H. R. 3734—115
under subparagraph (A) or (B) is used only for the purposes
authorized under such subparagraph;’’;
(C) by striking ‘‘and’’ at the end of subparagraph (A);
(D) by redesignating subparagraph (B) as subpara-
graph (C); and
(E) by inserting after subparagraph (A) the following
new subparagraph:
‘‘(B) wage and unemployment compensation 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 Directory of New Hires estab-
lished under section 453(i) of the Social Security Act, and’’.
(3) TO
STATE
GRANT
PROGRAM
UNDER
TITLE
III
OF
THE
SOCIAL SECURITY ACT.—Subsection (h) of section 303 (42 U.S.C.
503) is amended to read as follows:
‘‘(h)(1) The State agency charged with the administration of
the State law shall, on a reimbursable basis—
‘‘(A) disclose quarterly, to the Secretary of Health and
Human Services, wage and claim information, as required
pursuant to section 453(i)(1), contained in the records of such
agency;
‘‘(B) ensure that information provided pursuant to subpara-
graph (A) meets such standards relating to correctness and
verification as the Secretary of Health and Human Services,
with the concurrence of the Secretary of Labor, may find nec-
essary; and
‘‘(C) establish such safeguards as the Secretary of Labor
determines are necessary to insure that information disclosed
under subparagraph (A) is used only for purposes of section
453(i)(1) in carrying out the child support enforcement program
under title IV.
‘‘(2) Whenever the Secretary of Labor, after reasonable notice
and opportunity for hearing to the State agency charged with the
administration of the State law, finds that there is a failure to
comply substantially with the requirements of paragraph (1), the
Secretary of Labor shall notify such State agency that further
payments will not be made to the State until the Secretary of
Labor is satisfied that there is no longer any such failure. Until
the Secretary of Labor is so satisfied, the Secretary shall make
no future certification to the Secretary of the Treasury with respect
to the State.
‘‘(3) For purposes of this subsection—
‘‘(A) the term ‘wage information’ means information regard-
ing wages paid to an individual, the social security account
number of such individual, and the name, address, State, and
the Federal employer identification number of the employer
paying such wages to such individual; and
‘‘(B) the term ‘claim information’ means information regard-
ing whether an individual is receiving, has received, or has
made application for, unemployment compensation, the amount
of any such compensation being received (or to be received
by such individual), and the individual’s current (or most
recent) home address.’’.
(4) DISCLOSURE OF CERTAIN INFORMATION TO AGENTS OF
CHILD SUPPORT ENFORCEMENT AGENCIES.—
H. R. 3734—116
(A) IN GENERAL.—Paragraph (6) of section 6103(l) of
the Internal Revenue Code of 1986 (relating to disclosure
of return information to Federal, State, and local child
support enforcement agencies) is amended by redesignating
subparagraph (B) as subparagraph (C) and by inserting
after subparagraph (A) the following new subparagraph:
‘‘(B) DISCLOSURE TO CERTAIN AGENTS.—The following
information disclosed to any child support enforcement
agency under subparagraph (A) with respect to any individ-
ual with respect to whom child support obligations are
sought to be established or enforced may be disclosed by
such agency to any agent of such agency which is under
contract with such agency to carry out the purposes
described in subparagraph (C):
‘‘(i) The address and social security account num-
ber (or numbers) of such individual.
‘‘(ii) The amount of any reduction under section
6402(c) (relating to offset of past-due support against
overpayments) in any overpayment otherwise payable
to such individual.’’.
(B) CONFORMING AMENDMENTS.—
(i) Paragraph (3) of section 6103(a) of such Code
is amended by striking ‘‘(l)(12)’’ and inserting ‘‘para-
graph (6) or (12) of subsection (l)’’.
(ii) Subparagraph (C) of section 6103(l)(6) of such
Code, as redesignated by subsection (a), is amended
to read as follows:
‘‘(C) RESTRICTION ON DISCLOSURE.—Information may
be disclosed under this paragraph only for purposes of,
and to the extent necessary in, establishing and collecting
child support obligations from, and locating, individuals
owing such obligations.’’.
(iii) The material following subparagraph (F) of
section 6103(p)(4) of such Code is amended by striking
‘‘subsection (l)(12)(B)’’ and inserting ‘‘paragraph (6)(A)
or (12)(B) of subsection (l)’’.
(h) REQUIREMENT FOR COOPERATION.—The Secretary of Labor
and the Secretary of Health and Human Services shall work jointly
to develop cost-effective and efficient methods of accessing the
information in the various State directories of new hires and the
National Directory of New Hires as established pursuant to the
amendments made by this subtitle. In developing these methods
the Secretaries shall take into account the impact, including costs,
on the States, and shall also consider the need to insure the proper
and authorized use of wage record information.
SEC. 317. COLLECTION AND USE OF SOCIAL SECURITY NUMBERS FOR
USE IN CHILD SUPPORT ENFORCEMENT.
Section 466(a) (42 U.S.C. 666(a)), as amended by section 315
of this Act, is amended by inserting after paragraph (12) the follow-
ing new paragraph:
‘‘(13) RECORDING OF SOCIAL SECURITY NUMBERS IN CERTAIN
FAMILY MATTERS.—Procedures requiring that the social security
number of—
‘‘(A) any applicant for a professional license, commer-
cial driver’s license, occupational license, or marriage
license be recorded on the application;
H. R. 3734—117
‘‘(B) any individual who is subject to a divorce decree,
support order, or paternity determination or acknowledg-
ment be placed in the records relating to the matter; and
‘‘(C) any individual who has died be placed in the
records relating to the death and be recorded on the death
certificate.
For purposes of subparagraph (A), if a State allows the use
of a number other than the social security number, the State
shall so advise any applicants.’’.
Subtitle C—Streamlining and Uniformity
of Procedures
SEC. 321. ADOPTION OF UNIFORM STATE LAWS.
Section 466 (42 U.S.C. 666) is amended by adding at the end
the following new subsection:
‘‘(f) UNIFORM INTERSTATE FAMILY SUPPORT ACT.—In order to
satisfy section 454(20)(A), on and after January 1, 1998, each State
must have in effect the Uniform Interstate Family Support Act,
as approved by the American Bar Association on February 9, 1993,
together with any amendments officially adopted before January
1, 1998 by the National Conference of Commissioners on Uniform
State Laws.’’.
SEC. 322. 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 undesig-
nated paragraph the following:
‘‘ ‘child’s home State’ means the State in which a child lived
with a parent or a person acting as parent for at least 6 consecutive
months immediately preceding 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 absence 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 subsections (e),
(f), and (g)’’ after ‘‘located’’;
(5) in subsection (d)—
(A) by inserting ‘‘individual’’ before ‘‘contestant’’; and
(B) by striking ‘‘subsection (e)’’ and inserting ‘‘sub-
sections (e) and (f)’’;
(6) in subsection (e), by striking ‘‘make a modification 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)—
(A) by inserting ‘‘individual’’ before ‘‘contestant’’ 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,
H. R. 3734—118
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 following new
subsection:
‘‘(f) RECOGNITION OF CHILD SUPPORT ORDERS.—If 1 or more
child support orders have been issued 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 juris-
diction 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 support orders
for the same obligor and child, and only 1 of the courts would
have continuing, exclusive jurisdiction under this section, the
order of that court must be recognized.
‘‘(3) If 2 or more courts have issued child support 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 recently
issued must be recognized.
‘‘(4) If 2 or more courts have issued child support orders
for the same obligor and child, and none of the courts would
have continuing, exclusive jurisdiction under this section, a
court may issue a child support order, which must be recog-
nized.
‘‘(5) The court that has issued an order recognized under
this subsection is the court having continuing, exclusive juris-
diction.’’;
(11) in subsection (g) (as so redesignated)—
(A) by striking ‘‘PRIOR’’ and inserting ‘‘MODIFIED’’; and
(B) by striking ‘‘subsection (e)’’ and inserting ‘‘sub-
sections (e) and (f)’’;
(12) in subsection (h) (as so redesignated)—
(A) in paragraph (2), by inserting ‘‘including the dura-
tion of current payments and other obligations of support’’
before the comma; and
(B) in paragraph (3), by inserting ‘‘arrears under’’ after
‘‘enforce’’; and
(13) by adding at the end the following new subsection:
‘‘(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 issued in another State shall register
that order in a State with jurisdiction over the nonmovant for
the purpose of modification.’’.
SEC. 323. ADMINISTRATIVE ENFORCEMENT IN INTERSTATE CASES.
Section 466(a) (42 U.S.C. 666(a)), as amended by sections 315
and 317 of this Act, is amended by inserting after paragraph (13)
the following new paragraph:
‘‘(14) 
ADMINISTRATIVE
ENFORCEMENT
IN
INTERSTATE
CASES.—Procedures under which—
H. R. 3734—119
‘‘(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 business;
‘‘(B) the State may, by electronic or other means, trans-
mit to another State a request for 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 com-
pare the information about the case to the information
in the data bases of the State; and
‘‘(ii) shall constitute a certification by the re-
questing 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 process requirements
applicable to the case;
‘‘(C) if the State provides assistance to another State
pursuant to this paragraph with respect to a case, neither
State shall consider the case to be transferred to the case-
load of such other State; and
‘‘(D) the State shall maintain records of—
‘‘(i) the number of such requests for assistance
received by the State;
‘‘(ii) the number of cases for which the State col-
lected support in response to such a request; and
‘‘(iii) the amount of such collected support.’’.
SEC. 324. 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 paragraph (10)
(as amended by section 346(a) of this Act) and inserting ‘‘;
and’’; and
(3) by adding at the end the following new paragraph:
‘‘(11) not later than October 1, 1996, after consulting with
the State directors of programs under this part, promulgate
forms to be used by States in interstate cases for—
‘‘(A) collection of child support through income
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 subparagraph (C);
(2) by inserting ‘‘and’’ at the end of subparagraph
(D); and
(3) by adding at the end the following new subparagraph:
‘‘(E) not later than March 1, 1997, in using the forms
promulgated pursuant to section 452(a)(11) for income
withholding, imposition of liens, and issuance of adminis-
trative subpoenas in interstate child support cases;’’.
H. R. 3734—120
SEC. 325. STATE LAWS PROVIDING EXPEDITED PROCEDURES.
(a) STATE LAW REQUIREMENTS.—Section 466 (42 U.S.C. 666),
as amended by section 314 of this Act, is amended—
(1) in subsection (a)(2), by striking the first sentence and
inserting the following: ‘‘Expedited administrative and judicial
procedures (including the procedures specified in subsection
(c)) for establishing paternity and for establishing, modifying,
and enforcing support obligations.’’; and
(2) by inserting after subsection (b) the following new sub-
section:
‘‘(c) EXPEDITED PROCEDURES.—The procedures specified in this
subsection are the following:
‘‘(1) ADMINISTRATIVE ACTION BY STATE AGENCY.—Procedures
which give the State agency the authority to take the following
actions relating to establishment of paternity or to establish-
ment, modification, or enforcement of support orders, without
the necessity of obtaining an order from any other judicial
or administrative tribunal, and to recognize and enforce the
authority of State agencies of other States to take the following
actions:
‘‘(A) GENETIC TESTING.—To order genetic testing for
the purpose of paternity establishment as provided in sec-
tion 466(a)(5).
‘‘(B) FINANCIAL OR OTHER INFORMATION.—To subpoena
any financial or other information needed to establish,
modify, or enforce a support order, and to impose penalties
for failure to respond to such a subpoena.
‘‘(C) RESPONSE TO STATE AGENCY REQUEST.—To require
all entities in the State (including for-profit, nonprofit,
and governmental employers) to provide promptly, in
response to a request by the State agency of that or any
other State administering a program under this part,
information on the employment, compensation, and benefits
of any individual employed by such entity as an employee
or contractor, and to sanction failure to respond to any
such request.
‘‘(D) ACCESS TO INFORMATION CONTAINED IN CERTAIN
RECORDS.—To obtain access, subject to safeguards on pri-
vacy and information security, and subject to the nonliabil-
ity of entities that afford such access under this subpara-
graph, to information contained in the following records
(including automated access, in the case of records main-
tained in automated data bases):
‘‘(i) Records of other State and local government
agencies, including—
‘‘(I) vital statistics (including records of mar-
riage, birth, and divorce);
‘‘(II) State and local tax and revenue records
(including 
information 
on 
residence 
address,
employer, income and assets);
‘‘(III) records concerning real and titled per-
sonal property;
‘‘(IV) records of occupational and professional
licenses, and records concerning the ownership and
control of corporations, partnerships, and other
business entities;
‘‘(V) employment security records;
H. R. 3734—121
‘‘(VI) records of agencies administering public
assistance programs;
‘‘(VII) records of the motor vehicle depart-
ment; and
‘‘(VIII) corrections records.
‘‘(ii) Certain records held by private entities with
respect to individuals who owe or are owed support
(or against or with respect to whom a support obliga-
tion is sought), consisting of—
‘‘(I) the names and addresses of such indi-
viduals and the names and addresses of the
employers of such individuals, as appearing in cus-
tomer records of public utilities and cable tele-
vision companies, pursuant to an administrative
subpoena authorized by subparagraph (B); and
‘‘(II) information (including information on
assets and liabilities) on such individuals held by
financial institutions.
‘‘(E) CHANGE
IN
PAYEE.—In cases in which support
is subject to an assignment in order to comply with a
requirement 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 government
entity.
‘‘(F) INCOME WITHHOLDING.—To order income withhold-
ing in accordance with subsections (a)(1)(A) and (b) of sec-
tion 466.
‘‘(G) SECURING
ASSETS.—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, including
unemployment compensation, workers’ compensa-
tion, and other benefits; and
‘‘(II) judgments, settlements, and lotteries;
‘‘(ii) attaching and seizing assets of the obligor
held in financial institutions;
‘‘(iii) attaching public and private retirement
funds; and
‘‘(iv) imposing liens in accordance with subsection
(a)(4) and, in appropriate cases, to force sale of property
and distribution of proceeds.
‘‘(H) INCREASE MONTHLY PAYMENTS.—For the purpose
of securing overdue support, to increase the amount of
monthly support 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 safeguards,
including (as appropriate) requirements for notice, opportunity
to contest the action, and opportunity 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 authority, applicable with respect to all
H. R. 3734—122
proceedings to establish paternity or to establish, modify, or
enforce support orders:
‘‘(A) 
LOCATOR
INFORMATION; 
PRESUMPTIONS
CON-
CERNING NOTICE.—Procedures under which—
‘‘(i) each party to any paternity or child support
proceeding is required (subject to privacy safeguards)
to file with the tribunal 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 mail-
ing addresses, telephone number, driver’s license num-
ber, 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 proc-
ess 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.—Procedures 
under
which—
‘‘(i) the State agency and any administrative or
judicial tribunal with authority to hear child support
and paternity cases exerts statewide jurisdiction over
the parties; and
‘‘(ii) in a State in which orders are issued by courts
or administrative tribunals, a case may be transferred
between local jurisdictions 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.—Notwithstanding sub-
section (d) of section 514 of the Employee Retirement Income
Security Act of 1974 (relating to effect on other laws), nothing
in this subsection 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 (relat-
ing to qualified medical child support orders) if the reference
in such section 206(d)(3) to a domestic relations order and
the reference in such section 609(a) to a medical child support
order were a reference to a support order referred to in para-
graphs (1) and (2) relating to the same matters, respectively.’’.
(b) AUTOMATION OF STATE AGENCY FUNCTIONS.—Section 454A,
as added by section 344(a)(2) and as amended by sections 311
and 312(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
H. R. 3734—123
extent feasible, to implement the expedited administrative proce-
dures required by section 466(c).’’.
Subtitle D—Paternity Establishment
SEC. 331. STATE LAWS CONCERNING PATERNITY ESTABLISHMENT.
(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
ESTAB-
LISHMENT.—
‘‘(A) ESTABLISHMENT PROCESS AVAILABLE FROM BIRTH
UNTIL AGE 18.—
‘‘(i) Procedures which permit the establishment 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 paternity has not been
established or for whom a paternity action was brought
but dismissed 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 CON-
TESTED CASES.—Procedures under which the State is
required, in a contested paternity case (unless other-
wise barred by State law) to require the child and
all other parties (other than individuals found under
section 454(29) to have good cause and other exceptions
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 req-
uisite sexual contact between the parties; or
‘‘(II) denying paternity, and setting forth facts
establishing a reasonable possibility of the non-
existence of sexual contact between the parties.
‘‘(ii) OTHER
REQUIREMENTS.—Procedures which
require the State agency, in any case in which the
agency orders genetic testing—
‘‘(I) to pay costs of such tests, subject to
recoupment (if the State so elects) from the alleged
father if paternity 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 ACKNOWLEDGMENT.—
‘‘(i) SIMPLE CIVIL PROCESS.—Procedures for a sim-
ple civil process for voluntarily acknowledging pater-
nity under which the State must provide that, before
a mother and a putative father can sign an acknowledg-
ment of paternity, the mother and the putative father
must be given notice, 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 minority status) and responsibilities
that arise from, signing the acknowledgment.
H. R. 3734—124
‘‘(ii) HOSPITAL-BASED PROGRAM.—Such procedures
must include a hospital-based program for the vol-
untary acknowledgment of paternity focusing on the
period immediately before or after the birth of a child.
‘‘(iii) PATERNITY ESTABLISHMENT SERVICES.—
‘‘(I) STATE-OFFERED
SERVICES.—Such proce-
dures must require the State agency responsible
for maintaining birth records to offer voluntary
paternity establishment services.
‘‘(II) REGULATIONS.—
‘‘(aa) SERVICES OFFERED BY HOSPITALS AND
BIRTH RECORD AGENCIES.—The Secretary shall
prescribe regulations governing voluntary
paternity establishment services offered by
hospitals and birth record agencies.
‘‘(bb) 
SERVICES
OFFERED
BY
OTHER
ENTITIES.—The Secretary shall prescribe regu-
lations specifying the types of other entities
that may offer voluntary paternity establish-
ment services, and governing the provision of
such services, which shall include a require-
ment 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) 
USE
OF
PATERNITY
ACKNOWLEDGMENT
AFFIDAVIT.—Such procedures must require the State
to develop and use an affidavit for the voluntary
acknowledgment of paternity which includes the mini-
mum requirements of the affidavit specified 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) 
STATUS
OF
SIGNED
PATERNITY
ACKNOW-
LEDGMENT.—
‘‘(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 vol-
untary 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 admission of paternity
H. R. 3734—125
by the father and any other additional showing
required by State law.
‘‘(ii) LEGAL
FINDING
OF
PATERNITY.—Procedures
under which a signed voluntary acknowledgment of
paternity is considered a legal finding of paternity,
subject to the right of any signatory to rescind the
acknowledgment within the earlier of—
‘‘(I) 60 days; or
‘‘(II) the date of an administrative 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 vol-
untary acknowledgment 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 sus-
pended during the challenge, except for good cause
shown.
‘‘(E) BAR
ON
ACKNOWLEDGMENT
RATIFICATION
PRO-
CEEDINGS.—Procedures under which judicial or administra-
tive proceedings are not required or permitted to ratify
an unchallenged acknowledgment of paternity.
‘‘(F) ADMISSIBILITY
OF
GENETIC
TESTING
RESULTS.—
Procedures—
‘‘(i) requiring the admission into evidence, for pur-
poses of establishing paternity, of the results of any
genetic test that is—
‘‘(I) of a type generally acknowledged as reli-
able by accreditation bodies designated by the Sec-
retary; 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 before 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 admissible as evi-
dence 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 rebuttable or, at the option
of the State, conclusive presumption of paternity upon
genetic testing results indicating a threshold probability
that the alleged father is the father of the child.
‘‘(H) DEFAULT ORDERS.—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
showing required by State law.
H. R. 3734—126
‘‘(I) NO RIGHT TO JURY TRIAL.—Procedures 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 temporary 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 evidence of paternity (on
the basis of genetic tests or other evidence).
‘‘(K) PROOF
OF
CERTAIN
SUPPORT
AND
PATERNITY
ESTABLISHMENT COSTS.—Procedures under which bills for
pregnancy, childbirth, and genetic testing are admissible
as evidence without requiring third-party foundation testi-
mony, and shall constitute prima facie evidence 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 oppor-
tunity to initiate a paternity 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 comparison
with information in the State case registry.’’.
(b) NATIONAL PATERNITY ACKNOWLEDGMENT AFFIDAVIT.—Sec-
tion 452(a)(7) (42 U.S.C. 652(a)(7)) is amended by inserting ‘‘, and
specify the minimum requirements of an affidavit to be used for
the voluntary acknowledgment of paternity which shall include
the Social Security 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 acknowl-
edging paternity and’’.
SEC. 332. OUTREACH FOR VOLUNTARY PATERNITY ESTABLISHMENT.
Section 454(23) (42 U.S.C. 654(23)) is amended by inserting
‘‘and will publicize the availability and encourage the use of proce-
dures for voluntary establishment of paternity and child support
by means the State deems appropriate’’ before the semicolon.
SEC. 333. COOPERATION BY APPLICANTS FOR AND RECIPIENTS OF
PART A ASSISTANCE.
Section 454 (42 U.S.C. 654), as amended by sections 301(b),
303(a), 312(a), and 313(a) of this Act, is amended—
(1) by striking ‘‘and’’ at the end of paragraph (27);
(2) by striking the period at the end of paragraph (28)
and inserting ‘‘; and’’; and
(3) by inserting after paragraph (28) the following new
paragraph:
‘‘(29) provide that the State agency responsible for admin-
istering the State plan—
‘‘(A) shall make the determination (and redetermina-
tion at appropriate intervals) as to whether an individual
who has applied for or is receiving assistance under the
State program funded under part A of this title or the
H. R. 3734—127
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 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 administer-
ing 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 judicial 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 individual to sign an acknowledgment or
otherwise relinquish the right to genetic tests as a condition
of cooperation and eligibility for assistance under the State
program funded under part A, or the State program under
title XIX; and
‘‘(E) shall promptly notify the individual, 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 non-
cooperation is determined, the basis therefor.’’.
Subtitle E—Program Administration and
Funding
SEC. 341. PERFORMANCE-BASED INCENTIVES AND PENALTIES.
(a) DEVELOPMENT OF NEW SYSTEM.—The Secretary of Health
and Human Services, in consultation with State directors of pro-
grams under part D of title IV of the Social Security Act, shall
develop a new incentive system to replace, in a revenue neutral
manner, the system under section 458 of such Act. The new system
shall provide additional payments to any State based on such
State’s performance under such a program. Not later than March
1, 1997, 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 SYSTEM.—Section
458 (42 U.S.C. 658) is amended—
(1) in subsection (a), by striking ‘‘aid to families with
dependent children under a State plan approved under part
A of this title’’ and inserting ‘‘assistance 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)—
H. R. 3734—128
(A) by striking ‘‘AFDC collections’’ each place it appears
and inserting ‘‘title IV–A collections’’, 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 inserting ‘‘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 subparagraph (A) the following new
subparagraph:
‘‘(B) for a State with a paternity establishment 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 paternity 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 
establishment
percentage’’ 
and 
inserting 
‘‘IV–D 
paternity
establishment percentage’’; and
(II) by striking ‘‘(or all States, as the case
may be)’’; and
(ii) by striking ‘‘and’’ at the end; and
(B) by redesignating subparagraph (B) as subpara-
graph (C) and by inserting after subparagraph (A) the
following new subparagraph:
‘‘(B) the term ‘statewide paternity establishment percent-
age’ 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 established or
acknowledged during the fiscal year,
bears to the total number of children born out of wedlock
during the preceding fiscal year; and’’.
(4) Section 452(g)(3) (42 U.S.C. 652(g)(3)) is amended—
(A) by striking subparagraph (A) and redesignating
subparagraphs (B) and (C) as subparagraphs (A) and (B),
respectively; and
(B) in subparagraph (A) (as so redesignated), by strik-
ing ‘‘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’’.
H. R. 3734—129
(d) EFFECTIVE DATES.—
(1) INCENTIVE ADJUSTMENTS.—
(A) IN GENERAL.—The system developed under sub-
section (a) and the amendments made by subsection (b)
shall become effective on October 1, 1999, 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 2000.
(2) PENALTY REDUCTIONS.—The amendments made by sub-
section (c) shall become effective with respect to calendar quar-
ters beginning on or after the date of the enactment of
this Act.
SEC. 342. 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 subparagraph (B)
of paragraph (14); and
(3) by inserting after paragraph (14) the following 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 compli-
ance with Federal requirements for expedited procedures,
using such standards and procedures as are required 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 automated data
processing system required by paragraph (16) and
transmitting to the Secretary data and calculations
concerning the levels of accomplishment (and rates of
improvement) with respect to applicable performance
indicators (including paternity establishment percentages)
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 transmitted 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 additional 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—
H. R. 3734—130
‘‘(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 reliabil-
ity of program data) to assess the completeness, reliability,
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;
‘‘(ii) of the adequacy of financial management of the
State program operated under the State plan approved
under this part, including assessments of—
‘‘(I) whether Federal and other funds made avail-
able to carry out the State program are being appro-
priately 
expended, 
and 
are 
properly 
and 
fully
accounted for; and
‘‘(II) whether collections and disbursements of sup-
port payments are carried out correctly and are fully
accounted for; and
‘‘(iii) for such other purposes as the Secretary 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. 343. REQUIRED REPORTING PROCEDURES.
(a) ESTABLISHMENT.—Section 452(a)(5) (42 U.S.C. 652(a)(5)) is
amended by inserting ‘‘, and establish procedures to be followed
by States for collecting and reporting information required to be
provided under this part, and establish uniform definitions (includ-
ing those necessary to enable the measurement of State compliance
with the requirements of this part relating to expedited processes)
to be applied in following such procedures’’ before the semicolon.
(b) STATE PLAN REQUIREMENT.—Section 454 (42 U.S.C. 654),
as amended by sections 301(b), 303(a), 312(a), 313(a), and 333
of this Act, is amended—
(1) by striking ‘‘and’’ at the end of paragraph (28);
(2) by striking the period at the end of paragraph (29)
and inserting ‘‘; and’’; and
(3) by adding after paragraph (29) the following new para-
graph:
‘‘(30) provide that the State shall use the definitions estab-
lished under section 452(a)(5) in collecting and reporting
information as required under this part.’’.
SEC. 344. 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’’;
(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.
H. R. 3734—131
(2) AUTOMATED DATA PROCESSING.—Part D of title IV (42
U.S.C. 651–669) is amended by inserting 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 administering the State program
under this part shall have in operation a single statewide automated
data processing and information retrieval system which has the
capability to perform the tasks specified in this section with the
frequency and in the manner required by or under this part.
‘‘(b) PROGRAM MANAGEMENT.—The automated system required
by this section shall perform such functions as the Secretary may
specify relating to management of the State program under this
part, including—
‘‘(1) controlling and accounting for use of Federal, State,
and local funds in carrying out the program; and
‘‘(2) maintaining the data necessary to meet Federal report-
ing requirements under this part on a timely basis.
‘‘(c) CALCULATION OF PERFORMANCE INDICATORS.—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 perform-
ance with respect to paternity establishment and child
support enforcement in the State; and
‘‘(B) to calculate the paternity establishment percent-
age for the State for each fiscal year; and
‘‘(2) have in place systems controls to ensure the com-
pleteness and reliability of, and ready access to, the data
described in paragraph (1)(A), and the accuracy of the calcula-
tions described in paragraph (1)(B).
‘‘(d) INFORMATION INTEGRITY AND SECURITY.—The State agency
shall have in effect safeguards on the integrity, accuracy, and
completeness of, access to, and use of data in the automated system
required by this section, which shall include the following (in addi-
tion 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 shar-
ing 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 personnel permitted access to
such data.
‘‘(2) SYSTEMS CONTROLS.—Systems controls (such as pass-
words or blocking of fields) to ensure strict adherence to the
policies described in paragraph (1).
‘‘(3) MONITORING OF ACCESS.—Routine monitoring of access
to and use of the automated system, through methods such
as audit trails and feedback mechanisms, to guard against
and promptly identify unauthorized access or use.
‘‘(4) TRAINING
AND
INFORMATION.—Procedures to ensure
that all personnel (including State and local agency staff and
H. R. 3734—132
contractors) who may have access to or be required to use
confidential program data are informed of applicable require-
ments 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 unauthorized access
to, or disclosure or use of, confidential data.’’.
(3) REGULATIONS.—The Secretary of Health and Human
Services shall prescribe final regulations for implementation
of section 454A of the Social Security 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 303(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 retrieval system—
‘‘(A) by October 1, 1997, which meets all require-
ments 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, 2000, which meets all require-
ments of this part enacted on or before the date of the
enactment of the Personal Responsibility and Work Oppor-
tunity 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
344(a)(3) of the Personal Responsibility and Work Oppor-
tunity Reconciliation Act of 1996;’’.
(b) SPECIAL FEDERAL MATCHING RATE FOR DEVELOPMENT 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 inserting ‘‘the per-
cent 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 of so much of the State
expenditures described in paragraph (1)(B) as the Secretary finds
are for a system meeting 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 percentage specified in clause
(ii) of so much of the State expenditures described in paragraph
(1)(B) as the Secretary finds are for a system meeting the require-
ments of sections 454(16) and 454A.
‘‘(ii) The percentage specified in this clause is 80 percent.’’.
(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 aggre-
H. R. 3734—133
gate under section 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 fiscal years 1996 through 2001 shall not
exceed the limitation determined for the State by the Sec-
retary of Health and Human Services in regulations.
(C) ALLOCATION FORMULA.—The regulations referred
to in subparagraph (B) shall prescribe a formula for allocat-
ing the amount specified in subparagraph (A) among States
with plans approved under part D of title IV of the Social
Security Act, which shall take into account—
(i) the relative size of State caseloads under such
part; and
(ii) the level of automation needed to meet the
automated data processing requirements 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. 345. TECHNICAL ASSISTANCE.
(a) FOR TRAINING OF FEDERAL AND STATE STAFF, RESEARCH
AND
DEMONSTRATION
PROGRAMS, 
AND
SPECIAL
PROJECTS
OF
REGIONAL OR NATIONAL SIGNIFICANCE.—Section 452 (42 U.S.C. 652)
is amended by adding at the end the following new subsection:
‘‘(j) Out of any money in the Treasury of the United States
not otherwise appropriated, there is hereby appropriated to the
Secretary for each fiscal year an amount equal to 1 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 third 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 technical 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 remain avail-
able until expended.’’.
(b) OPERATION OF FEDERAL PARENT LOCATOR SERVICE.—Section
453 (42 U.S.C. 653), as amended by section 316 of this Act, is
amended by adding at the end the following new subsection:
‘‘(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 fiscal 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 third calendar
quarter following the end of such preceding fiscal year), to cover
costs incurred by the Secretary for operation of the Federal Parent
H. R. 3734—134
Locator Service under this section, to the extent such costs are
not recovered through user fees.’’.
SEC. 346. REPORTS AND DATA COLLECTION BY THE SECRETARY.
(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 furnished during the
fiscal year to individuals 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 assistance 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 cases’’;
(ii) by striking ‘‘cases where the child was formerly
receiving’’ and inserting ‘‘or formerly received’’;
(iii) by inserting ‘‘or 1912’’ after ‘‘471(a)(17)’’; and
(iv) by inserting ‘‘for’’ before ‘‘all other’’;
(B) in each of clauses (i) and (ii), by striking ‘‘, and
the total amount of such obligations’’;
(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 following new clauses:
‘‘(iv) the total amount of support collected during
such fiscal year and distributed as current support;
‘‘(v) the total amount of support collected during
such fiscal year and distributed 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’’.
(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 standards estab-
lished pursuant to subsections (h) and (i).’’.
H. R. 3734—135
(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.
Subtitle F—Establishment and
Modification of Support Orders
SEC. 351. SIMPLIFIED PROCESS FOR REVIEW AND ADJUSTMENT OF
CHILD SUPPORT ORDERS.
Section 466(a)(10) (42 U.S.C. 666(a)(10)) is amended to read
as follows:
‘‘(10) REVIEW AND ADJUSTMENT OF SUPPORT ORDERS UPON
REQUEST.—
‘‘(A) 3-YEAR CYCLE.—
‘‘(i) IN GENERAL.—Procedures under which every
3 years (or such shorter cycle as the State may deter-
mine), upon the request of either parent, or, if there
is an assignment under part A, upon the request of
the State agency under the State plan or of either
parent, the State shall with respect to a support order
being enforced under this part, taking into account
the best interests of the child involved—
‘‘(I) review and, if appropriate, adjust the order
in accordance with the guidelines established
pursuant to section 467(a) if the amount of the
child support award under the order differs from
the amount that would be awarded in accordance
with the guidelines;
‘‘(II) apply a cost-of-living adjustment to the
order in accordance with a formula developed by
the State; or
‘‘(III) 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 adjustment to the orders
eligible for adjustment under any threshold that
may be established by the State.
‘‘(ii) OPPORTUNITY TO REQUEST REVIEW OF ADJUST-
MENT.—If the State elects to conduct the review under
subclause (II) or (III) of clause (i), procedures which
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 section
467(a).
‘‘(iii) NO
PROOF
OF
CHANGE
IN
CIRCUMSTANCES
NECESSARY
IN
3-YEAR
CYCLE
REVIEW.—Procedures
which provide that any adjustment under clause (i)
shall be made without a requirement for proof or show-
ing of a change in circumstances.
H. R. 3734—136
‘‘(B) PROOF OF SUBSTANTIAL CHANGE IN CIRCUMSTANCES
NECESSARY
IN
REQUEST
FOR
REVIEW
OUTSIDE
3-YEAR
CYCLE.—Procedures under which, in the case of a request
for a review, and if appropriate, an adjustment outside
the 3-year cycle (or such shorter cycle as the State may
determine) under clause (i), the State shall review and,
if the requesting party demonstrates a substantial change
in circumstances, adjust the order in accordance with the
guidelines established pursuant to section 467(a).
‘‘(C) NOTICE OF RIGHT TO REVIEW.—Procedures which
require the State to provide notice not less than once
every 3 years to the parents subject to the order informing
the parents of their right to request the State to review
and, if appropriate, adjust the order pursuant to this para-
graph. The notice may be included in the order.’’.
SEC. 352. 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 following new paragraphs:
‘‘(4) In response to a request by the head of a State or local
child support enforcement agency (or 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 agency
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 pay-
ments;
‘‘(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 obligation 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 confidential, will
be used solely for a purpose described in subparagraph (A),
and will not be used in connection with any other civil, adminis-
trative, or criminal proceeding, or for any other purpose.
‘‘(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. 353. 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 provision 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 enforce-
H. R. 3734—137
ment agency attempting to establish, modify, or enforce a child
support obligation of such individual.
‘‘(b) PROHIBITION
OF
DISCLOSURE
OF
FINANCIAL
RECORD
OBTAINED BY STATE CHILD SUPPORT ENFORCEMENT AGENCY.—A
State child support enforcement agency which obtains a financial
record of an individual from a financial institution pursuant to
subsection (a) may disclose such financial record only for the pur-
pose of, and to the extent necessary in, establishing, modifying,
or enforcing a child support obligation of such individual.
‘‘(c) CIVIL DAMAGES FOR UNAUTHORIZED DISCLOSURE.—
‘‘(1) DISCLOSURE BY STATE OFFICER OR EMPLOYEE.—If any
person knowingly, or by reason of negligence, discloses a finan-
cial record of an individual 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
ERRONEOUS
INTERPRETATION.—No liability shall arise under this subsection
with respect to any disclosure which results from a good faith,
but erroneous, interpretation 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 unauthorized disclosure
of a financial record with respect to which such defend-
ant is found liable; or
‘‘(ii) the sum of—
‘‘(I) the actual damages sustained by the
plaintiff as a result of such unauthorized disclo-
sure; plus
‘‘(II) in the case of a willful disclosure or a
disclosure which is the result of gross negligence,
punitive damages; plus
‘‘(B) the costs (including attorney’s fees) of the action.
‘‘(d) DEFINITIONS.—For purposes of this section—
‘‘(1) FINANCIAL INSTITUTION.—The term ‘financial institu-
tion’ 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 defined 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), including an institution-affiliated
party of such a 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).’’.
H. R. 3734—138
Subtitle G—Enforcement of Support
Orders
SEC. 361. INTERNAL REVENUE SERVICE COLLECTION OF ARREAR-
AGES.
(a) COLLECTION OF FEES.—Section 6305(a) of the Internal Reve-
nue 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 paragraph (4)
and inserting ‘‘, and’’;
(3) by adding at the end the following new paragraph:
‘‘(5) no additional fee may be assessed for adjustments
to an amount previously certified pursuant to such section
452(b) with respect to the same obligor.’’; and
(4) by striking ‘‘Secretary of Health, Education, and Wel-
fare’’ each place it appears and inserting ‘‘Secretary of Health
and Human Services’’.
(b) EFFECTIVE DATE.—The amendments made by this section
shall become effective October 1, 1997.
SEC. 362. AUTHORITY TO COLLECT SUPPORT FROM FEDERAL
EMPLOYEES.
(a) CONSOLIDATION AND STREAMLINING OF AUTHORITIES.—Sec-
tion 459 (42 U.S.C. 659) is amended to read as follows:
‘‘SEC. 459. CONSENT BY THE UNITED STATES TO INCOME WITHHOLD-
ING, GARNISHMENT, AND SIMILAR PROCEEDINGS FOR
ENFORCEMENT OF CHILD SUPPORT AND ALIMONY
OBLIGATIONS.
‘‘(a) CONSENT
TO SUPPORT ENFORCEMENT.—Notwithstanding
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 remunera-
tion for employment) due from, or payable by, the United States
or the District of Columbia (including any agency, subdivision,
or instrumentality thereof) to any individual, including members
of the Armed Forces of the United States, shall be subject, 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 pursuant to subsections (a)(1)
and (b) of section 466 and regulations of the Secretary under such
subsections, and to any other legal process brought, by a State
agency administering a program under a State plan approved under
this part or by an individual obligee, to enforce the legal obligation
of the individual to provide child support or alimony.
‘‘(b) CONSENT TO REQUIREMENTS APPLICABLE TO PRIVATE PER-
SON.—With respect to notice to withhold income pursuant to sub-
section (a)(1) or (b) of section 466, or any other order or process
to enforce support obligations against an individual (if the order
or process contains or is accompanied by sufficient data to permit
prompt identification of the individual and the moneys involved),
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 otherwise provided in this section.