) If two or more courts have issued child support 
        orders for the same obligor and child, and none of the courts 
        would have continuing, exclusive jurisdiction under this 
        section, a court may issue a child support order, which must be 
        recognized.
            ``(5) The court that has issued an order recognized under 
        this subsection is the court having continuing, exclusive 
        jurisdiction.'';
            (11) in subsection (g) (as so redesignated)--
                    (A) by striking ``Prior'' and inserting 
                ``Modified''; and
                    (B) by striking ``subsection (e)'' and inserting 
                ``subsections (e) and (f)'';
            (12) in subsection (h) (as so redesignated)--
                    (A) in paragraph (2), by inserting ``including the 
                duration of current payments and other obligations of 
                support'' before the comma; and
                    (B) in paragraph (3), by inserting ``arrears 
                under'' after ``enforce''; and
            (13) by adding at the end the following:
    ``(i) Registration for Modification.--If there is no individual 
contestant or child residing in the issuing State, the party or support 
enforcement agency seeking to modify, or to modify and enforce, a child 
support order issued in another State shall register that order in a 
State with jurisdiction over the nonmovant for the purpose of 
modification.''.

SEC. 41403. STATE LAWS PROVIDING EXPEDITED PROCEDURES.

    (a) State Law Requirements.--Section 466 (42 U.S.C. 666) is 
amended--
            (1) in subsection (a)(2), in the first sentence, to read as 
        follows: ``Expedited administrative and judicial procedures 
        (including the procedures specified in subsection (c)) for 
        establishing paternity and for establishing, modifying, and 
        enforcing support obligations.''; and
            (2) by adding after subsection (b) the following new 
        subsection:
    ``(c) Expedited Procedures.--The procedures specified in this 
subsection are the following:
            ``(1) Administrative action by state agency.--Procedures 
        which give the State agency the authority (and recognize and 
        enforce the authority of State agencies of other States), 
        without the necessity of obtaining an order from any other 
        judicial or administrative tribunal (but subject to due process 
        safeguards, including (as appropriate) requirements for notice, 
        opportunity to contest the action, and opportunity for an 
        appeal on the record to an independent administrative or 
        judicial tribunal), to take the following actions relating to 
        establishment or enforcement of orders:
                    ``(A) Genetic testing.--To order genetic testing 
                for the purpose of paternity establishment as provided 
                in section 466(a)(5).
                    ``(B) Default orders.--To enter a default order, 
                upon a showing of service of process and any additional 
                showing required by State law--
                            ``(i) establishing paternity, in the case 
                        of any putative father who refuses to submit to 
                        genetic testing; and
                            ``(ii) establishing or modifying a support 
                        obligation, in the case of a parent (or other 
                        obligor or obligee) who fails to respond to 
                        notice to appear at a proceeding for such 
                        purpose.
                    ``(C) Subpoenas.--To subpoena any financial or 
                other information needed to establish, modify, or 
                enforce an order, and to sanction failure to respond to 
                any such subpoena.
                    ``(D) Access to personal and financial 
                information.--To obtain access, subject to safeguards 
                on privacy and information security, to the following 
                records (including automated access, in the case of 
                records maintained in automated data bases):
                            ``(i) records of other State and local 
                        government agencies, including--
                                    ``(I) vital statistics (including 
                                records of marriage, birth, and 
                                divorce);
                                    ``(II) State and local tax and 
                                revenue records (including information 
                                on residence address, employer, income 
                                and assets);
                                    ``(III) records concerning real and 
                                titled personal property;
                                    ``(IV) records of occupational and 
                                professional licenses, and records 
                                concerning the ownership and control of 
                                corporations, partnerships, and other 
                                business entities;
                                    ``(V) employment security records;
                                    ``(VI) records of agencies 
                                administering public assistance 
                                programs;
                                    ``(VII) records of the motor 
                                vehicle department; and
                                    ``(VIII) corrections records; and
                            ``(ii) certain records held by private 
                        entities, including--
                                    ``(I) customer records of public 
                                utilities and cable television 
                                companies; and
                                    ``(II) information (including 
                                information on assets and liabilities) 
                                on individuals who owe or are owed 
                                support (or against or with respect to 
                                whom a support obligation is sought) 
                                held by financial institutions (subject 
                                to limitations on liability of such 
                                entities arising from affording such 
                                access).
                    ``(E) Income withholding.--To order income 
                withholding in accordance with subsection (a)(1) and 
                (b) of section 466.
                    ``(F) Change in payee.--(In cases where support is 
                subject to an assignment under section 402(a)(26), 
                471(a)(17), or 1912, or to a requirement to pay through 
                the centralized collections unit under section 454B) 
                upon providing notice to obligor and obligee, to direct 
                the obligor or other payor to change the payee to the 
                appropriate government entity.
                    ``(G) Secure assets to satisfy arrearages.--For the 
                purpose of securing overdue support--
                            ``(i) to intercept and seize any periodic 
                        or lump-sum payment to the obligor by or 
                        through a State or local government agency, 
                        including--
                                    ``(I) unemployment compensation, 
                                workers' compensation, and other 
                                benefits;
                                    ``(II) judgments and settlements in 
                                cases under the jurisdiction of the 
                                State or local government; and
                                    ``(III) lottery winnings;
                            ``(ii) to attach and seize assets of the 
                        obligor held by financial institutions;
                            ``(iii) to attach public and private 
                        retirement funds in appropriate cases, as 
                        determined by the Secretary; and
                            ``(iv) to impose liens in accordance with 
                        paragraph (a)(4) and, in appropriate cases, to 
                        force sale of property and distribution of 
                        proceeds.
                    ``(H) Increase monthly payments.--For the purpose 
                of securing overdue support, to increase the amount of 
                monthly support payments to include amounts for 
                arrearages (subject to such conditions or restrictions 
                as the State may provide).
                    ``(I) Suspension of drivers' licenses.--To suspend 
                drivers' licenses of individuals owing past-due 
                support, in accordance with subsection (a)(16).
            ``(2) Substantive and procedural rules.--The expedited 
        procedures required under subsection (a)(2) shall include the 
        following rules and authority, applicable with respect to all 
        proceedings to establish paternity or to establish, modify, or 
        enforce support orders:
                    ``(A) Locator information; presumptions concerning 
                notice.--Procedures under which--
                            ``(i) the parties to any paternity or child 
                        support proceedings are required (subject to 
privacy safeguards) to file with the tribunal before entry of an order, 
and to update as appropriate, information on location and identity 
(including Social Security number, residential and mailing addresses, 
telephone number, driver's license number, and name, address, and 
telephone number of employer); and
                            ``(ii) in any subsequent child support 
                        enforcement action between the same parties, 
                        the tribunal shall be authorized, upon 
                        sufficient showing that diligent effort has 
                        been made to ascertain such party's current 
                        location, to deem due process requirements for 
                        notice and service of process to be met, with 
                        respect to such party, by delivery to the most 
                        recent residential or employer address so filed 
                        pursuant to clause (i).
                    ``(B) Statewide jurisdiction.--Procedures under 
                which--
                            ``(i) the State agency and any 
                        administrative or judicial tribunal with 
                        authority to hear child support and paternity 
                        cases exerts statewide jurisdiction over the 
                        parties, and orders issued in such cases have 
                        statewide effect; and
                            ``(ii) (in the case of a State in which 
                        orders in such cases are issued by local 
                        jurisdictions) a case may be transferred 
                        between jurisdictions in the State without need 
                        for any additional filing by the petitioner, or 
                        service of process upon the respondent, to 
                        retain jurisdiction over the parties.''.
    (c) Exceptions from State Law Requirements.--Section 466(d) (42 
U.S.C. 666(d)) is amended--
            (1) by striking ``(d) If'' and inserting the following:
    ``(d) Exemptions From Requirements.--
            ``(1) In general.--Subject to paragraph (2), if''; and
            (2) by adding at the end the following new paragraph:
            ``(2) Nonexempt requirements.--The Secretary shall not 
        grant an exemption from the requirements of--
                    ``(A) subsection (a)(5) (concerning procedures for 
                paternity establishment);
                    ``(B) subsection (a)(10) (concerning modification 
                of orders);
                    ``(C) subsection (a)(12) (concerning recording of 
                orders in the central State case registry);
                    ``(D) subsection (a)(13) (concerning recording of 
                Social Security numbers);
                    ``(E) subsection (a)(14) (concerning interstate 
                enforcement); or
                    ``(F) subsection (c) (concerning expedited 
                procedures), other than paragraph (1)(A) thereof 
                (concerning establishment or modification of support 
                amount).''.
    (d) Automation of State Agency Functions.--Section 454A, as added 
by section 41205(a)(2) of this subtitle and as amended by sections 
41301 and 41302(c) of this subtitle, is amended by adding at the end 
the following new subsection:
    ``(h) Expedited Administrative Procedures.--The automated system 
required under this section shall be used, to the maximum extent 
feasible, to implement any expedited administrative procedures required 
under section 466(c).''.

                   CHAPTER 5--PATERNITY ESTABLISHMENT

SEC. 41501. STATE LAWS CONCERNING PATERNITY ESTABLISHMENT.

    (a) State Laws Required.--Section 466(a)(5) (42 U.S.C. 666(a)(5)) 
is amended--
            (1) by striking ``(5)'' and inserting the following:
            ``(5) Procedures concerning paternity establishment.--'';
            (2) in subparagraph (A)--
                    (A) by striking ``(A)(i)'' and inserting the 
                following:
                    ``(A) Establishment process available from birth 
                until age eighteen.--(i)''; and
                    (B) by indenting clauses (i) and (ii) so that the 
                left margin of such clauses is 2 ems to the right of 
                the left margin of paragraph (4);
            (3) in subparagraph (B)--
                    (A) by striking ``(B)'' and inserting the 
                following:
                    ``(B) Procedures concerning genetic testing.--
                (i)'';
                    (B) in clause (i), as redesignated, by inserting 
                before the period ``, where such request is supported 
                by a sworn statement (I) by such party alleging 
                paternity setting forth facts establishing a reasonable 
                possibility of the requisite sexual contact of the 
                parties, or (II) by such party denying paternity 
                setting forth facts establishing a reasonable 
                possibility of the nonexistence of sexual contact of 
                the parties;'';
                    (C) by inserting after and below clause (i) (as 
                redesignated) the following new clause:
                    ``(ii) Procedures which require the State agency, 
                in any case in which such agency orders genetic 
                testing--
                            ``(I) to pay costs of such tests, subject 
                        to recoupment (where the State so elects) from 
                        the putative father if paternity is 
                        established; and
                            ``(II) to obtain additional testing in any 
                        case where an original test result is disputed, 
                        upon request and advance payment by the 
                        disputing party.'';
            (4) by striking subparagraphs (C) and (D) and inserting the 
        following:
                    ``(C) Paternity acknowledgment.--(i) Procedures for 
                a simple civil process for voluntarily acknowledging 
                paternity under which the State must provide that, 
                before a mother and a putative father can sign an 
                acknowledgment of paternity, the putative father and 
                the mother must be given notice, orally, in writing, 
                and in a language that each can understand, of the 
                alternatives to, the legal consequences of, and the 
                rights (including, if 1 parent is a minor, any rights 
                afforded due to minority status) and responsibilities 
                that arise from, signing the acknowledgment.
                    ``(ii) Such procedures must include a hospital-
                based program for the voluntary acknowledgment of 
                paternity focusing on the period immediately before or 
                after the birth of a child.
                    ``(iii) Such procedures must require the State 
                agency responsible for maintaining birth records to 
                offer voluntary paternity establishment services.
                    ``(iv) The Secretary shall prescribe regulations 
                governing voluntary paternity establishment services 
                offered by hospitals and birth record agencies. The 
                Secretary shall prescribe regulations specifying the 
                types of other entities that may offer voluntary 
                paternity establishment services, and governing the 
                provision of such services, which shall include a 
requirement that such an entity must use the same notice provisions 
used by, the same materials used by, provide the personnel providing 
such services with the same training provided by, and evaluate the 
provision of such services in the same manner as, voluntary paternity 
establishment programs of hospitals and birth record agencies.
                    ``(v) Such procedures must require the State and 
                those required to establish paternity to use only the 
                affidavit developed under section 452(a)(7) for the 
                voluntary acknowledgment of paternity, and to give full 
                faith and credit to such an affidavit signed in any 
                other State.
                    ``(D) Status of signed paternity acknowledgment.--
                (i) Procedures under which a signed acknowledgment of 
                paternity is considered a legal finding of paternity, 
                subject to the right of any signatory to rescind the 
                acknowledgment within 60 days.
                    ``(ii)(I) Procedures under which, after the 60-day 
                period referred to in clause (i), a signed 
                acknowledgment of paternity may be challenged in court 
                only on the basis of fraud, duress, or material mistake 
                of fact, with the burden of proof upon the challenger, 
                and under which the legal responsibilities (including 
                child support obligations) of any signatory arising 
                from the acknowledgment may not be suspended during the 
                challenge, except for good cause shown.
                    ``(II) Procedures under which, after the 60-day 
                period referred to in clause (i), a minor who signs an 
                acknowledgment of paternity other than in the presence 
                of a parent or court-appointed guardian ad litem may 
                rescind the acknowledgment in a judicial or 
                administrative proceeding, until the earlier of--
                            ``(aa) attaining the age of majority; or
                            ``(bb) the date of the first judicial or 
                        administrative proceeding brought (after the 
                        signing) to establish a child support 
                        obligation, visitation rights, or custody 
                        rights with respect to the child whose 
                        paternity is the subject of the acknowledgment, 
                        and at which the minor is represented by a 
                        parent, guardian ad litem, or attorney.'';
            (5) by striking subparagraph (E) and inserting the 
        following:
                    ``(E) Bar on acknowledgment ratification 
                proceedings.--Procedures under which no judicial or 
                administrative proceedings are required or permitted to 
                ratify an unchallenged acknowledgment of paternity.'';
            (6) by striking subparagraph (F) and inserting the 
        following:
                    ``(F) Admissibility of genetic testing results.--
                Procedures--
                            ``(i) requiring that the State admit into 
                        evidence, for purposes of establishing 
                        paternity, results of any genetic test that 
                        is--
                                    ``(I) of a type generally 
                                acknowledged, by accreditation bodies 
                                designated by the Secretary, as 
                                reliable evidence of paternity; and
                                    ``(II) performed by a laboratory 
                                approved by such an accreditation body;
                            ``(ii) that any objection to genetic 
                        testing results must be made in writing not 
                        later than a specified number of days before 
                        any hearing at which such results may be 
                        introduced into evidence (or, at State option, 
not later than a specified number of days after receipt of such 
results); and
                            ``(iii) that, if no objection is made, the 
                        test results are admissible as evidence of 
                        paternity without the need for foundation 
                        testimony or other proof of authenticity or 
                        accuracy.''; and
            (7) by adding after subparagraph (H) the following new 
        subparagraphs:
                    ``(I) No right to jury trial.--Procedures providing 
                that the parties to an action to establish paternity 
                are not entitled to jury trial.
                    ``(J) Temporary support order based on probable 
                paternity in contested cases.--Procedures which require 
                that a temporary order be issued, upon motion by a 
                party, requiring the provision of child support pending 
                an administrative or judicial determination of 
                parentage, where there is clear and convincing evidence 
                of paternity (on the basis of genetic tests or other 
                evidence).
                    ``(K) Proof of certain support and paternity 
                establishment costs.--Procedures under which bills for 
                pregnancy, childbirth, and genetic testing are 
                admissible as evidence without requiring third-party 
                foundation testimony, and shall constitute prima facie 
                evidence of amounts incurred for such services and 
                testing on behalf of the child.
                    ``(L) Waiver of state debts for cooperation.--At 
                the option of the State, procedures under which the 
                tribunal establishing paternity and support has 
                discretion to waive rights to all or part of amounts 
                owed to the State (but not to the mother) for costs 
                related to pregnancy, childbirth, and genetic testing 
                and for public assistance paid to the family where the 
                father cooperates or acknowledges paternity before or 
                after genetic testing.
                    ``(M) Standing of putative fathers.--Procedures 
                ensuring that the putative father has a reasonable 
                opportunity to initiate a paternity action.''.
    (b) National Paternity Acknowledgment Affidavit.--Section 452(a)(7) 
(42 U.S.C. 652(a)(7)) is amended by inserting ``, and develop an 
affidavit to be used for the voluntary acknowledgment of paternity 
which shall include the social security account number of each parent'' 
before the semicolon.
    (c) Technical Amendment.--Section 468 (42 U.S.C. 668) is amended by 
striking ``a simple civil process for voluntarily acknowledging 
paternity and''.

SEC. 41502. OUTREACH FOR VOLUNTARY PATERNITY ESTABLISHMENT.

    (a) State Plan Requirement.--Section 454(23) (42 U.S.C. 654(23)) is 
amended by adding at the end the following new subparagraph:
                    ``(C) publicize the availability and encourage the 
                use of procedures for voluntary establishment of 
                paternity and child support through a variety of means, 
                which--
                            ``(i) include distribution of written 
                        materials at health care facilities (including 
                        hospitals and clinics), and other locations 
                        such as schools;
                            ``(ii) may include pre-natal programs to 
                        educate expectant couples on individual and 
                        joint rights and responsibilities with respect 
                        to paternity (and may require all expectant 
                        recipients of assistance under part A to 
                        participate in such pre-natal programs, as an 
                        element of cooperation with efforts to 
                        establish paternity and child support);
                            ``(iii) include, with respect to each child 
                        discharged from a hospital after birth for whom 
                        paternity or child support has not been 
                        established, reasonable follow-up efforts 
                        (including at least one contact of each parent 
                        whose whereabouts are known, except where there 
                        is reason to believe such follow-up efforts 
                        would put mother or child at risk), providing--
                                    ``(I) in the case of a child for 
                                whom paternity has not been 
                                established, information on the 
                                benefits of and procedures for 
                                establishing paternity; and
                                    ``(II) in the case of a child for 
                                whom paternity has been established but 
                                child support has not been established, 
                                information on the benefits of and 
                                procedures for establishing a child 
                                support order, and an application for 
                                child support services;''.
    (b) Enhanced Federal Matching.--Section 455(a)(1)(C) (42 U.S.C. 
655(a)(1)(C)) is amended--
            (1) by inserting ``(i)'' before ``laboratory costs'', and
            (2) by inserting before the semicolon ``, and (ii) costs of 
        outreach programs designed to encourage voluntary 
        acknowledgment of paternity''.
    (c) Effective Dates.--(1) The amendments made by subsection (a) 
shall become effective October 1, 1997.
    (2) The amendments made by subsection (b) shall be effective with 
respect to calendar quarters beginning on and after October 1, 1996.

      CHAPTER 6--ESTABLISHMENT AND MODIFICATION OF SUPPORT ORDERS

SEC. 41601. NATIONAL CHILD SUPPORT GUIDELINES COMMISSION.

    (a) Establishment.--There is hereby established a commission to be 
known as the ``National Child Support Guidelines Commission'' (in this 
section referred to as the ``Commission'').
    (b) General Duties.--The Commission shall develop a national child 
support guideline for consideration by the Congress that is based on a 
study of various guideline models, the benefits and deficiencies of 
such models, and any needed improvements.
    (c) Membership.--
            (1) Number; appointment.--
                    (A) In general.--The Commission shall be composed 
                of 12 individuals appointed jointly by the Secretary of 
                Health and Human Services and the Congress, not later 
                than January 15, 1997, of which--
                            (i) 2 shall be appointed by the Chairman of 
                        the Committee on Finance of the Senate, and 1 
                        shall be appointed by the ranking minority 
                        member of the Committee;
                            (ii) 2 shall be appointed by the Chairman 
                        of the Committee on Ways and Means of the House 
                        of Representatives, and 1 shall be appointed by 
                        the ranking minority member of the Committee; 
                        and
                            (iii) 6 shall be appointed by the Secretary 
                        of Health and Human Services.
                    (B) Qualifications of members.--Members of the 
                Commission shall have expertise and experience in the 
                evaluation and development of child support guidelines. 
                At least 1 member shall represent advocacy groups for 
                custodial parents, at least 1 member shall represent 
                advocacy groups for noncustodial parents, and at least 
                1 member shall be the director of a State program under 
                part D of title IV of the Social Security Act.
            (2) Terms of office.--Each member shall be appointed for a 
        term of 2 years. A vacancy in the Commission shall be filled in 
        the manner in which the original appointment was made.
    (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 2 years after the appointment of 
members, the Commission shall submit to the President, the Committee on 
Ways and Means of the House of Representatives, and the Committee on 
Finance of the Senate, a recommended national child support guideline 
and a final assessment of issues relating to such a proposed national 
child support guideline.
    (f) Termination.--The Commission shall terminate 6 months after the 
submission of the report described in subsection (e).

SEC. 41602. SIMPLIFIED PROCESS FOR REVIEW AND ADJUSTMENT OF CHILD 
              SUPPORT ORDERS.

    (a) In General.--Section 466(a)(10) (42 U.S.C. 666(a)(10)) is 
amended to read as follows:
            ``(10) Procedures for modification of support orders.--
                    ``(A)(i) Procedures under which--
                            ``(I) every 3 years, at the request of 
                        either parent subject to a child support order, 
                        the State shall review and, as appropriate, 
                        adjust the order in accordance with the 
                        guidelines established under section 467(a) if 
                        the amount of the child support award under the 
                        order differs from the amount that would be 
                        awarded in accordance with such guidelines, 
                        without a requirement for any other change in 
                        circumstances; and
                            ``(II) upon request at any time of either 
                        parent subject to a child support order, the 
                        State shall review and, as appropriate, adjust 
                        the order in accordance with the guidelines 
                        established under section 467(a) based on a 
                        substantial change in the circumstances of 
                        either such parent.
                    ``(ii) Such procedures shall require both parents 
                subject to a child support order to be notified of 
                their rights and responsibilities provided for under 
                clause (i) at the time the order is issued and in the 
                annual information exchange form provided under 
                subparagraph (B).
                    ``(B) Procedures under which each child support 
                order issued or modified in the State after the 
                effective date of this subparagraph shall require the 
                parents subject to the order to provide each other with 
                a complete statement of their respective financial 
                condition annually on a form which shall be established 
                by the Secretary and provided by the State. The 
                Secretary shall establish regulations for the 
                enforcement of such exchange of information.''.

                CHAPTER 7--ENFORCEMENT OF SUPPORT ORDERS

SEC. 41701. FEDERAL INCOME TAX REFUND OFFSET.

    (a) Changed Order of Refund Distribution Under Internal Revenue 
Code.--Section 6402(c) of the Internal Revenue Code of 1986 is 
amended--
            (1) by striking ``The amount'' and inserting ``(1) In 
        general.--The amount'';
            (2) by striking ``paid to the State. A reduction'' and 
        inserting ``paid to the State.
            ``(2) Priorities for offset.--A reduction'';
            (3) by striking ``has been assigned'' and inserting ``has 
        not been assigned''; and
            (4) by striking ``and shall be applied'' and all that 
        follows and inserting ``and shall thereafter be applied to 
        satisfy any past-due support that has been so assigned.''.
    (b) Elimination of Disparities in Treatment of Assigned and Non-
Assigned Arrearages.--(1) Section 464(a) (42 U.S.C. 664(a)) is 
amended--
            (A) by striking ``(a)'' and inserting ``(a) Offset 
        Authorized.--'';
            (B) in paragraph (1)--
                    (i) in the first sentence, by striking ``which has 
                been assigned to such State pursuant to section 
                402(a)(26) or section 471(a)(17)''; and
                    (ii) in the second sentence, by striking ``in 
                accordance with section 457 (b)(4) or (d)(3)'' and 
                inserting ``as provided in paragraph (2)'';
            (C) in paragraph (2), to read as follows:
            ``(2) The State agency shall distribute amounts paid by the 
        Secretary of the Treasury pursuant to paragraph (1)--
                    ``(A) in accordance with section 457 (a)(4) or 
                (d)(3), in the case of past-due support assigned to a 
                State pursuant to section 402(a)(26) or section 
                471(a)(17); and
                    ``(B) to or on behalf of the child to whom the 
                support was owed, in the case of past-due support not 
                so assigned.'';
            (D) in paragraph (3)--
                    (i) by striking ``or (2)'' each place it appears; 
                and
                    (ii) in subparagraph (B), by striking ``under 
                paragraph (2)'' and inserting ``on account of past-due 
                support described in paragraph (2)(B)''.
            (2) Section 464(b) (42 U.S.C. 664(b)) is amended--
                    (A) by striking ``(b)(1)'' and inserting ``(b) 
                Regulations.--''; and
                    (B) by striking paragraph (2).
            (3) Section 464(c) (42 U.S.C. 664(c)) is amended--
                    (A) by striking ``(c)(1) Except as provided in 
                paragraph (2), as'' and inserting ``(c) Definition.--
                As''; and
                    (B) by striking paragraphs (2) and (3).
    (c) Treatment of Lump-Sum Tax Refund Under AFDC.--
            (1) Exemption from lump-sum rule.--Section 402(a)(17) (42 
        U.S.C. 602(a)(17)) is amended by adding at the end the 
        following: ``but this paragraph shall not apply to income 
        received by a family that is attributable to a child support 
        obligation owed with respect to a member of the family and that 
        is paid to the family from amounts withheld from a Federal 
        income tax refund otherwise payable to the person owing such 
        obligation, to the extent that such income is placed in a 
        qualified asset account (as defined in section 406(j)) the 
        total amounts in which, after such placement, does not exceed 
        $10,000;''.
            (2) Qualified asset account defined.--Section 406 (42 
        U.S.C. 606), as amended by section 41102(g)(2) of this 
        subtitle, is amended by adding at the end the following:
    ``(j)(1) The term `qualified asset account' means a mechanism 
approved by the State (such as individual retirement accounts, escrow 
accounts, or savings bonds) that allows savings of a family receiving 
aid to families with dependent children to be used for qualified 
distributions.
    ``(2) The term `qualified distribution' means a distribution from a 
qualified asset account for expenses directly related to 1 or more of 
the following purposes:
            ``(A) The attendance of a member of the family at any 
        education or training program.
            ``(B) The improvement of the employability (including self-
        employment) of a member of the family (such as through the 
        purchase of an automobile).
            ``(C) The purchase of a home for the family.
            ``(D) A change of the family residence.''.
    (d) Effective Date.--The amendments made by this section shall 
become effective October 1, 1999.

SEC. 41702. INTERNAL REVENUE SERVICE COLLECTION OF ARREARS.

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

SEC. 41703. AUTHORITY TO COLLECT SUPPORT FROM FEDERAL EMPLOYEES.

    (a) Consolidation and Streamlining of Authorities.--
            (1) Section 459 (42 U.S.C. 659) is amended in the caption 
        by inserting ``income withholding,'' before ``garnishment''.
            (2) Section 459(a) (42 U.S.C. 659(a)) is amended--
                    (A) by striking ``(a)'' and inserting ``(a) Consent 
                To Support Enforcement.--
                    (B) by striking ``section 207'' and inserting 
                ``section 207 of this Act and 38 U.S.C. 5301''; and
                    (C) by striking all that follows ``a private 
                person,'' and inserting ``to withholding in accordance 
                with State law pursuant to subsections (a)(1) and (b) 
                of section 466 and regulations of the Secretary 
                thereunder, and to any other legal process brought, by 
                a State agency administering a program under this part 
                or by an individual obligee, to enforce the legal 
                obligation of such individual to provide child support 
                or alimony.''.
            (3) Section 459(b) (42 U.S.C. 659(b)) is amended to read as 
        follows:
    ``(b) Consent to Requirements Applicable to Private Person.-- 
Except as otherwise provided herein, each entity specified in 
subsection (a) shall be subject, with respect to notice to withhold 
income pursuant to subsection (a)(1) or (b) of section 466, or to any 
other order or process to enforce support obligations against an 
individual (if such order or process contains or is accompanied by 
sufficient data to permit prompt identification of the individual and 
the moneys involved), to the same requirements as would apply if such 
entity were a private person.''.
            (4) Section 459(c) (42 U.S.C. 659(c)) is redesignated and 
        relocated as paragraph (2) of subsection (f), and is amended--
                    (A) by striking ``responding to interrogatories 
                pursuant to requirements imposed by section 461(b)(3)'' 
                and inserting ``taking actions necessary to comply with 
                the requirements of subsection (A) with regard to any 
                individual''; and
                    (B) by striking ``any of his duties'' and all that 
                follows and inserting ``such duties.''.
            (5) Section 461 (42 U.S.C. 661) is amended by striking 
        subsection (b), and section 459 (42 U.S.C. 659) is amended by 
        inserting after subsection (b) (as added by paragraph (3) of 
        this subsection) the following:
    ``(c) Designation of Agent; Response to Notice or Process.--(1) The 
head of each agency subject to the requirements of this section shall--
            ``(A) designate an agent or agents to receive orders and 
        accept service of process; and
            ``(B) publish (i) in the appendix of such regulations, (ii) 
        in each subsequent republication of such regulations, and (iii) 
        annually in the Federal Register, the designation of such agent 
        or agents, identified by title of position, mailing address, 
        and telephone number.''.
            (6) Section 459 (42 U.S.C. 659) is amended by striking 
        subsection (d) and by inserting after subsection (c)(1) (as 
        added by paragraph (5) of this subsection) the following:
    ``(2) Whenever an agent designated pursuant to paragraph (1) 
receives notice pursuant to subsection (a)(1) or (b) of section 466, or 
is effectively served with any order, process, or interrogatories, with 
respect to an individual's child support or alimony payment 
obligations, such agent shall--
            ``(A) as soon as possible (but not later than fifteen days) 
        thereafter, send written notice of such notice or service 
        (together with a copy thereof) to such individual at his duty 
        station or last-known home address;
            ``(B) within 30 days (or such longer period as may be 
        prescribed by applicable State law) after receipt of a notice 
        pursuant to subsection (a)(1) or (b) of section 466, comply 
        with all applicable provisions of such section 466; and
            ``(C) within 30 days (or such longer period as may be 
        prescribed by applicable State law) after effective service of 
        any other such order, process, or interrogatories, respond 
        thereto.''.
            (7) Section 461 (42 U.S.C. 661) is amended by striking 
        subsection (c), and section 459 (42 U.S.C. 659) is amended by 
        inserting after subsection (c) (as added by paragraph (5) and 
        amended by paragraph (6) of this subsection) the following:
    ``(d) Priority of Claims.--In the event that a governmental entity 
receives notice or is served with process, as provided in this section, 
concerning amounts owed by an individual to more than one person--
            ``(1) support collection under section 466(b) must be given 
        priority over any other process, as provided in section 
        466(b)(7);
            ``(2) allocation of moneys due or payable to an individual 
        among claimants under section 466(b) shall be governed by the 
        provisions of such section 466(b) and regulations thereunder; 
        and
            ``(3) such moneys as remain after compliance with 
        subparagraphs (A) and (B) shall be available to satisfy any 
        other such processes on a first-come, first-served basis, with 
        any such process being satisfied out of such moneys as remain 
        after the satisfaction of all such processes which have been 
        previously served.''.
            (8) Section 459(e) (42 U.S.C. 659(e)) is amended by 
        striking ``(e)'' and inserting the following:
    ``(e) No Requirement To Vary Pay Cycles.--''.
            (9) Section 459(f) (42 U.S.C. 659(f)) is amended by 
        striking ``(f)'' and inserting the following:
    ``(f) Relief From Liability.--(1)''.
            (10) Section 461(a) (42 U.S.C. 661(a)) is redesignated and 
        relocated as section 459(g), and is amended--
                    (A) by striking ``(g)'' and inserting the 
                following:
    ``(g) Regulations.--''; and
                    (B) by striking ``section 459'' and inserting 
                ``this section''.
            (11) Section 462 (42 U.S.C. 662) is amended by striking 
        subsection (f), and section 459 (42 U.S.C. 659) is amended by 
        inserting the following after subsection (g) (as added by 
        paragraph (10) of this subsection):
    ``(h) Moneys Subject to Process.--(1) Subject to subsection (i), 
moneys paid or payable to an individual which are considered to be 
based upon remuneration for employment, for purposes of this section--
            ``(A) consist of--
                    ``(i) compensation paid or payable for personal 
                services of such individual, whether such compensation 
                is denominated as wages, salary, commission, bonus, 
                pay, allowances, or otherwise (including severance pay, 
                sick pay, and incentive pay);
                    ``(ii) periodic benefits (including a periodic 
                benefit as defined in section 228(h)(3)) or other 
                payments--
                            ``(I) under the insurance system 
                        established by title II;
                            ``(II) under any other system or fund 
                        established by the United States which provides 
                        for the payment of pensions, retirement or 
                        retired pay, annuities, dependents' or 
                        survivors' benefits, or similar amounts payable 
                        on account of personal services performed by 
                        the individual or any other individual;
                            ``(III) as compensation for death under any 
                        Federal program;
                            ``(IV) under any Federal program 
                        established to provide `black lung' benefits; 
                        or
                            ``(V) by the Secretary of Veterans Affairs 
                        as pension, or as compensation for a service-
                        connected disability or death (except any 
                        compensation paid by such Secretary to a former 
                        member of the Armed Forces who is in receipt of 
                        retired or retainer pay if such former member 
                        has waived a portion of his retired pay in 
                        order to receive such compensation); and
                    ``(iii) worker's compensation benefits paid under 
                Federal or State law; but
            ``(B) do not include any payment--
                    ``(i) by way of reimbursement or otherwise, to 
                defray expenses incurred by such individual in carrying 
                out duties associated with his employment; or
                    ``(ii) as allowances for members of the uniformed 
                services payable pursuant to chapter 7 of title 37, 
                United States Code, as prescribed by the Secretaries 
                concerned (defined by section 101(5) of such title) as 
                necessary for the efficient performance of duty.''.
            (12) Section 462(g) (42 U.S.C. 662(g)) is redesignated and 
        relocated as section 459(i) (42 U.S.C. 659(i)).
            (13)(A) Section 462 (42 U.S.C. 662) is amended--
                    (i) in subsection (e)(1), by redesignating 
                subparagraphs (A), (B), and (C) as clauses (i), (ii), 
                and (iii); and
                    (ii) in subsection (e), by redesignating paragraphs 
                (1) and (2) as subparagraphs (A) and (B).
            (B) Section 459 (42 U.S.C. 659) is amended by adding at the 
        end the following:
    ``(j) Definitions.--For purposes of this section--''.
            (C) Subsections (a) through (e) of section 462 (42 U.S.C. 
        662), as amended by subparagraph (A) of this paragraph, are 
        relocated and redesignated as paragraphs (1) through (4), 
        respectively of section 459(j) (as added by subparagraph (B) of 
        this paragraph, (42 U.S.C. 659(j)), and the left margin of each 
        of such paragraphs (1) through (4) is indented 2 ems to the 
        right of the left margin of subsection (i) (as added by 
        paragraph (12) of this subsection).
    (b) Conforming Amendments.--
            (1) To part d of title iv.--Sections 461 and 462 (42 U.S.C. 
        661), as amended by subsection (a) of this section, are 
        repealed.
            (2) To title 5, united states code.--Section 5520a of title 
        5, United States Code, is amended, in subsections (h)(2) and 
        (i), by striking ``sections 459, 461, and 462 of the Social 
        Security Act (42 U.S.C. 659, 661, and 662)'' and inserting 
        ``section 459 of the Social Security Act (42 U.S.C. 659)''.
    (c) Military Retired and Retainer Pay.--(1) Definition of Court.--
Section 1408(a)(1) of title 10, United States Code, is amended--
            (A) by striking ``and'' at the end of subparagraph (B);
            (B) by striking the period at the end of subparagraph (C) 
        and inserting ``; and''; and
            (C) by adding after subparagraph (C) the following new 
        paragraph:
                    ``(D) any administrative or judicial tribunal of a 
                State competent to enter orders for support or 
                maintenance (including a State agency administering a 
                State program under part D of title IV of the Social 
                Security Act).'';
    (2) Definition of Court Order.--Section 1408(a)(2) of such title is 
amended by inserting ``or a court order for the payment of child 
support not included in or accompanied by such a decree or 
settlement,'' before ``which--''.
    (3) Public Payee.--Section 1408(d) of such title is amended--
            (A) in the heading, by striking ``to spouse'' and inserting 
        ``to (or for benefit of)''; and
            (B) in paragraph (1), in the first sentence, by inserting 
        ``(or for the benefit of such spouse or former spouse to a 
        State central collections unit or other public payee designated 
        by a State, in accordance with part D of title IV of the Social 
        Security Act, as directed by court order, or as otherwise 
        directed in accordance with such part D)'' before ``in an 
        amount sufficient''.
    (4) Relationship to Part D of Title IV.--Section 1408 of such title 
is amended by adding at the end the following new subsection:
    ``(j) Relationship to Other Laws.--In any case involving a child 
support order against a member who has never been married to the other 
parent of the child, the provisions of this section shall not apply, 
and the case shall be subject to the provisions of section 459 of the 
Social Security Act.''.
    (d) Effective Date.--The amendments made by this section shall 
become effective 6 months after the date of the enactment of this 
subtitle.

SEC. 41704. ENFORCEMENT OF CHILD SUPPORT OBLIGATIONS OF MEMBERS OF THE 
              ARMED FORCES.

    (a) Availability of Locator Information.--
            (1) Maintenance of address information.--The Secretary of 
        Defense shall establish a centralized personnel locator service 
        that includes the address of each member of the Armed Forces 
        under the jurisdiction of the Secretary. Upon request of the 
        Secretary of Transportation, addresses for members of the Coast 
        Guard shall be included in the centralized personnel locator 
        service.
            (2) Type of address.--
                    (A) Residential address.--Except as provided in 
                subparagraph (B), the address for a member of the Armed 
                Forces shown in the locator service shall be the 
                residential address of that member.
                    (B) Duty address.--The address for a member of the 
                Armed Forces shown in the locator service shall be the 
                duty address of that member in the case of a member--
                            (i) who is permanently assigned overseas, 
                        to a vessel, or to a routinely deployable unit; 
                        or
                            (ii) with respect to whom the Secretary 
                        concerned makes a determination that the 
                        member's residential address should not be 
                        disclosed due to national security or safety 
                        concerns.
            (3) Updating of locator information.--Within 30 days after 
        a member listed in the locator service establishes a new 
        residential address (or a new duty address, in the case of a 
        member covered by paragraph (2)(B)), the Secretary concerned 
        shall update the locator service to indicate the new address of 
        the member.
            (4) Availability of information.--The Secretary of Defense 
        shall make information regarding the address of a member of the 
        Armed Forces listed in the locator service available, on 
        request, to the Federal Parent Locator Service.
    (b) Facilitating Granting of Leave for Attendance at Hearings.--
            (1) Regulations.--The Secretary of each military 
        department, and the Secretary of Transportation with respect to 
        the Coast Guard when it is not operating as a service in the 
        Navy, shall prescribe regulations to facilitate the granting of 
        leave to a member of the Armed Forces under the jurisdiction of 
        that Secretary in a case in which--
                    (A) the leave is needed for the member to attend a 
                hearing described in paragraph (2);
                    (B) the member is not serving in or with a unit 
                deployed in a contingency operation (as defined in 
                section 101 of title 10, United States Code); and
                    (C) the exigencies of military service (as 
                determined by the Secretary concerned) do not otherwise 
                require that such leave not be granted.
            (2) Covered hearings.--Paragraph (1) applies to a hearing 
        that is conducted by a court or pursuant to an administrative 
        process established under State law, in connection with a civil 
        action--
                    (A) to determine whether a member of the Armed 
                Forces is a natural parent of a child; or
                    (B) to determine an obligation of a member of the 
                Armed Forces to provide child support.
            (3) Definitions.--For purposes of this subsection:
                    (A) The term ``court'' has the meaning given that 
                term in section 1408(a) of title 10, United States 
                Code.
                    (B) The term ``child support'' has the meaning 
                given such term in section 462 of the Social Security 
                Act (42 U.S.C. 662).
    (c) Payment of Military Retired Pay in Compliance With Child 
Support Orders.--
            (1) Date of certification of court order.--Section 1408 of 
        title 10, United States Code, is amended--
                    (A) by redesignating subsection (i) as subsection 
                (j); and
                    (B) by inserting after subsection (h) the following 
                new subsection (i):
    ``(i) Certification Date.--It is not necessary that the date of a 
certification of the authenticity or completeness of a copy of a court 
order or an order of an administrative process established under State 
law for child support received by the Secretary concerned for the 
purposes of this section be recent in relation to the date of receipt 
by the Secretary.''.
            (2) Payments consistent with assignments of rights to 
        states.--Section 1408(d)(1) of such title is amended by 
        inserting after the 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 that assignment of rights.''.
            (3) Arrearages owed by members of the uniformed services.--
        Section 1408(d) of such title is amended by adding at the end 
        the following new paragraph:
    ``(6) In the case of a court order or an order of an administrative 
process established under State law for which effective service is made 
on the Secretary concerned on or after the date of the enactment of 
this paragraph and which provides for payments from the disposable 
retired pay of a member to satisy the amount of child support set forth 
in the order, the authority provided in paragraph (1) to make payments 
from the disposable retired pay of a member to satisy the amount of 
child support set forth in a court order or an order of an 
administrative process established under State law shall apply to 
payment of any amount of child support arrearages set forth in that 
order as well as to amounts of child support that currently become 
due.''.

SEC. 41705. MOTOR VEHICLE LIENS.

    Section 466(a)(4) (42 U.S.C. 666(a)(4)) is amended--
            (1) by striking ``(4) Procedures'' and inserting the 
        following:
            ``(4) Liens.--
                    ``(A) In general.--Procedures''; and
            (2) by adding at the end the following new subparagraph:
                    ``(B) Motor vehicle liens.--Procedures for placing 
                liens for arrears of child support on motor vehicle 
                titles of individuals owing such arrears equal to or 
                exceeding two months of support, under which--
                            ``(i) any person owed such arrears may 
                        place such a lien;
                            ``(ii) the State agency administering the 
                        program under this part shall systematically 
                        place such liens;
                            ``(iii) expedited methods are provided 
                        for--
                                    ``(I) ascertaining the amount of 
                                arrears;
                                    ``(II) affording the person owing 
                                the arrears or other titleholder to 
                                contest the amount of arrears or to 
                                obtain a release upon fulfilling the 
                                support obligation;
                            ``(iv) such a lien has precedence over all 
                        other encumbrances on a vehicle title other 
                        than a purchase money security interest; and
                            ``(v) the individual or State agency owed 
                        the arrears may execute on, seize, and sell the 
                        property in accordance with State law.''.

SEC. 41706. VOIDING OF FRAUDULENT TRANSFERS.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 41101(a), 
41306(a), and 41401 of this subtitle, is amended by adding at the end 
the following new paragraph:
            ``(15) Fraudulent transfers.--Procedures under which--
                    ``(A) the State has in effect--
                            ``(i) the Uniform Fraudulent Conveyance Act 
                        of 1981,
                            ``(ii) the Uniform Fraudulent Transfer Act 
                        of 1984, or
                            ``(iii) another law, specifying indicia of 
                        fraud which create a prima facie case that a 
                        debtor transferred income or property to avoid 
                        payment to a child support creditor, which the 
                        Secretary finds affords comparable rights to 
                        child support creditors; and
                    ``(B) in any case in which the State knows of a 
                transfer by a child support debtor with respect to 
                which such a prima facie case is established, the State 
                must--
                            ``(i) seek to void such transfer; or
                            ``(ii) obtain a settlement in the best 
                        interests of the child support creditor.''.

SEC. 41707. STATE LAW AUTHORIZING SUSPENSION OF LICENSES.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 41101(a), 
41306(a), 41401, and 41706 of this subtitle, is amended by adding at 
the end the following new paragraph:
            ``(16) Authority to withhold or suspend licenses.--
        Procedures under which the State has (and uses in appropriate 
        cases) authority (subject to appropriate due process 
        safeguards) to withhold or suspend, or to restrict the use of 
        driver's licenses, professional and occupational licenses, and 
        recreational licenses of individuals owing overdue child 
        support or failing, after receiving appropriate notice, to 
        comply with subpoenas or warrants relating to paternity or 
        child support proceedings.''.

SEC. 41708. REPORTING ARREARAGES TO CREDIT BUREAUS.

    Section 466(a)(7) (42 U.S.C. 666(a)(7)) is amended to read as 
follows:
            ``(7) Reporting arrearages to credit bureaus.--(A) 
        Procedures (subject to safeguards pursuant to subparagraph (B)) 
        requiring the State to report periodically to consumer 
        reporting agencies (as defined in section 603(f) of the Fair 
        Credit Reporting Act (15 U.S.C. 1681a(f)) the name of any 
        absent parent who is delinquent by 90 days or more in the 
        payment of support, and the amount of overdue support owed by 
        such parent.
            ``(B) Procedures ensuring that, in carrying out 
        subparagraph (A), information with respect to an absent parent 
        is reported--
                    ``(i) only after such parent has been afforded all 
                due process required under State law, including notice 
                and a reasonable opportunity to contest the accuracy of 
                such information; and
                    ``(ii) only to an entity that has furnished 
                evidence satisfactory to the State that the entity is a 
                consumer reporting agency.''.

SEC. 41709. EXTENDED STATUTE OF LIMITATION FOR COLLECTION OF 
              ARREARAGES.

    (a) Amendments.--Section 466(a)(9) (42 U.S.C. 666(a)(9)) is 
amended--
            (1) by striking ``(9) Procedures'' and inserting the 
        following:
            ``(9) Legal treatment of arrears.--
                    ``(A) Finality.--Procedures'';
            (2) by redesignating subparagraphs (A), (B), and (C) as 
        clauses (i), (ii), and (iii), respectively, and by indenting 
        each of such clauses 2 additional ems to the right; and
            (3) by adding after and below subparagraph (A), as 
        redesignated, the following new subparagraph:
                    ``(B) Statute of limitations.--Procedures under 
                which the statute of limitations on any arrearages of 
                child support extends at least until the child owed 
                such support is 30 years of age.''.
    (b) Application of Requirement.--The amendment made by this section 
shall not be read to require any State law to revive any payment 
obligation which had lapsed prior to the effective date of such State 
law.

SEC. 41710. CHARGES FOR ARREARAGES.

    (a) State Law Requirement.--Section 466(a) (42 U.S.C. 666(a)), as 
amended by sections 41101(a), 41306(a), 41401, 41706, and 41707 of this 
subtitle, is amended by adding at the end the following new paragraph:
            ``(17) Charges for arrearages.--Procedures providing for 
        the calculation and collection of interest or penalties for 
        arrearages of child support, and for distribution of such 
        interest or penalties collected for the benefit of the child 
        (except where the right to support has been assigned to the 
        State).''.
    (b) Regulations.--The Secretary of Health and Human Services shall 
establish by regulation a rule to resolve choice of law conflicts 
arising in the implementation of the amendment made by subsection (a).
    (c) Conforming Amendment.--Section 454(21) (42 U.S.C. 654(21)) is 
repealed.
    (d) Effective Date.--The amendments made by this section shall be 
effective with respect to arrearages accruing on or after October 1, 
1998.

SEC. 41711. DENIAL OF PASSPORTS FOR NONPAYMENT OF CHILD SUPPORT.

    (a) HHS Certification Procedure.--
            (1) Secretarial responsibility.--Section 452 (42 U.S.C. 
        652), as amended by sections 41205(a)(3) and 41207 of this 
        subtitle, is amended by adding at the end the following new 
        subsection:
    ``(l) Certifications for Purposes of Passport Restrictions.--
            ``(1) In general.--Where the Secretary receives a 
        certification by a State agency in accordance with the 
        requirements of section 454(28) that an individual owes 
        arrearages of child support in an amount exceeding $5,000 or in 
        an amount exceeding 24 months' worth of child support, the 
        Secretary shall transmit such certification to the Secretary of 
        State for action (with respect to denial, revocation, or 
        limitation of passports) pursuant to section 41711(b) of the 
        Economic Equity Act of 1996.
            ``(2) Limit on liability.--The Secretary shall not be 
        liable to an individual for any action with respect to a 
        certification by a State agency under this section.''.
            (2) State cse agency responsibility.--Section 454 (42 
        U.S.C. 654), as amended by sections 41104(a), 41204(b), and 
        41302(a) of this subtitle, is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (26);
                    (B) by striking the period at the end of paragraph 
                (27) and inserting ``; and''; and
                    (C) by adding after paragraph (27) the following 
                new paragraph:
            ``(28) provide that the State agency will have in effect a 
        procedure (which may be combined with the procedure for tax 
        refund offset under section 464) for certifying to the 
        Secretary, for purposes of the procedure under section 452(l) 
        (concerning denial of passports) determinations that 
        individuals owe arrearages of child support in an amount 
        exceeding $5,000 or in an amount exceeding 24 months' worth of 
        child support, under which procedure--
                    ``(A) each individual concerned is afforded notice 
                of such determination and the consequences thereof, and 
                an opportunity to contest the determination; and
                    ``(B) the certification by the State agency is 
                furnished to the Secretary in such format, and 
                accompanied by such supporting documentation, as the 
                Secretary may require.''.
    (b) State Department Procedure for Denial of Passports.--
            (1) In general.--The Secretary of State, upon certification 
        by the Secretary of Health and Human Services, in accordance 
        with section 452(l) of the Social Security Act, that an 
        individual owes arrearages of child support in excess of 
        $5,000, shall refuse to issue a passport to such individual, 
        and may revoke, restrict, or limit a passport issued previously 
        to such individual.
            (2) Limit on liability.--The Secretary of State shall not 
        be liable to an individual for any action with respect to a 
        certification by a State agency under this section.
    (c) Effective Date.--This section and the amendments made by this 
section shall become effective October 1, 1996.

SEC. 41712. INTERNATIONAL CHILD SUPPORT ENFORCEMENT.

    (a) Sense of the Congress That the United States Should Ratify the 
United Nations Convention of 1956.--It is the sense of the Congress 
that the United States should ratify the United Nations Convention of 
1956.
    (b) Treatment of International Child Support Cases as Interstate 
Cases.--Section 454 (42 U.S.C. 654), as amended by sections 41104(a), 
41204(b), 41302(a), and 41711(a)(2) of this subtitle, is amended--
            (1) by striking ``and'' at the end of paragraph (27);
            (2) by striking the period at the end of paragraph (28) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (28) the following:
            ``(29) provide that the State must treat international 
        child support cases in the same manner as the State treats 
        interstate child support cases.''.

                       CHAPTER 8--MEDICAL SUPPORT

SEC. 41801. TECHNICAL CORRECTION TO ERISA DEFINITION OF MEDICAL CHILD 
              SUPPORT ORDER.

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

                     CHAPTER 9--EFFECT OF ENACTMENT

SEC. 41901. EFFECTIVE DATES.

    (a) In General.--Except as otherwise specifically provided (but 
subject to subsections (b) and (c))--
            (1) provisions of this title requiring enactment or 
        amendment of State laws under section 466 of the Social 
        Security Act, or revision of State plans under section 454 of 
        such Act, shall be effective with respect to periods beginning 
        on and after October 1, 1996; and
            (2) all other provisions of this title shall become 
        effective upon enactment.
    (b) Grace Period for State Law Changes.--The provisions of this 
title shall become effective with respect to a State on the later of--
            (1) the date specified in this title, or
            (2) the effective date of laws enacted by the legislature 
        of such State implementing such provisions,
but in no event later than the first day of the first calendar quarter 
beginning after the close of the first regular session of the State 
legislature that begins after the date of enactment of this subtitle. 
For purposes of the previous sentence, in the case of a State that has 
a 2-year legislative session, each year of such session shall be deemed 
to be a separate regular session of the State legislature.
    (c) Grace Period for State Constitutional Amendment.--A State shall 
not be found out of compliance with any requirement enacted by this 
title if it is unable to comply without amending the State constitution 
until the earlier of--
            (1) the date one year after the effective date of the 
        necessary State constitutional amendment, or
            (2) the date five years after enactment of this title.

SEC. 41902. SEVERABILITY.

    If any provision of this title or the application thereof to any 
person or circumstance is held invalid, the invalidity shall not affect 
other provisions or applications of this title which can be given 
effect without regard to the invalid provision or application, and to 
this end the provisions of this title shall be severable.

                  Subtitle B--Interstate Child Support

SEC. 42001. REFERENCE.

    Except as otherwise specifically provided, wherever in this 
subtitle 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.

SEC. 42002. 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 determine 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) interjurisdiction 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 determine parentage and the 
effect to be given by each State to such determinations by the courts 
of other States.
    (c) Purposes.--The purposes of this subtitle are to--
            (1) expand the forums available to establish, enforce, or 
        modify a child support order, or to determine 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 
        determination 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) State.--For purposes of this section, the term ``State'' means 
the several States, the District of Columbia, the Commonwealth of 
Puerto Rico, the territories and possessions of the United States, and 
Indian country (as defined in section 1151 of title 18, United States 
Code).

                  CHAPTER 1--LOCATE AND CASE TRACKING

SEC. 42101. EXPANSION OF FUNCTIONS OF FEDERAL PARENT LOCATOR SERVICE.

    (a) In General.--Section 453 (42 U.S.C. 653) is amended--
            (1) in subsection (a), by striking ``enforcing support 
        obligations against such parent'' and inserting ``establishing 
        parentage, establishing, modifying, and enforcing child support 
        obligations, and enforcing child visitation rights and 
        responsibilities, and which shall use safeguards to prevent the 
        disclosure of information in cases that would jeopardize the 
        safety of the custodial parent or any child of the custodial 
        parent'';
            (2) in subsection (b), by inserting after the 2nd sentence 
        the following: ``Information with respect to an absent parent 
        shall not be disclosed to any person if the disclosure would 
        jeopardize the safety of the custodial parent or any child of 
        the custodial parent. Information with respect to an absent 
        parent shall not be disclosed to any person (other than the 
        custodial parent) unless the custodial parent has been notified 
        in advance of the disclosure.''; and
            (3) in subsection (d), by inserting ``and such reasonable 
        fees'' after ``such documents''.
    (b) Sense of the Congress.--It is the sense of the Congress that--
            (1) the denial of visitation rights under a child support 
        order should be treated as irrelevant in any action brought to 
        enforce the support provisions of the order; and
            (2) the failure to pay child support pursuant to a child 
        support order should be treated as irrelevant in any action 
        brought to enforce visitation rights under the order.

SEC. 42102. 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) in subsection (b), by striking ``the most recent 
        address and place of employment'' and inserting ``the most 
        recent residential address, employer name and address, and 
        amounts and nature of income and assets'';
            (2) in subsection (c)(3), by striking ``the resident 
        parent'' and inserting ``either parent''; and
            (3) in subsection (e), by adding at the end the following:
    ``(4) The Secretary of the Treasury shall enter into an agreement 
with the Secretary to provide prompt access by 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 (10) the following:
            ``(11) Procedures under which the State child support 
        enforcement 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 that is available through any 
        data base maintained by--
                    ``(A) any agency of the State or any political 
                subdivision thereof, that contains information on 
                residential addresses, or on employers and employer 
                addresses, as the State deems appropriate;
                    ``(B) any publicly regulated utility company 
                located in the State;
                    ``(C) any credit reporting agency located in the 
                State; and
                    ``(D) any trade or labor union located in the 
                State.
            ``(12) Procedures under which the State child support 
        enforcement agency shall--
                    ``(A) maintain a child support order registry which 
                shall include each child support order (or an abstract 
                thereof) issued or modified in the State on or after 
                the effective date of this paragraph; and
                    ``(B) transmit electronically to the Office of 
                Child Support Enforcement an abstract of each such 
                order, containing such information and in such form as 
                the Secretary may prescribe pursuant to section 
                452(a)(11).''.
    (c) Federal Registry of Abstracts of Child Support Orders.--Section 
452(a) (42 U.S.C 652(a)), as amended by section 42211(a) of this 
subtitle, is amended--
            (1) in paragraph (10), by striking ``and'' after the 
        semicolon;
            (2) in paragraph (11), by striking the period at the end of 
        the 2nd sentence and inserting ``; and''; and
            (3) by adding at the end the following:
            ``(12) maintain a registry of all child support order 
        abstracts received from States pursuant to section 
        466(a)(12)(B).''.
    (d) 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, accessing Federal data 
banks that are not linked to the Parent Locator Service which are more 
than marginally useful in locating absent parents.

SEC. 42103. 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:
    ``(g) The Secretary shall expand the Parent Locator Service to 
establish a national network based on the comprehensive statewide child 
support enforcement systems developed by the States, to--
            ``(1) allow each State to--
                    ``(A) locate any absent parent who owes child 
                support, for whom a child support 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 
                        directly from one computer system to another; 
                        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 
                (for such reasons as 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 48-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 by location of a computer terminal in each court; 
        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)(12).''.
    (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;'' and inserting 
        ``enforcement, and (F) to provide access to the national 
        network developed pursuant to section 453(g);''.
    (c) Sense of the Congress.--It is the sense of the Congress that 
the national network established under section 453(g) of the Social 
Security Act should be used to access State records only through the 
agency that administers the State plan approved under part D of title 
IV of such Act.

SEC. 42104. PRIVATE ACCESS TO LOCATE AND ENFORCEMENT SERVICES.

    Section 466(a) (42 U.S.C. 666(a)), as amended by section 42102(b) 
of this subtitle, is amended by inserting after paragraph (12) the 
following:
            ``(13)(A) Procedures under which private attorneys and pro 
        se obligees must be given access to State locate resources and 
        through enforcement techniques of the State child support 
        enforcement agency, for the purpose of establishing, modifying, 
        and enforcing child support, visitation, and parentage orders, 
        in accordance with safeguards established--
                    ``(i) to provide the custodial parent advance 
                notice of any release of information with respect to a 
                noncustodial parent; and
                    ``(ii) to prevent release of information with 
                respect to a noncustodial parent if the release may 
                jeopardize the safety of the noncustodial parent, the 
                custodial parent, or any child of either parent; and
            ``(B) The procedures described in subparagraph (A) must 
        require the State--
                    ``(i) to develop and publish guidelines 
                implementing the safeguards described in subparagraph 
                (A); and
                    ``(ii) if the State provides for reasonable fees 
                for the access referred to in subparagraph (A), to 
                establish such fees in accordance with guidelines 
                developed and published by the State that set schedules 
                for such fees.''.

SEC. 42105. 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 
        employment security 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 to be completed by a new employee to 
        enable the employee to indicate on the form--
                    (A) whether the employee owes child support, and if 
                so--
                            (i) to whom the support is payable and the 
                        amount of the support payable; and
                            (ii) whether the support is to be paid 
                        through wage withholding; and
                    (B) whether health care insurance is available to 
                the new employee, and, if so, whether the new employee 
                has obtained such insurance for the dependent children 
                of the new employee.
            (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 ON 
                                 WAGES

                              ``Sec. 3411. Child support obligations 
                                        collected at source.

``SEC. 3411. CHILD SUPPORT OBLIGATIONS COLLECTED AT SOURCE.

    ``(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--
            ``(1) information provided by the employee, or, if an 
        agency of the State in which the employer is located notifies 
        the employer that such information is inaccurate, information 
        provided by the agency; and
            ``(2) information contained in any wage withholding order 
        received by the employer from any State.
    ``(c) Liability for Payment.--The employer shall be liable for the 
payment of the specified child support obligation amount to the 
individual entitled to such payment.
    ``(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.''
                    (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.''
            (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 42104 of this subtitle, is amended by 
inserting after paragraph (13) the following:
            ``(14) Procedures under which the State shall--
                    ``(A) use the Parent Locator Service established 
                under section 453 to access information in the national 
                registry of child support orders maintained pursuant to 
                section 452(a)(12) with respect to new employee, 
                compare such information with the information reported 
                on W-4 forms of new employees, and identify child 
                support obligations not reported on such forms;
                    ``(B) if child support information from the W-4 
                form of a new employee agrees with information with 
                respect to the new employee in the national registry of 
                child support orders maintained pursuant to section 
                452(a)(12), notify the individual owed the support (or 
                the individual's designee) of such information;
                    ``(C) notify an employer of any new employee who 
                has not reported on the W-4 form a child support 
                obligation of the new employee, using the wage 
                withholding order developed under section 452(a)(14);
                    ``(D) impose monetary penalties on--
                            ``(i) any individual who owes child support 
                        and fails to report the obligation to provide 
                        the support on a Federal income tax W-4 form at 
                        time of employment;
                            ``(ii) any employer who fails to forward a 
                        W-4 form for a new employee to the State 
                        employment security agency within 10 calendar 
                        days of the date of the first payroll from 
                        which the new employee is paid; and
                            ``(iii) any employer who fails to withhold 
                        from the pay of any new employee who reports a 
                        child support obligation on a W-4 form an 
                        amount equal to the support owed, or fails to 
                        pay to the individual owed the obligation the 
                        amount so withheld, within 10 calendar days of 
                        the date of the payroll, using electronic funds 
                        transfer, if possible, unless otherwise 
                        notified by a State agency;
                    ``(E) provide the services described in this 
                paragraph to any individual owed child support who 
                applies for assistance under the State plan; and
                    ``(F) on request of another State, broadcast over 
                the Parent Locator Service to such other State child 
                support information from W-4 forms that have been sent 
                to the State employment security agency.''.

SEC. 42106. ACCESS TO LAW ENFORCEMENT RECORDS SYSTEMS.

    (a) Access by Child Support Enforcement Agencies.--The head of the 
National Criminal Information Center, the head of the National Law 
Enforcement Telecommunications Network, and the head of any other 
national or regional system for tracking individuals shall each--
            (1) allow Federal, State, and local child support 
        enforcement agencies access to the information of the system 
        for purposes of establishing paternity or a child support 
        obligation of an individual tracked by the system, using 
appropriate safeguards to prevent improper release of such information; 
and
            (2) if an access code is required to gain such access, 
        provide the access code to each child support enforcement 
        agency that applies for the code.
    (b) Loss of Federal Funding.--A non-Federal system for tracking 
individuals that fails to comply with paragraphs (1) and (2) of 
subsection (a) shall not be eligible to receive Federal funding for the 
system.

SEC. 42107. BROADCASTING OF WARRANTS ON STATE NETWORKS.

    Section 466(a) (42 U.S.C. 666(a)), as amended by section 42105 of 
this subtitle, is amended by inserting after paragraph (14) the 
following:
            ``(15) Procedures under which the State--
                    ``(A) shall broadcast on any State or local crime 
                information system each failure-to-appear warrant, 
                capias, and bench warrant issued by a State court in 
                any proceeding related to child support; and
                    ``(B) shall, in a criminal case, remit to any 
                individual to whom the defendant owes child support any 
                security posted by or on behalf of the defendant and 
                forfeited, to the extent of any arrearage in the 
                payment of the support.''.

SEC. 42108. CASE MONITORING.

    Section 454(16)(E) (42 U.S.C. 654(16)(E)) is amended by inserting 
``, not less frequently that once every 3 years'' before the semicolon.

SEC. 42109. ACCESS TO FINANCIAL RECORDS.

    Section 466(a) (42 U.S.C. 666(a)), as amended by section 42107 of 
this subtitle, is amended by inserting after paragraph (15) the 
following:
            ``(16) Procedures under which the State may obtain access 
        to financial records maintained with respect to any person by 
        any financial institution doing business in the State, for the 
        purpose of establishing or enforcing a child support obligation 
        of the person.''.

                        CHAPTER 2--ESTABLISHMENT

SEC. 42201. SERVICE OF PROCESS ON FEDERAL EMPLOYEES AND MEMBERS OF THE 
              ARMED SERVICES IN CONNECTION WITH PROCEEDINGS RELATING TO 
              CHILD SUPPORT AND PARENTAGE OBLIGATIONS.

    Part D of title IV (42 U.S.C. 651-670) is amended by inserting 
after section 460 the following:

``SEC. 460A. SERVICE OF PROCESS ON FEDERAL EMPLOYEES AND MEMBERS OF THE 
              ARMED SERVICES IN CONNECTION WITH PROCEEDINGS RELATING TO 
              CHILD SUPPORT AND PARENTAGE OBLIGATIONS.

    ``(a) In General.--The head of each Government agency shall, in 
accordance with applicable regulations under subsection (b), designate 
an agent for receipt of service of process, for any Federal employee or 
member of the Armed Forces serving in or under such agency, in 
connection with an action, brought in a court of competent jurisdiction 
within any State, territory, or possession of the United States, for 
obtaining a child support order or for establishing parentage.
    ``(b) Regulations.--Regulations governing the implementation of 
this section with respect to the executive, legislative, or judicial 
branch of the Government shall be promulgated by the authority or 
authorities responsible for promulgating regulations under section 461 
with respect to the branch of Government involved.
    ``(c) Interpretive Rule.--This section shall not be construed to 
prevent any otherwise eligible individual from requesting or being 
granted a stay or continuance in any judicial proceeding, including a 
judicial proceeding under the Soldiers' and Sailors' Civil Relief Act 
of 1940 (50 U.S.C. App. 501 et seq.).
    ``(d) Government Agency Defined.--For purposes of this section, the 
term `Government agency' means each agency of the Federal Government, 
including--
            ``(1) an Executive agency (as defined by section 105 of 
        title 5, United States Code);
            ``(2) the Department of Defense, to the extent that any 
        Federal employee serving in or under that agency or any member 
        of the Armed Services is involved;
            ``(3) the United States Postal Service and the Postal Rate 
        Commission;
            ``(4) the government of the District of Columbia;
            ``(5) an agency within the legislative or judicial branch 
        of the Government; and
            ``(6) an advisory committee to which the Federal Advisory 
        Committee Act applies.''.

SEC. 42202. PRESUMED ADDRESS OF OBLIGOR AND OBLIGEE.

    Section 466(a) (42 U.S.C. 666(a)), as amended by section 42107 of 
this subtitle, is amended by inserting after paragraph (16) the 
following:
            ``(17) Procedures under which the State shall--
                    ``(A) require the court or administrative agency 
                with authority to issue the final order in a child 
support or parentage case to require each party subject to the order to 
file with the court or administrative agency, on or before the date the 
order is issued--
                            ``(i) the party's residential address or 
                        addresses;
                            ``(ii) the party's mailing address or 
                        addresses;
                            ``(iii) the party's home telephone number 
                        or numbers;
                            ``(iv) the party's driver's license number;
                            ``(v) the party's social security account 
                        number;
                            ``(vi) the name of each employer of the 
                        party;
                            ``(vii) the addresses of each place of 
                        employment of the party; and
                            ``(viii) the party's work telephone number 
                        or numbers;
                    ``(B) require the court or administrative agency in 
                any action related to child support to presume, for the 
                purpose of providing sufficient notice (other than the 
                initial notice in an action to establish parentage or a 
                child support order), that the noncustodial parent 
                resides at the last residential address given by the 
                noncustodial parent to the court or agency, or a more 
                recent address provided in good faith by the parent 
                owed the support obligation; and
                    ``(C) ensure that information concerning the 
                location of a custodial parent or a child of the 
                custodial parent is not released to a noncustodial 
                parent if a court order has been issued against the 
                noncustodial parent for the physical protection of the 
                custodial parent or the child.''.

SEC. 42203. NOTICE TO CUSTODIAL PARENTS.

    Section 454 (42 U.S.C. 654) is amended--
            (1) by striking ``and'' at the end of paragraph (23);
            (2) by striking the period at the end of paragraph (24) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (24) the following:
            ``(25) provide that the agency administering the plan--
                    ``(A) shall make reasonable attempts to provide 
                timely notice to any individual owed child support of 
                any proceeding to establish, modify, or enforce the 
                support obligation;
                    ``(B) shall not delay any such proceeding solely 
                due to the failure of the custodial parent to appear; 
                and
                    ``(C) shall, within 14 days after the date an order 
                that establishes, modifies, or enforces a child support 
                obligation is issued, provide the custodial parent of 
                the child with a copy of the order.''.

SEC. 42204. UNIFORM STATE RULES IN PARENTAGE AND CHILD SUPPORT CASES.

    Section 466(a) (42 U.S.C. 666(a)), as amended by section 42202 of 
this subtitle, is amended by inserting after paragraph (17) the 
following:
            ``(18) Procedures under which, in the State--
                    ``(A) a party may, in a single cause of action, 
                seek judicial determination of the parentage of a child 
                and judicial establishment of a child support order 
                with respect to the child;
                    ``(B) the venue for determination of parentage of a 
                child shall be in the county of residence of the child;
                    ``(C) a court or agency that issues a parentage or 
                child support order shall have continuing and exclusive 
                jurisdiction over the order until the court or agency 
                transfers such jurisdiction to the appropriate court or 
                agency in the county of residence of the child, or the 
                parties consent to be bound by another court or agency 
                in the State that has subject matter jurisdiction;
                    ``(D) proceedings to enforce or modify of a child 
                support order may be transferred to the city, county, 
                or district in which the child resides without any 
                requirement that the order be filed or the defendant be 
                served again;
                    ``(E) a court or agency that hears a parentage or 
                child support case shall have statewide jurisdiction 
                over the parties to the case, and the parentage and 
                child support orders issued by the court or agency 
                shall have statewide effect for enforcement purposes; 
                and
                    ``(F) denial of visitation rights may not be used 
                as a defense in an action to enforce an obligation to 
                provide child support and the failure to provide child 
                support may not be used as a defense in an action to 
                enforce visitation rights.''.

SEC. 42205. FAIR CREDIT REPORTING ACT AMENDMENT.

    Section 604 of the Consumer Credit Protection Act (15 U.S.C. 1681b) 
is amended by adding at the end the following:
    ``(4) To a State agency administering a State plan under section 
454 of the Social Security Act, for use to establish or modify a child 
support award.''.

SEC. 42206. NATIONAL CHILD SUPPORT GUIDELINES COMMISSION.

    (a) Establishment.--There is hereby established a commission to be 
known as the ``National Child Support Guidelines Commission'' (in this 
section referred to as the ``Commission'').
    (b) General Duties.--The Commission shall 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, taking into 
consideration differences in the cost of living in different areas of 
the United States. In developing such guideline, the Commission shall 
consider indexing the guideline to the cost of living, specifying 
minimum (rather than maximum) amounts, or using other methodologies to 
reflect such differences.
    (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 March 15, 1997.
                    (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.
            (2) Terms of office.--Each member shall be appointed for a 
        term of 2 years. A vacancy in the Commission shall be filled in 
        the manner in which the original appointment was made.
    (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 2 years after the appointment of 
members, the Commission shall submit to the President, the Committee on 
Ways and Means of the House of Representatives, and the Committee on 
Finance of the Senate, a report 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. 42207. GUIDELINE PRINCIPLES.

    Section 467 (42 U.S.C. 667) is amended by adding at the end the 
following:
    ``(d) The guidelines established pursuant to subsection (a) shall 
be based on, and applied in accordance with, 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. The State may set a minimum timeframe 
        between reviews of modifications based on the guidelines, 
        absent other changes in circumstances.
            ``(2) Not later than January 1, 1997, each State shall 
        establish automatic child support order review procedures based 
        on the automated calculation of the amount of support to which 
        a child is entitled, to ensure that the amount is sufficient to 
        meet the needs of the child, and takes into account any changes 
        in the income of the parents of the child.
            ``(3) The State shall advise any custodial parent who is 
        not receiving aid under a State plan approved under part A of 
        the review of a child support award made with respect to a 
        child of the custodial parent, of any proposed modification in 
        the amount of the award based on the review, and of the right 
        of the custodial parent to decline to seek the modification.
    ``(e) The guidelines established pursuant to subsection (a) may 
consider the treatment of 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 school expenses incurred on behalf of the child 
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.
    ``(f) Each State must publish the guidelines established pursuant 
to subsection (a).''.

SEC. 42208. DURATION OF SUPPORT.

    (a) In General.--Section 466(a) (42 U.S.C. 666(a)), as amended by 
section 42204 of this subtitle, is amended by inserting after paragraph 
(18) the following:
            ``(19) Procedures under which the State--
                    ``(A) imposes on 1 or both parents of a child an 
                obligation to continue to provide support for the child 
                until not earlier than the later of the date the child 
                attains 18 years of age or the date the child is 
                graduated from or is no longer enrolled in secondary 
                school or its equivalent, unless the child is married 
                or is otherwise emancipated by a court of competent 
                jurisdiction;
                    ``(B) provides that courts with jurisdiction over 
                child support cases may, in accordance with criteria 
                established by the State, order--
                            ``(i) child support, payable to an adult 
                        child, at least up to the age of 22 years for a 
                        child enrolled in an accredited postsecondary 
                        or vocational school or college who is a 
                        student in good standing; and
                            ``(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 minority if 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.''.
    (b) Sense of the Congress.--It is the sense of the Congress that, 
if children receive child support while obtaining postsecondary 
education, they will attain higher levels of education affording them a 
greater chance to break the welfare cycle.

SEC. 42209. EVIDENCE.

    (a) National Subpoena Duces Tecum.--Section 452(a) (42 U.S.C. 
652(a)), as amended by sections 42210(a) and 42102(c) of this subtitle, 
is amended--
            (1) by striking ``and'' at the end of paragraph (11);
            (2) by striking the period at the end of paragraph (12) and 
        inserting a semicolon; and
            (3) by inserting after paragraph (12) the following:
            ``(13) develop and distribute a national subpoena duces 
        tecum, which shall be designed to be used by any State or local 
        child support agency or child support litigant to reach income 
        information on the prior 12 months of income or on accumulated 
        income to date of any recipient of income;
            ``(14) establish a simplified certification process and 
        admissibility procedure for out-of-State documents in child 
        support or parentage cases.''.
    (b) State Laws.--Section 466(a) (42 U.S.C. 666(a)), as amended by 
section 42208 of this subtitle, is amended by inserting after paragraph 
(19) the following:
            ``(20) Procedures under which--
                    ``(A) in a child support case in the State--
                            ``(i) the subpoena duces tecum developed 
                        pursuant to section 452(a)(13) shall be used, 
if necessary, to reach income information on the prior 12 months of 
income or on accumulated income to date of any individual;
                            ``(ii) an entity that is a source of income 
                        for the individual may comply with such a 
                        subpoena by timely mailing the information 
                        described in the subpoena to an address 
                        supplied in the subpoena;
                            ``(iii) the State shall permit such a 
                        subpoena to be enforced against such an entity 
                        in the State, with the entity bearing the 
                        burden of justifying any failure to comply with 
                        the subpoena; and
                            ``(iv) information supplied by an entity in 
                        response to such a subpoena shall be admissible 
                        to prove the truth of the information;
                    ``(B) a certified copy of an out-of-State order, 
                decree, or judgment related to child support or 
                parentage shall be admitted once offered in the courts 
                of the State if the order, decree, or judgment is 
                regular on its face;
                    ``(C) electronically transmitted information and 
                documents faxed to a court or administrative agency 
                that contain information related to the amount of a 
                child support obligation and the terms of the order 
                imposing the obligation may be offered as evidence of 
                the amount and the terms, and electronically 
                transmitted records of payment of a child support 
                agency that are regular on their face shall be 
                admissible as evidence in a child support or parentage 
                proceeding to prove the truth of the matter asserted in 
                the records;
                    ``(D) out-of-State depositions, interrogatories, 
                admissions of fact, and other discovery documents may 
                be offered and shall be admitted in a child support or 
                parentage proceeding to prove the truth of the matters 
                asserted in the documents if regular on their face and 
                if such documents comply with the appropriate discovery 
                rule or law of the State where the discovery was 
                conducted; and
                    ``(E) written, videotaped, or audiotaped evidence 
                related to a child support or parentage proceeding may 
                be offered and shall be admitted to prove the truth of 
                the matter asserted therein.''.

SEC. 42210. TELEPHONIC APPEARANCE IN INTERSTATE CASES.

    Section 466(a) (42 U.S.C. 666(a)), as amended by section 42209(b) 
of this subtitle, is amended by inserting after paragraph (20) the 
following:
            ``(21) Procedures under which the parties to an interstate 
        parentage or child support administrative or judicial 
        proceeding may appear and participate by telephonic means in 
        lieu of appearing personally.''.

SEC. 42211. UNIFORM TERMS IN ORDERS.

    (a) In General.--Section 452(a) (42 U.S.C. 652(a)) is amended--
            (1) in paragraph (9), by striking ``and'' after the 
        semicolon;
            (2) in paragraph (10), by striking the period at the end of 
        the 2nd sentence and inserting ``; and''; and
            (3) by adding at the end the following:
            ``(11) not later than 12 months after the date of the 
        enactment of this paragraph, develop, in conjunction with State 
        executive and judicial organizations, a uniform abstract of a 
        child support order, for use by all State courts to record, 
        with respect to each child support order in the child support 
        order registry established under section 466(a)(12)--
                    ``(A) the date support payments are to begin under 
                the order;
                    ``(B) the circumstances upon which support payments 
                are to end under the order;
                    ``(C) the amount of child support payable pursuant 
                to the order expressed as a sum certain to be paid on a 
                monthly basis, arrearages expressed as a sum certain as 
                of a certain date, and any payback schedule for the 
                arrearages;
                    ``(D) whether the order awards support in a lump 
                sum (nonallocated) or per child;
                    ``(E) if the award is in a lump sum, the event 
                causing a change in the support award and the amount of 
                any change;
                    ``(F) other expenses covered by the order;
                    ``(G) the names of the parents subject to the 
                order;
                    ``(H) the social security account numbers of the 
                parents;
                    ``(I) the name, date of birth, and social security 
                account number (if any) of each child covered by the 
                order;
                    ``(J) the identification (FIPS code, name, and 
                address) of the court that issued the order;
                    ``(K) any information on health care support 
                required by the order; and
                    ``(L) the party to contact if additional 
                information is obtained.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on the date of the enactment of this subtitle.

SEC. 42212. SOCIAL SECURITY NUMBERS ON MARRIAGE LICENSES, DIVORCE 
              DECREES, PARENTAGE DECREES, AND BIRTH CERTIFICATES.

    Section 466(a) (42 U.S.C. 666(a)), as amended by section 42210 of 
this subtitle, is amended by inserting after paragraph (21) the 
following:
            ``(22) Procedures under which the social security account 
        number (if any) of--
                    ``(A) each individual applying for a marriage 
                license is to be listed by the individual's name on the 
                license;
                    ``(B) each party granted a divorce decree is to be 
                listed by the party's name on the decree, if any party 
                to the decree is pregnant or a parent; and
                    ``(C) each individual determined to be a parent of 
                a child in an action to establish parentage is to be 
                listed by the individual's name on the decree 
                containing the determination; and
                    ``(D) each parent of a child is to be listed by the 
                parent's name on the child's birth certificate.''.

SEC. 42213. ADMINISTRATIVE SUBPOENA POWER.

    Section 466(a) (42 U.S.C. 666(a)), as amended by section 42212 of 
this subtitle, is amended by inserting after paragraph (22) the 
following:
            ``(23) Procedures under which the State child support 
        enforcement agency may issue a subpoena which--
                    ``(A) requires the individual served to produce and 
                deliver documents to, or to appear at, a court or 
                administrative agency on a certain date; and
                    ``(B) penalizes an individual for failing to comply 
                with the subpoena.''.

SEC. 42214. LEGAL ASSISTANCE PROGRAMS.

    (a) Use of Funds for Child Support Cases.--The Legal Services 
Corporation shall ensure that at least 10 percent of the funds it 
provides to each recipient in a fiscal year be used to assist eligible 
clients to obtain child support to which they may be entitled.
    (b) Definitions.--For purposes of this section--
            (1) the term ``child support'' means a payment of money or 
        provision of a benefit for the support of a child, and 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; and
            (2) the terms ``eligible client'' and ``recipient'' have 
        the meanings given those terms in section 1002 of the Legal 
        Services Corporation Act (42 U.S.C. 2996a).

SEC. 42215. INDIAN CHILD SUPPORT.

    (a) Sense of the Congress.--It is the sense of the Congress that--
            (1) children residing on Indian reservations be accorded 
        the same right of support that is currently afforded off-
        reservation children; and
            (2) State and tribal governments should, to the greatest 
        extent possible, ensure that jurisdictional issues do not 
        prevent any Indian child, on- or off-reservation, from 
        receiving support to which the child is entitled.
    (b) Full Faith and Credit of Support Orders.--The Indian Child 
Welfare Act of 1978 (25 U.S.C. 1901 et seq.) is amended by adding at 
the end the following:

                    ``TITLE IV--INDIAN CHILD SUPPORT

``SEC. 401. FULL FAITH AND CREDIT.

    ``(a) Every Indian tribe shall give full faith and credit to the 
public acts, records, and judicial proceedings of the United States, 
every State, and every territory or possession of the United States 
applicable to Indian child support proceedings to the same extent that 
the Indian tribe gives full faith and credit to public acts, records, 
and judicial proceedings of any other entity pursuant to section 101(d) 
of this Act.
    ``(b) The United States, every State, every territory or possession 
of the United States, and every Indian tribe shall give full faith and 
credit to the public acts, records, and judicial proceedings of any 
Indian tribe applicable to Indian child support proceedings to the same 
extent that such entities give full faith and credit to public acts, 
records, and judicial proceedings of any other entity.''.

SEC. 42216. SUPPORT ORDERS OUTREACH AND DEMONSTRATIONS.

    (a) Sense of the Congress.--It is the sense of the Congress that 
States should work with community-based organizations with ties to 
underserved populations to develop better methods to reach and work 
with such populations to encourage the filing of more support orders.
    (b) States Required To Conduct Surveys of Underserved 
Populations.--
            (1) In general.--Part D of title IV (42 U.S.C. 651-669) is 
        amended by adding at the end the following:

``SEC. 470. STATE SURVEYS OF UNDERSERVED POPULATIONS.

    ``Each State, as a condition for having a State plan approved under 
this part, must conduct surveys to identify populations underserved by 
child support services, and develop outreach programs to serve such 
populations in places such as child care centers, parenting classes, 
prenatal classes, and unemployment offices.''.
            (2) Federal financial participation.--Section 455(a)(1) (42 
        U.S.C. 655(a)(1)) is amended--
                    (A) in subparagraph (B), by striking ``and'' at the 
                end;
                    (B) in subparagraph (C) by adding ``and'' at the 
                end; and
                    (C) by inserting after subparagraph (C) the 
                following:
            ``(D) equal to 90 percent of so much of the sums expended 
        during such quarter as are attributable to operating programs 
        described in section 470,''.
    (c) Materials To Assist Persons With Low Literacy Levels.--The 
Secretary of Health and Human Services shall fund demonstration 
projects and technical assistance grants to States to develop 
applications and informational materials directed to individuals with 
low literacy levels or difficulties reading English.
    (d) Review of Written Materials.--The Secretary of Health and Human 
Services shall review all written materials provided to persons served 
by the Office of Child Support Enforcement to ensure that any 
requirement contained in the materials is presented clearly and in a 
manner that is easily understandable by such persons.
    (e) Demonstration Projects To Improve Coordination Between Certain 
State Public Assistance Agencies.--The Secretary of Health and Human 
Services shall make grants to States to conduct demonstration projects 
to test various methods for improving the coordination of services and 
case processing between the State agency referred to in section 
402(a)(3) of the Social Security Act and the State agency referred to 
in section 454(3) of such Act.
    (f) Referral of Custodial Parents to Community Resources To Combat 
Domestic Violence.--Section 454 (42 U.S.C. 654), as amended by section 
42203 of this subtitle, is amended--
            (1) by striking ``and'' at the end of paragraph (24);
            (2) by striking the period at the end of paragraph (25) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (25) the following:
            ``(26) provide that the agency administering the plan--
                    ``(A) may represent custodial parents in custody 
                cases; and
                    ``(B) must refer to appropriate community resources 
                custodial parents against whom or whose children 
                violence has been threatened as a result of cooperation 
                with a State agency in establishing or enforcing a 
                child support order, in accordance with procedures 
                developed by the State to reduce the risk of violence, 
                such as exempting the custodial parent from any 
                requirement of face-to-face meetings with persons other 
                than from the agency.''.

                          CHAPTER 3--PARENTAGE

SEC. 42301. PARENTAGE.

    (a) State Plan.--
            (1) In general.--Section 454 (42 U.S.C. 654), as amended by 
        section 42216(f) of this subtitle, is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (25);
                    (B) by striking the period at the end of paragraph 
                (26) and inserting ``; and''; and
                    (C) by inserting after paragraph (26) the 
                following:
            ``(27) in order to encourage voluntary paternity 
        acknowledgement, provide for--
                    ``(A) the development and distribution of material 
                at schools, hospitals (not later than 2 years after the 
                effective date of this paragraph), 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; 
                and
                    ``(B) the use of consent procedures.''.
            (2) Enhanced federal match.--Section 455(a)(1) (42 U.S.C. 
        655(a)(1)) is amended--
                    (A) by striking ``and'' at the end of subparagraph 
                (B);
                    (B) by inserting ``and'' at the end of subparagraph 
                (C); and
                    (C) by inserting after subparagraph (C) the 
                following:
                    ``(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 section 
                454(27) and the 2nd sentence of section 
                466(a)(5)(C);''.
    (b) State Law.--Section 466(a) (42 U.S.C. 666(a)), as amended by 
section 42213 of this subtitle, is amended by inserting after paragraph 
(23) the following:
            ``(24) Procedures under which--
                    ``(A) in a parentage case, an individual who signs 
                the signature line provided for a father on a State 
                birth certificate is rebuttably presumed to be a parent 
                of the child, and a birth certificate so signed is 
                admissible as evidence of such parentage;
                    ``(B) a simple, civil consent procedure is 
                available for individuals who agree to acknowledge 
                parentage of a child;
                    ``(C) an acknowledgment of parentage of a child--
                            ``(i) may be incorporated in a witnessed, 
                        written statement which includes a statement 
                        that the individual--
                                    ``(I) understands the consequences 
                                of paternity acknowledgment;
                                    ``(II) is signing the statement 
                                voluntarily; and
                                    ``(III) does not object to a court 
                                entering an order for parentage of the 
                                child based on the acknowledgment, 
                                without notice before the order is 
                                issued and without the requirement of 
                                pleadings, service, summons, testimony, 
                                or a hearing;
                            ``(ii) is registered as part of the process 
                        of registering the birth certificate of the 
                        child; and
                            ``(iii) is admissible in court as evidence 
                        of the individual's parentage of the child;
                    ``(D) collection of information for purposes of 
                establishing a child support obligation may be done 
                during the parentage acknowledgment process, to the 
                maximum extent consistent with the State constitution;
                    ``(E) a civil procedure (and not a criminal 
                procedure) is used in parentage determination cases;
                    ``(F) parentage is determined by a preponderance of 
                the evidence;
                    ``(G) a party may bring a parentage case without 
                joinder of the named child, and State law regarding 
                privity of the parties shall govern the res judicata 
                effect of nonjoinder;
                    ``(H) the results of a parentage test are 
                rebuttably presumed to be accurate in a parentage case, 
                if the test results are admitted as evidence of the 
                matter tested and are uncontroverted, and the test has 
                an accuracy rate of at least 98 percent;
                    ``(I) a determination of parentage may be made 
                against a noncooperative party who refuses to submit to 
                a court order to submit to parentage testing;
                    ``(J) an objection to parentage testing or to the 
                results of a parentage test must be made in writing at 
                least 21 days before trial, and if no such objection is 
made, the test results are admissible as evidence of the matter tested, 
without any requirement for the attendance of a representative of the 
hospital, clinic, or parentage laboratory that conducted the test;
                    ``(K) prenatal and post-natal parentage-testing 
                bills are admissible as evidence of parentage, without 
                any requirement of third-party foundation testimony, 
                and any such bill is prima facie evidence of the 
                expenses incurred on behalf of the child for the 
                procedures included in the bill;
                    ``(L) a default order is entered in a parentage 
                case on a proper showing of evidence of parentage and 
                of service of process on the defendant, without regard 
                to the personal presence of the plaintiff;
                    ``(M) a temporary child support order is entered 
                against an individual if--
                            ``(i) the individual is presumed to be the 
                        parent of the child by reason of the results of 
                        a parentage test;
                            ``(ii) the individual has signed a 
                        statement acknowledging parentage of the child; 
                        or
                            ``(iii) there is other clear and convincing 
                        evidence that the individual is a parent of the 
                        child;
                    ``(N) an individual determined by law to be the 
                parent of a child is precluded from claiming 
                nonparentage of the child as a defense in a child 
                support case;
                    ``(O) a single action may be brought to determine 
                the parentage of a child and to establish a child 
                support obligation with respect to the child; and
                    ``(P)(i) an action to determine the parentage of a 
                child may be brought only in the county in which the 
                child resides; and
                    ``(ii) if the child who is the subject of a 
                parentage determination action moves to another county, 
                the action is to be transferred to the other county, on 
                request of the custodial parent of the child.''.
    (c) Sense of the Congress.--It is the sense of the Congress that, 
in a proceeding to establish paternity, once paternity is alleged, the 
burden of proof should shift to the alleged father.

                         CHAPTER 4--ENFORCEMENT

SEC. 42401. DIRECT WAGE WITHHOLDING.

    (a) State Law.--Section 466(b) (42 U.S.C. 666(b)) is amended by 
adding at the end the following:
            ``(11) Upon the issuance or modification by a State court 
        or administrative agency of an order imposing a child support 
        obligation on an individual, the State shall transmit to any 
        employer of the individual a wage withholding order developed 
        under section 452(a)(14) directing the employer to withhold 
        amounts from the wages of the individual pursuant to the order, 
        subject to the Uniform Interstate Family Support Act adopted by 
        the National Conference of Commissioners on Uniform State Laws 
        in August 1992.''.
    (b) Uniform Withholding Order.--Section 452(a) (42 U.S.C. 652(a)), 
as amended by sections 42211(a), 42102(c), and 42209(a) of this 
subtitle, is amended--
            (1) by striking ``and'' at the end of paragraph (12);
            (2) by striking the period at the end of paragraph (13) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (13) the following:
            ``(14) develop a uniform order to be used in all cases in 
        which income is to be withheld for the payment of child 
        support, which shall contain the name of the individual whose 
        income is to be withheld, the number of children covered by the 
        order, and the individual or State to whom the withheld income 
        is to be paid, and be generic to allow for the service of the 
        order on all sources of income.''.

SEC. 42402. PRIORITIES IN APPLICATION OF WITHHELD WAGES.

    Section 466(b) (42 U.S.C. 666(a)), as amended by section 42401(a) 
of this subtitle, is amended by inserting after paragraph (11) the 
following:
            ``(12) Procedures under which the amounts withheld pursuant 
        to a child support or wage withholding order are to be applied 
        in the following order:
                    ``(A) To payments of support due during the month 
                of withholding.
                    ``(B) To payments of premiums for health care 
                insurance coverage for dependent children.
                    ``(C) To payments of support due before the month 
                of withholding, and of unreimbursed health care 
                expenses.''.

SEC. 42403. ADDITIONAL BENEFITS SUBJECT TO GARNISHMENT.

    (a) Federal Death Benefits, Black Lung Benefits, and Veterans 
Benefits.--Section 462(f)(2) (42 U.S.C. 662(f)(2)) is amended by 
striking ``(not including'' and all that follows through 
``compensation)''.
    (b) Workers' Compensation.--Section 462(f) (42 U.S.C. 662(f)) is 
amended--
            (1) by striking ``or'' at the end of paragraph (1);
            (2) by striking the period at the end of paragraph (2) and 
        inserting ``, or''; and
            (3) by adding at the end the following:
            ``(3) workers' compensation benefits.''.

SEC. 42404. 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) shall 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 such Act (15 U.S.C. 1671 
et seq.) is amended by adding at the end the following:

``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 such Act (15 U.S.C. 1671 et 
seq.), as amended by subsection (b) of this section, is further amended 
by adding after section 308 the following:

``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 such 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. 42405. PROHIBITION AGAINST USE OF ELECTION OF REMEDIES DOCTRINE TO 
              PREVENT COLLECTION OF CHILD SUPPORT.

    Section 466(a) (42 U.S.C. 666(a)), as amended by section 42301(b) 
of this subtitle, is amended by inserting after paragraph (24) the 
following:
            ``(25) Procedures which prohibit any State court from 
        applying the doctrine of election of remedies to prevent a 
        custodial parent from collecting or seeking to collect child 
        support from a noncustodial parent.''.

SEC. 42406. HOLD ON 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 42405 of this 
subtitle, is amended by inserting after paragraph (25) the following:
            ``(26) Procedures under which the State occupational 
        licensing and regulating departments and agencies may not issue 
        or renew any occupational, professional, or business license 
        of--
                    ``(A) a 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; and
                    ``(B) an individual who is delinquent in the 
                payment of child support, until the obligee 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 the individual is granted a 60-day 
                temporary license.''.
    (b) Federal Hold Based on Support Delinquency.--A Federal agency 
may not issue or renew any occupational, professional, or business 
license of an individual who is delinquent in the payment of child 
support, until the 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 the individual is granted a 60-day temporary 
license.

SEC. 42407. DRIVER'S LICENSES AND VEHICLE REGISTRATIONS DENIED TO 
              PERSONS FAILING TO APPEAR IN CHILD SUPPORT CASES.

    Section 466(a) (42 U.S.C. 666(a)), as amended by section 42406(a) 
of this subtitle, is amended by inserting after paragraph (26) the 
following:
            ``(27) Procedures under which the State motor vehicle 
        department--
                    ``(A) may not issue or renew the driver's license 
                or any vehicle registration (other than temporary) 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;
                    ``(B) upon receiving notice that an individual to 
                whom a State driver's license or vehicle registration 
                has been issued is the subject of a warrant related to 
                a child support proceeding, shall issue a show cause 
                order to the individual requesting the individual to 
                demonstrate why the individual's driver's license or 
                vehicle registration should not be suspended until the 
                warrant is removed by the State responsible for issuing 
                the warrant; and
                    ``(C) in any case in which a show cause order has 
                been issued as described in subparagraph (B), may grant 
                a temporary license or vehicle registration to the 
                individual pending the show cause hearing or the 
                removal of the warrant, whichever occurs first.''.

SEC. 42408. LIENS ON CERTIFICATES OF VEHICLE TITLE.

    Section 466(a) (42 U.S.C. 666(a)), as amended by section 42407 of 
this subtitle, is amended by inserting after paragraph (27) the 
following:
            ``(28) Procedures under which the State shall 
        systematically place liens on vehicle titles for child support 
        arrearages determined under a court order or an order of an 
        administrative process established under State law, using a 
        method for updating the value of the lien on a regular basis or 
        allowing for an expedited inquiry to and response from a 
        governmental payee for proof of the amount of arrears, with an 
        expedited method for the titleholder or the individual owing 
        the arrearage to contest the arrearage or to request a release 
        upon fulfilling the support obligation, and under which such a 
        lien has precedence over all other encumbrances on a vehicle 
        title other than a purchase money security interest, and that 
        the individual owed the arrearage may execute on, seize, and 
        sell the property in accordance with State law.''.

SEC. 42409. ATTACHMENT OF BANK ACCOUNTS.

    Section 466(a) (42 U.S.C. 666(a)), as amended by section 42408 of 
this subtitle, is amended by inserting after paragraph (28) the 
following:
            ``(29) Procedures under which--
                    ``(A) amounts on deposit in a bank account may be 
                seized to satisfy child support arrearages determined 
                under a court order or an order of an administrative 
                process established under State law, solely through an 
                administrative process, pending notice to and an 
                expedited opportunity to be heard from the account 
                holder or holders; and
                    ``(B) if the account holder or holders fail to 
                successfully challenge the seizure (as determined under 
                State law), the bank may be required to pay from the 
                account to the entity with the right to collect the 
                arrearage the lesser of--
                            ``(i) the amount of the arrearage; or
                            ``(ii) the amount on deposit in the 
                        account.''.

SEC. 42410. SEIZURE OF LOTTERY WINNINGS, SETTLEMENTS, PAYOUTS, AWARDS, 
              AND BEQUESTS, AND SALE OF FORFEITED PROPERTY, TO PAY 
              CHILD SUPPORT ARREARAGES.

    Section 466(a) (42 U.S.C. 666(a)), as amended by section 42409 of 
this subtitle, is amended by inserting after paragraph (29) the 
following:
            ``(30) Procedures, in addition to other income withholding 
        procedures, under which a lien is imposed against property with 
        the following effect:
                    ``(A) The distributor of the winnings from a State 
                lottery or State-sanctioned or tribal-sanctioned 
                gambling house or casino shall--
                            ``(i) suspend payment of the winnings from 
                        the person otherwise entitled to the payment 
                        until an inquiry is made to and a response is 
                        received from the State child support 
                        enforcement agency as to whether the person 
                        owes a child support arrearage; and
                            ``(ii) if there is such an arrearage, 
                        withhold from the payment the lesser of the 
                        amount of the payment or the amount of the 
                        arrearage, and pay the amount withheld to the 
                        agency for distribution.
                    ``(B) The person required to make a payment under a 
                policy of insurance or a settlement of a claim made 
                with respect to the policy shall--
                            ``(i) suspend the payment until an inquiry 
                        is made to and a response received from the 
                        agency as to whether the person otherwise 
                        entitled to the payment owes a child support 
                        arrearage; and
                            ``(ii) if there is such an arrearage, 
                        withhold from the payment the lesser of the 
                        amount of the payment or the amount of the 
                        arrearage, and pay the amount withheld to the 
                        agency for distribution.
                    ``(C) The payor of any amount pursuant to an award, 
                judgment, or settlement in any action brought in 
                Federal or State court shall--
                            ``(i) suspend the payment of the amount 
                        until an inquiry is made to and a response is 
                        received from the agency as to whether the 
                        person otherwise entitled to the payment owes a 
                        child support arrearage; and
                            ``(ii) if there is such an arrearage, 
                        withhold from the payment the lesser of the 
                        amount of the payment or the amount of the 
                        arrearage, and pay the amount withheld to the 
                        agency for distribution.
                    ``(D) If the State seizes property forfeited to the 
                State by an individual by reason of a criminal 
                conviction, the State shall--
                            ``(i) hold the property until an inquiry is 
                        made to and a response is received from the 
                        agency as to whether the individual owes a 
                        child support arrearage; and
                            ``(ii) if there is such an arrearage, sell 
                        the property and, after satisfying the claims 
                        of all other private or public claimants to the 
                        property and deducting from the proceeds of the 
                        sale the attendant costs (such as for towing, 
                        storage, and the sale), pay the lesser of the 
                        remaining proceeds or the amount of the 
                        arrearage directly to the agency for 
                        distribution.
                    ``(E) Any person required to make a payment in 
                respect of a decedent shall--
                            ``(i) suspend the payment until an inquiry 
                        is made to and a response received from the 
                        agency as to whether the person otherwise 
                        entitled to the payment owes a child support 
                        arrearage; and
                            ``(ii) if there is such an arrearage, 
                        withhold from the payment the lesser of the 
                        amount of the payment or the amount of the 
                        arrearage, and pay the amount withheld to the 
                        agency for distribution.''.

SEC. 42411. FRAUDULENT TRANSFER PURSUIT.

    Section 466(a) (42 U.S.C. 666(a)), as amended by section 42410 of 
this subtitle, is amended by inserting after paragraph (30) the 
following:
            ``(31) Procedures requiring that, in any case related to 
        child support, any transfer of property by an individual who 
        owes a child support arrearage shall be presumed to be made 
        with the intent to avoid payment of the arrearage, and may be 
        rebutted by evidence to the contrary.''.

SEC. 42412. FULL IRS COLLECTION.

    (a) Sense of the Congress.--It is the sense of the Congress that 
the Commissioner of the Internal Revenue Service 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 under section 6305 of 
the Internal Revenue Code of 1986 and reduce the amount of child 
support arrearage needed before an individual may apply for collection 
under such section.

SEC. 42413. TAX REFUND OFFSET PROGRAM EXPANDED TO COVER NON-AFDC POST-
              MINOR CHILDREN.

    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'';
            (2) by inserting ``(whether or not a minor)'' after ``a 
        child'' each place such term appears; and
            (3) by striking paragraphs (2) and (3).

SEC. 42414. ATTACHMENT OF PUBLIC AND PRIVATE RETIREMENT FUNDS.

    Section 466(a) (42 U.S.C. 666(a)), as amended by section 42411 of 
this subtitle, is amended by inserting after paragraph (31) the 
following:
            ``(32) Procedures under which an individual owed a child 
        support arrearage (determined under a court order or an order 
        of an administrative process established under State law) may, 
        notwithstanding section 401(a)(13) of the Internal Revenue Code 
        of 1986, attach any interest in any public or private 
        retirement plan of the individual who owes the support, without 
        the requirement of a separate court order, and with notice and 
        an expedited hearing provided if requested by the individual 
        who owes the support.''.

SEC. 42415. STATUTES OF LIMITATION.

    (a) In General.--Section 466(a) (42 U.S.C. 666(a)), as amended by 
section 42414 of this subtitle, is amended by inserting after paragraph 
(32) the following:
            ``(33) Procedures which permit the enforcement of any child 
        support order until the child attains at least 30 years of 
        age.''.
    (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 subtitle.

SEC. 42416. INTEREST.

    Section 466(a) (42 U.S.C. 666(a)), as amended by section 42415(a) 
of this subtitle, is amended by inserting after paragraph (33) the 
following:
            ``(34) Procedures under which the State child support 
        enforcement agency must assess and collect interest on all 
        child support judgments, at the rate determined for interest on 
        money judgments, in addition to any late payment fee imposed by 
        the State under section 454(21).''.

SEC. 42417. ARMED FORCES COOPERATION IN ENFORCEMENT OF SUPPORT 
              OBLIGATIONS OF MEMBERS AND FORMER MEMBERS OF THE ARMED 
              FORCES.

    (a) Enforcement of Support Obligations.--(1) Chapter 40 of title 
10, United States Code, is amended by adding at the end the following 
new section:
``Sec. 709. Leave for attendance at child support or related hearings; 
              availability of personnel locator service information
    ``(a) Definitions.--For purposes of this section:
            ``(1) The term `authorized person' has the meaning given 
        that term in section 453(c) of the Social Security Act (42 
        U.S.C. 653(c)).
            ``(2) The term `child support' has the meaning given such 
        term in section 462(b) of the Social Security Act (42 U.S.C. 
        662).
            ``(3) The term `court' has the meaning given that term in 
        section 1408(a)(1) of this title.
    ``(b) Facilitating the Granting of Leave for Attendance at 
Hearings.--
            ``(1) Regulations required.--The Secretary concerned shall 
        prescribe regulations to facilitate the granting of a leave of 
        absence 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 prescribed under 
        paragraph (1) 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.
    ``(c) Availability of Current Locator Information.--
            ``(1) Maintenance of address information.--Each worldwide 
        personnel locator service of the armed forces and each 
        personnel locator service of the armed forces maintained for a 
        military installation shall include the residential address of 
        each member of the armed forces listed in such service. Within 
        30 days after a change of duty station or residential address 
        of a member listed in a locator service, the Secretary 
        concerned shall update the locator service to indicate the new 
        residential address of the member.
            ``(2) Availability of information.--The Secretary of 
        Defense shall prescribe regulations to make information 
        regarding the residential address of a member of the armed 
        forces available, on request, to any authorized person for the 
        purposes of part D of title IV of the Social Security Act (42 
        U.S.C. 651 et seq.).''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``709. Leave for attendance at child support or related hearings; 
                            availability of personnel locator service 
                            information.''.
    (b) 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 (i) as subsection 
                (j); and
                    (B) by inserting after subsection (h) the following 
                new subsection:
    ``(i) Certification Date.--It is not necessary that the date of a 
certification of the authenticity or completeness of a copy of a court 
order for child support received by the Secretary concerned for the 
purposes of this section be recent in relation to the date of 
receipt.''.
            (2) Payments consistent with assignments of rights to 
        states.--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.''.
            (3) Rule of construction.--Subsection (c)(2) of such 
        section is amended--
                    (A) 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.'';
                    (B) by inserting ``(A)'' after ``(2)''; and
                    (C) by designating the last sentence as 
                subparagraph (B) and conforming the margins 
                accordingly.
    (c) Arrearages Owed by Members of the Uniformed Services.--Part D 
of title IV (42 U.S.C. 651-669) is amended by inserting after section 
465 the following:

``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. 42418. STATES REQUIRED TO ENACT THE UNIFORM INTERSTATE FAMILY 
              SUPPORT ACT.

    (a) In General.--Section 466 (42 U.S.C. 666) is amended by adding 
at the end the following:
    ``(f) In order to satisfy section 454(20)(A), each State must have 
in effect laws which--
            ``(1) adopt verbatim the officially approved version of the 
        Uniform Interstate Family Support Act adopted by the National 
        Conference of Commissioners on Uniform State Laws in August 
        1992; and
            ``(2) require the courts of the State to recognize 
        according to its terms an order issued by a court of any other 
        State adjudicating parentage of an individual over whom the 
        court of such other State has exercised personal 
        jurisdiction.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to payments under part D of title IV of the Social Security Act 
for calendar quarters ending 2 or more years after the date of the 
enactment of this subtitle.

SEC. 42419. IRS RECONCILIATION PROCESS.

    (a) In General.--The Comptroller General and the Secretary of the 
Treasury shall jointly conduct a study of the feasibility of a 
procedure under which--
            (1) past-due child support is collected from the taxpayer 
        owing such support by increasing the taxpayer's tax liability 
        for a taxable year by the past-due child support for such 
        taxable year, and
            (2) the Internal Revenue Service remits the collected past-
        due child support to the individual or governmental agency 
        entitled to receive it.
    (b) Form.--As part of the study, the Secretary of the Treasury 
shall develop an appropriate form which could be filed with a 
taxpayer's income tax return and which shows--
            (1) the child support required to be paid by the taxpayer 
        during the taxable year,
            (2) the unpaid amount of such support as of the time of 
        filing the taxpayer's income tax return for such taxable year, 
        and
            (3) the name and address of the individual or governmental 
        agency entitled to receive any payment of such unpaid amount.
    (c) Report.--The report of such study shall be submitted to 
Congress not later than 1 year after the date of the enactment of this 
subtitle.

SEC. 42420. DENIAL OF PASSPORTS TO NONCUSTODIAL PARENTS SUBJECT TO 
              STATE ARREST WARRANTS IN CASES OF NONPAYMENT OF CHILD 
              SUPPORT.

    The Secretary of State is authorized to refuse a passport or 
revoke, restrict, or limit a passport in any case in which the 
Secretary of State determines or is informed by competent authority 
that the applicant or passport holder is a noncustodial parent who is 
the subject of an outstanding State warrant of arrest for nonpayment of 
child support, where the amount in controversy is not less than 
$10,000.

SEC. 42421. DENIAL OF FEDERAL BENEFITS, LOANS, GUARANTEES, AND 
              EMPLOYMENT TO CERTAIN PERSONS WITH LARGE CHILD SUPPORT 
              ARREARAGES.

    (a) Benefits, Loans, and Guarantees.--Notwithstanding any other 
provision of law, each agency or instrumentality of the Federal 
Government may not, under any program that the agency or 
instrumentality supervises or administers, provide a benefit to, make a 
loan to, or provide any guarantee for the benefit of, any person--
            (1) whose child support arrearages, determined under a 
        court order or an order of an administrative process 
        established under State law, exceed $1,000; and
            (2) who is not in compliance with a plan or an agreement to 
        repay the arrearages.
    (b) Employment.--
            (1) In general.--Notwithstanding any other provision of 
        law, an individual shall be considered ineligible to accept 
        employment in a position in the Federal Government if--
                    (A) such individual has child support arrearages, 
                determined under a court order or an order of an 
                administrative process established under State law, 
                exceeding $1,000; and
                    (B) such individual is not in compliance with a 
                plan or agreement to repay the arrearages.
            (2) Regulations.--Regulations to carry out paragraph (1) 
        shall--
                    (A) with respect to positions in the executive 
                branch, be prescribed by the President (or his 
                designee);
                    (B) with respect to positions in the legislative 
                branch, be prescribed jointly by the President pro 
                tempore of the Senate and the Speaker of the House of 
                Representatives (or their designees); and
                    (C) with respect to positions in the judicial 
                branch, be prescribed by the Chief Justice of the 
                United States (or his designee).
            (3) Child support defined.--For purposes of this 
        subsection, the term ``child support'' has the meaning given 
        such term in section 462(b) of the Social Security Act.

SEC. 42422. STATES REQUIRED TO ORDER COURTS TO ALLOW ASSIGNMENT OF LIFE 
              INSURANCE BENEFITS TO SATISFY CHILD SUPPORT ARREARAGES.

    Section 466(a) (42 U.S.C. 666(a)), as amended by section 42416 of 
this subtitle, is amended by inserting after paragraph (34) the 
following:
            ``(35) Procedures allowing State courts to--
                    ``(A) order the issuer of a life insurance policy 
                to change the beneficiary provisions of the policy to 
                effect an assignment of the benefits payable to a 
                beneficiary under the policy, in whole or in part, to a 
                child to satisfy a child support arrearage, determined 
                under a court order or an order of an administrative 
                process established under State law, owed by the 
                beneficiary with respect to the child; and
                    ``(B) prohibit the sale, assignment, or pledge as 
                collateral of the policy, in whole or in part, by the 
                beneficiary of the policy.''.

SEC. 42423. INTERESTS IN JOINTLY HELD PROPERTY SUBJECT TO ASSIGNMENT TO 
              SATISFY CHILD SUPPORT ARREARAGES.

    Section 466(a) (42 U.S.C. 666(a)), as amended by section 42422 of 
this subtitle, is amended by inserting after paragraph (35) the 
following:
            ``(36) Procedures allowing State courts to order the 
        assignment of an interest in jointly held property to an 
        individual owed a child support arrearage (determined under a 
        court order or an order of an administrative process 
        established under State law) by a holder of an interest in the 
        property, to the extent of the arrearage.''.

SEC. 42424. INTERNATIONAL CHILD SUPPORT ENFORCEMENT.

    (a) Sense of the Congress That the United States Should Ratify the 
United Nations Convention of 1956.--It is the sense of the Congress 
that the United States should ratify the United Nations Convention of 
1956.
    (b) Treatment of International Child Support Cases as Interstate 
Cases.--Section 454 (42 U.S.C. 654), as amended by section 42301(a)(1) 
of this subtitle, is amended--
            (1) by striking ``and'' at the end of paragraph (26);
            (2) by striking the period at the end of paragraph (27) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (27) the following:
            ``(28) provide that the State must treat international 
        child support cases in the same manner as the State treats 
        interstate child support cases.''.

                 CHAPTER 5--COLLECTION AND DISTRIBUTION

SEC. 42501. PRIORITIES IN DISTRIBUTION OF COLLECTED CHILD SUPPORT.

    (a) State Distribution Plan.--Section 457 (42 U.S.C. 657) is 
amended by adding at the end the following:
    ``(e) The amounts that a State collects as child support (including 
interest) pursuant to a plan approved under this part, other than 
amounts so collected through a tax refund offset, shall (subject to 
subsection (d)) be paid--
            ``(1) first to the individual owed the support or (if the 
        individual assigned to the State the payment of the support) to 
        the State, to the extent necessary to satisfy the current 
        month's support obligation;
            ``(2) then to the individual owed the support, to the 
        extent necessary to satisfy any arrearage that accrued after 
        assistance with respect to the child under this title ended;
            ``(3) then, at the option of the State--
                    ``(A) to the individual owed the support, to the 
                extent necessary to satisfy any arrearage that accrued 
                before assistance was provided with respect to the 
                child under this title; or
                    ``(B) to the State, to the extent necessary to 
                reimburse the State for assistance provided with 
                respect to the child under this title (without 
                interest); and
            ``(4) then to other States, to the extent necessary to 
        reimburse such other States for assistance provided with 
        respect to the child under this title (without interest), in 
        the order in which such assistance was provided.''.
    (b) Study and Pilot Projects.--
            (1) In general.--The Comptroller General of the United 
        States shall conduct studies and pilot projects of systems 
        under which States would be required to pay the child support 
        collected pursuant to a State plan approved under part D of 
        title IV of the Social Security Act to the individuals to whom 
        the support is owed before making any payment to reimburse any 
        State for assistance provided with respect to the child under 
        part A of such title.
            (2) Report to the congress.--Within 3 years after the date 
        of the enactment of this subtitle, the Comptroller General 
        shall submit to the Committee on Ways and Means of the House of 
        Representatives and the Committee on Finance of the Senate a 
        report on each study and pilot project conducted pursuant to 
        paragraph (1), including a cost-benefit analysis and an 
        analysis of the costs that would be avoided under the program 
        of aid to families with dependent children under part A of 
        title IV of the Social Security Act, the program of medical 
        assistance under title XIX of such Act, and the food stamp 
        program under the Food Stamp Act of 1977, if the various 
        systems studied were implemented.
            (3) Sense of the congress.--It is the sense of the Congress 
        that, if the report submitted pursuant to paragraph (2) 
        demonstrates that there would be a net benefit to society if a 
        system described in paragraph (1) were implemented, then 
        Federal law should provide that States implement the system.
    (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) in subsection (c), by striking ``after any other 
        reductions allowed by law (but before'' and inserting ``before 
        any other reductions allowed by law (and before''; and
            (2) in subsection (d), by striking ``with respect to past-
        due support collected pursuant to an assignment under section 
        402(a)(26) of the Social Security Act''.
    (d) $50 Disregarded for All Means-Tested Programs.--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 or the amount of assistance based on the income or assets of the 
applicant for or recipient of the assistance'' after ``during such 
month''.
    (e) Fill-The-Gap Policies Allowed.--Section 402(a)(28) (42 U.S.C. 
602(a)(28)) is amended by striking the open parenthesis and all that 
follows through the close parenthesis.

SEC. 42502. STATE CLAIMS AGAINST NONCUSTODIAL PARENT LIMITED TO 
              ASSISTANCE PROVIDED TO THE CHILD.

    Section 466(a) (42 U.S.C. 666(a)), as amended by section 42423 of 
this subtitle, is amended by inserting after paragraph (36) the 
following:
            ``(37)(A) Procedures under which any claims the State may 
        have against a noncustodial parent for a child's portion of the 
        assistance provided under a State plan approved under part A 
        shall not exceed the amount specified as child support under a 
        court or administrative order.
            ``(B) As used in subparagraph (A), the term `child's 
        portion' means the assistance that would have been provided 
        with respect to the child if the needs of the caretaker 
        relative of the child had not been taken into account in making 
        the determination with respect to the child's family under 
        section 402(a)(7).''.

SEC. 42503. FEES FOR NON-AFDC CLIENTS.

    (a) In General.--Section 454(6) (42 U.S.C. 654(6)) is amended--
            (1) in subparagraph (B), by striking ``or recovered'' and 
        all that follows through ``program)'';
            (2) in subparagraph (C), by inserting ``on the parent who 
        owes the child or spousal support obligation involved'' after 
        ``imposed'';
            (3) in subparagraph (D), by striking ``individual who'' and 
        inserting ``the noncustodial parent if the child whose 
        parentage is to be determined through the tests''; and
            (4) in subparagraph (E), by striking all that follows ``may 
        be collected'' and inserting ``from the parent who owes the 
        child or spousal support obligation involved, but only after 
        all current and past-due support and interest charges have been 
        collected''.
    (b) Publication of Fee Schedules.--Section 454(10) (42 U.S.C. 
654(10)) is amended by inserting ``, and shall publish guidelines and 
schedules of fees which may be imposed under paragraph (6), and which 
shall be reasonable'' before the semicolon.

SEC. 42504. COLLECTION AND DISBURSEMENT POINTS FOR CHILD SUPPORT.

    Section 454 (42 U.S.C. 654), as amended by section 42424(b) of this 
subtitle, is amended--
            (1) by striking ``and'' at the end of paragraph (27);
            (2) by striking the period at the end of paragraph (28) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (28) the following:
            ``(29) provide for only 1 location, or several local or 
        regional locations for the collection of, accounting for, and 
        disbursement of child support in cases enforced under the State 
        plan under this part.''.

SEC. 42505. SENSE OF THE CONGRESS THAT STATES SHOULD ENCOURAGE PARENTS 
              TO USE THE STATE CHILD SUPPORT AGENCY TO COLLECT AND 
              PROCESS CHILD SUPPORT PAYMENTS.

    It is the sense of the Congress that States should encourage all 
parents to use the State child support agency to process and distribute 
child support payments in order to establish an official record of such 
payments.

                        CHAPTER 6--FEDERAL ROLE

SEC. 42601. PLACEMENT AND ROLE OF THE OFFICE OF CHILD SUPPORT 
              ENFORCEMENT.

    Section 452(a) (42 U.S.C. 652(a)), as amended by section 42401(b) 
of this subtitle, is amended--
            (1) in the matter preceding paragraph (1), by striking ``, 
        under the direction'' and all that follows through ``and who'' 
        and inserting ``which shall be known as the Office of Child 
        Support Enforcement, shall be under the direction of an 
        Assistant Secretary appointed by the President with the advice 
        and consent of the Senate, and shall have its own legal 
        counsel. The Assistant Secretary shall report directly to the 
        Secretary and'';
            (2) in paragraph (10)--
                    (A) in subparagraph (A), by inserting ``using a 
                methodology that reflects cost-avoidance as well as 
                cost-recovery'' after ``the States and the Federal 
                Government'';
                    (B) by redesignating subparagraphs (H) and (I) as 
                subparagraphs (I) and (J), respectively; and
                    (C) by inserting after subparagraph (G) the 
                following:
                    ``(H) the budgetary allocation of the $50 pass 
                through equally between part A and this part;'';
            (3) by striking ``and'' at the end of paragraph (13);
            (4) by striking the period at the end of paragraph (14) and 
        inserting ``; and''; and
            (5) by inserting after paragraph (14) the following:
            ``(15) initiate and actively pursue with other Federal 
        agencies, such as the Department of Defense, coordinated 
        efforts on Federal legislation.''.

SEC. 42602. 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 42504 of this subtitle, is amended--
            (1) by striking ``and'' at the end of paragraph (28);
            (2) by striking the period at the end of paragraph (29) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (29) the following:
            ``(30) provide that the State will develop and implement a 
        training program under which training is to be provided not 
        less frequently than annually to all personnel performing 
        functions under the State plan.''.
    (c) Report.--Section 452(a)(10) (42 U.S.C. 652(a)(10)), as amended 
by section 42601(2) of this subtitle, is amended by redesignating 
subparagraphs (I) and (J) as subparagraphs (J) and (K), respectively, 
and by inserting after subparagraph (H) the following:
                    ``(I) the training activities at the Federal and 
                State levels, the training audit, and the amounts 
                expended on training;''.

SEC. 42603. STAFFING.

    (a) Studies.--The Secretary of Health and Human Services shall 
conduct and, not later than 1 year after the date of the enactment of 
this subtitle, complete staffing studies for each State child support 
enforcement program, including each agency and court involved in the 
child support process.
    (b) Report to the Congress.--Within 90 days after the end of the 1-
year period described in subsection (a), the Secretary shall report to 
the Committee on Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate, and to each State, the results of 
the studies required by subsection (a).
    (c) Implementation.--The Secretary of Health and Human Services 
shall reduce by 2 percent the amount otherwise payable to a State 
pursuant to section 455(a)(1)(A) of the Social Security Act for any 
calendar quarter ending 2 or more years after the State receives a 
report transmitted pursuant to subsection (b), if the Secretary 
determines that, during the quarter, the State has not implemented the 
staffing levels recommended in the report.

SEC. 42604. DEMONSTRATION PROJECTS TO TEST ALTERNATIVE APPROACHES TO 
              INCENTIVE FUNDING FOR STATE CHILD SUPPORT PROGRAMS.

    (a) In General.--The Secretary of Health and Human Services shall 
authorize 3 States to carry out demonstration projects under which--
            (1) the State is to implement the State plan approved under 
        part D of title IV of the Social Security Act so as to promote 
        quality control and provide incentives for enforcement of 
        health care support;
            (2) in lieu of applying subsections (b) and (c) of section 
        458 of such Act to the States, the incentive payment to a State 
        for a fiscal year shall be--
                    (A) not less than 65 percent of the total amount 
                expended to carry out the plan during the fiscal year 
                if the performance of the State in implementing the 
                plan meets such minimum performance standards as the 
                Secretary shall prescribe by regulation; and
                    (B) not more than 90 percent of such total amount 
                if the performance significantly exceeds the standards; 
                and
            (3) a payment to a State under this subsection is deemed a 
        payment to the State under such section 458.
    (b) Report.--The Secretary of Health and Human Services and the 
Comptroller General of the United States shall evaluate each 
demonstration project carried out under subsection (a) and report to 
the Committee on Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate the results and their 
recommendations.
    (c) Health Care Support Included in Incentive Payment Formula.--
Section 458 (42 U.S.C. 658) is amended by adding at the end the 
following:
    ``(f) For purposes of this section, the term `support' includes 
premiums paid for health insurance coverage pursuant to a support 
order.''.
    (d) Minimum State Funding of Child Support Activities.--The 
Secretary of Health and Human Services shall reduce by 2 percent the 
amount otherwise payable to a State pursuant to section 455(a)(1)(A) of 
the Social Security Act for any of the 5 fiscal years that begin after 
the date of the enactment of this subtitle (in this subsection referred 
to as ``investment years''), if the Secretary determines that, during 
the investment year, the State has not expended on the program under 
the State plan approved under part D of title IV of such an amount 
equal to the sum of--
            (1) the amount the State expends on the program during the 
        fiscal year in which this subtitle becomes law (in this 
        subsection referred to as the ``base year''); plus
            (2)(A) in the case of the 1st investment year, 60 percent 
        of the amount paid to the State under section 458 of such Act 
        for the base year;
            (B) in the case of the 2nd investment year, 70 percent of 
        the amount so paid to the State;
            (C) in the case of the 3rd investment year, 80 percent of 
        the amount so paid to the State;
            (D) in the case of the 4th investment year, 90 percent of 
        the amount so paid to the State; and
            (E) in the case of the 5th investment year, 100 percent of 
        the amount so paid to the State.
    (e) Sense of the Congress.--It is the sense of the Congress that 
States should not use amounts paid to the States pursuant to part D of 
title IV of the Social Security Act, which are reinvested in child 
support activities, to supplant State funding of such activities.

SEC. 42605. CHILD SUPPORT DEFINITION.

    (a) In General.--Section 452 (42 U.S.C. 652) is amended by adding 
at the end the following:
    ``(j) For purposes of this part, the term `child support' shall 
have the meaning given such term in section 462(b).''.
    (b) Conforming Amendments.--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. 42606. AUDITS.

    (a) Study.--
            (1) Contract authority.--The Secretary of Health and Human 
        Services shall enter into a contract for a study of the audit 
        process of the Office of Child Support Enforcement to develop 
        criteria and methodology for auditing the activities of State 
        child support enforcement agencies pursuant to part D of title 
        IV of the Social Security Act.
            (2) Design of study.--The study shall be designed to--
                    (A) identify ways to improve the auditing process, 
                including by--
                            (i) reducing the resources required to 
                        perform the audit;
                            (ii) simplifying procedures for States to 
                        follow in obtaining samples;
                            (iii) studying the feasibility of sampling 
                        cases for needed action rather than requiring 
                        sampling plans for each audit criterion; and
                            (iv) a more timely audit period of review; 
                        and
                    (B) develop a penalty process which--
                            (i) focuses on improving the delivery of 
                        child support services and not harming 
                        families;
                            (ii) uses a penalty not tied to any 
                        reduction of funds payable to States under part 
                        A of title IV of the Social Security Act; and
                            (iii) should include the escrowing of funds 
                        withheld as penalties for use by States to 
                        improve their child support programs in a 
                        manner approved by the Secretary of Health and 
                        Human Services.
    (b) Report.--Not later than 90 days after completion of the study 
required by subsection (a), the Secretary of Health and Human Services 
shall submit to the Committee on Ways and Means of the House of 
Representatives and the Committee on Finance of the Senate a report on 
the results of the study.
    (c) Limitation on Cases Included in Audits.--Section 452(a)(4) (42 
U.S.C. 652(a)(4)) is amended--
            (1) by inserting ``(A)'' after ``(4)'';
            (2) by adding ``and'' at the end; and
            (3) by adding after and below the end the following:
            ``(B) notwithstanding subparagraph (A), each audit under 
        subparagraph (A) shall be limited to cases open on the date the 
        audit begins and cases closed within 180 days before such date, 
        unless the Secretary has determined, in accordance with 
        regulations, that there is a need for a longitudinal review of 
        case handling that includes cases that have been closed for 
        more than 180 days;''.

SEC. 42607. CHILD SUPPORT ASSURANCE DEMONSTRATION PROJECTS.

    (a) Sense of the Congress.--It is the sense of the Congress that 
children should have a consistent source of income to meet their 
education and medical needs.
    (b) Sense of the Congress.--It is the sense of the Congress that 
the provision of public assistance to a custodial parent for the 
support of a child with respect to whom a noncustodial parent owes 
child support does not absolve the noncustodial parent of the 
obligation to provide such support.
    (c) Sense of the Congress.--It is the sense of the Congress that 
the States must continue to vigorously pursue efforts to establish 
parentage, and establish and enforce child support obligations.
    (d) Child Support Assurance Demonstration Projects.--
            (1) Purpose.--The purpose of this subsection is to test the 
        feasibility and utility of ensuring that custodial parents owed 
        child support have a consistent source of income for the 
        support of their children, by authorizing States to conduct 
        projects demonstrating various methods for doing so.
            (2) Consideration of applications.--
                    (A) In general.--The Secretary of Health and Human 
                Services (in this section referred to as the 
                ``Secretary'') shall consider applications to conduct 
                demonstration projects under this subsection received 
                only from eligible States.
                    (B) Eligible state defined.--For purposes of 
                subparagraph (A), a State is an eligible State if--
                            (i) the child support collection ratio for 
                        the State for the most recent fiscal year for 
                        which such information is available exceeds the 
                        child support collection ratio for the United 
                        States for the fiscal year; or
                            (ii) AFDC support collection ratio for the 
                        State for the most recent fiscal year for which 
                        such information is available exceeds the AFDC 
                        support collection ratio for the United States 
                        for the fiscal year.
                    (C) Child support collection ratio.--As used in 
                subparagraph (B), the term ``child support collection 
                ratio'' means, with respect to a fiscal year--
                            (i) for a State--
                                    (I) the total amount expended by 
                                the State during the fiscal year for 
                                the operation of the plan approved 
                                under section 454 of the Social 
                                Security Act; divided by
                                    (II) the total amount of support 
                                collected by the State during the 
                                fiscal year in all cases under part D 
                                of title IV of such Act; and
                            (ii) for the United States--
                                    (I) the total amount expended by 
                                the States during the fiscal year for 
                                the operation of the plans approved 
                                under such section; divided by
                                    (II) the total amount of support 
                                collected by the States during the 
                                fiscal year in all cases under such 
                                part.
                    (D) AFDC support collection ratio.--As used in 
                subparagraph (B), the term ``AFDC support collection 
                ratio'' means, with respect to a fiscal year--
                            (i) for a State--
                                    (I) the total amount expended by 
                                the State during the fiscal year for 
                                the operation of the plan approved 
                                under section 454 of the Social 
                                Security Act; divided by
                                    (II) the total amount of support 
                                collected by the State under the plan 
                                during the fiscal year in cases in 
                                which the support obligation involved 
                                is assigned to the State pursuant to 
                                section 402(a)(26) or section 
                                471(a)(17) of such Act; and
                            (ii) for the United States--
                                    (I) the total amount expended by 
                                the States during the fiscal year for 
                                the operation of the plans approved 
                                under such section 454; divided by
                                    (II) the total amount of support 
                                collected by the States under the plans 
                                during the fiscal year in cases in 
                                which the support obligation involved 
                                is assigned to a State pursuant to 
                                section 402(a)(26) or section 
                                471(a)(17) of such Act.
            (3) Application requirements.--Each application of a State 
        to conduct a demonstration project under this subsection must 
        describe a demonstration project that meets the following 
        requirements:
                    (A) Project beneficiaries.--A child support 
                assurance benefit is payable under the project to the 
                caretaker of a child if--
                            (i) the child is an eligible child; and
                            (ii) the caretaker has applied for services 
                        under the State plan approved under part D of 
                        title IV of the Social Security Act.
                    (B) Eligible children.--A child is an eligible 
                child if--
                            (i) the child resides in the State;
                            (ii) the child has a living noncustodial 
                        parent;
                            (iii) a good faith effort has been made to 
                        seek or enforce an order for such parent to 
                        provide support for the child, or there is good 
                        cause for not seeking or enforcing such an 
                        order; and
                            (iv) any rights to support owed the child 
                        have been assigned to the State, to the extent 
                        of the child support assurance benefits 
                        received with respect to the child under the 
                        project.
                    (C) Amount of child support assurance benefit.--The 
                amount of the child support assurance benefit payable 
                under the project to the caretaker of 1 or more 
                eligible children is the amount by which--
                            (i) the child support assurance threshold; 
                        exceeds
                            (ii) the dollar value of the child support 
                        (if any) received during the month by the 
                        caretaker from the noncustodial parent for the 
                        support of any eligible child.
                    (D) Child support assurance threshold.--The child 
                support assurance threshold is \1/12\ of--
                            (i) $2,000 for the 1st eligible child; plus
                            (ii) $1,000 for the 2nd eligible child (if 
                        any); plus
                            (iii) $500 for each subsequent eligible 
                        child (if any).
            (4) Methods to be tested.--In approving applications to 
        conduct demonstration projects under this subsection, the 
        Secretary shall ensure that the applications approved under 
        this subsection describe projects which, in the aggregate, are 
        designed to test the following:
                    (A) Administrative versus other processing.--The 
                feasibility of implementing a statewide child support 
                assurance benefit in a State which processes child 
                support and parentage cases administratively, as 
                opposed to the feasibility of implementing such a 
                benefit in a State which processes such cases only 
                judicially or quasi-judicially.
                    (B) Allowance of good cause exceptions.--The 
                effects of prohibiting the provision of a child support 
                assurance benefit with respect to a child unless an 
                order for the support of the child has been established 
                and the caretaker of the child has made a good faith 
                effort to enforce the order, as opposed to allowing 
                good cause exceptions to the prohibition.
                    (C) Timing of benefits.--The effects of providing 
                child support assurance benefits immediately upon the 
                establishment of a child support order, as opposed to 
                providing such benefits only after a period (determined 
                by the Secretary) of nonreceipt of child support. The 
                Secretary may select 1 or more such periods to be 
                tested in different demonstration projects.
                    (D) Relationship of benefits to other income and 
                benefits.--The effects of reducing the amount payable 
                with respect to a child under the State plan approved 
                under part A of title IV of the Social Security Act by 
                a portion (determined by the Secretary) of the child 
                support assurance benefit provided by the State with 
                respect to the child, as opposed to reducing the child 
                support assurance benefit provided by the State with 
                respect to the child by a portion (determined by the 
                Secretary) of the earned income of the family of the 
                child. The Secretary may select 1 or more such portions 
                of benefits or of earned income to be tested in 
                different demonstration projects.
            (5) Priority to be given to projects that include work 
        incentives.--In approving applications to conduct demonstration 
        projects under this subsection, the Secretary shall give 
        priority among otherwise equivalent applications to 
        applications that describe projects that include work 
        incentives for participants.
            (6) Approval of certain applications.--The Secretary shall 
        approve not more than 5 applications to conduct demonstration 
        projects under this subsection which appear likely to 
        contribute significantly to the achievement of the purpose of 
        this subsection.
            (7) Other requirements.--Each State whose application to 
        conduct a demonstration project under this subsection has been 
        approved by the Secretary shall conduct the project in 
        accordance with such regulations as the Secretary may 
        prescribe.
            (8) Funding.--From the sums appropriated to carry out this 
        subsection, the Secretary shall pay to each State whose 
        application to conduct a demonstration project under this 
        subsection has been approved by the Secretary, for each month, 
        an amount equal to--
                    (A) 90 percent of the aggregate amount of the child 
                support assurance benefits paid by the State during the 
                month if, during the month, the project has met such 
                performance goals as the Secretary has established for 
                the project; or
                    (B) 80 percent of such aggregate amount, otherwise.
            (9) Modified priority of distribution of child support 
        collected for children with respect to whom child support 
        assurance benefit is paid.--In lieu of paragraph (1) of section 
        457(e) of the Social Security Act, child support collected from 
        a noncustodial parent of a child with respect to whom a child 
        support assurance benefit is paid under a demonstration project 
        conducted under this subsection shall (subject to section 
        457(d) of such Act) be paid--
                    (A) first to the State, to the extent necessary to 
                reimburse the State for the portion of the benefit not 
                paid from funds provided under paragraph (8) of this 
                subsection; and
                    (B) then to the Federal Government, to the extent 
                necessary to reimburse the Federal Government for the 
portion of the benefit paid from funds provided under paragraph (8) of 
this subsection.
            (10) Duration of projects.--
                    (A) In general.--Each State whose application to 
                conduct a demonstration project under this subsection 
                has been approved by the Secretary shall conduct the 
                project for not less than 3 years and not more than 5 
                years.
                    (B) Authority to terminate projects.--The Secretary 
                may terminate a demonstration project conducted under 
                this subsection if the Secretary determines that the 
                project is not being conducted consistent with or 
                satisfactorily under this subsection.
            (11) Evaluations.--Each State which conducts a 
        demonstration project under this subsection shall prepare and 
        submit to the Secretary an interim and a final evaluation of 
        the project with respect to the impact of the project on--
                    (A) the economic and noneconomic well-being of the 
                participants in the project and of the work force 
                generally; and
                    (B) participation in and expenditures under the 
                program of the State under the State plan approved 
                under part A of title IV of the Social Security Act.
            (12) Report to the congress.--Within 1 year after the 
        completion of all demonstration projects conducted under this 
        subsection, the Secretary shall submit to the Committee on Ways 
        and Means of the House of Representatives and the Committee on 
        Finance of the Senate a report that contains a consolidated 
        evaluation of the projects.

SEC. 42608. CHILDREN'S TRUST FUND.

    (a) Designation of Contributions.--
            (1) In general.--Subchapter A of chapter 61 of the Internal 
        Revenue Code of 1986 (relating to returns and records) is 
        amended by adding at the end thereof the following new part:

           ``PART IX--CONTRIBUTIONS TO CHILDREN'S TRUST FUND

                              ``Sec. 6097. Amounts for Children's Trust 
                                        Fund.

``SEC. 6097. AMOUNTS FOR CHILDREN'S TRUST FUND.

    ``Each taxpayer may include with such taxpayer's return of tax 
imposed by chapter 1 for any taxable year a contribution by the 
taxpayer to the Children's Trust Fund.''.
            (2) Clerical amendment.--The table of parts for subchapter 
        A of chapter 61 of the Internal Revenue Code of 1986 is amended 
        by adding at the end thereof the following new item:

                              ``Part IX--Contributions for Children's 
                                        Trust Fund.''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to taxable years beginning after December 31, 1994.
    (b) Establishment of Children's Trust Fund.--
            (1) In general.--Subchapter A of chapter 98 of the Internal 
        Revenue Code of 1986 (relating to the trust fund code) is 
        amended by adding at the end thereof the following new section:

``SEC. 9512. CHILDREN'S TRUST FUND.

    ``(a) Creation of Trust Fund.--There is established in the Treasury 
of the United States a trust fund to be known as the `Children's Trust 
Fund', consisting of such amounts as may be appropriated or credited to 
the Trust Fund as provided in this section or section 9602(b).
    ``(b) Transfer to Children's Trust Fund of Amounts Designated.--
There is hereby appropriated to the Children's Trust Fund amounts 
equivalent to the amounts contributed to such Trust Fund under section 
6097.
    ``(c) Expenditures From Trust Fund.--
            ``(1) In general.--Amounts in the Children's Trust Fund 
        shall be available for making expenditures for programs 
        regarding child support and the specific mandates described in 
        part D of title IV of the Social Security Act, especially such 
        mandates established by the amendments made by the Economic 
        Equity Act of 1996.
            ``(2) Administrative expenses.--Amounts in the Children's 
        Trust Fund shall be available to pay the administrative 
        expenses of the Department of the Treasury directly allocable 
        to--
                    ``(A) modifying the individual income tax return 
                forms to carry out section 6097,
                    ``(B) carrying out this chapter with respect to 
                such Trust Fund, and
                    ``(C) processing amounts received under section 
                6097 and transferring such amounts to such Trust 
                Fund.''.
            (2) Clerical amendment.--The table of sections for 
        subchapter A of chapter 98 of the Internal Revenue Code of 1986 
        is amended by adding at the end thereof the following new item:

                              ``Sec. 9512. Children's Trust Fund.''.

SEC. 42609. STUDY OF REASONS FOR NONPAYMENT OF CHILD SUPPORT; REPORT.

    (a) Study.--The Comptroller General of the United States shall--
            (1) conduct a study of the causes of delinquency in the 
        payment of child support, including the nonpayment of child 
        support by noncustodial parents and failure of custodial 
        parents to cooperate in the collection of child support; and
            (2) if a sufficient number of studies of this matter are 
        available, review the studies.
    (b) Report to the Congress.--Within 1 year after the date of the 
enactment of this subtitle, the Comptroller General shall submit to the 
Committee on Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate, and to the Office of Child Support 
Enforcement, a report that contains the results of the study required 
by subsection (a), and a consolidated summary of the studies described 
in subsection (a)(2).

SEC. 42610. STUDY OF EFFECTIVENESS OF ADMINISTRATIVE PROCESSES; REPORT.

    (a) Study.--The Comptroller General of the United States shall 
conduct a study of the effectiveness of the processing of child support 
and parentage cases in States that use administrative processes as 
compared with States that use judicial or quasi-judicial processes.
    (b) Report to the Congress.--Within 1 year after the date of the 
enactment of this subtitle, the Comptroller General shall submit to the 
Committee on Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate a report that contains the results 
of the study required by subsection (a).

SEC. 42611. PUBLICATION OF BEST CHILD SUPPORT PRACTICES.

    (a) Sense of the Congress.--It is the sense of the Congress that 
the Office of Child Support Enforcement should develop a mechanism to 
publicize the best practices of States in the area of child support.
    (b) Compendium of State Child Support Statutes.--The Office of 
Child Support Enforcement shall produce and update the compendium 
entitled ``A Guide To State Child Support And Paternity Laws'', 
published by the National Conference of State Legislatures.

SEC. 42612. ESTABLISHMENT OF PERMANENT CHILD SUPPORT ADVISORY 
              COMMITTEE.

    (a) In General.--The Office of Child Support Enforcement shall 
establish an advisory committee on child support matters composed of 
Federal and State legislators, State child support officials, and 
representatives of custodial and noncustodial parents.
    (b) Functions.--The advisory committee established pursuant to 
subsection (a) shall--
            (1) provide oversight of the implementation of Federal laws 
        and regulations affecting child support, and the operation of 
        Federal, State, and local child support programs; and
            (2) provide a forum through which child support problems 
        experienced by parents, State agencies, the courts, and the 
        private bar may be identified, and from which recommendations 
        on how to solve such problems may be reported to the Secretary 
        of Health and Human Services and to the Congress.
    (c) Permanency.--Section 14 of the Federal Advisory Committee Act 
(5 U.S.C. App.) shall not apply to the advisory committee established 
pursuant to subsection (a) of this section.

                         CHAPTER 7--STATE ROLE

SEC. 42701. ADVOCATION OF CHILDREN'S ECONOMIC SECURITY.

    Section 454 (42 U.S.C. 654), as amended by section 42602(b) of this 
subtitle, is amended--
            (1) by striking ``and'' at the end of paragraph (29);
            (2) by striking the period at the end of paragraph (30) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (30) the following:
            ``(31) provide that the agency administering the plan shall 
        advocate to promote the greatest economic security possible for 
        children, consistent with the ability of any individual who 
        owes child support with respect to the child to provide the 
        support.''.

SEC. 42702. DUTIES OF STATE CHILD SUPPORT AGENCIES.

    Section 454 (42 U.S.C. 654), as amended by section 42701 of this 
subtitle, is amended--
            (1) by striking ``and'' at the end of paragraph (30);
            (2) by striking the period at the end of paragraph (31) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (31) the following:
            ``(32) provide that the agency administering the plan shall 
        provide to each custodial parent--
                    ``(A) a written description of the services 
                available under the plan, and a statement describing 
                the priorities applied in distributing collected child 
                support and the rules governing confidentiality of 
                information in child support matters;
                    ``(B) a statement that at least 30 days before the 
                agency consents to the dismissal of a child support 
                case with prejudice or a reduction of arrearages, the 
                agency must provide notice to the custodial parent at 
                the last known address of the custodial parent;
                    ``(C) written quarterly reports on the status of 
                any case involving the custodial parent;
                    ``(D) a statement that the State is required to 
                provide services under the plan to any custodial parent 
                who is eligible for aid under the State plan approved 
                under part A; and
                    ``(E) a statement that any custodial parent who 
                applies for services under the plan is eligible for 
                such services, and that any application fee for such 
                services is deferred pending determination of the 
                eligibility of the custodial parent for aid under the 
                State plan approved under part A.''.

SEC. 42703. SENSE OF THE CONGRESS REGARDING QUALITY OF AND 
              ACCESSIBILITY TO CHILD SUPPORT SERVICES.

    It is the sense of the Congress that--
            (1) States should work closely with parents to improve the 
        quality of child support services; and
            (2) State and local child support enforcement agencies 
        should have--
                    (A) offices in easily accessible locations near 
                public transportation;
                    (B) office hours that allow parents to meet with 
                attorneys and caseworkers without having to take time 
                off from work; and
                    (C) office environments conducive to private 
                discussion of legal and personal matters, such as in 
                individual interview rooms and child care facilities.

SEC. 42704. ADMINISTRATIVE PROCESS FOR CHANGE OF PAYEE IN IV-D CASES.

    Section 466(a) (42 U.S.C. 666(a)), as amended by section 42502 of 
this subtitle, is amended by inserting after paragraph (37) the 
following:
            ``(38) Procedures under which only administrative 
        procedures are required to change the payee under a child 
        support order in a case under this part, if a statement by an 
        official of the State child support enforcement agency is 
        included in the court or administrative file documenting the 
        change.''.

SEC. 42705. SENSE OF THE CONGRESS SUPPORTING USE OF ADMINISTRATIVE 
              PROCEDURES IN CHILD SUPPORT CASES.

    It is the sense of the Congress that each State should establish 
administrative procedures to process child support cases.

SEC. 42706. SENSE OF THE CONGRESS SUPPORTING ESTABLISHMENT OF STATE 
              CHILD SUPPORT COUNCILS.

    It is the sense of the Congress that each State should establish a 
child support council, composed of members from all over the State, 
to--
            (1) review State laws on child support and paternity;
            (2) recommend improvements in child support and paternity 
        programs and in such laws; and
            (3) serve as a public forum for custodial and noncustodial 
        parents on matters related to child support and paternity.

          CHAPTER 8--JOBS FOR UNEMPLOYED NONCUSTODIAL PARENTS

SEC. 42801. PARENTS FAIR SHARE DEMONSTRATION PROJECTS.

    (a) Sense of the Congress.--It is the sense of the Congress that 
any program established by the Federal Government to provide jobs for 
noncustodial parents should be administered so as not to adversely 
affect any Federal program for custodial parents, either directly or 
through competition for available funds.
    (b) Evaluation of Projects; Report to the Congress; Conditional 
Authority to Conduct Additional and More Extensive Projects.--Upon 
receiving the evaluations required to be provided pursuant to section 
482(d)(3) of the Social Security Act, the Secretary of Health and Human 
Services shall transmit the evaluations to the Secretary of Labor who 
shall--
            (1) study the evaluations;
            (2) within 12 months after receipt of the evaluations, 
        submit to the Committee on Ways and Means of the House of 
        Representatives and the Committee on Finance of the Senate a 
        consolidated report on the activities evaluated; and
            (3)(A) if the evaluations are sufficient to permit the 
        Secretary to make recommendations with respect to the 
        activities evaluated, include such recommendations in the 
        report required by paragraph (2) of this subsection; or
            (B) if the evaluations are inconclusive, authorize States 
        to provide services, under programs established under section 
        402(a)(19) and part F of title IV of such Act, on a voluntary 
        or mandatory basis, to noncustodial parents who are unemployed 
        and unable to meet their child support obligations, of greater 
        scope and for a greater duration than the services provided 
        under section 482(d)(3) of such Act, in accordance with 
        regulations prescribed by the Secretary of Labor.

                       CHAPTER 9--EFFECTIVE DATE

SEC. 42901. EFFECTIVE DATE.

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

           Subtitle C--Child Support Enforcement Improvements

SEC. 43001. NONLIABILITY FOR DEPOSITORY INSTITUTIONS PROVIDING 
              FINANCIAL RECORDS TO STATE CHILD SUPPORT ENFORCEMENT 
              AGENCIES IN CHILD SUPPORT CASES.

    (a) In General.--Notwithstanding any other provision of Federal or 
State law, a depository institution shall not be liable under any 
Federal or State law to any person for disclosing any financial record 
of an individual to a State child support enforcement agency attempting 
to establish, modify, or enforce a child support obligation of such 
individual.
    (b) Prohibition of Disclosure of Financial Record Obtained by State 
Child Support Enforcement Agency.--A State child support enforcement 
agency which obtains a financial record of an individual from a 
depository institution pursuant to subsection (a) may disclose such 
financial record only for the purpose of, and to the extent necessary 
in, establishing, modifying, or enforcing a child support obligation of 
such individual.
    (c) Civil Damages for Unauthorized Disclosure.--
            (1) Disclosure by state officer or employee.--If any 
        officer or employee of a State knowingly, or by reason of 
        negligence, discloses a financial record of an individual in 
        violation of subsection (b), such individual may bring a civil 
        action for damages against such State in a district court of 
        the United States.
            (2) No liability for good faith but erroneous 
        interpretation.--No liability shall arise under this subsection 
        with respect to any disclosure which results from a good faith, 
        but erroneous, interpretation of subsection (b).
            (3) Damages.--In any action brought under paragraph (1), 
        upon a finding of liability on the part of the defendant, the 
        defendant shall be liable to the plaintiff in an amount equal 
        to the sum of--
                    (A) the greater of--
                            (i) $1,000 for each act of unauthorized 
                        disclosure of a financial record with respect 
                        to which such defendant is found liable; or
                            (ii) the sum of--
                                    (I) the actual damages sustained by 
                                the plaintiff as a result of such 
                                unauthorized disclosure; plus
                                    (II) in the case of a willful 
                                disclosure or a disclosure which is the 
                                result of gross negligence, punitive 
                                damages; plus
                    (B) the costs of the action.
    (d) Definitions.--For purposes of this section:
            (1) The term ``depository institution'' means--
                    (A) a depository institution, as defined by section 
                3(c) of the Federal Deposit Insurance Act;
                    (B) an institution-affiliated party, as defined by 
                section 3(u) of such Act; and
                    (C) any Federal credit union or State credit union, 
                as defined by section 101 of the Federal Credit Union 
                Act, including an institution-affiliated party of such 
                a credit union, as defined by section 206(r) of such 
                Act.
            (2) The term ``financial record'' has the meaning given 
        such term by section 1101(2) of the Right to Financial Privacy 
        Act of 1978.
            (3) The term ``State child support enforcement agency'' 
        means a State agency which administers a State program for 
        establishing and enforcing child support obligations.

SEC. 43002. ACCESS TO AND USE OF CONSUMER REPORTS BY STATE CHILD 
              SUPPORT ENFORCEMENT AGENCIES IN CHILD SUPPORT CASES.

    (a) In General.--Section 604 of the Fair Credit Reporting Act (15 
U.S.C. 1681b) is amended by adding at the end the following:
    ``(4) To a State child support enforcement agency that is seeking 
to establish, modify, or enforce a child support obligation against the 
consumer, if--
            ``(A) the paternity of the consumer for the child to which 
        the obligation relates has been established or acknowledged by 
        the consumer in accordance with State laws under which the 
        obligation arises (if required by those laws); and
            ``(B) the State child support enforcement agency--
                    ``(i) before obtaining the consumer report, 
                provides written notice to the consumer that the State 
                agency intends to obtain a consumer report on the 
                consumer; and
                    ``(ii) certifies to the consumer reporting agency 
                that--
                            ``(I) the requirement in subparagraph (A) 
                        has been fulfilled (if applicable); and
                            ``(II) the notice required by clause (i) 
                        has been provided.''.
    (b) State Child Support Enforcement Agency Defined.--Section 603 of 
such Act (15 U.S.C. 1681a) is amended by adding at the end the 
following new subsection:
    ``(k) The term `State child support enforcement agency' means a 
State agency which administers a State program for establishing and 
enforcing child support obligations.''.

SEC. 43003. HEALTH CARE SUPPORT.

    (a) Inclusion in Child Support Orders.--
            (1) In general.--Section 466(a) of the Social Security Act 
        (42 U.S.C. 666(a)) is amended by inserting after paragraph (11) 
        the following:
            ``(12) Not later than the beginning of the 9th calendar 
        month that begins after the date the Secretary prescribes final 
        regulations as provided for in section 467(d)(2):
                    ``(A) Procedures which require any child support 
                order, issued or modified by a court or administrative 
                agency of the State on or after the effective date of 
                guidelines established by the State under section 
                467(d), to provide for coverage of the health care 
                costs of the child in accordance with such guidelines.
                    ``(B) Procedures which require the expedited 
                consideration and disposition of any allegation of 
                noncompliance with an obligation to cover the health 
                care costs of a child imposed under a child support 
                order issued or modified in the State.''.
            (2) State guidelines.--Section 467 of such Act (42 U.S.C. 
        667) is amended by adding at the end the following:
    ``(d)(1) Not later than the beginning of the 9th calendar month 
that begins after the date the Secretary prescribes final regulations 
in accordance with paragraph (2), each State, as a condition for having 
its State plan approved under this part, must establish guidelines for 
the coverage of the health care costs of children pursuant to child 
support orders issued or modified in the State, which guidelines shall 
create a streamlined process that meets the minimum standards 
established by the Secretary in such regulations.
    ``(2)(A) The Secretary shall promulgate regulations which set forth 
minimum standards that any set of guidelines established pursuant to 
paragraph (1) must meet in providing for the coverage of the health 
care costs of children pursuant to child support orders issued or 
modified in the State, including--
            ``(i) the contents of such an order with respect to the 
        coverage of such costs;
            ``(ii) the distribution of responsibility for such costs;
            ``(iii) to the extent that such costs are to be covered 
        through health insurance--
                    ``(I) the provision of such insurance;
                    ``(II) the payment of insurance claims; and
                    ``(III) the rights of the noncustodial parent and 
                the custodial parent to insurance information;
            ``(iv) the circumstances under which a provider of health 
        insurance may or may not deny coverage to a child who is the 
        subject of such an order;
            ``(v) penalties to be imposed on providers of health 
        insurance who fail to comply with the guidelines; and
            ``(vi) how changes in the circumstances of the noncustodial 
        parent and the custodial parent are to be taken into account 
        with respect to the coverage of such costs.
    ``(B) In developing such standards, the Secretary shall ensure 
that, in establishing guidelines pursuant to paragraph (1), the State 
considers the following matters in the following order of importance:
            ``(i) The best interests of the child.
            ``(ii) The financial and other circumstances of the parents 
        of the child.
            ``(iii) Cost-effectiveness.
    ``(3) The preceding subsections of this section shall apply in like 
manner to the guidelines established pursuant to this subsection.''.
            (3) Regulations.--
                    (A) Proposed regulations.--Within 9 months after 
                the date of the enactment of this subtitle, the 
                Secretary of Health and Human Services shall issue 
                proposed regulations to implement the amendments made 
                by this subsection.
                    (B) Final regulations.--Within 14 months after the 
                date of the enactment of this subtitle, the Secretary 
                of Health and Human Services shall issue final 
                regulations to implement the amendments made by this 
                subsection.
    (b) Inclusion in Incentive Payments Program of Dependent Health 
Insurance Provided Due to Successful Enforcement.--
            (1) In general.--Section 458(b) of the Social Security Act 
        (42 U.S.C. 658(b)) is amended by adding at the end the 
        following:
    ``(5)(A) For purposes of this section, the successful enforcement 
by the State of a provision of a support order requiring an absent 
parent to obtain health insurance for 1 or more children shall be 
considered the collection of support from the absent parent, without 
regard to the means by which such support is provided.
    ``(B) The amount of support collected in any case in which the 
State successfully enforces a provision of a support order requiring an 
absent parent to obtain health insurance for 1 or more children shall 
be the savings to the State from the provision of such health insurance 
to such children, as determined in accordance with a health insurance 
savings methodology adopted by the State in accordance with regulations 
prescribed by the Secretary.''.
            (2) Regulations.--Within 6 months after the date of the 
        enactment of this subtitle, the Secretary of Health and Human 
        Services shall prescribe such regulations as may be necessary 
        to implement the amendment made by paragraph (1).
            (3) Study; report.--
                    (A) Study.--The Secretary of Health and Human 
                Services shall conduct a study to determine the 
                incentives that should be provided to encourage States 
                to enforce obligations of noncustodial parents to pay 
                (and obtain medical insurance coverage with respect to) 
                the reasonable and necessary health and dental expenses 
                of the children to whom the noncustodial parents owe 
                such obligations.
                    (B) Report.--Not later than 12 months after the 
                date of the enactment of this subtitle, the Secretary 
                of Health and Human Services shall submit to the 
                Committee on Ways and Means of the House of 
                Representatives and the Committee on Finance of the 
                Senate the results of the study required by 
                subparagraph (A).

SEC. 43004. ANNUAL REPORTS ON STATE COMPLIANCE WITH TIME LIMITS WITHIN 
              WHICH STATE MUST PROVIDE CERTAIN CHILD SUPPORT 
              ASSISTANCE.

    Section 452(a)(10) of the Social Security Act (42 U.S.C. 
652(a)(10)) is amended--
            (1) in subparagraph (H), by striking ``and'';
            (2) in subparagraph (I), by striking the period and 
        inserting ``; and''; and
            (3) by inserting after subparagraph (I) the following:
                    ``(J) compliance, by State, with the standards 
                established pursuant to subsections (h) and (i).''.

SEC. 43005. WAGES WITHHELD BY EMPLOYERS TO PAY CHILD SUPPORT 
              OBLIGATIONS REQUIRED TO BE PAID TO STATE WITHIN 10 DAYS; 
              LATE PAYMENT PENALTY IMPOSED ON EMPLOYERS.

    (a) In General.--Section 466(b)(6)(A) of the Social Security Act 
(42 U.S.C. 666(b)(6)(A)) is amended--
            (1) in clause (i), by inserting ``within 10 days after the 
        payment of such wages'' before ``to the appropriate agency''; 
        and
            (2) by adding at the end the following:
            ``(iii) The State must require any employer who fails to 
        make any payment required in accordance with clause (i) within 
        the 10-day period described therein to pay the State a $1,000 
        penalty. The State must expend all penalties collected in 
        accordance with this clause for the operation of the State plan 
        approved under section 454, not later than the end of the 
        calendar quarter following the calendar quarter in which 
        collected.''.
    (b) Effective Date.--
            (1) In general.--Except as provided in paragraph (2) of 
        this subsection, the amendments made by subsection (a) of this 
        section shall take effect on the date of the enactment of this 
        subtitle and apply to wages paid on or after such date and 
        payments under part D of title IV of the Social Security Act 
        for calendar quarters beginning on or after such date.
            (2) Delay permitted if state legislation required.--In the 
        case of a State plan approved under section 454 of the Social 
        Security Act which the Secretary of Health and Human Services 
        determines requires State legislation (other than legislation 
        appropriating funds) in order for the plan to meet the 
        additional requirements imposed by the amendments made by 
        subsection (a) of this section, the State plan shall not be 
        regarded as failing to comply with the requirements of such 
        section 454 solely on the basis of the failure of the plan to 
        meet such additional requirements before the 1st day of the 1st 
        calendar quarter beginning after the close of the 1st regular 
        session of the State legislature that begins after the date of 
        the enactment of this subtitle. For purposes of the previous 
        sentence, in the case of a State that has a 2-year legislative 
        session, each year of such session shall be deemed to be a 
        separate regular session of the State legislature.

SEC. 43006. NATIONAL PARENT LOCATOR NETWORK.

    Section 453 of the Social Security Act (42 U.S.C. 653) is amended 
by adding at the end the following:
    ``(g) The Secretary shall expand the Parent Locator Service to 
establish a national network based on the comprehensive statewide child 
support enforcement systems developed by the States, to--
            ``(1) allow each State to--
                    ``(A) locate any absent parent who owes child 
                support, for whom a child support 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 
                        directly from one computer system to another; 
                        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 involving 
                the same absent parent, and obtain the details of any 
                such order;
                    ``(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 
                (for such reasons as 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 48-hour turnaround time for 
        information to be broadcast and returned to a requesting State; 
        and
            ``(3) provide ready access to courts of the information on 
        the network by location of a computer terminal in each 
        court.''.

                  Subtitle D--Single Parent Protection

SEC. 44001. TREATMENT OF UNPAID CHILD SUPPORT.

    (a) In General.--Subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to refundable credits) 
is amended by redesignating section 35 as section 36 and by inserting 
after section 34 the following new section:

``SEC. 35. UNPAID CHILD SUPPORT.

    ``(a) Allowance of Credit.--In the case of an eligible individual, 
there shall be allowed as a credit against the tax imposed by this 
subtitle for the taxable year an amount equal to the unpaid child 
support of such individual for such year.
    ``(b) Definitions.--For purposes of this section--
            ``(1) Eligible individual.--The term `eligible individual' 
        means any individual--
                    ``(A) who is entitled to receive child support 
                payments during the taxable year, and
                    ``(B) who, as of the close of such taxable year, 
                has not received all of the child support payments to 
                which such individual is entitled for such year.
            ``(2) Unpaid child support.--The term `unpaid child 
        support' means, with respect to an individual for any taxable 
        year, the excess of--
                    ``(A) the aggregate child support payments such 
                individual is entitled to receive during such year, 
                over
                    ``(B) the child support payments such individual 
                received during such year.
            ``(3) Child support payment.--
                    ``(A) In general.--The term `child support payment' 
                means, with respect to any taxable year--
                            ``(i) any periodic payment of a fixed 
                        amount, or
                            ``(ii) any payment of a medical or 
                        educational expense, insurance premium, or 
                        other similar item,
                which is required to be paid to the taxpayer during 
                such taxable year by an individual under a support 
                instrument for the support of any child of such 
                individual.
                    ``(B) Coordination with afdc.--The term `child 
                support payment' shall not include any payment the 
                right to which has been assigned to a State under 
                section 402(a)(26) of the Social Security Act.
    ``(c) Taxpayer Required To Identify Individual Required To Pay 
Support.--No credit shall be allowed under this section for a taxable 
year unless the taxpayer includes on the return for such year the name 
and TIN on each individual required to make support payments to the 
taxpayer during such taxable year.
    ``(d) Increase in Tax of Individual Failing To Make Required 
Support Payments.--
            ``(1) In general.--If credit is allowed under this section 
        for any taxable year with respect to unpaid support payments, 
        the tax imposed by this chapter of the individual failing to 
        make such payment (for such individual's taxable year which 
        begins in the calendar year in which the taxable year of the 
        taxpayer begins) shall be increased by the amount of such 
        credit.
            ``(2) No credits against tax, etc.--Any increase in tax 
        under this subsection shall not be treated as a tax imposed by 
        this chapter for purposes of determining--
                    ``(A) the amount of any other credit under this 
                part, or
                    ``(B) the minimum tax under section 55.''
    (b) Conforming Amendments.--
            (1) Paragraph (2) of section 1324(b) of title 31, United 
        States Code, is amended by inserting before the period ``or 
        from section 35 of such Code''.
            (2) The table of sections for subpart C of part IV of 
        subchapter A of chapter 1 is amended by striking the item 
        relating to section 35 and inserting the following new items:

                              ``Sec. 35. Unpaid child support.
                              ``Sec. 36. Overpayments of tax.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1996.

                   Subtitle E--Women's Pension Equity

SEC. 45001. MODEL SPOUSAL CONSENT FORM AND QUALIFIED DOMESTIC RELATIONS 
              ORDER.

    (a) Model Spousal Consent Form.--
            (1) Amendment to internal revenue code.--Section 417(a) of 
        the Internal Revenue Code of 1986 is amended by adding at the 
        end the following new paragraph:
            ``(7) Consent form.--The Secretary shall develop a form not 
        later than January 1, 1997, for the spousal consent required 
        under paragraph (2) which--
                    ``(A) is written in a manner calculated to be 
                understood by the average person, and
                    ``(B) discloses in plain form whether--
                            ``(i) the waiver is irrevocable, and
                            ``(ii) the waiver may be revoked by a 
                        qualified domestic relations order.''.
            (2) Amendment to erisa.--Section 205(c) of the Employee 
        Retirement Income Security Act of 1974 (29 U.S.C. 1055(c)) is 
        amended by adding at the end the following new paragraph:
            ``(8) The Secretary of the Treasury shall develop a form 
        not later than January 1, 1997, for the spousal consent 
        required under paragraph (2) which--
                    ``(A) is written in a manner calculated to be 
                understood by the average person, and
                    ``(B) discloses in plain form whether--
                            ``(i) the waiver is irrevocable, and
                            ``(ii) the waiver may be revoked by a 
                        qualified domestic relations order.''.
    (b) Model Qualified Domestic Relations Order.--
            (1) Amendment to erisa.--Section 206(d)(3) of the Employee 
        Retirement Income Security Act of 1974 (29 U.S.C. 1056(d)(3)) 
        is amended by adding at the end the following new subparagraph:
    ``(O) The Secretary shall develop a form not later than January 1, 
1997, for a qualified domestic relations order--
            ``(i) which meets all the requirements of subparagraph 
        (B)(i), and
            ``(ii) the provisions of which focus attention on the need 
        to consider the treatment of any lump sum payment, qualified 
        joint and survivor annuity, or qualified preretirement survivor 
        annuity.''.
            (2) Amendment to internal revenue code.--Section 414(p) of 
        the Internal Revenue Code of 1986 is amended by adding at the 
        end the following new paragraph:
            ``(13) The Secretary of Labor shall develop a form not 
        later than January 1, 1997, for a qualified domestic relations 
        order which--
                    ``(A) which meets all the requirements of paragraph 
                (1)(A), and
                    ``(B) the provisions of which focus attention on 
                the need to consider the treatment of any lump sum 
                payment, qualified joint and survivor annuity, or 
                qualified preretirement survivor annuity.''.
    (c) Publicity.--The Secretary of the Treasury and the Secretary of 
Labor shall include publicity for the model forms required by the 
amendments made by this section in the pension outreach efforts 
undertaken by each Secretary.

SEC. 45002. EXTENSION OF TIER II RAILROAD RETIREMENT BENEFITS TO 
              SURVIVING FORMER SPOUSES PURSUANT TO DIVORCE AGREEMENTS.

    (a) In General.--Section 5 of the Railroad Retirement Act of 1974 
(45 U.S.C. 231d) is amended by adding at the end the following new 
subsection:
    ``(d) Notwithstanding any other provision of law, the payment of 
any portion of an annuity computed under section 3(b) to a surviving 
former spouse in accordance with a court decree of divorce, annulment, 
or legal separation or the terms of any court-approved property 
settlement incident to any such court decree shall not be terminated 
upon the death of the individual who performed the service with respect 
to which such annuity is so computed unless such termination is 
otherwise required by the terms of such court decree.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect on the date of the enactment of this subtitle.

SEC. 45003. SURVIVOR ANNUITIES FOR WIDOWS, WIDOWERS, AND FORMER SPOUSES 
              OF FEDERAL EMPLOYEES WHO DIE BEFORE ATTAINING AGE FOR 
              DEFERRED ANNUITY UNDER CIVIL SERVICE RETIREMENT SYSTEM.

    (a) Benefits for Widow or Widower.--Section 8341(f) of title 5, 
United States Code, is amended--
            (1) in the matter preceding paragraph (1) by--
                    (A) by inserting ``a former employee separated from 
                the service with title to deferred annuity from the 
                Fund dies before having established a valid claim for 
                annuity and is survived by a spouse, or if'' before ``a 
                Member''; and
                    (B) by inserting ``of such former employee or 
                Member'' after ``the surviving spouse'';
            (2) in paragraph (1)--
                    (A) by inserting ``former employee or'' before 
                ``Member commencing''; and
                    (B) by inserting ``former employee or'' before 
                ``Member dies''; and
            (3) in the undesignated sentence following paragraph (2)--
                    (A) in the matter preceding subparagraph (A) by 
                inserting ``former employee or'' before ``Member''; and
                    (B) in subparagraph (B) by inserting ``former 
                employee or'' before ``Member''.
    (b) Benefits for Former Spouse.--Section 8341(h) of title 5, United 
States Code, is amended--
            (1) in paragraph (1) by adding after the first sentence 
        ``Subject to paragraphs (2) through (5) of this subsection, a 
        former spouse of a former employee who dies after having 
        separated from the service with title to a deferred annuity 
        under section 8338(a) but before having established a valid 
        claim for annuity is entitled to a survivor annuity under this 
        subsection, if and to the extent expressly provided for in an 
        election under section 8339(j)(3) of this title, or in the 
        terms of any decree of divorce or annulment or any court order 
        or court-approved property settlement agreement incident to 
        such decree.''; and
            (2) in paragraph (2)--
                    (A) in subparagraph (A)(ii) by striking ``or 
                annuitant,'' and inserting ``annuitant, or former 
                employee''; and
                    (B) in subparagraph (B)(iii) by inserting ``former 
                employee or'' before ``Member''.
    (c) Protection of Survivor Benefit Rights.--Section 8339(j)(3) of 
title 5, United States Code, is amended by inserting at the end the 
following:
    ``The Office shall provide by regulation for the application of 
this subsection to the widow, widower, or surviving former spouse of a 
former employee who dies after having separated from the service with 
title to a deferred annuity under section 8338(a) but before having 
established a valid claim for annuity.''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this subtitle and shall apply 
only in the case of a former employee who dies on or after such date.

SEC. 45004. COURT ORDERS RELATING TO FEDERAL RETIREMENT BENEFITS FOR 
              FORMER SPOUSES OF FEDERAL EMPLOYEES.

    (a) Civil Service Retirement System.--
            (1) In general.--Section 8345(j) of title 5, United States 
        Code, is amended--
                    (A) by redesignating paragraph (3) as paragraph 
                (4); and
                    (B) by inserting after paragraph (2) the following 
                new paragraph:
    ``(3) Payment to a person under a court decree, court order, 
property settlement, or similar process referred to under paragraph (1) 
shall include payment to a former spouse of the employee, Member, or 
annuitant.''.
            (2) Lump-sum benefits.--Section 8342 of title 5, United 
        States Code, is amended--
                    (A) in subsection (c) by striking ``Lump-sum 
                benefits'' and inserting ``Subject to subsection (j), 
                lump-sum benefits''; and
                    (B) in subsection (j)(1) by striking ``the lump-sum 
                credit under subsection (a) of this section'' and 
                inserting ``any lump-sum credit or lump-sum benefit 
                under this section''.
    (b) Federal Employees Retirement System.--Section 8467 of title 5, 
United States Code, is amended--
            (1) by redesignating subsection (c) as subsection (d); and
            (2) by inserting after subsection (b) the following new 
        subsection:
    ``(c) Payment to a person under a court decree, court order, 
property settlement, or similar process referred to under subsection 
(a) shall include payment to a former spouse of the employee, Member, 
or annuitant.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this subtitle.

SEC. 45005. PREVENTION OF CIRCUMVENTION OF COURT ORDER BY WAIVER OF 
              RETIRED PAY TO ENHANCE CIVIL SERVICE RETIREMENT ANNUITY.

    (a) Civil Service Retirement and Disability System.--(1) Subsection 
(c) of section 8332 of title 5, United States Code, is amended by 
adding at the end the following:
    ``(4) If an employee or Member waives retired pay that is subject 
to a court order for which there has been effective service on the 
Secretary concerned for purposes of section 1408 of title 10, the 
military service on which the retired pay is based may be credited as 
service for purposes of this subchapter only if, in accordance with 
regulations prescribed by the Director of the Office of Personnel 
Management, the employee or Member authorizes the Director to deduct 
and withhold from the annuity payable to the employee or Member under 
this subchapter, and to pay to the former spouse covered by the court 
order, the same amount that would have been deducted and withheld from 
the employee's or Member's retired pay and paid to that former spouse 
under such section 1408.''.
    (2) Paragraph (1) of such subsection is amended by striking out 
``Except as provided in paragraph (2)'' and inserting ``Except as 
provided in paragraphs (2) and (4)''.
    (b) Federal Employees' Retirement System.--(1) Subsection (c) of 
section 8411 of title 5, United States Code, is amended by adding at 
the end the following:
    ``(5) If an employee or Member waives retired pay that is subject 
to a court order for which there has been effective service on the 
Secretary concerned for purposes of section 1408 of title 10, the 
military service on which the retired pay is based may be credited as 
service for purposes of this chapter only if, in accordance with 
regulations prescribed by the Director of the Office of Personnel 
Management, the employee or Member authorizes the Director to deduct 
and withhold from the annuity payable to the employee or Member under 
this subchapter, and to pay to the former spouse covered by the court 
order, the same amount that would have been deducted and withheld from 
the employee's or Member's retired pay and paid to that former spouse 
under such section 1408.''.
    (2) Paragraph (1) of such subsection is amended by striking out 
``Except as provided in paragraph (2) or (3)'' and inserting ``Except 
as provided in paragraphs (2), (3), and (5)''.
    (c) Effective Date.--The amendment made by subsection (a) shall 
take effect on January 1, 1997.

                       Subtitle F--Pension Reform

SEC. 46001. PENSION INTEGRATION RULES.

    (a) Applicability of New Integration Rules Extended to All Existing 
Accrued Benefits.--Notwithstanding subsection (c)(1) of section 1111 of 
the Tax Reform Act of 1986 (relating to effective date of application 
of nondiscrimination rules to integrated plans) (100 Stat. 2440), 
effective for plan years beginning after the date of the enactment of 
this subtitle, the amendments made by subsection (a) of such section 
1111 shall also apply to benefits attributable to plan years beginning 
on or before December 31, 1988.
    (b) Integration Disallowed for Simplified Employee Pensions.--
            (1) In general.--Subparagraph (D) of section 408(k)(3) of 
        the Internal Revenue Code of 1986 (relating to permitted 
        disparity under rules limiting discrimination under simplified 
        employee pensions) is repealed.
            (2) Conforming amendment.--Subparagraph (C) of such section 
        408(k)(3) is amended by striking ``and except as provided in 
        subparagraph (D),''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply with respect to taxable years beginning on or after 
        January 1, 1996.
    (c) Eventual Repeal of Integration Rules.--Effective for plan years 
beginning on or after January 1, 2003--
            (1) subparagraphs (C) and (D) of section 401(a)(5) of the 
        Internal Revenue Code of 1986 (relating to pension integration 
        exceptions under nondiscrimination requirements for 
        qualification) are repealed, and subparagraph (E) of such 
        section 401(a)(5) is redesignated as subparagraph (C); and
            (2) subsection (l) of section 401 of such Code (relating to 
        nondiscriminatory coordination of defined contribution plans 
        with OASDI) is repealed.

SEC. 46002. APPLICATION OF MINIMUM COVERAGE REQUIREMENTS WITH RESPECT 
              TO SEPARATE LINES OF BUSINESS.

    (a) In General.--Subsection (b) of section 410 of the Internal 
Revenue Code of 1986 (relating to minimum coverage requirements) is 
amended--
            (1) in paragraph (1), by striking ``A trust'' and inserting 
        ``In any case in which the employer with respect to a plan is 
        treated, under section 414(r), as operating separate lines of 
        business for a plan year, a trust'', and by inserting ``for 
        such plan year'' after ``requirements''; and
            (2) by redesignating paragraphs (3) through (6) as 
        paragraphs (4) through (7), respectively and by inserting after 
        paragraph (2) the following new paragraph:
            ``(3) Special rule where employer operates single line of 
        business.--In any case in which the employer with respect to a 
        plan is not treated, under section 414(r), as operating 
        separate lines of business for a plan year, a trust shall not 
        constitute a qualified trust under section 401(a) unless such 
        trust is designated by the employer as part of a plan which 
        benefits all employees of the employer.''.
    (b) Limitation on Line of Business Exception.--Paragraph (6) of 
section 410(b) of such Code (as redesignated by subsection (a)(2) of 
this section) is amended by inserting ``other than paragraph (1)(A)'' 
after ``this subsection''.

SEC. 46003. ELIMINATION OF SPECIAL VESTING RULE FOR MULTIEMPLOYER 
              PLANS.

    (a) Internal Revenue Code Amendment.--Paragraph (2) of section 
411(a) of the Internal Revenue Code of 1986 (relating to minimum 
vesting standards) is amended--
            (1) by striking ``subparagraph (A), (B), or (C)'' and 
        inserting ``subparagraph (A) or (B)''; and
            (2) by striking subparagraph (C).
    (b) ERISA Amendment.--Paragraph (2) of section 203(a)(2) of the 
Employee Retirement Income Security Act of 1974 (29 U.S.C. 1053(a)(2)) 
is amended--
            (1) by striking ``subparagraph (A), (B), or (C)'' and 
        inserting ``subparagraph (A) or (B)''; and
            (2) by striking subparagraph (C).

SEC. 46004. DIVISION OF PENSION BENEFITS UPON DIVORCE.

    (a) Amendments to the Internal Revenue Code of 1986.--
            (1) In general.--Subsection (a) of section 401 of the 
        Internal Revenue Code of 1986 (relating to requirements for 
        qualification) is amended--
                    (A) by inserting after paragraph (31) the following 
                new paragraph:
            ``(32) Division of pension benefits upon divorce.--
                    ``(A) In general.--In the case of a divorce of a 
                participant in a pension plan from a spouse who is, 
                immediately before the divorce, a beneficiary under the 
plan, a trust forming a part of such plan shall not constitute a 
qualified trust under this section unless the plan provides that at 
least 50 percent of the marital share of the accrued benefit of the 
participant under the plan ceases to be an accrued benefit of such 
participant and becomes an accrued benefit of such divorced spouse, 
determined and payable upon the earlier of the retirement of the 
participant, the participant's death, or the termination of the plan, 
except to the extent that a qualified domestic relations order in 
connection with such divorce provides otherwise.
                    ``(B) Limitation.--Subparagraph (A) shall not be 
                construed--
                            ``(i) to require a plan to provide any type 
                        or form of benefit, or any option, not 
                        otherwise provided under the plan,
                            ``(ii) to require the plan to provide 
                        increased benefits (determined on the basis of 
                        actuarial value),
                            ``(iii) to require the payment of benefits 
                        to the divorced spouse which are required to be 
                        paid to another individual in accordance with 
                        this paragraph or pursuant to a domestic 
                        relations order previously determined to be a 
                        qualified domestic relations order, or
                            ``(iv) to require payment of benefits to 
                        the divorced spouse in the form of a qualified 
                        joint and survivor annuity to the divorced 
                        spouse and his or her subsequent spouse.
                    ``(C) Definitions.--For purposes of this 
                paragraph--
                            ``(i) Domestic relations order; qualified 
                        domestic relations order.--The terms `domestic 
                        relations order' and `qualified domestic 
                        relations order' shall have the meanings 
                        provided in section 414(p).
                            ``(ii) Marital share.--The term `marital 
                        share' means, in connection with an accrued 
                        benefit under a pension plan, the product 
                        derived by multiplying--
                                    ``(I) the actuarial present value 
                                of the accrued benefit, by
                                    ``(II) a fraction, the numerator of 
                                which is the period of time, during the 
                                marriage between the spouse and the 
                                participant in the plan, which 
                                constitutes creditable service by the 
                                participant under the plan, and the 
                                denominator of which is the total 
                                period of time which constitutes 
                                creditable service by the participant 
                                under the plan.
                            ``(iii) Qualified joint and survivor 
                        annuity.--The term `qualified joint and 
                        survivor annuity' has the meaning provided in 
                        section 417(b).
                    ``(D) Regulations.--In prescribing regulations 
                under this paragraph, the Secretary shall consult with 
                the Secretary of Labor.''; and
                    (B) in the last sentence, by striking ``and (20)'' 
                and inserting ``(20), and (32)''.
            (2) Conforming amendments.--
                    (A) Subparagraph (B) of section 401(a)(13) of such 
                Code (relating to special rules for domestic relations 
                orders) is amended by inserting ``or if such creation, 
                assignment, or recognition pursuant to such order is 
                necessary for compliance with the requirements of 
                paragraph (32)'' before the period.
                    (B) Subsection (p) of section 414 of such Code 
                (defining qualified domestic relations orders) is 
                amended--
                            (i) in paragraph (3)(C), by inserting ``or 
                        to a divorced spouse of the participant in 
                        connection with a previously occurring divorce 
                        as required under section 401(a)(32)'' before 
                        the period; and
                            (ii) in paragraph (7)(C), by striking ``if 
                        there had been no order'' and inserting ``in 
                        accordance with section 401(a)(32) as if there 
                        had been no qualified domestic relations 
                        order''.
    (b) Amendments to the Employee Retirement Income Security Act of 
1974.--
            (1) In general.--Section 206 of Employee Retirement Income 
        Security Act of 1974 (29 U.S.C. 1056) is amended by adding at 
        the end the following new subsection:
    ``(e)(1) In the case of a divorce of a participant in a pension 
plan from a spouse who is, immediately before the divorce, a 
beneficiary under the plan, the plan shall provide that at least 50 
percent of the marital share of the accrued benefit of the participant 
under the plan ceases to be an accrued benefit of such participant and 
becomes an accrued benefit of such divorced spouse, determined and 
payable upon the earlier of the retirement of the participant, the 
participant's death, or the termination of the plan, except to the 
extent that a qualified domestic relations order in connection with 
such divorce provides otherwise.
    ``(2) Paragraph (1) shall not be construed--
            ``(A) to require a plan to provide any type or form of 
        benefit, or any option, not otherwise provided under the plan,
            ``(B) to require the plan to provide increased benefits 
        (determined on the basis of actuarial value),
            ``(C) to require the payment of benefits to the divorced 
        spouse which are required to be paid to another individual in 
        accordance with this subsection or pursuant to a domestic 
        relation order previously determined to be a qualified domestic 
        relations order, or
            ``(D) to require payment of benefits to the divorced spouse 
        in the form of a joint and survivor annuity to the divorced 
        spouse and his or her subsequent spouse.
    ``(3) For purposes of this subsection--
            ``(A) The terms `domestic relations order' and `qualified 
        domestic relations order' shall have the meanings provided in 
        subsection (d)(3)(B).
            ``(B) The term `marital share' means, in connection with an 
        accrued benefit under a pension plan, the product derived by 
        multiplying--
                    ``(i) the actuarial present value of the accrued 
                benefit, by
                    ``(ii) a fraction--
                            ``(I) the numerator of which is the period 
                        of time, during the marriage between the spouse 
                        and the participant in the plan, which 
                        constitutes creditable service by the 
                        participant under the plan, and
                            ``(II) the denominator of which is the 
                        total period of time which constitutes 
                        creditable service by the participant under the 
                        plan.
            ``(C) The term `qualified joint and survivor annuity' shall 
        have the meaning provided in section 205(d).
    ``(4) In prescribing regulations under this subsection, the 
Secretary shall consult with the Secretary of the Treasury.''.
            (2) Conforming amendments.--Section 206(d) of such Act (29 
        U.S.C. 1056(d)) is amended--
                    (A) in the first sentence of paragraph (3)(A), by 
                inserting ``or if such creation, assignment, or 
                recognition pursuant to such order is necessary for 
                compliance with the requirements of subsection (e)'' 
                before the period;
                    (B) in paragraph (3)(D)(iii), by inserting ``or to 
                a divorced spouse of the participant in connection with 
                a previously occurring divorce as required under 
                subsection (e)'' before the period; and
                    (C) in paragraph (3)(H)(iii), by striking ``if 
                there had been no order'' and inserting ``in accordance 
                with subsection (e) as if there had been no qualified 
                domestic relations order''.

SEC. 46005. EFFECTIVE DATES.

    (a) In General.--Except as provided in subsection (b), the 
amendments made by this subtitle, other than section 46001, shall apply 
with respect to plan years beginning on or after January 1, 1996, and 
the amendments made by section 46004 shall apply only with respect to 
divorces becoming final in such plan years.
    (b) Special Rule for Collectively Bargained Plans.--In the case of 
a plan maintained pursuant to 1 or more collective bargaining 
agreements between employee representatives and 1 or more employers 
ratified on or before the date of the enactment of this subtitle, 
subsection (a) shall be applied to benefits pursuant to, and 
individuals covered by, any such agreement by substituting for 
``January 1, 1996'' the date of the commencement of the first plan year 
beginning on or after the earlier of--
            (1) the later of--
                    (A) January 1, 1996, or
                    (B) the date on which the last of such collective 
                bargaining agreements terminates (determined without 
                regard to any extension thereof after the date of the 
                enactment of this subtitle), or
            (2) January 1, 1999.
    (c) Plan Amendments.--If any amendment made by this subtitle 
requires an amendment to any plan, such plan amendment shall not be 
required to be made before the first plan year beginning on or after 
January 1, 1996, if--
            (1) during the period after such amendment made by this 
        subtitle takes effect and before such first plan year, the plan 
        is operated in accordance with the requirements of such 
        amendment made by this subtitle, and
            (2) such plan amendment applies retroactively to the period 
        after such amendment made by this subtitle takes effect and 
        such first plan year.
A plan shall not be treated as failing to provide definitely 
determinable benefits or contributions, or to be operated in accordance 
with the provisions of the plan, merely because it operates in 
accordance with this subsection.

SEC. 46006. CLARIFICATION OF CONTINUED AVAILABILITY OF REMEDIES 
              RELATING TO MATTERS TREATED IN DOMESTIC RELATIONS ORDERS 
              ENTERED BEFORE 1985.

    (a) In General.--In any case in which--
            (1) under a prior domestic relations order entered before 
        January 1, 1985, in an action for divorce--
                    (A) the right of a spouse under a pension plan to 
                an accrued benefit under such plan was not divided 
                between spouses,
                    (B) any right of a spouse with respect to such an 
                accrued benefit was waived without the informed consent 
                of such spouse, or
                    (C) the right of a spouse as a participant under a 
                pension plan to an accrued benefit under such plan was 
                divided so that the other spouse received less than 
                such other spouse's pro rata share of the accrued 
                benefit under the plan, or
            (2) a court of competent jurisdiction determines that any 
        further action is appropriate with respect to any matter to 
        which a prior domestic relations order entered before such date 
        applies,
nothing in the provisions of section 104, 204, or 303 of the Retirement 
Equity Act of 1984 (Public Law 98-397) or the amendments made thereby 
shall be construed to require or permit the treatment, for purposes of 
such provisions, of a domestic relations order, which is entered on or 
after the date of the enactment of this subtitle and which supercedes, 
amends the terms of, or otherwise affects such prior domestic relations 
order, as other than a qualified domestic relations order solely 
because such prior domestic relations order was entered before January 
1, 1985.
    (b) Definitions.--For purposes of this section--
            (1) In general.--Terms used in this section which are 
        defined in section 3 of the Employee Retirement Income Security 
        Act of 1974 (29 U.S.C. 1002) shall have the meanings provided 
        such terms by such section.
            (2) Pro rata share.--The term ``pro rata share'' of a 
        spouse means, in connection with an accrued benefit under a 
        pension plan, 50 percent of the product derived by 
        multiplying--
                    (A) the actuarial present value of the accrued 
                benefit, by
                    (B) a fraction--
                            (i) the numerator of which is the period of 
                        time, during the marriage between the spouse 
                        and the participant in the plan, which 
                        constitutes creditable service by the 
                        participant under the plan, and
                            (ii) the denominator of which is the total 
                        period of time which constitutes creditable 
                        service by the participant under the plan.
            (3) Plan.--All pension plans in which a person has been a 
        participant shall be treated as one plan with respect to such 
        person.

SEC. 46007. ENTITLEMENT OF DIVORCED SPOUSES TO RAILROAD RETIREMENT 
              ANNUITIES INDEPENDENT OF ACTUAL ENTITLEMENT OF EMPLOYEE.

    Section 2 of the Railroad Retirement Act of 1974 (45 U.S.C. 231a) 
is amended--
            (1) in subsection (c)(4)(i), by striking ``(A) is entitled 
        to an annuity under subsection (a)(1) and (B)''; and
            (2) in subsection (e)(5), by striking ``or divorced wife'' 
        the second place it appears.

                 Subtitle G--Social Security Caregiver

SEC. 47001. INCREASE IN NUMBER OF YEARS DISREGARDED.

    (a) In General.--Section 215(b)(2) of the Social Security Act (42 
U.S.C. 415(b)(2)) is amended--
            (1) by striking the period at the end of clause (ii) of 
        subparagraph (A) and inserting a comma;
            (2) by striking ``Clause (ii), once'' after and below 
        clause (ii) of subparagraph (A) and inserting the following:
``and reduced further to the extent provided in subparagraph (B). 
Clause (ii), once'';
            (3) by striking ``If an individual'' in the matter 
        following clause (ii) of subparagraph (A) and all that follows 
        through the end of subparagraph (A);
            (4) by redesignating subparagraph (B) as subparagraph (F); 
        and
            (5) by inserting after subparagraph (A) the following new 
        subparagraphs:
    ``(B) Subject to subparagraph (C), in any case in which--
            ``(i) in any calendar year which is included in an 
        individual's computation base years--
                    ``(I) such individual is living with a child (of 
                such individual or his or her spouse) under the age of 
                12, or
                    ``(II) such individual is living with a child (of 
                such individual or his or her spouse), a parent (of 
                such individual or his or her spouse), or such 
                individual's spouse while such child, parent, or spouse 
                is a chronically dependent individual,
            ``(ii) such calendar year is not disregarded pursuant to 
        subparagraphs (A) and (E) (in determining such individual's 
        benefit computation years) by reason of the reduction in the 
        number of such individual's elapsed years under subparagraph 
        (A), and
            ``(iii) at any time during or after such calendar year and 
        on or before the date of the application by such individual for 
        benefits based on such individual's wages and self-employment 
        income, such individual submits to the Commissioner of Social 
        Security, in such form as the Commissioner shall prescribe by 
        regulations, a written statement that the requirements of 
        clause (i) are met with respect to such calendar year,
then the number by which such elapsed years are reduced under this 
paragraph pursuant to subparagraph (A) shall be increased by one (up to 
a combined total not exceeding 5) for each such calendar year.
    ``(C)(i)(I) No calendar year shall be disregarded by reason of 
subparagraph (B) (in determining such individual's benefit computation 
years) unless the individual had less than the applicable dollar amount 
(in effect for such calendar year under this clause) of earnings as 
described in section 203(f)(5) for such year.
    ``(II) Except as otherwise provided in subclause (III), the 
applicable dollar amount in effect under this clause for any calendar 
year is $2,000.
    ``(III) In each calendar year after 1996, the Commissioner of 
Social Security shall determine and publish in the Federal Register, on 
or before November 1 of such calendar year, the applicable dollar 
amount which shall be effective under this clause for the next calendar 
year. Such dollar amount shall be equal to the larger of the applicable 
dollar amount which is effective under this clause for the calendar 
year in which such determination is made or, subject to subclause 
(VII), the product described in subclause (IV).
    ``(IV) The product described in this subclause is the product 
derived by multiplying the applicable dollar amount which is effective 
under this clause for the calendar year in which the determination 
under subclause (III) is made, by the ratio of the amount described in 
subclause (V) to the amount described in subclause (VI).
    ``(V) The amount described in this subclause is the national 
average wage index (as defined in section 209(k)(1)) for the calendar 
year before the calendar year in which the determination under 
subclause (III) is made.
    ``(VI) The amount described in this subclause is the national 
average wage index (as defined in section 209(k)(1)) for 1995 or, if 
later, the calendar year before the most recent calendar year in which 
a determination resulting in an increase in the applicable dollar 
amount was made under subclause (III).
    ``(VII) If the product described in subclause (IV) is not a 
multiple of $1.00, such product shall be rounded to the next higher 
multiple of $1.00 in any case in which such product is a multiple of 
$0.50 but not of $1.00, and to the nearest multiple of $1.00 in any 
other case.
    ``(ii) No calendar year shall be disregarded by reason of 
subparagraph (B) (in determining such individual's benefit computation 
years) in connection with a child referred to in subparagraph (B)(i)(I) 
(and not referred to in subparagraph (B)(i)(II)) unless the individual 
was living with the child substantially throughout the period in such 
year in which the child was alive and under the age of 12 in such year.
    ``(iii) No calendar year shall be disregarded by reason of 
subparagraph (B) (in determining such individual's benefit computation 
years) in connection with a child, parent, or spouse referred to in 
subparagraph (B)(i)(II) unless the individual was living with such 
child, parent, or spouse substantially throughout a period of 180 
consecutive days in such year throughout which such child, parent, or 
spouse was a chronically dependent individual.
    ``(iv) The particular calendar years to be disregarded under this 
subparagraph (in determining such benefit computation years) shall be 
those years (not otherwise disregarded under subparagraph (A)) which, 
before the application of subsection (f), meet the conditions of the 
preceding provisions of this subparagraph.
    ``(v) This subparagraph shall apply only to the extent that its 
application would not result in a lower primary insurance amount.
    ``(D)(i) For purposes of this paragraph, the term `chronically 
dependent individual' means an individual who--
            ``(I) is dependent on a daily basis on another person who 
        is living with the individual and is assisting the individual 
        without monetary compensation in the performance of at least 2 
        of the activities of daily living (described in clause (ii)), 
        and
            ``(II) without such assistance could not perform such 
        activities of daily living.
    ``(ii) The `activities of daily living', referred to in clause (i), 
are the following:
            ``(I) Eating.
            ``(II) Bathing.
            ``(III) Dressing.
            ``(IV) Toileting.
            ``(V) Transferring in and out of a bed or in and out of a 
        chair.
    ``(E) The number of an individual's benefit computation years as 
determined under this paragraph shall in no case be less than 2.''.

SEC. 47002. EFFECTIVE DATE AND RELATED PROVISIONS.

    (a) In General.--The amendments made by section 47001 shall apply 
only with respect to computation base years after 1985, and only with 
respect to benefits payable for months after December 1996.
    (b) Notice and Procedures.--
            (1) 60-day grace period after initial issuance of final 
        regulations for current beneficiaries and applicants.--The 
        requirements of clause (iii) of section 215(b)(2)(B) of the 
        Social Security Act (as amended by section 47001) shall be 
        treated as satisfied, in the case of a statement--
                    (A) which is filed by an individual who is, as of 
                the date of the first issuance in final form of the 
                regulations required under such clause, a recipient of 
                monthly benefits under section 202(a) or 223 of the 
                Social Security Act, or an applicant for such benefits, 
                and
                    (B) with respect to which the requirements of such 
                clause would be met but for the date of the filing of 
                such statement,
        if such statement is submitted to the Commissioner of Social 
        Security not later than 60 days after the date of the first 
        issuance in final form of such regulations.
            (2) Notice requirements.--
                    (A) Notice to current beneficiaries and 
                applicants.--The Commissioner of Social Security shall 
                issue, not later than the date of the first issuance in 
                final form of the regulations required under clause 
                (iii) of section 215(b)(2)(B) of the Social Security 
                Act (as amended by section 47001), regulations 
                establishing procedures to ensure that--
                            (i) persons who are, as of such date, 
                        recipients of monthly benefits under section 
                        202(a) or 223 of the Social Security Act, or 
                        applicants for such benefits, are fully 
                        informed of the amendments made by section 
                        47001; and
                            (ii) such persons are invited to comply, 
                        and given a reasonable opportunity to comply, 
                        with the requirements of section 
                        215(b)(2)(B)(iii) of the Social Security Act 
                        (as amended by section 47001), as provided in 
                        paragraph (1).
                Upon receiving from a recipient described in clauses 
                (i) and (ii) a written statement referred to in clause 
                (iii) of section 215(b)(2)(B) of the Social Security 
                Act (as amended by section 47001) with respect to which 
                the requirements of such clause are treated as 
                satisfied, the Commissioner shall redetermine the 
                amount of such benefits to the extent necessary to take 
                into account the amendments made by section 47001 (and 
                if such redetermination results in an increase in such 
                amount the increase shall be effective as provided in 
                subsection (a)).
                    (B) Notice to future applicants.--Such regulations 
                required under subparagraph (A) shall also provide 
                procedures to ensure that applicants for benefits under 
                section 202(a) or 223 of the Social Security Act are 
                given the opportunity, at the time of their 
                application, to indicate and verify any additional 
                years which may be disregarded under section 
                215(b)(2)(B) of the Social Security Act (as amended by 
                section 47001).

SEC. 47003. REPEAL OF 7-YEAR RESTRICTION ON ELIGIBILITY FOR WIDOW'S AND 
              WIDOWER'S INSURANCE BENEFITS BASED ON DISABILITY.

    (a) Widow's Insurance Benefits.--
            (1) In general.--Section 202(e) of the Social Security Act 
        (42 U.S.C. 402(e)) is amended--
                    (A) in paragraph (1)(B)(ii), by striking ``which 
                began before the end of the period specified in 
                paragraph (4)'';
                    (B) in paragraph (1)(F)(ii), by striking ``(I) in 
                the period specified in paragraph (4) and (II)'';
                    (C) by striking paragraph (4) and by redesignating 
                paragraphs (5) through (9) as paragraphs (4) through 
                (8), respectively; and
                    (D) in paragraph (4)(A)(ii) (as redesignated), by 
                striking ``whichever'' and all that follows through 
                ``begins'' and inserting ``the first day of the 
                seventeenth month before the month in which her 
                application is filed''.
            (2) Conforming amendments.--
                    (A) Section 202(e)(1)(F)(i) of such Act (42 U.S.C. 
                402(e)(1)(F)(i)) is amended by striking ``paragraph 
                (5)'' and inserting ``paragraph (4)''.
                    (B) Section 202(e)(1)(C)(ii)(III) of such Act (42 
                U.S.C. 402(e)(2)(C)(ii)(III)) is amended by striking 
                ``paragraph (8)'' and inserting ``paragraph (7)''.
                    (C) Section 202(e)(2)(A) of such Act (42 U.S.C. 
                402(e)(2)(A)) is amended by striking ``paragraph (7)'' 
                and inserting ``paragraph (6)''.
                    (D) Section 226(e)(1)(A)(i) of such Act (42 U.S.C. 
                426(e)(1)(A)(i)) is amended by striking ``202(e)(4)''.
    (b) Widower's Insurance Benefits.--
            (1) In general.--Section 202(f) of such Act (42 U.S.C. 
        402(f)) is amended--
                    (A) in paragraph (1)(B)(ii), by striking ``which 
                began before the end of the period specified in 
                paragraph (5)'';
                    (B) in paragraph (1)(F)(ii), by striking ``(I) in 
                the period specified in paragraph (5) and (II)'';
                    (C) by striking paragraph (5) and by redesignating 
                paragraphs (6) through (9) as paragraphs (5) through 
                (8), respectively; and
                    (D) in paragraph (5)(A)(ii) (as redesignated), by 
                striking ``whichever'' and all that follows through 
                ``begins'' and inserting ``the first day of the 
                seventeenth month before the month in which his 
                application is filed''.
            (2) Conforming amendments.--
                    (A) Section 202(f)(1)(F)(i) of such Act (42 U.S.C. 
                402(f)(1)(F)(i)) is amended by striking ``paragraph 
                (6)'' and inserting ``paragraph (5)''.
                    (B) Section 202(f)(1)(C)(ii)(III) of such Act (42 
                U.S.C. 402(f)(2)(C)(ii)(III)) is amended by striking 
                ``paragraph (8)'' and inserting ``paragraph (7)''.
                    (C) Section 226(e)(1)(A)(i) of such Act (as amended 
                by subsection (a)(2)) is further amended by striking 
                ``, 202(f)(1)(B)(ii), and 202(f)(5)'' and inserting 
                ``and 202(f)(1)(B)(ii)''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to benefits for months after December 1996 for which 
applications are filed or pending on or after January 1, 1997.

SEC. 47004. INCREASE IN WIDOW'S AND WIDOWER'S INSURANCE BENEFITS BY 
              REASON OF DELAYED RETIREMENT.

    (a) Delayed Retirement Credit for Widow's and Widower's Benefits.--
            (1) In general.--Section 202(w)(1) of the Social Security 
        Act (42 U.S.C. 402(w)(1)) is amended--
                    (A) in paragraph (1) by striking ``old-age 
                insurance benefit'' and inserting ``old-age, widow's, 
                or widower's insurance benefit'';
                    (B) in paragraph (2), by striking ``the number of 
                increment months for any individual'' in the matter 
                preceding subparagraph (A) and inserting ``the number 
                of increment months for any individual to whom an old-
                age, widow's, or widower's insurance benefit is payable 
                as described in paragraph (1)''; and
                    (C) by striking paragraph (2)(B) and inserting the 
                following:
                    ``(B) with respect to which--
                            ``(i) in the case of an individual to whom 
                        an old-age insurance benefit is payable, such 
                        individual was a fully insured individual (as 
                        defined in section 214(a)) and either was not 
                        entitled to such a benefit or suffered 
                        deductions under section 203(b) or 203(c) in 
                        amounts equal to the amount of such benefit, 
                        and
                            ``(ii) in the case of an individual to whom 
                        a widow's or widower's insurance benefit is 
                        payable, such individual satisfied 
                        subparagraphs (A), (B), and (D) of subsection 
                        (e)(1) or (f)(1) and either was not entitled to 
                        such a benefit or suffered deductions under 
                        section 203(b) or 203(c) in amounts equal to 
                        the amount of such benefit.''.
            (2) Conforming amendments to section 202(w).--
                    (A) Section 202(w)(3) of such Act (42 U.S.C. 
                402(w)(3)) is amended by striking ``old-age'' each 
                place it appears and inserting ``old-age, widow's, or 
                widower's''.
                    (B) Section 202(w)(5) of such Act (42 U.S.C. 
                402(w)(5)) is amended--
                            (i) by striking ``If an individual's 
                        primary insurance amount'' and inserting ``If 
                        the primary insurance amount on which an 
                        individual's old-age, widow's, or widower's 
                        insurance benefit is based'';
                            (ii) by striking ``old-age'' each place it 
                        appears and inserting ``old-age, widow's, or 
                        widower's''; and
                            (iii) by striking ``his primary insurance 
                        amount'' each place it appears and inserting 
                        ``the primary insurance amount''.
                    (C) Section 202(w)(6) of such Act (42 U.S.C. 
                402(w)(6)) is amended--
                            (i) by striking ``old-age'' each place it 
                        appears and inserting ``old-age, widow's, or 
                        widower's''; and
                            (ii) by adding at the end (after and below 
                        subparagraph (D)) the following new sentence:
``For purposes of this paragraph, an individual is deemed to become 
eligible for an old-age insurance benefit on the first day of the month 
in which such individual attains age 62, and for a widow's or widower's 
insurance benefit on the first day of the month in which such 
individual attains age 60.''.
            (3) Other conforming amendments.--
                    (A) Section 202(e)(2)(A) of such Act (42 U.S.C. 
                402(e)(2)(A)) is amended by inserting ``and subsection 
                (w)'' after ``subsection (q)''.
                    (B) Section 202(f)(3)(A) of such Act (42 U.S.C. 
                402(f)(3)(A)) is amended by inserting ``and subsection 
                (w)'' after ``subsection (q)''.
    (b) Treatment of Delayed Retirement in Cases of Simultaneous 
Entitlement to Old-Age Insurance Benefits and Widow's or Widower's 
Insurance Benefits.--Section 202(w) of the Social Security Act (42 
U.S.C. 402(w)) is amended--
            (1) by striking ``The amount'' in paragraph (1) and 
        inserting ``Subject to paragraph (7), the amount''; and
            (2) by adding at the end the following new paragraph:
    ``(7) If for any month an individual is entitled (prior to the 
application of this subsection) both to an old-age insurance benefit 
and to a widow's or widower's insurance benefit, the resulting increase 
(if any) in the amount of the widow's or widower's insurance benefit 
under paragraph (1) shall be made (prior to the application of 
subsection (k)(3)(A)) in lieu of any increase in the amount of the old-
age insurance benefit under such paragraph, unless--
            ``(A) the amount of such old-age insurance benefit would be 
        greater than the amount of such widow's or widower's insurance 
        benefit after the application of paragraph (1) to each such 
        benefit, or
            ``(B) the increase which would otherwise be made under such 
        paragraph in the amount of such old-age insurance benefit would 
        result (under the language following subparagraph (F) in the 
        first sentence of subsection (e)(1) or (f)(1)) in the 
        termination of the individual's entitlement to widow's or 
        widower's insurance benefits.''.

SEC. 47005. EFFECTIVE DATE.

    The amendments made by section 47004 shall apply with respect to 
widow's and widower's insurance benefits (under section 202(e) and (f) 
of the Social Security Act) for months after the month in which this 
subtitle is enacted.

SEC. 47006. EXEMPTION FROM TWO-YEAR WAITING PERIOD FOR DIVORCED 
              SPOUSE'S BENEFITS FOLLOWING THE DIVORCE IN CASES OF PRIOR 
              RECEIPT OF SPOUSE'S BENEFITS.

    (a) Wife's Insurance Benefits.--Section 202(b)(5)(A) of the Social 
Security Act (42 U.S.C. 402(b)(5)(A)) is amended by striking ``divorced 
wife--'' and all that follows through ``shall be entitled'' and 
inserting ``divorced wife meets the requirements of subparagraphs (A) 
through (D) of paragraph (1), shall be entitled''.
    (b) Husband's Insurance Benefits.--Section 202(c)(5)(A) of such Act 
(42 U.S.C. 402(c)(5)(A)) is amended by striking ``divorced husband--'' 
and all that follows through ``shall be entitled'' and inserting 
``divorced husband meets the requirements of subparagraphs (A) through 
(D) of paragraph (1), shall be entitled''.
    (c) Exemption From Deductions on Account of Work.--Section 
203(b)(2) of such Act (42 U.S.C. 403(b)(2)) is amended--
            (1) by striking ``(2)(A) Except as'' and all that follows 
        through ``the benefit to which'' and inserting the following: 
        ``(2) In any case in which any of the other persons referred to 
        in paragraph (1)(B) is entitled to monthly benefits as a 
        divorced spouse under subsection (b) or (c) of section 202 for 
        any month, the benefit to which''; and
            (2) by striking subparagraph (B).

SEC. 47007. EFFECTIVE DATE.

    The amendments made by section 47006 shall apply with respect to 
benefits for months after the date of the enactment of this subtitle.

SEC. 47008. FULL BENEFITS FOR DISABLED WIDOWS AND WIDOWERS WITHOUT 
              REGARD TO AGE.

    (a) Eligibility for Widow's Insurance Benefits.--Section 202(e) of 
the Social Security Act (42 U.S.C. 402(e)) is amended--
            (1) in paragraph (1)(B), by striking ``has attained age 50 
        but has not attained age 60 and'';
            (2) in paragraph (3)(A), by striking ``after attaining age 
        50 if she was entitled before such marriage occurred'' and 
        inserting ``after having been entitled''; and
            (3) in paragraph (3)(B), by striking ``after attaining age 
        50''.
    (b) Eligibility of Widower's Insurance Benefits.--Section 202(f) of 
such Act (42 U.S.C. 402(f)) is amended--
            (1) in paragraph (1)(B), by striking ``has attained age 50 
        but has not attained age 60 and'';
            (2) in paragraph (4)(A), by striking ``after attaining age 
        50 if he was entitled before such marriage occurred'' and 
        inserting ``after having been entitled''; and
            (3) in paragraph (4)(B), by striking ``after attaining age 
        50''.

SEC. 47009. EXEMPTION FROM REDUCTIONS IN BENEFITS.

    Section 202(q) of the Social Security Act (42 U.S.C. 402(q)) is 
amended--
            (1) in paragraph (3)(A), by striking ``age 50'' and 
        inserting ``age 60''; and
            (2) by adding at the end the following new paragraph:
    ``(12) Notwithstanding any other provision of this section, there 
shall be no reduction under this subsection in the widow's or widower's 
insurance benefit of an individual for any month in which such 
individual is under a disability (as defined in section 223(d)); and 
none of the provisions of this subsection shall apply with respect to 
such benefit even though such benefit may have been so reduced prior to 
the onset of such disability.''.

SEC. 47010. EFFECTIVE DATE AND REDETERMINATION OF BENEFITS.

    The amendments made by sections 47008 and 47009 shall apply with 
respect to monthly insurance benefits payable under title II of the 
Social Security Act for months after the month in which this subtitle 
is enacted. The Commissioner of Social Security (without the necessity 
of any application therefor) shall redetermine the amount of any 
widow's or widower's insurance benefit which is payable for the month 
in which this subtitle is enacted in order to reflect such amendments 
as provided in the preceding sentence.

             TITLE V--ECONOMIC IMPACT OF DOMESTIC VIOLENCE

          Subtitle A--Workplace Violence Prevention Tax Credit

SEC. 51001. CONGRESSIONAL FINDINGS.

    The Congress finds that--
            (1) there is an increasing awareness by the business 
        community and the country as a whole regarding the serious 
        problem of workplace violence against women;
            (2) there is an increased recognition that workplace 
        violence against women has severe implications for the health, 
        safety, and economic well-being of women, as well as the 
        efficiency and profitability of American companies;
            (3) recent crime statistics clearly show the serious threat 
        of workplace violence against women;
            (4) homicide is the leading cause of death for women on the 
        job, and husbands, boyfriends, and ex-partners commit 15 
        percent of all workplace homicides against women;
            (5) an estimated 8 percent of all rapes occur while victims 
        are working or on duty, at an average annual number of 13,000 
        workplace rapes each year;
            (6) husbands and boyfriends commit 13,000 acts of violence 
        against women in the workplace every year;
            (7) women are more likely than men to be attacked at work 
        by someone known to them, and 5 percent of women victimized at 
        work are attacked by a husband, boyfriend, or ex-partner;
            (8) surveys of business executives and corporate security 
        directors also underscore the heavy toll that workplace 
        violence takes on American women and American businesses;
            (9) 49 percent of senior executives recently surveyed said 
        domestic violence has a harmful effect on their company's 
        productivity, 47 percent said spousal abuse negatively impacts 
        attendance, and 44 percent said domestic violence increases 
        health care costs;
            (10) 94 percent of corporate security and safety directors 
        at companies nationwide rank domestic violence as a high-risk 
        security problem;
            (11) the public and private sectors--including the legal, 
        medical, social services, business, and religious communities--
        must come together to combat violence against women in the 
        workplace; and
            (12) the Congress, too, must play a role in encouraging 
        companies to promulgate workplace education and safety programs 
        to combat violence against women.

SEC. 51002. CREDIT FOR COSTS TO EMPLOYERS OF IMPLEMENTING WORKPLACE 
              SAFETY PROGRAMS TO COMBAT VIOLENCE AGAINST WOMEN.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 45C. WORKPLACE SAFETY PROGRAM CREDIT.

    ``(a) In General.--For purposes of section 38, the workplace safety 
program credit determined under this section for the taxable year is, 
for any employer, an amount equal to 40 percent of the violence against 
women safety and education costs paid or incurred by such employer 
during the taxable year.
    ``(b) Definitions.--For purposes of this section--
            ``(1) Violence against women safety and education cost.--
                    ``(A) In general.--The term `violence against women 
                safety and education cost' means any cost certified by 
                the Attorney General to the Secretary as being for the 
                purpose of--
                            ``(i) ensuring the safety of employees from 
                        violent crimes against women,
                            ``(ii) providing counseling to employees 
                        with respect to violent crimes against women,
                            ``(iii) providing legal or medical services 
                        to employees subjected to, or at risk from, 
                        violent crimes against women,
                            ``(iv) educating employees about the issue 
                        of violent crimes against women, or
                            ``(v) implementing human resource or 
                        personnel policies initiated to protect 
                        employees from violent crimes against women.
                    ``(B) Types of costs.--Such term includes costs 
                certified by the Attorney General to the Secretary as 
                being for the purpose of--
                            ``(i) the hiring of new security personnel 
                        in order to address violent crimes against 
                        women,
                            ``(ii) the creation of buddy systems or 
                        escort systems for walking employees to parking 
                        lots, parked cars, subway stations, or bus 
                        stops, in order to address violent crimes 
                        against women,
                            ``(iii) the purchase or installation of new 
                        security equipment, including surveillance 
                        equipment, lighting fixtures, cardkey access 
                        systems, and identification systems, in order 
                        to address violent crimes against women,
                            ``(iv) the establishment of a hotline or a 
                        counseling service about violent crimes against 
                        women, for the use of individual employees,
                            ``(v) the retention of an attorney to 
                        provide legal services to employees seeking 
                        restraining orders or other legal recourse from 
                        violent crimes against women,
                            ``(vi) the establishment of medical 
                        services addressing the medical needs of 
                        employees who are victims of violent crimes 
                        against women,
                            ``(vii) the retention of a financial expert 
                        or an accountant to provide financial 
                        counseling to employees seeking to escape from 
                        violent crimes against women,
                            ``(viii) the establishment of an education 
                        program for employees, consisting of seminars 
                        or training sessions about violent crimes 
                        against women,
                            ``(ix) studies of the cost, impact, or 
                        extent of violent crimes against women at the 
                        employer's place of business, if such studies 
                        are made available to the public and protect 
                        the identity of employees included in the 
                        study,
                            ``(x) the publication of a regularly 
                        disseminated newsletter or other regularly 
                        disseminated educational materials about 
                        violent crimes against women,
                            ``(xi) the implementation of leave policies 
                        for the purpose of allowing victims of violent 
                        crimes against women to pursue legal redress 
                        against assailants, including leave from work 
                        to attend meetings with attorneys, to give 
                        evidentiary statements or depositions, and to 
                        attend hearings or trials in court,
                            ``(xii) the implementation of flexible work 
                        policies for the purpose of allowing employees 
                        who are victims of violent crimes against 
                        women, or employees at risk with respect to 
                        such crimes, to avoid assailants, or
                            ``(xiii) the implementation of transfer 
                        policies for the purpose of allowing employees 
                        subjected to violent crimes against women to 
                        change office locations within the company in 
                        order to avoid assailants, including payment of 
                        costs for the transfer and relocation of an 
                        employee to another city, county, State, or 
                        country for the purpose of maintaining the 
                        employee's safety from violent crimes against 
                        women.
                    ``(C) Notification of possible tax consequences.--
                In no event shall any cost for goods or services which 
                may be included in the income of any employee receiving 
                or benefiting from such goods or services be treated as 
                a violence against women safety and education 
cost unless the employer notifies the employee in writing of the 
possibility of such inclusion.
            ``(2) Violent crimes against women.--
                    ``(A) In general.--The term `violent crimes against 
                women' includes sexual assault and domestic violence.
                    ``(B) Domestic violence.--The term `domestic 
                violence' includes felony or misdemeanor crimes of 
                violence committed by--
                            ``(i) a current or former spouse of the 
                        victim,
                            ``(ii) a person with whom the victim shares 
                        a child in common,
                            ``(iii) a person who is cohabitating with 
                        or has cohabitated with the victim as a spouse,
                            ``(iv) a person similarly situated to a 
                        spouse of the victim under the domestic 
                        violence or family laws of the jurisdiction in 
                        which the employee resides or the employer is 
                        located, or
                            ``(v) any other adult person against a 
                        victim who is protected from the person's acts 
                        under the domestic or family violence laws of 
                        the jurisdiction in which the employee resides 
                        or the employer is located.
            ``(3) Employee and employer.--
                    ``(A) In general.--The term `employee' includes any 
                employee of the employer or of any related person, and 
                any spouse or dependent of such an employee.
                    ``(B) Partners and partnerships.--The term 
                `employee' includes a partner and the term `employer' 
                includes a partnership.
                    ``(C) Related persons.--Persons shall be treated as 
                related to each other if such persons are treated as a 
                single employer under subsection (a) or (b) of section 
                52.
    ``(c) Coordination With Other Provisions.--No credit or deduction 
shall be allowed under any other provision of this title for any amount 
for which a credit is allowed under this section.''
    (b) Carryforward, Carryback, and Deduction for Unused Credits.--
            (1) Carryforward and carryback.--Subsection (a) of section 
        38 of such Code (relating to general business credit) is 
        amended by striking ``plus'' at the end of paragraph (10), by 
        striking the period at the end of paragraph (11) and inserting 
        ``, plus'', and by adding at the end the following new 
        paragraph:
            ``(12) the workplace safety program credit determined under 
        section 45C.''
            (2) Transitional rule for carrybacks.--Subsection (d) of 
        section 39 of such Code (relating to transitional rules) is 
        amended by adding at the end the following new paragraph:
            ``(7) No carryback of section 45c credit before effective 
        date.--No portion of the unused business credit for any taxable 
        year which is attributable to the workplace safety program 
        credit determined under section 45C may be carried back to a 
        taxable year beginning on or before the date of the enactment 
        of section 45C.''
            (3) Deduction for unused credits.--Subsection (c) of 
        section 196 of such Code (relating to deduction for certain 
        unused business credits) is amended by striking ``and'' at the 
        end of paragraph (6), by striking the period at the end of 
        paragraph (7) and inserting ``, and'', and by adding at the end 
        the following new paragraph:
            ``(8) the workplace safety program credit determined under 
        section 45C.''
    (c) Credit Not a Defense in Legal Actions.--The allowance of a 
credit under section 45C of the Internal Revenue Code of 1986 (as added 
by this subtitle) shall not absolve employers of their responsibilities 
under any other law and shall not be construed as a defense to any 
legal action (other than legal action by the Secretary of the Treasury 
under such Code).
    (d) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by adding 
at the end the following new item:

                              ``Sec. 45C. Workplace safety program 
                                        credit.''
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this subtitle.

   Subtitle B--Insurance Protection for Victims of Domestic Violence

SEC. 52001. PROHIBITION OF HEALTH INSURANCE DISCRIMINATION WITH RESPECT 
              TO VICTIMS OF DOMESTIC VIOLENCE.

    The Public Health Service Act (42 U.S.C. 201 et seq.) is amended by 
adding at the end the following new title:

  ``TITLE XXVII--PROHIBITION OF HEALTH INSURANCE DISCRIMINATION WITH 
                RESPECT TO VICTIMS OF DOMESTIC VIOLENCE

``SEC. 2701. LIMITATIONS ON UNDERWRITING.

    ``An insurer may not deny or cancel health insurance, or vary the 
terms and conditions of health insurance--
            ``(1) to an individual on the basis that the individual or 
        family member--
                    ``(A) is, has been, or may be the subject of an act 
                of domestic violence;
                    ``(B) has had prior injuries that resulted from an 
                act of domestic violence;
                    ``(C) seeks, has sought, or should have sought 
                medical or psychological treatment for protection 
                against an act of domestic violence; or
                    ``(D) seeks, has sought, or should have sought 
                shelter from an act of domestic violence; or
            ``(2) to or for a group or employer on the basis that the 
        group includes or the employer employs, or provides or 
        subsidizes insurance for, an individual described in paragraph 
        (1).

``SEC. 2702. LIMITATION ON DISCLOSURE OF INFORMATION.

    ``(a) Prohibition.--Except as provided in paragraph (2), regardless 
of the manner in which information was received, an insurer may not 
disclose or be compelled (by subpoena or any other means) to disclose 
information concerning the status of an individual as a victim of 
domestic violence (including the relationship of a medical condition to 
an incident or pattern of domestic violence), or the status of an 
individual as a family member, employer, associate, or person in a 
relationship with an individual who is the victim of domestic violence, 
unless the individual involved provides a written authorization.
    ``(b) Exception.--Notwithstanding paragraph (1), information 
concerning the abuse status of an individual may be disclosed if such 
disclosure--
            ``(1) is required under the specific order of a Federal or 
        State court; or
            ``(2) is required by the State Insurance Commissioner.

``SEC. 2703. ESTABLISHMENT OF STANDARDS.

    ``(a) Role of National Association of Insurance Commissioners.--
            ``(1) In general.--The Secretary shall request the National 
        Association of Insurance Commissioners to develop, in 
        consultation with nonprofit domestic violence victim advocacy 
        organizations, within 9 months after the date of the enactment 
        of this title, model standards that incorporate the limitations 
        on underwriting set forth in section 2701, and provide 
        procedures for enforcement for such provisions, including a 
        private right of action.
            ``(2) Review of standards.--If the Association develops 
        recommended regulations specifying the standards within the 
        period, the Secretary shall review the standards. The review 
        shall be completed within 90 days after the date the 
        regulations are developed. Unless the Secretary determines 
        within the period that such standards do not meet the 
        requirements, such standards shall serve as the standards under 
        this title, with such amendments as the Secretary determines to 
        be necessary.
    ``(b) Contingency.--If the Association does not develop the model 
regulations within the 9 month period beginning on the date of the 
enactment of this title, or the Secretary determines that the 
regulations do not specify standards that meet the requirements 
described in subsection (a), the Secretary shall specify, within 15 
months after the date of the enactment of this title, standards to 
carry out the requirements.
    ``(c) Application of Standards.--
            ``(1) In general.--Each State shall submit to the 
        Secretary, by the deadline specified in paragraph (2), a report 
        on actions the State is taking to implement and enforce the 
        standards established under this section with respect to 
        insurers and health insurance coverage offered or renewed not 
        later than such deadline.
            ``(2) Deadline for report.--Each State shall file the 
        report described in paragraph (1) not later than 1 year after 
        the date that standards are established under subsection (a) 
        or, in the event of the failure of the Association to develop 
        timely model regulations, under subsection (b).
    ``(d) Federal Role.--
            ``(1) Notice of deficiency.--If the Secretary determines 
        that a State has failed to submit a report by the deadline 
        specified by subsection (c), or finds that the State has not 
        implemented and provided adequate enforcement of the standards 
        established under subsection (a) or (b), the Secretary shall 
        notify the State and provide the State a period of 60 days in 
        which to submit the report.
            ``(2) Implementation of alternative enforcement 
        mechanism.--
                    ``(A) In general.--If, after the 60-day period, the 
                Secretary finds that such a failure has not been 
                corrected, the Secretary shall within 30 days provide 
                for a mechanism for the implementation and enforcement 
                of such standards in the State as the Secretary 
                determines to be appropriate.
                    ``(B) Civil penalty.--Under any implementation and 
                enforcement mechanism established by the Secretary 
                pursuant to this paragraph, the Secretary shall have 
                the authority to impose on an insurer a civil monetary 
                penalty in the amount of $10,000 for each day during 
                which such insurer violates the requirements described 
                in section 2701, or the standards developed under this 
                section. Liability for such penalty shall begin to 
                accrue on the 30th day after the Secretary has provided 
                such insurer with notice of its noncompliance, if the 
                insurer has failed to correct the deficiency by such 
                date.
                    ``(C) Effective period.--Any such implementation 
                and enforcement mechanism established by the Secretary 
                shall take effect with respect to insurers, and health 
                insurance coverage offered or renewed, on or after 3 
                months after the date of the Secretary's finding under 
                paragraph (1), and until the date the Secretary finds 
                that such a failure has been corrected.
            ``(3) Federal civil right of action.--
                            ``(A) In general.--Any individual aggrieved 
                        as a result of conduct prohibited by section 
                        2701 may bring a civil action in the 
                        appropriate United States district court 
                        against the insurer.
                            ``(B) Relief.--Upon proof of such conduct 
                        by a preponderance of the evidence, the insurer 
                        shall be subject to a civil penalty that may 
                        include temporary, preliminary, or permanent 
                        injunctive relief and compensatory and punitive 
                        damages, as well as the costs of suit and 
                        reasonable fees for the aggrieved individual's 
                        attorneys. With respect to compensatory 
                        damages, the aggrieved individual may elect, at 
                        any time prior to the rendering of final 
                        judgment, to recover in lieu of actual damages, 
                        an award of statutory damages in the amount of 
                        $5,000 for each violation.

``SEC. 2704. APPLICATION TO GROUP HEALTH PLANS AND ENFORCEMENT.

    ``(a) Application.--Subject to subsection (b), the prohibitions in 
section 2701 and the standards developed under section 2702 shall apply 
to group health plans providing health coverage in the same manner as 
they apply to insurers providing health insurance coverage. The penalty 
described in section 2702(d)(2)(B) may be imposed by the Secretary of 
Labor on group health plans that are not in compliance with the 
requirements of sections 2701 and 2702.
    ``(b) Substitution of Federal Officials.--For purposes of 
subsection (a), any reference in section 2702 to--
            ``(1) a State or the Secretary of Health and Human Services 
        is deemed to be a reference to the Secretary of Labor; and
            ``(2) an insurer or health insurance coverage is deemed to 
        be a reference to a group health plan and health coverage, 
        respectively.
    ``(c) Enforcement.--For purposes of part 5 of subtitle B of title I 
of the Employee Retirement Income Security Act of 1974 (29 U.S.C 1131 
et seq.) the provisions of this title insofar as they relate to group 
health plans shall be deemed to be provisions of title I of such Act 
irrespective of exclusions under section 4(b) of such Act.
    ``(d) Regulatory Authority.--With respect to the regulatory 
authority of the Secretary of Labor under this title pursuant to 
subsection (c), section 505 of the Employee Retirement Income Security 
Act of 1974 (29 U.S.C. 1135) shall apply.

``SEC. 2705. DEFINITIONS.

    ``For purposes of this title:
            ``(1) Act of domestic violence.--The term `act of domestic 
        violence' means the occurrence of one or more of the following 
        acts between family or household members, current or former 
        sexual or intimate partners, or persons sharing biological 
        parenthood--
                    ``(A) attempting to cause or intentionally, 
                knowingly, or recklessly causing bodily injury, rape, 
                or sexual abuse as such term is defined in section 2242 
                of title 18, United States Code;
                    ``(B) placing, by physical menace, another 
                individual in reasonable fear of imminent serious 
                bodily injury;
                    ``(C) infliction of false imprisonment; or
                    ``(D) physically or sexually abusing minor 
                children.
            ``(2) Association.--The term `Association' means the 
        National Association of Insurance Commissioners.
            ``(3) Insurer.--
                    ``(A) In general.--The term `insurer' means a 
                health benefit plan or a health care provider that 
                conducts activities related to the protection of public 
                health.
                    ``(B) Health benefit plan.--The term `health 
                benefit plan' means any public or private entity or 
                program that provides for payments for health care, 
                including--
                            ``(i) a group health plan (as defined in 
                        section 607 of the Employee Retirement Income 
                        Security Act of 1974 (29 U.S.C. 1167)) or a 
                        multiple employer welfare arrangement (as 
                        defined in section 3(40) of such Act) that 
                        provides health benefits; and
                            ``(ii) any other health insurance 
                        arrangement, including any arrangement 
                        consisting of a hospital or medical expense 
                        incurred policy or certificate, hospital or 
                        medical service plan contract, or health 
                        maintenance organization subscriber contract.
                    ``(C) Health care provider.--The term `health care 
                provider' means a provider of services (as defined in 
                section 1861(u) of the Social Security Act (42 U.S.C. 
                1395u)), a physician, a supplier, or any other person 
                furnishing health care, including a Federal or State 
                program that provides directly for the provision of 
                health care to beneficiaries.''.

             Subtitle C--Fairness to Minority Women Health

SEC. 53001. EXCEPTION TO AFDC INCOME AND RESOURCES ATTRIBUTION RULE FOR 
              CERTAIN BATTERED ALIENS.

    (a) In General.--Section 415(f) of the Social Security Act (42 
U.S.C. 615(f)) is amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``who is--'' and inserting ``who--'';
            (2) in each of paragraphs (1) and (2), by inserting ``is'' 
        before ``admitted'';
            (3) in paragraph (3), by inserting ``is'' before 
        ``paroled'';
            (4) in paragraph (4)--
                    (A) by inserting ``is'' before ``granted''; and
                    (B) by striking ``or'' at the end;
            (5) in paragraph (5)--
                    (A) by inserting ``is'' before ``a Cuban''; and
                    (B) by striking the period at the end and inserting 
                a semicolon; and
            (6) by adding at the end the following:
            ``(6) is battered by, or is the subject of extreme cruelty 
        (including physical acts resulting in physical injury or a 
        threat of physical injury, sexual abuse, rape, or mental abuse) 
        perpetrated by, the spouse or other person who executed the 
        affidavit of support or similar agreement referred to in 
        subsection (a) with respect to the alien, but only after the 
        first day on which the battery or cruelty occurs after the 
        alien enters into the United States; or
            ``(7) is a dependent child, and a relative with whom the 
        child is living is battered by, or is the subject of extreme 
        cruelty (including physical acts resulting in physical injury 
        or a threat of physical injury, sexual abuse, rape, or mental 
        abuse) perpetrated by, the parent or other person who executed 
        the affidavit of support or similar agreement referred to in 
        subsection (a) with respect to the alien, but only after the 
        first day on which the battery or cruelty occurs after the 
        alien enters into the United States.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect 90 days after the date of the enactment of this subtitle.

SEC. 53002. AMENDMENT TO THE FOOD STAMP ACT OF 1977.

    (a) In General.--Section 5(i) of the Food Stamp Act of 1977 (7 
U.S.C. 2014(i)) is amended by adding at the end the following:
    ``(F) If an alien is battered by the alien's sponsor, or is the 
subject of extreme cruelty perpetrated by the sponsor, after such alien 
enters the United States, then after the date the battery or cruelty 
occurs, this subsection (other than subparagraph (E) of paragraph (2)) 
shall not apply with respect to such alien and to any child of such 
alien less than 18 years of age and residing with such alien.''.
    (b) The amendment made by subsection (a) shall take effect 90 days 
after the date of the enactment of this subtitle.

SEC. 53003. REQUIRING CERTAIN RECIPIENTS OF FEDERAL FINANCIAL 
              ASSISTANCE TO HAVE PERSONNEL AVAILABLE WHO SPEAK 
              PREDOMINANT LANGUAGE USED IN AREA.

    (a) Providers of Obstetrical and Gynecological Services.--
            (1) Medicaid.--Section 1903(i) of the Social Security Act 
        (42 U.S.C. 1396b(i)) is amended--
                    (A) by striking ``or'' at the end of paragraph 
                (14);
                    (B) by striking the period at the end of paragraph 
                (15) and inserting ``; or''; and
                    (C) by inserting after paragraph (15) the following 
                new paragraph:
            ``(16) with respect to any amount expended for obstetrical 
        or gynecological services furnished by or through a hospital, 
        clinic, or other institutional provider, unless the hospital, 
        clinic, or provider has available at least one individual who 
        is able to communicate in the predominant language used by 
        residents of the area in which the hospital, clinic, or 
        provider is located (as determined by the Secretary on the 
        basis of information provided by the Secretary of Commerce 
        pursuant to the most recent decennial census).''.
            (2) Family planning services.--Section 1001 of the Public 
        Health Service Act (42 U.S.C. 300) is amended--
                    (A) by redesignating subsections (c) and (d) as 
                subsections (d) and (e), respectively; and
                    (B) by inserting after subsection (b) the following 
                subsection:
    ``(c) The Secretary may make a grant under this section only if the 
applicant involved agrees to ensure that, of the individuals providing 
services under the grant, at least one will be an individual who is 
able to communicate in the predominant language used by residents of 
the area in which the family planning project involved is located (as 
determined by the Secretary on the basis of information provided by the 
Secretary of Commerce pursuant to the most recent decennial census).''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to services furnished on or after October 1, 1996.
    (b) Domestic Violence Shelters.--
            (1) In general.--The Family Violence Prevention and 
        Services Act (42 U.S.C. 10401 et seq.) is amended by adding at 
        the end the following new section:

``SEC. 319. AVAILABILITY OF BILINGUAL SERVICES.

    ``No funds may be made available under this title for any provider 
of shelter or related assistance unless the provider has available at 
least one individual who is able to communicate in the predominant 
language used by residents of the area in which the provider is located 
(as determined by the Secretary on the basis of information provided by 
the Secretary of Commerce pursuant to the most recent decennial 
census).''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply to funds made available on or after October 1, 
        1996.

SEC. 53004. STUDY REGARDING DOMESTIC VIOLENCE AND LATINA WOMEN.

    (a) In General.--With respect to cases of domestic violence in 
which Latina women are the victims, the Secretary of Health and Human 
Services, in consultation with the Attorney General of the United 
States, shall conduct a study for the following purposes:
            (1) To determine the incidence of such cases, and to 
        provide a comparison of such estimate with the relevant 
        incidence for other populations of women (utilizing existing 
        data regarding such other populations).
            (2) To determine whether and to what extent the causes and 
        effects for such cases are different than for cases of domestic 
        violence in which other populations of women are the victims 
        (utilizing existing data regarding such other populations).
    (b) Report.--Not later than 3 years after the date of the enactment 
of this subtitle, the Secretary of Health and Human Services shall 
submit to the Congress a report describing the findings made in the 
study under subsection (a).

           Subtitle D--Battered Women's Employment Protection

SEC. 54001. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds that--
            (1) violence against women is the leading cause of physical 
        injury to women, and the Department of Justice estimates that 
        intimate partners commit more than one million violent crimes 
        against women every year;
            (2) the Bureau of Labor Statistics predicts that women will 
        account for two-thirds of all new entrants into the workforce 
        between now and the year 2000;
            (3) violence against women dramatically affects women's 
        workforce participation, insofar as one- quarter of battered 
        women surveyed had lost a job due at least in part to the 
        effects of domestic violence, and over half had been harassed 
        by their abuser at work;
            (4) the availability of economic support is a critical 
        factor in women's ability to leave abusive situations that 
        threaten them and their children, and over half of battered 
        women surveyed stayed with their batterers because they lacked 
        resources to support themselves and their children;
            (5) a report by the New York City Victims Services Agency 
        found that abusive spouses and lovers harass 74 percent of 
        battered women at work and 54 percent of battering victims miss 
        at least 3 days of work per month and 56 percent are late for 
        work at least 5 times per month, and a University of Minnesota 
        study found that 24 percent of women in support groups for 
        battered women had lost a job partly because of being abused;
            (6) a survey of State unemployment insurance agency 
        directors by the Federal Advisory Council on Unemployment 
        Compensation found that in 31 States battered women who leave 
        work as a result of domestic violence do not qualify for 
        unemployment benefits, in 9 States the determination often 
        varies depending on the facts and circumstances, and in only 13 
        States are they usually considered qualified for unemployment 
        benefits;
            (7) a study by the New York State Department of Labor found 
        that, when filing for unemployment insurance benefits, domestic 
        violence victims frequently hide their victimization and do not 
        disclose the domestic violence as a reason for their problems 
        with the job or need to separate from employment;
            (8) the same New York State study found that 75 percent of 
        employed victims of domestic violence must communicate with 
        doctors, lawyers, shelters, counselors, family and friends from 
        their workplaces because they cannot do so at home;
            (9) 49 percent of senior executives recently surveyed said 
        domestic violence has a harmful effect on their company's 
        productivity, 47 percent said domestic violence negatively 
        affects attendance, and 44 percent said domestic violence 
        increases health care costs, and the Bureau of National Affairs 
        estimates that domestic violence costs employers between 3 and 
        5 billion dollars per year; and
            (10) existing Federal and State legislation does not 
        expressly authorize battered women to take leave from work to 
        seek legal assistance and redress, counseling, or assistance 
with safety planning and activities.
    (b) Purposes.--Pursuant to the affirmative power of Congress to 
enact this subtitle under section 5 of the Fourteenth Amendment to the 
Constitution, as well as under section 8 of Article I of the 
Constitution, the purposes of this subtitle are--
            (1) to promote the national interest in reducing domestic 
        violence by enabling victims of domestic violence to maintain 
        the financial independence necessary to leave abusive 
        situations, to achieve safety and minimize the physical and 
        emotional injuries from domestic violence, and to reduce the 
        devastating economic consequences of domestic violence, by--
                    (A) providing unemployment insurance for victims of 
                domestic violence who are forced to leave their 
                employment as a result of domestic violence; and
                    (B) entitling employed victims of domestic violence 
                to take reasonable leave to seek medical help, legal 
                assistance, counseling, and safety planning and 
                assistance without penalty from their employer;
            (2) to promote the purposes of the Fourteenth Amendment by 
        protecting the civil and economic rights of victims of domestic 
        violence and by furthering the equal opportunity of women and 
        men to employment and economic self-sufficiency;
            (3) to minimize the negative impact on interstate commerce 
        from dislocations of employees and harmful effects on 
        productivity, health care costs, and employer costs from 
        domestic violence; and
            (4) to accomplish the purposes described in paragraphs (1) 
        , (2) and (3) in a manner that accommodates the legitimate 
        interests of employers.

SEC. 54002. UNEMPLOYMENT COMPENSATION.

    (a) Unemployment compensation.--Section 3304(a) of the Internal 
Revenue Code of 1986 is amended--
            (1) by striking ``and'' at the end of paragraph (18),
            (2) by striking the period at the end of paragraph (19) and 
        inserting ``; and'',
            (3) by adding after paragraph (19) the following:
            ``(20) compensation is to be provided where an individual 
        is separated from employment due to circumstances directly 
        resulting from the individual's experience of domestic 
        violence.'',
            (4) by redesignating subsections (b) through (f) as 
        subsections (c) through (g), respectively, and
            (5) by adding after subsection (a) the following:
    ``(b) Construction.--
            ``(1) For the purpose of determining, under subsection 
        (a)(20), whether an employee's separation from employment is 
        `directly resulting' from the individual's experience of 
        domestic violence, it shall be sufficient if the separation 
        from employment resulted from--
                    ``(A) the employee's reasonable fear of future 
                domestic violence at or en route to or from her place 
                of employment;
                    ``(B) the employee's wish to relocate to another 
                geographic area in order to avoid future domestic 
                violence against the employee or the employee's family;
                    ``(C) the employee's need to recover from traumatic 
                stress resulting from the employee's experience of 
                domestic violence;
                    ``(D) the employer's denial of the employee's 
                request for temporary leave from employment to deal 
                with domestic violence and its aftermath, as provided 
                in section 54003 of the Economic Equity Act of 1996; or
                    ``(E) any other respect in which domestic violence 
                causes the employee to reasonably believe that 
                termination of employment is necessary for the future 
                safety of the employee or the employee's family.
            ``(2) For purposes of subsection (a)(20), where State law 
        requires the employee to have made reasonable efforts to retain 
        employment as a condition for receiving unemployment 
        compensation, it shall be sufficient that the employee--
                    ``(A) sought protection from or assistance in 
                responding to domestic violence, including calling the 
                police or seeking legal, social work, medical, clergy, 
                or other assistance;
                    ``(B) sought safety, including refuge in a shelter 
                or temporary or permanent relocation, whether or not 
                the employee actually obtained such refuge or 
                accomplished such relocation; or
                    ``(C) reasonably believed that options such as a 
                leave, transfer, or alternative work schedule would not 
                be sufficient to guarantee the employee or the 
                employee's family's safety.
            ``(3) For purposes of subsection (a)(20), where State law 
        requires the employee to actively search for employment after 
        separation from employment as a condition for receiving 
        unemployment compensation, such requirement shall be deemed to 
        be met where the employee is temporarily unable to actively 
        search for employment because the employee is engaged in 
        seeking safety or relief for the employee or the employee's 
        family from domestic violence, including--
                    ``(A) going into hiding or relocating or attempting 
                to do so, including activities associated with such 
                relocation or hiding, such as seeking to obtain 
                sufficient shelter, food, schooling for children, or 
                other necessities of life for the employee or the 
                employee's family;
                    ``(B) actively pursuing legal protection or 
                remedies, including meeting with the police, going to 
                court to make inquiries or file papers, meeting with 
                attorneys, or attending court proceedings; or
                    ``(C) participating in psychological, social, or 
                religious counseling or support activities to assist 
                the employee in ending domestic violence.
            ``(4) In determining if an employee meets the requirements 
        of paragraphs (1), (2), and (3), the employer or reviewer of 
        any claim of an employee may require the employee to provide a 
        statement along with--
                    ``(A) documentation, such as police or court 
                records, or documentation from a shelter worker, 
                attorney, clergy, medical or other professional from 
                whom the employee has sought assistance in dealing with 
                domestic violence; or
                    ``(B) other corroborating evidence, such as a 
                statement from any other individual with knowledge of 
                the circumstances which provide the basis for the 
                claim, or physical evidence of domestic violence, such 
                as photographs, torn or bloody clothes, etc.''
    (b) Social Security Personnel Training.--Section 303(a) of the 
Social Security Act (42 U.S.C. 503(a)(4)) is amended by redesignating 
paragraphs (4) through (10) as paragraphs (5) through (11), 
respectively, and by adding after paragraph (3) the following:
            ``(4) Such methods of administration as will ensure that 
        claims reviewers and hearing personnel are adequately trained 
        in the nature and dynamics of domestic violence and in methods 
        of ascertaining information about possible experiences of 
        domestic violence, so that employment separations stemming from 
        domestic violence are reliably screened, identified, and 
        adjudicated.''.
    (c) Definitions.--Section 3306 of the Internal Revenue Code of 1986 
is amended by adding at the end the following:
    ``(u) Domestic violence.--The term `domestic violence' includes 
abuse committed against an employee or a family member of the employee 
by--
            ``(1) a current or former spouse of the employee;
            ``(2) a person with whom the employee shares a child in 
        common;
            ``(3) a person who is cohabitating with or has cohabitated 
        with the employee as a romantic or intimate partner; or
            ``(4) a person from whom the employee would be eligible for 
        protection under the domestic violence, protection order, or 
        family laws of the jurisdiction in which the employee resides 
        or the employer is located.
    ``(v) Abuse.--The term `abuse' includes--
            ``(1) physical acts resulting in, or threatening to result 
        in, physical injury;
            ``(2) sexual abuse, sexual activity involving a dependent 
        child, or threats of or attempts at sexual abuse;
            ``(3) mental abuse, including threats, intimidation, acts 
        designed to induce terror, or restraints on liberty; and
            ``(4) deprivation of medical care, housing, food or other 
        necessities of life.''.

SEC. 54003. LEAVE FROM EMPLOYMENT.

    (a) In General.--Employers subject to the Federal Family and 
Medical Leave Act (29 U.S.C. 2601 et seq), any State law addressing 
family, medical, sick, or other kind of leave from employment, or an 
employment benefits program or policy or collective bargaining 
agreement addressing family, medical, sick, or other kind of leave from 
employment, shall provide leave to employees seeking temporary absences 
from employment to deal with domestic violence and its aftermath in 
accordance with this section.
    (b) Existing Leave Useable for Domestic Violence.--Where family, 
medical, sick, or any other kind of leave from employment is available 
to employees pursuant to the Federal Family and Medical Leave Act of 
1993 (29 U.S.C. 2601 et seq.), any State law, an existing employment 
benefits program or plan, or collective bargaining agreement, employees 
shall be entitled to use such leave for the purpose of dealing with 
domestic violence and its aftermath.
    (c) Minimum Leave for Domestic Violence.--
            (1) In general.--Any employee who is not entitled to leave 
        from employment for the purpose of dealing with domestic 
        violence and its aftermath pursuant to subsection (b) or who 
        has used up the employee's available leave pursuant to 
        subsection (b) and who is not an employee who has taken 12 
        weeks of leave for the purpose of dealing with domestic 
        violence and its aftermath, shall be entitled to take up to 10 
        days per year of unpaid leave without penalty, for that 
        purpose.
            (2) Substitution.--An employee may elect, or an employer 
        may require the employee, to substitute accrued paid leave for 
        any part of the 10 days of unpaid leave provided under 
        paragraph (1).
    (d) Dealing With Domestic Violence and its Aftermath.--The 
following activities constitute means of ``dealing with domestic 
violence and its aftermath,'' which shall render an employee eligible 
for leave under this section:
            (1) Experiencing domestic violence.
            (2) Seeking medical attention for injuries caused by 
        domestic violence, except for ``serious health conditions'' 
        where covered by the Family and Medical Leave Act of 1993 (29 
        U.S.C. 2601 et seq.).
            (3) Seeking legal assistance or remedies, including 
        communicating with the police or an attorney, or participating 
        in any legal proceeding related to domestic violence.
            (4) Attending support groups for victims of domestic 
        violence.
            (5) Obtaining psychological counseling related to 
        experiences of domestic violence.
            (6) Participating in safety planning and other actions to 
        increase safety from future domestic violence, including 
        temporary or permanent relocation.
            (7) Any other activity necessitated by domestic violence 
        which must be undertaken during hours of employment.
    (e) Construction.--In determining if an employee meets the 
requirements of subsections (b), (c), and (d), the employer or reviewer 
of any claim of an employee may require the employee to provide a 
statement along with--
            (1) documentation, such as police or court records, or 
        documentation from a shelter worker, attorney, clergy, medical 
        or other professional from whom the employee has sought 
        assistance in dealing with domestic violence; or
            (2) other corroborating evidence, such as a statement from 
        any other individual with knowledge of the circumstances which 
        provide the basis for the claim, or physical evidence of 
        domestic violence, such as photographs, torn or bloody clothes, 
        etc.
    (f) Enforcement.--
            (1) Public enforcement.--The Secretary of Labor shall have 
        the powers set forth in subsections (b), (c), (d) and (e) of 
        section 107 of the Family and Medical Leave Act of 1993 (29 
        U.S.C. 2617) for the purpose of public enforcement of any 
        alleged violations of this section against any employer.
            (2) Private enforcement.--
                    (A) Private and federal employers.--The remedies 
                and procedures set forth in subsection (a) of section 
                107 of the Family and Medical Leave Act of 1993 (29 
                U.S.C. 2617) shall be the remedies and procedures 
                pursuant to which an employee may initiate a legal 
                action against a Federal or private employer for 
                alleged violations of this section.
                    (B) State Employers.--
                            (i) Qui tam actions.--
                                    (I) An employee of a State employer 
                                may bring a civil action for a 
                                violation of this section for the 
                                employee and for the United States 
                                Government (referred to as a `Qui Tam' 
                                action). The action shall be brought in 
                                the name of the United States 
                                Government. The action may be dismissed 
                                only if the court and the Secretary of 
                                Labor give written consent to the 
                                dismissal stating their reasons for 
                                consenting. The Qui Tam plaintiff may 
                                recover damages or injunctive relief to 
                                the same extent provided in 
                                subparagraph (A).
                                    (II) The right provided by 
                                subclause (I) to bring a Qui Tam action 
                                shall terminate on the filing of a 
                                complaint by the Secretary of Labor in 
                                an action seeking damages or monetary 
                                relief on behalf of the affected 
                                employee under paragraph (1) unless 
                                that action is dismissed without 
                                prejudice on motion of the Secretary of 
                                Labor.
            (3) Employer liability under other laws.--Nothing in this 
        section shall be construed to limit the liability of an 
        employer to an employee for harm suffered relating to the 
        employee's experience of domestic violence pursuant to any 
        other State or Federal law or legal remedy.
    (g) Definitions.--For purposes of this section:
            (1) Employer.--The term `employer' includes any person 
        subject to the Federal Family and Medical Leave Act of 1993 (29 
        U.S.C. 2601 et seq.) or any State law addressing family, 
        medical, sick, or any other kind of leave from employment, or 
        any employer granting family, medical, sick, or other kind of 
        leave from employment under an employment benefits program or 
        policy or collective bargaining agreement in effect as of the 
        date of enactment of this subtitle.
            (2) Employee.--The term `employee' refers to any person 
        eligible to receive leave pursuant to the Federal Family and 
        Medical Leave Act of 1993 (29 U.S.C. 2601 et seq.), any State 
        law addressing medical, family, sick, or other kind of leave 
        from employment, or an employment benefits program or policy or 
        collective bargaining agreement in effect as of the date of 
        enactment of this subtitle.
            (3) Domestic violence.--The term `domestic violence' has 
        the meaning assigned to such term by section 3306(u) of the 
        Internal Revenue Code of 1986.

SEC. 54004. EFFECT ON OTHER LAWS AND EMPLOYMENT BENEFITS.

            (1) More protective.--Nothing in this subtitle or the 
        amendments made by this subtitle shall be construed to 
        supersede any provision of any Federal, State or local law, 
        collective bargaining agreement, or other employment benefit 
        program which provides greater unemployment compensation or 
        leave benefits for employed victims of domestic violence than 
        the rights established under this subtitle or such amendments.
            (2) Less protective.--The rights established for employees 
        under this subtitle or the amendments made by this subtitle 
        shall not be diminished by any collective bargaining agreement, 
        any employment benefit program or plan, or any State or local 
        law.

        Subtitle E--Domestic Violence Legal Services Eligibility

SEC. 55001. INCOME RULE FOR VICTIMS OF DOMESTIC VIOLENCE.

    Section 1007(a) of the Legal Services Corporation Act (42 U.S.C. 
2996f(a)) is amended by inserting after and below paragraph (10) the 
following: ``In establishing income levels under paragraph (2)(A) to 
determine if a client is eligible for assistance, the Corporation, in 
the case of a client who is the victim of domestic violence, shall 
prescribe that only the income of such a client will be considered in 
making such determination. For purposes of the preceding sentence, the 
term `domestic violence' has the meaning given such term by section 
2003(1) of the Omnibus Crime Control and Safe Streets Act of 1988 (42 
U.S.C. 3796gg-2(1)).''.
                                 <all>