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106th Congress                                            Rept. 106-424
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     Part 1

======================================================================



 
                       FATHERS COUNT ACT OF 1999

                                _______
                                

                October 28, 1999.--Ordered to be printed

                                _______


    Mr. Archer, from the Committee on Ways and Means, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 3073]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Ways and Means, to whom was referred the 
bill (H.R. 3073) to amend part A of title IV of the Social 
Security Act to provide for grants for projects designed to 
promote responsible fatherhood, and for other purposes, having 
considered the same, reports favorably thereon with an 
amendment and recommends that the bill as amended do pass.

                                CONTENTS

                                                                   Page
 I. Introduction.....................................................18
        A. Purpose and Summary...................................    18
        B. Background and Need for Legislation...................    18
        C. Legislative History...................................    20
II. Explanation of Provisions........................................20
III.Vote of The Committee............................................50

IV. Budget Effects of The Bill.......................................50
        A. Committee Estimate of Budgetary Effects...............    50
        B. Statement Regarding New Budget Authority And Tax 
            Expenditures.........................................    50
        C. Cost Estimate Prepared by The Congressional Budget 
            Office...............................................    50
 V. Other Matters Required to Be Discussed Under The Rules of The Hou59
        A. Committee Oversight Findings And Recommendations......    59
        B. Summary of Findings And Recommendations of The 
            Government Reform And Oversight Committee............    59
        C. Constitutional Authority Statement....................    60
VI. Changes in Existing Laws Made by The Bill, as Reported...........60

  The amendment is as follows:
  Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Fathers Count Act of 
1999''.
  (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.

                   TITLE I--FATHERHOOD GRANT PROGRAM

Sec. 101. Fatherhood grants.

         TITLE II--FATHERHOOD PROJECTS OF NATIONAL SIGNIFICANCE

Sec. 201. Fatherhood projects of national significance.

             TITLE III--WELFARE-TO-WORK PROGRAM ELIGIBILITY

Sec. 301. Flexibility in eligibility for participation in welfare-to-
work program.
Sec. 302. Limited vocational educational training included as allowable 
activity.
Sec. 303. Certain grantees authorized to provide employment services 
directly.
Sec. 304. Simplification and coordination of reporting requirements.
Sec. 305. Use of State information to aid administration of welfare-to-
work formula grant funds.

TITLE IV--ALTERNATIVE PENALTY PROCEDURE RELATING TO STATE DISBURSEMENT 
                                 UNITS

Sec. 401. Alternative penalty procedure relating to State disbursement 
units.

                     TITLE V--FINANCING PROVISIONS

Sec. 501. Use of new hire information to assist in collection of 
defaulted student loans and grants.
Sec. 502. Elimination of set-aside of portion of welfare-to-work funds 
for successful performance bonus.

                        TITLE VI--MISCELLANEOUS

Sec. 601. Change dates for evaluation.
Sec. 602. Report on undistributed child support payments.
Sec. 603. Sense of the Congress.
Sec. 604. Additional funding for welfare evaluation study.
Sec. 605. Training in child abuse and neglect proceedings.
Sec. 606. Use of new hire information to assist in administration of 
unemployment compensation programs.
Sec. 607. Immigration provisions.

                   TITLE I--FATHERHOOD GRANT PROGRAM

SEC. 101. FATHERHOOD GRANTS.

  (a) In General.--Part A of title IV of the Social Security Act (42 
U.S.C. 601-679b) is amended by inserting after section 403 the 
following:

``SEC. 403A. FATHERHOOD PROGRAMS.

  ``(a) Purpose.--The purpose of this section is to make grants 
available to public and private entities for projects designed to--
          ``(1) promote marriage through counseling, mentoring, 
        disseminating information about the advantages of marriage, 
        enhancing relationship skills, teaching how to control 
        aggressive behavior, and other methods;
          ``(2) promote successful parenting through counseling, 
        mentoring, disseminating information about good parenting 
        practices including family planning, training parents in money 
        management, encouraging child support payments, encouraging 
        regular visitation between fathers and their children, and 
        other methods; and
          ``(3) help fathers and their families avoid or leave cash 
        welfare provided by the program under part A and improve their 
        economic status by providing work first services, job search, 
        job training, subsidized employment, career-advancing 
        education, job retention, job enhancement, and other methods.
  ``(b) Fatherhood Grants.--
          ``(1) Applications.--An entity desiring a grant to carry out 
        a project described in subsection (a) may submit to the 
        Secretary an application that contains the following:
                  ``(A) A description of the project and how the 
                project will be carried out.
                  ``(B) A description of how the project will address 
                all 3 of the purposes of this section.
                  ``(C) A written commitment by the entity that the 
                project will allow an individual to participate in the 
                project only if the individual is--
                          ``(i) a father of a child who is, or within 
                        the past 24 months has been, a recipient of 
                        assistance or services under a State program 
                        funded under this part;
                          ``(ii) a father, including an expectant or 
                        married father, whose income (net of court-
                        ordered child support) is less than 150 percent 
                        of the poverty line (as defined in section 
                        673(2) of the Omnibus Budget Reconciliation Act 
                        of 1981, including any revision required by 
                        such section, applicable to a family of the 
                        size involved); or
                          ``(iii) a parent referred to in paragraph 
                        (3)(A)(iii).
                  ``(D) A written commitment by the entity that the 
                entity will provide for the project, from funds 
                obtained from non-Federal sources, amounts (including 
                in-kind contributions) equal in value to--
                          ``(i) 20 percent of the amount of any grant 
                        made to the entity under this subsection; or
                          ``(ii) such lesser percentage as the 
                        Secretary deems appropriate (which shall be not 
                        less than 10 percent) of such amount, if the 
                        application demonstrates that there are 
                        circumstances that limit the ability of the 
                        entity to raise funds or obtain resources.
          ``(2) Consideration of applications by interagency panels.--
                  ``(A) First panel.--
                          ``(i) Establishment.--There is established a 
                        panel to be known as the `Fatherhood Grants 
                        Recommendations Panel' (in this subparagraph 
                        referred to as the `Panel').
                          ``(ii) Membership.--
                                  ``(I) In general.--The Panel shall be 
                                composed of 10 members, as follows:
                                          ``(aa) 2 members of the Panel 
                                        shall be appointed by the 
                                        Secretary.
                                          ``(bb) 2 members of the Panel 
                                        shall be appointed by the 
                                        Secretary of Labor.
                                          ``(cc) 2 members of the Panel 
                                        shall be appointed by the 
                                        Chairman of the Committee on 
                                        Ways and Means of the House of 
                                        Representatives.
                                          ``(dd) 1 member of the Panel 
                                        shall be appointed by the 
                                        ranking minority member of the 
                                        Committee on Ways and Means of 
                                        the House of Representatives.
                                          ``(ee) 2 members of the Panel 
                                        shall be appointed by the 
                                        Chairman of the Committee on 
                                        Finance of the Senate.
                                          ``(ff) 1 member of the Panel 
                                        shall be appointed by the 
                                        ranking minority member of the 
                                        Committee on Finance of the 
                                        Senate.
                                  ``(II) Conflicts of interest.--An 
                                individual shall not be eligible to 
                                serve on the Panel if such service 
                                would pose a conflict of interest for 
                                the individual.
                                  ``(III) Timing of appointments.--The 
                                appointment of members to the Panel 
                                shall be completed not later than March 
                                1, 2000.
                          ``(iii) Duties.--
                                  ``(I) Review and make recommendations 
                                on project applications.--The Panel 
                                shall review all applications submitted 
                                pursuant to paragraph (1), and make 
                                recommendations to the Secretary 
                                regarding which applicants should be 
                                awarded grants under this subsection, 
                                with due regard for the provisions of 
                                paragraph (3), but shall not recommend 
                                that a project be awarded such a grant 
                                if the application describing the 
                                project does not attempt to meet the 
                                requirement of paragraph (1)(B).
                                  ``(II) Timing.--The Panel shall make 
                                such recommendations not later than 
                                September 1, 2000.
                          ``(iv) Term of office.--Each member appointed 
                        to the Panel shall serve for the life of the 
                        Panel.
                          ``(v) Prohibition on compensation.--Members 
                        of the Panel may not receive pay, allowances, 
                        or benefits by reason of their service on the 
                        Panel.
                          ``(vi) Travel expenses.--Each member of the 
                        Panel shall receive travel expenses, including 
                        per diem in lieu of subsistence, in accordance 
                        with sections 5702 and 5703 of title 5, United 
                        States Code.
                          ``(vii) Meetings.--The Panel shall meet as 
                        often as is necessary to complete the business 
                        of the Panel.
                          ``(viii) Chairperson.--The Chairperson of the 
                        Panel shall be designated by the Secretary at 
                        the time of appointment.
                          ``(ix) Staff of federal agencies.--The 
                        Secretary may detail any personnel of the 
                        Department of Health and Human Services and the 
                        Secretary of Labor may detail any personnel of 
                        the Department of Labor to the Panel to assist 
                        the Panel in carrying out its duties under this 
                        subparagraph.
                          ``(x) Obtaining official data.--The Panel may 
                        secure directly from any department or agency 
                        of the United States information necessary to 
                        enable it to carry out this subparagraph. On 
                        request of the Chairperson of the Panel, the 
                        head of the department or agency shall furnish 
                        that information to the Panel.
                          ``(xi) Mails.--The Panel may use the United 
                        States mails in the same manner and under the 
                        same conditions as other departments and 
                        agencies of the United States.
                          ``(xii) Termination.--The Panel shall 
                        terminate on September 1, 2000.
                  ``(B) Second panel.--
                          ``(i) Establishment.--Effective January 1, 
                        2001, there is established a panel to be known 
                        as the `Fatherhood Grants Recommendations 
                        Panel' (in this subparagraph referred to as the 
                        `Panel').
                          ``(ii) Membership.--
                                  ``(I) In general.--The Panel shall be 
                                composed of 10 members, as follows:
                                          ``(aa) 2 members of the Panel 
                                        shall be appointed by the 
                                        Secretary.
                                          ``(bb) 2 members of the Panel 
                                        shall be appointed by the 
                                        Secretary of Labor.
                                          ``(cc) 2 members of the Panel 
                                        shall be appointed by the 
                                        Chairman of the Committee on 
                                        Ways and Means of the House of 
                                        Representatives.
                                          ``(dd) 1 member of the Panel 
                                        shall be appointed by the 
                                        ranking minority member of the 
                                        Committee on Ways and Means of 
                                        the House of Representatives.
                                          ``(ee) 2 members of the Panel 
                                        shall be appointed by the 
                                        Chairman of the Committee on 
                                        Finance of the Senate.
                                          ``(ff) 1 member of the Panel 
                                        shall be appointed by the 
                                        ranking minority member of the 
                                        Committee on Finance of the 
                                        Senate.
                                  ``(II) Conflicts of interest.--An 
                                individual shall not be eligible to 
                                serve on the Panel if such service 
                                would pose a conflict of interest for 
                                the individual.
                                  ``(III) Timing of appointments.--The 
                                appointment of members to the Panel 
                                shall be completed not later than March 
                                1, 2001.
                          ``(iii) Duties.--
                                  ``(I) Review and make recommendations 
                                on project applications.--The Panel 
                                shall review all applications submitted 
                                pursuant to paragraph (1), and make 
                                recommendations to the Secretary 
                                regarding which applicants should be 
                                awarded grants under this subsection, 
                                with due regard for the provisions of 
                                paragraph (3), but shall not recommend 
                                that a project be awarded such a grant 
                                if the application describing the 
                                project does not attempt to meet the 
                                requirement of paragraph (1)(B).
                                  ``(II) Timing.--The Panel shall make 
                                such recommendations not later than 
                                September 1, 2001.
                          ``(iv) Term of office.--Each member appointed 
                        to the Panel shall serve for the life of the 
                        Panel.
                          ``(v) Prohibition on compensation.--Members 
                        of the Panel may not receive pay, allowances, 
                        or benefits by reason of their service on the 
                        Panel.
                          ``(vi) Travel expenses.--Each member of the 
                        Panel shall receive travel expenses, including 
                        per diem in lieu of subsistence, in accordance 
                        with sections 5702 and 5703 of title 5, United 
                        States Code.
                          ``(vii) Meetings.--The Panel shall meet as 
                        often as is necessary to complete the business 
                        of the Panel.
                          ``(viii) Chairperson.--The Chairperson of the 
                        Panel shall be designated by the Secretary at 
                        the time of appointment.
                          ``(ix) Staff of federal agencies.--The 
                        Secretary may detail any personnel of the 
                        Department of Health and Human Services and the 
                        Secretary of Labor may detail any personnel of 
                        the Department of Labor to the Panel to assist 
                        the Panel in carrying out its duties under this 
                        subparagraph.
                          ``(x) Obtaining official data.--The Panel may 
                        secure directly from any department or agency 
                        of the United States information necessary to 
                        enable it to carry out this subparagraph. On 
                        request of the Chairperson of the Panel, the 
                        head of the department or agency shall furnish 
                        that information to the Panel.
                          ``(xi) Mails.--The Panel may use the United 
                        States mails in the same manner and under the 
                        same conditions as other departments and 
                        agencies of the United States.
                          ``(xii) Termination.--The Panel shall 
                        terminate on September 1, 2001.
          ``(3) Matching grants.--
                  ``(A) Grant awards.--
                          ``(i) In general.--The Secretary shall award 
                        matching grants, on a competitive basis, among 
                        entities submitting applications therefor which 
                        meet the requirements of paragraph (1), in 
                        amounts that take into account the written 
                        commitments referred to in paragraph (1)(D).
                          ``(ii) Timing.--
                                  ``(I) First round.--On October 1, 
                                2000, the Secretary shall award not 
                                more than $70,000,000 in matching 
                                grants after considering the 
                                recommendations submitted pursuant to 
                                paragraph (2)(A)(iii)(I).
                                  ``(II) Second round.--On October 1, 
                                2001, the Secretary shall award not 
                                more than $70,000,000 in matching 
                                grants after considering the 
                                recommendations submitted pursuant to 
                                paragraph (2)(B)(iii)(I).
                          ``(iii) Nondiscrimination.--The provisions of 
                        this section shall be applied and administered 
                        so as to ensure that mothers, expectant 
                        mothers, and married mothers are eligible for 
                        benefits and services under projects awarded 
                        grants under this section on the same basis as 
                        fathers, expectant fathers, and married 
                        fathers.
                  ``(B) Preferences.--In determining which entities to 
                which to award grants under this subsection, the 
                Secretary shall give preference to an entity--
                          ``(i) to the extent that the application 
                        submitted by the entity describes actions that 
                        the entity will take that are designed to 
                        encourage or facilitate the payment of child 
                        support, including but not limited to--
                                  ``(I) obtaining agreements with the 
                                State in which the project will be 
                                carried out under which the State will 
                                exercise its authority under the last 
                                sentence of section 457(a)(2)(B)(iv) in 
                                every case in which such authority may 
                                be exercised;
                                  ``(II) obtaining a written commitment 
                                by the agency responsible for 
                                administering the State plan approved 
                                under part D for the State in which the 
                                project is to be carried out that the 
                                State will voluntarily cancel child 
                                support arrearages owed to the State by 
                                the father as a result of the father 
                                providing various supports to the 
                                family such as maintaining a regular 
                                child support payment schedule or 
                                living with his children; and
                                  ``(III) obtaining a written 
                                commitment by the entity that the 
                                entity will help participating fathers 
                                who cooperate with the agency in 
                                improving their credit rating;
                          ``(ii) to the extent that the application 
                        includes written agreements of cooperation with 
                        other private and governmental agencies, 
                        including the State or local program funded 
                        under this part, the local Workforce Investment 
                        Board, the State or local program funded under 
                        part D, and the State or local program funded 
                        under part E, which should include a 
                        description of the services each such agency 
                        will provide to fathers participating in the 
                        project described in the application;
                          ``(iii) to the extent that the application 
                        describes a project that will enroll a high 
                        percentage of project participants within 6 
                        months before or after the birth of the child; 
                        or
                          ``(iv) to the extent that the application 
                        sets forth clear and practical methods by which 
                        fathers will be recruited to participate in the 
                        project.
                  ``(C) Minimum percentage of recipients of grant funds 
                to be nongovernmental (including faith-based) 
                organizations.--Not less than 75 percent of the 
                entities awarded grants under this subsection in each 
                fiscal year (other than entities awarded such grants 
                pursuant to the preferences required by subparagraph 
                (B)) shall be awarded to--
                          ``(i) nongovernmental (including faith-based) 
                        organizations; or
                          ``(ii) governmental organizations that pass 
                        through to organizations referred to in clause 
                        (i) at least 50 percent of the amount of the 
                        grant.
                  ``(D) Diversity of projects.--
                          ``(i) In general.--In determining which 
                        entities to which to award grants under this 
                        subsection, the Secretary shall attempt to 
                        achieve a balance among entities of differing 
                        sizes, entities in differing geographic areas, 
                        entities in urban versus rural areas, and 
                        entities employing differing methods of 
                        achieving the purposes of this section.
                          ``(ii) Report to the congress.--Within 90 
                        days after each award of grants under subclause 
                        (I) or (II) of subparagraph (A)(ii), 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 brief 
                        report on the diversity of projectes selected 
                        to receive funds under the grant program. The 
                        report shall include a comparison of funding 
                        for projects located in urban areas, projects 
                        located in suburban areas, and projects located 
                        in rural areas.
                  ``(E) Payment of grant in 4 equal annual 
                installments.--During the fiscal year in which a grant 
                is awarded under this subsection and each of the 
                succeeding 3 fiscal years, the Secretary shall provide 
                to the entity awarded the grant an amount equal to \1/
                4\ of the amount of the grant.
          ``(4) Use of funds.--
                  ``(A) In general.--Each entity to which a grant is 
                made under this subsection shall use grant funds 
                provided under this subsection in accordance with the 
                application requesting the grant, the requirements of 
                this subsection, and the regulations prescribed under 
                this subsection, and may use the grant funds to support 
                community-wide initiatives to address the purposes of 
                this section.
                  ``(B) Nondisplacement.--
                          ``(i) In general.--An adult in a work 
                        activity described in section 407(d) which is 
                        funded, in whole or in part, by funds provided 
                        under this section shall not be employed or 
                        assigned--
                                  ``(I) when any other individual is on 
                                layoff from the same or any 
                                substantially equivalent job; or
                                  ``(II) if the employer has terminated 
                                the employment of any regular employee 
                                or otherwise caused an involuntary 
                                reduction of its workforce in order to 
                                fill the vacancy so created with such 
                                an adult.
                          ``(ii) Grievance procedure.--
                                  ``(I) In general.--Complaints 
                                alleging violations of clause (i) in a 
                                State may be resolved--
                                          ``(aa) if the State has 
                                        established a grievance 
                                        procedure under section 
                                        403(a)(5)(J)(iv), pursuant to 
                                        the grievance procedure; or
                                          ``(bb) otherwise, pursuant to 
                                        the grievance procedure 
                                        established by the State under 
                                        section 407(f)(3).
                                  ``(II) Forfeiture of grant if 
                                grievance procedure not available.--If 
                                a complaint referred to in subclause 
                                (I) is made against an entity to which 
                                a grant has been made under this 
                                section with respect to a project, and 
                                the complaint cannot be brought to, or 
                                cannot be resolved within 90 days after 
                                being brought, by a grievance procedure 
                                referred to in subclause (I), then the 
                                entity shall immediately return to the 
                                Secretary all funds provided to the 
                                entity under this section for the 
                                project, and the Secretary shall 
                                immediately rescind the grant.
                  ``(C) Rule of construction.--This section shall not 
                be construed to require the participation of a father 
                in a project funded under this section to be 
                discontinued by the project on the basis of changed 
                economic circumstances of the father.
                  ``(D) Rule of construction on marriage.--This section 
                shall not be construed to authorize the Secretary to 
                define marriage for purposes of this section.
                  ``(E) Penalty for misuse of grant funds.--If the 
                Secretary determines that an entity to which a grant is 
                made under this subsection has used any amount of the 
                grant in violation of subparagraph (A), the Secretary 
                shall require the entity to remit to the Secretary an 
                amount equal to the amount so used, plus all remaining 
                grant funds, and the entity shall thereafter be 
                ineligible for any grant under this subsection.
                  ``(F) Remittance of unused grant funds.--Each entity 
                to which a grant is awarded under this subsection shall 
                remit to the Secretary all funds paid under the grant 
                that remain at the end of the 5th fiscal year ending 
                after the initial grant award.
          ``(5) Authority of agencies to exchange information.--Each 
        agency administering a program funded under this part or a 
        State plan approved under part D may share the name, address, 
        telephone number, and identifying case number information in 
        the State program funded under this part, of fathers for 
        purposes of assisting in determining the eligibility of fathers 
        to participate in projects receiving grants under this section, 
        and in contacting fathers potentially eligible to participate 
        in the projects, subject to all applicable privacy laws.
          ``(6) Evaluation.--The Secretary, in consultation with the 
        Secretary of Labor, shall, directly or by grant, contract, or 
        interagency agreement, conduct an evaluation of projects funded 
        under this section (other than under subsection (c)(1)). The 
        evaluation shall assess, among other outcomes selected by the 
        Secretary, effects of the projects on marriage, parenting, 
        employment, earnings, and payment of child support. In 
        selecting projects for the evaluation, the Secretary should 
        include projects that, in the Secretary's judgment, are most 
        likely to impact the matters described in the purposes of this 
        section. In conducting the evaluation, random assignment should 
        be used wherever possible.
          ``(7) Regulations.--The Secretary shall prescribe such 
        regulations as may be necessary to carry out this subsection.
          ``(8) Limitation on applicability of other provisions of this 
        part.--Sections 404 through 410 shall not apply to this section 
        or to amounts paid under this section, and shall not be applied 
        to an entity solely by reason of receipt of funds pursuant to 
        this section. A project shall not be considered a State program 
        funded under this part solely by reason of receipt of funds 
        paid under this section.
          ``(9) Funding.--
                  ``(A) In general.--
                          ``(i) Interagency panels.--Of the amounts 
                        made available pursuant to section 403(a)(1)(E) 
                        to carry out this section for fiscal years 2000 
                        and 2001, a total of $150,000 shall be made 
                        available for the interagency panels 
                        established by paragraph (2) of this 
                        subsection.
                          ``(ii) Grants.--Of the amounts made available 
                        pursuant to section 403(a)(1)(E) to carry out 
                        this section, there shall be made available for 
                        grants under this subsection--
                                  ``(I) $17,500,000 for fiscal year 
                                2001;
                                  ``(II) $35,000,000 for each of fiscal 
                                years 2002 through 2004; and
                                  ``(III) $17,500,000 for fiscal year 
                                2005.
                          ``(iii) Evaluation.--Of the amounts made 
                        available pursuant to section 403(a)(1)(E) to 
                        carry out this section for fiscal years 2000 
                        through 2006, a total of $6,000,000 shall be 
                        made available for the evaluation required by 
                        paragraph (6) of this subsection.
                  ``(B) Availability.--
                          ``(i) Grant funds.--The amounts made 
                        available pursuant to subparagraph (A)(ii) 
                        shall remain available until the end of fiscal 
                        year 2005.
                          ``(ii) Evaluation funds.--The amounts made 
                        available pursuant to subparagraph (A)(iii) 
                        shall remain available until the end of fiscal 
                        year 2007.''.
  (b) Funding.--Section 403(a)(1)(E) of such Act (42 U.S.C. 
603(a)(1)(E)) is amended by inserting ``, and for fiscal years 2000 
through 2006, such sums as are necessary to carry out section 403A'' 
before the period.
  (c) Authority to States to Pass Through Child Support Arrearages 
Collected Through Tax Refund Intercept to Families Who Have Ceased to 
Receive Cash Assistance; Federal Reimbursement of State Share of Such 
Passed Through Arrearages.--Section 457(a)(2)(B)(iv) of such Act (42 
U.S.C. 657(a)(2)(B)(iv)) is amended--
          (1) by inserting ``(except the last sentence of this 
        clause)'' after ``this section''; and
          (2) by adding at the end the following: ``Notwithstanding the 
        preceding sentences of this clause, if the amount is collected 
        on behalf of a family that includes a child of a participant in 
        a project funded under section 403A and that has ceased to 
        receive cash payments under a State program funded under 
        section 403, then the State may distribute the amount collected 
        pursuant to section 464 to the family, and the aggregate of the 
        amounts otherwise required by this section to be paid by the 
        State to the Federal government shall be reduced by an amount 
        equal to the State share of the amount collected pursuant to 
        section 464 that would otherwise be retained as reimbursement 
        for assistance paid to the family.''.
  (d) Applicability of Charitable Choice Provisions of Welfare 
Reform.--Section 104 of the Personal Responsibility and Work 
Opportunity Reconciliation Act of 1996 (42 U.S.C. 604a) is amended by 
adding at the end the following:
  ``(l) Notwithstanding the preceding provisions of this section, this 
section shall apply to any entity to which funds have been provided 
under section 403A of the Social Security Act in the same manner in 
which this section applies to States, and, for purposes of this 
section, any project for which such funds are so provided shall be 
considered a program described in subsection (a)(2).''.

                       TITLE II--FATHERHOOD PRO-
                     JECTS OF NATIONAL SIGNIFICANCE

SEC. 201. FATHERHOOD PROJECTS OF NATIONAL SIGNIFICANCE.

  Section 403A of the Social Security Act, as added by title I of this 
Act, is amended by adding at the end the following:
  ``(c) Fatherhood Projects of National Significance.--
          ``(1) National clearinghouse.--The Secretary shall award a 
        $5,000,000 grant to a nationally recognized, nonprofit 
        fatherhood promotion organization with at least 4 years of 
        experience in designing and disseminating a national public 
        education campaign, including the production and successful 
        placement of television, radio, and print public service 
        announcements which promote the importance of responsible 
        fatherhood, and with at least 4 years experience providing 
        consultation and training to community-based organizations 
        interested in implementing fatherhood outreach, support, or 
        skill development programs with an emphasis on promoting 
        married fatherhood as the ideal, to--
                  ``(A) develop, promote, and distribute to interested 
                States, local governments, public agencies, and private 
                nonprofit organizations, including charitable and 
                religious organizations, a media campaign that 
                encourages the appropriate involvement of both parents 
                in the life of any child of the parents, and encourages 
                such organizations to develope or sponsor programs that 
                specifically address the issue of responsible 
                fatherhood and the advantages conferred on children by 
                marriage;
                  ``(B) develop a national clearinghouse to assist 
                States, communities, and private entities in efforts to 
                promote and support marriage and responsible fatherhood 
                by collecting, evaluating, and making available 
                (through the Internet and by other means) to all 
                interested parties, information regarding media 
                campaigns and fatherhood programs;
                  ``(C) develop and distribute materials that are for 
                use by entities described in subparagraph (A) or (B) 
                and that help young adults manage their money, develop 
                the knowledge and skills needed to promote successful 
                marriages, plan for future expenditures and 
                investments, and plan for retirement;
                  ``(D) develop and distribute materials that are for 
                use by entities described in subparagraphs (A) and (B) 
                and that list all the sources of public support for 
                education and training that are available to young 
                adults, including government spending programs as well 
                as benefits under Federal and State tax laws.
          ``(2) Multicity fatherhood projects.--
                  ``(A) In general.--The Secretary shall award a 
                $5,000,000 grant to each of 2 nationally recognized 
                nonprofit fatherhood promotion organizations which meet 
                the requirements of subparagraph (B), at least 1 of 
                which organizations meets the requirement of 
                subparagraph (C).
                  ``(B) Requirements.--The requirements of this 
                subparagraph are the following:
                          ``(i) The organization must have several 
                        years of experience in designing and conducting 
                        programs that meet the purposes described in 
                        paragraph (1).
                          ``(ii) The organization must have experience 
                        in simultaneously conducting such programs in 
                        more than 1 major metropolitan area and in 
                        coordinating such programs with local 
                        government agencies and private, nonprofit 
                        agencies, including State or local agencies 
                        responsible for conducting the program under 
                        part D and Workfore Investment Boards.
                          ``(iii) The organization must submit to the 
                        Secretary an application that meets all the 
                        conditions applicable to the organization under 
                        this section and that provides for projects to 
                        be conducted in 3 major metropolitan areas.
                  ``(C) Use of married couples to deliver services in 
                the inner city.--The requirement of this subparagraph 
                is that the organization has extensive experience in 
                using married couples to deliver program services in 
                the inner city.
          ``(3) Payment of grants in 4 equal annual installments.--
        During each of fiscal years 2002 through 2005, the Secretary 
        shall provide to each entity awarded a grant under this 
        subsection an amount equal to \1/4\ of the amount of the grant.
          ``(4) Funding.--
                  ``(A) In general.--Of the amounts made available 
                pursuant to section 403(a)(1)(E) to carry out this 
                section, $3,750,000 shall be made available for grants 
                under this subsection for each of fiscal years 2002 
                through 2005.
                  ``(B) Availability.--The amounts made available 
                pursuant to subparagraph (A) shall remain available 
                until the end of fiscal year 2005.''.

             TITLE III--WELFARE-TO-WORK PROGRAM ELIGIBILITY

SEC. 301. FLEXIBILITY IN ELIGIBILITY FOR PARTICIPATION IN WELFARE-TO-
                    WORK PROGRAM.

  (a) Hard-to-Employ Long-Term Recipients.--Section 403(a)(5)(C)(ii) of 
the Social Security Act (42 U.S.C. 603(a)(5)(C)(ii)) is amended--
          (1) by striking ``Required beneficiaries.--'' and inserting 
        ``Hard-to-employ recipients.--'';
          (2) in the matter preceding subclause (I)--
                  (A) by striking ``shall expend at least 70 percent of 
                all'' and inserting ``may expend''; and
                  (B) by striking ``, or for the benefit of 
                noncustodial parents,'';
          (3) in the matter preceding item (aa) of subclause (I)--
                  (A) by striking ``At least 2'' and inserting ``Any'';
                  (B) by striking ``apply'' and inserting ``applies''; 
                and
                  (C) by striking ``or the noncustodial parent'';
          (4) in item (aa) of subclause (I), by striking ``, and has 
        low skills in reading or mathematics'';
          (5) by adding at the end of subclause (I) the following:
                                          ``(dd) The individual has 
                                        English reading, writing, or 
                                        computing skills at or below 
                                        the 8th grade level, or limited 
                                        proficiency in written or 
                                        spoken English.
                                          ``(ee) The individual is 
                                        homeless.
                                          ``(ff) The individual has a 
                                        disability.
                                          ``(gg) The individual has 
                                        been a victim of domestic 
                                        violence.''; and
          (6) in the matter preceding item (aa) of subclause (II), by 
        striking ``or the minor children of the non-custodial parent''.
  (b) Noncustodial Parents.--
          (1) In general.--Section 403(a)(5)(C) of such Act (42 U.S.C. 
        603(a)(5)(C)) is amended--
                  (A) by redesignating clauses (iii) through (viii) as 
                clauses (iv) through (ix), respectively; and
                  (B) by inserting after clause (ii) the following:
                          ``(iii) Noncustodial parents.--An entity that 
                        operates a project with funds provided under 
                        this paragraph may use the funds to provide 
                        services in a form described in clause (i) to 
                        noncustodial parents with respect to whom the 
                        requirements of the following subclauses are 
                        met:
                                  ``(I) The noncustodial parent is 
                                unemployed, underemployed, or having 
                                difficulty in paying child support 
                                obligations.
                                  ``(II) At least 1 of the following 
                                applies to a minor child of the 
                                noncustodial parent (with preference in 
                                the determination of the noncustodial 
                                parents to be provided services under 
                                this paragraph to be provided by the 
                                entity to those noncustodial parents 
                                with minor children who meet, or who 
                                have custodial parents who meet, the 
                                requirements of item (aa)):
                                          ``(aa) The minor child or the 
                                        custodial parent of the minor 
                                        child meets the requirements of 
                                        clause (ii)(II).
                                          ``(bb) The minor child is 
                                        eligible for, or is receiving, 
                                        benefits under the program 
                                        funded under this part.
                                          ``(cc) The minor child 
                                        received benefits under the 
                                        program funded under this part 
                                        in the 12-month period 
                                        preceding the date of the 
                                        determination but no longer 
                                        receives such benefits.
                                          ``(dd) The minor child is 
                                        eligible for, or is receiving, 
                                        assistance under the Food Stamp 
                                        Act of 1977, benefits under the 
                                        supplemental security income 
                                        program under title XVI of this 
                                        Act, medical assistance under 
                                        title XIX of this Act, or child 
                                        health assistance under title 
                                        XXI of this Act.
                                  ``(III) In the case of a noncustodial 
                                parent who becomes enrolled in the 
                                project on or after the date of the 
                                enactment of this clause, the 
                                noncustodial parent is in compliance 
                                with the terms of an oral or written 
                                personal responsibility contract 
                                entered into among the noncustodial 
                                parent, the entity, and (unless the 
                                entity demonstrates to the Secretary 
                                that the entity is not capable of 
                                coordinating with such agency) the 
                                agency responsible for administering 
                                the State plan under part D, which was 
                                developed taking into account the 
                                employment and child support status of 
                                the noncustodial parent, which was 
                                entered into not later than 30 (or, at 
                                the option of the entity, not later 
                                than 90) days after the noncustodial 
                                parent was enrolled in the project, and 
                                which, at a minimum, includes the 
                                following:
                                          ``(aa) A commitment by the 
                                        noncustodial parent to 
                                        cooperate, at the earliest 
                                        opportunity, in the 
                                        establishment of the paternity 
                                        of the minor child, through 
                                        voluntary acknowledgement or 
                                        other procedures, and in the 
                                        establishment of a child 
                                        support order.
                                          ``(bb) A commitment by the 
                                        noncustodial parent to 
                                        cooperate in the payment of 
                                        child support for the minor 
                                        child, which may include a 
                                        modification of an existing 
                                        support order to take into 
                                        account the ability of the 
                                        noncustodial parent to pay such 
                                        support and the participation 
                                        of such parent in the project.
                                          ``(cc) A commitment by the 
                                        noncustodial parent to 
                                        participate in employment or 
                                        related activities that will 
                                        enable the noncustodial parent 
                                        to make regular child support 
                                        payments, and if the 
                                        noncustodial parent has not 
                                        attained 20 years of age, such 
                                        related activities may include 
                                        completion of high school, a 
                                        general equivalency degree, or 
                                        other education directly 
                                        related to employment.
                                          ``(dd) A description of the 
                                        services to be provided under 
                                        this paragraph, and a 
                                        commitment by the noncustodial 
                                        parent to participate in such 
                                        services, that are designed to 
                                        assist the noncustodial parent 
                                        obtain and retain employment, 
                                        increase earnings, and enhance 
                                        the financial and emotional 
                                        contributions to the well-being 
                                        of the minor child.
                                In order to protect custodial parents 
                                and children who may be at risk of 
                                domestic violence, the preceding 
                                provisions of this subclause shall not 
                                be construed to affect any other 
                                provision of law requiring a custodial 
                                parent to cooperate in establishing the 
                                paternity of a child or establishing or 
                                enforcing a support order with respect 
                                to a child, or entitling a custodial 
                                parent to refuse, for good cause, to 
                                provide such cooperation as a condition 
                                of assistance or benefit under any 
                                program, shall not be construed to 
                                require such cooperation by the 
                                custodial parent as a condition of 
                                participation of either parent in the 
                                program authorized under this 
                                paragraph, and shall not be construed 
                                to require a custodial parent to 
                                cooperate with or participate in any 
                                activity under this clause. The entity 
                                operating a project under this clause 
                                with funds provided under this 
                                paragraph shall consult with domestic 
                                violence prevention and intervention 
                                organizations in the development of the 
                                project.''.
          (2) Conforming amendment.--Section 412(a)(3)(C)(ii) of such 
        Act (42 U.S.C. 612(a)(3)(C)(ii)) is amended by striking 
        ``(vii)'' and inserting ``(viii)''.
  (c) Recipients With Characteristics of Long-Term Dependency; Children 
Aging Out of Foster Care.--
          (1) In general.--Subclause (II) of section 403(a)(5)(C)(iv) 
        of such Act (42 U.S.C. 603(a)(5)(C)(iv)(II)), as so 
        redesignated by subsection (b)(1)(A) of this section, is 
        amended to read as follows:
                                  ``(II) to children--
                                          ``(aa) who have attained 18 
                                        years of age but not 25 years 
                                        of age; and
                                          ``(bb) who, before attaining 
                                        18 years of age, were 
                                        recipients of foster care 
                                        maintenance payments (as 
                                        defined in section 475(4)) 
                                        under part E or were in foster 
                                        care under the responsibility 
                                        of a State.''.
          (2) Conforming amendments.--Section 403(a)(5)(C)(iv) of such 
        Act (42 U.S.C. 603(a)(5)(C)(iv)), as so redesignated by 
        subsection (b)(1)(A) of this section, is amended--
                  (A) in the heading by inserting ``hard to employ'' 
                before ``individuals''; and
                  (B) in the last sentence by striking ``clause (ii)'' 
                and inserting ``clauses (ii) and (iii) and, as 
                appropriate, clause (v)''.
  (d) Custodial Parents With Income Below Poverty Line Who Are Not on 
Welfare.--
          (1) In general.--Section 403(a)(5)(C) of such Act (42 U.S.C. 
        603(a)(5)(C)), as amended by section 301(b)(1) of this Act, is 
        amended--
                  (A) by redesignating clauses (vi) through (ix) as 
                clauses (vii) through (x), respectively; and
                  (B) by inserting after clause (v) the following:
                          ``(vi) Custodial parents with income below 
                        poverty line who are not on welfare.--An entity 
                        that operates a project with funds provided 
                        under this paragraph may use the funds to 
                        provide assistance in a form described in 
                        clause (i) to custodial parents--
                                  ``(I) whose income is less than 100 
                                percent of the poverty line (as defined 
                                in section 673(2) of the Omnibus Budget 
                                Reconciliation Act of 1981, including 
                                any revision required by such section, 
                                applicable to a family of the size 
                                involved); and
                                  ``(II) who are not otherwise 
                                recipients of assistance under a State 
                                program funded under this part.''.
          (2) Conforming amendments.--
                  (A) Section 403(a)(5)(C)(iv) of such Act (42 U.S.C. 
                603(a)(5)(C)(iv)), as so redesignated by subsection 
                (b)(1)(A) of this section, and as amended by subsection 
                (c)(2) of this section, is amended in the last sentence 
                by striking ``clause (v)'' and inserting ``clauses (v) 
                and (vi)''.
                  (B) Section 412(a)(3)(C)(ii) of such Act (42 U.S.C. 
                612(a)(3)(C)(ii)), as amended by subsection (b)(2) of 
                this section, is amended by striking ``(viii)'' and 
                inserting ``(ix)''.

SEC. 302. LIMITED VOCATIONAL EDUCATIONAL TRAINING INCLUDED AS ALLOWABLE 
                    ACTIVITY.

  Section 403(a)(5)(C)(i) of the Social Security Act (42 U.S.C. 
603(a)(5)(C)(i)) is amended by inserting after subclause (VI) the 
following:
                                  ``(VII) Not more than 6 months of 
                                vocational educational training.''.

SEC. 303. CERTAIN GRANTEES AUTHORIZED TO PROVIDE EMPLOYMENT SERVICES 
                    DIRECTLY.

  Section 403(a)(5)(C)(i)(IV) of the Social Security Act (42 U.S.C. 
603(a)95)(C)(i)(IV)) is amended by inserting ``, or if the entity is 
not a private industry council or workforce investment board, the 
direct provision of such services'' before the period.

SEC. 304. SIMPLIFICATION AND COORDINATION OF REPORTING REQUIREMENTS.

  (a) Elimination of Current Requirements.--Section 411(a)(1)(A) of the 
Social Security Act (42 U.S.C. 611(a)(1)(A)) is amended--
          (1) in the matter preceding clause (i), by inserting 
        ``(except for information relating to activities carried out 
        under section 403(a)(5))'' after ``part''; and
          (2) by striking clause (xviii).
  (b) Establishment of Reporting Requirement.--Section 403(a)(5)(C) of 
the Social Security Act (42 U.S.C. 603(a)(5)(C)), as amended by 
subsections (b)(1) and (d)(1) of section 301 of this Act, is amended by 
adding at the end the following:
                          ``(xi) Reporting requirements.--The Secretary 
                        of Labor, in consultation with the Secretary of 
                        Health and Human Services, States, and 
                        organizations that represent State or local 
                        governments, shall establish requirements for 
                        the collection and maintenance of financial and 
                        participant information and the reporting of 
                        such information by entities carrying out 
                        activities under this paragraph.''.

SEC. 305. USE OF STATE INFORMATION TO AID ADMINISTRATION OF WELFARE-TO-
                    WORK GRANT FUNDS.

  (a) Authority of State Agencies to Disclose to Private Industry 
Councils the Names, Addressess, and Telephone Numbers of Potential 
Welfare-to-Work Program Participants.--
          (1) State iv-d agencies.--Section 454A(f) of the Social 
        Security Act (42 U.S.C. 654a(f)) is amended by adding at the 
        end the following:
          ``(5) Private industry councils receiving welfare-to-work 
        grants.--Disclosing to a private industry council (as defined 
        in section 403(a)(5)(D)(ii)) to which funds are provided under 
        section 403(a)(5) the names, addresses, telephone numbers, and 
        identifying case number information in the State program funded 
        under part A, of noncustodial parents residing in the service 
        delivery area of the private industry council, for the purpose 
        of identifying and contacting noncustodial parents regarding 
        participation in the program under section 403(a)(5).''.
          (2) State tanf agencies.--Section 403(a)(5) of such Act (42 
        U.S.C. 603(a)(5)) is amended by adding at the end the 
        following:
                  ``(K) Information disclosure.--If a State to which a 
                grant is made under section 403 establishes safeguards 
                against the use or disclosure of information about 
                applicants or recipients of assistance under the State 
                program funded under this part, the safeguards shall 
                not prevent the State agency administering the program 
                from furnishing to a private industry council the 
                names, addresses, telephone numbers, and identifying 
                case number information in the State program funded 
                under this part, of noncustodial parents residing in 
                the service delivery area of the private industry 
                council, for the purpose of identifying and contacting 
                noncustodial parents regarding participation in the 
                program under this paragraph.''.
  (b) Safeguarding of Information Disclosed to Private Industry 
Councils.--Section 403(a)(5)(A)(ii)(I) of such Act (42 U.S.C. 
603(a)(5)(A)(ii)(I)) is amended--
          (1) by striking ``and'' at the end of item (dd);
          (2) by striking the period at the end of item (ee) and 
        inserting ``; and''; and
          (3) by adding at the end the following:
                                          ``(ff) describes how the 
                                        State will ensure that a 
                                        private industry council to 
                                        which information is disclosed 
                                        pursuant to section 
                                        403(a)(5)(K) or 454A(f)(5) has 
                                        procedures for safeguarding the 
                                        information and for ensuring 
                                        that the information is used 
                                        solely for the purpose 
                                        described in that section.''.

TITLE IV--ALTERNATIVE PENALTY PROCEDURE RELATING TO STATE DISBURSEMENT 
                                 UNITS

SEC. 401. ALTERNATIVE PENALTY PROCEDURE RELATING TO STATE DISBURSEMENT 
                    UNITS.

  (a) In General.--Section 455(a) of the Social Security Act (42 U.S.C. 
655(a)) is amended by adding at the end the following:
  ``(5)(A)(i) If--
          ``(I) the Secretary determines that a State plan under 
        section 454 would (in the absence of this paragraph) be 
        disapproved for the failure of the State to comply with 
        subparagraphs (A) and (B)(i) of section 454(27), and that the 
        State has made and is continuing to make a good faith effort to 
        so comply; and
          ``(II) the State has submitted to the Secretary, not later 
        than April 1, 2000, a corrective compliance plan that describes 
        how, by when, and at what cost the State will achieve such 
        compliance, which has been approved by the Secretary,
then the Secretary shall not disapprove the State plan under section 
454, and the Secretary shall reduce the amount otherwise payable to the 
State under paragraph (1)(A) of this subsection for the fiscal year by 
the penalty amount.
  ``(ii) All failures of a State during a fiscal year to comply with 
any of the requirements of section 454B shall be considered a single 
failure of the State to comply with subparagraphs (A) and (B)(i) of 
section 454(27) during the fiscal year for purposes of this paragraph.
  ``(B) In this paragraph:
          ``(i) The term `penalty amount' means, with respect to a 
        failure of a State to comply with subparagraphs (A) and (B)(i) 
        of section 454(27)--
                  ``(I) 4 percent of the penalty base, in the case of 
                the 1st fiscal year in which such a failure by the 
                State occurs (regardless of whether a penalty is 
                imposed in that fiscal year under this paragraph with 
                respect to the failure), except as provided in 
                subparagraph (C)(ii) of this paragraph;
                  ``(II) 8 percent of the penalty base, in the case of 
                the 2nd such fiscal year;
                  ``(III) 16 percent of the penalty base, in the case 
                of the 3rd such fiscal year;
                  ``(IV) 25 percent of the penalty base, in the case of 
                the 4th such fiscal year; or
                  ``(V) 30 percent of the penalty base, in the case of 
                the 5th or any subsequent such fiscal year.
          ``(ii) The term `penalty base' means, with respect to a 
        failure of a State to comply with subparagraphs (A) and (B)(i) 
        of section 454(27) during a fiscal year, the amount otherwise 
        payable to the State under paragraph (1)(A) of this subsection 
        for the preceding fiscal year.
  ``(C)(i) The Secretary shall waive all penalties imposed against a 
State under this paragraph for any failure of the State to comply with 
subparagraphs (A) and (B)(i) of section 454(27) if the Secretary 
determines that, before April 1, 2000, the State has achieved such 
compliance.
  ``(ii) If a State with respect to which a reduction is required to be 
made under this paragraph with respect to a failure to comply with 
subparagraphs (A) and (B)(i) of section 454(27) achieves such 
compliance on or after April 1, 2000, and on or before September 30, 
2000, then the penalty amount applicable to the State shall be 1 
percent of the penalty base with respect to the failure involved.
  ``(D) The Secretary may not impose a penalty under this paragraph 
against a State for a fiscal year for which the amount otherwise 
payable to the State under paragraph (1)(A) of this subsection is 
reduced under paragraph (4) of this subsection for failure to comply 
with section 454(24)(A).''.
  (b) Inapplicability of Penalty Under TANF Program.--Section 
409(a)(8)(A)(i)(III) of such Act (42 U.S.C. 609(a)(8)(A)(i)(III)) is 
amended by striking ``section 454(24)'' and inserting ``paragraph (24), 
or subparagraph (A) or (B)(i) of paragraph (27), of section 454''.
  (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 1999.

                     TITLE V--FINANCING PROVISIONS

SEC. 501. USE OF NEW HIRE INFORMATION TO ASSIST IN COLLECTION OF 
                    DEFAULTED STUDENT LOANS AND GRANTS.

  (a) In General.--Section 453(j) of the Social Security Act (42 U.S.C. 
653(j)) is amended by adding at the end the following:
          ``(6) Information comparisons and disclosure for enforcement 
        of obligations on higher education act loans and grants.--
                  ``(A) Furnishing of information by the secretary of 
                education.--The Secretary of Education shall furnish to 
                the Secretary, on a quarterly basis or at such less 
                frequent intervals as may be determined by the 
                Secretary of Education, information in the custody of 
                the Secretary of Education for comparison with 
                information in the National Directory of New Hires, in 
                order to obtain the information in such directory with 
                respect to individuals who--
                          ``(i) are borrowers of loans made under title 
                        IV of the Higher Education Act of 1965 that are 
                        in default; or
                          ``(ii) owe an obligation to refund an 
                        overpayment of a grant awarded under such 
                        title.
                  ``(B) Requirement to seek minimum information 
                necessary.--The Secretary of Education shall seek 
                information pursuant to this section only to the extent 
                essential to improving collection of the debt described 
                in subparagraph (A).
                  ``(C) Duties of the secretary.--
                          ``(i) Information comparison; disclosure to 
                        the secretary of education.--The Secretary, in 
                        cooperation with the Secretary of Education, 
                        shall compare information in the National 
                        Directory of New Hires with information in the 
                        custody of the Secretary of Education, and 
                        disclose information in that Directory to the 
                        Secretary of Education, in accordance with this 
                        paragraph, for the purposes specified in this 
                        paragraph.
                          ``(ii) Condition on disclosure.--The 
                        Secretary shall make disclosures in accordance 
                        with clause (i) only to the extent that the 
                        Secretary determines that such disclosures do 
                        not interfere with the effective operation of 
                        the program under this part. Support collection 
                        under section 466(b) shall be given priority 
                        over collection of any defaulted student loan 
                        or grant overpayment against the same income.
                  ``(D) Use of information by the secretary of 
                education.--The Secretary of Education may use 
                information resulting from a data match pursuant to 
                this paragraph only--
                          ``(i) for the purpose of collection of the 
                        debt described in subparagraph (A) owed by an 
                        individual whose annualized wage level 
                        (determined by taking into consideration 
                        information from the National Directory of 
                        New Hires) exceeds $16,000; and
                          ``(ii) after removal of personal identifiers, 
                        to conduct analyses of student loan defaults.
                  ``(E) Disclosure of information by the secretary of 
                education.--
                          ``(i) Disclosures permitted.--The Secretary 
                        of Education may disclose information resulting 
                        from a data match pursuant to this paragraph 
                        only to--
                                  ``(I) a guaranty agency holding a 
                                loan made under part B of title IV of 
                                the Higher Education Act of 1965 on 
                                which the individual is obligated;
                                  ``(II) a contractor or agent of the 
                                guaranty agency described in subclause 
                                (I);
                                  ``(III) a contractor or agent of the 
                                Secretary; and
                                  ``(IV) the Attorney General.
                          ``(ii) Purpose of disclosure.--The Secretary 
                        of Education may make a disclosure under clause 
                        (i) only for the purpose of collection of the 
                        debts owed on defaulted student loans, or 
                        overpayments of grants, made under title IV of 
                        the Higher Education Act of 1965.
                          ``(iii) Restriction on redisclosure.--An 
                        entity to which information is disclosed under 
                        clause (i) may use or disclose such information 
                        only as needed for the purpose of collecting on 
                        defaulted student loans, or overpayments of 
                        grants, made under title IV of the Higher 
                        Education Act of 1965.
                  ``(F) Reimbursement of hhs costs.--The Secretary of 
                Education shall reimburse the Secretary, in accordance 
                with subsection (k)(3), for the additional costs 
                incurred by the Secretary in furnishing the information 
                requested under this subparagraph.''.
  (b) Penalties for Misuse of Information.--Section 402(a) of the Child 
Support Performance and Incentive Act of 1998 (112 Stat. 669) is 
amended in the matter added by paragraph (2) by inserting ``or any 
other person'' after ``officer or employee of the United States''.
  (c) Effective Date.--The amendments made by this section shall become 
effective October 1, 1999.

SEC. 502. ELIMINATION OF SET-ASIDE OF PORTION OF WELFARE-TO-WORK FUNDS 
                    FOR SUCCESSFUL PERFORMANCE BONUS.

  (a) In General.--Section 403(a)(5) of the Social Security Act (42 
U.S.C. 603(a)(5)) is amended by striking subparagraph (E) and 
redesignating subparagraphs (F) through (K) (as added by section 
305(a)(2) of this Act) as subparagraphs (E) through (J), respectively.
  (b) Conforming Amendments.--
          (1) Section 403(a)(5)(A)(i) of such Act (42 U.S.C. 
        603(a)(5)(A)(i)) is amended by striking ``subparagraph (I)'' 
        and inserting ``subparagraph (H)''.
          (2) Subclause (I) of each of subparagraphs (A)(iv) and (B)(v) 
        of section 403(a)(5) of such Act (42 U.S.C. 603(a)(5)(A)(iv)(I) 
        and (B)(v)(I)) is amended--
                  (A) in item (aa)--
                          (i) by striking ``(I)'' and inserting 
                        ``(H)''; and
                          (ii) by striking ``(G), and (H)'' and 
                        inserting ``and (G)''; and
                  (B) in item (bb), by striking ``(F)'' and inserting 
                ``(E)''.
          (3) Section 403(a)(5)(B)(v) of such Act (42 U.S.C. 
        603(a)(5)(B)) is amended in the matter preceding subclause (I) 
        by striking ``(I)'' and inserting ``(H)''.
          (4) Subparagraphs (E) and (F) of section 403(a)(5) of such 
        Act (42 U.S.C. 603(a)(5)(F) and (G)), as so redesignated by 
        subsection (a) of this section, are each amended by striking 
        ``(I)'' and inserting ``(H)''.
          (5) Section 412(a)(3)(A) of such Act (42 U.S.C. 612(a)(3)(A)) 
        is amended by striking ``403(a)(5)(I)'' and inserting 
        ``403(a)(5)(H)''.
  (c) Funding Amendment.--Section 403(a)(5)(H)(i) of such Act (42 
U.S.C. 603(a)(5)(H)(i)), as so redesignated by subsection (a) of this 
section, is amended by striking ``$1,500,000,000'' and all that follows 
and inserting ``for grants under this paragraph--
                                  ``(I) $1,500,000,000 for fiscal year 
                                1998; and
                                  ``(II) $1,400,000,000 for fiscal year 
                                1999.''.

                        TITLE VI--MISCELLANEOUS

SEC. 601. CHANGE DATES FOR EVALUATION.

  (a) In General.--Section 403(a)(5)(G)(iii) of the Social Security Act 
(42 U.S.C. 603(a)(5)(G)(iii)), as so redesignated by section 502(a) of 
this Act, is amended by striking ``2001'' and inserting ``2005''.
  (b) Interim Report Required.--Section 403(a)(5)(G) of such Act (42 
U.S.C. 603(a)(5)(G)), as so redesignated, is amended by adding at the 
end the following:
                          ``(iv) Interim report.--Not later than 
                        January 1, 2002, the Secretary shall submit to 
                        the Congress a interim report on the 
                        evaluations referred to in clause (i).''.

SEC. 602. REPORT ON UNDISTRIBUTED CHILD SUPPORT PAYMENTS.

  Not later than 6 months after the date of the enactment of this Act, 
the Secretary of Health and Human Services shall submit to the 
Committee on Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate a report on the procedures that the 
States use generally to locate custodial parents for whom child support 
has been collected but not yet distributed due to a change in address. 
The report shall include an estimate of the total amount of such 
undistributed child support and the average length of time it takes for 
such child support to be distributed. The Secretary shall include in 
the report recommendations as to whether additional procedures should 
be established at the State or Federal level to expedite the payment of 
undistributed child support.

SEC. 603. SENSE OF THE CONGRESS.

  It is the sense of the Congress that the States may use funds 
provided under the program of block grants for temporary assistance for 
needy families under part A of title IV of the Social Security Act to 
promote fatherhood activities of the type described in section 403A of 
such Act, as added by this Act.

SEC. 604. ADDITIONAL FUNDING FOR WELFARE EVALUATION STUDY.

  Section 414(b) of the Social Security Act (42 U.S.C. 614(b)) is 
amended by striking ``appropriated $10,000,000'' and all that follows 
and inserting ``appropriated--
          ``(1) $10,000,000 for each of fiscal years 1996 through 1999;
          ``(2) $12,300,000 for fiscal year 2000;
          ``(3) $17,500,000 for fiscal year 2001;
          ``(4) $15,500,000 for fiscal year 2002; and
          ``(5) $4,000,000 for fiscal year 2003.''.

SEC. 605. TRAINING IN CHILD ABUSE AND NEGLECT PROCEEDINGS.

  (a) In General--Section 474(a)(3) of the Social Security Act (42 
U.S.C. 674(a)(3)) is amended--
          (1) by redesignating subparagraphs (C), (D), and (E) as 
        subparagraphs (D), (E), and (F), respectively; and
          (2) by inserting after subparagraph (B) the following:
                  ``(C) 75 percent of so much of such expenditures as 
                are for the short-term training (including cross-
                training with personnel employed by, or under contract 
                with, the State or local agency administering the plan 
                in the political subdivision, training on topics 
                relevant to the legal representation of clients in 
                proceedings conducted by or under the supervision of an 
                abuse and neglect court, and training on related topics 
                such as child development and the importance of 
                achieving safety, permanency, and well-being for a 
                child) of judges, judicial personnel, law enforcement 
                personnel, agency attorneys, attorneys representing a 
                parent in proceedings conducted by, or under the 
                supervision of, an abuse and neglect court, attorneys 
                representing a child in such proceedings, guardians ad 
                litem, and volunteers who participate in court-
                appointed special advocate programs, to the extent the 
                training is related to the court's role in expediting 
                adoption procedures, implementing reasonable efforts, 
                and providing for timely permanency planning and case 
                reviews, except that any such training shall be offered 
                by the State or local agency administering the plan, 
                either directly or through contract, in collaboration 
                with the appropriate judicial governing body operating 
                in the State,''.
  (b) Definitions.--Section 475 of such Act (42 U.S.C. 675) is amended 
by adding at the end the following:
          ``(8) The term `abuse and neglect courts' means the State and 
        local courts that carry out State or local laws requiring 
        proceedings (conducted by or under the supervision of the 
        courts)--
                  ``(A) that implement part B or this part, including 
                preliminary disposition of such proceedings;
                  ``(B) that determine whether a child was abused or 
                neglected;
                  ``(C) that determine the advisability or 
                appropriateness of placement in a family foster home, 
                group home, or a special residential care facility; or
                  ``(D) that determine any other legal disposition of a 
                child in the abuse and neglect court system.
          ``(9) The term `agency attorney' means an attorney or other 
        individual, including any government attorney, district 
        attorney, attorney general, State attorney, county attorney, 
        city solicitor or attorney, corporation counsel, or privately 
        retained special prosecutor, who represents the State or local 
        agency administrating the programs under part B and this part 
        in a proceeding conducted by, or under the supervision of, an 
        abuse and neglect court, including a proceeding for termination 
        of parental rights.
          ``(10) The term `attorney representing a child' means an 
        attorney or a guardian ad litem who represents a child in a 
        proceeding conducted by, or under the supervision of, an abuse 
        and neglect court.
          ``(11) The term `attorney representing a parent' means an 
        attorney who represents a parent who is an official party to a 
        proceeding conducted by, or under the supervision of, an abuse 
        and neglect court.''.
  (c) Conforming Amendments--
          (1) Section 473(a)(6)(B) of such Act (42 U.S.C. 673(a)(6)(B)) 
        is amended by striking ``474(a)(3)(E)'' and inserting 
        ``474(a)(3)(F)''.
          (2) Section 474(a)(3)(E) of such Act (42 U.S.C. 674(a)(3)(E)) 
        (as so redesignated by subsection (a)(1)(A) of this section) is 
        amended by striking ``subparagraph (C)'' and inserting 
        ``subparagraph (D)''.
          (3) Section 474(c) of such Act (42 U.S.C. 674(c)) is amended 
        by striking ``subsection (a)(3)(C)'' and inserting ``subsection 
        (a)(3)(D)''.
  (d) Sunset.--Effective on October 1, 2004--
          (1) section 474(a)(3) of the Social Security Act (42 U.S.C. 
        674(a)(3)) is amended by striking subparagraph (C) and 
        redesignating subparagraphs (D), (E), and (F) as subparagraphs 
        (C), (D), and (E), respectively;
          (2) section 475 of such Act (42 U.S.C. 675) is amended by 
        striking paragraphs (8) through (11);
          (3) section 473(a)(6)(B) of such Act (42 U.S.C. 673(a)(6)(B)) 
        is amended by striking ``474(a)(3)(F)'' and inserting 
        ``474(a)(3)(E)''.
          (4) section 474(a)(3)(E) of such Act (42 U.S.C. 674(a)(3)(E)) 
        (as so redesignated by subsection (a)(1)(A) of this section) is 
        amended by striking ``subparagraph (D)'' and inserting 
        ``subparagraph (C)''; and
          (5) section 474(c) of such Act (42 U.S.C. 674(c)) is amended 
        by striking ``subsection (a)(3)(D)'' and inserting ``subsection 
        (a)(3)(C)''.

SEC. 606. USE OF NEW HIRE INFORMATION TO ASSIST IN ADMINISTRATION OF 
                    UNEMPLOYMENT COMPENSATION PROGRAMS.

  (a) In General.--Section 453(j) of the Social Security Act (42 U.S.C. 
653(j)), as amended by section 501(a) of this Act, is further amended 
by adding at the end the following:
          ``(7) Information comparisons and disclosure to assist in 
        administration of unemployment compensation programs.--
                  ``(A) In general.--If a State agency responsible for 
                the administration of an unemployment compensation 
                program under Federal or State law transmits to the 
                Secretary the name and social security account number 
                of an individual, the Secretary shall, if the 
                information in the National Directory of New Hires 
                indicates that the individual may be employed, disclose 
                to the State agency the name and address of any 
                putative employer of the individual, subject to this 
                paragraph.
                  ``(B) Condition on disclosure.--The Secretary shall 
                make a disclosure under subparagraph (A) only to the 
                extent that the Secretary determines that the 
                disclosure would not interfere with the effective 
                operation of the program under this part.
                  ``(C) Use of information.--A State agency may use 
                information provided under this paragraph only for 
                purposes of administering a program referred to in 
                subparagraph (A).''.
  (b) Effective Date.--The amendment made by subsection (a) shall take 
effect on October 1, 1999.

SEC. 607. IMMIGRATION PROVISIONS.

  (a) Aliens Ineligible to Receive Visas and Excluded From Admission 
for Nonpayment of Child Support.--
          (1) In general.--Section 212(a)(10) of the Immigration and 
        Nationality Act (8 U.S.C. 1182(a)(10)) is amended by adding at 
        the end the following:
                  ``(F) Nonpayment of child support.--
                          ``(i) In general.--Any alien is inadmissible 
                        who is legally obligated under a judgment, 
                        decree, or order to pay child support (as 
                        defined in section 459(i) of the Social 
                        Security Act), and whose failure to pay such 
                        child support has resulted in an arrearage 
                        exceeding $5,000, until child support payments 
                        under the judgment, decree, or order are 
                        satisfied or the alien is in compliance with an 
                        approved payment agreement.
                          ``(ii) Waiver authorized.--The Attorney 
                        General may waive the application of clause (i) 
                        in the case of an alien, if the Attorney 
                        General--
                                  ``(I) has received a request for the 
                                waiver from the court or administrative 
                                agency having jurisdiction over the 
                                judgment, decree, or order obligating 
                                the alien to pay child support that is 
                                referred to in such clause; or
                                  ``(II) determines that there are 
                                prevailing humanitarian or public 
                                interest concerns.''.
          (2) Effective date.--The amendment made by this subsection 
        shall take effect 180 days after the date of the enactment of 
        this Act.
  (b) Authorization To Serve Legal Process in Child Support Cases on 
Certain Arriving Aliens.--
          (1) In general.--Section 235(d) of the Immigration and 
        Nationality Act (8 U.S.C. 1225(d)) is amended by adding at the 
        end the following:
          ``(5) Authority to serve process in child support cases.--
                  ``(A) In general.--To the extent consistent with 
                State law, immigration officers are authorized to serve 
                on any alien who is an applicant for admission to the 
                United States legal process with respect to any action 
                to enforce or establish a legal obligation of an 
                individual to pay child support (as defined in section 
                459(i) of the Social Security Act).
                  ``(B) Definition.--For purposes of subparagraph (A), 
                the term `legal process' means any writ, order, summons 
                or other similar process, which is issued by--
                          ``(i) a court or an administrative agency of 
                        competent jurisdiction in any State, territory, 
                        or possession of the United States; or
                          ``(ii) an authorized official pursuant to an 
                        order of such a court or agency or pursuant to 
                        State or local law.''.
          (2) Effective date.--The amendment made by this subsection 
        shall apply to aliens applying for admission to the United 
        States on or after 180 days after the date of the enactment of 
        this Act.
  (c) Authorization To Share Child Support Enforcement Information To 
Enforce Immigration and Naturalization Law.--
          (1) Secretarial responsibility.--Section 452 of the Social 
        Security Act (42 U.S.C. 652) is amended by adding at the end 
        the following:
  ``(m) If the Secretary receives a certification by a State agency, in 
accordance with section 454(32), that an individual who is a 
nonimmigrant alien owes arrearages of child support in an amount 
exceeding $5,000, the Secretary may, at the request of the State 
agency, the Secretary of State, or the Attorney General, or on the 
Secretary's own initiative, provide such certification to the Secretary 
of State and the Attorney General information in order to enable them 
to carry out their responsibilities under sections 212(a)(10) and 
235(d) of the Immigration and Nationality Act.''.
          (2) State agency responsibility.--Section 454 of the Social 
        Security Act (42 U.S.C. 654) is amended--
                  (A) by striking ``and'' at the end of paragraph (32);
                  (B) by striking the period at the end of paragraph 
                (33) and inserting ``; and''; and
                  (C) by inserting after paragraph (33) the following:
          ``(34) provide that the State agency will have in effect a 
        procedure for certifying to the Secretary, in such format and 
        accompained by such supporting documentation as the Secretary 
        may require, determinations for purposes of section 452(m) that 
        nonimmigrant aliens owe arrearages of child support in an 
        amount exceeding $5,000.''.

                            I. INTRODUCTION


                          A. Purpose and Scope

    The Fathers Count Act of 1999 is designed to prevent 
children from being reared in fatherless families by supporting 
projects that help fathers meet their responsibilities as 
husbands, parents, and providers. The bill is aimed at 
promoting marriage among parents, helping poor and low-income 
fathers establish positive relationships with their children 
and the children's mothers, promoting responsible parenting 
including the payment of child support, and increasing family 
income by strengthening the father's earning power. The 
legislation aims to accomplish these goals by awarding grants 
to governmental and nongovernmental organizations that apply to 
the Secretary of the Department of Health and Human Services; 
grants will be awarded on a competitive basis. The legislation 
reserves 75 percent of its grant funds for nongovernmental, 
especially community-based, organizations.
    Preference is given to projects that promote payment of 
child support, coordinate with other public and private 
agencies, enroll a high percentage of recipients near the time 
of the child's birth, and explain in detail how fathers will be 
recruited.
    The bill also expands eligibility for services under the 
Welfare-to-Work program, provides a new penalty procedure for 
States that fail to meet the October 1, 1999 deadline for 
establishing a State Disbursement Unit in their Child Support 
Enforcement program, provides for new uses of the New Hire 
Directory in the Child Support Enforcement program to reduce 
fraud, eliminates the performance bonus in the Welfare-to-Work 
program, provides additional funding for a major study of the 
effects of the 1996 welfare reform law (P.L. 104-193), and 
expands training funds for court personnel in the child 
protection program funded under Title IV-E of the Social 
Security Act.

                 B. Background and Need for Legislation

    The results of the 1996 welfare reform law (P.L. 104-193), 
which originated in this Committee, have been encouraging. The 
combination of the welfare reform law, recent increases in the 
Earned Income Credit, and a strong economy has led to a decline 
in the welfare rolls, increased employment of poor and low-
income mothers, and reduced child poverty.
    However, much remains to be done. As stated clearly in the 
purpose section of the 1996 reform legislation, increasing the 
number and percentage of American children living in two-parent 
families is vital if the nation is to make serious and 
permanent progress against poverty. Thus, public policy should 
aim to reduce the number of nonmarital births, promote 
marriage, and increase the employment prospects of low-income 
fathers.
    So far, the goal of increasing personal responsibility by 
emphasizing more work and fewer births outside marriage has 
focused almost entirely on mothers. But single parenting, in 
addition to being associated with a very difficult and 
stressful family life, will inevitably produce lots of 
financial hardship. Even with the impressive array of work 
services and income supplements that have increased 
dramatically in recent years, a significant fraction of single 
parent families will always face economic hardship. Moreover, a 
large and growing body of scientific research, which has been 
summarized by numerous witnesses at our hearings, shows that 
children reared in single-parent families are less likely to 
perform well in school, less likely to graduate, more likely to 
commit crimes, more likely to have children outside marriage, 
and more likely to be on welfare as adults than children reared 
in two-parent families.
    Thus, the Committee is now following the 1996 reforms with 
its next major step in creating a set of policies and programs 
aimed at reducing poverty and increasing child well being. More 
specifically, the Committee hopes by this legislation to 
increase marriage, improve parenting, and increase the income 
of fathers. To achieve these goals, we want to encourage 
governmental and nongovernmental, including faith based, 
organizations to develop programs that help fathers 
significantly improve their contribution to family life by 
helping them improve their relations with their children and 
the children's mothers and by increasing their employment and 
earnings. Over the next six years, this legislation would fund 
a host of demonstration programs that would develop projects 
aimed at helping fathers in these ways. By carefully evaluating 
these new projects, we hope to learn how to design and 
implement effective programs for fathers and their families.
    This legislation also addresses several additional 
problems. One of the most important of these is that States and 
localities have been unable to fully implement the 1997 
Welfare-to-Work legislation. The goal of this legislation was 
to provide work programs for the most disadvantaged and least 
job-readyadults--including both mothers and fathers--whose 
children are on welfare. Thus, Congress drafted a very restrictive 
definition of eligibility for Welfare-to-Work benefits. So restrictive, 
in fact, that program operators have had great difficulty finding 
people qualified for the program. To correct this problem, the 
Committee bill loosens the definition of who is eligible for Welfare-
to-Work services while still retaining the focus on the most 
disadvantaged and least job-ready.
    Another important problem addressed by this legislation is 
that several States now face a devastating penalty for failing 
to meet Federal requirements in their Child Support Enforcement 
program. When this penalty--the complete loss of Federal funds 
in both the Child Support Enforcement and Temporary Assistance 
for Needy Families programs--was enacted by Congress, it was 
thought that only States that were willfully defying Federal 
requirements would face the penalty. But just as was the case 
last year when the Committee enacted legislation to prevent the 
imposition of this strong penalty against several States that 
had failed to build effective automatic data processing systems 
in their child support program, we once again face a choice of 
whether to allow States to be hit by such a penalty. Now at 
least eight States appear to have failed to develop a State 
Disbursement Unit (SDU) to collect and distribute child support 
payments by October 1, 1999 as required by Federal law. Our 
hearings have shown that these States appear to be making a 
good faith effort to implement their SDU and that most will be 
able to do so within the next several months. Hence, this 
legislation provides an alternative penalty that will maintain 
the incentive for States to finish their SDUs as soon as 
possible while avoiding the crisis that would occur if all 
Federal funds were cut in both the child support and cash 
welfare programs.

                         C. Legislative History


Committee bill

    The Fathers Count Act of 1999, as written by Chairman Nancy 
Johnson and Ranking Member Ben Cardin, was considered by the 
Subcommittee on Human Resources and ordered favorably reported 
to the full Committee, as amended, on October 13, 1999 by a 
voice vote, with a quorum present. The bill was then introduced 
on October 14, 1999, as H.R. 3073, by Chairman Nancy Johnson 
and Ranking Member Cardin. The full Committee on Ways and Means 
considered the Subcommittee reported bill on October 21, 1999 
and ordered it favorably reported, as amended, on Thursday, 
October 21, 1999, by voice vote.

Legislative hearings

    The Subcommittee on Human Resources held a hearing on 
October 5, 1999, to receive comments on the Fathers Count Act 
of 1999 (later introduced as H.R. 3073), the bipartisan 
legislation written by Chairman Nancy Johnson and Ranking 
Member Cardin. Testimony at the hearing was presented by 
scholars, program administrators, foundation executives, and 
Members of the U.S. House of Representatives and the U.S. 
Senate. The Subcommittee also conducted hearings on April 27, 
1999 and July 30, 1998 on fatherhood programs, which included 
testimony from the Administration, researchers, advocates, 
individuals who have designed and conducted programs for low-
income fathers, and young fathers whose children are on 
welfare.

                     II. EXPLANATION OF PROVISIONS


                          Sec. 1. Short Title

Present law

    No provision.

Explanation of provision

    This Act may be cited as the ``Fathers Count Act of 1999''.

Reason for change

    Not applicable.

                   Title I. Fatherhood Grant Program


                      Sec. 101. Fatherhood Grants

Present law

    No provision.

Explanation of provision

    The Fatherhood Grant Programs would be added as Sec. 403A 
of the Social Security Act.

Reason for change

    Based on extensive information, including testimony 
presented to the Subcommittee on Human Resources in three 
hearings over a 2-year period, a major reason for poverty in 
the United States is the rise of single-parent families, 
especially those created by nonmarital births. In addition, 
research presented in our hearings shows that marriage is good 
for both adults and children. While the Committee lauds the 
hard work of single parents in raising their children, we 
recognize that research suggests that children reared in such 
families are more likely to fail in school, be arrested, have 
children outside marriage, and go on welfare themselves than 
children reared in two-parent families. Thus,programs that work 
directly with poor fathers and that emphasize marriage, parenting, and 
employment may be able to have an impact on both the number of children 
being reared in single-parent families and, where marriage is not a 
possibility, to strengthen the relationship between single fathers and 
their children, including through the payment of child support. In 
drafting this legislation, the Committee also is aware that the welfare 
reform legislation of 1996, and indeed most Federal and State social 
programs, are aimed primarily at helping single mothers. The Fathers 
Count Act specifically extends a public commitment to low-income 
fathers by designing programs that attempt to help fathers improve 
their financial independence and strengthen their ability to support a 
family.

                               1. Purpose


Present law

    No provision.

Explanation of provision

    The purposes of the Fatherhood Grant Programs are to:
          (1) promote marriage through counseling, mentoring, 
        disseminating information about the advantages of 
        marriage, enhancing relationship skills, teaching how 
        to control aggression, and other methods;
          (2) promote successful parenting through counseling, 
        mentoring, disseminating information about good 
        parenting practices, training parents in money 
        management, encouraging child support payments, 
        encouraging regular visitation between fathers and 
        their children, and other methods; and
          (3) help fathers improve their economic status and 
        thereby help their families avoid welfare by providing 
        work first services, job search, job training, 
        subsidized employment, career-advancing education, job 
        retention, job enhancement, and other methods.

Reason for change

    The approach taken by the Committee in this legislation is 
to fund demonstration projects to determine the extent to which 
model programs can help reverse the negative impacts of single-
parent families on both adults and children. The most 
straightforward solution to these negative impacts is to 
increase the incidence of marriage. Whether marriage occurs or 
not, a second approach to reducing the problems associated with 
single-parent families is to promote the involvement of single 
fathers with their children. Even if fathers do not live with 
their children, they still have a responsibility to participate 
in the child's rearing and to work as a team with the mother to 
provide a solid foundation for the child's development. An 
important part of the father's responsibility is the provision 
of economic support. Since many poor fathers have a weak and 
sporadic commitment to the labor force, programs should aim to 
increase both the number of employed fathers and the work 
skills of employed fathers so they can qualify for higher 
paying jobs. The Committee selected these three goals--
increased marriage, better parenting (including payment of 
child support), economic improvement--because they all can 
contribute in fundamental ways to helping families avoid 
poverty and helping children develop into competent adults.

                          2. Fatherhood Grants


                            a. Applications


Present law

    No provision.

Explanation of provision

    An entity desiring to carry out a project may submit to the 
Secretary an application that contains the following:
          (1) a description of the project and how the project 
        will be carried out;
          (2) a description of how the project will address all 
        three purposes;
          (3) a commitment that the project will enroll 
        individuals who are the father of a child who is, or in 
        the past 24 months has been, a recipient of benefits 
        from the Temporary Assistance for Needy Families or the 
        Welfare-to-Work programs or a father or expectant or 
        married father with income below 150 percent of the 
        poverty line after paying court-ordered child support; 
        and
          (4) a commitment that the project will obtain support 
        from non-Federal sources (including in-kind 
        contributions) equal in value to 20 percent of the 
        grant. The Secretary may reduce this match requirement 
        to as low as 10 percent if the project demonstrates it 
        has limited ability to raise funds or obtain resources.

Reason for change

    The Committee expects that entities wishing to conduct 
fatherhood projects will submit applications that provide 
thorough information on how many fathers (and in many cases, 
mothers) will be enrolled, how they will be recruited, how long 
they will be enrolled, the specific types of activities in 
which they will participate, the type of staff and facilities 
that will be required to conduct the project, the types of 
private and public organizations that will participate in the 
project, and other information deemed necessary by the 
Secretary. Sponsoring entities are expected to make a 
substantial commitment either in cash or in kind to the conduct 
of the project. However, we are aware that some sponsoring 
entities, especially those supported by community-based 
organizations in poor areas, may have difficulty raising money 
or resources to provide the required match. Thus, we are 
providing authority for the Secretary to reduce the match to as 
low as 10 percent if the entity sponsoring the project presents 
adequate justification in its application. Because projects can 
count in-kind contributions such as volunteer time (which 
should be valued at the typical wage for work of that type in 
the local area) and use of donatedmaterials and facilities, we 
believe most projects should be able to accumulate the resources needed 
to provide the necessary match.

         b. Consideration of Applications by Interagency Panels


Present law

    No provision.

Explanation of provision

    Two, 10-member Panels are established to review 
applications and make recommendations to the Secretary 
regarding which applicants should be awarded grants. Each 
bipartisan Panel is appointed by the Administration and by 
Congress, serves without compensation, and must be terminated 
within 6 months of the last member's appointment. Appointments 
for each Panel are made by the Secretary (2 appointments), the 
Secretary of Labor (2), the Chairman of Ways and Means (2), the 
Ranking Member of Ways and Means (1), the Chairman of the 
Committee on Finance (2), and the Ranking Member of the 
Committee on Finance (1).

Reason for change

    Given the bipartisan support for this legislation, and the 
substantial agreement on the purposes and methods that should 
be used to increase the involvement of poor fathers in the 
lives of their children and the children's mothers, the 
Committee is expecting that individuals selected to review 
project applications will work together on a harmonious basis. 
Those in the Administration and Congress making the selections 
for members of the Panel should attempt to select individuals 
who have knowledge of or experience with fatherhood projects 
and who have demonstrated the ability to work together with 
colleagues in a cooperative manner. We have authorized two 
Panels because we want to initiate fatherhood projects as 
rapidly as possible but we are also aware that the 2000 
elections will change the membership of both the Administration 
and Congress. Thus, it seems reasonable to have one Panel 
appointed by those currently in Congress and the Administration 
and to have a second Panel appointed by the new Congress and 
the new Administration chosen by the American people in the 
2000 elections.

                           c. Matching Grants


                               (1) Timing


Present law

    No provision.

Explanation of provision

    The first Panel will be appointed by 1 March, 2000 and will 
select projects to recommend to the Secretary for funding under 
the Title I Fatherhood Grant Program by 1 September, 2000. The 
projects would begin on or after 1 October, 2000 and would be 
funded at $70 million over four years. The second Panel will be 
appointed between 1 January, 2001 and 1 March, 2001. This Panel 
will select projects to recommend to the Secretary for funding 
by 1 September, 2001. This second set of projects would begin 
on or after 1 October, 2001 and would be funded at $70 million. 
Mothers are eligible for services on the same basis as fathers 
under the Fatherhood Grant Program because the Committee 
recognizes that some low-income mothers may benefit from these 
services.

Reason for change

    The Committee realizes that the Panels will be operating on 
a tight schedule. However, the gravity of the problems being 
addressed by the fatherhood projects should provide the 
motivation needed to ensure that Congress and the 
Administration make Panel appointments in a timely fashion and 
that the Secretary move expeditiously to bring the Panels 
together and to provide them with the support that will be 
needed to function efficiently and effectively. Each Panel will 
recommend $70 million in projects to the Secretary, but the 
number of projects funded and the amount of money per project 
is left entirely to the discretion of the Panels and the 
Secretary. The justification for this approach is that 
decisions will hinge in major part on the number and quality of 
project applications submitted. Only by examining the entire 
pool of applications can good decisions be made about which 
ones to fund and at what level. The Committee assumes that the 
Panels, if adequately prepared by the Secretary in advance, 
will be able to make their selections in one meeting.

                            (2) Preferences


Present law

    No provision.

Explanation of provision

    Preference must be given to projects that:
          (1) include policies to encourage payment of child 
        support such as providing all collections on arrearages 
        to families that have left welfare, having agreements 
        with the State child support agency that the State will 
        cancel child support arrearages owed by the father to 
        the State in proportion to the length of time the 
        father pays child support or resides with the child, 
        and helping fathers improve their credit rating;
          (2) have written agreements of cooperation with other 
        agencies, including the State or local Temporary 
        Assistance for Needy Families program, the Workforce 
        Investment Board, and theState or local Child Support 
Enforcement agency;
          (3) enroll a high percentage of participants within 6 
        months before or after the child's birth; or
          (4) have a clear and practical plan for how fathers 
        will be recruited.

Reason for change

    In earlier drafts of this legislation, we included more 
requirements and fewer preferences to guide the selection of 
projects. But based on testimony at our hearing and other 
communications provided to the Committee, we have moved away 
from all but one requirement (see below) and adopted instead 
the approach of requiring the Panels and the Secretary to 
provide a preference for projects that display any or all of 
four characteristics. The Committee agrees on a bipartisan 
basis that each of these characteristics are exceptionally 
important to the successful operation of fatherhood projects. 
However, we are concerned that requiring projects, or a certain 
percentage of projects, to meet these requirements has the 
potential to greatly reduce the number of projects that could 
qualify for participation. The Committee hopes to attract a 
wide variety of entities to submit applications, including 
community-based entities that may not have extensive experience 
in meeting Federal requirements. In short, we face a trade-off 
between lots of requirements on the one hand and attracting 
many and varied entities able to meet the requirements on the 
other hand. The compromise we reached is to convert 
requirements to preferences and rely on the Panels and the 
Secretary to use good judgment in selecting projects that will 
maximize both the variety of sponsoring entities and the 
chances that the purposes of this legislation will be achieved.
    The four specific preferences we included reflect both 
research brought to the Committee's attention and testimony 
presented in our various hearings. In the past, Child Support 
Enforcement agencies have functioned primarily to collect money 
from noncustodial parents, primarily fathers. Many of these 
agencies have adopted a very tough stance toward fathers who do 
not pay child support--a stance, we must point out, that is 
consistent with Federal child support statutes. But in recent 
years, a number of State and local child support agencies have 
started to work with fathers to help them solve problems that 
often interfered with their willingness and desire to pay child 
support. The 1996 welfare reform law facilitated this process 
by authorizing and funding Access and Visitation grants that 
are now being operated in every State. These projects have 
tried to help parents with custody and visitation issues by 
attempting to mediate agreements between mothers and fathers. 
Thus, the Committee wants the fatherhood projects to continue 
this movement toward cooperation between mothers, fathers, and 
child support agencies.
    In addition, we have received extensive testimony that 
young poor fathers often have substantial child support 
arrearages by the time they are 20 or 21 years of age. If they 
enroll in a project at that time with the intent of playing a 
more responsible role in the life of their family, they are 
greatly handicapped by a child support debt that can be many 
thousands of dollars. Given the low income these poor fathers 
typically earn, it is often demoralizing for them to face such 
a large burden of debt. We have been pleasantly surprised that 
advocates for both mothers and fathers seem to agree that if 
fathers will begin paying child support on a regular basis, the 
nonpayment of arrearages should not be a constant legal threat 
against the father. In fact, we strongly encourage projects 
that will actually forgive arrearages owed to the State in 
proportion to the length of time fathers pay child support or 
live with their children. The Committee strongly encourages 
applications that pursue additional methods of encouraging 
fathers to pay child support, including by helping fathers 
spend more time with their children.
    This emphasis on child support demonstrates the importance 
of the Committee's second preference, namely, of funding 
entities that have working relationships with other agencies. 
Not only would it be advantageous for fatherhood projects to 
work with child support agencies, but it also would be useful 
to work with other private and government organizations that 
can help achieve the purposes of this legislation. Coordination 
with the Temporary Assistance for Needy Families (TANF) program 
and with local Workforce Investment Boards, for example, can 
help projects take advantage of programs that have a strong 
record of helping people get jobs and improve their job skills. 
In most cases, fathers participating in the fatherhood projects 
would qualify for work and training benefits under these other 
programs, thereby allowing the fatherhood project to use their 
own resources to achieve other purposes. Despite the many 
advantages of coordination with these organizations, the 
Committee was made aware through testimony and other means that 
community-based projects often have difficulty making contact 
with and then establishing a working relationship with other 
agencies. For this reason, we do not want to make coordination 
a requirement of funding and thereby reduce the number of local 
entities that could qualify for funds.
    The third preference is for projects that begin near the 
time of the child's birth. Recent research, called to the 
attention of the Subcommittee on Human Resources by many of our 
witnesses and summarized in the record of our April 27, 1999 
hearing by Professor Sara McLanahan of Princeton University, 
shows that as many as half the parents of children born outside 
marriage are living together at the time of the birth. Equally 
impressive, up to 80 percent of the parents say they are in a 
serious relationship that could lead to marriage. Given this 
surprising and encouraging situation, it seems to make great 
sense to work with these young couples and help them maintain 
and perhaps even improve their relationship by providing them 
with role models of marriage, by helping them with finances and 
family planning, by assisting with parenting, and by providing 
other types of assistance. A vital part of this approach would 
be to help fathers improve their economic prospects so they can 
provide firm financial support to their family. The Committee 
has adopted the approach of encouraging projects to begin 
working with parents at the time of a nonmarital birth, but 
without imposing inflexible requirements on how many projects 
must adopt this strategy.
    Finally, we heard repeatedly in testimony that fatherhood 
projects have had some difficulty in identifying and recruiting 
fathers. Thus, we want the Panels and the Secretary to 
carefully scrutinize the recruitment plan of entities 
submitting applications and favor projects that have a well 
conceived plan and a record of attracting fathers to their 
programs.

   (3) Minimum Percentage of Grants for Nongovernmental Organizations


Present law

    No provision.

Explanation of provision

    Not less than 75 percent of the organizations receiving 
funds must be nongovernmental (including faith-based) 
organizations. Governmental organizations that pass through at 
least 50 percent of their money to nongovernmental 
organizations count toward the 75 percent.

Reason for change

    The requirement that 75 percent of the funded entities must 
be nongovernmental, including faith-based, organizations is one 
requirement the Committee is retaining from previous versions 
of the bill. Members of the Committee strongly believe that 
local organizations that have their roots in the community are 
best situated to gain the trust of fathers. The fact is that 
fatherhood programs are in the business of producing 
substantial changes in the behavior of fathers. To achieve this 
end, it is a requirement to gain the trust of fathers and to 
design programs that are tailored to the problems, needs, and 
traditions of local communities. In many cases, it may be 
possible to gain the benefits of community-based organizations 
and larger, more resource rich, and more experienced 
governmental organizations by designing cooperative projects in 
which community organizations and government agencies join 
forces to prepare grant proposals and conduct integrated 
projects.

                       (4) Diversity of Projects


Present law

    No provision.

Explanation of provision

    In determining which applications to award grants, the 
Secretary must attempt to achieve balance among projects to be 
conducted by entities of different sizes, in differing 
geographical regions, in urban vs. rural areas, and in 
employing differing methods of achieving the purposes of this 
program. The Committee is requiring the Secretary to present a 
brief report to the Committee on Ways and Means and the 
Committee on Finance within two months after each round of 
grants have been awarded. The report must summarize the types 
of projects funded and the Secretary's views on why diversity--
especially a balance of urban and rural projects--has been 
achieved.

Reason for change

    The Committee wants to be certain that small, community-
based organizations are not placed at a disadvantage in the 
competition for fatherhood funds under this legislation. 
Because large entities with big budgets and government agencies 
usually have an advantage in grant competitions, we want to 
take steps to be certain that a major portion of grant funds 
under this legislation supports community-based organizations. 
We are hopeful that prospective grantees will capture the 
advantages offered by both the smaller and less formal 
community organizations and those of bigger, better-connected, 
and more experienced governmental organizations by presenting 
collaborative projects. The Committee also believes it is 
important to have several projects that serve rural areas.

         (5) Payment of Grant in Four Equal Annual Installments


Present law

    No provision.

Explanation of provision

    During the four fiscal years of each project awarded a 
grant, the Secretary must provide to each project an amount 
equal to \1/4\th of the grant amount.

Reason for change

    Regular payments will ensure that projects can pay their 
bills in a planned and consistent fashion.

                            d. Use of Funds


                             (1) In General


Present law

    No provision.

Explanation of provision

    Projects must use funds in accord with the application 
request, the requirements of this section, and the regulations 
prescribed in this section. Funds may be used to support 
community-wide initiatives to achieve the purposes of this 
part.

Reason for change

    All projects receiving funds under the fatherhood grant 
program must operate in accord with the provisions established 
by their grant proposal and by the statute and the regulations 
that govern this program. The Committee wants to emphasize that 
all projects must address all three purposes of the 
legislation. We do not expect that all projects will provide 
equal weight to all three purposes, but the activities 
described in their application and their actual use of 
resources must reflect the projects' commitment to achieving 
all three purposes.

                       (2) Worker Nondisplacement


Present Law

    The Temporary Assistance for Needy Families program 
prohibits participants engaging in a work activity from filling 
a job vacancy if any individual is on layoff from the same or 
an equivalent job with that employer or if the employer has 
terminated the employment of any regular employee to create the 
vacancy.

Explanation of provision

    The worker nondisplacement provision from the Temporary 
Assistance for Needy Families program, slightly modified, is 
applied to the Fatherhood Grant Program.

Reason for change

    The purpose of including nondisplacement language is to 
ensure that currently-employed workers will not be replaced by 
workers participating in the fatherhood program.

                       (3) Rules of Construction


Present law

    No provision.

Explanation of provision

    Fathers participating in grant projects are not required by 
Federal law to leave the project if their economic 
circumstances change. The Secretary is not authorized to define 
marriage for the purposes of this program.

Reason for change

    The Committee has approved two rules of construction. Once 
fathers have enrolled in the fatherhood program, they should 
not be required to leave the program if their economic 
circumstances improve. Particularly because a major program 
goal is to increase fathers' employment and income, it would 
make little sense to reward successful fathers by dropping them 
from the program if they are no longer poor. In many cases, 
even fathers who have improved their income may need assistance 
with the other purposes of this project. In addition, fathers 
economic circumstances may fall just as quickly as they 
improved. The Committee wishes to leave the definition of 
marriage to the States.

                    (4) Penalty for Misuse of Funds


Present law

    No provision.

Explanation of provision

    Projects that spend money for unauthorized purposes must 
forfeit all their remaining funds and remit to the Secretary an 
amount equal to the amount misused. In addition, the entity is 
ineligible for future grants.

Reason for change

    There is no justification for misusing funds from the 
fatherhood grant program. Thus, any project that violates the 
Use of Funds requirements must repay all the money they 
misspent, remit all unused funds to the Secretary, and be 
ineligible for further participation in the program.

                  (5) Remittance of Unused Grant Funds


Present law

    No provision.

Explanation of provision

    Any funds remaining at the end of the 5th fiscal year 
ending after the initial grant award must be returned to the 
Secretary.

Reason for change

    We are providing projects with four years of funding and a 
fifth year to spend any money that remains after the four years 
of project funding. It is our hope that entities funded by the 
fatherhood grant program may be able to use the fifth year as a 
transition period during which the project can secure State, 
local, or private funds to continue their activities.

         e. Authority of State Agencies to Exchange Information


Present law

    States must have in place a series of privacy protections 
in their Child Support Enforcementprogram. These protections 
include safeguards against unauthorized disclosure of information, 
including the release of addresses of individuals involved in the child 
support system.

Explanation of provision

    State and local agencies administering the TANF program, 
the Welfare-to-Work program, and the Child Support Enforcement 
program may share information on fathers to determine their 
eligibility to participate in programs and to contact eligible 
fathers (subject to applicable privacy laws). The information 
that can be exchanged is the name, address, telephone number, 
and case number of the father or the father's child.

Reason for change

    The Committee has received extensive information from State 
and local agencies conducting Welfare-to-Work programs as well 
as from private entities conducting fatherhood programs that it 
is often difficult to obtain information from government 
agencies. For projects trying to work with fathers of children 
on welfare, a major goal is to identify and contact these 
children's fathers so they can be invited to participate. For 
this reason, the Committee is granting authority to the TANF 
program, the Welfare-to-Work program, and the Child Support 
Enforcement program to grant only the name, address, telephone 
number, and case number of fathers for participation in 
projects under this legislation. We are carefully limiting 
access to only the information needed to contact fathers. 
Moreover, all applicable privacy laws apply to this provision, 
thereby insuring that any government agency and any individual 
violating these terms is subject to penalties.

                             f. Evaluation


Present law

    No provision.

Explanation of provision

    The Secretary must reserve $6 million to conduct scientific 
evaluations of fatherhood projects funded under this title and 
under Title II: Projects of National Significance. Evaluation 
funds can be spent throughout the six years of the fatherhood 
grants (2001-2006) plus one additional year (2007).

Reason for change

    A major goal of the fatherhood grant program is to discover 
whether high quality programs can increase marriage, improve 
parenting, and increase the employment or income of fathers. 
Thus, we are providing the Secretary with substantial resources 
to conduct a scientific evaluation of the best programs to 
determine whether they can in fact effect these and other 
outcomes of interest and, if so, what types of projects and 
activities are most likely to produce these outcomes. Funds for 
the evaluation begin the year before projects actually start in 
2001 and can be spent throughout the life of both waves of 
fatherhood projects and then for one year afterward. It is the 
hope of the Committee that HHS or its contractor will proceed 
by studying high quality fatherhood programs funded both by 
Titles I and II of this legislation, by selecting the best 
projects for evaluation, by working with the projects to create 
random assignment studies where possible, and by collecting 
outcome information throughout the life of the project and 
perhaps even after fathers leave the project. This approach 
will ensure a maximum of information for Congress and others to 
determine whether the fatherhood projects have been effective.

                             g. Regulations


Present law

    No provision.

Explanation of provision

    The Secretary must prescribe such regulations as may be 
necessary to carry out this section.

Reason for change

    If the Secretary deems that regulations are necessary to 
carry out the statutory provisions of this legislation, 
Congress provides her with the authority to create such 
regulations. Providing the Secretary with this authority is 
necessary to ensure the smooth implementation of most social 
programs enacted by Congress.

                               h. Funding


Present law

    No provision.

Explanation of provision

    A total of $150,000 is made available in Fiscal Years 2000 
and 2001 for the Interagency Panels. For the Fatherhood Grant 
project, $17.5 million is made available for fiscal year 2001, 
$35 million for fiscal years 2002 through 2004, and $17.5 
million for fiscal year 2005. For the evaluation, $6 million is 
made available for the years 2000 through 2007. Projects that 
begin in fiscal year 2001 can spend funds through the end of 
fiscal year 2005; projects that begin in fiscal year 2002 can 
spend fundsthrough the end of fiscal year 2006.

Reason for change

    The Committee is allocating funds totaling about $140 
million in budget authority for the fatherhood grant program. 
This amount is believed to be sufficient to mount several dozen 
projects throughout the nation, in both urban and rural areas, 
to determine which fatherhood programs and approaches are most 
effective in achieving the purposes of promoting marriage, 
improving parenting, and increasing fathers' employment and 
earnings. A total of $150,000 is set aside for the Panels, 
primarily to pay for travel expenses for the Panels to meet in 
some central location. The Committee believes each Panel should 
need one meeting to determine its recommendations to the 
Secretary. We assume that members of the Panels will be 
organized and provided with materials by the Secretary before 
meeting and that projects will be assigned to individual 
members of the Panels for review in order to facilitate 
efficient decisions about funding. The $6 million in funding 
set aside for the evaluation is assumed, based on similar 
evaluations in the past, to be adequate to conduct the type of 
evaluation outlined above.

    3. Authority to States To Pass Through Child Support Arrearages 
 Collected Through Tax Refund Intercept to Families Who Have Ceased To 
 Receive Cash Assistance; Federal Reimbursement of State Share of Such 
                       Passed Through Arrearages


Present law

    States may retain both payments on current support and 
payments on arrearages made by noncustodial parents while the 
custodial parent is receiving cash payments under the Temporary 
Assistance for Needy Families (TANF) program. Once the 
custodial parent leaves TANF, however, payments on current 
support are given to custodial parents and payments on 
arrearages are generally split between the custodial parent, 
the State government, and the Federal government. More 
specifically, States may retain, and must split with the 
Federal government, arrearage payments obtained through the 
Federal tax intercept program. All payments on arrearages 
obtained through other means must be paid to the family.

Explanation of provision

    Regardless of State policies with respect to the pass 
through of child support arrearages, the State may give the 
family both the State and Federal shares of arrearages paid by 
fathers participating in the Fatherhood Program (if the family 
does not receive cash welfare). If the State elects this 
policy, the Federal Government will pay both the Federal share 
and the State share of arrearage payments obtained through tax 
offsets for fathers participating in the grant program.

Reason for change

    In order to increase the incentive for States to pass 
through all arrearages, including those from the tax intercept 
program they are entitled to retain for themselves and the 
Federal government under current law, the Federal government 
will absorb the entire cost of the provision for fathers 
participating in a project funded by this legislation.

   4. Applicability of Charitable Choice Provisions of Welfare Reform


Present law

    Section 104 of the Personal Responsibility and Work 
Opportunity Reconciliation Act of 1996, often referred to as 
``charitable choice'', authorizes States to administer and 
provide family assistance services through contracts with 
charitable, religious, or private organizations. Under this 
provision religious organizations are eligible on the same 
basis as any other private organization to provide assistance 
as contractors as long as their programs are implemented 
consistent with the Establishment Clause of the Constitution. A 
religious organization administering the program may not 
discriminate against beneficiaries on the basis of religious 
belief or refusal to participate in a religious practice. 
States must provide an alternative provider for a beneficiary 
who objects to the religious character of the designated 
organization.

Explanation of provision

    The charitable choice provision of the 1996 welfare reform 
law applies to the Fatherhood Program.

Reason for change

    The Committee believes that religious organizations have an 
important role to play in the nation's social policy. We oppose 
any action that would provide an advantage in funding to faith-
based organizations, but it seems unwise to eliminate them from 
the competition between entities that can design and conduct 
the best projects to promote marriage, promote better 
parenting, and help fathers increase their earnings. In fact, 
promoting marriage and better parenting, as well as solving 
some of the barriers to employment such as addictions, are 
issues that would seem to be reasonable for churches and other 
faith-based organizations to address. The goal of the Committee 
in adopting this provision is simply to level the playing field 
so that faith-based entities can have their applications 
considered on the same basis as secular entities.

         Title II. Fatherhood Projects of National Significance


         sec. 201. fatherhood projects of national significance

                       1. National Clearinghouse


Present law

    No provision.

Explanation of provision

    To establish a National Clearinghouse on Fatherhood, the 
Secretary must make a $5 million grant to a nationally 
recognized nonprofit fatherhood promotion organization with at 
least four years experience in disseminating a national public 
education campaign and in providing consultation and training 
to community-based organizations interested in implementing 
fatherhood programs. The National Clearinghouse will:
          (1) develop a media campaign that encourages the 
        involvement of both parents in the life of their 
        children, and encourages responsible fatherhood and 
        marriage;
          (2) collect, evaluate, and disseminate information to 
        States about media campaigns promoting marriage and 
        fatherhood programs;
          (3) develop and disseminate materials to help young 
        adults manage their money and plan for future 
        expenditures; and
          (4) compile and distribute a list of all the sources 
        of public support for education and training for young 
        adults.

Reason for change

    The Committee hopes to establish a national movement of 
fatherhood projects addressed to helping young, especially 
poor, fathers become better husbands, parents, and providers. 
In addition to establishing a network of demonstration 
programs, it is our intent to initiate a national Clearinghouse 
that will produce, collect, and distribute information about 
fatherhood and fatherhood programs to State and local projects 
throughout the nation. Thus, we are providing funds for four 
years of operation for such a clearinghouse. In addition to 
collecting and distributing materials, we are directing the 
Clearinghouse to create a list of the education benefits 
provided by the State and Federal governments to young adults 
and adults paying for education and training beyond or in lieu 
of high school. The Committee has been impressed with the large 
number of programs that provide such education and training 
benefits, and with the near certainty that most young people do 
not know these benefits exist or how to gain access to them. 
Hence our requirement that the Clearinghouse produce and widely 
distribute the list.
    It is the expectation of the Committee that the 
Clearinghouse will provide most material free of charge to 
those who need it. However, it may be appropriate for some 
consumers of Clearinghouse material to pay fees. The Committee 
expects the Secretary to determine circumstances under which 
fees would be appropriate and the level of fees the 
Clearinghouse could charge.

                    2. Multicity Fatherhood Projects


                             a. In General


Present law

    No provision.

Explanation of provision

    The Secretary must award a $5 million grant to each of two 
nationally recognized nonprofit fatherhood promotion 
organizations to conduct projects aimed at achieving the 
purposes of this legislation (promoting marriage, promoting 
better parenting, and increasing fathers' income).

Reason for change

    The Committee wants to ensure that some experienced and 
tested fatherhood organizations mount demonstration programs in 
major cities. Through our hearings and research, we have found 
that there are several organizations that have sponsored 
fatherhood programs in inner-city areas and that have 
experience working with Child Support Enforcement and other 
government agencies. We believe these organizations have the 
capacity and experience to design and conduct fatherhood 
programs that have a good chance of producing important 
outcomes. Thus, we are directing the Secretary to fund two such 
organizations to conduct model programs in three cities. The 
Committee also expects these model projects to provide 
information about their program to the Clearinghouse so that 
their programs and products can be disseminated throughout the 
nation.

                            b. Requirements


Present law

    No provision.

Explanation of provision

    To qualify for consideration, an entity submitting a grant 
application must have:
        (1) several years experience designing and conducting 
        fatherhood programs;
        (2) experience simultaneously conducting fatherhood 
        projects in more than one major city and in 
        coordinating these programs with local government 
        agencies and private, nonprofit agencies including 
        State or local agencies responsible for Child Support 
        Enforcement and agencies responsible for employment 
        services;
        (3) a grant application that provides for projects to 
        be conducted in three major cities; and
        (4) at least one of the organizations must have 
        extensive experience in using married couples to 
        deliver their program in the inner-city.

Reason for change

    To create the greatest chance of having projects that 
produce measurable impacts on marriage, parenting, or fathers 
income, we are establishing a fairly rigorous set of standards 
for projects that may submit an application and be approved by 
the Secretary. We believe this set of standards will result in 
the selection of highly competent organizations.

         3. Payment of Grants in Four Equal Annual Installments


Present law

    No provision.

Explanation of provision

    For each of fiscal years 2002 through 2005, the Secretary 
must provide to each project awarded a grant an amount equal to 
\1/4\th of the grant amount.

Reason for change

    Paying the grant in four equal parts assures that projects 
can plan the flow of funds into their budget while reducing the 
likelihood that projects will spend most of their funds before 
the year ends. In addition, quarterly payments will allow the 
recovery of more money if projects should lose their grant 
because of unauthorized expenditures.

                               4. Funding


Present law

    No provision.

Explanation of provision

    For each of fiscal years 2002 through 2005, $3,750,000 is 
made available for grants for the National Clearinghouse and 
for the two multicity projects.

Reason for change

    Based on our understanding of the magnitude of the tasks at 
hand, as well as our review of the budget of some fatherhood 
projects, we assume that the national Clearinghouse can be 
operated for a little more than $1 million per year and each of 
the two multicity projects can be operated for a little more 
than $400,000 per city per year or about $1.25 million per 
project per year. The total cost of all three projects will be 
$3.75 million per year.

             Title III. Welfare-To-Work Program Eligibility


 Sec. 301. Flexibility in Eligibility for Participation in Welfare-To-
Work Program (this title amends Sec. 403(a) of the Social Security Act)

                 1. Hard-To-Employ Long-Term Recipients


Present law

    At least 70 percent of Welfare-to-Work funds must be spent 
on Temporary Assistance for Needy Families (TANF) recipients or 
noncustodial parents who meet each of the following 
requirements. First, the recipient or the noncustodial parent 
must meet at least two of the following requirements:
          (1) be a school dropout or have no general 
        equivalency degree, and have low skills in reading or 
        math;
          (2) require substance abuse treatment for employment; 
        and
          (3) have a poor work history.
Second, the recipient must either have received Aid to Families 
with Dependent Children (AFDC) or TANF for 30 months (not 
necessarily consecutive) or be within 12 months of losing 
eligibility because of a time limit.

Explanation of provision

    Funds may be spent on TANF recipients who meet two sets of 
requirements. First, at least one of the following must apply 
to the TANF recipient:
          (1) be a school dropout with no GED;
          (2) requires substance abuse treatment for 
        employment;
          (3) have a poor work history;
          (4) have English, reading, writing, or computing 
        skills at or below 8th grade level;
          (5) be homeless;
          (6) be disabled;
          (7) be a victim of domestic violence; and
Second, the recipient must either have received AFDC/TANF for 
30 months (not necessarily consecutive) or be within 12 months 
of losing eligibility because of a time limit.

Reason for change

    Based on testimony during our hearings and both 
correspondence and telephone calls received by the Committee 
over the past year or so, many State and local governments have 
experienced great difficulty in finding individuals who are 
qualified to participate in the Welfare-to-Work program. When 
the Committee, on a bipartisan basis and in collaboration with 
the Administration, wrote the original participation 
requirements in 1997, everyone agreed that the criteria for 
participation in the Welfare-to-Workprogram should be very 
restrictive to ensure that only the most disadvantaged individuals and 
those with the most serious barriers to work would be qualified. It now 
appears that we were too successful in making the criteria for 
participation restrictive. Thus, we are loosening the criteria to 
enable more individuals to participate in the program. However, the 
criteria are still more restrictive than those for being accepted into 
the Temporary Assistance for Needy Families program. The Committee 
expresses its view that the original purpose of the Welfare-to-Work 
program--to help those with the most serious barriers to work--is still 
valid. The Secretary of Labor and State and local officials are urged 
to do everything possible to ensure that those with the most and most 
serious barriers to work receive services under this program.

                        2. Noncustodial Parents


Present Law

    Same as ``1'' above.

Explanation of provision

    To qualify for benefits, noncustodial parents must meet two 
sets of requirements. First, the noncustodial parent must be 
unemployed, underemployed, or having difficulty paying child 
support. Second, at least one of the following must apply to 
the noncustodial parent's child:
          (1) the minor child (or custodial parent) must have 
        received assistance for 30 months or be within 12 
        months of a time limit that would result in loss of 
        assistance;
          (2) the minor child must be eligible for or receiving 
        TANF benefits;
          (3) the minor child must have left TANF within the 
        past 12 months;
          (4) the minor child must be eligible for or receiving 
        benefits from the Food Stamp program, the Supplemental 
        Security Income program, the Medicaid program, or the 
        State Children's Health Insurance Program.
In addition to these two requirements, in order to participate 
in the program the noncustodial parent must be in compliance 
with a written or oral personal responsibility contract 
developed in cooperation with the local Child Support 
Enforcement agency that includes a commitment by the 
noncustodial parent to:
          (1) cooperate in establishing paternity (if 
        necessary) and a child support order;
          (2) pay child support (the order may be modified in 
        accord with the father's ability to pay); and
          (3) work in order to make regular child support 
        payments or, for those under age 20, participate in 
        high school education or education directly related to 
        employment.
The contract must also contain a description of services 
offered to the noncustodial parent and a commitment by the 
noncustodial parent to follow the agreement. This requirement 
applies only to individuals enrolled after the date of 
enactment of this legislation. The Secretary may waive the 
child support requirement if projects lack the capacity to 
coordinate with the child support agency. The project is also 
required to take various steps to protect parents and children 
against domestic violence.

Reason for change

    The Committee has been delighted to learn through testimony 
and reports from the Department of Labor and the General 
Accounting Office that almost 40 or nearly one-fifth of 
projects funded with Welfare-to-Work funds involve the 
noncustodial parents of children on welfare. Thus, in rewriting 
the criteria for participants in the Welfare-to-Work program, 
we have elected to write a separate set of criteria for 
fathers. It is our intent to facilitate the participation of 
fathers in the Welfare-to-Work program by clarifying the entry 
criteria and by making them less restrictive than current 
standards.

 3. Recipients with Characteristics of Long-Term Dependency; Children 
                        Aging Out of Foster Care


Present law

    No provision.

Explanation of provision

    Children who are 18 but not 25 years of age who have left 
foster care are eligible to participate in the Welfare-to-Work 
program.
[Note: Former foster care youths can only be served with the 
portion of Welfare-to-Work funds set aside for individuals with 
characteristics associated with long-term welfare dependency 
(up to 30 percent of Welfare-to-Work funds).]

Reason for change

    The Committee has passed separate legislation (H.R. 1802) 
this year designed to help children leaving foster care make 
the transition to self sufficiency. The overwhelming majority 
of children in foster care have characteristics that place them 
at risk for unemployment as young adults. In fact, the 
Committee has received extensive information that these young 
adults suffer from a host of bad outcomes, including high rates 
of unemployment and dropping out of the labor force. Thus, it 
is entirely appropriate to make them eligible for services 
under the Welfare-to-Work program.

  4. Custodial Parents with Income Below Poverty Line Who Are Not on 
                                Welfare


Present law

    No provision.

Explanation of provision

    Custodial parents with incomes below the poverty level who 
are not receiving assistance under the Temporary Assistance for 
Needy Families (TANF) program are eligible to participate in 
the Welfare-to-Work program.

Reason for change

    The Committee received requests from advocacy groups for 
the homeless to allow poor custodial parents not participating 
in the TANF program to qualify for services under the Welfare-
to-Work program. Because work is one of the surest ways to 
avoid homelessness, the Committee is pleased to comply with 
this request.

Sec. 302. Limited Vocational Educational Training as Allowable Activity

Present law

    Welfare-to-Work funds can be spent on the following 
activities:
          (1) Community service work or work experience;
          (2) Wage subsidies;
          (3) On-the-job training;
          (4) Public or private contracts for programs of job 
        readiness, placement, and post-employment services;
          (5) Job vouchers;
          (6) Job retention or other support services, if such 
        services aren't otherwise available.

Explanation of provision

    Vocational educational training for a maximum of 6 months 
is defined as an additional allowable Welfare-to-Work activity.

Reason for change

    A host of State and local governments asked the Committee 
to broaden the education and work-related activities for which 
Welfare-to-Work funds can be used. The original legislation, 
developed on a bipartisan basis, defined allowable activities 
to include only those that actually involved work or were 
directly related to work. After discussion, the Committee is 
agreeing to add vocational education for a maximum of 6 months 
to the list of allowable activities. This action will provide 
Welfare-to-Work projects with a major new activity that many of 
them believe will lead to more and better employment for their 
participants, but will still retain most of the work first 
focus of the original legislation.

 Sec. 303. Certain Grantees Authorized to Provide Employment Services 
                                Directly

Present law

    Job readiness, placement, and post-employment services must 
be provided for through contracts with public or private 
providers or vouchers; they cannot be provided directly by 
Workforce Investment Boards.

Explanation of provision

    The Committee provision would allow entities other than 
Workforce Investment Boards that conduct Welfare-to-Work grant 
projects to provide direct services.

Reason for change

    Congress does not want the Workforce Investment Boards to 
be involved in the direct provision of services. However, if 
other private or governmental agencies receive Welfare-to-Work 
grants, there should be no prohibition on direct services. The 
fundamental goal of the Workforce Investment Boards is to plan 
and coordinate. Other agencies do not necessarily have these 
primary missions. Thus, Congress does not wish to eliminate all 
organizations providing direct services from conducting 
Welfare-to-Work programs.

  Sec. 304. Simplification and Coordination of Reporting Requirements

Present law

    States are required to collect monthly and report quarterly 
data on families, adults, and children receiving TANF 
assistance. This report includes data elements for activities 
funded under the Welfare-to-Work program; the total amount 
expended during the month on the family for each welfare-to-
work activity; wages paid and the amount of the wage subsidy 
paid by the Welfare-to-Work program for families engaged in 
subsidized employment and on-the-job training; and if the 
family ended participation in the program due to a family 
member obtaining employment, the wage paid to the family 
members, and the reason participation in the program was 
terminated (for example, obtaining employment or increased 
wages).

Explanation of provision

    The data reporting requirements imposed on entities 
carrying out Welfare-to-Work projects are repealed (TANF data 
reporting requirements are not affected by this provision). In 
their place, the Committee is requiring the Secretary of Labor, 
in consultation with the Secretary of HHS and State and local 
governments, to establish a new set of reporting requirements.

Reason for change

    Based on testimony and direct discussions with State and 
local governments, as well as with the National Conference of 
State Legislatures and the American Public Human Services 
Association, the Committee has come to the conclusion that the 
data reporting requirement in the Welfare-to-Work legislation 
are too extensive and complex and would cost too much for 
entities conducting programs to meet. Thus, we are repealing 
the requirement and requiring the Secretary of Labor, in 
consultation with the Secretary of HHS and State and local 
governments, to develop a new and more reasonable and 
affordable data reporting requirement.

Sec. 305. Use of State Information to Aid Administration of Welfare-To-
                        Work Formula Grant Funds

Present law

    States are permitted to share and compare Child Support 
Enforcement information with other Federal and State programs 
to carry out the Child Support Enforcement program. TANF State 
plans are required to describe the steps the State deems 
necessary to restrict the disclosure of information about 
individuals and families receiving TANF assistance.

Explanation of provision

    States are permitted to share Child Support Enforcement 
information with the Workforce Investment Boards that are 
conducting projects under the Welfare-to-Work program. The 
information that can be shared is limited to the name, address, 
phone numbers, and case identifying information of noncustodial 
parents residing in the Workforce Investment area. The 
authorized purpose of this information sharing is to allow the 
Workforce Investment Board to contact noncustodial parents 
about participation in a Welfare-to-Work program.

Reason for change

    Through testimony and other forms of contact with entities 
conducting Welfare-to-Work projects, we have learned that many 
projects have difficulty locating and contacting noncustodial 
parents. Because the Committee strongly endorses the goal of 
including noncustodial parents in the Welfare-to-Work program, 
we are authorizing Child Support Enforcement programs to share 
only identifying information with Welfare-to-Work projects 
being conducted by Workforce Investment Boards. Because of our 
concern with privacy of information held by the Child Support 
program, we are authorizing disclosure of only a modest amount 
of information and then only to Workforce Investment Boards. 
The Committee regrets not sharing this information with 
nongovernmental entities conducting projects, but privacy must 
be an overriding concern. The Committee admonishes all 
government entities that gain information from Child Support 
agencies to strictly observe State and Federal privacy laws in 
using this information.

Title IV. Alternative Penalty Procedure Relating to State Disbursement 
                                 Units


Sec. 401. Alternative Penalty Procedure Relating to State Disbursement 
    Units (this title amends Sec. 455(a) of the Social Security Act)

                             1. In General


Present law

    The 1996 welfare reform law (P.L. 104-193) required States 
to establish and operate a State Disbursement Unit (SDU) to 
receive child support payments and distribute the money in 
accord with State child support distribution rules. States that 
processed receipt of child support payments through their 
courts at the time the 1996 welfare reform law was enacted had 
until October 1, 1999 to operate an SDU approved by the 
Secretary. States that did not process child support payments 
through the courts were required to be operating an approved 
SDU by October 1, 1998.

Explanation of provision

    States that are not operating an approved State 
Disbursement Unit by October 1, 1999 may apply to the Secretary 
for an alternative penalty. To qualify for the alternative 
penalty, the Secretary must find that the State has made and is 
continuing to make a good faith effort to comply. In addition, 
the State must submit a corrective compliance plan by April 1, 
2000 that describes how, by when, and at what cost the State 
will achieve compliance with all SDU requirements. If these 
conditions are fulfilled, the Secretary must not disapprove the 
State Child Support Enforcement plan. Instead, the Secretary 
must reduce the amount the State would otherwise have received 
in Federal child support payments by the penalty amount for the 
fiscal year.

Reason for change

    When Congress originally enacted an exceptionally strong 
penalty as part of the Child Support Enforcement program (i.e., 
complete loss of Federal funds for Child Support Enforcement 
and Temporary Assistance for Needy Families), it was assumed 
that only States that willfully disregarded the Federal 
statutes would ever be subject to the penalty. However, events 
have now shown that even States that are making a good faith 
effort to meet Federal requirements are having difficulty 
meeting some Federal deadlines. Last year Congress instituted a 
new and less harsh penalty for the benefit of States that were 
having difficulty meeting the automatic data processing 
requirements of Federal law. Every State that missed the 
Federal deadline was determined by the Secretary to be making a 
good faith effort to complete their data systems. Now States 
are faced with an October 1, 1999 deadline on their State 
Disbursement Units (SDU). The best estimate we currently have 
from the Department of Health and Human Services is that up to 
eight States may miss the deadline. Reviewing the States in 
danger of missing the deadline demonstrates convincingly that 
even States with good Child SupportEnforcement programs are at 
risk. Moreover, every indication is that all eight States are making 
good faith efforts to make the deadline or complete their SDUs as soon 
thereafter as possible. Thus, the Committee has designed an alternative 
penalty procedure, modeled on the procedure enacted last year for the 
automated data processing requirement, that will provide adequate 
incentive for States to complete their systems as soon as possible but 
without imposing the harsh penalties outlined above.

                           2. Penalty Amount


Present law

    The penalty for not fulfilling the SDU requirement is 
termination of all Federal child support payments and the 
penalty described in ``6'' below.

Explanation of provision

    The penalty amount is equal to:
          (1) 4 percent of the penalty base for violations in 
        the first fiscal year;
          (2) 8 percent for violations that persist into the 
        second fiscal year;
          (3) 16 percent for the third fiscal year;
          (4) 25 percent for the fourth fiscal year; and
          (5) 30 percent for the fifth and subsequent fiscal 
        years.

Reason for change

    These percentage penalties, identical to those used in last 
year's legislation, are believed by the Committee to be 
adequate for maintaining incentive by the States to complete 
the SDU requirement as soon as possible and yet avoid imposing 
penalties that are so stiff that they could damage State 
programs.

                            3. Penalty Base


Present law

    No provision.

Explanation of provision

    The penalty base is defined as the Federal administrative 
reimbursement (i.e., the 66 percent Federal matching funds) 
that otherwise would have been payable to the State in the 
previous fiscal year.

Reason for change

    As in previous legislation, the base against which the 
penalty percentage amount is applied is the Federal 66 percent 
administrative financing. This is a substantial base which 
yields a serious but not debilitating penalty and which permits 
easy and objective calculation of penalty amounts.

 4. Penalty Provision for States That Achieve Compliance During Fiscal 
                               Year 2000


Present law

    No provision.

Explanation of provision

    If a State that is subject to a penalty achieves compliance 
on or before April 1, 2000, the Secretary shall waive the 
penalty. If a State that is subject to a penalty achieves 
compliance after April 1, 2000, and on or before September 30, 
2000, the penalty amount shall be 1 percent of the penalty 
base.

Reason for change

    Committee hearings and information from the Secretary 
convinces us that the eight States that seem to be in greatest 
danger of missing the SDU deadline are working hard to complete 
their systems. To provide additional incentive for these States 
to finish as quickly as possible, the Committee has adopted the 
policy of complete penalty forgiveness for States that finish 
their system within 6 months of the deadline and a minimal 1 
percent penalty for States that finish within 12 months.

              5. Prohibition on Two Simultaneous Penalties


Present law

    No provision.

Explanation of provision

    The Secretary may not impose a penalty against a State for 
a fiscal year for which the State has already been penalized 
for noncompliance with the automated data processing system 
requirement.

Reason for change

    The Committee does not want to impose crippling penalties 
against States that are making a good faith effort to meet all 
Federal requirements in establishing their child support 
system. As long as a State continues to make a good faith 
effort to complete its automatic data processing requirement 
and its SDU requirement, one penalty should be adequate to 
maintain the State's incentive to complete bothsystems at the 
earliest possible moment.

            6. Inapplicability of Penalty Under TANF Program


Present law

    States that do not have an approved Child Support 
Enforcement system--including an approved SDU--are not eligible 
for payments under the Temporary Assistance for Needy Families 
(TANF) block grant.

Explanation of provision

    The TANF penalty for a finding by an audit that the State 
failed to substantially comply with one or more of the Child 
Support Enforcement (Title IV-D) requirements is not applicable 
with respect to the SDU requirements (or the automated systems 
requirement).

Reason for change

    This provision is a conforming amendment to the TANF 
statute (Title IV-A) that must be made to avoid a double 
penalty.

                     Title V. Financing Provisions


   Sec. 501. Use of New Hire Information to Assist in Collection of 
                   Defaulted Student Loans and Grants

Present law

    No provision.

Explanation of provision

    The Secretary must comply with any request from the 
Secretary of Education for information in the National 
Directory of New Hires on the address or employer of any 
individual who is in default on the payment of a student loan.

Reason for change

    The New Hire data base consists of the name, address, 
Social Security number, and employer address of every worker 
hired in the United States. Employers in every State report 
this information to the State New Hire data base; the various 
State New Hire data bases then report to the Federal New Hire 
data base. Thus, the Federal repository of New Hire information 
is an extremely powerful set of employer addresses for most 
people in the United States who have been hired in recent 
years. These employer addresses can be used to locate 
individuals who are committing fraud against the United States 
government by refusing to pay various debts owed to U.S. 
taxpayers. The biggest of these sources of debt is the student 
loan program authorized under the Higher Education Act. By 
allowing the Secretary of Education to submit the names of 
student loan debtors to the Federal New Hire data base 
maintained by the Social Security Administration (under 
subcontract with the Department of Health and Human Services), 
and by returning employer address information to the Secretary 
of Education on individuals who are fraudulently overdue on 
their student loans, the Congressional Budget Office estimates 
that about $135 million in overdue loans can be collected over 
5 years. The Committee believes this to be an exceptionally 
constructive use of the New Hire information.
    The Committee is determined to ensure that the New Hire 
information is not used for any purpose that could compromise 
individuals who have background information in the data base. 
Because information only on individuals who are fraudulently in 
debt to the Federal government is reported to the Secretary of 
Education, the procedure we have established ensures that 
privacy concerns will not be compromised. Information on all 
individuals who have not committed fraud will not leave the HHS 
data base. Furthermore, individuals and organizations that use 
the New Hire information for purposes other than those 
permitted by this legislation are subject to prosecution under 
Federal law. We are therefore confident that the information in 
the New Hire data base will remain secure.

Sec. 502. Elimination of Set-Aside of Portion of Welfare-To-Work Funds 
                    for Successful Performance Bonus

Present law

    The Welfare-to-Work Program authorized under Title IV-A of 
the Social Security Act provides for $100 million in bonus 
payments for FY 2000 to be paid to States that achieve high 
performance in placing participants in work and other outcomes.

Explanation of provision

    The $100 million bonus is repealed.

Reason for change

    Very few States and localities have spent all their funds 
under the Welfare-to-Work program. Thus, to be providing a 
performance bonus at this point, when so little of the program 
money has been spent, seems unwise. Furthermore, there is a 
billion dollars in bonus payments now being provided under the 
Temporary Assistance for Needy Families (TANF) block grant for 
the same performance goals and nearly the same population of 
needy individuals as the performance goals and individuals 
targeted by the Welfare-to-Work program. For both these 
reasons, the Committee believes little willbe lost by repealing 
the performance bonus under the Welfare-to-Work program.

                        Title VI. Miscellaneous


                 Sec. 601. Change Dates for Evaluation

Present law

    Authorization of funds to pay for the evaluation of the 
Abstinence Education program expires at the end of FY 2001.

Explanation of provision

    Authorization to spend funds on evaluation of the 
Abstinence Education Program is extended to 2005.

Reason for change

    The Abstinence Education program authorized by the 1996 
Welfare Reform Law (P.L. 104-193) is now being implemented 
around the nation. Nearly every State is mounting programs that 
promote abstinence among school-age students. The Secretary has 
selected a noted policy research company to conduct the 
evaluation of these programs so that Congress can determine 
whether they are resulting in an increase in abstinence, a 
reduction in teen pregnancy, or in other impacts intended by 
the legislation. However, because many of the projects are now 
in only the early stages of implementation, and because effects 
of these programs on sexual behavior over a period of years is 
an important outcome, the Committee believes the evaluation 
should be allowed to follow children for an extended period. 
Since the funds end in FY 2001 under current law, we are 
granting a 4-year extension to 2005 to permit a longer period 
of follow-up by the evaluation.

        Sec. 602. Report on Undistributed Child Support Payments

Present law

    No provision.

Explanation of provision

    Within 6 months of enactment, the Secretary must prepare a 
report on the procedures States use to locate custodial parents 
for whom child support has been collected but not yet 
distributed due to a change in address. The report must include 
an estimate of how much money States hold in this fashion and 
the length of time for which it is held. The Secretary must 
include recommendations about whether additional Federal or 
State procedures should be established to expedite payment of 
undistributed child support.

Reason for change

    In recent hearings as well as newspaper reports, the 
Committee has learned that States have possession of money 
collected in child support that for various reasons they do not 
immediately distribute to the family that has a legal right to 
the money. Apparently the reason for the failure to promptly 
pay this money to families is that the State does not have 
address information on the family or has inaccurate address 
information. Unfortunately, the information the Committee has 
received about this undistributed child support is sketchy. 
Thus, we are requiring the Secretary to look into this issue 
and prepare a report on its causes, magnitude, and potential 
Federal and State solutions. If appropriate, we urge the 
Secretary to recommend legislative actions Congress can take to 
reduce or eliminate this problem.

                    Sec. 603. Sense of The Congress

Present law

    No provision.

Explanation of provision

    It is the sense of the Congress that the States may use 
funds provided under the program of block grants for Temporary 
Assistance for Needy Families under part A of title IV of the 
Social Security Act to promote fatherhood programs of the type 
supported by this legislation.

Reason for change

    The Committee is aware that this Sense of the Congress 
provision does not change TANF law in any way. However, we 
think it is useful to bring to the attention of States, 
advocates, and other interested parties the fact that TANF 
funds can be spent for fatherhood programs of the type 
supported by this legislation. Our hope in calling attention to 
this use of TANF funds is that States will begin to invest some 
of their TANF surpluses in fatherhood programs.

       Sec. 604. Additional Funding for Welfare Evaluation Study

Present law

    The 1996 welfare reform law (P.L. 104-193) appropriated $10 
million per year for the Census Bureau to conduct a national 
study of the effects of welfare reform. Funds began in fiscal 
year 1996and end in fiscal year 2002.

Explanation of provision

    The Committee bill provides the Census Bureau with a total 
of $19.3 million over the period of Fiscal Year 2000 to Fiscal 
Year 2003 to enhance the study of the effects of welfare 
reform.

Reason for change

    In reconstituting two original waves of the Survey of 
Income and Program Participation (SIPP) as called for under the 
1996 legislation in order to have a longitudinal sample to 
examine the well being of poor families before and after 
enactment of the 1996 welfare reform law, the Census Bureau has 
experienced an attrition rate of about 50 percent in the SIPP 
sample. Given that this attrition rate reduces the validity of 
findings from the study, the Committee asked the Census Bureau 
to devise and test methods by which the attrition could be 
reduced. As a result of this study, the Census Bureau believes 
it can substantially reduce attrition by locating some families 
who were previously dropped from the sample and by paying a 
cash fee to families that agree to continue their participation 
in the study. The Committee expects that most of the additional 
funds will be used for these and similar actions that will 
reduce the attrition rate. In addition, the Committee expects 
the Census Bureau to use some of the money to prepare the final 
round of interview data for use by the public.

       Sec. 605. Training in Child Abuse and Neglect Proceedings

Present law

    Title IV-E of the Social Security Act provides entitlement 
funds to train social workers, foster parents, adoptive 
parents, and others to better fulfill their responsibilities in 
the child protection system. Generally State or local 
governments plan and conduct the training, sometimes using 
private contractors. The Federal government reimburses States 
for 75 percent of the cost of approved training.

Explanation of provision

    The Title IV-E training provision is expanded to cover 
court personnel.

Reason for change

    Since enactment of the Adoption and Safe Families Act of 
1997 (P.L. 105-89), the training of court personnel has become 
exceptionally important. Three major provisions of the 1997 law 
require careful and thorough implementation by the courts. 
These provisions are the requirement that child safety be the 
paramount goal of the child protection system; the provision 
that States may define and use exceptions to the Federal 
requirement that ``reasonable efforts'' must be made to help 
families before termination of parental rights can be 
considered; and the mandate that, with some exceptions, States 
begin proceedings to terminate parental rights after children 
have been in foster care for 15 months. Because these 
provisions, all of which are implemented primarily by the 
courts, are both new and complex, the Committee believes that 
training of court personnel and especially judges is essential 
to full implementation of the 1997 reforms.

 Sec. 606. Use of New Hire Information to Assist in Administration of 
                   Unemployment Compensation Programs

Present law

    The 1996 welfare reform law (P.L. 104-193) required all 
employers in the nation to report basic information on every 
newly-hired employee to the State. States were in turn required 
to collect all this information into the State Directory of New 
Hires, to use this information to locate noncustodial parents 
who owed child support and to send a wage withholding order to 
their employer, and to periodically report all information in 
their Directory to the Federal government. Information from all 
State New Hire Directories is then stored to create the 
National New Hire Directory data base. Because the State 
Directory of New Hires contains recent data on employment, the 
1996 law also required State Employment Security Agencies to 
use the information to detect overpayments in the Unemployment 
Insurance program and to extract repayment by intercepting 
current wages.

Explanation of provision

    State Employment Security Agencies are authorized to gain 
access to information in the Federal Directory of New Hires.

Reason for change

    The provision of the 1996 welfare reform law that State 
Employment Security Agencies use data in the State New Hire 
Directory to recover Unemployment Insurance overpayments has 
worked well. States are saving millions of dollars each year by 
detecting these overpayments earlier and by using New Hire 
information to recover overpayments. However, the 1996 
legislation did not grant State Employment Security Agencies 
access to information in the Federal New Hire Directory. The 
lack of access to this information means that States do not 
have access to information from workers who have jobs in other 
States. In addition, the 1996 allows employers with offices in 
more than one State to report to a single State of their choice 
all the New Hire information from every State in which they 
have an office. Thus, State Employment Security Agencies lose 
all this information as well. By giving States access to the 
Federal New Hire Directory, both of these problems will be 
overcome and States will save millions of dollars each year in 
Unemployment Insurance overpayments that are avoided and 
recovered.

                      III. VOTES OF THE COMMITTEE

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, the following statements are made 
concerning the votes of the Committee in its consideration of 
the bill, H.R. 3073.

                       Motion To Report the Bill

    The bill, H.R. 3073, as introduced, was ordered favorably 
reported by voice vote on October 21, 1999, with a quorum 
present.

                     IV. BUDGET EFFECTS OF THE BILL


               A. Committee Estimate of Budgetary Effects

    In compliance with clause 3(d)(2) of rule XIII of the Rules 
of the House of Representatives, the following statement is 
made:
    The Committee agrees with the estimate prepared by the 
Congressional Budget office (CBO) which is included below.

    B. Statement Regarding New Budget Authority and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee states that 
although the Committee bill results in increased budget 
authority and outlays, the bill also provides for savings in 
budget authority and outlays so that the entire bill is deficit 
neutral over 5 years. The bill contains no new tax 
expenditures.

      C. Cost Estimate Prepared by the Congressional Budget Office

    In compliance with clause 3(c)(3) of rule XIII of the Rules 
of the House of Representatives requiring a cost estimate 
prepared by the Congressional Budget Office (CBO), the 
following report prepared by CBO is provided.

                                     U.S. Congress,
                               Congressional Budget Office,
                                  Washington, DC, October 27, 1999.
Hon. Bill Archer,
Chairman, Committee on Ways and Means,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 3073, the Fathers 
Count Act of 1999.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Sheila Dacey.
            Sincerely,
                                         Barry B. Anderson,
                                    (For Dan L. Crippen, Director).
    Enclosure.

H.R. 3073--Fathers Count Act of 1999

    Summary: H.R. 3073 would establish a new grant program to 
promote responsible fatherhood, change eligibility rules and 
expand allowed activities in the Welfare-to-Work grant program, 
and provide an alternative penalty procedure for states that 
have failed to complete child support disbursement units on 
time. Other provisions in the bill would seek to improve 
collections on defaulted student loans, eliminate the Welfare-
to-Work performance bonus, improve fraud detection procedures 
in the unemployment compensation program, and increase funding 
for welfare research and training about adoption procedures for 
court personnel.
    H.R. 3073 would result in reduced direct spending in some 
years and increased spending in others, for an estimated net 
saving of $138 million over the 2000-2009 period. It would also 
cause a reduction in revenues from unemployment taxes totaling 
about $154 million over the 10-year period. Consequently, CBO 
estimates that this bill would increase the federal 
government's surplus by $37 million in 2000 and by $2 million 
over the 2000-2004 period. It would decrease the surplus by an 
estimated $16 million over the 2000-2009 period. Because the 
bill would affect revenues and direct spending, pay-as-you-go 
procedures would apply.
    H.R. 3073 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA). 
New grant provisions, greater flexibility in the Welfare-to-
Work program, and the alternative penalty procedure for 
compliance with child support requirements would benefit 
states, and in some cases, local and tribal governments. Some 
provisions would place additional grant conditions on states 
and would reduce financial assistance; however, these changes 
would not be mandates as defined in UMRA.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 3073 is shown in Table 1. The costs of 
this legislation fall within budget functions 370 (Commerce and 
Housing Credit), 500 (Education, Training, Employment, and 
Social Services), and 600 (Income Security).
    Basis of estimate: The estimated budgetary impact of H.R. 
3073, by provision, is shown in Table 2. Provisions with no 
estimated budgetary effect are excluded from this table.
            Title I: Fatherhood Grant Program
    Fatherhood Grants. Title I would establish a new program to 
make grants to public and private entities for projects 
designed to promote marriage, improve parenting, and help 
fathers and their families leave welfare.
    Two interagency panels, funded at a total of $150,000 for 
2000 and 2001, would review applications and make 
recommendations to the Secretary of Health and Human Services. 
The Secretary would award up to $70 million in grants in each 
of 2001 and 2002. The funding would be available to grantees in 
four equal annual installments, and grantees would have to 
commit $1 for every $5 of federal grant funding. Grantees could 
provide services to fathers with incomes below 150 percent of 
poverty or fathers whose children received funds from the 
Temporary Assistance for Needy Families (TANF) program sometime 
in the most recent two-year period. CBO estimates that spending 
by grantees would initially be slow as the programs are phased 
in, but would speed up gradually in succeeding years. Spending 
would total $86 million over the 2000-2004 period and $140 
million over the 2000-2009 period.

                                 TABLE 1. FEDERAL BUDGETARY EFFECTS OF H.R. 3073
----------------------------------------------------------------------------------------------------------------
                                                             By fiscal year, in millions of dollars--
                                                ----------------------------------------------------------------
                                                     2000         2001         2002         2003         2004
----------------------------------------------------------------------------------------------------------------
                                                 DIRECT SPENDING
 
Spending Under Current Law:
    Fatherhood Grants..........................            0            0            0            0            0
    Child Support..............................        1,790        1,940        2,140        2,450        2,730
    TANF.......................................       12,600       13,150       14,150       15,250       15,950
    Welfare-to-Work Grants.....................          760          835          535            0            0
    Student Loans..............................        4,112        4,526        3,807        4,964        4,777
    Bureau of the Census Study.................           10           10           10            3            1
    Foster Care................................        5,296        5,768        6,253        6,751        7,255
    Unemployment Compensation..................       22,622       24,741       26,355       27,654       28,704
                                                ----------------------------------------------------------------
      Total....................................       47,190       50,970       53,250       57,072       59,417
                                                ================================================================
Proposed Changes:
    Fatherhood Grants..........................            0            4           16           32           43
    Child Support..............................            0            2            2            2            2
    TANF.......................................            0            0            1            1            2
    Welfare-to-Work Grants.....................           60          -35          -65            0            0
    Student Loans..............................          -95          -10          -10          -10          -10
    Bureau of the Census Study.................            1            5            6            5            2
    Foster Care................................            4           10           12           13           14
    Unemployment Compensation..................           -7          -10          -12          -16          -17
                                                ----------------------------------------------------------------
      Total....................................          -37          -34          -50           26           36
                                                ================================================================
Spending Under H.R. 3073:
    Fatherhood Grants..........................            0            4           16           32           43
    Child Support..............................        1,790        1,942        2,142        2,452        2,732
    TANF.......................................       12,600       13,150       14,151       15,251       15,952
    Welfare-to-Work Grants.....................          820          800          470            0            0
    Student Loans..............................        4,017        4,516        3,797        4,954        4,767
    Bureau of the Census Study.................           11           15           16            8            3
    Foster Care................................        5,300        5,778        6,265        6,764        7,269
    Unemployment Compensation..................       22,615       24,732       26,343       27,638       28,687
                                                ----------------------------------------------------------------
      Total....................................       47,153       50,936       53,200       57,098       59,453
 
                                                    REVENUES
 
Unemployment Taxes.............................            0           -3          -13          -18          -24
 
                                            DEFICIT (-) / SURPLUS (+)
 
Net Effect.....................................           37           31           37          -44          -60
----------------------------------------------------------------------------------------------------------------
Note.--Components may not sum to totals because of rounding.


              TABLE 2. ESTIMATED EFFECTS OF H.R. 3073 ON DIRECT SPENDING AND REVENUE, BY PROVISION
----------------------------------------------------------------------------------------------------------------
                                                     By fiscal year, in millions of dollars--
                                --------------------------------------------------------------------------------
                                   2000    2001    2002    2003    2004    2005    2006    2007    2008    2009
----------------------------------------------------------------------------------------------------------------
                                                 DIRECT SPENDING
 
Title I, Fatherhood Grant
 Program:
    Panels:
        Estimated Budget           (\1\)   (\1\)       0       0       0       0       0       0       0       0
         Authority.............
        Estimated Outlays......    (\1\)   (\1\)       0       0       0       0       0       0       0       0
    Fatherhood Grants:
        Estimated Budget               0      18      35      35      35      18       0       0       0       0
         Authority.............
        Estimated Outlays......        0       4      15      29      39      33      17       4       0       0
    Option to Distribute More
     Child Care
    Arrearages to Participants'
     Families:
        Estimated Budget               0       2       2       2       2       2       2       2       0       0
         Authority.............
        Estimated Outlays......        0       2       2       2       2       2       2       2       0       0
    Effect of Grant Program on
     TANF:
        Estimated Budget               0       0       0       0       0       0       0       0       0       0
         Authority.............
        Estimated Outlays......        0       0       1       1       2       2       1       0       0       0
    Evaluation:
        Estimated Budget               0       6       0       0       0       0       0       0       0       0
         Authority.............
        Estimated Outlays......        0       1       1       1       1       1       2       0       0       0
        Subtotal, Title I:
        Estimated Budget               0      25      37      37      37      20       2       2       0       0
         Authority.............
        Estimated Outlays......        0       6      18      33      43      39      22       6       0       0
Title II, Fatherhood Projects
 of National Significance:
        Estimated Budget               0       0       4       4       4       4       0       0       0       0
         Authority.............
        Estimated Outlays......        0       0       1       2       4       4       3       1       0       0
Title III, Welfare-to-Work
 Program Eligibility:
        Estimated Budget               0       0       0       0       0       0       0       0       0       0
         Authority.............
        Estimated Outlays......       80       5     -25       0       0       0       0       0       0       0
Title V, Financing Provisions:
  Use of New Hire Data to
   Collect Defaulted Student
   Loans:
        Estimated Budget             -95     -10     -10     -15     -15     -15     -15     -15     -15     -15
         Authority.............
        Estimated Outlays......      -95     -10     -10     -10     -10     -10     -10     -15     -15     -15
    Elimination of Welfare-to-
     Work
    Performance Bonus:
        Estimated Budget            -100       0       0       0       0       0       0       0       0       0
         Authority.............
        Estimated Outlays......      -20     -40     -40       0       0       0       0       0       0       0
        Subtotal, Title V:
        Estimated Budget            -195     -10     -10     -15     -15     -15     -15     -15     -15     -15
         Authority.............
        Estimated Outlays......     -113     -50     -50     -10     -10     -10     -10     -15     -15     -15
Title VI, Miscellaneous:
        Estimated Budget               2       8       6       4       0       0       0       0       0       0
         Authority.............
        Estimated Outlays......        1       5       6       5       2       0       0       0       0       0
    Training in Child Abuse and
     Neglect Proceedings:
        Estimated Budget               5      11      12      13      14       0       0       0       0       0
         Authority.............
        Estimated Outlays......        4      10      12      13      14       3       0       0       0       0
    Use of New Hire Information
     for Unemployment
     Compensation Program:
        Estimated Budget              -7     -10     -12     -16     -17      17     -18     -18     -19     -20
         Authority.............
        Estimated Outlays......       -7     -10     -12     -16     -17     -17     -18     -18     -19     -20
    Subtotal, Title VI:
        Estimated Budget               0       9       6       1      -3     -17     -18     -18     -19     -20
         Authority.............
        Estimated Outlays......       -2       6       6       1      -1     -14     -18     -18     -19     -20
Total:
        Estimated Budget            -195      24      36      26      23      -9     -31     -32     -34     -35
         Authority.............
        Estimated Outlays......      -37     -34     -50      26      36      19      -3     -26     -34     -35
 
                                                    REVENUES
 
Use of New Hire Information            0      -3     -13     -18     -24     -23     -18     -18     -19     -20
 Program for Unemployment
 Compensation Program..........
 
                                             DEFICIT (-)/SURPLUS (+)
 
        Net Effect.............       37      31      37     -44     -60     -41     -15       8      15      15
----------------------------------------------------------------------------------------------------------------
\1\ Less than $500,000.
 
Notes.--Components may not sum to totals due to rounding.

    Child Support Arrearages. The bill would give states the 
option of sharing more child support collections with families 
of participants in fatherhood programs. When a family stops 
receiving welfare, states continue to collect and enforce the 
family's child supportorder. All amounts collected on time and 
some past-due amounts are sent directly to the family. The states keep 
some past-due child support--support collected through the federal tax 
offset program--to reimburse themselves and the federal government for 
past welfare payments. The bill would allow states to pay all past-due 
child support to the families of participants. The federal government 
would relinquish its share of such payments and would reimburse the 
state for the state's share of such payments.
    CBO estimates that paying the additional child support to 
families would cost the federal government about $2 million a 
year in administrative costs and the federal share of 
collections. The bulk of the cost would be administrative costs 
to reprogram computer systems, track participants in the 
fatherhood grant program, and apply the special distribution 
rules to those families. Based on information from state child 
support directors, CBO estimates that 50 percent of states 
would opt to share more child support collections with the 
families of participants at an administrative cost of about 
$100,000 per state per year. The federal government would pay 
66 percent of administrative costs for a total federal cost of 
$1.7 million a year.
    In addition, CBO estimates that about $500,000 annually in 
collections would be paid to families instead of to state and 
federal governments. That estimate assumes that, in an average 
year, there would be 9,000 participants in states that opt to 
pass more child support collections through to families. CBO 
estimates, using data from the Survey of Income and Program 
Participation compiled by the Urban Institute and from the 
child support program, that additional payments to each family 
would be about $50 per participant per year.
    Effect of Grant Program on TANF Spending. The fatherhood 
grant program would affect spending under the TANF program. 
Some of the fatherhood grant money would be spent by government 
entities on families eligible for TANF. This spending could 
count as maintenance-of-effort spending in the TANF program and 
would be in addition to TANF spending by those entities under 
current law. CBO estimates that federal TANF outlays would 
increase by $5 for every $100 of fatherhood grant spending. The 
estimate assumes that entities contribute the 20-percent 
matching funds and that 25 percent of those funds would quality 
as maintenance-of-effort spending. Additional spending would 
total $4 million over the 2000-2004 period and $7 million over 
the 2000-2009 period.
    Evaluations. The Secretary would conduct an evaluation of 
selected fatherhood projects. The bill would make $6 million 
available over the 2000-2006 period for that evaluation.
            Title II: Fatherhood projects of national significance
    The bill would establish a one-time grant of $5 million for 
a nonprofit organization to create a national clearinghouse to 
develop and distribute materials supporting marriage and 
responsible parenting. In addition, it would establish grants 
of $5 million for each of two nonprofits to establish multicity 
projects to promote marriage and successful parenting and help 
fathers and their families leave welfare. The grants would be 
awarded in four equal, annual installments starting in 2002. 
Spending would total $7 million over the 2000-2004 period and 
$15 million over the 2000-2004 period.
            Title III: Welfare-to-Work program eligibility
    This bill would broaden the eligibility criteria for the 
Welfare-to-Work block grants, and would also allow funds to be 
spent on stand-alone vocational training. A survey of states 
indicated that these changes would make it easier for them to 
serve clients under the Welfare-to-Work program. CBO estimates 
that state grants, which have already been awarded, would spend 
more quickly than under current law. In addition, CBO estimates 
that overall spending would increase. Under current law, states 
have four years to spend the grant money, the last of which was 
provided at the end of fiscal year 1999. Under current law, CBO 
assumes that about $300 million would go unspent, in part 
because of the difficulty states are having in enrolling 
eligible participants. CBO estimates that the expansion would 
increase overall spending by about $60 million over the 2000-
2002 period.
            Title IV: Alternative penalty procedure relating to state 
                    disbursement units
    H.R. 3073 would establish an alternative penalty procedure 
for states that fail to operate a statewide disbursement unit 
(SDU) by the required deadline. An SDU is a centralized, 
automated unit for collecting and disbursing child support 
payments. In general, states were required to operate an SDU 
for child support by October 1, 1998. Some states that 
distribute child support through their court system have a 
later deadline of October 1, 1999. A small number of states are 
believed to have missed that deadline.
    Under current law, the penalty for not operating an SDU on 
time is disapproval of the state's child support state plan. 
The federal government will not pay the federal share of the 
expenses to run the state's child support program or TANF 
program without an approved state plan. However, there is an 
extensive period for hearings and appeals before a state planis 
disapproved. CBO estimates that no state will have its state plan 
disapproved under current law, because all states will have an approved 
SDU before the appeals period ends.
    The bill would establish an alternative to the severe 
penalty under current law. A state that opted for the 
alternative would receive no penalty if it finished by April 1, 
2000. States finishing after that date would pay a penalty 
equal to some percentage of their federal share of 
administrative costs. The penalty would be 1 percent for states 
finishing by September 30, 2000, and would escalate up to 30 
percent for states not finishing before September 30, 2004. A 
state that was already paying a penalty for failure to complete 
a child support computer system would be exempt from any 
additional penalty for failure to complete its SDU.
    Only three states are expected to have completed a child 
support computer system, but not an SDU: Texas, Illinois, and 
Wyoming. CBO assumes that these states would not apply for the 
alternative penalty and would complete their SDUs before the 
Secretary disapproves their state plans.
            Title V: Financing provisions
    Use of New Hire Data to Collect Defaulted Student Loans. 
H.R. 3073 would give the Department of Education (ED) another 
wage garnishment tool to collect defaulted student loans. The 
ED would be able to obtain useful data from the Department of 
Health and Human Services's database on new hires. ED could use 
the acquired information only to collect debt owed by people 
whose new job paid more than $16,000 annually.
    CBO estimates that roughly one million ``hard to collect'' 
claims for defaults on student loans are outstanding. Based on 
discussions with organizations involved in the collection of 
such debt, CBO estimates that about 10 percent, or about 
100,000 defaulters, would be affected by collectors accessing 
data retrieved through the new hire database. Most of the 
federal budgetary impact of this provision would result from 
bringing defaulters into repayment earlier and collecting more 
of their outstanding debt. CBO expects that only a few 
defaulters who would pay nothing under current collection 
measures would be brought into repayment by use of this new 
tool.
    The budgetary impact of this provision is assessed under 
the requirements of credit reform. As such, the budget records 
all the collections associated with a new loan on a present-
value basis in the year the loan is obligated. The present 
value of additional collections from all current outstanding 
loans is displayed in the year the bill is enacted--in this 
case 2000. On this basis, CBO estimates that the legislation 
would save $95 million in fiscal year 2000, $135 million over 
the 2000-2004 period, and $200 million over the 2000-2009 
period.
    Elimination of the Performance Bonus. Section 502 would 
eliminate the $100 million set-aside for Welfare-to-Work 
performance bonuses. These bonuses were to have been paid over 
the fiscal years 2000 through 2002. Therefore, eliminating the 
bonuses would save $100 million over that period.
            Title VI: Miscellaneous
    Welfare Evaluation Study. Section 604 would increase the 
funding available to the Bureau of the Census to collect survey 
data on welfare recipients and other low-income families. An 
additional $19.3 million would be provided over the 2000-2004 
period. CBO estimates that the additional funding would be 
spent at the same rate as the current funding for the survey.
    Training in Child Abuse and Neglect Proceedings. Section 
605 would allow federal funds for training in the Foster Care 
and Adoption programs to be used to train court personnel in 
matters related to the court's role in expediting adoption 
procedures, implementing reasonable efforts, and providing for 
timely permanency planning and case reviews. The new authority 
would only be available over the 2000-2004 period. Under 
current law, funds are used only to train foster and adoptive 
parents or agency personnel, and the federal government pays 75 
percent of all allowable training costs. Based on a survey of 
several foster care state directors, CBO estimates that the 
federal cost of the program would be $4 million in 2000, $10 
million when it was fully implemented in 2001, and $55 million 
over the 2000-2009 period.
    Unemployment Compensation. Section 606 would allow states 
to use information from the national database of new hires to 
help detect fraud in the unemployment compensation system. 
Currently, most states may use the information that they send 
to the national registry. However, without access to the 
national information, a state may not receive important data 
regarding recent hires by employers that may report in other 
states. Only a few states have examined potential savings that 
could be realized if they had access to the national data, and 
their estimates of savings are small--about 0.1 percent of 
total benefits. Nevertheless, states generally believe that 
access to the national data would be a valuable tool in 
detecting fraud earlier, as the information on new hires is 
more current than that contained in quarterly wage reports upon 
which many states now rely. A recent survey by the Interstate 
Conference of State Employment Security Agencies indicated that 
19 statescurrently were using the state-reported information on 
new hires, and another 20 states reported that they hoped to make use 
of this information in the near future.
    For purposes of this estimate, CBO assumed that the states 
currently using their own information would make use of the 
national information in the year that it became available. The 
other interested states are assumed to take advantage of the 
national information within the next few years. CBO estimates 
that this provision would result in a reduction of $154 million 
in spending for unemployment compensation over the 2000-2009 
period. CBO assumes that this reduction in spending would be 
fully offset by reductions in state employment taxes. 
Consequently, the provision would have no net effect on the 
federal budget over the 10-year period.
    Pay-as-you-go considerations: Section 252 of the Balanced 
Budget and Emergency Deficit Control Act sets up pay-as-you-go 
procedures for legislation affecting direct spending or 
receipts. The net changes in outlays and governmental receipts 
that are subject to pay-as-you-go procedures are shown in the 
following table. For the purposes of enforcing pay-as-you-go 
procedures, only the effects in the budget year and the 
succeeding four years are counted.

                           TABLE 3. SUMMARY OF THE PAY-AS-YOU-GO EFFECTS OF H.R. 3073
----------------------------------------------------------------------------------------------------------------
                                                     By fiscal year, in millions of dollars--
                                 -------------------------------------------------------------------------------
                                   2000    2001    2002    2003    2004    2005    2006    2007    2008    2009
----------------------------------------------------------------------------------------------------------------
Changes in outlays..............     -37     -34     -50      26      36      19      -3     -26     -34     -35
Changes in receipts.............       0      -3     -13     -18     -24     -23     -18     -18     -19     -20
----------------------------------------------------------------------------------------------------------------

    Estimated impact on state, local, and tribal governments: 
The bill contains no intergovernmental mandates as defined in 
UMRA. New grant provisions, greater flexibility in the Welfare-
to-Work program, and the alternative penalty procedure for 
compliance with child support requirements would benefit 
states, and in some cases, local and tribal governments. Some 
provisions would place additional grant conditions on states 
and would reduce financial assistance; however, these changes 
would not be mandates as defined in UMRA.
    CBO estimates that the federal government would spend $86 
million over the 2000-2004 period for fatherhood grants, and 
some portion of those awards would likely go to state, local, 
or tribal governments. In order to receive fatherhood grants, 
those governments would have to provide $1 for every $5 in 
federal assistance.
    The bill would allow states to share more child support 
payments with families of participants in fatherhood programs. 
Past-due funds collected by states as reimbursement for prior 
welfare payments could be disbursed to those families at the 
option of states. The federal government would reimburse states 
for the states' share of such payments. CBO estimates that 
states would incur some administrative costs if they chose to 
implement such a program and that the state share of those 
costs would total less than $1 million per year.
    CBO estimates that the change in the penalty procedure for 
state disbursement units would not result in any change in 
penalty collections associated with the child support program. 
However, the alternative procedure would reduce the threat that 
states could lose child support enforcement and TANF funding if 
they are in noncompliance.
    The bill would make a number of changes in the Welfare-to-
Work program, broadening eligibility requirements, and 
expanding the ability of states to use grant funds for 
vocational training. By making it easier for states to serve 
clients, the proposed changes would result in an increase of 
about $30 million in state spending in the Welfare-to-Work 
program over the 2000-2004 period. This state spending would be 
matched by $60 million in federal assistance, as noted above. 
The elimination of Welfare-to-Work performance bonuses would 
decrease assistance to states by $100 million over the 2000-
2002 period. However, given the flexibility that states have to 
operate the program, this reduction would not be a mandate as 
defined in UMRA.
    Finally, the bill would allow states to use funds from the 
Foster Care and Adoption program for training court personnel. 
CBO estimates that this option would result in greater 
spending, the state portion of which would total about $18 
million over the 2000-2004 period.
    Estimated impact on the private sector: None.
    Estimate prepared by: Federal costs: Sheila Dacey 
(fatherhood and child support), Deborah Kalcevic (student 
loans), Christina Hawley Sadoti (Welfare-to-Work Grants and 
Unemployment Compensation), and Robert Taylor (revenues); 
Impact on state, local, and tribal governments: Leo Lex.
    Estimate approved by: Robert A. Sunshine, Assistant 
Director for Budget Analysis.

 V. OTHER MATTERS REQUIRED TO BE DISCUSSED UNDER THE RULES OF THE HOUSE


          A. Committee Oversight Findings and Recommendations

    In compliance with clause 3(c)(1) of rule XIII of the Rules 
of the House of Representatives, the Committee reports that the 
need for this legislation was confirmed by the oversight 
hearings of the Subcommittee on Human Resources. The hearings 
were as follows:
    The Subcommittee on Human Resources held a hearing on 
October 5, 1999, to receive comments on the Fathers Count Act 
of 1999 (later introduced as H.R. 3073), the bipartisan 
legislation written by Chairman Nancy Johnson and ranking 
member Rep. Ben Cardin. Testimony at the hearing was presented 
by scholars, program administrators, foundation executives, and 
Members of the U.S. House of Representatives and the U.S. 
Senate. The Subcommittee also conducted hearings on April 27, 
1999 and July 30, 1998 on fatherhood programs, which included 
testimony from the Administration, researchers, advocates, 
individuals who have designed and conducted programs for low-
income fathers, and young fathers whose children are on 
welfare.

B. Summary of Findings and Recommendations of the Government Reform and 
                          Oversight Committee

    In compliance with clause 3(c)(4) of rule XIII of the Rules 
of the House of Representatives, the Committee states that no 
oversight findings or recommendations have been submitted to 
the Committee on Government Reform and Oversight regarding the 
subject of the bill.

                 C. Constitutional Authority Statement

    In compliance with clause 3(d)(1) of rule XIII of the Rules 
of the House of Representatives, relating to Constitutional 
Authority, the Committee states that the Committee's action in 
reporting the bill is derived from Article I of the 
Constitution, Section 8 (``The Congress shall have power to lay 
and collect taxes, duties, imposts and excises, to pay the 
debts and to provide for * * * the general Welfare of the 
United States * * *'').

       VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, existing law in which no change 
is proposed is shown in roman):

                  TITLE IV OF THE SOCIAL SECURITY ACT

           *       *       *       *       *       *       *



   PART A--BLOCK GRANTS TO STATES FOR TEMPORARY ASSISTANCE FOR NEEDY 
FAMILIES

           *       *       *       *       *       *       *


SEC. 403. GRANTS TO STATES.

  (a) Grants.--
          (1) Family assistance grant.--
                  (A)  * * *

           *       *       *       *       *       *       *

                  (E) Appropriation.--Out of any money in the 
                Treasury of the United States not otherwise 
                appropriated, there are appropriated for fiscal 
                years 1996, 1997, 1998, 1999, 2000, 2001, and 
                2002 such sums as are necessary for grants 
                under this paragraph, and for fiscal years 2000 
                through 2006, such sums as are necessary to 
                carry out section 403A.

           *       *       *       *       *       *       *

          (5) Welfare-to-work grants.--
                  (A) Formula grants.--
                          (i) Entitlement.--A State shall be 
                        entitled to receive from the Secretary 
                        of Labor a grant for each fiscal year 
                        specified in subparagraph [(I)] (H) of 
                        this paragraph for which the State is a 
                        welfare-to-work State, in an amount 
                        that does not exceed the lesser of--
                                  (I)  * * *

           *       *       *       *       *       *       *

                          (ii) Welfare-to-work state.--A State 
                        shall be considered a welfare-to-work 
                        State for a fiscal year for purposes of 
                        this paragraph if the Secretary of 
                        Labor determines that the State meets 
                        the following requirements:
                                  (I) The State has submitted 
                                to the Secretary of Labor and 
                                the Secretary of Health and 
                                Human Services (in the form of 
                                an addendum to the State plan 
                                submitted under section 402) a 
                                plan which--
                                          (aa)  * * *

           *       *       *       *       *       *       *

                                          (dd) contains 
                                        assurances by the 
                                        Governor of the State 
                                        that the private 
                                        industry council (and 
                                        any alternate agency 
                                        designated by the 
                                        Governor under item 
                                        (ee)) for a service 
                                        delivery area in the 
                                        State will coordinate 
                                        the expenditure of any 
                                        funds provided under 
                                        this subparagraph for 
                                        the benefit of the 
                                        service delivery area 
                                        with the expenditure of 
                                        the funds provided to 
                                        the State under section 
                                        403(a)(1); [and]
                                          (ee) if the Governor 
                                        of the State desires to 
                                        have an agency other 
                                        than a private industry 
                                        council administer the 
                                        funds provided under 
                                        this subparagraph for 
                                        the benefit of 1 or 
                                        more service delivery 
                                        areas in the State, 
                                        contains an application 
                                        to the Secretary of 
                                        Labor for a waiver of 
                                        clause (vii)(I) with 
                                        respect to the area or 
                                        areas in order to 
                                        permit an alternate 
                                        agency designated by 
                                        the Governor to so 
                                        administer the 
                                        funds[.]; and
                                          (ff) describes how 
                                        the State will ensure 
                                        that a private industry 
                                        council to which 
                                        information is 
                                        disclosed pursuant to 
                                        section 403(a)(5)(K) or 
                                        454A(f)(5) has 
                                        procedures for 
                                        safeguarding the 
                                        information and for 
                                        ensuring that the 
                                        information is used 
                                        solely for the purpose 
                                        described in that 
                                        section.

           *       *       *       *       *       *       *

                          (iv) Available amount.--As used in 
                        this subparagraph, the term ``available 
                        amount'' means, for a fiscal year, the 
                        sum of--
                                  (I) 75 percent of the sum 
                                of--
                                          (aa) the amount 
                                        specified in 
                                        subparagraph [(I)] (H) 
                                        for the fiscal year, 
                                        minus the total of the 
                                        amounts reserved 
                                        pursuant to 
                                        subparagraphs (E), (F), 
                                        [(G), and (H)] and (G) 
                                        for the fiscal year; 
                                        and
                                          (bb) any amount 
                                        reserved pursuant to 
                                        subparagraph [(F)] (E) 
                                        for the immediately 
                                        preceding fiscal year 
                                        that has not been 
                                        obligated; and

           *       *       *       *       *       *       *

                  (B) Competitive grants.--
                          (i)  * * *

           *       *       *       *       *       *       *

                          (v) Funding.--For grants under this 
                        subparagraph for each fiscal year 
                        specified in subparagraph [(I)] (H), 
                        there shall be available to the 
                        Secretary of Labor an amount equal to 
                        the sum of--
                                  (I) 25 percent of the sum 
                                of--
                                          (aa) the amount 
                                        specified in 
                                        subparagraph [(I)] (H) 
                                        for the fiscal year, 
                                        minus the total of the 
                                        amounts reserved pursuant to 
                                        subparagraphs (E), (F), [(G), 
                                        and (H)] and (G) for the fiscal 
                                        year; and
                                          (bb) any amount 
                                        reserved pursuant to 
                                        subparagraph [(F)] (E) 
                                        for the immediately 
                                        preceding fiscal year 
                                        that has not been 
                                        obligated; and
                                  (II) any amount available for 
                                grants under this subparagraph 
                                for the immediately preceding 
                                fiscal year that has not been 
                                obligated.
                  (C) Limitations on use of funds.--
                          (i) Allowable activities.--An entity 
                        to which funds are provided under this 
                        paragraph shall use the funds to move 
                        individuals into and keep individuals 
                        in lasting unsubsidized employment by 
                        means of any of the following:
                                  (I)  * * *

           *       *       *       *       *       *       *

                                  (IV) Contracts with public or 
                                private providers of readiness, 
                                placement, and post-employment 
                                services, or if the entity is 
                                not a private industry council 
                                or workforce investment board, 
                                the direct provision of such 
                                services.

           *       *       *       *       *       *       *

                                  (VII) Not more than 6 months 
                                of vocational educational 
                                training.
                        Contracts or vouchers for job placement 
                        services supported by such funds must 
                        require that at least \1/2\ of the 
                        payment occur after an eligible 
                        individual placed into the workforce 
                        has been in the workforce for 6 months.
                          (ii) [Required beneficiaries] Hard-
                        to-employ recipients.--An entity that 
                        operates a project with funds provided 
                        under this paragraph [shall expend at 
                        least 70 percent of all] may expend 
                        funds provided to the project for the 
                        benefit of recipients of assistance 
                        under the program funded under this 
                        part of the State in which the entity 
                        is located[, or for the benefit of 
                        noncustodial parents,] who meet the 
                        requirements of each of the following 
                        subclauses:
                                  (I) [At least 2] Any of the 
                                following [apply] applies to 
                                the recipient [or the 
                                noncustodial parent]:
                                          (aa) The individual 
                                        has not completed 
                                        secondary school or 
                                        obtained a certificate 
                                        of general 
                                        equivalency[, and has 
                                        low skills in reading 
                                        or mathematics].

           *       *       *       *       *       *       *

                                          (dd) The individual 
                                        has English reading, 
                                        writing, or computing 
                                        skills at or below the 
                                        8th grade level, or 
                                        limited proficiency in 
                                        written or spoken 
                                        English.
                                          (ee) The individual 
                                        is homeless.
                                          (ff) The individual 
                                        has a disability.
                                          (gg) The individual 
                                        has been a victim of 
                                        domestic violence.
                                  (II) The recipient [or the 
                                minor children of the non-
                                custodial parent]--
                                          (aa)  * * *

           *       *       *       *       *       *       *

                          (iii) Noncustodial parents.--An 
                        entity that operates a project with 
                        funds provided under this paragraph may 
                        use the funds to provide services in a 
                        form described in clause (i) to 
                        noncustodial parents with respect to 
                        whom the requirements of the following 
                        subclauses are met:
                                  (I) The noncustodial parent 
                                is unemployed, underemployed, 
                                or having difficulty in paying 
                                child support obligations.
                                  (II) At least 1 of the 
                                following applies to a minor 
                                child of the noncustodial 
                                parent (with preference in the 
                                determination of the 
                                noncustodial parents to be 
                                provided services under this 
                                paragraph to be provided by the 
                                entity to those noncustodial 
                                parents with minor children who 
                                meet, or who have custodial 
                                parents who meet, the 
                                requirements of item (aa)):
                                          (aa) The minor child 
                                        or the custodial parent 
                                        of the minor child 
                                        meets the requirements 
                                        of clause (ii)(II).
                                          (bb) The minor child 
                                        is eligible for, or is 
                                        receiving, benefits 
                                        under the program 
                                        funded under this part.
                                          (cc) The minor child 
                                        received benefits under 
                                        the program funded 
                                        under this part in the 
                                        12-month period 
                                        preceding the date of 
                                        the determination but 
                                        no longer receives such 
                                        benefits.
                                          (dd) The minor child 
                                        is eligible for, or is 
                                        receiving, assistance 
                                        under the Food Stamp 
                                        Act of 1977, benefits 
                                        under the supplemental 
                                        security income program 
                                        under title XVI of this 
                                        Act, medical assistance 
                                        under title XIX of this 
                                        Act, or child health 
                                        assistance under title 
                                        XXI of this Act.
                                  (III) In the case of a 
                                noncustodial parent who becomes 
                                enrolled in the project on or 
                                after the date of the enactment 
                                of this clause, the 
                                noncustodial parent is in 
                                compliance with the terms of an 
                                oral or written personal 
                                responsibility contract entered 
                                into among the noncustodial 
                                parent, the entity, and (unless 
                                the entity demonstrates to the 
                                Secretary that the entity is 
                                not capable of coordinating 
                                with such agency) the agency 
                                responsible for administering 
                                the State plan under part D, 
                                which was developed taking into 
                                account the employment and child 
                                support status of the noncustodial 
                                parent, which was entered into not 
                                later than 30 (or, at the option of 
                                the entity, not later than 90) days 
                                after the noncustodial parent was 
                                enrolled in the project, and which, 
                                at a minimum, includes the following:
                                          (aa) A commitment by 
                                        the noncustodial parent 
                                        to cooperate, at the 
                                        earliest opportunity, 
                                        in the establishment of 
                                        the paternity of the 
                                        minor child, through 
                                        voluntary 
                                        acknowledgement or 
                                        other procedures, and 
                                        in the establishment of 
                                        a child support order.
                                          (bb) A commitment by 
                                        the noncustodial parent 
                                        to cooperate in the 
                                        payment of child 
                                        support for the minor 
                                        child, which may 
                                        include a modification 
                                        of an existing support 
                                        order to take into 
                                        account the ability of 
                                        the noncustodial parent 
                                        to pay such support and 
                                        the participation of 
                                        such parent in the 
                                        project.
                                          (cc) A commitment by 
                                        the noncustodial parent 
                                        to participate in 
                                        employment or related 
                                        activities that will 
                                        enable the noncustodial 
                                        parent to make regular 
                                        child support payments, 
                                        and if the noncustodial 
                                        parent has not attained 
                                        20 years of age, such 
                                        related activities may 
                                        include completion of 
                                        high school, a general 
                                        equivalency degree, or 
                                        other education 
                                        directly related to 
                                        employment.
                                          (dd) A description of 
                                        the services to be 
                                        provided under this 
                                        paragraph, and a 
                                        commitment by the 
                                        noncustodial parent to 
                                        participate in such 
                                        services, that are 
                                        designed to assist the 
                                        noncustodial parent 
                                        obtain and retain 
                                        employment, increase 
                                        earnings, and enhance 
                                        the financial and 
                                        emotional contributions 
                                        to the well-being of 
                                        the minor child.
                                In order to protect custodial 
                                parents and children who may be 
                                at risk of domestic violence, 
                                the preceding provisions of 
                                this subclause shall not be 
                                construed to affect any other 
                                provision of law requiring a 
                                custodial parent to cooperate 
                                in establishing the paternity 
                                of a child or establishing or 
                                enforcing a support order with 
                                respect to a child, or 
                                entitling a custodial parent to 
                                refuse, for good cause, to 
                                provide such cooperation as a 
                                condition of assistance or 
                                benefit under any program, 
                                shall not be construed to 
                                require such cooperation by the 
                                custodial parent as a condition 
                                of participation of either 
                                parent in the program 
                                authorized under this 
                                paragraph, and shall not be 
                                construed to require a 
                                custodial parent to cooperate 
                                with or participate in any 
                                activity under this clause. The 
                                entity operating a project 
                                under this clause with funds 
                                provided under this paragraph 
                                shall consult with domestic 
                                violence prevention and 
                                intervention organizations in 
                                the development of the project.
                          [(iii)] (iv) Targeting of hard-to-
                        employ individuals with characteristics 
                        associated with long-term welfare 
                        dependence.--An entity that operates a 
                        project with funds provided under this 
                        paragraph may expend not more than 30 
                        percent of all funds provided to the 
                        project for programs that provide 
                        assistance in a form described in 
                        clause (i)--
                                  (I)  * * *
                                  [(II) to individuals--
                                          [(aa) who are 
                                        noncustodial parents of 
                                        minors whose custodial 
                                        parent is such a 
                                        recipient; and
                                          [(bb) who have such 
                                        characteristics.]
                                  (II) to children--
                                          (aa) who have 
                                        attained 18 years of 
                                        age but not 25 years of 
                                        age; and
                                          (bb) who, before 
                                        attaining 18 years of 
                                        age, were recipients of 
                                        foster care maintenance 
                                        payments (as defined in 
                                        section 475(4)) under 
                                        part E or were in 
                                        foster care under the 
                                        responsibility of a 
                                        State.
                        To the extent that the entity does not 
                        expend such funds in accordance with 
                        the preceding sentence, the entity 
                        shall expend such funds in accordance 
                        with [clause (ii)] clauses (ii) and 
                        (iii) and, as appropriate, clauses (v) 
                        and (vi).
                          [(iv)] (v) Authority to provide work-
                        related services to individuals who 
                        have reached the 5 year limit.--An 
                        entity that operates a project with 
                        funds provided under this paragraph may 
                        use the funds to provide assistance in 
                        a form described in clause (i) of this 
                        subparagraph to, or for the benefit of, 
                        individuals who (but for section 
                        408(a)(7)) would be eligible for 
                        assistance under the program funded 
                        under this part of the State in which 
                        the entity is located.
                          (vi) Custodial parents with income 
                        below poverty line who are not on 
                        welfare.--An entity that operates a 
                        project with funds provided under this 
                        paragraph may use the funds to provide 
                        assistance in a form described in 
                        clause (i) to custodial parents--
                                  (I) whose income is less than 
                                100 percent of the poverty line 
                                (as defined in section 673(2) 
                                of the Omnibus Budget 
                                Reconciliation Act of 1981, 
                                including any revision required 
                                by such section, applicable to 
                                a family of the size involved); 
                                and
                                  (II) who are not otherwise 
                                recipients of assistance under 
                                a State program funded under 
                                this part.
                          [(v)] (vii) Relationship to other 
                        provisions of this part.--
                                  (I) Rules governing use of 
                                funds.--The rules of section 
                                404, other than subsections 
                                (b), (f), and (h) of section 
                                404, shall not apply to a grant 
                                made under this paragraph.
                                  (II) Rules governing payments 
                                to states.--The Secretary of 
                                Labor shall carry out the 
                                functions otherwise assigned by 
                                section 405 to the Secretary of 
                                Health and Human Services with 
                                respect to the grants payable 
                                under this paragraph.
                                  (III) Administration.--
                                Section 416 shall not apply to 
                                the programs under this 
                                paragraph.
                          [(vi)] (viii) Prohibition against use 
                        of grant funds for any other fund 
                        matching requirement.--An entity to 
                        which funds are provided under this 
                        paragraph shall not use any part of the 
                        funds, nor any part of State 
                        expenditures made to match the funds, 
                        to fulfill any obligation of any State, 
                        political subdivision, or private 
                        industry council to contribute funds 
                        under section 403(b) or 418 or any 
                        other provision of this Act or other 
                        Federal law.
                          [(vii)] (ix) Deadline for 
                        expenditure.--An entity to which funds 
                        are provided under this paragraph shall 
                        remit to the Secretary of Labor any 
                        part of the funds that are not expended 
                        within 3 years after the date the funds 
                        are so provided.
                          [(viii)] (x) Regulations.--Within 90 
                        days after the date of the enactment of 
                        this paragraph, the Secretary of Labor, 
                        after consultation with the Secretary 
                        of Health and Human Services and the 
                        Secretary of Housing and Urban 
                        Development, shall prescribe such 
                        regulations as may be necessary to 
                        implement this paragraph.
                          (xi) Reporting requirements.--The 
                        Secretary of Labor, in consultation 
                        with the Secretary of Health and Human 
                        Services, States, and organizations 
                        that represent State or local 
                        governments, shall establish 
                        requirements for the collection and 
                        maintenance of financial and 
                        participant information and the 
                        reporting of such information by 
                        entities carrying out activities under 
                        this paragraph.

           *       *       *       *       *       *       *

                  [(E) Set-aside for successful performance 
                bonus.--
                          [(i) In general.--The Secretary of 
                        Labor shall make a grant in accordance 
                        with this subparagraph to each 
                        successful performance State in fiscal 
                        year 2000.
                          [(ii) Amount of grant.--The Secretary 
                        of Labor shall determine the amount of 
                        the grant payable under this 
                        subparagraph to a successful 
                        performance State, which shall be based 
                        on the score assigned to the State 
                        under clause (iv)(I)(aa) for such prior 
                        period as the Secretary of Labor deems 
                        appropriate.
                          [(iii) Formula for measuring state 
                        performance.--Not later than 1 year 
                        after the date of the enactment of this 
                        paragraph, the Secretary of Labor, in 
                        consultation with the Secretary of 
                        Health and Human Services, the National 
                        Governors' Association, and the 
                        American Public Welfare Association, 
                        shall develop a formula for measuring--
                                  [(I) the success of States in 
                                placing individuals in private 
                                sector employment or in any 
                                kind of employment, through 
                                programs operated with funds 
                                provided under subparagraph 
                                (A);
                                  [(II) the duration of such 
                                placements;
                                  [(III) any increase in the 
                                earnings of such individuals; 
                                and
                                  [(IV) such other factors as 
                                the Secretary of Labor deems 
                                appropriate concerning the 
                                activities of the States with 
                                respect to such individuals.
                        The formula may take into account 
                        general economic conditions on a State-
                        by-State basis.
                          [(iv) Scoring of state performance; 
                        setting of performance thresholds.--
                                  [(I) In general.--The 
                                Secretary of Labor shall--
                                          [(aa) use the formula 
                                        developed under clause 
                                        (iii) to assign a score 
                                        to each State that was 
                                        a welfare-to-work State 
                                        for fiscal years 1998 
                                        and 1999; and
                                          [(bb) prescribe a 
                                        performance threshold 
                                        in such a manner so as 
                                        to ensure that the 
                                        total amount of grants 
                                        to be made under this 
                                        paragraph equals 
                                        $100,000,000.
                                  [(II) Availability of 
                                welfare-to-work data submitted 
                                to the secretary of hhs.--The 
                                Secretary of Health and Human 
                                Services shall provide the 
                                Secretary of Labor with the 
                                data reported by States under 
                                this part with respect to 
                                programs operated with funds 
                                provided under subparagraph 
                                (A).
                          [(v) Successful performance state 
                        defined.--As used in this subparagraph, 
                        the term ``successful performance 
                        State'' means a State whose score 
                        assigned pursuant to clause (iv)(I)(aa) 
                        equals or exceeds the performance 
                        threshold prescribed under clause 
                        (iv)(I)(bb).
                          [(vi) Set-aside.--$100,000,000 of the 
                        amount specified in subparagraph (I) 
                        for fiscal year 1999 shall be reserved 
                        for grants under this subparagraph.]
                  [(F)] (E) Funding for indian tribes.--1 
                percent of the amount specified in subparagraph 
                [(I)] (H) for fiscal year 1998 and of the 
                amount so specified for fiscal year 1999 shall 
                be reserved for grants to Indian tribes under 
                section 412(a)(3).
                  [(G)] (F) Funding for evaluations of welfare-
                to-work programs.--0.6 percent of the amount 
                specified in subparagraph [(I)] (H) for fiscal 
                year 1998 and of the amount so specified for 
                fiscal year 1999 shall be reserved for use by 
                the Secretary to carry out section 413(j).
                  [(H)] (G) Funding for evaluation of 
                abstinence education programs.--
                          (i) In general.--0.2 percent of the 
                        amount specified in subparagraph (I) 
                        for fiscal year 1998 and of the amount 
                        so specified for fiscal year 1999 shall 
                        be reserved for use by the Secretary to 
                        evaluate programs under section 510, 
                        directly or through grants, contracts, 
                        or interagency agreements.
                          (ii) Authority to use funds for 
                        evaluations of welfare-to-work 
                        programs.--Any such amount not required 
                        for such evaluations shall be available 
                        for use by the Secretary to carry out 
                        section 413(j).
                          (iii) Deadline for outlays.--Outlays 
                        from funds used pursuant to clause (i) 
                        for evaluation of programs under 
                        section 510 shall not be made after 
                        fiscal year [2001] 2005.
                          (iv) Interim report.--Not later than 
                        January 1, 2002, the Secretary shall 
                        submit to the Congress a interim report 
                        on the evaluations referred to in 
                        clause (i).
                  [(I)] (H) Appropriations.--
                          (i) In general.--Out of any money in 
                        the Treasury of the United States not 
                        otherwise appropriated, there are 
                        appropriated [$1,500,000,000 for each 
                        of fiscal years 1998 and 1999 for 
                        grants under this paragraph.] for 
                        grants under this paragraph--
                                  (I) $1,500,000,000 for fiscal 
                                year 1998; and
                                  (II) $1,400,000,000 for 
                                fiscal year 1999.
                          (ii) Availability.--The amounts made 
                        available pursuant to clause (i) shall 
                        remain available for such period as is 
                        necessary to make the grants provided 
                        for in this paragraph.
                  [(J)] (I) Worker protections.--
                          (i) Nondisplacement in work 
                        activities.--
                                  (I)  * * *

           *       *       *       *       *       *       *

                  (J) Information disclosure.--If a State to 
                which a grant is made under section 403 
                establishes safeguards against the use or 
                disclosure of information about applicants or 
                recipients of assistance under the State 
                program funded under this part, the safeguards 
                shall not prevent the State agency 
                administering the program from furnishing to a 
                private industry council the names, addresses, 
                telephone numbers, and identifying case number 
                information in the State program funded under 
                this part, of noncustodial parents residing in 
                the service delivery area of the private 
                industry council, for the purpose of 
                identifying and contacting noncustodial parents 
                regarding participation in the program under 
                this paragraph.

           *       *       *       *       *       *       *


SEC. 403A. FATHERHOOD PROGRAMS.

  (a) Purpose.--The purpose of this section is to make grants 
available to public and private entities for projects designed 
to--
          (1) promote marriage through counseling, mentoring, 
        disseminating information about the advantages of 
        marriage, enhancing relationship skills, teaching how 
        to control aggressive behavior, and other methods;
          (2) promote successful parenting through counseling, 
        mentoring, disseminating information about good 
        parenting practices including family planning, training 
        parents in money management, encouraging child support 
        payments, encouraging regular visitation between 
        fathers and their children, and other methods; and
          (3) help fathers and their families avoid or leave 
        cash welfare provided by the program under part A and 
        improve their economic status by providing work first 
        services, job search, job training, subsidized 
        employment, career-advancing education, job retention, 
        job enhancement, and other methods.
  (b) Fatherhood Grants.--
          (1) Applications.--An entity desiring a grant to 
        carry out a project described in subsection (a) may 
        submit to the Secretary an application that contains 
        the following:
                  (A) A description of the project and how the 
                project will be carried out.
                  (B) A description of how the project will 
                address all 3 of the purposes of this section.
                  (C) A written commitment by the entity that 
                the project will allow an individual to 
                participate in the project only if the 
                individual is--
                          (i) a father of a child who is, or 
                        within the past 24 months has been, a 
                        recipient of assistance or services 
                        under a State program funded under this 
                        part;
                          (ii) a father, including an expectant 
                        or married father, whose income (net of 
                        court-ordered child support) is less 
                        than 150 percent of the poverty line 
                        (as defined in section 673(2) of the 
                        Omnibus Budget Reconciliation Act of 
                        1981, including any revision required 
                        by such section, applicable to a family 
                        of the size involved); or
                          (iii) a parent referred to in 
                        paragraph (3)(A)(iii).
                  (D) A written commitment by the entity that 
                the entity will provide for the project, from 
                funds obtained from non-Federal sources, 
                amounts (including in-kind contributions) equal 
                in value to--
                          (i) 20 percent of the amount of any 
                        grant made to the entity under this 
                        subsection; or
                          (ii) such lesser percentage as the 
                        Secretary deems appropriate (which 
                        shall be not less than 10 percent) of 
                        such amount, if the application 
                        demonstrates that there are 
                        circumstances that limit the ability of 
                        the entity to raise funds or obtain 
                        resources.
          (2) Consideration of applications by interagency 
        panels.--
                  (A) First panel.--
                          (i) Establishment.--There is 
                        established a panel to be known as the 
                        ``Fatherhood Grants Recommendations 
                        Panel'' (in this subparagraph referred 
                        to as the ``Panel'').
                          (ii) Membership.--
                                  (I) In general.--The Panel 
                                shall be composed of 10 
                                members, as follows:
                                          (aa) 2 members of the 
                                        Panel shall be 
                                        appointed by the 
                                        Secretary.
                                          (bb) 2 members of the 
                                        Panel shall be 
                                        appointed by the 
                                        Secretary of Labor.
                                          (cc) 2 members of the 
                                        Panel shall be 
                                        appointed by the 
                                        Chairman of the 
                                        Committee on Ways and 
                                        Means of the House of 
                                        Representatives.
                                          (dd) 1 member of the 
                                        Panel shall be 
                                        appointed by the 
                                        ranking minority member 
                                        of the Committee on 
                                        Ways and Means of the 
                                        House of 
                                        Representatives.
                                          (ee) 2 members of the 
                                        Panel shall be 
                                        appointed by the 
                                        Chairman of the 
                                        Committee on Finance of 
                                        the Senate.
                                          (ff) 1 member of the 
                                        Panel shall be 
                                        appointed by the 
                                        ranking minority member 
                                        of the Committee on 
                                        Finance of the Senate.
                                  (II) Conflicts of interest.--
                                An individual shall not be 
                                eligible to serve on the Panel 
                                if such service would pose a 
                                conflict of interest for the 
                                individual.
                                  (III) Timing of 
                                appointments.--The appointment 
                                of members to the Panel shall 
                                be completed not later than 
                                March 1, 2000.
                          (iii) Duties.--
                                  (I) Review and make 
                                recommendations on project 
                                applications.--The Panel shall 
                                review all applications 
                                submitted pursuant to paragraph 
                                (1), and make recommendations 
                                to the Secretary regarding 
                                which applicants should be 
                                awarded grants under this 
                                subsection, with due regard for 
                                the provisions of paragraph 
                                (3), but shall not recommend 
                                that a project be awarded such 
                                a grant if the application 
                                describing the project does not 
                                attempt to meet the requirement 
                                of paragraph (1)(B).
                                  (II) Timing.--The Panel shall 
                                make such recommendations not 
                                later than September 1, 2000.
                          (iv) Term of office.--Each member 
                        appointed to the Panel shall serve for 
                        the life of the Panel.
                          (v) Prohibition on compensation.--
                        Members of the Panel may not receive 
                        pay, allowances, or benefits by reason 
                        of their service on the Panel.
                          (vi) Travel expenses.--Each member of 
                        the Panel shall receive travel 
                        expenses, including per diem in lieu of 
                        subsistence, in accordance with 
                        sections 5702 and 5703 of title 5, 
                        United States Code.
                          (vii) Meetings.--The Panel shall meet 
                        as often as is necessary to complete 
                        the business of the Panel.
                          (viii) Chairperson.--The Chairperson 
                        of the Panel shall be designated by the 
                        Secretary at the time of appointment.
                          (ix) Staff of federal agencies.--The 
                        Secretary may detail any personnel of 
                        the Department of Health and Human 
                        Services and the Secretary of Labor may 
                        detail any personnel of the Department 
                        of Labor to the Panel to assist the 
                        Panel in carrying out its duties under 
                        this subparagraph.
                          (x) Obtaining official data.--The 
                        Panel may secure directly from any 
                        department or agency of the United 
                        States information necessary to enable 
                        it to carry out this subparagraph. On 
                        request of the Chairperson of the 
                        Panel, the head of the department or 
                        agency shall furnish that information 
                        to the Panel.
                          (xi) Mails.--The Panel may use the 
                        United States mails in the same manner 
                        and under the same conditions as other 
                        departments and agencies of the United 
                        States.
                          (xii) Termination.--The Panel shall 
                        terminate on September 1, 2000.
                  (B) Second panel.--
                          (i) Establishment.--Effective January 
                        1, 2001, there is established a panel 
                        to be known as the ``Fatherhood Grants 
                        Recommendations Panel'' (in this 
                        subparagraph referred to as the 
                        ``Panel'').
                          (ii) Membership.--
                                  (I) In general.--The Panel 
                                shall be composed of 10 
                                members, as follows:
                                          (aa) 2 members of the 
                                        Panel shall be 
                                        appointed by the 
                                        Secretary.
                                          (bb) 2 members of the 
                                        Panel shall be 
                                        appointed by the 
                                        Secretary of Labor.
                                          (cc) 2 members of the 
                                        Panel shall be 
                                        appointed by the 
                                        Chairman of the 
                                        Committee on Ways and 
                                        Means of the House of 
                                        Representatives.
                                          (dd) 1 member of the 
                                        Panel shall be 
                                        appointed by the 
                                        ranking minority member 
                                        of the Committee on 
                                        Ways and Means of the 
                                        House of 
                                        Representatives.
                                          (ee) 2 members of the 
                                        Panel shall be 
                                        appointed by the 
                                        Chairman of the 
                                        Committee on Finance of 
                                        the Senate.
                                          (ff) 1 member of the 
                                        Panel shall be 
                                        appointed by the 
                                        ranking minority member 
                                        of the Committee on 
                                        Finance of the Senate.
                                  (II) Conflicts of interest.--
                                An individual shall not be 
                                eligible to serve on the Panel 
                                if such service would pose a 
                                conflict of interest for the 
                                individual.
                                  (III) Timing of 
                                appointments.--The appointment 
                                of members to the Panel shall 
                                be completed not later than 
                                March 1, 2001.
                          (iii) Duties.--
                                  (I) Review and make 
                                recommendations on project 
                                applications.--The Panel shall 
                                review all applications 
                                submitted pursuant to paragraph 
                                (1), and make recommendations 
                                to the Secretary regarding 
                                which applicants should be 
                                awarded grants under this 
                                subsection, with due regard for 
                                the provisions of paragraph 
                                (3), but shall not recommend 
                                that a project be awarded such 
                                a grant if the application 
                                describing the project does not 
                                attempt to meet the requirement 
                                of paragraph (1)(B).
                                  (II) Timing.--The Panel shall 
                                make such recommendations not 
                                later than September 1, 2001.
                          (iv) Term of office.--Each member 
                        appointed to the Panel shall serve for 
                        the life of the Panel.
                          (v) Prohibition on compensation.--
                        Members of the Panel may not receive 
                        pay, allowances, or benefits by reason 
                        of their service on the Panel.
                          (vi) Travel expenses.--Each member of 
                        the Panel shall receive travel 
                        expenses, including per diem in lieu of 
                        subsistence, in accordance with 
                        sections 5702 and 5703 of title 5, 
                        United States Code.
                          (vii) Meetings.--The Panel shall meet 
                        as often as is necessary to complete 
                        the business of the Panel.
                          (viii) Chairperson.--The Chairperson 
                        of the Panel shall be designated by the 
                        Secretary at the time of appointment.
                          (ix) Staff of federal agencies.--The 
                        Secretary may detail any personnel of 
                        the Department of Health and Human 
                        Services and the Secretary of Labor may 
                        detail any personnel of the Department 
                        of Labor to the Panel to assist the 
                        Panel in carrying out its duties under 
                        this subparagraph.
                          (x) Obtaining official data.--The 
                        Panel may secure directly from any 
                        department or agency of the United 
                        States information necessary to enable 
                        it to carry out this subparagraph. On 
                        request of the Chairperson of the 
                        Panel, the head of the department or 
                        agency shall furnish that information 
                        to the Panel.
                          (xi) Mails.--The Panel may use the 
                        United States mails in the same manner 
                        and under the same conditions as other 
                        departments and agencies of the United 
                        States.
                          (xii) Termination.--The Panel shall 
                        terminate on September 1, 2001.
          (3) Matching grants.--
                  (A) Grant awards.--
                          (i) In general.--The Secretary shall 
                        award matching grants, on a competitive 
                        basis, among entities submitting 
                        applications therefor which meet the 
                        requirements of paragraph (1), in 
                        amounts that take into account the 
                        written commitments referred to in 
                        paragraph (1)(D).
                          (ii) Timing.--
                                  (I) First round.--On October 
                                1, 2000, the Secretary shall 
                                award not more than $70,000,000 
                                in matching grants after 
                                considering the recommendations 
                                submitted pursuant to paragraph 
                                (2)(A)(iii)(I).
                                  (II) Second round.--On 
                                October 1, 2001, the Secretary 
                                shall award not more than 
                                $70,000,000 in matching grants 
                                after considering the 
                                recommendations submitted 
                                pursuant to paragraph 
                                (2)(B)(iii)(I).
                          (iii) Nondiscrimination.--The 
                        provisions of this section shall be 
                        applied and administered so as to 
                        ensure that mothers, expectant mothers, 
                        and married mothers are eligible for 
                        benefits and services under projects 
                        awarded grants under this section on 
                        the same basis as fathers, expectant 
                        fathers, and married fathers.
                  (B) Preferences.--In determining which 
                entities to which to award grants under this 
                subsection, the Secretary shall give preference 
                to an entity--
                          (i) to the extent that the 
                        application submitted by the entity 
                        describes actions that the entity will 
                        take that are designed to encourage or 
                        facilitate the payment of child 
                        support, including but not limited to--
                                  (I) obtaining agreements with 
                                the State in which the project 
                                will be carried out under which 
                                the State will exercise its 
                                authority under the last 
                                sentence of section 
                                457(a)(2)(B)(iv) in every case 
                                in which such authority may be 
                                exercised;
                                  (II) obtaining a written 
                                commitment by the agency 
                                responsible for administering 
                                the State plan approved under 
                                part D for the State in which 
                                the project is to be carried 
                                out that the State will 
                                voluntarily cancel child 
                                support arrearages owed to the 
                                State by the father as a result 
                                of the father providing various 
                                supports to the family such as 
                                maintaining a regular child 
                                support payment schedule or 
                                living with his children; and
                                  (III) obtaining a written 
                                commitment by the entity that 
                                the entity will help 
                                participating fathers who 
                                cooperate with the agency in 
                                improving their credit rating;
                          (ii) to the extent that the 
                        application includes written agreements 
                        of cooperation with other private and 
                        governmental agencies, including the 
                        State or local program funded under 
                        this part, the local Workforce 
                        Investment Board, the State or local 
                        program funded under part D, and the 
                        State or local program funded under 
                        part E, which should include a 
                        description of the services each such 
                        agency will provide to fathers 
                        participating in the project described 
                        in the application;
                          (iii) to the extent that the 
                        application describes a project that 
                        will enroll a high percentage of 
                        project participants within 6 months 
                        before or after the birth of the child; 
                        or
                          (iv) to the extent that the 
                        application sets forth clear and 
                        practical methods by which fathers will 
                        be recruited to participate in the 
                        project.
                  (C) Minimum percentage of recipients of grant 
                funds to be nongovernmental (including faith-
                based) organizations.--Not less than 75 percent 
                of the entities awarded grants under this 
                subsection in each fiscal year (other than 
                entities awarded such grants pursuant to the 
                preferences required by subparagraph (B)) shall 
                be awarded to--
                          (i) nongovernmental (including faith-
                        based) organizations; or
                          (ii) governmental organizations that 
                        pass through to organizations referred 
                        to in clause (i) at least 50 percent of 
                        the amount of the grant.
                  (D) Diversity of projects.--
                          (i) In general.--In determining which 
                        entities to which to award grants under 
                        this subsection, the Secretary shall 
                        attempt to achieve a balance among 
                        entities of differing sizes, entities 
                        in differing geographic areas, entities 
                        in urban versus rural areas, and 
                        entities employing differing methods of 
                        achieving the purposes of this section.
                          (ii) Report to the congress.--Within 
                        90 days after each award of grants 
                        under subclause (I) or (II) of 
                        subparagraph (A)(ii), 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 brief report on 
                        the diversity of projectes selected to 
                        receive funds under the grant program. 
                        The report shall include a comparison 
                        of funding for projects located in 
                        urban areas, projects located in 
                        suburban areas, and projects located in 
                        rural areas.
                  (E) Payment of grant in 4 equal annual 
                installments.--During the fiscal year in which 
                a grant is awarded under this subsection and 
                each of the succeeding 3 fiscal years, the 
                Secretary shall provide to the entity awarded 
                the grant an amount equal to \1/4\ of the 
                amount of the grant.
          (4) Use of funds.--
                  (A) In general.--Each entity to which a grant 
                is made under this subsection shall use grant 
                funds provided under this subsection in 
                accordance with the application requesting the 
                grant, the requirements of this subsection, and 
                the regulations prescribed under this 
                subsection, and may use the grant funds to 
                support community-wide initiatives to address 
                the purposes of this section.
                  (B) Nondisplacement.--
                          (i) In general.--An adult in a work 
                        activity described in section 407(d) 
                        which is funded, in whole or in part, 
                        by funds provided under this section 
                        shall not be employed or assigned--
                                  (I) when any other individual 
                                is on layoff from the same or 
                                any substantially equivalent 
                                job; or
                                  (II) if the employer has 
                                terminated the employment of 
                                any regular employee or 
                                otherwise caused an involuntary 
                                reduction of its workforce in 
                                order to fill the vacancy so 
                                created with such an adult.
                          (ii) Grievance procedure.--
                                  (I) In general.--Complaints 
                                alleging violations of clause 
                                (i) in a State may be 
                                resolved--
                                          (aa) if the State has 
                                        established a grievance 
                                        procedure under section 
                                        403(a)(5)(J)(iv), 
                                        pursuant to the 
                                        grievance procedure; or
                                          (bb) otherwise, 
                                        pursuant to the 
                                        grievance procedure 
                                        established by the 
                                        State under section 
                                        407(f)(3).
                                  (II) Forfeiture of grant if 
                                grievance procedure not 
                                available.--If a complaint 
                                referred to in subclause (I) is 
                                made against an entity to which 
                                a grant has been made under 
                                this section with respect to a 
                                project, and the complaint 
                                cannot be brought to, or cannot 
                                be resolved within 90 days 
                                after being brought, by a 
                                grievance procedure referred to 
                                in subclause (I), then the 
                                entity shall immediately return 
                                to the Secretary all funds 
                                provided to the entity under 
                                this section for the project, 
                                and the Secretary shall 
                                immediately rescind the grant.
                  (C) Rule of construction.--This section shall 
                not be construed to require the participation 
                of a father in a project funded under this 
                section to be discontinued by the project on 
                the basis of changed economic circumstances of 
                the father.
                  (D) Rule of construction on marriage.--This 
                section shall not be construed to authorize the 
                Secretary to define marriage for purposes of 
                this section.
                  (E) Penalty for misuse of grant funds.--If 
                the Secretary determines that an entity to 
                which a grant is made under this subsection has 
                used any amount of the grant in violation of 
                subparagraph (A), the Secretary shall require 
                the entity to remit to the Secretary an amount 
                equal to the amount so used, plus all remaining 
                grant funds, and the entity shall thereafter be 
                ineligible for any grant under this subsection.
                  (F) Remittance of unused grant funds.--Each 
                entity to which a grant is awarded under this 
                subsection shall remit to the Secretary all 
                funds paid under the grant that remain at the 
                end of the 5th fiscal year ending after the 
                initial grant award.
          (5) Authority of agencies to exchange information.--
        Each agency administering a program funded under this 
        part or a State plan approved under part D may share 
        the name, address, telephone number, and identifying 
        case number information in the State program funded 
        under this part, of fathers for purposes of assisting 
        in determining the eligibility of fathers to 
        participate in projects receiving grants under this 
        section, and in contacting fathers potentially eligible 
        to participate in the projects, subject to all 
        applicable privacy laws.
          (6) Evaluation.--The Secretary, in consultation with 
        the Secretary of Labor, shall, directly or by grant, 
        contract, or interagency agreement, conduct an 
        evaluation of projects funded under this section (other 
        than under subsection (c)(1)). The evaluation shall 
        assess, among other outcomes selected by the Secretary, 
        effects of the projects on marriage, parenting, 
        employment, earnings, and payment of child support. In 
        selecting projects for the evaluation, the Secretary 
        should include projects that, in the Secretary's 
        judgment, are most likely to impact the matters 
        described in the purposes of this section. In 
        conducting the evaluation, random assignment should be 
        used wherever possible.
          (7) Regulations.--The Secretary shall prescribe such 
        regulations as may be necessary to carry out this 
        subsection.
          (8) Limitation on applicability of other provisions 
        of this part.--Sections 404 through 410 shall not apply 
        to this section or to amounts paid under this section, 
        and shall not be applied to an entity solely by reason 
        of receipt of funds pursuant to this section. A project 
        shall not be considered a State program funded under 
        this part solely by reason of receipt of funds paid 
        under this section.
          (9) Funding.--
                  (A) In general.--
                          (i) Interagency panels.--Of the 
                        amounts made available pursuant to 
                        section 403(a)(1)(E) to carry out this 
                        section for fiscal years 2000 and 2001, 
                        a total of $150,000 shall be made 
                        available for the interagency panels 
                        established by paragraph (2) of this 
                        subsection.
                          (ii) Grants.--Of the amounts made 
                        available pursuant to section 
                        403(a)(1)(E) to carry out this section, 
                        there shall be made available for 
                        grants under this subsection--
                                  (I) $17,500,000 for fiscal 
                                year 2001;
                                  (II) $35,000,000 for each of 
                                fiscal years 2002 through 2004; 
                                and
                                  (III) $17,500,000 for fiscal 
                                year 2005.
                          (iii) Evaluation.--Of the amounts 
                        made available pursuant to section 
                        403(a)(1)(E) to carry out this section 
                        for fiscal years 2000 through 2006, a 
                        total of $6,000,000 shall be made 
                        available for the evaluation required 
                        by paragraph (6) of this subsection.
                  (B) Availability.--
                          (i) Grant funds.--The amounts made 
                        available pursuant to subparagraph 
                        (A)(ii) shall remain available until 
                        the end of fiscal year 2005.
                          (ii) Evaluation funds.--The amounts 
                        made available pursuant to subparagraph 
                        (A)(iii) shall remain available until 
                        the end of fiscal year 2007.
  (c) Fatherhood Projects of National Significance.--
          (1) National clearinghouse.--The Secretary shall 
        award a $5,000,000 grant to a nationally recognized, 
        nonprofit fatherhood promotion organization with at 
        least 4 years of experience in designing and disseminating 
        a national public education campaign, including the production 
        and successful placement of television, radio, and print 
        public service announcements which promote the importance 
        of responsible fatherhood, and with at least 4 years 
        experience providing consultation and training to 
        community-based organizations interested in implementing 
        fatherhood outreach, support, or skill development programs 
        with an emphasis on promoting married fatherhood as the 
        ideal, to--
                  (A) develop, promote, and distribute to 
                interested States, local governments, public 
                agencies, and private nonprofit organizations, 
                including charitable and religious 
                organizations, a media campaign that encourages 
                the appropriate involvement of both parents in 
                the life of any child of the parents, and 
                encourages such organizations to develope or 
                sponsor programs that specifically address the 
                issue of responsible fatherhood and the 
                advantages conferred on children by marriage;
                  (B) develop a national clearinghouse to 
                assist States, communities, and private 
                entities in efforts to promote and support 
                marriage and responsible fatherhood by 
                collecting, evaluating, and making available 
                (through the Internet and by other means) to 
                all interested parties, information regarding 
                media campaigns and fatherhood programs;
                  (C) develop and distribute materials that are 
                for use by entities described in subparagraph 
                (A) or (B) and that help young adults manage 
                their money, develop the knowledge and skills 
                needed to promote successful marriages, plan 
                for future expenditures and investments, and 
                plan for retirement;
                  (D) develop and distribute materials that are 
                for use by entities described in subparagraphs 
                (A) and (B) and that list all the sources of 
                public support for education and training that 
                are available to young adults, including 
                government spending programs as well as 
                benefits under Federal and State tax laws.
          (2) Multicity fatherhood projects.--
                  (A) In general.--The Secretary shall award a 
                $5,000,000 grant to each of 2 nationally 
                recognized nonprofit fatherhood promotion 
                organizations which meet the requirements of 
                subparagraph (B), at least 1 of which 
                organizations meets the requirement of 
                subparagraph (C).
                  (B) Requirements.--The requirements of this 
                subparagraph are the following:
                          (i) The organization must have 
                        several years of experience in 
                        designing and conducting programs that 
                        meet the purposes described in 
                        paragraph (1).
                          (ii) The organization must have 
                        experience in simultaneously conducting 
                        such programs in more than 1 major 
                        metropolitan area and in coordinating 
                        such programs with local government 
                        agencies and private, nonprofit 
                        agencies, including State or local 
                        agencies responsible for conducting the 
                        program under part D and Workfore 
                        Investment Boards.
                          (iii) The organization must submit to 
                        the Secretary an application that meets 
                        all the conditions applicable to the 
                        organization under this section and 
                        that provides for projects to be 
                        conducted in 3 major metropolitan 
                        areas.
                  (C) Use of married couples to deliver 
                services in the inner city.--The requirement of 
                this subparagraph is that the organization has 
                extensive experience in using married couples 
                to deliver program services in the inner city.
          (3) Payment of grants in 4 equal annual 
        installments.--During each of fiscal years 2002 through 
        2005, the Secretary shall provide to each entity 
        awarded a grant under this subsection an amount equal 
        to \1/4\ of the amount of the grant.
          (4) Funding.--
                  (A) In general.--Of the amounts made 
                available pursuant to section 403(a)(1)(E) to 
                carry out this section, $3,750,000 shall be 
                made available for grants under this subsection 
                for each of fiscal years 2002 through 2005.
                  (B) Availability.--The amounts made available 
                pursuant to subparagraph (A) shall remain 
                available until the end of fiscal year 2005.

           *       *       *       *       *       *       *


SEC. 409. PENALTIES.

  (a) In General.--Subject to this section:
          (1)  * * *

           *       *       *       *       *       *       *

          (8) Noncompliance of state child support enforcement 
        program with requirements of part d.--
                  (A) In general.--If the Secretary finds, with 
                respect to a State's program under part D, in a 
                fiscal year beginning on or after October 1, 
                1997--
                          (i)  * * *

           *       *       *       *       *       *       *

                          (III) on the basis of the results of 
                        an audit or audits conducted under 
                        section 452(a)(4)(C) that a State 
                        failed to substantially comply with 1 
                        or more of the requirements of part D 
                        (other than [section 454(24)] paragraph 
                        (24), or subparagraph (A) or (B)(i) of 
                        paragraph (27), of section 454); and

           *       *       *       *       *       *       *


SEC. 411. DATA COLLECTION AND REPORTING.

  (a) Quarterly Reports by States.--
          (1) General reporting requirement.--
                  (A) Contents of report.--Each eligible State 
                shall collect on a monthly basis, and report to 
                the Secretary on a quarterly basis, the 
                following disaggregated case record information 
                on the families receiving assistance under 
                the State program funded under this part (except 
                for information relating to activities carried 
                out under section 403(a)(5)):
                          (i)  * * *

           *       *       *       *       *       *       *


SEC. 412. DIRECT FUNDING AND ADMINISTRATION BY INDIAN TRIBES.

  (a) Grants for Indian Tribes.--
          (1)  * * *

           *       *       *       *       *       *       *

          (3) Welfare-to-work grants.--
                  (A) In general.--The Secretary of Labor shall 
                award a grant in accordance with this paragraph 
                to an Indian tribe for each fiscal year 
                specified in section [403(a)(5)(I)] 
                403(a)(5)(H) for which the Indian tribe is a 
                welfare-to-work tribe, in such amount as the 
                Secretary of Labor deems appropriate, subject 
                to subparagraph (B) of this paragraph.

           *       *       *       *       *       *       *

                  (C) Limitations on use of funds.--
                          (i)  * * *
                          (ii) Waiver authority.--The Secretary 
                        of Labor may waive or modify the 
                        application of a provision of section 
                        403(a)(5)(C) (other than clause [(vii)] 
                        (ix) thereof) with respect to an Indian 
                        tribe to the extent necessary to enable 
                        the Indian tribe to operate a more 
                        efficient or effective program with the 
                        funds provided under this paragraph.

           *       *       *       *       *       *       *


SEC. 414. STUDY BY THE CENSUS BUREAU.

  (a)  * * *
  (b) Appropriation.--Out of any money in the Treasury of the 
United States not otherwise appropriated, there are 
[appropriated $10,000,000 for each of fiscal years 1996, 1997, 
1998, 1999, 2000, 2001, and 2002 for payment to the Bureau of 
the Census to carry out subsection (a).] appropriated--
          (1) $10,000,000 for each of fiscal years 1996 through 
        1999;
          (2) $12,300,000 for fiscal year 2000;
          (3) $17,500,000 for fiscal year 2001;
          (4) $15,500,000 for fiscal year 2002; and
          (5) $4,000,000 for fiscal year 2003.

           *       *       *       *       *       *       *


Part D--Child Support and Establishment of Paternity

           *       *       *       *       *       *       *


                        DUTIES OF THE SECRETARY

  Sec. 452. (a)  * * *

           *       *       *       *       *       *       *

  (m) If the Secretary receives a certification by a State 
agency, in accordance with section 454(32), that an individual 
who is a nonimmigrant alien owes arrearages of child support in 
an amount exceeding $5,000, the Secretary may, at the request 
of the State agency, the Secretary of State, or the Attorney 
General, or on the Secretary's own initiative, provide such 
certification to the Secretary of State and the Attorney 
General information in order to enable them to carry out their 
responsibilities under sections 212(a)(10) and 235(d) of the 
Immigration and Nationality Act.

                     FEDERAL PARENT LOCATOR SERVICE

  Sec. 453. (a)  * * *

           *       *       *       *       *       *       *

  (j) Information Comparisons and Other Disclosures.--
          (1)  * * *

           *       *       *       *       *       *       *

          (6) Information comparisons and disclosure for 
        enforcement of obligations on higher education act 
        loans and grants.--
                  (A) Furnishing of information by the 
                secretary of education.--The Secretary of 
                Education shall furnish to the Secretary, on a 
                quarterly basis or at such less frequent 
                intervals as may be determined by the Secretary 
                of Education, information in the custody of the 
                Secretary of Education for comparison with 
                information in the National Directory of New 
                Hires, in order to obtain the information in 
                such directory with respect to individuals 
                who--
                          (i) are borrowers of loans made under 
                        title IV of the Higher Education Act of 
                        1965 that are in default; or
                          (ii) owe an obligation to refund an 
                        overpayment of a grant awarded under 
                        such title.
                  (B) Requirement to seek minimum information 
                necessary.--The Secretary of Education shall 
                seek information pursuant to this section only 
                to the extent essential to improving collection 
                of the debt described in subparagraph (A).
                  (C) Duties of the secretary.--
                          (i) Information comparison; 
                        disclosure to the secretary of 
                        education.--The Secretary, in 
                        cooperation with the Secretary of 
                        Education, shall compare information in 
                        the National Directory of New Hires 
                        with information in the custody of the 
                        Secretary of Education, and disclose 
                        information in that Directory to the 
                        Secretary of Education, in accordance 
                        with this paragraph, for the purposes 
                        specified in this paragraph.
                          (ii) Condition on disclosure.--The 
                        Secretary shall make disclosures in 
                        accordance with clause (i) only to the 
                        extent that the Secretary determines 
                        that such disclosures do not interfere 
                        with the effective operation of the 
                        program under this part. Support 
                        collection under section 466(b) shall 
                        be given priority over collection of 
                        any defaulted student loan or grant 
                        overpayment against the same income.
                  (D) Use of information by the secretary of 
                education.--The Secretary of Education may use 
                information resulting from a data match 
                pursuant to this paragraph only--
                          (i) for the purpose of collection of 
                        the debt described in subparagraph (A) 
                        owed by an individual whose annualized 
                        wage level (determined by taking into 
                        consideration information from the 
                        National Directory of New Hires) 
                        exceeds $16,000; and
                          (ii) after removal of personal 
                        identifiers, to conduct analyses of 
                        student loan defaults.
                  (E) Disclosure of information by the 
                secretary of education.--
                          (i) Disclosures permitted.--The 
                        Secretary of Education may disclose 
                        information resulting from a data match 
                        pursuant to this paragraph only to--
                                  (I) a guaranty agency holding 
                                a loan made under part B of 
                                title IV of the Higher 
                                Education Act of 1965 on which 
                                the individual is obligated;
                                  (II) a contractor or agent of 
                                the guaranty agency described 
                                in subclause (I);
                                  (III) a contractor or agent 
                                of the Secretary; and
                                  (IV) the Attorney General.
                          (ii) Purpose of disclosure.--The 
                        Secretary of Education may make a 
                        disclosure under clause (i) only for 
                        the purpose of collection of the debts 
                        owed on defaulted student loans, or 
                        overpayments of grants, made under 
                        title IV of the Higher Education Act of 
                        1965.
                          (iii) Restriction on redisclosure.--
                        An entity to which information is 
                        disclosed under clause (i) may use or 
                        disclose such information only as 
                        needed for the purpose of collecting on 
                        defaulted student loans, or 
                        overpayments of grants, made under 
                        title IV of the Higher Education Act of 
                        1965.
                  (F) Reimbursement of hhs costs.--The 
                Secretary of Education shall reimburse the 
                Secretary, in accordance with subsection 
                (k)(3), for the additional costs incurred by 
                the Secretary in furnishing the information 
                requested under this subparagraph.
          (7) Information comparisons and disclosure to assist 
        in administration of unemployment compensation 
        programs.--
                  (A) In general.--If a State agency 
                responsible for the administration of an 
                unemployment compensation program under Federal 
                or State law transmits to the Secretary the 
                name and social security account number of an 
                individual, the Secretary shall, if the 
                information in the National Directory of New 
                Hires indicates that the individual may be 
                employed, disclose to the State agency the name 
                and address of any putative employer of the 
                individual, subject to this paragraph.
                  (B) Condition on disclosure.--The Secretary 
                shall make a disclosure under subparagraph (A) 
                only to the extent that the Secretary 
                determines that the disclosure would not 
                interfere with the effective operation of the 
                program under this part.
                  (C) Use of information.--A State agency may 
                use information provided under this paragraph 
                only for purposes of administering a program 
                referred to in subparagraph (A).

           *       *       *       *       *       *       *


                STATE PLAN FOR CHILD AND SPOUSAL SUPPORT

  Sec. 454. A State plan for child and spousal support must--
          (1)  * * *

           *       *       *       *       *       *       *

          (32)(A) provide that any request for services under 
        this part by a foreign reciprocating country or a 
        foreign country with which the State has an arrangement 
        described in section 459A(d) shall be treated as a 
        request by a State;
          (B) provide, at State option, notwithstanding 
        paragraph (4) or any other provision of this part, for 
        services under the plan for enforcement of a spousal 
        support order not described in paragraph (4)(B) entered 
        by such a country (or subdivision); and
          (C) provide that no applications will be required 
        from, and no costs will be assessed for such services 
        against, the foreign reciprocating country or foreign 
        obligee (but costs may at State option be assessed 
        against the obligor); [and]
          (33) provide that a State that receives funding 
        pursuant to section 428 and that has within its borders 
        Indian country (as defined in section 1151 of title 18, 
        United States Code) may enter into cooperative 
        agreements with an Indian tribe or tribal organization 
        (as defined in subsections (e) and (l) of section 4 of 
        the Indian Self-Determination and Education Assistance 
        Act (25 U.S.C. 450b)), if the Indian tribe or tribal 
        organization demonstrates that such tribe or 
        organization has an established tribal court system or 
        a Court of Indian Offenses with the authority to 
        establish paternity, establish, modify, or enforce 
        support orders, or to enter support orders in 
        accordance with child support guidelines established or 
        adopted by such tribe or organization, under which the 
        State and tribe or organization shall provide for the 
        cooperative delivery of child support enforcement 
        services in Indian country and for the forwarding of 
        all collections pursuant to the functions performed by 
        the tribe or organization to the State agency, or 
        conversely, by the State agency to the tribe or 
        organization, which shall distribute such collections 
        in accordance with such agreement[.]; and
          (34) provide that the State agency will have in 
        effect a procedure for certifying to the Secretary, in 
        such format and accompained by such supporting 
        documentation as the Secretary may require, 
        determinations for purposes of section 452(m) that 
        nonimmigrant aliens owe arrearages of child support in 
        an amount exceeding $5,000.

SEC. 454A. AUTOMATED DATA PROCESSING.

  (a)  * * *

           *       *       *       *       *       *       *

  (f) Information Comparisons and Other Disclosures of 
Information.--The State shall use the automated system required 
by this section to extract information from (at such times, and 
in such standardized format or formats, as may be required by 
the Secretary), to share and compare information with, and to 
receive information from, other data bases and information 
comparison services, in order to obtain (or provide) 
information necessary to enable the State agency (or the 
Secretary or other State or Federal agencies) to carry out this 
part, subject to section 6103 of the Internal Revenue Code of 
1986. Such information comparison activities shall include the 
following:
          (1)  * * *

           *       *       *       *       *       *       *

          (5) Private industry councils receiving welfare-to-
        work grants.--Disclosing to a private industry council 
        (as defined in section 403(a)(5)(D)(ii)) to which funds 
        are provided under section 403(a)(5) the names, 
        addresses, telephone numbers, and identifying case 
        number information in the State program funded under 
        part A, of noncustodial parents residing in the service 
        delivery area of the private industry council, for the 
        purpose of identifying and contacting noncustodial 
        parents regarding participation in the program under 
        section 403(a)(5).

           *       *       *       *       *       *       *


                           PAYMENTS TO STATES

  Sec. 455. (a)(1)  * * *

           *       *       *       *       *       *       *

  (5)(A)(i) If--
          (I) the Secretary determines that a State plan under 
        section 454 would (in the absence of this paragraph) be 
        disapproved for the failure of the State to comply with 
        subparagraphs (A) and (B)(i) of section 454(27), and 
        that the State has made and is continuing to make a 
        good faith effort to so comply; and
          (II) the State has submitted to the Secretary, not 
        later than April 1, 2000, a corrective compliance plan 
        that describes how, by when, and at what cost the State 
        will achieve such compliance, which has been approved 
        by the Secretary,
then the Secretary shall not disapprove the State plan under 
section 454, and the Secretary shall reduce the amount 
otherwise payable to the State under paragraph (1)(A) of this 
subsection for the fiscal year by the penalty amount.
  (ii) All failures of a State during a fiscal year to comply 
with any of the requirements of section 454B shall be 
considered a single failure of the State to comply with 
subparagraphs (A) and (B)(i) of section 454(27) during the 
fiscal year for purposes of this paragraph.
  (B) In this paragraph:
          (i) The term ``penalty amount'' means, with respect 
        to a failure of a State to comply with subparagraphs 
        (A) and (B)(i) of section 454(27)--
                  (I) 4 percent of the penalty base, in the 
                case of the 1st fiscal year in which such a 
                failure by the State occurs (regardless of 
                whether a penalty is imposed in that fiscal 
                year under this paragraph with respect to the 
                failure), except as provided in subparagraph 
                (C)(ii) of this paragraph;
                  (II) 8 percent of the penalty base, in the 
                case of the 2nd such fiscal year;
                  (III) 16 percent of the penalty base, in the 
                case of the 3rd such fiscal year;
                  (IV) 25 percent of the penalty base, in the 
                case of the 4th such fiscal year; or
                  (V) 30 percent of the penalty base, in the 
                case of the 5th or any subsequent such fiscal 
                year.
          (ii) The term ``penalty base'' means, with respect to 
        a failure of a State to comply with subparagraphs (A) 
        and (B)(i) of section 454(27) during a fiscal year, the 
        amount otherwise payable to the State under paragraph 
        (1)(A) of this subsection for the preceding fiscal 
        year.
  (C)(i) The Secretary shall waive all penalties imposed 
against a State under this paragraph for any failure of the 
State to comply with subparagraphs (A) and (B)(i) of section 
454(27) if the Secretary determines that, before April 1, 2000, 
the State has achieved such compliance.
  (ii) If a State with respect to which a reduction is required 
to be made under this paragraph with respect to a failure to 
comply with subparagraphs (A) and (B)(i) of section 454(27) 
achieves such compliance on or after April 1, 2000, and on or 
before September 30, 2000, then the penalty amount applicable 
to the State shall be 1 percent of the penalty base with 
respect to the failure involved.
  (D) The Secretary may not impose a penalty under this 
paragraph against a State for a fiscal year for which the 
amount otherwise payable to the State under paragraph (1)(A) of 
this subsection is reduced under paragraph (4) of this 
subsection for failure to comply with section 454(24)(A).

           *       *       *       *       *       *       *


SEC. 457. DISTRIBUTION OF COLLECTED SUPPORT.

  (a) In General.--Subject to subsections (e) and (f), an 
amount collected on behalf of a family as support by a State 
pursuant to a plan approved under this part shall be 
distributed as follows:
          (1)  * * *

           *       *       *       *       *       *       *

          (2) Families that formerly received assistance.--In 
        the case of a family that formerly received assistance 
        from the State:
                  (A)  * * *
                  (B) Payments of arrearages.--To the extent 
                that the amount so collected exceeds the amount 
                required to be paid to the family for the month 
                in which collected, the State shall distribute 
                the amount so collected as follows:
                          (i)  * * *

           *       *       *       *       *       *       *

                          (iv) Amounts collected pursuant to 
                        section 464.--Notwithstanding any other 
                        provision of this section (except the 
                        last sentence of this clause), any 
                        amount of support collected pursuant to 
                        section 464 shall be retained by the 
                        State to the extent past-due support 
                        has been assigned to the State as a 
                        condition of receiving assistance from 
                        the State, up to the amount necessary 
                        to reimburse the State for amounts paid 
                        to the family as assistance by the 
                        State. The State shall pay to the 
                        Federal Government the Federal share of 
                        the amounts so retained. To the extent 
                        the amount collected pursuant to 
                        section 464 exceeds the amount so 
                        retained, the State shall distribute 
                        the excess to the family. 
                        Notwithstanding the preceding sentences 
                        of this clause, if the amount is 
                        collected on behalf of a family that 
                        includes a child of a participant in a 
                        project funded under section 403A and 
                        that has ceased to receive cash 
                        payments under a State program funded 
                        under section 403, then the State may 
                        distribute the amount collected 
                        pursuant to section 464 to the family, 
                        and the aggregate of the amounts 
                        otherwise required by this section to 
                        be paid by the State to the Federal 
                        government shall be reduced by an 
                        amount equal to the State share of the 
                        amount collected pursuant to section 
                        464 that would otherwise be retained as 
                        reimbursement for assistance paid to 
                        the family.

           *       *       *       *       *       *       *


Part E--Federal Payments for Foster Care and Adoption Assistance

           *       *       *       *       *       *       *



                      ADOPTION ASSISTANCE PROGRAM

  Sec. 473. (a)(1)  * * *

           *       *       *       *       *       *       *

  (6)(A)  * * *
  (B) A State's payment of nonrecurring adoption expenses under 
an adoption assistance agreement shall be treated as an 
expenditure made for the proper and efficient administration of 
the State plan for purposes of section [474(a)(3)(E)] 
474(a)(3)(F).

           *       *       *       *       *       *       *


                PAYMENTS TO STATES; ALLOTMENTS TO STATES

  Sec. 474. (a) For each quarter beginning after September 30, 
1980, each State which has a plan approved under this part 
shall be entitled to a payment equal to the sum of--
          (1)  * * *

           *       *       *       *       *       *       *

          (3) an amount equal to the sum of the following 
        proportions of the total amounts expended during such 
        quarter as found necessary by the Secretary for the 
        provision of child placement services and for the 
        proper and efficient administration of the State plan--
                  (A)  * * *

           *       *       *       *       *       *       *

                  (C) 75 percent of so much of such 
                expenditures as are for the short-term training 
                (including cross-training with personnel 
                employed by, or under contract with, the State 
                or local agency administering the plan in the 
                political subdivision, training on topics 
                relevant to the legal representation of clients 
                in proceedings conducted by or under the 
                supervision of an abuse and neglect court, and 
                training on related topics such as child 
                development and the importance of achieving 
                safety, permanency, and well-being for a child) 
                of judges, judicial personnel, law enforcement 
                personnel, agency attorneys, attorneys 
                representing a parent in proceedings conducted 
                by, or under the supervision of, an abuse and 
                neglect court, attorneys representing a child 
                in such proceedings, guardians ad litem, and 
                volunteers who participate in court-appointed 
                special advocate programs, to the extent the 
                training is related to the court's role in 
                expediting adoption procedures, implementing 
                reasonable efforts, and providing for timely 
                permanency planning and case reviews, except 
                that any such training shall be offered by the 
                State or local agency administering the plan, 
                either directly or through contract, in 
                collaboration with the appropriate judicial 
                governing body operating in the State,
                  [(C)] (D) 50 percent of so much of such 
                expenditures as are for the planning, design, 
                development, or installation of statewide 
                mechanized data collection and information 
                retrieval systems (including 50 percent of the 
                full amount of expenditures for hardware 
                components for such systems) but only to the 
                extent that such systems--
                          (i)  * * *

           *       *       *       *       *       *       *

                  [(D)] (E) 50 percent of so much of such 
                expenditures as are for the operation of the 
                statewide mechanized data collection and 
                information retrieval systems referred to in 
                subparagraph [(C)] (D); and
                  [(E)] (F) one-half of the remainder of such 
                expenditures; plus

           *       *       *       *       *       *       *

  (c) Automated Data Collection Expenditures.--The Secretary 
shall treat as necessary for the proper and efficient 
administration of the State plan all expenditures of a State 
necessary in order for the State to plan, design, develop, 
install, and operate data collection and information retrieval 
systems described in subsection [(a)(3)(C)] (a)(3)(D), without 
regard to whether the systems may be used with respect to 
foster or adoptive children other thanthose on behalf of whom 
foster care maintenance payments or adoption assistance payments may be 
made under this part.

           *       *       *       *       *       *       *


                              DEFINITIONS

  Sec. 475. As used in this part or part B of this title:
          (1)  * * *

           *       *       *       *       *       *       *

          (8) The term ``abuse and neglect courts'' means the 
        State and local courts that carry out State or local 
        laws requiring proceedings (conducted by or under the 
        supervision of the courts)--
                  (A) that implement part B or this part, 
                including preliminary disposition of such 
                proceedings;
                  (B) that determine whether a child was abused 
                or neglected;
                  (C) that determine the advisability or 
                appropriateness of placement in a family foster 
                home, group home, or a special residential care 
                facility; or
                  (D) that determine any other legal 
                disposition of a child in the abuse and neglect 
                court system.
          (9) The term ``agency attorney'' means an attorney or 
        other individual, including any government attorney, 
        district attorney, attorney general, State attorney, 
        county attorney, city solicitor or attorney, 
        corporation counsel, or privately retained special 
        prosecutor, who represents the State or local agency 
        administrating the programs under part B and this part 
        in a proceeding conducted by, or under the supervision 
        of, an abuse and neglect court, including a proceeding 
        for termination of parental rights.
          (10) The term ``attorney representing a child'' means 
        an attorney or a guardian ad litem who represents a 
        child in a proceeding conducted by, or under the 
        supervision of, an abuse and neglect court.
          (11) The term ``attorney representing a parent'' 
        means an attorney who represents a parent who is an 
        official party to a proceeding conducted by, or under 
        the supervision of, an abuse and neglect court.

           *       *       *       *       *       *       *

                              ----------                              


    SECTION 104 OF THE PERSONAL RESPONSIBILITY AND WORK OPPORTUNITY 
                      RECONCILIATION ACT OF 1996

           *       *       *       *       *       *       *


SEC. 104. SERVICES PROVIDED BY CHARITABLE, RELIGIOUS, OR 
                    PRIVATE ORGANIZATIONS.

  (a)  * * *

           *       *       *       *       *       *       *

  (l) Notwithstanding the preceding provisions of this section, 
this section shall apply to any entity to which funds have been 
provided under section 403A of the Social Security Act in the 
same manner in which this section applies to States, and, for 
purposes of this section, any project for which such funds are 
so provided shall be considered a program described in 
subsection (a)(2).

           *       *       *       *       *       *       *

                              ----------                              


SECTION 402 OF THE CHILD SUPPORT PERFORMANCE AND INCENTIVE ACT OF 1998

           *       *       *       *       *       *       *


SEC. 402. SAFEGUARD OF NEW EMPLOYEE INFORMATION.

  (a) Penalty for Unauthorized Access, Disclosure, or Use of 
Information.--Section 453(l) of the Social Security Act (42 
U.S.C. 653(l)) is amended--
          (1)  * * *
          (2) by adding at the end the following:
          ``(2) Penalty for misuse of information in the 
        national directory of new hires.--The Secretary shall 
        require the imposition of an administrative penalty (up 
        to and including dismissal from employment), and a fine 
        of $1,000, for each act of unauthorized access to, 
        disclosure of, or use of, information in the National 
        Directory of New Hires established under subsection (i) 
        by any officer or employee of the United States or any 
        other person who knowingly and willfully violates this 
        paragraph.''.

           *       *       *       *       *       *       *

                              ----------                              


            TITLE II OF THE IMMIGRATION AND NATIONALITY ACT

           *       *       *       *       *       *       *


                        TITLE II--IMMIGRATION

           *       *       *       *       *       *       *


 Chapter 2--Qualifications for Admission of Aliens; Travel Control of 
Citizens and Aliens

           *       *       *       *       *       *       *


 general classes of aliens ineligible to receive visas and ineligible 
               for admission; waivers of inadmissibility

      Sec. 212. (a) Classes of Aliens Ineligible for Visas or 
Admission.--Except as otherwise provided in this Act, aliens 
who are inadmissible under the following paragraphs are 
ineligible to receive visas and ineligible to be admitted to 
the United States:
          (1)  * * *

           *       *       *       *       *       *       *

          (10) Miscellaneous.--
                  (A)  * * *

           *       *       *       *       *       *       *

                  (F) Nonpayment of child support.--
                          (i) In general.--Any alien is 
                        inadmissible who is legally obligated 
                        under a judgment, decree, or order to 
                        pay child support (as defined in 
                        section 459(i) of the Social Security 
                        Act), and whose failure to pay such 
                        child support has resulted in an 
                        arrearage exceeding $5,000, until child 
                        support payments under the judgment, 
                        decree, or order are satisfied or the 
                        alien is in compliance with an approved 
                        payment agreement.
                          (ii) Waiver authorized.--The Attorney 
                        General may waive the application of 
                        clause (i) in the case of an alien, if 
                        the Attorney General--
                                  (I) has received a request 
                                for the waiver from the court 
                                or administrative agency having 
                                jurisdiction over the judgment, 
                                decree, or order obligating the 
                                alien to pay child support that 
                                is referred to in such clause; 
                                or
                                  (II) determines that there 
                                are prevailing humanitarian or 
                                public interest concerns.

           *       *       *       *       *       *       *


   Chapter 4--Inspection, Apprehension, Examination, Exclusion, and 
Removal

           *       *       *       *       *       *       *


 inspection by immigration officers; expedited removal of inadmissible 
                 arriving aliens; referral for hearing

  Sec. 235. (a)  * * *

           *       *       *       *       *       *       *

  (d) Authority Relating to Inspections.--
          (1)  * * *

           *       *       *       *       *       *       *

          (5) Authority to serve process in child support 
        cases.--
                  (A) In general.--To the extent consistent 
                with State law, immigration officers are 
                authorized to serve on any alien who is an 
                applicant for admission to the United States 
                legal process with respect to any action to 
                enforce or establish a legal obligation of an 
                individual to pay child support (as defined in 
                section 459(i) of the Social Security Act).
                  (B) Definition.--For purposes of subparagraph 
                (A), the term ``legal process'' means any writ, 
                order, summons or other similar process, which 
                is issued by--
                          (i) a court or an administrative 
                        agency of competent jurisdiction in any 
                        State, territory, or possession of the 
                        United States; or
                          (ii) an authorized official pursuant 
                        to an order of such a court or agency 
                        or pursuant to State or local law.