2000
<PRE>[DOCID: f:s918is.txt]






107th CONGRESS
  1st Session
                                 S. 918

  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, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 21, 2001

 Ms. Snowe (for herself, Mr. Kohl, Mr. Bayh, Mr. Graham, Mr. Johnson, 
     Mr. Lieberman, Mr. Rockefeller, Mr. Breaux, and Mrs. Lincoln) 
introduced the following bill; which was read twice and referred to the 
                          Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  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, 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 
2001''.

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--DEMONSTRATIONS OF EXPANDED INFORMATION AND ENFORCEMENT

Sec. 201. Guidelines for involvement of public non-IV-D child support 
                            enforcement agencies in child support 
                            enforcement.
Sec. 202. Demonstrations involving establishment and enforcement of 
                            child support obligations by public non-IV-
                            D child support enforcement agencies.
Sec. 203. GAO report to Congress on private child support enforcement 
                            agencies.
Sec. 204. Effective date.
                    TITLE III--EXPANDED ENFORCEMENT

Sec. 301. Decrease in amount of child support arrearage triggering 
                            passport denial.
Sec. 302. Use of tax refund intercept program to collect past-due child 
                            support on behalf of children who are not 
                            minors.
Sec. 303. Garnishment of compensation paid to veterans for service-
                            connected disabilities in order to enforce 
                            child support obligations.
                        TITLE IV--MISCELLANEOUS

Sec. 401. Technical correction to changed dates for abstinence 
                            evaluation.
Sec. 402. Report on undistributed child support payments.
Sec. 403. Use of new hire information to assist in administration of 
                            unemployment compensation programs.
Sec. 404. Immigration provisions.
Sec. 405. Correction of errors in conforming amendments in the Welfare-
                            to-Work and Child Support Amendments of 
                            1999.
Sec. 406. Increase in payment rate to States for expenditures for 
                            short-term training of staff of certain 
                            child welfare agencies.
                        TITLE V--EFFECTIVE DATE

Sec. 501. Effective date.

                 TITLE I--DISTRIBUTION OF CHILD SUPPORT

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 paying 
        assistance to a family under the State program funded under 
        this part, that a member of the family assign to the State any 
        right the family member may have (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, not exceeding the total amount of assistance 
        so paid to the family, which accrues during the period that the 
        family receives assistance under the program.''.
    (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 (e) and (f), 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 wit
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h 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's share of the amount payable to a family 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 pursuant to former 
        section 457(a)(2)(B) (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.
            ``(7) State option to pass through additional support with 
        federal financial participation.--
                    ``(A) In general.--Notwithstanding paragraphs (1) 
                and (2), a State shall not be required to pay to the 
                Federal Government the Federal share of an amount 
                collected on behalf of a family that is not a recipient 
                of assistance under the State program funded under part 
                A, to the extent that the State pays the amount to the 
                family.
                    ``(B) Recipients of tanf for less than 5 years.--
                            ``(i) In general.--Notwithstanding 
                        paragraphs (1) and (2), a State shall not be 
                        required to pay to the Federal Government the 
                        Federal share of an amount collected on behalf 
                        of a family that is a recipient of assistance 
                        under the State program funded under part A 
                        and, if the family includes an adult, that has 
                        received the assistance for not more than 5 
                        years after the date of enactment of this 
                        paragraph, to the extent that--
                                    ``(I) the State pays the amount to 
                                the family; and
                                    ``(II) subject to clause (ii), the 
                                amount is disregarded in determining 
                                the amount and type of the assistance 
                                provided to the family.
                            ``(ii) Limitation.--Of the amount 
                        disregarded as described in clause (i)(II), the 
                        maximum amount that may be taken into account 
                        for purposes of clause (i) shall not exceed 
                        $400 per month, except that, in the case of a 
                        family that includes 2 or more children, the 
                        State may elect to increase the maximum amount 
                        to not more than $600 per month.
            ``(8) States with demonstration waivers.--Notwithstanding 
        the preceding paragraphs, a State with a waiver under section 
        1115, effective on or before October 1, 1997, the terms of 
        which allow pass-through of child support payments, may pass 
        through payments in accordance with such terms with respect to 
        families subject to the waiver.''.
                    (B) State plan to include election as to which 
                rules to apply in distributing child support arrearages 
                collected on behalf of families formerly receiving 
                assistance.--Section 454 of such Act (42 U.S.C. 654) is 
                amended--
                            (i) by striking ``and'' at the end of 
                        paragraph (32);
                            (ii) by striking the period at the end of 
                        paragraph (33) and inserting ``; and''; and
                            (iii) by inserting after paragraph (33) the 
                        following:
            ``(34) include an election by the State to apply section 
        457(a)(2)(B) of this Act or former section 457(a)(2)(B) of this 
        Act (as in effect for the State immediately before the date 
        this paragraph first applies to the State) to the distribution 
        of the amounts which are the subject of such sections, and for 
        so long as the State elects to so apply such former section, 
        the amendments made by subsection (e) of section 101 of the 
        Child Support Distribution Act of 2001 shall not apply with 
        respect to the State, notwithstanding subsection (f)(1) of such 
        section 101.''.
                    (C) Approval of estimation procedures.--Not later 
                than October 1, 2002, 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.''.
    (c) Ban on Recovery of Medicaid Costs for Certain Births.--Section 
454 of such Act (42 U.S.C. 654) as amended by subsection (b)(1)(B), is 
amended--
            (1) by striking ``and'' at the end of paragraph (33);
            (2) by striking the period at the end of paragraph (34) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (34) the following:
            ``(35) 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) State Option To Discontinue Pre-1997 Support Assignments.--
Section 457(b) of such Act (42 U.S.C. 657(b)) is amended by striking 
``shall'' and inserting ``may''.
    (e) Conforming Amendments.--
            (1) 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 clause (i) 
        or (ii) of section 457(a)(2)(B), but only to the extent that 
        the State properly elects under section 457(a)(6) to use the 
        grant to fund the payment.''.
            (2) Section 409(a)(7)(B)(i) of such Act (42 U.S.C. 
        609(a)(7)(B)(i)) is amended--
                    (A) in subclause (I)(aa), by striking 
                ``457(a)(1)(B)'' and inserting ``457(a)(1)''; and
                    (B) by adding at the end the following:
                                    ``(V) Portions of certain child 
                                support payments 
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collected on behalf of 
                                and distributed to families no longer 
                                receiving assistance.--Any amount paid 
                                by a State pursuant to clause (i) or 
                                (ii) of section 457(a)(2)(B), but only 
                                to the extent that the State properly 
                                elects under section 457(a)(6) to have 
                                the payment considered a qualified 
                                State expenditure.''.
    (f) 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 enactment of this Act and before October 1, 
        2005.

    TITLE II--DEMONSTRATIONS OF EXPANDED INFORMATION AND ENFORCEMENT

SEC. 201. GUIDELINES FOR INVOLVEMENT OF PUBLIC NON-IV-D CHILD SUPPORT 
              ENFORCEMENT AGENCIES IN CHILD SUPPORT ENFORCEMENT.

    (a) In General.--Not later than October 1, 2002, the Secretary, in 
consultation with States, local governments, and individuals or 
companies knowledgeable about involving public non-IV-D child support 
enforcement agencies in child support enforcement, shall develop 
recommendations which address the participation of public non-IV-D 
child support enforcement agencies in the establishment and enforcement 
of child support obligations. 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 Federal and State 
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, penalties 
for violations of the rules, treatment of collections for purposes of 
section 458 of such Act, and avoidance of duplication of effort.
    (b) Definitions.--In this title:
            (1) Child support.--The term ``child support'' has the 
        meaning given in section 459(i)(2) of the Social Security Act.
            (2) Public non-iv-d child support enforcement agency.--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 other than pursuant to the 
        State plan approved under part D of title IV of such Act, or a 
        clerk of court office of a political subdivision of a State.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Health and Human Services.
            (4) State.--The term ``State'' shall have the meaning given 
        in section 1101(a)(1) of the Social Security Act for purposes 
        of part D of title IV of such Act.

SEC. 202. DEMONSTRATIONS INVOLVING ESTABLISHMENT AND ENFORCEMENT OF 
              CHILD SUPPORT OBLIGATIONS BY PUBLIC NON-IV-D CHILD 
              SUPPORT ENFORCEMENT AGENCIES.

    (a) Purpose.--The purpose of this section is to determine the 
extent to which public non-IV-D child support enforcement agencies may 
contribute effectively to the establishment and enforcement of child 
support obligations.
    (b) Applications.--
            (1) Consideration.--The Secretary shall consider all 
        applications received from States desiring to conduct 
        demonstration projects under this section.
            (2) Preferences.--In considering which applications to 
        approve under this section, the Secretary shall give preference 
        to applications submitted by States that had a public non-IV-D 
        child support enforcement agency as of January 1, 2001.
            (3) Approval.--
                    (A) Timing; limitation on number of projects.--On 
                July 1, 2003, the Secretary may approve not more than 
                10 applications for projects providing for the 
                participation of a public non-IV-D child support 
                enforcement agency in the establishment and enforcement 
                of child support obligations, and, if the Secretary 
                receives at least 5 such applications that meet such 
                requirements as the Secretary may establish, shall 
                approve not less than 5 such applications.
                    (B) Requirements.--The Secretary may not approve an 
                application for a project unless--
                            (i) the applicant and the Secretary have 
                        entered into a written agreement which 
                        addresses at a minimum, privacy safeguards, 
                        data security, due process rights, automated 
                        systems, liability, oversight, and fees, and 
                        the applicant has made a commitment to conduct 
                        the project in accordance with the written 
                        agreement and such other requirements as the 
                        Secretary may establish;
                            (ii) the project includes a research plan 
                        (but such plan shall not be required to use 
                        random assignment) that is focused on assessing 
the costs and benefits of the project; and
                            (iii) the project appears likely to 
                        contribute significantly to the achievement of 
                        the purpose of this title.
    (c) Demonstration Authority.--On approval of an application 
submitted by a State under this section--
            (1) the State agency responsible for administering the 
        State plan under part D of title IV of the Social Security Act 
        may, subject to the privacy safeguards of section 454(26) of 
        such Act, provide to any public non-IV-D child support 
        enforcement agency participating in the demonstration project 
        all information in the State Directory of New Hires and any 
        information obtained through information comparisons under 
        section 453(j)(3) of such Act about an individual with respect 
        to whom the public non-IV-D agency is seeking to establish or 
        enforce a child support obligation, if the public non-IV-D 
        agency meets such requirements as the State may establish and 
        has entered into an agreement with the State under which the 
        public non-IV-D 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;
            (2) the State agency may charge and collect fees from any 
        such public non-IV-D agency to recover costs incurred by the 
        State agency in providing information and services to the 
        public non-IV-D agency under the demonstration project;
            (3) if a public non-IV-D child support enforcement agency 
        has agreed to collect past-due support (as defined in section 
        464(c) of such Act) owed by a named indi
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vidual, and the State 
        agency has submitted a notice to the Secretary of the Treasury 
        pursuant to section 464 of such Act on behalf of the public 
        non-IV-D agency, then the Secretary of the Treasury shall 
        consider the State agency to have agreed to collect such 
        support for purposes of such section 464, and the State agency 
        may collect from the public non-IV-D agency any fee which the 
        State is required to pay for the cost of applying the offset 
        procedure in the case;
            (4) for so long as a public non-IV-D child support 
        enforcement agency is participating in the demonstration 
        project, the public non-IV-D agency shall be considered part of 
        the State agency for purposes of section 469A of such Act; and
            (5) for so long as a public non-IV-D child support 
        enforcement agency is participating in the demonstration 
        project, the public non-IV-D agency shall be considered part of 
        the State agency for purposes of section 303(e) of such Act but 
        only with respect to any child support obligation that the 
        public non-IV-D agency has agreed to collect.
    (d) Waiver Authority.--The Secretary may waive or vary the 
applicability of any provision of section 303(e), 454(31), 464, 
466(a)(7), 466(a)(17), and 469A of the Social Security Act to the 
extent necessary to enable the conduct of demonstration projects under 
this section, subject to the preservation of the data security, privacy 
protection, and due process requirements of part D of title IV of such 
Act.
    (e) Federal Audit.--
            (1) In general.--The Comptroller General of the United 
        States shall conduct an audit of the demonstration projects 
        conducted under this section for the purpose of examining and 
        evaluating the manner in which information and enforcement 
        tools are used by the public non-IV-D child support enforcement 
        agencies participating in the projects.
            (2) Report to congress.--
                    (A) In general.--The Comptroller General of the 
                United States shall submit to Congress a report on the 
                audit required by paragraph (1).
                    (B) Timing.--The report required by subparagraph 
                (A) shall be so submitted not later than October 1, 
                2005.
    (f) Secretarial Report to Congress.--
            (1) In general.--The Secretary shall submit to Congress a 
        report on the demonstration projects conducted under this 
        section, which shall include the results of any research or 
        evaluation conducted pursuant to this title, and shall include 
        policy recommendations regarding the establishment and 
        enforcement of child support obligations by the agencies 
        involved.
            (2) Timing.--The report required by paragraph (1) shall be 
        so submitted not later than October 1, 2006.

SEC. 203. GAO REPORT TO CONGRESS ON PRIVATE CHILD SUPPORT ENFORCEMENT 
              AGENCIES.

    (a) In General.--Not later than October 1, 2002, the Comptroller 
General of the United States shall submit to Congress a report on the 
activities of private child support enforcement agencies that shall be 
designed to help Congress determine whether the agencies are providing 
a needed service in a fair manner using accepted debt collection 
practices and at a reasonable fee.
    (b) Matters To Be Addressed.--Among the matters addressed by the 
report required by subsection (a) shall be the following:
            (1) The number of private child support enforcement 
        agencies.
            (2) The types of debt collection activities conducted by 
        the private agencies.
            (3) The fees charged by the private agencies.
            (4) The methods used by the private agencies to collect 
        fees from custodial parents.
            (5) The nature and degree of cooperation the private 
        agencies receive from State agencies responsible for 
        administering State plans under part D of title IV of the 
        Social Security Act.
            (6) The extent to which the conduct of the private agencies 
        is subject to Federal or State regulation, and if so, the 
        extent to which the regulations are effectively enforced.
            (7) The amount of child support owed but uncollected and 
        changes in this amount in recent years.
            (8) The average period of time required for the completion 
        of successful enforcement actions yielding collections of past-
        due child support by both the child support enforcement 
        programs operated pursuant to State plans approved under part D 
        of title IV of the Social Security Act and, to the extent 
        known, by private child support enforcement agencies.
            (9) The types of Federal and State child support 
        enforcement remedies and resources currently available to 
        private child support enforcement agencies, and the types of 
        such remedies and resources now restricted to use by State 
        agencies administering State plans referred to in paragraph 
        (8).
    (c) Private Child Support Enforcement Agency Defined.--In this 
section, the term ``private child support enforcement agency'' means a 
person or any other nonpublic entity which seeks to establish or 
enforce an obligation to pay child support (as defined in section 
459(i)(2) of the Social Security Act).

SEC. 204. EFFECTIVE DATE.

    This title shall take effect on the date of enactment of this Act.

                    TITLE III--EXPANDED ENFORCEMENT

SEC. 301. 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. 302. 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. 303. GARNISHMENT OF COMPENSATION PAID TO VETERANS FOR SERVICE-
              CONNECTED DISABILITIES IN ORDER TO ENFORCE CHILD SUPPORT 
              OBLIGATIONS.

    Section 459(h) of the Social Security Act (42 U.S.C. 659(h)) is 
amended--
            (1) in paragraph (1)(A)(ii)--
                    (A) in subclause (IV), by striking ``or'' after the 
                semicolon;
                    (B) in subclause (V), by inserting ``or'' after the 
                semicolon; and
                    (C) by adding at the end the following:
                                    ``(VI) subject to paragraph (3), 
                                other than periodic benefits or 
                                payments described in subclause (V), by 
                                the Secretary of Veterans Affairs as 
                                compensation for a service-connected 
                                disability paid by the Secretary to a 
                                former member of the Armed Forces;''; 
                                and
            (2) by adding at the end the following:
            ``(3) Limitations with respect to compensation paid to 
        veterans for service-connected disabilities.--
                    ``(A) Alimony and child support.--Subject to 
                subparag
2000
raph (B), compensation described in paragraph 
                (1)(A)(ii)(VI) shall not be subject to withholding 
                pursuant to this section--
                            ``(i) for payment of alimony; or
                            ``(ii) for payment of child support if the 
                        individual is fewer than 60 days in arrears in 
                        payment of the support.
                    ``(B) Limitation.--Not more than 50 percent of any 
                payment of compensation described in subparagraph (A) 
                may be withheld pursuant to this section.''.

                        TITLE IV--MISCELLANEOUS

SEC. 401. TECHNICAL CORRECTION TO CHANGED DATES FOR ABSTINENCE 
              EVALUATION.

    (a) In General.--Section 513 of H.R. 5656, as enacted into law by 
section 1(a)(1) of Public Law 106-554 (114 Stat. 2763A-71), is 
amended--
            (1) in subsection (a), by striking ``Section 
        403(a)(5)(H)(iii) of the Social Security Act (42 U.S.C. 
        603(a)(5)(H)(iii))'' and inserting ``Section 403(a)(5)(G)(iii) 
        of the Social Security Act (42 U.S.C. 603(a)(5)(G)(iii))''; and
            (2) in subsection (b), by striking ``Section 403(a)(5)(H)'' 
        and inserting ``Section 403(a)(5)(G)''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect as if included in the enactment of section 513 of H.R. 5656 
(as so enacted into law).

SEC. 402. REPORT ON UNDISTRIBUTED CHILD SUPPORT PAYMENTS.

    Not later than 6 months after the date of 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 Federal or State level to expedite the payment of 
undistributed child support.

SEC. 403. 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, 2001.

SEC. 404. 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 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 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 recei
eb0
ves a certification by a State agency, 
in accordance with section 454(36), 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 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 section 101(c), is 
        amended--
                    (A) by striking ``and'' at the end of paragraph 
                (34);
                    (B) by striking the period at the end of paragraph 
                (35) and inserting ``; and''; and
                    (C) by inserting after paragraph (35) the 
                following:
            ``(36) provide that the State agency will have in effect a 
        procedure for certifying to the Secretary, in such format and 
        accompanied by such supporting documentation as the Secretary 
        may require, determinations that nonimmigrant aliens owe 
        arrearages of child support in an amount exceeding $2,500.''.

SEC. 405. CORRECTION OF ERRORS IN CONFORMING AMENDMENTS IN THE WELFARE-
              TO-WORK AND CHILD SUPPORT AMENDMENTS OF 1999.

    The amendments made by section 2402 of the Emergency Supplemental 
Act, 2000 (Public Law 106-246; 114 Stat. 555) shall take effect as if 
included in the enactment of section 806 of the Departments of Labor, 
Health, and Human Services, and Education, and Related Agencies 
Appropriations Act, 2000 (as enacted into law by section 1000(a)(4) of 
Public Law 106-113; 113 Stat. 1501A-286).

SEC. 406. INCREASE IN PAYMENT RATE TO STATES FOR EXPENDITURES FOR 
              SHORT-TERM TRAINING OF STAFF OF CERTAIN CHILD WELFARE 
              AGENCIES.

    Section 474(a)(3)(B) of the Social Security Act (42 U.S.C. 
674(a)(3)(B)) is amended by inserting ``, or State-licensed or State-
approved child welfare agencies providing services,'' after ``child 
care institutions''.

                        TITLE V--EFFECTIVE DATE

SEC. 501. EFFECTIVE DATE.

    (a) In General.--Except as otherwise provided in this Act, and 
subject to subsection (b), this Act and the amendments made by this Act 
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.
    (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 first day of the first calendar quarter 
beginning after the close of the first regular session of the State 
legislature that begins after the date of enactment of this 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.
                                 &lt;all&gt;

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