‘‘(H) INCREASE
MONTHLY
PAYMENTS.—
For the purpose of securing overdue support, to
increase the amount of monthly support pay-
ments to include amounts for arrearages, sub-
ject to such conditions or limitations as the
State may provide.
Such procedures shall be subject to due process safe-
guards, including (as appropriate) requirements for
notice, opportunity to contest the action, and oppor-
tunity for an appeal on the record to an independent
administrative or judicial tribunal.
‘‘(2) SUBSTANTIVE AND PROCEDURAL RULES.—
The expedited procedures required under subsection
(a)(2) shall include the following rules and author-
ity, applicable with respect to all proceedings to es-
tablish paternity or to establish, modify, or enforce
support orders:
‘‘(A) LOCATOR
INFORMATION; PRESUMP-
TIONS
CONCERNING
NOTICE.—Procedures
under which—
‘‘(i) each party to any paternity or
child support proceeding is required (sub-
ject to privacy safeguards) to file with the
tribunal and the State case registry upon
entry of an order, and to update as appro-
priate, information on location and identity
of the party, including social security num-
ber, residential and mailing addresses, tele-
phone number, driver’s license number,
and name, address, and telephone number
of employer; and
‘‘(ii) in any subsequent child support
enforcement action between the parties,
upon sufficient showing that diligent effort
has been made to ascertain the location of
such a party, the tribunal may deem State
due process requirements for notice and
service of process to be met with respect to
the party, upon delivery of written notice
to the most recent residential or employer
address filed with the tribunal pursuant to
clause (i).
‘‘(B) STATEWIDE
JURISDICTION.—Proce-
dures under which—
‘‘(i) the State agency and any admin-
istrative or judicial tribunal with authority
to hear child support and paternity cases
exerts statewide jurisdiction over the par-
ties; and
‘‘(ii) in a State in which orders are is-
sued by courts or administrative tribunals,
a case may be transferred between local ju-
risdictions in the State without need for
any additional filing by the petitioner, or
service of process upon the respondent, to
retain jurisdiction over the parties.
‘‘(3) COORDINATION
WITH
ERISA.—Notwith-
standing subsection (d) of section 514 of the Em-
ployee Retirement Income Security Act of 1974 (re-
lating to effect on other laws), nothing in this sub-
section shall be construed to alter, amend, modify,
invalidate, impair, or supersede subsections (a), (b),
and (c) of such section 514 as it applies with respect
to any procedure referred to in paragraph (1) and
any expedited procedure referred to in paragraph
(2), except to the extent that such procedure would
be consistent with the requirements of section
206(d)(3) of such Act (relating to qualified domestic
relations orders) or the requirements of section
609(a) of such Act (relating to qualified medical
child support orders) if the reference in such section
206(d)(3) to a domestic relations order and the ref-
erence in such section 609(a) to a medical child sup-
port order were a reference to a support order re-
ferred to in paragraphs (1) and (2) relating to the
same matters, respectively.’’.
(b) AUTOMATION OF STATE AGENCY FUNCTIONS.—
Section 454A, as added by section 504(a)(2) and as
amended by sections 201 and 202(c) of this Act, is amend-
ed by adding at the end the following new subsection:
‘‘(h) EXPEDITED ADMINISTRATIVE PROCEDURES.—
The automated system required by this section shall be
used, to the maximum extent feasible, to implement the
expedited administrative procedures required by section
466(c).’’.
TITLE IV—PATERNITY
ESTABLISHMENT
SEC. 401. STATE LAWS CONCERNING PATERNITY ESTAB-
LISHMENT.
(a) STATE LAWS REQUIRED.—Section 466(a)(5) (42
U.S.C. 666(a)(5)) is amended to read as follows:
‘‘(5) PROCEDURES CONCERNING PATERNITY ES-
TABLISHMENT.—
‘‘(A) ESTABLISHMENT
PROCESS
AVAIL-
ABLE FROM BIRTH UNTIL AGE 18.—
‘‘(i) Procedures which permit the es-
tablishment of the paternity of a child at
any time before the child attains 18 years
of age.
‘‘(ii) As of August 16, 1984, clause (i)
shall also apply to a child for whom pater-
nity has not been established or for whom
a paternity action was brought but dis-
missed because a statute of limitations of
less than 18 years was then in effect in the
State.
‘‘(B) PROCEDURES CONCERNING GENETIC
TESTING.—
‘‘(i) GENETIC TESTING REQUIRED IN
CERTAIN CONTESTED CASES.—Procedures
under which the State is required, in a
contested paternity case (unless otherwise
barred by State law) to require the child
and all other parties (other than individ-
uals found under section 454(29) to have
good cause and other exceptions for refus-
ing to cooperate) to submit to genetic tests
upon the request of any such party, if the
request is supported by a sworn statement
by the party—
‘‘(I) alleging paternity, and set-
ting forth facts establishing a reason-
able possibility of the requisite sexual
contact between the parties; or
‘‘(II) denying paternity, and set-
ting forth facts establishing a reason-
able possibility of the nonexistence of
sexual contact between the parties.
‘‘(ii) OTHER REQUIREMENTS.—Proce-
dures which require the State agency, in
any case in which the agency orders ge-
netic testing—
‘‘(I) to pay costs of such tests,
subject to recoupment (if the State so
elects) from the alleged father if pa-
ternity is established; and
‘‘(II) to obtain additional testing
in any case if an original test result is
contested, upon request and advance
payment by the contestant.
‘‘(C) VOLUNTARY
PATERNITY
ACKNOWL-
EDGMENT.—
‘‘(i) SIMPLE CIVIL PROCESS.—Proce-
dures for a simple civil process for volun-
tarily acknowledging paternity under which
the State must provide that, before a
mother and a putative father can sign an
acknowledgment of paternity, the mother
and the putative father must be given no-
tice, orally and in writing, of the alter-
natives to, the legal consequences of, and
the rights (including, if 1 parent is a
minor, any rights afforded due to minority
status) and responsibilities that arise from,
signing the acknowledgment.
‘‘(ii) HOSPITAL-BASED
PROGRAM.—
Such procedures must include a hospital-
based program for the voluntary acknowl-
edgment of paternity focusing on the pe-
riod immediately before or after the birth
of a child, unless good cause and other ex-
ceptions exist which—
‘‘(I) shall be defined, taking into
account the best interests of the child,
and
‘‘(II) shall be applied in each
case,
by, at the option of the State, the State
agency administering the State program
under part A, this part, or title XIX.
‘‘(iii) 
PATERNITY
ESTABLISHMENT
SERVICES.—
‘‘(I) 
STATE-OFFERED
SERV-
ICES.—Such procedures must require
the State agency responsible for main-
taining birth records to offer vol-
untary paternity establishment serv-
ices.
‘‘(II) REGULATIONS.—
‘‘(aa) SERVICES
OFFERED
BY
HOSPITALS
AND
BIRTH
RECORD
AGENCIES.—The Sec-
retary shall prescribe regulations
governing voluntary paternity es-
tablishment services offered by
hospitals and birth record agen-
cies.
‘‘(bb) SERVICES
OFFERED
BY OTHER ENTITIES.—The Sec-
retary shall prescribe regulations
specifying the types of other enti-
ties that may offer voluntary pa-
ternity 
establishment 
services,
and governing the provision of
such services, which shall include
a requirement that such an entity
must use the same notice provi-
sions used by, use the same ma-
terials used by, provide the per-
sonnel providing such services
with the same training provided
by, and evaluate the provision of
such services in the same manner
as the provision of such services
is evaluated by, voluntary pater-
nity establishment programs of
hospitals and birth record agen-
cies.
‘‘(iv) USE OF PATERNITY ACKNOWL-
EDGMENT
AFFIDAVIT.—Such procedures
must require the State to develop and use
an affidavit for the voluntary acknowledg-
ment of paternity which includes the mini-
mum requirements of the affidavit speci-
fied by the Secretary under section
452(a)(7) for the voluntary acknowledg-
ment of paternity, and to give full faith
and credit to such an affidavit signed in
any other State according to its proce-
dures.
‘‘(D) STATUS OF SIGNED PATERNITY AC-
KNOWLEDGMENT.—
‘‘(i) INCLUSION IN BIRTH RECORDS.—
Procedures under which the name of the
father shall be included on the record of
birth of the child of unmarried parents
only if—
‘‘(I) the father and mother have
signed a voluntary acknowledgment of
paternity; or
‘‘(II) a court or an administrative
agency of competent jurisdiction has
issued an adjudication of paternity.
Nothing in this clause shall preclude a
State agency from obtaining an admission
of paternity from the father for submission
in a judicial or administrative proceeding,
or prohibit the issuance of an order in a
judicial or administrative proceeding which
bases a legal finding of paternity on an ad-
mission of paternity by the father and any
other additional showing required by State
law.
‘‘(ii) LEGAL
FINDING
OF
PATER-
NITY.—Procedures under which a signed
voluntary acknowledgment of paternity is
considered a legal finding of paternity,
subject to the right of any signatory to re-
scind the acknowledgment within the ear-
lier of—
‘‘(I) 60 days; or
‘‘(II) the date of an administra-
tive or judicial proceeding relating to
the child (including a proceeding to
establish a support order) in which
the signatory is a party.
‘‘(iii) CONTEST.—Procedures under
which, after the 60-day period referred to
in clause (ii), a signed voluntary acknowl-
edgment of paternity may be challenged in
court only on the basis of fraud, duress, or
material mistake of fact, with the burden
of proof upon the challenger, and under
which the legal responsibilities (including
child support obligations) of any signatory
arising from the acknowledgment may not
be suspended during the challenge, except
for good cause shown.
‘‘(E) BAR ON ACKNOWLEDGMENT RATIFI-
CATION
PROCEEDINGS.—Procedures 
under
which judicial or administrative proceedings are
not required or permitted to ratify an unchal-
lenged acknowledgment of paternity.
‘‘(F) ADMISSIBILITY OF GENETIC TESTING
RESULTS.—Procedures—
‘‘(i) requiring the admission into evi-
dence, for purposes of establishing pater-
nity, of the results of any genetic test that
is—
‘‘(I) of a type generally acknowl-
edged as reliable by accreditation bod-
ies designated by the Secretary; and
‘‘(II) performed by a laboratory
approved by such an accreditation
body;
‘‘(ii) requiring an objection to genetic
testing results to be made in writing not
later than a specified number of days be-
fore any hearing at which the results may
be introduced into evidence (or, at State
option, not later than a specified number
of days after receipt of the results); and
‘‘(iii) making the test results admissi-
ble as evidence of paternity without the
need for foundation testimony or other
proof of authenticity or accuracy, unless
objection is made.
‘‘(G) PRESUMPTION
OF
PATERNITY
IN
CERTAIN CASES.—Procedures which create a re-
buttable or, at the option of the State, conclu-
sive presumption of paternity upon genetic test-
ing results indicating a threshold probability
that the alleged father is the father of the child.
‘‘(H) DEFAULT ORDERS.—Procedures re-
quiring a default order to be entered in a pater-
nity case upon a showing of service of process
on the defendant and any additional showing
required by State law.
‘‘(I) NO RIGHT TO JURY TRIAL.—Proce-
dures providing that the parties to an action to
establish paternity are not entitled to a trial by
jury.
‘‘(J) TEMPORARY SUPPORT ORDER BASED
ON
PROBABLE
PATERNITY
IN
CONTESTED
CASES.—Procedures which require that a tem-
porary order be issued, upon motion by a party,
requiring the provision of child support pending
an administrative or judicial determination of
parentage, if there is clear and convincing evi-
dence of paternity (on the basis of genetic tests
or other evidence).
‘‘(K) PROOF OF CERTAIN SUPPORT AND
PATERNITY
ESTABLISHMENT
COSTS.—Proce-
dures under which bills for pregnancy, child-
birth, and genetic testing are admissible as evi-
dence without requiring third-party foundation
testimony, and shall constitute prima facie evi-
dence of amounts incurred for such services or
for testing on behalf of the child.
‘‘(L) STANDING OF PUTATIVE FATHERS.—
Procedures ensuring that the putative father
has a reasonable opportunity to initiate a pater-
nity action.
‘‘(M) FILING OF ACKNOWLEDGMENTS AND
ADJUDICATIONS IN STATE REGISTRY OF BIRTH
RECORDS.—Procedures under which voluntary
acknowledgments and adjudications of paternity
by judicial or administrative processes are filed
with the State registry of birth records for com-
parison with information in the State case reg-
istry.’’.
(b) NATIONAL PATERNITY ACKNOWLEDGMENT AFFI-
DAVIT.—Section 452(a)(7) (42 U.S.C. 652(a)(7)) is
amended by inserting ‘‘, and specify the minimum require-
ments of an affidavit to be used for the voluntary acknowl-
edgment of paternity which shall include the social secu-
rity number of each parent and, after consultation with
the States, other common elements as determined by such
designee’’ before the semicolon.
(c) CONFORMING AMENDMENT.—Section 468 (42
U.S.C. 668) is amended by striking ‘‘a simple civil process
for voluntarily acknowledging paternity and’’.
SEC. 402. OUTREACH FOR VOLUNTARY PATERNITY ESTAB-
LISHMENT.
Section 454(23) (42 U.S.C. 654(23)) is amended by
inserting ‘‘and will publicize the availability and encourage
the use of procedures for voluntary establishment of pater-
nity and child support by means the State deems appro-
priate’’ before the semicolon.
SEC. 403. COOPERATION BY APPLICANTS FOR AND RECIPI-
ENTS OF PART A ASSISTANCE.
Section 454 (42 U.S.C. 654), as amended by sections
101(b), 103(a), 202(a), and 203(a) of this Act, is amend-
ed—
(1) by striking ‘‘and’’ at the end of paragraph
(27);
(2) by striking the period at the end of para-
graph (28) and inserting ‘‘; and’’; and
(3) by inserting after paragraph (28) the fol-
lowing new paragraph:
‘‘(29) provide that the State agency responsible
for administering the State plan—
‘‘(A) shall make the determination (and re-
determination at appropriate intervals) as to
whether an individual who has applied for or is
receiving assistance under the State program
funded under part A or the State program
under title XIX is cooperating in good faith
with the State in establishing the paternity of,
or in establishing, modifying, or enforcing a
support order for, any child of the individual by
providing the State agency with the name of,
and such other information as the State agency
may require with respect to, the noncustodial
parent of the child, subject to good cause and
other exceptions which—
‘‘(i) shall be defined, taking into ac-
count the best interests of the child, and
‘‘(ii) shall be applied in each case,
by, at the option of the State, the State
agency administering the State program
under part A, this part, or title XIX;
‘‘(B) shall require the individual to supply
additional necessary information and appear at
interviews, hearings, and legal proceedings;
‘‘(C) shall require the individual and the
child to submit to genetic tests pursuant to ju-
dicial or administrative order;
‘‘(D) may request that the individual sign
a voluntary acknowledgment of paternity, after
notice of the rights and consequences of such
an acknowledgment, but may not require the in-
dividual to sign an acknowledgment or other-
wise relinquish the right to genetic tests as a
condition of cooperation and eligibility for as-
sistance under the State program funded under
part A or the State program under title XIX;
and
‘‘(E) shall promptly notify the individual
and the State agency administering the State
program funded under part A and the State
agency administering the State program under
title XIX of each such determination, and if
noncooperation is determined, the basis there-
fore.’’.
TITLE V—PROGRAM
ADMINISTRATION AND FUNDING
SEC. 501. PERFORMANCE-BASED INCENTIVES AND PEN-
ALTIES.
(a) DEVELOPMENT
OF NEW SYSTEM.—The Sec-
retary of Health and Human Services, in consultation with
State directors of programs under part D of title IV of
the Social Security Act, shall develop a new incentive sys-
tem to replace, in a revenue neutral manner, the system
under section 458 of such Act. The new system shall pro-
vide additional payments to any State based on such
State’s performance under such a program. Not later than
November 1, 1996, the Secretary shall report on the new
system to the Committee on Ways and Means of the
House of Representatives and the Committee on Finance
of the Senate.
(b) CONFORMING AMENDMENTS TO PRESENT SYS-
TEM.—Section 458 (42 U.S.C. 658) is amended—
(1) in subsection (a), by striking ‘‘aid to fami-
lies with dependent children under a State plan ap-
proved under part A of this title’’ and inserting ‘‘as-
sistance under a program funded under part A’’;
(2) in subsection (b)(1)(A), by striking ‘‘section
402(a)(26)’’ and inserting ‘‘section 408(a)(4)’’;
(3) in subsections (b) and (c)—
(A) by striking ‘‘AFDC collections’’ each
place it appears and inserting ‘‘title IV–A col-
lections’’, and
(B) by striking ‘‘non-AFDC collections’’
each place it appears and inserting ‘‘non-title
IV–A collections’’; and
(4) in subsection (c), by striking ‘‘combined
AFDC/non-AFDC administrative costs’’ both places
it appears and inserting ‘‘combined title IV–A/non-
title IV–A administrative costs’’.
(c) CALCULATION OF PATERNITY ESTABLISHMENT
PERCENTAGE.—
(1) 
Section 
452(g)(1)(A) 
(42 
U.S.C.
652(g)(1)(A)) is amended by striking ‘‘75’’ and in-
serting ‘‘90’’.
(2) Section 452(g)(1) (42 U.S.C. 652(g)(1)) is
amended—
(A) by redesignating subparagraphs (B)
through (E) as subparagraphs (C) through (F),
respectively, and by inserting after subpara-
graph (A) the following new subparagraph:
‘‘(B) for a State with a paternity establish-
ment percentage of not less than 75 percent but
less than 90 percent for such fiscal year, the
paternity establishment percentage of the State
for the immediately preceding fiscal year plus 2
percentage points;’’; and
(B) by adding at the end the following new
flush sentence:
‘‘In determining compliance under this section, a State
may use as its paternity establishment percentage either
the State’s IV–D paternity establishment percentage (as
defined in paragraph (2)(A)) or the State’s statewide pa-
ternity establishment percentage (as defined in paragraph
(2)(B)).’’.
(3) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is
amended—
(A) in subparagraph (A)—
(i) in the matter preceding clause
(i)—
(I) by striking ‘‘paternity estab-
lishment percentage’’ and inserting
‘‘IV–D paternity establishment per-
centage’’; and
(II) by striking ‘‘(or all States, as
the case may be)’’;
(ii) by striking ‘‘and’’ at the end
thereof;
(B) by redesignating subparagraph (B) as
subparagraph (C) and by inserting after sub-
paragraph (A) the following new subparagraph:
‘‘(B) the term ‘statewide paternity establish-
ment percentage’ means, with respect to a State for
a fiscal year, the ratio (expressed as a percentage)
that the total number of minor children—
‘‘(i) who have been born out of wedlock,
and
‘‘(ii) the paternity of whom has been estab-
lished or acknowledged during the fiscal year,
bears to the total number of children born out of
wedlock during the preceding fiscal year; and’’; and
(iii) in the matter following subpara-
graph (C) (as so redesignated), by striking
‘‘to have good cause for refusing to cooper-
ate’’ and inserting ‘‘to qualify for a good
cause or other exception to cooperation’’.
(4) Section 452(g)(3) (42 U.S.C. 652(g)(3)) is
amended—
(A) by striking subparagraph (A) and re-
designating subparagraphs (B) and (C) as sub-
paragraphs (A) and (B), respectively; and
(B) in subparagraph (A) (as so redesig-
nated), by striking ‘‘the percentage of children
born out-of-wedlock in a State’’ and inserting
‘‘the percentage of children in a State who are
born out of wedlock or for whom support has
not been established’’.
(d) EFFECTIVE DATES.—
(1) INCENTIVE ADJUSTMENTS.—
(A) IN GENERAL.—The system developed under
subsection (a) and the amendments made by sub-
section (b) shall become effective on October 1,
1997, except to the extent provided in subparagraph
(B).
(B) APPLICATION
OF
SECTION
458.—Section
458 of the Social Security Act, as in effect on the
day before the date of the enactment of this section,
shall be effective for purposes of incentive payments
to States for fiscal years before fiscal year 1999.
(2) PENALTY REDUCTIONS.—The amendments
made by subsection (c) shall become effective with
respect to calendar quarters beginning on or after
the date of the enactment of this Act.
SEC. 502. FEDERAL AND STATE REVIEWS AND AUDITS.
(a) STATE AGENCY ACTIVITIES.—Section 454 (42
U.S.C. 654) is amended—
(1) in paragraph (14), by striking ‘‘(14)’’ and
inserting ‘‘(14)(A)’’;
(2) by redesignating paragraph (15) as sub-
paragraph (B) of paragraph (14); and
(3) by inserting after paragraph (14) the fol-
lowing new paragraph:
‘‘(15) provide for—
‘‘(A) a process for annual reviews of and
reports to the Secretary on the State program
operated under the State plan approved under
this part, including such information as may be
necessary to measure State compliance with
Federal requirements for expedited procedures,
using such standards and procedures as are re-
quired by the Secretary, under which the State
agency will determine the extent to which the
program is operated in compliance with this
part; and
‘‘(B) a process of extracting from the auto-
mated data processing system required by para-
graph (16) and transmitting to the Secretary
data and calculations concerning the levels of
accomplishment (and rates of improvement)
with respect to applicable performance indica-
tors (including paternity establishment percent-
ages) to the extent necessary for purposes of
sections 452(g) and 458.’’.
100
(b) FEDERAL ACTIVITIES.—Section 452(a)(4) (42
U.S.C. 652(a)(4)) is amended to read as follows:
‘‘(4)(A) review data and calculations transmit-
ted 
by 
State 
agencies 
pursuant 
to 
section
454(15)(B) on State program accomplishments with
respect to performance indicators for purposes of
subsection (g) of this section and section 458;
‘‘(B) review annual reports submitted pursuant
to section 454(15)(A) and, as appropriate, provide
to the State comments, recommendations for addi-
tional or alternative corrective actions, and technical
assistance; and
‘‘(C) conduct audits, in accordance with the
Government auditing standards of the Comptroller
General of the United States—
‘‘(i) at least once every 3 years (or more
frequently, in the case of a State which fails to
meet the requirements of this part concerning
performance standards and reliability of pro-
gram data) to assess the completeness, reliabil-
ity, and security of the data and the accuracy
of the reporting systems used in calculating
performance indicators under subsection (g) of
this section and section 458;
101
‘‘(ii) of the adequacy of financial manage-
ment of the State program operated under the
State plan approved under this part, including
assessments of—
‘‘(I) whether Federal and other funds
made available to carry out the State pro-
gram are being appropriately expended,
and are properly and fully accounted for;
and
‘‘(II) whether collections and disburse-
ments of support payments are carried out
correctly and are fully accounted for; and
‘‘(iii) for such other purposes as the Sec-
retary may find necessary;’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall be effective with respect to calendar
quarters beginning 12 months or more after the date of
the enactment of this Act.
SEC. 503. REQUIRED REPORTING PROCEDURES.
(a) ESTABLISHMENT.—Section 452(a)(5) (42 U.S.C.
652(a)(5)) is amended by inserting ‘‘, and establish proce-
dures to be followed by States for collecting and reporting
information required to be provided under this part, and
establish uniform definitions (including those necessary to
enable the measurement of State compliance with the re-
102
quirements of this part relating to expedited processes) to
be applied in following such procedures’’ before the semi-
colon.
(b) STATE PLAN REQUIREMENT.—Section 454 (42
U.S.C. 654), as amended by sections 101(b), 103(a),
202(a), 203(a), and 403 of this Act, is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(28);
(2) by striking the period at the end of para-
graph (29) and inserting ‘‘; and’’; and
(3) by adding after paragraph (29) the follow-
ing new paragraph:
‘‘(30) provide that the State shall use the defi-
nitions established under section 452(a)(5) in col-
lecting and reporting information as required under
this part.’’.
SEC. 504. AUTOMATED DATA PROCESSING REQUIREMENTS.
(a) REVISED REQUIREMENTS.—
(1) IN GENERAL.—Section 454(16) (42 U.S.C.
654(16)) is amended—
(A) by striking ‘‘, at the option of the
State,’’;
(B) by inserting ‘‘and operation by the
State agency’’ after ‘‘for the establishment’’;
103
(C) by inserting ‘‘meeting the requirements
of section 454A’’ after ‘‘information retrieval
system’’;
(D) by striking ‘‘in the State and localities
thereof, so as (A)’’ and inserting ‘‘so as’’;
(E) by striking ‘‘(i)’’; and
(F) by striking ‘‘(including’’ and all that
follows and inserting a semicolon.
(2) AUTOMATED DATA PROCESSING.—Part D of
title IV (42 U.S.C. 651–669) is amended by insert-
ing after section 454 the following new section:
‘‘SEC. 454A. AUTOMATED DATA PROCESSING.
‘‘(a) IN GENERAL.—In order for a State to meet the
requirements of this section, the State agency administer-
ing the State program under this part shall have in oper-
ation a single statewide automated data processing and
information retrieval system which has the capability to
perform the tasks specified in this section with the fre-
quency and in the manner required by or under this part.
‘‘(b) PROGRAM MANAGEMENT.—The automated sys-
tem required by this section shall perform such functions
as the Secretary may specify relating to management of
the State program under this part, including—
104
‘‘(1) controlling and accounting for use of Fed-
eral, State, and local funds in carrying out the pro-
gram; and
‘‘(2) maintaining the data necessary to meet
Federal reporting requirements under this part on a
timely basis.
‘‘(c) CALCULATION
OF
PERFORMANCE
INDICA-
TORS.—In order to enable the Secretary to determine the
incentive payments and penalty adjustments required by
sections 452(g) and 458, the State agency shall—
‘‘(1) use the automated system—
‘‘(A) to maintain the requisite data on
State performance with respect to paternity es-
tablishment and child support enforcement in
the State; and
‘‘(B) to calculate the paternity establish-
ment percentage for the State for each fiscal
year; and
‘‘(2) have in place systems controls to ensure
the completeness and reliability of, and ready access
to, the data described in paragraph (1)(A), and the
accuracy of the calculations described in paragraph
(1)(B).
‘‘(d) INFORMATION INTEGRITY AND SECURITY.—The
State agency shall have in effect safeguards on the integ-
105
rity, accuracy, and completeness of, access to, and use of
data in the automated system required by this section,
which shall include the following (in addition to such other
safeguards as the Secretary may specify in regulations):
‘‘(1) POLICIES RESTRICTING ACCESS.—Written
policies concerning access to data by State agency
personnel, and sharing of data with other persons,
which—
‘‘(A) permit access to and use of data only
to the extent necessary to carry out the State
program under this part; and
‘‘(B) specify the data which may be used
for particular program purposes, and the per-
sonnel permitted access to such data.
‘‘(2) SYSTEMS
CONTROLS.—Systems controls
(such as passwords or blocking of fields) to ensure
strict adherence to the policies described in para-
graph (1).
‘‘(3) MONITORING OF ACCESS.—Routine mon-
itoring of access to and use of the automated sys-
tem, through methods such as audit trails and feed-
back mechanisms, to guard against and promptly
identify unauthorized access or use.
‘‘(4) TRAINING
AND
INFORMATION.—Proce-
dures to ensure that all personnel (including State
106
and local agency staff and contractors) who may
have access to or be required to use confidential pro-
gram data are informed of applicable requirements
and penalties (including those in section 6103 of the
Internal Revenue Code of 1986), and are adequately
trained in security procedures.
‘‘(5) PENALTIES.—Administrative penalties (up
to and including dismissal from employment) for un-
authorized access to, or disclosure or use of, con-
fidential data.’’.
(3) REGULATIONS.—The Secretary of Health
and Human Services shall prescribe final regulations
for implementation of section 454A of the Social Se-
curity Act not later than 2 years after the date of
the enactment of this Act.
(4) 
IMPLEMENTATION
TIMETABLE.—Section
454(24) (42 U.S.C. 654(24)), as amended by section
103(a)(1) of this Act, is amended to read as follows:
‘‘(24) provide that the State will have in effect
an automated data processing and information re-
trieval system—
‘‘(A) by October 1, 1997, which meets all
requirements of this part which were enacted on
or before the date of enactment of the Family
Support Act of 1988, and
107
‘‘(B) by October 1, 1999, which meets all
requirements of this part enacted on or before
the date of the enactment of the Child Support
Improvement Act of 1996, except that such
deadline shall be extended by 1 day for each
day (if any) by which the Secretary fails to
meet the deadline imposed by section 504(a)(3)
of the Child Support Improvement Act of
1996;’’.
(b) SPECIAL FEDERAL MATCHING RATE FOR DE-
VELOPMENT COSTS OF AUTOMATED SYSTEMS.—
(1) IN GENERAL.—Section 455(a) (42 U.S.C.
655(a)) is amended—
(A) in paragraph (1)(B)—
(i) by striking ‘‘90 percent’’ and in-
serting ‘‘the percent specified in paragraph
(3)’’;
(ii) by striking ‘‘so much of’’; and
(iii) by striking ‘‘which the Secretary’’
and all that follows and inserting ‘‘, and’’;
and
(B) by adding at the end the following new
paragraph:
‘‘(3)(A) The Secretary shall pay to each State, for
each quarter in fiscal years 1996 and 1997, 90 percent
108
of so much of the State expenditures described in para-
graph (1)(B) as the Secretary finds are for a system meet-
ing the requirements specified in section 454(16) (as in
effect on September 30, 1995) but limited to the amount
approved for States in the advance planning documents
of such States submitted on or before September 30,
1995.
‘‘(B)(i) The Secretary shall pay to each State, for
each quarter in fiscal years 1996 through 2001, the per-
centage specified in clause (ii) of so much of the State
expenditures described in paragraph (1)(B) as the Sec-
retary finds are for a system meeting the requirements
of sections 454(16) and 454A.
‘‘(ii) The percentage specified in this clause is 80 per-
cent.’’.
(2) TEMPORARY
LIMITATION
ON
PAYMENTS
UNDER SPECIAL FEDERAL MATCHING RATE.—
(A) 
IN
GENERAL.—The 
Secretary 
of
Health and Human Services may not pay more
than $400,000,000 in the aggregate under sec-
tion 455(a)(3)(B) of the Social Security Act for
fiscal years 1996 through 2001.
(B) ALLOCATION OF LIMITATION AMONG
STATES.—The total amount payable to a State
under section 455(a)(3)(B) of such Act for fis-
109
cal years 1996 through 2001 shall not exceed
the limitation determined for the State by the
Secretary of Health and Human Services in
regulations.
(C) ALLOCATION FORMULA.—The regula-
tions referred to in subparagraph (B) shall pre-
scribe a formula for allocating the amount spec-
ified in subparagraph (A) among States with
plans approved under part D of title IV of the
Social Security Act, which shall take into ac-
count—
(i) the relative size of State caseloads
under such part; and
(ii) the level of automation needed to
meet the automated data processing re-
quirements of such part.
(c) CONFORMING AMENDMENT.—Section 123(c) of
the Family Support Act of 1988 (102 Stat. 2352; Public
Law 100–485) is repealed.
SEC. 505. TECHNICAL ASSISTANCE.
(a) FOR TRAINING OF FEDERAL AND STATE STAFF,
RESEARCH AND DEMONSTRATION PROGRAMS, AND SPE-
CIAL PROJECTS OF REGIONAL OR NATIONAL SIGNIFI-
CANCE.—Section 452 (42 U.S.C. 652) is amended by add-
ing at the end the following new subsection:
110
‘‘(j) Out of any money in the Treasury of the United
States not otherwise appropriated, there is hereby appro-
priated to the Secretary for each fiscal year an amount
equal to 1 percent of the total amount paid to the Federal
Government pursuant to section 457(a) during the imme-
diately preceding fiscal year (as determined on the basis
of the most recent reliable data available to the Secretary
as of the end of the 3rd calendar quarter following the
end of such preceding fiscal year), to cover costs incurred
by the Secretary for—
‘‘(1) information dissemination and technical
assistance to States, training of State and Federal
staff, staffing studies, and related activities needed
to improve programs under this part (including tech-
nical assistance concerning State automated systems
required by this part); and
‘‘(2) research, demonstration, and special
projects of regional or national significance relating
to the operation of State programs under this part.
The amount appropriated under this subsection shall re-
main available until expended.’’.
(b) OPERATION
OF FEDERAL PARENT LOCATOR
SERVICE.—Section 453 (42 U.S.C. 653), as amended by
section 206 of this Act, is amended by adding at the end
the following new subsection:
111
‘‘(o) RECOVERY OF COSTS.—Out of any money in the
Treasury of the United States not otherwise appropriated,
there is hereby appropriated to the Secretary for each fis-
cal year an amount equal to 2 percent of the total amount
paid to the Federal Government pursuant to section
457(a) during the immediately preceding fiscal year (as
determined on the basis of the most recent reliable data
available to the Secretary as of the end of the 3rd calendar
quarter following the end of such preceding fiscal year),
to cover costs incurred by the Secretary for operation of
the Federal Parent Locator Service under this section, to
the extent such costs are not recovered through user
fees.’’.
SEC. 506. REPORTS AND DATA COLLECTION BY THE SEC-
RETARY.
(a) ANNUAL REPORT TO CONGRESS.—
(1) 
Section 
452(a)(10)(A) 
(42 
U.S.C.
652(a)(10)(A)) is amended—
(A) by striking ‘‘this part;’’ and inserting
‘‘this part, including—’’; and
(B) by adding at the end the following new
clauses:
‘‘(i) the total amount of child support
payments collected as a result of services
112
furnished during the fiscal year to individ-
uals receiving services under this part;
‘‘(ii) the cost to the States and to the
Federal Government of so furnishing the
services; and
‘‘(iii) the number of cases involving
families—
‘‘(I) who became ineligible for as-
sistance under State programs funded
under part A during a month in the
fiscal year; and
‘‘(II) with respect to whom a
child support payment was received in
the month;’’.
(2) 
Section 
452(a)(10)(C) 
(42 
U.S.C.
652(a)(10)(C)) is amended—
(A) in the matter preceding clause (i)—
(i) by striking ‘‘with the data required
under each clause being separately stated
for cases’’ and inserting ‘‘separately stated
for (1) cases’’;
(ii) by striking ‘‘cases where the child
was formerly receiving’’ and inserting ‘‘or
formerly received’’;
113
(iii) by inserting ‘‘or 1912’’ after
‘‘471(a)(17)’’; and
(iv) by inserting ‘‘(2)’’ before ‘‘all
other’’;
(B) in each of clauses (i) and (ii), by strik-
ing ‘‘, and the total amount of such obliga-
tions’’;
(C) in clause (iii), by striking ‘‘described
in’’ and all that follows and inserting ‘‘in which
support was collected during the fiscal year;’’;
(D) by striking clause (iv); and
(E) by redesignating clause (v) as clause
(vii), and inserting after clause (iii) the follow-
ing new clauses:
‘‘(iv) the total amount of support col-
lected during such fiscal year and distrib-
uted as current support;
‘‘(v) the total amount of support col-
lected during such fiscal year and distrib-
uted as arrearages;
‘‘(vi) the total amount of support due
and unpaid for all fiscal years; and’’.
(3) 
Section 
452(a)(10)(G) 
(42 
U.S.C.
652(a)(10)(G)) is amended by striking ‘‘on the use
of Federal courts and’’.
114
(4) Section 452(a)(10) (42 U.S.C. 652(a)(10))
is amended—
(A) in subparagraph (H), by striking
‘‘and’’;
(B) in subparagraph (I), by striking the
period and inserting ‘‘; and’’; and
(C) by inserting after subparagraph (I) the
following new subparagraph:
‘‘(J) compliance, by State, with the stand-
ards established pursuant to subsections (h)
and (i).’’.
(5) Section 452(a)(10) (42 U.S.C. 652(a)(10))
is amended by striking all that follows subparagraph
(J), as added by paragraph (4).
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall be effective with respect to fiscal year
1997 and succeeding fiscal years.
TITLE VI—ESTABLISHMENT AND
MODIFICATION OF SUPPORT
ORDERS
SEC. 601. SIMPLIFIED PROCESS FOR REVIEW AND ADJUST-
MENT OF CHILD SUPPORT ORDERS.
Section 466(a)(10) (42 U.S.C. 666(a)(10)) is amend-
ed to read as follows:
115
‘‘(10) REVIEW AND ADJUSTMENT OF SUPPORT
ORDERS UPON REQUEST.—Procedures under which
the State may review and adjust each support order
being enforced under this part if there is an assign-
ment under part A, or shall review and adjust each
support order being enforced under this part upon
the request of either parent. Such procedures shall
provide the following:
‘‘(A) IN GENERAL.—
‘‘(i) 3-YEAR CYCLE.—Except as pro-
vided in subparagraphs (B) and (C), the
State shall review and, as appropriate, ad-
just the support order every 3 years, tak-
ing into account the best interests of the
child involved.
‘‘(ii) METHODS
OF
ADJUSTMENT.—
The State may elect to review and, if ap-
propriate, adjust an order pursuant to
clause (i) by—
‘‘(I) reviewing and, if appro-
priate, adjusting the order in accord-
ance with the guidelines established
pursuant to section 467(a) if the
amount of the child support award
under the order differs from the
116
amount that would be awarded in ac-
cordance with the guidelines; or
‘‘(II) applying a cost-of-living ad-
justment to the order in accordance
with a formula developed by the State
and permit either party to contest the
adjustment, within 30 days after the
date of the notice of the adjustment,
by making a request for review and, if
appropriate, adjustment of the order
in accordance with the child support
guidelines established pursuant to sec-
tion 467(a).
‘‘(iii) NO PROOF OF CHANGE IN CIR-
CUMSTANCES
NECESSARY.—Any adjust-
ment under this subparagraph (A) shall be
made without a requirement for proof or
showing of a change in circumstances.
‘‘(B) AUTOMATED
METHOD.—The State
may use automated methods (including auto-
mated comparisons with wage or State income
tax data) to identify orders eligible for review,
conduct the review, identify orders eligible for
adjustment, and apply the appropriate adjust-
117
ment to the orders eligible for adjustment
under the threshold established by the State.
‘‘(C) 
REQUEST
UPON
SUBSTANTIAL
CHANGE IN CIRCUMSTANCES.—The State shall,
at the request of either parent subject to such
an order or of any State child support enforce-
ment agency, review and, if appropriate, adjust
the order in accordance with the guidelines es-
tablished pursuant to section 467(a) based
upon a substantial change in the circumstances
of either parent.
‘‘(D) NOTICE OF RIGHT TO REVIEW.—The
State shall provide notice not less than once
every 3 years to the parents subject to such an
order informing them of their right to request
the State to review and, if appropriate, adjust
the order pursuant to this paragraph. The no-
tice may be included in the order.’’.
SEC. 602. FURNISHING CONSUMER REPORTS FOR CERTAIN
PURPOSES RELATING TO CHILD SUPPORT.
Section 604 of the Fair Credit Reporting Act (15
U.S.C. 1681b) is amended by adding at the end the follow-
ing new paragraphs:
‘‘(4) In response to a request by the head of a
State or local child support enforcement agency (or
118
a State or local government official authorized by
the head of such an agency), if the person making
the request certifies to the consumer reporting agen-
cy that—
‘‘(A) the consumer report is needed for the
purpose of establishing an individual’s capacity
to make child support payments or determining
the appropriate level of such payments;
‘‘(B) the paternity of the consumer for the
child to which the obligation relates has been
established or acknowledged by the consumer in
accordance with State laws under which the ob-
ligation arises (if required by those laws);
‘‘(C) the person has provided at least 10
days’ prior notice to the consumer whose report
is requested, by certified or registered mail to
the last known address of the consumer, that
the report will be requested; and
‘‘(D) the consumer report will be kept con-
fidential, will be used solely for a purpose de-
scribed in subparagraph (A), and will not be
used in connection with any other civil, admin-
istrative, or criminal proceeding, or for any
other purpose.
119
‘‘(5) To an agency administering a State plan
under section 454 of the Social Security Act (42
U.S.C. 654) for use to set an initial or modified
child support award.’’.
SEC. 603. NONLIABILITY FOR FINANCIAL INSTITUTIONS
PROVIDING FINANCIAL RECORDS TO STATE
CHILD SUPPORT ENFORCEMENT AGENCIES
IN CHILD SUPPORT CASES.
Part D of title IV (42 U.S.C. 651–669) is amended
by adding at the end the following:
‘‘SEC. 469A. NONLIABILITY FOR FINANCIAL INSTITUTIONS
PROVIDING FINANCIAL RECORDS TO STATE
CHILD SUPPORT ENFORCEMENT AGENCIES
IN CHILD SUPPORT CASES.
‘‘(a) IN GENERAL.—Notwithstanding any other pro-
vision of Federal or State law, a financial institution shall
not be liable under any Federal or State law to any person
for disclosing any financial record of an individual to a
State child support enforcement agency attempting to es-
tablish, modify, or enforce a child support obligation of
such individual.
‘‘(b) PROHIBITION OF DISCLOSURE OF FINANCIAL
RECORD OBTAINED
BY STATE CHILD SUPPORT EN-
FORCEMENT AGENCY.—A State child support enforcement
agency which obtains a financial record of an individual
120
from a financial institution pursuant to subsection (a)
may disclose such financial record only for the purpose
of, and to the extent necessary in, establishing, modifying,
or enforcing a child support obligation of such individual.
‘‘(c) CIVIL DAMAGES FOR UNAUTHORIZED DISCLO-
SURE.—
‘‘(1) DISCLOSURE BY STATE OFFICER OR EM-
PLOYEE.—If any person knowingly, or by reason of
negligence, discloses a financial record of an individ-
ual in violation of subsection (b), such individual
may bring a civil action for damages against such
person in a district court of the United States.
‘‘(2) NO LIABILITY FOR GOOD FAITH BUT ER-
RONEOUS INTERPRETATION.—No liability shall arise
under this subsection with respect to any disclosure
which results from a good faith, but erroneous, in-
terpretation of subsection (b).
‘‘(3) DAMAGES.—In any action brought under
paragraph (1), upon a finding of liability on the part
of the defendant, the defendant shall be liable to the
plaintiff in an amount equal to the sum of—
‘‘(A) the greater of—
‘‘(i) $1,000 for each act of unauthor-
ized disclosure of a financial record with
121
respect to which such defendant is found
liable; or
‘‘(ii) the sum of—
‘‘(I) the actual damages sus-
tained by the plaintiff as a result of
such unauthorized disclosure; plus
‘‘(II) in the case of a willful dis-
closure or a disclosure which is the re-
sult of gross negligence, punitive dam-
ages; plus
‘‘(B) the costs (including attorney’s fees)
of the action.
‘‘(d) DEFINITIONS.—For purposes of this section—
‘‘(1) FINANCIAL INSTITUTION.—The term ‘fi-
nancial institution’ means—
‘‘(A) a depository institution, as defined in
section 3(c) of the Federal Deposit Insurance
Act (12 U.S.C. 1813(c));
‘‘(B) an institution-affiliated party, as de-
fined in section 3(u) of such Act (12 U.S.C.
1813(u));
‘‘(C) any Federal credit union or State
credit union, as defined in section 101 of the
Federal Credit Union Act (12 U.S.C. 1752), in-
cluding an institution-affiliated party of such a
122
credit union, as defined in section 206(r) of
such Act (12 U.S.C. 1786(r)); and
‘‘(D) any benefit association, insurance
company, safe deposit company, money-market
mutual fund, or similar entity authorized to do
business in the State.
‘‘(2) FINANCIAL RECORD.—The term ‘‘financial
record’’ has the meaning given such term in section
1101 of the Right to Financial Privacy Act of 1978
(12 U.S.C. 3401).’’.
TITLE VII—ENFORCEMENT OF
SUPPORT ORDERS
SEC. 701. INTERNAL REVENUE SERVICE COLLECTION OF
ARREARAGES.
(a) COLLECTION OF FEES.—Section 6305(a) of the
Internal Revenue Code of 1986 (relating to collection of
certain liability) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(3);
(2) by striking the period at the end of para-
graph (4) and inserting ‘‘, and’’;
(3) by adding at the end the following new
paragraph:
‘‘(5) no additional fee may be assessed for ad-
justments to an amount previously certified pursu-
123
ant to such section 452(b) with respect to the same
obligor.’’; and
(4) by striking ‘‘Secretary of Health, Edu-
cation, and Welfare’’ each place it appears and in-
serting ‘‘Secretary of Health and Human Services’’.
(b) EFFECTIVE DATE.—The amendments made by
this section shall become effective October 1, 1997.
SEC. 702. AUTHORITY TO COLLECT SUPPORT FROM FED-
ERAL EMPLOYEES.
(a) CONSOLIDATION
AND STREAMLINING
OF AU-
THORITIES.—Section 459 (42 U.S.C. 659) is amended to
read as follows:
‘‘SEC. 459. CONSENT BY THE UNITED STATES TO INCOME
WITHHOLDING, GARNISHMENT, AND SIMILAR
PROCEEDINGS FOR ENFORCEMENT OF CHILD
SUPPORT AND ALIMONY OBLIGATIONS.
‘‘(a) CONSENT TO SUPPORT ENFORCEMENT.—Not-
withstanding any other provision of law (including section
207 of this Act and section 5301 of title 38, United States
Code), effective January 1, 1975, moneys (the entitlement
to which is based upon remuneration for employment) due
from, or payable by, the United States or the District of
Columbia (including any agency, subdivision, or instru-
mentality thereof) to any individual, including members
of the Armed Forces of the United States, shall be subject,
124
in like manner and to the same extent as if the United
States or the District of Columbia were a private person,
to withholding in accordance with State law enacted pur-
suant to subsections (a)(1) and (b) of section 466 and reg-
ulations of the Secretary under such subsections, and to
any other legal process brought, by a State agency admin-
istering a program under a State plan approved under this
part or by an individual obligee, to enforce the legal obliga-
tion of the individual to provide child support or alimony.
‘‘(b) CONSENT TO REQUIREMENTS APPLICABLE TO
PRIVATE PERSON.—With respect to notice to withhold in-
come pursuant to subsection (a)(1) or (b) of section 466,
or any other order or process to enforce support obliga-
tions against an individual (if the order or process con-
tains or is accompanied by sufficient data to permit
prompt identification of the individual and the moneys in-
volved), each governmental entity specified in subsection
(a) shall be subject to the same requirements as would
apply if the entity were a private person, except as other-
wise provided in this section.
‘‘(c) DESIGNATION OF AGENT; RESPONSE TO NOTICE
OR PROCESS—
‘‘(1) DESIGNATION OF AGENT.—The head of
each agency subject to this section shall—
125
‘‘(A) designate an agent or agents to re-
ceive orders and accept service of process in
matters relating to child support or alimony;
and
‘‘(B) annually publish in the Federal Reg-
ister the designation of the agent or agents,
identified by title or position, mailing address,
and telephone number.
‘‘(2) RESPONSE TO NOTICE OR PROCESS.—If an
agent designated pursuant to paragraph (1) of this
subsection receives notice pursuant to State proce-
dures in effect pursuant to subsection (a)(1) or (b)
of section 466, or is effectively served with any
order, process, or interrogatory, with respect to an
individual’s child support or alimony payment obli-
gations, the agent shall—
‘‘(A) as soon as possible (but not later
than 15 days) thereafter, send written notice of
the notice or service (together with a copy of
the notice or service) to the individual at the
duty station or last-known home address of the
individual;
‘‘(B) within 30 days (or such longer period
as may be prescribed by applicable State law)
after receipt of a notice pursuant to such State