ACTION

FROM THE COMMITTEE ON WAYS AND MEANS

DESCRIPTION OF H.R. 4678 AS APPROVED:

The bill would provide more child support money to families leaving welfare, simplify the rules governing the assignment and distribution of child support collected by States, improve the collection of child support, authorize demonstration programs on encouraging public and private agencies to help collect child support, and implement a fatherhood grant program to promote marriage, encourage successful parenting, and help fathers find jobs and increase their earnings.

TITLE I: Distribution of Child Support

Rights to child support payments during the time a family is on welfare would be assigned to the State; child support rights during the time a family is off welfare would be assigned to the family. When families are on welfare, the State would keep child support payments (and split them with the Federal Government); when families are off welfare, all child support, including payments on past-due child support, would be paid to the family until the family has been paid all that has been assigned to them. Only when the family has been completely repaid would the State be able to retain (and split with the Federal Government) child support payments on past-due support that has been assigned to the State. While families are on welfare, States would have the option of sharing collections with the family, although States would still be responsible for paying the Federal share.

TITLE II: Review and Adjustment of Child Support Orders

Child support orders that are being enforced by the State program would be reviewed and updated every three years. When a family leaves welfare, the State child support enforcement agency would take actions to get child support payments started, and also review and adjust the child support order if it has not been updated during the previous year.

TITLE III: Expanded Information and Enforcement

Guidelines would be developed by the Secretary of the U.S. Department of Health and Human Services (HHS) for involvement of public non-IV-D and private agencies in child support enforcement, and a report containing recommendations for the States to use in their oversight of these agencies would be issued. The U.S. General Accounting Office would be required to report to Congress on private companies now involved in child support collections. After these reports, the Secretary of HHS would be required to approve up to10 demonstration programs by States with respect to public non-IV-D agencies. Beginning on October 1, 2003, the Secretary would be required to approve up to three demonstration programs by States with respect to private entities. In both cases, the Secretary would require States to sign a written agreement that covers privacy safeguards, data security, due process rights, automated systems, liability, fees, and other issues.

TITLE IV: Expanded Enforcement

The bill would improve the collection of child support by decreasing the past-due amount that triggers passport denial to $2,500 from $5,000, and expanding the tax refund intercept program so it can be used to collect past-due child support on behalf of a child who is no longer a minor.

TITLE V: Fatherhood Programs

A fatherhood grant program would be established. To be eligible for grants, public and private projects would present detailed information on how they would work with poor and low-income fathers to achieve three purposes: promote marriage, promote successful parenting, and promote better jobs for poor fathers.

A bipartisan panel, appointed by the Administration and by Congress, would be established to review applications and make recommendations to the Secretary regarding which applicants should be awarded grants. About $140 million for these projects would be available. Not less than 75 percent of the funded entities would be non-governmental (including faith-based) organizations. The Secretary would ensure a balance of projects along several dimensions. Fathers participating in project work activities would be prohibited from filling a job vacancy if any individual is on a 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.

For the fatherhood grant program for fiscal years 2001 through 2007, $140 million would be appropriated. The charitable choice provision of the welfare reform law of 1996 (P.L. 104-193) would apply to these fatherhood grants; this provision allows States to contract with charitable, religious, or private organizations to deliver services.

In addition, a national clearinghouse of information about fatherhood programs and a multi-city fatherhood demonstration project would be established.

Non-profit fatherhood organizations eligible to apply for one of the two $5 million multi-city fatherhood project grants would be required to have several years of experience in designing and conducting fatherhood programs; experience in conducting fatherhood projects in more than one major city, and experience in coordinating programs with local government agencies and private, nonprofit agencies. One of the fatherhood organizations would be required to have extensive experience in using married couples to deliver their program in the inner-city.

TITLE VI: Miscellaneous

The time that funds can be spent on the evaluation of the Abstinence Education Program would be extended through 2005. State Employment Security Agencies would be allowed to use information in the Federal Directory of New Hires to help administer unemployment programs. Non-citizens who owe more than $2,500 in child support to American citizens would be denied visas and residency in the United States. A non-immigrant alien owing more than $2,500 in past-due child support would be reported to the Secretary of the U.S. Department of State and the Attorney General for enforcement purposes. The Welfare-to-Work high performance bonus would be repealed.

HR 4678 IH

To provide more child support money to families leaving welfare, to simplify the rules governing the assignment and distribution of child support collected by States on behalf of children, to improve the collection of child support, to promote marriage, and for other purposes.

To provide more child support money to families leaving welfare, to simplify the rules governing the assignment and distribution of child support collected by States on behalf of children, to improve the collection of child support, to promote marriage, and for other purposes.

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

SECTION 1. SHORT TITLE.

This Act may be cited as the `Child Support Distribution Act of 2000'.

SEC. 2. TABLE OF CONTENTS.

The table of contents for this Act is as follows:

Sec. 1. Short title.

Sec. 2. Table of contents.

TITLE I--DISTRIBUTION OF CHILD SUPPORT

Sec. 101. Distribution of child support collected by States on behalf of children receiving certain welfare benefits.

TITLE II--REVIEW AND ADJUSTMENT OF CHILD SUPPORT ORDERS

Sec. 201. Mandatory review and modification of child support orders for TANF recipients.

TITLE III--EXPANDED INFORMATION AND ENFORCEMENT

Sec. 301. Guidelines for involvement of public non-IV-D and private agencies in child support enforcement.

Subtitle A--State Option to Provide Information and Enforcement Mechanisms to Public Non-IV-D Child Support Enforcement Agencies

Sec. 311. Establishment and enforcement of child support obligations by public non-IV-D child support enforcement agencies.

Sec. 312. Use of certain enforcement mechanisms.

Sec. 313. Effective date.

Subtitle B--State Option to Provide Information and Enforcement Mechanisms to Private Child Support Enforcement Agencies

Sec. 321. Establishment and enforcement of child support obligations by private child support enforcement agencies.

Sec. 322. Use of certain enforcement mechanisms.

Sec. 323. Effective date.

TITLE IV--EXPANDED ENFORCEMENT

Sec. 401. Decrease in amount of child support arrearage triggering passport denial.

Sec. 402. Use of tax refund intercept program to collect past-due child support on behalf of children who are not minors.

TITLE V--FATHERHOOD PROGRAMS

Subtitle A--Fatherhood Grant Program

Sec. 501. Fatherhood grants.

Subtitle B--Fatherhood Projects of National Significance

Sec. 511. Fatherhood projects of national significance.

TITLE VI--MISCELLANEOUS

Sec. 601. Change dates for abstinence evaluation.

Sec. 602. Report on undistributed child support payments.

Sec. 603. Use of new hire information to assist in administration of unemployment compensation programs.

Sec. 604. Immigration provisions.

Sec. 605. Correction of errors in conforming amendments in the Welfare-To-Work and Child Support Amendments of 1999.

Sec. 606. Elimination of set-aside of welfare-to-work funds for successful performance bonus.

TITLE VII--EFFECTIVE DATE

Sec. 701. Effective date.

SEC. 101. DISTRIBUTION OF CHILD SUPPORT COLLECTED BY STATES ON BEHALF OF CHILDREN RECEIVING CERTAIN WELFARE BENEFITS.

(a) MODIFICATION OF RULE REQUIRING ASSIGNMENT OF SUPPORT RIGHTS AS A CONDITION OF RECEIVING TANF- Section 408(a)(3) of the Social Security Act (42 U.S.C. 608(a)(3)) is amended to read as follows:

`(3) NO ASSISTANCE FOR FAMILIES NOT ASSIGNING CERTAIN SUPPORT RIGHTS TO THE STATE- A State to which a grant is made under section 403 shall require, as a condition of providing assistance to a family under the State program funded under this part, that a member of the family assign to the State any rights the family member may have or acquire (on behalf of the family member or of any other person for whom the family member has applied for or is receiving such assistance) to support from any other person for any period for which the family receives assistance under the program, in an amount equal to the lesser of--

`(A) the number of months for which the family receives or has received assistance from the State (within the meaning of section 457) and for which there is in effect a support order on behalf of the family member or such other person, multiplied by the amount of monthly support awarded by the order; or

`(B) the total amount of assistance so provided to the family.'.

(b) INCREASING CHILD SUPPORT PAYMENTS TO FAMILIES AND SIMPLIFYING CHILD SUPPORT DISTRIBUTION RULES-

(1) DISTRIBUTION RULES-

(A) IN GENERAL- Section 457(a) of such Act (42 U.S.C. 657(a)) is amended to read as follows:

`(a) IN GENERAL- Subject to subsections (d) and (e), the amounts 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) FAMILIES RECEIVING ASSISTANCE- In the case of a family receiving assistance from the State, the State shall--

`(A) pay to the Federal Government the Federal share of the amount collected, subject to paragraph (3)(A);

`(B) retain, or pay to the family, the State share of the amount collected, subject to paragraph (3)(B); and

`(C) pay to the family any remaining amount.

`(2) FAMILIES THAT FORMERLY RECEIVED ASSISTANCE- In the case of a family that formerly received assistance from the State:

`(A) CURRENT SUPPORT- To the extent that the amount collected does not exceed the current support amount, the State shall pay the amount to the family.

`(B) ARREARAGES- To the extent that the amount collected exceeds the current support amount, the State--

`(i) shall first pay to the family the excess amount, to the extent necessary to satisfy support arrearages not assigned pursuant to section 408(a)(3);

`(ii) if the amount collected exceeds the amount required to be paid to the family under clause (i), shall--

`(I) pay to the Federal Government, the Federal share of the excess amount described in this clause, subject to paragraph (3)(A); and

`(II) retain, or pay to the family, the State share of the excess amount described in this clause, subject to paragraph (3)(B); and

`(iii) shall pay to the family any remaining amount.

`(3) LIMITATIONS-

`(A) FEDERAL REIMBURSEMENTS- The total of the amounts paid by the State to the Federal Government under paragraphs (1) and (2) of this subsection with respect to a family shall not exceed the Federal share of the amount assigned with respect to the family pursuant to section 408(a)(3).

`(B) STATE REIMBURSEMENTS- The total of the amounts retained by the State under paragraphs (1) and (2) of this subsection with respect to a family shall not exceed the State share of the amount assigned with respect to the family pursuant to section 408(a)(3).

`(4) FAMILIES THAT NEVER RECEIVED ASSISTANCE- In the case of any other family, the State shall pay the amount collected to the family.

`(5) FAMILIES UNDER CERTAIN AGREEMENTS- Notwithstanding paragraphs (1) through (4), in the case of an amount collected for a family in accordance with a cooperative agreement under section 454(33), the State shall distribute the amount collected pursuant to the terms of the agreement.

`(6) STATE FINANCING OPTIONS- To the extent that the State share of the amount payable to a family for a month pursuant to paragraph (2)(B) of this subsection exceeds the amount that the State estimates (under procedures approved by the Secretary) would have been payable to the family for the month pursuant to former section 457(a)(2) (as in effect for the State immediately before the date this subsection first applies to the State) if such former section had remained in effect, the State may elect to use the grant made to the State under section 403(a) to pay the amount, or to have the payment considered a qualified State expenditure for purposes of section 409(a)(7), but not both. For purposes of section 455, any such payment from the grant made to the State under section 403(a) shall be considered an amount expended for the operation of the plan approved under section 454.'.

(B) APPROVAL OF ESTIMATION PROCEDURES- Not later than October 1, 2001, the Secretary of Health and Human Services, in consultation with the States (as defined for purposes of part D of title IV of the Social Security Act), shall establish the procedures to be used to make the estimate described in section 457(a)(6) of such Act.

(2) CURRENT SUPPORT AMOUNT DEFINED- Section 457(c) of such Act (42 U.S.C. 657(c)) is amended by adding at the end the following:

`(5) CURRENT SUPPORT AMOUNT- The term `current support amount' means, with respect to amounts collected as support on behalf of a family, the amount designated as the monthly support obligation of the noncustodial parent in the order requiring the support.'.

(3) CONVERSION OF PERMANENTLY ASSIGNED CHILD SUPPORT OBLIGATIONS- Section 457(b) of such Act (42 U.S.C. 657(b)) is amended by inserting `until October 1, 2007 (or such earlier date as the State may select)' before the period.

(c) BAN ON RECOVERY OF MEDICAID COSTS FOR CERTAIN BIRTHS- Section 454 of such Act (42 U.S.C. 654) is amended--

(1) by striking `and' at the end of paragraph (32);

(2) by striking the period at the end of paragraph (33) and inserting `; and'; and

(3) by inserting after paragraph (33) the following:

`(34) provide that the State shall not use the State program operated under this part to collect any amount owed to the State by reason of costs incurred under the State plan approved under title XIX for the birth of a child for whom support rights have been assigned pursuant to section 408(a)(3), 471(a)(17), or 1912.'.

(d) CONFORMING AMENDMENTS-

(1) Section 409(a)(7)(B)(i)(I)(aa) of such Act (42 U.S.C. 609(a)(7)(B)(i)(I)(aa)) is amended by striking `457(a)(1)(B)' and inserting `457(a)(1)(B)(ii)'.

(2) Section 404(a) of such Act (42 U.S.C. 604(a)) is amended--

(A) by striking `or' at the end of paragraph (1);

(B) by striking the period at the end of paragraph (2) and inserting `; or'; and

(C) by adding at the end the following:

`(3) to fund payment of an amount pursuant to section 457(a)(2)(B)(i), but only to the extent that the State properly elects under section 457(a)(6) to use the grant to fund the payment.'.

(3) Section 409(a)(7)(B)(i) of such Act (42 U.S.C. 609(a)(7)(B)(i)) is amended by adding at the end the following:

`(V) PORTIONS OF CERTAIN CHILD SUPPORT PAYMENTS COLLECTED ON BEHALF OF AND DISTRIBUTED TO FAMILIES NO LONGER RECEIVING ASSISTANCE- Any amount paid by a State pursuant to section 457(a)(2)(B)(i), but only to the extent that the State properly elects under section 457(a)(6) to have the payment considered a qualified State expenditure.'.

(e) EFFECTIVE DATE-

(1) IN GENERAL- The amendments made by this section shall take effect on October 1, 2005, and shall apply to payments under parts A and D of title IV of the Social Security Act for calendar quarters beginning on or after such date, and without regard to whether regulations to implement such amendments (in the case of State programs operated under such part D) are promulgated by such date.

(2) STATE OPTION TO ACCELERATE EFFECTIVE DATE- In addition, a State may elect to have the amendments made by this section apply to the State and to amounts collected by the State, on and after such date as the State may select that is after the date of the enactment of this Act and before October 1, 2005.

SEC. 201. MANDATORY REVIEW AND MODIFICATION OF CHILD SUPPORT ORDERS FOR TANF RECIPIENTS.

(a) REVIEW EVERY 3 YEARS- Section 466(a)(10)(A)(i) of the Social Security Act (42 U.S.C. 666(a)(10)(A)(i)) is amended--

(1) by striking `or,' and inserting `or'; and

(2) by striking `upon the request of the State agency under the State plan or of either parent,'.

(b) REVIEW UPON LEAVING TANF-

(1) NOTICE OF CERTAIN FAMILIES LEAVING TANF- Section 402(a) of such Act (42 U.S.C. 602(a)) is amended by adding at the end the following:

`(8) CERTIFICATION THAT THE CHILD SUPPORT ENFORCEMENT PROGRAM WILL BE PROVIDED NOTICE OF CERTAN FAMILIES LEAVING TANF PROGRAM- A certification by the chief executive officer of the State that the State has established procedures to ensure that the State agency administering the child support enforcement program under the State plan approved under part D will be provided notice of the impending discontinuation of assistance to an individual under the State program funded under this part if the individual has custody of a child whose other parent is alive and not living at home with the child.'.

(2) REVIEW- Section 466(a)(10) of such Act (42 U.S.C. 666(a)(10)) is amended--

(A) in the paragraph heading, by striking `UPON REQUEST';

(B) in subparagraph (C), by striking `this paragraph' and inserting `subparagraph (A) or (B)'; and

(C) by adding at the end the following:

`(D) REVIEW UPON LEAVING TANF- On receipt of a notice issued pursuant to section 402(a)(8), the State child support enforcement agency shall--

`(i) examine the case file involved;

`(ii) determine what actions (if any) are needed to locate any noncustodial parent, establish paternity or a support order, or enforce a support order in the case;

`(iii) immediately take the actions; and

`(iv) if there is a support order in the case which the State has not reviewed during the 1-year period ending with receipt of the notice, notwithstanding subparagraph (B), review and, if appropriate, adjust the order in accordance with subparagraph (A).'.

SEC. 301. GUIDELINES FOR INVOLVEMENT OF PUBLIC NON-IV-D AND PRIVATE AGENCIES IN CHILD SUPPORT ENFORCEMENT.

(a) IN GENERAL- The Secretary of Health and Human Services, in consultation with States (as defined for purposes of part D of title IV of the Social Security Act), local governments, and individuals or companies knowledgable about involving entities, other than State agencies operating child support enforcement programs under such part, in child support enforcement, shall develop separate sets of recommendations which address the participation of public non-IV-D child support enforcement agencies (as defined in section 466(h) of such Act) and private child support enforcement agencies (as defined in section 466(i) of such Act) in child support enforcement pursuant to the amendments made by this title. The matters addressed by the recommendations shall include substantive and procedural rules which should be followed with respect to privacy safeguards, data security, due process rights, administrative compatibility with State and Federal automated systems, eligibility requirements (such as registration, licensing, and posting of bonds) for access to information and use of enforcement mechanisms, recovery of costs by charging fees, and penalties for violations of the rules.

(b) ISSUANCE OF REPORT- Not later than October 1, 2001, the Secretary of Health and Human Services shall issue to the general public a written report containing the separate sets of recommendations required by subsection (a).

(c) EFFECTIVE DATE- This section shall take effect on the date of the enactment of this Act.

SEC. 311. ESTABLISHMENT AND ENFORCEMENT OF CHILD SUPPORT OBLIGATIONS BY PUBLIC NON-IV-D CHILD SUPPORT ENFORCEMENT AGENCIES.

(a) STATE PLAN REQUIREMENTS- Section 454 of the Social Security Act (42 U.S.C. 654), as amended by section 101(c) of this Act, is amended--

(1) in paragraph (33), by striking `and' at the end;

(2) in paragraph (34), by striking the period and inserting `; and'; and

(3) by inserting after paragraph (34) the following:

`(35) at the option of the State, provide that--

`(A) subject to the privacy safeguards of paragraph (26), the State agency responsible for administering the State plan under this part may provide to a public non-IV-D child support enforcement agency (as defined in section 466(h)) all information in the State Directory of New Hires and any information obtained through information comparisons under section 453(j)(3) about an individual with respect to whom the public agency is seeking to establish or enforce a child support obligation, if the public agency meets such requirements as the State may establish and has entered into an agreement with the State under which the public agency has made a binding commitment to carry out establishment and enforcement activities with respect to the child support obligation subject to the same data security, privacy protection, and due process requirements applicable to the State agency and in accordance with procedures approved by the head of the State agency;

`(B) the State agency may charge and collect fees from any such public agency to recover costs incurred by the State agency in providing information and services to the public agency pursuant to this part.'.

(b) PUBLIC NON-IV-D CHILD SUPPORT ENFORCEMENT AGENCY DEFINED- Section 466 of such Act (42 U.S.C. 666) is amended by adding at the end the following:

`(h) PUBLIC NON-IV-D CHILD SUPPORT ENFORCEMENT AGENCY DEFINED- In this part, the term `public non-IV-D child support enforcement agency' means an agency, of a political subdivision of a State, which is principally responsible for the operation of a child support registry or for the establishment or enforcement of an obligation to pay child support (as defined in section 459(i)(2)) other than pursuant to the State plan approved under this part.'.

SEC. 312. USE OF CERTAIN ENFORCEMENT MECHANISMS.

(a) FEDERAL TAX REFUND INTERCEPT-

(1) ADDITIONAL STATE PLAN REQUIREMENT- Section 454(35) of the Social Security Act, as added by section 311(a) of this Act, is amended--

(1) by striking the period at the end of subparagraph (B) and inserting `; and'; and

(2) by adding at the end the following:

`(C) the State agency may transmit to the Secretary of the Treasury pursuant to section 464 a notice submitted by a public non-IV-D child support enforcement agency (in such form and manner as the State agency may prescribe) that a named individual owes past-due child support (as defined in section 464(c)) which the public agency has agreed to collect, and may collect from the public agency any fee which the State is required to pay for the cost of applying the offset procedure in the case.'.

(2) CONFORMING AMENDMENTS- Section 464 of such Act (42 U.S.C. 664) is amended--

(A) in subsection (a)(2)(A)--

(i) in the 1st sentence, by striking `, and that the State agency' and inserting `or which a public non-IV-D child support enforcement agency in the State has agreed to collect, and that the State agency (or the public non-IV-D child support enforcement agency)'; and

(ii) in the 2nd sentence, by striking `he' and inserting `the Secretary of the Treasury'; and

(B) in subsection (a)(3)(A)--

(i) in the 1st sentence, by inserting `(or, in the case the State is acting on behalf of a public non-IV-D child support enforcement agency, the public non-IV-D child support enforcement agency)' after `the State'; and

(ii) in the 2nd sentence, by inserting `(or, as applicable, the public non-IV-D child support enforcement agency's)' after `State's'.

(b) REPORTING ARREARAGES TO CREDIT BUREAUS- Section 466(a)(7)(A) of such Act (42 U.S.C. 666(a)(7)(A)) is amended by inserting `, and allowing the State to include in the report similar information provided (in such form and manner as the State agency may prescribe) by a public non-IV-D child support enforcement agency' before the period.

(c) PASSPORT SANCTIONS- Section 454(31) of such Act (42 U.S.C. 654(31)) is amended--

(1) by striking `and' at the end of subparagraph (A);

(2) by adding `and' at the end of subparagraph (B); and

(3) by adding at the end the following:

`(C) the State agency may include in the certification any such determination, notice of which is provided to the State agency (in such form and manner as the State agency may require) by a public non-IV-D child support enforcement agency;'.

(d) FINANCIAL INSTITUTION DATA MATCHES-

(1) IN GENERAL- Section 466(a)(17) of such Act (42 U.S.C. 666(a)(17)) is amended by redesignating subparagraph (D) as subparagraph (E) and inserting after subparagraph (C) the following:

`(D) COORDINATION WITH PUBLIC NON-IV-D CHILD SUPPORT ENFORCEMENT AGENCIES- The identifying information described in subparagraph (A)(i) which is provided by the State may include any such identifying information that is provided to the State agency by a public non-IV-D child support enforcement agency in such form and manner as the State agency may require.'.

(2) LIABILITY PROTECTIONS- Section 469A(d) of such Act (42 U.S.C. 669a(d)) is amended by adding at the end the following:

`(3) STATE CHILD SUPPORT ENFORCEMENT AGENCY- The term `State child support enforcement agency' includes, with respect to a financial record of an individual, a public non-IV-D child support enforcement agency if the public agency is seeking to establish or enforce a child support obligation with respect to the individual pursuant to an agreement described in section 454(35)(A).'.

(e) USE OF INCOME WITHHOLDING FOR UNEMPLOYMENT INSURANCE BENEFITS-

(1) DISCLOSURE OF WAGE INFORMATION- Section 303(e)(1) of such Act (42 U.S.C. 503(e)(1)) is amended by striking the second sentence and inserting the following:

`For purposes of this subsection, the term `child support obligations' means obligations to pay child support (as defined in section 459(i)(2) of the Social Security Act).'.

(2) AUTHORITY TO WITHHOLD- Section 303(e)(2)(A) of such Act (42 U.S.C. 503(e)(2)(A)) is amended--

(A) in clause (i), by inserting `and the identity and location of the State or local child support enforcement agency enforcing the obligations (to the extent known)' before the comma;

(B) in clause (iii)(III), by striking `462(e)' and inserting `459(i)(5)'; and

(C) in the matter following clause (iv), by striking `his' and inserting `the individual's'.

(3) CONFORMING AMENDMENT- Section 303(e)(4) of such Act (42 U.S.C. 503(e)(4)) is amended by striking `the last sentence of paragraph (1)' and inserting `section 454 which has been approved by the Secretary of Health and Human Services under part D of title IV or pursuant to an agreement described in section 454(35)(A)'.

SEC. 313. EFFECTIVE DATE.

Except as provided in section 701(b), the amendments made by this subtitle shall take effect on October 1, 2002, and shall apply to payments under part D of title IV of the Social Security Act for calendar quarters beginning on or after such date, and without regard to whether regulations to implement such amendments are promulgated by such date.

SEC. 321. ESTABLISHMENT AND ENFORCEMENT OF CHILD SUPPORT OBLIGATIONS BY PRIVATE CHILD SUPPORT ENFORCEMENT AGENCIES.

(a) STATE PLAN REQUIREMENTS- Section 454 of the Social Security Act (42 U.S.C. 654), as amended by sections 101(c), 311(a), and 312(a)(1) of this Act, is amended--

(1) in paragraph (34), by striking `and' at the end;

(2) in paragraph (35), by striking the period and inserting `; and'; and

(3) by inserting after paragraph (35) the following:

`(36) at the option of the State, provide that--

`(A) subject to the privacy safeguards of paragraph (26), the State agency responsible for administering the State plan under this part may provide to a private child support enforcement agency (as defined in section 466(i)) any information in the State Directory of New Hires and any information obtained through information comparisons under section 453(j)(3) about an individual with respect to whom the private agency is seeking to establish or enforce a child support obligation, if the private agency meets such requirements as the State may establish and has entered into an agreement with the State under which the private agency has made a binding commitment to carry out establishment and enforcement activities with respect to the child support obligation subject to the same data security, privacy protection, and due process requirements applicable to the State agency and in accordance with procedures approved by the head of the State agency;

`(B) the State agency may charge and collect fees from any such private agency to recover costs incurred by the State agency in providing information and services to the private agency pursuant to this part.'.

(b) PRIVATE CHILD SUPPORT ENFORCEMENT AGENCY DEFINED- Section 466 of such Act (42 U.S.C. 666), as amended by section 311(b) of this Act, is amended by adding at the end the following:

`(i) PRIVATE CHILD SUPPORT ENFORCEMENT AGENCY DEFINED- In this part, the term `private child support enforcement agency' means a person or any other non-public entity which seeks to establish or enforce an obligation to pay child support (as defined in section 459(i)(2)).'.

SEC. 322. USE OF CERTAIN ENFORCEMENT MECHANISMS.

(a) FEDERAL TAX REFUND INTERCEPT-

(1) ADDITIONAL STATE PLAN REQUIREMENT- Section 454(36) of the Social Security Act, as added by section 321(a) of this Act, is amended--

(1) by striking the period at the end of subparagraph (A) and inserting `; and'; and

(2) by adding at the end the following:

`(C) the State agency may transmit to the Secretary of the Treasury pursuant to section 464 any notice submitted by a private child support enforcement agency (in such form and manner as the State agency may prescribe) that a named individual owes past-due child support (as defined in section 464(c)) which the private agency has agreed to collect, and may collect from the private agency any fee which the State is required to pay for the cost of applying the offset procedure in the case.'.

(2) CONFORMING AMENDMENTS- Section 464(a) of such Act (42 U.S.C. 664(a)), as amended by section 312(a)(2) of this Act, is amended by inserting `(or private)' after `public non-IV-D' each place it appears.

(b) REPORTING ARREARAGES TO CREDIT BUREAUS- Section 466(a)(7)(A) of such Act (42 U.S.C. 666(a)(7)(A)), as amended by section 312(b) of this Act, is amended by inserting `(or private)' after `public non-IV-D'.

(c) PASSPORT SANCTIONS- Section 454(31)(C) of such Act (42 U.S.C. 654(31)), as amended by section 312(c) of this Act, is amended by inserting `(or private)' after `public non-IV-D'.

(d) FINANCIAL INSTITUTION DATA MATCHES-

(1) IN GENERAL- Section 466(a)(17)(D) of such Act, as added by section 311(d) of this Act, is amended by inserting `(or private)' after `public non-IV-D'.

(2) LIABILITY PROTECTIONS- Section 469A(d)(3) of such Act, as added by section 312(d)(2) of this Act, is amended--

(A) by inserting `(or private)' after `public non-IV-D';

(B) by inserting `(or private) after `the public' each place it appears; and

(C) by inserting `(or 454(36)(A))' before the period.

(e) USE OF INCOME WITHHOLDING FOR UNEMPLOYMENT INSURANCE BENEFITS- Section 303(e)(4) of such Act (42 U.S.C. 503(e)(4)), as amended by section 312(e)(3) of this Act, is amended by inserting `, and includes a private child support enforcement agency (as defined in section 466(i)) with respect to an individual who is an applicant for, or who is determined to be eligible for unemployment compensation if the State in which the private child support enforcement agency is located confirms that the private child support enforcement agency is seeking to establish, modify, or enforce a child support obligation of the individual pursuant to an agreement described in section 454(36)(A)' before the period.

SEC. 323. EFFECTIVE DATE.

Except as provided in section 801(b), the amendments made by this subtitle shall take effect on October 1, 2003, and shall apply to payments under part D of title IV of the Social Security Act for calendar quarters beginning on or after such date, and without regard to whether regulations to implement such amendments are promulgated by such date.

SEC. 401. DECREASE IN AMOUNT OF CHILD SUPPORT ARREARAGE TRIGGERING PASSPORT DENIAL.

Section 452(k) of the Social Security Act (42 U.S.C. 652(k)) is amended by striking `$5,000' and inserting `$2,500'.

SEC. 402. USE OF TAX REFUND INTERCEPT PROGRAM TO COLLECT PAST-DUE CHILD SUPPORT ON BEHALF OF CHILDREN WHO ARE NOT MINORS.

Section 464 of the Social Security Act (42 U.S.C. 664) is amended--

(1) in subsection (a)(2)(A), by striking `(as that term is defined for purposes of this paragraph under subsection (c))'; and

(2) in subsection (c)--

(A) in paragraph (1)--

(i) by striking `(1) Except as provided in paragraph (2), as used in' and inserting `In'; and

(ii) by inserting `(whether or not a minor)' after `a child' each place it appears; and

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

SEC. 501. FATHERHOOD GRANTS.

(a) IN GENERAL- Part A of title IV of the Social Security Act (42 U.S.C. 601-619) 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 prepregnancy, 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 three 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.

`(E) A written commitment by the entity that the entity will make available to each individual participating in the project education about alcohol, tobacco, and other drugs and the effects of abusing such substances, and information about HIV/AIDS and its transmission.

`(2) CONSIDERATION OF APPLICATIONS BY INTERAGENCY PANEL-

`(A) ESTABLISHMENT- There is established a panel to be known as the `Fatherhood Grants Recommendations Panel' (in this subparagraph referred to as the `Panel').

`(B) MEMBERSHIP-

`(i) IN GENERAL- The Panel shall be composed of 10 members, as follows:

`(I) Two members of the Panel shall be appointed by the Secretary.

`(II) Two members of the Panel shall be appointed by the Secretary of Labor.

`(III) Two members of the Panel shall be appointed by the Chairman of the Committee on Ways and Means of the House of Representatives.

`(IV) One member of the Panel shall be appointed by the ranking minority member of the Committee on Ways and Means of the House of Representatives.

`(V) Two members of the Panel shall be appointed by the Chairman of the Committee on Finance of the Senate.

`(VI) One member of the Panel shall be appointed by the ranking minority member of the Committee on Finance of the Senate.

`(ii) QUALIFICATIONS- An individual shall not be eligible to serve on the Panel unless the individual has experience in programs for fathers, programs for the poor, programs for children, program administration, or program research.

`(iii) 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.

`(iv) TIMING OF APPOINTMENTS- The appointment of members to the Panel shall be completed not later than April 1, 2001.

`(C) 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 October 1, 2001.

`(D) TERM OF OFFICE- Each member appointed to the Panel shall serve for the life of the Panel.

`(E) PROHIBITION ON COMPENSATION- Members of the Panel may not receive pay, allowances, or benefits by reason of their service on the Panel.

`(F) 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.

`(G) MEETINGS- The Panel shall meet as often as is necessary to complete the business of the Panel.

`(H) CHAIRPERSON- The Chairperson of the Panel shall be designated by the Secretary at the time of appointment.

`(I) 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 paragraph.

`(J) 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 paragraph. On request of the Chairperson of the Panel, the head of the department or agency shall furnish that information to the Panel.

`(K) 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.

`(L) TERMINATION- The Panel shall terminate on October 1, 2001.

`(3) RULES GOVERNING 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- On October 1, 2001, the Secretary shall award not more than $140,000,000 in matching grants after considering the recommendations submitted pursuant to paragraph (2)(C)(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 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;

`(II) obtaining a written commitment by the entity that the entity will help participating fathers who cooperate with the agency in improving their credit rating; and

`(III) helping fathers arrange and maintain a consistent schedule of visits with their children, unless it would be unsafe;

`(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, community-based domestic violence programs, 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 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 FOUR EQUAL ANNUAL INSTALLMENTS- During the fiscal year in which a grant is awarded under this subsection and each of the succeeding three 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--

`(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

`(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 fifth 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 PANEL- Of the amounts made available pursuant to section 403(a)(1)(E) to carry out this section for fiscal year 2001, a total of $150,000 shall be made available for the interagency panel 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 for fiscal years 2002 through 2005, a total of $140,000,000 shall be made available for grants under this subsection.

`(iii) EVALUATION- Of the amounts made available pursuant to section 403(a)(1)(E) to carry out this section for fiscal years 2001 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 2006.

`(ii) EVALUATION FUNDS- The amounts made available pursuant to subparagraph (A)(iii) shall remain available until the end of fiscal year 2008.'.

(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 2001 through 2007, such sums as are necessary to carry out section 403A' before the period.

(c) 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).'.

SEC. 511. FATHERHOOD PROJECTS OF NATIONAL SIGNIFICANCE.

Section 403A of the Social Security Act, as added by subtitle A of this title, 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 two nationally recognized nonprofit fatherhood promotion organizations which meet the requirements of subparagraph (B), at least one 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 one 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 three 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 FOUR 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. 601. CHANGE DATES FOR ABSTINENCE 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 amended by section 606(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 amended, 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. 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)) is 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, address, and employer identification number 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, 2000.

SEC. 604. IMMIGRATION PROVISIONS.

(a) NONIMMIGRANT 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 nonimmigrant 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 $2,500, until child support payments under the judgment, decree, or order are satisfied or the nonimmigrant 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(37), that an individual who is a nonimmigrant alien (as defined in section 101(a)(15) of the Immigration and Nationality Act) owes arrearages of child support in an amount exceeding $2,500, 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 such Act.'.

(2) STATE AGENCY RESPONSIBILITY- Section 454 of the Social Security Act (42 U.S.C. 654), as amended by sections 101(c), 311(a), 312(a)(1), 321(a), and 322(a) of this Act, is amended--

(A) by striking `and' at the end of paragraph (35);

(B) by striking the period at the end of paragraph (36) and inserting `; and'; and

(C) by inserting after paragraph (36) the following:

`(37) provide that the State agency will have in effect a procedure for certifying to the Secretary, in such format and accompained by such supporting

SEC. 605. CORRECTION OF ERRORS IN CONFORMING AMENDMENTS IN THE WELFARE-TO-WORK AND CHILD SUPPORT AMENDMENTS OF 1999.

(a) IN GENERAL- Section 403(a)(5) of the Social Security Act (42 U.S.C. 603(a)(5)), as amended by section 606(a) of this Act, is amended--

(1) in subparagraph (E), by striking `$1,500,000' and inserting `$15,000,000';

(2) in subparagraph (F), by striking `$900,000' and inserting `$9,000,000';

(3) in subparagraph (G)(i), by striking `$300,000' and inserting `$3,000,000'.

(b) RETROACTIVITY- The amendments made by subsection (a) of this section shall take effect as if included in the enactment of section 806 of H.R. 3424 of the 106th Congress by section 1000(a)(4) of Public Law 106-113.

SEC. 606. ELIMINATION OF SET-ASIDE 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 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) EFFECTIVE DATE- The amendments made by this section shall take effect on the date of the enactment of this Act.

SEC. 701. EFFECTIVE DATE.

(a) IN GENERAL- Except as provided in sections 101(e), 301(c), 313, 323, 603(b), 605(b) and 606, and in subsection (b) of this section, this Act and the amendments made by this Act shall take effect on October 1, 2001, and shall apply to payments under part D of title IV of the Social Security Act for calendar quarters beginning on or after such date, and without regard to whether regulations to implement such amendments are promulgated by such date.

(b) DELAY PERMITTED IF STATE LEGISLATION REQUIRED- In the case of a State plan approved under section 454 of the Social Security Act which requires State legislation (other than legislation appropriating funds) in order for the plan to meet the additional requirements imposed by the amendments made by this Act, the State plan shall not be regarded as failing to comply with the additional requirements solely on the basis of the failure of the plan to meet the additional requirements before the 1st day of the 1st calendar quarter beginning after the close of the 1st regular session of the State legislature that begins after the date of the enactment of this Act. For purposes of the previous sentence, in the case of a State that has a 2-year legislative session, each year of such session shall be deemed to be a separate regular session of the State legislature.