SEC. 113. 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
under this part, which shall include such infor-
mation as may be necessary to measure State
compliance with Federal requirements for expe-
dited procedures and timely case processing,
using such standards and procedures as are re-
quired by the Secretary, under which the State
agency will determine the extent to which such
program is in conformity with applicable re-
quirements with respect to the operation of
State programs under this part (including the
status of complaints filed under the procedure
required under paragraph (12)(B)); and
‘‘(B) a process of extracting from the
State automated data processing system and
transmitting to the Secretary data and calcula-
tions concerning the levels of accomplishment
(and rates of improvement) with respect to ap-
plicable performance indicators (including IV–D
paternity establishment percentages and overall
performance in child support enforcement) to
the extent necessary for purposes of sections
452(g) and 458.’’.
(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
section 452(g) and 458, and determine the amount
(if any) of penalty reductions pursuant to section
455(c) to be applied to the State;
‘‘(B) review annual reports by State agencies
pursuant to section 454(15)(A) on State program
conformity with Federal requirements; evaluate any
elements of a State program in which significant de-
ficiencies are indicated by such report on the status
of complaints under the State procedure under sec-
tion 454(12)(B); and, as appropriate, provide to the
State agency 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 United States
Comptroller General—
‘‘(i) at least once every 3 years (or more
frequently, in the case of a State which fails to
meet requirements of this part, or of regula-
tions implementing such requirements, concern-
ing performance standards and reliability of
program data) to assess the completeness, reli-
ability, and security of the data, and the accu-
racy of the reporting systems, used for the cal-
culations of performance indicators specified in
subsection (g) and section 458;
‘‘(ii) of the adequacy of financial manage-
ment of the State program, including assess-
ments of—
‘‘(I) whether Federal and other funds
made available to carry out the State pro-
gram under this part are being appro-
priately expended, and are properly and
fully accounted for; and
‘‘(II) whether collections and disburse-
ments of support payments and program
income are carried out correctly and are
properly and 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 on or after the date one year after en-
actment of this section.
SEC. 114. 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-
quirements of this part relating to expedited processes and
timely case processing) to be applied in following such pro-
cedures’’ before the semicolon.
(b) STATE PLAN REQUIREMENT.—Section 454 (42
U.S.C. 654), as amended by section 104(a) of this Act,
is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(24);
(2) by striking the period at the end of para-
graph (25) and inserting ‘‘; and’’; and
(3) by adding after paragraph (25) the follow-
ing:
‘‘(26) 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. 115. AUTOMATED DATA PROCESSING REQUIREMENTS.
(a) REVISED REQUIREMENTS.—(1) 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’’;
(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) Part D of title IV (42 U.S.C. 651–669) is amend-
ed by inserting after section 454 the following new section:
‘‘AUTOMATED DATA PROCESSING
‘‘SEC. 454A. (a) IN GENERAL.—In order to meet the
requirements of this section, for purposes of the require-
ment of section 454(16), a State agency shall have in op-
eration a single statewide automated data processing and
information retrieval system which has the capability to
perform the tasks specified in this section, and performs
such tasks with the frequency and in the manner specified
in this part or in regulations or guidelines of the Sec-
retary.
‘‘(b) PROGRAM MANAGEMENT.—The automated sys-
tem required under this section shall perform such func-
tions as the Secretary may specify relating to management
of the program under this part, including—
‘‘(1) controlling and accounting for use of Fed-
eral, State, and local funds to carry out such pro-
gram; and
‘‘(2) maintaining the data necessary to meet
Federal reporting requirements on a timely basis.
‘‘(c) CALCULATION
OF
PERFORMANCE
INDICA-
TORS.—In order to enable the Secretary to determine the
incentive 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 IV–D paternity es-
tablishment percentage and overall performance
in child support enforcement 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-
rity, accuracy, and completeness of, access to, and use of
data in the automated system required under this section,
which shall include the following (in addition to such other
safeguards as the Secretary specifies 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 program re-
sponsibilities;
‘‘(B) specify the data which may be used
for particular program purposes, and the per-
sonnel permitted access to such data; and
‘‘(C) ensure that data obtained or disclosed
for a limited program purpose is not used or
redisclosed for another, impermissible purpose.
‘‘(2) SYSTEMS
CONTROLS.—Systems controls
(such as passwords or blocking of fields) to ensure
strict adherence to the policies specified under 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.—The State
agency shall have in effect procedures to ensure that
all personnel (including State and local agency staff
and contractors) who may have access to or be re-
quired to use sensitive or confidential program data
are fully informed of applicable requirements and
penalties, and are adequately trained in security pro-
cedures.
‘‘(5) PENALTIES.—The State agency shall have
in effect administrative penalties (up to and includ-
ing dismissal from employment) for unauthorized ac-
cess to, or disclosure or use of, confidential data.’’.
(3) REGULATIONS.—Section 452 (42 U.S.C. 652) is
amended by adding at the end the following:
‘‘(j) The Secretary shall prescribe final regulations
for implementation of the requirements of section 454A
not later than 2 years after the date of the enactment of
this subsection.’’.
(4) 
IMPLEMENTATION
TIMETABLE.—Section
454(24) (42 U.S.C. 654(24)), as amended by sections
104(a)(2) and 114(b)(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, 1995, meeting all re-
quirements of this part which were enacted on
or before the date of enactment of the Family
Support Act of 1988; and
‘‘(B) by October 1, 1999, meeting all re-
quirements of this part enacted on or before the
date of enactment of the Child Support Respon-
sibility Act of 1995 (but this provision shall not
be construed to alter earlier deadlines specified
for elements of such system), 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 452(j);’’.
(b) SPECIAL FEDERAL MATCHING RATE FOR DE-
VELOPMENT COSTS OF AUTOMATED SYSTEMS.—Section
455(a) (42 U.S.C. 655(a)) is amended—
(1) in paragraph (1)(B)—
(A) by striking ‘‘90 percent’’ and inserting
‘‘the percent specified in paragraph (3)’’;
(B) by striking ‘‘so much of’’; and
(C) by striking ‘‘which the Secretary’’ and
all that follows and inserting ‘‘, and’’; and
(2) by adding at the end the following new
paragraph:
‘‘(3)(A) The Secretary shall pay to each State, for
each quarter in fiscal year 1996, 90 percent of so much
of State expenditures described in subparagraph (1)(B) as
the Secretary finds are for a system meeting the require-
ments specified in section 454(16), or meeting such re-
quirements without regard to clause (D) thereof.
‘‘(B)(i) The Secretary shall pay to each State, for
each quarter in fiscal years 1997 through 2001, the per-
centage specified in clause (ii) of so much of State expend-
itures described in subparagraph (1)(B) as the Secretary
finds are for a system meeting the requirements specified
in section 454(16) and 454A, subject to clause (iii).
‘‘(ii) The percentage specified in this clause, for pur-
poses of clause (i), is the higher of—
‘‘(I) 80 percent, or
‘‘(II) the percentage otherwise applicable to
Federal payments to the State under subparagraph
(A) (as adjusted pursuant to section 458).’’.
(c) CONFORMING AMENDMENT.—Section 123(c) of
the Family Support Act of 1988 (102 Stat. 2352; Public
Law 100–485) is repealed.
(d) ADDITIONAL PROVISIONS.—For additional provi-
sions of section 454A, as added by subsection (a) of this
section, see the amendments made by sections 121,
122(c), and 133(d) of this Act.
SEC. 116. DIRECTOR OF CSE PROGRAM; STAFFING STUDY.
(a) REPORTING TO SECRETARY.—Section 452(a) (42
U.S.C. 652(a)) is amended in the matter preceding para-
graph (1) by striking ‘‘directly’’.
(b) STAFFING STUDIES.—
(1) SCOPE.—The Secretary of Health and
Human Services shall, directly or by contract, con-
duct studies of the staffing of each State child sup-
port enforcement program under part D of title IV
of the Social Security Act. Such studies shall include
a review of the staffing needs created by require-
ments for automated data processing, maintenance
of a central case registry and centralized collections
of child support, and of changes in these needs re-
sulting from changes in such requirements. Such
studies shall examine and report on effective staffing
practices used by the States and on recommended
staffing procedures.
(2) FREQUENCY OF STUDIES.—The Secretary
shall complete the first staffing study required under
paragraph (1) by October 1, 1997, and may conduct
additional studies subsequently at appropriate inter-
vals.
(3) REPORT
TO
THE
CONGRESS.—The Sec-
retary shall submit a report to the Congress stating
the findings and conclusions of each study conducted
under this subsection.
SEC. 117. FUNDING FOR SECRETARIAL ASSISTANCE TO
STATE PROGRAMS.
Section 452 (42 U.S.C. 652), as amended by section
115(a)(3) of this Act, is amended by adding at the end
the following new subsection:
‘‘(k) FUNDING FOR FEDERAL ACTIVITIES ASSISTING
STATE PROGRAMS.—(1) There shall be available to the
Secretary, from amounts appropriated for fiscal year 1996
and each succeeding fiscal year for payments to States