[Federal Register Volume 73, Number 188 (Friday, September 26, 2008)]
[Rules and Regulations]
[Pages 56422-56446]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-22054]



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Part V





Department of Health and Human Services





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Administration for Children and Families



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Office of Child Support Enforcement



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45 CFR Parts 302, 303, and 307



State Parent Locator Service; Safeguarding Child Support Information; 
Final Rule

Federal Register / Vol. 73, No. 188 / Friday, September 26, 2008 / 
Rules and Regulations

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Administration for Children and Families

Office of Child Support Enforcement

45 CFR Parts 302, 303, and 307

RIN 0970-AC01


State Parent Locator Service; Safeguarding Child Support 
Information

AGENCY: Office of Child Support Enforcement (OCSE), Administration for 
Children and Families (ACF), Department of Health and Human Services 
(HHS).

ACTION: Final rule.

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SUMMARY: The Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996 (PRWORA) created and expanded State and 
Federal title IV-D child support enforcement databases and 
significantly enhanced access to information for title IV-D child 
support purposes. States are moving toward integrated service delivery 
and developing enterprise architecture initiatives to link their 
program databases. This final rule prescribes requirements for: State 
Parent Locator Service responses to authorized location requests; and 
State IV-D program safeguarding of confidential information and 
authorized disclosures of this information. This rule restricts the use 
of confidential data and information to child support purposes, with 
exceptions for certain disclosures permitted by statute.

DATES: This rule is effective March 23, 2009.

FOR FURTHER INFORMATION CONTACT: Yvette Hilderson Riddick, Policy and 
Automation Liaison, OCSE, 202-401-4885, e-mail: 
<a href="/cdn-cgi/l/email-protection#e8919e8d9c9c8d9a818c8c818b83a8898b8ec680809bc68f879e"><span class="__cf_email__" data-cfemail="a8d1decddcdccddac1ccccc1cbc3e8c9cbce86c0c0db86cfc7de">[email protected]</span></a>. Deaf and hearing-impaired individuals may 
call the Federal Dual Party Relay Service at 1-800-877-8339 between 8 
a.m. and 7 p.m. eastern time.

SUPPLEMENTARY INFORMATION:

I. Statutory Authority
II. Summary Description of Regulatory Provisions
    A. State Parent Locator Service
    B. Safeguarding and Disclosure of Confidential Information
III. Section-by-Section Discussion of Comments
IV. Regulatory Review
    A. Paperwork Reduction Act
    B. Regulatory Flexibility Analysis
    C. Regulatory Impact Analysis
    D. Unfunded Mandates Reform Act of 1995
    E. Congressional Review
    F. Assessment of Federal Regulations and Policies on Families
    G. Executive Order 13132

I. Statutory Authority

    This final regulation is published under the authority granted to 
the Secretary of HHS (Secretary) by section 1102 of the Social Security 
Act (the Act), 42 U.S.C. 1302. Section 1102 authorizes the Secretary to 
publish regulations that may be necessary for the efficient 
administration of the functions for which he is responsible under the 
Act.
    The provisions of this final rule pertaining to the Federal Parent 
Locator Service (PLS) implement section 453 of the Act, 42 U.S.C. 653. 
Section 453 requires the Secretary to establish and conduct a Federal 
PLS to obtain and transmit specified information to authorized persons 
for purposes of establishing parentage; establishing, modifying, or 
enforcing child support obligations; and enforcing any Federal or State 
law with respect to a parental kidnapping; or making or enforcing a 
child custody or visitation determination, as described in section 463 
of the Act. It authorizes the Secretary to use the services of State 
entities to carry out these functions.
    The provisions relating to the State PLS implement section 454(8) 
of the Act, 42 U.S.C. 654(8), which requires each State plan for child 
support enforcement to provide that the State will: (1) Establish a 
service to locate parents utilizing all sources of information and 
available records; and the Federal PLS established under section 453; 
and (2) shall subject to the privacy safeguards in section 454(26) of 
the Act, 42 U.S.C. 654(26), disclose only the information described in 
sections 453 and 463 of the Act to the authorized persons specified in 
those sections.
    The provisions relating to the States' computerized support 
enforcement systems implement section 454A of the Act, 42 U.S.C. 654a, 
which requires States' systems to perform such functions as the 
Secretary may specify relating to management of the State title IV-D 
program. Additionally, as stated in section 454A(f) of the Act, the 
State shall use the statewide automated system to extract information 
from, to share and compare information with, and to receive information 
from, other data bases and information necessary to enable the State 
agency (or the Secretary or other State or Federal agencies) to carry 
out the Child Support Enforcement program under title IV-D of the Act, 
and other programs designated by the Secretary.
    In addition, the provisions pertaining to safeguarding of 
information implement section 454(26) of the Act, which requires the 
State IV-D program to have in effect safeguards, applicable to all 
confidential information handled by the State agency, that are designed 
to protect the privacy rights of the parties. Nothing in this rule is 
meant to prevent the appropriate use of administrative data for program 
oversight, management, and research.

II. Summary Description of Regulatory Provisions

    The following is a summary of the regulatory provisions included in 
this final rule. The Notice of Proposed Rulemaking (NPRM) was published 
in the Federal Register on October 14, 2005 (70 FR 60038). The NPRM was 
organized into two major sections. Section 1: State Parent Locator 
Service discussed amendments to the proposed regulations on locating 
individuals and their assets in response to authorized location 
requests. Affected regulations include Sec. Sec.  302.35, 303.3, 
303.20, and 303.70. Section 2: Safeguarding and Disclosure of 
Confidential Information discussed new regulations on safeguarding and 
disclosure of confidential information, Sec.  303.21 and amendments to 
the regulation on security and confidentiality of information in 
computerized support enforcement systems, Sec.  307.13.
    The Section-by-Section Discussion of Comments (Section III) 
provides a detailed listing of the comments and responses. Many 
commenters asked for points of clarification rather than for change of 
language in the regulation. There were some comments, however, that 
brought about regulatory language changes in the final rule. 
Specifically, major changes include:
    In Sec.  303.21(a) we deleted the last sentence ``The amount of 
support ordered and the amount of a support collection are not 
considered confidential information for purposes of this section.'' 
Commenters were concerned that this language may be interpreted as IV-D 
payment records could be made available to requestors not associated 
with the case who may want the information for purposes not related to 
child support.
    In response to comments, we deleted paragraph (1) of Sec.  
303.21(d), which in the NPRM authorized disclosure of confidential 
information to the individual to whom the information pertains. To the 
extent that an individual is requesting information about himself/
herself in the IV-D agency's files for a IV-D program purpose, the 
information may be

[[Page 56423]]

disclosed under paragraph (c), General rule. We also deleted under 
paragraph (e) Safeguards, that ``safeguards shall prohibit disclosure 
to any committee or legislative body (Federal, State, or local) of any 
confidential information, unless authorized by the individual as 
specified in paragraph (d) of this section.'' To the extent that an 
individual in a IV-D case submits a request to a legislator or 
legislative body concerning his or her IV-D case, the IV-D agency may 
disclose the information necessary for the response because the inquiry 
relates to the administration of the IV-D program and is authorized 
under paragraph (c).
    We revised Sec.  303.21(d)(2)(ii) and (iii) and relocated it to 
Sec.  303.21(d)(1). Section 454A of the Act only permits the disclosure 
of information for non-IV-D purposes to State agencies of designated 
programs where the information is necessary to carry out a State agency 
function under that program. Therefore, we have relocated these 
disclosures to clarify that they are encompassed within this authority 
specified in Sec.  303.21(d)(1). In paragraph (2), we restricted 
disclosure of information for income and eligibility verification 
purposes under sections 453A and 1137 of the Act to SDNH information.
    We added language to Sec.  303.21(e) that refers to family violence 
indicator requirements under Sec.  307.11(f)(1)(x). Commenters thought 
we should add language regarding the family violence indicator which is 
an additional privacy safeguard for family violence victims.
    We also changed Sec.  307.13(a) of the NPRM by deleting paragraph 
(4). It referred to welfare-to-work, a grant program that no longer 
exists. We redesignated paragraph (a)(5) as paragraph (a)(4) and 
revised the language for clarity. As revised, it requires written 
policies that limit disclosure outside the IV-D program of National 
Directory of New Hire, Federal Case Registry and Internal Revenue 
Service (IRS) information from the computerized support enforcement 
system. The regulation sets forth the circumstances when information 
may be disclosed to IV-A, IV-B, and IV-E agencies and when IRS 
information may be disclosed. As revised, financial institution 
information cannot be shared outside the IV-D program. We made this 
change because of the language in section 469A(a) and (b) of the Act. 
These sections provide for non-liability for financial institutions 
when they disclose financial record information only for child support 
related purposes. Throughout the preamble and regulation we use 
``financial institution information'' to refer to information covered 
by section 469A(a) and (b) of the Act. This information includes 
Multistate Financial Data Matches (MSFIDM) and State Financial 
Institute Data Matches (State FIDM).
    Some commenters found the charts confusing, especially Appendix A 
in Section I and Appendix A in Section 2. We reorganized the two 
previous charts into three charts: Appendix A, B, and C. In Appendix A 
we reordered the chart by displaying locate efforts first by person 
rather than by purpose. Appendix A illustrates authority for locating 
individuals through the State PLS. Appendix B illustrates authority for 
locating an individual sought in a child custody/visitation or parental 
kidnapping case. Appendix C illustrates authority for State IV-D 
agencies to release information to non-IV-D Federal, State, and Tribal 
Programs. These charts are included at the end of the preamble for 
illustrative purposes only.

Section II. A. State Parent Locator Service (Sections 302.35, 303.3, 
303.20, and 303.70)

Section 302.35, State Parent Locator Service

    The previous regulation at Sec.  302.35(a) contained a State plan 
requirement that the IV-D program shall establish a State Parent 
Locator Service (PLS) using: (1) All relevant sources of information 
and records available in the State, and in other States as appropriate; 
and (2) the Federal PLS of the Department of Health and Human Services.
    Paragraph (a) modifies the requirement for each State to 
``establish'' a State PLS, and instead requires each State to 
``maintain'' a State PLS ``to provide locate information to authorized 
persons for authorized purposes.''
    Section Sec.  302.35(a)(1), covering IV-D agencies, cases and 
purposes, requires that the State PLS access ``the Federal PLS and all 
relevant sources of information and records available in the State, and 
in other States as appropriate, for locating custodial parents, 
noncustodial parents, and children for IV-D purposes.'' Paragraph 
(a)(2) addresses locate requests for authorized non-IV-D individuals 
and purposes. For purposes of this regulation, all requests under 
section 453(c)(3) of the Act are considered to be requests by non-IV-D 
individuals and purposes. This provision requires a IV-D program to 
access and release information authorized to be disclosed under section 
453(a)(2) of the Act from ``the Federal PLS and, in accordance with 
State law, information from relevant in-state sources of information 
and records, as appropriate'' to respond to locate requests from a non-
IV-D entity or authorized individual specified in paragraph (c) and for 
authorized purposes specified in paragraph (d).
    For non-IV-D requests, under paragraph (a)(2), the State PLS will 
not access IRS information or financial institution information, which 
is available only to IV-D agencies and to a limited extent to their 
agents, under Federal statute.
    The previous regulation at paragraph (b) required that the IV-D 
agency must ``establish a central State PLS office and also may 
designate additional IV-D offices within the State to submit requests 
to the Federal PLS.'' The amendment to Sec.  302.35(b) removes mention 
of a State PLS ``office.'' It also requires the IV-D program to 
``maintain'' rather than ``establish'' a central State PLS.
    The previous Sec.  302.35(c)(1) through (5) language specified the 
authorized persons and entities from whom the State PLS shall accept 
requests for locate information. The amendments to paragraph (c) 
strengthen the process by which authorized requestors obtain locate 
information through the State PLS, specifically with respect to 
requests from a resident parent, legal guardian, attorney, or agent of 
a non-IV-A child.
    Previously, Sec.  302.35(c)(3) simply referred to the ``resident 
parent, legal guardian, attorney, or agent of a child'' in non-IV-A 
cases as authorized persons. The revised Sec.  302.35(c)(3) makes it 
clear that the State PLS will accept locate requests from the resident 
parent, legal guardian, attorney or agent of a child who is not 
receiving assistance under title IV-A of the Act only if key 
requirements are met. The regulation requires the individual to: (i) 
Attest that the request is being made to obtain information on, or to 
facilitate the discovery of, any individual in accordance with section 
453(a)(2) of the Act for the purpose of establishing parentage, 
establishing, setting the amount of, modifying, or enforcing child 
support obligations; (ii) attest that any information obtained through 
the Federal or State PLS will be used solely for these purposes and 
otherwise treated as confidential; (iii) provide evidence that the 
requestor is the parent, legal guardian, attorney, or agent of a child 
not receiving assistance under title IV-A of the Act, and if an agent 
of such a child, evidence of a valid contract that meets any 
requirements in State law or written policy for acting as an agent, and 
if a parent, attestation that he or she

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is the resident parent; and (iv) pay the Federal PLS fee required under 
section 453(e)(2) of the Act and Sec.  303.70(f)(2)(i), if the State 
does not pay the fee itself. The regulation also specifies that the 
State may charge a fee to cover its costs of processing these requests. 
A State's fee must be as close to actual costs as possible, so as not 
to discourage requests to use the Federal PLS. See Sec. Sec.  304.23(e) 
and 304.50(a). Paragraph (c)(4) simplifies the language regarding the 
use of the Federal PLS for parental kidnapping, child custody, or 
visitation cases. Paragraph (c)(5) rewords the previous language 
allowing locate requests from State title IV-B and title IV-E agencies.
    Previous paragraph (d) is redesignated as paragraph (e), as 
discussed below. A new paragraph (d) is added to specify the authorized 
purposes for which the State PLS and the Federal PLS may be used and 
the locate information that may be released for these purposes. 
Paragraph (d)(1) covers the purposes of establishing parentage and 
establishing, modifying, or enforcing child support. It also covers 
related authorized releases of information to locate an individual who 
has or may have parental rights with respect to the child. It pertains 
to IV-D and non-IV-D authorized persons and programs, including title 
IV-B and IV-E agencies. For IV-B/IV-E cases that are non-IV-D and other 
cases under (d)(1), wage information is authorized and the State PLS 
may provide asset and/or debt information from the Federal PLS. 
Paragraph (d)(2) covers the purposes of enforcing a State law with 
respect to the unlawful taking or restraint of a child or for making or 
enforcing child custody or visitation determination and the related 
authorized releases of information.
    Paragraph (e), requires privacy safeguards for Federal PLS 
information only. The amendment specifies at paragraphs (e)(1) and (2) 
that, subject to the requirements of this section and the privacy 
safeguards required under section 454(26) of the Act and the family 
violence indicators under section 307.11(f)(1)(x), the State PLS shall 
disclose ``Federal PLS information'' described in sections 453 and 463 
of the Act and ``information from in-state locate.'' An Appendix A has 
been added at the end of the preamble to show the linkages between 
authorizing statute, authorized purpose, authorized person or program, 
and authorized information.

Section 303.3, Location of Noncustodial Parents in IV-D Cases

    Under the final rule, Sec.  303.3 is re-titled ``Location of 
noncustodial parents in IV-D cases.'' Under paragraph (a), location is 
defined to mean ``information concerning the physical whereabouts of 
the noncustodial parent, or the noncustodial parent's employer(s), 
other sources of income or assets, as appropriate, which is sufficient 
and necessary to take the next appropriate action in a IV-D case.''
    The amendments to paragraph (b) clarify which location requirements 
apply to IV-D cases. Paragraph 303.3(b) requires the IV-D program to 
attempt to locate a noncustodial parent in a IV-D case or his or her 
sources of income and/or assets when location is needed to take 
necessary action. Paragraphs (b)(1) through (5) provide an extensive 
list of location sources that as discussed below are unchanged for the 
most part from the previous regulation.
    Paragraph (b)(3) no longer includes the words ``including 
transmitting appropriate cases to the Federal PLS'' because States now 
submit cases to the Federal Case Registry for automatic matching with 
the National Directory of New Hires for locate purposes.
    The previous regulation at paragraph (b)(4) required the IV-D 
program to ``Refer appropriate cases to the IV-D program of any other 
State, in accordance with the requirements of Sec.  303.7 of this 
part.'' The amendment inserts the word ``IV-D'' before the word 
``cases'' to clarify that the IV-D program of State 1 may refer only 
IV-D cases to the IV-D program of State 2.
    New paragraph (b)(6) draws a direct link between the IV-D program's 
duty to locate noncustodial parents and the duty to safeguard 
information. The language incorporates by reference both the existing 
statutory requirement at sections 454(26) and 454A(d) and (f) of the 
Act and the regulatory requirements at Sec. Sec.  303.21 and 307.13.
    Current paragraph (c) regarding diligent efforts to serve process 
is unchanged, but is republished to aid the reader in reviewing this 
section.

Section 303.20, Minimum Organizational and Staffing Requirements

    The regulation at Sec.  303.20 describes the minimum organizational 
and staffing requirements for the IV-D program. Paragraph (b) of this 
section requires an organizational structure and staff sufficient to 
fulfill specified State level functions, including, in paragraph 
(b)(7), ``operation of the State Parent Locator Service as required 
under Sec. Sec.  302.35, 303.3, and 303.70 of this chapter.''

Section 303.21, Safeguarding and Disclosure of Confidential Information

    This new regulation is discussed in Section II.B.

Section 303.70, Procedures for Submissions to the State Parent Locator 
Service (State PLS) or the Federal Parent Locator Service (Federal PLS)

    With passage of legislation that established the National Directory 
of New Hires (NDNH) in 1996 and established the Federal Case Registry 
(FCR) in 1998, the Federal PLS became highly automated. The language in 
this section has been revised to indicate that the Federal PLS reflects 
the automated matching and return of information to IV-D programs in 
IV-D cases from the Federal PLS's Federal Case Registry and National 
Directory of New Hires. For example, while requests for Federal PLS 
information are accepted, State IV-D programs no longer ``request'' 
Federal PLS information and we replaced the word ``requests'' with 
``submittals'' wherever it appears. We eliminated the word ``office'' 
as in State PLS ``office'' to demonstrate that this work is automated.
    A new paragraph (a) has been inserted: The State agency will have 
procedures for submitting to the State PLS or the Federal PLS for the 
purpose of locating parents, putative fathers, or children for the 
purpose of establishing parentage or establishing, setting the amount 
of, modifying, or enforcing child support obligations; or 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 463(d)(1) of 
the Act. The previous paragraph (a) has been redesignated as paragraph 
(b) and the previous paragraph (b) has been redesignated as paragraph 
(c).
    In addition, in newly designated paragraph (d) all submittals shall 
contain the following information: (1) The parent's or putative 
father's name; (2) the parent's or putative father's Social Security 
Number (SSN). If the SSN is unknown the IV-D program must make 
reasonable efforts to ascertain the individual's SSN before making a 
submittal to the Federal PLS; and (3) any other information prescribed 
by the Office.
    The previous regulation at Sec.  303.70(d) has been redesignated as 
paragraph (e). It requires that annually the IV-D director attest to 
compliance with the listed requirements. Paragraph (e)(1)(i) specifies 
that the IV-D program will ``obtain'' rather than ``request''

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information. A new paragraph (e)(1)(ii) clarifies that the IV-D program 
will only provide information to authorized persons as specified in 
sections 453(c) and 463(d) of the Act and Sec.  302.35.
    Paragraph (e)(2) is new and requires that, in the case of a 
submittal made on behalf of a resident parent, legal guardian, attorney 
or agent of a child not receiving assistance under title IV-A, the IV-D 
program must verify that the requestor has complied with the provisions 
of Sec.  302.35.
    Paragraph (e)(3), formerly paragraph (d)(2), has been changed to 
specify that the IV-D program shall treat information obtained through 
the Federal PLS as confidential and shall safeguard the information in 
accordance with statutory requirements at Sec.  303.21.
    Paragraph (f) has minor changes. In (f)(1) the statutory references 
have been accompanied by explanatory phrases for better understanding 
and in (f)(4)(ii) the word ``paid'' has been changed to ``transmitted'' 
to reflect the change in payment methodology due to technology 
advances.

II.B. Safeguarding and Disclosure of Confidential Information (Sections 
303.21 and 307.13)

Section 303.21, Safeguarding and Disclosure of Confidential Information

    The regulation consists of six paragraphs: (a) Definitions; (b) 
Scope; (c) General rule; (d) Authorized disclosures; (e) Safeguards; 
and (f) Penalties for unauthorized disclosure.

Section 303.21(a) Definitions

    The regulation begins with a definition of the term ``confidential 
information.'' Paragraph (a)(1) provides that ``confidential 
information'' means any information relating to a specified individual 
or an individual who can be identified by reference to one or more 
factors specific to him or her, including, but not limited, to the 
individual's Social Security Number, residential and mailing addresses, 
employment information, and financial information. Paragraph (a)(2) 
defines independent verification to mean the process of acquiring and 
confirming confidential information through the use of a second source. 
The information from the second source, which verifies the information 
about NDNH or FCR data, may be released to those authorized to inspect 
and use the information as authorized under the regulations or the Act.

Section 303.21(b) Scope

    Paragraph (b) reads: ``The requirements of this section apply to 
the IV-D agency, any other State or local agency or official to whom 
the IV-D agency delegates any of the functions of the IV-D program, any 
official with whom a cooperative agreement as described in Sec.  302.34 
has been entered into, and any person or private agency from whom the 
IV-D agency has purchased services pursuant to Sec.  304.22.''

Section 303.21(c) General Rule

    Paragraph (c) presents a general rule which states that ``[e]xcept 
as authorized by the Act and implementing regulations, an entity 
described in paragraph (b) of this section may not disclose any 
confidential information, obtained in connection with the performance 
of IV-D functions, outside of the administration of the IV-D program.''

Section 303.21(d) Authorized Disclosures

    Paragraph (d) sets forth the authorized disclosures that are 
exceptions to the general rule prohibiting disclosure of confidential 
information. Under paragraph (d)(1), upon request, the IV-D agency may, 
to the extent that it does not interfere with the IV-D agency meeting 
its own obligations, disclose information for certain limited purposes. 
Under paragraph (d)(1) information may be shared for administration of 
programs under titles IV (TANF, child and family services, and foster 
care and adoption programs), XIX (Medicaid program), and XXI (State 
Children's Health Insurance [SCHIP] program) of the Act. The regulation 
also includes disclosure to Tribal programs authorized under title IV-A 
and IV-D of the Act.
    Paragraph (d)(2) (previously paragraph (d)(2)(iv)) permits the 
release of SDNH information to programs designated pursuant to sections 
453A and 1137 of the Act for income and eligibility verification 
purposes.
    Paragraph (d)(3) requires that authorized disclosures under Sec.  
303.21(d)(1) and (2) shall not include confidential information from 
the National Directory of New Hires, the Federal Case Registry, or 
Internal Revenue Service (IRS), unless authorized under Sec.  307.13 or 
unless the information has been independently verified. A State may 
independently verify the NDNH or the FCR information through another 
source, in which case the information from the second source may be 
used. Independent verification is the process of acquiring and 
confirming confidential information through the use of a second source. 
The information from the second source may be released to those 
authorized to inspect and use the information. For example, if a State 
determines that an address is correct through a postal verification the 
State can share the information it acquired from the second source (the 
Post Office). No IRS information can be disclosed outside of the 
administration of the IV-D program, unless specifically authorized in 
Federal statute or independently verified. IRS information is 
restricted as specified in the Internal Revenue Code (IRC). No 
financial institution information may be disclosed outside the IV-D 
program. The restriction on release of financial institution 
information outside the IV-D program is due to the liability protection 
given to financial institutions for release of information to the 
Federal PLS or to the State IV-D programs for child support purposes as 
indicated in section 466(a)(17)(C) of the Act and limitations in 
section 469A of the Act, regarding the use of such information.

Section 303.21(e) Safeguards

    Paragraph (e) provides that ``In addition to, and not in lieu of, 
the safeguards described in Sec.  307.13 of this chapter, which governs 
computerized support enforcement systems, the IV-D agency shall 
establish appropriate safeguards to comply with the provisions of this 
section.'' These safeguards shall also include prohibitions against the 
release of information when the State has reasonable evidence of 
domestic violence or child abuse against a party or a child and that 
the disclosure of such information could be harmful to the party or the 
child, as required by Sec.  454(26) of the Act, and shall include use 
of the family violence indicator required under Sec.  307.11(f)(1)(x) 
of this chapter.

Section 303.21(f) Penalties for Unauthorized Disclosure

    Paragraph (f) provides that ``[a]ny disclosure or use of 
confidential information in violation of the Act and implementing 
regulations remains subject to any State and Federal statutes that 
impose legal sanctions for such disclosure.''

Section 307.13 Security and Confidentiality for Computerized Support 
Enforcement Systems in Operation After October 1, 1997

    Section 307.13 addresses security and confidentiality of 
computerized systems. Paragraph (a), (a)(1), and (a)(2) are unchanged. 
Paragraph (a) addresses information integrity and security. Automated 
systems must have safeguards protecting the integrity,

[[Page 56426]]

accuracy, completeness of, access to, and use of data in the 
computerized support enforcement system. These safeguards shall include 
written policies concerning access to data by IV-D program personnel, 
and the sharing of data with other persons to: (a)(1) Permit access to 
and use of data to the extent necessary to carry out the State IV-D 
program under this chapter and (a)(2) specify the data which may be 
used for particular IV-D program purposes, and the personnel permitted 
access to such data.
    Paragraph (a)(3) permits the IV-D agency to exchange data from its 
computerized support enforcement system with agencies administering 
other programs under titles IV, XIX, and XXI of the Act to the extent 
necessary to carry out State and Tribal agency responsibilities under 
such programs in accordance with section 454A(f)(3) of the Act; and to 
the extent that it does not interfere with the IV-D agency meeting its 
own obligations.
    Paragraph (a)(4) as written in the NPRM has been deleted. It 
referred to welfare-to-work, a grant program that no longer exists. The 
present paragraph (a)(4) which previously was paragraph (a)(5) has been 
rewritten for clarity and requires written policies that generally 
prohibit disclosure outside the IV-D program of National Directory of 
New Hire or Federal Case Registry information, or IRS information from 
the computerized support enforcement system, to information that has 
been independently verified. IV-A, IV-B, and IV-E agencies are 
authorized under various subsections of section 453 of the Act to 
receive NDNH and FCR information from the Federal PLS for certain 
specified purposes. Since these agencies are authorized to have this 
information, we are permitting the IV-D agency to disclose the NDNH or 
FCR information from the IV-D computerized support enforcement system 
directly to the IV-A, IV-B, or IV-E agency if it is being requested for 
the purpose authorized under section 453 of the Act. For IV-B and IV-E 
programs this includes establishing paternity or parental rights with 
respect to a child.

III. Section-by-Section Discussion of Comments

    This section provides a detailed discussion of comments received on 
the proposed rule, and describes changes made to the proposed rule. We 
refer generally to actions of the ``Department'' pursuant to the rule. 
The rule itself refers to actions of the ``Secretary'' but the day-to-
day activities of the Secretary's functions have been delegated and are 
exercised by other Department officials, primarily in the 
Administration for Children and Families. ``Office'' refers to the 
Federal Office of Child Support Enforcement (OCSE). We received 
approximately 200 comments from 20 IV-D programs (including 1 tribe), 3 
organizations, and 1 private citizen. Many comments were for points of 
clarification rather than stating support or opposition to the proposed 
regulation. For example, many comments indicated a lack of awareness on 
existing longtime requirements such as the statutory restrictions of 
access to Federal PLS data on IV-D systems for certain unauthorized 
persons and programs.

General Comments

    There were various comments that are not attributable to specific 
sections of the regulation and are discussed below.
    1. Comment: Two commenters ask that once the final rule is imposed, 
OCSE provide States with reasonable time to implement these 
regulations, which may include changes to State legislation and 
automated systems. Another commenter believes the Office should make 
clear what the effective date is of this regulation as was done with 
some regulations while implementing PRWORA.
    Response: This rule is effective 6 months from the date of 
publication.
    2. Comment: One commenter requested that the Secretary insert 
language from sections of the Social Security Act so the reader does 
not have to look up sections of the Act.
    Response: To do so would significantly increase the length of 
regulatory language. We have attempted to ensure there are no cross-
references without a brief summary of the content of those statutory 
sections.
    3. Comment: This regulation possibly sets up competing public 
interests. For example: Pitting the confidentiality regulation versus 
the openness of the judicial system and court files; the regulation 
versus the State's public policy of open government (Sunshine laws); 
the regulation versus the State Constitution's provision for access to 
public records and meetings.
    Response: These regulations govern disclosure of IV-D data under 
sections 454(26), 453, and 454A of the Act. A wide array of personal 
information is available to IV-D agencies and it is imperative that the 
Federal and State governments protect these data to the greatest extent 
possible and use them only where necessary for authorized purposes. 
Child support records, including Federal PLS information, contain 
information that poses a high risk of identity theft, and thus should 
be treated with special care.
    4. Comment: One commenter asks why this rule includes proposed 
additional restrictions on sharing certain Federal data with other 
public agencies in one part of the rule while proposing granting broad 
access to State data to private entities in another part. According to 
the commenter, use of data disclosed to other State agencies can be 
easily monitored while private entities are less accountable, harder to 
monitor, and more likely to use data for unauthorized purposes.
    Response: This regulation is determined in large part by explicit 
Federal statute. Section 454(8) of the Act says that ``the agency 
administering the (State) plan will establish a service to locate 
parents * * * and shall, subject to the privacy safeguards required 
under paragraph (26), disclose only the information described in 
sections 453 (Federal PLS) and 463 (Use of the Federal PLS in 
connection with enforcement of determination of child custody and in 
cases of parental kidnapping) to the authorized persons specified in 
such sections for the purposes specified in such sections.'' With 
respect to private entities the regulation at Sec.  302.35(c)(3) 
requires an attestation process that must be used by the resident 
parent, legal guardian, attorney, or agent of a child who is not 
receiving assistance under title IV-A of the Act when obtaining 
information on or to facilitate the discovery of any individual in 
accordance with section 453(a)(2) of the Act.
    5. Comment: In 42 U.S.C. 654(26), Congress allowed States to have 
flexibility in crafting confidentiality requirements. States may find 
it difficult to follow a regulatory ``one size fits all'' approach and 
make changes to the law in matters over which child support agencies 
have no authority.
    Response: The regulation reflects statutory requirements as stated 
in section 454(26) of the Act that a child support State Plan must 
provide that States have in effect safeguards, applicable to all 
confidential information handled by the State agency, that are designed 
to protect the privacy rights of the parties involved. It also reflects 
other statutory restrictions on disclosure in sections 453 and 454A of 
the Act.
    6. Comment: If the Federal Bureau of Investigations (FBI) was 
called to investigate possible sources of threats to a IV-D caseworker 
and the FBI demanded the names and contact information for every person 
on the IV-D employee's caseload, would the IV-D agency be justified in 
sharing this

[[Page 56427]]

information with the FBI? Does protecting a IV-D worker from potential 
harm fall under the provisions of a IV-D purpose?
    Response: The IV-D agency could share the information because the 
investigation relates to the administration of the IV-D program.
    7. Comment: Two commenters say that OCSE should reaffirm its 
commitment to additional privacy safeguards for family violence victims 
by incorporating references to the family violence indicator in the 
rule.
    Response: We agree and have added language to Sec.  303.21(e) that 
provides explicit reference to required family violence indicators for 
potential domestic violence or child abuse.
    8. Comment: Two commenters are concerned that when enforcing a 
referral from a Tribal IV-D agency located in that State or in another 
State, a State would be unable to provide information about whether a 
Federal tax refund offset occurred and the amount collected. This would 
make it impossible for the Tribal IV-D agency to correctly adjust the 
arrearage to give the noncustodial parent credit for the tax refund 
offset. Another commenter believes the Internal Revenue Services (IRS) 
statute at 26 U.S.C. 6103 sufficiently provides for confidentiality 
limitations for States to disclose information to Tribes and States. 
Tribal IV-D agencies do not need another regulation to further burden 
negotiations with State IV-D agencies.
    Response: Policy Interpretation Question (PIQ) 07-02 addresses 
this. See http://www.acf.dhhs.gov/programs/cse/pol/PIQ/2007/piq-07-02.htm. A State may submit arrearages owed in Tribal IV-D cases for 
Federal tax refund offset if the following conditions are met:
    1. The approved Tribal IV-D plan or plan amendment indicates that 
the Tribe has entered into a cooperative agreement with the State under 
Sec.  309.60(b) and (c) for the State to submit arrearages owed in 
Tribal IV-D cases for Federal tax refund offset. The Tribe must submit 
as part of its Tribal IV-D plan or plan amendment copies of any such 
agreement. The regulations governing Tribal IV-D programs at Sec.  
309.35(d) require that after approval of the original Tribal IV-D 
program application, all relevant changes required by new Federal 
statutes, rules, regulations, and Department interpretations are 
required to be submitted so that the Secretary may determine whether 
the plan continues to meet Federal requirements and policies.
    2. The cooperative agreement between the Tribe and State includes a 
statement that the Tribal IV-D program will comply with all 
safeguarding requirements with respect to Federal tax refund offset in 
accordance with Sec.  309.80, section 454(26) of the Act and the 
Internal Revenue Code 26 U.S.C. 6103, which prohibits the release of 
IRS information outside of the IV-D program.
    3. The Tribal IV-D plan provides evidence that the Tribe's 
application for IV-D services under Sec.  309.65(a)(2) includes a 
statement that the applicant is applying for State IV-D services for 
purposes of submitting arrearages for Federal tax refund offset.
    9. Comment: One commenter says there must be an easy-to-use 
procedure for individuals misidentified by child support database 
programs to correct agency records and also requests that this rule 
provide for a system to flag errors where files are ``mixed.''
    Response: If an individual believes he or she has been 
misidentified by the IV-D system, he or she should contact the 
appropriate IV-D office. The IV-D program should fix the error as soon 
as possible. These regulations do not go into the details of step-by-
step State case processing that would make such a proposal appropriate.
    10. Comment: One commenter requests that language in the preamble 
to the proposed rule be incorporated into the actual regulation. Page 
60044, column 3 says ``programs receiving confidential information may 
use the information only for the purpose for which it was disclosed and 
may not redisclose the information.'' However, this restriction on 
redisclosure is not in the text of the proposed rule.
    Response: This regulation is for title IV-D programs and we cannot 
regulate other programs once information is disclosed. However, State 
IV-D programs must make clear to those authorized to receive child 
support data, the limited purpose for which information may be used. 
Improper use or disclosure would be governed by State and Federal 
statutes that impose penalties for such disclosure.
    11. Comment: One commenter says there is no legislative history 
that Congress contemplated expanding access to State databases and 
records beyond the IV-D program or beyond what is otherwise permitted 
by State law.
    Response: The provisions relating to the State PLS implement 
section 454(8) of the Act, 42 U.S.C. 654(8), which requires each State 
plan for child support enforcement to provide that the State will: (1) 
Establish a service to locate parents utilizing all sources of 
information and available records including the Federal PLS; and (2) be 
subject to the privacy safeguards in section 454(26) of the Act, 42 
U.S.C. 654(26) and disclose only the information described in sections 
453 and 463 of the Act to the authorized persons specified in those 
sections. This language authorizes a system of disclosure of State data 
based on the system in place for the Federal PLS. We have revised the 
regulation to recognize the possibility of more restricted access to 
State data by incorporating the language ``in accordance with State 
law.''
    12. Comment: One commenter is concerned that States are not 
informing individuals when disclosure of their Social Security Number 
(SSN) to another source will occur and by collecting noncustodial 
parents' SSNs from a third party source.
    Response: States are required to comply with section 7(b) of the 
Privacy Act and its disclosure requirements (5 U.S.C. 552a). In all IV-
D cases, the Privacy Act requires a Federal, State, or local government 
agency to provide certain information to the individual from whom a SSN 
is requested by the agency.
    13. Comment: One commenter says that notice and due process are 
required when States use, release, or enter data into State PLS and 
Federal PLS computer interface records on individuals who do not need 
to be located for purposes of child support.
    Response: Access to personal data covered by the regulation is 
authorized as explicitly provided for in Federal title IV-D statute.

Section 302.35, State Parent Locator Service

    1. Comment: Two commenters have major concerns with this section. 
One would like to know the reason for these amendments, opposes the 
requirement that the State PLS provide information to requestors with 
regard to in-state sources, and strongly recommends that references to 
access and release of in-state State PLS information be deleted from 
the proposed regulation. The other commenter is concerned with this 
section and believes the regulation erodes the capability of the child 
support program to safeguard confidential information. The regulation 
creates a presumption, not supported by law, that non-IV-D entities may 
access in-state resources.
    Response: A State/Federal workgroup, established after the passage 
of the Personal Responsibility and Work Opportunity Reconciliation Act,

[[Page 56428]]

recommended that these regulations be promulgated in order to clarify 
the statutory limitations of sharing data. In response to comments we 
have revised the regulation to provide State searches only to the 
extent authorized by State law. With regard to in-state sources, 
section 454(8) of the Act says a State shall be subject to the privacy 
safeguards in section 454(26) of the Act, 42 U.S.C. 654(26).
    2. Comment: One commenter asks why the regulation does not clearly 
tie authorized persons to the authorized purposes for which they may 
receive locate information, addressing persons and in separate 
subsections.
    Response: We disagree. The authorized persons and purposes are 
clearly stated in the regulation and are identical to those of the 
Federal PLS. Appendix A displays this set of authorities.
    3. Comment: One commenter would like to eliminate the reference in 
Appendix A that says ``No automated system'' for Authorized Purpose B, 
C, and D.
    Response: This Appendix and others have been revised and/or added. 
Any limitation of disclosure of automated systems data is required by 
section 454A of the Act.
    4. Comment: One commenter proposes adding a section to this 
provision that requires maintenance of an audit log to deter employee 
misuse of databases. Audit logs hold individuals responsible for their 
use of personal information databases and would record who accesses 
personal information, and the purpose for which it was accessed.
    Response: Federal requirements do not prescribe this level of 
mandate on State responsibilities. It is up to the State to implement 
necessary and appropriate methods to ensure that access and disclosure 
is for proper purposes and only to authorized persons. States have 
discretion, however, to implement similar audit procedures.
    5. Comment: One commenter recommends moving Sec.  302.35(b) closer 
to Sec.  302.35(a) to clarify that the Federal PLS is considered part 
of the State PLS for IV-D cases and for authorized non-IV-D purposes 
under this section.
    Response: The Federal PLS is not part of the State PLS. 
Subparagraph (b) is based on the requirement that requests for Federal 
PLS data must flow through the State PLS.
    6. Comment: One commenter asks for confirmation that together 
Sec. Sec.  302.35(a)(1) and (2) and 302.35(c) limit the use of the 
State PLS for IV-D cases to only IV-D purposes but permits the use of 
the State PLS for non-IV-D individuals or non-IV-D cases for the 
authorized non-IV-D purposes.
    Response: Section 302.35(a)(1) and (2) limit the use of the State 
PLS for IV-D cases to only IV-D purposes but permits the use of SPLS 
for non-IV-D individuals or non-IV-D cases for the authorized non-IV-D 
purposes.
    7. Comment: One commenter suggests that the title of paragraph (1) 
be changed to ``For IV-D cases and IV-D purposes'' for clarity.
    Response: For clarity, we have revised the title of paragraphs (1) 
and (2) to distinguish between IV-D requests and non-IV-D requests.
    8. Comment: One commenter asks that the Office clarify why locate 
information, restricted for custody and visitation purposes to the most 
recent address and place of employment, requires such strict 
confidentiality where there is not a family violence indicator or other 
information giving rise to safety concerns for the parties. The address 
of a litigant to a court proceeding is considered public information 
and necessary for the case to proceed.
    Response: The restriction is statutory. Section 463(c) of the Act 
[Use of Federal PLS in connection with the enforcement or determination 
of child custody and in cases of parental kidnapping of a child] 
contains the restriction ``Only information as to the most recent 
address and place of employment of any parent or child shall be 
provided under this section.''
    9. Comment: In addition to using the State PLS for locating either 
parent for IV-D purposes, one commenter asks that the agency also be 
able to use the State PLS for locating the child for IV-D purposes.
    Response: IV-D agencies already have that authority with the 
Federal PLS. Section 453(a)(2)(iii), which states ``to whom such an 
obligation is owed'' includes the child. However, in response to this 
comment, we have added ``children'' to Sec.  302.35(a)(1).
    10. Comment: One commenter points out what he or she believes to be 
a mistake: ``Child'' is included in Appendix A to Sec.  302.35 under 
``Authorized Purpose'' but is not included in the preamble or in the 
regulation. Another commenter suggests that this section of the 
regulation be revised by deleting the words ``noncustodial parents'' 
and inserting ``a parent or child.''
    Response: We agree and have included reference to custodial 
parents, noncustodial parents and children in both the preamble and the 
regulation at Sec.  302.35.
    11. Comment: One commenter suggests substituting the word 
``parties'' for ``parents'' since the IV-D or a cooperating agency may 
be enforcing a support order in a IV-D case for a custodial party other 
than a parent.
    Response: The statute uses the term parent, although we recognize 
there may be instances where children are in the custodial care of 
individuals other than their parents.
    12. Comment: One commenter points out that the reference to Sec.  
303.3 in the second sentence of Sec.  302.35(a)(1) creates confusion 
because Sec.  303.3 only addresses locate requirements for noncustodial 
parents in IV-D cases. The commenter assumes this is not the intent of 
the proposed regulation and, to avoid confusion, recommends removing 
the second sentence of Sec.  302.35(a)(1) because the first sentence 
clearly conveys the intent of the subsection.
    Response: We agree and have removed the reference to Sec.  303.3, 
which only applies to location of noncustodial parents in IV-D cases.
    13. Comment: Several commenters had comments relating to the use of 
the State Disbursement Unit in non-IV-D case situations. Since it is a 
IV-D function to disburse support to custodial parents in non-IV-D 
cases subject to income withholding, can a IV-D program use the State 
PLS or Federal PLS to locate a non-IV-D custodial parent for purposes 
of disbursing child support?
    Response: Yes, this would be a legitimate use of locate sources for 
IV-D agencies seeking to locate such custodial parents in non-IV-D 
cases subject to income withholding.
    14. Comment: One commenter points out a contradiction in the 
regulation regarding the use of in-state locate sources. On the one 
hand, Sec.  302.35(a)(2) provides a mechanism for States to ``opt out'' 
of using in-state locate sources in response to a non-IV-D request if 
such use is ``prohibited by State law or written policy.'' Yet Sec.  
302.35(e) states ``the State PLS shall disclose * * * information from 
in-state locate sources as required by this section and described in 
Sec.  303.3(b)(1).'' This latter language suggests that expanded access 
is required regardless of State law or written policy, which is 
contrary to the intent expressed in the preamble to the proposed rule, 
as well as the intent of the statute.
    Response: We agree. We have revised the language to provide in-
state searches in accordance with State law.
    15. Comment: One commenter requests that the following terms be 
eliminated in the final rule: Non-IV-D individual(s); non-IV-D case(s); 
non-IV-

[[Page 56429]]

D request(s) and be replaced with ``non-IV-D purpose'' and another 
commenter asked that the Office provide a definition of non-IV-D 
purpose.
    Response: Reference to all four terms is appropriate each time a 
specific term is used in the regulation. Non-IV-D purpose is addressed 
in paragraph (d): the State PLS shall obtain location information under 
this section only for the purposes specified in paragraphs (d)(1) and 
(d)(2) of Sec.  302.35. Section 453 of the Act provides statutory 
authority for using the Federal PLS for the purpose of locating any 
individual who has or may have parental rights with respect to a child, 
enforcing any State or Federal law with respect to the unlawful taking 
or restraint of a child; or making or enforcing a child custody or 
visitation determination.
    16. Comment: One commenter seeks confirmation that taken together, 
these sections mean that once a State establishes policy to define 
State PLS sources of information, any other data contained in the 
State's computerized support enforcement system may not be released 
under this section, regardless of the source of that information.
    Response: The State's computerized support enforcement system is 
not a source of information for the State PLS. Access to any data on 
the statewide automated system is limited in sections 454A(d) and (f) 
of the Act and 45 CFR part 307. Independently verified information may 
be released to those authorized to access and use the information. For 
example, if a State determines that an address is correct through a 
postal verification the State can share the information it acquired 
from the second source (the Post Office).
    17. Comment: One commenter strongly suggests that this proposed 
regulation be modified to make it clear that it is the Federal OCSE's 
responsibility to exclude IRS information, or MSFIDM information when 
in receipt of a non-IV-D request for FPLS information.
    Response: If the State codes its requests correctly, (e.g., pk, ad, 
etc.), OCSE only returns appropriate information for that request. 
Please see the FCR Interface Guidance Document (Chart 6-14) http://www.acf.hhs.gov/programs/cse/newhire/library/fcr/fcr.htm. However, the 
State may have such information in its files and the State bears the 
responsibility to assure that only authorized information is released 
in response to a request.
    18. Comment: One commenter strongly suggests that there be a simple 
system set up for OCSE to receive formal requests from States 
(preferably online with a predefined outgoing and incoming data format) 
that would ensure that all requests to the Federal PLS are properly 
documented and the authorized information would be returned in a pre-
defined format suitable to direct redisclosure to authorized 
requestors. The States' only duty would be to submit and return 
requests for information on behalf of non-IV-D authorized requestors. 
This would greatly enhance the security and confidentiality of this 
Federal requirement.
    Response: The FCR Interface Guidance Document, mentioned above, 
provides this service. For example, a Foster Care case locate-only code 
provides only authorized information but a request with a IV-D code 
provides much more data because the request is on a IV-D case.
    19. Comment: One commenter believes a better approach for this 
section would be for those individuals who desire child support 
services under the title IV-D program, including location services, to 
apply for services.
    Response: The Federal statute at sections 453 and 454(8) of the Act 
require States to disclose certain information to authorized non-IV-D 
persons for authorized purposes. Such purposes includes access for 
locate purposes. There is no requirement that individuals apply for IV-
D services to receive requested information.
    20. Comment: One State does not support requiring the State PLS to 
release information gathered from in-state sources to non-IV-D 
individuals unless there is a State law or policy prohibiting such a 
release as provided in Sec.  302.35(a)(2)(i) and believes this 
requirement exceeds the authority granted in 42 U.S.C. 653(a)(2) which 
pertains only to Federal PLS information. Instead, the State favors a 
provision that authorizes the State PLS to release in-state source 
information only if permitted under State law or regulation.
    Response: We accept the commenter's position and have revised the 
regulation accordingly.
    21. Comment: Two commenters would like recognized that the preamble 
claims States have interpreted current law ``to permit use of State 
resources for non-IV-D location purposes, including location for 
custody and visitation purposes'' and notes that while a handful of 
States may permit broad access to State databases by private entities, 
these practices are not widespread and are not based on a common or 
settled interpretation of Federal law. Because some States have chosen 
to disclose State PLS and Federal PLS information to non-IV-D 
requestors should not be the basis of requiring all States to do so.
    Response: See response to comment 20.
    22. Comment: A commenter says that if a State wishes to disclose 
State PLS data, it should have to have a written law or policy 
describing what it will disclose, to whom it will disclose it, and 
under what circumstances. In the absence of such a policy, State PLS 
data should not be disclosed to non-IV-D entities.
    Response: It is up to the State to set standards for disclosure.
    23. Comment: One commenter believes the final regulation should 
acknowledge that there may be other State laws governing the disclosure 
of personal data to nongovernmental entities if any mention of State 
duty to provide State PLS data is retained.
    Response: We believe the revised language ``in accordance with 
State law'' takes this into account.
    24. Comment: One commenter would like clarification on the reason 
for the restriction that prevents the State PLS from searching the 
statewide computer system or providing a non-IV-D requestor with any 
information contained in the system. The commenter asks for the 
rationale behind this restriction and an explanation on how OCSE 
envisions compliance by States whose non-IV-D cases are part of their 
statewide computer system.
    Response: Access to information in the IV-D automated system is 
strictly limited by Federal statute. Section 454A of the Act restricts 
disclosure of information in a State IV-D automated system to purposes 
related to the administration of the IV-D program so non-IV-D 
requestors cannot get such information.
    25. Comment: One commenter says that the language referring to the 
support enforcement computer system (along with Appendix A) can be read 
to prohibit the release of information contained in the system even 
where that information was derived from non-IRS or non-MSFIDM sources 
and asks whether this was the intent.
    Response: Yes, this is the intent. The Federal statute at sections 
454A(d) and (f) clearly restricts access to and disclosure of State 
automated child support system data.
    26. Comment: One commenter requests further explanation or 
clarification regarding the prohibition against releasing information 
from automated support enforcement systems to fulfill non-IV-D 
requests. Clarification is needed because any information received in 
the course of IV-D program business is typically

[[Page 56430]]

registered in such system; therefore, exactly what may be legally 
disclosed under Sec.  302.35(a)(2)(ii) is unclear.
    Response: Section 454A of the Act does not authorize access to 
State systems for non-IV-D purposes. Therefore, a State may only seek 
or locate information in a non-IV-D case directly from the State PLS or 
from the Federal PLS and disclose that data to a non-IV-D requestor. 
(Also see <greek-i> 27. below.)
    27. Comment: One commenter seeks clarification that the idea of 
Sec.  302.35(a)(2)(ii) is that if a State receives a non-IV-D request, 
it may not look to any information ``existing'' on its system but 
rather must conduct State PLS and Federal PLS searches for information 
and only the information resulting from those searches could be 
released, as authorized.
    Response: Yes, if a State receives a non-IV-D request, it may not 
look to any information ``existing'' in its system but rather must 
conduct State PLS and Federal PLS searches for information and only the 
information resulting from those searches can be released.
    28. Comment: One commenter notes that Sec.  302.35(c)(3) indicates 
that the State PLS may use some sources of data for non-IV-D location 
requests. However, it is noted in other parts that the State PLS shall 
not release information from the computerized support enforcement 
system. Many of the location sources the State agency uses feed into, 
and become part of, the computerized support enforcement system. Is the 
regulation forbidding the use of the CSE system to access otherwise 
permissible State sources of information?
    Response: The regulation prohibits release of information residing 
on the State's computerized support enforcement system, unless 
explicitly authorized. States may only share information on their 
automated system with authorized entities under 45 CFR Part 307. The 
State PLS may use the automated system to seek information from other 
sources as part of its location efforts in IV-D cases.
    29. Comment: One commenter proposes new language for Sec.  
302.35(a)(2)(ii) ``* * * IRS information or financial institution data 
match information relating to a financial account * * *'' Incorporating 
this language would allow other information (such as address 
information) from MSFIDM to be released pursuant to a non-IV-D request.
    Response: We are not incorporating the proposed change because of 
the need to safeguard all data received from a financial institution 
data match.
    30. Comment: One commenter wants IV-B/IV-E agencies to be able to 
view limited, address-related data from other States' IRS and financial 
institutions if such information could assist in locating the parent or 
person who could be a child's parent and is otherwise not available in 
any other system.
    Response: There is no authority under title IV-D of the Act or the 
Internal Revenue Service Code to allow this.
    31. Comment: One commenter disagrees with prohibiting the State PLS 
in non-IV-D requests from disclosing information from the computerized 
support system because 42 U.S.C. 654(8) mandates that States use ``all 
sources of information and available records'' to locate parents 
regardless of whether they are involved in a IV-D case. The State could 
not defend such a policy to its judges and asks why such a prohibition 
in this rule is necessary.
    Response: A State's defense would be that Federal law prohibits 
such disclosure. Section 454A(f) of the Act specially governs data in 
IV-D automated systems and strictly limits disclosure.
    32. Comment: One commenter asks what is the statutory basis for 
prohibiting disclosure of MSFIDM information for all non-IV-D requests. 
Because Federal statute limits use of financial record information from 
a financial institution ``only for the purpose of * * * establishing, 
modifying or enforcing a child support obligation'', it appears FIDM 
information could be used for both IV-D and non-IV-D child support 
purposes.
    Response: IV-D programs have statutory responsibility to safeguard 
confidential information not specifically authorized for release under 
section 453 of the Act. The IV-D program has broad access to certain 
data of all sorts from myriad sources. We believe it is essential to 
strictly limit access to data. Section 469A of the Act only provides 
for nonliability for financial institutions for disclosures to a State 
Child Support Enforcement agency or to the Federal PLS for purposes of 
section 466(a)(17) of the Act. The statute provides that the 
information be used only for IV-D purposes.
    33. Comment: One commenter supports while another seeks 
clarification that Sec.  302.35(a)(2)(ii) prohibits release of 
information from the State's computerized support enforcement system 
even if that information is obtained from non-IRS or non-MSFIDM 
sources.
    Response: States may not release any information in a State's IV-D 
automated system except to specifically authorized requestors and for 
purposes related to the administration of the IV-D program. Non-IV-D 
access is not authorized under section 454A of the Act. See Sec.  
307.13.
    34. Comment: One commenter says that because States can not 
transmit non-IV-D requests to another State, an authorized requestor 
would be required to make multiple requests.
    Response: This is correct. However, an authorized requestor can 
obtain certain information from the Federal PLS which may contain some 
of the State data, namely the employment data.
    35. Comment: One commenter notes that while Sec.  302.35(a)(2)(iii) 
specifies that for non-IV-D location requests, the IV-D program need 
not make subsequent location attempts if a location attempt fails, the 
preamble discussion says that a relocation attempt would be required if 
a requestor demonstrates that there is reason to believe new 
information exists. The proposed rule should clearly state that a 
relocation attempt is a requirement in this circumstance, if that is 
the intent.
    Response: We have changed the language to clarify that no 
subsequent attempt to locate is necessary unless a new request is 
submitted.
    36. Comment: One commenter asks under what circumstance the State 
PLS can provide Federal PLS with information.
    Response: The State IV-D program is required to provide State 
Directory of New Hires and Federal Case Registry information. In 
addition, under section 453(e), the Federal PLS may seek information 
from any of the ``departments, agencies, or instrumentalities of the 
United States or of any State.''
    37. Comment: Child welfare staff in one State request a broader 
interpretation of Sec.  302.35(a)(2)(iii), whereas, in order to 
facilitate the administration of programs under titles IV-B or IV-E, 
State PLS and Federal PLS locate attempts should occur at the same 
frequency as for IV-D programs (quarterly, at a minimum, or when new 
information leads are received).
    Response: State IV-D agencies are not required to repeat locate 
results for non-IV-D entities unless a new request is submitted. 
However, States are free to establish the extent and frequency of 
authorized IV-B or IV-E locate requests.
    38. Comment: One commenter believes that because Sec.  
302.35(a)(2)(iv) prohibits making State PLS requests separate from 
Federal PLS requests in non-IV-D cases, there is no need to develop a 
separate standard for the State PLS. Another commenter requests 
clarification that even if it can get the

[[Page 56431]]

requested information from State sources, the State must use the 
Federal PLS. If so, why would that be necessary?
    Response: Based on comments received and the desire to allow States 
to retain the flexibility to conduct either State PLS or Federal PLS 
searches (or both) we have removed Sec.  302.35(a)(2)(iv) in the final 
rule. If a State successfully uses State PLS sources and locates the 
individual sought, there may be no need to submit a request to the 
Federal PLS. However, if the IV-B or IV-E agency wants a Federal PLS 
request, the State must honor that request.
    39. Comment: If a IV-D caseworker is aware of a new address for a 
noncustodial parent when the IV-E agency requests the address for an 
authorized purpose, can the IV-D program provide the address directly 
or must the agency conduct an independent State PLS search?
    Response: If the information is already known, the IV-D agency is 
authorized to release the information under Sec.  307.13(a)(3) and 
section 454A(f)(3) of the Act. This permits exchanging information with 
State Medicaid agencies and other programs designated by the Secretary 
or other State or Federal agencies to carry out this part, subject to 
section 6103 of the Internal Revenue Code of 1986.
    40. Comment: One State recommends that States retain the ability to 
designate other IV-D offices within the State to submit requests to the 
Federal PLS when location services are needed instead of requiring a 
``central'' State PLS.
    Response: We tried to accommodate multiple State PLS locate 
interfaces in the past; however, from a cost-effectiveness and quality 
control standpoint, States now are limited to a central State PLS 
interface with Federal PLS.
    41. Comment: One commenter wants acknowledgment that although on 
the surface this seems to provide flexibility, Sec.  302.35(c) sets up 
the strong possibility of inconsistency among States and will allow 
forum shopping for the best deal by ``attorneys or agents of the 
child.''
    Response: Section 302.35(a)(2)(i) allows access to the State PLS in 
accordance with State law. As such, State practices may vary. We 
support State flexibility in this regard.
    42. Comment: One commenter asks whether there is any authority that 
supersedes Federal law on releasing information only to persons 
authorized under sections 453 and 463 that would require IV-D agencies 
to comply with a request from the Department of Homeland Security (DHS) 
since DHS is not an ``authorized person'' under sections 453 or 463 of 
the Act.
    Response: There is no authority to override sections 453 and 463 of 
the Act.
    43. Comment: In the final regulations one commenter requests that 
States have the ability to deny requests from non-IV-D entities which 
have a track record of obtaining information for purposes beyond those 
contemplated by the statute as well as those who have not properly 
safeguarded the information they have obtained.
    Response: A fine for misuse of the NDNH in section 453(l) of the 
Act can be applied. Also, Sec.  303.21(f) gives ability for State to 
impose fines or other criminal or civil sanctions. Finally, attestation 
is designed to protect/alleviate this issue. A IV-D agency should 
document instances of abuse and if a non-IV-D entity is known to abuse 
access to data, access should be denied and the reason noted. States 
should have written policy which may provide guidance in this area.
    44. Comment: One commenter would like confirmation regarding the 
extent to which staff determining food stamp eligibility have access to 
confidential data or location data maintained or obtained by the IV-D 
program.
    Response: Food Stamp agencies have access to the State Directory 
for New Hires for purposes of verifying eligibility for the program. 
See 42 U.S.C. 653A(h)(2).
    45. Comment: Two commenters suggest that Tribal IV-D agencies be 
specifically included as an ``authorized person'' in Sec.  
302.35(c)(1).
    Response: Tribal IV-D agencies have access to the State PLS if they 
request assistance from a State IV-D agency and submit a referral for 
case information. The State agency will submit the case to the State 
PLS as part of its responsibilities with respect to the case.
    46. Comment: One commenter understands the proposed change to 
permit a court to obtain location information for the purposes of 
establishing a support order, even in a non-IV-D case. Yet, the court 
need not attest to its intent; whereas an attestation is required from 
a resident parent, legal guardian, attorney, or agent. Is this an 
oversight or an intentional distinction?
    Response: It is intentional because courts are governmental 
entities. The attestation is required of private citizens or 
nongovernmental entities.
    47. Comment: One commenter recommends changing the term ``aid'' to 
``assistance as defined at 45 CFR 260.31'' in Sec.  302.35(c)(3). This 
way, there will be a clear national policy in this area.
    Response: We have changed the term ``aid'' to ``assistance'' in 
Sec.  302.35(c)(3) because that is the terminology used in the statute. 
We have not cited IV-A regulation, however, since it could change in 
the future.
    48. Comment: One commenter asks how long must the locate 
application, attestation, and evidence of authorization be maintained 
by the State PLS? Does the standard three-year record retention policy 
apply to these documents?
    Response: The three-year record retention rule, as stated in 45 CFR 
92.42(b), applies to these documents.
    49. Comment: One commenter would like to eliminate the reference to 
a child not receiving aid under title IV-A of the Act in Sec.  
302.35(c)(3) and wants corresponding changes to be made to Appendix A 
to Sec.  302.35(c)(3).
    Response: Section 453 of the Act requires the inclusion of this 
exception.
    50. Comment: Three commenters ask if a requestor attests to the 
purpose and use of information that is later discovered to be 
fraudulent in nature; will the IV-D program be found liable by OCSE? 
One commenter asks what the penalties are if a requestor violates the 
attestation or submits a fake ``authorization''?
    Response: The IV-D agency would not be responsible if it had the 
attestation on file. Any requestor who violates requirements for 
receiving Federal PLS information would be subject to any Federal or 
State penalties.
    51. Comment: One commenter asks whether a State is required to pass 
special laws imposing penalties for failure to comply with the 
provisions of the attestation.
    Response: States have discretion to pass such laws.
    52. Comment: One commenter agrees with the proposed rule requiring 
the requestor to provide evidence of being the legal guardian, attorney 
of the child or agent of the child. However, he or she suggests if the 
requestor is a resident parent, the requestor only attest to being so 
rather than providing evidence. It would be difficult for the State PLS 
to identify proof of resident parent status otherwise.
    Response: We agree with the commenter and have changed the language 
in Sec.  302.35(c)(3)(iii) to require the resident parent to attest to 
being the resident parent.
    53. Comment: One commenter asks whether private child support 
enforcement agencies have to provide ``evidence of a valid contract'' 
with each request for locate or may the IV-D

[[Page 56432]]

program permit a private child support enforcement agency to provide an 
annual, blanket attestation that a valid contract exists for each 
request made during the year?
    Response: The private child support enforcement agency may not 
provide an annual blanket attestation that a valid contract exists for 
all requests made during that year.
    54. Comment: One commenter recommends a change to Sec.  
302.35(c)(3)(iii) so that both attorneys and agents who allege that 
they are representing a child are required to provide a valid contract 
that meets any requirements under State law or policy for acting as an 
agent of the child. Otherwise, the regulation will violate the 
statutory authority on which it is based.
    Response: The statute does not specify any proof or evidence that 
must be provided. Section 302.35(c)(3)(iii) indicates that an 
authorized person provide evidence that the requestor is the legal 
guardian, attorney, or agent of a child not receiving assistance under 
title IV-A, and if an agent of such a child, evidence of a valid 
contract that meets any requirements in State law or written policy for 
acting as an agent.
    55. Comment: One commenter believes that because of the potential 
for disclosure to unauthorized entities, Sec.  302.35(c)(3)(iii) should 
require the requestor to furnish a copy of the actual contract, not 
just ``evidence of a valid contract.'' Another commenter wants 
clarification on what evidence is other than a copy.
    Response: Evidence of a valid contract may be defined by the State. 
Therefore, a State may require the requestor to furnish a copy of the 
actual contract.
    56. One commenter suggests adding the words ``of the child'' after 
the word ``agent'' in Sec.  302.35(c)(3)(iii) in order to track the 
statute and make clear that the only agents who are authorized persons 
are agents of the child, not of a parent.
    Response: We agree with the commenter and have revised the 
regulation to reflect the statutory language.
    57. One commenter believes that Sec.  302.35(c)(3)(iii) will be 
hard to meet for a requestor who claims to be ``an agent of such a 
child.'' Existing State laws ``for acting as an agent'' may not be 
clear or complete to support this process.
    Response: This is an issue for a State to address.
    58. Comment: Two commenters question whether private collection 
agencies (PCAs) and attorneys meet the statutory definition of 
``authorized persons'' and are concerned about giving private 
collection agencies access to information. There is no clear definition 
of ``attorney or agent of the child'' in the regulations or in statute 
and in one State, PCAs do not fall within this definition. Most private 
attorneys in child support matters represent a parent, not a child. PCA 
contracts are entered into by a custodial parent in her (sic) own 
right, not as the child's legal agent. An agency relationship is 
created by expressed or implied contract or by operation of law, and 
generally is governed by State law, not Federal law. In addition, it is 
a settled matter of black letter law that a contract must be between 
competent parties and that a minor is under the age of legal 
competence. Therefore, a custodial parent's contract with a PCA does 
not make the PCA an ``agent of the child'' for purposes of locate 
request under section 453 of the Act.
    Response: AT-02-04 clarifies policy and procedures for providing 
Federal PLS locate services to persons who qualify as an ``an agent of 
the child'' for child support purposes. The Action Transmittal lists 
the definitions of ``authorized persons'' set forth in section 
453(c)(1) through (3) of the Act, including the resident parent, legal 
guardian, attorney, or agent of the child. We do not read section 453 
of the Act to prohibit a State from sending appropriate Federal PLS 
information to the resident parent in care of a PCA if, under State 
law, the PCA ``stands in the shoes'' of the resident parent and the 
State has evidence in the form of an attestation by the requestor, 
under Sec.  302.35(c)(3)(iii) that the parent, in fact, has authorized 
the PCA to act on his or her behalf.
    59. Comment: One commenter wants changes made to reflect that 
States should be required to develop standards and protocols for 
refusing to provide information to non-IV-D entities when such entities 
fail to safeguard the information they obtain. These standards should 
include provisions for notifying such entities of what restrictions 
apply, what protections they must have in place, and what the 
consequences of failure to safeguard the information are.
    Response: We agree that such standards are reasonable but leave 
such action to State discretion.
    60. Comment: One commenter believes that the administrative cost 
associated with developing and implementing a fee for non-IV-D entities 
would far outweigh any benefit.
    Response: The fee for Federal PLS services is a statutory 
requirement under section 453(e)(2) of the Act.
    61. Comment: One commenter asks whether any fee collected for the 
State's PLS services needs to be claimed as program income.
    Response: Any fee collected for the State's State PLS services is 
considered program income under 45 CFR 304.50 and must be reported.
    62. Comment: One commenter seeks clarification that the title: ``To 
locate an individual who may be the parent of a child in a IV-D or non-
IV-D case'' refers to locating the custodial as well as noncustodial 
parent.
    Response: The final rule changes the title of Sec.  302.35(d)(1) 
to: ``To locate an individual with respect to a child in a IV-D, non-
IV-D, IV-B, or IV-E case'' in order to better reflect the statutory 
language in section 453(a)(2)(A) of the Act. This section covers 
locating both the custodial as well as the noncustodial parent.
    63. Comment: One commenter asks that the following ``purpose'' be 
added to Sec.  302.35(d)(1): The State PLS shall locate individuals for 
the purpose of: facilitating informed and timely decisions about child 
welfare and permanency. The rationale is that locating parents for IV-
B/IV-E purposes goes beyond just ``establishing parentage'' or 
``determining who has or may have parental rights to a child'' as the 
language in the proposed rule currently reads. Another commenter asks 
if ``for determining who has or may have parental rights with respect 
to a child'' allow child welfare staff in the IV-B/IV-E agencies to 
request the IV-D program to locate and release address information for 
the purpose of placement of a child?
    Response: We have inserted reference to title IV-B and IV-E to 
Sec.  302.35(d)(1) to make clear that those agencies have access to 
State PLS locate functions for the purposes stated. The purpose of 
``determining who has or may have parental rights to a child'' could be 
related to permanency planning. The language used is that which is 
stated in section 453 of the Act. To the second question, only persons 
as authorized under section 453(a)(2)(A) of the Act may request the IV-
D program to locate and release address information for the purpose of 
placement of a child.
    64. Comment: Section 302.35(d)(1) states: the State PLS shall 
locate individuals for the purpose of establishing parentage, or 
establishing, setting the amount of, modifying, or enforcing child 
support obligations or for determining who has or may have parental 
rights with respect to a child. For these purposes, only information 
available through the Federal PLS or the State PLS may be provided. 
This

[[Page 56433]]

information is limited to Social Security Number(s), most recent 
address, employer name and address, employer identification number, 
wages or other income from, and benefits of, employment, including 
rights to, or enrollment in, health care coverage, or asset and debt 
information. One commenter questions why there is a restriction that 
``for these purposes, only information available through the Federal 
PLS or the State PLS may be provided* * *''?
    Response: This restriction exists because Sec.  302.35(d)(1) does 
not cover or authorize access to child support information on States' 
automated systems (which is addressed in 45 CFR Part 307). This section 
addresses Federal and State PLS use for IV-D and non-IV-D purposes.
    65. Comment: Under Sec.  302.35(d)(1), Federal PLS or State PLS 
information may be provided--but one commenter wants clarification as 
to whom this information can be provided--his/her own program or 
another State IV-D program?
    Response: Authorized persons include any State or local agency 
providing IV-D services as well as an authorized person identified in 
Sec.  302.35(c).
    66. Comment: One commenter asks: does the phrase ``for determining 
who has or may have parental rights with respect to a child'' include 
grandparents or other persons who may have ``parental rights''?
    Response: No, section 453(c)(3) of the Act prevents this 
interpretation and means the parent of a child who would have a legal 
obligation to provide child support.
    67. Comment: One commenter asks that the section regarding the 
State Parent Locator Service be amended to incorporate a family 
violence provision as follows ``Subject to the requirements of this 
section, the privacy safeguards required under section 454(26) of the 
Act, and the family violence indicator requirements under Sec.  
307.11(f)(1)(x) of this chapter, the State PLS shall disclose the 
following information to authorized persons for authorized purposes.''
    Response: There is reference to section 454(26) of the Act in Sec.  
302.35(e): Subject to the requirements of this section and the privacy 
safeguards required under section 454(26) of the Act, the State PLS 
shall disclose the following information to authorized persons for 
authorized purposes. We have included reference to the domestic 
violence indicator in Sec. Sec.  302.35(e) and 303.21.

Section 303.3, Location of Noncustodial Parents in IV-D cases

    1. Comment: One commenter recommends changing the title of this 
section to include custodial parents as well as noncustodial parents 
(since the intent of Sec. Sec.  302.35(a)(1) and 303.3 is to include 
custodial parents). Another commenter says that if the heading of this 
section is intended to only apply to noncustodial parents, the 
commenter has no concern with this as long as he or she can use the 
State PLS and other locate sources to locate custodial parents and 
children under Sec.  302.35. If custodial parents and children are 
brought under Sec.  303.3, the commenter asks that the applicability of 
the requirements, as they relate to custodial parents and children, be 
at the State's discretion. Yet another commenter seeks confirmation of 
whether there are specific location requirements for custodial parents. 
The commenter believes that the specific location requirements of 
proposed rule Sec.  303.3 are more appropriately limited to 
noncustodial parents.
    Response: Section 303.3 only applies to locating the noncustodial 
parent. There are many instances in which States will have to locate 
custodial parents and children, e.g., when requested and authorized, or 
to enable disbursement of collections. A State may choose to use the 
same approach as set in Sec.  303.3 to do so but it is not mandated.
    2. Comment: One commenter seeks confirmation that Federal Financial 
Participation (FFP) will be made available to modify computer system 
functionality and provide on-going services to comply with the mandate 
to provide locate services for non-IV-D cases and believes FFP is 
appropriate and necessary.
    Response: FFP is available to modify computer system functionality 
and provide ongoing services to comply with the mandate to provide 
locate services for non-IV-D cases.
    3. Comment: One commenter notes that when the title was changed 
from ``location of absent parents'' to ``location of noncustodial 
parents'' the meaning of the section was changed and as a result, tens 
of thousands of law-abiding parents' information is in State PLS, 
Federal PLS and National Directory of Child Support Orders databases.
    Response: The use of the term noncustodial parent in lieu of absent 
parent was made via regulatory changes in 1999 to reflect the same 
change made in the statute. The change was made to reflect that 
noncustodial parents are not (or should not be) absent from their 
children's lives.
    4. Comment: One commenter asks for clarification regarding what the 
differences are between searching State databases for information 
(which is encouraged) and releasing information from the system (which 
is prohibited). The commenter believes the sentence in Sec.  
303.3(b)(1) ``Use appropriate location sources such as the Federal PLS; 
interstate location networks; local officials and employees 
administering public assistance * * *'' conflicts with proposed Sec.  
302.35(a)(2)(ii) which states that the State PLS would not be able to, 
in response to a non-IV-D request, release information from the 
statewide system.
    Response: There is no conflict because Sec.  303.3 applies only to 
IV-D cases and to locate efforts by the State IV-D agency in those 
cases. The restrictions on release of IV-D systems data does not apply 
to the IV-D agency or its use of program data for IV-D program 
purposes. The release of information in the statewide systems is 
restricted by section 454A of the Act.
    5. Comment: One commenter asks whether the Federal response changes 
(see comment <greek-i>4 above) based on a State's opinion that 
recipients of food stamp benefits must cooperate with the IV-D program.
    Response: If there is a IV-D case involving a food stamp recipient 
who is required to cooperate with the IV-D agency, access to data on 
the statewide automated system is authorized for authorized persons and 
IV-D purposes.
    6. Comment: One commenter urges the agency to disclose to the 
public what tools and data sources are going to be employed to locate 
individuals. It is suggested that these tools and data sources be 
disclosed in the Federal Register, giving individuals time to comment 
on the accuracy and reliability of the tools used.
    Response: States may disclose information regarding State tools and 
data sources. The Systems of Record used by the Federal PLS, the 
National Directory of New Hires and the Federal Case Registry, are 
published in the Federal Register and updated as necessary in 
accordance with Federal law.

Section 303.20, Minimum Organizational and Staffing Requirements

    1. Comment: One commenter is troubled about the lack of actual 
standards regarding proper staffing of the State PLS. In particular, 
the investigative process behind non-IV-D requests will not be 
adequately staffed

[[Page 56434]]

without some guidance, especially considering budget cuts.
    Response: The State determines how the State PLS is operated and 
there are various degrees of automation for access of data. We do not 
think it is appropriate to regulate this because of the different State 
PLS operations that take place among the States.

Section 303.21, Safeguarding and Disclosure of Confidential Information

    1. Comment: One commenter asks why the Office has chosen to issue 
safeguarding rules for IV-D data now if it did not do so before. In 
most States there is an established body of privacy law that governs 
access to personal data maintained by State agencies and limits its use 
and disclosure; and at the time PRWORA was enacted, there were no 
discussions about preempting such bodies of State law by Federal 
statute.
    Response: States requested guidance regarding access to data 
because of the myriad of access requirements and prohibitions enacted 
as part of PRWORA. The requirements of section 454(8) of the Act state 
that States ``shall * * * disclose only information described in 
sections 453 and 463 to the authorized persons specified in such 
sections for the purpose specified in such sections.''
    2. Comment: One commenter raises concern regarding use of the word 
``confidential'' and recommends that ``personal identifying'' 
information be substituted for ``confidential'' as it better captures 
the meaning of the information discussed in these proposed regulations.
    Response: We believe the term ``confidential'' which is used in the 
statute is more consistent and appropriate for implementing the 
regulation.
    3. Comment: One commenter requests that, within the definition of 
``confidential information'', ``employment information'' be changed to 
``employer name and address'' in order to be less broad and more 
consistent with Sec.  302.35.
    Response: Access to data through the Federal PLS and the State PLS 
in Sec.  302.35 is not restricted to employer name and address.
    4. Comment: One commenter requests a specific list of factors by 
which an individual can be identified because the phrase ``not limited 
to'' in Sec.  303.21(a) is vague. As currently written, a State could 
violate the regulation or get differing interpretations by different 
workers. Suggested change: ``Confidential information means any 
information relating to a specified individual or an individual who can 
be identified by reference through any other nonconfidential source by 
reference to one or more factors specific to him or her, including, but 
not limited to, the individuals SSN, residential or mailing addresses, 
employment information, and financial information. Excluded as factors 
specific to him or her are numbers unique to the computerized child 
support enforcement system for individuals, as such a number cannot be 
used as an identifying factor outside of access to the confidential 
computerized child support enforcement system.''
    Response: We have not included this clarification in the 
regulation. Since the State establishes the IV-D case numbers and 
determines when and how they are used, we are unable to conclude that 
such numbers could not be identifying information. We question why 
there would be a need to release IV-D case numbers to an entity outside 
the administration of the IV-D program.
    5. Comment: One commenter questions the intent of Sec.  303.21(a) 
and recommends allowing States to release payment-related information 
in accordance with State law. The commenter believes the last sentence 
``the amount of support ordered and the amount of support collection 
are not considered confidential information for purposes of this 
section'' opens up the IV-D agency to having to provide payment records 
to anyone who makes a request whether or not the requestor is 
associated with the case or intends to use the information for child 
support related purposes. One commenter says the definition of 
``confidential information'' does not include the support-ordered 
amount or the amount of a support collection. Does this mean that if 
the IV-D agency/SDU is approached by an outside entity or ``interested 
third party'' who wants the names and collections of persons, that the 
IV-D agency/SDU is not prohibited from providing such information? 
(Assume the third party is not able to help IV-D program establish and 
enforce.) What if the interested third party has a name and wants to 
know the corresponding charges and payments against the obligation? One 
commenter is concerned with the last sentence in Sec.  303.21(a) that 
appears to make payment histories and arrearage records, which contain 
amounts of support ordered and collection amounts, a part of the public 
record, and would like clarification as to the difference between that 
and ``financial information'' which is confidential. The commenter does 
not understand the meaning of this apparent contradiction.
    Response: We agree that the language in the proposed rule is 
confusing. We deleted the language ``The amount of support ordered and 
the amount of a support collection are not considered confidential 
information for purposes of this section.'' Interested third party may 
not receive payment histories and arrearage records.
    6. Comment: One commenter asks: in order to balance the need for 
accurate payment records and meet IV-D and IRS requirements, is it 
acceptable to show an IRS payment amount in these payment records, but 
not to identify the payment as an IRS receipt?
    Response: We believe it is acceptable for child support purposes 
but this is ultimately governed by Internal Revenue Service Code.
    7. Comment: One commenter believes that if the source of the 
information on the document to be released cannot, on the face of the 
document, be linked to the Federal PLS, Internal Revenue Service (IRS), 
the National Directory of New Hires (NDNH), or other protected source, 
there is no need to restrict release of a copy of a document that is a 
matter of public record.
    Response: We disagree. The statutory provisions restrict disclosure 
of specific information whether or not the source is identified.
    8. Comment: One commenter asks that the following sentence be added 
to the end of Sec.  303.21(a): ``Information required by state law to 
be released to designated persons or entities is not considered 
`confidential' if the information has been independently verified or 
furnished from a source that is not protected by Title IV-D of the 
Social Security Act.''
    Response: The statement as proposed is too broad because it could 
be interpreted to include personal identifying information on the 
statewide automated system.
    9. Comment: One commenter would like confirmation that an 
individual's name would be considered ``confidential information'' as 
it would be information relating to a specific individual who could be 
identified. If the individual's name is confidential and the State is 
not able to release the name, under what circumstances could we release 
the amount of support ordered/collected without the name?
    Response: Confidential information about individuals may not be 
disclosed outside the administration of the IV-D program. The State 
could release aggregate amounts of support collected in the State--
e.g., $X for FY 2006.
    10. Comment: One commenter would like noted that if a IV-D program 
remains unable, under IRS rules, to release the amount of the Federal 
Tax Refund Offset payment to non-IV-D

[[Page 56435]]

entities, the program is severely hampered in our ability to report 
collection obligation compliance information to courts, custodial 
parties, etc.
    Response: We continue to work with the Department of the Treasury 
regarding the release of offset collection information. The Department 
of Treasury has offered to the Congress suggested legislation that 
would amend the Internal Revenue Code regarding this concern and the 
Department of Health and Human Services supports the proposal.
    11. Comment: One commenter is concerned that the requirement that 
``any official with whom a cooperative agreement * * * has been entered 
into * * *'' may not disclose confidential information received from 
the IV-D agency applies to agreements with the Clerks of Courts. 
Documents filed with the court, which have not been sealed, are open to 
inspection by such parties as the parties' creditors, commercial 
information brokers, and newspaper reporters. OCSE needs to recognize 
that this ``open records'' type of disclosure is permissible for Clerks 
of Courts despite this regulation.
    Response: Section 454(26) of the Act requires IV-D agencies to have 
in effect safeguards, applicable to all confidential information 
relating to proceedings or actions to establish paternity or to 
establish, modify or enforce support, that are designed to protect the 
privacy rights of the parties; and 45 CFR 302.12(a)(3) requires that 
those who receive information (such as through cooperative agreements) 
shall abide by those safeguards, because they are carrying out 
functions for the State IV-D agency. However, this regulation does not 
prohibit the disclosure of documents filed with the court, which have 
not been sealed and are open to inspection by such parties as the 
parties' creditors, commercial information brokers, and newspaper 
reporters.
    12. Comment: One commenter notes the general rule prohibiting 
disclosure of confidential information has an exception ``as authorized 
by the Act and implementing regulations * * *.'' Which implementing 
regulations does this refer to?
    Response: Title IV-D regulations at 45 CFR Parts 301-309 are the 
``implementing regulations'' referenced.
    13. Comment: Several commenters would like clarification regarding 
the provision to not disclose confidential information obtained ``in 
connection with the performance of IV-D functions outside the 
administration of the IV-D program.'' What do these ``IV-D functions 
outside of the administration of the IV-D program'' refer to? 
Clarification is needed in order to reflect reality that information 
about the noncustodial parent may be used in any way necessary to 
establish paternity or establish, modify or enforce a child support 
order.
    Response: We have clarified the intent of the language by restating 
it to read ``may not disclose any confidential information, obtained in 
connection with the performance of IV-D functions, outside the 
administration of the IV-D program.''
    14. Comment: One commenter is concerned that the Supplementary 
Information section of this proposed rule adds a limitation not stated 
in the actual rule by saying ``the IV-D program may only disclose the 
minimum amount of confidential information needed for the purpose 
provided.''
    Response: We have deleted the sentence ``In making a disclosure 
under this provision, the IV-D program only disclose the minimum amount 
of confidential information needed for the purpose provided'' as stated 
in the preamble describing Section 2: Safeguarding and Disclosure of 
Confidential Information.
    15. Comment: Two commenters believe Sec.  303.21(d) is very 
restrictive, adds undue complexity to IV-D disclosure policies, and 
places an undue burden on States. For example, unless released within 
the purpose of the IV-D program, the State would need to figure out how 
to withhold IV-D information from courts without compromising the 
court's ability to administer the court case.
    Response: Disclosure of necessary information to the courts needed 
for purposes of the IV-D program is authorized except as limited by 
Section 6103 of the Internal Revenue Code. (Also see Q and A 
<greek-i>10).
    16. Comment: One commenter asks that Sec.  303.21(d) focus on 
specifying when disclosure of information to other government programs 
is permitted and for what purposes.
    Response: Section 303.21(d)(2) and (3) address circumstances under 
which information may be disclosed and for what purposes.
    17. Comment: One commenter is concerned that the section on 
authorized disclosures is made in such a general manner that most 
administrators responsible for safeguarding data privacy would have a 
great deal of difficulty making all the inferences required to actually 
share data.
    Response: We have redesigned Appendix A for clarity. We reorganized 
it so it is laid out by authorized person followed by authorized 
purpose. We have developed a new Appendix B which addresses locate 
services in connection with enforcement or determination of child 
custody and in cases of parental kidnapping of a child.
    18. Comment: One commenter asks about the process of releasing 
confidential information in accordance with Sec.  303.21(d)(1) under 
which information may be released ``to such person or persons 
designated by the individual to whom the information relates or who is 
the custodial parent or legal guardian of a child * * *.'' Should the 
designation be written or verbal? Are there time restrictions to the 
designation? Another commenter is concerned that Sec.  303.21(d)(1) 
would require release of confidential information to anyone the 
individual designates, even though State statute allows only for 
minimal information to be released. The commenter recommends that the 
proposed rule be changed to not require release of the information and 
instead say ``information may be released unless prohibited under State 
statute.''
    Response: As indicated earlier in the preamble, this paragraph was 
removed as a separate authorized disclosure because under paragraph 
(c), disclosure to an individual would be allowed for IV-D purposes and 
would be governed by any safeguarding provision in State law as well.
    19. Comment: One commenter requests that the term ``shall'' be 
replaced with ``may'' because it is appropriate for States to have the 
flexibility to address, at the State level, how they respond to 
requests from an individual to release confidential information. For 
example, they would want to be able to determine, in certain 
situations, that it would be appropriate for them to deal directly with 
the customer, rather than a designee.
    Response: See answer to <greek-i>18.
    20. Comment: One commenter thinks the rule should make clear that a 
custodial parent or legal guardian may obtain information about the 
child in a case and may authorize release of information about the 
child.
    Response: This language has been removed. See answer to 
<greek-i>18.
    21. Comment: One commenter would like to strike the prohibition 
against providing confidential information about an individual to any 
other individual involved in the case.
    Response: The Federal and State IV-D programs are responsible for 
protecting sensitive personal information and broad authority as 
suggested by the commenter is inappropriate.

[[Page 56436]]

    22. Comment: One commenter believes the ability to provide locate 
information to a non-IV-D requestor conflicts with the broad 
prohibition against disclosing ``confidential'' information about one 
individual to another person involved in the case (as proposed in Sec.  
303.21(d)(1)). Several commenters are concerned that Sec.  303.21(d)(2) 
creates a potential danger for overuse of this broad discretion. The 
proposed rule would essentially grant wide-open access to all the 
records and databases available to State child support programs, 
without any realistic ability for States to monitor use of this 
confidential data.
    Response: Proposed Sec.  303.21(d)(1) has been removed from the 
final rule. Section 303.21(d)(2) (now Sec.  303.21(d)(1)) has been 
limited to the specific programs which have been designated by the 
Secretary. These programs also have safeguarding rules.
    23. Comment: There were several commenters who questioned the 
mandatory rather than permissive disclosures in Sec.  303.21(d)(2). One 
commenter wants to know why it is written as a mandate for the State 
IV-D program to disclose confidential information to all entities 
listed and believes the ``permissive disclosure'' allowed prior to 
February 1999 was more appropriate than a mandated disclosure. Another 
commenter would like the phrase ``must'' changed to ``may'' in Sec.  
303.21(d)(2) because the commenter believes a State should be 
authorized to disclose information and that it should not be a 
requirement to disclose the information. Such a change would also 
eliminate the need for the ``to the extent that it does not interfere 
with the IV-D program meeting its own obligation'' language in the same 
sentence. Three commenters point out that Sec.  303.21(d)(2)(ii) would 
require IV-D agencies to report child abuse (or at least give the 
appearance of such), rather than making this reporting discretionary.
    Response: Former Sec.  303.21 Safeguarding information, was removed 
with passage of Public Law 104-93. PRWORA was more permissive. 
Therefore, we have changed the language in Sec.  303.21(d) from 
``must'' to ``may'' and have added ``upon request'' for clarity at the 
beginning of paragraph (1).
    24. Comment: One commenter appreciates the fact this regulation 
does not mandate the manner or the timeframes by which the IV-D program 
must respond to authorized requestors. States must have this 
flexibility.
    Response: We are committed to State flexibility to the extent 
allowable and to our Federal/State/Tribal partnership.
    25. Comment: Is it appropriate that Tribal agencies be authorized 
to have access to data under Sec.  303.21 as discussed in the 
applicable preamble part?
    Response: Tribal IV-D agencies are included in Sec.  303.21(d)(1) 
because they are agencies administering programs under title IV-A and 
IV-D of the Act. However, for clarity we have included specific 
reference to Tribal programs under title IV-A of the Act in Sec.  
303.21(d)(1).
    26. Comment: One commenter seeks confirmation that this section 
permits Federal or State auditors, or other agencies with oversight 
responsibilities, to access confidential information or IV-D case-
specific information.
    Response: Authority for access to information for purposes of the 
administration of the plan or program approved under title IV-D of the 
Act includes audits conducted by Federal or State auditors, or other 
agencies with oversight responsibility.
    27. Comment: Do ``under circumstances which indicate that the 
child's health or welfare is threatened'' include a release to law 
enforcement agencies? Does the language of this proposed regulation 
allow us to release information from our child support files in 
response to an AMBER Alert?
    Response: Based on received comments, we have deleted the language 
in Sec.  303.21(d) as stated in the NPRM that would have allowed the 
State IV-D program to release information to law enforcement agencies 
upon request. However, the information can be released to the IV-B or 
IV-E agency where it is necessary to carry out a State IV-B or IV-E 
function.
    28. Comment: One commenter requests that the phrase ``best interest 
of the child'' be inserted because this language is more appropriate 
than ``under circumstances which indicate that the child's health or 
welfare is threatened.''
    Response: See response to Question <greek-i>28 immediately above.
    29. Comment: One commenter seeks clarification as to whether the 
proposed rule would limit the use of SDNH information outside of the 
IV-D program, subject to the exceptions specified in Sec.  
303.21(d)(2). The commenter does not want restrictions on the use of 
SDNH data. This data is used to collect taxes and to detect and prevent 
fraud in a wide range of programs. We are unaware of any Federal 
authority for limiting use of this State data. In fact, section 
453A(h)(3) of the Act explicitly requires States to share State new 
hire data with ``State agencies operating employment security and 
worker's compensation programs.'' If OCSE intends to impose these 
strict limitations on the use of SDNH data, further discussion of this 
proposal with States is warranted.
    Response: Safeguarding of SDNH data is determined by whether or not 
the database is part of the statewide child support enforcement 
automated system. Any information in the statewide system is protected 
and its access limited as set forth in Sec.  307.13. If the SDNH is 
housed in a separate agency, these restrictions do not apply to non-IV-
D use.
    30. Comment: One commenter believes the intent of this rule, as 
expressed in the preamble, does not fit with requiring independent 
verification of Federal Case Registry and National Directory of New 
Hires information.
    Response: Restricted access to Federal Case Registry (FCR) and 
National Directory of New Hires (NDNH) information is statutory. 
Independent verification is a means to enable a State to disclose this 
information for non-IV-D purposes by changing the source of the data 
through verification.
    31. Comment: One commenter would like an exception made under Sec.  
303.21(d)(3) for title XIX (Medicaid programs). The prohibition on 
disclosing unverified FCR and NDNH information contradicts the mandate 
in 42 U.S.C. 654A(f)(3) to share IV-D system information with Title XIX 
programs.
    Response: Section 454A(f)(3) authorized limited sharing of 
information on the title IV-D automated system to title XIX agencies. 
There is a separate statute at section 453(h) and (i) that explicitly 
restricts access to NDNH and FCR data and does not authorize access to 
such data by title XIX agencies. Section 303.21(d)(3) addresses 
disclosure of information obtained from the IRS or Federal PLS and not 
State systems data.
    32. Comment: Two commenters are confused by the requirement to 
independently verify information the IV-D program receives from NDNH or 
FCR. How would such information be independently verified? Is this rule 
proposing that the State IV-D agency would have to contact the other 
State to verify the FCR information and NDNH information?
    Response: This rule is not requiring or advocating the IV-D agency 
to independently verify information received from the NDNH or the FCR. 
It merely describes the circumstances

[[Page 56437]]

under which such data may be disclosed to persons not specified in 
section 453 of the Act (non-IV-D purposes). For example, assume a State 
IV-D agency submits an address received from the NDNH for postal 
verification. Once the postal verification is complete, that 
information has been independently verified and can be released. The 
source of the address is the postal service, not the NDNH.
    33. Comment: One commenter strongly recommends deleting the 
provision in Sec.  303.21(d)(3) from the proposed regulation 
restricting access to NDNH, FCR, and IRS data.
    Response: Because these restrictions are statutory, they cannot be 
deleted.
    34. Comment: While one commenter recognizes that Federal law 
requires restriction on redisclosure of IRS data and has no objection 
to this aspect, the commenter is unaware of any basis in Federal 
statute for requiring independent verification of information from 
NDNH, FCR, or MSFIDM.
    Response: Federal statute is explicit regarding authorized 
disclosure of NDNH and FCR data. Section 453 of the Act specifies that 
information from the Federal PLS (of which the NDNH and FCR are a part) 
may only be released to authorized persons and for certain purposes. 
This rule is not requiring the IV-D program to independently verify 
information received from the NDNH or the FCR. It merely describes the 
circumstances under which such data may be disclosed to persons not 
specified in section 453 of the Act (non-IV-D purposes).
    35. Comment: One commenter notes that a State currently accepts 
information from the FCR and NDNH as ``independently verified'' and 
takes action based upon that information. This provision (requiring 
that the State in itself independently verify such data) will require 
reprogramming systems and will cause operational burden on States.
    Response: This rule is not requiring the IV-D agency to 
independently verify information received from the NDNH or the FCR. It 
merely describes the circumstances under which such data may be 
disclosed to persons not specified in section 453 of the Act (non-IV-D 
purposes). In fact, we encourage IV-D agencies to take automated action 
based on the NDNH or the FCR.
    36. Comment: One commenter asks for clarification on whether the 
State would be able to share locate and paternity establishment 
information on a State's IV-D system through an automated interface 
with Child Welfare, Foster Care, and Medicaid agencies.
    Response: Yes, under certain circumstances and with certain 
limitations. See Sec. Sec.  303.21 and 307.13
    37. Comment: Three commenters are concerned that the independent 
verification requirement will impede a State's ability to share 
information in a timely, efficient and automated manner. In particular, 
the requirement will impede State's ability to assist State IV-E and 
Medicaid agencies in recovering public health insurance costs and 
locating parents. At a minimum, States will need to segregate NDNH, 
FCR, and MSFIDM data so that they do not transmit this information to 
State IV-E and Medicaid agencies pending independent verification. This 
will require additional automated system development, at a cost to both 
States and the Federal government, and will impede the functioning of 
automated interfaces with other State agencies. Funds and resources 
devoted to programming these requirements could better be used on 
system development that supports the core mission of the child support 
program.
    Response: This rule is not requiring the IV-D agency to 
independently verify information received from the NDNH or the FCR. It 
merely describes the circumstances under which such data may be 
disclosed to persons not specified in section 453 of the Act (for non-
IV-D purposes).
    38. Comment: One commenter believes the regulation fails to provide 
guidance to IV-D agencies regarding the use of Federal tax offset 
amounts and asks: how can a IV-D agency ``independently verify'' the 
amount of a Federal tax refund intercept?
    Response: There is no way to independently verify Federal tax 
refund offset information. We continue to work with the Department of 
the Treasury and the Congress to resolve this issue.
    39. Comment: One commenter notes the regulation requires that 
authorized disclosures, except to IV-A agencies, cannot include 
information obtained from the FCR, unless independently verified. Does 
this mean that information about the noncustodial parent's access to 
military medical benefits obtained from the Defense Data Management 
Center (DMDC) and transmitted to the FCR is confidential?
    Response: States acquire DMDC through a FCR transaction but the 
data is not part of the FCR database. Information about the 
noncustodial parent's access to military medical benefits is thus not 
subject to the ``independent verification'' requirement.
    40. Comment: One commenter would like confirmation that Sec.  
303.21(d)(3) means that information may not be shared with a custodial 
parent seeking information about medical support benefits available to 
a child but that it may be released to the IV-A agency.
    Response: There is no restriction on sharing information from the 
Federal PLS about medical support benefits with custodial parents in 
IV-D cases. Such information is not received from the NDNH or the FCR.
    41. Comment: Four commenters note that the requirement for 
independent verification of NDNH and FCR information prior to 
disclosure could have the following consequences: delay in sending out 
income withholding notices (will not meet 2-day Federal timeframe); 
delay to families and children in getting payments; burden on employers 
who may be required to furnish additional employment verification to 
the SDNH; require automated system programming changes since the 
proposed rule would require segregation of NDNH and FCR and change to 
systems automatic processing of New Hire information; is an 
unacceptable burden on IV-D agencies (unfunded mandate); will impair an 
agency's ability to assist other State entities authorized to receive 
such information; and will complicate the process because depending on 
purposes for which information is to be used, sometimes it must be 
verified and sometimes not.
    Response: This rule is not requiring the IV-D agency to 
independently verify information received from the NDNH or the FCR 
before it is used in the administration of the IV-D program. It merely 
describes the circumstances under which such data may be disclosed to 
persons not specified in section 453 of the Act (for non-IV-D 
purposes). We encourage IV-D agencies to take automated action based on 
the NDNH or the FCR information.
    42. Comment: One commenter believes that to now require independent 
verification of this data seems to be contradictory to previously 
stated policy by the Federal OCSE (i.e., DCL-02-22 that offers the use 
of the NDNH, and MSFIDM as better sources than 1099 information).
    Response: Independent verification is not being required. It is 
merely a condition that must be met if the State wishes to use or 
disclose information for non-IV-D purposes to nonauthorized persons. 
This applies only to non-IV-D purposes. There is no such restriction in 
IV-D cases.
    43. Comment: One commenter said the State does not routinely track 
the ``source'' of most information and thinks the administrative burden 
involved with sharing information under the proposed

[[Page 56438]]

restrictions may be too great for the program to overcome. Another 
commenter indicated that the State's IV-D automated system is required 
to identify the source of address and employment information the IV-D 
agency receives from automated sources. If IV-D staff independently 
verified NDNH information, the staff would have to change the source of 
confidential information and then neither State nor Federal Child 
Support Enforcement agencies would be able to calculate how many 
successful ``hits'' the State is receiving from NDNH or FCR.
    Response: The source of information is a recommended but not 
required data element in State child support systems. However, most 
States do identify the source of information on their systems to meet 
other tracking requirements such as tracking responses from each 
automated location source.
    44. Comment: One commenter requests that if the Office insists on 
including the restriction that prohibits disclosure of NDNH and FCR 
information to title IV, XIX and XXI agencies, the Office insert 
language to clarify ``Except for SPLS disclosure authorized under Sec.  
302.35(c)(5), the IV-D program may not disclose FCR and NDNH data to 
IV-B and IV-E agencies.''
    Response: Because of authority in section 453(c) of the Act, in 
Sec.  307.13(a)(4)(iii) we have indicated that NDNH and FCR information 
is available to IV-B and IV-E agencies for the purposes set forth in 
section 453 of the Act.
    45. Comment: One commenter would like the Office to recognize that 
the mandate to disclose to Title IV-B and IV-E agencies under Sec.  
303.21(d)(2) and the prohibition on that mandated disclosure of NDNH 
and FCR information to IV-B and IV-E agencies without first 
independently verifying under (d)(3) will create confusion because 
under 42 U.S.C. 653(c)(4), IV-B, and IV-E agencies are authorized 
persons for receiving NDNH and FCR information for authorized purposes 
without independent verification for the limited purposes of 
establishing parentage and support.
    Response: Section 453(c) of the Act provides authority for IV-B and 
IV-E agencies to receive NDNH and FCR information without independent 
verification.
    46. Comment: One commenter notes that Sec.  303.21(e) makes it 
clear that a legislative body or governmental committee cannot obtain 
the release of information pertaining to an individual without consent 
of the individual. Please verify that it is up to the State to 
determine the nature of the consent of the individual (e.g., written, 
verbal, or notarized permission or a State could deny permission 
entirely?).
    Response: To the extent that an individual in a IV-D case submits a 
request to a legislator or legislative body concerning his or her IV-D 
case, the IV-D agency may disclose the information necessary for the 
response because the inquiry relates to the administration of the IV-D 
program and is authorized under paragraph (c). As mentioned earlier in 
the preamble, we deleted the language under paragraph (e) Safeguards, 
that ``safeguards shall also prohibit disclosure to any committee or 
legislative body (Federal, State, or local) of any confidential 
information, unless authorized by the individual as specified in 
paragraph (d) of this section.''
    47. Comment: One commenter, to emphasize the requirement that 
States establish the safeguards for victims of family violence required 
by the statute and by the automated system regulation, requested the 
following sentence be added to the end of Sec.  303.21(e): ``These 
safeguards shall also include prohibitions against the release of 
information when the State has reasonable evidence of domestic violence 
or child abuse against a party or a child and that the disclosure of 
such information could be harmful to the party or the child, as 
required by section 454(26) of the Act, and shall include use of the 
family violence indicator required under Sec.  307.11(f)(1)(x) of this 
chapter.''
    Response: We agree with the commenter and have revised Sec.  
303.21(e) accordingly.
    48. Comment: One commenter recommends adding a qualification to 
Sec.  303.21(e) that the information may be released where members of 
the legislature want information with respect to a IV-D case because of 
a constituent request on a particular case.
    Response: Addition of a qualification is not necessary. Under Sec.  
303.21(c) such disclosure is allowable because it is for IV-D purposes.

Appendix A to Sec.  303.21, Safeguarding Confidential Information

    1. Comment: One commenter is concerned that Appendix A does not 
recognize that among the duties of the IV-D program is the duty to 
avoid fraud in publicly-funded programs.
    Response: States are responsible for avoiding fraud in any 
publicly-funded program. However we have no authority to allow access 
to specific data when prohibited or limited by Federal statute.
    2. Comment: One commenter notes that the preamble to the proposed 
rule and the proposed language of Sec.  303.21 impose an independent 
verification requirement for NDNH but not for SDNH data. Yet the chart 
in Appendix A following proposed Sec.  303.21 applies this independent 
verification requirement to disclosure of SDNH data. This appears to be 
an error. If not, this requirement would be a major limitation on State 
use of State new hire data that has no basis in Federal law.
    Response: The chart indicates that independent verification is 
needed if the source of information is NDNH, FCR, or IRS, except that 
NDNH or FCR information may be shared with the IV-A, IV-B, and IV-E 
programs without verification. As mentioned earlier, we have redesigned 
Appendix A and added a new Appendix B and C. There is no requirement to 
independently verify SDNH information.

Section 303.70, Procedures for Submissions to the State Parent Locator 
Service (State PLS) or the Federal Parent Locator Service (FPLS)

    1. Comment: One commenter recommends that the Office specify that 
the word ``individuals'' as used in paragraph (a) includes parents, 
putative fathers, children and caretaker relatives.
    Response: Section 453 of the Act governs whom the Federal PLS may 
attempt to locate and by cross-reference in section 454(8) of the Act, 
whom the State PLS may attempt to locate. Section 453(a)(2)(A) refers 
to attempting to locate any individual ``(i) who is under an obligation 
to pay child support; (ii) against whom such an obligation is sought; 
(iii) to whom such an obligation is owed, or (iv) who has or may have 
parental rights with respect to a child.'' Caretaker relatives do not 
fit any of those conditions. However, we have substituted ``parents, 
putative fathers, and children'' for ``individuals'' in Sec.  
303.20(a).
    2. Comment: One commenter would like the following ``purpose'' to 
be added: The State PLS shall locate individuals for the purpose of 
facilitating informed and timely decisions about child welfare and 
permanency, since locating parents for IV-B/IV-E purposes goes beyond 
just ``establishing parentage'' or ``determining who has or may have 
parental rights to a child'' as the language in the proposed rule 
currently reads.
    Response: The language in Sec.  303.70(e)(1)(i) is the authorized 
purpose as stated in section 453(a)(2) of the Act for the release of 
information to IV-B and IV-E State agencies and is

[[Page 56439]]

consistent with timely decisions regarding child welfare.
    3. Comment: One commenter would like the word ``aid'' changed to 
``assistance as defined at 45 CFR 260.31'' in the proposed rule. This 
way, there will be a clear national policy in this area.
    Response: We have changed the word ``aid'' to ``assistance'' as 
suggested by the commenter but did not cite the regulation because it 
may change.

Section 307.13, Security and Confidentiality for Computerized Support 
Enforcement Systems in Operation After October 1, 1997

    1. Comment: Will more guidance be given to IV-D agencies regarding 
the type of information that will be needed by the State and Tribal 
agencies administrating programs under titles IV, XIX, and XXI of the 
Act?
    Response: We encourage IV-D agencies to work with other agencies to 
make such determinations.
    2. Comment: Could IV-A, XIX, and XXI workers have login IDs and 
passwords to the IV-D system if their access to the IV-D system were 
sufficiently limited to view only the information that those workers 
had the right to access?
    Response: It is possible but would require additional programming 
to ensure that the non-IV-D worker has access to only the authorized 
data including, as applicable, independently-verified data. Non-IV-D 
workers cannot have direct access to the IV-D screens, because usually 
the data on a typical IV-D system screen may contain IRS and financial 
institution information
    3. Comment: One commenter asks for clarification of the phrase 
``outside the IV-D program'' in Sec.  307.13(a)(5). Does this phrase 
mean that the State IV-D agency may not disclose NDNH or FCR 
information without independent verification even if it is a disclosure 
that is necessary to establish, modify or enforce child support? Would 
this phrase prohibit the IV-D agency from using MSFIDM information as 
evidence in a contempt of court proceeding to show the delinquent 
obligor had assets but still failed to pay child support as ordered 
unless the IV-D agency first obtained independent verification?
    Response: Establishing, modifying or enforcing a child support 
order, or a court proceeding where proof is brought regarding the fact 
that a delinquent obligor had assets but still failed to pay child 
support, are all IV-D purposes for a IV-D case. Because they are IV-D 
purposes, the IV-D agency may disclose NDNH or FCR information and 
independent verification does not apply.
    4. Comment: One commenter seeks clarification that Sec.  
307.13(a)(5) [now Sec.  307.13(a)(4)] does not require independent 
verification of FCR and NDNH information. If so, the commenter 
recommends deleting this provision as it is administratively 
burdensome. One commenter would like the Office to eliminate the 
restriction that requires independent verification of NDNH and FCR 
information to title IV, XIX and XXI agencies.
    Response: Independent verification of NDNH and FCR information is 
only necessary for disclosure for non-IV-D purposes. The regulation has 
been rewritten for clarity and Sec.  307.13(a)(4) requires written 
policies that limit disclosure outside the IV-D program, of National 
Directory of New Hire information, Federal Case Registry information, 
and IRS information that is restricted as specified in the Internal 
Revenue Code. Financial institution information cannot be shared 
outside the IV-D program. IV-A, IV-B, and IV-E agencies are authorized 
under various subsections of section 453 of the Act to receive NDNH and 
FCR information from the Federal PLS for certain specified purposes. 
Since these agencies are authorized to have this information, we are 
permitting the IV-D agency to disclose the NDNH or FCR information from 
the IV-D computerized support enforcement system directly to the IV-A, 
IV-B, or IV-E agency if it is being requested for the purpose 
authorized under section 453 of the Act. For IV-B and IV-E programs 
this includes establishing paternity or parental rights with respect to 
a child.
    5. Comment: One commenter seeks clarification as to who is 
responsible to conduct any verification.
    Response: The State IV-D agency must independently verify the data.

                                          Appendix A: Locating Individuals Through the State PLSs Sec.   302.35
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               Persons about whom
     Authorized person/program        Authorized purpose of    information may be       Sources searched          Authorized          Limitations \1\
                                           the request                asked                                 information  returned
--------------------------------------------------------------------------------------------------------------------------------------------------------
Agent/attorney of a State who has    Establish paternity.    Noncustodial Parent...  Federal Parent         Six Elements:          See footnote.
 the duty or authority to collect     Establish, set the     Putative Father.......   Locator Service.      Person's Name........
 child and spousal support under      amount, modify, or     Custodial Parent......  In-state sources in    Person's SSN.........
 the IV-D plan. Section 453(c)(1).    enforce child support  Children. Section        accordance with       Person's address.....
                                      obligations and or to   453(a)(2)(A).           State law.            Employer's name......
                                      facilitate the                                                        Employer's address...
                                      location of any                                                       Employer
                                      individual who is                                                      Identification
                                      under an obligation                                                    Number. Section
                                      to pay child support,                                                  453(a)(2)(A)(iii).
                                      against whom such an                                                  Wages, income, and
                                      obligation is sought,                                                  benefits of
                                      or to whom such an                                                     employment,
                                      obligation is owed.                                                    including health
                                                                                                             care coverage.
                                                                                                             Section 453(a)(2)(B).
                                     Locate a parent or                                                     Type, status,
                                      child involved in a                                                    location, and amount
                                      non-IV-D child                                                         of assets or debts
                                      support case to                                                        owed by or to the
                                      disburse an income                                                     individual. Section
                                      withholding                                                            453(a)(2)(C).
                                      collection. Section
                                      453(a)(2).

[[Page 56440]]

 
Court that has the authority to      To facilitate the       Noncustodial Parent...  Federal Parent         Six Elements as above  No Internal Revenue
 issue an order against an NCP for    location of any        Custodial Parent......   Locator Service.      Wages, income, and      Service (IRS)
 the support and maintenance of       individual who is      Putative Father.......  In-state sources in     benefits of            information provided
 child, or to serve as the            under an obligation    Child.................   accordance with        employment,            for non-IV-D cases
 initiating court in an action to     to pay child support,                           State law.             including health       unless independently
 seek a child support order.          against whom such an                                                   care coverage.         verified.
 Section 453(c)(2).                   obligation is sought,                                                  Section 453(a)(2)(B). No Multistate
                                      or to whom such an                                                    Type, status,           Financial
                                      obligation is owed.                                                    location, and amount   Institution Data
                                                                                                             of assets or debts     Match (MSFIDM) and
                                                                                                             owed by or to the      no State Financial
                                                                                                             individual. Section    Institution Data
                                                                                                             453(a)(2)(C).          Match (FIDM)
                                                                                                                                    information provided
                                                                                                                                    for non-IV-D cases.
                                     Locate a parent or                                                                            No required
                                      child involved in a                                                                           subsequent attempts
                                      non-IV-D child                                                                                to locate unless
                                      support case..                                                                                there is a new
                                                                                                                                    request.
Resident parent, legal guardian,     To facilitate the       Noncustodial Parent...  Federal Parent         Six Elements as above  Child not receiving
 attorney, or agent of a child not    location of any        Putative Father.......   Locator Service.      Wages, income, and      IV-A benefits.
 receiving IV-A benefits (a non-IV-   individual who is                              In-state sources in     benefits of           No IRS Information.
 D request). Section 453(c)(3).\2\    under an obligation                             accordance with        employment,           No MSFIDM and no
                                      to pay child support,                           State law.             including health       State FIDM
                                      against whom such an                                                   care coverage.         information provided
                                      obligation is sought,                                                  Section 453(a)(2)(B).  for non-IV-D cases.
                                      or to whom such an                                                    Type, status,          In a non-IV-D
                                      obligation is owed.                                                    location, and amount   request, attestation
                                                                                                             of assets or debts     is required as
                                                                                                             owed by or to the      specified in Sec.
                                                                                                             individual. Section    302.35(c)(3)(i)-(iii
                                                                                                             453(a)(2)(C).          ).
                                     Locate a parent or
                                      child involved in a
                                      non-IV-D child
                                      support case.
                                                                                                                                   No required
                                                                                                                                    subsequent attempts
                                                                                                                                    to locate unless
                                                                                                                                    there is a new
                                                                                                                                    request.
State agency that is administering   To facilitate the       Noncustodial Parent...  Federal Parent         Six Elements as above  No IRS information
 a Child and Family Services          location of any        Putative Father.......   Locator Service.      Wages, income, and      unless independently
 program (IV-B) or a Foster Care      individual who has or  Custodial Parent......  In-state sources in     benefits of            verified.
 and Adoption IV-E program. Section   may have parental      Child. Section           accordance with        employment,           No MSFIDM information
 453(c)(4).                           rights with respect     453(a)(2)(A).           State law.             including health       and no State FIDM
                                      to the child. Section                                                  care coverage.         information
                                      453(a)(2)(iv).                                                                                provided.
                                                                                                            Type, status,
                                                                                                             location, and amount
                                                                                                             of assets or debts
                                                                                                             owed by or to the
                                                                                                             individual. Section
                                                                                                             453(a)(2)(C) .
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ No information shall be disclosed if the disclosure of such information would contravene the national policy or security interests of the United
  States or the confidentiality of census data. No information shall be disclosed if the State has reasonable evidence of domestic violence or child
  abuse and the disclosure of such information could be harmful to the CP or child. See Section 453(b)(2) for release process to court or agent of the
  court.
\2\ A Tribal IV-D program may request access to the Federal PLS under this authority. See PIQ-07-02/TPIQ-07-02, Q&R 7.


[[Page 56441]]


                           Appendix B: Locating an Individual Sought in a Child Custody/Visitation or Parental Kidnapping Case
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                              About whom                              Authorized
         Type of request          Authorized person/  Authorized purpose  information may be   Sources searched       information       Limitations \1\
                                        program         of the request         requested                               returned
--------------------------------------------------------------------------------------------------------------------------------------------------------
LOCATING AN INDIVIDUAL SOUGHT IN  Any agent or        Determining the     A parent or child.  Federal Parent      Only the three      See footnote.
 A CHILD CUSTODY OR VISITATION     attorney of any     whereabouts of a    Sec.   463(a).      Locator Service.    following          No IRS information
 CASE.                             State who has the   parent or child                        In-state sources     elements:           provided.
                                   authority/duty to   to make or                              in accordance       Person's address   No MSFIDM or State
                                   enforce a child     enforce a custody                       with State law.     Employer's name     FIDM information
                                   custody or          or visitation                                               Employer's          provided.
                                   visitation          determination.                                              address Sec.
                                   determination.      Sec.   463(a)(2).                                           463(c).
                                   Sec.
                                   463(d(2)(A).
                                  A court, or agent                                                                                   No subsequent
                                   of the court,                                                                                       attempts to
                                   having                                                                                              locate unless
                                   jurisdiction to                                                                                     there is a new
                                   make or enforce a                                                                                   request.
                                   child custody or
                                   visitation
                                   determination.
                                   Sec.
                                   463(d)(2)(B).
LOCATING AN INDIVIDUAL SOUGHT IN  Agent or attorney   Determining the     A parent or child.  Federal Parent      Only the three      See footnote.
 A PARENTAL KIDNAPPING CASE.       of the U.S. or a    whereabouts of a    Sec.   463(a).      Locator Service.    following          No IRS information
                                   State who has       parent or child                        In-state sources     elements:           provided
                                   authority/duty to   to enforce any                          in accordance       Person's address   No MSFIDM or State
                                   investigate,        State or Federal                        with State law.     Employer's name     FIDM information
                                   enforce, or         law with respect                                            Employer's          provided.
                                   prosecute the       to the unlawful                                             address Sec.       No subsequent
                                   unlawful taking     taking or                                                   463(c).             attempts to
                                   or restraint of a   restraint of a                                                                  locate unless
                                   child. Sec.         child. Sec.                                                                     there is a new
                                   463(d)(2)(C).       463(a)(1).                                                                      request.
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ No information shall be disclosed if the disclosure of such information would contravene the national policy or security interests of the United
  States or the confidentiality of census data. No information shall be disclosed if the State has reasonable evidence of domestic violence or child
  abuse and the disclosure of such information could be harmful to the CP or child. See Section 453(b)(2) for release process to court or agent of the
  court.


   Appendix C: Authority for State IV-D Agencies to Release Information to Non-IV-D Federal, State, and Tribal
                                                    Programs
----------------------------------------------------------------------------------------------------------------
                                                                              Authorized
            Authority             Authorized purpose  Authorized person/      information         Limitations
                                      of  request           program            returned
----------------------------------------------------------------------------------------------------------------
Sections 453 and 454A(f)(3) of    To perform State    State or Tribal     Confidential        No Internal
 the Act, Section 1102 of the      or Tribal agency    agencies            information found   Revenue Service
 Act; and 45 CFR 307.13.           responsibilities    administering       in automated        information
                                   of designated       title IV, XIX,      system.             unless
                                   programs.           and XXI programs.                       independently
                                                                                               verified.
                                                                                              No MSFIDM or State
                                                                                               FIDM information
                                                                                               provided.
                                                                                              No NDNH and FCR
                                                                                               information for
                                                                                               title XIX and XXI
                                                                                               unless
                                                                                               independently
                                                                                               verified.
                                                                                              For IV-B/IV-E, for
                                                                                               purpose of
                                                                                               section 453(a)(2)
                                                                                               of the Act can
                                                                                               have NDNH and FCR
                                                                                               information
                                                                                               without
                                                                                               independent
                                                                                               verification.
                                                                                              --Any other
                                                                                               purpose requires
                                                                                               independent
                                                                                               verification.
                                                                                              For IV-A NDNH/FRC
                                                                                               information for
                                                                                               purposes of
                                                                                               section 453(j) of
                                                                                               the Act without
                                                                                               independent
                                                                                               verification.
                                                                                              --Need
                                                                                               verification for
                                                                                               other purposes.

[[Page 56442]]

 
Sections 453A(h)(2) and 1137 of   Income and          State agencies      SDNH information:
 the Act--State Directory of New   eligibility         administering       Individual's
 Hires.                            verification        title IV-A,         name, address and
                                   purposes of         Medicaid,           SSN; employer's
                                   designated          unemployment        name, address,
                                   programs.           compensation,       and Federal
                                                       food stamps, or     employer
                                                       other State         identification
                                                       programs under a    number.
                                                       plan approved
                                                       under title I, X,
                                                       XIV, or XVI of
                                                       the Act.
----------------------------------------------------------------------------------------------------------------

IV. Regulatory Review

A. Paperwork Reduction Act

    Section 302.35(c) contains an information collection requirement. 
As required by the Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)), 
the Administration for Children and Families submitted a copy of this 
section to the Office of Management and Budget (OMB) for its review. We 
received only one comment regarding the attestation; therefore in the 
final rule have not revised any language in Sec.  307.13 relating to 
attestation.
    1. Comment: One commenter noted that the Paper Reduction Act 
estimate of 702 hours grossly underestimates the time needed to 
complete the requirements of these proposed regulations. Requiring 
State IV-D agencies to independently verify NDNH and FCR hits requires 
a tremendous amount of paperwork, time, and effort.
    Response: The regulation does not require independent verification. 
It sets forth the conditions for the release of information that the 
State would not be able to release for non-IV-D purposes otherwise. If 
the information has not been independently verified, it may not be 
released for non-IV-D purposes or to persons not specified in section 
453 of the Act.

B. Regulatory Flexibility Analysis

    The Secretary certifies that, under 5 U.S.C. 605(b), as enacted by 
the Regulatory Flexibility Act (Pub. L. 96-354), this rule will not 
result in a significant impact on a substantial number of small 
entities. The primary impact is on State governments. State governments 
are not considered small entities under the Act.

C. Executive Order 12866

    Executive Order 12866 requires that regulations be reviewed to 
ensure that they are consistent with the priorities and principles set 
forth in the Executive Order. The Department has determined that this 
rule is consistent with these priorities and principles. This 
regulation responds to State requests for guidance on data privacy 
issues.
    The primary purpose of this regulation is to clarify requirements 
for safeguarding child support enforcement information by consolidating 
various statutory requirements on disclosure and safeguarding of 
information into a regulatory framework. There are no appreciable costs 
related to this regulation as the relevant statutory requirements have 
been in place for many years and the regulation substantially reflects 
current operating practices.

D. Unfunded Mandates Reform Act of 1995

    Section 202 of the Unfunded Mandates Reform Act of 1995 requires 
that a covered agency prepare a budgetary impact statement before 
promulgating a rule that includes any Federal mandate that may result 
in the expenditure by State, local, and Tribal governments, in the 
aggregate, or by the private sector, of $100 million or more in any one 
year.
    If a covered agency must prepare a budgetary impact statement, 
section 205 further requires that it select the most cost-effective and 
least burdensome alternative that achieves the objectives of the rule 
and is consistent with the statutory requirements. In addition, section 
203 requires a plan for informing and advising any small governments 
that may be significantly or uniquely impacted by the rule.
    We have determined that this rule will not result in the 
expenditure by State, local, and Tribal governments, in the aggregate, 
or by the private sector, of more than $100 million in any one year. 
Accordingly, we have not prepared a budgetary impact statement, 
specifically addressed the regulatory alternatives considered, or 
prepared a plan for informing and advising any significantly or 
uniquely impacted small governments.

E. Congressional Review

    This rule is not a major rule as defined in 5 U.S.C. chapter 8.

F. Assessment of Federal Regulations and Policies on Families

    Section 654 of the Treasury and General Government Appropriations 
Act of 1999 requires Federal agencies to determine whether a policy or 
regulation may affect family well-being. If the agency's determination 
is affirmative, then the agency must prepare an impact assessment 
addressing seven criteria specified in the law. This Office has 
reviewed and determined that these regulations protect the 
confidentiality of information contained in the records of State child 
support enforcement agencies and will not have an impact on family well 
being as defined in the legislation.

G. Executive Order 13132

    Executive Order 13132 prohibits an agency from publishing any rule 
that has federalism implications if the rule either imposes substantial 
direct compliance costs on State and local governments and is not 
required by statute, or the rule preempts State law, unless the agency 
meets the consultation and funding requirements of section 6 of the 
Executive Order. This rule does not have federalism implication as 
defined in the Executive order.

List of Subjects

45 CFR Part 302

    Child support, Grants programs/social programs, Reporting and 
recordkeeping requirements.

45 CFR part 303

    Child support, Grant programs/social programs, Reporting and 
recordkeeping requirements.

45 CFR Part 307

    Child support, Grant programs/social programs, computer technology,

[[Page 56443]]

Reporting and recordkeeping requirements.

(Catalog of Federal Domestic Assistance Programs No. 93.563, Child 
Support Enforcement Program.)

    Dated: April 23, 2008.
Daniel C. Schneider,
Acting Assistant Secretary for Children and Families.
    Approved: June 23, 2008.
Michael O. Leavitt,
Secretary of Health and Human Services.

0
Accordingly, the Department of Health and Human Services amends title 
45 chapter III of the Code of Federal Regulations as follows:

PART 302--STATE PLAN REQUIREMENTS

0
1. The authority citation for part 302 is revised to read as follows:

    Authority: 42 U.S.C. 651 through 658, 660, 663, 664, 666, 667, 
1302, 1396a(a)(25), 1396b(d)(2), 1396b(o), 1396b(p), 1396(k).


0
2. Section 302.35 is revised to read as follows:


Sec.  302.35  State parent locator service.

    The State plan shall provide as follows:
    (a) State PLS. The IV-D agency shall maintain a State PLS to 
provide locate information to authorized persons for authorized 
purposes.
    (1) For IV-D cases and IV-D purposes by the IV-D agency. The State 
PLS shall access the Federal PLS and all relevant sources of 
information and records available in the State, and in other States as 
appropriate, for locating custodial parents, noncustodial parents, and 
children for IV-D purposes.
    (2) For authorized non-IV-D individuals and purposes--
    (i) The State PLS shall access and release information authorized 
to be disclosed under Section 453(a)(2) of the Act from the Federal PLS 
and, in accordance with State law, information from relevant in-state 
sources of information and records, as appropriate, for locating 
custodial parents, noncustodial parents, and children upon request of 
authorized individuals specified in paragraph (c) of this section, for 
authorized purposes specified in paragraph (d) of this section.
    (ii) The State PLS shall not release information from the 
computerized support enforcement system required under part 307 of this 
chapter, IRS information, or financial institution data match 
information, nor shall the State PLS forward a non-IV-D request to 
another State IV-D agency.
    (iii) The State PLS need not make subsequent location attempts if 
locate efforts fail to find the individual sought unless a new request 
is submitted.
    (b) Central State PLS requirement. The IV-D program shall maintain 
a central State PLS to submit requests to the Federal PLS.
    (c) Authorized persons. The State PLS shall accept requests for 
locate information only from the following authorized persons:
    (1) Any State or local agency or official providing child and 
spousal support services under the State plan;
    (2) A court that 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 who is not receiving assistance under title IV-A of the Act only 
if the individual:
    (i) Attests that the request is being made to obtain information 
on, or to facilitate the discovery of, any individual in accordance 
with section 453(a)(2) of the Act for the purpose of establishing 
parentage, establishing, setting the amount of, modifying, or enforcing 
child support obligations;
    (ii) Attests that any information obtained through the Federal or 
State PLS shall be used solely for these purposes and shall be 
otherwise treated as confidential;
    (iii) Provides evidence that the requestor is the parent, legal 
guardian, attorney, or agent of a child not receiving assistance under 
title IV-A, and if an agent of such a child, evidence of a valid 
contract that meets any requirements in State law or written policy for 
acting as an agent and, if a parent, attestation that he or she is the 
resident parent.
    (iv) Pays the fee required for Federal PLS services under section 
453(e)(2) of the Act and Sec.  303.70(f)(2)(i) of this chapter, if the 
State does not pay the fee itself. The State may also charge a fee to 
cover its costs of processing the request, which must be as close to 
actual costs as possible, so as not to discourage requests to use the 
Federal PLS. If the State itself pays the fee for use of the Federal 
PLS or the State PLS in a non-IV-D case, Federal financial 
participation is not available in those expenditures.
    (4) Authorized persons as defined in Sec.  303.15 of this chapter 
in connection with parental kidnapping, child custody or visitation 
cases; or
    (5) A State agency that is administering a program operated under a 
State plan under titles IV-B or IV-E of the Act.
    (d) Authorized purposes for requests and scope of information 
provided. The State PLS shall obtain location information under this 
section only for the purposes specified in paragraphs (d)(1) and (d)(2) 
of this section.
    (1) To locate an individual with respect to a child in a IV-D, non-
IV-D, IV-B, or IV-E case. The State PLS shall locate individuals for 
the purpose of establishing parentage, or establishing, setting the 
amount of, modifying, or enforcing child support obligations or for 
determining who has or may have parental rights with respect to a 
child. For these purposes, only information available through the 
Federal PLS or the State PLS may be provided. This information is 
limited to Social Security Number(s), most recent address, employer 
name and address, employer identification number, wages or other income 
from, and benefits of, employment, including rights to, or enrollment 
in, health care coverage, and asset or debt information.
    (2) To locate an individual sought for the unlawful taking or 
restraint of a child or for child custody or visitation purposes. The 
State PLS shall locate individuals for the purpose of enforcing a State 
law with respect to the unlawful taking or restraint of a child or for 
making or enforcing a child custody or visitation determination as 
defined in section 463(d)(1) of the Act. For this purpose, only the 
information available through the Federal PLS or the State PLS may be 
provided. This information is limited to most recent address and place 
of employment of a parent or child.
    (e) Locate information subject to disclosure. Subject to the 
requirements of this section and the privacy safeguards required under 
section 454(26) of the Act and the family violence indicators under 
section 307.11(f)(1)(x) of this part, the State PLS shall disclose the 
following information to authorized persons for authorized purposes,
    (1) Federal PLS information described in sections 453 and 463 of 
the Act; and
    (2) Information from in-state locate sources.

PART 303--STANDARDS FOR PROGRAM OPERATIONS

0
1. The authority citation for part 303 is revised to read as follows:

    Authority: 42 U.S.C. 651 through 658, 660, 663, 664, 666, 667, 
1302, 1396a(a)(25), 1396b(d)(2), 1396b(o), 1396b(p) and 1396(k).


0
2. Revise Sec.  303.3 to read as follows:

[[Page 56444]]

Sec.  303.3  Location of noncustodial parents in IV-D cases.

    (a) Definition. For purposes of this section, location means 
obtaining information concerning the physical whereabouts of the 
noncustodial parent, or the noncustodial parent's employer(s), other 
sources of income or assets, as appropriate, which is sufficient and 
necessary to take the next appropriate action in a IV-D case.
    (b) For all cases referred to the IV-D program for IV-D services 
because of an assignment of support rights or cases opened upon 
application for IV-D services under Sec.  302.33 of this chapter, the 
IV-D program must attempt to locate all noncustodial parents or their 
sources of income and/or assets when location is needed to take a 
necessary action. Under this standard, the IV-D program must:
    (1) Use appropriate location sources such as the Federal PLS; 
interstate location networks; local officials and employees 
administering public assistance, general assistance, medical 
assistance, food stamps, and social services (whether such individuals 
are employed by the State or a political subdivision); relatives and 
friends of the noncustodial parent, current or past employers; the 
local telephone company; the U.S. Postal Service; financial references; 
unions; fraternal organizations; and police, parole, and probation 
records, if appropriate; and State agencies and departments, as 
authorized by State law, including those departments which maintain 
records of public assistance, wages and employment, unemployment 
insurance, income taxation, driver's licenses, vehicle registration, 
and criminal records and other sources;
    (2) Establish working relationships with all appropriate agencies 
in order to use locate resources effectively;
    (3) Within no more than 75 calendar days of determining that 
location is necessary, access all appropriate location sources and 
ensure that location information is sufficient to take the next 
appropriate action in a case;
    (4) Refer appropriate IV-D cases to the IV-D program of any other 
State, in accordance with the requirements of Sec.  303.7 of this part. 
The IV-D program of such other State shall follow the procedures in 
paragraphs (b)(1) through (b)(3) of this section for such cases, as 
necessary, except that the responding State is not required to access 
the Federal PLS;
    (5) Repeat location attempts in cases in which previous attempts to 
locate noncustodial parents or sources of income and/or assets have 
failed, but adequate identifying and other information exists to meet 
requirements for submittal for location, either quarterly or 
immediately upon receipt of new information which may aid in location, 
whichever occurs sooner. Quarterly attempts may be limited to automated 
sources, but must include accessing State employment security files. 
Repeated attempts because of new information which may aid in location 
must meet the requirements of paragraph (b)(3) of this section; and
    (6) Have in effect safeguards, applicable to all confidential 
information handled by the IV-D program, that are designed to protect 
the privacy rights of the parties and that comply with the requirements 
of sections 454(26) and 454A(d) and (f) of the Act and Sec. Sec.  
303.21 and 307.13.
    (c) The State must establish guidelines defining diligent efforts 
to serve process. These guidelines must include periodically repeating 
service of process attempts in cases in which previous attempts to 
serve process have failed, but adequate identifying and other 
information exists to attempt service of process.

0
4. Section 303.20 is amended by revising paragraph (b)(7) as follows:


Sec.  303.20  Minimum organizational and staffing requirements.

    (b) * * *
    (7) Operation of the State PLS as required under Sec. Sec.  302.35, 
303.3, and 303.70 of this chapter.
* * * * *

0
5. Section 303.21 is added to read as follows:


Sec.  303.21  Safeguarding and disclosure of confidential information.

    (a) Definitions--(1) Confidential information means any information 
relating to a specified individual or an individual who can be 
identified by reference to one or more factors specific to him or her, 
including but not limited to the individual's Social Security number, 
residential and mailing addresses, employment information, and 
financial information.
    (2) Independent verification is the process of acquiring and 
confirming confidential information through the use of a second source. 
The information from the second source, which verifies the information 
about NDNH or FCR data, may be released to those authorized to inspect 
and use the information as authorized under the regulations or the Act.
    (b) Scope. The requirements of this section apply to the IV-D 
agency, any other State or local agency or official to whom the IV-D 
agency delegates any of the functions of the IV-D program, any official 
with whom a cooperative agreement as described in Sec.  302.34 of this 
part has been entered into, and any person or private agency from whom 
the IV-D agency has purchased services pursuant to Sec.  304.22 of this 
chapter.
    (c) General rule. Except as authorized by the Act and implementing 
regulations, an entity described in paragraph (b) of this section may 
not disclose any confidential information, obtained in connection with 
the performance of IV-D functions, outside the administration of the 
IV-D program.
    (d) Authorized disclosures. (1) Upon request, the IV-D agency may, 
to the extent that it does not interfere with the IV-D agency meeting 
its own obligations and subject to such requirements as the Office may 
prescribe, disclose confidential information to State agencies as 
necessary to carry out State agency functions under plans or programs 
under title IV (including tribal programs under title IV) and titles 
XIX, or XXI of the Act, including:
    (i) Any investigation, prosecution or criminal or civil proceeding 
conducted in connection with the administration of any such plan or 
program; and
    (ii) Information on known or suspected instances of physical or 
mental injury, sexual abuse or exploitation, or negligent treatment or 
maltreatment of a child under circumstances which indicate that the 
child's health or welfare is threatened.
    (2) Upon request, the IV-D agency may disclose information in the 
SDNH, pursuant to sections 453A and 1137 of the Act for purposes of 
income and eligibility verification.
    (3) Authorized disclosures under paragraph (d)(1) and (2) of this 
section shall not include confidential information from the National 
Directory of New Hires or the Federal Case Registry, unless authorized 
under Sec.  307.13 of this Chapter or unless it is independently 
verified information. No financial institution data match information 
may be disclosed outside the administration of the IV-D program and no 
IRS information may be disclosed, unless independently verified or 
otherwise authorized in Federal statute. States must have safeguards in 
place as specified in section 454A(d) and (f) of the Act.
    (e) Safeguards. In addition to, and not in lieu of, the safeguards 
described in Sec.  307.13 of this chapter, which governs computerized 
support enforcement systems, the IV-D agency shall establish 
appropriate safeguards to comply with the provisions of this section. 
These safeguards shall also include prohibitions against the release of

[[Page 56445]]

information when the State has reasonable evidence of domestic violence 
or child abuse against a party or a child and that the disclosure of 
such information could be harmful to the party or the child, as 
required by section 454(26) of the Act, and shall include use of the 
family violence indicator required under Sec.  307.11(f)(1)(x) of this 
chapter.
    (f) Penalties for unauthorized disclosure. Any disclosure or use of 
confidential information in violation of the Act and implementing 
regulations shall be subject to any State and Federal statutes that 
impose legal sanctions for such disclosure.

    6. Revise Sec.  303.70 to read as follows:


Sec.  303.70  Procedures for submissions to the State Parent Locator 
Service (State PLS) or the Federal Parent Locator Service (Federal 
PLS).

    (a) The State agency will have procedures for submissions to the 
State PLS or the Federal PLS for the purpose of locating parents, 
putative fathers, or children for the purpose of establishing parentage 
or establishing, setting the amount of, modifying, or enforcing child 
support obligations; or 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 463(d)(1) of the Act.
    (b) Only the central State PLS may make submittals to the Federal 
PLS for the purposes specified in paragraph (a) of this section.
    (c) All submittals shall be made in the manner and form prescribed 
by the Office.
    (d) All submittals shall contain the following information:
    (1) The parent's or putative father's name;
    (2) The parent's or putative father's Social Security Number (SSN). 
If the SSN is unknown, the IV-D program must make reasonable efforts to 
ascertain the individual's SSN before making a submittal to the Federal 
PLS; and
    (3) Any other information prescribed by the Office.
    (e) The director of the IV-D agency or his or her designee shall 
attest annually to the following:
    (1)(i) The IV-D agency will only obtain information to facilitate 
the discovery of any individual in accordance with section 453(a)(2) of 
the Act for the purpose of establishing parentage, establishing, 
setting the amount of, modifying, or enforcing child support 
obligations, or for determining who has or may have parental rights 
with respect to a child, or in accordance with section 453(a)(3) of the 
Act for enforcing a State law with respect to the unlawful taking or 
restraint of a child, or for making or enforcing a child custody or 
visitation determination as defined in section 463(d)(1) of the Act.
    (ii) The IV-D agency will only provide information to the 
authorized persons specified in sections 453(c) or 463(d) of the Act 
and Sec.  302.35 of this chapter.
    (2) In the case of a submittal made on behalf of a resident parent, 
legal guardian, attorney or agent of a child not receiving assistance 
under title IV-A, the IV-D agency must verify that the requesting 
individual has complied with the provisions of Sec.  302.35 of this 
chapter.
    (3) The IV-D agency will treat any information obtained through the 
Federal PLS and SPLS as confidential and shall safeguard the 
information under the requirements of sections 453(b), 453(l), 454(8), 
454(26), and 463(c) of the Act, Sec.  303.21 of this part and 
instructions issued by the Office.
    (f)(1) The IV-D agency shall reimburse the Secretary for the fees 
required under:
    (i) Section 453(e)(2) of the Act whenever Federal PLS services are 
furnished to a resident parent, legal guardian, attorney or agent of a 
child not receiving assistance under title IV-A of the Act;
    (ii) Section 454(17) of the Act whenever Federal PLS services are 
furnished in parental kidnapping and child custody or visitation 
determination;
    (iii) Section 453(k)(3) of the Act whenever a State agency receives 
information from the Federal PLS pursuant to section 453 of the Act.
    (2)(i) The IV-D agency may charge an individual requesting 
information, or pay without charging the individual, the fees required 
under sections 453(e)(2), 453(k)(3) or 454(17) of the Act except that 
the IV-D agency shall charge an individual specified in section 
453(c)(3) of the Act the fee required under section 453(e)(2) of the 
Act
    (ii) The IV-D agency may recover the fee required under section 
453(e)(2) of the Act from the noncustodial parent who owes a support 
obligation to a family on whose behalf the IV-D agency is providing 
services and repay it to the individual requesting information or 
itself.
    (iii) State funds used to pay the fee under section 453(e)(2) of 
the Act are not program expenditures under the State plan but are 
program income under Sec.  304.50 of this chapter.
    (3) The fees referenced in paragraph (f)(1) of this section shall 
be in an amount determined to be reasonable payment for the information 
exchange.
    (4)(i) If a State fails to transmit the fees charged by the Office 
under this section, the services provided by the Federal PLS in cases 
subject to the fees may be suspended until payment is received.
    (ii) Fees shall be transmitted in the amount and manner prescribed 
by the Office in instructions.

PART 307--COMPUTERIZED SUPPORT ENFORCEMENT SYSTEMS IN OPERATION 
AFTER OCTOBER 1, 1997

0
1. The authority citation for part 307 continues to read as follows:

    Authority: 42 U.S.C. 652 through 658, 664, 666 through 669A, and 
1302.


0
2. Amend Sec.  307.13 by revising paragraph (a) to read as follows:


Sec.  307.13  Security and confidentiality for computerized support 
enforcement systems in operation after October 1, 1997.

* * * * *
    (a) Information integrity and security. Have safeguards protecting 
the integrity, accuracy, completeness of, access to, and use of data in 
the computerized support enforcement system. These safeguards shall 
include written policies concerning access to data by IV-D agency 
personnel, and the sharing of data with other persons to:
    (1) Permit access to and use of data to the extent necessary to 
carry out the State IV-D program under this chapter;
    (2) Specify the data which may be used for particular IV-D program 
purposes, and the personnel permitted access to such data;
    (3) Permit exchanging information with State and Tribal agencies 
administering programs under titles IV, XIX, and XXI of the Act, to the 
extent necessary to carry out those State and Tribal agency 
responsibilities under such programs in accordance with section 
454A(f)(3) of the Act, and to the extent that it does not interfere 
with IV-D program meeting its own obligations.
    (4) Prohibit the disclosure of NDNH, FCR, financial institution, 
and IRS information outside the IV-D program except that:
    (i) IRS information is restricted as specified in the Internal 
Revenue Code;
    (ii) Independently verified information other than financial 
institution information may be released to authorized persons;
    (iii) NDNH and FCR information may be disclosed without independent 
verification to IV-B and IV-E agencies

[[Page 56446]]

for the purposes of establishing parentage or establishing parental 
rights with respect to a child; and
    (iv) NDNH and FCR information may be disclosed without independent 
verification to IV-A agencies for the purpose of assisting States to 
carry out their responsibilities of administering the Title IV-A 
programs.
* * * * *
[FR Doc. E8-22054 Filed 9-25-08; 8:45 am]
BILLING CODE 4184-01-P


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