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regardless of the State where the notice
originates.’’;
(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.’’.
(E) 
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
noncustodial parent subject to wage withholding
required by this subsection because of the exist-
ence of such withholding and the obligations or
additional obligations which it imposes upon the
employer; or
‘‘(ii) fails to withhold support from wages
or to pay such amounts to the State disburse-
ment unit in accordance with this subsection.’’.
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(F) 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 without advance notice to
the obligor, including issuing the withholding order
through electronic means.’’.
(b) CONFORMING AMENDMENT.—Section 466(c) (42
U.S.C. 666(c)) is repealed.
SEC. 2315. LOCATOR INFORMATION FROM INTERSTATE
NETWORKS.
Section 466(a) (42 U.S.C. 666(a)) is amended by in-
serting after paragraph (11) the following new paragraph:
‘‘(12) LOCATOR INFORMATION FROM INTERSTATE
NETWORKS.—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.’’.
SEC. 2316. EXPANSION OF THE FEDERAL PARENT LOCATOR
SERVICE.
(a) EXPANDED AUTHORITY TO LOCATE INDIVIDUALS
AND ASSETS.—Section 453 (42 U.S.C. 653) is amended—
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(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 custody or visitation or-
ders—
‘‘(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 custody or visita-
tion 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
‘‘(3) information on the type, status, location,
and amount of any assets of, or debts owed by or to,
any such individual.’’; and
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(2) in subsection (b)—
(A) in the matter preceding paragraph (1),
by striking ‘‘social security’’ and all that follows
through ‘‘absent parent’’ and inserting ‘‘informa-
tion described in subsection (a)’’; and
(B) in the flush paragraph at the end, by
adding the following: ‘‘No information shall be
disclosed to any person if the State has notified
the Secretary that the State has reasonable evi-
dence of domestic violence or child abuse and the
disclosure of such information could be harmful
to the custodial parent or the child of such par-
ent. Information received or transmitted pursu-
ant to this section shall be subject to the safe-
guard provisions contained in section 454(26).’’.
(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 custody or visitation rights’’; and
(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 child custody or
visitation rights, or any agent of such court;’’.
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(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) REIMBURSEMENT FOR REPORTS BY STATE AGEN-
CIES.—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) CONFORMING 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.
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(2) Section 453 (42 U.S.C. 653) is amended in
the heading by adding ‘‘FEDERAL’’ before ‘‘PARENT’’.
(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 subsections:
‘‘(h) FEDERAL CASE REGISTRY OF CHILD SUPPORT
ORDERS.—
‘‘(1) IN GENERAL.—Not later than October 1,
1998, in order to assist States in administering pro-
grams 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 Parent 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 pursuant to section 454A(e), as furnished
(and regularly updated), pursuant to section 454A(f),
by State agencies administering programs under this
part.
‘‘(2) CASE INFORMATION.—The information re-
ferred to in paragraph (1) with respect to a case shall
be such information as the Secretary may specify in
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regulations (including the names, social security
numbers or other uniform identification numbers,
and State case identification numbers) to identify the
individuals who owe or are owed support (or with re-
spect to or on behalf of whom support obligations are
sought to be established), and the State or States
which have the case.
‘‘(i) NATIONAL DIRECTORY OF NEW HIRES.—
‘‘(1) IN GENERAL.—In order to assist 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, not later than October 1, 1997, es-
tablish 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) ENTRY OF DATA.—Information shall be en-
tered into the data base maintained by the National
Directory of New Hires within 2 business days of re-
ceipt pursuant to section 453A(g)(2).
‘‘(3) ADMINISTRATION OF FEDERAL TAX LAWS.—
The Secretary of the Treasury shall have access to the
information in the National Directory of New Hires
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for purposes of administering section 32 of the Inter-
nal 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 em-
ployment in a tax return.
‘‘(4) LIST
OF
MULTISTATE
EMPLOYERS.—The
Secretary shall maintain within the National Direc-
tory of New Hires a list of multistate employers that
report information regarding newly hired employees
pursuant to section 453A(b)(1)(B), and the State
which each such employer has designated to receive
such information.
‘‘(j) INFORMATION COMPARISONS AND OTHER DISCLO-
SURES.—
‘‘(1) VERIFICATION BY SOCIAL SECURITY ADMIN-
ISTRATION.—
‘‘(A) IN
GENERAL.—The Secretary shall
transmit information on individuals and em-
ployers maintained under this section to the So-
cial Security Administration to the extent nec-
essary for verification in accordance with sub-
paragraph (B).
‘‘(B) VERIFICATION
BY
SSA.—The Social
Security Administration shall verify the accu-
racy of, correct, or supply to the extent possible,
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and report to the Secretary, the following infor-
mation supplied by the Secretary pursuant to
subparagraph (A):
‘‘(i) The name, social security number,
and birth date of each such individual.
‘‘(ii) The employer identification num-
ber of each such employer.
‘‘(2) INFORMATION COMPARISONS.—For the pur-
pose of locating individuals in a paternity establish-
ment case or a case involving the establishment,
modification, or enforcement of a support order, the
Secretary shall—
‘‘(A) compare information in the National
Directory of New Hires against information in
the support case abstracts in the Federal Case
Registry of Child Support Orders not less often
than every 2 business days; and
‘‘(B) within 2 business 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) INFORMATION COMPARISONS AND DISCLO-
SURES
OF
INFORMATION
IN
ALL
REGISTRIES
FOR
TITLE IV PROGRAM PURPOSES.—To the extent and
with the frequency that the Secretary determines to be
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effective in assisting States to carry out their respon-
sibilities under programs operated under this part
and programs funded under part A, the Secretary
shall—
‘‘(A) compare the information in each com-
ponent of the Federal Parent Locator Service
maintained under this section against the infor-
mation in each other such component (other than
the comparison required by paragraph (2)), and
report instances in which such a comparison re-
veals a match with respect to an individual to
State agencies operating such programs; and
‘‘(B) disclose information in such registries
to such State agencies.
‘‘(4) PROVISION OF NEW HIRE INFORMATION TO
THE
SOCIAL
SECURITY
ADMINISTRATION.—The Na-
tional Directory of New Hires shall provide the Com-
missioner of Social Security with all information in
the National Directory.
‘‘(5) RESEARCH.—The Secretary may provide
access to information reported by employers pursuant
to section 453A(b) for research purposes found by the
Secretary to be likely to contribute to achieving the
purposes of part A or this part, but without personal
identifiers.
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‘‘(k) FEES.—
‘‘(1) FOR
SSA
VERIFICATION.—The Secretary
shall reimburse the Commissioner of Social Security,
at a rate negotiated between the Secretary and the
Commissioner, for the costs incurred by the Commis-
sioner in performing the verification services de-
scribed in subsection (j).
‘‘(2) FOR
INFORMATION
FROM
STATE
DIREC-
TORIES OF NEW HIRES.—The Secretary shall reim-
burse 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 maintaining such
information).
‘‘(3) FOR INFORMATION FURNISHED TO STATE
AND FEDERAL AGENCIES.—A State or Federal agency
that receives information from the Secretary pursuant
to this section shall reimburse the Secretary for costs
incurred by the Secretary in furnishing the informa-
tion, at rates which the Secretary determines to be
reasonable (which rates shall include payment for the
costs of obtaining, verifying, maintaining, and com-
paring the information).
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‘‘(l) RESTRICTION ON DISCLOSURE AND USE.—Infor-
mation in the Federal Parent Locator Service, and infor-
mation resulting from comparisons using such information,
shall not be used or disclosed except as expressly provided
in this section, subject to section 6103 of the Internal Reve-
nue Code of 1986.
‘‘(m) INFORMATION INTEGRITY AND SECURITY.—The
Secretary shall establish and implement safeguards with re-
spect 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
‘‘(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.
‘‘(n) FEDERAL GOVERNMENT REPORTING.—Each de-
partment, agency, and instrumentality of the United States
shall on a quarterly basis report to the Federal Parent Lo-
cator Service the name and social security number of each
employee and the wages paid to the employee during the
previous quarter, except that such a report shall not be filed
with respect to an employee of a department, agency, or
instrumentality performing intelligence or counterintel-
ligence functions, if the head of such department, agency,
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or instrumentality has determined that filing such a report
could endanger the safety of the employee or compromise
an ongoing investigation or intelligence mission.’’.
(g) CONFORMING AMENDMENTS.—
(1) TO PART D OF TITLE IV OF THE SOCIAL SE-
CURITY ACT.—
(A) 
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;’’.
(B) Section 454(13) (42 U.S.C.654(13)) is
amended by inserting ‘‘and provide that infor-
mation requests by parents who are residents of
other States be treated with the same priority as
requests by parents who are residents of the State
submitting the plan’’ before the semicolon.
(2) TO
FEDERAL
UNEMPLOYMENT
TAX
ACT.—
Section 3304(a)(16) of the Internal Revenue Code of
1986 is amended—
(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
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‘‘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 compensation in-
formation contained in the records of such agency
shall be furnished to the Secretary of Health and
Human Services (in accordance with regulations pro-
mulgated by such Secretary) as necessary for the pur-
poses 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 sec-
tion 303 (42 U.S.C. 503) is amended to read as fol-
lows:
‘‘(h)(1) The State agency charged with the administra-
tion of the State law shall, on a reimbursable basis—
‘‘(A) disclose quarterly, to the Secretary of
Health and Human Services, wage and claim infor-
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mation, as required pursuant to section 453(i)(1),
contained in the records of such agency;
‘‘(B) ensure that information provided pursuant
to subparagraph (A) meets such standards relating to
correctness and verification as the Secretary of Health
and Human Services, with the concurrence of the Sec-
retary of Labor, may find necessary; and
‘‘(C) establish such safeguards as the Secretary of
Labor determines are necessary to insure that infor-
mation 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 require-
ments 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—
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‘‘(A) the term ‘wage information’ means infor-
mation regarding wages paid to an individual, the
social security account number of such individual,
and the name, address, State, and the Federal em-
ployer identification number of the employer paying
such wages to such individual; and
‘‘(B) the term ‘claim information’ means infor-
mation regarding whether an individual is receiving,
has received, or has made application for, unemploy-
ment compensation, the amount of any such com-
pensation being received (or to be received by such in-
dividual), and the individual’s current (or most re-
cent) home address.’’.
(4) DISCLOSURE OF CERTAIN INFORMATION TO
AGENTS
OF
CHILD
SUPPORT
ENFORCEMENT
AGEN-
CIES.—
(A) IN GENERAL.—Paragraph (6) of section
6103(l) of the Internal Revenue Code of 1986 (re-
lating to disclosure of return information to Fed-
eral, State, and local child support enforcement
agencies) is amended by redesignating subpara-
graph (B) as subparagraph (C) and by inserting
after subparagraph (A) the following new sub-
paragraph:
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HR 3734 EAS
‘‘(B) DISCLOSURE TO CERTAIN AGENTS.—
The following information disclosed to any child
support enforcement agency under subparagraph
(A) with respect to any individual 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 number (or numbers) of such indi-
vidual.
‘‘(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 ‘‘paragraph (6) or (12) of
subsection (l)’’.
(ii) Subparagraph (C) of section
6103(l)(6) of such Code, as redesignated by
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HR 3734 EAS
subsection (a), is amended to read as fol-
lows:
‘‘(C) RESTRICTION ON DISCLOSURE.—Infor-
mation may be disclosed under this paragraph
only for purposes of, and to the extent necessary
in, establishing and collecting child support obli-
gations from, and locating, individuals owing
such obligations.’’.
(iii) The material following subpara-
graph (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 subchapter. 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.
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SEC. 2317. COLLECTION AND USE OF SOCIAL SECURITY
NUMBERS FOR USE IN CHILD SUPPORT EN-
FORCEMENT.
Section 466(a) (42 U.S.C. 666(a)), as amended by sec-
tion 2315 of this Act, is amended by inserting after para-
graph (12) the following new paragraph:
‘‘(13) RECORDING
OF
SOCIAL
SECURITY
NUM-
BERS IN CERTAIN FAMILY MATTERS.—Procedures re-
quiring that the social security number of—
‘‘(A) any applicant for a professional li-
cense, commercial driver’s license, occupational
license, or marriage license be recorded on the
application;
‘‘(B) any individual who is subject to a di-
vorce decree, support order, or paternity deter-
mination or acknowledgment 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 re-
corded 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.’’.
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Subchapter C—Streamlining and Uniformity
of Procedures
SEC. 2321. 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.—
‘‘(1) ENACTMENT AND USE.—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.
‘‘(2) EMPLOYERS
TO
FOLLOW
PROCEDURAL
RULES
OF
STATE
WHERE
EMPLOYEE
WORKS.—The
State law enacted pursuant to paragraph (1) shall
provide that an employer that receives an income
withholding order or notice pursuant to section 501
of the Uniform Interstate Family Support Act follow
the procedural rules that apply with respect to such
order or notice under the laws of the State in which
the obligor works.’’.
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HR 3734 EAS
SEC. 2322. 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:
‘‘ ‘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 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)’’;
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(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)—
(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 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 jurisdiction and enforcement:
‘‘(1) If only 1 court has issued a child support
order, the order of that court must be recognized.
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‘‘(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.
‘‘(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
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(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
(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. 2323. ADMINISTRATIVE ENFORCEMENT IN INTER-
STATE CASES.
Section 466(a) (42 U.S.C. 666(a)), as amended by sec-
tions 2315 and 2317(a) of this Act, is amended by inserting
after paragraph (13) the following new paragraph:
‘‘(14) ADMINISTRATIVE ENFORCEMENT IN INTER-
STATE CASES.—Procedures under which—
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‘‘(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
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-
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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;
‘‘(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. 2324. 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 October 1, 1996, after con-
sulting with the State directors of programs under
this part, promulgate forms to be used by States in
interstate cases for—
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‘‘(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);
(2) by inserting ‘‘and’’ at the end of subpara-
graph (D); and
(3) by adding at the end the following new sub-
paragraph:
‘‘(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 administrative subpoenas
in interstate child support cases;’’.
SEC. 2325. STATE LAWS PROVIDING EXPEDITED PROCE-
DURES.
(a) STATE LAW REQUIREMENTS.—Section 466 (42
U.S.C. 666), as amended by section 2314 of this Act, is
amended—
(1) in subsection (a)(2), by striking the first sen-
tence and inserting the following: ‘‘Expedited admin-
istrative and judicial procedures (including the proce-
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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) EXPEDITED PROCEDURES.—The procedures spec-
ified in this subsection are the following:
‘‘(1) ADMINISTRATIVE ACTION BY STATE AGEN-
CY.—Procedures which give the State agency the au-
thority to take the following actions relating to estab-
lishment of paternity or to establishment, modifica-
tion, or enforcement of support orders, without the ne-
cessity of obtaining an order from any other judicial
or administrative tribunal, and to recognize and en-
force 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 section 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 re-
spond to such a subpoena.
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‘‘(C) RESPONSE
TO
STATE
AGENCY
RE-
QUEST.—To require all entities in the State (in-
cluding 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 sanc-
tion failure to respond to any such request.
‘‘(D) ACCESS TO INFORMATION CONTAINED
IN CERTAIN RECORDS.—To obtain access, subject
to safeguards on privacy and information secu-
rity, and subject to the nonliability of entities
that afford such access under this subparagraph,
to information contained in the following records
(including automated access, in the case of
records maintained in automated data bases):
‘‘(i) Records of other State and local
government agencies, including—
‘‘(I) vital statistics (including
records of marriage, birth, and di-
vorce);
‘‘(II) State and local tax and rev-
enue records (including information on
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residence address, employer, income
and assets);
‘‘(III) records concerning real and
titled personal property;
‘‘(IV) records of occupational and
professional licenses, and records con-
cerning the ownership and control of
corporations, partnerships, and other
business entities;
‘‘(V) employment security records;
‘‘(VI) records of agencies admin-
istering public assistance programs;
‘‘(VII) records of the motor vehicle
department; 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 re-
spect to whom a support obligation is
sought), consisting of—
‘‘(I) the names and addresses of
such individuals and the names and
addresses of the employers of such indi-
viduals, as appearing in customer
records of public utilities and cable tel-
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evision companies, pursuant to an ad-
ministrative subpoena authorized by
subparagraph (B); and
‘‘(II) information (including in-
formation on assets and liabilities) on
such individuals held by financial in-
stitutions.
‘‘(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 estab-
lished pursuant to section 454B, upon providing
notice to obligor and obligee, to direct the obligor
or other payor to change the payee to the appro-
priate government entity.
‘‘(F) INCOME WITHHOLDING.—To order in-
come withholding in accordance with subsections
(a)(1)(A) and (b) of section 466.
‘‘(G) SECURING ASSETS.—In cases in which
there is a support arrearage, to secure assets to
satisfy the arrearage by—
‘‘(i) intercepting or seizing periodic or
lump-sum payments from—
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‘‘(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;
‘‘(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.
‘‘(H) INCREASE MONTHLY PAYMENTS.—For
the purpose of securing overdue support, to in-
crease the amount of monthly support payments
to include amounts for arrearages, 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.
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‘‘(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 proceedings to establish
paternity or to establish, modify, or enforce support
orders:
‘‘(A) LOCATOR
INFORMATION; 
PRESUMP-
TIONS CONCERNING NOTICE.—Procedures under
which—
‘‘(i) each party to any paternity or
child support proceeding is required (subject
to privacy safeguards) to file with the tribu-
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 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
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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) 
STATEWIDE
JURISDICTION.—Proce-
dures under which—
‘‘(i) the State agency and any admin-
istrative or judicial tribunal with authority
to hear child support and paternity cases
exerts statewide jurisdiction over the par-
ties; and
‘‘(ii) in a State in which orders are is-
sued by courts or administrative tribunals,
a case may be transferred between local ju-
risdictions in the State without need for
any additional filing by the petitioner, or
service of process upon the respondent, to re-
tain jurisdiction over the parties.
‘‘(3) COORDINATION
WITH
ERISA.—Notwith-
standing subsection (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, im-
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pair, or supersede subsections (a), (b), and (c) of such
section 514 as it applies with respect to any proce-
dure 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 (re-
lating to qualified domestic relations orders) or the
requirements of section 609(a) of such Act (relating to
qualified medical child support orders) if the reference
in such section 206(d)(3) to a domestic relations order
and the reference in such section 609(a) to a medical
child support order were a reference to a support
order referred to in paragraphs (1) and (2) relating
to the same matters, respectively.’’.
(b) AUTOMATION OF STATE AGENCY FUNCTIONS.—
Section 454A, as added by section 2344(a)(2) and as
amended by sections 2311 and 2312(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).’’.
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Subchapter D—Paternity Establishment
SEC. 2331. STATE LAWS CONCERNING PATERNITY ESTAB-
LISHMENT.
(a) STATE LAWS REQUIRED.—Section 466(a)(5) (42
U.S.C. 666(a)(5)) is amended to read as follows:
‘‘(5) PROCEDURES CONCERNING PATERNITY ES-
TABLISHMENT.—
‘‘(A) ESTABLISHMENT PROCESS AVAILABLE
FROM BIRTH UNTIL AGE 18.—
‘‘(i) Procedures which permit the estab-
lishment of the paternity of a child at any
time before the child attains 18 years of age.
‘‘(ii) As of August 16, 1984, clause (i)
shall also apply to a child for whom pater-
nity has not been established or for whom a
paternity action was brought but 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
CONTESTED
CASES.—Procedures
under which the State is required, in a con-
tested paternity case (unless otherwise
barred by State law) to require the child
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and all other parties (other than individ-
uals 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 set-
ting forth facts establishing a reason-
able possibility of the requisite sexual
contact between the parties; or
‘‘(II) denying paternity, and set-
ting forth facts establishing a reason-
able possibility of the nonexistence of
sexual contact between the parties.
‘‘(ii) OTHER REQUIREMENTS.—Proce-
dures which require the State agency, in
any case in which the agency orders genetic
testing—
‘‘(I) to pay costs of such tests, sub-
ject to recoupment (if the State so
elects) from the alleged father if pater-
nity is established; and
‘‘(II) to obtain additional testing
in any case if an original test result is
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contested, upon request and advance
payment by the contestant.
‘‘(C) VOLUNTARY PATERNITY ACKNOWLEDG-
MENT.—
‘‘(i) SIMPLE
CIVIL
PROCESS.—Proce-
dures for a simple civil process for volun-
tarily acknowledging paternity under which
the State must provide that, before a mother
and a putative father can sign an acknowl-
edgment 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 (in-
cluding, if 1 parent is a minor, any rights
afforded due to minority status) and re-
sponsibilities that arise from, signing the
acknowledgment.
‘‘(ii) 
HOSPITAL-BASED
PROGRAM.—
Such procedures must include a hospital-
based program for the voluntary acknowl-
edgment of paternity focusing on the period
immediately before or after the birth of a
child, unless good cause and other excep-
tions exist which—
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‘‘(I) shall be defined, taking into
account the best interests of the child,
and
‘‘(II) shall be applied in each
case,
by, at the option of the State, the State
agency administering the State program
under part A, this part, title XV, or title
XIX.
‘‘(iii) 
PATERNITY
ESTABLISHMENT
SERVICES.—
‘‘(I) STATE-OFFERED SERVICES.—
Such procedures must require the State
agency responsible for maintaining
birth records to offer voluntary pater-
nity 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.
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‘‘(bb) SERVICES OFFERED BY
OTHER ENTITIES.—The Secretary
shall prescribe regulations specify-
ing the types of other entities that
may offer voluntary paternity es-
tablishment services, and govern-
ing the provision of such services,
which shall include a requirement
that such an entity must use the
same notice provisions used by,
use the same materials used by,
provide the personnel providing
such services with the same train-
ing provided by, and evaluate the
provision of such services in the
same manner as the provision of
such services is evaluated by, vol-
untary paternity establishment
programs of hospitals and birth
record agencies.
‘‘(iv) USE
OF
PATERNITY
ACKNOWL-
EDGMENT
AFFIDAVIT.—Such 
procedures
must require the State to develop and use
an affidavit for the voluntary acknowledg-
ment of paternity which includes the mini-
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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 accord-
ing to its procedures.
‘‘(D) STATUS
OF
SIGNED
PATERNITY
AC-
KNOWLEDGMENT.—
‘‘(i) INCLUSION IN BIRTH RECORDS.—
Procedures under which the name of the fa-
ther shall be included on the record of birth
of the child of unmarried parents only if—
‘‘(I) the father and mother have
signed a voluntary acknowledgment of
paternity; or
‘‘(II) a court or an administrative
agency of competent jurisdiction has
issued an adjudication of paternity.
Nothing in this clause shall preclude a
State agency from obtaining an admission
of paternity from the father for submission
in a judicial or administrative proceeding,
or prohibit the issuance of an order in a ju-
dicial or administrative proceeding which
bases a legal finding of paternity on an ad-
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mission of paternity 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 ac-
knowledgment within the earlier of—
‘‘(I) 60 days; or
‘‘(II) the date of an administra-
tive or judicial proceeding relating to
the child (including a proceeding to es-
tablish a support order) in which the
signatory is a party.
‘‘(iii) 
CONTEST.—Procedures 
under
which, after the 60-day period referred to in
clause (ii), a signed voluntary 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 aris-
ing from the acknowledgment may not be
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suspended during the challenge, except for
good cause shown.
‘‘(E) BAR ON ACKNOWLEDGMENT RATIFICA-
TION
PROCEEDINGS.—Procedures under which
judicial or administrative 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 evi-
dence, for purposes of establishing pater-
nity, of the results of any genetic test that
is—
‘‘(I) of a type generally acknowl-
edged as reliable by accreditation bod-
ies designated by the Secretary; and
‘‘(II) performed by a laboratory
approved by such an accreditation
body;
‘‘(ii) requiring an objection to genetic
testing results to be made in writing not
later than a specified number of days before
any hearing at which the results may be in-
troduced into evidence (or, at State option,
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not later than a specified number of days
after receipt of the results); and
‘‘(iii) making the test results admissi-
ble as evidence of paternity without the need
for foundation testimony or other proof of
authenticity or accuracy, unless objection is
made.
‘‘(G) PRESUMPTION OF PATERNITY IN CER-
TAIN CASES.—Procedures which create a rebutta-
ble or, at the option of the State, conclusive pre-
sumption of paternity upon genetic testing re-
sults indicating a threshold probability that the
alleged father is the father of the child.
‘‘(H) DEFAULT
ORDERS.—Procedures re-
quiring a default order to be entered in a pater-
nity case upon a showing of service of process on
the defendant and any additional showing re-
quired by State law.
‘‘(I) NO RIGHT TO JURY TRIAL.—Procedures
providing that the parties to an action to estab-
lish paternity are not entitled to a trial by jury.
‘‘(J) TEMPORARY SUPPORT ORDER BASED
ON
PROBABLE
PATERNITY
IN
CONTESTED
CASES.—Procedures which require that a tem-
porary order be issued, upon motion by a party,
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requiring the provision of child support pending
an administrative or judicial determination of
parentage, if there is clear and convincing evi-
dence of paternity (on the basis of genetic tests
or other evidence).
‘‘(K) PROOF OF CERTAIN SUPPORT AND PA-
TERNITY
ESTABLISHMENT
COSTS.—Procedures
under which bills for pregnancy, childbirth, and
genetic testing are admissible as evidence with-
out 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) STANDING OF PUTATIVE FATHERS.—
Procedures ensuring that the putative father has
a reasonable opportunity 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 com-
parison with information in the State case reg-
istry.’’.
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(b) NATIONAL PATERNITY ACKNOWLEDGMENT AFFIDA-
VIT.—Section 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 acknowledging paternity and’’.
SEC. 2332. 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. 2333. COOPERATION BY APPLICANTS FOR AND RECIPI-
ENTS OF PART A ASSISTANCE.
Section 454 (42 U.S.C. 654), as amended by sections
2301(b), 2303(a), 2312(a), and 2313(a) of this Act, is
amended—
(1) by striking ‘‘and’’ at the end of paragraph
(27);
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(2) by striking the period at the end of para-
graph (28) and inserting ‘‘; and’’; and
(3) by inserting after paragraph (28) the follow-
ing new paragraph:
‘‘(29) provide that the State agency responsible
for administering the State plan—
‘‘(A) shall make the determination (and re-
determination at appropriate intervals) as to
whether an individual who has applied for or is
receiving assistance under the State program
funded under part A, the State program under
title XV, or the State program under title XIX
is cooperating in good faith with the State in es-
tablishing 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 infor-
mation as the State agency may require with re-
spect to, the noncustodial parent of the child,
subject to good cause and other exceptions
which—
‘‘(i) shall be defined, taking into ac-
count the best interests of the child, and
‘‘(ii) shall be applied in each case,
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by, at the option of the State, the State agency
administering the State program under part A,
this part, title XV, 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 judi-
cial 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 indi-
vidual to sign an acknowledgment or otherwise
relinquish the right to genetic tests as a condi-
tion of cooperation and eligibility for assistance
under the State program funded under part A,
the State program under title XV, or the State
program under title XIX; and
‘‘(E) shall promptly notify the individual
and the State agency administering the State
program funded under part A, the State agency
administering the State program under title XV,
and the State agency administering the State
program under title XIX, of each such deter-
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mination, and if noncooperation is determined,
the basis therefore.’’.
Subchapter E—Program Administration and
Funding
SEC. 2341. PERFORMANCE-BASED INCENTIVES AND PEN-
ALTIES.
(a) DEVELOPMENT OF NEW SYSTEM.—The Secretary
of Health and Human Services, in consultation with State
directors of programs under part D of title IV of the Social
Security Act, shall develop a new incentive system to re-
place, in a revenue neutral manner, the system under sec-
tion 458 of such Act. The new system shall provide addi-
tional payments to any State based on such State’s per-
formance under such a program. Not later than November
1, 1996, the Secretary shall report on the new system to
the Committee on Ways and Means of the House of Rep-
resentatives and the Committee on Finance of the Senate.
(b) CONFORMING AMENDMENTS
TO PRESENT SYS-
TEM.—Section 458 (42 U.S.C. 658) is amended—
(1) in subsection (a), by striking ‘‘aid to 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)’’;
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(3) in subsections (b) and (c)—
(A) by striking ‘‘AFDC collections’’ each
place it appears and inserting ‘‘title IV–A collec-
tions’’, and
(B) by striking ‘‘non-AFDC collections’’
each place it appears and inserting ‘‘non-title
IV–A collections’’; and
(4) in subsection (c), by striking ‘‘combined
AFDC/non-AFDC administrative costs’’ both places it
appears and inserting ‘‘combined title IV–A/non-title
IV–A administrative costs’’.
(c) CALCULATION
OF PATERNITY ESTABLISHMENT
PERCENTAGE.—
(1) 
Section 
452(g)(1)(A) 
(42 
U.S.C.
652(g)(1)(A)) is amended by striking ‘‘75’’ and in-
serting ‘‘90’’.
(2) Section 452(g)(1) (42 U.S.C. 652(g)(1)) is
amended—
(A) by redesignating subparagraphs (B)
through (E) as subparagraphs (C) through (F),
respectively, and by inserting after 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 estab-
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lishment 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 es-
tablishment percentage (as defined in paragraph (2)(B)).’’.
(3) Section 452(g)(2) (42 U.S.C. 652(g)(2)) is
amended—
(A) in subparagraph (A)—
(i) in the matter preceding clause (i)—
(I) by striking ‘‘paternity estab-
lishment percentage’’ and inserting
‘‘IV–D paternity establishment per-
centage’’; and
(II) by striking ‘‘(or all States, as
the case may be)’’; and
(ii) by striking ‘‘and’’ at the end there-
of;
(B) by redesignating subparagraph (B) as
subparagraph (C) and by inserting after sub-
paragraph (A) the following new subparagraph:
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‘‘(B) the term ‘statewide paternity establishment
percentage’ means, with respect to a State for a fiscal
year, the ratio (expressed as a percentage) that the
total number of minor children—
‘‘(i) who have been born out of wedlock, and
‘‘(ii) the paternity of whom has been estab-
lished or acknowledged during the fiscal year,
bears to the total number of children born out of wed-
lock 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 re-
designating subparagraphs (B) and (C) as sub-
paragraphs (A) and (B), respectively; and
(B) in subparagraph (A) (as so redesig-
nated), by striking ‘‘the percentage of children
born out-of-wedlock in a State’’ and inserting
‘‘the percentage of children in a State who are
born out of wedlock or for whom support has not
been established’’.
(d) EFFECTIVE DATES.—
(1) INCENTIVE ADJUSTMENTS.—
(A) IN GENERAL.—The system developed under
subsection (a) and the amendments made by sub-
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section (b) shall become effective on October 1, 1998,
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 be-
fore the date of the enactment of this section, shall be
effective for purposes of incentive payments to States
for fiscal years before fiscal year 1999.
(2) PENALTY
REDUCTIONS.—The amendments
made by subsection (c) shall become effective with re-
spect to calendar quarters beginning on or after the
date of the enactment of this Act.
SEC. 2342. 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 subpara-
graph (B) of paragraph (14); and
(3) by inserting after paragraph (14) the follow-
ing new paragraph:
‘‘(15) provide for—
‘‘(A) a process for annual reviews of and re-
ports to the Secretary on the State program op-
erated under the State plan approved under this
part, including such information as may be nec-
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essary to measure State compliance 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 auto-
mated data processing system required by para-
graph (16) and transmitting to the Secretary
data and calculations concerning the levels of ac-
complishment (and rates of improvement) with
respect to applicable performance indicators (in-
cluding 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 per-
formance 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
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or alternative corrective actions, and technical assist-
ance; and
‘‘(C) conduct audits, in accordance with the Gov-
ernment auditing standards of the Comptroller Gen-
eral of the United States—
‘‘(i) at least once every 3 years (or more fre-
quently, in the case of a State which fails to
meet the requirements of this part concerning
performance standards and reliability of pro-
gram data) to assess the completeness, reliability,
and security of the data and the accuracy of the
reporting systems used in calculating perform-
ance indicators under subsection (g) of this sec-
tion and section 458;
‘‘(ii) of the adequacy of financial manage-
ment of the State program operated under the
State plan approved under this part, including
assessments of—
‘‘(I) whether Federal and other funds
made available to carry out the State pro-
gram are being appropriately expended,
and are properly and fully accounted for;
and
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‘‘(II) whether collections and disburse-
ments of support payments are carried out
correctly and are fully accounted for; and
‘‘(iii) for such other purposes as the Sec-
retary may find necessary;’’.
(c) EFFECTIVE DATE.—The amendments made by this
section shall be effective with respect to calendar quarters
beginning 12 months or more after the date of the enactment
of this Act.
SEC. 2343. REQUIRED REPORTING PROCEDURES.
(a) ESTABLISHMENT.—Section 452(a)(5) (42 U.S.C.
652(a)(5)) is amended by inserting ‘‘, and establish proce-
dures to be followed by States for collecting and reporting
information required to be provided under this part, and
establish uniform definitions (including those necessary to
enable the measurement of State compliance with the re-
quirements of this part relating to expedited processes) to
be applied in following such procedures’’ before the semi-
colon.
(b) STATE PLAN REQUIREMENT.—Section 454 (42
U.S.C. 654), as amended by sections 2301(b), 2303(a),
2312(a), 2313(a), and 2333 of this Act, is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(28);
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(2) by striking the period at the end of para-
graph (29) and inserting ‘‘; and’’; and
(3) by adding after paragraph (29) the following
new paragraph:
‘‘(30) provide that the State shall use the defini-
tions established under section 452(a)(5) in collecting
and reporting information as required under this
part.’’.
SEC. 
2344. 
AUTOMATED 
DATA 
PROCESSING 
REQUIRE-
MENTS.
(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 sys-
tem’’;
(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.
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(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 informa-
tion 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 Fed-
eral, State, and local funds in carrying out the pro-
gram; and
‘‘(2) maintaining the data necessary to meet
Federal reporting requirements under this part on a
timely basis.
‘‘(c) CALCULATION OF PERFORMANCE 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—
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‘‘(1) use the automated system—
‘‘(A) to maintain the requisite data on
State performance with respect to paternity es-
tablishment and child support enforcement in the
State; and
‘‘(B) to calculate the paternity establish-
ment percentage for the State for each fiscal
year; and
‘‘(2) have in place systems controls to ensure the
completeness and reliability of, and ready access to,
the data described in paragraph (1)(A), and the accu-
racy of the calculations 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 addition to such other safe-
guards as the Secretary may specify in regulations):
‘‘(1) POLICIES
RESTRICTING
ACCESS.—Written
policies concerning access to data by State agency
personnel, and sharing of data with other persons,
which—
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‘‘(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 passwords or blocking of fields) to ensure
strict adherence to the policies described in paragraph
(1).
‘‘(3) MONITORING
OF
ACCESS.—Routine mon-
itoring 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 contractors) who may have access to
or be required to use confidential program data are
informed of applicable requirements and penalties
(including those in section 6103 of the Internal Reve-
nue Code of 1986), and are adequately trained in se-
curity procedures.
‘‘(5) PENALTIES.—Administrative penalties (up
to and including dismissal from employment) for un-
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authorized access to, or disclosure or use of, confiden-
tial 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 enact-
ment of this Act.
(4) 
IMPLEMENTATION
TIMETABLE.—Section
454(24) (42 U.S.C. 654(24)), as amended by section
2303(a)(1) of this Act, is amended to read as follows:
‘‘(24) provide that the State will have in effect
an automated data processing and information re-
trieval system—
‘‘(A) by October 1, 1997, which meets all re-
quirements of this part which were enacted on or
before the date of enactment of the Family Sup-
port Act of 1988, and
‘‘(B) by October 1, 2000, which meets all re-
quirements of this part enacted on or before the
date of the enactment of the Personal Respon-
sibility and Work Opportunity Act of 1996, ex-
cept 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
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2344(a)(3) of the Personal Responsibility and
Work Opportunity Act of 1996;’’.
(b) SPECIAL FEDERAL MATCHING RATE FOR DEVEL-
OPMENT COSTS OF AUTOMATED SYSTEMS.—
(1) IN
GENERAL.—Section 455(a) (42 U.S.C.
655(a)) is amended—
(A) in paragraph (1)(B)—
(i) by striking ‘‘90 percent’’ and in-
serting ‘‘the percent specified in paragraph
(3)’’;
(ii) by striking ‘‘so much of’’; and
(iii) by striking ‘‘which the Secretary’’
and all that follows and inserting ‘‘, and’’;
and
(B) by adding at the end the following new
paragraph:
‘‘(3)(A) The Secretary shall pay to each State, for each
quarter in fiscal years 1996 and 1997, 90 percent 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. Notwithstand-
ing the preceding sentence, any payment to a State with
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respect to fiscal year 1997 shall be made in one payment
in fiscal year 1998.
‘‘(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 requirements of sections 454(16)
and 454A.
‘‘(ii) The percentage specified in this clause is 80 per-
cent.’’.
(2) TEMPORARY
LIMITATION
ON
PAYMENTS
UNDER SPECIAL FEDERAL MATCHING RATE.—
(A) IN GENERAL.—The Secretary of Health
and Human Services may not pay more than
$400,000,000 in the aggregate under 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 regula-
tions.
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(C) ALLOCATION
FORMULA.—The regula-
tions referred to in subparagraph (B) shall pre-
scribe a formula for allocating the amount speci-
fied in subparagraph (A) among States with
plans approved under part D of title IV of the
Social Security Act, which shall take into ac-
count—
(i) the relative size of State caseloads
under such part; and
(ii) the level of automation needed to
meet the automated data processing require-
ments 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. 2345. 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 appro-
priated to the Secretary for each fiscal year (beginning with
fiscal year 1998) an amount equal to 1 percent of the total
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amount paid to the Federal Government pursuant to section
457(a) during the immediately preceding fiscal year (as de-
termined on the basis of the most recent reliable data avail-
able to the Secretary as of the end of the 3rd calendar quar-
ter following the end of such preceding fiscal year), to cover
costs incurred by the Secretary for—
‘‘(1) information dissemination and technical as-
sistance to States, training of State and Federal staff,
staffing studies, and related activities needed to im-
prove programs under this part (including technical
assistance concerning State automated systems re-
quired by this part); and
‘‘(2) 
research, 
demonstration, 
and 
special
projects of regional or national significance relating
to the operation of State programs under this part.
The amount appropriated under this subsection shall re-
main available until expended.’’.
(b) OPERATION OF FEDERAL PARENT LOCATOR SERV-
ICE.—Section 453 (42 U.S.C. 653), as amended by section
2316 of this Act, is amended by adding at the end the fol-
lowing 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
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to the Federal Government pursuant to section 457(a) dur-
ing the immediately preceding fiscal year (as determined
on the basis of the most recent reliable data available to
the Secretary as of the end of the 3rd calendar quarter fol-
lowing the end of such preceding fiscal year), to cover costs
incurred by the Secretary for operation of the Federal Par-
ent Locator Service under this section, to the extent such
costs are not recovered through user fees.’’.
SEC. 2346. REPORTS AND DATA COLLECTION BY THE SEC-
RETARY.
(a) ANNUAL REPORT TO CONGRESS.—
(1) 
Section 
452(a)(10)(A) 
(42 
U.S.C.
652(a)(10)(A)) is amended—
(A) by striking ‘‘this part;’’ and inserting
‘‘this part, including—’’; and
(B) by adding at the end the following new
clauses:
‘‘(i) the total amount of child support
payments collected as a result of services
furnished during the fiscal year to individ-
uals receiving services under this part;
‘‘(ii) the cost to the States and to the
Federal Government of so furnishing the
services; and
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‘‘(iii) the number of cases involving
families—
‘‘(I) who became ineligible for as-
sistance under State programs funded
under part A during a month in the
fiscal year; and
‘‘(II) with respect to whom a child
support payment was received in the
month;’’.
(2) 
Section 
452(a)(10)(C) 
(42 
U.S.C.
652(a)(10)(C)) is amended—
(A) in the matter preceding clause (i)—
(i) by striking ‘‘with the data required
under each clause being separately stated
for cases’’ and inserting ‘‘separately stated
for 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 strik-
ing ‘‘, and the total amount of such obligations’’;
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(C) in clause (iii), by striking ‘‘described
in’’ and all that follows and inserting ‘‘in which
support was collected during the fiscal year;’’;
(D) by striking clause (iv); and
(E) by redesignating clause (v) as clause
(vii), and inserting after clause (iii) the follow-
ing new clauses:
‘‘(iv) the total amount of support col-
lected during such fiscal year and distrib-
uted as current support;
‘‘(v) the total amount of support col-
lected during such fiscal year and distrib-
uted as arrearages;
‘‘(vi) the total amount of support due
and unpaid for all fiscal years; and’’.
(3) 
Section 
452(a)(10)(G) 
(42 
U.S.C.
652(a)(10)(G)) is amended by striking ‘‘on the use of
Federal courts and’’.
(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 pe-
riod and inserting ‘‘; and’’; and
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(C) by inserting after subparagraph (I) the
following new subparagraph:
‘‘(J) compliance, by State, with the stand-
ards established pursuant to subsections (h) and
(i).’’.
(5) Section 452(a)(10) (42 U.S.C. 652(a)(10)) is
amended by striking all that follows subparagraph
(J), as added by paragraph (4).
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall be effective with respect to fiscal year 1997
and succeeding fiscal years.
Subchapter F—Establishment and
Modification of Support Orders
SEC. 2351. SIMPLIFIED PROCESS FOR REVIEW AND ADJUST-
MENT 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.—Procedures under which
the State shall review and adjust each support order
being enforced under this part if there is an assign-
ment under part A or upon the request of either par-
ent, and may review and adjust any other support
order being enforced under this part. Such procedures
shall provide the following:
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‘‘(A) IN GENERAL.—
‘‘(i) 3-YEAR
CYCLE.—Except as pro-
vided in subparagraphs (B) and (C), the
State shall review and, as appropriate, ad-
just the support order every 3 years, taking
into account the best interests of the child
involved.
‘‘(ii) METHODS OF ADJUSTMENT.—The
State may elect to review and, if appro-
priate, adjust an order pursuant to clause
(i) by—
‘‘(I) reviewing and, if appro-
priate, adjusting the order in accord-
ance with the guidelines established
pursuant to section 467(a) if the
amount of the child support award
under the order differs from the
amount that would be awarded in ac-
cordance with the guidelines; or
‘‘(II) applying a cost-of-living ad-
justment to the order in accordance
with a formula developed by the State
and permit either party to contest the
adjustment, within 30 days after the
date of the notice of the adjustment, by
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making a request for review and, if ap-
propriate, adjustment of the order in
accordance with the child support
guidelines established pursuant to sec-
tion 467(a).
‘‘(iii) NO PROOF OF CHANGE IN CIR-
CUMSTANCES NECESSARY.—Any adjustment
under this subparagraph (A) shall be made
without a requirement for proof or showing
of a change in circumstances.
‘‘(B) AUTOMATED
METHOD.—The State
may use automated methods (including auto-
mated comparisons with wage or State income
tax data) to identify orders eligible for review,
conduct the review, identify orders eligible for
adjustment, and apply the appropriate adjust-
ment to the orders eligible for adjustment under
the threshold established by the State.
‘‘(C) REQUEST UPON SUBSTANTIAL CHANGE
IN CIRCUMSTANCES.—The State shall, at the re-
quest of either parent subject to such an order or
of any State child support enforcement agency,
review and, if appropriate, adjust the order in
accordance with the guidelines established pursu-
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ant to section 467(a) based upon a substantial
change in the circumstances of either parent.
‘‘(D) NOTICE OF RIGHT TO REVIEW.—The
State shall provide notice not less than once
every 3 years to the parents subject to such an
order informing them of their right to request the
State to review and, if appropriate, adjust the
order pursuant to this paragraph. The notice
may be included in the order.’’.
SEC. 2352. FURNISHING CONSUMER REPORTS FOR CERTAIN
PURPOSES RELATING TO CHILD SUPPORT.
Section 604 of the Fair Credit Reporting Act (15
U.S.C. 1681b) is amended by adding at the end the follow-
ing new paragraphs:
‘‘(4) In response to a request by the head of a State
or local child support enforcement agency (or 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 pur-
pose of establishing an individual’s capacity to make
child support payments or determining the appro-
priate level of such payments;
‘‘(B) the paternity of the consumer for the child
to which the obligation relates has been established or
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acknowledged by the consumer in accordance with
State laws under which the obligation arises (if re-
quired 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 ad-
dress of the consumer, that the report will be re-
quested; and
‘‘(D) the consumer report will be kept confiden-
tial, will be used solely for a purpose described in
subparagraph (A), and will not be used in connection
with any other civil, administrative, or criminal pro-
ceeding, 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. 2353. 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:
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‘‘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 provi-
sion of Federal or State law, a financial institution shall
not be liable under any Federal or State law to any person
for disclosing any financial record of an individual to a
State child support enforcement agency attempting to estab-
lish, modify, or enforce a child support obligation of such
individual.
‘‘(b) PROHIBITION
OF DISCLOSURE
OF FINANCIAL
RECORD OBTAINED BY STATE CHILD SUPPORT ENFORCE-
MENT AGENCY.—A State child support enforcement agency
which obtains a financial record of an individual from a
financial institution pursuant to subsection (a) may dis-
close such financial record only for the purpose of, and to
the extent necessary in, establishing, modifying, or enforc-
ing a child support obligation of such individual.
‘‘(c) CIVIL DAMAGES FOR UNAUTHORIZED DISCLO-
SURE.—
‘‘(1) DISCLOSURE BY STATE OFFICER OR EM-
PLOYEE.—If any person knowingly, or by reason of
negligence, discloses a financial record of an individ-
ual in violation of subsection (b), such individual
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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 ERRO-
NEOUS
INTERPRETATION.—No liability shall arise
under this subsection with respect to any disclosure
which results from a good faith, but erroneous, inter-
pretation of subsection (b).
‘‘(3) DAMAGES.—In any action brought under
paragraph (1), upon a finding of liability on the part
of the defendant, the defendant shall be liable to the
plaintiff in an amount equal to the sum of—
‘‘(A) the greater of—
‘‘(i) $1,000 for each act of unauthor-
ized disclosure of a financial record with re-
spect to which such defendant is found lia-
ble; or
‘‘(ii) the sum of—
‘‘(I) the actual damages sustained
by the plaintiff as a result of such un-
authorized disclosure; plus
‘‘(II) in the case of a willful dis-
closure or a disclosure which is the re-
sult of gross negligence, punitive dam-
ages; plus
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‘‘(B) the costs (including attorney’s fees) of
the action.
‘‘(d) DEFINITIONS.—For purposes of this section—
‘‘(1) FINANCIAL INSTITUTION.—The term ‘finan-
cial institution’ means—
‘‘(A) a depository institution, as defined in
section 3(c) of the Federal Deposit Insurance Act
(12 U.S.C. 1813(c));
‘‘(B) an institution-affiliated party, as de-
fined in section 3(u) of such Act (12 U.S.C.
1813(u));
‘‘(C) any Federal credit union or State
credit union, as defined in section 101 of the
Federal Credit Union Act (12 U.S.C. 1752), in-
cluding an institution-affiliated party of such a
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).’’.
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Subchapter G—Enforcement of Support
Orders
SEC. 2361. INTERNAL REVENUE SERVICE COLLECTION OF
ARREARAGES.
(a) COLLECTION OF FEES.—Section 6305(a) of the In-
ternal Revenue Code of 1986 (relating to collection of cer-
tain liability) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(3);
(2) by striking the period at the end of para-
graph (4) and inserting ‘‘, and’’;
(3) by adding at the end the following new para-
graph:
‘‘(5) no additional fee may be assessed for adjust-
ments 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 Welfare’’ 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.
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SEC. 2362. AUTHORITY TO COLLECT SUPPORT FROM FED-
ERAL EMPLOYEES.
(a) CONSOLIDATION AND STREAMLINING OF AUTHORI-
TIES.—Section 459 (42 U.S.C. 659) is amended to read as
follows:
‘‘SEC. 459. CONSENT BY THE UNITED STATES TO INCOME
WITHHOLDING, GARNISHMENT, AND SIMILAR
PROCEEDINGS FOR ENFORCEMENT OF CHILD
SUPPORT AND ALIMONY OBLIGATIONS.
‘‘(a) CONSENT
TO SUPPORT ENFORCEMENT.—Not-
withstanding any other provision of law (including section
207 of this Act and section 5301 of title 38, United States
Code), effective January 1, 1975, moneys (the entitlement
to which is based upon remuneration for employment) due
from, or payable by, the United States or the District of
Columbia (including any agency, subdivision, or instru-
mentality thereof) to any individual, including members of
the Armed Forces of the United States, shall be subject, in
like manner and to the same extent as if the United States
or the District of Columbia were a private person, to with-
holding 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
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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 PERSON.—With respect to notice to withhold in-
come pursuant to subsection (a)(1) or (b) of section 466,
or any other order or process to enforce support obligations
against an individual (if the order or process contains or
is accompanied by sufficient data to permit prompt identi-
fication of the individual and the moneys involved), each
governmental entity specified in subsection (a) shall be sub-
ject to the same requirements as would apply if the entity
were a private person, except as otherwise provided in this
section.
‘‘(c) DESIGNATION OF AGENT; RESPONSE TO NOTICE
OR PROCESS—
‘‘(1) DESIGNATION OF AGENT.—The head of each
agency subject to this section shall—
‘‘(A) designate an agent or agents to receive
orders and accept service of process in matters
relating to child support or alimony; and
‘‘(B) annually publish in the Federal Reg-
ister the designation of the agent or agents, iden-
tified by title or position, mailing address, and
telephone number.
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‘‘(2) RESPONSE TO NOTICE OR PROCESS.—If an
agent designated pursuant to paragraph (1) of this
subsection receives notice pursuant to State proce-
dures in effect pursuant to subsection (a)(1) or (b) of
section 466, or is effectively served with any order,
process, or interrogatory, with respect to an individ-
ual’s child support or alimony payment obligations,
the agent shall—
‘‘(A) as soon as possible (but not later than
15 days) thereafter, send written notice of the no-
tice or service (together with a copy of the notice
or service) to the individual at the duty station
or last-known home address of the individual;
‘‘(B) within 30 days (or such longer period
as may be prescribed by applicable State law)
after receipt of a notice pursuant to such State
procedures, comply with all applicable provi-
sions of section 466; and
‘‘(C) within 30 days (or such longer period
as may be prescribed by applicable State law)
after effective service of any other such order,
process, or interrogatory, respond to the order,
process, or interrogatory.
‘‘(d) PRIORITY OF CLAIMS.—If a governmental entity
specified in subsection (a) receives notice or is served with
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process, as provided in this section, concerning amounts
owed by an individual to more than 1 person—
‘‘(1) support collection under section 466(b) must
be given priority over any other process, as provided
in section 466(b)(7);
‘‘(2) allocation of moneys due or payable to an
individual among claimants under section 466(b)
shall be governed by section 466(b) and the regula-
tions prescribed under such section; and
‘‘(3) such moneys as remain after compliance
with paragraphs (1) and (2) shall be available to sat-
isfy any other such processes on a first-come, first-
served basis, with any such process being satisfied out
of such moneys as remain after the satisfaction of all
such processes which have been previously served.
‘‘(e) NO REQUIREMENT TO VARY PAY CYCLES.—A gov-
ernmental entity that is affected by legal process served for
the enforcement of an individual’s child support or alimony
payment obligations shall not be required to vary its nor-
mal pay and disbursement cycle in order to comply with
the legal process.
‘‘(f) RELIEF FROM LIABILITY.—
‘‘(1) Neither the United States, nor the govern-
ment of the District of Columbia, nor any disbursing
officer shall be liable with respect to any payment
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made from moneys due or payable from the United
States to any individual pursuant to legal process
regular on its face, if the payment is made in accord-
ance with this section and the regulations issued to
carry out this section.
‘‘(2) No Federal employee whose duties include
taking actions necessary to comply with the require-
ments of subsection (a) with regard to any individual
shall be subject under any law to any disciplinary ac-
tion or civil or criminal liability or penalty for, or
on account of, any disclosure of information made by
the employee in connection with the carrying out of
such actions.
‘‘(g) REGULATIONS.—Authority to promulgate regula-
tions for the implementation of this section shall, insofar
as this section applies to moneys due from (or payable
by)—
‘‘(1) the United States (other than the legislative
or judicial branches of the Federal Government) or
the government of the District of Columbia, be vested
in the President (or the designee of the President);
‘‘(2) the legislative branch of the Federal Govern-
ment, be vested jointly in the President pro tempore
of the Senate and the Speaker of the House of Rep-
resentatives (or their designees), and
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‘‘(3) the judicial branch of the Federal Govern-
ment, be vested in the Chief Justice of the United
States (or the designee of the Chief Justice).
‘‘(h) MONEYS SUBJECT TO PROCESS.—
‘‘(1) IN
GENERAL.—Subject to paragraph (2),
moneys paid or payable to an individual which are
considered to be based upon remuneration for employ-
ment, for purposes of this section—
‘‘(A) consist of—
‘‘(i) compensation paid or payable for
personal services of the individual, whether
the compensation is denominated as wages,
salary, commission, bonus, pay, allowances,
or otherwise (including severance pay, sick
pay, and incentive pay);
‘‘(ii) periodic benefits (including a
periodic benefit as defined in section
228(h)(3)) or other payments—
‘‘(I) under the insurance system
established by title II;
‘‘(II) under any other system or
fund established by the United States
which provides for the payment of pen-
sions, retirement or retired pay, annu-
ities, dependents’ or survivors’ benefits,
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or similar amounts payable on account
of personal services performed by the
individual or any other individual;
‘‘(III) as compensation for death
under any Federal program;
‘‘(IV) under any Federal program
established to provide ‘black lung’ bene-
fits; or
‘‘(V) by the Secretary of Veterans
Affairs as compensation for a service-
connected disability paid by the Sec-
retary to a former member of the
Armed Forces who is in receipt of re-
tired or retainer pay if the former
member has waived a portion of the re-
tired or retainer pay in order to re-
ceive such compensation; and
‘‘(iii) worker’s compensation benefits
paid under Federal or State law but
‘‘(B) do not include any payment—
‘‘(i) by way of reimbursement or other-
wise, to defray expenses incurred by the in-
dividual in carrying out duties associated
with the employment of the individual; or
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‘‘(ii) as allowances for members of the
uniformed services payable pursuant to
chapter 7 of title 37, United States Code, as
prescribed by the Secretaries concerned (de-
fined by section 101(5) of such title) as nec-
essary for the efficient performance of duty.
‘‘(2) CERTAIN AMOUNTS EXCLUDED.—In deter-
mining the amount of any moneys due from, or pay-
able by, the United States to any individual, there
shall be excluded amounts which—
‘‘(A) are owed by the individual to the
United States;
‘‘(B) are required by law to be, and are, de-
ducted from the remuneration or other payment
involved, including Federal employment taxes,
and fines and forfeitures ordered by court-mar-
tial;
‘‘(C) are properly withheld for Federal,
State, or local income tax purposes, if the with-
holding of the amounts is authorized or required
by law and if amounts withheld are not greater
than would be the case if the individual claimed
all dependents to which he was entitled (the
withholding of additional amounts pursuant to
section 3402(i) of the Internal Revenue Code of
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1986 may be permitted only when the individual
presents evidence of a tax obligation which sup-
ports the additional withholding);
‘‘(D) are deducted as health insurance pre-
miums;
‘‘(E) are deducted as normal retirement
contributions (not including amounts deducted
for supplementary coverage); or
‘‘(F) are deducted as normal life insurance
premiums from salary or other remuneration for
employment (not including amounts deducted for
supplementary coverage).
‘‘(i) DEFINITIONS.—For purposes of this section—
‘‘(1) UNITED STATES.—The term ‘United States’
includes any department, agency, or instrumentality
of the legislative, judicial, or executive branch of the
Federal Government, the United States Postal Serv-
ice, the Postal Rate Commission, any Federal cor-
poration created by an Act of Congress that is wholly
owned by the Federal Government, and the govern-
ments of the territories and possessions of the United
States.
‘‘(2) CHILD SUPPORT.—The term ‘child support’,
when used in reference to the legal obligations of an
individual to provide such support, means amounts
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required to be paid under a judgment, decree, or
order, whether temporary, final, or subject to modi-
fication, issued by a court or an administrative agen-
cy of competent jurisdiction, for the support and
maintenance of a child, including a child who has at-
tained the age of majority under the law of the issu-
ing State, or a child and the parent with whom the
child is living, which provides for monetary support,
health care, arrearages or reimbursement, and which
may include other related costs and fees, interest and
penalties, income withholding, attorney’s fees, and
other relief.
‘‘(3) ALIMONY.—
‘‘(A) IN
GENERAL.—The term ‘alimony’,
when used in reference to the legal obligations of
an individual to provide the same, means peri-
odic payments of funds for the support and
maintenance of the spouse (or former spouse) of
the individual, and (subject to and in accordance
with State law) includes separate maintenance,
alimony pendente lite, maintenance, and spousal
support, and includes attorney’s fees, interest,
and court costs when and to the extent that the
same are expressly made recoverable as such pur-
suant to a decree, order, or judgment issued in
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accordance with applicable State law by a court
of competent jurisdiction.
‘‘(B) EXCEPTIONS.—Such term does not in-
clude—
‘‘(i) any child support; or
‘‘(ii) any payment or transfer of prop-
erty or its value by an individual to the
spouse or a former spouse of the individual
in compliance with any community prop-
erty settlement, equitable distribution of
property, or other division of property be-
tween spouses or former spouses.
‘‘(4) PRIVATE PERSON.—The term ‘private per-
son’ means a person who does not have sovereign or
other special immunity or privilege which causes the
person not to be subject to legal process.
‘‘(5) LEGAL PROCESS.—The term ‘legal process’
means any writ, order, summons, or other similar
process in the nature of garnishment—
‘‘(A) which is issued by—
‘‘(i) a court or an administrative agen-
cy of competent jurisdiction in any State,
territory, or possession of the United States;
‘‘(ii) a court or an administrative
agency of competent jurisdiction in any for-
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eign country with which the United States
has entered into an agreement which re-
quires the United States to honor the proc-
ess; or
‘‘(iii) an authorized official pursuant
to an order of such a court or an adminis-
trative agency of competent jurisdiction or
pursuant to State or local law; and
‘‘(B) which is directed to, and the purpose
of which is to compel, a governmental entity
which holds moneys which are otherwise payable
to an individual to make a payment from the
moneys to another party in order to satisfy a
legal obligation of the individual to provide child
support or make alimony payments.’’.
(b) CONFORMING AMENDMENTS.—
(1) TO PART D OF TITLE IV.—Sections 461 and
462 (42 U.S.C. 661 and 662) are repealed.
(2) TO TITLE 5, UNITED STATES CODE.—Section
5520a of title 5, United States Code, is amended, in
subsections (h)(2) and (i), by striking ‘‘sections 459,
461, and 462 of the Social Security Act (42 U.S.C.
659, 661, and 662)’’ and inserting ‘‘section 459 of the
Social Security Act (42 U.S.C. 659)’’.
(c) MILITARY RETIRED AND RETAINER PAY.—
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(1) DEFINITION OF COURT.—Section 1408(a)(1)
of title 10, United States Code, is amended—
(A) by striking ‘‘and’’ at the end of sub-
paragraph (B);
(B) by striking the period at the end of sub-
paragraph (C) and inserting ‘‘; and’’; and
(C) by adding after subparagraph (C) the
following new subparagraph:
‘‘(D) any administrative or judicial tribu-
nal of a State competent to enter orders for sup-
port or maintenance (including a State agency
administering a program under a State plan ap-
proved under part D of title IV of the Social Se-
curity Act), and, for purposes of this subpara-
graph, the term ‘State’ includes the District of
Columbia, the Commonwealth of Puerto Rico, the
Virgin Islands, Guam, and American Samoa.’’.
(2) DEFINITION
OF
COURT
ORDER.—Section
1408(a)(2) of such title is amended—
(A) by inserting ‘‘or a support order, as de-
fined in section 453(p) of the Social Security Act
(42 U.S.C. 653(p)),’’ before ‘‘which—’’;
(B) in subparagraph (B)(i), by striking
‘‘(as defined in section 462(b) of the Social Secu-
rity Act (42 U.S.C. 662(b)))’’ and inserting ‘‘(as
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defined in section 459(i)(2) of the Social Secu-
rity Act (42 U.S.C. 659(i)(2)))’’; and
(C) in subparagraph (B)(ii), by striking
‘‘(as defined in section 462(c) of the Social Secu-
rity Act (42 U.S.C. 662(c)))’’ and inserting ‘‘(as
defined in section 459(i)(3) of the Social Secu-
rity Act (42 U.S.C. 659(i)(3)))’’.
(3) PUBLIC
PAYEE.—Section 1408(d) of such
title is amended—
(A) in the heading, by inserting ‘‘(OR FOR
BENEFIT OF)’’ before ‘‘SPOUSE OR’’; and
(B) in paragraph (1), in the 1st sentence,
by inserting ‘‘(or for the benefit of such spouse
or former spouse to a State disbursement unit es-
tablished pursuant to section 454B of the Social
Security Act or other public payee designated by
a State, in accordance with part D of title IV of
the Social Security Act, as directed by court
order, or as otherwise directed in accordance
with such part D)’’ before ‘‘in an amount suffi-
cient’’.
(4) RELATIONSHIP TO PART D OF TITLE IV.—
Section 1408 of such title is amended by adding at
the end the following new subsection:
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‘‘(j) RELATIONSHIP TO OTHER LAWS.—In any case
involving an order providing for payment of child support
(as defined in section 459(i)(2) of the Social Security Act)
by a member who has never been married to the other par-
ent of the child, the provisions of this section shall not
apply, and the case shall be subject to the provisions of sec-
tion 459 of such Act.’’.
(d) EFFECTIVE DATE.—The amendments made by this
section shall become effective 6 months after the date of the
enactment of this Act.
SEC. 2363. ENFORCEMENT OF CHILD SUPPORT OBLIGA-
TIONS OF MEMBERS OF THE ARMED FORCES.
(a) AVAILABILITY OF LOCATOR INFORMATION.—
(1) MAINTENANCE OF ADDRESS INFORMATION.—
The Secretary of Defense shall establish a centralized
personnel locator service that includes the address of
each member of the Armed Forces under the jurisdic-
tion of the Secretary. Upon request of the Secretary
of Transportation, addresses for members of the Coast
Guard shall be included in the centralized personnel
locator service.
(2) TYPE OF ADDRESS.—
(A) RESIDENTIAL
ADDRESS.—Except as
provided in subparagraph (B), the address for a
member of the Armed Forces shown in the loca-
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tor service shall be the residential address of that
member.
(B) DUTY
ADDRESS.—The address for a
member of the Armed Forces shown in the loca-
tor service shall be the duty address of that mem-
ber in the case of a member—
(i) who is permanently assigned over-
seas, to a vessel, or to a routinely deployable
unit; or
(ii) with respect to whom the Secretary
concerned makes a determination that the
member’s residential address should not be
disclosed due to national security or safety
concerns.
(3) UPDATING
OF
LOCATOR
INFORMATION.—
Within 30 days after a member listed in the locator
service establishes a new residential address (or a new
duty address, in the case of a member covered by
paragraph (2)(B)), the Secretary concerned shall up-
date the locator service to indicate the new address of
the member.
(4) AVAILABILITY OF INFORMATION.—The Sec-
retary of Defense shall make information regarding
the address of a member of the Armed Forces listed
in the locator service available, on request, to the Fed-
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eral Parent Locator Service established under section
453 of the Social Security Act.
(b) FACILITATING GRANTING OF LEAVE FOR ATTEND-
ANCE AT HEARINGS.—
(1) REGULATIONS.—The Secretary of each mili-
tary department, and the Secretary of Transportation
with respect to the Coast Guard when it is not operat-
ing as a service in the Navy, shall prescribe regula-
tions to facilitate the granting of leave to a member
of the Armed Forces under the jurisdiction of that
Secretary in a case in which—
(A) the leave is needed for the member to at-
tend a hearing described in paragraph (2);
(B) the member is not serving in or with a
unit deployed in a contingency operation (as de-
fined in section 101 of title 10, United States
Code); and
(C) the exigencies of military service (as de-
termined by the Secretary concerned) do not oth-
erwise require that such leave not be granted.
(2) COVERED
HEARINGS.—Paragraph (1) ap-
plies to a hearing that is conducted by a court or
pursuant to an administrative process established
under State law, in connection with a civil action—
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(A) to determine whether a member of the
Armed Forces is a natural parent of a child; or
(B) to determine an obligation of a member
of the Armed Forces to provide child support.
(3) DEFINITIONS.—For purposes of this sub-
section—
(A) The term ‘‘court’’ has the meaning
given that term in section 1408(a) of title 10,
United States Code.
(B) The term ‘‘child support’’ has the mean-
ing given such term in section 459(i) of the So-
cial Security Act (42 U.S.C. 659(i)).
(c) PAYMENT OF MILITARY RETIRED PAY IN COMPLI-
ANCE WITH CHILD SUPPORT ORDERS.—
(1) 
DATE
OF
CERTIFICATION
OF
COURT
ORDER.—Section 1408 of title 10, United States Code,
as amended by section 2362(c)(4) of this Act, is
amended—
(A) by redesignating subsections (i) and (j)
as subsections (j) and (k), respectively; and
(B) by inserting after subsection (h) the fol-
lowing new subsection:
‘‘(i) CERTIFICATION DATE.—It is not necessary that
the date of a certification of the authenticity or completeness
of a copy of a court order for child support received by the
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Secretary concerned for the purposes of this section be recent
in relation to the date of receipt by the Secretary.’’.
(2) PAYMENTS CONSISTENT WITH ASSIGNMENTS
OF RIGHTS TO STATES.—Section 1408(d)(1) of such
title is amended by inserting after the 1st sentence the
following new sentence: ‘‘In the case of a spouse or
former spouse who, pursuant to section 408(a)(4) of
the Social Security Act (42 U.S.C. 608(a)(4)), assigns
to a State the rights of the spouse or former spouse
to receive support, the Secretary concerned may make
the child support payments referred to in the preced-
ing sentence to that State in amounts consistent with
that assignment of rights.’’.
(3) ARREARAGES OWED BY MEMBERS OF THE
UNIFORMED SERVICES.—Section 1408(d) of such title
is amended by adding at the end the following new
paragraph:
‘‘(6) In the case of a court order for which effective
service is made on the Secretary concerned on or after the
date of the enactment of this paragraph and which provides
for payments from the disposable retired pay of a member
to satisfy the amount of child support set forth in the order,
the authority provided in paragraph (1) to make payments
from the disposable retired pay of a member to satisfy the
amount of child support set forth in a court order shall
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apply to payment of any amount of child support arrear-
ages set forth in that order as well as to amounts of child
support that currently become due.’’.
(4) PAYROLL
DEDUCTIONS.—The Secretary of
Defense shall begin payroll deductions within 30 days
after receiving notice of withholding, or for the 1st
pay period that begins after such 30-day period.
SEC. 2364. VOIDING OF FRAUDULENT TRANSFERS.
Section 466 (42 U.S.C. 666), as amended by section
2321 of this Act, is amended by adding at the end the fol-
lowing new subsection:
‘‘(g) LAWS VOIDING FRAUDULENT TRANSFERS.—In
order to satisfy section 454(20)(A), each State must have
in effect—
‘‘(1)(A) the Uniform Fraudulent Conveyance Act
of 1981;
‘‘(B) the Uniform Fraudulent Transfer Act of
1984; or
‘‘(C) another law, specifying indicia of fraud
which create a prima facie case that a debtor trans-
ferred income or property to avoid payment to a child
support creditor, which the Secretary finds affords
comparable rights to child support creditors; and
‘‘(2) procedures under which, in any case in
which the State knows of a transfer by a child sup-
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port debtor with respect to which such a prima facie
case is established, the State must—
‘‘(A) seek to void such transfer; or
‘‘(B) obtain a settlement in the best inter-
ests of the child support creditor.’’.
SEC. 2365. WORK REQUIREMENT FOR PERSONS OWING
PAST-DUE CHILD SUPPORT.
(a) IN GENERAL.—Section 466(a) (42 U.S.C. 666(a)),
as amended by sections 2315, 2317(a), and 2323 of this Act,
is amended by inserting after paragraph (14) the following
new paragraph:
‘‘(15) PROCEDURES TO ENSURE THAT PERSONS
OWING PAST-DUE SUPPORT WORK OR HAVE A PLAN
FOR PAYMENT OF SUCH SUPPORT.—
‘‘(A) IN GENERAL.—Procedures under which
the State has the authority, in any case in which
an individual owes past-due support with re-
spect to a child receiving assistance under a
State program funded under part A, to issue an
order or to request that a court or an adminis-
trative process established pursuant to State law
issue an order that requires the individual to—
‘‘(i) pay such support in accordance
with a plan approved by the court, or, at
the option of the State, a plan approved by
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the State agency administering the State
program under this part; or
‘‘(ii) if the individual is subject to such
a plan and is not incapacitated, participate
in such work activities (as defined in sec-
tion 407(d)) as the court, or, at the option
of the State, the State agency administering
the State program under this part, deems
appropriate.
‘‘(B) PAST-DUE
SUPPORT
DEFINED.—For
purposes of subparagraph (A), the term ‘past-due
support’ means the amount of a delinquency, de-
termined under a court order, or an order of an
administrative process established under State
law, for support and maintenance of a child, or
of a child and the parent with whom the child
is living.’’.
(b) CONFORMING AMENDMENT.—The flush paragraph
at the end of section 466(a) (42 U.S.C. 666(a)) is amended
by striking ‘‘and (7)’’ and inserting ‘‘(7), and (15)’’.
SEC. 2366. DEFINITION OF SUPPORT ORDER.
Section 453 (42 U.S.C. 653) as amended by sections
2316 and 2345(b) of this Act, is amended by adding at the
end the following new subsection:
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‘‘(p) SUPPORT ORDER DEFINED.—As used in this
part, the term ‘support order’ means a judgment, decree,
or order, whether temporary, final, or subject to modifica-
tion, issued by a court or an administrative agency of com-
petent jurisdiction, for the support and maintenance of a
child, including a child who has attained the age of major-
ity under the law of the issuing State, or a child and the
parent with whom the child is living, which provides for
monetary support, health care, arrearages, or reimburse-
ment, and which may include related costs and fees, interest
and penalties, income withholding, attorneys’ fees, and
other relief.’’.
SEC. 2367. REPORTING ARREARAGES TO CREDIT BUREAUS.
Section 466(a)(7) (42 U.S.C. 666(a)(7)) is amended
to read as follows:
‘‘(7) REPORTING ARREARAGES TO CREDIT BU-
REAUS.—
‘‘(A) IN GENERAL.—Procedures (subject to
safeguards pursuant to subparagraph (B)) re-
quiring the State to report periodically to
consumer reporting agencies (as defined in sec-
tion 603(f) of the Fair Credit Reporting Act (15
U.S.C. 1681a(f)) the name of any noncustodial
parent who is delinquent in the payment of sup-
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port, and the amount of overdue support owed by
such parent.
‘‘(B) SAFEGUARDS.—Procedures ensuring
that, in carrying out subparagraph (A), infor-
mation with respect to a noncustodial parent is
reported—
‘‘(i) only after such parent has been af-
forded all due process required under State
law, including notice and a reasonable op-
portunity to contest the accuracy of such in-
formation; and
‘‘(ii) only to an entity that has fur-
nished evidence satisfactory to the State
that the entity is a consumer reporting
agency (as so defined).’’.
SEC. 2368. LIENS.
Section 466(a)(4) (42 U.S.C. 666(a)(4)) is amended
to read as follows:
‘‘(4) LIENS.—Procedures under which—
‘‘(A) liens arise by operation of law against
real and personal property for amounts of over-
due support owed by a noncustodial parent who
resides or owns property in the State; and
‘‘(B) the State accords full faith and credit
to liens described in subparagraph (A) arising in
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another State, when the State agency, party, or
other entity seeking to enforce such a lien com-
plies with the procedural rules relating to record-
ing or serving liens that arise within the State,
except that such rules may not require judicial
notice or hearing prior to the enforcement of
such a lien.’’.
SEC. 2369. STATE LAW AUTHORIZING SUSPENSION OF LI-
CENSES.
Section 466(a) (42 U.S.C. 666(a)), as amended by sec-
tions 2315, 2317(a), 2323, and 2365 of this Act, is amended
by inserting after paragraph (15) the following:
‘‘(16) AUTHORITY TO WITHHOLD OR SUSPEND
LICENSES.—Procedures under which the State has
(and uses in appropriate cases) authority to withhold
or suspend, or to restrict the use of driver’s licenses,
professional and occupational licenses, and rec-
reational licenses of individuals owing overdue sup-
port or failing, after receiving appropriate notice, to
comply with subpoenas or warrants relating to pater-
nity or child support proceedings.’’.
SEC. 2370. DENIAL OF PASSPORTS FOR NONPAYMENT OF
CHILD SUPPORT.
(a) HHS CERTIFICATION PROCEDURE.—
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(1) SECRETARIAL RESPONSIBILITY.—Section 452
(42 U.S.C. 652), as amended by section 2345 of this
Act, is amended by adding at the end the following
new subsection:
‘‘(k)(1) If the Secretary receives a certification by a
State agency in accordance with the requirements of section
454(31) that an individual owes arrearages of child support
in an amount exceeding $5,000, the Secretary shall trans-
mit such certification to the Secretary of State for action
(with respect to denial, revocation, or limitation of pass-
ports) pursuant to paragraph (2).
‘‘(2) The Secretary of State shall, upon certification
by the Secretary transmitted under paragraph (1), refuse
to issue a passport to such individual, and may revoke, re-
strict, or limit a passport issued previously to such individ-
ual.
‘‘(3) The Secretary and the Secretary of State shall
not be liable to an individual for any action with respect
to a certification by a State agency under this section.’’.
(2) STATE
AGENCY
RESPONSIBILITY.—Section
454 (42 U.S.C. 654), as amended by sections 2301(b),
2303(a), 2312(b), 2313(a), 2333, and 2343(b) of this
Act, is amended—
(A) by striking ‘‘and’’ at the end of para-
graph (29);
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(B) by striking the period at the end of
paragraph (30) and inserting ‘‘; and’’; and
(C) by adding after paragraph (30) the fol-
lowing new paragraph:
‘‘(31) provide that the State agency will have in
effect a procedure for certifying to the Secretary, for
purposes of the procedure under section 452(k), deter-
minations that individuals owe arrearages of child
support in an amount exceeding $5,000, under which
procedure—
‘‘(A) each individual concerned is afforded
notice of such determination and the con-
sequences thereof, and an opportunity to contest
the determination; and
‘‘(B) the certification by the State agency is
furnished to the Secretary in such format, and
accompanied by such supporting documentation,
as the Secretary may require.’’.
(b) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall become effective October
1, 1997.
SEC. 2371. INTERNATIONAL SUPPORT ENFORCEMENT.
(a) AUTHORITY FOR INTERNATIONAL AGREEMENTS.—
Part D of title IV, as amended by section 2362(a) of this
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Act, is amended by adding after section 459 the following
new section:
‘‘SEC. 459A. INTERNATIONAL SUPPORT ENFORCEMENT.
‘‘(a) AUTHORITY FOR DECLARATIONS.—
‘‘(1) DECLARATION.—The Secretary of State,
with the concurrence of the Secretary of Health and
Human Services, is authorized to declare any foreign
country (or a political subdivision thereof) to be a
foreign reciprocating country if the foreign country
has established, or undertakes to establish, procedures
for the establishment and enforcement of duties of
support owed to obligees who are residents of the
United States, and such procedures are substantially
in conformity with the standards prescribed under
subsection (b).
‘‘(2) REVOCATION.—A declaration with respect
to a foreign country made pursuant to paragraph (1)
may be revoked if the Secretaries of State and Health
and Human Services determine that—
‘‘(A) the procedures established by the for-
eign country regarding the establishment and en-
forcement of duties of support have been so
changed, or the foreign country’s implementation
of such procedures is so unsatisfactory, that such
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procedures do not meet the criteria for such a
declaration; or
‘‘(B) continued operation of the declaration
is not consistent with the purposes of this part.
‘‘(3) FORM
OF
DECLARATION.—A declaration
under paragraph (1) may be made in the form of an
international agreement, in connection with an inter-
national agreement or corresponding foreign declara-
tion, or on a unilateral basis.
‘‘(b) STANDARDS FOR FOREIGN SUPPORT ENFORCE-
MENT PROCEDURES.—
‘‘(1) MANDATORY ELEMENTS.—Support enforce-
ment procedures of a foreign country which may be
the subject of a declaration pursuant to subsection
(a)(1) shall include the following elements:
‘‘(A) The foreign country (or political sub-
division thereof) has in effect procedures, avail-
able to residents of the United States—
‘‘(i) for establishment of paternity, and
for establishment of orders of support for
children and custodial parents; and
‘‘(ii) for enforcement of orders to pro-
vide support to children and custodial par-
ents, including procedures for collection and
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appropriate distribution of support pay-
ments under such orders.
‘‘(B) The procedures described in subpara-
graph (A), including legal and administrative
assistance, are provided to residents of the Unit-
ed States at no cost.
‘‘(C) An agency of the foreign country is
designated as a Central Authority responsible
for—
‘‘(i) facilitating support enforcement in
cases involving residents of the foreign coun-
try and residents of the United States; and
‘‘(ii) ensuring compliance with the
standards established pursuant to this sub-
section.
‘‘(2) ADDITIONAL ELEMENTS.—The Secretary of
Health and Human Services and the Secretary of
State, in consultation with the States, may establish
such additional standards as may be considered nec-
essary to further the purposes of this section.
‘‘(c) DESIGNATION OF UNITED STATES CENTRAL AU-
THORITY.—It shall be the responsibility of the Secretary of
Health and Human Services to facilitate support enforce-
ment in cases involving residents of the United States and
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residents of foreign countries that are the subject of a dec-
laration under this section, by activities including—
‘‘(1) development of uniform forms and proce-
dures for use in such cases;
‘‘(2) notification of foreign reciprocating coun-
tries of the State of residence of individuals sought for
support enforcement purposes, on the basis of infor-
mation provided by the Federal Parent Locator Serv-
ice; and
‘‘(3) such other oversight, assistance, and coordi-
nation activities as the Secretary may find necessary
and appropriate.
‘‘(d) EFFECT ON OTHER LAWS.—States may enter
into reciprocal arrangements for the establishment and en-
forcement of support obligations with foreign countries that
are not the subject of a declaration pursuant to subsection
(a), to the extent consistent with Federal law.’’.
(b) STATE PLAN REQUIREMENT.—Section 454 (42
U.S.C. 654), as amended by sections 2301(b), 2303(a),
2312(b), 2313(a), 2333, 2343(b), and 2370(a)(2) of this Act,
is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(30);
(2) by striking the period at the end of para-
graph (31) and inserting ‘‘; and’’; and
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(3) by adding after paragraph (31) the following
new paragraph:
‘‘(32)(A) provide that any request for services
under this part by a foreign reciprocating country or
a foreign country with which the State has an ar-
rangement described in section 459A(d)(2) shall be
treated as a request by a State;
‘‘(B) provide, at State option, notwithstanding
paragraph (4) or any other provision of this part, for
services under the plan for enforcement of a spousal
support order not described in paragraph (4)(B) en-
tered by such a country (or subdivision); and
‘‘(C) provide that no applications will be re-
quired from, and no costs will be assessed for such
services against, the foreign reciprocating country or
foreign obligee (but costs may at State option be as-
sessed against the obligor).’’.
SEC. 2372. FINANCIAL INSTITUTION DATA MATCHES.
Section 466(a) (42 U.S.C. 666(a)), as amended by sec-
tions 2315, 2317(a), 2323, 2365, and 2369 of this Act, is
amended by inserting after paragraph (16) the following
new paragraph:
‘‘(17) FINANCIAL INSTITUTION DATA MATCHES.—
‘‘(A) IN GENERAL.—Procedures under which
the State agency shall enter into agreements with
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financial institutions doing business in the
State—
‘‘(i) to develop and operate, in coordi-
nation with such financial institutions, a
data match system, using automated data
exchanges to the maximum extent feasible,
in which each such financial institution is
required to provide for each calendar quar-
ter the name, record address, social security
number or other taxpayer identification
number, and other identifying information
for each noncustodial parent who maintains
an account at such institution and who
owes past-due support, as identified by the
State by name and social security number
or other taxpayer identification number;
and
‘‘(ii) in response to a notice of lien or
levy, encumber or surrender, as the case
may be, assets held by such institution on
behalf of any noncustodial parent who is
subject to a child support lien pursuant to
paragraph (4).
‘‘(B) REASONABLE FEES.—The State agen-
cy may pay a reasonable fee to a financial insti-
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tution for conducting the data match provided
for in subparagraph (A)(i), not to exceed the ac-
tual costs incurred by such financial institution.
‘‘(C) LIABILITY.—A financial institution
shall not be liable under any Federal or State
law to any person—
‘‘(i) for any disclosure of information
to the State agency under subparagraph
(A)(i);
‘‘(ii) for encumbering or surrendering
any assets held by such financial institution
in response to a notice of lien or levy issued
by the State agency as provided for in sub-
paragraph (A)(ii); or
‘‘(iii) for any other action taken in
good faith to comply with the requirements
of subparagraph (A).
‘‘(D) DEFINITIONS.—For purposes of this
paragraph—
‘‘(i) 
FINANCIAL
INSTITUTION.—The
term ‘financial institution’ has the meaning
given to such term by section 469A(d)(1).
‘‘(ii) ACCOUNT.—The term ‘account’
means a demand deposit account, checking
or negotiable withdrawal order account,
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savings account, time deposit account, or
money-market mutual fund account.’’.
SEC. 2373. ENFORCEMENT OF ORDERS AGAINST PATERNAL
OR MATERNAL GRANDPARENTS IN CASES OF
MINOR PARENTS.
Section 466(a) (42 U.S.C. 666(a)), as amended by sec-
tions 2315, 2317(a), 2323, 2365, 2369, and 2372 of this
Act, is amended by inserting after paragraph (17) the fol-
lowing new paragraph:
‘‘(18) ENFORCEMENT OF ORDERS AGAINST PA-
TERNAL OR MATERNAL GRANDPARENTS.—Procedures
under which, at the State’s option, any child support
order enforced under this part with respect to a child
of minor parents, if the custodial parent of such child
is receiving assistance under the State program under
part A, shall be enforceable, jointly and severally,
against the parents of the noncustodial parent of such
child.’’.
SEC. 2374. NONDISCHARGEABILITY IN BANKRUPTCY OF
CERTAIN DEBTS FOR THE SUPPORT OF A
CHILD.
(a) AMENDMENT TO TITLE 11 OF THE UNITED STATES
CODE.—Section 523(a) of title 11, United States Code, is
amended—
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(1) the provisions of this chapter requiring the
enactment or amendment of State laws under section
466 of the Social Security Act, or revision of State
plans under section 454 of such Act, shall be effective
with respect to periods beginning on and after Octo-
ber 1, 1996; and
(2) all other provisions of this chapter shall be-
come effective upon the date of the enactment of this
Act.
(b) GRACE PERIOD FOR STATE LAW CHANGES.—The
provisions of this chapter shall become effective with respect
to a State on the later of—
(1) the date specified in this chapter, or
(2) the effective date of laws enacted by the legis-
lature of such State implementing such provisions,
but in no event later than the 1st day of the 1st calendar
quarter beginning after the close of the 1st regular session
of the State legislature that begins after the date of the en-
actment of this Act. For purposes of the previous sentence,
in the case of a State that has a 2-year legislative session,
each year of such session shall be deemed to be a separate
regular session of the State legislature.
(c) GRACE PERIOD
FOR STATE CONSTITUTIONAL
AMENDMENT.—A State shall not be found out of compliance
with any requirement enacted by this chapter if the State
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‘‘SEC. 411A. STATE REQUIRED TO PROVIDE CERTAIN INFOR-
MATION.
‘‘Each State to which a grant is made under section
403 shall, at least 4 times annually and upon request of
the Immigration and Naturalization Service, furnish the
Immigration and Naturalization Service with the name
and address of, and other identifying information on, any
individual who the State knows is unlawfully in the United
States.’’.
(c) SSI.—Section 1631(e) of such Act (42 U.S.C.
1383(e)) is amended—
(1) by redesignating the paragraphs (6) and (7)
inserted by sections 206(d)(2) and 206(f)(1) of the So-
cial Security Independence and Programs Improve-
ment Act of 1994 (Public Law 103–296; 108 Stat.
1514, 1515) as paragraphs (7) and (8), respectively;
and
(2) by adding at the end the following new para-
graph:
‘‘(9) Notwithstanding any other provision of law, the
Commissioner shall, at least 4 times annually and upon
request of the Immigration and Naturalization Service
(hereafter in this paragraph referred to as the ‘Service’),
furnish the Service with the name and address of, and other
identifying information on, any individual who the Com-
missioner knows is unlawfully in the United States, and
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‘‘(E) $2,567,000,000 for fiscal year 2001;
and
‘‘(F) $2,717,000,000 for fiscal year 2002.
‘‘(4) INDIAN
TRIBES.—The Secretary shall re-
serve not more than 1 percent of the aggregate
amount appropriated to carry out this section in each
fiscal year for payments to Indian tribes and tribal
organizations.
‘‘(b) USE OF FUNDS.—
‘‘(1) IN GENERAL.—Amounts received by a State
under this section shall only be used to provide child
care assistance. Amounts received by a State under a
grant under subsection (a)(1) shall be available for
use by the State without fiscal year limitation.
‘‘(2) USE FOR CERTAIN POPULATIONS.—A State
shall ensure that not less than 70 percent of the total
amount of funds received by the State in a fiscal year
under this section are used to provide child care as-
sistance to families who are receiving assistance
under a State program under this part, families who
are attempting through work activities to transition
off of such assistance program, and families who are
at risk of becoming dependent on such assistance pro-
gram.