552
contractor responsible directly to the State agen-
cy; and
‘‘(B) in coordination with the automated
system established by the State pursuant to sec-
tion 454A.
‘‘(3) 
LINKING
OF
LOCAL
DISBURSEMENT
UNITS.—The State disbursement unit may be estab-
lished by linking local disbursement units through an
automated information network, subject to this sec-
tion. The Secretary must agree that the system will
not cost more nor take more time to establish or oper-
ate than a centralized system. In addition, employers
shall be given 1 location to which income withholding
is sent.
‘‘(b) REQUIRED PROCEDURES.—The State disburse-
ment unit shall use automated procedures, electronic proc-
esses, and computer-driven technology to the maximum ex-
tent feasible, efficient, and economical, for the collection and
disbursement of support payments, including procedures—
‘‘(1) for receipt of payments from parents, em-
ployers, and other States, and for disbursements to
custodial parents and other obligees, the State agency,
and the agencies of other States;
‘‘(2) for accurate identification of payments;
553
‘‘(3) to ensure prompt disbursement of the custo-
dial parent’s share of any payment; and
‘‘(4) to furnish to any parent, upon request,
timely information on the current status of support
payments under an order requiring payments to be
made by or to the parent.
‘‘(c) TIMING OF DISBURSEMENTS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the State disbursement unit shall distribute
all amounts payable under section 457(a) within 2
business days after receipt from the employer or other
source of periodic income, if sufficient information
identifying the payee is provided.
‘‘(2) PERMISSIVE RETENTION OF ARREARAGES.—
The State disbursement unit may delay the distribu-
tion of collections toward arrearages until the resolu-
tion of any timely appeal with respect to such arrear-
ages.
‘‘(d) BUSINESS DAY DEFINED.—As used in this sec-
tion, the term ‘business day’ means a day on which State
offices are open for regular business.’’.
(c) USE OF AUTOMATED SYSTEM.—Section 454A, as
added by section 445(a)(2) of this Act and as amended by
section 411 of this Act, is amended by adding at the end
the following new subsection:
554
‘‘(g) COLLECTION AND DISTRIBUTION OF SUPPORT
PAYMENTS.—
‘‘(1) IN GENERAL.—The State shall use the auto-
mated system required by this section, to the maxi-
mum extent feasible, to assist and facilitate the collec-
tion and disbursement of support payments through
the State disbursement unit operated under section
454B, through the performance of functions, includ-
ing, at a minimum—
‘‘(A) transmission of orders and notices to
employers (and other debtors) for the withholding
of wages and other income—
‘‘(i) within 2 business days after re-
ceipt from a court, another State, an em-
ployer, the Federal Parent Locator Service,
or another source recognized by the State of
notice of, and the income source subject to,
such withholding; and
‘‘(ii) using uniform formats prescribed
by the Secretary;
‘‘(B) ongoing monitoring to promptly iden-
tify failures to make timely payment of support;
and
‘‘(C) automatic use of enforcement proce-
dures (including procedures authorized pursuant
555
to section 466(c)) where payments are not timely
made.
‘‘(2) BUSINESS DAY DEFINED.—As used in para-
graph (1), the term ‘business day’ means a day on
which State offices are open for regular business.’’.
(d) EFFECTIVE DATE.—The amendments made by this
section shall become effective on October 1, 1998.
SEC. 413. STATE DIRECTORY OF NEW HIRES.
(a) STATE PLAN REQUIREMENT.—Section 454 (42
U.S.C. 654), as amended by sections 404(a) and 412(a) of
this Act, is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(25);
(2) by striking the period at the end of para-
graph (26) and inserting ‘‘; and’’; and
(3) by adding after paragraph (26) the following
new paragraph:
‘‘(27) provide that, on and after October 1, 1997,
the State will operate a State Directory of New Hires
in accordance with section 453A.’’.
(b) STATE DIRECTORY OF NEW HIRES.—Part D of
title IV (42 U.S.C. 651–669) is amended by inserting after
section 453 the following new section:
‘‘SEC. 453A. STATE DIRECTORY OF NEW HIRES.
‘‘(a) ESTABLISHMENT.—
556
‘‘(1) IN GENERAL.—Not later than October 1,
1997, each State shall establish an automated direc-
tory (to be known as the ‘State Directory of New
Hires’) which shall contain information supplied in
accordance with subsection (b) by employers on each
newly hired employee.
‘‘(2) DEFINITIONS.—As used in this section:
‘‘(A) EMPLOYEE.—The term ‘employee’—
‘‘(i) means an individual who is an
employee within the meaning of chapter 24
of the Internal Revenue Code of 1986; and
‘‘(ii) does not include an employee of a
Federal or State agency performing intel-
ligence or counterintelligence functions, if
the head of such agency has determined that
reporting pursuant to paragraph (1) with
respect to the employee could endanger the
safety of the employee or compromise an on-
going investigation or intelligence mission.
‘‘(B) EMPLOYER.—The term ‘employer’ in-
cludes—
‘‘(i) any governmental entity, and
‘‘(ii) any labor organization.
‘‘(C) LABOR
ORGANIZATION.—The term
‘labor organization’ shall have the meaning given
557
such term in section 2(5) of the National Labor
Relations Act, and includes any entity (also
known as a ‘hiring hall’) which is used by the
organization and an employer to carry out re-
quirements described in section 8(f)(3) of such
Act of an agreement between the organization
and the employer.
‘‘(b) EMPLOYER INFORMATION.—
‘‘(1) REPORTING
REQUIREMENT.—Each em-
ployer shall furnish to the Directory of New Hires of
the State in which a newly hired employee works, a
report that contains the name, address, and social se-
curity number of the employee, and the name of, and
identifying number assigned under section 6109 of the
Internal Revenue Code of 1986 to, the employer.
‘‘(2) TIMING OF REPORT.—The report required
by paragraph (1) with respect to an employee shall
be made not later than the later of—
‘‘(A) 15 days after the date the employer
hires the employee; or
‘‘(B) in the case of an employer that reports
by magnetic or electronic means, the 1st business
day of the week following the date on which the
employee 1st receives wages or other compensa-
tion from the employer.
558
‘‘(c) REPORTING FORMAT AND METHOD.—Each report
required by subsection (b) shall be made on a W–4 form
or the equivalent, and may be transmitted by 1st class mail,
magnetically, or electronically.
‘‘(d) CIVIL MONEY PENALTIES ON NONCOMPLYING EM-
PLOYERS.—
‘‘(1) IN GENERAL.—An employer that fails to
comply with subsection (b) with respect to an em-
ployee shall be subject to a civil money penalty of—
‘‘(A) $25; or
‘‘(B) $500 if, under State law, the failure is
the result of a conspiracy between the employer
and the employee to not supply the required re-
port or to supply a false or incomplete report.
‘‘(2) APPLICABILITY OF SECTION 1128.—Section
1128 (other than subsections (a) and (b) of such sec-
tion) shall apply to a civil money penalty under
paragraph (1) of this subsection in the same manner
as such section applies to a civil money penalty or
proceeding under section 1128A(a).
‘‘(e) ENTRY OF EMPLOYER INFORMATION.—Informa-
tion shall be entered into the data base maintained by the
State Directory of New Hires within 5 business days of re-
ceipt from an employer pursuant to subsection (b).
‘‘(f) INFORMATION COMPARISONS.—
559
‘‘(1) IN GENERAL.—Not later than October 1,
1998, an agency designated by the State shall, di-
rectly or by contract, conduct automated comparisons
of the social security numbers reported by employers
pursuant to subsection (b) and the social security
numbers appearing in the records of the State case
registry for cases being enforced under the State plan.
‘‘(2) NOTICE OF MATCH.—When an information
comparison conducted under paragraph (1) reveals a
match with respect to the social security number of an
individual required to provide support under a sup-
port order, the State Directory of New Hires shall
provide the agency administering the State plan ap-
proved under this part of the appropriate State with
the name, address, and social security number of the
employee to whom the social security number is as-
signed, and the name of, and identifying number as-
signed under section 6109 of the Internal Revenue
Code of 1986 to, the employer.
‘‘(g) TRANSMISSION OF INFORMATION.—
‘‘(1) TRANSMISSION OF WAGE WITHHOLDING NO-
TICES TO EMPLOYERS.—Within 2 business days after
the date information regarding a newly hired em-
ployee is entered into the State Directory of New
Hires, the State agency enforcing the employee’s child
560
support obligation shall transmit a notice to the em-
ployer of the employee directing the employer to with-
hold from the wages of the employee an amount equal
to the monthly (or other periodic) child support obli-
gation of the employee, unless the employee’s wages
are not subject to withholding pursuant to section
466(b)(3).
‘‘(2) TRANSMISSIONS TO THE NATIONAL DIREC-
TORY OF NEW HIRES.—
‘‘(A) NEW HIRE INFORMATION.—Within 2
business days after the date information regard-
ing a newly hired employee is entered into the
State Directory of New Hires, the State Direc-
tory of New Hires shall furnish the information
to the National Directory of New Hires.
‘‘(B) WAGE
AND
UNEMPLOYMENT
COM-
PENSATION INFORMATION.—The State Directory
of New Hires shall, on a quarterly basis, furnish
to the National Directory of New Hires extracts
of the reports required under section 303(a)(6) to
be made to the Secretary of Labor concerning the
wages and unemployment compensation paid to
individuals, by such dates, in such format, and
containing such information as the Secretary of
561
Health and Human Services shall specify in reg-
ulations.
‘‘(3) BUSINESS DAY DEFINED.—As used in this
subsection, the term ‘business day’ means a day on
which State offices are open for regular business.
‘‘(h) OTHER USES OF NEW HIRE INFORMATION.—
‘‘(1) LOCATION OF CHILD SUPPORT OBLIGORS.—
The agency administering the State plan approved
under this part shall use information received pursu-
ant to subsection (f)(2) to locate individuals for pur-
poses of establishing paternity and establishing, modi-
fying, and enforcing child support obligations.
‘‘(2) VERIFICATION OF ELIGIBILITY FOR CERTAIN
PROGRAMS.—A State agency responsible for admin-
istering a program specified in section 1137(b) shall
have access to information reported by employers pur-
suant to subsection (b) of this section for purposes of
verifying eligibility for the program.
‘‘(3) ADMINISTRATION
OF
EMPLOYMENT
SECU-
RITY AND WORKERS’ COMPENSATION.—State agencies
operating employment security and workers’ com-
pensation programs shall have access to information
reported by employers pursuant to subsection (b) for
the purposes of administering such programs.’’.
562
SEC. 414. AMENDMENTS CONCERNING INCOME WITHHOLD-
ING.
(a) MANDATORY INCOME WITHHOLDING.—
(1) IN GENERAL.—Section 466(a)(1) (42 U.S.C.
666(a)(1)) is amended to read as follows:
‘‘(1)(A) Procedures described in subsection (b)
for the withholding from income of amounts payable
as support in cases subject to enforcement under the
State plan.
‘‘(B) Procedures under which the wages of a per-
son with a support obligation imposed by a support
order issued (or modified) in the State before October
1, 1996, if not otherwise subject to withholding under
subsection (b), shall become subject to withholding as
provided in subsection (b) if arrearages occur, without
the need for a judicial or administrative hearing.’’.
(2) CONFORMING AMENDMENTS.—
(A) Section 466(a)(8)(B)(iii) (42 U.S.C.
666(a)(8)(B)(iii)) is amended—
(i) by striking ‘‘(5),’’; and
(ii) by inserting ‘‘, and, at the option
of the State, the requirements of subsection
(b)(5)’’ before the period.
(B) Section 466(b) (42 U.S.C. 666(b)) is
amended in the matter preceding paragraph (1),
563
by striking ‘‘subsection (a)(1)’’ and inserting
‘‘subsection (a)(1)(A)’’.
(C) Section 466(b)(4) (42 U.S.C. 666(b)(4))
is amended to read as follows:
‘‘(4)(A) Such withholding must be carried out in
full compliance with all procedural due process re-
quirements of the State, and the State must send no-
tice to each absent parent to whom paragraph (1) ap-
plies—
‘‘(i) that the withholding has commenced;
and
‘‘(ii) of the procedures to follow if the absent
parent desires to contest such withholding on the
grounds that the withholding or the amount
withheld is improper due to a mistake of fact.
‘‘(B) The notice under subparagraph (A) shall
include the information provided to the employer
under paragraph (6)(A).’’.
(D) Section 466(b)(5) (42 U.S.C. 666(b)(5))
is amended by striking all that follows ‘‘adminis-
tered by’’ and inserting ‘‘the State through the
State disbursement unit established pursuant to
section 454B, in accordance with the require-
ments of section 454B.’’.
564
(E) 
Section 
466(b)(6)(A) 
(42 
U.S.C.
666(b)(6)(A)) is amended—
(i) in clause (i), by striking ‘‘to the ap-
propriate agency’’ and all that follows and
inserting ‘‘to the State disbursement unit
within 2 business days after the date the
amount would (but for this subsection) have
been paid or credited to the employee, for
distribution in accordance with this part.’’;
(ii) in clause (ii), by inserting ‘‘be in
a standard format prescribed by the Sec-
retary, and’’ after ‘‘shall’’; and
(iii) by adding at the end the following
new clause:
‘‘(iii) As used in this subparagraph, the term
‘business day’ means a day on which State offices are
open for regular business.’’.
(F) 
Section 
466(b)(6)(D) 
(42 
U.S.C.
666(b)(6)(D)) is amended by striking ‘‘any em-
ployer’’ and all that follows and inserting ‘‘any
employer who—
‘‘(i) discharges from employment, refuses to
employ, or takes disciplinary action against any
absent parent subject to wage withholding re-
quired by this subsection because of the existence
565
of such withholding and the obligations or addi-
tional obligations which it imposes upon the em-
ployer; or
‘‘(ii) fails to withhold support from wages,
or to pay such amounts to the State disburse-
ment unit in accordance with this subsection.’’.
(G) Section 466(b) (42 U.S.C. 666(b)) is
amended by adding at the end the following new
paragraph:
‘‘(11) Procedures under which the agency admin-
istering the State plan approved under this part may
execute a withholding order through electronic means
and without advance notice to the obligor.’’.
(b) CONFORMING AMENDMENT.—Section 466(c) (42
U.S.C. 666(c)) is repealed.
SEC. 415. LOCATOR INFORMATION FROM INTERSTATE NET-
WORKS.
Section 466(a) (42 U.S.C. 666(a)) is amended by add-
ing at the end the following new paragraph:
‘‘(12) Procedures to ensure that all Federal and
State agencies conducting activities under this part
have access to any system used by the State to locate
an individual for purposes relating to motor vehicles
or law enforcement.’’.
566
SEC. 416. EXPANSION OF THE FEDERAL PARENT LOCATOR
SERVICE.
(a) EXPANDED AUTHORITY TO LOCATE INDIVIDUALS
AND ASSETS.—Section 453 (42 U.S.C. 653) is amended—
(1) in subsection (a), by striking all that follows
‘‘subsection (c))’’ and inserting ‘‘, for the purpose of
establishing 
parentage, 
establishing, 
setting 
the
amount of, modifying, or enforcing child support obli-
gations, or enforcing child visitation orders—
‘‘(1) information on, or facilitating the discovery
of, the location of any individual—
‘‘(A) who is under an obligation to pay
child support or provide child visitation rights;
‘‘(B) against whom such an obligation is
sought;
‘‘(C) to whom such an obligation is owed,
including the individual’s social security number (or
numbers), most recent address, and the name, address,
and employer identification number of the individ-
ual’s employer;
‘‘(2) information on the individual’s wages (or
other income) from, and benefits of, employment (in-
cluding rights to or enrollment in group health care
coverage); and
567
‘‘(3) information on the type, status, location,
and amount of any assets of, or debts owed by or to,
any such individual.’’; and
(2) in subsection (b), in the matter preceding
paragraph (1), by striking ‘‘social security’’ and all
that follows through ‘‘absent parent’’ and inserting
‘‘information described in subsection (a)’’.
(b) AUTHORIZED PERSON FOR INFORMATION REGARD-
ING
VISITATION
RIGHTS.—Section 453(c) (42 U.S.C.
653(c)) is amended—
(1) in paragraph (1), by striking ‘‘support’’ and
inserting ‘‘support or to seek to enforce orders provid-
ing child visitation rights’’;
(2) in paragraph (2), by striking ‘‘, or any agent
of such court; and’’ and inserting ‘‘or to issue an
order against a resident parent for visitation rights,
or any agent of such court;’’;
(3) by striking the period at the end of para-
graph (3) and inserting ‘‘; and’’; and
(4) by adding at the end the following new para-
graph:
‘‘(4) the absent parent, only with regard to a
court order against a resident parent for child visita-
tion rights.’’.
568
(c) REIMBURSEMENT FOR INFORMATION FROM FED-
ERAL AGENCIES.—Section 453(e)(2) (42 U.S.C. 653(e)(2))
is amended in the 4th sentence by inserting ‘‘in an amount
which the Secretary determines to be reasonable payment
for the information exchange (which amount shall not in-
clude payment for the costs of obtaining, compiling, or
maintaining the information)’’ before the period.
(d) REIMBURSEMENT FOR REPORTS BY STATE AGEN-
CIES.—Section 453 (42 U.S.C. 653) is amended by adding
at the end the following new subsection:
‘‘(g) The Secretary may reimburse Federal and State
agencies for the costs incurred by such entities in furnishing
information requested by the Secretary under this section
in an amount which the Secretary determines to be reason-
able payment for the information exchange (which amount
shall not include payment for the costs of obtaining, compil-
ing, or maintaining the information).’’.
(e) TECHNICAL AMENDMENTS.—
(1) Sections 452(a)(9), 453(a), 453(b), 463(a),
463(e), and 463(f) (42 U.S.C. 652(a)(9), 653(a),
653(b), 663(a), 663(e), and 663(f)) are each amended
by inserting ‘‘Federal’’ before ‘‘Parent’’ each place
such term appears.
(2) Section 453 (42 U.S.C. 653) is amended in
the heading by adding ‘‘FEDERAL’’ before ‘‘PARENT’’.
569
(f) NEW COMPONENTS.—Section 453 (42 U.S.C. 653),
as amended by subsection (d) of this section, is amended
by adding at the end the following new subsection:
‘‘(h)(1) Not later than October 1, 1998, in order to as-
sist States in administering programs under State plans
approved under this part and programs funded under part
A, and for the other purposes specified in this section, the
Secretary shall establish and maintain in the Federal Par-
ent Locator Service an automated registry (which shall be
known as the ‘Federal Case Registry of Child Support Or-
ders’), which shall contain abstracts of support orders and
other information described in paragraph (2) with respect
to each case in each State case registry maintained pursu-
ant to section 454A(e), as furnished (and regularly up-
dated), pursuant to section 454A(f), by State agencies ad-
ministering programs under this part.
‘‘(2) The information referred to in paragraph (1)
with respect to a case shall be such information as the Sec-
retary may specify in regulations (including the names, so-
cial security numbers or other uniform identification num-
bers, and State case identification numbers) to identify the
individuals who owe or are owed support (or with respect
to or on behalf of whom support obligations are sought to
be established), and the State or States which have the case.
570
‘‘(i)(1) In order to assist States in administering pro-
grams under State plans approved under this part and pro-
grams funded under part A, and for the other purposes spec-
ified in this section, the Secretary shall, not later than Octo-
ber 1, 1996, establish and maintain in the Federal Parent
Locator Service an automated directory to be known as the
National Directory of New Hires, which shall contain the
information supplied pursuant to section 453A(g)(2).
‘‘(2) Information shall be entered into the data base
maintained by the National Directory of New Hires within
2 business days of receipt pursuant to section 453A(g)(2).
‘‘(3) The Secretary of the Treasury shall have access
to the information in the National Directory of New Hires
for purposes of administering section 32 of the Internal
Revenue Code of 1986, or the advance payment of the
earned income tax credit under section 3507 of such Code,
and verifying a claim with respect to employment in a tax
return.
‘‘(j)(1)(A) The Secretary shall transmit information
on individuals and employers maintained under this sec-
tion to the Social Security Administration to the extent nec-
essary for verification in accordance with subparagraph
(B).
‘‘(B) The Social Security Administration shall verify
the accuracy of, correct, or supply to the extent possible,
571
and report to the Secretary, the following information sup-
plied by the Secretary pursuant to subparagraph (A):
‘‘(i) The name, social security number, and birth
date of each such individual.
‘‘(ii) The employer identification number of each
such employer.
‘‘(2) For the purpose of locating individuals in a pa-
ternity establishment case or a case involving the establish-
ment, modification, or enforcement of a support order, the
Secretary shall—
‘‘(A) compare information in the National Di-
rectory of New Hires against information in the sup-
port case abstracts in the Federal Case Registry of
Child Support Orders not less often than every 2
business days; and
‘‘(B) within 2 such days after such a comparison
reveals a match with respect to an individual, report
the information to the State agency responsible for the
case.
‘‘(3) To the extent and with the frequency that the Sec-
retary determines to be effective in assisting States to carry
out their responsibilities under programs operated under
this part and programs funded under part A, the Secretary
shall—
572
‘‘(A) compare the information in each compo-
nent of the Federal Parent Locator Service main-
tained under this section against the information in
each other such component (other than the compari-
son required by paragraph (2)), and report instances
in which such a comparison reveals a match with re-
spect to an individual to State agencies operating
such programs; and
‘‘(B) disclose information in such registries to
such State agencies.
‘‘(4) The National Directory of New Hires shall pro-
vide the Commissioner of Social Security with all informa-
tion in the National Directory, which shall be used to deter-
mine the accuracy of payments under the supplemental se-
curity income program under title XVI and in connection
with benefits under title II.
‘‘(5) The Secretary may provide access to information
reported by employers pursuant to section 453A(b) for re-
search purposes found by the Secretary to be likely to con-
tribute to achieving the purposes of part A or this part,
but without personal identifiers.
‘‘(k)(1) The Secretary shall reimburse the Commis-
sioner of Social Security, at a rate negotiated between the
Secretary and the Commissioner, for the costs incurred by
573
the Commissioner in performing the verification services de-
scribed in subsection (j).
‘‘(2) The Secretary shall reimburse costs incurred by
State directories of new hires in furnishing information as
required by subsection (j)(3), at rates which the Secretary
determines to be reasonable (which rates shall not include
payment for the costs of obtaining, compiling, or maintain-
ing such information).
‘‘(3) A State or Federal agency that receives informa-
tion from the Secretary pursuant to this section shall reim-
burse the Secretary for costs incurred by the Secretary in
furnishing the information, at rates which the Secretary de-
termines to be reasonable (which rates shall include pay-
ment for the costs of obtaining, verifying, maintaining, and
comparing the information).
‘‘(l) Information in the Federal Parent Locator Serv-
ice, and information resulting from comparisons using such
information, shall not be used or disclosed except as ex-
pressly provided in this section, subject to section 6103 of
the Internal Revenue Code of 1986.
‘‘(m) The Secretary shall establish and implement safe-
guards with respect to the entities established under this
section designed to—
‘‘(1) ensure the accuracy and completeness of in-
formation in the Federal Parent Locator Service; and
574
‘‘(2) restrict access to confidential information in
the Federal Parent Locator Service to authorized per-
sons, and restrict use of such information to author-
ized purposes.’’.
(f) 
QUARTERLY
WAGE
REPORTING.—Section
1137(a)(3) (42 U.S.C. 1320b–7(a)(3)) is amended—
(1) by inserting ‘‘(including governmental enti-
ties)’’ after ‘‘employers’’; and
(2) by inserting ‘‘, and except that no report
shall be filed with respect to an employee of a Federal
or State agency performing intelligence or counter-
intelligence functions, if the head of such agency has
determined that filing such a report could endanger
the safety of the employee or compromise an ongoing
investigation or intelligence mission’’ after ‘‘para-
graph (2)’’.
(g) CONFORMING AMENDMENTS.—
(1) TO PART D OF TITLE IV OF THE SOCIAL SE-
CURITY
ACT.—Section 
454(8)(B) 
(42 
U.S.C.
654(8)(B)) is amended to read as follows:
‘‘(B) the Federal Parent Locator Service es-
tablished under section 453;’’.
(2) TO
FEDERAL
UNEMPLOYMENT
TAX
ACT.—
Section 3304(a)(16) of the Internal Revenue Code of
1986 is amended—
575
(A) by striking ‘‘Secretary of Health, Edu-
cation, and Welfare’’ each place such term ap-
pears and inserting ‘‘Secretary of Health and
Human Services’’;
(B) in subparagraph (B), by striking ‘‘such
information’’ and all that follows and inserting
‘‘information furnished under subparagraph (A)
or (B) is used only for the purposes authorized
under such subparagraph;’’;
(C) by striking ‘‘and’’ at the end of sub-
paragraph (A);
(D) by redesignating subparagraph (B) as
subparagraph (C); and
(E) by inserting after subparagraph (A) the
following new subparagraph:
‘‘(B) wage and unemployment compensa-
tion information contained in the records of such
agency shall be furnished to the Secretary of
Health and Human Services (in accordance with
regulations promulgated by such Secretary) as
necessary for the purposes of the National Direc-
tory of New Hires established under section
453(i) of the Social Security Act, and’’.
576
(3) TO STATE GRANT PROGRAM UNDER TITLE III
OF THE SOCIAL SECURITY ACT.—Section 303(a) (42
U.S.C. 503(a)) is amended—
(A) by striking ‘‘and’’ at the end of para-
graph (8);
(B) by striking ‘‘and’’ at the end of para-
graph (9);
(C) by striking the period at the end of
paragraph (10) and inserting ‘‘; and’’; and
(D) by adding after paragraph (10) the fol-
lowing new paragraph:
‘‘(11) The making of quarterly electronic reports,
at such dates, in such format, and containing such
information, as required by the Secretary of Health
and Human Services under section 453(i)(3), and
compliance with such provisions as such Secretary
may find necessary to ensure the correctness and ver-
ification of such reports.’’.
SEC. 417. COLLECTION AND USE OF SOCIAL SECURITY NUM-
BERS FOR USE IN CHILD SUPPORT ENFORCE-
MENT.
(a) STATE LAW REQUIREMENT.—Section 466(a) (42
U.S.C. 666(a)), as amended by section 415 of this Act, is
amended by adding at the end the following new paragraph:
578
ing administrative responsibility for the law involved,
the social security number of the party.’’;
(3) in clause (vi), by striking ‘‘may’’ and insert-
ing ‘‘shall’’; and
(4) by adding at the end the following new
clauses:
‘‘(x) An agency of a State (or a politi-
cal subdivision thereof) charged with the ad-
ministration of any law concerning the is-
suance or renewal of a license, certificate,
permit, or other authorization to engage in
a profession, an occupation, or a commer-
cial activity shall require all applicants for
issuance or renewal of the license, certifi-
cate, permit, or other authorization to pro-
vide the applicant’s social security number
to the agency for the purpose of administer-
ing such laws, and for the purpose of re-
sponding to requests for information from
an agency operating pursuant to part D of
title IV.
‘‘(xi) All divorce decrees, support or-
ders, and paternity determinations issued,
and all paternity acknowledgments made,
in each State shall include the social secu-
579
rity number of each party to the decree,
order, determination, or acknowledgement
in the records relating to the matter.’’.
Subtitle C—Streamlining and
Uniformity of Procedures
SEC. 421. ADOPTION OF UNIFORM STATE LAWS.
Section 466 (42 U.S.C. 666) is amended by adding
at the end the following new subsection:
‘‘(f)(1) In order to satisfy section 454(20)(A) on or
after January 1, 1997, each State must have in effect the
Uniform Interstate Family Support Act, as approved by
the National Conference of Commissioners on Uniform
State Laws in August 1992 (with the modifications and
additions specified in this subsection), and the procedures
required to implement such Act.
‘‘(2) The State law enacted pursuant to paragraph (1)
may be applied to any case involving an order which is
established or modified in a State and which is sought to
be modified or enforced in another State.
‘‘(3) The State law enacted pursuant to paragraph (1)
of this subsection shall contain the following provision in
lieu of section 611(a)(1) of the Uniform Interstate Family
Support Act:
‘‘ ‘(1) the following requirements are met:
580
‘‘ ‘(i) the child, the individual obligee, and
the obligor—
‘‘ ‘(I) do not reside in the issuing State;
and
‘‘ ‘(II) either reside in this State or are
subject to the jurisdiction of this State pur-
suant to section 201; and
‘‘ ‘(ii) in any case where another State is
exercising or seeks to exercise jurisdiction to
modify the order, the conditions of section 204
are met to the same extent as required for pro-
ceedings to establish orders; or’.
‘‘(4) The State law enacted pursuant to paragraph (1)
shall provide that, in any proceeding subject to the law,
process may be served (and proved) upon persons in the
State by any means acceptable in any State which is the
initiating or responding State in the proceeding.’’.
SEC. 422. IMPROVEMENTS TO FULL FAITH AND CREDIT FOR
CHILD SUPPORT ORDERS.
Section 1738B of title 28, United States Code, is
amended—
(1) in subsection (a)(2), by striking ‘‘subsection
(e)’’ and inserting ‘‘subsections (e), (f), and (i)’’;
(2) in subsection (b), by inserting after the 2nd
undesignated paragraph the following:
581
‘‘ ‘child’s home State’ means the State in which
a child lived with a parent or a person acting as par-
ent for at least 6 consecutive months immediately pre-
ceding the time of filing of a petition or comparable
pleading for support and, if a child is less than 6
months old, the State in which the child lived from
birth with any of them. A period of temporary ab-
sence of any of them is counted as part of the 6-month
period.’’;
(3) in subsection (c), by inserting ‘‘by a court of
a State’’ before ‘‘is made’’;
(4) in subsection (c)(1), by inserting ‘‘and sub-
sections (e), (f), and (g)’’ after ‘‘located’’;
(5) in subsection (d)—
(A) by inserting ‘‘individual’’ before ‘‘con-
testant’’; and
(B) by striking ‘‘subsection (e)’’ and insert-
ing ‘‘subsections (e) and (f)’’;
(6) in subsection (e), by striking ‘‘make a modi-
fication of a child support order with respect to a
child that is made’’ and inserting ‘‘modify a child
support order issued’’;
(7) in subsection (e)(1), by inserting ‘‘pursuant
to subsection (i)’’ before the semicolon;
(8) in subsection (e)(2)—
582
(A) by inserting ‘‘individual’’ before ‘‘con-
testant’’ each place such term appears; and
(B) by striking ‘‘to that court’s making the
modification and assuming’’ and inserting ‘‘with
the State of continuing, exclusive jurisdiction for
a court of another State to modify the order and
assume’’;
(9) by redesignating subsections (f) and (g) as
subsections (g) and (h), respectively;
(10) by inserting after subsection (e) the follow-
ing new subsection:
‘‘(f) RECOGNITION OF CHILD SUPPORT ORDERS.—If
1 or more child support orders have been issued in this or
another State with regard to an obligor and a child, a court
shall apply the following rules in determining which order
to recognize for purposes of continuing, exclusive jurisdic-
tion and enforcement:
‘‘(1) If only 1 court has issued a child support
order, the order of that court must be recognized.
‘‘(2) If 2 or more courts have issued child sup-
port orders for the same obligor and child, and only
1 of the courts would have continuing, exclusive juris-
diction under this section, the order of that court
must be recognized.
583
‘‘(3) If 2 or more courts have issued child sup-
port orders for the same obligor and child, and more
than 1 of the courts would have continuing, exclusive
jurisdiction under this section, an order issued by a
court in the current home State of the child must be
recognized, but if an order has not been issued in the
current home State of the child, the order most re-
cently issued must be recognized.
‘‘(4) If 2 or more courts have issued child sup-
port orders for the same obligor and child, and none
of the courts would have continuing, exclusive juris-
diction under this section, a court may issue a child
support order, which must be recognized.
‘‘(5) The court that has issued an order recog-
nized under this subsection is the court having con-
tinuing, exclusive jurisdiction.’’;
(11) in subsection (g) (as so redesignated)—
(A) by striking ‘‘PRIOR’’ and inserting
‘‘MODIFIED’’; and
(B) by striking ‘‘subsection (e)’’ and insert-
ing ‘‘subsections (e) and (f)’’;
(12) in subsection (h) (as so redesignated)—
(A) in paragraph (2), by inserting ‘‘includ-
ing the duration of current payments and other
obligations of support’’ before the comma; and
584
(B) in paragraph (3), by inserting ‘‘arrears
under’’ after ‘‘enforce’’; and
(13) by adding at the end the following new sub-
section:
‘‘(i) REGISTRATION FOR MODIFICATION.—If there is
no individual contestant or child residing in the issuing
State, the party or support enforcement agency seeking to
modify, or to modify and enforce, a child support order is-
sued in another State shall register that order in a State
with jurisdiction over the nonmovant for the purpose of
modification.’’.
SEC. 423. ADMINISTRATIVE ENFORCEMENT IN INTERSTATE
CASES.
Section 466(a) (42 U.S.C. 666(a)), as amended by sec-
tions 415 and 417(a) of this Act, is amended by adding
at the end the following new paragraph:
‘‘(14) Procedures under which—
‘‘(A)(i) the State shall respond within 5
business days to a request made by another State
to enforce a support order; and
‘‘(ii) the term ‘business day’ means a day
on which State offices are open for regular busi-
ness;
‘‘(B) the State may, by electronic or other
means, transmit to another State a request for
585
assistance in a case involving the enforcement of
a support order, which request—
‘‘(i) shall include such information as
will enable the State to which the request is
transmitted to compare the information
about the case to the information in the
data bases of the State; and
‘‘(ii) shall constitute a certification by
the requesting State—
‘‘(I) of the amount of support
under the order the payment of which
is in arrears; and
‘‘(II) that the requesting State has
complied with all procedural due proc-
ess requirements applicable to the case;
‘‘(C) if the State provides assistance to an-
other State pursuant to this paragraph with re-
spect to a case, neither State shall consider the
case to be transferred to the caseload of such
other State; and
‘‘(D) the State shall maintain records of—
‘‘(i) the number of such requests for as-
sistance received by the State;
586
‘‘(ii) the number of cases for which the
State collected support in response to such
a request; and
‘‘(iii) the amount of such collected sup-
port.’’.
SEC. 424. USE OF FORMS IN INTERSTATE ENFORCEMENT.
(a) PROMULGATION.—Section 452(a) (42 U.S.C.
652(a)) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(9);
(2) by striking the period at the end of para-
graph (10) and inserting ‘‘; and’’; and
(3) by adding at the end the following new para-
graph:
‘‘(11) not later than June 30, 1996, promulgate
forms to be used by States in interstate cases for—
‘‘(A) collection of child support through in-
come withholding;
‘‘(B) imposition of liens; and
‘‘(C) administrative subpoenas.’’.
(b) USE
BY STATES.—Section 454(9) (42 U.S.C.
654(9)) is amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (C);
587
(2) by inserting ‘‘and’’ at the end of subpara-
graph (D); and
(3) by adding at the end the following new sub-
paragraph:
‘‘(E) no later than October 1, 1996, in
using the forms promulgated pursuant to section
452(a)(11) for income withholding, imposition of
liens, and issuance of administrative subpoenas
in interstate child support cases;’’.
SEC. 425. STATE LAWS PROVIDING EXPEDITED PROCE-
DURES.
(a) STATE LAW REQUIREMENTS.—Section 466 (42
U.S.C. 666), as amended by section 414 of this Act, is
amended—
(1) in subsection (a)(2), by striking the 1st sen-
tence and inserting the following: ‘‘Expedited admin-
istrative and judicial procedures (including the proce-
dures specified in subsection (c)) for establishing pa-
ternity and for establishing, modifying, and enforcing
support obligations.’’; and
(2) by inserting after subsection (b) the following
new subsection:
‘‘(c) The procedures specified in this subsection are the
following:
591
‘‘(F) In cases where support is subject to an
assignment in order to comply with a require-
ment imposed pursuant to part A or section
1912, or to a requirement to pay through the
State disbursement unit established pursuant to
section 454B, upon providing notice to obligor
and obligee, to direct the obligor or other payor
to change the payee to the appropriate govern-
ment entity.
‘‘(G) To order income withholding in ac-
cordance with subsections (a)(1) and (b) of sec-
tion 466.
‘‘(H) In cases in which there is a support
arrearage, to secure assets to satisfy the arrear-
age by—
‘‘(i) intercepting or seizing periodic or
lump-sum payments from—
‘‘(I) a State or local agency, in-
cluding unemployment compensation,
workers’ compensation, and other bene-
fits; and
‘‘(II) judgments, settlements, and
lotteries;
‘‘(ii) attaching and seizing assets of the
obligor held in financial institutions;
592
‘‘(iii) attaching public and private re-
tirement funds; and
‘‘(iv) imposing liens in accordance
with subsection (a)(4) and, in appropriate
cases, to force sale of property and distribu-
tion of proceeds.
‘‘(I) For the purpose of securing overdue
support, to increase the amount of monthly sup-
port payments to include amounts for arrear-
ages, subject 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) The expedited procedures required under
subsection (a)(2) shall include the following rules and
authority, applicable with respect to all proceedings
to establish paternity or to establish, modify, or en-
force support orders:
‘‘(A) Procedures under which—
‘‘(i) each party to any paternity or
child support proceeding is required (subject
to privacy safeguards) to file with the tribu-
593
nal and the State case registry upon entry
of an order, and to update as appropriate,
information on location and identity of the
party, including social security number,
residential and mailing addresses, telephone
number, driver’s license number, and name,
address, and name 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 ad-
dress filed with the tribunal pursuant to
clause (i).
‘‘(B) Procedures 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
594
‘‘(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 re-
tain jurisdiction over the parties.’’.
(b) AUTOMATION OF STATE AGENCY FUNCTIONS.—
Section 454A, as added by section 445(a)(2) of this Act and
as amended by sections 411 and 412(c) of this Act, is
amended 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).’’.
Subtitle D—Paternity
Establishment
SEC. 431. 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)(A)(i) Procedures which permit the establish-
ment of the paternity of a child at any time before
the child attains 21 years of age.
595
‘‘(ii) As of August 16, 1984, clause (i) shall also
apply to a child for whom paternity has not been es-
tablished or for whom a paternity action was brought
but dismissed because a statute of limitations of less
than 21 years was then in effect in the State.
‘‘(B)(i) Procedures under which the State is re-
quired, in a contested paternity case, unless otherwise
barred by State law, to require the child and all other
parties (other than individuals found under section
454(28) to have good cause for refusing 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 setting forth
facts establishing a reasonable possibility of the
requisite sexual contact between the parties; or
‘‘(II) denying paternity, and setting forth
facts establishing a reasonable possibility of the
nonexistence of sexual contact between the par-
ties.
‘‘(ii) Procedures which require the State agency
in any case in which the agency orders genetic test-
ing—
596
‘‘(I) to pay costs of such tests, subject to
recoupment (where the State so elects) from the
alleged father if paternity is established; and
‘‘(II) to obtain additional testing in any
case where an original test result is contested,
upon request and advance payment by the con-
testant.
‘‘(C)(i) Procedures for a simple civil process for
voluntarily acknowledging paternity under which the
State must provide that, before a mother and a puta-
tive father can sign an acknowledgment of paternity,
the mother and the putative father must be given no-
tice, orally and in writing, of the alternatives to, the
legal consequences of, and the rights (including, if 1
parent is a minor, any rights afforded due to minor-
ity status) and responsibilities that arise from, sign-
ing the acknowledgment.
‘‘(ii) Such procedures must include a hospital-
based program for the voluntary acknowledgment of
paternity focusing on the period immediately before
or after the birth of a child.
‘‘(iii)(I) Such procedures must require the State
agency responsible for maintaining birth records to
offer voluntary paternity establishment services.
597
‘‘(II)(aa) The Secretary shall prescribe regula-
tions governing voluntary paternity establishment
services offered by hospitals and birth record agencies.
‘‘(bb) The Secretary shall prescribe regulations
specifying the types of other entities that may offer
voluntary paternity establishment services, and gov-
erning the provision of such services, which shall in-
clude a requirement that such an entity must use the
same notice provisions used by, use the same mate-
rials used by, provide the personnel 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 paternity establishment programs of
hospitals and birth record agencies.
‘‘(iv) Such procedures must require the State to
develop and use an affidavit for the voluntary ac-
knowledgment of paternity which includes the mini-
mum requirements of the affidavit developed by the
Secretary under section 452(a)(7) for the voluntary
acknowledgment of paternity, and to give full faith
and credit to such an affidavit signed in any other
State according to its procedures.
‘‘(D)(i) Procedures under which the name of the
father shall be included on the record of birth of the
598
child only if the father and mother have signed an ac-
knowledgment of paternity and under which a signed
acknowledgment of paternity is considered a legal
finding of paternity, subject to the right of any signa-
tory to rescind the acknowledgment within 60 days.
‘‘(ii) Procedures under which, after the 60-day
period referred to in clause (i), a signed acknowledg-
ment 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) Procedures under which judicial or admin-
istrative proceedings are not required or permitted to
ratify an unchallenged acknowledgment of paternity.
‘‘(F) Procedures—
‘‘(i) requiring the admission into evidence,
for purposes of establishing paternity, of the re-
sults of any genetic test that is—
‘‘(I) of a type generally acknowledged
as reliable by accreditation bodies des-
ignated by the Secretary; and
599
‘‘(II) performed by a laboratory ap-
proved by such an accreditation body;
‘‘(ii) requiring an objection to genetic test-
ing results to be made in writing not later than
a specified number of days before any hearing at
which the results may be introduced into evi-
dence (or, at State option, not later than a speci-
fied number of days after receipt of the results);
and
‘‘(iii) making the test results admissible as
evidence of paternity without the need for foun-
dation testimony or other proof of authenticity
or accuracy, unless objection is made.
‘‘(G) Procedures which create a rebuttable or, at
the option of the State, conclusive presumption of pa-
ternity upon genetic testing results indicating a
threshold probability that the alleged father is the fa-
ther of the child.
‘‘(H) Procedures requiring a default order to be
entered in a paternity case upon a showing of service
of process on the defendant and any additional show-
ing required by State law.
‘‘(I) Procedures providing that the parties to an
action to establish paternity are not entitled to a trial
by jury.
600
‘‘(J) Procedures which require that a temporary
order be issued, upon motion by a party, requiring
the provision of child support pending an adminis-
trative or judicial determination of parentage, where
there is clear and convincing evidence of paternity
(on the basis of genetic tests or other evidence).
‘‘(K) Procedures under which bills for preg-
nancy, childbirth, and genetic testing are admissible
as evidence without requiring third-party foundation
testimony, and shall constitute prima facie evidence
of amounts incurred for such services or for testing on
behalf of the child.
‘‘(L) Procedures ensuring that the putative fa-
ther has a reasonable opportunity to initiate a pater-
nity action.
‘‘(M) Procedures under which voluntary ac-
knowledgments and adjudications of paternity by ju-
dicial or administrative processes are filed with the
State registry of birth records for comparison with in-
formation in the State case registry.’’.
(b) NATIONAL PATERNITY ACKNOWLEDGMENT AFFIDA-
VIT.—Section 452(a)(7) (42 U.S.C. 652(a)(7)) is amended
by inserting ‘‘, and develop an affidavit to be used for the
voluntary acknowledgment of paternity which shall include
601
the social security number of each parent’’ before the semi-
colon.
(c) TECHNICAL AMENDMENT.—Section 468 (42 U.S.C.
668) is amended by striking ‘‘a simple civil process for vol-
untarily acknowledging paternity and’’.
SEC. 432. 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. 433. COOPERATION BY APPLICANTS FOR AND RECIPI-
ENTS OF TEMPORARY FAMILY ASSISTANCE.
Section 454 (42 U.S.C. 654), as amended by sections
404(a), 412(a), and 413(a) of this Act, is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(26);
(2) by striking the period at the end of para-
graph (27) and inserting ‘‘; and’’; and
(3) by inserting after paragraph (27) the follow-
ing new paragraph:
‘‘(28) provide that the State agency responsible
for administering the State plan—
602
‘‘(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 is cooperating in good faith
with the State in establishing the paternity of, or
in establishing, modifying, or enforcing a sup-
port 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 father of the
child, subject to such good cause and other excep-
tions as the State may establish and taking into
account the best interests of the child;
‘‘(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 judi-
cial or administrative order; and
‘‘(D) shall promptly notify the individual
and the State agency administering the State
program funded under part A of each such deter-
mination, and if noncooperation is determined,
the basis therefore.’’.
603
Subtitle E—Program
Administration and Funding
SEC. 441. FEDERAL MATCHING PAYMENTS.
(a) INCREASED
BASE
MATCHING
RATE.—Section
455(a)(2) (42 U.S.C. 655(a)(2)) is amended to read as fol-
lows:
‘‘(2) The percent specified in this paragraph for any
quarter is 66 percent.’’.
(b) MAINTENANCE
OF EFFORT.—Section 455 (42
U.S.C. 655) is amended—
(1) in subsection (a)(1), in the matter preceding
subparagraph (A), by striking ‘‘From’’ and inserting
‘‘Subject to subsection (c), from’’; and
(2) by inserting after subsection (b) the following
new subsection:
‘‘(c) Notwithstanding subsection (a), the total expendi-
tures under the State plan approved under this part for
fiscal year 1997 and each succeeding fiscal year, reduced
by the percentage specified in paragraph (2) for the fiscal
year shall not be less than such total expenditures for fiscal
year 1996, reduced by 66 percent.’’.
604
SEC. 442. PERFORMANCE-BASED INCENTIVES AND PEN-
ALTIES.
(a) INCENTIVE ADJUSTMENTS TO FEDERAL MATCHING
RATE.—Section 458 (42 U.S.C. 658) is amended to read
as follows:
‘‘SEC. 458. INCENTIVE ADJUSTMENTS TO MATCHING RATE.
‘‘(a) INCENTIVE ADJUSTMENTS.—
‘‘(1) IN GENERAL.—Beginning with fiscal year
1999, the Secretary shall increase the percent speci-
fied in section 455(a)(2) that applies to payments to
a State under section 455(a)(1)(A) for each quarter
in a fiscal year by a factor reflecting the sum of the
applicable incentive adjustments (if any) determined
in accordance with regulations under this section
with respect to the paternity establishment percentage
of the State for the immediately preceding fiscal year
and with respect to overall performance of the State
in child support enforcement during such preceding
fiscal year.
‘‘(2) STANDARDS.—
‘‘(A) IN
GENERAL.—The Secretary shall
specify in regulations—
‘‘(i) the levels of accomplishment, and
rates of improvement as alternatives to such
levels, which a State must attain to qualify