# FEDERAL LAW

**TITLE 42 -- THE PUBLIC HEALTH AND WELFARE**

**CHAPTER 7 -- SOCIAL SECURITY**

**SUBCHAPTER IV -- GRANTS TO STATES FOR AID AND SERVICES**

**TO NEEDY FAMILIES WITH CHILDREN AND**

**FOR CHILD-WELFARE SERVICES**

######## Sec. 653. Federal Parent Locator Service {#sec.-653.-federal-parent-locator-service .unnumbered}

(a)(1) Establishment; purpose

The Secretary shall establish and conduct a Federal Parent Locator
Service, under the direction of the designee of the Secretary referred
to in section 652(a) of this title, which shall be used for the purposes
specified in paragraphs (2) and (3).

\(2\) For the purpose of establishing parentage, establishing, setting
the amount of, modifying, or enforcing child support obligations, the
Federal Parent Locator Service shall obtain and transmit to any
authorized person specified in subsection (c) ‑

\(A\) information on, or facilitating the discovery of, the location of
any individual ‑

\(i\) who is under an obligation to pay child support;

\(ii\) against whom such an obligation is sought; or

\(iii\) to whom such an obligation is owed, including the individual\'s
social security number (or numbers), most recent address, and the name,
address, and employer identification number of the individual\'s
employer;

\(B\) information on the individual\'s wages (or other income) from, and
benefits of, employment (including rights to or enrollment in group
health care coverage); and

\(C\) information on the type, status, location, and amount of any
assets of, or debts owed by or to, any such individual.

\(3\) For the purpose of enforcing any Federal or state law with respect
to the unlawful taking or restraint of a child, or making or enforcing a
child custody or visitation determination, as defined in section
663(d)(1), the Federal Parent Locator Service shall be used to obtain
and transmit the information specified in section 663(c) to the
authorized persons specified in section 663(d)(2).

(b)(1) Upon request, filed in accordance with subsection (d), of any
authorized person, as defined in subsection (c) for the information
described in subsection (a)(2), or of any authorized person, as defined
in section 663(d)(2) for the information described in section 663(c),
the Secretary shall, notwithstanding any other provision of law, provide
through the Federal Parent Locator Service such information to such
person, if such information ‑

\(A\) is contained in any files or records maintained by the Secretary
or by the Department of Health and Human Services; or

\(B\) is not contained in such files or records, but can be obtained by
the Secretary, under the authority conferred by subsection (e), from any
other department, agency, or instrumentality of the United States or of
any state, and is not prohibited from disclosure under paragraph (2).

\(2\) No information shall be disclosed to any person if the disclosure
of such information would contravene the national policy or security
interests of the United States or the confidentiality of census data.
The Secretary shall give priority to requests made by any authorized
person described in subsection (c)(1). No information shall be disclosed
to any person if the state has notified the Secretary that the state has
reasonable evidence of domestic violence or child abuse and the
disclosure of such information could be harmful to the custodial parent
or the child of such parent, provided that ‑

\(A\) in response to a request from an authorized person (as defined in
subsection (c) of this section and section 663(d)(2)), the Secretary
shall advise the authorized person that the Secretary has been notified
that there is reasonable evidence of domestic violence or child abuse
and that information can only be disclosed to a court or an agent of a
court pursuant to subparagraph (B); and

\(B\) information may be disclosed to a court or an agent of a court
described in subsection (c)(2) of this section or section 663(d)(2)(B),
if ‑

\(i\) upon receipt of information from the Secretary, the court
determines whether disclosure to any other person of that information
could be harmful to the parent or the child; and

\(ii\) if the court determines that disclosure of such information to
any other person could be harmful, the court and its agents shall not
make any such disclosure.

\(3\) Information received or transmitted pursuant to this section shall
be subject to the safeguard provisions contained in section 654(26).

\(c\) "Authorized person" defined

As used in subsection (a) of this section, the term "authorized
person"\' means --

\(1\) any agent or attorney of any state having in effect a plan
approved under this part, who has the duty or authority under such plans
to seek to recover any amounts owed as child and spousal (including,
when authorized under the state plan, any official of a political
subdivision);

\(2\) the court which has authority to issue an order or to serve as the
initiating court in an action to seek an order against a noncustodial
parent for the support and maintenance of a child, or any agent of such
court;

\(3\) the resident parent, legal guardian, attorney, or agent of a child
(other than a child receiving aid under part A of this subchapter) (as
determined by regulations prescribed by the Secretary) without regard to
the existence of a court order against a noncustodial parent who has a
duty to support and maintain any such child.

\(d\) Form and manner of request for information

A request for information under this section shall be filed in such
manner and form as the Secretary shall by regulation prescribe and shall
be accompanied or supported by such documents as the Secretary may
determine to be necessary.

\(e\) Compliance with request; search of files and records by head of
any department, etc., of United States; transmittal of information to
Secretary; reimbursement for cost of search; fees

\(1\) Whenever the Secretary receives a request submitted under
subsection (b) of this section which he is reasonably satisfied meets
the criteria established by subsections (a), (b), and (c) of this
section, he shall promptly undertake to provide the information
requested from the files and records maintained by any of the
departments, agencies, or instrumentalities of the United States or of
any state.

\(2\) Notwithstanding any other provision of law, whenever the
individual who is the head of any department, agency, or instrumentality
of the United States receives a request from the Secretary for
information authorized to be provided by the Secretary under this
section, such individual shall promptly cause a search to be made of the
files and records maintained by such department, agency, or
instrumentality with a view to determining whether the information
requested is contained in any such files or records. If such search
discloses the information requested, such individual shall immediately
transmit such information to the Secretary, except that if any
information is obtained the disclosure of which would contravene
national policy or security interests of the United States or the
confidentiality of census data, such information shall not be
transmitted and such individual shall immediately notify the Secretary.
If such search fails to disclose the information requested, such
individual shall immediately so notify the Secretary. The costs incurred
by any such department, agency, or instrumentality of the United States
or of any state in providing such information to the Secretary shall be
reimbursed by him in an amount which the Secretary determines to be
reasonable payment for the information exchange (which amount shall not
include payment for the costs of obtaining, compiling, or maintaining
the information). Whenever such services are furnished to an individual
specified in subsection (c)(3) of this section, a fee shall be charged
such individual. The fee so charged shall be used to reimburse the
Secretary or his delegate for the expense of providing such services.

\(3\) The Secretary of Labor shall enter into an agreement with the
Secretary to provide prompt access for the Secretary (in accordance with
this subsection) to the wage and unemployment compensation claims
information and data maintained by or for the Department of Labor or
state employment security agencies.

\(f\) Arrangements and cooperation with state agencies

The Secretary, in carrying out his duties and functions under this
section, shall enter into arrangements with state agencies administering
state plans approved under this part for such state agencies to accept
from resident parents, legal guardians, or agents of a child described
in subsection (c)(3) of this section and to transmit to the Secretary
requests for information with regard to the whereabouts of noncustodial
parents and otherwise to cooperate with the Secretary in carrying out
the purposes of this section.

\(g\) REIMBURSEMENT FOR REPORTS BY STATE AGENCIES .‑ The Secretary may
reimburse Federal and state agencies for the costs incurred by such
entities in furnishing information requested by the Secretary under this
section in an amount which the Secretary determines to be reasonable
payment for the information exchange (which amount shall not include
payment for the costs of obtaining, compiling, or maintaining the
information).

\(h\) FEDERAL CASE REGISTRY OF CHILD SUPPORT ORDERS .‑

\(1\) IN GENERAL .‑ Not later than October 1, 1998, in order to assist
states in administering programs under state plans approved under this
part and programs funded under part A, and for the other purposes
specified in this section, the Secretary shall establish and maintain in
the Federal Parent Locator Service an automated registry (which shall be
known as the 'Federal Case Registry of Child Support Orders'), which
shall contain abstracts of support orders and other information
described in paragraph (2) with respect to each case and order in each
state case registry maintained pursuant to section 654A(e), as furnished
(and regularly updated), pursuant to section 654A(f), by state agencies
administering programs under this part.

\(2\) CASE AND ORDER INFORMATION. ‑ The information referred to in
paragraph (1) with respect to a case or an order shall be such
information as the Secretary may specify in regulations (including the
names, social security numbers or other uniform identification numbers,
and state case identification numbers) to identify the individuals who
owe or are owed support (or with respect to or on behalf of whom support
obligations are sought to be established), and the state or states which
have the case or order.

\(i\) NATIONAL DIRECTORY OF NEW HIRES .‑

\(1\) IN GENERAL .‑ In order to assist states in administering programs
under state plans approved under this part and programs funded under
part A, and for the other purposes specified in this section, the
Secretary shall, not later than October 1, 1997, establish and maintain
in the Federal Parent Locator Service an automated directory to be known
as the National Directory of New Hires, which shall contain the
information supplied pursuant to section 653A(g)(2).

\(2\) ENTRY OF DATA .‑ Information shall be entered into the data base
maintained by the National Directory of New Hires within 2 business days
of receipt pursuant to section 653A(g)(2).

\(3\) ADMINISTRATION OF FEDERAL TAX LAWS .‑ The Secretary of the
Treasury shall have access to the information in the National Directory
of New Hires for purposes of administering section 32 of the Internal
Revenue Code of 1986, or the advance payment of the earned income tax
credit under section 3507 of such Code, and verifying a claim with
respect to employment in a tax return.

\(4\) LIST OF MULTISTATE EMPLOYERS .‑ The Secretary shall maintain
within the National Directory of New Hires a list of multistate
employers that report information regarding newly hired employees
pursuant to section 653A(b)(1)(B), and the state which each such
employer has designated to receive such information.

\(j\) INFORMATION COMPARISONS AND OTHER DISCLOSURES .‑

\(1\) VERIFICATION BY SOCIAL SECURITY ADMINISTRATION .‑

\(A\) IN GENERAL .‑ The Secretary shall transmit data in each component
of the Federal Parent Locator Service maintained under this section and
to information on individuals and employers maintained under this
section to the Social Security Administration to the extent necessary
for verification in accordance with subparagraph (B).

\(B\) VERIFICATION BY SSA .‑ The Social Security Administration shall
verify the accuracy of, correct, or supply to the extent possible, and
report to the Secretary, the following information supplied by the
Secretary pursuant to subparagraph (A):

\(i\) The name, social security number, and birth date of each such
individual.

\(ii\) The employer identification number of each such employer.

\(2\) INFORMATION COMPARISONS .‑ For the purpose of locating individuals
in a paternity establishment case or a case involving the establishment,
modification, or enforcement of a support order, the Secretary shall ‑

\(A\) compare information in the National Directory of New Hires against
information in the support case abstracts in the Federal Case Registry
of Child Support Orders not less often than every 2 business days; and

\(B\) within 2 business days after such a comparison reveals a match
with respect to an individual, report the information to the state
agency responsible for the case.

\(3\) INFORMATION COMPARISONS AND DISCLOSURES OF INFORMATION IN ALL
REGISTRIES FOR TITLE IV PROGRAM PURPOSES. ‑ To the extent and with the
frequency that the Secretary determines to be effective in assisting
states to carry out their responsibilities under programs operated under
this part and programs funded under part A, the Secretary shall ‑

\(A\) compare the information in each component of the Federal Parent
Locator Service maintained under this section against the information in
each other such component (other than the comparison required by
paragraph (2)), and report instances in which such a comparison reveals
a match with respect to an individual to state agencies operating such
programs; and

\(B\) disclose information in such components to such State agencies.

\(4\) PROVISION OF NEW HIRE INFORMATION TO THE SOCIAL SECURITY
ADMINISTRATION. ‑ The National Directory of New Hires shall provide the
Commissioner of Social Security with all information in the National
Directory.

\(5\) RESEARCH .‑ The Secretary may provide access to data in each
component of the Federal Parent Locator Service maintained under this
section and to information reported by employers pursuant to section
653A(b) for research purposes found by the Secretary to be likely to
contribute to achieving the purposes of part A or this part, but without
personal identifiers.

\(k\) FEES. ‑

\(1\) FOR SSA VERIFICATION ‑ The Secretary shall reimburse the
Commissioner of Social Security, at a rate negotiated between the
Secretary and the Commissioner, for the costs incurred by the
Commissioner in performing the verification services described in
subsection (j).

\(2\) FOR INFORMATION FROM STATE DIRECTORIES OF NEW HIRES ‑ The
Secretary shall reimburse costs incurred by state directories of new
hires in furnishing information as required by section 653A(g)(2), at
rates which the Secretary determines to be reasonable (which rates shall
not include payment for the costs of obtaining, compiling, or
maintaining such information).

\(3\) FOR INFORMATION FURNISHED TO STATE AND FEDERAL AGENCIES. ‑ A state
or Federal agency that receives information from the Secretary pursuant
to this section shall reimburse the Secretary for costs incurred by the
Secretary in furnishing the information, at rates which the Secretary
determines to be reasonable (which rates shall include payment for the
costs of obtaining, verifying, maintaining, and comparing the
information).

\(l\) RESTRICTION ON DISCLOSURE AND USE. ‑ Information in the Federal
Parent Locator Service, and information resulting from comparisons using
such information, shall not be used or disclosed except as expressly
provided in this section, subject to section 6103 of the Internal
Revenue Code of 1986.

\(m\) INFORMATION INTEGRITY AND SECURITY. ‑ The Secretary shall
establish and implement safeguards with respect to the entities
established under this section designed to ‑

\(1\) ensure the accuracy and completeness of information in the Federal
Parent Locator Service; and

\(2\) restrict access to confidential information in the Federal Parent
Locator Service to authorized persons, and restrict use of such
information to authorized purposes.

\(n\) FEDERAL GOVERNMENT REPORTING .‑ Each department, agency, and
instrumentality of the United States shall on a quarterly basis report
to the Federal Parent Locator Service the name and social security
number of each employee and the wages paid to the employee during the
previous quarter, except that such a report shall not be filed with
respect to an employee of a department, agency, or instrumentality
performing intelligence or counterintelligence functions, if the head of
such department, agency, or instrumentality has determined that filing
such a report could endanger the safety of the employee or compromise an
ongoing investigation or intelligence mission.

\(o\) USE OF SET-ASIDE FUNDS .‑ Out of any money in the Treasury of the
United States not otherwise appropriated, there is hereby appropriated
to the Secretary for each fiscal year an amount equal to 2 percent of
the total amount paid to the Federal Government pursuant to section
657(a) during the immediately preceding fiscal year (as determined on
the basis of the most recent reliable data available to the Secretary as
of the end of the 3rd calendar quarter following the end of such
preceding fiscal year), which shall be available for use by the
Secretary, either directly or through grants, contracts, or interagency
agreements, for operation of the Federal Parent Locator Service under
this section, to the extent such costs are not recovered through user
fees. Amounts appropriated under this subsection for each of fiscal
years 1997 through 2001 shall remain available until expended.

\(p\) SUPPORT ORDER DEFINED .‑ As used in this part, the term \`support
order\' means a judgment, decree, or order, whether temporary, final, or
subject to modification, issued by a court or an administrative agency
of competent jurisdiction, for the support and maintenance of a child,
including a child who has attained the age of majority under the law of
the issuing state, or of the parent with whom the child is living, which
provides for monetary support, health care, arrearages, or
reimbursement, and which may include related costs and fees, interest
and penalties, income withholding, attorneys\' fees, and other relief.

######## SEC. 653A. STATE DIRECTORY OF NEW HIRES. {#sec.-653a.-state-directory-of-new-hires. .unnumbered}

\(a\) ESTABLISHMENT. ‑

\(1\) IN GENERAL. ‑

\(A\) REQUIREMENT FOR STATES THAT HAVE NO DIRECTORY.‑ Except as provided
in subparagraph (B), not later than October 1, 1997, each state shall
establish an automated directory (to be known as the 'State Directory of
New Hires') which shall contain information supplied in accordance with
subsection (b) by employers on each newly hired employee.

\(B\) STATES WITH NEW HIRE REPORTING IN EXISTENCE. ‑ A state which has a
new hire reporting law in existence on the date of the enactment of this
section may continue to operate under the state law, but the state must
meet the requirements of subsection (g)(2) not later than October 1,
1997, and the requirements of this section (other than subsection
(g)(2)) not later than October 1, 1998.

\(2\) DEFINITIONS ‑ As used in this section:

\(A\) EMPLOYEE. ‑ The term 'employee' ‑

\(i\) means an individual who is an employee within the meaning of
chapter 24 of the Internal Revenue Code of 1986; and

\(ii\) does not include an employee of a Federal or state agency
performing intelligence or counterintelligence functions, if the head of
such agency has determined that reporting pursuant to paragraph (1) with
respect to the employee could endanger the safety of the employee or
compromise an ongoing investigation or intelligence mission.

\(B\) EMPLOYER. ‑

\(i\) IN GENERAL. ‑ The term 'employer' has the meaning given such term
in section 3401(d) of the Internal Revenue Code of 1986 and includes any
governmental entity and any labor organization.

\(ii\) LABOR ORGANIZATION .‑ The term 'labor organization' shall have
the meaning given such term in section 2(5) of the National Labor
Relations Act, and includes any entity (also known as a 'hiring hall')
which is used by the organization and an employer to carry out
requirements described in section 8(f)(3) of such Act of an agreement
between the organization and the employer.

\(b\) EMPLOYER INFORMATION. ‑

\(1\) REPORTING REQUIREMENT. ‑

\(A\) IN GENERAL .‑ Except as provided in subparagraphs (B) and (C),
each employer shall furnish to the Directory of New Hires of the state
in which a newly hired employee works, a report that contains the name,
address, and social security number of the employee, and the name and
address of, and identifying number assigned under section 6109 of the
Internal Revenue Code of 1986 to, the employer.

\(B\) MULTISTATE EMPLOYERS ‑ An employer that has employees who are
employed in 2 or more states and that transmits reports magnetically or
electronically may comply with subparagraph (A) by designating 1 state
in which such employer has employees to which the employer will transmit
the report described in subparagraph (A), and transmitting such report
to such state. Any employer that transmits reports pursuant to this
subparagraph shall notify the Secretary in writing as to which state
such employer designates for the purpose of sending reports.

\(C\) FEDERAL GOVERNMENT EMPLOYERS. ‑ Any department, agency, or
instrumentality of the United States shall comply with subparagraph (A)
by transmitting the report described in subparagraph (A) to the National
Directory of New Hires established pursuant to section 653.

\(2\) TIMING OF REPORT. ‑ Each state may provide the time within which
the report required by paragraph (1) shall be made with respect to an
employee, but such report shall be made ‑

\(A\) not later than 20 days after the date the employer hires the
employee; or

\(B\) in the case of an employer transmitting reports magnetically or
electronically, by 2 monthly transmissions (if necessary) not less than
12 days nor more than 16 days apart.

\(c\) REPORTING FORMAT AND METHOD. ‑ Each report required by subsection
(b) shall be made on a W-4 form or, at the option of the employer, an
equivalent form, and may be transmitted by 1st class mail, magnetically,
or electronically.

\(d\) CIVIL MONEY PENALTIES ON NONCOMPLYING EMPLOYERS. ‑ The state shall
have the option to set a state civil money penalty which shall not
exceed ‑

\(1\) \$25 per failure to meet the requirements of this section with
respect to a newly hired employee; or

\(2\) \$500 if, under state law, the failure is the result of a
conspiracy between the employer and the employee to not supply the
required report or to supply a false or incomplete report.

\(e\) ENTRY OF EMPLOYER INFORMATION .‑ Information shall be entered into
the data base maintained by the State Directory of New Hires within 5
business days of receipt from an employer pursuant to subsection (b).

\(f\) INFORMATION COMPARISONS .‑

\(1\) IN GENERAL. ‑ Not later than May 1, 1998, an agency designated by
the state shall, directly or by contract, conduct automated comparisons
of the social security numbers reported by employers pursuant to
subsection (b) and the social security numbers appearing in the records
of the state case registry for cases being enforced under the state
plan.

\(2\) NOTICE OF MATCH. ‑ When an information comparison conducted under
paragraph (1) reveals a match with respect to the social security number
of an individual required to provide support under a support order, the
State Directory of New Hires shall provide the agency administering the
state plan approved under this part of the appropriate state with the
name, address, and social security number of the employee to whom the
social security number is assigned, and the name and address of, and
identifying number assigned under section 6109 of the Internal Revenue
Code of 1986 to, the employer.

\(g\) TRANSMISSION OF INFORMATION .‑

\(1\) TRANSMISSION OF WAGE WITHHOLDING NOTICES TO EMPLOYERS .‑ Within 2
business days after the date information regarding a newly hired
employee is entered into the State Directory of New Hires, the state
agency enforcing the employee\'s child support obligation shall transmit
a notice to the employer of the employee directing the employer to
withhold from the income of the employee an amount equal to the monthly
(or other periodic) child support obligation (including any past due
support obligation) of the employee, unless the employee\'s income is
not subject to withholding pursuant to section 666(b)(3).

\(2\) TRANSMISSIONS TO THE NATIONAL DIRECTORY OF NEW HIRES. ‑

\(A\) NEW HIRE INFORMATION ‑ Within 3 business days after the date
information regarding a newly hired employee is entered into the State
Directory of New Hires, the State Directory of New Hires shall furnish
the information to the National Directory of New Hires.

\(B\) WAGE AND UNEMPLOYMENT COMPENSATION INFORMATION .‑ The State
Directory of New Hires shall, on a quarterly basis, furnish to the
National Directory of New information concerning the wages and
unemployment compensation paid to individuals, by such dates, in such
format, and containing such information as the Secretary of Health and
Human Services shall specify in regulations.

\(3\) BUSINESS DAY DEFINED .‑ As used in this subsection, the term
'business day' means a day on which state offices are open for regular
business.

\(h\) OTHER USES OF NEW HIRE INFORMATION .‑

\(1\) LOCATION OF CHILD SUPPORT OBLIGORS. ‑ The agency administering the
state plan approved under this part shall use information received
pursuant to subsection (f)(2) to locate individuals for purposes of
establishing paternity and establishing, modifying, and enforcing child
support obligations, and may disclose such information to any agent of
the agency that is under contract with the agency to carry out such
purposes.

\(2\) VERIFICATION OF ELIGIBILITY FOR CERTAIN PROGRAMS .‑ A state agency
responsible for administering a program specified in section 1137(b)
shall have access to information reported by employers pursuant to
subsection (b) of this section for purposes of verifying eligibility for
the program.

\(3\) ADMINISTRATION OF EMPLOYMENT SECURITY AND WORKERS\' COMPENSATION
.‑ State agencies operating employment security and workers\'
compensation programs shall have access to information reported by
employers pursuant to subsection (b) for the purposes of administering
such programs.