H. R. 2491—770
‘‘(3) to ensure prompt disbursement of the custodial parent’s
share of any payment; and
‘‘(4) to furnish to any parent, upon request, timely informa-
tion on the current status of support payments under an order
requiring payments to be made by or to the parent.
‘‘(c) TIMING OF DISBURSEMENTS.—
‘‘(1) IN GENERAL.—Except as provided in paragraph (2),
the State disbursement unit shall distribute all amounts pay-
able under section 457(a) within 2 business days after receipt
from the employer or other source of periodic income, if suffi-
cient information identifying the payee is provided.
‘‘(2) PERMISSIVE
RETENTION
OF
ARREARAGES.—The State
disbursement unit may delay the distribution of collections
toward arrearages until the resolution of any timely appeal
with respect to such arrearages.
‘‘(d) BUSINESS DAY DEFINED.—As used in this section, the term
‘business day’ means a day on which State offices are open for
regular business.’’.
(c) USE OF AUTOMATED SYSTEM.—Section 454A, as added by
section 12344(a)(2) and as amended by section 12311 of this Act,
is amended by adding at the end the following new subsection:
‘‘(g) COLLECTION AND DISTRIBUTION OF SUPPORT PAYMENTS.—
‘‘(1) IN GENERAL.—The State shall use the automated sys-
tem required by this section, to the maximum extent feasible,
to assist and facilitate the collection and disbursement of sup-
port payments through the State disbursement unit operated
under section 454B, through the performance of functions,
including, at a minimum—
‘‘(A) transmission of orders and notices to employers
(and other debtors) for the withholding of wages and other
income—
‘‘(i) within 2 business days after receipt from a
court, another State, an employer, the Federal Parent
Locator Service, or another source recognized by the
State of notice of, and the income source subject to,
such withholding; and
‘‘(ii) using uniform formats prescribed by the Sec-
retary;
‘‘(B) ongoing monitoring to promptly identify failures
to make timely payment of support; and
‘‘(C) automatic use of enforcement procedures (includ-
ing procedures authorized pursuant to section 466(c)) if
payments are not timely made.
‘‘(2) BUSINESS DAY DEFINED.—As used in paragraph (1),
the term ‘business day’ means a day on which State offices
are open for regular business.’’.
(d) EFFECTIVE DATE.—The amendments made by this section
shall become effective on October 1, 1998.
SEC. 12313. STATE DIRECTORY OF NEW HIRES.
(a) STATE PLAN REQUIREMENT.—Section 454 (42 U.S.C. 654),
as amended by sections 12301(b), 12303(a) and 12312(a) of this
Act, is amended—
(1) by striking ‘‘and’’ at the end of paragraph (26);
(2) by striking the period at the end of paragraph (27)
and inserting ‘‘; and’’; and
H. R. 2491—771
(3) by adding after paragraph (27) the following new para-
graph:
‘‘(28) provide that, on and after October 1, 1997, the State
will operate a State Directory of New Hires in accordance
with section 453A.’’.
(b) STATE DIRECTORY OF NEW HIRES.—Part D of title IV (42
U.S.C. 651–669) is amended by inserting after section 453 the
following new section:
‘‘SEC. 453A. STATE DIRECTORY OF NEW HIRES.
‘‘(a) ESTABLISHMENT.—
‘‘(1) IN GENERAL.—
‘‘(A) REQUIREMENT FOR STATES THAT HAVE NO DIREC-
TORY.—Except as provided in subparagraph (B), not later
than October 1, 1997, each State shall establish an auto-
mated directory (to be known as the ‘State Directory of
New Hires’) which shall contain information supplied in
accordance with subsection (b) by employers on each newly
hired employee.
‘‘(B) STATES WITH NEW HIRE REPORTING IN EXISTENCE.—
A State which has a new hire reporting law in existence
on the date of the enactment of this section may continue
to operate under the State law, but the State must meet
the requirements of this section (other than subsection
(f)) not later than October 1, 1997.
‘‘(2) DEFINITIONS.—As used in this section:
‘‘(A) EMPLOYEE.—The term ‘employee’—
‘‘(i) means an individual who is an employee within
the meaning of chapter 24 of the Internal Revenue
Code of 1986; and
‘‘(ii) does not include an employee of a Federal
or State agency performing intelligence or counterintel-
ligence functions, if the head of such agency has deter-
mined that reporting pursuant to paragraph (1) with
respect to the employee could endanger the safety of
the employee or compromise an ongoing investigation
or intelligence mission.
‘‘(B) EMPLOYER.—
‘‘(i) IN
GENERAL.—The term ‘employer’ has the
meaning given such term in section 3401(d) of the
Internal Revenue Code of 1996 and includes any
governmental entity and any labor organization.
‘‘(ii) 
LABOR
ORGANIZATION.—The 
term 
‘labor
organization’ shall have the meaning given such term
in section 2(5) of the National Labor Relations Act,
and includes any entity (also known as a ‘hiring hall’)
which is used by the organization and an employer
to carry out requirements described in section 8(f)(3)
of such Act of an agreement between the organization
and the employer.
‘‘(b) EMPLOYER INFORMATION.—
‘‘(1) REPORTING REQUIREMENT.—
‘‘(A) IN
GENERAL.—Except as provided in subpara-
graphs (B) and (C), each employer shall furnish to the
Directory of New Hires of the State in which a newly
hired employee works, a report that contains the name,
address, and Social Security number of the employee, and
H. R. 2491—772
the name of, and identifying number assigned under section
6109 of the Internal Revenue Code of 1986 to, the employer.
‘‘(B) MULTISTATE EMPLOYERS.—An employer that has
employees who are employed in 2 or more States and
that transmits reports magnetically or electronically may
comply with subparagraph (A) by designating 1 State in
which such employer has employees to which the employer
will transmit the report described in subparagraph (A),
and transmitting such report to such State. Any employer
that transmits reports pursuant to this subparagraph shall
notify the Secretary in writing as to which State such
employer designates for the purpose of sending reports.
‘‘(C) FEDERAL GOVERNMENT EMPLOYERS.—Any depart-
ment, agency, or instrumentality of the United States shall
comply with subparagraph (A) by transmitting the report
described in subparagraph (A) to the National Directory
of New Hires established pursuant to section 453.
‘‘(2) TIMING OF REPORT.—Each State may provide the time
within which the report required by paragraph (1) shall be
made with respect to an employee, but such report shall be
made not later than 20 days after the date the employer hires
the employee.
‘‘(c) REPORTING FORMAT AND METHOD.—Each report required
by 
subsection 
(b) 
shall 
be 
made 
on 
a
W–4 form or, at the option of the employer, an equivalent form,
and may be transmitted by 1st class mail, magnetically, or electroni-
cally.
‘‘(d) CIVIL MONEY PENALTIES ON NONCOMPLYING EMPLOYERS.—
The State shall have the option to set a State civil money penalty
which shall be less than—
‘‘(1) $25; or
‘‘(2) $500 if, under State law, the failure is the result
of a conspiracy between the employer and the employee to
not supply the required report or to supply a false or incomplete
report.
‘‘(e) ENTRY OF EMPLOYER INFORMATION.—Information shall be
entered into the data base maintained by the State Directory of
New Hires within 5 business days of receipt from an employer
pursuant to subsection (b).
‘‘(f) INFORMATION COMPARISONS.—
‘‘(1) IN GENERAL.—Not later than May 1, 1998, an agency
designated by the State shall, directly or by contract, conduct
automated comparisons of the Social Security numbers reported
by employers pursuant to subsection (b) and the Social Security
numbers appearing in the records of the State case registry
for cases being enforced under the State plan.
‘‘(2) NOTICE OF MATCH.—When an information comparison
conducted under paragraph (1) reveals a match with respect
to the Social Security number of an individual required to
provide support under a support order, the State Directory
of New Hires shall provide the agency administering the State
plan approved under this part of the appropriate State with
the name, address, and Social Security number of the employee
to whom the Social Security number is assigned, and the name
of, and identifying number assigned under section 6109 of
the Internal Revenue Code of 1986 to, the employer.
‘‘(g) TRANSMISSION OF INFORMATION.—
H. R. 2491—773
‘‘(1) TRANSMISSION
OF
WAGE
WITHHOLDING
NOTICES
TO
EMPLOYERS.—Within 2 business days after the date information
regarding a newly hired employee is entered into the State
Directory of New Hires, the State agency enforcing the employ-
ee’s child support obligation shall transmit a notice to the
employer of the employee directing the employer to withhold
from the wages of the employee an amount equal to the monthly
(or other periodic) child support obligation (including any past
due support obligation) of the employee, unless the employee’s
wages are not subject to withholding pursuant to section
466(b)(3).
‘‘(2) TRANSMISSIONS TO THE NATIONAL DIRECTORY OF NEW
HIRES.—
‘‘(A) NEW HIRE INFORMATION.—Within 3 business days
after the date information regarding a newly hired
employee is entered into the State Directory of New Hires,
the State Directory of New Hires shall furnish the informa-
tion to the National Directory of New Hires.
‘‘(B) 
WAGE
AND
UNEMPLOYMENT
COMPENSATION
INFORMATION.—The State Directory of New Hires shall,
on a quarterly basis, furnish to the National Directory
of New Hires extracts of the reports required under section
303(a)(6) to be made to the Secretary of Labor concerning
the wages and unemployment compensation paid to individ-
uals, by such dates, in such format, and containing such
information as the Secretary of Health and Human Services
shall specify in regulations.
‘‘(3) BUSINESS DAY DEFINED.—As used in this subsection,
the term ‘business day’ means a day on which State offices
are open for regular business.
‘‘(h) OTHER USES OF NEW HIRE INFORMATION.—
‘‘(1) LOCATION OF CHILD SUPPORT OBLIGORS.—The agency
administering the State plan approved under this part shall
use information received pursuant to subsection (f)(2) to locate
individuals for purposes of establishing paternity and establish-
ing, modifying, and enforcing child support obligations.
‘‘(2) VERIFICATION OF ELIGIBILITY FOR CERTAIN PROGRAMS.—
A State agency responsible for administering a program speci-
fied in section 1137(b) shall have access to information reported
by employers pursuant to subsection (b) of this section for
purposes of verifying eligibility for the program.
‘‘(3) ADMINISTRATION OF EMPLOYMENT SECURITY AND WORK-
ERS’ COMPENSATION.—State agencies operating employment
security and workers’ compensation programs shall have access
to information reported by employers pursuant to subsection
(b) for the purposes of administering such programs.’’.
(c) QUARTERLY
WAGE
REPORTING.—Section 1137(a)(3) (42
U.S.C. 1320b–7(a)(3)) is amended—
(1) by inserting ‘‘(including State and local governmental
entities and labor organizations (as defined in section
453A(a)(2)(B)(iii)))’’ after ‘‘employers’’; and
(2) by inserting ‘‘, and except that no report shall be filed
with respect to an employee of a State or local agency perform-
ing intelligence or counterintelligence functions, if the head
of such agency has determined that filing such a report could
endanger the safety of the employee or compromise an ongoing
investigation or intelligence mission’’ after ‘‘paragraph (2)’’.